Trump’s trade deals aren’t just about tariffs
As dozens of countries race to reach trade deals with the U.S. ahead of a Thursday deadline, President Trump has embraced a strategy that goes beyond the usual focus on markets and deficits: He’s demanding multibillion-dollar investments in the U.S.
The president’s tactics echo his “Art of the Deal” approach. He is using economic leverage to essentially force trading partners to show him the money or face astronomical tariffs, my colleague Alan Rappeport writes from Washington.
To trade experts, the commitments raise the question of whether Trump is negotiating with trading partners or trade hostages. Here are a few examples.
| To secure a lower tariff rate in its deal, South Korea agreed to make $350 billion in investments in the U.S. and buy $100 billion of liquefied natural gas.The E.U indicated that it would buy $750 billion of American energy and that its companies were poised to invest at least $600 billion.Japan said it would establish a $550 billion fund for investments in the U.S. |
Trade experts cautioned that focusing on the eye-popping investment figures might be premature. Tariffs are easier to enforce than investment and purchase commitments, and their vague nature suggests that countries might be looking for creative ways to escape Trump’s tariffs. Some of the pledges appear too big to be true, and many of them lack specifics.
More tariff news:
| India: The foreign ministry said Trump’s threat of additional tariffs was “unjustified and unreasonable” and vowed to “take all necessary measures” to safeguard India’s interests. Malaysia: The country’s solar panel industry, which was decimated by tariffs under the Biden administration, provides a warning for the region. Switzerland: The country said it was surprised to be hit with a 39 percent tariff and announced it would present Trump with a “more attractive offer” to reduce the levy. |
A huge pay package for Musk
Tesla said yesterday that it had granted Elon Musk roughly $29 billion worth of stock to help retain the billionaire chief executive after a judge struck down his previous multibillion-dollar pay package.
The compensation deal amounts to an extraordinary raise for Musk as Tesla sales and profits fall. The company is losing market share, in part because of Musk’s involvement in right-wing politics, which has alienated many of the liberal car buyers who are likely to buy electric vehicles.
Details: Musk could tap the new shares after two years at Tesla. With them, he would own nearly 16 percent of Tesla, a stake that would be worth over $150 billion based on yesterday’s stock price.
In other tech news: Artificial intelligence has ushered in a new era of “hard tech” in Silicon Valley.
| Africans travel through Yemen for work in Saudi Arabia. Hamza Abdullah Mohammed/iStock, via Getty Images |
More than 140 migrants feared dead in boat disaster
At least 74 African migrants were still missing yesterday after their boat capsized off the coast of Yemen, the U.N. migration agency said. Search-and-rescue operations were continuing, but worries grew that the disaster might have left more than 140 dead.
The vessel capsized along a heavily traveled but treacherous route for Africans traveling to find work in the Gulf states to the north. Overcrowding and a lack of safety equipment most likely played a part in the disaster.
| MORE TOP NEWS |
| After an Iranian missile strike in Bat Yam, Israel, in June. Avishag Shaar-Yashuv for The New York Times |
| Israel: A group of former security chiefs joined a growing number of Israelis calling for an end to the war in Gaza. But Prime Minister Benjamin Netanyahu has squandered an opportunity to halt the fighting, our Jerusalem bureau chief writes. Arms: Russia said it would stop abiding by a defunct treaty against the use of intermediate-range missiles. The U.S. has long accused Russia of violating the pact. Lebanon: After its recent war with Israel, Hezbollah is balking at demands to surrender what is left of its weapons. Space: The acting administrator of NASA has issued a directive to fast-track efforts to put a nuclear reactor on the moon. Russia: Satellite photos showed that last week’s earthquake damaged a Russian nuclear submarine base. Autos: Lyft is expected to start using Chinese self-driving electric cars in Germany and Britain next year. Ukraine: Steve Witkoff, Trump’s envoy for peace missions, may travel to Russia to push the Kremlin for a deal. El Salvador: Lawmakers approved constitutional changes that will allow President Nayib Bukele to stay in power indefinitely. Why now?New Zealand: A woman was arrested in connection with a toddler who was found alive in a suitcase in a bus luggage compartment. |
| SPORTS NEWS |
| Cricket: The Athletic breaks down England vs. India, perhaps the greatest Test series in 20 years. Soccer: American owners of Premier League clubs are facing a unique set of challenges. Formula One: Lewis Hamilton is struggling in his first half-season as a Ferrari driver. Will there be a reset? |
| MORNING READ |
Over many years, Ray Malone, an Australian businessman, collected suits of armor, bonsai trees, preserved insects, antique chinoiserie cabinets and many other decorative objects.
So he built a house, just east of Melbourne, where he could enjoy his fascinating finds every day. Explore it here.
| CONVERSATION STARTERS |
| Taste test: Times Cooking journalists weighed whether cola actually tastes better with cane sugar. Authentic trattoria: To find the best Roman food, visitors should head away from the city center. Letting go: Is your wardrobe stuck in the past? Our chief fashion critic has thoughts. Only in N.Y.C.: Robert De Niro’s new studio highlights his ambition to shoot films in New York. |
| ARTS AND IDEAS |
Her break dancing flopped. Then came the musical.
Audiences at this year’s Edinburgh Festival Fringe are dancing along to “Breaking: The Musical,” by the Australian comedian Steph Broadbridge. The story is remarkably similar to that of Rachael Gunn, the Australian break dancer known as Raygun, whose unconventional routines at the Paris Olympics scored zero points and inspired mockery and memes.
Gunn tried to shut down the musical, saying that it would damage her brand. She and Broadbridge eventually reached a legal agreement, and the result was a protagonist called Spraygun. Here are more highlights and photos from the Fringe.
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Cook: This new recipe for chickpea spinach salad can be a meal, a side or a snack.
