US President Donald Trump announced tariff cuts on fentanyl-related products from China, reducing them from 20% to 10%. This decision is part of an agreement reached at a summit in South Korea last October. This move aims to ease trade tensions between the world's two largest economies. Trump also announced a freeze on reciprocal tariffs imposed on Chinese goods. This freeze will remain in effect, providing some relief to companies engaged in international trade with China. This policy is expected to help ease trade tensions that have persisted for the past few years. This tariff cut will...
U.S. President Donald Trump announced on Thursday that he will impose a 35% tariff on imports from Canada starting August 1, warning that it could rise further if Canada retaliates. In a letter to Canadian Prime Minister Mark Carney, released on his social media platform, Trump also signaled plans to apply blanket tariffs of 15% to 20% on most other trade partners. The move is part of a broader escalation in his trade war, with new tariffs already targeting allies such as Japan and South Korea, as well as a 50% levy on copper. In an interview with NBC News, Trump said not all countries...
Federal Reserve Board of Governors (Fed) member Christopher Waller reiterated his argument for why the Fed should cut interest rates earlier in July. In a speech at the Dallas Fed, Waller noted that the inflationary impact of tariffs would likely be short-lived and stated that a rate cut would not be politically motivated. Fed Governor Waller is one of the favorites to replace Fed Chairman Jerome Powell in 2026. Key Highlights Tariffs raise prices once, and the central bank can anticipate that. The impact of tariffs is not zero, but it is also not large. Waller argued that a moderately...
Initial jobless claims in the US fell by 5,000 from the previous week to 227,000 on the first period of July, below market expectations of a 2,000 increase to 235,000. It was the fourth consecutive decline in initial claims to the lowest count in seven weeks, consolidating the view that the US labor market remains relatively robust to high interest rates and economic uncertainty. Still, outstanding unemployment claims rose by 10,000 to 1,965,000, the most since 2021, to solidify concerns that hiring is slowing. Initial claims filed by federal government employees, which have been under...
The impact of U.S. President Donald Trump's sweeping tariff agenda is likely to be seen in the upcoming second-quarter corporate earnings season, according to analysts at Capital Economics. Despite having largely delayed the implementation of his punishing "reciprocal" levies first unveiled in April, Trump has left a baseline 10% tariff in place, as well as heightened duties on items like steel, aluminum and autos. The effective U.S. tariff has in turn increased compared to its level at the beginning of Trump's second term earlier this year, analysts have suggested. This week, Trump has...
US President Donald Trump has threatened Latin America's largest economy, Brazil, with a 50% tariff on exports to the US. He also ordered an investigation into alleged unfair trade practices, which could lead to even higher duties. Trump set the August 1 tariff rate, far higher than the 10% duty imposed on Brazil on April 2. Brazil is the United States' 15th-largest trading partner, with total two-way trade amounting to USD 92 billion in 2024, and a rare US trade surplus of USD 7.4 billion. Brazil was one of eight countries mentioned in letters Trump posted on Wednesday, which outlined...
Asia-Pacific markets traded higher, tracking Wall Street gains overnight.
Japan's benchmark Nikkei 225 rose 0.41% after hitting a fresh record high on Thursday, while the Topix added 0.61%. South...
Both the STOXX 50 and STOXX 600 hovered around the flatline on Friday, as investors adopted a cautious stance ahead of further developments in trade talks between US President Trump and Chinese...
US President Donald Trump announced tariff cuts on fentanyl-related products from China, reducing them from 20% to 10%. This decision is part of an agreement reached at a summit in South Korea last...