The president did not indicate that the prices taken from China could be interrupted like those against Canada and Mexico
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by Brad Anderson
February 7, 2025 at 09:23
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- Lincoln Nautilus and Buick Invision are built in China and sent to the United States.
- About $ 15 to $ 20 billion in Chinese manufacturing automobile parts are exported to America.
- China has a particularly strong understanding on the electric vehicle batteries market.
The prices have made a lot of titles lately, President Donald Trump imposing first, then stopping, the rights to imports from Mexico and Canada. But the latest round, a new 10% price on Chinese imports, is also about to shake the American automotive industry.
Although relatively few new vehicles are sent directly from China to American dealers, the largest concern is the flood of Chinese manufacturing parts that keep the industry on the move.
Read: car manufacturers breathe more easily because Trump freezes prices for 30 days
The two car manufacturers that will feel the immediate negative effects of these 10% prices are General Motors and Ford, two of the most important American companies. Lincoln built the Nautilus in China and GM also built the Buick Envision in China. Last year, 83,884 Nautilus and Invision models were sold in the United States, which represents 95% of all Chinese construction cars sold in the United States.
Volvo and Polestar also in the reticle
Volvo and Polestar, both detainees by China Geely, also manufacture vehicles in China for the American market. So far, none of these brands has confirmed if the new prices will force them to adjust prices or change production, but it is sure to assume that they will not absorb the cost without going at least to buyers.
“It is mainly GM and Ford who are really struck from the point of view of the volume,” said Jeff Schuster, vice-president of GlobalData automobile research, Jeff Schuster CNBC . “Our domestic guys are those who gain weight, at least for complete vehicles … but it can be suffocated to a certain extent.”
America needs Chinese car parts
Beyond whole vehicles, the real economic punch comes from prices on automotive parts of Chinese manufacturing. According to CNBC, Goldman Sachs analyst Mark Delaney warns that these prices could have a much wider impact.
“While imports of vehicles are minimal from China, imports of automotive parts are around 15-20 billion dollars per year by the American Commerce Commerce and China is a key element in the chain of Battery / storage supply (especially LFP batteries used in energy on the scale of public storage services), “he said.
Many electrified vehicles sold in the United States count strongly on components of Chinese origin. The data from the National Highway Traffic Safety Administration underline how some models depend on China.
The Hyundai Kona EV leads the pack, with 50%of its components from China, followed by the Nissan Ariya (40%), Hyundai Ioniq 5 N (30%), Kia EV9 (35%) and Kia Niro Electric (25 %). Other models with significant Chinese content include Genesis G80 EV (25%), Volkswagen ID Buzz EV (25%) and BZ4X EV from Toyota and Rav4 Phev, each at 20%.
With as many crucial components linked to Chinese supply chains, these prices could send training effects throughout the automotive industry, reaching prices, production and supply chains in a way that consumers and car manufacturers will not be able to ignore.
