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Tariffs

US and EU Reach Deal on Boeing-Airbus Subsidies, But Friction Remains

AP News | Equities.com |

The deal the United States and the European Union reached Tuesday to end their long-running rift over subsidies to Boeing and Airbus will suspend billions in punitive tariffs. It will ease trans-Atlantic tensions. And it will let the two sides focus on a common economic threat: China.

But the breakthrough still leaves some trade friction between the U.S. and the EU unresolved. Most prominently, President Biden kept in place import taxes that President Donald Trump imposed on European steel and aluminum, a move that infuriated some of America’s closet allies three years ago.


Study Shows China Trade War Has Caused Peak Loss of 245,000 US Jobs

Reuters | Equities.com |

U.S. President Donald Trump’s trade war with China has caused a peak loss of 245,000 U.S. jobs, but a gradual scaling back of tariffs on both sides would boost growth and lead to an additional 145,000 jobs by 2025, a study commissioned by the U.S.-China Business Council (USCBC) shows.

The group, which represents major American companies doing business in China, said the study by Oxford Economics also includes an “escalation scenario” which estimates a significant decoupling of the world’s two largest economies could shrink U.S. GDP by $1.6 trillion over the next five years. This could result in 732,000 fewer U.S. jobs in 2022 and 320,000 fewer jobs by 2025, it said.


US Trade Deficit Jumped to $68.1 Billion in November, Highest Level in 14 Years

AP News | Equities.com |

The U.S. trade deficit jumped to $68.1 billion in November, the highest monthly deficit in 14 years, as a surge in imports overwhelmed a smaller increase in exports.

The November gap between what America buys from abroad compared to what it sells abroad rose by 8% from the October deficit of $63.1 billion, the Commerce Department said Thursday.

The increase reflected a 2.9% increase in imports of goods and services to $252.3 billion on a se...


US Increases Tariffs on Aircraft Parts and Wine From France and Germany

Reuters | Equities.com |

U.S. trade officials said on Wednesday they were increasing tariffs on certain European Union products, including aircraft-related parts and wines from France and Germany, amid an ongoing civil aircraft dispute between Washington and Brussels.

In a statement, the Office of the U.S. Trade Representative said it was adding tariffs on aircraft manufacturing parts and certain non-sparkling wines as well as cognacs and other brandies from France and Germany.


China's Trade Surplus Soars to Record $75.4 Billion in November, Driven by American Consumer Demand

AP News | Equities.com |

China’s politically sensitive trade surplus soared to a record $75.4 billion in November as exports surged 21.1% over a year earlier, propelled by American consumer demand.

Exports to the United States rose 46% despite lingering tariff hikes in a trade war with Washington, customs data showed Monday.

Total exports rose to $268 billion, accelerating from October’s 11.4% growth. Imports gained 5% to $192.6 billion, up from the previous month’s 4.7%.

Chinese exporters have benefited from the economy’s relatively early reopening after the Communist Party declared the coronavirus pandemic under control in March while foreign competitors still are hampered by anti-disease controls.


European Union 'Regrettably' Imposes Retaliatory Tariffs on Up to $4 Billion of US Goods

Reuters | Equities.com |

The European Union will impose tariffs on up to $4 billion of U.S. imports in retaliation for U.S. subsidies for Boeing, but said on Monday it was hopeful of an improvement in trade ties under U.S. President-elect Joe Biden.

The move, given the green light by the World Trade Organization last month, is the latest in a 16-year U.S.-EU dispute over civil aviation subsidies. U.S. tariffs on $7.5 billion of EU products after a parallel WTO case against Airbus AIR.PA have been in place for over a year.


World Trade Organization Rules That European Union Can Apply Tariffs on $4 Billion in US Goods

AP News | Equities.com |

World Trade Organization arbitrators said Tuesday that the European Union can sanction up to $4 billion in U.S. goods over Washington’s illegal support for plane maker Boeing.

The ruling, which could inflame Trump administration criticism of the Geneva-based trade body, amounts to one of the largest penalties handed down by the WTO. It comes a year after another ruling authorized billions in penalties against the European Union over support for Boein...


European Union Head of Trade Urges US To Withdraw Tariffs in Airbus-Boeing Dispute

Reuters | Equities.com |

The European Union’s new trade chief has told the U.S. to withdraw tariffs on more than $7 billion of EU products or face additional duties on exports to Europe, as he urged a settlement to the dispute over Airbus SE and Boeing Co, the Financial Times reported on Sunday.

Repairing the transatlantic relationship would be EU's top priority, and the U.S. should withdraw its Airbus-related tariffs as a confidence-building measure, the EU's new trade chief Valdis Dombrovski...


Swing State Michigan Hurt by Trump Tariffs on Steel and Broken Promises on Infrastructure

Reuters | Equities.com |

President Donald Trump promised a new dawn for the struggling U.S. steel industry in 2016, and the lure of new jobs in Midwestern states including Michigan helped him eke out a surprise election win.

Four years later, Great Lakes Works - once among the state’s largest steel plants - has shut down steelmaking operations and put 1,250 workers out of a job. A year before the June layoffs, plant owner United States Steel Corp called off a plan to invest $600 million in upgrades amid deteriorating market conditions.


British Trade Secretary Pledges To Fight 'Unacceptable and Unfair' US Tariffs

Reuters | Equities.com |

British trade minister pledges to fight 'unfair' U.S. tariffs - The Telegraph

(Reuters) - British Trade Secretary Liz Truss pledged to fight U.S tariffs on Scotch whisky, calling them “unacceptable and unfair” in an op-ed in the Telegraph on Sunday.

"I will fight to consign these unfair tariffs to the bin of history," she wrote, while accusing the European Union of failing to protect British and Scottish interests.

The U.S. government said last week it would ...


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