EU ‘prepared to impose countermeasures’ after Trump doubles steel tariffs to 50%

 EU ‘prepared to impose countermeasures’ 

after Trump doubles steel tariffs to 50%

#The European Union criticized U.S. President Donald Trump’s move to hike tariffs on steel imports, saying it “adds further uncertainty to the global economy.”

#Trump announced Friday he was doubling tariffs on steel imports to 50% from 25%.

#An EU spokesperson said it is “prepared to impose countermeasures, including in response to the latest U.S. tariff increase.”

#“If no mutually acceptable solution is reached, both existing and additional EU measures will automatically take effect on 14 July—or earlier, if circumstances require,” the spokesperson said.

international desk: The European Union on Saturday criticized President Donald Trump’s move to double tariffs on steel imports, warning that it “undermines” efforts to reach a “negotiated solution” in the ongoing trade war.

“We strongly regret the announced increase of U.S. tariffs on steel imports from 25% to 50%,” an EU spokesperson said in a statement to NBC News.

“This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic,” the spoThe spokesperson added that the EU is “prepared to impose countermeasures, including in response to the latest U.S. tariff increase.”  https://www.profitableratecpm.com/fk4wwc0e?key=d48eba2276af6288b01c741241b792bb

The United Steelworkers union (USW) also criticized Trump’s announcement and said it is a “direct attack on Canadian industries and workers.”

“Thousands of Canadian jobs are on the line and communities that rely on steel and aluminum are being put at risk,” Marty Warren, United Steelworkers National Director for Canada, said in a statement.

“Canada needs to respond immediately and decisively to defend workers.”

Trump on Friday announced that he planned on doubling tariffs on steel imports to 50% from 25%, increasing the pressure on manufacturers dependent on industrial metals for production.

The new import duties are set to go into effect June 4.

His announcement, made at a rally at U.S. Steel in Pennsylvania, came after the president signaled earlier this month that he would approve a controversial deal between Nippon Steel and U.S. Steel.

Trump highlighted an “agreement” between Nippon and U.S. Steel during the Friday rally, but said that the deal was not yet final. https://www.profitableratecpm.com/fk4wwc0e?key=d48eba2276af6288b01c741241b792bb

He said that there will be no layoffs and “no outsourcing whatsoever” due to the deal.

The EU, which said that it had paused its countermeasures against the U.S. on April 14 “to allow time and space” for negotiations, said it is prepared to instate those measures “if no mutually acceptable solution is reached.”

“The European Commission is currently finalizing consultations on expanded countermeasures,” the spokesperson said. “If no mutually acceptable solution is reached, both existing and additional EU measures will automatically take effect on 14 July — or earlier, if circumstances require.”

The Trump administration’s tariff plan hit a snag this week after the U.S. Court of International Trade halted nearly all of Trump’s country-specific tariffs on the grounds that he had exceeded his authority.

The court’s order to cancel the tariffs was swiftly paused, at least for now, by an appeals court.

Despite the pause, the ruling has thrown a wrench into the administration’s broader trade strategy, which relies on the threat of high tariffs to create leverage and force countries to renegotiate their trade deals with the U.S.kesperson continued.

How UnitedHealthcare became the face of America’s health insurance frustrations

we desk : It took six months, countless hours on hold and intervention from state regulators before Sue Cover says she finally resolved an over $1,000 billing dispute with UnitedHealthcare in 2023.

Cover, 46, said she was overbilled for emergency room visits for her and her son, along with a standard ultrasound. While Cover said her family would eventually have been able to pay the sum, she said it would have been a financial strain on them. 

Cover, a San Diego benefits advocate, said she had conversations with UnitedHealthcare that “felt like a circular dance.” Cover said she picked through dense policy language and fielded frequent calls from creditors. She said the experience felt designed to exhaust patients into submission. More video Link : https://t.ly/AXT4K

“It sometimes took my entire day of just sitting on the phone, being on hold with the hospital or the insurance company,” Cover said. 

Cover’s experience is familiar to many Americans. And it embodies rising public furor toward insurers and in particular UnitedHealthcare, the largest private health insurer in the U.S., which has become the poster child for problems with the U.S. insurance industry and the nation’s sprawling health-care system. 

The company and other insurers have faced backlash from patients who say they were denied necessary care, providers who say they are buried in red tape and lawmakers who say they are alarmed by its vast influence. More video Link : https://t.ly/AXT4K

UnitedHealthcare in a statement said it is working with Cover’s provider to “understand the facts of these claims.” The company said it is “unfortunate that CNBC rushed to publish this story without allowing us and the provider adequate time to review.” CNBC provided the company several days to review Cover’s situation before publication.

Andrew Witty, CEO of UnitedHealthcare’s company, UnitedHealth Group, stepped down earlier this month for what the company called “personal reasons.” Witty had led the company through the thick of public and investor blowback. The insurer also pulled its 2025 earnings guidance this month, partly due to rising medical costs, it said.

UnitedHealth Group  is by far the biggest company in the insurance industry by market cap, worth nearly $275 billion. It controls an estimated 15% of the U.S. health insurance market, serving more than 29 million Americans, according to a 2024 report from the American Medical Association. Meanwhile, competitors Elevance Health  and CVS Health control an estimated 12% of the market each. 

It’s no surprise that a company with such a wide reach faces public blowback. But the personal and financial sensitivity of health care makes the venom directed at UnitedHealth unique, some experts told CNBC. More video Link : https://t.ly/AXT4K

Shares of UnitedHealth Group are down about 40% this year following a string of setbacks for the company, despite a temporary reprieve sparked in part by share purchases by company insiders. In the last month alone, UnitedHealth Group has lost nearly $300 billion of its $600 billion market cap following Witty’s exit, the company’s rough first-quarter earnings and a reported criminal probe into possible Medicare fraud. More video Link : https://t.ly/AXT4K

In a statement about the investigation, UnitedHealth Group said, “We stand by the integrity of our Medicare Advantage program.”

Over the years, UnitedHealthcare and other insurers have also faced numerous patient and shareholder lawsuits and several other government investigations. More video Link : https://t.ly/AXT4K

UnitedHealth Group is also contending with the fallout from a February 2024 ransomware attack on Change Healthcare, a subsidiary that processes a significant portion of the country’s medical claims.

More recently, UnitedHealthcare became a symbol for outrage toward insurers following the fatal shooting of its CEO, Brian Thompson, in December. Thompson’s death reignited calls to reform what many advocates and lawmakers say is an opaque industry that puts profits above patients.

The problems go deeper than UnitedHealth Group: Insurers are just one piece of what some experts call a broken U.S. health-care system, where many stakeholders, including drugmakers and pharmacy benefit managers, are trying to balance patient care with making money. Still, experts emphasized that insurers’ cost-cutting tactics — from denying claims to charging higher premiums — can delay or block crucial treatment, leave patients with unexpected bills, they say, or in some cases, even mean the difference between life and death. More video Link : https://t.ly/AXT4K

In a statement, UnitedHealthcare said it is ″unfortunate that CNBC appears to be drawing broad conclusions based on a small number of anecdotes.”

 

Dow closes down 800 points as bond sell-off rattles markets

WE desk: Stocks closed down significantly on Wednesday as bond yields spiked amid deficit concerns centered on a tax cut measure under consideration in the U.S. House as part of a megabill supporting President Donald Trump's second-term agenda.

 The Dow Jones Industrial Average closed down 817 points, or 1.9%, while the S&P 500 declined 1.6%. The tech-heavy Nasdaq dropped 1.4%. More video Link : https://t.ly/AXT4K

The sell-off on Wall Street coincided with a surge in bond yields, which in turn raised the cost of U.S. borrowing and stoked investor fears about the wider impact across the economy. The 10-year Treasury yield jumped from 4.48% to 4.58%, reaching its highest level since February. The nonpartisan Congressional Budget Office on Tuesday found the tax policies backed by Trump would add $3.8 trillion to the national debt. More video Link : https://t.ly/AXT4K

In addition to extending the 2017 Trump tax cuts, the "One Big Beautiful Bill Act" contains changes to Medicaid and immigration policy, among other measures. Republican members of the House are aiming to pass the bill by Memorial Day. The bond sell-off arrives at a moment of heightened volatility in Treasury markets. Long-term bond yields soared last month in the immediate aftermath of Trump's "Liberation Day" tariffs. More video Link : https://t.ly/AXT4K

A U.S. credit downgrade at Moody's last week further roiled debt markets. More video Link : https://t.ly/AXT4K

Bond yields rise as bond prices fall. When a sell-off hits and demand for bonds dries up, it sends bond prices lower. In turn, bond yields move higher. The yield for long-term Treasury bonds helps set interest rates for a host of consumer loans, including mortgages and credit cards. When interest rates rise, businesses also face higher borrowing costs, making it less likely that firms would move forward with an office expansion or round of hiring, analysts previously told ABC News. In turn, such conditions risk an economic slowdown.

Senate clears way to block clean air standards in California, including vehicle emission rules

Senate clears way to block clean air standards in California, including vehicle emission rules

Desk Story : WASHINGTON -- Senate Republicans on Wednesday voted to establish a new precedent that will allow them to roll back vehicle emission standards in California, including a rule phasing out the sale of new gas-powered cars by 2035

The winding series of Senate procedural votes that went late into the evening could have profound implications for California’s longstanding efforts to reduce air pollution. It also established a new, narrow exception to the Senate filibuster even as Republicans have insisted that they won’t try to change Senate rules. https://t.ly/AXT4K

Democrats strongly objected to the move, delaying the votes for hours as Senate Majority Leader John Thune, R-S.D., cleared the way procedurally for Republicans to bring up three House-passed resolutions that would block the rules. The Senate could pass the resolutions later this week.

At issue are the three California rules — phasing out gas-powered cars, cutting tailpipe emissions from medium- and heavy-duty vehicles and curbing smog-forming nitrogen oxide pollution from trucks.

Republicans say the phase out of gas-powered cars, along with the other rules, is costly for consumers and manufacturers, puts pressure on the nation’s energy grid and has become a de facto nationwide electric vehicle mandate. Democrats charge that Republicans are acting at the behest of the oil and gas industry and say that California should be able to set its own standards after obtaining waivers from the Environmental Protection Agency.

Thune said this week that the waivers “go far beyond the scope Congress contemplated in the Clean Air Act” and said they “endanger consumers, our economy and our nation’s energy supply.”

Also at issue is the Senate as an institution, and longstanding filibuster rules that both parties have rolled back over the last two decades. While the Republicans’ effort is narrow, it is one of several increasingly partisan efforts to push legislation through the Senate on party-line votes.

Through the series of votes Wednesday, Republicans set precedent for the Senate to reject the state EPA waivers with a simple majority vote. They made that move even after the Senate parliamentarian agreed with the Government Accountability Office that California’s policies are not subject to the Congressional Review Act, a law that allows Congress to reject federal regulations under certain circumstances.

“Republicans tonight cross a point of no return for the Senate, expanding what this chamber can do at a majority threshold,” Senate Democratic leader Chuck Schumer said on the Senate floor as he moved to delay the votes. He called the Republicans “fair-weather institutionalists.” https://www.profitableratecpm.com/fk4wwc0e?key=d48eba2276af6288b01c741241b792bb

Both parties have made major moves to roll back the filibuster — which requires a 60-vote threshold — in recent years.

Democrats voted in 2013, under President Barack Obama, to lower the vote threshold to a simple majority for all presidential nominees, with the exception of the Supreme Court. In 2017, during President Donald Trump’s first term, Republicans rolled back the remaining filibuster rules to confirm Supreme Court Justice Neil Gorsuch, a rule that Democrats maintained in confirming Justice Ketanji Brown Jackson in 2022. That same year, Democrats unsuccessfully attempted to roll back the legislative filibuster but were thwarted by some in their own party who opposed the move.

Republicans have argued this week that they are simply reinforcing Senate rules, and federal laws, that are already in place.

“We are not talking about doing anything to erode the institutional character of the Senate; in fact, we are talking about preserving the Senate’s prerogatives," Thune said.

The votes to roll back California standards come after years of Republican efforts to block them. The Trump administration in 2019 revoked California’s ability to enforce its own emissions standards, but President Joe Biden later restored the state’s authority.

Republicans have argued that the rules effectively dictate standards for the whole country, imposing what would eventually be a nationwide electric vehicle mandate. Around a dozen states have already followed California’s lead. ttps://www.profitableratecpm.com/fk4wwc0e?key=d48eba2276af6288b01c741241b792bb

California for decades has been given the authority to adopt vehicle emissions standards that are stricter than the federal government’s. California Gov. Gavin Newsom, a Democrat, announced plans in 2020 to ban the sale of all new gas-powered vehicles within 15 years as part of an aggressive effort to lower emissions from the transportation sector. Plug-in hybrids and used gas cars could still be sold.

The Biden administration approved the state’s waiver to implement the standards in December, a month before Trump returned to office. The California rules are stricter than a Biden-era rule that tightens emissions standards but does not require sales of electric vehicles.

Biden’s EPA said in announcing the decision that opponents of the California waivers did not meet their legal burden to show how either the EV rule or a separate measure on heavy-duty vehicles was inconsistent with the Clean Air Act.

Newsom has evoked Richard Nixon and Ronald Reagan, who signed landmark environmental laws, as he has fought congressional Republicans and the Trump administration on the issue.

“The United States Senate has a choice: cede American car-industry dominance to China and clog the lungs of our children, or follow decades of precedent and uphold the clean air policies that Ronald Reagan and Richard Nixon fought so hard for,” he said this week.

Alleged victim of prison escapee speaks to ABC News: 'This guy could come back...and shoot me'

 Alleged victim of prison escapee speaks to ABC News: 'This guy could come back...and shoot me'

The person recounted the fear of possible retaliation.NEW ORLEANS -- An alleged victim of one of the 10 men who escaped last week from a county jail in New Orleans told ABC News in an exclusive interview Tuesday that he wants Orleans Parish Sheriff Susan Hutson to resign. "I would tell the sheriff to resign because she's not doing her job, not what the taxpayers are paying for," the alleged victim said.Get More Video Link: https://t.ly/UxbsM

Hutson suspended her election campaign Wednesday, saying it is just temporary. Her decision, she said, was to focus her attention on "security, accountability and public safety." The election is set for Oct. 11.

The sheriff said Tuesday the escape from the Orleans Justice Center was her "full responsibility."

"This breach happened under my leadership, and it is my responsibility to ensure it is addressed with urgency and transparency," she said in her statement Tuesday. Hutson has blamed staffing shortages, an outdated surveillance system and aging infrastructure as critical factors that created vulnerabilities in the facility, located just outside downtown New Orleans. She said $13 million in upgrades are needed "not six months from now, not in next year's budget cycle, but now."

The alleged victim told ABC News he was disappointed in local authorities, adding he did not receive official notification immediately after the prison break Friday but instead learned it from a family member who heard it on the news"I was thinking about getting out of town because this guy could come back and look for my address and come in and shoot me on the couch," he said. Get More Video Link: https://t.ly/UxbsM

The person, who asked not to be named out of safety concerns, is an alleged victim of Kendall Myles, one of the inmates who was recaptured on Friday. Myles, 20, is facing charges of attempted second-degree murder and armed robbery after authorities say he shot the victim during an alleged carjacking. The case is still open.

On Tuesday, the Orleans Parish District Attorney Jason Williams told ABC News efforts were taken to put witnesses and victims in protective custody. Williams could not specify how many due to the sensitive circumstances. Two attorneys who prosecuted some of the escaped inmates' cases have also left town with their families as a precaution, Williams said.

"The DA is supposed to let me know when he's being transferred from one place to another, and they didn't do that," the alleged victim said. "In fact, they had a press conference that night saying that they got in touch with everyone that was involved that had cases open, and I was one of them with Myles, and they never even got in contact with me," he said.Get More Video Link: https://t.ly/UxbsM

While the alleged victim wasn't initially notified of the escape, he says the DA's office later contacted him and has been keeping him abreast of relevant updates. The victim says he was not put in protective custody.

Williams told ABC News that Alison Morgado, chief of Victims Witness Support for the DA’s office, reached out to the alleged victim on Friday but the number they had on file was out of service. The DA said Morgado eventually got in touch with him and two members of his family on Monday.The alleged victim, whose case has yet to go to trial, says he has lost faith in the DA's office.Get More Video Link: https://t.ly/UxbsM

The alleged victim's case, along with other pending cases against escaped inmates, had stalled in the courts. Gov. Jeff Landry has criticized Orleans Parish DA Jason Williams over the stalled cases, with the governor attributing the delayed prosecutions as one of many factors that led to the prison break.

Williams refuted the criticism from Gov. Landry who said the DA refused too many jailhouse charges against the recent inmate escapees and allowed cases to stall in Criminal District Court.

"The governor is dead wrong," Williams told ABC News. Williams continued, "The governor suggested that we should have been able to prosecute cases coming out of the jail when we didn't have evidence. It is legally impermissible and ethically wrong to go forward with cases when we don't have evidence of guilt, and those cases would have been bounced out of court by jurors or by judges if we did not have that evidence, and we still haven't gotten it in a lot of instances, from the sheriff's office. "

Five of the 10 men have been captured. On Tuesday, Louisiana State Police took Corey Boyd, 19, into custody. He fled while being held on charges of second-degree murder, second-degree attempted murder, aggravated battery, and threatening a public official.

All five men have been transferred out of Orleans Parish and are being held at the maximum-security Louisiana State Penitentiary in Angola.

More than 200 law enforcement officers from various local, state, and federal agencies are involved in the manhunt for the remaining five fugitives.  source: ABC News

Trump confronts South Africa's president in Oval Office, pushes false claims of white genocide

we desk:President Donald Trump and South African President Cyril Ramaphosa engaged in a tense back-and-forth at the White House on Wednesday over Trump's false claims of "genocide" against white South African farmers.

In a rare scene in the Oval Office, Trump had the lights dimmed to play videos on a TV monitor he said supported his allegations. Ramaphosa appeared surprised at the ambush and at times said he hadn't seen what was being aired. The sourcing of the videos played remain unknown.

President Trump also held up what he said were news articles about violent attacks against white Afrikaner farmers.

"I don't know, all of these are articles over the last few days, death of people, death, death, death, horrible death," Trump said.

Trump claimed White South Africans were "fleeing because of the violence and the racist laws."

Ramaphosa pushed back, saying the clips of speeches Trump played "is not government policy." He and other members of the South African delegation said the speakers and their views were part of extremist fringe political groups.

"There is criminality in our country. People who do get killed, unfortunately, through criminal activity are not only white people, majority of them are Black people," Ramaphosa said.

Elon Musk, a South African native and a top adviser to the president during his second term who has also amplified false claims of "white genocide," was present for Ramaphosa's visit to the White House.

Musk was seen standing behind a couch and did not speak during the exchange between Ramaphosa and Trump.

"Elon is from South Africa. I don't want to get him involved," Trump said. "That's all I have to do. Get him into another thing. But Elon happens to be from South Africa."

"This is what Elon wanted," Trump said, chuckling.Dozens of Afrikaner refugees arrived in the U.S. last week after having their applications fast-tracked under an executive order issued by Trump in February titled, "Addressing Egregious Actions of the Republic of South Africa."

The order contends the South African government passed a law allowing it to "seize ethnic minority Afrikaners' agricultural property without compensation" in a "shocking disregard of its' citizen rights." It instructs that the U.S. will not provide aid or assistance to the nation, and that the U.S. "promote the resettlement of Afrikaner refugees."The law passed by South Africa cited by the administration aims to address land injustices established during apartheid. It states land can be expropriated in the public interest and in most cases must be subject to compensation, the amount of which must have been agreed to by the owners or approved by court. Experts say the law is comparable to similar legislation around the world regarding eminent domain.

Ramaphosa previously said that the White South Africans who are being resettled in the U.S. "do not fit the definition of a refugee" -- someone who is leaving their country out of fear of being persecuted based on race, religion, nationality or political affiliation.

Trump has been scrutinized for prioritizing Afrikaners while moving to restrict immigration from elsewhere, including from Afghanistan, Venezuela and Haiti.

Secretary of State Marco Rubio was asked to defend the administration's position while testifying before a Senate panel on Tuesday.

"I think those 49 people that came strongly felt they were persecuted, and they passed every sort of check mark that needed to be checked off," Rubio said. "The president identified it as a problem and wanted to use it as an example."

Democratic Sen. Tim Kaine of Virginia said he believed the claim there is persecution of Afrikaner farmers was "completely specious" and noted the U.S. hadn't let in Black South Africans during apartheid.

"I think that the United States has a right to allow into this country and prioritize the allowance of who they want to allow it come in," Rubio responded.The South African leader said it would take Trump "listening to the voices of South Africans" to change his view. The South African government has vehemently disputed accusations of genocide.

"I would say if there was Afrikaner farmer genocide, I can bet you these three gentlemen would not be here, including my minister of agriculture," Ramaphosa said. "He would not be with me. So, it'll take him, President Trump, listening to their stories, to their perspective."

At times, Ramaphosa sought to steer the conversation back to trade and economic investment, which he said was the "real reason for being here." But Trump continually talked about the treatment of White South Africans.

But when pressed on what he wants Ramaphosa and his government to do, Trump conceded, "I don't know."

The spokesperson for the South African president told ABC's Wang that Ramaphosa "expected" to be confronted with a "show" from President Trump.

"You saw how calm President Ramaphosa remained the whole time -- that should tell you it didn't come as a surprise. At no point did he lose his cool – he remained elegant, dignified," Magwenya said."This is sort of the opposite of apartheid. What's happening now is never reported. Nobody knows about it," he added.South Africa's presidential spokesperson, Vincent Magwenya, later told ABC News Senior White House Correspondent it was a "poor compilation of old videos" and a "complete lie."

 

Truce or not, Chinese firms are looking for alternatives to the U.S.

Truce or not, Chinese firms are looking for alternatives to the U.S.

International Desk : The intense trade war with the U.S. has left lasting scars on Chinese exporters with many looking to diversify away from the U.S., despite the temporary tariff reprieves, a private survey found.

Based on a poll of 4,500 exporters across several major economies, trade insurer Allianz Trade found that 95% of Chinese exporters surveyed are planning on, if not already, doubling down on exporting to markets outside the U.S. for their goods.  More news link : https : //rity.site/Zy4BD

The U.S.-China “decoupling” remains a likely scenario over the medium term, the survey said, as Chinese exporters look to pivot away from the U.S. and American firms accelerate efforts to shift production out of China.

An increasing number of firms surveyed are expecting a dent on export turnover this year due to the double-digit U.S. tariffs, the report said.

Even after the temporary tariff reduction following Beijing-Washington’s deal in Switzerland earlier this month, the U.S. trade-weighted tariff rate on Chinese goods remained at 39%, well above the 13% rate applied before the second Trump administration, according to Allianz Trade estimates.
The rapid de-escalation of the tariff spat has led to a large spike in U.S.-bound shipments as exporters front-load orders during the 90-day grace period, pushing up freight rates.
Chinese exporters in the coastal city of Ningbo are undeterred by the truce, and sticking with their plans to “go global”, said Tianchen Xu, senior economist at Economist Intelligence Unit.
In a recent report on a field visit to the city, which hosts China’s second largest port by cargo handled after Shanghai, Xu said Southeast Asia remained the top choice among local businesses seeking to move production overseas.
For Southeast Asia, companies show growing interests in setting up production in Indonesia, Xu said. On the other hand, perception was mixed about Vietnam, with concerns over rising costs weighing against an attractive labor force.
While the U.S. has hammered out trade deals with China and the U.K, talks with other long trading partners seem to have stalled.
Allianz Trade points out a sobering reality that global exports could see a loss of $305 billion this year on the back of the widespread trade conflicts.
In comparison, global trade hit a record $33 trillion last year, according to the United Nations Trade and Development. id/jm/usa/

Australia cuts policy rate to 2-year low as inflation concerns

Australia cuts policy rate to 2-year low as inflation concerns

continue to recede

      ·       The move takes the Reserve Bank of Australia’s policy rate to its 

               lowest level since May 2023.

     ·       Australia’s inflation has been on a downtrend. 

       ·       However, analysts, ahead of the RBA meeting, have highlighted 

          downside risks for the Australian economy.

International Desk :  Australia’s central bank cut its policy rate by 25 basis points to the lowest in two years as inflation concerns in the country continue to recede, giving room for the bank to ease monetary policy.

The Reserve Bank of Australia cut the benchmark rate to 3.85%, its lowest level since May 2023, in line with expectations from economists polled by Reuters. https://t.ly/qEfvv

While the RBA said that the upside risks to inflation had diminished “substantially,” the uncertainty over global trade policy will likely continue to weigh on the economy.

“Headline inflation is expected to increase over the second half of 2025 as temporary government subsidies to households are unwound, before returning to around the midpoint of the target range later in the forecast period,” the central bank said in its monetary policy statement.

Australia’s inflation has been on a downtrend, with the most recent headline inflation figure coming in at a four-year low of 2.4% in the first quarter of 2025. The RBA’s target range for inflation is between 2% and 3%. Read more link : https://t.ly/qEfvv

However, the central bank cautioned that household consumption may recover at a slower pace than previously expected, resulting in subdued growth in overall demand and a sharper deterioration in the job market.

“There is a good chance that [the RBA] will cut rates further than we are currently anticipating [in] this cycle,” Abhijit Surya, senior APAC economist at Capital Economics, said in a note.

Surya, however, believes that the bank overestimated the extent to which its economy will be hurt by the widespread trade tensions.

The Australian economy has seen somewhat of a turnaround, with the most recent GDP reading showing a 1.3% year-on-year expansion in the fourth quarter and marking its first expansion since September 2023. Read more link : https://t.ly/A6474

However, analysts, ahead of the RBA meeting, have highlighted downside risks for the Australian economy due to global trade tensions and uncertainty around the domestic economy.

In a May 16 note, HSBC analysts noted that “the global economy and financial markets have had tumultuous times” since the RBA’s last meeting on April 1, including the imposition — and subsequent suspension — of U.S. President Donald Trump’s “Liberation Day” tariffs.

The analysts forecasted a “modest negative growth impact” on the country, and said that the market shocks are likely slightly disinflationary for Australia.

This is due to weaker expected global growth and trade diversion of manufactured goods from China into non-U.S. markets, including Australia.

Carl Ang, Fixed Income Research Analyst at MFS Investment Management, also noted in a May 15 note that downside risks and uncertainty around Australia’s economic outlook have increased substantially, due to “Liberation Day” and global trade policies. Read more link : https://t.ly/A6474

This will likely prompt a “tangibly dovish pivot from the RBA,” he said, forecasting that the central bank will reach a terminal rate of 3.1% in early 2026.

we/jm/21 may 2025

 

 

Why Walmart decided to say it would raise prices — and risk Trump’s fury

 Why Walmart decided to say it would raise prices — and risk Trump’s fury

*Walmart’s announcement on Thursday that it will hike some prices due to tariffs came at a risk — and led to a critical social media post by President Donald Trump.

*The big-box retailer’s thinner margins, price-sensitive customers and desire to influence policymakers’ decisions may have factored into its decision to speak out, according to retail analysts.

*More companies have been speaking out about U.S. tariffs since April 9, according to  helps corporations navigate reputational risk.

Desk Report : Last month, Walmart downplayed how much President Donald Trump’s tariffs would affect its business in front of a large audience of investors. CEO Doug McMillon pointed to other challenging times that the company had weathered — like the aftermath of 9/11 — and the CEO of its international business didn’t even bring up trade during a panel with global corporate leaders.Read more link : https://t.ly/A6474 

The largest U.S. retailer struck a much different tone Thursday. On its earnings call and in CNBC interviews about its quarterly results, the company warned that higher duties on imports would soon mean higher prices for its shoppers.

“We’re pleased with the progress that’s been made by the [Trump] administration on tariffs from the levels that were announced in early April, but they’re still too high,” CFO John David Rainey told CNBC in an interview.

He added that Walmart is “wired for everyday low prices, but the magnitude of these increases is more than any retailer can absorb.”

The discounter’s remarks came with a risk considering Trump’s history of publicly attacking other companies or people perceived to oppose his agenda. Sure enough, he lashed out at Walmart in a weekend social media post, telling the company to “EAT THE TARIFFS.”

Walmart’s shift in tone about the impact of tariffs — and the back-and-forth with the White House — is the latest illustration of the delicate dance of business leaders trying to appease customers, shareholders and a notoriously transactional White House as Trump’s ever-changing trade policy roils their businesses. But the discounter’s more outspoken response also highlights an area where corporate leaders have grown more willing to publicly criticize Trump’s policy positions.

“Tariffs are really the only topic that has broken through a really silent stretch of corporate engagement,” said Joanna Piacenza, vice president of thought leadership at Gravity Research, a Washington, D.C.-based firm that helps corporations navigate reputational risk and counts Fortune 500 companies as its clients. “It is an issue that corporations, that CEOs feel comfortable speaking out on because they’re tying it to business issue. That can’t necessarily be said about other polarizing issues that are dominating the zeitgeist right now.”

Walmart responded to Trump with its own statement, echoing its commitment to maintain low prices.

“We have always worked to keep our prices as low as possible and we won’t stop,” Walmart said. “We’ll keep prices as low as we can for as long as we can given the reality of small retail margins.”

Walmart declined to comment beyond its statement. A source close to the company said Walmart’s decision to warn of higher prices was motivated by a sense of obligation to explain to customers and investors why prices would increase.Read more link : https://t.ly/A6474

While Walmart’s prices are closely watched due to its massive reach, it hasn’t been alone: other companies including Microsoft and Subaru have warned of price increases related to tariffs. But on Tuesday, Home Depot broke with that pattern, as its CFO Richard McPhail said the company plans to “generally maintain our current pricing levels across our portfolio.”

Consumers and investors will get a clearer read on how companies will handle pricing in the coming days, as Target  and Lowe’s, among others, will post first-quarter results.

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