Trump tariffs - Garner Ted Armstrong Evangelistic Association https://www.garnertedarmstrong.org Let No Man Take Your Crown Sat, 08 Jun 2019 04:02:27 +0000 en-US hourly 1 https://www.garnertedarmstrong.org/wp-content/uploads/2024/05/cropped-Screen-Shot-2024-05-16-at-1.06.13-PM-32x32.png Trump tariffs - Garner Ted Armstrong Evangelistic Association https://www.garnertedarmstrong.org 32 32 Economic clouds gather over Germany https://www.garnertedarmstrong.org/economic-clouds-gather-over-germany-2/?utm_source=rss&utm_medium=rss&utm_campaign=economic-clouds-gather-over-germany-2 Fri, 07 Jun 2019 03:52:25 +0000 http://www.garnertedarmstrong.org/?p=27783 Stormy times ahead for the eurozone’s economic powerhouse? -Getty Images Concerns are growing over the strength of Germany’s economy – the largest in the eurozone – following the release of more gloomy official figures. Industrial production in April fell by … Read More

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Stormy times ahead for the eurozone’s economic powerhouse? -Getty Images

Concerns are growing over the strength of Germany’s economy – the largest in the eurozone – following the release of more gloomy official figures.

Industrial production in April fell by 1.9% compared with the previous month and exports were 0.5% lower than a year earlier.

Meanwhile new forecasts from the national central bank, the Bundesbank, reflect the more downbeat prospects.

The bank is now predicting growth of just 0.6% for this year, compared with a forecast of 1.6% it made in December.

The Bundesbank actually predicts a small decline in economic activity in the current quarter, though it expects growth to bounce back somewhat next year to 1.2%.

Trade disputes

Germany is especially exposed to the uncertainty that is affecting international trade.

It is a manufacturing powerhouse and sells a large share of what it produces abroad. Only the much larger economies of the United States and China export more goods.

China’s economic slowdown has made its mark on Germany. It is an important market for German industry.

BMW cars waiting to be loaded onto a ship
Germany could suffer if the US decides to impose additional tariffs on car imports – Getty Images

There is also what the Bundesbank calls a “muted outlook” for trade more generally.

The bank says disputes are weighing on global commerce.

That is a reference to the policies pursued by the Trump administration. Europe has been affected by the tariffs on steel and aluminium which the US imposed because, the US administration argued, imports of the metals were undermining national security.

Germany especially will be exposed if the US decides to impose additional tariffs on car imports, something President Trump is considering.

There is also a wider impact on confidence about international trade resulting from the tariff increases that the US and China have imposed on one another.

Rate cuts on the horizon?

These clouds over Germany were to some extent reflected in moves made on Thursday by the European Central Bank (ECB).

The ECB indicated that its ultra-low interest rates are likely to remain in place until at least mid-2020, six months longer than the guidance it had given previously.

Some members of the ECB’s policymaking committee also raised the possibility of further cuts in interest rates or a resumption of the bank’s quantitative easing programme, buying financial assets with newly created money.

The Bank’s president, Mario Draghi, said that the probability of a recession was very low. His explanation for the moves focused more on the eurozone’s persistently low inflation, which is currently below the Bank’s target of below, but close to, 2%.

It is worth remembering that Germany has very low unemployment – almost the lowest of the developed economies.

That said, it doesn’t bode well for the eurozone more widely that its largest economy is having a weak patch.

Source: https://www.bbc.com/news/business-48558809?intlink_from_url=&link_location=live-reporting-story

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]]> ‘Germany vs the rest of Europe’ Trump tariffs to rupture EU with backlash against Merkel https://www.garnertedarmstrong.org/germany-vs-the-rest-of-europe-trump-tariffs-to-rupture-eu-with-backlash-against-merkel/?utm_source=rss&utm_medium=rss&utm_campaign=germany-vs-the-rest-of-europe-trump-tariffs-to-rupture-eu-with-backlash-against-merkel Sun, 03 Jun 2018 00:40:20 +0000 http://www.garnertedarmstrong.org/?p=5737 DONALD Trump’s tough tariffs could rupture the European Union’s united front, with one leading currency strategist predicting a scenario where it will be “Germany versus the rest of the EU”. Europe hit back at the US after President Donald Trump slapped … Read More

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]]> DONALD Trump’s tough tariffs could rupture the European Union’s united front, with one leading currency strategist predicting a scenario where it will be “Germany versus the rest of the EU”.

Europe hit back at the US after President Donald Trump slapped tough tariffs on European steel and aluminium earlier this week.

The united front was delivered from European Union’s trade commissioner Cecilia Malmstrom who warned President Trump of retaliation.

However, the unity shown in response to the tariffs could quickly change, according to a leading currency strategist.

Jane Foley, a senior currency strategist at Rabobank, predicted that over time the tariffs will start to hurt and the rest of Europe will blame Germany.

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Ms Foley told Bloomberg: “The trade tariffs have potential ramifications for world growth, not just for this year or next year, but the longer term.

“This could become Germany versus the rest of the EU.

“If you look at the US Treasury report published last month that pinpointed the currency manipulators, they pinpointed Germany and in particular its trade surpluses.

“They advised Germany to increase domestic demand to get rid of its trade surplus. Trump has an issue with all countries that run a trade surplus with the US.
Foley

“That is Germany, that is not France. The issue about tariffs being slapped on the EU creates a problem.

“Will the rest of Europe turn their attention to Germany and say look, Trump has a problem with you and we are suffering the consequences.

“It’ll be interesting to see if a wedge will be driven between EU economic partners.”

The British International Trade Secretary Liam Fox called President Trump’s decision “wrong and illegal”.
Macron

The EU has already issued a 10-page list of tariffs on US goods ranging from Harley-Davidson motorcycles to bourbon.

However, Dr Fox cautioned against measures that might spark a full-blown trade war.

He told BBC Radio 4’s Today that the UK was still seeking tariff exemptions based both on specific products and also geographic location.

The cabinet secretary said: “We, of course, have the G7 leaders meeting at the end of the week where the Prime Minister will be raising this with President Trump alongside other leaders.”

Canada and Mexico, who were also hit by the tariffs, are still planning their own retaliatory moves.

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Source: https://www.express.co.uk/news/world/968541/Trump-trade-tariffs-EU-Merkel-unity-Europe-steel

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