2025-06-30 21:39

WASHINGTON, June 30 (Reuters) - Coal used to make steel got a break in the latest version of President Donald Trump's tax bill, a subsidy that could be worth hundreds of millions of dollars over 10 years for a fuel that is mostly exported to countries including China. In April, Trump signed executive orders that directed Chris Wright, the energy secretary and former fracking CEO, to determine whether metallurgical, or met, coal is a "critical mineral" which he did in May. Sign up here. In the latest version of Trump's so-called One Big Beautiful Bill that the Senate released over the weekend, met coal can claim an advanced manufacturing production tax credit, available for critical minerals, that would pay 2.5% of costs for the fuel. Sonia Aggarwal, CEO of Energy Innovation, a non-profit group, called allowing met coal to get the credit insane, as it could harm efforts to move to fuels that are less carbon-intensive. The subsidy would "send hundreds of millions of taxpayer dollars to China to subsidize dirty steel," Aggarwal said in a post on X. Robbie Orvis, a director of analysis at Energy Innovation, estimated that the credit could be worth $300 million to met coal producers sending coal to China over ten years and said the subsidy could help China compete with U.S.-made steel. Giving met coal the critical mineral classification, typically reserved for minerals needed for high-tech defense systems, could also set the table for Trump's use of emergency powers to raise production. Conor Bernstein, a spokesperson for the National Mining Association, said the bill supports U.S. jobs, manufacturing and the economy. "Providing incentives to spur steel-making coal production accomplishes each of those objectives." The Metallurgical Coal Producers Association of West Virginia did not immediately respond to requests for comment about how the tax credit would benefit producers. West Virginia, one of the top U.S. mining states, has suffered several met coal layoffs in recent months hitting hundreds of miners. In local media, Ben Beakes, the president of the West Virginia met coal association, has blamed the layoffs on inflation. https://www.reuters.com/sustainability/coal-used-make-steel-gets-break-trumps-tax-bill-2025-06-30/

2025-06-30 21:39

June 30 (Reuters) - Negotiators from more than a dozen major U.S. trading partners are rushing to reach agreements with U.S. President Donald Trump's administration by a July 9 deadline to avoid import tariffs jumping to higher levels, and Trump and his team kept up the pressure on Monday. With only a limited deal with Britain completed so far, Trump has repeatedly threatened just to send a series of letters to trading partners identifying what their new tariff rate will be after the deadline, and Treasury Secretary Scott Bessent said the risk of tariffs going up next week is real. Sign up here. "We have countries that are negotiating in good faith, but they should be aware that if we can't get across the line because they are being recalcitrant, then we could spring back to the April 2 levels," Bessent said on Bloomberg Television on Monday. "I hope that won't have to happen." Just over a week remains before tariffs ranging from 10% to 50% on goods from many other countries could be imposed if those countries fail to agree on bilateral trade deals in time. Trump on April 9 put a 90-day pause on the stiff levies he had announced the previous week that sent global financial markets into a tailspin. Stocks have rallied back to record highs since then on optimism that deals will be completed on time, or the deadline perhaps extended again. Here is where some of the key negotiations stand for several U.S. trading partners: EUROPEAN UNION The European Union Trade Commissioner Maros Sefcovic is flying to Washington on July 1 to meet with his U.S. counterparts, and has welcomed draft proposals from the U.S. Progress has been opaque, but the 27-member EU has said its regulations on social media and other technology companies, much stricter than those in the U.S., are not up for negotiation. The EU, meanwhile, is open to a U.S. deal that would apply a universal 10% tariff on many of its exports, but the bloc is seeking U.S. commitments to reduce tariffs in key sectors such as pharmaceuticals, alcohol, semiconductors, and commercial aircraft, Bloomberg reported. The EU is also pushing the U.S. to implement quotas and exemptions to effectively ease Washington's 25% tariff on automobiles and auto parts, as well as its 50% tariff on steel and aluminum, the report said, citing people familiar with the matter. JAPAN Japan says it is working to reach an agreement with the U.S. while defending its national interest. Trump, meanwhile, continues to accuse Japan of "unfair" automobile trade with the U.S., making it unclear how American importers of Japanese cars might avoid tariffs of 25%. Trump has also suggested Japan should import more U.S. oil, among other goods. On Monday, Trump said Japan could be among those he sends a letter to identifying its tariff rate after he complained about import restrictions it imposes on America-grown rice. "I have great respect for Japan, they won't take our RICE, and yet they have a massive rice shortage," he said in a Truth Social post. "We'll just be sending them a letter, and we love having them as a Trading Partner for many years to come." INDIA Early optimism has faded, with India-U.S. talks stalling on disagreements over U.S. tariffs on auto components, steel and agricultural goods. Indian trade officials in Washington have said they are willing to extend their stay, with the main sticking point being on whether India is willing to ease trade protections on dairy, almonds, pistachios, walnuts, soybeans and its other agricultural products and whether the U.S. will ease tariffs on imports of Indian steel and car parts. INDONESIA Accused by some other countries of excessive red tape, Indonesia eased import licensing requirements for some goods and waived import restrictions on plastics, chemical products and other industrial raw materials on June 30, seen as a gesture of goodwill towards Trump's July 9 deadline for trade talks. Indonesia has also invited the U.S. to jointly invest in a state-owned Indonesian minerals project as part of its tariff negotiations. SOUTH KOREA Despite frequent rounds of talks and some preliminary agreements, South Korea said it would seek an extension on Trump's July 9 deadline. South Korea already imposes virtually zero tariffs on U.S. imported goods under a free-trade agreement, and so the U.S. has focused on other issues, including foreign exchange rates and defense costs, with Trump often complaining about the cost-sharing arrangement for the 28,500 U.S. troops stationed in South Korea. THAILAND With the threat of Americans having to pay 36% tariffs to import Thai goods, Thailand has projected optimism about its talks with the U.S., its largest export market. Thailand's proposals have included reducing its own tariffs, purchasing more American goods and increasing investments. BRITAIN Britain has raced ahead of other countries: as of June 30, tariffs on U.S. imports of British cars are down to 10%, down from an earlier 27.5%, and removed entirely for aircraft engines and other aerospace goods. The two countries are still negotiating tariffs on British steel and aluminum, with Britain seeking to avoid the 50% tariffs the U.S. has imposed on importing these goods from many other countries. CHINA U.S.-China talks are on a different track, with a deadline for completing a wider agreement set for August. Talks between the two have faltered on the selling of rare earth minerals and magnets to the U.S., with China suspending those exports in response to Trump's tariffs announcement in April, upending global supply chains. In late June, the U.S. said it had reached an agreement with China to resume those exports while the two economic superpowers continue to negotiate a broader trade deal. https://www.reuters.com/business/autos-transportation/where-trade-talks-stand-with-major-us-partners-ahead-tariffs-hike-deadline-2025-06-30/

2025-06-30 21:33

Phased reopening to start July 7 with Douglas, Arizona as lowest risk entry point Ports in New Mexico and Texas to reopen in coming weeks, USDA evaluates conditions CHICAGO, June 30 (Reuters) - The U.S. Department of Agriculture announced on Monday a phased reopening of cattle, bison and equine imports from Mexico following a prolonged closure over the damaging pest New World screwworm. Ports will reopen in phases as early as July 7, beginning with Douglas, Arizona, which the USDA said is the lowest risk entry point due to its location and the "long history of effective collaboration" between officials in Sonora and USDA's Animal and Plant Health Inspection Service. Sign up here. The southern U.S. border was closed to imports of the animals on May 11 after screwworm, a species of fly that has been eradicated in the U.S. for decades, had been moving northward in Mexico. Additional ports in New Mexico and Texas may be reopened in coming weeks. The pest can infest livestock and wildlife and carry maggots that burrow into the skin of living animals, causing serious and often fatal damage. As part of the country's effort to fight screwworm encroachment, the USDA announced plans on June 18 to open a sterile fly dispersal facility in Texas, and invested $21 million in updating a plant in Mexico to produce sterile flies. "We have made good progress with our counterparts in Mexico to increase vital pest surveillance efforts and have boosted sterile fly dispersal efforts," USDA Secretary Brooke Rollins said in a statement. "We are continuing our posture of increased vigilance and will not rest until we are sure this devastating pest will not harm American ranchers," she said. The port in Columbus, New Mexico, may reopen on July 14, followed by Santa Teresa, New Mexico, on July 21, Del Rio, Texas, on August 18 and Laredo, Texas, on September 15, the USDA said. The agency added that it will evaluate conditions after each reopening to ensure that the enhanced control measures are working. Mexico's government later issued a statement saying its agriculture minister, Julio Berdegue, requested some of the deadlines for reopening be accelerated and said Rollins had agreed to review them. Mexico said it will ban the movement of livestock without proof of inspection and treatment for screwworm from affected areas to central and northern Mexico starting July 7. There would also be a bilateral technical meeting on Tuesday to follow up on the agreements, Mexico's government said in its statement. https://www.reuters.com/world/americas/usda-announces-phased-reopening-mexican-cattle-imports-after-screwworm-closure-2025-06-30/

2025-06-30 21:07

NEW YORK (June 30) - TRADING DAY Making sense of the forces driving global markets Sign up here. By Lewis Krauskopf, Markets Reporter Jamie is enjoying some well-deserved time off, but the Reuters markets team will still keep you up to date on what moved markets. Today we're closing the books on a turbulent first half of 2025. Trade, which has been the propelling story for markets this year, was once again a key driver on Monday. I'd love to hear from you, so please reach out to me with comments at Lewis.Krauskopf@thomsonreuters.com , opens new tab Today's Key Market Moves Today's Key Reads Ending first half on a record high note A tumultuous first half of the year for Wall Street closed on Monday with stocks on a roll, as the S&P 500 and Nasdaq again minted records. The two indexes built on gains after ending on Friday at record highs for the first time in months. The Dow was also in striking distance of a record peak, closing about 2% from the blue-chip index's milestone. As it has for months, trade news continued to be a dominant theme for markets. The United States said it would resume trade negotiations with Canada after Ottawa halted plans to begin collecting a new digital services tax targeting U.S. technology firms just hours before it was due to start. The digital levy had caught the ire of President Trump last week, prompting the U.S. to cancel trade talks with Canada. Focus was also on a looming July 9 deadline, the end of a pause on many of Trump's harsher trade tariffs. Treasury Secretary Scott Bessent warned countries may not get extensions of that deadline, even if - as he suggested previously - they are negotiating in good faith. The dollar continued to struggle on Monday, another theme for the year so far. The greenback marked its sixth straight month of losses against a basket of major currencies and the euro hit its highest level against the dollar in nearly four years. Another first-half topic likely not going away anytime soon? Trump pressuring Federal Reserve chair Jerome Powell to lower interest rates. White House reporters were told on Monday that Trump sent a handwritten note to Powell urging him to ease rates, the latest complaint the president has levied against the central bank chief. To some extent, the pressure may be seeping into markets. Fed funds futures have indicated investors expect nearly three cuts this year, more than they did a few weeks ago. Treasury yields continued their recent descent, with the benchmark 10-year yield around 4.23%. Elsewhere in Washington, Senate Republicans were trying to get Trump's sweeping tax-cut and spending bill over the line. Trump wants his fellow Republicans to get it passed before the July 4 Independence Day holiday, but there are divisions within the party about its expected $3.3 trillion hit to the nation's debt pile. Investors also were turning attention to economic data in the holiday-shortened week, with the monthly U.S. jobs report due on Thursday. What could move markets tomorrow? Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. Trading Day is also sent by email every weekday morning. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here. https://www.reuters.com/world/americas/global-markets-trading-day-graphic-2025-06-30/

2025-06-30 21:02

S&P, Nasdaq end quarter with double-digit gains Banking shares rise after Fed's stress test Indexes up: Dow 0.63%, S&P 0.52%, Nasdaq 0.48% NEW YORK, June 30 (Reuters) - The S&P 500 and Nasdaq reached record closing highs on Monday, capping their best quarter in over a year as hopes for trade deals and possible rate cuts eased investor uncertainty. Both indexes ended the quarter with double-digit gains. The S&P 500 gained 10.57% during the period, the Nasdaq rose 17.75%, and the Dow climbed 4.98%. The Russell 2000 Small Cap index rose 8.28% in the quarter. Sign up here. Still, the three main indexes posted their weakest first-half performances since 2022, as the uncertainty around trade policy has kept investors wary during the year, with tensions peaking after President Donald Trump disclosed widespread tariffs on April 2. Trade deals with China and the UK have fueled optimism that an all-out global trade war can be minimized, with hopes for more deals to be reached before Trump's July 9 trade deadline. The end of the quarter was also influenced by managers tweaking their portfolios to look more attractive at quarter-end. "Animal spirits seem to have taken hold here," said Roy Behren, co-president of Westchester Capital management fund. "It is also quite common for the last couple of days of a quarter to see strength because of the window dressing." On Sunday, Canada scrapped its digital services tax targeting U.S. tech firms, just hours before it was due to take effect, in a bid to advance stalled trade negotiations with the United States. But U.S. Treasury Secretary Scott Bessent warned on Monday that countries could still face sharply higher tariffs on July 9 even if they are negotiating in good faith, and any potential extensions will be up to Trump. Meanwhile, U.S. Senate Republicans will try to pass Trump's sweeping tax-cut and spending bill, despite divisions within the party about its expected $3.3 trillion hit to the $36.2 trillion national debt. Trump wants the bill passed before the July 4 Independence Day holiday. Key economic data releases this week include monthly non-farm payrolls and the Institute for Supply Management's survey on manufacturing and services sectors for June. Several U.S. central bank officials including Federal Reserve Chair Jerome Powell are scheduled to speak later this week. A raft of soft economic data and expectations that Trump will replace Powell with someone dovish have pushed up bets of rate cuts from the Fed this year. On Monday, nine of the 11 S&P indexes closed up. The Dow Jones Industrial Average (.DJI) , opens new tab rose 275.50 points, or 0.63%, to 44,094.77, the S&P 500 (.SPX) , opens new tab gained 31.88 points, or 0.52%, to 6,204.95 and the Nasdaq Composite (.IXIC) , opens new tab gained 96.28 points, or 0.48%, to 20,369.73. Shares of big U.S. banks rose after most cleared the Federal Reserve's annual "stress test," paving the way for billions in stock buybacks and dividends. Leading the S&P 500 were Hewlett Packard Enterprise (HPE.N) , opens new tab, up 11.1 %, First Solar (FSLR.O) , opens new tab up 8.8 %,and Juniper Networks (JNPR.N) , opens new tab up 8.45 %. "The current rally was driven by few heavyweight stocks that drove indexes up, giving the market a sense of optimism despite rising deficit and unresolved policy issues," said Cole Smead, CEO and portfolio manager of Smead Capital Management. "The stock market doesn't seem to care at all, people think this party is going to go on forever," he said. "I think this game is over. It's just a matter of when and how bad it gets." Volume on U.S. exchanges was 17.12 billion shares, compared with the 18.23 billion average for the full session over the last 20 trading days. https://www.reuters.com/business/sp-500-nasdaq-futures-climb-record-highs-trade-optimism-2025-06-30/

2025-06-30 20:50

SAO PAULO/MONTREAL, June 30 (Reuters) - Brazil's energy minister on Monday said a UN decision to recognize the environmental benefits of multicropping in producing Sustainable Aviation Fuel (SAF) was a victory for the South American country, where farmers often grow more than one crop on the same land. The celebrations in Brazil follow reports earlier this month from Reuters which revealed that, according to two sources, the United States was planning to object to the recommendation during a review by the International Civil Aviation Organization's (ICAO) 36-member council. Sign up here. "This victory at the ICAO is further proof that Brazil is the great leader in the global energy transition, and we are leading with sustainable, fair and inclusive solutions," Brazil's Minister of Mines and Energy, Alexandre Silveira, said in a statement. The ICAO took the decision to recognize the benefits of multicropping for producing SAF on Friday June 27, according to Brazil's government. The ICAO was not immediately available to comment. The U.S. State Department declined to comment. In March, State Department spokesperson Tammy Bruce said the recommendation would penalize U.S. producers and give Brazil unfair advantages over the rest of the world, saying it would award a lower carbon score to multicropping, or farming when two or more crops like corn and soy are grown on the same land, a common practice Brazil. https://www.reuters.com/sustainability/brazil-celebrates-un-recognition-environmental-gains-multicropping-jet-fuel-2025-06-30/