China Auto Imports Declined Before Tariff Cuts

Forex News

According to CADA (China Automobile Dealers Association), China’s car imports dropped 87.1% in June to 15,000 vehicles, comparing to 2017. That happened because automakers delayed shipments before tariff reduction on foreign-made vehicles from 25% to 15% became effective. Overall sales of imported autos during the first half of 2018 lowered 22.1% yoy to 451,971 vehicles. In 2017, China imported 1.25M vehicles, said China Association of Automobile Manufacturers.

In July, tariffs on cars, imported from the US were increased to 40% on trade tension. Director of the China Automobile Dealers Association's import committee, Wang Cun reported that: "June was the most impacted month," and: "Many car dealers held back their import orders and decided not to import until July 1".