Global Trade, Economic News: Japan Wants Exemption From Metals Tariffs

What happens abroad impacts MSCI members in North America. Here is the latest economic, trade, and other policy news of note for the last week:

• Last week, Japan’s trade minister has asked the United States to abolish Section 232 tariffs on steel and aluminum imports from Japan. While the two countries are in discussions regarding that request, according to S&P Platts they also discussed how to work together “to address issues in the steel and aluminum sectors, including the root causes of non-market excess capacity.” Japan’s request came after the United States reached an agreement to reduce tariffs on metals products from the European Union.
• China’s National Bureau of Statistics reported that the country’s manufacturing activity contracted in October for a second straight month. China’s official manufacturing purchasing managers index fell to 49.2 in October, down from 49.6 in September as materials and power shortages hampered factories.
• Meanwhile, the JP Morgan global manufacturing purchasing managers index (PMI) reported, “The rate of expansion in global manufacturing production was the weakest during the current 16-month upturn in October.” The reason was “output growth was stymied by substantial disruption to raw material deliveries, resulting input shortages, rising cost inflation, and a near-stalling of international trade flows.” Find this reading, and all PMI readings from around the world, here.
• MSCI has long-maintained that addressing climate change will require emerging economies to cut emissions. In a positive development, Indian Prime Minister Narendra Modi has committed that his country would reach net-zero emissions by 2070 and would source half of its energy from renewables by 2030. India is the world’s third-largest emitter of greenhouse gases.