Extended tariffs may push a US-China deal beyond 2020

2019 ◽  
Keyword(s):  
United States ◽  
National Security ◽  
The United States ◽  
Domestic Activity ◽  
Content Type ◽  
China Trade ◽  
The Us ◽  
Trade Dynamics ◽  
Better Than ◽  
The Eu

Subject US-China trade policy ahead. Significance Starting on August 1, the United States and China have this month imposed more import tariffs on each other’s products following the collapse of the Shanghai round of US-China trade talks. The quick reaction by both indicates that neither sees much prospect of reaching a deal. To protect domestic activity and maintain momentum for further talks, both could apply a lower tariff to products they cannot buy from elsewhere. For example, rare earths, which the United States depends on China for, remain exempt from tariffs. Impacts Worries about the overreliance on consumer spending and uncertainty over investment ahead suggest that the US downturn could accelerate. Despite suffering slower growth and employment worries, China will not simply agree a deal on the US administration’s terms. Chinese negotiators understand the US-China trade dynamics better than the US administration and will use this to their advantage. The US administration can impose 25% tariffs on its global imports of cars and parts, citing national security; this would hit the EU hard.

WikiLeaks disclosures will intensify US anti-leak push

2017 ◽  
Keyword(s):  
United States ◽  
National Security ◽  
The United States ◽  
Content Type ◽  
Privacy Concerns ◽  
Technology Firms ◽  
Internet Regulation ◽  
The Us ◽  
Us Government ◽  
The Eu

Significance Microsoft said WikiLeaks had been in contact with them about vulnerabilities disclosed when WikiLeaks published files on March 7, the first in a series called ‘Vault 7’. This leak has been rebuked by US national security officials, but further revelations could be forthcoming. Impacts Customers may be reluctant to buy products that have previously been associated with CIA spy tools and listening devices. The revelations will damage an already strained relationship between the US government and technology firms. Privacy concerns will hinder internet regulation liberalisation between the United States and other countries, particularly in the EU.

Crises and 'pivot' will boost US intelligence agencies

2015 ◽  
Keyword(s):  
United States ◽  
National Security ◽  
Balance Of Power ◽  
The United States ◽  
Intelligence Community ◽  
National Security Agency ◽  
Content Type ◽  
The Us ◽  
The Subject ◽  
Public Scrutiny

Subject The US intelligence community in a year after purported reforms. Significance On December 29, an agreement between the United States, Japan and South Korea to share intelligence on North Korea went into effect. This ended a year in which the US intelligence community was the subject of broad domestic public scrutiny in the light of continued fallout from former National Security Agency (NSA) contractor Edward Snowden's leaks to a Senate report on the CIA's use of torture. The White House's support for reforms has been watched by tech and telecoms businesses that have lost considerable revenue from reputational damage as a result of the growing awareness of requirements on them of US intelligence activities. Impacts The Obama administration will rely on the US intelligence community as its main counterterrorist instrument. A Republican Congress will be less likely to support intelligence reforms, though only marginally so. There is no indication that the balance of power on intelligence issues between the executive and legislative branches has shifted.

EU-US TTIP talks are unlikely to progress

2016 ◽  
Keyword(s):  
United States ◽  
Trade Agreements ◽  
The United States ◽  
The Political ◽  
Content Type ◽  
Transatlantic Trade ◽  
The Us ◽  
Trade And Investment ◽  
The Eu ◽  
Public Opposition

Subject The prospects for finalising TTIP. Significance While the EU as a whole -- the European Commission, most member states and a majority of members of the European Parliament (EP) -- appears to remain committed to a wide-ranging agreement with the United States, there are growing indications that public opposition may render the proposed Transatlantic Trade and Investment Partnership (TTIP) agreement politically unviable. Impacts TTIP is estimated to raise the EU's GDP by 0.5%. European governments may decide that such a modest growth boost is not worth the political problems generated by the negotiations. If implemented, its terms could serve as a blueprint for future trade agreements between the EU and other countries. The deal's prospects will be diminished by the US election cycle's appeals to protectionist sentiment.

EU-US economic ties will survive testing US policies

2018 ◽  
Keyword(s):  
United States ◽  
Trade Deficit ◽  
The United States ◽  
Content Type ◽  
Transatlantic Trade ◽  
The Us ◽  
Foreign Affiliates ◽  
Commission President ◽  
Economic Ties ◽  
The Eu

Subject EU-US ties. Significance Attracting the ire of US President Donald Trump, the US goods trade deficit with the EU has widened since 2009. While Trump blames the imbalance on the EU charging higher tariffs on its US imports than the United States charges on its EU imports, the deficit is instead driven by US demand. Most US-EU trade is between foreign affiliates and the declaration between Trump and European Commission President Jean-Claude Juncker in late July reaffirmed the close economic ties between the two blocs. Impacts The prospects for US exports of LNG to the EU will be higher if Chinese retaliatory restrictions remain in place. The US farm lobby will push for agriculture to be covered in the trade negotiations. The negotiations are unlikely to lead to a return to a comprehensive Transatlantic Trade and Investment Partnership-type deal. Renegotiating US-EU goods trade tariffs will necessarily involve other chapters including services or foreign investment. Escalating trade tariffs would damage the EU but would damage the United States more owing to the size of US-EU cross-border investments.

Next US president will confront nuclear disorder

2016 ◽  
Keyword(s):  
United States ◽  
National Security ◽  
The United States ◽  
Barack Obama ◽  
Presidential Transition ◽  
Content Type ◽  
Nuclear Policy ◽  
The Us ◽  
Nuclear Response

Significance As Barack Obama eyes the January 2017 presidential transition, Washington's decades-long goal of a stable global nuclear order appears to be under threat from multiple quarters. Obama was mulling a US nuclear posture shift in August, whereby he would declare that the United States would only launch its nuclear deterrent in response to a nuclear strike by an adversary, ruling out a nuclear response to a conventional attack on US or allied forces. Impacts Deviation by Washington from support of disarmament and existing legal instruments could strain ties with some US allies. Trump's unorthodox positions on nuclear policy will promote defections by national security Republicans to Clinton's camp. A candidate's campaign trail rhetoric is likely to influence the credibility of the US nuclear deterrent once in office.

US partisanship will damage its Middle East standing

2018 ◽  
Keyword(s):  
United States ◽  
Middle East ◽  
House Of Representatives ◽  
The United States ◽  
Content Type ◽  
Regional Role ◽  
The Us ◽  
Us Senate ◽  
Middle East Policy ◽  
The Eu

Significance Trump’s controversial Middle East policy decisions have met bipartisan criticism in the US Senate, but in the House of Representatives -- where the influence of the party grassroots is more keenly felt -- Republican congressmen have staunchly backed the president. There are growing partisan differences towards other countries, a notable shift from previous decades when party was not a clear indicator for preference. This may have a major impact on Washington’s future relationship with the Middle East. Impacts Foreign lobbying efforts in Washington will increasingly be targeted on a partisan basis. Russian foreign policy, not beholden to the vagaries of democracy, may become more influential in the Middle East. The EU could seek to play a stronger, independent regional role to replace the United States.

China agreement will not help US manufacturers

2019 ◽  
Keyword(s):  
United States ◽  
The United States ◽  
Trade Negotiations ◽  
Upper Midwest ◽  
Donald Trump ◽  
Content Type ◽  
China Trade ◽  
The Us ◽  
The Impact ◽  
Trade Wars

Subject The impact of the US-China trade wars on US manufacturers. Significance The United States and China reached a tentative agreement in trade negotiations on October 11 that President Donald Trump described as "a substantial phase one deal". The deal, which is yet to be finalised, centres on China's agreement to purchase some 40-50 billion dollars' worth of additional US agricultural goods annually, and Trump's agreement to suspend a planned increase in tariffs on 250 billion dollars' worth of Chinese goods, from 25% to 30%, that was due to take effect tomorrow. However, existing tariffs on both sides remain in place. Impacts A manufacturing recession could lead to greater upper Midwest voters’ discontent. Midwestern voter discontent could help a Democrat win the presidency in 2020, and a populist win the party’s nomination. US-based manufacturers could benefit from new contracts as supply lines are revised, but costs would rise. A second Trump tax cut in 2020 could temporarily help US-based firms avoid competitiveness gaps.

EU is unlikely to change course on Russia sanctions

2017 ◽  
Keyword(s):  
United States ◽  
Import Substitution ◽  
Oil Prices ◽  
The United States ◽  
Content Type ◽  
Annual Basis ◽  
The Us ◽  
Food Imports ◽  
The Eu

Significance The sanctions, reviewed on a semi-annual basis, have now been extended until January 2018, despite speculation about divisions within the EU. This comes after the US Treasury imposed new sanctions on 38 individuals, companies and organisations on June 20. Impacts Russia is likely to continue efforts to sow divisions within the EU and between the EU and the United States. Future oil prices will shape Russia’s ability to weather sanctions. Russia may raise capital through bond sales and by turning to Asian investors, although this may not fully offset the effects of sanctions. Russia’s counter-sanctions -- a ban on food imports from the EU -- have led to some successful agricultural import substitution.

EU-US relations may be at a turning point

2018 ◽  
Keyword(s):  
United States ◽  
United Kingdom ◽  
Turning Point ◽  
The United States ◽  
Content Type ◽  
The United Kingdom ◽  
The Us ◽  
Multiple Pressures ◽  
Difficult Road ◽  
The Eu

Significance Trump first snubbed the EU on April 30 with a mere postponement of possible tariffs and then humiliated the E3 (Germany, France and the United Kingdom) on May 8 with his decision to withdraw from the Iranian nuclear deal. This sends a highly symbolic message from the US president to his European allies: buckle or face penalties. Impacts Trump’s decisions reinforce a growing realisation in the EU that he will interpret their search for compromise as weakness. The EU faces a difficult road ahead with multiple pressures increasing, both within and outside the bloc. The growing divide between the EU and the United States will please Russia.

Tariffs can no longer mask broader economic weakness

2019 ◽  
Keyword(s):  
United States ◽  
Monetary Policy ◽  
World Bank ◽  
Economic Activity ◽  
The United States ◽  
Asian Development Bank ◽  
Development Bank ◽  
Content Type ◽  
China Trade ◽  
The Us

Significance Global economic activity is deteriorating widely. This is despite the fact that the US-China trade conflict is not escalating, China is loosening fiscal policy and the United States and euro-area are committing to looser monetary policy. On April 3 the Asian Development Bank reduced its 2019 growth forecast for developing Asia to 5.7%, down from 5.9% a year ago, and the WTO reduced its forecast for 2019 growth in global trade volumes to 2.6%, from 3.7% in September. Impacts David Malpass became World Bank president this month and concerns will linger about his alignment with Trump’s ‘America First’ policies. If the US call to double the IMF’s ‘New arrangements to borrow’ passes, the debate over a permanent capital increase will be pushed back. A no-deal Brexit may push UK GDP into recession, hurting others as Germany, France and Spain’s UK exports sum 10 billion dollars or more. US-EU relations could deteriorate as the US trade body threatens billions of dollars of tariffs in retaliation for EU Airbus subsidies.

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