Trade

Dos and don’ts for UK CEOs meeting Trump

12 Jul 2018

The U.S. president’s visit to Britain will include a dinner on Thursday with business leaders. Counterparts stateside have achieved mixed results from public association with the Twitter-happy occupant of the Oval Office. Breakingviews offers some advice.

Trade war rouses U.S. from tax-cut stupor

11 Jul 2018

U.S. levies on another $200 bln in Chinese goods are causing Republican lawmakers and companies to sound the alarm. They could have done so sooner – but were drunk on the president’s tax-cut plan. The timing will make it hard to stop what’s already gone too far.

Trade war corporate welfare queues will get long

11 Jul 2018

Team Trump is targeting another $200 bln of Chinese goods, from fish to chemicals, for 10 pct tariffs. Both countries are also trying to reassure businesses with talk of exemptions and subsidies. That just leads to more unhealthy and lasting government influence over industry.

“Back to the Future” trade war lacks Reagan vision

10 Jul 2018

Trump is using 1980s tactics to hit China with tariffs. The Gipper used similar levies to curb Japanese chips, computers and TVs. But Reagan also helped kick off global talks that created the WTO. Today’s White House wields only sticks, not carrots that might boost U.S. exports.

Trump’s court pick a deregulatory gift to business

9 Jul 2018

Brett Kavanaugh, the president's Supreme Court nominee, has ruled against the consumer protection agency and net neutrality. His staunch conservatism ensures Democratic resistance. But if Republican numbers prevail, he can tilt the judicial balance to the right for a generation.

Tesla can beat Ford out of China trade pits

9 Jul 2018

Absorbing new tariffs on U.S. cars would probably have killed any chance of CEO Elon Musk hitting his goal of a profitable second half. Ford can soak them up. Strategically, the balance is different: Ford needs new ideas, while Tesla just has to get on with building a factory.

Rules of the road crystallizing for Chinese M&A

9 Jul 2018

Trade tensions and nationalism have tripped up transactions involving chipmakers Broadcom, Qualcomm and NXP, among others. Even as Beijing and Washington spar, though, dealmakers are adapting by scanning different regions or accepting smaller stakes and tougher conditions.

White House learns wrong lesson from labor market

6 Jul 2018

U.S. employers added 213,000 jobs in June, continuing a hot streak. President Trump reckons he has enough of an economic cushion to ratchet up trade wars with China and Europe. Yet firms are already delaying investment and facing higher costs. The buffer may dissipate.

Brexit dividend will be cashed in euros

6 Jul 2018

Nine months before Britain is due to leave the European Union its departure terms remain unclear. Prime Minister Theresa May’s latest plan cannot provide the certainty businesses seek: hence the shifting of investment and people elsewhere. Banks look set to lose whatever happens.

U.S.-China trade war to be fought in the trenches

6 Jul 2018

The first round of tariffs hits Friday. Trump says they might come to cover over $500 billion of exports. Beijing will retaliate. This will hit exporters, then deter investment, impede research, and twist reform. Rising mutual distrust has resulted in tragedy.

Auto tariff deal hopes are rightly restrained

5 Jul 2018

Carmaker shares rose after a German newspaper reported Europe may be able to avoid higher U.S. levies on exports. But BMW, Daimler and Volkswagen’s valuations are still down a fifth since January. Caution is sensible given the unpredictability of White House thinking on trade.

Malaysia taps brakes along China’s Belt and Road

5 Jul 2018

Prime Minister Mahathir Mohamad has suspended work on a $20 bln rail link between his country’s east and west coasts. It’s a rare setback for Beijing's massive infrastructure initiative. The project's importance, though, means Kuala Lumpur can afford to fight for a better deal.

High oil prices are as American as apple pie

4 Jul 2018

President Trump’s sniping at OPEC seems to be led by concerns about spiraling petrol pump prices. But these aren’t high enough to stop drivers from hitting the road. And while the U.S. remains a net oil importer, surging domestic production will also help the economy.

WTO pullout is self-fulfilling prophecy for Trump

3 Jul 2018

About 70 pct of cases filed this year at the world body target new U.S. tariffs. The White House also isn’t strongly pursuing disputes. Tilting America’s winning record to losses would bolster WTO rancor. Congress can stop a withdrawal but anti-trade rhetoric still resonates.

U.S. veto on China Mobile could grow wider

3 Jul 2018

The Trump administration wants to deny the $180 bln carrier’s longstanding bid to offer overseas calls from America. The financial impact will be negligible. But this could herald a broader U.S. campaign to weaken Beijing’s control over Chinese people and companies abroad.

Australia’s ban on Huawei would be a costly call

29 Jun 2018

Having passed a law on foreign meddling in its politics, Canberra now looks set to block the Chinese telecom giant from working on its next-generation mobile network. There are valid concerns. But a ban carries costs: pricier 5G, and worsening ties with its best export customer.

Viewsroom: Trump goes hog wild on trade

28 Jun 2018

The U.S. president rejected hard-liners’ calls to ban China investing in sensitive U.S. tech. Yet he’s pushing for tariffs that could cost carmakers $45 bln and is livid Harley-Davidson will no longer make EU-bound bikes in the States. Plus: tapping China’s shale reserves.

Softer U.S. China plan is no comfort for investors

27 Jun 2018

President Donald Trump rationally chose to use national-security deal reviews to restrict Chinese investment. It’s a win for his Treasury secretary over trade hardliners. But the review body is opaque, mixed messages have confused markets, and Trump still wants auto tariffs.

China dims chances to shine in Asia’s cloud

27 Jun 2018

Demand is rising for remote data services across the region, including from proliferating startups. Chinese vendors such as Alibaba are best placed to challenge the likes of Amazon. Beijing's push for "internet sovereignty," though, may impede expansion, even by local champions.

Harley throws wrench in Trump’s tariff gears

25 Jun 2018

The fallout from the president’s misguided economic nationalism has prompted the $7 bln American icon to move U.S. production of its EU-bound bikes overseas. Harley’s rational response to stupid policy should allow it to cut more than enough costs to outweigh short-term pain.