Latest news with #ScottB
The Herald Scotland
10-05-2025
- Business
- The Herald Scotland
Electronics company posts $36K tariff charge, says it'll up prices
The New York-based company clarified that its import and export duties charge is paid before selling any products and is due within a week of receipt, therefore significantly impacting "cash flow." "We'll have to increase the prices on some of these products, but we're not sure if people will be willing to pay the higher cost, so we may well be 'stuck' with unsellable inventory that we have already paid a large fee on," the company wrote in a May 8 blog post titled "High tariffs become 'real' with our first $36K bill." There's no way around the charge, as Adafruit said it buys its products from a vendor with IP protections, as opposed to a factory. The company said it would try to avoid a 125% 'reciprocal' tariff through a reclassification process for electronic products, but warned "there's no assurance that it will succeed." "And even if it does, it is many, many months until we could see a refund," the blog post reads. Trump suggests lowering China tariffs Trump hinted that he may lower the tariffs on goods from China from 145% to 80%, as trade between the world's largest economies has nearly halted. "80% Tariff on China seems right! Up to Scott B," Trump wrote on a Truth Social post May 9, referring to Treasury Secretary Scott Bessent. However, it is unclear whether the number was a final offer or up for negotiation with Chinese officials, who have condemned the tariffs, calling them "illegal and unreasonable." "CHINA SHOULD OPEN UP ITS MARKET TO USA -- WOULD BE SO GOOD FOR THEM!!! CLOSED MARKETS DON'T WORK ANYMORE!!!" the president wrote in another Truth Social post. Last month, Trump implemented sweeping 10% tariffs on imports from all countries, except China, and paused them for 90 days on April 9. On May 9, Trump announced that he finalized a trade agreement with the United Kingdom that he called "very big" and "maxed out." Under the deal, the U.S. will lower its automobile tariffs from 25% to 10% on U.K. vehicles and its steel tariffs from 25% to zero. Contributing: Bart Jansen and Zac Anderson, USA TODAY
Yahoo
09-05-2025
- Business
- Yahoo
Trump signals he's willing to lower China tariffs
President Trump on Friday signaled he's willing to dramatically lower U.S. tariffs on Chinese imports, underscoring how the Trump administration wants to find progress in a trade war stepped by the new president's 'Liberation Day' announcement. The tariffs have bit into Wall Street and raised fears the U.S. could enter a recession. They have also hit Trump hard when it comes to his approval ratings. Trump on Friday said an 80 percent tariff on China seemed like the right number, which would dramatically drop the import tax on Beijing's goods from 145 percent. '80% Tariff on China seems right! Up to Scott B,' Trump wrote in a post on Truth Social, giving a nod to Treasury Department Secretary Scott Bessent. The U.S. and China are set to hold trade talks with Chinese officials in Switzerland this weekend, with Bessent leading the charge. Trump announced reconciliation tariffs on goods from around the world in April, only to pause most of them as stock markets went into a freefall. He did impose a 10 percent tariff on most countries. But Trump imposed much greater duties on China, which has been the target of his trade ire. Beijing has imposed higher tariffs in response on U.S. goods and has seemed to be in no hurry to negotiate a deal with the U.S., despite the harm the tariffs could cause its own economy. Trump's approval rating for handling the economy has fallen well under 50 percent in most polls, aggravating Republicans even though there is more than a year to go before the midterm elections. The administration has sought to turn the narrative around, and announced a trade framework on Thursday with the United Kingdom. But Trump has also pleaded for patience, while saying American children may only get two dolls rather than 20 for Christmas this year of goods are too expensive. The looming talks between the U.S. and China have been welcomed by markets. Germany's DAX gained 0.7 percent, Paris's CAC 40 went up by 0.8 percent and the UK's FTSE 100 added about 0.4 percent, according to The Associated Press. The futures for the S&P 500 and Dow Jones Industrial Average also rose, the AP reported. 'CHINA SHOULD OPEN UP ITS MARKET TO USA — WOULD BE SO GOOD FOR THEM!!! CLOSED MARKETS DON'T WORK ANYMORE!!!' the president wrote in a separate Truth Social post Friday. Trump has in recent days suggested duties on Chinese goods would be lowered. 'Right now, you can't get any higher. It's at 145 percent, so we know it's coming down. I think we're going to have a very good relationship,' Trump told reporters Thursday during a gaggle at the White House. 'I think we're going to have a good weekend with China. I think they have a lot to gain,' he added. 'I do think they have far more to gain than we do, in a sense.' On Wednesday, the president said a drop in tariffs will come with a requirement. In remarks from the Oval Office, Trump reiterated that Chinese officials would need to help 'stop fentanyl from coming in.' China is the primary source of chemicals used to produce the drug, according to the U.S. Drug Enforcement Administration. Updated 9:30 a.m. EDT Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
09-05-2025
- Business
- Yahoo
Trump tariffs live updates: Trump floats slashing China tariffs to 80% with 'many' deals 'in the hopper'
The US is considering slashing its tariffs on China's goods at trade talks this weekend, after President Trump's promised that the 145% rate was "coming down." On Friday morning, Trump posted on Truth Social: "80% Tariff on China seems right! Up to Scott B," referring to Treasury Secretary Scott Bessent. Bloomberg reported earlier that a more dramatic cut would be a first step, made in hopes of a matching tariff reduction by China. The aim is to further deescalate the mounting trade war between the two countries, which threatens severe damage to the global economy — including to US businesses and consumers. Optimism for a shift in US policy grew on Thursday as Trump announced a trade deal with the UK, the first for his administration since imposing — then pausing — sweeping "reciprocal" tariffs against all trading partners in early April. He said Friday that the US had "many trade deals in the hopper," and White House economic adviser Kevin Hassett said over 20 more deals were "close to being resolved." Trump said the "breakthrough" US-UK trade agreement would boost US export markets for agricultural products, including beef and ethanol. As top US officials, including Bessent, get set to meet with Chinese counterparts this weekend, Trump has suggested he might meet with Chinese President Xi after the initial talks. China has reportedly compiled a list of US goods exempt from its 125% tariffs, aiming to ease trade tensions without making public concessions. But Trump has previously defended the China tariffs, claiming China "deserves it" and would likely absorb the costs. Meanwhile, US negotiations with the UK's neighbors in the EU have taken a different tone, with the EU on Thursday unveiling a list of US products it will target with tariffs in the event trade negotiations fail. On the economic front, Federal Reserve Chair Jerome Powell emphasized on Wednesday that while sentiment has deteriorated, the tariff "shock hasn't hit yet" as the central bank held interest rates steady. The scale of tariff disruption on the economy will largely depend on how quickly trade deals are reached. After meeting with Canadian Prime Minister Mark Carney on Tuesday, Trump reiterated that the onus to make offers falls on other countries. "We don't have to sign deals," he said at the White House. "They have to sign deals with us." Here are the latest updates as the policy reverberates around the world. President Trump recommended lowering tariffs on China to 80% on Friday morning ahead of a meeting with top US officials and their Chinese counterparts in Switzerland this weekend. "80% Tariff on China seems right! Up to Scott B," Trump posted to Truth Social, referring to Treasury Secretary Scott Bessent, who will be at the meeting with China's vice premier He Lifeng, as the decision maker. On Thursday, reports circulated that Trump was considering slashing tariffs on China in advance of the early talks, though a White House spokesperson called that "baseless speculation." Trump himself has offered mixed messaging on whether tariffs would be brought down to deescalate the trade talks. On Wednesday, Trump said that he wouldn't lower tariffs on China to kick off the dialogue, but then on Thursday, he said of the 145% tariff rate, "We know it's coming down." But Trump's post this morning seems a direct indication that the president is willing to take the first step to make sure the trade talks go well this weekend. "CHINA SHOULD OPEN UP ITS MARKET TO USA — WOULD BE SO GOOD FOR THEM!!!" Trump also posted Friday. "CLOSED MARKETS DON'T WORK ANYMORE!!!" "We know it's coming down," President Trump said on Thursday. Now reports are emerging to back up his hint that the US will offer to slash its 145% tariff on Chinese goods at trade talks this weekend. The US team is looking at a target rate of less than 60%, sources told Bloomberg, in hopes of getting a similar offer from China for its hefty tariffs on US goods. The Trump team is also looking to get China to ease curbs on exports of rare earths — minerals key to production of leading tech. Bloomberg reports: Read more here. China's exports for April rose 8.1% in comparison to the previous year as consumers and companies tried to lock in purchases before tariffs take effect. Read more here. On Thursday, the European Commission revealed a list of over $100 billion in US products that could be hit by retaliatory measures if trade talks with the US fail. Specific tariff levels are still unknown, but the Commission did open up a public consultation that ends on June 10. After assessing responses, the Commission will formalize a product list by early July, around the time President Trump's pause on reciprocal tariffs is expected to be lifted (July 8). Reuters broke down a list of the major US imports that could be targeted: What is not included: The EU has not included lumber, copper, pharmaceuticals, and critical raw materials, as Trump is still expected to make more targeted tariff announcements in these areas. Read more here. There are still several unanswered questions about the new trade agreement between the US and Britain, such as whether the new market access to agricultural products will collide with the UK's higher food standards. Yahoo Finance's Ben Werschkul reports: Read more about what's in the deal here. US stocks jumped to session highs after President Trump and UK Prime Minister Keir Starmer announced a trade deal, with the outcome of those negotiations lifting hopes for further progress on other agreements, particularly with China. The tech-heavy Nasdaq Composite (^IXIC) rose roughly 1.8%. The S&P 500 (^GSPC) climbed around 1.4%, while the Dow Jones Industrial Average (^DJI) rose 1.4%, or over 500 points. In individual movers, Boeing (BA) stock added 4% on news of a $10 billion procurement deal for British airport engines. More details on that agreement are to come. In London, the benchmark index, the FTSE 100 (^FTSE), closed 0.3% lower ahead of the trade announcement. Earlier in the day, the Bank of England cut interest rates by a quarter-point to 4.25%. Check out our markets live blog for moreon what's moving stocks. President Trump said trade negotiations with China will be "substantive" and contrasted the UK trade negotiations with the more strained relationship with Beijing and the European Union. "We can all play games," Trump told reporters at the Oval Office. "Who made the first call? ... Doesn't matter. It only matters what happens in that group. But I will tell you that China very much wants to make a deal." Top US officials, including Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, are set to meet with Chinese counterparts this weekend in Geneva, Switzerland, for preliminary talks. The goal is deescalation, rather than progress on a specific trade deal, Bessent said. On Wednesday, Trump said that he would not make concessions to get China to the negotiating table. But when asked on Thursday if China tariffs could be lowered, Trump said they might be, depending on how trade talks go. "We're going to see," Trump said. "Right now it's at 145%. You can't get any higher than that, so we know it's coming down." More broadly, Trump suggested that more trade deals will be in the offing soon. "This is just the beginning," Trump said. "We're going to be having conferences, or, at some point, we won't have conferences, we just put out a statement that we just signed this country, that country. And after a number of these are done — nobody has enough people to do it — we're just going to put out, 'X country is going to pay this. And if they open up, they're going to do this and that.'" An infographic laying out some of the details was posted from President Trump's Truth Social account during the press conference. It touts: UK Prime Minister Keir Starmer, in his own press conference, explained that US tariffs on British steel and aluminium will be reduced to 0%. "That is a deal that will protect British businesses and save thousands of jobs in Britain," Starmer said. In addition, Starmer noted the 100,000 car quota for reduced auto tariffs could be increased in the future. That offers a reprieve to UK automakers like Rolls-Royce, Jaguar, and Land Rover. Commerce Secretary Howard Lutnick says 10% across-the-board tariffs still apply to the United Kingdom. "We open up new market access, ethanol, beef, machinery, all the agricultural products," Lutnick said. "They've agreed to open their markets, and that will add $5 billion of opportunity to American exports. In return, Lutnick said the US will scale back the 25% sectoral tariffs on foreign autos for the UK to 10%. "We did a deal with them and automobiles," Lutnick said. "He agreed they could send 100,000 cars into America and only pay a 10% tax, and that protects their car industry." Lutnick also highlighted a carve-out for Rolls-Royce engines: "They sell Rolls-Royce engines to Boeing. We've agreed to let Rolls-Royce engines and those kind of plane parts to come over tariff-free." Boeing (BA) and Rolls-Royce (RYCEY) stocks were up over 2% on the announcement. United Kingdom's Prime Minister Keir Starmer weighed in on the trade deal announcement over the phone, calling it a "fantastic, historic day." On Tuesday, the UK and India also signed a 'landmark' free trade agreement after three years of negotiations. Now, Commerce Secretary Howard Lutnick is speaking, noting the existing "balanced trade" dynamic between the US and UK. The UK is one of the few countries with which the US has a trade surplus with, meaning the US exports more goods to Britain than it imports. In 2024, the US exported $79.9 billion worth of goods to the UK, while it imported $68.1 billion worth of products, according to the US trade representative. That's important to Trump, who has used countries' trade balances with the US as markers of whether or not existing trade policies are fair. President Trump says the US-UK trade deal will boost US export markets for agricultural products including beef and ethanol. "The deal includes billions of dollars of increased market access for American exports, especially in agriculture, dramatically increasing access for American beef, ethanol and virtually all of the products produced by our great farmers." "They'll also be fast-tracking American goods through their customs process," Trump added. "So our exports go to a very, very quick form of approval, and there won't be any red tape. Things are going to move very quickly both ways." Trump noted that the final details will be written up "in the coming weeks." President Trump is set to announce a "full and comprehensive" trade deal with the United Kingdom on Thursday. It will be the first deal of its kind since Trump unveiled sweeping tariffs on April 2. "The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come," Trump posted on Truth Social on Thursday. "Because of our long time history and allegiance together, it is a great honor to have the United Kingdom as our FIRST announcement. Many other deals, which are in serious stages of negotiation, to follow!" "The Golden Age of America is coming!" Trump added in a separate post. You can watch a livestream of the president's announcement below: As President Trump prepares to announce a "major" trade deal with the United Kingdom, US talks with the UK's neighbors are taking a different tone. The European Union on Thursday unveiled counter-tariffs on US goods in the event trade talks fail to lead to a satisfactory deal. The tariffs would hit US wine and bourbon, fish, planes, and cars (and parts). From Reuters: This posture definitely feels different than the exuberance — which is pervading through markets today — on the UK deal. But at least some of it is because of the "consultation" process, as countries eye July as the new "X-date" for Trump's "reciprocal" tariffs to potentially come back in force. That said, all indications are that the US and EU have made slow progress in talks so far. Yahoo Finance Senior Autos Reporter Pras Subramanian breaks down how luxury automaker Ferrari plans to handle additional costs from President Trump's 25% tariff on foreign auto imports: Read more here. President Trump said Thursday that the US-UK agreement would be "comprehensive" and just the first in a series of many deals to be signed. "The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come," he wrote in a post on Truth Social. "Because of our long time history and allegiance together, it is a great honor to have the United Kingdom as our FIRST announcement. Many other deals, which are in serious stages of negotiation, to follow!" he added. But reports say some experts are skeptical that the deal will be as exciting and extensive as Trump suggests — and is unlikely to be a wide-ranging free trade agreement as previously sought by the UK, per the Financial Times. "Instead, this had been pitched by UK officials as a narrow economic pact to avoid tariffs and work together on AI and critical tech," Politico reported. Toyota has warned that its full-year operating profits will fall 21% as it grapples with President Trump's historic tariffs, which will result in a $1.3 billion to income in just two months. The Japanese automaker — the world's biggest, by vehicles sold — joins other industry leaders in raising a red flag about the likely cost of Trump's tariffs, which risk upending a complex global supply chain. Bloomberg reports: Read more here. President Donald Trump has announced an upcoming press conference at 10:00 a.m. Thursday to release details of a trade deal with a "BIG COUNTRY" believed to be the United Kingdom. Bloomberg reports: Read more here. On Wednesday, Treasury Secretary Scott Bessent said that the Trump administration is considering a tariff reprieve on some children's items from China, such as car seats, baby strollers, and cribs. Currently, those items are taxed up to 145% when shipped from China to the US. Reuters reports: Read more here. Fed Chair Powell stressed that waiting and not preemptively responding to tariffs is "the right thing to do." "We really don't see in the data yet the economic effects [of tariffs]," Powell said at a press conference, noting that the central bank will continue to be data dependent and look at the hard economic data as well as measures of sentiment. "People, they're worried now about inflation, they're worried about a shock from the tariffs, but that shock hasn't hit yet." Powell said the outcomes of President Trump's economic policies are still highly uncertain, "so it's not at all clear what the appropriate response for monetary policy is at this time." President Trump recommended lowering tariffs on China to 80% on Friday morning ahead of a meeting with top US officials and their Chinese counterparts in Switzerland this weekend. "80% Tariff on China seems right! Up to Scott B," Trump posted to Truth Social, referring to Treasury Secretary Scott Bessent, who will be at the meeting with China's vice premier He Lifeng, as the decision maker. On Thursday, reports circulated that Trump was considering slashing tariffs on China in advance of the early talks, though a White House spokesperson called that "baseless speculation." Trump himself has offered mixed messaging on whether tariffs would be brought down to deescalate the trade talks. On Wednesday, Trump said that he wouldn't lower tariffs on China to kick off the dialogue, but then on Thursday, he said of the 145% tariff rate, "We know it's coming down." But Trump's post this morning seems a direct indication that the president is willing to take the first step to make sure the trade talks go well this weekend. "CHINA SHOULD OPEN UP ITS MARKET TO USA — WOULD BE SO GOOD FOR THEM!!!" Trump also posted Friday. "CLOSED MARKETS DON'T WORK ANYMORE!!!" "We know it's coming down," President Trump said on Thursday. Now reports are emerging to back up his hint that the US will offer to slash its 145% tariff on Chinese goods at trade talks this weekend. The US team is looking at a target rate of less than 60%, sources told Bloomberg, in hopes of getting a similar offer from China for its hefty tariffs on US goods. The Trump team is also looking to get China to ease curbs on exports of rare earths — minerals key to production of leading tech. Bloomberg reports: Read more here. China's exports for April rose 8.1% in comparison to the previous year as consumers and companies tried to lock in purchases before tariffs take effect. Read more here. On Thursday, the European Commission revealed a list of over $100 billion in US products that could be hit by retaliatory measures if trade talks with the US fail. Specific tariff levels are still unknown, but the Commission did open up a public consultation that ends on June 10. After assessing responses, the Commission will formalize a product list by early July, around the time President Trump's pause on reciprocal tariffs is expected to be lifted (July 8). Reuters broke down a list of the major US imports that could be targeted: What is not included: The EU has not included lumber, copper, pharmaceuticals, and critical raw materials, as Trump is still expected to make more targeted tariff announcements in these areas. Read more here. There are still several unanswered questions about the new trade agreement between the US and Britain, such as whether the new market access to agricultural products will collide with the UK's higher food standards. Yahoo Finance's Ben Werschkul reports: Read more about what's in the deal here. US stocks jumped to session highs after President Trump and UK Prime Minister Keir Starmer announced a trade deal, with the outcome of those negotiations lifting hopes for further progress on other agreements, particularly with China. The tech-heavy Nasdaq Composite (^IXIC) rose roughly 1.8%. The S&P 500 (^GSPC) climbed around 1.4%, while the Dow Jones Industrial Average (^DJI) rose 1.4%, or over 500 points. In individual movers, Boeing (BA) stock added 4% on news of a $10 billion procurement deal for British airport engines. More details on that agreement are to come. In London, the benchmark index, the FTSE 100 (^FTSE), closed 0.3% lower ahead of the trade announcement. Earlier in the day, the Bank of England cut interest rates by a quarter-point to 4.25%. Check out our markets live blog for moreon what's moving stocks. President Trump said trade negotiations with China will be "substantive" and contrasted the UK trade negotiations with the more strained relationship with Beijing and the European Union. "We can all play games," Trump told reporters at the Oval Office. "Who made the first call? ... Doesn't matter. It only matters what happens in that group. But I will tell you that China very much wants to make a deal." Top US officials, including Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, are set to meet with Chinese counterparts this weekend in Geneva, Switzerland, for preliminary talks. The goal is deescalation, rather than progress on a specific trade deal, Bessent said. On Wednesday, Trump said that he would not make concessions to get China to the negotiating table. But when asked on Thursday if China tariffs could be lowered, Trump said they might be, depending on how trade talks go. "We're going to see," Trump said. "Right now it's at 145%. You can't get any higher than that, so we know it's coming down." More broadly, Trump suggested that more trade deals will be in the offing soon. "This is just the beginning," Trump said. "We're going to be having conferences, or, at some point, we won't have conferences, we just put out a statement that we just signed this country, that country. And after a number of these are done — nobody has enough people to do it — we're just going to put out, 'X country is going to pay this. And if they open up, they're going to do this and that.'" An infographic laying out some of the details was posted from President Trump's Truth Social account during the press conference. It touts: UK Prime Minister Keir Starmer, in his own press conference, explained that US tariffs on British steel and aluminium will be reduced to 0%. "That is a deal that will protect British businesses and save thousands of jobs in Britain," Starmer said. In addition, Starmer noted the 100,000 car quota for reduced auto tariffs could be increased in the future. That offers a reprieve to UK automakers like Rolls-Royce, Jaguar, and Land Rover. Commerce Secretary Howard Lutnick says 10% across-the-board tariffs still apply to the United Kingdom. "We open up new market access, ethanol, beef, machinery, all the agricultural products," Lutnick said. "They've agreed to open their markets, and that will add $5 billion of opportunity to American exports. In return, Lutnick said the US will scale back the 25% sectoral tariffs on foreign autos for the UK to 10%. "We did a deal with them and automobiles," Lutnick said. "He agreed they could send 100,000 cars into America and only pay a 10% tax, and that protects their car industry." Lutnick also highlighted a carve-out for Rolls-Royce engines: "They sell Rolls-Royce engines to Boeing. We've agreed to let Rolls-Royce engines and those kind of plane parts to come over tariff-free." Boeing (BA) and Rolls-Royce (RYCEY) stocks were up over 2% on the announcement. United Kingdom's Prime Minister Keir Starmer weighed in on the trade deal announcement over the phone, calling it a "fantastic, historic day." On Tuesday, the UK and India also signed a 'landmark' free trade agreement after three years of negotiations. Now, Commerce Secretary Howard Lutnick is speaking, noting the existing "balanced trade" dynamic between the US and UK. The UK is one of the few countries with which the US has a trade surplus with, meaning the US exports more goods to Britain than it imports. In 2024, the US exported $79.9 billion worth of goods to the UK, while it imported $68.1 billion worth of products, according to the US trade representative. That's important to Trump, who has used countries' trade balances with the US as markers of whether or not existing trade policies are fair. President Trump says the US-UK trade deal will boost US export markets for agricultural products including beef and ethanol. "The deal includes billions of dollars of increased market access for American exports, especially in agriculture, dramatically increasing access for American beef, ethanol and virtually all of the products produced by our great farmers." "They'll also be fast-tracking American goods through their customs process," Trump added. "So our exports go to a very, very quick form of approval, and there won't be any red tape. Things are going to move very quickly both ways." Trump noted that the final details will be written up "in the coming weeks." President Trump is set to announce a "full and comprehensive" trade deal with the United Kingdom on Thursday. It will be the first deal of its kind since Trump unveiled sweeping tariffs on April 2. "The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come," Trump posted on Truth Social on Thursday. "Because of our long time history and allegiance together, it is a great honor to have the United Kingdom as our FIRST announcement. Many other deals, which are in serious stages of negotiation, to follow!" "The Golden Age of America is coming!" Trump added in a separate post. You can watch a livestream of the president's announcement below: As President Trump prepares to announce a "major" trade deal with the United Kingdom, US talks with the UK's neighbors are taking a different tone. The European Union on Thursday unveiled counter-tariffs on US goods in the event trade talks fail to lead to a satisfactory deal. The tariffs would hit US wine and bourbon, fish, planes, and cars (and parts). From Reuters: This posture definitely feels different than the exuberance — which is pervading through markets today — on the UK deal. But at least some of it is because of the "consultation" process, as countries eye July as the new "X-date" for Trump's "reciprocal" tariffs to potentially come back in force. That said, all indications are that the US and EU have made slow progress in talks so far. Yahoo Finance Senior Autos Reporter Pras Subramanian breaks down how luxury automaker Ferrari plans to handle additional costs from President Trump's 25% tariff on foreign auto imports: Read more here. President Trump said Thursday that the US-UK agreement would be "comprehensive" and just the first in a series of many deals to be signed. "The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come," he wrote in a post on Truth Social. "Because of our long time history and allegiance together, it is a great honor to have the United Kingdom as our FIRST announcement. Many other deals, which are in serious stages of negotiation, to follow!" he added. But reports say some experts are skeptical that the deal will be as exciting and extensive as Trump suggests — and is unlikely to be a wide-ranging free trade agreement as previously sought by the UK, per the Financial Times. "Instead, this had been pitched by UK officials as a narrow economic pact to avoid tariffs and work together on AI and critical tech," Politico reported. Toyota has warned that its full-year operating profits will fall 21% as it grapples with President Trump's historic tariffs, which will result in a $1.3 billion to income in just two months. The Japanese automaker — the world's biggest, by vehicles sold — joins other industry leaders in raising a red flag about the likely cost of Trump's tariffs, which risk upending a complex global supply chain. Bloomberg reports: Read more here. President Donald Trump has announced an upcoming press conference at 10:00 a.m. Thursday to release details of a trade deal with a "BIG COUNTRY" believed to be the United Kingdom. Bloomberg reports: Read more here. On Wednesday, Treasury Secretary Scott Bessent said that the Trump administration is considering a tariff reprieve on some children's items from China, such as car seats, baby strollers, and cribs. Currently, those items are taxed up to 145% when shipped from China to the US. Reuters reports: Read more here. Fed Chair Powell stressed that waiting and not preemptively responding to tariffs is "the right thing to do." "We really don't see in the data yet the economic effects [of tariffs]," Powell said at a press conference, noting that the central bank will continue to be data dependent and look at the hard economic data as well as measures of sentiment. "People, they're worried now about inflation, they're worried about a shock from the tariffs, but that shock hasn't hit yet." Powell said the outcomes of President Trump's economic policies are still highly uncertain, "so it's not at all clear what the appropriate response for monetary policy is at this time." Sign in to access your portfolio
CNBC
09-05-2025
- Business
- CNBC
First Chinese goods hit with 145%-plus tariffs arriving at U.S. ports
Upwards of 12,000 shipping containers that are subject to the 145%-plus tariffs levied by President Trump are on the first flotilla of Chinese freight vessels arriving at the Ports of Los Angeles and Long Beach. A total of seven vessels which left China after the announcement of the 145%-plus tariffs are currently at the nation's two busiest ports for container traffic from Asia, according to vessel arrivals tracked and aggregated by MarineTraffic. An additional five freight ships are expected to arrive in the coming days. Amazon, Home Depot, Ikea, Ralph Lauren and Tractor Supply are among the companies with Chinese goods in these containers, spanning a wide range of consumer items. In addition to housewares, apparel, and furniture, Amazon imported a wide variety of products on behalf of sellers, including refrigerators, deep fryers, mousepads, bookshelves and living room sofas. Tractor Supply shipments include portable drum fans, garden tools, and men's work boots. Lamps and ceiling fans have been processed through Customs for Home Depot. A Tractor Supply spokesperson referred CNBC to its recent earnings call on April 24 when the company pointed to "notable uncertainty" as a results of the tariffs. "Tractor Supply is actively working with its vendor and supply chain partners to navigate the impact of recently announced tariffs, while also monitoring the broader macroeconomic factors impacting its customers," the spokesperson said. Ikea furniture; Speedo swim goggles and swim caps; Procter & Gamble tissue holders; Samsung printed circuit boards, microwaves and refrigerator parts; Ralph Lauren sweaters, cashmere, and blazers; Dr. Martens Airwair footwear; Samsung microwaves and refrigerator parts; LG washing machines, air conditioners, ranges, refrigerators and dishwashers; Bauer Hockey sporting goods; Lenovo computer parts; auto parts for Valeo North America; and headsets and computer keyboards for Polaris, were all among the Chinese container goods. For many of the companies, products categories deemed as essential to replenish are brought in despite concerns about consumer demand and an economic slowdown. Amazon said in a statement sent by email that it is working with its "broad, varied range of valued selling partners in our store to support them in adapting to the evolving environment while maintaining broad selection and low prices for customers." Home Depot is in a quiet period ahead of announcing its quarterly results, and referred CNBC to an existing statement citing "a fluid environment." "We, together with our vendors, are monitoring developments and will work closely to manage with the goal of being our customers' advocate for value," a Home Depot spokesperson said. Trump suggested on Friday ahead of key trade talks that he was willing to lower tariffs on China to 80%, a rate many businesses would likely still consider to be extremely high. "80% Tariff on China seems right! Up to Scott B," Trump said in a Truth Social post, referring to a planned meeting between Treasury Secretary Scott Bessent and counterparts from China in Switzerland this weekend. Brian Bourke, global chief commercial officer at SEKO Logistics, tells CNBC clients continue to struggle in understanding how all of the various tariff provisions are stacked, or in some cases cancel each other out. "This confusion has led them to continually alter and update their scenario planning, freezing any other decisions for the business they would be making," said Bourke. "Many of our clients priced and sold their products or projects prior to the tariff amounts being announced, and with the speed and severity as well as the quantity of new tariff provisions being announced, they are not able to change the pricing on items that have already sold and are arriving in May and June, or beyond." The number of freight vessels and shipping containers headed to the U.S. from China has plummeted since the tariffs announcement in early April. Across the Asia-North America West Coast and Asia-North America East Coast trades, there was a total of 90 blank sailings across April and May, according to Sea-Intelligence. The Ocean Alliance (a freight consortium including Chinese-owned and operated COSCO and OOCL, Taiwan-based Evergreen, and French-owned CMA) accounted for 48 of those canceled sailings. Bookings are down from 30% to 50%, according to logistics providers and ocean carriers. In addition to decreased vessel sailings as a result of paused manufacturing orders from shippers and fewer container to fill, ocean carriers are using smaller vessels to move trade. MSC, the largest ocean carrier in the world, along with the Gemini Alliance (comprised of Maersk and Hapag Lloyd), are among the freight companies using smaller vessels between the Asia-North America West Coast routes. MSC has reduced its container capacity by 28% year over year, according to Sea-Intelligence data analyzing the impact of canceled sailings and vessel changes, while Ocean Alliance container capacity is down by 26% year over year. Bourke said once shippers have finished bringing in what they consider essential stocks, they are in various degrees of "wait-and-see" mode with their supply chains, and continuing to cancel orders from China, which has led to widespread fears about product shortages and the potential for empty shelves. "What happens when safety stocks that had been built up disappear?" Bourke said.
The Hill
09-05-2025
- Business
- The Hill
Trump proposes 80 percent tariff on China
President Trump on Friday signaled the U.S. could lessen the tariff pressure on China — dropping the import tax rate from 145 percent to 80 percent. '80% Tariff on China seems right! Up to Scott B,' Trump wrote in a post on Truth Social, giving a nod to Treasury Secretary Scott Bessent. The proposed new tariff rate leans into the president's earlier suggestion that trade negotiations were possible with Beijing, the world's second largest economy. Bessent is slated to hold trade talks with Chinese officials in Switzerland this week and said as of Tuesday that he has not spoken with counterparts. The looming talks have triggered a market response, with shares increasing across the globe — at a time when the Trump administration is working to reassure investors and U.S. consumers that the economy will stabilize. Germany's DAX gained 0.7 percent, Paris's CAC 40 went up by 0.8 percent and the UK's FTSE 100 added about 0.4 percent, according to The Associated Press. The future for the S&P 500 and Dow Jones Industrial Average also rose, per the AP. 'CHINA SHOULD OPEN UP ITS MARKET TO USA — WOULD BE SO GOOD FOR THEM!!! CLOSED MARKETS DON'T WORK ANYMORE!!!' the president wrote in a separate Truth Social post on Friday. The messaging comes after Trump imposed a 10 percent baseline tariff on most foreign imports last month. He also hit nearly all global trading partners with reciprocal tariffs, which are currently on a 90-day pause pending trade negotiations. China was notably left out of the deal, and a back-and-forth led the U.S. to raise tariffs to 125 percent, coupled with an existing 20 percent. In retaliation, Chinese commerce officials matched the 125 percent import tax on U.S. goods coming into the country. Trump has in recent days suggested that duties on Chinese goods would be lowered. 'Right now you can't get any higher. It's at 145 percent so we know it's coming down. I think we're going to have a very good relationship,' Trump told reporters Thursday during a gaggle, according to Bloomberg. 'I think we're going to have a good weekend with China. I think they have a lot to gain,' he added, per Reuters. 'I do think they have far more to gain than we do, in a sense.'
