Latest news with #StateoftheInternationalFinancialSystem
Barnama
19-05-2025
- Business
- Barnama
US Eyes Region-based Tariffs For Many Nations As Deadline Nears
FILE PHOTO: U.S. Treasury Secretary Scott Bessent testifies before a House Financial Services Committee hearing entitled "The Annual Testimony of the Secretary of the Treasury on the State of the International Financial System," on Capitol Hill in Washington, D.C., U.S., May 7, 2025. REUTERS/Nathan Howard/File Photo WASHINGTON, May 19 (Bernama-Kyodo) -- The United States (US) is likely to introduce region-based tariffs instead of coming up with individual duty rates for many countries, Treasury Secretary Scott Bessent said on Sunday, as time runs out to negotiate trade deals across the world. According to Kyodo News Agency, Bessent said the administration of President Donald Trump is now aiming to strike deals with select key trading partners on its sweeping so-called reciprocal tariffs imposed in April. While appearing on a CNN programme, the secretary said he expects to "do a lot of regional deals." bootstrap slideshow "This is the rate for Central America, this is the rate for this part of Africa, but what we are focused on right now are the 18 important trading relationships," Bessent said, when asked about how many trade agreements the administration may be able to announce in the coming weeks. Bessent's remarks came after Trump said on Friday that his administration will send letters to numerous countries over the next two to three weeks informing them how much they need to pay to do business in the United States. Under the so-called reciprocal policy, Trump unleashed a baseline tariff of 10 per cent for almost all nations in the world and additional, higher country-specific duties for about 60 major trading partners that have trade surpluses with the United States. Trump paused the country-specific tariffs for 90 days until early July to allow for negotiations, but his officials have struggled to make progress on so many deals in the time available. Trump said Friday there are about 150 countries that want to negotiate deals with the United States, but he did not offer details, including which countries may receive such letters, at the time. Countries such as India, Japan and South Korea are believed to be included in the 18 important trading partners as they have had talks with the Trump administration since the pause was set hours after its steep tariffs took effect on April 9.
Straits Times
11-05-2025
- Business
- Straits Times
US' Bessent hails 'substantial progress' in trade talks with China
FILE PHOTO: U.S. Treasury Secretary Scott Bessent testifies before a House Financial Services Committee hearing entitled \"The Annual Testimony of the Secretary of the Treasury on the State of the International Financial System,\" on Capitol Hill in Washington, D.C., U.S., May 7, 2025. REUTERS/Nathan Howard/File Photo GENEVA - U.S. Treasury Secretary Scott Bessent said on Sunday that there had been "substantial progress" in talks between his team and that of Chinese Vice Premier He Lifeng in Geneva on defusing a trade war between the world's two largest economies. Bessent said he would give more details on Monday, while U.S. Trade Representative Jamieson Greer, also at the talks, said the differences between the two sides were not as great as previously thought. "I'm happy to report that we've made substantial progress between the United States and China in the very important trade talks," Bessent told reporters. Bessent said he had informed President Donald Trump of the progress of the talks, and there would be a complete briefing on details on Monday. The talks had continued into a second day on Sunday as both sides discussed how to de-escalate a trade war that threatens to inflict major damage on the world economy. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
CNBC
07-05-2025
- Business
- CNBC
Dollar rises versus yen, Swiss franc, Fed and trade talks in focus
The dollar began Monday on a weak note after significant losses last week due to a potentially weakening U.S. labor market, while concerns over a global trade war led investors to safe havens, lifting the yen and the Swiss franc. The U.S. dollar rose against the safe-haven yen and Swiss franc while steadying versus the euro as investors looked towards the impending outcome of the Federal Reserve policy meeting later in the session and tariff negotiations. U.S. Treasury prices rose on Tuesday, as a well-received auction of the benchmark 10-year note suggested demand for Treasuries remained intact after a trade war shook investor confidence in U.S. assets. The greenback dropped sharply on the U.S. tariff announcement early last month before jumping on April 22 as U.S. Treasury Secretary Scott Bessent suggested there would be a de-escalation in U.S.-China trade tensions. Bessent and chief trade negotiator Jamieson Greer will meet China's economic tsar, He Lifeng, in Switzerland this weekend for talks that could be the first step toward resolving a trade war that has disrupted the global economy. The Fed is expected to leave interest rates unchanged on Wednesday, with investors focusing on any clues about the rate outlook as U.S. tariffs cast uncertainty over the economy. The greenback was up 0.54% versus the yen at 143.18, breaking a three-day falling streak, with Japanese markets reopening after a two-day holiday. Analysts flagged Treasury Secretary Scott Bessent's testimony to the House on the 'State of the International Financial System' later in the day. "He'll argue that U.S. bond markets are functioning in an orderly manner and probably repeat the mantra that Washington retains a strong dollar policy," said Chris Turner, head of forex strategy at ING. "It will be interesting, however, if he's quizzed on whether currency deals are part of the trade negotiations currently underway with 17 other trading partners." The greenback was up 0.3% against the Swiss franc at 0.8248. On Monday, it hit its lowest level since January 2015 at 0.8032. The Swiss National Bank is ready to intervene in the foreign currency markets and cut rates even below zero to prevent inflation falling below its price stability target, Chairman Martin Schlegel said on Tuesday. The greenback got a "micro bounce" on the impending trade talks, but broad pessimism about the U.S. economy and the dollar remain intact, according to IG analyst Tony Sycamore. The dollar index -- a measure of the value of the greenback relative to a basket of foreign currencies -- slipped 0.05%, extending losses into a fourth day. The euro was down 0.05% at $1.1363. Earlier this week, a record rally in the Taiwan dollar spread to other currencies in Asia, such as the Singapore dollar and the South Korean won. The Taiwan dollar has surged against the U.S. currency since U.S. President Donald Trump's April 2 announcement of sweeping tariffs on trade partners. The won reached a six-month high at Wednesday's opening, but subsequently fell 1.5%. The yuan weakened as China announced a long-awaited rate cut. Currency markets seemed a bit calmer on Wednesday following the stunning two-day leap for Taiwan's currency. "We agree with the view expressed in the market that the extremely volatile markets seen in Taiwan forex over the last few days are a warning shot," George Saravelos, global head of FX research at Deutsche Bank, wrote. "Self-fulfilling moves could happen to other currencies where the institutional investor industry is left with a large overhang of un-hedged U.S. dollar asset positions. The yen immediately comes to mind."
