World's largest copper producer says Trump's tariffs are causing ‘anxiety'
President Donald Trump this month said he would impose a 50 per cent tariff on copper from August 1 but did not clarify if this would apply to the refined metal, semi-finished products or copper ore. Miners and industrial users have questions over the timing and nature of the tariffs.
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News.com.au
5 hours ago
- News.com.au
Trump, EU chief seek deal in transatlantic tariffs standoff
US President Donald Trump and EU chief Ursula von der Leyen prepared to meet Sunday in Scotland in a push to resolve a months-long transatlantic trade standoff that is going down to the wire. Trump has said he sees a 50-50 chance of reaching a deal with the European Union, having vowed to hit dozens of countries with punitive tariffs unless they hammer out a pact with Washington by August 1. The EU is currently facing the threat of an across-the-board levy of 30 percent from that date. Von der Leyen's European Commission, negotiating on behalf of the EU's member countries, has been pushing hard for a deal to salvage a trading relationship worth an annual $1.9 trillion in goods and services. Any deal with the United States will need approval by all 27 member states. EU ambassadors, on a visit to Greenland, were to meet Sunday morning to discuss the latest negotiations -- and again after any accord. Sunday's sit-down between Trump and the EU chief was to take place at 4:30 pm (1530 GMT) in Turnberry, on Scotland's southwestern coast, where Trump owns a luxury golf resort. The 79-year-old American leader said Friday he hoped to strike "the biggest deal of them all" with the EU. "I think we have a good 50-50 chance" of a deal, the president said, citing sticking points on "maybe 20 different things". He praised von der Leyen as "a highly respected woman" -- a far cry from his erstwhile hostility in accusing the EU of existing to "screw" the United States. But late-night EU talks with US Commerce Secretary Howard Lutnick on Saturday to hammer out the final details were "combative at times," The Financial Times reported. As of Saturday evening, there were "still quite a few open questions" -- notably on pharmaceutical sector tariffs, said one EU diplomat. Tariff levels on the auto sector were also crucial for the Europeans -- notably France and Germany -- and the EU has been pushing for a compromise on steel that could allow a certain quota into the United States before tariffs would apply. - Baseline 15 percent - According to European diplomats, the deal on the table involves a baseline levy of around 15 percent on EU exports to the United States -- the level secured by Japan -- with carve-outs for critical sectors including aircraft, lumber and spirits excluding wine. The EU would commit to ramp up purchases of US liquefied natural gas, along with a series of investment pledges. Hit by multiple waves of tariffs since Trump reclaimed the White House, the EU is currently subject to a 25-percent levy on cars, 50 percent on steel and aluminium, and an across-the-board tariff of 10 percent, which Washington threatens to hike to 30 percent in a no-deal scenario. The EU has focused on getting a deal with Washington to avoid sweeping tariffs that would further harm its sluggish economy, with retaliation as a last resort. While 15 percent would be much higher than pre-existing US tariffs on European goods -- at 4.8 percent -- it would mirror the status quo, with companies already facing an additional flat rate of 10 percent. Should talks fail, EU states have greenlit counter tariffs on $109 billion (93 billion euros) of US goods including aircraft and cars to take effect in stages from August 7. Brussels is also drawing up a list of US services to potentially target. Beyond that, countries like France say Brussels should not be afraid to deploy a so-called trade "bazooka" -- EU legislation designed to counter coercion through trade measures which involves restricting access to its market and public contracts. But such a step would mark a major escalation with Washington. - Ratings dropping - Trump has embarked since returning to power on a campaign to reshape US trade with the world. But polls suggest the American public is unconvinced, with a recent Gallup survey showing his approval rating at 37 percent -- down 10 points from January. Having promised "90 deals in 90 days," Trump's administration has so far unveiled five, including with Britain, Japan and the Philippines. Early Sunday, ahead of his meeting with Von der Leyen, Trump was out again on the golf course, having spent most of Saturday playing at Turnberry amid tight security. The trip to Scotland has put physical distance between Trump and the scandal around Jeffrey Epstein, the wealthy financier accused of sex trafficking who died in prison in 2019 before facing trial. In his heyday, Epstein was friends with Trump and others in the New York jet-set, but the president is facing backlash from his own MAGA supporters demanding access to the Epstein case files. With the uproar refusing to die down, a headline agreement with the EU -- in addition to bolstering Trump's dealmaker credentials -- could bring a welcome distraction.
News.com.au
14 hours ago
- News.com.au
US Fed poised to hold off on rate cuts, defying Trump pressure
The US central bank is widely expected to hold off slashing interest rates again at its upcoming meeting, as officials gather under the cloud of an intensifying pressure campaign by President Donald Trump. Policymakers at the independent Federal Reserve have kept the benchmark lending rate steady since the start of the year as they monitor how Trump's sweeping tariffs are impacting the world's biggest economy. With Trump's on-again, off-again tariff approach -- and the levies' lagged effects on inflation -- Fed officials want to see economic data from this summer to gauge how prices are being affected. When mulling changes to interest rates, the central bank -- which meets on Tuesday and Wednesday -- seeks a balance between reining in inflation and the health of the jobs market. But the bank's data-dependent approach has enraged the Republican president, who has repeatedly criticized Fed Chair Jerome Powell for not slashing rates further, calling him a "numbskull" and "moron." Most recently, Trump signaled he could use the Fed's $2.5 billion renovation project as an avenue to oust Powell, before backing off and saying that would be unlikely. Trump visited the Fed construction site on Thursday, making a tense appearance with Powell in which the Fed chair disputed Trump's characterization of the total cost of the refurbishment in front of the cameras. But economists expect the Fed to look past the political pressure at its policy meeting. "We're just now beginning to see the evidence of tariffs' impact on inflation," said Ryan Sweet, chief US economist at Oxford Economics. "We're going to see it (too) in July and August, and we think that's going to give the Fed reason to remain on the sidelines," he told AFP. - 'Trial balloon' - Since returning to the presidency in January, Trump has imposed a 10 percent tariff on goods from almost all countries, as well as steeper rates on steel, aluminum and autos. The effect on inflation has so far been limited, prompting the US leader to use this as grounds for calling for interest rates to be lowered by three percentage points. Currently, the benchmark lending rate stands at a range between 4.25 percent and 4.50 percent. Trump also argues that lower rates would save the government money on interest payments, and floated the idea of firing Powell. The comments roiled financial markets. "Powell can see that the administration floated this trial balloon" of ousting him before walking it back on the market's reaction, Sweet said. "It showed that markets value an independent central bank," the Oxford Economics analyst added, anticipating Powell will be instead more influenced by labor market concerns. Powell's term as Fed chair ends in May 2026. - Jobs market 'fissures' - Analysts expect to see a couple of members break ranks if the Fed's rate-setting committee decides for a fifth straight meeting to keep interest rates unchanged. Sweet cautioned that some observers may spin dissents as pushback on Powell but argued this is not necessarily the case. "It's not out-of-line or unusual to see, at times when there's a high degree of uncertainty, or maybe a turning point in policy, that you get one or two people dissenting," said Nationwide chief economist Kathy Bostjancic. Fed Governor Christopher Waller and Vice Chair for Supervision Michelle Bowman have both signaled openness to rate cuts as early as July, meaning their disagreement with a decision to hold rates steady would not surprise markets. Bostjancic said that too many dissents could be "eyebrow-raising," and lead some to question if Powell is losing control of the board, but added: "I don't anticipate that to be the case." For Sweet, "the big wild card is the labor market." There has been weakness in the private sector, while the hiring rate has been below average and the number of permanent job losers is rising. "There are some fissures in the labor market, but they haven't turned into fault lines yet," Sweet said. If the labor market suddenly weakened, he said he would expect the Fed to start cutting interest rates sooner.
Sky News AU
17 hours ago
- Sky News AU
Anthony Albanese and Don Farrell contradict each other if Donald Trump raised the matter of Australia's beef biosecurity rules during tariff negotiations
Prime Minister Anthony Albanese and Trade Minister Don Farrell have got themselves in knots after giving conflicting answers if President Donald Trump raised the matter of Australian biosecurity rules on US beef during tariff talks. The Australian Financial Review revealed on Thursday that Australian officials had notified their US counterparts that restrictions on the importation of US beef would be lifted following a scientific review of the biosecurity risks. Following the decision the government was urged by the Coalition to explain its backflip on the US beef ban after the Prime Minister previously insisted Labor would not 'compromise' on biosecurity. Responding to the reports on Thursday, Nationals Senate Leader Bridget McKenzie said the decision could pose a risk to our beef industry with Nationals leader David Littleproud also questioning the timing of the decision. Speaking to Sky News on Sunday Agenda Trade Minister Don Farrell squatted away assertions that the decision was made to appease the US President, and insisted Australia had the strictest biosecurity laws in the world. 'These are decisions that are made by the Department of Agriculture, they do their scientific research and we've gone through a ten-year process,' Mr Farrell told Sky News host Andrew Clennell. When pressed directly if the two things had nothing to do each other Mr Farrell bluntly said 'yes, that's exactly what I'm saying, we don't make decisions about our biosecurity issued based on the requests from Presidents of other countries.' Senator Farrell also acknowledged that the 'President of the United States had raised it with the Prime Minister.' However, in a major contradiction Mr Albanese said on the ABC's Insiders program that the US President had not directly raised the issue of Australian biosecurity rules on US beef. "Did Donald Trump raise this with you directly?' Mr Albanese was asked by host David Speers, to which he responded with a curt 'no.' 'Donald Trump did raise it at the so-called Liberation Day, of course, he raised it publicly,' Mr Albanese said. Mr Albanese insisted the decision was not 'a political decision' and that the course of action had not been made due to political pressure from the US administration. Mr Farrell also revealed that he had no hand in the decision, and that the call was made by the Department of Agriculture and Agriculture Minister Julie Collins who cut her press conference short on Thursday when taking questions on the matter. 'I don't sign off on it, these are agriculture issues, they have an impact with trade as we have a trading relationship with the US, but this is an independent process, the department of agriculture undertakes, they make decisions on all of the scientific decisions on a biosecurity basis.' The restrictions had been cited by President Donald Trump as a justification for his decision to impose a 10 per cent across the board tariff on Australian imports as well as much larger tariffs on steel and aluminium. On Friday the US President greeted the news of a change in the ban on US beef being imported into the country remarking 'we are going to sell so much to Australia.' As the deadline for trade deals with the US looms, Mr Farrell said the government was 'going to try' to secure a new trade agreement with the Trump administration and that the tariffs themselves were 'an act of economic self-harm.' A raft of Coalition figures including Bridget McKenzie, David Littleproud, Barnaby Joyce, Michaelia Cash and James Paterson have all called on the government to explain its sudden policy reversal on the matter.
