General Motors will have to contend with additional tariffs that will affect the cars it exports from China to the United States. On Wednesday, Robert Lighthizer, the U.S. trade representative, announced a new round of trade measures that includes a 25-percent tariff on Chinese cars exported to the U.S, according to a Financial Times report.
At present, the move doesn’t affect domestic Chinese automakers since they do not presently sell cars in the U.S. However, General Motors, notably, builds the 2019 Cadillac CT6 Plug-In and 2019 Buick Envision crossover in China for export to the U.S. Now, said cars will face a 25-percent tax coming into the country. The old tariff was 2.5 percent, and the new figure matches China’s 25-percent tariff on imported U.S. cars.
GM released a statement following the latest tariff announcement and it reads:
We continue to believe both countries value a vibrant auto industry and understand the interdependence between the world’s two largest automotive markets. We support a positive trade relationship between the U.S. and China, and urge both countries to continue to engage in constructive dialogue and pursue sustainable trade policies.
According to the report, GM imported 29,878 Envisions to the U.S. from China last year, which made up 17 percent of Buick’s total sales last year.
Ford also released a statement encouraging the U.S. and China to hold more constructive discussions. The Dearborn, Michigan, based automaker plans to import the 2019 Focus from China as well.