International - Financial Times - Credit Squeeze

Congress cannot afford to allow the Defense Production Act to expire

Six months in, the negative effects of the US president’s plans are only starting to be felt

When firing backfires

Chancellor Friedrich Merz’s government wants to threaten a strong response if Washington is not prepared to compromise

Also in today’s newsletter, Mike Johnson shuts US House early and McKinsey bars China AI work

Trump announces ‘massive’ deal that lowers levy to 15% from threatened 25%

And early tariff warnings from earnings guidance

Also in this newsletter: Why Brussels and Beijing want to keep a united front against the US despite differences

Ursula von der Leyen and António Costa prepare to meet Xi Jinping in Beijing amid geopolitical turmoil

There are lessons for central banks from past episodes of high inflation combined with weak growth

Yields for investment-grade EM borrowers fall relative to developed markets amid concerns over traditional havens

Jakarta and Washington release deal framework while US president says Philippines will pay 19% rate

Cut in guidance by Finnish telecoms equipment maker highlights how European groups are being hurt by US policy

Monthly figures come amid growing expectations of tax increases in Autumn Budget

Brussels needs to be ready to unleash its anti-coercion armoury

Energy systems can shape political institutions and make some nations more vulnerable to trade wars than others

The One Big Beautiful Bill Act loosens fiscal policy; the Fed will need to decide whether to tighten in response

First statistical rejig in more than a decade makes debt ratios appear healthier

Also in today’s newsletter, Bessent calls for review of Fed’s ‘entire’ operations and China seeks greater UN clout

Sector faces threat of levies as high as 200% on overseas imports