Trump to restore tariffs on Brazil, Argentina

US President Donald Trump. (Reuters)
Updated 02 December 2019

Trump to restore tariffs on Brazil, Argentina

  • Emerging market stocks and the highly sensitive Mexican peso slid to session lows following President Donald Trump’s vow

WASHINGTON: US President Donald Trump on Monday said he would immediately restore tariffs on US steel and aluminum imports from Brazil and Argentina, prompting at least one counterpart to vow talks with the Republican president.

Emerging market stocks and the highly sensitive Mexican peso slid to session lows following Trump’s vow, which came in an early morning post on Twitter that gave no other details on the planned trade action.

“Brazil and Argentina have been presiding over a massive devaluation of their currencies, which is not good for our farmers. Therefore, effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the US from those countries,” Trump wrote.

Brazil’s President Jair Bolsonaro, an avowed Trump fan who has actively sought closer US ties, said he could speak directly with the American leader and that he would also discuss Trump’s declaration with Brazil’s economy minister.

Trump on Monday also urged the Federal Reserve to prevent countries from gaining an economic advantage by devaluing their currencies.

“The Federal Reserve should likewise act so that countries, of which there are many, no longer take advantage of our strong dollar,” Trump tweeted. “Lower Rates & Loosen — Fed!”

Trump has repeatedly urged the US central bank to lower rates to below zero, arguing that negative rates in Europe and elsewhere give those countries a competitive advantage.

However, Fed policymakers have been reluctant to take the unorthodox policy steps tried by other global central banks. The US central bank’s policymaking committee holds its next meeting on Dec 10-11.


China's aviation regulator raised concerns with Boeing on 737 MAX design changes

Updated 12 December 2019

China's aviation regulator raised concerns with Boeing on 737 MAX design changes

  • China is reviewing the airworthiness of the plane
  • China was first country to ground plane in March

BEIJING: China’s aviation regulator raised “important concerns” with Boeing Co. on the reliability and security of design changes to the grounded 737 MAX, it said on Thursday, but declined to comment on when the plane might fly again in China.
China is reviewing the airworthiness of the plane based on proposed changes to software and flight control systems according to a bilateral agreement with the United States, Civil Aviation Administration of China (CAAC) spokesman Liu Luxu told reporters at a monthly briefing.
He reiterated that for the plane to resume flights in China, it needed to be re-certified, pilots needed comprehensive and effective training to restore confidence in the model and the causes of two crashes that killed 346 people needed to be investigated with effective measures put in place to prevent another one.
China was the first country to ground the 737 MAX after the second crash in Ethiopia in March and had set up a task force to review design changes to the aircraft that Boeing had submitted.
The US Federal Aviation Administration (FAA) will not allow the 737 MAX to resume flying before the end of 2019, its chief, Steve Dickson, said on Wednesday.
Once the FAA approves the reintroduction into service, the 737 MAX can operate in the United States, but individual regulators could keep the planes grounded in other countries until they complete their own reviews.
“Due to the trade war, the jury is still out on when China would reintroduce the aircraft,” said Rob Morris, Global Head of Consultancy at Ascend by Cirium.
Chinese airlines had 97 737 MAX jets in operation before the global grounding, the most of any country, according to Cirium Fleets Analyzer.