ASX to fall, Wall St tumbles on renewed Trump trade wars
The Dow Jones Industrial Average tumbled near 650 points near 2.30pm in New York.
The president sent each nation a letter detailing his plans; he's expected to send about 12 letters on Monday (Tuesday AEST). At a White House briefing, his spokeswoman said the deadline for trade deals will formally later on Monday be pushed to August 1 from July 9.
The tariff rates for Japan and South Korea are in line with what Trump initially proposed. In a Truth Social post, he warned each nation not to retaliate.
Market highlights
ASX futures are pointing down 32 points or 0.4 per cent to 8541.
All US prices as of 2.30pm New York time.
Today's agenda
The RBA meets on Tuesday and it's widely expected that policymakers will vote for a 25 basis point cut.
Top stories
Billions for Made in Australia program 'may look protectionist' | The Productivity Commission has warned the government that its subsidies for domestic industry could be considered protectionism and suggested slashing tariffs on 300 imported goods.
Trump to levy 25pc tariffs on Japan, South Korea in August | The US president warned the nations against retaliation in his letters to them, saying any actions would be met with a response from the US.
Why the RBA's rate cuts won't fuel essential investment | Lower interests rate will not be enough to rev the engines of Australia's economy. The reform roundtable cannot come quickly enough, writes Paul Brennan.
| New research suggests a 40 per cent fall in analysts dialling in. In Australia, veterans say it's down to fewer, more junior, sell-side researchers.
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The European Union is bracing for a possible letter from US President Donald Trump outlining planned duties on his country's largest trade and investment partner. The EU initially hoped to strike a comprehensive trade agreement, including zero-for-zero tariffs on industrial goods, but months of difficult talks have led to the realisation it will probably have to settle for an interim agreement and hope something better can still be negotiated. The 27-country bloc is under conflicting pressures as powerhouse Germany urged a quick deal to safeguard its industry while other EU members, such as France, have said EU negotiators should not cave into a one-sided deal on US terms. After keeping much of the world guessing his intentions, Trump has outlined new tariffs for a number of countries, including allies Japan and South Korea, along with a 50 per cent tariff on copper and a hike to 35 per cent on Canadian goods. 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Trump's 35 per cent tariff on Canada is an increase from the current 25 per cent rate he had assigned and is a blow to Canadian Prime Minister Mark Carney, who was seeking to agree a trade pact with the US. According to Trump, the new rate will take effect on August 1 and could go up further if Canada retaliates. "Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses. We will continue to do so as we work towards the revised deadline of August 1," Carney said on X. The EU has drawn up countermeasures against Trump's tariffs but has not imposed them. An initial 21 billion euros ($A37.2 billion) of levies on US imports due in April was suspended before taking effect. Another package, on 72 billion euros of US imports, could also be applied. "Basically, if a political decision is made to extend the suspension, then we'll extend the suspension," Gill said. 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The 27-country bloc is under conflicting pressures as powerhouse Germany urged a quick deal to safeguard its industry while other EU members, such as France, have said EU negotiators should not cave into a one-sided deal on US terms. After keeping much of the world guessing his intentions, Trump has outlined new tariffs for a number of countries, including allies Japan and South Korea, along with a 50 per cent tariff on copper and a hike to 35 per cent on Canadian goods. Trump's cascade of tariff orders since returning to the White House has begun generating tens of billions of dollars a month in new revenue for the US government. US customs duties revenue shot past $US100 billion ($A152 billion) in the federal fiscal year through to June, according to US Treasury data on Friday - equal to or greater than the largest annual take ever from customs duties. "We remain locked and loaded to sign an agreement with the US. 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After keeping much of the world guessing his intentions, Trump has outlined new tariffs for a number of countries, including allies Japan and South Korea, along with a 50 per cent tariff on copper and a hike to 35 per cent on Canadian goods. Trump's cascade of tariff orders since returning to the White House has begun generating tens of billions of dollars a month in new revenue for the US government. US customs duties revenue shot past $US100 billion ($A152 billion) in the federal fiscal year through to June, according to US Treasury data on Friday - equal to or greater than the largest annual take ever from customs duties. "We remain locked and loaded to sign an agreement with the US. Let's see what happens when our friends in Washington wake up a few hours from now," EU spokesman Olof Gill told a briefing. A source with knowledge of the US-EU negotiations said an agreement was close but that it was hard to predict if the EU might still get a letter announcing more tariffs or when any agreement might be finalised. An EU diplomat, speaking on condition of anonymity, said the EU was strong when it acted together. "It is important that the pain or gain is distributed equally. We cannot have just one country or sector that takes the win." Trump's 35 per cent tariff on Canada is an increase from the current 25 per cent rate he had assigned and is a blow to Canadian Prime Minister Mark Carney, who was seeking to agree a trade pact with the US. According to Trump, the new rate will take effect on August 1 and could go up further if Canada retaliates. "Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses. We will continue to do so as we work towards the revised deadline of August 1," Carney said on X. The EU has drawn up countermeasures against Trump's tariffs but has not imposed them. An initial 21 billion euros ($A37.2 billion) of levies on US imports due in April was suspended before taking effect. Another package, on 72 billion euros of US imports, could also be applied. "Basically, if a political decision is made to extend the suspension, then we'll extend the suspension," Gill said. "If we need to unsuspend it, we can do that, you know, at the drop of a hat," he added. Elsewhere US Secretary of State Marco Rubio met with Chinese Foreign Minister Wang Yi in Kuala Lumpur on Friday, as the two powers vied to push their agendas in Asia. Both sides described the meeting as constructive. China this week warned the United States against reinstating hefty levies on its goods next month and China has also threatened to retaliate against countries that strike deals with the US to cut China out of supply chains.
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Donald Trump expected to ‘turn his mind' to Ukraine war shortly
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