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Mint
22-04-2025
- Business
- Mint
Walmart, Target Executives Meet Trump As Tariff Fears Spread
Supply Lines is a daily newsletter that tracks global trade. . President Donald Trump met with major retailers at the White House, as business executives seek relief from sweeping tariffs that have destabilized global supply chains and rattled US consumers. The Monday meeting included representatives from Walmart Inc., Home Depot Inc. and Target Corp., according to people familiar with the plans. The discussion came amid a 90-day pause in Trump's higher tariffs on trading partners except China that dozens of foreign leaders and business executives are using to negotiate better terms. Listen to the Here's Why podcast on Apple, Spotify or anywhere you listen. 'We had a productive meeting with President Trump and our retail peers to discuss the path forward on trade, and we remain committed to delivering value for American consumers,' a Target spokesman said in an emailed statement. A Walmart spokeswoman also called the meeting productive and a Home Depot spokeswoman said the company looked forward to continuing constructive dialog with the White House. The White House did not immediately respond to a request for comment on the discussion. Disruptions caused in large part by Trump's tariffs have posed challenges for retailers that are main drivers of the US economy. A selloff in US assets deepened Monday amid tariff anxiety and Trump's threats against Federal Reserve Chair Jerome Powell. Shares of the companies ticked up after news of the meeting, but Walmart and Home Depot remained down for the day. Target rose less than 1% at the close of trading. American companies have warned that business could slow in the months ahead as the import taxes go into place. While companies have operated with tariffs for several years, the magnitude and fast-changing nature of Trump's levies have become a unique problem. Trump's duties on nearly all trading partners and a litany of sectors, including metals, are threatening to increase prices on everything from spirits and apparel to electronics and furniture. Those changes are expected to further hamper consumer demand, as Americans have already been price-sensitive following years of inflation. In addition to the cavalcade of overseas officials seeking lower tariffs, Trump has indicated he would be open to negotiating on rates with corporate leaders. 'We'll also talk to companies. You know, you have to show a certain flexibility. Nobody should be so rigid,' the US president told reporters on April 13. Trump's administration exempted smartphones, computers and other electronics from its so-called reciprocal tariffs. The decision marked a temporary reprieve for global technology manufacturers, including Apple Inc. and Nvidia Corp., though officials later said the US would craft other specific duties for those products and started the process by launching an investigation into semiconductor imports. Uncertainty around Trump's tariffs have made it difficult for businesses to plan inventory and pricing. The 90-day pause has given some operators a temporary relief, though many have warned of the complications that come with not knowing where duty rates will end up. Earlier: How Tariffs Threaten to Drive Up US Clothes Prices: QuickTake Americans have been rushing to purchase items like cars, electronics and appliances before Trump's levies take full effect, according to economic data. US retail sales surged 1.4% in March from the previous month, the biggest jump in more than two years, according a Commerce Department report. Auto purchases increased by 5.3% as buyers sought to avoid 25% tariffs on finished vehicles that went into place on April 3. The March data captured spending before Trump announced, then subsequently paused high tariffs on nations across the world, and before he hiked levies on many Chinese goods to 145%. But the report offers insight on consumers' mindset at a time of high uncertainty about future prices. Retailers have an especially close window into how the levies would affect consumers and the US economy, given that they sell many oft-purchased essentials. Walmart, the world's largest retailer, has said it operates a diversified supply chain and that it sources about two-thirds of items in the US. Executives said this month that the company is working to keep prices low and that its merchants are thinking through the quantity of goods it needs, as well as how prices could change due to tariffs. So far, the company has not seen customers hoard like they did during the coronavirus pandemic. Target has not indicated how much of its items are sourced overseas, though it has previously said price increases would vary by category. The company has said it was having discussions with vendors and employees about next steps. Home Depot has said it sources more than half of its goods in North America. With assistance from Matt Townsend, Jennifer A. Dlouhy and Phil Kuntz. This article was generated from an automated news agency feed without modifications to text. First Published: 22 Apr 2025, 09:23 PM IST
Yahoo
14-04-2025
- Business
- Yahoo
Trump warns tariffs coming for electronics after reprieve
(Bloomberg) — President Donald Trump pledged he will still apply tariffs to phones, computers and popular consumer electronics, downplaying a weekend exemption as a procedural step in his overall push to remake US trade. The Secret Formula for Faster Trains NYC Tourist Helicopter Crashes in Hudson River, Killing Six Even Oslo Has an Air Quality Problem Inside the Quiet, Extravagant Expansion of the Frick Collection Lisbon Mayor Wants Companies to Help Fix City's Housing Shortage The late Friday reprieve — exempting a range of popular electronics from 125% tariffs on China and a 10% flat rate around the globe — is temporary and a part of the longstanding plan to apply a different, specific levy to the sector. Trump doubled down on the plan Sunday. 'NOBODY is getting 'off the hook,'' Trump said in a social media post Sunday, issued shortly after he finished his Sunday golf game. The exempted products are 'just moving to a different Tariff 'bucket'' and the administration will be 'taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN,' he added. Listen to the Here's Why podcast on Apple, Spotify or anywhere you listen Trump told reporters aboard Air Force One his decisions will come soon, indicating that details on a tariff rate for semiconductors would be announced in the coming week. Yet Trump also signaled an openness to talks with companies over the scope of his sectoral tariff on semiconductors and products like iPhones and tablets that rely on them. 'We'll be discussing it, but we'll also talk to companies,' he said. 'You have to show a certain flexibility. Nobody should be so rigid.' Explainer: What Are the 'Reciprocal Tariffs' That Trump Paused? Taken together, the comments from Trump and his top trade chiefs Sunday are a stark reminder of the scope of his planned tariff onslaught. Still, the maneuver means weeks, maybe months, without extra tariffs on the array of phones and computers before the specific sectoral tariff on electronics kicks in — one virtually certain to be lower than the 125% rate on China, another level of reprieve. It also opens a window for companies and lobbyists to push for different parameters and exclusions. The exemptions were published in a US Customs and Border Protection document late Friday, and are a step to shift those products ultimately to a different levy, which Trump has long threatened for semiconductors, without specifying the scope. Trump already carved out those sectors he plans to specifically target from being hit by both those levies and the across-the-board ones on countries he enacted this month in his 'Liberation Day' announcement that triggered a market selloff. The pause Friday was nonetheless a temporary victory for Apple Inc. (AAPL) and other manufacturers who rely on Chinese manufacturing in particular, and the country's government had welcomed the exemptions and urged Trump to go further. 'This is a small step by the US toward correcting its wrongful action of unilateral 'reciprocal tariffs,'' the Chinese Ministry of Commerce said in a statement posted on its official WeChat account on Sunday. The ministry urged the US to 'take a big stride in completely abolishing the wrongful action, and return to the correct path of resolving differences through equal dialog based on mutual respect.' But US Commerce Secretary Howard Lutnick and other administration officials said Sunday it was only a pause before they're shifted to different levies, though those will almost certainly be lower than the 125% rate on China that Trump set last week, and perhaps higher than the 10% rate charged on other countries. 'All those products are going to come under semiconductors, and they're going to have a special focus-type of tariff to make sure that those products get reshored,' Lutnick said Sunday on ABC's This Week,. 'We can't be relying on China for fundamental things that we need.' Trump's latest exemptions cover almost $390 billion in US imports based on official US 2024 trade statistics, including more than $101 billion from China, according to data compiled by Gerard DiPippo, associate director of the Rand China Research Center. The White House has long said it would not apply its country tariffs — 125% on China, 10% on nearly every other nation — to sectors that were going to get their own specific levies. Trump has already enacted those sector-specific tariffs for steel, aluminum and autos, while teeing up addition ones on auto parts and copper and pledging yet others on semiconductor chips, pharmaceutical drugs, lumber and maybe critical minerals. Trump, aboard Air Force One late Sunday, said the tariffs would be in place 'in the not too distant future.' The semiconductor tariffs are 'coming in probably a month or two,' Lutnick said. He said a notice will be published in the federal registry this week related to semiconductors, but he didn't elaborate. The administration will likely need to launch a so-called Section 232 investigation as a next step, which would require a report within 270 days and then open the door to tariffs. US Trade Representative Jamieson Greer also pledged the products would face a different tariff. 'It's not that they won't be subject to tariffs geared at reshoring. They'll just be under a different regime. It's shifting from one bucket of tariffs to a different bucket of potential tariffs,' Greer said Sunday on Face the Nation with Margaret Brennan. Friday's exclusion was the first time that the Trump administration published a detailed list of what products it thinks fall under the umbrella of semiconductors, which are used in electronics of all kinds. They are not required to apply the sectoral tariff to the same list but Lutnick indicated they would. In some ways, Trump's Friday exclusions were an announcement of the products that will ultimately be under the 'semiconductor' sectoral tariff. It's not clear what tariff rate the administration would apply to semiconductors and products it covers under that tax, but they've been 25% so far on other industries. Those Section 232 tariffs may prove more permanent than Trump's country rates, which are based on a more vulnerable legal authority and which he's said he will negotiate. The tariff reprieve does not extend to a separate Trump levy on China — a 20% duty applied to pressure Beijing to crack down on fentanyl, including the shipment of precursor materials. Other previously existing levies, including those that predate Trump's current term, also appear unaffected. Trump, in his social media post Sunday, reiterated that the 20% rate still applies. On China, 'everyone pays at least the 20% and these particular components are being put through a separate process controlled by the Department of Commerce which is the 232,' Lutnick told ABC. —With assistance from Debby Wu, Shawn Donnan, John Liu, Ocean Hou and Tian Ying. (Updates with Trump comments on flexibility starting in fifth paragraph.) The Beauty Salon Recession Indicator Trump Is Firing the Wrong People, on Purpose World Travelers Are Rethinking Vacation Plans to the US How One MBA Grad Blew the Whistle on a $2 Billion Deal Cheap Consumer Goods Are the American Dream, Actually ©2025 Bloomberg L.P. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Sign in to access your portfolio
Yahoo
14-04-2025
- Business
- Yahoo
Tariffs to Impact Millions of Chinese Workers in Blow to Economy
(Bloomberg) -- As China staggers into a slowdown caused by Donald Trump's trade war, a hobbled jobs market is impairing the resilience Beijing needs to battle it out against the US. The Secret Formula for Faster Trains NYC Tourist Helicopter Crashes in Hudson River, Killing Six Even Oslo Has an Air Quality Problem Inside the Quiet, Extravagant Expansion of the Frick Collection Lisbon Mayor Wants Companies to Help Fix City's Housing Shortage Trump's 145% tariffs on China's goods are threatening to obliterate its access to the world's biggest economy, with Goldman Sachs Group Inc. estimating that up to 20 million people — or about 3% of the labor force — may be exposed to US-bound exports. A full economic divorce would roil a workforce already drained by widespread salary cuts and layoffs. On top of an uncertain business outlook, productivity gains from China's adoption of artificial intelligence and automation likely contributed to slowing demand for employment despite an uninterrupted economic recovery during the first months of the Trump presidency. Listen to the Here's Why podcast on Apple, Spotify or anywhere you listen. Helped by government support deployed in late 2024, growth barely slowed in the first quarter to stay above 5% from a year earlier, according to most economists, outpacing the target set by Beijing. By contrast, a measure of job openings compiled by Paris-based QuantCube Technology plunged nearly 30% from a year ago over the past two months, based on a data set that tracked online postings from over 2,000 companies. An index of future hiring plans fell in March to a six-month low, according to results of a poll of mostly private companies surveyed by the Cheung Kong Graduate School of Business, or CKGSB. The employment sub-gauge of China's non-manufacturing purchasing managers' index is also in decline. 'The fourth quarter stimulus hasn't translated into the labor market yet,' said Duncan Wrigley, chief China economist at Pantheon Macroeconomics. 'Companies want a more certain economic outlook before ramping up hiring.' Chronic weakness in the jobs market is a major obstacle for a campaign to revive consumption, a priority for China's leadership as it tried to engineer a turnaround in the face of a prolonged property crisis. Employment has been under pressure from challenges both at home and abroad, according to Wang Xiaoping, minister of human resources and social security. She spoke last month on the sidelines of the annual session of China's legislature, which set the goal of adding more than 12 million urban jobs in 2025. China's struggle to make headway with jobs loomed large even as the economy powered ahead in early 2025 after ending last year by growing at the fastest clip in six quarters. Adding to a late policy blitz, a recovery in private corporate sentiment provided a boost, especially after homegrown start-up DeepSeek's AI breakthrough and President Xi Jinping's high-profile meeting with entrepreneurs including Jack Ma. Businesses reported rising confidence in sales and financing in the first three months, according to indexes built by CKGSB on the basis of its poll, which found the highest optimism in almost two years. The economy's strong run in the first few months likely convinced China's central bank to delay monetary easing so far this year. Officials have yet to cut interest rates or lower the amount of cash banks must set in reserves, despite heightened expectations over the past few months. Further evidence of green shoots appeared in demand for heavy equipment, a reflection of front-loaded government efforts to fund infrastructure projects by means of record bond sales. China's excavator sales surged 29% in March from a year ago, the fastest expansion for that month since 2021. The government's net debt issuance surged to 1.5 trillion yuan ($206 billion) in February, nearly triple the amount it raised in the same month in 2024. Indicators compiled by QuantCube show that exports' contribution to economic growth remained stable as of the beginning of April. Consumption picked up thanks to a recovery in housing-related spending in recent weeks. QuantCube, an alternative data provider, bases its estimates of economic growth on high-frequency statistics such as transportation figures, online shopping orders and satellite data. 'The first quarter of 2025 has continued the upward momentum seen in the fourth quarter across all sectors,' said Thanh-Long Huynh, chief executive officer and co-founder of QuantCube. Jumpstarting consumption will grow more daunting in the absence of a more upbeat outlook for employment. To offset the shock of sweeping US tariffs, Beijing needs to ramp up domestic demand and help offset the loss of a market that absorbed $525 billion of Chinese goods last year. Bloomberg Economics estimates that a wipe-out of China's shipments to the US would leave as much as 3% of its gross domestic product at risk. Goldman Sachs, which is among global banks that cut their forecast for China's GDP growth, now forecasts a gain of 4% in 2025, down from 4.5% previously. The US announced late Friday that it exempted smartphones, computers and other electronics from its so-called reciprocal tariffs. That could provide some relief for Chinese exporters, since the exclusion covers more than $101 billion in goods from the country. Still, expectations are rising that Chinese policymakers will roll out greater stimulus to help the economy achieve the official target of around 5% growth this year. While officials have already signaled they're pivoting to boosting consumption this year, measures enacted so far remain limited. As a result, confidence among households has yet to turn a corner. An index constructed by Morning Consult Intelligence shows consumer sentiment weakened in early 2025 from last year, based on the firm's daily survey. 'The combination of extremely high US tariffs, sharply declining exports to the US, and a slowing global economy is expected to generate substantial pressures on the Chinese economy and labor market,' Goldman economists led by Andrew Tilton said in a report. --With assistance from James Mayger. The Beauty Salon Recession Indicator Trump Is Firing the Wrong People, on Purpose World Travelers Are Rethinking Vacation Plans to the US How One MBA Grad Blew the Whistle on a $2 Billion Deal Cheap Consumer Goods Are the American Dream, Actually ©2025 Bloomberg L.P.
Yahoo
12-04-2025
- Business
- Yahoo
Bill Ackman Calls Out Triple-Levered ETFs, Zero-Day Options Boom
(Bloomberg) -- Bill Ackman is taking aim at two booming markets beloved by day traders: Highly-leveraged exchange-traded funds and zero-day stock contracts that have become one of the hottest options strategies on Wall Street. The Secret Formula for Faster Trains Midtown Office Building Evacuated on Concerns of Wall Collapse In Chicago, a Former Steel Mill Looks to Make a Quantum Leap NYC Tourist Helicopter Crashes in Hudson River, Killing Six Inside the Quiet, Extravagant Expansion of the Frick Collection In a series of posts on X, the billionaire investor and founder of Pershing Square Capital Management criticized the heavy use of leverage in markets, asking his 1.7 million followers: 'How have 3X leveraged ETFs and Zero Days to Expiration (0DTE) options advanced society or contributed to our economy?' Levered funds, which allow investors to magnify their exposure to an underlying asset or index and are typically meant for short-term trading, command around $100 billion, according to data compiled by Bloomberg. They have been a favorite among market participants hoping to profit from the recent wild gyrations in stocks: A triple-levered tech fund that trades under the ticker TQQQ, for instance, has taken in more than $2.3 billion this week through Thursday, putting it on track for the biggest weekly inflow in its 15-year history. Listen to the Here's Why podcast on Apple, Spotify or anywhere you listen So-called zero-day options — which are contracts that expire within 24 hours — have also exploded in popularity, with some investors saying they can exacerbate volatility in broader equity markets. Ackman wrote that such instruments, and the overuse of leverage in general — could be a danger to the health of financial markets. The heavy use of leverage is 'driving dramatic market moves' and has made markets 'increasingly unreliable as short-term indicators of the impact of policy changes.' 'I don't understand how it is good for the world to allow investors in equities to operate with 10-1 leverage and investors in Treasurys and currencies to operate with 100-1 leverage,' Ackman wrote. Ackman's representatives didn't immediately respond to a request for comment. The fund manager isn't the first to criticize the highly volatile class of ETFs — which can magnify gains but also saddle holders with crushing losses on wrong-way bets. Recent moves in some of the funds have bolstered the views of their critics. Two levered funds focused on the cryptocurrency Ether are among the biggest losers this year, with declines of more than 80% each. And a number of vehicles focused on the battered shares of Tesla Inc. are each down around 70%. Others — including many of the issuers of the ETFs — argue that investors, for the most part, tend to understand the risks they're taking when putting their money toward high-octane instruments. In other words, they are free to bet their money on things they think will help them make a quick buck. 'As a libertarian, I'd hate to see regulators try to 'protect' investors from themselves, by tightening the screws on these powerful tools. They're wonderful for those who want to make big short-term bets,' Rob Arnott of Research Affiliates recently told Bloomberg. 'Not so great for the buy-and-hold investor. And not bad for the short-and-hold investor.' --With assistance from Denitsa Tsekova. Trump Is Firing the Wrong People, on Purpose The Beauty Salon Recession Indicator Cheap Consumer Goods Are the American Dream, Actually World Travelers Are Rethinking Vacation Plans to the US AI Coding Assistant Cursor Draws a Million Users Without Even Trying ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
11-04-2025
- Business
- Yahoo
Ted Cruz Says Senators Urged Trump to Stem Market ‘Freefall'
(Bloomberg) -- On the night of April 8, as US stocks reeled and Treasuries were selling off, a group of senators put it to President Donald Trump plainly: the market was in freefall because of his tariffs and he needed to lower the temperature. The Secret Formula for Faster Trains Midtown Office Building Evacuated on Concerns of Wall Collapse In Chicago, a Former Steel Mill Looks to Make a Quantum Leap NYC Tourist Helicopter Crashes in Hudson River, Killing Six Inside the Quiet, Extravagant Expansion of the Frick Collection 'Pick one or two countries. Cut a deal now. I don't care what countries they are. Pick one. Pick two,' Senator Ted Cruz said he told the president during the phone call. 'I said I think that will calm the market down enormously.' During the call, which lasted an hour, Trump pushed back, saying the tariffs were 'great' and 'raising a ton of money,' Cruz recounted on the Friday episode of his podcast. But the next day, senators learned at a Republican lunch that Trump announced a 90-day pause on his slate of reciprocal levies, except on China. Listen to the Here's Why podcast on Apple, Spotify or anywhere you listen. 'There was a palpable sense of relief,' Cruz said. The Texas Republican, typically one of Trump's staunchest supporters in Congress, has emerged as a vocal opponent of the president's move to ramp up tariffs. The policy poses 'enormous risks' to the US economy and makes Republicans vulnerable to a 'bloodbath' in next year's midterm elections, Cruz said last week. While US stocks staged a huge rally after Trump's pause, high volatility has continued to rattle financial markets. On his Friday podcast, Cruz again likened Trump's advisers to 'angels and demons' battling over the trade duties. The 'demons' are pushing for long-term tariffs, arguing they would raise revenues, Cruz said. But the senator warned that approach would amount to a tax on Americans. 'I think that's a terrible outcome,' he said. Trump Is Firing the Wrong People, on Purpose The Beauty Salon Recession Indicator Cheap Consumer Goods Are the American Dream, Actually World Travelers Are Rethinking Vacation Plans to the US AI Coding Assistant Cursor Draws a Million Users Without Even Trying ©2025 Bloomberg L.P. Sign in to access your portfolio
