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Elon Musk Sides With Trump On Trade With China, Citing 25 Percent Import Duty On American Cars (cnbc.com)
Elon Musk believes China isn't playing fair in the car trade with the U.S. since it puts a 25 percent import duty on American cars, while the U.S. only does 2.5 percent for Chinese cars. "I am against import duties in general, but the current rules make things very difficult," Musk tweeted. "It's like competing in an Olympic race wearing lead shoes." CNBC reports: Tesla's Elon Musk is complaining to President Donald Trump about China's car tariffs. "Do you think the US & China should have equal & fair rules for cars? Meaning, same import duties, ownership constraints & other factors," Musk said on Twitter in response to a Trump tweet about trade with China. He added that no American car company is "allowed to own even 50% of their own factory" in the Asian country, but China's auto firms can own their companies in the U.S. Trump responded to Musk's tweets later at his steel and aluminum tariff press conference Thursday. "We are going to be doing a reciprocal tax program at some point, so that if China is going to charge us 25% or if India is going to charge us 75% and we charge them nothing ... We're going to be at those same numbers. It's called reciprocal, a mirror tax," Trump said after reading Musk's earlier tweets out loud.
We've had a 25% tariffs on trucks for decades. Trucks also happen to be the most profitable cars people make.
We've just never bothered with low-margin cars (sub-20k) because it's not useful to have the low-margin stuff done domestically.
Anyone who tells you America has not been "America First" is either ill-informed, deceiving you or both.
Really? How odd. I see Volvo S60s driving all over the place here. Where do you think they are made, and who do you think owns the company? You guys are so cute!
Meanwhile in Brazil import taxes on cars are roughly 115% Breakdown: http://thebrazilbusiness.com/a...
If he can herd the idiots towards real protectionism instead of ham-handed economic flailing, surely many people will be glad. People from a wide variety of political sides!
Elon Musk, Cat Whisperer.
I'd love to be able to either wholly own a company in China, or else require Chinese companies to also use a local intermediary. Then we could compete. I don't mind letting China set up the rules if we're going to mirror them. We have a big trade deficit, anything that improves parity helps.
Japan exported more than 1.6 million vehicles to America in 2015, while the U.S. sold less than 19,000 vehicles to Japan, accounted for about .03% of the five million cars and light trucks sold in Japan.
Japan taxes engine size and emissions. The annual tax on a vehicle with a 4-liter engine, an American pickup, is ¥76,500. Japan is the only developed country in the world with such a tax, so over a 10-year period, it would add up to the equivalent of a 12 percent import tariff.
I couldn't find the import limits, but remember seeing a limit on how many cars per maker was allowed. Not sure if thats still a trade issue.
Of course, the new theory is Americans gave up importing cars, because Japan has high tastes and want quality customer service and its too hard to serve them.
Obama even tried to fight for American imports into Japan.
https://www.detroitnews.com/st...
That statistic is misleading as fuck:
https://www.statista.com/stati...
http://www.worldstopexports.co...
China's car industry is *for the most part* a domestic industry. They don't export much period ($5B in auto exports in 2016 compared $151B for Germany and $55B for the US).
Of that tiny amount of exporting, the US is 9% of China's exports of automobiles. China mainly and mostly exports to the EU (20%). We're ranked just above Egypt for imports from China (WOOOOO!!?).
"4th largest" does not imply 1 - 3 were proportional. Nor does it imply China will give two shits about how much they export (if they mainly consume domestically).
Take your (trolling) or (lack of understanding) elsewhere.
I lived in Korea until 2000. Cheapest Hyundai back in 1980 was Hyundai Pony and it costed about $3000, not $30K. And oh yea, we did have ridiculously high tariff to protect our auto industry. Up until 2000, we never thought of owning a foreign car. I had never heard of BMW until high school. And we had one Audi-VW dealer around my area and I though the car brand was "AUDI VOLKSWAGEN' because that was the title of the dealership. No one I knew ever owned any foreign car because it was ridiculously expensive. But most family had one or two cars either from Hyundai, Kia, Daewoo, SsangYong.