Chain Reaction: EU considers lifting auto tariffs on US imports
No one wants a trade war, and the EU may be the first to cave to U.S. demands.
Editor's Note: The following is a weekly column covering technology and regulation within the supply chain and logistics industries.
Is Trump's aggressive rhetoric getting us anywhere?
Despite the latest round of tit-for-tat tariffs with China, the European Union (EU) may consider lifting its tariffs on imports of American cars to avoid a trade war with the United States, POLITICO reported.
According to the report, Germany is pushing the move, and such a plan may be discussed closer to August when the European Commission president meets with U.S. President Donald Trump.
The Reaction: Don't forget, the reason Trump has been employing such hostile rhetoric and slapping tariffs on allies left and right is because he wants trade imbalances disadvantaging the U.S. to be righted.
Lately, Trump has complained about how the EU has tariffs on imports of American cars and America doesn't, putting American car companies at a competitive disadvantage.
It seems the EU is frightened by the specter of a looming trade war, so much so they're considering acquiescing to Trump's demands to balance trade with the U.S. Lifting tariffs on American car imports would not only help American car companies — which is what Trump wants — but could also deescalate tensions with the U.S. and open the door to more reasonable trade talks.
Trump may be employing hardball tactics, but the EU has to be practical: no one wants a trade war, and reflecting on a trading partner's concerns and demands may prove a smart move.
Tesla finally hits the Model 3 production goal
Well, they did it. From setting up assembly lines in tents in the middle of the desert to working a lot of overtime, Tesla finally hit its production goal of 5,000 Model 3s per week by the end of June and the close of their second quarter.
It's big news for the electric vehicle (EV) industry, as more automakers race to mass produce, since the Model 3 is marketed as the first mass produced consumer-friendly EV.
The auto startup's feat has done nothing to silence skeptics, despite the fact Tesla experienced a similar trajectory with the Model X, from delays to ramp-up issues, but then finally production victory.
The Reaction: It's tempting to undercut Tesla's triumph by pointing out that the car company's scrambling operations to make the deadline are not only inefficient but unsustainable, but temper that temptation with the reminder that Tesla has done this all before.
Tesla could smooth out its operations and continue humming along like it did after finally hitting its target for the Model X, or, it could finally cave to all of its financial pressures and supply chain problems, especially if Wall Street loses faith and the company stock tanks.
Only time will tell. Meanwhile, BMW is quietly stealing moves from Tesla and ramping up its own in-house battery production to mass produce EVs.
In case you missed it
General Electric filed a patent to use a distributed ledger to track 3-D printed parts in its supply chain. The Federal Motor Carrier Safety Association (FMCSA) denied electronic logging device (ELD) exemptions to small trucking companies.
The Federal Aviation Administration (FAA) wants commercial drone users to tell the agency about their drone experiences, and is urging said users to fill out questionnaire it originally announced in June.
Next week, the National Transportation Safety Board (NTSB) will investigate the recent Amtrak accidents, POLITICO reported.
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