Text | Observe Jun
The tax rate has been increased to 100%! The United States has a complete showdown, and BYD and Huawei are in trouble!
It's time to come or it's coming! I believe many people still have the impression that US Treasury Secretary Yellen and Secretary of State Antony Blinken talked about the issue of Chinese trams one after another during their visits to China. According to what they say: Chinese trams are overcapacity, and they are dumped abroad at low prices, so the White House will consider measures to restrict Chinese trams from entering the American market.
Anyone with a discerning eye knows that the so-called overcapacity and low-price dumping are just excuses for the United States. You know, according to the forecast of international third-party institutions, the international tram market is just getting on the right track, and there is still a large market demand, and the problem now is not overcapacity, but insufficient capacity.
However, although Lao Mei's excuse was ruthlessly exposed, but unfortunately, Lao Mei's face was indeed too thick-skinned, and on May 14, the United States decided to have a complete showdown and announced an increase in tariffs on Chinese trams, from the original 25% tariff to 100% tariff. Although, we are also shocked by the thickness of Lao Mei's skin, but we have to admit that with the implementation of this policy, BYD and Huawei are in trouble.
Needless to say, BYD is the king of the domestic tram market, and Huawei's strength is also very strong, although it does not directly build cars, but relying on technical cooperation, it has also won a large market share in China. With the ambitions of BYD and Huawei, they must be unwilling to only do the domestic market, so it is inevitable to go overseas.
But now, with the United States raising tariffs on Chinese trams to 100 percent, it means that the United States has completely closed the door for BYD and Huawei to enter the market.
Some people may wonder, isn't it just an increase in tariffs? Is the impact really that big? Let's put it this way, assuming that the manufacturing cost of a tram is 190,000, plus services such as freight and insurance, the cost of the car is about 200,000, if a 25% tariff is levied, it means that the car needs to be handed over to the United States for 50,000 tariffs to enter the U.S. market, so that if the car wants to make money, the price must be sold to more than 250,000.
But now, the tax rate has been increased to 100%, which means that the import tariff has directly become 200,000, so that, plus the manufacturing cost, a Chinese tram in the United States will have to sell for more than 400,000 yuan to make money. Obviously, with a 100% tax rate, Chinese trams will completely lose their competitiveness in the US market, unless Chinese companies are willing to sell their cars at a loss, but this is obviously unrealistic.
It can only be said that this move of the United States is indeed too ruthless and too domineering, and it has cut off the possibility of Chinese trams entering the American market in one fell swoop. As the United States completely tore its face, many domestic netizens excitedly said that countermeasures should be taken to impose 100% tariffs on American cars and Apple products.
I don't know what you think about these netizens' proposals, but I personally think that there is indeed a certain reference role, but there is no need to be too extreme, just need to appropriately increase the tariffs on some American products.
In addition, countless facts in the past few years have also proved that for a country like Laomei and the United States, there is not much meaning in tolerating and compromising. On the contrary, if you blindly choose to compromise, the result may be that you will be eaten by others until you don't even have bones. What do you think?