Trump’s China Tariff Increase Affects Ford and Gm Vehicles, Billions of Dollars in Auto Parts

Detroit – President Donald Trump‘S move to impose 10% additional tariffs on important from China this week affects a small number of us vehicles. But thats Tariffs are also Hitting Auto Parts, Which could increase alredy heightened vehicle pris for consuce for consuce.

The Us in Recent Years Has Imported Roghly $ 15.4 billion to more than $ 17.5 billion of transportation goods from china, including $ 9 billion to $ 10 billion in auto parts and accessories forms ONG Other Special Purpose Vehicles, According to the Us International Trade Commission.

The largest impact on actual vehicles will be on on Ford Motor’s Lincoln Naualus and General Motors’ Buick Envision. Thos Crossovers Accounted for 83,884, or 95%, of the 88,515 china-made vehicles that were sold in the us last year.

“It’s mainly gm and ford that are really hit from a volume standpoint,” said jeff schuster, globaldata vice president of automotive research. “Our domestic guys are the only taking the brunt of this, at least from for full vehicles… but it can be mouted to some expert.”

Other Carmakers Such Volvo, which is owned by china’s geely and its electric vehicle spin-off PolestarImport far fewer vehicles to the us they’ve also changed production plans to reduce the number of vehicles of vehicles being with important from China. That’s especially true for evs, giving the biden administration’s 100% tariff last year on such models from China.

Spokespeople for ford and gm declined to comment on potential changes to production or prices for their china-made vehicles. Volvo and Polestar did not respond.

China-Made Vehicles for Consures only represented 0.6% of the roughly 16 million new vehicles sold last year in the US, according to globaldata. That’s about the same as important from the united Kingdom, Sweden and Slovakia.

Tariffs on Canada or Mexico – which globaldata reports account for 23.4% of us sales last year – would have a far a far greater impact on the american car market.

“While Vehicle Imports Are Minimal From China, Auto Parts Imports are About ~ $ 15-20 bn per year per the US internet trade commission, and china is a key part of the battery LFP batteries used in Utility Scale Energy Storage), “Goldman Sachs Analyst mark delaney said Sunday in an investment note.

IT’s Unclear How Much of an impact tariffs could have on batteries or raw materials for evs, which are experienceing a Slower-That-Expected Adoption,

But many electrified vehicles in the us feature a notable amount of components from China, according to data from the National Highway Traffic Safety Administration. They include the genesis g80 ev (25%); Hyundai Kona Ev (50%) and Hyundai Ioniq 5 N (30%;); Kia EV9 (35%) and Niro Electric (25%); Nissan Ariya Ev (40%); Toyota Bz4x Ev (20%) and Rav4 PHEV (20%); And Volkswagen Id Buzz Ev (25%).

Mike Jackson, Executive Director of Strategy and Research for Mema Original Equipment Suppliers, Said the Auto Association is “Concerned” About Tarifs in General. He said while the 10% additional tariff on China isn’s is impactful as ons in north america, it increases costs.

“It’s a challenge. It represents a higher cost, and that cost is going to have to be born,” Jackson told cnbc wedding on the sidelines of the federal resereve bank of chicago’s love Auto conference in detroit“Clearly China Continues to Contribute very valuable content.

Whather Automakers Decide to Pass Increases in Costs on to Consures, Change Sourcing or Take Other Actions is Yet to be Seen.

Passing the costs New Vehicle Price Remain Historically Elevated At Around $ 50,000, According to Cox Automotive.

“There’s not a specific item comment from that’s under this tarif that say, ‘Oh no, this is the thing that is going to tell mes everything up’… Ive analyst at s & p global Mobility. “It plays into a broader issue, a broader problem with pricing.”

Brinley Said Such Price Increases Could IMPACT New Us Vehicle Sales, Why S & P Global Mobility Prior to Any Tariffs Forecasted to be 16.2 million vehicles.