China announced yesterday that it would cut tariffs on auto imports from July 1, the latest sign of a thaw in trade frictions with the United States, reports AFP from Beijing.

Beijing has announced a flurry of liberalisations and reforms since coming under fire from the Trump administration and some European politicians for its protectionist policies.

The planned reduction in import duties from 25 per cent to 15 per cent is a boon for international carmakers keen to grow sales in the world’s largest auto market but may fall short of fulfilling US President Donald Trump’s expectations that Beijing match US tariffs of 2.5 percent. Demands reportedly put to Beijing by Washington at the start of trade talks called on China to lower all tariffs to at least match those of the US.

Trump has been following the issue closely and on Monday tweeted, “On China, Barriers and Tariffs to come down for first time.”

The announcement in Beijing came days after Vice Premier Liu He and US Treasury Secretary Steve Mnuchin led negotiations in Washington which ended with an agreement to pull back from the brink of a trade war.