Tag Archives: tariffs

Tesla’s expansion plans in China put on hold due to US tariffs

US electric car producer Tesla has reportedly held off on plans to buy land to expand its plant in the Chinese province of Shanghai and turn it into the company’s global export hub, as uncertainty over US-China relations grows.

Tesla refrained from bidding on a plot of land that is in close quarters to its factory, according to unnamed sources familiar with the matter, as quoted by Reuters.

With an annual capacity of up to 500,000 vehicles, the company’s Shanghai plant is currently manufacturing Model 3 and Model Y vehicles at a rate of 450,000 units per year.
Also on rt.com Tesla reportedly working with Chinese regulators as car company faces scrutiny over safety issues
Earlier, the automaker was reportedly planning to increase the capacity of the existing production lines to expand exports of its China-made Model 3 to more markets, including the US, according to sources. The company currently ships China-made Model 3s to Europe.

However, with 25% tariffs on imported Chinese electric cars imposed, on top of existing levies introduced under former US President Donald Trump still in place, the automaker is planning to put limits on the share of China output in its global production.
Also on rt.com Tesla will ‘get shut down’ if used for spying in any country, Musk says after reports of restrictions on vehicles in China
Tesla’s sales in China, where the company managed to generate $ 3 billion in revenue in the first three months of 2021 alone, are growing, despite constant regulatory pressure in the country.

The automaker faces intense scrutiny in China over safety and customer-service concerns about vehicle cameras, battery fires, unexpected acceleration and failures in over-the-air software updates. Moreover, Tesla is also under close attention from Chinese watchdogs over how the company handles data.

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Author: RT
This post originally appeared on RT Business News

Alcohol industry urges permanent removal of all US, EU and UK tariffs

The alcohol industry on Tuesday formed the Toasts Not Tariffs Coalition to advocate for the permanent removal of all U.S., European Union and United Kingdom tariffs on its products. 

Forty-seven associations in the sector have joined the coalition[1] so far, representing producers, importers and wholesalers, as well as the restaurant and retail industry. The tariffs are in place in connection to steel and aluminum and Boeing and Airbus disputes.

The U.S. and EU earlier this month agreed to suspend[2] for four months tariffs relating to a long-standing trade dispute over subsidizing aerospace competitors Boeing and Airbus. The U.S. and U.K. made a similar agreement days earlier. 

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The EU and U.K. still have a 25 percent tariff on American whiskeys such as Bourbon, which were imposed in retaliation to President TrumpDonald TrumpGood luck, Dan Bongino! The Hill’s Morning Report – Biden’s next act: Massive infrastructure plan with tax hikes Conservative group says polling shows Dems’ voting rights bill ‘out of sync with American voters’ MORE[4][5][6][7][8][3]‘s steel and aluminum tariffs. On June 1, the EU’s tariff is expected to double to 50 percent. 

“This is a broad coalition representing a lot of different aspects of the hospitality sector that are invested in supporting the Biden administration through this,” Chris Swonger, CEO of the Distilled Spirits Council, told The Hill. 

John Bodnovich, executive director of American Beverage Licensees, called the situation a unifying issue for the industry. 

“We’ve all been working on this for the past couple of years and it’s good to be united together on this effort,” he said.

American whiskey’s largest export market is the EU, and exports have dropped 37 percent from $ 702 million to $ 440 million since the tariffs were first implemented in June 2018

The shutdowns and closures caused by the coronavirus pandemic have also negatively impacted the industry, which relies on revenues from restaurants, breweries, distilleries and other on-premise services.

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“From a retail perspective, COVID-19 closures and operating restrictions have really just ravaged the on-premise industry,” Bodnovich. “We’re already operating here in a very, very tough time.”

“A permanent removal of these tariffs will be a critical, critical element of getting our economy back to full throttle for the betterment of everybody,” Swonger said.

New U.S. Trade Representative Katherine TaiKatherine TaiEx-Newsom official drops out of running for OMB director Will new NAFTA block Biden’s progressive regulatory policies? The Hill’s 12:30 Report — Presented by Facebook — Nation mourns violence against Asian Americans MORE[10][11][12][13][14][9] has said she would push to negotiate resolutions to the trade disputes.

“The administration is very, very aware that these tariffs have had a big impact. We believe it is top of mind,” Swonger said. “We are very optimistic that the administration will do all it can to resolve the ongoing trade dispute over steel and aluminum.” 

Other members of the coalition include the Wine & Spirits Wholesales of America, National Retail Federation, National Restaurant Association, and the Wine and Spirits Shippers Association, among others.

[email protected] (Alex Gangitano)

US axes Trump-era Scotch whisky tariffs for four months in bid to resolve aircraft trade war with UK

The US said on Thursday it will suspend 25 percent tariffs on Scotch whisky and retaliatory import taxes on other UK products in a bid to resolve the two parties’ on-going transatlantic trade row due to aircraft subsidies.

Then-US President Donald Trump slapped the UK and other EU member states with tariffs on whisky, wine, cheese and other foodstuffs in 2019 in return for European plane maker Airbus being given illegal subsidies by the bloc. 

The World Trade Organization (WTO) ruled in 2018 that EU governments had failed to comply with US requests to stop funding Airbus, which had caused its American rival Boeing to lose $ 7.5 billion a year.

Airbus had already filed a similar complaint with the WTO against Boeing in a dispute between the two manufacturers stretching back to 2004.
Also on rt.com Trade war on Western front: US slaps 25% tariffs on French wine, Italian cheese & Scotch whisky
On Thursday the US and the UK said in a joint statement that “the United States will now suspend retaliatory tariffs in the Airbus dispute from March 4, 2021, for four months.”

The move is the latest of Trump’s policies to be overturned by President Joe Biden, whose administration will now turn its focus toward rising civil aviation powers “such as China,” the statement says.

Reacting to the news, UK Prime Minister Boris Johnson hailed the tariff climbdown as “fantastic news” for the transatlantic trading relationship, as well as for Scotch whisky distillers and other businesses.
Also on rt.com Trump’s tariffs hurt more than helped, leading to job losses & higher prices – Fed study
In December the UK International Trade Secretary Liz Truss announced Britain would suspend retaliatory tariffs against the US, ahead of Brexit and the expected new trading relationship with the US under Biden.

As well as whisky, Trump’s original tariffs in response to the WTO ruling targeted UK cashmere, German coffee and tools, Spanish olive oil, as well as cheese, meat and other products from various EU nations.

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Washington slaps tariffs on aluminum imports from 18 countries

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The US Commerce Department has introduced duties on common alloy aluminum sheet from 18 nations. The tariffs come as a result of an anti-dumping and anti-subsidy investigation launched under the Trump administration.

The duties on common alloy aluminum sheet, which is used in building facades, truck trailer bodies, and street signs, were announced hours after the Senate voted to confirm Rhode Island Governor Gina Raimondo as the new commerce secretary.

Germany reportedly had the highest anti-dumping rate, ranging from 49.4 percent to 242.8 percent. It is the biggest exporter of aluminum sheet to the US, with $ 286.6 million worth in 2019.
Also on rt.com US violated trade rules with 2018 China tariffs, WTO rules – but good luck enforcing it
Bahrain, which exported $ 241.2 million worth of aluminum sheet, received a 4.83-percent anti-dumping duty rate and an anti-subsidy rate of up to 6.44 percent.

The country reportedly benefited from pricing below the cost of production or the local market of 83 percent, while imports from India, worth $ 123 million in 2019, benefited from subsidies for 35 to 89 percent.

The list of countries facing aluminum tariffs includes Brazil, Croatia, Egypt, Greece, Indonesia, Oman, Romania, Serbia, Slovenia, South Africa, South Korea, Spain, Taiwan, and Turkey.

The final decision is expected to receive approval from the US International Trade Commission (ITC) by April 15.
Also on rt.com Trump’s tariffs hurt more than helped, leading to job losses & higher prices – Fed study
“If the ITC makes affirmative final injury determinations, Commerce will issue AD or CVD orders,” the department said in a statement, referring to anti-dumping or countervailing duties orders.

The latest tariffs will come on top of the 10-percent duties the US imposed on most aluminum imports under the Trump administration as part of a national security law.

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