Newspaper Reporter Gong Mengze
sudden trade friction, making US production of imported Cars has gone through twIsts and turns of the tax rate again. Following the April of thIs year the United States to suspend production of the United States imposed tariffs on imported Cars. August 23, due to changes in the situation with the United States to negotiate trade, approved by the State Council, the Customs Tariff CommIssion of the State Council decided that from 2020 at 12:01 on December 15, originating in the United States began to recover in the United States plus motor vehicles and parts levy of 25%, 5% tariff.
“Securities Daily” correspondent noted that under the current tariff rates of imported Cars until after the formal implementation of the tariff increase, imports of US-made vehicles to enter the United States tariff Will be as high as 40%. The tariff turmoil clearly not conducive to the sound development of cross-Car prices, especially for the United States, a world’s largest single market, the erratic tariff policy makes cross-Car prices become the biggest victims.
In thIs regard, the MinIstry of Commerce and director of the Institute of circulation and consumption Dong and said the United States Is the world’s Auto giants battleground for American Car to levy high tariffs on the country Car prices Is a huge crIsIs. As one of the important pillars of the US economy, the Automotive industry Will lose competitiveness or the entire US manufacturing contraction.
high tariffs Will soon be implemented
US production tariffs on imported Cars or liters to 40%
move against the United States announced on imports from U.S. of about $ 300 billion of goods imposed on August 15 a 10% tariff. August 23, the Customs Tariff CommIssion of the State Council Issued “on the originating recovery tariffs on US Auto and parts of the announcement,” decided that from 2020 at 12:01 on December 15, originating in the United States motor vehicles and parts to restore tariffs.
Under the current tariff rates of imported Cars, the formal implementation of the tariff increase, imports of US-made vehicles to enter the United States tariff Will be as high as 40%.
In fact, thIs Is the country since 2019 to improve the US NIssan Motor tariffs secondtax rate. The first was from July 6, 2019, the United States decided to 34 billion US dollars worth of US goods tariffs, the United States immediately implement counter-attack, the American-tariff rate on imported Cars increased from 15-40%. Until December 1 the same year, the tariff has been friction temporary relief: The two sides met in Argentina, decided to stop the upgrade tariffs and other trade restrictions, after the United States announced the suspension of US production Car tariffs from January 1 2020 3 months.
April 1, the United States continued the suspension of production imposed tariffs on imported Cars to the US practice, and did not dIsclose the specific time limit. However, due to revert to the United States imposed tariffs on US goods in June, plans to increase its tariffs on US exports to the US of 200 billion US dollars worth of goods from 10% to 25%, which also led the United States to counter the latest program – the American-recovery tariffs on imported Cars to levy 25%.
who have worked for the Ford Motor told Reporters that the Chinese side take measures to levy tariffs on US-produced vehicles and parts recovery, Is to deal with the US unilateralIsm, trade protectionIsm was forced to move. “At present, most models of the core components and accessories are involved in Europe, the United States, Japan and other countries and manufacturers. In order to avoid damage to their own interests, the countries concerned Will put pressure on the US transfer tax.”
US Auto sector collective fall
experts said the US-brand Cars domestic share no guarantee
by the Chinese tariffs News, August 24, US stocks opened lower, the Nasdaq Composite fell 0.55%, the S & P 500 index fell 0.46%, oil stocks, Auto stocks fell collective, confirmed the market’s fears. The Auto sector, Tesla, General Motors, Ford dIsk before it fell more than 2 percent. 24 closing data showed, Ford shares fell 2.54%, Tesla shares fell up to 4.57%.
“Securities Daily” Reporters access to the data found in the United States vehicle exports to U.S., the US production of German Cars as high as 150,000, more than the number actually Lincoln, Tesla other US brandsCar. ThIs also means that once the Car production from the US to levy punitive tariffs, or Will be affected by the largest German brand.
Some industry experts told Reporters that the State of origin and the country with the brand version Is a different concept, as long as the place of origin in the United States on the certificate of imported goods models are facing tax increases. American brands of imported Cars and imported US version of the Car, not necessarily in USA; corresponding to other countries and the brand version of the Car, it could be US production. The former requires taxation, the latter does not.
Reporters learned that the German brand Mercedes-Benz’s GLE and GLS, in addition to top 63AMG models produced in Germany, regardless of the remaining models, EU or the Middle East edition, all from the Mercedes-Benz Tuscaloosa plant in the United States Tuszka, it Will be involved in tax increases.
Mercedes-Benz, BMW brand compared to a wider ramifications. Including the BMW X5, X6, and top X5M and X6M all production in the United States of South Carolina Spartanburg plant Will be stricken tax increases; while Japanese brands, in addition to the US market, the largest-selling imported MPV Seine, whole size Sequoia SUV and two pickup trucks and Taku Ma Will be included in the tax lIst.
In thIs regard, a senior Auto analyst Zhong Shi “Securities Daily” Reporters, said the Automobile industry chain Is the longest of all industries, involving most countries, the manufacturing sector Is also the largest impact on the of. US Big Three Auto companies have settled in our investment in factories, the two sides in fact a community of interests, trade war Will not easily hurt either exIsting Sino-US joint venture in the Automobile. “But would not rule out a small amount of imports from the United States Auto sales have a huge impact.
It should be noted that, since last year, tariffs frequently” face “makes the prices of imported Cars and downs, resulting in many domestic consumers hold out, thereby affecting the overall import Car market. statIstics show that by the Sino-US tariff fluctuations, in 2019 U.S. imported Car market downturn, annual Car imports fell 8.8% delivered to the customer by the dealer of imported Car sales also fell 5.6%.
in thIs context, the amount of parallel imported Cars also appeared in the first decline in five years. 2019, parallel importsAutomotive imports fell to 139,700, a drop of 18.6% year on year, far more than the decline in the overall performance of the imported Car market, accounting for total imports also fell 1.6%.
after it comes to tariff adjustments for the effects of the purchase price, the industry generally believe that the role of tariffs floating linkage, while VAT and consumption tax Will lead both rose. Once the tariffs, US production Car Will be priced significantly improved market position Will quickly marginalized. According to the American Automobile Industry Association released the latest data show that the first five months of 2020, American Car brand’s market share fell from 10.9% a year ago to 9.6%.
(edited Qiaochuan Chuan)