Sino-US trade friction has less impact on motorcycle exports

Sino-US trade friction has less impact on motorcycle exports

On April 3, 2018, US local time, the U.S. Trade Representative’s Office announced the list of proposed tax-imposed products in the 301 investigation restriction measures and proposed to impose an additional 25% ad valorem tax on the products in the list. The list of proposals announced this time includes approximately 1300 independent tariff items worth a total of approximately US$50 billion. The list covers aerospace, information and communication technology, medicine, and machinery industries. Among them, motorcycles and mopeds equipped with internal combustion piston engines, displacements from 50 to 800cc and motorcycle accessories and other six codes (87112000, 87113000, 87110030, 87110060, 87115000, 87141000) are listed in this column.

According to relevant data, in 2017, China imported a total of 21,000 motorcycles, an increase of 0.54% year-on-year. Imported more than 250ml of large-displacement motorcycles of 250ml, accounting for 81% of total imports, a year-on-year increase of 1.2%. Imported motorcycles are mainly concentrated in brands such as Halle, BMW, Ducati, Honda, Kawasaki, and Piaggio. The large-displacement market is mainly concentrated in large cities such as Beijing, Shanghai, Jinan, and Chengdu.

At the beginning of April of this year, the United States announced a list of proposed products to be taxed in the 301 investigation restriction measures and proposed to impose an additional 25% ad valorem tax on the products in the list. China exports American motorcycles and ATVs included. Li Bin told reporters that according to customs statistics, in 2017, China exported a total of 9.3 million motorcycles with an export value of approximately US$ 4.67 billion. Exports of US motorcycles accounted for only 2.8% of total exports and accounted for 2% of the total export value. Motorcycle manufacturers have less impact. However, the United States is the largest market for China’s all-terrain vehicles. In 2017, China exported 270,000 all-terrain vehicles, with an export value of approximately US$ 500 million. Exports of US all-terrain vehicles accounted for 44% of total exports, and the total amount of exports was 46%. All-terrain vehicle manufacturers will have a greater impact.

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