Trump may cancel EU deal and impose 25% duties on European cars.

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According to the Express UK website, the French Ambassador to the US warned that President Trump may impose duties on European autos very soon and impose tariffs if talks continue.

The French Ambasssador further claimed the upcoming months will be a crucial time to negotiate a new deal regarding trade. This news is a 180 degree change from July – when President Trump pledged not to impose new tariffs on the EU autos while the two sides were undergoing trade negotiations. Back in August, Trump threatened 25% tariffs on European cars – claiming the taxes are too low on importer cars in the US – thereby hurting American auto manufacturers.

Check back here for all the latest news on whether the administration will impose 25% duties on European autos. For this and other trade related questions, contact David Hsu at 832.896.6288 or by email at dhsu@givensjohnston.com.

U.S. Secretary of Commerce expected to present results of national security investigation into auto imports in August.

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U.S. Commerce Secretary, Wilbur Ross Official Portrait

U.S. Secretary of Commerce Wilbur Ross (pictured above), will present his Department’s findings on the national security investigation of auto imports into the US later next month.

The report to President Trump could impact foreign automakers as the results may lead to the importation of new tariffs – up to 25% on imported cars and parts.

Earlier in May, the U.S. Department of Commerce started a “Section 232” investigation to determine whether imports of cars and parts pose a risk to U.S. national security. As you are aware, invoking Section 232 is the same rule Trump used to impose tariffs on steel and aluminum at 25% back in March of this year.

Last week, foreign governments from Japan, Canada and the EU along with US industry groups met with Commerce to express opposition to the investigation. These groups argued higher tariffs would harm American consumers and workers along with the economy. Part of the harm would stem from an estimated increase in price of imported cars by $6,000 and price of domestic built cars by $2,000.

Check back for further news regarding the auto import tariffs as they become available.

Trump claims Harley Davidson using tariffs as an excuse to close US plant and move to Thailand.

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Back in April 27th of this year, I wrote on my blog post here that I suspected Harley Davidson was using international trade, tariffs and the US withdraw of the TPP as excuses for two unpopular moves by the company: (1) closing a Missouri factory and (2) moving production to Thailand.

As Harley Davidson is a foreign entity in Thailand, it is not easy for Harley Davidson to just decide to open a factory in Thailand overnight, here’s why you can’t just open a factory overnight –

It takes time and planning, sometimes years of planning – corruption and lack of transparency in government and state agencies, high tariffs on imports (ad valorem tariffs from 50-80% according to export.gov), changes in Thailand’s legal frame work increasing rule of law and consumer protection, higher insurance premiums and a lengthy patent registration process (export.gov claims the patent process may take several years). This doesn’t include the time to find the space, building or retrofiting an existing factory, hiring and training a local work force, working out the logistics to get supplies to the assembly line and then all the permitting, registration and other red tape needed.

Today, July 26, 2018, U.S. President Donald Trump accused Harley-Davidson of using trade tensions as an excuse to move production overseas:

<blockquote class=”twitter-tweet” data-lang=”en”><p lang=”en” dir=”ltr”>Early this year Harley-Davidson said they would move much of their plant operations in Kansas City to Thailand. That was long before Tariffs were announced. Hence, they were just using Tariffs/Trade War as an excuse. Shows how unbalanced &amp; unfair trade is, but we will fix it…..</p>&mdash; Donald J. Trump (@realDonaldTrump) <a href=”https://twitter.com/realDonaldTrump/status/1011568906992017408?ref_src=twsrc%5Etfw”>June 26, 2018</a></blockquote>
<script async src=”https://platform.twitter.com/widgets.js” charset=”utf-8″></script>

Reuters reported that the plan for the Thailand-made motorcycles would be shipped to the EU to avoid any potential tariffs on US goods. It is estimated the tariffs could cost anywhere from $90 to $100 million per year. The Reuters article also mentioned the move would not result in retail or wholesale price increases in the EU.

Check back for more updates as they become available.

Trump threatens tariffs on imports of European cars.

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According to Bloomberg, the Trump administration threatened a tariff of 20% on cars imported from the European Union if the EU does not remove import duties on U.S. goods.

President Trump tweeted:

“Based on the Tariffs and Trade Barriers long 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 said in a tweet on Friday.

Not mentioned in the Bloomberg article – but some European manufacturers already make vehicles in the US. For example, Mercedes-Benz builds their GLE SUV, GLS SUV, the C-Class and the GLE Coupe in Alabama. BMW builds their X3, X4, X5, X6, and X7 models in South Carolina. Mexico is also host to manufacturing for Audi’s Q5 and VW’s Tiguan and Jetta models.

The EU has already imposed tariffs on $3.3 billion in U.S. goods and would impose further tariffs in the event the U.S. goes through with the import car tariffs.

Further updates will be posted as they become available.

EU will vote to adopt”counter-balancing measures”on June 20th.

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At the next scheduled European Commission meeting scheduled for today (June 20th), the commission will vote on whether to adopt “counter-balancing measures” against the US.

Last Thursday (June 14th), the European Union countries unanimously endorsed a plan to impose counter trade tariffs against the US covering $3.3 billion worth of US products.

Once the vote is approved, the duties on US goods to the EU should be in place late June or early July.

 

Italy will not ratify EU/Canada trade deal.

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The Italian government has threatened not to ratify the EU/Canada trade deal titled: the Comprehensive Economic and Trade Agreement (CETA). CETA would be the largest trade deal since the EU/South Korea trade agreement in 2011.

The main reason for Italy’s opposition to the EU/Canada trade deal is the lack of protection for Italy’s specialty foods. The EU/Canada trade deal featured Protected Designation of Origin (PDO) and Protected Geographical Indication (PGI). Under CETA, Canada has recognized more than 40 Italian PDO and PGI labels out of a total of 292 foods.

Check back as more news becomes available.

EU approves counter tariffs against US steel and aluminum.

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In response to US tariffs on steel and aluminum, all members of the EU unanimously approved a plan to impose import duties on $3.3 billion worth of US products of steel and aluminum.

Further details will be released in 3 days as they are available and duties are expected to be in place later this month or early July (the next scheduled meeting is June 20th).

Questions, call David Hsu at 832-896-6288 or by email at dhsu@givensjohnston.com.

 

EU imposes tariffs on US goods starting July 1, 2018. Full list here.

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No surprise here – the Associated Press on June 6th published an article stating the European Union (EU) will start imposing duties on US goods starting this July in response to the current administration’s decisions to implement tariffs on steel and aluminum imports from Europe.

The increase in tariffs covers US goods such as steel, cigarettes, t-shirts, women’s cotton denim trousers, rice, broken rice (not a typo), tobacco, bourbon, peanut butter, cranberries and orange juice. The official list of goods subject to a 10%-50% duty can be viewed here.

Based on the items subject to new tariffs, seems like the majority of the people who will be effected are the consumers.

If you have any questions, please contact experienced trade attorney, David Hsu at 832-896-6288 or by email at dhsu@givensjohnston.com.

It’s official – US issues trade tariffs on steel and aluminum from the EU, Canada and Mexico.

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The Whitehouse issued two presidential proclamations that placed 25% steel and 10% aluminum tariffs on imports from the European Union, Canada and Mexico.

The full proclamations can be found here for steel and here for aluiminum.

If you have any questions on how these new tariffs will impact your business or what options you may have – contact experienced antidumping attorney David Hsu at 832-896-6288 or by email at dhsu@givensjohnston.com for a free evaluation.

EU wants to participate in the US-China steel dispute at the WTO.

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As previously posted on this blog, China requested consultations with the WTO regarding the US import tariffs on steel and aluminum. Requesting a consultation with the WTO is the first stage in the dispute process with the WTO and now the EU asked on April 23rd to join the dispute.

It is important to note that one week from now, President Trump will decide whether these tariffs would apply to imports from the EU. A temporary exemption from the 25% duty on steel and 10% duty on aluminum was granted for the EU until May 1st. Temporary exemptions were also granted to Canada, Mexico, Australia, Argentina and Brazil. South Korean imports have been exempted indefinitely.

In addition to the EU, Hong Kong, Russia, India and Thailand have also filed requests to join the consultations. Check back for more information as it becomes available.