Mexico Raises Import Taxes on Online Purchases from Shein, Temu
The new 33.5% levy, raised from a prior 19%, will apply to goods imported from China and other countries with which Mexico has no trade agreement. Products coming from the US and Canada via courier service will continue to pay a 17% duty if priced between $50 and $117. Those priced below that range will remain exempt while those above will now pay a 19% tax.
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Yahoo
17 minutes ago
- Yahoo
Dollar mixed after four-day rally, Fed meeting in focus
By Stefano Rebaudo (Reuters) -The U.S. dollar struggled for direction on Wednesday after a four-day winning streak, as investors shifted their focus to the outcome of the Federal Reserve's policy meeting later in the session and to upcoming economic data. Meanwhile, the euro was poised to record its first monthly drop since December 2024,, following a sharp reaction to a U.S.-European Union trade deal earlier this week. Investors were hesitant to place bets before crucial economic reports and central bank meetings in Canada, Japan and the United States. 'Markets will be paying attention to (Fed Chair) Jerome Powell's remarks, regarding any signs of internal dissent within the committee and the chair's stance amid ongoing tensions with the White House,' said Julien Lafargue, chief market strategist at Barclays Private Bank and Wealth Management. 'A rate cut in September remains a strong base case, much will depend on incoming data, starting with the U.S. jobs report due this Friday,' he added. The U.S. central bank, to President Donald Trump's chagrin, will likely leave interest rates unchanged on Wednesday. The dollar index was up 0.02% at 98.774. It hit a 5-week high at 98.923 on Tuesday and was on course to post its first month of gains this year. Analysts noted the selloff in U.S. assets — including Treasuries and the dollar — began in early April, when the U.S. appeared poised to launch a trade war against its major allies. Trade agreements struck with Japan last week and the EU over the weekend signalled a renewed U.S. commitment to global engagement, easing investor concerns. Investors' focus is now on negotiations between China and the U.S. after officials agreed to seek an extension of their 90-day tariff truce. China and the U.S remain important trade and economic partners, the Chinese commerce minister told a U.S. business delegation on Wednesday, according to his ministry. The euro was down 0.03% to $1.1540 after dropping for the first two days of the week and hitting a one-month low of $1.15185 on Tuesday. The euro is up 11.7% since the start of the year but on course for its first monthly drop in 2025. "The stark divergence in growth news between the U.S. and Europe should underpin the euro bearish momentum," said Francesco Pesole, forex strategist at ING. Data showed on Wednesday that the German economy contracted in the second quarter, while France's economy beat forecasts. Some analysts expressed concern about the economic impact of tariffs and their implications for the European Central Bank's rate outlook. However, markets adjusted their expectations for the ECB's easing path, pushing back the timing of a potential rate cut to March 2026 last week, following the U.S.-Japan trade deal and an ECB hawkish tilt after its policy meeting. 'On a comparative basis, the outcome (of trade negotiations) is welcome, if not wholly reassuring (for the euro area),' said Modupe Adegbembo, economist at Jefferies. 'The EU has successfully avoided escalation and has not lost significant ground relative to other major exporters,' Adegbembo added, noting the 5% baseline tariff is more favourable than the 30% applied to Chinese goods and is on par with Japan's 15%. The yen firmed 0.33% to 147.98 against the dollar. The spotlight will be on comments from BoJ Governor Kazuo Ueda as investors hope the recent trade deal between Japan and the U.S. paves the way for the central bank to raise rates. Analysts flagged that a divergence in tone from Ueda this week relative to Deputy Governor Shinichi Uchida last week, who was perceived as being hawkish, could be a catalyst for further yen selling over the near-term. Sign in to access your portfolio
Newsweek
an hour ago
- Newsweek
America's Toymakers are in Trouble
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. America's biggest toymakers are facing down a grim financial reality, as economic headwinds and U.S. trade policy continue to squeeze margins and see higher costs being passed onto the consumer. Financial results released last week by America's largest toy manufacturers, Mattel and Hasbro, revealed the continued costs of the trade war and lingering uncertainty around tariffs. Mattel, whose brand portfolio includes Barbie dolls and the UNO card game, reported a 6 percent decline in second quarter net sales. Meanwhile, Hasbro, the company behind Nerf and My Little Pony, reported a 16 percent decline in revenue for its core toys and games business. While this was almost offset by significant improvements in its trading card and digital gaming segments, the company's net sales were nevertheless down 1 percent year-over-year as it reported an $856 million net loss for the quarter. Newsweek contacted Mattel and Hasbro via email on Tuesday for comment. In their results and subsequent earnings calls, both companies cited the continued uncertainty created by tariffs, which continue to weigh on supply chains and inventory levels. Hasbro attributed its net loss in the quarter to a $1 billion impairment charge related to its consumer products segment and caused by the implementation of tariffs. While most sectors of the economy are exposed to major shifts in trade policy, toys are particularly vulnerable given the industry's reliance on globalized supply chains and outsized dependence on Chinese imports, with around three-quarters of the toys sold in America manufactured in China. Prior to the 90-day pause agreed between the U.S. and China in May—which has seen tariffs temporarily lowered from their previous, staggering rates—the two companies were among those who said they may need to raise prices to offset the impact of tariffs. This led to toys—dolls in particular—becoming a surprising flash point in the debate over trade policy, and sparked a confrontation between the Trump administration and Mattel after CEO Ynon Kreiz said that the company had no plans to relocate manufacturing operations to the U.S. America's biggest toymakers are facing down a grim financial reality, as economic headwinds and U.S. trade policy continue to squeeze margins. America's biggest toymakers are facing down a grim financial reality, as economic headwinds and U.S. trade policy continue to squeeze margins. Photo-illustration by Newsweek/Getty/Canva Though both companies said that tariff-related headwinds had eased from earlier this year, price impacts are still set to take effect. Mattel's CFO Paul Ruh told analysts last week that only 40 to 50 percent of toys would remain under $20 despite given the "pricing actions" tariffs had demanded. Hasbro CEO Chris Cocks told CNN earlier this month that toy prices may increase this fall because of tariffs on Chinese and Vietnamese goods. "We have already raised prices due to the tariffs and, unfortunately, the consumer will be paying for this," said Isaac Larian, CEO and founder of the California-based toy company MGA Entertainment. Larian told Newsweek that MGA, known primarily as the company behind Bratz dolls, had tried to absorb the costs associated with tariffs, but that "with small margins in the toy industry we have no choice but to pass along the tariff increases." The price of toys, games, hobbies and play equipment increased by 2.2 percent between April and May, compared to the 0.1 percent increase for all items, according to Labor Department Data. 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Larian expects further price increases throughout the remainder of 2025, but is holding out hope for negotiations between the U.S. and China to permanently bring down tariffs to a manageable level. Representatives of the two countries recently met in Stockholm for another round of trade talks. While the discussions concluded without a fully-fledged agreement to reduce tariffs, Treasury Secretary Scott Bessent described the meeting as "very productive." International Trade Representative for the Chinese Ministry of Commerce Li Chenggang said that both sides will "continue to push" for an extension on the 90-day pause beyond the deadline of August 12, CNN reports.
Yahoo
an hour ago
- Yahoo
China's soymeal glut raises demand doubts ahead of US soybean export season
By Ella Cao and Naveen Thukral BEIJING/SINGAPORE (Reuters) -China's appetite for soybeans is likely to weaken during the peak U.S. marketing season later this year, as record imports earlier in 2025 and tepid demand from animal feed producers have pushed up soymeal inventories at home, trade sources said. The world's biggest soybean importer has yet to book U.S. cargoes for the fourth quarter, with traders closely monitoring talks in Stockholm aimed at resolving longstanding economic disputes at the centre of the U.S.-China trade war. A slowdown in Chinese demand could pressure Chicago soybean futures, which are already down for a second consecutive week on expectations of a bumper U.S. harvest. [GRA/] China's soymeal futures fell for a fourth straight session on Tuesday amid ample supplies. In the physical market, spot soymeal in north China was quoted at 2,925 yuan ($408) per metric ton, down 6.5% from 3,130 yuan a year ago, said Wang Wenshen, an analyst at Shandong province-based consultancy Sublime China Information. "If third-quarter prices stay weak and crushers face losses, fourth-quarter soybean purchases may fall short of expectations," Wang said. The last quarter of the year is typically the main U.S. soybean marketing season. China's overall soybean imports hit a record high in May and their second-highest level in June, boosting oilseed processing and leading to a buildup in soymeal inventories, traders said. CRUSHER SHUTDOWNS The surplus is straining China's crushing plants, with some already shutting down due to storage constraints. "Small-scale shutdowns have already begun at crushing plants in regions like south China primarily because soybean meal has accumulated with no room for more stock," said a Shanghai-based trader, adding that a broader suspension was "highly likely". Crush margins in Rizhao, China's main processing hub, have been negative since mid-May. The glut has been worsened by weak demand from animal feed producers amid sluggish meat consumption in the world's top pork market. Crushers will face "huge soymeal stock pressure" over the next one to two months, said Cheang Kang Wei, vice president at StoneX in Singapore. Authorities have pledged to cut breeding sow numbers, curb new capacity, and reduce soymeal use in feed to stabilise meat prices after steep declines this year, measures analysts say will further limit soymeal consumption. China's purchases of Argentine soymeal, amid high tariffs of U.S. beans, in the last few weeks are likely to add to the glut. "Even with such big supply of soymeal in the local market, it is profitable to import meal from Argentina," said a Singapore-based trader at an international trading company. "This will only add to the stocks of soymeal." A trade deal with Washington could shift buying patterns. "If a trade deal is reached, Chinese buyers could resume U.S. purchases for the fourth quarter, as prices are favourable without tariffs," said Johnny Xiang, founder of Beijing-based AgRadar Consulting. ($1 = 7.1767 Chinese yuan) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
