Trump’s tariffs to hurt Chinese automakers

Several Chinese automakers, including SAIC Motor Corp and Chery Automobile, will suffer if Republican candidate Donald Trump wins the presidential election in November and goes through with a threat to impose a 100% tariff on Chinese cars that are made in Mexico.

Trump vowed on Saturday, while delivering a campaign speech in Dayton, Ohio, to discourage the import of Chinese autos from Mexico.

“Those big monster car manufacturing plants you are building in Mexico right now and you think you are going to get that — not hire Americans and you’re going to sell the car to us, no,” Trump said. “We are going to put a 100% tariff on every car that comes across the lot.”

In early March, Trump said he would impose a 50% tariff on Chinese autos if he wins the presidential election. He also proposed tariffs of as much as 60% on all Chinese goods and 10% on goods made in the rest of the world.

The Trump administration in May 2019 had imposed an extra 25% tariff on Chinese goods on top of the usual 2.5% tariff. US President Joe Biden maintained the policy after he took office in January 2021.

When giving a speech in South Carolina on February 23, Trump mentioned his plan of starting a new trade war against China.

“If China or any other country makes us pay a tariff of, let’s say 100, 200 or even 300%, and they do that, we will make them pay a reciprocal identical tariff of 100, 200 or 300% right back,” he said. “It’s called you screw us and we screw you. Very simple.”

On March 12 during a regular Chinese Foreign Ministry briefing spokesperson Wang Wenbin was asked by a foreign journalist about Beijing’s view on Trump’s proposal of raising tariffs on Chinese goods to 60%.

“The economic and trade relations between China and the US