Industry News: Rumorpile: China May Reduce Tariffs On U.S.-Made Cars

[William Maley]

The Chinese government is considering a proposal to reduce tariffs on U.S.-Built vehicles from the current 40 percent back down to the 15 percent before the trade war broke out between it and the U.S. Sources tell Bloomberg a proposal has been submitted to the cabinet to be reviewed in the coming days.

This proposal stems from a trade summit in Buenos Aires where U.S. President Donald Trump and Chinese President Xi Jinping agreed to a 90-day truce on the trade war earlier this month. After the meeting, Trump tweeted out that "China agreed to “reduce and remove” tariffs on imported American-made cars, something China did not confirm at the time." Shares of various automakers including Diamler, Ford, and Tesla rose on the news.

The trade war between the U.S. and China has taken a toll on automakers. Both BMW and Dimaler have warned of lower profits as tariffs have forced them to raise prices in China. Others such as Volvo and Ford have made changes to production and vehicle plans. 

China's Finance Ministry didn't respond to Bloomberg's request for a comment.

Source: Bloomberg

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[David]

No reason to get excited till the trade war is over and eve if they do reduce it to 15%, nothing gained here at all. So how is Potus 45 being that ultimate deal maker that is making a difference? All we have had is higher prices and stress.

[A Horse With No Name]

[riviera74]

Call me when China cuts their auto tariffs to zero, then we will talk.  Potus 45 is not doing enough to tell mercantile China to embrace free trade; it seems that he wants to practice mercantilism himself.

[David]

4 minutes ago, riviera74 said:

Call me when China cuts their auto tariffs to zero, then we will talk.  Potus 45 is not doing enough to tell mercantile China to embrace free trade; it seems that he wants to practice mercantilism himself.

How about drop it to at least the same 2.5% we charge on them. Equal to Equal, That is a deal making deal!

[Drew Dowdell]

Reciprocal trade. 

[riviera74]

5 hours ago, Drew Dowdell said:

Reciprocal trade. 

Works for me.  Zero is ideal, but I can work with 2.5%

[smk4565]

Chinese Auto sales were down big last month, that market is cooling fast.  That is why they will drop the tariffs.

[Drew Dowdell]

11 hours ago, smk4565 said:

Chinese Auto sales were down big last month, that market is cooling fast.  That is why they will drop the tariffs.

Their whole economy is cooling fast. 

[A Horse With No Name]

51 minutes ago, Drew Dowdell said:

Their whole economy is cooling fast. 

Yep...and no sympathy from me.  They pretty much live off of stolen intellectual property.

13 hours ago, riviera74 said:

Works for me.  Zero is ideal, but I can work with 2.5%

Low tariffs are indeed ideal, one of the things Woodrow Wilson got right during his term.