Supply Chain Research

The EU may coordinate a global cut in automotive tariff cuts in response to America’s section 232 review of the industry, including a zero-rating for completed vehicles. That would involve a convergence to America’s 2.5% MFN rate vs. the EU’s 10%, South Korea’s 8% and Japan’s zero rating. It would, however, also require a removal of non-tariff barriers to be effective. Such a move would also complicate NAFTA negotiations and may not avert the components element of the section 232 review. Automakers don’t appear too concerned about duties in the near-term with U.S. seaborne imports in Jun...