China’s Ministry of Finance (MOF) has announced that as of July 1 China will cut its tariffs on imported autos to 15 percent from 25 percent. Furthermore, as of the same date China's import tariffs on auto parts will be reduced to six percent, down from between eight percent and 25 percent. According to the MOF, the import tariff reduction on autos and auto parts is a big step to promote the transformation and upgrading of the auto industry, and to meet the demands of consumers. The announcement comes against the backdrop of high-level trade negotiations that aim to avert a trade war between China and the US.