Embraer reaffirms 2025 outlook, says US tariffs have 'limited impact'
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Reuters
12 minutes ago
- Reuters
China's July exports top forecasts amid rush to meet Trump tariff deadline
BEIJING, Aug 7 (Reuters) - China's exports beat forecasts in July, as manufacturers made the most of a fragile tariff truce between Beijing and Washington to ship goods ahead of a looming deadline later this month. Outbound shipments from the world's second-largest economy rose 7.2% year-on-year in July, customs data showed on Thursday, beating a forecast 5.4% increase in a Reuters poll and June's 4.8% growth. Imports grew 4.1%, following a 1.1% rise in June. Economists had predicted a 1.0% fall. China is facing an August 12 deadline to reach a durable tariff agreement with the U.S. administration, after Beijing and Washington reached framework agreements in May and June to reduce non-tariff barriers such as rare earth minerals and technology to avoid further escalating their trade war. Without a deal, global supply chains could face renewed turmoil from U.S. duties snapping back to triple-digit levels that would amount to a bilateral trade embargo. Trump said on Tuesday the U.S. was close to a trade deal with China and that he would meet his Chinese counterpart Xi Jinping before the end of the year if the world's two largest economies could come to an agreement. China's July trade surplus narrowed to $98.24 billion from $114.77 billion in June. Separate data from the U.S. Commerce Department's Bureau of Economic Analysis on Tuesday showed the U.S. trade gap with China shrank to its lowest in more than 21 years in June. Chinese government advisers are stepping up calls to make the household sector's contribution to broader economic growth a top priority at Beijing's upcoming five-year policy plan, as trade tensions and deflation threaten the outlook. And top leaders have vowed to step up regulation of aggressive price-cutting by Chinese companies that is pushing prices ever lower. But economists warn that reversing the current deflationary slump will be far more difficult than during the last round of supply-side reforms a decade ago, as the downturn now poses a broader threat to employment, which Chinese leaders have emphasised is a core component of social stability. Reaching an agreement with the United States — and with the European Union, which has accused China of producing and selling goods too cheaply — would give Chinese officials more room to advance their reform agenda. However, analysts expect little relief from Western trade pressures. Export growth is projected to slow sharply in the second half of the year, hurt by persistently high tariffs, President Trump's renewed crackdown on the rerouting of Chinese shipments and deteriorating relations with the EU.
Reuters
12 minutes ago
- Reuters
Bank of Korea governor says US trade deal removes 'huge burden'
SEOUL, Aug 7 (Reuters) - South Korea's trade deal with the U.S. will "take a huge burden off" monetary policymakers at their upcoming meeting later this month, the country's central bank governor said on Thursday. "I thought we would be in a difficult situation if things went wrong with tariffs before the policy meeting, and while there might be different opinions, I think you did a difficult job at a difficult time," Bank of Korea Governor Rhee Chang-yong said at his first meeting with Finance Minister Koo Yun-cheol, according to a media pool report of his opening remarks. Koo visited the U.S. last week, just a week after he took office, as head of South Korea's negotiation team and clinched a trade deal with U.S. President Donald Trump that set import tariffs on South Korean goods at 15%, on par with Japan and the European Union. Trump had earlier threatened a tariff of 25%. Rhee did not elaborate when asked by local reporters what he meant by saying the agreement had removed a "huge burden". At the meeting at the Bank of Korea, Rhee and Koo agreed to communicate closely on policy coordination as well as to cooperate on long-term structural reforms, Koo's ministry said in a statement. The Bank of Korea kept its benchmark interest rate unchanged at 2.50% last month, but a majority of board members signalled another rate cut in the next three months and warned of "significant" economic uncertainty from the U.S. tariffs. Later in July, the Bank of Korea said a trade deal similar to that of Japan's would be marginally worse than the central bank's base-case growth projection, after data showed Asia's fourth-largest economy grew in the second quarter at the fastest pace in more than a year. The central bank next meets on August 28.
Reuters
42 minutes ago
- Reuters
Gold gains as Trump doubles India tariffs, boosting safe-haven demand
Aug 7 (Reuters) - Gold rose on Thursday, supported by renewed safe-haven demand after U.S. President Donald Trump slapped an additional 25% tariff on Indian imports, escalating trade frictions. Spot gold was up 0.4% at $3,380.76 per ounce as of 0247 GMT. U.S. gold futures gained 0.3% to $3,443.30. "Trump has been dishing up fresh tariff threats which is keeping gold in the frame as a defensive play for investors," Tim Waterer, chief market analyst at KCM Trade said. "Gold is moving towards the doorstep of the psychological $3400, with risk-assets being kept off-balance somewhat by the constant tariff proclamations by the U.S. President." Trump on Wednesday slapped an additional 25% tariff on imports of Indian goods, citing New Delhi's continued buying of Russian oil, deepening a trade rift between the two nations after talks reached a deadlock. The new import tax, effective 21 days after August 7, will raise duties on some Indian exports to as high as 50% - among the highest levied on any U.S. trading partner. Adding to gold's support, the dollar index (.DXY), opens new tab hovered near a more than one-week low after surprisingly weak U.S. jobs data last week triggered bets for U.S. rate cuts in September. A weaker dollar makes gold less expensive for holders of other currencies. Traders are now pricing in a 94% chance of a 25-basis point rate cut next month, according to the CME Group's FedWatch Tool, opens new tab. The Federal Reserve may need to cut rates in the near-term in response to a slowing U.S. economy, even though it remains unclear whether tariffs will continue to push inflation higher, Minneapolis Fed President Neel Kashkari said. Gold, traditionally considered a safe-haven asset during political and economic uncertainties, tends to thrive in a low-interest-rate environment. Elsewhere, spot silver rose 0.3% to $37.98 per ounce, platinum lost 0.7% to $1,324.26 and palladium shed 0.8% to $1,141.56.
