The Trade Guys welcome another special guest, Cody Lusk, who is the president and CEO of the American International Automobile Dealers Association (AIADA). Lusk joins the Trade Guys in the studio right after the Trump administration announced that it would delay its decision on levying tariffs on auto imports. So, what will this mean for the auto industry? Lusk tells us what he’s hearing and what’s on the mind of auto dealers across the nation.
What We’re Reading
"Mich. firm 'out of business in three months' if auto tariffs kick in"
"Mary Buchzeiger wakes up each day wondering if the Auburn Hills-based auto supplier she's spent years building is on path to earn a billion dollars in annual sales … or spiral into bankruptcy."
"Her uncertainty rests on whether President Donald Trump's proposed 25 percent tariff on foreign cars and parts is adopted. If it is, Buchzeiger, 44, will brace for the worst."
Why it matters: The specter of tariffs on autos and parts continues to loom over the industry, sending chills down the spines of businesses that have reaped the benefits of relatively open auto trade.
Key question: How will the tariffs impact businesses, like Lucerne International, which sells parts?
"U.S. drops agriculture demand from NAFTA talks: Mexico farm lobby"
"The United States has dropped a contentious demand from the renegotiation of the North American Free Trade Agreement to impose restrictions on Mexican agricultural exports, Mexico's top farm lobby said on Sunday."
Why it matters: The U.S. has made a concession to Mexico by removing a demand to more easily allow farmers to bring trade remedy cases in certain seasons. The U.S. proposal divided the agricultural community and was a non-starter for Canada and Mexico.
Key questions: Why did the U.S. take this proposal off the table?Did they get anything in return? What does the concession signal about the status of the talks?
"Low expectations as U.S., China send 'second-level' officials to 'token' trade talks"
"China and the U.S. will restart trade talks in Washington, D.C., later this month, but the move is unlikely to de-escalate President Donald Trump's trade war with Beijing."
"China is sending a lower-level functionary without any real power to meet with a second-tier official at the U.S. Treasury, a sign of Chinese irritation that Treasury Secretary Steven Mnuchin was unable to deliver when they thought they had a deal a few months ago, said a source close to the talks."
What it means: Even as the U.S. and China try to reach a deal by November, they're restarting talks by sending only relatively low-level officials without authority to strike a broad deal, dimming prospects for an agreement.
Key question: Why shift talks to these officials, a Chinese vice premier and Treasury undersecretary, when historically negotiations have been done at the principles level.