Chinese Aircraft Carrier Seen Operating Deeper Into Pacific
The Liaoning and three other Chinese naval vessels were seen on Saturday around 300 kilometers (some 185 miles) southwest of the remote, uninhabited Japanese island of Minamitori, according to a statement from Japan's Joint Chief of Staff.
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Bloomberg
an hour ago
- Bloomberg
EU Tariff Deal Lacks Detail: Greta Peisch
Bloomberg Markets Balance of Power Greta Peisch, Former General Counsel for the Office of the US Trade Representative and Partner at Wiley Rein, shares her thoughts on the US and EU reaching a trade deal and whether or not she believes President Trump is proving that tariffs work. She also talks about the EU tariff rate, what happens if all the countries in the EU don't sign off on the tariff deal, and trade talks between the US & China resuming Tuesday. Greta Peisch speaks with Kailey Leinz and Joe Mathieu on the late edition of Bloomberg's "Balance of Power." (Source: Bloomberg)
Boston Globe
an hour ago
- Boston Globe
US-China tariff talks may provide clues on a possible Trump-Xi meeting
Analysts say the talks could set the stage for a possible meeting between President Other issues on the agenda include access of American businesses to the Chinese market; Chinese investment in the United States; components of fentanyl made in China that reach US consumers; Chinese purchases of Russian and Iranian oil; and American steps to limit exports of Western technology — like chips that help power artificial intelligence systems. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up The talks ended for the day after nearly five hours on Monday, and were set to reconvene on Tuesday morning. Advertisement Wendy Cutler, a former US trade negotiator and now vice president at the Asia Society Policy Institute, said that Trump's team would face challenges from 'a large and confident partner that is more than willing to retaliate against US interests.' Rollover of tariff rates 'should be the easy part,' she said, warning that Beijing has learned lessons since the first Trump administration and 'will not buy into a one-sided deal this time around.' Advertisement 'Beijing is more prepared and will insist on movement on US tech export controls at a minimum — a difficult ask for Washington,' she said, adding that many conversations will take place in the lead-up to any Xi-Trump summit. 'Success is far from guaranteed,' Cutler said. 'There are numerous trip wires that can throw a wrench in this preparatory process.' The US-China trade talks are the third this year, nearly four months after Trump upended global trade with his The Stockholm meeting, following similar talks in Geneva and London, is set to extend a 90-day pause on those tariffs. During the hiatus, US tariffs have been lowered to 30 percent on Chinese goods, and China set a 10 percent tariff on US products. The Trump administration, which just completed a China's Commerce Ministry said last week that the 'consultations' would raise shared concerns through the principles of 'mutual respect, peaceful coexistence and win-win cooperation.' The talks with Beijing are part of a flurry of US trade negotiations set off by Trump's arm-twisting 'Liberation Day' tariffs against Without an extension by Aug. 12, the tit-for-tat US-China tariffs could snap back to the triple-digit levels seen before the 90-day pause reached in Geneva. Many other countries — including some developing ones that depend on exports to the United States — face a deadline of Friday, as the Trump administration has said that letters will go out beforehand with set rates. Advertisement Critics say Trump's tariffs penalize Americans by forcing US importers to shoulder the costs or pass them on to consumers through higher prices. On Friday, Trump told reporters that 'we have the confines of a deal with China' — just two days after Bessent told MSNBC that a 'status quo' had been reached between the two sides. While the Chinese side has offered little guidance about the specifics of its aims in Stockholm, Bessent has suggested that the situation has stabilized to the point that China and the United States can start looking toward longer-term balance between their economies. For years, since China vaulted into the global trading system about two decades ago, the United States has sought to press leaders in Beijing to encourage more consumption in China and wrest greater market access to foreign-made — including American — goods. Other sticking points in the relationship include overcapacity in China — by far the world's largest manufacturer — and concerns about whether Beijing is doing enough to control chemicals used to make fentanyl, analysts say. In Stockholm, the Chinese will likely demand the removal of a Experts say long-term progress in the US-China trade relationship will hinge on structural changes. Those include increased manufacturing in the United States, which is part of Trump's ambition. On the Chinese side, that could involve a reduction of excess Chinese production in many industries, including electric vehicles and steel, and increased Chinese consumer spending to ease imbalances in China's export-driven economy. Advertisement Sean Stein, president of the US-China Business Council, said the the talks in Stockholm offer an opportunity for the two governments to address structural reform issues. Businesses will watch for clues about a possible Trump-Xi summit, because any real deal will depend on a meeting between the pair, he said. A deal is possible because 'a lot of the things that the US wants, the Chinese want as well,' Stein said. China, for example, is interested in buying US soybeans, and aircraft and parts, and Chinese businesses are interested in investing in US manufacturing — which would help meet Trump's goal of reindustrialization. Bessent has also said the Stockholm talks could address Chinese purchases of Russian and Iranian oil.
Yahoo
2 hours ago
- Yahoo
Trump's trade deals could push the average new car price well above $50,000
Markets have cheered President Trump's trade deals with Japan and the European Union. New 15% tariffs on most imported products from those countries are lower than many analysts expected, and they finally bring some predictability to Trump's chaotic on-and-off-and-on-again tariff policy. But import taxes are still going up, and past experience tells us that American consumers will ultimately bear most of the cost. Some of the most important imports from Europe and Japan are cars and car parts, and the higher taxes are sure to make all facets of owning a car costlier, just as drivers were hoping for a break from soaring prices. Trump is still working on trade deals with Canada, Mexico, and South Korea, other major sources of auto imports, and those outcomes will likely hike prices further. Switch Auto Insurance and Save Today! Great Rates and Award-Winning Service The Insurance Savings You Expect Affordable Auto Insurance, Customized for You The average new car costs nearly $49,000, according to Kelley Blue Book. Trump's tariffs could raise costs by $3,000 or more once fully priced in, with costs rising less for cheaper models and more for luxury makes. It could take several months for those import taxes to work through supply chains, but unless there's a recession that ravages demand, car prices seem certain to hit new record highs during Trump's second presidential term. Read more: The latest news and updates on Trump's tariffs Ten years ago, the average car price was just $30,000. Several factors have pushed prices higher. Americans increasingly buy big pickups and SUVs, which cost more. Manufacturers struggle to make money on small economy cars and have been pulling them from their lineups. An explosion of digital gizmos adds to the cost, as does new automaker investments in electrification, which still isn't profitable industrywide. The COVID pandemic turbocharged auto inflation due to supply chain disruptions, parts shortages, stronger demand for non-urban transportation, and other factors. Costlier new cars increased demand for used cars, fueling inflation there, as well. More expensive parts and higher repair costs caused a surge in insurance premiums, which have doubled during the last 10 years. The charts below show the trends. Auto inflation has stabilized — but prices aren't coming down. They're basically stuck at new, higher levels. The only real break for drivers has been gasoline prices, down about 10% during the last year, to a national average of about $3.15 per have been first-line victims of Trump's tariffs. That means their customers will feel the pain too. General Motors (GM) and Jeep-parent Stellantis (STLA) both said tariffs harmed profitability in the second quarter. Ford (F) will probably echo that theme when it reports earnings on July 30. Automakers aren't just suffering from tariffs on imported parts, but also from Trump's new 50% tariff on most imported steel and aluminum, which are major components in cars. Most car prices haven't risen yet. The all-in cost of buying a car has actually dropped from peak levels of 2022, when the average cost of a new car equated to 42 weeks of work for the typical buyer, according to the Cox Automotive/Moody's Analytics affordability index, which accounts for prices, incomes, and interest rates. That's now down to about 37 weeks of work. But overall costs are still about 10% higher in real terms than they were from 2012 through 2021. And it's only a matter of time before automakers start passing higher tariff costs onto buyers. Some of the most popular cars in the US market are imports. The Subaru Impreza, Toyota (TM) Prius, and Mazda (7261.T) Miata come from Japan, as a few examples. Many Audis, BMWs ( and Mercedes ( come from Europe, along with the Volkswagen (VWAGY) Golf. Those imports will all come with the new 15% tax. Korean imports include the Hyundai ( Elantra, Kia Soul, and many other models from the two Korean manufacturers. They seem likely to face the same 15% import tax, since that is becoming the standard for Trump's trade deals. Read more: What Trump's tariffs mean for the economy and your wallet Mexico is the biggest source of automotive imports, supplying about 40% of all imported components, plus finished vehicles such as the Ford Maverick, Chevy Blazer, Mazda 3, and Nissan (NSANY) Sentra. Canada is another major source of vehicles such as the Chrysler Pacifica, Lexus RX 350, and many Honda (HMC) Civics. New Trump trade deals with Mexico and Canada seem further off, but in the meantime, he imposed a 25% tax on imported products from those countries that don't satisfy complex domestic-content requirements. All told, about 46% of the 16 million cars sold in the United States each year are imports, and almost all of the cheapest economy cars on the market are imports because carmakers generally can't afford to make them in America. Virtually all of those products will cost more because of the Trump tariffs. Earlier this year, when Trump was threatening 25% taxes on all imported cars, the Yale Budget Lab estimated such an across-the-board tariff would raise the cost of an average car by $6,400. That applied to all cars, whether imported or domestic, because price hikes in one major sector allow competitors to raise their prices too. If the across-the-board tariff is 15% instead of 25%, price hikes would obviously be less. Manufacturers might make adjustments and 'eat' some of the cost by accepting lower profits. But they can't eat all of the additional cost. Shareholders won't accept it, and with costs rising throughout the industry, all automakers will have pricing power, allowing them to charge more. Even if prices rise by less than under some other scenario, car buyers still have reason to expect lower prices from Trump, not higher ones. Trump ran for president last year, vowing to 'bring prices way down,' after three years of excessive inflation. Voters who went for Trump in 2024 said that was one of the main reasons they picked him. Yet earlier this year, Trump said he 'couldn't care less' if automakers raised prices to offset the cost of his tariffs. They're going to. Maybe it won't be by as much as analysts thought before, but that won't comfort buyers facing sticker shock anew at the dealership, service center, auto parts store, and insurance agency. Those Trump trade deals won't look so rosy once people start to pay for them. Rick Newman is a senior columnist for Yahoo Finance. Follow him on Bluesky and X: @rickjnewman. Click here for political news related to business and money policies that will shape tomorrow's stock prices.
