A Win on China Car Tariffs Is Irrelevant for Automakers
Trump’s levies on steel and aluminum are a far bigger challenge for U.S. auto manufacturers. Don’t expect those to go away.
Who needs imports when you can manufacture there?
Photographer: Goh Chai Hin/AFP/Getty Images
The “will they, won’t they” chatter over China’s car tariffs misses where the real action is for automakers.
Confusion has abounded over the deal struck between U.S. President Donald Trump and his Chinese counterpart Xi Jinping. Trump tweeted that China was reducing and removing its 40 percent tariffs on U.S. car imports – two very different things. Car stocks rallied on the news Monday, only to give up gains the next day after Larry Kudlow, Trump’s top economic adviser, backtracked on the president’s assertion. Treasury Secretary Steven Mnuchin said China has agreed to eliminate tariffs, without giving specifics.