Japan's Carmakers Absorbing Tariffs May Bolster Trump Position
So far, just three of Japan's six major automakers have raised prices in the US, and only Subaru Corp. 's hike has come close to the 25% tariff imposed on imported vehicles.
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Tariff Ticker: The White House Had a ‘Very Busy' Wednesday ‘Working on Trade Deals'
'We are very busy in the White House today working on Trade Deals,' Truthed President Donald Trump on Wednesday afternoon. A flurry of trade announcements, from 25-percent tariffs on India and a complete kibosh of the de minimis trade exemption, effective next month, spilled out of 1600 Pennsylvania Ave. More from Sourcing Journal Trump Announces Dozens of New Reciprocal Tariff Rates Trump Tariffs Face Sharp Scrutiny in Appeals Court Global Air Cargo Growth Stalls as Tariffs Hammer North American Airlines With the Aug. 1 tariff deadline less than two days away, Trump broadcasted on social media that he had 'spoken to the Leaders of many Countries, all of whom want to make the United States 'extremely happy.'' India may yet be among them, despite the president's tariff announcement earlier in the day. The country's status may not be solidified, with Trump saying in a press conference that the administration is still negotiating with Indian trade officials. One sticking point appears to be its membership in the BRICS Alliance, the trade bloc also comprised of Brazil, Russia, China, South Africa, Iran, Saudi Arabia, Egypt, Ethiopia, the United Arab Emirates and Indonesia. The president referred to the collective as 'a group of countries that are anti the United States,' adding that the group aims to weaken the U.S. dollar, as BRICS has floated the idea of creating its own unified currency. Trump also, again, underscored the 'tremendous deficit' in trade with India, but indicated a willingness on the part of the country's government to lower trade barriers with the U.S. in order to remediate the issue. 'They have one of the highest tariffs in the world. Now they're willing to cut it very substantially. But we'll see what happens,' he added, saying that a resolution will be reached by the end of the week. 'August 1 is very big day for this country, because money is going to pour into the United States like we've never seen before,' Trump told reporters at the White House. India was far from the only country attempting to bend Trump's ear, the president wrote on Truth Social, saying he'd soon be meeting with a South Korean delegation eager to knock down the threatened 25-percent duties to a more manageable rate via an undisclosed 'offer' to the U.S. 'I will be interested in hearing what that offer is,' Trump wrote. He also announced the conclusion of a deal with Pakistan, wherein the country will work with the U.S. on developing oil reserves. 'Likewise, other Countries are making offers for a Tariff reduction. All of this will help reduce our Trade Deficit in a very major way,' he added. While speculation abounds regarding the future of many of the country's trade relationships, the question of how the president plans to handle Brazil after threatening the country with sky-high 50-percent tariffs earlier this month has been answered, albeit disappointingly for the South American nation. An executive order signed by Trump and released by the White House Wednesday afternoon said that Brazil will ultimately face 40-percent duties on goods imported into the U.S.—a small consolation barely worthy of the word, considering it faces the highest duty rate of any country or trade bloc announced in recent weeks, significantly higher than the 10 percent promised by the president on 'Liberation Day' four months ago. The president cited Brazil's indictment of its former president and Trump ally Jair Bolsonaro, along with a recent ruling that U.S.-headquartered social media platforms should be held accountable for certain user content, as reasons for the import tax boost. Notably, while Trump has targeted many trade partners for trade imbalances, the U.S. exports more to the country than it purchases from it. Last year, U.S. exports to the country totaled $49.7 billion, while imports from Brazil amounted to $42.3 billion—a surplus of $7.4 billion for the U.S. Most global trade officials are clamoring for deals before Friday, but the trade truce between the U.S. and its foremost economic rival will persist for two more weeks. The president's stance on China appears to be softening, as he told reporters Wednesday that the negotiations are 'moving along well.' Trump did not indicate whether he intends to extend the current bilateral tariff pause, which expires Aug. 12, though many (including his own cabinet members, who met with Chinese officials in Stockholm this week) have speculated that another three-month truce might be brokered. 'I think it's going to work out very well. We're right in step,' he told reporters. 'I think we're going to have a very fair deal with China.' 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
Yahoo
26 minutes ago
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Global Air Cargo Growth Stalls as Tariffs Hammer North American Airlines
Air cargo demand grew by a modest 0.8 percent in June, held back heavily by North American airlines on global routes, which contracted 6.1 percent year over year. In a monthly market analysis, the International Air Transport Association (IATA) attributed the paltry growth to U.S.-enforced tariffs, which have delivered uncertainty across global trade flows. More from Sourcing Journal Resetting Asia's Apparel Map With a New World Sourcing Order Trump Announces Dozens of New Reciprocal Tariff Rates Trump Tariffs Face Sharp Scrutiny in Appeals Court Freight benchmarking platform Xeneta reported similar numbers for June, with a 1 percent year over year jump in volumes. 'The June air cargo data made it very clear that stability and predictability are essential supports for trade,' said Willie Walsh, IATA's director general. 'Emerging clarity on U.S. tariffs allows businesses greater confidence in planning. But we cannot overlook the fact that the 'deals' being struck are resulting in significantly higher tariffs on goods imported into the U.S. than we had just a few months ago.' The Asia Pacific Freight report from international freight forwarder Dimerco Express Group indicated that shippers are unsure on how to plan their shipping schedules as original reciprocal tariffs on countries that haven't struck a new trade deal with the U.S. go back into effect Friday. The report noted that this rings especially true for markets like Singapore and India, with President Donald Trump already slapping a 25 percent duty on the latter ahead of a new agreement. In the months prior, airlines have had to adjust accordingly. Carriers like UPS, which saw China-to-U.S. volumes sink nearly 35 percent across May and June due to briefly elevated tariffs and the end of the de minimis trade provision, have been adjusting to the new trade order by redeploying capacity on other routes. According to IATA, the Asia-to-North America corridor remains the 'most concerning' of all lanes since it has contracted for the second consecutive month. It is the largest and most active cargo route, with total trade flows dropping by 4.7 percent in June. The drop is an improvement from the annual drop recorded in May, when cargo tonne-kilometers (CTK) declined 10.7 percent in the weeks after the duty-free de minimis exemption was closed to Chinese goods. Fashion, consumer goods, technology and electronics that were typically shipped between April and June ahead of the summer retail cycle, were largely front-loaded this year, as shippers accelerated deliveries to avoid the impact of incoming tariffs. The IATA said other goods are currently facing shipment delays, in some cases because production has relocated to countries with more favorable exporting conditions. For North American airlines, June performed worse than May, with a 2.3 percentage point sequential decline from the previous month. 'The economic damage of these cost barriers to trade remains to be seen,' Walsh said. 'In the meantime, governments should redouble efforts to make trade facilitation simpler, faster, cheaper and more secure with digitalization.' International airlines kept the wider total afloat, with a 1.6 percent annual increase in CTKs. Air cargo growth is still robust for airlines out of the Asia Pacific region at 9 percent year over year, showing a slight 0.3 percentage point increase from the prior month. European airlines saw a 0.8 percent annual increase, down 0.4 percentage points compared with May. Global air cargo capacity jumped 1.7 percent year over year to reach 51.4 billion available cargo tonne-kilometers (ACTK) in June. Capacity was reduced by 2.2 percentage points compared to May, in what IATA calls 'a clear sign of capacity adjustments to accommodate air cargo's softer demand.' Capacity from North American airlines decreased by 5.1 percent year-on-year, the largest decrease among all the trade lanes. Cargo yields reported a 2.5 percent year-over-year decrease, IATA said. However, the market has absorbed part of the initial shock, slightly rebounding 0.9 percentage points compared to May. Xeneta calculated that air cargo spot rates dropped 4 percent year over year, marking the second straight month of declines tracked by both the firm and IATA. According to Xeneta, supply of capacity overtook demand for the first time in 19 months. 'It's wrong to think falling air cargo rates on key trade corridors automatically represent a boon for shippers. With weaker consumer confidence, low rates are little comfort when underlying demand is deteriorating,' said Niall van de Wouw, Xeneta's chief air freight officer, in a blog post on July 4. Fuel prices play into the rate declines. The June jet fuel price was 12 percent lower than the year prior, a fourth consecutive year-over-year monthly decline, IATA said. 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
Yahoo
26 minutes ago
- Yahoo
Trump Announces Dozens of New Reciprocal Tariff Rates
Hours before the pause on 'reciprocal' tariffs was due to expire, President Donald Trump released an executive order modifying the duty rates for dozens of U.S. trade partners. Ranging from 10 percent to 41 percent, the new tariffs will go into effect on Aug. 7, the order indicated. Goods that are found to have been transshipped—or rerouted through third countries to evade higher duties—will be subject to an additional 40-percent tariff. These rates will replace those announced by Trump on 'Liberation Day' in early April. More from Sourcing Journal Amazon CEO on Tariffs: 'It's Impossible to Know What Will Happen' Study Shows American Fashion Firms Unilaterally Challenged by Trade Upheaval, Tariffs Resetting Asia's Apparel Map With a New World Sourcing Order According to the White House notice, trading partners that 'have agreed to, or are on the verge of concluding, meaningful trade and security agreements' with the U.S. will be subject to Thursday's modified rates until those agreements are concluded. Meanwhile, countries that weren't listed, and import more American-made products than they export to the U.S., will be subject to 10-percent duties—the same universal baseline tariff that was announced April 2. 'I found that conditions reflected in large and persistent annual U.S. goods trade deficits constitute an unusual and extraordinary threat to the national security and economy of the United States that has its source in whole or substantial part outside the United States,' the president wrote in the executive order. 'I declared a national emergency with respect to that threat, and to deal with that threat, I imposed additional ad valorem duties that I deemed necessary and appropriate.' A Washington, D.C.-based Court of Appeals for the Federal Circuit heard oral arguments for and against that justification earlier in the day. Trump wrote that information and recommendations from senior cabinet officials regarding the country's trade relationships and foreign trading partners' existing tariff barriers informed his decisions on the modified rates. Heightened duties are designed to prioritize America's domestic manufacturing base and supply chains, and its defense industrial base, he wrote. While Trump has often said in recent weeks that there would be no delays to his tariff scheme, they will take effect one week later than he initially planned. Shipments that have been loaded onto vessels to the U.S. before that date, arriving by Oct. 5, will not be subject to the new duties, giving importers a small window to rush orders. Notably, the president made good on his threat to hit Canadian imports to the U.S. market with steeper tariffs, raising the country's rate from 25 percent to 35 percent, beginning Friday (aside from goods covered by the U.S.-Mexico-Canada Agreement (USCMA), which include clothing, footwear and textiles). Mexico was not featured on the list, as Trump announced earlier in the day that he and President Claudia Sheinbaum had agreed to extend the current deal for 90 days while they pursue a long-term agreement. The country is currently subject to 25-percent tariffs on goods not covered by USMCA. The president also walked back his threat to hit Brazil with 40-percent duties earlier this week, bringing the South American nation's rate down to just 10 percent. The hardest hit nations were Switzerland at 39 percent, Myanmar and Laos at 40 percent, and Syria at 41 percent. The full list is as follows: Afghanistan: 15 percent Algeria: 30 percent Angola: 15 percent Bangladesh: 20 percent Bolivia: 15 percent Bosnia and Herzegovina: 30 percent Botswana: 15 percent Brazil: 10 percent Brunei: 25 percent Cambodia: 19 percent Cameroon: 15 percent Chad: 15 percent Costa Rica: 15 percent Côte d`Ivoire: 15 percent Democratic Republic of the Congo: 15 percent Ecuador: 15 percent Equatorial Guinea: 15 percent European Union: Goods with a Column 1 Duty Rate over 15 percent: 0 percent European Union: Goods with Column 1 Duty Rate less than 15 percent: 15 percent minus Column 1 Duty Rate Falkland Islands: 10 percent Fiji: 15 percent Ghana: 15 percent Guyana: 15 percent Iceland: 15 percent India: 25 percent Indonesia: 19 percent Iraq: 35 percent Israel: 15percent Japan: 15percent Jordan: 15percent Kazakhstan: 25percent Laos: 40 percent Lesotho: 15 percent Libya: 30 percent Liechtenstein: 15 percent Madagascar: 15 percent Malawi: 15 percent Malaysia:19 percent Mauritius: 15 percent Moldova: 25 percent Mozambique: 15 percent Myanmar (Burma): 40 percent Namibia: 15 percent Nauru: 15 percent New Zealand: 15 percent Nicaragua: 18 percent Nigeria: 15 percent North Macedonia: 15 percent Norway: 15 percent Pakistan: 19 percent Papua New Guinea: 15 percent Philippines: 19 percent Serbia: 35 percent South Africa: 30 percent South Korea: 15 percent Sri Lanka: 20 percent Switzerland: 39 percent Syria: 41 percent Taiwan: 20 percent Thailand: 19 percent Trinidad and Tobago: 15 percent Tunisia: 25 percent Turkey: 15 percent Uganda: 15 percent United Kingdom: 10 percent Vanuatu: 15 percent Venezuela: 15 percent Vietnam: 20 percent Zambia: 15 percent Zimbabwe: 15 percent 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
