Tag Archives: tariffs

Businessman loves Trump, but dislikes tariffs, wants government health care

Saturday, Aug. 11, 2018|2 a.m.

Don Ahern, president and CEO of Las Vegas-based Ahern Rentals, is a Donald Trump person.

“Donald Trump is my hero. Let it be known, I like him,” Ahern said today on Nevada Newsmakers.

But there are 2 areas where Trump is causing heartburn for Ahern Rentals, the largest independent rental company in The United States and Canada, Ahern said.

One concern is Trump’s proposed 25 percent tariffs on Chinese imports. They make sure to cause China to enforce or increase tariffs on U.S. items.

Trump has currently enforced a 25 percent tariff on steel and 10 percent tariff on aluminum from Europe, Canada and Mexico.

The other concern is the increasing cost of medical insurance for the business and Trump’s failure to reverse and replace Obamacare.

“These tariffs are not working for us,” Ahern said. “It is triggering us to have a lot of cost increases now. There is a great deal of intricacy in the tariffs. We purchase millions and millions of tons of steel for our units. We produce over 12,000 tools a year and every element we buy is made out of steel.”

Ahern, nevertheless, is confident Trump’s negotiating skills will guarantee a future where international trade is fairer for everyone.

“I just think he is the most incredible arbitrator I have actually ever seen,” Ahern said of Trump. “I wish I might hold a candle to him.”

Ahern desires all tariffs removed and feels that might be Trump’s end game.

“I do hope that these tariffs are kind of a course to get to where we have to be, which is essentially trade with no tariffs going in either case,” he stated.

Ahern is likewise confident Trump will continue trying to rescind and change Obamacare. “Some of the biggest issues we have actually got as an entrepreneur, a minimum of for me, has actually been healthcare,” he stated.

Ahern stated his company’s healthcare expenses have actually rocketed from $5 million every year a couple of years ago to $15 million now.

“The business has grown a lot which is gorgeous. But year in and year out, we have actually had anywhere from 12 to 20 percent boosts (in health-care expenses) yearly,” he said.

Health care must be taken over by the federal government, Ahern stated, although he didn’t mention particular ways of doing that.

“I’m a Trump fan and all of that, but I really believe that health care must be a federal government issue and not a company’s issue, because this causes workers to walk around and causes us to have all type of problems,” he said.

Even though Trump has stumbled on a few problems, Ahern said, he feels business climate is much better than it would have been under a Democratic administration.

“He has actually conserved our country, in my viewpoint,” Ahern stated of Trump. “I’m not exactly sure where we would be, had it gone the other instructions.”

What Tariffs? Retail Imports Projection to Set Record, May Assistance Real Estate Growth Plans for Retailers

Imports are filling cargo ships in ports around the country.Retail imports are anticipated to set a record this month and for the remainder of the year, the latest favorable sign in the face of tariff issues that may support any realty development prepare for merchants. Imports filled 1.82 million 20-foot cargo ships in

May, leading the author of a new report to conclude that June will set a brand-new record for volume. That’s a strong sign that merchants have a positive outlook on the economy. The Worldwide Port Tracker took a look at imports

at 16 significant retail container ports in the United States, including Los Angeles/Long Beach, New York/New Jersey and Miami. June is thought about an essential

month for retailers because it normally affects spending on business realty or other expansion for the remainder of the year. Together with reports of strong employment, consumer belief and wage development, the import numbers are the most recent favorable indications pointing to a healthy economy, stated Barry Wolfe, senior managing director of investment at Marcus & Millichap in Fort Lauderdale, Florida.” There are a lot of positives. This is another one,” Wolfe said The report, released

by Hackett Associates in combination with the National Retail Federation, credited included consumer need and an increase in retail sales for the boost, despite$ 34 billion of tariffs the United States troubled China that worked July 6. Those tariffs are anticipated to press costs higher but shouldn’t create a considerable effect on trade, said Jonathan Gold

, the National Retail Federation’s vice president for supply chain and customs policy.” Sellers can not quickly or quickly change their global supply chains, so imports from China and in other places are anticipated to continue to grow for the

foreseeable future,” Gold said. Even so, forecasters have actually hesitated to offer any clear indicator of whether the strong financial conditions will last beyond the beginning of 2019.

That’s when any escalation in trade disputes later on this year and concerns about boosts in rates of interest would begin to take hold. The Might boost was up 11.3 percent from April as retailers get ready for the summer season shopping season. It’s likewise 4.3 percent year-over-year growth. Imports in July and August should also set records, the report stated. The numbers support findings by the National Retail Federation that projection strong sales for the remainder of the year. Retail sales– leaving out autos, restaurants and gasoline station– were up 5.6 percent year-over-year in May. Sales for the entire year could increase as much as 4.4 percent over 2017 with a strong holiday shopping season. “This is definitely a lot different than conversations we were having a year ago about the retail market,” stated Jack Kleinhenz, primary economist at the National Retail Federation.

” I’m feeling really positive and positive about how we’re going to end up 2018.” Rob Smith, National Retail Reporter CoStar Group.

Dow dives 600 points as China puts tariffs on U.S. products

Image

< img class= "photograph" src=" /wp-content/uploads/2018/04/AP18092531768098_t653.jpg" alt

=” Image”/ > Richard Drew/ AP Trader Tommy Kalikas works on the floor of the New York Stock Exchange, Monday, April 2, 2018.

Monday, April 2, 2018|10:45 a.m.

NEW YORK– U.S. stocks are tumbling Monday after China formally raised import duties on U.S. pork, apples and other items. It’s a relatively small relocation but investors are stressed it might be action toward a trade war that damages international commerce and business revenues.

Meat producer Tyson Foods is amongst the most significant losers on Wall Street. Financiers are also discarding a few of their current favorites, including innovation companies like Microsoft, and Amazon, the target of numerous important tweets from President Donald Trump over the last couple of days.

KEEPING SCORE: The Requirement & & Poor’s 500 index skidded 71 points, or 2.7 percent, to 2,569 since 1:36 p.m. Eastern time. The Dow Jones commercial average lost 623 points, or 2.6 percent, to 23,480. The Nasdaq composite plunged 212 points, or 3 percent, to 6,850. The Russell 2000 index of smaller-company stocks fell 34 points, or 2.3 percent, to 1,494.

U.S. markets were closed Friday for the Good Friday vacation. The benchmark index lost 1.2 percent in the first quarter of 2018 following 9 straight quarters of gains.

TRADE WORRIES: China raised import duties on a $3 billion list of U.S. goods in response to U.S. tariffs on imported steel and aluminum. Tyson Foods plunged $4.42, or 6 percent, to $68.77.

A larger disagreement looms over Trump’s approval of possible higher responsibilities on Chinese items. There are a variety of points of contention in between China and Washington, Europe and Japan over a state-led financial model they complain obstructs market access, safeguards Chinese business and subsidizes exports in violation of Beijing’s free-trade commitments. On the other hand the United States, Canada and Mexico continue to hold speak about possible changes to NAFTA.

The rate of gold climbed 1.2 percent to $1,343.60 an ounce and silver leapt 2 percent to $16.60 an ounce as some investors took money out of stocks and looked for safer financial investments.

THE QUOTE: After a month of public negotiations between the U.S. and several other nations, Monday marked the first time another country has officially put tariffs on U.S. items in reaction to the Trump administration’s recent trade sanctions. Kate Warne, an investment strategist for Edward Jones, stated the action by China is little however considerable.

” The fact that a country has really raised tariffs in retaliation is a crucial step in the wrong instructions,” she said. “The tariffs imposed by China today result in higher worries that we will see intensifying tariffs and the possibility of a much larger effect than financiers were expecting recently. And that might be real for Mexico in addition to for China.”

PRIME TARGET: Amazon fell another $70.84, or 4.9 percent, to $1,376.50. After peaking at almost $1,600 a share last month, Amazon has plunged with the marketplace just recently. Trump repeatedly criticized the company of late over concerns including taxes and Amazon’s shipping handle the U.S. Postal Service. Much of Trump’s criticism has followed undesirable reporting in The Washington Post, which is owned by Amazon creator Jeff Bezos but is a separate company from Amazon.

Warne, of Edward Jones, stated financiers are being cautious in the meantime, but it’s unclear if anything will come of Trump’s badmouthing the business.

” There isn’t really an agency that goes through Trump’s tweets and acts on them,” she stated.

In spite of its current losses, Amazon stock is still up about 18 percent in 2018. It wasn’t the only market preferred to fall out of favor Monday. Microsoft dropped $2.97, or 3.3 percent, to $88.30 and Google’s parent company, Alphabet, shed $31.13, or 3 percent, to $1,006.01. Boeing moved $8.25, or 2.5 percent, to $319.63.

WALMART SHOPS? Health insurer Humana increased following ongoing reports Walmart might purchase the company or develop a brand-new collaboration with it. The Wall Street Journal reported on the possible offer recently. Humana is a major supplier of Medicare Benefit protection for individuals age 65 and older. Humana gained $10.99, or 4.1 percent, to $279.82 and Walmart moved $3.47, or 3.9 percent, to $85.50.

Walmart has actually declined to comment.

TESLA SLOWS: Tesla stock decreased after the electrical automobile maker said Friday that the car in a fatal crash recently in California was running on Autopilot mode, making it the most recent mishap to include a semi-autonomous automobile. Previously this month, a self-driving Volvo SUV being tested by ride-hailing service Uber struck and killed a pedestrian in Arizona.

Tesla fell $13, or 4.9 percent, to $253.13. Nvidia, a chipmaker that supposedly stopped its own work on items for semi-autonomous cars and trucks after the current occurrences, lost $9.17, or 4 percent, to $222.42.

BONDS: Bond rates recovered after an early dip. The yield on the 10-year Treasury note stayed at 2.74 percent after a sharp decrease last week.

PRODUCTS: Benchmark U.S. crude lost $1.71, or 2.7 percent, to $63.23 a barrel in New York. Brent crude, utilized to rate global oils, moved $1.33, or 1.9 percent, to $68.01 a barrel in London.

Copper rose 2 cent to $3.05 a pound.

CURRENCIES: The dollar declined to 105.99 yen from 106.50 yen. The euro dipped to $1.2288 from $1.2306.

OVERSEAS: Trading in France, Germany and Britain was closed for Easter. Japan’s benchmark Nikkei 225 lost 0.3 percent and South Korea’s Kospi fell nearly 0.1 percent. The Hang Seng in Hong Kong was closed too.

REITs, Construction Industry React to Tariffs, Warn Increasing Construction Costs Might Cancel Projects

Rising Rates for Building Product Will Further Capture Advancement Margins and Render Some Projects ‘Uneconomic’

Higher steel and aluminum costs arising from proposed tariffs will likely result in greater costs for brand-new jobs such as this new office complex in Washington, DC.

President Donald Trump’s plan to enforce steep tariffs on steel and aluminum imports have stimulated increasing concern and alarming cautions this week from designers, specialists, REITs and realty lobbying groups who say tariffs could put more pressure on already increasing structure expenses and cause designers and financiers to hold off, cancel or avoid new advancement opportunities.

Regardless of a potential carve-out revealed Wednesday by the White Home for North American trading partners Canada and Mexico, the proposed 25% and 10% tariffs announced on imported steel and aluminum have triggered mounting opposition over the course of the week from popular congressional Republican politicians and magnate stressed over the potential effect on the economy.

The plan has actually shaken international financial markets and threats of retaliation by the European Union, China and other U.S. trading partners and triggered the resignation of White House primary economic consultant Gary Cohn.

The proposed tariffs might go into effect about 2 weeks after the president indications a governmental pronouncement anticipated today or Friday.

Realty Roundtable President and CEO Jeffrey DeBoer cautioned that “unexpected effects from such broad penalties targeting metals necessary to building and construction” might jeopardize the present healthy state of the U.S. commercial property market. DeBoer stated greater construction expenses might make many brand-new tasks “uneconomic and unviable” and hurt investment and task creation.

U.S. Chamber President and CEO Thomas J. Donohue likewise provided a declaration Wednesday stating business organization “is really concerned about the increasing potential customers of a trade war which would put at risk the financial momentum attained through the administration’s tax and regulative reforms.”

“We urge the administration to take this danger seriously and specifically to refrain from imposing brand-new worldwide tariffs,” which would hurt American makers, provoke prevalent retaliation from U.S. trading partners and leave the real problem of Chinese steel and aluminum overcapacity practically unblemished,” Donohue said.

REIT Execs Lament Increasing Expense of Steel, Labor

Tariffs and increasing building materials, land and labor costs were top of mind for experts and senior REIT executives at the 2018 Citi Global Residential Or Commercial Property CEO Conference in Hollywood, FL. Andrew M. Alexander, CEO with grocery anchored shopping mall investor Weingarten Realty Investors (NYSE: WRI), said prices will likely continue to

wander upward.”Just how much, it’s tough to say, however if there are aluminum tariffs, that’s got to impact the costs,” Alexander said, including that Weingarten has already secured the rate of steel through most of its active pipeline. “When it comes to green-lighting brand-new advancements, I do not think we’re going to do a great deal of that, because there’s so much uncertainty and not robust sufficient tenant need to soak up. Everyone believes there will be some amount of cost increases from products and labor.”

Multifamily designer Camden Property Trust (NYSE: CPT)has actually had the ability to get development deals at costs varying from 7% to 15% below replacement cost relying on the marketplace, Camden Chairman and CEO Richard Campo told analysts. At one Broward County, FL, proposed development, for example, construction expenses have increased 65% considering that 2013, “that doesn’t consist of another $300,000 or $400,000 of steel after the steel tariff starts and the leas have actually gone up 26%,” Campo stated.

Joseph Margolis, chairman and CEO of Bonus Area Storage Inc. (NYSE: EXR)told analysts that the self-storage REIT’s advancement pipeline has slowed or closed down as yields compress, in part due to increasing building costs.

“Clearly there’s pressure from the equity capital providers and the debt capital companies as advancement yields begin to get squeezed,” Margolis said. “Land expenses are up, lumber had a big increase over the last number of months, labor costs are up. Now, we’re thinking steel expenses may increase also.”

Asked by an analyst whether the hunger for banks to lend for brand-new development is slowing, Public Storage CEO Ronald Havner voiced comparable beliefs. The beauty of REITs purchasing so-called C/O (certificate of occupancy) deals– newly developed self-storage residential or commercial properties built by developers– has actually dulled from a year to 18 months ago, Havner stated.

“My expectation is that would have some influence on new advancement moving forward,” he said. “Labor is tight, labor expenses are rising, [the cost of] steel’s gone up recently. The implicit replacement cost on everybody’s homes is going up due to the fact that brand-new building and construction is increasing in expense.”

Steel Prices on Rise as Foreign Providers Draw Back

Four of the Federal Reserve’s 12 districts saw a marked increase in steel prices, due in part to a decrease in foreign competitors. Cost growth for lumber and other structure products picked up due to an uptick in building and construction activity, according to the Fed’s most current Beige Book study launched Wednesday. A combination of stronger demand, supply restraints and higher products rates increased non-labor expenses, particularly in building, manufacturing and transport.

” [U.S.] steel manufacturers reported raising selling prices because of a decline in market share for foreign steel and expectations about potential outcomes of pending trade cases,” the Fed said. “Makers further down the supply chain reported large increases in the rate of steel that they bought.”

Ken Simonson, chief financial expert of the Associated General Professionals (AGC), said the tariffs might be “harmful to the construction market in several ways.”

“Steel is nearly ubiquitous in building and construction,” Simonson stated. “Aluminum is utilized in all types of buildings for window frames and curtain walls, siding and other architectural elements. The price of both imported and domestic metals is likely to rise instantly. That will minimize or get rid of any profit for specialists who have already signed a fixed-price agreement for a job, however who have not yet bought metal items.”

The increases in materials will trigger bidder to trek rates for future jobs, triggering governments and other public owners of residential or commercial property, who normally on repaired budgets, to lower the number or scope of projects put out to bid such as schools, highways, bridges or other infrastructure. Some private jobs will be shelved or canceled as building boost make them uneconomic, Simonson said.

Simonson stated cost boost notifications continue to strike specialists’ inboxes, noting that he saw an announcement from the American Buildings Co. South division of Nucor Structures Group of a 7% price boost on pre-engineered metal structures effective March 20.

Inning accordance with an estimate this week by Trade Partnership Worldwide, a global trade and financial consulting firm, while the strategy would increase U.S. iron and steel, aluminum and other non-ferrous metals work by about 33,450 jobs, the tariffs would eliminate 179,334 tasks throughout the remainder of the economy for a net loss of nearly 146,000 tasks, including more than 28,000 building and construction positions.

The tariffs “threatens to dramatically increase the prices of lots of structure products specified by designers,” stated Carl Elefante, president of the American Institute of Architects (AIA).

“Structural metal beams, window frames, mechanical systems and outside cladding are mainly stemmed from these essential metals,” Elefante said. “Pumping up the expense of materials will restrict the variety of alternatives they can utilize while adhering to financial constraints for a structure.”

Elefante included that the administration’s proposed $1.7 trillion facilities program will not achieve the very same worth if crucial products end up being more costly,” and the capacity for a trade war puts other building materials and items at risk.

“Any move that increases structure expenses will threaten domestic design and the construction market, which is accountable for billions in U.S. gross domestic product, economic growth and job development,” Elefante stated.