Trump Promises Tariffs on All Mexican Goods Starting June 10th

Just when it seemed the trade climate in the North American region was easing, President Donald Trump launched a new salvo late Thursday, promising a 5 percent levy on all Mexican goods crossing the U.S. border if the country doesn’t stem the flow of illegal migrants.

The tariff would land on all Mexican goods on June 10th, ramping up to 10 percent on July 1 before topping out at 25 percent by October. For automakers and those who sell (and buy) the final product, the prospect of a new import levy is the stuff of nightmares.

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Trade War Watch: Automotive Tariffs and the European Union

It’s been nearly a year since President Donald Trump and European Commission President Jean-Claude Juncker kissed and negotiated a temporary truce aimed at buying the United States and the EU time to renegotiate their positions without fear of new tariffs.

Unfortunately, it seems everyone had better things to do following the smooch.

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Thumbs Down: China's GAC Motor Throws U.S. Push Onto the Back Burner

Guangzhou Automobile Group, better known as GAC Motor, has delayed plans to commence sales of Chinese-branded cars in the United States. Apparently, there’s some kind of trade dispute between the the two countries that influenced the company’s decision.

However, back in 2018, GAC Motor was at the North American International Auto Show telling yours truly that it planned to ship product to the U.S. as early as the following year (as PR reps simultaneously requested we stop commenting on the faux tailpipes we noticed on several models).

Months later, GAC revised its business plan. The entry into the America market would come closer to 2020, it said. Now, the automaker claims the trade war has forced it to postpone things even further. This time, there’s no target.

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Auto Tariffs Off the Table for 180 Days, Trump Claims

U.S. President Donald Trump pushed the threat of tariffs on imported vehicles to the background on Friday, announcing a 180-day pause as the country negotiates trade agreements with Japan and the European Union.

The delay comes a day ahead of a Saturday deadline imposed by the Commerce Department. In February, the department delivered the findings of an investigation on whether auto imports represent a national security threat to the United States. The report, not seen by the public, issued recommendations to the White House.

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Trade War Watch: Truce Ends, Tariffs Up, Talks Resume, Trump Tweets

Following an announcement that trade discussions with China had effectively broken down, President Donald Trump increased tariffs on $200 billion in goods from the country on Friday. The White House also issued an ultimatum, saying Beijing had about a month to reach an agreement before the U.S. enacts another 25-percent duty on $325 billion previously unaffected Chinese imports.

White the trade war has been in full swing for most of Trump’s time in office, the White House had indicated that discussions with China were progressing at the start of May. That changed after the People’s Republic returned a modified trade agreement that removed much of the legal language that would have made it binding while reneging on other aspects U.S. negotiators already assumed were settled. President Trump cited the backtracking as the primary reason for imposing a new round of tariffs.

Fortunately, the U.S. International Trade Commission said the tariff hike would only affect $2.3 billion worth of automotive goods — ranking them 10th on the list overall.

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Industry Expects White House to Postpone Auto Tariff Decision 180 Days

Even though the United States plans to impose heftier trade duties on China tomorrow, and vice versa, automakers remain confident that the White House will decide to delay the hiking of other automotive tariffs on national security grounds.

The Commerce Department submitted its Section 232 national security report in February, leaving President Trump until May 18 to act. But manufacturers believe the preferred move will be to postpone the final decision another six months.

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Backtrack Blowback: U.S. Makes It Official, Imposes Steep Tariffs on $200 Billion of Chinese Goods

The United States made good on a threat to impose higher tariffs on a new raft of Chinese goods Wednesday, days after the the People’s Republic reportedly backtracked on nearly every element of a draft trade deal hammered out by the two countries.

The 25 percent tariff officially hits $200 billion worth of Chinese goods on Friday, according to a Federal Register notice. As we told you yesterday, U.S. trade representatives reportedly took issue with China’s reluctance to change its laws to protect the intellectual property rights of U.S. companies.

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Trade War Watch: New Tariffs Coming Down the Pipe After China Pulls U-turn

The United States could impose a 25 percent import tariff on $200 billion worth of Chinese goods by the end of this week — the result of threats issued by President Donald Trump following a reported about-face on the part of Chinese officials negotiating a new trade deal with the U.S.

At the core of the dispute? Intellectual property rights, sources claim.

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Border Backups Follow Trump's Closure Threat

Far away from most American cities, and unbeknownst to most consumers, a transportation bottleneck is stemming the flow of goods from Mexico to the United States.

Major border backups plagued Mexico-U.S. crossings this week, the result of threats made last week by President Donald Trump. While the president eventually backed off after suggesting the U.S. may resort to closing the border in order to stem the flow of migrants into the country, companies didn’t waste time shoehorning as much product into trucks as possible, eager to get their goods across the border.

This, coupled with a mass transfer of U.S. Customs and Border Protection officers from commercial to immigration duties, sent wait times soaring. For automakers (and avocado sellers), this could be a problem.

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How Seriously Should We Take Trump's Mexican Auto Tariff Threat?

On Thursday, President Donald Trump threatened to impose tariffs on cars entering the United States from Mexico if the nation doesn’t assist Washington in dealing with the migrant situation at its southern border. It’s a rather bold ultimatum, coming hot on the heels of claims that the White House was seriously considering closing the border entirely if Mexico could not curtail the flow of illegal immigrants and drugs heading north.

It’s an interesting situation, especially considering both outcomes would upend the automotive industry. But Trump argues that the growing reliance on Mexican manufacturing and proliferation of illegal immigrants has already hurt the United States badly. A contentious stance, for sure, but these are issues in need of thorough discussion. Gallup polls repeatedly peg immigration as one of the issues voters care most about — along with healthcare and the economy.

However, we only care about those things tangentially. It’s all about the cars for us.

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U.S. Trade Head to Meet With UAW This Week Over New Trade Deal

U.S. Trade Representative Robert Lighthizer will be in Michigan this week to meet with union leaders from United Auto Workers in a bit to gain their approval for the Trump administration’s new North American free trade deal. Lighthizer is scheduled to meet with union officials in Dearborn on Tuesday to answer questions about the United States-Mexico-Canada Agreement (USMCA) while simultaneously drumming up support.

The USMCA deal suggests increasing existing requirements for North American content for vehicles, stipulating that 40 percent of a vehicle’s overall content be manufactured in areas paying at least $16 an hour, while also encouraging Mexico to tailor its labor rules to allow unions to wield legitimate collective bargaining powers.

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Trump to EU: Expect Auto Tariffs Without Trade Deal

Earlier this week, the European Union warned that if the United States imposes any new tariffs on European-built vehicles, it can expect similar levies on American products. However, armed with the Commerce Department’s confidential report on automotive imports, President Donald Trump doesn’t appear remotely interested in backing down.

While Trump previously agreed not to impose additional duties on European cars, the arrangement hinged upon the two coming together on trade. Unfortunately, while both sides seem eager to work out a deal, they can’t quite manage to keep the constant threats down to a dull roar.

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Don't Think We Won't Fire Back, EU Warns U.S. After White House Receives Key Auto Import Report

The showdown between the European Union and United States over auto tariffs reminds this viewer of Charles Bronson and Henry Fonda in Once Upon a Time in the West, and with good reason. Both players appear ready to reach for their Colt Single Action Army in a bid to do maximum damage to the other.

After the U.S. Commerce Department delivered a confidential report to the White House on Sunday, the EU is warning its trading partner that any tariffs imposed on European-built vehicles will be met with similar levies on American goods.

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Ford Threatens to Pull Out of the United Kingdom

Ford Motor Company has reportedly informed British Prime Minister Theresa May of its tentative plan to move out of the United Kingdom. The automaker explained the situation to May during a private call with business leaders tasked with assessing how Brexit might impact the economy. Ford said it was already preparing to move its facilities — which include two engine plants, a transmission factory, and an R&D center — abroad.

With the European Union and British government still unable to establish trade terms, automakers are having a panic attack. Ford later told Reuters that a no-deal Brexit would be catastrophic for its European-based businesses, citing earlier claims that it would cost the manufacturer up to $1 billion.

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Trade War Watch: Congress Tries a New Tactic to Block Auto Tariffs

With the United States’ government shutdown now over, lawmakers have an opportunity to work together as promised. Interestingly, one of the first pieces of bipartisan legislation to emerge after the federal bureaucracy resumed operations involves a plan to severely limit presidential authority to impose tariffs for national security reasons.

The Bicameral Congressional Trade Authority Act, introduced by Senators Patrick Toomey (R-PA) and Mark Warner (D-VA), along with House Representatives Mike Gallagher (R-WI) and Ron Kind (D-WI), would require the president to get approval from Congress before taking any trade actions based on national security threats. If passed into law, the bill would let the Legislative Branch effectively block the tariffs being proposed by the Trump administration on automobiles and automotive parts.

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  • The Oracle Well, we’re 3-4 years in with the Telluride and right around the time the long term durability issues start to really take hold. This is sad.
  • CoastieLenn No idea why, but nothing about a 4Runner excites me post-2004. To me, they're peak "try-hard", even above the Wrangler and Gladiator.
  • AZFelix A well earned anniversary.Can they also attend to the Mach-E?
  • Jalop1991 The intermediate shaft and right front driveshaft may not be fully engaged due to suspected improper assembly by the supplier. Over time, partial engagement can cause damage to the intermediate shaft splines. Damaged shaft splines may result in unintended vehicle movement while in Park if the parking brake is not engagedGee, my Chrysler van automatically engages the parking brake when we put it in Park. Do you mean to tell me that the idjits at Kia, and the idjit buyers, couldn't figure out wanting this in THEIR MOST EXPENSIVE VEHICLE????
  • Dukeisduke I've been waiting to see if they were going to do something special for the 60th Anniversary. I was four years old when the Mustang was introduced. I can remember that one of our neighbors bought a '65 coupe (they were all titled as '65 models, even the '64-1/2 cars), and it's the first one I can remember seeing. In the '90s I knew an older gentleman that owned a '64-1/2 model coupe with the 260 V8.