The US labour market showed signs of a steady slowdown in October, with job openings increasing moderately and layoffs declining, according to the latest Job Openings and Labor Turnover Survey (JOLTS) report released by the Bureau of Labor Statistics on Tuesday. Job openings, a key indicator of labour demand, rose by 372,000 to 7.744 million at the end of October. However, the September figures were revised downward to 7.372 million from the initially reported 7.443 million. Economists polled by Reuters had anticipated 7.475 million vacancies. Labour Market Dynamics While job openings increased, hires dropped by 269,000 to 5.313 million, and layoffs fell by 169,000 to 1.633 million. These figures suggest a gradual cooling of the labour market rather than a sharp contraction. Hurricanes and strikes also impacted October’s labour market data. Rebuilding efforts in storm-affected regions and the resolution of strikes at Boeing and another aerospace company are expected to contribute to a ...
Chinese electric vehicle (EV) makers suffered a setback in Europe in July 2024, as new tariffs and a general slowdown in EV demand hit their sales. The introduction of tariffs on Chinese-made EVs, which took effect on July 5, has added pressure on automakers already grappling with reduced incentives in key markets like Germany.
Key Takeaways:
Impact of New Tariffs: Chinese automakers, including SAIC Motor Corp’s MG and BYD Co, saw their share of EV registrations in Europe drop to 9.9% in July 2024, down from 10.2% a year earlier. New tariffs have increased duties on Chinese-made EVs to as high as 48%, significantly impacting their competitiveness in the European market. SAIC’s MG brand experienced a 38% decrease in registrations compared to July 2023 and a 60% decline from June 2024 as it pushed more than 13,000 vehicles into dealerships ahead of the tariff deadline.
Decline in EV Demand and Trade Tensions: The overall demand for EVs in Europe weakened following the removal of incentives in Germany, Europe’s largest auto market. In July, EV sales in Germany dropped by 37%, and year-to-date sales are down by 20%. Meanwhile, retaliatory trade tensions have flared, with China launching a probe into EU brandy dumping but refraining from immediate tariffs. The EU's duties on Chinese EVs could become permanent by November, depending on the outcome of trade negotiations.
Adjusting to Market Changes: To mitigate the impact of tariffs, Chinese automakers are expanding local production capacities in Europe. BYD, which increased its presence in Europe compared to last year, is building plants in Hungary and Turkey to circumvent the new tariffs. Other companies, like Polestar and Xpeng Inc, are also exploring or setting up manufacturing bases in Europe and the US to avoid tariff challenges.
Despite these challenges, some European markets, such as Belgium, Denmark, and the UK, have shown growth in EV sales due to continued incentives, indicating that policy measures still play a crucial role in shaping market dynamics for electric vehicles.
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