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Buick Envision May Be Spared As China Trade Deal Nears

Currently, the U.S.-market Buick Envision is produced by SAIC-GM in China. After the crossover is assembled in Shanghai, it’s exported to North America for sale in the U.S. market. However, if the China-specific tariffs currently proposed by the Trump Administration were enacted, the Buick Envision would be subject to a hefty tax up to 25 percent, which would effectively raise its price tag by $8,750, if GM decides to pass the tariff-related cost to the customer, or eat into The General’s profits with the crossover. With Buick Envision sales already not doing that great, the tariff could effectively lead GM to discontinue the Buick Envision in the U.S. market. Luckily, China and the U.S. appear to be close to a trade deal that could spare the crossover from a tariff-induced death.

The good news comes courtesy of U.S. Treasury Secretary Steven Mnuchin who, in an interview with, stated that a trade deal with China is “90 percent” complete. Mnuchin also said that President Trump will meet with President Xi Jinping at the G20 summit this weekend with the aim of resolving any lingering trade disputes.

Photo: Gage Skidmore

Photo: Gage Skidmore

“Obviously we’re looking forward to the meeting between President Trump and President Xi,” Mnuchin told CNBC. “The message we want to hear is that they want to come back to the table and continue because I think there is a good outcome for their economy and the U.S. economy to get balanced trade and to continue to build on this relationship.”

Trump and Xi forged a truce in December at the G20 meeting in Buenos Aires, but talks broke down in May.

2019 Buick Envision exterior - zoom 005

GM previously petitioned the U.S. government to exclude the Buick Envision from future Chinese tariffs, but that request was recently denied. If talks once again break down, the automaker will face a tough four-way decision: raise prices, let the tariff into profits, move production to North America, or kill the U.S.-spec Buick Envision outright.

Previously, GM also produced the Cadillac CT6 PHEV in China, but the plug-in hybrid model was discontinued after the 2018 model year.

Source: CNBC

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Jonathan is an automotive journalist based out of Southern California. He loves anything and everything on four wheels.

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Comments

  1. China thinks they have time on their side given the recent political poll numbers that show how almost every Democratic candidate will be able to beat Trump convincingly which means needing to hold their breaths for another 18 months because if the Democrats win.. it’ll mean that China will win and not just in the trade wars because China knows that Democrats always take the easy path and unwilling to fight which will mean that China could have the world’s top economy and military within a decade.

    Reply
    1. Wow, sounds like you must have this all figured out. Typical right wing nut.

      Let’s keep this site about cars instead of YOUR political views.

      Reply
      1. Yeah let’s keep it on cars not gutless, principless, pathetic, liberal cowards….

        Reply
      2. Typical left wing nut. Afraid of differing opinions.

        Reply
  2. Trump 2020

    Reply
  3. I think the next Envision will be built in the United States. Sourcing will be a major issue in this summer’s contract talks.

    Reply
  4. Good job on the writer of this article not making this an “orange man bad” thing. Keep being impartial sir. You are rare.

    Reply
  5. We need to protect America and not give in to China. When China becomes the most powerful nation on earth we will b destroyed. Thank God for what our President is doing. The last president sold us out. Too many companys moved to other nations for cheap labor, some child labor. Keep jobs in America.

    Reply

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