Donald Trump Recently Said that China has agreed to cut the taxes on the US made imported cars. Donald Trump and Xi Jinping both decided at the meeting of the G20 to stop the trade war for the period 90 days to stable both country’s declining economy. However, after this decision of ceasing the trade war Donald trump on Sunday officially tweeted that China has agreed to lower the taxes on American made cars. After this tweet of president Trump, the stock market showed some positive response which indicates that the faith investors are restored at least for a short period.
Currently, the automobile industry in the US is not performing well because of the trade war issues with China. Before this decision to cut the extra taxes on the US made cars China used to levied more than 40% taxes on all the US made imported vehicles in their country. Due to which it was getting hard for companies like Ford, BMW, and Tesla to sell their products in China’s market. However, after the successful meeting of both countries leaders at the meeting of G20 China has decided to lower the import tax by more than 25%. According to the report, US carmakers suffered a loss of more than 10 billion dollars because of the trade war issue which impacted profoundly on many company’s financial positions.
However, The US Trade Representatives and White House hasn’t given any official comment on this tweet of Donald Trump. But according to many business experts, this deal must’ve been signed by the countries right after the meeting of G20 since China has decided to lower the taxes on auto vehicles it will be an excellent opportunity for the companies like Tesla, Ford to sell the electric cars in China which is a world’s largest car market. However, it will be interesting to see whether China and the US will be able to get along with each other in future also.