Free Trade Agreement Commences, Tariff Hike on Drones, Vehicle Sales and TikTok Bill
US Lawmakers Push for Tariff Hike on Chinese-Made Drones
A group of bipartisan lawmakers in the US has asked the Biden administration for a tariff increase on Chinese-made drones, including those shipped from other countries, to counter national and economic security threats. The lawmakers specifically targeted drone makers like DJI and Autel and asked for new incentives to boost US drone manufacturers. In their letter, they noted that the current 25% tariff on Chinese drones was insufficient to combat the surge in imports and raised concerns about Chinese drones’ national security risks and the circumvention of US law through transshipment. The Chinese drone manufacturers command more than 77% of the US hobby drone market and over 90% of the market for commercial drones.
Highlights:
- US lawmakers seek for a tariff hike on Chinese-made drones.
- Target drone makers include DJI and Autel, holding more than 77% of the US hobby drone market and over 90% of the market for commercial drones.
- The lawmakers raised concerns over national security risks posed by Chinese drones and the circumvention of US law through transshipment.
US New Vehicle Sales Surge in March
According to a joint report by industry consultants J.D. Power and GlobalData, new vehicle sales in the US are projected to increase by 12.1% in March. This growth is driven by strong demand and improved vehicle availability. Despite supply chain challenges, the demand for personal transportation has remained resilient. As a result, manufacturers and dealers have been offering larger discounts, leading to higher volumes but lower profit margins. The report also reveals that average transaction prices are expected to decrease by 3.6% compared to March 2023, while average incentive spend per vehicle has increased by 66.6% from a year ago. Retailer profit per unit is projected to decline by around 32% in the month.
Highlights:
- US new vehicle sales predicted to rise by 12.1% in March.
- Increased vehicle availability and strong demand drive the growth.
- Average transaction prices estimated to decrease by 3.6% compared to the previous year.
- Retailer profit per unit expected to decline by approximately 32% in March.
New Zealand and European Union Free Trade Agreement to Commence on May 1
The free trade agreement between New Zealand and the European Union (EU) is set to take effect on May 1. The agreement was ratified by New Zealand’s parliament, and the country promptly notified the EU about the ratification. The deal, signed in July 2023, is expected to bring several benefits for both sides. New Zealand anticipates advantages for its beef, lamb, butter, and cheese industries, as well as the removal of tariffs on exports like kiwi fruit. On the other hand, the EU will see lifted tariffs on its exports, including clothing, chemicals, pharmaceuticals, cars, wine, and confectionery. The EU is currently New Zealand’s fourth-largest trade partner, with trade between the two valued at NZ$20.2 billion ($12.10 billion) in 2022.
Highlights:
- New Zealand and the EU’s free trade agreement will take effect on May 1.
- The agreement has been ratified by New Zealand’s parliament and notified to the EU.
- The deal is expected to benefit New Zealand’s livestock and dairy industries, as well as remove tariffs on kiwi fruit exports.
- The EU will see lifted tariffs on its exports, including clothing, chemicals, pharmaceuticals, cars, wine, and confectionery.
U.S. House to Vote on TikTok Crackdown Bill
The U.S. House of Representatives is set to vote on a bill requiring TikTok’s Chinese owner, ByteDance, to divest the popular short-video app within six months or face a ban in the U.S. The bill, backed by fast-track rules, demands two-thirds support from House members to pass. Despite little public debate, the House Energy and Commerce Committee voted 50-0 in favor of the bill. TikTok’s CEO is scheduled to visit Capitol Hill for discussions with senators. While some lawmakers support the bill for user protection, concerns about First Amendment rights and business impacts have been raised. The fate of the legislation remains uncertain in the U.S. Senate, with differing approaches being considered.
Highlights:
- The U.S. House of Representatives to vote on a bill mandating ByteDance to divest TikTok within six months or face a ban in the U.S.
- House Energy and Commerce Committee voted unanimously in favor of the bill.
- Uncertainty surrounds the fate of the legislation in the U.S. Senate.
- TikTok’s CEO to visit Capitol Hill amidst ongoing discussions and debates over the bill.
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