For the moment, the new Levy target models are built in the United States with engines over 2.5 liters of capacity
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by Brad Anderson
February 13, 2025 at 12:01 p.m.
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- Last year, around $ 3.1 billion in American vehicles were exported to China.
- The new 10% additional price will hit vehicles with engines greater than 2.5 liters.
- Brands such as Ford, GM, Mercedes-Benz and BMW will be affected by prices.
Shortly after US President Donald Trump implemented a 10% swing against Chinese products, China has struck vehicles imported from the United States with an additional 10% rate. The new price comes when the two parties have not reached the conditions and marks a significant escalation in what could quickly become a full -fledged trade war.
On Monday, the new Chinese sample at 10% from vehicles with engines more than 2.5 liters came into force, in addition to the rate of 15% existing. While relatively few vehicles made in the United States with engines exceeding 2.5 liters are found on Chinese banks, customs data reveal about $ 3.1 billion in these vehicles were exported from the United States ‘last year. Several brands will feel the pinch, including Ford and General Motors.
Read: Ford and GM to feel the weight of Trump’s prices, but they are not alone
Since 2022, GM has exported models such as GMC Yukon and Chevrolet Tahoe to China via its Premium Import Service during Guild. These prices are at a particularly bad time for GM as in 2024, because it had more than $ 5 billion in charges and depreciations linked to its Chinese activities.
Mercedes-Benz and BMW will also be affected by prices. The two brands produce several models of SUV in the United States and sell them in China. Michael Dean, Bloomberg Intelligence analyst, notes that Mercedes is more exposed to tax than BMW, because the automaker has been built the X5 in China since 2022 thanks to the BMW Brilliance co -entreprise. Dean expects the price to potentially reduce the Mercedes-Benz Ebit by 1.5% this year.
China has announced more prices against the United States in last week, including an additional 10% on American liquefied natural gas and a 15% burden on American crude oil. China has also reached agricultural machinery with a tariff of 10% and imposed export controls on 25 rare metals. Many of these metals play a crucial role in electrical products and military equipment, including tungsten, which is used in the aerospace industry.
President Trump plans to have a call with Chinese President Xi Jinping soon. This could lead to an agreement between countries, or it can still exacerbate things.
