European Stock Futures Rally on Signs EU-US Close to Trade Deal
Euro Stoxx 50 futures rallied as much as 2.4%. The benchmark Stoxx Europe 600 Index had closed 1.1% higher, its biggest one-day advance since June 27.
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New York Times
2 hours ago
- New York Times
Chinese and European Leaders Meet Amid Grievances on Trade
The European Union has sent the president of the European Commission, Ursula von der Leyen, and other top officials to Beijing for a high-profile, high-stakes summit on Thursday with their Chinese counterparts, complete with nods to the 50-year anniversary of their diplomatic ties. Both sides came with long lists of grievances over trade. The Europeans want an end to the flood of Chinese exports that they insist is unfairly bolstered by government financial support. The Chinese angrily deny the allegations and want the European Union to lift tariffs and embrace trade with China. Neither European Union leaders nor Chinese officials said they expected the summit to resolve their many differences, which also include an intense disagreement over China's support for Russia and its war in Ukraine. Beijing wants the European Union to rescind its tariffs on electric cars from China and take other measures to allow more Chinese exports into the continent. But European leaders have made clear that they want to address many serious concerns about China's recent policies. They are upset that China's state-owned banks are lending at low interest rates to the country's manufacturers. The resulting overflow of inexpensive goods has pushed up China's trade surplus with the European Union to more than $350 billion. Want all of The Times? Subscribe.
Politico
2 hours ago
- Politico
Trump's 'massive' deal with Japan is giving US automakers heartburn
And Elon Musk's Tesla on Wednesday posted another quarter of meager profitability and revenue, in part due to the tariffs. Tesla said its profitability decreased for the quarter because of lower regulatory credit revenue, a decline in vehicle deliveries and a lower cost per vehicle due to 'mix and lower raw materials partially offset by lower fixed cost absorption and an increase in tariffs.' Those losses will be tougher to swallow if other major trading partners succeed in negotiating better tariff rates for their own automakers. Reuters reported Wednesday that stocks in Japanese car companies Toyota and Honda soared on the news of the deal, but so did shares of South Korean and European carmakers, as hopes rise that their leaders could strike similar deals. Trump's auto tariffs have been a sticking point in trade negotiations with the EU for months, with Germany vocally pushing the 27-member bloc to make major concessions to Trump in hopes of winning a reprieve for its large auto manufacturing sector. 'The costs for our companies are already in the billions — and the sum is growing every day,' said Hildegard Müller, president of VDA, the German automobile association, which represents companies such as Volkswagen, BMW and Mercedes. 'The damage to the previously functioning supply chains is enormous and must not be allowed to increase any further.' German auto companies are reporting double-digit declines in exports to the U.S. in April and May, and they aren't the only ones. Volvo, the Swedish car company, has had to pause sales of some of its cars in the U.S. South Korean car companies Hyundai and Kia will announce their second quarter financial results later this week and both companies are projecting significant losses from the tariffs, as well. Auto exports from South Korea to the U.S. have exploded over the past 20 years, from $8.7 billion in 2005 to $37.3 billion in 2024, according to data collected by the Census Bureau. As with Japan and the EU, the duties have been a focal point of trade talks with the Trump administration, which has grown frustrated by the lack of progress. Trump sent a letter to new South Korean President Lee Jae-Myung on July 7 threatening a 25 percent tariff on all its exports to the U.S. — a sign of dissatisfaction with the state of the talks. (He sent a nearly identical letter to Japan's prime minister the same day.) After imposing the auto tariffs this spring, the administration assured American automakers that they would not become a bargaining chip in other trade negotiations, a person familiar with discussions between the administration and Detroit's 'Big Three' auto companies, granted anonymity because of the sensitive nature of the talks, told POLITICO at the time. The president sought to cast the UK deal, which reduced duties on auto and auto parts to 10 percent for the first 100,000 cars entering the U.S., as an exception. 'I won't do that deal with cars' for other countries, Trump said when announcing the terms of negotiation on May 8. The British auto brand Rolls-Royce is 'a very special car and it's a very limited number, too. It's not one of the monster car companies that makes millions of cars,' he noted, although some British brands like Land Rover compete with American SUVs. A White House official, granted anonymity to discuss the trade talks, struck a similar note on Wednesday, downplaying the prospect that Trump will agree to lower the car tariffs for any more countries. 'It's a negotiation,' the person said, pointing to the $550 billion investment Japanese businesses pledged as a sign that the country had made an unparalleled offer. In Japan, embattled Prime Minister Shigeru Ishiba celebrated the agreement, saying it was focused on 'prioritizing investment over tariffs.' But others were less enthusiastic about the outcome, given the double-digit tariff rate still hitting Japanese goods. 'If 15 percent is applied to autos and auto parts, Japan did not get what it was aiming for,' said former Japanese Vice Minister Tatsuya Terazawa. Ari Hawkins contributed to this report.
Hamilton Spectator
3 hours ago
- Hamilton Spectator
State Department approves $322 million in proposed weapons sales to Ukraine
The State Department said Wednesday that it has approved $322 million in proposed weapons sales to Ukraine to enhance its air defense capabilities and provide armored combat vehicles, coming as the country works to fend off escalating Russian attacks. The potential sales, which the department said were notified to Congress, include $150 million for the supply, maintenance, repair and overhaul of U.S. armored vehicles, and $172 million for surface-to-air missile systems. The approvals come weeks after Defense Secretary Pete Hegseth directed a pause on other weapons shipments to Ukraine to allow the Pentagon to assess its weapons stockpiles, in a move that caught the White House by surprise. President Donald Trump then made an abrupt change in posture , pledging publicly earlier this month to continue to send weapons to Ukraine. 'We have to,' Trump said. 'They have to be able to defend themselves. They're getting hit very hard now. We're going to send some more weapons — defensive weapons primarily.' Trump recently endorsed a plan to have European allies buy U.S. military equipment that can then be transferred to Ukraine . It was not immediately clear how the latest proposed sales related to that arrangement. Since Russia launched its full-scale invasion of Ukraine in February 2022, the U.S. has provided more than $67 billion in weapons and security assistance to Kyiv. Since Trump came back into office, his administration has gone back and forth about providing more military aid to Ukraine, with political pressure to stop U.S. funding of foreign wars coming from the isolationists inside the Trump administration and on Capitol Hill. Over the course of the war, the U.S. has routinely pressed for allies to provide air defense systems to Ukraine. But many are reluctant to give up the high-tech systems, particularly countries in Eastern Europe that also feel threatened by Russia. ___ Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
