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Yahoo
5 days ago
- Business
- Yahoo
Trump tariff promises have a familiar refrain: deals in the 'not-too-distant future'
Another week in Washington has seen more promises from the Trump administration of imminent trade deals, with a fresh suggestion Monday of a possible pact with India "in the not-to-distant future." But the sheer volume of these claims — even as progress is evident in some cases — has dampened the reaction from markets and trade watchers after months of similar promises from both President Trump and his team have turned out to be premature at the very least. It was nearly seven weeks ago that Trump commented on the talks ahead, suggesting "over the next three or four weeks I think maybe the whole thing could be concluded." It was one many such promises, perhaps most notoriously a boast from trade adviser Peter Navarro on NBC in April that "we've got 90 deals in 90 days possibly pending here." So far, only one limited deal has been announced in the more than 50 days since Navarro's comment as promises have come at a more steady pace than has evidence of progress. The talks have seen some steps forward such as that pact with the U.K. on some goods and a slashing of tariffs on China for 90 days but also with plenty of backsliding. Just this week, renewed China tensions have raised the stakes for a coming call between Trump and Chinese President Xi Jinping and led to an apparent slowing of other talks as well. "There's a real problem, which is that there are in fact no genuine deals to be had," said Paul Krugman in a Yahoo Finance Live appearance Tuesday. The Nobel Laureate in economics and longtime Trump critic noted that many other countries have lower tariff rates and therefore the real question is "whether other countries can and will devise face saving stuff that Trump can call a victory and lead him to basically call off the dogs." Krugman is skeptical, saying the attention to the notion of a "TACO trade" — which suggests Trump often chickens out on tariffs — could make it harder for the president to walk back yet another tariff promise. Meanwhile, Trump's team often argues that the path of trade talks so far has essentially been part of the plan suggesting that deals will soon line up and that Trump will "dictate" tariffs if not. White House Press Secretary Karoline Leavitt said Monday that Trump's varied threats have brought negotiators such as Europe to the table and that the administration remains "hopeful and optimistic" it can reach deals soon. A key deal promiser in recent days — even as his colleagues have been more circumspect — is Commerce Secretary Howard Lutnick. On Fox News Sunday, he promised "everybody's talking to us you're going to see over the next couple of weeks really first class deals for the American worker," followed by a speech Monday declaring "you should expect a deal between the United States and India in the not-to-distant future." There are indeed positive signs, with India's chief negotiator reportedly saying at an event in New Delhi last week that "we are progressing well." But India has been at the front of the line for a trade deal for months, and it remains unclear if those talks will conclude before a July 8 deadline when Trump says "reciprocal" tariffs will be implemented. Progress is even less evident elsewhere, especially in the on-again off-again talks with China and Europe where negotiations have been upended by threats from the White House and hopes for any sort of wide-ranging deal before next month's deadline are dim. Trump's surprise promise Friday to increase existing tariffs on steel imports to 50% from 25% appears to have become a new snag to the European talks. The European Commission handles trade matters for the bloc and quickly slammed the idea to reporters and promised additional countermeasures if Trump follows through. Other nations previously seen as potential quick wins have seen progress slow or stall. "Some of those [talks] are moving along very well, especially with the Asian countries," Treasury Secretary Scott Bessent told ABC in April. South Korea was often promised to be at the front of the line but has seen talks paused due to an election this month. And a Reuters report Tuesday documented new troubles in the ongoing talks with Vietnam. Another Reuters report this week suggested that the Trump administration is trying to bring its talks to a head, with a letter prodding nations to provide their best offer on trade negotiations by this Wednesday. But few are sanguine that the slow progress can quickly pick up in the coming weeks. A note to clients from Signum Global Advisors Tuesday offered a way for investors to view the coming month. An optimistic scenario sees limited trade deal frameworks announced in the coming weeks, which would allow Trump to push the coming July 8 deadline and delay tariffs further. A pessimistic scenario sees many of the talks continuing to be fruitless, meaning "Trump loses patience" and leads to a new round of tariffs and market shocks this summer. The note adds that the pessimistic scenario is their base-case. Ben Werschkul is a Washington correspondent for Yahoo Finance. Click here for political news related to business and money policies that will shape tomorrow's stock prices Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
Two laws that Trump could use to re-impose his tariffs (and why he might do them both)
President Trump's trade plans ran into a stumbling block this week when a court blocked a wide swath of his tariffs. But he could bounce back quickly even if White House plans to appeal the defeat don't pan out. That's because Congress has been handing its tariff powers over to the executive branch for decades, with an array of other authorities at the ready — especially from two laws passed in 1962 and 1974 — if Trump needs to reimplement things like his "Liberation Day" tariffs by different means. "It's a setback [but] it doesn't mean that the president can't find other means or authorities to try to implement this policies, and it's also just the first step in litigation," notes Greta Peisch, a former Biden administration trade general counsel now at law firm Wiley Rein, in a Yahoo Finance Live appearance Thursday morning. Wednesday's decision from the United States Court of International Trade even pointed out that other laws essentially give the president the authority to act in a similar manner even as it struck down Trump's actions so far that it said "exceed any authority granted to the President." What this week's decision called into question is Trump's authority under a 1977 law called the International Emergency Economic Powers Act (IEEPA). But two alternatives quickly emerged among trade experts if the court ruling stands, with Trump showing no signs of backing away from his tariff ambitions. The most prominent quick strike option is so-called balance-of-payments authority derived from section 122 of the Trade Act of 1974. That power could allow Trump to move quickly but with a 150-day limit on how long any tariffs can be in place. The second route is a possible renewed focus on sectoral duties such as "section 301" or "section 232" tariffs. These long-established tariff authorities (one derived from that Trade Act of 1974 and another from a separate Trade Expansion Act of 1962) are ones Trump has used in the past but with the downside from his perspective that they can take time to implement. Perhaps the most intriguing scenario is one that sees the president move on both fronts to try and quickly put in place a short term patch followed by a permanent fix. Either way, Trump has offered signs in recent days that he is more focused on sector-specific tariffs at the moment, and that he has no intention of backing down from trade threats. In comments on Sunday, Trump said he cared if tariffs helped the US produce things like military equipment and semiconductors but "we're not looking to make sneakers and t-shirts." Then on Wednesday before the ruling, Trump reacted angrily to the notion that he has "chickened out" on tariff plans, saying even the suggestion he has backed down is "the nastiest question." The balance-of-payments authority is a likely immediate term option for Trump if he wants to act quickly. But the limitations of that choice "are clear," Henrietta Treyz of Veda Partners said in a note. That's because this authority allows the president to have new tariffs in place within days but only up to a 15 percent rate and only for a 150-day span unless Congress extends it. These types of duties have been discussed in Trump's circle for years but took a backseat to IEEPA when he came into office this year. The second options are more legally established and more permanent but slower. These are tariff authorities — most prominently via the national security focused section 232 of the Trade Expansion Act of 1962 — where Trump can act unilaterally but with the administration required to jump through time-consuming hoops like investigations and soliciting of public comment before the tariffs can go into place. But the upside for Trump here is that these are well-tested legal authorities that have even been used in recent months on goods like steel, aluminum, and cars. The White House is currently in the process of conducting additional investigations around goods like pharmaceuticals and semiconductors, with that process likely to give Trump new options by this summer. A similar tariff authority, but one premised on economic security, is section 301 of the Trade Act of 1974 which also includes the requirement for an investigation before implementation. Section 301 — it's worth noting — is the authority that Trump relied on in his first term to implement an array of tariffs on good from China. It's a legal landscape that could add up, Goldman Sachs warned in a note, to a situation which sees "increases uncertainty but might not change the final outcome for most major US trading partners." That's in part because one scenario outlined in the note even sees Trump rely on both authorities in sequence. First the president could invoke that balance-of-payments authority to quickly keep tariffs in place before he then launches sector-specific investigations to eventually make them permanent. Peisch also sees a good chance of a multi-step process ahead, with the administration pursuing all avenues including litigation but with the quick strike balance-of-payments authority front of mind as an option "in the short term." Other options at the president's disposal are seen as less likely at the moment but remain on the table. The Trade Act of 1974 also has a section 201 that gives the president other tariff authorities. Reaching even further back in US history, the Trade Act of 1930 allows the President to impose tariffs, which Goldman notes has never been used and bears similarities to section 301 authority "but does not require a formal investigation." The recently advanced 'big beautiful bill' could give Trump yet another tool, with changes to section 899 of the IRS code aimed at tightening restrictions on "discriminatory foreign countries" and giving the president the power to levy new taxes to combat these practices. As for now, Wednesday's ruling gives the administration 10 days to halt tariff collection, with the administration quickly filing two legal notices to state that it planned to appeal the decision and to ask for a pause the enforcement of the court's order. The administration also indicated in a court filing Thursday it may ask the Supreme Court to hear the case as soon as this week. The White House remains focused on keeping tariffs in place no matter what, with spokesman Kush Desai telling Yahoo Finance in a statement "President Trump pledged to put America First, and the Administration is committed to using every lever of executive power to address this crisis and restore American Greatness." Ben Werschkul is a Washington correspondent for Yahoo Finance. Click here for political news related to business and money policies that will shape tomorrow's stock prices
Yahoo
29-05-2025
- Business
- Yahoo
Two laws that Trump could use to re-impose his tariffs (and why he might do them both)
President Trump's trade plans ran into a stumbling block this week when a court blocked a wide swath of his tariffs. But he could bounce back quickly even if White House plans to appeal the defeat don't pan out. That's because Congress has been handing its tariff powers over to the executive branch for decades, with an array of other authorities at the ready — especially from two laws passed in 1962 and 1974 — if Trump needs to reimplement things like his "Liberation Day" tariffs by different means. "It's a setback [but] it doesn't mean that the president can't find other means or authorities to try to implement this policies, and it's also just the first step in litigation," notes Greta Peisch, a former Biden administration trade general counsel now at law firm Wiley Rein, in a Yahoo Finance Live appearance Thursday morning. Wednesday's decision from the United States Court of International Trade even pointed out that other laws essentially give the president the authority to act in a similar manner even as it struck down Trump's actions so far that it said "exceed any authority granted to the President." What this week's decision called into question is Trump's authority under a 1977 law called the International Emergency Economic Powers Act (IEEPA). But two alternatives quickly emerged among trade experts if the court ruling stands, with Trump showing no signs of backing away from his tariff ambitions. The most prominent quick strike option is so-called balance-of-payments authority derived from section 122 of the Trade Act of 1974. That power could allow Trump to move quickly but with a 150-day limit on how long any tariffs can be in place. The second route is a possible renewed focus on sectoral duties such as "section 301" or "section 232" tariffs. These long-established tariff authorities (one derived from that Trade Act of 1974 and another from a separate Trade Expansion Act of 1962) are ones Trump has used in the past but with the downside from his perspective that they can take time to implement. Perhaps the most intriguing scenario is one that sees the president move on both fronts to try and quickly put in place a short term patch followed by a permanent fix. Either way, Trump has offered signs in recent days that he is more focused on sector-specific tariffs at the moment, and that he has no intention of backing down from trade threats. In comments on Sunday, Trump said he cared if tariffs helped the US produce things like military equipment and semiconductors but "we're not looking to make sneakers and t-shirts." Then on Wednesday before the ruling, Trump reacted angrily to the notion that he has "chickened out" on tariff plans, saying even the suggestion he has backed down is "the nastiest question." The balance-of-payments authority is a likely immediate term option for Trump if he wants to act quickly. But the limitations of that choice "are clear," Henrietta Treyz of Veda Partners said in a note. That's because this authority allows the president to have new tariffs in place within days but only up to a 15 percent rate and only for a 150-day span unless Congress extends it. These types of duties have been discussed in Trump's circle for years but took a backseat to IEEPA when he came into office this year. The second options are more legally established and more permanent but slower. These are tariff authorities — most prominently via the national security focused section 232 of the Trade Expansion Act of 1962 — where Trump can act unilaterally but with the administration required to jump through time-consuming hoops like investigations and soliciting of public comment before the tariffs can go into place. But the upside for Trump here is that these are well-tested legal authorities that have even been used in recent months on goods like steel, aluminum, and cars. The White House is currently in the process of conducting additional investigations around goods like pharmaceuticals and semiconductors, with that process likely to give Trump new options by this summer. A similar tariff authority, but one premised on economic security, is section 301 of the Trade Act of 1974 which also includes the requirement for an investigation before implementation. Section 301 — it's worth noting — is the authority that Trump relied on in his first term to implement an array of tariffs on good from China. It's a legal landscape that could add up, Goldman Sachs warned in a note, to a situation which sees "increases uncertainty but might not change the final outcome for most major US trading partners." That's in part because one scenario outlined in the note even sees Trump rely on both authorities in sequence. First the president could invoke that balance-of-payments authority to quickly keep tariffs in place before he then launches sector-specific investigations to eventually make them permanent. Peisch also sees a good chance of a multi-step process ahead, with the administration pursuing all avenues including litigation but with the quick strike balance-of-payments authority front of mind as an option "in the short term." Other options at the president's disposal are seen as less likely at the moment but remain on the table. The Trade Act of 1974 also has a section 201 that gives the president other tariff authorities. Reaching even further back in US history, the Trade Act of 1930 allows the President to impose tariffs, which Goldman notes has never been used and bears similarities to section 301 authority "but does not require a formal investigation." The recently advanced 'big beautiful bill' could give Trump yet another tool, with changes to section 899 of the IRS code aimed at tightening restrictions on "discriminatory foreign countries" and giving the president the power to levy new taxes to combat these practices. As for now, Wednesday's ruling gives the administration 10 days to halt tariff collection, with the administration quickly filing two legal notices to state that it planned to appeal the decision and to ask for a pause the enforcement of the court's order. The administration also indicated in a court filing Thursday it may ask the Supreme Court to hear the case as soon as this week. The White House remains focused on keeping tariffs in place no matter what, with spokesman Kush Desai telling Yahoo Finance in a statement "President Trump pledged to put America First, and the Administration is committed to using every lever of executive power to address this crisis and restore American Greatness." Ben Werschkul is a Washington correspondent for Yahoo Finance. Click here for political news related to business and money policies that will shape tomorrow's stock prices Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Trump announces his first trade deal with the UK. Here's what's in it.
President Trump announced his first deal since launching a global trade war Thursday, unveiling a limited pact with the United Kingdom that would lower barriers on some goods like automobiles and agriculture while leaving many unanswered questions. It's a "tremendous trade deal for both countries," Trump said Thursday in the Oval Office. "This is a fantastic, historic day," added UK Prime Minister Keir Starmer who joined the event over the phone. "The final details are being written up" and will be concluded in the coming weeks, Trump added. One key change not in the offing is any adjustment to the 10% baseline tariffs that Trump imposed on nearly every country in the world. Those are set to stay in place in this deal. The core of the targeted deal is essentially a trade where the UK will get a lowering of duties on key sectors such as steel — US duties there on UK-made steel will drop from 25% to 0%. Car export tariffs are also set be reduced from 27.5% to 10%, according to a release from the UK. Trump and his aides also summarizing the pact as allowing the UK to send 100,000 cars to the US with only a 10% tariff. "We started at 10% and we ended at 10%," noted Commerce Secretary Howard Lutnick during the event. Yet the unanswered questions were abundant. In one example, Trump focused heavily on US beef exports in his opening remarks but then seemed to indicated that the UK wouldn't be changing the beef standards that have been a far bigger hangup to trade than other issues like tariffs. "I think they'll take what they want," Trump said of beef exports. In return, Prime Minister Starmer is offering unspecified so far concessions on so-called digital service taxes that hit US tech companies as well as promises to open the UK markets more to things like US autos, ethanol, machinery, and agricultural products. The deal also includes provisions, Trump said, around the fast tracking of exports as well as new economic security measure tied to national security. Secretary Lutnick added it is also set to include new purchases of airport engines by Boeing. The digital elements of the pact came in for immediate praise with Tony Gulotta, a principal and business tax firm Ryan, touting the concessions on the UK's Digital Services Tax by saying 'this represents a win-win for both countries — removing a significant burden for American tech companies operating in the UK market while strengthening the overall trade relationship." The announcement was also enough to push US stocks higher on Thursday as investors turned optimistic that Trump's trade war may be easing. Read more: What Trump's tariffs mean for the economy and your wallet But others were more cautious about the import of the announcement. 'I think it is going to be underwhelming as an opening salvo' predicted Henrietta Treyz of Veda Partners during a Yahoo Finance Live appearance. She noted it was good for groups like UK auto makers but said 'there are much bigger pieces of this pie,' pointing to still outstanding deals on partners like South Korea, Japan, Canada, Mexico and India where deals there could be weeks or months away. Overall, the UK has been spared the most intensive actions from Trump. A recent Yale Budget Lab report found that the UK economy is likely to be 0.2% bigger in the long run as a result of tariffs imposed so far while other nations like Canada and China are set to take a hit and turn negative. Today's announcement could be the second trade win for Starmer after he inked a new trade agreement with India earlier this week. Other reaction to the announcement from some in the financial community was skepticism about how far-reaching any agreement might be. Dan Ives of Wedbush called the announcement "a baby step start of getting some deals/framework on the table," adding that 'the reality is that the market and especially tech investors will view this announcement as a yawner ... with the laser focus being China negotiations, India, and Vietnam.' Terry Haines of Pangaea Policy added that, for markets, "the existence of today's deal matters more than any detail, because it confirms for jittery and impatient markets fundamental things" most importantly that Trump will move forward on deals. Indeed, markets will have another round of trade talks to watch this weekend when two top Trump aides travel to Switzerland to begin those talks with China. Trump also looked ahead to this weekend's China talks predicting "I think we will have a very good weekend" and offered optimism that progress would be possible there in the days ahead and of tariffs if those talks go well "you can't get any higher so you know it's coming down." Ben Werschkul is a Washington correspondent for Yahoo Finance. Click here for political news related to business and money policies that will shape tomorrow's stock prices
Yahoo
23-04-2025
- Automotive
- Yahoo
Elon Musk finally acknowledged what must be done to rescue Tesla
You can catch Opening Bid on Apple Podcasts, Spotify, YouTube, or wherever you get your podcasts. Elon Musk wasted no time on Tesla's (TSLA) earnings call late Tuesday acknowledging the EV maker's biggest roadblock to sunnier financial days. That is his outsized time being spent at President Trump's controversial DOGE master. And he finally clearly articulated what must be done to jumpstart an automaker that saw sales and profits fall off a cliff in the first quarter. 'Starting early next month, in May, my time allocation to DOGE will drop considerably," Musk said on the call. The path to renewed sales and profit growth won't be easy, however. The Tesla brand will likely continue to feel blowback from Musk's outspokenness on government policies. At the same time, tariff policy stands to hammer margins given Tesla's exposure to solar panels from China and autos being made outside the US. The uncertainty on how quickly Musk can fix Tesla is something execs pointed to on the earnings release — Tesla yanked its 2025 financial guidance, promising to revisit it when second quarter results hit. Let's throw a minute on that shot clock here. Got to start with Tesla, stock of the day. Yet again, shares are getting a pop here as Elon Musk hopped on that earnings call, which I hope you listened to on Yahoo Finance Live because you could now do that. We could watch earnings calls on Yahoo Finance. I listened to it on our platform. It was killer. So Elon Musk hops on this earnings call after sales dropped, uh, 9%, profits down 71%, said he's starting quote, "Starting in May, my time allocation to Doge will drop considerably." Market is reading that is that Elon Musk will be back more engaged than ever before. Things will get great. Eh, let me just level set here. Three things. I see three challenges, uh, Musk is going to face very, very soon or as soon as he gets more engaged back in this business. First up, solar, uh, Tesla talked a lot about this on the earnings call where it gets its solar panels from, it will be impacted by tariffs. That is a big challenge. Challenge number two, Elon has to improve demand. Sales have fallen off a cliff because in many respects what he has done with Doge and how outspoken he has been on X, that does not change overnight, especially when average selling prices for Teslas are declining. And then last but not least, uh, the company's expenses continue to rise faster than sales. They were up 9% in the most recent quarter as the company invests aggressively in AI. That will not change overnight. Tesla continues to invest a lot in AI. So I'm not sure what Musk will have to do about that, but again, a lot of optimism on the returning Elon Musk. And I am totally over, uh, over my time. No surprise, because I just completely ignore the shot clock every single time. For full episodes of Opening Bid, listen on your favorite podcast platform or watch on our website. Yahoo Finance's Opening Bid is produced by Langston Sessoms Sign in to access your portfolio
