Trump' s Fury Ignites Over New Chinese Auto Tariffs CarBuzz News Features New Cars Used Cars Sell My Car Shopping Tools Car Reviews Car Finder Compare Cars Best Cars Car Dealerships Used Car Reviews Car Advice Home News Trump' s Fury Ignites Over New Chinese Auto Tariffs

Trump' s Fury Ignites Over New Chinese Auto Tariffs

Aug. 23, 2019 2:40 PM ET by Jared Rosenholtz Government / 9 Comments What does this mean for American automakers selling in China? Global trade has been put into a very precarious situation lately with US President Donald Trump threatening tariffs against close trade partners like Mexico. Trump was able to avoid a trade war with Mexico but following a 25% tariff on parts and vehicles built in China, China is now ready to retaliate. The Associated Press reports that China will announce tariff hikes on $75 billion of US products in direct response to Trump's planned tariff increases. Tariffs of 10% and 5% will begin on September 1st and December 15th respectively, matching Trump's planned hikes. It is currently unknown which goods will be impacted. China will also impose tariffs of 25% and 5% on US-made vehicles and auto parts starting on December 15th. Kyodo News Companies like Tesla, who currently manufacture parts in China for use in vehicles sold in the US, are looking at this issue with great interest and trepidation. The conflict between the US and China could cause economic growth to slow in an economy that has been signaling towards a downturn. Trump and Chinese President Xi Jinping initially reached an agreement to temporarily suspend the tariffs but further negotiations yielded no solutions earlier this year. The two are scheduled to meet in Washington next month to negotiate a resolution. Trump went on Twitter to say, "Our great American companies are hereby ordered to immediately start looking for an alternative to China," meaning there may not be a solution in sight. BMW BMW The companies expected to be hit hardest by a trade war are BMW, Tesla, Ford, and Mercedes-Benz. BMW was the largest exporter of cars in the US in 2018 with more than 87,000 SUVs going from Spartanburg to China, the most of any US automotive manufacturer. Around 164,000 vehicles were sent from the US to China in 2018, according to the Center for Automotive Research, which was down from around 262,000 in 2017. In an effort to avoid losing 12% of its revenue exporting over 14,000 cars from California to China, Tesla is planning to build a factory in China to assemble the Model 3 sedan. Those plans could be put into serious doubt following a response from the US. Trump seems confident he can reach a deal with China saying, "I will be responding to China's Tariffs this afternoon. This is a GREAT opportunity for the United States." Tesla Buick Cadillac

Join The Discussion

Show Comments (9)

Gallery

7 Photos Tags: #Tesla News #Government #Industry News #Smart Buy

Related Cars

Tesla Model 3 Jared Rosenholtz Editor-at-Large After graduating with an MBA, Jared pursued his love of cars by becoming an automotive journalist. An internship with CarBuzz grew into his current position as Editor At Large. Jared now spends most of his time evaluating new vehicles and chasing the latest news stories in the automotive industry. When he’s not attending Cars & Coffee events on the weekend, Jared loves to watch NFL football and cruise around with the top down in his German convertible. Contact Jared @Carsnbites @jar_rosenholtz LoginSign Up Home News Features Car Reviews Car Advice 2021 CarBuzz Awards New Cars Used Cars Future Cars Compare Cars Sell My Car Car Dealerships Buy Here Pay Here Used Car Reviews Popular Tags Cars # Video # TOP # Spy Shots # Reveal # Rumor # Auto Show # Supercar # Tuning # Car Culture # Industry News # Motorsport Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Make Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Car Type SUVs Crossovers Sedans Coupes Trucks Sports Cars Wagons Vans Hatchbacks Convertibles Small Cars Luxury Cars Electric Cars Hybrid Cars Future Cars By Price Up to $15K $15K - $25K $25K - $35K $35K - $45K $45K - $55K $55K - $75K $75K - $100K $100K - $200K $200K - $300K Above $300K Back To Top