The manufacturers of merchandise of sportswear to luxury cars and chemicals painted a dark table Wednesday of consumer and industrial health, achieving equity prices and adding concerns about the damage of the American president Donald Trumptrade wars.
Increased prices on all American imports of steel and aluminum entered on Wednesday, while Trump intensified his campaign to reorganize world trade in favor of the United States. Europe quickly retaliated.
Trump’s plans for prices – and their implementation of their back and forth since he took office in January – have upset the industry of energy and busy companies and investors. The concerns that the increase in costs revive inflation and that the sour feeling of consumers can announce an American recession, has caused a dive of the stock markets.
During a conference on grains Tuesday in Carlsbad, California, the news of Trump and Aluminum Trump prices in Canada attracted the groans of the Salle of Corporate Agriculture Managers, Transformers and Traders. The rhythm of the whip of policy changes that affect their industry has made the last six weeks seem much longer, have told Reuters a lot.
“Almost everyone in the economy has trouble understanding wild fluctuations in Washington policies and their implications for daily decisions,” said Stephen Dover, chief market strategist at the director of assets Franklin Templeton.
The constant topping on prices is paralyzing industries. Motor manufacturers, for example, are unable to plan while there is a 25% price threat on components made in Canada or Mexico.
“No reasonable automobile leader can make such investments if the expected yields can be destroyed after a pen,” said Dover.
Germany Porsche said Wednesday that it assesses how it could transmit to consumers the cost of possible prices – which should be 25% for American imports from Europe – without putting pressure on its margins. This implies that prices could be increased to compensate for any drop in unit sales.
“For the moment, we hope that there are solutions that will lead to a reasonable pricing regime between the regions,” said Porsche’s financial director Jochen Breckner during a press call.
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Two adults South Korean Steelmakers said they were considering options, including possible investments in operations in the United States, metal prices.
Canada Algoma Steel has interrupted Canada steel exports to the United States until Thursday when Canadian ministers are scheduled to meet their American counterparts in Washington. CEO Michael Garcia described the prices of “very concern”.
Speaking on French television hours before the entry into force of aluminum prices, the CEO of Airbus, Guillaume Faury, warned against a commercial “conflagration” while the world descends in tit-tray measures.
“Some of my suppliers can be affected and we are starting to see disturbances,” he said, adding: “We are in a trade war and when a trade war begins, it tends to maintain and eat.”
Until now, the aerospace industry has not experienced a significant direct impact, but many of its suppliers are in Mexico, Canada and China, which have been targeted by previous duties or tariff warnings.
JPMorgan’s chief economist Bruce Kasman said he had seen 40% of American recession this year, which would reach 50% if Trump followed threats to impose reciprocal rates from April. He also warned of sustainable damage to the United States as an investment destination if the administration is undergoing public governance.
Asked about a recession resulting from his trade policies, Trump said on Tuesday: “I don’t see it at all.” On Monday, he refused to rule on the first.
Revenues from the German sports clothing manufacturer Puma and the owner of Zara Inditex underlined the concerns that trade in trade begins to limit American expenses. Puma’s actions, which highlighted disputes as a challenge and announced job cuts, have lost almost a quarter of their value.
France, Spain and Italy have all asked that the European Commission excluded wine and spirits from the list of targeted American goods with prices, said a large European spirits producer on Wednesday. EU prices on American minds such as Bourbon whiskey will be “devastating” for the alcohol industry, commercial associations said on both sides of the Atlantic.
The actions of American beauty companies, including Estee Lauder, fell after a French cosmetics industry said that there was a “enormous” risk of reprisals by the United States after the EU declared that it would impose prices for American imports, including makeup.
According to the LSEG, more than 900 of 1,500 American companies have mentioned prices on profits calls or during investor events since the start of the year.
Prices already lead the prices of aluminum users in the United States to record heights.
Wednesday data has shown that American consumer prices have increased less than expected in February, although import prices should increase the costs of most goods in the coming months.
The German distributor of Brenntag chemicals warned that 2025 will be another difficult year, shaped by economic and political uncertainty and moderate economic growth worldwide.
CEO Christian Kohlpaintner said that the “confusing and impenetrable” situation made it difficult to manage a business. The Association of Germany’s chemicals said on Wednesday that it did not expect any recovery this year.
“The big risk is that companies stop spending and also the consumer, also hides purchases,” said Justin Onuekwusi, investment director of the investment company St. James’s place.