- In today’s executive director per day: Diane Brady on Trump’s new taxes for international trade.
- Great story: The tariffs were worse than expected.
- Markets: Global Seluff in progress.
- Notes of analysts From Wedbush, EyAnd funding for financing – you hit – tariffs, jobs and Tesla.
- Plus: All news and chat with a water part Wealth.
Good morning. A friend or enemy? It was hard yesterday, because Donald Trump revealed great goals against all the trade partners of the United States. Title numbers to know: 10% basic tariff on all imports, with specific and higher tariffs per country, including 34% on China (above existing 20% tariffs), 20% per EU and as much as 46% and 49% on Vietnam and Cambodia. “They do it to us, we do it,” the president said during the discovery of Tariff Rose Garden Tariff. Something food to think about how it starts to relegate:
That’s worse than expected. How was the White House To take off the detail From the plan deep on Tuesday, the markets showed some signs of life as investors hoped for last-minute indulgence. But Futures Futures dived after the announcement on Wednesday. Just about half of what Americans buy are made in America, according to Data from the trade departmentand industries like auto sector that have complex global supply chains.
This is undermined by China+1 manufacturer strategy. Some Asian countries are particularly affected 40% or more tariffsdealing with the impact of American manufacturers to diversify production outside China to cheap neighbors such as Vietnam, Bangladesh and Cambodia, especially in areas such as textiles and electronics. Gap Inch. – home to the gap, AthleteBanana Republic and Old Navy – have reduced the exposure to China in recent years, but nevertheless Sources a vast majority of your clothes From Asian countries, new tariffs hit. Change takes time.
A global return could be harmed by all companies. Trump described yesterday’s tariffs as “Kind” American trade partners. Of anger foreign leader It is clear to foreign consumers who have boycotted our products and travel that our partners disagree. Hostility is bad for business, with economists from Ey, Goldman Sachs and Moodis The prediction of lower growth from self-tanned tariff wounds. This week I spoke with Niccol de Masi, the Quantum Computing Company IonQ director. “We are building all our things in America,” he said. “We are not negatively influenced by tariffs, but we are realistic that our ability to success in Asia and Europe comes with more presence there.” It is harder to do if a trade war ereates nationalist instincts.
This could devastate the hard -affected economy and industry. Jacques Vandermeiren, Executive Director of the Antwerp-Breges Port, Other Biggest Ports, I told my colleague Peter Vanham Earlier this fall, “If Trump puts a tariff up to 10 percent, we’ll get rid of.” Significantly higher than that, Vandermeiren warned, a disaster could be written for the European steel, aluminum, car and other industry oriented on export. Switzerland Industry of combat watches, which exports more of its products to the US than any other countryNow they will face a large 31% tariff. Will those who crave Rolex or Pak Philippe settle replacement? I doubt it.
There will be a lot of negotiations in the coming days, and business leaders from experience know that what appears on paper at a press conference may not be translated into an action on the border – or can be revealed quickly. And American consumers, whose consumption makes more than two-thirds of GDP, do not look so excited by all these tariffs that are told they will eventually help them. Consumer feeling Followed by the University of Michigan He trained this year at the lowest level of 2022.
Adam Smith once wrote that nations rarely progress, asking their neighbors. That was 1776, when mercantiism was dying and now they were born. Released from the British rule, the young nation used tariffs to develop domestic industries that later competed on the world stage. Since we are globally connected now by returning to the tariff levels in the last 1900s, as cars were just coming to the scene, the influence could be very different.
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Contact the CEO daily via Diane Brady on diane.brady@fortune.com
This story is originally shown on Fortune.com
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