Obama Takes on China Again; This Time for Autos (GM) (F)
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Down)Dividend Yield: 3%
Revenue Growth %: 0.0%
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President Obama is busting out the steamroller again, trying to level out that playing field. This time, its something most Americans can get behind.
Earlier today, Obama pressed the World Trade Organization (WTO) to force China to eliminate duties on auto imports from the U.S., saying it skews the balance of trade.
According to data from one Obama senior official, China imposes duties on about 80 percent of U.S. cars imported to China -- about 92,000 at last reading -- which amounts to $3.3 billion each year.
The duties imposed by China cover U.S.-manufactured cars and SUVs with engine capacity of 2.5-liters or better. Beijing has accused the U.S. of selling the autos at below fair value. Import tariffs imposed are as much as 21.5 percent with duties of 12.9 percent related to unfair government subsidies.
Action by Obama is the second this year; earlier in 2012, he urged the WTO to force China to ease rare earth export restrictions.
Those following all this tariff/duty news know that the U.S. is mulling some significant duties for Chinese makers of solar cells as an anti-dumping measure (selling at below market value).
Despite the move, Ford (NYSE: F) and General Motors (NYSE: GM) are melting into negative territory. Both those automakers already have partners in China they work with to produce vehicles and avoid excess tariffs.
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Earlier today, Obama pressed the World Trade Organization (WTO) to force China to eliminate duties on auto imports from the U.S., saying it skews the balance of trade.
According to data from one Obama senior official, China imposes duties on about 80 percent of U.S. cars imported to China -- about 92,000 at last reading -- which amounts to $3.3 billion each year.
The duties imposed by China cover U.S.-manufactured cars and SUVs with engine capacity of 2.5-liters or better. Beijing has accused the U.S. of selling the autos at below fair value. Import tariffs imposed are as much as 21.5 percent with duties of 12.9 percent related to unfair government subsidies.
Action by Obama is the second this year; earlier in 2012, he urged the WTO to force China to ease rare earth export restrictions.
Those following all this tariff/duty news know that the U.S. is mulling some significant duties for Chinese makers of solar cells as an anti-dumping measure (selling at below market value).
Despite the move, Ford (NYSE: F) and General Motors (NYSE: GM) are melting into negative territory. Both those automakers already have partners in China they work with to produce vehicles and avoid excess tariffs.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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