GM is caught in the middle of Trump's trade war.
General Motors has to deal with new tariffs on cars it imports into the United States from China after Robert Lighthizer, US trade representative, announced a new batch of trade measures, highlighted by a 25-percent tariff on Chinese-made cars. The move doesn’t affect any of China’s domestic auto companies because none of them actually sell cars in North America. In fact, it’s probably going to end that little experiment before it even begins. General Motors, however, will be affected.
Two models, the Cadillac CT6 Plug-In Hybrid and the Buick Envision crossover, are built in the People’s Republic and shipped to America. Both will now face a new 25-percent tariff, matching China’s penalty on US built vehicles. As a result, both will see their base prices increase by several thousand dollars. The old tariff was 2.5 percent. “We continue to believe both countries value a vibrant auto industry and understand the interdependence between the world’s two largest automotive markets,” the company said in a statement. “We support a positive trade relationship between the US and China, and urge both countries to continue to engage in constructive dialogue and pursue sustainable trade policies.”
In 2017, GM imported 29,878 Envisions into the US from China, accounting for 17 percent of Buick’s total sales. Crosstown rivals Ford also released a statement encouraging the two nations to hold more constructive discussions as the automaker plans to import the 2019 Focus from China—if it doesn’t kill the model altogether.