2025-08-01 01:42
TOKYO, Aug 1 (Reuters) - Japan's Finance Minister Katsunobu Kato said on Friday that its authorities have been alarmed over recent foreign exchange moves, after the yen fell to four-month lows against the dollar. "As we have consistently stated, it's important for currencies to move in a stable manner reflecting fundamentals. We have been alarmed over foreign exchange movements, including those driven by speculators," Kato said at a press conference. Sign up here. The yen fell to 150.89 per dollar on Friday, the lowest since March 28. Bank of Japan Governor Kazuo Ueda said in a news conference on Thursday that current foreign exchange levels are unlikely to have an immediate major impact on its inflation outlook, a comment that currency traders perceive as the central bank's tolerance to the yen's current weakness. https://www.reuters.com/markets/asia/japan-alarmed-over-recent-fx-moves-its-finance-minister-says-2025-08-01/
2025-08-01 01:00
Mexico avoids 30% tariff on non-automotive, non-metals goods A 35% tariff on many Canadian goods Brazil hit with 50% tariff, some sectors excluded China trade deal not finalized, August 12 deadline looms July 31 (Reuters) - U.S. President Donald Trump slapped dozens of trading partners with steep tariffs ahead of a Friday trade deal deadline, including a 35% duty on many goods from Canada, 50% for Brazil, 25% for India, 20% for Taiwan and 39% for Switzerland. Trump released an executive order , opens new tab listing higher import duty rates of 10% to 41% starting in seven days for 69 trading partners as the 12:01 a.m. EDT (0401 GMT) deadline approached. Some of them had reached tariff-reducing deals and some had no opportunity to negotiate with his administration. Sign up here. The order said that goods from all other countries not listed in an annex would be subject to a 10% U.S. tariff rate. Trump's order said that some trading partners, "despite having engaged in negotiations, have offered terms that, in my judgment, do not sufficiently address imbalances in our trading relationship or have failed to align sufficiently with the United States on economic and national-security matters." Trump issued a separate order , opens new tab for Canada that raises the rate on Canadian goods subject to fentanyl-related tariffs to 35% from 25% previously, saying Canada had "failed to cooperate" in curbing fentanyl flows into the U.S.. The higher tariffs on Canadian goods contrasted sharply with Trump's decision to grant Mexico a 90-day reprieve from higher tariffs of 30% on many goods to provide more time to negotiate a broader trade pact. A U.S. official told reporters that more trade deals were yet to be announced as Trump's higher "reciprocal" tariff rates were set to take effect. "We have some deals," the official said. "And I don't want to get ahead of the President of the United States in announcing those deals." Regarding the steep tariffs on goods from Canada, the second largest U.S. trading partner after Mexico, the official said that Canadian officials "haven't shown the same level of constructiveness that we've seen from the Mexican side." The extension for Mexico avoids a 30% tariff on most Mexican non-automotive and non-metal goods compliant with the U.S.-Mexico-Canada Agreement on trade and came after a Thursday morning call between Trump and Mexican President Claudia Sheinbaum. "We avoided the tariff increase announced for tomorrow," Sheinbaum wrote in an X social media post, adding that the Trump call was "very good." Approximately 85% of U.S. imports from Mexico comply with the rules of origin outlined in the USMCA, shielding them from 25% tariffs related to fentanyl, according to Mexico's economy ministry. Trump said the U.S. would continue to levy a 50% tariff on Mexican steel, aluminum and copper and a 25% tariff on Mexican autos and on non-USMCA-compliant goods subject to tariffs related to the U.S. fentanyl crisis. "Additionally, Mexico has agreed to immediately terminate its Non Tariff Trade Barriers, of which there were many," Trump said in a Truth Social post without providing details. KOREA DEAL, INDIA DISCORD South Korea agreed on Wednesday to accept a 15% tariff on its exports to the U.S., including autos, down from a threatened 25%, as part of a deal that includes a pledge to invest $350 billion in U.S. projects to be chosen by Trump. But goods from India appeared to be headed for a 25% tariff after talks bogged down over access to India's agriculture sector, drawing a higher-rate threat from Trump that also included an unspecified penalty for India's purchases of Russian oil. Although negotiations with India were continuing, New Delhi vowed to protect the country's labor-intensive farm sector, triggering outrage from the opposition party and a slump in the rupee. Trump's rollout of higher import taxes on Friday comes amid more evidence they have begun driving up consumer goods prices. Commerce Department data released Thursday showed prices for home furnishings and durable household equipment jumped 1.3% in June, the biggest gain since March 2022, after increasing 0.6% in May. Recreational goods and vehicles prices shot up 0.9%, the most since February 2024, after being unchanged in May. Prices for clothing and footwear rose 0.4%. TOUGH QUESTIONS FROM JUDGES Trump hit Brazil on Wednesday with a steep 50% tariff as he escalated his fight with Latin America's largest economy over its prosecution of his friend and former President Jair Bolsonaro, but softened the blow by excluding sectors such as aircraft, energy and orange juice from heavier levies. The run-up to Trump's tariff deadline was unfolding as federal appeals court judges sharply questioned Trump's use of a sweeping emergency powers law to justify his sweeping tariffs of up to 50% on nearly all trading partners. Trump invoked the 1977 International Emergency Economic Powers Act to declare an emergency over the growing U.S. trade deficit and impose his "reciprocal" tariffs and a separate fentanyl emergency. The Court of International Trade ruled in May that the actions exceeded his executive authority, and questions from judges during oral arguments before the U.S. Appeals Court for the Federal Circuit in Washington indicated further skepticism. U.S. Treasury Secretary Scott Bessent said earlier that the United States believes it has the makings of a trade deal with China, but it is "not 100% done," and still needs Trump's approval. U.S. negotiators "pushed back quite a bit" over two days of trade talks with the Chinese in Stockholm this week, Bessent said in an interview with CNBC. China is facing an August 12 deadline to reach a durable tariff agreement with Trump's administration, after Beijing and Washington reached preliminary deals in May and June to end escalating tit-for-tat tariffs and a cut-off of rare earth minerals. https://www.reuters.com/world/americas/trump-hits-dozens-countries-with-steep-tariffs-including-35-canadian-goods-2025-07-31/
2025-07-31 23:56
SAO PAULO, July 31 (Reuters) - Brazilian miner Vale (VALE3.SA) , opens new tab reported on Thursday a 24% decline in its second-quarter net profit from a year earlier to $2.12 billion, while still outperforming analyst expectations. Analysts polled by LSEG had expected Vale, one of the world's biggest iron ore producers, to post a $1.44 billion net profit for the quarter ended in June. The comparative base was high, given that Vale's net profit a year ago was boosted by the divestment of its PT Vale Indonesia unit. Sign up here. The miner's revenue in the April to June period this year fell 11% compared to last year, but matched analyst expectations at $8.8 billion. Revenue declined in Vale's key iron ore segment compared to a year ago, hurt by smaller sales volumes and lower prices, but grew in both copper and nickel. The average realized price for Vale's iron ore fines was $85.1 per ton in the quarter, a drop of more than 13% from a year ago. Those lower prices contributed to a 15% drop in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), which totaled $3.39 billion. At the same time, all-in costs decreased from last year in each category - 10% in iron ore, 60% in copper and 30% in nickel - due to efficiency measures and higher output. Vale also said it spent $200 million less this quarter than a year before, keeping it on track to meet its 2025 guidance of $5.9 billion. The company also announced it obtained the preliminary license for the Bacaba copper project, intended to extend the life of the Sossego complex. As well, Vale this month started commissioning a second furnace in Onça Puma, where it aims to start nickel production in the last quarter of the year. https://www.reuters.com/business/energy/miner-vales-q2-net-profit-falls-24-outdoes-analyst-forecasts-2025-07-31/
2025-07-31 23:48
State of emergencies declared in New York, New Jersey At least 1,170 flights canceled at eight major airports Amtrak rail service halted between Philadelphia and Delaware NEW YORK, July 31 (Reuters) - New York Governor Kathy Hochul and her acting New Jersey counterpart declared states of emergency for areas facing the threat of flash floods on Thursday from heavy downpours disrupting rail and air travel along the Eastern Seaboard. The National Weather Service posted flash flood warnings along parts of the Northeast urban corridor stretching from the Washington-Baltimore region north through Philadelphia, Wilmington, Delaware, and into Newark, New Jersey, and the New York City metropolitan area. Sign up here. Severe thunderstorm watches were also in effect across much of the Interstate-95 corridor. The stormy weather appeared to be a key factor disrupting commercial air travel across the Northeast on Thursday. The eight major airports serving the region - Washington Dulles, Baltimore-Washington, Ronald Reagan Washington National, Philadelphia, Newark Liberty, LaGuardia, John F. Kennedy International and Boston Logan - accounted for the cancellation of at least 1,170 airline flights into, out of or within the U.S., according to online flight tracking service FlightAware. Passenger rail travel was also hampered, with Amtrak reporting service halted between Philadelphia and Wilmington due to severe storms causing high water to flood the tracks. A daily rainfall outlook map issued by the Weather Prediction Center put the risk of "excessive" showers capable of triggering flash floods at 40% or higher for a swath of the mid-Atlantic and Northeast that is home to 37 million people. Up to 5 inches (12.7 cm) of rain was forecast in the heaviest bands of showers expected across New York City, Long Island and the Hudson River Valley, with rainfall rates that could exceed 2 inches per hour, according to a statement from Hochul. "I am urging all New Yorkers to stay vigilant, stay informed, and use caution as we expect excessive rainfall with the potential for flash flooding," Hochul said. New Jersey was bracing for rainfall totals of 1 to 3 inches generally, with localized downpours that could produce 5 to 7 inches, acting New Jersey Governor Tahesha Way said in her declaration. She warned that the extreme rainfall could trigger landslides, rock slides and flash flooding of roadways across New Jersey, with additional hazards posed by damaging winds from thunderstorms. "Residents should remain off the roads and indoors unless absolutely necessary," Way, the lieutenant governor, said in a statement. She is temporarily serving as the state's chief executive while Governor Phil Murphy was out of the state on vacation with his family. The Weather Service attributed the storm threat to a cold front that was bringing a combination of unstable air mass and exceptional amounts of atmospheric moisture to the region. https://www.reuters.com/business/environment/heavy-downpours-flash-flooding-disrupt-travel-along-us-eastern-seaboard-2025-07-31/
2025-07-31 23:28
July 31 (Reuters) - The International Monetary Fund board on Thursday completed its first review of the $20 billion program with Argentina, approving a disbursement of approximately $2 billion. "Strong policy implementation has supported a smooth transition to a more flexible exchange rate regime, with declining inflation and continued economic growth," the IMF said in a statement, while acknowledging Argentina missed its mid-June target for net international reserves accumulation. Sign up here. The IMF staff said last week that understandings had been reached with the government on policies including safeguarding the fiscal anchor and rebuilding reserves. “This will be complemented by further actions to create a more open, resilient, and market-based economy,” the IMF staff said. In the wake of the $20 billion, 48-month deal Argentina reached with the IMF in April, the country loosened years-long controls that restricted access to foreign currency and has let the local peso fluctuate within a moving band. https://www.reuters.com/world/americas/imf-board-completes-first-argentina-program-review-approves-2-billion-2025-07-31/
2025-07-31 23:10
LONDON, Aug 1 (Reuters) - Britain said the European Union will remove tariffs on key steel products under a quota system from Friday as part of a reset of ties and a recent deal to ease trade barriers. In May, Britain agreed the most significant reset of defence and trade ties with the European Union since Brexit, which included a "bespoke arrangement" to protect UK steel exports from new EU rules and tariffs. Sign up here. Britain had said the European Commission would restore its country-specific steel quota to pre-2022 levels, but had not previously specified when this would take effect. Trade minister Jonathan Reynolds said the removal of tariffs was "yet another positive step forward for the UK steel sector" after the government intervened to save jobs at British Steel and struck a deal to avoid the highest U.S. steel tariffs. "Restoring our steel quota helps give producers the certainty they need to compete, grow, and maintain vital export relationships," he said. Britain said it could export up to 27,000 tonnes of steel to the EU each quarter without paying an extra tariff under the arrangement. Gareth Stace, director general of UK Steel, said the restoration of the quota was "excellent news", adding companies had been "plagued by problems" shipping items like support beams. Britain is yet to conclude negotiations with the United States after both sides agreed in May to work to eliminate steel tariffs on exports from Britain. British steel exports to the U.S. face tariffs of 25%, and avoided an increase to 50% thanks to its U.S. agreement, but talks to remove the tariffs have stalled due to discussions over supply chains and where British steel is "melted and poured". https://www.reuters.com/world/uk/britain-says-eu-is-removing-tariffs-steel-under-quota-2025-07-31/
