Trade war is about more than just trade, China's official news agency argues
'At its heart, this is not just a trade dispute — it is an encounter between two fundamentally different visions in this age of economic globalization: one rooted in openness, cooperation and shared growth; the other driven by confrontation, exclusion, and zero-sum mentality,' Xinhua wrote in commentary published early Sunday.
Writing in support of globalism, Xinhua added: 'China will firmly reject any proposal that compromises core principles or undermines the broader cause of global equity.'
The listed authors of the article were Gao Wencheng and Fan Yu, but Xinhua is the official state news agency of China and it only carries Chinese Communist Party-approved messaging.
In Sunday's commentary, Xinhua argued that the United States is hurting itself with its trade positions.
'For the United States itself,' Xinhua wrote, 'its tariff offensive amounts to economic self-harm: while it cannot cure underlying structural problems, it has triggered financial market volatility, fueled domestic inflation, eroded industrial capacity and raised the risk of recession.'
In contrast, Xinhua contended, China is taking a different path.
'At a time when globalization is under strain and protectionism is on the rise, China has chosen not to lock itself up. Instead, it has doubled down on opening up, advancing trade and investment liberalization with renewed determination and creating opportunities for shared development across the globe,' Xinhua said. 'China's position is clear: no matter how the global landscape shifts, it will remain committed to openness.'
President Donald Trump on Saturday hailed 'a total reset' of relations with China after talks in Switzerland involving Treasury Secretary Scott Bessent, adding, 'Great progress made.' The negotiations followed a deal that the Trump administration reached last week with the United Kingdom.
To settle this trade battle, the Chinese publication said the Trump administration must rethink how it views tariffs and trade.
'If Washington is truly committed to resolving trade frictions through dialogue, it must first confront the harm its tariff-driven policies have inflicted not only on the global trading system, but also on its own economy and citizens,' Xinhua said.
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Yahoo
10 minutes ago
- Yahoo
Stock market today: S&P 500, Nasdaq pace for record closes as Fed rate cut bets jump after CPI inflation report
US stocks moved higher on Tuesday as Wall Street digested fresh inflation data and President Trump revealed his pick to head the Bureau of Labor Statistics. The Dow Jones Industrial Average (^DJI) rose about 1% or more than 450 points. The S&P 500 (^GSPC) popped over 0.8%, while the tech-heavy Nasdaq (^IXIC) also added around 1%. Both the S&P 500 and Nasdaq Composite were pacing for record closes. The latest data from the Bureau of Labor Statistics showed that "core" inflation, which excludes volatile food and energy costs, rose 3.1% over the past year in July, ahead of June's 2.9% increase. The reading indicated that rising goods inflation is no longer being offset by easing services inflation. But on a headline basis, the Consumer Price Index (CPI) increased 2.7% year over year, matching June and coming in softer than economists' expectations of a 2.8% rise. After the inflation report's release, bets jumped on a Fed rate cut in September. 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Ethereum treasury company Bitmine Immersion plans to issue $20 billion worth of stock to buy more ETH Yahoo Finance's Jake Conley reports: Bitmine Immersion Technologies (BMNR) stock popped as much as 5% at the opening bell on Tuesday after ethereum (ETH-USD) rose another 5% to trade north of $4,400 and the company announced plans to sell up to another $20 billion worth of stock to increase its holdings of the cryptocurrency. Bitmine, whose board is led by investor Tom Lee, announced Monday that its holdings of ETH stood at $4.96 billion, or a little over 1.15 million tokens, meaning the company owns roughly 1% of all tokens in circulation. The company's goal is to eventually acquire 5% of the world's outstanding ETH tokens. Monday's news pushed the stock up more than 14%. The stock is up over 600% this year. Read more here. 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Markets seem to agree for now, with traders pricing in a roughly 94% chance the Fed lowers rates in September, per the CME FedWatch Tool. "You might be thinking, why not a bigger upfront move," Dutta wrote. "Doves on the FOMC need to fight one battle at a time. There is a wide contingent of folks on the FOMC with tariff derangement syndrome, not seeing cuts at all this year. They won't be able to make the leap from no cuts to a large upfront move overnight." Stocks open higher US stocks moved higher on Tuesday as Wall Street digested fresh inflation data and President Trump revealed his pick to head the Bureau of Labor Statistics. The Dow Jones Industrial Average (^DJI) rose about 0.5%. The S&P 500 (^GSPC) popped 0.4%, while the tech-heavy Nasdaq (^IXIC) led the gains rising more than 0.5%. September Fed rate cut bets hold steady following CPI Following Tuesday's July inflation reading, market bets on a Federal Reserve interest rate cut held relatively steady. 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The Canadian cannabis company traded hands at over $1 per share for the first time since February. Despite a 60% gain in the past month, however, shares are still off by 30% for the year. Other cannabis stocks saw a major lift as well. Trulieve (TCNNF) gained 38% on Monday, Curaleaf (CURLF) was up 35%, Green Thumb Industries (GTBIF) added 19%, Aurora (ACB) increased 16%, and Canopy Growth (CGC) surged 26%. On Friday, the Wall Street Journal reported that Trump told donors at a New Jersey fundraiser he was considering making marijuana a Schedule III drug, which would ease restrictions on the substance. Trump said he will make a final decision in the coming weeks. "We're looking at reclassification and we'll make a determination over the next — I would say over the next few weeks, and that determination hopefully will be the right one," Trump said. "It's a very complicated subject." 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We appreciate the President's strong leadership to advance these critical priorities and look forward to working closely with him and his Administration as we restore this great American company." Japan's Nikkei hits record high on tariff relief, tech rally The Nikkei 225 (^N225) hit a record high Tuesday as easing US tariff fears boosted optimism, led by tech stocks and tariff relief. Bloomberg News reports: Read more here. Trump blasts Goldman over tariff forecasts, tells David Solomon to 'focus on being a DJ' President Trump called out Goldman Sachs' (GS) research team for a stock market forecast it made earlier in the year, which initially predicted the S&P 500 (^GSPC) would finish the year lower as the US economy entered recession following the initial "Liberation Day" tariff announcements. Specifically, Trump targeted Goldman Sachs CEO David Solomon in a Truth Social Post Tuesday while also taking a pass at the executive's hobby as a DJ. "David Solomon and Goldman Sachs refuse to give credit where credit is due," Trump wrote in a Tuesday post in Truth Social while lauding the revenue tariffs are bring in and a stock market that's hovering near record highs. "They made a bad prediction a long time ago on both the Market repercussion and the Tariffs themselves, and they were wrong, just like they are wrong about so much else. I think that David should go out and get himself a new Economist or, maybe, he ought to just focus on being a DJ, and not bother running a major Financial Institution." Goldman Sachs declined to comment on the post. Read more here. President Trump called out Goldman Sachs' (GS) research team for a stock market forecast it made earlier in the year, which initially predicted the S&P 500 (^GSPC) would finish the year lower as the US economy entered recession following the initial "Liberation Day" tariff announcements. Specifically, Trump targeted Goldman Sachs CEO David Solomon in a Truth Social Post Tuesday while also taking a pass at the executive's hobby as a DJ. "David Solomon and Goldman Sachs refuse to give credit where credit is due," Trump wrote in a Tuesday post in Truth Social while lauding the revenue tariffs are bring in and a stock market that's hovering near record highs. "They made a bad prediction a long time ago on both the Market repercussion and the Tariffs themselves, and they were wrong, just like they are wrong about so much else. I think that David should go out and get himself a new Economist or, maybe, he ought to just focus on being a DJ, and not bother running a major Financial Institution." Goldman Sachs declined to comment on the post. Read more here. Ethereum treasury company Bitmine Immersion plans to issue $20 billion worth of stock to buy more ETH Yahoo Finance's Jake Conley reports: Bitmine Immersion Technologies (BMNR) stock popped as much as 5% at the opening bell on Tuesday after ethereum (ETH-USD) rose another 5% to trade north of $4,400 and the company announced plans to sell up to another $20 billion worth of stock to increase its holdings of the cryptocurrency. Bitmine, whose board is led by investor Tom Lee, announced Monday that its holdings of ETH stood at $4.96 billion, or a little over 1.15 million tokens, meaning the company owns roughly 1% of all tokens in circulation. The company's goal is to eventually acquire 5% of the world's outstanding ETH tokens. Monday's news pushed the stock up more than 14%. The stock is up over 600% this year. Read more here. Yahoo Finance's Jake Conley reports: Bitmine Immersion Technologies (BMNR) stock popped as much as 5% at the opening bell on Tuesday after ethereum (ETH-USD) rose another 5% to trade north of $4,400 and the company announced plans to sell up to another $20 billion worth of stock to increase its holdings of the cryptocurrency. Bitmine, whose board is led by investor Tom Lee, announced Monday that its holdings of ETH stood at $4.96 billion, or a little over 1.15 million tokens, meaning the company owns roughly 1% of all tokens in circulation. The company's goal is to eventually acquire 5% of the world's outstanding ETH tokens. Monday's news pushed the stock up more than 14%. The stock is up over 600% this year. Read more here. Everybody's buying the stock market dips now When markets first bounced off the April bottom, there was a flurry of data showing that retail traders had led the dip-buying. Many market bulls argued that this left room for institutional buying to pour into the market in the coming months and continue to lead stocks higher. Following the worst day of the summer for stocks, when the market sold off after a weaker-than-expected July jobs report, that's exactly what happened. Data from Bank of America released on Tuesday showed net buys by institutional clients were the biggest since September 2024 and the 10th-largest in history since 2008. Those clients preferred large-cap technology stocks. The $4.3 billion poured into single stocks last week by BofA clients marked the largest weekly inflow in two years. When markets first bounced off the April bottom, there was a flurry of data showing that retail traders had led the dip-buying. Many market bulls argued that this left room for institutional buying to pour into the market in the coming months and continue to lead stocks higher. Following the worst day of the summer for stocks, when the market sold off after a weaker-than-expected July jobs report, that's exactly what happened. Data from Bank of America released on Tuesday showed net buys by institutional clients were the biggest since September 2024 and the 10th-largest in history since 2008. Those clients preferred large-cap technology stocks. The $4.3 billion poured into single stocks last week by BofA clients marked the largest weekly inflow in two years. One reason July's CPI data supports the case for Fed rate cuts At a high level, July's Consumer Price Index (CPI) had a bit of something for everyone. The latest data from the Bureau of Labor Statistics showed that "core" inflation, which excludes volatile food and energy costs, rose 3.1% over the past year in July, ahead of June's 2.9% increase. But on a headline basis, the Consumer Price Index (CPI) increased 2.7% on an annual basis in July, matching June's number and slower than economists' expectations of a 2.8% rise. In a note to clients following the release, Renaissance Marco's head of economics Neil Dutta zoomed in on the headline increase, which came in better than expected. "If tariffs are causing an inflation problem, then headline inflation rates ought to be accelerating," Dutta wrote. "However, overall inflation is not rising as rapidly as expected likely because nominal growth remains sluggish." Dutta points out that over the past six months, headline CPI has increased at a 1.9% annualized rate, the slowest pace seen since October 2024. In his view, July's CPI data "cements" a September interest rate cut from the Fed. Markets seem to agree for now, with traders pricing in a roughly 94% chance the Fed lowers rates in September, per the CME FedWatch Tool. "You might be thinking, why not a bigger upfront move," Dutta wrote. "Doves on the FOMC need to fight one battle at a time. There is a wide contingent of folks on the FOMC with tariff derangement syndrome, not seeing cuts at all this year. They won't be able to make the leap from no cuts to a large upfront move overnight." At a high level, July's Consumer Price Index (CPI) had a bit of something for everyone. The latest data from the Bureau of Labor Statistics showed that "core" inflation, which excludes volatile food and energy costs, rose 3.1% over the past year in July, ahead of June's 2.9% increase. But on a headline basis, the Consumer Price Index (CPI) increased 2.7% on an annual basis in July, matching June's number and slower than economists' expectations of a 2.8% rise. In a note to clients following the release, Renaissance Marco's head of economics Neil Dutta zoomed in on the headline increase, which came in better than expected. "If tariffs are causing an inflation problem, then headline inflation rates ought to be accelerating," Dutta wrote. "However, overall inflation is not rising as rapidly as expected likely because nominal growth remains sluggish." Dutta points out that over the past six months, headline CPI has increased at a 1.9% annualized rate, the slowest pace seen since October 2024. In his view, July's CPI data "cements" a September interest rate cut from the Fed. Markets seem to agree for now, with traders pricing in a roughly 94% chance the Fed lowers rates in September, per the CME FedWatch Tool. "You might be thinking, why not a bigger upfront move," Dutta wrote. "Doves on the FOMC need to fight one battle at a time. There is a wide contingent of folks on the FOMC with tariff derangement syndrome, not seeing cuts at all this year. They won't be able to make the leap from no cuts to a large upfront move overnight." Stocks open higher US stocks moved higher on Tuesday as Wall Street digested fresh inflation data and President Trump revealed his pick to head the Bureau of Labor Statistics. The Dow Jones Industrial Average (^DJI) rose about 0.5%. The S&P 500 (^GSPC) popped 0.4%, while the tech-heavy Nasdaq (^IXIC) led the gains rising more than 0.5%. US stocks moved higher on Tuesday as Wall Street digested fresh inflation data and President Trump revealed his pick to head the Bureau of Labor Statistics. The Dow Jones Industrial Average (^DJI) rose about 0.5%. The S&P 500 (^GSPC) popped 0.4%, while the tech-heavy Nasdaq (^IXIC) led the gains rising more than 0.5%. September Fed rate cut bets hold steady following CPI Following Tuesday's July inflation reading, market bets on a Federal Reserve interest rate cut held relatively steady. Investors are now pricing in a roughly a 90% chance the central bank cuts rates in September, up slightly from a 86% chance seen the day prior, per the CME FedWatch Tool. Following Tuesday's July inflation reading, market bets on a Federal Reserve interest rate cut held relatively steady. Investors are now pricing in a roughly a 90% chance the central bank cuts rates in September, up slightly from a 86% chance seen the day prior, per the CME FedWatch Tool. 'Core' price increases accelerate more than expected in July Price increases accelerated more than expected in July. The latest data from the Bureau of Labor Statistics showed that on a "core" basis, which strips out the more volatile costs of food and gas, consumer prices increased 3.1% over the prior year in July, an increase from June's 2.9% and above economists' forecast for 3%. Core prices climbed 0.3% over the prior month, ahead of June's 0.2% increase but in line with expectations. The headline Consumer Price Index (CPI) showed prices increased 2.7% in July, unchanged from the month prior and below the 2.8% economists had expected. On a month-over-month basis, prices increased 0.2%, lower than the 0.3% seen the month prior. Price increases accelerated more than expected in July. The latest data from the Bureau of Labor Statistics showed that on a "core" basis, which strips out the more volatile costs of food and gas, consumer prices increased 3.1% over the prior year in July, an increase from June's 2.9% and above economists' forecast for 3%. Core prices climbed 0.3% over the prior month, ahead of June's 0.2% increase but in line with expectations. The headline Consumer Price Index (CPI) showed prices increased 2.7% in July, unchanged from the month prior and below the 2.8% economists had expected. On a month-over-month basis, prices increased 0.2%, lower than the 0.3% seen the month prior. Circle stock jumps on first earnings report since going public Circle (CRCL) posted higher revenue and reserve income on Tuesday in its first quarterly report since its IPO in June, as circulation of its stablecoin USDC (USDC-USD) spread. Circle stock rose 6% in premarket trading on Tuesday. Its total gains since going public are now 133%. Reuters reports: Read more here. Circle (CRCL) posted higher revenue and reserve income on Tuesday in its first quarterly report since its IPO in June, as circulation of its stablecoin USDC (USDC-USD) spread. Circle stock rose 6% in premarket trading on Tuesday. Its total gains since going public are now 133%. Reuters reports: Read more here. US small business optimism rebounds, but uncertainty clouds outlook Reuters reports: Read more here. Reuters reports: Read more here. Good morning. Here's what's happening today. Economic data: NFIB Small Business Optimism (July); Consumer Price Index (July); Real average hourly earnings (July) Earnings: Circle (CRCL), Pony AI (PONY), On Holding (ONON), CoreWeave (CRWV), Rigetti (RGTI), Cava (CAVA) Here are some of the biggest stories you may have missed overnight and early this morning: July inflation report expected to show prices accelerated Media musical chairs are reshaping the sports landscape Earnings live: Circle pops on higher revenue in first earnings report Intel stock rises after Trump praises CEO's 'amazing story' China urges firms to shun Nvidia chips, trade truce extended Musk accuses Apple of unfairly favoring OpenAI on iPhone Google and IBM believe workable quantum computer is in sight US small business optimism up but uncertainty clouds outlook Switzerland wants binding Trump commitment on gold tariffs Economic data: NFIB Small Business Optimism (July); Consumer Price Index (July); Real average hourly earnings (July) Earnings: Circle (CRCL), Pony AI (PONY), On Holding (ONON), CoreWeave (CRWV), Rigetti (RGTI), Cava (CAVA) Here are some of the biggest stories you may have missed overnight and early this morning: July inflation report expected to show prices accelerated Media musical chairs are reshaping the sports landscape Earnings live: Circle pops on higher revenue in first earnings report Intel stock rises after Trump praises CEO's 'amazing story' China urges firms to shun Nvidia chips, trade truce extended Musk accuses Apple of unfairly favoring OpenAI on iPhone Google and IBM believe workable quantum computer is in sight US small business optimism up but uncertainty clouds outlook Switzerland wants binding Trump commitment on gold tariffs Cannabis stocks soar as President Trump considers reclassifying marijuana Tilray (TLRY) stock rose another 10% in premarket trading on Tuesday after soaring 41% on Monday amid speculation that President Trump may move to reclassify marijuana as a less dangerous drug. The Canadian cannabis company traded hands at over $1 per share for the first time since February. Despite a 60% gain in the past month, however, shares are still off by 30% for the year. Other cannabis stocks saw a major lift as well. Trulieve (TCNNF) gained 38% on Monday, Curaleaf (CURLF) was up 35%, Green Thumb Industries (GTBIF) added 19%, Aurora (ACB) increased 16%, and Canopy Growth (CGC) surged 26%. On Friday, the Wall Street Journal reported that Trump told donors at a New Jersey fundraiser he was considering making marijuana a Schedule III drug, which would ease restrictions on the substance. Trump said he will make a final decision in the coming weeks. "We're looking at reclassification and we'll make a determination over the next — I would say over the next few weeks, and that determination hopefully will be the right one," Trump said. "It's a very complicated subject." Tilray (TLRY) stock rose another 10% in premarket trading on Tuesday after soaring 41% on Monday amid speculation that President Trump may move to reclassify marijuana as a less dangerous drug. The Canadian cannabis company traded hands at over $1 per share for the first time since February. Despite a 60% gain in the past month, however, shares are still off by 30% for the year. Other cannabis stocks saw a major lift as well. Trulieve (TCNNF) gained 38% on Monday, Curaleaf (CURLF) was up 35%, Green Thumb Industries (GTBIF) added 19%, Aurora (ACB) increased 16%, and Canopy Growth (CGC) surged 26%. On Friday, the Wall Street Journal reported that Trump told donors at a New Jersey fundraiser he was considering making marijuana a Schedule III drug, which would ease restrictions on the substance. Trump said he will make a final decision in the coming weeks. "We're looking at reclassification and we'll make a determination over the next — I would say over the next few weeks, and that determination hopefully will be the right one," Trump said. "It's a very complicated subject." Intel is still a disaster Intel (INTC) is rallying premarket as Trump walked back his apparent hate for the company's CEO, Lip-Bu Tan, after meeting on Monday. Don't be fooled by the price action, however. This isn't the case like Apple (AAPL), where CEO Tim Cook kisses Trump's butt and the company is exempt from various tariffs. Intel is a fundamental disaster right now. People in the industry I talk to are unsure if the company will ever come back to a state of health, given 1) how fast AI chip development is occurring, and 2) how far behind Nvidia and AMD Intel is. Intel's statement on the meeting: "Earlier today, Mr. Tan had the honor of meeting with President Trump for a candid and constructive discussion on Intel's commitment to strengthening U.S. technology and manufacturing leadership. We appreciate the President's strong leadership to advance these critical priorities and look forward to working closely with him and his Administration as we restore this great American company." Intel (INTC) is rallying premarket as Trump walked back his apparent hate for the company's CEO, Lip-Bu Tan, after meeting on Monday. Don't be fooled by the price action, however. This isn't the case like Apple (AAPL), where CEO Tim Cook kisses Trump's butt and the company is exempt from various tariffs. Intel is a fundamental disaster right now. People in the industry I talk to are unsure if the company will ever come back to a state of health, given 1) how fast AI chip development is occurring, and 2) how far behind Nvidia and AMD Intel is. Intel's statement on the meeting: "Earlier today, Mr. Tan had the honor of meeting with President Trump for a candid and constructive discussion on Intel's commitment to strengthening U.S. technology and manufacturing leadership. We appreciate the President's strong leadership to advance these critical priorities and look forward to working closely with him and his Administration as we restore this great American company." Japan's Nikkei hits record high on tariff relief, tech rally The Nikkei 225 (^N225) hit a record high Tuesday as easing US tariff fears boosted optimism, led by tech stocks and tariff relief. Bloomberg News reports: Read more here. The Nikkei 225 (^N225) hit a record high Tuesday as easing US tariff fears boosted optimism, led by tech stocks and tariff relief. Bloomberg News reports: Read more here.
Yahoo
10 minutes ago
- Yahoo
With Nvidia's Q2 earnings in sight, Trump deal could boost outlook
President Trump has confirmed that the US government will receive 15% of the sale of Nvidia's (NVDA) H20 chips to China. The move, along with a similar one that will see rival Advanced Micro Devices (AMD) turn over 15% of its China revenue, adds an interesting wrinkle to Nvidia's upcoming earnings schedule for Aug. 27. China, meanwhile, is urging companies not to use Nvidia's chips, though it hasn't banned them from doing so. Trump talked up the deal during a press conference Monday, adding that Nvidia CEO Jensen Huang negotiated the Trump administration down from an original 20% cut of the company's China sales. "I think this is certainly an opportunistic moment for the administration to raise additional dollars and in the name of China's desire for access to the leading semiconductor products from the United States," Futurum Group CEO Daniel Newman told Yahoo Finance. "And while we can argue that these are not the leading chips, they're the deprecated ones, there's clearly insatiable demand in the China market for Nvidia, and to some extent AMD," he added. Nvidia said in a statement, "We follow rules the US government sets for our participation in worldwide markets. While we haven't shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide." The payment, which could face legal challenges, won't show up in Nvidia's Q2 report but could boost its Q3 outlook if the administration moves quickly. While the company might not bring in as much for itself from China sales as investors had hoped, the agreement is Nvidia's current best chance to compete in one of the world's largest AI markets. "From my perspective, it is a positive for those companies. As you know, it opens a market where there's still high demand. Nvidia, especially, still has a lot of cache with its name," Forrester senior analyst Alvin Nguyen explained. Access to China now helps Nvidia in the long run Regaining access to China doesn't just help Nvidia in the near term — it also sets up the company for continued sales into the future as customers develop and deploy apps and services using its CUDA software. According to Bernstein analyst Stacy Rasgon, while rival Chinese chipmakers might match and, in some cases, exceed the H20's performance, developers are already building on CUDA, making switching to competing platforms costly and difficult. "The Chinese already have products, local products, that are actually, from the performance, better than what Nvidia is allowed to sell," Rasgon told Yahoo Finance. "Nvidia has the ecosystem advantage," he added. "The Chinese developers want to use Nvidia. They built their whole infrastructure on Nvidia. But if Nvidia is not allowed to sell, you're encouraging those local developers to coalesce around Huawei and build up that ecosystem." Rasgon, however, warned that if the US doesn't allow Nvidia to scale its AI chip's capabilities over time, developers could end up ditching the company's offerings for those of its rivals. "The longer we can keep the US guys, appropriately balancing against the national shared security concerns, playing there, the better," Rasgon said. The fear is that if Nvidia and AMD are completely boxed out of the Chinese market, China will continue to build up its AI capabilities to the point where the global market is split between US and Chinese AI companies, raising potential national security concerns. Don't expect sales to show up just yet While Nvidia may soon get the go-ahead to sell its chips into China again, revenue isn't likely to start showing up in the company's bottom line until the third or fourth quarter. That's because Nvidia will need to get its supply chain running again. The company is also still expected to see an $8 billion hit on Q2 earnings due to the Trump administration's original decision to ban the H20 chips. Nvidia saw a $4.5 billion impact from the ban in Q1. There's also the question of whether Nvidia will ultimately pick up the tab for Trump's new fee. According to Futurum Group's Newman, the company will likely pass on the cost to its customers. "My assumption is, if the demand is as significant as I believe it is, Nvidia and AMD will be able to negotiate a higher price to cover the potential cost," Newman said. Trump said during his press conference that he is also considering allowing Nvidia to ship a degraded version of its Blackwell chip technology to China. That could further boost Nvidia's revenue in the region. But it could still be some time before the chip hits the market. In the meantime, Nvidia can lean on its H20. As long as the White House doesn't ban it again. Email Daniel Howley at dhowley@ Follow him on X/Twitter at @DanielHowley.
Yahoo
10 minutes ago
- Yahoo
Tariff inflation remains spotty
President Trump's new import taxes seem very likely to boost prices for thousands of everyday products. Just not yet. When the inflation data for June came out in mid-July, notable jumps in the price levels of many imported products suggested tariff inflation had arrived, as many economists have been forecasting. But the July data, released Aug. 12, shows a reversal in some of those price hikes, which is unexpected. The following charts show that some price hikes in product categories dominated by imports have abated, at least for one month. In five key categories — appliances, clothing, furniture, sporting goods, and toys — substantial price increases from May to June reversed the following month. If the higher cost of tariffs was flowing freely into the retail economy, those price hikes would have continued in July. Rising inflation is still a concern. Though the annual inflation rate stayed steady in July at 2.7%, there were still worrisome upward price pressures. 'Core' inflation, which excludes volatile food and energy prices, rose at a 3.1% annual rate, the most in six months. Costlier medical care helped push services inflation up by 3.8% year over year. Falling gasoline prices help explain why overall inflation rose by less than core inflation, which doesn't include gasoline. There are still signs of tariff inflation. The cost of tools and footwear, which are mostly imported products, jumped during the last two months. Coffee prices rose 2.3% from June to July and are up 14.5% during the last 12 months. Part of that is likely due to tariffs, though other supply-chain issues are also a factor. Read more: July CPI breakdown: Consumers feel the crunch of accelerating inflation The Trump tariffs are only beginning to filter into the economy, and for now, the tariff effects are 'messy,' according to Oxford Economics. 'There are clear signs tariffs are pushing a range of goods prices higher, but some major tariffed items, including autos and apparel, have yet to show much impact,' the forecasting firm explained in an Aug. 12 report. American importers paying the tariffs are handling the higher costs in a variety of different ways, making it difficult to generalize how Trump's new taxes are affecting the overall economy. Some importers massively stocked up before the Trump tariffs went into effect and are still selling pre-tariff inventory. Others are eating the costs temporarily, which is cutting into profits at some companies. It's also possible that consumers feeling pinched are cutting back on purchases, with slack demand keeping prices in check. Most economists still expect the Trump tariffs to stoke inflation and cause substantial price hikes in many product categories. The average import tax on some $3 trillion worth of goods has risen from 2.5% before Trump took office to about 19%. Trump brags about new tariff revenue flowing to the US Treasury, but that is mostly new taxes paid by American businesses and consumers, and there's no way to suppress the economic harm higher taxes cause. Read more: What Trump's tariffs mean for the economy and your wallet 'One can observe a gathering pace of inflation inside the core as goods prices continue to increase,' Joe Brusuelas, chief economist at RSM, explained in an Aug. 12 analysis. 'Investors and firm managers should prepare for thinner margins and rising inflation throughout the remainder of this year and into next.' That means moderating July prices in some categories may turn out to be an aberration. Rick Newman is a senior columnist for Yahoo Finance. Follow him on Bluesky and X: @rickjnewman. Click here for political news related to business and money policies that will shape tomorrow's stock prices. 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
