Trump administration will rescind Biden-era AI chip export curbs, Commerce Department says
The Biden AI rule is "overly complex, overly bureacratic," and will be replaced, the spokesperson said.
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US commerce secretary says Trump really likes TikTok, but app has to move to US ownership
WASHINGTON :U.S. President Donald Trump likes TikTok but the Chinese-owned short video app, used by some 170 million Americans, has to move to U.S. ownership, Secretary of Commerce Howard Lutnick said on Sunday. "The President really likes TikTok, and he said it over and over again, because, you know, it was a good way to communicate with young people," Lutnick said in an interview on Fox News Sunday with Shannon Bream. "But let's face it, you can't have the Chinese have an app on 100 million American phones, that is just not okay. So, it's got to move to American ownership, it's got to move to American technology, American algorithms," he said. "I know the President is positive towards TikTok, if it can move into American hands."
CNA
4 hours ago
- CNA
US Fed poised to hold off on rate cuts, defying Trump pressure
WASHINGTON: 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 criticised Fed Chair Jerome Powell for not slashing rates further, calling him a "numbskull" and "moron". Most recently, Trump signalled he could use the Fed's US$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 characterisation 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 per cent tariff on goods from almost all countries, as well as steeper rates on steel, aluminium 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 per cent and 4.50 per cent. 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 labour 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 signalled 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 labour 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 labour market, but they haven't turned into fault lines yet," Sweet said. If the labour market suddenly weakened, he said he would expect the Fed to start cutting interest rates sooner.
Straits Times
4 hours ago
- Straits Times
Trump, EU's von der Leyen to meet on Sunday to clinch trade deal
FILE PHOTO: U.S. President Donald Trump waves on the golf course at Trump Turnberry resort in Turnberry, Scotland, Britain, July 26, 2025. REUTERS/Phil Noble/File Photo GLASGOW - European Commission President Ursula von der Leyen is set to meet U.S. President Donald Trump on Sunday to clinch a trade deal for Europe that would likely see a 15% baseline tariff on most EU goods, but end months of uncertainty for EU companies. Before the meeting, expected at 1530 GMT on Trump's golf course in Turnberry, western Scotland, U.S. and EU teams were in final talks on tariffs for crucial sectors like cars, steel, aluminium or pharmaceuticals. U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick flew to Scotland on Saturday and EU Trade Commissioner Maros Sefcovic arrived on Sunday morning. "We're cautiously optimistic that there will be a deal reached," said a Trump administration official, who spoke on condition of anonymity. "But it's not over till it's over." Ambassadors of EU governments, on a weekend trip to Greenland organised by the Danish presidency of the EU, held a teleconference with EU Commission officials on Sunday to agree on the amount of leeway von der Leyen would have in the talks. In case there is no deal and the U.S. imposes 30% tariffs from August 1, the EU has prepared counter-tariffs on 93 billion euros ($109 billion) of U.S. goods. EU diplomats have said a deal would likely include a broad 15% tariff on EU goods imported into the U.S., mirroring the U.S.-Japan trade deal, along with a 50% tariff on European steel and aluminium for which there could be export quotas. The EU deal would be a huge prize, given that the U.S. and EU are each other's largest trading partners by far and account for a third of global trade. EU officials are hopeful that a 15% baseline tariff would also apply to cars, replacing the current 27.5% auto tariff. POSSIBLE EXEMPTIONS Some expect the 27-nation bloc may be able to secure exemptions from the 15% baseline tariff for its aerospace industry and for spirits, though probably not for wine. The EU could also pledge to buy more liquefied natural gas from the U.S., a long-standing offer, and boost investment in the United States. Trump told reporters there was "not a lot" of wiggle room on the 50% tariffs that the U.S. has on steel and aluminium imports, adding, "because if I do it for one, I have to do it for all." The U.S. president, in Scotland for a few days of golfing and bilateral meetings, told reporters upon his arrival on Friday evening that von der Leyen was a highly respected leader and he was looking forward to meeting with her. He said there was a 50-50 chance that the two sides could reach a framework trade pact, adding that Brussels wanted to "make a deal very badly". The EU now faces U.S. tariffs on more than 70% of its exports, with 50% on steel and aluminium, an extra 25% on cars and car parts on top of the existing 2.5% and a 10% levy on most other EU goods. Trump has said that without a deal, he would hike the rate to 30% on August 1, a level EU officials said would wipe out whole chunks of transatlantic commerce. Further tariffs on copper and pharmaceuticals are looming. The uncertainty and higher tariffs have already hit profits of EU companies in several sectors. A 15% tariff on most EU goods would remove uncertainty but would be seen by many in Europe as a poor outcome compared to the initial European ambition of a zero-for-zero tariff deal on all industrial goods. Seeking to learn from Japan, which secured a 15% baseline tariff with the U.S. in a deal earlier this week, EU negotiators spoke to their Japanese counterparts in preparation for Sunday's meeting. For Trump, aiming to reorder the global economy and reduce decades-old U.S. trade deficits, a deal with the EU would be the biggest trade agreement, surpassing the $550 billion deal with Japan. So far, he has reeled in agreements with Britain, Japan, Indonesia and Vietnam, although his administration has failed to deliver on a promise of "90 deals in 90 days." REUTERS
