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Yahoo
2 hours ago
- Business
- Yahoo
Trump promises to hike steel and aluminum tariffs to 50%
Markets on Wall Street inched up quietly early Wednesday as President Donald Trump's 50% tariffs on imports of steel and aluminum were due to kick in and U.S and European trade officials met in Paris to negotiate their tariff spat. Futures for the S&P 500, the Dow Jones Industrial Average and Nasdaq all rose 0.2% in light trading before the bell. The European Union's top trade negotiator, Maroš Šefčovič, met Wednesday with his American counterpart, U.S. Trade Representative Jamieson Greer, on the sidelines of a meeting of the Organisation for Economic Cooperation and Development. Šefčovič said talks were 'advancing in the right direction at pace.' Few expect Brussels and Washington to reach a substantive trade agreement in Paris because the issues dividing them are too difficult to resolve quickly. There has been no official update on the status of the steel and aluminum tariffs as of early Wednesday morning. Those tariffs are expected to hit a broad range of businesses hard and likely push up prices for consumers. Foreign-made steel and aluminum is used in household products like soup cans and paper clips as well as big-ticket items like a stainless-steel refrigerators and cars. Economists warn that the latest tariffs will significantly squeeze the wallets of both companies and shoppers alike. Hopes remain high on Wall Street that Trump will reach trade deals with other countries that will ultimately lower tariffs, particularly with the world's second-largest economy. The U.S. side said Trump was expecting to speak with Chinese leader Xi Jinping this week. In equities trading, Wells Fargo rose 2.5% after the Federal Reserve lifted its asset cap on Tuesday and said the bank is no longer subject to the harsh restraints placed on it in 2018 for having a toxic sales and banking culture. Wells has spent the better part of a decade trying to restore its image with the public and convince policymakers that it had changed its ways. Shares of Dollar Tree dipped 1.8% before the bell despite Wednesday's strong first-quarter sales and profit report. Investors were spooked by the discount retailer's forecast, which estimated as much as a 50% drop in second-quarter earnings per share due to cost pressures from higher tariffs. A day earlier, rival Dollar General posted a quarterly sales record of $10.44 billion and upgraded its annual profit and sales outlook as Americans tighten their budgets and spend more at bargain stores. CrowdStrike, the cybersecurity company that Delta Air Lines has sued for a technology outage last summer, fell 7% after it issued lighter second-quarter guidance than analysts were expecting. Elsewhere, in Europe at midday, Germany's DAX and the CAC 40 in Paris each gained 0.7%, while Britain's FTSE 100 inched up 0.2%. South Korea's Kospi led gains in Asia, jumping 2.7% to 2,770.84 after the liberal opposition candidate Lee Jae-myung was elected president. Lee's victory caps months of political turmoil triggered by the stunning but brief imposition of martial law by the now-ousted conservative leader Yoon Suk Yeol. Top priorities will include government spending and trade negotiations with the United States. Tokyo's Nikkei 225 index surged 0.8% to 37,747.45 on gains for technology and pharmaceutical companies. Toyota Motor Corp.'s shares rose 1.9% after it announced it was buying Toyota Industries Corp., a maker of auto parts and lift trucks, for $33 billion and taking it private. Toyota Industries' shares tumbled nearly 12%. Chinese shares were modestly higher. The Hang Seng in Hong Kong added 0.6% to 23,654.03, while the Shanghai Composite index gained 0.4% to 3,376.20. In Australia, the S&P/ASX 200 closed 0.9% higher at 8,541.80. Taiwan's Taiex climbed 2.3%. Treasury yields held relatively steady following Tuesday's encouraging report on the U.S. job market. It's a cooldown from a sharp rise for yields over the last two months. Yields had been climbing in part on worries about how the U.S. government may be set to add trillions of dollars to its debt through tax cuts. Higher Treasury yields make it more expensive for U.S. households and businesses to borrow money and can discourage investors from paying high prices for stocks and other investments. In energy trading, U.S. benchmark crude oil added 3 cent to $63.44 per barrel. Brent crude, the international standard, rose 5 cents to $65.68 per barrel. The U.S. dollar rose to 144.19 Japanese yen from 144 yen. The euro rose to $1.1386 from $1.1370. Download the and apps to get breaking news and weather alerts. Watch or with the new . Follow us on social media: Close Thanks for signing up! Watch for us in your inbox. Subscribe Now Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Fast Company
2 hours ago
- Business
- Fast Company
Trade reps for U.S. and Europe meet in Paris to settle tariff tensions. Here's what's on the table
Europe and the United States are meeting in Paris to negotiate a settlement of a tense tariff spat with global economic ramifications between two global economic powerhouses. The European Union's top trade negotiator, Maroš Šefčovič, met Wednesday with his American counterpart, U.S. Trade Representative Jamieson Greer, on the sidelines of a meeting of the Organisation for Economic Cooperation and Development. 'We're advancing in the right direction at pace,' Šefčovič said at a news conference. He said ongoing technical meetings between EU and U.S. negotiators in Washington would be soon followed by a video conference between himself and Greer to then 'assess the progress and charter the way forward.' Brussels and Washington are unlikely to reach a substantive trade agreement in Paris. The issues dividing them are too difficult to resolve quickly. President Donald Trump regularly fumes about America's persistent trade deficit with the European Union, which was a record $161 billion last year, according to the U.S. Commerce Department. Trump blames the gap between what the U.S. sells and what it buys from Europe on unfair trade practices and often singles out for criticism the EU's 10% tax on imported cars. America's was 2.5% until Trump raised it to 25% in April. The EU has argued its purchases of U.S. services, especially in the technology sector, all but overcome the deficit. After the Trump administration's surprise tariffs last week on steel rattled global markets and complicated the ongoing, wider tariff negotiations between Brussels and Washington, the EU on Monday said it is preparing 'countermeasures' against the U.S. The EU has offered the U.S. a 'zero for zero' deal in which both sides end tariffs on industrial goods, including autos. Trump has rejected that idea, but EU officials say it's still on the table. The EU could buy more liquefied natural gas and defense items from the U.S., and lower duties on cars, but it isn't likely to budge on calls to scrap the value added tax, which is akin to a sales tax, or open up the EU to American beef. 'We still have a few weeks to have this discussion and negotiation,' French Trade Minister Laurent Saint-Martin said in Paris on Wednesday ahead of the OECD meeting. 'If the discussion and negotiation do not succeed, Europe is capable of having countermeasures on American products and services as well.' Greta Peisch, who was general counsel for the U.S. trade representative in the Biden administration, said the zero-for-zero proposal could provide a way to make progress if the Trump administration 'is looking for a reason not to impose tariffs on the EU.' But Peisch, now a partner at the Wiley Rein law firm, wondered: 'How motivated is the U.S. to come to a deal with the EU?' Trump, after all, has longstanding grievances and complaints about EU trade practices. One target of his ire is the value-added tax, similar to U.S. state sales taxes. Trump and his advisers consider VATs unfair protectionism because they are levied on U.S. products. But VATs are set at a national level, not by the EU, and apply to domestic and imported products alike, so they have not traditionally been considered a trade barrier. There is little chance governments will overhaul their tax systems to appease Trump. Likewise, the Europeans are likely to balk at U.S. demands to scrap food and safety regulations that Washington views as trade barriers. These include bans on hormone-raised beef, chlorinated chicken and genetically modified foods. 'When you start talking about chickens or GMOs or automobile safety standards, you're talking about the ways countries choose to regulate their economies,' Peisch said. 'We think that's protectionist. They think it's keeping their citizens healthy . . . It's been a sore point for 60 years.'
Time of India
4 hours ago
- Business
- Time of India
Wall Street edges higher as US-EU trade talks unfold; global markets broadly gain
US stock market today: Markets on Wall Street moved slightly higher in early trading on Wednesday as investors monitored the onset of President Donald Trump's 50% tariffs on steel and aluminum imports. Meanwhile, U.S. and European trade officials met in Paris to negotiate a resolution to their ongoing tariff dispute. At the open, the Dow Jones Industrial Average was up 64.12 points, or 0.15%, at 42,583.76, while the S&P 500 gained 12.73 points, or 0.21%, to 5,983.10. The Nasdaq Composite also advanced, rising 47.46 points, or 0.25%, to 19,446.42. Meanwhile, Futures on all three major US indices—the S&P 500, Dow Jones Industrial Average, and Nasdaq—rose by 0.2% in early, low-volume trading. The European Union's top trade negotiator, Maroš Šefčovič, met with US Trade Representative Jamieson Greer on the sidelines of an Organisation for Economic Cooperation and Development (OECD) meeting in Paris. Šefčovič described the discussions as 'advancing in the right direction at pace.' However, expectations for a major breakthrough remain low, as key differences between Brussels and Washington are unlikely to be resolved swiftly. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like コンピュータでゲームをするのが好きなら、この新しいアドベンチャーゲームは必ずプレイすべきです。 アドベンチャーゲーム ゲームをプレイ Undo As of early Wednesday, there was no formal update regarding the status of the steel and aluminum tariffs, which are anticipated to significantly impact a wide range of industries and contribute to rising costs for consumers. Steel and aluminum sourced from abroad are key components in both everyday items such as soup cans and paper clips, as well as large consumer goods like stainless-steel refrigerators and automobiles. Economists have cautioned that these tariffs could severely strain both businesses and consumers financially. Still, optimism lingers on Wall Street that President Trump may eventually secure trade agreements that ease tariffs, especially with major economies. US officials noted Trump is expected to speak with Chinese President Xi Jinping later this week. Among individual stocks, Wells Fargo advanced 2.5% after the Federal Reserve lifted its asset cap on Tuesday. The central bank stated that the lender is no longer subject to the strict limits imposed in 2018 following its sales scandal. The bank has spent several years working to rebuild trust and demonstrate improved governance. Shares of Dollar Tree fell 1.8% in premarket trading, despite posting strong first-quarter results. The pullback was driven by the company's cautious forecast, which projected up to a 50% decline in second-quarter earnings per share due to tariff-related cost pressures. A day earlier, rival Dollar General reported record quarterly sales of $10.44 billion and raised its full-year profit and sales outlook, reflecting increased spending at discount retailers. Cybersecurity firm CrowdStrike dropped 7% after its second-quarter guidance fell short of analyst expectations. The company is also facing legal action from Delta Air Lines over a technology outage last summer. In European markets, Germany's DAX and France's CAC 40 each rose 0.7% at midday, while the UK's FTSE 100 edged up 0.2%. In Asia, South Korea's Kospi led gains, surging 2.7% to 2,770.84 following the election of liberal opposition candidate Lee Jae-myung as president. His win concludes a period of political upheaval triggered by conservative leader Yoon Suk Yeol's brief imposition of martial law. Lee is expected to prioritize fiscal spending and advance trade negotiations with the US Japan's Nikkei 225 rose 0.8% to 37,747.45, supported by strength in technology and pharmaceutical stocks. Toyota Motor Corp gained 1.9% after revealing plans to acquire Toyota Industries Corp.—a supplier of auto components and lift trucks—for $33 billion and take the company private. Shares of Toyota Industries declined nearly 12% in response. Hong Kong's Hang Seng Index was up 0.6% to 23,654.03, and the Shanghai Composite Index rose 0.4% to 3,376.20. In Australia, the S&P/ASX 200 closed 0.9% higher at 8,541.80. Taiwan's Taiex jumped 2.3%. US Treasury yields remained steady following Tuesday's upbeat job market data, marking a pause after a two-month upward trend. Yields had previously risen on concerns over the US government's growing fiscal deficit amid proposed tax cuts. Elevated yields can raise borrowing costs for households and businesses and weigh on stock valuations. In the energy market, US benchmark crude oil rose 3 cents to $63.44 per barrel. Brent crude, the international standard, gained 5 cents to $65.68 per barrel. On the currency front, the US dollar strengthened slightly to 144.19 Japanese yen from 144. The euro edged up to $1.1386 from $1.1370. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
4 hours ago
- Business
US and Europe trade negotiators discuss tariffs in Paris
PARIS -- Europe and the United States are meeting in Paris to negotiate a settlement of a tense tariff spat with global economic ramifications between two global economic powerhouses. The European Union's top trade negotiator, Maroš Šefčovič, met Wednesday with his American counterpart, U.S. Trade Representative Jamieson Greer, on the sidelines of a meeting of the Organisation for Economic Cooperation and Development. 'We're advancing in the right direction at pace,' Šefčovič said at a news conference. He said ongoing technical meetings between EU and U.S. negotiators in Washington would be soon followed by a video conference between himself and Greer to then "assess the progress and charter the way forward.' Brussels and Washington are unlikely to reach a substantive trade agreement in Paris. The issues dividing them are too difficult to resolve quickly. President Donald Trump regularly fumes about America's persistent trade deficit with the European Union, which was a record $161 billion last year, according to the U.S. Commerce Department. Trump blames the gap between what the U.S. sells and what it buys from Europe on unfair trade practices and often singles out for criticism the EU's 10% tax on imported cars. America's was 2.5% until Trump raised it to 25% in April. The EU has argued its purchases of U.S. services, especially in the technology sector, all but overcome the deficit. After the Trump administration's surprise tariffs last week on steel rattled global markets and complicated the ongoing, wider tariff negotiations between Brussels and Washington, the EU on Monday said it is preparing 'countermeasures' against the U.S. The EU has offered the U.S. a 'zero for zero' deal in which both sides end tariffs on industrial goods, including autos. Trump has rejected that idea, but EU officials say it's still on the table. The EU could buy more liquefied natural gas and defense items from the U.S., and lower duties on cars, but it isn't likely to budge on calls to scrap the value added tax, which is akin to a sales tax, or open up the EU to American beef. 'We still have a few weeks to have this discussion and negotiation," French Trade Minister Laurent Saint-Martin said in Paris on Wednesday ahead of the OECD meeting. 'If the discussion and negotiation do not succeed, Europe is capable of having countermeasures on American products and services as well." Greta Peisch, who was general counsel for the U.S. trade representative in the Biden administration, said the zero-for-zero proposal could provide a way to make progress if the Trump administration 'is looking for a reason not to impose tariffs on the EU.'' But Peisch, now a partner at the Wiley Rein law firm, wondered: 'How motivated is the U.S. to come to a deal with the EU?'' Trump, after all, has longstanding grievances and complaints about EU trade practices. One target of his ire is the value-added tax, similar to U.S. state sales taxes. Trump and his advisers consider VATs unfair protectionism because they are levied on U.S. products. But VATs are set at a national level, not by the EU, and apply to domestic and imported products alike, so they have not traditionally been considered a trade barrier. There is little chance governments will overhaul their tax systems to appease Trump. Likewise, the Europeans are likely to balk at U.S. demands to scrap food and safety regulations that Washington views as trade barriers. These include bans on hormone-raised beef, chlorinated chicken and genetically modified foods. 'When you start talking about chickens or GMOs or automobile safety standards, you're talking about the ways countries choose to regulate their economies,' Peisch said. 'We think that's protectionist. They think it's keeping their citizens healthy ... It's been a sore point for 60 years.''
Yahoo
4 hours ago
- Business
- Yahoo
Trump says deal with Xi 'extremely hard' as steel tariffs double
Donald Trump said on Wednesday that it was "extremely hard" to reach a deal with Chinese leader Xi Jinping, but the EU touted progress in its own trade talks with Washington even though the US president doubled global metal tariffs. Trump's latest trade moves came as ministers from Organisation for Economic Cooperation and Development (OECD) countries gathered in Paris to discuss the outlook for the world economy in light of a US hardball approach that has rattled world markets. Trump's sweeping tariffs on allies and adversaries have strained ties with trading partners and sparked a flurry of negotiations to avoid the duties. The White House has suggested the president will speak to Xi this week, raising hopes they can soothe tensions and speed up a trade deal between the world's two biggest economies. However, early on Wednesday, Trump appeared to dampen hopes for a quick deal. "I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!" he posted on his Truth Social platform. Asked about the remarks during a regular press briefing, Chinese foreign ministry spokesman Lin Jian said: "The Chinese side's principles and stance on developing Sino-US relations are consistent." China was the main target of Trump's April tariff blitz, hit with levies of 145 percent on its goods and triggering tit-for-tat tariffs of 125 percent on US imports. Both sides agreed to temporarily de-escalate in May, after Trump delayed most sweeping measures on other countries until July 9. His latest remarks came hours after he increased his tariffs on aluminum and steel from 25 percent to 50 percent, raising temperatures with various partners while exempting Britain from the higher levy. EU trade commissioner Maros Sefcovic said after talks with US Trade Representative Jamieson Greer on the sidelines of the OECD meeting in Paris that raising the metal tariffs "doesn't help the negotiations". The two sides were nonetheless "making progress" in their negotiations, Sefcovic said at a news conference. Goods from the 27-nation bloc will be hit with 50-percent tariffs on July 9 unless it reaches a deal with Washington. The EU has vowed to retaliate. "We did very much focus on these negotiations, and I still believe in them," Sefcovic said, adding that he was optimistic that a "positive result" could be reached. - Steel tariffs - The US-EU meeting took place a day after the OECD cut its forecast for global economic growth, blaming Trump's tariff blitz for the downgrade. "We need to come up with negotiated solutions as quickly as possible, because time is running out," German economy minister Katherina Reiche warned. French trade minister Laurent Saint-Martin said: "We have to keep our cool and always show that the introduction of these tariffs is in no one's interest." After talks between UK Trade Secretary Jonathan Reynolds and Greer on Tuesday, London said that imports from the UK would remain at 25 percent for now. Both sides needed to work out duties and quotas in line with the terms of a recently signed trade pact. "We're pleased that as a result of our agreement with the US, UK steel will not be subject to these additional tariffs," a British government spokesperson said. - White House wants offers - The Group of Seven advanced economies -- Britain, Canada, France, Germany, Italy, Japan and the United States -- was due to hold separate trade talks on Wednesday. Mexico will request an exemption from the higher tariff, Economy Minister Marcelo Ebrard said, arguing that it was unfair because the United States exports more steel to its southern neighbour than it imports. "It makes no sense to put a tariff on a product in which you have a surplus," Ebrard said. Mexico is highly vulnerable to Trump's trade wars because 80 percent of its exports go to the United States, its main partner. While some of Trump's most sweeping levies face legal challenges, they have been allowed to remain in place for now as an appeals process takes place. White House press secretary Karoline Leavitt confirmed on Tuesday that the Trump administration sent letters to governments pushing for offers by Wednesday as the July 9 deadline approached. burs-alb-lth/bc
