GM Follows Ford, Halts U.S. Built Vehicle Shipments To China

Almost exactly one month ago, Ford stopped shipping the Ford F-150 Raptor, Ford Mustang, Ford Bronco, and Lincoln Navigator to China after that country imposed retaliatory tariffs on goods coming from the U.S. Earlier this month, the U.S. and China reached a deal that temporarily lowers U.S. tariffs on most imported goods from China from the current rate of 145 percent down to 30 percent, while China’s 125 percent tariffs on American goods will drop to 10 percent for the next 90 days as the two sides work to hammer out a new deal. In the meantime, Ford’s cross-town rival, General Motors, has opted to stop shipping U.S. built vehicles to China.

According to GM Authority, the General has halted U.S. to China exports via its premium platform, The Durant Guild, which it’s now in the process of reorganizing. Prior to this move, The Durat Guild was tasked with importing a variety of models into China, including the Chevy Tahoe, GMC Yukon, Chevy Corvette, GMC Hummer EV Pickup and SUV, and the Cadillac Celestiq. Each of those models is produced at different locations in the U.S. and then shipped to China.

“Imported car sales account for less than one thousandth of GM’s total sales in China,” GM China said in a statement. “Due to significant changes in the economic situation, the company decided to reorganize The Durant Guild’s import business and optimize GM’s operations in China accordingly.” The company added that it’s laying off 200 workers as a result of this reorganization, and existing Durant Guild locations are now set to close.

It’s unclear what GM will ultimately decide to do even if the U.S. and China reach a more permanent and favorable trade deal, but there is a lot of optimism that the two sides will indeed get to that point. As Ford Authority reported earlier this month, Ford stock (along with GM and Stellantis) surged following the announcement of the temporarily reduction in tariffs, in fact.