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tariffs

Ambassador Bridge
J. Stephen Conn / FLICKR - HTTP://J.MP/1SPGCl0

 


Last week, Canada’s Minister of International Trade made an official visit to Detroit to meet with auto industry officials and other business leaders. 

Francois-Philippe Champagne sat down with Stateside to discuss the future of trade relations between the U.S. and Canada and the impact that relationship has on Michigan.

steve carmody / Michigan Radio

Economists are making dire predictions about the potential effect of a trade war on the domestic auto industry.

U.S. Secretary of State Mike Pompeo at the Detroit Economic Club.
U.S. State Department / via Twitter

The United States is taking a “really hard line on foreign practices that harm America,” U.S. Secretary of State Mike Pompeo told the Detroit Economic Club today.

An image of the highway sign for the bridge to Canada in Detroit
Ken Lund / Flickr - http://bit.ly/1xMszCg

Things got worse for trade between the U.S. and Canada as our neighbors to the north announced retaliatory tariffs in response to the Trump administration's tariffs on steel and aluminum from Canada and other U.S. allies.

President Trump is taking it personally, expressing his outrage and insulting Canadian Prime Minister Justin Trudeau on Twitter. 

A steel plant
Rebecca Williams / Michigan Radio

 


This week, President Donald Trump announced he will move ahead with tariffs on aluminum and steel imports, including imports from the European Union, Mexico, and Canada. Effective today, steel imports will be taxed at 25 percent and aluminum at 10 percent. 

So how will this affect the huge amount of automotive parts that go back and forth from plants in Ontario and Michigan?

Daniel Howes / Detroit News

President Trump says America needs tariffs on foreign-made cars and trucks to safeguard our “national security.”

Really? How many pickups do the Russians sell in the United States? Zero.

How many cars do the industrious North Koreans and Iranians ship here? Zero.

And how many Chinese-brand cars sit in U.S. showrooms? Essentially zero.

multicolored shipping containers in a ship yard with imported goods
Jan Buchholtz / Flickr - http://bit.ly/1xMszCg

President Trump is considering tariffs on imported cars, trucks, and parts.

That word came after a Wednesday morning tweet from the president, promising "big news coming soon for our great American Autoworkers."

USDAgov / CREATIVE COMMONS - HTTP://MICHRAD.IO/1LXRDJM

The U.S. Senate is taking up net neutrality today. A bill that would protect net neutrality rules from repeal by the Federal Communications Commission passed a procedural hurdle earlier this afternoon.

These Obama-era rules prevented internet service providers like Verizon and Comcast, for example, from speeding up or slowing down traffic from certain apps and websites. Barring changes made by Congress and signed by the President, the FCC's repeal of these rules is set to go into effect on June 11.

Trump delivers a speech at a CPAC conference. Auto supply CEO claims his tariffs are hurting American companies
Michael Vadon / FLICKR - HTTP//J.MP/1SPGCL0

President Trump's steel and aluminum tariffs continue to worry Michigan companies, particularly companies whose supply chains stretch to China.

One such company is Auburn Hills-based auto supplier, Lucerne International.

Daniel Howes / Detroit News

The Chinese say they’re willing to change the rules that protect their precious auto industry. That’d be the industry companies like General Motors have spent a generation building with Chinese partners because, over there, he who controls the government rules.

From the Collections of The Henry Ford / Benson Ford Research Center

As President Trump and Chinese leaders swap threats of trade tariffs, we've heard a lot of talk about what a 25 percent Chinese tariff might mean to soybean farmers in the U.S. and specifically in Michigan, one of the top soybean-producing states.

Andrey Filippov 安德烈 / FLICKR - http://bit.ly/1xMszCg

The news from Beijing this week is that China's President Xi Jinping is "open" to reducing the 25 percent tariffs on foreign-made cars, trucks, and SUVs. The leader is also open to full foreign ownership of auto companies in China.

It sounds like a big deal, but is it?

Detroit skyline with GM building
Pixabay.com

 


 

One month ago, President Trump tweeted, "Trade wars are good, and easy to win."

Daniel Howes / Detroit News

Doesn’t matter to Donald Trump what his fellow Republicans say.

Or what Wall Street and America’s closest allies say.

The president wants tariffs on imported steel and aluminum, and this week he got them, along with some last-minute carve outs for those national security threats known as Canada and Mexico.

BERNT ROSTAD / FLICKR - http://bit.ly/1xMszCg

 

President Trump has authorized his planned tariffs on imported steel and aluminum.  

(And a note: Stateside aired this conversation just before President Trump adopted the tariffs.)

Billy Wilson / FLICKR - http://bit.ly/1xMszCg

Today, the White House rolled out President Trump's planned tariffs on imported steel and aluminum. 

(Stateside aired this conversation just before this news broke.)

But Detroit News business columnist Daniel Howes has a three-word warning for the President: “Unintended consequences loom.”

Ford Europe / FLICKR - http://bit.ly/1xMszCg

President Trump is digging in on his promised tariffs on foreign aluminum and steel: 10% on imported aluminum, 25% on imported steel.

That announcement sent the stock market tumbling and got our European and Canadian allies talking about possible trade wars, and retaliatory tariffs on American-made products.

And the pushback from the president’s own party is growing: House Speaker Paul Ryan has split with the president and opposes the tariffs, and Congressional Republicans are figuring out how to block them.

Tracy Samilton / Michigan Radio

The United States has filed a complaint with the World Trade Organization against China over tariffs on U.S.-made vehicles.

The Obama administration says China unfairly placed duties of up to 22 percent on U.S.-made vehicles that are exported to China.

The tariffs apply to larger passenger cars and SUVs.

American politicians are vowing to fight new Chinese tariffs on large U.S. made cars and SUVs.    

In 2010, the U.S. won a Chinese tire-dumping complaint before the World Trade Organization. 

China has complained about U.S. poultry dumping.  The U.S. is investigating whether China subsidizes solar panels. 

Now the fight is over cars.  Republican Congressman Kevin Brady of Texas heads a trade subcommittee.