Why the MAGA Chorus Is Piling on Powell
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Yahoo
18 minutes ago
- Yahoo
France Adds Support for Using Most-Potent Trade Tool on US
(Bloomberg) — A growing number of European Union member states want the bloc to activate its most powerful trade tool against the US should the two sides fail to reach an acceptable agreement by Aug. 1 and Donald Trump carries out his threat of 30% tariffs on the US's largest trading partner. The Dutch Intersection Is Coming to Save Your Life Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests LA Homelessness Drops for Second Year Manhattan, Chicago Murder Rates Drop in 2025, Officials Say A French-led charge to deploy the EU's so-called anti-coercion instrument is backed by more than half a dozen European capitals, according to people familiar with the matter. Several member states are more cautious, while others have yet to express a position, said the people, who spoke on condition of anonymity to discuss private deliberations. The issue was discussed at a meeting of trade ministers on Monday, the people said. Benjamin Haddad, France's minister for European affairs, said earlier this week that the response from Brussels should include the option of using the tool which gives officials broad powers to take retaliatory action against EU trading partners. Those measures could include new taxes on US tech giants, for instance, or targeted curbs on US investments in the EU. They could also involve limiting access to certain parts of the EU market or restricting US firms from bidding for public contracts in Europe. The first-ever use of the ACI would likely provoke an even wider transatlantic trade war, given Trump's warnings that retaliation against American interests will only invite tougher tactics from his administration. 'In this negotiation, you need to show strength, you need to show force, unity and resolve,' Haddad told Bloomberg Television on Monday. 'We can go further' than the countermeasures announced by the European Commission targeting almost €100 billion ($116 billion) worth of US trade, he said, referring to the ACI. The commission, which leads on trade matters on behalf of the bloc, has so far said use of the tool is premature as negotiations continue. Commission President Ursula von der Leyen told reporters on Sunday that 'the ACI is created for extraordinary situations' and 'we are not there yet.' The overwhelming preference among capitals and EU officials is to keep negotiations on track and find a negotiated outcome to the impasse, while maintaining the threat of retaliation with countermeasures that are proportional to the damage from US tariffs. EU trade chief Maros Sefcovic will travel to Washington for further talks with his US counterparts this week, according to commission spokesman Olof Gill. Talks between the US and EU have continued despite Trump threatening in a letter sent over the weekend to impose a 30% tariff on most of the bloc's exports starting next month, alongside existing 25% duties on cars and car parts, and 50% levies on steel and aluminum. EU Commissioner Michael McGrath told Bloomberg Radio on Wednesday that he expects a deal to be reached by Aug. 1, though Brussels was 'surprised and disappointed' to receive Trump's letter. 'These are challenging complex negotiations,' McGrath said. 'We remain focused as an EU on the substantive discussions.' On Tuesday, Trump — who is known for escalating his rhetoric when negotiations bog down — said that he was likely to impose tariffs on some pharmaceuticals as soon as next month. That could hit European drug companies particularly hard. Ongoing Talks Before the latest threats from Washington, EU officials were hopeful they were edging toward a preliminary framework agreement that would allow negotiations to continue beyond the deadline. Under the envisioned accord, the bloc would face a 10% levy on most exports, with limited exemptions for some industries such as aviation and medical devices. The anti-coercion tool was designed primarily as a deterrent, and if needed respond to deliberate coercive actions from third countries that use trade measures as a means to pressure the sovereign policy choices of the 27-nation bloc or individual member states. The instrument was enacted as part of the EU's effort to boost its trade defenses after the US imposed tariffs on the bloc's exports during the first Trump administration. Another factor was China's decision to place restrictions on Lithuanian goods after Taiwan opened a trade office in the Baltic nation. The commission can propose use of the tool but it is then for member states to determine whether there is a coercion case and if it should be deployed. Throughout the process the EU would seek to consult with the coercing party to find a resolution and may also collaborate with like-minded partners facing similar pressure. (Updates with trade chief's trip to Washington in ninth paragraph) Forget DOGE. Musk Is Suddenly All In on AI How Starbucks Is Engineering a Turnaround With Warm Vibes and Cold Foams How Hims Became the King of Knockoff Weight-Loss Drugs Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot The New Third Rail in Silicon Valley: Investing in Chinese AI ©2025 Bloomberg L.P. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Business Insider
20 minutes ago
- Business Insider
The Brazilian rival to Boeing and Airbus warned that Trump's planned 50% tariffs will hit it as hard as COVID-19
The CEO of Brazilian planemaker Embraer has warned that tariffs could be as damaging as the pandemic. Donald Trump has threatened a 50% levy on Brazilian exports from August 1, unhappy with criminal charges against former president Jair Bolsonaro, who is accused of trying to stage a coup. It would be a huge obstacle for the world's third-biggest planemaker. Around three-quarters of Embraer's business jets and nearly half of its regional airliners are delivered to US clients. "Given the relevance of this market, we estimate that if this [Trump's tariff plan] moves on at this magnitude, we will have an impact similar to that of COVID-19 in terms of the decline in the company's revenue," CEO Francisco Gomes Neto said, per Reuters. The firm's share price has fallen 8.5% in the past five days, but is still up more than 25% since the start of the year. Reuters reported that Gomes Neto also said that shipping Embraer's E175 jets, which play a major role in regional aviation, would become "unfeasible" with tariffs. He also reportedly emphasized that the tariffs would be damaging to the US as well, given that it supplies parts like engines and avionics. "It's a lose-lose situation," said the CEO. Tariffs have already caused problems for aviation's two dominant players: Boeing and Airbus. The American planemaker had to return some 737 Max jets from China when Chinese airlines declined to accept them after tariffs soared above 100% between the two countries. However, the two sides did reach a truce, and Boeing has resumed deliveries to China. Meanwhile, US airlines have been trying to find ways around Trump's 10% levy against the European Union. Ed Bastian, the CEO of Delta Air Lines, said on an April earnings call that the carrier would not pay tariffs and would instead defer aircraft deliveries. Instead, a Delta Airbus A350 left the planemaker's headquarters in Toulouse, France, and flew to Japan. So long as the jet is used exclusively for international flights, it may mean it never counts as being imported to the US. Most top players in the aviation industry oppose the threat of tariffs, as the industry relies on complex global supply chains. Some relief was found at last month's Paris Air Show, when Transportation Secretary Sean Duffy said he backed a return to a 1979 agreement for no tariffs in aviation. While the UK won tariff exemptions for aircraft parts and Rolls-Royce engines later in June, it is unclear whether similar exemptions will be made available for everyone.
Forbes
20 minutes ago
- Forbes
‘Imminent' Fed Nightmare Is Suddenly Coming True As The Bitcoin Price Soars
07/16 update below. This post was originally published on July 15 Bitcoin has rocketed over the last week, hitting an all-time high of $123,000 per bitcoin as traders brace for a "10x" shock. Front-run Donald Trump, the White House and Wall Street by subscribing now to Forbes' CryptoAsset & Blockchain Advisor where you can 'uncover blockchain blockbusters poised for 1,000% plus gains!' The bitcoin price is up around 60% from its April lows, helped by U.S. president Donald Trump's support of bitcoin and crypto even as the Federal Reserve keeps interest rates on hold. Now, as traders bet Fed interest rate cuts could boost the bitcoin price, Trump is threatening to create a Federal Reserve independence nightmare for markets. Sign up now for the free CryptoCodex—A daily five-minute newsletter for traders, investors and the crypto-curious that will get you up to date and keep you ahead of the bitcoin and crypto market bull run US Federal Reserve chair Jerome Powell has held interest rates steady—something some think may be ... More holding back the bitcoin price rally—and creating a nightmare that threatens the bank's independence. Federal Reserve chair Jerome Powell is under fresh pressure from the White House and U.S. president Donald Trump whose continued attacks on Powell over interest rates have raised the possibility of "regime change" at the Fed. 07/16 update: U.S. congresswoman Anna Paulina Luna, who does not sit on the committee overseeing the Federal Reserve, has posted to X that Fed chair Jerome Powell's firing is "imminent," spiking bets on Polymarket that U.S. president Donald Trump will "remove" Powell this year. "Jerome Powell is going to be fired. Firing is imminent," Luna posted without evidence, stoking fears of an independence crisis at the Fed as Trump's attacks on Powell drive calls for 'regime change.' Last week, Trump said he wasn't planning to remove Powell, despite reports that the Trump administration is investigating the Fed's $2.5 billion renovation project as a possible route to forcing Powell to step down. Meanwhile, JPMorgan chief executive Jamie Dimon has called Fed independence "critical" during an analyst call, with Treasury secretary Scott Bessent saying in a Bloomberg interview that Fed independence is "very important." The Trump administration is now investigating the Fed's $2.5 billion renovation project as a possible route to forcing Powell to step down or as a reason for Trump to fire him, with Axios reporting Powell has asked the central bank's inspector general to review the project that's led to questions he may have misled Congress in his testimony regarding the renovation. Trump has raised the possibility he could remove Powell before his term is up next year, though no one is quite sure if he has the authority to do so. National Economic Council director Kevin Hasset told ABC News the president's possible power to fire Jerome Powell is 'being looked into ... but certainly if there's cause, he does.' "Frankly, it's about breaking some heads," former Fed governor Kevin Warsh, one of the front-runners to be named as Powell's replacement, told Fox News, adding the Fed "has lost its way" and said it was time for 'regime change.' The odds on Trump "removing" Powell on the crypto-powered PolyMarket prediction platform have climbed in recent weeks from lows of under 10% in June to over 20% this week. Many of the most bullish bitcoin traders and investors have predicted the bitcoin price will climb at a faster rate if or when the Fed does begin to lower interest rates, something that encourages cash to flow more quickly through the economy. "Recent indications from president Trump that he will name a replacement for Fed chair Powell early (by October, before Powell's current term expires in May) are one such driver," Geoff Kendrick, head of digital assets research at Standard Chartered Bank, said in an emailed note. "This would likely cause markets to price in more Fed rate cuts sooner and also increase investor concerns about Fed independence–both of which are positive for term premium." The new Fed chair, appointed by Trump either this year or once Powell's term ends in 2026, is widely expected to be supportive of lower interest rates. The bitcoin price has repeatedly hit fresh all-time highs through 2025, silencing those who claimed its historical 13-year run to 2022 was the result of the global zero interest rate policy (ZIRP) that followed the 2008 financial crisis. Sign up now for CryptoCodex—A free, daily newsletter for the crypto-curious The bitcoin price has rocketed higher, hitting a fresh all-time high in recent months. The Fed kept interest rates on hold again last month after kicking off a reduction cycle in September that's been put on pause due to fears Trump's global trade tariffs could see a return of inflation—with critics pointing to the pre-election reduction and post-election pause as evidence of political bias. For his part, Powell has said the expected increase in inflation as a result of Trump's so-called Liberation Day of global trade tariffs is a good reason to take a 'wait-and-see' approach to adjusting interest rates, with the market all but certain the Fed will hold rates steady again later this month. In June, Trump renewed his attack on Powell as U.S. debt topped $37 trillion. "I don't know why the board doesn't override (Powell)," Trump posted to his Truth Social account in a lengthy message in which he branded Powell a 'moron" and heavily criticized Fed policy that he claims is costing the U.S. $1 trillion per year in interest payments. "Maybe, just maybe, I'll have to change my mind about firing him? But regardless, his term ends shortly."
