US rates UU And China reach the products manufactured in the United States from chips to cars

Chip makers, car manufacturers and soybean producers are among those that face the most tariffs imposed by the United States and China in unexpected ways.


Donald Trump

The plan to impose tariffs on around $ 50 billion of Chinese products will force US semiconductor companies to pay taxes on their own products due to the complexities of global supply chains, according to the Semiconductor Industry Association.

designed in the USA UU., And some of its components are manufactured nationwide before being sent to the Asian country for badembly, testing and packaging. The group called the rates "counterproductive."

Meanwhile, Beijing's retaliatory measure of including US-made vehicles on its 25% duty-bound list means carmakers with payment suspensions seemed to have received last month, when China said It would reduce tariffs on cars, it never took off. In May, China said that as of July 1, it would reduce tariffs on vehicle imports to 15% from 25%, a long-standing rate, to quell the Trump administration's complaints of a trade imbalance.

German car manufacturers as


and the Mercedes-Benz from Daimler AG, as well as the electric car manufacturer



Ford Motor

, would have benefited from the reduction of Chinese tariffs. Those companies collectively sold some 240,000 vehicles built in the United States in China last year, according to research firm LMC Automotive.

The effect of tariffs on US cars manufactured in China would be more moderate. Two car companies-

General engines

and the Volvo brand of Zhejiang Geely Holding Group Co., represented the approximately 54,000 vehicles imported into the United States last year from the 17.2 million sold, said LMC. Last year, GM dealers sold about 40,000 Buick Envision sport utility vehicles made in China, as well as a few hundred hybrid Cadillac sedans, which represent approximately 1% of GM sales in the United States.

Still, tariffs on Chinese imports Ford and GM will use their Chinese factories to supply a limited number of cars to the US. UU These arrangements allow Detroit companies to add new and exclusive models to US showrooms, preventing capital outlays at their North American plants.

For American farmers, China's plan to impose levies on US soy is a problem that many hoped to avoid. With more than 90% of this year's soybean crop already on the ground, farmers from Arkansas to Wisconsin are facing being excluded from the world's largest oilseed market, which is used for animal feed and vegetable oil.

Agribusiness companies that dominate crop exports, such as Cargill Inc.,

Archer Daniels Midland



, which have already seen declining soy sales to Chinese buyers, may have to find alternative markets for oilseeds grown in the United States, if tariffs prompt China to increase purchases of Brazilian soybeans. The United States is the second largest producer of soybeans after Brazil, according to estimates by the US Department of Agriculture. UU

"Retaliatory measures will not resolve the concerns raised by these two governments," a Cargill spokeswoman said. "The impact of trade conflicts between the two largest economies in the world will have serious consequences for economic growth and job creation and will harm the most vulnerable in the world."

China's mbadive soybean demand has become the cornerstone of EE. UU Farmer sector. Last year, China imported about $ 14 billion of soybeans, almost two-thirds of all US soybean exports. UU., But a prolonged commercial battle could change that. A study conducted in April by Purdue University estimated that a 25% tariff on US soy could reduce US exports of oilseeds to China by 48% or more and reduce US production by 11% to 15%.

"The only thing I do not want to lose is China," he said.

Davie Stephens,

vice president of the American Soybean Association, speaking from the cab of his tractor while planting soybeans near Clinton, Kentucky.

Some industries succeeded in silencing the impact of the tariff by pushing for certain items to be excluded from US tariffs. UU list. The National Council of Textile Organizations said that it succeeded in getting almost all textile machinery built in China to be excluded from the tariff after it was included in the original list. The machinery is used by the manufacturers of fabrics and yarns from the USA. UU And "would hinder the competitiveness of US textile manufacturers." If I had a tariff, he said

Auggie Tantillo,

president of the textile group.

The medical device industry will also have a minor impact, at about $ 836 million on medical devices and diagnostics-related products that are imported from China, according to a spokesperson for AdvaMed, a US-based trade group that represents manufacturers of medical devices. dispositives.

The administration's initial tariff proposal in April would have affected $ 2.8 billion in imports of medical technology from China, AdvaMed said. I know. UU They import about $ 6 billion in Chinese medical devices annually, according to

Glenn Novarro,

an badyst at RBC Capital Markets LLC.

AdvaMed urged the US commercial representative. UU to eliminate medical technology from its list of specific products, "due to concerns about the adverse effects on our competitiveness, as well as the potential long-term impact on patient access to medical technology," the spokesperson said in an email. electronic. In May, 40 US lawmakers signed a letter urging the administration to save industry fees.

The efforts seemed to work, with the administration eliminating or almost eliminating products that included defibrillators, orthopedic implants and hearing aids, Mr. Novarro said in a note to clients on Friday.

-Joseph Walker contributed to this article.

Write to Jacob Bunge at [email protected] and Mike Colias at [email protected]


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