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    As Trump Upends Global Trade, Europe Sees an Opportunity

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    President Trump has big ambitions for the global trading system and is using tariffs to try to rip it down and rebuild it. But the European Union is taking action after action to make sure the continent is at the center of whatever world comes next.As one of the globe’s biggest and most open economies, the E.U. has a lot on the line as the rules of trade undergo a once-in-a-generation upheaval. Its companies benefit from sending their cars, pharmaceuticals and machinery overseas. Its consumers benefit from American search engines and foreign fuels.Those high stakes aren’t lost on Europe.Ursula von der Leyen, the president of the European Commission, the E.U.’s executive arm, has spent the past several weeks on calls and in meetings with global leaders. She and her colleagues are wheeling and dealing to deepen existing trade agreements and strike new ones. They are discussing how they can reduce barriers between individual European countries.And they are talking tough on China, trying to make sure that it does not dump cheap metals and chemicals onto the European market as it loses access to American customers because of high Trump tariffs.It’s an explicit strategy, meant to leave the economic superpower stronger and less dependent on an increasingly fickle America. As Ms. von der Leyen and her colleagues regularly point out, the U.S. consumer market is big — but not the be-all-end-all.“The U.S. makes up 13 percent of global goods trade,” Maros Sefcovic, the E.U.’s trade commissioner, said in a recent speech. The goal “is to protect the remaining 87 percent and make sure that the global trade system prevails for the rest of us.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • 163 Shares169 Views

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    The ‘China Shock’ Offers a Lesson. It Isn’t the One Trump Has Learned.

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    When Congress voted to normalize trade relations with China at the beginning of this century, U.S. manufacturers braced for a stream of cheap goods to begin flowing into U.S. ports.Instead, they got a flood. Imports from China nearly tripled from 1999 to 2005, and American factories, with their higher wages and stricter safety standards, couldn’t compete. The “China shock,” as it has come to be known, wiped out millions of jobs in the years that followed, leaving lasting scars on communities from Michigan to Mississippi.To President Trump and his supporters, those job losses are an object lesson in the damage caused by decades of U.S. trade policy — damage he promises that his tariffs will now help to reverse. On Wednesday, he further raised duties on imports from China, well beyond 100 percent, even as he suspended steep tariffs he had imposed on other trading partners.Few economists endorse the idea that the United States should try to bring back manufacturing jobs en masse. Even fewer believe that tariffs would be an effective tool for doing so.But economists who have studied the issue also argue that Mr. Trump misunderstands the nature of the China shock. The real lesson of the episode wasn’t about trade at all, they say — it was about the toll that rapid economic changes can take on workers and communities — and by failing to understand that, Mr. Trump risks repeating the mistakes he claims he has vowed to correct.“For the last 20 years we’ve been hearing about the China shock and how brutal it was and how people can’t adjust,” said Scott Lincicome, a trade economist at the Cato Institute, a libertarian research organization. “And finally, after most places have moved on, now we’re shocking them again.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • 138 Shares149 Views

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    Trump’s Tariff Fight With China Poses New Threat to US Farmers

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    After China unveiled steep retaliatory tariffs on American exports on Wednesday, Treasury Secretary Scott Bessent issued a sharp and somewhat surprising response: “So what?”The question underscored the Trump administration’s argument that America has the upper hand in a trade war with China given how reliant its economy is on exports to the United States.The United States buys far more goods from China than China buys from the United States. But Beijing’s decision to retaliate against President Trump’s punishing tariffs by raising levies on American imports to 84 percent could sting more than Mr. Bessent let on.“American companies that have been selling to China, and have been enormously successful doing that, are not going to be able to do that because of Chinese retaliation,” Sean Stein, the president of the U.S.-China Business Council, said in the hours before Mr. Trump ratcheted up his tariffs again.“Tariffs on the Chinese side and the U.S. side cover everything,” Mr. Stein added, meaning everything from aviation to medical imaging to agriculture would be affected and “trade is going to slow,” he said.The United States exported $143.5 billion of goods to China last year and imported $438.9 billion from that country, according to the Office of the United States Trade Representative.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • 150 Shares109 Views

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    Trump’s Tariffs Could Impact Apparel Companies That Make Clothing in the U.S.

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    On the open 15th floor of a loft building in Midtown Manhattan, about a dozen skilled workers make their way through piles of pants, stitching each piece together with focus and precision. Some of the items are designed by Outlier, a fashion brand that produces its smaller runs and experimental products with the garment district’s ecosystem of contract manufacturers.It’s the kind of work that should get a boost from the stiff tariffs newly imposed on products entering the United States from nearly every other country. But the storeroom where Outlier keeps its fabric tells a more complicated story.The rolls of cloth and boxes of recycled goose down come from Italy and Switzerland, Thailand and New Zealand, countries with specialized industries developed over generations that are unlikely to be recreated in America. Take the linen, made from flax grown in a coastal region stretching from northern France to the Netherlands.“It would take a decade to get a crop growing,” said Tyler Clemens, Outlier’s co-founder. A linen shipment was headed for the cutting room; Mr. Clemens had just gotten the bill from the Department of Homeland Security with a charge labeled “IEEPA-RECIPROCAL,” after the International Emergency Economic Powers Act, one of the laws used to justify President Trump’s tariff measures.A fabric order for Outlier arriving at a factory in Manhattan. The fabric was made in Japan and dyed in Portugal before being shipped to the United States, where it incurred a tariff.Karsten Moran for The New York TimesOutlier’s material comes from abroad, as do some of its finished products. Karsten Moran for The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • 125 Shares99 Views

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    Trump Has Added 145% Tariff to China, White House Clarifies

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    The White House on Thursday clarified that China faced a minimum tariff rate of 145 percent on all imports to the United States.A day earlier, President Trump had said that he was increasing tariffs on China to 125 percent after Beijing retaliated against his previous levies. On Thursday, the White House explained that the 125 percent is on top of a 20 percent tariff the president had previously put on goods coming from China for its role in supplying fentanyl to the United States.That is a drastic increase on a country that supplies much of what Americans buy. China is the second largest source of imports for the United States and the primary global manufacturer of cellphones, toys, computers and other products.The 145 percent figure is also just a floor, not a ceiling. That amount is on top of other pre-existing levies that Mr. Trump already put in place including:25 percent tariffs on steel, aluminum, cars and car partsTariffs of up to 25 percent on certain Chinese goods that Mr. Trump imposed during his first termTariffs of varying ranges on certain products in response to violating U.S. trade rulesThe rapid changes in tariffs have caused significant confusion for importers, many of whom depend on Chinese products, including major retailers as well as small businesses. For an importer bringing in a container of products, the difference between a 125 percent tariff and a 145 percent tariff can amount to thousands of dollars.The Trump administration has exempted goods that were already in transit from the new tariffs, meaning importers have not yet started to incur them. In the case of goods shipped by air, this will happen in the next few days, while goods moving by ship will take several weeks to arrive. More

  • 125 Shares119 Views

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    Trump’s Tariff Reversal Calms Some G.O.P. Nerves, but Questions Linger

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    President Trump’s whipsawing tariff policy has prompted bipartisan alarm on Capitol Hill, where Democrats are outraged and Republicans are caught between their deep opposition to tariffs and fear of criticizing Mr. Trump.The president’s abrupt announcement on Wednesday that he would halt most of his reciprocal tariffs for 90 days just a week after announcing them allayed the immediate concerns of some G.O.P. lawmakers, many of whom rushed to praise Mr. Trump for what they characterized as deal-making mastery.But behind those statements was a deep well of nervousness among Republican lawmakers who are hearing angst from their constituents and donors about the impact of Mr. Trump’s trade moves on the financial markets and the economy. Some of them have begun signing onto measures that would end the tariffs altogether or claw back Congress’s power to block the president from imposing such levies in the future.“I’m just trying to figure out whose throat I get to choke if it’s wrong, and who I put up on a platform and thank them for the novel approach that was successful if they’re right,” Senator Thom Tillis, Republican of North Carolina, said of the sweeping tariffs on Tuesday during a hearing with Jamieson Greer, the Trump administration’s top trade official.On Wednesday, after Mr. Trump pulled back most of the tariffs but retained a 10 percent tariff rate for most countries and announced additional penalties on China, Mr. Tillis still sounded anxious. He said the move was likely to “reduce some of the escalation,” but added that there was still considerable work to be done to prevent another market meltdown.“We’ve got to get a deal before we get rid of uncertainty,” he told reporters soon after Mr. Trump announced the change in a social media post.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • 88 Shares99 Views

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    Trump’s Encouragement of Stock Investors Draws Scrutiny

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    Was the president manipulating the market with his comments, as his critics say, or reassuring Americans, as the White House maintains?President Trump began his Wednesday with some advice for those rattled by his steep tariffs.“BE COOL,” Mr. Trump told his followers on social media after the markets opened. Just a couple of minutes later he wrote, “THIS IS A GREAT TIME TO BUY!!! DJT”Hours after that, Mr. Trump sent the markets soaring when he paused the levies for 90 days. The S&P 500 climbed several percentage points in a matter of minutes and was on its way to its best day since the recovery of the 2008 financial crisis.Soon after Mr. Trump’s pause, Democrats and government ethics experts asked the perhaps obvious question: Did Mr. Trump give the green light to his followers to cash in on a forthcoming rise in stock prices?“How is this not market manipulation?” Representative Mike Levin, Democrat of California, said on social media, referring to action that is potentially illegal. “If you’re a Trump supporter and you did what he said and you bought, then you did great. On the other hand, if you’re a retiree or a senior or somebody in the middle class over the last few days that didn’t have the tolerance for risk and you decided to sell, you got screwed.”The news of Mr. Trump’s pause came as Jamieson Greer, the U.S. trade representative, was testifying on Capitol Hill. Representative Steven Horsford, Democrat of Nevada, pressed him on Mr. Trump’s aim.“It’s not market manipulation,” Mr. Greer said. “We’re trying to reset the global trading system.”“How have you achieved any of that?” Mr. Horsford asked. “So if it’s not market manipulation, what is it? Who’s benefiting? What billionaire just got richer?”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • 138 Shares99 Views

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    After Trump’s Pause on Tariffs, EU Delays Retaliation to Allow Talks

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    E.U. officials ​announced on Thursday that they would delay their plans for retaliatory tariffs after President Trump’s abrupt decision to hit pause on some of the levies he had placed on Europe and much of the rest of the world.Mr. Trump’s announcement, a day before, had signaled what European leaders were hoping for: a possible willingness to negotiate.Washington’s pivot came just hours after European officials had approved retaliatory levies of 10 to 25 percent on about $23 billion of U.S. imports. But given the American shift in stance, E.U. leaders said on Thursday that they would take a 90-day pause of their own.“If negotiations are not satisfactory, our countermeasures will kick in,” Ursula von der Leyen, president of the European Commission, announced in a statement. “Preparatory work on further countermeasures continues.”The Trump administration is specifically pausing what it has called “reciprocal” tariffs — across-the-board taxes that apply in different amounts to different countries. Mr. Trump announced those levies on April 2 and said that the European Union would face a levy of 20 percent. With his about-face on Wednesday, the bloc would most likely instead face a 10 percent across-the-board tariff for the next 90 days.But the 25 percent tariffs that Mr. Trump has placed on both cars and on steel and aluminum seemed to be still in place — and the retaliation that Europe approved on Wednesday was in response to those metal-sector tariffs, not to the tariffs that Mr. Trump has now delayed. The retaliation plan would have applied tariffs of 10 to 25 percent on a wide range of goods, including soybeans, peanut butter and hair spray. Officials will now “take a bit of time to think, take a bit of time to analyze, take a bit of time to reflect,” Olof Gill, a spokesman for the European Commission, said at a news conference on Thursday.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More