Hoovey689

iTrader: (16)

U.S. filing trade complaint against China for auto tariffs

Automotive News China reports the United States is set to file a complaint with the World Trade Organization against China for tariffs on American-built vehicles. The duties cover around 80-percent of the vehicles imported from the U.S. and are expected to cost U.S. automakers $3.3 billion. Interestingly enough, General Motors and Chrysler vehicles face higher tariffs than those of other automakers due to the government bailout those manufacturers received under presidents George W. Bush and Barack Obama.

Models like the Jeep Wrangler and Grand Cherokee face tariffs of around 15 percent, while the Buick Enclave and Cadillac CTS face duties of nearly 22 percent. For comparison, the Acura TL, which is built in Marysville, Ohio, gets away with a 4.1 percent tariff. Even so, The Detroit News reports the duties are somewhat symbolic, since vehicles assembled in the U.S. are already expensive to purchase in China.

The White House, meanwhile, said it is filing the complaint because "China must play by the rules of the global trading system."

http://www.autoblog.com/2012/07/05/u...-auto-tariffs/

Hoovey689

iTrader: (16)

22% vs 4.1% holy cow

ba-b4

Didn't we say lets tariff Chinese tires and solar panels? Nothing goes without consequence.

ST430

Only problem with that statement is that these tariffs have been in place for a while, because the Chinese government wants to promote its domestic GM (Shanghai) models it builds instead. This is like if the US slaps tariffs only on Civics imported from Japan as opposed to ones made domestically. It's stupid and unfair in the global marketplace.

spwolf

i dont think this is particularly huge deal as it effects 92k cars while GM alone builds (and profits) from 2million cars it sells in China. But I am sure politicians will eat it up.

I would be more concerned into finding out when will China abolish its 50% foreign owned rule, does anyone know? I cant imagine that lasting forever with WTO.

ST430

It will never be abolished so as long as the Commies rule.....the real question is how much will corporations be willing to give up (in terms of IP) for the opportunity to market in China?

LexFather

With them not selling cars here they also have more leverage to do that. When the time comes we start getting Chinese cars to buy they will have to be more careful with tariffs.

spwolf

but they sell other things here :-)