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Trump says China agree to mitigate tariffs on US cars after trade war ceasefire

Chinese President Xi Jinping has agreed to cut tariffs below the 40 percent level currently in place on US-made vehicles after the two countries had talks in Argentina.



Trump confirmed the situation on his tweeter handle stating that: “China has agreed to mitigate and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%”.

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During the meeting in Buenos Aires, the US agreed not to increase tariffs on January 1, as had been planned, while China agreed to immediately buy more agricultural products from US farmers.

If no broader deal is reached within 90 days, the US said it would hike tariffs on $200bn of Chinese goods from 10 to 25 percent.

US Trade Representative Robert Lighthizer said last week that he was examining all available tools to raise US tariffs on Chinese vehicles to the 40 percent level that China was charging on US-made vehicles.

A source reports that the Chinese state media on Monday cautiously welcomed the trade war truce on Monday, without mentioning the US January 1 deadline.

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Asian stock markets opened higher on Monday in the wake of the truce, with Tokyo rising by one percent and Hong Kong and Shanghai rising by more than two percent.

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