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Trump Trade War – Will jeopardizes livelihoods of US auto workers - BMW

Auto News - Published on Thu, 12 Jul 2018

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German automobile manufacturer BMW announced new plans to produce more vehicles in China to avoid the trade tariff on US car imports imposed by China. BMW and Brilliance Automotive Group Holdings, which is based in China, signed an agreement to produce 520,000 cars in China by 2019, according to announcement.

Separately, BMW will increase the prices on its SUVs made in the US for export to China, the world's largest automobile market.

The Munich-based carmaker said it is "not in a position to completely absorb the tariff increases" established by China on US automobiles, which amount to a 40 percent increase in price.

The import duties China is slapping on cars made in the US come in response to new tariffs initiated by US President Donald Trump on products imported to the US from China. Trump's "trade battle with China is threatening the US's growing role as an auto exporter," the Wall Street Journal reported Tuesday.

Financial policy analyst Daniel Sankey told Sputnik News "Now that the trade war is on, China is placing very smart, strategic tariffs that target Trump's base. By comparison, the Trump administration lacks the savvy and skill to impose tariffs in such a way that doesn't simply harm every single strategic trading partner from the European Union to China."

Plenty of BMW SUVs are made in Spartanburg County, South Carolina, where the company employs some 10,000 US workers. Some 63 percent of Spartanburg County voted for Trump in the 2016 presidential election, while Democratic candidate Hillary Clinton won just 33 percent of the vote. Overall, the state of South Carolina swung for Trump, with the Republican winning 54 percent of the state's vote over Clinton's 40 percent.

Now Volvo, a subsidiary of Chinese automotive company Geely Holding Group, may nix its plans to expand production at a plant in the South Carolina city of Charleston. The planned expansion, intended to build SUVs for export to China, requires growing the factory staff from 1,200 to 4,000, according to the Wall Street Journal. Clinton actually beat Trump in Charleston County, winning 50.6 percent of the vote to Trump's 42.8 percent.

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Posted By : Nanda Koijam on Thu, 12 Jul 2018
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