by After a long period of trade disputes, the latest negotiations between US and Chinese representatives have yielded some progress. Although a final resolution is not yet in place, both sides have reached a compromise. As part of the new deal, a temporary reduction in customs tariffs on imported goods for a period of 90 days has been agreed upon. This could be the first step towards more significant changes if the deal stands the test of time.
According to the terms of the deal, the USA will reduce additional tariffs on Chinese imports from 145% to 30%. In turn, China will cut its tariffs on American goods from 125% to 10%. These changes will be in effect for 90 days, giving negotiators time to find a long-term solution.
In practice, the consequences of this deal remain not entirely clear, especially for the automotive industry. A 25 percent customs tariff on vehicles and parts remains in effect as before, with some temporary exceptions. The situation, as always, remains complex. However, in theory, the temporary easing of trade restrictions could provide automakers with more freedom in choosing Chinese components.
Chinese-made electric cars, as before, cannot enter the US market due to tariffs introduced during the Trump administration. However, the situation with other models, such as Lincoln, remains uncertain. Whether the new deal will lead to any significant changes for these vehicles is a question that remains unanswered for now.
“Today, following the conclusion of a new deal with the United Kingdom, President Donald Trump has reached an agreement with China to reduce tariffs and end trade restrictions. This creates a foundation for further negotiations on opening markets for American goods,” a White House statement said.
Although the announcement sounds optimistic, the real effect will depend on the subsequent actions of both sides. They have only 90 days to turn this temporary pause into a permanent trade agreement.
