Latest news with #US2
Sydney Morning Herald
16 hours ago
- Business
- Sydney Morning Herald
Australia quietly pays US another $800 million for AUKUS despite review
Washington: Australia has quietly paid the United States another $800 million towards the AUKUS submarine deal, taking the total to $1.6 billion, despite the Trump administration placing the agreement under a review. This masthead confirmed the second payment was made in the second quarter of this year, per the agreed schedule. By the end of 2025, Canberra will have paid $US2 billion, or just over $3 billion, to the American shipbuilding industry to boost submarine production. A Defence Department spokesperson said Australia had been clear since March 2023 that it would make a 'proportionate contribution' to the American industrial base under the AUKUS agreement. 'Australia's contribution is about accelerating US production rates and maintenance to enable the delivery of Australia's future Virginia class submarines,' the spokesperson said. 'The payments are occurring in line with Australia's commitment to contribute US$2 billion by the end of 2025, which underscores our commitment to the successful delivery of AUKUS Pillar I outcomes.' The government was unfazed by the Pentagon's review of the AUKUS agreement and said it was natural that a new US administration would want to examine the progress of key initiatives. 'All three countries are continuing to progress the AUKUS pathway at pace, ensuring it meets national and trilateral objectives,' the Defence spokesperson said. While Australia's first $800 million payment was announced with fanfare in February, when Defence Minister Richard Marles met his US counterpart, Pete Hegseth, in Washington, the second payment was not announced.
The Age
16 hours ago
- Business
- The Age
Australia quietly pays US another $800 million for AUKUS despite review
Washington: Australia has quietly paid the United States another $800 million towards the AUKUS submarine deal, taking the total to $1.6 billion, despite the Trump administration placing the agreement under a review. This masthead confirmed the second payment was made in the second quarter of this year, per the agreed schedule. By the end of 2025, Canberra will have paid $US2 billion, or just over $3 billion, to the American shipbuilding industry to boost submarine production. A Defence Department spokesperson said Australia had been clear since March 2023 that it would make a 'proportionate contribution' to the American industrial base under the AUKUS agreement. 'Australia's contribution is about accelerating US production rates and maintenance to enable the delivery of Australia's future Virginia class submarines,' the spokesperson said. 'The payments are occurring in line with Australia's commitment to contribute US$2 billion by the end of 2025, which underscores our commitment to the successful delivery of AUKUS Pillar I outcomes.' The government was unfazed by the Pentagon's review of the AUKUS agreement and said it was natural that a new US administration would want to examine the progress of key initiatives. 'All three countries are continuing to progress the AUKUS pathway at pace, ensuring it meets national and trilateral objectives,' the Defence spokesperson said. While Australia's first $800 million payment was announced with fanfare in February, when Defence Minister Richard Marles met his US counterpart, Pete Hegseth, in Washington, the second payment was not announced.
Otago Daily Times
17 hours ago
- Automotive
- Otago Daily Times
Trump strikes trade deal with Japan to cut tariffs
The United States and Japan struck a deal to lower the hefty tariffs President Donald Trump threatened to impose on goods from its Asian ally that included a $US550 billion ($NZ915b) package of US-bound investment and loans from Tokyo. The agreement will bring immediate relief to Japan's critical autos sector with existing tariffs cut to 15% from 25%, and proposed levies on other Japanese goods that were set to come in on August 1 also cut by the same amount. Autos make up more than a quarter of all Japan's exports to the United States. "I just signed the largest TRADE DEAL in history with Japan," Trump said on his Truth Social platform. "This is a very exciting time for the United States of America, and especially for the fact that we will continue to always have a great relationship with the Country of Japan," he added. Japanese Prime Minister Shigeru Ishiba, who local media reported will soon resign after a bruising election defeat on Sunday, hailed the deal as "the lowest figure among countries that have a trade surplus with the US." The US investment package includes loans and guarantees from Japanese government-affiliated institutions of up to $550 billion to enable Japanese firms "to build resilient supply chains in key sectors like pharmaceuticals and semiconductors," Ishiba said. Japan will also increase purchases of agricultural products such as US rice, a Trump administration official said. Ishiba said the share of US rice imports may increase under its existing framework but that the agreement would "not sacrifice Japanese agriculture." The announcement ignited a rally in Japanese stocks, with the benchmark Nikkei climbing 2.6% to its highest in a year. Shares of automakers surged in particular, with Toyota up more than 11%, and Honda and Nissan both up more than 8%. The exuberance extended to shares of South Korean carmakers as well, as the Japan deal stoked optimism that South Korea could strike a comparable deal. The yen firmed slightly against the dollar, while European and US equity index futures edged upward. But US automakers signalled their unhappiness with the deal, raising concerns about a trade regime that could cut tariffs on auto imports from Japan to 15% while leaving tariffs on imports from Canada and Mexico at 25%. "Any deal that charges a lower tariff for Japanese imports with virtually no US content than the tariff imposed on North American-built vehicles with high US content is a bad deal for US industry and US auto workers," said Matt Blunt, who heads the American Automotive Policy Council which represents General Motors N and Chrysler parent Stellantis. 'MISSION COMPLETE' Autos are a huge part of US-Japan trade, but almost all of it is one way to the US from Japan, a fact that has long irked Trump. In 2024, the US imported more than $US55 billion of vehicles and automotive parts while just over $US2 billion were sold into the Japanese market from the US. Two-way trade between the two countries totalled nearly $US230 billion in 2024, with Japan running a trade surplus of nearly $US70 billion. Japan is the fifth-largest US trading partner in goods, US Census Bureau data show. Trump's announcement followed a meeting with Japan's top tariff negotiator, Ryosei Akazawa, at the White House on Tuesday. "#Mission Complete," Akazawa wrote on X, later saying the deal did not include Japanese exports of steel and aluminum that are subject to a 50% tariff, nor any agreement on defence budgets. The deal was "a better outcome" for Japan than it potentially could have been, given Trump's earlier unilateral tariff threats, said Kristina Clifton, a senior economist at the Commonwealth Bank of Australia in Sydney. Kazutaka Maeda, an economist at Meiji Yasuda Research Institute, said that "with the 15% tariff rate, I expect the Japanese economy to avoid recession." Japan is the largest investor in the United States. Together with pension giant GPIF and Japanese insurers, the country has about $US2 trillion invested in US markets. Besides that, Bank of Japan data shows direct Japanese investment in the United States was $US1.2 trillion at the end of 2024, and Japanese direct investment flows amounted to $US137 billion in North America last year. Speaking later at the White House, Trump also expressed fresh optimism that Japan would form a joint venture with Washington to support a gas pipeline in Alaska long sought by his administration. "We concluded the one deal ... and now we're going to conclude another one because they're forming a joint venture with us at, in Alaska, as you know, for the LNG," Trump told lawmakers at the White House. "They're all set to make that deal now." Trump aides are feverishly working to close trade deals ahead of an August 1 deadline that Trump has repeatedly pushed back under pressure from markets and intense lobbying by industry. By that date, countries are set to face steep new tariffs beyond those Trump has already imposed since taking office in January. Trump has announced framework agreements with Britain, Vietnam, Indonesia and paused a tit-for-tat tariff battle with China, though details are still to be worked out with all of those countries. At the White House, Trump said negotiators from the European Union would be in Washington on Wednesday.
Sydney Morning Herald
3 days ago
- Business
- Sydney Morning Herald
Warren Buffett has set alarm bells ringing on Wall Street
Wall Street banks are coining it in Donald Trump's America. Goldman Sachs last week reported a 22 per cent jump in profits, driven by record trading revenues as tariffs roiled stock markets. Citigroup's profits jumped by 25 per cent, beating analysts' expectations. The KBW Nasdaq Bank Index is close to an all-time high. But not everyone is convinced that the good times are going to last. Warren Buffett, the so-called Sage of Omaha, has been shedding his US bank holdings. At the start of the year, Buffett's Berkshire Hathaway sold about $US3.2 billion ($4.9 billion) of shares in American banks and financial companies. Buffett sold about a $US1 billion stake in Citigroup, ditched shares worth more than $US2 billion in Bank of America and dropped some of its holdings in Capital One. Loading 'Berkshire has clearly been reducing its exposure to US bank stocks,' Larry Cunningham, director of the John L. Weinberg Center for Corporate Governance at the University of Delaware, says. 'That activity signals a cautious or even bearish outlook on banking.' Moves of this size are not unusual for Berkshire Hathaway. But Buffett, arguably the most successful investor of all time, has a reputation for being preternaturally gifted at foreseeing market trends.
The Age
3 days ago
- Business
- The Age
Warren Buffett has set alarm bells ringing on Wall Street
Wall Street banks are coining it in Donald Trump's America. Goldman Sachs last week reported a 22 per cent jump in profits, driven by record trading revenues as tariffs roiled stock markets. Citigroup's profits jumped by 25 per cent, beating analysts' expectations. The KBW Nasdaq Bank Index is close to an all-time high. But not everyone is convinced that the good times are going to last. Warren Buffett, the so-called Sage of Omaha, has been shedding his US bank holdings. At the start of the year, Buffett's Berkshire Hathaway sold about $US3.2 billion ($4.9 billion) of shares in American banks and financial companies. Buffett sold about a $US1 billion stake in Citigroup, ditched shares worth more than $US2 billion in Bank of America and dropped some of its holdings in Capital One. Loading 'Berkshire has clearly been reducing its exposure to US bank stocks,' Larry Cunningham, director of the John L. Weinberg Center for Corporate Governance at the University of Delaware, says. 'That activity signals a cautious or even bearish outlook on banking.' Moves of this size are not unusual for Berkshire Hathaway. But Buffett, arguably the most successful investor of all time, has a reputation for being preternaturally gifted at foreseeing market trends.
