Scholar: China Prepared for Trade Turbulence
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
Trump's Tariff Date Arrives After a 90-Day Rollercoaster
(Bloomberg) -- The world economy, beset with uncertainty for three months over Donald Trump's on-again-off-again tariffs, is about to get more clarity as the US president's deadline for trade deals arrives on Wednesday. Foreign Buyers Swoop on Cape Town Homes, Pricing Out Locals Trump's Gilded Design Style May Be Gaudy. But Don't Call it 'Rococo.' Massachusetts to Follow NYC in Making Landlords Pay Broker Fees NYC Commutes Resume After Midtown Bus Terminal Crash Chaos What Gothenburg Got Out of Congestion Pricing That's when the 90-day reprieve from Trump's so-called 'reciprocal' levies ends, clearing the way for the protectionism he thinks will narrow US trade deficits and spark a manufacturing revival. The wielding of unilateral tariffs is upending a system that for decades encouraged lower barriers to commerce under rules enforced by the World Trade Organization. The US president isn't just ripping up the old playbook for trade alliances. Trump's tariffs will also help fill Treasury coffers at a time when investors are worried about the sustainability of the nation's debt — particularly after Congress sealed much of the president's economic agenda in a $3.4 trillion tax cut and spending package. 'The money will start to come into the United States on Aug. 1,' Trump said, referring to the date he's declared for the start of some new tariffs. Heading into the final days before the July 9 deadline, negotiators are scrambling to come up with trade pacts. Treasury Secretary Scott Bessent has called trade one of three pillars of Trump's agenda, which along with tax cuts and deregulation is aimed at unleashing investment, job growth and innovation. So far, the US economy is holding up, hiring is healthy, and inflation has remained tame. But the Federal Reserve is wary about tariffs despite pressure from Trump to lower rates, and wants to see how they feed through to output in the next few months. Trump's second-term rush to overhaul US trade policy has also fueled uncertainty for markets and corporate supply-chain managers trying to game out the effects on production, inventories, hiring, inflation and consumer demand. That sort of routine planning is hard enough without factors like tariffs that are moving forward one day, and potentially gone the next. What Bloomberg Economics Says: 'It's likely Trump will seek to escalate his threats against trade partners over the coming days to increase leverage in talks, as he did with Japan.' —Adam Farrar and Maeva Cousin. For full analysis, click here Trump is famous for saying that 'tariffs' is his favorite word. Yet the economic fallout may blindside a president who incorrectly asserts that trading partners directly pay the customs duties he imposes. In fact, the burden most often falls on American importers, who must contend with tighter profit margins and weigh up whether to raise prices on consumers, seek discounts from their foreign suppliers, or a combination of both. Bloomberg Economics estimates that if reciprocal tariffs are raised to their threatened levels on July 9, the average duties on all US imports could climb to about 20% from near 3% before Trump's inauguration in January. That would add to multiple risks to the US outlook. Elsewhere in the coming week, the Fed's latest minutes, a possible rate cut in Australia, and economic growth numbers from China to the UK will be among the highlights. A summit of BRICS leaders also takes place from Sunday. Click here for what happened in the past week, and below is our wrap of what's coming up in the global economy. US and Canada The US calendar lightens up considerably following the June jobs report that appeared to take pressure off the Fed to lower rates when it meets late this month. Job growth exceeded forecasts on an unusual surge in public education employment, while the jobless rate declined. Economists on Wednesday will parse minutes of the Fed's June policy meeting for indications on whether officials are closer to lowering rates. Regional presidents Alberto Musalem and Mary Daly are among the officials slated to speak about the economy a day later. Weekly jobless claims data on Thursday are expected to show employers are still reticent to cut staffing levels. At the same time, an elevated number of continuing claims suggests the unemployed are having a tougher time finding another job. In Canada, figures for June are likely to show a further weakening of the labor market after the unemployment rate ticked up to 7% the previous month. Tariffs are curbing businesses' appetite to hire, especially in manufacturing and other trade-exposed sectors. A report on return arrivals to the country in June is expected to reveal a continued decline in cross-border tourism. For more, read Bloomberg Economics' full Week Ahead for the US Asia The week is packed with central bank decisions and key macro indicators that will help define the region's second-half trajectory. Monetary policy takes center stage in Australia, New Zealand, South Korea and Malaysia, where officials are expected to weigh recent inflation trends against slowing growth momentum. Meanwhile, China's inflation will offer fresh clues on the region's manufacturing pulse and domestic demand conditions, after Vietnam on Saturday reported a surprise surge in growth. The Reserve Bank of Australia is expected to lower its cash rate to 3.6% on Tuesday, marking a third consecutive cut as inflation eases. The decision will be preceded by the NAB business confidence survey and ANZ job ads, both of which will help assess how sentiment and hiring intentions are tracking. On Wednesday, RBA Deputy Governor Andrew Hauser gives a speech in Sydney on 'Australian Macroeconomic Thought.' The same day, the Reserve Bank of New Zealand is expected to keep its policy rate unchanged at 3.25%, while Malaysia's Bank Negara is anticipated to hold its overnight policy rate steady on Wednesday. A day later, the Bank of Korea is seen holding the base rate at 2.50% as it weighs the case for buffering the economy from the impact of Trump's tariffs against a desire to avoid fueling soaring housing prices in the capital. China releases inflation data on Wednesday, with price pressures likely to remain subdued, while loans and money supply indicators will be closely watched during the week. Japan publishes labor cash earnings on Monday as policymakers look for indications that rising pay is feeding into demand-led price gains. Bank lending, current account figures and the Eco Watchers Survey are also due. Elsewhere, the Philippines publishes its employment report for May, Taiwan releases June CPI and trade data, and Indonesia updates on foreign reserves and consumer confidence. For more, read Bloomberg Economics' full Week Ahead for Asia Europe, Middle East, Africa Among this week's highlights, UK GDP for May will be released on Friday, with a small increase predicted by economists after a drop in April that was the biggest drop since 2023. The Bank of England publishes its latest financial stability report on Wednesday, with a press conference presented by Governor Andrew Bailey. Manufacturing-related data from around the euro zone showing the impact of Trump's tariff policies will draw attention following Friday's release showing a much-bigger-than-anticipated drop in German factory orders in May. That country's industrial production numbers are due on Monday, followed on Tuesday by exports both there and in France. Output in Italy will be revealed on Wednesday. Fewer European Central Bank appearances are scheduled, but Bundesbank President Joachim Nagel and Executive Board member Piero Cipollone will be among them. Eurozone finance ministers will meet at the start of the week, with the agenda to include the exchange rate at which Bulgaria is supposed switch to the euro. Officials are also set to seal legislative acts to finalize that country's new membership of the single currency starting in January. Turning to the Nordics, Swedish inflation is due on Monday, followed by house price numbers on Tuesday and the monthly GDP indicator on Wednesday. That's also when Norway and Denmark publish consumer-price data. Russian policymakers will watch for evidence that inflation is continuing to ease when June numbers are published on Wednesday. The Bank of Russia cited slowing price growth in its decision to cut borrowing costs last month for the first time in nearly three years. Deputy Governor Alexey Zabotkin said inflation data will influence whether officials consider a larger than one percentage-point cut in the key rate at its July meeting. For more, read Bloomberg Economics' full Week Ahead for Latin America A few monetary meetings are scheduled throughout the wider region: Israel's central bank is set to hold rates for a 12th consecutive time, with policymakers waiting to see if inflation returns to the target range after the shekel rally that followed a ceasefire with Iran. Romania's decision on Tuesday and is expected to see borrowing costs on hold, with officials concerned that recent fiscal changes may trigger a new spike in inflation and dampen economic growth. Serbian policymakers will reveal their decision on Thursday after keeping the rate unchanged at 5.75% since September. The same day, Egypt's central bank decision is due following two cuts in as many months, aimed at boosting economic growth. Inflation accelerated for a third month in May, potentially giving the officials pause before lowering the deposit rate from its current 24%. Latin America It's inflation week in Latin America, with four of the region's five major economies set to publish price data for June. Colombia kicks off proceedings on Monday, with expectations that annual inflation slowed below 5% for the month. That would mark the lowest reading since October 2021, although price increases remain above the central bank's target range. Chile's data on Tuesday is expected to show little change or perhaps a slight uptick in annual inflation from May, when consumer prices rose 4.4%. While that too remains above the central bank's target, policymakers signaled last month that they may soon resume monetary easing if global economic uncertainty remains limited. Mexico will release inflation data on Wednesday, a day before policymakers publish the minutes of their decision to cut rates by a half-point for the fourth consecutive time in late June. Analysts expect consumer-price increases to cool slightly, to 4.3%, from May. The minutes will offer clues into how they view headwinds facing an economy that narrowly missed tipping into recession early this year, and provide more hints on the likely pace of future easing. Brazil, the region's largest economy, publishes its data on Thursday, with Bloomberg Economics forecasting that it will mark the first breach of the country's new continuous inflation target. The central bank hiked rates again last month in an attempt to tamp down inflation that ran above 5% in May. Peru's policymakers will hold their latest rate decision Wednesday, with Bloomberg Economics expecting a quarter-point cut, to 4.25%, after they held steady at their last meeting. For more, read Bloomberg Economics' full Week Ahead for Latin America --With assistance from Swati Pandey, Derek Decloet, Vince Golle, Monique Vanek, Travis Waldron, Mark Evans and Piotr Skolimowski. SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too For Brazil's Criminals, Coffee Beans Are the Target America's Top Consumer-Sentiment Economist Is Worried Sperm Freezing Is a New Hot Market for Startups Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
3 hours ago
- Yahoo
Modi and Milei meet in Argentina ahead of BRICS summit
Indian Prime Minister Narendra Modi met Argentine President Javier Milei in Buenos Aires on Saturday, urging the expansion of New Delhi's preferential trade deal with South America's Mercosur bloc. The bilateral talks with Milei are the latest in Modi's whistle-stop diplomatic tour culminating in the summit of BRICS emerging economies starting on Sunday in Brazil. Diplomats from both countries at the meeting, which included a lunch, decided to "deepen bilateral relations and commercial ties," according to a statement from the Argentine presidency. Indian foreign ministry diplomat Periasamy Kumaran told reporters Modi "requested Argentina's support in expanding the India-Mercosur preferential trade agreement." The Mercosur regional trade bloc, comprising Argentina, Brazil, Paraguay, Uruguay and Bolivia, is seeking closer ties with Asian economies in the face of Trump's global trade war. "The two leaders discussed the necessity of diversifying and expanding bilateral trade" in sectors including defence, technology and health, said Kumaran. They also touched upon cooperation in the energy sector, including gas and petrol, as well as lithium, a key mineral for the clean energy transition. Argentina is the world's fifth largest producer of lithium, according to the US Geological Survey. "Excellent meeting with President Javier Milei of Argentina," Modi wrote on X of the leaders' second bilateral talks. "We have covered significant ground in our bilateral relations, but we agree that the journey ahead is even more promising!" India was Argentina's fifth largest trading partner in 2024, with bilateral trade up 33 percent, according to figures from the Indian external affairs ministry. tev/nn/mr/ib/aks/mlm 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
3 hours ago
- Yahoo
Here's How Much a Meal at McDonald's Costs in the US Compared to Asia
While American diners may be a bit miffed at the recent price hikes common to ordering a meal at McDonald's compared to times past, inflation appears to be taking a bite out of fast-food budgets worldwide, Asia included. Read Next: Find Out: According to The Washington Post, McDonald's menu prices ticked upward by about 40%, on average, during the five-year period spanning 2019 through 2024. But what about nations such as Japan, China and South Korea? A brief comparison of some menu item prices, notably the staple Big Mac combo, follows. If you're keen to visit the golden arches in the land of the rising sun, you're going to spend a whole let less than you might if you were to do so stateside. A Big Mac meal in Japan will set you back 750 yen, or about $5.20, while it's priced at $10.19 in the United States. Meanwhile, the price differential is about the same when comparing two close cousins — the Spicy Crispy Chicken meal (770 yen, or $5.34) from Japan set against the Deluxe Spicy McCrispy meal, which comes in at $10.29. If breakfast is more your bag, an Egg McMuffin combo costs $7.69 stateside, versus $2.77 in Japan. If you're visiting or residing in China, it's sometimes more difficult to draw direct comparisons given the difference in regional menus between U.S. restaurants and their Chinese counterparts. Nonethless, the staple Big Mac sandwich will set you back $3.47 in China (as of 2024, per an infographic distributed by The Economist), versus $5.89 in the United States. One reddit user posting in July 2024 claimed that a double cheeseburger, fries, soft drink and corn cup set them back $4 USD — while a combo containing two cheeseburgers, fries and soft drink will cost you more dearly at $9.19 in the U.S. As The Korea Herald reported, McDonald's recently introduced further price increases on 20 menu items in March of this year, less than a year after price increases hit most menu items in that country in May 2024. As a result, the Big Mac meal increased by 200 won to a total of 7,400 won — or $5.47. That's still only a little more than half the price it would cost you in America. While menu prices are scarce otherwise, Shuttle Delivery services indicate a premium of 28% when delivering McDonald's food to hungry customers. A rough extrapolation suggests that a McCrispy meal in South Korea would set one back about 7,000 won (or $5.17 USD, versus $10.19 domestically) or a Quarter-Pounder with Cheese meal about 7,100 won (or $5.25, against $10.19 in the U.S.). More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 25 Places To Buy a Home If You Want It To Gain Value 8 Common Mistakes Retirees Make With Their Social Security Checks This article originally appeared on Here's How Much a Meal at McDonald's Costs in the US Compared to Asia
