China to 'cut United States vehicle tariff to 15%'

Soybean farmer Raymond Schexnayder Jr. overlooks his farm outside Baton Rouge in Erwinville Louisiana US in this file

Soybean farmer Raymond Schexnayder Jr. overlooks his farm outside Baton Rouge in Erwinville Louisiana US in this file

In a brief statement, the Chinese commerce ministry said Liu had spoken with Mnuchin and Lighthizer on a pre-arranged telephone call. It may actually matter more to foreign automakers with factories in the USA than for Ford and General Motors (GM).

The back-and-forth is the latest in a trade tow triggered by USA claims that China engages in "unfair" trade practices, such as theft of intellectual property. The U.S. now charges a 27.5 percent tax on imported cars from China.

Chinese vehicle dealers also perked up their shares, hoping that the temporary US-China treaty will help improve the domestic market.

The U.S. Department of Agriculture in July had authorized up to $12 billion in aid for farmers and ranchers hit by the fall-out from Trump's escalating trade war with China, a major buyer of American agricultural products, and the agency outlined payments for the first half last August.

China has reportedly proposed cutting tariffs on US-made cars to 15%, the same tax levied on auto imports from other countries.

In a long-sought concession to the U.S., China agreed to label fentanyl, the deadly synthetic opioid responsible for tens of thousands of American drug deaths annually, as a controlled substance.

"I just heard today that they're buying tremendous amounts of soybeans".

It turns out the President was right, and China is reducing its tariffs from 40 percent to just 15 percent, according to a report by the Wall Street Journal.

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Financial markets have alternatively recovered and slumped on each new hint of progress or increased tensions between the world's largest economies.

Stock markets aroused on Wednesday as U.S. President Donald Trump sounded energetic about an economic agreement with China, while sterling rose off multi month lows as Prime Minister Theresa May promised to battle a test to her initiative.

US President Trump's social media post does not include further details regarding the deal he made with Chinese President Xi Jinping.

Over the next three months, United States and China will negotiate over structural changes of China's policies on other USA products like intellectual property protection, cyber intrusions and theft, services, technology, agriculture, and non-tariff items.

Chicago Board of Trade (CBOT) soybeans traded higher on Wednesday morning amid continued optimism on trade talks with China.

The office of the US Trade Representative, which is leading the discussions, did not respond to a BBC request for comment.

German automakers have been getting hit particularly hard from both sides of the global trade war.

The USDA reported export sales of US corn in the week to December 6 at 903,200 tonnes for the 2018/19 crop year, below a range of trade expectations for 1.0 million to 1.5 million tonnes. Soybeans are the single most valuable U.S. agricultural export and China bought 60 percent of those exports a year ago, worth US$12.25 billion.

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