US-China trade war: Deal needs enforcement, says Chamber of Commerce

Pledges from Beijing to buy more American goods and fix some economic structural issues are meaningless victories for the U.S. if Donald Trump’s administration doesn’t also create ways to enforce a trade agreement with China, according to a top official from the U.S. Chamber of Commerce. That comes as Chinese negotiators ready for the next round of trade talks, set to begin Tuesday in Washington. “Without enforcement, this deal fails,” he told CNBC’s Eunice Yoon in Beijing. Enforcement mechanism


Pledges from Beijing to buy more American goods and fix some economic structural issues are meaningless victories for the U.S. if Donald Trump’s administration doesn’t also create ways to enforce a trade agreement with China, according to a top official from the U.S. Chamber of Commerce. That comes as Chinese negotiators ready for the next round of trade talks, set to begin Tuesday in Washington. “Without enforcement, this deal fails,” he told CNBC’s Eunice Yoon in Beijing. Enforcement mechanism
US-China trade war: Deal needs enforcement, says Chamber of Commerce Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: huileng tan, mark schiefelbein, pool
Keywords: news, cnbc, companies, trade, tariffs, enforcement, brilliant, war, commerce, beijing, needs, uschina, deal, china, according, need, chamber, trumps


US-China trade war: Deal needs enforcement, says Chamber of Commerce

Pledges from Beijing to buy more American goods and fix some economic structural issues are meaningless victories for the U.S. if Donald Trump’s administration doesn’t also create ways to enforce a trade agreement with China, according to a top official from the U.S. Chamber of Commerce.

That comes as Chinese negotiators ready for the next round of trade talks, set to begin Tuesday in Washington. So far, reports indicate, the two countries have found common ground on China decreasing its trade surplus with the U.S. through more purchases, but sticking points remain on issues such as intellectual property theft and the subsidies Beijing gives to its domestic firms.

Still, even if Trump’s team can realize its goals on those fronts, it will all come down to whether both countries actually live up to their commitments, according to Myron Brilliant, executive vice president and head of international affairs at the U.S. Chamber of Commerce.

“Without enforcement, this deal fails,” he told CNBC’s Eunice Yoon in Beijing. “Implementation and enforcement are going to be two key elements — so you need to have implementation, you need to have follow-through, but you need to have enforcement mechanisms that will ensure that both sides have trust that this deal is sustaining and verifiable.”

Enforcement mechanisms could include a “snapback” in tariffs if China doesn’t live up to the terms of the deal, he said. Another option, according to Brilliant, would be for the U.S. to “delay the reduction of tariffs being reduced from 10 percent down to zero” contingent on Beijing’s adherence to the agreement.

Such measures are unlikely to be well received by the Chinese negotiators, and multiple media reports indicate that remains one of the biggest sticking points in the ongoing discussion. Still, Brilliant emphasized that the business community is hoping some sort of agreement will come together.


Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: huileng tan, mark schiefelbein, pool
Keywords: news, cnbc, companies, trade, tariffs, enforcement, brilliant, war, commerce, beijing, needs, uschina, deal, china, according, need, chamber, trumps


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Markets are now only hoping US-China tariffs don’t get worse on March 1, JP Morgan says

Markets have lowered their bar for what kind of U.S.-China trade headlines they’d cheer, a J.P. Morgan Asset Management global market strategist, Hannah Anderson, said Friday. Markets have been on edge for months about trade tensions between the world’s two largest economies. An American delegation led by Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer is meeting in Beijing this week with Chinese Vice Premier Liu He and his team. “I believe we have seen expectat


Markets have lowered their bar for what kind of U.S.-China trade headlines they’d cheer, a J.P. Morgan Asset Management global market strategist, Hannah Anderson, said Friday. Markets have been on edge for months about trade tensions between the world’s two largest economies. An American delegation led by Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer is meeting in Beijing this week with Chinese Vice Premier Liu He and his team. “I believe we have seen expectat
Markets are now only hoping US-China tariffs don’t get worse on March 1, JP Morgan says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-15  Authors: evelyn cheng, greg baker, afp, getty images, -hannah anderson, jp morgan asset management, global market strategist
Keywords: news, cnbc, companies, worlds, hoping, worse, china, assuming, morgan, week, uschina, anderson, washington, trade, jp, dont, tariffs, markets, headlines, yield


Markets are now only hoping US-China tariffs don't get worse on March 1, JP Morgan says

Markets have lowered their bar for what kind of U.S.-China trade headlines they’d cheer, a J.P. Morgan Asset Management global market strategist, Hannah Anderson, said Friday.

Markets have been on edge for months about trade tensions between the world’s two largest economies. An American delegation led by Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer is meeting in Beijing this week with Chinese Vice Premier Liu He and his team. Discussions are expected to conclude Friday.

While markets may have at one point hoped for those negotiations to yield a resolution to the ongoing trade war, investors will now be satisfied if Washington simply opts to push back its deadline for additional tariff penalties on China, Anderson said.

“I believe we have seen expectations move from assuming China and the U.S. will resolve their differences during this 90-day negotiating period to assuming that talks would be a success if the U.S. doesn’t raise or apply more tariffs on March 1,” she said. “This shift reflects how easy it would be for policymakers to move the goalpost and declare victory — and how eager markets, fatigued after a year of trade headlines, are to move trade issues to the back burner.”


Company: cnbc, Activity: cnbc, Date: 2019-02-15  Authors: evelyn cheng, greg baker, afp, getty images, -hannah anderson, jp morgan asset management, global market strategist
Keywords: news, cnbc, companies, worlds, hoping, worse, china, assuming, morgan, week, uschina, anderson, washington, trade, jp, dont, tariffs, markets, headlines, yield


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

As Trump ponders auto tariffs, free-trade Republicans push back

Whether the Commerce Department took the president’s lead in recommending tariffs on all imported automobiles is unclear. “There’s not a whole lot of support for auto tariffs,” a senior administration official told CNBC. Pro-free-trade Republicans are building new tools to push back, in case the president implements new tariffs in the name of national security. Sen. Pat Toomey (R-PA) introduced a bill last month that would give Congress sixty days to approve any proposed tariffs under section 23


Whether the Commerce Department took the president’s lead in recommending tariffs on all imported automobiles is unclear. “There’s not a whole lot of support for auto tariffs,” a senior administration official told CNBC. Pro-free-trade Republicans are building new tools to push back, in case the president implements new tariffs in the name of national security. Sen. Pat Toomey (R-PA) introduced a bill last month that would give Congress sixty days to approve any proposed tariffs under section 23
As Trump ponders auto tariffs, free-trade Republicans push back Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-15  Authors: stephanie dhue, kayla tausche, patrik stollarz, afp, getty images
Keywords: news, cnbc, companies, tariffs, freetrade, trade, president, mexico, tariff, auto, push, proposal, republicans, trump, congress, steel, national, toomey, ponders


As Trump ponders auto tariffs, free-trade Republicans push back

Whether the Commerce Department took the president’s lead in recommending tariffs on all imported automobiles is unclear. But such a move would face resistance in the West Wing. “There’s not a whole lot of support for auto tariffs,” a senior administration official told CNBC. “But only one person’s opinion matters.”

In July 2018, President Trump called on Twitter for tariffs of 20 percent on foreign automobiles, and in November upped the suggestion to 25 percent following news of layoffs at General Motors.

Business groups are already warning of the economic impacts. A new study by the Center for Automotive Research found a 25 percent tariff on autos and parts would increase the price of a car by an average of $2,750 and as many as 366,900 U.S. jobs would be lost. Its analysis factors in exclusions for South Korea and assumes Canada and Mexico would also be exempt under the yet-to-be-passed U.S. Mexico Canada trade agreement.

Pro-free-trade Republicans are building new tools to push back, in case the president implements new tariffs in the name of national security.

Sen. Pat Toomey (R-PA) introduced a bill last month that would give Congress sixty days to approve any proposed tariffs under section 232. It would also apply retroactively to steel and aluminium tariffs, giving Congress 75 days to pass a resolution to approve those tariffs.

Sen. Toomey says he has heard from dozens of Pennsylvania companies who use steel and aluminium products who have been hurt by the increased cost of materials. “We have seen this administration use this tool in a way that was never intended,” said Toomey.

Sen. Robert Portman (R-OH) also has a proposal to address what he sees as the misuse of national security in trade fights. Under his proposal, the Pentagon would make the primary determination that a tariff is needed, not the Commerce Department. And Congress would have the right to disapprove of those measures.


Company: cnbc, Activity: cnbc, Date: 2019-02-15  Authors: stephanie dhue, kayla tausche, patrik stollarz, afp, getty images
Keywords: news, cnbc, companies, tariffs, freetrade, trade, president, mexico, tariff, auto, push, proposal, republicans, trump, congress, steel, national, toomey, ponders


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Trump is reportedly considering 60-day extension for China tariffs deadline

U.S. President Donald Trump is considering a 60-day extension of the Mar. 1 deadline for higher tariffs on Chinese imports, Bloomberg said on Thursday, citing unnamed sources. Trump was considering the extension so as to give two-way talks more time, Bloomberg added. A trade delegation led by U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin began high-level talks with Chinese counterparts, led by Vice Premier Liu He, on Thursday.


U.S. President Donald Trump is considering a 60-day extension of the Mar. 1 deadline for higher tariffs on Chinese imports, Bloomberg said on Thursday, citing unnamed sources. Trump was considering the extension so as to give two-way talks more time, Bloomberg added. A trade delegation led by U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin began high-level talks with Chinese counterparts, led by Vice Premier Liu He, on Thursday.
Trump is reportedly considering 60-day extension for China tariffs deadline Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-14  Authors: mandel ngan, afp, getty images
Keywords: news, cnbc, companies, bloomberg, extension, led, chinese, deadline, twoway, considering, unnamed, 60day, china, talks, vice, trump, trade, reportedly, tariffs


Trump is reportedly considering 60-day extension for China tariffs deadline

U.S. President Donald Trump is considering a 60-day extension of the Mar. 1 deadline for higher tariffs on Chinese imports, Bloomberg said on Thursday, citing unnamed sources.

Trump was considering the extension so as to give two-way talks more time, Bloomberg added.

A trade delegation led by U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin began high-level talks with Chinese counterparts, led by Vice Premier Liu He, on Thursday.


Company: cnbc, Activity: cnbc, Date: 2019-02-14  Authors: mandel ngan, afp, getty images
Keywords: news, cnbc, companies, bloomberg, extension, led, chinese, deadline, twoway, considering, unnamed, 60day, china, talks, vice, trump, trade, reportedly, tariffs


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Mnuchin hopes for ‘productive’ US-China trade meetings in Beijing

U.S. Treasury Secretary Steven Mnuchin said on Wednesday he hopes for “productive” trade meetings in China this week, as the two countries seek to hammer out an agreement amid a festering dispute that has seen both level tariffs at each other. Mnuchin, asked by reporters as he left his Beijing hotel what his hopes were for the visit, said “productive meetings”. He did not elaborate. Mnuchin, along with U.S. Trade Representative Robert Lighthizer, arrived in the Chinese capital on Tuesday. Trump’


U.S. Treasury Secretary Steven Mnuchin said on Wednesday he hopes for “productive” trade meetings in China this week, as the two countries seek to hammer out an agreement amid a festering dispute that has seen both level tariffs at each other. Mnuchin, asked by reporters as he left his Beijing hotel what his hopes were for the visit, said “productive meetings”. He did not elaborate. Mnuchin, along with U.S. Trade Representative Robert Lighthizer, arrived in the Chinese capital on Tuesday. Trump’
Mnuchin hopes for ‘productive’ US-China trade meetings in Beijing Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: evan vucci
Keywords: news, cnbc, companies, beijing, reporters, productive, president, tariffs, hopes, deal, deadline, mnuchin, meetings, trade, trump, uschina


Mnuchin hopes for 'productive' US-China trade meetings in Beijing

U.S. Treasury Secretary Steven Mnuchin said on Wednesday he hopes for “productive” trade meetings in China this week, as the two countries seek to hammer out an agreement amid a festering dispute that has seen both level tariffs at each other.

U.S. tariffs on $200 billion worth of imports from China are scheduled to rise to 25 percent from 10 percent if the two sides cannot reach a deal by a March 1 deadline, increasing pain and costs in sectors from consumer electronics to agriculture.

Mnuchin, asked by reporters as he left his Beijing hotel what his hopes were for the visit, said “productive meetings”. He did not elaborate.

Mnuchin, along with U.S. Trade Representative Robert Lighthizer, arrived in the Chinese capital on Tuesday.

U.S. President Donald Trump said on Tuesday that he could let the deadline for a trade agreement “slide for a little while,” but that he would prefer not to and expects to meet with Chinese President Xi Jinping to close the deal at some point.

Trump’s advisers have previously described March 1 as a “hard deadline,” but Trump told reporters for the first time that a delay was now possible.


Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: evan vucci
Keywords: news, cnbc, companies, beijing, reporters, productive, president, tariffs, hopes, deal, deadline, mnuchin, meetings, trade, trump, uschina


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Xi will reportedly meet with Mnuchin, Lighthizer as US and China try to strike a trade deal

Chinese President Xi Jinping will meet with Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer on Friday as both sides pursue a trade deal before an early March deadline, the South China Morning Post reported. The report, which cites sources close to the matter, said Xi “is scheduled to meet” with key members of the U.S. trade delegation that’s in Beijing, including Lighthizer and Mnuchin. China and the U.S. are trying to strike a deal before March 2. The trade tus


Chinese President Xi Jinping will meet with Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer on Friday as both sides pursue a trade deal before an early March deadline, the South China Morning Post reported. The report, which cites sources close to the matter, said Xi “is scheduled to meet” with key members of the U.S. trade delegation that’s in Beijing, including Lighthizer and Mnuchin. China and the U.S. are trying to strike a deal before March 2. The trade tus
Xi will reportedly meet with Mnuchin, Lighthizer as US and China try to strike a trade deal Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: fred imbert, mauricio valenzuela, picture alliance, getty images
Keywords: news, cnbc, companies, xi, trade, reportedly, morning, strike, lighthizer, treasury, deal, tariffs, meet, mnuchin, china, chinese, report, president, try


Xi will reportedly meet with Mnuchin, Lighthizer as US and China try to strike a trade deal

Chinese President Xi Jinping will meet with Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer on Friday as both sides pursue a trade deal before an early March deadline, the South China Morning Post reported.

The report, which cites sources close to the matter, said Xi “is scheduled to meet” with key members of the U.S. trade delegation that’s in Beijing, including Lighthizer and Mnuchin. Chinese Vice Premier Liu He is also expected to attend a banquet for the U.S. delegation this week, according to the Morning Post.

China and the U.S. are trying to strike a deal before March 2. Otherwise, additional U.S. tariffs on Chinese goods could take effect.

The report comes a day after President Donald Trump said he would consider pushing back the current March deadline if it means a deal between the two countries can be reached soon. He added, however, he “would prefer not to.”

The trade tussle between China and the U.S. has sent ripples through financial markets over the past year. Investors have fretted over the impact of tariffs on corporate profits.

Neither the Treasury Department nor the U.S. Trade Representative’s office responded to CNBC’s request for comment.

Click here to read the full story.

Subscribe to CNBC on YouTube.


Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: fred imbert, mauricio valenzuela, picture alliance, getty images
Keywords: news, cnbc, companies, xi, trade, reportedly, morning, strike, lighthizer, treasury, deal, tariffs, meet, mnuchin, china, chinese, report, president, try


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

BMW’s US boss slams tariffs as South Carolina factory approaches record production numbers

BMW’s North American boss has some tough words on tariffs, as automakers await a potentially pivotal decision on tariffs from the Trump administration. The tariffs for most light vehicles is now at 2.5 percent, and there is a long-standing 25 percent tariff on imported pickup trucks. BMW is a German company that both imports vehicles into the United States and exports them out, many from a factory in Spartanburg, South Carolina — BMW’s largest globally. BMW says it is the largest U.S. exporter o


BMW’s North American boss has some tough words on tariffs, as automakers await a potentially pivotal decision on tariffs from the Trump administration. The tariffs for most light vehicles is now at 2.5 percent, and there is a long-standing 25 percent tariff on imported pickup trucks. BMW is a German company that both imports vehicles into the United States and exports them out, many from a factory in Spartanburg, South Carolina — BMW’s largest globally. BMW says it is the largest U.S. exporter o
BMW’s US boss slams tariffs as South Carolina factory approaches record production numbers Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: robert ferris, meghan reeder
Keywords: news, cnbc, companies, slams, carolina, boss, south, 25, bmws, total, north, factory, vehicles, states, tariffs, largest, good, united, numbers, record, production


BMW's US boss slams tariffs as South Carolina factory approaches record production numbers

BMW’s North American boss has some tough words on tariffs, as automakers await a potentially pivotal decision on tariffs from the Trump administration.

The U.S. Commerce Department is expected to deliver a report within days that many industry experts say could deem auto imports into the United States a threat to national security and seek tariffs as high as 25 percent on all vehicles imported into the U.S. The tariffs for most light vehicles is now at 2.5 percent, and there is a long-standing 25 percent tariff on imported pickup trucks.

“If tariffs go up, it’s not good for the consumer it’s not good for our dealer network it is not good for the economy in total,” said Bernhard Kuhnt, CEO of BMW North America told CNBC on Wednesday.

“I’m not at politician, but we’ll deal with the consequences,” he added.

BMW is a German company that both imports vehicles into the United States and exports them out, many from a factory in Spartanburg, South Carolina — BMW’s largest globally. The automaker is expanding production at the plant and expects to hit a near-record level of production this year of more than 450,000 vehicles, most of them premium sport utility vehicles and crossovers which quickly growing in popularity with buyers both in the United States and around the world. BMW says it is the largest U.S. exporter of vehicles in terms of total sales. It exported $8.8 billion in vehicles in 2017, according to the Commerce Department.


Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: robert ferris, meghan reeder
Keywords: news, cnbc, companies, slams, carolina, boss, south, 25, bmws, total, north, factory, vehicles, states, tariffs, largest, good, united, numbers, record, production


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

The US reportedly wants to put automatic tariffs in place to keep China in line with any trade deal

The trade deal U.S. negotiators are seeking will have some teeth in case China goes back on its trade promises, as it has in the past, The New York Times reported. When China joined the World Trade Organization in 2001, it made a promise to allow foreigners to access its banking and telecommunication markets. President Donald Trump has softened his stance on the trade battle with China, saying he’s open to letting the deadline slide if the two sides can reach a trade deal soon. The March 2 deadl


The trade deal U.S. negotiators are seeking will have some teeth in case China goes back on its trade promises, as it has in the past, The New York Times reported. When China joined the World Trade Organization in 2001, it made a promise to allow foreigners to access its banking and telecommunication markets. President Donald Trump has softened his stance on the trade battle with China, saying he’s open to letting the deadline slide if the two sides can reach a trade deal soon. The March 2 deadl
The US reportedly wants to put automatic tariffs in place to keep China in line with any trade deal Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: yun li, kevin lemarque
Keywords: news, cnbc, companies, negotiators, trade, automatic, reportedly, times, wants, place, line, deal, deadline, tariffs, china, chinese, york, week


The US reportedly wants to put automatic tariffs in place to keep China in line with any trade deal

The trade deal U.S. negotiators are seeking will have some teeth in case China goes back on its trade promises, as it has in the past, The New York Times reported.

A top priority for Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer, who are set to hold talks this week with Vice Premier Liu He, is to put in place an automatic tariff mechanism that would raise duties on Chinese goods if its exports to the U.S. keep rising, The New York Times reported on Tuesday, citing three people with detailed knowledge of the negotiations.

China has a history of not living up to its trade obligations. When China joined the World Trade Organization in 2001, it made a promise to allow foreigners to access its banking and telecommunication markets. However, to this day, it hasn’t let any foreign company step in. American negotiators want to make sure China will face some punishment if it repeats this behavior.

The mechanism is not a new idea. It was put in place in 2001 when China joined the WTO, and President Barack Obama used it in 2009 to impose tariffs on Chinese tire imports when the U.S. market was disrupted. But China retaliated with duties on cars and poultry. The rule expired in 2013.

American negotiators now seek to make China enforce its earlier promises and make a pledge on issues like protecting intellectual property and limiting government subsidies to exporters, the report said.

President Donald Trump has softened his stance on the trade battle with China, saying he’s open to letting the deadline slide if the two sides can reach a trade deal soon. The March 2 deadline is crucial in the negotiations as U.S. tariffs on Chinese goods will increase if a deal is not struck before then.

The stock market has risen this week as the two countries came closer to a comprehensive trade agreement. Trump’s potentially postponing the March deadline also added to the optimism.

When asked how the trade meetings in Beijing went on Tuesday, Mnuchin said “so far, so good.”

—Click here to read the original report from The New York Times.


Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: yun li, kevin lemarque
Keywords: news, cnbc, companies, negotiators, trade, automatic, reportedly, times, wants, place, line, deal, deadline, tariffs, china, chinese, york, week


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

BMW’s US boss slams tariffs as South Carolina factory approaches record production numbers

BMW’s North American boss has some tough words on tariffs, as automakers await a potentially pivotal decision on tariffs from the Trump administration. The tariffs for most light vehicles is now at 2.5 percent, and there is a long-standing 25 percent tariff on imported pickup trucks. BMW is a German company that both imports vehicles into the United States and exports them out, many from a factory in Spartanburg, South Carolina — BMW’s largest globally. BMW says it is the largest U.S. exporter o


BMW’s North American boss has some tough words on tariffs, as automakers await a potentially pivotal decision on tariffs from the Trump administration. The tariffs for most light vehicles is now at 2.5 percent, and there is a long-standing 25 percent tariff on imported pickup trucks. BMW is a German company that both imports vehicles into the United States and exports them out, many from a factory in Spartanburg, South Carolina — BMW’s largest globally. BMW says it is the largest U.S. exporter o
BMW’s US boss slams tariffs as South Carolina factory approaches record production numbers Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: robert ferris, meghan reeder
Keywords: news, cnbc, companies, slams, carolina, boss, south, 25, bmws, total, north, factory, vehicles, states, tariffs, largest, good, united, numbers, record, production


BMW's US boss slams tariffs as South Carolina factory approaches record production numbers

BMW’s North American boss has some tough words on tariffs, as automakers await a potentially pivotal decision on tariffs from the Trump administration.

The U.S. Commerce Department is expected to deliver a report within days that many industry experts say could deem auto imports into the United States a threat to national security and seek tariffs as high as 25 percent on all vehicles imported into the U.S. The tariffs for most light vehicles is now at 2.5 percent, and there is a long-standing 25 percent tariff on imported pickup trucks.

“If tariffs go up, it’s not good for the consumer it’s not good for our dealer network it is not good for the economy in total,” said Bernhard Kuhnt, CEO of BMW North America told CNBC on Wednesday.

“I’m not at politician, but we’ll deal with the consequences,” he added.

BMW is a German company that both imports vehicles into the United States and exports them out, many from a factory in Spartanburg, South Carolina — BMW’s largest globally. The automaker is expanding production at the plant and expects to hit a near-record level of production this year of more than 450,000 vehicles, most of them premium sport utility vehicles and crossovers which quickly growing in popularity with buyers both in the United States and around the world. BMW says it is the largest U.S. exporter of vehicles in terms of total sales. It exported $8.8 billion in vehicles in 2017, according to the Commerce Department.


Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: robert ferris, meghan reeder
Keywords: news, cnbc, companies, slams, carolina, boss, south, 25, bmws, total, north, factory, vehicles, states, tariffs, largest, good, united, numbers, record, production


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Trump will get the weak dollar he likes from a China trade deal but not if he goes after Europe

A trade deal with China could stop the dollar’s rise, but it may not stay down if President Donald Trump then turns his focus to tariffs on European cars. Everybody is just kind of waiting for some solution, whether it’s Brexit, Trump China trade issues, some of the broader discussions around trade.” The euro, in the meantime, has been responding to weakness in European data, concerns about Brexit and trade uncertainty. Trade experts have said the U.S. will likely reach a China deal before turni


A trade deal with China could stop the dollar’s rise, but it may not stay down if President Donald Trump then turns his focus to tariffs on European cars. Everybody is just kind of waiting for some solution, whether it’s Brexit, Trump China trade issues, some of the broader discussions around trade.” The euro, in the meantime, has been responding to weakness in European data, concerns about Brexit and trade uncertainty. Trade experts have said the U.S. will likely reach a China deal before turni
Trump will get the weak dollar he likes from a China trade deal but not if he goes after Europe Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: patti domm, beawiharta
Keywords: news, cnbc, companies, china, goes, european, tariffs, euro, dollar, deal, trump, europe, data, global, likes, trade, weak


Trump will get the weak dollar he likes from a China trade deal but not if he goes after Europe

A trade deal with China could stop the dollar’s rise, but it may not stay down if President Donald Trump then turns his focus to tariffs on European cars.

U.S. trade negotiators are in China this week, and stocks and risk assets have risen on optimism that a deal will be reached and that Trump will not impose new sanctions on the March 1 deadline, if talks are continuing. At the same time, the dollar has moved higher, after a series of more positive U.S. data, including Thursday’s CPI.

“When you look around the world, that seems to be where the big economic risks are emanating from. The U.S. economy is slowing, but it’s still growing above trend,” said Marc Chandler, Bannockburn Global Forex chief market strategist. “The dollar has gone up every day, except for one, since the jobs data, and that’s right after the Fed sounded so dovish.”

The dollar index has risen 8.4 percent over the past year, boosted by concerns that trade wars and tariffs will harm the global economy. But recently, its rise has been fueled by the economic data, after January’s robust jobs report reduced worries about a recession. Trump has said in the past that a strong dollar hurts the U.S. while other countries manipulate their currencies, but other administration officials have backed a stronger dollar.

Strategists say the initial reaction in the dollar, should the U.S. and China come up with a trade deal, would be a decline, as emerging market currencies jump and the euro gains, at least in the short term.

But the Commerce Department is soon expected to release the results of its study of the global automobile industry, through the prism of national security concerns, and many analysts believe it will recommend tariffs on European vehicles. The report is expected Feb. 17, and the administration would then have 90 days to act on it.

Mark McCormick, TD Securities head currency strategist, said the euro could head to the top of its recent range, to about $1.16 after a China deal. “If there are European tariffs, we’re going to 1.10,” he said. Euro/dollar was at 1.1264 Wednesday.

“The markets are trying to price different outcomes, and they’re all overshooting because nobody has any conviction on what to do on any asset class,” said McCormick, of the effect of trade wars. “It weakens global growth. It impacts U.S. multinationals’ operations. It impacts local economies. It changes the trajectory of monetary policy. It becomes a very challenging environment to build scenarios around. Everybody is just kind of waiting for some solution, whether it’s Brexit, Trump China trade issues, some of the broader discussions around trade.”

The euro, in the meantime, has been responding to weakness in European data, concerns about Brexit and trade uncertainty. Trade experts have said the U.S. will likely reach a China deal before turning its sights on Europe and then Trump may well impose tariffs.

“Auto tariffs would hit the euro zone very sharply. That would be a negotiating tactic. I think the problem with this again is you might have a very adverse reaction in global financial markets since that kind of thing would undermine the sustainability of that kind of approach,” said Ben Randol, G-10 foreign exchange strategist at Bank of America Merrill Lynch. “It just feeds the narrative of a generalized global trade uncertainty.”

The euro would dive on new tariffs, and the dollar would strengthen.

“The U.S. dollar goes up on issues of trade uncertainty because the rest of the world is hurt more,” said Randol.


Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: patti domm, beawiharta
Keywords: news, cnbc, companies, china, goes, european, tariffs, euro, dollar, deal, trump, europe, data, global, likes, trade, weak


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post