Offbeat: Trade war: American autos look to be hit the most by both US and China tariffs - PressFrom - US
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Offbeat Trade war: American autos look to be hit the most by both US and China tariffs

12:26  14 september  2018
12:26  14 september  2018 Source:   cnbc.com

Trump's trade war with China is still raging — here are the states that could end up getting whacked

  Trump's trade war with China is still raging — here are the states that could end up getting whacked President Donald Trump is threatening to escalate his trade war with ChinaTrump is reportedly pushing advisers to impose tariffs on another $200 billion worth of Chinese goods as early as next week. The move would be a major escalation of the US-China trade war and result in roughly half of all Chinese imports to the US being subject to tariffs.

U . S . automakers in China are feeling the most pain as some American companies are getting hurt by new tariffs from both the White House and Beijing, according to a survey released this week from the American Chamber of Commerce in Shanghai and Beijing-based American Chamber of Commerce

Some American companies are getting hurt by new tariffs from both the U . S . and China , according to a survey released this week from AmCham Shanghai and Beijing-based AmCham China .


U.S. automakers in China are feeling the most pain as some American companies are getting hurt by new tariffs from both the White House and Beijing, according to a survey released this week from the American Chamber of Commerce in Shanghai and Beijing-based American Chamber of Commerce in China.

The automobile industry is in the crosshairs of rising trade tensions between the two countries. In July, China raised the tariff on imports of U.S. autos to 40 percent just days after broadly cutting duties on foreign-made vehicles and parts to 15 percent from 25 percent.

Trump's tariffs could hit $200 billion of Chinese goods this week

  Trump's tariffs could hit $200 billion of Chinese goods this week The United States could impose tariffs on roughly half of all Chinese goods entering the country by the end of the week. require(["medianetNativeAdOnArticle"], function (medianetNativeAdOnArticle) { medianetNativeAdOnArticle.getMedianetNativeAds(true); }); President Donald Trump's proposed tariffs on $200 billion of Chinese goods could go into effect as soon as Friday when a public comment period on the taxes concludes. It's unclear whether the new tariffs will be set at 10% or 25%.

Some American companies are getting hurt by new tariffs from both the U . S . and China , according to a survey released this week from AmCham Shanghai and Beijing-based AmCham China .

China and the United States are engaged in a trade war as each country continues to dispute tariffs placed on goods traded between them.

The move came as both countries implemented tariffs this summer on $50 billion worth of goods from the other. Vehicles and components appeared on both lists. U.S. President Donald Trump administration has also proposed duties on an additional $200 billion worth of Chinese goods, while Beijing is planning counter tariffs on $60 billion worth of U.S. goods.

Industries of U.S. businesses operating in China that are most impacted by initial $50 billion tariffs from both sides

a close up of a device© Provided by CNBC

The initial round of U.S. tariffs has affected 80.5 percent of survey respondents in the automotive industry, and 75 percent say the Chinese duties have hit them. That makes the industry the only one to appear in the ranks of the three or four most impacted by tariffs from both sides.

American automakers losing ground in a shrinking Chinese market

  American automakers losing ground in a shrinking Chinese market American carmakers are losing ground in a shrinking Chinese market, and their problems are mostly tied to a lack of competitiveness rather than the trade war, an industry body said. require(["medianetNativeAdOnArticle"], function (medianetNativeAdOnArticle) { medianetNativeAdOnArticle.getMedianetNativeAds(true); }); The market share of U.S. brands fell to 10.7 percent in the first eight months of 2018 from 12.2 percent a year earlier, according to the China Association of Automobile Manufacturers. The drop was caused by companies including Ford Motor Co.

“ We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly. White House officials said on Monday that China could win relief from the tariffs by acceding to the administration’s trade demands, including allowing American

The US has hit 0bn of Chinese goods with tariffs since July, and China has retaliated by imposing duties on 0bn of US products. China has pretty much given up nothing in this deal because the future tariffs threatened from the Beijing side were retaliatory in nature and only to be applied if the

Visitors look at Ford models at Auto Guangzhou in Guangzhou, China November 17, 2017.© Provided by CNBC Visitors look at Ford models at Auto Guangzhou in Guangzhou, China November 17, 2017. Overall, the survey found more than 60 percent of respondents are affected by the U.S. and Chinese tariffs, and significantly more expect negative impact from the proposed second round of duties.

U.S. companies that have supply chains running through China or that conduct a significant part of their operations there face "dual headwinds" from trade tensions, said Hannah Anderson, global market strategist at J.P. Morgan Asset Management. Such challenges "are especially strong for companies that engage in a high degree of specialization and invest significantly for innovation."

The combined tariffs are reducing profits and increasing manufacturing costs for more than 60 percent of respondents in the automotive industry, the survey found.

As a result of such business pressures, roughly half of respondents in the automotive industry said they are looking to source components or assembly outside of China and the U.S., the survey said. A quarter of companies in the industry are relocating China-based manufacturing to southeast Asia, the report said.

Trump imposes tariffs on $200B more of Chinese goods

  Trump imposes tariffs on $200B more of Chinese goods The Trump administration is imposing tariffs on $200 billion more in Chinese goods next week, escalating a trade war between the world's two biggest economies and raising prices on a range of consumer goods from handbags to bicycle tires. The tariffs will start at 10 percent and rise to 25 percent starting in 2019.The tariffs will start at 10 percent and rise to 25 percent starting Jan. 1.

The tariffs on China by the Trump administration shift what has primarily been a war of words between China said it will hit back by imposing its own tariffs on United States goods. The latest action appears to be a victory for the more hard-line faction of the Trump administration, including the

China and the US have embarked upon a full-scale trade war as both sides lob threats of new trade tariffs . On Tuesday July 10, President Donald Trump's administration released a list of proposed tariffs on 0bn worth of goods, ranging from auto parts to food ingredients to construction material.

The survey of more than 430 AmCham China and AmCham Shanghai member companies, including 36 in automotive and transportation, was conducted between Aug. 29 and Sept. 5.

Members of AmCham China include local branches of General Motors, Ford, BMW, Goodyear and Harley-Davidson, according to the chamber's website. AmCham Shanghai does not publicly disclose its membership.

But since companies submitted responses anonymously, it is unclear to what extent high-profile U.S. automakers are affected.

Publicly, Ford said in late August that as a result of potential increases in U.S. tariffs, it has decided not to sell a small Chinese-made vehicle in America.

Earlier in August, Morgan Stanley cut its price target and earnings per share estimates on General Motors due to concerns about a slowdown in the Chinese market.

"If almost a half of American companies anticipate a strong negative impact from the next round of U.S. tariffs, then the U.S. administration will be hurting the companies it should be helping," Eric Zheng, chairman of AmCham Shanghai, said in a statement. "We support President Trump's efforts to reset U.S.-China trade relations, address long-standing inequities and level the playing field. But we can do so through means other than blanket tariffs."

U.S., China impose fresh tariffs with no trade talks in sight .
<p>The United States and China imposed fresh tariffs on each other's goods on Monday, as the world's biggest economies showed no signs of backing down from an increasing bitter trade dispute that has rattled financial markets.</p>Load Error

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