Afternoon Coffee: ZTE Secures Lifeline, Mexican Steelmakers Suspend Exports to U.S.

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Chinese phone manufacturer ZTE pulled back from the brink Thursday after the Trump administration cut a deal in exchange for lifting a ban on doing business with U.S. suppliers, Reuters reports. The agreement requires ZTE pay a $1 billion fine for evading U.S. sanctions on Iran and North Korea, as well as overhaul its corporate leadership.

Mexican Steel 

Mexican steelmakers and suppliers have suspended exports to the U.S. and will discontinue negotiations with American buyers in response to the Trump administration’s steel and aluminum tariffs, Platts reports. The suspension is open-ended, sources told Platts, and Mexico is laying the groundwork to launch World Trade Organization (WTO) proceedings against the U.S.

Argentina Bailout 

Argentina has entered into a three-year agreement with the International Monetary Fund (IMF) for a $50 billion loan to bolster the country’s struggling economy, the BBC reports. While the IMF board must still approve the deal, the Argentine government framed the bailout as an opportunity to strengthen a program of growth and development.

China Trade 

And finally, a trade update: China’s overall trade surplus narrowed in May — but not with the U.S., the Wall Street Journal reports. Even as China’s trade surplus shrank to $24.92 billion last month, from April’s $28.78 billion, the country’s surplus with the U.S. widened by 11%, as some shippers rushed to front-load orders ahead of future tariff decisions.

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