Is a 125% tariff really imposed on fasteners exported to the United States? This is not the case. The export tariff on fasteners such as bolts and screws to the United States is actually 70%, while that on nuts is 52.5%. Lao Yang from Huanet also provided a comprehensive interpretation and analysis of the tariff situation on fasteners.
Although the tariff levied on exports for the fastener industry is not as high as 125%, it is still a pressure for many enterprises that need to import parts.
Take the automotive industry as an example. Many Chinese automotive manufacturing enterprises rely on imported components from the United States, such as key components of engines, high-end sensors and advanced electronic control systems, etc. Before the trade war, the import tariffs on these components were originally at a relatively stable level. However, with the United States imposing additional tariffs, the situation took a sharp turn for the worse.
After the new tariffs are imposed, the total tax rate may jump from the original 20%-30% to 54%-66%. This means that for a car, the cost of its imported American components was originally 100,000 yuan. According to the original tax rate, the tariff expenditure was approximately 20,000 to 30,000 yuan. But now, the tariff may be as high as 54,000 to 66,000 yuan, and the cost has increased several times instantly. In order to maintain a certain profit margin, enterprises have to pass on this increased cost to the terminal selling price, which may cause the increase in the terminal selling price to exceed 200,000 yuan. As a result, the price competitiveness of automobiles in the market has dropped significantly, and their sales have been severely affected accordingly.
