2025-10-15 20:02

USTR's Greer says China's actions were repudiation of trade agreements Treasury Secretary Bessent suggests longer US-China truce extension is possible US will act if China proves to be 'unreliable partner,' Bessent says WASHINGTON, Oct 15 (Reuters) - Top U.S. officials on Wednesday blasted China's major expansion of rare earth export controls as a threat to global supply chains, but said Beijing could still change course and avoid steps by Washington to decouple from the world's second-largest economy. U.S. Trade Representative Jamieson Greer told a press conference that China's new export restrictions were a "global supply-chain power grab" and the U.S. and its allies would not accept the restrictions. However, Greer and Treasury Secretary Scott Bessent also stressed that Washington did not want to escalate the conflict, which has roiled financial markets and sent U.S.-China relations into a tailspin. Sign up here. As of Tuesday night, U.S. President Donald Trump was still expecting to meet with Chinese President Xi Jinping in South Korea later this month, Bessent said. Greer said China has not yet implemented the revised regulatory system for rare earths and could still back away, just as the U.S. had not implemented a retaliatory 100% increase in tariffs on Chinese imports. "These are drafted, or in draft, so it's quite real, but our expectation is that they won't implement this and that we'll be able to be back to where we were a week ago where we had the tariff levels we've agreed to and we have the flow of rare earths that we agreed to," Greer said. Neither official would discuss possible outcomes for negotiations aimed at averting the restrictions and U.S. retaliation, which includes a threat by Trump to increase tariffs on Chinese imports by an additional 100%. The two sides have maintained lower tariffs and continued Chinese rare earth flows under a delicate, six-month truce that has been repeatedly extended for 90 days at a time. Bessent suggested a longer extension was possible. "We are currently in a 90-day roll on the tariffs, so is it possible that we could go for a longer roll in return for a delay? Perhaps, but all that's going to be negotiated in the coming weeks before the leaders meet in Korea," he said. TRADE WAR CLOUDS OUTLOOK Their comments came hours after the U.S. and China rolled out tit-for-tat port fees , opens new tab on each other's ships, opening a new front in their bitter trade fight. Escalation of U.S.-China trade tensions overshadowed the International Monetary Fund and World Bank meetings in Washington. In its World Economic Outlook released on Tuesday, the IMF had upgraded its global growth forecast in part due to the superpowers' recent detente. Japanese Finance Minister Katsunobu Kato said he expressed "strong concern" over China's expansion of rare earth export controls in a meeting with his G7 counterparts in Washington on Wednesday. "I told my counterparts the G7 must work together and respond strongly against China," Kato told reporters after the meeting. "I also said if our response leads to a spiral of retaliatory measures, that could have an adverse impact on global markets," he added. Kato said he was not aware of any G7 plan to issue a joint communique. He said the group did discuss China's export curbs and a possible response, but did not reveal details. Bessent said U.S. and Chinese officials were meeting on the sidelines of the IMF-World Bank gathering to arrange the Trump-Xi meeting, adding that it was the level of trust between the two leaders that had prevented escalation of the tariffs in the past. Greer and Bessent, who have met personally with senior Chinese officials four times in four different European cities in recent months, called China's actions a "clear repudiation" of prior U.S.-China agreements. UNRELIABLE SUPPLIER? The U.S. does not want to economically decouple from China, but would have to take action if Beijing proved to be an unreliable supplier, Bessent said, noting that Chinese officials recently told U.S. auto companies that a slowdown in shipments of rare earth magnets was "probably something" to do with a holiday. "Not only is China fueling Russia's war (in Ukraine), but China's actions have once again demonstrated the risk of being dependent on them, on rare earths and for that matter, anything," Bessent said, adding, "If China wants to be an unreliable partner to the world, then the world will have to decouple." He said Washington had further measures it could deploy, including export controls, if Beijing proceeded, and was also ready to tariff China over its purchases of Russian oil, as long as European partners joined in. The U.S. has slapped additional tariffs on India over its smaller purchases of Russian oil, but has refrained for now from taking action against China. "While there are substantial actions we can take, we'd rather not. I believe China's open to discussion and I am optimistic that this can be de-escalated," Bessent said. The U.S. would also produce photographs supplied by the Ukrainian government that showed Chinese parts were used in Russian drones operating in Ukraine, Bessent said through a spokesperson. Earlier on Wednesday, he told a CNBC event that China had clearly intended to take action "all along," rejecting Beijing's claim that the actions were a response to U.S. actions, including the new U.S. port fees. Bessent said a senior Chinese trade official had threatened as early as August to "unleash chaos on the global system" if the U.S. went ahead with the port fee increases. He named the official as Li Chenggang, China's chief trade negotiator and a subordinate of Vice Premier He Lifeng, who has participated in all the U.S.-China talks. https://www.reuters.com/world/china/us-officials-blast-chinas-actions-rare-earths-urge-beijing-back-down-2025-10-15/

2025-10-15 19:54

WASHINGTON, Oct 15 (Reuters) - The head of a U.S. airline trade group urged an end to the 15-day government shutdown, citing concerns about rising pressure faced by air traffic controllers working without pay. "It's got to stop like now, because every day that goes by, the pressures get higher, the risks get higher," Chris Sununu, CEO of Airlines for America, a major trade group representing carriers American Airlines (AAL.O) , opens new tab, Delta Air Lines (DAL.N) , opens new tab and United Airlines (UAL.O) , opens new tab, said in an interview. "You're getting closer and closer to those air traffic controllers just feeling financial pressures." Sign up here. Aviation groups are growing more worried about the potential impact of a longer government shutdown after mounting sick calls by controllers have resulted in thousands of delays since the shutdown began. The Air Line Pilots Association and National Air Traffic Controllers Association have both called for a quick end to the shutdown. More than 13,000 air traffic controllers and 50,000 Transportation Security Administration officers received a partial paycheck in recent days and will not get paid later this month if the standoff is not resolved. Sununu, a former New Hampshire governor, said things could worsen. "I think it'll really hit ahead, probably about a week and a half from now, when that first zero paycheck comes," Sununu said. "Most people can survive a couple but after three weeks, that just puts real strain on the system." Sununu wants a continuing resolution to reopen the government but acknowledged the need for a healthcare debate sought by Democrats. "I don't care about the politics. I just care about the easiest way to make sure the system has resilience," Sununu said. "If the system comes to a screeching halt for whatever reason, that's felt on a worldwide scale. ... Hopefully they'll realize it before we get there." In 2019, during a 35-day shutdown, the number of absences by controllers and TSA officers rose as workers missed paychecks, extending checkpoint wait times at some airports. The Federal Aviation Administration was forced to slow air traffic in New York, which put pressure on lawmakers to quickly end the standoff. https://www.reuters.com/world/us/us-airline-group-urges-end-government-shutdown-citing-aviation-risks-2025-10-15/

2025-10-15 18:43

Hungary has maintained reliance on Russian energy Hungarian foreign minister in Moscow as NATO meets in Brussels Hungary expects to keep up oil imports from Russia in 2026 MOSCOW, Oct 15 (Reuters) - Hungary would suffer if it were cut off from Russian energy, Budapest's foreign minister said during a visit to Moscow on Wednesday, reiterating that the country would not accept outside pressure when it came to decisions on its energy supplies. Peter Szijjarto was attending the Russian Energy Week forum as NATO defence ministers met in Brussels to discuss military aid for Ukraine, underlining Budapest's differences with most other members of the alliance when it comes to dealing with Moscow. Sign up here. Hungary has maintained its reliance on Russian energy since the start of the conflict in Ukraine, prompting criticism from several European Union and NATO allies. Szijjarto told reporters in Moscow that national interest was paramount for Budapest when it came to energy supplies. "We have never been let down (by Russia). The deliveries have always arrived... Contracts were always respected. And my question is only why we should cut this relationship," Szijjarto said. Separately, he was quoted saying by Interfax news agency that Russia has supplied around 3.6 million metric tons of oil to Hungary so far this year and will export between 5 million tons, or 100,000 barrels per day, and 5.5 million tons in 2025. He also said Hungary plans to maintain that level in 2026. HUNGARY'S RIFT WITH BRUSSELS DEEPENS Hungary has pushed back against plans by the European Commission to phase out the EU's imports of all Russian gas and liquefied natural gas by the end of 2027, deepening a rift with Brussels over relations with Moscow. Hungary signed a 15-year deal in 2021 with Russia to buy 4.5 billion cubic metres of gas annually, and increased purchases from Gazprom last year, importing some 7.5 billion cubic metres of Russian gas via the Turkstream pipeline. Hungary has received more than 6 billion cubic meters of Russian gas so far this year, Szijjarto said in a separate Facebook post on Wednesday. The country also imports most of its crude from Russia via the Druzhba pipeline, which runs through Belarus and Ukraine to Hungary and Slovakia. Croatian pipeline operator JANAF also transports crude oil to Hungarian energy group MOL's refineries. "Brussels wants us to cut one of the two (pipelines) under the phenomenon of diversification," Szijjarto said. "How can you consider having one pipeline rather than two safer? This is insane," he said. U.S. President Donald Trump said last month he would urge Hungary to stop buying Russian oil, part of a push to pressure NATO allies to cut energy ties with Moscow over its war with Ukraine. Hungarian Prime Minister Viktor Orban said dropping Russian energy would be a disaster for Hungary's economy. https://www.reuters.com/business/energy/hungary-attacks-eu-energy-policy-moscow-conference-2025-10-15/

2025-10-15 18:25

WASHINGTON, Oct 15 (Reuters) - Renewed U.S.-China trade tensions pose a "material" downside risk to the economic outlook, making it more important that the U.S. central bank cut its benchmark interest rate, Federal Reserve Governor Stephen Miran said on Wednesday. "We have to recognize that there is some difference now versus where we thought things were a week ago," before China announced new restrictions on the export of rare earth minerals critical to high-end manufacturing, Miran said at the CNBC "Invest in America Forum" in Washington. Sign up here. "There's now more downside risk than there was a week ago, and it is incumbent upon us as policymakers to recognize that should get reflected in policy ... It becomes even more urgent that we get to a more neutral place in policy quickly." He amplified those comments later at a research forum organized by Nomura, saying that if the U.S. and China follow through with threatened actions in coming weeks, "you see the risks of some material economic downside." President Donald Trump responded to China's rare earths announcement with threats to raise the tariff on Chinese imports to 100%, reviving a trade war between global economic giants that had threatened to deal a deep blow to the global economy last spring - a threat since avoided as the tariffs were dialed back and the two sides continued to negotiate. Beijing's announcement that it would cut off supplies of minerals critical to high-tech consumer and defense products makes it "important for us to consider the ways that the risks have changed in the last few days," Miran said. Treasury Secretary Scott Bessent, in remarks at the same forum, said the U.S. and China were continuing to talk. The Fed cut rates by a quarter of a percentage point last month and is expected to do so again at its October 28-29 meeting, which would push its policy rate to the 3.75%-4.00% range. Miran, on leave as the head of the White House's Council of Economic Advisers, argued for a larger half-percentage-point cut at the Fed's meeting last month, and said his outlook remains for lower inflation in coming months. He reiterated that he feels current U.S. monetary policy is too restrictive. "I'm less concerned about upside inflation in the near future, which then gives us the flexibility and the freedom" to cut rates faster, Miran said. https://www.reuters.com/world/china/us-china-trade-tensions-pose-new-risk-growth-outlook-feds-miran-tells-cnbc-2025-10-15/

2025-10-15 18:17

RIO DE JANEIRO, Oct 15 (Reuters) - Brazilian President Luiz Inacio Lula da Silva said on Wednesday that Brazil and the U.S. will hold negotiation talks on tariffs on Thursday. Lula's remarks at an event in Rio de Janeiro followed a call between him and U.S. President Donald Trump last week in which Trump designated Secretary of State Marco Rubio to continue tariff negotiations with Brazilian officials. Sign up here. Brazilian Foreign Minister Mauro Vieira and Rubio agreed on a meeting last week. Vieira and Brazilian technicians are in Washington preparing for Thursday's meeting, a source familiar with the matter told Reuters. "Trump called me and I asked to have a conversation without formalities," Lula said. "Tomorrow we will have the negotiation talk." Brazilian markets have been closely watching potential developments after Brazil's exports suffered one of the highest tariff rates imposed by the United States. Lula and Trump have been at odds for months over the trial and conviction of Brazil's former president Jair Bolsonaro. Trump hiked a tariff on many Brazilian goods from 10% to 50% because of the case, which he called a "witch hunt." During last week's call, the Brazilian president asked Trump to remove the additional 40% tariff, according to a statement from the Lula's office. https://www.reuters.com/business/brazil-us-hold-tariff-talks-thursday-says-lula-2025-10-15/

2025-10-15 18:11

Bessent to present candidates after Trump's Asia trip Trump demands lower interest rates from Fed Cook's Supreme Court case may affect Fed appointments WASHINGTON, Oct 15 (Reuters) - U.S. Treasury Secretary Scott Bessent on Wednesday said he plans to present three or four candidates to be the next leader of the Federal Reserve to President Donald Trump for him to interview sometime after the Thanksgiving holiday in late November. Bessent said at a CNBC event held on the sidelines of the International Monetary Fund and World Bank annual meetings in Washington that he has narrowed the list of candidates to succeed Fed Chair Jerome Powell, whose term expires in May, from 11 to five. Sign up here. It is a decision being closely watched around the world as it could offer Trump the potential to expand his influence over a central bank that has long guarded its independence to make decisions on monetary policy without interference by elected officials. "We will have to push out the next round to after the Asia trip," Bessent said, referring to Trump's scheduled visit to the region for two regional summits starting later this month. "So I suspect that will go on in November and then likely sometime after Thanksgiving, in December, we'll present the president with three or four candidates for him to interview." "At the end of the day, he'll take input like he always does from dozens, hundreds of people and then make a decision," Bessent said. Asked if one of the criteria to succeed Powell is a desire to lower interest rates, something Trump regularly demands, Bessent said: "One of the criteria is to have an open mind." Trump, a Republican, has routinely lashed out at Powell and the U.S. central bank more widely for not lowering interest rates at the speed and magnitude he desires. The Fed cut rates in September for the first time since Trump returned to office in January, lowering its benchmark short-term rate by a quarter percentage point to a range of 4.00% to 4.25% out of growing concerns about a softening job market, and more such reductions are expected at the two meetings remaining this year. Trump, though, has said rates should be as low as 1%, and at times has threatened to try to remove Powell for not abiding by his demands. In August he took the unprecedented step of attempting to fire Fed Governor Lisa Cook, an appointee of former President Joe Biden, over so-far unproven allegations of mortgage fraud. Cook, who denies the allegations, has sued to retain her position, and the case will be heard by the Supreme Court in January. PROCESS TO REPLACE POWELL COULD STRETCH INTO NEXT YEAR Bessent's remarks suggest the process for installing a replacement to Powell - including the required confirmation by the U.S. Senate - could stretch into next year. Powell was originally appointed to the Fed Board of Governors by former President Barack Obama, a Democrat, and elevated to Fed chair by Trump in 2018, but Trump soon soured on him. Trump has appointed three of the other seven Fed Board members, including the recent addition of his Council of Economic Advisers director Stephen Miran to fill a seat unexpectedly vacated by the departure in August of Adriana Kugler from the board. Miran's seat expires at the end of January, and Cook remains in place while the case over her firing continues, which may complicate how Bessent proceeds with selecting a successor. CNBC and others have reported that two of the five remaining candidates are currently on the board - Trump's other two appointees, Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller. Opting for one of them would allow Trump to consider reappointing Miran to a full 14-year term. But picking one of the other three reported finalists - National Economic Council Chair Kevin Hassett, former Fed Governor Kevin Warsh or investment firm BlackRock's chief investment officer for fixed income Rick Rieder - would likely require having a vacant seat, and Miran's is the only one set to expire in the near term. Powell, meanwhile, has not made clear whether he will remain on the Fed board after his term as chair expires in May. His board seat term extends to January 31, 2028, and he could choose to serve that out, although no former chair has remained since Marriner Eccles stayed on the board for three years after stepping down as chair in 1948. https://www.reuters.com/business/bessent-will-present-3-or-4-fed-chief-candidates-trump-after-thanksgiving-2025-10-15/