Soyprise Soyprise

Just when you thought they soyrendered… The trade relationship between the United States and Europe is improving, German Agriculture Minister Julia Kloeckner said on Saturday, but there is no guarantee the bloc will buy the quantity of soybeans that Washington expects.

Soy

U.S. President Donald Trump and Jean-Claude Juncker, president of the European Commission, the EU’s executive body, struck a surprise deal on Wednesday that ended the risk of an immediate trade war between the two powers.

After the talks, Trump highlighted benefits for U.S. farmers. “The European Union is going to start, almost immediately, to buy a lot of soybeans,” he told reporters.

Kloeckner, speaking to Reuters on the sidelines of a G20 meeting in Buenos Aires, said the amount of soy Europe will import is yet to be determined.

“Will we be able to do whatever President Trump wishes for? I don’t know. Let’s see whether this will be the case or not,” she said.

Soy its back to the drawing board, folks. We’ve got another European insoyrection on our hands. Yup, another resoygence of European protectionism. But if they want a trade war then their destruction is assoyed. We’ll see who has the better chance of soyvival.

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Robust Export Growth?

German exports rebounded in May, providing more evidence of a strengthening of the economy in the second quarter.

Export

Yeah, I guess that’s true. If you forget the exports last month to one particular country. Those have dropped 10% for some inexplicable reason. But I’m sure that will pick up again real soon, right?

Despite ongoing trade tensions, German exports did what they normally do: grow. In May exports increased by 1.8% MoM, from -0.3% in April. At the same time, imports increased by 0.7% MoM, from 2.6% MoM in April. As a result, the trade surplus narrowed somewhat, from EUR20.1bn to EUR19.7bn.

“Die Verunsicherung durch die Einführung von Importzöllen seitens der USA und die Gegenmaßnahmen der EU und Chinas machen sich direkt bei den Unternehmen bemerkbar.”

Germany Preparing Itself To Lose The Next “Illegal” War

A Vicious Cycle – Berlin Worried about Losing Trump’s Trade War.

War

The U.S. has followed through with its threat to impose punitive tariffs on European steel and aluminum and the signs are pointing to a global trade war. The German government is doing what it can to prevent harm to its automobile industry.

… The German automotive industry would also be hard hit by a possible trade war with the U.S., where the most cars are sold in the world after China. German carmakers export around a half-million vehicles to the U.S. each year — particularly the kinds of expensive sedans that have been a thorn in Trump’s side for decades. If punitive tariffs are imposed, carmakers would likely have no choice but to react with higher prices and thus risk a decline in sales. VW subsidiary Porsche is especially at risk. Although the company sells almost a quarter of its vehicles in the country, it does not operate any factories of its own in the U.S.

“Germany stands to lose most.”

This Could Mean War Or Something

Tariff war. World War T. You know, the end of the world as we know it? Then it’s all over but the crying. And the Zombie Apocalypse. It’ll be  Zombie Apocalypse Now, so-to-speak.

Steel

Yawn.

Berlin holds little hope that the EU will be granted a further exemption from US metals tariffs beyond a May 1 deadline. Washington has offered the bloc a reprieve to speed up talks on a series of trade issues.

The German news agency DPA reported on Thursday that the upcoming meeting between Chancellor Angela Merkel and US President Donald Trump — scheduled for the weekend — was unlikely to win the EU a further exemption from higher steel and aluminum tariffs planned by Washington.

Citing government sources, DPA said the Trump administration’s plans to impose a 25 percent tariff on steel and 10 percent on aluminum imports to the United States would likely come into effect on May 1.

But maybe something miraculous will happen at the absolutely very last second to hold off trade war Armageddon. Maybe it won’t. Hard to say for sure so be sure to stay tuned.

Bundesregierung befürchtet Handelskrieg mit den USA