Global trade has been disrupted by President Trump’s latest tariff announcements. While some nations have already retaliated against American goods through their own trade policies, others are still looking for ways to work out a mutually beneficial settlement with the US.
With trade tensions at an all-time high, Nissan, a major Japanese automaker, has altered its vehicle shipments to the United States and halted production.
America levies tariffs on goods and services worldwide
Wide-ranging taxes on goods imported from other nations have recently been enforced by the Trump Administration. Trump claims that the tariffs are meant to preserve jobs and support economic growth in the United States.
A minimum 10% tariff will be applied to all nations, with certain nations subject to considerably higher charges of up to 50%. The president claims that the increased tariffs will increase tax receipts, encourage American consumers to buy more American-made products, and draw large amounts of foreign investment to the US.
Foreign governments’ reactions to the tariffs have been mostly negative, and several of the United States’ closest trading allies, including Canada and Mexico, were caught off guard by the move.
Furthermore, the impact of the increased tariffs on the cost of living worries a lot of Americans.
Despite Administration officials’ assurances, former International Monetary Fund (IMF) head economist Ken Rogoff said the likelihood of a recession in the UC increased to 50%.
The US tariffs and Nissan’s response
In response to recent tariffs, Japanese automaker Nissan has declared that it will no longer accept new orders for its Infiniti QX50 and QX55 SUVs from the US market.
The car firm presently produces the automobiles at the Cooperation Manufacturing Plant Aguascalientes (COMPAS) plant in Mexico, which it co-manages with Mercedes-Benz, a German automaker.
“We are reviewing our production and supply chain operations to identify optimal solutions for efficiency and sustainability,” Nissan said. “The company currently has ample inventory at our U.S. retailers that is unaffected by the new tariffs.”
All imported automobiles are now subject to a 25% tariff imposed by Trump. As they struggle to find a way to deal with the tariffs, many large automakers have stopped producing their cars in the US market.
However, given that the Infiniti QX50 and QX55 SUVs are somewhat of a “mythical” car that only seems to be sold to the US based on data from Mexico’s national statistics department, Nissan’s revelation is unexpected.
But according to a Nissan representative, the cars are also shipped to Canada and the Middle East.
Rumors that are circulating within the Trump Administration
In addition to the new tariffs, the Trump Administration has made other statements and actions that have sparked speculations around the country, especially in relation to Elon Musk, the CEO of Tesla, and the newly established Department of Government Efficiency (DOGE).
In order to provide the Trump Administration with advice on where to reduce wasteful federal spending, the Trump Administration hired Musk to lead the new, outside organization.
With the overall objective of reducing government spending by $2 trillion before the conclusion of their contract, DOGE is anticipated to remain an external advisory body to the Administration for 18 months.
Recently, there have been rumors that Musk might have received a request to depart the Trump Administration.
Musk’s status as a “special government employee,” which is subject to a 130-day work limit under federal law, has caused confusion, though.
Keeping this in mind, Musk is anticipated to depart the Administration in May as a result of the working day cap rather than any resentment for the Trump Administration.
Source: ecoticias
