US President Donald Trump has followed through on his threat to impose a 10% tariff on all goods imported into the country from China. For the automotive industry, this is in addition to the 100% tariff on Chinese electric vehicles (EVs). 25% tariffs on Canada and Mexico have also been implemented.

A White House fact sheet published on 1 February described this action as necessary for instigating talks to improve public welfare, criticising Chinese officials for failing to “stem the flow” of illegal aliens and precursor chemicals for fentanyl. “Access to the American market is a privilege,” it said. China is also being penalised by Trump for instances of what he considers intellectual property theft, forced technology transfer, and “other unreasonable behaviour”.

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