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Transcript

00:00:01
>> Beijing resident Lu Dong Sheng loves driving his American-made Jeep, but he knows he may soon see fewer of them on the road.>> Those potential buyers may change their mind due to a price hike.>> Starting Friday, just after midnight in the US, midday in China, a Jeep imported from America like this one will cost roughly $30,000 more than it costs in the US.
00:00:32
That's when 25% tit for tat tariffs go into effect as the world's two biggest economies fight it out. And it's not just the trade spat between China and the US that has automakers on edge. Threats of higher tariffs spreading to other countries are sending global automakers racing to their nearest port to get vehicles on ships as fast as they can.
00:00:53
Reuters auto correspondent Nick Carey has been talking to US port operators and looking at the latest data from May.>> Between Baltimore, Georgia and Jacksonville, we were talking around about 25,000 additional cars for the month of May. So there's an awful lot more cars coming in, in some cases, in some ports, anywhere up to 20% and above, an increase over what came in May of 2017.
00:01:26
>> And some automakers from Europe, like Mercedes Benz owner Daimler and BMW, are getting squeezed on the way in and the way out. Now only do they send German made luxury cars to the US, they build SUVs inside America, many of which are sent to China and subject to a Made in America tax.
00:01:49
Domestic automakers are not immune.>> Ford said today that they are not going to raise prices in China on the vehicles that they imported to China.>> Just as tariffs are going up on US vehicles in China, European ones will face lower tariffs, which means Dong Shang may start to see more European SUVs and pickup trucks on China highways than his beloved Jeep.