US Threatens Additional Tariffs on Chinese Imports
After China retaliated with more tariffs ranging from 5 to 10 percent on $75 billion worth of goods, US President Trump reacted with more tariffs. He threatened to add an additional 5 percent on all the current and future tariffs set to take effect. This means the US will raise tariffs on $250 billion worth of Chinese goods from 25 percent to 30 percent on October 1. The tariffs that went into effect on September 1 and tariffs that will take effect on December 15 will also raise from 10 percent to 15 percent. President Trump also ordered US companies to find an alternative to China.
Despite the negative sentiment on global demand, oil and diesel prices failed to react to this news. This is because President Trump tweeted Monday morning saying he has “great respect” for Chinese President Xi and “talks are continuing.” Trump even went on to say that China called him and he stated, “I think they want to make a deal,” although China claimed they never called Trump.
Despite Bankruptcies, More US Truckers Rolling
A recent article by the Journal of Commerce (JOC) shows more new trucking companies are hitting US highways than going out of business. According to the Federal Motor Carrier Safety Administration (FMCSA), more than 21,000 new trucking companies were added to the market in the past 12 months. Of these 21,000 companies, approximately 78 percent were companies with one to six trucks. Roughly 168 carriers were added with 101 to 500 trucks. In the first half of 2019, we have seen just 640 carriers go out of business, which alludes to bankruptcies doing little to reduce trucking capacity.
In Other News:
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Trucking company failures are rising as faltering freight demand exposes operators unprepared for a downturn after last year’s red-hot shipping market. Approximately 640 carriers went out of business in the first half of 2019, up from 175 for the same period last year and more than double the total number of trucker failures in 2018.
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