Latest news with #DonaldTrump
Al Etihad
23 minutes ago
- Business
- Al Etihad
Trump says tariff relief possible if EU opens market to US firms
24 July 2025 08:34 WASHINGTON (DPA)US President Donald Trump said on Wednesday that the United States is prepared to lower tariffs on European goods if the European Union opens its market further to US companies."If they agree to open up the union to American businesses, then we will let them pay a lower tariff," Trump said at an AI-focused event, referring to the ongoing negotiations with the EU. He added that serious talks were currently US has been negotiating with the EU for weeks on a trade deal to prevent US tariffs of 30% on imports from the bloc from taking effect on August German Chancellor Friedrich Merz, and French President Emmanuel Macron presented a united front during talks in Berlin on Wednesday, signalling that the EU is prepared to respond if negotiations with Washington government spokesman Stefan Kornelius said the two leaders agreed to keep the option of additional trade measures on the table should talks with the US fail. He added that Merz and Macron were also prepared to devise new instruments, if necessary. Kornelius said Germany and France also plan to closely coordinate with Italy and the European Commission as the talks with Washington enter their final phase.
Zawya
23 minutes ago
- Automotive
- Zawya
US-Japan trade deal averts worst for global economy
FRANKFURT - Japan's trade agreement with the U.S. could serve as the benchmark for many other deals currently being negotiated with Washington, and the global economy could just about support the 15% level agreed overnight, economists said. Tokyo's deal with the U.S. lowers tariffs on auto imports to 15% from levies totalling 27.5% previously. Duties that were due to come into effect on other Japanese goods from August 1 will also be cut to 15% from 25%. The deal with the world's fourth-largest economy, which includes commitments for U.S.-bound investment and loans, is the most significant of a clutch of pacts U.S. President Donald Trump has concluded to date. It raises pressure on China and the European Union, which both face crucial August deadlines. Although 15% is still a significant duty, such a level is still manageable and less damaging than the volatility created by the uncertainty, which has made it near impossible for firms to plan investments, some economists argue. "Average tariffs for the U.S. were around 2.5% for 2024 (while) currently, average tariffs stand around 17%," Mohit Kumar at Jefferies said, referring to the rise in global duties since Trump's so-called "Liberation Day" announcement on April 2. "Our base case remains that when the dust settles, we could see average tariffs around 15%, though recent deals suggest that this number could be slightly higher," Kumar said. "While a negative from a macro point of view, the world can live with 15% or so tariffs." Financial markets heaved a sigh of relief on Wednesday. AUTOMAKERS LEAD STOCK GAINS Japan's Nikkei stock index jumped 3.5% on the deal but European shares were also higher, driven by automakers, on growing optimism that workable deals are possible. "It looks like the benchmark for major economies is going to be 10-15% and a somewhat higher level for smaller economies," Derek Halpenny, head of research at MUFG in London, said. Volvo Car stocks jumped more than 10% while Germany's Porsche, BMW, Mercedes-Benz and Volkswagen, all with significant U.S. sales, rose between 4% and 7%. "This more positive trade news has really helped to ease investor fears that tariffs are about to snap back higher on August 1," Deutsche Bank's Jim Reid said. "But of course, the threat of much higher tariffs still remains for several large economies, including the 30% on the EU, 35% on Canada and 50% on Brazil," Reid added. "We also know from experience that we might not know the outcome until hours before the deadline." Longer-term U.S. inflation expectations eased a touch on the deal, suggesting that trade agreements could alleviate some price fears and give the U.S. Federal Reserve room to lower interest rates later this year. However, markets continue to see a close to zero chance of a Fed rate cut next week and the first move is not fully priced in until October. The EU, which negotiates trade deals on behalf of its 27 members, could be next. Trump has said he will impose 30% tariffs by August 1, triggering threats of retaliatory measures from the EU. Such a level would be economically debilitating for a bloc that relies heavily on trade and would wipe out whole chunks of transatlantic commerce. The EU originally hoped it could secure a tariff of around 10% but has since accepted the outcome is likely to be several points higher at least. Pressures also remain high on China, which is facing an August 12 deadline before tariffs could snap back to 145% on the U.S. side and 125% on the Chinese side without a deal or a negotiated extension. "The US-Japan deal will put more pressure on other major Asia exporters to secure better deals," ING said. "We've already seen trade deals with the Philippines and Indonesia. Before 1 August, there should be more deals struck with Asian exporters." (Reporting by Balazs Koranyi; editing by Mark John and Sharon Singleton)
Zawya
23 minutes ago
- Business
- Zawya
Trump to visit Fed on Thursday, ramping up pressure on Powell
U.S. President Donald Trump, a robust critic of Federal Reserve Chair Jerome Powell, will visit the central bank on Thursday, the White House said, a surprise move that escalates tension between the central bank and the administration. Trump has lambasted Powell repeatedly for not cutting U.S. interest rates more aggressively, calling him a "numbskull" on Tuesday and musing publicly about firing him. The Republican president nominated Powell to be Fed chair during his first term but has soured on his pick over disagreements about interest rates and the economy. Between Trump's stints in office, Democratic President Joe Biden nominated Powell for a second term. Adding fuel to Trump's ire, White House officials have accused the Fed of mismanaging the renovation of two historic buildings in Washington, D.C., suggesting poor oversight and potential fraud. White House deputy chief of staff James Blair said this week that administration officials would be visiting the Fed on Thursday but did not say the president would join. In a schedule released to the media on Wednesday night, the White House said Trump would visit the Federal Reserve at 4 p.m. (2000 GMT) on Thursday. It did not say whether Trump would be meeting with Powell. A Federal Reserve official did not immediately respond to a request for comment. Initial market reaction was subdued, with the yield on benchmark 10-year Treasury bonds steady at 4.387% in Asian hours and the dollar weakening slightly. Trump's public criticism of Powell and flirtation with firing him have previously upset financial markets and threatened a key underpinning of the global financial system - that central banks are independent and free from political meddling. Typically U.S. presidents refrain from commenting on Fed policy altogether in deference to the bank's autonomy, but Trump, whose governing style blasts through political norms, has not followed that example. Since returning to office in January, Trump has attacked institutions from law firms to universities to media organizations in an effort to reshape U.S. society in line with his vision. He has used the same verbal sledgehammer against the Fed, pressuring Powell to cut rates and blaming him for not stimulating the economy further. Trump has said he would like the Fed to cut its benchmark interest rate as low as 1% from the current 4.25%-4.50% target range to reduce government borrowing costs. This would allow the administration to finance rising deficits expected from his spending and tax-cut bill. But a Fed policy rate that low is typically a sign of a country in economic trouble. (Reporting by Jeff Mason; Additional reporting by Ankur Banerjee; Editing by Scott Malone, Himani Sarkar, Kim Coghill and William Mallard)
Zawya
23 minutes ago
- Business
- Zawya
Yen, euro buoyant on trade progress
SINGAPORE: The euro crept toward its highest level in nearly four years on Thursday while the yen held to gains following more progress on trade deals between the United States and its largest trading partners, which in turn lifted the broader market mood. Currencies mostly shrugged off news that U.S. President Donald Trump, a vocal critic of Federal Reserve Chair Jerome Powell, will visit the central bank on Thursday. It was not immediately clear whether Trump, who has lambasted Powell repeatedly for not cutting U.S. interest rates more aggressively, would be meeting with the Fed chief. Markets were paying close attention to various tariff negotiations. The European Union and the U.S. are moving towards a trade agreement that could include a 15% U.S. baseline tariff on EU goods and possible exemptions, two European diplomats said on Wednesday. That came on the heels of Washington's trade deal with Tokyo that lowers tariffs on auto imports and spares the latter from punishing new levies on other goods in exchange for a $550 billion package of U.S.-bound investment and loans. Global markets took to the latest developments positively, as risk assets rallied and investors sold the U.S. dollar. The risk-sensitive Australian dollar rose to an eight-month high of $0.66135 on Thursday. The euro steadied at $1.1776, hovering near a high of $1.1830 it hit earlier this month, which marked its strongest level in more than three years. "These trade frameworks agreed between the U.S. and the major economies are definitely positive for risk sentiment," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. "We actually anticipated a risk of the U.S. and the European Union getting into retaliation mode ... but that risk of a retaliation seems to have dissipated." Against the yen, the dollar fell 0.3% to 146.01, extending its fall against the Japanese currency to a fourth straight session. While news of Japan's trade deal has lit a fire under domestic stocks, gains in the yen have been capped by lingering political uncertainty at home. Japanese Prime Minister Shigeru Ishiba denied on Wednesday he had decided to quit after a source and media reports said he planned to announce his resignation to take responsibility for a bruising upper house election defeat. "In the near term, the yen will still face headwinds from ongoing political uncertainty. We still don't know what Prime Minister Ishiba will do ... so I think there is still some uncertainty with regard to the fiscal outlook in Japan and Bank of Japan policy," said Kong. Elsewhere, sterling was firm at $1.3581, after having gained 0.36% in the previous session. The dollar index eased slightly to 97.15, while the New Zealand dollar rose 0.11% to $0.6053. Trade negotiations aside, markets will also be focused on a rate decision from the European Central Bank later in the day. Expectations are for policymakers to stand pat on rates, though markets will look out for what they say regarding the outlook for monetary policy. Investors generally expect one more ECB rate cut by the end of the year, most likely in December. (Reporting by Rae Wee Editing by Shri Navaratnam)
The Star
23 minutes ago
- Business
- The Star
Oil prices rise on US trade optimism, drop in crude inventories
TOKYO: Oil prices rose on Thursday, buoyed by optimism over U.S. trade negotiations that would ease pressure on the global economy and a sharper-than-expected decline in U.S. crude inventories. Brent crude futures gained 21 cents, or 0.3%, to $68.72 a barrel by 0335 GMT. U.S. West Texas Intermediate crude futures climbed 22 cents, or 0.3%, to $65.47 per barrel. Both benchmarks were little changed on Wednesday as markets monitored developments in U.S.-European Union trade talks, following President Donald Trump's tariff deal with Japan. The agreement lowers duties on auto imports and spares Tokyo from new levies in exchange for a $550 billion package of U.S.-bound investment and loans. "Buying was driven by optimism that progress in tariff negotiations with the U.S. would help avoid a worst-case scenario," said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities. "Still, uncertainty over U.S.-China trade talks and peace negotiations between Ukraine and Russia is limiting further gains," he added, predicting WTI will likely remain range-bound between $60 and $70. Two European diplomats said on Wednesday that the EU and the U.S. are moving toward a trade deal that could include a 15% U.S. baseline tariff on EU goods and possible exemptions, potentially paving the way for another major trade agreement following the Japan deal. On the supply side, U.S. Energy Information Administration data showed U.S. crude inventories fell last week by 3.2 million barrels to 419 million barrels, exceeding analysts' expectations in a Reuters poll for a 1.6 million-barrel draw. Gasoline stocks also fell by 1.7 million barrels to 231.1 million barrels, nearly double expectations for a 908,000-barrel draw. Distillate stockpiles, including diesel and heating oil, rose by 2.9 million barrels in the week to 109.9 million barrels - still near their lowest seasonal level since 1996, ANZ analysts said in a note. "This suggests demand over the northern hemisphere summer has been relatively strong," ANZ said. Meanwhile, geopolitical tensions remained in focus. Russia and Ukraine held peace talks in Istanbul on Wednesday, discussing further prisoner swaps, though the two sides remain far apart on ceasefire terms and a possible meeting of their leaders. Separately, foreign oil tankers were temporarily barred from loading at Russia's main Black Sea ports due to new regulations, two industry sources said on Wednesday, effectively halting exports from Kazakhstan through a consortium partly owned by U.S. energy majors. The U.S. energy secretary said on Tuesday that the U.S. would consider sanctioning Russian oil to end the war in Ukraine. Meanwhile, the EU on Friday agreed its 18th sanctions package against Russia, lowering the price cap for Russian crude. - Reuters
