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China’s Car-Tariff Gesture Stirs Hope of a More Lasting Truce 

Andrew Mayeda | Bloomberg | Dec 11th, 2018
Category: Financial News

  • Review follows plans by China to buy more U.S. soybeans
  • U.S. officials have so far found China’s promises lacking

China’s openness to cutting tariffs on U.S. cars is feeding optimism about trade talks with the U.S. But recent history gives investors reason to be cautious about expecting a deal by the March 1 deadline.

Shares of U.S. automakers surged Tuesday after Bloomberg News reported that China’s Cabinet will review a proposal to cut tariffs on U.S. cars to 15 percent from 40 percent, bringing the U.S. in line with what other countries pay, according to people familiar with the matter. President Donald Trump tweeted that “very productive conversations” are taking place with the Chinese, predicting “important announcements” to come.

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