South Korea’s top trade envoy says it may be possible to strike an “in-principle” trade deal with the United States by an August 1 deadline, but time is short to work out a detailed package seeking exemption from punishing US tariffs.

Trade Minister Yeo Han-koo, who held high-level talks with US officials last week, said South Korea may have to make some strategic decisions over its agriculture market as part of trade negotiations with the United States, the Yonhap News Agency said.

“I believe it’s possible to reach an agreement in principle in the US tariff negotiations, and then take some time to negotiate further,” the Newsis news agency quoted Yeo as telling local media reporters.

“Twenty days are not enough to come up with a perfect treaty that contains every detail.”

“We need to make a strategic judgment in the case of the agriculture and livestock sectors,” Yeo was quoted as saying, adding “sensitive” areas may need continued protection but some aspects may be considered as part of the overall framework.

There was “considerable progress” in the discussion with US officials over co-operation in key industrial sectors as part of the trade talks, Yeo was cited as saying, but Washington needed to cut industry-specific tariffs on autos and steel.

On Sunday US President Donald Trump told reporters “South Korea wants to make a deal right now”, without elaborating what would cement a deal or speculate on a time frame for getting negotiations done.

South Korea is in a race to reach a compromise trade pact in the hope of avoiding a 25 per cent tariff slapped on its exports by Trump that is set to kick in on August 1, after a late start to negotiations with a new president voted in last month.

South Korean officials held meetings in Washington after Trump’s announcement, hoping to negotiate cuts or exemptions from import duties on steel and autos.

South Korea earned a record $US55.6 billion ($A84.6 billion) trade surplus with the US in 2024, up 25 per cent from 2023, led by rising car exports.

The accidental release of government department advice which warned Labor was not going to meet its housing target and urged them to raise taxes, has not rattled the treasurer.

Independent advice from the Treasury department, which was unintentionally sent to the ABC, reportedly contained subheadings which said the federal government’s promise to build 1.2 million homes by 2029 “will not be met” and called for “additional revenue and spending reductions” to achieve a sustainable budget.

Though he acknowledged Treasury’s advice had been sent “in error”, Treasurer Jim Chalmers said such incidents could happen from time to time.

“I’m pretty relaxed about it to be honest,” he told reporters in Canberra on Monday.

“Treasury advises governments of both political persuasions – that advice can’t be always adequately captured in the subheadings.”

A 2025 report from the National Housing Supply and Affordability Council – another independent government advice body – in May warned Labor would fall short of its goal by about 300,000 dwellings.

It followed a report in March commissioned by the Property Council of Australia showing the government needed to build another 462,000 homes to meet its 2029 target.

Asked if the government regretted putting out a housing target, Dr Chalmers said his government needed to be ambitious.

“We’d rather have a big, ambitious, difficult target and work around the clock to meet it … than to continue the approach of our predecessors, which was to build too few homes,” he said.

The government has also attempted to address its bottom line by reining in spending on the National Disability Insurance Scheme and proposing an increased tax on super balances above $3 million.

Dr Chalmers has pledged to strengthen Australia’s economy ahead of a trip to South Africa, where he will meet with his counterparts from other G20 countries as they deal with “extreme global economic uncertainty”.

Economic ties with countries like Indonesia, Japan, the UK and Germany could be strengthened as leaders discuss capital flows, supply chains, critical minerals and issues within their own communities.

But domestically, one of the key focuses of Labor’s second-term economic agenda will be to boost productivity.

The agenda of an economic reform roundtable, to be held in August, has been finalised with Reserve Bank governor Michele Bullock set to kick off day one, Productivity Commission chair Danielle Wood to lead day two and Treasury secretary Jenny Wilkinson to head day three.

Opposition Leader Sussan Ley claimed the government was “ignoring some of the very levers that matter most” in the productivity puzzle.

While Dr Chalmers acknowledged he could not invite every industry, he said there would be many opportunities for people to contribute.

New Zealand’s government has released a plan aimed at doubling its international education market, which includes relaxing rules around international students working part-time.

Education Minister Erica Stanford says with international student enrolments steadily increasing since 2023, the government wants to “supercharge that growth track” to $NZ7.2 billion ($A6.58 billion) by 2034.

“In the short term, Education New Zealand will focus its promotional efforts on markets with the highest potential for growth,” she added.

New Zealand’s international education market is currently worth $NZ3.6 billion to the economy and the government would like to double that over the next decade and wants to see international student enrolments grow from 83,700 in 2024 to 105,000 in 2027 and 119,000 by 2034.

This comes as countries including Australia look to reduce foreign students due to the impact on house prices and the impact on the university experience for domestic students.

To encourage more foreign students to come to New Zealand, the government plans to increase the number of hours that eligible international students can work to 25 hours from 20 hours and extend which foreign students are allowed to work in New Zealand while studying.

The European Union says it will extend its suspension of countermeasures to US tariffs until early August and continue to press for a negotiated settlement as US President Donald Trump’s administration demanded more concessions from trading partners.

Trump said on Saturday he would impose a 30 per cent tariff on most imports from the EU and Mexico from August 1, adding to similar warnings for other countries and leaving them less than three weeks to hammer out framework deals that could lower the threatened tariff rate.

White House Economic Adviser Kevin Hassett said on Sunday that countries’ trade deal offers so far have not satisfied Trump and “the tariffs are real” without improvements.

“The president thinks that deals need to be better,” Hassett told US broadcaster ABC.

“And to basically put a line in the sand, he sent these letters out to folks, and we’ll see how it works out.”

Ursula von der Leyen, head of the EU’s executive Commission which handles trade policy for the 27 member states, said the bloc would maintain its two-track approach: keep talking and prepare retaliatory measures.

“We have always been very clear that we prefer a negotiated solution. This remains the case, and we will use the time that we have now,” von der Leyen told a press conference, adding that the bloc would extend its halt on countermeasures until August.

Von der Leyen’s decision to resist immediate retaliatory measures points to the European Commission’s desire to avoid a spiralling tit-for-tat escalation in the trade war while there remains a chance of negotiating an improved outcome.

German Chancellor Friedrich Merz on Sunday said he was “really committed” to finding a trade solution with the US, telling German public broadcaster ARD that he will work intensively on this with von der Leyen and French President Emmanuel Macron over the next two and a half weeks.

Asked about the effects of a 30 per cent US tariff on Germany, Merz said: “If that were to happen, we would have to postpone large parts of our economic policy efforts because it would interfere with everything and hit the German export industry to the core.”

The latest salvo from Trump and the question of how to respond may test the unity of EU member states, with France appearing to take a tougher line than Germany, the bloc’s industrial powerhouse whose economy leans heavily on exports.

Macron said the Commission needed more than ever to “assert the Union’s determination to defend European interests resolutely,” and that retaliation might need to include so-called anti-coercion instruments.

German Finance Minister Lars Klingbeil said on Sunday the EU should be ready to take firm action if talks failed.

“If a fair negotiated solution does not succeed, then we must take decisive countermeasures to protect jobs and companies in Europe,” Klingbeil, also vice chancellor in the ruling coalition, told Sueddeutsche Zeitung newspaper.

Prime Minister Anthony Albanese will raise Australian concerns over Chinese steel dumping as he urges industry leaders from both nations to work together to develop low-carbon steel production methods.

At a roundtable of Australian iron ore producers and Chinese steelmakers in Shanghai on Monday, Mr Albanese will call on China to address an oversupply of steel in the global market.

Excess Chinese steel production – the result of prolonged economic stimulus and weak domestic demand – has flooded the international market in recent years, squeezing producers in places such as the US and Europe, and precipitating allegations of dumping.

Australia imposed anti-dumping duties on steel imports from China but the World Trade Organization found they were improperly applied.

Mr Albanese knows Australian miners – and government revenue streams – are vulnerable to a downturn in the iron ore price.

“As both countries co-operate to advance decarbonisation, we also need to work together to address global excess steel capacity,” he will tell the roundtable on Monday morning.

“It is in both countries’ interests to ensure a sustainable and market-driven global steel sector.”

It’s hard to overstate the Australian economy’s dependence on the Chinese iron ore trade.

China is by far Australia’s largest export destination and iron ore is by far the largest component.

In 2024, Australia shipped $104.8 billion worth of the ferrous metal to China – about a sixth of the total value of exports to all trading partners.

In addition to Chinese oversupply, the iron ore industry faces another long-term challenge – climate change.

Turning iron into steel is a highly carbon-intensive process, accounting for seven to nine per cent of global emissions.

Efforts to create green steel are under way but scalability remains a challenge.

“Steel decarbonisation presents a range of challenges,” Mr Albanese will say.

“What we need are enabling policy environments, extensive investments in research to develop new technologies and collaboration across academia, industry and government.”

With leaders from iron ore giants Rio Tinto, BHP, Fortescue and Hancock in the room, Mr Albanese will pay tribute to the green steel projects those firms have under way.

Representatives from a host of Chinese steelmakers will also be present, including Qiu Yinfu, the general manager of Shougang, which is working with Rio on developing green technologies such as low-carbon sintering and blast furnace optimisation.

Later on Monday, Mr Albanese will deliver a speech to a high-level business lunch before flying to Beijing for the next leg of his six-day tour.

Australian red meat, rock lobster and red wine will be served at the lunch – three menu items that have found renewed favour in China after Beijing lifted trade sanctions on more than $20 billion worth of Australian imports.

Mr Albanese will again reiterate the importance of interpersonal relationships between Australian and Chinese business leaders and ongoing dialogue in maintaining positive relations.

“There is no fixed model for a stabilised relationship,” he will say.

“Our job is to make sure that we manage our relationship so that we can contribute to regional and global peace and prosperity.”

SpaceX has committed $US2 billion ($A3 billion) to xAI as part of a $US5 billion equity round as Elon Musk’s artificial intelligence startup races to compete with rival OpenAI, the Wall Street Journal reports.

The investment follows xAI’s merger with X and values the combined company at $US113 billion ($A172 billion), with the Grok chatbot now powering Starlink support and eyed for future integration into Tesla’s Optimus robots, the report said.

In response to a post on X about whether Tesla could also invest in xAI, Elon Musk said on Sunday “it would be great, but subject to board and shareholder approval” – without confirming or denying the Journal report on SpaceX’s investment plans in xAI.

SpaceX, xAI and Tesla did not immediately respond to requests for comment. 

Reuters could not immediately confirm the newspaper report.

Despite recent controversies involving Grok’s responses, Musk has called it “the smartest AI in the world” and xAI continues to spend heavily on model training and infrastructure. 

Rugby league might be his preferred sport, but the prime minister’s diplomatic juggling skills were on show as he stood aside a Socceroos legend in Shanghai.

Attempts to lure Chinese tourists to Australia and promote the two nations’ people-to-people links were overshadowed by questions about Australia’s participation in a potential future conflict with the Asian superpower.

US defence official Elbridge Colby, who is leading a review into the AUKUS security pact, has been pushing allies such as Australia to clarify what roles they would play in a possible war.

News of the suggestion made for an awkward proposition for Prime Minister Anthony Albanese on Sunday, the first full day of his six-day tour of China.

As China’s ambassador to Australia Xiao Qian watched on in stony silence, Mr Albanese played a straight bat to questions, reiterating Australia’s commitment to the status quo in Taiwan while maintaining support for the US-Australia alliance.

“It’s important that we have a consistent position, which Australia has had for a long period of time,” he told reporters at the headquarters of online booking giant Trip.com.

“Our aim of investing in our capability, and as well, investing in our relationships, is about advancing peace and security in our region.”

Mr Albanese oversaw the signing of a memorandum of understanding between Trip.com and Tourism Australia, and previewed an ad campaign to air in China starring local film star Yu Shi and Ruby the Roo, an animated kangaroo voiced by Rose Byrne.

China’s burgeoning middle class, armed with deep pockets and an appetite for travel, are key to Australia’s tourism industry, spending $9.2 billion in the 12 months to March.

While China is still Australia’s second-largest visiting tourist market, numbers have yet to recover to pre-COVID-19 pandemic levels.

The dramatic economic transformation China has undergone in recent decades was plain to see from Shanghai’s historic Bund promenade, where Mr Albanese strolled with ex-Socceroo Kevin Muscat, who now manages Chinese Super League outfit Shanghai Port FC.

Shanghai’s rainy season clouds parted early for the pair on Sunday morning, making way for a suffocating tropical heat that beat down on their discussion of the impact of football in fostering the two countries’ interpersonal connections.

Looking across the Huangpu River, a forest of newly-built skyscrapers in the Pudong district – surely constructed with no small quantity of Australian iron ore – gleamed in the sunlight.

“When I first came here twice in the 1990s, the area Pudong was very different indeed,” Mr Albanese said in a meeting with local Chinese Communist Party official Chen Jining.

“There were farms where there is now a great metropolis.

“The development we can see across the river is symbolic of the extraordinary development that China has seen in recent decades, lifting literally hundreds of millions of people out of poverty and creating economic benefit both for the people of China, but also increased economic engagement with countries like Australia.”

Mr Albanese will continue to emphasise the two nations’ business and sporting links during his six-day tour of China.

A keen tennis player, the prime minister will make an announcement about extending an Australian Open wildcard tournament when he visits the southwest city of Chengdu.

Sport built important people-to-people ties, as did business co-operation, Mr Albanese said.

“One in four of Australian jobs is dependent on our exports and overwhelmingly, by far the largest destination for Australian exports is right here in China,” he said.

Australia is rebuffing US calls to commit itself ahead of a future conflict with China as the prime minister declares the nation is already doing its fair share on defence.

Washington is pressing allies such as Australia and Japan to clarify what roles they would play in future wars, such as in Asia over the democratically governed island of Taiwan.

Elbridge Colby, a key Pentagon strategist, has confirmed the US is looking for allies to make clear their commitments in the event of potential conflicts.

“Of course, some among our allies might not welcome frank conversations,” he posted on social media platform X.

“But many … are seeing the urgent need to step up and are doing so.”

Prime Minister Anthony Albanese said Australia’s defence spending was about “advancing peace and security” in the region.

“Australia is through the AUKUS arrangements, providing considerable capacity, including increasing the capacity of the United States and the United Kingdom,” he told reporters during a visit to China on Sunday.

He maintained Australia wanted to see the status quo remain in place for Taiwan, which Beijing considers part of its territory.

Mr Colby is leading the US review of its nuclear submarine deal with Australia under the AUKUS security agreement amid concerns not enough boats are being produced.

Acting Defence Minister Pat Conroy said “sovereignty would always be prioritised” in the nation’s decision-making.

“The decision to commit Australian troops to a conflict will be made by the government of the day, not in advance,” he said.

Australian National University expert associate Jennifer Parker said it was unlikely any federal government would give a “blanket agreement” to what the nation’s contribution might be in the event of a conflict.

“What I suspect (the US is) probably asking for is a higher level of collaboration on war-gaming and scenario planning for various scenarios in the region,” she told AAP.

“That allows allies working together … to understand how each of the countries might respond.

“It is prudent for us to be sounding out what are the boundaries of the alliance relationship and what are the expectations.”

The US is among 19 countries participating in Exercise Talisman Sabre, which began on Sunday and will involve 30,000 defence force personnel.

Mr Conroy said the exercise was expected to be closely monitored by China after the Asian power observed the last four since 2017.

“We will obviously observe their activities and monitor their presence around Australia, but we’ll also adjust how we conduct those exercises,” he said.

“People observe these exercises to collect intelligence around procedures, around the electronic spectrum and the use of communications.”

Mr Albanese landed in Shanghai late on Saturday for a six-day tour that will focus on economic and security issues.

Defence analysts have flagged Mr Albanese will likely raise live-fire drills conducted by the Chinese military off Australia’s coast earlier in the year after Beijing failed to notify authorities ahead of time.

But the government has refused to say whether the prime minister will raise the issue when he meets with Chinese President Xi Jinping during his second visit since taking the top job.

The Chinese flotilla also circumnavigated the country in a projection of power.

Football and tourism have been the focus of the prime minister’s first full day in China as questions about Australia’s participation in a potential future conflict with the Asian superpower overshadow his six-day tour.

Former Socceroo Kevin Muscat joined Anthony Albanese on a morning walk along Shanghai’s historic Bund promenade on Sunday to promote the two nations’ interpersonal links.

Now coaching Shanghai Port FC, Muscat last year became the first Australian manager to lead a Chinese Super League team to the premiership.

The former midfield enforcer has brought over a host of Australian coaching staff, including fellow ex-Socceroo Ross Aloisi, in a sign of the deepening collaboration between Australia and China on the sporting field.

A keen tennis player, Mr Albanese will also make an announcement about extending an Australian Open wildcard tournament in the southwestern city of Chengdu later in the visit.

“One of the things about Australia and China that’s so important is we build people-to-people relations and we do that by the participation of Australians here,” the prime minister said.

“Whether it be here in football, or whether it be the lead-in tournament that’s going to take place in Chengdu for the Australian Open (or) the business relationships that we have here as well.”

Looking across the Huangpu River to the towering skyscrapers on the opposite bank, Mr Albanese reflected on the phenomenal economic transformation China had undergone in recent decades.

That boom has seen no small benefit flow to Australia, whose iron ore exports helped build the Shanghai skyline and filled the federal government’s coffers.

“When I first came here in the 1990s, the area Pudong was very different indeed,” Mr Albanese said in a meeting with local Chinese Communist Party official Chen Jining.

“There were farms where there is now a great metropolis.

“The development we can see across the river is symbolic of the extraordinary development that China has seen in recent decades, lifting literally hundreds of millions of people out of poverty and creating economic benefit for the people of China but also increased economic engagement with countries like Australia.”

A burgeoning Chinese middle class, with a new found appetite for travel, has flocked to Australia in recent decades though recent tourist numbers remain below pre-pandemic levels.

To promote Australia as a travel destination, the prime minister will oversee the signing of a memorandum of understanding between online travel giant Trip.com – which owns popular bookings sites such as Skyscanner – and Tourism Australia.

He will also unveil a new tourism campaign to air in China starring local film star Yu Shi and Ruby the Roo, an animated kangaroo voiced by Rose Byrne.

Amid the positive rhetoric around Sino-Australian relations, Mr Albanese is doing his best to dodge the US-sized elephant in the room.

Military tensions were highlighted by revelations that US defence strategist Elbridge Colby has been pushing Australia and Japan to clarify what role they would play in a potential conflict with China

But acting Defence Minister Pat Conroy on Sunday reiterated Australia’s long-established stance on whether it would join the US in a war.

“The decision to commit Australian troops to a conflict will be made by the government of the day, not in advance,” he told ABC’s Insiders program.

The unusual resilience of Australia’s jobs market is expected to continue in fresh data due out this week.

Despite expectations unemployment will rise over the course of 2025, forward indicators point to more jobs growth ahead of the Australian Bureau of Statistics’ labour force release on Thursday.

Economists predict the figures to show the unemployment rate held at a relatively low 4.1 per cent in June, while about 20,000 jobs are tipped to have been added to the economy.

NAB’s head of Australian economics, Gareth Spence, still expects the jobless rate to rise to 4.4 per cent by year end but signs point to a labour market still in rude health.

The bank’s monthly business survey, released last week, showed business conditions spiked nine index points while ANZ-Indeed job ads climbed to a 12-month high.

Despite the Reserve Bank surprising economists and traders by leaving rates on hold on Tuesday, Mr Spence does not expect a major negative impact on the economy, given three more cuts are still priced in by early next year.

“I think the focus for the RBA will be ensuring the labour market remains healthy going forward,” he told AAP.

“The timing of cuts is not super important. It’s more about where do they end up.”

Household spending has recovered slower than expected in the first half of 2025, as global uncertainty weighed on consumers and set back the handover from public to private demand as the main driver of economic growth.

Further cuts towards what the central bank sees as a more neutral cash rate will be needed to support consumption, Mr Spence said.

Another insight into household confidence levels will be revealed in the Westpac-Melbourne Institute consumer sentiment report on Tuesday.

On Wednesday, the ABS will release building activity data for the March quarter.

The number of dwellings that began construction in the last three months of the year fell 4.4 per cent to just under 42,000, well below the 60,000 a quarter needed to reach the national housing accord target of 1.2 million new homes over five years.

After trending upwards through the second half of 2024, building approvals have flatlined since January.

Wall Street investors meanwhile appear to have gone cold on US trade policy, with Meta Platforms weighing on the S&P 500 after Donald Trump intensified his tariff offensive against Canada. 

The president has ramped up his tariff assault, saying the US will impose a 35 per cent tariff on Canadian imports next month and plans are afoot to impose blanket tariffs of 15 per cent or 20 per cent on most other trading partners.

The S&P 500 declined 0.33 per cent to end the session at 6,259.75 points, the Nasdaq was down 0.22 per cent to 20,585.53 points and the Dow Jones Industrial Average fell 0.63 per cent to 44,371.51 points.

Australian share futures dropped 13 points, or 0.15 per cent, to 6,847.

The benchmark S&P/ASX200 index on Friday finished down 9.1 points, or 0.11 per cent, to 8,580.1, while the broader All Ordinaries dipped 6.4 points, or 0.07 per cent, to 8,820.3.