Gold Slips as US Bond Yields Rise, Investors Assess New Tariffs
Spot gold was down 0.2% at $3,328.67 per ounce, as of 1207 GMT. US gold futures fell 0.1% to $3,338.20.
The yield on benchmark US 10-year notes rose to a two-week peak, making the non-yielding bullion less attractive.
"Gold is stuck between a rock and a hard place," said UBS commodity analyst Giovanni Staunovo, Reuters reported.
"Negative for the gold price is the US decision to extend the deadline for a trade deal for many trade partners, positive for the gold price is the fact that key US trading partners in Asia might have to deal with higher tariffs in the near future, weighing on economic growth prospects."
On Monday, Trump told 14 countries that sharply higher tariffs would start on August 1, marking a new phase in the trade war he launched in April, with levies between 25% and 40%.
The new deadline was firm, Trump said, adding that he would consider extensions if countries made proposals for a trade deal.
"Reciprocal tariffs" were to be capped at 10% until July 9 to allow for negotiations, but so far, agreements have been reached only with Britain and Vietnam. In June, Washington and Beijing agreed on a framework covering tariff rates.
Meanwhile, China has warned the Trump administration against reigniting trade tensions and threatened to retaliate against nations that strike deals with the US to exclude it from their supply chains.
Trump's tariffs have stoked inflation fears, further complicating the US Federal Reserve's path to lower interest rates.
Investors await minutes of the Fed's June meeting, due on Wednesday, for more clues into the bank's policy outlook.
Spot silver fell 0.1% to $36.71 per ounce, platinum rose 0.2% to $1,372.51, and palladium rose 0.6% to $1,117.33.
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Arab News
2 hours ago
- Arab News
A look at the countries that received Trump's tariff letters
WASHINGTON: President Donald Trump has sent letters this week outlining higher tariffs countries will face if they don't make trade deals with the US by Aug. 1. Some mirror the so-called 'reciprocal' rates Trump unveiled against dozens of trading partners in April — the bulk of which were later postponed just hours after taking effect. But many are higher or lower than those previously announced amounts. So far, Trump has warned the European Union and 24 nations, including major trading partners like South Korea and Japan, that steeper tariffs will be imposed starting Aug. 1. Nearly all of these letters took the same general tone with the exception of Brazil, Canada, the EU and Mexico, which included more specifics about Trump's issues with those countries. Nearly every country has faced a minimum 10 percent levy on goods entering the US since April, on top of other levies on specific products like steel and automobiles. And future escalation is still possible. In his letters, which were posted on Truth Social, Trump warned countries that they would face even higher tariffs if they retaliated by increasing their own import taxes. Here's a look at the countries that have gotten tariff letters so far — and where things stand now: Brazil Tariff rate: 50 percent starting Aug. 1. Brazil wasn't threatened with an elevated 'reciprocal' rate in April — but, like other countries, has faced Trump's 10 percent baseline over the last three months. Key exports to the US: Petroleum, iron products, coffee and fruit juice. Response: In a forceful response, Brazilian President Luiz Inacio Lula da Silva said Trump's tariffs would trigger the country's economic reciprocity law — which allows trade, investment and intellectual property agreements to be suspended against countries that harm Brazil's competitiveness. He also noted that the US has had a trade surplus of more than $410 billion with Brazil over the past 15 years. Myanmar Tariff rate: 40 percent starting Aug. 1. That's down from 44 percent announced in April. Key exports to the US: Clothing, leather goods and seafood Response: Maj. Gen. Zaw Min Tun, the spokesperson for Myanmar's military government said it will follow up with negotiations. Laos Tariff rate: 40 percent starting Aug. 1. That's down from 48 percent announced in April. Key exports to the US: Shoes with textile uppers, wood furniture, electronic components and optical fiber Cambodia Tariff rate: 36 percent starting Aug. 1. That's down from 49 percent announced in April. Key exports to the US: Textiles, clothing, shoes and bicycles Response: Cambodia's chief negotiator, Sun Chanthol, said the country successfully got the tariff dropped from the 49 percent Trump announced in April to 36 percent and is ready to hold a new round of negotiations. He appealed to investors, especially factory owners, and the country's nearly 1 million garment workers not to panic about the tariff rate announced Monday. Thailand Tariff rate: 36 percent starting Aug. 1. That's the same rate that was announced in April. Key exports to the US: Computer parts, rubber products and gemstones Response: Thailand's Deputy Prime Minister Pichai Chunhavajira said Thailand will continue to push for tariff negotiations with the United States. Thailand on Sunday submitted a new proposal that includes opening the Thai market for more American agricultural and industrial products and increasing imports of energy and aircraft. Bangladesh Tariff rate: 35 percent starting Aug. 1. That's down from 37 percent announced in April. Key export to the US: Clothing Response: Bangladesh's finance adviser Salehuddin Ahmed said Bangladesh hopes to negotiate for a better outcome. There are concerns that additional tariffs would make Bangladesh's garment exports less competitive with countries like Vietnam and India. Canada Tariff rate: 35 percent starting Aug. 1. That's up from 25 percent imposed earlier this year on goods that don't comply with a North American trade agreement covering the US, Canada and Mexico. Some of Canada's top exports to the US are subject to different industry-specific tariffs. Key exports to the US: Oil and petroleum products, cars and trucks Response: Canadian Prime Minister Mark Carney posted on X early Friday that the government will continue to work toward a trade deal by the new Aug. 1 deadline. Serbia Tariff rate: 35 percent starting Aug. 1. That's down from 37 percent announced in April. Key exports to the US: Software and IT services; car tires Indonesia Tariff rate: 32 percent starting Aug. 1. That's the same rate that was announced in April. Key exports to the US: Palm oil, cocoa butter and semiconductors Algeria Tariff rate: 30 percent starting Aug. 1. That's the same rate that was announced in April. Key exports to the US: Petroleum, cement and iron products Bosnia and Herzegovina Tariff rate: 30 percent starting Aug. 1. That's down from 35 percent announced in April. Key exports to the US: Weapons and ammunition The European Union Tariff rate: 30 percent starting Aug. 1. That's up from 20 percent announced in April but less than the 50 percent Trump later threatened. Key exports to the US: Pharmaceuticals, cars, aircraft, chemicals, medical instruments, and wine and spirits. Iraq Tariff rate: 30 percent starting Aug. 1. That's down from 39 percent announced in April. Key exports to the US: Crude oil and petroleum products Response: European Commission President Ursula von der Leyen said the tariffs would disrupt essential supply chains 'to the detriment of businesses, consumers and patients on both sides of the Atlantic.' She said the EU remains ready to continue working toward an agreement but will take necessary steps to safeguard EU interests, including countermeasures if required. Libya Tariff rate: 30 percent starting Aug. 1. That's down from 31 percent announced in April. Key exports to the US: Petroleum products Mexico Tariff rate: 30 percent starting Aug. 1. That's up from 25 percent imposed earlier this year on goods that don't comply with the free trade agreement covering the US, Mexico and Canada. Some of Mexico's top exports to the US are subject to other sector-specific tariffs. Key exports to the US: Cars, motor vehicle parts and accessories, crude oil, delivery trucks, computers, agricultural products South Africa Tariff rate: 30 percent starting Aug. 1. That's the same rate that was announced in April. Key exports to the US: Platinum, diamonds, vehicles and auto parts Response: The office of South African President Cyril Ramaphosa said in a statement that the tariff rates announced by Trump mischaracterized the trade relationship with the US, but it would 'continue with its diplomatic efforts toward a more balanced and mutually beneficial trade relationship with the United States' after having proposed a trade framework on May 20. Sri Lanka Tariff rate: 30 percent starting Aug. 1. That's down from 44 percent announced in April. Key exports to the US: Clothing and rubber products Brunei Tariff rate: 25 percent starting Aug. 1. That's up from 24 percent announced in April. Key exports to the US: Mineral fuels and machinery equipment Moldova Tariff rate: 25 percent starting Aug. 1. That's down from 31 percent announced in April. Key exports to the US: Fruit juice, wine, clothing and plastic products Japan Tariff rate: 25 percent starting Aug. 1. That's up from 24 percent announced in April. Key exports to the US: Autos, auto parts, electronic Response: Japanese Prime Minister Shigeru Ishiba called the tariff 'extremely regrettable' but said he was determined to continue negotiating. Kazakhstan Tariff rate: 25 percent starting Aug. 1. That's down from 27 percent announced in April. Key exports to the US: Oil, uranium, ferroalloys and silver Malaysia Tariff rate: 25 percent starting Aug. 1. That's up from 24 percent announced in April. Key exports to the US: Electronics and electrical products Response: Malaysia's government said it will pursue talks with the US A cabinet meeting is scheduled for Wednesday. South Korea Tariff rate: 25 percent starting Aug. 1. That's the same rate that was announced in April. Key exports to the US: Vehicles, machinery and electronics Response: South Korea's Trade Ministry said early Tuesday that it will accelerate negotiations with the United States to achieve a deal before the 25 percent tax goes into effect. Tunisia Tariff rate: 25 percent starting Aug. 1. That's down from 28 percent announced in April. Key exports to the US: Animal and vegetable fats, clothing, fruit and nuts Philippines Tariff rate: 20 percent starting Aug. 1. That's down from 17 percent announced in April. Key exports to the US: Electronics and machinery, clothing and gold
Saudi Gazette
9 hours ago
- Saudi Gazette
Von der Leyen vows to defend EU interests after Trump announces 30% tariffs
BRUSSELS — European Commission President Ursula von der Leyen on Saturday voiced the EU's readiness to continue working toward a trade agreement with the United States before the Aug. 1 deadline, after US President Donald Trump announced sweeping new tariffs on EU and Mexican imports. "We remain ready to continue working towards an agreement by August 1. At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required," von der Leyen said in a written statement. Trump's declaration, delivered in letters to von der Leyen and Mexican President Claudia Sheinbaum and published on his Truth Social account, revealed that the US would begin imposing a 30% tariff on goods imported from both the EU and Mexico starting next month. Von der Leyen emphasized the EU's longstanding commitment to a 'negotiated' solution and stressed that few global economies can match the bloc's level of 'openness and adherence to fair trading practices.' "Imposing 30 percent tariffs on EU exports would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic," she warned. While Trump cited persistent trade deficits and unequal terms in his letter, von der Leyen reaffirmed the EU's position as a reliable and rules-based trading partner. She reiterated that the bloc will not hesitate to take responsive action to protect its economic interests if talks collapse. The tariff threat has cast serious doubts over the future of US-EU trade talks, which were expected to result in a new comprehensive deal this month. — Agencies
Saudi Gazette
9 hours ago
- Saudi Gazette
Trump imposes 30% tariffs on EU and Mexico, warns against retaliation
WASHINGTON — US President Donald Trump announced Saturday that a 30% tariff will be imposed on goods imported from the European Union and Mexico starting August 1, escalating trade tensions with two of Washington's major partners. In a statement posted on Truth Social, Trump shared formal letters addressed to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum, notifying them of the new tariffs. He justified the move as a response to what he called 'long-standing trade imbalances' and 'unfair barriers.' 'To the European Union,' Trump wrote, 'we must move away from these long-term, large, and persistent trade deficits, engendered by your tariff and non-tariff policies.' He added that the US-EU trade relationship 'has been, unfortunately, far from reciprocal.' Trump warned both parties that any retaliatory tariff increases would be met with further hikes. 'Whatever the number you choose to raise them by will be added on to the 30% that we charge,' he stated. In his letter to Mexican President Sheinbaum, Trump acknowledged recent cooperation in stemming the flow of undocumented migrants and fentanyl into the US but criticized what he called Mexico's failure to prevent North America from becoming a 'Narco-Trafficking Playground.' The decision casts a shadow over ongoing US-EU trade negotiations, which Brussels had hoped to finalize this month. The move also follows a fresh wave of tariffs announced earlier this week, including a 50% duty on copper imports and new penalties targeting Japan, South Korea, Canada, and Brazil. — Agencies
