Trump weighs postponing tariff payments to help businesses.
The Trump administration is considering postponing tariff payments on some imported goods for 90 days, according to people familiar with the matter, as it looks to ease the burden on businesses hurt by the coronavirus pandemic.
Some businesses and trade groups have argued that the levies President Trump imposed on foreign metals and products from China before the outbreak continue to raise their costs and weigh on their profits as the economy is slowing sharply. But even after the global pandemic hit the United States, Mr. Trump and his advisers have denied that cutting tariffs would be one of the measures they would undertake to buoy the economy.
The White House now appears to be considering a proposal that would defer tariff duties for three months for importers, though it would not cancel them outright. The administration’s consideration of a deferral was reported earlier by Bloomberg News.
It is not clear which tariffs the deferral might apply to, or if the idea will ultimately be approved. But the proposal appears to be separate from a plan announced on Friday by the U.S. Customs and Border Protection that it would approve delayed payment of duties, taxes and fees on a case-by-case basis
European leaders ditch frugality and respond atypically quickly.
The coronavirus pandemic sweeping the globe with lethal and wealth-destroying consequences has proved so jarring to the powers-that-be on the European side of the Atlantic that they have discarded deep-set taboos to forge atypically swift and pragmatic responses.
“This pandemic is really like a war,” said Maria Demertzis, an economist and deputy director of Bruegel, a research institution in Brussels. “In a war, you do what you have to do.”
The British prime minister, from the party of Margaret Thatcher, has effectively privatized the national railway system, while forsaking budget austerity in favor of aggressive public spending. Germany has set aside its traditional detestation for debt to unleash emergency spending, while enabling the rest of the European Union to breach limits on deficits.
The European Central Bank has transcended a legacy often marked by calamitous inaction in the face of crisis to produce something that has frequently seemed impossible: a decisive and timely response.
Beyond the current moment of emergency, some argue that the crisis will be squandered if it does not prompt meaningful change in the structure of economies after life returns to normal. They portray the rescues as an opportunity to transform the nature of the state’s role in the economy.
“It’s about changing the way we do capitalism,” said Mariana Mazzucato, an economist at University College London.
Asian markets mixed as investors await news from the United States.
Investors left Asian markets mixed in early Thursday trading as they awaited news of the fate of a huge coronavirus economic rescue package in the United States.
Japan led the declines, falling 4 percent at one point, as investors also reacted to a sharp rise in confirmed coronavirus cases in Tokyo. Other markets rose or fell more modestly.
Futures markets suggested a similar hesitance awaited Wall Street for its Thursday opening. They predicted the S&P 500 index would open modestly lower.
The Senate Wednesday night unanimously approved a record-setting $2 trillion government relief bill.
Other markets also signaled hesitance.
Prices for longer-term U.S. Treasury bonds were up, sending yields lower and suggesting investors were looking for safe places to park their money. Oil prices, a proxy for the outlook for the world economy because they indicate demand for fuel, fell on futures markets.
In Tokyo, the Nikkei 225 index was down 3.8 percent midday. Hong Kong’s Hang Seng Index was down 0.4 percent. South Korea’s Kospi index rose 0.8 percent after the country’s central bank announced further action to keep its economy supplied with money.
Australia was the Asia-Pacific region’s big gainer, with the S&P/ASX 200 index rising 2.6 percent.
Bank of Korea to pump cash into money markets in attempt to shore up economy.
South Korea is taking its boldest action yet to support its economy, pledging to put an unlimited supply of money into its financial system by buying up bonds.
The Bank of Korea said on Thursday that it will temporarily pump an unlimited amount of cash into money markets over the next three months through what is known as repurchase auctions. The action is intended to help banks and public institutions such as the land and housing authority, electricity providers and small business associations get access to much-needed cash.
The Bank of Korea’s vice governor, Yoon Myeon-shik, told reporters that it would not be wrong to see the new package as a form of “quantitative easing,” referring to huge bond buying projects that the United States and Europe undertook during the 2008 financial crisis.
South Korea’s president, Moon Jae-in, has pledged $81 billion in financial support to help companies facing bankruptcy and financing difficulties because of the effects of the coronavirus pandemic. The central bank’s move on Thursday comes as governments around the world are rushing to find ways to help shore up their own economies as they deal with the effects of the outbreak.
Reporting was contributed by Peter S. Goodman, Carlos Tejada, Alexandra Stevenson, Su-Hyun Lee, Heather Murphy.
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