With a ring of the opening bell, Uber began picking up passengers as a newly minted public company Friday and investors waited to bet on a service with huge potential, but a long way from turning a profit.

Shares in the ride-hailing giant were sold in an initial public offering for $45 each, raising $8.1 billion, but it will take several hours for new investors to show how much they’re interested. Officials expect trading to start around 11:30 a.m.

CEO Dara Khosrowshahi and other company officials stood on a balcony above the New York Stock Exchange and clapped as the bell rang to signal the start of the day’s trading.

The IPO price on Thursday came in at the lower end of Uber’s targeted price range of $44 to $50 per share. The caution may have been driven by escalating doubts about the ability of ride-hailing services to make money since Uber’s main rival, Lyft, went public six weeks ago.

Jitters about an intensifying U.S. trade war with China have also contributed to the caution. Stocks opened broadly lower on Wall Street after the two countries failed to reach a deal before Friday’s tariff deadline.

Even at the tamped-down price, Uber now has a market value of $82 billion — five times more than Lyft’s.

Before the opening bell, Khosrowshahi tried to manage expectations for the first day of trading.

“Today is only one day. I want this day to go great, but it’s about what we build in the next three to five years,” he said in an interview with CNBC. “And I feel plenty of pressure to build over that time frame.”

Uber, Khosrowshahi said, is dealing with a potential $12 trillion market so “it makes sense to lean forward.”

He predicted that younger generations will not want to own cars. “I think more and more you’re going to have transportation on demand services, essentially de-bundle the car. They’re going to want to push a button and get the transportation they want.”

Austin Geidt, one of Uber’s first employees, rang the opening bell. She joined the company nine years ago and is now head of strategy for the Advanced Technologies Group, working on autonomous vehicles. Over the years, she helped to lead its expansion in hundreds of new cities and countries.

Both Uber co-founders Travis Kalanick and Garrett Camp were present at the exchange but absent from the podium during the bell ringing.

A black Uber logo was hanging over exchange floor and bright green Uber Eats trucks were parked outside. Men in black T-shirts and hats with the Uber Eats logo handed out drinks and snacks on the trading floor while photos of sedans, helicopters and Jump bikes were shown on screens above.

No matter how Uber’s stock swings Friday, the IPO has to be considered a triumph for the company most closely associated with an industry that has changed the way millions of people get around. That while also transforming the way millions of more people earn a living in the gig economy.

Uber’s IPO raised another $8.1 billion as the company it tries to fend off Lyft in the U.S. and help cover the cost of giving rides to passengers at unprofitable prices. The San Francisco company already has lost about $9 billion since its inception and acknowledges it could still be years before it turns a profit.

That sobering reality is one reason that Uber fell short of reaching the $120 billion market value that many observers believed its IPO might attain.

Another factor working against Uber is the cold shoulder investors have been giving Lyft’s stock after an initial run-up. Lyft’s shares closed Thursday 23% below its April IPO price of $72.

Uber “clearly learned from its `little brother’ Lyft, and the experience it has gone through,” Wedbush Securities analysts Ygal Arounian and Daniel Ives wrote late Thursday.

Despite all that, Uber’s IPO is the biggest since Chinese e-commerce giant Alibaba Group debuted with a value of $167.6 billion in 2014.

“For the market to give you the value, you’ve either got to have a lot of profits or potential for huge growth,” said Sam Abuelsamid, principal analyst at Navigant Research.

Uber boasts growth galore. Its revenue last year surged 42% to $11.3 billion while its cars completed 5.2 billion trips around the world either giving rides to 91 million passengers or delivering food.

Uber might be even more popular if not for a series of revelations about unsavory behavior that sullied its image and resulted in the ouster of Kalanick as CEO nearly two years ago.

The self-inflicted wounds included complaints about rampant internal sexual harassment, accusations that it stole self-driving car technology, and a cover-up of a computer break-in that stole personal information about its passengers. What’s more, some Uber drivers have been accused of assaulting passengers, and one of its self-driving test vehicles struck and killed a pedestrian in Arizona last year while a backup driver was behind the wheel.

Uber hired Khosrowshahi as CEO to replace Kalanick and clean up the mess, something that analysts say has been able to do to some extent, although Lyft seized upon the scandals to gain market share.

Kalanick remains on Uber’s board and while he kept a relatively low profile on Friday, he can still savor his newfound wealth. At $45 per share, his stake in Uber will be worth $5.3 billion. Hundreds, if not thousands, of other Uber employees are expected to become millionaires in the IPO.

Meanwhile, scores of Uber drivers say they have been mistreated by the company as they work long hours and wear out their cars picking up passengers as they struggle to make ends meet. On Wednesday, some of them participated in strikes across the United States to highlight their unhappiness ahead of Uber’s IPO but barely caused a ripple. A similar strike was organized ahead of Lyft’s IPO to the same effect.

In its latest attempt to make amends, Uber disclosed Thursday that it reached a settlement with tens of thousands of drivers who alleged they had been improperly classified as contractors. The company said the settlement covering most of the 60,000 drivers making claims will cost $146 million to $170 million.

Now, Uber will focus on winning over Wall Street.

Uber may be able to avoid Lyft’s post-IPO stock decline because it has a different story to tell than just the potential for growth in ride-hailing, says Alejandro Ortiz, principal analyst with SharesPost. Uber, he said, has plans to be more than a ride-hailing company by being all things transportation to users of its app, offering deliveries, scooters, bicycles and links to other modes of transportation including public mass transit systems.

“Whether or not that pitch will work kind of remains to be seen. It’s nearly impossible to tell now,” he said. “Obviously the risk to the company now is they have a lot more shareholders that they have to convince.”

 

U.S. President Donald Trump began Friday issuing a series of tweets focusing on trade with China, as the United States increased tariffs from 10% to 25% on $200 billion worth of Chinese imports.

“We have lost 500 Billion Dollars a year, for many years, on Crazy Trade with China. NO MORE!”

Trump went on to tweet that trade talks with China are proceeding in a “congenial manner” and “there is absolutely no need to rush – as Tariffs are NOW being paid to the United States by China of 25% on 250 Billion Dollars worth of goods and products. These massive payments go directly the Treasury of the U.S….”

The president noted plans for the U.S. to level tariffs of 25% on the “remaining” $325 billion, pointing out that Washington sells Beijing about $100 billion worth of goods, and with the more than $100 billion in tariffs received, the U.S. will buy the agricultural products from U.S. farmers and send it as humanitarian assistance to nations in need. He also goes on to chide China for trying to “redo” the deal at the last minute after the terms already had been set.

China said Friday it “deeply regrets” the increased tariffs and will take the “necessary countermeasures,” without giving any details.

The increases are going into effect in the midst of talks between Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin.

Thursday, U.S. and Chinese trade negotiators ended the first of two days of talks aimed at saving a trade deal even as President Donald Trump said the new “very heavy tariffs” on Chinese products” would go ahead.

The White House said late Thursday, “Ambassador Lighthizer and Secretary Mnuchin met with President Trump to discuss the ongoing trade negotiations with China. The Ambassador and Secretary then had a working dinner with Vice Premier Liu He, and agreed to continue discussions tomorrow morning at USTR.”

Liu He is leading the Chinese negotiating team for the talks which threatened to collapse after the Trump administration accused Beijing of backtracking.

“We were getting very close to a deal, then they started to renegotiate the deal,” said Trump earlier in the day at the White House.

“It was their idea to come back” and resume discussion ahead of the Friday deadline for additional tariffs, the president said.

Trump said he had also received “a beautiful letter” from Xi that expressed a sentiment of “let’s work together.”

Trump told reporters that he happens “to think tariffs for our country are very powerful,” in line with a view he has been expressing that such increased punitive taxes would be good for America’s economy.

Some economists, however, predict such tariffs would cut in half U.S. economic growth seen in the first quarter of this year.

 

The Trump administration hopes the new tariffs will force changes in China’s trade, subsidy and intellectual property practices.

 

The two sides have been unable to reach a deal due, in part, to differences over the enforcement of an agreement and a timeline for removing the tariffs.

Trump says despite being poised to impose the additional tariffs, he is not looking for a trade war with Beijing.

“I want to get along with China,” he told reporters Thursday.

A strike by Uber and Lyft drivers in cities across the United States this week caused barely a ripple to passengers looking to catch a ride, highlighting the challenges in launching a labor movement from scratch in an industry that is by nature decentralized.

Activists and others involved in the labor movement are still declaring it a success. It grabbed headlines, trended on Twitter and won the support of several Democrats running for president. The action was also closely watched by labor organizers, who are brainstorming about ways to build worker power in the 21st-century economy.

Drivers say they wanted to draw the attention of the public, technology investors and political leaders to their plight: low pay and a lack of basic rights on the job.

“The goal is to bring awareness to the incredible disregard for workers,” said Lyft driver Ann Glatt, who helped organize the San Francisco strike and protest outside Uber headquarters.

Starting to organize

App-based workers are thought to comprise a small fraction of the economy, but there are still millions of people making a living in gig work. Uber alone says it has nearly 4 million drivers, while Lyft has more than 1 million.

In pockets around the country, workers are starting to organize themselves, often with the help of workers’ rights groups and labor unions. In Silicon Valley, a workers’ rights group established Gig Workers Rising, which helped with Wednesday’s strike. In New York state, the AFL-CIO is pushing the Legislature to take steps to protect workers who get jobs through digital platforms. A campaign that started in Washington state this year pressured shopping service Instacart to stop counting tips toward workers’ base pay, and even won them back pay.

Among the Lyft and Uber drivers’ top issues are pay, a lack of transparency that makes it difficult to understand how much they were paid and why, and no due process when they are “deactivated,” or barred from the service.

The drivers and workers at other app-based platforms such as Instacart or food delivery service DoorDash are classified by the companies as independent contractors, leaving them without the same safeguards traditional workers receive, such as minimum wage, unemployment insurance, workers compensation and health and safety protections.

Uber settlement

Uber on Thursday disclosed ahead of its Friday IPO that it had reached an agreement to settle with tens of thousands of drivers who dispute the company’s contention that they are independent contractors. It said the payments and attorneys’ fees could reach $170 million.

Uber maintains the drivers are independent because they choose whether, when and where to provide services, are free to work for competitors and provide their own vehicles. It said it has taken steps to make drivers’ earnings more consistent and to improve working conditions, including by providing discounts on gasoline and car repairs and tuition reimbursement for some drivers.

Lyft also pushed back on the complaints, saying its drivers’ hourly earnings have increased 7% in the last two years, that on average, they earn more than $20 per hour and that three-quarters of its drivers work fewer than 10 hours per week.

Legislation push

In California, labor leaders are pushing legislation to classify many gig workers and other independent contractors as regular employees, after a state high court ruling last year.

Nicole Moore is a Lyft driver and organizer with the Los Angeles-based group Rideshare Drivers United. This week’s action came out of a strike drivers held in Los Angeles in March to protest Lyft’s IPO and a cut in Uber’s reimbursement rate from 80 cents to 60 cents per mile. Drivers after that action wanted to do more, and this week’s protest was hatched.

A core group of about 25 drivers organized it, she said, with many of the other 4,300 driver members pitching in to help.

Drivers in different cities described how they spread the word. Some spoke to fellow drivers face-to-face in driver hotspots: airport parking lots, car washes and gas stations. They reached out to driver networks in different immigrant communities and took out targeted ads on Facebook and Google.

Organizing people who don’t work in the same job location can be difficult and requires new, tech-savvy approaches, said Rachel Lauter, executive director of the Seattle-based workers’ rights group Working Washington. The group has helped organize in industries such as fast food and domestic workers, and last year started talking to workers in the gig economy about what mattered to them.

Success vs. Instacart

Their efforts galvanized this year when Instacart changed its pay model and began counting tips toward its shoppers’ base pay. The group launched a campaign using text messages, Facebook, Reddit, online petitions and other digital tools to reach out to workers and customers to let them know about the change. They encouraged customers to give only a minimal tip to send a message of protest to the company then add a tip after delivery or tip in cash. They also created online calculators to help workers understand how much Instacart was actually paying them. They held Zoom conference calls where hundreds of Instacart workers and customers called in to coordinate.

The work paid off when Instacart in February announced a number of steps “to more fairly and competitively compensate” its workers, including leaving tips out of it when they calculate how much each worker will be paid.

Mario Cilento, president of the New York State AFL-CIO, said it isn’t fair that gig platforms don’t have to pay minimum wage, payroll taxes, unemployment insurance and other expenses that traditional employers pay.

“We must get ahead of this now,” Cilento said. “We liken it to where we were with the Fair Labor Standards Act in 1938, when they came up with the eight-hour day, and child labor laws and overtime pay.” 

The United States has increased tariffs from 10% to 25% on $200 billion worth of Chinese imports.

China on Friday said it “deeply regrets” the increased tariffs and will take the “necessary countermeasures” without giving any details.

The increases are going into effect amid talks between Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin.

On Thursday the U.S. and Chinese trade negotiators ended the first of two days of talks aimed at saving a trade deal even as President Donald Trump said the new “very heavy tariffs” on Chinese products would go ahead.

The White House said Thursday evening that “Ambassador Lightizer and Secretary Mnuchin met with President Trump to discuss the ongoing trade negotiations with China. The ambassador and secretary then had a working dinner with Vice Premier Liu He and agreed to continue discussions tomorrow morning at USTR.”

Talks on Friday

Liu He is leading the Chinese negotiating team for the talks, which threatened to collapse after the Trump administration accused Beijing of backtracking.

“We were getting very close to a deal, then they started to renegotiate the deal,” said Trump Thursday in the Roosevelt Room of the White House.

“It was their idea to come back” and resume discussion ahead of the Friday deadline for additional tariffs, the president said.

Trump said he had also received “a beautiful letter” from Xi that expressed a sentiment of “let’s work together.”

Trump told reporters that he happens “to think tariffs for our country are very powerful,” in line with a view he has been expressing that such increased punitive taxes would be good for America’s economy.

​Tariffs and economic growth

Some economists, however, predict such tariffs would cut in half the U.S. economic growth seen in the first quarter of this year.

Earlier officials in Beijing said they have “made all necessary preparations” if Trump followed through on the pledge to impose the new set of tariffs.

Chinese Commerce Ministry spokesman Gao Feng told reporters in Beijing Thursday that China will not bow to any pressure and warned it has the “determination and ability to defend its own interests.”

The ministry issued an earlier statement vowing to take any necessary countermeasures if the tax is implemented.

The Trump administration hopes the new tariffs will force changes in China’s trade, subsidy and intellectual property practices.

The two sides have been unable to reach a deal thanks, in part, to differences over the enforcement of an agreement and a timeline for removing the tariffs.

Trump says despite being poised to impose the additional tariffs, he is not looking for a trade war with Beijing.

“I want to get along with China,” he told reporters. 

The International Chamber of Commerce, the world’s largest business organization, has become the latest group to criticize a proposed change to Hong Kong law that would allow for criminal extradition to mainland China. 

In a scathing letter issued to legislators Wednesday, the ICC questioned why Hong Kong is fast-tracking such significant changes to its legal system with a limited public consultation, calling the move “most unbecoming in terms of public governance.” 

The ICC’s letter follows similar concerns echoed by the European Union, the American Chamber of Commerce, the Hong Kong Bar Association and US Consul General Kurt Tong. 

The bill was introduced in April and is set to be voted on in July by its semi-democratic legislature, in which the majority is held by pro-establishment legislators. 

If passed, it would allow the city to extradite to other jurisdictions where it lacks a permanent extradition agreement, including China and Taiwan, on a case by case basis. Chief Executive Carrie Lam has previously said that such changes would close legal “loopholes.”

​It follows a high profile murder case last year in which a Hong Kong man was accused of murdering his pregnant girlfriend while on holiday in Taiwan, where the autonomous Chinese city also lacks a long term extradition agreement. The government has said speed is necessary as the murder suspect, who is serving a prison sentence on related money laundering charges, could be released as early as October. 

The changes, however, and the speed at which they have been introduced have raised international concern about the future of Hong Kong’s legal system and its global reputation. 

Hong Kong, an autonomous special administrative region until 2047, has a dramatically different legal system from the mainland because of its former status as a British colony. Its strong rule of law has led dozens of multinational firms to make the city their Asia headquarters, although the ICC said this could change if the extradition law is put in place. 

“Enactment of the amendment bill would mean more people in Hong Kong will be put to risk of losing freedom, property, and even their life in future of being surrendered, than merely passing judgment on the convicted of the Taiwan murder case,” the ICC said, urging lawmakers to take more time on the bill. 

Earlier this week, the U.S. China Economic and Security Review Commission also added its concern to the growing list and said the extradition agreement could “create serious risks for U.S. national security and economic interests in the territory” and “pose increased risks for U.S. citizens and port calls in the territory.” 

It also said the new law could impact the 1992 US-Hong Kong Policy Act, which grants the city special trading privileges, different from mainland China. 

In late April, an estimated 130,000 Hong Kong residents participated in a protest against the extradition agreement, according to organizers, in the largest demonstration in years. Police estimates put the figure at closer to 23,000. 

Nike wants to meet your feet.

The sneaker seller will launch a foot-scanning tool on its app this summer that will measure and remember the length, width and other dimensions of customers’ feet after they point a smartphone camera to their toes. The app will then tell shoppers what size to buy each of its shoes in, which Nike hopes will cut down on costly online returns as it seeks to sell more of its goods through its websites and apps. 

 

But Nike will also get something it has never had before: a flood of data on the feet of regular people, a potential goldmine for the shoemaker, which says it will use the information to improve the design of its shoes. Nike mainly relies on the feet of star athletes to build its kicks.

“Nikes will become better and better fitting shoes for you and everyone else,” said Michael Martin, who oversees Nike’s websites and apps. 

 

Nike won’t sell or share the data to other companies, Martin says. And he says shoppers don’t have to save the foot scans to their Nike accounts. But if they do, they’ll only have to scan their feet once and Nike’s apps, websites and stores will know their dimensions every time they need to buy sneakers. Workers at Nike stores will also be equipped with iPods to do the scanning, replacing those metal sizing contraptions. 

The challenging part for Nike is convincing people they need to measure their feet in the first place. Most think they already know what their shoe size is, says Brad Eckhart, who was an executive at shoe store chain Finish Line and is now a principal at retail consultancy Columbus Consulting, 

 

But Nike says it gets half a million complaints a year from customers related to fit and sizing. And it admits what many shoppers have already suspected: Each of its shoe styles fit differently, even if they are in the same size. A leather sneaker may be tighter and require a bigger size. Knit ones may be more forgiving. And shoelaces can throw everything off.

 

Shoe size is “effectively a lie,” said Martin. “And it’s a lie that we’ve perpetuated.”

Matt Powell, a sports industry analyst at NPD Group Inc., says the tool might be most valuable for people who want to run or play basketball in their sneakers, since the wrong fit can cause injury. But Powell says most people buy sneakers just to walk around in.

Still, finding the right size is a problem for shoppers: “There really is no industry standard for what is a size 10,” Powell said. 

Orlando, Florida, had 75 million visitors last year as the theme park mecca continued to be the most visited destination in the United States

Orlando had 75 million visitors last year as the theme park mecca continued to be the most visited destination in the United States, tourism officials said Thursday.

Orlando in 2018 had 68.5 million domestic visitors, a year-to-year increase of 4.1%, and almost 6.5 million international visitors, a year-to-year increase of 5.4%.

The overall 4.2% increase over 2017 figures was slightly smaller than the previous year-to-year increase of 5%. But there was a robust return of international visitors, a segment that had softened in previous years.

The international improvement was driven by Latin American visitors, especially from Brazil and Mexico, said George Aguel, CEO of Visit Orlando, the area’s tourism marketing agency.

“When folks are thinking about what they can and can’t do, we try to market why this is a good place for them to come. We focus on the feeling you get when you come here,” Aguel said. “There really is no place in the country … where you have the ability to make a connection emotionally. We play a lot on the memories we create.”

Orlando has been in the middle of a years-long expansion of rides and hotel rooms.

Accommodation expansion is at a 20-year high. The metro area already has more than 120,000 hotel rooms, the second highest in the nation behind only Las Vegas.

Additionally, attractions at the area’s theme parks are opening at a break-neck pace.

In 2017, a new water park, Volcano Bay, opened at Universal Orlando, and a new section, Pandora-The World of Avatar, opened at Walt Disney World’s Animal Kingdom.

Last year, Disney World opened a Toy Story Land.

Disney World is opening a Star Wars-themed land in August, SeaWorld debuted a Sesame Street land this spring and Universal Orlando is opening a new Harry Potter-themed ride this summer.

“We think it will help us carry over in 2020,” Aguel said. “A lot of these things start to kick in the following year.”

“We’re starting that paperwork today” for imposing new “very heavy tariffs” on Chinese products,” U.S. President Donald Trump told reporters just hours before trade talks in Washington are to resume between officials of the world’s two largest economies. 

The United States is set to impose Friday an increase in tariffs from 10% to 25% on $200 billion worth of Chinese imports.

Vice Premier Liu He is leading the Chinese negotiating team for the talks which threatened to collapse after the Trump administration accused Beijing of backtracking.

“We were getting very close to a deal, then they started to renegotiate the deal,” Trump said Thursday in the Roosevelt Room of the White House. 

“It was their idea to come back” and resume discussions ahead of the Friday deadline for additional tariffs, the president said. 

Liu He, who is Chinese President Xi Jinping’s top economic adviser, is to sit down with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. 

Trump said he had also received “a beautiful letter” from Xi that expressed a sentiment of “let’s work together.” 

Trump told reporters that he happens “to think tariffs for our country are very powerful,” in line with a view he has been expressing that such increased punitive taxes would be good for America’s economy.

Some economists, however, predict such tariffs would cut in half U.S. economic growth seen in the first quarter of this year. 

Officials in Beijing say they have “made all necessary preparations” if Trump follows through on the pledge to impose the new set of tariffs. 

Chinese Commerce Ministry spokesman Gao Feng told reporters in Beijing on Thursday that China will not bow to any pressure, and warned it has the “determination and ability to defend its own interests.”

The ministry issued an earlier statement vowing to take any necessary countermeasures if the tax is implemented.

The Trump administration hopes the new tariffs will force changes in China’s trade, subsidy and intellectual property practices.

The two sides have been unable to reach a deal due, in part, to differences over the enforcement of an agreement and a timeline for removing the tariffs.

Trump says despite being poised to impose the additional tariffs, he is not looking for a trade war with Beijing. 

“I want to get along with China,” he told reporters. 

China says it has “made all necessary preparations” if the United States follows through on a pledge to impose a new set of tariffs on Chinese goods, as its chief trade negotiator arrives in Washington for another round of talks aimed at ending its trade war.

Vice Premier Liu He, President Xi Jinping’s top economic advisor, will sit down with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin Thursday, a day before tariffs increase from 10 percent to 25 percent on $200 billion worth of Chinese imports.

U.S. President Donald Trump set the Friday deadline to raise tariffs after the United States accused China of reneging earlier this week on commitments made during months of talks to end their trade war.

“They broke the deal. So they’re flying in. The vice premier tomorrow is flying in, but they broke the deal. They can’t do that. So they’ll be paying,” Trump told supporters at a rally in Florida.

Earlier Wednesday, Trump said he would be “happy” to maintain tariffs on Chinese imports, and added that Beijing would be mistaken if it hopes to negotiate trade later with a Democratic presidential administration.

Chinese Commerce Ministry spokesman Gao Feng told reporters in Beijing Thursday that China will not bow to any pressure, and warned it has the “determination and ability to defend its own interests.” The ministry issued an earlier statement vowing to take any “necessary” countermeasures if the tax is implemented.

The Trump administration hopes the new tariffs will force changes in China’s trade, subsidy and intellectual property practices.

The two sides have been unable to reach a deal due, in part, to differences over the enforcement of an agreement and a timeline for removing the tariffs.

It’s a little-known fact that Sweden was the first western country to recognize the government of Vietnam, in 1969, at a time when many states were wary of ruffling the feathers of their ally, the United States, which was fighting a war in the Southeast Asian country.

Sweden went on to become the biggest foreign donor in Vietnam, which faced international isolation in the 1980s leading up to the 1990s, when Washington lifted its economic embargo on Hanoi.

Now Stockholm and Hanoi are marking their 50 year anniversary with what they call a shift from aid to trade. Vietnam sees some potential pointers from Sweden, a small country with social democratic policies that is home to many companies people may not realize have Swedish roots: Skype, Spotify, and Ericsson, as well as Ikea, Volvo, and H&M.

Sustainable trade

The Crown Princess of Sweden, Victoria Ingrid Alice Desiree, brought a delegation to Hanoi this week to try some Vietnamese bun bo noodles and conical hats, as well as to promote commerce that is good for the environment.

“I would like to stress that sustainability and trade are not mutually exclusive,” the crown princess said, adding that, on the contrary, sustainable trade is the only option going forward.

That is in contrast to global trade after the first industrial revolution, when businesses did not mind burning fossil fuels and filling garbage dumps — known in economics as a classic externality, because the culprit does not suffer the direct impact of its pollution.

A different Kind of industrialization

As Vietnam industrializes, some hope it will do things differently from the west’s old polluting industries. It can join the “circular economy” that wastes fewer raw inputs, with more emphasis on putting materials back into the business process.

Swedish firms have been looking for ways to clean up their act. H&M, for example, allows shoppers to bring back clothes for recycling, although that can give them an excuse to consume even more new products.

The fashion retailer also aims to source from factories that treat and reuse wastewater. Ikea will ban single-use plastic from its stores by next year and find new uses for plastic so that it doesn’t end up in the ocean. The plastic efforts are an example of areas where big corporations may have a bigger impact than the individuals who have stopped using plastic straws and plastic bags to do their part.

A Swedish model

Vietnamese Deputy Prime Minister Pham Binh Minh said Sweden was a small country that turned to foreign trade and industrialized responsibly.

“That is a lesson Vietnam wants to learn from Sweden,” he said.

Relations between the two countries used to be underpinned by Sweden’s official aid money to Vietnam, money that went toward common goals like gender equality. The Swedish crown princess, for example, is next in line to the throne because her country revised a law that had restricted royal succession to males. In Vietnam, Sweden has supported equality programs in areas from agriculture, such as training female farmers to market their products, to Wikipedia, where there are more biographies of men than of women.

Business partners

But today the focus is changing from development assistance to business development. Instead of getting aid from Sweden, Vietnam is getting investment, whether it’s Spotify launching its music streaming app in the communist country in 2018, or Electrolux selling air conditioners and washing machines to the emerging middle class.

The change is also indicative of broader trends in Vietnam, generally shifting from cash assistance from foreign countries, to doing business with them. Among Vietnam’s many new trade deals is the European Union-Vietnam Free Trade Agreement, which Swedish officials also touted on their visit this week to increase cross-border commerce.

Such commerce, including more technology investment, could help Vietnam move up from lower middle income status.

“How to escape the middle income trap in a rapidly changing global economy,” Fulbright scholar Vu Thanh Tu Anh told an audience of Vietnamese and Swedish businesses this week. “That is our objective.”

 

China is “fed up” with hearing complaints from the United States about its Belt and Road program to re-create the old Silk Road, the government said on Thursday, following stinging criticism from U.S. Secretary of State Mike Pompeo.

The initiative, a key thrust of President Xi Jinping’s administration, has hit opposition in some countries over fears its opaque financing could lead to unsustainable debt and that it aims more to promote Chinese influence than development.

China sought to tackle those concerns at a summit in Beijing last month, promising to make the program sustainable and green and follow international standards, especially regarding debt.

The United States has been particularly critical, and Pompeo, speaking in London on Wednesday, slammed China for peddling “corrupt infrastructure deals in exchange for political influence” and using “bribe-fueled debt-trap diplomacy”.

In Beijing, Foreign Ministry spokesman Geng Shuang said various people in the United States had been making “irresponsible comments” on the program, especially before the summit when, he said, such criticism reached a crescendo.

“But what was the result? One hundred and fifty countries, 92 international organizations and more than 6,000 delegates from various countries attended the second Belt and Road Forum for International Cooperation, including 50 delegates from the United States,” Geng told reporters.

“I think this is the international community taking actual actions to cast a vote of confidence and support in the Belt and Road initiative, and the best response to the words and actions of the United States.”

In the past two days, some Americans have been “singing the same old tune”, seeking to attack and smear the program, he added.

“They’re not fed up with saying it; we’re fed up with hearing it,” he said.

“I want to remind them again, don’t overestimate your ability to create rumors, and don’t underestimate the judgment of others. If they want to, let them continue talking. We will continue getting on with things.”

The spat has fueled already tense relations between Beijing and Washington, most notably over their trade war, which the two countries have been seeking to end.

Vice Premier Liu He will hold talks in Washington on Thursday and Friday aimed at salvaging a deal that appeared to be unraveling after U.S. officials accused China of backtracking on earlier commitments and President Donald Trump threatened to hike tariffs on Chinese goods on Friday.

 

President Donald Trump said Wednesday U.S. automaker General Motors will invest $700 million in Ohio and create 450 jobs, selling one of its shuttered plants to a company that will produce electric trucks.

“GREAT NEWS FOR OHIO!” Trump tweeted.

Trump said he had talked to GM chief Mary Barra who told him of plans to sell the Lordstown, Ohio plant to Workhorse, a company that focuses on producing electric delivery vehicles.

In November, GM shuttered five U.S. plants, including auto assembly plants in Michigan and Ohio, as part of a 15 percent cut in its workforce worldwide — cutting around 14,000 employees — a move which drew Trump’s wrath on Twitter.

But in March, GM announced plans to invest $1.8 billion in U.S. operations creating 700 new jobs. About $300 million will be geared towards production of electric vehicles at the auto giant’s Orion plant in Michigan, creating 400 jobs, the company said in a statement.

“I have been working nicely with GM to get this done. Thank you to Mary B, your GREAT Governor, and Senator Rob Portman. With all the car companies coming back, and much more, THE USA IS BOOMING!” Trump said.

The U.S. president has repeatedly berated companies by name to pressure them into investing more or reversing decisions on job cuts.

 

 

 

Instead of managing livestock with her family on her Floyd, Iowa, farm, Pam Johnson would rather see tractors in her fields.

“I look outside at the weather and how we should be planting right now to have optimum yields this year, and we’re kind of stuck,” she told VOA, standing in a building on her farm that provided shelter from the intermittent downpours.

Johnson says she is stuck — not just because of the soggy weather, but also between a rock (trade agreements) and a hard place (tariffs). 

“The soybean tariffs are hurting us here,” she somberly explained. 

Tariffs on soybeans, imposed by China in retaliation for U.S. tariffs on imported steel and aluminum, have been in place for a year. The impact on prices, and the bottom line for farmers’ income, depends on exports for strong grain prices. As the price of soybeans, in particular, continue to fluctuate, concerns across the agricultural industry have heightened.

Adding to those concerns, the U.S. Congress has yet to schedule a vote to ratify the United States-Mexico-Canada Agreement (USMCA), which replaces the 1994 North American Free Trade Agreement, or NAFTA.

But Johnson is not one to wait around, either for drier weather or certain economic conditions. She recently decided to hit the road.

“Thought it was really important to make sure that I got my voice heard and the voice of other farmers about how important trade is to us and how the tariffs are hurting us. And thought it was well worth my time to get away from the farm during planting season to talk to congressmen and senators about what issues are important to us,” she said.

To send that message, she joined “Motorcade for Trade,” part recreational vehicle, part moving billboard, sponsored by Farmers for Free Trade.

Motorcade for Trade

“What you’ll be seeing as we’re going down the roadway on our Motorcade for Trade are facts about the importance of U.S., Canada and Mexico trade,” said Angela Marshall Hoffman, executive co-director of Farmers for Free Trade. “It’s really an effort to bring attention to what’s happening not just in rural America, but what’s happening across America, and how important Canada and Mexico trade is to our state, our economy, and most important, to the farms and ranches who depend on that trade across the country.” 

For Hoffman, Motorcade for Trade’s mission is personal. She owns a ranch in Wyoming where operations are disrupted by the uncertainty created by tariffs and ongoing trade negotiations.

“Are we going to put in new fence lines? Are we going to wait on a major construction project? Are we going to work with others to maybe run more cattle or not?” she outlined. “What we hear across the board, no matter what industry we’re in right now, is there is a lot going on with the trade war. Right now, there is desperate need for certainty.”

These were some of the concerns Johnson was able to deliver during one of her stops, which put her face to face with one of her elected officials.

“Is it possible to get USMCA passed this session?” she asked Republican Sen. Joni Ernst. 

Out of her control

During the roundtable discussion with Johnson and other business owners impacted by tariffs, Ernst said she believes there is strong support in both houses of Congress for passage of the USMCA this year.

In a separate interview with VOA, Ernst said she has President Donald Trump’s ear on these issues and believes he has farmers like Johnson in mind as negotiations continue.

“The president does want to see good and fair trade deals,” she explained. “And so, once those have been negotiated — especially once we have Canada and Mexico done — once we can seal the deal with China, we continue to work on other trade agreements, new trade agreements, around the globe. Then, we will have an expanding market for our American farmers.” 

While Johnson believes Ernst understands what’s at stake, and despite the senator’s assurances, she has mixed emotions about something she admits is out of her control: congressional approval of the USMCA.

“My hope is that it is going to be passed this summer,” she said. “My fear is that it doesn’t.”

Her other fear is also out of her control — the weather. 

What she and her family need most is a few sunny days to dry out the fields, so regardless of tariffs or trade agreements, they at least have an optimal crop to market.

Drivers for ride-hailing giants Uber and Lyft are turning off their apps to protest what they say are declining wages at a time when both companies are raking in billions of dollars from investors.

Organizers are planning demonstrations in 10 U.S. cities Wednesday, including Chicago, Los Angeles, New York, San Francisco and Washington, as well as some European locations like London.

 

The protests arrive just ahead of Uber’s initial public stock offering, which is planned for Friday. Uber hopes to raise $9 billion and is expected to be valued at up to $91.5 billion.

 

It’s not the first time drivers for ride-hailing apps have staged protests. Strikes were planned in several cities ahead of Lyft’s IPO last month, although the disruption to riders appeared to be minimal. More cities are participating in Wednesday’s protest, however.

 

“Drivers built these billion dollar companies and it is just plain wrong that so many continue to be paid poverty wages while Silicon Valley investors get rich off their labor,” said Brendan Sexton, executive director of the Independent Drivers Guild, in a statement. “All drivers deserve fair pay.”

 

In New York, striking drivers shut down their services at 7 a.m. and planned to remain inactive until 9 a.m., though it was still easy to locate a driver during rush hour near Wall Street in lower Manhattan on Wednesday.

 

Drivers in Los Angeles are planning a 24-hour strike and picket line at Los Angeles International Airport.

 

Uber, in a prepared statement Wednesday, said it is constantly working to improve the working environment for drivers.

 

“Drivers are at the heart of our service ? we can’t succeed without them ? and thousands of people come into work at Uber every day focused on how to make their experience better, on and off the road.”

 

Lyft said its drivers’ hourly earnings have increased over the last two years, that 75 percent of its drivers work less than 10 hours per week to supplement existing jobs and that on average the company’s drivers earn over $20 an hour.

 

“We know that access to flexible, extra income makes a big difference for millions of people, and we’re constantly working to improve how we can best serve our driver community,” Lyft said.

 

In New York, striking drivers are planning to proceed in a caravan across the Brooklyn Bridge and then hold a rally outside Uber and Lyft offices in Queens.

 

Strikes are also planned in Atlanta, Boston, Philadelphia, San Diego and Stamford, Connecticut.

 

 

 

If a rising tide lifts all boats, then Vietnam may find that there is a related saying in economics: when the tide goes out, you will see who was swimming naked.

The Southeast Asian country has fared fairly well amid the trade frictions around the world, with its foreign investment and gross domestic product continuing to grow. But even Vietnam is not immune if a recession hits the global economy, as some are expecting, which is why they are bracing for a hard landing. News this week that U.S. President Donald Trump plans to increase tariffs on Chinese goods has just added to the frictions, sending Asian stock markets plummeting.

An economic downturn — in other words, the tide going out — could expose vulnerabilities for Vietnam, the equivalent of those swimming naked. Most analysts are forecasting slower GDP growth for Vietnam in the year ahead.

Economic slowdown ahead

It “is important to recognize that the region continues to face heightened pressures that began in 2018 and that could still have an adverse impact,” said Andrew Mason, who is acting as the chief economist for the World Bank in the East Asia and Pacific region. “Continued uncertainty stems from several factors, including further deceleration in advanced economies, the possibility of a faster-than-expected slowdown in China, and unresolved trade tensions.”

His office projects the Vietnamese economy will expand 6.6 percent in 2019, while researchers at Capital Economics peg growth at an even lower rate of 6 percent year-on-year. That compares with the annualized rate of 7.1 percent in 2018.

The pending slowdown, if it comes, would be due to a variety of reasons, not least among them global demand. If more and more countries see their economies decelerate — because of the trade wars or otherwise — they will buy fewer goods from Vietnam. As an export-led economy based on factory products, Vietnam is extremely sensitive to the knock-on effects of foreign trade and consumption.

Another key risk factor for the economy is the portfolio of state-owned enterprises. The government has not divested its shares in the enterprises as quickly as planned. At the same time it faces a growing burden from tax and spending needs.

Public debt and a budget deficit

“Fiscal policy is also likely to become less supportive. Vietnam has one of the highest levels of public debt and the largest budget deficit in the region,” Capital Economics, an economic research company, said in a note to investors. “Tighter policy, in the form of slower spending growth and higher taxes, is needed to bring debt levels down to more sustainable levels.”

Both the company and the World Bank agree that, besides public debt, private debt poses a notable challenge in the country as well, especially at banks. Lenders have not completely offloaded their non-performing loan problem, which refers to loans that are unlikely to be repaid. That contributes to tightening credit, which can be a blessing and a curse.

“On the plus side, weaker credit demand is needed to reduce risks in the financial sector and put the economy on a more sustainable footing,” Capital Economics wrote. “But in the near term a slowdown in credit growth will drag on consumption and investment growth.”

Large trade deals

All of this comes during a transition period for Vietnam, which is preparing for new trade deals like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the European Union-Vietnam Free Trade Agreement. Academic researchers Tran Thi Bich Nhan and Do Thi Minh Huong say the transition period will create plenty of opportunities, but not everyone will come out ahead.

“In terms of society, the increased competition from participating in FTAs can push some companies in developing countries, primarily state-owned enterprises and companies with outdated production technology, into difficulties, bringing along the possibility of unemployment for a portion of the workforce,” Nhan and Huong wrote in the finance ministry’s official newspaper.

If Vietnam adds to that a slowdown in the global economy, workers and other vulnerable groups are most likely to be hardest hit. While the overall impact of a recession is generally negative, some say there is a silver lining. When the tide goes out, it can help distinguish between the efficient and inefficient companies, distinguish between an economy’s strengths and the weaknesses to be addressed. But no one expects it to be a pleasant process.

U.S. stocks slid Tuesday as escalating trade tensions between the United States and China triggered global growth fears and drove investors away from riskier assets.

The Dow Jones Industrial Average posted its second-biggest daily percentage drop of the year, while the S&P 500 and Nasdaq registered their third-biggest percentage drops, even as the major indexes pared losses to end off their session lows.

U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin said late Monday that China had backtracked from commitments made during trade negotiations. Those comments followed President Donald Trump’s unexpected statement Sunday that he would raise tariffs on $200 billion worth of Chinese goods to 25 percent from 10 percent.

Beijing said Tuesday that Chinese Vice Premier Liu He will visit the United States Thursday and Friday for trade talks. Additional tariffs are set to take effect Friday if a trade agreement is not reached by then.

Investor concerns

Monday’s comments from Lighthizer and Mnuchin raised concerns among some investors that trade talks between China and the United States could take much longer to resolve than previously thought.

“Week after week, we’ve heard there has been progress and that a deal would be reached,” said Kate Warne, investment strategist at Edward Jones in St. Louis. “Now the goalposts have moved. There’s been quite a shift in expectations.”

Investors expressed concern that additional tariffs, if imposed, could interrupt supply chains and hamper economic growth.

“The threat of tariffs has not been trotted out since the end of December,” said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh. “It could disrupt the symbiosis between (China and the United States).”

Stocks sensitive to trade 

Trade-sensitive industrial and technology stocks marked the biggest percentage declines among the S&P 500’s major sectors. All 11 sectors were in the red, with only utilities and energy falling less than 1%.

Shares of Boeing Co., the largest U.S. exporter to China, slipped 3.9%, and shares of Caterpillar Inc., another industrial stalwart sensitive to China, declined 2.3%.

Among technology stocks, Microsoft Inc. shares slid 2.1%, while Apple Inc. shares dropped 2.7%. Apple and Microsoft were the top two drags on the S&P 500.

The CBOE Volatility Index, a gauge of investor anxiety, spiked to its highest level in more than three months.

The Dow Jones Industrial Average fell 473.39 points, or 1.79%, to 25,965.09, the S&P 500 lost 48.42 points, or 1.65%, to 2,884.05 and the Nasdaq Composite dropped 159.53 points, or 1.96%, to 7,963.76.

Bright spots

In a bright spot, American International Group Inc. shares jumped 6.8% after the insurer reported a quarterly profit that blew past expectations.

With earnings season now in its homestretch, first-quarter profits are now expected to rise 1.2%, a sharp improvement from the 2.3% decline expected at the start of the earnings season.

Of the 414 S&P companies that have reported earnings so far, about 75% have surpassed analysts’ estimates, according to Refinitiv data.

Conversely, Mylan NV shares tumbled 23.8%, the most among S&P 500 companies, after the drugmaker reported lower-than-expected quarterly revenue and failed to provide greater clarity on a potential revamp of the company’s strategy.

Declining issues outnumbered advancing ones on the NYSE by a 4.13-to-1 ratio; on Nasdaq, a 3.32-to-1 ratio favored decliners. The S&P 500 posted four new 52-week highs and seven new lows; the Nasdaq Composite recorded 44 new highs and 62 new lows.

Volume on U.S. exchanges was 7.8 billion shares, compared to the 6.71 billion average for the full session over the last 20 trading days.

U.S. President Donald Trump’s intention to further hike U.S. tariffs on Chinese goods has alarmed American lawmakers of both parties who fear dire economic consequences from escalating tensions between the United States and its trading partners.

“I’m anxious for the tariff war to come to an end,” Republican Sen. Jerry Moran of agriculturally rich Kansas told VOA on Tuesday. “Exports are very important to the economy of my state. I would encourage the rapid resolution between the United States and China, because it has an immediate and consequential effect on the livelihoods of lots of people.”

“The [president’s] whole tariff policy has been dangerous folly,” New Jersey Democratic Sen. Robert Menendez said. “I hear it from New Jersey companies that recently, just this past week, told me about tariffs they have to pay on particular products that they can’t get anywhere else [but foreign suppliers].”

​Who’s paying?

On Sunday, Trump announced that tariffs on $200 billion of Chinese goods would rise from 10% to 25% as of Friday. He tweeted that “China has been paying” U.S. tariffs and that China’s “payments are partially responsible for our great economic results.”

Such assertions are disputed by many lawmakers, including Republicans who, on other matters, often come to the president’s defense.

“Currently, U.S. importers have paid the U.S. government over $16 billion in tariffs on imports from China,” Oklahoma Republican Sen. James Lankford said via Twitter. “This tax is not paid for by Chinese exporters, this is all paid by U.S. importers.”

​Trade talks to continue

Despite Trump’s tariff threat, Chinese officials have signaled they intend to continue trade discussions with Washington, prompting some lawmakers to applaud what they see as the White House’s hardball negotiating stance toward Beijing.

“The only reason that China is at the [negotiating] table is because of these tariffs, let’s not kid ourselves,” Republican Sen. John Kennedy of Louisiana said. “China has been cheating … and it’s got to stop. And President Trump has been the first president to call their hand.”

Some Democrats, meanwhile, credit Trump for confronting China over its trade practices but fault the strategy and tactics the president has employed.

“I commend President Trump for saying the status quo with China is not working,” Virginia Democratic Sen. John Warner said. “China is not playing by the rules, and my fear is the president may end up with a deal where the president sells an extra $100 billion of [American] soybeans, but these broader issues around technology … and [China’s] ongoing theft of intellectual property go unaddressed.”

“Tariff policy by tweet does not work,” said Massachusetts Sen. Elizabeth Warren, who is seeking next year’s Democratic presidential nomination. “We’ve had two years of experience now [with Trump], and it just seems to be getting worse and worse.”

​Beyond China

Tariff concerns on Capitol Hill extend beyond China. A group of Republican lawmakers has urged Trump to halt tariffs targeting Canadian and Mexican goods, warning the measures could torpedo Congress’s consideration of a newly negotiated free trade pact between the United States and both nations.

Regarding the president’s new tariff threat on Chinese exports, some Republicans are willing to give the president the benefit of the doubt — for now.

“Perhaps the president is espousing additional tariffs for purposes of getting China’s attention and to negotiate an agreement. That would be a wonderful outcome,” Moran said. “The challenge is: it’s not just one country that can impose tariffs. So, when the United States [previously] imposed tariffs, China retaliated on products from the United States. And that is very damaging to the ability to earn a living.”

U.S. Commerce Secretary Wilbur Ross said on Tuesday that American technologies and expertise could play an important role in developing India’s economy, but were facing significant barriers to accessing its markets.

Ross told a gathering of business leaders in New Delhi that foreign companies were at a disadvantage due to India’s tariff and non-tariff barriers and myriad regulations.

 

Ross said India was already the world’s third largest economy and by 2030 it would become the world’s largest consumer market because of the rapid growth of its middle class. “Yet today, India is only the U.S 13th largest export market due to overly restrictive market access barriers.”

 

Meanwhile, the United States is India’s largest export market, accounting for something like 20 percent of the total. “That’s a real imbalance, and it’s an imbalance we must drive to counter,” he said.

 

He noted that India’s average applied tariff rate is 13.8 percent, the highest of any major world economy.

 

India’s Commerce Minister Suresh Prabhu said India would like to work with the United States to resolve such issues in a way that benefits both countries.

 

“We will address the issues with the United States in a manner that will make this relationship better not just between the United States and India, but for the rest of the world as well,” Prabhu said.

 

Ross said that American companies now have a unique opportunity to increase defense technology sales to India which in turn would help balance the trade relationship between the two countries.

 

Bilateral trade in goods and services registered a 12.6% rise to $142 billion in 2018.

 

Exports of U.S. goods and services to India reached $58.9 billion in 2018, up 19% from 2017, according to the U.S. Embassy.

 

India offers business opportunities in the sectors of aerospace, defense, energy, health care and environmental technologies.

 

Representatives of more than 100 U.S. companies are visiting India as part of the U.S. Department of Commerce’s largest annual trade mission program, Trade Winds. They’re looking for opportunities in aerospace, defense, energy, health care and environmental technologies.

 

The delegation met with government leaders, market experts and potential business partners in New Delhi on Tuesday. They also will visit Ahmadabad, Chennai, Kolkata, Mumbai, Bangalore and Hyderabad.

 

 

China has confirmed that its top trade negotiator will travel to the United States to conduct a new round of trade talks later this week, even after U.S. President Donald Trump threatened higher tariffs on billions of dollars of Chinese goods after he complained the process is taking too long.

 

The Commerce Ministry issued a statement Tuesday that Vice Premier Liu He, President Xi Jinping’s top economic advisor, will meet with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin for two days of talks beginning Thursday.

 

Trump’s Twitter comments on Sunday about the new tariffs sent Asian stocks and U.S. futures tumbling Monday and added uncertainty over the future of U.S.-China trade negotiations. Despite the market drop, China’s official media stayed silent on Trump’s comments all morning.

Hours later, Foreign Ministry spokesman Geng Shuang told reporters that China is “trying to get more information” about Trump’s comments about new tariffs but stressed that Beijing’s negotiating team is still preparing to travel to the U.S. for talks this week. Geng did not say whether Vice Premier Liu would lead the delegation.

 

“The tweet is a big wrench in China’s foreign trade policy,” Nick Marro, analyst at The Economist Intelligence Unit (The EIU), told VOA. “There were a lot of expectations that at least the groundwork for a deal will be finalized this week,” he said, explaining why Beijing should be upset by the new threat.

 

Tweet with teeth

 

In his tweet, Trump said he would increase tariffs on $200 billion worth of Chinese goods from 10 percent to 25 percent on Friday. This would reverse a decision Washington took last February to keep it at 10 percent in the midst of trade talks.

 

“The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!,” Trump said, expressing dissatisfaction about the pace of trade negotiations and what he considered a Chinese attempt to renegotiate some aspects of the proposed deal.

Lighthizer on Monday confirmed that tariffs will be imposed Friday. He and Treasury Secretary Mnuchin told reporters Trump had learned over the weekend that Chinese officials “were trying to go back on some of the language” that had been negotiated in 10 earlier rounds of talks. They did not offer details.

 

Trump also said his policy of hiking taxes on Chinese goods had paid dividends.

 

“These payments are partially responsible for our great economic results,” he said.

 

He went further, saying another $325 billion of Chinese goods which “remain untaxed” will be taxed at 25 percent. He did not specify a timeline for making this change.

 

Unaffected stance

 

In its response Monday, the Chinese foreign ministry expressed hope that there is no change in the situation, and the two countries will continue to strive for an end to the trade war.

 

“What is of vital importance is that we still hope the United States can work hard with China to meet each other half way, and strive to reach a mutually beneficial, win-win agreement on the basis of mutual respect,” Geng said.

 

Echoing China’s confidence that trade talks would not be disrupted by Trump’s tweet, Shanghai-based expert Shen Dingli said, “China and the U.S. have big and overlapping stakes in bilateral trade. They will overcome any difficulties for a successful outcome of the trade talks.”

 

German sports car maker and Volkswagen subsidiary Porsche will pay a 535-million-euro ($598 million) fine over diesel vehicles that emitted more harmful pollutants than allowed, Stuttgart prosecutors said Tuesday.

“The Stuttgart prosecutor’s office has levied a 535-million-euro fine against Porsche AG for negligence in quality control,” the investigators said.

Porsche “abstained from a legal challenge” against the decision, the prosecutors office added.

Tuesday’s levy against Porsche is the latest in a string of fines against VW over its years-long “dieselgate” scandal.

The auto behemoth admitted in 2015 to manipulating 11 million vehicles worldwide to appear less polluting in laboratory tests than they were in real driving conditions.

Following fines against VW, high-end subsidiary Audi and now Porsche, no further investigations over “administrative offences” remain open against the group, a spokesman told AFP.

But legal proceedings against individuals, including former chief executive Martin Winterkorn, remain open.

Meanwhile, thousands of investors are suing the company for the losses they suffered on its shares when news of the scandal broke, while hundreds of thousands of drivers are also demanding compensation.

In its own statement, Porsche said the negligence punished by prosecutors was identified “several levels below the board.”

The firm also said that the cost of the fine was included in a provision of around one billion euros booked by the VW group in the first quarter.

So far the total costs of “dieselgate” for the Wolfsburg-based behemoth have mounted to 30 billion euros.

Shares in VW were down 2.2 percent around 2:00 pm in Frankfurt (1200 GMT) at 154.10 euros, against a DAX index of blue-chip shares down 0.7 percent.