Latest news with #Claudia Sheinbaum
Zawya
2 days ago
- Business
- Zawya
Euro slips after Trump threatens 30% tariffs on EU
SINGAPORE: The euro fell to a three-week low early on Monday while the Mexican peso also came under pressure after U.S. President Donald Trump threatened to impose a 30% tariff on imports from two of the largest U.S. trading partners beginning August 1. Trump on Saturday announced the latest tariffs in separate letters to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum that were posted on his Truth Social media site. Both the European Union and Mexico described the tariffs as unfair and disruptive, while the EU said it would extend its suspension of countermeasures to U.S. tariffs until early August and continue to press for a negotiated settlement. Reaction in the currency market to Trump's latest tariff threats was largely muted in Asian trade, though the euro did slip to a roughly three-week low early in the session. The single currency later regained some ground and last traded 0.12% lower at $1.1679. Against the Mexican peso, the dollar rose 0.25% to 18.6699. Elsewhere, however, the dollar made limited gains, with sterling down just 0.07% at $1.3481, while the Japanese yen rose 0.1% to 147.28 per dollar. Investors have grown increasingly desensitised to Trump's slew of tariff threats, with his latest upheaval in the global trade landscape doing little to prevent U.S. stocks from scaling record highs and offering just a slight boost to the dollar. "It seems like financial markets have become insensitive to President Trump's tariff threats now, after so many of them in the past few months," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. "Judging by the limited market reaction, markets might think that the latest threat from Trump is actually a manoeuvre to extract more concessions." In other currencies, the Australian dollar fell 0.14% to $0.6565, while the New Zealand dollar slid 0.4% to $0.5984. Outside of tariff news, Trump on Sunday said that it would be a "great thing" if Federal Reserve Chair Jerome Powell stepped down, again threatening to undermine the central bank's independence as he called for interest rates to be lowered. Traders could get a better clue on the future path for U.S. rates when inflation data for June comes due on Tuesday, where expectations are for U.S. consumer prices to have picked up slightly last month. Markets are currently pricing in just over 50 basis points worth of Fed easing by December. In Asia, data on Monday showed China's exports regained momentum in June while imports rebounded, as exporters rushed out shipments to capitalise on a fragile tariff truce between Beijing and Washington ahead Trump's August deal deadline. Still, the figures did little to move the yuan, with the onshore unit little changed at 7.1704 per dollar. Its offshore counterpart edged up slightly to 7.1713 per dollar. Investors will be eyeing the release of Chinese gross domestic product figures on Tuesday next for greater clarity on the health of the world's second-largest economy. Growth in China is widely expected to have slowed down in the second quarter from a solid start to the year as trade tension with the United States added to deflationary pressure. (Reporting by Rae Wee; Editing by Lincoln Feast and Christopher Cushing)
Reuters
2 days ago
- Business
- Reuters
Euro eases after Trump threatens 30% tariffs on EU
SINGAPORE, July 14 (Reuters) - The euro fell to a three-week low on Monday while the Mexican peso also came under pressure after President Donald Trump threatened to impose a 30% tariff on imports from two of the largest U.S. trading partners beginning August 1. Trump on Saturday announced the latest tariffs in separate letters to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum that were posted on his Truth Social media site. Both the European Union and Mexico described the tariffs unfair and disruptive, while the E.U. said it would extend its suspension of countermeasures to U.S. tariffs until early August and continue to press for a negotiated settlement. Reaction in the currency market to Trump's latest tariff threats was largely muted in the early Asian session, though the euro did slip to a roughly three-week low and last traded 0.15% lower at $1.1675. Against the Mexican peso , the dollar rose 0.2% to 18.6630. Elsewhere, however, the dollar made limited gains, with sterling down just 0.04% to $1.3485, while the Japanese yen rose 0.1% to 147.27 per dollar. Investors have grown increasingly desensitised to Trump's slew of tariff threats, with his latest upheaval in the global trade landscape doing little to prevent U.S. stocks from scaling record highs and offering just a slight boost to the dollar. "It is hard to say whether the muted market response over the week is best characterised by resilience or complacency," said Taylor Nugent, senior economist at National Australia Bank. "But it is difficult to price the array of headlines purportedly defining where tariffs will sit from August 1 when negotiations are ongoing and the key substantive development recently is that the earlier July 9 reciprocal tariff deadline came and went without an increase in tariff rates." In other currencies, the Australian dollar ticked up 0.02% to $0.6575, while the New Zealand dollar fell 0.07% to $0.6004. Outside of tariff news, Trump on Sunday said that it would be a great thing if Federal Reserve Chair Jerome Powell stepped down, again threatening to undermine the central bank's independence as he calls for interest rates to be lowered. Traders could get a better clue on the future path for U.S. rates when inflation data for June comes due on Tuesday, where expectations are for U.S. consumer prices to have picked up slightly last month. Markets are currently pricing in just over 50 basis points worth of Fed easing by December. Also on investors' radars will be the release of Chinese gross domestic product figures similarly out on Tuesday. The world's second-largest economy is expected to have slowed down in the second quarter from a solid start to the year as trade tensions with the United States added to deflationary pressures.
Yahoo
2 days ago
- Business
- Yahoo
Euro eases after Trump threatens 30% tariffs on EU
By Rae Wee SINGAPORE (Reuters) -The euro fell to a three-week low on Monday while the Mexican peso also came under pressure after President Donald Trump threatened to impose a 30% tariff on imports from two of the largest U.S. trading partners beginning August 1. Trump on Saturday announced the latest tariffs in separate letters to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum that were posted on his Truth Social media site. Both the European Union and Mexico described the tariffs unfair and disruptive, while the E.U. said it would extend its suspension of countermeasures to U.S. tariffs until early August and continue to press for a negotiated settlement. Reaction in the currency market to Trump's latest tariff threats was largely muted in the early Asian session, though the euro did slip to a roughly three-week low and last traded 0.15% lower at $1.1675. Against the Mexican peso, the dollar rose 0.2% to 18.6630. Elsewhere, however, the dollar made limited gains, with sterling down just 0.04% to $1.3485, while the Japanese yen rose 0.1% to 147.27 per dollar. Investors have grown increasingly desensitised to Trump's slew of tariff threats, with his latest upheaval in the global trade landscape doing little to prevent U.S. stocks from scaling record highs and offering just a slight boost to the dollar. "It is hard to say whether the muted market response over the week is best characterised by resilience or complacency," said Taylor Nugent, senior economist at National Australia Bank. "But it is difficult to price the array of headlines purportedly defining where tariffs will sit from August 1 when negotiations are ongoing and the key substantive development recently is that the earlier July 9 reciprocal tariff deadline came and went without an increase in tariff rates." In other currencies, the Australian dollar ticked up 0.02% to $0.6575, while the New Zealand dollar fell 0.07% to $0.6004. Outside of tariff news, Trump on Sunday said that it would be a great thing if Federal Reserve Chair Jerome Powell stepped down, again threatening to undermine the central bank's independence as he calls for interest rates to be lowered. Traders could get a better clue on the future path for U.S. rates when inflation data for June comes due on Tuesday, where expectations are for U.S. consumer prices to have picked up slightly last month. Markets are currently pricing in just over 50 basis points worth of Fed easing by December. Also on investors' radars will be the release of Chinese gross domestic product figures similarly out on Tuesday. The world's second-largest economy is expected to have slowed down in the second quarter from a solid start to the year as trade tensions with the United States added to deflationary pressures. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Trump announces 30% tariffs against EU, Mexico to begin Aug. 1, rattling major US trading partners
President Donald Trump on Saturday announced he's levying tariffs of 30% against the European Union and Mexico starting Aug. 1, a move that could cause massive upheaval between the United States and two of its biggest trade partners. Trump detailed the planned tariffs in letters posted to his social media account. They are part of an announcement blitz by Trump of new tariffs with allies and foes alike, a bedrock of his 2024 campaign that he said would set the foundation for reviving a U.S. economy that he claims has been ripped off by other nations for decades. In his letter to Mexico's leader, President Claudia Sheinbaum, Trump acknowledged that the country has been helpful in stemming the flow of undocumented migrants and fentanyl into the United States. But he said the country has not done enough to stop North America from turning into a 'Narco-Trafficking Playground.' 'Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough,' Trump added. Trump in his letter to the European Union said that the U.S. trade deficit was a national security threat. 'We have had years to discuss our Trading Relationship with The European Union, and we have concluded we must move away from these long-term, large, and persistent, Trade Deficits, engendered by your Tariff, and Non-Tariff, Policies, and Trade Barriers,' Trump wrote in the letter to the EU. 'Our relationship has been, unfortunately, far from Reciprocal.' The letters come in the midst of an on-and-off Trump threat to impose tariffs on countries and right an imbalance in trade. Trump in April imposed tariffs on dozens of countries, before pausing them for 90 days to negotiate individual deals. As the three-month grace period ended this week, Trump began sending his tariff letters to leaders but again has pushed back the implementation day for what he says will be just a few more weeks. If he moves forward with the tariffs, it could have ramifications for nearly every aspect of the global economy. European Union Commission President Ursula von der Leyen responded by noting the bloc's 'commitment to dialogue, stability, and a constructive transatlantic partnership.' 'At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required,' von der Leyen said in a statement. Von der Leyen added that the EU remains committed to continuing negotiations with the U.S. and coming to an agreement before Aug. 1. Trade ministers from EU countries are scheduled to meet Monday to discuss trade relations with the U.S., as well as with China. European leaders joined von der Leyen in urging Trump to give negotiations more time and warnings of possible new tariffs on Washington. 'With European unity, it is more than ever up to the Commission to assert the Union's determination to resolutely defend European interests,' French President Emmanuel Macron said in a statement posted on X. Italian Premier Giorgia Meloni's office said 'it would make no sense to trigger a trade war between the two sides of the Atlantic.' Danish Foreign Minister Lars Løkke Rasmussen told broadcaster DR that Trump was taking a 'pointless and a very short-sighted approach.' Swedish Prime Minister Ulf Kristersson warned in an interview with SVT that 'everyone loses out from an escalated trade conflict, and it will be U.S. consumers who pay the highest price.' The Mexican government said it was informed during high-level talks with U.S. State Department officials Friday that the Trump letter was coming. The delegation told Trump officials at the meeting it disagreed with the decision and considered it 'unfair treatment,' according to a Mexican government statement. Trump, as he has in previous letters, warned that his administration would further raise tariffs if the EU attempts to hike its own tariffs on the United States. With the reciprocal tariffs, Trump is effectively blowing up the rules governing world trade. For decades, the United States and most other countries abided by tariff rates set through a series of complex negotiations known as the Uruguay round. Countries could set their own tariffs, but under the 'most favored nation'' approach, they couldn't charge one country more than they charged another. The Mexico tariff, if it goes into effect, could replace the 25% tariffs on Mexican goods that do not comply with the existing U.S.-Mexico-Canada free trade agreement. Trump's letter did not address if USMCA-compliant goods would still be exempt from the Mexico tariffs after Aug. 1, as the White House said would be the case with Canada. Trump sent a letter to Canada earlier this week threatening a 35% tariff hike. With Saturday's letters, Trump has now issued tariff conditions on 24 countries and the 27-member European Union. European leaders had held out hope that they would avoid receiving a Trump tariff letter, and that a deal would be worked out. The European Union's chief trade negotiator, Maroš Šefčovič, said earlier this week that a trade deal to avert higher tariffs on European goods imported to the U.S. could be reached 'even in the coming days.' The bloc collectively sells more to the U.S. than any other country. U.S. goods imports from the EU topped $553 billion in 2022, according to the Office of the U.S. Trade Representative. Douglas Holtz-Eakin, a former Congressional Budget Office director and president of the center-right American Action Forum, said the letters were evidence that serious trade talks were not taking place over the past three months. He stressed that nations were instead talking amongst themselves about how to minimize their own exposure to the U.S. economy and Trump. 'They're spending time talking to each other about what the future is going to look like, and we're left out,' Holtz-Eakin said. He added that Trump was using the letters to demand attention, but, 'In the end, these are letters to other countries about taxes he's going to levy on his citizens.' If the tariffs do indeed take effect, the potential impact on Europe could be vast. The value of EU-U.S. trade in goods and services amounted to 1.7 trillion euros ($2 trillion) in 2024, or an average of 4.6 billion euros a day, according to EU statistics agency Eurostat. Europe's biggest exports to the U.S. were pharmaceuticals, cars, aircraft, chemicals, medical instruments and wine and spirits. Lamberto Frescobaldi, president of the Union of Italian Wines trade association, said Trump's move could lead to 'a virtual embargo' of his country's wine. 'A single letter was enough to write the darkest chapter in relations between two historic Western allies,' Frescobaldi said. 'At this point, our fate and that of hundreds of thousands of jobs are tied to the extra time, which will be crucial, because it is unthinkable to be able to sell these volumes of wine elsewhere in the short term.' Trump has complained about the EU's 198 billion-euro trade surplus in goods, which shows Americans buy more goods from European businesses than the other way around. However, American companies fill some of the gap by outselling the EU when it comes to services such as cloud computing, travel bookings, and legal and financial services. The U.S. services surplus took the nation's trade deficit with the EU down to 50 billion euros ($59 billion), which represents less than 3% of overall U.S.-EU trade. Download the FREE WPXI News app for breaking news alerts. Follow Channel 11 News on Facebook and Twitter. | Watch WPXI NOW
Yahoo
3 days ago
- Business
- Yahoo
Trump Patience on Tariffs Runs Thin as Nations Jostle for Deals
(Bloomberg) -- US trading partners trying to navigate the final weeks of negotiations before President Donald Trump's so-called reciprocal tariffs hit are facing a leader who has made clear he's lost patience with talks. Singer Akon's Failed Futuristic City in Senegal Ends Up a $1 Billion Resort Why Did Cars Get So Hard to See Out Of? Can Americans Just Stop Building New Highways? How German Cities Are Rethinking Women's Safety — With Taxis Philadelphia Trash Piles Up as Garbage Workers' Strike Drags On Even as negotiators from Brussels to New Delhi are racing to find a way out of the punishing levies he's floated, Trump continued to send letters unilaterally setting rates — while still allowing for a little wiggle room. Early Saturday, Trump posted letters sent to Mexican President Claudia Sheinbaum and European Commission President Ursula von der Leyen, declaring a 30% rate for Mexico and the European Union beginning Aug. 1. He said Mexico had failed to do enough to stop the flow of fentanyl into the US and complained that the EU's trade deficit with the US was unfair. He suggested both partners could take steps to mitigate the rates — or he could increase them further if he didn't like their responses. Efforts by those countries and others to find an escape from the punishing levies are expected to intensify next week ahead of a new Aug. 1 deadline for many of the import taxes to kick in. US Treasury Secretary Scott Bessent is heading to Japan and EU negotiators are focusing their attention on cars and agricultural tariffs in hopes of securing at least a provisional agreement. The days ahead could also bring a fresh flurry of unilateral missives from the White House setting tariff levels on countries the president has determined no longer worthy of talks. Summer of Drama A dramatic stretch in Trump's trade war has seen some of the biggest developments yet in his tariff campaign, underscoring the risks for trading partners and raising the stakes before what the president insists is his final deadline. His impatience erupted over recent days as he teed up a frenzied wave of tariffs for Aug. 1, hitting longtime allies like Japan and South Korea, which had struggled with negotiations because of internal political pressures, raising some rates on neighboring Canada despite Prime Minister Mark Carney's charm offensive, and slapping an eye-popping 50% rate on goods from Brazil over unrelated political disputes. The message was clear: Trump intends to make good on his threat to abandon painstaking negotiations and just set unilateral rates — and that a fresh barrage of tariffs are coming, not unlike the April announcement that spurred a market selloff. For nations dependent on US trade, the window is quickly closing to determine how best to negotiate the impossible choice presented by Trump's maximalist stance: bend the knee or dig in for a fight. The president himself has repeatedly said he'd prefer unilateral rates and the only thing stopping him was pleas from Bessent and other aides for patience. 'The real question is will Trump accept what they have on the table? Will they put a little more on the table? Where will it come out?' Wilbur Ross, Trump's first-term commerce secretary, told Bloomberg Television Thursday. 'But worse comes to worst, he is fully prepared to go through with the tariffs and have that be the end of the story.' Trump opened the week by extending the July 9 tariff deadline to Aug. 1 and renewing his threat to Japan and South Korea, where talks have dragged. At a cabinet meeting, Bessent boasted about the flood of taxes being collected from importers. The president has bristled at what's been called the 'TACO trade,' with markets betting that 'Trump always chickens out' on tariff threats, and insisted this extension would be the last. He also announced his long-simmering copper tariff, setting it at 50% and saying it would be enacted Aug. 1 — a levy poised to capture a wide range of derivative products. He also threatened a 200% pharmaceutical levy. 'I assume that what we are seeing here is a negotiating tactic,' said Lars Suedekum, a personal economic adviser to German Finance Minister Lars Klingbeil. 'We have seen this many times in recent weeks: customs announcements followed by suspensions and customs breaks. It's been quite a back and forth. I see no reason why it should be any different this time.' Still, the extension set off another frenzied struggle with nations hopeful they could sway a president whose tariff agenda has moved in fits-and-starts and reversals. India has been making progress on an interim trade deal that could reduce its proposed tariffs to below 20%, people familiar with the matter said, adding that New Delhi does not expect to receive a tariff demand letter. Even with Bessent headed to Japan, the prospect of a breakthrough is unclear and the US is awaiting a better offer from Tokyo, an American official said. White House trade adviser Peter Navarro on Friday encouraged another country facing higher tariffs, Canada, to keep talking, underscoring that the door remains open to negotiations. 'I would urge the Canadian citizens to urge their leaders to negotiate fairly with us,' he told Bloomberg Television on Friday. Widening Clashes Trump's letters announcing tariffs to individual countries were initially boilerplate, distributed to partners he'd hit with elevated tariffs in his April 2 'Liberation Day' announcement, all of which run trade surpluses with the US. But his targets have widened: He threatened a 50% rate on Brazil, pressuring that country to stop legal proceedings against his ally, Jair Bolsonaro, a major escalation demonstrating how Trump has weaponized trade powers for unrelated disputes. The move also signaled that Trump would apply elevated rates even to countries, like Brazil, with which the US runs a goods trade surplus. He's also been stepping up his threats against BRICS nations, vowing extra levies even if they reach some kind of accord with him. Where Does President Trump's Tariff Campaign Stand? QuickTake The 35% tariff on Canada hit one of the biggest American trading partners and a country that was not facing an imminent tariff hike, like other recipients of his letters. That increase, though, is not poised to apply to energy products, which will remain at a 10% rate, or goods compliant with the USMCA trade pact. Trump also signaled to NBC in an interview that he might simply raise blanket tariffs to 15% or 20%, up from 10% now for nearly all trading partners, though it's not clear how widely that move would apply. Uncertain Deals Trump's White House once pledged 90 deals in 90 days, but has so far only reached agreements with the UK, Vietnam and a truce lowering tariffs with China — all with caveats. The China deal allowed the two economies to de-escalate but left many issues unresolved, while the agreement with the UK faces uncertainty over metals tariffs. While Trump touted a deal with Vietnam, that announcement surprised the country's leadership with a higher rate than they expected, making it more akin to his unilateral letters than a mutually agreed pact. 'I worry that we could have a situation — and I don't know that it'll be on Aug. 1 or the future — but we'd have a situation where he's not bluffing, but everyone thinks he is bluffing,' said Michael Strain, director of economic policy at the American Enterprise Institute, a conservative think tank. 'The more times that happens, the more worried I get that the next up will be a real deadline.' --With assistance from Kamil Kowalcze. Trump's Cuts Are Making Federal Data Disappear 'Our Goal Is to Get Their Money': Inside a Firm Charged With Scamming Writers for Millions Will Trade War Make South India the Next Manufacturing Hub? Soccer Players Are Being Seriously Overworked Trade War? No Problem—If You Run a Trade School ©2025 Bloomberg L.P. Sign in to access your portfolio
