2025-07-29 19:58

Two days of 'constructive' trade talks end in Stockholm Trump to decide whether to extend truce, US officials say China seeks reduction of US tariffs and tech export controls China aware of strong negotiating hand, analyst says Trump says he thinks he and Xi will meet by year-end STOCKHOLM, July 29 (Reuters) - U.S. and Chinese officials agreed to seek an extension of their 90-day tariff truce on Tuesday, following two days of what both sides described as constructive talks in Stockholm aimed at defusing an escalating trade war between the world's two biggest economies that threatens global growth. No major breakthroughs were announced, and U.S. officials said it was up to President Donald Trump to decide whether to extend a trade truce that expires on August 12 or potentially let tariffs shoot back up to triple-digit figures. But U.S. Treasury Secretary Scott Bessent tamped down any expectation of Trump rejecting the extension. Sign up here. "The meetings were very constructive," Bessent told reporters after the meetings wrapped up. "It's just that we haven't given the signoff." As Trump returned to Washington after visiting Scotland, where he inked a trade deal with the European Union, he said Bessent had just briefed him on the China talks. "He felt very good about the meeting, better than he felt yesterday," Trump told reporters aboard Air Force One. After months of threatening high tariffs on trading partners, Trump has secured trade pacts with the EU, Japan, Indonesia and others, but China's powerhouse economy and grip on global rare earth flows make these talks particularly complex. Both sides in May walked back from imposing triple-digit tariffs on each other in what would have amounted to a bilateral trade embargo. But global supply chains and financial markets could face renewed turmoil without an agreement. Bessent told reporters he expects to meet with Trump on Wednesday after both have returned to Washington, and the president would have the final say on any extension. Another 90-day extension is one option, U.S. Trade Representative Jamieson Greer added. "We had constructive meetings for sure, to go back with the positive report. But the extension of the pause, he'll decide," Greer said after talks at Rosenbad, the Swedish prime minister's office in central Stockholm. TRUMP SEES MEETING WITH XI BY YEAR-END Bessent said there would likely be another meeting between U.S. and Chinese officials in about 90 days, and the agreements on the flow of Chinese rare earths were becoming more refined after previous talks in Geneva and London. "There was good personal interaction being built up, good, mutual respect. I think we understand their agenda much better," he said. Underlining the stakes, the International Monetary Fund on Tuesday raised its global growth forecast but flagged a potential rebound in tariff rates as a major risk. China's top trade negotiator Li Chenggang said both sides fully recognized the importance of maintaining a stable and sound economic and trade relationship. "The Chinese and U.S. economic and trade teams will maintain active communication, exchange views on economic and trade issues in a timely manner, and continue to promote the stable and healthy development of bilateral economic and trade relations," said Li. The talks could pave the way for a meeting between Trump and Chinese President Xi Jinping later in the year, though Trump denied going out of his way to seek one and U.S. officials said the topic was not discussed. Aboard Air Force One, Trump said he thinks he will meet with Xi before the end of the year, though he did not elaborate. The Stockholm meetings also included a lengthy discussion on the U.S. and Chinese economies, with Greer and Bessent emphasizing the need for China to shift away from a state-led, export-driven manufacturing economy to one powered by increased consumer demand, which would help U.S. exports. "Cooperation between China and the United States will benefit both sides, while if they fight both will be hurt," according to a readout of the meetings from China's state news agency Xinhua. "Stable, healthy and sustainable economic and trade relations between China and the United States are not only conducive to achieving their respective development goals, but also conducive to promoting the development and stability of the world economy." CHINA VS. EU TALKS The Stockholm talks follow Trump's biggest trade deal yet with the European Union on Sunday for a 15% tariff on most EU goods exports to the United States, and a deal with Japan. That agreement has brought a measure of relief to the EU but also frustration and anger, with France denouncing the deal as a "submission" and Germany, Europe's largest economy, warning of "significant" damage. China can exercise leverage with its grip on the global market for rare earths and magnets, used in everything from military hardware to car windshield wiper motors, analysts say. Unlike the EU, it does not rely on the United States for security ties and can let trade talks play out for several more months, Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, told Reuters. "China is well aware of its strong negotiating position, as could clearly be seen in the temporary escalation observed in April," he said. "But over Europe always hangs the Damocles sword of the U.S. withdrawing its security guarantee, and that is why the EU did not escalate the situation like China did." Previous U.S.-China trade talks in Geneva and London in May and June focused on bringing U.S. and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China; and Nvidia's (NVDA.O) , opens new tab H20 AI chips and other goods halted by the United States. Among broader economic issues, Washington complains that China's state-led, export-driven model is flooding world markets with cheap goods, while Beijing says U.S. national security export controls on tech goods seek to stunt Chinese growth. Separately, China's industry minister on Tuesday met with a delegation of U.S. businesses, including Apple (AAPL.O) , opens new tab, in Beijing, and pledged to uphold fair and open market competition and provide support and services for foreign enterprises. https://www.reuters.com/world/china/us-china-tariff-truce-holds-now-us-says-trump-has-final-say-2025-07-29/

2025-07-29 19:31

Brent, WTI hit highest since June 20 US to start impose tariffs and other measures on Russia ten days from today, Trump says China could face high tariffs if Beijing continued its Russian oil purchases US crude stockpiles rose by 1.54 million barrels last week - API NEW YORK, July 29 (Reuters) - Oil prices gained more than 3% on Tuesday as President Donald Trump ramped up pressure on Russia over its war in Ukraine and on optimism that a trade war between the U.S. and its major trading partners was abating. Brent crude futures settled $2.47, or 3.53%, higher at $72.51 a barrel while U.S. West Texas Intermediate crude gained $2.50, or 3.75%, to settle at $69.21. Both contracts settled at their highest since June 20. Sign up here. On Tuesday, Trump said he would start imposing tariffs and other measures on Russia "10 days from today" if Moscow did not make progress toward ending the war in Ukraine. "We've amped it up. We have a hard deadline of 10 days," said Phil Flynn, senior analyst with Price Futures Group. "And there's a suggestion that other countries are going to join us." Also on Tuesday, U.S. Treasury Secretary Scott Bessent said he had told Chinese officials that, given U.S. secondary tariff legislation on sanctioned Russian oil, China could face high tariffs if Beijing continued its Russian oil purchases. Bessent was speaking after two days of bilateral talks aimed at resolving longstanding economic disputes and stepping back from an escalating trade war between the world's two biggest economies. Also supporting oil prices, the trade agreement between the U.S. and the European Union, while imposing a 15% import tariff on most EU goods, sidestepped a full-blown trade war between the two major allies that would have rippled across nearly a third of global trade and dimmed the outlook for fuel demand. "There is definitely some optimism around the trade deals," said Bob Yawger, director of energy futures at Mizuho. "It's not perfect, especially for the Europeans, but it is better than it could have been by a long shot." The agreement also calls for $750 billion of EU purchases of U.S. energy over the next three years, which analysts say the bloc has virtually no chance of meeting, while European companies are to invest $600 billion in the U.S. over Trump's term. In the U.S., crude stockpiles rose by 1.54 million barrels last week, market sources said, citing American Petroleum Institute figures on Tuesday. U.S. Energy Information Administration is due to release weekly inventory data on Wednesday. Market participants also await the outcome of the U.S. Federal Reserve policy meeting on Tuesday and Wednesday. The Fed is widely expected to hold rates steady but could signal a dovish tilt due to signs of cooling inflation, said Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova. https://www.reuters.com/business/energy/oil-prices-rally-us-pressure-russia-trade-deal-optimism-2025-07-29/

2025-07-29 19:22

BRASILIA, July 29 (Reuters) - Brazil is planning relief measures for companies impacted heavily by steeper U.S. tariffs set to take effect in August, Finance Minister Fernando Haddad said on Tuesday. Speaking to CNN Brasil, Haddad said the plan, which will be reviewed by President Luiz Inacio Lula da Silva, includes steps to ensure companies have the confidence to maintain their investments. Sign up here. He denied, however, that the plan includes tax exemptions for the affected companies. Earlier on Tuesday, Ports and Airports Minister Silvio Costa Filho said the government would support planemaker Embraer (EMBR3.SA) , opens new tab, citing a potential additional credit line for the company. Crude oil, coffee, orange juice, beef, and aircraft - mainly from Embraer - are among Brazil's top exports to the United States. Haddad said the government still lacks clarity on what exactly will come from the U.S. starting on August 1, the date U.S. President Donald Trump has set to hike tariffs on Brazilian imports to the U.S. to 50% from the current 10%. The minister said Brazil could see a positive surprise in food inflation due to the tariffs' impact on sectors such as beef and fruit, noting that domestic prices appear to be falling as a result of increased supply in the local market. Haddad also said Latin America's largest economy cannot make the "symmetrical mistake" of retaliating in the same areas targeted by the U.S. tariffs, which he said would amount to responding in kind and ultimately punishing Brazilian consumers. "I cannot anticipate decisions that have not been made," he said, when asked whether taxing big tech companies was among the retaliation measures under consideration. https://www.reuters.com/business/aerospace-defense/brazil-is-planning-relief-measures-firms-hit-by-us-tariffs-says-minister-2025-07-29/

2025-07-29 19:14

BRASILIA, July 29 (Reuters) - Brazil's government has asked the U.S. to exclude food products and Embraer's (EMBR3.SA) , opens new tab aircraft from the 50% tariff it plans to impose on Brazilian goods starting August 1, a source familiar with the matter told Reuters on Tuesday. The request was the main topic of recent discussions between Brazilian and U.S. officials, the source said, including three calls between Brazil's Vice President and Trade Minister Geraldo Alckmin and U.S. Commerce Secretary Howard Lutnick in recent days. Sign up here. Newspaper Folha de S.Paulo first reported the request on Monday. The press office of Brazil's Development and Trade Ministry, which is headed by Alckmin, denied the report, saying the government is working to suspend the tariffs across all sectors. But a Brazilian official, speaking on condition of anonymity to discuss the sensitive topic, acknowledged that the government had some priorities that it could not make public because of a confidentiality clause in the negotiations. It also wants to avoid the perception that it is trading off some sectors for others, the source said. But the same person added that some sectors needed to be prioritized in the talks due to the severity of the impact in certain areas. Embraer, the world's No. 3 planemaker after Airbus (AIR.PA) , opens new tab and Boeing (BA.N) , opens new tab, is currently the government's top concern, with dozens of pending deliveries to U.S. airlines. It has said a 50% tariff could trigger order cancellations, deferred deliveries and job cuts, hammering its revenue like the pandemic did. Ports and Airports Minister Silvio Costa Filho said the government would do "everything within its power to help Embraer," hinting at potentially providing the planemaker with credit lines. In addition to aircraft, the U.S. is also a large buyer of Brazilian food products, such as coffee and orange juice. Trump's tariff plans could devastate Brazil's citrus belt, where factories are already scaling back production and orange farmers are considering leaving fruit to rot due to low prices. Tariffs could also effectively halt the flow of Brazilian coffee to the U.S. https://www.reuters.com/business/autos-transportation/brazil-asks-us-spare-food-products-embraer-planes-50-tariff-source-says-2025-07-29/

2025-07-29 19:08

WASHINGTON, July 29 (Reuters) - Union Pacific's (UNP.N) , opens new tabproposed purchase of smaller rival rail operator Norfolk Southern (NSC.N) , opens new tab will need to be approved by the Surface Transportation Board in Washington, an independent federal agency that oversees competition and other areas of importance in the rail industry. The $85 billion deal announced on Tuesday would create the nation's first coast-to-coast freight rail operator and reshape the movement of goods from grains to autos across the U.S., which are issues of focus for the board. Sign up here. Below are details of the board and what it will examine for the Union Pacific deal. What is the Surface Transportation Board? Created in 1996, the agency reviews railroad mergers, rates, service issues and big construction projects. It replaced the Interstate Commerce Commission, which was established in 1887. STB chairman Patrick Fuchs has said he wants the agency to update the board's regulatory framework to improve competition and reduce regulatory barriers. The board rarely rejects mergers outright, but in 2021 it rejected Canadian National's (CNR.TO) , opens new tab plan to place Kansas City Southern in a temporary "voting trust" that would have allowed Kansas City Southern shareholders to receive the deal's consideration without having to wait for full regulatory approval. That, and a higher bid from another Canadian railroad, helped end Canadian National's bid. What is the process for a railroad merger? Approval could easily take a year or more. Applicants first file a notice saying they intend to apply for a merger approval. The application for the merger is then filed three to six months after that. The STB then will decide if it is complete or not, before opening for public comments and responses for 90 days. It could then spend another year, hold a hearing, and get rebuttals and additional filings. Once the evidence is closed, the board will typically take another 90 days to issue a written opinion that generally includes an oversight period. The Attorney General also has authority to weigh in on large railroad mergers, giving the Justice Department a potential say in the merger. What does the board usually recommend for a rail merger? The STB's approval of the acquisition of Kansas City Southern Railway Company by Canadian Pacific Railway Limited came after a seven-day hearing and included an unprecedented seven-year oversight period and contained many conditions to address environmental impacts, preserve competition, protect railroad workers, and promote efficient passenger rail. What factors will the Board look at for the Union Pacific deal? The deal is the first to be considered under rules adopted in 2001 that will "substantially increase the burden on applicants to demonstrate that a proposed transaction would be in the public interest," and would require them to show how the deal will increase competition in key areas. The board will also look at how shippers of products view the deal and its impact on unions. The largest U.S. rail union, the International Association of Sheet Metal, Air, Rail and Transportation Workers, said it intends to oppose the Union Pacific deal in proceedings before the Surface Transportation Board on Tuesday. It fears the deal could reduce worker safety and job security, and downgrade service quality. https://www.reuters.com/sustainability/boards-policy-regulation/union-pacific-deal-buy-us-rail-rival-faces-lengthy-review-2025-07-29/

2025-07-29 18:47

Q2 copper production down, byproducts rise Analysts praise lower mining costs US copper tariffs a growth opportunity, group says Shares up in midday trading MEXICO CITY, July 29 (Reuters) - Mining and transportation conglomerate Grupo Mexico reported net profit rose 10% in the second quarter, helped by lower mining costs and a good performance from its copper byproducts business even as copper production edged down. Net profit for the group, a leading copper producer, came in at $1.23 billion from revenues that fell 4% to $4.24 billion, according to a filing dated late Monday, the latter above a $4.22 billion estimate of analysts polled by LSEG. Sign up here. Earnings before interest, taxes, depreciation, and amortization for the three months through end June rose 1.4% to $2.36 billion. Analysts polled by LSEG had expected EBITDA to land at $2.22 billion. Grupo Mexico, controlled by billionaire German Larrea, ranks among the world's largest copper producers by volume. At midday in Mexico City, its shares were trading up 1.3%. It maintained forecasts for an expected annual output of 1.08 million metric tons of copper, as output of the red metal over the quarter reached 267,325 tons, 1.3% less than the same period a year earlier, due to lower output at its Buenavista mine in Mexico's northern Sonora state. Although copper sales fell 2.9% from a year earlier, sales of molybdenum - a metal used to strengthen steel and speed petroleum refining - along with zinc and silver, rose. The mining division's cash cost for its primary metal, meanwhile, fell 10% from a year earlier, hitting $0.93 per pound of copper versus an average price of $4.55 per pound. Analysts at JPMorgan pointed to "a strategic decision to prioritize zinc and silver production at Buenavista Zinc, impacting copper production," and noted that Grupo Mexico had touted "the lowest cash costs in the copper industry, benefiting from higher byproduct credits." Byproduct credits refer to revenue generated from secondary metals extracted alongside a miner's main product. Santander analysts highlighted the lower metal extraction costs net of byproducts. "Grupo Mexico's balance sheet remains strong," they said. 'OPPORTUNITY TO INVEST' Earlier this month, U.S. President Donald Trump announced a 50% tariff on copper shipments starting August 1 in a bid to promote domestic development. The U.S., however, depends on imports for nearly half of its refined copper needs, and homegrown projects often take years to get off the ground. Chile, Canada and Mexico are currently its main suppliers. "There is an opportunity to invest up to $6.2 billion in the reopening and expansion of projects that align with the new mining and industrial policies of President Trump's administration," Grupo Mexico said in a report. It said it could expand production at its Ray and Silver Bell copper mines as well as reopen its Hayden smelter, all run by U.S. subsidiary Asarco, in Arizona. These proposals follow years of negotiations with local unionized workers. Construction of Grupo Mexico's Tia Maria project in southern Peru is progressing as planned, it added, and should launch in 2027. Sales at Grupo Mexico's transport division slid due largely to foreign exchange effects, the firm said, while its infrastructure arm was hit by the suspension of four platform projects on the part of state oil producer Pemex (PEMX.UL). https://www.reuters.com/world/americas/mining-giant-grupo-mexico-reports-profit-bump-copper-costs-shrink-2025-07-29/