Trump Denies GM’s Request For Tariff Relief On China-Imported Buick Envision

The Trump administration has denied a request from General Motors for a tariff exemption for its Buick Envision crossover.

The Envision is manufactured in China, and GM requested an exemption to a 25 per cent tariff imposed on it (and all vehicles imported from the People’s Republic) nearly a year ago.

However, a May 29 letter from the U.S. Trade Representative’s office denied the request on that grounds that it concerned “a product strategically important or related to ‘Made in China 2025’ or other Chinese industrial programs.”

Auto News reports that the car manufacturer is aware of the denial and has stated it has been paying the tariff since last July. Prices for Envision models sold in the United States have not been increased, so that means that The General has been absorbing the cost itself.

Also Read: We Got Our Hands On Buick’s New 2017 Envision; What Do You Want To Know?

In its request, Buick asserted that Envision sales in the United States would generate funds “to invest in our U.S. manufacturing facilities and to develop the next generation of automotive technology in the United States.” Building it in the States was never an option, simply because the vast majority of them are sold in China.

Aware that its petition might be denied, GM shipped in a six-month supply of Envisions in the first half of last year at a 2.5 per cent tariff rate before the 25 per cent tariffs were implemented.

General Motors isn’t the only car manufacturer to have a request to avoid tariffs denied; last month, Volvo’s similar petition for the Chinese-assembled XC60 was likewise rejected by the U.S. Trade Representative’s Office.

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  • Stephen G

    25% tax that GM has been absorbing for last 12 months…speaks to tremendous profits made by importers from China.

  • Harry_Wild

    GM has imported 1/4 of their models into the U.S. – Blazer, Equinox, Silverado 1500, Trax, Sierra 1500, Terrain. GM move the Blazer to Mexico too!

    • Six_Tymes

      thats the point… he “prince of orange” who is not orange anymore is trying to reverse the days of obama, who welcomed all the US production jobs to leave the US.

      • Stephen G

        You’re say the Obama Administration forced big business to take their manufacturing to other countries? Are you nuts? Big business took manufacturing overseas so they could make more money. Why do you think the Great Pumpkin built his hotels with Chinese steel instead of American…same reason. They didn’t have to do it, they’re just greedy.

  • Paul

    Good. I’m glad they got denied. Now go figure it out GM, bet this gets cancelled next.

  • I’LL HAVE TO AGREE WITH THE NUMB NUTS ON THIS ONE. IF THEY SELL A VAST MAJORITY IN CHINA FINE, DON’T OFFER IT HERE.
    I’S AMAZING HOW NO ONE IS EVER HAPPY WITH HOW MUCH MONEY THEY MAKE, IT ALWAYS HAS TO BE MORE, NO MATTER WHO GETS SCREWED.

  • man

    How does this affect Buick dealers with sales and how does the tariff on auto parts affect service at GM dealers ? That affects local working people.

  • Alex Stoyanov

    Maybe BMW should move their biggest factory out of the U.S. based on your logic as well? I believe the last number of employees there was 9,000. What about Honda, Toyota, Mercedes and everybody else who builds cars here for the U.S. market and for export? I wonder how that would work out for all the American employees currently employed there.

    • DO THEY EXPORT BACK TO JAPAN AND GERMANY? IF BUICK WANTS TO BUILD IN CHINA FOR SALE IN CHINA THAT MAKES SENSE BUT TO SELL THEM HERE IN THEIR HOME MARKET IS WHAT RUBS PEOPLE THE WRONG WAY.

      • Alex Stoyanov

        All BMW X3, X4, X5, X6 and X7 are made in the U.S.A. and then exported allover the world – including China, Japan and Germany. And if you read the article it says that GM builds this particular model in China because most of them are sold in China. It makes no sense financially to build some in China and some Here. It would be way more expensive to set a bunch of factories to produce a bunch of different models for only countries the factories are located in. You don’t see Germans complaining about driving U.S. built BMW X5s. They are smart enough to realize that Ford also builds cars in Germany so it works out.

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