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.
What do Arnold Schwarzenegger, Aubrey Plaza, and Tom Brady all have in common? You'll see them on Super Bowl Sunday, but not on the field. If you only watch the Super Bowl for the ads, here's a sneak peek.
The Federal Communications Commission knows (to loosely quote Drake) "when that [AI robocall] hotline bling, that can only mean one thing" — deception. The agency says bad actors have been using these voices to misinform voters.
David Stryzewski, CEO of Sound Planning Group, breaks down Disney’s latest results, from adding Taylor Swift to building out ESPN, and why Bob Iger’s leadership is crucial.
Kevin Cohee, CEO and chairman of OneUnited Bank, discusses the power of financial literacy and how education and technology can help bridge the racial wealth gap.
Alex McGrath, Chief Investment Officer at NorthEnd Private Wealth, discusses why the A.I. hype can’t power the market forever and how to position investments in the current market.
Paul Verna of Insider Intelligence breaks down how the company is positioned, whether they can make their streaming service profitable, and the upper limit of streaming bundle prices.
From Flamin’ Hot Cheetos to Sweet Heat Starburst, America’s snacks are getting spicier. Now, Coca-Cola wants in on the trend. The beverage giant introduced Coca-Cola Spiced, the first new permanent offering to its North American portfolio in three years.
Taylor Swift’s camp is hitting Jack Sweeney, a junior at the University of Central Florida, with a cease-and-desist letter that blamed his automated tracking of her private jet for tipping off stalkers as to her location.
