How much does the tariff war between China and the United States affect China s auto industry?

The products we export are greatly affected by the appreciation of the US dollar! Its appreciation is not only that Chinese products cannot be sold! Importers from other countries are afraid to import large quantities of products from China!

Most of them are keeping a wait-and-see attitude! I don't know when the boring tariffs will end.

1. The industry as a whole is not greatly affected by the war, and some parts companies may be affected

China's import and export of auto commodities is generally in a relatively stable state, and its dependence on the United States is limited. The driving force for the development of China's automobile market is mainly in domestic demand, which is not greatly affected by import and export.

2. The export parts are imported into the whole vehicle, and the import and export of automobiles in China is balanced as a whole.

In 2017, the total import and export volume of China's automobile commodities reached 171.7 billion US dollars, a year-on-year growth rate of 10%, and the import and export of automobile commodities developed steadily. On the whole, the performance of imports and exports is relatively balanced, with a small surplus and deficit. From 2015 to 2017, there were $2.7 billion surpluses, $3.1 billion deficits, and $4.8 billion deficits, respectively.

Specific to the vehicle ** and parts ** is significantly different, China's imported products are mainly concentrated in the vehicle supplemented by a small number of parts, in the past three years the vehicle import and export deficit is more than 30 billion US dollars; China's export products are mainly auto parts, and the surplus of import and export of auto parts in the past three years is between 26 billion and 30 billion US dollars.

3. The total amount of automobiles in China and the United States is limited, and the export of driving system parts accounts for a significant proportion.

The characteristics of automobiles between China and the United States are the same as those of China's foreign automobiles. China's main exports to the United States are auto parts, of which the travel system (wheels, tires) accounts for more than 50%. This segment** has a surplus of about $15 billion a year.

China mainly imports vehicles from the United States, supplemented by a small number of transmission system parts. This segment** has an annual deficit of about $12 billion. Overall, the scale of Chinese and American automobiles is limited, about $30 billion per year; The surplus and deficit are small, about $3 billion a year, and are decreasing year by year.

China's recent pledge to lower tariffs on U.S. cars sounds like good news for U.S. workers and companies, but in fact it may not be U.S. automakers that will benefit more than BMW and Mercedes-Benz.

U.S. auto exports to China have soared, despite the 25 percent tariff in place. According to the US Census Bureau, the combined value of new and used U.S. exports to China in 2017 was $10.5 billion, up from $1.1 billion in 2008.

Lower tariffs mean that the number will continue to grow, which is good news for domestic U.S. auto companies (both U.S. automakers and those from other countries that build factories in the U.S., such as Mercedes-Benz) and American workers.

However, when you calm down and look at the reality, it doesn't seem so optimistic.

First, Trump has mentioned on numerous occasions that the U.S. tariffs on Chinese car imports only. His point is, in short, that the United States is being bullied. From a tariff perspective, that's true, but this unfair tariff gap hasn't stopped U.S. automakers from selling cars to China.

According to the US Census Bureau, the combined value of new and used U.S. exports to China in 2017 was $1.6 billion, about one-sixth of U.S. exports to China.

In China, most U.S. automakers, such as Ford and General Motors, have established joint ventures and localized production. This means that the majority of car companies' profits are not directly related to import tariffs, and this will not effectively help "bring manufacturing back to the United States" or "help American workers create more jobs".

According to the US Census Bureau, from January to October 2017, Ford sold 10,000 vehicles in China, but imported only 2 percent of the total.

Second, the biggest benefit of this tariff adjustment is actually from German automakers that build factories in the United States. To put it bluntly, BMW and Mercedes-Benz are the biggest winners.

Statistics show that BMW's plant in Spartanburg, South Carolina, is currently the largest exporter of automobiles in the United States in terms of the value of its vehicles exported to China. Although it is unclear how many Spartanburg cars were sold to China. BMW also did not respond to this data.

A spokesman for Mercedes, which also has a factory in Vance, Alabama, said that most of the SUVs produced by Mercedes in Alabama are exported around the world, but they are not obligated to provide data on exports to China.

China lowered the tariffs on cars, not saying that it wanted to reduce the tariffs on American cars, but the tariffs on American cars were 25 percent, and the reduction of tariffs was for the United States.

On April 4, China issued the "Announcement of the Customs Tariff Commission on Imposing Tariffs on Some Imported Goods Originating in the United States", which included American-made cars in the scope of tax increases, and the automotive industry has since been involved in the center of the war storm.

For automobile products, the scope of the tariffs has covered passenger cars (including cars) and off-road vehicles (including SUVs) of various displacements, and according to the powertrain, including fuel vehicles, electric vehicles, and even parts and components have not been spared. From the list of specific models, including SUVs with a displacement of more than 4L, sedans with less than 9 seats within 4L (including MPVs), diesel SUVs with a displacement of up to 3L, pure electric vehicles, plug-in hybrid models, and gasoline trucks with a displacement of less than 5 tons, including the most mainstream imported models of American brands, such as Tesla, Jeep, Ford and other brands.

The tariffs on imported cars from the U.S. do not involve models that are currently produced in China by U.S. joint ventures, but are imported models produced in the U.S. At present, the models produced in the United States include not only local American brands, but also some car brands from other countries. For example, BMW's many imported SUV models, Mercedes-Benz's many imported SUV models, Nissan, Infiniti, Acura, etc., it can be said that in addition to most American brands, the German brands with the most lying guns are the ones.

It will damage the U.S. economy, destroy the U.S. chain, and damage U.S. relations with allies, which in turn will cause a global war.

John Pozzella, CEO of the Global Automobile Manufacturers Association of the United States, said that Trump's move will undermine the healthy development of the American auto industry and will also provoke a counterattack from automakers around the world, which is bad news for American car consumers.

I really can't feel ...... at the moment

It did not hit Japanese car sales as expected.

There was also no expected increase in the sales of cars in the United States.

Japanese cars have swept North America.

The cost of cars increases.

German cars were not sold in North America.

The tariff on cars in country X has dropped sharply, which is good for the people, and it is also good for Japanese cars, and it is reasonable for Japanese cars to increase sales in country X, but the market for Japanese cars in country X is still too small......

However, Japanese car companies and executives are worried, should they build the factory in the first place, and how to choose the best price? Or lower margins? How do you build a new production line???

There are many problems that are enough for them to worry ......But it's not necessarily a bad thing......Don't forget the ...... "born in sorrow, die in peace".

Let's wait for the financial report of Q2 2018 ......

It seems that American cars have been hit much harder than Japanese cars, and it is impossible to understand ???

There are only two cars that sell well in the United States, one is Japan, the largest one, and the other is the United States itself, ......This move is obviously aimed at Japan, as for what country x, European??? Excuse me, do they have sales in North America???

The U.S. is the largest sales market for Japanese automobiles, but that's all, there are also ...... in Central America, South America, the Middle East, Southeast Asia, India, and Africa (mainly Japanese used cars, accounting for about 95%)Although the sales volume in country X and Europe is not high, there is also a certain sales ......

The U.S. imposes a 25 percent tariff on imported cars, and foreign automakers have several options.

First of all, they can choose to silently bear the cost, and then continue to maintain the original ** sales car. But this will also lead to problems such as the slow development of technology in the entire automotive industry, and of course the probability of automakers making this choice is not too great.

The second possible scenario is that the car company may pass on the additional costs to the customer. It also means that if an American goes to the local Mercedes Ben. If this happens, it could lead to a 10% reduction in the total number of vehicle deliveries per year in the United States, according to research firm LMC Automotive.

Third, some foreign automakers may be forced to withdraw from the U.S. market altogether. This is particularly worrying for smaller or less mature foreign automakers. However, if these automakers also have production plants in the United States, the impact of tariffs will be relatively small.

The U.S. retaliated by imposing tariffs on light trucks imported from France and Germany.25 percent in response to French and German tariffs on chicken imports from the U.S., but truckers with original equipment manufacturing plants in the U.S. have successfully avoided the impact of the tariffs.

At present, the global automotive industry is in an era of change, and new energy and intelligence have become the future development direction of the automotive industry. Industry insiders believe that if the United States imposes tariffs on automobiles becomes a reality, it will increase the production costs of international automakers and reduce the profits of auto companies, which will have an adverse impact on the innovation of the global auto industry.

Volkswagen executive Volvokeken said that the U.S. tariffs on steel and aluminum products have increased the company's operating costs, and if the U.S. imposes tariffs on imported cars, the company may have to reconsider its decision to produce battery electric vehicles in Tennessee.

Volvo had proposed in early June to significantly increase the proportion of sales of pure electric vehicles and autonomous vehicles over the next decade, but Samuelson said that the U.S. tariffs on imported cars and parts would reduce the efficiency of the entire system, reduce the company's money on product research and development and improve quality, and ultimately make consumers have to accept low-quality products.

According to reports, the European Commission will meet next week to assess the threat of U.S. auto tariffs, and a report prepared for the meeting mentioned that at this important moment when it should be committed to the development of autonomous driving and electric vehicles, the U.S. threat to impose tariffs on imported cars will challenge the global car production model, and such protectionist measures will not help U.S. automakers.

At present, both traditional car-making forces and new Internet car-making forces will be intelligently connected.

Tariffs have increased, and ** has naturally risen.

To be honest, it doesn't have much impact, most of the Chinese consumers should be China's influence on the United States.

Once the car station starts a war, China will not have technical support from the United States, and the United States will not have Made in China.

In fact, it is fortunate that the intensity of foreign imports has been reduced.

China's auto parts exports are likely to suffer.

Consumers' purchasing power for cars will decline for a long time to come.

To China? The Chinese don't buy them, it's bloody for them.

It will have a certain impact on the automotive industry in the domestic market.