American cars will rise in price
American cars will rise in price
On September 24, the United States will introduce a 10% duty on a certain group of goods from China, up to 25% it will increase from January 1, 2019. Engines, automotive components, engines for electric cars and lithium-ion batteries for cars also fall into this group of products. It is obvious that the new customs duties proposed by the Trump administration for Chinese products with a total value of $ 200 billion will “come around” with an increase in car prices.
The response of the Celestial Empire was symmetrical - the Chinese authorities imposed duties on goods from the United States. These include agricultural machinery. What the US president threatened with the introduction of new duties in the amount of $ 267 billion if the Chinese side takes retaliatory measures.
Most likely, the American auto industry will feel the influence of new tariffs at the beginning of 2019. Automakers will look for solutions to the conflict. For example, as one of the options is to find new suppliers, but this process is very long. It is also possible that enterprising Chinese will transfer part of their factories outside the Chinese state to neighboring countries - this will help bypass duties and not lose profits.