Shots have been fired and neither side seems willing to cave. Although the US has imposed global tariffs on steel and aluminum imports, President Donald Trump seems to have his eyes fixed on China. Trump has already imposed 25 percent tariffs on Chinese imports worth US$50 billion and he has threatened to keep going should China retaliates.
The scenario is grim not only in North America but globally and some companies are already feeling the impact of the US’ protectionism. Still, some are hopeful that the consequences will not be that grave, at least in the short term.
In a lighter note, check out what our team thought about the Nissan X-Trail EXCLUSIVE in our latest blog.
For more on what happened over the week, keep straight ahead!
Global Trade Hurdles
Beginning July 6, the US’ tariffs on Chinese imports will be enforced taking both countries closer to a trade war.
Trump’s tariffs on steel and aluminum are already impacting metal prices in the US for local companies’ detriment. Prices in the US are already 50 percent higher than in Europe.
NAFTA talks will resume after July 1 but both Mexico and Canada have refused to let the US subject the negotiations to the implementation of tariffs on steel and aluminum.
Manuel Molano, Deputy Director General of the Mexican Institute for Competitiveness, says Mexico should not be afraid of establishing a closer relationship with Asia just to please the US.
The President of the Laguna Automotive Cluster, José Luis Hotema, says there is concern among companies regarding the implementation of tariffs and the future of NAFTA.
Signum Research, on the other hand, says companies like Nemak or Rassini will not be impacted by tariffs as much as by the outcome of NAFTA.
Automakers are already seeing an impact on their stock prices due to trade uncertainty and the threat of a trade war.
The Volkswagen Group Still on the Spotlight
Rupert Stadler, Executive President of Audi, was arrested last Monday because of possible links to Volkswagen dieselgate.