Detroit Three automakers raise concerns about Japan trade deal
Matt Blunt, who heads the American Automotive Policy Council that represents the Detroit Three automakers, said "any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American built vehicles with high U.S. content is a bad deal for U.S. industry and US auto workers."
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Yahoo
10 minutes ago
- Yahoo
EU and US agree trade deal, with 15% tariffs for European exports to America
The United States and European Union have reached a trade deal, ending a months-long standoff between two of the world's key economic partners. After make-or-break negotiations between President Donald Trump and European Commission President Ursula Von der Leyen in Scotland, the pair agreed on a blanket US tariff on all EU goods of 15%. That is half the 30% import tax rate Trump had threatened to implement starting on Friday. Trump said the 27-member bloc would open its markets to US exporters with zero per cent tariffs on certain products. Von der Leyen also hailed the deal, saying it would bring stability for both allies, who together account for almost a third of global trade. Trump has threatened tariffs against major US trade partners in a bid to reorder the global economy and trim the American trade deficit. As well as the EU, he has also struck tariff agreements with the UK, Japan, Indonesia and Vietnam, although he has not achieved his goal of "90 deals in 90 days". Sunday's deal was announced after private talks between Trump and Von der Leyen at his Turnberry golf course in South Ayrshire. Trump - who is on a five-day visit to Scotland - said following a brief meeting with the European Commission president: "We have reached a deal. It's a good deal for everybody." "It's going to bring us closer together," he added. Von der Leyen also hailed it as a "huge deal", after "tough negotiations". Under the agreement, Trump said the EU would boost its investment in the US by $600bn (£446bn), purchase hundreds of billions of dollars of American military equipment and spend $750bn on energy. That investment in American liquified natural gas, oil and nuclear fuels would, Von der Leyen said, help reduce European reliance on Russian power sources. "I want to thank President Trump personally for his personal commitment and his leadership to achieve this breakthrough," she said. "He is a tough negotiator, but he is also a dealmaker." The US president also said a 50% tariff he has implemented on steel and aluminium globally would stay in place. Both sides can paint this agreement as something of a victory. For the EU, the tariffs could have been worse: it is not as good as the UK's 10% tariff rate, but is the same as the 15% rate that Japan negotiated. For the US it equates to the expectation of roughly $90bn of tariff revenue into government coffers – based on last year's trade figures, plus there's hundreds of billions of dollars of investment now due to come into the US. How are trade deals actually negotiated? They made America's clothing. Now they are getting punished for it In pictures: President Trump's private visit to Scotland Trade in goods between the EU and US totalled about $975.9bn last year. Last year the US imported about $606bn in goods from the EU and exported around $370bn. That imbalance, or trade deficit, is a sticking point for Trump. He says trade relationships like this mean the US is "losing". If he had followed through on tariffs against Europe, import taxes would have been levied on products from Spanish pharmaceuticals to Italian leather, German electronics and French cheese. The EU had said it was prepared to retaliate with tariffs on US goods including car parts, Boeing planes and beef. British Prime Minister Keir Starmer plans his own meeting with Trump at Turnberry on Monday. Trump will be in Aberdeen on Tuesday, where his family has another golf course and is opening a third next month. The president and his sons plan to help cut the ribbon on the new fairway. Australia to lift import ban on US beef after Trump tariffs tiff
Forbes
12 minutes ago
- Forbes
New NHL CBA Will Make It Tougher For Canadian Teams To Compete
TORONTO, ON - APRIL 27: Auston Matthews #34 of the Toronto Maple Leafs sets for a face-off against ... More the Boston Bruins during the second period in Game Four of the First Round of the 2024 Stanley Cup Playoffs at Scotiabank Arena on April 27, 2024 in Toronto, Ontario, Canada. (Photo by Kevin Sousa/NHLI via Getty Images) It was already tough for NHL teams in Canada to compete. Taxes are high, the weather isn't great and the media scrutiny is intense (just ask Mitch Marner). Well, the new NHL CBA is about to make things a bit more challenging for Canadian teams. The issue relates to taxes. Under the old CBA, all of a player's contract could be comprised of signing bonuses except for the CBA mandated yearly minimum salary. That has changed. The new CBA limits bonuses to 60% of a contract. Why does this matter? The Canadian tax on signing bonuses for non-residents of Canada is limited to 15%, with the player then paying the balance owing at the prevailing tax rate in his home state in the United States. So while a player who claims to be a resident of a U.S. state pays taxes in both Canada and the U.S., the combined tax savings is significant, potentially saving the player millions of dollars over the term of the contract. So to minimize the tax burden, some players on Canadian teams structure their contracts primarily by way of signing bonuses knowing those bonuses will only be taxed at 15% in Canada. That's why you sometimes see a player sign a deal with the CBA base salary of $775,000 and the other $10 million in signing bonuses. Taxes, taxes, taxes. Toronto Maple Leafs captain Auston Matthew signed a 4 year/$53,000,000 with $49,650,000 in signing bonuses. By structuring the contract with 94% in signing bonuses, Arizona resident Matthews stands to enjoy a substantial tax savings. On his last deal alone, Matthews saved around $4 million in taxes across his 5 year deal worth $58,201,250. MONTREAL, CANADA - FEBRUARY 3: Carey Price #31 of the Montreal Canadiens makes a pad save on the ... More puck on an attempt by Daniel Alfredsson #11 of the Ottawa Senators during the NHL game at the Bell Centre on February 3, 2013 in Montreal, Quebec, Canada. The Canadiens defeated the Senators 2-1. (Photo by) Matthews isn't the only player that has signed bonus laden contracts with a Canadian team to diminish the tax impact. Carey Price's contract has $70 million of the $84 million allocated to signing bonuses, which amounts to 84% of the total value of the contract. On his $122 million deal, 93% of Leon Draisaitl's contract is signing bonuses. And 75% of William Nylander's contract is comprised of signing bonuses. The money adds up quickly. With players having finite careers and finite earning potential, saving as much money as possible matters. And now there can be as much as an additional 35% of a player's income exposed to the very high Canadian tax rates. With the Canadiens, Leafs, Senators and Canucks leading the league in income tax rates, and with all seven Canadian teams in the top eleven in the NHL, things just got a bit more complicated for Canadian teams. It's tough enough with these teams competing against teams in tax free states like Florida, Tennessee, Nevada and Texas. And now, a relief valve for Canadian teams has been partially closed.
Bloomberg
12 minutes ago
- Bloomberg
EU, US Differ on Pharma Tariffs, Complicating Trump's Trade Deal
The European Union and the US appear to differ on some fundamental details in their new trade agreement, underscoring the difficulty they'll have in turning this deal into a reality. The EU said it would accept a 15% tariff on nearly all its exports to the US. President Donald Trump told reporters that the bloc also agreed to open up its 'countries to trade at zero tariff.'
