General Motors was put on high alert Friday as China imposed fresh tariffs on US-made goods including a new 25% tariff on cars exported from America.
The new 25% tariff comes in addition to existing tariffs imposed on American-made cars, bringing the total duty imposed on the vehicles to just under 50%.
In a statement, the Alliance for Automobile Manufacturers, which lobbies on behalf of GM and other automakers that build vehicles in the US, said the new tariffs are “unfortunate for consumers and the entire auto sector.”
“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,” the statement also said. “Automakers encourage all parties to take actions leading to a healthy trade relationship between China and the United States.”
President Trump responded to the tariffs on twitter, ordering US companies to pull out of China and begin making products in the United States.
“Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA,” Trump said in a tweet sent out Friday afternoon.
“We don’t need China and, frankly, would be far better off without them,” another tweet read.
….better off without them. The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must STOP. Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing..
— Donald J. Trump (@realDonaldTrump) August 23, 2019
According to Reuters, GM stock fell three percent on the news. The automaker sold 3.64 million vehicles in China in 2018, though the majority of the vehicles it sells there are made locally. U.S. carmakers exported 163,618 vehicles to China in 2018.
American automakers aren’t the only ones watching the US-China trade row carefully. Daimler and BMW also export certain vehicles that they make in the US to China. The American Big Three, namely Ford, are still the biggest exporters of US vehicles to China, however.
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Source: Reuters
Comments
This is not looking very good for our Big Three at all. Hope I am wrong.
from what i’ve read, BMW/MB will suffer more than the big 3 since they export more US made vehicles to china than anyone else.
Every major Auto Maker desperately needs the China market.
No every automaker needs North America not china. More vehicles are sold in china than anywhere else. Less vehicles are sold in North America. However North America is where though most profit is made.
Steve,
MB and BMW are making plans to transfer production out of the US and to even close the plants in the US if that continues. They are the largest US exporters of cars.
the world is preparing to give the middle finger to the US.
Coming soon .. Two Dolla General ?
It’s time for the US government to stop permitting US companies from being sold to Chinese companies. IBM’s personal computer division became Lenovo, Motorola became a Lenovo division. Even GMs mrc suspension is now Chinese since being sold to the Italians who sold to the Chinese. Can’t build it all here if the owners of the patent is a Chinese company!
thank you, I am sick and tired of our jobs being shipped overseas and we need to clean up here period.
why are giving and borrowing money to and from china anyways, they don’t need us.
Blame the U.S economy for buying imported products. Check your own neighbors and write down how many have a U.S. brand vehicle, and the answer is less than 40%!! Then ask them why they bought an import. The answers would be quality and price. U.S. products have equal or better quality, but the imports cost less. So if the POTUS wants to keep jobs in the U.S., the imports must be regulated and taxed (either from Asia or Europe). If the basic consumers won’t help, then the U.S manufacturing power will drop even more.
Imports don’t cost less, atleast when I was shopping around for a sedan in 2016. It came down to the Camry Hybrid, Accord Hybrid, and Malibu Hybrid. I chose the Malibu Hybrid because the powertrain was smooth and came in at $26K with good tech. The Accord Hybrid has a beautiful interior, but the powertrain felt like a Boat Anchor. The Camry Hybrid had unrefined hybrid operation and dated tech. However, the Camry was priced at $28K, and Accord at $29K. If the Accord came down to $26K, I would have got it. But the dealership refused to go below $27,495, even after I told them that a competitor was willing to sell the Malibu Hybrid for $26K.
So few cars are imported into China and it really has little effect on American automakers.
The harm in the long run is the China Economy as it is big but fragile. This trade war will hurt both sides but the longer it goes on the more it will hurt China.
Everyone hates that China undercuts our industry. They all complain but then they get upset when anyone tries to stop it. This is one of those deal no pain no gain. Giving away our industry was easy earning it back will take time and less Walmart prices.
China is a Communist country. I fear they can outlast us on this one.
Big Business (hence Donors) will not Stand for Big loses going forward if this continues. They will only accept so much until the Lobbyists tell the President to fold. Just my thoughts on all of this.
Go Trump this is long over due. And the Chinese actually respect those who fight for their nations, territory and treasure vs pathetic acquiesce. Gutless wimps cow tow and lose and this is a fight that quite simply is just beginning. The Communist Chinese will begin to get more globally aggressive as they attain the resources needed to start taking territories. It’s already happening in South America and Africa, predatory lending, then confiscation of assets… God bless Trump he’s the only person with the guts yo take them on…
trump created this mess and now he is looking around for someone to blame. the head of the fed is suspect number one although rates are pretty damn low as it is.
typical trump. make a mess and expect someone else to clean it up. let’s see if this newest con will work.
because he warned us that china is communist, their no better than we are and now china is gonna pay the price for their actions, our politicians should have never made business with them and now they are gonna learn the hard way.
if the economy suffers, the first victim will be trump.
Nope, the economy suffered for years steve, why we are giving money and borrowing money from china anyways, we should focus on here at home.
Don’t forget China owns a great deal of US debt. A new “splendid isolation” where the US basically settles back on its own territory instead of going for world economic dominance, can only work if the US has no foreign debt. However, foreign debt has skyrocketed and continues to do so. That must be addressed first to safeguard the US economy in such a scenario.
Beastie boys warned us about china.
if this becomes a contest on who can suffer more or outlast the other, i’d put my money on china.
trump just proved support for these tariffs is thin by delaying the latest tariff threat until after the holiday shopping season.
if this is a war with china supported by the american people, trump couldn’t even ask them to pay a little bit more for christmas? but then again, he has been saying china is paying for these tariffs instead of the US consumer but we all know that is BS.
Like china is any better, look what they did to their people, china is no better than us.
they aren’t better but they can control their population.
china doesn’t have elections. they control the media. they suppress dissent. they control the internet. they’ve locked up hundreds of thousands of muslims in re-education camps.
it is basically trump’s wet dream.
china needs to be punished for putting all of us through over the years, we need to get out of china period and focus on America, I feel sympathy for the Chinese people, not their government.
If the United States has the political will, we would easily outlast China. Generally speaking they’re the sellers and we’re the buyers, and it’s very lopsided. Historically, when trade wars happen between predominately buying vs. selling partners the buying partner usually wins.
Also, once the supply chain shifts we can make most whatever we need right here in the US. Where’s China going to find another market our size?
steve,
You’re full of crap.
You can’t win a trade war against a dictatorship.
What history are you referring to? The one you made up.
The last real trade was led to the great depression of the 30’s and has been unanimously condemned as making everything considerably worst.
China makes almost everything consumed in the US or components of them including in pharma and the food industry. They have by far the biggest bat.
For God’s sake, educate yourself!
Bert –
There’s no liberal like an idiot liberal. US GDP in 2018 was $20.5 Trillion US GDP 2018. Chinese imports into the US in 2018 were $557.9 Billion, or a little less than 3% of our GDP. And yet you state:
“China makes almost everything consumed in the US or components of them including in pharma and the food industry. They have by far the biggest bat.”
The food industry line was the real tell that you don’t know what you’re talking about. We *export* food to China, and generally import a bunch of electronics and consumer goods.
Howd’ya like dem apples?? 😀
My opinion is China has already won this one.
I do not believe China needs us as much as people think.
I believe China is just changing who they deal with, who to get the best deal with, who will we get a better deal from ?
I also believe China will outlast the suffering.
This is no different than the government shutdown, in my opinion.
The Trump admin will just push it until the US people say enough his enough. The trouble is, I think this one will be harder to ( quick fix ), unless the government is going to make up the expense to the US population, and I think Trump is trying to figure out a way to do that. ( taxes, interest rates, etc. ). The main trouble is the US population is borrowing less, even though interest is low. And the investors are the same people, and fewer than before. And where is the US government going to get the money, more deficit ? Russia like Trump ? China is in control in China, they control their money, people and investors, they control everything.
We will see, we always do.
I am glad Trump is delivering his message straight to the people on Twitter. I could not agree with him more, especially on the intellectual property theft and fentanyl problem.
People don’t realize that there no gain without pain. I am willing to endure so that the communist Chinese get put in their place.
thank you, china has put us through he** and now they need to suffer the same pain.
If the POTUS was a “great person”, he will not use Twitter. He will use TV and radio messages, as the past great Presidents did, especially Ronald Reagan, the best Republican President of the 20th century.
You mean the reagon who sold arms to the enemy and lowered top tax bracket by 50% and made the working man pat taxes on his social security? What an idiot you both are…
“TV and radio”? Mr. Ford Owner please notice the Model T has been superceded just the same as TV and radio for instant communication. Seems Twitter is now the only way to get read news from the source, sometimes!!
To all the morons on this thread blaming Trump & and thus supporting a manipulative, controlling communist Government, GET A FRIGGIN CLUE. Spend some of your valuable time you waste in American social media apps on Chinese made smartphones with stolen intellectual property and get some HISTORY of what China is actually doing to the World “FREE” trade market into that Kool aid swamped brain of yours. #BoycottChina fools. It CAN be done in most cases. Buy as FEW Chinese made products as possible peeps!! China dumps most of crap you don’t need on our markets. There are options on the necessities (I.E. I love the Buick Envision, but will NEVER buy a “made in China” vehicle UNTIL they practice FAIR trade; quit manipulating their currency to dump their products on world markets AND quit stealing American intellectual property. Unfortunately, That may be NEVER.
I Know, but china does not care and never will care.
CHINA HAS ALREADY WON. IT’S COMPLETELY DEL USIONAL TO EVEN THINK YOU CAN WIN AGAINST A COMMUNIST DIC TATORSHIP.
The Chinese are laughing at the orange baboon. Mu -ricans can’t even build a toaster without Chinese components, let alone a single car by any brand.
The Chinese can shut down the US and even the US military by not shipping components. Ig …norant and ar …rogant Mu -ricans will soon find out. That would be even more devastating than 10 nuclear bombs. BOOM!!!!
So you’re plan for convincing people here is to say that we can’t beat a large Communist dictatorship *and* that Americans are stupid and we suck.
Niiiiice. Mebbe go back to Charm School? PS – please ask the Soviet Union how we do against Communist dictatorships while you’re at it.
You may not have noticed but the Soviet Union is on the way back. They elected and swayed your electoral process and very obviously control your president which clearly appeared to have been blackmailed and just bought out. On top of that he’s married to a Soviet borned hooker.
So the Russian Soviets control your electoral process and the Chinese Communists control your economy. Do you consider that mission accomplished?
stfu
I guess the truth stings doesn’t it? ????
Wonder if that Morgan Stanley spokesperson still sees GM as a ‘strong buy’?
With months and months of discounts and rebates and 0% financing having been around, Cruise Automation having postponed its autonomous taxi fleet for indefinite time, and GM not being present globally any more, there’s indeed no reason for increased stock targets; quite the contrary. The whole reign of Mrs. Barra has been an almost flat stock exercise, despite billions of share repurchase and selling / closing brands and factories worldwide, plus an increased dependence on China.
The largest losses (of any company in the world at the time) and the largest collapse of market share happened under Roger Smith.
Barra has positioned the company well for the future with the capital available.
The Chinese expansion took place under the previous CEO.
70% Export
China has been slowly crawling in the belly of USA for years! China has gotten far enough in to armstrong us. Why, writing’s on the wall! They will continue to eat us from the inside out until we do exactly what Trump is saying we need to do!
Americans say one thing and do another. Is the rise of Wal-mart forgotten history? American jobs were doomed from the first Japanese transistor radio. China will starve a million of their people if need be.
“China will starve a million of their people if need be.”
Unlike the US, China is a united country who will win at any cost. And they are winning big time. Chinese middle class is double the size of the US middle class and auto sales are on their way to be double the sales in the US.
Chinese are buying high end properties all over the world and buying companies at a furious pace. They’re winning in a very big way.
There is a lot of economic illiteracy in this country and some of it is seen here.
WW3 has been going on and we have not countered because we have not had our Pearl Harbor moment yet.
China has volume but they don’t have the dollar. When push comes to shove America is holding the aces. Now that does not mean it will be easy or immediate.
Like in any war there will be some pain, loss and sacrifice.
The real danger is if the present admin goes after China and the next caves back to the old ways.
Everyone complains about China in DC but till now we have only appeased them.
The harsh truth is American jobs and higher wages will require higher prices.
What happens when all the lemmings spend all their money on cheap Chinese crap and then complain about the Chinese…
I get sick and tired of hearing “Trump’s Tariff War with China”.
It’s not Trump’s war, it’s America’s tariff “war”.
If all American citizens would back up and support the Trump Administration
on its efforts to establish some Fair Trade with China, then perhaps the
Chinese Gov’t would not be so inclined to play chicken with us.
They listen to the Lefties running for President and figure they will get the
deal they want if Trump is defeated.
Time Americans united for the benefit of the Country, not the politicians.
Tariffs are sooo much fun and very very easy to win said the Genius ……
no AMERICAN auto should be assembled in china by communist hands if china wants AMERICAN autos they should be exported to them the job you save could be your own
Tom G,
When it comes to cars, some Americans create big drama, yet all their money goes to China when they buy electronics, furniture, pharma, food, building supplies, tools, clothing…. Essentially everything else they buy. Without China, might as well close down all US retail stores.
And those US assembled cars, they’re filled with Chinese parts including almost all the electronics. So you can’t build a single one without good old Chinese sourced parts.
here is a novel idea –make it here in America with American knowledge that was taught to the communist china . I on the other hand look to see where it is made -if I have a choice it would be from the USA — again the job you save could be your own .
maybe the big mouth in chief should be the first to follow your(and his own) advice but that would be too obvious.
China’s been giving a steady, furious middle finger to the US over more than two pathetic decades of unfair trade practices. Our government and our so called “allies” have thus far been complicit, dutifully pulling down their pants and lubing up to accommodate whatever power-hungry China could stick to them. But since these traitorous morons represent us, they’ve in no uncertain terms empowered China to stick it to the American people for 2+ decades. Without hesitation, China has obliged our so called leaders with fervor and glee.
For the entire time this has occurred, a stunning coalition of everyday American traitors and idiots from sea to shining sea (aka just plain folk) have smiled and waved “bye-bye” as their jobs were steadily outsourced and dutifully suffered the indignity of being stripped of the right buy almost anything not proudly labeled “Made in China”. We’re programmed to turn our backs as the Chinese government strongarms our companies to surrender US technology and 51% ownership of US enterprises manufacturing in China – but that hardly matters because these corporations can’t possibly limbo too low to access the coveted Chinese market which ironically wouldn’t even exist if not for decades of government approved transfer of countless billions of dollars from US bank accounts to communist China strictly to benefit a few very powerful and greedy stakeholders in these anti-American ventures. But lest we forget, due credit to the hypocrite consumer willing to put his countrymen out of work for the luxury of spending far less on any given item than what him/her (pronouns?) well knows it’d otherwise be worth. It’s been a feeding frenzy all the way around. Any wonder why there’s hardly any water left what with all the blood?
American corporations and their bought politicians knowingly sunk the middle class and the much ballyhooed Labor Unions because American workers with all their “special needs” are just too damned expensive! Constantly bellyaching for healthcare, paid vacation and maternity, even paternity leave – 8 hour workday, even 4-day workweeks – and living wages! $15.00 per hour minimum wage? You gotta be kidding – we’ll find us a Third World country with a bunch of starving sustenance farmers we can exploit! Just look at the good we’re doing for humanity! Someday these poor saps will be able to buy their own BMW (after just 20 years of enslavement if they don’t jump to their death from our multi–story sweatshop out of sheer desperation and exhaustion first!) But, ohhhh yeeaaahhh forget about all that. Let’s go to Walmart! We’re constantly jonesing for cheap, disposable stuff we don’t even need so we can fill our insatiable voids and while we’re at it, the oceans with discarded plastic junk!! And, awesome, now we can blame it all on Trump!!!
It’s high time the gig was up with China. Anyone with an eye for the future should be saying “Amen!” to President Trump’s long overdue reckoning for China’s ongoing trade rape. Wake up, Americans (Bolsheviks?) Try looking just a bit beyond the tips of your crappy made in China Pinocchio noses.
maybe the big mouth in chief should be the first to follow your(and his own) advice but that would be too obvious.
Isn’t the President’s China trade crackdown exactly what all this Chicken Little hubbub is about? Am I missing something?
i’m referring to all of trump’s china made schlock that has been manufactured there for decades and continues today.
I cannot account for every piece of Trump branded merchandise that has ever been sold, but I can tell you that every item I found for sale tonight – 8-25-19 – on DJTs 2020 official website is proudly made in the USA. I’m not so pessimistic that I cannot interpret this positively.
100% of the crap his daughter was selling came from China. And all his stuff, including those ugly ties came from China. If he recently changed that, it’s another effort to mislead his disciples. While building, he used materials that came from China including steel. Whatever was the cheapest and to hell with American manufacturers.
President Trump is the first to challenge China’s abuses and no amount of partisan bickering will lessen the positive impact of renegotiated trade policies that are beneficial to American interests.
We are our own worst enemy… And it could be the same in other countries, I don’t know… Why, we are the “world’s most powerful country,” I don’t know. Perhaps, it’s really is that God has blessed us in spite of ourselves because but for a few handful of true Christians left, most are turning their back on God…
Being an old man now, I remember when American cars and parts were built to last only about 5 years or so… The idea being that this would force people to keep buying new products and thereby keeping the economy moving. Then, Japan, and others, started selling far superior products in the U.S. People started gobbling them up because they lasted longer and worked better than U.S. products… Whereas, Japanese products were vastly inferior, until they woke up and started making superior products. Until about somewhere about 10 to 15 years ago, the U.S. products started getting better. Now, for example, I have a made in the USA Grasshopper mower. My neighbor has a KUBOTA tractor/mower. The Grasshopper is a better built products. Even though, now most foreign makers make their products in the U.S.
Our Congress (not all of them hopefully) are serving to make money. Their goal is to make connections, make as much money and influence as they can before they get out. Don’t believe me? Look at the ex-congressmen’s lifestyle…. Compare that to what they were before they ran for congress… I believe that is why the liberals can’t stand Trump. He messed up their money making scheme for the duration he is in office. I wouldn’t be surprised if the real power lies in wealthy business and or people in this and other countries. And perhaps even other countries control our congress…
As long as this country’s “public servants” are of a greedy, self serving mentality… it’s going to be a long struggle…