The clients of a top bank in Europe have already started to feel the pinch of the global trade tariffs and have begun to change production lines and issuing profit warnings, said the CEO of the bank.
"We see clients looking to reorganize their value chains. We are making sure that either they are not caught by higher tariffs or moving their production or basically rerouting value chains through which they make their products," said Ralph Hamers, the chief executive officer of Dutch bank ING in a media interview at the sidelines of the Handelsblatt banking conference in Frankfurt.
Some of the customers of the bank have said that their products may loose competitiveness because of increasing costs of production and resulting in possible drop in sale, Hamers added.
"It is very clear that a trade war is not good for producer confidence to invest and for consumer confidence to consume. It already has (had) a negative impact on economic growth", he said.
The escalating trade war globally has triggered nervousness among businesses throughout the world. In the latest round of fresh tariffs, the United States and China slapped import tariffs on each other’s goods worth $16 billion last week. both the countries had already imposed such import tariffs on each other’s goods worth $34 billion earlier in July.
Businesses, markets and analysts are now keeping a close watch on the possible imposition of another round of tariffs by the US on Chinese goods worth $200 billion later this year which would be possibly retaliated by like for like tariffs by China on US imports into the country.
In addition to the trade tariffs, another factor that has kept businesses and investors in Europe on their cautious toes is Brexit - the vote in eth UK resulting its decision o leave the European Union. There is a huge uncertainty about the kind of deal that the UK would be able to strike for trade and business with the EU before it leaves the common market.
However, at the current time, there does not appear to have been any negative impact of Brexit, Hamers reassured.
"(The) U.K. economy is growing pretty well, employment is also improving there. (The) European economy is also growing pretty well. Clearly, probably closer to the deadline, maybe some volatility coming but I truly hope that there is common sense with the politicians in order to get the deal." Hamers said.
The Brexit vote to leave the EU was conducted in June of 2016 but the entire process of the UK formally leaving the EU scheduled for 29 March 2019 has been froth with technical difficulties. The negotiations between the UK and the EU have to be completed and a formal deal endorsed by both the parties before the departure date. The negotiations include issues such as the movement of people and goods across the border between Northern Ireland and the Republic of Ireland
(Source:www.cnbc.com)
"We see clients looking to reorganize their value chains. We are making sure that either they are not caught by higher tariffs or moving their production or basically rerouting value chains through which they make their products," said Ralph Hamers, the chief executive officer of Dutch bank ING in a media interview at the sidelines of the Handelsblatt banking conference in Frankfurt.
Some of the customers of the bank have said that their products may loose competitiveness because of increasing costs of production and resulting in possible drop in sale, Hamers added.
"It is very clear that a trade war is not good for producer confidence to invest and for consumer confidence to consume. It already has (had) a negative impact on economic growth", he said.
The escalating trade war globally has triggered nervousness among businesses throughout the world. In the latest round of fresh tariffs, the United States and China slapped import tariffs on each other’s goods worth $16 billion last week. both the countries had already imposed such import tariffs on each other’s goods worth $34 billion earlier in July.
Businesses, markets and analysts are now keeping a close watch on the possible imposition of another round of tariffs by the US on Chinese goods worth $200 billion later this year which would be possibly retaliated by like for like tariffs by China on US imports into the country.
In addition to the trade tariffs, another factor that has kept businesses and investors in Europe on their cautious toes is Brexit - the vote in eth UK resulting its decision o leave the European Union. There is a huge uncertainty about the kind of deal that the UK would be able to strike for trade and business with the EU before it leaves the common market.
However, at the current time, there does not appear to have been any negative impact of Brexit, Hamers reassured.
"(The) U.K. economy is growing pretty well, employment is also improving there. (The) European economy is also growing pretty well. Clearly, probably closer to the deadline, maybe some volatility coming but I truly hope that there is common sense with the politicians in order to get the deal." Hamers said.
The Brexit vote to leave the EU was conducted in June of 2016 but the entire process of the UK formally leaving the EU scheduled for 29 March 2019 has been froth with technical difficulties. The negotiations between the UK and the EU have to be completed and a formal deal endorsed by both the parties before the departure date. The negotiations include issues such as the movement of people and goods across the border between Northern Ireland and the Republic of Ireland
(Source:www.cnbc.com)