Trump gave no other details in its night tweet, little published once agreed with President Xi Jinping a truce in the trade war during the the G-20 Summit in Argentina. In a briefing in Beijing a few hours later, Geng Shuang, spokesman for the Ministry of Foreign Affairs of China, declined to make statements about changes in tariffs on cars.
The tuit emerges once U.S. and China highlight results different from the transcendent Sunday meeting between Trump and Xi. China, which rose to 40 percent tariff to cars of American manufacturing that enter the country in the midst of the commercial fight, has not made a similar announcement concerning tariffs for automobiles.
German Daimler AG and BMW AG auto makers stocks recovered Monday after the U.S. trade agreement with China. Of ratification, statements of Trump also would in automotive as Tesla Inc. a possible respite since the increase in charges will affect sales in the world’s largest automotive market.
China said last week that tariffs on American cars would be 15 per cent if not for the trade dispute and called for a negotiated solution. Chinese officials discussed the possibility of lower tariffs on imports of American cars before Xi would meet with Trump in Argentina, according to a person familiar with the situation, who asked not to be identified by name. But the magnitude and the timing of this reduction is not held, the person said.
Trade war has had a serious effect on automotive companies that manufacture in the United States, which led both to the manufacturer of Mercedes-Benz rival BMW to warn on profits under this year since tariffs were forced to raise prices in China. Sales of cars in the second largest economy in the world slumped for the fifth straight month in October, bringing the market to its first annual fall in at least two decades. This has accumulated pressure on companies of automobiles that are supported in the country to grow in a context of car sales in decline in the United States.
Tesla did not respond to an e-mail query while the Chinese unit of BMW not made no immediate comment in reference to the tweet of Trump.
The tariff reduction benefits most Daimler and BMW to automotive Americans as General Motors Co. or Ford Motors Co. This is because the German luxury brands dominate the list of 10 favorite vehicles imported in China.
«China is not giving too much given that are German manufacturers such as BMW and Daimler that more benefits,» said Janet Lewis, analyst for Macquarie Capital Securities in Tokyo. «In the longer term, China will be more benefited with free trade in automobiles», as Chinese manufacturers such as Guangzhou Automobile Group Co. and Geely Automobile Holdings Ltd. intend to move abroad.