Latest news with #tariff war
ABC News
19 hours ago
- Business
- ABC News
Threat or a thought bubble, Trump's new tariff idea spells trouble for Australia
It could be a throw-away line or a massive blow to the Australian economy delivered by US President Donald Trump. Australia thought it was relatively safe from Trump's tariff war. It turns out we could have been wrong. Once again, the US president seemed to be confirming a shift in his trade policy as an aside in a larger press conference. Trump loves to boast about his freewheeling speaking style — his so-called "weave," where he jumps from topic to topic in a way that might make someone think he's lost his train of thought, though he insists it's always clear in the end. He was holding court at his Turnberry Golf Course in Scotland. He was visiting a foreign country — the UK — but it was him playing host to British Prime Minister Keir Starmer and setting the terms of the interaction. There were plenty of awkward moments for Sir Keir, who had to politely listen to Trump rail against the scourge of wind farms, which he claimed were ruining the views from his golf course, and how damaging he believed illegal immigration had been to Britain. But the hardest part for the Australian prime minister to hear was likely when Trump began talking about the next stage of his one-man tariff offensive against the world. Fresh off claiming an agreement had been reached with the European Union — although details remain elusive — Trump acknowledged that doing individual trade deals with other countries was quite time-consuming. Who would've thought? Once again, he remarked with seemingly genuine shock at how many countries exist in the world: "You have 200 countries — more. People don't get that." Even though he'd previously boasted that countries were desperate to do deals with him, he now seemed resigned to the fact that he couldn't get them individually ticked off. So, he has a more efficient idea: "We're going to be setting a tariff for essentially the rest of the world. And that's what they're going to pay if they want to do business in the United States. Because you can't sit down and make 200 deals." Sound familiar? Back in April, during his "Liberation Day" announcement, Trump said almost all countries would be hit with a 10 per cent "baseline" tariff. Many were also slapped with higher "reciprocal" rates, though most of those were subsequently put on hold. They're due to come into effect this week for countries that haven't struck deals with the US. Australia only received the baseline rate, largely because it buys more from the US than it sells. But Trump clearly doesn't think that baseline rate cuts it anymore. He said it would likely be lifted to "somewhere in the 15 to 20 per cent range", an idea he had first floated during a phone interview with NBC earlier this month. If this comes to pass — and it's a big "if", given Trump's tendency to announce policy one day and backtrack the next — it would be a massive economic blow to Australian businesses that export to the US. While the current 10 per cent impost makes Australian products more expensive for US consumers and less competitive relative to American goods, it was thought to give Australian businesses a leg up compared to countries hit with reciprocal tariffs. It had looked like 10 per cent was the floor rate, and no other country would receive a more favourable arrangement. It also gave Australia little incentive to negotiate a better deal with the US, since the Trump administration didn't seem willing to go lower than 10 per cent or drop it entirely. But if Trump now imposes a 20 per cent baseline tariff, Australia will be disadvantaged compared to countries that have already struck better deals — or at least "frameworks" of deals. The UK, Japan, and now the EU have all said they've secured deals where their exports to the US are hit with a 15 per cent duty. So, from being the least badly treated friend, Australia might now be getting worse treatment than many large economies. It would also seem, on face value, to be clearly unfair, even based on Trump's own questionable tariff logic. Australia had a lower rate because the administration said it was allowing better access for US goods. But now it may well face a higher tariff than the EU, which Trump has previously bashed as one of the most egregious blockers of American trade ambitions. Six months into his second term, it's difficult to know when Trump is clearly stating a new policy or just thinking out loud in front of the world's media. But his words seem pretty clear on this occasion: he's planning to raise the baseline tariff, and that's going to hurt Australian businesses. Trump's Commerce Secretary, Howard Lutnick, said last week that Trump wasn't planning to hike the baseline. But in the Trump administration, the only word that seems to matter is his. Perhaps it's a negotiating tactic, though countries only facing the baseline tariff weren't even sent the recent letters Trump fired off, imploring leaders to do a deal. Even if this is just a thought bubble, Australia's leaders will need to take it seriously — because when it comes to Trump, thought bubbles can be highly consequential.
Washington Post
2 days ago
- Business
- Washington Post
U.S. and China likely to extend trade truce to delay sky-high tariffs
The United States and China are set to begin their third round of trade talks in as many months on Monday, their latest bid to tamp down a tariff war that risks upending global supply chains and further straining relations between the world's two largest economic powers. The two-day talks, headed by Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, are taking place in Stockholm and come ahead of the Aug. 12 deadline for both countries to make progress toward a deal or return to astronomically high tariffs.
Zawya
18-07-2025
- Business
- Zawya
G20 finance chiefs back central banks' independence as they seal communique
Finance chiefs from the Group of 20 countries stressed the importance of central bank independence in a communique issued on Friday following a two-day meeting in South Africa's coastal city of Durban. The ministers and central bankers pledged to boost cooperation as they sealed their first communique since October 2024, a month before President Donald Trump's election victory and subsequent tariff war. The issue of central bank independence hung heavily over the meeting following Trump's repeated berating of U.S. Federal Reserve Chair Jerome Powell for not cutting interest rates, attacks that have roiled global financial markets. The communique was reached in the absence of U.S. Treasury Secretary Scott Bessent from the two-day meeting, though Washington was represented by Michael Kaplan, acting under secretary of the Treasury for international affairs. Bessent also skipped the previous G20 finance chiefs' gathering in Cape Town in February, even though Washington is due to assume the G20's rotating presidency in December. "Central banks are strongly committed to ensuring price stability, consistent with their respective mandates, and will continue to adjust their policies in a data-dependent manner. Central bank independence is crucial to achieving this goal," the communique said. South Africa's deputy finance minister David Masondo told reporters that the meeting outcomes contained in the communique were "consented to by all members" and centred on "strategic macroeconomic issues". The communique also recognised "the importance of the World Trade Organisation to advance trade issues", while adding the body needed reform. The agreement is seen as an achievement even though communiques issued by the G20, which emerged as a forum for cooperation to combat the 2008 global financial crisis, are non-binding. G20 finance ministers failed to reach a joint stance when they met in February, to the dismay of hosts South Africa. South Africa, under its presidency's motto "Solidarity, Equality, Sustainability", has aimed to promote an African agenda, with topics including the high cost of capital and funding for climate change action. The finance ministers and central bank governors said in Friday's communique that they were committed to addressing debt vulnerabilities in low- and middle-income countries in an effective, comprehensive and systematic manner. (Reporting by Olivia Kumwenda-Mtambo, Kopano Gumbi, Colleen Goko, Philip Blenkinsop, Maria Martinez in Durban and Andrea Shalal in Washington; Writing by Philip Blenkinsop and Emelia Sithole-Matarise; Editing by Rachna Uppal and Joe Bavier)
Malay Mail
18-07-2025
- Business
- Malay Mail
Trade war avoidable if US will ‘act like a superpower', China says as Aug 12 deadline looms
China, US talks in Europe show tariff war unnecessary, commerce minister says Wang Wentao urges United States to act like a superpower China facing August 12 tariff deadline BEIJING, July 18 — China wants to bring its trade ties with the US back to a stable footing, its commerce minister said, adding that recent talks in Europe showed there was no need for a tariff war while urging the US to act in a manner befitting of a superpower. Commerce Minister Wang Wentao told reporters on Friday that the 'ups and downs' in the two countries' relationship underscored their economic interdependence. Asked about the United States specifically, Wang said: 'Major countries should act like major countries. They must shoulder their responsibilities,' adding that China would protect its national interests. China is facing an August 12 deadline to reach a durable tariff agreement with the United States, after Beijing and Washington reached a preliminary deal last month to end weeks of escalating tit-for-tat tariffs. If no deal is reached, global supply chains could face renewed turmoil from duties exceeding 100 per cent. Wang said negotiations in Geneva and London earlier this year demonstrated there was no need to return to a trade war. 'Practice has proven that through dialogue and consultation, with leadership and communication at the highest levels, we can properly manage contradictions and resolve our differences,' he said. 'We will continue to strengthen dialogue and communication, deepen consensus, reduce misunderstandings, enhance cooperation, to jointly put China-US economic and trade relations back on track to achieve healthy, stable and sustainable development.' China's rare earths exports rose 32 per cent month-on-month in June, customs data showed on Monday, in a sign that agreements struck last month in London to free up the flow of the metals were possibly bearing fruit. Chipmaker Nvidia will also resume selling its H20 AI chips to China, Chief Executive Jensen Huang said at an event in Beijing this week, a move US Commerce Secretary Howard Lutnick said was also part of negotiations on rare earths. Wang said on Friday that he had met Huang the previous day, describing the meeting as evidence that 'as the dust settles, everyone has come to the conclusion – especially the US side – that forced decoupling is impossible.' Wang said the current overall tariff level imposed by the US on China was 'still high' at 53.6 per cent. Analysts have said that additional duties exceeding 35 per cent will probably wipe out Chinese manufacturers' profit margins. 'Both sides have come to understand that they need each other, as lots of the goods and services that we exchange are irreplaceable, or at least difficult to exchange in the short-term,' Wang said. 'China does not want a trade war, but it is not afraid of one,' he reiterated. (US$1 = 7.1811 Chinese yuan renminbi) — Reuters
Asharq Al-Awsat
18-07-2025
- Business
- Asharq Al-Awsat
China Says Successful US Trade Talks Make Return to Tariff War Unnecessary
China wants to bring its trade ties with the US back to a stable footing, its commerce minister said, adding that recent talks in Europe showed there was no need for a tariff war while urging the US to act in a manner befitting of a superpower. According to Reuters, Commerce Minister Wang Wentao told reporters on Friday that the "ups and downs" in the two countries' relationship underscored their economic interdependence. Asked about the United States specifically, Wang said: "Major countries should act like major countries. They must shoulder their responsibilities," adding that China would protect its national interests. China is facing an August 12 deadline to reach a durable tariff agreement with the United States, after Beijing and Washington reached a preliminary deal last month to end weeks of escalating tit-for-tat tariffs. If no deal is reached, global supply chains could face renewed turmoil from duties exceeding 100%. Wang said negotiations in Geneva and London earlier this year demonstrated there was no need to return to a trade war. "Practice has proven that through dialogue and consultation, with leadership and communication at the highest levels, we can properly manage contradictions and resolve our differences," he said. "We will continue to strengthen dialogue and communication, deepen consensus, reduce misunderstandings, enhance cooperation, to jointly put China-US economic and trade relations back on track to achieve healthy, stable and sustainable development." China's rare earths exports rose 32% month-on-month in June, customs data showed on Monday, in a sign that agreements struck last month in London to free up the flow of the metals were possibly bearing fruit. Chipmaker Nvidia will also resume selling its H20 AI chips to China, Chief Executive Jensen Huang said at an event in Beijing this week, a move US Commerce Secretary Howard Lutnick said was also part of negotiations on rare earths. Wang said on Friday that he had met Huang the previous day, describing the meeting as evidence that "as the dust settles, everyone has come to the conclusion - especially the US side - that forced decoupling is impossible." Wang said the current overall tariff level imposed by the US on China was "still high" at 53.6%. Analysts have said that additional duties exceeding 35% will probably wipe out Chinese manufacturers' profit margins. "Both sides have come to understand that they need each other, as lots of the goods and services that we exchange are irreplaceable, or at least difficult to exchange in the short-term," Wang said. "China does not want a trade war, but it is not afraid of one," he reiterated.
