US and China slash tariffs
Trump's trade chief Jamieson Greer (who gave his first European interview to Unherd last week) said yesterday it had been a 'very constructive two days'. He added: 'It's important to understand how quickly we were able to come to agreement, which reflects that perhaps the differences were not so large as maybe thought.
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Reuters
29 minutes ago
- Reuters
Asian shares track Wall Street lower, dollar rangebound
SYDNEY, Aug 6 (Reuters) - Asian shares slipped along with Wall Street on Wednesday, after weak U.S. data highlighted the damage tariffs were having on economic activity and earnings, while the dollar struggled with the drag from lower bond yields. U.S. services sector activity unexpectedly flatlined in July, data showed on Tuesday. Employment further weakened and input costs climbed by the most in nearly three years, underscoring the impact from President Donald Trump's tariff policy. Second-quarter earnings results also revealed pressure from Trump's tariff wars. Taco Bell parent Yum Brands (YUM.N), opens new tab missed expectations as steep trade duties dent consumer spending, while Caterpillar (CAT.N), opens new tab warned that U.S. tariffs would cost it up to $1.5 billion this year. "It paints a picture of a stagflationary dynamic, which although still far from truly coming to fruition, raises the risk of a toxic mix of rising joblessness and prices as tariffs filter through the U.S. economy," said Kyle Rodda, senior analyst at MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab slipped 0.2%, while Japan's Nikkei (.N225), opens new tab eked out a small 0.2% gain. Both Chinese blue chips (.CSI300), opens new tab and Hong Kong's Hang Seng index (.HSI), opens new tab were flat. Nasdaq futures fell 0.3% and S&P 500 futures eased 0.1%. Trump on Tuesday said it would announce tariffs on semiconductors and chips in the next week or so, while the U.S. would initially impose a "small tariff" on pharmaceutical imports before increasing it substantially in a year or two. He also said the U.S. was close to a trade deal with China and that he would meet his Chinese counterpart Xi Jinping before the end of the year if an agreement was struck. However, he threatened to further raise tariffs on goods from India over its Russian oil purchases. In currency markets, the dollar consolidated after sliding from two-month highs last Friday on a weak jobs report that had markets price in a near-certain chance of a Federal Reserve interest rate cut in September. The dollar index , which measures the U.S. currency against six counterparts, was flat at 98.821 and was up 0.1% this week after Friday's 1.4% fall. Fed funds futures imply a 94% chance of a rate cut next month, with at least two cuts priced in for this year, according to the CME's FedWatch. Investors are waiting for Trump's pick to fill a coming vacancy on the Federal Reserve's Board of Governors. Trump said the decision will be made soon, while ruling out Treasury Secretary Scott Bessent as a contender to replace current chief Jerome Powell, whose term ends in May 2026. Treasury yields edged up overnight after a $58 billion auction of three-year notes went poorly, but still hovered near multi-month lows. More supply will hit the market this week with $42 billion in 10-year notes on Wednesday and $25 billion in 30-year bonds on Thursday. Two-year Treasury yields rose 1 basis point to 3.7284%, having risen 3.5 bps overnight, while benchmark 10-year yields ticked up 2 bps to 4.2198%, after holding steady overnight. In commodity markets, oil prices edged up after four straight sessions of declines. U.S. crude rose 0.2% to $65.3 per barrel, while Brent was at a one-month low of $67.78 per barrel, up 0.1%. Trump said on Tuesday he will decide on whether to sanction countries who purchase Russian oil after a meeting with Russian officials scheduled for Wednesday. Spot gold prices were flat at $3,381 an ounce.
The Independent
2 hours ago
- The Independent
Trump wants to roll back $7 billion in grants for solar projects in low-income communities
The Trump administration is reportedly considering terminating a $7 billion grant program aimed at helping low- and moderate-income families install home solar panels, part of the White House's larger campaign to claw back billions in Biden-era climate spending. The Environmental Protection Agency is in the process of drafting termination letters to the 60 state agencies, nonprofit groups, and Native American tribes awarded the funding through the Solar for All initiative, part of the Biden administration's landmark 2022 climate law. The agency said Tuesday it has not made a final decision about the grants. Environmental groups say if Trump does go through with the cancellation, the effort will face legal challenges. Wiping away the grants would halt many projects before they were complete. The first Solar for All projects, efforts to install residential solar and battery storage systems for tribal communities in Montana and South Dakota, went online in October 2024. 'One in five households on reservations lack access to electricity, and this program was an opportunity to close that gap,' Cody Two Bears, the chief executive of Indigenized Energy, told The New York Times, which first reported on the cancellation effort. 'But those were just two kickoff projects to show what was coming for the next five years.' Critics of the Trump administration and climate experts said cancelling the grants, which were projected to serve about 900,000 people, would be bad public policy that hurts low-income families and the climate. 'Solar for All is laser focused on helping nearly a million low-income families afford electricity at a time when their bills keep going up,' Zealan Hoover, the EPA's former director of implementation, told The Washington Post. 'If the Trump administration is serious about energy abundance and affordability, then they should be working hard to accelerate — not terminate — these grants.' 'Solar for All means lower utility bills, many thousands of good-paying jobs and real action to address the existential threat of climate change,' Senator Bernie Sanders of Vermont, who championed the program, said in a statement on Tuesday. 'At a time when working families are getting crushed by skyrocketing energy costs and the planet is literally burning, sabotaging this program isn't just wrong — it's absolutely insane.' In March, the EPA said it was terminating a separate pot of $20 billion in climate funding, prompting a legal challenge. In April, a federal judge issued an injunction siding with grant recipients. The administration's One, Big Beautiful Bill spending package, signed in July, repealed the Greenhouse Gas Reduction Fund, the single largest portion of climate money under the Biden law, and ordered any unassigned funds back to the U.S. Treasury. There is an ongoing legal battle between grantees and the federal government over the fate of much of the IRA's climate funding. Grantees say much of the funds were legally obligated before Trump took office and immune from presidential action, while the administration claims it claw the funds back.
The Guardian
2 hours ago
- The Guardian
US judge blocks Trump officials from diverting disaster prevention grants
A federal judge blocked the Trump administration on Tuesday from diverting funds from a multibillion-dollar grant program designed to protect communities against natural disasters. US district judge Richard Stearns in Boston issued a preliminary injunction preventing the government from spending money allocated to the Building Resilient Infrastructure and Communities (Bric) program for other purposes. Twenty mostly Democratic-led states sued the administration last month, saying the Federal Emergency Management Agency (Fema) lacked power to cancel the Bric program without congressional approval. Fema is part of the Department of Homeland Security (DHS). Neither agency immediately responded to requests for comment. Created in 2018 during Donald Trump's first term, the Bric program helps state and local governments protect major infrastructure such as roads and bridges before the occurrence of floods, hurricanes and other disasters. According to the lawsuit, Fema approved about $4.5bn in grants for nearly 2,000 projects, primarily in coastal states, over the last four years. But the agency announced in April it would end the program, calling it wasteful, ineffective and politicized. Stearns said that while Fema does not appear to have since canceled grants, states should not have to wait to sue until after they lose funding, while the cancellation of new grants suggested Fema considered an eventual shutdown a fait accompli. He also said the states have shown a realistic chance of irreparable harm if the Bric program ended. 'There is an inherent public interest in ensuring that the government follows the law, and the potential hardship accruing to the states from the funds being repurposed is great,' the judge wrote. 'The Bric program is designed to protect against natural disasters and save lives,' Stearns added. 'The potential hardship to the government, in contrast, is minimal.' Led by Massachusetts and Washington, the 20 states that sued also include Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Michigan, Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont and Wisconsin. The offices of Massachusetts' and Washington's attorneys general had no immediate comment.
