Latest news with #import taxes
Washington Post
3 hours ago
- Business
- Washington Post
Leaders of Indonesia and Peru hold talks on trade and economic ties
JAKARTA, Indonesia — Peruvian President Dina Boluarte met his Indonesian counterpart Prabowo Subianto on Monday during a visit aimed at strengthening economic ties as the two countries for new markets amid geopolitical challenges and rising trade barriers. The signing came just four days after the U.S. President Donald Trump began imposing higher import taxes on dozens of countries on Thursday, including a 19% rate on Indonesia. Imports from Peru are paying the 10% baseline rate Trump set in April.
Yahoo
3 hours ago
- Business
- Yahoo
Leaders of Indonesia and Peru hold talks on trade and economic ties
JAKARTA, Indonesia (AP) — Peruvian President Dina Boluarte met his Indonesian counterpart Prabowo Subianto on Monday during a visit aimed at strengthening economic ties as the two countries for new markets amid geopolitical challenges and rising trade barriers. The signing came just four days after the U.S. President Donald Trump began imposing higher import taxes on dozens of countries on Thursday, including a 19% rate on Indonesia. Imports from Peru are paying the 10% baseline rate Trump set in April. Boluarte arrived in Indonesia's capital of Jakarta on Sunday afternoon, following an invitation President Prabowo extended when the two leaders met at the APEC Summit in Peru in November 2024. The two-day visit is aimed at deepening Peru's ties with Indonesia, Southeast Asia's largest economy, after the two nations concluded negotiations which began in May on a Comprehensive Economic Partnership Agreement or CEPA. Subianto hosted Boluarte with a ceremony at Merdeka palace in Jakarta before the two leaders lead a closed-door bilateral meeting. The two leaders are expected to witness the signing of CEPA that could be a major booster to bilateral trade, said Indonesia's trade minister Budi Santoso ahead of the visit. 'The CEPA deal with Peru is a potential gateway for Indonesian goods and services to enter markets in Central and South America,' Santoso said, 'We hope the deal can strengthen Indonesia's trade presence in the region.' His ministry's data showed the country's total trade with Peru went down from $554.2 million in 2022 to $444.4 million the following year, while Indonesia enjoyed a $290.4 million trade surplus in 2023, driven by major exports including vehicles, footwear and biodiesel. Indonesia is currently seeking membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which Peru is part of, to boost export growth. Niniek Karmini, The Associated Press 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
Associated Press
3 hours ago
- Business
- Associated Press
Leaders of Indonesia and Peru hold talks on trade and economic ties
JAKARTA, Indonesia (AP) — Peruvian President Dina Boluarte met his Indonesian counterpart Prabowo Subianto on Monday during a visit aimed at strengthening economic ties as the two countries for new markets amid geopolitical challenges and rising trade barriers. The signing came just four days after the U.S. President Donald Trump began imposing higher import taxes on dozens of countries on Thursday, including a 19% rate on Indonesia. Imports from Peru are paying the 10% baseline rate Trump set in April. Boluarte arrived in Indonesia's capital of Jakarta on Sunday afternoon, following an invitation President Prabowo extended when the two leaders met at the APEC Summit in Peru in November 2024. The two-day visit is aimed at deepening Peru's ties with Indonesia, Southeast Asia's largest economy, after the two nations concluded negotiations which began in May on a Comprehensive Economic Partnership Agreement or CEPA. Subianto hosted Boluarte with a ceremony at Merdeka palace in Jakarta before the two leaders lead a closed-door bilateral meeting. The two leaders are expected to witness the signing of CEPA that could be a major booster to bilateral trade, said Indonesia's trade minister Budi Santoso ahead of the visit. 'The CEPA deal with Peru is a potential gateway for Indonesian goods and services to enter markets in Central and South America,' Santoso said, 'We hope the deal can strengthen Indonesia's trade presence in the region.' His ministry's data showed the country's total trade with Peru went down from $554.2 million in 2022 to $444.4 million the following year, while Indonesia enjoyed a $290.4 million trade surplus in 2023, driven by major exports including vehicles, footwear and biodiesel. Indonesia is currently seeking membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which Peru is part of, to boost export growth.
Yahoo
4 days ago
- Business
- Yahoo
Confusion Over Tariff Stacking Hampers Japan's Bid to Pin Down US Trade Deal
(Bloomberg) -- The US has imposed higher tariffs than Japan expected on a broad range of its goods, a senior Japanese ruling party official said Thursday, after a day of confusion over what exactly had been agreed between the two countries. All Hail the Humble Speed Hump Mayor Asked to Explain $1.4 Billion of Wasted Johannesburg Funds Three Deaths Reported as NYC Legionnaires' Outbreak Spreads Major Istanbul Projects Are Stalling as City Leaders Sit in Jail PATH Train Service Resumes After Fire at Jersey City Station Japan faces 'stacking' tariffs, where a new 15% levy is added to existing import taxes, even though it had expected to be given an exemption stripping out the old tariffs, Liberal Democratic Party policy chief Itsunori Onodera said in Tokyo. 'The tariffs have been imposed with no exemption, so the rate has risen by 15% as it stands,' Onodera said. 'We are requesting a prompt correction from the US.' Fresh confusion over the US-Japan trade deal came to the fore on Thursday, as Japan's chief negotiator visits Washington to press his counterparts to follow through on a pledge to cut a separate levy on car imports. The disagreement between the two nations over implementing the universal tariffs suggests more misunderstandings and friction may emerge in the future. Japanese media reports said Washington would not exempt Tokyo from an order stacking new 15% across-the-board tariffs on top of existing levies, hours before they came into effect. Japan's top trade negotiator Ryosei Akazawa had earlier disputed such an understanding. 'There will be no stacking,' Akazawa said on Tuesday before leaving for Washington. 'There's mutual understanding on this matter.' The controversy is the latest in a series over the agreement, which hasn't been laid out in an official joint document, and has been described differently by each side. Trump has said the deal opens up Japan's markets to US cars and other goods and brings $550 billion in investment, while Japan has touted lower tariffs for its own products. Asked about the difference in understanding between the US and Japan Thursday, Japan's chief spokesperson Yoshimasa Hayashi said Akazawa had reconfirmed the agreement on universal tariffs with the US. Akazawa met with US Commerce Secretary Howard Lutnick on Wednesday in the US, reiterating the terms of the trade agreement reached last month and calling for its quick implementation. The top priority for Japan is to have the US carry out a promise to cut car tariffs. An executive order released by the US administration last week indicated that the European Union will be given an exemption from tariff stacking, but didn't mention that Japan would also get such treatment. The impact from the stacking may be limited in scope. Before Trump began announcing new tariffs on nations around the world, the US had applied levies averaging 1.4% on Japanese goods, according to estimates by Kenichi Kawasaki, a professor at the National Graduate Institute for Policy Studies. More importantly, Japan is urging US President Donald Trump to lower tariffs on cars to 15% from 27.5%, a combination of an existing 2.5% and additional 25%, as agreed upon in the deal. The reduction wasn't mentioned in the White House fact sheet on the agreement, and it remains unclear when the change will take place. Toyota Motor Corp. cut its annual guidance as it warned of a ¥1.4 trillion ($9.5 billion) hit to its bottom line from US tariffs. The world's biggest carmaker now sees ¥3.2 trillion in operating income for the fiscal year ending in March 2026, it said Thursday. That's down from its initial forecast of ¥3.8 trillion. The damage to Toyota and other automakers bodes ill for Japan's economy as the auto sector employs roughly 8% of the nation's workforce. Major carmakers are also a trend setter for wage growth, which has underpinned the central bank's tapering of its monetary easing with gradual interest rate hikes. Implementing the deal is one of the reasons Japanese Prime Minister Shigeru Ishiba has cited for staying in his role even after his ruling party suffered a historic election loss last month. 'There are all sorts of debates over the tariffs, but we have reached an agreement,' Ishiba said at a press conference in Hiroshima on Wednesday. 'As stated by US government officials involved in previous US-Japan trade negotiations, it is much, much more difficult to implement the deal than agree on it.' --With assistance from Sakura Murakami, Takashi Hirokawa and Nicholas Takahashi. (Recasts with Japan politician remarks, Toyota earnings.) Russia's Secret War and the Plot to Kill a German CEO The Pizza Oven Startup With a Plan to Own Every Piece of the Pie AI Flight Pricing Can Push Travelers to the Limit of Their Ability to Pay Government Steps Up Campaign Against Business School Diversity A High-Rise Push Is Helping Mumbai Squeeze in Pools, Gyms and Greenery ©2025 Bloomberg L.P. 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
01-08-2025
- Business
- Yahoo
US-EU trade deal wards off tariff escalation but threatens growth
US President Donald Trump and European Commission President Ursula von der Leyen have announced a sweeping trade deal that imposes 15% tariffs on most European goods, warding off Trump's threat of a 30% rate if no deal had been reached by 1 August. The tariffs, or import taxes, paid when Americans buy European products could raise prices for US consumers and dent profits for European companies and their partners who bring goods into the country. Here are some things to know about the deal: Unresolved details Trump and von der Leyen's announcement, made during Trump's visit to one of his golf courses in Scotland, leaves many crucial details to be filled in. The headline figure is a 15% tariff rate on about 70% of European goods brought into the US, including cars, computer chips and pharmaceuticals. It's lower than the 20% that Trump initially proposed, and lower than his threats of 50% and then 30%. The remaining 30% of goods are still open to further decisions and negotiations. Von der Leyen said that the two sides agreed on zero tariffs on both sides for a range of 'strategic' goods: Aircraft and aircraft parts, certain chemicals, semiconductor equipment, certain agricultural products and some natural resources and critical raw materials. Specifics were lacking. She said that the two sides 'would keep working' to add more products to the list. Additionally, companies in the European Union would purchase what Trump said was $750 billion (€638bn) worth of natural gas, oil and nuclear fuel over three years to replace Russian energy supplies that Europe is seeking to exit anyway. Meanwhile, European companies would invest an additional $600bn (€511bn) in the US under a political commitment that isn't legally binding, officials said. Not yet in writing Brussels and Washington will shortly issue a joint statement that frames the deal but isn't yet legally binding, according to senior officials who weren't authorised to be publicly named according to European Commission policy. The joint statement will have "some very precise commitments and others that will need to be spelled out in different ways', a senior European Commission official said. EU officials said that the zero tariff list could include nuts, pet food, dairy products and seafood. Steel tariff remains Trump said that the 50% US tariff on imported steel would remain. Von der Leyen said that the two sides agreed to further negotiations to fight a global steel glut, reduce tariffs and establish import quotas — that is, set amounts that can be imported, often at a lower rate or tariff-free. Trump said that pharmaceuticals, a major import from the EU to the US, weren't included in the deal. Von der Leyen said that the pharmaceuticals issue was 'on a separate sheet of paper' from Sunday's deal. And von der Leyen said that when it came to farm products, the EU side made clear that 'there were tariffs that could not be lowered,' without specifying which products. 'Best we could do' The 15% rate removes Trump's threat of a 30% tariff. But it effectively raises the tariff on EU goods from 1.2% last year to 17% and would reduce the 27-nation bloc's gross domestic product by 0.5%, said Jack Allen-Reynolds, deputy chief eurozone economist at Capital Economics. Related US and China to talk in Stockholm as trade truce expiration nears Five things we don't know yet about the EU-US trade deal Higher tariffs, or import taxes, on European goods mean sellers in the US would have to either increase prices for consumers — risking loss of market share — or swallow the added cost in terms of lower profits. The higher tariffs are expected to hurt export earnings for European firms and slow the economy. Von der Leyen said that the 15% rate was 'the best we could do' and credited the deal with maintaining access to the US market, and providing 'stability and predictability for companies on both sides'. Mixed reaction German Chancellor Friedrich Merz welcomed the deal which avoided 'an unnecessary escalation in trans-Atlantic trade relations" and said that 'we were able to preserve our core interests', while adding that 'I would have very much wished for further relief in trans-Atlantic trade'. Senior French officials on Monday criticised the accord. Strategy Commissioner Clément Beaune said that the deal failed to reflect the bloc's economic strength. 'This is an unequal and unbalanced agreement," he said. "Europe didn't wield its strength. We are the world's leading trading power.' While the rate is lower than threatened, "the big caveat to today's deal is that there is nothing on paper, yet," said Carsten Brzeski, global chief of macro at ING bank. 'With this disclaimer in mind and at face value, the agreement would clearly bring an end to the uncertainty of recent months. An escalation of the US-EU trade tensions would have been a severe risk for the global economy," Brzeski said. 'This risk seems to have been avoided.' Car prices Asked if European carmakers could still profitably sell cars at 15%, von der Leyen said the rate was much lower than the current 27.5%. That has been the rate under Trump's 25% tariff on cars from all countries, plus the pre-existing US car tariff of 2.5%. The impact is likely to be substantial on some companies, given that automaker Volkswagen said that it suffered a €1.3bn hit to profits in the first half of the year from the higher tariffs. Mercedes-Benz dealers in the US have said they were holding the line on 2025 model year prices 'until further notice'. The German automaker has a partial tariff shield, because it makes 35% of the Mercedes-Benz vehicles sold in the US in Tuscaloosa, Alabama, but the company said that it expects prices to undergo 'significant increases' in coming years. The EU also agreed to lower its tariff on cars imported from the US to 2.5% from 10%. Trade gap Before Trump returned to office, the US and the EU maintained generally low tariff levels in what is the largest bilateral trading relationship in the world, with around €1.7 trillion in annual trade. Together the US and the EU have 44% of the global economy. The US rate averaged 1.47% for European goods, while the EU has averaged 1.35% for American products, according to the Bruegel think tank in Brussels. Trump has complained about the EU's €198bn trade surplus in goods, which shows Americans buy more from European businesses than the other way around, and has said that the European market isn't open enough for US-made cars. However, American companies fill some of the trade gap by outselling the EU when it comes to services such as cloud computing, travel bookings and legal and financial services. And about 30% of European imports are from American-owned companies, according to the European Central Bank.
