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Senate Republicans want to end the EV tax credit before September 30
The U.S. Senate Republicans released a revised budget and tax bill late Friday that would eliminate the $7,500 credit for new electric vehicles and leases as well as $4,000 credit for used EVs by September 30. Prior to the new version, the credit would have been terminated 180 days after it was signed into law for new vehicles, 90 days after that for used vehicles. It would also have been terminated immediately for vehicles that were not assembled in North America or those that met other requirements. The Republicans have targeted EVs in a variety of ways, reversing former president Joe Biden's policies that encouraged the use of electric vehicles and renewable energies to combat climate change and reduce emission. The House of Representatives' version would extend the $7,500 tax credit for new-EVs through 2025 and 2026, respectively, for automakers who have not sold 200,000 electric vehicles before it is eliminated. The Senate bill includes a provision that eliminates fines for failure to comply with the requirements. Corporate Average Fuel Economy rules In a move designed to make it easier for automakers build gas-powered cars. The Republican bill exempts auto loan interest from tax for new cars manufactured in the U.S. until 2028. However, it phases out for individuals making more than $100,000 per year. Senate Republicans Dropped a bid to make the U.S. Postal The bill will scrap thousands of electric cars and charging equipment after a decision by the Senate Parliamentarian. The U.S. The U.S. President Donald Trump This month, a resolution was signed Congress has approved a bill to block California's historic plan to stop selling gasoline-only cars by 2035. This plan was adopted by 11 states, representing one third of the U.S. automobile market. (Reporting and editing by David Shepardson)
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China's flood-hit social security network expands as extreme rainfall takes its toll
China has increased the financial protections offered to segments of the population who are affected by flood control measures during extreme rain, including direct compensation and payment for livestock losses. Diverting floodwaters into areas adjacent to rivers in China is an important step to manage downstream flooding. China, as extreme rainfall increases, is using these areas more and more. Some of them were unused and populated with farms, crops and even residential structures, which has exacerbated social tensions. According to the revised rules for compensation related to flooding diversions, released late Friday, the central governments will now be responsible for 70% of the compensation funds. Local governments are responsible the remainder. The ratio used to be determined based on the actual economic losses of the local governments and their fiscal condition. For the first time, compensation will be paid for livestock and poultry that are unable to be relocated before floodwaters arrive. Prior to this, compensation was only available for the loss of working animal. The summer of 2023 saw almost 1,000,000 people relocated from Hebei, the province that borders Beijing. Record rains forced the authorities to divert water to populated areas to store it. This angered many who were angry about the loss of their homes and farms to save Beijing. China has designated 98 flood diversion zones spanning major rivers basins, including the Yangtze River Basin which is home to one-third of the population. Eight flood storage areas have been used during the Hebei floods of 2023. China Meterological Administration officials told reporters that since the East Asia Monsoon began in early June, the precipitation on the middle and lower Yangtze River has been two to three times greater than normal. They said that in other parts of China the daily rainfall measured at 30 meteorological stations, including Hubei and Guizhou, broke records during June. Guizhou, China, was at the center of China's flood relief efforts this week. One of its cities had been hit by flooding of a magnitude that only happens once every 50 years and with a speed that stunned its 300,000 inhabitants. This prompted Beijing on Thursday to pledge to relocate vulnerable populations and industries into low-flood zones and to allocate more space to flood diversion. (Reporting and editing by Kim Coghill; Ryan Woo)
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Denmark Extends Operating Life of Two Offshore Wind Farms
The Danish Energy Agency (DEA) has extended the production permits for the Nysted and Middelgrunden offshore wind farms, enabling the projects to continue producing electricity for 10 and 25 more years, respectively.These are two of the oldest offshore wind farms in Denmark, now granted an extended lifespan.Middelgrunden was originally granted a production permit in 2000, followed by Nysted three years later.To support its decisions, DEA required, among other things, an independent analysis of the remaining lifespan of the installations. In addition, the owners must perform extended annual maintenance inspections.Nysted Offshore Wind Farm is owned by Ørsted, PensionDanmark, and Stadtwerke Lübeck. It consists of 70 turbines with a production capacity of 161 MW, enough to cover the electricity needs of more than 130,000 households.Middelgrunden, owned by HOFOR and the Middelgrunden Wind Cooperative, is located just 3.5 km off Copenhagen near the Trekroner Fort and has become a familiar part of the cityscape for residents of Copenhagen and North Zealand. Its 20 turbines can supply approximately 20,000 households with green electricity annually.“It’s positive that wind turbines over 20 years old are getting the opportunity to continue producing green electricity for many more years. This primarily benefits the green transition, but it's also a sustainable use of resources that the facilities can continue operating safely and responsibly for a longer period,” said Stig Uffe Pedersen, Deputy Director of the Danish Energy Agency.Earlier in June, DEA also approved a 10-year extension for the Samsø offshore wind farm’s electricity production permit.
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California regulator: California should increase fuel imports and halt margin cap
California's Energy Regulator on Friday suggested new rules that would encourage private investment in fuel imports, and put a hold on the refiner profit limit. The regulator hoped to prevent gasoline prices in California from soaring as the state prepares for the closing of two major refineries. California Energy Commission's recommendations came as a response to Governor Gavin Newsom's letter requesting changes in the state energy transition effort by July 1. California will face higher fuel prices due to the planned closures of Phillips 66's and Valero Energy's refineries. CEC Vice-Chair Siva Gunda admitted that the closure of refineries could increase fuel prices in California. The state already has the highest gasoline prices in the U.S. Gunda said, however, the sticker shock will only be temporary. CEC estimated that gasoline prices would increase 15-30 cents per gallon immediately after the closure of refineries. According to AAA, retail gasoline prices in California averaged $4.61 a gallon on Friday. This is higher than the national $3.21 average. Gunda, CEC's Director, said that the CEC is looking at ways to increase capacity of third-party import terminals, bringing in and distributing more gasoline and jetfuel, while keeping existing refineries operational. In order to help with these efforts, the CEC has recommended that the program which capped the maximum profits refiners could earn from gasoline sales in the State be halted. The CEC said that additional analysis is required to ensure the program works as intended for protecting consumers. The statement said that the pause would last for "a reasonable length of time", but did not specify exactly how long it would be. The CEC asked Newsom to also take steps to stabilise crude oil production within the state. California's crude output has steadily declined from its peak of more than 1 million barrels a day in the middle 1980s to less that 300,000 bpd in last year. This is according to U.S. Government data dating back to 1981.
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Canada's steel manufacturers tell the government that its tariff protection measures for steel are not enough
Two of the Canadian steel industry representatives present at the meeting said that the measures taken by the government to protect the industry against the effects of U.S. Tariffs were insufficient. Steel producers met Patrick Haley, Assistant Deputy Minister for Trade and Finance, and other ministry officials on Thursday. They told them that the measures announced earlier in the month did not protect the steel industry from steel dumping, and could lead to mass layoffs. U.S. president Donald Trump raised import duties on aluminum and steel to 50%, up from 25% in the beginning of this month. Canada is the largest metals seller to the United States. Canada responded by announcing a series of measures including new tariff-rate quotes of 100% of the 2024 levels for imports of steel from non-free-trade agreement partners. At the meeting, representatives of the industry asked the government to extend the tariff quotas for unfair trade practices to all countries that have free trade agreements. They said that Europe and Asia are diverting their goods to Canada in order to avoid U.S. Tariffs, which makes domestic steel uncompetitive. Catherine Cobden is the President and CEO of Canadian Steel Producers Association. She said, "We do not think that the measures announced will meet our needs in this difficult time." Cobden was present at the meeting on Thursday with officials from the finance ministry. In a separate press release on Thursday, the Canadian Steel Producers Association stated that in its current format, the tariff-rate quota would do little to help its industry. The Canadian Steel Producers Association said that since March's first U.S. Tariffs, Canada's steel sector has lost 1,000 workers. More layoffs are possible, according to the association. Keanin Looomis, President of the Canadian Institute of Steel Construction (which includes steel fabricators and constructors), said that Thursday's meeting of the government was heavily focused on steel producers, pointing out that finished steel imported into Canada has no tariff protection. Loomis was also present at the meeting. The Canadian Finance Ministry responded to in a text message that its measures were a comprehensive, strategic package for the protection of producers and workers and a first step. Mark Carney, the Prime Minister of Canada, has threatened to increase the counter-tariffs for U.S. steel and aluminum in case Canada fails to reach a wider trade agreement with Trump by 21 July. Trump abruptly ended trade talks with Canada on Friday over its new tax that targets U.S. tech firms. These are temporary, calibrated measures which could be extended depending on the results of the ongoing talks with the United States. A spokesperson for the Finance Minister said that we are ready to adapt our response as necessary.
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China's rare Earths are flowing freely again, but at a price
Chinese rare earth magnets are now flowing into the automotive supply chain, reducing the threat of mass closures. However, automakers and suppliers still say that production plans face uncertainty and there is a risk of shortages. Nils Poel is the head of market affairs for supplier association CLEPA. He said that European suppliers received enough licenses to prevent widespread disruptions earlier this month. However, hundreds of permits are still pending. He said that the rate of issuance has "accelerated" from 25% to 60%, but in cases where end users are located in the United States or products are transported through a third country like India, it takes longer or is not given priority. He said that he felt that production would probably continue in July, and the impact of the shutdown will be manageable. "We have managed to avoid that at the moment. Ford CEO Jim Farley stated on Friday during an event in Colorado that, due to magnet shortages over the last three weeks, the company had been forced to close factories. He did not elaborate. Volkswagen stated in a press release that its supply of rare-earth components is stable, while Stellantis claimed to have addressed immediate production concerns. In April, China restricted the export of magnets and rare earths as a form of retaliation against U.S. Tariffs. There is still a lot of uncertainty three months after the U.S. tariffs about how China intends to enforce its complex and opaque export licensing system. Since the restrictions, exports of rare earth magnets from China are down by about 75%. This has forced some automakers to stop production in Asia, Europe, and the United States. From 'Full Panic' to 'Bare Minimum': The White House announced on Thursday that it had signed an agreement with China for the speeding up of rare earth approvals, without giving any details. Beijing announced that both parties confirmed the details of the agreement struck in London in early this month to resolve the issue with rare earths. It would then process export licenses according to the law. The existing system of export licenses was not altered by either party. In an interview with Fox Business Network, U.S. Treasury secretary Scott Bessent stated that under the agreement announced Thursday, rare earths shipments from China to the United States would be banned. еание All companies who have received them regularly in the past. Bessent stated, "I'm confident that the magnets are going to flow." "This is de-escalation." According to a senior executive from a major U.S. auto supplier and an expert in the supply chain of a major European carmaker, the situation is less tense now than it was two weeks ago. The two declined to be identified due to the sensitive nature of the matter. Unnamed European official said that China approves the "bare minimal" of licenses critical to European firms in order to prevent production stops. Kash Mishra, CEO of Dexter Magnetic Technologies in the U.S., said that only five licenses have been issued to this magnet manufacturer since April. These were for sectors other than defence. He said, "It is a long delay." It takes 45 days to complete the paperwork for the supplier and another 45 days before the licence is granted. (Reporting from Christina Amann, Giulio Pieovaccari, Laurie Chen, Beijing, and Vidyarajagopal, with additional reporting by Kalea, Hall, Guillaume, Nick Carey, London, and Kalea in Ann Arbor; editing by Jason Neely).
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DeepSeek banned from Apple and Google app stores in Germany
Apple and Google have been asked to remove DeepSeek, a Chinese AI startup, from their German app stores due to data privacy concerns. This follows similar actions elsewhere. In a Friday statement, Meike Kamp stated that she made this request because DeepSeek transfers personal data of users illegally to China. She added that the two U.S. technology giants will now have to review the request and decide if they want to block the app on German soil. Her office hasn't set a specific timeframe. Google confirmed that it received the notification and is reviewing it. DeepSeek has not responded to an inquiry for comment. Apple did not respond to a request for comment immediately. DeepSeek's privacy policy states that it stores a variety of personal information, including requests for its AI program or uploaded files on computers in China. Kamp stated that "DeepSeek was unable to provide my agency convincing evidence that German user's data in China is protected to a similar level to that of the European Union." She added that "Chinese authorities enjoy extensive access rights to data on individuals within the influence sphere of Chinese companies." She said that she made the decision because DeepSeek had refused to comply with the EU's requirements on non-EU data transfer or voluntarily remove its app in May. She added that DeepSeek had not complied with her request. DeepSeek shocked the tech world in January when it claimed to have developed an AI model that rivaled those of U.S. companies such as ChatGPT creator OpenAI, at a much lower price. Its data security policies have been scrutinized in the United States of America and Europe. Italy banned it earlier this year from their app stores, citing the lack of information about its use of data. The Netherlands also prohibited it for government devices. The Belgian government has advised officials to refrain from using DeepSeek. A government spokesperson stated that "further analyses" are being conducted to assess the approach to follow. In Spain, in February, the consumer group OCU requested that the data protection agency of the government investigate the possible threats posed by DeepSeek. However, no ban was enacted. The British government stated that "the use DeepSeek is a choice made by the public." A spokesperson for the British technology ministry stated that "we continue to monitor all national security threats from all sources to UK citizens, and their data." We will take all necessary steps to safeguard our national security if we receive evidence of threats. U.S. legislators plan to introduce legislation that will ban U.S. agencies from using AI models developed by China. Exclusively reported this week, DeepSeek aids China's intelligence and military operations. Hakan Ersen and Miranda Murray reported by Charlotte van Campenhout and David Latona. Alistair Smout contributed additional reporting from London. Matthias Williams wrote the article. Mark Potter, Louise Heavens, and Mark Potter edited it.
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In Pakistan, a flash flood has killed nine people as it sweeps away a family group
Officials said that at least nine members of one extended family were killed when floodwaters washed away children from a river in the north of Pakistan, and their relatives tried to save them by jumping into the water on Friday. District administrator Shehzad Mahaboob revealed that the family was having a picnic by the Swat river and the children had been taking pictures in the water when the flash flood struck. He added that relatives rushed to help but were overwhelmed by a monsoon deluge. Mahboob said it was too early to know how many children or adults died. He said that nine bodies had been recovered. Four family members are still missing, while four others were rescued. Shahid Ali Khan, the local mayor, said that a family group was on a visit to the beautiful and mountainous Swat Valley. Rescue official Shah Fahad stated that locals and over 80 rescue workers are searching for survivors. They went to take selfies. At that time, there was little water. The floodwaters swept the children away. It looked as if a dyke was breached, said a family member who refused to give his name on TV. Residents reported that victims had to wait more than two-hours for rescue services. Shiraz Khan, a local eyewitness and local resident, said that the two-hour cry for help was accompanied by screams and cries. He said that by the time the police and rescue personnel arrived, four people were already swept away. The current was so strong, even the rescuers found it difficult to get into the water. The provincial government has suspended several officials from the administrative and rescue services for their negligence. Later, the Provincial Disaster Management Authority issued an alert warning of high flood levels. Every year, during the summer, tens of thousands, mostly from the rest of Pakistan, travel to the north of Pakistan's peaks. In a press release, the office of Prime Minister Shehbaz sharif said that Sharif had "expressed his sorrow over the deaths of tourists." (Reporting and writing by Mushtaq Al; editing by Andrew Heavens, Hugh Lawson and Asif Shahzad)
Trump's latest trade war salvo includes tariffs on steel and aluminum imports
On Monday, President Donald Trump raised the tariffs on imports of steel and aluminum to a flat rate of 25% "without any exceptions or exclusions". This was done to help struggling industries. However, it increased the risk that a multi-fronted trade war would occur.
Trump signed proclamations increasing the U.S. aluminum tariff rate to 25%, from 10%. He also eliminated country exceptions, quota agreements and hundreds of thousands product-specific exclusions. An official at the White House confirmed that these measures would go into effect on March 4th.
Tariffs will be raised to 25% for millions of tons imported steel and aluminum from Canada, Brazil Mexico, South Korea, and other countries, which had previously entered the U.S. without duty.
Trump told reporters that the move would simplify tariffs for metals, "so everyone can understand what it means." "It is 25%, without exemptions or exceptions." All countries are included, regardless of where they come from.
Trump said that he would "consider" Australia's request to be exempted from the steel tariffs.
These proclamations are extensions of Trump’s Section 232 Tariffs from 2018. They were made to protect domestic aluminum and steel producers on the basis of national security. An official at the White House said that the exemptions have weakened the effectiveness of the measures.
Trump will also impose a North American standard that requires steel imports be "melted, poured", and aluminum imports be "smelted, cast" in the region. This is to reduce U.S. metal imports from China and Russia.
A White House official confirmed that the order extends tariffs on downstream products using foreign-made steel. This includes fabricated structural steels, aluminum extrusions, and steel strands for pre-stressed cement.
Trump signed the order in the White House and announced that he would announce reciprocal tariffs for all countries who impose duties on U.S. products over the next two business days. He also said he had his eye on tariffs for cars, semiconductors and pharmaceuticals.
When asked about the threats of retaliation from other countries in response to his new tariffs Trump replied: "I'm not bothered."
Peter Navarro, Trump's adviser on trade and commerce, said that the new measures will help U.S. producers of steel and aluminum and strengthen America's economy and national security.
He told reporters that the steel and aluminium tariffs 2.0 would put an end foreign dumping and boost domestic production, as well as secure America's steel and Aluminum industries.
This isn't about just trade. It's to ensure that America will never have to depend on foreign countries for critical industries such as steel and aluminum."
In 2018, Trump began imposing tariffs on steel and aluminum under an anti-Cold War national security law. Later, he granted exemptions to several countries, including Canada and Australia. He also struck duty-free deals with Brazil, South Korea, and Argentina, based on their pre-tariff volume.
Joe Biden, the former president of the United States, who succeeded Trump, negotiated a similar duty-free tariff for Britain, Japan, and EU.
"We applaud President Obama for instituting the 25% tariffs on imports of steel and eliminating exclusions, carving outs, and quotas based on outdated data," said Philip Bell of the Steel Manufacturers Association.
Bell explained that these figures were based upon import levels from 2015-2017, which no longer reflect the current dynamics of the market.
Shares of U.S. and European steel and aluminum producers soared before the announcement, while those of European and Asian steelmakers declined. According to data from government and industry, the top three sources of U.S. imports of steel are Canada, Brazil, and Mexico. South Korea, and Vietnam follow.
In the first eleven months of 2024, Canada's extensive hydropower resources, which aid its metal production and manufacturing, accounted 79% of U.S. imports of primary aluminum.
U.S. Trade Partners warned that the new barriers will hurt U.S. Automakers, Shipbuilders and Other Industries.
Don Farrell, Australian Trade Minister, said that Australian steel and aluminium create thousands of American jobs and are vital to our common defense interests.
The U.S. Distillers warned the EU that steel tariffs may prompt them to increase duties on American whiskey.
Chris Swonger is the CEO of the Distilled Spirits Council of the United States. He said that a 50% tariff on America’s native spirit would have catastrophic consequences for the 3,000 distilleries in the United States.
The European Commission stated that it did not see any justification for these tariffs. President Ursula von der Leyen will meet U.S. vice president JD Vance on Tuesday in Paris during an AI Summit.
The South Korean Industry Ministry invited steelmakers to South Korea to discuss ways to minimize tariffs' impact.
RECIPROCAL TARIFFS
Trump has also promised to provide detailed information about his reciprocal tariff plan on Tuesday or on Wednesday. He has complained for years about the EU's tariff of 10% on auto imports. This is much higher than the 2.5% U.S. rate. The U.S., however, applies a tariff of 25% on pickup trucks. This is a major source of profit to Detroit automakers such as General Motors.
According to World Trade Organization statistics, the average U.S. tariff rate, weighted by trade, is 2.2%. This compares to 12.0% for India, 6.7% in Brazil, 5.1% in Vietnam, and 2.7% within the EU.
Indian officials claim that Indian Prime Minister Narendra Modi has been preparing tariff reductions ahead of his meeting with Trump on Wednesday. These could increase American exports. Trump called India "a very big abuser" of trade in the past, and his top economist Kevin Hassett referred to India as having "enormously" high tariffs during a CNBC interview.
Trump had threatened to impose 25% tariffs on all imports coming from America's largest trading partners Canada and Mexico. He said they needed to do more to stop the flow of migrants and drugs across the U.S. Border. Trump suspended the tariffs on March 1 after making some concessions in border security.
Data from the United States showed that last year, demand for aluminum far exceeded production in the country. This left it largely dependent on imports.
(source: Reuters)