Automakers On Alert As China Imposes New Tariffs On US Built Cars63
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.
Subscribe to GM Authority for more GM China news and around-the-clock GM news coverage.
- Sweepstakes Of The Month: Win a 2023 Corvette Z06 Convertible. Details here.
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…