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    New Pact Would Require Ships to Cut Emissions or Pay a Fee

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    A draft global agreement sets a fee for cargo ships, which carry the vast majority of world trade, to pay for their greenhouse gas emissions.Amid the turmoil over global trade, countries around the world reached a remarkable, though modest, agreement Friday to reduce the climate pollution that comes from shipping those goods worldwide — with what is essentially a tax, no less.A draft accord reached in London under the auspices of the International Maritime Organization, a United Nations agency, would require every ship that ferries goods across the oceans to lower their greenhouse gas emissions or pay a fee.The targets fall short of what many had hoped. Still, it’s the first time a global industry would face a price on its climate pollution no matter where in the world it operates. The proceeds would be used mainly to help the industry move to cleaner fuels. It would come into effect in 2028, pending approval by country representatives, which is widely expected.The agreement marks a rare bit of international cooperation that’s all the more remarkable because it was reached even after the United States pulled out of the talks earlier in the week. No other countries followed suit.“The U.S. is just one country and that one country cannot derail this entire process,” said Faig Abbasov, shipping director for Transport and Environment, a European advocacy group that has pushed for measures to clean up the maritime industry. “This will be first binding decision that will force shipping companies to decarbonize and switch to alternative fuels.”The agreement applies to all ships, no matter whose flag they fly, including ships registered in the United States, although the vast majority of ships are flagged in other countries. It remained unclear whether or how Washington might respond to the fee agreement.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      As Trump Upends Global Trade, Europe Sees an Opportunity

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      President Trump has big ambitions for the global trading system and is using tariffs to try to rip it down and rebuild it. But the European Union is taking action after action to make sure the continent is at the center of whatever world comes next.As one of the globe’s biggest and most open economies, the E.U. has a lot on the line as the rules of trade undergo a once-in-a-generation upheaval. Its companies benefit from sending their cars, pharmaceuticals and machinery overseas. Its consumers benefit from American search engines and foreign fuels.Those high stakes aren’t lost on Europe.Ursula von der Leyen, the president of the European Commission, the E.U.’s executive arm, has spent the past several weeks on calls and in meetings with global leaders. She and her colleagues are wheeling and dealing to deepen existing trade agreements and strike new ones. They are discussing how they can reduce barriers between individual European countries.And they are talking tough on China, trying to make sure that it does not dump cheap metals and chemicals onto the European market as it loses access to American customers because of high Trump tariffs.It’s an explicit strategy, meant to leave the economic superpower stronger and less dependent on an increasingly fickle America. As Ms. von der Leyen and her colleagues regularly point out, the U.S. consumer market is big — but not the be-all-end-all.“The U.S. makes up 13 percent of global goods trade,” Maros Sefcovic, the E.U.’s trade commissioner, said in a recent speech. The goal “is to protect the remaining 87 percent and make sure that the global trade system prevails for the rest of us.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Autoworkers Union Chief Gives Trump’s Tariffs a Mixed Review

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      In an address to the U.A.W., Shawn Fain said a targeted approach could help bring jobs back to the United States, but he criticized universal duties.The head of the United Automobile Workers union voiced partial support on Thursday for the Trump administration’s tariffs, saying targeted duties on other countries could help bring some manufacturing jobs back to the United States.But the union’s president, Shawn Fain, described President Trump’s across-the-board global tariffs as “reckless.” In an address to U.A.W. members that was streamed on YouTube and other social media, he also strongly criticized the administration for firing federal workers and slashing key government agencies, and accused it of violating the civil rights of students and others.“We support use of some tariffs on automotive manufacturing and similar industries. We do not support tariffs for political games about immigration or fentanyl,” Mr. Fain said. “We do not support reckless tariffs on all countries at crazy rates.”The address appeared aimed at distancing the union leader from Mr. Trump. In previous weeks, Mr. Fain praised the White House’s tariff plans and faced some criticism for moving closer to an administration that often shows hostility to organized labor. He campaigned frequently and enthusiastically last year for former Vice President Kamala Harris, the Democratic presidential nominee, often rousing crowds by referring to Mr. Trump as a “scab.”“We are not aligning everything we do with the Trump administration,” Mr. Fain said on Thursday. “We are negotiating with the Trump administration.”Mr. Fain used the address to repeat familiar claims that free trade agreements — in particular, the North American Free Trade Agreement — allowed corporations to move U.S. factories and jobs to low-wage countries. He said some 90,000 factories in the United States closed in the last 30 years, hollowing out once thriving manufacturing cities like Flint, Mich., and Gary, Ind.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Challenge to Trump’s Tariffs Funded by Groups Linked to Charles Koch and Leonard Leo

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      Among those opposed to President Trump’s tariffs on imports from China: a legal group funded by some of the biggest names in conservative politics.Last week, a Florida business owner challenged the Trump administration’s moves in court, arguing that her company, Simplified, which makes notebooks and planners, was harmed by the dramatic trade war with China that has only deteriorated further since the lawsuit was filed.Her lawyers are from the New Civil Liberties Alliance, a libertarian-leaning nonprofit that counts among its financial backers Donors Trust, a group with ties to the billionaire Leonard A. Leo, who is a co-chairman of the Federalist Society.The Federalist Society is an influential legal group that advised Mr. Trump through the confirmation of justices he appointed to form the current conservative supermajority on the Supreme Court, though some in Mr. Trump’s circle came to believe that its leaders were out of step with the president’s political movement.Another donor to New Civil Liberties Alliance is Charles Koch, the billionaire industrialist and Republican megadonor.In what appeared to be the first tariff-related lawsuit against the Trump administration, the founder of Simplified, Emily Ley, argued that President Trump overstepped his authority in February when he first imposed new import taxes on Chinese goods. Since then, China has retaliated with its own tariffs, and Mr. Trump has escalated the fight with more levies. All Chinese imports face a minimum tariff rate of 145 percent as of Thursday, a dramatic increase.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump’s Tariff Reversal Calms Some G.O.P. Nerves, but Questions Linger

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      President Trump’s whipsawing tariff policy has prompted bipartisan alarm on Capitol Hill, where Democrats are outraged and Republicans are caught between their deep opposition to tariffs and fear of criticizing Mr. Trump.The president’s abrupt announcement on Wednesday that he would halt most of his reciprocal tariffs for 90 days just a week after announcing them allayed the immediate concerns of some G.O.P. lawmakers, many of whom rushed to praise Mr. Trump for what they characterized as deal-making mastery.But behind those statements was a deep well of nervousness among Republican lawmakers who are hearing angst from their constituents and donors about the impact of Mr. Trump’s trade moves on the financial markets and the economy. Some of them have begun signing onto measures that would end the tariffs altogether or claw back Congress’s power to block the president from imposing such levies in the future.“I’m just trying to figure out whose throat I get to choke if it’s wrong, and who I put up on a platform and thank them for the novel approach that was successful if they’re right,” Senator Thom Tillis, Republican of North Carolina, said of the sweeping tariffs on Tuesday during a hearing with Jamieson Greer, the Trump administration’s top trade official.On Wednesday, after Mr. Trump pulled back most of the tariffs but retained a 10 percent tariff rate for most countries and announced additional penalties on China, Mr. Tillis still sounded anxious. He said the move was likely to “reduce some of the escalation,” but added that there was still considerable work to be done to prevent another market meltdown.“We’ve got to get a deal before we get rid of uncertainty,” he told reporters soon after Mr. Trump announced the change in a social media post.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Southeast Asia, With Little Leverage, Seeks to Placate Trump on Trade

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      Southeast Asian leaders, their export-driven economies in peril, are trying to placate the president. “We may have to comply,” Thailand’s finance minister said.They were hit by some of President Trump’s most punishing tariffs, in one case as high as 49 percent. The new levies threatened to cripple their economies, which have prospered by making sneakers and tech goods for American consumers.So Southeast Asian countries like Cambodia and Vietnam rushed to appease Mr. Trump. They promised not to retaliate, unlike China and Europe. And they proposed to reduce or even eliminate their own tariffs on American imports.On Thursday, the region woke up to the good news that Mr. Trump had paused his “reciprocal” tariffs. The president suggested he had reversed course because of the market turmoil they had caused. Still, Southeast Asia is sticking with its conciliatory approach.In a statement on Thursday, the economic ministers of the Association of Southeast Asian Nations, known as Asean, said the 10-country bloc was “united in the opinion that retaliation is not an option.” (The ministers were in Kuala Lumpur, Malaysia, for a meeting that had been previously scheduled.)Despite Mr. Trump’s 90-day pause, the anxiety here is palpable. His tariffs, the Asean statement said, are “introducing uncertainty and undermining trust in the global trade system.” Millions of livelihoods in the region are on the line. Thailand’s finance minister, Pichai Chunhavajira, acknowledged that the White House had leverage over his nation in matters of trade.“This is how you negotiate,” Mr. Pichai said in an interview. “You start with an extreme measure and then ease your demand along the way. We may have to comply.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Stocks Jump in Asia After Trump’s Tariff Reprieve

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      Markets in Japan, South Korea and Taiwan soar after the U.S. president pauses punishing tariffs. Gains in mainland China were modest as trade hostilities heat up between Washington and Beijing.Following President Trump’s decision to pause punishing tariffs on dozens of countries, markets in Asia reacted predictably: Stocks soared in the countries that were spared.In early trading on Thursday, benchmark indexes rose more than 9 percent in Taiwan, 8 percent in Japan and 5 percent in South Korea. All three Asian economies were among the U.S. trading partners given a 90-day reprieve from Mr. Trump’s so-called reciprocal tariffs.While the U.S. allies won’t immediately face the 24 percent to 32 percent tariffs the Trump Administration had previously threatened, they will still be subject to a lower rate of 10 percent. That comes on top of 25 percent tariffs that Mr. Trump has imposed on goods including cars — a particular sore point for big auto exporters Japan and South Korea.In the United States, the reversal by Mr. Trump on Wednesday sparked the biggest one-day rally of the S&P 500 since October 2008, when stocks soared as investors anticipated central bank rate cuts in the wake of the global financial crisis.Huge Gains and Losses in One WeekModest gains or losses are the most common outcomes on S&P 500 trading days. But since last Thursday the index has had two steep drops and one of its biggest gains since 2000. More

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      Bond Sell Off Raises Questions About U.S. Safe Haven Status

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      A sharp sell-off in U.S. government bond markets has sparked fears about the growing fallout from President Trump’s sweeping tariffs and retaliation by China, the European Union and others, raising questions about what is typically seen as the safest corner for investors to take cover during times of turmoil.Yields on 10-year Treasuries — the benchmark for a wide variety of debt — shot 0.2 percentage points higher on Wednesday, to 4.45 percent, a big move in that market. Just a few days ago, it had traded below 4 percent. Yields on the 30-year bond rose significantly as well, at one point on Wednesday topping 5 percent. Borrowing costs globally have also shot higher.The sell-off comes as investors have fled riskier assets globally in what some fear has parallels to what became known as the “dash for cash” episode during the pandemic, when the Treasury market broke down. The recent moves have upended a longstanding relationship in which the U.S. government bond market serves as a safe harbor during times of stress.Volatility has surged as stock markets have plummeted amid fears that the U.S. economy is hurtling toward stagflation, in which economic growth contracts while inflation surges. The S&P 500 is now on the verge of entering a bear market, meaning it has dropped 20 percent from its recent high.“The global safe-haven status is in question,” said Priya Misra, a portfolio manager at JPMorgan Asset Management. “Disorderly moves have happened this week because there is no safe place to hide.”Scott Bessent, the U.S. Treasury secretary, sought to tamp down concerns on Wednesday, brushing off the sell-off as nothing more than investors who bought assets with borrowed money having to cover their losses.“I believe that there is nothing systemic about this — I think that it is an uncomfortable but normal deleveraging that’s going on in the bond market,” he said in an interview with Fox Business.But the moves have been significant enough to raise broader concerns about how foreign investors now perceive the United States, after Mr. Trump decided to slap onerous tariffs on nearly all of its trading partners. Some countries have sought to strike deals with the administration to lower their tariff rates. But China retaliated on Wednesday, announcing an 84 percent levy on U.S. goods after Mr. Trump raised the tariff rate on Chinese goods to 104 percent.In a social media post on Wednesday, the former U.S. Treasury secretary Lawrence H. Summers said the broader sell-off suggested a “generalized aversion to US assets in global financial markets” and warned about the possibility of a “serious financial crisis wholly induced by US government tariff policy.”“We are being treated by global financial markets like a problematic emerging market,” he wrote. More

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      Delta Warns Trump’s Trade War Could Lead to a Recession

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      Delta Air Lines on Wednesday became one of the largest American companies to warn that President Trump’s escalating trade war was weighing on its business and the global economy.In an interview with CNBC on Wednesday, Delta’s chief executive, Ed Bastian, said a recession was possible as companies pulled back spending.“Everyone’s being prepared for uncertainty,” he said, “if that continues, and we don’t get resolution soon, we will probably end up in a recession.”Airlines are highly sensitive to changes in the economy because air travel is among the first things that individuals and businesses can cut back on when they are worried about their paychecks or profits.Mr. Bastian expressed shock at the speed at which the trade tensions had taken the wind out of the economy.“We’re in uncharted, unprecedented uncertainty, when you look at what’s happened and the pivot so quickly to this self-inflicted situation,” he said.Mr. Bastian’s comments are at odds with those of the Treasury secretary, Scott Bessent, who said on Wednesday that chief executives had told him the economy was solid.In its first-quarter earnings release, Delta said it no longer expected its business to grow in the second half of the year and added that a lack of the clarity about the economy prevented it from telling investors how much money it expects to make this year.Mr. Bastian said summer bookings were in line with last year. Some customs data show a sharp decline in foreigners entering the United States. Mr. Bastian said around 80 percent of Delta’s international bookings are made in the United States. “U.S. consumers are looking to go somewhere, particularly to try to get a reprieve from all the craziness we’re going through,” he said.Delta’s shares have fallen around 40 percent this year. More