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.
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.