Chinese trade negotiators suddenly canceled a visit to meet U.S. farmers after they wrapped up trade talks in Washington this week.Marketsread more
The Pentagon will deploy U.S. forces to the Middle East on the heels of the attack on Saudi Arabian oil facilities, United States Secretary of Defense Mark Esper announced...Defenseread more
President Trump also said he is "not looking for a partial deal" with Beijing, moving away from his suggestion last week that he would consider an "interim deal."Politicsread more
Progress on trade talks will determine how far market will move above new highs.Trader Talk with Bob Pisaniread more
"Sure, the trade war's taking its toll on business ... it's just not taking its toll where it was supposed to," Jim Cramer says.Mad Money with Jim Cramerread more
Joe Biden called on President Donald Trump Friday to release the transcript of a call with a foreign leader that is the subject of a whistleblower complaint. Biden described...Politicsread more
For investors taking a breather from the chaos in August, buckle up as the market is about go crazy again, Goldman Sachs warned.Marketsread more
Palantir Technologies is targeting a valuation of at least $26 billion in a private fundraising round, the first for the Peter Thiel-backed data analytics startup in four...Wall Streetread more
Michael Pack, a conservative filmmaker linked to Steve Bannon, saw at least $1.6 million in donations from his nonprofit sent into the coffers of his independent production...Politicsread more
The New England Patriots released Antonio Brown just 11 days after signing the wide receiver. The NFL Super Bowl champion team initially had kept him in the face of a rape...Sportsread more
A tour bus carrying Chinese-speaking tourists crashed near a national park in southern Utah, killing at least four people and critically injuring up to 15 others, authorities...U.S. Newsread more
Beijing has threatened fresh taxes on 106 U.S. produced goods. China's move is viewed as a response to President Donald Trump's list of Chinese imports that the U.S. is taking aim at. China already has a 25 percent tax on all globally imported cars and is now threatening an additional 25 percent hike for U.S.-built vehicles.
Analysts at investment firm Evercore ISI said Wednesday that a "blunt conclusion" was that a 25 percent additional auto tariff would generate a $1.73 billion impact this year on German auto firms BMW and Mercedes owner, Daimler. Thus, the current trade spat looks to be drawing in the top three of the world's largest economies: the U.S., China and now the European Union.
In terms of a negative impact, Evercore claimed that BMW would account for the lion's share, accruing a $965 million hit in 2018. To get to that figure the analysts calculated that BMW will generate almost $4 billion worth of 2018 sales from cars built in the U.S. and then shipped to China. The analysis assumed a transaction price of $60,000 per car.
BMW Group, who sold almost 2.5 million cars globally in 2017, was not immediately available for comment when contacted by CNBC.
In the case of Daimler, the 2018 cost was put at $765 million, based on 51,000 vehicles being exported to China. The analysts again assumed an average transaction price of $60,000 and an annual revenue of just over $3 billion. Daimler told CNBC it would not comment on market speculation or ongoing negotiations between China and the U.S. The firm did add that it was "monitoring the situation closely."
The U.S. firm Tesla doesn't provide numbers of deliveries to China but does offer revenue data, suggesting sales worth around $2 billion in 2017. According to Evercore, Tesla could, therefore, be a big loser with tariff impacts potentially reaching $507 million in 2018.
Tesla has reportedly agreed with Chinese officials to build a plant in Shanghai but nothing concrete has yet been announced, with some suggesting that Beijing wants to impose a joint venture arrangement.
The U.S.-based firms Fiat Chrysler and Ford already have Chinese manufacturing plants in place and because of this they are seen as relatively immune to the latest salvo of trade threats. Evercore estimates that Ford would import just under 19,000 cars to China this year at an average transaction price of $32,000. The dollar impact from any fresh tariff would, therefore, total just $151 million.
For Fiat Chrysler Autos, the situation is even less dramatic. Evercore suggested that in 2018 the negative dollar impact would be around $80 million. According to Evercore, GM will export no cars to China from the United States in 2018.