Trade deals between US President Donald Trump’s administration and other countries could be done by the September 1 Labor Day holiday, US Treasury Secretary Scott Bessent says.

Bessent on Friday cited talks with 18 main United States trading partners and new revisions to a deal with China aimed at expediting rare earths shipments.

The United States sent a new proposal to the European Union on Thursday and India sent a delegation to Washington DC for more talks.

“So we have countries approaching us with very good deals,” Bessent said on Fox Business Network.

“We have 18 important trading partners. … If we can ink 10 or 12 of the important 18, there are another important 20 relationships, then I think we could have trade wrapped up by Labor Day,” Bessent said.

He did not mention any changes to a July 9 deadline for countries to reach deals with the United States or have tariffs spike higher, but has previously said that countries negotiating in good faith could get deals.

Trump told reporters at the White House on Friday that he could extend the tariff deadline or “make it shorter,” adding that within the next week and a half, he would notify countries of their tariff rates.

“I’d like to just send letters out to everybody: Congratulations. You’re paying 25 per cent” tariffs, Trump said in an apparent joke.

Bessent said the United States and China had resolved issues surrounding shipments of Chinese rare earth minerals and magnets to the US, further modifying a deal reached in May in Geneva.

As part of its retaliation against new US tariffs, China suspended exports of a wide range of critical minerals and magnets, upending supply chains central to car makers, aerospace manufacturers, semiconductor companies and military contractors around the world.

During US-China talks in May in Geneva, China committed to removing the measures imposed since April 2 but those critical materials were not moving as fast as agreed, Bessent said, so the US put countermeasures in place.

“I am confident now that we – as agreed, the magnets will flow,” Bessent said, adding that these materials would go to US firms that had received them previously on a regular basis. 

He did not disclose details of the latest agreement, which Trump administration officials said was reached earlier this week.

Efforts to resolve the dispute included a phone call between Trump and Chinese President Xi Jinping which led to teams from both sides meeting again in London, as negotiators try to end a trade war between the world’s biggest economies.

China’s commerce ministry said on Friday the two countries have confirmed details on the framework of implementing the Geneva trade talks consensus. 

It said China will approve export applications of controlled items in accordance with the law. 

It did not mention rare earths.

China has dual-use restrictions in place on rare earths which it takes “very seriously” and has been vetting buyers to ensure that materials are not diverted for US military uses, according to an industry source. 

This has slowed down the licensing process.

Indian government sources told Reuters that a trade delegation from New Delhi was back in Washington DC on Friday aiming to sew up a limited US trade deal ahead of the July 9 deadline.

Trump administration officials frequently count India among countries with which trade talks are at an advanced stage, along with Japan. 

But early optimism about a simple deal to reduce India’s high tariffs has hit roadblocks over disagreements on US import duties for car parts, steel and farm goods, Indian officials with direct knowledge said.

Trump said that his administration was looking to get a “full trade barrier dropping” deal with India.

“I’m not sure that that’s going to happen but as of this moment, we’ve agreed to that – go into India and trade,” Trump said.

The US will continue to put pressure on Australia to boost its defence spending after a pledge from European leaders, a former ambassador says.

NATO member nations have agreed to spend five per cent of their economic output on defence, and security more broadly, following demands by US President Donald Trump.

The US has called on Australia to massively increase the defence budget by tens of billions of dollars to 3.5 per cent of gross domestic product.

But Anthony Albanese is standing firm and has maintained Australia will decide its spending.

Former ambassador to the US Arthur Sinodinos said the best strategy for Australia was to engage with the US on extra capabilities that would best complement the two countries’ aims for the Indo-Pacific.

“The pressure from the US for allies and partners in the Indo-Pacific to increase defence spending will continue, particularly in the light of commitments made at the recent NATO summit,” he told AAP.

Mr Albanese is trying to secure his first face-to-face meeting with Mr Trump, after planned talks on the sidelines of the G7 summit earlier in June were cancelled due to the escalating conflict between Israel and Iran.

Analyst Andrew Carr said the federal government was very aware the Trump administration represented a more “vindictive” ally in Washington.

“Access to Australian facilities has often been to the Americans far more important than Australia’s own military capabilities,” he said.

“If we’re being seen to kind of ‘play ball’ on a whole range of political intelligence, basing and other areas, then the spending is going to be a small part of that story.”

The Pentagon’s 30-day review of its nuclear submarine deal with Australia under the AUKUS partnership is under way.

Mr Sinodinos said there was strong support for the security pact within the state department and Congress.

Defence analysts believe Mr Trump is unlikely to scrap the $368 billion submarine program altogether but might demand a bigger contribution from Australia for the US submarine industrial base.

Australia has already made a first $800 million down-payment of a total $4.7 billion for its plan to acquire nuclear-powered submarines.

Australians stranded in Iran say government advice to escape by crossing international borders is not feasible for the most vulnerable, amid fears a fragile truce between Israel and Iran could break.

Efforts to bring Australians home from the region have been complicated by border restrictions and flight path closures.

Perth engineer Vahid said his sister Azam and their parents Ezat, 70, and Hossein, 86, had travelled to Iran in June 2024 so his father could undergo health checks before returning to Australia as their permanent residency application was being processed.

But the family has been left stranded after airports were shut down and borders closed following the outbreak of fighting. 

To make matters worse, his parents’ visas have expired, making a return even more difficult.

“Dad is 86 years old and cannot travel long distances by car to the Azerbaijani border or Turkey to get to the Australian consulate because the consular office in Tehran is closed,” he told AAP on Friday.

He is pleading with the federal government for guidance after the only advice provided was to cross the border into Azerbaijan or to shelter in place.

The trip, which Azam, Ezat and Hossein would have to organise, would take at least 12 hours by car.

“There is no other option except to go through the border by car,” said Vahid, who asked for his surname not to be used.

“This solution is not feasible for them – for people like my parents at that age – it’s not feasible for them to travel long distances.”

The family is under immense stress, fearing the “fragile” ceasefire could shatter, and is unable to escape the capital Tehran to a safer location due to Hossein’s age.

“I experience lots of stress, maybe double the stress, over here because I can see the situation and I don’t have any options to help them,” Vahid said.

He urged authorities to issue his parents with new visas and to help his sister, an Australian citizen, return to her son in Sydney, saying the situation was “out of their hands”.

About 3200 Australians wanting to leave Iran have registered with the Department of Foreign Affairs. 

Iranian Community of Western Australia president Mohammad Bahar said those he had spoken with were happy with the advice and felt the government “never forgot them”.

DFAT says it is supporting Australians secure seats on commercial flights that are starting to resume out of Iran. 

Australians can leave Iran using border crossings into Azerbaijan, Turkey, Armenia or Turkmenistan, with the Smartraveller website adding those who can’t or don’t want to leave should monitor local developments and follow local advice.

A ceasefire was reached after 12 days of war, which erupted when Israel launched attacks on Iranian military and nuclear sites.

The assault triggered waves of retaliatory strikes before the US president intervened to put an end to the escalating violence.

Amazon founder Jeff Bezos and journalist Lauren Sanchez are set to exchange marriage vows at a ceremony in Venice, part of a three-day wedding extravaganza that has attracted dozens of celebrity guests but also protests by local activists.

Bezos, 61, and Sanchez, 55, will exchange rings on the small island of San Giorgio, opposite St Mark’s Square on Friday, accompanied by singing from Matteo Bocelli, son of the famous Italian pop-opera tenor Andrea Bocelli.

The ceremony will have no legal status under Italian law, a senior city hall official told Reuters, suggesting that the couple may have already legally wed in the United States, avoiding the bureaucracy associated with an Italian marriage.

The festivities, estimated to cost around $A75 million, culminate on Saturday with a party in a former medieval shipyard where Lady Gaga and Elton John are reportedly set to perform.

Bill Gates, Orlando Bloom, Tom Brady, the queen of Jordan, Oprah Winfrey, Kris Jenner and Kim and Khloe Kardashian as well as Ivanka Trump and Jared Kushner and Domenico Dolce from Dolce & Gabbana are among the 200-250 guests.

Amid tight security, there have been glimpses of the celebrities moving around town, the women in summer dresses and high heels stepping somewhat gingerly off boats ferrying them around the city’s canals.

Celebrations began on Thursday evening in the cloisters of Madonna dell’Orto, a medieval church in the central district of Cannaregio that hosts masterpieces by 16th-century painter Tintoretto.

“This magical place has gifted us unforgettable memories,” the bride and groom said on their wedding invitation, in which they asked for “no gifts” and pledged three million euros ($A5.4 million) in charity donations for three Venetian institutions.

Businesses have welcomed the glitz and glamour but it is being resisted by a local protest movement whose members resent what they see as Venice being gift-wrapped for ultra-rich outsiders. Bezos is No. 4 on Forbes’ billionaires list.

Giulia Cacopardo, a 28-year-old representative of the “No Space for Bezos” movement, complained that the needs of ordinary people were being neglected in a city that is a tourist magnet and fast depopulating largely due to the soaring cost of living. Venice’s city centre has less than 50,000 residents, compared to almost 100,000 in the late 1970s.

“When you empty a city of its inhabitants, you can turn it into a stage for big events,” Cacopardo told Reuters. “(But) the money that Bezos spends on this wedding does not end up in the pockets of Venetians. The owners of luxury hotels are not Venetians.”

A planned anti-Bezos march has forced the move of Saturday’s party to a more secluded part of Venice, the Arsenale former shipyard.

But politicians, hoteliers and other Venice residents are happy about the wedding, saying that such events do more to support the local economy than the multitudes of day-trippers who normally overrun the city.

“We are happy and honoured to welcome Jeff Bezos and his consort Lauren Sanchez,” said Mayor Luigi Brugnaro, who sent white roses to the bride and a maxi-bottle of Amarone luxury red wine to the groom.

Bezos, Amazon’s executive chair, got engaged to Sanchez in 2023, four years after the collapse of his 25-year marriage to MacKenzie Scott.

Global shares have rallied helped by signs of progress in US-China trade talks, while the dollar held close to its lowest levels in more than three years.

World stock markets have rallied to record highs this week, as traders took confidence from a ceasefire between Iran and Israel and markets stepped up bets for US rate cuts.

A trade agreement between the US and China on Thursday on how to expedite rare earth shipments to the US was also seen by markets as a positive sign, amid efforts to end the tariff war between the world’s two biggest economies.

Asian shares hit their highest in more than three years in early trading, and US stock futures pointed to a firm start for Wall Street shares.

The pan-European STOXX 600 index was up 0.8 per cent on the day, set for a 1.1 per cent weekly gain – its best week since mid-May.

London’s FTSE 100 was up 0.5 per cent and Germany’s DAX gained 0.6 per cent.

The MSCI World Equity Index touched a fresh record high and was set for a weekly gain of 2.8 per cent.

The S&P 500 index is up just 4.4 per cent this year overall, following a volatile first half of the year, dominated by US President Donald Trump’s “Liberation Day” tariff announcement on April 2, which sent stocks plunging.

“What we are having right now is potentially some optimism about some trade deals,” said Vasileios Gkionakis, senior economist and strategist at Aviva Investors.

“We have… come from quite low levels in the aftermath of the Liberation Day in April. To a certain extent we have also had some mini-selloff on the back of the events in the Middle East, and in that sense we’re rebounding.”

Trump has set July 9 as the deadline for the European Union and other countries to reach a deal to reduce tariffs.

Mark Haefele, Chief Investment Officer at UBS Global Wealth Management said that in the near-term, the firm saw greater upside potential in US and emerging markets than in Europe.

The dollar remained on the backfoot, hovering near its lowest level in three-and-a-half years against the euro and sterling.

The dollar index was down a touch on the day at 97.269 , holding near its lowest in more than three years. The euro was at $US1.1708 ($A1.7867), getting a lift after data showed French consumer prices rose more than expected in June.

It held near multi-year peaks hit a day earlier.

“We see the US dollar as unattractive,” said Haefele at UBS Wealth Management.

Markets are focused on US monetary policy, as traders weigh up the possibility of Trump announcing a new, more dovish chair of the Federal Reserve.

Traders have stepped up their bets on US rate cuts, and are now pricing in 64 basis points (bps) of easing this year versus 46 bps expected on Friday.

The dollar is having its worst start to a year since the era of free-floating currencies began in the early 1970s.

“I don’t think it’s just the repricing of the Fed, I think there is a broader issue here of some tarnishing of US exceptionalism,” Aviva Investors’ Gkionakis said.

Core PCE price data, the US central bank’s preferred measure of inflation, is due later in the session.

German 30-year government bond yields were on track for their biggest weekly increase in nearly four months after rising this week on expectations of increased borrowing by Germany’s government.

Oil prices meanwhile rose but were set for their steepest weekly decline since March 2023, as the absence of significant supply disruption from the Iran-Israel conflict saw any risk premium evaporate.

Brent crude futures rose 0.5 per cent to $US68.06 ($A103.86) a barrel while US West Texas Intermediate crude was up by the same amount to $US65.54 ($A100.01).

The United States has reached an agreement with China on how to expedite rare earth shipments to the US, a White House official said, amid efforts to end a trade war between the world’s biggest economies.

President Donald Trump earlier said the United States had signed a deal with China on Wednesday, without providing additional details, and that there might be a separate deal coming up that would “open up” India.

During US-China trade talks in May in Geneva, Beijing committed to removing non-tariff countermeasures imposed against the United States since April 2, although it was unclear how some of those measures would be walked back.

As part of its retaliation against new US tariffs, China suspended exports of a wide range of critical minerals and magnets, upending the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world.

“The administration and China agreed to an additional understanding for a framework to implement the Geneva agreement,” a White House official said on Thursday.

The understanding is “about how we can implement expediting rare earths shipments to the US again”, the official said.

A separate administration official said the US-China agreement took place earlier this week.

US Commerce Secretary Howard Lutnick was quoted as saying by Bloomberg: “They’re going to deliver rare earths to us” and once they do that “we’ll take down our countermeasures.”

On Friday, China’s commerce ministry said the two countries recently confirmed details on the framework of implementing the Geneva trade talks consensus. It said China will approve export applications of controlled items in accordance with the law. It did not mention rare earths.

While the agreement shows potential progress following months of trade uncertainty and disruption since Trump took office in January, it also underscores the long road ahead to a final, definitive trade deal between the two economic rivals.

China has been taking its dual-use restrictions on rare earths “very seriously” and has been vetting buyers to ensure that materials are not diverted to US military uses, according to an industry source. This has slowed down the licensing process.

The Geneva deal had faltered over China’s curbs on critical minerals exports, prompting the Trump administration to respond with export controls of its own preventing shipments of semiconductor design software, aircraft and other goods to China.

In early June, Reuters reported China had granted temporary export licences to rare-earth suppliers of the top three US automakers, according to two sources familiar with the matter, as supply chain disruptions began to surface from export curbs on those materials.

Later in the month, Trump said there was a deal with China in which Beijing would supply magnets and rare earth minerals while the US would allow Chinese students in its colleges and universities.

Anthony Albanese is digging his heels in on lifting defence spending as the US heaps more pressure on its allies to increase their share.

NATO members agreed to spend five per cent of their economic output on defence and security, after calls by US President Donald Trump.

The boost has led to more pressure on Washington’s Indo-Pacific allies to do the same, with White House press secretary Karoline Leavitt saying countries such as Australia should follow suit.

“If our allies in Europe and our NATO allies can do that, I think our allies and our friends in the Asia-Pacific region can do it as well,” she said.

Analyst Andrew Carr said defence spending was a “hedge against a potential future” that could result in money being wasted or a nation harmed without the extra resources during wartime.

“Given where we are now in the kind of worsening strategic environment, including in our region, there’s probably a good reason for increasing spending faster even than it was proposed in 2023,” the ANU Strategic and Defence Studies Centre senior lecturer said.

The defence strategic review, released two years ago, found more funding will be required and must match the strategic circumstances Australia faces.

Dr Carr said Australia had made a significant investment over the past 14 years in defence that amounted to a “near doubling” of spending in real terms.

NATO nations will be expected to spend 3.5 per cent of their gross domestic product on core defence and a further 1.5 per cent on broader security.

This includes adapting infrastructure for military use and protecting energy sources.

Australia’s defence spending is set to rise from two per cent of GDP now to 2.3 per cent by 2033/34.

Appearing frustrated by repeated questions on whether Australia should increase its defence budget, the prime minster said the plan – which was taken to the federal election – will be followed through.

“What we’re doing is making sure that Australia has the capability that we need. That’s what we’re investing in,” he told reporters in Sydney on Friday.

“We’ve increased it by $57 billion over the medium term and by more than $10 billion in the short term as well.”

Spain objected to the spending pledge and flagged it did not intend to meet the five per cent target.

Mr Trump warned the European nation its exports could be slapped with fresh tariffs by the US if it did no commit to the alliance’s commitment on defence spending.

Asked if he was concerned Australia could face a similar threat from the US president, Mr Albanese played down the prospect.

“I’m not going to comment on things between Spain and the United States. What my job is is to look after Australia’s national interest, that includes our defence and security interests,” he said.

Foreign Minister Penny Wong is preparing to fly to the US for talks with US Secretary of State Marco Rubio.

The meeting with Mr Rubio will be part of discussions between the foreign ministers of Quad alliance nations, which includes Japan and India.

Quad foreign ministers previously met in January, with the alliance focusing on issues in the Indo-Pacific.

Opposition defence spokesman Angus Taylor said boosting spending levels was not about doing what the US wanted.

“This is not about being bullied,” he said.

“This is about being doing the right thing for our great country, and that’s what we want to see.”

The US and China have signed an agreement on trade, President Donald Trump said, adding he expects to soon have a deal with India. 

Commerce Secretary Howard Lutnick told Bloomberg TV that the deal was signed earlier this week. Neither Lutnick nor Trump provided any details about the agreement.

“We just signed with China the other day,” Trump said late on Thursday. 

Lutnick said the deal was “signed and sealed” two days earlier.

It follows initial talks in Geneva in early May that led both sides to postpone massive tariff hikes that were threatening to freeze much trade between the two countries. Later talks in London set a framework for negotiations and the deal mentioned by Trump appeared to formalise that agreement.

“The president likes to close these deals himself. He’s the dealmaker. We’re going to have deal after deal,” Lutnick said. 

China has not announced any new agreements, but it announced earlier this week that it was speeding up approvals of exports of rare earths, materials used in high-tech products such as electric vehicles. Beijing’s limits on exports of rare earths have been a key point of contention. 

The Chinese Commerce Ministry said Thursday that Beijing was accelerating review of export licence applications for rare earths and had approved “a certain number of compliant applications.” 

Trade unionists, business leaders and welfare advocates are among the confirmed guests for the federal government’s economic summit.

August’s productivity roundtable will include ACTU secretary Sally McManus, Business Council of Australia chief executive Bran Black, Australian Council of Social Service head Cassandra Goldie along with productivity commissioner Danielle Wood.

Australian Chamber of Commerce and Industry chief executive Andrew McKellar and Australian Industry Group head Innes Willox are also confirmed, as is ACTU president Michele O’Neil and Council of Small Business Organisations of Australia chair Matthew Addison.

The summit will look to find ways to boost flagging levels of productivity in the economy.

“Each participant will play an important role in helping to shape our national reform priorities to boost productivity, strengthen our resilience and improve budget sustainability,” Treasurer Jim Chalmers said.

“This initial group includes leading voices from business, unions, the community sector and our key economic institutions.

“This is a representative group that we’re asking to provide ideas and build and advance consensus around them.”

It comes after the treasurer extended an invitation earlier in the week to opposition counterpart Ted O’Brien.

The summit will be held over three days in Canberra.

Dr Chalmers said the roundtable would include opportunities for state and territory representatives to contribute, as well as those on the cross bench in federal parliament.

“More invitations will be issued in tranches and in due course as the agenda takes shape,” he said.

“We will bring additional stakeholders, experts and representative groups to the roundtable, including for specific days, sessions and topics.”

Members of the public are also urged to offer ideas, with submissions open until late July.

“We welcome proposals to improve productivity, build economic resilience in the face of global uncertainty, and strengthen budget sustainability,” Dr Chalmers said.

The ideas would need to meet criteria including being in the national interest, be positive for the federal, as well as being specific.

Experts are concerned about Australia’s lagging growth in productivity – a key economic measure of efficiency and long-term driver of improved living standards.

The Business Council’s chief executive said he looked forward to providing practical solutions the productivity challenge.

“Productivity growth is the best way to sustainably lift living standards for all Australians, which is why it is critical that there is constructive engagement between all stakeholders,” Mr Black said.

Australia’s economy is tipped to strengthen over the next few years despite the uncertain global backdrop, but may stagnate without serious tax reforms.

While Australia’s economic growth hit speed bumps early in of 2025 from Cyclone Alfred, other weather events and a dip in government spending, Deloitte Access Economics is optimistic the pace of economic growth will accelerate over the coming quarters.

“Conditions are improving,” the economic services company said in a report released on Friday.

“Real wages are grinding higher (even if it will be around 2030 before pre-pandemic purchasing power is restored), interest rates are declining, and inflation is no longer preying on consumers’ wallets or their psyche.”

That suggests consumer spending will pick up, despite the jarring effects of Donald Trump’s second US presidency and other global concerns weighing on confidence, the report states.

Construction activity will also be a source of economic strength, with a significant lift in dwelling activity expected across 2026 as the industry works through a backlog of projects and reforms to regulations and zoning take effect.

The quarterly report forecast Australia’s gross domestic product would grow by 2.1 per cent in 2025/26 and 2.4 per cent the following year, up from the 1.4 per cent GDP growth in the year to March 2025.

The forecast is roughly in line with estimates from the Reserve Bank, which predicted in May that Australia’s GDP would grow by 2.2 per cent in 2025/26 and 2.2 per cent the following year.

The Deloitte report forecasts the central bank will cut interest rates by a total of half a percentage point over the rest of 2025, and again in 2026.

It predicts 2025 will be the nadir for the Aussie dollar, buying just an average of 63.60 US cents, from 66 US cents in 2024.

But it forecasts the Aussie will buy an average of 64.70 US cents in 2026, 67.4 US cents in 2027 and 68.70 US cents in 2028.

However, Deloitte Access Economics partner and report co-author Stephen Smith warned globalisation, financialisation and technology change that had permanently boosted Australian living standards were fading.

Australia couldn’t rely on the global economy to drive prosperity, he said.

Mr Smith said one of the most significant levers to drive investment, productivity and efficiency was the tax system, which hadn’t been reformed in a quarter-century.

“Since then, the Australian economy has lost its dynamism and competitive edge,” he said, adding it was encouraging the federal government had recently raised the topic of tax reform.