Automakers continue to adjust their strategies as a result of the tariff war launched by the U.S. administration. This week, we learned that General Motors (GM) informed employees and dealers involved in its export operations to China that it will stop shipping vehicles there from the United States.
This decision comes as the U.S. and China continue discussions on tariffs and other trade-related issues.
GM exported vehicles to China through its premium import company, Durant Guild. A company spokesperson stated that that trade represents less than 0.1 percent of the volume of vehicles sold in China. So while the volume involved is negligible, the move says a lot about the new reality manufacturers are facing. And it speaks as well to the ongoing uncertainty facing carmakers, who are finding it practically impossible to predict what the situation will be in six months.
"Due to significant changes in economic conditions, we have decided to restructure Durant Guild and optimize GM China's operations accordingly," explained GM’s spokesperson.
Goods imported into China from the U.S. were subject to customs duties of over 100 percent before the two countries recently agreed to reduce them for 90 days. We'll have to see what happens at the end of the 90 days, in about two months.