Trump saw another “threat” to united states national security: the importation of cars and spare parts。
Last night (17), trump signed a decision in which he instructed the united states trade representative, letechize, to negotiate with the economies concerned about the car trade. He named the european union and japan, and if agreement could not be reached within 180 days, trump would consider next steps。
As a result of the sudden 180-day “breathing period”, the stock of several united states cars fell and went up last night. The european car giant also rebounded strongly, boosted by a collective rise in european shares。
The european union, however, “welcomes” the decision to postpone the imposition of customs duties by the united states, but expresses its dissatisfaction with the part of the trump statement “imports that threaten united states security”. This week, the european commission also indicated that a tariff countermeasure list had been prepared for the united states。
In its statement, trump wrote that the share of united states automobile manufacturers in the domestic automobile market had declined sharply, from 67 per cent in 1985 (producing and selling 10. 5 million cars in the united states) to 22 per cent (producing and selling 3. 7 million cars in the united states); over the same period, united states car imports almost doubled, from 4. 6 million to 8. 3 million. The latest data show that in 2017 the united states imported over $19. 1 billion worth of cars。
In his view, the strength of the united states defence forces depended on the competitiveness of the united states automobile industry and the development of research and development in that area. Today, however, “the automobile industry in the united states is being threatened by excessive imports from foreign automobiles, parts and components”. Trump also added names to the eu and japan, stating that these two large economies had further negative impacts on local united states automobile operators。
Trump then appointed the united states trade representative, laitshidze, to negotiate the car trade with the economies concerned. If agreement cannot be reached within 180 days, trump will decide whether and how to proceed further。
That evening, reuters reported that a spokesperson from the european commission commented on this: “despite some differences between the two sides, we welcome (delayed tariff escalation). The eu and the united states are committed to the june 2018 agreement between their users. The imposition of additional duties on the other side in one direction can be avoided.”
Moreover, on the same day, the european commission commissioner for trade, cecilia malmstrom, argued against the expression “a threat to the national security of a country posed by an eu car exporter”. She revealed that negotiations between the european union and the united states would take place in paris on 27 may, but would be limited to a “limited agreement, including the car trade”, rather than a “not allowed by wto”。
On 13 may, in an interview with bloomberg, malmström also revealed that if the united states decided to introduce additional sanctions on car imports, the eu's response would be “quite rapidly”. Bloomberg, for its part, expects that the eu counter-list will impose retaliatory tariffs on us commodities valued at up to $22. 5 billion。
It is worth mentioning that the eu has the capacity to “build back”。
Last june, the united states suddenly imposed a steel aluminium tariff on its allies, and the eu, which failed to “exempt”, imposed a 25 per cent tariff on us commodities totalling $3. 26 billion on 22 june. Trump then threatened to impose a 20 per cent tariff on european union cars and their parts, while the european union indicated that it would “add” to target the counter-manufactured guns at “300 billion dollars in commodities” to the end。
On the market side, the united states share felt good in the trump statement. Last night, the three shares were doubled in two hours of opening in a group low. Ford and fiat-chrysler, among the three giants of the united states traditional automobile manufacturing industry, have all been able to stop the build-up. The mood of the industry was boosted, and tesla, the electric motorist, was reduced from 3 per cent to 0. 6 per cent。
Ultimately, however, the united states stock was “nightly unsustainable” and the three major shares were all down, with ford and general purpose vehicles falling by 1. 06 per cent and 1. 02 per cent, respectively。
We've been informed that the ford drive has been boosted
The european autobots are also strongly rebounding. The bmw stock rose by 2. 9 per cent, reverting to a new week since 8 may; the bmw share of adrs rose by a maximum of 5. 2 per cent, a preliminary decline of 2. 7 per cent. The daimreo stock rose by 1. 99 per cent, the highest since 10 may; its us share of adrs rose by a maximum of 3 per cent, with an initial drop of 2. 3 per cent。
Following the boost of the car stock, the european stock market rose collectively. The pan-european performance 300 index rose by 0. 52 per cent, reporting 1487. 71 points. The european stoxx 600 index rose by 0. 46 per cent, with a drop of 0. 7 per cent in the disk; the european stoxx gas index rose by 1. 97 per cent. In germany, the dax 30 index rose by 0. 9 per cent, with a one-per-cent drop in disks and an amplitude of nearly 2 per cent; in the case of mass cars, it rose by 0. 73 per cent and in the case of bmws by 2. 46 per cent。
