The Game of Chess Continues

By: Pam Corn / December 3, 2018


Late on Sunday President Trump tweeted the announcement to the United States that China has agreed to cut tariffs on automobiles imported from the US which currently stand at 40%.  Detail on the timing and level of reduction are somewhat vague at this point.   

This information comes after Saturday’s announcement was made that President Trump and Chinese President Xi Jinping will hold off on further tariffs in the trade war between the two countries for the next 90 days. During this time, American and Chinese officials will continue to negotiate through their disagreements on technology transfer, intellectual property and agriculture.

"Both parties agree that they will endeavor to have this transaction completed within the next 90 days. If at the end of this period of time, the parties are unable to reach an agreement, the 10% tariffs will be raised to 25%," the statement added from the White House. The White House Administration has threatened to double the tariffs on already slapped $250 billion worth of Chinese imports, while the Chinese government has targeted tariffs on $110 billion in US goods. This continues to raise fears among businesses that the global economy could be dragged down by the standoff between both economies.

In April of this year, President Xi made the announcement to cut auto tariffs on imported cars which he followed through three months later by reducing them from 25% to 15%. Unfortunately he imposed new tariffs of 40% on American made passenger vehicles shortly thereafter.

Any reduction in tariffs “is very good news for some niche products,” said Yale Zhang, the managing director of Automotive Foresight, a Shanghai consulting firm. “The international giants have already localized most of their mass production cars.”

At this point it is unclear if the tariffs on US cars will be completely eliminated or just reduced.



Categories: China, United States, automobiles, tariff

Written by

Pam Corn

Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.


Contact Us