Britain and United States agreed on Thursday to resolve a long-running trade dispute over Airbus (AIR.PA) and Boeing (BA.N) and turn their attention to tackling Chinese subsidies, echoing a five-year tariff truce announced by Washington and Brussels. Together, the matching deals draw a line under 17 years of battles at the World Trade Organization over aid for the world’s largest planemakers and establish a common front against “non-market” funding, in a reference to China’s rising aerospace sector.
US tariffs on $34 billion worth of Chinese goods began on Friday prompting China to retaliate by immediately implementing tariffs on some US imports, escalating the trade war. The Trump administration argued the tariffs are necessary to pressure China into abandoning unfair practices. The US may ultimately impose tariffs on Chinese goods worth $500 billion.
President Trump criticized Harley-Davidson on Tuesday, saying the company ‘surrendered’ in the trade war with Europe by shifting production out of the US and warned it will ‘be taxed like never before.’ CEOs from energy companies Chevron and Exxon said on Tuesday they worry the trade war could destabilize the global economy.
The US and China ended trade talks on Sunday without coming to any official agreements. China refused to commit to purchasing more American goods without an agreement from the Trump administration not to impose further tariffs on Chinese exports. The Chinese government said the Beijing talks produced ‘positive and concrete’ developments.
Following President Trump’s decision to impose tariffs on steel and aluminum imports, US allies are confused and frustrated and the EU released a statement on Thursday saying they believe the ‘tariffs are unjustified and at odds with World Trade Organisation rules.’ The tariffs affect the EU, Canada, and Mexico and became active Thursday at midnight.
In President Trump’s latest move in his America First trade agenda, he ordered a national security probe into vehicle imports which could result in tariffs. The Commerce Department said the probe will investigate whether imports threaten the industry’s health and development. The governments of Japan, China, and South Korea said they will monitor the situation.
President Trump is working on a trade deal with Beijing to avoid a trade war and clear the way for the North Korean summit. The second round of negotiations occurred on Thursday, although Trump expressed doubts of success. US officials announced China is preparing to offer to buy $200 billion in American goods, allowing the US to reduce the trade deficit, however, China denied such claims.
President Trump signed the controversial orders imposing heavy tariffs on steel and aluminum imports, Thursday, defying opposition from his own party and overseas allies. Trump chose to exempt Mexico and Canada from the tariffs. Meanwhile, US allies signed a separate free-trade deal, which the US had originally negotiated, but backed out of, challenging Trump’s view on trade.
With President Trump preparing to sign the plan imposing tariffs on metal imports Thursday, Republican lawmakers appealed to Trump to drop the tariffs, fearing retaliatory action which stunts US economic growth. The White House announced that some countries, including Canada and Mexico, may be exempt from the tariffs for 30 days, on national security grounds.
Republicans expressed concerns, with House Speaker Paul Ryan saying he’s ‘extremely worried’ about trade war, after President Trump announced plans to raise tariffs on aluminum and steel imports. Trump responded to concerns saying ‘No, we’re not backing down.’ Canadian Prime Minister Justin Trudeau called Trump to register his ‘serious concern,’ as well.