China’s tariff cuts are silver lining of trade war 27 Sep 2018 Import taxes on many industrial goods are coming down, expanding earlier reductions and lowering the overall rate to 7.5 pct from 9.8 pct. That may blunt charges of protectionism abroad and help companies at home. Expected savings also should result in a stronger Chinese economy.
Congress is too close to crying wolf on trade 25 Sep 2018 America and Canada aren’t near a NAFTA deal and time is short. U.S. lawmakers have said they won’t accept the U.S.-Mexico only pact favored by Trump, but some have criticized Ottawa. If they back down, there’s little hope for any meaningful brake on steel tariffs and the like.
BMW justifies carmakers’ slow lane valuation 25 Sep 2018 Investors fled the sector this year on trade-war fears and new emission rules. At around six times earnings, Europe’s automakers were starting to look cheap. The German group’s profit warning, however, is a reminder of carmakers’ limitless capacity to generate bad news.
Rodrigo Duterte’s toughest foe may be inflation 21 Sep 2018 The Filipino strongman finds himself under pressure from quickly rising prices for fuel, rice and more. The weaker peso and the president’s ill-timed tax overhaul are factors. The central bank, late to recognise the scale of the issue, could help with an aggressive rate hike.
Trump tariffs fallout hints at protracted battle 21 Sep 2018 As U.S. companies brace for taxes on another $200 bln of Chinese exports, many say they’re considering leaving the People’s Republic. That has Beijing wondering if such an exodus is as much a policy aim as IP theft. It’s one more reason to think the trade war is here to stay.
The Exchange: A chat with Gary Cohn 18 Sep 2018 President Trump’s first National Economic Council director and former Goldman Sachs No. 2 discusses the financial crisis and its aftermath with Gina Chon. He also gives his take on tax cuts and trade, and explains why JPMorgan boss Jamie Dimon would make a “phenomenal” president.
Investors can ignore glimmers of China trade hope 18 Sep 2018 The latest round of U.S. tariffs on $200 bln of its goods, and China’s response, could have been worse. That buoyed markets. But investors are missing the bigger picture. Talks and hearings haven’t stopped things getting to this point, and they are likely to escalate further.
Trump makes and breaks case for new global order 18 Sep 2018 The U.S. president’s propensity to impose tariffs and ditch multilateral accords may prod developed and emerging countries to plan sturdier safety nets for the world economy and financial system at the G20 and elsewhere. Trump is also the reason they will struggle to succeed.
Guest view: Trump trade war threatens Korean peace 18 Sep 2018 Invoking national security to impose tariffs on car exporters such as Hyundai and Kia is myopic, argue the Korea Society’s president and a former U.S. ambassador to Seoul. As fresh talks with Pyongyang start, it’s worth remembering that politics cannot be divorced from economics.
Trump’s China tariff weapons are getting blunter 17 Sep 2018 The U.S. administration is set to move forward with duties on another $200 bln of imports. Initially, it deftly avoided consumer goods. The expanded list, though, is more policy sledgehammer than scalpel. The pain will be felt by American households and Chinese exporters alike.
Apple gets schooled in lose-lose trade strategy 10 Sep 2018 President Trump suggested that the iPhone maker build products in America if it wants to avoid tariffs on Chinese goods. That sends the message that hurting U.S. companies is an acceptable price to pay for insisting trade partners bend to U.S. demands. Escalation is inevitable.
Volvo’s IPO problems go beyond brewing trade war 10 Sep 2018 The carmaker’s Chinese owner has paused a float worth up to $30 bln. Even without America’s tariff antics, that price tag would have been far too high. Investors are unconvinced old-school auto groups will get a return for their spending on electric and autonomous cars.
Foreign carmakers are caught in a China drive-by 7 Sep 2018 Beijing wants to slash excess auto production at a time when Nissan, Toyota and others hope to expand. Draft rules could cut as much as a third of capacity in the world’s largest car market. Official feuding over the issue too could prove a speed bump, even for global giants.
Trump inadvertently makes free trade cool again 4 Sep 2018 Blaming cheap imports for destroying U.S. jobs helped him win the presidency. Now polls show Americans disapprove of his tariff wars as they could hurt the economy. Even the China-wary Rust Belt worries about import duties raising prices. Trump’s trade blowback could be costly.
Pacific islands a debt domino on China’s Silk Road 4 Sep 2018 Tonga’s prime minister warned of asset seizures as his country struggles to repay $115 mln of Chinese loans. That sounds extreme, but Tonga and its neighbours will try to renegotiate terms. Beijing’s response will show how conciliatory it is willing to be with weaker borrowers.
Delaying NAFTA deal is actually a win-win-win 31 Aug 2018 Canada and the United States will keep talking despite missing a deadline to resolve trade talks. Negotiators will need to move quickly to avoid the risk of fresh demands from the next Mexican government. But a NAFTA that all sides can sell is more important.
NAFTA survival rests on Ottawa showmanship 29 Aug 2018 Foreign Minister Chrystia Freeland is talking up how Mexico’s U.S. “concessions” help Canada. Now she needs a deal, not least on the country’s punitive dairy tariffs, that keeps both the U.S. president and her anti-Trump fellow citizens happy. That’ll require some smooth talking.
Opioids and trade war create toxic cocktail 28 Aug 2018 An inflow of lethal fentanyl from China helped America record nearly 72,000 fatal drug overdoses last year. A breakdown of trust over tariffs may make it harder to cooperate over this dangerous import, and fuel unhelpful arguments about whether supply or demand is to blame.
UK-Africa trade is tiny plaster for Brexit wounds 28 Aug 2018 Prime Minister Theresa May hopes deeper ties with the continent will help cushion the blow of leaving the EU. But UK trade with sub-Saharan Africa is less than 3 pct of what it exchanges with Europe. With Nigeria and South Africa in the doldrums, prospects for growth look slim.
U.S.-Mexico deal is only start of tough NAFTA road 27 Aug 2018 The neighbors agreed to boost regional auto content for tariff-free trade. Now Ottawa will rejoin the talks. Hurdles like dispute panels remain, and Trump’s fresh outburst at Canada will make it hard to close the pact this week. Approval by Congress also isn’t a slam dunk.