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Europe bracing for another Trump presidency: The EU is weighing options to appease incoming US President Donald Trump as it braces for US tariffs and other trade threats as well as difficult discussions on how to handle China, Reuters reports.
REMEMBER- Trump warned that the EU would have to “pay a big price” for not buying enough American exports. A second US presidential term for Trump could also usher in a 10% tariff on all imports into the US and a 50% tariff on goods from top trading partner China. The tariffs would likely spark retaliation from US trading partners — even political allies such as countries in Europe, Japan, South Korea, and India — who could place tariffs of their own on US imports.
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The expected impact: Major car producers Germany and Italy — the second largest EU exporter to the US — will likely be hit the hardest. Along with the direct impact of tariffs on its sluggish economy, the EU could suffer a second setback if Chinese producers, facing higher barriers to the US market, redirect more of their exports to Europe. In reaction to Trump’s 2018 tariffs on EU steel, the EU implemented safeguard measures to restrict zero-tariff steel imports into its markets. However, these measures are set to expire in June 2026, with no possibility of extension under EU or WTO regulations.
Now what? The EU will seek to contact the future Trump administration before his inauguration in January and is already mulling ways of cooperation that could ease or remove the tariffs, including potentially ramping up imports of liquefied natural gas (LNG) from the US.
Going against China? Some EU diplomats propose that China, where US policy is expected to become more stringent, could be another area for collaboration. However, the EU’s desire to adhere to global trade rules and its aim to “de-risk” rather than completely sever ties with China could make negotiations challenging.
Maersk orders new LNG containerships in China: Danish shipping giant AP Moller-Maersk has ordered 10 liquified natural gas (LNG) dual-fuel TEU containerships that will be manufactured at Yangzijiang Shipbuilding in China, Offshore Energy reports. The Neo panamax containerships will be delivered between 2027 and 2029.The vessels have a nominal capacity of 17k TEUs and a price tag of USD 202 mn each.
Background: Maersk announced in August that it is in the process of finalizing newbuilding orders and time-charter agreements for dual-fuel vessels to align with its planned fleet renewal rate of approximately 160k TEUs annually. The orders are anticipated to include 50-60 containerships, consisting of both owned and chartered dual-fuel vessels, totaling 800k TEUs.
OTHER STORIES WORTH KNOWING THIS MORNING-
- Maersk + Syngenta extend 4PL partnership: Maersk has extended its fourth-party logistics (4PL) partnership with agriculture company Syngenta Crop Protection for an additional five years. (Statement)
- EU to close trade agreement with Mercosur by year’s end: The EU expects to conclude a trade agreement with South America’s Mercosur bloc by the end of the year, EU crisis management commissioner Janez Lenarcic told Reuters.
