Nvidia CEO Huang replaces Elon Musk as China's bridge to Trump
KEN MORIYASU and YIFAN YU
WASHINGTON/PALO ALTO, California -- In the summer of 2018, two red Teslas drove into Beijng's Zhongnanhai, the walled-off compound that houses the headquarters of the Chinese Communist Party and the State Council.
The Teslas parked in front of the Zi Guang Ge, or Hall of Purple Light, and CEO Elon Musk walked into the two-story pavilion to meet the powerful vice president, Wang Qishan, a close ally to President Xi Jinping.
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The Mainichi
6 hours ago
- The Mainichi
Trump injects a new dose of uncertainty in tariffs as he pushes start date back to Aug. 7
WASHINGTON (AP) -- For weeks, President Donald Trump was promising the world economy would change on Friday with his new tariffs in place. It was an ironclad deadline, administration officials assured the public. But when Trump signed the order Thursday night imposing new tariffs, the start date of the punishing import taxes was pushed back seven days so the tariff schedule could be updated. The change in tariffs on 66 countries, the European Union, Taiwan and the Falkland Islands was potentially welcome news to countries that had not yet reached a deal with the U.S. It also injected a new dose of uncertainty for consumers and businesses still wondering what's going to happen and when. Trump told NBC News in a Thursday night interview the tariffs process was going "very well, very smooth." But even as the Republican president insisted these new rates would stay in place, he added: "It doesn't mean that somebody doesn't come along in four weeks and say we can make some kind of a deal." Trump has promised that his tax increases on the nearly $3 trillion in goods imported to the United States will usher in newfound wealth, launch a cavalcade of new factory jobs, reduce the budget deficits and, simply, get other countries to treat America with more respect. The vast tariffs risk jeopardizing America's global standing as allies feel forced into unfriendly deals. As taxes on the raw materials used by U.S. factories and basic goods, the tariffs also threaten to create new inflationary pressures and hamper economic growth -- concerns the Trump White House has dismissed. Questions swirl around the tariffs despite Trump's eagerness As the clock ticked toward Trump's self-imposed deadline, few things seemed to be settled other than the president's determination to levy the taxes he has talked about for decades. The very legality of the tariffs remains an open question as a U.S. appeals court on Thursday heard arguments on whether Trump had exceeded his authority by declaring an "emergency" under a 1977 law to charge the tariffs, allowing him to avoid congressional approval. Trump was ebullient as much of the world awaited what he would do. "Tariffs are making America GREAT & RICH Again," he said Thursday morning on Truth Social. Others saw a policy carelessly constructed by the U.S. president, one that could impose harms gradually over time that would erode America's power and prosperity. "The only things we'll know for sure on Friday morning are that growth-sapping U.S. import taxes will be historically high and complex, and that, because these deals are so vague and unfinished, policy uncertainty will remain very elevated," said Scott Lincicome, a vice president of economics at the Cato Institute. "The rest is very much TBD." The new tariffs build off ones announced in the spring Trump initially imposed the Friday deadline after his previous "Liberation Day" tariffs in April resulted in a stock market panic. His unusually high tariff rates announced then led to recession fears, prompting Trump to impose a 90-day negotiating period. When he was unable to create enough trade deals with other countries, he extended the timeline and sent out letters to world leaders that simply listed rates, prompting a slew of hasty agreements. Swiss imports will now be taxed at a higher rate, 39%, than the 31% Trump threatened in April, while Liechtenstein saw its rate slashed from 37% to 15%. Countries not listed in the Thursday night order would be charged a baseline 10% tariff. Trump negotiated trade frameworks over the past few weeks with the EU, Japan, South Korea, Indonesia and the Philippines -- allowing the president to claim victories as other nations sought to limit his threat of charging even higher tariff rates. He said Thursday there were agreements with other countries, but he declined to name them. Asked on Friday if countries were happy with the rates set by Trump, U.S. Trade Representative Jamieson Greer said: "A lot of them are." Thursday began with a palpable sense of tension The EU was awaiting a written agreement on its 15% tariff deal. Switzerland and Norway were among the dozens of countries that did not know what their tariff rate would be, while Trump agreed after a Thursday morning phone call to keep Mexico's tariffs at 25% for a 90-day negotiating period. The president separately on Thursday amended an order to raise certain tariffs on Canada to 35%. European leaders face blowback for seeming to cave to Trump, even as they insist that this is merely the start of talks and stress the importance of maintaining America's support of Ukraine's fight against Russia. Canadian Prime Minister Mark Carney has already indicated that his country can no longer rely on the U.S. as an ally, and Trump declined to talk to him on Thursday. India, with its 25% tariff announced Wednesday by Trump, may no longer benefit as much from efforts to pivot manufacturing out of China. While the Trump administration has sought to challenge China's manufacturing dominance, it is separately in extended trade talks with that country, which faces a 30% tariff and is charging a 10% retaliatory rate on the U.S. Major companies came into the week warning that tariffs would begin to squeeze them financially. Ford Motor Co. said it anticipated a net $2 billion hit to earnings this year from tariffs. French skincare company Yon-Ka is warning of job freezes, scaled-back investment and rising prices. It's unclear whether Trump's new tariffs will survive a legal challenge Federal judges sounded skeptical Thursday about Trump's use of a 1977 law to declare the long-standing U.S. trade deficit a national emergency that justifies tariffs on almost every country. "You're asking for an unbounded authority," Judge Todd Hughes of the U.S. Court of Appeals for the Federal Circuit told a Justice Department lawyer representing the administration. The judges didn't immediately rule, and the case is expected to reach the Supreme Court eventually. The Trump White House has pointed to the increase in federal revenues as a sign that the tariffs will reduce the budget deficit, with $127 billion in customs and duties collected so far this year -- about $70 billion more than last year. New tariffs threaten to raise inflation rates There are not yet signs that tariffs will lead to more domestic manufacturing jobs, and Friday's employment report showed the U.S. economy now has 37,000 fewer manufacturing jobs than it did in April. On Thursday, one crucial measure of inflation, known as the Personal Consumption Expenditures index, showed that prices have climbed 2.6% over the 12 months that ended in June, a sign that inflation may be accelerating as the tariffs flow through the economy. The prospect of higher inflation from the tariffs has caused the Federal Reserve to hold off on additional cuts to its benchmark rates, a point of frustration for Trump, who on Truth Social, called Fed Chair Jerome Powell a "TOTAL LOSER." But before Trump's tariffs, Powell seemed to suggest that the tariffs had put the U.S. economy and much of the world into a state of unknowns. "There are many uncertainties left to resolve," Powell told reporters Wednesday. "So, yes, we are learning more and more. It doesn't feel like we're very close to the end of that process. And that's not for us to judge, but it does -- it feels like there's much more to come."
Nikkei Asia
6 hours ago
- Nikkei Asia
Tesla ordered by Florida jury to pay $243m in fatal Autopilot crash
(Reuters) -- A Florida jury on Friday found Tesla liable to pay $243 million to victims of a 2019 fatal crash of an Autopilot-equipped Model S, a verdict that could encourage more legal action against Elon Musk's electric vehicle company. The verdict is a rare win for victims of accidents involving Autopilot. Musk has been pushing to rapidly expand Tesla's recently launched robotaxi business based on an advanced version of its driver assistance software. Tesla shares fell 1.8% on Friday, and are down 25% this year. Jurors in Miami federal court awarded the estate of Naibel Benavides Leon, as well as her former boyfriend Dillon Angulo, $129 million in compensatory damages plus $200 million in punitive damages, according to a verdict sheet. Tesla was held liable for 33% of the compensatory damages, or $42.6 million. Jurors found the driver George McGee liable for 67%, but he was not a defendant and will not have to pay his share. "Tesla designed Autopilot only for controlled-access highways yet deliberately chose not to restrict drivers from using it elsewhere, alongside Elon Musk telling the world Autopilot drove better than humans," Brett Schreiber, a lawyer for the plaintiffs, said in a statement. "Today's verdict represents justice for Naibel's tragic death and Dillon's lifelong injuries," he added. Tesla said it will appeal. "Today's verdict is wrong and only works to set back automotive safety and jeopardize Tesla's and the entire industry's efforts to develop and implement life-saving technology," the company said. The plaintiffs had sought $345 million of damages. Their lawyers said the trial was the first involving the wrongful death of a third party resulting from Autopilot. Tesla has faced many similar lawsuits over its vehicles' self-driving capabilities, but they have been resolved or dismissed without getting to trial. In June, a judge rejected Tesla's bid to dismiss the Florida case. Experts said Friday's verdict may spur more lawsuits, and could make future settlements more costly. "It's a big deal," said Alex Lemann, a law professor at Marquette University. "This is the first time that Tesla has been hit with a judgment in one of the many, many fatalities that have happened as a result of its Autopilot technology." The verdict could also impede efforts by Musk, the world's richest person, to convince investors that Tesla can become a leader in so-called autonomous driving for private vehicles as well as robotaxis it plans to start producing next year. As Tesla's electric vehicle sales fall, much of its nearly $1 trillion market value hinges on Musk's ability to pivot the company into robotics and artificial intelligence. The trial concerned an April 25, 2019, incident where McGee drove his 2019 Model S at about 100 kph through an intersection into the victims' parked Chevrolet Tahoe as they were standing beside it on a shoulder. McGee had reached down to pick up a cellphone he dropped on his car's floorboard and allegedly received no alerts as he ran a stop sign and stop light before hitting the victims' SUV. Benavides Leon was allegedly thrown 23 meters to her death, while Angulo suffered serious injuries. "We have a driver who was acting less than perfectly, and yet the jury still found Tesla contributed to the crash," said Philip Koopman, a Carnegie Mellon University engineering professor and expert in autonomous technology. "The only way the jury could have possibly ruled against Tesla was by finding a defect with the Autopilot software," he added. "That's a big deal." Tesla, in its statement, said McGee was entirely at fault. "To be clear, no car in 2019, and none today, would have prevented this crash," the company said. "This was never about Autopilot; it was a fiction concocted by plaintiffs' lawyers blaming the car when the driver -- from day one -- admitted and accepted responsibility."
NHK
6 hours ago
- NHK
US Fed Governor Kugler to resign, allowing Trump to pick replacement
The US Federal Reserve has announced that its board member, Adriana Kugler, will step down on August 8. President Donald Trump will replace her with his pick. The Fed said on Friday that Kugler will resign and return to a university as a professor this fall. She will have resigned before the end of her term set in January next year. Kugler is one of the seven members of the board of governors. The Fed chair is elected from the board members. US media suggested Trump would take the opportunity to influence the leadership of the central bank. Trump has strongly criticized Fed Chair Jerome Powell over monetary policies, apparently believing he should resign. News outlet Axios reported that Kugler's resignation will give Trump "an early opportunity to appoint a favored candidate for potential leadership of the central bank." Trump spoke to reporters after Kugler's resignation was announced. He said, "I'm very happy" that "I have an open spot on the Federal Reserve Board."
