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With Donald Trump hinting at renewed tariffs on imports, manufacturers across industries, especially automotive, may be facing significant changes. A proposed 60% tariff on Chinese imports and potential tariffs on Mexico and the EU could reshape supply chains and raise prices. In the automotive sector, companies are already grappling with rising costs of electric vehicle development and the pressure of competitive, affordable EVs from China. New tariffs could lead carmakers to shift more production to the US, increasing operational costs that may ultimately trickle down to consumers. 🤔 #tariffs #globaltrade #manufacturing #automotivendustry #economicpolicy #trump #election #automotive #autoindustry #automobiles

Stellantis CEO warns of imposing additional tariffs on chinese EVs Despite repeated warnings about the risks of protectionism and an impending trade war, it has become clear that Chancellor Olaf Scholz is unable to prevent the EU from imposing tariffs on Chinese EVs. https://bit.ly/3UPgpst Now Stellantis CEO Carlos Tavares also warns of imposing additional tariffs on chinese EVs, according to Reuters. https://lnkd.in/d3HZvD6K Tavares emphasizes the potential job and production implications due to escalating tensions over EV trade as EU and U.S. are considering imposing additional tariffs on Chinese carmakers. U.S. officials said Wednesday they plan to hit Chinese made EVs and EV materials with duties up to 100% by Aug. 1. https://lnkd.in/eJsRKt4e Tavares cautions that such tariffs could lead to social consequences and hinder Western automakers from competing with lower-cost Chinese manufacturers. "When you fight against the competition to absorb 30% of cost competitiveness edge in favour of the Chinese, there are social consequences. But the governments, the governments of Europe, they don't want to face that reality right now," Tavares said, according to Reuters. He highlights the risk of inflation and its impact on sales and production, emphasizing the challenging price battle ahead with Asian competitors. "We are not talking about a Darwinian period, we are in it," Tavares said at a Reuters Events Automotive Europe conference in Munich, adding the price battle with Asian rivals would be "very tough". "This is not going to be easy for the dealers. It's not going to be easy for the suppliers. It's not going to be easy for the OEMs. As we know in Europe, everybody is talking about change as long as change is for somebody else." The European Commission will unveil an initial decision on potential tariffs on Chinese EV imports on June 5, as China prepares for possible countermeasures. Picture credit: Stellantis #ElectricVehicles #TradeTensions #AutomotiveIndustry #stellantis #tariffs #china #usa #eu #OlafScholz

Transportation - Carmakers Face Profit Hit from Potential Tariffs European and American carmakers could see a significant profit drop if the U.S. imposes tariffs on imports from Europe, Mexico, and Canada. This is particularly concerning for premium brands like Volvo and Jaguar Land Rover and major automakers like General Motors and Stellantis. President-elect Trump's proposed tariffs could disrupt existing trade agreements and lead to higher costs for carmakers. Additionally, stricter European emissions regulations in 2025 will further pressure the industry. S&P Global warns that these combined factors could increase the risk of credit downgrades for some automakers. #icws #automaker #transportation #tarriffs #usa https://lnkd.in/eTmkaMfU

Stellantis CEO warns of imposing additional tariffs on chinese EVs Despite repeated warnings about the risks of protectionism and an impending trade war, it has become clear that Chancellor Olaf Scholz is unable to prevent the EU from imposing tariffs on Chinese EVs. https://bit.ly/3UPgpst Now Stellantis CEO Carlos Tavares also warns of imposing additional tariffs on chinese EVs, according to Reuters. https://lnkd.in/dNCzudbm Tavares emphasizes the potential job and production implications due to escalating tensions over EV trade as EU and U.S. are considering imposing additional tariffs on Chinese carmakers. U.S. officials said Wednesday they plan to hit Chinese made EVs and EV materials with duties up to 100% by Aug. 1. https://lnkd.in/d8RUvFay Tavares cautions that such tariffs could lead to social consequences and hinder Western automakers from competing with lower-cost Chinese manufacturers. "When you fight against the competition to absorb 30% of cost competitiveness edge in favour of the Chinese, there are social consequences. But the governments, the governments of Europe, they don't want to face that reality right now," Tavares said, according to Reuters. He highlights the risk of inflation and its impact on sales and production, emphasizing the challenging price battle ahead with Asian competitors. "We are not talking about a Darwinian period, we are in it," Tavares said at a Reuters Events Automotive Europe conference in Munich, adding the price battle with Asian rivals would be "very tough". "This is not going to be easy for the dealers. It's not going to be easy for the suppliers. It's not going to be easy for the OEMs. As we know in Europe, everybody is talking about change as long as change is for somebody else." The European Commission  will unveil an initial decision on potential tariffs on Chinese EV imports on June 5, as China prepares for possible countermeasures. Picture credit: Stellantis #ElectricVehicles #TradeTensions #AutomotiveIndustry #stellantis #tariffs #china #usa #eu #OlafScholz

🚗 China Launches Probe into EU Car Imports, Imposes Tariffs 🚗 The evolving dynamics between China and the EU automotive market just took another turn. China's recent decision to investigate European car imports and impose tariffs on them could reshape the landscape for automotive manufacturers and suppliers. The potential financial impact is significant. According to industry analysts, the European automotive sector exported nearly €8 billion worth of vehicles to China last year. With the imposition of tariffs, costs could increase by 10-20% for European automakers selling in China, potentially translating to billions in lost sales and increased prices for consumers. For major players like Volkswagen, BMW, and Mercedes-Benz, which collectively hold a large market share in China, this could mean adjusting their strategies or facing a 5-10% decline in sales in the short term. Additionally, the ripple effect could strain European supply chains and lead to potential layoffs or a shift in production strategies to remain competitive. As the automotive industry continues to adapt to geopolitical shifts and trade tensions, it's crucial for stakeholders to stay informed and proactive. The need for supply chain visibility and adaptability has never been more critical, especially as companies navigate these complex trade relationships. How do you think this will impact the automotive supply chain, especially for European EV manufacturers aiming for global expansion? 🤔 #AutomotiveIndustry #EV #SupplyChain #China #EU #TradeTensions #ElectricVehicles #AutomotiveNews #Tariffs

The European Union is imposing tariffs up to 37.6% on Chinese-made electric vehicles, escalating trade tensions with Beijing. The provisional tariffs, effective immediately but subject to ongoing negotiations over the next four months, aim to prevent a surge of subsidised, low-cost EVs into the EU market. China has threatened retaliatory measures. European automakers, including Volkswagen, argue that the tariffs on Chinese electric vehicles could have several negative impacts. They contend that these tariffs may increase production costs, lead to higher prices for consumers, and disrupt the supply chain. Volkswagen and others warn that this could ultimately weaken the EU's automotive industry, making it less competitive globally. They suggest that instead of imposing tariffs, the EU should focus on enhancing its own EV manufacturing capabilities and competitiveness. #EUTariffs #ChineseEVs #TradeTensions #SubsidizedEVs #AutomotiveIndustry #ConsumerPrices #Volkswagen #SupplyChainImpact #GlobalCompetitiveness #EVManufacturing #TradePolicy #EUChinaRelations #ElectricVehicles #AutoIndustry #TariffsDebate

Stellantis NV will shift production of some models made by China’s Leapmotor to Europe if tariffs on electric-vehicle imports announced this week go into effect.  The new partners, starting sales in Europe from September, may accelerate plans to shift assembly of some Leapmotor models to Stellantis factories because of the potential extra costs, Chief Executive Officer Carlos Tavares said late Thursday. Last month, the companies already said the EVs will eventually be made outside of China, partly in light of rising global trade tensions.  The venture targets mass-market buyers with at least six new models by 2027. The European Union notified carmakers including BYD, GEELY and MG owner SAIC this week about additional levies on EV imports after finding the manufacturers received state subsidies that violated trade rules. The decision drew a sharp rebuke from China and foreshadowed retaliatory measures.  The tariff level, on top of an existing charge of 10%, will vary according to the degree of cooperation by individual carmakers with the probe. BYD Co. is set to pay an additional 17.4% while Saic Motor Co., Ltd. Corp.’s rate is at 38.1%. Other manufacturers will be receive a weighted average levy. Excellent work by BNN Bloomberg https://lnkd.in/gXyfRRn9

Addressing the Impact of Tariffs on the Automotive Industry Follow me for more technical data :https://lnkd.in/evN3jc94 Carlos Tavares, CEO of Stellantis, has brought attention to a pressing issue in the automotive industry: the rise in tariffs on electric and internal combustion vehicles, especially those imported from China. These tariffs present significant challenges and risks for the industry, potentially disrupting international trade and compliance with WTO regulations. In a recent interview with Reuters, Tavares stated, "The tariffs on Chinese vehicles imported into Europe and the United States represent a major risk for countries adopting this strategy. These tariffs will not prevent Western automakers from needing to restructure to compete with lower-cost Chinese manufacturers." He elaborated, "We are experiencing a Darwinian phase, with social consequences emerging as we attempt to offset the competitive advantage held by Chinese manufacturers. European governments seem reluctant to address this reality." Tavares also pointed out the economic impact, noting that tariffs are likely to fuel inflation in the affected regions, negatively influencing sales and production. At the Reuters Events Automotive Europe conference in Munich, he stated, "We are not merely approaching a Darwinian period; we are already in it." He anticipates challenging price competition with Asian manufacturers. The situation is further complicated by recent developments. The United States plans to impose tariffs of up to 100% on electric vehicles and related materials from China by August 1. Similarly, the European Commission will soon announce potential tariffs of up to 20% on Chinese electric vehicle imports. In response, China has threatened to increase tariffs on internal combustion vehicles, significantly affecting German automakers such as BMW, Mercedes-Benz, and Volkswagen. China's potential countermeasures include raising import taxes on gasoline engines over 2.5 liters to 25%, consistent with WTO standards. Liu Bin, from the China Automotive Technology & Research Center, remarked, "Certain countries have adopted restrictive measures in the new energy vehicle sector that contradict green development principles and market economy rules." #AutomotiveIndustry  #TradePolicies  #Tariffs  #GlobalMarket  #ElectricVehicles  #Stellantis  #CarlosTavares  #WTOCompliance  #IndustryChallenges

"EU to impose multibillion-euro tariffs on Chinese electric cars Brussels moves ahead with additional duties of up to 25% despite opposition from Germany" - Financial Times. Per Tom T. the highest tariff is even (& much) higher than that: "38.1% for #SAIC (didn't cooperate 👀)." I hope and trust that the UK does not follow suit. British consumers can benefit from high quality, yet low price, excellent Chinese EVs such as those produced by BYD - the pinyin initials name Biyadi, which puns in Chinese as "Cheaper than Petrol". Quoting Lei Pi, Shenzhen Precise Testing Technology Co. ltd: "There are more than 100 EV manufacturers in China. Companies have to be low-price and innovative to survive." Do we want a transport EV transition or not? There's nothing better to encourage adoption than: "This will save you ££" There are huge opportunities for partnership with China on EVs, to accelerate the global transition that is so badly needed. Italian/ French OEM Stellantis Chief Executive Carlos Tavares, reported by CNBC, is pitch perfect: Tariffs are '“a major trap for the countries that go on that path” and will not allow Western automakers to avoid restructuring to meet the challenge from lower cost Chinese manufacturers... Tavares said that tariffs would only fuel inflation in the regions where they are imposed, potentially impacting sales and production. The Stellantis-Leapmotor joint venture, the first one between a Western and a Chinese carmaker designed to sell and produce EVs from a Chinese manufacturer outside China, will help the Franco-Italian group expand its global offerings of budget vehicles. “We will try to be Chinese ourselves, which means instead of being purely defensive vis-à-vis the Chinese offensive, we want to be part of the Chinese offensive,” Tavares said.' Full story at:

The European Union is deliberating on imposing tariffs on Chinese-made electric vehicles, in response to concerns over alleged unfair competition and market manipulation. This move comes as the EU seeks to protect its domestic electric vehicle industry from being overshadowed by an influx of cheaper imports from China. The consideration of tariffs reflects a broader effort by the EU to level the playing field for its own manufacturers and ensure that environmental standards are upheld in the production of electric vehicles across borders. The EU alleges that China is selling their EV's at an artificially low price, with the purpose of killing off competition in the EU. This would then allow the Chinese manufacturers to sell their vehicles at a realistic price as they will have an effective monopoly. For example the ‘Seagull' EV (manufactured by BYD) currently has a starting price of £7,500 in China. In the European market it is more likely to market at around £14,000. That would be a very competitive price for an EV. China accounts for about 60% of the global EV market with more than eight million EV’s having been sold. Companies such as BYD have seen such rapid growth in sales that they are now competing with Tesla for the title of being the worlds number one manufacturer of EV's. The Americans have also been concerned about the threat of a glut of cheap Chinese made EV’s entering the American market. The Biden administration raised its tariff on imports of Chinese EV’s from 25% to 100% in response to the evaluation of the potential threats. While considering tariffs on Chinese-made electric vehicles may spark tensions between trading partners, it underscores the EU's commitment to fostering a fair and sustainable marketplace for electric vehicle production. By taking proactive measures through an introduction of tariffs, the EU hopes to not only safeguard its own industry but also advocate for responsible manufacturing practices that align with its values of environmental protection and social responsibility. Ultimately, the decision on tariffs reflects a larger strategy aimed at promoting innovation and competitiveness in the burgeoning electric vehicle sector, protecting jobs in the EU, whilst at the same time upholding principles of fair trade and sustainability at an international level. #EVMarket #EUTariffs #SustainableTrade #ElectricVehicleIndustry #FairCompetition