The world economy is working through several trade pattern changes and partnerships.
The world economy is working through several trade pattern changes and partnerships.
Transcript
The world economy is working through several trade pattern changes and partnerships.
At a tech show in Germany this week, tariffs were on the minds of exhibitors looking for new markets and planning for existing ones, including in places they already have manufacturing operations.
Markus Miele, executive director of Miele: "The thing about tariffs is it changes more or less every day…. But of course, if tariffs were to come, we have to increase prices of course and the customer has to pay the tariffs in the end.”
Many companies with displays around food and AI have already expanded in the countries where they have factories, hedging their bets on policy changes.
Enrico Hoffmann, Senior Vice President of Sales and Marketing at BSH Group: "We have 40 factories worldwide and we have a local for local strategy. So what we produce in China is mainly for the Asian market and the American market we serve it mainly from our American and Mexican factories. So that is why it's not that much affecting us."
India, and its 1.4 billion people, is seen as a market of opportunity for the United States.
This week, it was China hosting the Indian prime minister in an effort to rebuild ties between the two countries. The meeting was ahead of a regional summit.
Leaders from North Korea and Russia were also in Beijing and the session was seen by some analysts as an act of defiance towards the United States and its allies.
Ukraine is also a part of the equation between all of these countries. As is the oil purchase by India from Russia. President Trump has announced a 50% tariff on India for its purchase of Russian oil. According to Trump’s trade advisor Peter Navarro, India’s purchases of Russian oil only started after the invasion of Ukraine making the Asian powerhouse an enabler of that war.
Peter Navarro: “India charges the highest tariffs in the world, has the highest non-tariff barriers. So they export a bunch of stuff to us. We can't export to them. Our workers and our businesses get hammered by India. India then uses the money we give them buying their exports to buy Russian oil.”
Secretary of State Marco Rubio, arrived in Mexico this week in an effort to work out trade, migration and border security issues.
Mexican President Claudia Sheinbaum hosted the event aimed at collaboration on security matters.
Regardless of the outcomes in all these negotiations, uncertainty in trade has been tough for agriculture and business in general.
Gbenga Ajilore, Center on Budget and Policy Priorities “If you're putting trade restrictions to be more competitive, then if the countries respond to that and are more competitive, then that's a good goal and they meet that, but then you're not raising revenue because in the revenue goes because you take the tariffs off.”
For Market to Market, I’m David Miller.
Watch More
Agriculture gets sorted to the side during high-stakes negotiations with China. The yeas have it - E15 is approved in the House but not without some pushback. Revving up fans, drivers, and rural communities on the dirt track. And, commodity market analysis with Naomi Blohm.
President Trump met with Chinese President Xi this week in a highly anticipated two-day summit.
Oil, fertilizer, and protein join the discussion for our Market Plus with Naomi Blohm along with corn, soybeans and weather.
One wet blanket hangs over the corn market in our Market Analysis with Naomi Blohm. We also cover cheese and soybean demand as part of the commodity story.
The U.S. House approved the sale of year-round E15. The bill now goes to the U.S. Senate.
Underneath the fun and excitement surrounding the rituals of dirt track racing at local speedways are the spinning wheels of economic good that smalltown race tracks bring to their communities.