Latest news with #JarrettRenshaw
Yahoo
3 days ago
- Business
- Yahoo
Exclusive-Trump set to waive Defense Production Act requirements to boost critical minerals
By Ernest Scheyder and Jarrett Renshaw (Reuters) - U.S. President Donald Trump is set to slash some legal requirements, including congressional approval for larger projects, to help boost domestic production of critical minerals and weapons, according to a document seen by Reuters. The document is expected to be published on the Federal Register on Wednesday, the government web site shows. The action applies to the Defense Production Act, a U.S. law that grants the president broad emergency powers to control domestic industries and resources during national security emergencies. Trump invoked the Korean War-era law in March to help boost domestic production of critical minerals, a critical industry dominated by Washington's top economic rival China. The law places some restrictions on the president's authority, such as requiring the White House to seek congressional approval for projects over $50 million and forcing project delivery dates within a year time frame. The president can waive those requirements in the event of an emergency and Trump is expected to invoke those powers, according to a document seen by Reuters. President Joe Biden invoked similar waivers to speed up production of vaccines and medical equipment during the COVID pandemic. The White House did not immediately respond to a request for comment. (Reporting By Ernest Scheyder and Jarrett Renshaw; Editing by Trevor Hunnicutt and Chizu Nomiyama)
Yahoo
3 days ago
- Business
- Yahoo
Exclusive-Trump set to waive Defense Production Act requirements to boost critical minerals
By Ernest Scheyder and Jarrett Renshaw (Reuters) - U.S. President Donald Trump is set to slash some legal requirements, including congressional approval for larger projects, to help boost domestic production of critical minerals and weapons, according to a document seen by Reuters. The document is expected to be published on the Federal Register on Wednesday, the government web site shows. The action applies to the Defense Production Act, a U.S. law that grants the president broad emergency powers to control domestic industries and resources during national security emergencies. Trump invoked the Korean War-era law in March to help boost domestic production of critical minerals, a critical industry dominated by Washington's top economic rival China. The law places some restrictions on the president's authority, such as requiring the White House to seek congressional approval for projects over $50 million and forcing project delivery dates within a year time frame. The president can waive those requirements in the event of an emergency and Trump is expected to invoke those powers, according to a document seen by Reuters. President Joe Biden invoked similar waivers to speed up production of vaccines and medical equipment during the COVID pandemic. The White House did not immediately respond to a request for comment. (Reporting By Ernest Scheyder and Jarrett Renshaw; Editing by Trevor Hunnicutt and Chizu Nomiyama)
Yahoo
3 days ago
- Automotive
- Yahoo
Global alarms rise as China's critical mineral export ban takes hold
By Jarrett Renshaw and Ernest Scheyder (Reuters) - Alarm over China's stranglehold on critical minerals grew on Tuesday as global automakers joined their U.S. counterparts to complain that restrictions by China on exports of rare earth alloys, mixtures and magnets could cause production delays and outages without a quick solution. German automakers became the latest to warn that China's export restrictions threaten to shut down production and rattle their local economies, following a similar complaint from an Indian EV maker last week. China's decision in April to suspend exports of a wide range of critical minerals and magnets has upended the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world. The move underscores China's dominance of the critical mineral industry and is seen as leverage by China in its ongoing trade war with U.S. President Donald Trump. Trump has sought to redefine the trading relationship with the U.S.' top economic rival China by imposing steep tariffs on billions of dollars of imported goods in hopes of narrowing a wide trade deficit and bringing back lost manufacturing. Trump imposed tariffs as high as 145% against China only to scale them back after stock, bond and currency markets revolted over the sweeping nature of the levies. China has responded with its own tariffs and is leveraging its dominance in key supply chains to persuade Trump to back down. Trump and Chinese President Xi Jinping are expected to talk this week and the export ban is expected to be high on the agenda. Shipments of the magnets, essential for assembling everything from cars and drones to robots and missiles, have been halted at many Chinese ports while the Chinese government drafts a new regulatory system. Once in place, the new system could permanently prevent supplies from reaching certain companies, including American military contractors. The suspension has triggered anxiety in corporate boardrooms and nations' capitals - from Tokyo to Washington - as officials scrambled to identify limited alternative options amid fears that production of new automobiles and other items could grind to a halt by summer's end. "If the situation is not changed quickly, production delaysand even production outages can no longer be ruled out," Hildegard Mueller, head of Germany's auto lobby, told Reuters on Tuesday. Frank Fannon, a minerals industry consultant and former U.S. assistant secretary of state for energy resources during Trump's first term, said the global disruptions are not shocking to those paying attention. 'I don't think anyone should be surprised how this is playing out. We have a production challenge (in the U.S.) and we need to leverage our whole of government approach to secure resources and ramp up domestic capability as soon as possible. The time horizon to do this was yesterday,' Fannon. Diplomats, automakers and other executives from India, Japan and Europe were urgently seeking meetings with Beijing officials to push for faster approval of rare earth magnet exports, sources told Reuters, as shortages threatened to halt global supply chains. A business delegation from Japan will visit Beijing in early June to meet the Ministry of Commerce over the curbs and European diplomats from countries with big auto industries have also sought "emergency" meetings with Chinese officials in recent weeks, Reuters reported. India, where Bajaj Auto warned that any further delays in securing the supply of rare earth magnets from China could "seriously impact" electric vehicle production, is organizing a trip for auto executives in the next two to three weeks. In May, the head of the trade group representing General Motors, Toyota, Volkswagen, Hyundai and other major automakers raised similar concerns in a letter to the Trump administration. "Without reliable access to these elements and magnets,automotive suppliers will be unable to produce criticalautomotive components, including automatic transmissions,throttle bodies, alternators, various motors, sensors, seatbelts, speakers, lights, motors, power steering, and cameras,"the Alliance for Automotive Innovation wrote in the letter. (Reporting By Jarrett Renshaw; additional reporting by Ernest Scheyder in Washington; editing by Chris Sanders and Marguerita Choy)
Yahoo
3 days ago
- Automotive
- Yahoo
Global alarms rise as China's critical mineral export ban takes hold
By Jarrett Renshaw and Ernest Scheyder (Reuters) - Alarm over China's stranglehold on critical minerals grew on Tuesday as global automakers joined their U.S. counterparts to complain that restrictions by China on exports of rare earth alloys, mixtures and magnets could cause production delays and outages without a quick solution. German automakers became the latest to warn that China's export restrictions threaten to shut down production and rattle their local economies, following a similar complaint from an Indian EV maker last week. China's decision in April to suspend exports of a wide range of critical minerals and magnets has upended the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world. The move underscores China's dominance of the critical mineral industry and is seen as leverage by China in its ongoing trade war with U.S. President Donald Trump. Trump has sought to redefine the trading relationship with the U.S.' top economic rival China by imposing steep tariffs on billions of dollars of imported goods in hopes of narrowing a wide trade deficit and bringing back lost manufacturing. Trump imposed tariffs as high as 145% against China only to scale them back after stock, bond and currency markets revolted over the sweeping nature of the levies. China has responded with its own tariffs and is leveraging its dominance in key supply chains to persuade Trump to back down. Trump and Chinese President Xi Jinping are expected to talk this week and the export ban is expected to be high on the agenda. Shipments of the magnets, essential for assembling everything from cars and drones to robots and missiles, have been halted at many Chinese ports while the Chinese government drafts a new regulatory system. Once in place, the new system could permanently prevent supplies from reaching certain companies, including American military contractors. The suspension has triggered anxiety in corporate boardrooms and nations' capitals - from Tokyo to Washington - as officials scrambled to identify limited alternative options amid fears that production of new automobiles and other items could grind to a halt by summer's end. "If the situation is not changed quickly, production delaysand even production outages can no longer be ruled out," Hildegard Mueller, head of Germany's auto lobby, told Reuters on Tuesday. Frank Fannon, a minerals industry consultant and former U.S. assistant secretary of state for energy resources during Trump's first term, said the global disruptions are not shocking to those paying attention. 'I don't think anyone should be surprised how this is playing out. We have a production challenge (in the U.S.) and we need to leverage our whole of government approach to secure resources and ramp up domestic capability as soon as possible. The time horizon to do this was yesterday,' Fannon. Diplomats, automakers and other executives from India, Japan and Europe were urgently seeking meetings with Beijing officials to push for faster approval of rare earth magnet exports, sources told Reuters, as shortages threatened to halt global supply chains. A business delegation from Japan will visit Beijing in early June to meet the Ministry of Commerce over the curbs and European diplomats from countries with big auto industries have also sought "emergency" meetings with Chinese officials in recent weeks, Reuters reported. India, where Bajaj Auto warned that any further delays in securing the supply of rare earth magnets from China could "seriously impact" electric vehicle production, is organizing a trip for auto executives in the next two to three weeks. In May, the head of the trade group representing General Motors, Toyota, Volkswagen, Hyundai and other major automakers raised similar concerns in a letter to the Trump administration. "Without reliable access to these elements and magnets,automotive suppliers will be unable to produce criticalautomotive components, including automatic transmissions,throttle bodies, alternators, various motors, sensors, seatbelts, speakers, lights, motors, power steering, and cameras,"the Alliance for Automotive Innovation wrote in the letter. (Reporting By Jarrett Renshaw; additional reporting by Ernest Scheyder in Washington; editing by Chris Sanders and Marguerita Choy) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Maverick
3 days ago
- Business
- Daily Maverick
US pushes countries for best offers by Wednesday as tariff deadline looms
Trump administration wants countries to detail tariff rates, potential US investments Trade group welcomes move to accelerate trade talks USTR draft letter reveals urgency to finalize deals with trading partners Court ruling challenges legality of Trump's sweeping tariff policies By Jarrett Renshaw The draft, from the office of the United States Trade Representative, provides a window into how President Donald Trump plans to bring to a close unwieldy negotiations with dozens of countries that kicked off on April 9 when he paused his 'Liberation Day' tariffs for 90 days until July 8 after stock, bond and currency markets revolted over the sweeping nature of the levies. The document suggests an urgency within the administration to complete deals against its own tight deadline. While officials such as White House economic adviser Kevin Hassett have repeatedly promised that several agreements were nearing completion, so far only one agreement has been reached with a major U.S. trading partner: Britain. Even that limited pact was more akin to a framework for ongoing talks than a final deal. In the draft, the U.S. is asking countries to list their best proposals in a number of key areas, including tariff and quota offers for purchase of U.S. industrial and agricultural products and plans to remedy any non-tariff barriers. Other requested items include any commitments on digital trade and economic security, along with country-specific commitments, according to the letter. The U.S. will evaluate the responses within days and offer 'a possible landing zone' that could include a reciprocal tariff rate, according to the letter. It was unclear which countries would receive the letter, but it was directed at those with active negotiations that included meetings and exchanges of documents. Washington has been engaged in such talks with the European Union, Japan, Vietnam and India, among others. A USTR official said trade talks were ongoing. 'Productive negotiations with many key trading partners continue at a rapid pace. It is in all parties' interest to take stock of progress and assess any next steps.' 'REGARDLESS OF ONGOING LITIGATION' Tiffany Smith, vice president of global trade policy at the National Foreign Trade Council, welcomed the USTR moves. 'We are encouraged that USTR is moving negotiations ahead as quickly as they can,' she told Reuters, adding that trade deals that removed barriers for U.S. companies abroad and lowered U.S. tariffs would be 'a win-win if they are done in a way that returns predictability and stability to trade relationships.' Trump's ambitious – and often frenetic – tariff policy is a pillar of his 'America First' economic agenda as he seeks to reshape U.S. trade relationships, reduce trade deficits and protect American industries. Republican lawmakers are also banking on tariffs to add to federal revenue and offset the cost of the tax cut legislation now working its way through Congress. Trump's tariff policies have taken investors on a rollercoaster ride. In May, U.S. stocks held their biggest rally of any month since November 2023, but that was after global indexes had cratered under the barrage of Trump's tariff announcements through February, March and early April. Stocks were little changed on Monday afternoon after Trump announced a surprise doubling of tariffs on steel and aluminum imports on Friday at an event in Pittsburgh. Meanwhile, the legality of the approach used for imposing the most sweeping of his tariffs has been cast into doubt. Last Wednesday, the Court of International Trade ruled that Trump had overstepped his authority with tariffs devised under the International Emergency Economic Powers Act, including the 'Liberation Day' levies and earlier ones imposed on goods from Canada, Mexico and China related to Trump's accusations that the three countries have facilitated the flow of fentanyl into the U.S. Less than 24 hours later, an appeals court temporarily paused that decision. The tariffs at the center of the legal dispute are expected to remain in effect as the case plays out. The draft letter to trading partners warns them not to believe the tariffs will be sidelined if the court rules against Trump's use of the IEEPA. 'Regardless of ongoing litigation concerning the President's reciprocal tariff action in U.S. courts, the President intends to continue this tariff program pursuant to other robust legal authorities if necessary, so it is important that we continue our discussions on these matters,' the draft says.
