China’s 10% additional tariff on vehicles with large engines imported from the US came into effect on Monday as the two countries failed to reach a deal on the blanket levy of the Trump administration on Chinese goods.
According to the Chinese state broadcaster CCTV, additional tariffs were implemented on Monday against goods, including vehicles, including vehicles including 2.5 liters, to bring the total impost to 25%.
The export of such vehicles is low relative to the number of cars in which companies, including the General Motors Company, are localized locally with joint venture partners. According to customs data, the manufacturers last year sent vehicles worth about $ 3.1 billion with large engines of the US.
Additional tariffs will apply to vehicle manufacturers including GM and Ford Motor Company, who are already struggling in China as local drivers have switched on electric cars made by domestic manufacturers led by Beed Company GM last year. For your troubled China operations.
What Bloomberg Intelligence says
Mercedes – and to some extent BMW – is moderately exposed to China’s retaliatory 10% tariffs imported from SUV and USA. Both German brands have made the US their global production hub for SUVs, yet since 2022, high-margin BMW X5 has been produced locally. For Mercedes, additional tariffs can reduce EBIT by 1.5% in 2025, without reducing factors such as to increase prices (the average discount in the list price was made hard, already about 15 for SUVs. % Is). – Michael Dean, BI Automotive Analyst
To appeal to rich Chinese buyers, GM launched a premium import service called Duorant Guild in 2022, offering vehicles such as GMC Yucon and Chevrolet Taho Sport Utility Vehicles. Both are powered by such engines that are 3 liters or more.
However, Trump with Tariff threatened to impose on Canada and Mexico before delayed with leaders of the countries, the situation may be liquid. Trump has said that he will soon make a call with Chinese President Xi Jinping, and China’s Foreign Ministry has also urged dialogue and consultation to remove the trade war on a full scale.
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