Trump with car forgives, aluminum and steel, AV dispute with Jeff Bezos
Trump’s government has decided to eliminate the last introduced Customs to imports for the automotive industry. Manufacturers such as Ford, General Motors and Stellantis complained that high customs duties on imported cars and car parts, including steel and aluminum, greatly increased production costs and threatened their financial stability and competitiveness.
Minister of Trade Howard Lutnick stressed that the decision to eliminate part of customs duties is the result of direct conversations with domestic car manufacturers who have been « in constant contact » with the government, reports New York Times.
The executive command signed by Trump involves the elimination of additional duties on steel and aluminum for automotive manufacturers. They will also be exempted from customs for imported car parts for up to 15 percent of the car value for one year. This exemption will be reduced to 10 percent in the second year and will be completely eliminated in the third year.
In addition, cars and components would no longer be subject to 25 % duties on Canadian and Mexican goods, 25 % of steel and aluminum duties, and 10 % customs duties applicable to most other countries, writes Reuters. Car manufacturers will thus pay or customs duties or customs duties on steel and aluminum – which will be higher, for Reuters explained a US clerk. The relief will not apply to Chinese parts, which will continue to be the subject of the latest Trump customs in the amount of at least 145 percent.
Motor manufacturers’ responses are mostly positive. Mary T. BarraCEO of General Motors, is for New York Times expressed gratitude for « productive talks with the president and his administration. » John Elkannchief stellantisaalso approves measures and further cooperation with the government to strengthen the competing US automotive industry.
The long -term impact on the automotive industry remains uncertain. Photo: AFP
Nevertheless, analysts warn that car manufacturers will still be ahead of considerable financial challenges due to customs. Barclays has calculated that a $ 50,000 car could contain $ 1875 parts that would not be the subject of customs. As he states Reutersin practice, would mean that car manufacturers could import parts without customs worth 3.75 percent of the sale price of home -made cars in the first year and 2.5 percent in the second year. This benefit, which is in place to retreat from April 3, will gradually abolish in the third year to encourage companies to move production to the United States.
The long -term impact on the automotive industry remains uncertain. Although the reduction of customs duties has brought some relief, analysts warn that car prices in the US will continue to rise, which could adversely affect the sale and financial stability of this industry.
China has been designed Reuters. With this measure, Beijing intends to mitigate the impact of trade war with the US, while maintaining hard public rhetoric.
Among the products on the list are some medicines, microchips and aviation engines. The Chinese authorities allegedly urged companies to determine the key products they need without customs loads. Businesses are not publicly reported to the list, but they are individually contacted by local authorities. One such examples is an American pharmaceutical company operating in China and received a notice from power in Shanghai on Monday.
Reuters It also reports that China has already acquitted the customs imports of ethan from the United States, as they are the only supplier. In addition, Chinese authorities are conducting a survey between companies to assess economic damage due to trade war – even in Xiamen, they have sent questionnaires to this purpose. The polls mainly include textile companies and semiconductors manufacturers.
Meanwhile, Trump believes that concluding a trade agreement with China is close, but adds: « The deal will be honest. »
The dispute between the White House and the Amazon
The dispute between the White House and the Amazon broke out due to reports that Amazon has the plan to display customs costs on its website. Report first published by the portal Punchbowl Newshe claimed that Amazon would soon begin to show how much the product price is due to new customs, which would clearly show US consumers how Trump’s customs affect their budget. Trump is reportedly angry, according to US media and called the founder of Amazon on the phone Jeff Bezos. After a call, he allegedly stated that Bezos was « very friendly » and that he « quickly solved the problem ».
A White House spokeswoman Caroline Leavitt She described the move as a « hostile and political act », adding that Amazon should also show an increase in prices due to inflation during Joe Bidn’s presidency. Amazon denied that he would ever plan to display customs costs on his main website, although he admitted that they were thinking about the Haul branch website, which sells products below $ 20. « This has never been approved and it won’t happen, » said Amazon spokesman.
The leader of the minority in the Senate Chuck Schumer he called on other companies to do so and show consumers how customs influences their finances. Republican Marjorie Taylor Greenewho first criticized this move, then said to help consumers identify which products are imported from abroad and allowed them to buy American products.
The dispute further tightened the relations between Trump and Bezos. Although Bezos has in the past sought better relations with the government and donated $ 1 million to Trump’s inauguration, he is certainly at least disappointed as a consequence of Trump’s measures due to loss of $ 30 billion.
