logo
While The US Is Closed To Chinese Cars, Australia's Door Is Wide Open

While The US Is Closed To Chinese Cars, Australia's Door Is Wide Open

Forbes7 hours ago
The US's America First policy and its high tariffs are keeping Chinese cars out of the market. Tariffs as high as 100% have been slapped on Chinese autos, especially EVs making them prohibitively expensive for American showrooms.
Australia already boasts some 23 Chinese brands on its shores
But while America's doors are still closed to cars from China, several countries including Russia, Mexico, Australia, Belgium, Norway and the UAE have become huge testing grounds for Chinese cars. While both Russia and Mexico currently import around 30 different car brands from China, Australia is presently hovering at around 23 brands and more are expected to arrive in the next year or so.
Let us focus on Australia here as it it the closest to the US in terms of cultural origins, cultural diversity, lifestyle and language. Australia expects around 40% of all cars sold there by 2035 to be Chinese, significantly outperforming established Japanese and Koreans brands. In fact, if the US ever wanted to see what a Chinese car onslaught looked like, they just need to look at the Australia car market.
Chinese brands making waves Downunder include big names like BYD, Geely, GWM, and Chery, as well as newer entrants such as Jaecoo, LDV, Leapmotor, Deepal, Avatr, Foton, Livan and Zeekr. MG, while technically a British brand, is also now owned by a Chinese company (SAIC) and is a significant player in the Australian market.
While some brands offer hybrids and plug-in hybrids to appease those buyers not yet ready to make the switch to full-electric, most Chinese cars sold in Australia are electric.
The Australian market is seeing a surge in Chinese car brands due to several factors with the first being that the country does not place tariffs on car imports. Other reasons include competitive pricing—especially when compared to rivals like Japanese and Korean cars, more pleasing designs and features, improved safety levels, increased manufacturing capacity in China, and growing consumer interest in electric vehicles.
In fact, BYD is the biggest selling Chinese carmaker in Australia. In June 2025, BYD achieved a top five sales result of 8,156 units—which is a 367% increase over sales of June last year—becoming the first Chinese brand to do so, largely driven by the Shark 6 pickup truck, or ute according to WhichCar. BYD also surpassed Tesla in total sales in Australia for the first half of 2025 according to The Sydney Morning Herald.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Nvidia and AMD to pay 15% of China chip sale revenues to US government, FT reports
Nvidia and AMD to pay 15% of China chip sale revenues to US government, FT reports

Yahoo

time3 minutes ago

  • Yahoo

Nvidia and AMD to pay 15% of China chip sale revenues to US government, FT reports

(Reuters) -Nvidia and AMD have agreed to give the U.S. government 15% of the revenues from chip sales in China, as part of an arrangement with the Trump administration to obtain export licenses for the semiconductors, the Financial Times reported on Sunday. Reuters could not immediately verify the report. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

A 240-year-old Swiss watchmaker raced to beat Trump's tariff deadline
A 240-year-old Swiss watchmaker raced to beat Trump's tariff deadline

Yahoo

time3 minutes ago

  • Yahoo

A 240-year-old Swiss watchmaker raced to beat Trump's tariff deadline

By Helen Reid LONDON/GENEVA (Reuters) -As a U.S. tariff deadline neared last week, Swiss watch manufacturer DuBois et fils rushed to ship five high-end watches worth thousands of dollars each to the United States. By Wednesday the firm had blocked orders on its U.S. website. Now CEO Thomas Steinemann is calculating the price hikes he'll need to make. The whipsaw week for the Swiss horologist, as U.S. President Donald Trump slapped a surprise 39% trade tariff on imports from the European country, underscores how businesses big and small are being forced to adapt and rejig operations under pressure. DuBois et fils, founded in 1785, accelerated shipments on Monday from its factory in Muttenz, near Basel, to get through customs before the U.S. tariff on imports from Switzerland came into force. The 39% rate - up from the baseline tariff rate of 10% since April - took effect at 0400 GMT on Thursday after the Swiss president came back from an emergency trip to Washington without a deal. "For the watch industry it's a huge disaster," said Steinemann, who explained that he'd blocked U.S. orders because prices would need to be recalculated to account for tariffs. The firm would not soak up the hit, he said. "The U.S. was a big driver in the last two years. Now this kills a lot of the business." His U.S. prices were going to rise, he added. The DuBois DBF008 watch, for example, would likely go up to $14,500, from $10,800. The United States accounts for around 15% of the global sales of DuBois, which sells directly to U.S. consumers. The wider Swiss watch industry is feeling the pinch, planning price hikes, pausing U.S. orders, and looking for alternative markets for its expensive, hand-made timepieces. The country is home to brands such as Rolex, Patek Philippe, LVMH-owned Tag Heuer, Swatch-owned Omega and IWC Schaffhausen, owned by Richemont. The U.S. accounted for 17% of Switzerland's total 26 billion Swiss francs ($32 billion) of watch exports last year, according to the Federation of the Swiss Watch Industry. Exports to the U.S. surged in April as watchmakers frontloaded shipments ahead of a first tariff deadline. 'LOSS FOR THE UNITED STATES' Combined with a weaker dollar against the Swiss franc, the tariff hike will make Swiss watches some 65% more expensive on average for U.S. consumers, estimated Amarildo Pilo, owner of Pilo & Co watchmakers. He said that many brands had already shipped some product to the U.S. in advance, but warned this was not a long-term solution. The United States had been a market that everyone was focusing on recently and wanted to develop, he added. "My personal opinion is that what's going to happen is that Americans will no longer buy watches in the United States," said Pilo, who is also founder of the Swiss Independent Watchmakers Pavilion, which represents 28 independent brands. "But those who want them and who like watches will buy them elsewhere. So honestly, it's a loss for the United States." The tariff hit is a wider broadside against Switzerland, even if talks are continuing with the hope of eventually striking a deal. Trump argues that tariffs are needed to undo trade distortions and bring manufacturing back to the United States. "The impact could be very strong on the Swiss economy," said John Plassard, partner and head of investment strategy at Cite Gestion Private Bank. Analysts estimate the tariffs could knock between 0.3% to 0.6% off Swiss GDP growth over the next year. "It will cut the potential growth in half, I would say. So the indirect impact could be more unemployment in the Swiss economy," said Plassard. 'GAME OVER NUMBER' In Sacha Davidoff's vintage watch boutique in Geneva, there was a sense of shock. Many in the country had expected a deal similar to or better than the 15% that will be levied on most imports from the European Union. Switzerland is outside the bloc. "Right now we're living the nightmare that we had hoped wouldn't come to be. You kind of like wake up in the morning and you're like, 'no, that wasn't real'," Davidoff told Reuters, saying that 39% was a hammer blow for exports. "(It) is kind of a 'game over' number for us. It basically cuts the U.S. market as a possibility for export of vintage watches entirely." He hoped, however, that the situation would be resolved eventually. "I think that this is just going to be a difficult period where we're basically going to have to put the American market kind of on pause and focus on domestic sales," he said. ($1 = 0.8070 Swiss francs)

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store