Car parts trade tariff threats

Tesla recently complained that the U.S.-China trade war hurts its ability to import needed parts from China as components for its cars. hanse data show that China has been increasing its share in U.S. motor cars parts imports second only to Mexico between 2007 and 2017. Global success factors dominate but differential regional supply chain patterns have emerged.. 

China increased its share in U.S. car parts, HS 8708 motor vehicles; parts and accessories, from 8.3 percent in 2007 to 14.9 percent in 2017. Mexico remains the largest and fastest growing force in car parts increasing its share from 21.8 percent in 2007 to 34.5 percent in 2017 (Figure 1). Car parts expanded their share in total U.S. imports from 2.3 percent in 2007 to 2.8 percent in 2017 trailing motor cars (HS 8703 motor cars and other motor vehicles; principally designed for the transport of persons) with a share in total U.S. imports of 6..8 percent and 7.5 percent, respectively .

Figure 1. U.S. car part imports
 

EU15 imports in car parts are more important than in the U.S. representing 5.6 percent of total EU15 in 2017 and 6.1 percent in 2017. China is a smaller player representing 3 percent of EU15 imports in car parts.. 

Japan imports in car parts are relatively small representing 0.9 percent of total Japanese imports in 2007 and 1.2 percent in 2017. Similarly, car imports represent 1.2 and 1.7 percent of total imports, respectively. China has by far the dominant and fastest growing share in Japanese car part imports increasing from 22.5 percent in 2007 to 36.3 percent in 2017 (Figure 3).

China’s imports in car parts are similarly small representing 1.1 percent in 2007 and 1.6 percent in 2016.  Germany maintains the largest share in China’s car part imports with 30.7 percent in 2016.. Korea is the fastest growing country with its share in car parts increasing from 12.2 percent in 2007 to 17.0 percent in 2016.

Figure 2. EU15 car part imports
 

Figure 3. Japan car part imports
 

Figure 4. China car part imports
 

The car part sector shows regional supply chain patterns. The comparison of the fastest growing countries in U.S., EU15, China and Japan imports shows common global success factors in car parts. Mexico and Korea are the two countries among the fastest growing in all markets. China, Czech Republic, Poland, Vietnam and Thailand compete successfully in 3 markets; Romania, Slovakia and Hungary in 2. Regional patterns also exist like Austria for the EU15, Germany and the U.S. for China and Spain, Sweden and Malaysia for Japan. 

Tags:

Other Blogs

30-Dec-2018

The scheduled exit from the EU by the UK is set to diminish EU-UK trade relations. However, UK-EU trade relations have cooled well before the 2016 Brexit vote. hanse data show that since prior to the global financial and economic crisis in 2007 the UK has become an increasingly less important trading partner for the EU.

Read More
15-Dec-2018

The New York stock market ended down on 14 December at least amid mounting concerns about an escalating U.S- China trade war. It serves as an urgent reminder, how much China has been increasingly shaping U.S. trade relations. hanse data show that during the past 30 years, China increased its share in total U.S. imports from 1.6 percent in 1987 to 22.0 percent in 2017.

Read More
13-Dec-2018

The EU-Japan free trade agreement marks a period of declining trade relations in particular in the most dynamic trade sectors. On 12 December, the European Parliament ratified the EU-Japan Economic Partnership Agreement and the EU-Japan Strategic Partnership Agreement to come into effect in February 2019. The agreement will remove the vast majority of residual duties, remove regulatory barriers on car exports and open up new sectors like agriculture. hanse data show that the trade patterns between the two signal the need for a revival.

Read More
10-Dec-2018

The EU has greatly neglected Africa as a trading partner. On 10-11 December, the EU organised a conference in Harare to raise awareness on the Economic Partnership Agreement between the EU and Africa. On 12 September, European Commission President Jean-Claude Junker announced that Africa “needs true and fair partnership and we Europeans need this partnership as much.”

Read More