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The Advertiser
a day ago
- Business
- The Advertiser
Rio Tinto profits slip as prices weigh on performance
Lumbering iron ore prices and multiple cyclones have weighed on Rio Tinto's profits, but the miner's increasing diversification across other commodities has helped balance the result. Rio posted a $US4.5 billion ($A6.9 billion) net profit in the six months to June 30, a 22 per cent slip on the same period in 2024, after its Pilbara operations were affected by four cyclones. Iron ore is the group's biggest earner, and ore prices have grinded roughly 15 per cent lower from $US107 a tonne to as low as $US93 in 2025. Chief executive Jakob Stausholm, who will make way for incoming boss Simon Trott on August 25, said he had often seen higher prices at other times while at the company's helm. "But this set of results are the strongest, demonstrating real momentum in improving operational performance, real value from a more diversified portfolio, and excellence in unlocking growth projects," Mr Stausholm told investors at an results presentation in London. Positive earnings and cash flow results were buoyed by strong prices and production in aluminium and copper, which helped offset the weaker iron ore performance, chief financial officer Peter Cunningham said. "It's also important to note that going forward, over the next 10 years, we expect that 40 per cent of (iron ore) production from the majors needs to be replaced," he told investors. "And while China's steel consumption has plateaued, there is demand growth elsewhere in global steel markets often supplied by Chinese exports." The company will pay an interim ordinary dividend of $US1.48 ($A2.27) a share, worth $US2.4 billion, delivering its promised 50 per cent payout ratio but a step down from last year's $US1.77 per share. Rio Tinto's production guidance remained largely unchanged, but Pilbara shipments were tipped to fall to the lower end of the expected range because of cyclones in the first quarter. Bauxite and copper production was forecast to come in at the higher end of expectations thanks to better-than-expected mine performances and a successful ramp up at an underground mine in Mongolia. Rio's takeover of Arcadium Lithium came to $US7.6 billion. Along with property and equipment purchases, $US3.8 billion in dividends and other outgoings, this took its net debt to $US14.6 billion, swelling from $US5.5 billion at the end of 2024. Mr Cunningham was confident about Rio's books. "We feel that the balance sheet is in really good shape, and we have flexibility going forward with these sorts of levels," he told investors. "This is a cyclical industry, cash flow goes up and down what we've got to do is use the balance sheet to really make sure we can deliver against the strategy, and also deliver shareholder returns. RBC Capital Markets analysts Kaan Peker and Ben Davis said sentiment on the result would be positive. "Rio Tinto produced a good set of operational results across key divisions that was a six per cent beat at the product group level," the analysts wrote. "But this was dragged down by other items including restructuring costs at Arcadium." Looking further afield, the miner said the global economy appeared resilient, with the energy transition likely to support commodity demand growth. It was likewise optimistic about China's growth prospects, supported by ongoing domestic stimulus and Beijing's commitment to infrastructure investment to offset its ailing property sector. The US economy was holding up despite tariff impacts still feeding through to inflation and consumer sentiment but high mortgage rates, stubborn construction costs and labour shortages weighing on its housing sector. Lumbering iron ore prices and multiple cyclones have weighed on Rio Tinto's profits, but the miner's increasing diversification across other commodities has helped balance the result. Rio posted a $US4.5 billion ($A6.9 billion) net profit in the six months to June 30, a 22 per cent slip on the same period in 2024, after its Pilbara operations were affected by four cyclones. Iron ore is the group's biggest earner, and ore prices have grinded roughly 15 per cent lower from $US107 a tonne to as low as $US93 in 2025. Chief executive Jakob Stausholm, who will make way for incoming boss Simon Trott on August 25, said he had often seen higher prices at other times while at the company's helm. "But this set of results are the strongest, demonstrating real momentum in improving operational performance, real value from a more diversified portfolio, and excellence in unlocking growth projects," Mr Stausholm told investors at an results presentation in London. Positive earnings and cash flow results were buoyed by strong prices and production in aluminium and copper, which helped offset the weaker iron ore performance, chief financial officer Peter Cunningham said. "It's also important to note that going forward, over the next 10 years, we expect that 40 per cent of (iron ore) production from the majors needs to be replaced," he told investors. "And while China's steel consumption has plateaued, there is demand growth elsewhere in global steel markets often supplied by Chinese exports." The company will pay an interim ordinary dividend of $US1.48 ($A2.27) a share, worth $US2.4 billion, delivering its promised 50 per cent payout ratio but a step down from last year's $US1.77 per share. Rio Tinto's production guidance remained largely unchanged, but Pilbara shipments were tipped to fall to the lower end of the expected range because of cyclones in the first quarter. Bauxite and copper production was forecast to come in at the higher end of expectations thanks to better-than-expected mine performances and a successful ramp up at an underground mine in Mongolia. Rio's takeover of Arcadium Lithium came to $US7.6 billion. Along with property and equipment purchases, $US3.8 billion in dividends and other outgoings, this took its net debt to $US14.6 billion, swelling from $US5.5 billion at the end of 2024. Mr Cunningham was confident about Rio's books. "We feel that the balance sheet is in really good shape, and we have flexibility going forward with these sorts of levels," he told investors. "This is a cyclical industry, cash flow goes up and down what we've got to do is use the balance sheet to really make sure we can deliver against the strategy, and also deliver shareholder returns. RBC Capital Markets analysts Kaan Peker and Ben Davis said sentiment on the result would be positive. "Rio Tinto produced a good set of operational results across key divisions that was a six per cent beat at the product group level," the analysts wrote. "But this was dragged down by other items including restructuring costs at Arcadium." Looking further afield, the miner said the global economy appeared resilient, with the energy transition likely to support commodity demand growth. It was likewise optimistic about China's growth prospects, supported by ongoing domestic stimulus and Beijing's commitment to infrastructure investment to offset its ailing property sector. The US economy was holding up despite tariff impacts still feeding through to inflation and consumer sentiment but high mortgage rates, stubborn construction costs and labour shortages weighing on its housing sector. Lumbering iron ore prices and multiple cyclones have weighed on Rio Tinto's profits, but the miner's increasing diversification across other commodities has helped balance the result. Rio posted a $US4.5 billion ($A6.9 billion) net profit in the six months to June 30, a 22 per cent slip on the same period in 2024, after its Pilbara operations were affected by four cyclones. Iron ore is the group's biggest earner, and ore prices have grinded roughly 15 per cent lower from $US107 a tonne to as low as $US93 in 2025. Chief executive Jakob Stausholm, who will make way for incoming boss Simon Trott on August 25, said he had often seen higher prices at other times while at the company's helm. "But this set of results are the strongest, demonstrating real momentum in improving operational performance, real value from a more diversified portfolio, and excellence in unlocking growth projects," Mr Stausholm told investors at an results presentation in London. Positive earnings and cash flow results were buoyed by strong prices and production in aluminium and copper, which helped offset the weaker iron ore performance, chief financial officer Peter Cunningham said. "It's also important to note that going forward, over the next 10 years, we expect that 40 per cent of (iron ore) production from the majors needs to be replaced," he told investors. "And while China's steel consumption has plateaued, there is demand growth elsewhere in global steel markets often supplied by Chinese exports." The company will pay an interim ordinary dividend of $US1.48 ($A2.27) a share, worth $US2.4 billion, delivering its promised 50 per cent payout ratio but a step down from last year's $US1.77 per share. Rio Tinto's production guidance remained largely unchanged, but Pilbara shipments were tipped to fall to the lower end of the expected range because of cyclones in the first quarter. Bauxite and copper production was forecast to come in at the higher end of expectations thanks to better-than-expected mine performances and a successful ramp up at an underground mine in Mongolia. Rio's takeover of Arcadium Lithium came to $US7.6 billion. Along with property and equipment purchases, $US3.8 billion in dividends and other outgoings, this took its net debt to $US14.6 billion, swelling from $US5.5 billion at the end of 2024. Mr Cunningham was confident about Rio's books. "We feel that the balance sheet is in really good shape, and we have flexibility going forward with these sorts of levels," he told investors. "This is a cyclical industry, cash flow goes up and down what we've got to do is use the balance sheet to really make sure we can deliver against the strategy, and also deliver shareholder returns. RBC Capital Markets analysts Kaan Peker and Ben Davis said sentiment on the result would be positive. "Rio Tinto produced a good set of operational results across key divisions that was a six per cent beat at the product group level," the analysts wrote. "But this was dragged down by other items including restructuring costs at Arcadium." Looking further afield, the miner said the global economy appeared resilient, with the energy transition likely to support commodity demand growth. It was likewise optimistic about China's growth prospects, supported by ongoing domestic stimulus and Beijing's commitment to infrastructure investment to offset its ailing property sector. The US economy was holding up despite tariff impacts still feeding through to inflation and consumer sentiment but high mortgage rates, stubborn construction costs and labour shortages weighing on its housing sector. Lumbering iron ore prices and multiple cyclones have weighed on Rio Tinto's profits, but the miner's increasing diversification across other commodities has helped balance the result. Rio posted a $US4.5 billion ($A6.9 billion) net profit in the six months to June 30, a 22 per cent slip on the same period in 2024, after its Pilbara operations were affected by four cyclones. Iron ore is the group's biggest earner, and ore prices have grinded roughly 15 per cent lower from $US107 a tonne to as low as $US93 in 2025. Chief executive Jakob Stausholm, who will make way for incoming boss Simon Trott on August 25, said he had often seen higher prices at other times while at the company's helm. "But this set of results are the strongest, demonstrating real momentum in improving operational performance, real value from a more diversified portfolio, and excellence in unlocking growth projects," Mr Stausholm told investors at an results presentation in London. Positive earnings and cash flow results were buoyed by strong prices and production in aluminium and copper, which helped offset the weaker iron ore performance, chief financial officer Peter Cunningham said. "It's also important to note that going forward, over the next 10 years, we expect that 40 per cent of (iron ore) production from the majors needs to be replaced," he told investors. "And while China's steel consumption has plateaued, there is demand growth elsewhere in global steel markets often supplied by Chinese exports." The company will pay an interim ordinary dividend of $US1.48 ($A2.27) a share, worth $US2.4 billion, delivering its promised 50 per cent payout ratio but a step down from last year's $US1.77 per share. Rio Tinto's production guidance remained largely unchanged, but Pilbara shipments were tipped to fall to the lower end of the expected range because of cyclones in the first quarter. Bauxite and copper production was forecast to come in at the higher end of expectations thanks to better-than-expected mine performances and a successful ramp up at an underground mine in Mongolia. Rio's takeover of Arcadium Lithium came to $US7.6 billion. Along with property and equipment purchases, $US3.8 billion in dividends and other outgoings, this took its net debt to $US14.6 billion, swelling from $US5.5 billion at the end of 2024. Mr Cunningham was confident about Rio's books. "We feel that the balance sheet is in really good shape, and we have flexibility going forward with these sorts of levels," he told investors. "This is a cyclical industry, cash flow goes up and down what we've got to do is use the balance sheet to really make sure we can deliver against the strategy, and also deliver shareholder returns. RBC Capital Markets analysts Kaan Peker and Ben Davis said sentiment on the result would be positive. "Rio Tinto produced a good set of operational results across key divisions that was a six per cent beat at the product group level," the analysts wrote. "But this was dragged down by other items including restructuring costs at Arcadium." Looking further afield, the miner said the global economy appeared resilient, with the energy transition likely to support commodity demand growth. It was likewise optimistic about China's growth prospects, supported by ongoing domestic stimulus and Beijing's commitment to infrastructure investment to offset its ailing property sector. The US economy was holding up despite tariff impacts still feeding through to inflation and consumer sentiment but high mortgage rates, stubborn construction costs and labour shortages weighing on its housing sector.
The Advertiser
16-07-2025
- Business
- The Advertiser
Trump touts deal with Indonesia, flags pharma tariffs
US President Donald Trump says the United States will impose a 19 per cent tariff on goods from Indonesia under a new agreement with the Southeast Asian country. He said more deals were in the works as he continued to press for what he views as better terms with trading partners and a path to reducing a massive US trade deficit. The pact with the relatively minor US trading partner is among the handful struck so far by Trump's administration ahead of an August 1 deadline for tariffs on most US imports to rise again, and it came as the top US trading partner - the European Union - readied retaliatory measures should talks between US and its top trading partner fail. As that deadline approaches, talks were underway with other trading partners eager to avoid yet more levies being imposed on their exports to the US beyond a baseline 10 per cent on most goods that has been in place since April. It is a policy regime - rolled out often chaotically by Trump - that has upended decades of trends toward lower trade barriers, often roiling global financial markets and economic activity along the way. Based on Trump tariff announcements through July 13, Yale Budget Lab estimates the US effective average tariff rates will rise to 20.6 per cent from between two per cent and three per cent before Trump's return to the White House in January. Trump outlined an Indonesia deal that had rough contours resembling a pact struck recently with Vietnam, with a flat tariff on exports to the US roughly double the current 10 per cent and no levies placed on US exports going there. It also included a penalty rate for so-called transhipments of goods from China via Indonesia, and a commitment to buy some US goods. "They are going to pay 19 per cent and we are going to pay nothing ... we will have full access into Indonesia, and we have a couple of those deals that are going to be announced," Trump said outside the Oval Office. In addition, Trump said later on his Truth Social platform that Indonesia had agreed to buy $US15 billion ($A23 billion) of US energy products, $US4.5 billion of farm products and 50 Boeing jets although no time frame for the purchases was specified. Indonesia's total trade with the US - totalling just under $US40 billion in 2024 - does not rank in the top 15 but it has been growing. US exports to Indonesia rose 3.7 per cent last year while imports from there were up 4.8 per cent, leaving the US with a goods trade deficit of nearly $US18 billion. Susiwijono Moegiarso, a senior official with Indonesia's Coordinating Ministry for Economic Affairs, told Reuters in a text message: "We are preparing a joint statement between US and Indonesia that will explain the size of reciprocal tariff for Indonesia including the tariff deal, non-tariff and commercial arrangements. We will inform (the public) soon." Trump had threatened the country with a 32 per cent tariff rate effective August 1 in a letter sent to its president last week. He sent similar letters to about two dozen trading partners this month, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20 per cent up to 50 per cent, as well as a 50 per cent tariff on copper. The August 1 deadline gives the targeted countries time to negotiate agreements that could lower the threatened tariffs. The US president also said he will "probably" announce tariffs on pharmaceutical drugs. Trump told reporters such an announcement could come at the "end of the month." Trump said he would start out at a lower tariff rate and give companies a year to build domestic factories before they face higher import tax rates. "... there are two ways you do it. You make money, or you have them move here so they don't have to pay the tariff. Those are the two ways. "The pharmaceutical companies are moving back to America, where they should be." Earlier this month the US president laid out plans to impose 200 per cent tariffs on drug imports, threatening Australia's third-most significant export. with AP US President Donald Trump says the United States will impose a 19 per cent tariff on goods from Indonesia under a new agreement with the Southeast Asian country. He said more deals were in the works as he continued to press for what he views as better terms with trading partners and a path to reducing a massive US trade deficit. The pact with the relatively minor US trading partner is among the handful struck so far by Trump's administration ahead of an August 1 deadline for tariffs on most US imports to rise again, and it came as the top US trading partner - the European Union - readied retaliatory measures should talks between US and its top trading partner fail. As that deadline approaches, talks were underway with other trading partners eager to avoid yet more levies being imposed on their exports to the US beyond a baseline 10 per cent on most goods that has been in place since April. It is a policy regime - rolled out often chaotically by Trump - that has upended decades of trends toward lower trade barriers, often roiling global financial markets and economic activity along the way. Based on Trump tariff announcements through July 13, Yale Budget Lab estimates the US effective average tariff rates will rise to 20.6 per cent from between two per cent and three per cent before Trump's return to the White House in January. Trump outlined an Indonesia deal that had rough contours resembling a pact struck recently with Vietnam, with a flat tariff on exports to the US roughly double the current 10 per cent and no levies placed on US exports going there. It also included a penalty rate for so-called transhipments of goods from China via Indonesia, and a commitment to buy some US goods. "They are going to pay 19 per cent and we are going to pay nothing ... we will have full access into Indonesia, and we have a couple of those deals that are going to be announced," Trump said outside the Oval Office. In addition, Trump said later on his Truth Social platform that Indonesia had agreed to buy $US15 billion ($A23 billion) of US energy products, $US4.5 billion of farm products and 50 Boeing jets although no time frame for the purchases was specified. Indonesia's total trade with the US - totalling just under $US40 billion in 2024 - does not rank in the top 15 but it has been growing. US exports to Indonesia rose 3.7 per cent last year while imports from there were up 4.8 per cent, leaving the US with a goods trade deficit of nearly $US18 billion. Susiwijono Moegiarso, a senior official with Indonesia's Coordinating Ministry for Economic Affairs, told Reuters in a text message: "We are preparing a joint statement between US and Indonesia that will explain the size of reciprocal tariff for Indonesia including the tariff deal, non-tariff and commercial arrangements. We will inform (the public) soon." Trump had threatened the country with a 32 per cent tariff rate effective August 1 in a letter sent to its president last week. He sent similar letters to about two dozen trading partners this month, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20 per cent up to 50 per cent, as well as a 50 per cent tariff on copper. The August 1 deadline gives the targeted countries time to negotiate agreements that could lower the threatened tariffs. The US president also said he will "probably" announce tariffs on pharmaceutical drugs. Trump told reporters such an announcement could come at the "end of the month." Trump said he would start out at a lower tariff rate and give companies a year to build domestic factories before they face higher import tax rates. "... there are two ways you do it. You make money, or you have them move here so they don't have to pay the tariff. Those are the two ways. "The pharmaceutical companies are moving back to America, where they should be." Earlier this month the US president laid out plans to impose 200 per cent tariffs on drug imports, threatening Australia's third-most significant export. with AP US President Donald Trump says the United States will impose a 19 per cent tariff on goods from Indonesia under a new agreement with the Southeast Asian country. He said more deals were in the works as he continued to press for what he views as better terms with trading partners and a path to reducing a massive US trade deficit. The pact with the relatively minor US trading partner is among the handful struck so far by Trump's administration ahead of an August 1 deadline for tariffs on most US imports to rise again, and it came as the top US trading partner - the European Union - readied retaliatory measures should talks between US and its top trading partner fail. As that deadline approaches, talks were underway with other trading partners eager to avoid yet more levies being imposed on their exports to the US beyond a baseline 10 per cent on most goods that has been in place since April. It is a policy regime - rolled out often chaotically by Trump - that has upended decades of trends toward lower trade barriers, often roiling global financial markets and economic activity along the way. Based on Trump tariff announcements through July 13, Yale Budget Lab estimates the US effective average tariff rates will rise to 20.6 per cent from between two per cent and three per cent before Trump's return to the White House in January. Trump outlined an Indonesia deal that had rough contours resembling a pact struck recently with Vietnam, with a flat tariff on exports to the US roughly double the current 10 per cent and no levies placed on US exports going there. It also included a penalty rate for so-called transhipments of goods from China via Indonesia, and a commitment to buy some US goods. "They are going to pay 19 per cent and we are going to pay nothing ... we will have full access into Indonesia, and we have a couple of those deals that are going to be announced," Trump said outside the Oval Office. In addition, Trump said later on his Truth Social platform that Indonesia had agreed to buy $US15 billion ($A23 billion) of US energy products, $US4.5 billion of farm products and 50 Boeing jets although no time frame for the purchases was specified. Indonesia's total trade with the US - totalling just under $US40 billion in 2024 - does not rank in the top 15 but it has been growing. US exports to Indonesia rose 3.7 per cent last year while imports from there were up 4.8 per cent, leaving the US with a goods trade deficit of nearly $US18 billion. Susiwijono Moegiarso, a senior official with Indonesia's Coordinating Ministry for Economic Affairs, told Reuters in a text message: "We are preparing a joint statement between US and Indonesia that will explain the size of reciprocal tariff for Indonesia including the tariff deal, non-tariff and commercial arrangements. We will inform (the public) soon." Trump had threatened the country with a 32 per cent tariff rate effective August 1 in a letter sent to its president last week. He sent similar letters to about two dozen trading partners this month, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20 per cent up to 50 per cent, as well as a 50 per cent tariff on copper. The August 1 deadline gives the targeted countries time to negotiate agreements that could lower the threatened tariffs. The US president also said he will "probably" announce tariffs on pharmaceutical drugs. Trump told reporters such an announcement could come at the "end of the month." Trump said he would start out at a lower tariff rate and give companies a year to build domestic factories before they face higher import tax rates. "... there are two ways you do it. You make money, or you have them move here so they don't have to pay the tariff. Those are the two ways. "The pharmaceutical companies are moving back to America, where they should be." Earlier this month the US president laid out plans to impose 200 per cent tariffs on drug imports, threatening Australia's third-most significant export. with AP US President Donald Trump says the United States will impose a 19 per cent tariff on goods from Indonesia under a new agreement with the Southeast Asian country. He said more deals were in the works as he continued to press for what he views as better terms with trading partners and a path to reducing a massive US trade deficit. The pact with the relatively minor US trading partner is among the handful struck so far by Trump's administration ahead of an August 1 deadline for tariffs on most US imports to rise again, and it came as the top US trading partner - the European Union - readied retaliatory measures should talks between US and its top trading partner fail. As that deadline approaches, talks were underway with other trading partners eager to avoid yet more levies being imposed on their exports to the US beyond a baseline 10 per cent on most goods that has been in place since April. It is a policy regime - rolled out often chaotically by Trump - that has upended decades of trends toward lower trade barriers, often roiling global financial markets and economic activity along the way. Based on Trump tariff announcements through July 13, Yale Budget Lab estimates the US effective average tariff rates will rise to 20.6 per cent from between two per cent and three per cent before Trump's return to the White House in January. Trump outlined an Indonesia deal that had rough contours resembling a pact struck recently with Vietnam, with a flat tariff on exports to the US roughly double the current 10 per cent and no levies placed on US exports going there. It also included a penalty rate for so-called transhipments of goods from China via Indonesia, and a commitment to buy some US goods. "They are going to pay 19 per cent and we are going to pay nothing ... we will have full access into Indonesia, and we have a couple of those deals that are going to be announced," Trump said outside the Oval Office. In addition, Trump said later on his Truth Social platform that Indonesia had agreed to buy $US15 billion ($A23 billion) of US energy products, $US4.5 billion of farm products and 50 Boeing jets although no time frame for the purchases was specified. Indonesia's total trade with the US - totalling just under $US40 billion in 2024 - does not rank in the top 15 but it has been growing. US exports to Indonesia rose 3.7 per cent last year while imports from there were up 4.8 per cent, leaving the US with a goods trade deficit of nearly $US18 billion. Susiwijono Moegiarso, a senior official with Indonesia's Coordinating Ministry for Economic Affairs, told Reuters in a text message: "We are preparing a joint statement between US and Indonesia that will explain the size of reciprocal tariff for Indonesia including the tariff deal, non-tariff and commercial arrangements. We will inform (the public) soon." Trump had threatened the country with a 32 per cent tariff rate effective August 1 in a letter sent to its president last week. He sent similar letters to about two dozen trading partners this month, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20 per cent up to 50 per cent, as well as a 50 per cent tariff on copper. The August 1 deadline gives the targeted countries time to negotiate agreements that could lower the threatened tariffs. The US president also said he will "probably" announce tariffs on pharmaceutical drugs. Trump told reporters such an announcement could come at the "end of the month." Trump said he would start out at a lower tariff rate and give companies a year to build domestic factories before they face higher import tax rates. "... there are two ways you do it. You make money, or you have them move here so they don't have to pay the tariff. Those are the two ways. "The pharmaceutical companies are moving back to America, where they should be." Earlier this month the US president laid out plans to impose 200 per cent tariffs on drug imports, threatening Australia's third-most significant export. with AP
The Age
16-07-2025
- Business
- The Age
Trump flags drug tariffs as soon as end of the month
Washington: US President Donald Trump said he was likely to impose tariffs on pharmaceuticals as soon as the end of the month and that levies on semiconductors could come soon as well, suggesting that those import taxes could hit alongside broad 'reciprocal' rates set for implementation on August 1. 'Probably at the end of the month, and we're going to start off with a low tariff and give the pharmaceutical companies a year or so to build, and then we're going to make it a very high tariff,' Trump told reporters on Tuesday (Wednesday AEST) as he returned to Washington after attending an artificial intelligence summit in Pittsburgh. Trump also said his timeline for implementing tariffs on semiconductors was 'similar' and that it was 'less complicated' to impose levies on chips, without providing additional detail. At a cabinet meeting earlier this month, Trump said he planned to impose a 50 per cent tariff on copper in the coming weeks, and that he expected pharmaceutical tariffs to grow as high as 200 per cent after giving companies a year to bring manufacturing back to the US. Trump has already announced investigations under Section 232 of the Trade Expansion Act of 1962 on drugs, arguing a flood of foreign imports was threatening national security. Pharmaceutical products are the third-biggest category in Australia's exports to the United States, after beef and gold. The category was worth $2.2 billion last year and includes plasma exports from biotech giant CSL, a company that also has large US operations. Loading The threat came as Trump in recent days has sent letters to a number of trading partners unilaterally dictating the rates for tariffs on many imports, while maintaining he would continue to carry out negotiations. Earlier on Tuesday, Trump announced an agreement with Indonesia reducing the 32 per cent rate announced in one of the letters to 19 per cent. Indonesia agreed to purchase $US15 billion ($23 billion) in US energy, $US4.5 billion worth of agricultural products and 50 Boeing jets as part of the agreement, the US said. Trump on Tuesday predicted that he could strike 'two or three' trade deals with countries before implementing his so-called reciprocal tariffs before they were implemented on August 1, saying that an agreement with India was among the most likely. Trump told reporters the US was engaged in substantive discussions with between five and six countries, but that he wasn't necessarily inclined to finalise agreements over simply dictating a tariff rate.
Sydney Morning Herald
16-07-2025
- Business
- Sydney Morning Herald
Trump flags drug tariffs as soon as end of the month
Washington: US President Donald Trump said he was likely to impose tariffs on pharmaceuticals as soon as the end of the month and that levies on semiconductors could come soon as well, suggesting that those import taxes could hit alongside broad 'reciprocal' rates set for implementation on August 1. 'Probably at the end of the month, and we're going to start off with a low tariff and give the pharmaceutical companies a year or so to build, and then we're going to make it a very high tariff,' Trump told reporters on Tuesday (Wednesday AEST) as he returned to Washington after attending an artificial intelligence summit in Pittsburgh. Trump also said his timeline for implementing tariffs on semiconductors was 'similar' and that it was 'less complicated' to impose levies on chips, without providing additional detail. At a cabinet meeting earlier this month, Trump said he planned to impose a 50 per cent tariff on copper in the coming weeks, and that he expected pharmaceutical tariffs to grow as high as 200 per cent after giving companies a year to bring manufacturing back to the US. Trump has already announced investigations under Section 232 of the Trade Expansion Act of 1962 on drugs, arguing a flood of foreign imports was threatening national security. Pharmaceutical products are the third-biggest category in Australia's exports to the United States, after beef and gold. The category was worth $2.2 billion last year and includes plasma exports from biotech giant CSL, a company that also has large US operations. Loading The threat came as Trump in recent days has sent letters to a number of trading partners unilaterally dictating the rates for tariffs on many imports, while maintaining he would continue to carry out negotiations. Earlier on Tuesday, Trump announced an agreement with Indonesia reducing the 32 per cent rate announced in one of the letters to 19 per cent. Indonesia agreed to purchase $US15 billion ($23 billion) in US energy, $US4.5 billion worth of agricultural products and 50 Boeing jets as part of the agreement, the US said. Trump on Tuesday predicted that he could strike 'two or three' trade deals with countries before implementing his so-called reciprocal tariffs before they were implemented on August 1, saying that an agreement with India was among the most likely. Trump told reporters the US was engaged in substantive discussions with between five and six countries, but that he wasn't necessarily inclined to finalise agreements over simply dictating a tariff rate.
The Advertiser
16-07-2025
- Business
- The Advertiser
US sets 19 per cent tariff on Indonesia goods in deal
US President Donald Trump says the United States will impose a 19 per cent tariff on goods from Indonesia under a new agreement with the Southeast Asian country. He said more deals were in the works as he continued to press for what he views as better terms with trading partners and a path to reducing a massive US trade deficit. The pact with the relatively minor US trading partner is among the handful struck so far by Trump's administration ahead of an August 1 deadline for tariffs on most US imports to rise again, and it came as the top US trading partner - the European Union - readied retaliatory measures should talks between US and its top trading partner fail. As that deadline approaches, talks were underway with other trading partners eager to avoid yet more levies being imposed on their exports to the US beyond a baseline 10 per cent on most goods that has been in place since April. It is a policy regime - rolled out often chaotically by Trump - that has upended decades of trends toward lower trade barriers, often roiling global financial markets and economic activity along the way. Based on Trump tariff announcements through July 13, Yale Budget Lab estimates the US effective average tariff rates will rise to 20.6 per cent from between 2 per cent and 3 per cent before Trump's return to the White House in January. Consumption shifts would bring the rate down to 19.7 per cent but it is still the highest since 1933. Trump outlined an Indonesia deal that had rough contours resembling a pact struck recently with Vietnam, with a flat tariff on exports to the US roughly double the current 10 per cent and no levies placed on US exports going there. It also included a penalty rate for so-called transhipments of goods from China via Indonesia, and a commitment to buy some US goods. "They are going to pay 19 per cent and we are going to pay nothing ... we will have full access into Indonesia, and we have a couple of those deals that are going to be announced," Trump said outside the Oval Office. In addition, Trump said later on his Truth Social platform that Indonesia had agreed to buy $US15 billion ($A23 billion) of US energy products, $US4.5 billion of farm products and 50 Boeing jets although no time frame for the purchases was specified. Indonesia's total trade with the US - totalling just under $US40 billion in 2024 - does not rank in the top 15 but it has been growing. US exports to Indonesia rose 3.7 per cent last year while imports from there were up 4.8 per cent, leaving the US with a goods trade deficit of nearly $US18 billion. The top US import categories from Indonesia, according to US Census Bureau data retrieved on the International Trade Centre's TradeMap tool, last year were palm oil, electronics equipment including data routers and switches, footwear, car tyres, natural rubber and frozen shrimp. Susiwijono Moegiarso, a senior official with Indonesia's Coordinating Ministry for Economic Affairs, told Reuters in a text message: "We are preparing a joint statement between US and Indonesia that will explain the size of reciprocal tariff for Indonesia including the tariff deal, non-tariff and commercial arrangements. We will inform (the public) soon." Trump had threatened the country with a 32 per cent tariff rate effective August 1 in a letter sent to its president last week. He sent similar letters to about two dozen trading partners this month, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20 per cent up to 50 per cent, as well as a 50 per cent tariff on copper. The August 1 deadline gives the targeted countries time to negotiate agreements that could lower the threatened tariffs. Some investors and economists have also noted Trump's pattern of backing off his tariff threats. So far, framework agreements have been reached with the United Kingdom and Vietnam, and an interim deal has been struck with China to forestall the steepest of Trump's tariffs while negotiations continue between the two countries. Trump said talks with India were moving in a similar direction. "India basically is working along that same line. We're going to have access to India. And you have to understand, we had no access into any of these countries. Our people couldn't go in. And now we're getting access because of what we're doing with the tariffs," he said. US President Donald Trump says the United States will impose a 19 per cent tariff on goods from Indonesia under a new agreement with the Southeast Asian country. He said more deals were in the works as he continued to press for what he views as better terms with trading partners and a path to reducing a massive US trade deficit. The pact with the relatively minor US trading partner is among the handful struck so far by Trump's administration ahead of an August 1 deadline for tariffs on most US imports to rise again, and it came as the top US trading partner - the European Union - readied retaliatory measures should talks between US and its top trading partner fail. As that deadline approaches, talks were underway with other trading partners eager to avoid yet more levies being imposed on their exports to the US beyond a baseline 10 per cent on most goods that has been in place since April. It is a policy regime - rolled out often chaotically by Trump - that has upended decades of trends toward lower trade barriers, often roiling global financial markets and economic activity along the way. Based on Trump tariff announcements through July 13, Yale Budget Lab estimates the US effective average tariff rates will rise to 20.6 per cent from between 2 per cent and 3 per cent before Trump's return to the White House in January. Consumption shifts would bring the rate down to 19.7 per cent but it is still the highest since 1933. Trump outlined an Indonesia deal that had rough contours resembling a pact struck recently with Vietnam, with a flat tariff on exports to the US roughly double the current 10 per cent and no levies placed on US exports going there. It also included a penalty rate for so-called transhipments of goods from China via Indonesia, and a commitment to buy some US goods. "They are going to pay 19 per cent and we are going to pay nothing ... we will have full access into Indonesia, and we have a couple of those deals that are going to be announced," Trump said outside the Oval Office. In addition, Trump said later on his Truth Social platform that Indonesia had agreed to buy $US15 billion ($A23 billion) of US energy products, $US4.5 billion of farm products and 50 Boeing jets although no time frame for the purchases was specified. Indonesia's total trade with the US - totalling just under $US40 billion in 2024 - does not rank in the top 15 but it has been growing. US exports to Indonesia rose 3.7 per cent last year while imports from there were up 4.8 per cent, leaving the US with a goods trade deficit of nearly $US18 billion. The top US import categories from Indonesia, according to US Census Bureau data retrieved on the International Trade Centre's TradeMap tool, last year were palm oil, electronics equipment including data routers and switches, footwear, car tyres, natural rubber and frozen shrimp. Susiwijono Moegiarso, a senior official with Indonesia's Coordinating Ministry for Economic Affairs, told Reuters in a text message: "We are preparing a joint statement between US and Indonesia that will explain the size of reciprocal tariff for Indonesia including the tariff deal, non-tariff and commercial arrangements. We will inform (the public) soon." Trump had threatened the country with a 32 per cent tariff rate effective August 1 in a letter sent to its president last week. He sent similar letters to about two dozen trading partners this month, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20 per cent up to 50 per cent, as well as a 50 per cent tariff on copper. The August 1 deadline gives the targeted countries time to negotiate agreements that could lower the threatened tariffs. Some investors and economists have also noted Trump's pattern of backing off his tariff threats. So far, framework agreements have been reached with the United Kingdom and Vietnam, and an interim deal has been struck with China to forestall the steepest of Trump's tariffs while negotiations continue between the two countries. Trump said talks with India were moving in a similar direction. "India basically is working along that same line. We're going to have access to India. And you have to understand, we had no access into any of these countries. Our people couldn't go in. And now we're getting access because of what we're doing with the tariffs," he said. US President Donald Trump says the United States will impose a 19 per cent tariff on goods from Indonesia under a new agreement with the Southeast Asian country. He said more deals were in the works as he continued to press for what he views as better terms with trading partners and a path to reducing a massive US trade deficit. The pact with the relatively minor US trading partner is among the handful struck so far by Trump's administration ahead of an August 1 deadline for tariffs on most US imports to rise again, and it came as the top US trading partner - the European Union - readied retaliatory measures should talks between US and its top trading partner fail. As that deadline approaches, talks were underway with other trading partners eager to avoid yet more levies being imposed on their exports to the US beyond a baseline 10 per cent on most goods that has been in place since April. It is a policy regime - rolled out often chaotically by Trump - that has upended decades of trends toward lower trade barriers, often roiling global financial markets and economic activity along the way. Based on Trump tariff announcements through July 13, Yale Budget Lab estimates the US effective average tariff rates will rise to 20.6 per cent from between 2 per cent and 3 per cent before Trump's return to the White House in January. Consumption shifts would bring the rate down to 19.7 per cent but it is still the highest since 1933. Trump outlined an Indonesia deal that had rough contours resembling a pact struck recently with Vietnam, with a flat tariff on exports to the US roughly double the current 10 per cent and no levies placed on US exports going there. It also included a penalty rate for so-called transhipments of goods from China via Indonesia, and a commitment to buy some US goods. "They are going to pay 19 per cent and we are going to pay nothing ... we will have full access into Indonesia, and we have a couple of those deals that are going to be announced," Trump said outside the Oval Office. In addition, Trump said later on his Truth Social platform that Indonesia had agreed to buy $US15 billion ($A23 billion) of US energy products, $US4.5 billion of farm products and 50 Boeing jets although no time frame for the purchases was specified. Indonesia's total trade with the US - totalling just under $US40 billion in 2024 - does not rank in the top 15 but it has been growing. US exports to Indonesia rose 3.7 per cent last year while imports from there were up 4.8 per cent, leaving the US with a goods trade deficit of nearly $US18 billion. The top US import categories from Indonesia, according to US Census Bureau data retrieved on the International Trade Centre's TradeMap tool, last year were palm oil, electronics equipment including data routers and switches, footwear, car tyres, natural rubber and frozen shrimp. Susiwijono Moegiarso, a senior official with Indonesia's Coordinating Ministry for Economic Affairs, told Reuters in a text message: "We are preparing a joint statement between US and Indonesia that will explain the size of reciprocal tariff for Indonesia including the tariff deal, non-tariff and commercial arrangements. We will inform (the public) soon." Trump had threatened the country with a 32 per cent tariff rate effective August 1 in a letter sent to its president last week. He sent similar letters to about two dozen trading partners this month, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20 per cent up to 50 per cent, as well as a 50 per cent tariff on copper. The August 1 deadline gives the targeted countries time to negotiate agreements that could lower the threatened tariffs. Some investors and economists have also noted Trump's pattern of backing off his tariff threats. So far, framework agreements have been reached with the United Kingdom and Vietnam, and an interim deal has been struck with China to forestall the steepest of Trump's tariffs while negotiations continue between the two countries. Trump said talks with India were moving in a similar direction. "India basically is working along that same line. We're going to have access to India. And you have to understand, we had no access into any of these countries. Our people couldn't go in. And now we're getting access because of what we're doing with the tariffs," he said. US President Donald Trump says the United States will impose a 19 per cent tariff on goods from Indonesia under a new agreement with the Southeast Asian country. He said more deals were in the works as he continued to press for what he views as better terms with trading partners and a path to reducing a massive US trade deficit. The pact with the relatively minor US trading partner is among the handful struck so far by Trump's administration ahead of an August 1 deadline for tariffs on most US imports to rise again, and it came as the top US trading partner - the European Union - readied retaliatory measures should talks between US and its top trading partner fail. As that deadline approaches, talks were underway with other trading partners eager to avoid yet more levies being imposed on their exports to the US beyond a baseline 10 per cent on most goods that has been in place since April. It is a policy regime - rolled out often chaotically by Trump - that has upended decades of trends toward lower trade barriers, often roiling global financial markets and economic activity along the way. Based on Trump tariff announcements through July 13, Yale Budget Lab estimates the US effective average tariff rates will rise to 20.6 per cent from between 2 per cent and 3 per cent before Trump's return to the White House in January. Consumption shifts would bring the rate down to 19.7 per cent but it is still the highest since 1933. Trump outlined an Indonesia deal that had rough contours resembling a pact struck recently with Vietnam, with a flat tariff on exports to the US roughly double the current 10 per cent and no levies placed on US exports going there. It also included a penalty rate for so-called transhipments of goods from China via Indonesia, and a commitment to buy some US goods. "They are going to pay 19 per cent and we are going to pay nothing ... we will have full access into Indonesia, and we have a couple of those deals that are going to be announced," Trump said outside the Oval Office. In addition, Trump said later on his Truth Social platform that Indonesia had agreed to buy $US15 billion ($A23 billion) of US energy products, $US4.5 billion of farm products and 50 Boeing jets although no time frame for the purchases was specified. Indonesia's total trade with the US - totalling just under $US40 billion in 2024 - does not rank in the top 15 but it has been growing. US exports to Indonesia rose 3.7 per cent last year while imports from there were up 4.8 per cent, leaving the US with a goods trade deficit of nearly $US18 billion. The top US import categories from Indonesia, according to US Census Bureau data retrieved on the International Trade Centre's TradeMap tool, last year were palm oil, electronics equipment including data routers and switches, footwear, car tyres, natural rubber and frozen shrimp. Susiwijono Moegiarso, a senior official with Indonesia's Coordinating Ministry for Economic Affairs, told Reuters in a text message: "We are preparing a joint statement between US and Indonesia that will explain the size of reciprocal tariff for Indonesia including the tariff deal, non-tariff and commercial arrangements. We will inform (the public) soon." Trump had threatened the country with a 32 per cent tariff rate effective August 1 in a letter sent to its president last week. He sent similar letters to about two dozen trading partners this month, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20 per cent up to 50 per cent, as well as a 50 per cent tariff on copper. The August 1 deadline gives the targeted countries time to negotiate agreements that could lower the threatened tariffs. Some investors and economists have also noted Trump's pattern of backing off his tariff threats. So far, framework agreements have been reached with the United Kingdom and Vietnam, and an interim deal has been struck with China to forestall the steepest of Trump's tariffs while negotiations continue between the two countries. Trump said talks with India were moving in a similar direction. "India basically is working along that same line. We're going to have access to India. And you have to understand, we had no access into any of these countries. Our people couldn't go in. And now we're getting access because of what we're doing with the tariffs," he said.
