China’s Tariffs on U.S. Autos Backfired, Study Finds

[IsailedawayfromFR]

China’s retaliatory trade tariffs have targeted U.S. automakers but Chinese consumer responded by purchasing more cars imported from the U.S., a recent economics study found.
When the U.S. began raising tariffs on Chinese-made goods in 2018, China responded by raising tariffs on cars and parts imported from the U.S. The results, however, were not what was expected.

Using automobile sales data in China, Yanlai Chu of the University of China’s Renmin Business School and Junhong Chu of National University of Singapore’s business school found that the tariffs actually increased the sales of cars imported from the U.S.

The economists write in their paper:

We find that the retaliatory tariffs did not deter the sales of U.S. imports. Instead, sales of U.S. imports increased by 9 percent relative to non-U.S. imports during the retaliatory period, which counters the intended effect of the retaliatory tariffs and implies the failure of the retaliatory tariffs,” the economists write in their paper. The Unintended Consequences of Tariff Retaliation: Evidence from the Chinese Automobile Market.
https://www.breitbart.com/economy/2019/09/03/chinas-tariffs-on-u-s-autos-backfired-study-finds/

This is called having your cake and eating it too.

[Jazzhead]

This is called having your cake and eating it too.

That reminds me of the government's approach to cigarettes:  tax the heck out of 'em,  and then reap the Social Security savings when smokers die young. 

[IsailedawayfromFR]

That reminds me of the government's approach to cigarettes:  tax the heck out of 'em,  and then reap the Social Security savings when smokers die young.

So people are dying early due to driving American made automobiles?

Who knew?

[OfTheCross]

This was a no-lose situation for everyone involved. I imagine that the people willing to pay a premium for a US car in China have the means to afford it. We're still getting our sales, and China is getting their taxes...

[IsailedawayfromFR]

This was a no-lose situation for everyone involved. I imagine that the people willing to pay a premium for a US car in China have the means to afford it. We're still getting our sales, and China is getting their taxes...

You forgot this cannot be beneficial for the Chinese automaker.

[DCPatriot]

That reminds me of the government's approach to cigarettes:  tax the heck out of 'em,  and then reap the Social Security savings when smokers die young.

If the Left keeps advancing, it wouldn't be long before being more than 75 years old makes you a parasite of Mother Earth.

Wasn't there even a movie plot about something like that?

[DCPatriot]

You forgot this cannot be beneficial for the Chinese automaker.

Not if you consider that perhaps, ... a Chinese car is a 'Ford' or 'Chevy', and the U.S. car is a 'BMW' in their society.   

They're not affected by the nuisance American import, because their sales are rising double digits every year.

...just like post WWII America.

[IsailedawayfromFR]

Not if you consider that perhaps, ... a Chinese car is a 'Ford' or 'Chevy', and the U.S. car is a 'BMW' in their society.   

They're not affected by the nuisance American import, because their sales are rising double digits every year.

...just like post WWII America.

You nailed it.

China sold 28 million cars last year within China and only 267 thousand were made in the US.