Liam Fox has warned a “worst of both worlds” soft-Brexit customs union would result in the UK market being treated as commodity by the EU in its own trade arrangements. In a letter to the chairman of the backbench 1922 Committee Sir Graham Brady seen by The Telegraph, the international trade secretary also lays out that agreeing to a post-Brexit customs union with Brussels would mean the UK would have to apply the bloc’s Common Customs Tariff (CCT) on third-country goods and would “stymie the UK’s ability to open markets around the world.”The warnings come as the Government continues negotiations with the Opposition to gain support for Prime Minister Theresa May’s controversial Withdrawal Agreement, with Labour pushing for a customs union with the EU. Dr Fox points out that a post-Brexit customs union agreement with the EU would be “not a meeting of equals” but where the UK market would be treated like a commodity by the … [Read more...] about Fox Warns Against Free Trade Killer Customs Union Where EU Would ‘Trade’ UK Market Like Commodity
WASHINGTON (AP) — Abandoning his threat to immediately seal the southern border, President Donald Trump warned instead that he’d slap tariffs on cars coming to the U.S. from Mexico unless the Mexicans do more to stop the flow of migrants and drugs to the U.S. In his latest backtrack in recent days, Trump told reporters Thursday he would try the “less drastic measure” before resorting to his standing border-closure threat. “Mexico understands that we’re going to close the border or I’m going to tariff the cars. I’ll do one or the other. And probably start off with the tariffs,” Trump said. He added later: “I don’t think we’ll ever have to close the border because the penalty of tariffs on cars coming into the United States from Mexico, at 25 percent, will be massive.” It was the latest, seemingly sudden attempt at new leverage by a president struggling to solve what his administration has called a border … [Read more...] about Trump drops border shutdown threat and proposes auto tariffs
As President Donald Trump studies a Commerce Department report on the impact of car imports, lawmakers and industry groups are bracing for yet another hit on trade. On Sunday, the Commerce Department sent Trump its long-awaited report on whether or not to impose new duties on imported vehicles under a national security rationale. The report’s contents have not been released to the public or apparently to members of Congress. Senate Finance Chairman Charles E. Grassley of Iowa told reporters Tuesday he did not have a copy of the report but would request one. The Finance Committee heads Senate oversight on trade issues. Trump, who has repeatedly threatened to levy new duties on foreign-made cars, particularly from the European Union, has 90 days to review the Commerce Department’s recommendations. He is not required to act on them, however. If the department determined there are national security concerns, the report sent to the president would include recommendations … [Read more...] about Lawmakers are bracing for a Commerce Dept. report on car import tariffs
MPs are set to hold key votes next week on the terms of Brexit, the outcome of which could determine whether the UK has greater flexibility to set its own trade tariffs.A second "meaningful vote" on the Brexit agreement negotiated by Prime Minister Theresa May is due to take place on Tuesday.However, if no agreement can be reached, and the UK ultimately leaves the European Union on 29 March with no deal in place, reports last week suggested the UK government might cut trade tariffs on between 80% and 90% of goods, with some tariffs being scrapped completely.Business Secretary Greg Clark told the BBC that new tariff schedules would be published only after next week's vote on Mrs May's Brexit agreement, if it became clear the UK would be leaving the EU without a deal.He said the changes would have "big implications" for some sectors.What is a tariff?A tariff is a tax applied only to internationally traded goods. In the great majority of cases, tariffs are applied to imported goods by the … [Read more...] about Brexit: Could the UK drop tariffs to zero?
New York (CNN Business)Ohio is the type of state that steel tariffs are supposed to help, with a smattering of mills that have struggled for decades against brutal competition from China. It's also a state that could be disproportionately hurt by tariffs because a number of Ohio's manufacturers use imported steel. Some manufacturers became collateral damage because of retaliatory tariffs on goods they export. With those two opposing forces, the tariffs appear to have been an economic wash for Ohio, according to a new analysis. Ohio State University professor Ned Hill published a comprehensive report this week on how tariffs have played out in the Buckeye State. The takeaway: Most of the new investments that steel producers have made since the tariffs went into effect probably would have happened anyway, because of the strong economy. For many more companies, tariffs have just meant increased costs, which they've mostly been able to pass on to customers. Tariffs have raised prices for … [Read more...] about To understand the impact of Trump’s tariffs, look to Ohio