Latest news with #HAS
Mint
3 days ago
- Business
- Mint
Donald Trump-Xi Jinping call ‘likely' this week, says White House, amid stalled trade tariff talks
US President Donald Trump and Chinese President Xi Jinping are expected to speak this week, according to White House Press Secretary Karoline Leavitt. The call would come amid rising tensions after Trump accused Beijing of breaching last month's tariff rollback agreement, reached in Geneva, and Beijing asserting that Washington 'has made bogus charges and unreasonably accused China of violating the consensus". Leavitt is the third senior Trump official in recent days to suggest a phone call is imminent. The exact date and time of the conversation remain unconfirmed. A temporary US-China agreement to suspend tariffs for 90 days triggered a strong relief rally in global stock markets. Earlier this month, the two sides agreed to a temporary easing of trade tensions. China cut tariffs on American goods from 125% to 10% for 90 days, while the US proposed reducing its tariffs on Chinese imports from 145% to 30%. Despite this breakthrough, progress has since stalled amid new disputes, including US export controls on AI chips and the revocation of Chinese student visas. China warned that if the US continues on its current path, it 'will continue to resolutely take strong measures to uphold its legitimate rights and interests.' However, the temporary ceasefire failed to address fundamental US grievances over China's export-driven, state-led economic practices. These include issues like forced technology transfers, industrial subsidies, and limited market access for foreign firms. While the short-term tariff freeze offers breathing room, it leaves the more complex issues to be hashed out in future negotiations. Trump reignited the US-China trade war on Friday with an explosive post on Truth Social, accusing Beijing of failing to honor the recent tariff rollback agreement. 'The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!' Trump wrote. Trump did not provide specific details about how China allegedly broke the deal, but claimed the violations were severe and deliberate. The comments come less than a month after both nations agreed in Geneva to reduce tit-for-tat tariffs for a 90-day cooling-off period. In the same post, Trump claimed his aggressive tariffs had left China's economy 'in grave danger,' leading to factory closures and unrest. 'Two weeks ago China was in grave economic danger! The very high Tariffs I set made it virtually impossible for China to TRADE into the United States marketplace,' he said. He further claimed that a wave of 'mild civil unrest' in China prompted him to pursue a quick resolution. 'I saw what was happening and didn't like it, for them, not for us. I made a FAST DEAL with China in order to save them… and I didn't want to see that happen,' Trump added. China's Commerce Ministry responded swiftly and sharply, rejecting Trump's accusations and reaffirming its commitment to the Geneva consensus. 'China has been firm in safeguarding its rights and interests, and sincere in implementing the consensus,' the ministry said, according to AFP. Beijing also accused Washington of 'unreasonably' blaming China while taking discriminatory actions of its own. 'Washington has made bogus charges and unreasonably accused China of violating the consensus, which is seriously contrary to the facts,' the statement said. 'We urge the U.S. to meet China halfway, immediately correct its wrongful actions, and jointly uphold the consensus from the Geneva trade talks.' With President Trump and Chinese leader Xi Jinping expected to speak in the coming days, the future of the trade truce hangs in the balance. Trump's accusations and Beijing's stern rebuttal signal that tensions remain high despite diplomatic efforts. Separately, the US trade court ruled on Wednesday that President Donald Trump exceeded his legal authority by using emergency powers to impose the majority of his tariffs on Chinese and other foreign goods. The ruling cast doubt on the legality of the broader tariff regime enacted during the Trump administration. But in a swift reversal, a federal appeals court temporarily reinstated those tariffs less than 24 hours later. The court issued a stay on the lower court's decision while it reviews the government's appeal. It set a fast-track schedule, ordering the plaintiffs to respond by June 5 and the Biden administration to reply by June 9.
Global News
3 days ago
- Business
- Global News
U.S. restrictions on AI chips, student visas ‘violate' tariffs truce: China
China criticized the U.S. on Monday over moves it alleged harmed Chinese interests, including issuing AI chip export control guidelines, stopping the sale of chip design software to China, and planning to revoke Chinese student visas. 'These practices seriously violate the consensus,' the Commerce Ministry said in a statement, referring to a China-U.S. joint statement in which the United States and China agreed to slash their massive recent tariffs, restarting stalled trade between the world's two biggest economies. But last month's de-escalation in President Donald Trump's trade wars did nothing to resolve underlying differences between Beijing and Washington and Monday's statement showed how easily such agreements can lead to further turbulence. The deal lasts 90 days, creating time for U.S. and Chinese negotiators to reach a more substantive agreement. But the pause also leaves tariffs higher than before Trump started ramping them up last month. And businesses and investors must contend with uncertainty about whether the truce will last. Story continues below advertisement U.S. Trade Representative Jamieson Greer said the U.S. agreed to drop the 145 per cent tax Trump imposed last month to 30 per cent. China agreed to lower its tariff rate on U.S. goods to 10 per cent from 125 per cent. 1:26 China slams Trump's 'Golden Dome', says it risks an arms race The Commerce Ministry said China held up its end of the deal, canceling or suspending tariffs and non-tariff measures taken against the U.S. 'reciprocal tariffs' following the agreement. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'The United States has unilaterally provoked new economic and trade frictions, exacerbating the uncertainty and instability of bilateral economic and trade relations,' while China has stood by its commitments, the statement said. It also threatened unspecified retaliation, saying China will 'continue to take resolute and forceful measures to safeguard its legitimate rights and interests.' Trump stirred further controversy Friday, saying he will no longer be nice with China on trade, declaring in a social media post that the country had broken an agreement with the United States. Story continues below advertisement Hours later, Trump said in the Oval Office that he will speak with Chinese President Xi Jinping and 'hopefully we'll work that out,' while still insisting China had violated the agreement. 'The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,' Trump posted. 'So much for being Mr. NICE GUY!' In response to recent comments by Trump, the Commerce Ministry said of the U.S.: 'Instead of reflecting on itself, it has turned the tables and unreasonably accused China of violating the consensus, which is seriously contrary to the facts.' 1:55 China won 1st round of trade war with U.S., analysts say U.S. Commerce Secretary Howard Lutnick said that the Chinese were 'just slow rolling the deal' from Geneva. Appearing on Fox News on Sunday, Lutnick said the U.S. was 'taking certain actions to show them what it feels like on the other side of that equation,' adding that Trump would 'work it out' with Xi. Story continues below advertisement The Trump administration also stepped up the clash with China in other ways last week, announcing that it would start revoking visas for Chinese students studying in the U.S. U.S. campuses host more than 275,000 students from China. Both countries are in a race to develop advanced technologies such as artificial intelligence, with Washington seeking to curb China's access to the most advanced computer chips. China is also seeking to displace the U.S. as the leading power in the Asia-Pacific, including through gaining control over close U.S. partner and leading tech giant Taiwan.
Yahoo
3 days ago
- Business
- Yahoo
Trump tariffs live updates: China responds to Trump accusing the US of violating the trade truce
China responded to President Trump on Monday, accusing the US of violating their trade agreement and vowing to protect its interests, making it less likely that Trump will get the leadership call he wants to restart trade talks. 'If the US insists on its own way and continues to damage China's interests, China will continue to take resolute and forceful measures to safeguard its legitimate rights and interests,' the Chinese Ministry of Commerce said. Beijing accused the US of introducing discriminatory restrictions, which include new guidelines on AI chip export controls and the withdrawal of Chinese student visas. China's salvo came days after Trump lashed out at China on Truth Social, saying China had "violated" its trade deal with the US. "The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!" Trump wrote. Later in the Oval Office, he hinted he planned to speak with Chinese leader Xi Jinping. The escalation comes as the US-China detente — reached earlier this month, when each country eased sky-high tariffs on the other — looks more fragile amid both trade-related and other tensions. Meanwhile, Trump said at a rally in Pennsylvania on Friday that he is going to double tariffs on steel imports from 25% to 50%. The hike, the president said, "will even further secure the steel industry in the United States." Trump's most sweeping tariffs face legal uncertainty after a federal appeals court allowed the tariffs to temporarily stay in effect, a day after the US Court of International Trade blocked their implementation, deeming the method used to enact them "unlawful." That means Trump's tariff agenda remains intact, if in flux, in the latest twist in the unfolding legal saga that Trump said Friday he was confident he would "win." The White House has vowed to take its appeal to the Supreme Court if necessary. Administration officials also hinted that court rulings would not be the final say. Yahoo Finance's Ben Werschkul has an overview of the other maneuvers Trump could pursue. Here are the latest updates as the policy reverberates around the world. China has hit back at President Trump, accusing the US of violating their recent trade agreement, making it less likely that Trump will get the leadership call he wants to restart trade talks between the two sides. On Monday, the Chinese Ministry of Commerce said in a statement that the US had introduced discriminatory restrictions, including new guidelines on AI chip export controls, curbs on chip design software sales to China, and the withdrawal of Chinese student visas. Beijing also rebuked the US president's claim that China had breached the agreement reached in Geneva last month. 'If the US insists on its own way and continues to damage China's interests, China will continue to take resolute and forceful measures to safeguard its legitimate rights and interests,' the ministry said. China's response to the US follows Trump's claims on Friday that China had violated the trade truce. "The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!" Trump wrote. But is Trump's tough talk just that — talk? As Yahoo Finance's senior reporter Alexandra Canal points out, amid all the US-China tensions, many investors believe the president talks tough on tariffs but always backs down. In the midst of the chaos, one phrase kept surfacing across Wall Street: the "TACO" trade. An acronym for "Trump Always Chickens Out," That assumption has fueled a market tailwind in recent months as traders bet on policy pivots, buoyed by an initial US-China tariff deescalation earlier this month. Yahoo Finance senior columnist Rick Newman said: "The only problem with the TACO trade is that the premise isn't true. Trump doesn't always chicken out. His threats are often worse than his actions, but five months into Trump's term, it is abundantly clear that taxes on imports will be considerably higher for as long as Trump is in charge." Yahoo Finance's Ben Werschkul reports: Read more here. AP reports: Read more here. Aluminium (ALI=F) prices for US buyers jumped on Monday after President Trump said he planned to increase tariffs on imported steel and aluminium from 25% to 50%. Reuters reports: Read more here. President Trump's tariffs have brought more twists and turns over the last week for small businesses, with many having to cut staff hours and angry at how the government has treated them. CNN reports: Read more here. Prime Minister Mark Carney wants Canadian provinces to trade more freely with each other in a bid to help reduce the economic harm from Trump's tariffs. Bloomberg News reports: Read more here. Reuters reports: Read more here. Between tariff pauses and court rulings, President Trump's trade agenda remains in limbo. But there are some key dates and events arriving in the coming months that may offer more clarity on the path of tariff rates. Here's a timeline compiled by Reuters of dates to pay attention to: June 5: The date by which the plaintiffs in the tariffs case are required to respond to the US federal appeals court, which reinstated most of Trump's tariffs on May 30. June 9: The deadline for the Trump administration to respond to the appeals court. June 15-17: Trump will attend the annual G7 Leaders' Summit in Alberta, Canada. Tariffs are expected to be a major topic of discussion. July 8: "Liberation Day" tariffs are scheduled to resume following the 90-day pause, potentially affecting imports from multiple countries. July 9: The deadline for the US and the EU to negotiate a trade agreement. If no deal is reached, the US will impose an across-the-board 50% tariff on EU imports. July 14: The EU's 90-day pause on its own retaliatory tariffs to end. Read more here. President Donald Trump's doubling of tariffs on foreign steel and aluminum could hit Americans in an unexpected place: grocery aisles. The announcement Friday of a staggering 50% levy on those imports stoked fear that big-ticket purchases from cars to washing machines to houses could see major price increases. But those metals are so ubiquitous in packaging, they're likely to pack a punch across consumer products from soup to nuts. 'Rising grocery prices would be part of the ripple effects,' says Usha Haley, an expert on trade and professor at Wichita State University, who added that the tariffs could raise costs across industries and further strain ties with allies 'without aiding a long-term U.S. manufacturing revival.' Read more here U.S. Commerce Secretary Howard Lutnick downplayed the impact of legal uncertainty around U.S. tariffs on negotiations with the European Union during an interview with Fox News Sunday, saying talks were ongoing. Lutnick was asked about a Reuters report quoting an unnamed EU official close to negotiations who said the legal uncertainty of the tariffs in the U.S. gave the E.U. "extra leverage." "You can't listen to silly people making silly comments," Lutnick said. "All of the countries that are negotiating with us understand the power of Donald Trump and his ability to protect the American worker." Read more here Affordable cosmetics company e.l.f. Beauty (ELF) has long relied on China to keep its prices low and create value-oriented "dupes" of higher-end products. Now, President Trump's economic agenda is putting that model to the test. E.l.f. sources 75% of its products from China, making it highly exposed to higher costs from Trump's tariffs (though less so than in 2019, when the company sourced 100% of its products from the country). In addition to the broad-based tariffs Trump has levied in his second term, e.l.f. faces a 25% tariff on its China-sourced products that Trump levied in 2019. With the most recent 30% tariffs that Trump imposed on Chinese goods, which are undergoing legal scrutiny, e.l.f.'s product imports to the US were subject to tariffs at the 55% level. Unlike other companies that have vocally pivoted to American onshoring to avoid being singled out by the president, CEO Tarang Amin said on the company's earnings call that e.l.f. remains committed to its Chinese suppliers. "We believe our unique China-based supply chain is an area of competitive advantage we've been honing for the past 21 years," Amin said. "It underpins our value proposition, delivering the best combination of quality, cost, and speed in our industry. We're ... committed to our China team and suppliers." Read more here A legal argument that the US Supreme Court used to foil Joe Biden on climate change and student debt now looms as a threat to President Donald Trump's sweeping tariffs. During Biden's presidency, the court's conservative majority ruled that federal agencies can't decide sweeping political and economic matters without clear congressional authorization. That blocked the Environmental Protection Agency from setting deep limits on power-plant pollution and the Education Department from slashing student loans for 40 million people. The concept — known as the 'major questions doctrine' — is now playing a central role in the case against Trump's unilateral imposition of worldwide import taxes. With Supreme Court review all but inevitable, the justices' willingness to employ the doctrine against Trump may determine the fate of his signature economic initiative. Read more here The Financial Times reports that the strain of President Donald Trump's tariffs has taken its toll on the friendly cross-border relationship between Windsor, Ontario and Detroit, Michigan: Read more here (premium) Gap (GAP) CEO Richard Dickson told Yahoo Finance's Brian Sozzi that Trump's trade war has not derailed the company's turnaround plans. "Like any business, we're constantly navigating complexity," Dickson added. "There's a lot of complexities in running a business. And in this case, tariffs is a focus. But it's our responsibility to do so without ever compromising the long-term integrity of our strategy." Gap stock plunged about 20% on Friday after the apparel company reported first quarter results. While the company beat estimates on the top and bottom lines, it warned tariff-related expenses could add up to $300 million this year. Some analysts estimated those costs could translate to an earnings hit of about $0.25 a share. Gap said it's continuing to shift away from China and diversify its supply chain more broadly. By the end of 2026, the company said no single country would represent more than 25% of its sourcing. Read more here. President Trump is looking to former President Nixon as proof that his global tariffs should be allowed to stand in court. Roughly five decades ago, 10% duties unilaterally imposed by the 37th president as part of a set of economic measures dubbed the "Nixon shock" were challenged in court in much the same way as Trump's 2025 tariffs have been. The US Court of International Trade struck down many of Trump's tariffs Wednesday, just as Nixon's duties suffered an initial defeat. An appeals court on Thursday allowed Trump's duties to temporarily stay in place while legal arguments continue. What has emboldened the Trump administration is that the Nixon-era Justice Department eventually won its case on appeal, an outcome the Trump administration cited in court documents this week, predicting that its legal saga would likely turn out the same way. It told the US Court of Appeals for the Federal Circuit that "the Federal Circuit's predecessor concluded that the very same language that today exists" in a law used by Trump to justify his tariffs "gave President Nixon the power to impose an import duty surcharge." Read the full story here. President Trump said that although he gave US automakers "some leeway" with tariffs, he expects automakers to fully bring back domestic auto manufacturing in the next year. "All of the manufacturers will build their parts here too," Trump told reporters in the Oval Office in response to a question about tariffs affecting companies like Tesla (TSLA). Of note, Tesla is considered to have the highest percentage of "Made in America" parts, though no car is 100% made in the US. Tesla's long-range Model Y and Model 3 vehicles contain 87.5% "total domestic content," according to a 2024 study by Kelley Blue Book. "It used to bother me, [automakers] make a part in Canada, a part in Mexico, a part in Europe, and sent all over the place, and nobody knew what the hell was happening," Trump continued. "I think you build a car, make it in America. ... over the next year, they've got to have the whole thing built in America." The US imposed auto tariffs of 25% on May 3, but the Trump administration carved out an exemption for some auto parts tariffs, stating that they would not be stacked on top of other tariffs. The auto industry has lobbied hard for tariff exemptions since Trump took office. While many of Trump's most extreme tariffs are being challenged in court, those cases do not affect auto tariffs, which were implemented using a separate law. In a press conference with Tesla (TSLA) CEO Elon Musk on Friday afternoon, President Trump repeated his claim that China "violated a big part of the agreement we made." Trump also stated that he expects to have a call with Chinese President Xi Jinping, though he didn't offer any definite details about when such a call would take place. "I'm sure that I'll speak to President Xi, and hopefully we'll work that out," the president said. Trump has not yet spoken with his Chinese counterpart during his second term. He previously said he expected to speak with Xi in mid-May after the US and China announced a temporary tariff pause, but that call never occurred. Trump's comments come as trade tensions between the US and China ratchet up again. On Friday, Trump escalated his rhetoric against China, and Bloomberg reported that the Trump administration plans to expand tech restrictions on the country. US markets took another leg lower on Friday after Bloomberg reported the Trump administration plans to expand tech restrictions on China by targeting subsidiaries of already-sanctioned firms. The proposed rule would require US government licenses for transactions involving companies majority-owned by firms on the so-called "Entity List," aiming to close loopholes used to bypass existing curbs. The measure, which could affect major Chinese chipmakers such as Huawei and Yangtze Memory Technologies, is expected to further heighten tensions between Washington and Beijing amid ongoing disputes over semiconductors and critical mineral exports. The report comes on the heels of earlier comments from President Trump, who lashed out at China in a Truth Social post, accusing the country of having "violated" its trade deal with the US. While he did not provide specifics, the comments echoed earlier rhetoric from his administration suggesting that negotiations with Beijing had "stalled." In afternoon trade, the Nasdaq (^IXIC) dropped approximately 1.6% while the benchmark S&P 500 (^GSPC) fell 1%, and the Dow (^DJI) slipped 0.6%. Reuters reports: Read more here. The temporary trade deal that led to the US and China pausing steep tariffs is showing signs of fraying. In a post on Truth Social on Friday, President Trump made it clear who he thinks is to blame. "I made a FAST DEAL with China in order to save them from what I thought was going to be a very bad situation, and I didn't want to see that happen," Trump said. "Because of this deal, everything quickly stabilized and China got back to business as usual. Everybody was happy! That is the good news!!! "The bad news," he continued, "is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US." "So much for being Mr. NICE GUY!" China has hit back at President Trump, accusing the US of violating their recent trade agreement, making it less likely that Trump will get the leadership call he wants to restart trade talks between the two sides. On Monday, the Chinese Ministry of Commerce said in a statement that the US had introduced discriminatory restrictions, including new guidelines on AI chip export controls, curbs on chip design software sales to China, and the withdrawal of Chinese student visas. Beijing also rebuked the US president's claim that China had breached the agreement reached in Geneva last month. 'If the US insists on its own way and continues to damage China's interests, China will continue to take resolute and forceful measures to safeguard its legitimate rights and interests,' the ministry said. China's response to the US follows Trump's claims on Friday that China had violated the trade truce. "The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!" Trump wrote. But is Trump's tough talk just that — talk? As Yahoo Finance's senior reporter Alexandra Canal points out, amid all the US-China tensions, many investors believe the president talks tough on tariffs but always backs down. In the midst of the chaos, one phrase kept surfacing across Wall Street: the "TACO" trade. An acronym for "Trump Always Chickens Out," That assumption has fueled a market tailwind in recent months as traders bet on policy pivots, buoyed by an initial US-China tariff deescalation earlier this month. Yahoo Finance senior columnist Rick Newman said: "The only problem with the TACO trade is that the premise isn't true. Trump doesn't always chicken out. His threats are often worse than his actions, but five months into Trump's term, it is abundantly clear that taxes on imports will be considerably higher for as long as Trump is in charge." Yahoo Finance's Ben Werschkul reports: Read more here. AP reports: Read more here. Aluminium (ALI=F) prices for US buyers jumped on Monday after President Trump said he planned to increase tariffs on imported steel and aluminium from 25% to 50%. Reuters reports: Read more here. President Trump's tariffs have brought more twists and turns over the last week for small businesses, with many having to cut staff hours and angry at how the government has treated them. CNN reports: Read more here. Prime Minister Mark Carney wants Canadian provinces to trade more freely with each other in a bid to help reduce the economic harm from Trump's tariffs. Bloomberg News reports: Read more here. Reuters reports: Read more here. Between tariff pauses and court rulings, President Trump's trade agenda remains in limbo. But there are some key dates and events arriving in the coming months that may offer more clarity on the path of tariff rates. Here's a timeline compiled by Reuters of dates to pay attention to: June 5: The date by which the plaintiffs in the tariffs case are required to respond to the US federal appeals court, which reinstated most of Trump's tariffs on May 30. June 9: The deadline for the Trump administration to respond to the appeals court. June 15-17: Trump will attend the annual G7 Leaders' Summit in Alberta, Canada. Tariffs are expected to be a major topic of discussion. July 8: "Liberation Day" tariffs are scheduled to resume following the 90-day pause, potentially affecting imports from multiple countries. July 9: The deadline for the US and the EU to negotiate a trade agreement. If no deal is reached, the US will impose an across-the-board 50% tariff on EU imports. July 14: The EU's 90-day pause on its own retaliatory tariffs to end. Read more here. President Donald Trump's doubling of tariffs on foreign steel and aluminum could hit Americans in an unexpected place: grocery aisles. The announcement Friday of a staggering 50% levy on those imports stoked fear that big-ticket purchases from cars to washing machines to houses could see major price increases. But those metals are so ubiquitous in packaging, they're likely to pack a punch across consumer products from soup to nuts. 'Rising grocery prices would be part of the ripple effects,' says Usha Haley, an expert on trade and professor at Wichita State University, who added that the tariffs could raise costs across industries and further strain ties with allies 'without aiding a long-term U.S. manufacturing revival.' Read more here U.S. Commerce Secretary Howard Lutnick downplayed the impact of legal uncertainty around U.S. tariffs on negotiations with the European Union during an interview with Fox News Sunday, saying talks were ongoing. Lutnick was asked about a Reuters report quoting an unnamed EU official close to negotiations who said the legal uncertainty of the tariffs in the U.S. gave the E.U. "extra leverage." "You can't listen to silly people making silly comments," Lutnick said. "All of the countries that are negotiating with us understand the power of Donald Trump and his ability to protect the American worker." Read more here Affordable cosmetics company e.l.f. Beauty (ELF) has long relied on China to keep its prices low and create value-oriented "dupes" of higher-end products. Now, President Trump's economic agenda is putting that model to the test. E.l.f. sources 75% of its products from China, making it highly exposed to higher costs from Trump's tariffs (though less so than in 2019, when the company sourced 100% of its products from the country). In addition to the broad-based tariffs Trump has levied in his second term, e.l.f. faces a 25% tariff on its China-sourced products that Trump levied in 2019. With the most recent 30% tariffs that Trump imposed on Chinese goods, which are undergoing legal scrutiny, e.l.f.'s product imports to the US were subject to tariffs at the 55% level. Unlike other companies that have vocally pivoted to American onshoring to avoid being singled out by the president, CEO Tarang Amin said on the company's earnings call that e.l.f. remains committed to its Chinese suppliers. "We believe our unique China-based supply chain is an area of competitive advantage we've been honing for the past 21 years," Amin said. "It underpins our value proposition, delivering the best combination of quality, cost, and speed in our industry. We're ... committed to our China team and suppliers." Read more here A legal argument that the US Supreme Court used to foil Joe Biden on climate change and student debt now looms as a threat to President Donald Trump's sweeping tariffs. During Biden's presidency, the court's conservative majority ruled that federal agencies can't decide sweeping political and economic matters without clear congressional authorization. That blocked the Environmental Protection Agency from setting deep limits on power-plant pollution and the Education Department from slashing student loans for 40 million people. The concept — known as the 'major questions doctrine' — is now playing a central role in the case against Trump's unilateral imposition of worldwide import taxes. With Supreme Court review all but inevitable, the justices' willingness to employ the doctrine against Trump may determine the fate of his signature economic initiative. Read more here The Financial Times reports that the strain of President Donald Trump's tariffs has taken its toll on the friendly cross-border relationship between Windsor, Ontario and Detroit, Michigan: Read more here (premium) Gap (GAP) CEO Richard Dickson told Yahoo Finance's Brian Sozzi that Trump's trade war has not derailed the company's turnaround plans. "Like any business, we're constantly navigating complexity," Dickson added. "There's a lot of complexities in running a business. And in this case, tariffs is a focus. But it's our responsibility to do so without ever compromising the long-term integrity of our strategy." Gap stock plunged about 20% on Friday after the apparel company reported first quarter results. While the company beat estimates on the top and bottom lines, it warned tariff-related expenses could add up to $300 million this year. Some analysts estimated those costs could translate to an earnings hit of about $0.25 a share. Gap said it's continuing to shift away from China and diversify its supply chain more broadly. By the end of 2026, the company said no single country would represent more than 25% of its sourcing. Read more here. President Trump is looking to former President Nixon as proof that his global tariffs should be allowed to stand in court. Roughly five decades ago, 10% duties unilaterally imposed by the 37th president as part of a set of economic measures dubbed the "Nixon shock" were challenged in court in much the same way as Trump's 2025 tariffs have been. The US Court of International Trade struck down many of Trump's tariffs Wednesday, just as Nixon's duties suffered an initial defeat. An appeals court on Thursday allowed Trump's duties to temporarily stay in place while legal arguments continue. What has emboldened the Trump administration is that the Nixon-era Justice Department eventually won its case on appeal, an outcome the Trump administration cited in court documents this week, predicting that its legal saga would likely turn out the same way. It told the US Court of Appeals for the Federal Circuit that "the Federal Circuit's predecessor concluded that the very same language that today exists" in a law used by Trump to justify his tariffs "gave President Nixon the power to impose an import duty surcharge." Read the full story here. President Trump said that although he gave US automakers "some leeway" with tariffs, he expects automakers to fully bring back domestic auto manufacturing in the next year. "All of the manufacturers will build their parts here too," Trump told reporters in the Oval Office in response to a question about tariffs affecting companies like Tesla (TSLA). Of note, Tesla is considered to have the highest percentage of "Made in America" parts, though no car is 100% made in the US. Tesla's long-range Model Y and Model 3 vehicles contain 87.5% "total domestic content," according to a 2024 study by Kelley Blue Book. "It used to bother me, [automakers] make a part in Canada, a part in Mexico, a part in Europe, and sent all over the place, and nobody knew what the hell was happening," Trump continued. "I think you build a car, make it in America. ... over the next year, they've got to have the whole thing built in America." The US imposed auto tariffs of 25% on May 3, but the Trump administration carved out an exemption for some auto parts tariffs, stating that they would not be stacked on top of other tariffs. The auto industry has lobbied hard for tariff exemptions since Trump took office. While many of Trump's most extreme tariffs are being challenged in court, those cases do not affect auto tariffs, which were implemented using a separate law. In a press conference with Tesla (TSLA) CEO Elon Musk on Friday afternoon, President Trump repeated his claim that China "violated a big part of the agreement we made." Trump also stated that he expects to have a call with Chinese President Xi Jinping, though he didn't offer any definite details about when such a call would take place. "I'm sure that I'll speak to President Xi, and hopefully we'll work that out," the president said. Trump has not yet spoken with his Chinese counterpart during his second term. He previously said he expected to speak with Xi in mid-May after the US and China announced a temporary tariff pause, but that call never occurred. Trump's comments come as trade tensions between the US and China ratchet up again. On Friday, Trump escalated his rhetoric against China, and Bloomberg reported that the Trump administration plans to expand tech restrictions on the country. US markets took another leg lower on Friday after Bloomberg reported the Trump administration plans to expand tech restrictions on China by targeting subsidiaries of already-sanctioned firms. The proposed rule would require US government licenses for transactions involving companies majority-owned by firms on the so-called "Entity List," aiming to close loopholes used to bypass existing curbs. The measure, which could affect major Chinese chipmakers such as Huawei and Yangtze Memory Technologies, is expected to further heighten tensions between Washington and Beijing amid ongoing disputes over semiconductors and critical mineral exports. The report comes on the heels of earlier comments from President Trump, who lashed out at China in a Truth Social post, accusing the country of having "violated" its trade deal with the US. While he did not provide specifics, the comments echoed earlier rhetoric from his administration suggesting that negotiations with Beijing had "stalled." In afternoon trade, the Nasdaq (^IXIC) dropped approximately 1.6% while the benchmark S&P 500 (^GSPC) fell 1%, and the Dow (^DJI) slipped 0.6%. Reuters reports: Read more here. The temporary trade deal that led to the US and China pausing steep tariffs is showing signs of fraying. In a post on Truth Social on Friday, President Trump made it clear who he thinks is to blame. "I made a FAST DEAL with China in order to save them from what I thought was going to be a very bad situation, and I didn't want to see that happen," Trump said. "Because of this deal, everything quickly stabilized and China got back to business as usual. Everybody was happy! That is the good news!!! "The bad news," he continued, "is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US." "So much for being Mr. NICE GUY!" 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Yahoo
3 days ago
- Business
- Yahoo
Trump tariffs live updates: China responds to Trump accusing the US of violating the trade truce
China responded to President Trump on Monday, accusing the US of violating their trade agreement and vowing to protect its interests, making it less likely that Trump will get the leadership call he wants to restart trade talks. 'If the US insists on its own way and continues to damage China's interests, China will continue to take resolute and forceful measures to safeguard its legitimate rights and interests,' the Chinese Ministry of Commerce said. Beijing accused the US of introducing discriminatory restrictions, which include new guidelines on AI chip export controls and the withdrawal of Chinese student visas. China's salvo came days after Trump lashed out at China on Truth Social, saying China had "violated" its trade deal with the US. "The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!" Trump wrote. Later in the Oval Office, he hinted he planned to speak with Chinese leader Xi Jinping. The escalation comes as the US-China detente — reached earlier this month, when each country eased sky-high tariffs on the other — looks more fragile amid both trade-related and other tensions. Meanwhile, Trump said at a rally in Pennsylvania on Friday that he is going to double tariffs on steel imports from 25% to 50%. The hike, the president said, "will even further secure the steel industry in the United States." Trump's most sweeping tariffs face legal uncertainty after a federal appeals court allowed the tariffs to temporarily stay in effect, a day after the US Court of International Trade blocked their implementation, deeming the method used to enact them "unlawful." That means Trump's tariff agenda remains intact, if in flux, in the latest twist in the unfolding legal saga that Trump said Friday he was confident he would "win." The White House has vowed to take its appeal to the Supreme Court if necessary. Administration officials also hinted that court rulings would not be the final say. Yahoo Finance's Ben Werschkul has an overview of the other maneuvers Trump could pursue. Here are the latest updates as the policy reverberates around the world. China has hit back at President Trump, accusing the US of violating their recent trade agreement, making it less likely that Trump will get the leadership call he wants to restart trade talks between the two sides. On Monday, the Chinese Ministry of Commerce said in a statement that the US had introduced discriminatory restrictions, including new guidelines on AI chip export controls, curbs on chip design software sales to China, and the withdrawal of Chinese student visas. Beijing also rebuked the US president's claim that China had breached the agreement reached in Geneva last month. 'If the US insists on its own way and continues to damage China's interests, China will continue to take resolute and forceful measures to safeguard its legitimate rights and interests,' the ministry said. China's response to the US follows Trump's claims on Friday that China had violated the trade truce. "The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!" Trump wrote. But is Trump's tough talk just that — talk? As Yahoo Finance's senior reporter Alexandra Canal points out, amid all the US-China tensions, many investors believe the president talks tough on tariffs but always backs down. In the midst of the chaos, one phrase kept surfacing across Wall Street: the "TACO" trade. An acronym for "Trump Always Chickens Out," That assumption has fueled a market tailwind in recent months as traders bet on policy pivots, buoyed by an initial US-China tariff deescalation earlier this month. Yahoo Finance senior columnist Rick Newman said: "The only problem with the TACO trade is that the premise isn't true. Trump doesn't always chicken out. His threats are often worse than his actions, but five months into Trump's term, it is abundantly clear that taxes on imports will be considerably higher for as long as Trump is in charge." Yahoo Finance's Ben Werschkul reports: Read more here. AP reports: Read more here. Aluminium (ALI=F) prices for US buyers jumped on Monday after President Trump said he planned to increase tariffs on imported steel and aluminium from 25% to 50%. Reuters reports: Read more here. President Trump's tariffs have brought more twists and turns over the last week for small businesses, with many having to cut staff hours and angry at how the government has treated them. CNN reports: Read more here. Prime Minister Mark Carney wants Canadian provinces to trade more freely with each other in a bid to help reduce the economic harm from Trump's tariffs. Bloomberg News reports: Read more here. Reuters reports: Read more here. Between tariff pauses and court rulings, President Trump's trade agenda remains in limbo. But there are some key dates and events arriving in the coming months that may offer more clarity on the path of tariff rates. Here's a timeline compiled by Reuters of dates to pay attention to: June 5: The date by which the plaintiffs in the tariffs case are required to respond to the US federal appeals court, which reinstated most of Trump's tariffs on May 30. June 9: The deadline for the Trump administration to respond to the appeals court. June 15-17: Trump will attend the annual G7 Leaders' Summit in Alberta, Canada. Tariffs are expected to be a major topic of discussion. July 8: "Liberation Day" tariffs are scheduled to resume following the 90-day pause, potentially affecting imports from multiple countries. July 9: The deadline for the US and the EU to negotiate a trade agreement. If no deal is reached, the US will impose an across-the-board 50% tariff on EU imports. July 14: The EU's 90-day pause on its own retaliatory tariffs to end. Read more here. President Donald Trump's doubling of tariffs on foreign steel and aluminum could hit Americans in an unexpected place: grocery aisles. The announcement Friday of a staggering 50% levy on those imports stoked fear that big-ticket purchases from cars to washing machines to houses could see major price increases. But those metals are so ubiquitous in packaging, they're likely to pack a punch across consumer products from soup to nuts. 'Rising grocery prices would be part of the ripple effects,' says Usha Haley, an expert on trade and professor at Wichita State University, who added that the tariffs could raise costs across industries and further strain ties with allies 'without aiding a long-term U.S. manufacturing revival.' Read more here U.S. Commerce Secretary Howard Lutnick downplayed the impact of legal uncertainty around U.S. tariffs on negotiations with the European Union during an interview with Fox News Sunday, saying talks were ongoing. Lutnick was asked about a Reuters report quoting an unnamed EU official close to negotiations who said the legal uncertainty of the tariffs in the U.S. gave the E.U. "extra leverage." "You can't listen to silly people making silly comments," Lutnick said. "All of the countries that are negotiating with us understand the power of Donald Trump and his ability to protect the American worker." Read more here Affordable cosmetics company e.l.f. Beauty (ELF) has long relied on China to keep its prices low and create value-oriented "dupes" of higher-end products. Now, President Trump's economic agenda is putting that model to the test. E.l.f. sources 75% of its products from China, making it highly exposed to higher costs from Trump's tariffs (though less so than in 2019, when the company sourced 100% of its products from the country). In addition to the broad-based tariffs Trump has levied in his second term, e.l.f. faces a 25% tariff on its China-sourced products that Trump levied in 2019. With the most recent 30% tariffs that Trump imposed on Chinese goods, which are undergoing legal scrutiny, e.l.f.'s product imports to the US were subject to tariffs at the 55% level. Unlike other companies that have vocally pivoted to American onshoring to avoid being singled out by the president, CEO Tarang Amin said on the company's earnings call that e.l.f. remains committed to its Chinese suppliers. "We believe our unique China-based supply chain is an area of competitive advantage we've been honing for the past 21 years," Amin said. "It underpins our value proposition, delivering the best combination of quality, cost, and speed in our industry. We're ... committed to our China team and suppliers." Read more here A legal argument that the US Supreme Court used to foil Joe Biden on climate change and student debt now looms as a threat to President Donald Trump's sweeping tariffs. During Biden's presidency, the court's conservative majority ruled that federal agencies can't decide sweeping political and economic matters without clear congressional authorization. That blocked the Environmental Protection Agency from setting deep limits on power-plant pollution and the Education Department from slashing student loans for 40 million people. The concept — known as the 'major questions doctrine' — is now playing a central role in the case against Trump's unilateral imposition of worldwide import taxes. With Supreme Court review all but inevitable, the justices' willingness to employ the doctrine against Trump may determine the fate of his signature economic initiative. Read more here The Financial Times reports that the strain of President Donald Trump's tariffs has taken its toll on the friendly cross-border relationship between Windsor, Ontario and Detroit, Michigan: Read more here (premium) Gap (GAP) CEO Richard Dickson told Yahoo Finance's Brian Sozzi that Trump's trade war has not derailed the company's turnaround plans. "Like any business, we're constantly navigating complexity," Dickson added. "There's a lot of complexities in running a business. And in this case, tariffs is a focus. But it's our responsibility to do so without ever compromising the long-term integrity of our strategy." Gap stock plunged about 20% on Friday after the apparel company reported first quarter results. While the company beat estimates on the top and bottom lines, it warned tariff-related expenses could add up to $300 million this year. Some analysts estimated those costs could translate to an earnings hit of about $0.25 a share. Gap said it's continuing to shift away from China and diversify its supply chain more broadly. By the end of 2026, the company said no single country would represent more than 25% of its sourcing. Read more here. President Trump is looking to former President Nixon as proof that his global tariffs should be allowed to stand in court. Roughly five decades ago, 10% duties unilaterally imposed by the 37th president as part of a set of economic measures dubbed the "Nixon shock" were challenged in court in much the same way as Trump's 2025 tariffs have been. The US Court of International Trade struck down many of Trump's tariffs Wednesday, just as Nixon's duties suffered an initial defeat. An appeals court on Thursday allowed Trump's duties to temporarily stay in place while legal arguments continue. What has emboldened the Trump administration is that the Nixon-era Justice Department eventually won its case on appeal, an outcome the Trump administration cited in court documents this week, predicting that its legal saga would likely turn out the same way. It told the US Court of Appeals for the Federal Circuit that "the Federal Circuit's predecessor concluded that the very same language that today exists" in a law used by Trump to justify his tariffs "gave President Nixon the power to impose an import duty surcharge." Read the full story here. President Trump said that although he gave US automakers "some leeway" with tariffs, he expects automakers to fully bring back domestic auto manufacturing in the next year. "All of the manufacturers will build their parts here too," Trump told reporters in the Oval Office in response to a question about tariffs affecting companies like Tesla (TSLA). Of note, Tesla is considered to have the highest percentage of "Made in America" parts, though no car is 100% made in the US. Tesla's long-range Model Y and Model 3 vehicles contain 87.5% "total domestic content," according to a 2024 study by Kelley Blue Book. "It used to bother me, [automakers] make a part in Canada, a part in Mexico, a part in Europe, and sent all over the place, and nobody knew what the hell was happening," Trump continued. "I think you build a car, make it in America. ... over the next year, they've got to have the whole thing built in America." The US imposed auto tariffs of 25% on May 3, but the Trump administration carved out an exemption for some auto parts tariffs, stating that they would not be stacked on top of other tariffs. The auto industry has lobbied hard for tariff exemptions since Trump took office. While many of Trump's most extreme tariffs are being challenged in court, those cases do not affect auto tariffs, which were implemented using a separate law. In a press conference with Tesla (TSLA) CEO Elon Musk on Friday afternoon, President Trump repeated his claim that China "violated a big part of the agreement we made." Trump also stated that he expects to have a call with Chinese President Xi Jinping, though he didn't offer any definite details about when such a call would take place. "I'm sure that I'll speak to President Xi, and hopefully we'll work that out," the president said. Trump has not yet spoken with his Chinese counterpart during his second term. He previously said he expected to speak with Xi in mid-May after the US and China announced a temporary tariff pause, but that call never occurred. Trump's comments come as trade tensions between the US and China ratchet up again. On Friday, Trump escalated his rhetoric against China, and Bloomberg reported that the Trump administration plans to expand tech restrictions on the country. US markets took another leg lower on Friday after Bloomberg reported the Trump administration plans to expand tech restrictions on China by targeting subsidiaries of already-sanctioned firms. The proposed rule would require US government licenses for transactions involving companies majority-owned by firms on the so-called "Entity List," aiming to close loopholes used to bypass existing curbs. The measure, which could affect major Chinese chipmakers such as Huawei and Yangtze Memory Technologies, is expected to further heighten tensions between Washington and Beijing amid ongoing disputes over semiconductors and critical mineral exports. The report comes on the heels of earlier comments from President Trump, who lashed out at China in a Truth Social post, accusing the country of having "violated" its trade deal with the US. While he did not provide specifics, the comments echoed earlier rhetoric from his administration suggesting that negotiations with Beijing had "stalled." In afternoon trade, the Nasdaq (^IXIC) dropped approximately 1.6% while the benchmark S&P 500 (^GSPC) fell 1%, and the Dow (^DJI) slipped 0.6%. Reuters reports: Read more here. The temporary trade deal that led to the US and China pausing steep tariffs is showing signs of fraying. In a post on Truth Social on Friday, President Trump made it clear who he thinks is to blame. "I made a FAST DEAL with China in order to save them from what I thought was going to be a very bad situation, and I didn't want to see that happen," Trump said. "Because of this deal, everything quickly stabilized and China got back to business as usual. Everybody was happy! That is the good news!!! "The bad news," he continued, "is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US." "So much for being Mr. NICE GUY!" China has hit back at President Trump, accusing the US of violating their recent trade agreement, making it less likely that Trump will get the leadership call he wants to restart trade talks between the two sides. On Monday, the Chinese Ministry of Commerce said in a statement that the US had introduced discriminatory restrictions, including new guidelines on AI chip export controls, curbs on chip design software sales to China, and the withdrawal of Chinese student visas. Beijing also rebuked the US president's claim that China had breached the agreement reached in Geneva last month. 'If the US insists on its own way and continues to damage China's interests, China will continue to take resolute and forceful measures to safeguard its legitimate rights and interests,' the ministry said. China's response to the US follows Trump's claims on Friday that China had violated the trade truce. "The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!" Trump wrote. But is Trump's tough talk just that — talk? As Yahoo Finance's senior reporter Alexandra Canal points out, amid all the US-China tensions, many investors believe the president talks tough on tariffs but always backs down. In the midst of the chaos, one phrase kept surfacing across Wall Street: the "TACO" trade. An acronym for "Trump Always Chickens Out," That assumption has fueled a market tailwind in recent months as traders bet on policy pivots, buoyed by an initial US-China tariff deescalation earlier this month. Yahoo Finance senior columnist Rick Newman said: "The only problem with the TACO trade is that the premise isn't true. Trump doesn't always chicken out. His threats are often worse than his actions, but five months into Trump's term, it is abundantly clear that taxes on imports will be considerably higher for as long as Trump is in charge." Yahoo Finance's Ben Werschkul reports: Read more here. AP reports: Read more here. Aluminium (ALI=F) prices for US buyers jumped on Monday after President Trump said he planned to increase tariffs on imported steel and aluminium from 25% to 50%. Reuters reports: Read more here. President Trump's tariffs have brought more twists and turns over the last week for small businesses, with many having to cut staff hours and angry at how the government has treated them. CNN reports: Read more here. Prime Minister Mark Carney wants Canadian provinces to trade more freely with each other in a bid to help reduce the economic harm from Trump's tariffs. Bloomberg News reports: Read more here. Reuters reports: Read more here. Between tariff pauses and court rulings, President Trump's trade agenda remains in limbo. But there are some key dates and events arriving in the coming months that may offer more clarity on the path of tariff rates. Here's a timeline compiled by Reuters of dates to pay attention to: June 5: The date by which the plaintiffs in the tariffs case are required to respond to the US federal appeals court, which reinstated most of Trump's tariffs on May 30. June 9: The deadline for the Trump administration to respond to the appeals court. June 15-17: Trump will attend the annual G7 Leaders' Summit in Alberta, Canada. Tariffs are expected to be a major topic of discussion. July 8: "Liberation Day" tariffs are scheduled to resume following the 90-day pause, potentially affecting imports from multiple countries. July 9: The deadline for the US and the EU to negotiate a trade agreement. If no deal is reached, the US will impose an across-the-board 50% tariff on EU imports. July 14: The EU's 90-day pause on its own retaliatory tariffs to end. Read more here. President Donald Trump's doubling of tariffs on foreign steel and aluminum could hit Americans in an unexpected place: grocery aisles. The announcement Friday of a staggering 50% levy on those imports stoked fear that big-ticket purchases from cars to washing machines to houses could see major price increases. But those metals are so ubiquitous in packaging, they're likely to pack a punch across consumer products from soup to nuts. 'Rising grocery prices would be part of the ripple effects,' says Usha Haley, an expert on trade and professor at Wichita State University, who added that the tariffs could raise costs across industries and further strain ties with allies 'without aiding a long-term U.S. manufacturing revival.' Read more here U.S. Commerce Secretary Howard Lutnick downplayed the impact of legal uncertainty around U.S. tariffs on negotiations with the European Union during an interview with Fox News Sunday, saying talks were ongoing. Lutnick was asked about a Reuters report quoting an unnamed EU official close to negotiations who said the legal uncertainty of the tariffs in the U.S. gave the E.U. "extra leverage." "You can't listen to silly people making silly comments," Lutnick said. "All of the countries that are negotiating with us understand the power of Donald Trump and his ability to protect the American worker." Read more here Affordable cosmetics company e.l.f. Beauty (ELF) has long relied on China to keep its prices low and create value-oriented "dupes" of higher-end products. Now, President Trump's economic agenda is putting that model to the test. E.l.f. sources 75% of its products from China, making it highly exposed to higher costs from Trump's tariffs (though less so than in 2019, when the company sourced 100% of its products from the country). In addition to the broad-based tariffs Trump has levied in his second term, e.l.f. faces a 25% tariff on its China-sourced products that Trump levied in 2019. With the most recent 30% tariffs that Trump imposed on Chinese goods, which are undergoing legal scrutiny, e.l.f.'s product imports to the US were subject to tariffs at the 55% level. Unlike other companies that have vocally pivoted to American onshoring to avoid being singled out by the president, CEO Tarang Amin said on the company's earnings call that e.l.f. remains committed to its Chinese suppliers. "We believe our unique China-based supply chain is an area of competitive advantage we've been honing for the past 21 years," Amin said. "It underpins our value proposition, delivering the best combination of quality, cost, and speed in our industry. We're ... committed to our China team and suppliers." Read more here A legal argument that the US Supreme Court used to foil Joe Biden on climate change and student debt now looms as a threat to President Donald Trump's sweeping tariffs. During Biden's presidency, the court's conservative majority ruled that federal agencies can't decide sweeping political and economic matters without clear congressional authorization. That blocked the Environmental Protection Agency from setting deep limits on power-plant pollution and the Education Department from slashing student loans for 40 million people. The concept — known as the 'major questions doctrine' — is now playing a central role in the case against Trump's unilateral imposition of worldwide import taxes. With Supreme Court review all but inevitable, the justices' willingness to employ the doctrine against Trump may determine the fate of his signature economic initiative. Read more here The Financial Times reports that the strain of President Donald Trump's tariffs has taken its toll on the friendly cross-border relationship between Windsor, Ontario and Detroit, Michigan: Read more here (premium) Gap (GAP) CEO Richard Dickson told Yahoo Finance's Brian Sozzi that Trump's trade war has not derailed the company's turnaround plans. "Like any business, we're constantly navigating complexity," Dickson added. "There's a lot of complexities in running a business. And in this case, tariffs is a focus. But it's our responsibility to do so without ever compromising the long-term integrity of our strategy." Gap stock plunged about 20% on Friday after the apparel company reported first quarter results. While the company beat estimates on the top and bottom lines, it warned tariff-related expenses could add up to $300 million this year. Some analysts estimated those costs could translate to an earnings hit of about $0.25 a share. Gap said it's continuing to shift away from China and diversify its supply chain more broadly. By the end of 2026, the company said no single country would represent more than 25% of its sourcing. Read more here. President Trump is looking to former President Nixon as proof that his global tariffs should be allowed to stand in court. Roughly five decades ago, 10% duties unilaterally imposed by the 37th president as part of a set of economic measures dubbed the "Nixon shock" were challenged in court in much the same way as Trump's 2025 tariffs have been. The US Court of International Trade struck down many of Trump's tariffs Wednesday, just as Nixon's duties suffered an initial defeat. An appeals court on Thursday allowed Trump's duties to temporarily stay in place while legal arguments continue. What has emboldened the Trump administration is that the Nixon-era Justice Department eventually won its case on appeal, an outcome the Trump administration cited in court documents this week, predicting that its legal saga would likely turn out the same way. It told the US Court of Appeals for the Federal Circuit that "the Federal Circuit's predecessor concluded that the very same language that today exists" in a law used by Trump to justify his tariffs "gave President Nixon the power to impose an import duty surcharge." Read the full story here. President Trump said that although he gave US automakers "some leeway" with tariffs, he expects automakers to fully bring back domestic auto manufacturing in the next year. "All of the manufacturers will build their parts here too," Trump told reporters in the Oval Office in response to a question about tariffs affecting companies like Tesla (TSLA). Of note, Tesla is considered to have the highest percentage of "Made in America" parts, though no car is 100% made in the US. Tesla's long-range Model Y and Model 3 vehicles contain 87.5% "total domestic content," according to a 2024 study by Kelley Blue Book. "It used to bother me, [automakers] make a part in Canada, a part in Mexico, a part in Europe, and sent all over the place, and nobody knew what the hell was happening," Trump continued. "I think you build a car, make it in America. ... over the next year, they've got to have the whole thing built in America." The US imposed auto tariffs of 25% on May 3, but the Trump administration carved out an exemption for some auto parts tariffs, stating that they would not be stacked on top of other tariffs. The auto industry has lobbied hard for tariff exemptions since Trump took office. While many of Trump's most extreme tariffs are being challenged in court, those cases do not affect auto tariffs, which were implemented using a separate law. In a press conference with Tesla (TSLA) CEO Elon Musk on Friday afternoon, President Trump repeated his claim that China "violated a big part of the agreement we made." Trump also stated that he expects to have a call with Chinese President Xi Jinping, though he didn't offer any definite details about when such a call would take place. "I'm sure that I'll speak to President Xi, and hopefully we'll work that out," the president said. Trump has not yet spoken with his Chinese counterpart during his second term. He previously said he expected to speak with Xi in mid-May after the US and China announced a temporary tariff pause, but that call never occurred. Trump's comments come as trade tensions between the US and China ratchet up again. On Friday, Trump escalated his rhetoric against China, and Bloomberg reported that the Trump administration plans to expand tech restrictions on the country. US markets took another leg lower on Friday after Bloomberg reported the Trump administration plans to expand tech restrictions on China by targeting subsidiaries of already-sanctioned firms. The proposed rule would require US government licenses for transactions involving companies majority-owned by firms on the so-called "Entity List," aiming to close loopholes used to bypass existing curbs. The measure, which could affect major Chinese chipmakers such as Huawei and Yangtze Memory Technologies, is expected to further heighten tensions between Washington and Beijing amid ongoing disputes over semiconductors and critical mineral exports. The report comes on the heels of earlier comments from President Trump, who lashed out at China in a Truth Social post, accusing the country of having "violated" its trade deal with the US. While he did not provide specifics, the comments echoed earlier rhetoric from his administration suggesting that negotiations with Beijing had "stalled." In afternoon trade, the Nasdaq (^IXIC) dropped approximately 1.6% while the benchmark S&P 500 (^GSPC) fell 1%, and the Dow (^DJI) slipped 0.6%. Reuters reports: Read more here. The temporary trade deal that led to the US and China pausing steep tariffs is showing signs of fraying. In a post on Truth Social on Friday, President Trump made it clear who he thinks is to blame. "I made a FAST DEAL with China in order to save them from what I thought was going to be a very bad situation, and I didn't want to see that happen," Trump said. "Because of this deal, everything quickly stabilized and China got back to business as usual. Everybody was happy! That is the good news!!! "The bad news," he continued, "is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US." "So much for being Mr. NICE GUY!" 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Time of India
3 days ago
- Business
- Time of India
China criticises US for its computer chip moves and for threatening student visas
China blasted the US on Monday over moves it alleged harmed Chinese interests, including issuing AI chip export control guidelines, stopping the sale of chip design software to China, and planning to revoke Chinese student visas . "These practices seriously violate the consensus" reached during trade discussions in Geneva last month, the Commerce Ministry said in a statement. That referred to a China-US joint statement in which the United States and China agreed to slash their massive recent tariffs, restarting stalled trade between the world's two biggest economies. But last month's de-escalation in President Donald Trump's trade wars did nothing to resolve underlying differences between Beijing and Washington and Monday's statement showed how easily such agreements can lead to further turbulence. The deal lasts 90 days, creating time for US and Chinese negotiators to reach a more substantive agreement. But the pause also leaves tariffs higher than before Trump started ramping them up last month. And businesses and investors must contend with uncertainty about whether the truce will last. Live Events US Trade Representative Jamieson Greer said the US agreed to drop the 145% tax Trump imposed last month to 30%. China agreed to lower its tariff rate on US goods to 10% from 125%. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories The Commerce Ministry said China held up its end of the deal, canceling or suspending tariffs and non-tariff measures taken against the US "reciprocal tariffs" following the agreement. "The United States has unilaterally provoked new economic and trade frictions, exacerbating the uncertainty and instability of bilateral economic and trade relations," while China has stood by its commitments, the statement said. It also threatened unspecified retaliation, saying China will "continue to take resolute and forceful measures to safeguard its legitimate rights and interests." And in response to recent comments by Trump, it said of the U.S.: "Instead of reflecting on itself, it has turned the tables and unreasonably accused China of violating the consensus, which is seriously contrary to the facts." Trump stirred further controversy Friday, saying he will no longer be nice with China on trade, declaring in a social media post that the country had broken an agreement with the United States. Hours later, Trump said in the Oval Office that he will speak with Chinese President Xi Jinping and "hopefully we'll work that out," while still insisting China had violated the agreement. "The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US," Trump posted. "So much for being Mr. NICE GUY!" The Trump administration also stepped up the clash with China in other ways last week, announcing that it would start revoking visas for Chinese students studying in the U.S. US campuses host more than 275,000 students from China. Both countries are in a race to develop advanced technologies such as artificial intelligence, with Washington seeking to curb China's access to the most advanced computer chips. China is also seeking to displace the US as the leading power in the Asia-Pacific, including through gaining control over close US partner and leading tech giant Taiwan.
