A Global Trade War and its Impact

Global Trade War

Trade War

The impact the global trade war is new tariffs and price hikes for everyone from consumers to manufacturers.

Summary of Activities to date:

  • January 2018
    • US placed a 20% tariff on first 1.2M washing machines imported to US
    • 50% on anything above 1.2M
  • January 2018
  • January 2018
    • US placed a 25% tariff on all steel imports on EU, Canada and Mexico
      • These countries retaliated with tariffs of own (e.g., China – multiple products; Mexico– pork; EU– jeans, motorcycles, bourbon, etc.; Canada– 200+ items worth $12.6B)
  • June 2018
    • US placed a 10% tariff on all aluminum imports
      • Matching tariffs where applied by trade partners
  • July 2018
    • US announced a 25% tariff on $34B in trade goods
      • China retaliated with matching tariffs
  • August 2018
    • US announced an additional 25% tariff on $16B in trade goods bringing the total to $50B
      • China has said it will retaliate with no response announced yet

So why is this important?

Trade War

Mario Bruendel, CEO of XportForwarding, a new online ocean freight booking tool commented on the current status of the global trade war underway.

Bruendel is a leader in international shipping with 20 years of international shipping experience, an MBA from Pepperdine University, and undergrad from Hamburger Fern-Hochschulein in Hamburg.

“Keep tabs on the ensuing trade war and tariffs as it continues to impact global cargo carriers has rocked the industry destabilizing long term freight prices. As the WSJ reports, over capacity, competition and lowest price cost wars may end up having a much greater long term impact on trade than the tariffs and trade wars of today.”

Bruendel is a leader in international shipping. 20 years of international shipping experience, an MBA from Pepperdine University, and undergrad from Hamburger Fern-Hochschulein in Hamburg.

Mario has gained global understanding–overseas and here at home–to serve the needs of his customers big and small. His vast international network has given him the privilege to strategically partner and consulted with scores of businesses to help them grow in the international market.

The Wall Street Journal, reported on the deepening trade war and how Maersk projects weaker than expected profits as a direct result of “rising fuel prices, soft freight rates and escalating trade tensions” as the culprit.

Yesterday, The Guardian reported that US President Donald Trump and EU Officials announced that the UE would start importing “billions of dollars worth of American exports, including soya beans and natural gas, and work to reform international trade rules” with the US. So, while the trade war is ongoing with China and carriers are claiming it is impacting trade, imports and exports are still “finding a way.”

This highlights that “Rates have declined despite a wave of consolidation over the past two years that has resulted in only about a half dozen global operators.”

Anonymous sources also said “Operators are less, but competition continues to eat us all up because of rampant overcapacity. Price wars and undercutting is more fierce than ever.”

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For more information contact: Virginia Chavez – virginia@surgepublicrelations.com – 415.939.8318