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Monday, 26 August 2019 15:48

Carmakers Alarmed by Latest Round of Chinese Tariffs

Written by Keith Laing, The Detroit News
A U.S. flag flies on an American consulate car in China. China on Friday, Aug. 23 retaliated with tariffs that will hit producers of cars in the U.S. A U.S. flag flies on an American consulate car in China. China on Friday, Aug. 23 retaliated with tariffs that will hit producers of cars in the U.S. Greg Baker, AP

Index

Alarm bells are ringing at carmakers after the latest round of retaliatory tariffs that will hit cars exported to China from the United States.

 

China said on Friday, Aug. 23, it will impose tariffs on $75 billion worth of U.S. goods, including cars, in response to President Donald Trump's plans to levy tariffs on $300 billion worth of Chinese goods before the end of the year. In addition to the new levies that take effect Sept. 1 and Dec. 15, China said it will resume a 25 percent tariff that was previously put on U.S. cars, and a 5 percent levy that will again be levied on auto parts and components.

 

Ford Motor Co. and Tesla Inc. likely would feel the biggest impact of all the U.S.-based carmakers.

 

“Ford is the leading exporter of vehicles assembled in the U.S. and we are uniquely a net exporter to China," Ford spokeswoman Rachel McCleery said in a statement. "We encourage the U.S. and China to find a near-term resolution on remaining issues through continued negotiations."

 

She said it is essential for the two countries to work together to advance balanced and fair trade.

 

General Motors Co. and Fiat Chrysler Automobiles NV declined to comment on the latest duties imposed by China, deferring to a statement by the Alliance for Automobile Manufacturers, which lobbies in Washington for the Detroit Three and other carmakers.

 

"This move is unfortunate for consumers and the entire auto sector," the auto alliance said in the statement. "Customers win when trade barriers are lowered, and the auto industry can thrive when there’s a robust and competitive trading environment between two of the world’s largest economies."

 

U.S. carmakers exported 163,618 vehicles to China in 2018, according to the U.S. Department of Commerce's International Trade Administration.

 

Ford Motor Co. sold more than 752,000 vehicles in China in 2018; 16,131 were exported there from the U.S., according to Ford.

 

GM and its partners in China sold 3.64 million vehicles there in 2018, topping the 3.5 million sold by the company in the U.S. Although China is GM's largest market, most of the vehicles GM sells there are built in China.


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