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brohoolio | 1 year ago

Can you explain what you mean?

I fail to see the downside for EU manufacturers.

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constantcrying|1 year ago

China is VWs biggest market. BMW, Renault, Mercedes all have massive interests in China, which very quickly end the second China retaliates on the tariffs.

Currently EU manufacturers are competing in China. If a trade war happens that will end and both sides will retreat to their own respective regions, currently that is clearly worse for EU car makers. All German car makers oppose these tarrifs for exactly those reasons.

wraptile|1 year ago

> China is VWs biggest market

Yes but for how long? China was very successful at baiting Tesla and raising their own EV industry. If anything it's proving that businesses can't rely on Chinese markets even without a trade war.

zihotki|1 year ago

German automakers oppose it because they will be hit the hardest. They focus on premium market. They don't have much competition in that market especially for conventional cars. And they don't care much what will happen later and with others.

But the other side of the wall is that all other low and mid price segment manufacturers (Renault, Stellantis, etc.) welcome the tariffs. Because that's where the automakers from China compete (unfairly).

Archelaos|1 year ago

I think the OP meant "as intented by the US", ie. car manufacturers moving their production for the US market out of China.

ulfw|1 year ago

Majority of VWs sold in China are made in China

_trampeltier|1 year ago

Some part of the inflation now is also because of the import new import tariffs (my country first). Countrys with new high import tariffs have a higher inflation rate.