According to a report from MiningNews.net, Democratic lawmakers have urged the Trump administration not to support the exploration and development plan of Australian junior company Dateline Resources in the Mojave Desert, California. In a letter to Interior Secretary Doug Burgum, US Senators Alex Padilla, Adam Schiff, and Martin Heinrich stated that the recent approval by the Bureau of Land Management (BLM) for Dateline Resources to conduct rare earth exploration violated federal law, flouted the authority of the National Park Service (NPS), and set a "dangerous precedent" for industrial development within the US National Park System. "We strongly urge you to revoke this decision and uphold the integrity of the Mojave National Preserve and the National Park System," the letter read. US officials revealed that the Mojave National Preserve is home to the Colosseum gold-rare earth mine, Dateline's primary asset. The preserve was established in 1994 under the California Desert Protection Act (CDPA) to protect "rare plant species and critical wildlife corridors" in the area. "The CDPA explicitly stipulates that any mining activities within the Mojave Preserve must comply with the Mining in the Parks Act, which requires a mineral compatibility review and approval of the operation plan by the NPS," the Democratic letter stated. "However, the BLM appears to be attempting to circumvent this law by authorizing Dateline's project based on a 1985 plan initially approved for different minerals, different ownership, and issued prior to the establishment of the preserve." The 1985 plan only involved gold mining. While gold remains Dateline's core mineral at Colosseum, the Australian company announced plans last month to commence rare earth drilling, shortly after Trump declared strong support on social media for "America's second rare earth mine." In their letter to the BLM, the Democrats claimed that the shift in the mineral being developed to rare earths lacked "any new environmental assessment or mineral compatibility review." The lawmakers urged the Trump administration to revoke the BLM's reliance on the 1985 plan, affirm the NPS's jurisdiction, require compliance with the Mining in the Parks Act, and conduct a comprehensive mineral suitability review of Dateline's access rights. The junior company updated its scoping study data in August, revealing that the project could be mined for eight years, producing 71,000 ounces of gold annually at an all-in sustaining cost (AISC) of $1,490 per ounce. Although Trump's remarks about the daily schedule suggested that the {{mine}} had been approved "after years of stagnation," the Democratic Party's response indicated that the project still faced some regulatory hurdles.

On Wednesday, the South Korean stock market surged, leading gains in the Asia-Pacific stock markets . This followed the victory of Lee Jae-myung, leader of South Korea's Democratic Party, in the presidential election, ending months of leadership vacuum in the country and eliminating political uncertainty in South Korea . As of now, South Korea's benchmark stock index, the Korea Composite Stock Price Index (KOSPI), has risen nearly 2.5% to 2,765.97 points, more than 20% above the recent low of 2,293.7 points set in April. This means the index has entered a technical bull market . Since the beginning of this year, the index has risen more than 15% in total . In addition, the South Korean won also strengthened today. As of now, the South Korean won has appreciated about 0.5% against the US dollar . However, South Korean government bonds have underperformed, with the 10-year bond yield rising sharply, reflecting market concerns that the new government may implement expansionary fiscal policies, leading to an increase in bond supply . As South Korea's election authority confirmed Lee Jae-myung's election, he has officially commenced his presidential term. This has eliminated one of the biggest obstacles affecting the local market—political uncertainty . In April this year, South Korea's Constitutional Court ruled to uphold the impeachment of Yoon Suk Yeol, who was subsequently removed from the presidency. According to South Korea's Constitution, after the president is absent due to impeachment or other reasons, the country must hold an election to select the next president within 60 days. Therefore, the election originally scheduled for 2027 was brought forward to June 3 this year . Currently, market focus has shifted to Lee Jae-myung's policies aimed at boosting economic growth , with a focus on increasing government spending, improving corporate governance, strengthening labor protections, and completing ongoing tariff and exchange rate negotiations with the Trump administration . South Korea's economy contracted in the first quarter of this year, before US President Trump announced a comprehensive tariff increase in early April, highlighting the weakness of the South Korean economy . Shawn Oh, a stock trader at NH Investment & Securities, said, "Today's (market) focus will be on the new President Lee Jae-myung." He added that the market may react to Lee's commitment to improving corporate governance . Despite facing political uncertainty and economic downturn, the South Korean stock market and the won have shown resilience this year, outperforming most Asian peers. In April this year, after Yoon Suk Yeol stepped down, the won gained support and became one of the best-performing currencies in Asia . It is worth noting that during his campaign, Lee Jae-myung stated that his target for the KOSPI index was 5,000 points , but he did not specify a timetable. This goal underscores his emphasis on the stock market, and he has also pledged to boost the valuation of local stocks and end the "Korea Discount" phenomenon.

Macro News 1. Foreign Ministry spokesperson Lin Jian hosted a regular press conference yesterday. A reporter asked that the US has recently been claiming that China has violated the consensus reached at the China-US Geneva Economic and Trade Talks and has taken a series of negative actions. Lin Jian pointed out that without any factual basis, the US has smeared and accused China, imposed export controls on chips to China, suspended the sale of chip design and software to China, and announced the revocation of visas for Chinese students, among other extreme repressive measures. These actions have seriously undermined the Geneva consensus and harmed China's legitimate rights and interests. China firmly opposes this and has lodged solemn representations. Lin Jian also stated that pressure and coercion are not the right way to engage with China. He urged the US to respect the facts, stop spreading false information, correct its erroneous practices, and take concrete actions to uphold the consensus reached by both sides. 2. At yesterday's regular press conference of the Foreign Ministry, another reporter asked whether China plans to ease export restrictions or accelerate the approval of export license applications, as executives and representatives from the automotive industries in Europe, the US, and India have claimed that China's export controls on rare earths pose a shortage risk that could soon lead to a halt in automobile manufacturing. Lin Jian suggested inquiring with the competent Chinese authorities. 3. At 6 a.m. local time on June 4, the Central Election Management Committee of South Korea held a plenary session and passed a motion on the results of the presidential election vote, officially marking the beginning of Lee Jae-myung's presidential term. Around 5:03 a.m. local time on June 4, the vote-counting process for South Korea's 21st presidential election concluded. According to the results, Lee Jae-myung, the candidate from the Democratic Party of Korea, received 49.42% of the votes, while Kim Moon-soo, the candidate from the People Power Party, received 41.15%, and Lee Jun-seok, the candidate from the Reform and Innovation Party, received 8.34%. 4. The Organisation for Economic Co-operation and Development (OECD) released an economic outlook report on June 3 local time, projecting that the global economy will grow at a rate of 2.9% in both 2025 and 2026, down 0.2 and 0.1 percentage points, respectively, from the forecast made in March this year. 5. According to information from the People's Bank of China, in May 2025, the China Development Bank, the Export-Import Bank of China, and the Agricultural Development Bank of China net repaid 270 billion yuan in pledged supplementary loans. As of the end of May, the balance of pledged supplementary loans stood at 1,793.9 billion yuan. Industry News 1. The Ministry of Commerce and four other departments have organized the 2025 New Energy Vehicle (NEV) Rural Promotion Campaign. They encourage market entities in various fields, including NEV production, sales, finance, charging/battery swapping, and after-sales services, to participate together. By combining policy tools such as trade-in programs and measures to address shortcomings in charging/battery swapping infrastructure in counties, they will customize integrated sales promotion plans that combine "car purchase discounts, energy use support, and service guarantees," and improve the after-sales service network covering the entire lifecycle of car purchase, use, and maintenance. 2. Lei Jun, founder of Xiaomi, disclosed at the Xiaomi Investor Conference that the selling price of the newly launched Xiaomi YU7 could not possibly be the rumored 235,900 yuan, and the official pricing would only be determined 1-2 days before the launch. Lei Jun stated that Xiaomi began investing in R&D in the robotics field five years ago, and currently, relevant capabilities are being trialed at its automobile factory. Xiaomi's automotive chips are also under development and are expected to be launched soon. Lei Jun indicated that losses in Xiaomi's automotive business are gradually narrowing, and it is expected to achieve profitability in the third to fourth quarters of this year. 3. A reporter from Cailian Press learned that a local securities regulator had issued a notice to entities involved in the capital market (including publicly listed firms and institutions) to investigate leads, cases, and suggestions related to "short essays" in the stock market. The aim is to better promote the rectification of the phenomenon of "black mouth" (online commentators spreading false information) harming enterprises in the capital market and jointly create a clean and upright public opinion environment in the capital market. 4. According to data from the State Post Bureau, during the Dragon Boat Festival holiday, the national postal and express delivery industry handled over 1.5 billion express parcels. Postal and express delivery enterprises enhanced the delivery efficiency of specialty fresh produce by increasing the use of intelligent equipment. The national postal and express delivery industry handled 1.511 billion express parcels, up 19.4% YoY. 6. Affected by the volatile increase in international oil prices, domestic gasoline and diesel prices were raised at 24:00 on June 3. The specifics of this oil price adjustment are as follows: Starting from 24:00 on June 3, domestic gasoline and diesel prices were raised by 65 yuan and 60 yuan per mt, respectively. On a national average, the prices of 92-octane gasoline, 95-octane gasoline, and 0-diesel were all raised by 0.05 yuan per liter. Based on this calculation, filling up a 50L tank of 92-octane gasoline will cost an additional 2.5 yuan. Corporate News 1. Guangkang Biochemical announced that shareholders plan to collectively reduce their holdings by no more than 6% of the company's shares. 2. *ST Zhongrun announced the revocation of delisting risk warnings and other risk warnings, with the stock abbreviation changing to "Zhongrun Resources." 3. Guoke Military Industry announced that shareholders plan to reduce their holdings by no more than 2.97% of the company's shares. 4. Lepu Medical announced that its "Youth Needle" has received NMPA registration approval. 5. Rongfa Nuclear Power announced that its wholly-owned subsidiary has won a bid for a project worth 189 million yuan. 6. Shutaishen announced that the conditional marketing authorization application for STSP-0601 for injection has been accepted by the National Medical Products Administration. 7. United Optoelectronics announced its intention to acquire 100% of the shares of Changyi Optoelectronics, and its stock will resume trading today. 8. LONGi Green Energy stated in the record of investor relations activities that orders for its HPBC2.0 products have increased, with overseas orders accounting for over 50%. 9. NavInfo announced the signing of a strategic cooperation framework agreement with Alibaba Cloud, planning to carry out cooperation in large model applications, assisted driving, and the Internet of Vehicles. 10. China CITIC Bank announced that it had received approval to establish CITIC Financial Asset Investment Co., Ltd., with a proposed registered capital of RMB 10 billion yuan. 11. Vohringer announced that Jin Yawei would become the actual controller, and the stock resumed trading. 12. Luoping Zinc & Electricity announced that its controlling shareholder had agreed to transfer 22.4% of the company's shares, and the stock resumed trading. 13. Cuiwei Co., Ltd. announced significant declines in revenue from its retail and acquiring businesses. 14. Seres announced that cumulative sales of the AITO M9 increased by 19.46% YoY from January to May. 15. Precision Forging Technology announced plans to invest RMB 50 million to acquire a stake in Wuhan Gelanruo Intelligent Robot Co., Ltd. 16. Xiamen Tungsten stated on an interactive platform that the company had supplied various tungsten products and components to domestic and overseas fusion customers, including ITER. Global Markets 1. The three major US stock indices closed higher collectively, with the Dow Jones up 0.51%, the Nasdaq up 0.81%, and the S&P 500 up 0.58%. The Nasdaq Golden Dragon China Index closed up 0.56%, with most popular Chinese ADRs rising. 2. WTI crude oil futures closed up 1.42% at $63.41 per barrel. Brent crude oil futures closed up 1.55% at $65.63 per barrel. 3. COMEX gold futures closed down 0.6% at $3,376.9 per ounce. COMEX silver futures closed down 0.05% at $34.675 per ounce. 4. The US White House issued a statement saying that President Trump had signed an order to increase tariffs on imports of steel, aluminum, and their derivatives from 25% to 50%, effective from 00:01 AM EST on the 4th. The statement indicated that tariffs on steel and aluminum imports from the UK would remain at 25%. Investment Opportunities Reference 1. 300-kilometer fully connected, new breakthrough in China's quantum direct communication field According to media reports, a Chinese research team has innovatively proposed a theoretical architecture for long-distance, large-scale, scalable, fully connected quantum direct communication and successfully implemented a 300-kilometer-level quantum direct communication network among four nodes. The relevant research findings were published in Science Bulletin. Experimental results showed that the fidelity of shared quantum states among nodes remained above 85% after communication, verifying the reliability of the scheme in long-distance communication. The number of photon pairs reaching the receiving node after 300 kilometers of transmission still reached 300-400 Hz, meaning that after encoding, the theoretical communication rate could reach several bits per second. Shanghai Securities believes that quantum computing has become a core area of technological competition among major powers. Overseas tech giants such as IBM and Google have continued to make breakthroughs in superconducting routes, while Microsoft has taken a topological approach. China occupies an important position in exploring multiple paths in quantum computing, and the development potential of China's quantum computing industry is enormous. According to data from ICVTA&K and PhotonBox Research Institute, the global quantum industry was valued at $5 billion in 2024 and is expected to exceed $800 billion by 2035, with a CAGR of 59%. The upstream market size is projected to reach $252.7 billion in 2035. 2. Institutions claim that the current global inventory cycle for analog chips has largely hit bottom. Media reports indicate that recently, the research group led by Assistant Professor Huan of the Shenzhen-Hong Kong Microelectronics Institute at the Southern University of Science and Technology has achieved multiple significant breakthroughs in analog and mixed-signal integrated circuit design, with applications spanning multiple critical fields such as the Internet of Things (IoT), wearable systems, and next-generation biomedical technologies. Analog chips are used to process analog signals and possess functions such as power conversion, distribution, detection, as well as signal amplification and conversion in the field of electronic device management. As a crucial component of the semiconductor industry, the growth of the analog chip market is primarily driven by long-term demand from sectors like consumer electronics, automotive electronics, and industrial control, as well as by emerging fields such as artificial intelligence (AI), high-performance computing, and new energy vehicles (NEVs). CITIC Securities' research report states that after nearly six quarters of adjustment, combined with the first-quarter financial data from seven major European and American analog chip companies and their public statements, CITIC Securities judges that the current global inventory cycle for analog chips has largely hit bottom. 3. This technology is rapidly transitioning from the laboratory to commercial applications. Recently, reporters learned from Beijing Tiantan Hospital, Capital Medical University, that the hospital's Clinical and Translational Ward for Brain-Computer Interface (BCI) was officially inaugurated. "This is the first ward in China to apply BCI technology in clinical settings. The establishment of a physical ward marks the official entry of the BCI clinical translation system into a phase of 'standardization, platformization, normalization, and replicability'," introduced Cao Yong, the ward director and executive deputy director of the Neurosurgery Center at Beijing Tiantan Hospital. 2025 is regarded as a pivotal year for China's BCI technology to officially enter clinical practice. Previously, Beijing, Shanghai, and other cities have introduced relevant industrial plans, aiming to complete clinical trials for more than five invasive products by 2030. Shanghai Securities points out that BCI is hailed as "the most disruptive technology of the 21st century," and the industry is developing rapidly: from 2023 to 2024, the global BCI field has witnessed key breakthroughs, including Neuralink obtaining FDA approval to conduct human clinical trials, China's "Beinao No. 1" completing its first wireless implantation surgery, and Meta unveiling a non-invasive wristband BCI interaction prototype. These milestones signify that BCI technology is rapidly transitioning from the laboratory to commercial applications. The Chinese market is experiencing rapid growth, with significant room for further expansion. Multiple regions have introduced action plans for the development of brain-computer interface (BCI) technology. China has launched major national science and technology projects such as the "Brain Science and Brain-Inspired Intelligence Research" initiative. The valuation of leading enterprises is expected to receive additional premiums. 4. Hong Kong's Stablecoin Ordinance Officially Enacted into Law According to media reports, the Government of the Hong Kong Special Administrative Region published the Stablecoin Ordinance in the Gazette on May 30, signifying its official enactment into law. Previously, the Legislative Council of Hong Kong had formally passed the bill on May 21, establishing a licensing regime for issuers of "fiat-backed stablecoins" (stablecoins pegged to legal tender) in Hong Kong. This legislation aims to promote financial innovation while maintaining financial stability, marking a significant step forward for Hong Kong in the digital assets sector. The refinement of the regulatory framework under the Stablecoin Ordinance provides more compliant and efficient settlement tools for global cross-border payments, facilitating the large-scale application of digital currencies in cross-border scenarios. Huaxi Securities believes that as the global regulatory framework gradually improves, stablecoins and Real-World Assets (RWA) will deeply integrate, becoming key infrastructure in the financial market. The compliance and programmability of stablecoins will drive the automation and globalization of RWA in areas such as green finance and supply chain finance, supporting the realization of a new digital financial landscape where traditional assets can achieve "on-chain liquidity and global allocation."

Overnight Stock Market Major global indices generally rose on Tuesday, with all three major US stock indices closing higher. Chip stocks surged across the board, with Nvidia rising nearly 3%, extending gains from Monday, surpassing Microsoft in market capitalization, and once again becoming the world's most valuable company. Commodity Markets WTI crude oil futures closed at $63.41 per barrel, up $0.89, or 1.42%. Brent crude oil futures closed at $65.63 per barrel, up $1, or 1.55%. COMEX gold futures closed down 0.6% at $3,376.9 per ounce. COMEX silver futures closed down 0.05% at $34.675 per ounce. Market News [South Korea's Presidential Election Voting Results Bill Passes, Lee Jae-myung's Presidency Officially Begins] At 6 a.m. local time on June 4, the National Election Commission of South Korea held a plenary session and passed the bill on the presidential election voting results, officially marking the beginning of Lee Jae-myung's presidency. Around 5:03 a.m. local time on June 4, the vote counting for South Korea's 21st presidential election concluded. According to the results, Lee Jae-myung of the Democratic Party of Korea received 49.42% of the votes, Yoon Suk-yeol of the People Power Party received 41.15%, and Lee Jun-seok of the Reform and Innovation Party received 8.34%. [White House Says Trump Signed Order to Raise Steel and Aluminum Tariffs, Effective from Early Morning of June 4] The US White House issued a statement saying that President Trump had signed an order to raise tariffs on imported steel and aluminum and their derivatives from 25% to 50%, effective from 00:01 a.m. Eastern Time on the 4th. The statement indicated that tariffs on steel and aluminum imported from the UK would remain at 25%. [US Government Proposes First Spending Cut Plan, Requests Recall of $9.4 Billion] The US White House submitted a request to Congress on the same day to recall $9.4 billion in approved spending, most of which was for foreign aid. Mike Johnson, the Speaker of the US House of Representatives, stated that he had officially received the White House's request to recall $9.4 billion in wasteful foreign aid spending for organizations such as the US Agency for International Development and the Public Broadcasting Service. Mike Johnson said the House would act swiftly. It is understood that after the submission of the plan, Congress will have 45 days to process it. [Details of US-Iran Nuclear Negotiations Revealed: US Proposes Temporary Permission for Iran to Continue Uranium Enrichment] According to anonymous Iranian and European officials, the US proposed temporary measures during the US-Iran nuclear negotiations to allow Iran to continue low-enriched uranium enrichment activities while the US and other countries develop more detailed plans. The New York Times reported on the 3rd that the US and other countries will formulate a more detailed plan aimed at preventing Iran from developing nuclear weapons while allowing it to obtain the fuel needed for new nuclear power plants. According to the plan, the US will assist Iran in building nuclear reactors and negotiate the construction of a uranium enrichment facility managed by a coalition of regional countries. Once Iran begins to receive the promised benefits, it must cease all uranium enrichment activities within its borders. Iranian and European officials revealed that the plan has been submitted to Iran. [Zelensky: Opposes Unilateral Restart of Zaporizhzhia Nuclear Power Plant] Ukrainian President Zelensky held talks with IAEA Director General Grossi on the 3rd. Zelensky stated that the two sides discussed the safety of Ukraine's nuclear facilities, as well as the completion of the Khmelnytskyi Nuclear Power Plant, uranium mining, and the restoration of the damaged sarcophagus at the Chernobyl Nuclear Power Plant. Zelensky expressed that any Russian idea of restarting the Zaporizhzhia Nuclear Power Plant without Ukraine's involvement is absurd and dangerous. He emphasized that the IAEA should be stationed at the nuclear power plant for this purpose. [US Bureau of Labor Statistics: Will Correct "Minor Errors" in April Employment Data on Friday] The US Bureau of Labor Statistics stated that it will correct "minor errors" in April's employment data while releasing May's data on Friday, adding that the relevant adjustments will not affect key indicators such as the unemployment rate. In a statement on Tuesday, the Bureau of Labor Statistics said, "Due to minor errors in weights resulting from the introduction of a redesigned Current Population Survey (CPS) sample, some estimates for April 2025 will be corrected on June 6, 2025." "Major labor force indicators such as the unemployment rate, labor force participation rate, and employment-to-population ratio were not affected. Although many estimates will be corrected, the impact will be negligible." [Musk Criticizes Tax Reform Bill as "Absurd"; White House: Does Not Affect Trump's Position] US White House Press Secretary Levitt stated on the 3rd that Elon Musk's criticism "will not change" US President Trump's support for the massive tax and spending bill. It is reported that Musk posted a message on a social media platform on the same day, calling the massive bill "absurd and riddled with political manipulation." Musk claimed that the bill would significantly increase the budget deficit to $2.5 trillion, imposing an unbearable debt burden on US citizens. [White House Confirms Authenticity of Letter "Urging" Trade Negotiation Partners to "Submit Proposals"] The US White House Press Secretary stated on the 3rd that she could confirm the authenticity of the content of the letter regarding the deadline for trade negotiations. She said that the Office of the US Trade Representative sent the letter to trading partners merely to remind them of the approaching deadline, and that US President Trump was looking forward to reaching a good agreement. [Meta Reportedly Focused on Developing "Ultra-thin Open-type Headset"] Meta was reported to be adjusting its development plans: it intends to scrap the upgrade projects for its current VR products and accelerate the launch of an "ultra-thin open-type headset" before the end of next year. According to overseas tech media citing multiple sources familiar with the matter, the two alternative upgrade plans for the VR glasses Quest 4, "Pismo Low" and "Pismo High," have been canceled. Therefore, Meta's next Quest headset with a traditional design will not be launched until at least 2027. At the end of last year, Meta also confirmed that an alternative project for its high-end VR headset Quest Pro 2 had been scrapped. Meanwhile, Meta is accelerating the R&D project for its ultra-thin open-type headset, code-named "Puffin," with the goal of launching it before the end of 2026. In terms of form factor, the device will connect an independent computing module and a battery via cables. Sources familiar with the matter said that Meta is exploring display system solutions at different price points for this product, and the final mass-produced version has not yet been determined. [US eVTOL Company and Saudi Enterprise Explore Cooperation Opportunities, with Potential Delivery of 200 Electric Aircraft in the Future] On Tuesday (June 3) local time, Abdul Latif Jameel, a well-known Saudi enterprise, announced on its official website that it had signed a memorandum of understanding with Joby Aviation, a US company, to explore opportunities for establishing a distribution agreement for Joby's eVTOLs in Saudi Arabia. The press release stated that the two parties are expected to deliver up to 200 Joby Aviation aircraft and related services in the coming years, with the total transaction value potentially approaching $1 billion. "In the long run, both Abdul Latif Jameel and Joby see potential revenue opportunities in the Middle East region," it said. [Broadcom Announces Delivery of Switch Chips, Setting an Industry Record for Capacity] On June 3, Broadcom announced the official delivery of its Tomahawk® 6-series switch chips, setting an industry record with a switching capacity of 102.4 Tbps per single chip, which doubles the bandwidth of existing Ethernet switch products. [Meta and Constellation Sign 20-Year Power Supply Agreement] On Tuesday local time, tech giant Meta reached a 20-year agreement with Constellation Energy, the largest owner of nuclear power plants in the US, to meet the power demand driven by the artificial intelligence (AI) boom. According to the released statement, starting from June 2027, Meta will purchase approximately 1.1 gigawatts of electricity from Constellation's Clinton Clean Energy Center in Illinois, which represents the full power generation capacity of one of the center's nuclear reactors.

On Thursday, April 24, local time, the German government revised down its economic growth forecast for this year, predicting that its GDP would stagnate after two consecutive years of contraction. Outgoing German Minister of Economy Habeck stated in a press release in Berlin on Thursday that Germany's economic growth rate this year could be zero, lower than the 0.3% growth forecast in January. In October last year, the German government had predicted a 1.1% growth rate for this year. As the largest economy in Europe, Germany has experienced two consecutive years of economic contraction, making it the only G7 member that failed to achieve economic growth in the past two years. Habeck attributed Germany's persistent economic weakness to the uncertainty caused by the trade war initiated by US President Trump, weak export demand, and declining competitiveness. For a long time, Germany has relied on exports to drive economic growth, leading the world in high-end manufacturing sectors such as industrial machinery and luxury cars. Trump's tariff policies have further increased the risks faced by German exports, as he previously imposed a 20% reciprocal tariff on the EU. Germany is the US's largest trading partner in Europe, with a record trade surplus of 70 billion euros with the US in 2024. "Given Germany's deep integration into global supply chains and high degree of openness to foreign trade, the new wave of US trade protectionism could have significant direct and indirect impacts on our economic growth," he said. Habeck called for negotiations to resolve the transatlantic trade dispute. Habeck also noted that since early November last year, Germany has not had a governing majority in parliament, and a new government has yet to be formally formed after the February elections. In the February elections, the conservative Union Party (composed of the CDU and CSU) won the most seats. The German parliament is scheduled to meet on May 6, and if the parties of the new government approve the coalition agreement reached earlier this month, the parliament will vote to elect CDU leader Merz as the new chancellor. Previously, the Union Party had reached a coalition agreement with the center-left Social Democratic Party. Last month, the Union Party, together with the SPD and the Greens, pushed through an investment plan aimed at significantly increasing defense and infrastructure spending in an attempt to boost the economy. However, Habeck stated that the economic boost from these fiscal stimulus measures would not be felt until next year, when growth is expected to reach 1%. German Central Bank President Nagel was more pessimistic, saying in a media interview on Wednesday that if Trump's tariff policies are fully implemented, the German economy could contract for the third consecutive year this year.

On Wednesday, Germany's conservative party and the center-left Social Democratic Party reached a coalition agreement, marking the finalization of the formation of Germany's new government, which is expected to officially take office in May. This comes at a time when the US has sparked a global tariff war, but US President Trump recently announced a 90-day tariff suspension for certain countries, which was seen as a significant positive signal by the market. On Wednesday, US stocks surged across the board, with the Nasdaq rising by 12% in a single day, and this sentiment also drove a widespread sharp increase in the Asia-Pacific market during Thursday's early trading. On April 9, the US imposed a 10% baseline tariff on major trading partners and varying degrees of reciprocal tariffs, and around this time, economies such as China and the EU took countermeasures against US trade bullying. Following Trump's "backdown" statement, Friedrich Merz, the conservative leader and Germany's incoming chancellor, addressed the White House in English, stating that a key message to Trump is that Germany is getting back on track. He emphasized that the EU needs to unite in response to the escalating global tariff war, and Trump's announcement of a tariff suspension proves that unity is effective, serving as a successful example of Europe's unified trade policy approach. New Atmosphere Germany's new government faces significant trade challenges upon taking office, and Merz needs to lead the government in cooperating with the EU to jointly address US tariff threats. Merz stated on Wednesday that the German coalition government will be a strong government capable of taking action, increasing defense spending, and enhancing Germany's economic competitiveness. Merz is clearly signaling the determination of the new German government to reassert EU leadership and strengthen international influence. He also emphasized that the EU hopes to reach a zero-tariff agreement with the US, which would resolve trade disputes. Merz also mentioned that he will meet with Trump soon. Germany's new ruling coalition also outlined its governance plan: agreeing to reduce taxes for low- and middle-income groups, lower corporate taxes, reduce energy prices, support the EV industry, and repeal a controversial supply chain law. The coalition will also establish a committee to further reform the "debt brake" stipulated by the German constitution, a rule that critics have long argued limits Germany's fiscal freedom and hinders market vitality. Joerg Kraemer, chief economist at Commerzbank, stated that the new coalition's policies are moving in the right direction, but given years of declining competitiveness, Germany's economic policy has not truly been reset.