How Volvo overcomes U.S. tariffs on its vehicles made in China

Bill Russo, CEO of advisory firm Automobility Limited, which is based in Shanghai, said the Duty Drawback program offers a way for Chinese-affiliated automakers to "bridge the moat" of U.S. import tariffs. Industry analyst Michael Dunne said the drawback program threatens to "throw the doors open" to imported Chinese-made vehicles by creating an end run around the tariff. Unlike U.S. foreign free trade zones and other tariff avoidance strategies, the drawback program is retroactive, allowing automakers to recoup duties paid on already imported vehicles. "You're taking the (China tariffs) and using them in a way that brings American jobs." But few automakers import fully assembled vehicles from China.