As trade tensions between China and the United States heat up, Chinese leaders have been eyeing a range of American products for 25% tariffs - including cars. CGTN's Toby Muse looks at what that might mean for the auto industry.
Like other industries, the U.S. auto industry is wondering what impact the latest proposed tariffs could have on their bottom line. The United States Trade Representative, says the U.S. exports $11 billion worth of vehicles to China, approximately 270,000 cars.
Brookings Institute estimates that around 120,000 U.S. jobs could be impacted by China's proposed tariffs. BMW, which produces cars in the U.S., issued a statement saying it stands for free trade worldwide and that 'A further escalation of the trade conflict between the U.S. and China would be harmful to all stakeholders'. The company said that a quarter of the BMW X models produced in the U.S. last year were exported to China, making the country the number one destination for the vehicles.
German automakers, such as BMW and Mercedes-Benz, are exporting around 100,000 cars from the U.S. to China this year. Excluding the electric car giant, Tesla, U.S. automakers export around 30,000 cars to China. Tesla has seen tremendous growth in China in recent years, selling over two billion dollars' worth of its electric cars in 2017.
Analysts here say these proposed tariffs could slow U.S. entry into the growing Chinese auto market. Toby Muse, CGTN- Washington.