President Donald Trump said on Sunday that China had agreed to “reduce and remove” tariffs on U.S. cars below the 40 percent level that Beijing is currently charging on American-made vehicles. A day after he and Chinese President Xi Jinping called a 90-day cease-fire in their trade war to allow time for negotiations, Trump said on Twitter: “China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%.”
More Trump winning? It certainly sounds good but let’s wait to blow the horns and throw confetti until we see what that percentage is going to be – 39% is still nuts but a 10%? Or less?
Trump is using America’s economic power instead of using military power in pushing back on China as well as the EU (as they also have dropped their tariffs – especially Germany that depends on American sales of its luxury brands). And let’s not forget that the tariffs on pork and soybeans that China put on those American Ag products have now been lifted as well as the outright ban as their crops were insufficient and their pork stocks are suffering from a rampant viral infection. China blinked.
Funny how Communist nations can’t reliably feed their citizens (or worse, deliberately refuse to).