International Trade and World Market

Subterms

    More stories

    • 150 Shares179 Views

      in Elections

      Trump Says Canada and Mexico Tariffs Will Go Into Effect Next Week

      by

      Tariffs on imports from Canada and Mexico would go into effect on March 4 “as scheduled,” President Trump said on Thursday morning, claiming that those countries were still not doing enough to stop the flow of drugs into the United States.China will also face an additional 10 percent tariff next week, on top of the 10 percent he imposed earlier this month, the president wrote in a post on Truth Social.“Drugs are still pouring into our Country from Mexico and Canada at very high and unacceptable levels,” he said. “A large percentage of these Drugs, much of them in the form of Fentanyl, are made in, and supplied by, China.” He added that the levies were necessary until the flow of drugs “stops, or is seriously limited.”In an effort to stem the flow of migrants and drugs, Mr. Trump threatened to impose tariffs on all products from Canada, Mexico and China in early February. But after Mexico and Canada promised measures like sending more troops to the border and, in the case of Canada, appointing a “fentanyl czar,” Mr. Trump paused their tariffs for one month.He moved ahead with imposing a 10 percent tariff on all products from China, on top of those already in place, which prompted China to retaliate with its own tariffs on American goods.The post Thursday appeared to be an attempt by Mr. Trump to clarify his plans, after his remarks at the White House on Wednesday sowed confusion about whether the tariffs had been delayed.When asked about tariffs on Canada and Mexico on Wednesday, Mr. Trump said that they would proceed — but mentioned April 2, which is when he has said another batch of tariffs on various countries, which he has called reciprocal tariffs, would go into effect.Some investors interpreted those remarks as a sign the president meant to continue delaying the tariffs related to drugs and migrants, and the value of the peso and the Canadian dollar increased. But a White House official on Wednesday clarified that the April 2 date referred to other tariffs, not those on Canada and Mexico.“The April Second Reciprocal Tariff date will remain in full force and effect,” Mr. Trump wrote Thursday. More

    • 100 Shares129 Views

      in Elections

      Can the Federal Reserve Look Past Trump’s Tariffs?

      by

      Top officials are grappling with how to handle potential price increases caused by the administration’s policies.As President Trump’s efforts to restructure the global trade system with expansive tariffs begin to take shape, one question continues to dog officials at the Federal Reserve: How will these policies impact the central bank’s plans to lower interest rates?One influential Fed governor made clear on Monday that he did not expect Mr. Trump’s policies to derail the Fed’s efforts to get inflation under control, suggesting instead that fresh interest rate cuts are still in play this year.“My baseline view is that any imposition of tariffs will only modestly increase prices and in a nonpersistent manner,” Christopher J. Waller, the official, said in remarks at an event in Australia Monday evening. “So I favor looking through these effects when setting monetary policy to the best of our ability.”Economists are concerned that tariffs, which are essentially taxes on American consumers, will increase prices in the United States, at least temporarily, and over time slow economic growth.Mr. Waller acknowledged that the economic impact of the tariffs could be larger than anticipated depending on how they are structured and later put in place. But he suggested that any uptick in prices from tariffs could be blunted by other policies, which could have “positive supply effects and put downward pressure on inflation.”Mr. Waller’s views matter given that he is one of the seven officials who make up the Board of Governors and votes at every policy meeting.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

    • 138 Shares179 Views

      in Elections

      Japan’s Economy Recovered In Second Half But Barely Grew in 2024

      by

      Though it recovered in the second half of the year, Japan’s economy barely grew in 2024 as a depreciated yen fueled inflation and strained households.For decades in Japan, it was accepted as gospel: A weak currency makes companies more competitive and bolsters the economy.Part of that promise came true last year: As the yen tumbled to a 37-year low against the dollar, big brands like Toyota Motor reported the highest profits in Japanese history. Stocks soared to record highs.Yet for the majority of Japanese households, the weakened yen has done little more than drive up the costs of basic living expenses, such as food and electricity. Figures released Monday showed that while Japan’s economy picked up pace in the second half of 2024, its inflation-adjusted growth rate for the full year slowed to 0.1 percent. That was down from 1.5 percent the prior year.Attempting to stimulate exports by weakening a currency has long been a policy tool for countries seeking economic growth: President Trump has said he wants a weaker dollar to help American manufacturing. Japan provides an example of what can happen when a depreciated currency, even if it helps exports, crushes consumer purchasing power by worsening inflation.“In economics, they teach us that everything has a benefit and a cost, and it’s about asking which is greater,” said Richard Katz, an economist who focuses on Japan. Of the yen trading at around 153 to the dollar, “this is clearly not the way to run a railroad,” Mr. Katz said. “It would be good to take a lesson from this.”The figures released on Monday show that household spending shrank slightly in 2024, after expanding in the previous three years. Unlike in the United States, where strong consumption helped the economy surge back after the Covid-19 pandemic, prolonged weak spending in Japan has left its real gross domestic product barely above prepandemic levels.

      .dw-chart-subhed {
      line-height: 1;
      margin-bottom: 6px;
      font-family: nyt-franklin;
      color: #121212;
      font-size: 15px;
      font-weight: 700;
      }

      Japan consumer confidence index
      Source: Cabinet Office of JapanBy The New York TimesWe 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

    • 150 Shares199 Views

      in Elections

      With Trump’s Help, Intel Could Hand Control of Chip Plants to TSMC

      by

      The Silicon Valley giant is trying to cut a deal it hopes would help it pull out of a yearslong slump.Intel, a fallen Silicon Valley icon trying to restore its reputation as America’s most prominent semiconductor company, is working with the Trump administration on a plan to turn over the operation of its chip-making plants to a giant Taiwanese rival.Over the past few months, Frank Yeary, the interim executive chairman of Intel, has spoken with administration officials and leaders of Taiwan Semiconductor Manufacturing Company about a deal that would separate Intel’s ailing manufacturing business from its semiconductor design and product business, according to four people with knowledge of the plan, who spoke on the condition of anonymity.TSMC, which produces an estimated 90 percent of the world’s most advanced semiconductors, would assume control of Intel’s manufacturing business and take a majority stake in the business alongside a consortium of investors that could include private equity firms and other tech companies, the four people said.The Trump administration has encouraged TSMC to do the deal. Howard Lutnick, President Trump’s nominee for commerce secretary, has been involved in the conversations and considers them one of the most consequential challenges of his new job, two of the people familiar with the discussions said.Intel is the only American-owned maker of advanced logic chips and has been at the forefront of U.S. efforts to rev up domestic manufacturing of semiconductors, which are a foundational technology. But Intel has struggled to compete against TSMC. Most of that company’s production is done in Taiwan, which is a strategic risk for the United States because of growing threats from the government of mainland China.Howard Lutnick has been involved in the talks as President Trump’s pick to lead the Commerce Department.Eric Lee/The New York TimesWe 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

    • 138 Shares179 Views

      in Elections

      Trump and Modi Shove Disputes Into Background in White House Visit

      by

      Hours after President Trump paved the way for upending the United States’ trade relationship with India with broad “reciprocal” tariffs, he and Prime Minister Narendra Modi presented a united front during a news conference on Thursday at the White House.Mr. Modi became the latest head of state to seek to placate an increasingly power-flexing Mr. Trump by trying to accommodate his demands — even as Mr. Trump’s promised tariffs hung over the White House meeting. Mr. Modi heaped praise on Mr. Trump, using his motto “Make America Great Again” in English, despite mostly speaking through a translator, and applying the motto to India. “Make India Great Again,” Mr. Modi crowed.The warm greetings also extended to Elon Musk, the constant Trump companion barreling through the federal government as the head of an initiative to reshape and cut down the federal government: The two had a meeting and photo op. Mr. Musk, the wealthiest man in the world, owns a number of companies, including Starlink, a high-speed internet service, that have sought to make an entry in India.All the flattery concealed a number of tensions between the two nations, including on two of Mr. Trump’s signature issues, trade and immigration. Mr. Trump hinted at the biggest thorn when he said at the news conference that the United States had a nearly $100 billion trade deficit with India, though he inflated the number — in 2024, the figure was nearly $50 billion.Just hours earlier, Mr. Trump had directed his advisers to devise new tariff levels for countries around the world that take into account a range of trade barriers and other economic approaches adopted by America’s trading partners. India is among the nations that could face particularly significant consequences from the tariffs.At the news conference, Mr. Trump said that he had toyed with that idea during his first term, and noted that he could not get India to lower tariffs against the United States then. Now, “we’re just going to say, ‘whatever you charge, we charge,’” Mr. Trump said.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

    • 150 Shares129 Views

      in Elections

      Vance, in First Foreign Speech, Tells Europe That U.S. Will Dominate A.I.

      by

      Speaking in Paris at an artificial intelligence summit, the vice president gave an America First vision of the technology — with the U.S. dominating the chips, the software and the rules.Vice President JD Vance told European and Asian leaders in Paris on Tuesday that the Trump Administration was adopting an aggressive, America First approach to the race to dominate all the building blocks of artificial intelligence, and warned Europeans to dismantle regulations and get aboard with Washington.On his first foreign trip since taking office, Mr. Vance used his opening address at an A.I. summit meeting hosted by France and India to describe his vision of a coming era of American technological domination. Europe, he said, would be forced to chose between using American-designed and manufactured technology or siding with authoritarian competitors — a not-very-veiled reference to China — who would exploit the technology to their detriment.“The Trump administration will ensure that the most powerful A.I. systems are built in the U.S. with American design and manufactured chips,” he said, quickly adding that “just because we are the leader doesn’t mean we want to or need to go it alone.”But he said that for Europe to become what he clearly envisions as a junior partner, it must eliminate much of its digital regulatory structure — and much of its policing of the internet for what its governments define as disinformation.For Mr. Vance, who is on a weeklong tour that will take him next to the Munich Security Conference, Europe’s premier meeting of leaders, foreign and defense ministers and others, the speech was clearly intended as a warning shot. It largely silenced the hall in a wing of the Grand Palais in the center of Paris. Leaders accustomed to talking about “guardrails” for emerging artificial intelligence applications and “equity” to assure the technology is available and comfortable for underserved populations heard none of those phrases from Mr. Vance.He spoke only hours after President Trump put new 25 percent tariffs on foreign steel, essentially negating trade agreements with Europe and other regions. Mr. Vance’s speech, precisely composed and delivered with emphasis, seemed an indicator of the tone Mr. Trump’s national security leaders plan to take to Europe this week.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

    • 125 Shares99 Views

      in Elections

      Markets Play Down the Hit From Trump’s Latest Trade Fight

      by

      Global markets are in a wait-and-see mode as President Trump vows to slap steel and aluminum tariffs, among other levies, on trading partners.President Trump has ramped up the tariff war. This time, the markets reaction has been muted.Pete Marovich for The New York TimesHope you enjoyed the Super Bowl on Sunday night, and congrats to the Philadelphia Eagles. The ads were better than the game. We’ve got a rundown below.I got into a substantive debate on Sunday with Joe Lonsdale, the venture capitalist and co-founder of Palantir, and other investors, about how carried interest is taxed. President Trump has vowed to eliminate the tax exemption, which I’ve been writing about since 2007. You can read excerpts from the debate below.The new phase of the tariff fight Get ready for the latest round of President Trump’s trade wars.On Air Force One on Sunday, en route to the Super Bowl, the president said he would impose a 25 percent levy on all steel and aluminum imports and that reciprocal tariffs on trading partners were coming.China has already retaliated against new Trump tariffs that took effect on Monday, leaving the global economy to grapple with the reality of worldwide trade battles.The latest: Beyond the metals levy — which is aimed squarely at China — Trump is also eyeing broad tariffs on Europe, Taiwan and others, as well as on industries and key commodities like copper, pharmaceuticals and semiconductors.Beijing has retaliated with $14 billion worth of tariffs against select American exports, including, coal, liquid natural gas and farm equipment, a sign that the trade war could expand quickly. “Trade and tariff wars have no winners,” Guo Jiakun, a spokesman for China’s foreign ministry, said on Monday.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

    • 50 Shares189 Views

      in Elections

      Are Trump’s Tariffs Inevitable?

      by

      World leaders and C.E.O.s are struggling to convince President-elect Donald Trump to shift his position on imposing new levies against America’s trade partners and its rivals.Advisers for Donald Trump are telling businesses to take the president-elect at his word on tariffs.Doug Mills/The New York TimesUnyielding on tariffs Investors appear largely unfazed by President-elect Donald Trump’s tough talk on tariffs, with the S&P 500 up more than 5 percent since Election Day.But world leaders and C.E.O.s are worried he could disrupt global trade and pummel profits — and feel they’re making little headway in warning him of the consequences.Companies have stepped up their lobbying to persuade Trump to go easy on tariffs, according to The Wall Street Journal. The president-elect warned last month that he would impose 25 percent levies on the country’s biggest trading partners, Canada and Mexico, if they didn’t tighten their borders and stem the flow of illegal migration to the U.S.In subsequent social media posts, he went after China and BRICS countries, too.Trump’s team is warning businesses to take him at his word on tariffs, The Journal reports. That suggests that Trump, who has called tariffs “the most beautiful word in the dictionary,” isn’t merely using tariff warnings as an opening salvo in trade negotiations.It also calls into question how much say Jamieson Greer, Scott Bessent, Howard Lutnick and Marco Rubio — Trump’s picks for trade representative, and to run the Treasury, Commerce and State departments — will have in shaping Trump’s trade policy if his mind is already made up.Trump conceded that he “can’t guarantee” tariffs won’t hit consumers hard. That’s a concern among economists and big companies such as Walmart and Costco, who fear that levies could lead to price rises. This earnings season, analysts have been peppering corporate leaders about how tariffs might affect their businesses.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