Supply Chain Research

The Chinese government, as widely expected, has cut the import duty on passenger vehicles to 15% from 25%. It has also reduced the tariffs on auto-parts to as little as 6%. Chinese imports of cars had already climbed 10% in the three months to February 28 vs. a year earlier and passenger vehicles more broadly surged 21% higher in the first four months of the year. While it is tempting to see the cut in duties as part of the relaxation of trade tensions with the U.S. it will benefit manufacturers from elsewhere too. Exports from the EU in the 12 months to February 28 accounted for 51% of ...