Latest news with #trade tensions
Globe and Mail
8 hours ago
- Business
- Globe and Mail
Keep it up, nasty Canadians
When four Canada-friendly, non-MAGA U.S. senators came to Ottawa to meet Prime Minister Mark Carney this week, Oregon's Ron Wyden advised Canada to de-escalate trade tensions by quickly making permanent changes to tax laws the U.S. doesn't like. But elsewhere, Donald Trump's ambassador to Canada, Pete Hoekstra, said Canadians are 'mean and nasty' because they took U.S. liquor off store shelves and cancelled vacations south of the border. So which one do you think worries Mr. Trump more? It's not Canadian tax laws, or retaliatory tariffs – those are the things that the U.S. can push back on with threats of their own. It's the stuff Mr. Hoekstra, exhibiting a mind-boggling lack of self-awareness, calls 'nasty.' It is Canadian customers rejecting U.S. products. There are talks on now to reach some kind of trade deal with Mr. Trump's administration, with a supposed Aug. 1 deadline. But even if there is a deal, you can bet it won't be the end of trade disputes with Mr. Trump. The nasty things that Mr. Hoekstra complains about could be the best tool that Canada has. The U.S. President likes to brag that he's holding the cards, and there is truth to that, especially when it comes to government-to-government negotiations. The U.S. has the bigger market and an economy less dependent on trade. That's why Mr. Carney gave in last month and paused collection of Canada's digital services tax (DST) when Mr. Trump broke off trade talks, citing the levy. It's why Ontario Premier Doug Ford caved on his March threat to add a 25-per-cent surcharge to electricity, after Mr. Trump said he'd retaliate by raising steel tariffs to 50 per cent. (Mr. Trump later did that, anyway.) On Tuesday, Mr. Ford called for 'dollar-for-dollar' retaliatory tariffs against the U.S., but other premiers were not so gung-ho. Yet the premiers – and Mr. Carney – did encourage the consumer boycotts: 'Keep it up,' British Columbia Premier David Eby said. Good advice. And there is still zeal for it among Canadians. Tony Keller: Trump's trade policy is completely nonsensical, and entirely clear 'We're not getting as much coverage in the Canadian media, but I keep my eyes on what the U.S. press is saying, and they are starting to really notice massive drops,' said former New Democratic MP Charlie Angus, now a 'Resistance' ringleader who writes Substack essays and speaks at boycott rallies. U.S. alcohol sales have been hit. American exports of food to Canada amounted to US$28-billion in 2024, but Mr. Angus noted that some grocery stores pulled many U.S. products from their shelves. He argued that ordinary Canadians have more tools to pressure the U.S. than political leaders. Canadians expected Mark Carney to be a tough-talking, 'wartime' prime minister, Mr. Angus said, but 'we haven't seen that.' But he also said he realizes Mr. Carney is trying to navigate the complexities of 'dealing with a gangster regime' in Washington. 'This is where the power of the boycott is a unique political lever, because Mark Carney or Doug Ford or Daniel Smith can't tell people to stop the boycott,' Mr. Angus said. The senators who met Mr. Carney on Monday – three Democrats and Alaska Republican Lisa Murkowski, a moderate swing vote in the U.S. Senate – declared their friendship and conceded that the boycott has had an impact. 'We are seeing a decrease in the travel from Canadians to Nevada,' Nevada Senator Catherine Cortez Masto said. New Hampshire Senator Maggie Hassan even said, 'We miss you.' That's nice. The senators had suggestions on how to settle the issue, such as Canada permanently rescinding the DST. But they didn't seem to include living up to past U.S. trade commitments – or stopping aggressive U.S. attacks on Canada's economy. Mr. Trump, after all, has said he wants the U.S. to imposes tariffs on Canadian autos so that it becomes uneconomical to make them in this country. That's pretty nasty. It isn't easy for Canadian political leaders to counter that kind of strong-arming. But Canadian consumers can have an impact as long as they keep being nasty.
Yahoo
2 days ago
- Business
- Yahoo
MP Materials Corp. (MP): 'Not As Big As Everyone's Trying To Make It,' Says Jim Cramer
We recently published . MP Materials Corp. (NYSE:MP) is one of the stocks Jim Cramer recently discussed. MP Materials Corp. (NYSE:MP) is an American rare earth metals company. Trade tensions between the US and China, which have seen China use rare earth metals as leverage, have injected new life into its shares as they have gained 288% year-to-date. MP Materials Corp. (NYSE:MP)'s shares have gained 112% in July on the back of several catalysts, such as Pentagon and Apple investments. Here's what Cramer said about the firm: 'MP's not as big as everyone's trying to make it out to be. But it's just so, the Defense Department's in there, Apple's in there, they're gonna get what, look I remember the days when everyone owned Moly. Molycorp. Because that was the predecessor. I remember when Lee Cooper called me and said listen. . .you've got to buy MP Materials because of the whole Moly thing. I said Moly lost billions. He goes yes, so did MP. And that's what's happening. We need more than just that strip. We need more than that part of California. But I'm sure that we're gonna do it. It's a different world. We've got such religion again.' Cramer previously discussed MP Materials Corp. (NYSE:MP)'s partnership with the Pentagon in detail: 'This morning, MP Materials announced that the Defense Department's taken a big stake in their company, which controls the largest rare earth mine in the country. The deal, which includes a $1 billion construction loan from a couple of banks along with a separate $150 million loan and a $400 million equity investment from the Defense Department, will ensure that MP can keep developing its Mountain Pass site and build a new rare earth magnet factory essential to our national security. It's all about having a reliable source of rare earths in order to reduce our dependence on China… Heavy machinery at work in a mining facility, excavating the earth for rare earth minerals. Now, suddenly, we know the strategic value of these rare earths… The Defense Department's assured us that the United States will be in a better position in the future by putting a price for the Mountain Pass site's key materials. You know what? It's an ingenious deal because it would simply cost too much for MP to refine all the rare earth minerals that our country needs by itself. We're finally getting serious about a national Achilles heel, and it's not just rare earths. Earlier this week, President Trump announced a 50% tariff on copper.' While we acknowledge the potential of MP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. 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
2 days ago
- Business
- Yahoo
China Rare-Earth Magnet Exports Jump 158% After Trade Truce
(Bloomberg) -- China boosted shipments of rare earth magnets in June — including to the US — after a global supply squeeze that threatened factory closures and inflamed trade tensions. Why the Federal Reserve's Building Renovation Costs $2.5 Billion Milan Corruption Probe Casts Shadow Over Property Boom How San Jose's Mayor Is Working to Build an AI Capital Total cargoes of the magnets rose to 3,188 tons last month, according to Chinese data on Sunday, more than double volumes of 1,238 tons in May in the midst of China's curbs. Flows to the US alone rose to 353 tons, up from just 46 tons. Total shipments were still substantially lower than before Beijing launched export controls in early April. China put restrictions on seven of 17 rare earth elements, which also extended to the powerful magnets used in high-tech manufacturing from electric vehicles to smartphones and fighter jets. That threatened deep disruptions to US industry and encouraged President Donald Trump to agree a trade truce. After trade negotiators struck an agreement in June in Geneva to ease tensions, Trump said China had agreed to fully supply rare earths and magnets. On July 1, US Treasury Secretary Scott Bessent said shipments of magnets from China had picked up but still weren't flowing fast enough. China's curbs didn't just target the US, with manufacturers worldwide fretting about the magnet shortage, and governments appealing to Beijing for relief. The export controls complicated already fragile ties between China and the European Union, where carmakers are heavily reliant on Chinese magnets. Not Enough The customs data supports anecdotal reports of an improvement in supplies, but also confirms that flows remain well below typical levels. Overall, June's volume was still only about two thirds of last year's monthly average. China makes about 90% of the world's rare earth permanent magnets, and the magnet shock of the last few months has added urgency to efforts by western governments to build supply chains that don't run through China. Earlier this month, the Pentagon agreed to buy a stake in MP Materials Co. — the only American rare earths miner — to fund construction of a major new magnets plant. The EU has seen some small improvements in the issuing of licenses for its magnets supplies since a meeting between the bloc's trade chief Maros Sefcovic and Chinese commerce minister Wang Wentao last month, according to a senior EU official, who declined to be identified discussing a sensitive matter. But 'systemic' issues remain and the subject will be on the agenda of the EU-China summit in Beijing later this week, the person said. China hasn't approved any license for magnet exports to Indian automakers since April, and some 30 applications are pending, Shailesh Chandra, the president of the Society of Indian Automotive Manufacturers, said at a press event in Mumbai on Tuesday. Supplies to India rose to 172 tons in June, up from 150 tons in May. On the Wire The massive economic stimulus and boost to clean power from a 1.2 trillion yuan ($167 billion) mega-dam in Tibet has proven alluring enough for Chinese leaders to set aside concerns about potential damage to biodiversity and relations with India. US tariffs — now averaging 40% overall — threaten a heavy blow to China's industry, according to Bloomberg Economics. Chinese authorities vowed 'zero tolerance' for the smuggling of strategic minerals and said it would strengthen law-enforcement to crack down on illegal shipments and the unauthorized transfer of related technology. China's trade with the world is within reasonable bounds and the nation isn't out to dominate global markets, a senior official said, pointing to figures showing domestic consumption is driving economic growth. This Week's Diary (all times Beijing) Monday, July 21 China sets monthly Loan Prime Rates, 09:00 Tuesday, July 22 Nothing major scheduled Wednesday, July 23 Iron ore resource development conference in Ningbo, Zhejiang, day 1 CCTD's weekly online briefing on Chinese coal, 15:00 CSIA's weekly polysilicon price assessment Thursday, July 24 EU-China summit in Beijing China solar association's mid-year conference in Datong, Shanxi, day 1 Iron ore resource development conference in Ningbo, Zhejiang, day 2 CSIA's weekly solar wafer price assessment Friday, July 25 China solar association's mid-year conference in Datong, Shanxi, day 2 Iron ore resource development conference in Ningbo, Zhejiang, day 3 China's weekly iron ore port stockpiles Shanghai exchange weekly commodities inventory, ~15:30 Saturday, July 26 Nothing major scheduled Sunday, July 27 China's industrial profits for June, 09:30 --With assistance from Alisha Sachdev and Alberto Nardelli. (Updates with details from fifth paragraph) A Rebel Army Is Building a Rare-Earth Empire on China's Border Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All Elon Musk's Empire Is Creaking Under the Strain of Elon Musk What the Tough Job Market for New College Grads Says About the Economy ©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
Bloomberg
2 days ago
- Business
- Bloomberg
Global Magnet Crisis Subsides as China Eases Up on Supply Curbs
China boosted shipments of rare earth magnets in June — including to the US — after a global supply squeeze that threatened factory closures and inflamed trade tensions. Total cargoes of the magnets rose to 3,188 tons last month, according to Chinese data on Sunday, more than double volumes of 1,238 tons in May in the midst of China's curbs. Flows to the US alone rose to 353 tons, up from just 46 tons. Total shipments were still substantially lower than before Beijing launched export controls in early April.
Finextra
3 days ago
- Business
- Finextra
CNY Continues to Dwindle in 2025 as China Seeks Renminbi Stability: By Dmytro Spilka
The ongoing trade tensions between the United States and China are playing out throughout different forex markets as the dollar continues to lose value. But is a strengthened renminbi in China's interests? USD/CNY ended the first half of 2025 1.8% down as United States President Donald Trump introduced reciprocal tariffs in a move that prompted a series of rapid trade war escalations with China. The move initially saw the dollar gain significant ground on the renminbi as fears over China's trade appeal began to fade. However, a de-escalation in tensions has seen the yuan climb to an eight-month high against the USD as Trump continues to position himself at odds with the US economy in the short term. Tariffs and the Big Beautiful Bill One of the biggest emerging complications for USD/CNY is the narrow passing of Trump's so-called 'Big Beautiful Bill,' in a move that's projected to add $3.3 trillion to government debt over the coming 10 years. While the Big Beautiful Bill has caused the dollar to weaken, April's tariff escalation with China, which saw levies briefly accelerate to 145% before a de-escalation brought negotiations between the nations, caused the yuan to struggle. April saw the yuan fall to its lowest levels since 2023 after the People's Bank of China (PBoC) loosened its grip on the currency in a bid to maintain the nation's appeal as a trading partner to other nations. Logically, a weaker yuan can be a functional means of offsetting the financial impact of tariffs on imports from China. With the deadline between the United States and China to negotiate a trade agreement set to expire in August, the outcome of any prospective trade agreement will have a decisive effect on USD/CNY. China Pursues Stability With Asia responsible for the majority of the United States' trillion-dollar trade goods deficit, it's reasonable to expect the renminbi to experience plenty of external pressures over the second half of 2025, regardless of its resilience against the dollar. Given that the PBoC manages the yuan through a daily fixing mechanism, the central bank has plenty of power to strengthen or weaken the currency in a bid to manage the impact of its trade challenges with the United States. While some analysts have speculated that it could be in the interests of the PBoC to weaken the yuan further to recapture its appeal as a global trade destination, experts have suggested that China will instead seek to stabilise the renminbi against the dollar. Fears over the impact of a sharp devaluation of CNY and its ramifications in triggering capital outflows and widespread financial market instability indicate that China would be incapable of weakening the yuan to offset the impact of tariffs should a trade deal fail to be agreed upon. ING analysts suggest that China's decision to only set a small move higher in its price fixings during the peak depreciation period of the yuan in April shows that the PBoC won't actively seek to devalue the currency in the face of exceptionally high tariff pressures. Trading in Volatility With China avoiding taking drastic measures to instead maintain its pursuit of stability, the outlook of USD/CNY will likely be decided by the Trump administration and its control over trade. According to ING, a long-term de-escalation on trade would upgrade the medium-term outlook for the yuan, sparking greater capital inflows, while US Federal Reserve rate cuts could help to support renminbi growth further as investors look overseas for opportunities. Given President Trump's openness in communicating news frequently on social media, it's clear that volatility in USD/CNY will persist throughout 2025, regardless of the outcome of trade negotiations between the United States and China. For traders seeking opportunities in USD/CNY, using a reliable broker like Just2Trade is the first step you should take. Just2Trade is a leading, EU-based broker licensed by the Cyprus Securities and Exchange Commission (CYSEC) with over 155,000 customer accounts. Stability and Unpredictability China's bid to introduce more stability to the yuan at a time when the currency is increasingly exposed to market volatility means that the United States will likely be positioned at the forefront of movements between the USD/CNY pair. The outcome of the trade negotiations between the United States and China before the August reciprocal tariff deadline will be decisive in shaping USD/CNY over the second half of 2025. However, the best trading opportunities will come from anticipating the twists and turns over the weeks ahead. With Trump's openness to comment on the performance of ongoing negotiations, there's likely to be plenty of uncertainty ahead for the trading pair. For forex traders with a higher risk appetite, there will also be many trading opportunities in the near future.
