Latest news with #USChinaDeal
Bloomberg
19 hours ago
- Business
- Bloomberg
Stocks Rise on Trade Hopes
Get a jump start on the US trading day with Matt Miller, Katie Greifeld and Sonali Basak on "Bloomberg Open Interest." Get a jump start on the US trading day with Matt Miller, Katie Greifeld and Sonali Basak on "Bloomberg Open Interest." Trade in focus as stock futures gain after US-China deal, meanwhile, the EU and US are confident they will reach a tariff deal by July. Amtrak President Roger Harris discusses working with the administration to bolster infrastructure. Legendary producer Jerry Bruckheimer shares the secrets behind his new blockbuster, 'F1: The Movie.' (Source: Bloomberg)
Al Jazeera
a day ago
- Business
- Al Jazeera
Has Trump struck a trade deal with China – and what about other countries?
The United States has reached an agreement with China on accelerating shipments of rare earth minerals to the US, amid efforts to end a trade war between the world's two biggest economies. US President Donald Trump said on Thursday that the US had signed a deal with China the previous day, without providing more details, adding that he expects to soon have a trade deal with India as well. Thursday's announcement follows talks in Geneva in May, which led the US and China to reduce mutual tariffs. In June, talks in London set a framework for negotiations. Thursday's announcement appeared to formalise that agreement. 'The [Trump] administration and China agreed to an additional understanding for a framework to implement the Geneva agreement,' a White House official said on Thursday. China also confirmed the framework for a deal, with its Ministry of Commerce stating that it will review and approve applications for items subject to export control rules. What do we know about the US-China deal? During US-China trade talks in Geneva, Beijing committed to removing non-tariff countermeasures imposed against the US following Donald Trump's 'Liberation Day' announcement on April 2. That was when Washington announced so-called 'reciprocal' import duties but later paused most of them, with the exception of its 145 percent tariff on China, for 90 days to allow for negotiations. This pause is due to come to an end on July 9. In retaliation, China imposed its own tariff of 125 percent on US goods, suspended exports on a wide range of critical minerals, upending supply chains crucial to US carmakers, semiconductor companies and military contractors. But on Thursday, US Commerce Secretary Howard Lutnick told Bloomberg TV that 'they're [China] going to deliver rare earths to us', and once they do that 'we'll take down our countermeasures'. Those US countermeasures include export curbs on materials such as ethane, which is used to make plastic, and chip software. A spokesperson for the Chinese Commerce Ministry said on Friday: 'In recent days, after approval, both sides have further confirmed details on the framework.' The spokesperson added: 'The Chinese side will review and approve eligible applications for export of controlled items in accordance with the law. The US side will correspondingly cancel a series of restrictive measures taken against China.' In early June, China granted temporary export licences to rare earth suppliers of the top three US automakers, according to two sources familiar with the matter, as supply chain disruptions began to surface from export curbs on those materials. This week's deal, which Lutnick said was signed on Wednesday, would amount to a wider agreement by codifying the terms laid out in Geneva, including a commitment from China to deliver rare earths to all US firms. Why are Chinese rare earth minerals so vital? China's export of rare earth elements is central to ongoing trade negotiations with the US. Beijing has a virtual monopoly of critical minerals, mining 70 percent of the world's rare earths and processing roughly 90 percent of their supply. Critical minerals, a group of 17 elements which are essential to numerous manufacturing processes, have become particularly important for the auto industry, which relies on rare earth magnets for steering systems, engines and catalytic converters. Car manufacturers have already complained about factories being brought to a near halt because of supply chain shortages of rare earths and the magnets they are used to make. A Ford executive said earlier this week that the company was living 'hand to mouth'. Rare earths are also vital for the transition to clean energy and are used in an array of products, including wind turbines, smartphones and televisions. They are also used to make fighter jets, missile systems and AI processors. What other trade deals does Trump claim to be close to agreeing? Lutnick told Bloomberg that Trump is also preparing to finalise a suite of trade deals in the coming weeks, ahead of his July 9 deadline for reinstating higher trade tariffs, which he paused on April 9. 'We're going to do top 10 deals, put them in the right category, and then these other countries will fit behind,' he said. Lutnick didn't specify which nations would be part of that first wave of trade pacts. Earlier on Thursday, however, Trump suggested the US was nearing an agreement with India. Indian trade officials, led by chief negotiator Rajesh Agarwal, are expected to hold meetings in Washington for two days this week, Bloomberg News has reported. In recent months, US officials have also held talks with countries, including Vietnam, South Korea, Japan and the EU. So far, only the United Kingdom has reached a trade agreement with the US, while China secured lower reciprocal tariffs in Geneva. Still, the pact with the UK left several questions unaddressed, including the discount rates applied to certain British metal exports. Which deals is the US still struggling to strike? The majority of America's major trade partners – from Canada to Vietnam and South Korea – are all expected to have fraught discussions with Washington before reciprocal tariffs expire in early July. Most countries are hoping to have tariffs whittled down by as much as possible, and, failing that, to extend the July deadline, but there is no certainty yet for any of them. Talks which have been particularly tricky include: A major question mark remains over an agreement with the European Union, which ran a $235.6bn trade surplus with the US in 2024. The hurdle facing EU leaders and the European Commission, which oversees trade issues for the 27-member bloc, is whether to accept an 'asymmetrical' trade deal with the US, under which terms could be more favourable to the US in order to get a deal done faster. Some member states are thought to be opposed to tit-for-tat retaliation, preferring a quick tariff deal over a perfect one. But others disagree. France has rejected the notion of any deal skewed in favour of the US and is instead pushing for a complete removal of tariffs. Japan is keen on settling all potential US tariffs in one fell swoop. But a sticking point in negotiations has been the 25 percent tariffs on cars and car parts imposed by Trump. Washington is focused on autos because that sector is responsible for most of its trade deficit with Japan. But Tokyo views its automotive industry as a key pillar in its economy as it generates about 10 percent of gross domestic product (GDP). On Thursday, Japan's chief trade negotiator, Ryosei Akazawa, reiterated Tokyo's position, telling reporters: 'We consider the 25 percent automobile tariff to be unacceptable.' Could the US extend its tariffs deadline past July? President Trump could decide to extend the deadline for reimposing tariffs on most of the world's countries, the White House said on Thursday. Trump's July deadline for restarting tariffs is 'not critical', White House Press Secretary Karoline Leavitt told reporters. 'Perhaps it could be extended, but that's a decision for the president to make,' Leavitt said. She also said that if any of those countries refuse to make a trade deal with the US by the deadlines, 'the president can simply provide these countries with a deal'. 'And that means the president can pick a reciprocal tariff rate that he believes is advantageous for the United States, and for the American worker,' she added. Meanwhile, White House National Economic Council Director Kevin Hassett told Fox Business on Tuesday: 'We know that we're very, very close to a few countries.'
Bloomberg
a day ago
- Business
- Bloomberg
The US and China Finally Reach on Understanding on Trade
Good morning. The US and China have finally reached an understanding on trade. The personnel carousel continues at Tesla. And a mystery $33 billion fortune collapses. Listen to the day's top stories. At last, kinda. The on-off-on-again US-China trade deal was signed two days ago, Commerce Secretary Howard Lutnick said. Beijing confirmed some aspects of a framework accord, which includes a pledge to deliver rare earths but doesn't address thorny issues like fentanyl trafficking. There was no detailed readout. Deals with 10 other countries are imminent, including a 'very big' one with India, President Trump said. Meanwhile, the EU may prove a harder nut to crack.
Globe and Mail
a day ago
- Business
- Globe and Mail
Asian shares are mixed after US stocks rise to the brink of a record
MANILA, Philippines (AP) — Asian shares were mixed on Friday, losing some of their morning gains, after U.S. stocks ran to the brink of another record. U.S. futures and oil prices also logged modest gains. Investors were watching for further details after President Donald Trump said the U.S. and China had signed a trade deal. Commerce Secretary Howard Lutnick said in an interview on Bloomberg TV that the deal was signed two days ago, but he gave no details, saying 'The president likes to close these deals himself.' China's Commerce Ministry said Friday that the two sides had 'further confirmed the details of the framework.' But its statement was vague, not explicitly mentioning an agreement to ensure U.S. access to rare earths, materials used in high-tech applications that have been at the center of negotiations. 'China will approve the export applications of controlled items that meet the conditions in accordance with the law. The United States will cancel a series of restrictive measures taken against China accordingly. It is hoped that the United States and China will meet each other halfway,' it said. Worries about Trump's higher tariffs have receded since the president shocked the world in April with stiff proposed levies, but they have not disappeared. The wait is still on to see how big the tariffs will ultimately be, how much they will hurt the economy and how much they will push up inflation. Hong Kong's Hang Seng index lost 0.3% to 24,250.77, while the Shanghai Composite index gave up 0.7% to 3,424.23 after China reported that industrial profits slid 9.1% in May, the sharpest drop since last October. 'Beijing may have paused the worst of the trade fight with Washington, but the tariff scars are showing—and unless demand picks up or pricing stabilizes, the pressure on margins and business sentiment will linger,' Stephen Innes, Managing Partner at SPI Asset Management, said in a commentary. Tokyo's Nikkei 225 index 1.4% to 40,150.79 as the government reported that consumer prices eased slightly in May. South Korea's KOSPI Composite Index fell 0.8% to 3,055.94, while Australia's S&P/ASX 200 shed 0.4% at 8,514.20. Markets have settled somewhat after the upheavals of the Israel-Iran war and its aftermath. On Thursday, the S&P 500 climbed 0.8% to 6,141.02 and was sitting just 0.05% below its all-time closing high set in February. It briefly topped the mark during the afternoon in the latest milestone for the index at the heart of many 401(k) accounts, which had dropped roughly 20% below its record during the spring on worries about President Donald Trump's tariffs. The Dow Jones Industrial Average rallied 0.9% to 43,386.84, and the Nasdaq composite gained 1% to 20,167.91. Reports Thursday added to evidence the U.S. economy is holding up despite higher tariffs and other challenges, though it has slowed. Orders for washing machines and other manufactured goods that last at least three years grew by more last month than economists expected. Another report said fewer U.S. workers filed for unemployment benefits last week, a potential signal of fewer layoffs. A third report said the U.S. economy shrank by more during the first three months of 2025 than earlier estimated. But many economists say those numbers were distorted by a surge in imports as companies tried to get ahead of tariffs. They're expecting a better performance in upcoming months. Following the reports, Treasury yields swiveled up and down in the bond market before easing. The yield on the 10-year Treasury fell to 4.24% from 4.29% late Wednesday. The two-year Treasury yield, which more closely tracks expectations for what the Federal Reserve will do, fell to 3.71% from 3.74% late Wednesday. Analysts said yields may have felt pressure because of a report from The Wall Street Journal saying Trump could name his nominee to replace Fed Chair Jerome Powell unusually early, in an attempt to undermine him. That could hurt confidence among investors about the Fed's capability to make unpopular decisions when it comes to fighting inflation. In other dealings on Friday, the U.S. benchmark crude gained 32 cents to $65.56 per barrel. Brent crude, the international standard, added 34 cents to $67.03 per barrel. The U.S. dollar rose to 144.50 Japanese yen from 144.40 yen. The euro edged higher to $1.1715 from $1.1703.
Globe and Mail
a day ago
- Business
- Globe and Mail
Asian shares are mostly higher after US stocks rise to the brink of a record
MANILA, Philippines (AP) — Asian were mostly higher on Friday after U.S. stocks ran up to the edge of another record. U.S. futures and oil prices also logged slight gains. Investors were watching for further details after President Donald Trump said the U.S. and China had signed a trade deal. Commerce Secretary Howard Lutnick said in an interview on Bloomberg TV that the deal was signed two days ago, but he gave no details, saying 'The president likes to close these deals himself.' Worries about Trump's higher tariffs have receded since the president shocked the world in April with stiff proposed levies, but they have not disappeared. The wait is still on to see how big the tariffs will ultimately be, how much they will hurt the economy and how much they will push up inflation. Hong Kong's Hang Seng index was barely changed at 24,333.43, while the Shanghai Composite index lost 0.2% to 3,441.30. Tokyo's Nikkei 225 index surged 1.6% to 40,215.36 as the government reported that consumer prices eased slightly in May. South Korea's KOSPI Composite Index slid 0.7% to 3,050.01. Markets have settled somewhat after the upheavals of the Israel-Iran war and its aftermath. On Thursday, the S&P 500 climbed 0.8% to 6,141.02 and was sitting just 0.05% below its all-time closing high set in February. It briefly topped the mark during the afternoon in the latest milestone for the index at the heart of many 401(k) accounts, which had dropped roughly 20% below its record during the spring on worries about President Donald Trump's tariffs. The Dow Jones Industrial Average rallied 0.9% to 43,386.84, and the Nasdaq composite gained 1% to 20,167.91. Reports Thursday added to evidence the U.S. economy is holding up despite higher tariffs and other challenges, though it has slowed. Orders for washing machines and other manufactured goods that last at least three years grew by more last month than economists expected. Another report said fewer U.S. workers filed for unemployment benefits last week, a potential signal of fewer layoffs. A third report said the U.S. economy shrank by more during the first three months of 2025 than earlier estimated. But many economists say those numbers were distorted by a surge in imports as companies tried to get ahead of tariffs. They're expecting a better performance in upcoming months. Following the reports, Treasury yields swiveled up and down in the bond market before easing. The yield on the 10-year Treasury fell to 4.24% from 4.29% late Wednesday. The two-year Treasury yield, which more closely tracks expectations for what the Federal Reserve will do, fell to 3.71% from 3.74% late Wednesday. Analysts said yields may have felt pressure because of a report from The Wall Street Journal saying Trump could name his nominee to replace Fed Chair Jerome Powell unusually early, in an attempt to undermine him. That could hurt confidence among investors about the Fed's capability to make unpopular decisions when it comes to fighting inflation. On Wall Street, spices company McCormick jumped 5.3% after delivering a better-than-expected profit report and giving a full-year profit forecast that topped analysts' expectations, including planned efforts to offset increased costs caused by tariffs. Over the longer term, it's been big technology stocks that have led the market for years and since the S&P 500 hit a trough in April. Chip company Nvidia, which has been the poster child of the frenzy around artificial-intelligence technology, added 0.5%. It's the most valuable company in the U.S. stock market after rushing 61% higher since April 8, towering over the S&P 500's gain of 23%. Another AI darling, Super Micro Computer, rose 5.7% to bring its gain since April 8 to 55%. In other dealings early Friday, the U.S. benchmark crude gained 35 cents to $65.59 per barrel. Brent crude, the international standard, added 36 cents to $67.05 per barrel The U.S. dollar rose to 144.45 Japanese yen from 144.40 yen. The euro fell to $1.1699 from $1.1703.
