logo
US says it won't rush trade deals ahead of August deadline, will engage China

US says it won't rush trade deals ahead of August deadline, will engage China

CNA3 days ago
WASHINGTON: The Trump administration is prioritising the quality of trade agreements over meeting a looming deadline, US Treasury Secretary Scott Bessent said on Monday (Jul 21), as countries scramble to avoid steep new tariffs set to take effect on Aug 1.
'We're not going to rush for the sake of doing deals,' Bessent told CNBC. Asked whether the deadline could be extended for countries engaged in talks, he said it would be up to President Donald Trump.
'If we somehow boomerang back to the August 1 tariff, I would think that a higher tariff level will put more pressure on those countries to come with better agreements,' he said.
Trump has roiled global markets with sweeping tariff threats targeting most major US trading partners. But his administration has fallen short of securing deals with many countries, including India, the European Union and Japan, where negotiations have proven more difficult than anticipated.
WHITE HOUSE, EU RESPONSE
White House press secretary Karoline Leavitt said Trump may raise trade during talks with Philippine President Ferdinand Marcos Jr at the White House on Tuesday.
She said the US remained engaged with governments globally and could announce new deals or issue more tariff notifications before the deadline, but offered no further details.
Meanwhile, European Union diplomats said the bloc was considering broader counter-measures amid dimming prospects for a deal. Germany and other EU countries are weighing the use of 'anti-coercion' tools that could restrict US access to public tenders or target services.
'The negotiations over the level of tariffs are currently very intense,' said German Chancellor Friedrich Merz. 'The Americans are quite clearly not willing to agree to a symmetrical tariff arrangement.'
CHINA TALKS, JAPAN AND INDIA
On China, Bessent said talks would resume 'in the very near future.'
'Trade is in a good place,' he said, adding that future discussions could focus on Beijing's continued purchases of sanctioned Iranian and Russian oil, and its excess capacity in sectors such as steel. 'The elephant in the room is this great rebalancing that the Chinese need to do.'
Bessent also said he would encourage Europe to follow the US if it implements secondary tariffs on Russia.
Japan's top trade envoy Ryosei Akazawa arrived in Washington on Monday for his eighth visit in three months. His trip comes after Prime Minister Shigeru Ishiba's ruling coalition suffered a setback in upper house elections, in part due to voter frustration over US tariffs.
Bessent, who returned from a visit to Japan on Sunday, said Washington was focused on securing the best deal for Americans, not Japan's domestic political dynamics.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

EU says China's links with Russia now ‘determining factor' in ties
EU says China's links with Russia now ‘determining factor' in ties

Straits Times

time31 minutes ago

  • Straits Times

EU says China's links with Russia now ‘determining factor' in ties

Find out what's new on ST website and app. EU chief Ursula von der Leyen (left) and European Council President Antonio Costa briefing the media after their meetings in Beijing, China, on July 24. BEIJING - EU chief Ursula von der Leyen warned on July 24 that China's ties with Russia were now the 'determining' factor in its relations with the European Union, as she wrapped up a tense summit in Beijing that also saw China agree to speed up exports of rare earth minerals to the bloc. China's leadership has sought to draw the European Union closer as it positions itself as a more reliable partner than the United States and a bedrock of stability in a troubled world. But while nominally intended to celebrate 50 years of diplomatic ties, the EU has made clear there are deep divisions over trade, fears that cheap, subsidised Chinese goods could overwhelm European markets and Beijing's tacit support for Russia's war against Ukraine. Brussels says China's deepening political and economic relations with Moscow since the 2022 invasion have helped Russia's economy weather sweeping Western sanctions. Beijing denies that claim. Wrapping up that summit, Dr von der Leyen told a news conference in Beijing that the bloc had made clear that the issue was now the 'determining' factor in its relations with China. She and European Council President Antonio Costa expressed 'our expectations that China would follow up on our concerns and the expectation that it would use its influence to bring Russia to accept a ceasefire, to come to the negotiation table, enter peace talks and put an end to the bloodshed', Dr von der Leyen said. She also said the bloc agreed with Beijing to an 'upgraded' mechanism for Chinese exports of rare earth minerals – another key sticking point in ties. Top stories Swipe. Select. Stay informed. Asia 11 Thai civilians killed as Thai and Cambodian militaries clash at disputed border: Reports Asia Deadly Thai-Cambodian dispute puts Asean's relevance on the line Asia Live: People evacuated from border regions amid deadly Thailand-Cambodia clash Singapore Technology can help efforts to shift healthcare delivery towards the community: Ong Ye Kung Singapore Mice industry will need more manpower in areas like technology, sustainability: Alvin Tan Singapore Khatib Camp to make way for housing, with its functions moving to Amoy Quee Camp Singapore Mindef to set up new volunteer management unit to grow volunteer pool Singapore Primary 1 registration: 29 schools to conduct ballot in Phase 2B China dominates the global industry for extracting and refining rare earths. Since April, it has required licences to export some of the strategic materials, triggering anxiety among businesses worldwide. 'If there is a delay... we have now established a mechanism where the companies can immediately ask us to mediate and to find out why there's a delay on the delivery of the critical raw materials,' Dr von der Leyen said. And Mr Costa said the officials had raised human rights concerns with Chinese counterparts. 'Deepen cooperation' China, in contrast, framed the July 24 summit as a way for the bloc and Beijing to deepen trust in a turbulent world. Welcoming Dr von der Leyen and Mr Costa at Beijing's ornate Great Hall of the People, President Xi Jinping said 'the more severe and complex the international situation is, the more important it is for China and the EU to strengthen communication, increase mutual trust and deepen cooperation'. 'The challenges facing Europe at present do not come from China,' he said, calling on both sides to 'make correct strategic choices'. Mr Costa also stressed to the Chinese leader that the EU wanted to see 'concrete progress on issues related to trade and the economy, and we both want our relationship to be... mutually beneficial'. Chinese Premier Li Qiang told the EU leaders in a separate meeting that 'close cooperation' was a 'natural choice' for the two major economies. 'As long as both China and the EU earnestly uphold free trade, the international economy and trade will stay dynamic', he said. Climate agreement In rare agreement, China and the EU vowed to 'step up' efforts to address climate change. The warming planet is historically an area of convergence between Brussels and Beijing, with both willing to cooperate on combating climate change. Chinese and European leaders agreed on enhancing bilateral cooperation in energy transition and committed to accelerating global renewable energy deployment, a joint statement said. The EU also flagged its yawning trade deficit with China that stood at around US$360 billion (S$460 million) in 2024 and which Dr von der Leyen described as 'unsustainable'. Beijing dismissed those concerns, insisting that Brussels must 'rebalance its mentality', not its economic ties with China. If EU concerns were not addressed, 'our industry and citizens will demand that we defend our interests', Dr von der Leyen told Premier Li. The EU has imposed hefty tariffs on electric vehicles imported from China, arguing that Beijing's subsidies unfairly undercut European competitors. China has rebuffed that claim and announced what were widely seen as retaliatory probes into imported European pork, brandy and dairy products. AFP

Dollar holds steady after ECB leaves rates alone, tariffs and Fed in focus
Dollar holds steady after ECB leaves rates alone, tariffs and Fed in focus

CNA

timean hour ago

  • CNA

Dollar holds steady after ECB leaves rates alone, tariffs and Fed in focus

The dollar traded sideways against the euro on Thursday after the European Central Bank held rates steady, and was wedged between prospects for higher Japanese rates that supported the yen and worries about political risk after Sunday's elections. The European Central Bank left interest rates steady at 2 per cent, as expected, on Thursday, taking a break after a year of policy easing to wait for clarity over Europe's future trade relations with the United States. "The view that the ECB is probably on hold here is probably gaining a bit more traction. We've trimmed expectations for the cuts in September to certainly less than 50/50," said Shaun Osborne, chief foreign exchange strategist at Scotiabank in Toronto. The Japanese central bank's deputy governor, Shinichi Uchida, said Tuesday's trade deal with Washington had reduced economic uncertainty, comments that fuelled optimism in the market about the potential resumption of interest rate hikes. Analysts believe the yen will face persistent headwinds after Sunday's upper house election, with the opposition considering a no-confidence motion. The European Union is nearing a deal that would impose a broad 15 per cent tariff on EU goods, diplomats said. The rate, which could also extend to cars, would mirror the framework agreement the United States struck with Japan. "The ECB faces a challenge that is quantitatively different from the BoJ's," said Thierry Wizman, global forex and rates strategist at Macquarie Group. "The euro has appreciated by far more than the JPY so far in 2025, meaning that the disinflationary impulse from U.S. import tariffs may be greater in the EU than in Japan, or the ECB may suspect as much," he added. PMI data showed fragility in France following budget-cut proposals there, but also resilience in Germany and other parts of the euro zone. Data showed that German business activity continued to grow marginally in July. "As of now, there has been very little tariff impact on the hard data," said Mohit Kumar, economist at Jefferies. ECONOMIC FALLOUT Meanwhile, risk assets rallied as the trade deals eased fears over the economic fallout of a global trade war. Next week the Federal Open Market Committee meets and is expected to leave rates where they are as policy makers wait for the expected impact from tariffs on inflation and growth to show up. A number of U.S. employment releases next week culminate with Friday's big June payrolls report, while the July Personal Consumption Expenditures Price Index and the first revision to 2nd quarter Gross Domestic Product could also move markets. "A lot of event risk next week and not just from the Fed, we've got a lot of data next week as well, so that's probably going to shape expectations to some extent for September," Osborne said. The euro was 0.17 per cent firmer at $1.1786, not far from $1.1830 it hit earlier this month, which marked its strongest level in more than three years. Against the yen, the dollar was 0.07 per cent weaker at 146.39, and hit a fresh 2-week low earlier in the session at 145.86. Olivier Korber, forex strategist at Societe Generale, expects the yen to strengthen further, citing support from the trade deal and prospects for higher interest rates. Ishiba denied on Wednesday he had decided to quit after a source and media reports said he planned to announce his resignation to take responsibility for a bruising upper house election defeat. Currencies mostly shrugged off news that U.S. President Donald Trump, a vocal critic of Federal Reserve Chair Jerome Powell, will visit the central bank on Thursday, a surprise move that escalates tensions between the administration and the Fed. The dollar index, which measures the greenback against a basket of six currencies including the euro and yen, was off 0.03 per cent at 97.17.

Trump says he wants Musk and his companies to thrive in US
Trump says he wants Musk and his companies to thrive in US

Straits Times

timean hour ago

  • Straits Times

Trump says he wants Musk and his companies to thrive in US

Find out what's new on ST website and app. Mr Musk (left) spent more than a quarter of a billion dollars to help Mr Trump win November's presidential election. WASHINGTON - US President Donald Trump said on July 24 he would not destroy Mr Elon Musk's companies by taking away federal subsidies and said he wants the billionaire entrepreneur's businesses to thrive. 'Everyone is stating that I will destroy Elon's companies by taking away some, if not all, of the large scale subsidies he receives from the US Government. This is not so!,' Mr Trump said in a social media post. 'I want Elon, and all businesses within our Country, to THRIVE.' The statement follows Mr Musk's warning to Tesla investors on July 23 that US government cuts in support for electric vehicle makers could lead to a 'few rough quarters' for the company. Mr Musk spent more than a quarter of a billion dollars to help Mr Trump win November's presidential election and led the Department of Government Efficiency's chaotic effort to slash the budget and cut the federal workforce. The Tesla CEO left the administration in late May to refocus on his tech empire. Mr Trump and Mr Musk fell out shortly afterwards when Mr Musk openly denounced the Republican president's tax-cut and spending Bill, leading to threats by Mr Trump to cancel billions of dollars worth of federal government contracts with Mr Musk's companies. REUTERS Top stories Swipe. Select. Stay informed. Asia 11 Thai civilians killed as Thai and Cambodian militaries clash at disputed border: Reports Asia Deadly Thai-Cambodian dispute puts Asean's relevance on the line Asia Live: People evacuated from border regions amid deadly Thailand-Cambodia clash Singapore Technology can help efforts to shift healthcare delivery towards the community: Ong Ye Kung Singapore Mice industry will need more manpower in sectors like technology, sustainability: Alvin Tan Singapore Khatib Camp to make way for housing, with its functions moving to Amoy Quee Camp Singapore Mindef to set up new volunteer management unit to grow volunteer pool Singapore Primary 1 registration: 29 schools to conduct ballot in Phase 2B

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store