tariff

Japan has been charging a 0% tariff to foreign cars. You will not find one among the 50 best selling

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Japan is a fascinating country, of those that it costs to understand from the point of view of a western one. Perhaps because we ourselves have turned our backs on Asian culture during our years of teaching or because, simply, they have historical and cultural peculiarities that we are complicated to assimilate. What is certain is that the Japanese have entrenched the consumption of the local product. You have to keep in mind that Japanese society is deeply nationalistperhaps because it is surrounded by other countries where this feeling is also entrenched as China or the Koreas, which has caused continuous tensions in the area. After the Second World WarThe United States financed the recovery of Japan, with the clear objective of putting a geopolitical cap to communism that threatened from China and Korea. A movement that could have diluted this nationalist feeling. Little by little, the country was growing and in the 70s managed to diversify its industry and, at the same time, apply technical novelties that placed it at the world avant -garde in many sectors. Taking advantage of the weakness of the Yen against the dollar, they decided to put all their effort into export as much as possible of your products. Those exports flooded the world product economy. One of the most significant were cars. In its technical innovations, the country prioritized the efficiency of its engines, key to flooding the market when the oil crisis. In front of American and European cars, The Japanese were cheaper and more efficient. It was at that time that the industry shot completely and Japan decided to make a decision: he raised tariffs on foreign cars. Pass and see Something like that should have thought of Japanese politicians in 1978. With the aim of being more competitive in the face of foreign markets, the country raised all tariffs for those who wanted to import a car to their country. That is, any foreign brand could sell its cars in Japan without paying a single extra euro. In Japan they should not be afraid of what was going to happen. Its industry was so powerful and cultural factors so decisive that foreign vehicles have not finished cauling in the market. For proof, In 2016 the European Union lifted the 10% tariff with which he taxed Japanese cars. The 3% paid by Japanese manufacturers to produce in Europe but use Japanese pieces, but also raised Japanese. In return, the European Union found the open door to sell other products, such as cheese or wine. So, The European Union He came from buying 575,000 cars worth 9,000 million euros while we were barely sold 279,000 vehicles for a value of 7.3 billion euros, they collected in The world. From Auqí we can get two readings. The European Union, a specialist in the export of cars, had barely placed in the country Japanese 279,000 cars in a market in which Five million cars were almost sold that 2016. Of the 12 best -selling brands that year in the country, only one (Mercedes in tenth position) was foreign. And none of the 30 best -selling cars in the country was a foreigner. The cars that the European Union managed to place in Japan were high -price vehicles. The average unit cost Japan more than 26,000 euros while those bought by the European Union cost less than 16,000 euros. That is, it costed Europe (and much) to compete by volume. When Japan opened its doors to the world, it had to be aware of the country’s particularities. The hard emission and space standards have made the center cars of large cities disappear. From the 60s The Shako Shomeishhothe obligation to have a space to park the car to have the right to buy a car. In a country that is concentrated in cities, the limitation is decisive. In addition, the Japanese client fully trusts his companies and has trouble opening to new technologies. The host of the hybrid car in front of any other technology (and the Resistance of Japanese firms themselves The electric car attests to it) is a good example of this. To this we must add that, by price, the great generalists cannot compete since local vehicles are sold much cheaper taking advantage of a manufacturing within the country that is more competitive than beyond their borders. The value of YEN, lower than the dollar, the euro or the pound, allows them to obtain large amounts of money for the development and manufacture of a product that allows them to lower prices in their local market. On the contrary, foreign companies that have to sell there face A cut market For emission regulations, the space regulations barrier and that have the obligation to change the production of the car since when driving on the left they need to position the controls on the opposite side. An added cost that puts another lock. The result is that Europeans and Americans end up offering Japan cars that do not interest. In addition, in Japan the minivans, contained on the outside and of wide interior space are religion. A type of car that has disappeared in Europe while in Japan the Toyota feels, the Nissan Note and the Honda Freed occupied the squares of third, fourth and fifth best selling car In the country. And you can keep going down in the list of the 50 best -selling cars in Japan In 2024. You will not find one that is a foreigner. Photo | Toyota In Xataka | The problem of US cars in Europe is not tariffs: they are not interested in the least

The tariff war will shoot the price of a component that nobody speaks: the SSD units

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The tariff war that has triggered the entire planet The US government led by Donald Trump is wreaking havoc in the markets. Consumers are already noticing Price increase Of many products, and presumably in the short term we will perceive it in many more. There is no doubt that the world is entering In an unexplored terrain. If we stick to technology, much is being talked about the impact of tariffs on chips for applications of artificial intelligence (AI), CPU and other components, but storage solutions have gone unnoticed. Until now. And it is that US tariff policy will cause with high probability a very important increase in the price of mechanical hard discs and solid state storage units. Mechanical hard drives can be worse stopped than SSD units Seagate, Toshiba and Western Digital are the main manufacturers of mechanical hard drives. The supply chains of these three companies are very complex because the components they use to assemble their units come from a very wide range of countries. And, to anyone’s surprise, many of these nations are among those subject to The highest US tariffs. In principle the most disadvantaged company at the current situation is Seagate. As we have told you, the US administration has increased tariffs for products from China up to 145%and Seagate produces a good part of his porpholio in the country led by Xi Jinping. In current circumstances the best option for these companies is Move your production to the USeither one of the countries that are receiving a slightly friendlier treatment from the Government of Donald Trump. The manufacturers of solid state units have an advantage that the mechanical hard drives companies do not count However, for mechanical hard drives manufacturers it is not easy to move from one country to another. And it is not because these devices are assembled in clean rooms similar to Those used to manufacture semiconductors with the purpose of ensuring that dust particles do not spoil them. The panorama faced by the producers of solid state storage units is not very different. Samsung, Micron or Kioxia supply chains, among other companies that manufacture NAND 3D memory chips or SSD units, are as complex as those of companies that produce mechanical hard drives. However, manufacturers of solid state units They have an advantage With which the mechanical hard drives companies do not count: the assembly of the SSD does not have to be carried out in a clean room. In practice it is relatively simple to transfer the production of SSD from China or Vietnam to Mexico, Canada or the US. Whatever the price of storage units, whether they are going to increase perceptibly over the next weeks. Only a return to the prior market to tariffs could avoid it, and right now this possibility is remote. More information | Blocks & Files In Xataka | China responds again to US tariffs and rises to 125%: from here it would be a “joke” to keep climbing

Boeing, in the line of fire of the tariff war. Airbus is emerging as the winner of the pulse between China and the USA

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We are witnessing a Commercial War Unprecedented while we try, as far as possible, understand how far you can go. Trump administration maneuvers are being as drastic as unpredictable: in just one week, It has gone from imposing reciprocal tariffs on dozens of countries —Without distinction between allies or competitors— to suspend them to open a negotiation period. That turn has given some oxygen to the global economy, qEU was already noticing the consequences. But the case of China is different. There is no truce there. Beijing has seen how levies to their exports to the United States shot. And in the midst of this new scenario, the question is inevitable: what sectors are in the line of fire? We have already talked about the technological, with Apple to the head. The company has begun to send thousands of iPhone from India to the United States to dodge part of the tariff impact. There are also indications that this situation could be translated In an increase in the price of the device in some markets. But there is another actor who enters the scene: Boeing. Despite the setbacks of recent years –marked especially by the accidents of 737 Max-, Boeing is still one of the United States industrial emblems. A heavyweight of the aerospace sector, whose airplanes are not only fundamental for global transport, but also a reflection of the technological and economic muscle of their country. Now, the trade war threatens to erode part of its competitiveness and could give An advantage to its great European rival: Airbus. To better understand the scenario, it is convenient to review, in general, some tariffs between the United States and China. We start with the measures applied by the White House since the return of Donald Trump. United States tariffs to China products The sum of the aforementioned tariffs gives us 145% to imports from China. It should be noted that, as with the European Union, other tariffs have also been imposed over time. Let’s see. China tariffs to United States products April 4, 2025: 34% of tariffs in response to the “reciprocal tariffs” of the United States to all American imported goods. April 8, 2025: 50% of tariffs in response to the increase in the “reciprocal tariffs” of the United States to all American imported goods. In this case, the sum of both tariffs results in 84% of tariffs that exist at this time. Tariffs will make the manufacture of airplanes As we have seen, tariff barriers are high on both sides of the board. If we focus on the aviation industry, the impact on supply chains It can be significant. Although most of Boeing’s production is concentrated in the United States, many of the components and materials they use come from suppliers distributed throughout the world. That’s where companies like Shandong Nanshan Aluminumthat supplies aluminum to aerospace firms such as Spirit Aerosystems. The latter, based in Wichita, produces fuselage sections for both Airbus and Boeing, including more than 70% of the structure of 737. In that context, tariffs can make aluminum more expensive from China. Although both Boeing and Airbus began to diversify their supply chain after the outbreak of the first tariff war during Trump’s initial mandate, A recent analysis of Leeham firm and Official Public Documentation suggest that Chinese aluminum is still present in the manufacture of some parts. That puts on the table the possibility of a price increase. Airbus’s case – a European manufacturer based in Blagnac, France – makes clear to what extent the supply chains are interconnected. Spirit Aerosystems not only works with Boeing, he also collaborates with his great European rival. And it is not the only example: Boeing also imports high -tech components made in Sheffield, United Kingdom. Airbus tactical advantage From the point of view of the supply chain, the manufacturer that depends most on raw materials or components affected by tariffs will be, logically, The most harmed. With the available data, it is not easy to determine which of the two large manufacturers is at a greater disadvantage, but if we take the case of aluminum as a reference, the advantage will be those who manage to import it at the best price and with the lowest tariff load. The scenario, however, is more complex than it seems. Changing supplier not only implies a logistic and operational reconfiguration, but also the global context is so volatile that it is difficult to make structural decisions. Not only China is subject to tariffs: dozens of countries are still reached by a base tax of 10%, although the White House has granted a 90 -day extension to the toughest tariffs. Where does Airbus’s supposed advantage come here? According to Reutersthe European manufacturer could benefit in the Chinese market by not being subject to 84% tariffs that affect US planes. Although China drives its own models, such as Comac C919it is still one of the largest aircraft buyers in the world. And both Airbus and Boeing have many deliveries committed. Chinese airlines could bow up by Airbus if their airplanes are cheaper than those of Boeing. Although the American manufacturer could try to absorb part of the impact by reducing margins, current tariffs – and the possibility of rising again – make that option hardly sustainable. Airbus, meanwhile, would face a challenge nothing less: increase its production capacity and comply with delivery deadlines. Images | FASYAH HALIM | Sven Piper | Lukas Souza In Xataka | The European Union reacts after the unexpected US turn: suspends its tariffs, although it keeps its finger in the trigger

China has just launched another blow to the United States in full tariff war and this time points directly to Hollywood

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“China wants to reach an agreement. The problem is that they are not clear how to do it,” Trump declared Wednesday to the press. He did it shortly after announcing the temporary suspension of “reciprocal” tariffs to dozens of countriesalthough not before hardening its pulse with Beijing: the White House raised the levies to Chinese imports up to 145%. At first, there was 125%, Although Washington clarified that this figure joined 20% already in force. But with the commercial tension on the rise, China does not give signs of giving in, as the American president is probably waiting. Beijing has raised the tone and made its position clear. “If the United States insists on following its own path, China will fight until the end,” A spokesman for the Ministry of Commerce said this week. And as if they wanted to underline it with facts, this Thursday they have announced a reprisal measure that points against the American film industry. Less Hollywood, more local cinema. As Global Times collectsthe China National Cinema Administration has announced that it will reduce the number of imports from American films. The agency ensures that the measure responds to the “market law” and the election of the public, although it shows a political background by ensuring that tariffs imposed by Washington will end up deteriorating the perception of the Chinese public on US films. From now on, the number of premieres from the United States will be limited in the country’s rooms. A trend that comes from afar. The decision occurs in a context where Hollywood had already begun to lose presence. According to April box office dataonly two of the ten American films released so far from 2025, ‘Captain America: A New World‘ and ‘A Minecraft movie‘, have exceeded 100 million yuan (about 13.6 million dollars). The rest has barely generated impact. Far from being an isolated reaction, the measure fits with a broader transformation. For years, Hollywood productions enjoyed great acceptance in China, but that panorama has changed. According to data collected by the Xinhua agencyin 2012, seven of the ten higher films in the country were Americans. Today, however, Hollywood titles barely manage to sneak among the most seen. China has followed a usual strategy: learn from global referents and replicate them with their own seal. In the last decade he has developed an industry capable of producing local blockbusters with great reception. Recent examples such as’Wolf Warrior‘,’Hi, mom‘,’NE ZHA II‘ either ‘The Wandering Earth II‘They demonstrate that turn. These last two, in fact, currently lead the national box office. The commercial war continues. After the rise in tariffs to 145% to Chinese imports announced by the United States, it remains to be seen what the next Beijing reaction will be. For now, the answer has been a moderate adjustment in the cultural field, but nothing prevents them from opting for more forceful measures. Currently, Chinese tariffs on American products are at 84%. Images | Freepik | ZHE ZHANG In Xataka | Apple and Trump’s dance is taking shape: threat, panic … and an imminent exemption

A 46% tariff to Vietnam

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New day, new tariff. The Trump administration led to its maximum tension peak with a 104% China tariffthat just a few hours ago rose to 125%. At the same time, the rest of tariffs were extended for 90 days and It was modified The percentage to a fixed 10%. Aim? Fully focus war on China. Although the focus is on the main rival, there is a country that was in the peephole with one of the highest tariffs on the list: Vietnam. Attacking this country is to attack one of the most important Asian manufacturers in the world. One that, in the United States, is currently the second manufacturer. Yes, we talk about Samsung. Why Vietnam. From the Start of the Commercial War Between the United States and China in 2018, Vietnam became In one of the main escape routes for manufacturers who wanted to overcome the tariff impact. Some of the big companies They began to transfer part of their production there, given their low labor costs, political stability qualified labor. In recent years, we have seen giants such as Apple moving the production of products such as Airpods to Vietnamin his attempt to reduce dependence with the Chinese production chain. Trump is aware of the relocation of companies (including Americans) to this country, and wanted to punish him especially with a tariff of more than 40%, for now in the air. A key ally. Such is Samsung’s investment in Vietnam, that its exports have come to suppose 25% of the total country. In 2024 he invested more than 220 million dollars at the Hanoi Research Center, and employs more than 100,000 people. On the other hand, Vietnam has endowed Samsung with fiscal exemptions, preferential tariffs and specific infrastructure adapted to Samsung’s requirements. It is a key company for the country’s economy, and the relationship is completely symbiotic. The Samsung case, even more particular. Samsung’s relationship with Vietnam goes far beyond the commercial war. Is one that is consolidated since 2008year in which Samsung lands in the country with its first production plant. Almost 20 years later, 50% of its production chain is located in Vietnam, with various production plants and a gigantic R&D center in Hanoi. Samsung not only manufactures telephone numbers in Vietnam, divisions such as Samsung Display, as well as those related to low -level chips, batteries and more key components of their technological portfolio, are born in Vietnam. It is currently the country that forms its strategic nucleus in supply. Nor a trace of China. Samsung is the only technological giant that does not manufacture smartphones in China. The company closed his last factories In the territory in 2020, distributing production between Vietnam, India, South Korea, Brazil, Indonesia and Egypt. Samsung’s production chain is extremely diversified, a scenario that protects it quite well in the face of geopolitical changes. Three months of uncertainty. Samsung has a lot of response capacity to a 10% tariff in Vietnam. Diversification in the supply chain is one of its main allies, and a partial absorption strategy of the tariff added to a slight rise in prices in markets such as the American would not be a special impact. A separate case would be the return of a tariff greater than 40% to Vietnam, taking into account that half of its production is done there. At the moment, the news of the day is that Trump has focused this tariff war on China, lowering the rest to 10% and paralyzing them for 90 days. Tomorrow, perhaps, the news is different. Image | Xataka In Xataka | The EU moves token and approves its retaliation tariffs to the US: we already know when the counterattack will begin to be applied

The tariff snowball begins in the price of iPhone. The real problem is its ramifications

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It is not just that The iPhone can end up costing more “As many other things,” but everything that derives from the problem with The tariffs of Trump that today enter into force worldwide. The consequences of these measures are unpredictable, but there are some industries that will clearly be especially affected. He snowball effect It can be spectacular. Let’s put an initial example to Apple, One of the first great victims of tariffs. We do not know if the company will end up raising the price of its iPhone or other products, but the reality is that the company will cost everything more because of the tariffs. If that happens, you will have to apply measures so that the business remains profitable, because it is likely to sell less and that consumers tighten the belt. And they squeeze it, everyone else will squeeze it. Apple could make decisions and make cuts in certain business areas. One of the most obvious – in addition to template cuts – is In advertising spending. Apple could decide that (for example) you will invest half of what you invested in social networks such as Meta. It is something that already prevented in Emarketer, where they indicate that social networks They will be the most affected for the fall of advertising expenditure. Experts expect cuts between 12 and 41% of the advertising budget in the US because of tariffs. Source: Emarketer Now let’s put ourselves in the skin of Mark Zuckerberg, who sees how much less money will come precisely in what is the pillar of his business, advertising. And if the income goes down, you will have to face that fall trying to retain advertisers, but also adapting to the situation. That advertising spending cut will affect especially to the mediathey point out In Marketwatch. In some cases they may face it thanks to using mixed models that combine advertising and subscriptions. They will not even be safe, because in that snow ball many consumers will be trapped and will decide to spend less on those monthly payments and will unsubscribe, at least temporarily, in content. If there are fewer advertisement money, you have to make cuts too. And that usually means focusing on the business areas that work and leaving other divisions in “low consumption mode.” Again the layoffs are the clear resource, but a goal could also cut in stop your investment in your commitment to AI. The development of your Family of models call 4 It could stagnate, which would also affect the work of independent institutions, companies and developers that use it as the basis for their own projects. The same could happen in Redmond. For Microsoft the theoretically theoretically cause tariffs that maintaining their services and their gigantic infrastructure in the cloud comes out more expensive, so we face potential price increases from Microsoft 365 and many other of its services. But they would not be the only feasible cuts, because in fact Microsoft has already begun to move tab and prevent before healing. Thus, the company has made cuts in its projects to expand its infrastructure. Microsoft had not stopped in investing in new data centers throughout the world, but their plans have begun to change. Ha canceled or leisurely the Creation of data centers worldwide and that is a clear obstacle to its commitment to artificial intelligence. The snowball can be made much greater, of course, and the reprisals than Other countries They can take against Trump’s tariffs will only aggravate the situation. Thus, China He has already responded To the rise of 104% tariffs that Trump threatened to activate: now the tariffs for goods that the US exports to China will go from 34% to 84%. The EU too prepare your first answerand while the ball continues to become more and bigger … and more unstoppable. Image | JP Valery In Xataka | The US has finally formalized the 104% tariff to China. Act then Apple has ceased to be the most valuable company

Elon Musk attacks the ideologist of US Tariff Policy

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The global economy faces one of the most tense moments in its history, after the implementation of the new US tariff policies that it has given by amortized World free trade. The reciprocal tariffs have not only rekindled the fears of a world recessionbut they have also hit some of the world’s most innovative companies hard. Among the main affected: Elon Musk, whose companies will receive a hard blow for the commercial war that the US has started with China and Europe. Elon Musk doesn’t like tariffs. Elon Musk has expressed clearly its opposition to the new tariffs driven by Donald Trump. During the weekend he proposed a Commercial Agreement of “Zero Tariffs” between the United States and Europe. In addition, Musk shared in x A video by economist Milton Friedman highlighting the benefits of free trade and criticized Peter NavarroTrump’s commercial advisor and main ideologist of Trump’s tariff policies, ensuring that: “Navarro is darker than a sack of bricks.” According to published The Washington Postthe confrontation between Musk and Navarro has been climbing. Musk has publicly denounced that these policies are harmful, not only for their companies, but also for the American economy in general. These statements show the distancing between Musk and Trump’s government. Tesla is more than an assembler. The origin of the crossroads between Musk and Navarro were A few statements in which the Economic Advisor of the White House assured that Tesla was little more than a pieces. Tesla is among the companies most affected by tariff policies. According to Nikkei Asiabetween 20% and 25% of the components used in the manufacture of Tesla cars are imported, while 40% of materials related to Electric batteries They come from Chinese suppliers, although these batteries and their cars are manufactured in the US gigafactories. However, the main stumbling block is not the extra cost of its supply chain for tariffs, but the voltage generated with Chinawhere the brand enjoys A privileged position And Musk had been acting as a mediator bridge. If the Chinese government intensifies its offensive against US commercial interests, the competitiveness of Tesla in front of byd or other manufacturers. “It is important to note that Tesla has not been unscathed from this problem. The impact of tariffs on Tesla remains significant,” public Musk a few days ago. Space tariffs: its effect in Spacex. Spacex has also felt the coup of tariffs in their meats. Export restrictions from China and Tariffs to China They are being a serious obstacle in the Company’s supply chain. “Tariffs are generating challenges in various facets of Spacex operations, including the costs of the supply chain, international contracts and the regulatory environment,” He pointed outto Forbes Maxime Puteaux, main advisor of the space consultant Novaspace. This problem could have long -term consequences. On the one hand, they affect Spacex’s ability to comply with international contracts, including those of the Satellite display For Starlink. On the other hand, these increases could slow down and even put development at risk of projects such as Starship, a key piece for future missions to Mars. Musk has warned that this type of commercial policies endangers American technological leadership in strategic sectors such as aerospace. “There are certain components or elements that are used in the construction of high -tech products such as Spacex that do not have many alternative suppliers, so the risk of concentration is aggravated when costs increase exponentially,” declared to Forbes James Gellert, Executive President of the Raphydrification Supply Chain Analysis Firm The AI ​​is not fought. The AI ​​does not get rid of the scourge of tariffs, so Xai, the growing company Musk’s artificial intelligence, also faces some problems for tariffs on key components, such as electrical equipment and servers for Your data centers. This increase in expenses not only affects the competitiveness of the company, but could limit its ability to face international rivals in the field of artificial intelligence, a Sector where China and Europe are advancing quickly. Collateral damage of tariffs in x. In the commercial war caused by tariff that economists predict. One of the main sources of X income is advertising. The economic difficulties of companies can make the company suffer much more for The lack of advertisers. In addition, the social network of X is much more exposed to indirect reprisals of the affected countries, which could harden their policies for privacy and data protection, matter that already is being investigated x In Europe, as he published The New York Times. In Xataka | The great fortunes are bleeding with the collapse of the bag. Warren Buffett has hit his old recipe again Image | Flickr (The White House)

The US has finally formalized the 104% tariff to China. Act then Apple has ceased to be the most valuable company

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There is no truce for large technological ones. This same afternoon, The White House has made official A 104% tariff to imports from China. The decision, which marks a new tension peak in the commercial war that Donald Trump unleashed, has not taken to agitate the markets. The consequences have been immediate. Apple, the great victim. Although in Spain it is almost midnight, in The east of the United States the markets have just closed with red numbers. Apple led the falls with a collapse of almost 5% in a single daywhich adds to the accumulated retreat of 23% since this new wave of tariffs began last week. The company has seen how its stock capitalization fell to 2.59 billion dollars. That decrease has been enough for Cupertino’s firm to lose the most valuable quoted company title in the world. The throne is again for Microsoft, which has closed the day with an even more pronounced fall (-7%), but with a slightly higher capitalization: 2.63 billion. A rivalry that remains alive. In the last five years, Apple and Microsoft have alternated several times the leadership in the markets. However, since mid -2024, Apple had established itself at the top, benefited by the good behavior of their income and the trust of investors. Microsoft, meanwhile, suffered a correction in the middle of last year, when doubts began to emerge about the sustainability of their investments in artificial intelligence. The market feared that the expense was excessive and unprofitable in the medium term. Falls in chain. The punishment has not been exclusive to Apple. Other great technology have also closed in red. Nvidia, third company for stock market capitalization globally, has dropped 1.37%. Amazon has retreated 2.62%, while Alphabet (Google) has lost 1.78%. Nor has Asml, the Dutch giant of the semiconductors, who has suffered a 3.32%drop. The origin of the conflict. It all started last week, when the Trump administration decided to reactivate commercial pressure on China with a 34% tariff on certain products. The measure was presented as a “reciprocal” action, but in Beijing it did not like. The Ministry of Commerce responded with a warning: “If the United States insists on following its own path, China will fight until the end.” Trump imposed an ultimatum: if China did not turn before Tuesday, it would impose a new 50%tariff. Beijing did not yield, and Washington either. In fact, in the last hours it had been leaked that the Chinese government even valued the distribution of American films as a form of symbolic retaliation. The result: confirmed climbing. The lack of agreement has led to the announcement that the markets have exploded: the new 50% tariff comes into force on Wednesday, shortly after midnight in Washington. In addition to existing taxes, the total exceeds 104%. Images | Xataka with chatgpt In Xataka | The US tariffs are already hurting two of the companies that support Taiwan’s economy: TSMC and Foxconn

Europe has proposed a 0% tariff for its cars. The only problem is that they have no cars to sell us

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The United States has hit first and Europe tries to defend itself through negotiation. That is what indicates the first reaction of the European Union to tariffs of 25% imposed by the Donald Trump government to cars, the pieces that compose them, steel and aluminum. Also to the 20% tariff in flat rate format that the United States has imposed on all the countries of the European Union. The response of the European Union has been to put the table and sit down to negotiate. Europe plays the future of many sectors but the car is especially critical. According to UGTon average in Europe, 3.2% of each country’s employees work in the production of vehicles and engines or in activities associated with them such as repair or distribution and sale. The document mentions the Draghi reportthe result of a study commissioned by the European Union to which the European Central Bank was to seek solutions to the European economic decline against emerging powers. It pointed out that in Europe there are 13.8 million people working in the automobile sector, representing 6.1% of the active population. According to the European CommissionWe export vehicles to the United States worth 38.9 billion euros. Only the United Kingdom, who bought cars worth 34,300 million euros, rivals this country. To this we must add that a multitude of European vehicle manufacturers produce in Mexico or Canada as bridges to a cheaper entry in the United States. Vehicle shipments affect German manufacturers to a greater extent. The group Volkswagen is stopping his deliveries in the United States and its shipments on a railroad from Mexico. Mercedes is considering reduce your offereliminating smaller models and, therefore, that report lower profit margin. BMW, for the moment, It seems that it will absorb tariffs. And Stellantis too is sending home to workers from and outside the United States to produce a lower amount of cars. An impossible response proposal To try to save the situation, the European Union has put on the table operate with a zero tariff for vehicles and industrial goods. In The world collect the words of Ursula von der LeyenPresident of the European Commission, who recalled that the proposition on vehicles was already made last February. In the press conference to present the measure, from the European Commission it has been stressed that they did not obtain an adequate response. And the same has happened now. Yesterday afternoon, Donald Trump left the cameras to threaten China with raising tariffs even more and pointing out that the European proposal does not convince him. For the president of the United States, it is not enough. “The EU has been very hard over the years. I always say that it was formed to harm the United States in commerce. That is why it formed (…) joined to create a monopoly situation, to create a unified force against the United States in trade. (…) we pay to protect them militarily and play it in commerce. So it is not a good combination,” The country. The problem for Europe is that The commercial deficit of the United States with Europe in the purchase and sale of cars is very high and from the US government they are not willing to accept that Europe compensates for part of these losses (and other products sold to the United States) with services. In spite of everything, the balance remains positive for Europe, as is checked in this graph of eldiario.es. According to Acea15% of vehicles exported by Europe are destined for the United States. However, the value is high because 22% of the money obtained from exports worldwide comes from the United States. Those 38,500 million euros contrast with the 7.7 billion euros that we import from the country. By units, Europe sent 749,170 light cars to the United States while we bought 164,857 vehicles. On average, a car sold to the United States costs around 51,400 euros. Back, each car sold by the United States to Europe costs about 46,800 euros. This explains that if the United States only wants a balanced trade balance between vehicle entry and exit is almost impossible to meet. The only proposal that came out yesterday from North America is that Europeans buy the energy produced there to compensate for the commercial deficit that the United States has in the purchase of goods. But, in addition, there are many reasons why Europe cannot match in sales the purchases that the United States makes of our cars. First of all because of a purely cultural problem, the United States does not manufacture cars that fit with European philosophy. In general, they manufacture cars of extremely large dimensions for European cities, with larger engines and gastons than Europeans. And not only that, the United States has encountered the problem that much of the manufacturing automobile industry has left the country to place in Mexico and Canada. Commercial treaties with these countries allow them to sell cars “to the American” producing them cheaper than within their borders. However, Europe has been finding a productive market for each car. The highest cost (but greater profit margin) are manufactured, above all, in Germany and France where the costs are higher. The little ones occur in Spain or in countries with lax commercial treaties such as Morocco or Türkiye. Only within its borders (Germany and Poland) distortions such as the United States and Canada are produced. The problem for the United States is that Europeans do manufacture cars that interest there, sending them from Europe or from Mexico and Canada, but they already manufacture cars that interest the Europeans themselves. The United States manufactures a type of vehicle that is not demanded in Europe and, in fact, brands such as Ford have been manufacturing vehicles that interest us locally manufacturing on our ground as the Ford Fiesta has beenthe focus, the puma or the kuga, among many others. In fact, Ford itself is clear that the place to produce the few Ford … Read more

In their obsession with the US tariff

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Wars do not understand names, and commercials much less. In that crazy Tariff race in which the United States seems to have signed up to all directions, it has been encountered, for example, with Diego García Island. The rate imposed is not surprising if it were not, in reality, an atolón that serves as a secret basis for … Washington. There is much more, because Trump has also imposed tariffs on islands that lack human population or, in the best case, to penguin communities. An unusual ad. It happened a few hours ago and you have hardly been able to escape the news: in the presentation of the Liberation Day RatePresident Donald Trump surprised the entire planet by including in his list of commercial sanctions to territories that lack significant economic activity or even stable population. In the Official White House List Virtually irrelevant enclaves appear in international trade that, however, will be subject to taxes of up to 50%, generating astonishment due to the lack of apparent economic criteria in their selection. In a ceremony at the White House, Trump showed a large poster that detailed alleged commercial barriers imposed on the United States, inexplicably including a list that we go on to detail. Heard Islands and McDonald. It is probably the first time that many hear about them. It has its logic. These remote islands are external territories of Australia located in the Indian Ocean, to more than 4,000 km of perthand known only for its glaciers, colonies of penguins and elephant seals. Cataloged as Unesco World Heritage, have been affected with a 10% tariff. The islands, described by CIA itself As a “desolate” territory and “covered in 80% per ice”, they do not register economic activity since 1877, when the extraction of marine elephant oil ceased and were abandoned by their only inhabitants, former seal hunters. Coconut Islands and Jan Mayen: Microterritories. Another Australian enclave included is the archipelago of The coconut islandsinhabited by about 600 people, whose exports (mainly ships) depend by 32% on the US market, and now face A 10% tariff. At the opposite end of the world, Norwegian island of Jan Mayena former shog station without permanent residents and with economy absolutely nilit has also been reached by the same tax, despite its commercial insignificance. In fact, Australian prime minister, Anthony Albanese, has already expressed his bewilderment And concern by stating that “no place on earth is safe,” underlining the absurd nature of including territories without real productive capacity. Diego García Tokelu, Saint Pierre and surrealism. Of all the taxes announced, we are facing the More bleeding example. Tokelauan autonomous territory of New Zealand made up of three atolls and a population of 1,600 people, whose modest economy is 8 million dollars with exports of just $ 100,000, now they must pay 10% upon entering the United States. But the most drastic case is that of Saint Pierre and Miquelona tiny French territory near Newfoundland, one with just 5,000 inhabitants, whose exports of seafood and crustaceans now face A 50% tariffexceeding even 20% applied to the rest of France under the rules of the European Union. The example of Lesoto. For its part, Lesothoan African country without even exit to the sea and with an economy oriented to exports of diamonds, textiles and wool, will suffer a 50% tariffs about 20% Of their shipments that go to the United States, which represents a very hard blow for its fragile economy of 900 million dollars annually. The key to understanding the varapalo of these micro nations is How has calculated United States tariffs. It is not that the tariffs that these territories have over Washington, but of their commercial surplus with the United States. In this way, yes, let’s say that Lesoto sells it only and exclusively an African fruit to Washington, and does not buy anything (or almost nothing) back, the African country is a huge surplus over the United States, although it is obviously not to “take advantage” of them. Well, as tariffs have calculated them by dividing surpluses by total exports to the United States, they make a tremendous hole. Plot Twist: Allied bases. We said it at the beginning. The United States has even shot at the foot by adding tariffs to enclaves where they basically operate, in some cases, as in Diego Garcíawith Secret military basesor with relevant territories for American national security. For example, the British Indian Ocean Territorywhere joint military bases are located, shared by the United Kingdom and the United States, will face 10% tariffdespite the fact that their only population is … American military and contractors. The same happens with Marshall Islandsthat in addition to hosting the American base of Kwajalein For ballistic tests, they are under the formal defense of Washington through a free association agreement. Their exports, although they do not have the United States as the main destination, will also be subject to an additional 10%. Without clear economic criteria. In summary, the announced tariff pack seems to affect indiscriminately to Territories without weight In the commercial balance or even Without any economy. Far from focusing only on great powers, the measure reaches uninhabited islands, islets with penguins, own military bases and forgotten enclaves, generating confusion and questioning the logic behind the commercial strategy of the Trump administration. Plus: The real impact of these rates in some cases will be null, but in others, Like Saint Pierre and Miquelon Or the same Lesoto, could cause disproportionate consequences for extremely tiny or simply dependent economies. Image | Australian Antarctic Division, Wikimedia In Xataka | Trump tariffs have caused the Big Tech debacle in the stock market. And propose a slowdown in investment in AI In Xataka | The United States raises commercial tension with a new blow: it will impose 25% cars tariff made from the country

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