(Washington, DC-AP) — President Trump insists that China is paying the tariffs that he has imposed in the trade war with Beijing, but Goldman Sachs disagrees. The U.S. bank claims the costs of U.S. tariffs are falling entirely on American businesses and households.
Goldman warns that the impacts on U.S. consumer prices will get worse if the dispute is not resolved. Stocks have tumbled in recent days amid fears that the trade war is growing, with no end in sight.
The U.S. and China have the world’s two biggest economies.
(Washington, DC) – President Trump continues to weigh in on Harley-Davidson’s decision to move some production overseas to avoid paying higher tariffs. After tweeting yesterday that he was surprised “Harley-Davidson, of all companies, would be the first to wave the White Flag,” he called out the motorcycle maker again this morning.
The president tweeted “Early this year Harley-Davidson said they would move much of their plant operations in Kansas City to Thailand. That was long before Tariffs were announced. Hence, they were just using Tariffs/Trade War as an excuse.” He said the move shows how unbalanced and unfair trade is, but added “we will fix it.”
Harley officials say the 31-percent tariffs from the EU that were enacted on Friday will cost the company about 100-million dollars a year.
(SL) – Chinese investment in the U.S. has dropped 92 percent in the first five months of 2018. Around one-point-eight billion dollars had been invested as of May, the lowest amount in seven years. That’s according to a report out last week by foreign investment research firm Rhodium.
The drop comes as trade tensions have escalated between Beijing and Washington, with billions of dollars worth of tariffs slapped on each side. Donald Trump has complained repeatedly about what he says are unfair trade practices by China, and scrutiny on possible Chinese deals has increased under his administration.
(SW) – France and the European Union are keeping up their support for the Group of Seven commitments. An official with the French presidency told Reuters that anyone departing from those commitments would be showing their “incoherence and inconsistency.”
It was a reference to President Trump, who tweeted Saturday that the U.S. does not endorse the G7 statement signed by the six other countries attending the economic summit in Canada. It called for international cooperation in free trade and fighting protectionism. The French official, speaking under the condition of anonymity, said that international cooperation cannot depend on being angry and on sound bites.
(Washington, DC) — Donald Trump is proposing new trade tariffs on imported steel and aluminum. Speaking at the White House Thursday, Trump said he’ll sign a 25-percent tariff on imported steel and a ten-percent penalty on imported aluminum next week.
The President vowed to rebuild the U.S. steel and aluminum industries in a meeting with industry executives. News of higher import tariffs sent stocks plunging on Wall Street. Asian stock markets are down sharply. Japan’s Nikkei led the sell-off that started on Wall Street after Trump’s announcement on Thursday.Falling stock prices are showing up in Asia’s automotive and tech arenas, as well as steel and aluminum manufacturers. The tariffs reportedly will apply to all countries that export steel and aluminum to the U.S.
The New York Times reports, trading partners are hitting back. They promised to retaliate against quintessential American goods like Kentucky bourbon, bluejeans and Harley-Davidson motorcycles.
That is likely to turn into a wave of protest aimed at American products as other countries, including traditional allies, respond to Mr. Trump’s plan to clamp down on imports of metals from overseas.Canada, China and the European Union have already said they would respond with tariffs of their own that could lead to billions of dollars in American export losses. Those levies would harm the farmers and business interests that the Trump administration has promised to protect and would fuel a trade fight that could undermine the president’s goal of strengthening American industry.
Li Xinchuang, the vice chairman of the China Iron and Steel Association, called the president’s move “stupid,” saying, “Trump’s decision does no good to everyone except a few American steel enterprises.”
And John M. Weekes, Canada’s negotiator for the North American Free Trade Agreement in the early 1990s, said the president’s “notion is going down very badly in Canada.”
The Dow Jones Industrial Average lost 420 points to close at 24-609.