Latest news with #Anti-CoercionInstrument
Irish Examiner
09-05-2025
- Business
- Irish Examiner
Government rules out cost-of-living measures to fend off effects of potential US tariffs
The Government does not intend to use a once-off cost-of-living package to mitigate the fall-out of tariffs if the EU cannot reach a deal with the US. Enterprise minister Peter Burke has ruled out a one-off package in this year's budget saying that to continue multi-billion euro cost-of-living measures each year will make inflation worse. Mr Burke said it is untrue to say that there are no measures in place to help people who are struggling, adding that they will look through the Summer Economic Statement and "what capacity will be to help people who are most vulnerable". He was speaking as tensions remain high between the US and the EU over tariffs with the European Commission having launched a "public consultation" on a list of US imports which could become subject to EU countermeasures if negotiations do not result in the removal of US tariffs. The Fine Gael TD said that he does not believe the EU has been aggressive on the matter but rather has simply taken steps to protect its market share. "What we have been doing has been very measured, very reasonable. We have to show our intent to defend our market share," Mr Burke told RTÉ Radio 1's Today with Claire Byrne. "But we also want to negotiate a solution that is the pathway that is going to improve trade and essentially have more business being done between both jurisdictions." It is important to avoid taking steps such as the EU using the Anti-Coercion Instrument which would target US digital services saying it would be "a tit-for-tat and a huge escalation in tensions". Mr Burke is set to lead a trade mission to the US in the Midwest next week and will be meeting with a number of politicians in Washington on Wednesday. The trip will be another opportunity to demonstrate how serious Ireland is about exporting into the US and highlighting the enormous contribution to the US economy, he said.
South China Morning Post
02-05-2025
- Business
- South China Morning Post
US tariffs a wake-up call for China to improve labour standards
The intensifying US-China trade tensions , most visibly in the form of US tariffs, have been framed as a significant threat to China's export-driven economy. The real impact of tariffs remains to be seen. Advertisement However, China should see the tariffs for what they really are: a signal that the world is losing patience with a model of growth built on cheap labour and poor protections, and with its impact on economies. This pressure need not be seen as a challenge, but as an opportunity. There is no better moment for China to pivot – to embrace labour reforms and build a more resilient and fairer economy at home. The tariffs are just the latest example of a world increasingly wary of China's manufacturing supremacy. From 'nearshoring', where the United States and its allies encourage companies to move manufacturing closer to home, to the European Union's Anti-Coercion Instrument , countries are acting to reduce their reliance on Chinese products. China has endeavoured to offset this growing economic risk. In the past decades, China's dependence on the US market has steadily declined . China's share of goods exports in its gross domestic product dropped from 36 per cent in 2006 to 18 per cent in 2023. Exports to the US accounted for 15 per cent of the total last year, down from around 20 per cent in 2017. 01:00 Trump justifies 'China tariffs' as US effort to curb 'greatest job theft in the world' Trump justifies 'China tariffs' as US effort to curb 'greatest job theft in the world'
Reuters
09-04-2025
- Business
- Reuters
Focus: Wall Street bosses fear anti-American backlash as Trump's trade war intensifies
NEW YORK/LONDON, April 9 (Reuters) - Wall Street bosses are girding for Europe to sideline American investment banks in response to the tariff war unleashed by U.S. President Donald Trump, fearing client boycotts and in a worst-case scenario, even formal restrictions. More than half a dozen senior bankers and advisers told Reuters they are bracing for European Union governments and companies to do more business with home lenders, which could quickly dent their market share. Two bank industry groups have discussed how Europe could act to restrict U.S. banks' activities in the region, two people said, and at least two major banks have also held internal talks on the matter, according to two senior executives. All requested anonymity because the discussions are private. One such tool at the EU's disposal is the Anti-Coercion Instrument (ACI), conceived in 2021 amid rising concerns at the time about the weaponization of trade by the U.S. and China. The ACI enables the bloc to place restrictions on foreign financial services companies, limiting their access to EU markets. Meanwhile, in a sign of possible anti-U.S. sentiment, French President Emmanuel Macron called for European companies to suspend planned investment in the United States following Trump's sweeping tariffs. JPMorgan CEO Jamie Dimon, asked if he was seeing any anti-American sentiment among clients in an interview with Fox Business' "Mornings with Maria" on Wednesday, said: "We've lost a couple of bond deals simply say that, you know, we'd rather just do this with a local bank than with a U.S. bank." EU countries on Wednesday approved the bloc's first countermeasures against the United States, joining China and Canada in retaliatory moves that could tip the world into recession. Following those announcements, Trump said he would temporarily lower new tariffs on many countries, even as he raised them further on imports from China. More measures could be on the way. EU Trade Commissioner Maros Sefcovic said on Monday the EU was ready to consider all retaliatory options. "We are prepared to use every tool to protect (the) single market," he said. Meanwhile, officials at the European Central Bank said they were fully mobilized to ensure the euro zone economy remained stable and well financed. Disentangling U.S. banks from the European financial system wouldn't be an easy task. While they account for only a very small portion, opens new tab of the region's loans and deposits, Wall Street firms dominate parts of securities trading, including derivatives. U.S. lenders have invested heavily in European businesses since the 2008 financial crisis, and even more so after Brexit. When Britain left the EU, Brussels demanded Wall Street banks bolster their EU outposts with additional capital and local staff, leading to thousands of jobs being created. While the U.S. banks don't provide a geographical breakdown of their earnings, they do provide a window into the size of the business. For example, Germany, the United Kingdom and France are JPMorgan's first, second and fourth-largest country exposures, opens new tab outside the U.S., respectively. The U.S. firm earned the biggest share of investment banking fees in the region during the first quarter of 2025, or about $514 million for 8.2% share of the total fee pool, LSEG data shows. Still, Europe can draw on its experience overcoming the complexities of Brexit, when it untangled a major partner from the bloc, another person familiar with the matter said. Restrictions on Wall Street firms could be partial, for example, the person added. ERODING ADVANTAGE "The advantage of the U.S. banks is eroding," said a senior financial executive, who declined to be identified discussing the policies. In securities trading, clients are debating whether they should switch to European counterparties from U.S. banks, another of the sources said, adding that this has never been discussed before. Recent dealmaking for the likes of Volkswagen and Porsche have underscored the heavy influence of U.S. banks over their European rivals, but some EU-based advisers said they were already seeing greater numbers of local banks hired on deals. Fear by U.S. firms that finance could become a weapon in the trade war is also shared by allies in Europe, where allies worry access to credit cards and the provision of dollars to their banks could be curtailed. Companies and banks are considering the tail risk that the U.S. could pull U.S. dollar funding lines, in a move that could put the European financial system in jeopardy, one of the people said. Reuters reported last month that some European officials are questioning whether they can still rely on the U.S. Federal Reserve to provide dollar funding in times of market stress. "For Europeans, it's whether they would prefer national champions," one of the people said. The world is nationalizing and there are some political risks seen with U.S. banks." European investment banks have smaller balance sheets and aren't as deep pocketed as their U.S. peers. "You see this undifferentiated anti-Americanism, but it just doesn't hold for very long. These emotional moments will give way to companies going back to their rational economic interests," one of the financial executives added. Samuel Gregg, political economist at the American Institute for Economic Research, said placing restrictions on U.S. financial services operating in the UK and the EU would be an act of self-harm for Europe. "It would be a huge leap for Europe to try and fill the yawning gap that would ensue from placing restrictions on U.S. financial services. The same restrictions would also add to the damage upon European economies likely to flow from U.S. tariff increases," Gregg said.
Yahoo
09-04-2025
- Business
- Yahoo
Wall Street bosses fear anti-American backlash as Trump's trade war intensifies
By Lananh Nguyen and Sinead Cruise NEW YORK/LONDON (Reuters) - Wall Street bosses are girding for Europe to sideline American investment banks in response to the tariff war unleashed by U.S. President Donald Trump, fearing client boycotts and in a worst-case scenario, even formal restrictions. More than half a dozen senior bankers and advisers told Reuters they are bracing for European Union governments and companies to do more business with home lenders, which could quickly dent their market share. Two bank industry groups have discussed how Europe could act to restrict U.S. banks' activities in the region, two people said, and at least two major banks have also held internal talks on the matter, according to two senior executives. All requested anonymity because the discussions are private. One such tool at the EU's disposal is the Anti-Coercion Instrument (ACI), conceived in 2021 amid rising concerns at the time about the weaponization of trade by the U.S. and China. The ACI enables the bloc to place restrictions on foreign financial services companies, limiting their access to EU markets. Meanwhile, in a sign of possible anti-U.S. sentiment, French President Emmanuel Macron called for European companies to suspend planned investment in the United States following Trump's sweeping tariffs. JPMorgan CEO Jamie Dimon, asked if he was seeing any anti-American sentiment among clients in an interview with Fox Business' "Mornings with Maria" on Wednesday, said: "We've lost a couple of bond deals simply say that, you know, we'd rather just do this with a local bank than with a U.S. bank." EU countries on Wednesday approved the bloc's first countermeasures against the United States, joining China and Canada in retaliatory moves that could tip the world into recession. Following those announcements, Trump said he would temporarily lower new tariffs on many countries, even as he raised them further on imports from China. More measures could be on the way. EU Trade Commissioner Maros Sefcovic said on Monday the EU was ready to consider all retaliatory options. "We are prepared to use every tool to protect (the) single market," he said. Meanwhile, officials at the European Central Bank said they were fully mobilized to ensure the euro zone economy remained stable and well financed. Disentangling U.S. banks from the European financial system wouldn't be an easy task. While they account for only a very small portion of the region's loans and deposits, Wall Street firms dominate parts of securities trading, including derivatives. U.S. lenders have invested heavily in European businesses since the 2008 financial crisis, and even more so after Brexit. When Britain left the EU, Brussels demanded Wall Street banks bolster their EU outposts with additional capital and local staff, leading to thousands of jobs being created. While the U.S. banks don't provide a geographical breakdown of their earnings, they do provide a window into the size of the business. For example, Germany, the United Kingdom and France are JPMorgan's first, second and fourth-largest country exposures outside the U.S., respectively. The U.S. firm earned the biggest share of investment banking fees in the region during the first quarter of 2025, or about $514 million for 8.2% share of the total fee pool, LSEG data shows. Still, Europe can draw on its experience overcoming the complexities of Brexit, when it untangled a major partner from the bloc, another person familiar with the matter said. Restrictions on Wall Street firms could be partial, for example, the person added. ERODING ADVANTAGE "The advantage of the U.S. banks is eroding," said a senior financial executive, who declined to be identified discussing the policies. In securities trading, clients are debating whether they should switch to European counterparties from U.S. banks, another of the sources said, adding that this has never been discussed before. Recent dealmaking for the likes of Volkswagen and Porsche have underscored the heavy influence of U.S. banks over their European rivals, but some EU-based advisers said they were already seeing greater numbers of local banks hired on deals. Fear by U.S. firms that finance could become a weapon in the trade war is also shared by allies in Europe, where allies worry access to credit cards and the provision of dollars to their banks could be curtailed. Companies and banks are considering the tail risk that the U.S. could pull U.S. dollar funding lines, in a move that could put the European financial system in jeopardy, one of the people said. Reuters reported last month that some European officials are questioning whether they can still rely on the U.S. Federal Reserve to provide dollar funding in times of market stress. "For Europeans, it's whether they would prefer national champions," one of the people said. The world is nationalizing and there are some political risks seen with U.S. banks."European investment banks have smaller balance sheets and aren't as deep pocketed as their U.S. peers. "You see this undifferentiated anti-Americanism, but it just doesn't hold for very long. These emotional moments will give way to companies going back to their rational economic interests," one of the financial executives added. Samuel Gregg, political economist at the American Institute for Economic Research, said placing restrictions on U.S. financial services operating in the UK and the EU would be an act of self-harm for Europe. "It would be a huge leap for Europe to try and fill the yawning gap that would ensue from placing restrictions on U.S. financial services. The same restrictions would also add to the damage upon European economies likely to flow from U.S. tariff increases," Gregg said. Sign in to access your portfolio
Euronews
09-04-2025
- Business
- Euronews
Who's who in the EU-US trade war?
ADVERTISEMENT The trade war between the European Union and the United States is heating up. Donald Trump's decision to slap the bloc with a 20% across-the-board tariff has upended deeply intertwined commercial bonds between the two sides of the Atlantic, threatening to dismantle reliable supply chains, hike production costs, fuel inflation, wreck profitable businesses and wipe off untold value in imports and exports. The tariffs, which Washington has described as "reciprocal" but which Brussels has called "neither credible nor justified" , are seen as a forceful attempt to unilaterally redesign the multilateral economic order established after World War II – the same order that the EU has consistently defended and promoted through numerous trade deals. With billions at risk of obliteration, the EU is doubling down on the need to find a negotiated solution, while keeping its cards close to its chest in case of retaliation. These are the main characters in the trade war. Ursula von der Leyen: the one at the top Ursula von der Leyen. European Union, 2025. Ursula von der Leyen has firmly positioned herself on the frontline of the trade war. The reason is self-evident: the European Commission she leads has exclusive competence to determine the commercial policy of the 27-country bloc, giving her a vast margin of manoeuvre to decide how to react to Trump's disruptive tariffs. A staunch defender of transatlantic ties, von der Leyen has already made an offer to bring down the heat: a "zero-for-zero" deal to remove all tariffs on industrial goods. "Europe is always ready for a good deal. So we keep it on the table," the Commission president said on Monday. "But we are also prepared to respond through countermeasures and defend our interests." Should the tit-for-tat escalate, it will ultimately be up to von der Leyen to decide which areas of the American economy will be hit and which will be spared. She will also have the final say on whether or not to trigger the Anti-Coercion Instrument (ACI), which the Commission has never used since its introduction in 2023. Von der Leyen faces a significant daunting challenge, however: communication channels. She has not spoken with Trump since a congratulatory call after his electoral victory. Maroš Šefčovič: the all-smiles envoy Maroš Šefčovič. European Union, 2025. Little did Maroš Šefčovič know after his unexpected appointment as European Commissioner for Trade that he would soon be navigating an all-out trade war. The 58-year-old Slovak, known in Brussels for his flashy smile and colourful ties, has the powerful – albeit, in this case, unenviable – task of managing the bloc's trade relations, making him the go-to person after President von der Leyen herself. Šefčovič has travelled twice to Washington DC and held several phone calls with his American counterparts (more about them later) in a bid to get a better understanding of what the Trump administration's endgame might actually be. So far, he has come back completely empty-handed, an ominous sign for the negotiations ahead. "Let's be clear: engaging the US will take both time and effort," Šefčovič cautioned after a meeting of trade ministers in Luxembourg. "The US views tariffs not as a tactical step but as a corrective measure. We are fully prepared to sit at the negotiation table whenever our American partners are ready." ADVERTISEMENT Beneath the smile Šefčovič brings considerable negotiating experience to the table following his role as the key point man for the EU executive in its labyrinthine wrangling with the UK over Brexit. Bjoern Seibert: the shadow operator Bjoern Seibert. European Union, 2024. Only those deep into the EU bubble know the name of Bjoern Seibert . The soft-spoken, bespectacled chef de cabinet of Ursula von der Leyen has often been referred to as an éminence grise , a power broker who wields an oversized influence quietly in the shadows. Seibert proved instrumental in reinforcing EU-US ties by developing close contacts with key people in the Joe Biden administration. But that invaluable network evaporated overnight when Trump and his team took over the White House, forcing Seibert to start from scratch. Von der Leyen's aide-de-camp joined Šefčovič on his latest Washington trip, a sign of how deeply involved he is in the process. Before that, he travelled to the American capital on his own to meet members of Trump's National Security Council and the National Economic Council. ADVERTISEMENT The German is in regular touch with ambassadors in Brussels to ensure member states are duly informed and, crucially, on board with the Commission's initiatives. He is supported by Tomas Baert , von der Leyen's trade advisor. Sabine Weyand: the consummate insider Sabine Weyand. European Union, 2022. While von der Leyen, Šefčovič and Seibert operate at the highest political level, there are hundreds of well-versed, battle-tested experts in Brussels working on trade at a technical level, patiently going through the nitty gritty to find American imports that can be slapped with counter-tariffs. Among these, Sabine Weyand stands out from the crowd. A long-serving Commission official, Weyand leads the mighty Directorate General for Trade (DG Trade) and has a panoramic, privileged view of all commercial decisions involving goods, services, intellectual property and foreign investments. Under von der Leyen's command, DG Trade has expanded its arsenal of trade defence measures, making the department more reactive and assertive. Weyand's credentials will come in handy for the trade war: she was the EU's deputy chief negotiator for Brexit and spearheaded the conclusion of several free-trade deals, including the EU-Mercosur agreement, which brings together 780 million consumers. ADVERTISEMENT EU leaders: the perpetually divided The leaders of Greece, Italy and the Netherlands during an EU summit. European Union, 2025. The European Commission might have exclusive competence over trade but that does not necessarily mean it can go solo, close its eyes and hope for the best. With the stakes reaching the stratosphere, von der Leyen will have to secure the buy-in from member states to ensure a united, coherent front against the White House. After all, the tariffs are expected to be highly damaging to national economies, so speaking directly with EU leaders is indispensable to understanding and managing the tit-for-tat. But leaders, in classic fashion, are divided on how to proceed. Some, like French President Emmanuel Macron , want to go all-out and deploy the most hard-hitting options. Others, like Italian Prime Minister Giorgia Meloni, advocate a measured approach to focus on negotiations rather than immediate retaliation. Behind the scenes, leaders are lobbying von der Leyen to spare sensitive and lucrative sectors. How the debate plays out will determine what happens next: the Commission's countermeasures can be blocked with a qualified majority of member states. ADVERTISEMENT Donald Trump: the disrupter-in-chief Donald Trump. Mark Schiefelbein/Copyright 2025 The AP. All rights reserved. The image of Donald Trump revealing his self-styled "reciprocal tariffs" on a large chart has quickly become iconic – or controversial, depending on where you're from. Tariffs were a rallying cry during Trump's anything-goes campaign and are now a central element of his second presidency, which in less than three months has proven extremely disruptive for virtually every corner of international relations. The president has repeatedly evoked the prosperity of America's Gilded Age to justify the imposition of the punishing duties, portraying his unprecedented initiative as the only possible way to rebalance the country's trade deficits. Not even the loud complaints from investors, many of whom backed his re-election, have weakened his resolve. According to the White House, the tariffs will remain in place until the president concludes "the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved or mitigated." The condition leaves it entirely to Trump's discretion to decide, case by case, the longevity of the measures. ADVERTISEMENT Von der Leyen has her work cut out for her: Trump has attacked the EU as a "monopoly" that was formed as a "unified force" against America. He has already rejected her offer for a "zero-for-zero" tariff deal, calling instead on the bloc to increase purchases of American energy and make the trade deficit disappear "in one week". "The EU has been very tough over the years. It was – I always say it was formed to really do damage to the United States in trade," Trump said. "It's not going to be that way. It's got to be fair and reciprocal. It's gotta be fair. It's not fair." JD Vance: the angry cheerleader JD Vance. Jose Luis Magana/AP For Europe, JD Vance has become a synonym for angry speeches. Since taking office, the US Vice President has ferociously denounced the EU for its digital regulations , migration policy, defence spending and supposed lack of free speech . His clash with Volodymyr Zelenskyy in the Oval Office caused consternation and triggered an outpouring of solidarity from EU leaders towards the Ukrainian president. ADVERTISEMENT Most recently, Vance has taken a cheerleading role to defend Trump's tariffs against its numerous critics. In an interview with Fox News, the Vice President admitted the duties were a "big change" and their purported benefits would take time to arrive. "What I'd ask folks to appreciate here is that we're not going to fix things overnight," he said. With Vance taking a hands-on role in the White House's decision-making – Trump has tasked him with securing a new buyer for TikTok – the EU might have no choice but to deal directly with the man that has publicly berated the bloc. Interestingly, as CNN reports , Vance used to oppose trade protectionism. Howard Lutnick and Jamieson Greer: the counterparts Howard Lutnick (left) and Jamieson Greer (rigth). Associated Press. Who do you call when you want to call the United States? ADVERTISEMENT If the call is on trade, the most obvious answer would be Howard Lutnick , the US Secretary of Commerce, and Jamieson Greer , the US Trade Representative. These are the two people that Maroš Šefčovič has been talking to in recent weeks, trying, without success, to find a workable compromise. While Greer keeps a low profile, Lutnick seeks the spotlight. The Commerce Secretary, a billionaire and former CEO of Cantor Fitzgerald, is a regular presence on news shows, where he delivers provocative lines in a Trumpian fashion. He shares an ideological approach to tariffs similar to that of the president, going as far as saying they would be "worth it" even if they led to a recession. Like Trump, Lutnick has taken exception to the trade deficit the US has with the EU. ADVERTISEMENT "The European Union won't take chicken from America. They won't take lobsters from America. They hate our beef because our beef is beautiful and theirs is weak," Lutnick said last week. "It's unbelievable." Peter Navarro: the tariff evangelist Peter Navarro. Ben Curtis/Copyright 2025 The AP. All rights reserved The fact that Šefčovič held several fruitless meetings and phone calls with Lutnick and Greer has prompted an awkward question: is he talking to the people calling the shots? One of these people is Peter Navarro , a Trump loyalist who spent four months in prison after being held in contempt of Congress over the January 6 investigation. With an economic doctorate from Harvard University, Navarro has been an ardent critic of free-trade deals and a fierce proponent of tariffs as a solution to trade deficits. He approaches the economy through the lens of national security and has written various books detailing his hawkish views on China. In 2019, it was revealed that Navarro had invented the character "Ron Vara" to quote himself in his book Death by China . ADVERTISEMENT He now serves as Trump's senior counsellor for trade and manufacturing. In an op-ed for the Financial Times, Navarro castigated foreign nations for their "barrage of non-tariff weapons," like value-added tax (VAT), currency manipulation and product standards, which he says "strangle" US exports. The 75-year-old singled out the EU for what he called "the use of lawfare" to target America's Big Tech companies . "The US will now match the substantially higher tariffs and crushing non-tariff barriers imposed on us by other nations," Navarro wrote. "This is not a negotiation. For the US, it is a national emergency triggered by trade deficits caused by a rigged system." The White House: an intricate inner circle Donald Trump with members of his cabinet. Evelyn Hockstein/AP There are many roads leading to Trump. ADVERTISEMENT The president's economic team also features Scott Bessent , the Secretary of the Treasury; Kevin Hassett , the director of the National Economic Council, who is Seibert's counterpart; and Stephen Miran , the chair of the Council of Economic Advisers. Bessent, a Yale-educated hedge fund manager, is seen as one of the most moderate characters in the White House and has urged countries to negotiate with Trump to bring down the level of the tariffs, which he says are now at "maximum". "President Trump is going to be personally involved in these negotiations, and he believes, as many of us do, that there's been an unfair playing field, so the negotiations are going to be tough," Bessent told Fox News. Closer to the president is Susie Wiles , his media-shy chief of staff and gatekeeper; Stephen Miller , the deputy chief of staff and the architect of Trump's hardline migration policy; and his family members, including Donald Trump Jr , Eric Trump and his wife Lara Trump . ADVERTISEMENT And of course, there is Elon Musk , the CEO of Tesla and X, who has been given a mighty non-Cabinet position in the administration to slash the federal budget. Notably, Musk has not embraced tariffs with the same fervour as Trump's inner circle. The mercurial billionaire has publicly lashed out against Navarro, calling him a "truly moron", and endorsed the idea of a "zero-tariff zone situation" between the US and the EU.
