The US-China trade war has claimed a lot of victims, and another is in line, it appears. The China-made Buick Envision from General Motors will be slapped with a 25 percent tariff courtesy of the dispute. General Motors is seeking ways to let the model avoid the added tax.
The Envision, which is the car model assembled only in China, was a big hit in the US market; about 19 percent of Buick sales went to the car model. As such, it's drawn unwanted attention from United Automobile, Aerospace, and Agricultural Implement Workers of America (UAW) as well as critics from political states like Michigan and Ohio.
Auto News China reveals General Motors faces stiff competition in the US. It can't compete with the likes of Jeep and GM's fellow Cadillac, which sells mid-sized vehicles like the Envision is. The Envisions is only third in sales in the US; the top tiers belong to the Jeep Grand Cherokee and the Cadillac XTS, that's why the Envision needs to sell in China. It does sell to the tune of 200,000 units a year.
The Envision is part of $50 billion worth of Chinese products which stand to be slapped with a 25 percent tariff, courtesy of the Trump administration's tax law; the duties could add about $8,000 to the current price, as revealed by a representative from Buick. The Envision, which is imported by GM from China, currently sells at $31,995 per unit.
GM Authority reveals that the Envision isn't the only import facing tariff duties. The Cadillac CT6 Plug-in, another GM import from China, will also become a casualty of the trade dispute. How much will be added to the price remains to be seen, as most of the other CT6 models are assembled and delivered locally from the Detroit-Hamtramck assembly plant.
The current dispute has left around 13,000 vehicles left to respective dealers, while only 7,000 vehicles were sold from April through June this year. With an inventory that size, dealers will have more than enough Envisions for people looking for it, though with the added price, it definitely won't be worth it.
GM is already planning to cut Envision imports to just 35,000 vehicles this year. It might stay that way, considering the trade dispute's end appears to be nowhere in sight.