Follow-up to the "Shock" of US Imported Car Tariffs: Terminal Market Enters Stable Period, Durant Stores "Suspend Operations"

After China and the US mutually reduced tariffs, the impact on imported luxury vehicles originally produced in the US has evolved from an initial "all-around shock" to an increasingly pronounced differentiation effect.

"Due to the tariffs, we stopped accepting car orders starting in April. We just received a notice about 'restructuring,' and currently, all operations are suspended," a salesperson at a Beijing-based Durant Guard dealership told Cailian Press on May 19. Although the dealership remains open, it has halted new car sales and other operations.

Without careful inquiry, consumers would hardly notice that this is a high-end imported car dealership that has already "suspended operations" — the store's interior is fully intact, with a series of peripheral products neatly placed beside a large screen that continuously loops Durant Guard's brand promotional video. However, judging from the customer traffic, the dealership is already quite desolate. During the nearly one hour the reporter stood there, only one customer briefly peered in at the entrance, and no one else entered the store to inquire about cars. "This is the current situation, and it's unclear what will happen in the future. However, those who previously placed orders are not affected and can still take delivery of their vehicles gradually."

The "restructuring" mentioned by the aforementioned salesperson stems from a recent response from GM China. Since the outbreak of the "tariff war," news about the dissolution of GM's imported car business has surfaced multiple times. GM recently stated that Durant Guard is GM's high-end imported car platform for introducing iconic products, with imported car sales accounting for less than one-tenth of one percent of GM's total sales in China. "Due to significant changes in the economic situation, the company has decided to restructure Durant Guard's import business and correspondingly optimize GM's operations in China."

In contrast to Durant Guard's direct suspension of operations, most mainstream luxury brands have chosen to enter a period of smooth transition. After visiting several 4S stores selling luxury imported cars originally produced in the US a few days ago, the reporter found that "direct price increases" had become a common practice in the end-use market at that time. However, a week later, the situation took a "reversal."

"Although the GLE 450 model is produced in the US, the current price is very reasonable, basically in line with the preferential policies before the 'tariff war'," a salesperson at a Mercedes-Benz 4S store told the reporter. Apart from Mercedes-Benz, the situation is similar for other luxury brands. BMW and Lincoln 4S stores have indicated that despite many uncertainties about the future, the tariff issue will not affect prices for the time being. "It's hard to say what will happen next. We also tell potential consumers to buy as soon as possible because prices definitely won't increase now," a BMW 4S store salesperson said.

It is expected that the "tariff war" will have a direct impact on China's imported car market, with imports likely to decline significantly in H1. Previous data showed that China's vehicle imports had been declining at an average annual rate of around 8% from 1.24 million units in 2017, dropping to only 800,000 units by 2023. In 2024, 700,000 vehicles were imported, representing a 12% YoY decrease. From January to March 2025, 95,000 vehicles were imported, marking a 39% YoY decline. "This is a rare significant drop in vehicle imports from January to March in recent times," said Cui Dongshu, Secretary General of the China Passenger Car Association.