Chinese Customs Delays U.S.-Built Mercedes SUVs

August 10, 2018 at 12:09 PM

U.S.-made Mercedes-Benz SUV/crossover vehicles fare being delayed by Chinese customs officials because of an unspecified brake-related safety issue, Reuters reports.

The delay comes as the U.S. and China continue to ratchet up their trade war. The dispute has prompted China to hike tariffs to 40% on vehicles imported from the U.S. Cars imported from other countries pay a 15% tax.

Reuters says the delay involves an undisclosed number of Mercedes GLE and GLS models that were produced at Daimler AG’s assembly plant in Tuscaloosa, Ala., between May 4 and June 12. The news service cites an apparent customs document being circulated on Chinese social media.

Daimler tells Reuters it is aware of the brake issue, which it describes as “entirely technical,” and is working with Chinese authorities to resolve it. Like other carmakers, Daimler has warned that its earnings this year are likely to be reduced by the escalating trade battle.