Trade

Trade
Trade war reignites on rare earths bans, 100% tariffs
After months of painstaking negotiations and temporary truces, the United States-China trade war has reignited with a vengeance and rare earths represent just one match in a box full of combustible issues. On Friday, October 10, President Trump declared 100% additional tariffs on Chinese goods, marking the most dramatic escalation since April's "Liberation Day" chaos, when tit-for-tat levies pushed rates to 145% and nearly sent markets into bear territory. “It has just been learned that China has taken an extraordinarily aggressive position on Trade in sending an extremely hostile letter to the World, stating that they were going to, effective November 1st, 2025, impose large-scale Export Controls on virtually every product they make, and some not even made by them,” Trump wrote on his Truth Social platform. “This affects ALL Countries, without exception, and was obviously a plan devised by them years ago. It is absolutely unheard of in International Trade, and a moral disgrace in dealing with other Nations.” Markets responded with the S&P 500 dropping 2.7%, the Nasdaq plunging 3.6%, and cryptocurrency liquidations hitting US$18 billion - the sharpest declines in six months.Escalation on repeatThe current flare-up foll
Trade
EU to add 50% steel tariffs that could hurt UK industry
The European Union plans to introduce tariffs of 50% on steel imports, with the United Kingdom saying this could heavily damage the British steel industry. The EU will match steel tariffs added by the United States. Around 78% of UK steel exports went to the E.U. in 2024. “The European steel industry was on the verge of collapse – we are protecting it so that it can invest, decarbonise, and become competitive again,” said European Commission executive vice president for prosperity and industrial strategy Stéphane Séjourné. Séjourné said 18,000 jobs in the EU’s steel sector were lost last year. “In relation to the question of tariffs or other measures, as you’d expect, we are in discussions with the EU about this, as we’re in discussions with the U.S. about it,” said U.K. Prime Minister Keir Starmer. The plan would also reduce tariff-free steel import quotas by 47% to 18.3 million tonnes per year. The EU currently caps imports of 26 steel grades, with imports above these limits subject to 25% tariffs. The new proposals are intended to bolster negotiations with the U.S. to end its 50% tariff on steel imports, The Guardian reported. “The new measures proposed by the EU represent an existential threat to our steel
Trade
US truck tariffs begin 1 November, Trump says
The United States will impose a 25% tariff on medium and heavy trucks from 1 November, according to President Donald Trump. Trump previously said in September that the U.S. planned to add tariffs on heavy trucks, alongside announcements of new tariffs on furniture, lumber, and pharmaceuticals. He has not offered details on how this would be implemented. “Beginning November 1st, 2025, all Medium and Heavy Duty Trucks coming into the United States from other Countries will be Tariffed at the Rate of 25%,” Trump wrote on Truth Social. The U.S. Chamber of Commerce had recommended against truck tariffs in May, saying the top sources of trucks are all U.S. allies. Mexico is the U.S.’ largest source of medium and heavy trucks, followed by Canada, Japan, Germany, and Finland. Trucks can currently be imported to the U.S. without tariffs if at least 64% of their value originates in North America, due to the 2018 United States-Mexico-Canada Agreement free trade pact. The U.S. also agreed to a 15% tariff on light-duty vehicles in trade agreements with the European Union and Japan earlier this year. Stellantis has lobbied the administration for an exemption to a potential truck tariff, as this could impact the medium-duty Ram
Trade
Trump unveils more tariffs on drugs, trucks and cabinets
United States President Donald Trump revealed a fresh round of tariffs late last week, targeting pharmaceuticals, heavy-duty trucks, and furniture. From 1 October, branded and patented drug imports will face a 100% levy unless manufacturers are building factories in the United States. Washington will also impose a 25% duty on all heavy-duty truck imports and 50% tariffs on kitchen and bathroom cabinets, with an additional 30% tariff on upholstered furniture set to begin next week. “The reason for this is the large scale ‘FLOODING’ of these products into the United States by other outside Countries,” Trump wrote on his Truth Social account. The measures arrive despite repeated calls from American businesses urging the White House not to expand tariffs. Generic drugs and firms with ongoing U.S. factory investments are exempt. The European Federation of Pharmaceutical Industries and Associations has pressed for “urgent discussions” to ensure patients in both the EU and U.S. are not harmed. European officials noted that exports should be protected from tariffs above 15% under a bilateral framework agreed earlier this year. The UK, which exported more than US$6 billion (A$1.91 billion) in pharmaceuticals to the U.S
Trade
US investment deal could cause crisis for South Korea
Accepting the United States’ investment demands without a currency swap could lead to a crisis for South Korea’s economy, South Korean President Lee Jae-myung has said. Under a July trade agreement, South Korea would invest US$350 billion (A$530.9 billion) in the U.S. in exchange for a lower tariff rate. The two countries have not yet implemented the deal, and are continuing to negotiate. “Without a currency swap, if we were to withdraw $350 billion in the manner that the U.S. is demanding and to invest this all in cash in the U.S., South Korea would face a situation as it had in the 1997 financial crisis,” Lee told Reuters. South Korea has suggested a foreign exchange swap line to the U.S., though Lee did not say if the U.S. was likely to agree. The $350 billion investment would include $150 billion in shipbuilding and $100 billion in liquefied natural gas. The deal would lower U.S. tariffs on South Korean goods from 25% to 15%. U.S. Commerce Secretary Howard Lutnick has said that unless South Korea accepts the deal, including the investment package, its tariff rate will continue to be 25%. “Black and white, pay the tariffs or accept the deal,” he said. Japan agreed to a similar $550 billion investment under a t

Trade
Canada and Mexico deepen ties to combat US tariffs
Canada and Mexico have created a deal to deepen ties as they vow closer cooperation on trade and security to grapple with rising economic pressure from the U.S. The agreement came after Canadian Prime Minister Mark Carney met with Mexican President Claudia Sheinbaum in Mexico to discuss economic and security ties. In a joint press conference, the leaders said they were committed to deepening their ties and maintaining their three-way trade partnership with the U.S. “Mexico and Canada will continue walking together, with mutual respect and with a certainty that cooperation is the path to overcome any challenge,” Sheinbaum said. Carney claimed that North America was the “economic envy of the world”, partly due to trade cooperation between Canada and Mexico. “I have full confidence, and so does the president [Sheinbaum], that we can find the adjustments needed to reinforce competition and competitiveness in our region,” he said. "Our agreement today will expand and deepen the partnership, so that the next 30 years hold even greater promise than the last 30 years have delivered.” This comes as both Canada and Mexico were slammed with U.S. tariffs. These tariffs include 50% on Canadian steel, 25% on some Mexican ph
Trade
US and China to continue talks in Spain
United States and Chinese officials will hold a second day of talks on Monday as the U.S. TikTok deadline looms. Current negotiations are being led by U.S. Secretary of State Scott Bessent and Chinese Vice Premier He Lifeng as they attempt to end the trade war between the economic powerhouses. In July, top officials from Beijing and Washington struck a deal to extend their tariff truce by 90 days until 10 November. Despite being in favour of TikTok being banned in his first term as president, Trump has since changed his mind and delayed the ban three times. The current deal is set to expire on 17 September, meaning if TikTok isn’t sold from its Chinese owner, ByteDance, it could face being pulled from the American app store if Trump doesn’t once again extend the deadline. Trump has suggested that he would continue to extend the deadline until a buyer for TikTok could be found after calling the security and privacy concerns the app and its Chinese parent company pose “highly overrated”. The White House also launched its official TikTok account in August this year. The current talks in Spain are supposed to lay the groundwork for a potential meeting between Trump and Chinese President Xi Jinping as soon as Octob

Trade

Trade war reignites on rare earths bans, 100% tariffs

EU to add 50% steel tariffs that could hurt UK industry

US truck tariffs begin 1 November, Trump says

Trump unveils more tariffs on drugs, trucks and cabinets

US investment deal could cause crisis for South Korea

Canada and Mexico deepen ties to combat US tariffs

US and China to continue talks in Spain