Chinese car sales falter as chatter builds that US will challenge China
Cars may be a flashpoint in the US-China trade relationship
The New York Times reports this week on the massive tariffs China imposes on car imports. A jeep Wrangler, for instance, manufactured in Toledo Ohio, costs US$71,000 in China, versus just over US$40,000 in the US. There is at least one report suggesting that the White House is gearing up to confront China on the issue. This, as Chinese automakers are offering discounts to try and get rid of excess supply. While the Chinese government is bracing for the US to play hard ball on sectors such as steel, furniture, or with state-owned firms, they might want to watch out for automobiles.