ZeroFox Physical Security Intelligence Daily Brief - October 31, 2024

ZeroFox Physical Security Intelligence Daily Brief - October 31, 2024

ZeroFox physical security experts collect, curate, and analyze information derived from open and proprietary sources for comprehensive context of the circumstances surrounding global events. Here is today’s daily roundup of major developments.

Brief Highlights

• China Takes Countermeasures After EU’s EV Tariffs Enacted
• UK Budget Includes Billions in Tax Rises and Spending on Healthcare and Education
• Major Supply Chain Disruptions Expected from Southeastern Floods in Spain

China Takes Countermeasures After EU’s EV Tariffs Enacted

The European Union (EU) officially imposed 45.3 percent tariffs on Chinese electric vehicles (EVs). The enactment of new tariff hikes indicates that the negotiation between China and the EU to avoid the tariffs fell apart, prompting China to take retaliatory measures against the trade bloc. China filed a complaint under the World Trade Organization (WTO) dispute settlement mechanism and launched investigations into imports of EU brandy, dairy, and pork products. China’s Ministry of Commerce reportedly told Chinese automakers to pause their investment plans, such as factories in countries such as France and Italy that backed the tariff hikes, and to invest in those such as Germany and Hungary that voted against the tariffs.

UK Budget Includes Billions in Tax Rises and Spending on Healthcare and Education

The new UK government led by Prime Minister Keir Starmer released its 2025 budget. Included in the budget was GBP 40 billion (approx. USD 51 billion) worth of tax increases. The majority, GBP 25 billion (approx. USD 32 billion), will come from increases that companies pay to National Insurance. Employee contributions, however, will not go up. Capital gains taxes and some value-added taxes (VAT) will also go up. There will also be additional spending on healthcare, education, and transport, while the minimum wage will also be increased. Conservative opposition leaders criticized the budget for its tax increases on the business sector and the wealthy.

Major Supply Chain Disruptions Expected from Southeastern Floods in Spain

Over a year’s worth of rain fell in a few hours in the southeastern region of Valencia, killing over 90. The floods have also caused major transportation and supply chain disruptions with road cuts off. The region is key for Spain's agricultural industry, especially citrus production. The poor weather also impacted the rest of Spain. Expect shortages and price increases for goods produced in Spain, which is a leading supplier to the EU.