Latest news with #tradeWars
CNA
03-07-2025
- Business
- CNA
World Peace Forum: Chinese vice president says tariff and trade wars will have "no winners"
A senior Chinese leader has made a subtle but pointed jab at US President Donald Trump's foreign and trade policies. Vice President Han Zheng repeated Beijing's stance that there are no winners in tariff and trade wars. Tan Si Hui reports.
Associated Press
03-07-2025
- Business
- Associated Press
Denmark launches its EU presidency facing war in Ukraine and Trump tariff chaos
AARHUS, Denmark (AP) — Denmark launched its presidency of the European Union on Thursday with a call for Europe to unite to take on war in Ukraine and chaos caused by U.S. President Donald Trump's global tariff hike which are likely to mark the Nordic country's six-month term at the helm of the world's biggest trading bloc. 'We have war on European soil. We face trade wars, and new tariffs, and we have our closest ally, in the United States, turning increasingly inward,' said Danish European Affairs Minister Marie Bjerre. 'Europe can no longer be in the shadow of the United States. We need now to stand on our own two feet.' Prime Minister Mette Fredericksen and European Commission President Ursula von der Leyen were in the western city of Aarhus for a day of celebratory events as Denmark started its eighth EU presidency since joining in 1973. Presidencies rotate between the 27 EU member countries every six months. The nation in charge sets policy priorities and organizes the bloc's working agenda. It's supposed to act as an 'honest broker,' setting aside national interests to foster consensus. Denmark is entering its term with the motto 'A Strong Europe in a Changing World.' Its aim is to help ensure the EU can take responsibility for its own security, boost economic competitiveness and tackle climate change. The ceremony was held as large parts of Europe sweltered in high temperatures. Russia's war on Ukraine, now in its fourth year, is seen as an existential challenge in Europe and will weigh heavily on most policy debate. Economic turmoil also lies ahead. Trump's 90-day tariff pause ends on July 9 with no EU-U.S. trade deal in place as yet. Getting defense on track and gunning for 5% NATO has warned that Russia could be ready to attack another European country in 3-5 years. To prepare, the military alliance — most of whose members are EU countries — has agreed that national military and defense-related investment should rise to 5% of GDP. Denmark's priority will be to set Europe on track to properly defend itself by 2030. That will require laying the groundwork for countries to buy the military equipment needed to execute NATO's defense plans with Trump's security priorities lying outside Europe. That will mean wrapping up negotiations on proposals that will help countries purchase and make military equipment together. Enlargement and another defense front Helping Ukraine, but also Moldova, to join the EU soon is another security priority. Moldova has been shaken by Russian meddling in the form of energy coercion, election interference and disinformation campaigns. Denmark says it aims to keep the two moving toward membership together, but Hungary is blocking Ukraine's path. Prime Minister Viktor Orbán insists that Ukraine should remain a buffer zone between Russia and NATO countries. With fresh elections in Moldova in September, pressure is mounting for the EU to 'decouple' their accession tracks. Bjerre said 'all political and practical means' will be used first to persuade Hungary — a small EU country and the only one standing in Ukraine's way — to lift its veto. She said it's important to send clear signals to Balkans countries. Most have waited many years to join. Honing a competitive edge As Trump wages tariff war, trade has changed drastically. The EU has sought new trade agreements with other countries, such as India, while other trade pacts are being revamped. Denmark says it's important to accelerate that process. The government in Copenhagen says it's also seeking to cut more bureaucratic red tape in order to speed up innovation. A major challenge looms in the form of the EU's next long-term budget. Von der Leyen plans to unveil the commission's blueprint for the seven-year spending package, which should enter force in 2028, on July 16. With defense spending increases weighing heavily on national purses, member countries are unlikely to want to stump up more funds for European priorities. Denmark's aim is to get the debate — which could run for two years — off on the right track. Managing climate change Despite some backsliding, the EU still holds to its goal of achieving climate neutrality by 2050, by cutting greenhouse gases and compensating for any remaining emissions. Denmark will lead work on setting a 2040 target to guide climate action and investment to keep the bloc on track. Part of that will be the transition away from fossil fuels to green energy forms. Russia's war on Ukraine has highlighted the dangers of energy dependence on any one supplier. Sanctions and political pressure have not stopped some EU countries of getting their oil and gas from Russia, although the level of dependency has dropped markedly since 2022. Denmark says the continued phase out remains a priority. Copenhagen also says it should be easier for farmers to respect EU rules. It wants the bloc's agricultural policy to be simple and business friendly. One goal is to finalize negotiations on a rule simplification package. Migration policy, outsourcing continues In 2021, Frederiksen spoke of a vision of 'zero asylum-seekers,' and her government will continue down the EU track of seeking 'innovative solutions' to better manage migrants. Unable to agree how best to cope, EU countries have mostly focused on deporting people. They've tried to establish 'return hubs' in countries outside the bloc where rejected asylum-seekers could be sent. That approach will continue. Denmark says it's important to persuade people not to set out for Europe in the first place. Work will also continue on preparing the vast asylum and migration policy pact to come into force next year. The pact was seen as the answer to Europe's migration woes, but countries still differ on how best to tackle the challenge. Under international law, people have a right to asylum if they fear for their lives, safety or persecution.
Bloomberg
01-07-2025
- Business
- Bloomberg
This Tiny African Kingdom Faces Trump's Highest Tariffs
Big countries with US trade imbalances measured in the hundreds of billions of dollars are dominating the headlines in the final week before President Donald Trump's universal tariff deadline. But the economic pain and uncertainty from tariff wars is reaching some of the smallest American trading partners, too.
Fast Company
18-06-2025
- Business
- Fast Company
Tariffs and trade wars: How businesses can prepare for the storm
I've lived through the chaos that tariffs and trade wars can unleash. If you run a business, invest in global markets, or simply care about the cost of living, you can't afford to ignore them. Tariffs may sound like policy jargon, but the ripple effects hit everything from your bottom line to the checkout line. Let's break down what tariffs are, the pros and cons of their use, and, more importantly, how to prepare when a trade war erupts. WHAT ARE TARIFFS? Tariffs are taxes placed on imported goods. Governments use them to make foreign products more expensive, thereby giving domestic producers a price advantage. Sounds smart in theory—but the reality is far more complicated. THE PROS OF TARIFFS 1. Protecting domestic industries One of the biggest advantages of tariffs is that they shield homegrown businesses from cheaper foreign competition. When a country imposes tariffs on imported steel, for example, it allows local steel manufacturers to remain competitive—even if they can't produce at the same low cost. 2. Encouraging local production Tariffs can serve as a catalyst for companies to source and produce locally. This boosts domestic employment and helps create self-sufficiency in key industries. 3. Leverage in negotiations Tariffs can be used as a bargaining chip. They give governments leverage when negotiating trade agreements, especially when other countries have unfair trade practices. THE CONS OF TARIFFS 1. Higher consumer prices Let's not sugarcoat it: Tariffs raise prices. When import costs rise, companies pass those costs on to consumers. That new washing machine or car you were eyeing? It's going to cost more. 2. Retaliation Trade wars don't happen in a vacuum. When one country imposes tariffs, others retaliate. Suddenly, your exports are getting hit with taxes abroad, and your once-thriving international sales dry up. 3. Supply chain disruption If you're sourcing components from multiple countries, tariffs can wreck your entire production line. Suddenly, your materials are delayed, your costs spike, and your margins evaporate. 4. Uncertainty for business planning I've seen companies delay major investments, hiring, and expansion plans simply because they couldn't predict where the next tariff would land. Uncertainty is toxic for growth. HOW TO PREPARE FOR A TRADE WAR As someone who believes in being proactive rather than reactive, I've developed a few strategies that can help any business or investor prepare for trade tensions. 1. Diversify your supply chain. Don't rely on one country for critical materials or products. Spread your sourcing across multiple regions to reduce risk. Yes, it may cost more upfront—but it's a hedge against future disruption. 2. Monitor tariff trends and political signals. You need to keep your eyes on government policy like you watch your bottom line. Changes in administration, diplomatic relations, or economic pressure points can all signal that a trade war is brewing. 3. Lock in long-term contracts. When tariffs are looming, negotiate long-term deals with suppliers at current prices. It can save you a fortune when costs spike overnight. 4. Optimize operational efficiency. In times of uncertainty, lean operations matter. Invest in automation, streamline processes, and cut waste. The leaner you are, the more you can absorb shocks without bleeding out. 5. Build cash reserves. Trade wars can slow sales and inflate costs. Cash flow becomes king. Make sure you've built a financial cushion to ride out periods of turbulence. 6. Evaluate your pricing strategy. If tariffs raise your input costs, decide whether to pass them on to customers or absorb them. This is a strategic decision that depends on your brand, market position, and customer loyalty. 7. Consider reshoring or nearshoring. If the numbers make sense, bring production closer to home or to stable, allied countries. It reduces exposure to unpredictable international policies and shortens your supply chain. FINAL THOUGHTS Tariffs and trade wars are part of the modern global economy, like it or not. Some view them as necessary protection. Others see them as economic warfare. The truth lies somewhere in between. I don't believe in waiting around to see which way the wind blows. I believe in staying prepared. You don't need to panic, but you do need a plan. Evaluate your exposure. Understand your risks. Diversify your operations. Then, when the next trade war hits—and it will —you won't just survive it. You can be one of the few standing tall in the storm, while others scramble to catch up. That's the difference between playing defense and playing to win.
Wall Street Journal
13-06-2025
- Business
- Wall Street Journal
American Consumer Outlook Brightens in June
The mood among American consumers brightened in June following signs President Trump's trade wars haven't caused major economic upheaval thus far, though sentiment still reflects an unsettled view of the economy. The University of Michigan said Friday its preliminary index of consumer sentiment for June was 60.5, above a final reading of 52.2 in May and the first increase the index had marked in six months. The index had previously fallen for four consecutive months before stabilizing in May. Its current reading remains about 18% lower than it was in December 2024, when sentiments had risen following the election.
