 |
|
|
|||||
When top U.S. and Chinese officials meet in Stockholm, they are almost certain to agree to at least leaving tariffs at the current levels while working toward a meeting between their presidents later this year for a more lasting trade deal between the world’s two largest economies, analysts say.Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are set to hold talks Monday for the third time this year this round in the Swedish capital, nearly four months after President Donald Trump upset global trade with his sweeping tariff proposal, including an import tax that shot up to 145% on Chinese goods.“We have the confines of a deal with China,” Trump said Friday before leaving for Scotland.Bessent told MSNBC on Wednesday that the two countries after talks in Geneva and London have reached a “status quo,” with the U.S. taxing imported goods from China at 30% and China responding with a 10% tariff, on top of tariffs prior to the start of Trump’s second term.“Now we can move on to discussing other matters in terms of bringing the economic relationship into balance,” Bessent said. He was referring to the U.S. running a $295.5 billion trade deficit last year. The U.S. seeks an agreement that would enable it to export more to China and shift the Chinese economy more toward domestic consumer spending.The Chinese embassy in Washington said Beijing hopes “there will be more consensus and cooperation and less misperception” coming out of the talks.With an eye on a possible leaders’ summit, Stockholm could provide some answers as to the timeline and viability of that particular goal ahead of a possible meeting between Trump and Chinese leader Xi Jinping.“The meeting will be important in starting to set the stage for a fall meeting between Trump and Xi,” said Wendy Cutler, a former U.S. trade negotiator and now vice president at the Asia Society Policy Institute. “Beijing will likely insist on detailed preparations before they agree to a leaders’ meeting.”In Stockholm, the two sides are likely to focus on commercial announcements to be made at a leaders’ summit as well as agreements to address “major irritants,” such as China’s industrial overcapacity and its lack of control over chemicals used to make fentanyl, also to be announced when Xi and Trump should meet, Cutler said.Sean Stein, president of the U.S.-China Business Council, said Stockholm could be the first real opportunity for the two governments to address structural reform issues including market access in China for U.S. companies.What businesses will be seeking coming out of Stockholm would largely be “the atmosphere” how the two sides characterize the discussions. They will also look for clues about a possible leaders’ summit because any real deal will hinge on the two presidents meeting each other, he said. Fentanyl-related tariffs are likely a focus for China In Stockholm, Beijing will likely demand the removal of the 20% fentanyl-related tariff that Trump imposed earlier this year, said Sun Yun, director of the China program at the Washington-based Stimson Center.This round of the U.S.-China trade dispute began with fentanyl, when Trump in February imposed a 10% tariff on Chinese goods, citing that China failed to curb the outflow of the chemicals used to make the drug. The following month, Trump added another 10% tax for the same reason. Beijing retaliated with extra duties on some U.S. goods, including coal, liquefied natural gas, and farm products such as beef, chicken, pork and soy.In Geneva, both sides climbed down from three-digit tariffs rolled out following Trump’s “Liberation Day” tariffs in April, but the U.S. kept the 20% “fentanyl” tariffs, in addition to the 10% baseline rate to which China responded by keeping the same 10% rate on U.S. products. These across-the-board duties were unchanged when the two sides met in London a month later to negotiate over non-tariff measures such as export controls on critical products.The Chinese government has long protested that American politicians blame China for the fentanyl crisis in the U.S. but argued the root problem lies with the U.S. itself. Washington says Beijing is not doing enough to regulate precursor chemicals that flow out of China into the hands of drug dealers.In July, China placed two fentanyl ingredients under enhanced control, a move seen as in response to U.S. pressure and signaling goodwill.Gabriel Wildau, managing director at the consultancy Teneo, said he doesn’t expect any tariff to go away in Stockholm but that tariff relief could be part of a final trade deal.“It’s possible that Trump would cancel the 20% tariff that he has explicitly linked with fentanyl, but I would expect the final tariff level on China to be at least as high as the 15-20% rate contained in the recent deals with Japan, Indonesia, Vietnam,” Wildau said. U.S. wants China to dump less, buy less oil from Russia and Iran China’s industrial overcapacity is as much a headache for the United States as it is for the European Union. Even Beijing has acknowledged the problem but suggested it might be difficult to address.America’s trade imbalance with China has decreased from a peak of $418 billion in 2018, according to the Census Bureau. But China has found new markets for its goods and as the world’s dominant manufacturer ran a global trade surplus approaching $1 trillion last year somewhat larger than the size of the U.S. overall trade deficit in 2024. And China’s emergence as a manufacturer of electric vehicles and other emerging technologies has suddenly made it more of a financial and geopolitical threat for those same industries based in the U.S., Europe, Japan and South Korea.“Some enterprises, especially manufacturing enterprises, feel more deeply that China’s manufacturing capabilities are too strong, and Chinese people are too hardworking. Factories run 24 hours a day,” Chinese Premier Li Qiang said on Thursday when hosting European Commission President Ursula von der Leyen in Beijing. “Some people think this will cause some new problems in the balance of supply and demand in world production.”“We see this problem too,” Li said.Bessent also said the Stockholm talks could address Chinese purchases of Russian and Iranian oil. However, Wildau of Teneo said China could demand some U.S. security concessions in exchange, such as a reduced U.S. military presence in East Asia and scaled-back diplomatic support for Taiwan and the Philippines. This would likely face political pushback in Washington.The Stockholm talks will be “geared towards building a trade agreement based around Chinese purchase commitments and pledges of investment in the U.S. in exchange for partial relief from U.S. tariffs and export controls,” Wildau said.He doubts there will be a grand deal. Instead, he predicts “a more limited agreement based around fentanyl.”“That,” he said, “is probably the preferred outcome for China hawks in the Trump administration, who worry that an overeager Trump might offer too much to Xi.” Didi Tang and Josh Boak, Associated Press Associated Press writer Paul Wiseman contributed to this report
Category:
E-Commerce
The stock price for the EV charging company ChargePoint Holdings (NYSE: CHPT) went up dramatically this morningbut, for investors, that might not be good news. ChargePoint just implemented a measure called a reverse stock split, a move intended to artificially increase the share price of a company without actually boosting its overall value. Typically, a reverse stock split is used as an effort to prevent a company from being delisted from a stock exchange, and it often signals that said company is struggling financially. Investors are already demonstrating their wariness: As of this writing, ChargePoint stock is down more than 14% since market open this morning. Heres what to know about the companys reverse stock split: What is ChargePoint? ChargePoint Holdings is one of the largest EV charging networks in the world. The company operates more than a million chargers in the U.S. and Europe, many of which are free to use and easy to find via the companys app. In recent years, its signed partnerships with Starbucks and Airbnb and helped to electrify an entire village in Senegal. Despite these milestones, ChargePoint has been navigating a rocky financial period. It reported a net loss of $282.9 million in the fiscal year ending in January, and, on June 5, 2025, it shared that its first-quarter 2026 revenue was down 9% compared to the previous year. What is a reverse stock split? A reverse stock split happens when a company boosts the price tag of its stock by combining many shares into one. In the case of ChargePoint, the reverse split took place at a ratio of 1-for-20, meaning that the value of one share today is equal to 20 shares last week. A reverse stock split doesnt mean that the companys overall value has increasedit just means that there are now far fewer shares available, each at a higher cost. After the reverse stock split, ChargePoint investors will still own the same total value in the company, consolidated into fewer shares. The reverse split was approved by ChargePoints shareholders on July 8. Whats the point of a reverse stock split? Companies use a reverse stock split when, for a number of reasons, they need to artificially increase the price of their shares. According to a press release, ChargePoint took this measure to comply with the minimum trading price criteria for continued listing on the New York Stock Exchange (NYSE). On the NYSE, listed companies need to maintain an average closing price of at least $1 per share over 30 consecutive trading days in order to meet the exchanges trading price criteria. In July, ChargePoint consistently traded below that $1 thresholdmeaning that, without a reverse stock split, it might have been at risk of delisting. What does this mean for investors? ChargePoints decision, paired with its recently rough financials, is likely to be a red flag for investors. The stocks current plummet shows that lack of confidence playing out in real time, demonstrating that the company is in a rough spot and is taking extreme measures to prevent delisting. In the past several years, other companies including WeWork, Virgin Galactic Holdings, and Nikola have used a similar strategy to continue trading.
Category:
E-Commerce
European Union wine and spirits producers could emerge among the few winners of a EU-U.S. trade deal agreed at the weekend that some European officials consider unbalanced. The high-level agreement, which imposes a 15% baseline duty for most EU goods entering the United States, is set to include tariff exemptions for some agricultural products, still to be hammered out. Alcoholic beverages could be among those, according to trade and industry officials. “We are optimistic that in the days ahead this positive meeting and agreement will lead to a return to zero-for-zero tariffs for U.S. and EU spirits products,” Distilled Spirits Council President and CEO Chris Swonger said in a statement in response to the U.S.-EU agreement. On Monday, French Trade Minister Laurent Saint Martin also said he expected the spirits sector to be exempted from U.S. tariffs. If confirmed, an exemption would offer a lifeline to alcohol players including the world’s biggest spirits maker, Diageo, Pernod Ricard, Remy Cointreau and Campari, all of which are very exposed to vast U.S. market and whose profits have already taken a big hit as consumers spend less on drink. Shares in Pernod, Diageo and Campari initially rose in early trade. But they stood 1.3%, 0.4% and 0.3% lower by 0707 GMT. Shares in Remy fell 2.2%. Alcohol is among the EU’s top exports to the United States, worth about 9 billion euros ($10.5 billion) in 2024, according to Eurostat data, with certain products like Remy Martin cognac and champagne required to be produced in specific European regions. About one-third of all exports of Irish whiskey such as Pernod Ricard’s Jameson are destined for the United States. Earlier in July, President Donald Trump had threatened a crippling 30% tariff that some industry experts said could stop flows of certain EU goods towards the United States. The United States accounts for about 18% of exports for another exclusively French product, champagne. Of all exports of cognac from its namesake region in France, about 43% end up in the United States. LVMH owns Hennessy Cognac. Remy Cointreau, which makes more than 70% of its sales from French-made cognac, is among the alcohol makers hit hardest by tariffs. It has pegged the hit from tariffs imposed globally at about 45 million euros. For cognac makers, the U.S. tariffs represent a fresh challenge after producers of the drink managed this month to avert the threat of duties of up to around 35% from China. For Spanish and Italian wines, around 14% and 24% of total exports, respectively, are sold in the United States. Beer brewers and makers of popular ready-to-drink cocktails will, however, continue to face tariffs on imported aluminum they may use for cans. Under the EU-U.S. deal struck on Sunday, Washington will continue to impose a levy of 50% on steel and aluminum entering the United States. ($1 = 0.8518 euros) Emma Rumney and Jessica DiNapoli, Reuters
Category:
E-Commerce
All news |
||||||||||||||||||
|
||||||||||||||||||