Crypto News: Trump rules out tariff exemption

Good morning, Rich Henderson here in Bloomberg's Melbourne bureau with the latest news headlines.

Today's must-reads:
• US tariffs on Australian steel and aluminum to hit
• Rio Tinto offers $9 billion in bonds after Arcadium deal
• Ukraine agrees to US proposal for 30-day truce with Russia

What's happening now

US tariffs on Australian steel and aluminum will take effect later Wednesday in the US after the White House ruled out an exemption. The move follows efforts by Anthony Albanese's government to secure the exemption, which included meetings this week between Kevin Rudd, Australia's Ambassador to the US, and the Trump administration.

Australia will soon have to import liquefied natural gas despite being one of the world's largest exporters of the fuel. Older offshore gas fields close to Australia's most populous eastern states are depleting and there is limited pipeline capacity to ship LNG from production hubs in the northwest of the country.

Rio Tinto is offering $9 billion in bonds to help repay a bridging loan used to finance its $6.7 billion acquisition of Arcadium Lithium, which it completed last week. The miner scrapped earlier plans to raise equity capital to help fund the deal.

Ex-Tropical Cyclone Alfred has left a trail of destruction in Australia, with Brisbane shut down after its wettest day in more than half a century. As insurance companies brace for payouts from storm damage and floods, University of Queensland's Paula Jarzabkowski discusses a growing insurance protection gap on Bloomberg TV's Australia Ahead.

Click here to watch the full interview.

What happened overnight

Here's what my colleague, market strategist Mike "Willo" Wilson says happened while we were sleeping…

US stocks fell again and are edging toward correction mode as the Trump administration parries with Canada over tariffs. An ex US Treasury secretary sees 50/50 chance of recession, a view to which Trump naturally differed. Thanks to a broadly weaker dollar, Aussie managed to close higher despite Trump refusing Australia an exemption from steel and aluminum tariffs. There's little on the local calendar to move things ahead of US CPI tonight.

Ukraine has agreed to a US proposal for a 30-day truce with Russia. The deal would unlock military aid that was frozen by the Trump administration. The plan was ironed out after talks between the two countries in Saudi Arabia and the US will now seek support from Russia on the proposal.

Trump said he was reevaluating plans to double steel and aluminum tariffs on Canada to 50% after Ontario announced it would suspend a 25% surcharge on electricity sent to the US. The move follows rapidly escalating trade friction between the two countries.

Tariffs are set to add further pressure on the poorest Americans by making everyday items more expensive. Low-income households spend a greater share of their budgets on goods and tend to favor cheap imports. That means they will bear the brunt of higher prices linked to Trump's trade war.

What to watch

No major events scheduled today

One more thing...

Former US Treasury Secretary Larry Summers has given the prospect the world's largest economy will slip into recession this year 50-50 odds. Policies including tariffs, immigration restrictions and federal employee layoffs will weigh on activity, he said. "We've got a real uncertainty problem, it's going to be hard to fix that," Summers said in an interview on Bloomberg Television's Wall Street Week with David Westin.

Larry Summers. Photographer: David Paul Morris/Bloomberg

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