WTO: China can levy tariffs of 3,6 billion dollars – SCMP

According to South China Morning Post, China can levy tariffs of 3,6 billion dollars in US trade. The WTO made its decision on Friday related to an old dispute from 2013.

This means that the ongoing trade discussions between the US and China, will get new tariffs elements.

The leaders of the two countries were about to meet in Apec meeting in Chile in November, but the cancellation of the meeting has made the process and new timetable unknown.

Business Finance

US stocks down – manufacturing data and trade tariffs

The US equity markets were clearly down in New York on Wednesday. The global growth concerns related to recent manufacturing and car sales data were the primary reasons. Dow Jones lost 1,86 % to 26078 points, the S&P 500 -index 1,79 % to 2887 points and the technology Nasdaq-index declined 1,56 % to 7785 points.

The US manufacturing data showed the global growth concern is having impact on the US economy. The US China trade talks have put pressures on the US manufacturing and for example the Ford Motor Company released its car sales figures, which were showing a decline in the third quarter.  Also the declining figures in German manufacturing is one part of the global concern.

Tesla (TSLA) also announced its third quarter deliveries, which were approximately 97,000 vehicles, according to the company release. According to Tesla the total deliveries were at record level, but according to Reuters the deliveries were down to Wall Street expectations and the share fell over 6 % after the bell. Last week the CEO Elon Musk was quoting that the company may reach a six-figures deliveries.

The US also announced a new trade tariffs to the EU related to the WTO Airbus decision. The new tariffs would include 7,5 billion dollars worth of goods. According to Bloomberg this would mean a new 10 % tariffs to aircraft goods and 25 % tariffs on farming and other industrial items. The new tariffs would be effective by October the 18th.

In the UK the FTSE -index also declined 3,23 % to 7122 points. The UK Prime Minister Boris Johnson delivered the new Brexit proposal to the EU. The country is aiming the EU leaders summit on the October 17th in order to seek the deal with the EU.

In Germany the DAX-index closed down 2,76  % to 11925 points and in France the CAC 40-index declined 3,12 % to 5422 points.

 

 

 

 

Business Finance

China to make a complaint over US tariffs to WTO – stocks down

The US stocks were declining on Tuesday trading, when the Chinese government said it has made a complaint to the World Trade Organisation over US tariffs.

The S&P 500 dropped 0.5% shortly, while the Dow Jones Industrial Average lost nearly 1 % to 26146 points and he Nasdaq Composite fell 0.38% 7932 points.

Also the European indexes closed down: Dax-index -0,14 % to 11936 points, FTSE 100 -index -0,26 % to 7262 points and CAC 40 -index -0,33 % to 5479 points.

The U.S. imposed new tariffs on Chinese goods including clothing, tools and electronics on last Sunday as Chinese tariffs also took effect.

“We expect there will be continued volatility in the market over the next 30 to 60 days, said one market analyst according to Wall Street Journal.

 

Business Finance Lifestyle

EU to start new trade talks with the US

The European Union countries have agreed to start new trade talks with the US. The EU Commission have now the formal authorisation to proceed with the matter.

But this situation is still facing resistance from France and Belgium. The France President Emmannuel Macron has said that he objects the talks because of the US withdrawl from the Paris Agreement in 2017.

And the issue is also about agricultural goods. The US wants them be part of the trade deal and the EU is not interested including them. It is also believed that the EU elections in May will increase the rethorik of protectionism in the agricultural products in France and in Belgium.

According to New York Times, the US Congress has made clear that it will not ratify any trade agreement with the EU that does not include agriculture. The Trump’s administration have been insisted to include them in the trade deal.

Last week the US Goverment announced that they are planning to propose new tariffs regarding civilian aircraft and agrigoods like French cheese and Italian olive oils. The reason for this was the WTO research, which found that the EU subsidies to Airbus (AIR) have had negative impact on the US trade. On the other hand, the WTO has shown that this is vice versa with the US subsidies in Boeing.

On the agenda there is also the tariffs proposed to the EU car import to the US.

Germany, the biggest automanufacturing country in the EU, increased its car production to 451 400 units in March 2019. The GDP from manufacturing in general was 171 billion euros during the fourth quarter of 2018.

Business Finance