Latest news with #AmericaInc
Mint
a day ago
- Business
- Mint
Will the China-US truce spell rare-earth relief?
Gift this article After two days of hectic talks in London between trade representatives of the US and China, another trade truce has been declared struck, with the two countries agreeing to fully implement the last one forged in Geneva. Under it, they had agreed to a suspension of new tariffs. After two days of hectic talks in London between trade representatives of the US and China, another trade truce has been declared struck, with the two countries agreeing to fully implement the last one forged in Geneva. Under it, they had agreed to a suspension of new tariffs. Also Read: China risks overplaying its hand by curbing rare earth exports The US had apparently expected Beijing to ease its export curbs on rare earth minerals, a severe shortage of which has lately sent key industries—from defence to electronics and electric vehicles (EVs)—into a tizzy across the world. Instead of ending export barriers, Beijing may have taken its part of the bargain to mean faster shipment clearances. The London outcome seems to offer America Inc relief, as US commerce secretary Howard Lutnick has said the US expects the squeeze to be resolved now. The framework deal only awaits the leaders of both countries to sign off on it. It's unclear, however, whether this can be greeted as good news by non-US importers of those rare earths. EV-makers in India have also faced a rare-earth crunch that threatens to hold EV production back. Beijing has been dragging its feet on okaying supplies to Indian importers. Maybe India needs to hold talks with China too. Topics You May Be Interested In
Business Times
21-05-2025
- Business
- Business Times
American brands have a new image problem
FOR decades America's soft power put the wind in the sails of its companies as they ventured abroad. When the Berlin Wall fell, Coca-Cola sent lorries emblazoned with its logo into East Berlin, handing out free drinks to the amassing crowds. Sales soon soared, as consumers in the former communist state chugged enthusiastically on the sugary icon of American capitalism. Peddling Americana abroad, however, is getting trickier. Last month Carlsberg, a Danish brewer that bottles Coca-Cola in its home country, noted that consumers there were boycotting the fizzy drink, opting for local alternatives such as Jolly Cola instead. For this Coca-Cola can thank Donald Trump, who has exasperated Danes – and many other consumers around the world – with his talk of territorial expansion and his chaotic trade war. How worried should America Inc's bosses be about their new image problem? That Trump has damaged America's reputation abroad is clear to see. In a survey of more than 100,000 people across 100 countries carried out last month by Nira Data, a research firm, for the Alliance of Democracies, a Danish non-profit, the share of respondents with an unfavourable view of America exceeded those with a favourable opinion by five percentage points, a sharp deterioration from previous years, and enough to place America behind China in global esteem. The president's actions are already weighing on American companies' sales abroad. The backlash has been strongest in Canada, whose citizens have railed against the suggestion that their country become America's 51st state, and Denmark, thanks to Trump's threats to pinch Greenland. Last month 61 per cent of Canadians told YouGov, a pollster, that they were boycotting American products. Earlier this year Ontario and Quebec, Canada's two largest provinces, pulled American-made alcohol from the shelves of government-run liquor stores, hurting sales of products such as Jack Daniel's. Kraft Heinz, an American food giant, has been reminding Canadians that much of what it sells in the country is made there from local ingredients. In Denmark, the country's largest retailer, Sailing Group, has been labelling European-owned brands in its shops to make it easier for customers to avoid American products. The souring of consumers towards American brands has been on display elsewhere in Europe, too. Tesla, Elon Musk's carmaker, is perhaps the most prominent example: new registrations of its vehicles in Europe fell by more than 40 per cent year on year in the first quarter. But it is not the only American company at risk. In a survey conducted in March, the European Central Bank asked respondents how likely they would be on a 100-point scale to substitute away from American goods in a hypothetical scenario in which America imposed a blanket tariff that the EU then matched, where 100 indicated a strong willingness to switch. The median score given by Europeans was 80. Tellingly, respondents were more likely to cite preference, rather than price, as their main reason for switching. All this will worry American firms, which make more than US$8 trillion in foreign sales each year. Not all will be equally harmed by their country's deteriorating global image. Morning Consult, a pollster, has examined the correlation between consumers' views of America and their opinion of the country's brands across industries. The relationship is strongest for technology companies, carmakers and food-and-beverage firms, and weakest for hospitality companies, logistics providers and healthcare firms. Foreign consumers are more likely to forgo a bag of Cheetos in protest than they are a cancer treatment from Pfizer. A lack of alternatives may also make it harder for them to abandon services such as Google or Instagram. Even so, many American firms will have to grapple with the fact that their nationality may no longer be an asset – but a liability. ©2025 The Economist Newspaper Limited. All rights reserved
Indian Express
13-05-2025
- Business
- Indian Express
What is Musk doing in Saudi Arabia during Trump's visit to the Kingdom
US President Donald Trump began his three-nation Gulf tour on Tuesday in Riyadh and announced a haul of over $1 trillion in investments on Day 1. Trump also signed a defence agreement worth $142 billion, according to the White House, allowing Saudi Arabia to buy state-of-the-art equipment and services from American companies. This was a powerful boost for the president, who has embarked on the first major global tour during his second term in the Oval Office, determined to prove to his detractors that his deal-focused approach can net big gains for the American economy. When he stepped out of the Air Force One at King Khalid International Airport in the Saudi capital, he was greeted by Saudi Crown Prince Mohammed bin Salman, the de-facto ruler of the kingdom. Besides dealmaking, the two will also put their heads together to try and find a solution to a host of issues ranging from US efforts to dismantle Iran's nuclear programme, end the war in Gaza, and limit the increase in oil prices. But Trump isn't alone. A battery of the top honchos of America Inc accompanied the US Commander-in-Chief. Stephen Schwarzman of Blackstone, Larry Fink of BlackRock and Jane Fraser of Citigroup came from the financial world. Andy Jassy, the chief executive of Amazon, Jensen Huang, chief executive of Nvidia and AI czar Sam Altman of OpenAI brought in the tech weight. But one name that has aroused great interest due to his proximity to Trump has been Elon Musk, the CEO of Tesla and SpaceX. Musk, who leads the US Department of Government Efficiency (DOGE), is considered close to Trump in US policy circles and has his fingerprints on many of Trump's actions. He has also attended Cabinet meetings and joined Trump on Air Force One, the US president's official aircraft. But of late, the tech billionaire's sway over Trump seems to be waning. This was especially clear on the issue of waging a tariff war by slapping punishing import taxes on almost all of US trade partners. While Trump went ahead with the plan, Musk seemed opposed to it, with his trade network spread across the world in China and Europe. Yet, Musk remains a powerful voice in tech and policy circles, and also owns social media platform X and AI company xAI. Musk, the richest person in the world, joined President Trump and top US and Saudi officials for lunch in Riyadh. The executives, whose sphere of operation spans tech firms, banking, consumer groups and other industries, may look forward to pocket investments from wealthy Saudi investors, businesses and government departments, the New York Times reported. The executives may also try to convince Trump administration officials, such as Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, to loosen tariffs that are hurting their businesses. Musk was seen briefly chatting with both Trump and the crown prince at the Royal Court during a coffee ceremony. Trump patted Musk on the back as he introduced the Tesla boss to MBS, the Hill reported. This interaction took place before a palace reception in honour of the visiting US president. Musk also attended the Saudi-US investment forum that's being held on the sidelines of Trump's visit. The polarising chief executive's electric carmaker Tesla drove into the kingdom only in April. Before this, the billionaire CEO and the kingdom's sovereign wealth fund, called Public Investment Fund or the PIF, were embroiled in a feud dating back to 2018. The conflict had roots in Musk's public announcement that he had secured funds from PIF to take Tesla private, claims that later proved to be untrue and also led to heightened regulatory scrutiny of Tesla and Musk in the US.
Yahoo
12-04-2025
- Business
- Yahoo
China retaliates again in Trump's trade war, prompting flight from US assets
By Jeff Mason, Nandita Bose, Joe Cash and Karin Strohecker ABOARD AIR FORCE ONE/BEIJING/LONDON (Reuters) -Beijing increased its tariffs on U.S. imports to 125% on Friday, hitting back against President Donald Trump's decision to raise duties on Chinese goods and increasing the stakes in a trade war that threatens to upend global supply chains. The retaliation intensified global economic turmoil unleashed by Trump's tariffs. U.S. stocks ended a volatile week higher, but the safe haven of gold hit a record high during the session and benchmark U.S. 10-year government bond yields posted their biggest weekly increase since 2001 alongside a slump in the dollar, signaling a lack of confidence in America Inc. One U.S. survey of consumers showed inflation fears have mounted to their highest since 1981, while financial institutions have been forecasting an ever greater risk of recession. Trump downplayed the market turbulence, predicting the dollar would strengthen and saying his 10% across-the-board tariffs represented a floor in most cases as countries strike their own trade deals with Washington. "When people understand what we're doing, I think the dollar will go way up," he told reporters aboard Air Force One late on Friday. "The bond market's going good. It had a little moment but I solved that problem very quickly." The $29 trillion Treasury market saw an acute selloff following Trump's initial announcement about what he calls reciprocal tariffs. That turbulence was seen as part of what drove Trump to announce a 90-day pause for countries other than China on Wednesday. The White House has said since then that more than 75 countries have sought trade negotiations with the United States and that future deals would bring certainty. India and Japan are among the powers to have advanced toward trade talks, but generally foreign leaders have puzzled over how to respond to the biggest disruption to the world trade order in decades. The tit-for-tat tariff increases by the U.S. and China stand to make goods trade between the world's two largest economies impossible, analysts say. That commerce was worth more than $650 billion in 2024. "We pretty much can do what we want to do, but we want to be fair. We can set the tariff and they can choose not to deal with us or they can choose to pay it," Trump said on Air Force One, repeating his contention that U.S.-imposed tariffs are paid by foreign exporters. Although such levies can inflict pain on the exporter by making its products less competitive, tariffs are paid by the importer, which often passes the additional cost on to the consumer. Trump, who said on Friday he was comfortable with the tariffs on China, has suggested that a deal with Beijing could be in the offing, too, heaping praise on President Xi Jinping despite their differences over trade. But there were no signs that the world's two largest economies were ready to back down. "The president made it very clear: When the United States is punched, he will punch back harder," White House Press Secretary Karoline Leavitt told reporters on Friday. The market responded by punishing both the dollar and bond prices. Benchmark 10-year U.S. Treasury yields, which move opposite to price, registered their biggest weekly rise in more than two decades, with trading volumes well above average, amid fears that China may be offloading a large portion of its U.S. bond holdings. Treasury Secretary Scott Bessent is closely monitoring the bond market, Leavitt said. A second day of data on U.S. inflation showed price pressures were not yet building broadly across the U.S. economy, although the Producer Price Index for March did show industrial metals prices rising due to import levies on things like steel and aluminum, in place for a month now. "Tarifflation will be much more important for the outlook than backward-looking data," said Bill Adams, chief economist at Comerica Bank. "If tariffs stay in place they will push inflation considerably higher in coming months." The University of Michigan said its Consumer Sentiment Index dropped to 50.8 this month from 57.0 in March. Economists polled by Reuters had forecast the index falling to 54.5. In a reversal of previous surveys, the latest one also showed weakening confidence among Trump's fellow Republicans. Consumers' 12-month inflation expectations soared to 6.7% this month, the highest since 1981, from 5.0% in March, according to the survey. TRADE WAR WITH CHINA This week, Trump announced his reprieve for levies on dozens of countries while ratcheting up tariffs on Chinese imports effectively to 145%. China retaliated with more tariffs on Friday. China's finance ministry called Trump's tariffs "completely unilateral bullying and coercion." Beijing indicated this would be the last time it matched U.S. tariff rises but left the door open for other types of retaliation. "If the U.S. truly wants to have talks, it should stop its capricious and destructive behavior," Liu Pengyu, spokesperson for the Chinese embassy in the U.S., wrote on social media. "China will never bow to maximum pressure of the U.S." UBS analysts in a note called China's declaration "an acknowledgement that trade between the two countries has essentially been completely severed." Leavitt, in turn, delivered a warning to Beijing: "If China continues to retaliate, it's not good for China." On Thursday, Trump told reporters he thought the U.S. could make a deal with China. On Friday, Xi made his first public remarks on Trump's tariffs, telling Spanish Prime Minister Pedro Sanchez in Beijing that China and the European Union should "jointly oppose unilateral acts of bullying."
Yahoo
12-04-2025
- Business
- Yahoo
China retaliates again in Trump's trade war, prompting flight from US assets
By Joe Cash, Karin Strohecker and James Oliphant BEIJING/WASHINGTON/LONDON (Reuters) -Beijing increased its tariffs on U.S. imports to 125% on Friday, hitting back against President Donald Trump's decision to raise duties on Chinese goods and upping the stakes in a trade war that threatens to upend global supply chains. The retaliation intensified global economic turmoil unleashed by Trump's tariffs. U.S. stocks ended a volatile week higher, but the safe haven of gold hit a record high during the session and benchmark U.S. 10-year government bond yields posted their biggest weekly increase since 2001 alongside a slump in the dollar, signaling a lack of confidence in America Inc. One U.S. survey of consumers showed inflation fears have mounted to their highest since 1981, while financial institutions have been forecasting an ever greater risk of recession. Trump downplayed the market turbulence, predicting the dollar would strengthen and saying many tariffs could settle in around 10% once the United States cut trade deals with all the countries that want to negotiate. "When people understand what we're doing, I think the dollar will go way up," he told reporters aboard Air Force One late on Friday. "The bond market's going good. It had a little moment but I solved that problem very quickly." The White House has said more than 75 countries have sought negotiations and that future deals would bring certainty. India and Japan are among the powers to have advanced toward trade talks, but generally foreign leaders have puzzled over how to respond to the biggest disruption to the world trade order in decades. The tit-for-tat tariff increases by the U.S. and China stand to make goods trade between the world's two largest economies impossible, analysts say. That commerce was worth more than $650 billion in 2024. "The president made it very clear: When the United States is punched, he will punch back harder," White House Press Secretary Karoline Leavitt told reporters on Friday. The dollar slid and a sell-off intensified in U.S. Treasuries, the world's biggest bond market, as gold climbed. With the dollar weakening, selling of U.S. assets was perhaps most exemplified by t The price decline in the U.S. 10-year Treasury note. decline drove its yield - which moves opposite to the price and is critical for determining interest rates on mortgages - to a two-month high. On the week, its yield has climbed nearly half a percentage point. Treasury Secretary Scott Bessent is closely monitoring the bond market, Leavitt said. A second day of data on U.S. inflation showed price pressures were not yet building broadly across the U.S. economy, although the Producer Price Index for March did show industrial metals prices rising due to import levies on things like steel and aluminum, in place for a month now. "Tarifflation will be much more important for the outlook than backward-looking data," said Bill Adams, chief economist at Comerica Bank. "If tariffs stay in place they will push inflation considerably higher in coming months." The University of Michigan said its Consumer Sentiment Index dropped to 50.8 this month from 57.0 in March. Economists polled by Reuters had forecast the index falling to 54.5. In a reversal of previous surveys, the latest one also showed weakening confidence among Trump's fellow Republicans. Consumers' 12-month inflation expectations soared to 6.7% this month, the highest since 1981, from 5.0% in March, according to the survey. TRADE WAR WITH CHINA This week, Trump announced a 90-day tariff pause on dozens of countries while ratcheting up tariffs on Chinese imports effectively to 145%. China retaliated with more tariffs on Friday. China's finance ministry called Trump's tariffs "completely unilateral bullying and coercion." Beijing indicated this would be the last time it matched U.S. tariff rises but left the door open for other types of retaliation. "If the U.S. truly wants to have talks, it should stop its capricious and destructive behavior," Liu Pengyu, spokesperson for the Chinese embassy in the U.S., wrote on social media. "China will never bow to maximum pressure of the U.S." UBS analysts in a note called China's declaration "an acknowledgement that trade between the two countries has essentially been completely severed." Leavitt, in turn, delivered a warning to Beijing: "If China continues to retaliate, it's not good for China." On Thursday, Trump told reporters he thought the U.S. could make a deal with China and he respected Chinese President Xi Jinping. On Friday, Xi made his first public remarks on Trump's tariffs, telling Spanish Prime Minister Pedro Sanchez in Beijing that China and the European Union should "jointly oppose unilateral acts of bullying."
