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Archive for the ‘Trade’ Category

Rue Brittania? Brexit Could Chase Jaguar Land Rover from the UK

Brexit poses major financial hit, automaker warns.

by on Jul.05, 2018

Ralf Speth, CEO of Jaguar-Land Rover, celebrates a win for the Velar as World Car Design of the Year. It was a finalist for the overall World Car of the Year.

It once was said that “the sun never sets on the British empire.” What’s left of that realm could grow even smaller, ironically enough, once the United Kingdom exercises its independence and leaves the European Union.

Negotiations have been going on for months, following the Brexit vote, and among those watching closely to see how future trade relations shape up is Jaguar Land Rover, the British automaker warning that without a favorable deal, it could see its annual costs rise by 1.2 billion pounds, or about $1.6 billion, annually. That would force it to think seriously about moving out of the UK, according to a statement issued by JLR CEO Ralf Speth.

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The automaker, he stressed, needs to have “free and frictionless trade with the EU and unrestricted access to the single market” if it is to successfully compete in the global market, Speth said.

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Trade Tariffs Getting Global Pushback: Trump v. The World

Automakers leading charge against new tariffs.

by on Jul.02, 2018

GM CEO Mary Barra has attempted to provide counsel to President Donald Trump, even as his policies have negatively impacted automakers.

Everywhere President Donald Trump looks these days is another message saying, essentially, don’t do this.

“This” in this instance is an attempt to raise tariffs against multiple trade partners at the same time. Trump, who made trade a central piece of his election campaign, has managed to either increase tariffs or threaten to do so against Canada, Mexico, China, Japan and the European Union.

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Right now, Canada has already instituted retaliatory tariffs against the U.S. as has the EU for the tax on imported aluminum and steel. Trump responded by threatening to put tariffs on even more items, including a 20% on vehicles from the EU. (more…)

Obrador’s Win in Mexico Presidential Election Portends NAFTA Trouble

Tough NAFTA talks expected to get even more difficult.

by on Jul.02, 2018

Mexican President Andres Manuel Lopez Obrador is likely to have a negative impact on NAFTA.

In a development that leaves the future North American Free Trade Agreement hanging by a slender thread, Andreas Manuel López Obrador was elected president of Mexico in a landslide victory that could lead to sweeping change in Mexican politics.

The leftist Obrador is considered by some commentators as Mexico’s version of Cuba’s Fidel Castro or Venezuela’s Hugo Chavez.

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Obrador, who narrowly lost the Mexican Presidency in 2006 and 2012, has forcefully rejected the Castro-Chavez comparison. Instead he ran on a platform that promised to curb corruption in Mexico. But Obrador, who won 53% of the vote July 1, has promised to attack the inequality in Mexico and has said the NAFTA isn’t working for the average Mexican worker needs a hefty pay increase. (more…)

Car Dealers Tell Commerce Department That Tariffs are Taxes on Consumers

Department studying if imported autos risk national security.

by on Jun.29, 2018

AIADA's Cody Lusk chastised the Trump administration in a filing, saying a new tariff amounts to a new tax on the American people.

This country’s international auto dealers, who sell brands from Asia and Europe, fired a broadside shot against the Trump administration’s plans to impose a heavy tariff on cars imported into the U.S.

America’s auto dealers, domestic and international, stand to lose up to 2 million annual sales if the investigation rules against their products and the 25% tariff proposed by the Trump administration is put in place, the American International Auto Dealers Association said.

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The AIADA comments were filed with the Department of Commerce’s Section 232 investigation into whether or not imported autos and auto parts, used in every car sold in America, pose a national security threat to the United States. (more…)

Automakers Foreign and Domestic: Tariffs Harm Jobs, Economy

A 25% tariff could add nearly $6K to vehicle prices.

by on Jun.27, 2018

Commerce Secretary Wilbur Ross said the study determining if automotive imports could be declared a threat to national security.

(This story has been updated with additional information.)

The escalating tariff war between the United States and the European Union, heighted by a threat of a 20% tariff on EU-imported vehicles, could result in vehicle prices rising an average of $5,800 and eliminate hundreds of thousands of jobs.

Those are just some of the findings from study by the Peterson Institute for International Economics. The study claims that the cost to U.S. jobs from the import duties would be at least 195,000 jobs. It could be as high as 624,000 jobs if other countries retaliate.

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Last week, Trump threatened to impose the 20% tariff and yesterday he said tariffs are coming soon. (more…)

Friends to Enemies: Trump Threatens Harley Over Plan to Move Production

“They will be taxed like never before.”

by on Jun.27, 2018

President Donald Trump has gone from being supportive of Harley-Davidson to threatening the company with a "huge" tax.

After hailing Harley-Davidson earlier in his administration as an example of what makes American great, President Donald Trump has now gone on the attack, threatening to slam the Wisconsin-based motorcycle company with “a big tax” if they go ahead with plans to move some of their production abroad.

The turnaround comes in response to Harley’s Monday announcement that to avoid being caught up in the escalating Trump trade war it would have to move some of its motorcycle out of the U.S. The company said tariffs and counter-tariffs are adding as much as $2,200 to the price of every bike it ships to the European Union.

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The fact that his steel and aluminum tariffs might be playing a factor in the decision did not appear to matter to the president who issued a series of tweets blasting its planned move and threatening that, “If they move, watch, it will be the beginning of the end – they surrendered, they quit! The Aura will be gone and they will be taxed like never before!”

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Daimler AG Lowers Earnings Guidance Due to Trade Tensions

Retaliatory measures in China and Europe has Daimler concerned.

by on Jun.26, 2018

Mercedes-Benz builds SUVs at its plant in Vance, Alabama, that are shipped to China. The tariffs on those are expected to rise, cutting sales.

The rising risk of a global trade war has prompted Daimler AG, the parent of Mercedes-Benz Cars, to reduce its earnings guidance for 2018.

Daimler said has “made a new assessment of the earnings” potential for the year 2018 and reduced its earnings guidance for the full year because of the uncertainty surrounding trade.

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“From today’s perspective, the decisive factor is that, at Mercedes-Benz Cars, fewer than expected SUV sales and higher than expected costs – not completely passed on to the customers – must be assumed because of increased import tariffs for U.S. vehicles into the Chinese market,” Daimler said in its new guidance.  (more…)

“Nearly Every Segment of the Auto Industry” Threatened by Trump Trade War

But administration may be ready to double down.

by on Jun.26, 2018

President Donald Trump is threatening to escalate tension between the U.S. and the EU by enacting a 25% tariff on Euro-built vehicles.

Automakers and suppliers are scrambling to respond to a series of moves by the Trump Administration that could negatively impact “nearly every segment of the auto industry,” according to a new analysis by financial rating firm Moody’s Investors Service.

On Monday, Wisconsin-based motorcycle manufacturer Harley-Davidson responded to growing threats of a trade war by announcing plans to move some production from the U.S. to Europe, a shift the company said was forced by the EU’s decision to enact new tariffs countering increases levied by the White House.

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That could be just the first step, however. Other manufacturers are studying options, but are waiting to see precisely what President Donald Trump might do next. He has already increased tariffs on imported steel and aluminum, but is considering a 25% tariff on imported cars and car parts. (more…)

Trump Doubles Down on 20% Tariff Threat on EU Imported Vehicles

President tweets threat, pushes for more cars to be built in U.S.

by on Jun.22, 2018

President Donald Trump issued another threat to place a tariff on EU-build vehicles coming into the U.S.

U.S. President Donald Trump doubled down on his threat to impose a 20% tariff on all European Union-assembled cars coming into the United States in a tweet this morning.

“Based on the Tariffs and Trade Barriers placed on the U.S. and it great companies and workers by the European Union, if these Tariffs and Barriers are not soon broken down and removed, we will be placing a 20% Tariff on all of their cars coming into the U.S. Build them here!” Trump wrote on Twitter.

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The move comes a little more than a month after Trump asked the Commerce Department, led by Wilbur Ross, to investigate whether or not auto imports pose a national security threat. (more…)

Swedish Ambassador Slams Trump Tariffs at Volvo Plant Opening

Volvo CEO proposes "no tariff" auto zones.

by on Jun.21, 2018

Volvo's new Charleston, South Carolina plant is now up and running with S60 sports sedans rolling down the line. The XC90 comes in a few years.

The new S60 rolling down the line wasn’t the entire story during the official opening of new Volvo Cars factory outside Charleston, South Carolina, as complaints about trade and tariffs nearly stole the show.

With U.N. Ambassador Nikki Haley sitting close by, Karin Olofsdotter, Sweden’s ambassador to the United States, who was invited to speak during the brief ceremony, took the opportunity to send a message to the Trump administration.

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Speaking emphatically, she chided the Trump administration for implementing tariffs that inhibit “fair” trade and investment and undermine economic development in both Europe and the United States. (more…)