Afternoon Coffee: U.S.-China Tariffs’ Effect on Both Sides; E2open to Acquire Amber Road

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China’s Ministry of Finance announced retaliatory tariffs on U.S. goods to take effect June 1, after negotiations between trade envoys for the two nations last week evidently did not produce a deal, according to a Bloomberg report.

“The new rate of 25% will apply to 2,493 U.S. products, with other goods subject to duties ranging from 5% to 20%,” the Ministry revealed, according to the article.

The Dow sank more than 600 points on the news, and Boeing and Caterpillar each took sizable hits to their stock.

How the new trade tariffs will affect Chinese manufacturers

Chinese manufacturers and exporters are trying to come to terms with the increase of tariff on Chinese exports by the U.S. from 10 % to 25%.

Liu Ligang, chief China economist at Citigroup Inc. in Hong Kong said in a note that the hike in tariffs on about $200 billion of goods would reduce China’s exports by 2.7%, drag on growth by 50 basis points over the next couple of years and may lead to the loss of 2.1 million jobs. “Global supply chains will be reshaped, with the likely relocation of clusters and producers to avoid tariffs,” said Zhuang Bo, chief China economist in Beijing at research firm TS Lombard told Bloomberg.

E2open and Amber Road announce acquisition agreement

E2open, a cloud-based provider of networked supply chain solutions, and Amber Road, which boasts a cloud-based global trade management (GTM) platform, announced an acquisition agreement today, a deal worth $425 million and making Amber Road private, according to a release.

Interestingly, E2open went private itself back in 2015, as Spend Matters Chief Research Officer Pierre Mitchell covered at the time.

Amazon starts deploying machines for packing

News agency Reuters reports that Amazon has started rolling out machines to automate packing of products, raising fears of job losses. It said the e-commerce giant was contemplating installing two machines at dozens more warehouses, removing at least 24 roles at each one.

GE Aviation moves on blockchain using Microsoft Azure

GE Aviation, a provider of commercial and military jet engines, has developed a supply chain blockchain using Microsoft Azure. GE Aviation supplies jet engines to nearly 60% of the global airline industry. GE Aviation Digital Group aims to share the blockchain, a self-built derivative of ethereum, across an industry-wide consortium of partners.

Ships sabotaged off UAE coast, U.S. issues warning

The Associated Press reports that two Saudi Arabian oil tankers were sabotaged off the coast of the United Arab Emirates and "significant damage" had been sustained by the vessels. One of them was en route to pick up Saudi oil to take to the United States. The attacks came as the U.S. issued a fresh warning to sailors.

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