BMW to Move US Production to China: More "Winning" Coming, $200B Trump Response

I keep wondering how much more winning we can take. Regardless, more winning is on the way, another $200 billion.

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".

Ka-Blam

8D Chess

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.

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Winning Getting Out of Hand

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

Comments
No. 1-25
MorrisWR
MorrisWR

It’s not only on this site but others, as well as offline. I hope in the future we can all have a bit more dialogue and not worry so much about our differences. When the economy finally goes into recession, I believe it will only get worse.

TheLege
TheLege

You are wrong. The Beemers made in the U.S. are notoriously poor quality . The vehicles assembled in China have not been without their issues but are improving rapidly. I have a VW that was made in China and it has been trouble-free for 6yrs.

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