The hottest U.S. media trade war will increase the

2022-09-29
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U.S. media: the trade war will increase the price of U.S. auto parts purchased from China

"the trade war against China provoked by trump will first hit your auto parts", the U.S. media Bloomberg said on the 4th that Trump's tax increase on Chinese goods will cause the price of Chinese auto parts purchased by U.S. buyers to rise, although some buyers may choose to find alternative suppliers, But the problem is that many Chinese suppliers are difficult to replace

Bloomberg said that with the escalation of trade frictions between China and the United States, small suppliers such as automotive lighting manufacturers and their American customers are living in a gap, and many American customers have taken measures to seek to reduce the impact

in the report, a Chinese auto parts manufacturer said that since trump imposed tariffs on items such as car gaskets and ignition wiring sets in July, American customers of the company's LED lights hope to deliver their orders early, because they don't want to be affected by the next round of mixed tax

for American customers of Chinese auto parts, affected by tariffs, they may look for alternative suppliers. Hopkins manufacturing Corp., a Kansas based auto parts supplier, said in an interview with Bloomberg that it was considering using suppliers from Taiwan, China

however, the report said that the current problem is that many Chinese suppliers may be difficult to replace. For American companies such as autozone Inc. and advance auto parts Inc., it often takes years to find reliable parts suppliers in order to meet quality control and shipping schedules

according to the data of the U.S. Department of Commerce, China's auto parts exports to the United States increased by nearly 18% between 2012 and 2017. In 2017, it reached US $17.6 billion last year. In the first half of this year, Chinese manufacturers exported about $9.8 billion in auto parts to the United States, an increase of nearly 13% over the same period

with regard to the impact of U.S. Taxation on China's auto parts, Zhang Wenzong, a researcher at the American Institute of modern international relations, said in an interview with globegroup that, first of all, the crack growth rate of the U.S. tariff is close to that of the V-notch impact specimen, which breaks under the impact force, reflecting the decline in the competitiveness of U.S. cars, and has not much advantage in technology. The American automobile industry as a whole has the disadvantages of high cost and weak overall competitiveness. Secondly, due to the reciprocal measures taken by China to levy taxes on the United States, it also has a certain impact on the automotive industry in the United States. If the trade war continues, trump may risk losing the Chinese market in revitalizing the U.S. auto industry. Finally, the common problems and solutions of China's auto parts exports to the United States: not big, mainly in China's own market, as well as Africa, Latin America and other countries, so the direct impact of U.S. tariffs on our auto industry is not great

Dongyan, a researcher of the Academy of Social Sciences, also believes that due to Part 5, the hardware and software settings of the wire change experimental machine to correctly set the software, the market share of domestic auto parts is high, and there is no substitute, it is not necessarily Chinese enterprises that bear the tariff, and a considerable part of the tariff is finally passed on to American automakers

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