[SmartCat]

BMW and Daimlar are the biggest importers of cars into China from United States, especially SUVs. I wonder if this will have a signifcant positive impact on Jaguar Land Rover sales in China.



https://www.bloomberg.com/news/artic...a-trade-tussle

“This is a tax on Southern Germany, not the U.S.,” analysts at Evercore ISI said on Thursday. “A 25 percent additional auto tariff would represent a $1.73 billion negative tariff impact directed at Southern Germany by China.”

BMW, the largest vehicle exporter from the United States in terms of value, has its largest factory in Spartanburg, North Carolina and faces a $965 million impact from tariffs, with Daimler exposed to a $765 million hit, Evercore ISI said.

The company makes its X3, X4, X5, X6 and X7 sports utility vehicles in Spartanburg, and the trade dispute will only add pressure to move production of volume sellers like the X5 to markets outside the United States, a senior BMW source said.

https://www.reuters.com/article/us-u...-idUSKCN1HC1A8

[blackwasp]

Due to the rising trade tensions with the US, China has proposed a 25% tax on cars built in the United States. This will affect over 2,70,000 vehicles, most of which are manufactured by the German companies. In terms of monetary value, German carmakers account for US$ 7 billion of the US$ 11 billion total car exports from US.

BMW currently makes the X3, X4, X5, X6 and X7 SUVs at the Spartanburg plant in South Carolina. The company would be hit by US$ 965 million in tariffs, while rival Daimler would stand to lose US$ 765 million. Currently, BMW exports overs 18% its cars sold in China from the Spartanburg factory. Leading up to the trade standoff, the company has already moved the X3 production to a factory in Rosslyn, South Africa and one in Shenyang, China.

X3 sales used to account for over 35% of the company's total exports, which have since been moved out of the US. However, moving production from one place to another is expensive and requires months of planning and implementation. The Chinese regulators have also called for increasing local sourcing of auto ancillaries leading to more production being moved over to China. In addition to German brands, companies like Tesla and Ford have also been affected by the increased tariffs.

The Chinese government has further revealed that they would not hesitate to increase the import duty to 50% for cars and automobile parts as a tit-for-tat move against the US President's proposed levy on Chinese products.



Source - Reuters

Link to the Team-BHP News

[i74js]

This would be interesting when two large economies lock horns with each other. China is also spearheading the move against de-dollarization of world economy which has raised concerns not only within the US but with various rating agencies like standard & poor as well as at the International Monetary Fund !

God bless America !

[libranof1987]

Signs of ceasefire?

Chinese President Xi Jinping on Tuesday said his government would "significantly lower" tariffs on vehicle imports this year.

The pledge addresses one of the gripes of US President Donald Trump, who has threatened to impose new tariffs on $150 billion of Chinese goods in a tense trade dispute between the world's two largest economies.

http://money.cnn.com/2018/04/09/news...ade/index.html