 "A full-scale trade war with China and the US is in the offing. AFP")
Amid the escalating trade war between Washington and Beijing, following Trump’s reciprocal tariff measures, US-based automotive giant General Motors informed its employees and dealers in China on Thursday that it will cease exporting cars from the United States to China.
The decision comes as the US and China continue discussions on tariffs and trade-related issues.
GM had been exporting cars to China through its Durant Guild premium import business, which accounted for less than 0.1 per cent of its total sales in the country, according to a company spokesperson.
The spokesperson said they are restructuring The Durant Guild and streamlining GM China’s operations due to significant changes in economic conditions.
Previously, goods imported from the US to China faced tariffs of over 100 per cent, until both countries agreed to temporarily reduce them for 90 days.
In April, GM’s rival Ford also halted its exports to China.
Trump trade war truce with China
With the trade war truce last week, China signalled that US President Donald Trump didn’t have the upper hand.
As part of the agreement, both countries decided to cut tariffs for 90 days. US tariffs on Chinese goods dropped from 145 per cent to 30 per cent, while Chinese tariffs on US goods fell from 125 per cent to 10 per cent.
Even though the deal appears to be even, it marked a victory for China as Trump barely scored any concession.
Capital Economics Chief Asia Economist Mark Williams said the truce was “another substantial retreat from the Trump administration’s aggressive stance” because it does not include any commitments by China on its currency or trade imbalances, according to a research note cited by The New York Times.
Impact Shorts
More ShortsWith inputs from Reuters.