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Archive for the tag “Harmonized Tariff Schedule”

Toyota explains the Trump Administration: How damaging the tariffs are on the Auto Industry!

Just as the letter is leaked from Stephen Ciccone, Group Vice President of Government Affairs within the Toyota Motor North America INC, who had written this leaked letter to the Secretary of Commerce Wilbur Ross. Who has defended the tariffs on steel and aluminum, which has been on the European Union and NAFTA trading partners.

The reason why this letter is interesting, is because what he reveals, that the Government and Trump Administration will not reveal. The cost of the tariffs will be in jobs in the United States and also for the consumers. The most popular car produced by Toyota, the Toyota Camry with 30 % Foreign Parts, will be costing $ 1,800 more. The company has translated the cost, if the companies put the cost and compensation on the consumers. It would be 25%, an estimated loss of sales because of it could be up 2 million units or 10 % annually. If these numbers are true, than the Trump Administration are not only destroying imports, but local production and car-sales in general. That all because of the tariffs on these set-fixated goods, which is used to produce cars.

Therefore, these tariffs made are directly as the Toyota Company in the United States through the whole chain from factory to the consumer are around 470,000 people hired through the chain. While the manufacturing piece alone is 137,000 in 10 factories (soon 11). They are in Kentucky, Indiana, Mississippi, Texas, California, Alabama, Missouri, Tennessee, Michigan and West Virginia. So it is not like this is just hitting the favorable blue-states, which the Republicans hate. This would hit in the middle of the rust-belts and heartland f the Trump Voter.

Toyota Motor has really put themselves strategically in the United States, as well as put themselves in the midst of ironic territory. As they are in the areas where the President got the most support and also has the strongest loyalty, even as they are not serving the principals of the trade. The cost will be taken by the same people who voted him in and the added cost will be on the voters themselves. Either in lose of jobs in manufacturing, if not in lack of sales as people cannot afford to buy as many cars as they could before. That is not weird as the wages in the United States has been stagnant for so long. Therefore, the rise of prices combined with lack of surging wages, they cannot manage to afford the luxury of new cars, even used ones.

Just imagine the sudden rise of 25% on each imported car and also close to 2 Grands more expensive Camry. That will be costly for plenty of people. That is not mere cents on the can of beans as Wilbur Ross did on TV after the tariffs was made public. This here is much more costly and actually affect as many as 470,000 people in the United States. That is only in Toyota, what about the all American General Motors or FORD? Who knows how they will be hurt or how much added cost this will have on the consumer? Even how many people in their production chain from manufacturing to the consumer will be hurt by these efforts made by the state?

If Toyota is sending this warning and show the real affects on the economy by doing so. In just one company, what will it do to the whole industry and also the possible outcome of the provisions made by the tariff. That should be striking, but wisdom is rare in this administration. They are not concern with other, than their own pride and deluded acts of ignorance. This is destroying industry, not creating or salvaging anything.

Toyota is sending a signal to the Trump Administration, but will they care? No they won’t, unless they are Russian Oligarchs or Putin’s henchmen in the US. Peace.

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Opinion: Trump impose tariffs on Steel & Aluminum from the EU, another proof that the world cannot trust the US anymore!

The world doesn’t need enemies, it already have Trump, President Trump. He doesn’t care and shows no tact, no mercy and no sort of dialogue. That is proven again. Now that he has over night decided to impose tariffs on Aluminum and Steel from the European Union (EU). It is like Trump wants the US to be alone in the world. That is what he is getting closer to every single day.

When your not making sure the friends of United States gets to trade with reasonable tariffs, then who do you let do that? Why does the United States think they are so special that they can hit another continent like nothing. This is just like they pulled out of the Paris Agreement on the Climate, as the US don’t want to part of the global fight against climate change. We also seen the US has pulled out of the Iran agreement, making things worse in the Middle East. That is done while the US Embassy was moved to Jerusalem and weapons delivered to Saudi Arabia. This is all decisions that makes the world more fragile and hits the nerves of the regions.

Now, the EU is imposed tariffs, which are done because of Trump’s imaginary vision of supremacy, instead he is losing end. As people knows with every day, they cannot trust the United States. Even Angela Merkel said that during April 2018. There is more and more proof, that the world cannot trust Trump and the US Government. It is erratic and unstable, it is a house of cards.

President Trump policies are short-sighted and without vision of consequences. The US will not salvage this industry, this will just make the products made with this more expensive before the industry get better sights and hired more educated people to work in the industry. You cannot just build steel mills over night and nether have the educated engineers like that too. This isn’t making copyrights on random products, this is actually producing and making them.

I don’t think that Trump knows this, he thinks of ancient ways and wants to be Cesar and rule everything without any consequences. But Trump should know that the EU will react to this, they will put reactionary tariffs on products and American goods valued the same as the industries they hit in the EU. So that the different partners are making sure the Americans get to feel it too.

The US should know, that all of this doesn’t make friends, but more people looking at them and mind boggling thinking. The US Government, we cannot trust or really count on. They are just using everyone and making sure the rest is hit. While the US wants to get away without any responsibility. But the reality will hit them, when the EU answers with imposing tariffs on US goods too. That would be a natural reaction. Hopefully hit a nerve with the President and his allies. Since that was what the EU planned in the past to answer it.

Let’s see how this goes. But it is not a good look. Only making things more hostile and letting the world know. The US cannot be trusted, they are misusing their position and will only make the global diplomacy harder. Peace.

South Africa: Section 232 Investigation by the United States of America on Steel and Aluminium Products (12.03.2018)

South Africa’s exports to the US on steel amounted to US$950 million in 2017 and accounted for 1.4% of U.S.’s global imports.

PRETORIA, South Africa, March 12, 2018 – The South African Government has noted the announcement of the President of the United States of America, Donald Trump on 8 March 2018 that he has signed proclamations to impose a 10 percent ad valorem tariff on aluminnium articles and a 25 percent ad valorem tariff on steel articles.

It was further announced that the United States (US) will consider specific requests from affected domestic parties, to exclude from any adopted import restrictions those steel articles for which the Secretary of Commerce determines there is a lack of sufficient US production capacity of comparable products, or to exclude steel articles from such restrictions for specific national security-based considerations.

The proclamations make a provision for any country with which the US has a security relationship to discuss with the US alternative ways to address the threatened impairment of the national security caused by imports from that country. Should the US and that country arrive at a satisfactory alternative means to address the threat to the national security, the US President may remove or modify the restriction on steel articles imports from that country and, if necessary, make any corresponding adjustments to the tariff as it applies to other countries as the national security interests require.

In relation to aluminium, the products to be affected are defined in the Harmonized Tariff Schedule (HTS) as: (a) unwrought aluminum (HTS 7601); (b) aluminum bars, rods, and profiles (HTS 7604); (c) aluminum wire (HTS 7605); (d) aluminum plate, sheet, strip, and foil (flat rolled products) (HTS 7606 and 7607); (e) aluminum tubes and pipes and tube and pipe fitting (HTS 7608 and 7609); and (f) aluminum castings and forgings (HTS 7616.99.51.60 and 7616.99.51.70), including any subsequent revisions to these HTS classifications.

The products affected in relation to steel are defined at the Harmonized Tariff Schedule (HTS) 6-digit level as: 7206.10 through 7216.50, 7216.99 through 7301.10, 7302.10, 7302.40 through 7302.90, and 7304.10 through 7306.90, including any subsequent revisions to these HTS classifications.

In addition, the Secretary of Commerce is expected to publish the Federal Register on the appeal process for US buyers to apply for exclusion within 10 days. The tariffs will be implemented on 23 March 2018, if no alternative arrangement is agreed to with individual countries.

South Africa is studying the proclamations and its implications for the domestic industry in South Africa. South Africa’s exports to the US on steel amounted to US$950 million in 2017 and accounted for 1.4% of U.S.’s global imports. In the case of aluminium, the SA exports were US$375 million in 2017, accounting for 1.6% of US imports from all global suppliers. It is clear that South Africa’s exports do not impose a threat to US industry and jobs. The SA exports are in some cases used as inputs into further processes in the US manufacturing sector thus in fact contributing to US jobs and production.

The Department of Trade and Industry (the dti) is fully engaged with the matter and continues to have discussions with the US on this issue. A formal submission will also be made to the US as is provided for in the proclamations.

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