Your Italian Cheese, French Wine and Scottish Whisky are More Expensive, Because EU Tariffs
- Risks to the global economy increased at midnight Friday after the US imposed tariffs on EU goods worth $7.5 billion.
- The tariffs are a response by the US to the subsidies offered to European airplane manufacturer Airbus.
- This was after the body affirmed the US position that Airbus received illegal subsidies worth billions of dollars.
- Under the tariffs which went into effect on Friday midnight, duties of 10% will be slapped on Airbus planes, per DW.
- Prior to the duties going into effect reports on social media circulated showing establishments selling some of the targeted products using the tariffs as an opportunity to pump sales.
- Currently, American Airlines is the world’s largest operators of Airbus aircraft is Fort Worth, Texas-based American Airlines.
- As of June, American was operating 422 jets from the European planemaker.
China says the US needs to lift tariffs before a final trade deal
- China said on Thursday that it expected the US to roll back tariffs on its products as part of any final trade agreement, casting another layer of uncertainty on progress announced by President Donald Trump last week.
- On Friday, the Trump administration agreed to delay scheduled tariff increases as the two sides negotiated a yearlong trade dispute that has roiled the largest economies.
- Bloomberg reported Wednesday that China wanted the US to scale back tariffs before it would increase American farm imports, which it halted last year to retaliate against the Trump administration.
- A spokesperson at the Chinese embassy in Washington confirmed to Business Insider that China planned to increase agricultural purchases but did not offer comment on the amount.
- Tariffs on thousands of products remain in place despite the partial truce, and the US plans to expand duties to virtually all imports from China if a deal is not reached by December.
US retail sales unexpectedly drop as Trump's trade war hits the backbone of the economy
- A key measure of consumer spending unexpectedly dropped for the first time in seven months in September, raising concerns about one of the brightest spots in the US economy.
- The US expanded tariffs to more than $100 billion worth of additional imports from China at the start of September, a move that targeted mostly consumer products and rattled financial markets.
- The two sides reached a partial agreement to defuse tensions on Friday, while steep import taxes were expected to remain in place on thousands of products.
- A decline in auto sector receipts pulled retail sales lower in September.
- Excluding car sales, retail sales fell 0.1% in September.
- Read more: Nobel laureate Robert Shiller forewarned investors about the dot-com and housing bubbles.
- Now he tells us which irrational market behaviors have him most worried.
Farmers are skeptical of the partial trade pact Trump announced with China
- President Donald Trump said last week that the US and China reached the "greatest and biggest deal ever" for American farmers.
- As part of a partial trade ceasefire reached Friday, the Trump administration said China had pledged to purchase an annual $40 billion to $50 billion in US farm exports over two years.
- And in order to agree to agricultural terms, people familiar with the matter told Bloomberg, China could request that the US lift some of the tariffs it has levied over the past year.
- The embassy referred Business Insider to public comments by foreign ministry spokesperson Geng Shuang, who recently told reporters that the country would buy an unspecified amount of American agricultural goods.
- Soybean farmers have been hit particularly hard by the 19-month trade dispute with China, which has sent prices and exports of the commodity sharply lower.