Tesla Free Trade Agreements

BMW is another relatively small car manufacturer affected by the new Chinese tariffs. BMW seems to have developed its manufacturing strategy for a free (or freer) commercial world. The company basically builds limousines in Germany and SUVs in America. Vehicles pass in front of the other at sea. Net imports and exports are low, but with new tariffs, the impact will be considerable. Finally, Tesla also hopes to make vehicles for countries outside of China in the new gigafactory, Musk said, in order to eventually avoid some of the trade problems the company has experienced during President Donald Trump`s ongoing trade war. The biggest trade problem for U.S. automakers is the renegotiation of Nafta or the North American Free Trade Agreement. Since the early 1990s, when Nafta was introduced, the global auto industry has treated North America as a geographic monolith.

In fact, until the recent trade conflicts, it was difficult to get data by country for the United States. Industry. Even the U.S. auto industry didn`t think about North America from country to country. Tesla Inc. has been granted exemption from a 10% Chinese tax on auto sales and bypassed trade tensions with the United States following Chief Executive Elon Musk`s visit to the country. The trade war between the U.S. and China is dragging on and the latest salvo is that China is scouring $75 billion in new tariffs on U.S. goods, including cars. However, as the trade war continues to escalate, Tesla could, thanks to a new evolution in China`s domestic economic policy, fly away from the calculation of the customs impact. Then my miracle seemed to stumble upon an answer, thanks to another Teslarati author`s coverage of the extension of the Shanghai China Free Trade Zone (FTZ) to Lingang, the area where Tesla`s latest facility is located.

(Thank you, Simon!) As part of the country`s continued opening of markets to economic globalization, Shanghai and Lingang are expected to be a free market region similar to Hong Kong`s. Most products entering the FTZ are exempt from tax. The deal with the Shanghai government will allow the Silicon Valley automaker to build a 100 percent factory in the city`s free trade zone, the people said. The deal, the first of its kind for a foreign automaker, could allow Tesla to cut production costs, but it would likely still be likely that China`s import tariff would be 25 percent. Does this mean that the benefits of the FTZ will be eliminated as soon as Tesla`s cars leave the area to be sold in stores? Looks like. Well, maybe not all the benefits....