China Seeks to Defuse Trade War With Reversals on Cars, Corn

China took more steps to defuse trade tensions with the U.S., confirming it will remove the retaliatory duty on automobiles imported from America and preparing to restart purchases of American corn.

The 25 percent tariff imposed on vehicles as a tit-for-tat measure will be scrapped starting Jan. 1, the finance ministry said Friday. China also may buy at least 3 million metric tons of American corn, said people familiar with the discussions, who asked not to be named as the information is confidential.

The moves come two weeks after President Donald Trump and his Chinese counterpart Xi Jinping agreed to a truce in the trade war at their meeting in Argentina. Trump claimed he won a concession during talks with Xi and said China, the world’s biggest automobile market, would reduce and remove tariffs, a claim that Beijing didn’t immediately confirm.

The White House also officially delayed a rise in tariffs on $200 billion of products that had been due on Jan. 1. The increase will now take effect on March 2, according to a U.S. Trade Representative statement on Friday.

Despite the latest concessions, there remains doubt in Washington and Beijing over whether China is willing to water down its plans to match and exceed U.S. industrial strength, which are one of the root causes of the current fight.