{"id":71241,"date":"2026-09-01T10:08:19","date_gmt":"2026-09-01T14:08:19","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-and-canada-manufacturing-pmis-beat-expectations-as-treasury-secretary-bessent-signals-major-shifts-in-global-trade-and-energy\/71241\/"},"modified":"2026-09-01T10:08:19","modified_gmt":"2026-09-01T14:08:19","slug":"us-and-canada-manufacturing-pmis-beat-expectations-as-treasury-secretary-bessent-signals-major-shifts-in-global-trade-and-energy","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-and-canada-manufacturing-pmis-beat-expectations-as-treasury-secretary-bessent-signals-major-shifts-in-global-trade-and-energy\/71241\/","title":{"rendered":"US and Canada Manufacturing PMIs Beat Expectations as Treasury Secretary Bessent Signals Major Shifts in Global Trade and Energy"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>US Manufacturing PMI for August held steady at 53.9<\/strong>, significantly outperforming the consensus estimate of <strong>53.2<\/strong> and signaling continued expansion despite rising supply chain pressures.<\/li>\n<li><strong>Treasury Secretary Scott Bessent<\/strong> announced a strategic pivot to <strong>bypass the Strait of Hormuz within two years<\/strong> via land-based pipelines, effectively neutralizing the waterway as a geopolitical chokepoint.<\/li>\n<li><strong>Elon Musk<\/strong> and other tech leaders at the <strong>G20 Technology Meeting<\/strong> emphasized the urgent need for <strong>non-Chinese energy sources<\/strong> to power the next generation of global data centers.<\/li>\n<li><strong>BYD Semiconductor<\/strong> has commenced mass production of advanced <strong>4D millimeter-wave radar chips<\/strong>, marking a significant milestone in China&#39;s automotive semiconductor self-sufficiency.<\/li>\n<li><strong>OpenAI (<a href=\"\/stock\/MSFT\">MSFT<\/a>) CEO Sam Altman<\/strong> personally lobbied California Governor Gavin Newsom regarding the <strong>SB 1119 youth AI safety bill<\/strong>, as the company balances innovation with emerging regulatory standards.<\/li>\n<\/ul>\n<h2>US and Canada Manufacturing Show Resilience<\/h2>\n<p>The <strong>S&amp;P Global US Manufacturing PMI<\/strong> remained unchanged at <strong>53.9<\/strong> in August, defying economist expectations of a slowdown to <strong>53.2<\/strong>. While the headline figure suggests robust health, the report highlighted &quot;cracks&quot; in the sector, including the weakest production growth since February and a 14th consecutive month of declining exports. Manufacturers are increasingly relying on <strong>domestic demand<\/strong> and inventory building to offset international headwinds and tariff uncertainties.<\/p>\n<p>In a similar trend, the <strong>S&amp;P Global Canada Manufacturing PMI<\/strong> printed at <strong>53.0<\/strong>, down slightly from July&#39;s <strong>53.5<\/strong> but still comfortably in expansion territory. Canadian firms reported the strongest job creation since late 2024, though manufacturers expressed growing concern over the impact of <strong>new 50% tariffs<\/strong> on $20 billion of exports to the US following the recent collapse of trade negotiations.<\/p>\n<h2>Treasury Secretary Bessent Outlines New Economic Doctrine<\/h2>\n<p>US Treasury Secretary <strong>Scott Bessent<\/strong> made waves at the G20 summit by declaring that the <strong>Strait of Hormuz<\/strong> will be rendered &quot;worthless&quot; within 24 months. The administration plans to shift oil transit to <strong>underground land pipelines<\/strong> to circumvent Iranian threats. Bessent also signaled a &quot;no tolerance&quot; policy toward Tehran, noting that while <strong>85%-90% of Iranian factories<\/strong> have the capacity to rebuild after recent disruptions, the US will continue to &quot;tighten the screws&quot; economically.<\/p>\n<p>Regarding China, Bessent clarified that the US does not seek a full &quot;decoupling&quot; but remains committed to <strong>derisking<\/strong>. He urged G20 members to reassess trade terms to address China&#39;s <strong>$1.2 trillion trade surplus<\/strong>, which he described as unsustainable for the global economy. Simultaneously, he identified a &quot;generational opportunity&quot; in the Western Hemisphere, specifically praising <strong>Argentina&#39;s<\/strong> economic reforms under President Javier Milei.<\/p>\n<h2>Tech Titans Tackle Energy and Regulation at G20<\/h2>\n<p>During a high-profile G20 tech meeting in North Carolina, <strong>Tesla (<a href=\"\/stock\/TSLA\">TSLA<\/a>)<\/strong> CEO <strong>Elon Musk<\/strong> warned that US companies must secure energy sources independent of China to sustain the massive power requirements of AI data centers. The meeting, which included <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> CEO Jensen Huang and <strong>OpenAI<\/strong> CEO Sam Altman, focused on the &quot;Carolina Principles&quot;\u2014a proposed regulatory framework favoring light-touch oversight to maintain a competitive edge over Chinese AI development.<\/p>\n<p>In California, <strong>Sam Altman<\/strong> reportedly engaged in direct talks with Governor Gavin Newsom over <strong>SB 1119<\/strong>, a bill aimed at implementing safety safeguards for children using AI chatbots. <strong>OpenAI<\/strong> has publicly supported the measure, seeking to establish a &quot;strong standard&quot; for youth safety in the absence of federal legislation, even as the company moves to ease some content restrictions for adult users.<\/p>\n<h2>BYD Advances Automotive Chip Sovereignty<\/h2>\n<p><strong>BYD Semiconductor<\/strong>, a subsidiary of BYD (<a href=\"\/stock\/BYDDY\">BYDDY<\/a>), has officially entered mass production of its <strong>Xuanji A3 4D millimeter-wave radar chips<\/strong>. This development is a critical step in reducing reliance on foreign chipmakers for autonomous driving hardware. The new chips are designed to provide high-resolution spatial data, helping vehicles navigate complex environments with greater precision than traditional radar systems.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways US Manufacturing PMI for August held steady at 53.9, significantly outperforming the consensus estimate of 53.2 and signaling [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"rank_math_schema_Article":[],"rank_math_focus_keyword":[],"rank_math_description":[],"financial_data_references":[],"stock_symbols_mentioned":[],"footnotes":""},"categories":[5012],"tags":[2264,4413,4817,4824,5310,5317,6287],"class_list":["post-71241","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-news","tag-byd","tag-elon-musk","tag-manufacturing","tag-geopolitics","tag-us-economy","tag-openai","tag-scott-bessent"],"_links":{"self":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/71241","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/comments?post=71241"}],"version-history":[{"count":0,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/71241\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media\/50383"}],"wp:attachment":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media?parent=71241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/categories?post=71241"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/tags?post=71241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}