Wall St steadies, investors recover from tariff shock
On Monday, Trump warned partners from Japan and South Korea to smaller players that steep new US tariffs would kick in from August 1 — though he left the door open to delays if countries come forward with fresh proposals.
Japan's top trade negotiator, Ryosei Akazawa, held a 40-minute phone call with US Commerce Secretary Howard Lutnick on Tuesday, where the two sides agreed to "actively" continue negotiations.
In early trading on Tuesday, the Dow Jones Industrial Average fell 33.58 points, or 0.08 per cent, to 44,372.78, the S&P 500 gained 6.03 points, or 0.10 per cent, to 6,236.25 and the Nasdaq Composite gained 37.51 points, or 0.18 per cent, to 20,450.02.
The sentiment has improved since a knee-jerk reaction on Monday, when all major indexes closed sharply lower following the tariff announcement.
In S&P 500 sub-sectors, the energy index led the pack with a one per cent rise, while utilities dropped 1.3 per cent.
In mega-cap stocks, shares of Tesla gained 1.5 per cent after the stock recorded its steepest single-day fall in nearly a month on Monday.
"The market's taking comfort from the fact that the can has been kicked further down the road and the expectation remains that the bark is a lot worse than the bite," said Ben Laidler, head of equity strategy at Bradesco BBI.
The swift market recovery is in stark contrast to the sharp selloff that followed "Liberation Day" tariff announcements three months ago — a rout that plunged the Nasdaq into bear territory and sent the Dow and S&P 500 into correction.
Since then, Wall Street has rebounded, with the Nasdaq and S&P 500 both notching record highs last week, buoyed by a robust labour market that helped quiet recession worries.
"We have not seen any dramatic economic consequences from big increase in tariffs," Laidler added.
The US has so far reached trade agreements with only Britain and Vietnam.
BofA Global Research and Goldman Sachs raised their year-end targets for the S&P 500 index, broadly driven by reduced policy uncertainty, resilient corporate earnings and potential interest rate cuts.
Traders have now all but ruled out a July rate cut from the Federal Reserve, putting the odds of a September cut at around 63 per cent, according to the CME FedWatch tool.
Minutes of the Fed's June rate-setting meeting are scheduled for release on Wednesday, which will offer investors more clarity on when the central bank might resume its policy easing cycle.
Shares of solar stocks fell after Trump on Monday directed federal agencies to strengthen provisions in the One Big Beautiful Bill Act that repeal or modify tax credits for solar and wind energy projects.
SunRun dropped 8.9 per cent, Enphase Energy lost 4.6 per cent and SolarEdge Technologies declined 4.2 per cent.
Advancing issues outnumbered decliners by a 1.57-to-1 ratio on the NYSE, and by a 2.17-to-1 ratio on the Nasdaq.
The S&P 500 posted 15 new 52-week highs and three new lows, while the Nasdaq Composite recorded 47 new highs and 26 new lows.
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Herald Sun
11 minutes ago
- Herald Sun
Trump tariff threat clouds final day of BRICS summit
Don't miss out on the headlines from Breaking News. Followed categories will be added to My News. US President Donald Trump's decision to hit "anti-American" BRICS nations -- including China and India -- with an extra 10 percent trade tariff roiled the final day of the bloc's summit in Rio de Janeiro Monday. Trump threatened the 11-nation grouping -- which includes some of the world's fastest-emerging economies -- late on Sunday, after they warned against his "indiscriminate," damaging and illegal tariff hikes. "Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff," Trump wrote on social media. BRICS members account for about half the world's population and 40 percent of global economic output. Members China, Russia and South Africa responded coolly to Trump's latest verbal barrage, insisting the bloc was not seeking confrontation with Washington. But host Brazil's leftist President Luiz Inacio Lula da Silva was less diplomatic. "We are sovereign nations," Lula said. "We don't want an emperor." Conceived two decades ago as a forum for fast-growing economies, BRICS has come to be seen as a Chinese-driven effort to curb US global influence. But it is a quickly expanding and often divergent grouping -- bringing together arch US foes like Iran and Russia, with some of Washington's closest allies in Latin America, the Middle East, Africa, and Asia. Some US allies inside the bloc had tried to blunt criticism of Trump by not mentioning him or the United States by name in the summit statement. Saudi Arabia -- one of the biggest purchasers of US high-tech weapons -- even kept its foreign minister away from Sunday's talks and a BRICS group photo, seemingly to avoid Washington's ire. But such diplomatic gestures were lost on the US president who said "there will be no exceptions to this policy." - No shows - In April, Trump threatened a slew of punitive duties on dozens of economies, before backing off in the face of a fierce market sell-off. Now he is threatening to impose unilateral levies on trading partners unless they reach "deals" by August 1, with BRICS nations seemingly faced with higher tariffs than planned. It cannot have helped that BRICS leaders also condemned the recent US and Israeli bombing of Iran's nuclear facilities -- a show of solidarity with fellow member Iran. Beijing on Monday insisted BRICS was not seeking confrontation with the United States. "China has repeatedly stated its position that trade and tariff wars have no winners and protectionism offers no way forward," foreign ministry spokeswoman Mao Ning said. Beijing also defended the bloc as "an important platform for cooperation between emerging markets and developing countries." "It advocates openness, inclusivity, and win-win cooperation," Mao said. "It does not engage in camp confrontation and is not targeted at any country," she added. The Kremlin echoed that message with spokesman Dmitry Peskov telling Russian media that BRICS cooperation "has never been and will never be directed against third countries." The political punch of this year's summit has been depleted by the absence of China's Xi Jinping, who skipped the meeting for the first time in his 12 years as president. The Chinese leader is not the only notable absentee. Russian President Vladimir Putin, charged with war crimes in Ukraine, also opted to stay away, participating via video link. He told counterparts that BRICS had become a key player in global governance. arb/aks Originally published as Trump tariff threat clouds final day of BRICS summit
The Advertiser
25 minutes ago
- The Advertiser
Aussie dollar, iron ore threatened as tariff war grows
The value of the Australian dollar could be hit as increased US tariffs on goods from Australia's trading partners impact local exporters. US President Donald Trump has announced 25 per cent tariffs on items from Japan and Korea, which are Australia's second and third-biggest export markets, and its third and fourth-largest two-way trading partners. Though Australia has been spared for now, it is vulnerable to flow-on effects, Monash University economics lecturer Isaac Gross said. One of Australia's main exports to Japan and South Korea is iron ore, which is used to make vehicles that are one of their biggest exports to the US. But if cars are unable to be sold in the American market, that will mean less demand for Australian iron ore, lowering prices. That could and meaning mining giants like BHP and Rio Tinto will make less money and pay less corporate tax. "The principal way that affects the Australian economy is through a lower Australian dollar and less tax revenue," Dr Gross told AAP. "That would affect Australians as a whole ... it would definitely hurt the government's budget line and reduce economic activity, in especially the mining states." There could be some upsides for Australian consumers as South Korean or Japanese goods that would normally have been exported to the US might be sent to Australia at a discounted price. For now, uncertainty has engulfed the tariffs because of the erratic way Mr Trump wields the measures. "A lot of countries that are trying to do deals with the United States are very frustrated," University of Sydney associate professor David Smith told AAP. "They think that negotiations are going in one direction and then Trump makes a sudden announcement that takes it in another direction." Prime Minister Anthony Albanese has faced increasing pressure to schedule a face-to-face meeting with the US president and push for a total tariff exemption. However, it's unclear if that would work. Japanese Prime Minister Shigeru Ishiba met Mr Trump in February, but by July the US president revealed his increased tariffs on the Asian nation and appeared to skip over its leader's name, calling him "Mr Japan" in a recent interview. "I can see why the (Australian) prime minister would be seeking a face-to-face meeting, but it doesn't have the same kind of certainty that it had in the past," Assoc Prof Smith said. "Now we're in a situation where the US is trying to negotiate 100 trade deals at once - it's clearly beyond the capacity of American negotiators. "Trump is getting very frustrated, Trump's blaming other countries for the slowness of the negotiations and now he's lashing out." The value of the Australian dollar could be hit as increased US tariffs on goods from Australia's trading partners impact local exporters. US President Donald Trump has announced 25 per cent tariffs on items from Japan and Korea, which are Australia's second and third-biggest export markets, and its third and fourth-largest two-way trading partners. Though Australia has been spared for now, it is vulnerable to flow-on effects, Monash University economics lecturer Isaac Gross said. One of Australia's main exports to Japan and South Korea is iron ore, which is used to make vehicles that are one of their biggest exports to the US. But if cars are unable to be sold in the American market, that will mean less demand for Australian iron ore, lowering prices. That could and meaning mining giants like BHP and Rio Tinto will make less money and pay less corporate tax. "The principal way that affects the Australian economy is through a lower Australian dollar and less tax revenue," Dr Gross told AAP. "That would affect Australians as a whole ... it would definitely hurt the government's budget line and reduce economic activity, in especially the mining states." There could be some upsides for Australian consumers as South Korean or Japanese goods that would normally have been exported to the US might be sent to Australia at a discounted price. For now, uncertainty has engulfed the tariffs because of the erratic way Mr Trump wields the measures. "A lot of countries that are trying to do deals with the United States are very frustrated," University of Sydney associate professor David Smith told AAP. "They think that negotiations are going in one direction and then Trump makes a sudden announcement that takes it in another direction." Prime Minister Anthony Albanese has faced increasing pressure to schedule a face-to-face meeting with the US president and push for a total tariff exemption. However, it's unclear if that would work. Japanese Prime Minister Shigeru Ishiba met Mr Trump in February, but by July the US president revealed his increased tariffs on the Asian nation and appeared to skip over its leader's name, calling him "Mr Japan" in a recent interview. "I can see why the (Australian) prime minister would be seeking a face-to-face meeting, but it doesn't have the same kind of certainty that it had in the past," Assoc Prof Smith said. "Now we're in a situation where the US is trying to negotiate 100 trade deals at once - it's clearly beyond the capacity of American negotiators. "Trump is getting very frustrated, Trump's blaming other countries for the slowness of the negotiations and now he's lashing out." The value of the Australian dollar could be hit as increased US tariffs on goods from Australia's trading partners impact local exporters. US President Donald Trump has announced 25 per cent tariffs on items from Japan and Korea, which are Australia's second and third-biggest export markets, and its third and fourth-largest two-way trading partners. Though Australia has been spared for now, it is vulnerable to flow-on effects, Monash University economics lecturer Isaac Gross said. One of Australia's main exports to Japan and South Korea is iron ore, which is used to make vehicles that are one of their biggest exports to the US. But if cars are unable to be sold in the American market, that will mean less demand for Australian iron ore, lowering prices. That could and meaning mining giants like BHP and Rio Tinto will make less money and pay less corporate tax. "The principal way that affects the Australian economy is through a lower Australian dollar and less tax revenue," Dr Gross told AAP. "That would affect Australians as a whole ... it would definitely hurt the government's budget line and reduce economic activity, in especially the mining states." There could be some upsides for Australian consumers as South Korean or Japanese goods that would normally have been exported to the US might be sent to Australia at a discounted price. For now, uncertainty has engulfed the tariffs because of the erratic way Mr Trump wields the measures. "A lot of countries that are trying to do deals with the United States are very frustrated," University of Sydney associate professor David Smith told AAP. "They think that negotiations are going in one direction and then Trump makes a sudden announcement that takes it in another direction." Prime Minister Anthony Albanese has faced increasing pressure to schedule a face-to-face meeting with the US president and push for a total tariff exemption. However, it's unclear if that would work. Japanese Prime Minister Shigeru Ishiba met Mr Trump in February, but by July the US president revealed his increased tariffs on the Asian nation and appeared to skip over its leader's name, calling him "Mr Japan" in a recent interview. "I can see why the (Australian) prime minister would be seeking a face-to-face meeting, but it doesn't have the same kind of certainty that it had in the past," Assoc Prof Smith said. "Now we're in a situation where the US is trying to negotiate 100 trade deals at once - it's clearly beyond the capacity of American negotiators. "Trump is getting very frustrated, Trump's blaming other countries for the slowness of the negotiations and now he's lashing out." The value of the Australian dollar could be hit as increased US tariffs on goods from Australia's trading partners impact local exporters. US President Donald Trump has announced 25 per cent tariffs on items from Japan and Korea, which are Australia's second and third-biggest export markets, and its third and fourth-largest two-way trading partners. Though Australia has been spared for now, it is vulnerable to flow-on effects, Monash University economics lecturer Isaac Gross said. One of Australia's main exports to Japan and South Korea is iron ore, which is used to make vehicles that are one of their biggest exports to the US. But if cars are unable to be sold in the American market, that will mean less demand for Australian iron ore, lowering prices. That could and meaning mining giants like BHP and Rio Tinto will make less money and pay less corporate tax. "The principal way that affects the Australian economy is through a lower Australian dollar and less tax revenue," Dr Gross told AAP. "That would affect Australians as a whole ... it would definitely hurt the government's budget line and reduce economic activity, in especially the mining states." There could be some upsides for Australian consumers as South Korean or Japanese goods that would normally have been exported to the US might be sent to Australia at a discounted price. For now, uncertainty has engulfed the tariffs because of the erratic way Mr Trump wields the measures. "A lot of countries that are trying to do deals with the United States are very frustrated," University of Sydney associate professor David Smith told AAP. "They think that negotiations are going in one direction and then Trump makes a sudden announcement that takes it in another direction." Prime Minister Anthony Albanese has faced increasing pressure to schedule a face-to-face meeting with the US president and push for a total tariff exemption. However, it's unclear if that would work. Japanese Prime Minister Shigeru Ishiba met Mr Trump in February, but by July the US president revealed his increased tariffs on the Asian nation and appeared to skip over its leader's name, calling him "Mr Japan" in a recent interview. "I can see why the (Australian) prime minister would be seeking a face-to-face meeting, but it doesn't have the same kind of certainty that it had in the past," Assoc Prof Smith said. "Now we're in a situation where the US is trying to negotiate 100 trade deals at once - it's clearly beyond the capacity of American negotiators. "Trump is getting very frustrated, Trump's blaming other countries for the slowness of the negotiations and now he's lashing out."
The Advertiser
25 minutes ago
- The Advertiser
Honda cuts EV development budget by 30 per cent
Honda is the latest automaker to scale back its electric vehicle plans, with some of the money saved going to hybrid drivetrain development instead. According to The Nikkei, Honda has reduced its spending on EV models due by 2030 from ¥10 trillion (A$100 billion) to ¥7 trillion (A$70 billion). This is a reaction to the slower-than-expected rate of growth of EV adoption in many markets across the world, as well as the scrapping of the US$7500 federal tax rebate for EVs passed as part of US President Donald Trump's One Big Beautiful Bill Act. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. One of the casualties from the budget cut is a three-row SUV aim primarily at the North American market, and initially envisaged as a competitor to the Kia EV9 and Hyundai Ioniq 9. Other manufacturers have changed their large EV SUV plans, with Ford cancelling its large electric crossover, and Toyota USA delaying a similar model from 2026 to 2028. Nissan has also delayed its US-focussed Xterra electric SUV, and its Infiniti sibling by a few years. Despite trimming the EV budget by a third, there are still a number of EVs on Honda's horizon. These include the radically-styled 0 SUV and 0 Saloon (above) unveiled at this year's Consumer Electronics Show in Las Vegas. Honda is also jointly developing the Afeela 1 electric sedan with Sony. With a starting price just below US$90,000 (A$138,000), the Afeela 1 will be a competitor to the Lucid Air, and will likely sell in small numbers. There's a city-friendly hatchback based on the Super EV Concept that will debut at this year's Goodwood Festival of Speed. Around the size of a kei car, the Super EV looks to be a successor of sorts to the retro E hatch. Earlier this month Honda officially ditched its goal of EVs accounting for 30 per cent of global sales by 2030, and instead wants to the hybrid wave. To that end the automaker has committed to launch 13 new hybrid models by 2027, including the upcoming Civic-based Prelude coupe. By 2030, Honda expects to sell around 2.2 million hybrid models every year. For reference, the automaker sold 3.7 million cars of all stripes across the world last year. For China Honda has developed its own dedicated EV platform that's currently used for a pair of SUVs, and the rather attractive Ye GT fastback (above). These are sold in addition to a clutch of HR-V based electric models. Outside of China, though, Honda's EV offerings are slim. There are no Honda EVs for sale in Australia, and in Europe just one model is available: the HR-V-based e:Ny1. While in the States the company offers the GM-built and engineered Honda Prologue and Acura ZDX. MORE: Everything Honda Content originally sourced from: Honda is the latest automaker to scale back its electric vehicle plans, with some of the money saved going to hybrid drivetrain development instead. According to The Nikkei, Honda has reduced its spending on EV models due by 2030 from ¥10 trillion (A$100 billion) to ¥7 trillion (A$70 billion). This is a reaction to the slower-than-expected rate of growth of EV adoption in many markets across the world, as well as the scrapping of the US$7500 federal tax rebate for EVs passed as part of US President Donald Trump's One Big Beautiful Bill Act. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. One of the casualties from the budget cut is a three-row SUV aim primarily at the North American market, and initially envisaged as a competitor to the Kia EV9 and Hyundai Ioniq 9. Other manufacturers have changed their large EV SUV plans, with Ford cancelling its large electric crossover, and Toyota USA delaying a similar model from 2026 to 2028. Nissan has also delayed its US-focussed Xterra electric SUV, and its Infiniti sibling by a few years. Despite trimming the EV budget by a third, there are still a number of EVs on Honda's horizon. These include the radically-styled 0 SUV and 0 Saloon (above) unveiled at this year's Consumer Electronics Show in Las Vegas. Honda is also jointly developing the Afeela 1 electric sedan with Sony. With a starting price just below US$90,000 (A$138,000), the Afeela 1 will be a competitor to the Lucid Air, and will likely sell in small numbers. There's a city-friendly hatchback based on the Super EV Concept that will debut at this year's Goodwood Festival of Speed. Around the size of a kei car, the Super EV looks to be a successor of sorts to the retro E hatch. Earlier this month Honda officially ditched its goal of EVs accounting for 30 per cent of global sales by 2030, and instead wants to the hybrid wave. To that end the automaker has committed to launch 13 new hybrid models by 2027, including the upcoming Civic-based Prelude coupe. By 2030, Honda expects to sell around 2.2 million hybrid models every year. For reference, the automaker sold 3.7 million cars of all stripes across the world last year. For China Honda has developed its own dedicated EV platform that's currently used for a pair of SUVs, and the rather attractive Ye GT fastback (above). These are sold in addition to a clutch of HR-V based electric models. Outside of China, though, Honda's EV offerings are slim. There are no Honda EVs for sale in Australia, and in Europe just one model is available: the HR-V-based e:Ny1. While in the States the company offers the GM-built and engineered Honda Prologue and Acura ZDX. MORE: Everything Honda Content originally sourced from: Honda is the latest automaker to scale back its electric vehicle plans, with some of the money saved going to hybrid drivetrain development instead. According to The Nikkei, Honda has reduced its spending on EV models due by 2030 from ¥10 trillion (A$100 billion) to ¥7 trillion (A$70 billion). This is a reaction to the slower-than-expected rate of growth of EV adoption in many markets across the world, as well as the scrapping of the US$7500 federal tax rebate for EVs passed as part of US President Donald Trump's One Big Beautiful Bill Act. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. One of the casualties from the budget cut is a three-row SUV aim primarily at the North American market, and initially envisaged as a competitor to the Kia EV9 and Hyundai Ioniq 9. Other manufacturers have changed their large EV SUV plans, with Ford cancelling its large electric crossover, and Toyota USA delaying a similar model from 2026 to 2028. Nissan has also delayed its US-focussed Xterra electric SUV, and its Infiniti sibling by a few years. Despite trimming the EV budget by a third, there are still a number of EVs on Honda's horizon. These include the radically-styled 0 SUV and 0 Saloon (above) unveiled at this year's Consumer Electronics Show in Las Vegas. Honda is also jointly developing the Afeela 1 electric sedan with Sony. With a starting price just below US$90,000 (A$138,000), the Afeela 1 will be a competitor to the Lucid Air, and will likely sell in small numbers. There's a city-friendly hatchback based on the Super EV Concept that will debut at this year's Goodwood Festival of Speed. Around the size of a kei car, the Super EV looks to be a successor of sorts to the retro E hatch. Earlier this month Honda officially ditched its goal of EVs accounting for 30 per cent of global sales by 2030, and instead wants to the hybrid wave. To that end the automaker has committed to launch 13 new hybrid models by 2027, including the upcoming Civic-based Prelude coupe. By 2030, Honda expects to sell around 2.2 million hybrid models every year. For reference, the automaker sold 3.7 million cars of all stripes across the world last year. For China Honda has developed its own dedicated EV platform that's currently used for a pair of SUVs, and the rather attractive Ye GT fastback (above). These are sold in addition to a clutch of HR-V based electric models. Outside of China, though, Honda's EV offerings are slim. There are no Honda EVs for sale in Australia, and in Europe just one model is available: the HR-V-based e:Ny1. While in the States the company offers the GM-built and engineered Honda Prologue and Acura ZDX. MORE: Everything Honda Content originally sourced from: Honda is the latest automaker to scale back its electric vehicle plans, with some of the money saved going to hybrid drivetrain development instead. According to The Nikkei, Honda has reduced its spending on EV models due by 2030 from ¥10 trillion (A$100 billion) to ¥7 trillion (A$70 billion). This is a reaction to the slower-than-expected rate of growth of EV adoption in many markets across the world, as well as the scrapping of the US$7500 federal tax rebate for EVs passed as part of US President Donald Trump's One Big Beautiful Bill Act. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. One of the casualties from the budget cut is a three-row SUV aim primarily at the North American market, and initially envisaged as a competitor to the Kia EV9 and Hyundai Ioniq 9. Other manufacturers have changed their large EV SUV plans, with Ford cancelling its large electric crossover, and Toyota USA delaying a similar model from 2026 to 2028. Nissan has also delayed its US-focussed Xterra electric SUV, and its Infiniti sibling by a few years. Despite trimming the EV budget by a third, there are still a number of EVs on Honda's horizon. These include the radically-styled 0 SUV and 0 Saloon (above) unveiled at this year's Consumer Electronics Show in Las Vegas. Honda is also jointly developing the Afeela 1 electric sedan with Sony. With a starting price just below US$90,000 (A$138,000), the Afeela 1 will be a competitor to the Lucid Air, and will likely sell in small numbers. There's a city-friendly hatchback based on the Super EV Concept that will debut at this year's Goodwood Festival of Speed. Around the size of a kei car, the Super EV looks to be a successor of sorts to the retro E hatch. Earlier this month Honda officially ditched its goal of EVs accounting for 30 per cent of global sales by 2030, and instead wants to the hybrid wave. To that end the automaker has committed to launch 13 new hybrid models by 2027, including the upcoming Civic-based Prelude coupe. By 2030, Honda expects to sell around 2.2 million hybrid models every year. For reference, the automaker sold 3.7 million cars of all stripes across the world last year. For China Honda has developed its own dedicated EV platform that's currently used for a pair of SUVs, and the rather attractive Ye GT fastback (above). These are sold in addition to a clutch of HR-V based electric models. Outside of China, though, Honda's EV offerings are slim. There are no Honda EVs for sale in Australia, and in Europe just one model is available: the HR-V-based e:Ny1. While in the States the company offers the GM-built and engineered Honda Prologue and Acura ZDX. MORE: Everything Honda Content originally sourced from:
