By Associated Press
BEIJING — China’s government says it will postpone planned punitive tariffs on U.S.-made automobiles and other goods following an interim trade deal with Washington.
Sunday’s announcement came after Washington agreed to postpone a planned tariff hike on $160 billion of Chinese goods and to cut in half penalties that already were imposed.
“China hopes to work with the United States on the basis of equality and mutual respect to properly address each other’s core concerns and promote the stable development of Chinese-U.S. economic and trade relations,” said a Cabinet statement.
U.S. Trade Representative Robert Lighthizer said that under Friday’s agreement, China committed to buy $40 billion of American farm products over the next two years. He said China also promised to end its long-standing practice of pressuring companies to hand over their technology as a condition of market access.
Speaking Sunday on the CBS News program “Face the Nation,” Lighthizer said that while minor details remained, “this is totally done, absolutely.”
Beijing had planned to impose 25% duties on American-made autos on Sunday, which would have raised the total charge to 40%. Hardest hit were Germany’s BMW AG (ETR:XE:BMW) and Daimler AG’s (FRA:DE:DAI) Mercedes unit, which ship U.S.-made SUVs and other cars to China.
Other goods were targeted for 10% and 5% penalties.
MarketWatch contributed to this report.