Latest news with #U.S.TradeAct
Time of India
30-05-2025
- Business
- Time of India
EU gains leverage in trade talks as US court casts doubt on tariffs, EU officials say
The European Union has gained leverage in trade talks with the United States after a U.S. court cast doubt on the legality of Washington's "reciprocal" tariffs, EU officials said on Friday. A U.S. federal appeals court temporarily reinstated President Donald Trump's tariffs on Thursday, a day after a U.S. trade court ruled that Trump had exceeded his authority in imposing the duties and ordered an immediate block on them. "The uncertainty as to the legality of the 'reciprocal' tariffs certainly gives us extra leverage," one EU official close to the talks said. "The talks will continue, as formally we still look for zero-for-zero tariffs." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Tìm hiểu thêm If the court system ultimately rules against Trump's use of the IEEPA emergency act, the administration could make use of other provisions in the U.S. Trade Act such as Section 301, which has been broadly used with China. "You'd need to establish 'injury' and a legal basis and it takes months. Administratively, they might still do a hatchet job ... given checks and balances are not that strong in the U.S. right now but it won't be as easy or done as quickly as IEEPA," Niclas Poitiers, research fellow at EU Brussels think tank Bruegel, told Reuters Live Events "It would at least buy the EU some time." The EU was willing to discuss some non-trade barriers with the U.S., EU officials said, but would not touch the EU's taxation system -- such as the value added tax or digital tax -- or food safety standards. The EU officials said the uncertainty created by the court rulings and the Trump administration's tariff policy had a positive aspect for Europe, which was seen by markets as an oasis of stability in comparison. "This is the watchword: uncertainty. It is impossible to know what the status of the tariffs will be next week, not to mention next month," one of the EU officials said. "If you want sane, stable, even boring, rules-based order and predictable business environment, Europe is the place for you." Meanwhile, some European companies, worried over the uncertainty and possible major hits to their business, are holding their own talks with U.S. authorities. Volkswagen CEO Oliver Blume said his company was holding "fair" and "constructive" talks with the U.S. government on tariffs and wanted to make further investments in the country. The European Commission conducts all trade negotiations on behalf of the 27-nation bloc and companies, or even individual EU countries, cannot legally get a deal outside that framework. "Now it looks like we're not in the most damaging economic scenario ... but it still maintains the uncertainty and maybe increases it because there is a new player that people have not taken into account so far - the courts," Poitiers at Bruegel said. EU-US TRADE TALKS The European Commission would not comment on the U.S. court rulings because they were internal U.S. procedures. But it said trade talks between Brussels and Washington would continue, with Europe sticking to its offer of mutual zero tariffs on industrial goods. "There's no change in our approach, we proceed as planned with both technical and political meetings next week," a Commission spokesperson said. EU Trade Commissioner Maros Sefcovic in a post on the X social media platform said he held a phone call with U.S. Commerce Secretary Howard Lutnick on Friday. "Our time and effort fully invested, as delivering forward-looking solutions remains a top EU priority. Staying in permanent contact," Sefcovic said on X. More trade talks between the U.S. and the EU are scheduled for next week, on the sidelines of the OECD Ministerial Council Meeting in Paris on June 3-4. The EU officials said the U.S. courts' rulings validated the EU view that the sweeping "reciprocal" tariffs, imposed on all goods from the EU and many other countries around the world on April 2, were unjustified. They also said that while U.S. courts did not question Washington's 25% tariffs imposed on European steel, aluminium and cars, the rulings could also play a role in the EU's efforts to get those tariffs lowered or removed.
Yahoo
04-04-2025
- Business
- Yahoo
Pharma stocks survive market rout on tariff exemption, but uncertainty continues
By Maggie Fick and Kashish Tandon LONDON/BENGALURU (Reuters) - Drugmaker stocks gained a temporary reprieve on Thursday as U.S. President Donald Trump spared pharmaceutical products from reciprocal tariffs, but executives and analysts warned it was premature to celebrate as tariffs were still likely to come. Trump imposed a 10% tariff on most U.S. imports, as well as much higher levies on dozens of rivals and allies alike, but temporarily exempted some goods, including pharmaceuticals, benefiting major exporters including India, Japan and Ireland. Shares of U.S. drugmakers AbbVie and Johnson & Johnson rose about 2%, defying the broader market drop. Across continents, shares of Indian and European drugmakers rose, in a sign of relief that pharmaceutical products for now remained out of the crosshairs of the trade wars. A U.S. official said on Wednesday the president plans separate tariffs targeting the pharma sector. Trump in his White House Rose Garden announcement once again namechecked the industry, predicting that pharma companies will come "roaring back" to the U.S, and warning if they don't, "they got a big tax to pay". "The administration has reinforced the need to maintain robust and resilient domestic manufacturing capacity in pharmaceuticals," Stephen Farrelly, global pharma & healthcare lead at ING. "So it is being highlighted as a sector they needs to reshore." WORRIES PERSIST Many in the industry predicted the recent uncertainty over tariffs would continue to cast a shadow over drugmakers. "The only thing that feels certain is more uncertainty," Barclays analyst Emily Field told Reuters. One source at a European drugmaker said the sense on pharma sector tariffs was: "It's not today, but it's coming." Trump's executive order listed pharmaceuticals alongside lumber, semiconductors and other sectors that could be subject to investigation under Section 232 of the 1962 U.S. Trade Act. U.S. manufacturing costs for pharma companies will rise as country-specific tariffs will affect key supplies such as organic chemicals and glassware used to make pharma products, Bernstein analysts said in a note. They calculated an additional $45 billion of import cost risk to the pharma industry. Jefferies analysts said Biogen and Amgen were among the drugmakers with most ex-U.S. exposure, while UBS pointed to AbbVie and Merck having significant overseas manufacturing. Medical devices and diagnostics equipment did not appear to be exempted, and shares in companies including GE Healthcare and DexCom fell about 6%. Medical device industry group AdvaMed said the tariffs would likely lead to cuts in research and development spending and threatened the U.S. position as a leader of innovation in the medtech sector. Sign in to access your portfolio
Yahoo
24-02-2025
- Business
- Yahoo
Unions to Trump: ‘The Time to Act is Now' on Chinese Shipbuilding Sanctions
The heads of four labor unions called on President Donald Trump to hasten U.S. shipbuilding initiatives and sanction China for what the U.S. Trade Representative called an 'unreasonable' dominance of the maritime and shipbuilding sectors. In the letter sent last week, the union heads urged Trump to 'impose tough penalties against vessels built according to the plans, policies and actions of the Chinese Communist Party and to adopt complementary policies that rebuild America's shipbuilding capacity and workforce.' More from Sourcing Journal Byte-Sized AI: GXO's Humanoid Robotics Partner Bags $350M, Turkish Supplier Uses AI to Detect Defects 'A Direct Attack on USPS Employees': Unions Slam Reports of Trump Takeover Trucking Firm TFI International to Relocate from Canada to the US The presidents of the United Steelworkers, International Brotherhood of Electrical Workers, International Brotherhood of Boilermakers and International Association of Machinists and Aerospace Workers signed off on the joint letter, arguing that China's methods for growing its shipbuilding industry undermine American economic and national security. Those unions, alongside the AFL-CIO's Maritime Trade Department, filed a formal complaint in March 2024 under the U.S. Trade Act, and were successful in getting the Trade Representative's office to launch a formal investigation into the practices. At the conclusion of the nearly nine-month probe, the USTR determined that China's practices were 'actionable' under U.S. Section 301 trade laws. The Section 301 violation enabled both President Trump and President Joe Biden to penalize China by imposing tariffs on billions of dollars' worth of U.S. imports since 2018. The USTR report indicated that China's targeting of the maritime, logistics and shipbuilding sectors 'for dominance is enabled by policies that unfairly depress costs or provide advantages.' That report said China displaces foreign firms in existing markets and prevents them from thriving in new markets, namely since they cannot compete with the country's state-owned and -subsidized resources. 'As a shipyard worker myself, out of Bath Iron Works in Maine, I have seen firsthand the crippling impacts of China's predatory actions on our domestic shipbuilding industry,' Brian Bryant, the machinists and aerospace workers union president, said in a separate statement. 'For decades, we've seen everything from layoffs to shipyard closures to atrophy of our domestic shipbuilding industrial base.' While the probe began under the Biden administration, the union presidents told Trump, 'this responsibility is now in the hands of your administration, and the time to act is now.' The letter cited some of the statistics already laid out in their petition to the USTR last year, noting that in 2023 the U.S. produced fewer than 10 oceangoing commercial vessels while the PRC produced over 1,000. In 2024, 71 percent of the world's ship orders went to China's shipyards. According to the USTR report, China's shipbuilding market share increased from less than 5 percent of global tonnage in 1999 to more than 50 percent in 2023. It controls production of 95 percent of the world's shipping containers and 86 percent of the supply of intermodal chassis. 'Due to their unfair trade action, tens of thousands of U.S. jobs have been lost,' the letter said. 'China has more than 5,500 flagged oceangoing merchant vessels while the U.S. has fewer than 80. The ability to produce vessels for commercial use has been slashed and the impact on our military shipbuilding capabilities has been significant. These numbers are staggering, and they demand action.' As concerns over this gap emerge in D.C., four lawmakers introduced bipartisan legislation called the SHIPS for America Act in December to jumpstart national shipbuilding, cut reliance on foreign vessels and place more China-to-U.S. cargo on American vessels. Within 15 years of that bill's passing, 10 percent of all cargo imported into the U.S. from China would have to be imported on U.S.-flagged vessels that are also built in the U.S. and staffed by American crews. President Trump has acknowledged the concern in recent interviews. 'We don't build ships anymore,' Trump told conservative radio talk show host Hugh Hewitt last month. 'We want to get that started. And maybe we'll use allies, also, in terms of building ships. We might have to.' In January, Sen. Tammy Baldwin (D-Wisc.) said she would push for the Trump administration to crack down on China's dominance through 'targeted tariff tools' and by applying port fees to Chinese-built vessels. On Friday, the USTR followed this up by proposing to impose certain fees and restrictions on international maritime transport services related to Chinese ship operators and Chinese-built ships. The office also opened up comments from the public on the proposed Section 301 actions, and will host a public hearing about the suggestions on March 24. According to the USTR's proposal, a Chinese-operated vessel would either pay up to a $1 million service fee per vessel calling at a U.S. port, or pay up to $1,000 per net ton of the ship's capacity. Any vessel operator calling a U.S. port with a Chinese-built ship would have to pay up to $1.5 million per port call depending on the percentage of Chinese-built vessels they have in their fleetAdditionally, vessel operators will be charged up to $1 million per port call if more than 50 percent of their newbuilding orders are with Chinese shipyards. Aside from possible impacts from the current probe, Trump has extended Section 301 actions by placing a 10-percent additional tariff on all China-made goods. While no port fees have been established yet, the U.S. Department of Defense designated China's largest container shipping firm, Cosco Shipping, as a Chinese military company.
Yahoo
19-02-2025
- Business
- Yahoo
Labor unions call on Trump to boost US shipbuilding against increasing Chinese dominance
WASHINGTON (AP) — The heads of four major labor unions on Wednesday called on President Donald Trump to boost American shipbuilding and enforce tariffs and other 'strong penalties' against China for its increasing dominance in that sphere. The presidents of the United Steelworkers, International Brotherhood of Electrical Workers, International Brotherhood of Boilermakers and International Association of Machinists and Aerospace Workers argue that China's efforts have hurt American workers and national security. In the letter obtained by The Associated Press, they urged Trump to 'impose tough penalties against vessels built according to the plans, policies, and actions of the Chinese Communist Party and to adopt complementary policies that rebuild America's shipbuilding capacity and workforce.' See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. Last year under President Joe Biden, the unions filed a petition seeking to address China's shipbuilding under Section 301 of the 1974 U.S. Trade Act, hoping to start a process by which tariffs and other measures could be enacted. The letter notes China manufactured more than 1,000 ocean-going vessels in 2023, while the United States made fewer than 10 ships. It adds that the Chinese shipbuilding industry received more than $100 billion in government support from 2010 to 2018, such that Chinese shipyards accounted for the majority of worldwide orders last year. 'As a shipyard worker myself, out of Bath Iron Works in Maine, I have seen firsthand the crippling impacts of China's predatory actions on our domestic shipbuilding industry,' Brian Bryant, the machinists and aerospace workers union president, said in a separate statement. 'For decades, we've seen everything from layoffs to shipyard closures to atrophy of our domestic shipbuilding industrial base. Trump has made control of the Panama Canal and resetting the global terms of trade with tariffs a key priority. But many of his concerns have been directed at U.S. allies such as Canada, Mexico and the European Union, while he has imposed an additional 10% tariff on imports from China due to its role in making the opioid fentanyl. The White House has said it is considering all available options to push back against China's practices in the maritime, logistics and shipbuilding sectors. In January, Trump floated the possibility of more shipbuilding in an interview with Hugh Hewitt, the conservative radio talk show host. 'We don't build ships anymore," Trump said. "We want to get that started. And maybe we'll use allies, also, in terms of building ships. We might have to.' In a Fox News Channel interview that aired Tuesday night, Trump noted the decline in American shipbuilding and indicated he wanted that to change. 'We don't build the way we used to build. Yeah, we used to build like a ship a day, and now to build a ship is like a big deal,' he said. 'And we're going to get this country back on track.' ___
The Hill
19-02-2025
- Business
- The Hill
Labor unions call on Trump to boost US shipbuilding against increasing Chinese dominance
WASHINGTON (AP) — The heads of four major labor unions on Wednesday called on President Donald Trump to boost American shipbuilding and enforce tariffs and other 'strong penalties' against China for its increasing dominance in that sphere. The presidents of the United Steelworkers, International Brotherhood of Electrical Workers, International Brotherhood of Boilermakers and International Association of Machinists and Aerospace Workers argue that China's efforts have hurt American workers and national security. In a draft of the letter obtained by The Associated Press, they urged Trump to 'impose tough penalties against vessels built according to the plans, policies, and actions of the Chinese Communist Party and to adopt complementary policies that rebuild America's shipbuilding capacity and workforce.' Last year under President Joe Biden, the unions filed a petition seeking to address China's shipbuilding under Section 301 of the 1974 U.S. Trade Act, hoping to start a process by which tariffs and other measures could be enacted. The letter notes China manufactured more than 1,000 ocean-going vessels in 2023, while the United States made fewer than 10 ships. It adds that the Chinese shipbuilding industry received more than $100 billion in government support from 2010 to 2018, such that Chinese shipyards accounted for the majority of worldwide orders last year. Trump has made control of the Panama Canal and resetting the global terms of trade with tariffs a key priority. But many of his concerns have been directed at U.S. allies such as Canada, Mexico and the European Union, while he has imposed an additional 10% tariff on imports from China due to its role in making the opioid fentanyl. In January, Trump floated the possibility of more shipbuilding in an interview with Hugh Hewitt, the conservative radio talk show host. 'We don't build ships anymore,' Trump said. 'We want to get that started. And maybe we'll use allies, also, in terms of building ships. We might have to.' In a Fox News Channel interview that aired Tuesday night, Trump noted the decline in American shipbuilding and indicated he wanted that to change. 'We don't build the way we used to build. Yeah, we used to build like a ship a day, and now to build a ship is like a big deal,' he said. 'And we're going to get this country back on track.'
