Mubasher: China said it would temporarily put its extra 25% tariff on US vehicles on hold.

China would suspend 25% tariffs on 144 vehicles and car components, imported from the US, and another 5% duties on further 67 auto items, the Chinese finance ministry said on its website.

The relief would last for three months, starting from 1 January, within the framework of an agreed trade war ceasefire between the world’s two largest economies.

On the sidelines of the Group of 20 (G20) summit in Buenos Aires, US President Donald Trump and his Chinese counterpart Xi Jinping agreed to delay any escalation in the tariff war between Washington and Beijing, and proceed with trade negotiations.

President Trump said that he won a concession during the talks with President Xi, stating that China would lower and eliminate tariffs, which was not immediately confirmed by Beijing.

Since the Trump-Xi meeting, China started purchasing US soybeans again, and now reduces car tariffs, and could commence US corn purchases as steps towards a broader trade deal.

The temporary tariff cut for vehicles imported from the US came as China on track to see its first annual car sales drop in 28 years, amid the trade conflict and a slowdown in the world’s second largest economy.