Voters in Taiwan reject bid to oust China-friendly lawmakers in setback for president
The independence-leaning ruling Democratic Progressive Party won last year's presidential election, but the China-friendly Nationalists, also known as the KMT, and the smaller Taiwan People's Party have enough seats to form a majority bloc.
Official preliminary results showed that the recall efforts failed to remove any of the two dozen KMT lawmakers. The scale of the recall elections is unprecedented, with seven other KMT lawmakers facing a similar vote on Aug. 23.
The KMT currently holds 52 seats, while the ruling DPP holds 51. For the DPP to secure a legislative majority, at least six KMT lawmakers would need to be ousted, and the ruling party would need to win the by-elections, which must be held within three months of the announcement of results.
For the recall to pass, more than a quarter of eligible voters in the electoral district must vote in favor of it, and the total number of supporters must exceed those voting against.
If next month's poll results are also unfavorable to the DPP, it would mean that the government of Taiwan President Lai Ching-te could continue to face strong resistance in the legislature before elections expected to take place in 2028.
Facing the setback, the president, also known as William Lai, said in a Facebook post that recall attempts and efforts to oppose them are people's legitimate rights under Taiwan's constitutional system.
He thanked his party for its efforts, which he said were not in vain. They furthered the national direction of resisting communists and protecting Taiwan, he said.
'Today's result is neither a victory for one side nor a defeat for another,' he said, adding that he hoped all parties would continue to safeguard Taiwan's democratic system.
KMT chairman Eric Chu told reporters that voters had used their ballots to prove Taiwan's democracy is mature and strong, calling for an apology from Lai.
'All Taiwanese people chose stability, chose that the government should focus on getting things done, rather than engaging in bitter political fighting,' he said.
Despite their huge effort, those backing the recall were facing an 'uphill battle' in trying to unseat lawmakers in well-organized, strongly KMT districts, said Lev Nachman, a professor of political science at National Taiwan University.
The result is going to make it even harder for Lai to push his agenda forward, especially ahead of local elections next year, said Nachman, an expert on Taiwan's elections.
'At the moment, there is very little Lai can do other than try to think of other creative ways to appeal to the public,' he told the Associated Press.
Fu Kun-chi, one of the most powerful and controversial lawmakers targeted in the recall vote, said the result left Lai with no option other than to meet with the opposition and 'find a way for Taiwan to proceed in a more stable way in this chaotic world.'
DPP Secretary-General Lin Yu-chang said the party humbly accepted the results. He said his party has the responsibility to reflect on public sentiment and adjust its approach to meet people's expectations.
Those who support removing the 24 lawmakers have criticized the KMT and its allies for blocking key legislation, especially the defense budget, and passing controversial changes that are seen as diminishing the power of the executive and favoring China, which considers the island its own territory.
The opposition parties' actions sparked concerns among some Taiwanese about the island's democratic integrity and its ability to deter Chinese military threats, leading to the recall campaigns.
But the KMT has accused the ruling party of resorting to political retaliation after it lost the legislative majority, saying the recalls were undermining and challenging Taiwan's democratic system.
The elections have intensified tensions between those backing the status quo and those favoring improved ties with Beijing.
Critics accuse China-friendly politicians of compromising Taiwan's democracy and take issue with their meetings with mainland Chinese politicians. But these politicians say their connections are vital for dialogue given Beijing's refusal to interact with the DPP.
China's Taiwan Affairs Office spokesperson Chen Binhua said the election results showed that the DPP's 'political manipulation' runs against the will of the people, accusing the party of having the ambition to attain 'one-party dominance,' Chinese state news agency Xinhua reported.
Chen said the DPP's acts showed it was 'fake democracy, real authoritarianism.' The office is a branch of China's ruling Communist Party government, which itself maintains strict one-party rule.
Taiwan's mainland affairs council said Wednesday that the Chinese authorities and state media had tried to blatantly interfere with the vote.
Bodeen and Leung write for the Associated Press and reported from Taipei and Hong Kong, respectively.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 hours ago
- Yahoo
Voters in Taiwan reject bid to oust China-friendly lawmakers in closely watched poll
Taiwan Recall Vote TAIPEI, Taiwan (AP) — Taiwanese voters rejected a bid to oust about one-fifth of their lawmakers, all from the opposition Nationalist Party, in a recall election Saturday, dampening hopes for the ruling party to flip the balance of power in the self-ruled island's legislature. The independence-leaning ruling Democratic Progressive Party won last year's presidential election, but the China-friendly Nationalists, also known as the KMT, and the smaller Taiwan People's Party have enough seats to form a majority bloc. Official preliminary results showed that the recall efforts failed to remove any of the two dozen KMT lawmakers. The scale of the recall elections is unprecedented, with another seven KMT lawmakers facing a similar vote on Aug. 23. The KMT currently holds 52 seats, while the ruling DPP holds 51 seats. For the DPP to secure a legislative majority, at least six KMT lawmakers would need to be ousted, and the ruling party would need to win the by-elections, which must be held within three months of the announcement of results. For the recall to pass, more than a quarter of eligible voters in the electoral district must vote in favor of it, and the total number of supporters must exceed those voting against. If next month's poll results are also unfavorable to the DPP, it would mean that the government of Taiwan President Lai Ching-te could continue to face strong resistance from within the legislature before elections expected to take place in 2028. 'An uphill battle' Facing the setback, Lai said in a Facebook post that recall attempts and efforts to oppose them are both people's legitimate rights under its constitutional system. He thanked the civic power, saying the efforts were not in vain. They further established the national direction of resisting communists and protecting Taiwan, he said. 'Today's result is neither a victory for one side nor a defeat for another,' he said, adding that he hoped all parties would continue to safeguard Taiwan's democratic system. KMT chairman Eric Chu told reporters that voters had used their ballots to prove Taiwan's democracy is mature and great, calling for an apology from Lai. 'All Taiwanese people chose stability, chose that the government should focus on getting things done, rather than engaging in bitter political fighting,' he said. Despite their huge effort, those backing the recall were facing an 'uphill battle' in trying to unseat lawmakers in well organized, strongly KMT districts, said Lev Nachman, a professor of political science at National Taiwan University. The result is going to make it even harder for Lai to push his agenda forward, especially ahead of local elections next year, said Nachman, who is an expert on Taiwan's elections. 'At the moment, there is very little Lai can do other than try to think of other creative ways to appeal to the public,' he told The Associated Press. Fu Kun-chi, one of the most powerful and controversial lawmakers targeted, said the result left Lai with no option other than to meet with the opposition and 'find a way for Taiwan to proceed in a more stable way in this chaotic world." DPP Secretary-General Lin Yu-chang said they humbly accepted the results, saying the recall should not be reduced to a victory or defeat for political parties. He said his party has the responsibility to reflect on public sentiment more cautiously and adjust its approach to meet people's expectations. Political retaliation claim Those who support removing the 24 lawmakers have criticized the KMT and its allies for blocking key legislation, especially the defense budget, and passing controversial changes that are seen as diminishing the power of the executive and favoring China, which considers the island its own territory. The opposition parties' actions sparked concerns among some Taiwanese about the island's democratic integrity and its ability to deter Chinese military threats, leading to the recall campaigns. But the KMT has accused the ruling party of resorting to political retaliation after it lost the legislative majority, saying the recalls were undermining and challenging Taiwan's democratic system. Tensions flared over the poll The elections have intensified tensions between those backing the status quo and those favoring improved ties with Beijing. Critics accuse China-friendly politicians of compromising Taiwan and take issue with their meetings with mainland Chinese politicians. But these Taiwanese politicians claim their connections are vital for dialogue given Beijing's refusal to interact with the DPP. China's Taiwan Affairs Office spokesperson Chen Binhua said the election results showed that the DPP's 'political manipulation' runs against the will of the people, accusing the party of having the ambition to attain 'one-party dominance," Chinese state media Xinhua reported. Chen said the DPP's acts showed it was 'fake democracy, real authoritarianism.' The office is a branch of China's ruling Communist Party government, which itself maintains strict one-party rule. Taiwan's mainland affairs council said Wednesday that the Chinese authorities and state media had tried to blatantly interfere with the vote. ____ Leung reported from Hong Kong. Solve the daily Crossword


Forbes
6 hours ago
- Forbes
Political Gridlock In Taiwan: Implications Of The Recall Vote On Cross-strait Relations
Supporters participate in a pro-recall rally in front of Presidential Hall in Taipei on July 24, ... More 2025. Two dozen Taiwanese opposition lawmakers and a mayor will face recall votes on July 26, in ballots that could shift the balance of power in the island's parliament to the ruling party. (Photo by I-Hwa CHENG / AFP) (Photo by I-HWA CHENG/AFP via Getty Images) Whats at Stake? Taiwan is roughly the size of Demark or the state of Maryland, and while known for its exquisite food, night markets, and semiconductor chips is also known for its unique political ecosystem. On Saturday July 26, the Island of 23 million people voted to reject a recall vote in a closely watched spectacle marred by physical brawls by politicians, claims of outside interference by Mainland China, and a heightened social polarization of civil society. Referred to in Chinese as'726大罷免,' or 'The Great Recall,' at its core, is a radically different vision of cross-strait relations, domestic politics, and the ability of the DPP to get its agenda through the legislature. Taiwanese President Lai Ching-te and Party Chair of The DPP came to power in January 2024, however the Presidential election cost the DPP to lose control on its majority of the legislature. The 113-seat Legislature is made up of 52 KMT (Chinese Nationalist Party) members, 51 from the DPP, eight from the Taiwan People's Party (TPP), and two independents aligned with the KMT. Legislators from Taiwan's ruling Kuomintang party (L) try to push an opposition lawmaker off a ... More podium at parliament in Taipei on July 8, 2010. One Taiwanese legislator was injured on the first day of a debate on a new trade pact with China, as rival lawmakers clashed over the controversial agreement. AFP PHOTO/PATRICK LIN (Photo credit should read PATRICK LIN/AFP via Getty Images) This has huge implications as President Trump has put increased pressure on President Lai to increase Taiwan's defense spending by 3% of GDP. For the fiscal year 2025, the Cabinet had previously earmarked USD 22 billion or NT$647 billion for national defense, accounting for 2.45 percent of Taiwan's GDP. "2023 Taiwanese Political Party Views on Defense Spending": ... More measure and other core mandates to the DPP have and can be blocked in the legislature. President Lai and the DPP through a 'recall vote' were hoping to unseat 24 Chinese Nationalist members which would flip the balance of power in the Legislature. Taiwan's constitution allows for lawmakers to engage in a recall vote after their first year in office if at least 10 percent of registered voters in their constituency sign a petition. It is a system that makes recalls quite common, but this is a record number of recalls for the island. Another seven law makers are planning for a recall vote on August 23rd. Advertisement for the July 26 Recall Vote Urging The Public to Vote No to The Great Recall Vote ... More which include The Mayor of Taichung. Supporters of the recall movement have portrayed their campaign as 'anti-communist,' citing a meeting between KMT officials and Wang Huning (王滬寧), the chair of the Chinese People's Political Consultative Conference, on Saturday (April 27). A key objective is to get rid of 'pro-China' opposition KMT lawmakers they perceive as collaborators of Beijing's ruling Communist Party, which vows to 'reunify' Taiwan, by force if necessary. However KMT officials argue that President Lai along with The DPP have chosen not to engage in any dialogue with mainland Chinese officials and believe that only through open and sustained dialogue can meaningful changer occur on issues relating to cross-strait relations. Why was the recall vote rejected? TAIPEI, TAIWAN - JULY 24: People, holding placards which read 'Great Recall, Great Success' and ' ... More For love, we recall', brave the rain during a rally calling for support to recall lawmakers of the Pro-Beijing Kuomintang (KMT) party, in Taipei, Taiwan, on July 25, 2025. More than 20 legislators from the Kuomintang, or the Nationalist Party, who are considered to be close to Beijing or pro-China will face a recall voting on July 26, as people across Taiwan are set vote to decide whether they should be eliminated from the parliament. (Photo by Daniel Ceng/Anadolu via Getty Images) Up until July 26, massive rallies from both DPP, KMT, TPP and other socials groups alike had seen over 50,000 people gathered to protest in Taipei and other cities. However by Saturday evening according to the Central Election Commission data, the number of voters casting a "yes" vote to recall exceeded the 25 percent of eligible voters, making it the seventh recall vote to meet the required threshold. However, the number of votes in favor of the recall still fell short of the number of votes against it. By Saturday evening TVBS Live noted that there were 94,808 votes in favor of the recall but 121,592 votes against the recall. My wife, Mother in law and Father in law going to vote at one of the 5,947 polling stations set up ... More in 9 counties and cities in Taiwan on Saturday, July 26, 2025 An important reason why the recall vote was defeated is a testament to the Taiwanese people's desire to maintain a thriving democracy and a semblance of checks and balances, but on a very practice level, saw the KMT and TPP work closely together for self-preservation. Professor Kwei-Bo Huang, former deputy secretary-general at the Kuomintang (KMT) and a professor of diplomacy at National Chengchi University in Taipei argues that, 'The silent majority spoke and believes that a system of checks and balances must exist to ensure the Republic of China government can maintain democracy which is not ruled by one voice.' He also believed that seeing how the ruling DPP had gained full control over the Executive Yuan and had the ability to sway the Constitutional Court would be setting a dangerous precedent. DPP Secretary-General Lin Yu-chang (林右昌) in acknowledging defeat of the recall tried to downplay the results of the 'recall vote as a win for the KMT and TPP party but rather placing emphasis on Taiwanese voters and their commitment to democracy saying, 'This was not a confrontation between parties, but a demonstration of civic power." The morning headlines of the three major newspapers in Taiwan said it all. The Liberty Times (自由时报) which is a more pro DPP newspaper made no reference at all of the 'Great Recall Vote' and instead highlighted Taiwanese athletes attending the Summer World University Games in Germany. The 联合报 (United Daily Press) in its headlines wrote '25:0 The Great Recall A Complete Failure.' The China Times wrote, 'The First Great Recall Vote: The Green Camp Defeated.' Headlines of The Major Newspapers in Taiwan According to the Central Election Commission data, the number of voters casting a "yes" vote exceeded 25 percent of eligible voters, making it the seventh recall vote to meet the required threshold. However, the number of votes in favor of the recall still fell short of the number of votes against it. According to TVBS Live news showed that 94,808 people had voted in favor of the recall vote while 121,592 people had voted against the recall vote. TVBS Live News posting the latest results of the Great Recall Saturday evening, July 26, 2025 ... More showing the number of votes who voted in favor of The Great Recall were 94,808, the number of votes against the Recall were 121,592. Broader Implications of the Recall Vote: Saturdays historic vote has no doubt emboldened and rejuvenated the base of the KMT and TPP in their ability to wield power and influence in the legislature. A key objective is to position the KMT and TPP to advance a more constructive narrative towards cross- strait relations and a check on DPP's power base and sustain this momentum until the next Presidential election. From the perspective of the DPP, the results of the recall casts doubts on President Lai and raises fundamental questions on how the DPP can pursue their agenda and get it passed through the legislature when they view the opposition parties like the KMT and TPP as undermining democratic institutions and national security by obstructing Lai's administration, strong-arming controversial laws, freezing defense spending and implementing budget cuts. President Lai also runs the risk of being viewed as a lame duck if recall votes as a tactical approach continue to be defeated. While the DPP will be under significant pressure to acquiesce to US President Trump in a more transactional relationship, having opposition parties that can balance certain interests may well serve to be more in line with Taiwan's ultimate national interest. The reality is that the DPP needs to redefine how it engages with Mainland China. Taiwan engaging with Mainland China need not be a zero-sum game. In the same way, Taiwan engaging with the US should not just be about purchasing US military equipment. This is not to say that Taiwan should not invest more in defending its economy, but rather a more wholistic engagement and strategy on trade, education, technology with the US should be pursued as well as developing and coordinating policies with countries like Japan, South Korea, Europe, Australia, India, Southeast Asia and other regional institutions, non-state actors, and entities. Having checks and balances is not just a part of a democracy, it is foundational. Special thanks to Nathaniel Schochet and Jonah Kim for gathering and sharing articles. I am also grateful to Hanah Kim for gathering and sharing images.
Yahoo
9 hours ago
- Yahoo
Trump tariffs live updates: US-EU agreement announced. China truce extension expected.
President Trump and European Commission President Ursula von der Leyen announced that the US and EU had agreed to the framework of a trade deal after negotiations in Scotland on Sunday. Trump called the deal 'the biggest of them all,' while von der Leyen said that the EU had agree to 15% tariffs "across the board." Details of the framework are still being confirmed. Earlier on Sunday the South China Morning Post, a Hong Kong-based English-language newspaper, reported that "Beijing and Washington are expected to extend their tariff truce by another three months at trade talks in Stockholm beginning on Monday." On Friday, Trump said that letters dictating tariff rates for over 200 countries would go out soon while his administration works to clinch deals with larger trade partners, including the EU, India, and Canada. Trump said the US hasn't had a "lot of luck" with Canada and suggested he may impose threatened 35% levies on goods not covered by the US-Canada-Mexico trade agreement. Last week, President Trump touted a deal with Japan that included a $550 billion investment in the US and a 15% tariff on goods imported into the US from Japan. On Saturday, Japanese trade negotiator Ryosei Akazawa suggested the money could be used to help finance an unnamed Taiwanese chipmaker building plants in the US. "For example, if a Taiwanese chipmaker builds a plant in the U.S. and uses Japanese components or tailors its products to meet Japanese needs, that's fine too," he said. In March, Taiwan's TSMC announced a $100 billion investment in the US, on top of plans to build three plants in Arizona, one of which is already operating. In any case, the Japan trade deal may have set a precedent for Trump's new baseline tariff rate. On Thursday, Trump said tariffs would range from 15% to 50%, with tougher partners facing higher rates. Trump's April "Liberation Day" tariffs had set a baseline rate of 10% on all US trading partners. Read more: What Trump's tariffs mean for the economy and your wallet Here are the latest updates as the policy reverberates around the world. EU-US trade agreement preliminary details Here are some Bloomberg terminal headlines with various details on the agreement reached between President Trump and European Commission President Ursula von der Leyen: *TRUMP: WE HAVE REACHED A DEAL WITH EU *TRUMP: EU WILL AGREE TO BUY US $750B WORTH OF ENERGY *TRUMP: EU WILL AGREE TO INVEST $600B MORE THAN PREVIOUSLY IN US *EU'S VON DER LEYEN: TREADE DEAL WITH US WILL BRING STABILITY *VON DER LEYEN: AGREED TO 15% ACROSS THE BOARD TARIFFS The asserted details of the framework are not yet fully confirmed. SCMP reports China-US another 90-day tariff extension The South China Morning Post (SCMP) reported that "Beijing and Washington are expected to extend their tariff truce by another three months at trade talks in Stockholm beginning on Monday." More from the Hong-Kong-based SCMP: Read more here. Lutnick: EU has to offer Trump 'a good enough deal' to avoid 30% tariffs As President Trump prepares for a planned meeting about tariffs with European Commission President Ursula von der Leyen, Commerce Secretary Howard Lutnick said Sunday that the European Union has to open its markets for US exports if it wants to convince Trump to reduce the 30% tariff he's threatened to put in place August 1. Reuters reports Lutnick said the EU appeared to want to make a deal: On Friday, Trump said the odds of a trade deal with the EU were about "50-50," even as negotiators from both sides expressed optimism. Read more here. LG says consumers rushed to buy appliances ahead of tariffs Tariffs remain a key concern for South Korean appliance maker LG Electronics ( The company said that if President Trump's blanket tariffs take effect on Aug. 1, it will adjust prices and move some production to its plants in Mexico and the US. LG produces its products worldwide, particularly in South Korea, China, and Vietnam. On Aug. 1, imports from South Korea face a 25% tariff, while those from Vietnam face a 20% tariff. Imports from China are estimated to face tariffs of roughly 50%, though that could change after US and Chinese officials meet in Sweden for the next round of trade talks. According to LG, consumers rushed to purchase items in the first half of the year to avoid tariffs. Still, the company's net profit fell 3.1% in Q2 as operating costs increased. "Some consumers have been rushing to make purchases before the tariffs take effect," an executive said on the earnings call. "In the first half of 2025, we achieved approximately 3% growth year over year, higher than the market demand with new product launches and efficient sales operations, continuing to strengthen our market presence." But that pull-forward in demand could signal weakness ahead in the months to come if trade tensions escalate again. "A rise in product costs driven by the 50% tariff on steel and reciprocal tariffs that are set to be applied in the latter half of the year could translate into greater uncertainties for the market price," the executive said. "Additionally, shifts in the US government's trade policies and weakening consumer sentiment cast doubt on the demand outlook for home appliances." This isn't the first time LG has grappled with US protectionist policies. In 2018, during Trump's first term, washing machine prices rose when Trump targeted the industry with tariffs. Japan says $550 billion investment could finance Taiwanese chipmaker in US The $550 billion President Trump said Japan gave to the US "to lower their tariffs a little bit," could be used to help finance a Taiwanese chipmaker building plants in the US, the Associated Press reported Saturday. Trump on Thursday called the $550 billion "seed money" and that 90% of profits from the money invested would go to the US. "It's not a loan or anything, it's a signing bonus," Trump said. Read more here. More cracks form in the US-Japan trade agreement We detailed earlier (keep scrolling) some initial, if gentle, pushback from the Japanese side on the US portrayal of the countries' trade deal. The Financial Times has a good, detailed look at some of the "cracks" forming: Read more here (subscription required). EU head to meet with Trump this weekend in bid to clinch deal Bloomberg reports that European Commission President Ursula von der Leyen will meet with President Trump this weekend as he travels to his golf club in Scotland in a bid to secure a trade deal. The meeting will come as the two sides race to secure a deal ahead of next Friday — Trump's self-imposed deadline for 30% tariffs on EU goods to kick in. On Friday, Trump put the odds of a deal at "50-50." From the report: Trump: 'We haven't really had a lot of luck with Canada' President Trump on Friday expressed pessimism on US trade negotiations with Canada, suggesting he may simply impose threatened 35% tariffs on Canadian goods not covered by the existing US-Canada-Mexico trade agreement. "We haven't really had a lot of luck with Canada. I think Canada could be one where there's just a tariff, not really a negotiation," he said. More from Reuters: Boston Beer Company says strong profits helped brewer absorb tariff costs The Boston Beer Company (SAM) continues to feel the effects of President Trump's tariffs, but a strong quarter of sales and profit is helping the Samuel Adams brewer absorb some of those cost increases. Boston Beer expects tariffs to add about $15 million to $20 million in costs for the full year. Previously, it modeled tariff costs of $20 million to $30 million. Expect the company to raise prices by 1% to 2% to offset some of the costs as well, executives said. Boston Beer did see tariffs negatively affect its gross margin toward the end of the second quarter, but it benefited from improved brewery efficiencies. For the second quarter, the company reported profits of $5.45 per share on revenue of $625 million, versus estimates for earnings of $4.00 per share on $588 million, according to S&P Global Market Intelligence. "Right now, I think we're very happy with the performance," Boston Beer CEO Michael Spillane said on the earnings call. "Not only that, but that's allowed us to offset some of the tariffs that we've seen so far." Some headlines from Trump on tariffs this morning Via Bloomberg: Trump: US will sell 'so much' beef to Australia President Trump said on Thursday that the US will sell "so much" beef to Australia, following Canberra relaxing import restrictions. Trump added that other countries who had refused US beef products were on notice. Reuters reports: Read more here. World's No. 3 automaker Kia takes $570M tariff hit in Q2 Reuters reports: Read more here. Puma shares dive after warning of full-year loss, US tariff impact Puma ( shares fell 17% on Friday after the sportswear brand said that it now expects an annual loss due to a decline in sales and US tariffs denting profit. Reuters reports: Read more here. LG Energy Solution warns of slowing EV battery demand due to U.S. tariffs, policy headwinds Reuters reports: South Korean battery firm LG Energy ( Solution warned on Friday of a further slowdown in demand by early next year due to U.S. tariffs and policy uncertainties after it posted a quarterly profit jump. Its major customers Tesla (TSLA) and General Motors (GM) warned of fallout from U.S. tariffs and legislation that will end federal subsidies for EV purchases on September 30. "US tariffs and an early end to EV subsidies will put a burden on automakers, potentially leading to vehicle price increases and a slowdown in EV growth in North America," CFO Lee Chang-sil said during a conference call. Read more here. Japan, US differ on how trade-deal profits will be split Japan said Friday that profits from the $550 billion investment deal with the US will be shared based on how much each side contributes. A government official suggested the US will also put in significant funds, but details of the scheme remain unclear. The White House had announced earlier in the week that the US would retain 90% of the profits from the $550 billion US-bound investment and loans that Japan would exchange in return for reduced tariffs on auto and other exports to the US. This would mean that returns would be split 10% for Japan and 90% for the US, according to the White House official, and that it would be "based on the respective levels of contribution and risk borne by each side." Bloomberg News reports: Read more here. US business activity rises; tariffs fuel inflation concerns US business activity rose in July, but companies increased the prices for goods and services, supporting the view from economists that inflation will accelerate in the second half of 2025 and it will mainly be due to tariffs on imports. Reuters reports: Read more here. It sounds like Trump now has a new minimum tariff rate: 15% President Trump set a new rhetorical floor for tariffs on Wednesday night in comments in a shift that raises the president's baseline rate from 10%. Yahoo Finance's Ben Werschkul writes: Read more here. Keurig Dr. Pepper brewer sales volume drops 22%, CEO says tariff impacts 'will become prominent' Keurig Dr. Pepper CEO Tim Cofer said that tariffs are putting additional pressure on the company in an earnings call Thursday, especially when it comes to its coffee business, which KDP expects to be "subdued" for the remainder of the year. "Commodity inflation will build as we roll into the back half and we roll into our higher cost hedges on green coffee," Cofer said. "The tariff impacts will become prominent. And we all know that tariff situation is a bit fluid." Keurig is one of the biggest coffee importers in the US, along with Starbucks (SBUX) and Nestle (NSRGY). The US sources most of its coffee from Brazil, which is set to face 50% tariffs on its products on Aug. 1, and Colombia, which faces a tariff rate of 10%. In Keurig's coffee business, appliance volume decreased 22.6% during the quarter, reflecting impacts of retailer inventory management, and K-Cup pod volume decreased 3.7%, reflecting category elasticity in response to price increases, the company reported. "Our retail partners will likely continue to manage their inventory levels tightly, in particular on brewers," Cofer commented. "And then finally, you know we did a round of pricing at the beginning of the year. We've announced another round of pricing that will take effect next month, and we'll need to closely monitor how that elasticity evolves." Read more about Keurig earnings here. The EU's Trump insurance As my colleague detailed below, EU member states voted to impose tariffs on over $100 billion of US goods from Aug. 7. The Financial Times reported that this move that allows the bloc to impose the levies quickly at any point in the future should its trade relationship with the US take a turn for the worse. From the report: Read more here (subscription required). Europe approves $100B-plus tariff backup plan A report in the Wall Street Journal on Thursday said that the European Union has now approved its retaliatory tariff package on US goods that could start in August if no trade agreement is reached. The EU announced on Wednesday that it will hit the US with 30% tariffs on over $100 billion worth of goods in the event that no deal is made and if President Trump decides to follow through with his threat to impose that rate on most of the bloc's exports after Aug. 1. The US exports, which would include goods such as Boeing (BA) aircraft, US-made cars and bourbon whiskey would all face heavy tariffs that match Trump's 30% threat. The approval of the package comes despite the growing optimism that the US and EU will reach a deal that would put baseline tariffs on the bloc at 15%, matching the level the US applied to Japan. The EU is keen to reach a deal with the US but as a cautionary measure has approved 30% tariffs if a deal is not made. EU-US trade agreement preliminary details Here are some Bloomberg terminal headlines with various details on the agreement reached between President Trump and European Commission President Ursula von der Leyen: *TRUMP: WE HAVE REACHED A DEAL WITH EU *TRUMP: EU WILL AGREE TO BUY US $750B WORTH OF ENERGY *TRUMP: EU WILL AGREE TO INVEST $600B MORE THAN PREVIOUSLY IN US *EU'S VON DER LEYEN: TREADE DEAL WITH US WILL BRING STABILITY *VON DER LEYEN: AGREED TO 15% ACROSS THE BOARD TARIFFS The asserted details of the framework are not yet fully confirmed. Here are some Bloomberg terminal headlines with various details on the agreement reached between President Trump and European Commission President Ursula von der Leyen: *TRUMP: WE HAVE REACHED A DEAL WITH EU *TRUMP: EU WILL AGREE TO BUY US $750B WORTH OF ENERGY *TRUMP: EU WILL AGREE TO INVEST $600B MORE THAN PREVIOUSLY IN US *EU'S VON DER LEYEN: TREADE DEAL WITH US WILL BRING STABILITY *VON DER LEYEN: AGREED TO 15% ACROSS THE BOARD TARIFFS The asserted details of the framework are not yet fully confirmed. SCMP reports China-US another 90-day tariff extension The South China Morning Post (SCMP) reported that "Beijing and Washington are expected to extend their tariff truce by another three months at trade talks in Stockholm beginning on Monday." More from the Hong-Kong-based SCMP: Read more here. The South China Morning Post (SCMP) reported that "Beijing and Washington are expected to extend their tariff truce by another three months at trade talks in Stockholm beginning on Monday." More from the Hong-Kong-based SCMP: Read more here. Lutnick: EU has to offer Trump 'a good enough deal' to avoid 30% tariffs As President Trump prepares for a planned meeting about tariffs with European Commission President Ursula von der Leyen, Commerce Secretary Howard Lutnick said Sunday that the European Union has to open its markets for US exports if it wants to convince Trump to reduce the 30% tariff he's threatened to put in place August 1. Reuters reports Lutnick said the EU appeared to want to make a deal: On Friday, Trump said the odds of a trade deal with the EU were about "50-50," even as negotiators from both sides expressed optimism. Read more here. As President Trump prepares for a planned meeting about tariffs with European Commission President Ursula von der Leyen, Commerce Secretary Howard Lutnick said Sunday that the European Union has to open its markets for US exports if it wants to convince Trump to reduce the 30% tariff he's threatened to put in place August 1. Reuters reports Lutnick said the EU appeared to want to make a deal: On Friday, Trump said the odds of a trade deal with the EU were about "50-50," even as negotiators from both sides expressed optimism. Read more here. LG says consumers rushed to buy appliances ahead of tariffs Tariffs remain a key concern for South Korean appliance maker LG Electronics ( The company said that if President Trump's blanket tariffs take effect on Aug. 1, it will adjust prices and move some production to its plants in Mexico and the US. LG produces its products worldwide, particularly in South Korea, China, and Vietnam. On Aug. 1, imports from South Korea face a 25% tariff, while those from Vietnam face a 20% tariff. Imports from China are estimated to face tariffs of roughly 50%, though that could change after US and Chinese officials meet in Sweden for the next round of trade talks. According to LG, consumers rushed to purchase items in the first half of the year to avoid tariffs. Still, the company's net profit fell 3.1% in Q2 as operating costs increased. "Some consumers have been rushing to make purchases before the tariffs take effect," an executive said on the earnings call. "In the first half of 2025, we achieved approximately 3% growth year over year, higher than the market demand with new product launches and efficient sales operations, continuing to strengthen our market presence." But that pull-forward in demand could signal weakness ahead in the months to come if trade tensions escalate again. "A rise in product costs driven by the 50% tariff on steel and reciprocal tariffs that are set to be applied in the latter half of the year could translate into greater uncertainties for the market price," the executive said. "Additionally, shifts in the US government's trade policies and weakening consumer sentiment cast doubt on the demand outlook for home appliances." This isn't the first time LG has grappled with US protectionist policies. In 2018, during Trump's first term, washing machine prices rose when Trump targeted the industry with tariffs. Tariffs remain a key concern for South Korean appliance maker LG Electronics ( The company said that if President Trump's blanket tariffs take effect on Aug. 1, it will adjust prices and move some production to its plants in Mexico and the US. LG produces its products worldwide, particularly in South Korea, China, and Vietnam. On Aug. 1, imports from South Korea face a 25% tariff, while those from Vietnam face a 20% tariff. Imports from China are estimated to face tariffs of roughly 50%, though that could change after US and Chinese officials meet in Sweden for the next round of trade talks. According to LG, consumers rushed to purchase items in the first half of the year to avoid tariffs. Still, the company's net profit fell 3.1% in Q2 as operating costs increased. "Some consumers have been rushing to make purchases before the tariffs take effect," an executive said on the earnings call. "In the first half of 2025, we achieved approximately 3% growth year over year, higher than the market demand with new product launches and efficient sales operations, continuing to strengthen our market presence." But that pull-forward in demand could signal weakness ahead in the months to come if trade tensions escalate again. "A rise in product costs driven by the 50% tariff on steel and reciprocal tariffs that are set to be applied in the latter half of the year could translate into greater uncertainties for the market price," the executive said. "Additionally, shifts in the US government's trade policies and weakening consumer sentiment cast doubt on the demand outlook for home appliances." This isn't the first time LG has grappled with US protectionist policies. In 2018, during Trump's first term, washing machine prices rose when Trump targeted the industry with tariffs. Japan says $550 billion investment could finance Taiwanese chipmaker in US The $550 billion President Trump said Japan gave to the US "to lower their tariffs a little bit," could be used to help finance a Taiwanese chipmaker building plants in the US, the Associated Press reported Saturday. Trump on Thursday called the $550 billion "seed money" and that 90% of profits from the money invested would go to the US. "It's not a loan or anything, it's a signing bonus," Trump said. Read more here. The $550 billion President Trump said Japan gave to the US "to lower their tariffs a little bit," could be used to help finance a Taiwanese chipmaker building plants in the US, the Associated Press reported Saturday. Trump on Thursday called the $550 billion "seed money" and that 90% of profits from the money invested would go to the US. "It's not a loan or anything, it's a signing bonus," Trump said. Read more here. More cracks form in the US-Japan trade agreement We detailed earlier (keep scrolling) some initial, if gentle, pushback from the Japanese side on the US portrayal of the countries' trade deal. The Financial Times has a good, detailed look at some of the "cracks" forming: Read more here (subscription required). We detailed earlier (keep scrolling) some initial, if gentle, pushback from the Japanese side on the US portrayal of the countries' trade deal. The Financial Times has a good, detailed look at some of the "cracks" forming: Read more here (subscription required). EU head to meet with Trump this weekend in bid to clinch deal Bloomberg reports that European Commission President Ursula von der Leyen will meet with President Trump this weekend as he travels to his golf club in Scotland in a bid to secure a trade deal. The meeting will come as the two sides race to secure a deal ahead of next Friday — Trump's self-imposed deadline for 30% tariffs on EU goods to kick in. On Friday, Trump put the odds of a deal at "50-50." From the report: Bloomberg reports that European Commission President Ursula von der Leyen will meet with President Trump this weekend as he travels to his golf club in Scotland in a bid to secure a trade deal. The meeting will come as the two sides race to secure a deal ahead of next Friday — Trump's self-imposed deadline for 30% tariffs on EU goods to kick in. On Friday, Trump put the odds of a deal at "50-50." From the report: Trump: 'We haven't really had a lot of luck with Canada' President Trump on Friday expressed pessimism on US trade negotiations with Canada, suggesting he may simply impose threatened 35% tariffs on Canadian goods not covered by the existing US-Canada-Mexico trade agreement. "We haven't really had a lot of luck with Canada. I think Canada could be one where there's just a tariff, not really a negotiation," he said. More from Reuters: President Trump on Friday expressed pessimism on US trade negotiations with Canada, suggesting he may simply impose threatened 35% tariffs on Canadian goods not covered by the existing US-Canada-Mexico trade agreement. "We haven't really had a lot of luck with Canada. I think Canada could be one where there's just a tariff, not really a negotiation," he said. More from Reuters: Boston Beer Company says strong profits helped brewer absorb tariff costs The Boston Beer Company (SAM) continues to feel the effects of President Trump's tariffs, but a strong quarter of sales and profit is helping the Samuel Adams brewer absorb some of those cost increases. Boston Beer expects tariffs to add about $15 million to $20 million in costs for the full year. Previously, it modeled tariff costs of $20 million to $30 million. Expect the company to raise prices by 1% to 2% to offset some of the costs as well, executives said. Boston Beer did see tariffs negatively affect its gross margin toward the end of the second quarter, but it benefited from improved brewery efficiencies. For the second quarter, the company reported profits of $5.45 per share on revenue of $625 million, versus estimates for earnings of $4.00 per share on $588 million, according to S&P Global Market Intelligence. "Right now, I think we're very happy with the performance," Boston Beer CEO Michael Spillane said on the earnings call. "Not only that, but that's allowed us to offset some of the tariffs that we've seen so far." The Boston Beer Company (SAM) continues to feel the effects of President Trump's tariffs, but a strong quarter of sales and profit is helping the Samuel Adams brewer absorb some of those cost increases. Boston Beer expects tariffs to add about $15 million to $20 million in costs for the full year. Previously, it modeled tariff costs of $20 million to $30 million. Expect the company to raise prices by 1% to 2% to offset some of the costs as well, executives said. Boston Beer did see tariffs negatively affect its gross margin toward the end of the second quarter, but it benefited from improved brewery efficiencies. For the second quarter, the company reported profits of $5.45 per share on revenue of $625 million, versus estimates for earnings of $4.00 per share on $588 million, according to S&P Global Market Intelligence. "Right now, I think we're very happy with the performance," Boston Beer CEO Michael Spillane said on the earnings call. "Not only that, but that's allowed us to offset some of the tariffs that we've seen so far." Some headlines from Trump on tariffs this morning Via Bloomberg: Via Bloomberg: Trump: US will sell 'so much' beef to Australia President Trump said on Thursday that the US will sell "so much" beef to Australia, following Canberra relaxing import restrictions. Trump added that other countries who had refused US beef products were on notice. Reuters reports: Read more here. President Trump said on Thursday that the US will sell "so much" beef to Australia, following Canberra relaxing import restrictions. Trump added that other countries who had refused US beef products were on notice. Reuters reports: Read more here. World's No. 3 automaker Kia takes $570M tariff hit in Q2 Reuters reports: Read more here. Reuters reports: Read more here. Puma shares dive after warning of full-year loss, US tariff impact Puma ( shares fell 17% on Friday after the sportswear brand said that it now expects an annual loss due to a decline in sales and US tariffs denting profit. Reuters reports: Read more here. Puma ( shares fell 17% on Friday after the sportswear brand said that it now expects an annual loss due to a decline in sales and US tariffs denting profit. Reuters reports: Read more here. LG Energy Solution warns of slowing EV battery demand due to U.S. tariffs, policy headwinds Reuters reports: South Korean battery firm LG Energy ( Solution warned on Friday of a further slowdown in demand by early next year due to U.S. tariffs and policy uncertainties after it posted a quarterly profit jump. Its major customers Tesla (TSLA) and General Motors (GM) warned of fallout from U.S. tariffs and legislation that will end federal subsidies for EV purchases on September 30. "US tariffs and an early end to EV subsidies will put a burden on automakers, potentially leading to vehicle price increases and a slowdown in EV growth in North America," CFO Lee Chang-sil said during a conference call. Read more here. Reuters reports: South Korean battery firm LG Energy ( Solution warned on Friday of a further slowdown in demand by early next year due to U.S. tariffs and policy uncertainties after it posted a quarterly profit jump. Its major customers Tesla (TSLA) and General Motors (GM) warned of fallout from U.S. tariffs and legislation that will end federal subsidies for EV purchases on September 30. "US tariffs and an early end to EV subsidies will put a burden on automakers, potentially leading to vehicle price increases and a slowdown in EV growth in North America," CFO Lee Chang-sil said during a conference call. Read more here. Japan, US differ on how trade-deal profits will be split Japan said Friday that profits from the $550 billion investment deal with the US will be shared based on how much each side contributes. A government official suggested the US will also put in significant funds, but details of the scheme remain unclear. The White House had announced earlier in the week that the US would retain 90% of the profits from the $550 billion US-bound investment and loans that Japan would exchange in return for reduced tariffs on auto and other exports to the US. This would mean that returns would be split 10% for Japan and 90% for the US, according to the White House official, and that it would be "based on the respective levels of contribution and risk borne by each side." Bloomberg News reports: Read more here. Japan said Friday that profits from the $550 billion investment deal with the US will be shared based on how much each side contributes. A government official suggested the US will also put in significant funds, but details of the scheme remain unclear. The White House had announced earlier in the week that the US would retain 90% of the profits from the $550 billion US-bound investment and loans that Japan would exchange in return for reduced tariffs on auto and other exports to the US. This would mean that returns would be split 10% for Japan and 90% for the US, according to the White House official, and that it would be "based on the respective levels of contribution and risk borne by each side." Bloomberg News reports: Read more here. US business activity rises; tariffs fuel inflation concerns US business activity rose in July, but companies increased the prices for goods and services, supporting the view from economists that inflation will accelerate in the second half of 2025 and it will mainly be due to tariffs on imports. Reuters reports: Read more here. US business activity rose in July, but companies increased the prices for goods and services, supporting the view from economists that inflation will accelerate in the second half of 2025 and it will mainly be due to tariffs on imports. Reuters reports: Read more here. It sounds like Trump now has a new minimum tariff rate: 15% President Trump set a new rhetorical floor for tariffs on Wednesday night in comments in a shift that raises the president's baseline rate from 10%. Yahoo Finance's Ben Werschkul writes: Read more here. President Trump set a new rhetorical floor for tariffs on Wednesday night in comments in a shift that raises the president's baseline rate from 10%. Yahoo Finance's Ben Werschkul writes: Read more here. Keurig Dr. Pepper brewer sales volume drops 22%, CEO says tariff impacts 'will become prominent' Keurig Dr. Pepper CEO Tim Cofer said that tariffs are putting additional pressure on the company in an earnings call Thursday, especially when it comes to its coffee business, which KDP expects to be "subdued" for the remainder of the year. "Commodity inflation will build as we roll into the back half and we roll into our higher cost hedges on green coffee," Cofer said. "The tariff impacts will become prominent. And we all know that tariff situation is a bit fluid." Keurig is one of the biggest coffee importers in the US, along with Starbucks (SBUX) and Nestle (NSRGY). The US sources most of its coffee from Brazil, which is set to face 50% tariffs on its products on Aug. 1, and Colombia, which faces a tariff rate of 10%. In Keurig's coffee business, appliance volume decreased 22.6% during the quarter, reflecting impacts of retailer inventory management, and K-Cup pod volume decreased 3.7%, reflecting category elasticity in response to price increases, the company reported. "Our retail partners will likely continue to manage their inventory levels tightly, in particular on brewers," Cofer commented. "And then finally, you know we did a round of pricing at the beginning of the year. We've announced another round of pricing that will take effect next month, and we'll need to closely monitor how that elasticity evolves." Read more about Keurig earnings here. Keurig Dr. Pepper CEO Tim Cofer said that tariffs are putting additional pressure on the company in an earnings call Thursday, especially when it comes to its coffee business, which KDP expects to be "subdued" for the remainder of the year. "Commodity inflation will build as we roll into the back half and we roll into our higher cost hedges on green coffee," Cofer said. "The tariff impacts will become prominent. And we all know that tariff situation is a bit fluid." Keurig is one of the biggest coffee importers in the US, along with Starbucks (SBUX) and Nestle (NSRGY). The US sources most of its coffee from Brazil, which is set to face 50% tariffs on its products on Aug. 1, and Colombia, which faces a tariff rate of 10%. In Keurig's coffee business, appliance volume decreased 22.6% during the quarter, reflecting impacts of retailer inventory management, and K-Cup pod volume decreased 3.7%, reflecting category elasticity in response to price increases, the company reported. "Our retail partners will likely continue to manage their inventory levels tightly, in particular on brewers," Cofer commented. "And then finally, you know we did a round of pricing at the beginning of the year. We've announced another round of pricing that will take effect next month, and we'll need to closely monitor how that elasticity evolves." Read more about Keurig earnings here. The EU's Trump insurance As my colleague detailed below, EU member states voted to impose tariffs on over $100 billion of US goods from Aug. 7. The Financial Times reported that this move that allows the bloc to impose the levies quickly at any point in the future should its trade relationship with the US take a turn for the worse. From the report: Read more here (subscription required). As my colleague detailed below, EU member states voted to impose tariffs on over $100 billion of US goods from Aug. 7. The Financial Times reported that this move that allows the bloc to impose the levies quickly at any point in the future should its trade relationship with the US take a turn for the worse. From the report: Read more here (subscription required). Europe approves $100B-plus tariff backup plan A report in the Wall Street Journal on Thursday said that the European Union has now approved its retaliatory tariff package on US goods that could start in August if no trade agreement is reached. The EU announced on Wednesday that it will hit the US with 30% tariffs on over $100 billion worth of goods in the event that no deal is made and if President Trump decides to follow through with his threat to impose that rate on most of the bloc's exports after Aug. 1. The US exports, which would include goods such as Boeing (BA) aircraft, US-made cars and bourbon whiskey would all face heavy tariffs that match Trump's 30% threat. The approval of the package comes despite the growing optimism that the US and EU will reach a deal that would put baseline tariffs on the bloc at 15%, matching the level the US applied to Japan. The EU is keen to reach a deal with the US but as a cautionary measure has approved 30% tariffs if a deal is not made. A report in the Wall Street Journal on Thursday said that the European Union has now approved its retaliatory tariff package on US goods that could start in August if no trade agreement is reached. The EU announced on Wednesday that it will hit the US with 30% tariffs on over $100 billion worth of goods in the event that no deal is made and if President Trump decides to follow through with his threat to impose that rate on most of the bloc's exports after Aug. 1. The US exports, which would include goods such as Boeing (BA) aircraft, US-made cars and bourbon whiskey would all face heavy tariffs that match Trump's 30% threat. The approval of the package comes despite the growing optimism that the US and EU will reach a deal that would put baseline tariffs on the bloc at 15%, matching the level the US applied to Japan. The EU is keen to reach a deal with the US but as a cautionary measure has approved 30% tariffs if a deal is not made. 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