- In today’s CEO Daily: Diane Brady’s international trade tax on Trump.
- Big story: The tariffs were worse than expected.
- market: A global sell-off is underway.
- Analysts pointed out From Wedbush, Umand raise funds – you guessed it – tariffs, jobs and Tesla.
- add: All news and reservoir chat wealth.
Good morning. Friend or enemy? Yesterday, Donald Trump announced that the sweeping target targets targeting all U.S. trading partners was not important. Title Numbers to Know: The benchmark tax rate for all imports is 10%, specific and higher tariffs for certain countries, including 34% in China (above the existing 20% tariff), 20% in the EU, and up to 46% in Vietnam and Cambodia, respectively. “They do this to us, we do this to them,” the president said during the Rose Garden tariff unveiling. “The radiation started with some thoughtful food:
Worse than expected. When the White House is Ironing details In the deep-dive Tuesday plan, the market showed some signs of life as investors wanted last-minute leniency. But stock futures took a dive after Wednesday’s announcement. according to Ministry of Commerce dataand industries like the automotive industry with complex global supply chains.
This undermines the manufacturer’s China +1 strategy. Some Asian countries have been particularly hit 40% or more tariffsa blow to U.S. manufacturers diversify production outside China into low-cost neighbors such as Vietnam, Bangladesh and Cambodia, especially in areas such as textiles and electronics. gap Inc.-Slit, Track and Fieldthe Republic of Banana and the Old Navy – has reduced contact with China in recent years, but is still in Most of the clothing from New tariffs from Asian countries have taken a huge blow. Changes take time.
Strong global opposition could hurt all companies. Trump describes yesterday’s tariffs as “Friendship” of US trading partners. From the rage Foreign leaders For foreign consumers who boycott U.S. products and travel, it is clear that our partners disagree. Hostility is bad for business, economists from EY, Goldman Sachs and Moody’s Predicting lower growth From self-imposed tariff wounds. I spoke with Niccolo de Masi, CEO of IONQ, quantum computing company. “We are building everything in the United States,” he said. “We are not negatively affected by tariffs, but the reality is that our ability to succeed in Asia and Europe is to have more presence there.” If the trade war whips the instinct of nationalism, it will be difficult to do.
This could ruin tough economies and industries. Jacques Vandermeiren, CEO of the second largest port in Europe – Brugis Port Tell my colleague Peter vannam Earlier this fall, “If Trump has tariffs of up to 10%, we will trade.” Vandermeiren warned that much higher than that could cause disaster for European steel, aluminum, automobiles and other export-oriented industries. The Struggling Watch Industry in Switzerland Export its products morewill now face a huge 31% tariff. Will those who desire Rolex or Patek Philippe replace it? I doubt.
There will be a lot of negotiations in the coming days, and from experience, it is known that what appears at the press conference may not translate into border operations or can be reversed quickly. U.S. consumers spend more than two-thirds of GDP and they are not excited about their perceptions of all these tariffs and will ultimately help them. Consumer sentiment Tracked by the University of Michigan It has been falling at its lowest level this year since 2022.
Adam Smith once wrote that the country seldom begs neighbors to thrive. It was in 1776, when Mercantilism was about to die and the United States was born. The young country broke away from British rule and used tariffs to develop local industries that later competed on the world stage. With global connections we are now back to the tariff levels that appeared in the early 1900s, as cars just appeared on the scene, the impact could be very different.
More news below.
Contact CEO Daily Daily Diane Brady at diane.brady@fortune.com
This story was originally fortune.com
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