Latest news with #AkinGumpStraussHauer&Feld
The Sun
16 hours ago
- Business
- The Sun
Trump extends China tariff truce by 90 days amid trade talks
WASHINGTON: U.S. President Donald Trump has signed an executive order extending a tariff truce with China by another 90 days, a White House official said on Monday with only hours to go before U.S. tariffs on Chinese goods were due to snap back to triple-digit rates. The order followed a noncommittal answer by Trump to reporters as to whether he would extend the lower tariff rates a day after he urged Beijing to quadruple its purchases of U.S. soybeans. A tariff truce between Beijing and Washington was set to expire on Tuesday at 00:01 ET (04:01 GMT). The order prevents U.S. tariffs on Chinese goods from shooting up to 145%, with Chinese tariffs on U.S. goods set to hit 125%, rates that would have resulted in a virtual trade embargo. 'We'll see what happens,' Trump told a press conference, when asked how he planned to extend the deadline. 'They've been dealing quite nicely. The relationship is very good with President Xi (Jinping) and myself.' Imports from China are currently subject to 30% tariffs, including a 10% base rate and 20% in fentanyl-related tariffs imposed by Washington in February and March. China had matched the de-escalation, lowering its rate on U.S. imports to 10%. The two sides in May announced a truce in their trade dispute after talks in Geneva, Switzerland, agreeing to a 90-day period to allow further talks. They met again in Stockholm, Sweden in late July, but did not announce an agreement to further extend the deadline. Kelly Ann Shaw, a senior White House trade official during Trump's first term and now with Akin Gump Strauss Hauer & Feld, said she expected Trump to extend the 90-day 'tariff détente' for another 90 days later on Monday. 'It wouldn't be a Trump-style negotiation if it didn't go right down to the wire,' she said, adding Trump could also announce progress in other aspects of the economic relationship as a backdrop for granting the extension. 'The whole reason for the 90-day pause in the first place was to lay the groundwork for broader negotiations and there's been a lot of noise about everything from soybeans to export controls to excess capacity over the weekend,' she said. Ryan Majerus, a former U.S. trade official now with the King & Spalding law firm, welcomed the news. 'This will undoubtedly lower anxiety on both sides as talks continue, and as the U.S. and China work toward a framework deal in the fall. I'm certain investment commitments will factor into any potential deal, and the extension gives them more time to try and work through some of the longstanding trade concerns,' he said. The White House declined to comment beyond Trump's remarks. The Treasury Department and U.S. Trade Representative's Office did not respond to requests for comment. U.S. Treasury Secretary Scott Bessent has said Washington has the makings of a deal with China and he was 'optimistic' about the path forward. Trump pushed for additional concessions on Sunday, urging China to quadruple its soybean purchases, although analysts questioned the feasibility of any such deal. Trump did not repeat the demand on Monday. But Washington has also been pressing Beijing to stop buying Russian oil, with Trump threatening to impose secondary tariffs on China. - Reuters
West Australian
20 hours ago
- Business
- West Australian
US President Donald Trump extends China's 125 per cent tariff by 90 days
US President Donald Trump has signed an executive order extending a tariff truce with China by another 90 days, a White House official says with only hours to go before US tariffs on Chinese goods were due to snap back to triple-digit rates. The order followed a non-committal answer by Mr Trump to reporters as to whether he would extend the lower tariff rates a day after he urged Beijing to quadruple its purchases of US soybeans. A tariff truce between Beijing and Washington was set to expire on Tuesday. The order prevents US tariffs on Chinese goods from shooting up to 145 per cent, with Chinese tariffs on US goods set to hit 125 per cent, rates that would have resulted in a virtual trade embargo. 'We'll see what happens,' Mr Trump told a press conference, when asked how he planned to extend the deadline. 'They've been dealing quite nicely. The relationship is very good with President Xi (Jinping) and myself.' Imports from China are currently subject to 30 per cent tariffs, including a 10 per cent base rate and 20 per cent in fentanyl-related tariffs imposed by Washington in February and March. China had matched the de-escalation, lowering its rate on US imports to 10 per cent. The two sides in May announced a truce in their trade dispute after talks in Geneva, Switzerland, agreeing to a 90-day period to allow further talks. They met again in Stockholm, Sweden in late July, but did not announce an agreement to further extend the deadline. Kelly Ann Shaw, a senior White House trade official during Mr Trump's first term and now with Akin Gump Strauss Hauer & Feld, said she expected Mr Trump to extend the 90-day 'tariff détente' for another 90 days later on Monday. 'It wouldn't be a Trump-style negotiation if it didn't go right down to the wire,' she said, adding Mr Trump could also announce progress in other aspects of the economic relationship as a backdrop for granting the extension. 'The whole reason for the 90-day pause in the first place was to lay the groundwork for broader negotiations and there's been a lot of noise about everything from soybeans to export controls to excess capacity over the weekend.' Ryan Majerus, a former US trade official now with the King & Spalding law firm, welcomed the news. 'This will undoubtedly lower anxiety on both sides as talks continue, and as the US and China work toward a framework deal in the fall. I'm certain investment commitments will factor into any potential deal, and the extension gives them more time to try and work through some of the longstanding trade concerns,' he said. The White House declined to comment beyond Mr Trump's remarks. The Treasury Department and US Trade Representative's Office did not respond to requests for comment. US Treasury Secretary Scott Bessent has said Washington has the makings of a deal with China and he was 'optimistic' about the path forward. Mr Trump pushed for additional concessions on Sunday, urging China to quadruple its soybean purchases, although analysts questioned the feasibility of any such deal. But Washington has also been pressing Beijing to stop buying Russian oil, with Mr Trump threatening to impose secondary tariffs on China.
Perth Now
20 hours ago
- Business
- Perth Now
Trump extends China tariff truce by another 90 days
US President Donald Trump has signed an executive order extending a tariff truce with China by another 90 days, a White House official says with only hours to go before US tariffs on Chinese goods were due to snap back to triple-digit rates. The order followed a non-committal answer by Mr Trump to reporters as to whether he would extend the lower tariff rates a day after he urged Beijing to quadruple its purchases of US soybeans. A tariff truce between Beijing and Washington was set to expire on Tuesday. The order prevents US tariffs on Chinese goods from shooting up to 145 per cent, with Chinese tariffs on US goods set to hit 125 per cent, rates that would have resulted in a virtual trade embargo. 'We'll see what happens,' Mr Trump told a press conference, when asked how he planned to extend the deadline. 'They've been dealing quite nicely. The relationship is very good with President Xi (Jinping) and myself.' Imports from China are currently subject to 30 per cent tariffs, including a 10 per cent base rate and 20 per cent in fentanyl-related tariffs imposed by Washington in February and March. China had matched the de-escalation, lowering its rate on US imports to 10 per cent. The two sides in May announced a truce in their trade dispute after talks in Geneva, Switzerland, agreeing to a 90-day period to allow further talks. They met again in Stockholm, Sweden in late July, but did not announce an agreement to further extend the deadline. Kelly Ann Shaw, a senior White House trade official during Mr Trump's first term and now with Akin Gump Strauss Hauer & Feld, said she expected Mr Trump to extend the 90-day 'tariff détente' for another 90 days later on Monday. 'It wouldn't be a Trump-style negotiation if it didn't go right down to the wire,' she said, adding Mr Trump could also announce progress in other aspects of the economic relationship as a backdrop for granting the extension. 'The whole reason for the 90-day pause in the first place was to lay the groundwork for broader negotiations and there's been a lot of noise about everything from soybeans to export controls to excess capacity over the weekend.' Ryan Majerus, a former US trade official now with the King & Spalding law firm, welcomed the news. 'This will undoubtedly lower anxiety on both sides as talks continue, and as the US and China work toward a framework deal in the fall. I'm certain investment commitments will factor into any potential deal, and the extension gives them more time to try and work through some of the longstanding trade concerns,' he said. The White House declined to comment beyond Mr Trump's remarks. The Treasury Department and US Trade Representative's Office did not respond to requests for comment. US Treasury Secretary Scott Bessent has said Washington has the makings of a deal with China and he was 'optimistic' about the path forward. Mr Trump pushed for additional concessions on Sunday, urging China to quadruple its soybean purchases, although analysts questioned the feasibility of any such deal. But Washington has also been pressing Beijing to stop buying Russian oil, with Mr Trump threatening to impose secondary tariffs on China.
Kuwait Times
5 days ago
- Business
- Kuwait Times
Trump may look like he's winning the trade war, but hurdles remain
Higher tariffs on trading partners could inflict economic harm on Americans: Economists WASHINGTON: At a glance, US President Donald Trump appears to be winning the trade war he unleashed after returning to the White House in January, bending major trading partners to his will, imposing double-digit tariff rates on nearly all imports, narrowing the trade deficit, and raking in tens of billions of dollars a month in much-needed cash for federal government coffers. Significant hurdles remain, however, including whether US trading partners will make good on investment and goods-purchase commitments, how much tariffs will drive up inflation or stymie demand and growth, and whether the courts allow many of his ad-hoc levies to stand. On inauguration day, the effective US tariff rate was about 2.5 percent. It has since jumped to somewhere between 17 percent and 19 percent, according to a range of estimates. The Atlantic Council estimates it will edge closer to 20 percent, the highest in a century, with higher duties taking effect on Thursday. Trading partners have largely refrained from retaliatory tariffs, sparing the global economy from a more painful tit-for-tat trade war. Data on Tuesday showed a 16 percent narrowing of the US trade deficit in June, while the US trade gap with China shrank to its smallest in more than 21 years. American consumers have shown themselves to be more resilient than expected, but some recent data indicate the tariffs are already affecting jobs, growth and inflation. 'The question is, what does winning mean?' said Josh Lipsky, who heads economic studies at the Atlantic Council. 'He's raising tariffs on the rest of the world and avoiding a retaliatory trade war far easier than even he anticipated, but the bigger question is what effect does that have on the US economy.' Michael Strain, head of economic policy studies at the conservative American Enterprise Institute, said Trump's geopolitical victories could prove hollow. 'In a geopolitical sense, Trump's obviously getting tons of concessions from other countries, but in an economic sense, he's not winning the trade war,' he said. 'What we're seeing is that he is more willing to inflict economic harm on Americans than other countries are willing to inflict on their nations. And I think of that as losing.' Kelly Ann Shaw, a White House trade adviser during Trump's first term who is now a partner at Akin Gump Strauss Hauer & Feld, said a still-strong economy and near-record-high stock prices 'support a more aggressive tariff strategy.' But Trump's tariffs, tax cuts, deregulation and policies to boost energy production would take time to play out. 'I think history will judge these policies, but he is the first president in my lifetime to make major changes to the global trading system,' she added. Trump has concluded eight framework agreements with the European Union, Japan, Britain, South Korea, Vietnam, Indonesia, Pakistan and the Philippines that impose tariffs on their goods ranging from 10 percent to 20 percent. That's well short of the '90 deals in 90 days' administration officials had touted in April, but they account for some 40 percent of US trade flows. Adding in China, currently saddled with a 30 percent levy on its goods but likely to win another reprieve from even higher tariffs before an August 12 deadline, would raise that to nearly 54 percent. Deals aside, many of Trump's tariff actions have been mercurial. On Wednesday he ratcheted up pressure on India, doubling new tariffs on goods from there to 50 percent from 25 percent because of its imports of oil from Russia. The same rate is in store for goods from Brazil, after Trump complained about its prosecution of former leader Jair Bolsonaro, a Trump ally. And Switzerland, which Trump had previously praised, is facing 39 percent tariffs after a conversation between its leader and Trump derailed a deal. Ryan Majerus, a trade lawyer who worked in both the first Trump administration and the Biden government, said what's been announced so far fails to address 'longstanding, politically entrenched trade issues' that have bothered US policymakers for decades, and getting there would likely take 'months, if not years.' He also noted they lack specific enforcement mechanisms for the big investments announced, including $550 billion for Japan and $600 billion for the EU. Promises and risks Critics lit into European Commission President Ursula von der Leyen after she agreed to a 15 percent tariff during a surprise meeting with Trump during his trip to Scotland last month, while gaining little in return. The deal frustrated winemakers and farmers, who had sought a zero-for-zero tariff. Francois-Xavier Huard, head of France's FNIL national dairy sector federation, said 15 percent was better than the threatened 30 percent, but would still cost dairy farmers millions of euros. European experts say von der Leyen's move did avert higher tariffs, calmed tensions with Trump, averting potentially higher duties on semiconductors, pharmaceuticals and cars, while making largely symbolic pledges to buy $750 billion of US strategic goods and invest over $600 billion. Meeting those pledges will fall to individual EU members and companies, and cannot be mandated by Brussels, trade experts and analysts note. US officials insist Trump can re-impose higher tariffs if he believes the EU, Japan or others are not honoring their commitments. But it remains unclear how that would be policed. And history offers a caution. China, with its state-run economy, never met its modest purchase agreements under Trump's Phase 1 US-China trade deal. Holding it to account proved difficult for the subsequent Biden administration. 'All of it is untested. The EU, Japan and South Korea are going to have to figure out how to operationalize this,' Shaw said. 'It's not just government purchases. It's getting the private sector motivated to either make investments or back loans, or to purchase certain commodities.' And lastly, the main premise for the tariffs Trump has imposed unilaterally faces legal challenges. His legal team met with stiff questioning during appellate court oral arguments over his novel use of the 1977 International Emergency Economic Powers Act, historically used for sanctioning enemies or freezing their assets, to justify his tariffs. A ruling could come any time and regardless of the outcome seems destined to be settled ultimately by the Supreme Court. — Reuters
Time of India
5 days ago
- Business
- Time of India
Trump may look like he's winning the trade war, but hurdles remain
At a glance, U.S. President Donald Trump appears to be winning the trade war he unleashed after returning to the White House in January, bending major trading partners to his will, imposing double-digit tariff rates on nearly all imports, narrowing the trade deficit, and raking in tens of billions of dollars a month in much-needed cash for federal government coffers. Significant hurdles remain, however, including whether U.S. trading partners will make good on investment and goods-purchase commitments, how much tariffs will drive up inflation or stymie demand and growth, and whether the courts allow many of his ad-hoc levies to stand. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program On inauguration day, the effective U.S. tariff rate was about 2.5%. It has since jumped to somewhere between 17% and 19%, according to a range of estimates. The Atlantic Council estimates it will edge closer to 20%, the highest in a century, with higher duties taking effect on Thursday. Trading partners have largely refrained from retaliatory tariffs, sparing the global economy from a more painful tit-for-tat trade war. Data on Tuesday showed a 16% narrowing of the U.S. trade deficit in June, while the U.S. trade gap with China shrank to its smallest in more than 21 years. American consumers have shown themselves to be more resilient than expected, but some recent data indicate the tariffs are already affecting jobs, growth and inflation. Live Events "The question is, what does winning mean?" said Josh Lipsky, who heads economic studies at the Atlantic Council. "He's raising tariffs on the rest of the world and avoiding a retaliatory trade war far easier than even he anticipated, but the bigger question is what effect does that have on the U.S. economy." Michael Strain, head of economic policy studies at the conservative American Enterprise Institute, said Trump's geopolitical victories could prove hollow. "In a geopolitical sense, Trump's obviously getting tons of concessions from other countries, but in an economic sense, he's not winning the trade war," he said. "What we're seeing is that he is more willing to inflict economic harm on Americans than other countries are willing to inflict on their nations. And I think of that as losing." Kelly Ann Shaw, a White House trade adviser during Trump's first term who is now a partner at Akin Gump Strauss Hauer & Feld, said a still-strong economy and near-record-high stock prices "support a more aggressive tariff strategy." But Trump's tariffs, tax cuts, deregulation and policies to boost energy production would take time to play out. "I think history will judge these policies, but he is the first president in my lifetime to make major changes to the global trading system," she added. DEALS SO FAR Trump has concluded eight framework agreements with the European Union, Japan, Britain, South Korea, Vietnam, Indonesia, Pakistan and the Philippines that impose tariffs on their goods ranging from 10% to 20%. That's well short of the "90 deals in 90 days" administration officials had touted in April, but they account for some 40% of U.S. trade flows. Adding in China, currently saddled with a 30% levy on its goods but likely to win another reprieve from even higher tariffs before an August 12 deadline, would raise that to nearly 54%. Deals aside, many of Trump's tariff actions have been mercurial. On Wednesday he ratcheted up pressure on India, doubling new tariffs on goods from there to 50% from 25% because of its imports of oil from Russia. The same rate is in store for goods from Brazil, after Trump complained about its prosecution of former leader Jair Bolsonaro, a Trump ally. And Switzerland, which Trump had previously praised, is facing 39% tariffs after a conversation between its leader and Trump derailed a deal. Ryan Majerus, a trade lawyer who worked in both the first Trump administration and the Biden government, said what's been announced so far fails to address "longstanding, politically entrenched trade issues" that have bothered U.S. policymakers for decades, and getting there would likely take "months, if not years." He also noted they lack specific enforcement mechanisms for the big investments announced, including $550 billion for Japan and $600 billion for the EU. PROMISES AND RISKS Critics lit into European Commission President Ursula von der Leyen after she agreed to a 15% tariff during a surprise meeting with Trump during his trip to Scotland last month, while gaining little in return. The deal frustrated winemakers and farmers, who had sought a zero-for-zero tariff. Francois-Xavier Huard, head of France's FNIL national dairy sector federation, said 15% was better than the threatened 30%, but would still cost dairy farmers millions of euros. European experts say von der Leyen's move did avert higher tariffs, calmed tensions with Trump, averting potentially higher duties on semiconductors, pharmaceuticals and cars, while making largely symbolic pledges to buy $750 billion of U.S. strategic goods and invest over $600 billion. Meeting those pledges will fall to individual EU members and companies, and cannot be mandated by Brussels, trade experts and analysts note. U.S. officials insist Trump can re-impose higher tariffs if he believes the EU, Japan or others are not honoring their commitments. But it remains unclear how that would be policed. And history offers a caution. China, with its state-run economy, never met its modest purchase agreements under Trump's Phase 1 U.S.-China trade deal. Holding it to account proved difficult for the subsequent Biden administration. "All of it is untested. The EU, Japan and South Korea are going to have to figure out how to operationalize this," Shaw said. "It's not just government purchases. It's getting the private sector motivated to either make investments or back loans, or to purchase certain commodities." And lastly, the main premise for the tariffs Trump has imposed unilaterally faces legal challenges. His legal team met with stiff questioning during appellate court oral arguments over his novel use of the 1977 International Emergency Economic Powers Act, historically used for sanctioning enemies or freezing their assets, to justify his tariffs. A ruling could come any time and regardless of the outcome seems destined to be settled ultimately by the Supreme Court.
