World trade
China and Canada defend themselves against US tariffs
Since night, new US tariffs against China, Canada and Mexico have been applying. Without resistance, President Trump cannot enforce his punitive measures.
China and Canada are responding to the new US import tariffs that have been in force this night. Canada’s Prime Minister Justin Trudeau announced countermeasures before the US tariffs come into force. China announced in the early morning of German time that from March 10, additional tariffs will be charged, especially on agricultural products from the USA.
Shortly before-after midnight-according to the US media, the tariffs announced by US President Donald Trump for goods from China, Mexico and Canada came into force. This reported, among other things, “New York Times”, “Wall Street Journal” and the broadcaster CNN.
Specifically, punitive taxes of 25 percent apply to goods from Canada and Mexico that are imported into the USA. In addition, Trump announced that it would double the import duties ordered in February to goods from China to 20 percent.
Counter tariffs in Canada and China
In turn, Canada will introduce tariffs of 25 percent to US goods, Trudeau had previously announced. This initially only applies to goods with a total value of $ 30 billion, the statement said. After 21 days, this number will be increased to a total of $ 155 billion. “If the US tariffs are not set, we have active and ongoing discussions with provinces and territories to take several non-tariffs,” said Trudeau. This could presumably mean a restriction or even the stop of oil exports to the USA – a measure that would hit the United States hard.
China announced against tariffs to agricultural products and other measures against US companies. From March 10, China will collect additional tariffs of 15 percent on chicken meat, wheat, corn and cotton from the USA, as the Ministry of Commerce in Beijing announced. For other agricultural products, including soybeans, pork and beef, an additional custom of ten percent will apply. Also announced Beijing to put other US companies on a list of unreliable units, which threatens restrictions or complete bans for business activities in China. In addition, China complained about the United States by means of the dispute mechanism of the World Trade Organization (WTO).
A statement by Mexico’s President Claudia Sheinbaum was expected for Tuesday morning Mexican times (in the afternoon of German times).
Possible turnout of a trade war open
It is open whether Canada and Mexico can agree again with Trump to avert the punitive measures quickly. At the beginning of February, a North American trade war was initially averted at short notice. Trump, just a few hours before the threatened punitive tariffs came into force on goods from the neighboring countries Mexico and Canada, attended concessions, especially for border security. For this he pushed the trade restrictions on for at least 30 days.
Commercial conflict burdens stock exchanges
On the US exchanges, the indices were significantly burdened at the start of the week of customs and economic worries. “The stock exchanges have been politically driven as long,” commented analyst Thomas Altmann from QC Partners. “And with the dominance of political issues, volatility increases.”
The German leading index had reached a record high of more than 23,000 points on Monday – however, disillusionment returned after the customs news from overseas. In the early German trade, the DAX sagged again. The EuroStoxx 50 euro zone guide barometer also gave in on Tuesday.
Trump tariffs against the EU can hit ports
US tariffs against the EU are also in the room. And they could also affect the German ports, as the shipping expert Burkhard Lemper said to the German Press Agency. If EU products are actually occupied by tariffs, at least ports with significant US traffic, said Lemper, who heads the Institute for Sea Transport Management and Logistics in Bremen. Reduced growth rates or losses of the commercial volume are possible.
The extent can hardly be determined in advance, said Lemper. So far, it is unclear whether imports could be replaced with local production and the demand is due to the price increases. In shipping, trade restrictions between the United States and the rest of the world had an impact on global shipping companies.
The European Union “regretted” the United States’ decision to raise tariffs on goods from Mexico and Canada. A spokesman for the EU Commission also said that this step carries the risk of disturbing world trade. He creates unnecessary uncertainty.
Federal Minister of Economics Robert Habeck already announced countermeasures in the event of US tariffs. “The EU cannot be pushed around,” said the Greens politician. “When President Trump raises the announced tariffs to EU products, we will react closed and confidently.”
dpa
Source: Stern
