The only problem I see with this is that the reduction of tariffs is supposed to make US autos ‘competitive’ with other foreign manufacturers.
I don’t think the Chinese are that ‘impressed’ with US autos.
That’s kind of what I’m thinking. I’m not so sure we’re gaining much from this. I hope we aren’t giving them much in return.
I’ve noticed some the industry’s POTUS is going to bat for on trade are full of Democrats and establishment Never Trumpers. Biotech, aerospace, etc. Pretty ironic.
In fact, thy would love to get US-made big trucks and SUVs which is what the 40% tariffs were intended to combat. So I think this will actually open a market for US vehicles. Just in time to help combat global cooling!!
The Chinese are impressed with Buick.
General Motor's Buick brand is YUUUGE in China. Seriously. The Chinese love Buick's for some reason.
It would seem Americans are not that impressed with gm or Chrysler either
“I dont think the Chinese are that impressed with US autos.”
That’s OK. That’s what markets are good at - sorting out consumer preferences. Less preferred products should fail.
What should not be happening is that central governments like China should not be putting up trade barriers against us - if they do, we have to offset them with tariffs on their products.
If they beat us in a fair fight - that’s as it should be.
They love some of them. The U.S. exports six times the number of vehicles to China as it imports from China. GM is the #1 foreign market share holder in China and Buick is always one of the top 3 selling brands. Most of the vehicles sold in China are made there, that’s true. But China does import a number. Some of the best selling U.S. models imported into China include the Ford Mustang, Ford Explorer, Jeep Wrangler, Jeep Cherokee, Lincoln Navigator, Lincoln Continental, Lincoln MKC, Chevrolet Camaro, Tesla S. They also import several BMW, Mercedes, and Toyota models made in U.S. plants.
https://www.usatoday.com/story/money/cars/2018/04/10/chinese-auto-tariffs-xi-jinping/503470002/
If their buildings are any example, i don’t think we would be impressed by their cars.
CC