Trump administration sues California over its emissions deal with Quebec

Traffic jam in Los Angeles at sunsetGetty The Trump administration is suing California and its all our fault (although were not saying sorry). The lawsuit against the state, filed on Wednesday, is over an agreement California made with Quebec in 2013, to link the two governments via a cap-and-trade emissions-trading program.The U.S. federal government has been fighting with California over its environmental strategies for some time, and in this latest skirmish, said its because the agreement violates the U.S. Constitution, which doesnt allow states to enter into treaties or pacts with foreign governments.The state of California has veered outside of its proper constitutional lane to enter into an international emissions agreement, said Jeffrey Bossert Clark, Assistant Attorney General of the U.S. Justice Departments Environment and Natural Resources Division.The power to enter into such agreements is reserved to the federal government, which must be able to speak with one voice in the area of U.S. foreign policy. Californias unlawful cap-and-trade agreement with Quebec undermines the Presidents ability to negotiate competitive agreements with other nations, as the President sees fit, Clark said. Under the cap-and-trade system, companies that emit large amounts of greenhouse gas must purchase credits in relation to their pollution output. In Quebec, automakers are required to sell a specified number of zero-emission vehicles. If they do not meet the minimum, they must purchase credits, either from the provincial government or from other automakers with extras to sell.Unique among the U.S. states, California has the ability to set its own emissions standards that can be more stringent than the federal standards. This dates back to the 1970s, when the state was granted a waiver so it could clean up its smog.Other states can choose to follow either the federal regulations, or those of California which doesnt seem to make Trump, who has traditionally favoured businesses over environmental concerns, very happy.Quebec premier Franois Legault said he would prefer that California remain in the agreement, but that the program will continue in the province even if the state leaves. He also said other states have shown interest in being part of the program.California governor Gavin Newsom said Trump going after a five-year-old program is about a political vendetta against California, and that this latest attack shows that the White House has its head in the sand when the comes to climate change, and serves no purpose other than continued political
Origin: Trump administration sues California over its emissions deal with Quebec

Trump administration upholds tariff on GM’s Chinese-made Buick

2020 Buick EnvisionBuick The largest U.S. automaker can’t get a pass on tariffs snagging one of its models. The Trump administration refused to grant General Motors an exclusion for its Chinese-built Buick Envision sport utility vehicle, keeping in place a 25-per-cent duty on the import. In a letter dated May 29, the Office of the U.S. Trade Representative denied the requested tariff relief by saying the vehicle was “strategically important or related” to Chinese industrial programs such as Made in China 2025, which it views as a national security risk. That initiative issued by Chinese Premier Li Keqianq is designed to help the country produce higher-value products. GM said in its July of 2018 petition that tariff relief was necessary to help the Buick brand compete against “foreign competitors” in the U.S. market, including Honda‘s Acura brand, Volkswagen‘s Audi and Daimler‘s Mercedes-Benz. Earlier last month, the U.S. Trade Representative denied a similar request from Volvo for tariff exclusion on its Chinese-made XC60 mid-sized SUV. The Swedish automaker, which is owned by China’s Zhejiang Geely, had asked for the exemption last October, saying it would assist in its transition to planned U.S. production of the vehicle. GM sold just over 30,000 Envision models last year. Despite those relatively low sales volumes, the SUV is key for the Buick lineup as a mid-sized entry that sits in between the compact Encore and three-row Enclave. The vehicle, which has a starting price of US$32,000, saw sales fall more than 25 per cent last year. Buick lowered the price by US$2,000 just before the tariff was put in place. GM has not passed on any of the costs of the tariff on the Buick model to consumers, said spokesman Stuart Fowle. He said the SUV’s drop in sales is related more to competition in the market than higher prices. The USTR also denied several other exclusion requests from GM for parts, including antenna assemblies, on grounds the company failed to show that the duty would cause “severe economic harm.” The company could still get an exclusion if a similar product from another company is granted relief, the trade representative’s office
Origin: Trump administration upholds tariff on GM’s Chinese-made Buick