Welcome to the Daily 5 report for Friday, Sept. 5. TGIF!
A U.S. appeals court ruling last week that struck down various Trump administration tariffs — pending appeals — received heavy coverage across the media landscape with little clarity on how it might impact the auto industry.
Turns out not much, as our John Irwin explains today in this story.
The ruling impacts only those tariffs that President Donald Trump implemented under the International Emergency Economic Powers Act of 1977, Irwin wrote. It does not include sectoral tariffs on vehicles, certain parts, steel and aluminum. Those duties, which have cost automakers billions of dollars, were implemented under Section 232 of the Trade Expansion Act of 1962, the story says.
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The best bet, at least until more trade deals are finalized such as the recent Japan agreement, is that elevated tariffs are here for the foreseeable future.
"Elevated tariffs are the new normal," Felix Stellmaszek, global leader of Boston Consulting Group's automotive practice, said in our story.
Not only are the Section 232 tariffs excluded from the case against the Trump administration, they're also likely to remain in place for years, experts told Irwin.
"Historically, they tend to stick for a long time," said Lorenzo Capucci, an international trade expert with BCG.
Meanwhile, yesterday's raid by U.S. immigration and law enforcement authorities at the 3,000-acre Hyundai-LG battery plant project in Georgia didn't go over well in South Korea.
The nation expressed regret that U.S. authorities raided the construction site and detained multiple South Korean nationals, Bloomberg reported. The foreign ministry said the economic activities of Korean investors, along with the rights and interests of its citizens, should not be "unjustly infringed" during U.S. law enforcement actions. Officials dispatched consular staff to the site, Bloomberg reported.
A U.S. Immigration and Customs Enforcement spokesperson said U.S. agents and local law enforcement "executed a judicial search warrant as part of an ongoing criminal investigation into allegations of unlawful employment practices and other serious federal crimes."
The U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives reported that up to 475 workers were detained.
It's a good bet this situation will come up next week at the Automotive News Congress in Detroit, with Hyundai Motor Group Executive Chair Euisun Chung scheduled to speak on Sept. 11.
That's it for now. If you want to see this story in your browser, click here.
— Philip Nussel, online editor
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