Shipment Tariffs: DHL suspends global deliveries

Early this week, the delivery giant, DHL, suspends all global shipment that are worth more than $800 to customers in the United States till further notice. 

This announcement was effected on Monday due to the introduction of Donald Trump’s new tariff regime leading to a huge increase in red tape at costumes.

However, shipments under $800 to either business or individuals were not affected by the changes. DHL also added that all business-to-business shipments would not be suspended but could face delays.

The company blamed their suspension of American customers’ delivery on the new US rules which require a formal entry processing on all shipments that is worth over $800 which was previously at $2,500 minimum worth until a change on April 5.

The Trump administration also planned on   May 2, to stop deliveries under $800 to the country, closing all loopholes allowing low-value packages to enter the US without incurring any duties specifically for deliveries sent from China and Hong Kong. The White House said the measures were aimed at addressing the synthetic opioid supply chain which it said play a significant role in the synthetic opioid crisis in the US.

The White House action planned will affect low-cost retail giant fast-fashion companies like Shein and Temu.

Harvard suing Trump administration over funding freeze

Harvard University on Monday filed a lawsuit against the Trump Administration over its illegal freezing of federal funds to the university. 

Alan M Garber, the University president announced the action on Monday in a letter to the university community which said the $2bn funding freeze would hamper critical disease research.

The move comes after the administration planned to cut another $1 billion in federal grants and contracts to the university, according to the Wall Street Journal, which is in addition to the $2.2 billion freeze that was announced last week.

President Donald Trump accused Havard and other universities of failing to protect Jewish students during last year’s campus protests against the war in Gaza and US support for Israel prompting the white house to send a list of demands that the White House said was designed to curb diversity initiatives and fight anti-semitism at the school. However, Havard university rejected the list and in response the administration froze $2.2 billion federal funding to the university.

In Monday’s letter, Mr Garber said: “The consequences of the government’s overreach will be severe and long-lasting.”

Studies on pediatric cancer, Alzheimer’s disease and Parkinson’s disease would be affected, he wrote.

The former US President, Barack Obama, a Harvard alum, said he also supported the university, calling the cash freeze unlawful.

Elon Musk Tesla profit plunge

Elon Musk on Tuesday has pledged to reduce time allocated to the Department of Government Efficiency (DOGE) and to focus more on his Tesla electric car.

Musk said this in an announcement to all Tesla investors on Tuesday that he would reduce the time allocated at DOGE to a day or two a week starting from next month to focus more on Tesla after the company reported a revenue fall of 9%, with auto revenue falling 20%. Adjusted income tumbled 39%. Its net income, the strictest definition of its profitability also plunged 71% compared to a year earlier.

“Starting next month, May, my time allocation to DOGE will drop significantly,” Musk said during a Tesla earnings call.

Musk blamed the Tesla profit plunge on people who attacked him and the Doge team. Trump’s tariffs on China also weighed heavily on Tesla as the parts that were used for building the cars were imported from china. 

Though Musk did not specifically blame Trump for the uncertainty about trade policy, he did try to put some distance between himself and the administration on that issue.

“The tariff decision is entirely up to the President of the United States,” he said. “I will weigh in with my advice. I’ve been on the record many times saying lower tariffs are a good idea for prosperity. I’ll continue to advocate for lower tariffs rather than higher tariffs. That’s all I can do.”

Musk added that he thought Tesla was the car company least affected by tariffs because of its localised supply chains in North America, Europe and China, but he said that tariffs were still tough on a company where margins are low.

EU fines US tech giants with $700 million fines

The European Union (EU) on Wednesday fined American tech giants, Apple and Meta a combined €700 million ($797 million) in the first enforcement of its landmark digital competition law.

During a year-long investigation, the European Commission found that Meta had not given users the ability to use versions of its platforms that process less of their personal data without paying a fee for a period last year.

In November 2023, META also adopted a consent or pay advertising model, which forced its European users of Facebook and Instagram to either consent to personal data combination for personalized advertising or pay for ad-free versions of the platforms.

The commission also found that Apple had broken the so-called steering rule in the DMA. Under the rule, app developers distributing their apps via Apple’s App Store should be able to inform customers, free of charge, of alternative offers outside the store, steer them to those and allow them to make purchases. But due to a number of restrictions imposed by the US tech giant, consumers cannot fully benefit from alternative and cheaper offers, the European Commission said in a statement.

Meta’s chief global affairs officer, criticized the EU’s decision, accusing it of attempting to handicap successful American businesses.

“This isn’t just about a fine; the Commission forcing us to change our business model effectively imposes a multibillion-dollar tariff on Meta while requiring us to offer an inferior service,” Kaplan added.

A representative for Apple also criticised the decision saying the fine is yet another example of the European Commission unfairly targeting the company and forcing it to give away its technology for free. 

MORE HIGHLIGHT

• Chinese electric vehicle giant, BYD unveils luxury electric cars after winning long-standing frontrunner Tesla in sales of electrified vehicles.
• Twelve states on Wednesday sue the Trump administration for illegally imposing tax hikes on Americans through tariffs.