Key Takeaways
- President Trump demanded immediate gasoline price cuts and ordered a Department of Justice (DOJ) investigation into potential price gouging by major oil companies.
- A temporary suspension of duties on Moroccan phosphate fertilizer was authorized via executive order to provide relief to U.S. farmers facing high input costs.
- Japan's unemployment rate held steady at 2.5% in May, meeting market expectations, while the jobs-to-applications ratio dipped slightly to 1.17.
- Crude oil prices have plummeted 36% from their May peak, yet retail gasoline prices have only declined by 14%, fueling administrative frustration.
Trump Issues Ultimatum to Gasoline Retailers
President Donald Trump issued a stern warning to gasoline retailers on Monday, demanding they slash prices at the pump immediately. In a series of statements, the President accused "Big Oil" of pocketing savings from falling crude costs rather than passing them to consumers. He specifically directed the Department of Justice to launch an investigation into the pricing practices of major firms, including Exxon Mobil (XOM) and Chevron (CVX).
The administration’s frustration stems from a widening gap between raw material costs and retail prices. While U.S. benchmark WTI crude has dropped significantly to approximately $70.45 per barrel, the national average for gasoline remains near $3.93 per gallon. Trump has indicated that prices should ideally be closer to $2.50 per gallon following the de-escalation of tensions in the Middle East and the reopening of the Strait of Hormuz.
Relief for Agriculture: Moroccan Fertilizer Duties Suspended
In a move aimed at bolstering the agricultural sector, the White House announced the temporary suspension of countervailing duties on phosphate fertilizer imported from Morocco. This executive action follows intense lobbying from groups like the American Soybean Association, who cited tight margins and record-high input costs. Previously, duties on Moroccan phosphate—largely supplied by the OCP Group—ranged between 16% and 17%.
The suspension is expected to increase domestic supply and encourage competitive pricing for essential nutrients used in corn and soybean production. This policy shift occurs as the U.S. International Trade Commission continues a broader five-year "sunset review" of these duties. Domestic producers such as The Mosaic Company (MOS) have historically supported these tariffs, arguing they protect the U.S. industry from unfair foreign subsidies.
Japan Labor Market Shows Resilience Amid Tight Supply
Economic data released late Monday showed Japan’s unemployment rate remained unchanged at 2.5% for the month of May. The figure aligned perfectly with economist estimates and previous readings, signaling continued stability in the world's fourth-largest economy. The number of unemployed persons in Japan has remained relatively flat as the country continues to grapple with a shrinking workforce and aging population.
However, the jobs-to-applications ratio saw a marginal decline to 1.17, slightly missing the consensus estimate of 1.18. This ratio indicates there are 117 available jobs for every 100 seekers, reflecting a labor market that remains historically tight despite the slight softening. Analysts suggest that while demand for labor remains robust, the slight dip in the ratio may reflect a cautious hiring sentiment in the manufacturing and retail sectors.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.