Measure comes after Donald Trump increases rate on Chinese products to 125%
Luana Franzão
São Paulo, SP (Folhapress)-China responds to the US with new rates, European Union seeks new friends after arguing with the US and other market highlights on Friday (11).
Poking the jaguar with short stick
The subject of the phrase “poking the jaguar with a short stick” can be both China and the United States.
Donald Trump’s tariffs on Chinese product imports reached 145%. The result is a sum of the rate announced earlier this year, of 20%, and the latest, updated yesterday, 125%.
China responded today. It raised the US and Chinese leader Xi Jinping to 125%, spoke for the first time about the conflict with the Americans.
“There is no winner in a tariff war, and going against the world will lead to isolation,” he said.
Blouses in the target
In an executive order released yesterday, the US President ordered the increase in China’s lower value package import tariff, such as purchases at Shein and Temu.
Packages that carry less than US $ 800 (R $ 4,700) will suffer from taxes of 120%, 30 percentage points above 90% announced before.
Also, it imposed a charge of US $ 100 (R $ 589) per postal item between May 2, June 1, and US $ 200 (R $ 1.7 thousand) from this date.
Even in the cinema
The nation commanded by Xi Jinping has announced that it will limit the importation of Hollywood films in the country – a measure seen as symbolic by analysts.
“I’ve heard worse things,” said Trump, laughing, commenting on the decision of the opponents.
Surrounding all sides
The Chinese also try to make the situation of the American economy worse by pressing the interest market.
They hold many US government titles, known as “Treasuries,” and have sold an important amount of them in recent days.
This self-off of government bonds can make it harder for the US government to roll its debt in the future. Here comes a big dose of economies, so let’s go slowly.
Price and interest move in opposite directions. By selling titles, Chinese reduce their prices and increase pressure on long -term interest interest. This makes you expensive financing and loans there.
“Rolling” a debt means creating a new one to pay off an old pending. This is what the United States do with its titles. With the interest market under pressure, it is more expensive to issue debt securities – they need to pay a higher award to attract investors.
Thus, China Atazana a little more life from Trump. They should not sell a very important amount of titles, as this would reduce the gains of their own wallet, but enough to irritate Americans.
At the Atlantic side
The spirits are calmer between the United States and the European Union, longtime allies. After moments of tension in recent months, the brothers have stopped fighting – for now.
Donald Trump, who had imposed a 20% tariff to imports from the US economic bloc countries, reduced them to 10% for 90 days. This gives investors time to recalculate their routes and, above all, try to negotiate the extinction of the rate.
Coming out of the ring
The EU, which had promised retaliation, gave up the idea. The answer that had been approved on Wednesday was a 25% rate to US imports. They would come into force next week.
Some countries in the bloc suffer more from the tariffs imposed on exports of steel, aluminum and vehicles. Think of a car automaker and she is probably European.
Reasons to get angry with Trump were not lacking. However, the block considered smarter to retreat.
The president of the European Commission, Ursula von der Leyen, announced a 90 -day break in the approved plan – identical to the truce released by Americans.
Shrimp that sleeps, the wave takes
And the Europeans don’t want to lose the point. Realizing that diplomatic relations are increasingly tense, they move to reduce their dependence on trade with the US.
The block negotiates a free trade agreement with the United Arab Emirates, according to what was reported by von der Leyen yesterday.
– A free trade agreement substantially reduces tariff and bureaucratic barriers between two or more countries.
-Europe is interested in the flagship of the EAU export agenda, oil and natural gas;
– With the invasion of Ukraine, the Europeans launched a series of sanctions to Russia, which was one of their most important sources of these commodities. It makes sense to look for new partners.
– EAU, on the other hand, want to know the luxury goods at lower prices. Cars, jewelry, drinks, food, clothing and other premium products are produced in Europe.
Luxury to square
Prada wants to become the largest Italian luxury fashion company. For this, it is swallowing the rivals one by one. The first victim was Versace, whose purchase by the aspiring Titan was announced yesterday, for $ 1.38 billion ($ 8.1 billion).
At a time when there is doubts about what will be the future of the luxury market, all eyes turn to Milan, fashion capital.
Repetition
This is the second time that Versace has been bought by a larger group. In 2018, Capri Holding Ltd. had paid $ 1.8 billion ($ 10.6 billion) for her – the Prada is paying cheaper.
With the acquisition, the brand returns to Italian lands. The previous owner owns names like Michael Kors and concentrates operations in the US and the UK.
Entering the game
Prada wants to compete with luxury conglomerates, which have dictated the fashion business model in recent years.
The most prominent example is the LVMH group, owner of Louis Vuitton, Christian Dior, Givenchy, Fendi, Celine, Kenzo, Marc Jacobs, Loewe, Bulgari, Tiffany & Co… finally, you already understand you are giant.
Although it is one of the biggest names in fashion, Prada has to eat a lot of rice and beans to hit the commanded by one of the richest men in the world, Bernard Arnault.
– LVMH market capitalization is approximately US $ 291 billion (R $ 1.7 trillion), while Prada’s is US $ 15.8 billion (R $ 93 billion).
Another competitor in the ring is Kering, owner of Gucci. It is larger than the Prada and smaller than the LVMH.
National pride?
Italy is responsible for global production of 50% to 55% of personal luxury goods, but does not have a titan that we mentioned. The union of two brands of Milan can give traction to Versace’s business, which have been on the tightrope for years.
[A ambição da Prada] It is a significant step in a market dominated by French groups. That’s exactly what many Italians expected, ”said Achim Berg, fashion and luxury consultant.
She can go after acquiring companies like Armani and Dolce & Gabbana, based in Milan, among the few in Italy that are still totally familiar and have the capital closed.
