Latest news with #US-EU
Business Recorder
4 hours ago
- Business
- Business Recorder
Asian currencies: South Korean won, stocks outshine
BENGALURU: The South Korean won and stocks rose sharply on Wednesday, making them standout performers in mixed trading elsewhere in Asia as investors cheered Seoul's progress in trade negotiations with the United States ahead of the August 1 tariff deadline. The won strengthened 0.7% to 1,378.4 per dollar, while Seoul shares advanced more than 1% to a near four-year high. Samsung Electronics led the gains after signing a $16.5 billion chip-supply deal with Tesla earlier this week. Korean assets gained momentum as three cabinet-level officials met US Commerce Secretary Howard Lutnick in Washington, with Finance Minister Koo Yun-cheol preparing to meet Treasury Secretary Scott Bessent on Thursday. Seoul announced plans for a comprehensive trade package over the weekend. The urgency comes amid a broader regional race after Vietnam, Indonesia, the Philippines and Japan secured agreements with Washington, intensifying pressure on remaining economies. Thailand expects to conclude talks before the deadline to avoid tariffs as high as 36%. Elsewhere, the Indian rupee was the region's biggest underperformer after US President Donald Trump said India may face 20%-25% tariffs. It slipped 0.6% to a four-month low and the central bank likely intervened to arrest the decline, traders told Reuters. Other regional currencies traded flat or lower, with Singapore's dollar, Malaysia's ringgit and Thailand's baht showing little movement. Regional stock markets were mixed, with Taipei rising more than 1% and Bangkok up 0.3%, while Jakarta and Kuala Lumpur fell 0.6% and 0.2%. The dollar strengthened as markets grew wary about their earlier optimism towards the recently announced US-EU trade framework. Investors viewed the lopsided agreement as symbolic rather than structural, reinforcing the greenback's appeal. 'Heading into the second half of the year, besides a payback from export frontloading in the first half, the impact of the high tariff rate on the bloc's (India and ASEAN) exports to the US is also likely to be felt,' DBS analysts said in a note. US and Chinese officials agreed on Tuesday to seek an extension of their 90-day tariff truce following talks in Stockholm, though Trump will decide whether to extend the August 12 deadline. Singapore's central bank kept monetary settings unchanged, dashing easing hopes. 'Policymakers opted for a cautious approach to bide time until more clarity emerges on global trade,' said Shivaan Tandon, markets economist at Capital Economics.
Mint
4 hours ago
- Automotive
- Mint
Porsche, Aston Martin hike US prices as hopes for tariff sweeteners fade
Porsche, Aston Martin flag U.S. price hikes US-EU trade deal imposes 15% tariffs, averts larger trade war Mercedes, Porsche cool hopes of auto specific trade deals By Rachel More, Alessandro Parodi and Shashwat Awasthi BERLIN, - European luxury carmakers including Porsche and Aston Martin have surged ahead with U.S. price hikes, which could point the way for bigger brands to follow in their wake as companies pass on the cost of tariffs. The United States and Europe reached a trade deal that will see EU-made cars hit with a 15% tariff from August, lower than once threatened but far higher than the 2.5% rate before U.S. President Donald Trump launched his trade offensive this year. On Wednesday, Volkswagen's luxury brand Porsche said it had raised U.S. prices by between 2.3% and 3.6% in July, with no plans for now to establish a U.S. production presence - a move that would let it avoid the levies. "This is not a storm that will pass," Porsche CEO Oliver Blume said after the company cut its full-year profit target and flagged a $462 million hit from tariffs in the first half. "We continue to face significant challenges around the world." U.S. tariffs have pummelled global automakers, forcing companies such as GM, Volkswagen, Hyundai and Mercedes-Benz to book billions of dollars of losses, issue profit warnings, slash forecasts and raise prices. Ford Motor, which boasts domestic production for around 80% of the vehicles it sells in the U.S., said on Wednesday that second-quarter results took an $800 million hit from tariffs and higher U.S. levies would likely cost more than expected for the year. Japanese carmaker Nissan reported a $535 million quarterly loss on Wednesday, impacted by U.S. tariffs, restructuring and lower sales volumes. British sports-car maker Aston Martin said it had made incremental price increases in the United States since last month, issuing a profit warning based on the U.S. tariffs impact and prolonged suppressed Asian demand. ADDITIONAL COSTS While bigger carmakers have so far held off, other sectors have seen price hikes as companies have looked to pass on the additional cost of tariffs. Analysts said larger carmakers could take similar steps in the second half of the year. "Into H2, we are looking to gain additional visibility with regards to the ability of Mercedes-Benz and the rest of the premium OEMs to increase prices in the U.S. in order to offset the impact of tariffs," J.P. Morgan said in a note. European carmakers are also getting less optimistic that they could seal extra sector-specific tariff reductions, resigned to dealing with the 15% rate. Mercedes CEO Ola Kaellenius told analysts on Wednesday that the group was assuming tariffs would remain at 15%, throwing cold water on hopes companies may be able to negotiate individual deals. "For all intents and purposes, that global deal for now is it," said Kaellenius, also president of Europe's car lobby ACEA. Any side deals were "very uncertain". Volkswagen had said last week it was hoping investment commitments could help it negotiate lower U.S. tariffs. But Porsche CEO Blume, also head of VW, suggested there would not be a separate U.S. deal for the automotive sector. "I agree with Ola Kaellenius' assessment that there will not be a separate automotive deal," Blume said. This article was generated from an automated news agency feed without modifications to text.
AllAfrica
4 hours ago
- Business
- AllAfrica
EU-US trade deal ultimately not in America's interests
European complaints about the trade agreement they just signed with the United States are almost universal. But will the tariffs America has imposed on half the world be effective? The issue is highly controversial, and the consensus is that they possibly won't be. Clearly, they are a US gamble to fix its economy and signal both domestically and internationally its determination to do so. Once that decision was made, what can a weak and divided EU practically do? Perhaps the real point of the US-EU trade deal is that it came immediately after China and the EU failed to reach a similar agreement. Despite decades of different rhetoric, transatlantic ties are stronger than those linking Eurasia. However, the true twist may be different. The deal is being presented as a US victory and an EU loss. This narrative alone can sour and weaken a bond that has been the anchor of international stability for over a century. France's Prime Minister, François Bayrou, called the European Union's trade deal with America a 'dark day' for the bloc. Germany's Chancellor, Friedrich Merz, said the accord would 'substantially damage' his country's economy. At the FT, Martin Wolf argued: 'The economic paradigm has been fundamentally altered. Is this new arrangement stable? Or is much more craziness ahead? When it becomes obvious that US trade deficits are not shrinking, what will US President Donald Trump do? How will this affect global relations?' Yet, several other countries and most European pundits have acknowledged that the deal—under which the EU will face a 15% tariff on most goods, including cars—is better than a full-scale trade war. There are two sets of problems here. One concerns US economic struggles, and the other involves communication. The US's struggle: how to fix US re-industrialization, trade deficits and thus its enormous debt. The world depends on the US. Without a thriving US, there is no world as we know it. In this context, the US (right or wrong) can claim a kind of victory. The other issue is communication, and here it is a disaster. Perhaps never in transatlantic history has there been so much European annoyance with America, amplified by the EU's feeling of powerlessness. Some go to the extreme of imagining a global shift toward greater EU reliance on China and less on the US—that, in the long run, could reshape the world. Yet, this would only be possible if China opened its markets and currency, which now seems highly unlikely. Moreover, China's support for Russia in Ukraine cuts deeply into European interests, and no amount of trade sweet deals can fix such a vital and complex issue for many European countries. But the lack of alternatives doesn't solve the transatlantic rift; it simply makes it more frustrating and may even deepen it. A colossal mistake in politics is to think that frustration—without practical solutions—can be ignored. But frustration always spills over into something else, most likely into issues we can't see at the moment. The US cannot afford to be cavalier about this. The European frustration is part of a broader phenomenon: Germany is coordinating more with the UK, which is talking more with Japan, Canada, Australia, South Korea and New Zealand. These countries, once just spokes of the US wheel, are increasingly coordinating and preparing to confront the US indirectly. America may think it can use the old 'divide et impera' (divide and conquer). But everybody knows the old maxims and the ways around them. The US might need to think more comprehensively. Unintentionally, the US has built a new, tighter coalition of allies—many with grudges against America—something unprecedented in history. Of course, nobody is interested in breaking a wheel that has worked so well for so many years, but things won't just sort themselves out; all parties need to work together to fix the troubles. Whatever the economic results, the communication must be fixed; it must be a win-win proposition for everybody, not a win-lose one. Otherwise, the US could win a deal and lose the world. If it's not fixed, there's no reason to think these countries will turn toward China; they make a world in themselves, and numerous 'non-aligned' nations like India, Indonesia, Mexico, Nigeria and Brazil could be eager to coordinate independently of the US. This could lead to a new world order where the US is no longer the central power, with the balance shifting between London, Berlin and Tokyo. In theory, these three could coordinate a currency peg or introduce a new stable currency to bolster the system. Whatever deal has been struck between the US and EU now could then be forfeited in a few years. It hasn't happened yet, but multiple signs suggest that this could be the future movement. If America doesn't fix this problem soon, it may face greater trouble than it bargained for—not from China, but from these shifting alliances. And, if China plays its cards well, it could seize a new opportunity. This article first appeared on Appia Institute and is republished with permission. Read the original here.
Yahoo
6 hours ago
- Business
- Yahoo
Tariffs Hurt Footwear, Apparel Growth, Says Moody's
Unresolved U.S. tariff policy keeps outlook for the global retail and apparel sector at negative, said credit ratings firm Moody's Ratings. 'U.S. companies in the segment still face higher costs even at current tariff levels, with apparel and footwear, big-box and department stores struggling most,' said credit analysts at Moody's in a report last week. More from WWD Questions Remain on US-EU Trade Deal, But 'Reduction of Uncertainty' Could Be Positive Step CEO TALKS: Tim Little of Grenson on the Power of Retail, Potential Investors and Keeping a Heritage Footwear Brand Alive ERL Takes Flip-flop Trend to New Heights as the Brand Continues to Grow Footwear The credit analysts also kept their revenue growth projection for the next 12 months in the 0-3 percent range, reflecting weak unit demand offsetting increased pricing to defray higher costs. 'The effect of tariffs will drag materially on earnings through at least the first half of 2026, since companies will have limited ability to raise prices without hurting demand,' the analysts concluded, noting that affordability remains particularly critical for middle- and lower-income consumers. 'The costs of implemented tariffs will begin to hurt retailers' profitability once companies sell through any inventory that they purchased earlier in 2025,' they also said. While the largest retail and apparel firms can absorb the higher costs from tariffs, even they may face higher near-term costs as they try to restructure supply chains or re-engineer products to use inputs more cost effectively. U.S. footwear and apparel firms, and department stores, are the most likely to struggle with further tariff hikes due to reciprocal tariffs on many Asian countries, which are key sources of supply. Moody's also cited Nike and Under Armour as firms impacted by their heavy concentration in technical apparel and footwear that is difficult to move out of Asian manufacturing hubs. In addition, 'heavy promotional activity in some of their assortment makes it harder to raise prices,' the report said. The credit analysts also said they expect Walmart to outperform, as its scale and significant exposure to grocery has relatively low tariff exposure helped by the discounter's negotiating leverage with vendors coupled with its supply-chain expertise. In contrast, they expect Target's operating performance will be weak, due in part to the mass discounter's higher mix of discretionary general merchandise mix. Separately, the Conference Board's Consumer Confidence Index in July rose 2 points to 97.2 from a revised 95.2 in June. The Present Situation Index slipped 1.5 points to 131.5, while the Expectations component rose 4.5 points to 74.4 —although that level is below the threshold of 80, which typically signals a recession ahead for the sixth consecutive month. One data point to note is that the consumer appraisal of current job availability has weakened for the seventh consecutive month, reaching its lowest level since March 2021, said Stephanie Guichard, senior economist, global indicators at the Conference Board. 'Consumers' write-in responses showed that tariffs remained top of mind and were mostly associated with concerns that they would lead to higher prices,' Guichard said. Best of WWD All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos]
DW
9 hours ago
- Business
- DW
US trade deal could lock the EU into fossil fuel dependency – DW – 07/30/2025
Critics say Europe's $750 billion energy deal with the US could risk the EU's climate goals and energy security if it goes ahead. Environmental groups have criticized a new trade deal that could see Europe spending more than $750 billion (€700 billion) on mostly fossil fuel imports from the United States over the next three years, warning it could undermine the bloc's climate targets. "This risks locking Europe into decades of fossil fuel dependence, volatile energy bills, and accelerating the wildfires and flooding already wreaking havoc across the continent," said Andreas Sieber, associate director of policy and campaigns at climate group in a statement. As part of an agreement that US President Donald Trump dubbed the "biggest deal ever," EU Commission President Ursula von der Leyen said US energy would replace Russian oil and gas, "which we do not want anymore." Instead, Europe would purchase "more affordable and better" liquefied natural gas (LNG) from the US, said von der Leyen. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video The deal, which helped avert a trade war, includes a 15% tariff on key EU exports like cars. But critics said it represented an "about-turn" in Europe's climate policy. "The new US-EU trade deal is a dramatic U-turn on the European Commission's and President von der Leyen's priorities from a couple of years ago," said Esther Bollendorff, senior gas policy coordinator at climate group CAN Europe. "Namely, building a future-proof European Green Deal based on climate ambition and rapid renewables build-out." The Commission, under von der Leyen, unveiled the Green Deal to ramp up Europe's ambitions on fighting climate change at the end of 2019. Europe is the fastest-warming region globally, say scientists. The continent saw its hottest year on record in 2024. Just weeks ago, the Commission presented proposals for a 90% bloc-wide reduction in greenhouse gas emissions by 2040 compared with 1990 levels. The mid-term target aims to help the EU reach its wider 2050 goal of carbon neutrality, with measures including improving energy efficiency, electrifying the transport sector and boosting green energy. In the next five years, the bloc aims to have 42.5% of its energy come from renewable sources. The US-EU trade deal "flies in the face" of these commitments, said Luke Haywood, head of climate and energy at the European Environmental Bureau, a network of environmental organizations. "Tripling US energy imports in just three years isn't only physically implausible, it would derail the EU's mid-term decarbonization targets," he added in a statement. Burning oil and gas emits greenhouse gases like CO2, which trap heat in the atmosphere and warm the planet, fueling more extreme weather. Swapping pipeline gas for US LNG would further increase Europe's emissions, said Chris Aylett, a research fellow at the Environment and Society Center of UK-based independent policy institute Chatham House. That's because LNG production and transport emits more methane — a greenhouse gas far more potent than CO2, though it doesn't stay as long in the atmosphere. Still, there is skepticism about whether Europe can live up to its new pledge on US energy spending, with Aylett saying it would be "very difficult." In 2024, the EU imported around €60 billion worth of oil and gas from the US. Another €24 billion came from Russia. Taken together, that's a "long way away" from the €216 billion the EU promised to spend each year, Aylett told DW. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video The European Commission also cannot force member states or companies to buy US energy, said Aylett. "It's an aspiration really. The EU has the means that it could encourage it [...] but it's all voluntary, so the Commission itself wouldn't be making the purchases," he added. "In some ways the promise has been made that the Commission itself doesn't really have any ability to deliver." Swapping dependence on Russian energy with reliance on the US could be "catastrophic" for energy security too, warned Aylett. "It would be breaking the very first rule, which is that you don't just rely on one supplier," he told DW, adding that it would make the bloc "extremely vulnerable."
