China suspends tariff hikes on $126B of US goods

US President Donald Trump agreed earlier to suspend planned US tariff hikes due to take effect January 1 on Chinese imports while the two sides negotiate.(AP Photo/Andy Wong, File)

China has announced a 90-day suspension of tariff hikes on $126 billion of US cars, trucks and auto parts following its cease-fire in a trade battle with Washington that threatens global economic growth.

The tax agency said the suspension that takes effect January 1 is intended to carry out the agreement reached by Presidents Donald Trump and Xi Jinping during a Dec. 1 meeting in Argentina.

The agency said Beijing will suspend a 25 per cent import charge on $66 billion of cars and trucks and a 5 per cent charge on $60 billion of auto parts.

Trump agreed earlier to suspend planned US tariff hikes due to take effect January 1 on Chinese imports while the two sides negotiate.