The US is beating the Chinese shipbuilding industry: The administration of Donald Trump wants to impose special fees on ships produced in Chinese shipyards. It has this limit China's dominance in the shipbuilding and logistics industry. The problem, however, is that this may have fatal effects on global trade and the shipping industry.
16 thousand tons of pipes with a symbol of chaos: Bloomberg writes that the symbol of the chaos embracing world trade since the Trump administration entered the White House, it is pile of 16 thousand tons of steel pipes lying in the German port. “Doctors in Germany should prepare for the loading of the first batch for a container ship flowing in Louisiana. Instead, the load lies in a German warehouse after Washington proposed to impose fees in the amount of a million dollars on Chinese ships mooring in USA” – we read.
“Trade Apocalypse”: Talks on the conditions of shipping pipes were suspended until the case is clarified. Bloomberg emphasizes that in the case of this particular route through the Atlantic 80 percent. The shipowner was built in China, “which means that The parcel would be subject to an additional 1 to $ 3 million depending on the variant used“This can be twice or three times the current cost of shipping steel pipes from Germany. John McCown, a veteran of the maritime transport industry, described the activities of Trump's administration as” Apocalypse for Trade “.
Too strong China? This is one of the countless transactions that “got stuck” after the offer of the United States Trade Representative Office (UPR), which aims to limit China's dominance. Donald Trump announced a blow to the Chinese shipbuilding industry already in his February Memorandum. According to Ustr, the position of Beijing gives him power over “global supply, prices and availability”. On Monday, March 24, Ustr is to be interviewed in Washington regarding fees for Chinese ships.
“It won't work”: In the US capital, they are to appear, among others Representatives of trade “from soy growers to carriers”. Dozens companies They are to listen to the explanations of Ustr because they are afraid that the proposals for fees will disturb global trade, supply chainsmore than duties imposed by Donald Trump. This would have fatal effects on the US economy. – reverse, multi -million fee – will not work. It only serves punishing American consumersenterprises, especially farmers. There will be an increase pricesjobs will be at risk – said Joe Kramek, general director of World Shipping Council.
See also: China versus Germany. More in the text “'Second shock'.
Source: Bloomberg