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The auto industry offers a good case in point. President Trump has repeatedly said that forcing China to lower its tariffs on imported U.S. cars will help the U.S. auto industry. As he correctly points out, there is a 2.5 per cent tariff on cars shipped from China to the U.S. and a 25 per cent tariff on cars shipped from the U.S. to China. Trump claims that lowering the Chinese tariff would allow U.S. automakers to export more cars to China and boost auto employment in the USA.
However, GM, Ford and other automakers have already established joint ventures with Chinese firms and the great majority of the cars they sell in China are made in China. This allows them to avoid the tariff. China is GM’s biggest market and has been for six years straight. The company has 10 joint ventures and two wholly owned foreign enterprises as well as more than 58,000 employees in China. It sells approximately 4 million cars a year in China, almost all made in China.
The two largest automobile exporters from the U.S. to China are actually German. BMW shipped 106,971 vehicles from the U.S. to China in 2017; Mercedes sent 71,198. Ford was the leading U.S. owned auto exporter and in third place with total yearly exports of 45,145 vehicles. Fiat Chrysler was fourth with 16,545.
full: https://socialistproject.ca/2018/04/trade-tensions-between-usa-and-china/
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