
Indonesia Says US Oil Deal Hinges on Tariff Talks, Reports Say
'We have allocated $10 billion to $15 billion to buy from the US if the tariffs are lowered, but if not, then there won't be a deal,' Energy and Mineral Resources Minister Bahlil Lahadalia said in Jakarta on Monday, media outlets including CNN Indonesia and Bloomberg Technoz reported.

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Yahoo
14 minutes ago
- Yahoo
We're about to find out who's really paying for tariffs
Earnings season gets going in earnest this week, giving investors a fuller picture of how tariffs are impacting the bottom line—and specifically how much of the cost is being eaten by companies and how much is being passed on to consumers. So far, tariffs have yet to fuel a surge in inflation, but their effects are expected to show up more later this year. Earnings for the second quarter will heat up this week, with more at stake than usual as they represent a fuller picture on how tariffs are actually affecting businesses and consumers. The top U.S. banks will report, starting with JPMorgan Chase, Citigroup and Wells Fargo on Tuesday. In the tech sector, streaming leader Netflix and chip giant TSMC report on Thursday. Among industrials, results from Alcoa, GE Aerospace, and 3M are also due this week. The consensus estimate on Wall Street is that earnings from S&P 500 companies grew just 4% in the second quarter from a year ago, the slowest pace since 2023 and down from first-quarter growth of 13%. That comes as President Donald Trump's trade war has yet to fuel a big inflation inflation spike, though tariffs are expected to show up more in economic data later this year. The consumer price index will come out on Tuesday, and analysts expect a 0.3% monthly increase for June, up from May's 0.1% pace. The producer price index is due on Wednesday, and is also expected to show acceleration to 0.2% from 0.1%. The uptick could be a due to companies running out of inventories that were stockpiled ahead of the tariffs, forcing them to incorporate more of those costs in the price of their goods. Capital Economics said last week that Wall Street doesn't see Corporate America shouldering much of the future tariff burden, and exporters don't appear to be cutting their prices aggressively to offset the tariffs. A survey published last week by KPMG found more than 80% of companies plan to hike prices in the next six months, and 73% said they have already passed on up to half of tariff-related costs to consumers. But that was still not enough to preserve earnings, as 57% of firms said their gross margins are falling. Meanwhile, economists at Goldman Sachs expect companies will pass on 70% of tariff costs to consumers via higher prices, according to a note earlier this month. If that pans out, it would be a heavier blow than some earlier forecasts. Chris Harvey, Wells Fargo Securities' head of equity strategy, said if tariffs settle around 10%, then a third of the cost could be eaten by the importer, a third by companies, and a third by consumers. 'That's not a big impact,' he told CNBC on May 30. That 10% target looks increasingly optimistic, as Trump has continued to push for aggressive rates. Goldman Sachs expects the effective rate to eventually settle around 17%. But companies that pass on tariff costs also risk a backlash. The KPMG survey said 34% of companies said customer pushback is a challenge, and 45% said sales are already beginning to dip. And there's one consumer in particular that companies need to avoid annoying: Trump. In May, he warned Walmart not to hike prices after the retail giant said on an earnings call that prices could go up on a wide array of products. 'Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,' Trump posted on Truth Social. 'Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China they should, as is said, 'EAT THE TARIFFS,' and not charge valued customers ANYTHING. I'll be watching, and so will your customers!!!' Capital Economics said last week it suspects U.S. firms will eat more costs, 'if only in the short run for political reasons.' Either way, the upcoming earnings reports will reveal more definitively who is eating how much. More pain on the consumer side could fuel inflation and prevent the Federal Reserve from lowering rates, weighing on the stock market. More pain on the corporate side will erode earnings—and also weigh on the stock market. This story was originally featured on 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


Bloomberg
28 minutes ago
- Bloomberg
Nvidia Expects US License to Resume AI Chip Sales to China
Good morning. Nvidia gets the nod from the US to resume AI chip sales to China. The EU will target American cars and bourbon in tariff countermeasures. And Rachel Reeves gives a major speech to the City of London tonight. Listen to the day's top stories. Nvidia plans to resume sales of its H20 AI chip to China based on assurances from Washington that such shipments would be approved, a dramatic reversal from the Trump administration's earlier stance. Nasdaq 100 futures rose after the announcement, while Asian shares wavered as traders awaited key US inflation data.

Wall Street Journal
44 minutes ago
- Wall Street Journal
Heard on the Street Recap: It's Raining Tariffs
More tariff threats. Over the weekend President Trump said 30% tariffs on goods from the European Union and Mexico would go into effect on Aug. 1. This would be up from the current rates of 10% and 25% on the two markets' goods respectively. It was unclear if goods that are compliant with the U.S.-Mexico-Canada free-trade agreement would still be exempt from the Mexico tariff, as they are currently.