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Podcast: Renewed Trade Tensions Drive Down U.S. Stocks

Podcast: Renewed Trade Tensions Drive Down U.S. Stocks

Stocks' decline accelerates after President Trump announces 25% tariffs on goods from Japan and South Korea and threatens additional tariffs on countries building closer ties with Brics economies. Plus: Tesla shares fall after Elon Musk says he is forming a new political party.
🎧 Listen: Danny Lewis hosts the Minute Briefing podcast.
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From rice to digital services, here is what's making trade negotiations difficult for the Trump administration
From rice to digital services, here is what's making trade negotiations difficult for the Trump administration

Business Insider

time19 minutes ago

  • Business Insider

From rice to digital services, here is what's making trade negotiations difficult for the Trump administration

The 90-day tariff pause did not yield 90 announced trade deals. After giving 75 trading partners a three-month tariff pause and telling Time in an April interview that he "100%" has "made 200 deals," President Donald Trump came away with three trade deals, some tentative, as of mid-July. Months of negotiations with Japan, Korea, and Thailand have not yielded agreements. As Trump sends out a new round of tariff letters to over 20 countries, threatening some with tariffs as high as 50%, trade experts told Business Insider that many sticking points stand in the way of quick trade deals. Navin Girishankar, president of the Economic Security and Technology Department at the Center for Strategic and International Studies, told Business Insider that the Trump administration believes that unpredictability and ratcheting up tariffs give them leverage, but it remains questionable if that is effective. "I'm actually feeling that it's more and more the loss of leverage," said Girishankar. "Because the reason we're shifting timetables is because we're not able to get to the deals that we think are acceptable." Domestic politics throw a wrench in negotiations Multiple trading partners that Trump is negotiating with are dealing with elections and policies that are popular in their respective countries. Girishankar told BI that, for example, Korea has a draft of a digital platform bill that its legislators see as important to national security. But the issue is, Girishankar says, the bill would be considered a barrier to entry for US tech companies like Meta and Google if it passes. Trump has also been complaining on social media that Japan won't import rice from the US, while the US imports a large number of cars from the Asian country. Drew DeLong, lead in geopolitical dynamics practice at Kearney, a global strategy and management consulting firm, told BI that Japan has been under a lot of domestic pressure because it has an upper house election in late July. "Once that's finished," said DeLong, "It will be important to watch how PM Ishiba handles the Trump relationship with less domestic political pressure." Despite representing a relatively small part of the national GDP, the agriculture sector in Japan has cooperatives with significant lobbying power that have gained protectionist measures on staple crops like rice. "Agriculture has historically been a very challenging component of any trade agreement. Farmers are an important constituency in both countries," Girishankar added of the US and Japan. Ann Harrison, dean of the University of California, Berkeley's Haas School of Business, told BI that the Trump administration may have simply set itself up for "a herculean task." "Different countries have different sensitivities, like how it's the auto industry for Japan, and lumber and pharmaceuticals for Canada," said Harrison. "That's why any meaningful trade deals typically take three years and won't happen in such a short period of time." China complicates trade deals Though the tariff pause on China doesn't expire till mid-August, the manufacturing hub casts a long shadow. Harrison said the Trump administration needs to balance its need to reduce the trade deficit, without going so far that it would push Asian allies like Vietnam and the Philippines toward a closer alliance with China. "It's politically interesting that the US gave Vietnam and the Philippines some of the lower tariffs," said Harrison. "This is also becoming a militarily loaded decision as much as an economic one." In March, Defense Secretary Pete Hegseth met with Philippine President Ferdinand Marcos Jr. and said the two countries, which have been fighting "shoulder-to-shoulder" since World War II, will work toward "reestablishing military deterrence" in the Indo-Pacific region. DeLong also said that the transshipment issue — one country rerouting its goods through another country, potentially to evade higher tariffs — has also made a comeback in the agreement with Vietnam, mostly due to concerns that China would reroute shipments to the US through Southeast Asia. "Still unclear how this will work mechanically," said DeLong. "Higher RVC thresholds? Port of shipment tracking? Headquarters country of origin?" According to statistics from the General Administration of Customs in China, the total value of China's exports to Vietnam increased by at least 15% every month in 2025 compared to the same months in the previous year. Girishankar echoed the concerned that transshipment would be complicated to implement and define, though he understands what the administration is attempting to achieve. "Some countries are worried that literally any Chinese content can be considered a transshipment," said Girishankar. "Bilateral negotiations with countries are also being used as the main way of achieving a global rebalancing of trade deficits, which is really challenging."

Russia Sends North Korea's Nukes Signal to US Allies
Russia Sends North Korea's Nukes Signal to US Allies

Newsweek

time19 minutes ago

  • Newsweek

Russia Sends North Korea's Nukes Signal to US Allies

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Russia has backed North Korea's nuclear program and warned Washington not to team up with regional Asian allies against Moscow and Pyongyang, following military drills between the U.S., Japan and South Korea. During a visit to North Korea, Russian Foreign Minister Sergei Lavrov said Moscow "respects" Pyongyang's nuclear ambitions. He also said that Russia and North Korea have taken note of President Donald Trump's statements about Washington resuming contact with Pyongyang. Newsweek has contacted the Russian foreign ministry for comment. This image from January 20, 2022 shows a woman in Seoul, South Korea, walking past a news broadcast showing file footage of a North Korean missile test. This image from January 20, 2022 shows a woman in Seoul, South Korea, walking past a news broadcast showing file footage of a North Korean missile test. JUNG YEON-JE/Getty Images Why It Matters Lavrov's visit comes after after South Korea, Japan and the U.S. conducted a joint air drill with a U.S. B-52 strategic bomber and fighter jets over international waters. Lavrov's view are the latest signal of deepening ties between Russia and North Korea but also suggest that Pyongyang's atomic program is acting as a deterrent. His teasing of a resumption in contacts between Pyongyang and Washington is also significant. What To Know Lavrov started a three-day visit to North Korea by meeting his counterpart Choe Son Hui in the resort city of Wonsan on Saturday. The Russian foreign minister said Moscow respects and understands why Pyongyang is developing its nuclear program, which is the "work of its own scientists," according to state news agency Tass, suggesting Moscow was not collaborating with Pyongyang in this regard. Lavrov's comments about Pyongyang's program also referred to how North Korea had drawn "the necessary conclusions long before the Israeli and U.S. strikes on Iran." Trump ordered strikes on Iranian nuclear facilities in June to destroy Tehran's ability to make a nuclear weapon. Lavrov also warned the U.S. and its regional allies South Korea and Japan against teaming up to target Russia and North Korea. "No one is considering using force against North Korea despite the military buildup around the country by the United States, South Korea, and Japan," Lavrov said, following the military drills on Friday that were condemned by Pyongyang. Lavrov added that Trump had "expressed support for resuming contacts with North Korea," according to Tass without offering any further details. What People Are Saying Russian Foreign Minister Sergey Lavrov: "We respect North Korea's aspirations and understand the reasons why it is pursuing a nuclear development." He added: "President Trump has expressed support for resuming contacts with North Korea, including at the highest level. We have heard this, and our Korean friends have also heard it." The head of Ukrainian military intelligence, Kyrylo Budanov told Bloomberg of Pyongyang's supplies of munitions to Moscow: "North Korea has huge stockpiles and production goes on around the clock." What Happens Next Lavrov's visit comes weeks after Pyongyang agreed to send an additional 6,000 personnel to Russia's Kursk region where thousands were deployed last year. His remarks signal that military co-operation between Moscow and Pyongyang is likely to deepen. Head of Ukrainian military intelligence, Kyrylo Budanov told Bloomberg that North Korea is now supplying 40 percent of Russia's ammunition for the war against Ukraine.

£20,000 invested in a Stocks and Shares ISA 10 years ago could now be worth…
£20,000 invested in a Stocks and Shares ISA 10 years ago could now be worth…

Yahoo

time24 minutes ago

  • Yahoo

£20,000 invested in a Stocks and Shares ISA 10 years ago could now be worth…

Even with all the geopolitical, pandemic, and economic uncertainty we've endured in the last decade, the markets have still been pretty rewarding for Stocks and Shares ISA investors. In 2015, the total amount of money saved in ISAs sat at around £500bn. According to the latest data, it's now closer to £800bn. And while a good chunk comes from additional contributions, the bulk's courtesy of strong stock market performance. So just how much money have ISA investors made since 2015? Everyone has a different portfolio. So the answer to the question – how much money have investors made – ultimately depends on which shares they bought. In most cases, index funds end up being the primary destination of invested capital. These passive instruments are cheap, automated and, most importantly, they've an impressive track record of steadily building long-term wealth. Here in the UK, the FTSE 100's by far the most popular index, and since 2015, it's delivered some solid gains. In fact, when including the extra returns from dividends, investors have reaped a 98.9% total return. That's the equivalent of a 7.1% average annual gain. And it means £20,000 in 2015's now worth £39,790. Those who opted for the FTSE 250 haven't been as fortunate. But their wealth has still moved in the right direction, expanding a £20,000 initial investment into £32,140. This deducted performance isn't entirely surprising given the increased exposure to the British economy, which has notoriously lagged in terms of growth. Investors who are more confident and willing to take on more risk go beyond index funds and invest in individual shares directly. This can either be incredibly rewarding or backfire spectacularly if bad investment decisions are made. It all depends on how wisely an investor approaches the markets. Those who focused on long-term hidden quality may have stumbled upon businesses like Computacenter (LSE:CCC). In a world of digitalisation, Computacenter positioned itself to be the go-to reseller for the private and public sectors of IT hardware. And as demand for automation, networking, and cybersecurity has continued to build, revenue over the 10-year period has more than doubled to £6.9bn while earnings have more than tripled. For shareholders, that's translated into a total investment return of over 200% transforming a £20,000 ISA into £60,590. Of course, there have been plenty of other UK shares that delivered far weaker returns, such as ITV and Currys, which are down a staggering 70% over the same period, leaving investors with just £6,000. Demand for Computacenter's services hasn't waned in 2025, with a record order backlog and an impressive growth outlook. With that in mind, I think investors could be well served to take a closer look. But of course, there are risks to watch out for. Macroeconomic uncertainty and global instability in trade can and have resulted in IT spending cuts in certain sectors. And a prolonged cyclical downturn could undercut the firm's current growth trajectory. This may prove to be only a short-term issue. The group's reputation for excellence is now well known so its shares trade at a premium. And that can invite unwanted volatility should spanners start getting thrown into the works. The post £20,000 invested in a Stocks and Shares ISA 10 years ago could now be worth… appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended Computacenter Plc and ITV. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 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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