Trump Plans 100% Tariff on Chips With Carveout for Apple, Others
'We're going to be putting a very large tariff on chips and semiconductors, but the good news for companies like Apple is, if you're building in the United States, or have committed to build, without question, committed to build in the United States, there will be no charge,' Trump told reporters.
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Gold Pares Gains After Kremlin Confirms Meeting With Trump
(Bloomberg) -- Gold pared gains as markets weighed prospects for a truce in Ukraine after the Kremlin confirmed Presidents Vladimir Putin and Donald Trump would hold talks in the next few days. All Hail the Humble Speed Hump Mayor Asked to Explain $1.4 Billion of Wasted Johannesburg Funds Three Deaths Reported as NYC Legionnaires' Outbreak Spreads Major Istanbul Projects Are Stalling as City Leaders Sit in Jail PATH Train Service Resumes After Fire at Jersey City Station Bullion traded near $3,373 an ounce after earlier rising as much as 0.8%. Russia's announcement came a day after Putin met with Trump's envoy, Steve Witkoff, for almost three hours as the US pushed for an end to the Ukraine war. Bloomberg earlier reported that the Kremlin is considering options including an air truce, falling short of committing to a total ceasefire. Any easing of geopolitical tensions can curb demand for haven assets, pulling gold prices down. Traders are also watching US relations with global trading partners — marked this week by tariff hikes on Indian goods — and the likely nomination of a temporary Federal Reserve governor who may be more aligned with Trump's monetary agenda. Lower rates typically boost gold, which doesn't pay interest. Bullion has climbed almost 30% this year, though the bulk of those gains occurred in the first four months as geopolitical and trade tensions rattled the market. Spot gold rose 0.1% to $3,372.70 an ounce as of 12:05 p.m. in London. The Bloomberg Dollar Spot Index slipped 0.1%. Silver and palladium gained, while platinum fell. The Pizza Oven Startup With a Plan to Own Every Piece of the Pie Russia's Secret War and the Plot to Kill a German CEO AI Flight Pricing Can Push Travelers to the Limit of Their Ability to Pay A High-Rise Push Is Helping Mumbai Squeeze in Pools, Gyms and Greenery Government Steps Up Campaign Against Business School Diversity ©2025 Bloomberg L.P. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
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Trump's tariff war: Canada's sovereignty is the real issue, trade expert warns
U.S. President Donald Trump's trade war with Canada is ultimately about America's neighbour to the north giving up some of its sovereignty to the United States, according to a trade expert from accounting and consulting giant Pricewaterhousecoopers (PwC). The United States has imposed levies on Canadian steel, aluminum, copper, and certain automotive products. Last week, Trump hit Canada with a 35 per cent tariff on all goods not covered by the Canada-U.S.-Mexico Agreement (CUSMA), which he signed during his first presidency in 2018. That's up from 25 per cent last month. Canada's central bank estimates 95 per cent of non-energy exports are compliant with CUSMA, which is due for renegotiation next year. On Sunday, Dominic LeBlanc, Canada's minister responsible for Canada-U.S. trade, said Prime Minister Mark Carney and Trump are set to speak in the coming days. Michael Dobner, PwC's Canadian national leader of economics and policy practice, warns Trump's now well-worn claim that Canada should become 'the 51st state' is far more than negotiation table bluster. 'There is no real trade issue,' he told Yahoo Finance Canada on Tuesday. 'It's clear [Trump] is not willing to do a deal with Canada, and I think the reason for that is his aspirations regarding Canada are not the same as the EU and Japan.' We haven't really had a lot of luck with Canada. I think Canada could be one where they'll just pay tariffs. It's not really a negotiation.U.S. President Donald Trump speaking to reporters at the White House on July 25 According to Yale University's Budget Lab, 'Canada has borne the brunt of the damage from U.S. tariffs so far,' with its long-run economy 2.1 per cent smaller since the start of 2025, by its analysis. Statistics Canada's June trade figures show Canadian exporters did more business with the United States last month, even as tariffs increased. The federal agency says Canada's trade surplus with the U.S. grew to $3.9 billion in June, from $3.5 billion in May. In June of 2024, that figure was $8.4 billion. RBC assistant chief economist Nathan Janzen expects plunging export volumes to 'substantially subtract' from Canada's gross domestic product growth when second-quarter figures are released later in August. Meanwhile, Trump has repeatedly offered to convert Canada from a sovereign nation to 'the 51st state' during his second term as U.S. president. The move would enhance America's access to critical minerals largely controlled by China, and pave the way for U.S. access to new ocean shipping lanes in Canada's Arctic being created by melting sea ice. 'Full alignment' Dobner sees this as the crux of Trump's vision for future U.S.-Canada relations. He says this includes 'full alignment' on issues involving the economy and defence. 'We will stay Canada. You can look at the EU as a potential model here,' Dobner said. 'That means that Canada would, in this kind of arrangement, lose some of its independence in one way or another.' 'That's the big issue, not trade,' he added. With the clock ticking down to CUSMA's expiration, Dobner says PwC's business clients are scrambling to certify products under the agreement. At the same time, he says prolonged uncertainty between Canada and its largest trading partner has 'frozen' capital spending. Linda Hasenfratz, CEO of Guelph, Ont.-based autoparts manufacturer Linamar ( is on the front lines of the Canada-U.S. trade war. In a recent interview with Yahoo Finance Canada, she said if the U.S. were to apply tariffs to CUSMA-compliant autoparts, it would 'bring the industry to its knees,' as many of these items cross the border multiple times before installation in a finished vehicle. 'The Canada-U.S.-Mexico Agreement has thus far been key to Canada's perceived safety net,' CIBC Capital Markets chief economist Avery Shenfeld wrote in a report last week. 'Canada's edge tied to the USMCA carve-out is also only as durable as the USMCA itself, and it has to be extended by all parties or it expires in 2026. That cloud of uncertainty will hang over capital spending plans in a broad range of Canadian export sectors.' 'Whether any of this lasts will depend on Trump's word,' Shenfeld added. 'We've seen how shaky that foundation can be.' Dobner ultimately sees two paths for Canada: One, suffer the wrath of the Trump administration without a deal in place in the hopes that his successor will favour free trade, while businesses attempt to diversify their customer base. 'The other option is to get to some kind of economic union that is not a full annexation, so to speak, by the United States,' he said. 'Is it possible? Yes, I think it is. It depends how big the hardships that the U.S. administration is willing to put on Canada to push it towards that.' Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on X @jefflagerquist. Download the Yahoo Finance app, available for Apple and Android. 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
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Tariffs hit, Apple rises
By Mike Dolan LONDON (Reuters) - What matters in U.S. and global markets today By Mike Dolan, Editor-At-Large, Finance and Markets Wall Street and global stocks rose on Thursday, as Apple's domestic investment push, dovish noises on interest rates and a generally upbeat earnings season trumped chip stock hits and the arrival of the U.S. tariff day. The day's diary is topped by a likely Bank of England interest rate cut and U.S. weekly jobless numbers that take on unusual importance in light of last week's July payrolls confusion. * Stocks in Asia and Europe pushed higher even as U.S. tariffs were introduced, with Shanghai's index hitting its highest since 2021 following above-forecast Chinese import and export numbers for July. Although eight major trading partners accounting for about 40% of U.S. trade flows have reached framework deals to reduce tariffs to 15% or less, imports from Brazil, India, Switzerland and Canada face rates of 35% to 50%. Though, Taiwan and South Korea are breathing sighs of relief following exemptions from 100% chip import levies. * Expectations for Federal Reserve easing as soon as next month were buoyed again as two regional Fed chiefs - Minneapolis Fed boss Neel Kashkari and San Francisco's Mary Daly - indicated more rate cuts were coming this year. President Donald Trump said on Wednesday he would likely appoint a temporary replacement to Adriana Kugler's vacant Fed board seat. Meanwhile, candidates to replace Chair Jerome Powell next year are likely down to three, including former Fed Governor Kevin Warsh and White House adviser Kevin Hassett. * Fed easing speculation knocked the dollar back to 10-day lows, with Treasury yields remaining close to the week's three-month lows despite another underwhelming 10-year auction overnight and a long bond sale later today. Sterling was slightly firmer against the dollar but down on the euro, as the BoE looks set to lower British rates by a quarter point to 4% later today. Make sure to check out today's column, where I argue that investors looking for the impact of Trump's tariffs are looking at the wrong earnings season. Today's Market Minute * President Donald Trump's higher tariff rates of 10% to 50% on dozens of trading partners kicked in on Thursday, testing his strategy for shrinking U.S. trade deficits without massive disruptions to global supply chains, higher inflation and stiff retaliation from trading partners. * Indian Prime Minister Narendra Modi said on Thursday he will not compromise the interests of the country's farmers even if he has to pay a heavy price, in his first comments after Trump's salvo of a 50% tariff on Indian goods. * Russian President Vladimir Putin and U.S. President Donald Trump will meet in the coming days, Kremlin aide Yuri Ushakov said on Thursday, in what would be the first summit between leaders of the two countries since 2021. * Markets' relatively speedy acceptance of higher tariffs and threats to institutional independence raises the question: What happened to the last 40 years of economic orthodoxy? ROI columnist Jamie McGeever asks whether the Washington Consensus has been broken. * The U.S.-EU trade deal has been heavily criticised as a capitulation by the bloc. But Panmure Liberum investment strategist Joachim Klement argues that the European Union is likely not only to suffer less than the U.S. but may even see its economy benefit from the new global tariff regime. Latest Donald Trump News | Top Headlines on Donald Trump | Reuters Discover the latest headlines on Donald Trump, including coverage of his second presidency, trade and tariff policies, legal developments and more. Chart of the day Trump said on Wednesday that the United States would impose a tariff of about 100% on imports of semiconductors but offered up a big exemption - it will not apply to companies that are manufacturing in the U.S. or have committed to do so. South Korea's top trade envoy said major chipmakers Samsung Electronics and SK Hynix would not be subject to the 100% levies. Taiwanese chip contract manufacturer TSMC was expected to be relatively unscathed as it has U.S. factories, so key customers such as Nvidia are unlikely to face increased tariff costs for U.S-made chips. Malaysia's trade minister Tengku Zafrul Aziz warned parliament his country would risk losing a major market in the United States. Today's events to watch * Bank of England policy decision and monetary policy report (7:00 AM EDT), with press conference from BoE Governor Andrew Bailey * U.S. weekly jobless claims (8:30 AM EDT), Q2 labor costs and productivity, June consumer credit (3:00 AM EDT); Mexico July inflation (8:00 AM EDT) * Mexico central bank policy decision (3:00 PM EDT) * Atlanta Federal Reserve President Raphael Bostic speaks * U.S. corporate earnings: Eli Lilly, Gilead, Zimmer Biomet, Warner Bros Discovery, Expedia, ConocoPhillips, Sempra, Constellation Energy, Alliant Energy, Evergy, Consolidated Edison, Motorola Solutions, Microchip Technology, GenDigital, Ralph Lauren, Monster Beverages, Block, GoDaddy, Live Nation, Wynn Resorts, Trade Desk, EOG, * U.S. Treasury auctions $25 billion of 30-year bonds Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. You can find ROI on the Reuters website, and you can follow us on LinkedIn and X. Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias. (by Mike Dolan; editing by Alex Richardson) 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
