Finance Minister, Bruno, NPR discussed on Here & Now


Dot com from NPR WBEZ what I'm robin young is here now and today the French find finance minister rather Bruno the mayor said that if president trump imposes tariffs on French products as threatened the E. you will retaliate trump is threatening terrace in response to attacks France is levying on some US tech firms including Google and Amazon and this that comes as both countries air the competing visions for NATO at the NATO meeting this week in London but such as friends earlier this week trump announced new tariffs on some products from Brazil and Argentina and he signaling that he might wait longer for a trade agreement with China to which the markets responded by dropping leave L. she is the MSNBC anchor in economics correspondent high alley I robin and start with friends Tom threatening a one hundred percent tariff on wine and other luxury goods in retaliation for France's new digital tax we got about so France levied a three percent tax on companies that have at least a hundred and forty five million dollars in global revenue who do online sales in France but are not based in France there about thirty companies affected by this and most of them are American tech firms like Google and Facebook there's some Chinese and British and even some French businesses affected but it's it's part of a global push where countries are trying to deal with the fact that tax codes are not written for the internet so what do you do with a company based in a low tax haven or place that they're paying their taxes too but they make a lot of money in your country additional taxes a solution seen by some companies but because most of these big digital companies are American America doesn't tend to like this is interesting because internally within the country there's concern that people are buying things online and taxes on so we have that question here as well but here's president trump really kind of lashing out of these countries many other countries doing this Turkey Italy trump said they could be next in line I'm terrified and one of the rationales for the terrorists were hearing this week is currency manipulation a trump announced those new steel and aluminum tariffs on Argentina and Brazil because he as he said the concurrency manipulators but we know Brazil's also stepped into supply soy beans to China because China stop buying from the US because of the trade war so yes what's going on here so I it's it's hard to call Brazil or Argentina correct currency manipulator spec the United States treasury which does this on official basis doesn't contain either those two countries the the rail of the peso are down because both of those countries economies are very weak Brazil is on the edge of a recession Argenteuil it denies dealing with a bunch of things including fifty percent inflation so that's typically what this is all about the the Brazil's got a free floating currency so if your economy is weak typically you lower your interest rates when you lower interest rates your currency becomes less attractive to other due to other countries now Brazil and Argentina have been selling US dollars to support their in buying their currencies on the open market to support them that's actually the opposite of currency manipulation when you buy dollars and strengthen the US dollar that is currency manipulation against the dollar so Donald trumps ideas about currency manipulation don't make sense but Brazil got most of the soybean orders that used to come from America after the trade deal and so and and we're not even if the trade deal were dropped tomorrow China's help Brazil build some of that infrastructure to supply soybean so they're going to be doing a lot more business with with China so that is part of it is that you pay back there just willing to thirty seconds yeah we think about the trade deal well a lot of people have been doubting whether one's coming president trump could keeps on hitting.

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