Trump China tariffs will affect Ford, GM vehicles and auto parts | Global News Avenue

Detroit – President Donald TrumpThe action to impose an additional 10% of the additional tariffs on imports from China this week will affect a few U.S. vehicles. However, these tariffs also hit auto parts, which could increase consumer vehicle prices.

In recent years, the United States has imported about $15.4 billion, importing more than $17.5 billion worth of shipping goods from China, including $9 billion to $10 billion in auto parts and accessories for vehicles and tractors, as well as other special-purpose vehicles. US International Trade Commission.

The maximum impact on the actual vehicle will be opened Ford electric motor Lincoln Nautilus and General Motors Buick imagines. These crossovers account for 83,884 of the 88,515 Chinese-made vehicles sold in the U.S. last year, or 95%.

“It’s mainly GM and Ford, which is really from a numerical perspective,” said Jeff Schuster, vice president of Automotive Research GlobalData. “Our guys are the first to get the brunt, at least starting from the entire car…but It can be muted to some extent.”

Other automakers such as Volvo, owned by China’s Geely, and their electric cars Polestarimporting fewer vehicles to the United States, they also changed their production plans to reduce the number of vehicles imported from China. In view of the Biden administration’s 100% tariff last year In this model in China.

A spokesperson for Ford and GM declined to comment on potential changes or price changes in their Chinese-made cars. Volvo and Polestar did not respond.

According to GlobalData, Chinese cars made for consumers account for only 0.6% of the approximately 16 million new cars sold in the U.S. last year, according to GlobalData. This is roughly the same as imports from the UK, Sweden and Slovakia.

Tariffs on Canada or Mexico (GlobalData reports 23.4% of U.S. sales last year) will have a greater impact on the U.S. auto market.

“While the import of vehicles is small, each US International Trade Commission imports about $1.5-2 billion per year, and China is a key part of the battery/storage supply chain (especially in the utility scale). The LFP battery used is stored),” Goldman Sachs analyst Mark Delaney said in an investment note on Sunday.

It is not clear how much the tariffs will affect electric electric batteries Slow adoption.

But many electric vehicles in the United States have significant components from China. National Highway Traffic Safety Administration. Genesis G80 EV (25%); 5 N Hyundai (50%) and Hyundai IONIQ 5 N (30%;); Kia EV9 (35%) and Niro Electric (25%); Nissan Ariya EV (40%); PHEV’s BZ4X EV (20%) and RAV4 PHEV (20%); EV ID (25%) of EV.

Mike Jackson, Executive Director of Strategy and Research MEMA original equipment supplier, The Automobile Association generally “worry” about tariffs. He said that while the additional 10% tariff on China is not as impactful as North America, it increases costs.

“This is a challenge. It represents a higher cost, and the cost will have to be born,” Jackson told CNBC on Wednesday, on the sidelines of the Chicago Federal Reserve Bank. Auto meetings in Detroit. “Obviously, China continues to contribute very valuable content. They are optimized for electronics and various aspects.”

Whether the automaker decides to increase costs to consumers, changes to purchases or other actions will remain to be seen.

Shifting costs to consumers can make sales cumbersome. According to Cox Automobile, the price of new vehicles is still rising at around $50,000 in history.

“There is no specific item from China, and the tariff says, ‘Oh no, that’s going to mess up everything … but they’ll increase the cost,” said Stephanie Brinley, chief automotive analyst at Standard & Poor’s Global. “It involves a broader issue, and it is a broader issue.”

Brynley says this price increase could impact new U.S. vehicle sales The forecast is 16.2 million vehicles.