Tag: Trade

By on December 31, 2020

tiresTires from South Korea, Taiwan, Thailand and Vietnam are about to get more pricey, as the U.S. Department of Commerce (DOC) announced yesterday preliminary duties in the antidumping duty (AD) investigations of passenger vehicle and light truck tires from those countries.

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By on November 10, 2020

german flag and reichstag

Germany is eager to see the United States abolish trade barriers implemented by President Donald Trump now that it looks like Joe Biden has won the 2020 election. While that could all be undone by the sudden influx of legal actions taken by the Trump campaign as presumptive evidence of election impropriety streams in, Germany would still like to get the ball rolling on trade with the Democrats.

The nation’s automotive industry is petitioning leadership in the U.S. and European Union to align technical/regulatory standards and minimize the existing trade barriers. The German Association of the Automotive Industry (Verband der Automobilindustrie) or VDA has already endorsed the proposal with the lobby group’s president confirming its position in a recent webcast hosted by the Frankfurt business media club ICFW (Internationale Club Frankfurter Wirtschaftsjournalisten).

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By on August 21, 2020

Keen to sweep as much attention away from the 2020 Democratic National Convention as possible, President Donald Trump campaigned in Old Forge, PA while Joe Biden accepted the Democratic nomination at a largely virtual event. You’ll be forgiven for not having watched either, as both amounted to little more than bashing the opposing side with nary a hint of actual policy. But Trump came the closest to offering something truly substantive, reiterating threats to companies to bring factory jobs back to the U.S. or suffer the consequences.

The president insisted that manufacturers would soon find themselves in a situation that benefits America whether they complied or not. “We will give tax credits to companies to bring jobs back to America, and if they don’t do it, we will put tariffs on those companies, and they will have to pay us a lot of money,” Trump said during the event. (Read More…)

By on July 23, 2020

2021 Ford Bronco Sport

As both the United States and the country to its south grapple with the challenge of returning to normal amid a pandemic, Ford Motor Company faces another problem resulting from punting production over the Rio Grande.

Just as local laws aimed at slowing the spread of the coronavirus can stem the flow of essential engines, local protests can cut off the flow of everything. (Read More…)

By on June 1, 2020

Over the past decade, regular reports that Chinese automakers were readying a major push into the North American market became commonplace. We started seeing them move out of trade show basements to take up some of the most desirable real estate on the main floor. While some of the product clearly wasn’t yet up to snuff, one could imagine budget-focused products flooding the U.S. and Canada after a few years of polish. However, the last time that seemed like a likely scenario was 2018.

Chinese brands are still trying to break into the untapped North American market; some even have physical office space set up within the United States. However, Sino-American relations have soured dramatically over the past few years, and new financial hurdles have made wrangling a new market extremely difficult.  (Read More…)

By on May 19, 2020

bmw

The UK auto industry pales in comparison to the nearby German juggernaut, though Britons looking to purchase a new vehicle in the coming years might discover their preferred Teutonic ride has suddenly jumped in price.

That’ll be the reality come 2021 if the UK can’t come up with a new trade deal with its newly distant European Union neighbors. Post-Brexit, the country has no other choice at the current time but to impose default World Trade Organization tariffs of 10 percent on all European-built vehicles. (Read More…)

By on January 31, 2020

BMW Group has delayed the development of a next-generation Mini Cooper, citing a need to reduce cost and comfortably navigate Britain’s trade relations with the European Union after Brexit.

Considering Europe has had since June of 2016 (when the referendum took place) to figure all this out, it feels silly that the region is still in a panic. Yet that’s reality in which we live. Despite the United Kingdom voting to withdraw from the European Union years ago, the decision received an immense amount of pushback. Negotiations stalled, arrangements went unmade, and the UK eventually voted in a gaggle of Conservatives in the last election — giving them a strong majority in Parliament.

That new political makeup, which includes Prime Minister Boris Johnson, meant Brexit could finally happen. But it doesn’t undo the wasted years that failed to produce a comprehensive trade deal between the UK and EU, or the resulting complications. (Read More…)

By on December 20, 2019

us-capitol, public domain

The House of Representatives approved a new North American trade deal on Thursday, causing many to breathe a sigh of relief. The House vote sends the measure to the Senate, with the probable outcome of it being pushed through.

When is another matter, however, as Senate Republican leader Mitch McConnell said the measure would likely be taken up after an impeachment trial. That means we’ll be waiting until 2020. Still, the U.S. Mexico Canada Agreement (USMCA) is one step closer to replacing the North American Free Trade Agreement (NAFTA). Barring a governmental curveball, the automotive industry now knows what to expect. (Read More…)

By on December 6, 2019

Replacing the North American Free Trade Agreement (NAFTA) has proven difficult for the Trump administration. Trade negotiations have progressed slowly, with Mexico, Canada, and the United States rarely seeing eye-to-eye on most issues. Some of the biggest problems have dealt with content requirements.

The latest hangup stems from a rule requiring 70 percent of the steel and aluminum found in North American vehicles to come from the same continent in order to ensure a duty-free existence. Mexico isn’t keen on the proposal — as it sources a large amount of metal from Brazil, Japan and Germany. Meanwhile, the United States is attempting to use the inclusion to appease the United Steelworkers union and keep labor-focused jobs in the country.  (Read More…)

By on October 30, 2019

The Trump administration has reportedly expressed an interest in deciding where and how automotive manufacturers do their business if they want to secure duty-free deals under the United States–Mexico–Canada Agreement (USMCA) that’s positioned to replace NAFTA. According to Bloomberg, there’s currently a discussion taking place between administration officials, congressional staff, and domestic and foreign automakers regarding the context of the legislation that lawmakers will ultimately have to vote on. The White House is said to want highly specific language that would allow it to select production rules unilaterally.

Considering how messy things have gotten with China, it could be useful to have extremely clear trade language and some direct oversight of businesses with global interests. But critics are worried the strategy could bring U.S. trade policy closer to the rigid policies already in place in the People’s Republic — a country America has attempted to distance itself from due to its ludicrous levels of government intervention.

The real fear is that the government could use this to give one manufacturer better treatment than another — cutting it a sweet deal for building in a politically advantageous area, for example. While plausible, we can’t confirm something that’s largely speculative.  (Read More…)

By on October 8, 2019

The United States and Japan have signed a limited trade deal that’s been simmering for some months now. President Donald Trump has been eager to secure a place where American farmers can send their goods now that the trade war with China has diminished American dealings with that market. In return, Japan wanted assurances from the U.S. that it will not impose any new automotive tariffs, as cars remain one of its chief exports.

While the island nation didn’t get the guarantee in writing, Prime Minister Shinzo Abe claims he received a verbal promise. This is to be the first part of a broader trade deal between the two countries.  (Read More…)

By on September 5, 2019

Mary Barra with Chevrolet Cruze, Image: GM

General Motors CEO will meet with U.S. President Donald Trump and White House officials on Thursday to discuss the state of the automotive industry, trade issues, and the fuel economy rollback. We imagine it’ll go much differently than their first meeting in Washington.

Perpetually concerned with economic threats arising from China, Trump has come down hard on automakers in the past. These days, his favorite punching bag happens to be GM. The automaker’s strong presence in China has forced it to make commitments there. On this side of the Pacific, the automaker has shuttered production facilities in Michigan, Ohio, and Maryland while continuing to manufacture vehicles in Mexico — something the UAW has been exceptionally critical of going into contract negotiations.  (Read More…)

By on August 27, 2019

Image: FCA

There’s good news if you’re a U.S. farmer, however. A preliminary deal reached between the two countries this week would keep existing auto tariffs in place, though President Donald Trump claims there’s still the possibility of a hike.

It was the threat of import tariffs that brought Japan to the table following the U.S.’s 2017 pullout of the Trans-Pacific Partnership, and the agreement in principle announced this week keeps new tariffs off the table, though auto groups continue demanding action on an issue Lee Iacocca used to rail about: reciprocity. (Read More…)

By on July 17, 2019

The United States and Japan are working on a trade deal revolving around agriculture and automobiles. As much as you’re probably dying to hear about the farming aspects, we’re going to focus a bit more on the latter. Boiled down, the arrangement is reported to deliver preferential treatment for U.S. farmers hoping to expand into the Japanese market while lessing duties on Japanese auto parts.

President Donald Trump has noted in the past that he’s displeased with any country holding a trade surplus over America’s head and Japan has one. Last year, it amounted to $67.6 billion in goods — most of it relating directly to automobiles. This initially encouraged the president to threaten tariffs on Japanese imports. However, Japan’s close ties to the United States bought it some time and any legitimate danger has been postponed to encourage trade discussions.  (Read More…)

By on June 14, 2019

Image: FCA

Large U.S. companies hoping to side-step the 25 percent tariff on Chinese goods by appealing to the government aren’t having much luck. Since July, the U.S. has imposed the tariff on billions of dollars worth of goods from the People’s Republic, leading to financial fallout for automakers heavily invested in the region.

And it seems no one complained more than General Motors. Tesla, Nissan, Fiat Chrysler, and Uber also sent in official gripes in the hopes of receiving an exemption, only to have the door hit them on the way out. (Read More…)

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