China To Reduce Tariffs On Cars Imported From U.S.

DEC 3 2018 BY MARK KANE 26

Tesla EVs will be cheaper again.

Donald Trump recently announced that “China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%.”. It’s the latest and fortunately positive turnabout in the ongoing dispute/trade war.

The news will help manufacturers in the U.S. to sell cars in China at a more competitive price and it’s already reflected in higher shares of BMW, Ford, Daimler. It’s of course great news for Tesla, which had to lower its margins to sell cars at 40% import duty.

The deal is temporary – a 90-day cease-fire – just to talk about business at the G20. The long-term satisfied solutions need to be hammered down still.

The 40% tax was set in July of this year, up from the already high 25% (which for a while before the rise was lowered to 15%). Now, it seems that the tax will be again 15%.

Source: Reuters

Categories: China, Tesla

Tags: ,

Leave a Reply

26 Comments on "China To Reduce Tariffs On Cars Imported From U.S."

newest oldest most voted
Big Solar

Good

Benz

First: 25% – 10% = 15%

Then: 15% + 25% = 40%

Now: 40% – 25% = 15%

US and China should both do their utmost to NOT let this trade dispute escalate any further.

zzzzzzzzzz

“Mnuchin said China has agreed to eliminate tariffs on imported automobiles”

John

No one wins in a trade war. Globalism is so prevalent, the idea now of “walling off” another superpower is ridiculous. Tesla may be American, but they are setting up shop in China and poised to employ many Chinese citizens and the potential for China to build stuff in America is possible, too. Which means jobs for Americans.

Let’s all just get along, shall we?

Chris O

Tell it to the Chinese, they had a 25% tariff in place before all of this started vs a 2.5% US tariff. OTOH the US has had a 25% tariff on trucks in place long before this started too.

So yes, low/no tariff level playing field rather than trying to try to boost one’sown industry at the expense of others which will sooner or later result in trade wars is best for global welfare.

Ron M

Were going back to the deal Trump rejected previously I hope. China reduces tariffs on cars to 15% and purchase a 100 billion more in US goods. Xi afforded a good start and continue the negotiations but Trump doesn’t see a good deal when it hits him in the head Instead he wanted a tax on US consumers a loss for farmers.
Accept this and continue talks in private not on Twitter to pacify your brain dead supporters.
Also fire Navarro

Jeff

Anybody know if this is real or just another lie from the Orange moron?

Ron M

There’s a hand shack deal and talks will continue for at least 90 days. I think China is sincere with working towards reducing tariffs, protecting intellectual property. However Navorro needs to be fired and Trump needs to know a good deal when he has one.

esto_perpetua

Insults are easy. Getting facts right is a little harder but not by much. Try it.

Ron M

esto I assume you replied to Jeff’s comment; but Trump doesn’t have facts and truth in his wheelhouse. He has been caught lying 4,800 times already about big and little things. I don’t expect him to stop. I had hoped his supporters recognized it.

Mark.ca

what facts? This is just a “let’s talk later” type of deal….i do however think he will get something done eventually.

Bloggin

China has not confirmed this. His electronic farts don’t mean anything unless backed up by a credible source.

He created this nightmare for the auto industry anyway, since China had already dropped the tariff down to 10% before his ego got in the way.

Ron M

It’s a hand shack deal but I believe Xi will reduce car tariffs and purchase 100 billion more in goods. Back to what Xi did earlier, can Trump screw this up though. Yeah no doubt about it.
He thinks the US is making money when the the US collects a 25% tariff on Chinede goods. He thinks this would reduce the budget deficit. Trump is to ignorant to realize that it’s a tax on US consumers.

Zach

The trade deficit helps finance the federal government deficit. It’s basic accounting, but obviously not something we should expect the president to know.

esto_perpetua

Get your facts straight. Trump did not start this. He is just the one that finally is fighting back in a war that China has been waging for decades and no one had done a damned thing up to now.

Ron M

We were working on this and TPP was part of the plan. You work and coordinate with your allies and friends to make changes.
Yes Trump started the Trade war.
Remember who said tariff wars are easy to win.

Bloggin
That’s not actually true. Negotiations had been going on over a year before he took office, with plans to reduce the tariff to 15% and progressively to Zero within the following year along with other trade aspects. But even after the first phase was in place with bringing the tariff down to 15%, he impatiently tried to force the issue with China, lacking diplomacy, caused a trade war that he thought would be easy to win, with the China response up to 40%, negatively impacting auto manufacturers costing a $billion in steel costs for both big American automakers, and escalating the canceling of already low margin cars, and limiting products built in America for export to China. So Americans lose jobs, plants close, while the same companies build new larger plants in China, putting more Chinese to work. This last tweet fart is just trying to recover from the backlash from the factory workers that voted for him that are losing their jobs that are not coming back…..unless they move to China, or getting advanced education to move into technology or professional positions. Because moving forward, the auto industry is changing forever, with EVs being cheaper to develop, cheaper to… Read more »
Bloggin

The rest of the story……..

“The first part was to reduce the surcharge, but yes there have been specific discussions on where auto tariffs will come down to, but I’m not prepared to talk about the specifics,” Mnuchin later told reporters outside the White House.

Bloggin

Like I said…somebody is already trying to clean up the mess…

“The director of the National Economic Council, Larry Kudlow, meanwhile said that an agreement Trump said he had secured from China to reduce or eliminate tariffs on U.S.-made cars isn’t final, backtracking from Trump’s announcement just two days earlier.”

Bloggin

But wait….isn’t this similar to what Musk tweeted about having funding to go private, with a similar spike in the stock market? Shouldn’t the SEC be investigating trump for this??

Gabriel

In Brazil the tariff is 96% and Trump hasn’t said anything about it, other than praising Bolsonaro so far.

Ron M

Brazil purchases a billion dollars worth of coal and it also purchases ethanol. I don’t believe they charge the US a 96% tariff on either of thses products. Prove me wrong.
I like to believe in facts.

Milfan

Finally a breakthrough right in time for the holiday sales and the last day of the month. I hope Tesla will make use of this opportunity and start selling more.
Ideally China should import as much Methanol & Ethanol as possible and blend it with gasoline. This will not impact their trade since they are just shifting the imports from the OPEC+ oil to the American alcohol based fuels. With plenty of natgas supplies, USA can easily produce Methanol along with Ethanol.

Jason Wang

Nobody can win the trade war

dipthroat

if he said it, it is most likely FAKE NEWS!

dipthroat

I “hate” to say: I told you so! dumbs dumbs

https://www.youtube.com/watch?v=UCC8WH1v-cw

BTW, does trump realize that the billion of dollars made from tariffs are money taken out from US consumers’ pockets? I bet, NO!

like shooting fish in a barrell