China has agreed to cut tariffs on cars it imports from the US, President Donald Trump has said, after he negotiated a truce in the trade war with Beijing. The announcement boosted the financial markets.
"China has agreed to reduce and remove tariffs on cars coming into China from the US. Currently the tariff is 40 per cent," Trump tweeted on Sunday.
The outcome of the Trump-Xi meeting boosted financial markets in Asia Pacific on Monday. The benchmark Shanghai Composite index led the way with a rise of 2.57 per cent while Hong Kong was up 2.45 per cent and Tokyo closed 1 per cent better off. Australia's benchmark ASX200 index finished the day up 1.84 per cent.
The increases paved the way for sharp rises on European and US exchanges later in the day with futures trade seeing the FTSE100 opening up by 1.6 per cent and the Dow Jones industrial average on Wall Street expected to leap 2 per cent.
But Trump didn't give details about the car tariffs or when the change would happen and what the new tariff level would be, CNN reported. There was no immediate response from the Chinese government on cutting car tariffs.