Jun 18, 2018

Go deeper: The U.S. industries hit hardest by a China trade war

China to take necessary measures against U.S. protectionism. (Photo by VCG/VCG via Getty Images)

China's latest round of retaliatory tariffs, in response to the Trump administration's new tariffs on $50 billion worth Chinese goods, will directly hit 659 U.S. goods worth $34 billion, with more tariffs to come.

The big picture: The goods affected are mainly agriculture and energy commodities that employ rural parts of the U.S., with crude oil, coal producers, and farmers being hit the hardest.

The losers:

  • Crude oil. Fears of trade war put pressure on oil prices. U.S. crude exports to China have helped relieve the pressure from OPEC and Russia exports with its rising from its wave of production from the past three years. "Investors expect the spat to come at the expense of U.S. oil firms, pulling down the share prices of ExxonMobil and Chevron by 1%-2% since Friday, while U.S. crude oil prices fell by around 5%," per Reuters.
  • U.S. coal producers. U.S. coal exports boosted 61% in 2017 as shipments to Asia more than doubled. China is looking to alternative suppliers like Brazil.
  • Agricultural exports such as soybeans, sorghum, oranges, seafood, pork, poultry and beef. Also, U.S. farmers who buy their supplies and machinery overseas.
  • Whiskey. China does not import a lot of it, but 70% of its imported spirits is whiskey like Brown-Forman Corp, the maker of Jack Daniel's.
  • U.S. carmakers. Ford has sold 338,386 cars in China this year. Though that is down 22% from last year, newly implemented tariffs won't necessarily help.

What they're saying:

  • American Apparel & Footwear Association CEO Rick Helfenbein said in a statement: "China previously identified almost $1 billion worth of American cotton exports to China as a target, which will hurt American farmers and U.S. textile manufacturers, and add costs to our supply chains."
  • Airplane manufacturer Boeing is reviewing the possible effects of the tariffs, said Boeing spokesperson Charles Bickers. Boeing garnered almost 13% of its 2017 revenues from China.
  • Ford released a statement saying that the company, "Wants to encourage both governments to work together through negotiation to resolve issues between these two important economies."

Be smart: The U.S. threatened $100 billion more tariffs on Chinese goods. That could potentially affect more than $500 billion worth of products Americans buy from China, reports the New York Times.

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Mass shooting in Milwaukee: What we know so far

Milwaukee Mayor Tom Barrett in 2012. Photo: John Gress/Corbis via Getty Images

Six people died in a shooting at the Milwaukee Molson Coors brewery complex on Wednesday, including the shooter, Mayor Tom Barrett told reporters at an evening press conference with local police.

What's happening: Police said "there is no active threat" just before 6 pm ET, but noted the scene remains active. Police chief Alfonso Morales told reporters that officers have "more than 20 buildings we have to secure" at the complex and they do not currently have all employees accounted for, as more than 1,000 were at the complex during the shooting.

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Live updates: CDC confirms possible community spread of coronavirus

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens.

U.S. clinicians have found the novel coronavirus in a person who did not recently return from a foreign country nor have contact with a confirmed case, the CDC said Tuesday.

The big picture: COVID-19 has killed more than 2,700 people and infected over 81,000 others. By Wednesday morning, South Korea had the most cases outside China, with 1,261 infections. Europe's biggest outbreak is in Italy, where 374 cases have been confirmed.

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Trump assigns Pence to lead U.S. coronavirus response

Photo: ANDREW CABALLERO-REYNOLDS/AFP via Getty Images

President Trump announced at a press briefing Wednesday evening that he'll be putting Vice President Mike Pence in charge of leading the administration's response to the coronavirus.

The big picture: In the wake of a market sell-off and warnings from health officials that there's a real threat of the coronavirus spreading in the U.S., Trump sought to reassure the nation and Wall Street that the U.S. is "ready" for whatever comes next.

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