New York (CNN Business)China is already the largest and most important market for the American auto industry. Removing tariffs on American cars exported to China isn’t that big a deal.
Almost all automakers with plants in the United States already have factories in China, too. Automakers prefer to build near to where they sell vehicles. Building cars in China to serve Chinese buyers, for example, is cheaper than building them in the United States and shipping them overseas.
So automakers probably won’t export significantly more cars to China from American plants if and when China removes its tariff on auto imports. President Donald Trump announced
late Sunday night that China would remove its 40% tariff on American cars. The details are not yet known. Chinese government officials would not comment on the deal.