Asian stocks rise on signs of easing trade tensions
Asian stock markets and US futures have risen as signs of possible trade talks between the US and China lifted risk sentiment, after lacklustre earnings from tech bellwethers Apple and Amazon fuelled worries about the impact of tariffs.
China's commerce ministry said on Friday the United States has repeatedly expressed its willingness to negotiate on tariffs and that Beijing's door is open for talks.
The comments helped US stock futures reverse course from earlier falls after Apple trimmed its share buyback program and warned tariffs could add about $US900 million in costs this quarter.
Futures for S&P 500 rose 0.6 per cent while those for Nasdaq were 0.3 per cent higher on Friday. Japan's Nikkei gained one per cent on a weaker yen and Taiwan stocks surged two per cent.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.4 per cent.
"They've struck a cautious tone, demanding that the US 'show sincerity' if they want trade talks," said Matt Simpson, senior market analyst at City Index.
"So while olive branch has been offered, you can hardly say China has 'come crawling' like Trump had hoped."
Still, investor sentiment turned up on the comments as markets continue to grapple with President Donald Trump's erratic tariff policies that have sparked fears of a sharp global economic downturn.
Data this week showed the US economy shrank for the first time in three years in the first quarter, while China's factory activity contracted at the fastest pace in 16 months in April.
Joseph Capurso, head of international and sustainable economics at Commonwealth Bank of Australia, said the main impact on the economy from tariffs will be felt when consumer prices rise.
"A recession will become likely if the price increases encourage consumers to cut spending and businesses to shrink workforces and cut capital spending. While a recession is not our baseline, it will be a close call this year."
The earnings season so far has underscored the cost of the rapidly shifting US trade policy with many companies slashing or pulling their profit forecasts.
Still, while investors were disheartened by the earnings from Apple and Amazon, strong results from Microsoft and Meta Platforms earlier in the week had raised hopes that the tech industry could weather the tariff storm.
In the currency markets, the Japanese yen weakened to its lowest level since April 10 on Friday, a day after Bank of Japan lowered growth forecasts due to US tariffs and left interest rates on hold. It was last at 145.62 per dollar.
Fred Neumann, chief Asia economist at HSBC, said the impact of tariff uncertainty on the global economy could pose indirect challenges to growth in Japan.
"The BOJ (Bank of Japan) is keeping the door open for further rate hikes, but at this point the door is only slightly ajar."
That left the US dollar on course for its strongest weekly performance since the end of February ahead of the crucial non-farm payrolls data later in the day. The dollar index, which measures the US currency against six other units, was last at 100.14.
Non-farm payrolls likely increased by 130,000 jobs in April after rising by 228,000 in March, a Reuters survey of economists showed.
Japanese Finance Minister Katsunobu Kato said on Friday the country's huge $US1 trillion-plus in US Treasury holdings are among the tools available for Tokyo to use in trade negotiations with the United States.
The remark came as Japan's top trade negotiator Ryosei Akazawa met with US Treasury Secretary Scott Bessent in Washington for a second round of bilateral tariff talks.
In commodities, gold prices eased to $US3,234.9 per ounce, on course for its weakest weekly performance in two months due to slowing safe-haven demand.
Oil prices jumped after Trump threatened secondary sanctions on Iran. Brent crude futures rose 0.56 per cent while US West Texas Intermediate crude futures gained 0.6 per cent.
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ABC News
12 hours ago
- ABC News
Trump cuts off US trade talks with Canada, shattering optimism over tariff deals
US President Donald Trump has abruptly cut off trade talks with Canada over its tax targeting US technology firms, calling it a "blatant attack". The move on Friday, local time, plunged US-Canada relations back into chaos after a period of relative calm that included a cordial G7 meeting in mid-June where Mr Trump and Canadian Prime Minister Mark Carney agreed to wrap up a new economic agreement within 30 days. It also came just hours after US Treasury Secretary Scott Bessent struck an upbeat tone on trade, touting that progress had been made with China on reviving the flow of critical minerals for the US manufacturing sector, and in other key tariff negotiations. The often-chaotic rollout of Mr Trump's import levies since his return to office this year has frequently whipsawed financial markets, and have begun to weigh on consumer spending, the bedrock of the US economy. US stocks were briefly batted lower by his broadside against Canada, but the S&P 500 and Nasdaq managed to close out the week at record highs. Mr Trump's action comes ahead of Canada's plans to begin collecting on Monday a previously enacted digital services tax on US technology firms, including Amazon, Meta, Alphabet's Google and Apple, among others. The tax is 3 per cent of the digital services revenue a firm takes in from Canadian users above $US20 million ($30 million) in a calendar year, and payments will be retroactive to 2022. Mr Trump, in a post on his Truth Social media platform, called the tax "a direct and blatant attack on our country" and said Canada was a "very difficult country to TRADE with". "We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven-day period." Speaking to reporters at the White House, Mr Trump said that the negotiations with Canada would not resume "until they straighten out their act," adding that the US holds "such power over Canada". Canada is the second-largest US trading partner after Mexico, and the largest buyer of US exports. It bought $US349.4 billion of US goods last year and exported $US412.7 billion to the US, according to US Census Bureau data. Mr Carney's office responded to Mr Trump's announcement by saying: "The Canadian government will continue to engage in these complex negotiations with the United States in the best interests of Canadian workers and businesses." Mr Bessent sought to downplay the US-Canadian dispute in a CNBC interview, saying US Trade Representative (USTR) Jamieson Greer would likely open a Section 301 probe into Canada's digital tax that would clear the way for tariff retaliation in the amount of harm to US firms, which he said was roughly $US2 billion. The US has prepared similar retaliation against European countries that have imposed digital taxes. A USTR spokesperson did not immediately respond to a request for comment. Earlier on Friday, Mr Bessent said the Trump administration's various trade deals with other countries could be done by the September 1 Labor Day holiday, citing talks with 18 top trade partners and another revision to a deal with China to reopen the flow of rare earth minerals and magnets. After a week where tariffs took a back seat to the US strike on Iran's nuclear facilities and the massive tax and spending bill in the US Congress, the Trump administration's trade negotiations have picked up. The US sent a new proposal to the European Union on Thursday and India sent a delegation to Washington for more talks. "So we have countries approaching us with very good deals," Mr Bessent said on Fox Business Network. "We have 18 important trading partners. … If we can ink 10 or 12 of the important 18, there are another important 20 relationships, then I think we could have trade wrapped up by Labor Day," Mr Bessent said. He did not mention any changes to a July 9 deadline for countries to reach deals with the US or see tariffs spike higher, but Mr Trump said at the White House that he could extend the tariff deadline or "make it shorter". Mr Trump said that he would notify countries of their tariff rates within the next week and a half, adding: "I'd like to just send letters out to everybody: Congratulations. You're paying 25 per cent." Mr Bessent said the US and China had resolved issues surrounding shipments of Chinese rare earth minerals and magnets to America, further modifying a deal reached in May in Geneva. As part of its retaliation against new US tariffs, China suspended exports of a wide range of critical minerals and magnets, up-ending supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world. During US-China talks in May in Geneva, Beijing committed to removing the measures imposed since April 2, but those critical materials were not moving as fast as agreed, Mr Bessent said, so the US put countermeasures in place. "I am confident now that … as agreed, the magnets will flow," Mr Bessent said, adding that these materials would go to US firms that had received them previously on a regular basis. He later said that the US would begin shipping withheld materials to China when the rare earths shipments resumed. China's Commerce Ministry said on Friday the two countries have confirmed details on the framework of implementing the Geneva trade talks consensus. It said China will approve export applications of controlled items in accordance with the law. It did not mention rare earths. Trump administration officials also held trade talks on Friday with India and Japan, two other countries in advanced negotiations with the US The Japanese government said in a statement that the two sides will continue to work to "reach an agreement that benefits both Japan and the United States". Reuters
The Advertiser
13 hours ago
- The Advertiser
Jeff Bezos weds Lauren Sanchez in grand Venice ceremony
Amazon founder Jeff Bezos and journalist Lauren Sanchez have married in a lavish Venice wedding, after multiple days of star-studded nuptial events. Sánchez, 55, posted to Instagram a photo of herself beaming in a white gown as she stood alongside a tuxedo-clad Bezos, the world's fourth-richest man. The bride wore a classic mermaid-line gown, featuring Dolce & Gabbana's signature Italian lace. A traditional tulle-and-lace veil completed her look. "Not just a gown, a piece of poetry," she wrote on Instagram, where her name now appears as Lauren Sánchez Bezos. Friday night's ceremony had no legal status under Italian law, a senior city hall official told Reuters, suggesting the couple may have already legally wed in the United States, avoiding the bureaucracy associated with an Italian marriage. The festivities, estimated to cost about $US50 million ($A77 million), culminate on Saturday with a party in a former medieval shipyard where media outlets say Lady Gaga and Elton John are set to perform. Bill Gates, Leonardo DiCaprio, Orlando Bloom, Tom Brady, the queen of Jordan, Oprah Winfrey, Kris Jenner and Kim and Khloe Kardashian as well as Ivanka Trump and Jared Kushner and Domenico Dolce from Dolce & Gabbana are among the 200-250 guests. Amid tight security, there have been glimpses of the celebrities moving around town, the women in summer dresses and high heels stepping somewhat gingerly off boats ferrying them around the city's canals. Celebrations began on Thursday evening in the cloisters of Madonna dell'Orto, a medieval church in the central district of Cannaregio that hosts masterpieces by 16th-century painter Tintoretto. "This magical place has gifted us unforgettable memories," the bride and groom said on their wedding invitation, in which they asked for "no gifts" and pledged charity donations for three Venetian institutions. Their donations are worth three million euros ($A5.4 million). Businesses have welcomed the glitz and glamour but it is opposed by a local protest movement whose members resent what they see as Venice being gift-wrapped for ultra-rich outsiders. Bezos, 61, is No.4 on Forbes' global billionaires list. Giulia Cacopardo, a 28-year-old representative of the "No Space for Bezos" movement, complained that the needs of ordinary people were being neglected in a city that is a tourist magnet and fast depopulating largely due to the soaring cost of living. Venice's city centre has less than 50,000 residents, compared to almost 100,000 in the late 1970s. "When you empty a city of its inhabitants, you can turn it into a stage for big events," Cacopardo told Reuters. "(But) the money that Bezos spends on this wedding does not end up in the pockets of Venetians. The owners of luxury hotels are not Venetians." Cacopardo was one of 30-40 activists who staged a protest in St Mark's Square on Thursday, chanting, "We are the 99 per cent" as a masked couple posed as bride and groom and one man climbed a pole to unfurl a banner reading "The one per cent ruins the world". Police intervened, forcibly removing the protesters. The anti-Bezos front is planning a march on Saturday, and their activities have already led authorities to step up security and move the location of the closing party to a more secluded part of Venice, the Arsenale former shipyard. Charlotte Perkins, an Australian tourist, said she could understand the locals' resentment at their city being treated as a celebrity playground. "I'd probably feel the same if I lived here," she said. But politicians, hoteliers and some other Venice residents are happy about the wedding, saying such events do more to support the local economy than the multitudes of day-trippers who normally overrun the city. "We are happy and honoured to welcome Jeff Bezos and his consort Lauren Sanchez," mayor Luigi Brugnaro said. Bezos, Amazon's executive chair, got engaged to Sanchez in 2023, four years after the collapse of his 25-year marriage to MacKenzie Scott. with AP Amazon founder Jeff Bezos and journalist Lauren Sanchez have married in a lavish Venice wedding, after multiple days of star-studded nuptial events. Sánchez, 55, posted to Instagram a photo of herself beaming in a white gown as she stood alongside a tuxedo-clad Bezos, the world's fourth-richest man. The bride wore a classic mermaid-line gown, featuring Dolce & Gabbana's signature Italian lace. A traditional tulle-and-lace veil completed her look. "Not just a gown, a piece of poetry," she wrote on Instagram, where her name now appears as Lauren Sánchez Bezos. Friday night's ceremony had no legal status under Italian law, a senior city hall official told Reuters, suggesting the couple may have already legally wed in the United States, avoiding the bureaucracy associated with an Italian marriage. The festivities, estimated to cost about $US50 million ($A77 million), culminate on Saturday with a party in a former medieval shipyard where media outlets say Lady Gaga and Elton John are set to perform. Bill Gates, Leonardo DiCaprio, Orlando Bloom, Tom Brady, the queen of Jordan, Oprah Winfrey, Kris Jenner and Kim and Khloe Kardashian as well as Ivanka Trump and Jared Kushner and Domenico Dolce from Dolce & Gabbana are among the 200-250 guests. Amid tight security, there have been glimpses of the celebrities moving around town, the women in summer dresses and high heels stepping somewhat gingerly off boats ferrying them around the city's canals. Celebrations began on Thursday evening in the cloisters of Madonna dell'Orto, a medieval church in the central district of Cannaregio that hosts masterpieces by 16th-century painter Tintoretto. "This magical place has gifted us unforgettable memories," the bride and groom said on their wedding invitation, in which they asked for "no gifts" and pledged charity donations for three Venetian institutions. Their donations are worth three million euros ($A5.4 million). Businesses have welcomed the glitz and glamour but it is opposed by a local protest movement whose members resent what they see as Venice being gift-wrapped for ultra-rich outsiders. Bezos, 61, is No.4 on Forbes' global billionaires list. Giulia Cacopardo, a 28-year-old representative of the "No Space for Bezos" movement, complained that the needs of ordinary people were being neglected in a city that is a tourist magnet and fast depopulating largely due to the soaring cost of living. Venice's city centre has less than 50,000 residents, compared to almost 100,000 in the late 1970s. "When you empty a city of its inhabitants, you can turn it into a stage for big events," Cacopardo told Reuters. "(But) the money that Bezos spends on this wedding does not end up in the pockets of Venetians. The owners of luxury hotels are not Venetians." Cacopardo was one of 30-40 activists who staged a protest in St Mark's Square on Thursday, chanting, "We are the 99 per cent" as a masked couple posed as bride and groom and one man climbed a pole to unfurl a banner reading "The one per cent ruins the world". Police intervened, forcibly removing the protesters. The anti-Bezos front is planning a march on Saturday, and their activities have already led authorities to step up security and move the location of the closing party to a more secluded part of Venice, the Arsenale former shipyard. Charlotte Perkins, an Australian tourist, said she could understand the locals' resentment at their city being treated as a celebrity playground. "I'd probably feel the same if I lived here," she said. But politicians, hoteliers and some other Venice residents are happy about the wedding, saying such events do more to support the local economy than the multitudes of day-trippers who normally overrun the city. "We are happy and honoured to welcome Jeff Bezos and his consort Lauren Sanchez," mayor Luigi Brugnaro said. Bezos, Amazon's executive chair, got engaged to Sanchez in 2023, four years after the collapse of his 25-year marriage to MacKenzie Scott. with AP Amazon founder Jeff Bezos and journalist Lauren Sanchez have married in a lavish Venice wedding, after multiple days of star-studded nuptial events. Sánchez, 55, posted to Instagram a photo of herself beaming in a white gown as she stood alongside a tuxedo-clad Bezos, the world's fourth-richest man. The bride wore a classic mermaid-line gown, featuring Dolce & Gabbana's signature Italian lace. A traditional tulle-and-lace veil completed her look. "Not just a gown, a piece of poetry," she wrote on Instagram, where her name now appears as Lauren Sánchez Bezos. Friday night's ceremony had no legal status under Italian law, a senior city hall official told Reuters, suggesting the couple may have already legally wed in the United States, avoiding the bureaucracy associated with an Italian marriage. The festivities, estimated to cost about $US50 million ($A77 million), culminate on Saturday with a party in a former medieval shipyard where media outlets say Lady Gaga and Elton John are set to perform. Bill Gates, Leonardo DiCaprio, Orlando Bloom, Tom Brady, the queen of Jordan, Oprah Winfrey, Kris Jenner and Kim and Khloe Kardashian as well as Ivanka Trump and Jared Kushner and Domenico Dolce from Dolce & Gabbana are among the 200-250 guests. Amid tight security, there have been glimpses of the celebrities moving around town, the women in summer dresses and high heels stepping somewhat gingerly off boats ferrying them around the city's canals. Celebrations began on Thursday evening in the cloisters of Madonna dell'Orto, a medieval church in the central district of Cannaregio that hosts masterpieces by 16th-century painter Tintoretto. "This magical place has gifted us unforgettable memories," the bride and groom said on their wedding invitation, in which they asked for "no gifts" and pledged charity donations for three Venetian institutions. Their donations are worth three million euros ($A5.4 million). Businesses have welcomed the glitz and glamour but it is opposed by a local protest movement whose members resent what they see as Venice being gift-wrapped for ultra-rich outsiders. Bezos, 61, is No.4 on Forbes' global billionaires list. Giulia Cacopardo, a 28-year-old representative of the "No Space for Bezos" movement, complained that the needs of ordinary people were being neglected in a city that is a tourist magnet and fast depopulating largely due to the soaring cost of living. Venice's city centre has less than 50,000 residents, compared to almost 100,000 in the late 1970s. "When you empty a city of its inhabitants, you can turn it into a stage for big events," Cacopardo told Reuters. "(But) the money that Bezos spends on this wedding does not end up in the pockets of Venetians. The owners of luxury hotels are not Venetians." Cacopardo was one of 30-40 activists who staged a protest in St Mark's Square on Thursday, chanting, "We are the 99 per cent" as a masked couple posed as bride and groom and one man climbed a pole to unfurl a banner reading "The one per cent ruins the world". Police intervened, forcibly removing the protesters. The anti-Bezos front is planning a march on Saturday, and their activities have already led authorities to step up security and move the location of the closing party to a more secluded part of Venice, the Arsenale former shipyard. Charlotte Perkins, an Australian tourist, said she could understand the locals' resentment at their city being treated as a celebrity playground. "I'd probably feel the same if I lived here," she said. But politicians, hoteliers and some other Venice residents are happy about the wedding, saying such events do more to support the local economy than the multitudes of day-trippers who normally overrun the city. "We are happy and honoured to welcome Jeff Bezos and his consort Lauren Sanchez," mayor Luigi Brugnaro said. Bezos, Amazon's executive chair, got engaged to Sanchez in 2023, four years after the collapse of his 25-year marriage to MacKenzie Scott. with AP Amazon founder Jeff Bezos and journalist Lauren Sanchez have married in a lavish Venice wedding, after multiple days of star-studded nuptial events. Sánchez, 55, posted to Instagram a photo of herself beaming in a white gown as she stood alongside a tuxedo-clad Bezos, the world's fourth-richest man. The bride wore a classic mermaid-line gown, featuring Dolce & Gabbana's signature Italian lace. A traditional tulle-and-lace veil completed her look. "Not just a gown, a piece of poetry," she wrote on Instagram, where her name now appears as Lauren Sánchez Bezos. Friday night's ceremony had no legal status under Italian law, a senior city hall official told Reuters, suggesting the couple may have already legally wed in the United States, avoiding the bureaucracy associated with an Italian marriage. The festivities, estimated to cost about $US50 million ($A77 million), culminate on Saturday with a party in a former medieval shipyard where media outlets say Lady Gaga and Elton John are set to perform. Bill Gates, Leonardo DiCaprio, Orlando Bloom, Tom Brady, the queen of Jordan, Oprah Winfrey, Kris Jenner and Kim and Khloe Kardashian as well as Ivanka Trump and Jared Kushner and Domenico Dolce from Dolce & Gabbana are among the 200-250 guests. Amid tight security, there have been glimpses of the celebrities moving around town, the women in summer dresses and high heels stepping somewhat gingerly off boats ferrying them around the city's canals. Celebrations began on Thursday evening in the cloisters of Madonna dell'Orto, a medieval church in the central district of Cannaregio that hosts masterpieces by 16th-century painter Tintoretto. "This magical place has gifted us unforgettable memories," the bride and groom said on their wedding invitation, in which they asked for "no gifts" and pledged charity donations for three Venetian institutions. Their donations are worth three million euros ($A5.4 million). Businesses have welcomed the glitz and glamour but it is opposed by a local protest movement whose members resent what they see as Venice being gift-wrapped for ultra-rich outsiders. Bezos, 61, is No.4 on Forbes' global billionaires list. Giulia Cacopardo, a 28-year-old representative of the "No Space for Bezos" movement, complained that the needs of ordinary people were being neglected in a city that is a tourist magnet and fast depopulating largely due to the soaring cost of living. Venice's city centre has less than 50,000 residents, compared to almost 100,000 in the late 1970s. "When you empty a city of its inhabitants, you can turn it into a stage for big events," Cacopardo told Reuters. "(But) the money that Bezos spends on this wedding does not end up in the pockets of Venetians. The owners of luxury hotels are not Venetians." Cacopardo was one of 30-40 activists who staged a protest in St Mark's Square on Thursday, chanting, "We are the 99 per cent" as a masked couple posed as bride and groom and one man climbed a pole to unfurl a banner reading "The one per cent ruins the world". Police intervened, forcibly removing the protesters. The anti-Bezos front is planning a march on Saturday, and their activities have already led authorities to step up security and move the location of the closing party to a more secluded part of Venice, the Arsenale former shipyard. Charlotte Perkins, an Australian tourist, said she could understand the locals' resentment at their city being treated as a celebrity playground. "I'd probably feel the same if I lived here," she said. But politicians, hoteliers and some other Venice residents are happy about the wedding, saying such events do more to support the local economy than the multitudes of day-trippers who normally overrun the city. "We are happy and honoured to welcome Jeff Bezos and his consort Lauren Sanchez," mayor Luigi Brugnaro said. Bezos, Amazon's executive chair, got engaged to Sanchez in 2023, four years after the collapse of his 25-year marriage to MacKenzie Scott. with AP
The Advertiser
13 hours ago
- The Advertiser
Trump cuts off trade talks with Canada over digital tax
US President Donald Trump has abruptly cut off trade talks with Canada over its tax targeting US technology firms, calling it a "blatant attack" and saying that he would set a new tariff rate on Canadian goods within the next week. The move plunges US relations with its second-largest trading partner back into chaos after a period of relative calm. It also came just hours after Treasury Secretary Scott Bessent struck an upbeat tone on trade, touting progress had been made with China on reviving the flow of critical minerals for the US manufacturing sector and in other key tariff negotiations. The often-chaotic rollout of Trump's import levies since his return to office this year have frequently whipsawed financial markets, and have begun to weigh on consumer spending, the bedrock of the US economy. US stocks were briefly batted lower by his broadside against Canada but managed to close out the week at record highs for the S&P 500 and Nasdaq. Trump's action comes ahead of Canada's plans to begin collecting on Monday a longstanding digital services tax on US technology firms including Amazon, Meta, Alphabet's Google and Apple among others. The tax is 3.0 per cent of the digital services revenue a firm takes in from Canadian users above $US20 million ($A31 million) in a calendar year, and payments will be retroactive to 2022. Trump, in a post on his Truth Social media platform, called the tax "a direct and blatant attack on our country" and said Canada was a "very difficult country to TRADE with". "Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump said. "We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period." Canada is the second-largest US trading partner after Mexico, buying $US349.4 billion of US goods last year and exporting $US412.7 billion to the US, according to US Census Bureau data. Canadian Prime Minister Mark Carney had said on June 16 he and Trump agreed to try to wrap up a new economic and security deal within 30 days. "The Canadian government will continue to engage in these complex negotiations with the United States in the best interests of Canadian workers and businesses," Carney's office said in a statement. Earlier on Friday, Bessent said the Trump administration's various trade deals with other countries could be done by the September 1 Labor Day holiday, citing talks with 18 top trade partners and another revision to a deal with China to reopen the flow of rare earth minerals and magnets. The United States sent a new proposal to the European Union on Thursday and India sent a delegation to Washington DC for more talks. "So we have countries approaching us with very good deals," Bessent said on Fox Business Network. "We have 18 important trading partners. ... If we can ink 10 or 12 of the important 18, there are another important 20 relationships, then I think we could have trade wrapped up by Labor Day," Bessent said. He did not mention any changes to a July 9 deadline for countries to reach deals with the United States or see tariffs spike higher but has previously said that countries negotiating in good faith could get deals. But Trump told reporters at the White House that he could extend the tariff deadline or "make it shorter," adding that within the next week and a half, he would notify countries of their tariff rates. "I'd like to just send letters out to everybody: Congratulations. You're paying 25 per cent" tariffs, Trump said in an apparent joke. Bessent said the United States and China had resolved issues surrounding shipments of Chinese rare earth minerals and magnets to the US, further modifying a deal reached in May in Geneva. China's commerce ministry said on Friday the two countries have confirmed details on the framework of implementing the Geneva trade talks consensus. It said China will approve export applications of controlled items in accordance with the law. It did not mention rare earths. US President Donald Trump has abruptly cut off trade talks with Canada over its tax targeting US technology firms, calling it a "blatant attack" and saying that he would set a new tariff rate on Canadian goods within the next week. The move plunges US relations with its second-largest trading partner back into chaos after a period of relative calm. It also came just hours after Treasury Secretary Scott Bessent struck an upbeat tone on trade, touting progress had been made with China on reviving the flow of critical minerals for the US manufacturing sector and in other key tariff negotiations. The often-chaotic rollout of Trump's import levies since his return to office this year have frequently whipsawed financial markets, and have begun to weigh on consumer spending, the bedrock of the US economy. US stocks were briefly batted lower by his broadside against Canada but managed to close out the week at record highs for the S&P 500 and Nasdaq. Trump's action comes ahead of Canada's plans to begin collecting on Monday a longstanding digital services tax on US technology firms including Amazon, Meta, Alphabet's Google and Apple among others. The tax is 3.0 per cent of the digital services revenue a firm takes in from Canadian users above $US20 million ($A31 million) in a calendar year, and payments will be retroactive to 2022. Trump, in a post on his Truth Social media platform, called the tax "a direct and blatant attack on our country" and said Canada was a "very difficult country to TRADE with". "Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump said. "We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period." Canada is the second-largest US trading partner after Mexico, buying $US349.4 billion of US goods last year and exporting $US412.7 billion to the US, according to US Census Bureau data. Canadian Prime Minister Mark Carney had said on June 16 he and Trump agreed to try to wrap up a new economic and security deal within 30 days. "The Canadian government will continue to engage in these complex negotiations with the United States in the best interests of Canadian workers and businesses," Carney's office said in a statement. Earlier on Friday, Bessent said the Trump administration's various trade deals with other countries could be done by the September 1 Labor Day holiday, citing talks with 18 top trade partners and another revision to a deal with China to reopen the flow of rare earth minerals and magnets. The United States sent a new proposal to the European Union on Thursday and India sent a delegation to Washington DC for more talks. "So we have countries approaching us with very good deals," Bessent said on Fox Business Network. "We have 18 important trading partners. ... If we can ink 10 or 12 of the important 18, there are another important 20 relationships, then I think we could have trade wrapped up by Labor Day," Bessent said. He did not mention any changes to a July 9 deadline for countries to reach deals with the United States or see tariffs spike higher but has previously said that countries negotiating in good faith could get deals. But Trump told reporters at the White House that he could extend the tariff deadline or "make it shorter," adding that within the next week and a half, he would notify countries of their tariff rates. "I'd like to just send letters out to everybody: Congratulations. You're paying 25 per cent" tariffs, Trump said in an apparent joke. Bessent said the United States and China had resolved issues surrounding shipments of Chinese rare earth minerals and magnets to the US, further modifying a deal reached in May in Geneva. China's commerce ministry said on Friday the two countries have confirmed details on the framework of implementing the Geneva trade talks consensus. It said China will approve export applications of controlled items in accordance with the law. It did not mention rare earths. US President Donald Trump has abruptly cut off trade talks with Canada over its tax targeting US technology firms, calling it a "blatant attack" and saying that he would set a new tariff rate on Canadian goods within the next week. The move plunges US relations with its second-largest trading partner back into chaos after a period of relative calm. It also came just hours after Treasury Secretary Scott Bessent struck an upbeat tone on trade, touting progress had been made with China on reviving the flow of critical minerals for the US manufacturing sector and in other key tariff negotiations. The often-chaotic rollout of Trump's import levies since his return to office this year have frequently whipsawed financial markets, and have begun to weigh on consumer spending, the bedrock of the US economy. US stocks were briefly batted lower by his broadside against Canada but managed to close out the week at record highs for the S&P 500 and Nasdaq. Trump's action comes ahead of Canada's plans to begin collecting on Monday a longstanding digital services tax on US technology firms including Amazon, Meta, Alphabet's Google and Apple among others. The tax is 3.0 per cent of the digital services revenue a firm takes in from Canadian users above $US20 million ($A31 million) in a calendar year, and payments will be retroactive to 2022. Trump, in a post on his Truth Social media platform, called the tax "a direct and blatant attack on our country" and said Canada was a "very difficult country to TRADE with". "Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump said. "We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period." Canada is the second-largest US trading partner after Mexico, buying $US349.4 billion of US goods last year and exporting $US412.7 billion to the US, according to US Census Bureau data. Canadian Prime Minister Mark Carney had said on June 16 he and Trump agreed to try to wrap up a new economic and security deal within 30 days. "The Canadian government will continue to engage in these complex negotiations with the United States in the best interests of Canadian workers and businesses," Carney's office said in a statement. Earlier on Friday, Bessent said the Trump administration's various trade deals with other countries could be done by the September 1 Labor Day holiday, citing talks with 18 top trade partners and another revision to a deal with China to reopen the flow of rare earth minerals and magnets. The United States sent a new proposal to the European Union on Thursday and India sent a delegation to Washington DC for more talks. "So we have countries approaching us with very good deals," Bessent said on Fox Business Network. "We have 18 important trading partners. ... If we can ink 10 or 12 of the important 18, there are another important 20 relationships, then I think we could have trade wrapped up by Labor Day," Bessent said. He did not mention any changes to a July 9 deadline for countries to reach deals with the United States or see tariffs spike higher but has previously said that countries negotiating in good faith could get deals. But Trump told reporters at the White House that he could extend the tariff deadline or "make it shorter," adding that within the next week and a half, he would notify countries of their tariff rates. "I'd like to just send letters out to everybody: Congratulations. You're paying 25 per cent" tariffs, Trump said in an apparent joke. Bessent said the United States and China had resolved issues surrounding shipments of Chinese rare earth minerals and magnets to the US, further modifying a deal reached in May in Geneva. China's commerce ministry said on Friday the two countries have confirmed details on the framework of implementing the Geneva trade talks consensus. It said China will approve export applications of controlled items in accordance with the law. It did not mention rare earths. US President Donald Trump has abruptly cut off trade talks with Canada over its tax targeting US technology firms, calling it a "blatant attack" and saying that he would set a new tariff rate on Canadian goods within the next week. The move plunges US relations with its second-largest trading partner back into chaos after a period of relative calm. It also came just hours after Treasury Secretary Scott Bessent struck an upbeat tone on trade, touting progress had been made with China on reviving the flow of critical minerals for the US manufacturing sector and in other key tariff negotiations. The often-chaotic rollout of Trump's import levies since his return to office this year have frequently whipsawed financial markets, and have begun to weigh on consumer spending, the bedrock of the US economy. US stocks were briefly batted lower by his broadside against Canada but managed to close out the week at record highs for the S&P 500 and Nasdaq. Trump's action comes ahead of Canada's plans to begin collecting on Monday a longstanding digital services tax on US technology firms including Amazon, Meta, Alphabet's Google and Apple among others. The tax is 3.0 per cent of the digital services revenue a firm takes in from Canadian users above $US20 million ($A31 million) in a calendar year, and payments will be retroactive to 2022. Trump, in a post on his Truth Social media platform, called the tax "a direct and blatant attack on our country" and said Canada was a "very difficult country to TRADE with". "Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump said. "We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period." Canada is the second-largest US trading partner after Mexico, buying $US349.4 billion of US goods last year and exporting $US412.7 billion to the US, according to US Census Bureau data. Canadian Prime Minister Mark Carney had said on June 16 he and Trump agreed to try to wrap up a new economic and security deal within 30 days. "The Canadian government will continue to engage in these complex negotiations with the United States in the best interests of Canadian workers and businesses," Carney's office said in a statement. Earlier on Friday, Bessent said the Trump administration's various trade deals with other countries could be done by the September 1 Labor Day holiday, citing talks with 18 top trade partners and another revision to a deal with China to reopen the flow of rare earth minerals and magnets. The United States sent a new proposal to the European Union on Thursday and India sent a delegation to Washington DC for more talks. "So we have countries approaching us with very good deals," Bessent said on Fox Business Network. "We have 18 important trading partners. ... If we can ink 10 or 12 of the important 18, there are another important 20 relationships, then I think we could have trade wrapped up by Labor Day," Bessent said. He did not mention any changes to a July 9 deadline for countries to reach deals with the United States or see tariffs spike higher but has previously said that countries negotiating in good faith could get deals. But Trump told reporters at the White House that he could extend the tariff deadline or "make it shorter," adding that within the next week and a half, he would notify countries of their tariff rates. "I'd like to just send letters out to everybody: Congratulations. You're paying 25 per cent" tariffs, Trump said in an apparent joke. Bessent said the United States and China had resolved issues surrounding shipments of Chinese rare earth minerals and magnets to the US, further modifying a deal reached in May in Geneva. China's commerce ministry said on Friday the two countries have confirmed details on the framework of implementing the Geneva trade talks consensus. It said China will approve export applications of controlled items in accordance with the law. It did not mention rare earths.
