Month: May 2018

Reaction to U.S. President Donald Trump’s decision to slap tariffs on steel and aluminum imports from American trading partners — including the European Union — came fast and furious, with threats of retaliation and warnings they risk sparking a trans-Atlantic trade war. European Commission President Jean-Claude Juncker said the European bloc would respond by imposing penalties of its own on American exports. “Today is a bad day for world trade,” said Cecilia Malmström, the European trade commissioner. EU officials previously informed the World Trade Organization of the bloc’s plan to levy duties on $7.2 billion worth of U.S. exports if the Trump administration proceeded with threats to impose a 25 percent tariff on steel imports and 10 percent on aluminum. Canadian and Mexican officials also threatened retaliatory responses but have as yet not indicated which U.S. products they will target. Both countries had hoped that the White House would continue to exempt them from the tariffs.  National security cited Europe, along with Canada and Mexico, had been granted a temporary reprieve from the U.S. tariffs after they were unveiled in March by Trump, who said the levies were needed to stem the flood of cheap steel and aluminum into the U.S. and that to impose them was a national security priority. In Europe, there was disappointment, but less surprise.  Juncker called the U.S. action “unjustified” and said Europeans had no alternative but to respond with tariffs of their own and to lodge a case against Washington with the World Trade …

The United States is escalating trans-Atlantic and North American trade tensions, imposing a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports from the European Union, Canada and Mexico beginning on Friday. The U.S. also negotiated quotas or volume limits on other countries, such as South Korea, Argentina, Australia and Brazil, instead of tariffs, Commerce Secretary Wilbur Ross also told reporters by telephone.  President Donald Trump has repeatedly said such measures are necessary to protect American jobs and industries in key manufacturing sectors.  “The president’s actions are about protecting American steel, American aluminum,” a White House spokesman, Raj Shah, said on Fox News. “They’re critical for national security.” But the negative reaction from some of America’s most important strategic allies has been quick and fierce. Canadian Prime Minister Justin Trudeau called the tariffs “totally unacceptable” and vowed retaliation.  “This decision is not only unlawful, but it is a mistake in many respects,” said French President Emmanuel Macron, warning that “economic nationalism leads to war.” France’s finance minister, Bruno Le Maire, who met Ross earlier on Thursday, said the U.S. shouldn’t see global trade like the Wild West or Gunfight at the O.K. Corral. ‘Bad day for world trade’ European Commission President Jean-Claude Juncker said the U.S. move marked “a bad day for world trade,” announcing there is “no choice” but to proceed with a World Trade Organization dispute settlement case and additional duties on numerous U.S. imports. The retaliatory tariffs from the Europeans are expected to …

When Oregon lawmakers created the state’s legal marijuana program, they had one goal in mind above all else: to persuade illicit pot growers to leave the black market. That meant low barriers to entry that also targeted long-standing medical marijuana growers, whose product is not taxed. As a result, weed production boomed — with a bitter consequence. Now, marijuana prices here are in free fall, and the craft cannabis farmers who put Oregon on the map decades before broad legalization say they are in peril of losing their now-legal businesses as the market adjusts. Oregon regulators on Wednesday announced they will stop processing new applications for marijuana licenses in two weeks to address a severe backlog and ask state lawmakers to take up the issue next year. ​California takes heed Experts say the dizzying evolution of Oregon’s marijuana industry may well be a cautionary tale for California, where a similar regulatory structure could mean an oversupply on a much larger scale. “For the way the program is set up, the state just wants to get as many people in as possible, and they make no bones about it,” Hilary Bricken, a Los Angeles-based attorney specializing in marijuana business law, said of California. “Most of these companies will fail as a result of oversaturation.” A staggering inventory Oregon has nearly 1 million pounds (453,600 kilograms) of marijuana flower, commonly called bud, in its inventory, a staggering amount for a state with about 4 million people. Producers told The Associated Press wholesale …

President Donald Trump’s administration is planning to impose tariffs on European steel and aluminum imports after failing to win concessions from the European Union, a move that could provoke retaliatory tariffs and inflame trans-Atlantic trade tensions. The tariffs are likely to go into effect on the EU with an announcement by Friday’s deadline, according to two people familiar with the discussions. The administration’s plans could change if the two sides are able to reach a last-minute agreement, said the people, who spoke on condition of anonymity to discuss internal deliberations. Trump announced in March the United States would slap a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum, citing national security interests. But he granted an exemption to the EU and other U.S. allies; that reprieve expires Friday. ​Europe bracing Europe has been bracing for the U.S. to place the restrictions even as top European officials have held last-ditch talks in Paris with American trade officials to try to avert the tariffs. “Realistically, I do not think we can hope” to avoid either U.S. tariffs or quotas on steel and aluminum, said Cecilia Malmstrom, the European Union’s trade commissioner. Even if the U.S. were to agree to waive the tariffs on imported steel and aluminum, Malmstrom said, “I expect them nonetheless to want to impose some sort of cap on EU exports.” European officials said they expected the U.S. to announce its final decision Thursday. The people familiar with the talks said Trump could …

The two largest resort operators in Las Vegas would lose more than $10 million a day combined if housekeepers, cooks and others go on strike, a possibility starting Friday, the union representing thousands of casino workers said Wednesday. The Culinary Union detailed how it thinks a one-month strike would impact MGM Resorts International and Caesars Entertainment, which operate more than half the properties that would be affected if 50,000 workers walk off the job. Workers last week voted to authorize a strike as disputes over workplace training, wages and other issues have kept the union and casino operators from agreeing on new contracts. The union conceded that it is difficult to estimate how the strike at more than 30 casino-hotels would affect Las Vegas overall because the last citywide strike took place in 1984, when the city had 90,000 fewer hotel rooms and only about 12.8 million annual visitors. Last year, more than 42.2 million people visited. Contract expires midnight Thursday But it says MGM and Caesars would see a 10 percent reduction in revenue because of the loss of group and independent travelers. A strike also could happen as fans head to Las Vegas for the Stanley Cup Final. “Furthermore, one might assume a 10 percent worsening of operating margins due to the use of less experienced and less skilled replacements … to keep the doors open, rooms cleaned, food cooked, and cocktails served, not to mention other factors such as the disruptions to management staff’s regular work,” the …

Malaysia and China are looking to re-balance ties as the new government of Prime Minister Mahathir Mohammad seeks to renegotiate billions of dollars of Chinese backed infrastructure spending, with the goal of reducing the country’s national debt. China is Malaysia’s leading foreign direct investor at over $3.38 billion, ahead of the U.S., Japan and Singapore, with major infrastructure deals negotiated during the previous government of Najib Razak. The main contract is a $14 billion (55 billion ringgit) East Coast Rail Link, as well as manufacturing, real estate and sovereign wealth fund bonds. Carl Thayer, a professor of politics at Australia’s University of New South Wales, says Malaysia is seeking to move beyond anti-Chinese rhetoric that had been an undercurrent of the May 9 national polls. Thayer said during the campaign Chinese investment in Malaysia was an issue, amid concerns Malaysia was excessively indebted to China. “But Prime Minister Mahathir since the election has basically declared that the existing agreements will stand — that’s with any country. But there will be a review of these agreements with China. And the key project there seems to be the east coast rail line which is seen as a ‘white elephant’, costing a lot of money and not really delivering,” he said. The East Coast Rail line is a key portion of Beijing’s Belt and Road initiative (BRI) infrastructure into South East Asia covering 688 kilometers connecting the South China Sea with the Thai Border. The new government says the fresh negotiations are a bid …

U.S. Commerce Secretary Wilbur Ross said Wednesday a U.S.-European Union trade deal could still be reached even if the United States imposes tariffs on EU steel and aluminum imports. EU and U.S. officials are holding last-minute negotiations two days before U.S. President Donald Trump decides to apply tariffs on Europe. The threat of tariffs has increased prospects of retaliation and a global trade war that could hinder the global economy. “There can be negotiations with or without tariffs in place,” Ross said at the Organization for Economic Cooperation and Development in Paris. “There are plenty of tariffs the EU has on us. It’s not that we can’t talk just because there’s tariffs.” The Trump administration is also exploring possible limits on foreign auto imports, citing national security.  The EU wants exemptions on steel and aluminum tariffs, which Trump hopes will benefit the U.S., or impose tariffs on U.S. peanut butter, orange juice and other products. In a speech at the OECD, French President Emmanuel Macron said Europe should stand its ground in the face of unilateral actions and warned against trade wars. “Unilateral responses and threats over trade wars will solve nothing of the serious imbalances in world trade. Nothing,” he proclaimed. In an apparent reference to Trump’s proposed tariffs, Macron said, “These solutions might bring symbolic satisfaction in the short term. …. One can think about making voters happy by saying, ‘I have a victory. I’ll change the rules. You’ll see.’”  Macron also called on the EU, the U.S., …

China vows it will fight back if the United States goes through with plans to impose huge tariffs on Chinese goods. President Donald Trump’s administration said in a statement Tuesday it planned to impose 25 percent tariffs on $50 billion of Chinese goods that contain “industrially-significant technology.” It said the proposed tariffs are in response to China’s practices with respect to technology transfer, intellectual property, and innovation.   Chinese Foreign Ministry Spokeswoman Hua Chunying blasted the Trump administration’s apparent reversal Wednesday in Beijing. Hua warned the administration risked squandering its credibility in international relations with every “flip flop” and contradiction of its previous stance. Hua stressed Beijing is not afraid of engaging in a trade war, and will take “forceful” measures if the tariffs are imposed. The White House said it will announce the final list of covered imports by June 15, 2018, and the tariffs will be imposed shortly thereafter. Trump announced in April he planned to impose tariffs on $150 billion worth of Chinese goods, and Beijing responded by declaring it will retaliate by imposing similar amount of tariffs of imported American goods. After two rounds of trade talks aimed at avoiding a full-blown trade war, U.S. Treasury Secretary Steven Mnuchin announced the two sides had reached a deal for Chinato buy more American goods to “substantially reduce” the huge trade deficit with the United States. The Trump administration said in its statement trade talks with China will continue and it will request China remove all of its …

Greece’s largest labor unions are staging a general strike against plans to extend austerity measures, in a 24-hour protest that halted ferry services to the islands, and disrupted flights, public transport and other services.   Wednesday’s strike also closed schools and left public hospitals running on emergency staff.   Government budget austerity measures are due to continue for at least two more years after the international bailout ends in August, starting with another major round of pension cuts next January. Hundreds of protesters gathered in central Athens as several protest marches are planned in the capital and other cities Wednesday.   “The government is continuing disastrous policies for society and the economy, forcing unsustainable measures onto the backs of wage-earners and retired people,” the country’s largest union, the GSEE, said.   “The constant deterioration in the living standards is part of a downward trend that people [in government] chose not to see.”   Greece is currently negotiating the terms of its bailout exit with European creditors, including how its finances will be monitored and the conditions of a promised debt relief package. But the talks, due to be concluded in a few weeks, have been overshadowed by the political crisis in Italy and the resulting financial turmoil.   Eurozone member Greece has relied on money from three consecutive bailouts since losing market access in 2010. The rescue funds have been provided by a eurozone bailout fund and the International Monetary Fund, though the IMF has held off on a cash …

Starbucks closed 8,000 of its stores Tuesday to give 175,000 employees about four hours of anti-bias training. The sessions were part of the company’s response to the April 12 arrests of two black men at a Starbucks in Philadelphia.  Rashon Nelson and Donte Robinson had not purchased anything and told a store manager they were waiting for a friend to join them. They were asked to leave and an employee called the police, which led to their arrest. The scene was recorded on cellphones and quickly spread on social media, prompting sharp criticisms of Starbucks along with protests and calls to boycott the coffee chain. Tuesday’s sessions involved asking employees to discuss with small groups of their colleagues aspects of race and bias and how they can make people feel like they belong. There were exercises of personal reflection asking people to think about when they have thought about their own race, how it has affected their day-to-day lives and interactions with other people.  Questions included evaluating how in the case of speaking to someone of the same race, or the case of speaking to someone of a different race, how easy or hard is it to talk about race, feel comfortable using their natural language and gestures, to be respected without having to prove their worth and express dissatisfaction with something without being told they seem angry. “Without assigning good or bad, do you notice ways you treat people differently?” read one question. Participants were also shown a series …

The U.S.-North Korea summit appears to be back on track, but Pyongyang is showing increased impatience at comments coming out of Washington that what leader Kim Jong Un really wants, even more than his nuclear security blanket, is American-style prosperity. It’s a core issue for Kim and a message President Donald Trump shouldn’t ignore as they work to nail down their summit next month in Singapore. Kim is as enthusiastic as Trump to see the summit happen as soon as possible, but the claim that his sudden switch to diplomacy over the past several months shows he is aching for U.S. economic aid and private-sector know-how presents a major problem for the North Korean leader, who can’t be seen as going into the summit with his hat in his hand. The claim is also quite possibly off target.  North Korea is far more interested in improving trade with China, its economic lifeline, and with South Korea, which it sees as a potential gold mine for tourism and large-scale joint projects. Getting the U.S. to back off sanctions so he can pursue those goals, along with the boost to his legitimacy and whatever security guarantees he can take home, is more likely foremost on Kim’s mind.  Even so, the North’s perceived thirst for U.S. economic aid has consistently been the message coming from Trump and his senior officials. All Kim needs to do, they suggest, is commit to denuclearization and American entrepreneurs will be ready to unleash their miracles on the …

Starbucks, mocked three years ago for suggesting employees discuss racial issues with customers, asked workers Tuesday to talk about race with each other. It was part of the coffee chain’s anti-bias training, created after the arrest of two black men in a Philadelphia Starbucks six weeks ago. The chain apologized but also took the dramatic step of closing its stores early for the sessions. But still to be seen is whether the training, developed with the NAACP Legal Defense and Education Fund and other groups, will prevent another embarrassing incident.  “This is not science, this is human behavior,” said Starbucks Chairman Howard Schultz. He called it the first step of many. The training was personal, asking workers to break into small groups to talk about their experiences with race. According to training materials provided by the company, they were also asked to pair up with a co-worker and list the ways they “are different from each other.” A guidebook reminds people to “listen respectfully” and tells them to stop any conversations that get derailed.  “I found out things about people that I’ve worked with a lot that I didn’t know,” said Carla Ruffin, a New York regional director at Starbucks, who took the training earlier Tuesday and was made available by the company to comment on it.  Ruffin, who is black, said everyone in her group said they first experienced bias in middle school. “I just thought that was pretty impactful, that people from such diverse backgrounds, different ages, that …

Consumer confidence rebounded in May, but households were a bit pessimistic about their short-term income prospects even as they expected strong job growth to persist, which could restrain consumer spending. The Conference Board said on Tuesday its consumer confidence index rose 2.4 points to a reading of 128.0 this month from a downwardly revised 125.6 in April. The index was previously reported at 128.7 in April. “If consumers don’t step up their spending … then the growth outlook this year may disappoint on the weak side,” said Chris Rupkey chief economist at MUFG in New York. U.S. financial markets were little moved by the data amid a deepening political crisis in Italy. The dollar rose to a 10-month high against the euro, while U.S. Treasury yields fell. Stocks on Wall Street dropped, with the S&P 500 and Dow Jones Industrial Average touching near three-week lows. The Conference Board’s so-called labor market differential, derived from data on respondents’ views on whether jobs are plentiful or hard to get, increased to 26.6 in May, the best reading since May 2001, from 22.7 in April. That measure, which closely correlates to the unemployment rate in the Labor Department’s employment report, suggests that labor market slack continues to shrink. But consumers were less upbeat about their short-term income prospects. The share of consumers expecting an improvement in their income fell to 21.3 percent this month from 21.8 percent in April. The proportion expecting a decrease rose to 8.2 percent in May from 7.9 percent …

The White House says it plans to impose 25 percent tariffs on $50 billion of Chinese goods that contain “industrially-significant technology” as trade talks between United States and China continue. The White House said Tuesday the proposed tariffs are in response to China’s practices with respect to technology transfer, intellectual property, and innovation.  It will announce the final list of covered imports by June 15, 2018, and the tariffs will be imposed shortly thereafter. The Trump administration made the announcement in a statement called “Steps to Protect Domestic Technology and Intellectual Property from China’s Discriminatory and Burdensome Trade Practices.” Other punitive steps include implementing stronger investment restrictions and enhanced export controls for Chinese citizens and companies related to the acquisition of industrially significant technology to protect national security.  The proposed investment restrictions and export controls will be announced by June 30, 2018 and adopted shortly thereafter, according to the White House. Trade barriers In addition, the Trump administration said trade talks with China will continue and it will request China remove all of its many trade barriers, including non-monetary trade barriers, and that tariffs and taxes between the two countries be “reciprocal in nature and value.”  In response to the latest threat of tariffs from the White House, the Chinese Ministry of Commerce said in a short statement it is “surprised” by the announcement but added it “also expects it.” The Chinese ministry’s statement claimed the White House move “was apparently contrary to the consensus both sides reached recently.” “China …