- In today’s CEO daily: Diane Brady on Trump’s new taxes for international trade.
- The big story: The tariffs were worse than expected.
- The markets: Global sell -out.
- Analystennotizen by Wedbush, Icingand storm the financing – you suspected it – the tariffs, jobs and Tesla.
- Plus: All messages and aqua cooler chat from Assets.
Good morning Friend or enemy? It was hardly important yesterday when Donald Trump revealed extensive goals against all the United States trading partners. The numbers of the headlines: a 10% base tariff for all imports with specific and higher tariffs for some countries, including 34% for China (in addition to the existing 20% tariffs), 20% on the EU or 46% or 49% on Vietnam or Cambodia. “You do it to us, we do it to you,” said the president during the rose garden tariff. Some food when the Fallout begins:
It is worse than expected. How the White House was Kiss details From the plan deep into Tuesday, the markets showed some signs of life, as the investors hoped for the last minute. After the announcement on Wednesday, however, the shares made a dive. Only about half of what Americans buy is produced in America, so Data from the trade departmentAnd industries such as the car sector with complex global supply chains.
This undermines the China of the manufacturer China+1 strategy. Some Asian countries are particularly hard with Customs of 40% or moreThe advance of the US manufacturers to diversify the production beyond China beyond China according to neighbors such as Vietnam, Bangladesh and Cambodia, especially in areas such as textiles and electronics. gap Inc. – Home to Gap, AthletaBanana Republic and Old Navy – has reduced its exposure to China in recent years, but still Sources the vast majority of their clothing The new tariffs hit Asian countries hard. Change takes time.
A global counter reaction could violate all companies. Trump described yesterday’s tariffs as “Friendly” for America’s trading partner. From the anger of Foreign leaders For foreign consumers who boycott US products and trips, it is clear that our partners do not agree. The hostility is bad for the business, with Ey, Goldman Sachs and Moodys economists Prediction of a lower growth from self -inflicted tariff wounds. I spoke to Niccolo de Masi this week, CEO of the Quantum Computing Company Ionq. “We build all of our things in America,” he said. “We are not negatively affected by tariffs, but we are realistic that our ability to be successful in Asia and Europe is accompanied by more presence.” This is more difficult if a trade war triggers nationalist instincts.
This could devastate stubborn economies and industries. Jacques Vandermeren, the CEO of the port of Antwerpen-Brugeren, Europe’s second largest port, told my colleague Peter Vanham At the beginning of autumn: “If Trump builds tariffs of up to 10 percent, we will avoid.” Vandermeren warned much higher than that, according to Vandermeren, the catastrophe for Europe’s steel, aluminum, car and other export -oriented industries could mean. The fighting watch industry in Switzerland, the Exports more products to the USA than to any other countrywill now be exposed to a high tariff of 31%. Will those who long for a Rolex or Patek Philippe satisfy themselves with a replacement? I doubt it.
In the coming days it will negotiate a lot and the managing directors know from experience that what appears on paper at a press conference may not lead to measures at the border – or can be viceally reversed. And US consumers, whose expenses make up more than two thirds of the GDP, are not so enthusiastic about all these tariffs that they will be informed of at the end. Consumer feeling Persecuted by the University of Michigan has reduced the lowest level since 2022 this year.
Adam Smith once wrote that the nations rarely thrive by asking their neighbors. That was in 1776 when mercantilism died and the United States was born. The young nation freed from British rule and used tariffs to develop native industries that later took part in the world stage. Since a USA, which has recently returned to tariff levels in the early 1900s, when cars just came on stage, the effects could be very different.
Further news below.
Contact CEO every day via Diane Brady at diane.brady@fortune.com
This story was originally on Fortune.com
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