Latest news with #tradeagreements
The Verge
10 hours ago
- Business
- The Verge
Will online safety laws become the next tariff bargaining chip?
President Donald Trump and other Republicans have railed for years against foreign regulation of US tech companies, including online safety laws. As the US fights a global tariff war, it may bring those rules under fire — just as some of them are growing teeth. Over the past weeks, Trump has touted a blitz of trade deals, seeking concessions from countries in exchange for lower tariffs. This has coincided with the rollout of new child safety measures in the European Union and United Kingdom, most recently a new phase of the UK's Online Safety Act (OSA), which effectively age-gates porn, bullying, and self-harm promotion, as well as other categories of content considered harmful to kids. Several major tech platforms have willingly implemented age verification systems or limited access to forums that might contain adult content. But they've lobbied against such measures in the US, and they've generally opposed foreign laws that might disproportionately impact US firms. Information Technology and Innovation Foundation, a tech-funded nonprofit, has referred to Europe's key competition and content moderation rules as 'non-tariff attacks' and complained they unfairly target American businesses and 'extract exorbitant fines.' During tariff negotiations, Trump has been open about pushing countries to drop laws that he dislikes. The EU's Digital Markets Act (DMA) and Digital Services Act (DSA) have arguably taken the brunt of the ire so far, as have digital services taxes, which Canada removed under pressure from Trump last month. But the OSA came up recently in the context of Trump's own online platform, Truth Social, which could plausibly be subject to the law. 'If they censor me, you're making a mistake' At a July 28th press conference with Trump and British Prime Minister Keir Starmer, a reporter asked about 'new powers' that could be used to censor sites like Truth Social. Starmer said the UK was not trying to censor people online, simply protect kids from harmful content, but Trump made a subtle threat in a lighthearted tone. 'I cannot imagine him censoring Truth Social,' Trump said. 'I only say good things about him and his country, so if they censor me, you're making a mistake.' Trump quickly touted his own online content regulation bill, the Take It Down Act, which has been similarly criticized as a potential vehicle for censorship. Tech companies' objection to age verification and other child safety rules have been more muted than their criticism of the DMA and DSA in general. They may not see an existential threat in implementing age verification processes, compared with a potential antitrust investigation and breakup or the DSA's huge fines for not addressing harmful content. But the US hasn't landed on a clear vision for internet safety regulation, creating a mismatch between its laws and those abroad. Mariana Olaizola Rosenblat, a policy advisor on technology and law at the NYU Stern Center for Business and Human Rights, says that in the 'vacuum' of a US legislative standstill and trivial self-regulation, 'foreign jurisdictions have been left with little choice but to act.' That leaves room for tension, depending particularly on how heavily UK regulator Ofcom enforces the OSA — in other words, how much trouble it causes tech companies. Posts from this author will be added to your daily email digest and your homepage feed. See All by Lauren Feiner Posts from this topic will be added to your daily email digest and your homepage feed. See All Analysis Posts from this topic will be added to your daily email digest and your homepage feed. See All Features Posts from this topic will be added to your daily email digest and your homepage feed. See All Law Posts from this topic will be added to your daily email digest and your homepage feed. See All Policy Posts from this topic will be added to your daily email digest and your homepage feed. See All Politics Posts from this topic will be added to your daily email digest and your homepage feed. See All Regulation Posts from this topic will be added to your daily email digest and your homepage feed. See All Speech
Yahoo
5 days ago
- Business
- Yahoo
Trade deals fuel Wall Street gains while Trump renews Fed attack
Wall Street closed the week higher, with tech-heavy indices notching fresh records as upbeat corporate earnings, resilient macro data and breakthrough trade deals converged to boost risk appetite. The U.S. finalized new trade agreements with Indonesia, the Philippines and Japan. The Tokyo deal was the most significant, locking in a reduction in tariffs on Japanese autos and goods from 25% to 15%, while Japan pledged $550 billion in investment and improved access to American-made goods. A U.S.-EU trade deal is now reportedly close, expected to align with the Japan framework and potentially ease existing tariff rates ahead of the Aug. 1 deadline. Separately, President Donald Trump signed an executive order to boost the U.S. artificial intelligence sector by promoting the export of full-stack AI systems to trusted global partners. The White House said the move is aimed at strengthening economic leadership and national security. Among the week's strongest performers, Thermo Fisher Scientific rallied over 12%, topping the leaderboard for large-cap stocks, followed by T-Mobile US, up 9%. Within the Magnificent Seven, Alphabet rose by 1% after delivering better-than-expected results and raising its 2025 capex outlook by $10 billion, reinforcing its commitment to scaling AI infrastructure. More: S&P 500, Nasdaq 100 hit fresh highs as even retail scores wins over the week Tesla dropped 8.2% following cautious commentary from CEO Elon Musk, who warned that upcoming quarters could prove challenging amid rising costs and margin pressures. Economic indicators added fuel to the rally. U.S. business activity surprised to the upside, with the Composite Purchasing Managers' Index climbing to a seven-month high in July, helped by expansion in services and steady consumer strength. Trump's push to influence monetary policy continued with an unannounced visit to the Federal Reserve's headquarters in Washington, D.C. — the first by a sitting president in nearly 20 years. Wearing a hard hat alongside Fed Chair Jerome Powell, Trump criticized the central bank's renovation project, claiming costs had surged to $3.1 billion. Powell countered on the spot, clarifying that the real cost is closer to $2.5 billion, excluding unrelated construction. Pressed on rate policy, Trump said, 'I'd love to see him lower interest rates.' Markets now shift focus to the July 30 Fed meeting, where expectations remain anchored for a hold — but not without growing political heat. Benzinga is a financial news and data company headquartered in Detroit. This article originally appeared on Detroit Free Press: Trade deals fuel Wall Street gains while Trump renews Fed attack 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
24-07-2025
- Business
- Yahoo
Deals, but no details: Trump's trade negotiations are big on numbers, light on specifics
President Donald Trump has begun announcing a suite of new bilateral trade agreements. The details of the deals — and who, if anyone, stands to benefit — remain largely unknown. On Tuesday, Trump heralded three new agreements with Indonesia, the Philippines and Japan. The announcements came with no information about enforcement or guarantees, outside of tariff levels stated by Trump — 19% for the first two, 15% for Japan — and promises of eliminating barriers on imports of U.S. products. Instead, the deals have been overshadowed by warnings from U.S. firms about the impact of Trump's tariffs to their bottom lines, prolonging a cloud of uncertainty over a U.S. economy already operating at stall speed. While recession odds have been dialed back in recent weeks, economists surveyed by The Wall Street Journal still see 33% odds of one coming within a year, compared with 22% at the start of 2025. Meanwhile, earnings estimates for the S&P 500 compiled by research group FactSet are 3% lower since then, the Journal said. And even as major stock indexes continue to churn higher to near-records, analysts say the gains are increasingly driven by an ever-narrower band of companies, like tech firms, that are largely unaffected by the tariffs. Reuters reported this week that out of 68 U.S. companies that have provided explicit reactions to tariffs, 26 have issued profit margin warnings, while 24 have announced price hikes. It is not clear how any of the new deals will improve matters. The most significant new agreement recently announced by Trump is with Japan. It imposes a 15% tax on products imported from that country, with Japan pledging to 'open' itself to more U.S. products 'including cars and trucks, rice and certain other agricultural products and other things.' Trump also announced an unspecified investment worth $500 billion, of which the U.S. would take 90% of profits. Commerce Secretary Howard Lutnick said Wednesday the $500 billion would be able to be used for 'anything' — from manufacturing pharmaceuticals to building semiconductor factories or mining critical minerals. Japan 'will finance the project and then we'll give it to an operator who will run it and the profits will be split — 90% to the taxpayers of the United States and 10% to the Japanese,' he said. Asked if the billions were just loan guarantees, Lutnick said it encompassed 'equity, loans and loan guarantees.' He added that Japan would 'be the banker' for projects the U.S. wanted to pursue. Lutnick said the investment was proposed along with lowering tariffs to 15% because 'the Japanese are never going to really open their market the way Donald Trump wants them to open it.' Shortly after Lutnick made those comments on Bloomberg Television, Trump wrote on his Truth Social platform, saying that 'Japan is, for the first time ever, OPENING ITS [MARKET] TO THE USA,' adding that the deal includes 'cars, SUV's, Trucks, -and everything else.' Setting aside the contradictory remarks, the deal serves to massively increase the effective tax rate charged to companies importing Japanese products, from 2% to 15%. With most analysts agreeing that the importing firm — and, in many cases, the end consumer — ultimately pays the tariff, it translates to nearly $23 billion in lost private spending power in the U.S. economy given the approximately $150 billion worth of goods the U.S. imports from Japan. Early Wednesday, Detroit's Big Three automakers expressed their concerns about the Japan deal, saying that if nothing changes, Japanese auto imports now face a lower tariff rate than those imported from Canada and Mexico, where the trio still maintain much of their production capacity. The warning came after GM announced a $1 billion hit to its profits from tariffs already being collected. 'Any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American built vehicles with high U.S. content is a bad deal for U.S. industry and U.S. auto workers,' Matt Blunt, who heads the American Automotive Policy Council, said in a statement. Investors are also reacting, but not the way they used to. Unlike at the outset of his second term, when Trump's tariffs rollout caused one of the sharpest sell-offs in history, markets now shrug when Trump announces new deals — simultaneously waiting for the impact from tariffs to show up in the economy, while also unsure that what Trump announced will actually end up sticking. In a note to clients published Wednesday, analysts with Piper Sandler financial group said they doubt the deals being cut will last. 'These deals are made under duress,' they wrote. 'Instead of being based on fixed principles of free or fair trade — or you might say, reciprocity — these deals are all about leverage. But leverage shifts all the time.' For now, they said, it is clear that any agreements Trump announces will include higher import duties. 'Investors should expect higher tariffs after August 1,' they wrote. This article was originally published on Sign in to access your portfolio
Bloomberg
23-07-2025
- Automotive
- Bloomberg
Outlines Emerge of a Trump-Engineered New Trade Landscape
The details may still be unclear, but US President Donald Trump's latest tariff deals with Japan and the Philippines are providing a sketch of the new trade landscape in Asia. Trump on Tuesday announced a deal with Japan that sets tariffs on the nation's imports at 15%, including for autos — by far the biggest component of the trade deficit between the countries. A separate agreement with the Philippines set a 19% rate, the same level as Indonesia agreed and a percentage point below Vietnam's 20% baseline level, signaling that the bulk of Southeast Asia is likely to get similar deals.
Arab News
21-07-2025
- Business
- Arab News
US not rushing trade deals ahead of August deadline, will talk with China, Bessent says
* Treasury's Bessent says higher tariffs pressure countries to make deals * EU exploring broader counter-measures, diplomats say * Trump to meet with Philippine President Marcos on Tuesday * Japanese trade negotiator to return to Washington By Andrea Shalal and Susan Heavey WASHINGTON, July 21 : The Trump administration is more concerned with the quality of trade agreements than their timing, US Treasury Secretary Scott Bessent said on Monday ahead of an August 1 deadline for countries to secure trade deals or face steep tariffs. 'We're not going to rush for the sake of doing deals,' Bessent told CNBC. Asked whether the deadline could be extended for countries engaged in productive talks with Washington, Bessent said US President Donald Trump would decide. 'We'll see what the president wants to do. But again, if we somehow boomerang back to the August 1 tariff, I would think that a higher tariff level will put more pressure on those countries to come with better agreements,' he said. Trump has upended the global economy with a trade war that has targeted most US trading partners, but his administration has fallen far short of its plan to clinch deals with dozens of countries. Negotiations with India, the European Union, Japan, and others have proven more trying than expected. White House press secretary Karoline Leavitt told reporters Trump could discuss trade when he meets with Philippine President Ferdinand Marcos Jr. at the White House on Tuesday. She said the Trump administration remained engaged with countries around the world and could announce more trade deals or send more letters notifying countries of the tariff rate they faced before August 1, but gave no details. Leavitt's comments came as European Union diplomats said they were exploring a broader set of possible counter-measures against the US, given fading prospects for an acceptable trade agreement with Washington. An increasing number of EU members, including Germany, are now considering using 'anti-coercion' measures that would let the bloc target US services or curb access to public tenders in the absence of a deal, diplomats said. 'The negotiations over the level of tariffs are currently very intense,' German Chancellor Friedrich Merz told a press conference. 'The Americans are quite clearly not willing to agree to a symmetrical tariff arrangement.' US-CHINA TALKS SOON On China, Bessent said there would be 'talks in the very near future.' 'I think trade is in a good place, and I think, now we can start talking about other things. The Chinese, unfortunately ... are very large purchasers of sanctioned Iranian oil, sanctioned Russian oil,' he said. 'We could also discuss the elephant in the room, which is this great rebalancing that the Chinese need to do.' US officials have long complained about China's overcapacity in various manufacturing sectors, including steel. Bessent told CNBC he would encourage Europe to follow the United States if it implements secondary tariffs on Russia. The Treasury chief, who returned from a visit to Japan on Sunday, said the administration was less concerned with the Asian country's domestic politics than with getting the best deal for Americans. Japan's chief tariff negotiator Ryosei Akazawa departed for trade talks in Washington on Monday morning, his eighth visit in three months, after the ruling coalition of Japanese Premier Shigeru Ishiba suffered a bruising defeat in upper house elections shaped in part by voter frustration over US tariffs. Indian trade negotiators returned to New Delhi after almost a week of talks in Washington, but officials were losing hope of signing an interim trade deal before the August 1 deadline, government sources said.
