Latest news with #USNationalEconomicCouncil
Time of India
3 days ago
- Business
- Time of India
Donald Trump-Xi Jinping call likely to take place this week amid fresh trade tensions, White House confirms
US President Donald Trump and Chinese President Xi Jinping are expected to speak this week amid renewed trade tensions. Trump has accused China of violating a temporary tariff agreement made in Geneva last month. While US officials claim Beijing is dragging its feet, China has firmly rejected the allegations, criticising the US for discriminatory trade practices. The situation has unsettled global markets. The expected high-level call is seen as a crucial moment in the strained economic relationship between the world's two biggest economies. Tired of too many ads? Remove Ads Washington accuses Beijing of backtracking on Geneva agreement Tired of too many ads? Remove Ads Trump alleges deal violation, China fires back Tired of too many ads? Remove Ads Global markets react, stakes remain high US President Donald Trump and China's President Xi Jinping are expected to speak this week, according to the White House . The announcement comes as trade tensions resurface, with Trump accusing China of breaking a recent tariff rollback to reporters on Monday outside the West Wing, White House Press Secretary Karoline Leavitt said, 'I can confirm that the two leaders will likely talk this week.' She added, 'And as always, when foreign leaders call, we will provide a readout of those calls.'The call, if it happens, will be their first confirmed contact since Trump returned to office over five months ago. Despite earlier claims from Trump that a conversation had taken place, Beijing has denied any recent US National Economic Council Director Kevin Hassett had also signalled that a call was expected this week, though no date was White House's push for dialogue follows a renewed escalation in US-China trade tensions. Last month, senior officials from both nations met in Geneva and agreed to suspend high tariffs for 90 days. The agreement was seen as a temporary truce in a prolonged trade Secretary Scott Bessent said after the talks, 'We made substantial progress between the United States and China in the very important trade talks.' He noted the role of the Swiss hosts and confirmed President Trump had been Jamieson Greer, the US Trade Representative, said the agreement came together faster than expected. 'This was, as the Secretary pointed out, a very constructive two days,' Greer said. 'It's important to understand how quickly we were able to come to an agreement, which reflects that perhaps the differences were not so large as maybe thought.'Greer added that the deal was part of efforts to address a USD 1.2 trillion trade deficit. 'Just remember why we're here in the first place -- the United States has a massive USD 1.2 trillion trade deficit, so the President declared a national emergency and imposed tariffs,' he these early signs of progress, the situation changed sharply last week. Trump accused China of breaching the deal, without specifying how. Writing on Truth Social, he said:'Two weeks ago, China was in grave economic danger! The very high Tariffs I set made it virtually impossible for China to TRADE into the United States marketplace, which is, by far, the number one in the World... I made a FAST DEAL with China in order to save them from what I thought was going to be a very bad situation... The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY.'Commerce Secretary Howard Lutnick echoed this view during an appearance on Fox News Sunday, claiming that China was 'slow-rolling' the however, has dismissed these accusations. On Monday, the Chinese Commerce Ministry said the US had 'made bogus charges and unreasonably accused China of violating the consensus, which is seriously contrary to the facts.''China firmly rejects these unreasonable accusations,' the statement read. It added that China 'has been firm in safeguarding its rights and interests, and sincere in implementing the consensus.'The ministry also pointed to US restrictions on AI chip exports and visa bans for Chinese students as evidence of escalating 'discriminatory restrictive measures.'Markets responded swiftly to the rising uncertainty. Major indices slid on Monday as investors weighed the risk of a renewed tariff war between the two economic warning was clear. 'China will continue to resolutely take strong measures to uphold its legitimate rights and interests' if tensions a final appeal, China urged the US 'to meet China halfway, immediately correct its wrongful actions, and jointly uphold the consensus from the Geneva trade talks .'With both sides digging in and rhetoric intensifying, the expected Trump-Xi call could mark a critical moment—either to reset or deepen the divide.(With inputs from AFP, AP)
Yahoo
4 days ago
- Business
- Yahoo
US Dollar: This Week's Labor Data May Offer Support Despite Lingering Trade Fears
The US Dollar fell sharply below 99 amid rising geopolitical and trade tensions. Trump's tariff hike risks reigniting trade wars, raising doubts about the US-China trade truce. Key US economic data this week, especially Friday's nonfarm payrolls, will influence the dollar's path. Looking for actionable trade ideas to navigate the current market volatility? Subscribe here to unlock access to InvestingPro's AI-selected stock winners. The US Dollar started the week with a sharp drop, falling below the 99 level and testing last week's lows. Rising geopolitical tensions, stricter US trade policies, and a packed US economic data schedule have made investors more cautious. Although the dollar saw some small gains last week, it lost those gains quickly this week due to growing political and economic uncertainty. The pressure on the US Dollar is mainly due to President Donald Trump's announcement that tariffs on steel and aluminum imports will rise from 25% to 50% starting June 4. This decision has raised fears that trade wars could return, weakening investor confidence. The move also cast doubt on the temporary trade truce reached with China in Switzerland last month. Trump accused China of breaking the deal, but China strongly denied it. It is still unclear whether the two leaders will meet soon. Kevin Hassett, head of the US National Economic Council, said a meeting between Trump and Chinese President Xi Jinping could happen later this week. However, markets are treating this possibility with caution. Some analysts believe the US does not plan to remove tariffs completely, but the lack of clear direction is adding long-term uncertainty. The dollar index is also under pressure from concerns about slowing US growth. According to Morgan Stanley (NYSE:MS), the US economy may weaken by mid-next year, leading to expected interest rate cuts. The bank predicts the dollar index (DXY) could drop nearly 9% to around 91—a level last seen during the pandemic. The economic data scheduled for this week will be key to where the US dollar heads next. Today, markets will watch both the US ISM manufacturing PMI and manufacturing PMI data from the Eurozone. Speeches from Federal Reserve members will also be closely followed for any hints about future interest rate moves. On Wednesday, the ADP private sector employment report and the Fed's Beige Book will be released. On Thursday, the foreign trade balance and unemployment claims data will come out. The most important data point of the week will be the US nonfarm payrolls report on Friday. These reports could strongly influence the Fed's short-term policy decisions. Analysts expect job growth to slow, but the unemployment rate is likely to hold steady at 4.2%. If the data show the labor market remains strong, fears of a recession may ease, and the dollar could bounce back. On the other hand, weaker job numbers may add more pressure on the dollar. Tensions on the geopolitical front are adding to the pressure on the US dollar. Over the weekend, Ukraine carried out a large drone strike on Russian military sites, reportedly damaging nearly 40 bombers. This renewed conflict has pushed investors toward safer assets. How Russia will respond remains uncertain. Talks are expected to take place in Istanbul, but the latest attacks raise doubts about the success of any diplomatic progress. Meanwhile, markets are also watching the European Central Bank's meeting on Thursday. The ECB is expected to cut interest rates by 25 basis points. While this puts some pressure on the euro, the move may still support the euro against the dollar, given the political and economic uncertainty in the US. In short, the dollar index is currently weighed down by trade tensions and signs of economic weakness. Geopolitical risks, unclear Fed policy, and especially renewed friction between the US and China will shape its direction. Friday's nonfarm payrolls data will be one of the most important indicators this week. Although the US Dollar slowed its downward trend last week, the developments over the weekend put pressure on the index again. As the US Dollar lost its intermediate support at 99, it started to slide below the level where it has found support since April. The current trend may lead the US Dollar to test the 97.90 level once again this week. On a weekly close below this level, the index will return to the falling channel that originated in February. Thus, in the coming months, we may see that the downtrend may continue towards the 95 region and then towards the 92 level. However, the easing of trade tensions and the data releases this week that are supportive of the US economy may help the US Dollar to find support in the 98 region again. In upward moves, daily closes above 99.65 can be followed as a sign of recovery. Then, the index may be expected to move towards the 100-102 region. However, the current outlook suggests that the US Dollar may continue its downward trend rather than a recovery. *** Be sure to check out InvestingPro to stay in sync with the market trend and what it means for your trading. Whether you're a novice investor or a seasoned trader, leveraging InvestingPro can unlock a world of investment opportunities while minimizing risks amid the challenging market AI: AI-selected stock winners with a proven track record. InvestingPro Fair Value: Instantly find out if a stock is underpriced or overvalued. Advanced Stock Screener: Search for the best stocks based on hundreds of selected filters and criteria. Top Ideas: See what stocks billionaire investors such as Warren Buffett, Michael Burry, and George Soros are buying. This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk rests with the investor. We also do not provide any investment advisory services. Related articles US Dollar: This Week's Labor Data May Offer Support Despite Lingering Trade Fears US Dollar: Downside Risks Rise Amid Downbeat Economic Data Ahead of PCE This Week EUR/USD: Upside Momentum Builds as Rate Cut Delay Sparks Weakness in US Dollar Error in retrieving data Sign in to access your portfolio Error in retrieving data
Express Tribune
06-04-2025
- Business
- Express Tribune
Over 50 nations seek US trade talks amid tariff fallout: Trump adviser
Listen to article More than 50 countries have reached out to the White House to begin trade talks, a top economic adviser to US President Donald Trump said on Sunday as US officials sought to defend sweeping new tariffs that have unleashed global turmoil. During an interview on ABC News' 'This Week,' US National Economic Council Director Kevin Hassett denied that the tariffs were part of a strategy by Trump to crash financial markets to pressure the U.S. Federal Reserve to cut interest rates. He said there were would be no "political coercion" of the central bank. In a Truth Social post on Friday, Trump shared a video that suggested his tariffs aimed to hammer the stock market on purpose in a bid to force lower interest rates. In a separate interview on NBC News's Meet the Press, US Treasury Secretary Scott Bessent downplayed the stock market drop and said there was "no reason" to anticipate a recession based on the tariffs. Trump jolted economies around the world after he announced broad tariffs on US imports on Wednesday, triggering retaliatory levies from China and sparking fears of a globe trade war and recession. On Sunday morning talk shows, top Trump officials sought to portray the tariffs as a savvy repositioning of the US in the global trade order and the economic disruptions as a short-term fallout. US stocks have tumbled by around 10% in the two days since Trump announced a new global tariff regime that was more aggressive than analysts and investors had been anticipating. It is a drop that market analysts and large investors have blamed on Trump's aggressive push on tariffs, which most economists and the head of the US Federal Reserve believe risk stoking inflation and damaging economic growth. Tariff-stunned markets face another week of potential tariff turmoil, with fallout from Trump's sweeping import levies keeping investors on edge after the worst week for US stocks since the onset of the COVID-19 crisis five years ago. Hassett told ABC News' 'This Week' that Trump's tariffs had so far driven "more than 50" countries to contact the White House to begin trade talks. Taiwan's President Lai Ching-te on Sunday offered zero tariffs as the basis for talks with the US., pledging to remove trade barriers rather than imposing reciprocal measures and saying Taiwanese companies will raise their US investments. Unlike other economists, Hassett said he did not expect a big hit to consumers because exporters were likely to lower prices. Bessent told NBC News he did not anticipate a recession based on the tariffs, citing stronger-than-anticipated US jobs growth. "We could see from the jobs number on Friday, that was well above expectations, that we are moving forward, so I see no reason that we have to price in a recession," Bessent said.
Al Arabiya
06-04-2025
- Business
- Al Arabiya
Over 50 countries have contacted White House to start trade talks, Trump advisor says
More than 50 countries have reached out to the White House to begin trade talks, a top economic advisor to US President Donald Trump said on Sunday as US officials sought to defend sweeping new tariffs that have unleashed global turmoil. During an interview on ABC News' 'This Week,' US National Economic Council Director Kevin Hassett denied that the tariffs were part of a strategy by Trump to crash financial markets to pressure the US Federal Reserve to cut interest rates. He said there were would be no 'political coercion' of the central bank. In a Truth Social post on Friday, Trump shared a video that suggested his tariffs aimed to hammer the stock market on purpose in a bid to force lower interest rates. In a separate interview on NBC News' Meet the Press, US Treasury Secretary Scott Bessent downplayed the stock market drop and said there was 'no reason' to anticipate a recession based on the tariffs. Trump jolted economies around the world after he announced broad tariffs on US imports on Wednesday, triggering retaliatory levies from China and sparking fears of a globe trade war and recession. On Sunday morning talk shows, top Trump officials sought to portray the tariffs as a savvy repositioning of the US in the global trade order and the economic disruptions as a short-term fallout. US stocks have tumbled by around 10 percent in the two days since Trump announced a new global tariff regime that was more aggressive than analysts and investors had been anticipating. It is a drop that market analysts and large investors have blamed on Trump's aggressive push on tariffs, which most economists and the head of the US Federal Reserve believe risk stoking inflation and damaging economic growth. Tariff-stunned markets face another week of potential tariff turmoil, with fallout from Trump's sweeping import levies keeping investors on edge after the worst week for US stocks since the onset of the COVID-19 crisis five years ago. Hassett told ABC News' 'This Week' that Trump's tariffs had so far driven 'more than 50' countries to contact the White House to begin trade talks. Taiwan's President Lai Ching-te on Sunday offered zero tariffs as the basis for talks with the US, pledging to remove trade barriers rather than imposing reciprocal measures and saying Taiwanese companies will raise their US investments. Unlike other economists, Hassett said he did not expect a big hit to consumers because exporters were likely to lower prices. Bessent told NBC News he did not anticipate a recession based on the tariffs, citing stronger-than-anticipated US jobs growth. 'We could see from the jobs number on Friday, that was well above expectations, that we are moving forward, so I see no reason that we have to price in a recession,' Bessent said.
The Guardian
07-03-2025
- Business
- The Guardian
China imports hammered by trade war fears, as market selloff continues
Show key events only Please turn on JavaScript to use this feature Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy. The markets continue to be buffeted by fears of a global trade war, as Donald Trump vacillates over the imposition of tariffs on major US trading partners. Last night in New York, the S&P 500 index fell 1.8% to its lowest level since early November – the post-election Trump bump has well-and-truly vanished. Tech stock slid, pushing the Nasdaq index into a correction (more than 10% below its record high). Wall Street's fear index, the CBOE Volatility index, closed at its highest level since 18 December, showing investors are jittery. They may also be flummoxed, after Trump temporarily delayed tariffs on many goods from Canada and Mexico yesterday. Trump delays tariffs on many products from Mexico and Canada Despite that u-turn, 'the great unwind of US equity evolves and gathers momentum', says Chris Weston, analyst at brokerage Pepperstone. Weston explains: Confusion reigns around the Trump Administration policy agenda, and while we've seen yet another pause on Canadian and Mexican tariffs until 2 April, the lack of consistency to hold policy firm further limits the visibility US businesses have to position margins and to make strategic planning decisions. Trump detailed that he's 'not even looking at the stock market' … it's easy to be sceptical on that call, but Trump needs to portray control when putting through the hard policies. It's never a great sign when politicians start blaming malignant forces when the financial markets give their policies the thumbs down. But that was Trump's message yesterday; asked if his tariffs were scaring the markets, Trump replied: 'Well, a lot of them are globalist countries and companies that won't be doing as well. Because we're taking back things that have been taken from us many years ago.' European stock markets are expected to drop today, with the FTSE 100 index forecast to fall 0.55% or 48 points. Japan's Nikkei has fallen over 2% today, to its lowest level since last September. Investors are poised for the latest US jobs report. The consensus is that hiring picked up in February, lifting non-farm payrolls by around 160,000 last month. But yesterday, Larry Kudlow – former Director of the US National Economic Council turned Fox News host – suggested the NFP report could be flat, or even negative…. Kudlow: "Some very smart people are telling me that the February jobs number coming out Friday could be flat, even negative. The GDP tracker from the Atlanta Fed is showing for the first quarter a -2.5 or -2.8%. And we've had lousy numbers on things like housing and business… — Jeffrey Jonah (@JeffreyJonah5) March 6, 2025 The agenda 7am GMT: Halifax index of UK house prices in February 10am GMT: Eurozone GDP Q4 2024 (3rd estimate) 1.30pm GMT: US non-farm payroll for February Share Show key events only Please turn on JavaScript to use this feature China imports have fallen sharply at the start of this year, as the prospect of a trade war with the US hits its economy. Imports fell 8.4% year-on-year in January and February, new customs data shows, weaker than the 1% growth expected by economists. That suggests that China's manufacturing base could be cutting back on buying raw materials and parts, concerned that demand for their wares would fall due to new tariffs at the US border. Lynn Song, chief economist for Greater China at ING, says: China's economy got off to a weak start in 2025 as exports grew just 2.3% in the first two months of the year. A sharp slump in imports, meanwhile, resulted in a bigger-than-expected trade surplus. Looking into the detail of the import data, Song explains: We still saw strong imports in tech-related imports, with a 54.4% YoY ytd surge in automatic data processing equipment imports. And an overall 6.4% YoY ytd growth in hi-tech product imports. However, most other categories came in weak. Commodities imports generally contracted over the first two months of the year, with crude oil (-10.5%), natural gas (-13.8%), and steel (-7.9%) all still soft. We're already seeing a slump in soybean imports, which fell by -14.8% YoY ytd. This was even before the impacts of China's retaliatory tariffs on US agricultural products. China's exports rose, though, in the first two months of 2025 – up 2.3%. Exports to the US rose to almost $76bn, Bloomberg reports, the highest total for January and February since 2022 when the Covid-19 pandemic was upending global trade. US data yesterday showed that America's trade deficit swelled to a record high in January, as firms tried to front-run tariffs by importing more goods. Share Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy. The markets continue to be buffeted by fears of a global trade war, as Donald Trump vacillates over the imposition of tariffs on major US trading partners. Last night in New York, the S&P 500 index fell 1.8% to its lowest level since early November – the post-election Trump bump has well-and-truly vanished. Tech stock slid, pushing the Nasdaq index into a correction (more than 10% below its record high). Wall Street's fear index, the CBOE Volatility index, closed at its highest level since 18 December, showing investors are jittery. They may also be flummoxed, after Trump temporarily delayed tariffs on many goods from Canada and Mexico yesterday. Trump delays tariffs on many products from Mexico and Canada Despite that u-turn, 'the great unwind of US equity evolves and gathers momentum', says Chris Weston, analyst at brokerage Pepperstone. Weston explains: Confusion reigns around the Trump Administration policy agenda, and while we've seen yet another pause on Canadian and Mexican tariffs until 2 April, the lack of consistency to hold policy firm further limits the visibility US businesses have to position margins and to make strategic planning decisions. Trump detailed that he's 'not even looking at the stock market' … it's easy to be sceptical on that call, but Trump needs to portray control when putting through the hard policies. It's never a great sign when politicians start blaming malignant forces when the financial markets give their policies the thumbs down. But that was Trump's message yesterday; asked if his tariffs were scaring the markets, Trump replied: 'Well, a lot of them are globalist countries and companies that won't be doing as well. Because we're taking back things that have been taken from us many years ago.' European stock markets are expected to drop today, with the FTSE 100 index forecast to fall 0.55% or 48 points. Japan's Nikkei has fallen over 2% today, to its lowest level since last September. Investors are poised for the latest US jobs report. The consensus is that hiring picked up in February, lifting non-farm payrolls by around 160,000 last month. But yesterday, Larry Kudlow – former Director of the US National Economic Council turned Fox News host – suggested the NFP report could be flat, or even negative…. Kudlow: "Some very smart people are telling me that the February jobs number coming out Friday could be flat, even negative. The GDP tracker from the Atlanta Fed is showing for the first quarter a -2.5 or -2.8%. And we've had lousy numbers on things like housing and business… — Jeffrey Jonah (@JeffreyJonah5) March 6, 2025 The agenda 7am GMT: Halifax index of UK house prices in February 10am GMT: Eurozone GDP Q4 2024 (3rd estimate) 1.30pm GMT: US non-farm payroll for February Share
