U.S.-EU trade deal to boost revenue in second half, says Henkel CEO
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CNN
27 minutes ago
- CNN
Lower US tariffs on EU autos are on hold for now
The lower US tariffs on cars imported from the EU will have to wait, at least for now. The EU-US trade agreement is poised to cut the US import tax on cars from the EU from 27.5% to 15%. However, details released Thursday reveal that the lower rate won't take effect until the EU takes separate action to reduce its own tariffs on US goods. 'These tariff reductions are expected to be effective from the first day of the same month in which the European Union's legislative proposal is introduced,' said the latest specifics of the trade agreement released by both the EU and US. This is another example of the ever-changing trade rules this year between the United States and its major trading partners which will impose additional costs on American businesses that import goods and likely eventually raise costs for consumers. The Trump administration announced tariffs of at least 25% on imported vehicles and parts earlier this year. Since then, the US has announced trade agreements with many countries that export cars to United States, expect two of the largest: Mexico and Canada. For example, Germany – the EU country with the most auto exports to the United States – shipped 431,000 vehicles to America last year, according to S&P Global Mobility. But that is only about 3% of the US market, placing it a distant fifth behind Mexico, South Korea, Japan and Canada. US automakers have objected strongly to lowering tariffs on most overseas imports while maintaining higher rates on cars and parts from Canada and Mexico. That's because previous trade deals has allowed the auto industry for decades to operate as if North America was a single market, freely moving parts and vehicles across the borders. Automakers point out that cars assembled in Mexico and Canada include a significant amount of parts produced at US plants. Despite fears, auto tariffs have not significantly raised prices for American car buyers so far this year. Data from car buying site Edmunds shows that the average car price in July was up less than 2% from before the tariffs took effect in March, or a year ago. That's because automakers have, so far, been willing to assume the higher cost of building and importing vehicles instead of raising prices. The concern is that higher prices will put vehicles out of the reach for many customers, cutting into demand. Several companies, including General Motors, Ford, Stellantis and Toyota, have announced they are racking up billions in additional costs due to tariffs.
Yahoo
39 minutes ago
- Yahoo
Posthaste: Canada suffering 'major capital drain' as foreign investors go MIA
The latest tally of international securities transactions is out this week, and it's not a pretty picture for Canada. Foreign investors added $709 million in Canadian securities in June, the first investment since January, and while that might seem like good news, National Bank of Canada economist Warren Lovely says Canadians should hold their applause. The 'slight' June investment reversed just a fraction of the divestment that has been accumulating since the beginning of the year. 'Since President Trump moved back into the White House and clouds formed over many an outlook, non-residents have cooled on Canadian exposure,' he wrote in a note on the data. 'Never has the first half of a calendar year produced such tepid foreign interest.' Foreign investors bought $6.9 billion in Canadian bonds in June, down from $9.7 billion in May. Corporate bond purchases led the way, followed by provincial government bonds. There was a $1.3 billion reduction in foreign holdings of federal government bonds. But they dumped equities. Foreign investors reduced their exposure to Canadian shares by $3 billion in June, following a divestment of $11.5 billion in May. Most of this was in the banking sector and trade and transportation industries. Meanwhile, Canadians acquired $9 billion in foreign securities, most of it in U.S. stocks and non-U.S. bonds. This resulted in a $8.3 billion outflow from the Canadian economy in the month and brought the total exit for the second quarter to $43.7 billion, said Statistics Canada. There was a similar outflow in the first quarter. 'With nonresident investors aloof and Canadians adding foreign assets, the country has suffered a major capital drain. The cumulative outflow over the latest five-month period is in fact unprecedented,' said Lovely. The economist said Canada's bond market especially needs scrutiny, considering the heightened borrowing needs of the federal government in the days to come. In 2024, foreign buying soaked up almost 75 per cent of net Government of Canada debt issuance, but that share dropped dramatically in the first half of this year. Domestic investors were left to pick up the slack, acquiring $100 billion of net GoC supply in the first half, said National. Annualized, that's 6 per cent of GDP and doesn't include the funding needs of non-central governments, public sector entities and private corporations. 'If sustained, foreign investor apathy could be problematic if not downright frightful,' said Lovely. If Ottawa wants to avoid a worse scenario, clarity on its budget and a timely trade deal would help, he said. to get Posthaste delivered straight to your Customs, according to a recent report, cites gold — not canola or coal — as its No. 1 import from Canada by value, and today's chart shows how the yellow metal has become a bigger player in the nation's trade. Gold and other precious metals are now more than 6 per cent of Canadian exports, double the share two years ago, said Douglas Porter, chief economist of BMO Capital Markets. That puts precious metals in line with forestry products such as lumber and pulp & paper, which has long topped Canadian trade, and farm and fishing. Central bankers gather for the Jackson Hole Economic Policy Symposium, in Wyoming Federal Agriculture Minister Heath MacDonald and Saskatchewan Premier Scott Moe will hold a press conference this afternoon after meeting about Chinese tariffs of 75.8 per cent on Canadian canola Today's Data: Canada industrial product and raw materials price indices, United States existing home sales Earnings: Walmart Inc., Intuit Inc., Ross Stores Inc., Workday Inc. Why returning to the office is a pay cut for many people Canada's AI by the numbers: how much money is being spent and who is spending it Tariff-exempt exports top 80% as Canadian companies scramble to comply with CUSMA Buying a house is the largest purchase most Canadians will ever make and finally paying off the mortgage is likely to be a game changer. But before the temptation to splurge on a pricey new car or a luxury vacation takes hold, experts say it's important to review your financial plan for this next chapter to ensure you're on track for wherever you want to go. Find out how to make the most of your newfound cashflow. Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@ with your contact info and the gist of your problem and we'll find some experts to help you out while writing a Family Finance story about it (we'll keep your name out of it, of course). McLister on mortgages Want to learn more about mortgages? Mortgage strategist Robert McLister's Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won't want to miss. Plus check his mortgage rate page for Canada's lowest national mortgage rates, updated daily. Financial Post on YouTube Visit the Financial Post's YouTube channel for interviews with Canada's leading experts in business, economics, housing, the energy sector and more. Today's Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff, The Canadian Press and Bloomberg. Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@ Never mind the mortgage cliff, this is the debt Canadians are really struggling with Why Trump might have to cut tariffs — (spoiler, they're not working) 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
San Francisco Chronicle
an hour ago
- San Francisco Chronicle
The US and EU release a bare-bones account of their trade deal, but it's a work in progress
BRUSSELS (AP) — American and European Union officials released a bare-bones account Thursday of their trade deal that imposes a 15% import tax on 70% of European goods exported to the United States, but they left blank key areas such as wine and spirits as well as steel and indicated that talks would continue on those and a slew of other important sectors. The two sides said the document was only 'a first step in a process that can be further expanded to cover additional areas.' They are dealing with the vast range of goods traded between the two economies in what is the largest bilateral trading relationship in the world, involving $2 trillion in annual trans-Atlantic business. The 3 1/2-page text represents a political commitment and is not legally binding. It contrasts with the typical format for trade agreements, which can be hundreds of pages long and carry legal force. The key provisions are the 15% tariff on most EU goods, a zero rate on U.S. cars and other industrial goods exported to the 27-member EU, and a range of exceptions to the 15% rate for aircraft and aircraft parts, generic pharmaceuticals and pharmaceutical ingredients, with other sectors to be added for goods crucial to each other's economies. Those goods would face lower tariffs from before President Donald Trump's tariff onslaught. 'The EU has agreed to open its $20 Trillion market,' Trump's commerce secretary, Howard Lutnick, said on X. 'The second largest in the world behind the great USA.' He said the deal was 'a major win for American workers, US industries, and our national security. Tariffs should be one of America's favorite words.' European officials have had to defend the deal against dismay from businesses and member governments at the higher tariffs and criticism that the EU gave away too much. European Commission President Ursula von der Leyen sold the deal as granting quick relief from the even higher U.S. tariff on EU cars of 27.5% and as opening the way for further negotiations that could exclude more goods from the 15% tariffs. The deal provides that the lower tariff on cars would apply retroactively from Aug. 1 if the EU can introduce legislation to implement its part of the deal by then, which EU officials say they will do. 'Faced with a challenging situation, we have delivered for our member states and industry and restored clarity and coherence to transatlantic trade,' von der Leyen said. 'This is not the end of the process.' The chief EU trade negotiator, Maros Sefcovic, echoed those sentiments. "The alternative was a trade war with sky high tariffs ... it builds confidence. It brings stability,' he said. Economists say higher tariffs slow economic growth and will be reflected in higher consumer prices. One category of goods not excluded from tariffs on EU goods was wine and spirits, which had enjoyed zero tariffs on both ends since a 1997 trade deal. Sefcovic, said EU officials had not won an exemption 'yet' but hoped to in future talks and that 'doors are not closed forever' on that issue. That means American distillers face zero tariffs in Europe the short term, but also the possibility of EU retaliation down the line, said Chris Swonger, president and CEO of the Distilled Spirits Council of the United States. 'Without a permanent return to zero-for-zero tariffs on spirits, American distillers do not have the certainty to plan for future export and job growth without the fear of retaliatory tariffs returning,' Swonger said in a statement. The EU has suspended retaliatory tariffs on US goods including wine and spirits until Feb. 5, 2026. Proposals to exempt a certain amount of EU steel imports, known as a tariff rate quota, have been left unresolved pending more talks. The 15% tariff is much higher than tariff levels on both sides from before Trump began imposing his tariffs, when they averaged in the low single digits. The tariffs are paid on the U.S. end, either absorbed by American businesses importing the goods, lowering their profits, or passed on to U.S. consumers in the form of higher prices at the cash register. The deal also includes nonbinding EU commitments to purchase $750 billion in U.S. energy and for EU companies to invest $600 billion in the U.S. In both cases, the money would come from private companies and is based on assessment by the European Commission on what companies were planning to spend.
