{"id":142748,"date":"2020-03-19T06:40:08","date_gmt":"2020-03-19T06:40:08","guid":{"rendered":"https:\/\/www.bnreport.com\/trumps-trade-war-proves-immune-to-the-coronavirus-crisis\/"},"modified":"2020-03-19T06:40:08","modified_gmt":"2020-03-19T06:40:08","slug":"trumps-trade-war-proves-immune-to-the-coronavirus-crisis","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/trumps-trade-war-proves-immune-to-the-coronavirus-crisis\/","title":{"rendered":"Trumps trade war proves immune to the coronavirus crisis"},"content":{"rendered":"<p>Despite the coronavirus pandemic, unprecedented lockdowns and fears of a global economic meltdown, U.S. President Donald Trump is still waging his tariff-hiking trade war.<\/p>\n<p>Just one day after G7 leaders \u2014 including Trump \u2014 said they remained \u201ccommitted to the stability of the global economy\u201d and pledged to \u201ccoordinate measures and do whatever it takes\u201d to safeguard economic growth, Washington confirmed it was pressing ahead with tariff hikes on European aircraft to 15 percent, up from 10 percent, starting Wednesday.<\/p>\n<p>Airlines have been some of the first and hardest-hit casualties of the crisis, and their crack-up is sending shockwaves through their suppliers. Americas Boeing has called for a $60 billion bailout of the aerospace sector.<\/p>\n<p>European leaders such as Commission President Ursula von der Leyen and her trade chief Phil Hogan had hoped that they would be able to steer Trump away from the trade war with a mini-deal in sectors such as technology, energy and food regulation. But that diplomacy fell flat, as Washington plowed on with efforts to shake up the dynamics of global trade, partly in the hope that its tactics will bring manufacturing jobs back to the U.S.<\/p>\n<p>The United States carried through with its tariff hike on Wednesday. According to the U.S. <a href=\"https:\/\/ustr.gov\/sites\/default\/files\/enforcement\/301Investigations\/Notice_of_Modification_of_Section_301_Action_Enforcement_of_U.S._WTO_Rights_in_Large_Civil_Aircraft_Dispute.pdf\" rel=\"noreferrer noopener\" target=\"_blank\">Federal Register<\/a>, the tariff hike took effect \u201cwith respect to products that are entered for consumption \u2026 on or after 12:01 a.m. eastern standard time on March 18, 2020.\u201d<\/p>\n<blockquote><p>\n\u201cFaced with a global pandemic and global recession \u2026 one would think that any rational [person] would seek to stabilize trade and reassure markets\u201d <em>\u2014 Senior EU official<\/em>\n<\/p><\/blockquote>\n<p>The Commission replied on Wednesday that its \u201cstrong view is that the focus of both sides should be on finding a negotiated solution to the aircraft disputes.\u201d<\/p>\n<p>\u201cHogan made this point strongly to Ambassador [Robert] Lighthizer when they spoke on March 16,\u201d a spokesperson said, adding that the \u201cCommission negotiating team will follow up actively with their U.S. counterparts in the coming days\u201d to secure a truce.<\/p>\n<p>The tariffs are unlikely to have any additional effect on Airbus in the short term, given that U.S. airlines have already delayed orders over the coronavirus travel bans.<\/p>\n<p>A spokesperson for French Economy Minister Bruno Le Maire said Paris regretted the U.S. decision to hike tariffs: \u201cWe must do quite the opposite and coordinate our responses and support our economies.\u201d<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.politico.eu\/wp-content\/uploads\/2020\/03\/h_55750869-714x478.jpg\"\/><\/p>\n<p>European Commissioner for Trade Phil Hogan with European Commission President Ursula von der Leyen | Stephanie Lecocq\/EPA<\/p>\n<p>Still, the tariff hike is yet another sign that Trump is not willing to put an end to his trade war, despite the enormous strain on the global economy and warnings from industry that government measures to contain the pandemic, such as travel bans, are <a href=\"https:\/\/www.politico.eu\/pro\/coronavirus-travel-bans-could-cripple-global-air-cargo-trade\/\" rel=\"noreferrer noopener\" target=\"_blank\">already impacting global trade<\/a>.<\/p>\n<p>International organizations such as the OECD <a href=\"http:\/\/www.oecd.org\/berlin\/publikationen\/Interim-Economic-Assessment-2-March-2020.pdf\" rel=\"noreferrer noopener\" target=\"_blank\">have warned<\/a> of a global recession, and urged governments to cooperate to cushion the impact and calm markets.<\/p>\n<h3>Escalating crisis<\/h3>\n<p>Trumps decision to stick to his guns came as a blow to those who had hoped that the current crisis would cause a trade truce, if not an end to the war.<\/p>\n<p>EU officials reacted with disbelief. \u201cFaced with a global pandemic and global recession \u2026 one would think that any rational [person] would seek to stabilize trade and reassure markets,\u201d said one senior EU official.<\/p>\n<p>Christophe Hansen, a lawmaker in the European Parliament and trade coordinator for the European Peoples Party, warned that \u201cfanning the flames of the trade war,\u201d was an \u201cirresponsible and a dangerous distraction from the fight that really matters today.\u201d<\/p>\n<p>While international cooperation was the \u201ckey\u201d to a global recovery, Hansen warned that \u201cthis decision will only further undermine our already tense trade relations.\u201d<\/p>\n<h3>No tariff relief<\/h3>\n<p>The move was also a blow to many U.S. lawmakers who had also hoped for some trade respite.<\/p>\n<p>Stephanie Murphy, a Florida Democrat, last month asked U.S. Trade Representative Robert Lighthizer to lower tariffs on the EU and China to calm markets.<\/p>\n<p>\u201cThere is one lever currently entirely in the administrations [power] to provide a significant tax break to both businesses and consumers in America, and thats initiating a <em>d\u00e9tente<\/em> in the trade wars that were started with the Section 232 and Section 301 tariffs,\u201d Murphy said after a House Ways and Means Committee meeting with Lighthizer. Other U.S. lawmakers endorsed her proposal.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.politico.eu\/wp-content\/uploads\/2020\/03\/GettyImages-1170676219-714x476.jpg\"\/><\/p>\n<p>White House trade adviser Peter Navarro | Fabrice Coffrini\/AFP via Getty Images<\/p>\n<p>But White House trade adviser Peter Navarro last week slammed the idea, telling POLITICO \u201cthere are no discussions within the White House\u201d about whether to suspend some ta<a href=\"https:\/\/www.politico.eu\/article\/trumps-trade-war-proves-immune-to-the-coronavirus-crisis\/?utm_source=RSS_Feed&amp;utm_medium=RSS&amp;utm_campaign=RSS_Syndication\" rel=\"noreferrer noopener\" target=\"_blank\">Read More \u2013 Source<\/a><br \/>\n[contf]<br \/>\n[contfnew]<br \/>\n        <img decoding=\"async\" src=\"https:\/\/snap.md\/wp-content\/uploads\/2018\/03\/politico-logo.jpg\"\/><\/p>\n<h5><a href=\"https:\/\/www.politico.eu\/\" rel=\"noreferrer noopener\" target=\"_blank\">politico<\/a><\/h5>\n<p>[contfnewc]<br \/>\n[contfnewc]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite the coronavirus pandemic, unprecedented lockdowns and fears of a global economic meltdown, U..<\/p>\n","protected":false},"author":1,"featured_media":142749,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[202],"tags":[],"class_list":["post-142748","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - 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