China’s service sector hit by trade war; Ford predicts $1.5bn profit hit from Trump tariffs – business live
Rolling coverage of the latest economic and financial newsTrump’s foreign film tariffs could ‘wipe out’ UK movie industry, ministers toldAmerica’s car industry is calculating the cost of the trade wars.Overnight, Ford Motor suspended its annual guidance, due to “tariff-related uncertainty”, and estimated new tariffs would cost it about $1.5bn (£1.1bn) of profits this financial year.“It’s still too early to fully understand our competitors’ responses to these tariffs,”“It’s clear, however, that in this new environment, automakers with the largest U.S. footprint will have a big advantage.”Given material near-term risks, especially the potential for industrywide supply chain disruption impacting production, the potential for future or increased tariffs in the U.S., changes in the implementation of tariffs including tariff offsets, retaliatory tariffs and other restrictions by other governments and the potential related market impacts, and finally policy uncertainties associated with tax and emissions policy, the company is suspending guidance.The slowdown in business activity growth reflected the trend seen for new business. Disruptions to goods trade amid fresh tariffs had negatively impacted some service providers in April, according to anecdotal evidence, and led to the slowest rise in overall new work for 28 months.New export business increased only fractionally, with some firms noting improved foreign demand amid rising tourism activity. Continue reading...
Rolling coverage of the latest economic and financial news
America’s car industry is calculating the cost of the trade wars.
Overnight, Ford Motor suspended its annual guidance, due to “tariff-related uncertainty”, and estimated new tariffs would cost it about $1.5bn (£1.1bn) of profits this financial year.
“It’s still too early to fully understand our competitors’ responses to these tariffs,”
“It’s clear, however, that in this new environment, automakers with the largest U.S. footprint will have a big advantage.”
Given material near-term risks, especially the potential for industrywide supply chain disruption impacting production, the potential for future or increased tariffs in the U.S., changes in the implementation of tariffs including tariff offsets, retaliatory tariffs and other restrictions by other governments and the potential related market impacts, and finally policy uncertainties associated with tax and emissions policy, the company is suspending guidance.
The slowdown in business activity growth reflected the trend seen for new business. Disruptions to goods trade amid fresh tariffs had negatively impacted some service providers in April, according to anecdotal evidence, and led to the slowest rise in overall new work for 28 months.
New export business increased only fractionally, with some firms noting improved foreign demand amid rising tourism activity. Continue reading...
