Latest news with #tariffs
Yahoo
23 minutes ago
- Business
- Yahoo
Bessent says trade talks could be finished by Labor Day
Treasury Secretary Scott Bessent on Friday signaled that the Trump administration's tariff negotiations with more than a dozen trading partners could stretch until September. 'We have 18 important trading partners — U.K., China are behind us for now — and then Secretary [Howard] Lutnick said yesterday that he expects 10 more deals. So, if we can ink 10 or 12 of the important 18 — there are another important 20 relationships — then I think we could have trade wrapped up by Labor Day,' Bessent told Fox Business's Maria Bartiromo. President Donald Trump on Friday also told reporters the previously announced July deadline remains flexible during a press conference. "We can do whatever we want," Trump said. "We could extend it, we could make it shorter. I'd like to make it shorter. I'd like to just send letters out to everybody: 'Congratulations, you're paying 25 percent.'" The comments echo similar messaging from other administration officials, including White House Council of Economic Advisers Chair Stephen Miran, who said Thursday that Trump may decide to extend the previously announced July 8 deadline for certain countries. 'As President Trump has said, he's created maximum negotiating leverage for Ambassador [Jamieson] Greer, Secretary Lutnick and myself by saying if you can't get to a deal, he's happy to go back to the April 2 levels, so we have countries approaching us with very good deals,' Bessent said. The Trump administration has threatened to slap tariffs as high as 50 percent on dozens of trading partners if they don't strike deals by July 8, with those that do ink agreements still subject to a baseline rate of 10 percent. Miran said Thursday some countries could 'convince the president to lower tariffs below 10 percent' with 'aggressive concessions.' U.S. stocks hit record highs Thursday after Trump said the U.S. had reached an agreement with China. Commerce Secretary Lutnick said in a Thursday interview with Bloomberg Radio that the administration is finalizing deals with 10 key trading partners.
Yahoo
an hour ago
- Business
- Yahoo
Surprising jobs data shows economy in flux
Surprising jobs data shows economy in flux originally appeared on TheStreet. It's been one "strong job market report" after another. Investors continue dancing to that beat, as we stare down a record high for the S&P 500. 💵💰💰💵 Mr. Market is brushing off any wobble in weekly unemployment claims as mostly seasonal noise. Peel back the curtain, however, and the continuing claims paint a more mixed story about a fragile economic state. The latest jobless claims update drives that point home and could shake the economy. Over the past few months, weekly jobless claims in the U.S. have fallen in a pattern that gives off mixed signals. In early April, initial claims nudged up to 223,000 in the week ending April 5. This represents a modest rise of 4,000, but economists expected the number to remain flat. Businesses were already feeling the heat due to the threat of new tariffs, and March hiring numbers were underwhelming. Just 228,000 jobs were added, with unemployment ticking up to 4.2%.A few weeks later, in late April, things got shakier. Claims rose by 18,000 to 241,000, the highest they'd been in a couple of months. Sure, spring breaks played a part, but beneath the surface, you had corporate America feeling the squeeze from tariffs. May brought its mix of highs and lows as well. Things picked up strongly, with claims dropping by 13,000 to 228,000. By mid-month, filings hovered around 229,000, but by May 24, claims shot up to 240,000, the biggest weekly spike in over a year. It wasn't just about the seasonal hires this time, though. More on Markets: Housing market update spells more trouble Why Thursday's market bell might echo in history Wall Street veteran analyst who predicted stock market rally resets forecast Layoffs were starting to impact areas like transportation and hospitality, once considered safe from recession talk. And June's data felt more like walking a tightrope. The month kicked off with claims climbing to 248,000, and up until last week, the four-week average crept up to 245,500, the highest it's been in nearly two years. That was all before today's update, adding a new twist to the story. For the week ending June 21, initial jobless claims dropped to 236,000, 10,000 lower than the week before and below the 244,000 forecast. That comes with a catch, though, as last week's numbers were quietly revised to 246,000 — a soft win, at best. Meanwhile, continuing claims surged by 37,000 to 1.974 million, the highest since late clearly indicates that more folks are stuck on benefits significantly longer than expected, clipping away at their disposable incomes. Unadjusted state filings dropped 4% to 227,080, again mostly in line with last year once you factor out seasonal noise. Moreover, with the insured unemployment rate at 1.2%, things continue to look bleak for those already out of work. Nevertheless, it seems the markets are shrugging off those darker themes. S&P 500 futures briefly popped to 6,171 earlier today, topping the prior intraday record of 6,166. Hence, Mr. Market's still buying the corporate resilience story, even as the jobless rolls tell a more cautionary jobs data shows economy in flux first appeared on TheStreet on Jun 26, 2025 This story was originally reported by TheStreet on Jun 26, 2025, where it first appeared. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
2 hours ago
- Business
- Yahoo
Fed Chief Kashkari's 'Wait-and-See' on Rate Cuts
Minneapolis Fed chief Neel Kashkari still sees room for two rate cuts this yearmaybe kicking off around Septemberbut he's urging colleagues to stay nimble, since today's tariffs could fuel tomorrow's inflation. In a Friday essay, Kashkari admitted that inflation is inching back toward the Fed's 2% goal, yet he's worried that Trump's sweeping tariffs have injected fresh uncertainty. He's kept his call for two cuts in 2025 (first one tentatively in September), but he's clear: don't pencil in an easing path now only to discover later that higher import fees have bumped up consumer prices. Most Fed speakers this weekexcept Governors Waller and Bowmanhaven't even seriously entertained a July cut. Kashkari wants the focus on actual inflation and real economic data, not a pre-set calendar commitment. If tariffs stick around, businesses will likely pass those extra costs on to you and me. By staying data-driven, Kashkari hopes to avoid a policy misstep that could let inflation creep back in. Keep an eye on incoming CPI and PCE reportsand any fresh trade headlines. If the tariff saga deepens, Kashkari's call for flexibility could push rate cuts into late 2025or beyond. This article first appeared on GuruFocus. 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
Malay Mail
2 hours ago
- Business
- Malay Mail
Trump halts Canada trade talks over digital tax on US tech giants, tariffs to be announced within a week
WASHINGTON, June 28 — President Donald Trump said yesterday he is calling off trade negotiations with Canada in retaliation for taxes impacting US tech firms, adding that Ottawa will learn of their new tariff rate within a week. Trump was referring to Canada's digital services tax, which was enacted last year and forecast to bring in CA$5.9 billion (RM17.76 billion) over five years. While the measure is not new, US service providers will be 'on the hook for a multi-billion dollar payment in Canada' come June 30, noted the Computer & Communications Industry Association recently. The three percent tax applies to large or multinational companies such as Alphabet, Amazon and Meta that provide digital services to Canadians, and Washington has previously requested dispute settlement talks over the matter. 'Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,' Trump said in a post on his Truth Social platform Friday. Canada may have been spared some of Trump's sweeping duties, but it faces a separate tariff regime. Trump has also imposed steep levies on imports of steel, aluminium and autos. Last week, Canadian Prime Minister Mark Carney said Ottawa will adjust its 25 percent counter tariffs on US steel and aluminium — in response to a doubling of US levies on the metals to 50 percent — if a bilateral trade deal was not reached in 30 days. 'We will continue to conduct these complex negotiations in the best interest of Canadians,' Carney said Friday, adding that he had not spoken to Trump on the day. US Treasury Secretary Scott Bessent told CNBC that Washington had hoped Carney's government would halt the tax 'as a sign of goodwill.' He now expects US Trade Representative Jamieson Greer to start a probe to determine the harm stemming from Canada's digital tax. China progress Trump's salvo targeting Canada came shortly after Washington and Beijing confirmed finalising a framework to move forward on trade. A priority for Washington in talks with Beijing had been ensuring the supply of the rare earths essential for products including electric vehicles, hard drives and national defence equipment. China, which dominates global production of the elements, began requiring export licences in early April, a move widely viewed as a response to Trump's blistering tariffs. Both sides agreed after talks in Geneva in May to temporarily lower steep tit-for-tat duties on each other's products. China also committed to easing some non-tariff countermeasures but US officials later accused Beijing of violating the pact and slow-walking export licence approvals for rare earths. They eventually agreed on a framework to move forward with their Geneva consensus, following talks in London this month. A White House official told AFP on Thursday that the Trump administration and China had 'agreed to an additional understanding for a framework to implement the Geneva agreement.' This clarification came after the US president told an event that Washington had inked a deal relating to trade with China, without providing details. Under the deal, China 'will review and approve applications for the export control items that meet the requirements in accordance with the law,' China's commerce ministry said. 'The US side will correspondingly cancel a series of restrictive measures against China,' it added. Upcoming deals? Dozens of economies, although not China, face a July 9 deadline for steeper duties to kick in — rising from a current 10 percent. It remains to be seen if countries will successfully reach agreements to avoid them before the deadline. On talks with the European Union, for example, Trump told an event at the White House on Friday: 'We have the cards. We have the cards far more than they do.' But Bessent said Washington could wrap up its agenda for trade deals by September, indicating more agreements could be concluded, although talks were likely to extend past July. Bessent told Fox Business there are 18 key partners Washington is focused on pacts with. 'If we can ink 10 or 12 of the important 18, there are another important 20 relationships, then I think we could have trade wrapped up by Labor Day,' Bessent said, referring to the US holiday on September 1. Wall Street's major indexes finished at fresh records as markets cheered progress in US-China trade while shrugging off concerns about Canada. — AFP
Yahoo
2 hours ago
- Business
- Yahoo
Trump wants Canada's digital services tax gone before trade talks resume
U.S. President Donald Trump says he's ending all trade discussions with Canada to hit back at Ottawa for slapping a tax on web giants — and he wants it removed before negotiations can begin again. Canada and the U.S. have been locked in talks to get Trump to lift his punishing tariffs on Canadian goods, levies that have already led to major economic dislocations, job losses and a drop in southbound exports. Trump and Prime Minister Mark Carney agreed at the G7 last week to reach some agreement on the trade dispute within 30 days. Speaking in the Oval Office on Friday afternoon, Trump said the U.S. has "such power over Canada," and that he's upset the country is following a taxation strategy similar to Europe's. "It's not going to work out well for Canada. They were foolish to do it," he said of imposing the DST, which was passed into law last year with a delayed application."We're going to stop all negotiations with Canada right now until they straighten out their act," he said. Asked if there's anything Canada can do to appease him, Trump said Ottawa could remove the tax. "They will," he said. "They do most of their business with us. When you have that circumstance, you treat people better." Earlier Friday, Trump posted on social media he may impose some sort of blanket tariff on Canadian goods as retribution for the DST, which will primarily hit U.S. firms since it targets only the biggest earners. Speaking briefly to reporters before Trump's Oval Office comments, Carney said he hadn't talked with Trump that day. "We'll continue to conduct these complex negotiations in the best interest of Canadians," Carney said. He did not address a reporter's question about whether his government is prepared to drop the DST — something the Business Council of Canada is calling on Ottawa to do in exchange for U.S. tariff relief. Set to take effect on June 30, the DST would have U.S. companies like Amazon, Google, Meta, Uber and Airbnb pay a three per cent levy on revenue from Canadian users. The policy will apply retroactively, leaving U.S. companies with a $2-billion US bill due at the end of the month. These global digital firms are often able to skirt paying taxes in the countries where they operate, and the last Liberal government pitched the DST as a way to bring the tax code up to date and capture revenues earned in Canada by firms located abroad. U.S. long opposed DST It's been a bone of contention between Canada and the U.S. for years, with former president Joe Biden's ambassador to Canada warning during his tenure that, if a DST was enacted, the U.S. would hit back. While Canada and other Organization for Economic Co-operation and Development (OECD) countries had been discussing some sort of global DST, the Trudeau government decided to move ahead with its own tax rather than wait for co-ordinated action. Carney's finance minister, François-Philippe Champagne, said last week Ottawa planned to enact the tax even while negotiations with Trump are ongoing. That's what's prompted the president's ire. "We have just been informed that Canada, a very difficult Country to TRADE with, including the fact that they have charged our Farmers as much as 400% Tariffs, for years, on Dairy Products, has just announced that they are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country," Trump said. WATCH | Foreign Affairs minister on the trade war: As he has done in the past, Trump mischaracterized Canada's tariff regime on U.S. dairy products. The high tariff rates Trump frequently cites are only applied if U.S. exports exceed a set "tariff-rate quota," something that has never happened. Trump's own Department of Agriculture noted earlier this year that almost all agricultural products traded between the United States and Canada are free of tariffs. In an interview with CBC's Power & Politics, Foreign Affairs Minister Anita Anand said supply management, which places limits on certain products, including dairy, to ensure stable prices, is a "cornerstone" Canadian economic policy that is "extremely important." Anand said that despite Trump's threats, Canada will push ahead with trying to broker a deal that's in the best interest of workers and businesses, "while at the same time ensuring we diversify our supply chains so we are never again dependent on one economy." She touted the New EU-Canada Strategic Partnership of the Future that Carney brokered with the European Union earlier this week. Trump's abrupt decision to call off negotiations may have caught Canadian officials off guard. Speaking to CBC Radio's The House hours before Trump's post, Canada-U.S. Trade Minister Dominic LeBlanc said Canada's negotiators "continue to be optimistic about the constructive tone" between the two countries. Still, Candace Laing, president of the Canadian Chamber of Commerce, said there have been signs the "tone and tenor of talks has improved in recent months." Trump and Carney have had two friendly meetings in that time, and she hopes to see "progress continue" despite Trump's apparent attempt to derail the talks. "Negotiations go through peaks and valleys. With deadlines approaching, some last-minute surprises should be expected," Laing said.
