Trump to put 25% tariffs on Japan and South Korea
Trump provided notice of the tariffs to begin on Aug. 1 by posting letters on Truth Social that were addressed to the leaders of both countries. The letters warned both countries to not retaliate by increasing their own import taxes, or else the Trump administration would increase import taxes that could damage the auto and electronics sectors of Japan and South Korea, two crucial partners for the U.S. in countering China's influence.
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Yahoo
18 minutes ago
- Yahoo
The deadly drug that's complicating US-China trade
Since US President Donald Trump – just days into his second term – began imposing tariffs on China for its role in the flow of deadly opioids like fentanyl into the United States, Beijing's message has been clear. The fentanyl crisis is the 'US's problem,' Chinese officials have repeatedly said, and China has already done 'tremendous work' to address the issue. 'We stand ready for practical cooperation with the US based on equality and mutual respect. That said, we firmly oppose the US pressuring, threatening and blackmailing China under the pretext of the fentanyl issue,' a spokesperson said in March, after Trump's fentanyl tariffs were raised to 20% on all Chinese imports into the US. But as those tariffs remain in place months later and, despite a truce de-escalating other duties, Beijing is signaling it's paying attention to the issue – and may be prepared to do more. China late last month announced it will add two more fentanyl precursors to its list of controlled substances – an expected step that brought it in line with international regulations, which its diplomats presented as a mark of 'active participation' in global drug control. Days earlier, Chinese authorities also extended control over another class of drug known as nitazenes – powerful synthetic opioids raising alarm among global health officials. The same day, Chinese Minister of Public Security Wang Xiaohong told US Ambassador to China David Perdue that Beijing was open to strengthening 'practical cooperation' on drug control. The Trump administration blames China for 'sustaining' the influx into the US of fentanyl, a lab-made, synthetic opioid dozens of times more potent than heroin. Abuse of the drug and its analogues has fueled a drug overdose crisis in the US, killing tens of thousands of Americans annually, though those numbers saw a significant drop last year. In Beijing's view, it's gone above and beyond international norms to stem the outflow of the drug and its component chemicals from its vast pharmaceuticals sector. In 2019 Beijing controlled fentanyl as a drug class – a significant move that drastically reduced the flow of the finished drug directly from China to the US, according to experts and US officials. It didn't take long for criminal networks to adapt, however. Chinese outfits shifted to selling precursor chemicals often to cartel-backed labs in Mexico, which then make and ship illegal fentanyl and similar drugs to the US. Chinese authorities have since controlled a number of these precursor chemicals. But experts and US officials say more could be done – as Beijing remains the largest source for products used to make illegal fentanyl and other synthetic drugs in Mexico and other countries. Chinese officials haven't explicitly linked their recent efforts at controlling two more of these substances to relations with the US, instead calling them another example of the 'goodwill China has shown,' and continuing to reject the premise of the US tariffs. But Beijing is likely expecting it will get credit for the latest moves in trade negotiations with the US. The question, however, is whether the steps will move the needle for Washington – and whether the two sides will be able to cooperate on the issue if their overall relations remain rocky. 'If Washington does not publicly recognize Chinese steps and show responsiveness to Beijing's own concerns, then bilateral law enforcement cooperation likely will falter going forward,' said Ryan Hass, director of the John L. Thornton China Center at the Brookings Institution. As US-China ties have chafed on everything from technology to China's militarization of the South China Sea, few issues have appeared more personal to American leaders than China's role as a producer of the drugs and chemicals fueling an opioid crisis in the US. During his first term, Trump hailed Chinese leader Xi Jinping's 'wonderful humanitarian gesture' of designating fentanyl a controlled substance in China. Some six years later, however, Trump began his second term accusing China of 'actively sustaining and expanding the business of poisoning our citizens' – an accusation vehemently denied by China. That message also contrasts with assessments from the US Drug Enforcement Agency which, in an annual report released in May, said fentanyl purity declined throughout 2024, consistent with indications that fentanyl cooks in Mexico were having trouble obtaining key precursor chemicals. That was as some China-based suppliers were 'wary of supplying controlled precursors … demonstrating an awareness on their part that the Chinese government is controlling more fentanyl precursors,' it said. Beijing's latest moves to control the two additional fentanyl precursors and nitazenes are positive actions that could have an impact on illicit drug supply chains, experts say. But they are also 'clever maneuvering' from China, according to Vanda Felbab-Brown, a senior fellow at the Strobe Talbott Center for Security, Strategy, and Technology at the Brookings Institution. A UN convention on illicit drugs added the two fentanyl precursors to its list of controlled substances last year, meaning signatory countries such as China must follow suit. China controlled a number of nitazenes in 2024 and the latest step, which expands those controls, was already in the works last fall, Felbab-Brown said. 'The Trump administration just reset the clock, did not recognize what China had already done and had committed to do, did not give China any credit for that. As a result, it also now is in a position where China can be promising to do exactly the same actions that it had promised to the Biden administration and use that as part of the bargaining,' Felbab-Brown said. A 'more effective posture' would have been to embrace China's efforts in 2024 and then ask it to fill in the 'substantial and impactful' holes in its drug control program, she added. Beijing has fiercely defended its record when it comes to controlling fentanyl and other synthetic drugs, releasing a 7,000-word white paper outlining its efforts in March, days after Trump imposed his second raft of fentanyl-linked tariffs. It has also balked at a Congressional report released last year accusing the ruling Chinese Communist Party of directly subsidizing the manufacture and export of illicit fentanyl materials and other synthetic narcotics through tax rebates. In China, where the Communist Party keeps a tight grip on all aspects of society, there's comparatively limited opioid abuse, according to official data – a situation Beijing uses to suggest the problem is about American appetite for the drug, not Chinese supply. That also means Chinese officials feel they've gone out of their way to work with Washington on a US domestic issue – efforts they see as being greeted first by a lack of American appreciation, and then by tariffs. Scientists in China on the front lines of identifying new precursors being used by criminal groups also point to reducing demand in the US as a key factor, given the challenges of controlling chemicals involved in synthesizing opioids. 'You really can't solve the fentanyl problem through control alone… the most fundamental issue is still reducing demand,' Hua Zhendong, deputy director of a drug analysis division at a counternarcotics laboratory under China's Ministry of Public Security, told CNN in an interview last September. He pointed to how some chemicals have widespread use in legitimate products, making them impractical to control, while chemicals used to make fentanyl can be easily adjusted to evade rules but still produce the product. 'It's always been like a cat-and-mouse game, because there could be thousands of potential substances for synthesizing fentanyl, we can't proactively control them all – we can only passively follow behind,' said Hua, whose lab was working regularly with US counterparts at the time of the interview to share information on emerging chemicals. Outside observers agree that US efforts to curb demand are critical for mitigating the opioid crisis. They note too that even if no chemicals came from China, fentanyl makers would look to other countries with large pharmaceuticals and chemicals industries, such as India. Des pite the challenges of enforcement in a vast sector where goods are often shipped in covert ways by busy air and sea routes, observers also say that more can be done in China. That includes tightening regulations to enable tougher punishments for people who sell controlled precursors to criminal groups or their middlemen unknowingly. Experts also say more could also be done to enforce existing regulations, especially in terms of how central government edicts are enforced by local authorities across China. 'Scheduling drugs and precursors that lead to the production of illegal drugs is one step of many needed in China,' said David Luckey, a senior international and defense researcher at RAND, a US-based think tank. 'I would suggest better still would be actually preventing Chinese companies from selling and distributing these harmful chemicals and drugs to criminal organizations in Mexico.' In addition to China, Trump placed tariffs on Mexico and Canada earlier this year, accusing them of not doing enough to curb migration and fentanyl trafficking, but carved out significant exemptions to those tariff rates. The US earlier this year designated Mexican cartels it alleges are involved in fentanyl trafficking as foreign terrorist organizations. 'China is a command economy with extreme control of its population – I think if the Chinese Communist Party didn't want Chinese companies doing this, the CCP could do more to stop it, and be more effective in stopping it,' Luckey said. An annual US State Department report on narcotics controls released in March described China's 'significant steps' working with the US last year to reduce precursor exports, which it said included cracking down on online platforms and companies selling them, making arrests, and adding 55 synthetic drugs and precursor chemicals to control lists. China's Ministry of Public Security last month said it had seized more than 1,400 tons of various precursor chemicals, and 151 related criminal cases were resolved in 2024. But authorities in China also acknowledge the scope of the problem, with a recent report noting that channels and means for smuggling chemicals out of the country 'were increasing' and 'constantly being updated,' creating 'greater challenges.' Beijing – which seeks to present itself as a responsible global player – has its own reasons for not wanting to be seen as an international purveyor of illicit drugs. But Chinese officials have long linked cooperation with the US on the issue to the health of the broader relationship. China cut off drug control cooperation completely in August 2022 in retaliation for then House Speaker Nancy Pelosi's visit to Taiwan. It then took a friendly summit between Xi and former US President Joe Biden in late 2023 to get collaboration back on track. This time around, China has bristled at the Trump administration's off-the-bat imposition of tariffs, saying it 'undermines' cooperation. The White House did not respond to a CNN request for comment on China's latest control steps. 'If the US truly wants to cooperate with China, it should face up to the objective facts, correct its wrongdoing, and seek dialogue with China,' a Chinese foreign ministry spokesperson said last month when asked whether those measures were done in cooperation with the US or at its behest. But Beijing is also keenly aware that the current tariffs are hitting at a time when China's economy has already been struggling with domestic challenges – and there's no certainty those duties couldn't rise again under Trump's capricious trade policy. 'Since the 20% tariff is specifically linked to cooperation on fentanyl, the Chinese might be hoping for a package deal that includes trade, counternarcotics, among other things,' said Yun Sun, director of the China program at the Stimson Center think tank in Washington. 'The Chinese hope to remove the 20% tariff … (and are) eager to get President Trump to visit China this year, so they need to work out good progress,' she said.
Yahoo
28 minutes ago
- Yahoo
'I get euphoric': Warren Buffett once said he 'loves it' when the US stock market does this one thing
Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. In the wake of President Donald Trump's reciprocal tariff announcements, markets have see-sawed as investors try to find their footing — but depending on your investment perspective this might not be a bad thing. For instance, legendary investor Warren Buffett is on record saying he's fond of bear Markets. 'I love it when the things we buy go down. I get euphoric — you know the stocks are down today and I'm buying more of something I was buying yesterday — I'm buying it cheaper,' he said during an October 2014 interview with Fortune Magazine. This advice could be as valid today as it was then. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) You don't have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here's how In the first quarter of 2025, both the S&P 500 index and the Nasdaq Composite recorded their highest losses since 2022, breaking a five-quarter winning streak. During this time the CBOE (VIX) — often referred to as Wall Street's 'fear gauge' — experienced one of its largest leaps at a 33.97 point increase on April 8, based on confusion surrounding U.S. reciprocal tariff policy. This was the largest jump the CBOE has seen in the last year. Buffett's approach offers a different way to view those unsettling red numbers in your brokerage account. He likened it to grocery shopping — where finding items at a reduced price is a win. Yet, when it comes to stocks, some investors don't apply the same bargain-hunting mindset. 'They think that the stock knows more than they do, so that when the stock goes down, they say the stock is telling them something … they take it as kind of a referendum on themselves, me versus the stock: 'If it ever gets back to what I paid, I'm going to sell it,'' he observed. But for Buffett, a drop in stock prices signals the chance to get more for his money. Buffett's long-term investing approach has resonated with many. He recommends investors avoid short-term market noise and buy low-cost index funds instead, regardless of broader market conditions. 'If you're worried about corrections, you shouldn't own stocks,' Buffett said during an interview with The Street in 2015. 'The point is to buy something you like at a price you like, and then hold it for 20 years. You should not look at it day-to-day.' Consistently investing in a low-cost index fund can compound your wealth over time, thanks to dollar-cost averaging. For instance, if you routinely invest $20 every week for 20 years, you'll end up with just over $51,300, assuming an annual compound interest rate of 8%. Buffett believes that today's investors have more flexibility than ever to potentially build their empire through stock investing. But he also cautioned that this can be a double-edged sword. While it allows investors to make swift moves, it can also lead to hasty decisions. 'It's a huge advantage which people turn into a disadvantage,' Buffett said, adding that making investments based solely on stock price movements is misguided. 'There is nothing about the price action of the stock that tells you whether you should keep owning [it].' Read more: Rich, young Americans are ditching the stormy stock market — Buffett believes that holding onto a stock should depend on what your expectations are for the company's future performance, not how much it's worth now. This can be complicated to assess, especially amid rapid-fire economic policy changes. But Moby's jargon-free market research can help you out. Moby is run by a team of former hedge fund analysts, and their track record speaks for itself. The platform's stock picks have outperformed the S&P 500 index by 11.95% on average over the past four years. That's on top of the index's 10% annualized gains during this period. In fact, over 75 stock recommendations from Moby delivered returns greater than 100%. With Moby Premium, you can access high-quality research in easy-to-understand reports from Wall Street veterans. Sign up today and become a smarter investor within minutes. Historically, bear market conditions don't last forever — even if they can drag during a deep recession. But short-term fluctuations are worrisome, especially if most of your wealth is concentrated in the stock market. To protect yourself from market chaos, consider diversifying a portion of your portfolio into alternative assets that traditionally withstand the test of time. Assets like real estate can sometimes offer much-needed relief. New investing platforms are making it easier than ever to tap into the real estate market. For accredited investors, Homeshares gives access to the $36 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors. With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property. With risk-adjusted internal returns ranging from 12% to 18%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets. Gold — often considered a safe haven asset — can also be a diversifier. The precious metal can add value to your portfolio, with prices climbing past $3,000 per ounce this year. Priority Gold is an industry leader in precious metals, offering physical delivery of gold and silver. Plus, they have an A+ rating from the Better Business Bureau and a 5-star rating from Trust Link. If you'd like to convert an existing IRA into a gold IRA, Priority Gold offers 100% free rollover, as well as free shipping, and free storage for up to five years. Qualifying purchases will also receive up to $10,000 in free silver. To learn more about how Priority Gold can help you reduce inflation's impact on your nest egg, download their free 2025 gold investor bundle. Alternative assets like art could also be valuable additions to your portfolio. Art has historically been negatively correlated with stocks — meaning they have been known to go up in value during a market downturn. For decades, blue chip art was only accessible to the ultra-wealthy. In 2024, elite investors allocated as much as 25% of their total portfolios to art collections. But Masterworks is changing that. You can invest in fractional shares of works from artists like Banksy, Picasso, and Basquiat. From their 23 exits so far, Masterworks investors have realized representative annualized net returns like +17.6%, +17.8%, and +21.5% among assets held longer than a year. Get priority access and start investing in fine art within minutes. See important Regulation A disclosures at Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid? This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk Car insurance in America could climb to a stunning $2,502/year on average — but here's how 2 minutes can save you more than $600 in 2025 Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Money doesn't have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. 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
USA Today
38 minutes ago
- USA Today
Trump almost died a year ago. That moment changed the direction of America.
Donald Trump's near brush with death in July 2024 and the way he handled it with bravery energized not only his base – but also those who had been hesitant to support him. A lot has happened since July 13, 2024. I remember vividly the moment when my husband told me that Donald Trump had been shot at a campaign rally in Butler, Pennsylvania. It was shocking. I didn't believe him. At first we didn't know what had happened or how seriously the former president was hurt. Then those images of Trump with blood streaming down his face and his fist in the air emerged. He said the word 'fight.' Trump was letting us know he was OK. It was the moment that changed everything. Trump's near brush with death and the way he handled it with bravery energized not only his base – but also those who had been hesitant to support him. The momentum shift almost certainly led to then-President Joe Biden finally deciding to drop out of the race. And former Vice President Kamala Harris proved no match for Trump. After the attack, Trump said he believed God spared him to help 'straighten out' the country. Despite the typical Trumpian bravado, there's a lot to be said for what he's done for the country since his reelection. Opinion: Partisan blame game after Texas flood is ugly. How low will Democrats go? Trump is fulfilling his promise to fix the border and the economy Trump ran on securing the border and turning around the inflation-plagued economy. And he's following through. Under Biden's open-border policies, record numbers of migrants crossed illegally, overwhelming border agents for years. Within weeks of Trump taking office, things changed dramatically and border encounters reached historic lows. The numbers speak for themselves. According to the U.S. Customs and Border Protection, in May, the Border Patrol released zero illegal migrants into the country. That's a huge drop from May 2024, when agents released 62,000 migrants along the southern border. Opinion alerts: Get columns from your favorite columnists + expert analysis on top issues, delivered straight to your device through the USA TODAY app. Don't have the app? Download it for free from your app store. Border encounters in general have fallen 93%. In May, the Border Patrol encountered 8,725 illegal migrants at the border, while in May 2024, that number was 117,905. Trump's tough measures on immigration are working. Opinion: With Mamdani, Democrats flirt with full-tilt socialism. But his plan is alarming. The economy also is on the upswing. The stock market is soaring, and the latest jobs report outpaced expectations. Consumers are feeling more confident with inflation falling. If Trump would just lay off the chaotic tariff business, the economy would be going even more gangbusters. Yet, even after Trump announced new tariffs July 9, the S&P 500 and Nasdaq Composite closed at all-time highs. Democrats have tried – and failed – to sink Trump As I reflect on the first anniversary of Trump's near-assassination, I also think about how completely ineffective Democrats have been in their years-long war against the president. Opinion: Finally! Penn will erase trans athlete's records. But are they just biding time? They've impeached Trump (twice). They've made him a federal felon. They've claimed he is Hitler. They said he would end democracy. Nothing Democrats have done or said has worked. And their myopic focus on Trump has led them to neglect defining who they are. Voters have noticed, and Democrats have dealt with record-low approval ratings. A recent poll from Democratic super PAC Unite the Country, obtained by The Hill, shows that voters see the Democratic Party as 'out of touch,' 'woke' and 'weak.' And Trump? He is looking stronger than ever. Ingrid Jacques is a columnist at USA TODAY. Contact her at ijacques@ or on X, formerly Twitter: @Ingrid_Jacques You can read diverse opinions from our USA TODAY columnists and other writers on the Opinion front page, on X, formerly Twitter, @usatodayopinion and in our Opinion newsletter.
