Latest news with #Europe-to-US
CNBC
23-05-2025
- Business
- CNBC
How big European Union tariff could backfire on Trump, according to trade, freight experts
President Trump's social media tariffs threats against Apple and the European Union reflect a worrying issue for the markets and economy, according to trade experts and logistics experts: the negotiating process isn't going the way Trump wants. "Trump is not wrong that the EU has been less forthcoming than other countries, but the EU also has good reason to be reluctant to engage in this kind of exercise, and so they are at an impasse," said Josh Teitelbaum, senior counsel of Akin. "Trump's frustration reflects that underlying dynamic," he said. Apple, threatened by Trump on Friday with a 25% tariff on any iPhone not made in the U.S., is in a difficult spot, Akin said, as the broader investigation launched by the Trump administration on national security threats linked to key technology, and imports of semiconductors and derivative products, could put iPhones under its umbrella. "He has a mechanism to make good on this threat," Akin said. But with Europe, the tariff runs the risk of adding damage to a key trade relationship which had been showing signs of recovery. Ocean freight bookings tracked by SONAR show after a drop in bookings from the EU to the U.S., ocean freight bookings have steadily recovered. The fear is the new threat will slow down freight orders again. Andy Abbott, CEO of Atlantic Container Line, an ocean carrier that specializes in the Europe-to-US trade, said that has significant implications for core U.S. industrial operations. Unlike Asia, which is primarily a supplier of consumer products to the U.S., Europe is mostly a source of industrial products that help American manufacturers produce. "Europe was stable and steady," said Abbott. "A big tariff on European imports will backfire, making American products more expensive to produce," he said. Manufacturers have stressed to the Trump administration in talks that any tariffs need to take into account the cost of running and expanding operations in the U.S., and the administration's policy may run counter to the reshoring aim. In addition, U.S. exporters will suffer as a result of reduced trade. Container rates to Europe are only one-third of U.S. import container freight rates, so a reduction of European imports will raise U.S. export rates, adding more cost to American products overseas, Abbott said. "The EU is a significant trading partner, and a 50% tariff would potentially cause economic harm and the EU could retaliate, which would further escalate the economic harm," said Timothy Brightbill, partner at Wiley and co-chair of its international trade practice. "It's a dangerous situation." According to Dan Anthony, president at Trade Partnership Worldwide, the impact would vary across the U.S., but would be felt state to state. "Needless to say, a 50% tariff would be a huge, costly tax increase," Anthony wrote in a LinkedIn post. According to his organization's data, tariffs paid at the state level last year range from a low of 0.23% (Indiana) to a high of 2.36% (New Jersey) based on the types of products imported. "Implementing a 50% tariff represents an effective rate increase of 20-200x depending on the state," he said. Brightbill said the EU has a significant number of trade barriers, and this trade negotiation could provide an opportunity for both agricultural and digital trade. "There are many long-standing trade problems with the EU, for years and years, and I think that is why the administration wants the EU to come to the table," Brightbill said. But he added that doesn't ensure the EU responds in the way Trump is looking for. "There are a lot of countries and a lot of varying degrees of views on whether to negotiate in the first place, so, it will be very difficult to reach a consensus," he said.
Yahoo
10-04-2025
- Automotive
- Yahoo
Michelin sees first-quarter sales below consensus due to higher seasonality
(Reuters) - Michelin expects its first-quarter sales to be slightly below market consensus due to steeper than expected seasonality in the first half of 2025, according to the transcript of an investor call held late on Wednesday. The French tyre maker said that U.S.-imposed tariffs would add to volatility in the market, but its local-to-local strategy would prove valuable in dealing with them. WHY IT'S IMPORTANT Michelin employs more than 23,500 people in its production sites across the U.S. and Canada. It has two plants in Mexico - Queretaro and Leon - and three in Canada - Pictou, Bridgewater and Waterville. Analysis of the recent U.S. executive orders still require clarification and no conclusion can be drawn at this stage, Michelin's management said during the call. The North American market, including Mexico, accounted for 38.6% of its total annual sales in 2024. KEY QUOTES "Finished products flows from other regions to the US could be impacted by the 25% tariff that applies to auto and auto parts, yet it is still to be confirmed whether all tires are falling under this tariff." "For Michelin, the main flows are Europe-to-US in Agricultural tires and Indonesia-to-US in Tier 2 Passenger car tires." "As regards retaliation tariffs from non-US countries, the story is just beginning. What we can say is that the USA is a low-exporting country for Michelin, therefore exports from US to Europe and Asia are very limited." "In the current highly volatile context, we will not develop any forward-looking view today, we will keep it for our Q1 sales release later in the month." BY THE NUMBERS Michelin confirmed it expects volumes to drop between 6% and 8% in the first quarter, driven by lower car demand after the end of 2024. Analysts on average were expecting it to report quarterly sales of 6.67 billion euros ($7.33 billion) and a volume drop of 2.6% in a company-provided consensus dated February 17. Concerning U.S. President Donald Trump's tariffs, the group said that 70% of its tyres sold in the United States were manufactured in the country. It also noted that natural rubber was not impacted by any of the recent announcements and that U.S. could be considered self-sufficient for the production of synthetic rubber. Michelin will report first-quarter results on April 24. ($1 = 0.9105 euros)
Reuters
10-04-2025
- Automotive
- Reuters
Michelin sees first-quarter sales below consensus due to higher seasonality
April 10 (Reuters) - Michelin ( opens new tab expects its first-quarter sales to be slightly below market consensus due to steeper than expected seasonality in the first half of 2025, according to the transcript of an investor call held late on Wednesday. The French tyre maker said that U.S.-imposed tariffs would add to volatility in the market, but its local-to-local strategy would prove valuable in dealing with them. WHY IT'S IMPORTANT Michelin employs more than 23,500 people in its production sites across the U.S. and Canada. It has two plants in Mexico - Queretaro and Leon - and three in Canada - Pictou, Bridgewater and Waterville. Analysis of the recent U.S. executive orders still require clarification and no conclusion can be drawn at this stage, Michelin's management said during the call. The North American market, including Mexico, accounted for 38.6% of its total annual sales in 2024. KEY QUOTES "Finished products flows from other regions to the US could be impacted by the 25% tariff that applies to auto and auto parts, yet it is still to be confirmed whether all tires are falling under this tariff." "For Michelin, the main flows are Europe-to-US in Agricultural tires and Indonesia-to-US in Tier 2 Passenger car tires." "As regards retaliation tariffs from non-US countries, the story is just beginning. What we can say is that the USA is a low-exporting country for Michelin, therefore exports from US to Europe and Asia are very limited." "In the current highly volatile context, we will not develop any forward-looking view today, we will keep it for our Q1 sales release later in the month." BY THE NUMBERS Michelin confirmed it expects volumes to drop between 6% and 8% in the first quarter, driven by lower car demand after the end of 2024. Analysts on average were expecting it to report quarterly sales of 6.67 billion euros ($7.33 billion) and a volume drop of 2.6% in a company-provided consensus dated February 17. Concerning U.S. President Donald Trump's tariffs, the group said that 70% of its tyres sold in the United States were manufactured in the country. It also noted that natural rubber was not impacted by any of the recent announcements and that U.S. could be considered self-sufficient for the production of synthetic rubber. Michelin will report first-quarter results on April 24.
Yahoo
28-03-2025
- Science
- Yahoo
US scientists look to Europe in wake of Trump funding cuts
The age-old Europe-to-US brain drain may be reversing in the wake of President Donald Trump's funding cuts and research restrictions, as US researchers look across the Atlantic for sanctuary. Several major US research institutes face the risk of losing federal funding, and DW noted that 'the uncertainty… is so great that many researchers want to leave': A Nature poll found that 75% of US-based scientists are considering emigrating, likely to Canada or Europe. German institutions are trying to lower the bureaucratic hurdles to hiring them, while research institutes in France are offering positions to American scientists who lost their jobs in the cuts, and academics in Britain are urging their government to do the same.
