Cleveland-Cliffs CEO welcomes Nippon Steel-U.S. Steel deal after opposing it
AZUSA KAWAKAMI
NEW YORK -- The head of American steelmaker Cleveland-Cliffs, one of the biggest critics of Nippon Steel's takeover of U.S. Steel, on Monday said the deal highlights the American market's strength.
Cleveland-Cliffs CEO Lourenco Goncalves' new comments, made on an April-June earnings call, were his first about the purchase since its completion last month.
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The Diplomat
3 hours ago
- The Diplomat
What's the Deal With Trump's Trade Agreements in Southeast Asia?
The United States recently announced it had struck trade deals with Indonesia, Vietnam, and the Philippines, which would allow those countries to avoid the punitively high tariffs President Donald Trump was threatening to enact. Much of this information is coming from Donald Trump's social media account, so we should be clear that none of this is legally binding and many important details are missing. In fact, many of the countries on the other side of these deals quickly made it known they viewed things a bit differently than President Trump. Vietnam is a case in point. In early July, Trump wrote on Truth Social (a social media platform that he also owns) that Vietnamese exports to the United States would be subject to a 20 percent tariff. In exchange, Vietnam would do 'something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade.' Similar deals with the Philippines and Indonesia were announced shortly thereafter, also on Truth Social and using similar language. But Vietnam has so far not acknowledged that this deal exists or that they agreed to it. According to Politico, Vietnamese negotiators believed they were agreeing to an 11 percent tariff on exports when Trump suddenly 'disregarded that figure in his phone call with Vietnamese General Secretary Lâm – who had not been part of the initial tariff negotiations – and instead declared the U.S. would impose a tariff nearly twice as high.' Something similar happened with the Philippines. During a recent visit to the United States, President Ferdinand Marcos Jr. and Trump reached the basic terms of an agreement. According to Trump, this would involve a 19 percent tariff on exports from the Philippines to the United States. The Philippines, much like Vietnam, would then go 'OPEN MARKET with the United States, and ZERO Tariffs.' Marcos quickly clarified that details were still being worked out, and that the zero tariffs were understood to apply only to American automobile imports to the Philippines, not all imports. Indonesia also agreed to a 19 percent tariff rate on exports to the United States, while committing to buy airplanes, soybeans, and energy from the United States. Again, this deal was struck after a direct conversation between Trump and Indonesian President Prabowo Subianto. Somewhat surprisingly, the U.S. and Indonesia issued a joint statement confirming some of the terms, although I would again note that none of this is legally binding and the details are still being worked on. Nevertheless, like the Philippines, they seem to have accepted the base tariff rate of 19 percent. How can we make sense of all this? Well, back in April when the first round of tariffs were announced, I wrote the following: 'The U.S. will probably try to secure some concessions from each country, then lower the tariff and champion it as evidence of Trump's deal-making prowess.' I think this is precisely what we are now seeing. The Philippines and Indonesia appear willing to make some concessions so Trump can feel like he got a win, including accepting a nominal tariff rate of 19 percent. Why would they do this? One reason is that the U.S. is not a huge export market for either country. As I noted last week, the U.S. accounted for about 8 percent of Indonesia's exports in 2023. Indonesia already purchases a significant number of Boeing aircraft and soybeans, so they aren't giving away anything major by committing to buy more of these items. For the Philippines, it's about the same, with only around $11 billion in exports to the U.S. in 2023. Neither country is particularly export-dependent, and in fact, they often run deficits in the balance of trade, meaning they import more than they export. Nobody wants to be hit with a 19 percent tariff, but if you are forced to deal with an antagonist trade partner with the size and power of the United States, there is a logic to making some concessions in the interest of preserving the relationship, especially if you suspect the terms may change again in the future anyway. Vietnam, it appears, is less willing to make similar concessions. Why? Again, the answer is in the trade data. Vietnam's economy is heavily export-dependent, with about $400 billion worth of exports in 2023, when you include services. Nearly a quarter of that went to the U.S. market. That means the difference between 11 and 20 percent is significant, and Vietnam may be less willing to make such concessions simply to stay in Trump's good graces. A country like the United States has considerable geopolitical, economic, and diplomatic leverage that it can wield to achieve a variety of objectives. That it is choosing to wield it in this way is unfortunate, and will almost certainly drive countries in the region away from America and toward other trade and development partners in Europe, the Middle East, and elsewhere.
Asahi Shimbun
4 hours ago
- Asahi Shimbun
U.S.-China tariff talks may provide clues on a possible Trump-Xi meeting
Chinese vice prime minister He Lifeng, center, waves as he arrives at Rosenbad before trade talks between the U.S. and China in Stockholm, Sweden, July 28, 2025. (TT News Agency via AP) STOCKHOLM--Top trade officials from China and the United States launched a new round of talks on Monday in a bid to ease tensions over tariffs between the world's two biggest national economies. U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng were meeting at the offices of Sweden's prime minister for two days of talks, which Bessent has said will likely lead to an extension of current tariff levels. But other possible outcomes will be scrutinized by markets and businesses for signs of a rapprochement, after brinkmanship earlier this year. Analysts say the talks could set the stage for a possible meeting between U.S. President Donald Trump and Chinese President Xi Jinping later this year. Other issues on the agenda include access of American businesses to the Chinese market; Chinese investment in the U.S.; components of fentanyl made in China that reach U.S. consumers; Chinese purchases of Russian and Iranian oil; and American steps to limit exports of Western technology — like chips that help power artificial intelligence systems. The talks ended for the day after nearly five hours on Monday and were set to reconvene on Tuesday morning. Wendy Cutler, a former U.S. trade negotiator and now vice president at the Asia Society Policy Institute, said that Trump's team would face challenges from 'a large and confident partner that is more than willing to retaliate against U.S. interests.' Rollover of tariff rates 'should be the easy part,' she said, warning that Beijing has learned lessons since the first Trump administration and 'will not buy into a one-sided deal this time around.' 'Beijing is more prepared and will insist on movement on U.S. tech export controls at a minimum — a difficult ask for Washington,' she said, adding that many conversations will take place in the lead-up to any Xi-Trump summit. 'Success is far from guaranteed,' Cutler said. 'There are numerous trip wires that can throw a wrench in this preparatory process.' The U.S.-China trade talks are the third this year, nearly four months after Trump upended global trade with his sweeping tariff proposals, including an import tax that shot up to 145% on Chinese goods. China retaliated with tariffs reaching 125% against U.S. goods, sending global financial markets into a temporary tailspin. The Stockholm meeting, following similar talks in Geneva and London, is set to extend a 90-day pause on those tariffs. During the hiatus, U.S. tariffs have been lowered to 30% on Chinese goods, and China set a 10% tariff on U.S. products. The Trump administration, which just completed a deal on tariffs with the European Union, wants to reduce a trade deficit of $904 billion overall last year, including a nearly $300 billion trade deficit with China. China's Commerce Ministry said last week that the 'consultations' would raise shared concerns through the principles of 'mutual respect, peaceful coexistence and win-win cooperation.' The talks with Beijing are part of a flurry of U.S. trade negotiations set off by Trump's arm-twisting 'Liberation Day' tariffs against dozens of countries. Since then, some talks have borne fruit in reaching deals. Others have not. Without an extension by Aug. 12, the tit-for-tat U.S.-China tariffs could snap back to the triple-digit levels seen before the 90-day pause reached in Geneva. Many other countries — including some developing ones that depend on exports to the U.S. — face a deadline of Friday, as the Trump administration has said that letters will go out beforehand with set rates. Critics say Trump's tariffs penalize Americans by forcing U.S. importers to shoulder the costs or pass them on to consumers through higher prices. On Friday, Trump told reporters that 'we have the confines of a deal with China' — just two days after Bessent told MSNBC that a 'status quo' had been reached between the two sides. While the Chinese side has offered little guidance about the specifics of its aims in Stockholm, Bessent has suggested that the situation has stabilized to the point that China and the U.S. can start looking toward longer-term balance between their economies. For years, since China vaulted into the global trading system about two decades ago, the United States has sought to press leaders in Beijing to encourage more consumption in China and wrest greater market access to foreign-made — including American — goods. Other sticking points in the relationship include overcapacity in China — by far the world's largest manufacturer — and concerns about whether Beijing is doing enough to control chemicals used to make fentanyl, analysts say. In Stockholm, the Chinese will likely demand the removal of a 20% fentanyl-related tariff that Trump imposed earlier this year, said Sun Yun, director of the China program at the Washington-based Stimson Center. Experts say long-term progress in the U.S.-China trade relationship will hinge on structural changes. Those include increased manufacturing in the United States, which is part of Trump's ambition. On the Chinese side, that could involve a reduction of excess Chinese production in many industries, including electric vehicles and steel, and increased Chinese consumer spending to ease imbalances in China's export-driven economy. Sean Stein, president of the U.S.-China Business Council, said the the talks in Stockholm offer an opportunity for the two governments to address structural reform issues. Businesses will watch for clues about a possible Trump-Xi summit, because any real deal will depend on a meeting between the pair, he said. A deal is possible because 'a lot of the things that the U.S. wants, the Chinese want as well,' Stein said. China, for example, is interested in buying U.S. soybeans and aircraft and parts, and Chinese businesses are interested in investing in U.S. manufacturing — which would help meet Trump's goal of reindustrialization. Bessent has also said the Stockholm talks could address Chinese purchases of Russian and Iranian oil.
The Mainichi
8 hours ago
- The Mainichi
US-China tariff talks may provide clues on a possible Trump-Xi meeting
STOCKHOLM (AP) -- Top trade officials from China and the United States launched a new round of talks on Monday in a bid to ease tensions over tariffs between the world's two biggest national economies. U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng were meeting at the offices of Sweden's prime minister for two days of talks, which Bessent has said will likely lead to an extension of current tariff levels. But other possible outcomes will be scrutinized by markets and businesses for signs of a rapprochement, after brinkmanship earlier this year. Analysts say the talks could set the stage for a possible meeting between U.S. President Donald Trump and Chinese President Xi Jinping later this year. Other issues on the agenda include access of American businesses to the Chinese market; Chinese investment in the U.S.; components of fentanyl made in China that reach U.S. consumers; Chinese purchases of Russian and Iranian oil; and American steps to limit exports of Western technology -- like chips that help power artificial intelligence systems. The talks ended for the day after nearly five hours on Monday, and were set to reconvene on Tuesday morning. 'Large and confident partner' Wendy Cutler, a former U.S. trade negotiator and now vice president at the Asia Society Policy Institute, said that Trump's team would face challenges from "a large and confident partner that is more than willing to retaliate against U.S. interests." Rollover of tariff rates "should be the easy part," she said, warning that Beijing has learned lessons since the first Trump administration and "will not buy into a one-sided deal this time around." "Beijing is more prepared and will insist on movement on U.S. tech export controls at a minimum -- a difficult ask for Washington," she said, adding that many conversations will take place in the lead-up to any Xi-Trump summit. "Success is far from guaranteed," Cutler said. "There are numerous trip wires that can throw a wrench in this preparatory process." The U.S.-China trade talks are the third this year, nearly four months after Trump upended global trade with his sweeping tariff proposals, including an import tax that shot up to 145% on Chinese goods. China retaliated with tariffs reaching 125% against U.S. goods, sending global financial markets into a temporary tailspin. Extending a 90-day pause The Stockholm meeting, following similar talks in Geneva and London, is set to extend a 90-day pause on those tariffs. During the hiatus, U.S. tariffs have been lowered to 30% on Chinese goods, and China set a 10% tariff on U.S. products. The Trump administration, which just completed a deal on tariffs with the European Union, wants to reduce a trade deficit of $904 billion overall last year, including a nearly $300 billion trade deficit with China. China's Commerce Ministry said last week that the "consultations" would raise shared concerns through the principles of "mutual respect, peaceful coexistence and win-win cooperation." The talks with Beijing are part of a flurry of U.S. trade negotiations set off by Trump's arm-twisting "Liberation Day" tariffs against dozens of countries. Since then, some talks have borne fruit in reaching deals. Others have not. Without an extension by Aug. 12, the tit-for-tat U.S.-China tariffs could snap back to the triple-digit levels seen before the 90-day pause reached in Geneva. Many other countries -- including some developing ones that depend on exports to the U.S. -- face a deadline of Friday, as the Trump administration has said that letters will go out beforehand with set rates. Critics say Trump's tariffs penalize Americans by forcing U.S. importers to shoulder the costs or pass them on to consumers through higher prices. Suggestion of stability On Friday, Trump told reporters that "we have the confines of a deal with China" -- just two days after Bessent told MSNBC that a "status quo" had been reached between the two sides. While the Chinese side has offered little guidance about the specifics of its aims in Stockholm, Bessent has suggested that the situation has stabilized to the point that China and the U.S. can start looking toward longer-term balance between their economies. For years, since China vaulted into the global trading system about two decades ago, the United States has sought to press leaders in Beijing to encourage more consumption in China and wrest greater market access to foreign-made -- including American -- goods. Other sticking points in the relationship include overcapacity in China -- by far the world's largest manufacturer -- and concerns about whether Beijing is doing enough to control chemicals used to make fentanyl, analysts say. In Stockholm, the Chinese will likely demand the removal of a 20% fentanyl-related tariff that Trump imposed earlier this year, said Sun Yun, director of the China program at the Washington-based Stimson Center. Looking long-term Experts say long-term progress in the U.S.-China trade relationship will hinge on structural changes. Those include increased manufacturing in the United States, which is part of Trump's ambition. On the Chinese side, that could involve a reduction of excess Chinese production in many industries, including electric vehicles and steel, and increased Chinese consumer spending to ease imbalances in China's export-driven economy. Sean Stein, president of the U.S.-China Business Council, said the the talks in Stockholm offer an opportunity for the two governments to address structural reform issues. Businesses will watch for clues about a possible Trump-Xi summit, because any real deal will depend on a meeting between the pair, he said. A deal is possible because "a lot of the things that the U.S. wants, the Chinese want as well," Stein said. China, for example, is interested in buying U.S. soybeans, and aircraft and parts, and Chinese businesses are interested in investing in U.S. manufacturing -- which would help meet Trump's goal of reindustrialization. Bessent has also said the Stockholm talks could address Chinese purchases of Russian and Iranian oil.
