00:00The French, or the brandy tariffs, they do predominantly impact France.
00:0499% of the brandy coming from the EU into China comes from there.
00:08That's an industry that was worth $1.8 or so billion last year.
00:13When you're looking at cars and car parts coming from here in Germany to China,
00:19that's just over $29 billion.
00:22So it's an awful lot of money and it is being received, the news anyway,
00:27not too positively here in Europe's largest car manufacturing country.
00:35Those criteria, large-engined, combustion-engined vehicles,
00:39well, that is essentially what German manufacturers export to China,
00:43mostly at the higher end of what they offer.
00:48Manufacturers like BMW, Volkswagen, Mercedes and Porsche
00:53would all be hit particularly hard by that.
00:56All of those brands factor in a large portion of their profit for the year
01:01to come from sales to China.
01:03I mentioned the overall sale was just over $29 billion.
01:07Some of those companies set aside around 40% of their business every year
01:13to do trade with China.
01:14So they're extremely worried about what they're seeing
01:17and the market's equally worried and that's being reflected today.
01:20What we've seen is the BMW share price drop by around 3%
01:25and the Mercedes share price as well down by around 2%.
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