Latest news with #ÁlvaroPereira
Yahoo
6 days ago
- Business
- Yahoo
Trump tariffs live updates: Trump calls China's Xi "Extremely hard to make a deal with"
President Trump has doubled tariffs on steel and aluminum imports from 25% to 50% as of 12:01 a.m. Washington time, Wednesday, June 4, according to a proclamation he signed on Tuesday. The United Kingdom is the only country exempt from the hike. Meanwhile, Trump's trade war is causing the global economy to slow, with growth now heading for its weakest pace since the COVID-19 pandemic, the OECD warned on Tuesday. The OECD cut its forecasts for most G20 economies and warned that easing trade tensions is key to boosting investment and keeping prices stable. Álvaro Pereira, the OECD's chief economist, said countries need to lower trade barriers. 'Otherwise, the growth impact is going to be quite significant,' he said. 'This has massive repercussions for everyone.' The warning comes as the US is pushing countries to speed up trade talks. The White House confirmed Tuesday that the US had sent a letter to partners as a "friendly reminder" that Trump's self-imposed 90-day pause on sweeping "reciprocal" tariffs is set to expire in early July. White House advisers have for weeks promised trade deals in the "not-too-distant future," with the only announced agreement so far coming with the United Kingdom. Meanwhile, US tensions with two key trade partners amped up on Monday after Trump promised last weekend to double tariffs on steel and aluminum. The White House said he will sign an order to do so on Tuesday. China responded to Trump's claim on Friday that it has "totally violated its agreement" with the US, in turn accusing the US of breaching the agreement and vowing to protect its interests. The US-China detente — reached earlier this month, when each country eased sky-high tariffs on the other — looks more fragile amid both trade-related and other tensions. US trade talks with the EU have also come back into focus as an early-July deadline also looms for Trump's 50% tariffs on imports from the bloc. The EU on Monday said it "strongly" regrets Trump's hike on steel and aluminum imports, saying it undermines planned trade talks. Meanwhile, Trump's most sweeping tariffs face legal uncertainty after a federal appeals court allowed the tariffs to temporarily stay in effect, a day after the US Court of International Trade blocked their implementation, deeming the method used to enact them "unlawful." Administration officials also hinted that court rulings would not be the final say. Yahoo Finance's Ben Werschkul has an overview of the other maneuvers Trump could pursue. Here are the latest updates as the policy reverberates around the world. Trump has posted to his Truth Social account calling Chinese leader Xi Jinging "Hard to make a deal with". Posting at 2:30am Wednesday morning, Washington time, the post pulls into focus the tight nature of negotiations between the world's two largest economies. The post in full: Trump's statement follows a series of back-and-forth claims from both the US and China that each country has violated the tentative trade agreement currently in place. Since the May 12 agreement in Geneva, both countries have agreed to a 90-day truce in the contentious trade war that rocked the global economy. Trump and Xi are expected to talk directly to each other later in the week, according to White House press secretary Karoline Leavitt. The White House on Tuesday confirmed that the US has sent a letter to trade partners seeking to speed up talks ahead of a self-imposed July deadline. Though Reuters reported earlier this week that the administration asked for countries' best offers by Wednesday, White House press secretary Karoline Leavitt on Tuesday framed the letter, which she said was sent by the US Trade Representative, as a "friendly reminder." "I can confirm the merits in the content of the letter," she said, per Bloomberg. She sadded: "USTR sent this letter to all of our trading partners, just to give them a friendly reminder that the deadline is coming up, and they are in talks. The president expects good deals, and we are on track for that." Bloomberg cited a "recipient of the letter" who said it was "framed as a way to steer ongoing talks rather than an ultimatum. President Trump will sign an executive order doubling duties on steel and aluminum imports to 50%, the White House said Tuesday. Trump first announced plans to up the duties last Friday during an event with steelworkers in Pennsylvania. White House press secretary Karoline Leavitt didn't confirm the exact timing of the escalation Tuesday. Trump's most sweeping "reciprocal" tariffs are locked in legal limbo. But duties on specific sectors or commodities, like those on steel and aluminum, are so far unaffected because Trump has imposed them under a different legal authority. President Trump and his team have touted for weeks that deals are right around the corner. But progress has been less forthcoming. Yahoo Finance Washington Correspondent Ben Werschkul reports: Read more here. The aerospace industry is urging the Trump administration to hold off on adding new tariffs, as they could risk air safety and further disrupt the supply chain. Reuters reports: A group representing major U.S. and global aeropsace companies on Tuesday warned new tariffs on imported commercial aircraft, jet engines and parts could put air safety and the supply chain at risk or have unintended consequences. The Commerce Department last month opened a "Section 232" investigation that could be used as a basis for even higher tariffs on imported planes, engines and parts. The Aerospace Industries Association, which represents Boeing, Airbus, RTX, GE Aerospace and hundreds of other companies, urged the Commerce Department to extend public comments by 90 days and impose no new tariffs for at least 180 days. They urged further consultation with industry on "any Section 232 tariffs to ensure they accurately reflect national security concerns and do not put the supply chain and aviation safety at risk." Read more here. A new survey out Tuesday by insurance brokerage Gallagher showed that a majority of US business owners see tariffs as a top risk to be worried about. Reuters reports that President Trump's trade wars have already cost companies more than $34 billion in lost sales and higher costs, according to an analysis of corporate disclosures. "Our survey showed supply chain disruptions were a concern to business owners, with 90% reporting they are concerned about the impact of tariffs on their businesses," Gallagher CEO J. Patrick Gallagher told Reuters. "Global supply chains, strained by geopolitical conflicts and extreme weather events, remain vulnerable to disruptions." The findings come as tensions with China and other key trading partners ratcheted up again after President Trump threatened to double steel and aluminum tariffs. Also on Tuesday, the OECD warned of slowing growth due to trade disputes. Read more here. Taiwan's government said on Tuesday that it is continuing to "communicate closely" with the US in order to reach a trade deal, but cannot give any more information at this point on the negotiations. Reuters reports: Read more here. Consumer-facing multinationals are moving their China supply chains as trade wars continue to add uncertainty for businesses. Yahoo Finance's Brian Sozzi broke down what he heard from three major companies: Read more here. President Trump's tariffs on steel and aluminum imports are set to double starting Wednesday. That could present a problem for the only deal the US has so far agreed to during its 90-day "reciprocal" tariff pause. From Bloomberg: Under that "economic prosperity agreement," US tariffs on UK metal imports are set to be slashed to zero. But Starmer's spokesman said he doesn't know whether the looming doubling of steel levies will apply to UK imports while the two sides work on implementing the deal. Read more here. Yahoo Finance's senior reporter Hamza Shaban looks at how the American-made company Boeing has become a tool in the US government's trade negotiations: Read more here. A survey conducted by Reuters has revealed that Trump's tariffs will likely cause a slowdown in US home construction. Reuters reports: Read more here Yahoo Finance's senior legal reporter Alexis Keenan looks at what could make or break President Trump's "Liberation Day" tariffs. Read more here. Traders are taking advantage of Trump's trade war and looking at how to ride tariff-driven sell-offs and rallies. Bloomberg News reports: Read more here. Reuters reports in an exclusive: Read more here. The Bank of Japan Governor Kazuo Ueda said that the country's economy can take the hit from US tariffs and sustain a cycle of rising inflation accompanied by wage growth, indicating the banks readiness to raise interest rates further. Reuters reports: Read more here. President Donald Trump is eager to land more trade deals, but talks with China and the EU are stalling amid communication breakdowns and renewed tariff threats. Bloomberg News reports: Read more here. Reuters reports: Read more here. Global economic growth is weakening faster than expected, the the Organisation for Economic Cooperation and Development (OECD) said on Tuesday, as Trump's trade war starts to take a toll on the US economy. The OECD cut its outlook for global output for the US and most of the G20 leading economies and warned that agreements to ease trade barriers are key to reviving investment and avoid higher prices. Global growth is expected to be 2.9% in 2025 and 2026, the OECD said in its latest full outlook. The figure has exceeded 3% every year since 2020, when output plunged because of the pandemic. The OECD said that US growth will slow sharply, falling from 2.8% in 2024 to 1.6% in 2025 and 1.5% next year. The OECD said that the Federal Reserve likely won't cut rates this year because inflation will remain too high. The latest assessment represents a downgrade to its March interim forecasts, which preceded Trump's 'Liberation Day' tariff announcements on April 2. Even then, the OECD warned of a 'significant toll' stemming from the levies and associated uncertainty over policy. The OECD also cut 2025 forecast for G20 countries, which include China, France, Japan, India, UK, and South Africa. Álvaro Pereira, the OECD's chief economist, said countries need to strike deals that would lower trade barriers. 'Otherwise, the growth impact is going to be quite significant,' he said. 'This has massive repercussions for everyone.' Compared with the OECD's last full outlook in December, growth prospects for almost all countries have been downgraded, said Pereira. 'Weakened economic prospects will be felt around the world, with almost no exception,' the OECD said. While the Trump administration appeals a court's decision to block many wide-ranging tariffs, the small businesses that brought the case are seeking to keep the tariffs from going back into effect as the legal battle plays out. From Bloomberg Read more here. From Reuters: Read more here. Trump has posted to his Truth Social account calling Chinese leader Xi Jinging "Hard to make a deal with". Posting at 2:30am Wednesday morning, Washington time, the post pulls into focus the tight nature of negotiations between the world's two largest economies. The post in full: Trump's statement follows a series of back-and-forth claims from both the US and China that each country has violated the tentative trade agreement currently in place. Since the May 12 agreement in Geneva, both countries have agreed to a 90-day truce in the contentious trade war that rocked the global economy. Trump and Xi are expected to talk directly to each other later in the week, according to White House press secretary Karoline Leavitt. The White House on Tuesday confirmed that the US has sent a letter to trade partners seeking to speed up talks ahead of a self-imposed July deadline. Though Reuters reported earlier this week that the administration asked for countries' best offers by Wednesday, White House press secretary Karoline Leavitt on Tuesday framed the letter, which she said was sent by the US Trade Representative, as a "friendly reminder." "I can confirm the merits in the content of the letter," she said, per Bloomberg. She sadded: "USTR sent this letter to all of our trading partners, just to give them a friendly reminder that the deadline is coming up, and they are in talks. The president expects good deals, and we are on track for that." Bloomberg cited a "recipient of the letter" who said it was "framed as a way to steer ongoing talks rather than an ultimatum. President Trump will sign an executive order doubling duties on steel and aluminum imports to 50%, the White House said Tuesday. Trump first announced plans to up the duties last Friday during an event with steelworkers in Pennsylvania. White House press secretary Karoline Leavitt didn't confirm the exact timing of the escalation Tuesday. Trump's most sweeping "reciprocal" tariffs are locked in legal limbo. But duties on specific sectors or commodities, like those on steel and aluminum, are so far unaffected because Trump has imposed them under a different legal authority. President Trump and his team have touted for weeks that deals are right around the corner. But progress has been less forthcoming. Yahoo Finance Washington Correspondent Ben Werschkul reports: Read more here. The aerospace industry is urging the Trump administration to hold off on adding new tariffs, as they could risk air safety and further disrupt the supply chain. Reuters reports: A group representing major U.S. and global aeropsace companies on Tuesday warned new tariffs on imported commercial aircraft, jet engines and parts could put air safety and the supply chain at risk or have unintended consequences. The Commerce Department last month opened a "Section 232" investigation that could be used as a basis for even higher tariffs on imported planes, engines and parts. The Aerospace Industries Association, which represents Boeing, Airbus, RTX, GE Aerospace and hundreds of other companies, urged the Commerce Department to extend public comments by 90 days and impose no new tariffs for at least 180 days. They urged further consultation with industry on "any Section 232 tariffs to ensure they accurately reflect national security concerns and do not put the supply chain and aviation safety at risk." Read more here. A new survey out Tuesday by insurance brokerage Gallagher showed that a majority of US business owners see tariffs as a top risk to be worried about. Reuters reports that President Trump's trade wars have already cost companies more than $34 billion in lost sales and higher costs, according to an analysis of corporate disclosures. "Our survey showed supply chain disruptions were a concern to business owners, with 90% reporting they are concerned about the impact of tariffs on their businesses," Gallagher CEO J. Patrick Gallagher told Reuters. "Global supply chains, strained by geopolitical conflicts and extreme weather events, remain vulnerable to disruptions." The findings come as tensions with China and other key trading partners ratcheted up again after President Trump threatened to double steel and aluminum tariffs. Also on Tuesday, the OECD warned of slowing growth due to trade disputes. Read more here. Taiwan's government said on Tuesday that it is continuing to "communicate closely" with the US in order to reach a trade deal, but cannot give any more information at this point on the negotiations. Reuters reports: Read more here. Consumer-facing multinationals are moving their China supply chains as trade wars continue to add uncertainty for businesses. Yahoo Finance's Brian Sozzi broke down what he heard from three major companies: Read more here. President Trump's tariffs on steel and aluminum imports are set to double starting Wednesday. That could present a problem for the only deal the US has so far agreed to during its 90-day "reciprocal" tariff pause. From Bloomberg: Under that "economic prosperity agreement," US tariffs on UK metal imports are set to be slashed to zero. But Starmer's spokesman said he doesn't know whether the looming doubling of steel levies will apply to UK imports while the two sides work on implementing the deal. Read more here. Yahoo Finance's senior reporter Hamza Shaban looks at how the American-made company Boeing has become a tool in the US government's trade negotiations: Read more here. A survey conducted by Reuters has revealed that Trump's tariffs will likely cause a slowdown in US home construction. Reuters reports: Read more here Yahoo Finance's senior legal reporter Alexis Keenan looks at what could make or break President Trump's "Liberation Day" tariffs. Read more here. Traders are taking advantage of Trump's trade war and looking at how to ride tariff-driven sell-offs and rallies. Bloomberg News reports: Read more here. Reuters reports in an exclusive: Read more here. The Bank of Japan Governor Kazuo Ueda said that the country's economy can take the hit from US tariffs and sustain a cycle of rising inflation accompanied by wage growth, indicating the banks readiness to raise interest rates further. Reuters reports: Read more here. President Donald Trump is eager to land more trade deals, but talks with China and the EU are stalling amid communication breakdowns and renewed tariff threats. Bloomberg News reports: Read more here. Reuters reports: Read more here. Global economic growth is weakening faster than expected, the the Organisation for Economic Cooperation and Development (OECD) said on Tuesday, as Trump's trade war starts to take a toll on the US economy. The OECD cut its outlook for global output for the US and most of the G20 leading economies and warned that agreements to ease trade barriers are key to reviving investment and avoid higher prices. Global growth is expected to be 2.9% in 2025 and 2026, the OECD said in its latest full outlook. The figure has exceeded 3% every year since 2020, when output plunged because of the pandemic. The OECD said that US growth will slow sharply, falling from 2.8% in 2024 to 1.6% in 2025 and 1.5% next year. The OECD said that the Federal Reserve likely won't cut rates this year because inflation will remain too high. The latest assessment represents a downgrade to its March interim forecasts, which preceded Trump's 'Liberation Day' tariff announcements on April 2. Even then, the OECD warned of a 'significant toll' stemming from the levies and associated uncertainty over policy. The OECD also cut 2025 forecast for G20 countries, which include China, France, Japan, India, UK, and South Africa. Álvaro Pereira, the OECD's chief economist, said countries need to strike deals that would lower trade barriers. 'Otherwise, the growth impact is going to be quite significant,' he said. 'This has massive repercussions for everyone.' Compared with the OECD's last full outlook in December, growth prospects for almost all countries have been downgraded, said Pereira. 'Weakened economic prospects will be felt around the world, with almost no exception,' the OECD said. While the Trump administration appeals a court's decision to block many wide-ranging tariffs, the small businesses that brought the case are seeking to keep the tariffs from going back into effect as the legal battle plays out. From Bloomberg Read more here. From Reuters: Read more here.
Yahoo
6 days ago
- Business
- Yahoo
Trump tariffs live updates: Trump calls China's Xi "Extremely hard to make a deal with"
President Trump has doubled tariffs on steel and aluminum imports from 25% to 50% as of 12:01 a.m. Washington time, Wednesday, June 4, according to a proclamation he signed on Tuesday. The United Kingdom is the only country exempt from the hike. Meanwhile, Trump's trade war is causing the global economy to slow, with growth now heading for its weakest pace since the COVID-19 pandemic, the OECD warned on Tuesday. The OECD cut its forecasts for most G20 economies and warned that easing trade tensions is key to boosting investment and keeping prices stable. Álvaro Pereira, the OECD's chief economist, said countries need to lower trade barriers. 'Otherwise, the growth impact is going to be quite significant,' he said. 'This has massive repercussions for everyone.' The warning comes as the US is pushing countries to speed up trade talks. The White House confirmed Tuesday that the US had sent a letter to partners as a "friendly reminder" that Trump's self-imposed 90-day pause on sweeping "reciprocal" tariffs is set to expire in early July. White House advisers have for weeks promised trade deals in the "not-too-distant future," with the only announced agreement so far coming with the United Kingdom. Meanwhile, US tensions with two key trade partners amped up on Monday after Trump promised last weekend to double tariffs on steel and aluminum. The White House said he will sign an order to do so on Tuesday. China responded to Trump's claim on Friday that it has "totally violated its agreement" with the US, in turn accusing the US of breaching the agreement and vowing to protect its interests. The US-China detente — reached earlier this month, when each country eased sky-high tariffs on the other — looks more fragile amid both trade-related and other tensions. US trade talks with the EU have also come back into focus as an early-July deadline also looms for Trump's 50% tariffs on imports from the bloc. The EU on Monday said it "strongly" regrets Trump's hike on steel and aluminum imports, saying it undermines planned trade talks. Meanwhile, Trump's most sweeping tariffs face legal uncertainty after a federal appeals court allowed the tariffs to temporarily stay in effect, a day after the US Court of International Trade blocked their implementation, deeming the method used to enact them "unlawful." Administration officials also hinted that court rulings would not be the final say. Yahoo Finance's Ben Werschkul has an overview of the other maneuvers Trump could pursue. Here are the latest updates as the policy reverberates around the world. Trump has posted to his Truth Social account calling Chinese leader Xi Jinging "Hard to make a deal with". Posting at 2:30am Wednesday morning, Washington time, the post pulls into focus the tight nature of negotiations between the world's two largest economies. The post in full: The White House on Tuesday confirmed that the US has sent a letter to trade partners seeking to speed up talks ahead of a self-imposed July deadline. Though Reuters reported earlier this week that the administration asked for countries' best offers by Wednesday, White House press secretary Karoline Leavitt on Tuesday framed the letter, which she said was sent by the US Trade Representative, as a "friendly reminder." "I can confirm the merits in the content of the letter," she said, per Bloomberg. She sadded: "USTR sent this letter to all of our trading partners, just to give them a friendly reminder that the deadline is coming up, and they are in talks. The president expects good deals, and we are on track for that." Bloomberg cited a "recipient of the letter" who said it was "framed as a way to steer ongoing talks rather than an ultimatum. President Trump will sign an executive order doubling duties on steel and aluminum imports to 50%, the White House said Tuesday. Trump first announced plans to up the duties last Friday during an event with steelworkers in Pennsylvania. White House press secretary Karoline Leavitt didn't confirm the exact timing of the escalation Tuesday. Trump's most sweeping "reciprocal" tariffs are locked in legal limbo. But duties on specific sectors or commodities, like those on steel and aluminum, are so far unaffected because Trump has imposed them under a different legal authority. President Trump and his team have touted for weeks that deals are right around the corner. But progress has been less forthcoming. Yahoo Finance Washington Correspondent Ben Werschkul reports: Read more here. The aerospace industry is urging the Trump administration to hold off on adding new tariffs, as they could risk air safety and further disrupt the supply chain. Reuters reports: A group representing major U.S. and global aeropsace companies on Tuesday warned new tariffs on imported commercial aircraft, jet engines and parts could put air safety and the supply chain at risk or have unintended consequences. The Commerce Department last month opened a "Section 232" investigation that could be used as a basis for even higher tariffs on imported planes, engines and parts. The Aerospace Industries Association, which represents Boeing, Airbus, RTX, GE Aerospace and hundreds of other companies, urged the Commerce Department to extend public comments by 90 days and impose no new tariffs for at least 180 days. They urged further consultation with industry on "any Section 232 tariffs to ensure they accurately reflect national security concerns and do not put the supply chain and aviation safety at risk." Read more here. A new survey out Tuesday by insurance brokerage Gallagher showed that a majority of US business owners see tariffs as a top risk to be worried about. Reuters reports that President Trump's trade wars have already cost companies more than $34 billion in lost sales and higher costs, according to an analysis of corporate disclosures. "Our survey showed supply chain disruptions were a concern to business owners, with 90% reporting they are concerned about the impact of tariffs on their businesses," Gallagher CEO J. Patrick Gallagher told Reuters. "Global supply chains, strained by geopolitical conflicts and extreme weather events, remain vulnerable to disruptions." The findings come as tensions with China and other key trading partners ratcheted up again after President Trump threatened to double steel and aluminum tariffs. Also on Tuesday, the OECD warned of slowing growth due to trade disputes. Read more here. Taiwan's government said on Tuesday that it is continuing to "communicate closely" with the US in order to reach a trade deal, but cannot give any more information at this point on the negotiations. Reuters reports: Read more here. Consumer-facing multinationals are moving their China supply chains as trade wars continue to add uncertainty for businesses. Yahoo Finance's Brian Sozzi broke down what he heard from three major companies: Read more here. President Trump's tariffs on steel and aluminum imports are set to double starting Wednesday. That could present a problem for the only deal the US has so far agreed to during its 90-day "reciprocal" tariff pause. From Bloomberg: Under that "economic prosperity agreement," US tariffs on UK metal imports are set to be slashed to zero. But Starmer's spokesman said he doesn't know whether the looming doubling of steel levies will apply to UK imports while the two sides work on implementing the deal. Read more here. Yahoo Finance's senior reporter Hamza Shaban looks at how the American-made company Boeing has become a tool in the US government's trade negotiations: Read more here. A survey conducted by Reuters has revealed that Trump's tariffs will likely cause a slowdown in US home construction. Reuters reports: Read more here Yahoo Finance's senior legal reporter Alexis Keenan looks at what could make or break President Trump's "Liberation Day" tariffs. Read more here. Traders are taking advantage of Trump's trade war and looking at how to ride tariff-driven sell-offs and rallies. Bloomberg News reports: Read more here. Reuters reports in an exclusive: Read more here. The Bank of Japan Governor Kazuo Ueda said that the country's economy can take the hit from US tariffs and sustain a cycle of rising inflation accompanied by wage growth, indicating the banks readiness to raise interest rates further. Reuters reports: Read more here. President Donald Trump is eager to land more trade deals, but talks with China and the EU are stalling amid communication breakdowns and renewed tariff threats. Bloomberg News reports: Read more here. Reuters reports: Read more here. Global economic growth is weakening faster than expected, the the Organisation for Economic Cooperation and Development (OECD) said on Tuesday, as Trump's trade war starts to take a toll on the US economy. The OECD cut its outlook for global output for the US and most of the G20 leading economies and warned that agreements to ease trade barriers are key to reviving investment and avoid higher prices. Global growth is expected to be 2.9% in 2025 and 2026, the OECD said in its latest full outlook. The figure has exceeded 3% every year since 2020, when output plunged because of the pandemic. The OECD said that US growth will slow sharply, falling from 2.8% in 2024 to 1.6% in 2025 and 1.5% next year. The OECD said that the Federal Reserve likely won't cut rates this year because inflation will remain too high. The latest assessment represents a downgrade to its March interim forecasts, which preceded Trump's 'Liberation Day' tariff announcements on April 2. Even then, the OECD warned of a 'significant toll' stemming from the levies and associated uncertainty over policy. The OECD also cut 2025 forecast for G20 countries, which include China, France, Japan, India, UK, and South Africa. Álvaro Pereira, the OECD's chief economist, said countries need to strike deals that would lower trade barriers. 'Otherwise, the growth impact is going to be quite significant,' he said. 'This has massive repercussions for everyone.' Compared with the OECD's last full outlook in December, growth prospects for almost all countries have been downgraded, said Pereira. 'Weakened economic prospects will be felt around the world, with almost no exception,' the OECD said. While the Trump administration appeals a court's decision to block many wide-ranging tariffs, the small businesses that brought the case are seeking to keep the tariffs from going back into effect as the legal battle plays out. From Bloomberg Read more here. From Reuters: Read more here. Trump has posted to his Truth Social account calling Chinese leader Xi Jinging "Hard to make a deal with". Posting at 2:30am Wednesday morning, Washington time, the post pulls into focus the tight nature of negotiations between the world's two largest economies. The post in full: The White House on Tuesday confirmed that the US has sent a letter to trade partners seeking to speed up talks ahead of a self-imposed July deadline. Though Reuters reported earlier this week that the administration asked for countries' best offers by Wednesday, White House press secretary Karoline Leavitt on Tuesday framed the letter, which she said was sent by the US Trade Representative, as a "friendly reminder." "I can confirm the merits in the content of the letter," she said, per Bloomberg. She sadded: "USTR sent this letter to all of our trading partners, just to give them a friendly reminder that the deadline is coming up, and they are in talks. The president expects good deals, and we are on track for that." Bloomberg cited a "recipient of the letter" who said it was "framed as a way to steer ongoing talks rather than an ultimatum. President Trump will sign an executive order doubling duties on steel and aluminum imports to 50%, the White House said Tuesday. Trump first announced plans to up the duties last Friday during an event with steelworkers in Pennsylvania. White House press secretary Karoline Leavitt didn't confirm the exact timing of the escalation Tuesday. Trump's most sweeping "reciprocal" tariffs are locked in legal limbo. But duties on specific sectors or commodities, like those on steel and aluminum, are so far unaffected because Trump has imposed them under a different legal authority. President Trump and his team have touted for weeks that deals are right around the corner. But progress has been less forthcoming. Yahoo Finance Washington Correspondent Ben Werschkul reports: Read more here. The aerospace industry is urging the Trump administration to hold off on adding new tariffs, as they could risk air safety and further disrupt the supply chain. Reuters reports: A group representing major U.S. and global aeropsace companies on Tuesday warned new tariffs on imported commercial aircraft, jet engines and parts could put air safety and the supply chain at risk or have unintended consequences. The Commerce Department last month opened a "Section 232" investigation that could be used as a basis for even higher tariffs on imported planes, engines and parts. The Aerospace Industries Association, which represents Boeing, Airbus, RTX, GE Aerospace and hundreds of other companies, urged the Commerce Department to extend public comments by 90 days and impose no new tariffs for at least 180 days. They urged further consultation with industry on "any Section 232 tariffs to ensure they accurately reflect national security concerns and do not put the supply chain and aviation safety at risk." Read more here. A new survey out Tuesday by insurance brokerage Gallagher showed that a majority of US business owners see tariffs as a top risk to be worried about. Reuters reports that President Trump's trade wars have already cost companies more than $34 billion in lost sales and higher costs, according to an analysis of corporate disclosures. "Our survey showed supply chain disruptions were a concern to business owners, with 90% reporting they are concerned about the impact of tariffs on their businesses," Gallagher CEO J. Patrick Gallagher told Reuters. "Global supply chains, strained by geopolitical conflicts and extreme weather events, remain vulnerable to disruptions." The findings come as tensions with China and other key trading partners ratcheted up again after President Trump threatened to double steel and aluminum tariffs. Also on Tuesday, the OECD warned of slowing growth due to trade disputes. Read more here. Taiwan's government said on Tuesday that it is continuing to "communicate closely" with the US in order to reach a trade deal, but cannot give any more information at this point on the negotiations. Reuters reports: Read more here. Consumer-facing multinationals are moving their China supply chains as trade wars continue to add uncertainty for businesses. Yahoo Finance's Brian Sozzi broke down what he heard from three major companies: Read more here. President Trump's tariffs on steel and aluminum imports are set to double starting Wednesday. That could present a problem for the only deal the US has so far agreed to during its 90-day "reciprocal" tariff pause. From Bloomberg: Under that "economic prosperity agreement," US tariffs on UK metal imports are set to be slashed to zero. But Starmer's spokesman said he doesn't know whether the looming doubling of steel levies will apply to UK imports while the two sides work on implementing the deal. Read more here. Yahoo Finance's senior reporter Hamza Shaban looks at how the American-made company Boeing has become a tool in the US government's trade negotiations: Read more here. A survey conducted by Reuters has revealed that Trump's tariffs will likely cause a slowdown in US home construction. Reuters reports: Read more here Yahoo Finance's senior legal reporter Alexis Keenan looks at what could make or break President Trump's "Liberation Day" tariffs. Read more here. Traders are taking advantage of Trump's trade war and looking at how to ride tariff-driven sell-offs and rallies. Bloomberg News reports: Read more here. Reuters reports in an exclusive: Read more here. The Bank of Japan Governor Kazuo Ueda said that the country's economy can take the hit from US tariffs and sustain a cycle of rising inflation accompanied by wage growth, indicating the banks readiness to raise interest rates further. Reuters reports: Read more here. President Donald Trump is eager to land more trade deals, but talks with China and the EU are stalling amid communication breakdowns and renewed tariff threats. Bloomberg News reports: Read more here. Reuters reports: Read more here. Global economic growth is weakening faster than expected, the the Organisation for Economic Cooperation and Development (OECD) said on Tuesday, as Trump's trade war starts to take a toll on the US economy. The OECD cut its outlook for global output for the US and most of the G20 leading economies and warned that agreements to ease trade barriers are key to reviving investment and avoid higher prices. Global growth is expected to be 2.9% in 2025 and 2026, the OECD said in its latest full outlook. The figure has exceeded 3% every year since 2020, when output plunged because of the pandemic. The OECD said that US growth will slow sharply, falling from 2.8% in 2024 to 1.6% in 2025 and 1.5% next year. The OECD said that the Federal Reserve likely won't cut rates this year because inflation will remain too high. The latest assessment represents a downgrade to its March interim forecasts, which preceded Trump's 'Liberation Day' tariff announcements on April 2. Even then, the OECD warned of a 'significant toll' stemming from the levies and associated uncertainty over policy. The OECD also cut 2025 forecast for G20 countries, which include China, France, Japan, India, UK, and South Africa. Álvaro Pereira, the OECD's chief economist, said countries need to strike deals that would lower trade barriers. 'Otherwise, the growth impact is going to be quite significant,' he said. 'This has massive repercussions for everyone.' Compared with the OECD's last full outlook in December, growth prospects for almost all countries have been downgraded, said Pereira. 'Weakened economic prospects will be felt around the world, with almost no exception,' the OECD said. While the Trump administration appeals a court's decision to block many wide-ranging tariffs, the small businesses that brought the case are seeking to keep the tariffs from going back into effect as the legal battle plays out. From Bloomberg Read more here. From Reuters: Read more here.
CNN
6 days ago
- Business
- CNN
How can countries protect themselves from fallout due to Trump's tarrifs? Economic expert weighs in
CNN's Zain Asher speaks with Álvaro Pereira, the chief economist and G20 finance deputy of the OECD, about their 2025 economic growth forecast for America.
CNN
6 days ago
- Business
- CNN
How can countries protect themselves from fallout due to Trump's tarrifs? Economic expert weighs in
CNN's Zain Asher speaks with Álvaro Pereira, the chief economist and G20 finance deputy of the OECD, about their 2025 economic growth forecast for America.
Yahoo
6 days ago
- Business
- Yahoo
Global Economic Growth Will Be Blunted By US Tariffs, OECD Says
The world economy will take a significant hit over the next 18 months—and tariffs are a major culprit, according to newly released forecasting from the Organization for Economic Cooperation and Development (OECD). In its June report released this week, the intergovernmental organization with 38 member countries projected that global economic growth would fall from 3.3 percent in 2024 to 2.9 percent in 2025 and 2026, though previous projections put it at 3.1 percent this year and 3 percent next year. More from Sourcing Journal Flexport Debuts Tariff Simulator as Customers 'Need Clarity on Costs' US Pushes Global Partners for Trade Deals by Wednesday Trade Truce Crumbles as China Says US Violated Terms 'Weakened economic prospects will be felt around the world, with almost no exception,' wrote Álvaro Pereira, OECD's chief economist. In the U.S., growth outlook was amended to 1.6 percent in 2025 and 1.5 percent in 2026—a notable downward revision from just several months ago. OECD predicted in March that the U.S. economy would expand by 2.2 percent this year. 'In the past few months, we have seen a significant increase in trade barriers as well as in economic and trade policy uncertainty,' Pereira wrote. 'This sharp rise in uncertainty has negatively impacted business and consumer confidence and is set to hold back trade and investment.' The slowdown in trade is expected to impact jobs and incomes—a perfect storm when coupled with 'stubbornly sticky' service price inflation and slightly elevated product pricing. According to OECD, trade protectionism is underscoring inflationary pressures, with countries that stand to be most impacted by President Donald Trump's tariffs facing a longer road to recovery as inflation cools to central bank target levels in 2026 across most markets. Annual headline inflation across the G20 economies—which represent 85 percent of global GDP and 75 percent of international trade—is expected to cool, decreasing from 6.2 percent to 3.6 percent this year and moving downward to 3.2 percent in 2026. But the U.S. bucks the trend, with annual inflation projected to rise to just under 4 percent by the end of this year. It will remain above target in 2026, OECD said. Predictably, economic slowdown is concentrated in the U.S., Canada and Mexico—which have been the subject of much tariff-focused debate—with China and other global economies poised to experience more tempered downward adjustments. The group said its forecasting assumes that mid-May tariff rates will remain in place (though the Trump administration has faced legal challenges to its authority to impose the duties in recent days). While the only seeming certainty in the administration's trade policy is volatility, with changes occurring daily if not weekly, OECD forecasted that trade growth across the world would slow 'substantially' over the course of the next two years as businesses pull back on investment due to a lack of surety. There has been a 'significant front-loading' of goods ahead of the scheduled tariff increases that is not indicative of future trade volume. 'Higher bilateral tariff rates are a drag on global activity and add to trade costs, raising the price of covered imported final goods for consumers and intermediate inputs for businesses, particularly in countries where tariffs are imposed,' the research said. 'The initial effect on prices is likely to be felt close to the time of the tariffs being implemented, with the full impacts on output growth taking longer to materialize.' The new duties introduced by the Trump administration up to mid-May are estimated to have raised forecasted tariff rates on U.S. merchandise imports to a whopping 15.4 percent, up from just over 2 percent last year—the highest rate since 1938. Combined with retaliatory measures imposed by other countries like China (and to a more limited extent, Canada), over 2 percent of world GDP is now facing higher duties. The global reverberations for industry and trade could be significant, given that the U.S. is such a critical export market for many countries. Seventy-five percent of goods exports from Mexico and Canada enter the U.S. market, while Japan (19 percent), China (13 percent) and Germany (10 percent) all face significant exposure in the months ahead. As such, Pereira said avoiding 'further trade fragmentation' and the erecting of new barriers to global trade is 'by far the most important policy priority.' 'Agreements to ease trade tensions and lower tariffs and other trade barriers will be instrumental to revive growth and investment and avoid rising prices,' he added.
