US Car Tariffs

The US has low average tariff rates and no VAT or national sales taxes. Approximately 96 percent of U.S. merchandise imports are industrial (non-agricultural) goods. The United States currently has a trade-weighted average import tariff rate of 2.0 percent on industrial goods. One-half of all industrial goods entering the United States enter duty free.

The US imported $40 billion worth of Japanese-made passenger cars in 2017. It also imported $20 billion worth of German-made cars in the same year.

GM sold 3 million cars in the US last year, but it made just 2.2 million vehicles in the country. That means it imports thousands of models each year.

Currently, vehicles shipped from Europe to the US face a low 2.5% tariff. Meanwhile, cars built in America face a 20% tariff plus a 10% VAT tax when they're shipped to the European Union.

The Chinese Finance Ministry said Tuesday that it will cut import duties on passenger vehicles from 25% to 15%, starting July 1.

http://money.cnn.com/2018/05/24/news/car-auto-tariffs-us-germany-japan-toyota-volkswagen/index.html

Norb Leahy, Dunwoody GA Tea Party Leader