Latest news with #Liberationday
Yahoo
a day ago
- Business
- Yahoo
US Treasury Secretary Scott Bessent says Trump is focused on mortgages, cars, real wage gains
Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. In a stunning reversal of policy, President Donald Trump slashed 'Liberation day' tariffs on China from 145% to 30% for 90 days as of May 14. The landmark agreement between the world's two largest economies has gained traction — erasing the stock market's losses in the wake of 'Liberation day' tariffs in early April. While negotiations are still ongoing, U.S. Treasury Secretary Scott Bessent said that the goal is to drive strategic decoupling between the two superpowers. 'We do not want a generalized decoupling from China,' Bessent said during an interview with CNBC. 'But what we do want is a decoupling for strategic necessities, which we were unable to obtain during Covid and we realized that efficient supply chains were not resilient supply chains.' Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how BlackRock CEO Larry Fink has an important message for the next wave of American retirees — here's how he says you can best weather the US retirement crisis Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) However, industry-specific tariffs remain in place. This is part of Trump's greater push to revive the country's manufacturing sector. 'We are going to create our own steel. [Tariffs] protect our steel industry. They work on critical medicines, on semiconductors,' Bessent said 'We are doing that, and the reciprocal tariffs have nothing to do with the specific-industry tariffs.' But affordability remains one of the biggest concerns for Americans. The average tariff rate on imports stands at 17.8% — the highest since 1934. This is expected to cost median households in the U.S. approximately $2,800, according to a recent Yale Budget Lab report. However, Bessent argues that affordability isn't just about cheap imports — it's about ensuring Americans can build real financial security. 'What I'm saying is the American dream is not 'let them eat flat screens,'' Bessent noted during an appearance on NBC's Meet the Press. 'If American families aren't able to afford a home, don't believe that their children will do better than they are [doing], the American dream is not contingent on cheap baubles from China, it is more than that. And we are focused on affordability, but it's mortgages, it's cars, it's real wage gains.' Read more: Rich, young Americans are ditching the stormy stock market — Bessent's remarks highlight one of the most pressing financial issues for Americans today: the soaring cost of homeownership. Over the last decade, U.S. home prices have surged, with the S&P CoreLogic Case-Shiller U.S. National Home Price Index nearly doubling. Federal Reserve Chair Jerome Powell has acknowledged the severity of the problem, pointing to supply constraints as a key driver. 'The real issue with housing is that we have had, and are on track to continue to have, not enough housing,' Powell said at a press conference in September. He explained that 'all aspects of housing' face challenges, including the zoning of land in desirable locations. 'Where are we going to get the supply?' he asked. The gap between supply and demand is significant. An analysis by Zillow in June estimated the U.S. housing shortage at 4.5 million homes as of 2022. There's also the issue of high mortgage rates, which stand at around 6.67%, meaning borrowing money to buy a home remains expensive. If you're in the market for a home, Freddie Mac recommends shopping around by obtaining quotes from three to five lenders to secure the best mortgage rate possible. Even a small rate reduction can translate into significant savings over the life of a loan. Bessent also pointed to cars as part of America's affordability issue. Even though pandemic-induced supply chain disruptions and chip shortages have eased, the cost of owning a car remains high. According to the American Automobile Association (AAA), the total cost of owning and operating a new vehicle in 2024 has climbed to around $12,297 per year — or $1,024.71 per month. One major recurring expense is car insurance, and many people overpay without realizing it. According to Forbes, the national average cost for full-coverage car insurance in 2024 was $2,149 per year (or $179 per month). However, rates can vary widely depending on your state, driving history and vehicle type. By using you can easily compare quotes from multiple insurers, such as Progressive, Allstate and GEICO, to ensure you're getting the best deal. In just two minutes, you could find rates as low as $29 per month. With home values higher than ever, you can make your home work harder for you by making the most of your equity. The average homeowner sits on roughly $311,000 in equity as of the third quarter of 2024, according to CoreLogic. Having access to your home equity could help to cover unexpected expenses, pay substantial debt, fund a major purchase like a home renovation or supplement income from your retirement nest egg. Rates on HELOCs and home equity loans are typically lower than APRs on credit cards and personal loans, making it an appealing option for homeowners with substantial equity. JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it's too late) Are you rich enough to join the top 1%? Here's the net worth you need to rank among America's wealthiest — plus a few strategies to build that first-class portfolio You're probably already overpaying for this 1 'must-have' expense — and thanks to Trump's tariffs, your monthly bill could soar even higher. Here's how 2 minutes can protect your wallet right now Access to this $22.5 trillion asset class has traditionally been limited to elite investors — until now. Here's how to become the landlord of Walmart or Whole Foods without lifting a finger Terms and Conditions apply. NMLS# 1136 This article provides information only and should not be construed as advice. It is provided without warranty of any kind. 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
IOL News
4 days ago
- Business
- IOL News
No Permanent Friends nor Foes in Global Politics
Chinese President Xi Jinping shakes hands with European Commission President Ursula von der Leyen as they leave after holding a trilateral meeting, which included the French President, as part of the Chinese president's two-day state visit, at the Elysee Palace in Paris, on May 6, 2024. The idea of the world changing has become a habit, year-on-year, that statement provides no new information. Nonetheless, this opinion points out that what is happening [with strong support] is that global relationships are changing–old friends have become foes and new friends have been foes. This particular change rings true for the US and elsewhere. It also provides hope for ongoing disagreements, conflicts and war. Looking at tariffs, China has seen some of the highest rates against it by any country, in the form of Trump's Liberation day tariffs. Since 14 May, both the United States and China have agreed to suspend 90% of their Liberation Day tariffs for a period of 90 days and have withdrawn several other retaliatory duties. As a result, tariffs imposed by the US on Chinese goods dropped to 30%, while China will reduce its tariffs on American products to 10%. Although this does not signify a friendship, it does signal a willingness to reconvene on measures through communication. It indicates that the relationship between China and the US were at its worst when the US announced the Liberation Day tariffs (145%) against China. China and the European Union have traditionally maintained stable relations, with minimal conflict over core interests and strong economic and cultural ties. By 2022, China had become the EU's top import source and third-largest export destination, with bilateral trade surpassing €856 billion. European firms like Siemens, Airbus, and BMW are heavily invested in the Chinese market, fostering collaboration in technology and industry. However, mounting political pressure from the United States has disrupted this trajectory, prompting the EU to impose curbs on Chinese tech companies, scrutinise investments, and restrict academic exchanges—moves driven more by external influence than inherent discord. Amid Donald Trump's renewed political presence and his assertive 'America First' stance, the EU is increasingly recognising the value of strategic autonomy, pushing for a more balanced foreign policy and a reimagined, independent engagement with China. BRICS has played a fundamental role in relationship-building, particularly amongst those members of the global south. In fact, the beginning of this year saw Indonesia join as an official member of BRICS and official partners: Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan. These relationships entail economic, social, political, and environmental engagement fostering a commitment to shared development. The grouping is instrumental regarding the strong relationships between–China-Russia, China-South Africa, South Africa-Brazil. The grouping reinforces the autonomy of its members and partners often creating a revived awareness of previous or current relations that are or were exploitative and infringes national autonomy. On the point of relations there exists wars and conflicts that seem very permanent with no resolution in sight. The Russia-Ukraine conflict has seen devastations that killed many. Many countries are attempting to find a solution to the situation, for example, China, the EU, and South Africa. Putin and Trump's relationship appears strained by recent reports, as Trump attempts to have Ukraine & Russia come to a consensus, his efforts have seemingly rendered itself meaningless. The Israel-Palestine conflict is one that has perpetuated for many years since 1948 when Israel became a sovereign state. This conflict puts to task the notion that there are no permanent enemies. It has no real time when it will stop, even with external efforts to alleviate the issues. The US has positioned itself as an ardent supporter of Israel and other nations, like South Africa, are bastions for the cause of the Palestinian people. It is thus unsurprising that the US, under Trump, has accused South Africa of a fictitious 'white genocide' as South Africa has taken Israel to the International Court of Justice (ICJ) for the genocide of the Palestinian people. There are, in fact, very real genocides (at cumulative recorded deaths) in Sudan and the Democratic Republic of Congo (DRC) as examples. The principle that there are no permanent friends or foes in global politics is more visible in today's rapidly shifting geopolitical climate. Relationships once thought stable—like those between the US and the EU—are evolving under pressure, revealing both fragility and potential. While tariff wars and political tensions mark deep rifts, temporary pauses in hostility and renewed dialogue suggest that cooperation remains possible, even after periods of hostility. However, perpetual conflicts such as those in Ukraine and Palestine challenge this notion, raising critical questions about whether some enmities can truly end. Amid this complexity, BRICS and its expanding network offer hope for a more balanced, multipolar world—where nations from the Global South engage on more equal terms, are weary of external pressures, and reaffirm their sovereignty through strategic partnerships. In a world of fickle loyalties and enduring struggles, BRICS stands as a testament to the possibility of resilient and principled international cooperation. Written By: *Cole Jackson Lead Associate at BRICS+ Consulting Group Chinese & South American Specialist **The Views expressed do not necessarily reflect the views of Independent Media or IOL.
The Star
23-05-2025
- Business
- The Star
Markets slump as Trump recommends 50% tariff on EU, targets Apple
US President Donald Trump. — Bloomberg LONDON: U.S. President Donald Trump said on Friday he is recommending a straight 50% tariff on goods from the European Union starting on June 1, saying the EU has been hard to deal with on trade. Stock markets across Europe fell sharply with the STOXX 600 index last down 1.8%, U.S. stock index futures moved sharply lower while the euro trimmed its gains. Trump earlier said he would impose at 25% tariff on Apple iPhones that were sold, but not manufactured, in the United States, sending the company's shares down sharply in premarket trading and weighing on the tech sector more broadly. COMMENTS: ON EU TARIFFS: HOLGER SCHMIEDING, CHIEF ECONOMIST, BERENBERG, LONDON: "This is a major escalation of trade tensions. With Trump you never know but this would be a major escalation. The EU would have to react and it is something that would really hurt the US and European economy. But Trump is highly volatile and I would not bet on this coming through." GERRY FOWLER, HEAD OF EUROPEAN EQUITY STRATEGY, UBS, LONDON: "The 10% tariff that Europe is currently experiencing was always going to be a best case scenario considering that's what the UK was able to achieve anyway. So tariffs were likely to go up, they could obviously in the worst case scenario not only be 20% but potentially higher, but also cause retaliation against some of the Mag 7. So this is much worse but it is also a bit like the China tariffs -probably not a sustainable tariff. "Even the fact that he's used the phrase "I recommend' suggests this is part of the late stage negotiation tactics. But if they're even close to being implemented, then obviously Europe's retaliation would be very significant so quite problematic." FIONA CINCOTTA, SENIOR MARKET ANALYST, CITY INDEX, LONDON: "The market was in this sense of perhaps there are going to be trade deals and worst case scenario is potentially being avoided after Liberation day and then there was that pause. But this latest threat is worse than the worst case scenario." "We're seeing a big impact in equities in Germany particularly, because they're very much an export nation to the US, which will be impacted and so those companies are going to see profits hit, they're going to see revenue and margins hit. So we're seeing the this play out much more in the equities market than others." JOHN CANAVAN, LEAD ANALYST, OXFORD ECONOMICS "Treasury yields are lower ahead of the open this morning in response to a safe-haven bid over the past few minutes on additional tariff threats from President Trump. U.S. equity index futures spent most of the night narrowly mixed, but have declined on the latest development. The dollar index has been falling steadily throughout the night, with additional losses after the latest tariff threats." ON APPLE TARIFFS: MATTHEW TUTTLE, CHIEF EXECUTIVE OFFICER, TUTTLE CAPITAL MANAGEMENT, RIVERSIDE, CONNECTICUT "The flip-side of Trump's inner circle are the stocks that Trump has issues with. That will impact Apple, at least today. It should also impact any other tech names making products overseas." DANIEL IVES, ANALYST, WEDBUSH SECURITIES, NEW YORK "This would result in an iPhone price point that is a non-starter for Cupertino and translate into iPhone prices of ~$3,500 if it was made in the U.S. which is not realistic as this would take 5-10 years to shift production to the U.S. We believe the concept of Apple producing iPhones in the US is a fairy tale that is not feasible." - Reuters
Saudi Gazette
13-05-2025
- Business
- Saudi Gazette
Markets rise as US and China agree to slash tariffs
SINGAPORE — Share markets jumped on Monday after President Trump said weekend talks had resulted in a "total reset" in trade terms between the US and China, a move which goes some way to defuse the high stakes stand-off between the two countries. The talks in Switzerland resulted in significant cuts to the tit-for-tat tariffs that had been stacked up since January on both sides. The US will lower those tariffs from 145% to 30%, while China's retaliatory tariffs on US goods will drop to 10% from 125%. President Trump told reporters, that, as some of the levies have been suspended rather than canceled altogether, they might rise again in three months time, if no further progress was made. However, he said he did not expect them to return to the previous 145% peak. "We're not looking to hurt China," Trump said after the agreement was announced, adding that China was "being hurt very badly"."They were closing up factories. They were having a lot of unrest, and they were very happy to be able to do something with us."He said he expected to speak to Chinese President Xi Jinping "maybe at the end of the week".Investors welcomed the de-escalation. The S&P 500 index jumped more than 3.2% after the announcement, while the Dow climbed 2.8% and the Nasdaq had surged 4.3% by the end of the gains left the indexes roughly where they started the year, fully recovered from the losses they sustained in the aftermath of the 2 April tariffs announcement, dubbed "Liberation Day" by the Trump as a campaign to give Americans a fairer deal from international trade, the US announced a universal baseline tariff on all imports to the 60 trading partners, which the White House described as the "worst offenders", were subjected to higher rates than others, and this included retaliated with tariffs of its own, which led to levies being ratcheted up on both sides, sending shares sharply the new agreement, the US is reducing the "reciprocal" tariff on Chinese goods that it announced on "Liberation day" to 10%. But it said the higher levy rate was being suspended for 90 days, rather than removed US is also keeping in place the extra 20% tariff aimed at putting pressure on Beijing to do more to curb the illegal trade in fentanyl, a powerful opioid its part, China is also reducing to 10% the retaliation tariffs they put in place in response to Trump's "Liberation day" announcement, again suspended for three has also agreed to "suspend or remove" all non-tariff measures against the tariffs, including higher sector-specific tariffs on things like steel and cars, remain in additional retaliatory tariffs, that were added subsequently, have been cancelled altogether on both retreat comes as the first impacts from the tariff-war were beginning to show, with US ports reporting a sharp drop in the number of ships scheduled to arrive from output has slowed in China, and there are reports of firms laying off workers, as US orders dried commerce ministry said the agreement was an important step to "resolve differences" which would help to "deepen co-operation".Tat Kei, a Chinese exporter of personal care appliances to the US, whose factory employs 200 people in Shenzhen, welcomed the announcement, but said he still feared what else might be to come."President Trump is going to be here for the next three-and-a-half years. I don't think this is going to be the end of it... not by a long shot," he told the Li, head of Greater China at Atlas Ways, which offers services for Chinese enterprises' global development, also said she believed many Chinese firms would treat the reprieve as temporary."For businesses, the best they can do is build a moat around their company before the next round of tariffs arrives," she Wall Street Target, Home Depot and Nike were among companies that saw their share price rise sharply on the news. Tech firms including Nvidia, Amazon, Apple and Facebook-owner Meta also moved sharply stocks rose on Monday, and earlier Hong Kong's benchmark Hang Seng Index had ended the day up 3%.The deal has boosted shares in shipping companies, with Denmark's Maersk up more than 12% and Germany's Hapag-Lloyd jumping 14%.Maersk told the BBC the US-China agreement was "a step in the right direction" and that it now hoped for "a permanent deal that can create the long-term predictability our customers need."In the US, the National Retail Federation (NRF) said it was encouraged by the "constructive" negotiations."This temporary pause is a critical first step to provide some short-term relief for retailers and other businesses that are in the midst of ordering merchandise for the winter holiday season," said NRF president Matthew International Chamber of Commerce said the deal sent a clear signal that the US and China both wanted to avoid a "hard decoupling"."Ultimately, we hope this weekend's agreement lays the foundation to lift the cloud of trade policy uncertainty that continues to weigh on investment, hiring, and demand across the world," said deputy secretary-general, Andrew gold price - which has benefited from its safe-haven status in recent weeks given the disruption caused by the tariffs - fell 3.1% to $3,223.57 an ounce. — BBC
Spectator
08-05-2025
- Business
- Spectator
Could Trump's UK deal start a golden age of free trade?
We had the shock of 'Liberation day' when punitive tariffs were levied on imports from virtually every country in the world. That was the destructive part of Donald Trump's trade war. Now we enter phase two: trying to put things back together again. The announcement of trade deal with a 'big and highly-respected country' (believed to be the UK) on Thursday morning is significant not just in itself but because Trump added the suggestion that this will be 'the first of many'. His strategy has become clear: last month's tariffs were shock therapy intended to precipitate a round of trade deals which would rebalance trade in America's favour. They were not intended as a permanent fixture – at least not at the levels announced on 2 April. We don't know the details yet. It may turn out that the US-UK deal is so weighted in the US's favour that other countries and trade blocs like the EU are repelled by the prospect of doing such a deal themselves.
