US companies join forces in a business coalition to fight Trump’s tariffs. More than 60 business groups participate in the attempt to combat US President’s protectionism policy.
Trade concerns are increasing as the threats for tit-for-tat tariffs by Washington and Beijing on each other’s products are growing. Trade uncertainty prevails in the markets.
The world’s two largest economies have already imposed tariffs to $50 billion of each other’s goods since July. On Friday, President Trump threatened new tariffs on virtually all Chinese imports into the United States, i.e. duties on $267 billion of goods. China is ready to respond accordingly with counter-tariffs.
The head of China’s market regulator said on Friday that a trade war does not benefit China or the United States. Following these comments, the US companies are added to those who support that this trade policy will lead nowhere.
Business groups have been lobbying since the beginning of the escalation of the trade war. Further, trade associations representing farmers, retailers and manufacturers launch a new multi-million-dollar campaign to oppose tariffs.
JUNCKER: “The euro should be better promoted as a world currency”
In his presentation of his annual program to the European Parliament in Strasbourg, the European Commission president called for the EU to promote the euro as a global currency to challenge the U.S. dollar.
He also announced Commission’s trade plans such as the completion of an EU trade pact with Japan by May. In addition, he expressed EU’s desire for launching a new trade relationship with Africa. Finally, he renewed the promise of close trade and security ties with Britain after Brexit. However, he underlined that EU would not compromise on key withdrawal terms.
Forex Market and US Companies against tariffs
The Dollar traded mostly flat against its major traded rivals. Forex markets remain nervous amid the US-Sino Trade spat.
The Australian Dollar dropped 0.3% close to a 2-1/2 low as trade uncertainty between the States and China is general. The Aussie, often seen as a liquid proxy of China-related trades, is vulnerable to the respective trade concerns.
The Euro dropped 0.1% during the early trading following weak euro zone production data and ahead of ECB’s policy meeting tomorrow.
The Sterling traded flat following Juncker’ s renewal of the promise that EU will retain close trade and security ties with Britain after Brexit.
Oil prices soar US inventories decreased and Iran sanctions loom. Brent crude futures were down 23 cents a barrel, after hovering close 80$ a barrel. U.S. crude futures rose by 35 cents from their last close.
Sources: Reuters, CNN money, BBC
PLEASE NOTE The information above is not investment advice.