It's not just Labubu dolls. Chinese brands are booming
Labubu dolls are hard to come by. Even at the giant flagship store of their maker, Pop Mart, in Shanghai, throngs of customers are told they need to wait a week or longer. The grimacing elvish creatures, which come in ' blind boxes ' that keep buyers in suspense over which one they might get, sell for as little as $US20 (about $31). But a rare variety sold for $US150,000 (about $231,000) at an auction on June 10. It is not just Chinese children trying to get their hands on the dolls; celebrities including David Beckham, a British football player, and Rihanna, an American pop star, have recently gone public with their appreciation.
The Labubu craze has sent Pop Mart's shares up by 170 per cent since the start of the year. It is one of a growing cohort of Chinese consumer brands whose popularity is surging. For decades, Chinese shoppers tended to look overseas for the latest trends in cosmetics, fashion, hospitality and more. Now they are flocking to local luxury firms, high-end make-up brands and milk-tea shops. What is more, many of these brands are gaining a devoted following abroad. Western brands should be worried.
It is an odd time for a boom among Chinese consumer products. Sputtering economic growth has caused household spending to weaken. Yet, the strain on Chinese shoppers' wallets is one of the factors propelling local brands. As consumers have become more price-sensitive, cheap but decent quality homegrown brands have thrived.
Many urban Chinese coffee drinkers, for example, have found local chains such as Cotti or Luckin just as good as Starbucks, an American company, but often half as expensive. Laopu Gold, a Chinese maker of luxury jewellery, has found success selling elegant bracelets and earrings that tend to be cheaper than those offered by Tiffany & Co, another American stalwart. Songmont, a local handbag brand, has launched a costly advertising campaign in airports across the country pitting itself against foreign competitors that are often twice as expensive, or more. Part of Pop Mart's success with Labubu dolls has come from targeting frugal spenders with high-quality, 'emotive' products, says Lina Yan of HSBC, a bank.
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The Advertiser
14 hours ago
- The Advertiser
More EVs, fewer V8s: changes coming for Aussie drivers
A hybrid Lamborghini, an electric Rolls Royce, a convoy of low-emission people-movers and a rumble of battery-powered utes "that can actually tow things" will greet thousands of attendees to Australia's latest motor show. More than 100 electric and hybrid vehicles are on display at the Melbourne EV Show over the weekend which, Future Drive Auto chief executive Ray Evans says, has become significantly easier to organise in Australia's evolving automotive market. "The changes are certainly happening fast and in the third year it takes on a different dynamic," he says. "Before we had very limited product available - obviously Tesla and BYD and a few others - but that's escalated to a point where next year there are 70 new (electric) models going to be released in Australia." In addition to more powerful electrified utes, the show has introduced low-emission luxury sports cars for the first time and Mr Evans says he expects healthy queues to form around lower priced EVs from Chinese brands such as XPENG, Leapmotor and Zeekr. Industry experts say the packed event and others like it planned for this year demonstrate Australia's transport policies are having an impact and changing the future make-up of our roads. That effect is expected to intensify next month when penalties begin under the federal government's New Vehicle Efficiency Standard that sets emissions limits for manufacturers. More electric cars are scheduled to launch and some petrol and diesel vehicles may be removed from sale, although debate continues over whether motorists are ready for the changes. For Electric Vehicle Council chief executive Julie Delvecchio, the arrival of penalties under the standard is "where the rubber hits the road" and consumers will be able to see what the rules deliver. The standard, introduced in January, sets yearly emission limits for new vehicle fleets that manufacturers must meet or trade credits or pay penalties to achieve. Brands must register new vehicles with the government from July to begin tracking emission levels, with a goal of reaching no more than 141 grams of carbon dioxide per kilometre for passenger vehicles and 210 grams per km for light goods vehicles this year. Car companies that exceed these limits will have two years to address shortfalls before penalties are collected. Having fines embedded into the scheme is important for enforcement, Ms Delvecchio says, even though brands are expected to avoid them by selling more advanced, low-emission transport options. "The first of July is an important turning point for clean energy and clean transport in Australia: it's when the (standard) gets its teeth and we see the enforcement power that has been signalled for a long time," she says. "Prior to (the standard) compared to today, we have double the number of electric car models which is exactly what it's there to do." Consumers can expect to see electric vehicles that have only been available overseas until now and the replacement of some petrol and diesel vehicles with hybrid equivalents. Australia's top-selling car maker Toyota, for example, announced it would end sales of petrol vehicles in Australia where it produced a hybrid variant. "Manufacturers have known that it's coming and are adjusting, and they have to because Australia is really just falling in line with the rest of the world," Ms Delvecchio tells AAP. Similarly, Nissan says it will bring its Ariya electric SUV to Australia to coincide with the rules. These types of changes will lower the nation's transport emissions, Australian Electric Vehicle Association national president Chris Jones says, and shows manufacturers can make the rules work. "It's an indication they're starting to finally realise the homework is due," he says. "The companies that have done their homework are sitting pretty and those who haven't, despite their best efforts to get a reprieve, are going to get caught short." Popular brands such as Hyundai and Kia will be well placed to meet emission limits, Dr Jones says, although others, such as Isuzu, Mitsubishi and Mazda, with fewer low-emission options will need to make bigger changes. Those reforms could involve removing high-polluting vehicles from sale. "The fact car sellers are saying things like we're going to have to offer fewer petrol and diesel vehicles, well, that's one way to do it," he says. "You can't say they weren't warned." Several of Australia's top-selling vehicles, such as the Toyota RAV4 and Ford Ranger, already fall under this year's emission caps and Federal Chamber of Automotive Industries chief executive Tony Weber says brands have worked hard to make that possible. The next hurdle for the local automotive industry may not be with the supply of electric vehicles, he warns, but with demand for them. "The concern we have is that consumers are not changing their behaviour and there's not the demand like we expected for low-emission vehicles," he says. "We're already seeing cars being removed from the market - that's been well documented - and unless there is a change in the behaviour of consumers there are going to be penalties." While sales of new hybrid vehicles have risen strongly in Australia this year, electric car sales rose modestly to represent nine per cent of all vehicles in May. The chamber had predicted EVs would make up 14 per cent of the market, Mr Weber says, and its members would like to see greater infrastructure investments and financial incentives from federal, state and territory governments to back up the new standard. "The government has put in a very stringent rule, wants consumers to quickly move and change their behaviour dramatically, but they're not prepared to subsidise it," he says. "They've got to play a role." A hybrid Lamborghini, an electric Rolls Royce, a convoy of low-emission people-movers and a rumble of battery-powered utes "that can actually tow things" will greet thousands of attendees to Australia's latest motor show. More than 100 electric and hybrid vehicles are on display at the Melbourne EV Show over the weekend which, Future Drive Auto chief executive Ray Evans says, has become significantly easier to organise in Australia's evolving automotive market. "The changes are certainly happening fast and in the third year it takes on a different dynamic," he says. "Before we had very limited product available - obviously Tesla and BYD and a few others - but that's escalated to a point where next year there are 70 new (electric) models going to be released in Australia." In addition to more powerful electrified utes, the show has introduced low-emission luxury sports cars for the first time and Mr Evans says he expects healthy queues to form around lower priced EVs from Chinese brands such as XPENG, Leapmotor and Zeekr. Industry experts say the packed event and others like it planned for this year demonstrate Australia's transport policies are having an impact and changing the future make-up of our roads. That effect is expected to intensify next month when penalties begin under the federal government's New Vehicle Efficiency Standard that sets emissions limits for manufacturers. More electric cars are scheduled to launch and some petrol and diesel vehicles may be removed from sale, although debate continues over whether motorists are ready for the changes. For Electric Vehicle Council chief executive Julie Delvecchio, the arrival of penalties under the standard is "where the rubber hits the road" and consumers will be able to see what the rules deliver. The standard, introduced in January, sets yearly emission limits for new vehicle fleets that manufacturers must meet or trade credits or pay penalties to achieve. Brands must register new vehicles with the government from July to begin tracking emission levels, with a goal of reaching no more than 141 grams of carbon dioxide per kilometre for passenger vehicles and 210 grams per km for light goods vehicles this year. Car companies that exceed these limits will have two years to address shortfalls before penalties are collected. Having fines embedded into the scheme is important for enforcement, Ms Delvecchio says, even though brands are expected to avoid them by selling more advanced, low-emission transport options. "The first of July is an important turning point for clean energy and clean transport in Australia: it's when the (standard) gets its teeth and we see the enforcement power that has been signalled for a long time," she says. "Prior to (the standard) compared to today, we have double the number of electric car models which is exactly what it's there to do." Consumers can expect to see electric vehicles that have only been available overseas until now and the replacement of some petrol and diesel vehicles with hybrid equivalents. Australia's top-selling car maker Toyota, for example, announced it would end sales of petrol vehicles in Australia where it produced a hybrid variant. "Manufacturers have known that it's coming and are adjusting, and they have to because Australia is really just falling in line with the rest of the world," Ms Delvecchio tells AAP. Similarly, Nissan says it will bring its Ariya electric SUV to Australia to coincide with the rules. These types of changes will lower the nation's transport emissions, Australian Electric Vehicle Association national president Chris Jones says, and shows manufacturers can make the rules work. "It's an indication they're starting to finally realise the homework is due," he says. "The companies that have done their homework are sitting pretty and those who haven't, despite their best efforts to get a reprieve, are going to get caught short." Popular brands such as Hyundai and Kia will be well placed to meet emission limits, Dr Jones says, although others, such as Isuzu, Mitsubishi and Mazda, with fewer low-emission options will need to make bigger changes. Those reforms could involve removing high-polluting vehicles from sale. "The fact car sellers are saying things like we're going to have to offer fewer petrol and diesel vehicles, well, that's one way to do it," he says. "You can't say they weren't warned." Several of Australia's top-selling vehicles, such as the Toyota RAV4 and Ford Ranger, already fall under this year's emission caps and Federal Chamber of Automotive Industries chief executive Tony Weber says brands have worked hard to make that possible. The next hurdle for the local automotive industry may not be with the supply of electric vehicles, he warns, but with demand for them. "The concern we have is that consumers are not changing their behaviour and there's not the demand like we expected for low-emission vehicles," he says. "We're already seeing cars being removed from the market - that's been well documented - and unless there is a change in the behaviour of consumers there are going to be penalties." While sales of new hybrid vehicles have risen strongly in Australia this year, electric car sales rose modestly to represent nine per cent of all vehicles in May. The chamber had predicted EVs would make up 14 per cent of the market, Mr Weber says, and its members would like to see greater infrastructure investments and financial incentives from federal, state and territory governments to back up the new standard. "The government has put in a very stringent rule, wants consumers to quickly move and change their behaviour dramatically, but they're not prepared to subsidise it," he says. "They've got to play a role." A hybrid Lamborghini, an electric Rolls Royce, a convoy of low-emission people-movers and a rumble of battery-powered utes "that can actually tow things" will greet thousands of attendees to Australia's latest motor show. More than 100 electric and hybrid vehicles are on display at the Melbourne EV Show over the weekend which, Future Drive Auto chief executive Ray Evans says, has become significantly easier to organise in Australia's evolving automotive market. "The changes are certainly happening fast and in the third year it takes on a different dynamic," he says. "Before we had very limited product available - obviously Tesla and BYD and a few others - but that's escalated to a point where next year there are 70 new (electric) models going to be released in Australia." In addition to more powerful electrified utes, the show has introduced low-emission luxury sports cars for the first time and Mr Evans says he expects healthy queues to form around lower priced EVs from Chinese brands such as XPENG, Leapmotor and Zeekr. Industry experts say the packed event and others like it planned for this year demonstrate Australia's transport policies are having an impact and changing the future make-up of our roads. That effect is expected to intensify next month when penalties begin under the federal government's New Vehicle Efficiency Standard that sets emissions limits for manufacturers. More electric cars are scheduled to launch and some petrol and diesel vehicles may be removed from sale, although debate continues over whether motorists are ready for the changes. For Electric Vehicle Council chief executive Julie Delvecchio, the arrival of penalties under the standard is "where the rubber hits the road" and consumers will be able to see what the rules deliver. The standard, introduced in January, sets yearly emission limits for new vehicle fleets that manufacturers must meet or trade credits or pay penalties to achieve. Brands must register new vehicles with the government from July to begin tracking emission levels, with a goal of reaching no more than 141 grams of carbon dioxide per kilometre for passenger vehicles and 210 grams per km for light goods vehicles this year. Car companies that exceed these limits will have two years to address shortfalls before penalties are collected. Having fines embedded into the scheme is important for enforcement, Ms Delvecchio says, even though brands are expected to avoid them by selling more advanced, low-emission transport options. "The first of July is an important turning point for clean energy and clean transport in Australia: it's when the (standard) gets its teeth and we see the enforcement power that has been signalled for a long time," she says. "Prior to (the standard) compared to today, we have double the number of electric car models which is exactly what it's there to do." Consumers can expect to see electric vehicles that have only been available overseas until now and the replacement of some petrol and diesel vehicles with hybrid equivalents. Australia's top-selling car maker Toyota, for example, announced it would end sales of petrol vehicles in Australia where it produced a hybrid variant. "Manufacturers have known that it's coming and are adjusting, and they have to because Australia is really just falling in line with the rest of the world," Ms Delvecchio tells AAP. Similarly, Nissan says it will bring its Ariya electric SUV to Australia to coincide with the rules. These types of changes will lower the nation's transport emissions, Australian Electric Vehicle Association national president Chris Jones says, and shows manufacturers can make the rules work. "It's an indication they're starting to finally realise the homework is due," he says. "The companies that have done their homework are sitting pretty and those who haven't, despite their best efforts to get a reprieve, are going to get caught short." Popular brands such as Hyundai and Kia will be well placed to meet emission limits, Dr Jones says, although others, such as Isuzu, Mitsubishi and Mazda, with fewer low-emission options will need to make bigger changes. Those reforms could involve removing high-polluting vehicles from sale. "The fact car sellers are saying things like we're going to have to offer fewer petrol and diesel vehicles, well, that's one way to do it," he says. "You can't say they weren't warned." Several of Australia's top-selling vehicles, such as the Toyota RAV4 and Ford Ranger, already fall under this year's emission caps and Federal Chamber of Automotive Industries chief executive Tony Weber says brands have worked hard to make that possible. The next hurdle for the local automotive industry may not be with the supply of electric vehicles, he warns, but with demand for them. "The concern we have is that consumers are not changing their behaviour and there's not the demand like we expected for low-emission vehicles," he says. "We're already seeing cars being removed from the market - that's been well documented - and unless there is a change in the behaviour of consumers there are going to be penalties." While sales of new hybrid vehicles have risen strongly in Australia this year, electric car sales rose modestly to represent nine per cent of all vehicles in May. The chamber had predicted EVs would make up 14 per cent of the market, Mr Weber says, and its members would like to see greater infrastructure investments and financial incentives from federal, state and territory governments to back up the new standard. "The government has put in a very stringent rule, wants consumers to quickly move and change their behaviour dramatically, but they're not prepared to subsidise it," he says. "They've got to play a role." A hybrid Lamborghini, an electric Rolls Royce, a convoy of low-emission people-movers and a rumble of battery-powered utes "that can actually tow things" will greet thousands of attendees to Australia's latest motor show. More than 100 electric and hybrid vehicles are on display at the Melbourne EV Show over the weekend which, Future Drive Auto chief executive Ray Evans says, has become significantly easier to organise in Australia's evolving automotive market. "The changes are certainly happening fast and in the third year it takes on a different dynamic," he says. "Before we had very limited product available - obviously Tesla and BYD and a few others - but that's escalated to a point where next year there are 70 new (electric) models going to be released in Australia." In addition to more powerful electrified utes, the show has introduced low-emission luxury sports cars for the first time and Mr Evans says he expects healthy queues to form around lower priced EVs from Chinese brands such as XPENG, Leapmotor and Zeekr. Industry experts say the packed event and others like it planned for this year demonstrate Australia's transport policies are having an impact and changing the future make-up of our roads. That effect is expected to intensify next month when penalties begin under the federal government's New Vehicle Efficiency Standard that sets emissions limits for manufacturers. More electric cars are scheduled to launch and some petrol and diesel vehicles may be removed from sale, although debate continues over whether motorists are ready for the changes. For Electric Vehicle Council chief executive Julie Delvecchio, the arrival of penalties under the standard is "where the rubber hits the road" and consumers will be able to see what the rules deliver. The standard, introduced in January, sets yearly emission limits for new vehicle fleets that manufacturers must meet or trade credits or pay penalties to achieve. Brands must register new vehicles with the government from July to begin tracking emission levels, with a goal of reaching no more than 141 grams of carbon dioxide per kilometre for passenger vehicles and 210 grams per km for light goods vehicles this year. Car companies that exceed these limits will have two years to address shortfalls before penalties are collected. Having fines embedded into the scheme is important for enforcement, Ms Delvecchio says, even though brands are expected to avoid them by selling more advanced, low-emission transport options. "The first of July is an important turning point for clean energy and clean transport in Australia: it's when the (standard) gets its teeth and we see the enforcement power that has been signalled for a long time," she says. "Prior to (the standard) compared to today, we have double the number of electric car models which is exactly what it's there to do." Consumers can expect to see electric vehicles that have only been available overseas until now and the replacement of some petrol and diesel vehicles with hybrid equivalents. Australia's top-selling car maker Toyota, for example, announced it would end sales of petrol vehicles in Australia where it produced a hybrid variant. "Manufacturers have known that it's coming and are adjusting, and they have to because Australia is really just falling in line with the rest of the world," Ms Delvecchio tells AAP. Similarly, Nissan says it will bring its Ariya electric SUV to Australia to coincide with the rules. These types of changes will lower the nation's transport emissions, Australian Electric Vehicle Association national president Chris Jones says, and shows manufacturers can make the rules work. "It's an indication they're starting to finally realise the homework is due," he says. "The companies that have done their homework are sitting pretty and those who haven't, despite their best efforts to get a reprieve, are going to get caught short." Popular brands such as Hyundai and Kia will be well placed to meet emission limits, Dr Jones says, although others, such as Isuzu, Mitsubishi and Mazda, with fewer low-emission options will need to make bigger changes. Those reforms could involve removing high-polluting vehicles from sale. "The fact car sellers are saying things like we're going to have to offer fewer petrol and diesel vehicles, well, that's one way to do it," he says. "You can't say they weren't warned." Several of Australia's top-selling vehicles, such as the Toyota RAV4 and Ford Ranger, already fall under this year's emission caps and Federal Chamber of Automotive Industries chief executive Tony Weber says brands have worked hard to make that possible. The next hurdle for the local automotive industry may not be with the supply of electric vehicles, he warns, but with demand for them. "The concern we have is that consumers are not changing their behaviour and there's not the demand like we expected for low-emission vehicles," he says. "We're already seeing cars being removed from the market - that's been well documented - and unless there is a change in the behaviour of consumers there are going to be penalties." While sales of new hybrid vehicles have risen strongly in Australia this year, electric car sales rose modestly to represent nine per cent of all vehicles in May. The chamber had predicted EVs would make up 14 per cent of the market, Mr Weber says, and its members would like to see greater infrastructure investments and financial incentives from federal, state and territory governments to back up the new standard. "The government has put in a very stringent rule, wants consumers to quickly move and change their behaviour dramatically, but they're not prepared to subsidise it," he says. "They've got to play a role."
The Advertiser
14 hours ago
- The Advertiser
Trump cuts off trade talks with Canada over digital tax
US President Donald Trump has abruptly cut off trade talks with Canada over its tax targeting US technology firms, calling it a "blatant attack" and saying that he would set a new tariff rate on Canadian goods within the next week. The move plunges US relations with its second-largest trading partner back into chaos after a period of relative calm. It also came just hours after Treasury Secretary Scott Bessent struck an upbeat tone on trade, touting progress had been made with China on reviving the flow of critical minerals for the US manufacturing sector and in other key tariff negotiations. The often-chaotic rollout of Trump's import levies since his return to office this year have frequently whipsawed financial markets, and have begun to weigh on consumer spending, the bedrock of the US economy. US stocks were briefly batted lower by his broadside against Canada but managed to close out the week at record highs for the S&P 500 and Nasdaq. Trump's action comes ahead of Canada's plans to begin collecting on Monday a longstanding digital services tax on US technology firms including Amazon, Meta, Alphabet's Google and Apple among others. The tax is 3.0 per cent of the digital services revenue a firm takes in from Canadian users above $US20 million ($A31 million) in a calendar year, and payments will be retroactive to 2022. Trump, in a post on his Truth Social media platform, called the tax "a direct and blatant attack on our country" and said Canada was a "very difficult country to TRADE with". "Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump said. "We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period." Canada is the second-largest US trading partner after Mexico, buying $US349.4 billion of US goods last year and exporting $US412.7 billion to the US, according to US Census Bureau data. Canadian Prime Minister Mark Carney had said on June 16 he and Trump agreed to try to wrap up a new economic and security deal within 30 days. "The Canadian government will continue to engage in these complex negotiations with the United States in the best interests of Canadian workers and businesses," Carney's office said in a statement. Earlier on Friday, Bessent said the Trump administration's various trade deals with other countries could be done by the September 1 Labor Day holiday, citing talks with 18 top trade partners and another revision to a deal with China to reopen the flow of rare earth minerals and magnets. The United States sent a new proposal to the European Union on Thursday and India sent a delegation to Washington DC for more talks. "So we have countries approaching us with very good deals," Bessent said on Fox Business Network. "We have 18 important trading partners. ... If we can ink 10 or 12 of the important 18, there are another important 20 relationships, then I think we could have trade wrapped up by Labor Day," Bessent said. He did not mention any changes to a July 9 deadline for countries to reach deals with the United States or see tariffs spike higher but has previously said that countries negotiating in good faith could get deals. But Trump told reporters at the White House that he could extend the tariff deadline or "make it shorter," adding that within the next week and a half, he would notify countries of their tariff rates. "I'd like to just send letters out to everybody: Congratulations. You're paying 25 per cent" tariffs, Trump said in an apparent joke. Bessent said the United States and China had resolved issues surrounding shipments of Chinese rare earth minerals and magnets to the US, further modifying a deal reached in May in Geneva. China's commerce ministry said on Friday the two countries have confirmed details on the framework of implementing the Geneva trade talks consensus. It said China will approve export applications of controlled items in accordance with the law. It did not mention rare earths. US President Donald Trump has abruptly cut off trade talks with Canada over its tax targeting US technology firms, calling it a "blatant attack" and saying that he would set a new tariff rate on Canadian goods within the next week. The move plunges US relations with its second-largest trading partner back into chaos after a period of relative calm. It also came just hours after Treasury Secretary Scott Bessent struck an upbeat tone on trade, touting progress had been made with China on reviving the flow of critical minerals for the US manufacturing sector and in other key tariff negotiations. The often-chaotic rollout of Trump's import levies since his return to office this year have frequently whipsawed financial markets, and have begun to weigh on consumer spending, the bedrock of the US economy. US stocks were briefly batted lower by his broadside against Canada but managed to close out the week at record highs for the S&P 500 and Nasdaq. Trump's action comes ahead of Canada's plans to begin collecting on Monday a longstanding digital services tax on US technology firms including Amazon, Meta, Alphabet's Google and Apple among others. The tax is 3.0 per cent of the digital services revenue a firm takes in from Canadian users above $US20 million ($A31 million) in a calendar year, and payments will be retroactive to 2022. Trump, in a post on his Truth Social media platform, called the tax "a direct and blatant attack on our country" and said Canada was a "very difficult country to TRADE with". "Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump said. "We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period." Canada is the second-largest US trading partner after Mexico, buying $US349.4 billion of US goods last year and exporting $US412.7 billion to the US, according to US Census Bureau data. Canadian Prime Minister Mark Carney had said on June 16 he and Trump agreed to try to wrap up a new economic and security deal within 30 days. "The Canadian government will continue to engage in these complex negotiations with the United States in the best interests of Canadian workers and businesses," Carney's office said in a statement. Earlier on Friday, Bessent said the Trump administration's various trade deals with other countries could be done by the September 1 Labor Day holiday, citing talks with 18 top trade partners and another revision to a deal with China to reopen the flow of rare earth minerals and magnets. The United States sent a new proposal to the European Union on Thursday and India sent a delegation to Washington DC for more talks. "So we have countries approaching us with very good deals," Bessent said on Fox Business Network. "We have 18 important trading partners. ... If we can ink 10 or 12 of the important 18, there are another important 20 relationships, then I think we could have trade wrapped up by Labor Day," Bessent said. He did not mention any changes to a July 9 deadline for countries to reach deals with the United States or see tariffs spike higher but has previously said that countries negotiating in good faith could get deals. But Trump told reporters at the White House that he could extend the tariff deadline or "make it shorter," adding that within the next week and a half, he would notify countries of their tariff rates. "I'd like to just send letters out to everybody: Congratulations. You're paying 25 per cent" tariffs, Trump said in an apparent joke. Bessent said the United States and China had resolved issues surrounding shipments of Chinese rare earth minerals and magnets to the US, further modifying a deal reached in May in Geneva. China's commerce ministry said on Friday the two countries have confirmed details on the framework of implementing the Geneva trade talks consensus. It said China will approve export applications of controlled items in accordance with the law. It did not mention rare earths. US President Donald Trump has abruptly cut off trade talks with Canada over its tax targeting US technology firms, calling it a "blatant attack" and saying that he would set a new tariff rate on Canadian goods within the next week. The move plunges US relations with its second-largest trading partner back into chaos after a period of relative calm. It also came just hours after Treasury Secretary Scott Bessent struck an upbeat tone on trade, touting progress had been made with China on reviving the flow of critical minerals for the US manufacturing sector and in other key tariff negotiations. The often-chaotic rollout of Trump's import levies since his return to office this year have frequently whipsawed financial markets, and have begun to weigh on consumer spending, the bedrock of the US economy. US stocks were briefly batted lower by his broadside against Canada but managed to close out the week at record highs for the S&P 500 and Nasdaq. Trump's action comes ahead of Canada's plans to begin collecting on Monday a longstanding digital services tax on US technology firms including Amazon, Meta, Alphabet's Google and Apple among others. The tax is 3.0 per cent of the digital services revenue a firm takes in from Canadian users above $US20 million ($A31 million) in a calendar year, and payments will be retroactive to 2022. Trump, in a post on his Truth Social media platform, called the tax "a direct and blatant attack on our country" and said Canada was a "very difficult country to TRADE with". "Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump said. "We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period." Canada is the second-largest US trading partner after Mexico, buying $US349.4 billion of US goods last year and exporting $US412.7 billion to the US, according to US Census Bureau data. Canadian Prime Minister Mark Carney had said on June 16 he and Trump agreed to try to wrap up a new economic and security deal within 30 days. "The Canadian government will continue to engage in these complex negotiations with the United States in the best interests of Canadian workers and businesses," Carney's office said in a statement. Earlier on Friday, Bessent said the Trump administration's various trade deals with other countries could be done by the September 1 Labor Day holiday, citing talks with 18 top trade partners and another revision to a deal with China to reopen the flow of rare earth minerals and magnets. The United States sent a new proposal to the European Union on Thursday and India sent a delegation to Washington DC for more talks. "So we have countries approaching us with very good deals," Bessent said on Fox Business Network. "We have 18 important trading partners. ... If we can ink 10 or 12 of the important 18, there are another important 20 relationships, then I think we could have trade wrapped up by Labor Day," Bessent said. He did not mention any changes to a July 9 deadline for countries to reach deals with the United States or see tariffs spike higher but has previously said that countries negotiating in good faith could get deals. But Trump told reporters at the White House that he could extend the tariff deadline or "make it shorter," adding that within the next week and a half, he would notify countries of their tariff rates. "I'd like to just send letters out to everybody: Congratulations. You're paying 25 per cent" tariffs, Trump said in an apparent joke. Bessent said the United States and China had resolved issues surrounding shipments of Chinese rare earth minerals and magnets to the US, further modifying a deal reached in May in Geneva. China's commerce ministry said on Friday the two countries have confirmed details on the framework of implementing the Geneva trade talks consensus. It said China will approve export applications of controlled items in accordance with the law. It did not mention rare earths. US President Donald Trump has abruptly cut off trade talks with Canada over its tax targeting US technology firms, calling it a "blatant attack" and saying that he would set a new tariff rate on Canadian goods within the next week. The move plunges US relations with its second-largest trading partner back into chaos after a period of relative calm. It also came just hours after Treasury Secretary Scott Bessent struck an upbeat tone on trade, touting progress had been made with China on reviving the flow of critical minerals for the US manufacturing sector and in other key tariff negotiations. The often-chaotic rollout of Trump's import levies since his return to office this year have frequently whipsawed financial markets, and have begun to weigh on consumer spending, the bedrock of the US economy. US stocks were briefly batted lower by his broadside against Canada but managed to close out the week at record highs for the S&P 500 and Nasdaq. Trump's action comes ahead of Canada's plans to begin collecting on Monday a longstanding digital services tax on US technology firms including Amazon, Meta, Alphabet's Google and Apple among others. The tax is 3.0 per cent of the digital services revenue a firm takes in from Canadian users above $US20 million ($A31 million) in a calendar year, and payments will be retroactive to 2022. Trump, in a post on his Truth Social media platform, called the tax "a direct and blatant attack on our country" and said Canada was a "very difficult country to TRADE with". "Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump said. "We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period." Canada is the second-largest US trading partner after Mexico, buying $US349.4 billion of US goods last year and exporting $US412.7 billion to the US, according to US Census Bureau data. Canadian Prime Minister Mark Carney had said on June 16 he and Trump agreed to try to wrap up a new economic and security deal within 30 days. "The Canadian government will continue to engage in these complex negotiations with the United States in the best interests of Canadian workers and businesses," Carney's office said in a statement. Earlier on Friday, Bessent said the Trump administration's various trade deals with other countries could be done by the September 1 Labor Day holiday, citing talks with 18 top trade partners and another revision to a deal with China to reopen the flow of rare earth minerals and magnets. The United States sent a new proposal to the European Union on Thursday and India sent a delegation to Washington DC for more talks. "So we have countries approaching us with very good deals," Bessent said on Fox Business Network. "We have 18 important trading partners. ... If we can ink 10 or 12 of the important 18, there are another important 20 relationships, then I think we could have trade wrapped up by Labor Day," Bessent said. He did not mention any changes to a July 9 deadline for countries to reach deals with the United States or see tariffs spike higher but has previously said that countries negotiating in good faith could get deals. But Trump told reporters at the White House that he could extend the tariff deadline or "make it shorter," adding that within the next week and a half, he would notify countries of their tariff rates. "I'd like to just send letters out to everybody: Congratulations. You're paying 25 per cent" tariffs, Trump said in an apparent joke. Bessent said the United States and China had resolved issues surrounding shipments of Chinese rare earth minerals and magnets to the US, further modifying a deal reached in May in Geneva. China's commerce ministry said on Friday the two countries have confirmed details on the framework of implementing the Geneva trade talks consensus. It said China will approve export applications of controlled items in accordance with the law. It did not mention rare earths.
Perth Now
16 hours ago
- Perth Now
More EVs, fewer V8s: changes coming for Aussie drivers
A hybrid Lamborghini, an electric Rolls Royce, a convoy of low-emission people-movers and a rumble of battery-powered utes "that can actually tow things" will greet thousands of attendees to Australia's latest motor show. More than 100 electric and hybrid vehicles are on display at the Melbourne EV Show over the weekend which, Future Drive Auto chief executive Ray Evans says, has become significantly easier to organise in Australia's evolving automotive market. "The changes are certainly happening fast and in the third year it takes on a different dynamic," he says. "Before we had very limited product available - obviously Tesla and BYD and a few others - but that's escalated to a point where next year there are 70 new (electric) models going to be released in Australia." In addition to more powerful electrified utes, the show has introduced low-emission luxury sports cars for the first time and Mr Evans says he expects healthy queues to form around lower priced EVs from Chinese brands such as XPENG, Leapmotor and Zeekr. Industry experts say the packed event and others like it planned for this year demonstrate Australia's transport policies are having an impact and changing the future make-up of our roads. That effect is expected to intensify next month when penalties begin under the federal government's New Vehicle Efficiency Standard that sets emissions limits for manufacturers. More electric cars are scheduled to launch and some petrol and diesel vehicles may be removed from sale, although debate continues over whether motorists are ready for the changes. For Electric Vehicle Council chief executive Julie Delvecchio, the arrival of penalties under the standard is "where the rubber hits the road" and consumers will be able to see what the rules deliver. The standard, introduced in January, sets yearly emission limits for new vehicle fleets that manufacturers must meet or trade credits or pay penalties to achieve. Brands must register new vehicles with the government from July to begin tracking emission levels, with a goal of reaching no more than 141 grams of carbon dioxide per kilometre for passenger vehicles and 210 grams per km for light goods vehicles this year. Car companies that exceed these limits will have two years to address shortfalls before penalties are collected. Having fines embedded into the scheme is important for enforcement, Ms Delvecchio says, even though brands are expected to avoid them by selling more advanced, low-emission transport options. "The first of July is an important turning point for clean energy and clean transport in Australia: it's when the (standard) gets its teeth and we see the enforcement power that has been signalled for a long time," she says. "Prior to (the standard) compared to today, we have double the number of electric car models which is exactly what it's there to do." Consumers can expect to see electric vehicles that have only been available overseas until now and the replacement of some petrol and diesel vehicles with hybrid equivalents. Australia's top-selling car maker Toyota, for example, announced it would end sales of petrol vehicles in Australia where it produced a hybrid variant. "Manufacturers have known that it's coming and are adjusting, and they have to because Australia is really just falling in line with the rest of the world," Ms Delvecchio tells AAP. Similarly, Nissan says it will bring its Ariya electric SUV to Australia to coincide with the rules. These types of changes will lower the nation's transport emissions, Australian Electric Vehicle Association national president Chris Jones says, and shows manufacturers can make the rules work. "It's an indication they're starting to finally realise the homework is due," he says. "The companies that have done their homework are sitting pretty and those who haven't, despite their best efforts to get a reprieve, are going to get caught short." Popular brands such as Hyundai and Kia will be well placed to meet emission limits, Dr Jones says, although others, such as Isuzu, Mitsubishi and Mazda, with fewer low-emission options will need to make bigger changes. Those reforms could involve removing high-polluting vehicles from sale. "The fact car sellers are saying things like we're going to have to offer fewer petrol and diesel vehicles, well, that's one way to do it," he says. "You can't say they weren't warned." Several of Australia's top-selling vehicles, such as the Toyota RAV4 and Ford Ranger, already fall under this year's emission caps and Federal Chamber of Automotive Industries chief executive Tony Weber says brands have worked hard to make that possible. The next hurdle for the local automotive industry may not be with the supply of electric vehicles, he warns, but with demand for them. "The concern we have is that consumers are not changing their behaviour and there's not the demand like we expected for low-emission vehicles," he says. "We're already seeing cars being removed from the market - that's been well documented - and unless there is a change in the behaviour of consumers there are going to be penalties." While sales of new hybrid vehicles have risen strongly in Australia this year, electric car sales rose modestly to represent nine per cent of all vehicles in May. The chamber had predicted EVs would make up 14 per cent of the market, Mr Weber says, and its members would like to see greater infrastructure investments and financial incentives from federal, state and territory governments to back up the new standard. "The government has put in a very stringent rule, wants consumers to quickly move and change their behaviour dramatically, but they're not prepared to subsidise it," he says. "They've got to play a role."
