U.S. President Donald Trump announced sweeping reciprocal tariffs on Wednesday, including a 10 percent flat tax on all U.S. imports. Trump slapped additional duties on around 60 nations, ranging between 15 percent and 49 percent. Nations with the largest trade imbalances with the U.S. face higher rates, even as Trump said he had sweetened the deal by only imposing about half of what other countries charge.

Donald Trump's reciprocal tariffs likely to escalate trade war

While the US And EU clash over tariffs, the UK has found itself in an unusual position—watching from the sidelines as global trade tensions escalate. Instead of taking an aggressive stance, the UK appears to be benefitting by simply staying out of the fight.

Decoding Britain’s advantage amid global trade storm

Asian stocks retraced early losses, and stock futures rose on Friday. However, the strength of those bets lacked any conviction. The bounce in global stocks on Wednesday didn't last long. Shares in Japan, Australia and Hong Kong climbed on Friday, retracing losses from the previous session. Wall Street futures contracts advanced as a stopgap funding bill looked set to pass and avoid a US government shutdown.

Trade war fears choke recovery hopes

The game of tariffs continues to hit new levels every day. The United States has imposed a 25% tariff on all steel and aluminum imports, extending duties to downstream products like nuts, bolts, and soda cans. US Commerce Secretary Howard Lutnick confirmed the move, adding that copper tariffs could follow. In response, Canada—America’s largest foreign supplier of these metals—announced retaliatory tariffs on US steel, aluminum, computers, and sports equipment.

Trump’s tariffs ignite global trade war

U.S. President Donald Trump backed down on a pledge to double tariffs on steel and aluminum from Canada to 50%, just hours after announcing the higher tariffs. This decision came after Ontario Premier Doug Ford suspended a new surcharge on Canadian electricity. Watch in for more details!

US-Canada trade war: Canada backs down from 25% electricity surcharge after Trump threat

Following Canada’s imposition of duties on Chinese steel, aluminum, and EVs in October 2024, China declared retaliatory tariffs targeting Canadian food and agricultural products. 

China Canada: $2.6Bn Canadian Products Face New Chinese Tariffs | China Tariffs | Canada News | WION

A couple of days after proposing universal tariffs of 25 per cent on autos, drugs and pharma imports, US President Donald Trump hinted at a trade deal with China. <o:p></o:p>Trump said a trade deal with China is "possible," even though Beijing is one of the key targets of his tariff rhetoric. The president had agreed to "A great trade deal with China" in 2020.<o:p></o:p>
However, as soon as he was in the white house, trump announced sweeping tariffs on foes and allies. And since then, has shown that he wants a deal and not a war. One can say he is getting a deal based on how things have turned out since his threats of import taxes. <o:p></o:p>India, for example, has given him some concessions and is rushing for a trade deal with the US before his reciprocal and other tariffs kick in. Trump's argument for trade levies is to lower the massive US trade deficit.&nbsp;<o:p></o:p>
<h2 class="MsoNormal">Beijing says 'tariff wars produce no winners'<o:p></o:p></h2>
While Beijing has retaliated with tit-for-tat tariffs on US imports in response to trump's hint of a China deal, Beijing said there are no winners in a trade war. That gives hope of a trade deal sooner rather than later. <o:p></o:p>Data shows that China has the largest trade surplus with the United States in goods&mdash;295.4 billion dollars in 2024. Separately, the European union has responded to trump's tariffs with a promise of similar taxes.<o:p></o:p>
However, the EU trade chief has also signalled the bloc's willingness to negotiate a deal. Within the 27-nation EU, Germany has by far the largest trade surplus with the United States. <o:p></o:p>That is mainly because of the German automobile industry and chemical giants. Still, with trump using the zero-sum mentality more as a strategy, hopes for US trade deals with trading partners have risen.&nbsp;<o:p></o:p>
(With inputs from the agencies)<o:p></o:p>

Business & Economy: Trump said a trade deal with China is "possible," even though Beijing is one of the key targets of his tariff rhetoric. The president had agreed to "A great trade deal with China" in 2020.

A couple of days after proposing universal tariffs of 25 per cent on autos, drugs and pharma imports, US President Donald Trump hinted at a trade deal with China. Trump said a trade deal with China is "possible," even though Beijing is one of the key targets of his tariff rhetoric. The president had agreed to "A great trade deal with China" in 2020. However, as soon as he was in the white house, trump announced sweeping tariffs on foes and allies. And since then, has shown that he wants a deal and not a war. One can say he is getting a deal based on how things have turned out since his threats of import taxes. India, for example, has given him some concessions and is rushing for a trade deal with the US before his reciprocal and other tariffs kick in. Trump's argument for trade levies is to lower the massive US trade deficit. Beijing says 'tariff wars produce no winners' While Beijing has retaliated with tit-for-tat tariffs on US imports in response to trump's hint of a China deal, Beijing said there are no winners in a trade war. That gives hope of a trade deal sooner rather than later. Data shows that China has the largest trade surplus with the United States in goods—295.4 billion dollars in 2024. Separately, the European union has responded to trump's tariffs with a promise of similar taxes. However, the EU trade chief has also signalled the bloc's willingness to negotiate a deal. Within the 27-nation EU, Germany has by far the largest trade surplus with the United States. That is mainly because of the German automobile industry and chemical giants. Still, with trump using the zero-sum mentality more as a strategy, hopes for US trade deals with trading partners have risen. (With inputs from the agencies)

Trump floats another idea on trade, this time with China

Global markets are exuding a sense of resilience despite the fog of uncertainties.&nbsp;US 'Big tech' stock prices have fallen, the value of the safe-haven yen has soared to new heights, and fears of a worldwide trade war have taken hold.
However, risk assets show the ability to bounce back. Shares in South Korea, Japan, and Australia rose. Stocks in Hong Kong and mainland China fluctuated in opening trade.
<h2>Traders look beyond tariff wars, for now</h2>
Following two consecutive days of gains for the S&amp;P 500 and the Nasdaq 100, which extended a rebound from Monday's decline, US Equity futures remained steady.&nbsp;Reasons for this resiliency, or the ability of the market to bounce back, include lower US Treasuries and dollars and abundant market liquidity.
The combination eases financial conditions globally, encouraging risk-taking in broader markets. However, the latest earnings readings weighed on tech stocks.&nbsp;Shares of Alphabet, Google&rsquo;s parent company, plummeted 7 per cent on Wednesday, their worst day in a year, and AMD shares lost 6 per cent.
Still, the Nasdaq recouped its early losses to finish the day marginally higher. Major technology stock index 'Faang' ended the day in the green, ending near its recent all-time high.
After China officially launched a complaint with the World Trade Organisation, all eyes in Asia are on what else Beijing would do in reaction to Trump's 10 per cent tariffs on Chinese goods.&nbsp;Following Wednesday's Lunar New Year holiday, Chinese markets were mostly quiet, but yuan pressure is mounting.
In other currency news, investors priced in tighter monetary policy from Japan following solid wage numbers, sending the yen soaring over 1 per cent to an eight-week high versus the dollar.
In commodities, gold held near its record high after Trump accentuated geopolitical risks and worries about the global economy.&nbsp;Gold resumed its rally as trade war jitters continued to attract investors to the safe-haven metal, sending it to fresh record highs on Wednesday.
Oil prices fell as US crude inventories swelled and traders worried about China-US trade. Benchmark Brent crude was down over 2 per cent to trade below 75 dollars a barrel.&nbsp;
Supply concerns also weighed on oil. Trump drove Iran's oil exports to near zero during part of his first term after reimposing sanctions to curtail the country's nuclear program.
(With the inputs from the agencies)

Business & Economy: US 'Big tech' stock prices have fallen, the value of the safe-haven yen has soared to new heights, and fears of a worldwide trade war have taken hold. 

Global markets are exuding a sense of resilience despite the fog of uncertainties. US 'Big tech' stock prices have fallen, the value of the safe-haven yen has soared to new heights, and fears of a worldwide trade war have taken hold. However, risk assets show the ability to bounce back. Shares in South Korea, Japan, and Australia rose. Stocks in Hong Kong and mainland China fluctuated in opening trade. Traders look beyond tariff wars, for now Following two consecutive days of gains for the S&P 500 and the Nasdaq 100, which extended a rebound from Monday's decline, US Equity futures remained steady. Reasons for this resiliency, or the ability of the market to bounce back, include lower US Treasuries and dollars and abundant market liquidity. The combination eases financial conditions globally, encouraging risk-taking in broader markets. However, the latest earnings readings weighed on tech stocks. Shares of Alphabet, Google’s parent company, plummeted 7 per cent on Wednesday, their worst day in a year, and AMD shares lost 6 per cent. Still, the Nasdaq recouped its early losses to finish the day marginally higher. Major technology stock index 'Faang' ended the day in the green, ending near its recent all-time high. After China officially launched a complaint with the World Trade Organisation, all eyes in Asia are on what else Beijing would do in reaction to Trump's 10 per cent tariffs on Chinese goods. Following Wednesday's Lunar New Year holiday, Chinese markets were mostly quiet, but yuan pressure is mounting. In other currency news, investors priced in tighter monetary policy from Japan following solid wage numbers, sending the yen soaring over 1 per cent to an eight-week high versus the dollar. In commodities, gold held near its record high after Trump accentuated geopolitical risks and worries about the global economy. Gold resumed its rally as trade war jitters continued to attract investors to the safe-haven metal, sending it to fresh record highs on Wednesday. Oil prices fell as US crude inventories swelled and traders worried about China-US trade. Benchmark Brent crude was down over 2 per cent to trade below 75 dollars a barrel. Supply concerns also weighed on oil. Trump drove Iran's oil exports to near zero during part of his first term after reimposing sanctions to curtail the country's nuclear program. (With the inputs from the agencies)

Global markets stay resilient amid uncertainties

In the raging US-China trade war, a cool China has stumped aggressive Trump. Not only did Beijing swiftly respond to Washington by imposing counter-tariffs, but also accused the United States of "suppression" after its postal service said it is suspending parcels from China and Hong Kong - a move that could hit Chinese E-Commerce giants Temu and Shein. Watch this video to find out more.

Cool China stumps aggressive Trump

Canadian Prime Minister Justin Trudeau delivers a strong warning to American citizens about the consequences of President Trump’s tariffs. He highlights the potential risks to U.S. jobs, security, and everyday costs like food and gas. Trudeau also emphasizes that the tariffs violate the Free Trade Agreement, escalating tensions in the ongoing Canada-U.S. trade dispute.

Trade war: Canada and Mexico hit back at US with retaliatory tariffs

To further isolate the Russian military and economic infrastructure in the weeks leading up to Donald Trump's inauguration,... The Biden administration is considering additional, more severe penalties on Russia's profitable oil trade. Watch in for more details!

US Aims To Weaken Putin Ahead Of Trump

In anticipation of a potential trade war between the U.S. and China, president Xi Jinping has shown a new arsenal of measures in response to any trade threat. China showcased a new range of measures it is ready to employ if trump follows through on his promise to impose tariffs on the world's second-largest economy. Watch in for more details!

China Gets A Head Start On A Looming Trade War With The US

The United States is threatening a significant shake-up in its trade relations with Canada and Mexico. President-Elect Trump has proposed imposing tariffs of up to 25 per cent on key imports.

A Reuters report highlights that it includes crude oil, automobiles, and agricultural goods. This move comes amid escalating disputes over border security and trade imbalances.

For Canada, the potential tariffs on crude oil could severely impact the nation’s economy, given that over 80 per cent of its oil exports are destined for the US.

Meanwhile, Mexico, which relies heavily on automobile and agricultural exports to its northern neighbour, could face severe economic repercussions.

Mexican president Claudia Sheinbaum during a press conference highlighted and I quote “to one tariff will come another and so on, until we put our common businesses at risk. For example, Mexico’s main exporters to the United States are General Motors, Stellantis and Ford Motor Company, which came to Mexico 80 years ago, why put a tax on them that puts them at risk? It is not acceptable and would cause the US and Mexico inflation and job losses.”

The proposed tariffs would have far-reaching consequences.

Canadian crude oil exports, valued at over $90 billion annually, are a key target.

For Mexico, auto exports worth nearly $55 billion and agricultural exports exceeding $25 billion annually face risks.

Analysts warn that such tariffs could raise prices for American consumers, disrupt supply chains, and create uncertainty for businesses.

Trade-dependent sectors, including manufacturing and agriculture, could see job losses and reduced investments in all three countries.

Experts are also raising concerns about the broader impact on North American economic growth, which relies heavily on smooth cross-border trade.

Steven Ricchiuto, Mizuho Securities USA, chief economist, comments and I quote, "Clearly, there's a lot of automobile-related activity that goes on between the United States, Mexico and the United States and Canada. That's why I was saying it depends on how that's done, what's carved out, what's not carved out in terms of the tariffs. So, again, until you see the actual details, it's hard to make an assessment as to where we're actually going with this.”

This latest tariff proposal also carries political ramifications. Both nations are major trading partners for the US, with combined annual trade exceeding $1.5 trillion. Economists caution that disrupting these ties could weaken the region’s global competitiveness.

Meanwhile, the us administration defends the move, citing the need to address longstanding trade imbalances and border security concerns. As negotiations continue, the stakes remain high for North&nbsp;America’s economic and diplomatic future.

(With inputs from Reuters)

The United States is threatening a significant shake-up in its trade relations with Canada and Mexico. President-Elect Trump has proposed imposing tariffs of up to 25 per cent on key imports.

The United States is threatening a significant shake-up in its trade relations with Canada and Mexico. President-Elect Trump has proposed imposing tariffs of up to 25 per cent on key imports. A Reuters report highlights that it includes crude oil, automobiles, and agricultural goods. This move comes amid escalating disputes over border security and trade imbalances. For Canada, the potential tariffs on crude oil could severely impact the nation’s economy, given that over 80 per cent of its oil exports are destined for the US. Meanwhile, Mexico, which relies heavily on automobile and agricultural exports to its northern neighbour, could face severe economic repercussions. Mexican president Claudia Sheinbaum during a press conference highlighted and I quote “to one tariff will come another and so on, until we put our common businesses at risk. For example, Mexico’s main exporters to the United States are General Motors, Stellantis and Ford Motor Company, which came to Mexico 80 years ago, why put a tax on them that puts them at risk? It is not acceptable and would cause the US and Mexico inflation and job losses.” The proposed tariffs would have far-reaching consequences. Canadian crude oil exports, valued at over $90 billion annually, are a key target. For Mexico, auto exports worth nearly $55 billion and agricultural exports exceeding $25 billion annually face risks. Analysts warn that such tariffs could raise prices for American consumers, disrupt supply chains, and create uncertainty for businesses. Trade-dependent sectors, including manufacturing and agriculture, could see job losses and reduced investments in all three countries. Experts are also raising concerns about the broader impact on North American economic growth, which relies heavily on smooth cross-border trade. Steven Ricchiuto, Mizuho Securities USA, chief economist, comments and I quote, "Clearly, there's a lot of automobile-related activity that goes on between the United States, Mexico and the United States and Canada. That's why I was saying it depends on how that's done, what's carved out, what's not carved out in terms of the tariffs. So, again, until you see the actual details, it's hard to make an assessment as to where we're actually going with this.” This latest tariff proposal also carries political ramifications. Both nations are major trading partners for the US, with combined annual trade exceeding $1.5 trillion. Economists caution that disrupting these ties could weaken the region’s global competitiveness. Meanwhile, the us administration defends the move, citing the need to address longstanding trade imbalances and border security concerns. As negotiations continue, the stakes remain high for North America’s economic and diplomatic future. (With inputs from Reuters)

US threatens tariffs on Canada and Mexico, sparking trade crisis

Asian stocks fell on Tuesday following US President-elect Donald Trump’s threat to increase trade tariffs on China and other countries, sparking concerns of a trade war. Watch this report for more details!

Asian Stocks Tumble Amid Trade Woes

Canadian Prime Minister Justin Trudeau has cautioned that imposing tariffs or trade barriers on Canadian goods would not only damage Canada’s economy but also hurt American workers and jobs according to a detailed report by Bloomberg.

Speaking at a press conference in Vancouver, Trudeau emphasized the deep economic ties between the United States and Canada, highlighting the intertwined nature of their supply chains. "The interconnectedness between the supply chains in Canada and the United States means that any barriers at the border will inevitably hurt American workers and American jobs," Trudeau stated, addressing the potential consequences of US protectionist trade policies, the Bloomberg report explained further.

Trudeau’s remarks came in response to US President Donald Trump’s trade stance, which includes imposing a 10 per cent tariff on all imports to the US Trump’s protectionist agenda aims to bolster American manufacturing and bring production back to the US, but Trudeau stressed that such measures could end up being counterproductive.

A report by economists at Desjardins forecasts that Canada’s real GDP could face a 1.7 per cent decline by 2028 if these tariffs are implemented, illustrating the far-reaching impact of trade barriers between the neighbouring countries.

The Canadian Prime Minister also pointed out that Trump’s approach, which seeks to limit imports in favour of domestic production, could have unintended consequences for the American workforce. "Tariffs or a thickening of the border will create disruptions in both economies," Trudeau warned, adding that the flow of goods between the two nations is essential for the prosperity of both.

Canada shares common ground with the US

Trudeau made it clear that Canada shares common ground with the US in addressing global trade imbalances, especially with China. Both countries have imposed tariffs on Chinese steel, aluminium, and electric vehicles, aiming to curb what they view as unfair trade practices.

Despite these shared objectives, Trudeau emphasized that the US-Canada trade relationship is a vital and mutually beneficial one, and measures that increase trade friction would have a detrimental effect on both sides.

In a direct appeal to US blue-collar workers, Trudeau argued that the trade barriers Trump advocates could backfire, impacting American jobs that rely on Canadian exports. He reiterated that Canada is a reliable and valuable partner for the US and that close cooperation between the two countries remains essential for maintaining their competitive edge in the global market.

Ultimately, Trudeau's message was clear: any moves to disrupt cross-border trade would harm not just Canadian workers but American ones as well. Both nations, he suggested, would be better served by strengthening their trade ties rather than weakening them.

Canadian Prime Minister Justin Trudeau has cautioned that imposing tariffs or trade barriers on Canadian goods would not only damage Canada’s economy but also hurt American workers and jobs according to a detailed report by Bloomberg.

Canadian Prime Minister Justin Trudeau has cautioned that imposing tariffs or trade barriers on Canadian goods would not only damage Canada’s economy but also hurt American workers and jobs according to a detailed report by Bloomberg. Speaking at a press conference in Vancouver, Trudeau emphasized the deep economic ties between the United States and Canada, highlighting the intertwined nature of their supply chains. "The interconnectedness between the supply chains in Canada and the United States means that any barriers at the border will inevitably hurt American workers and American jobs," Trudeau stated, addressing the potential consequences of US protectionist trade policies, the Bloomberg report explained further. Trudeau’s remarks came in response to US President Donald Trump’s trade stance, which includes imposing a 10 per cent tariff on all imports to the US Trump’s protectionist agenda aims to bolster American manufacturing and bring production back to the US, but Trudeau stressed that such measures could end up being counterproductive. A report by economists at Desjardins forecasts that Canada’s real GDP could face a 1.7 per cent decline by 2028 if these tariffs are implemented, illustrating the far-reaching impact of trade barriers between the neighbouring countries. The Canadian Prime Minister also pointed out that Trump’s approach, which seeks to limit imports in favour of domestic production, could have unintended consequences for the American workforce. "Tariffs or a thickening of the border will create disruptions in both economies," Trudeau warned, adding that the flow of goods between the two nations is essential for the prosperity of both. Canada shares common ground with the US Trudeau made it clear that Canada shares common ground with the US in addressing global trade imbalances, especially with China. Both countries have imposed tariffs on Chinese steel, aluminium, and electric vehicles, aiming to curb what they view as unfair trade practices. Despite these shared objectives, Trudeau emphasized that the US-Canada trade relationship is a vital and mutually beneficial one, and measures that increase trade friction would have a detrimental effect on both sides. In a direct appeal to US blue-collar workers, Trudeau argued that the trade barriers Trump advocates could backfire, impacting American jobs that rely on Canadian exports. He reiterated that Canada is a reliable and valuable partner for the US and that close cooperation between the two countries remains essential for maintaining their competitive edge in the global market. Ultimately, Trudeau's message was clear: any moves to disrupt cross-border trade would harm not just Canadian workers but American ones as well. Both nations, he suggested, would be better served by strengthening their trade ties rather than weakening them.

Trudeau warns US tariffs on Canada would harm American workers

The European Union's (EU) recent decision to impose tariffs of up to 35.3 per cent on Chinese electric vehicles (EVs) has provoked significant backlash from Beijing. This move follows an anti-subsidy investigation that determined Chinese state support unfairly undermines European automakers, as reported by AFP.

Tariffs have sparked controversy within EU<o:p></o:p>

The introduction of these tariffs has sparked controversy within the EU, particularly in countries like Germany and Hungary, which fear that escalating tensions with China could lead to a trade war. In response, the Chinese government expressed its discontent, stating it does not "agree with or accept" the tariffs and has lodged a complaint with the World Trade Organization (WTO). The Ministry of Commerce in China asserted that it will "take all necessary measures to protect the legitimate rights and interests of Chinese companies firmly."

EU Trade Chief Valdis Dombrovskis defended the decision, claiming that the tariffs are a necessary measure to ensure fair market practices and protect the European industrial base. He emphasised that while the EU welcomes competition in the EV sector, it must be conducted on a level playing field.

However, the tariffs have not been universally supported within the EU. Germany's leading auto industry association warned that these duties could trigger a widespread trade conflict. Additionally, a Chinese trade group criticised the "politically motivated" nature of the tariffs and called for dialogue between the two parties. The new tariffs are set to supplement the existing 10 per cent import duty on Chinese EVs and will take effect immediately after being published in the EU’s official journal.

The EU’s investigation concluded that China’s subsidies created an unfair competitive advantage, prompting the imposition of these definitive tariffs for a five-year period. Various Chinese automakers, including Geely and SAIC Motor, will face additional duties ranging from 7.8 per cent to 35.3 per cent. 

Despite some EU member states opposing the tariffs, the opposition fell short of the majority that needed to block the legislation. The EU's actions are seen as an effort to safeguard its automotive industry, which is vital to its economy and employs approximately 14 million people.

French Finance Minister Antoine Armand supported the decision, asserting it was crucial for defending European trade interests at a time when the automotive sector is under pressure.

Conversely, major European car manufacturers, such as Volkswagen, criticised the tariffs, arguing they would not enhance the competitiveness of the European automotive industry. Volkswagen has faced stiff competition from China and has announced plans to shut down several factories in Germany, potentially resulting in significant job losses.

As discussions between the EU and China continue, the possibility remains for the tariffs to be lifted if a satisfactory agreement can be reached. The EU is open to negotiating minimum prices for Chinese vehicles to offset subsidies, while China has already hinted at retaliatory measures, including tariffs on EU brandy imports and investigations into EU agricultural subsidies.

This situation reflects a growing trend, as other regions like Canada and the United States have also enacted substantial tariffs on Chinese electric vehicles. 

Market participants and investors will closely follow these developments and it will help them in taking informed investment decisions depending on how the trade relations between the European Union and China evolve moving forward.

<o:p>&nbsp;</o:p>

<o:p>&nbsp;</o:p>

The European Union's (EU) recent decision to impose tariffs of up to 35.3 per cent on Chinese electric vehicles (EVs) has provoked significant backlash from Beijing.

The European Union's (EU) recent decision to impose tariffs of up to 35.3 per cent on Chinese electric vehicles (EVs) has provoked significant backlash from Beijing. This move follows an anti-subsidy investigation that determined Chinese state support unfairly undermines European automakers, as reported by AFP. Tariffs have sparked controversy within EU The introduction of these tariffs has sparked controversy within the EU, particularly in countries like Germany and Hungary, which fear that escalating tensions with China could lead to a trade war. In response, the Chinese government expressed its discontent, stating it does not "agree with or accept" the tariffs and has lodged a complaint with the World Trade Organization (WTO). The Ministry of Commerce in China asserted that it will "take all necessary measures to protect the legitimate rights and interests of Chinese companies firmly." EU Trade Chief Valdis Dombrovskis defended the decision, claiming that the tariffs are a necessary measure to ensure fair market practices and protect the European industrial base. He emphasised that while the EU welcomes competition in the EV sector, it must be conducted on a level playing field. However, the tariffs have not been universally supported within the EU. Germany's leading auto industry association warned that these duties could trigger a widespread trade conflict. Additionally, a Chinese trade group criticised the "politically motivated" nature of the tariffs and called for dialogue between the two parties. The new tariffs are set to supplement the existing 10 per cent import duty on Chinese EVs and will take effect immediately after being published in the EU’s official journal. The EU’s investigation concluded that China’s subsidies created an unfair competitive advantage, prompting the imposition of these definitive tariffs for a five-year period. Various Chinese automakers, including Geely and SAIC Motor, will face additional duties ranging from 7.8 per cent to 35.3 per cent. Despite some EU member states opposing the tariffs, the opposition fell short of the majority that needed to block the legislation. The EU's actions are seen as an effort to safeguard its automotive industry, which is vital to its economy and employs approximately 14 million people. French Finance Minister Antoine Armand supported the decision, asserting it was crucial for defending European trade interests at a time when the automotive sector is under pressure. Conversely, major European car manufacturers, such as Volkswagen, criticised the tariffs, arguing they would not enhance the competitiveness of the European automotive industry. Volkswagen has faced stiff competition from China and has announced plans to shut down several factories in Germany, potentially resulting in significant job losses. As discussions between the EU and China continue, the possibility remains for the tariffs to be lifted if a satisfactory agreement can be reached. The EU is open to negotiating minimum prices for Chinese vehicles to offset subsidies, while China has already hinted at retaliatory measures, including tariffs on EU brandy imports and investigations into EU agricultural subsidies. This situation reflects a growing trend, as other regions like Canada and the United States have also enacted substantial tariffs on Chinese electric vehicles. Market participants and investors will closely follow these developments and it will help them in taking informed investment decisions depending on how the trade relations between the European Union and China evolve moving forward.

EU's tariffs on Chinese electric vehicles ignite tensions with Beijing

The European Commission's recent announcement to impose tariffs of up to 38.1% on imported Chinese electric vehicles (EVs) has sent shockwaves through the European automotive industry. The decision, which could amount to billions of euros in tariffs, has left automakers, particularly those in Germany, fretting over the potential consequences of a trade war with China.

German automakers, such as BMW, Volkswagen, and Mercedes-Benz, have a significant stake in the Chinese market, with China accounting for nearly a third of their sales in the first quarter of the year. The tariffs, set to take effect in July, have prompted concerns that China may retaliate with similar measures, which could severely impact the profits of these companies and hinder their ability to transition effectively to electric vehicles.

Despite the tariffs, Chinese automakers are expected to continue exporting to Europe, as they have the financial capacity to absorb the extra costs and still maintain profitability. Some Chinese EV makers, such as BYD and Chery, have already announced plans to establish manufacturing facilities in Europe, which would allow them to circumvent the tariffs altogether.

The European automotive industry's reliance on Chinese components, especially for EV production, has further complicated the situation. China dominates a significant portion of the EV supply chain, and as BMW CEO Oliver Zipse warned, sparking a trade war could have dire consequences for Europe's Green Deal, as it is impossible to manufacture cars in Europe without Chinese imports.

The tariffs will also affect European automakers that have been importing Chinese-made EVs into Europe. Renault, for example, imports the affordable Dacia Spring EV from China, while Tesla and BMW import Chinese-made EVs and components for their European operations.

As the stakes continue to rise, German Chancellor Olaf Scholz has cautioned against isolationism and unlawful customs barriers, emphasising that such measures ultimately lead to higher prices and reduced prosperity for all involved parties. The CEOs of Volkswagen and Mercedes-Benz have also expressed their concerns, highlighting the negative effects of the tariffs and the importance of fair and free trade in fostering economic growth.

The European Commission's decision to impose tariffs on Chinese EVs has created a sense of uncertainty and apprehension within the European automotive industry. As automakers grapple with the potential consequences of a trade war and its impact on their businesses, both in China and in Europe, the future of the EV market and the industry's transition towards electrification hangs in the balance. 
&nbsp;

The European Commission's recent announcement to impose tariffs of up to 38.1% on imported Chinese electric vehicles (EVs) has sent shockwaves through the European automotive industry.

The European Commission's recent announcement to impose tariffs of up to 38.1% on imported Chinese electric vehicles (EVs) has sent shockwaves through the European automotive industry. The decision, which could amount to billions of euros in tariffs, has left automakers, particularly those in Germany, fretting over the potential consequences of a trade war with China. German automakers, such as BMW, Volkswagen, and Mercedes-Benz, have a significant stake in the Chinese market, with China accounting for nearly a third of their sales in the first quarter of the year. The tariffs, set to take effect in July, have prompted concerns that China may retaliate with similar measures, which could severely impact the profits of these companies and hinder their ability to transition effectively to electric vehicles. Despite the tariffs, Chinese automakers are expected to continue exporting to Europe, as they have the financial capacity to absorb the extra costs and still maintain profitability. Some Chinese EV makers, such as BYD and Chery, have already announced plans to establish manufacturing facilities in Europe, which would allow them to circumvent the tariffs altogether. The European automotive industry's reliance on Chinese components, especially for EV production, has further complicated the situation. China dominates a significant portion of the EV supply chain, and as BMW CEO Oliver Zipse warned, sparking a trade war could have dire consequences for Europe's Green Deal, as it is impossible to manufacture cars in Europe without Chinese imports. The tariffs will also affect European automakers that have been importing Chinese-made EVs into Europe. Renault, for example, imports the affordable Dacia Spring EV from China, while Tesla and BMW import Chinese-made EVs and components for their European operations. As the stakes continue to rise, German Chancellor Olaf Scholz has cautioned against isolationism and unlawful customs barriers, emphasising that such measures ultimately lead to higher prices and reduced prosperity for all involved parties. The CEOs of Volkswagen and Mercedes-Benz have also expressed their concerns, highlighting the negative effects of the tariffs and the importance of fair and free trade in fostering economic growth. The European Commission's decision to impose tariffs on Chinese EVs has created a sense of uncertainty and apprehension within the European automotive industry. As automakers grapple with the potential consequences of a trade war and its impact on their businesses, both in China and in Europe, the future of the EV market and the industry's transition towards electrification hangs in the balance.

European automakers brace for potential trade war

The trade war between the US and China has had an unintended consequence: The rise of Vietnam. Since 2018, US imports from Vietnam have more than doubled, reaching $114 billion last year.

US imports from Vietnam double, trade surplus triples since 2018

The US has increased tariff on Chinese Electronic Vehicles to 100%. Fresh tariff has also hit Chinese semiconductors, steel, medical products, among others. The measure affects $18 billion in imported Chinese goods. China has accused U.S. of bullying and has vowed retaliation.

Gravitas: US, China trade war reignites; what does it mean for India?

Joe Biden has accused China of cheating rather than competing on trade, Washington imposed steep tariff hikes on Chinese Imports like electric vehicles as well as semiconductors. Watch in for more details

US-China trade tensions: US hikes tariffs on Chinese goods, sparks tensions

Iran has halted the imports of tea and basmati rice from India. It has stopped signing contracts for fresh imports. Why? Is it because of the ongoing anti-hijab protests or is there something else? Molly Gambhir reports.

Gravitas: Iran halts imports of rice & tea from India

The U.S. trade deficit widened sharply in October as slowing global demand and a strong dollar weighed on exports. Watch this video to know more.

World Business Watch | US trade deficit rise 5.4 per cent to $78.2 billion in October

The U.S senate unanimously passed a bill to ban the import of all products from Xinjiang. If signed into law, U.S companies will have to prove that their products are not made using forced labour. Palki Sharma gets you a report.

Gravitas: U.S bans imports from Xinjiang

The Biden administration on Friday imposed sanctions against 34 companies and entities linked to China's military and policy towards the Uyghur minority including those involved with allowing exports to Russia and Iran.

US targets Chinese firms: Blacklists 34 companies

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