China Slashes Tariffs on Car Imports

 China announced Tuesday it will slash tariffs on imported cars, a move that could benefit the global auto industry.China’s Finance Ministry said auto tariffs will be reduced from 25% to “around 13.8%,” and levies on car parts will come down from 10% to 6%.

“Volkswagen AG (VLKAY) , the world’s second largest carmaker, rose 0.7% in Frankfurt trading following the statement as rivals BMW AG (BMWYY)  (+1.6%) and Daimler AG (DMLRY) (+1.18%) outpaced the DAX performance index, which was marked 0.12% lower by mid-morning. The Stoxx 600 Automobiles and Parts Index, the sector benchmark, gained 0.53% in the opening 90 minutes of European trading,” reports The Street. China says the change will take effect July 1st.

In April, President Donald Trump blasted China over its seemingly unfair import duties on cars.

“When a car is sent to the United States from China, there is a Tariff to be paid of 2 1/2%. When a car is sent to China from the United States, there is a Tariff to be paid of 25%. Does that sound like free or fair trade. No, it sounds like STUPID TRADE – going on for years!”