Latest news with #ChinaTariffs
Daily Mail
3 days ago
- Business
- Daily Mail
Why Donald Trump's latest meltdown with Elon Musk will hit Australia
Donald Trump 's fallout with the world's richest man Elon Musk is set to hurt Australia economically because it could squeeze our exports to China. Musk became the 'First Buddy' as Trump was elected and led the Department of Government Efficiency - tasked with trying to find $US2trillion in savings - but the pair have traded barbs this week on their respective platforms, X and Truth Social. Multi-billionaire Musk owns the biggest stake in Tesla, which makes its electric cars in Shanghai, and was also the loudest critic of Trump's punitive tariff hikes against the communist superpower this year. Musk's absence from Trump's inner circle could huge ramifications for Australia if the US re-escalates its trade war with China - who, importantly, is the biggest buyer of our iron ore used to make steel. Professor Peter Dean, the director of foreign policy with the University of Sydney 's United States Studies Centre, said Trump would no longer hear the views of Musk, a businessman with strong ties to China. 'It's less likely [Trump would hold back on China tariffs] now that Elon Musk is out of government,' Prof Dean told Daily Mail Australia. 'Donald Trump will still continue to pursue the policies that he has, irrespective of what Elon says and Elon's influence on Trump has basically dissipated. 'What is Musk now? Musk is a businessman inside the United States like anybody else.' The Trump Administration in April slapped 145 per cent tariffs on China. While the US and China are in talks to substantially reduce them, Musk was clearly frustrated and predicted the American-led trade war would result in a recession in late 2025. 'The Trump Tariffs will cause a recession in the second half of this year,' he said on his social media platform X. Prof Dean said Trump's cabinet secretaries, with differing opinions on how to handle China, would no longer hear an alternative point of view within the administration. 'Elon Musk is connected to China in many, many ways that actually work against some of the views of President Trump and his team and particularly their tariffs on China,' he said. 'This is another area of concern that's caused this rift between Musk and between Trump. 'He was clearly not listening to Elon Musk's view on China and tariffs and he's even less likely to do now.' The fallout occurred just four months after Trump signed an executive order establishing DOGE, and putting Musk in charge with access to departmental files. 'There's a long history in the United States of billionaires and their involvement in politics - it normally always ends pretty quickly and it often doesn't end very well because of the personalities involved,' Prof Dean said. 'I'm actually in one way surprised it's last as long as it has.' Sarah Hunter, the Reserve Bank of Australia's assistant governor in charge of economic policy, said Australia would suffer from the US-China trade war if the Chinese government was too slow to put in place a stimulus package to spur demand. 'If this were to occur the income flows from commodity exports would fall significantly,' she told a Brisbane business lunch this week. Iron ore prices have plunged by 15 per cent, from $US112 to $US95.70 as of Friday afternoon, after the US doubled steel tariffs to 50 per cent, including on Australia. Weaker commodity prices reduce Australian government revenue from company taxes, leading to even bigger Budget deficits. This could in turn make Australian companies less likely to invest as consumers cut back on spending in an already weak economy. 'While key parts of Australia's export volumes may be relatively resilient to global demand conditions and uncertainty, domestic demand is unlikely to be completely insulated,' Ms Hunter said. 'Greater uncertainty about the future can lead households and businesses to save instead of spending and investing, and this is likely to be the case for Australian households and businesses too. 'And increased borrowing costs and risk premia in global financial markets are likely to spill into domestic markets, further weighing on activity.' Prof Dean said Trump's tariffs lacked any kind of strategy, with the American President having second thoughts about banning Chinese social media platform TikTok, despite concerns about spyware. 'He overturned the ban on TikTok because he personally likes TikTok,' he said.
New York Times
13-05-2025
- Business
- New York Times
Tariff Flip-Flops
President Trump made big promises with his China tariffs: China needs us more than we need it. America can outlast China in a trade war. Those advantages will let the administration get big concessions and rebalance global commerce. Trump's actions, however, suggest the talk was bluster. Yesterday, his administration cut its China tariffs from 145 percent to 30 percent for at least a few months. China will reciprocate by lowering its retaliatory levies from 125 percent to 10 percent. Both sides will keep talking. But China made no concessions. By now, most of us are familiar with this pattern: Trump makes big claims about what his tariffs can get, only for him to later back down without the other country giving up anything meaningful. It happened with Mexico, Canada and most of Trump's 'Liberation Day' levies. Despite his claims, America seems to need other countries' trade as much as they need ours, diminishing Trump's negotiating position. Today's newsletter explains. Price hikes and shortages Here's the problem: Trade is mutually beneficial. The buyer gets a good, and the seller makes a profit. The United States runs a trade deficit with China — it buys more than it sells — because Americans have the cash and want what China is selling. Trump's tariffs on China were so high that they were effectively an embargo that threatened to end all of those mutually beneficial transactions. That would cover a lot of goods — more than 70 percent of smartphones, laptops and toys — as well as manufacturing materials, particularly rare earth metals used in modern electronics. Retailers warned that prices would rise and shelves would go empty. Markets tumbled. The hits to the economy weakened Trump's negotiating position, and China knew it. Americans spent the last few years fuming about inflation and supply mishaps, and they would be furious if those problems continued. And unlike previous bouts of inflation that leaders could pin on the pandemic or the Ukraine war, this time it would clearly be Trump's fault. So China took a patient approach. Let prices rise and markets fall, and eventually Trump would have to give in. That strategy worked, at least for now. What remains Trump still has time to get some concessions out of China, which does not want to lose its biggest global customer. The concessions could be small. In the past, countries have given Trump minor compromises in response to tariffs — enough for him to save face, essentially — as when Canada vaguely promised to step up border enforcement earlier this year. In the meantime, tariffs remain much higher than they were before Trump's second term. When Trump ran for president, many economists warned that his promise of 10 percent tariffs on every other country would hurt the economy. Even after all of Trump's backpedaling, a 10 percent universal tariff is still in place. Duties on specific goods, such as cars, are even higher. Prices on clothes, appliances, video game consoles and everything else made in other countries will likely rise as a result. For more The most-clicked link in the newsletter yesterday was the remarkable inside story of how cardinals picked the new pope. It's always a feat to get skittish officials to confide in reporters. Yet Times journalists persuaded many Vatican leaders (sworn to secrecy on pain of excommunication!) to share how they narrowed three front-runners down to a single obvious choice. I asked Jason Horowitz, our Rome bureau chief, how they reported it out. — Adam B. Kushner I thought deliberations inside the Sistine Chapel were sacrosanct! Nobody said, 'I voted for X.' Nobody told us, 'The tally was within 10 votes and then Cardinal Robert Francis Prevost crept up.' Nobody gave a level of granular detail that could get them in trouble. But we used a lot of shoe-leather reporting — tracking cardinals down, finding them on the phone, leaning on relationships built over years. Each gave us a small kernel of detail. The combination revealed a picture of what happened. We learned how Prevost avoided politicking at dinner on the conclave's first night, how he held his head as the final votes were counted. What does the vow of secrecy cover, exactly? I think it's like how Justice Potter Stewart described obscenity — you know it when you see it. I didn't advise sources to cross an ethical line. One cardinal said it happened on the fourth vote, and maybe that stretches the rules. But it's just that we spoke to so many people that we could piece it together. It was more the collective work than one revelatory interview. Trump in the Middle East Government Overhaul More on the Trump Administration International Other Big Stories Young men are struggling, and we wanted to figure out just how badly and why. Boys enter kindergarten lagging behind girls in both academic readiness and behavior. A majority of teenagers agree that boys are more disruptive. Large shares say girls get better grades, have more leadership roles and speak up more in class. In interviews, young men say that school never felt like a good fit for them, or that they got the sense that teachers didn't like boys, and that this left them feeling discouraged or undervalued. By high school, girls are more likely to graduate on time — and more likely to go to college. Young men are struggling in their mental health and transitions to adulthood, too. What's going on here? I'm reporting a series on boys, the first installment of which published today. I'd love to hear your experiences and insights about what's going on with boys, and what might be driving it. Tell The Times what you think here. — Claire Cain Miller Trump's attempt to defund a lecture on freedom in Denmark by Joseph Stiglitz, a Columbia professor, shows that no program is safe, the professor writes. Here's a column by Michelle Goldberg on Trump's second nominee for surgeon general. Rivers, wildfires, lightning: A NASA astronaut recently spent 220 days at the International Space Station, where he captured the wonders visible from space. See his photos. TikTok stars: Oliver Widger quit his job, cashed in his 401(k) and bought a boat. Now he and his cat, Phoenix, are sailing around the world. Trending online yesterday: The rapper Tory Lanez was stabbed 14 times in a California prison. Lanez is serving a 10-year sentence for shooting Megan Thee Stallion. Lives Lived: Robert Shapiro was a law professor who became a brash corporate executive. He performed a marketing miracle by branding aspartame as the sugar substitute NutraSweet. Shapiro died at 86. N.B.A. Draft: The Mavericks won the league lottery and could draft Cooper Flagg. N.B.A.: The Knicks and Timberwolves are up 3-1 after wins over the Celtics and Warriors. N.H.L.: Edmonton and Carolina are both one win away from the conference finals. Electronic dance music is back. Festival lineups are filled with D.J.s, while the biggest names in pop — including Beyoncé and Charli XCX — have made albums inspired by dance. No one style of the genre has surged in popularity over the others: hard techno, drum and bass, Afro house and U.K. garage are all finding audiences. Read more about the renaissance — and the forces fueling it. Related: Want to get in on the scene? See where to club, which artists to follow and what songs to hear. More on culture Make Ina Garten's perfect roast chicken. She calls it 'the world's easiest dinner.' Experience more joy. Here are three tips. Clean your suede jacket. Here is today's Spelling Bee. Yesterday's pangram was unboxing. And here are today's Mini Crossword, Wordle, Connections, Sports Connections and Strands. Thanks for spending part of your morning with The Times. See you tomorrow. Sign up here to get this newsletter in your inbox. Reach our team at themorning@
Bloomberg
12-05-2025
- Business
- Bloomberg
China Tariff Relief Spurs Shipping Rush, U-Turn on Price Hikes
It may only be a 90-day reprieve from the steepest of Trump's China tariffs, but it's enough time to entice companies to restart factory operations and start shipping. Therabody, a Los Angeles-based maker of wellness products such as Theragun massagers, restarted manufacturing and is ramping up production again in China, Chief Executive Officer Monty Sharma said.
Yahoo
12-05-2025
- Business
- Yahoo
Sununu says Trump administration has ‘about 6 weeks' on China tariff deal to give market, small businesses confidence
Former New Hampshire Gov. Chris Sununu (R) said Sunday that the Trump administration has 'about six weeks' when it comes to a China tariff deal to give the market and small businesses 'confidence.' 'It sounds like they made some headway yesterday, but they've got about six weeks to really give the market and some of these small businesses confidence that it's not going to drag them down,' Sununu told CNN's Dana Bash on 'State of the Union' of President Trump's tariffs on China. During the first few months of his second term, Trump's tariff policy has strained relationships with trading partners such as China, Canada and the European Union and rattled global markets. Trump's tariffs on China have also increased fears that a U.S. recession could be coming On Friday, the president signaled he was willing to significantly bring down American tariffs on Chinese imports. In a post on his Truth Social platform, Trump said that an 80 percent tariff for China appeared to be the correct number, significantly lowering the import tax on Chinese goods from 145 percent. '80% Tariff on China seems right! Up to Scott B,' Trump said in his Friday post, referencing Treasury Department Secretary Scott Bessent. Trump also suggested Saturday a 'total reset' in U.S.-China trade relations might be possible amid talks over tariffs in Switzerland between the two countries. 'A very good meeting today with China, in Switzerland. Many things discussed, much agreed to. A total reset negotiated in a friendly, but constructive, manner. We want to see, for the good of both China and the U.S., an opening up of China to American business. GREAT PROGRESS MADE!!!' the president said in a post on his Truth Social platform. In his CNN appearance Friday, Sununu said that a recently announced trade deal between the U.K. and the U.S. 'definitely sets the groundwork for some of the future agreements' for the Trump administration on trade. The Hill has reached out to the White House, U.S. Trade Representative Jamieson Greer's office and the Treasury Department for comment Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Forbes
11-05-2025
- Business
- Forbes
U.S., China Trade Talks Make ‘Substantial Progress,' Bessent Says
U.S. Treasury Secretary Scott Bessent said the U.S. and China made 'substantial progress' in talks to diffuse the trade war between the two countries after President Donald Trump announced tariffs of 145% against China last month, multiple outlets reported Sunday. Treasury Secretary Scott Bessent testifies before the House Committee on Appropriations, ... More Subcommittee on Financial Services and General Government, oversight hearing of the U.S. Department of the Treasury on Capitol Hill in Washington, Tuesday, May 6, 2025. (AP Photo/Jose Luis Magana) More details will come Monday, Bessent said after talks concluded in Geneva on Sunday. Bessent said there was 'a great deal of productivity' in Sunday's talks, according to a clip posted by Trump's rapid response team. Sunday was the second day representatives—Bessent, U.S. Trade Representative Jamieson Greer, Chinese Vice Premier He Lifeng and two Chinese vice ministers—met to discuss trade policies. This story is developing and will be updated. Get Forbes Breaking News Text Alerts: We're launching text message alerts so you'll always know the biggest stories shaping the day's headlines. Text 'Alerts' to (201) 335-0739 or sign up here. More details from the talks. Bessent said Sunday 'there will be a complete briefing tomorrow morning.' US, China Made 'Substantial Progress' in Talks in Geneva (Bloomberg) Trump Floats 80% China Tariffs And 'Many' Other Deals—As U.S. And China Prepare For Trade Talks (Forbes)
