United States slams harmful China trade policies, threatens auto tariffs

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US calls China’s tariffs on American autos ‘egregious’ | Idaho Statesman

On Asian equity markets Hong Kong added 0.6 percent, while Shanghai gained 0.1 percent, with dealers there poring over data showing Chinese manufacturing stalled in November as the effects of Trump's multi-billion-dollar tariffs begin to bite.

"If a meaningful deal is reached between OPEC and Russian Federation to tackle glut problems, we can probably expect a meaningful rebound in energy prices", said Margaret Yan Yang, market analyst with CMC Markets Singapore.

The United States now has a 2.5 percent tariff on imported cars and sport utility vehicles from markets outside North America and South Korea.

GM did not directly comment on Trump's tweets, but reiterated that it was committed to investing in the United States. The president is angry over the announcement Monday that GM plans to close plants and eliminate 14,000 jobs in North America.

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But U.S. officials including Kudlow have also repeatedly said in recent weeks that any agreement to fully resolve trade differences between the U.S. and China would likely take months of hard negotiations to reach.

"The President has great power on this issue - Because of the G.M. event, it is being studied now!"

The country's policies on auto tariffs are "especially egregious", taxing United States cars at more than double the rate it charges other countries.

Trump has also harshly criticized GM for building cars in China.

In a statement Wednesday, U.S. Trade Rep. Robert Lighthizer complained that China slaps 40 percent tariffs on U.S. auto imports - more than the 15 percent tariffs it imposes on other countries and the 27.5 percent U.S. tax on Chinese auto imports. GM makes the Buick Envision in China, but so far this year has shipped fewer than 25,000 of the SUVs to the United States.

Additional tariffs on Chinese-made vehicle and parts would have a limited impact, said Kristin Dziczek, an economist at the Center for Automotive Research.

"As the President has repeatedly noted, China's aggressive, State-directed industrial policies are causing severe harm to USA workers and manufacturers", Lighthizer said. She noted only a small number of vehicles were exported from China to the United States annually.

Automotive duties on both sides have been increased by tit-for-tat tariffs.

The White House in recent weeks has reached out to the chief executives of German automakers including Daimler AG, BMW AG and Volkswagen AG about meeting to discuss the status of auto trade.

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