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US Auto and Auto Manufacturers Encourage US and Chinese Governments to Resolve Disputes in Response to China's Friday's Notice of Reinstatement of 25% Duties on Imported Automobiles and 5% on Auto Parts imported from December 15th.
The Chinese Ministry of Commerce has unveiled a plan to apply additional tariffs on a total of $ 75 billion worth of US goods, part of which will apply to US auto exports. A statement from the Chinese Ministry of Commerce announced that a first set of tariffs ranging from 5% to 10% on 5,078 US products would come into effect on September 1st. The effective dates reflect the US tariffs already on a $ 300 billion budget starting September 1st.
While one series of tweets President Trump on Friday ordered US companies to look for alternative markets to China and blamed China for not stopping the theft of US intellectual property.
A spokesman for Ford Motor Company (FORD), the largest exporter of assembled vehicles in the United States, told Yahoo Finance that the company is uniquely positioned as a net exporter in China.
"We encourage the United States and China to find a short-term solution to the remaining problems by continuing negotiations. It is essential that these two important economies work together to promote balanced and equitable trade, "said the spokesman.
In the second quarter of 2019, Ford recorded a 9% overall year-over-year decline in wholesale sales, partially due to China. The company still managed to reduce its losses in China for the quarter. In China, the automotive sector recorded a 48% increase in consolidated sales compared to the previous year, driven by Lincoln's increased volumes, which reduced the EBIT loss to $ 155 million.
Motor & Equipment Manufacturers Association, a professional organization representing light and commercial motor vehicle manufacturers and parts manufacturers, which is the largest manufacturing sector in the United States, has said it wants a resolution that includes the protection of intellectual property and resumption of trade.
"MEMA has repeatedly called on China and the United States to work together to reach a trade agreement that works for both countries," said the organization. "We call on both parties to resume talks and conclude an agreement that will allow US companies to remain competitive in a global market while protecting intellectual property rights."
Goodyear Tire & Rubber Company (GT), which manufactures and distributes tires and other vehicle-related products around the world, has said it supports free and fair trade.
"We are closely monitoring the current business activity between the United States and China and will take action if necessary to provide uninterrupted service to our customers," said a spokesman for the company at Yahoo Finance.
Goodyear announced a drop in demand in China in its second quarter results and attributed a 12% decline in the volume of original equipment units to lower vehicle production in China and India.
US exports of auto parts in China totaled more than $ 3 billion in 2018, according to the Auto Care Association.
"US brands are recognized and highly valued in international markets," said Angela Chiang, director of international business at the Auto Care Association. "Imposing tariffs on US products and excluding them from Chinese markets means a reduction tariffs for all other countries and competitors. "
The Chinese Xinhua news briefing announced that China would accept tariff waiver requests, the details of which would be announced by governments at a later date.
Yahoo Finance has contacted General Motors (GM) and has not received an immediate response.
Fiat Chrysler Automobiles (FCAU) has referred the comments to its representative organizations, the American Automotive Policy Council and the Alliance of Automobile Manufacturers, to which Yahoo Finance has not received an immediate response.
Alexis Keenan is a journalist for Yahoo Finance. Follow Alexis on Twitter @alexiskweed.
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