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Mercedes-Benz slashes prices in China after trade truce

Daimler AG-owned Mercedes-Benz will cut prices in China following the country's recent decision to temporarily suspend additional 25% tariffs on U.S.-made vehicles for three months starting January, Reuters reported Dec. 17.

The German luxury car brand will reduce the price of four models by between 36,000 yuan and 135,000 yuan until March 31, the report said, citing a company statement.

The report comes shortly after California-based carmaker Tesla Inc. cut the price of its Model S sedan and Model X sports utility vehicle in China, also as a result of the trade truce between the U.S. and China.

Daimler's German peer Bayerische Motoren Werke AG was also recently reported to be cutting its prices in China by 4%.

As of Dec. 17, US$1 was equivalent to 6.90 Chinese yuan.