The elimination of the tariffs in China were already negotiated to end by 2020, from 25% to Zero. But trump happened, lacking diplomacy and fair negotiation skills necessary for cooperation with other world leaders, tried to force China to do what he wanted, but couldn't fire China. Like he does in his personal business. With the negative impact on US trade much worse than it was before he took action. For automakers who have already stated that the $1 Billion in extra costs for steel each, is a nut they can't overcome and still manufacturer the same cars in the US. That does not even cover the additional cost on parts sourced from China. That comes right out of the minimal profits on cars, and threw them in the deep, deep red. And there is NO sign of his trade war ending anytime soon, auto manufacturers have to plan years out and for the long term, because not only can they not afford to buy the steel they need from China, they have to invest in building plants at a quicker pace in China for long term survival, and away from his impact on their bottom line. He just pulled the rug from under the US auto market and made the best option for global manufacturers, to make China their primary manufacturing base...and they are all building new plants today.Aside from plant shutdowns, I read somewhere that GM is shifting from hybrid to EVs. Volt will get discontinued while the Bolt EV lives on.
It's a victim of the trade war. The plan was to build high profit SUVs/ trucks in US plants and import the lower profit Focus. Then Trump happened, so plans for the US Focus was shelved.
Plans to build in the US, using US work force and import to China has been scrapped. Lincoln can't get production going in China fast enough, because every sale of a US made vehicle has to have the margin of a consumer brand vehicle. Even if auto manufacturers tried to source all those parts from the US, it would take years to get suppliers up to speed, while the added costs would cost consumers much more for the same product. Which would mean overpriced products, less sales, lower production needs, lower supplier needs, less employees......there is no up side to this cycle.
He just needs to get out of the way, let China follow the plan already negotiated by the US(before trump happened) that enabled stability and progressive profitability for all concerned long term globally.
Again, there is no up side to this nightmare he has created for the US automakers and US autoworkers and suppliers. Because once the product is manufactured in China where it's cheaper, so will all the parts be made because they are also cheaper, with suppliers demanding less profits/lower margins and higher volume.
But the interesting thing here is that automakers needed to shed lots of manufacturing weight(facilities/workers/suppliers) to prepare for the leaner EV production, so his actions are actually pushing US automakers into EVs faster than they wanted. But clearly not what he wanted....