World attention remains fixed on the ongoing tit-for-tat trade war between the U.S. and China but this deflects from the sharpening contention for power between the two countries.
Trump has shown how he responds when his lies are exposed or his policies are failing: he doubles down.
The Trump administration has imposed tariffs on $34 billion in Chinese goods in a dispute over Beijing's high-tech industrial policies. In return, China has levied taxes on the same value of US products.
In a bracing statement, the International Monetary Fund warned that a trade war could shave 0.5% off global growth by 2020, amounting to some $430bn in lost economic activity.
The impact has fallen mainly on USA farmers and Republican party lawmakers. The best relief for the president's trade war would be ending the trade war. But he is concerned about the prospect of retaliation should those tariffs take effect.
German automaker BMW said it would increase suggested retail prices of the relatively high-margin X5 and X6 SUV models by 4 percent to 7 percent.
The vast majority of Republicans approve of President Trump's decision to give $12 billion in emergency aid to USA farmers, according to a poll released Sunday, the Washington Examiner writes.More than three quarters of Republicans, at 78 percent, are in favor of farmers receiving the economic boost, while only 22 percent disapprove of the measure, per the CBS News 2018 Battleground Tracker survey.
China-based auto dealers said Mercedes maker Daimler moderately raised prices in the country of its GLE midsize SUV which is produced in Alabama. However, our concerns still lie in a lengthy trade war that will cause long-term, irreparable harm to US agriculture. The company blamed tariffs for a 30 percent drop in second-quarter profit. "What we've agreed to is not to impose automotive tariffs while the negotiations are under way". The company is working to reduce the impact on margins by optimizing its supply chains. As demand for Chinese goods decreases, the renminbi's exchange rate will weaken - even without any government intervention.
French mining group Eramet warned that current favorable markets could be hurt by trade rows.
This practice is absolutely forbidden under World Trade Organization rules, but China gets away with it as the WTO apparently looks the other way. Prior to meeting Juncker, Trump tweeted that countries that weren't interested in "fair' trade deals would be hit with tariffs". Republican lawmakers, however, denounced that plan as welfare, and said the best solution to farmers' troubles is to simply eliminate the tariffs.
Overall trade restrictions could knock 0.25 percentage points from United States real GDP growth in 2019, while China could see growth reduced by as much as 0.5 percentage points according to the firm's baseline scenario.
Warning that "tariffs and bailouts" will lead to an economic meltdown, Sen.
Whatever deal the USA and European Union work out will need to be carefully examined.
The North American Meat Institute says, "The magnitude of potential losses from markets around the world where USA meat products will become far less competitive cost-wise will reach deep into rural America, and livestock producers will likely scale back herds as they face declining, export-linked demand for their livestock". In the third quarter.
Belgian steel wire maker Bekaert reported it sees underlying operating profit 20 percent below analysts' estimates in the first half, blaming wire rod costs partly driven up by tariffs.
The South African government estimates that steel exports to the USA represent 5% of national production, equating to some 7,500 jobs in the steel supply chain.
Austrian steelmaker Voestalpine said about a third of its USA sales would be impacted by import tariffs, adding it was talking to its customers about who would bear the cost.