tv Business - News Deutsche Welle June 23, 2018 3:02am-3:15am CEST
trump's twitter trade's tirade sent stocks sinking the u.s. president threatens to snap tariffs on car imports from the e.u. but will his plans cause more harm than good for the average american and we talk turkey the lira is at historic lows and inflation and unemployment are in the double digits as the country heads to the polls on sunday because the economy enough to sway voters away from president. and daniel winter and this is your business update donald trump has launched another salvo in the trade dispute between the u.s. and the european union after tariffs took effect on friday targeting american consumer goods by whiskey and motorcycles the u.s. president threatened a twenty percent tariff on european cars he used twitter of course to say that the u.s. should build them here instead the u.s. imported cars and light trucks worth forty two billion dollars from the e.u. last year shares and top european carmakers most of them german dropped sharply
following the news. and hence quarter is on wall street for a c.n.c. what kind of trade impact can we expect of this proposal does go ahead. if you only look at the car industry and also include auto parts the united states is running a trade deficit deal with the european union in the amount of forty four billion dollars so as far as we know no exec measures are under way yet it is a threat from the u.s. president so we really have to wait and see if auto parts for example will be included in those tariffs as well and if there actually will really be coming but it well there is a lot of money on the table in the financial press commenting on this that there could be potential for the plan to backfire on u.s. consumers and workers what are you hearing. that's always the case when we talk
about tariffs that doesn't mean it doesn't matter if it's on a limb in yemen if it's on products from canada or and all possibly from cars from europe and at the end u.s. consumers probably will end up paying more but on the other side the u.s. is hoping that with those tariffs some of those companies will decide to produce more within the united states and that could be or could have a positive impact on the employment situation in the united states especially late in the ninety's early two thousand we had hundreds of thousands of jobs being lost in the u.s. car industry some of those jobs have been recovered but they had been quite an impact if you look maybe about twenty years back again is trump has he picked the right target here is the e.u. car industry really harmful to the u.s. economy or is it just hitting the e.u. where it hurts. well if you if you look. at cars getting
imported to the united states the european union is a distant fourth or far behind countries like mexico for example or all saw canada a good seven percent of imported cars here into the united states to come from a europe so that is a certain number but by far not the biggest one but he certainly would hit. you of we had heard most of them and if you look at the car market the global car market the u.s. behind china has the biggest the second biggest car market in the world so it is. quite important area for the european companies to be in yes that would hurt you rob where it hurts and it wouldn't have such a huge impact probably on the u.s. car market overall well perhaps he's less in the driving seat the motors driving
the e.u. crazy thank you very much. as we heard trump was reacting to the e.u.'s counter-terror such came into effect on friday they in turn were an answer to trump's tariffs on steel alimony and levies the e.u. is charging on u.s. imports as of now include some iconic american products such as whiskey and holly davidson bikes. perhaps it's fishing that in this new era of unfree trade it is the harley davidson the symbol of personal freedom that's going to be hard hit the e.u. has introduced a twenty five percent employed g.e. on american made motorcycles. customers who ordered their haul before the new tariffs will still pay the old price for everyone else an extra twenty five percent means thousands of euros more the dealership would prefer not to say if and when the extra cost will be passed on to consumers but over time it is almost certain that these much loved motorcycles will be more expensive neither the dealers nor
the make is a willing to absorb the new tax but a true holly fan would be easily deterred as this is how it looks but it's also the sound and the feeling of what is going through. this sort of feeling is a feeling of freedom i have many friends who ride one it's definitely had an effect on me. to make as we'll be counting on the brand's popularity to keep up demand holly davidson comes from the state of wisconsin which voted for donald trump at the last election last year the president was predicting that the company would flourish thanks to tax cuts instead it could be looking at a drop in revenue. to turkey where severe economic troubles are weighing heavily on voters' minds as they head to the polls on sunday for general and presidential elections the country's currency is losing fast driving up prices this week than they were hit a new historic low against the u.s. dollar but even that doesn't look likely to knock president of course for
reelection they only harm reports from istanbul. machines are still rattling away in this istanbul printing house takin bhalo has been in charge for over thirty years but he says business hasn't been this bad in a long time. i. think. most of the raw materials we have to be imported. because the lira is getting weaker against the euro and. our costs have increased a lot. to. struggle to survive so. many turkish people share. prices are rising because the lira is worth less and less. on employment stands at
over ten percent just ahead of the election the economy is casting a shadow over the country's mood. my pension just isn't enough we can barely make it to the end of the month. even young university graduates are unemployed. everything is expensive especially the rents the government needs to act as soon as possible. economist most of us and mez is convinced that president calderon brought the vote forward to get it in ahead of a potential economic crash out policies have failed says because he made bad decisions in prosperous times. rather than sectors like farming industry or exports some money was invested in construction projects and domestic consumption it. was a mistake it was economic growth through doping it brought nothing but high
inflation and didn't help reduce unemployment. it's a ticking bolos printing house everyone is well aware of the difficult situation facing the country until now he's managed to award letting go of any workers but that could change if the turkish economy doesn't improve. britain will do much better economically outside of the e.u. that's what backs up proponents claims but two years to the debt since the country voted to leave uncertainty reigns and it's just too much for many multinational companies b.m.w. makers of the iconic british car the many are demanding clarity by the end of the summer otherwise it'll engage its breck's at contingency plans the announcement comes as another big firm airbus warned that it could leave the u.k. if the uncertainty continues putting thousands of jobs at risk.
airbus has threatened to leave the u.k. if britain leaves the single market and customs union without a transition deal is the european every asian group strongest warning yet of the impact of a no deal that basically catastrophic for this country and catastrophic for us and our supply tank this is not just a u.k. supply chain it's the most important thing is that we have frictionless trade which is why with putting the facts on the table today if air bus were to leave britain economic consequences would be tough the pan-european airplane builder currently employs fourteen thousand brits in the u.k. building airplane wings for planes that are put together in germany and france airbus is perhaps the most significant company yet urging the u.k. government to reconsider its policy but not the only one if the brakes it we end up having provide significant friction provides significant cost of course that will
be an argument against making investments here in the u.k. and no deal scenario is just a little bit too high in terms of the amount of friction that it will create. it's unclear if the british government is hearing the pleas from the business community although all they are sounding ever more serious closer we get to that march deadline that the more last minute summits we start seeing organized in order to to get some kind of deal done the greater the chance of an accident throwing things out at the last minute we really worry about that we don't have that long to go. but just how at this point there is no deal in sight british prime minister theresa may has ruled out staying in the customs union but you officials have regularly put a damper on any hopes for free trade agreement outside the union. and the wraps of your business update don't forget there's more on social media from me and the d.w.
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