White House Acknowledges There’s No Deal Yet To Roll Back Chinese Auto Tariffs

Following a series of rather baffling announcements, the White House now acknowledges that there’s no agreement yet with the Chinese government to roll back its tariffs on US-made vehicles, CNBC reports.

This follows President Trump’s tweet on December 3, saying that “China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%.”

A day later, President Trump said on his Twitter that “the negotiations with China have already started” and that the deal will probably happen.

“It doesn’t seem like anything was actually agreed to at the dinner and White House officials are contorting themselves into pretzels to reconcile Trump’s tweets (which seem if not completely fabricated then grossly exaggerated) with reality,” said an investor note issued by JPMorgan.

USA and China have agreed to a 90-day truce in order to negotiate a new trade deal, without the latter committing to anything.

China has imposed a 40 percent tariff on US-made vehicles as a retaliation measure to Trump’s new duties on Chinese goods. The US auto industry, which shipped 250,000 vehicles to China last year, took a sharp hit from the Chinese tariffs, prompting automakers to look for alternatives.

BMW, which is the largest exporter of US-made vehicles, is reportedly considering building more SUVs in China in order to offset the cost of tariffs. The German carmaker’s initial plan was to boost production output in its Spartanburg factory with the launch of the new X7.

Volvo had also earmarked around half of the vehicles built in its new Charleston factory for export, with many of them bound for China. But with the tariffs now at 40 percent, their plan will change.

“We … thought Charleston could build cars for China,” Volvo’s global CEO Hakan Samuelsson told USA Today last week. “That will not work,” Samuelsson added. Volvo will consider shifting some production from Charleston to China, impacting production levels and hiring at the plant, Volvo’s CEO said.

more photos...
  • Mr. EP9

    So, how is everyone’s day?

    • KenjiK

      We winning! Trust me!

  • THE GREAT NEGOTIATOR.

  • carlbolt

    That was in Trump’s dreams.

  • Tostik

    “It ain’t over til it’s over” ~Yogi Berra

  • javier

    orange julius and crew are gangsters in the real sense, make fake statements and move the stock market around violently and steal oodles of money, then do it again next week

Maserati Quattroporte L’Ultimo Concept Is Italian Luxury At Its Finest

This futuristic Maserati Quattroporte render stays (mosty) true to the current model’s design language.

Lexus Safety System+ To Be Standard Equipment On All 2020 Models

The safety suite includes automatic high beam headlights, adaptive cruise control and a a pre-collision system.

Porsche North America Boss Says EVs Will Soon Become Commonplace

Porsche is confident it can easily out-sell its first year of production of the upcoming Taycan .

2020 MINI Electric Teased, Debuts July 9th

MINI is going electric, but the upcoming Cooper SE is only expected to have a range of approximately 114 miles.

Korean Brands Dominate Initial Quality Study, But Porsche’s 911 Comes Out On Top

Genesis had the highest initial quality and they were closely followed by Kia and Hyundai.

Ford Says Explorer ST Customers Aren’t Interested In A V8

The hottest Explorer on sale is powered by an EcoBoost 3.0-liter V6 with 400 HP.

SUV And Tow Truck Decide To Go Their Separate Ways

After the SUV fell off, the tow truck began rolling forward towards a parked van.

2020 Cadillac XT5 Facelift Bows In China With Minor Updates

The 2020 Cadillac XT5 has a new grille and an updated infotainment system with a rotary controller.

Spiderman Goes Electric, Takes A Spin In The Audi E-tron GT

The latest Spiderman flick will feature cameos by the Audi A7, Q8 and e-tron.

Acura To Tackle Pikes Peak With A 400 HP MDX Sport Hybrid

Acura is also bringing along four other models to the hillclimb, including two NSXs.