Friday, 11 July 2025

Trump’s Tariff Wars Turn Nasty. Pentagon Invests In Rare Earths.

Baltic Dry Index. 1465 +42             Brent Crude 68.73

Spot Gold 3332                   US 2 Year Yield 3.86 unch.  

US Federal Debt. 37.087 trillion

US GDP 30.127 trillion.

The history of government management of money has, except for a few short happy periods, been one of incessant fraud and deception.

Friedrich August von Hayek

In our new 2025 tariff war, all against all, and USA all against the Rest of the World, things took a nasty turn yesterday.

To say nothing good comes from going down this road, is great understatement.

At best, a new 2025-2026 global recession. At worst, a repeat of 1929-1932 but on massive debt steroids. War?

Below, the calm before the hurricane?

Asia-Pacific markets mostly rise after Trump hits Canada with 35% tariffs

Updated Fri, Jul 11 2025 11:45 PM EDT

Asia-Pacific markets traded mostly higher Friday after U.S. President Donald Trump announced 35% tariffs on Canada starting Aug. 1.

He also told NBC News Thursday that he plans to impose blanket tariffs of 15% or 20% on most trade partners.

“I think the tariffs have been very well-received. The stock market hit a new high today,” the president told NBC News’ “Meet the Press” moderator Kristen Welker in a phone call. 

Here’s a snapshot of how markets are faring:

Singapore’s benchmark Straits Times Index climbed to a fresh high Friday, notching its fifth consecutive day of gains.

The country’s equities climbed 0.51% to hit a fresh record of 4,096 points Thursday as of 11.33 a.m. local time, data from LSEG showed.

—Lee Ying Shan

Hong Kong, China markets open higher

Hong Kong’s Hang Seng index rose 0.93%, and the mainland’s CSI 300 index climbed 0.2% at the open.

“We are relatively optimistic about China due to its reasonable valuation, the prospect for further stimulus and its potential to catch up in AI,” UOB analysts wrote in a Thursday note.

However, the bank noted that they’ve turned more cautious recently due to the weakening real estate market as well as a “policy vacuum” amid trade negotiations.

“Within China equities, we favor AI and tourism for the secular growth potential, and high dividend yield stocks for their defensive nature,” UOB said.

—Lee Ying Shan

Trump announces 35% tariffs on Canada starting Aug. 1

U.S. President Donald Trump Thursday announced a 35% tariff on Canadian imports, starting Aug. 1, citing that Ottawa had retaliated with tariffs against Washington.

“Instead of working with the United States, Canada retaliated with its own Tariffs,” Trump said in his letter to Mark Carney, prime minister of Canada, posted on Truth Social.

He attributed fentanyl as a reason for the rate in the letter and said: “If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter.”

The 35% tariffs will be separate from all sectoral tariffs, Trump said, threatening that the duty might be increased if Canada continues to retaliate.

“If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 35% that we charge,” Trump said in the post.

Read the full story here.

Asia stock markets today: live updates

Trump’s Warning Shot to Trade Partners

July 10, 2025 at 6:34 PM GMT+1

Donald Trump’s latest threat to impose a 50% levy on Brazil over its domestic political affairs shows the rest of the world that nothing is off limits.

The US president linked the hike to the trial of former Brazilian President Jair Bolsonaro — a right-wing populist — over an alleged coup attempt in 2022, in a letter posted on his Truth Social account yesterday. It was the most extreme case yet of Trump weaponizing trade policy to make unrelated demands. Brazil even sells fewer goods to the US than it buys.

US equity futures retreated amid uncertainty over the Trump administration’s trade policies, with S&P 500 contracts slipping 0.2%, even as stocks gained in Asia and Europe. — Caroline Alexander

----OPEC+ is discussing a pause in further production increases from October after its next monthly hike, we’re told. Saudi Arabia and its partners have a tentative plan to complete the revival of a 2.2 million-barrel supply revival in September, with another monthly tranche of 550,000 barrels. While discussions need to be finalized, the prospect of a halt whipsawed crude futures on Wednesday. Brent futures were down 0.9% at $69.57 a barrel.

----As Saudi Arabia spends trillions of dollars to reshape its economy, a little-known investment group overseen by the brother of de facto ruler Mohammed bin Salman is emerging as a key power broker. Tharawat Holding, run by Prince Turki bin Salman, has taken on a role as a gatekeeper for foreign companies seeking to do business in Saudi Arabia. The firm derives its name from the Arabic word for treasure or wealth, and insiders say it oversees a web of assets worth at least $250 billion.

Trump’s Warning Shot to Trade Partners - Bloomberg

Trump’s 50% Brazil tariff stretches emergency powers already facing court challenge

Published Thu, Jul 10 2025 8:09 PM EDT

President Donald Trump’s politically charged new tariff threat — a blanket 50% duty on imports from Brazil — stretches an interpretation of his powers that is already facing a high-stakes court challenge.

Trump said in a letter Wednesday that he is imposing the massive new tariff at least partly in retaliation against Brazil’s treatment of its former president, Jair Bolsonaro.

But to do so, he is citing a law that only grants him emergency economic powers in order to deal with certain foreign threats to the United States, a White House official told CNBC Thursday.

That same law — the International Emergency Economic Powers Act, or IEEPA — is at the center of an ongoing lawsuit over Trump’s “reciprocal” tariffs that is currently before a federal appeals court.

Trump’s lawyers say his invocation of the law to impose those tariffs was an appropriate move to address multiple national emergencies, including “America’s exploding trade deficit.”

The White House did not immediately respond to CNBC’s questions about Trump’s letter to Brazil, including how Bolsonaro’s circumstances relate to Trump’s stated authority under IEEPA.

While the latest levy on Brazilian imports may not have a direct impact on the lawsuit already underway, critics say it could further erode the administration’s credibility as Trump pursues an aggressive trade agenda.

Trump’s letter announcing the tariff on Brazil “takes abuse of power to a whole new level,” said Sen. Tim Kaine, D-Va., in a statement Thursday.

Kaine vowed to “use all available means to block these latest job-killing tariffs.”

Sen. Ron Wyden of Oregon, the top Democrat on the Senate Finance Committee, accused Trump of attempting to “sacrifice the economy to settle his own personal scores, and it is far outside his legal authority.”

More

Trump Brazil tariff cites same powers facing court challenge

Pentagon strikes investment deal with US critical minerals producer

Unusual agreement follows growing concern in Washington over Chinese dominance of crucial weapons materials

10 July 2025

The Pentagon is making a $400mn direct investment in a US rare earths producer, in an unusual arrangement highlighting the Trump administration’s determination to break Chinese dominance of critical minerals and bolster domestic supply chains.

MP Materials, on Thursday said the Pentagon would become its largest shareholder, taking a 15 per cent stake in the company, as well as investing billions of dollars to build a 10,000 metric tonne magnet manufacturing facility — expected to begin preparing for operations in 2028.

“This initiative marks a decisive action by the Trump administration to accelerate American supply chain independence,” said James Litinsky, founder and chief executive of MP Materials.

---- It is rare for the US government to make direct investments in businesses. It does so on occasion to support development of technologies crucial to national interests, or in extreme circumstances to save systemically important companies from failure, such as Wall Street banks during the financial crisis.

MP Materials, based in Las Vegas, operates the US’s only rare earth mine in Mountain Pass, California, extracting rare earths such as neodymium and praseodymium, which are essential for making weapons systems and electric vehicles.

Rare earth magnets are critical for weapons systems including the F-35 Lightning II fighter jet, unmanned Predator drones and the Virginia- and Columbia-class submarines. One F-35 needs 900 pounds of rare earths.

more

Pentagon strikes investment deal with US critical minerals producer

In other news.

European Union in limbo as Washington keeps it waiting on a trade agreement

Published Wed, Jul 9 2025 8:34 AM EDT

The European Union (EU) is stuck in limbo as uncertainty persists around when a trade agreement with the U.S. might be reached.

The goal had been to agree on a framework by July 9, when a temporary reprieve from U.S. President Donald Trump’s “reciprocal” tariffs was initially meant to expire. The EU was seemingly still working to this timeline earlier in the week.

But that deadline has now passed — without the trading partners coming to an agreement.

A framework may, however, still be established as soon as this week, Trump himself suggested Tuesday.

“We’re probably two days off from sending them a letter. We are talking to them,” he said, suggesting that a letter being sent would mean a deal, or decision on tariffs, has been reached.

Trump said on social media on Monday that letters had been sent to 14 countries outlining new tariff rates.

Then, on Wednesday, he said at least seven more countries had received letters outlining punitive duties, and announced a 50% tariff on Brazil partly in retaliation against the current trial against former Brazilian President Jair Bolsonaro for his role in an alleged attempt to overturn the country’s 2022 election results. 

The EU has — so far — not received a letter.

‘Treating us very nicely’

Trump has indicated that communication between the EU and U.S. has improved.

“They treated us very badly until recently, now they’re treating us very nicely. It’s like a different world,” he told a Cabinet meeting at the White House on Wednesday. “They were among the toughest to deal with.”

This marked a shift in tone from Trump, who has often taken issue with the trade relationship between Washington and Brussels, suggesting that is unfair and unbalanced.

According to the European Council, trade between the EU and U.S. was valued at around 1.68 trillion euros ($1.97 trillion) when accounting for both goods and services in 2024. The EU recorded a surplus when it comes to goods trading, but logged a deficit in the services trade, leaving its overall trade surplus at around 50 billion euros last year.

U.S. Commerce Secretary Howard Lutnick, meanwhile, also suggested a deal was on the table.

“The European Union, to their credit, has now made significant, real offers, meaning we’re going to take down our barriers, we’re going to open our markets to American farmers, ranchers, fishermen, really open their markets, and let Americans, finally American entrepreneurial spirit finally get to sell to Europe,” he said, speaking to CNBC’s “Power Lunch” on Tuesday.

“The president’s got those deals on his desk and he’s thinking about how he wants to play them,” he added.

The EU is broadly expected to agree to a 10% baseline tariff, with the hope that it can negotiate some exemptions or strike other deals on specific sectors. This would be sharply below the 50% tariff Trump has previously called for.

More

EU in limbo as Washington keeps it waiting on a trade agreement

Global Inflation/Stagflation/Recession Watch.

Given our Magic Money Tree central banksters and our spendthrift politicians, inflation now needs an entire section of its own.

Greater risk to UK economy following Trump tariffs, says Bank of England

9 July 2025

The future of the UK economy is weaker and more uncertain due to President Trump's tariffs and conflict in the Middle East, the Bank of England has said.

"The outlook for UK growth over the coming year is a little weaker and more uncertain," the central bank said in its biannual health check of the UK's financial system.

Economic and financial risks have increased since the last report was published in November, as global unpredictability continued after the announcement of country-specific tariffs on 2 April, the Bank's Financial Stability Report said.

These risks and uncertainty, as well as geopolitical tensions, like the wars in Ukraine and the Middle East, are "particularly relevant" to UK financial stability as an open economy with a large financial sector, it said.

Pressures on government borrowing costs are "still elevated" amid significant doubts over the global economic outlook.

Had a 90-day pause on tariffs not been announced, conditions could have worsened, the report added.

The chance of prices rising overall has also grown as tensions between Iran and Israel and the US threaten to push up energy prices.

Possible higher inflation in turn raises the prospect of more expensive borrowing from higher interest rates to bring down those price rises. This compounds the pressure on state borrowing costs.

Mortgages

Borrowing costs for about 40% of mortgage holders are set to become costlier over the next three years as households refix to more expensive deals, affecting 3.6 million households, the Bank said.

Many homes have not refixed their mortgage since interest rates began to rise in 2021, meaning the full impact of higher rates has yet to filter through.

Those looking to get on the property ladder got a boost as the Bank said lenders could issue more loans deemed to be risky, meaning people could be able to borrow more.

Financial institutions can now have 15% of their new mortgages deemed risky every year, up from the current 9.7%.

Riskier mortgages are those with a loan value above 4.5 times the borrower's income.

More

Greater risk to UK economy following Trump tariffs, says Bank of England

Covid-19 Corner

This section will continue only occasionally when something of interest occurs.

 

Technology Update.

With events happening fast in the development of solar power and graphene, among other things, I’ve added this section. Updates as they get reported.

Longi unveils 34.58%-efficient tandem perovskite-silicon solar cell based on asymmetric self-assembled monolayer

In a new scientific paper published in nature, the Chinese manufacturer presented a new tandem perovskite-silicon solar cell based on a bottom cell with a heterojunction design. It also used a new type of self-assembled monolayer that reportedly reduces non-radiative recombination and increases cell efficiency.

July 9, 2025 Emiliano Bellini

Chinese solar module maker Longi has presented this week a new tandem perovskite-silicon solar cell based on an asymmetric self-assembled monolayer (SAM) aimed at reducing passivating defects and increasing efficiency.

SAMs are currently used as state-of-the-art hole transport layers in perovskite-based solar cells, offering low parasitic absorption, rapid charge extraction, and effective passivation of the perovskite’s buried interface. However, controlling their thickness, packing density, and orientation remains highly challenging.

The new tandem device was developed in partnership with China's Soochow University and was described in the paper “Efficient perovskite/silicon tandem with asymmetric self-assembly molecule,” which was recently published in nature.

“Different from most reported carbazole-based SAMs, which feature a symmetric molecular structure with nitrogen atoms bonded to phosphonic acid anchoring groups, we constructed an asymmetric carbazole-based SAM that incorporates spacers and anchoring phosphonic acid groups flanking the phenyl ring of the carbazole core, serving as a hole-selective layer in perovskite-silicon solar cells,” a spokesperson from Longi told pv magazine.

Dubbed HTL201, the new SAM reportedly improves coverage and uniformity on textured silicon substrates while optimizing interfacial energy level alignment. “Simultaneously, the strong coordination interaction between HTL201 and the perovskite film effectively reduces non-radiative recombination at the buried interface,” the spokesperson added.

The SAM was designed with a vertical configuration that purportedly offers optimal interaction with the transparent conductive oxide (TCO) recombination layer, which in turn improves the coverage on the TCO substrate. Furthermore, the energy level alignment between HTL201 and the perovskite absorber was found to improve hole extraction while reducing interfacial non-radiative recombination.

The research team built the top perovskite cell with a silver (Ag) metal contact, a thin lithium fluoride (LiF) layer and short-chain ethylenediammonium diiodide (EDAI) molecules. Furthermore, it used an electron transport layer (ETL) made of thermally evaporated buckminsterfullerene (C60), a tin oxide (SnO2) layer, a transparent back contact made of indium zinc oxide (IZO), a perovskite absorber, and the proposed SAM. 

As for the bottom device, Longi said it was a double-side-textured heterojunction silicon cell, without providing further details or specifying if it utilized the 27.3%-efficient heterojunction back contact (BC) solar cell it recently presented in another scientific paper published in nature – “Silicon heterojunction back-contact solar cells by laser patterning.”

Tested under standard illumination conditions, a tandem solar cell built with this configuration and an area of 1 cm2 achieved a power conversion efficiency of 34.58%, an open-circuit voltage of  2.001 V, a short-circuit current density of 20.64 mA/cm2, and a fill factor of 83.79%.

More

Longi unveils 34.58%-efficient tandem perovskite-silicon solar cell based on asymmetric self-assembled monolayer – pv magazine International

Next, the world global debt clock. Nations debts to GDP compared.

World Debt Clocks (usdebtclock.org)

Another weekend and a US tariff war rapidly turning bizarre and going berserk. What new trade violence will President Trump’s trade war team think up this weekend? Have a great weekend everyone.

I do not think it is an exaggeration to say history is largely a history of inflation, usually inflations engineered by governments for the gain of governments.

Friedrich August von Hayek

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