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Yahoo
an hour ago
- Yahoo
Trump tariffs live updates: Bessent says Trump tariffs top $300B, funds to cut federal debt
US Treasury Secretary Scott Bessent told CNBC he expects tariff revenues under President Trump to exceed his earlier $300 billion estimate, with the money going to pay down the federal debt rather than rebate checks for Americans. "I've been saying that tariff revenue could be $300 billion this year. I'm going to have to revise that up substantially," Bessent said. "We're going to bring down the deficit to GDP. We'll start paying down the debt, and then at that point that can be used as an offset to the American people." In other news, The S&P Global Ratings affirmed the US's AA+ long-term credit rating with a stable outlook on Monday, saying tariff revenues will help offset the fiscal blow from President Trump's recent tax and spending bill. The agency's view comes despite Trump's sweeping tariffs, which have rattled markets and strained trade ties. Meanwhile, Brazil submitted its formal response to a US trade investigation, rejecting the allegations while challenging the probe's legitimacy. The investigation, launched in July under Section 301 of the 1974 Trade Act, will examine whether Brazil's digital trade and tariff policies unfairly harm US businesses, US Trade Representative Jamieson Greer said. Brazil's finance minister Fernando Haddad said the country has hit an impasse with the US over tariffs, adding that resolving the dispute will depend on Washington's willingness to engage. Earlier this month, Trump unveiled "reciprocal" tariffs on dozens of US trade partners (which you can see in the graphic below). The next negotiations to watch are Canada, Mexico, and China in the coming months. Read more: What Trump's tariffs mean for the economy and your wallet Here are the latest updates as the policy reverberates around the world. US-EU trade deal not far from ECB's baseline forecast: Lagarde Reuters reports: Read more here. Bessent says US tariff revenues to rise 'substantially,' focus on reducing debt US Treasury Secretary Scott Bessent has said he expects to see a big jump in revenues due to tariffs imposed my President Trump. Bessent said the money would be used to start paying down the federal debt and not to give rebates back to Americans. Bessent, who spoke in an interview on CNBC,said he expected to revise his earlier estimate of $300 billion in revenues from tariffs, but declined to be specific on what he thought the new amount would be. Reuters reports; Read more here. US copper firms hike prices even after Trump tariff reprieve Copper prices (HG=F) declined 1% on Tuesday, but analysts cautioned that consumers could still see higher costs for wire and cable as firms have more pricing power amid a new tariff environment. Bloomberg reports: Read more here. Trump widens metal tariffs to target baby gear and motorcycles President Trump surprised the logistics industry on Friday by expanding steel and aluminum tariffs to over 400 consumer goods, including motorcycles, baby products and tableware. US customs brokers and importers failed to get much notice and the changes took effect Monday, applying to goods already in transit. Bloomberg News reports: Read more here. Trump cracks down on Latin American countries with military action and tariffs In the next 36 hours President Trump will send three Aegis guided-missile destroyers to waters off Venezuela to address what Washington sees as a threat from drug cartels. The news, which was reported in Reuters, shows how the Trump administration are willing to use military force against Latin American drug cartels. Trump has placed pressure on Mexico to crack down on criminal organizations and end fentanyl trafficking. Another method that Trump is using is steep tariffs on goods. Bloomberg News reports: Read more here. Trump tariffs get seal of approval as S&P affirms credit rating S&P Global Ratings on Monday affirmed the US's AA+ long-term rating with a stable outlook, saying tariff revenues will help offset costs from President Trump's recent tax and spending bill. Bloomberg News reports: Read more here. Brazil challenges legitimacy of US trade probe, urges dialogue Brazil has rejected a US trade investigation launched in July under section 301 of the Trade Act of 1974, which seeks to determine whether its trade and tariff policies unfairly restrict American businesses. In a formal response submitted Monday, Brazil dismissed the allegations and challenged the legitimacy of the probe. Reuters reports: Read more here. Brazil deadlocked with US over 50% tariffs, finance minister says The Financial Times reports: Read more here. Nissan's Infiniti attempts 'product renaissance' to jump-start sales and blunt tariffs Nissan's (NSANY) Infiniti brand just unveiled its latest creation, the QX65 midsize crossover SUV, at Monterey Car Week. The launch is part of a product renaissance at the Japanese automaker, which has been plagued with other headaches, such as tariffs. Yahoo Finance's Pras Subramanian reports from Carmel, Calif., that the QX65 will be built in the US, which Infiniti's US head, Tiago Castro, said was 'very important' to increase its US footprint. While Japan has a preliminary deal in place for 15% tariffs, cars imported from Canada and Mexico still have a 25% auto sector tariff tacked on. Signing a tariff deal with Japan is immensely helpful, as the QX80 SUV that's in demand is built in Japan. 'The customers are reacting very well, and we need to deliver the vehicle' and not stop, Castro said. Read more here. Germany says written EU-US trade deal requires lower car duties Germany said on Monday the US must first implement the agreed lower tariffs on European-made cars before a broader trade deal can be finalized. Reuters reports: Read more here. Fewer fake firs, higher prices: China tariff delay does little to save the holidays The holiday season is fast approaching and US shoppers will now face fewer choices for fake Christmas trees and decorations. The price of these items has also gone up due to tariffs on Chinese imports as retailers scale back orders. Reuters reports: Read more here. China ramps up rare earth exports after fright for global buyers Bloomberg News reports: Read more here. EU push to protect digital rules holds up trade statement with US The EU is pushing back against US efforts to challenge its digital rules as both sides work to finalize a delayed trade statement, the FT reported. Disputes over "non-tariff barriers," which Washington says include the EU's Digital Services Act, have stalled the announcement. The statement was expected soon after European Commission president Ursula von der Leyen and President Trump unveiled a tariff deal in Scotland on July 27. EU officials said the US wants room for concession on the act, but Brussels has called the rules a red line. The FT reports: Read more here. US adviser Navarro says India's Russian crude buying must stop Reuters reports: Read more here. US trade partners still waiting on Trump to seal their 'deals' US trade partners that worked out exemptions to President Trump's tariffs — like the UK's deal to reduce tariffs on its steel to zero — are still waiting for the agreements to be finalized months later, Bloomberg reports, and are growing frustrated. Read more here. Candidates at Iowa State Fair hear from voters about Trump tariffs (Bloomberg) — Republican Representative Zach Nunn is making an Iowa State Fair video about President Donald Trump's tax law, shot on a John Deere tractor under the blazing August sun. In it, Nunn, one of the nation's most vulnerable incumbents, talks to constituent Sarah Curry about how the expanded child tax credit will help with the cost of one child's speech therapy. Nunn is also planning to use the state fair as the backdrop for more videos selling the bill's provisions temporarily cutting taxes on tips and overtime. Economic issues — namely, Trump's tax package and his tariff war with countries that buy much of Iowa's agricultural products — will be front and center in Nunn's race, and he's eager to get a jumpstart defining the issues. So, too, are Democrats, who see Iowa's two swing districts as must-wins in their push to take back the House majority. Democrat Jennifer Konfrst, who is working to unseat Nunn, said she approaches Iowans at the fair asking them what keeps them up at night and the answer is usually 'costs.' Read more here. Tariffs' impact on Walmart, other retailers' earnings about to come into focus Several major retailers will report earnings this week, which may give a first glimpse into how President Trump's tariffs have affected their bottom lines. The list includes Walmart (WMT), Target (TGT), Home Depot (HD), Lowe's Companies (LOW) TJ Maxx parent TJX Companies (TJX) and Ross Stores (ROST). The Trump administration has urged retailers not to raise prices for consumers to offset the tariffs' impact, with a particular focus on Walmart, The Street reminds us: Read more here. Trump's trade war not likely to cause recession, Moody's economist says Economist Justin Begley of Moody's Analytics tells USA Today that President Trump's economic policies won't cause a recession or stagflation, but will likely slow growth and push up inflation. The economy isn't in stagflation yet, Begley said, "but it's edging that way," he adds: Read more here. Commerce department applies 50% steel, aluminum tariffs to more products (Reuters) -The Trump administration widened the reach of its 50% tariffs on steel and aluminum imports by adding hundreds of derivative products to the list of goods subject to the levies. In a Federal Register notice late on Friday, the Commerce Department said the Bureau of Industry and Security was adding 407 product codes to the Harmonized Tariff Schedule of the United States that identify the goods to be hit with the additional duties on the steel and aluminum content of those products. The non-steel and non-aluminum content will be subject to the tariff rates President Donald Trump has imposed on the goods originating from specific countries, the notice said. The levies on the goods on the expanded list go into effect on August 18. Read more here. Consumers' inflation expectations rise amid Trump tariffs Inflation expectations rose from July to August, indicating that consumers remain uncertain about President Trump's trade policies. Year-ahead inflation expectations increased to 4.9% from 4.5% last month, according to the University of Michigan's survey of consumers. Long-run inflation expectations also rose to 3.9% in August from 3.4% in July. "Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused," Joanne Hsu, the university's Surveys of Consumers director, wrote. "However, consumers continue to expect both inflation and unemployment to deteriorate in the future." Consumer sentiment also deteriorated month over month, falling for the first time in four months. The University of Michigan's Consumer Sentiment Index fell to 58.6 from 61.7 a month ago. Read more here. US-EU trade deal not far from ECB's baseline forecast: Lagarde Reuters reports: Read more here. Reuters reports: Read more here. Bessent says US tariff revenues to rise 'substantially,' focus on reducing debt US Treasury Secretary Scott Bessent has said he expects to see a big jump in revenues due to tariffs imposed my President Trump. Bessent said the money would be used to start paying down the federal debt and not to give rebates back to Americans. Bessent, who spoke in an interview on CNBC,said he expected to revise his earlier estimate of $300 billion in revenues from tariffs, but declined to be specific on what he thought the new amount would be. Reuters reports; Read more here. US Treasury Secretary Scott Bessent has said he expects to see a big jump in revenues due to tariffs imposed my President Trump. Bessent said the money would be used to start paying down the federal debt and not to give rebates back to Americans. Bessent, who spoke in an interview on CNBC,said he expected to revise his earlier estimate of $300 billion in revenues from tariffs, but declined to be specific on what he thought the new amount would be. Reuters reports; Read more here. US copper firms hike prices even after Trump tariff reprieve Copper prices (HG=F) declined 1% on Tuesday, but analysts cautioned that consumers could still see higher costs for wire and cable as firms have more pricing power amid a new tariff environment. Bloomberg reports: Read more here. Copper prices (HG=F) declined 1% on Tuesday, but analysts cautioned that consumers could still see higher costs for wire and cable as firms have more pricing power amid a new tariff environment. Bloomberg reports: Read more here. Trump widens metal tariffs to target baby gear and motorcycles President Trump surprised the logistics industry on Friday by expanding steel and aluminum tariffs to over 400 consumer goods, including motorcycles, baby products and tableware. US customs brokers and importers failed to get much notice and the changes took effect Monday, applying to goods already in transit. Bloomberg News reports: Read more here. President Trump surprised the logistics industry on Friday by expanding steel and aluminum tariffs to over 400 consumer goods, including motorcycles, baby products and tableware. US customs brokers and importers failed to get much notice and the changes took effect Monday, applying to goods already in transit. Bloomberg News reports: Read more here. Trump cracks down on Latin American countries with military action and tariffs In the next 36 hours President Trump will send three Aegis guided-missile destroyers to waters off Venezuela to address what Washington sees as a threat from drug cartels. The news, which was reported in Reuters, shows how the Trump administration are willing to use military force against Latin American drug cartels. Trump has placed pressure on Mexico to crack down on criminal organizations and end fentanyl trafficking. Another method that Trump is using is steep tariffs on goods. Bloomberg News reports: Read more here. In the next 36 hours President Trump will send three Aegis guided-missile destroyers to waters off Venezuela to address what Washington sees as a threat from drug cartels. The news, which was reported in Reuters, shows how the Trump administration are willing to use military force against Latin American drug cartels. Trump has placed pressure on Mexico to crack down on criminal organizations and end fentanyl trafficking. Another method that Trump is using is steep tariffs on goods. Bloomberg News reports: Read more here. Trump tariffs get seal of approval as S&P affirms credit rating S&P Global Ratings on Monday affirmed the US's AA+ long-term rating with a stable outlook, saying tariff revenues will help offset costs from President Trump's recent tax and spending bill. Bloomberg News reports: Read more here. S&P Global Ratings on Monday affirmed the US's AA+ long-term rating with a stable outlook, saying tariff revenues will help offset costs from President Trump's recent tax and spending bill. Bloomberg News reports: Read more here. Brazil challenges legitimacy of US trade probe, urges dialogue Brazil has rejected a US trade investigation launched in July under section 301 of the Trade Act of 1974, which seeks to determine whether its trade and tariff policies unfairly restrict American businesses. In a formal response submitted Monday, Brazil dismissed the allegations and challenged the legitimacy of the probe. Reuters reports: Read more here. Brazil has rejected a US trade investigation launched in July under section 301 of the Trade Act of 1974, which seeks to determine whether its trade and tariff policies unfairly restrict American businesses. In a formal response submitted Monday, Brazil dismissed the allegations and challenged the legitimacy of the probe. Reuters reports: Read more here. Brazil deadlocked with US over 50% tariffs, finance minister says The Financial Times reports: Read more here. The Financial Times reports: Read more here. Nissan's Infiniti attempts 'product renaissance' to jump-start sales and blunt tariffs Nissan's (NSANY) Infiniti brand just unveiled its latest creation, the QX65 midsize crossover SUV, at Monterey Car Week. The launch is part of a product renaissance at the Japanese automaker, which has been plagued with other headaches, such as tariffs. Yahoo Finance's Pras Subramanian reports from Carmel, Calif., that the QX65 will be built in the US, which Infiniti's US head, Tiago Castro, said was 'very important' to increase its US footprint. While Japan has a preliminary deal in place for 15% tariffs, cars imported from Canada and Mexico still have a 25% auto sector tariff tacked on. Signing a tariff deal with Japan is immensely helpful, as the QX80 SUV that's in demand is built in Japan. 'The customers are reacting very well, and we need to deliver the vehicle' and not stop, Castro said. Read more here. Nissan's (NSANY) Infiniti brand just unveiled its latest creation, the QX65 midsize crossover SUV, at Monterey Car Week. The launch is part of a product renaissance at the Japanese automaker, which has been plagued with other headaches, such as tariffs. Yahoo Finance's Pras Subramanian reports from Carmel, Calif., that the QX65 will be built in the US, which Infiniti's US head, Tiago Castro, said was 'very important' to increase its US footprint. While Japan has a preliminary deal in place for 15% tariffs, cars imported from Canada and Mexico still have a 25% auto sector tariff tacked on. Signing a tariff deal with Japan is immensely helpful, as the QX80 SUV that's in demand is built in Japan. 'The customers are reacting very well, and we need to deliver the vehicle' and not stop, Castro said. Read more here. Germany says written EU-US trade deal requires lower car duties Germany said on Monday the US must first implement the agreed lower tariffs on European-made cars before a broader trade deal can be finalized. Reuters reports: Read more here. Germany said on Monday the US must first implement the agreed lower tariffs on European-made cars before a broader trade deal can be finalized. Reuters reports: Read more here. Fewer fake firs, higher prices: China tariff delay does little to save the holidays The holiday season is fast approaching and US shoppers will now face fewer choices for fake Christmas trees and decorations. The price of these items has also gone up due to tariffs on Chinese imports as retailers scale back orders. Reuters reports: Read more here. The holiday season is fast approaching and US shoppers will now face fewer choices for fake Christmas trees and decorations. The price of these items has also gone up due to tariffs on Chinese imports as retailers scale back orders. Reuters reports: Read more here. China ramps up rare earth exports after fright for global buyers Bloomberg News reports: Read more here. Bloomberg News reports: Read more here. EU push to protect digital rules holds up trade statement with US The EU is pushing back against US efforts to challenge its digital rules as both sides work to finalize a delayed trade statement, the FT reported. Disputes over "non-tariff barriers," which Washington says include the EU's Digital Services Act, have stalled the announcement. The statement was expected soon after European Commission president Ursula von der Leyen and President Trump unveiled a tariff deal in Scotland on July 27. EU officials said the US wants room for concession on the act, but Brussels has called the rules a red line. The FT reports: Read more here. The EU is pushing back against US efforts to challenge its digital rules as both sides work to finalize a delayed trade statement, the FT reported. Disputes over "non-tariff barriers," which Washington says include the EU's Digital Services Act, have stalled the announcement. The statement was expected soon after European Commission president Ursula von der Leyen and President Trump unveiled a tariff deal in Scotland on July 27. EU officials said the US wants room for concession on the act, but Brussels has called the rules a red line. The FT reports: Read more here. US adviser Navarro says India's Russian crude buying must stop Reuters reports: Read more here. Reuters reports: Read more here. US trade partners still waiting on Trump to seal their 'deals' US trade partners that worked out exemptions to President Trump's tariffs — like the UK's deal to reduce tariffs on its steel to zero — are still waiting for the agreements to be finalized months later, Bloomberg reports, and are growing frustrated. Read more here. US trade partners that worked out exemptions to President Trump's tariffs — like the UK's deal to reduce tariffs on its steel to zero — are still waiting for the agreements to be finalized months later, Bloomberg reports, and are growing frustrated. Read more here. Candidates at Iowa State Fair hear from voters about Trump tariffs (Bloomberg) — Republican Representative Zach Nunn is making an Iowa State Fair video about President Donald Trump's tax law, shot on a John Deere tractor under the blazing August sun. In it, Nunn, one of the nation's most vulnerable incumbents, talks to constituent Sarah Curry about how the expanded child tax credit will help with the cost of one child's speech therapy. Nunn is also planning to use the state fair as the backdrop for more videos selling the bill's provisions temporarily cutting taxes on tips and overtime. Economic issues — namely, Trump's tax package and his tariff war with countries that buy much of Iowa's agricultural products — will be front and center in Nunn's race, and he's eager to get a jumpstart defining the issues. So, too, are Democrats, who see Iowa's two swing districts as must-wins in their push to take back the House majority. Democrat Jennifer Konfrst, who is working to unseat Nunn, said she approaches Iowans at the fair asking them what keeps them up at night and the answer is usually 'costs.' Read more here. (Bloomberg) — Republican Representative Zach Nunn is making an Iowa State Fair video about President Donald Trump's tax law, shot on a John Deere tractor under the blazing August sun. In it, Nunn, one of the nation's most vulnerable incumbents, talks to constituent Sarah Curry about how the expanded child tax credit will help with the cost of one child's speech therapy. Nunn is also planning to use the state fair as the backdrop for more videos selling the bill's provisions temporarily cutting taxes on tips and overtime. Economic issues — namely, Trump's tax package and his tariff war with countries that buy much of Iowa's agricultural products — will be front and center in Nunn's race, and he's eager to get a jumpstart defining the issues. So, too, are Democrats, who see Iowa's two swing districts as must-wins in their push to take back the House majority. Democrat Jennifer Konfrst, who is working to unseat Nunn, said she approaches Iowans at the fair asking them what keeps them up at night and the answer is usually 'costs.' Read more here. Tariffs' impact on Walmart, other retailers' earnings about to come into focus Several major retailers will report earnings this week, which may give a first glimpse into how President Trump's tariffs have affected their bottom lines. The list includes Walmart (WMT), Target (TGT), Home Depot (HD), Lowe's Companies (LOW) TJ Maxx parent TJX Companies (TJX) and Ross Stores (ROST). The Trump administration has urged retailers not to raise prices for consumers to offset the tariffs' impact, with a particular focus on Walmart, The Street reminds us: Read more here. Several major retailers will report earnings this week, which may give a first glimpse into how President Trump's tariffs have affected their bottom lines. The list includes Walmart (WMT), Target (TGT), Home Depot (HD), Lowe's Companies (LOW) TJ Maxx parent TJX Companies (TJX) and Ross Stores (ROST). The Trump administration has urged retailers not to raise prices for consumers to offset the tariffs' impact, with a particular focus on Walmart, The Street reminds us: Read more here. Trump's trade war not likely to cause recession, Moody's economist says Economist Justin Begley of Moody's Analytics tells USA Today that President Trump's economic policies won't cause a recession or stagflation, but will likely slow growth and push up inflation. The economy isn't in stagflation yet, Begley said, "but it's edging that way," he adds: Read more here. Economist Justin Begley of Moody's Analytics tells USA Today that President Trump's economic policies won't cause a recession or stagflation, but will likely slow growth and push up inflation. The economy isn't in stagflation yet, Begley said, "but it's edging that way," he adds: Read more here. Commerce department applies 50% steel, aluminum tariffs to more products (Reuters) -The Trump administration widened the reach of its 50% tariffs on steel and aluminum imports by adding hundreds of derivative products to the list of goods subject to the levies. In a Federal Register notice late on Friday, the Commerce Department said the Bureau of Industry and Security was adding 407 product codes to the Harmonized Tariff Schedule of the United States that identify the goods to be hit with the additional duties on the steel and aluminum content of those products. The non-steel and non-aluminum content will be subject to the tariff rates President Donald Trump has imposed on the goods originating from specific countries, the notice said. The levies on the goods on the expanded list go into effect on August 18. Read more here. (Reuters) -The Trump administration widened the reach of its 50% tariffs on steel and aluminum imports by adding hundreds of derivative products to the list of goods subject to the levies. In a Federal Register notice late on Friday, the Commerce Department said the Bureau of Industry and Security was adding 407 product codes to the Harmonized Tariff Schedule of the United States that identify the goods to be hit with the additional duties on the steel and aluminum content of those products. The non-steel and non-aluminum content will be subject to the tariff rates President Donald Trump has imposed on the goods originating from specific countries, the notice said. The levies on the goods on the expanded list go into effect on August 18. Read more here. Consumers' inflation expectations rise amid Trump tariffs Inflation expectations rose from July to August, indicating that consumers remain uncertain about President Trump's trade policies. Year-ahead inflation expectations increased to 4.9% from 4.5% last month, according to the University of Michigan's survey of consumers. Long-run inflation expectations also rose to 3.9% in August from 3.4% in July. "Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused," Joanne Hsu, the university's Surveys of Consumers director, wrote. "However, consumers continue to expect both inflation and unemployment to deteriorate in the future." Consumer sentiment also deteriorated month over month, falling for the first time in four months. The University of Michigan's Consumer Sentiment Index fell to 58.6 from 61.7 a month ago. Read more here. Inflation expectations rose from July to August, indicating that consumers remain uncertain about President Trump's trade policies. Year-ahead inflation expectations increased to 4.9% from 4.5% last month, according to the University of Michigan's survey of consumers. Long-run inflation expectations also rose to 3.9% in August from 3.4% in July. "Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused," Joanne Hsu, the university's Surveys of Consumers director, wrote. "However, consumers continue to expect both inflation and unemployment to deteriorate in the future." Consumer sentiment also deteriorated month over month, falling for the first time in four months. The University of Michigan's Consumer Sentiment Index fell to 58.6 from 61.7 a month ago. Read more here. Error al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos
CNBC
2 hours ago
- CNBC
CNBC's The China Connection newsletter: New bets, old worries
Even if AI and robots offer an exciting future, the daily grind for many in China holds more worries. Among the trickle of gloomy headlines this summer, one stirred so much online attention that a state-run social media account published a commentary on Saturday to allay fears. The concern was that a court ruling kicking in on Sept. 1 would force struggling businesses to buy national insurance for all employees, amid frequent talk of pay cuts and merciless competition. But in reality, the ruling isn't something new. "It's not that the government changed the policy, it's that [many businesses] hadn't followed the policy," said Wen Biao, general manager at Shenzhen-based Qianhe Technology Logistics, in Mandarin remarks translated by CNBC. It's a grey area that wasn't enforced, enabling workers to take home more pay or businesses to spend less on labor. China's "social" insurance program includes health and retirement coverage, which means the cash is locked up for medical events or retirement decades away. The renewed attention has fueled discussions on low wages and frequent overtime work, adding to depressed sentiment. In late July, the jobs outlook fell to a record low, according to a quarterly survey by China's central bank. That prompted Morgan Stanley to cut its reading on social sentiment in China to the lowest level since the beginning of the Covid-19 pandemic. Consumer sentiment in the U.S. has also deteriorated, according to a preliminary read for August compiled by the University of Michigan. While American consumers are not bracing for the worst, as they were at the escalation in trade tensions in April, many still expect inflation and unemployment to worsen, the report said. Trade tensions persist, despite the U.S. and China last week extending a trade truce until mid-November. But that still leaves tariffs of around 55% on most Chinese exports to its largest trading partner. China's stronger-than-expected export growth has obscured insufficient domestic demand, said Bruce Pang, adjunct associate professor at the Chinese University of Hong Kong business school. It hasn't taken long for those issues to appear. In just the last several days, data releases for July showed that new bank loans unexpectedly dropped for the first time in 20 years. Retail sales, industrial and investment figures missed expectations — underscoring a still unresolved real estate slump — that Chinese Premier Li Qiang acknowledged in a government meeting Monday. Li called for more effective measures to address the property market, stabilize market expectations and ensure social stability. China's property and construction sector once accounted for more than a quarter of China's GDP and is still the main driver of household wealth. Local governments have also struggled financially after losing revenue from land sales to developers. To address the real estate challenge, Luo Zhiheng, chief economist at Yuekai Securities, proposed Monday that the central government create a 2 trillion yuan ($280 billion) fund to finish building qualified real estate projects. He also called for more financial support for local governments. Despite the headwinds, Beijing has kept its official growth target at around 5% for the year — a goal Premier Li reiterated this week. Pang from the Chinese University of Hong Kong said the economy is still able to achieve the goal, despite some loss of momentum. In his view, business confidence was worse last year, and now it's just a matter of time for policy to take effect. The challenge is that the external situation may disrupt those plans, he said, noting that any additional stimulus hinges on uncertainty around U.S.-China trade tensions and a possible Federal Reserve interest rate cut. But as China's domestic economy slogs through a transition away from real estate, its companies are turning overseas. For Wen of Qianhe Technology, his main business in logistics and overseas e-commerce has been hit by the U.S.-China tensions. He doesn't expect a resurgence of orders, unless tariffs drop significantly before the trade truce expires in November. "It's not just China; the entire world is in a state of unrest," he said. But he's still upbeat. To him, the tensions have just sped up a generational opportunity for Chinese businesses to invest in factories abroad — much like how Singapore, Hong Kong and Taiwan firms once shifted manufacturing to the mainland after China joined the World Trade Organization in 2001. James Peng, CEO of said that the robotaxi company is racing towards profitability as its Gen-7 robotaxi gets cheaper to make. Joe Ngai, Greater China chairman at McKinsey, said Chinese companies are increasingly producing products that have a global market, like Labubus, TikTok, and Black Myth: Wukong — but there's some way to go before they become 'truly global'. Robin Xing, chief China economist at Morgan Stanley, said investors are just shrugging off China's soft data numbers and policy laws. He added that the upcoming fourth Plenum meeting will be much more important than a conventional cyclical parliamentary meeting. Shein's IPO saga continues. The fast-fashion giant is considering moving its base back to China from Singapore as it tries to court Beijing's approval for its long-awaited IPO, Bloomberg reported on Tuesday. Tencent has enough AI training chips. That's what its President Martin Lau told investors last week, after the company reported AI-driven improvements helped boost marketing services revenue by 20% in the second quarter. China's electric car investments ramp up. For the first time, the industry has invested more in factories overseas than at home, according to a report published Monday by U.S.-based consulting firm Rhodium Group. China and Hong Kong stocks inched higher amid mixed trading in the region on Wednesday as investors parsed China's loan prime rate decision. Hong Kong's Hang Seng index climbed 0.19%, while the mainland's CSI 300 added 0.99% after China left its key lending rates steady in August for a third straight month, matching market forecasts. The mainland benchmark is up over 8% year to date, data from LSEG 27: July industrial profits
CNBC
4 hours ago
- CNBC
Trump's trade policies are helping India-China ties — but they aren't resetting them
Chinese Foreign Minister Wang Yi wrapped up his two-day trip to India on Tuesday — the latest sign of warming ties between Beijing and New Delhi. During his visit, Wang said India and China should "view each other as partners and opportunities rather than adversaries or threats," according to a readout from the Chinese Foreign Ministry translated by Google. In the readout, Wang also said the meeting between Chinese President Xi Jinping and Indian Prime Minister Narendra Modi in October 2024 marked a "restart" in China-India relations. Contrast that with the souring of U.S.-India relations over the past few months. U.S. President Donald Trump went from giving bear hugs to Modi in February, to labeling India the "tariff king" six months on, slapping India with one of the highest duties, and accusing it of fueling Russia's war in Ukraine through oil purchases . The rift raises the question: Is India, a country that has enjoyed strong diplomatic relations with Washington, now drawing closer to Beijing? Ivan Lidarev, visiting senior fellow at the Institute of South Asian Studies, told CNBC that India is indeed moving toward Beijing, but pointed out that the cooling of U.S.-India ties is just one factor. India and China ties had warmed after Xi and Modi met in October last year on the sidelines of the BRICS summit, where the two sides had agreed to deescalate tensions along their disputed border. "President Trump's policy toward India, and actually toward China, to some extent, has accelerated this process," Lidarev said. Trump slapped high tariffs on India for buying oil from Moscow, but said last week after his summit with Russian President Vladimir Putin that he has no immediate need to consider retaliatory tariffs on countries such as China for doing the same. Michael Kugelman, director of the South Asia Institute at Washington-based think tank Wilson Center, told CNBC's " Squawk Box Asia " Wednesday that with friction in the U.S.-India relationship, New Delhi is more inclined to hedge against the uncertainty in its relations with the U.S. by trying to "open things up "with China. Lidarev pointed out, "On the U.S. side, there is no change in public perception of India, but on the Indian side, there is a very big change in public perceptions. I think that many Indians are very unhappy with U.S. behavior. They believe that India has been mistreated. They're outraged by the tariffs and by what they see as American attempts to twist India's hand." Thawing China-India ties In a sign of warming ties, China's Wang called on Modi on Tuesday, extending to him an invitation from Xi to the Shanghai Cooperation Organization summit in Tianjin at the end of August. Modi has accepted the invitation. A trip would mark the Indian prime minister's first visit to China in seven years. Direct flights from India to mainland China , which have been suspended since the start of the Covid-19 pandemic in 2020, are set to resume. Both sides also agreed to reopen border trade at three designated trading points. Indian media reported on Wednesday that China agreed to lift curbs on exports on fertilizers, rare earths and tunnel boring machines. Separately, several Indian companies have pursued partnerships with Chinese companies earlier this year, The Economic Times reported in July. Indian conglomerates Reliance and Adani Group have, likewise, reportedly been pursuing deals with Chinese companies , with Adani Group founder Gautam Adani visiting companies like battery maker Contemporary Amperex Technology in June. Tactical, not strategic reset However, the move toward Beijing does not signify a fundamental reshaping of India's relationships in the Indo-Pacific, experts said. Chietigj Bajpaee, senior research fellow for South Asia at Chatham House, told CNBC that the China-India relationship is undergoing a "tactical rather than strategic reset." " None of the fundamental grievances in the bilateral relationship have been resolved," he highlighted. Bajpaee noted that the border dispute has not been resolved, and there are some fault lines that are still present in the relationship, including water disputes and China's "all-weather" relationship with Pakistan. That was seen in the border conflict in May between India and Pakistan, in which the latter claimed that Chinese-made J-10C Pakistani fighters shot down India's French-made Rafale fighter jets. Pakistan had procured the J-10Cs back in 2021, in response to India buying 36 Rafales in 2015. Similarly, Li Mingjiang, associate professor at Singapore's S Rajaratnam School of International Studies said the current detente is more of a "tactical pause." He noted that both sides — referring to Beijing and New Delhi — have strong incentives to manage tensions, but because of the unresolved tensions, the easing is likely to be short term in nature. In his view, the broader Indo-Pacific landscape is still defined by competition and hedging. To be sure, India still does have a deep relationship with the U.S., with the two nations having a "Comprehensive and Global Strategic Partnership" with cooperation in defense, technology, and clean energy . India was also designated a "major defense partner" by the U.S. in 2016. When asked if India will remain the U.S.' counterweight to China, Li said it's unlikely that New Delhi would abandon that role. He added that both countries share "enduring strategic interests" in limiting Beijing's regional dominance, and that current tariff pressures are mainly related to the Russia-Ukraine war. "If that conflict winds down, Washington and New Delhi may find it easier to smooth over trade frictions," Li said.
