Bloomberg
“Trump Reversal on Border Policy Leaves Congress on Hook for Fix.”
President Donald Trump’s sudden reversal on his policy to split undocumented families at the U.S.-Mexico border temporarily eased pressure on Congress to act on a politically volatile issue, but puts lawmakers no closer to a permanent fix.
There is little dispute, however, that representatives and senators need to act. Senator John Cornyn of Texas, the No. 2 Republican leader, said Trump’s order could be rejected by the courts or subject to a lawsuit, so a legislative response would ensure that families remain intact.
“It’s better to a have a belt-with-suspenders approach here and actually do it through legislation, just to remove any chance that the executive order could be set aside by litigation,» he said after Trump directed the Homeland Security Department to keep families together in detention centers when they are apprehended after crossing the U.S. border from Mexico.
It was increasingly clear, though, that a speedy resolution from the House and Senate was unlikely. That means the issue likely will continue to roil the country as the November elections that will decide control of Congress draw nearer.
An attempt by House Republicans to resolve the question as part of broader immigration legislation that had been set for a vote Thursday was on the brink of collapse amid an intra-party fight over other provisions.
Reuters
“Coal in the crossfire: Chinese traders wary of being burnt by trade war.”
At least three U.S. coal shipments on their way to China may end up casualties of the escalating trade dispute after Beijing said it would impose steep tariffs that may kick in before the ships reach their destinations.
The addition of coal to the list of more than 650 items facing higher tariffs came as a shock to Chinese steel mills and trading firms that just last month were encouraged by Beijing to buy more U.S. coal to narrow the trade gap, four sources with knowledge of the plan said.
Although 545 items on the list face higher tariffs starting July 6, Beijing did not specify when coal and the other remaining items would be hit.
But coal’s presence on the list has sent shudders through the market.
“I am really worried. I haven’t found buyers interested in these cargoes now,” said the manager of Shanghai Runhe International Trade Co, which has three shipments of U.S. coking coal en route to China.
He said Runhe had paid for the coal up front rather than using letters of credit from banks. “Who knows what Trump is going to do next? In the worst scenario, we lost some money,” he added. He declined to be named because of company policy.
A cargo of U.S. coking coal, depending on the size of the vessel, can be worth $10 million to $30 million. From late 2014 until January 2017, China bought no coal from the United States, as it typically costs more, takes longer to arrive and is of lower quality than Australian coal.
Purchases resumed at a lower level after President Donald Trump took office, Thomson Reuters Eikon data show. Replacing American shipments with coal from other places would not be difficult, the sources said.
BBC News
“Italy warns EU partners on migrant deal ahead of summit.”
Italy says it will not sign up to an EU plan for tackling illegal migration to Europe if it does not make help for Italy a priority. The leaders of 10 member states plan to meet in Brussels on Sunday in a push to tighten border checks and stem the flow of non-EU migrants inside the bloc.
Italy is now the main arrival point for boatloads of migrants – mostly Africans fleeing chaos and violence in Libya. «We need help now,» Italy’s right-wing Interior Minister Matteo Salvini said. «If we are going to Brussels to receive the HOMEWORK already prepared by the French and Germans… the prime minister would do better to save the cost of the trip,» he tweeted.
Sunday’s talks come amid serious divisions in the EU over migration and asylum, overshadowing an EU summit to be held on 28-29 June. Mr Salvini, a Eurosceptic, heads the anti-immigration League party, which accuses the EU of leaving Italy to struggle with an unfair burden of asylum claims. Italy’s new coalition government wants to deport half a million undocumented migrants, many of whom are housed in squalid reception centres.
Speaking on Italy’s Rai national TV, Mr Salvini said it was «unacceptable» to be told «we will help you in one or two years, while you keep those who arrive and we will send you others». Italy’s Prime Minister Giuseppe Conte has said measures to curb the flow of migrants to Italy from North Africa are the priority – not transfers of migrants from one EU country to another.
Among them are refugees from the war in Syria or other conflicts, who generally have a right to asylum.
Bloomberg
“China Accuses U.S. of Trade ‘Abuses’ as India Hits Back at Trump.”
Global trade tensions deepened Thursday with China reiterating it will hit back if the latest tariff threats from Donald Trump materialize, while India followed the European Union in slapping retaliatory levies on U.S. goods.
China is «fully prepared» to respond to any new list of U.S. tariffs, according to a commerce ministry spokesman, who said the nation will use a combination of quantitative and qualitative measures. Trump on Monday evening ordered up identification of $200 billion in Chinese imports for additional tariffs of 10 percent — with another $200 billion after that if Beijing retaliates.
India raised tariffs on a slew of items in retaliation for the U.S. imposing higher levies on some products shipped from the South Asian nation, echoing steps taken by China, the European Union and other trading partners. The import duty on chickpeas and bengal gram, or chana, has been increased to 70 percent and will take effect from Aug. 4.
U.S. Commerce Secretary Wilbur Ross on Thursday defended Trump’s decision to unleash tariffs on its trading partners, saying they’re necessary to ensure reciprocity.
The benchmark Chinese stock index sank 1.4 percent on Thursday, falling for fifth day out of the last six, and other emerging markets also declined, while the dollar strengthened. The main European equity gauge, already under pressure in the wake of Daimler AG’s cut to its profit outlook, headed lower and futures on the S&P followed suit.
The world’s most-powerful central bankers this week warned that escalating international trade tensions have started damaging confidence among companies, threatening the global economic expansion.