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| The tariffs cut comes after China earlier this year also announced plans to liberalise foreign ownership limits in the auto sector |
China will cut tariffs on most imported cars to 15 percent from July 1, the finance ministry said on Tuesday following a thaw in trade tensions with the United States.
The planned
reduction in import duties from 25 percent is a boon for international
automakers but may come short of fulfilling US President Donald Trump's
expectations of matching US tariffs of 2.5 percent.
The
announcement came days after Vice Premier Liu He and US Treasury Secretary
Steve Mnuchin led negotiations in Washington that ended with an agreement to
pull back from the brink of a trade war.
President
Xi Jinping said in April that China would "considerably lower"
tariffs on cars by the end of the year as part of a range of measures seen as
an olive branch to Trump with the two countries embroiled in the trade spat.
The cut to
15 percent will likely be welcomed by automakers selling cars in China, with
Toyota importing its Lexus brand and American giant Ford shipping in most of
its Lincolns.
Earlier
this year, China also announced plans to liberalise foreign ownership limits in
the sector, which had forced most foreign carmakers into joint ventures with
China's state-owned companies.
China
currently restricts foreign auto firms to a maximum 50 percent ownership of
joint ventures with local companies.
But the
changes will end shareholding limits for new energy vehicle firms as soon as
this year, followed by commercial vehicles in 2020 and passenger cars in 2022.
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