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The Star
18-07-2025
- Business
- The Star
Indonesia says US trade deal reached after ‘extraordinary struggle'
Indonesian President Prabowo Subianto. — Reuters JAKARTA: Indonesia says it has reached a trade deal with the United States after an 'extraordinary struggle' in negotiations which resulted in a reduction of proposed US tariff rates on the South-East Asian country's exports to 19% from 32%. US President Donald Trump said on Tuesday a deal had been struck after he spoke to Indonesian President Prabowo Subianto. The deal is among only a handful reached so far by the Trump administration ahead of an Aug 1 deadline for negotiations. 'This is an extraordinary struggle by our negotiating team led by the Coordinating Minister for Economic Affairs,' Hasan Nasbi, the Indonesian president's spokesperson, told reporters on Wednesday. Hasan said Prabowo had also negotiated directly with Trump over the phone, without giving further details. He said Prabowo would hold a press conference later on Wednesday after returning from a foreign trip. Indonesia – the world's fourth-largest country and a member of G20 – ran a goods trade surplus of US$17.9bil with the United States last year, according to US data. Hasan called the deal a 'meeting point' between the two governments, and said Indonesia's tariff rate was much lower than other countries in South-East Asia. Indonesia, South-East Asia's largest economy, has committed to purchasing 50 Boeing jets, US$15bil in US energy, and US$4.5bil in US agricultural products as part of its trade agreement with the United States, Trump said. Trump outlined an Indonesia deal similar to a preliminary pact struck recently with Vietnam, with a flat tariff on exports to the United States roughly double the current 10% and no levies on US exports to Indonesia. It also included a penalty rate for so-called transshipments of goods from China via Indonesia. Indonesia's stock index rose as much as 0.7% on Wednesday after the deal, which some analysts said would provide a positive catalyst for economic activities. 'Well, 19% is better than 32%,' Matt Simpson, a senior analyst at City Index in Brisbane, said. 'Indonesian non-oil exports such as footwear and textiles will take a hit, but energy and agriculture are set to gain. 'Officials are of course pleased because they're in Trump's good books,' he added. Natixis warned the Indonesian economy would still be affected by Trump's tariffs on China – Indonesia's biggest trade partner. Myrdal Gunarto, an economist with Maybank Indonesia, described the deal as relatively good, as Jakarta is getting a tariff below those imposed on other South-East Asian neighbours. — The Jakarta Post/ANN
New Straits Times
16-07-2025
- Business
- New Straits Times
Indonesia says US trade deal reached after 'extraordinary struggle'
JAKARTA: Indonesia said on Wednesday it had reached a trade deal with the United States after an "extraordinary struggle" in negotiations which resulted in a reduction of proposed US tariff rates on the Southeast Asian country's exports to 19 per cent from 32 per cent. US President Donald Trump said on Tuesday a deal had been struck after he spoke to Indonesian President Prabowo Subianto. The deal is among only a handful reached so far by the Trump administration ahead of an August 1 deadline for negotiations. "This is an extraordinary struggle by our negotiating team led by the Coordinating Minister for Economic Affairs," Hasan Nasbi, the Indonesian president's spokesperson, told reporters on Wednesday. Nasbi said Prabowo had also negotiated directly with Trump over the phone, without giving further details. He said Prabowo would hold a press conference later on Wednesday after returning from a foreign trip. Indonesia - the world's fourth-largest country and a member of G20 - ran a goods trade surplus of US$17.9 billion with the United States in 2024, according to the US Trade Representative. Nasbi called the deal a "meeting point" between the two governments, and said Indonesia's tariff rate was much lower than other countries in Southeast Asia. Indonesia, Southeast Asia's largest economy, has committed to purchasing 50 Boeing jets, US$15 billion in US energy, and US$4.5 billion in US agricultural products as part of its trade agreement with the United States, Trump said. Trump outlined an Indonesia deal similar to a preliminary pact struck recently with Vietnam, with a flat tariff on exports to the US roughly double the current 10 per cent and no levies on US exports to Indonesia. It also included a penalty rate for so-called transshipments of goods from China via Indonesia. Indonesia's stock index rose as much as 0.7 per cent on Wednesday after the deal, which some analysts said would provide a positive catalyst for economic activities. "Well, 19 per cent is better than 32 per cent," Matt Simpson, a senior market analyst at City Index in Brisbane, said. "Indonesian non-oil exports such as footwear and textiles will take a hit, but energy and agriculture are set to gain. Officials are of course pleased because they're in Trump's good books," he added. Natixis warned the Indonesian economy would still be affected by Trump's tariffs on China - Indonesia's biggest trade partner. Myrdal Gunarto, an economist with Maybank Indonesia, described the deal as relatively good, as Jakarta is getting a tariff below those imposed on other Southeast Asian neighbours. "(The deal) opens more space for domestic lower monetary policy rate," he said, predicting it would also trigger capital inflows. A bare majority of analysts in a Reuters poll expected Indonesia's central bank to cut interest rates later on Wednesday to bolster economic growth. (Reporting by Stefanno Sulaiman, Ananda Teresia and Gayatri Suroyo; Writing by Gibran Peshimam; Editing by John Mair and Kim Coghill)
Wall Street Journal
16-07-2025
- Business
- Wall Street Journal
Oil Rises Amid Seasonal Demand Hopes
0004 GMT — Oil rises in the early Asian session amid seasonal demand hopes. 'We're entering the U.S. peak driving season, where gasoline consumption tends to spike,' says Fawad Razaqzada, market analyst at City Index and in an email. Hence, the crude-oil outlook isn't entirely bearish, the analyst says. Also, 'Washington has pushed through a hefty budget and tax package, which should give near-term economic growth a nudge,' the analyst adds. Front-month WTI crude oil futures are up 0.5% at $66.83/bbl; front-month Brent crude oil futures are 0.3% higher at $68.93/bbl. (
Fast Company
11-07-2025
- Business
- Fast Company
Stocks drop after Trump sets tariffs on Canada
Global stocks fell on Friday after U.S. President Donald Trump intensified his tariff war against Canada, leaving Europe squarely in the firing line, sparking a modest investor push into safe havens such as gold. The Canadian dollar fell after Trump issued a letter late on Thursday that said a 35% tariff rate on all imports from Canada would apply from August 1. The European Union was set to receive a letter by Friday. The U.S. president, whose global wave of tariffs has upended businesses and policymaking, floated a blanket 15% or 20% tariff rate on other countries, a step up from the current 10% baseline rate. This week, he surprised Brazil, which has a trade surplus with the United States, with duties of 50%, and hit copper, pharmaceuticals and semiconductor chips. Aside from pockets of volatility in target currencies, stocks or commodities, markets have offered little in the way of reaction to the onslaught, leaving the VIX volatility index at its lowest since late February. In Europe, the STOXX 600, which has risen 2% this week, fell 0.8%. Futures on the S&P 500 and the Nasdaq fell 0.4-0.5%, pointing to a retreat from this week's record highs at the open later. 'The market is becoming a bit numb to these (tariff) announcements, and perhaps it's not until we see hard data showing an impact that we (will) start to see the market reacting,' City Index strategist Fiona Cincotta said. 'Obviously, we're getting more information through that does bring with it an element of clarity. Because there is so much uncertainty, there is still this idea that Trump could be open to negotiation, nothing feels 'final' still,' she said. The dollar rose as much as 0.5% earlier against the Canadian dollar before retreating to C$1.3697 , up 0.2% on the day. The euro, which has lost nearly 1% in value since the start of July, was down 0.1% at $1.1694. Earlier in the week, Trump pushed back his tariff deadline of July 9 to August 1 for many trading partners to allow more time for negotiations, but broadened his trade war, setting new rates for a number of countries, including allies Japan and South Korea, along with a 50% tariff on copper. Joseph Capurso, head of international economics at the Commonwealth Bank of Australia, said the tariff rate of 35% on Canada was not as bad as feared because most of the imports are still subject to exemptions under the United States-Mexico-Canada Agreement (USMCA). 'Now the tariff rate on imports from the EU … That's what we don't know as yet,' Capurso said. 'If you get something similar to (the U.S.-China trade war in April), that's going to be very destabilising.' Wall Street indexes posted record closing highs on Thursday as AI chip maker Nvidia made history, bagging a market valuation above $4 trillion. Gold rose for a third day in a row, up 0.8% to $3,348 an ounce, bringing gains for July so far to 1.2%. Treasuries got less of a safe-haven boost, as investor concern about the fragility of long-term U.S. government finances prompted a selloff that pushed yields up. Benchmark 10-year yields rose 3.7 basis points to 4.384%, adding to Thursday's rise on the back of data that showed jobless claims unexpectedly fell last week. The yen, which also typically behaves like a safe haven, has been steadily weakening as the prospects dim for a U.S.-Japan trade deal. The dollar was up 0.45% on Friday at 146.93 yen, set for a weekly gain of 1.6%, the biggest this year. Bitcoin rose as much as 4.6% to a new record of $118,832. Investors will be watching second-quarter corporate earnings next week to gauge the impact of Trump's tariffs from April 2. JPMorgan Chase is due to release results on Tuesday, essentially kicking off the reporting period. Oil prices rose nearly 1%, partially reversing the previous day's losses, to leave Brent crude at $69.3 a barrel.
Time of India
11-07-2025
- Business
- Time of India
US stock futures hit lower circuit as Trump hits Canada with tariffs
U.S. stock index futures fell on Friday, as President Donald Trump amplified his tariff offensive against Canada, adding another layer of uncertainty around Washington's trade policies. Trump said on Thursday the U.S. would impose a 35% levy on imports from Canada, starting next month. He also floated a blanket 15% or 20% tariff rate on other countries, a step up from the current 10% baseline rate. The 35% tariff is an increase from the current 25% rate that Trump had imposed on Canada in March. According to Trump, the new rate will go into effect on August 1 and could go up further if Canada retaliates. He also said the European Union, which has been scrambling to strike a deal with Washington, would receive a formal letter later in the day. At 06:58 a.m. ET, Dow E-minis were down 336 points, or 0.75%, U.S. S&P 500 E-minis were down 46 points, or 0.73%, and Nasdaq 100 E-minis were down 149.75 points, or 0.65%. Live Events Markets have remained largely subdued this week, with the only highlight being Nvidia becoming the first company to breach the $4 trillion valuation milestone. Shares of the chip giant eased 0.5% in premarket trading. The S&P 500 and the tech-heavy Nasdaq are on track to end the week largely flat, while the Dow looks set to snap its three-week winning streak - the longest since January. This week, President Trump widened his tariff offensive, targeting a number of countries, including allies Japan and South Korea, and introducing a new 50% tariff on copper. Analysts are noting a growing sense of resilience among investors, who seem to be getting used to Trump's tariff threats. Market moves in response to the new tariff announcements are far less choppier than the turbulence following early April's "Liberation Day" announcements. "It feels that the market has been rather sanguine...(about) the potential impact and hasn't really been pricing in the risks that are now coming to the surface as we get more clarity over what the trade tariffs will be," said Fiona Cincotta, senior market analyst at City Index. Investors are also gearing up for the upcoming earnings season, which could offer better clarity on how trade uncertainties have affected corporations. Wall Street's big banks are scheduled to report quarterly results next week, with J.P. Morgan kicking off the earnings season on Tuesday. The coming week is also packed with economic data releases, including those on consumer and producer price inflation and retail sales. Investors are also betting on future interest rate cuts by the Federal Reserve, with odds for a September cut standing at 60.4%, according to CME FedWatch. A stronger-than-expected jobs data last week has ruled out the likelihood of a July reduction. Cryptocurrency stocks ticked up as bitcoin rose to a record high. Coinbase Global rose 1.8%, Bitfarms climbed 6.4%, Strategy and Riot Platforms advanced over 3.2%. Denim maker Levi Strauss & Co jumped 6.7% after the company raised its annual revenue and profit forecasts and beat quarterly estimates on Thursday.
