US and China Cut Tariffs on $90bn of Goods While Ford and GM Keep Building EVs There

The United States and China have agreed to reduce tariffs on billions of dollars worth of goods, signaling a small but real thaw in their long-running trade dispute. The two sides struck a deal covering $30 billion of "nonsensitive" goods from each country—products that are not considered strategically important or a threat to national security, such as everyday consumer items and some agricultural products [250864]. A separate agreement cut tariffs on $60 billion worth of goods, including items like dolls and fireworks [252236]. Together, the moves cover roughly $90 billion in trade.

Both sides described the tariff relief as a confidence-building measure, and negotiations on broader trade issues are expected to continue [250864]. The relief is limited in scope, affecting only a small share of the hundreds of billions of dollars in goods traded between the two economies each year [250864]. Major sticking points remain, including artificial intelligence, Iran, Taiwan, and rare earths [252236].

The tariff deals come as China signals that its push for a multipolar world—a global system where power is shared among several countries rather than dominated by one superpower—does not shut out the United States, at least not yet [254085]. The message suggests Beijing's vision of a world with several major power centers still includes Washington for the time being [254085].

Meanwhile, American automakers are maintaining their electric vehicle partnerships in China despite Washington's efforts to make business there harder. Ford and General Motors (GM) have not cut their EV partnerships in China, according to a review of company statements and public records [254072]. Ford works with Chinese battery maker CATL, while GM builds EVs in China with local partners, including SAIC [254072]. Both companies say they follow all US laws [254072].

The US has raised tariffs on Chinese EVs and restricted some technology sharing, with lawmakers saying the steps protect national security and American jobs [254072]. But Ford and GM still need China, the world's largest EV market, to sell cars and develop new models [254072]. Analysts say leaving China would be costly because Chinese firms lead in battery technology and low-cost production, and cutting ties could slow the American companies' EV plans and raise prices [254072].

The issue is likely to grow as the US election nears, with politicians from both parties wanting a tougher stance on China, even as car companies must balance politics with profits and market share [254072].