China has agreed to reduce the tariffs that it imposed on cars that are coming from the United States of America. The rate decreased from 40 percent to 15 percent.
The shares in the car firms in the United State experienced a slight jump as the immediate reaction to the said news.
The shares in General Motors were up by 2.8 percent, while Tesla was up by 0.7 percent and Ford at 0.65 percent.
Meanwhile, markets in the United States were up slightly since the news broke. The S&P 500 improved by 0.18 percent, while the Nasdaq was up by 0.46 percent. on the other hand, the Dow was down by 0.19 percent.
Earlier in the day, some reports suggested that China was ready to reduce the tariffs imposed on cars that are made in the United States. Bloomberg reported that a proposal to reduce the tariffs to 15 percent from the current 40 percent was submitted to China’s Cabinet for their review.
Earlier in the day, Donald Trump, the President of the United States of America, said in a tweet: “Very productive conversations going on with China! Watch for some important announcements!’
The markets in the United States have been shaken because of the arrest of Meng Wanzhou, the chief financial officer of Huawei, last week.
Meng is the daughter of the Huawei’s founder. She was arrested in Canada and could face extradition to the United States. The charges are not known, however, the United States has been examining the Chinese firm on suspicion of violating trade sanctions with Iran since 2016.