Trump Tariffs Hit Globalization Winners in EU's East, EBRD Says
The region, now mostly in the European Union and the NATO military alliance, has benefited greatly by embracing free trade following the collapse of communism, especially in terms of technology transfers that reshaped its economies.
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Yahoo
14 minutes ago
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China's SMIC says Trump tariffs did not cause expected 'hard landing'
By Che Pan and Joe Cash BEIJING (Reuters) -China's top foundry SMIC's co-CEO said on Friday that U.S. tariff policy had not resulted in the "hard landing" that the company was initially worried about and that strong domestic demand will keep its production capacity tight until October. Zhao Haijun, co-CEO of Semiconductor Manufacturing International Corp (SMIC), told a post-earnings call that the company is not consulting with customers regarding U.S. President Donald Trump's 100% tariff plan on chip imports but expects the impact could be smaller due to contingency plans that had been made after tariffs were announced in April. China raised additional duties on U.S. goods to 125% in April after Trump effectively raised tariffs on Chinese goods to 145%. Trump said on Wednesday the United States will impose a tariff of about 100% on imports of semiconductors, although that will not apply to companies that are manufacturing in the U.S. or have committed to do so. SMIC was blacklisted by the U.S. commerce department in 2020. China is the dominant market for SMIC, accounting for 84% of its revenue in the second quarter, unchanged from the first quarter, while the U.S. contributed 12.9%, slightly up from 12.6%. SMIC's second-quarter revenue rose 16.2% year-on-year to $2.2 billion. Its profit attributable to owners of SMIC declined 19.5% to $132.5 million, missing analysts' estimates of $183.35 million, according to LSEG data. SMIC's Hong Kong-traded shares were down more than 5% on Friday. Zhao said the previous rounds of tariffs resulted in less than 10% of cost increases at its overseas customers. "After these past few months, everyone has either stocked up enough inventory for this year and next year, or found other suppliers," Zhao said, "So I think the impact will become even smaller." Zhao said SMIC's production capacity remains insufficient and would remain tight until October due to robust demand from domestic substitution.
CNBC
16 minutes ago
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Japan says US promises to fix double tariff oversight
The U.S. government on Thursday promised to amend a presidential executive order to remove overlapping tariffs on Japanese goods, Tokyo's trade negotiator said, after talks in Washington to fix what he called a "regrettable" oversight. In those discussions, Ryosei Akazawa urged U.S. Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent to ensure that a 15% levy agreed last month on Japanese imports was not stacked on goods, such as beef, that are subject to higher tariffs. They explained they would amend a July 31 presidential order, which included a no-stacking provision for the European Union but not Japan, and also refund excess duties collected, Akazawa said. Lutnick and Bessent also said Trump would lower auto tariffs to 15% from 27.5% in a separate executive order, in line with the trade agreement reached by the two countries last month. "Frankly, I did not expect to be visiting the U.S. again so soon after my last trip," said Akazawa, who has travelled to Washington nine times since April. The U.S. Treasury and Commerce Department did not immediately respond to requests for comment on the meetings with Akazawa. The further clarity on U.S. tariffs as well as strong corporate earnings pushed Japan's broad Topix index to a record over the key psychological mark of 3,000 points. Much of what Akazawa negotiated in July during his previous visit to Washington, including directly with Trump, was never put into a signed document. That created confusion in Tokyo and fears that some Japanese companies could face higher tariffs than anticipated. Prime Minister Shigeru Ishiba has been criticised by his opponents for not crafting a joint statement with Trump on the trade deal. Ishiba, who is under pressure from some in his party to step down after last month's upper house election loss, said he chose not to do so to speed the agreement's implementation. To clinch the trade deal, the Japanese premier agreed to raise investment in the U.S. by as much as $550 billion through government-backed loans and guarantees for projects that benefited both countries. Trump later compared that to a baseball player's signing bonus that Washington could invest as it liked. Akazawa declined to say whether he discussed the investment pledge with Lutnick and Bessent. Japan "will continue to maintain close communication with the U.S. side at various levels," the government said in a statement.
Yahoo
44 minutes ago
- Yahoo
China's SMIC says Trump tariffs did not cause expected 'hard landing'
By Che Pan and Joe Cash BEIJING (Reuters) -China's top foundry SMIC's co-CEO said on Friday that U.S. tariff policy had not resulted in the "hard landing" that the company was initially worried about and that strong domestic demand will keep its production capacity tight until October. Zhao Haijun, co-CEO of Semiconductor Manufacturing International Corp (SMIC), told a post-earnings call that the company is not consulting with customers regarding U.S. President Donald Trump's 100% tariff plan on chip imports but expects the impact could be smaller due to contingency plans that had been made after tariffs were announced in April. China raised additional duties on U.S. goods to 125% in April after Trump effectively raised tariffs on Chinese goods to 145%. Trump said on Wednesday the United States will impose a tariff of about 100% on imports of semiconductors, although that will not apply to companies that are manufacturing in the U.S. or have committed to do so. SMIC was blacklisted by the U.S. commerce department in 2020. China is the dominant market for SMIC, accounting for 84% of its revenue in the second quarter, unchanged from the first quarter, while the U.S. contributed 12.9%, slightly up from 12.6%. SMIC's second-quarter revenue rose 16.2% year-on-year to $2.2 billion. Its profit attributable to owners of SMIC declined 19.5% to $132.5 million, missing analysts' estimates of $183.35 million, according to LSEG data. SMIC's Hong Kong-traded shares were down more than 5% on Friday. Zhao said the previous rounds of tariffs resulted in less than 10% of cost increases at its overseas customers. "After these past few months, everyone has either stocked up enough inventory for this year and next year, or found other suppliers," Zhao said, "So I think the impact will become even smaller." Zhao said SMIC's production capacity remains insufficient and would remain tight until October due to robust demand from domestic substitution.
