Trump Chinese tariffs will affect Ford, GM vehicles and auto parts

Detroit – President Donald TrumpThe movement to impose 10% of additional import tariffs this week affects a small number of American vehicles. But those rates are also reaching car parts, which could increase the prices of already high vehicles for consumers.

The United States in recent years has imported approximately $ 15.4 billion to more than $ 17.5 billion in Chinese transport products, including $ 9 billion to $ 10 billion in car car parts and accessories for vehicles and tractors, among other vehicles of special purpose, according to the International Trade Commission of the United States.

The greatest impact on real vehicles will be on Ford Motor’s Lincoln Nautilus and General Motors’ Buick Image. These crossovers represented 83,884, or 95%, of the 88,515 vehicles made by China that were sold in the United States last year.

“It is mainly GM and Ford who are really affected from the point of view of volume,” said Jeff Schuster, vice president of automotive research in Globaldata. “Our domestic boys are those who take the worst part of this, at least for complete vehicles … but you can silence to some extent.”

Other automobile manufacturers such as Volvo, which is owned by Geely and her electric vehicle. PolestarI am much less vehicles to the US. UU. Production plans have also changed to reduce the amount of vehicles that are imported from China. That is especially true for electric vehicles, given the Biden administration 100% rate last year in such models of China.

Ford and GM spokesmen declined to comment on possible changes in the production or prices of their vehicles made by China. Volvo and Polestar did not respond.

Vehicles made by China for consumers only represented 0.6% of the approximately 16 million new vehicles sold last year in the US, according to Globaldata. That is almost the same as imports from the United Kingdom, Sweden and Slovakia.

Tariffs on Canada or Mexico, which Globaldata reports represented 23.4% of US sales last year, would have a much greater impact on the US car market.

“While vehicle imports are minimal from China, car-pieces are approximately ~ $ 15-20 billion per year according to the United States International Trade Commission, and China is a key part of the chain of the chain of battery/storage supply (especially LFP batteries used in the Public Services Scale Energy Storage), “said Goldman Sachs analyst Mark Delaney, Sunday in an investment note.

It is not clear how much impact could have impact rates on batteries or raw materials for electric vehicles, which are experiencing a slower than expected.

But many electrified vehicles in the US 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 of EV (25%).

Mike Jackson, Executive Director of Strategy and Research for Original Mema Team suppliers, He said that the automatic association is “worried” for tariffs in general. He said that while the additional 10% rate on China is not as shocking as that of North America, it increases costs.

“It is a challenge. It represents a higher cost, and that cost will have to be born,” Jackson told CNBC on Wednesday outside the Bank of the Federal Reserve of Chicago. Detroit Cars Conference. “Clearly, China continues to contribute very valuable content. They have optimized for electronics and a wide range of aspects.”

It has not yet been seen if car manufacturers decide to approve increases in consumer costs, increase in change or take other actions.

Passing consumers costs could be problematic for sales. The new vehicle prices remain historically high in around $ 50,000, according to COX Automotive.

“There is no specific element from China that is under this rate that says: ‘Oh, no, this is what is going to ruin everything’ … but the costs will increase,” said Stephanie Brinley, main automotive analyst at Global S&P Mobility. “It is played in a broader theme, a broader problem with prices.”

Brinley said such price increases could affect the new sales of US vehicles, that S&P Global Mobility before any rate predicted like 16.2 million vehicles.