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US Treasury Secretary Scott Bessent revealed that trade negotiations with China are currently stalled, emphasizing the necessity for direct talks between President Donald Trump and Chinese President Xi Jinping to resolve the complex issues. Despite recent discussions in Switzerland that saw both nations step back from imposing over 100% tariffs on each other’s goods, tensions are escalating again due to US actions such as revoking Chinese student visas and restricting sales of chip design software and jet engine parts to China. Additionally, the US has targeted Huawei by attempting to block its sales of advanced AI chips globally, drawing sharp criticism from Beijing. Meanwhile, domestic legal battles over Trump’s “reciprocal” tariffs continue, with a US court ruling them largely illegal, though an appellate court has temporarily upheld them during the appeal. Bessent remains hopeful, noting upcoming trade talks with Japan and asserting that international partners are still negotiating in good faith despite the legal uncertainties surrounding US trade policies.
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President Trump announced a significant increase in tariffs on steel imports, raising them from 25% to 50%, during a rally in Pennsylvania, claiming it will strengthen the U.S. steel industry. This move coincides with heightened tensions with China, as Trump accused them of violating a trade agreement without providing specifics. Meanwhile, his broader tariff agenda faces legal uncertainty; a federal appeals court temporarily upheld the tariffs after a trade court ruled their implementation unlawful, with potential Supreme Court involvement looming. The tariff hikes, including those on steel and aluminum, could raise costs for consumers, impacting prices from groceries to big-ticket items like cars due to the metals' widespread use. Amidst this, trade negotiations with the EU and India persist, with critical deadlines in June and July, including a potential 50% tariff on EU imports if no deal is reached. Legal challenges, such as the "major questions doctrine" previously used against Biden’s policies, now threaten Trump’s economic initiatives. Additionally, companies like e.l.f. Beauty, reliant on Chinese manufacturing, face increased costs but remain committed to their supply chains. The unfolding trade and legal saga continues to reverberate globally, with upcoming G7 discussions and court rulings set to shape the future of Trump’s tariff policies.
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Oil prices climbed as OPEC+ implemented a production increase of 411,000 barrels per day in July, a move that was less aggressive than some market fears, pushing Brent crude toward $65 and West Texas Intermediate above $62. This decision came amidst geopolitical unrest, with Ukraine targeting Russian air bases and Iran reacting to scrutiny over its uranium stockpiles, both of which could constrain supply from sanctioned OPEC+ nations. Trade tensions, exacerbated by President Trump's planned tariffs on steel and aluminum, continue to weigh on the market, contributing to a nearly 15% price decline this year following a turbulent period of tariff wars and a shift away from OPEC+'s previous high-price defense strategy. The production hike also signals Saudi Arabia's push to penalize over-producing members like Kazakhstan and Iraq, despite opposition from countries such as Russia and Algeria who favored a pause. Analysts at Westpac Banking Corp. predict Brent prices will hold within a $60-$65 range this summer, with potential slowdowns in output increases as OPEC+ prepares to review August levels on July 6.
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Elon Musk has unveiled XChat, a new encrypted messaging feature for X (formerly Twitter), as part of his vision to create a privacy-centric "everything app." Announced with features like audio/video calls, vanishing messages, and all-file sharing, XChat boasts a "Bitcoin-style encryption" on a new architecture, though technical specifics are unclear. This phrase has ignited excitement in crypto communities, with users speculating it could outshine competitors like Telegram in security. Comments on platforms like CryptoLeaks and Solana DEX servers highlight enthusiasm for enhanced privacy and operational security (OPSEC). Alongside XChat, Musk introduced X Money, a payments feature set for a cautious beta launch later this year. The updates position X to rival apps like Signal and WeChat by blending messaging, social media, and finance under one encrypted platform. Reported by TheStreet on June 1, 2025, this development underscores Musk's commitment to transforming X into a multifaceted, secure digital hub, sparking significant buzz and anticipation among users and tech enthusiasts alike.
