China Cuts Car Tariffs in Latest Move to Ease U.S. Trade Tensions
*By Alisha Haridasani*
China announced Tuesday it is cutting tariffs on imported cars and car parts, the government's latest attempt to ease trade tensions with the United States and appease President Trump.
China, the [world’s largest auto market](https://www.cnbc.com/2011/09/12/Worlds-10-Largest-Auto-Markets.html?page=11), will reduce from 25 percent to 15 percent import tariffs on the wholesale value of foreign-made vehicles. It also said it will slash tariffs on auto parts to as low as 6 percent.
The reduced tariffs, however, may not amount to a huge change for American and other foreign carmakers. More than [90 percent](https://www.nytimes.com/interactive/2017/business/trade-china-protectionism.html) of the foreign model cars sold in China are made there, at factories established over two decades by automakers including General Motors and Ford. Tesla is one of the few American carmakers that has not set up a facility in China, but may have designs to do so.
Most of the cars imported in China are [luxury brands](https://www.bloomberg.com/view/articles/2018-05-22/donald-trump-does-a-favor-for-germany-s-car-giants-chris-bryant), like BMW or Mercedes-Benz.
Last month, China also announced it will allow full foreign ownership of car production facilities. Beijing has required foreign carmakers to establish 50-50 partnerships with Chinese firms in order to manufacture cars in China.
The auto industry had been a major point of trade negotiations between China and the U.S., and a priority for President Trump. In a [tweet](https://twitter.com/realDonaldTrump/status/983284198046826496) last month, he singled out the auto tariffs as a sing of the imbalance in the countries' trade policies, saying that the U.S. only levies a tariff of 2.5 percent on all imported cars. “Sounds like STUPID TRADE!” he said.
Stephen Kates, Financial Analyst at Bankrate, joins to discuss the Fed’s 25-basis-point rate cut, inflation risks, and what it all means for consumers and marke
Big tech earnings take center stage as investors digest results from Alphabet, Meta, Microsoft, Amazon, and Apple, with insights from Gil Luria of D.A. Davidson
Disney content has gone dark on YouTube TV, leaving subscribers of the Google-owned live streaming platform without access to major networks like ESPN and ABC. That’s because the companies have failed to reach a new licensing deal to keep Disney channels on YouTube TV. Depending on how long it lasts, the dispute could particularly impact coverage of U.S. college football matchups over the weekend — on top of other news and entertainment disruptions that have already arrived. In the meantime, YouTube TV subscribers who want to watch Disney channels could have little choice other than turning to the company’s own platforms, which come with their own price tags.
President Donald Trump said he has decided to lower his combined tariff rates on imports of Chinese goods to 47% after talks with Chinese leader Xi Jinping on curbing fentanyl trafficking.
Universal Music Group and AI platform Udio have settled a copyright lawsuit and will collaborate on a new music creation and streaming platform. The companies announced on Wednesday that they reached a compensatory legal settlement and new licensing agreements. These agreements aim to provide more revenue opportunities for Universal's artists and songwriters. The rise of AI song generation tools like Udio has disrupted the music streaming industry, leading to accusations from record labels. This deal marks the first since Universal and others sued Udio and Suno last year. Financial terms of the settlement weren't disclosed.
