Latest news with #US15
Sydney Morning Herald
3 days ago
- Business
- Sydney Morning Herald
Why did Trump double his steel tariffs? Because he could
Apart from trying to show that he still has some, albeit more limited, authority to act on tariffs, Trump's announcement, to a rally of US steelworks, had a secondary purpose. Loading During last year's election campaign, Trump was vehemently opposed to a proposed $US15 billion ($23.3 billion) acquisition of US Steel by Japan's Nippon Steel - as was Joe Biden, who blocked the deal only days before he left office. Both were chasing the votes of steelworkers and their powerful union in the critical swing state of Pennsylvania, where US Steel is headquartered and has its major plants. Having won the election, however, Trump has had a change of mind. While the US will impose some significant conditions on the deal -- including, perhaps, a 'golden share' that would give the government a veto over major decisions along with a commitment from Nippon Steel to appoint a US chief executive and a majority of Americans to the board – it now appears that he will approve the deal, even though he says he hasn't seen its final details. Nippon Steel, one of the world's most sophisticated steel producers, has promised to invest about $US14 billion in US Steel's operations, which have been struggling, shrinking and suffering from under-investment for decades. Trump's doubling of the tariff rate for steel and aluminium is a way of justifying the decision to approve the deal, as well as enhancing the economics of US Steel and other US steelmakers and helping to underwrite Nippon Steel's massive investments, most of which will occur over the next four years. Trump's original tariffs on steel and aluminium infuriated America's trade partners, including Australia, even though Australia's exports of those metals to the US are quite modest. Canada, whose steel exports represent about a quarter of US steel imports and half its aluminium imports, has far more at stake. Mexico, Brazil, South Korea, Vietnam, Japan and European nations will also be impacted, with Canada and the European Union already threatening retaliation, as they did in response to Trump's initial 25 per cent tariffs. Australia is still, probably fruitlessly, seeking an exemption. Loading The decision to allow the Nippon Streel deal to proceed, if that is the final outcome, is good policy. The US steel industry is small – about half the size it was half a century ago -- and has been shrinking. It has poor profitability and ageing technology. Nippon Steel's investment and its technologies can arrest that decline. The decision to double the tariffs on steel – indeed the original decision to impose the 25 per cent tariff – is, however, poor policy. It will increase investment in the sector, and will probably improve its profitability, plant utilisation rates and employment numbers. But that will come at a significant cost. In 2018, when Trump first imposed tariffs on imported steel, steel prices rose almost 10 per cent, the sector's profits rose by about $US2.5 billion, capacity utilisation jumped from 74 per cent to about 80 per cent and nearly 10,000 jobs were added within the sector. The impact was quite short-lived, with those numbers subsequently reversing as the industry resumed its long-term decline. The initial impact was predictable. Tariffs are protectionist. They protect domestic industries and companies from more efficient producers elsewhere by boosting their sales, margins and profits. That's what happened after the 2018 tariffs. Loading They come, however, at a cost to the customers of the protected industries, which is also what happened after Trump's 2018 tariffs were imposed. A Peterson Institute for International Economics study concluded that the 2018 tariffs cost US downstream steel-using industries about $US5.6 billion, or about $US650,000 for each new job they added in the steel sector. The US Federal Reserve Board concluded that they cost about 75,000 jobs in those downstream industries, or more than eight times the number of jobs added by the steelmakers. Steel is a key input to the manufacturing industries, whose protection Trump has trumpeted as the rationale for his trade wars. It's also extensively used in the construction sector. With the 25 per cent version of the tariffs on steel and aluminium not only set at twice the 2018 rate, but also applying more broadly – they now also extend to downstream products containing the metals – their impact on steel and aluminium users and US companies and consumers will be far more significant and damaging. Trump might regain a little of the authority and ego he lost when the court knocked out, perhaps temporarily, his broader weaponisation of tariffs against the rest of the world. He might also have ingratiated himself with the steelworkers whose jobs he will protect, but the economic benefits of his metals tariffs will be far outweighed by their costs to the rest of the US economy. The probable impact on the steel and aluminium industries and their customers provide, in fact, a glimpse of the broader damage that Trump's trade wars on everyone – if the courts allow him to continue them, or he can find other means to implement them – will inflict on the world's largest economy.
The Age
3 days ago
- Business
- The Age
Why did Trump double his steel tariffs? Because he could
Apart from trying to show that he still has some, albeit more limited, authority to act on tariffs, Trump's announcement, to a rally of US steelworks, had a secondary purpose. Loading During last year's election campaign, Trump was vehemently opposed to a proposed $US15 billion ($23.3 billion) acquisition of US Steel by Japan's Nippon Steel - as was Joe Biden, who blocked the deal only days before he left office. Both were chasing the votes of steelworkers and their powerful union in the critical swing state of Pennsylvania, where US Steel is headquartered and has its major plants. Having won the election, however, Trump has had a change of mind. While the US will impose some significant conditions on the deal -- including, perhaps, a 'golden share' that would give the government a veto over major decisions along with a commitment from Nippon Steel to appoint a US chief executive and a majority of Americans to the board – it now appears that he will approve the deal, even though he says he hasn't seen its final details. Nippon Steel, one of the world's most sophisticated steel producers, has promised to invest about $US14 billion in US Steel's operations, which have been struggling, shrinking and suffering from under-investment for decades. Trump's doubling of the tariff rate for steel and aluminium is a way of justifying the decision to approve the deal, as well as enhancing the economics of US Steel and other US steelmakers and helping to underwrite Nippon Steel's massive investments, most of which will occur over the next four years. Trump's original tariffs on steel and aluminium infuriated America's trade partners, including Australia, even though Australia's exports of those metals to the US are quite modest. Canada, whose steel exports represent about a quarter of US steel imports and half its aluminium imports, has far more at stake. Mexico, Brazil, South Korea, Vietnam, Japan and European nations will also be impacted, with Canada and the European Union already threatening retaliation, as they did in response to Trump's initial 25 per cent tariffs. Australia is still, probably fruitlessly, seeking an exemption. Loading The decision to allow the Nippon Streel deal to proceed, if that is the final outcome, is good policy. The US steel industry is small – about half the size it was half a century ago -- and has been shrinking. It has poor profitability and ageing technology. Nippon Steel's investment and its technologies can arrest that decline. The decision to double the tariffs on steel – indeed the original decision to impose the 25 per cent tariff – is, however, poor policy. It will increase investment in the sector, and will probably improve its profitability, plant utilisation rates and employment numbers. But that will come at a significant cost. In 2018, when Trump first imposed tariffs on imported steel, steel prices rose almost 10 per cent, the sector's profits rose by about $US2.5 billion, capacity utilisation jumped from 74 per cent to about 80 per cent and nearly 10,000 jobs were added within the sector. The impact was quite short-lived, with those numbers subsequently reversing as the industry resumed its long-term decline. The initial impact was predictable. Tariffs are protectionist. They protect domestic industries and companies from more efficient producers elsewhere by boosting their sales, margins and profits. That's what happened after the 2018 tariffs. Loading They come, however, at a cost to the customers of the protected industries, which is also what happened after Trump's 2018 tariffs were imposed. A Peterson Institute for International Economics study concluded that the 2018 tariffs cost US downstream steel-using industries about $US5.6 billion, or about $US650,000 for each new job they added in the steel sector. The US Federal Reserve Board concluded that they cost about 75,000 jobs in those downstream industries, or more than eight times the number of jobs added by the steelmakers. Steel is a key input to the manufacturing industries, whose protection Trump has trumpeted as the rationale for his trade wars. It's also extensively used in the construction sector. With the 25 per cent version of the tariffs on steel and aluminium not only set at twice the 2018 rate, but also applying more broadly – they now also extend to downstream products containing the metals – their impact on steel and aluminium users and US companies and consumers will be far more significant and damaging. Trump might regain a little of the authority and ego he lost when the court knocked out, perhaps temporarily, his broader weaponisation of tariffs against the rest of the world. He might also have ingratiated himself with the steelworkers whose jobs he will protect, but the economic benefits of his metals tariffs will be far outweighed by their costs to the rest of the US economy. The probable impact on the steel and aluminium industries and their customers provide, in fact, a glimpse of the broader damage that Trump's trade wars on everyone – if the courts allow him to continue them, or he can find other means to implement them – will inflict on the world's largest economy.
The Advertiser
15-05-2025
- Business
- The Advertiser
Another Ronaldo hat-trick - as the best-paid athlete
Cristiano Ronaldo has topped Forbes' list of the world's highest-paid athletes for the third consecutive year, and the fifth time in his career. Following his move to Saudi Arabian club Al-Nassr, the 40-year-old superstar's estimated total earnings are now around $US275 million ($A430 million). The Portuguese forward increased his income by $US15 million ($A23 million) through off-field endorsements as well as lucrative sponsorship deals backed by his large social media followers: 939 million in total as of May. Golden State Warriors guard Stephen Curry, who in March became the first NBA player to reach 4000 career three-pointers, jumped to second place in the rankings with $US156 million ($A244 million). British boxer Tyson Fury claimed third place with $US135 million ($A211 million). Despite losing his world heavyweight titles to Oleksandr Usyk in December, Fury's income has been boosted by partnerships promoting Maltese tourism and his Netflix reality show. Dallas Cowboys quarterback Dak Prescott, reached fourth with $US137 million ($A214 million), thanks to record-breaking signing bonuses and a lucrative contract extension. Meanwhile, Argentine Lionel Messi dropped to fifth place with $US135 million ($A211 million) — the same as last year — having moved to Major League Soccer side Inter Miami, as well as continuing to receive high-profile endorsements from Adidas and Apple. Los Angeles Lakers forward LeBron James, nearing the end of his illustrious career, came sixth with $US133.8 million ($A209.1 million). MLB New York Mets outfielder Juan Soto came in at a remarkable seventh place, earning $US114 million ($A178 million). The 26-year-old Dominican signed a $US765 million ($A1.2 billion), 15-year contract, the largest in baseball history. French striker Karim Benzema, who plays for Saudi Arabia's Al Ittihad, is eighth with earnings of $US104 million ($A163 million). Japanese Shohei Ohtani is in ninth place with $US102.5 million ($A160.2 million), having deferred most of his earnings from his mega-contract with MLB team Los Angeles Dodgers. His earnings were boosted significantly by their World Series victory last year. NBA Phoenix Suns' Kevin Durant rounds off the top 10 with $US101.4 million ($A158.5 million). Cristiano Ronaldo has topped Forbes' list of the world's highest-paid athletes for the third consecutive year, and the fifth time in his career. Following his move to Saudi Arabian club Al-Nassr, the 40-year-old superstar's estimated total earnings are now around $US275 million ($A430 million). The Portuguese forward increased his income by $US15 million ($A23 million) through off-field endorsements as well as lucrative sponsorship deals backed by his large social media followers: 939 million in total as of May. Golden State Warriors guard Stephen Curry, who in March became the first NBA player to reach 4000 career three-pointers, jumped to second place in the rankings with $US156 million ($A244 million). British boxer Tyson Fury claimed third place with $US135 million ($A211 million). Despite losing his world heavyweight titles to Oleksandr Usyk in December, Fury's income has been boosted by partnerships promoting Maltese tourism and his Netflix reality show. Dallas Cowboys quarterback Dak Prescott, reached fourth with $US137 million ($A214 million), thanks to record-breaking signing bonuses and a lucrative contract extension. Meanwhile, Argentine Lionel Messi dropped to fifth place with $US135 million ($A211 million) — the same as last year — having moved to Major League Soccer side Inter Miami, as well as continuing to receive high-profile endorsements from Adidas and Apple. Los Angeles Lakers forward LeBron James, nearing the end of his illustrious career, came sixth with $US133.8 million ($A209.1 million). MLB New York Mets outfielder Juan Soto came in at a remarkable seventh place, earning $US114 million ($A178 million). The 26-year-old Dominican signed a $US765 million ($A1.2 billion), 15-year contract, the largest in baseball history. French striker Karim Benzema, who plays for Saudi Arabia's Al Ittihad, is eighth with earnings of $US104 million ($A163 million). Japanese Shohei Ohtani is in ninth place with $US102.5 million ($A160.2 million), having deferred most of his earnings from his mega-contract with MLB team Los Angeles Dodgers. His earnings were boosted significantly by their World Series victory last year. NBA Phoenix Suns' Kevin Durant rounds off the top 10 with $US101.4 million ($A158.5 million). Cristiano Ronaldo has topped Forbes' list of the world's highest-paid athletes for the third consecutive year, and the fifth time in his career. Following his move to Saudi Arabian club Al-Nassr, the 40-year-old superstar's estimated total earnings are now around $US275 million ($A430 million). The Portuguese forward increased his income by $US15 million ($A23 million) through off-field endorsements as well as lucrative sponsorship deals backed by his large social media followers: 939 million in total as of May. Golden State Warriors guard Stephen Curry, who in March became the first NBA player to reach 4000 career three-pointers, jumped to second place in the rankings with $US156 million ($A244 million). British boxer Tyson Fury claimed third place with $US135 million ($A211 million). Despite losing his world heavyweight titles to Oleksandr Usyk in December, Fury's income has been boosted by partnerships promoting Maltese tourism and his Netflix reality show. Dallas Cowboys quarterback Dak Prescott, reached fourth with $US137 million ($A214 million), thanks to record-breaking signing bonuses and a lucrative contract extension. Meanwhile, Argentine Lionel Messi dropped to fifth place with $US135 million ($A211 million) — the same as last year — having moved to Major League Soccer side Inter Miami, as well as continuing to receive high-profile endorsements from Adidas and Apple. Los Angeles Lakers forward LeBron James, nearing the end of his illustrious career, came sixth with $US133.8 million ($A209.1 million). MLB New York Mets outfielder Juan Soto came in at a remarkable seventh place, earning $US114 million ($A178 million). The 26-year-old Dominican signed a $US765 million ($A1.2 billion), 15-year contract, the largest in baseball history. French striker Karim Benzema, who plays for Saudi Arabia's Al Ittihad, is eighth with earnings of $US104 million ($A163 million). Japanese Shohei Ohtani is in ninth place with $US102.5 million ($A160.2 million), having deferred most of his earnings from his mega-contract with MLB team Los Angeles Dodgers. His earnings were boosted significantly by their World Series victory last year. NBA Phoenix Suns' Kevin Durant rounds off the top 10 with $US101.4 million ($A158.5 million).
AU Financial Review
12-05-2025
- Business
- AU Financial Review
The AI start-up growing faster than Canva
Australia's biggest venture capital firm says little-known artificial intelligence company Heidi Health has overtaken Canva and Leonardo AI as the fastest-growing company ever in its portfolio. Blackbird Ventures, which claims to have $7 billion in assets under management, said the six-year-old start-up is making $US15 million ($23 million) in annual recurring revenue after just a year of selling its main AI product. This puts it ahead of Canva in its early days and AI image generation start-up which Canva went on to acquire.
News.com.au
24-04-2025
- Politics
- News.com.au
Elon Musk's plan to have ‘legions of children'
Never fear. Come the apocalypse, Elon Musk is here - with a legion of offspring ready to rebuild civilisation in his image. 'Low birthrates will end civilisation,' the world's richest man posted to his personal social media platform, X, on Tuesday. The South African-Canadian-American billionaire, however, is digging for victory. He's reportedly fathered at least 14 children with four different women. And an investigation by the Wall Street Journal suggests there may be many more . 'To reach legion-level before the apocalypse, we will need to use surrogates,' Musk reportedly text-messaged right-wing social media influencer Ashley St Clair. The 26-year-old is embroiled in a bitter battle with 53-year-old Musk over custody of their newborn son. She has accused him of attempting to buy her silence with a $US15 million lump sum and $US100,000 a month in child support. Musk, who was appointed to the freshly created post of Special Government Employee by US President Donald Trump after donating $US288 million to his election campaign, is putting population on the national agenda. The White House is reportedly examining ways and means of encouraging young couples to get married and multiply. This week, The New York Times reported that proposals include a $US5000 'Baby Bonus', a gold medal for mothers of six children, and government scholarships for young higher education applicants who have children. Purveyor of Prophecy Forget global warming. Forget nuclear war. Forget soaring poverty. Musk is convinced the single greatest threat to humanity is a lack of children. 'Please look at the numbers — if people don't have more children, civilisation is going to crumble, mark my words,' Musk told a gathering of CEOs in 2021. 'And yet, so many people, including smart people, think that there are too many people in the world and think that the population is growing out of control. It's completely the opposite.' He repeated his dire prophecy last year, this time at an investors' conference in Saudi Arabia. 'If you don't make new humans, there's no humanity, and all the policies in the world don't matter,' he proclaimed. He's not exactly right. Nor is he entirely wrong. The United Nations projects the world's population will continue growing for the next 50 to 60 years. it is expected to level off after reaching 10.3 billion. What may be driving Musk's fears is the uneven distribution of that growth. US far-right and Christian nationalist movements are pushing the Great Replacement conspiracy theory - that a secret cabal of 'elites' is manipulating immigration, economics and fertility to eliminate white Europeans. This race-based paranoia is widely dismissed. Instead, analysts point to soaring living costs, shrinking housing, lack of child care, uncertain job security and poor health care driving falling birthrates in the United States. New figures show US births fell 2 per cent in 2023 compared to 2022. The previous figures had declined by 1 per cent per year since 2008. It's a worse story in Japan, South Korea and China. It's a similar story in Australia, Canada and the UK. But countries including Somalia, Chad, Nigher and Afghanistan have no such problems. We are Legion 'You've got to walk the talk,' Musk said in Saudia Arabia last year. 'So I do have a lot of kids, and I encourage others to have lots of kids.' According to unnamed sources quoted by the Wall Street Journal, Musk considers his profligacy to be 'helping seed the earth with more human beings of high intelligence.' Why he calls his children a 'legion' is unknown. It is a reference to a Roman military unit of 5000 heavily armed and well-trained soldiers. It is also a biblical reference. Mark 5:9 quotes a demon-possessed man saying: 'My name is Legion: for we are many.' But Musk is well known for his fascination with the authoritarian Caesars (emperors) who overthrew the Senate to lead the Roman Empire to its eventual collapse. He reportedly named his son with St. Clair 'Romulus'. According to Roman creation mythology, Romulus and his brother Remus were raised by wolves after being abandoned by their parent-gods. Remus was killed in a dispute between the brothers over where the city would be founded. Now, Musk has founded his own city. He's purchased several adjoining mansions and their estates in Austin, Texas. These are just a short walk from his personal mansion which, in turn, is close to the Silicon Hill industrial estate housing facilities for Space X, Tesla and X. He desires to bring all his children - and their mothers - there to 'be a part of one another's lives'. Silicon Hill Harem Musk has some unusual ideas about childbirth. And women. 'In all of history, there has never been a competitive army composed of women,' he reportedly texted St Clair. 'Not even once… 'Men are made for war. Real men, anyway.' St Clair claims Musk tried to convince her to get a caesarean section (a procedure when a child is cut from the womb to bypass the vagina, which is often associated with the Roman tyrant Julius Caesar). Musk argued vaginal birth limited the child's brain size. It's an argument he's made before. But there is no medical evidence supporting this idea. St Clair also says Musk told her she should have as many as 10 of his children. And that she should embrace the role of mother and move into his Austin estate. Shivon Zilis - an executive at one of Musk's companies, Neuralink, is already in the 1.3 square kilometre compound. She has given Musk three children. Canadian author Justine Wilson is said to be moving in soon. She was Musk's first wife. Their first child, Nevada, died of sudden infant death syndrome. But they went on to have five more children through in vitro fertilisation. Musician Claire 'Grimes' Boucher has borne the billionaire one child and provided the eggs for two surrogate births. These are subject to a custody battle. Right-wing influencer St Clair says she declined the prospect of communal living, sparking the custody battle over Romulus. And these are just the mothers we know of. Musk has reportedly been messaging women, offering them the chance to have his children. Pro-Trump cryptocurrency campaigner Tiffany Fong told the WSJ she had never met Musk when he made the surprise proposition via social media. She says she mysteriously lost her following on his X platform after turning him down.
