Lotus is planning to end production of its sportscars in the UK and shift it to the US, a move that would put 1,300 jobs at risk and represent a major blow to the British car industry. The carmaker’s Chinese owner, Geely, is looking at options including manufacturing its Emira sportscar in the US, and permanently stopping production at its factory in Hethel, Norfolk, according to a person with knowledge of the company’s thinking. No final decision has been made. Workers at the factory, in a former second world war…
Tag: Business
Nike says Trump tariff war could cost it $1bn
Nike expects costs to increase by about $1bn (£728m) as a result of Donald Trump’s tariff war, as the sportswear company looks to significantly reduce its manufacturing in China. The market value of the company has plummeted by a third over the past year and it is taking action to reduce the hit, including price increases in the US and sourcing from other countries. “These tariffs represent a new and meaningful cost headwind,” said Matthew Friend, its chief financial officer. “With the new tariff rates in place today, we estimate…
US reaches deal with China to speed up rare earth shipments, White House says, amid efforts to end trade war
The United States has reached an agreement with China on how to expedite rare earth shipments to the US, a White House official has said, amid efforts to end a trade war between the world’s biggest economies. President Donald Trump said earlier on Thursday that the US had signed a deal with China the previous day, without providing additional details, and that there might be a separate deal coming up that would “open up” India. During US-China trade talks in May in Geneva, Beijing committed to removing non-tariff countermeasures imposed…
The world wants China’s rare earth elements – what is life like in the city that produces them?
Central Baotou, an industrial hub of 2.7 million people that abuts the Gobi desert in north China, feels just like any other second-tier Chinese city. Large shopping malls featuring western chains including Starbucks and KFC stand alongside street after street of busy local restaurants, where people sit outside and children play late into the evening, enjoying the relative relief of the cooler temperatures that arrive after dark in Inner Mongolia’s baking summer. But a short drive into the city’s suburbs reveal another typical, less hospitable, Chinese scene. Factories crowd the…
Chinese exports to UK rise as firms seek to avoid US tariffs
Chinese exports to the UK jumped in May, according to data from Beijing, raising the prospect of a flood of cut-price goods as firms look for alternative markets to avoid Donald Trump’s tariffs. Data published by the Chinese government showed a 16.1% increase in exports to the UK in May compared with the same month last year, hitting the highest level since February 2022. That could be an early signal of an acceleration from the 10% annual rate of increase in April in the UK data published by the Office…
Chinese carmaker Chery Auto ‘actively considering’ building UK factory
The Chinese carmaker Chery Auto is considering building its second European factory in Britain. After launching two brands, Omoda and Jaecoo, in the UK in September, Chery’s UK director, Victor Zhang, said the company is making inroads in the British market with the appetite growing for Chinese cars. He was speaking at the annual conference of the Society of Motor Manufacturers and Traders, where the business secretary, Jonathan Reynolds, admitted that there was “still a lot of work” to do in negotiating away all of Donald Trump’s tariffs against the…
Tariff dodgers take big risks to cut small corners | Gene Marks
If you put up a barrier, people will find a way around it. So its not shocking to read recent news stories about how some businesses are trying to skirt around tariffs – particularly from China. They’re shipping goods through third countries, rather than directly from China, using special “shoppers” to skirt minimum quantity amounts, colluding with suppliers to falsify country-of-origin labels, undervaluing goods, or “assembling” products out of China where tariffs are lower. They’re creating shell companies in more tariff-friendly countries and even going so far as forging certificates…
BYD launches cheapest UK model in bid to overtake Tesla as biggest electric carmaker
The Chinese manufacturer BYD has launched its cheapest model in the UK, in the latest stage of its efforts to overtake Tesla as the world’s biggest electric carmaker. The Dolphin Surf will start at £18,650, a price that puts it among the cheapest new vehicles on sale in Britain. BYD is vying with American rival Tesla, run by Elon Musk, for the crown of world’s biggest battery carmaker, although BYD already beats Tesla when including figures for hybrid cars, which combine a battery with a petrol engine. The Chinese carmaker…
Trump trade deal shows how vital China’s rare-earth metals are to US defense firms
The draft trade agreement with China announced by Donald Trump on Wednesday would ease concerns from top US military suppliers about rare-earth metals and magnets that, if cut off permanently, could hobble production of everything from smart bombs to fighter jets to submarines and other weapons in the US arsenal. While the deal has not yet been finalised, it may reassure major defense companies such as Lockheed Martin, the largest US user of samarium – a rare-earth metal used in military-grade magnets – whose supply is entirely controlled by China.…
Trump says China will face 55% tariffs as he endorses trade deal
Donald Trump has endorsed the US-China trade deal struck in London that will ramp up supplies of rare earth minerals and magnets needed for the automotive industry, saying it will take total tariffs on Beijing to 55%. Acknowledging that his Chinese counterpart, Xi Jinping, still needed to give his final approval on the terms agreed late on Tuesday night at Lancaster House, the US president disclosed the pact would also facilitate Chinese students’ access to US colleges. The 55% tariff total appears at first glance to be a hike from…