Outlines Emerge of a Trump-Engineered New Trade Landscape
Trump on Tuesday announced a deal with Japan that sets tariffs on the nation's imports at 15%, including for autos — by far the biggest component of the trade deficit between the countries. A separate agreement with the Philippines set a 19% rate, the same level as Indonesia agreed and a percentage point below Vietnam's 20% baseline level, signaling that the bulk of Southeast Asia is likely to get similar deals.
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San Francisco Chronicle
a minute ago
- San Francisco Chronicle
Attorneys: 'Alligator Alcatraz' detainees held without charges, barred from legal access
Lawyers seeking a temporary restraining order against an immigration detention center in the Florida Everglades say that 'Alligator Alcatraz' detainees have been barred from meeting attorneys, are being held without any charges and that a federal immigration court has canceled bond hearings. A virtual hearing in federal court in Miami was being held Monday on a lawsuit that was filed July 16. A new motion on the case was filed Friday. Lawyers who have shown up for bond hearings for 'Alligator Alcatraz' detainees have been told that the immigration court doesn't have jurisdiction over their clients, the attorneys wrote in court papers. The immigration attorneys demanded that federal and state officials identify an immigration court that has jurisdiction over the detainees and start accepting petitions for bond, claiming the detainees constitutional rights to due process are being violated. 'This is an unprecedented situation where hundreds of detainees are held incommunicado, with no ability to access the courts, under legal authority that has never been explained and may not exist,' the immigration attorneys wrote. 'This is an unprecedented and disturbing situation.' The lawsuit is the second one challenging 'Alligator Alcatraz.' Environmental groups last month sued federal and state officials asking that the project built on an airstrip in the heart of the Florida Everglades be halted because the process didn't follow state and federal environmental laws. Critics have condemned the facility as a cruel and inhumane threat to the ecologically sensitive wetlands, while Florida Gov. Ron DeSantis and other Republican state officials have defended it as part of the state's aggressive push to support President Donald Trump's crackdown on illegal immigration. ___
Fast Company
a minute ago
- Fast Company
Why the Fed will likely keep interest rates unchanged at its upcoming meeting
The U.S. central bank, to President Donald Trump's chagrin, will likely leave interest rates unchanged at a policy meeting this week, but that's not to say there won't be a vigorous debate, with one if not two Federal Reserve governors possibly casting a rare dissent in support of lower borrowing costs. The majority of Fed policymakers, though, remain concerned that Trump's tariffs could undo progress on bringing inflation back to the central bank's 2% goal, outweighing for now worries about the labor market. The trade deal struck between the U.S. and Japan last week, with tariffs set at 15%, and reported progress for a similar rate in talks with the European Union make it more likely that import duties overall will end up well below the punishing levels Trump announced on his April 2 'Liberation Day.' Even so, U.S. tariffs are at their highest level in 90 years, and the effects are starting to show up in household purchases. A surge in prices of goods like furnishings and apparel helped drive overall consumer inflation to an annualized 3.5% pace in June. So soon after a bout of 40-year-high inflation, policymakers fear fast-rising prices could 'freak out' households, as Chicago Fed President Austan Goolsbee sometimes phrases it, triggering a wider inflationary spiral. While Fed Chair Jerome Powell says that is only one of many possible scenarios, he has argued the central bank can wait to learn more before adjusting rates, especially with a 4.1% unemployment rate near or below estimates of full employment. Other data and the outlook amid Trump's broader economic program, including tax cuts and deregulation, invite differing views on the central bank's policy-setting Federal Open Market Committee. 'Considering the clear divergence in the near-term policy outlook between (Fed Governor Christopher) Waller and (Fed Vice Chair of Supervision Michelle) Bowman and the other FOMC participants, we expect both Waller and Bowman to dissent in favor of a 25-bp (basis-point) cut,' wrote analysts at Nomura Securities, one of several Wall Street firms predicting the first double dissent from Fed governors since 1993. Both Waller and Bowman were appointed to the Board of Governors by Trump, who has excoriated Powell for resisting the White House's demand for an immediate rate cut and broached the idea of firing the Fed chief before his term expires next May. Last week, during a rare but tense visit to the Fed's headquarters in Washington, Trump once again pressed the case for lower rates, though he also said he didn't think it was necessary to fire Powell. Waller, who has been mentioned as a possible successor to Powell, sees private-sector job growth nearing stall speed and fears companies could turn to layoffs in the absence of easier credit conditions. Private-sector hiring accounted for just half of the gain of 147,000 U.S. jobs in June, and Waller says other data suggests even that reading overestimates the true increase. Bowman has also expressed worries about labor market deterioration and feels a rate cut may be needed to prevent it. Both are skeptical tariffs will lead to persistent inflation. Several others, including Boston Fed President Susan Collins, also see recent muted price increases as suggesting tariffs may not push up inflation as much as earlier thought. RECORD-BREAKING ECONOMY Ahead of the scheduled release on Wednesday of the Fed's policy statement, the Commerce Department is widely expected to report that economic activity reaccelerated in the second quarter, pushing total output above $30 trillion in non-inflation-adjusted terms for the first time. That may shore up Trump's bragging rights to what he says is a U.S. economy that would take off like a rocket if only the Fed cut rates. But central bankers will see it as more ambiguous. The expected increase follows a first-quarter drop in GDP from a historic rush to front-run Trump's tariffs on imports from U.S. trading partners. 'While a sharp reversal in imports will mechanically boost Q2 GDP, tariff-induced cost pressures, persistent policy uncertainty, severely curtailed immigration, and elevated interest rates are collectively dampening employment, business investment and household consumption,' wrote Gregory Daco, chief economist at EY-Parthenon. 'The U.S. economy continues to navigate a complex set of cross-currents, obscuring a clear reading of its underlying momentum.' Consumer spending, accounting for two-thirds of economic output, has been reasonably strong, with retail sales rising more than expected last month. Though household bank account balances are lower on a year-over-year basis, data from the JPMorganChase Institute last week suggests overall cash reserves are in better shape. Bank credit extended to consumers and businesses is up from the prior year for the first time in more than two years, Fed data shows. Similarly, loan volume and demand rose beginning in late May after sluggish or no growth since the year began, a Dallas Fed survey shows, and bankers expect increased economic activity and rising credit demand through the end of this year. In another sign the economy isn't rolling over, Fed data shows manufacturing output grew last quarter, albeit by a slower 2.1% annualized pace than the first quarter's 3.7% pace. A measure of how fully firms are using their resources edged up to 77.6% in June from 77.5% in May. Still, business investment may be faltering. Data on Friday showed non-defense capital goods orders excluding aircraft unexpectedly dropped 0.7% in June as firms grew more cautious about spending. Other data points to a weakening economy, bolstering the minority argument for rate cuts soon. Employment growth has slowed and hiring breadth is narrowing, led by just a few service-providing sectors. Finding a job after losing one is getting harder. Half of those collecting unemployment benefits remain on the jobless rolls for at least two-and-a-half months. And the housing and construction sectors are clearly on the back foot, feeling the drag of 30-year fixed-rate mortgages hovering near 7%. Overall construction spending has fallen for nine straight months — a streak unseen since the 2007-2009 financial crisis — and new single-family home starts were the lowest in nearly a year in June. Sales of new and existing homes remain anemic. 'Weak housing demand is convincing evidence that rates are still restrictive, with factors like a softening labor market and high uncertainty possibly also weighing on demand,' Citi economists wrote.
The Drive
a minute ago
- The Drive
Toyota's New Mid-Engine Testbed Sidelined by Development 'Difficulties'
The latest car news, reviews, and features. Toyota's not-so-secret mid-engine sports car program has hit a snag. The GR Yaris M Concept, which the company announced back in January, has still not made an appearance in Japan's Super Taikyu racing series. With five of the seven races scheduled for 2025 already in the bag, it's becoming increasingly unlikely that the GR Yaris M will race in the series this year. Why? Well, as it turns out, designing a proper mid-engine performance car is tricky. 'The GR Yaris M Concept exhibited at the Tokyo Auto Salon 2025 held in January is undergoing full team development in pursuit of further possibilities for the GR Yaris, with a view to participating in the Super Taikyu Series,' Toyota's announcement said. 'While many challenges have been identified and improvements are ongoing, there are difficulties unique to midship-mounted vehicles in terms of braking, steering, and driving, and Toyota has therefore decided not to participate with this vehicle at Autopolis to refine it further,' it said. With the new mid-engine race car still sidelined, Toyota instead brought along the #32 GR Yaris (a standard front-engine car, prepped as it was for the Nürburgring 24 Hour Race held in June) and the ENEOS-built #28 GR86. Mid-engine platforms are tough to dial in—just ask General Motors, which spent more time developing the C8 Chevrolet Corvette than just about anybody anticipated. It says a lot that even Toyota, which is in a position to draw on institutional knowledge from its development of the MR2, is facing setbacks. If there's any good news here, it's the fact that Toyota has acknowledged the delay openly. A pet racing project like this might normally die quietly in the face of mounting market pressures. Public updates like this suggest that this is more than just a frivolous boondoggle, meaning that it likely has implications for Toyota's future sports car development. In other words, new MR2 when? Got a news tip? Let us know at tips@
