Carmakers rise on reports China moving towards cutting US auto tariffs
Shares in US automakers have motored ahead by more than 2 per cent in pre-market trade — and taken European rivals along for the ride — after media reports China is moving towards cutting the tariffs it placed on American-made vehicles.
In the wake of a meeting on trade between US President Donald Trump and his Chinese counterpart Xi Jinping earlier this month, Mr Trump tweeted that “China has agreed to reduce and remove tariffs on cars coming into China from the US” No further details or timeline were provided, and Beijing did not immediately confirm any change in duties.
China is moving towards cutting the tariffs on US auto imports to 15 per cent from 40 per cent, according to Bloomberg, which cited people familiar with the matter. Beijing in July imposed duties of 40 per cent on imported US vehicles in retaliation for Washington’s decision to levy duties on billions of dollars of Chinese imports.
Any move from Beijing to reduce the tariffs on US autos, as well as the resumption of purchases of US soyabeans and other agricultural commodities, could help facilitate an end to the trade war between the two countries.
Shares in General Motors were up 3 per cent in pre-market trade in New York on Tuesday, while those in Ford were up 2.5 per cent, with futures for the S&P 500 up 1 per cent.
In Europe, shares in Volkswagen were up 3.7 per cent, Fiat Chrysler gained 3.1 per cent, while BMW and Daimler both rose about 2.4 per cent. The continent’s Stoxx600 benchmark was up 1.9 per cent.