BMW to Move US Production to China: More "Winning" Coming, $200B Trump Response
Mike Mish Shedlock
Thanks to Trump's tariffs and China's response BMW Increasing Production in China, in a shift away from the US.
Automaker BMW says it will build more of its popular SUVs overseas to offset the higher cost of sending cars to China due to recently enacted tariffs.
BMW also said it will raise the price of South Carolina-built vehicles sold in China to help offset that country's new 40 percent import tax on cars from the U.S., retaliation for higher tariffs on Chinese goods imposed by President Donald Trump.
BMW builds key SUV models in Spartanburg County, where it employs 10,000 people. Those vehicles are exported to 140 countries, making BMW the largest U.S. auto exporter. Most of the cars made in the Upstate are shipped overseas through the Port of Charleston's Columbus Street Terminal.
BMW and Chinese partner Brilliance Automotive Group Holdings signed an agreement Monday to expand their joint venture, the German automaker said in a news release. The deal will boost the number of cars produced annually at two facilities in China to 520,000 by 2019.
Winning Announcements Stack Up
This winning announcement is fresh on the heels of this Tesla winning announcement: Tesla Production Heads to China: Bull and Bear Case Explained.
Previously, we had this winning announcement: Harley to Shift Some Production Overseas.
On the Harley announcement, I heard analysts say "BMW is far more important and EU production will move to the US."
Something happened to the latter half of that thought.
Forget about that, BMW is clearly more important than Harley. That makes the BMW announcement a bigger Trump "win".
Tariff fans say China has more to lose and Trump is playing 3D chess.
Is that 3D or 8D?
I cannot think in eight dimensions. I am dimensionally-challenged.
I must be playing tiddlywinks.
- Latest US Trade Casualties: Nails, Whiskey, Cranberries, Lobster, and Autos Too.
- Three US Tire-Chord Makers Threaten to Close Doors Due to Trump Tariffs
Winning Getting Out of Hand
In case you missed it, Thanks to Trump Tariffs Soybeans Tumble Near 10-Year Low.
This "winning" is getting a bit out of hand. I have lost track of the wins. But I do have a simple question:
How much more winning can we take?
While pondering that simple question, Bloomberg reports U.S. Poised to Publish $200 Billion China Tariff List.
Perhaps it's time to consider my tiddlywinks view: No Matter What Any Other Country Does, the Correct Action is to Reduce Tariffs.
Mike "Mish" Shedlock