Auto Industry News: New Tariffs Heat Up Trade War, New Alliances Heat Up Emissions Disputes, Hyundai New EV Heats Up the 2019 Frankfurt Motor Show, and New 2021 F1 Car Heats Up the Circuit

It’s been a crazy, busy few days in the world of automotive news. The Trump administration faces a two-front conflict: a trade war with China, recently inflamed as the superpower implements new tariffs that will impact American automakers. And the other, an emissions war with California, as its battle with the EPA also flares up. On the EV front, Hyundai teases the reveal of a new concept before the 2019 Frankfurt Motor Show. And sneak peeks of the new 2021 F1 car usher in a new generation for the sport. Along with an exciting week in NASCAR actions, this makes for one packed auto news.

Let’s get right down to it.

Trade War Heats Up with Even More Tariffs

Here we go again, as the Trump administration and China enter yet another round of tariffs in this tit-for-tat trade war. Here’s your timeline of what went down this weekend:

The newest roll-out, this time implemented by China, will levy 5-10% tariffs on $75 billion in U.S. imports. It will also include an extra 25% penalty on cars and auto parts, specifically. Some are set to take effect starting September 1, while others have until December to kick in. These new tariffs are in retaliation to the U.S. government’s announcement on August 1, that it would be taxing 10% of the $300 billion Chinese goods previously exempt from duties.

This is troubling news for both the larger auto industry, but more specifically U.S. manufacturers. It was also troubling for the stock market, with the DOW and U.S. auto industry stocks tumbling on Friday in the face of the trade war heating up again.

However, President Trump seems unconcerned by the potential impact of the tariffs.

He tweeted on Friday that the U.S. “don’t need China” and that America would be “better off without them.” He then ordered American companies to begin seeking alternative trading partners immediately. “This is a GREAT opportunity for the United States,” the Twitter stream continued.

President Trump also stated that, in retaliation for China’s retaliation, tariffs planned for September 1 will raise from 10% to 15% and those on October 1 will increase from 25% to 30%, resulting in a thinly-veiled threat from the Chinese Ministry of Commerce.

The President even said he’d consider declaring a state of emergency to deal with the on-going trade war. “In many ways this is an emergency,” Trump told fellow world leaders at the G-7 meeting he attended over the weekend, citing the unfair trading practices of China and a “total loss of almost a trillion dollars a year, for many years.”

Thinking of the real global economic repercussions of an all-out trade war between the two largest economies on the planet, it’s easy to see how things might look a bit dire.

Later in the weekend, however, Trump told reporters that China was looking to come back to the table and negotiate a compromise to end the on-going trade war. “China called last night our top trade people and said ‘let’s get back to the table’ so we will be getting back to the table and I think they want to do something. They have been hurt very badly but they understand this is the right thing to do and I have great respect for it. This is a very positive development for the world,” Trump said.

Although, this morning, that statement was refuted by Hu Xijin, a Chinese journalist and editor of the Global Times, a state-controlled newspaper in the People’s Republic of China.

Emissions War Gains Momentum At Home

As if a trade war with China isn’t enough to juggle, President Trump also faces growing opposition regarding emissions on the domestic front as well.

At this point I hope our loyal readers are well-informed about the emissions battle between the state of California and the EPA, another well-covered story on this blog. Last month, we broke down the private deal California struck with four major automakers, securing the tighter emissions standards it was seeking. Now, the latest evolution looks like Mercedes and the state of Colorado are looking to hop on board.

According to the New York Times, the German automaker is set to join Ford, Volkswagen, Honda, and BMW in the partnership to commit to freezing emissions standards at Obama-era levels. The Times also indicated that a sixth major automaker is looking to get in on the deal, although no specifics were named.

These moves were never going to sit well with the Trump administration, which went as far as to call a meeting with automakers like GM, Toyota, and Fiat Chrysler at the White House, urging them to support the EPA’s efforts. More tweets ensued, this time stating that Henry Ford would be “disappointed” if he could see what his “modern-day descendants” were doing. The President also tweeted that the EPA’s proposed policies would have “very little impact on the environment,” as opposed to California’s ever-growing restrictions, which would “squeeze [automakers] to a point of business ruin.”

California Gov. Gavin Newsom fired back last Tuesday, saying the rollback is a “pathetic” decision by the administration, whose real intentions are to help Big Oil. “This was a big blow to the Trump administration, what we were able to accomplish, and I don’t think they saw it coming,” he told reporters. “This idea that they’re helping the automobile manufacturers, that’s just been blown up, a complete myth.”

While it’s possible that more states and automakers signing on to the deal might tip the scales in California’s favor, we don’t see the EPA accepting this loss laying down. This is likely just the latest turn in a heated emissions war bound for the higher courts.

Hyundai Teases New EV Ahead of 2019 Frankfurt Motor Show

In lighter news, Hyundai is playing coy ahead of the 2019 Frankfurt Motor Show, teasing a new fully-electric concept car that will shape the future of its EV line. Simply dubbed “45,” the new vehicle sports 1970s-era styling cues, as a nod to the South Korean automaker’s history. The new vehicle will showcase Hyundai’s forward-driven design direction, explore the evolution of the brand’s “sensuous sportiness” and usher in a new age of EV tech, according to a company press release.

In addition to the new EV concept, Hyundai will also give fans looks at its brand new i10 city car and the new i30 N Project C. Set to be fully revealed Sept. 10 at the 2019 Frankfurt Motor Show —one of the longest running car shows in the world— it’s a good indicator of things to come at this year’s event. Hyundai is far from the only automaker set to make electric waves for the show.

Enthusiasts will also get to lay their eyes on a thrilling new Lamborghini model supercar, teased on Instagram, while VW is set to reveal its new “bolder and more colorful” logo design for the EV generation. A fully electric city bus from Mercedes will be on display. And BMW is preparing to show the public its 4 Series concept, reworked for a new generation of drivers in mind. Also, both Honda and Mini’s full-production EVs will make their debuts as well.

The 2019 Frankfurt Motor Show is open to the public from September 12 to 22. So, check back in for more coverage and details as they emerge in the lead-up to the show.

Around the Circuit

F1

While F1 drivers might have a break until the Belgian Grand Prix on Labor Day weekend, that doesn’t mean the sport is out of the headlines. The new 2021 F1 car was revealed and we have exciting details to share.

Footage of a 2021 F1 concept car being tested in an Alfa Romeo Racing wind tunnel came out and showcased some of the key changes that will impact the future of Formula racing. A shorter nose and lower front wings, simpler rear diffuser and larger, more modern 18-inch wheels are just a few of the clear changes made to modernize F1 vehicles.

These types of changes mean that, across the board, teams will be more competitive in races—a factor that might break the stranglehold Mercedes has over the sport at the moment.

For a more comprehensive breakdown of the new 2021 F1 car, check out the video above.

NASCAR

Christopher Bell came out on top after a thrilling two-lap battle with AJ Allmendinger and Austin Cindric, nabbing his sixth XFinity series win of the season.

After a caution set up the mad 8-mile dash for the finish, Bell finished ahead of Austin Cindric in second and Tyler Reddick in third for his 14th career XFinity Series win and his first at Road America. After the race, Bell was thrilled by his and his team’s performance to take the checkered flag.

“Man, I’m honestly in shock,” Bell said. “I really butchered qualifying and tore the crap out of the left front. I felt like once we got in the race there, we’d be able to drive by those guys. Instead, they dropped the green flag and they were driving by me. That wasn’t much fun.”

Next up for XFinity Series drivers in the Sport Clips Haircuts VFW 200 on August 31 at Darlington Raceway.

Brett Moffitt dominated the day at Canadian Tire Motorsport Park, flaring up tempers and featuring drastic late-race passes in the Gander Outdoors Truck Series’ Chevrolet Silverado 250. Finishing ahead of second place finisher Todd Gilliland by 5.16 seconds and capturing his second playoff win in as many tries in 2019, Moffitt scored the largest margin of victory in the race’s seven-year history.

This statement win is another affirmation for Moffitt and extends his playoff streak to two. Going back to last season, the defending champ has now won four consecutive playoff races.

Next up for Gander Outdoors Series racers is the Strat 200 on September 13 at Las Vegas Motor Speedway.