China’s Ministry of Finance stated on December 14 that China plans to suspend the additional 25% tariff on cars that are manufactured in the United States for three months, starting on January 1, 2019. This planned tariff halt follows China’s purchase of U.S. soybeans, and is another installment of the trade ceasefire that was announced by China’s President Xi last week in an effort to de-escalate the trade war with the U.S.

In a statement on its website, the Ministry of Finance also expressed its hopes that China and the U.S. can speed up negotiations to remove all additional tariffs on each other's goods. The announcement was met with cautious optimism by both national leaders and investors alike.

Joe Hinrichs, president of Ford Motor Co.'s Americas unit, said of the tariff halt, “As a leading exporter of vehicles from the U.S., we are very encouraged by China's announcement today. We applaud both governments for working together constructively to reduce trade barriers and open markets.”

Although automotive exports between the two countries are relatively small, 2018 saw had a 30% decline in volume of imports from the U.S. into China from the previous year, but the tariff cut would bring imports back to 2017 numbers. In conjunction with the soybean purchases, these additional tariffs cuts are meant to lessen the financial impact on producers of Chinese and American goods.

These figurative “olive branches” are a continuation of the talks between President Trump and Xi that took place at the G-20 Summit in Argentina, where Trump and Xi agreed to a truce that delayed the planned January 1 U.S. increase of tariffs on $200 billion worth of Chinese goods.

If you would like to learn more about the latest updates on additional tariffs on U.S.-made cars, you can visit CNBC’s update page.