“However, they must also ensure that these duty-free products do not leave the area and are not sold in the domestic market. It is always an unanswered question that must be asked of regulators. Finally, Tesla also hopes to manufacture vehicles in the new Gigafactory for countries outside China, Musk said, which could prevent some trade problems during President Donald Trump`s ongoing trade war. Since the trade war intensified in July 2018, when the United States announced a proposed tariff on $200 billion worth of imported Chinese goods, the Dow Jones Industrial Average has increased by about 5%. On the other hand, the Russell 3000 Auto-Auto Parts Index is down about 21%. The trade war between the United States and China continues, and the latest wave is that China is imposing $75 billion in new tariffs on U.S. products, including cars. As reported on Tuesday by the Chinese news site Xinhuanet, the Chinese government will drastically increase the size of its Experimental Free Trade Area (FTZ) in Shanghai to cover Tesla`s new “Gigafactory” in Lingang, an industrial area on the outskirts of Shanghai. The much bigger trade problem for U.S. automakers is the renegotiation of Nafta or the North American free trade agreement.
Since the early 1990s, when Nafta was introduced, the global automotive industry has treated North America as geographical monoliths. Indeed, until recent trade disputes, it was difficult to obtain country-by-country data for U.S. industry. Even the U.S. auto industry wasn`t thinking about North America. Huang Yejing, a research professor at the Institute of Global Economics at the Shanghai Academy of Social Sciences, quoted Huang Yejing, a research professor at the Shanghai Academy of Social Sciences. Everything Tesla imports in Giga 3 will be free on the Chinese side. But Huang also said that my question then seemed to stumble upon an answer, thanks to media coverage from another Teslarati writer about the expansion of China`s Shanghai Free Trade Area (FTZ) in Lingang, the area where Tesla`s latest rehabilitation is located.