China moves to cut tariffs on US cars to 15%

China has reportedly proposed cutting tariffs on US-made cars to 15%, the same tax levied on car imports from other countries.

China's cabinet will review the plans, which would undo the 40% import duty China imposed on US cars this summer.

The proposal, the timing of which remains uncertain, comes as the two countries restart trade talks.

President Donald Trump said earlier this month China would cut the tariffs.

However, the claim has not yet been confirmed by Chinese officials, sowing confusion.

Tuesday's reports in US media, which were based on anonymous sources including a car industry executive, said China outlined the plan on a recent telephone call between top trade negotiators from the two countries.

In a tweet, Trump said the two sides were having "very productive conversations".

China's commerce ministry confirmed that the two sides had spoken. In a statement, it said the conversation concerned "pushing forward the timetable and roadmap for the next stage of economic and trade consultations work."

Shares in car companies, including BMW, rose on the reports.

Trump claimed he won a concession during trade talks with Chinese President Xi Jinping in Argentina earlier this month. The proposal in the works helped to substantiate his claims. While reversing the retaliatory duty is a major climb-down by Beijing, it could re-focus the two sides toward implementing the trade-war truce.

In May, after talks in Washington, the US agreed to hold off on tariff threats, while China said it would reduce the import duty on foreign cars from 25% to 15%.

However, that deal fell apart within weeks, after Trump decided to move ahead with tariffs.

In retaliation, China raised the duty on US car imports to 40%, though it proceeded with the lower rate on imports from other countries.

The tension had escalated in recent days with the arrest of Huawei Technologies Co. Chief Financial Officer Meng Wanzhou over alleged sanctions violations. A Canadian court released Meng on bail Tuesday, pending further proceedings on U.S. efforts to extradite her.