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Politico
30-06-2025
- Business
- Politico
Canada cans digital tax after Trump threats
QUICK FIX — Canada's decision to withdraw its digital services tax over President Donald Trump's trade threats will likely embolden the president's strategy of using tariffs to extract broader concessions from countries. — The United States and India are eyeing later this fall for a comprehensive agreement on trade as Washington's demands weigh on negotiations. — The Trump administration secured an exemption from a global minimum tax plan, while the U.S. dropped its threatened so-called revenge tax. It's Monday, June 30. Welcome to Morning Trade! Got news tips? Suggestions? Want to grab a coffee? Hit us up at: ahawkins@ ddesrochers@ and dpalmer@ Follow us on X: @_AriHawkins, @drdesrochers and @tradereporter. Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. Driving the day CANADA CTRL+Z: In a bid to revive trade negotiations with the Trump administration, Canada said late Sunday it will drop its digital services tax on major technology companies like Apple, Amazon and Google — a levy that was set to begin raking in billions from U.S. firms. 'Canada is engaged in complex negotiations on a new economic and security partnership with the U.S.,' Canadian Finance Minister François-Philippe Champagne said in an X post. 'Rescinding the DST will allow the negotiations to make vital progress and reinforce our work to create jobs and build prosperity for all Canadians.' Canadian Prime Minister Mark Carney and President Donald Trump will resume trade discussions with the goal of reaching a deal by July 21, according to a statement from Canada's finance ministry. The reversal comes after Trump on Friday declared he would be 'terminating' all trade discussions with Canada, effective immediately, because of the 3 percent tax on certain digital revenues earned in the country, and that he would announce new tariffs on Canada within the next seven days. (Canadian Prime Minister Mark Carney and Trump had previously agreed to secure a deal by July 16.) The president reiterated earlier Sunday that trade talks with Canada would not return 'until such time as they drop certain taxes,' in an interview on Fox News' Sunday Morning Futures With Maria Bartiromo. Why it matters: Canada's decision to drop its digital services tax will likely embolden the Trump administration's broader approach to trade negotiations, which is to use tariffs not only as a tool to boost domestic manufacturing and revenue, but as a lever to extract concessions on a host of unrelated issues, particularly tech regulations. It comes after the administration asked South Korea to shelve so-called antitrust proposals and as it seeks to revise digital services measures in the United Kingdom and the European Union. Industry view: The move is a relief for major technology companies that are increasingly getting caught up in Trump's trade war, and removes a long-running source of strain from the Trump administration. Prior to the rescindment, the first payment was scheduled to be today. The tax charges retroactively from January 2022. In addition to those payments, U.S. companies would have faced up to $2.3 billion worth of annual losses, per the Computer & Communications Industry Association Research Center. 'We welcome the Canadian government's decision to withdraw this ill-advised measure, and we hope officials will provide guidance for businesses as the rescission takes place,' Megan Funkhouser, a senior director at the Information Technology Industry Council, which counts Apple, IBM, Microsoft and Nvidia as members, told Morning Trade. INSIDE THE ADMINISTRATION DELHI-CATE TALKS: Meanwhile, Washington and New Delhi continue to make progress toward the first phase of a trade deal, with the expectation that a more comprehensive agreement could come later in the fall, writes POLITICO's Dan and Megan Messerly. At an event at the White House on Friday, Trump teased that, 'I think we're going to reach a deal where we have the right to go in and trade' in India. He added, 'We're looking to get a full trade barrier dropping, which is unthinkable, and I'm not sure that that's going to happen, but as of this moment, we've agreed to that.' Key point: The White House has projected a rosy image of talks with the country, after reaching agreements on some agricultural issues, energy purchases and non-tariff barriers. But officially inking a deal has proven difficult, people close to the negotiations say, because of all the things the Trump administration is asking India to do to lower its trade barriers, while only offering to give up some of its newly imposed tariffs in return. 'Nothing riles Indians more than the idea that their government was bullied by a foreign leader,' said Syed Akbaruddin, India's former ambassador to the United Nations. 'A trade bargain that could have been a win-win deal now risks being portrayed by those who oppose it as a tribute, not a partnership.' By the numbers: India has some of the highest tariffs of any major economy in the world, with an average rate of around 17 percent. Its government, in particular, has long sought to protect the country's millions of subsistence farmers, who have outsized political clout. Reminder: India was one of the first countries to begin trade negotiations with the U.S., launching talks in February. While visiting India in late April, Vice President JD Vance announced the two sides had 'officially finalized the Terms of Reference' for the negotiations. REGULATORY REVIEW TIT FOR TAX: G7 countries have agreed to exempt the United States from applying a 15 percent minimum corporate tax rate, the Canadian G7 presidency said in a statement Saturday night. Deal reached: The industrialized economies appeared to cave in to shield their own firms from Washington's threat of retaliation. The deal comes after the U.S. agreed to drop a so-called revenge tax against other countries that impose allegedly 'discriminatory' levies on U.S. firms, known as Section 899 from a sweeping domestic policy megabill. Reminder: Lawmakers came under pressure from foreign officials and U.S. manufacturers to ease the mooted tax amid fears that it would have dented foreign investment in the country. 'INEFFECTIVE INSTRUMENT': The Bank for International Settlements issued a sharp rebuke of the U.S. administration's trade policies, urging it to confront its stubborn fiscal deficit instead of resorting to import duties to correct global trade imbalances. 'Even if there were merits to cutting trade deficits and boosting domestic production at the expense of imports, broad-based tariffs are an ineffective instrument for doing so,' the BIS, often dubbed the central bank for central banks, said in its annual economic review. At the same time, Trump's protectionist policies have taken a toll on the global economy's growth prospects. In its latest outlook, the International Monetary Fund warned that trade tensions could lower economic growth to 2.8 percent this year, from 3.3 percent last year. POLITICO Europe's Carlo Boffa has more here. TRADE OVERNIGHT — New Senate megabill text eliminates tariff exemption for low-value packages, per POLITICO Pro. — Megabill in limbo with GOP senators locked in last-minute talks, POLITICO Pro reports. — Treasury fills out key policy roles, per POLITICO Pro. — Moolenaar urges Lutnick to box China out on AI, POLITICO Pro reports. — Trump plans executive orders to power AI growth in race with China, per Reuters. THAT'S ALL FOR MORNING TRADE! See you again soon! In the meantime, drop the team a line: dpalmer@ ddesrochers@ and ahawkins@ Follow us @POLITICOPro and @Morning_Trade.
Yahoo
13-04-2025
- Politics
- Yahoo
Hegseth on countering China: 'We've been sort of asleep at the wheel'
Fresh off a midweek trip to Panama, Defense Secretary Pete Hegseth on Sunday accused China of seeking to take the country's famed Canal. "The communist Chinese want to control politicians," Hegseth said on Fox News' "Sunday Morning Futures With Maria Bartiromo." "They're building infrastructure projects. They want to surveil. They want to take that canal. President Trump says, not on our watch, and we're fighting back." The United States, Hegseth said, had been "asleep at the wheel." No longer. The Defense Department last week touted several key victories Hegseth extracted in Panama, including agreeing on a joint declaration that will allow U.S. warships and auxiliary ships to proceed "first and free" along the canal. The two countries also signed an agreement on cooperative security activities. "The Chinese didn't like what happened in Panama this week, not at all, because this is a return of U.S. leadership, peace through strength and the course was charted by President Trump," Hegseth said. Hegseth's tune on Panama is decidedly different from the rhetoric employed by Trump following his November election victory. Trump himself has floated plans to take the canal, refusing to rule out military force. The United States had ceded the canal to Panama following agreements negotiated by President Jimmy Carter in 1977. Hegseth on Sunday touted the exit Panama announced in February from China's Belt and Road Initiative as evidence that the two countries are working together. "We're getting to the point where Panama and the U.S. are shoulder to shoulder saying, 'Get out China,'" Hegseth said. Hegseth also praised Trump's push for a diplomatic solution with Iran over its nuclear program, but left the door open to more ominous moves from the Defense Department absent an agreement. Special envoy Steve Witkoff spoke with Iranian Foreign Minister Abbas Araghchi on Saturday, the first known direct contact between the U.S. and Iran since Trump's return to office. But Trump has predicted that if the two sides are unable to agree on a nuclear program deal, "Iran is going to be in great danger." "I can tell you that President Trump is dead serious on this issue. He's dead serious that Iran cannot have a nuclear weapon," Hegseth said. "He's said that for 20 years. He's been consistent, that is clear. He's dead serious that he wants it done at the negotiating table. He wants it done peacefully, and that's why he's going straight to these talks."
Politico
13-04-2025
- Business
- Politico
Hegseth on countering China: ‘We've been sort of asleep at the wheel'
Fresh off a midweek trip to Panama, Defense Secretary Pete Hegseth on Sunday accused China of seeking to take the country's famed Canal. 'The communist Chinese want to control politicians,' Hegseth said on Fox News' 'Sunday Morning Futures With Maria Bartiromo.' 'They're building infrastructure projects. They want to surveil. They want to take that canal. President Trump says, not on our watch, and we're fighting back.' The United States, Hegseth said, had been 'asleep at the wheel.' No longer. The Defense Department last week touted several key victories Hegseth extracted in Panama, including agreeing on a joint declaration that will allow U.S. warships and auxiliary ships to proceed 'first and free' along the canal. The two countries also signed an agreement on cooperative security activities . 'The Chinese didn't like what happened in Panama this week, not at all, because this is a return of U.S. leadership, peace through strength and the course was charted by President Trump,' Hegseth said. Hegseth's tune on Panama is decidedly different from the rhetoric employed by Trump following his November election victory. Trump himself has floated plans to take the canal, refusing to rule out military force. The United States had ceded the canal to Panama following agreements negotiated by President Jimmy Carter in 1977. Hegseth on Sunday touted the exit Panama announced in February from China's Belt and Road Initiative as evidence that the two countries are working together. 'We're getting to the point where Panama and the U.S. are shoulder to shoulder saying, 'Get out China,'' Hegseth said. Hegseth also praised Trump's push for a diplomatic solution with Iran over its nuclear program, but left the door open to more ominous moves from the Defense Department absent an agreement. Special envoy Steve Witkoff spoke with Iranian Foreign Minister Abbas Araghchi on Saturday, the first known direct contact between the U.S. and Iran since Trump's return to office. But Trump has predicted that if the two sides are unable to agree on a nuclear program deal, ' Iran is going to be in great danger .' 'I can tell you that President Trump is dead serious on this issue. He's dead serious that Iran cannot have a nuclear weapon,' Hegseth said. 'He's said that for 20 years. He's been consistent, that is clear. He's dead serious that he wants it done at the negotiating table. He wants it done peacefully, and that's why he's going straight to these talks.'
CNN
11-03-2025
- Business
- CNN
5 things to know for March 11: Dow plummets, Moscow drone attack, Tesla protests, Duterte arrested, NASA delay
Pope Francis is improving and no longer in 'imminent danger' from the infection he was hospitalized with nearly a month ago, a Vatican source said Monday. Here's what else you need to know to Get Up to Speed and On with Your Day. Get '5 Things' in your inbox If your day doesn't start until you're up to speed on the latest headlines, then let us introduce you to your new favorite morning fix. Sign up here for the '5 Things' stocks plunged, bitcoin stumbled and Wall Street's fear gauge hit its highest level this year as concerns about President Donald Trump's economic policy led to a widespread market selloff on Monday. Stock markets across Asia sank today following mounting fears of a serious economic downturn in the world's largest economy. US stocks slid throughout Monday and, despite a brief afternoon rally, closed in the red. The Dow closed lower by 890 points, or 2.08%, pulling back from a loss of more than 1,100 points at one point. The widespread selloff was mostly driven by anxiety about the impact of Trump's tariffs. When asked on Fox News' 'Sunday Morning Futures With Maria Bartiromo' if he was expecting a recession this year, Trump said 'I hate to predict things like that. There is a period of transition because what we're doing is very big.' Trump's apparent acknowledgment that his policies, including tariffs, could cause a period of 'transition' for the economy appeared to indicate that short-term pain is in the offing and that he is prepared for a country weary of high prices for groceries and housing to endure it. Russia said it downed 337 Ukrainian drones launched at its territory overnight, hours ahead of critical talks between officials from Washington and Kyiv. Russia's defense ministry said 91 of those drones targeted the Moscow region. If confirmed, the aerial attacks would represent one of the largest on Russia since its invasion of Ukraine. A Russian official said at least two people were killed and six wounded in the Moscow region. Video geolocated by CNN shows an explosion at an apartment building in the southern Moscow region. Two Moscow airports were closed for safety reasons and several flights to the Russian capital were redirected to other airports, according to state-run news agency TASS. The reported attacks come ahead of talks underway between US and Ukrainian delegations in Saudi Arabia. Ahead of the meeting, Secretary of State Marco Rubio said the US wanted to hear what concessions Ukraine would be willing to make in negotiations to end the war with Russia, and that the talks could determine whether Washington resumes providing military aid and full intelligence sharing with Kyiv. Police across the US are investigating a series of attacks on Tesla showrooms, charging stations and Tesla vehicles, as vitriol escalates against CEO Elon Musk. There have also been peaceful protests at many Tesla locations, which involve demonstrators carrying signs and chanting 'Elon Musk has got to go' in response to the slashing of federal jobs and budgets by Musk's Department of Government Efficiency. Last week, in the early morning hours, seven charging stations in a mall outside of Boston were set on fire, and just outside Portland, Oregon, police responded to gunshots fired at a Tesla showroom. Police in Brookline, Massachusetts, posted a video on X of one individual defending his tagging of a Tesla vehicle as 'free speech.' Musk, a self-described free speech absolutist who owns X, reposted the police post with the comment: 'Damaging the property of others, aka vandalism, is not free speech!' While there have been no reports of injuries, the incidents pose a potential financial problem for Tesla. The company faces declining sales for the first time due to increased competition and backlash over Musk's contentious role in the Trump administration. Former Philippine President Rodrigo Duterte was arrested today by the government he once led after it said it received an International Criminal Court (ICC) warrant accusing him of crimes against humanity. Duterte has been investigated by the ICC over his brutal anti-drugs crackdown during his time in office that killed more than 6,000 people based on police data, though independent monitors believe the number of extrajudicial killings could be much higher. Duterte, 79, was taken into custody amid chaotic scenes at Manila's main airport after returning to the Philippines from Hong Kong. Duterte questioned the basis for the warrant. 'What is the law and what is the crime that I committed?' he said in a video posted online by his daughter. CNN has reached out to Interpol and the ICC for comment. Previously labeled 'Asia's Trump' by some commentators due to his unorthodox leadership style and bombastic rhetoric, Duterte swept to power in 2016 on a promise to wage war against drugs and drug pushers in the Southeast Asian nation. The ensuing brutal crackdown killed thousands — many of the victims were young men from impoverished shanty towns, shot by police and rogue gunmen as part of a campaign to target dealers. NASA's two-for-one launch of its newest space telescope, SPHEREx — designed to seek out the key ingredients for life in the Milky Way — alongside a sun-focused mission called PUNCH is facing another delay. Both missions were expected to lift off together aboard a SpaceX Falcon 9 rocket late Monday from Vandenberg Space Force Base in California. But NASA and SpaceX decided to stand down due to unfavorable weather conditions, the space agency said. The launch could be rescheduled sometime before the end of April. Although the missions have entirely different goals, launching PUNCH as a secondary rideshare along with SPHEREx helps get 'more science into space for less cost,' said Dr. Nicky Fox, associate administrator for NASA's Science Mission Directorate. Both groundbreaking missions promise to reveal previously unseen and unknown aspects of our solar system and galaxy. The world's most polluted cities All but one of the world's top 20 most polluted cities last year was in Asia, a new study shows. The top five North American cities that made the list were all located in one US state. A newer, smaller CVS The once-ubiquitous chain is opening around a dozen smaller stores with a full-service pharmacy and some over-the-counter products. It's part of CVS' turnaround plan to tackle increased competition. Trump's 'The Apprentice' now available to stream The reality TV series that propelled now-President Trump from real estate mogul to TV personality will stream exclusively on Amazon's Prime Video, with the first season hitting the platform this week. Ski team admits trying to 'cheat the system' Two Norwegian ski jumpers were disqualified from an event at the 2025 FIS Nordic World Ski Championships after their jumpsuits were found to have been manipulated with a reinforced thread. NFL free agency kicks off with big movesBags are being packed and new faces are popping up all over the NFL map: The free agency madness has officially begun, with the New York Jets and Seattle Seahawks taking center stage. 60That's the number of US colleges and universities the Department of Education says are under investigation for alleged violations 'relating to antisemitic harassment and discrimination.' The department's Office for Civil Rights warned the institutions of possible consequences if they didn't take adequate steps to protect Jewish students. 'Yes, I gave birth in pearls and sunglasses. Don't ask, a lot was happening.'Rihanna recently shared photos on Instagram of her holding her sons, born in 2022 and 2023, shortly after giving birth. The intimate images captured moments that the singer said were 'by far the most powerful thing I've ever done as a woman.' Check your local forecast here>>> Crimson tideThe iron oxide-rich soil of Hormuz Island, Iran, turned heavy rains into a red tide. Click here to watch.
Times of Oman
11-03-2025
- Business
- Times of Oman
US stocks plunges, bitcoin stumble as fear grows following Trump's 'recession' remarks
Washington, DC: US stocks tumbled, bitcoin plunged, and the Wall Street fear gauge reached its highest level as concerns regarding US President Donald Trump's economic policy resulted in widespread market selloff on Monday, CNN reported. The rout on Wall Street began early, with all three major indexes opening in the red. US stocks witnessed a drop throughout the day, and despite a brief afternoon rally, they closed in the red. The Dow closed lower by 890 points, pulling back from a loss of over 1,100 points at one point. The broader S&P 500 also plunged, witnessing a drop of 2.7 per cent, while the tech-heavy Nasdaq Composite reduced by 4 per cent. The Nasdaq posted its biggest single-day drop since September 2022. In addition, the Dow and S&P 500 each posted their worst day of the year. The rout extended a miserable month for markets, which have seen all three major indexes losing their gains since the US presidential election in November. The widespread selloff was majorly triggered due to concerns regarding the effect of Trump's tariff policy. In an interview that aired on Sunday, Trump refused to rule out the possibility of a recession, and said that the US economy would see "a period of transition". He made these remarks during an interview on Fox News' "Sunday Morning Futures With Maria Bartiromo". When asked whether he expected a recession this year, Trump responded, "I hate to predict things like that. There is a period of transition because what we're doing is very big." Tech stocks led the selloff, which weighed on the S&P 500 and dragged the Nasdaq into correction territory. The S&P 500 closed down at 8.6 per cent from its record high on February 19. Tech stocks - Alphabet (GOOG), Amazon (AMZN), Apple (AAPL), Meta (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA) were all in the red on Monday. Anthony Saglimbene, chief market strategist at Ameriprise, said, "President Trump's comments not necessarily taking a recession off the table unnerved investors who were already unnerved." Meanwhile, the White House on Monday announced that Donald Trump was set to spark "historic" growth during his second term as US President. In a statement, White House spokesman Kush Desai said, "Since President Trump was elected, industry leaders have responded to President Trump's America First economic agenda of tariffs, deregulation, and the unleashing of American energy with trillions in investment commitments that will create thousands of new jobs." Desai further said, "President Trump delivered historic job, wage, and investment growth in his first term, and is set to do so again in his second term." Tesla closed down 15.4 per cent on Monday. Shares of Tesla witnessed a rise following the US presidential election in November. However, Tesla's stock is down almost 45 per cent this year. In the recent weeks, the shares of the company have been hit amid protests against Tesla CEO Elon Musk for his oversized role in the Trump administration, as well as reduced sales in Europe. Shares of Nvidia witnessed a drop of five per cent, and Palantir (PLTR), another star of the artificial intelligence trade, reduced by 10 per cent. The VIX, Wall Street's fear gauge, increased to its highest level this year. " Bitcoin dropped to around USD 78,000 on Monday -- its lowest level since November -- amid a selloff of risky assets. So far this month, stocks have been hit amid uncertainty around Trump's tariff policy. The S&P 500 was reduced by 3.1 per cent last week, posting its worst week since September. Yardeni Research President Ed Yardeni said, "The stock market is losing its confidence in the Trump 2.0 policies." Trump had threatened to enact tariffs on imports from Canada and Mexico. However, he later announced that the tariffs would come into effect in April. He doubled the tariff on all Chinese imports from 10 per cent to 20 per cent, and a 25 per cent tariff on all steel and aluminium imports is set to be implemented on March 12. Furthermore, Trump threatened last week to impose 250 per cent tariff on Canadian dairy products and a "tremendously high" tariff on its lumber. Speaking to Fox News, he said that tariffs may still "go up as time goes by." The yield on the 10-year US Treasury fell to 4.225 per cent as investors snapped up government bonds, indicating concerns regarding uncertainty and the economy's growth. Looking ahead this week, investors will be focused on monthly inflation data expected on Wednesday and Thursday to gauge whether inflation remained stubborn in February. A recession is commonly defined by two consecutive negative quarters of gross domestic product growth.
