2025-07-09 19:44

Trump says he will announce 50% copper tariffs Chile, Mexico ship their copper largely to China Governments awaiting clarity on US measures Copper exporters prepared to seek new markets SANTIAGO/MEXICO CITY, July 9 (Reuters) - Top officials in Chile and Mexico said on Wednesday they could seek markets elsewhere to avoid tariffs from the Trump administration, a day after U.S. President Donald Trump said he would soon announce a 50% tariff on the red metal. Mexico and Chile export the bulk of their copper to China. Sign up here. "Chilean copper will keep finding new markets," Chilean Foreign Minister Alberto van Klaveren told a press conference, after President Gabriel Boric said earlier in the day that he had yet to hear from the U.S. and called for official communication. "Clearly these measures worry us," van Klaveren added, pointing to market uncertainty on global supply flows. "The U.S. is going to keep needing copper because the U.S. doesn't have the capacity to replace the copper it imports from Chile and other countries," he told the conference. Chile is the single biggest copper supplier to the U.S., a market that makes up about 11% of its total copper exports, and less than 7% of its refined copper exports. Boric said he was awaiting official communication from the U.S. government, including whether the tariffs would include copper cathodes, and questioned "whether this will actually be implemented or not." Chile's Mining Minister Aurora Williams told Reuters it was too early to say whether Chile would request an exemption. Copper imports account for nearly half of the metal consumed in the United States, whose government is seeking to build up domestic production. Chile is the United States' top refined copper supplier, while Mexico ranks fifth. Mexico's President Claudia Sheinbaum said in a morning press conference that Mexico could redirect the copper it typically sends to the U.S. to avoid tariffs. She noted that Mexican officials would be in Washington on Friday for previously planned talks on trade, security and immigration. "Copper is needed in many places around the world, so there are some options there," she said in her daily press conference in Mexico City. "Our responsibility is to seek the best possible negotiation with the U.S. and at the same time look for other options for national production and exports to other destinations." Copper is considered an economic bellwether commodity due to its widespread use across construction and infrastructure sectors. The news is likely to set off a scramble to ship copper into the United States before tariffs go into effect, expected by the end of July or August 1. https://www.reuters.com/world/americas/chile-mexico-brace-trump-copper-tariff-announcement-2025-07-09/

2025-07-09 18:31

MEXICO CITY, July 9 (Reuters) - The U.S. Treasury said on Wednesday it had extended a deadline to September 4 for a prohibition on certain transactions involving three Mexican financial institutions hit by sanctions last month over alleged money laundering linked to fentanyl trafficking. The actions apply to Mexico's CiBanco, Intercam Banco and Vector Casa de Bolsa, which the Treasury said were identified as "primary money laundering concerns." Sign up here. "This decision is the result of dialogue and collaboration between the Mexican government and U.S. financial authorities," Mexico's finance ministry said in a statement following the announcement. Mexico had previously balked at the sanctions, arguing that they were unilaterally applied by the U.S. without providing Mexico with any evidence to back up the money laundering claims. Since the sanctions were announced, Mexico temporarily took over the three financial firms to protect creditors and depositors. https://www.reuters.com/business/finance/us-extends-deadline-fentanyl-sanctions-three-mexican-financial-institutions-2025-07-09/

2025-07-09 15:58

WASHINGTON, July 9 (Reuters) - U.S. President Donald Trump on Wednesday called on the Federal Reserve to lower the federal benchmark interest rate by at least 3 percentage points, renewing his call for the U.S. central bank to lower rates to help reduce the cost to service the nation's debt. "Our Fed Rate is AT LEAST 3 Points too high. “Too Late” is costing the U.S. 360 Billion Dollars a Point, PER YEAR, in refinancing costs. No Inflation, COMPANIES POURING INTO AMERICA. “The hottest Country in the World!” LOWER THE RATE!!!" Trump wrote on Truth Social. Sign up here. https://www.reuters.com/world/us/trump-says-us-interest-rate-is-least-3-points-too-high-2025-07-09/

2025-07-09 15:42

LONDON, July 9 (Reuters) - The U.S. dollar's share of global currency reserves reported to the International Monetary Fund nudged lower to 57.7% in the first quarter of 2025 while the share of euro-denominated reserves gained, International Monetary Fund data showed. Shares of global currency reserves held in the greenback stood at 57.8% at the end of 2024, while the share of euros gained from 19.8% to 20.1% - their highest since late 2022, according to the IMF's Currency Composition of Official Foreign Exchange Reserves (COFER) data released on Wednesday. Sign up here. But it was the Swiss franc which saw the most dramatic increase, quadrupling its share to 0.8% of reserves by end-March - the highest level since at least 1999 when the euro was introduced - while the share of pound sterling also rose. Foreign currency markets have seen some dramatic swings since the start of the year. The dollar lost nearly 4% in the first quarter of the year as some big policy swings from the administration under U.S. President Donald Trump, especially on trade, security and the economy, roiled market confidence in the world's foremost reserve currency. The decline accelerated dramatically in the second quarter, when the dollar dropped more than 7% in the wake of Trump's introduction of sweeping tariffs on "Liberation Day" in early April - though some of those measures have been put on hold. On the flip side, the Swiss franc - widely seen as a safe haven currency - has become one of the best performing currencies this year, strengthening 14% against the dollar. While currency swings do not equate to reserve managers' willingness to hold them, the latest events have fuelled a debate on whether the U.S. dollar could be in danger of losing its status as the world's reserve currency of choice and the center point of the global monetary system. While some point to nascent signs of de-dollarisation, there is broad agreement that any such shift would be very slow. Looking at levels in claims, U.S. dollar claims did rise 1.4% quarter-on-quarter to $6.72 trillion, though that gain was outpaced by the euro's 2.6% rise to claims of $2.3 trillion, IMF data showed. https://www.reuters.com/business/dollar-cedes-ground-euro-swiss-franc-shines-global-reserves-imf-data-shows-2025-07-09/

2025-07-09 15:15

MEXICO CITY, July 9 (Reuters) - Mexico's annual inflation rate eased in June after rising for four straight months, though core prices kept climbing, fueling expectations the central bank could slow the pace of interest rate cuts, official data showed on Wednesday. Consumer prices in Mexico rose 4.32% in the year through June, according to national statistics agency INEGI, roughly in line with the 4.31% expected by economists in a Reuters poll and slowing from the 4.42% reported in the previous month. Sign up here. Mexico's central bank, also known as Banxico, has an inflation target of 3%, plus or minus one percentage point. In contrast, 12-month core inflation, often seen as a better gauge of price trends because it strips out highly volatile food and energy prices, accelerated to 4.24% from 4.06% in May, hitting its highest level since April of last year. The core inflationary pressures have stirred uncertainty regarding Banxico's future decisions on borrowing costs in Latin America's second-largest economy. "Core inflation remains sticky, with persistent upward pressure from housing, food services and a seasonal jump in airfares, likely keeping some Banxico board members uneasy," said Andres Abadia, chief Latin America economist at Pantheon Macroeconomics. The Bank of Mexico lowered its benchmark rate by 50 basis points last month, though the decision by the central bank's five-member governing board was not unanimous. In its decision, the bank's board of governors adjusted its forward guidance, dropping previous references to further 50 basis point cuts. Instead, it said it would continue to assess "additional cuts". Deputy Governor Jonathan Heath voted to hold the rate last month after previously calling for a more cautious approach until inflation shows a more sustained downward trajectory. July's inflation is expected to come in under 4%, meeting the upper end of the central bank's target range, Actinver analysts said in a note after Wednesday's inflation report. "We anticipate that the Mexican central bank could cut its benchmark rate on two more occasions this year. We project that these cuts will occur in August and September, both cuts of 25 basis points," they added. In June alone, headline consumer prices were up 0.28%, according to INEGI, while the closely watched core index stood at 0.39%, both in line with market forecasts. https://www.reuters.com/world/americas/mexicos-annual-inflation-eases-june-core-rate-climbs-2025-07-09/

2025-07-09 14:11

July 9 (Reuters) - Merck (MRK.N) , opens new tab will buy UK-based Verona Pharma for about $10 billion, the companies said on Wednesday, strengthening the U.S. firm's presence in respiratory treatments as it readies for the patent expiry of its blockbuster cancer drug. Sign up here. https://www.reuters.com/legal/transactional/merck-acquire-verona-pharma-10-billion-2025-07-09/