Latest news with #negotiation
Yahoo
2 hours ago
- Business
- Yahoo
Trump's Trade Deals Come With Few Details to Flesh Out Big Numbers
(Bloomberg) -- President Donald Trump's flurry of trade deal announcements are so far proving light on detail — with key aspects still under negotiation, partners giving mixed signals about what they signed up for, and big numbers shrinking under scrutiny. The World's Data Center Capital Has Residents Surrounded An Abandoned Art-Deco Landmark in Buffalo Awaits Revival Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus Boston's Dumpsters Overflow as Trash-Strike Summer Drags On Trump touted landmark agreements with Japan and the European Union in the past week, adding to pacts with a handful of smaller economies. An extension of the US-China tariff truce is also in the works. The administration is taking a victory lap, claiming vindication for Trump's bargaining style as he prepares a raft of import-tax hikes before an Aug. 1 deadline. Follow the The Big Take daily podcast on Apple, Spotify or anywhere you listen. 'I think the trade deals are working out very well — hopefully for everybody, but for the United States they're very, very good,' the president said Tuesday while flying home to Washington from Scotland. Yet while the scale of America's tariff wall is becoming clearer, other details remain fuzzy in the extreme – especially investment promised by counterparties, which on paper exceeds $1 trillion for the EU and Japan deals alone. For Trump, these capital pledges are evidence that his protectionist agenda is on course to do what he promised it would: revive American manufacturing and create jobs. If actual investment falls short of the big numbers, tariffs could end up boosting revenue for the government – and costs for US consumers and companies – while failing to achieve those loftier goals. 'Signing Bonus' Trump's deal with Japan includes a $550 billion fund that the US called a 'foreign investment commitment,' and the president said amounts to 'a sort of signing bonus.' But Japanese officials said only 1% or 2% of the total – a maximum $11 billion — would be investment, with the rest essentially made up of loans. And they said the 90%-10% profit split in America's favor highlighted by Trump's team only applies to that smaller investment portion. At minimum, the two countries are describing the accord differently, raising the potential for future snags. 'It's not that $550 billion in cash will be sent to the US,' Japan's top trade negotiator Ryosei Akazawa said. But Commerce Secretary Howard Lutnick put it this way, speaking last week to Fox News: 'This is literally the Japanese government giving Donald Trump $550 billion.' Lutnick said Trump would increase tariffs again if Japan reneged on the fund. As for the EU deal, he acknowledged on Tuesday that there's 'plenty of horse-trading left to do.' The EU pledged $600 billion in new investments. European officials say the target is just an aggregate of promises by companies, and the bloc can't commit to a binding target. Neither side has spelled out the contents. 'Basically they're going to build the factories,' Lutnick told Fox News Monday. 'All the car companies committed they're going to build the factories. The pharmaceutical companies have gone out and said they're going to build these factories.' The EU also promised energy purchases from the US worth $750 billion over the next three years — roughly triple the current pace. That target could strain the capacity of American exporters as well as European importers, some analysts say. Aside from the tariff rates, much of the recent deals consist of 'vague promises with large numbers attached that don't have any mechanisms for follow-through,' said Alex Jacquez, who served on the Biden administration's National Economic Council. 'Nobody seems to believe that these checks as written are actually going to cash.' Russia Wildcard There's more clarity around the tariff numbers, though they're still in flux too. Trump will raise duties on most imports from Japan and the EU to 15% from the current 10%. Those partners will get a partial waiver on certain industry-specific US tariffs that carry higher rates worldwide – like for automobiles – but not on others like steel and aluminum, where talks on an exemption involving quotas continue. The revised auto tariffs on Japan and the EU are not yet finalized but are expected to take effect on Aug. 1, according to a White House official. Europeans are pushing for further exemptions, especially for its wine and spirits industry. Trump says there are more of these sectoral tariffs to come, and some of his recent deals may cause confusion by preempting yet-to-be-announced numbers. For instance, he pledged 15% tariffs for the EU on semiconductors and pharmaceuticals — two sectors where rates haven't been finalized. A senior US official also said that Trump agreed to grant Japan whatever the lowest rate is for those two categories, but that commitment isn't in the public US fact sheet. A White House official said that the lower 15% rates for pharmaceuticals and chips would only kick-in once higher levies Trump has threatened under Section 232 of the Trade Expansion Act take effect. 'Always Willing' Other already-announced deals have raised questions too – like the one with Vietnam earlier this month, which appears to have surprised officials in Hanoi with a tariff of 20%, higher than they were said to have agreed to. US and Chinese negotiators, after two days of talks in Sweden this week, said they're on track to extend the tariff truce between the two countries. A wildcard there is Trump's threat to impose new charges on countries that buy energy from Russia. China is the biggest buyer of Russian oil — followed by India. Trump announced a 25% tariff rate for India in a social media post early Wednesday, 'PLUS A PENALTY' due to its energy purchases from Moscow, starting on Aug. 1. He didn't specify the size of the extra charge. The fate of the two biggest US trade partners also seems to be headed down to the wire. Trump has downplayed the chance of a deal with Canada, though Canadian Prime Minister Mark Carney shrugged that off. Both Canada and Mexico face tariff hikes this week, but they won't apply across the board. Goods compliant with the USMCA trade pact are poised to maintain their current exemption, a major relief for both countries. Some critics say the administration's deal-by-deal approach to tariff rates risks ending up as a patchwork that lacks coherence. US auto companies, for example, objected to the Japan agreement, saying imported cars that don't have any US content are set to be taxed less than North American-built models that do. For all the unresolved questions, the administration is casting Aug. 1 as something of a milestone in setting rates after months of threats. It's just not likely to be the final word in Trump's rolling dealmaking. Several more pacts are very close, and tariff rates will either be agreed or imposed by Aug. 1, Kevin Hassett – head of the White House National Economic Council – said on Tuesday. But even after that, 'people can continue to negotiate,' he said. 'The president is always willing to negotiate.' --With assistance from Jennifer A. Dlouhy and John Harney. (Updates throughout with India tariff rate, more EU talks) It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Burning Man Is Burning Through Cash Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts Russia Builds a New Web Around Kremlin's Handpicked Super App ©2025 Bloomberg L.P. Sign in to access your portfolio
National Post
6 hours ago
- Business
- National Post
John Ivison: Canada's best strategy is patience, not elbows
My suggestion in a column last week after Japan struck a trade deal with the United States — that it might be better if Canada didn't settle with President Trump just yet — was ridiculed in certain quarters. Article content Canada is a mouse fighting an elephant and is going to get crushed, said one correspondent. Article content Article content ''Elbows up Carney' will be left in the dust when he caves to Trump,' he said. Article content Article content But Canada is not without leverage – it just has to be creative … and patient. Article content Article content The agreement that the European Union signed last Sunday reinforces the point that Ottawa should take advantage of the fact Trump's attention is elsewhere. The president acknowledged as much ahead of his trip to Scotland last weekend, when he said: 'We haven't really had a lot of luck with Canada … (it) could be one where they'll just pay tariffs, not really a negotiation.' Article content That should suit Canada just fine. The strategic challenge is that the status quo is working better for this country than for anyone else. We want to maintain that, without drawing too much attention to it. The effective tariff rate that Canada is paying is around 6 per cent, including section 232 tariffs on steel, aluminum and autos — much lower than the effective rate the rest of the world is paying (the Budget Lab at Yale estimates that at 18 per cent). Article content This is not the time for 'elbows up,' even though Canada would like to get those sectoral tariffs reduced from the unsustainable levels currently being levied. Canadian steel and aluminum producers are currently paying 50 per cent tariffs, effectively killing the export business to the U.S. Aluminum exports have held up relatively well because of the lack of alternative sources of supply. But steel exports to the U.S. have fallen by more than 30 per cent since tariffs were introduced. Article content Article content The impact on the auto industry is just as grave, as General Motors pointed out when it said tariffs cost it more than $1 billion in the second quarter of the year. Duties on finished vehicles exported into the U.S. are 25 per cent (or 12.5 per cent if the vehicle contains 50 per cent U.S. content). Article content Article content If negotiators can make progress in reducing those tariff levels to more stable levels, then concessions can be made elsewhere. Article content It matters less what headline tariff percentage level Canada signs up for (Japan and the E.U. were forced to agree to blanket 15 per cent deals that were more something for nothing, rather than quid pro quo). Article content It would be manageable if Canada agreed to a 20 per cent tariff, as long as the 90 per cent of exports remained exempt under the U.S.-Canada-Mexico trade agreement and that agreement was extended to cover autos, steel and aluminum.
Bloomberg
6 hours ago
- Business
- Bloomberg
Scrutinizing the Big Numbers in Trump's Trade Deals
President Donald Trump's flurry of trade deal announcements are so far proving light on detail — with key aspects still under negotiation, partners giving mixed signals and big numbers shrinking under scrutiny. In the past week, he's touted landmark agreements with Japan and the European Union, adding to pacts with a handful of smaller economies. The administration is taking a victory lap, claiming vindication for Trump's bargaining style as he prepares a raft of tariff hikes before an Aug. 1 deadline. But many details remain fuzzy – especially investment promised by counterparties, which on paper exceeds $1 trillion for the EU and Japan deals alone.
Yahoo
8 hours ago
- Business
- Yahoo
Trump Says India May Get 20% to 25% Tariff But Not Yet Final
(Bloomberg) — President Donald Trump said that India may be hit with a tariff rate of 20% to 25%, while cautioning that the final levy still hadn't been finalized as the nations negotiate a trade deal ahead of an Aug. 1 deadline. The World's Data Center Capital Has Residents Surrounded An Abandoned Art-Deco Landmark in Buffalo Awaits Revival Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus Boston's Dumpsters Overflow as Trash-Strike Summer Drags On 'I think so,' Trump told reporters Tuesday when asked if that was a possible tariff rate for New Delhi. 'India has been a good friend, but India has charged basically more tariffs than almost any other country,' Trump said aboard Air Force One as he returned to Washington from a five-day visit to Scotland. 'You just can't do that.' The Indian rupee extended a three-day decline on the tariff threat, while the BSE Sensex gave up early gains to trade flat. The local currency fell as much as 0.5% to 87.24 to the dollar. Any rate 20% or higher would come as a disappointment for India, which had been seeking a better deal than the 19% that Trump offered Indonesia and the Philippines. Bloomberg reported earlier this month that the US and India were working toward an agreement that would reduce proposed tariffs to below 20%, even as Prime Minister Narendra Modi's administration resisted demands to open up the agricultural and dairy sectors. India and the US have already signed terms of reference for a bilateral trade deal and have agreed to a fall deadline for that. The two sides have been negotiating an interim agreement that New Delhi hoped would give it a reprieve from higher US import duties due to kick in on Friday. Officials in India are still awaiting word from the White House on the extent of tariffs the South Asian nation will face this week, an official told reporters in New Delhi earlier this week, asking not to be identified as the discussions are private. An interim deal remains unlikely for now, but India is optimistic about reaching a trade agreement by fall, the official added. India and the US have held five rounds of talks so far and a trade team from Washington is expected to visit New Delhi by mid-August, the person said. India's Ministry of Commerce and Industry didn't respond to an email seeking comments on Wednesday. Relations with the US have hit some turbulence in recent months. Trump's insistence that his trade threats prompted India and Pakistan to reach a ceasefire in April incensed officials in New Delhi, and the US president has also threatened 'secondary tariffs' on India, China and other buyers of Russian oil if President Vladimir Putin doesn't end hostilities with Ukraine. US Trade Representative Jamieson Greer said Monday that the US needed more time for talks with India to gauge the country's willingness to open its market more to American exports. Reuters reported earlier Tuesday that New Delhi is bracing for higher tariffs likely between 20% and 25%. Follow Bloomberg India on WhatsApp for exclusive content and analysis on what billionaires, businesses and markets are doing. Sign up here. India has conveyed to the Trump administration the red lines it won't breach in finalizing an agreement, Bloomberg reported earlier this month, citing officials familiar with the matter. New Delhi won't allow the US to export genetically modified crops to the country, and is unwilling to open widely its dairy and automobile sectors, the people said, asking not to be identified because the discussions are private. India has expressed willingness to offer zero tariffs on some goods such as auto components and pharmaceuticals. Modi's government has taken a more cautious stance as it faces pressure to protect India's politically sensitive farm sector. Millions depend on agriculture for their livelihoods and farmers form a key voting bloc for Modi's party, which faces a crucial state election in the coming months. The president was commenting ahead of an Aug. 1 deadline when a slew of so-called reciprocal tariffs are set to take effect on dozens of trading partners. Trump announced higher levies in April, before pausing those tariffs at a reduced 10% rate to allow time for negotiations. Despite an extended deadline, Trump has only secured a handful of deals. —With assistance from Jon Herskovitz, Shruti Srivastava, Malcolm Scott, Ruchi Bhatia, Diksha Madhok, Subhadip Sircar and Shadab Nazmi. (Updates with market reaction in fourth paragraph.) Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts Elon Musk's Empire Is Creaking Under the Strain of Elon Musk ©2025 Bloomberg L.P.
Yahoo
a day ago
- Sport
- Yahoo
💥 Inter step up Lookman chase: Marotta meets Percassi today
Inter-Lookman, now or never. The words of Nerazzurri president Giuseppe Marotta leave no room for interpretation, we are in the final phase of the negotiation. Inter wants a definitive answer within 72 hours, to understand whether to proceed with the negotiation or, otherwise, change target. In Viale della Liberazione, there is positivity, both for the good relations between the two clubs and because - in fact - the distance between demand (50 million) and offer (43 + bonus) is really minimal. Today, in fact, DS Ausilio will break the wall of 40, after having received the okay from Oaktree. And this, as reported by Gazzetta dello Sport, is a good sign. Lookman, in fact, is not a future player who can be used to make a profit in a couple of seasons. At 28 years old, the Nigerian is in his "prime", has experience and has already decided a European final with three goals. The diktat of Oaktree, in short, seems to have changed: young people yes, but with exceptions if it's about strong and ready-to-win players. 💥 Arm wrestling to come? At this point, all that's left is to wait for the course of events. Inter does not have a plan B, because in their head they only have Lookman. Atalanta, on the other hand, as demonstrated a year ago with Koopmeiners, is a club that rarely gives discounts, especially to a rival. Two factors are in favor of the Nerazzurri: the player's will, who has never opened up to other destinations; the fact that the other suitors, Napoli and Atletico Madrid in the first place, have backed out. This morning Marotta will meet Luca Percassi, on the occasion of the League Council. There will be the Inter acceleration, which will have to be decisive. For now, the player's arm wrestling is excluded, an eventuality that Inter would also like to avoid in order not to damage the relationship with Dea. But we are in the decisive phase. 🤝 The agreement with Ademola Once Atalanta is convinced to part with their player, for Inter there should be no more obstacles. The agreement with Lookman, in fact, has already been found for some time, based on a 5-year contract at 4.5 million euros per season + bonuses. At this point, we are waiting for developments, which could arrive as early as today. And which, as stated by Marotta, will not develop beyond 72 hours, the limit within which the president wants an answer. If it is positive, there will be the decisive acceleration on Lookman. In case of a negative response, the search for a similar profile will begin. Inter, however, is convinced that it will not be necessary. This article was translated into English by Artificial Intelligence. You can read the original version in 🇮🇹 here. 📸 ALBERTO PIZZOLI - AFP or licensors
