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The US government’s recent decision to impose a 25 per cent tariff on Indian goods has ignited tensions between the two nations, but India’s response so far has been measured. Despite the headline-grabbing nature of the tariff order, the Indian government remains focused on strategic adjustments rather than retaliatory measures. Commerce Minister Piyush Goyal has assured that the government will safeguard the interests of India’s exporters, particularly small entrepreneurs and farmers. The Ministry of External Affairs reaffirmed that the broader US-India relationship remains resilient, with short-term trade disputes unlikely to derail the larger partnership.<h2>The tariff impact and India’s response</h2>The 25 per cent tariff, effective from August 1, affects several key Indian export sectors, including textiles, gems and jewellery, auto components, and seafood. However, products like pharmaceuticals, IT services, and high-end engineering goods remain relatively insulated, with the Indian government taking steps to mitigate the adverse impact on affected industries.India’s export strategy now hinges on diversifying into new markets and improving competitiveness in regions like the UK, the EU, and ASEAN. The country recently signed a Free Trade Agreement (FTA) with the UK, and negotiations with the EU are in their final stages, with a deal expected before the end of the year. These markets are seen as crucial in offsetting the impact of tariffs in the US. Additionally, India is exploring emerging markets such as Saudi Arabia, Vietnam, Mexico, and Ethiopia to boost exports in key sectors.The Indian government is particularly focused on industries facing direct tariff challenges, such as textiles and engineering goods, Mint&nbsp;reported. Plans are underway to ramp up exports to new destinations, including Sao Tome, Greece, and Lithuania, for sectors like engineering, pharmaceuticals, and electronics. Such diversification will reduce India’s dependency on the US and shield its export sector from potential trade shocks.<h2>Long-term trade dynamics and strategic shifts</h2>While the 25 per cent tariff is a significant challenge for Indian exporters, the economic impact is expected to be limited in the long run. India’s annual exports to the US, amounting to approximately $87 billion, constitute only a small fraction of the country’s GDP. Analysts predict a modest impact on India’s overall growth, with an estimated dip of 0.2 per cent to 0.4 per cent in GDP. However, sectors that rely heavily on the US market, such as textiles and gems and jewellery, could see sharper declines in exports.The broader trade tensions reflect deeper strategic disagreements between India and the US. Trump’s administration has been critical of India’s economic policies, including its agricultural market and defence procurement practices. As India stands firm on its sovereignty, particularly regarding food security and defence, the country’s approach remains focused on diversifying its export base and protecting long-term growth interests.In the face of tariffs, India’s resilience and ongoing efforts to expand its footprint in new markets position it well for navigating this trade storm. Despite the disruption caused by the tariffs, India’s economic agility remains a key strength, and its export diversification strategy is already showing signs of potential success.&nbsp;(With input from agencies)

The US tariff affects several key Indian export sectors, including textiles, gems and jewellery, and auto components. However, products like pharma, IT services, and high-end engineering goods remain relatively insulated, with the Centre taking steps to mitigate the impact on the industries.

The US government’s recent decision to impose a 25 per cent tariff on Indian goods has ignited tensions between the two nations, but India’s response so far has been measured. Despite the headline-grabbing nature of the tariff order, the Indian government remains focused on strategic adjustments rather than retaliatory measures. Commerce Minister Piyush Goyal has assured that the government will safeguard the interests of India’s exporters, particularly small entrepreneurs and farmers. The Ministry of External Affairs reaffirmed that the broader US-India relationship remains resilient, with short-term trade disputes unlikely to derail the larger partnership. The tariff impact and India’s response The 25 per cent tariff, effective from August 1, affects several key Indian export sectors, including textiles, gems and jewellery, auto components, and seafood. However, products like pharmaceuticals, IT services, and high-end engineering goods remain relatively insulated, with the Indian government taking steps to mitigate the adverse impact on affected industries. India’s export strategy now hinges on diversifying into new markets and improving competitiveness in regions like the UK, the EU, and ASEAN. The country recently signed a Free Trade Agreement (FTA) with the UK, and negotiations with the EU are in their final stages, with a deal expected before the end of the year. These markets are seen as crucial in offsetting the impact of tariffs in the US. Additionally, India is exploring emerging markets such as Saudi Arabia, Vietnam, Mexico, and Ethiopia to boost exports in key sectors. The Indian government is particularly focused on industries facing direct tariff challenges, such as textiles and engineering goods, Mint reported. Plans are underway to ramp up exports to new destinations, including Sao Tome, Greece, and Lithuania, for sectors like engineering, pharmaceuticals, and electronics. Such diversification will reduce India’s dependency on the US and shield its export sector from potential trade shocks. Long-term trade dynamics and strategic shifts While the 25 per cent tariff is a significant challenge for Indian exporters, the economic impact is expected to be limited in the long run. India’s annual exports to the US, amounting to approximately $87 billion, constitute only a small fraction of the country’s GDP. Analysts predict a modest impact on India’s overall growth, with an estimated dip of 0.2 per cent to 0.4 per cent in GDP. However, sectors that rely heavily on the US market, such as textiles and gems and jewellery, could see sharper declines in exports. The broader trade tensions reflect deeper strategic disagreements between India and the US. Trump’s administration has been critical of India’s economic policies, including its agricultural market and defence procurement practices. As India stands firm on its sovereignty, particularly regarding food security and defence, the country’s approach remains focused on diversifying its export base and protecting long-term growth interests. In the face of tariffs, India’s resilience and ongoing efforts to expand its footprint in new markets position it well for navigating this trade storm. Despite the disruption caused by the tariffs, India’s economic agility remains a key strength, and its export diversification strategy is already showing signs of potential success. (With input from agencies)

The US tariff affects several key Indian export sectors, including textiles, gems and jewellery, and auto components. However, products like pharma, IT services, and high-end engineering goods remain relatively insulated, with the Centre taking steps to mitigate the impact on the industries.

India’s strategic shift: Diversifying exports amid US tariff pressure

In a landmark ruling, a federal jury in Miami has found Tesla partially responsible for a fatal crash involving its Autopilot system, ordering the company to pay $329 million in damages. The lawsuit stemmed from a tragic 2019 incident in the Florida Keys, where a Tesla Model S, operating on autopilot, struck a pedestrian, Naibel Benavides Leon, 22, and her boyfriend, Dillon Angulo, severely injuring him. Tesla’s Autopilot, a driver-assistance feature designed to assist with steering, acceleration, and braking, was found to have failed in the crash. Plaintiffs argued that the software should have alerted the driver and activated the brakes to prevent the accident, which resulted in Benavides Leon's death and Angulo’s lifelong injuries. The jury ruled that Tesla was partly at fault, with the company ordered to pay $129 million in compensatory damages and $200 million in punitive damages.<h2>Elon Musk and Tesla's legal strategy under scrutiny</h2>The verdict represents a significant setback for Elon Musk and Tesla, which has long championed self-driving technology as a cornerstone of its future. Tesla has vowed to appeal the decision, calling the verdict “wrong” and arguing that it would harm efforts to develop life-saving technology. Tesla contended that the driver, George McGee, was responsible for the accident due to his distracted driving—he had dropped his phone and was not paying attention to the road. According to Tesla, the driver had his foot on the accelerator, which overrode the Autopilot system.&nbsp;The company maintained that the Autopilot software functioned as designed and that the crash was a result of human error rather than a malfunction of its technology. However, plaintiffs’ attorneys, including Brett Schreiber, argued that Tesla misrepresented the capabilities of its Autopilot system. Schreiber accused the company of promoting Autopilot as a fully self-driving system despite its limitations, saying that it was designed primarily for highways but was widely used on roads it was not intended for. “Tesla’s lies turned our roads into test tracks for their fundamentally flawed technology,” Schreiber stated.<h2>Implications for Tesla's future and regulatory oversight</h2>The ruling has raised significant questions about the legal and safety implications of self-driving technology. Unlike previous cases, where Tesla settled out of court, this lawsuit went to trial, bringing the company’s practices under intense scrutiny. It is the first federal case to find Tesla liable for an accident involving its self-driving software.The case also brings renewed focus on Tesla’s transparency and marketing claims. Experts have criticised the company for overstating the capabilities of its technology, which, despite being labelled as “Autopilot” and “Full Self-Driving,” still requires the driver to remain alert and ready to take control. Critics argue that these names mislead consumers about the system's actual abilities.This case also comes at a critical time for Tesla as it prepares to launch its driverless taxi service. Musk has promised thousands of robotaxis on US roads by next year, a major part of the company’s plans for the future. However, this trial has cast a shadow over Tesla's claims about the safety and reliability of its self-driving technology.As Tesla continues to push forward with its self-driving ambitions, it is likely to face increasing pressure from regulators. The US National Highway Traffic Safety Administration (NHTSA) has already raised concerns about Autopilot's safety, with a recent report citing a “critical safety gap” in the system. The case may also prompt lawmakers and safety regulators to reconsider how self-driving vehicles are monitored and held accountable for accidents.&nbsp;(With inputs from agencies)

The verdict represents a significant setback for Elon Musk and Tesla, which has long championed self-driving technology as a cornerstone of its future. Tesla has vowed to appeal the decision, calling the verdict wrong and arguing that it would harm efforts to develop life-saving technology.

In a landmark ruling, a federal jury in Miami has found Tesla partially responsible for a fatal crash involving its Autopilot system, ordering the company to pay $329 million in damages. The lawsuit stemmed from a tragic 2019 incident in the Florida Keys, where a Tesla Model S, operating on autopilot, struck a pedestrian, Naibel Benavides Leon, 22, and her boyfriend, Dillon Angulo, severely injuring him. Tesla’s Autopilot, a driver-assistance feature designed to assist with steering, acceleration, and braking, was found to have failed in the crash. Plaintiffs argued that the software should have alerted the driver and activated the brakes to prevent the accident, which resulted in Benavides Leon's death and Angulo’s lifelong injuries. The jury ruled that Tesla was partly at fault, with the company ordered to pay $129 million in compensatory damages and $200 million in punitive damages. Elon Musk and Tesla's legal strategy under scrutiny The verdict represents a significant setback for Elon Musk and Tesla, which has long championed self-driving technology as a cornerstone of its future. Tesla has vowed to appeal the decision, calling the verdict “wrong” and arguing that it would harm efforts to develop life-saving technology. Tesla contended that the driver, George McGee, was responsible for the accident due to his distracted driving—he had dropped his phone and was not paying attention to the road. According to Tesla, the driver had his foot on the accelerator, which overrode the Autopilot system. The company maintained that the Autopilot software functioned as designed and that the crash was a result of human error rather than a malfunction of its technology. However, plaintiffs’ attorneys, including Brett Schreiber, argued that Tesla misrepresented the capabilities of its Autopilot system. Schreiber accused the company of promoting Autopilot as a fully self-driving system despite its limitations, saying that it was designed primarily for highways but was widely used on roads it was not intended for. “Tesla’s lies turned our roads into test tracks for their fundamentally flawed technology,” Schreiber stated. Implications for Tesla's future and regulatory oversight The ruling has raised significant questions about the legal and safety implications of self-driving technology. Unlike previous cases, where Tesla settled out of court, this lawsuit went to trial, bringing the company’s practices under intense scrutiny. It is the first federal case to find Tesla liable for an accident involving its self-driving software. The case also brings renewed focus on Tesla’s transparency and marketing claims. Experts have criticised the company for overstating the capabilities of its technology, which, despite being labelled as “Autopilot” and “Full Self-Driving,” still requires the driver to remain alert and ready to take control. Critics argue that these names mislead consumers about the system's actual abilities. This case also comes at a critical time for Tesla as it prepares to launch its driverless taxi service. Musk has promised thousands of robotaxis on US roads by next year, a major part of the company’s plans for the future. However, this trial has cast a shadow over Tesla's claims about the safety and reliability of its self-driving technology. As Tesla continues to push forward with its self-driving ambitions, it is likely to face increasing pressure from regulators. The US National Highway Traffic Safety Administration (NHTSA) has already raised concerns about Autopilot's safety, with a recent report citing a “critical safety gap” in the system. The case may also prompt lawmakers and safety regulators to reconsider how self-driving vehicles are monitored and held accountable for accidents. (With inputs from agencies)

The verdict represents a significant setback for Elon Musk and Tesla, which has long championed self-driving technology as a cornerstone of its future. Tesla has vowed to appeal the decision, calling the verdict wrong and arguing that it would harm efforts to develop life-saving technology.

Tesla found partly liable for fatal 2019 crash involving autopilot

The cracks in the US labour market are widening. Job creation has slowed to a crawl, unemployment is rising, and economists are warning that stagflation, the dreaded mix of slow growth and persistent inflation, may be creeping back into the American economy. According to the US Labor Department’s latest employment report, released Friday, only 73,000 nonfarm jobs were added in July, well below market expectations of 110,000. Making matters worse, job growth for May and June was slashed by a staggering 258,000 jobs, in what economists are calling a clear sign of deterioration.&nbsp;As per Reuters, this is the weakest three-month job growth streak since the pandemic era. The revisions bring May’s jobs gain down to just 19,000 and June’s to a mere 14,000.<h2>A market in pain&nbsp;</h2>Christopher Rupkey, chief economist at FWDBONDS, put it bluntly and said, “The labor market is not rolling over, but it is badly wounded and may yet bring about a reversal in the US economy’s fortunes." Speaking to Reuters, Rupkey added, “The door to a Fed rate cut in September just got opened a crack wider.”&nbsp;Indeed, with unemployment rising to 4.2 per cent in July, up from 4.1 per cent in June, pressure is mounting on the Federal Reserve to act. Fed Chair Jerome Powell, who left interest rates unchanged this week at 4.25%–4.50%, had warned markets not to expect a cut anytime soon. But this latest report may force a rethink. Markets are now pricing in a September rate cut, and further confirmation could come when the Bureau of Labor Statistics releases its benchmark payrolls revision next month.<h2>Tariffs, immigration, and Trump’s economic gamble</h2>The report offers a sobering snapshot of the human impact of President Donald Trump’s trade and immigration policies. On Thursday, Trump slapped 35 per cent tariffs on Canadian goods and imposed steep duties on dozens of other trade partners. These measures, aimed at protecting domestic industries, are now raising input costs and fuelling inflation, while making it harder for firms to hire and invest.&nbsp;At the same time, mass immigration raids and workforce crackdowns are thinning out the labour pool. In July, the number of foreign-born workers fell by 341,000, as per Reuters. That, along with an uptick in retirements, pushed labour force participation down for a third straight month to 62.2 per cent. “Without the participation rate decline, the unemployment rate would have added another tenth to a solid 4.3%,” said Michael Gapen, chief US economist at Morgan Stanley, as quoted by Reuters. “Immigration restrictions have and will continue to have a chilling effect on participation and will continue to add to downward pressure on the unemployment rate.”<h2>Behind the numbers</h2>The pain isn’t spread evenly. Healthcare and social assistance led job growth with 73,300 new positions, while retail and financial services added modest gains. But manufacturing, wholesale trade, and professional services all lost jobs. There are more part-time workers, more long-term unemployed, and a growing sense of uncertainty among businesses.&nbsp;The median duration of unemployment rose to 10.2 weeks. And as per the data, even government jobs are vanishing, federal employment dropped by 12,000 last month, and is down 84,000 since January. The recent Supreme Court ruling clearing the way for mass federal layoffs only adds to the anxiety. Trump has already fired Erika McEntarfer, the Commissioner of the Bureau of Labor Statistics, accusing her, without evidence, of falsifying jobs data, Reuters reported.<h2>A chilling climate for business</h2>Tariff uncertainty is making it harder for companies to plan. Economists warn that despite recent trade deals, the effective US tariff rate is now the highest since the 1930s, according to Reuters. Domestic demand, meanwhile, is slowing. The second quarter saw the weakest pace of consumption in 2.5 years. “One gets the sense that due to trade and immigration policy the domestic economy and labor market are paying a price,” said Joseph Brusuelas, chief economist at RSM US. “Stagflation is the best description of the domestic economy as we enter the second half of the year.”<h2>What’s next?</h2>With Wall Street trading lower, the dollar falling, and Treasury yields dropping, the message from markets is clear: the US economy is entering dangerous territory. While Trump continues to push his aggressive economic agenda, and the Fed hesitates, millions of American workers may soon feel the cost, in pink slips and shrinking paychecks.&nbsp;The August jobs report, due September 5, may be the most important economic data point of the year. It could not only determine the Fed’s next move but shape the trajectory of the 2025 election-year economy.&nbsp;(With inputs from the agencies)&nbsp;

Trump tariffs and immigration crackdowns are weighing heavily on the US labour market, with job creation slowing and participation falling, raising fresh questions about the economy’s direction ahead of the 2025 election.

The cracks in the US labour market are widening. Job creation has slowed to a crawl, unemployment is rising, and economists are warning that stagflation, the dreaded mix of slow growth and persistent inflation, may be creeping back into the American economy. According to the US Labor Department’s latest employment report, released Friday, only 73,000 nonfarm jobs were added in July, well below market expectations of 110,000. Making matters worse, job growth for May and June was slashed by a staggering 258,000 jobs, in what economists are calling a clear sign of deterioration. As per Reuters, this is the weakest three-month job growth streak since the pandemic era. The revisions bring May’s jobs gain down to just 19,000 and June’s to a mere 14,000. A market in pain Christopher Rupkey, chief economist at FWDBONDS, put it bluntly and said, “The labor market is not rolling over, but it is badly wounded and may yet bring about a reversal in the US economy’s fortunes." Speaking to Reuters, Rupkey added, “The door to a Fed rate cut in September just got opened a crack wider.” Indeed, with unemployment rising to 4.2 per cent in July, up from 4.1 per cent in June, pressure is mounting on the Federal Reserve to act. Fed Chair Jerome Powell, who left interest rates unchanged this week at 4.25%–4.50%, had warned markets not to expect a cut anytime soon. But this latest report may force a rethink. Markets are now pricing in a September rate cut, and further confirmation could come when the Bureau of Labor Statistics releases its benchmark payrolls revision next month. Tariffs, immigration, and Trump’s economic gamble The report offers a sobering snapshot of the human impact of President Donald Trump’s trade and immigration policies. On Thursday, Trump slapped 35 per cent tariffs on Canadian goods and imposed steep duties on dozens of other trade partners. These measures, aimed at protecting domestic industries, are now raising input costs and fuelling inflation, while making it harder for firms to hire and invest. At the same time, mass immigration raids and workforce crackdowns are thinning out the labour pool. In July, the number of foreign-born workers fell by 341,000, as per Reuters. That, along with an uptick in retirements, pushed labour force participation down for a third straight month to 62.2 per cent. “Without the participation rate decline, the unemployment rate would have added another tenth to a solid 4.3%,” said Michael Gapen, chief US economist at Morgan Stanley, as quoted by Reuters. “Immigration restrictions have and will continue to have a chilling effect on participation and will continue to add to downward pressure on the unemployment rate.” Behind the numbers The pain isn’t spread evenly. Healthcare and social assistance led job growth with 73,300 new positions, while retail and financial services added modest gains. But manufacturing, wholesale trade, and professional services all lost jobs. There are more part-time workers, more long-term unemployed, and a growing sense of uncertainty among businesses. The median duration of unemployment rose to 10.2 weeks. And as per the data, even government jobs are vanishing, federal employment dropped by 12,000 last month, and is down 84,000 since January. The recent Supreme Court ruling clearing the way for mass federal layoffs only adds to the anxiety. Trump has already fired Erika McEntarfer, the Commissioner of the Bureau of Labor Statistics, accusing her, without evidence, of falsifying jobs data, Reuters reported. A chilling climate for business Tariff uncertainty is making it harder for companies to plan. Economists warn that despite recent trade deals, the effective US tariff rate is now the highest since the 1930s, according to Reuters. Domestic demand, meanwhile, is slowing. The second quarter saw the weakest pace of consumption in 2.5 years. “One gets the sense that due to trade and immigration policy the domestic economy and labor market are paying a price,” said Joseph Brusuelas, chief economist at RSM US. “Stagflation is the best description of the domestic economy as we enter the second half of the year.” What’s next? With Wall Street trading lower, the dollar falling, and Treasury yields dropping, the message from markets is clear: the US economy is entering dangerous territory. While Trump continues to push his aggressive economic agenda, and the Fed hesitates, millions of American workers may soon feel the cost, in pink slips and shrinking paychecks. The August jobs report, due September 5, may be the most important economic data point of the year. It could not only determine the Fed’s next move but shape the trajectory of the 2025 election-year economy. (With inputs from the agencies)

US job growth stalls and unemployment rises, fuelling stagflation fears and putting pressure on the Fed to consider a rate cut.

US job growth slows to a crawl, labour market weakens

Despite US President Donald Trump's newly imposed penalties on top of a 25 per cent tariff for its trade relations with Russia, Indian oil refiners, as per reports, continue to source oil from Russian suppliers, suggest reports. The Indian oil refiners' decision is reportedly based on the price, grade of crude, inventories, logistics, and other economic factors and has nothing to do with the prevailing political atmosphere. Previously, on Friday (Aug 1), speaking on similar lines, MEA spokesperson Randhir Jaiswal, while speaking about media reports that some Indian oil firms had paused Russian imports, said he was not aware of any such developments. He noted that India's broad approach to energy sourcing requirements depends on "what is available in the market and the prevailing global situation."<h2>Why is Russian oil in the headlines, and what does India have to do with it?</h2>On Thursday (Jul 31), Trump signed an executive order imposing new tariffs on dozens of its trade partners. This included a 25 per cent tariff rate and a penalty on India. The tariffs come amid growing criticism from Washington over India's continued imports of discounted Russian oil, despite Western sanctions related to the Ukraine war.However, as per an ANI report citing sources, despite US' pressure, India continues to source oil from Russian suppliers. As per the report, this is because Moscow is the world's second-largest crude oil producer with an output of around 9.5 mb/d (nearly 10 per cent of global demand). It is also the second-largest exporter, shipping about 4.5 mb/d of crude and 2.3 mb/d of refined products. In March 2022, amid fears of Russian oil getting pushed out of the market, Brent crude prices soared to US $137 per barrel."In this challenging environment, India, as the world’s third-largest energy consumer with 85% crude oil import dependence, strategically adapted its sourcing to secure affordable energy while fully adhering to international norms," said the news agency's unnamed sources. They added that Russian oil has never been sanctioned. Instead, the nation was subjected to a G7/EU price cap mechanism that is designed to limit revenue while making sure global supplies flowed uninterrupted. Calling India's purchases legitimate and in line with international norms, they added that "Had India not absorbed discounted Russian crude combined with OPEC+ production cuts of 5.86 mb/d, global oil prices could have surged well beyond the March 2022 peak of US$137/bbl, intensifying inflationary pressures worldwide".This, they said, means that India's energy decisions, while being guided by the nation's interests, also contributed positively to global energy stability and kept oil flowing, prices stable, and markets balanced, while fully respecting international frameworks.

Despite the US' pressure, India continues to source oil from Russian suppliers. As per the report, among other things, this is because Moscow is the world's second-largest crude oil producer and also the second-largest exporter.

Despite US President Donald Trump's newly imposed penalties on top of a 25 per cent tariff for its trade relations with Russia, Indian oil refiners, as per reports, continue to source oil from Russian suppliers, suggest reports. The Indian oil refiners' decision is reportedly based on the price, grade of crude, inventories, logistics, and other economic factors and has nothing to do with the prevailing political atmosphere. Previously, on Friday (Aug 1), speaking on similar lines, MEA spokesperson Randhir Jaiswal, while speaking about media reports that some Indian oil firms had paused Russian imports, said he was not aware of any such developments. He noted that India's broad approach to energy sourcing requirements depends on "what is available in the market and the prevailing global situation." Why is Russian oil in the headlines, and what does India have to do with it? On Thursday (Jul 31), Trump signed an executive order imposing new tariffs on dozens of its trade partners. This included a 25 per cent tariff rate and a penalty on India. The tariffs come amid growing criticism from Washington over India's continued imports of discounted Russian oil, despite Western sanctions related to the Ukraine war. However, as per an ANI report citing sources, despite US' pressure, India continues to source oil from Russian suppliers. As per the report, this is because Moscow is the world's second-largest crude oil producer with an output of around 9.5 mb/d (nearly 10 per cent of global demand). It is also the second-largest exporter, shipping about 4.5 mb/d of crude and 2.3 mb/d of refined products. In March 2022, amid fears of Russian oil getting pushed out of the market, Brent crude prices soared to US $137 per barrel. "In this challenging environment, India, as the world’s third-largest energy consumer with 85% crude oil import dependence, strategically adapted its sourcing to secure affordable energy while fully adhering to international norms," said the news agency's unnamed sources. They added that Russian oil has never been sanctioned. Instead, the nation was subjected to a G7/EU price cap mechanism that is designed to limit revenue while making sure global supplies flowed uninterrupted. Calling India's purchases legitimate and in line with international norms, they added that "Had India not absorbed discounted Russian crude combined with OPEC+ production cuts of 5.86 mb/d, global oil prices could have surged well beyond the March 2022 peak of US$137/bbl, intensifying inflationary pressures worldwide". This, they said, means that India's energy decisions, while being guided by the nation's interests, also contributed positively to global energy stability and kept oil flowing, prices stable, and markets balanced, while fully respecting international frameworks.

Despite the US' pressure, India continues to source oil from Russian suppliers. As per the report, among other things, this is because Moscow is the world's second-largest crude oil producer and also the second-largest exporter.

India defies Trump’s oil penalties, continues Russian imports: Report

Southeast Asian countries are breathing a sigh of relief after the US unveiled its revised tariff schedule, slashing the initially feared higher rates and offering a somewhat more manageable outcome. Though US President Donald Trump’s tariffs will still hit the region’s key exports hard, the adjustments are seen as less severe than expected, especially for nations like Singapore and Malaysia. The final tariff rates, which range from 10 per cent to 40 per cent depending on the country, were unveiled late on July 31, setting the stage for a new phase in the ongoing global trade tensions.For most of Southeast Asia, the revised tariffs are more tolerable than the original threat of punitive measures that could have harmed their economies. Singapore, which had previously feared a 25 per cent tariff on its goods, is set to face a baseline tariff of just 10 per cent. Prime Minister Lawrence Wong expressed that this outcome, while still impactful, is manageable for the city-state, which maintains a robust trade surplus with the US and stands to lose relatively little. The 10 per cent rate is far lower than the 19 per cent imposed on other regional heavyweights, including Malaysia, Indonesia, Thailand, and the Philippines. This adjustment, while significant, spares Singapore from the worst-case scenario of even higher tariffs.<h2>How do things stand now?</h2>While the 10 per cent tariff will affect Singapore’s export-driven economy, the damage is expected to be less severe than the rates imposed on neighbouring countries. The situation could have been far worse, with countries like Laos and Myanmar facing tariffs as high as 40 per cent. Both economies are much smaller than their regional peers, but these tariffs still pose a significant burden. Myanmar, which continued its controversial military junta rule amid Western sanctions, will face particularly heavy consequences despite a modest $734 million trade relationship with the US.The situation remains complex, and for many nations in the region, it’s still too early to gauge the full economic impact. Vietnam, for instance, had initially been targeted with a 46 per cent tariff but successfully negotiated this down to 20 per cent. However, Vietnam’s status as a primary beneficiary of trade from China means that its exporters may still be vulnerable to additional scrutiny as the US targets goods transshipped from China. The move to impose a 40 per cent tariff on such goods adds another layer of uncertainty, especially for countries with complex supply chains that include Chinese components. Despite this, Vietnam’s position as a key trading hub in the region makes it unlikely that its exports will be completely sidelined.For Thailand and Malaysia, the new tariff levels represent a much-needed boost to their manufacturing sectors, especially in industries like electronics, textiles, and garments. Thailand’s economy, which is heavily reliant on exports, stands to benefit from the 19 per cent tariff rate, down from the threatened 36 per cent. Thailand’s finance minister, Pichai Chunhavajira, welcomed the move, saying it would help restore the country’s competitiveness. Similarly, Malaysia’s government expressed satisfaction with its tariff reduction to 19 per cent, down from 25 per cent. Both nations are poised to maintain their standing in the global market, ensuring they are not placed at a disadvantage relative to each other.Cambodia, too, was granted some respite as its tariff was cut to 19 per cent from the much higher 49 per cent, a decision that saved its garment industry, its largest economic driver, from potentially disastrous consequences. The reduction has been hailed as a critical lifeline for Cambodia, with its trade negotiators, including Deputy Prime Minister Sun Chanthol, declaring the outcome to be a major win for the country’s manufacturing sector.<h2>The effect on Southeast Asia’s exports</h2>Yet, while many Southeast Asian countries can take comfort in the adjustments, not all have escaped unscathed. Laos and Myanmar’s high tariffs could dampen their export-driven economies further, and analysts fear these nations will be unable to cope with such significant trade barriers. Myanmar, in particular, could face considerable economic strain as it attempts to deal with the fallout of the sanctions and the global trade restrictions imposed by the US.Despite the relative success of Southeast Asian negotiations, US officials continue to leave the door open for further tariffs, particularly in sectors where national security is a concern. For instance, semiconductor and pharmaceutical industries in some countries are still under investigation by the US government for potential national security risks. While some analysts see this as a negotiating tactic, others worry about further disruptions to supply chains that already face significant strain from ongoing geopolitical tensions.For the region’s larger economies, like Singapore and Malaysia, the 10-20 per cent tariff range presents new challenges but also a kind of stability, providing some clarity after months of uncertainty. As many businesses adjust their strategies in response to the new tariffs, the challenge for Southeast Asia will be to navigate these shifting rules while still maintaining strong economic ties with the US.So, while Southeast Asia has avoided the worst-case scenario of even steeper tariffs, the economic challenges posed by Trump’s tariff strategy remain. The region's economies will likely feel the effects over the coming months and years, particularly as global supply chains continue to shift and countries adjust to the new rules. Though the region has secured more favourable tariff terms than expected, the longer-term impacts will depend on how effectively governments can adapt to a world where tariffs and trade relations remain in constant flux.&nbsp;(With inputs from agencies)

While many Southeast Asian countries can take comfort in the adjustments, not all have escaped unscathed. Laos and Myanmar’s high tariffs could dampen their export-driven economies further, and analysts fear these nations will be unable to cope with such significant trade barriers.

Southeast Asian countries are breathing a sigh of relief after the US unveiled its revised tariff schedule, slashing the initially feared higher rates and offering a somewhat more manageable outcome. Though US President Donald Trump’s tariffs will still hit the region’s key exports hard, the adjustments are seen as less severe than expected, especially for nations like Singapore and Malaysia. The final tariff rates, which range from 10 per cent to 40 per cent depending on the country, were unveiled late on July 31, setting the stage for a new phase in the ongoing global trade tensions. For most of Southeast Asia, the revised tariffs are more tolerable than the original threat of punitive measures that could have harmed their economies. Singapore, which had previously feared a 25 per cent tariff on its goods, is set to face a baseline tariff of just 10 per cent. Prime Minister Lawrence Wong expressed that this outcome, while still impactful, is manageable for the city-state, which maintains a robust trade surplus with the US and stands to lose relatively little. The 10 per cent rate is far lower than the 19 per cent imposed on other regional heavyweights, including Malaysia, Indonesia, Thailand, and the Philippines. This adjustment, while significant, spares Singapore from the worst-case scenario of even higher tariffs. How do things stand now? While the 10 per cent tariff will affect Singapore’s export-driven economy, the damage is expected to be less severe than the rates imposed on neighbouring countries. The situation could have been far worse, with countries like Laos and Myanmar facing tariffs as high as 40 per cent. Both economies are much smaller than their regional peers, but these tariffs still pose a significant burden. Myanmar, which continued its controversial military junta rule amid Western sanctions, will face particularly heavy consequences despite a modest $734 million trade relationship with the US. The situation remains complex, and for many nations in the region, it’s still too early to gauge the full economic impact. Vietnam, for instance, had initially been targeted with a 46 per cent tariff but successfully negotiated this down to 20 per cent. However, Vietnam’s status as a primary beneficiary of trade from China means that its exporters may still be vulnerable to additional scrutiny as the US targets goods transshipped from China. The move to impose a 40 per cent tariff on such goods adds another layer of uncertainty, especially for countries with complex supply chains that include Chinese components. Despite this, Vietnam’s position as a key trading hub in the region makes it unlikely that its exports will be completely sidelined. For Thailand and Malaysia, the new tariff levels represent a much-needed boost to their manufacturing sectors, especially in industries like electronics, textiles, and garments. Thailand’s economy, which is heavily reliant on exports, stands to benefit from the 19 per cent tariff rate, down from the threatened 36 per cent. Thailand’s finance minister, Pichai Chunhavajira, welcomed the move, saying it would help restore the country’s competitiveness. Similarly, Malaysia’s government expressed satisfaction with its tariff reduction to 19 per cent, down from 25 per cent. Both nations are poised to maintain their standing in the global market, ensuring they are not placed at a disadvantage relative to each other. Cambodia, too, was granted some respite as its tariff was cut to 19 per cent from the much higher 49 per cent, a decision that saved its garment industry, its largest economic driver, from potentially disastrous consequences. The reduction has been hailed as a critical lifeline for Cambodia, with its trade negotiators, including Deputy Prime Minister Sun Chanthol, declaring the outcome to be a major win for the country’s manufacturing sector. The effect on Southeast Asia’s exports Yet, while many Southeast Asian countries can take comfort in the adjustments, not all have escaped unscathed. Laos and Myanmar’s high tariffs could dampen their export-driven economies further, and analysts fear these nations will be unable to cope with such significant trade barriers. Myanmar, in particular, could face considerable economic strain as it attempts to deal with the fallout of the sanctions and the global trade restrictions imposed by the US. Despite the relative success of Southeast Asian negotiations, US officials continue to leave the door open for further tariffs, particularly in sectors where national security is a concern. For instance, semiconductor and pharmaceutical industries in some countries are still under investigation by the US government for potential national security risks. While some analysts see this as a negotiating tactic, others worry about further disruptions to supply chains that already face significant strain from ongoing geopolitical tensions. For the region’s larger economies, like Singapore and Malaysia, the 10-20 per cent tariff range presents new challenges but also a kind of stability, providing some clarity after months of uncertainty. As many businesses adjust their strategies in response to the new tariffs, the challenge for Southeast Asia will be to navigate these shifting rules while still maintaining strong economic ties with the US. So, while Southeast Asia has avoided the worst-case scenario of even steeper tariffs, the economic challenges posed by Trump’s tariff strategy remain. The region's economies will likely feel the effects over the coming months and years, particularly as global supply chains continue to shift and countries adjust to the new rules. Though the region has secured more favourable tariff terms than expected, the longer-term impacts will depend on how effectively governments can adapt to a world where tariffs and trade relations remain in constant flux. (With inputs from agencies)

While many Southeast Asian countries can take comfort in the adjustments, not all have escaped unscathed. Laos and Myanmar’s high tariffs could dampen their export-driven economies further, and analysts fear these nations will be unable to cope with such significant trade barriers.

Southeast Asia dodges worst-case US tariff impact, but challenges remain

Thousands of export license applications by US companies, including those for sensitive technology shipments to China, are stuck in limbo due to turmoil at the US Department of Commerce. A report by Reuters&nbsp;says that dysfunction at the Bureau of Industry and Security (BIS), the agency tasked with approving these licenses, has caused significant delays, leaving companies and industries in uncertainty. The most high-profile case involves Nvidia’s efforts to ship artificial intelligence (AI) chips to China. Despite assurances from Commerce Secretary Howard Lutnick and other officials in July that licenses for Nvidia’s H20 chip would be granted, reports suggest no licenses have been issued yet.&nbsp;Nvidia had hoped to begin deliveries soon after receiving confirmation in mid-July, with billions of dollars' worth of AI chip orders at stake. The delay in approval is the latest example of the agency’s increasingly unpredictable and slow license process. The agency’s paralysis has left many US companies waiting for approval on a wide range of goods, from semiconductor manufacturing equipment to advanced sensors. The situation has been compounded by internal leadership issues, an exodus of staff, and poor communication between the BIS and industry representatives, according to several sources familiar with the matter.<h2>Internal turmoil and leadership challenges at BIS</h2>The BIS, which plays a crucial role in enforcing export restrictions to safeguard national security, has become nearly paralysed due to internal turmoil. The report by Reuters suggests that Jeffrey Kessler, who became BIS undersecretary in March, has micromanaged the bureau and failed to engage in adequate communication with industry stakeholders. At a staff meeting shortly after his appointment, Kessler reportedly instructed BIS employees to limit communication with companies and to log all meetings in a spreadsheet. Additionally, reports say that obtaining approval from Kessler’s office for meetings with other government agencies has also become increasingly difficult.The lack of clear communication has raised concerns within both the US government and the private sector.&nbsp;The current backlog of license applications is the longest in more than three decades, according to one US official. In fiscal year 2023, the BIS processed 37,943 export license applications, taking an average of 38 days to process each request. However, the agency has struggled to keep up with the increasing volume of applications, especially those involving sensitive technologies.<h2>Frustration among exporters and delayed regulations</h2>Industry insiders have expressed growing frustration over the delays. Sean Stein, president of the US-China Business Council, noted that many sectors are seeing no movement on their license applications, including semiconductor manufacturing equipment valued at billions of dollars. As the delays persist, he warned that Chinese companies are turning to alternative suppliers, threatening to erode US market share.Some companies have also reported delays in getting approvals for exports to other regions, such as Latin America. Jim Anzalone, president of Compliance Assurance, a trade consultancy, stated that he has experienced delays in exporting sensors, radars, and sonar. While some exports to allied countries continue to be processed, the overall situation has raised alarms.&nbsp;The Commerce Department has also delayed the publication of several important regulatory changes. In May, the agency announced it would rescind a Biden administration rule restricting where AI chips can be exported but has yet to follow through with that change. Other regulatory updates, such as one expanding export restrictions to subsidiaries of banned companies, remain unpublished.Staff turnover has also exacerbated the crisis. Important vacancies, such as export control officers based in China, have yet to be filled, and key staff members have resigned, including Dan Clutch, the acting director of the BIS Office of Export Enforcement.

The current backlog of license applications is the longest in more than three decades, according to one US official. In fiscal year 2023, the BIS processed 37,943 export license applications. However, the agency has struggled to keep up with the increasing volume of applications.

Thousands of export license applications by US companies, including those for sensitive technology shipments to China, are stuck in limbo due to turmoil at the US Department of Commerce. A report by Reuters says that dysfunction at the Bureau of Industry and Security (BIS), the agency tasked with approving these licenses, has caused significant delays, leaving companies and industries in uncertainty. The most high-profile case involves Nvidia’s efforts to ship artificial intelligence (AI) chips to China. Despite assurances from Commerce Secretary Howard Lutnick and other officials in July that licenses for Nvidia’s H20 chip would be granted, reports suggest no licenses have been issued yet. Nvidia had hoped to begin deliveries soon after receiving confirmation in mid-July, with billions of dollars' worth of AI chip orders at stake. The delay in approval is the latest example of the agency’s increasingly unpredictable and slow license process. The agency’s paralysis has left many US companies waiting for approval on a wide range of goods, from semiconductor manufacturing equipment to advanced sensors. The situation has been compounded by internal leadership issues, an exodus of staff, and poor communication between the BIS and industry representatives, according to several sources familiar with the matter. Internal turmoil and leadership challenges at BIS The BIS, which plays a crucial role in enforcing export restrictions to safeguard national security, has become nearly paralysed due to internal turmoil. The report by Reuters suggests that Jeffrey Kessler, who became BIS undersecretary in March, has micromanaged the bureau and failed to engage in adequate communication with industry stakeholders. At a staff meeting shortly after his appointment, Kessler reportedly instructed BIS employees to limit communication with companies and to log all meetings in a spreadsheet. Additionally, reports say that obtaining approval from Kessler’s office for meetings with other government agencies has also become increasingly difficult. The lack of clear communication has raised concerns within both the US government and the private sector. The current backlog of license applications is the longest in more than three decades, according to one US official. In fiscal year 2023, the BIS processed 37,943 export license applications, taking an average of 38 days to process each request. However, the agency has struggled to keep up with the increasing volume of applications, especially those involving sensitive technologies. Frustration among exporters and delayed regulations Industry insiders have expressed growing frustration over the delays. Sean Stein, president of the US-China Business Council, noted that many sectors are seeing no movement on their license applications, including semiconductor manufacturing equipment valued at billions of dollars. As the delays persist, he warned that Chinese companies are turning to alternative suppliers, threatening to erode US market share. Some companies have also reported delays in getting approvals for exports to other regions, such as Latin America. Jim Anzalone, president of Compliance Assurance, a trade consultancy, stated that he has experienced delays in exporting sensors, radars, and sonar. While some exports to allied countries continue to be processed, the overall situation has raised alarms. The Commerce Department has also delayed the publication of several important regulatory changes. In May, the agency announced it would rescind a Biden administration rule restricting where AI chips can be exported but has yet to follow through with that change. Other regulatory updates, such as one expanding export restrictions to subsidiaries of banned companies, remain unpublished. Staff turnover has also exacerbated the crisis. Important vacancies, such as export control officers based in China, have yet to be filled, and key staff members have resigned, including Dan Clutch, the acting director of the BIS Office of Export Enforcement.

The current backlog of license applications is the longest in more than three decades, according to one US official. In fiscal year 2023, the BIS processed 37,943 export license applications. However, the agency has struggled to keep up with the increasing volume of applications.

US Commerce Bureau faces backlog of export applications, including critical technology

Meta Platforms is accelerating its push to bring in outside investors to help finance its growing artificial intelligence infrastructure. In a regulatory filing disclosed on Thursday, the tech giant revealed plans to offload $2.04 billion worth of data centre assets, as part of a broader strategy to co-develop facilities powering its next-generation AI systems.&nbsp;The move reflects a notable shift in how Big Tech firms fund infrastructure, as the cost of building and operating data centres for generative AI continues to soar.<h2>Meta eyes co-development model amid rising AI costs</h2>As per Reuters, Meta, the parent company of Facebook, Instagram, and WhatsApp has reclassified a major portion of its data centre infrastructure, including land and construction-in-progress, as “held-for-sale.” The company expects these assets to be contributed to a third-party venture within 12 months, aimed at co-developing AI data centres.&nbsp;Meta valued the reclassified assets at the lower of their carrying amounts or fair value less selling costs, and did not record a loss. The company disclosed in its filing that total held-for-sale assets stood at $3.26 billion as of June 30, according to Reuters.<h2>CFO confirms search for financial partners</h2>In an earnings call earlier this week, Meta Chief Financial Officer Susan Li confirmed the company is “exploring ways to work with financial partners to co-develop data centers,” as quoted by Reuters. While Meta still intends to fund most of its capital expenditure internally, Li said some infrastructure projects could attract “significant external financing”, offering greater flexibility should infrastructure needs evolve.&nbsp;Li clarified there were no finalised transactions yet, but the language in the regulatory filing suggests that plans are advancing, Reuters reported.<h2>Zuckerberg’s AI ambitions drive spending surge</h2>Meta CEO Mark Zuckerberg has consistently championed the company’s aggressive push into artificial intelligence, with plans to build massive “AI superclusters” to support artificial general intelligence (AGI) development. “Just one of these covers a significant part of the footprint of Manhattan,” Zuckerberg said this week, underscoring the sheer physical and financial scale of the company’s AI infrastructure projects, as quoted by Reuters.&nbsp;In line with this strategy, Meta on Wednesday raised the lower end of its full-year capital expenditure guidance by $2 billion, bringing the updated forecast to $66 billion to $72 billion. The increased spending comes as Meta reported stronger-than-expected ad sales, driven in part by AI-enhanced ad targeting and content delivery, as per Reuters.<h2>Silicon Valley’s funding model is evolving</h2>Meta’s asset sale strategy underscores a broader trend in the tech industry. As per Reuters, major companies like Meta are now rethinking the traditional model of self-funding infrastructure, particularly for AI development. The construction and operation of advanced data centres demands huge upfront investment in real estate, energy, semiconductors, and cooling systems.&nbsp;While Meta declined to comment on the specific asset sale plans when approached by Reuters, the company’s disclosures make clear its willingness to share the financial burden of its long-term AI ambitions. With investor enthusiasm for AI infrastructure still running high, Meta’s move could set a new precedent, changing how trillion-dollar tech firms scale their AI operations in the years to come.&nbsp;(With inputs from the agencies)&nbsp;

Meta reclassifies $3.26 billion in assets for sale as it seeks external partners to co finance AI data centers, reflecting a shift in Silicon Valley AI investment strategy.

Meta Platforms is accelerating its push to bring in outside investors to help finance its growing artificial intelligence infrastructure. In a regulatory filing disclosed on Thursday, the tech giant revealed plans to offload $2.04 billion worth of data centre assets, as part of a broader strategy to co-develop facilities powering its next-generation AI systems. The move reflects a notable shift in how Big Tech firms fund infrastructure, as the cost of building and operating data centres for generative AI continues to soar. Meta eyes co-development model amid rising AI costs As per Reuters, Meta, the parent company of Facebook, Instagram, and WhatsApp has reclassified a major portion of its data centre infrastructure, including land and construction-in-progress, as “held-for-sale.” The company expects these assets to be contributed to a third-party venture within 12 months, aimed at co-developing AI data centres. Meta valued the reclassified assets at the lower of their carrying amounts or fair value less selling costs, and did not record a loss. The company disclosed in its filing that total held-for-sale assets stood at $3.26 billion as of June 30, according to Reuters. CFO confirms search for financial partners In an earnings call earlier this week, Meta Chief Financial Officer Susan Li confirmed the company is “exploring ways to work with financial partners to co-develop data centers,” as quoted by Reuters. While Meta still intends to fund most of its capital expenditure internally, Li said some infrastructure projects could attract “significant external financing”, offering greater flexibility should infrastructure needs evolve. Li clarified there were no finalised transactions yet, but the language in the regulatory filing suggests that plans are advancing, Reuters reported. Zuckerberg’s AI ambitions drive spending surge Meta CEO Mark Zuckerberg has consistently championed the company’s aggressive push into artificial intelligence, with plans to build massive “AI superclusters” to support artificial general intelligence (AGI) development. “Just one of these covers a significant part of the footprint of Manhattan,” Zuckerberg said this week, underscoring the sheer physical and financial scale of the company’s AI infrastructure projects, as quoted by Reuters. In line with this strategy, Meta on Wednesday raised the lower end of its full-year capital expenditure guidance by $2 billion, bringing the updated forecast to $66 billion to $72 billion. The increased spending comes as Meta reported stronger-than-expected ad sales, driven in part by AI-enhanced ad targeting and content delivery, as per Reuters. Silicon Valley’s funding model is evolving Meta’s asset sale strategy underscores a broader trend in the tech industry. As per Reuters, major companies like Meta are now rethinking the traditional model of self-funding infrastructure, particularly for AI development. The construction and operation of advanced data centres demands huge upfront investment in real estate, energy, semiconductors, and cooling systems. While Meta declined to comment on the specific asset sale plans when approached by Reuters, the company’s disclosures make clear its willingness to share the financial burden of its long-term AI ambitions. With investor enthusiasm for AI infrastructure still running high, Meta’s move could set a new precedent, changing how trillion-dollar tech firms scale their AI operations in the years to come. (With inputs from the agencies)

Meta plans to sell over $2 billion in data center assets to co-develop AI infrastructure, signaling a new funding approach amid surging AI costs.

Meta to offload $2 billion in data centre assets to fund AI infrastructure costs

US stock markets experienced a steep decline on August 1, driven by disappointing jobs data, a rising threat of tariffs, and concerns over a potential economic slowdown. The Dow Jones Industrial Average lost 542.40 points, or 1.23 per cent, closing at 43,588.58. The S&amp;P 500 dropped by 1.60 per cent, finishing at 6,238.01, while the Nasdaq Composite saw the largest slide, shedding 2.24 per cent to close at 20,650.13. The sell-off also spilled over to small-cap stocks, with the Russell 2000 index tumbling 2.08 per cent, amplifying the market’s downward momentum.&nbsp;The latest data from the US Labor Department revealed that nonfarm payrolls grew by just 73,000 in July, significantly below the 100,000 forecast by economists. The report also showed downward revisions for the previous two months, with June’s job growth revised to a mere 14,000 from an earlier estimate of 147,000, and May’s numbers also revised sharply lower. These weak employment figures raised concerns about the strength of the labour market, which had previously been seen as a pillar of economic stability.<h2>Tariff concerns weigh on market sentiment</h2>Further adding to investor jitters, US President Donald Trump announced a new wave of tariffs that will affect 66 countries, including major trade partners like Canada and the European Union. These tariffs, which range from 10 per cent to 41 per cent, are expected to exacerbate inflationary pressures and dampen global trade. The announcement further undermined investor confidence, as concerns over the economic impact of such tariffs compounded the negative sentiment sparked by the weak jobs report.The new duties, effective from August 7, come at a time when the global economy is already grappling with inflationary pressures and slowdowns in key sectors. In particular, Canada, one of the US’s largest trading partners, will now face a 35 per cent tariff, up from the previous 25 per cent. Markets reacted with unease, with investors scrambling to adjust their portfolios in anticipation of these new trade barriers.<h2>Federal Reserve faces tough decisions amid economic uncertainty</h2>The combination of weak jobs data and escalating tariff concerns has raised the likelihood of the Federal Reserve acting sooner than expected to cut interest rates in an effort to stimulate the economy. Futures markets now price in an 86 per cent chance of a rate cut in September, up from much lower expectations earlier in the week. This sharp shift in market sentiment followed comments from the Fed signalling that it might hold off on rate cuts, despite economic pressures.Treasuries also saw increased demand as investors sought safer assets, pushing US Treasury yields lower. The yield on two-year notes, a closely watched indicator of interest rate expectations, plunged by 22 basis points to 3.74 per cent. Meanwhile, the dollar weakened against major currencies, with the dollar index falling 1.37 per cent, signalling growing concerns over the US economic outlook.With trade uncertainty on the rise and economic indicators flashing warning signs, investors are increasingly worried that the US may be heading toward a recession. As market volatility increases, both corporate earnings and broader economic activity are likely to be scrutinised in the coming weeks, with the Federal Reserve facing tough decisions on how to respond to a cooling labour market and rising inflationary pressures.&nbsp;(With inputs from agencies)

US markets reacted with unease, with investors scrambling to adjust their portfolios in anticipation of these new trade barriers and weak employment figures raised concerns about the strength of the labour market, which had previously been seen as a pillar of economic stability.

US stock markets experienced a steep decline on August 1, driven by disappointing jobs data, a rising threat of tariffs, and concerns over a potential economic slowdown. The Dow Jones Industrial Average lost 542.40 points, or 1.23 per cent, closing at 43,588.58. The S&P 500 dropped by 1.60 per cent, finishing at 6,238.01, while the Nasdaq Composite saw the largest slide, shedding 2.24 per cent to close at 20,650.13. The sell-off also spilled over to small-cap stocks, with the Russell 2000 index tumbling 2.08 per cent, amplifying the market’s downward momentum. The latest data from the US Labor Department revealed that nonfarm payrolls grew by just 73,000 in July, significantly below the 100,000 forecast by economists. The report also showed downward revisions for the previous two months, with June’s job growth revised to a mere 14,000 from an earlier estimate of 147,000, and May’s numbers also revised sharply lower. These weak employment figures raised concerns about the strength of the labour market, which had previously been seen as a pillar of economic stability. Tariff concerns weigh on market sentiment Further adding to investor jitters, US President Donald Trump announced a new wave of tariffs that will affect 66 countries, including major trade partners like Canada and the European Union. These tariffs, which range from 10 per cent to 41 per cent, are expected to exacerbate inflationary pressures and dampen global trade. The announcement further undermined investor confidence, as concerns over the economic impact of such tariffs compounded the negative sentiment sparked by the weak jobs report. The new duties, effective from August 7, come at a time when the global economy is already grappling with inflationary pressures and slowdowns in key sectors. In particular, Canada, one of the US’s largest trading partners, will now face a 35 per cent tariff, up from the previous 25 per cent. Markets reacted with unease, with investors scrambling to adjust their portfolios in anticipation of these new trade barriers. Federal Reserve faces tough decisions amid economic uncertainty The combination of weak jobs data and escalating tariff concerns has raised the likelihood of the Federal Reserve acting sooner than expected to cut interest rates in an effort to stimulate the economy. Futures markets now price in an 86 per cent chance of a rate cut in September, up from much lower expectations earlier in the week. This sharp shift in market sentiment followed comments from the Fed signalling that it might hold off on rate cuts, despite economic pressures. Treasuries also saw increased demand as investors sought safer assets, pushing US Treasury yields lower. The yield on two-year notes, a closely watched indicator of interest rate expectations, plunged by 22 basis points to 3.74 per cent. Meanwhile, the dollar weakened against major currencies, with the dollar index falling 1.37 per cent, signalling growing concerns over the US economic outlook. With trade uncertainty on the rise and economic indicators flashing warning signs, investors are increasingly worried that the US may be heading toward a recession. As market volatility increases, both corporate earnings and broader economic activity are likely to be scrutinised in the coming weeks, with the Federal Reserve facing tough decisions on how to respond to a cooling labour market and rising inflationary pressures. (With inputs from agencies)

US markets reacted with unease, with investors scrambling to adjust their portfolios in anticipation of these new trade barriers and weak employment figures raised concerns about the strength of the labour market, which had previously been seen as a pillar of economic stability.

US markets dive as weak jobs data and new tariffs trigger sell-off

US manufacturing activity contracted for the fifth straight month in July, with factory employment hitting its lowest level in over five years, according to new data from the Institute for Supply Management (ISM). The ISM’s Manufacturing Purchasing Managers' Index (PMI) fell to 48.0 in July from 49.0 in June, signalling continued contraction in the sector. A PMI reading below 50 indicates that manufacturing activity is shrinking, which is a critical signal for the economy since manufacturing makes up about 10 per cent of US GDP.The sharp decline in factory employment was a major contributor to the weak PMI reading. The ISM’s manufacturing employment index dropped to 43.4, its lowest level since July 2020. This marks a significant slowdown in hiring as companies face rising raw material costs, partly driven by tariffs imposed earlier in the year. The survey highlighted an “acceleration of headcount reductions due to uncertain near- to mid-term demand,” suggesting that manufacturers are focusing more on cost control rather than expansion.<h2>Weak demand and persistent tariff challenges</h2>The contraction in manufacturing was exacerbated by declining demand for factory goods, which has contributed to six consecutive months of reduced new orders. The new orders sub-index rose slightly to 47.1 from 46.4, but it remained in contraction territory. The overall outlook for the sector remains bleak, with the ISM pointing to an ongoing slowdown in production. While the production index rose to 51.4 from 50.3, indicating a slight improvement in output, many industries continued to report lower demand, leading to staff reductions.In addition to the ongoing demand challenges, rising tariffs on imported raw materials have increased the cost pressures on manufacturers. Prices for factory inputs remained high in July, though the pace of increase slowed. The ISM’s supplier deliveries index fell to 49.3 from 54.2, the first time since November 2022 that it dropped below 50, indicating improvements in delivery times. Despite the easing in delivery delays, the price gauge for input costs remained elevated at 64.8, down from 69.7 in June.<h2>Uncertainty ahead as tariffs impact inflation</h2>The ongoing tariff-driven inflation continues to be a major concern for manufacturers. Government data released earlier this week showed that goods prices in June rose at their fastest rate in five months, with economists predicting that the rise in goods inflation would persist through the second half of 2025. While the tariffs imposed by US President Donald Trump have not increased in intensity, producers remain anxious about potential new duties on crucial imports such as pharmaceuticals, semiconductors, and critical minerals, which could further disrupt supply chains.The manufacturing slump, marked by falling employment and production slowdowns, signals a tough road ahead for the US economy, with uncertain demand and rising input costs making it increasingly difficult for companies to navigate the challenges of a volatile global trade environment.&nbsp;(With inputs from agencies)

The contraction in manufacturing was exacerbated by declining demand for factory goods, which has contributed to six consecutive months of reduced new orders. The new orders sub-index rose slightly to 47.1 from 46.4, but it remained in contraction territory.

US manufacturing activity contracted for the fifth straight month in July, with factory employment hitting its lowest level in over five years, according to new data from the Institute for Supply Management (ISM). The ISM’s Manufacturing Purchasing Managers' Index (PMI) fell to 48.0 in July from 49.0 in June, signalling continued contraction in the sector. A PMI reading below 50 indicates that manufacturing activity is shrinking, which is a critical signal for the economy since manufacturing makes up about 10 per cent of US GDP. The sharp decline in factory employment was a major contributor to the weak PMI reading. The ISM’s manufacturing employment index dropped to 43.4, its lowest level since July 2020. This marks a significant slowdown in hiring as companies face rising raw material costs, partly driven by tariffs imposed earlier in the year. The survey highlighted an “acceleration of headcount reductions due to uncertain near- to mid-term demand,” suggesting that manufacturers are focusing more on cost control rather than expansion. Weak demand and persistent tariff challenges The contraction in manufacturing was exacerbated by declining demand for factory goods, which has contributed to six consecutive months of reduced new orders. The new orders sub-index rose slightly to 47.1 from 46.4, but it remained in contraction territory. The overall outlook for the sector remains bleak, with the ISM pointing to an ongoing slowdown in production. While the production index rose to 51.4 from 50.3, indicating a slight improvement in output, many industries continued to report lower demand, leading to staff reductions. In addition to the ongoing demand challenges, rising tariffs on imported raw materials have increased the cost pressures on manufacturers. Prices for factory inputs remained high in July, though the pace of increase slowed. The ISM’s supplier deliveries index fell to 49.3 from 54.2, the first time since November 2022 that it dropped below 50, indicating improvements in delivery times. Despite the easing in delivery delays, the price gauge for input costs remained elevated at 64.8, down from 69.7 in June. Uncertainty ahead as tariffs impact inflation The ongoing tariff-driven inflation continues to be a major concern for manufacturers. Government data released earlier this week showed that goods prices in June rose at their fastest rate in five months, with economists predicting that the rise in goods inflation would persist through the second half of 2025. While the tariffs imposed by US President Donald Trump have not increased in intensity, producers remain anxious about potential new duties on crucial imports such as pharmaceuticals, semiconductors, and critical minerals, which could further disrupt supply chains. The manufacturing slump, marked by falling employment and production slowdowns, signals a tough road ahead for the US economy, with uncertain demand and rising input costs making it increasingly difficult for companies to navigate the challenges of a volatile global trade environment. (With inputs from agencies)

The contraction in manufacturing was exacerbated by declining demand for factory goods, which has contributed to six consecutive months of reduced new orders. The new orders sub-index rose slightly to 47.1 from 46.4, but it remained in contraction territory.

US manufacturing continues slump amid tariff impact; factory employment hits 5-year low

The US dollar suffered its sharpest intraday fall against major currencies in over a year on Friday, after a surprisingly weak jobs report intensified market speculation that the Federal Reserve may soon pivot towards cutting interest rates, despite earlier hawkish guidance from Chair Jerome Powell.&nbsp;According to Reuters, the US economy added just 73,000 jobs in July, well below economists’ expectations of 110,000, while June’s job gain was revised sharply down, from 147,000 to a mere 14,000. The unemployment rate ticked up to 4.2 per cent, in line with forecasts, but up from 4.1 per cent in June. “It’s worse than anyone expected, and the kicker is that downward revision for the prior month too,” said Helen Given, director of trading at Money USA, as quoted by Reuters. The disappointing labour data triggered a broad-based selloff in the dollar, as traders swiftly re-evaluated the Fed’s rate trajectory.<h2>Dollar sees steepest drop since January 2023</h2>The dollar index, which tracks the greenback against a basket of currencies including the euro and yen, plunged 1.23 per cent to 98.80, its lowest since mid-June. The euro surged 1.37 per cent to $1.1571, on track for its biggest one-day gain since April.&nbsp;The Japanese yen rallied sharply, with the dollar dropping 2.23 per cent to 147.37 yen, marking its biggest daily fall against the yen since January 2023.<h2>Traders now betting on September Fed cut</h2>Despite Powell’s warning earlier in the week that the Fed was in “no rush” to ease rates amid concerns about President Donald Trump’s inflationary tariff policy, Friday’s jobs data triggered a swift shift in market sentiment. As per Reuters, Fed funds futures traders are now pricing in 63 basis points of rate cuts by year-end, up from 34 basis points just a day earlier. The first cut is now widely expected in September, depending on the next employment report.&nbsp;“The labour market is clearly, clearly cooling. That’s going to raise the importance of that September figure as well,” Given told Reuters, noting that Powell had already signalled the Fed would wait for two more jobs reports before making its decision. The August employment data is due on September 5, just days before the Fed’s next policy meeting on September 16–17.<h2>Trump sacks statistics chief, imposes more tariffs</h2>In a dramatic response to the dismal jobs print, President Donald Trump on Friday ordered the firing of Erika McEntarfer, commissioner of the Bureau of Labor Statistics, as reported by Reuters. Trump also announced new tariffs on dozens of trade partners, contributing to early gains in the dollar before the jobs report reversed the trend. Notably, Switzerland now faces a 39 per cent tariff, with Trump accusing Swiss pharma firms of overcharging American consumers.&nbsp;The Swiss franc, initially weaker on tariff concerns, later recovered as the dollar weakened, with the greenback falling 0.9 per cent to 0.805 francs. Earlier in the session, the dollar had hit 0.8171, its highest since June 23.<h2>Currency market turmoil spreads</h2>Other major currencies also saw large swings. The Canadian dollar strengthened 0.43 per cent to C$1.38, even after Canada was hit with a 35 per cent tariff, more than the 25 per cent previously threatened.&nbsp;The yen, which had been under pressure for most of the week after the Bank of Japan signalled a dovish stance, rebounded sharply after Finance Minister Katsunobu Kato said officials were “alarmed” by rapid currency movements. In the digital asset market, Bitcoin dropped 2.65 per cent to $113,432, as investors pulled back from riskier assets in response to uncertainty over Fed policy and global trade tensions.<h2>All eyes on September Fed rate cut&nbsp;</h2>While some economists had projected dollar strength in the second half of 2025, Friday’s data cast fresh doubt on those forecasts. Jonas Goltermann, deputy chief markets economist at Capital Economics, said in a note that a recessionary scenario could flip the outlook entirely. “Plainly, that now looks less probable; in a recession scenario the dollar is likely to weaken against lower-yielding currencies such as the yen and the euro,” Goltermann wrote, as per Reuters.&nbsp;With the Fed’s September decision now hanging heavily on the next jobs report, the world’s most traded currency faces a decisive few weeks ahead caught between Trump’s protectionist escalation and a cooling American labour market.&nbsp;(With inputs from the agencies)&nbsp;

Trump sacking of the US stats chief and fresh tariffs sparked chaos in currency markets, as investors brace for a Fed pivot amid a weakening labor market.

The US dollar suffered its sharpest intraday fall against major currencies in over a year on Friday, after a surprisingly weak jobs report intensified market speculation that the Federal Reserve may soon pivot towards cutting interest rates, despite earlier hawkish guidance from Chair Jerome Powell. According to Reuters, the US economy added just 73,000 jobs in July, well below economists’ expectations of 110,000, while June’s job gain was revised sharply down, from 147,000 to a mere 14,000. The unemployment rate ticked up to 4.2 per cent, in line with forecasts, but up from 4.1 per cent in June. “It’s worse than anyone expected, and the kicker is that downward revision for the prior month too,” said Helen Given, director of trading at Money USA, as quoted by Reuters. The disappointing labour data triggered a broad-based selloff in the dollar, as traders swiftly re-evaluated the Fed’s rate trajectory. Dollar sees steepest drop since January 2023 The dollar index, which tracks the greenback against a basket of currencies including the euro and yen, plunged 1.23 per cent to 98.80, its lowest since mid-June. The euro surged 1.37 per cent to $1.1571, on track for its biggest one-day gain since April. The Japanese yen rallied sharply, with the dollar dropping 2.23 per cent to 147.37 yen, marking its biggest daily fall against the yen since January 2023. Traders now betting on September Fed cut Despite Powell’s warning earlier in the week that the Fed was in “no rush” to ease rates amid concerns about President Donald Trump’s inflationary tariff policy, Friday’s jobs data triggered a swift shift in market sentiment. As per Reuters, Fed funds futures traders are now pricing in 63 basis points of rate cuts by year-end, up from 34 basis points just a day earlier. The first cut is now widely expected in September, depending on the next employment report. “The labour market is clearly, clearly cooling. That’s going to raise the importance of that September figure as well,” Given told Reuters, noting that Powell had already signalled the Fed would wait for two more jobs reports before making its decision. The August employment data is due on September 5, just days before the Fed’s next policy meeting on September 16–17. Trump sacks statistics chief, imposes more tariffs In a dramatic response to the dismal jobs print, President Donald Trump on Friday ordered the firing of Erika McEntarfer, commissioner of the Bureau of Labor Statistics, as reported by Reuters. Trump also announced new tariffs on dozens of trade partners, contributing to early gains in the dollar before the jobs report reversed the trend. Notably, Switzerland now faces a 39 per cent tariff, with Trump accusing Swiss pharma firms of overcharging American consumers. The Swiss franc, initially weaker on tariff concerns, later recovered as the dollar weakened, with the greenback falling 0.9 per cent to 0.805 francs. Earlier in the session, the dollar had hit 0.8171, its highest since June 23. Currency market turmoil spreads Other major currencies also saw large swings. The Canadian dollar strengthened 0.43 per cent to C$1.38, even after Canada was hit with a 35 per cent tariff, more than the 25 per cent previously threatened. The yen, which had been under pressure for most of the week after the Bank of Japan signalled a dovish stance, rebounded sharply after Finance Minister Katsunobu Kato said officials were “alarmed” by rapid currency movements. In the digital asset market, Bitcoin dropped 2.65 per cent to $113,432, as investors pulled back from riskier assets in response to uncertainty over Fed policy and global trade tensions. All eyes on September Fed rate cut While some economists had projected dollar strength in the second half of 2025, Friday’s data cast fresh doubt on those forecasts. Jonas Goltermann, deputy chief markets economist at Capital Economics, said in a note that a recessionary scenario could flip the outlook entirely. “Plainly, that now looks less probable; in a recession scenario the dollar is likely to weaken against lower-yielding currencies such as the yen and the euro,” Goltermann wrote, as per Reuters. With the Fed’s September decision now hanging heavily on the next jobs report, the world’s most traded currency faces a decisive few weeks ahead caught between Trump’s protectionist escalation and a cooling American labour market. (With inputs from the agencies)

The US dollar plunged after weak jobs data fueled speculation of a September Fed rate cut, despite Trump’s tariff-driven inflation risks.

Dollar plunges as weak US jobs data fuels bets on Fed rate cuts

The United States and China may be inching closer to a comprehensive trade agreement, according to US Treasury Secretary Scott Bessent, who expressed cautious optimism following a fresh round of negotiations in Stockholm this week. In a now-deleted social media post on X, Bessent wrote, “This week’s negotiations in Stockholm have advanced our talks with China, and I believe that we have the makings of a deal that will benefit both of our great nations.” He added, “I am optimistic about the path forward.”&nbsp;The post was later taken down due to a technical error involving image uploads, but a Treasury Department spokesperson confirmed to Reuters that the language reflected Bessent’s consistent public messaging. The post has since been re-uploaded without any changes to the text.<h2>Tariff truce under pressure</h2>As per Reuters, the comments come at a critical moment in US–China trade relations. China is facing an August 12 deadline to reach a durable tariff agreement with the Trump administration. This follows preliminary truces in May and June, aimed at pausing a sharp escalation in tariffs and curbing the looming threat of a full rare earth export cutoff by Beijing.&nbsp;In a televised interview with CNBC on Thursday, Bessent reiterated that “the United States believes it has the makings of a trade deal with China, but it is not 100% done.” He said US negotiators had “pushed back quite a bit” during the two days of intensive discussions in Sweden’s capital.<h2>Trump’s hardline stance adds urgency</h2>The talks in Stockholm marked the first formal high-level dialogue since President Donald Trump warned of “massive retaliatory tariffs” if China failed to secure a long-term agreement by mid-August. The President has already reinstated a series of duties on Chinese goods, ranging from 10 to 41 per cent, affecting sectors such as electronics, automotive parts, and machinery.&nbsp;While no official joint statement was issued after the Stockholm round, Bessent’s remarks suggest measurable progress, even as both sides remain entrenched over key issues such as technology access, state subsidies, and enforcement mechanisms. Despite lingering friction, Bessent’s upbeat tone is being viewed as a potential confidence signal for global markets, which have remained jittery over supply chain disruptions and a potential downturn in US–China trade.&nbsp;As Reuters noted, the Treasury Secretary’s remarks align with broader efforts by Washington to balance assertive trade enforcement with strategic economic diplomacy. Beijing, for its part, has not yet commented officially on the Stockholm talks, but Chinese state media have signalled a preference for a “constructive resolution.” With just ten days left until Trump’s deadline, the world’s two largest economies appear to be navigating a fragile path, one that could either stabilise the global trade architecture or tip it into renewed chaos.&nbsp;(With inputs from the agencies)&nbsp;

As the August 12 tariff deadline nears, Bessent optimism signals progress but Trump hardline stance keeps pressure high on US–China trade talks.

The United States and China may be inching closer to a comprehensive trade agreement, according to US Treasury Secretary Scott Bessent, who expressed cautious optimism following a fresh round of negotiations in Stockholm this week. In a now-deleted social media post on X, Bessent wrote, “This week’s negotiations in Stockholm have advanced our talks with China, and I believe that we have the makings of a deal that will benefit both of our great nations.” He added, “I am optimistic about the path forward.” The post was later taken down due to a technical error involving image uploads, but a Treasury Department spokesperson confirmed to Reuters that the language reflected Bessent’s consistent public messaging. The post has since been re-uploaded without any changes to the text. Tariff truce under pressure As per Reuters, the comments come at a critical moment in US–China trade relations. China is facing an August 12 deadline to reach a durable tariff agreement with the Trump administration. This follows preliminary truces in May and June, aimed at pausing a sharp escalation in tariffs and curbing the looming threat of a full rare earth export cutoff by Beijing. In a televised interview with CNBC on Thursday, Bessent reiterated that “the United States believes it has the makings of a trade deal with China, but it is not 100% done.” He said US negotiators had “pushed back quite a bit” during the two days of intensive discussions in Sweden’s capital. Trump’s hardline stance adds urgency The talks in Stockholm marked the first formal high-level dialogue since President Donald Trump warned of “massive retaliatory tariffs” if China failed to secure a long-term agreement by mid-August. The President has already reinstated a series of duties on Chinese goods, ranging from 10 to 41 per cent, affecting sectors such as electronics, automotive parts, and machinery. While no official joint statement was issued after the Stockholm round, Bessent’s remarks suggest measurable progress, even as both sides remain entrenched over key issues such as technology access, state subsidies, and enforcement mechanisms. Despite lingering friction, Bessent’s upbeat tone is being viewed as a potential confidence signal for global markets, which have remained jittery over supply chain disruptions and a potential downturn in US–China trade. As Reuters noted, the Treasury Secretary’s remarks align with broader efforts by Washington to balance assertive trade enforcement with strategic economic diplomacy. Beijing, for its part, has not yet commented officially on the Stockholm talks, but Chinese state media have signalled a preference for a “constructive resolution.” With just ten days left until Trump’s deadline, the world’s two largest economies appear to be navigating a fragile path, one that could either stabilise the global trade architecture or tip it into renewed chaos. (With inputs from the agencies)

US Treasury Secretary Scott Bessent says talks with China are progressing, raising hopes of a breakthrough ahead of Trump’s looming tariff deadline.

Bessent points to ‘makings of a deal’ between US and China amid tariff tension

OpenAI, in partnership with British cloud infrastructure provider Nscale and Norwegian energy firm Aker ASA, announced plans to build its first AI data centre in Europe. The project, named Stargate Norway, will be located near the town of Narvik in northern Norway and is set to become one of the largest AI data centres on the continent, with an initial investment of $1 billion. Scheduled to begin operations in 2024, Stargate Norway aims to support the growing demand for artificial intelligence (AI) infrastructure. The centre will initially install 100,000 Nvidia processors and offer 230 megawatts (MW) of capacity, with plans to expand to 290 MW by 2026.&nbsp;The facility is expected to be powered entirely by renewable energy sourced from the region’s abundant hydropower resources, aligning with OpenAI’s commitment to sustainable AI development. OpenAI CEO Sam Altman emphasised the strategic importance of the project, stating in a video presentation, “Infrastructure like this unlocks immense potential for developers, researchers, scientists, and startups across Norway and Europe.”<h2>A boost for European AI sovereignty</h2>The launch of Stargate Norway comes as Europe is pushing for “sovereign AI,” ensuring that AI technologies and data processing remain within its borders. This move is seen as a response to growing concerns over data privacy and geopolitical risks, especially with AI systems processing sensitive business and government information. While not directly part of the European Union’s multibillion-dollar AI infrastructure plan, Stargate Norway will contribute to strengthening Europe’s AI ecosystem.&nbsp;The project will be a joint venture, with Nscale and Aker each holding a 50 per cent stake. OpenAI will be a major customer, purchasing capacity from the data centre as it scales. The focus on European sovereignty is also reflected in the facility’s location, chosen for its cool climate, low electricity demand, and limited transmission capacity, key factors for maintaining an energy-efficient AI infrastructure.<h2>Renewable energy and cooling innovations</h2>Stargate Norway will be powered by renewable hydropower, further aligning with OpenAI’s sustainability goals. The centre will incorporate advanced cooling techniques, including closed-loop, direct-to-chip liquid cooling systems, to enhance efficiency and minimise energy consumption. Excess heat generated by the data centre will be used to support local low-carbon enterprises, helping to reduce its overall environmental footprint.The project will also benefit from Nvidia’s cutting-edge GB300 Superchip processors and NVLink network technology, which are essential for handling large AI workloads. As part of its long-term vision, OpenAI plans to expand the facility’s capacity significantly, making it a key player in Europe’s AI infrastructure landscape. The announcement of Stargate Norway follows OpenAI's recent efforts to expand its AI footprint globally, including similar partnerships in the UAE and the United States. With its focus on sustainable energy, advanced technology, and European AI sovereignty, Stargate Norway is set to become a critical component of the continent’s AI future.&nbsp;(With inputs from agencies)

The project, named Stargate Norway, will be located near the town of Narvik in northern Norway and is set to become one of the largest AI data centres on the continent, with an initial investment of $1 billion.

OpenAI, in partnership with British cloud infrastructure provider Nscale and Norwegian energy firm Aker ASA, announced plans to build its first AI data centre in Europe. The project, named Stargate Norway, will be located near the town of Narvik in northern Norway and is set to become one of the largest AI data centres on the continent, with an initial investment of $1 billion. Scheduled to begin operations in 2024, Stargate Norway aims to support the growing demand for artificial intelligence (AI) infrastructure. The centre will initially install 100,000 Nvidia processors and offer 230 megawatts (MW) of capacity, with plans to expand to 290 MW by 2026. The facility is expected to be powered entirely by renewable energy sourced from the region’s abundant hydropower resources, aligning with OpenAI’s commitment to sustainable AI development. OpenAI CEO Sam Altman emphasised the strategic importance of the project, stating in a video presentation, “Infrastructure like this unlocks immense potential for developers, researchers, scientists, and startups across Norway and Europe.” A boost for European AI sovereignty The launch of Stargate Norway comes as Europe is pushing for “sovereign AI,” ensuring that AI technologies and data processing remain within its borders. This move is seen as a response to growing concerns over data privacy and geopolitical risks, especially with AI systems processing sensitive business and government information. While not directly part of the European Union’s multibillion-dollar AI infrastructure plan, Stargate Norway will contribute to strengthening Europe’s AI ecosystem. The project will be a joint venture, with Nscale and Aker each holding a 50 per cent stake. OpenAI will be a major customer, purchasing capacity from the data centre as it scales. The focus on European sovereignty is also reflected in the facility’s location, chosen for its cool climate, low electricity demand, and limited transmission capacity, key factors for maintaining an energy-efficient AI infrastructure. Renewable energy and cooling innovations Stargate Norway will be powered by renewable hydropower, further aligning with OpenAI’s sustainability goals. The centre will incorporate advanced cooling techniques, including closed-loop, direct-to-chip liquid cooling systems, to enhance efficiency and minimise energy consumption. Excess heat generated by the data centre will be used to support local low-carbon enterprises, helping to reduce its overall environmental footprint. The project will also benefit from Nvidia’s cutting-edge GB300 Superchip processors and NVLink network technology, which are essential for handling large AI workloads. As part of its long-term vision, OpenAI plans to expand the facility’s capacity significantly, making it a key player in Europe’s AI infrastructure landscape. The announcement of Stargate Norway follows OpenAI's recent efforts to expand its AI footprint globally, including similar partnerships in the UAE and the United States. With its focus on sustainable energy, advanced technology, and European AI sovereignty, Stargate Norway is set to become a critical component of the continent’s AI future. (With inputs from agencies)

The project, named Stargate Norway, will be located near the town of Narvik in northern Norway and is set to become one of the largest AI data centres on the continent, with an initial investment of $1 billion.

OpenAI to launch first European AI data centre in Norway

US inflation accelerated in June as import tariffs drove up the cost of consumer goods such as furniture, appliances, and recreational products, reinforcing expectations that the Federal Reserve will delay interest rate cuts until at least October. The Commerce Department reported on July 31 that the personal consumption expenditures (PCE) price index, the Fed’s preferred inflation measure, rose 0.3 per cent in June after an upwardly revised 0.2 per cent gain in May. On a year-on-year basis, inflation hit 2.6 per cent, up from 2.4 per cent in May and above the central bank’s 2 per cent target.Core inflation, which excludes volatile food and energy prices, also rose 0.3 per cent on the month and remained at 2.8 per cent annually. Economists noted this sustained upward pressure is being driven by higher goods prices, especially in tariff-sensitive sectors. Furniture prices climbed 1.3 per cent, appliances jumped 1.9 per cent, and computers rose 1.4 per cent, some of the largest monthly increases in years.<h2>Fed holds steady amid persistent inflation</h2>The Federal Reserve kept its benchmark interest rate unchanged this week at 4.25-4.50 per cent, citing ongoing inflation risks. Fed Chair Jerome Powell emphasised the need for more data to determine whether recent inflationary trends are temporary or indicative of sustained pressure due to import duties imposed during President Donald Trump’s administration. While Powell refrained from offering a clear timeline for policy easing, financial markets, which had previously priced in a potential September cut, have now pushed back expectations.Inflation-adjusted wages and incomes have also begun to feel the strain. Real disposable income was flat in June, despite a 0.3 per cent nominal income gain. The saving rate held at 4.5 per cent, indicating growing consumer caution.<h2>Consumer spending holds, but outlook weakens</h2>Despite rising prices, consumer spending edged up 0.3 per cent in June after being flat in May. Adjusted for inflation, spending rose a modest 0.1 per cent. Overall, the economy grew at a 3.0 per cent annual rate in the second quarter, boosted largely by a sharp drop in imports. However, underlying consumer demand remains tepid. Second-quarter spending grew at just a 1.4 per cent annualised pace, up from 0.5 per cent in Q1, suggesting households are becoming more cautious in the face of rising costs and a cooling labour market.Initial jobless claims ticked up slightly last week, and economists expect the July employment report to show a higher unemployment rate of 4.2 per cent, up from 4.1 per cent in June. With core inflation remaining stubbornly above target and price pressures broadening, the Fed appears likely to keep rates higher for longer, weighing on economic momentum into the fall.

Core inflation, which excludes volatile food and energy prices, also rose 0.3 per cent on the month and remained at 2.8 per cent annually. Economists noted this sustained upward pressure is being driven by higher goods prices, especially in tariff-sensitive sectors.

US inflation accelerated in June as import tariffs drove up the cost of consumer goods such as furniture, appliances, and recreational products, reinforcing expectations that the Federal Reserve will delay interest rate cuts until at least October. The Commerce Department reported on July 31 that the personal consumption expenditures (PCE) price index, the Fed’s preferred inflation measure, rose 0.3 per cent in June after an upwardly revised 0.2 per cent gain in May. On a year-on-year basis, inflation hit 2.6 per cent, up from 2.4 per cent in May and above the central bank’s 2 per cent target. Core inflation, which excludes volatile food and energy prices, also rose 0.3 per cent on the month and remained at 2.8 per cent annually. Economists noted this sustained upward pressure is being driven by higher goods prices, especially in tariff-sensitive sectors. Furniture prices climbed 1.3 per cent, appliances jumped 1.9 per cent, and computers rose 1.4 per cent, some of the largest monthly increases in years. Fed holds steady amid persistent inflation The Federal Reserve kept its benchmark interest rate unchanged this week at 4.25-4.50 per cent, citing ongoing inflation risks. Fed Chair Jerome Powell emphasised the need for more data to determine whether recent inflationary trends are temporary or indicative of sustained pressure due to import duties imposed during President Donald Trump’s administration. While Powell refrained from offering a clear timeline for policy easing, financial markets, which had previously priced in a potential September cut, have now pushed back expectations. Inflation-adjusted wages and incomes have also begun to feel the strain. Real disposable income was flat in June, despite a 0.3 per cent nominal income gain. The saving rate held at 4.5 per cent, indicating growing consumer caution. Consumer spending holds, but outlook weakens Despite rising prices, consumer spending edged up 0.3 per cent in June after being flat in May. Adjusted for inflation, spending rose a modest 0.1 per cent. Overall, the economy grew at a 3.0 per cent annual rate in the second quarter, boosted largely by a sharp drop in imports. However, underlying consumer demand remains tepid. Second-quarter spending grew at just a 1.4 per cent annualised pace, up from 0.5 per cent in Q1, suggesting households are becoming more cautious in the face of rising costs and a cooling labour market. Initial jobless claims ticked up slightly last week, and economists expect the July employment report to show a higher unemployment rate of 4.2 per cent, up from 4.1 per cent in June. With core inflation remaining stubbornly above target and price pressures broadening, the Fed appears likely to keep rates higher for longer, weighing on economic momentum into the fall.

Core inflation, which excludes volatile food and energy prices, also rose 0.3 per cent on the month and remained at 2.8 per cent annually. Economists noted this sustained upward pressure is being driven by higher goods prices, especially in tariff-sensitive sectors.

US inflation rises in June as tariffs fuel price increases

Donald Trump’s sweeping tariff policy is reportedly now under judicial scrutiny. A federal appeals court case could redefine the limits of presidential power over trade, just as Trump doubles down on fresh import duties. According to a CNN Business report, a group of five small business owners and 12 Democratic-led states are challenging Trump’s use of the International Emergency Economic Powers Act (IEEPA) to justify wide-ranging tariffs. They argue that the 1977 law, designed for genuine national emergencies, doesn’t legally permit the imposition of customs duties.&nbsp;This case could have a significant impact on the legal framework supporting Trump’s recent tariff blitz, including the 10 per cent universal import duties introduced in April, and the steep 50 per cent tariffs now targeting exports from countries like Brazil.<h2>The courtroom clash</h2>Oral arguments began Thursday at the US Court of Appeals for the Federal Circuit. The legal challenge follows a prior ruling from the US Court of International Trade that sided with the plaintiffs but allowed the contested tariffs to remain in place pending appeal. Assistant Attorney General Brett Shumate defended the Trump administration’s position, but as per CNN Business, at least 10 of the 11 judges expressed scepticism over the legality of using IEEPA to justify tariff actions.&nbsp;Judge Jimmie Reyna pointedly asked, “But IEEPA has been rarely used, hasn’t it? It’s been over 50 years since it’s been used?” He further noted, “IEEPA doesn’t even say tariffs, doesn’t even mention them.” Another judge, Raymond Chen, challenged the claim that the US trade deficit constitutes an “extraordinary and unusual threat” that would justify emergency powers, asking: “Can the trade deficit be an extraordinary and unusual threat when we have had trade deficits for decades?”<h2>Why it matters?</h2>Trump has been relying on IEEPA to push a new wave of tariffs targeting China, Mexico, Canada, and most recently Brazil. On Wednesday, the former president used the law to hike tariffs on Brazilian exports by 40 percentage points — from 10 per cent to 50 per cent — citing an economic emergency. Even allies like Japan and the European Union, who signed fresh trade deals with Trump earlier this year are now facing higher tariffs under IEEPA provisions. If the court rules against Trump, the legal foundation of these deals could crumble.&nbsp;JPMorgan analysts warned in a note, “If the IEEPA is deemed inadmissible, the legal status of the trade deals themselves could come into question.," as quoted by CNN Business.&nbsp;<h2>What’s not at stake?</h2>Even if Trump loses this legal battle, it doesn’t mean his tariff machine will grind to a halt.&nbsp;In fact, the former president has also been using other legislative tools, including Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974, to impose targeted duties. For example, Trump used Section 232 to justify a 50 per cent copper tariff this year on national security grounds, which requires a government probe before implementation.&nbsp;Section 301, meanwhile, was the basis for many of Trump’s original tariffs against China and Europe during his first term. Unlike IEEPA-based tariffs, these mechanisms are not being challenged in court.<h2>What comes next?</h2>The appeals court could take weeks, even months to reach a decision. The case may eventually land in the US Supreme Court, introducing more uncertainty into Trump’s trade strategy, even as he continues to threaten new levies unless global partners agree to renegotiated deals.&nbsp;Whether this legal challenge stops him or not, one thing is clear: Trump’s reliance on economic emergencies to justify tariffs is under more scrutiny than ever before.&nbsp;(With inputs from the agencies)

A group of five small business owners and 12 Democratic-led states challenges his use of the International Emergency Economic Powers Act (IEEPA) for implementing tariffs, arguing it does not legally permit customs duties. 

Donald Trump’s sweeping tariff policy is reportedly now under judicial scrutiny. A federal appeals court case could redefine the limits of presidential power over trade, just as Trump doubles down on fresh import duties. According to a CNN Business report, a group of five small business owners and 12 Democratic-led states are challenging Trump’s use of the International Emergency Economic Powers Act (IEEPA) to justify wide-ranging tariffs. They argue that the 1977 law, designed for genuine national emergencies, doesn’t legally permit the imposition of customs duties. This case could have a significant impact on the legal framework supporting Trump’s recent tariff blitz, including the 10 per cent universal import duties introduced in April, and the steep 50 per cent tariffs now targeting exports from countries like Brazil. The courtroom clash Oral arguments began Thursday at the US Court of Appeals for the Federal Circuit. The legal challenge follows a prior ruling from the US Court of International Trade that sided with the plaintiffs but allowed the contested tariffs to remain in place pending appeal. Assistant Attorney General Brett Shumate defended the Trump administration’s position, but as per CNN Business, at least 10 of the 11 judges expressed scepticism over the legality of using IEEPA to justify tariff actions. Judge Jimmie Reyna pointedly asked, “But IEEPA has been rarely used, hasn’t it? It’s been over 50 years since it’s been used?” He further noted, “IEEPA doesn’t even say tariffs, doesn’t even mention them.” Another judge, Raymond Chen, challenged the claim that the US trade deficit constitutes an “extraordinary and unusual threat” that would justify emergency powers, asking: “Can the trade deficit be an extraordinary and unusual threat when we have had trade deficits for decades?” Why it matters? Trump has been relying on IEEPA to push a new wave of tariffs targeting China, Mexico, Canada, and most recently Brazil. On Wednesday, the former president used the law to hike tariffs on Brazilian exports by 40 percentage points — from 10 per cent to 50 per cent — citing an economic emergency. Even allies like Japan and the European Union, who signed fresh trade deals with Trump earlier this year are now facing higher tariffs under IEEPA provisions. If the court rules against Trump, the legal foundation of these deals could crumble. JPMorgan analysts warned in a note, “If the IEEPA is deemed inadmissible, the legal status of the trade deals themselves could come into question.," as quoted by CNN Business. What’s not at stake? Even if Trump loses this legal battle, it doesn’t mean his tariff machine will grind to a halt. In fact, the former president has also been using other legislative tools, including Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974, to impose targeted duties. For example, Trump used Section 232 to justify a 50 per cent copper tariff this year on national security grounds, which requires a government probe before implementation. Section 301, meanwhile, was the basis for many of Trump’s original tariffs against China and Europe during his first term. Unlike IEEPA-based tariffs, these mechanisms are not being challenged in court. What comes next? The appeals court could take weeks, even months to reach a decision. The case may eventually land in the US Supreme Court, introducing more uncertainty into Trump’s trade strategy, even as he continues to threaten new levies unless global partners agree to renegotiated deals. Whether this legal challenge stops him or not, one thing is clear: Trump’s reliance on economic emergencies to justify tariffs is under more scrutiny than ever before. (With inputs from the agencies)

Donald Trump’s tariff policy reportedly faces judicial scrutiny with a federal appeals court case that could redefine presidential trade powers.

Trump’s trade tariffs face key legal test in US court

US President Donald Trump’s latest tariff move has landed like a thunderclap across Asia. From long-standing allies like Japan and South Korea to smaller ASEAN economies, much of the continent is scrambling to recalibrate trade ties with Washington as the August 1 deadline for new duties kicks in. These tariffs, announced on “Liberation Day” in April, are the most sweeping since the first US-China trade war in 2018. And while some nations have managed to soften the blow through backdoor diplomacy, others are facing brutal levies of up to 40 per cent.&nbsp;So, who got what and why?<h2>US allies found a diplomatic lifeline</h2>For Japan and South Korea, key US military allies, the stakes were high. Both initially faced a steep 25 per cent tariff on cars and semiconductors, a sector vital to both economies and critical to US supply chains. But trade delegations from both countries rushed to Washington in June and July. It paid off. As per BBC and Bloomberg reports, they successfully brought the tariffs down to 15 per cent by late July. President Trump even called the Japan deal the “largest trade deal in history” on July 22.&nbsp;Taiwan which is home to chip giant TSMC, was also in the line of fire, facing 32 per cent tariffs back in April. But Taipei managed to negotiate a cut to 20 per cent, though the semiconductor sector may face additional “sectoral duties,” pending further talks. Australia, which faced a 10 per cent rate, appears to have dodged an increase. But New Zealand wasn’t as lucky , its rate jumped to 15 per cent. Its trade minister called the hike “unfair” and requested emergency talks with Washington, according to BBC.<h2>What about China &amp; India?&nbsp;</h2>China was conspicuously absent from Trump’s July 30 announcement. But that doesn’t mean the heat is off. Diplomatic negotiations are intensifying, with meetings in Geneva, London, and most recently Stockholm, &nbsp;as Beijing tries to secure a 90-day extension to the current trade truce expiring August 12, reported Reuters. China is pushing for a suspension of US export controls on semiconductors. In return, Washington wants Beijing to increase US goods purchases, curb fentanyl exports, and open its market wider to American firms.&nbsp;India, meanwhile, wasn’t spared. Despite being described by Trump as a “good friend,” New Delhi saw a 25 per cent tariff slapped on its exports, along with what BBC termed an “unspecified penalty” over its continued purchases of Russian arms and oil. That’s a slight improvement from the earlier proposed 27 per cent in April, but still a blow. “Delhi’s ties with Moscow remain a point of irritation,” said US Secretary of State Marco Rubio, quoted by BBC.<h2>ASEAN: Fragmented outcomes for Southeast Asia</h2>Perhaps the hardest hit region was Southeast Asia, where tariff rates originally ranged from 10 to 49 per cent. The region’s growth engine exports, now faces major headwinds. Vietnam was the first ASEAN country to act, sealing a deal to reduce its rate from 46 per cent to 20 per cent. That quickly became the benchmark. Now, most ASEAN nations face rates between 19 to 20 per cent, according to updated BBC and Bloomberg data.&nbsp;Brunei is slightly worse off at 25 per cent. Laos and Myanmar have been hit with the harshest levy, 40 per cent, despite unclear justification. Trade expert Dr Deborah Elms told the BBC this could be linked to their low purchasing power and strategic ties with China. Singapore, interestingly, retains its 10 per cent rate. Since it imports more from the US than it exports, Washington sees it less as a trade threat.<h2>Pakistan rewarded for warming ties</h2>Pakistan has emerged as a quiet beneficiary. While its neighbours, India, Bangladesh, and Vietnam, all face higher duties, Islamabad has received a relatively lenient 19 per cent tariff. According to Bloomberg, that’s due in part to improving US–Pakistan ties in Trump’s second term. Pakistan even nominated Trump for the Nobel Peace Prize in June, a gesture that likely didn’t go unnoticed.&nbsp;The lower rate could boost Pakistan’s textile exports, which make up nearly 60 per cent of its total exports, most of which head to the US.

Asia’s tariff scoreboard (2025 US Tariffs)<figure class="table"><table><tbody><tr><td>Country</td><td>April Tariff (%)</td><td>Final Tariff (%)</td></tr><tr><td>Japan</td><td>25</td><td>15</td></tr><tr><td>South Korea</td><td>25</td><td>15</td></tr><tr><td>Taiwan</td><td>32</td><td>20</td></tr><tr><td>Australia</td><td>10</td><td>10</td></tr><tr><td>New Zealand</td><td>10</td><td>15</td></tr><tr><td>India</td><td>26</td><td>25</td></tr><tr><td>Vietnam</td><td>46</td><td>20</td></tr><tr><td>Thailand, Indonesia, Malaysia, Cambodia, Philippines, Sri Lanka, Bangladesh</td><td>30–49</td><td>19–20</td></tr><tr><td>Brunei</td><td>25</td><td>25</td></tr><tr><td>Laos, Myanmar</td><td>40</td><td>40</td></tr><tr><td>Singapore</td><td>10</td><td>10</td></tr><tr><td>Pakistan</td><td>19</td><td>19</td></tr><tr><td>Afghanistan, Fiji, PNG, Nauru</td><td>15</td><td>15</td></tr><tr><td>Kazakhstan</td><td>25</td><td>25</td></tr></tbody></table></figure>

<h2>What happens next?</h2>The White House insists these rates are not final. As trade expert Dr Elms told the BBC, “The president reserves the right to change them based on ongoing negotiations or new developments.&nbsp;It’s a fluid situation and with Asia’s export-reliant economies on edge, the next 90 days could be crucial in shaping the future of US-Asia trade. &nbsp;(With inputs from agencies) &nbsp;

These tariffs, the most extensive since the 2018 US-China trade war, have seen Japan and South Korea negotiate reductions from 25% to 15% on key sectors, while Taiwan’s tariffs were lowered from 32% to 20%. 

US President Donald Trump’s latest tariff move has landed like a thunderclap across Asia. From long-standing allies like Japan and South Korea to smaller ASEAN economies, much of the continent is scrambling to recalibrate trade ties with Washington as the August 1 deadline for new duties kicks in. These tariffs, announced on “Liberation Day” in April, are the most sweeping since the first US-China trade war in 2018. And while some nations have managed to soften the blow through backdoor diplomacy, others are facing brutal levies of up to 40 per cent. So, who got what and why? US allies found a diplomatic lifeline For Japan and South Korea, key US military allies, the stakes were high. Both initially faced a steep 25 per cent tariff on cars and semiconductors, a sector vital to both economies and critical to US supply chains. But trade delegations from both countries rushed to Washington in June and July. It paid off. As per BBC and Bloomberg reports, they successfully brought the tariffs down to 15 per cent by late July. President Trump even called the Japan deal the “largest trade deal in history” on July 22. Taiwan which is home to chip giant TSMC, was also in the line of fire, facing 32 per cent tariffs back in April. But Taipei managed to negotiate a cut to 20 per cent, though the semiconductor sector may face additional “sectoral duties,” pending further talks. Australia, which faced a 10 per cent rate, appears to have dodged an increase. But New Zealand wasn’t as lucky , its rate jumped to 15 per cent. Its trade minister called the hike “unfair” and requested emergency talks with Washington, according to BBC. What about China & India? China was conspicuously absent from Trump’s July 30 announcement. But that doesn’t mean the heat is off. Diplomatic negotiations are intensifying, with meetings in Geneva, London, and most recently Stockholm, as Beijing tries to secure a 90-day extension to the current trade truce expiring August 12, reported Reuters. China is pushing for a suspension of US export controls on semiconductors. In return, Washington wants Beijing to increase US goods purchases, curb fentanyl exports, and open its market wider to American firms. India, meanwhile, wasn’t spared. Despite being described by Trump as a “good friend,” New Delhi saw a 25 per cent tariff slapped on its exports, along with what BBC termed an “unspecified penalty” over its continued purchases of Russian arms and oil. That’s a slight improvement from the earlier proposed 27 per cent in April, but still a blow. “Delhi’s ties with Moscow remain a point of irritation,” said US Secretary of State Marco Rubio, quoted by BBC. ASEAN: Fragmented outcomes for Southeast Asia Perhaps the hardest hit region was Southeast Asia, where tariff rates originally ranged from 10 to 49 per cent. The region’s growth engine exports, now faces major headwinds. Vietnam was the first ASEAN country to act, sealing a deal to reduce its rate from 46 per cent to 20 per cent. That quickly became the benchmark. Now, most ASEAN nations face rates between 19 to 20 per cent, according to updated BBC and Bloomberg data. Brunei is slightly worse off at 25 per cent. Laos and Myanmar have been hit with the harshest levy, 40 per cent, despite unclear justification. Trade expert Dr Deborah Elms told the BBC this could be linked to their low purchasing power and strategic ties with China. Singapore, interestingly, retains its 10 per cent rate. Since it imports more from the US than it exports, Washington sees it less as a trade threat. Pakistan rewarded for warming ties Pakistan has emerged as a quiet beneficiary. While its neighbours, India, Bangladesh, and Vietnam, all face higher duties, Islamabad has received a relatively lenient 19 per cent tariff. According to Bloomberg, that’s due in part to improving US–Pakistan ties in Trump’s second term. Pakistan even nominated Trump for the Nobel Peace Prize in June, a gesture that likely didn’t go unnoticed. The lower rate could boost Pakistan’s textile exports, which make up nearly 60 per cent of its total exports, most of which head to the US.

US President Trump's recent tariffs have sent shockwaves across Asia as countries prepare for new duties by August 1.

Trump’s tariff blitz hits Asia: Who got hurt, who escaped, and how it impacted their economies?

US President Donald Trump’s sweeping new tariffs, designed to boost American manufacturing and generate billions in revenue, are already hitting consumer wallets. While allies like the European Union and Japan have struck deals to dodge the worst tariffs, others like Canada and Vietnam are facing steep hikes from August 1. And for ordinary Americans, the price pain is just getting started. are now as high as 50 per cent on some imports, including Canadian crude oil and Brazilian coffee. The Budget Lab at Yale warns that clothing prices alone may surge up to 37 per cent in the near term.&nbsp;So,&nbsp; what exactly will Americans be paying more for?

Products that will cost Americans more under Trump’s tariffs<figure class="table"><table><tbody><tr><td>Product Category</td><td>Countries Targeted</td><td>Tariff Range</td><td>Key Impact</td></tr><tr><td>Clothing &amp; Footwear</td><td>China, Vietnam, Bangladesh</td><td>19–30%</td><td>Budget apparel to see price spikes at Target &amp; Walmart</td></tr><tr><td>Coffee</td><td>Brazil, Vietnam</td><td>20–50%</td><td>Morning brew to get more expensive</td></tr><tr><td>Olive Oil &amp; Produce</td><td>EU, Mexico</td><td>15–25%</td><td>Pasta nights and avocado toast take a hit</td></tr><tr><td>Alcohol</td><td>EU, Mexico</td><td>Varies</td><td>Champagne, whiskey &amp; canned beers costlier</td></tr><tr><td>Cars &amp; Auto Parts</td><td>Global (excl. EU, Japan)</td><td>Up to 25%</td><td>Higher cost of imported and even US-assembled cars</td></tr><tr><td>Construction Goods</td><td>Canada, global</td><td>Up to 50%</td><td>Steel, copper &amp; lumber prices raise home costs</td></tr><tr><td>Energy &amp; Fuel</td><td>Canada</td><td>10%</td><td>Heavier crude tariffs may push up gas prices</td></tr></tbody></table></figure>

<h2>Clothes no longer cheap as chips</h2>Whether it’s Levi’s jeans or Nike trainers, most US clothing comes from overseas. Countries like Vietnam, China, and Bangladesh dominate supply chains. According to the BBC, tariffs on Chinese apparel are now 30 per cent, with Vietnam and Bangladesh next in line at 19–20 per cent from August. That’s already nudging up retail prices. After months of decline, US apparel prices jumped 0.4 per cent from May to June, per the Bureau of Labor Statistics. Analysts at Yale’s Budget Lab predict that the average consumer could soon pay over a third more for everyday clothing. Big retailers like Walmart and Target are under pressure. Bloomberg reports many brands are passing on at least part of the cost to consumers, and the back-to-school season may be the first casualty.<h2>Coffee&nbsp;</h2>America imports nearly all its coffee. That’s bad news when Brazilian beans that will face a 50 per cent import tariff, and Vietnamese coffee 20 per cent, according to Reuters.&nbsp;Even Starbucks may struggle to hold prices steady. As per Bloomberg, global coffee futures are rising due to trade tensions and adverse weather. Combined with tariffs, the daily caffeine fix could soon strain wallets, especially for low-income households.<h2>Olive oil, avocados &amp; tomatoes take a hit</h2>Olive oil from Italy or Spain, tomatoes from Mexico, these food staples are caught in the tariff crossfire.&nbsp;The 15 per cent tariff on EU goods, and separate duties on Mexican produce, are already showing up in shelf prices. Yale’s Budget Lab forecasts a 3.4 per cent jump in food prices, with fresh items like avocados and tomatoes seeing sharper spikes.&nbsp;While some exemptions were granted, the coverage remains patchy. “The food aisle will feel the pain well before the factory floor sees any gain,” one food importer told Reuters anonymously.<h2>What about alcohol?</h2>Europe sends nearly €9 billion ($9.8 billion) of alcohol to the US each year, including champagne and Irish whiskey, as per Bloomberg.&nbsp;While the recent EU-US deal removed some food tariffs, it’s unclear if alcohol was included. If not, drinkers may pay more for their favourite imports. Meanwhile, Mexican beers like Corona face higher prices due to aluminium tariffs, which raise canning costs. Given that over 64 per cent of beer in the US is canned, the impact could be wide.<h2>Car buyers beware: Tariffs hit global supply chains</h2>Trump’s 25 per cent tariff on imported vehicles and parts, softened to 15 per cent for EU and Japanese imports, still leaves others exposed. Although car prices haven’t soared yet, analysts warn this may change. “Manufacturers are currently absorbing the shock,” Erin Keating from Cox Automotive told BBC. “But it’s not sustainable.”Ironically, some American-brand cars built in Mexico or Canada also face levies, meaning US companies may lose ground to foreign automakers with local plants.<h2>Building homes? It’s going to cost more</h2>Trump’s earlier tariffs on steel and aluminium have already nudged up home construction costs. A new 50 per cent levy on copper and looming tariffs on Canadian lumber could make things worse.&nbsp;The National Association of Home Builders says the average home price could rise significantly if lumber tariffs go through. As per the Canadian Chamber of Commerce, Canada supplies 69 per cent of US lumber, 25 per cent of imported iron and steel, and 18 per cent of copper.&nbsp;“Consumers end up paying for the tariffs in the form of higher home prices,” NAHB warned.<h2>Canadian crude tariffs may fuel price hikes</h2>Trump’s 10 per cent tariff on Canadian energy exports is a wildcard. While oil and gas imports were mostly exempt, the move may upset the balance.According to official US data, 61 per cent of US crude oil imports (Jan–Nov 2024) came from Canada. American refineries depend heavily on “heavy crude” from Canada for diesel and jet fuel.&nbsp;If Canada retaliates, Bloomberg warns fuel prices in the US could rise, even though the country is a net oil exporter.<h2>Tariffs or tax? Americans will feel the cost</h2>Trump insists the tariffs will bring jobs home and bolster the US economy. But as Yale’s economists, Bloomberg analysts and Reuters surveys suggest that the upfront cost may be borne by households.&nbsp;Whether it’s denim, drip coffee, or diesel, for millions of Americans, the next shopping bill might come with a tariff-shaped surprise. &nbsp;(With inputs from the agencies)

Tariffs range from 19% to 50% on items from countries including China, Brazil, Canada, and Mexico. Key price hikes are anticipated in clothing (up to 37%), coffee (20-50%), and food staples like olive oil and fresh produce (15-25%). 

US President Donald Trump’s sweeping new tariffs, designed to boost American manufacturing and generate billions in revenue, are already hitting consumer wallets. While allies like the European Union and Japan have struck deals to dodge the worst tariffs, others like Canada and Vietnam are facing steep hikes from August 1. And for ordinary Americans, the price pain is just getting started. are now as high as 50 per cent on some imports, including Canadian crude oil and Brazilian coffee. The Budget Lab at Yale warns that clothing prices alone may surge up to 37 per cent in the near term. So, what exactly will Americans be paying more for?

Post-Trump's new tariffs, Americans will face increased costs across multiple product categories.

Here are things that will cost Americans more post-Trump's new tariff

South Korea’s exports rose for the second consecutive month in July, boosted by a surge in semiconductor demand and front-loading of shipments ahead of higher US tariffs. According to government data released on August 1, outbound shipments climbed 5.9 per cent year-on-year to $60.82 billion, the highest July figure on record and the strongest monthly performance since December 2024. The figure exceeded a Reuters poll forecast of 4.6 per cent growth and outpaced June’s 4.3 per cent gain.This jump was largely driven by exporters hurrying to meet the August 1 deadline for increased US tariffs. US President Donald Trump signed an executive order last week implementing reciprocal tariffs ranging from 10 per cent to 41 per cent, including a 15 per cent levy on South Korean goods, lower than the threatened 25 per cent but still higher than the previous 10 per cent. In response, South Korean manufacturers advanced shipment schedules to avoid the harsher rates. While this supported July’s numbers, economists warned that the impact could be short-lived.&nbsp;<h2>Chips and ships lead the charge</h2>Semiconductors were the standout performer, jumping 39.3 per cent year-on-year to $14.71 billion, marking the biggest annual increase since October 2024. High global demand for memory products, including high-bandwidth memory (HBM) and DDR5 chips, contributed to the surge. A government official noted the chip sector’s resilience, saying US tariffs may have limited impact since “Korean companies manufacture high-value semiconductors that US firms cannot make.”Exports of automobiles rose 8.8 per cent, particularly in non-US markets such as the EU, Latin America, and CIS countries, despite a steep 97.7 per cent drop in electric vehicle (EV) exports to the US caused by the 25 per cent tariff on imported cars. A new trade deal cut that to 15 per cent, aligning Korean auto tariffs with those for Japan and Europe. Ship exports soared 107.6 per cent to $2.24 billion, driven by demand for LNG tankers and other high-value vessels. Cosmetics (up 18.1 per cent) and agro-fisheries products (up 3.8 per cent) also hit record July highs, as global interest in Korean culture and consumer goods continued to grow.<h2>Mixed outlook amid global uncertainty</h2>Despite the positive headline numbers, South Korea’s factory activity contracted for the sixth consecutive month, and the central bank maintains a conservative 0.8 per cent GDP growth forecast for 2025. Trade by destination revealed a 1.4 per cent rise in exports to the US, thanks to robust demand for chips and electronics, though the US fell to third place among Korea’s trading partners for the first time in over a year. Exports to China dipped 3 per cent amid weak demand for petrochemicals and communications gear, while shipments to the EU and ASEAN rose 8.7 per cent and 10.1 per cent, respectively. With a trade surplus of $6.61 billion, down from June’s $9.08 billion, policymakers remain cautiously optimistic.&nbsp;(With inputs from agencies)

South Korea’s outbound shipments climbed 5.9 per cent year-on-year to $60.82 billion, the highest July figure on record and the strongest monthly performance since December 2024. The figure exceeded a Reuters poll forecast of 4.6 per cent growth and outpaced June’s 4.3 per cent gain.

South Korea’s exports rose for the second consecutive month in July, boosted by a surge in semiconductor demand and front-loading of shipments ahead of higher US tariffs. According to government data released on August 1, outbound shipments climbed 5.9 per cent year-on-year to $60.82 billion, the highest July figure on record and the strongest monthly performance since December 2024. The figure exceeded a Reuters poll forecast of 4.6 per cent growth and outpaced June’s 4.3 per cent gain. This jump was largely driven by exporters hurrying to meet the August 1 deadline for increased US tariffs. US President Donald Trump signed an executive order last week implementing reciprocal tariffs ranging from 10 per cent to 41 per cent, including a 15 per cent levy on South Korean goods, lower than the threatened 25 per cent but still higher than the previous 10 per cent. In response, South Korean manufacturers advanced shipment schedules to avoid the harsher rates. While this supported July’s numbers, economists warned that the impact could be short-lived. Chips and ships lead the charge Semiconductors were the standout performer, jumping 39.3 per cent year-on-year to $14.71 billion, marking the biggest annual increase since October 2024. High global demand for memory products, including high-bandwidth memory (HBM) and DDR5 chips, contributed to the surge. A government official noted the chip sector’s resilience, saying US tariffs may have limited impact since “Korean companies manufacture high-value semiconductors that US firms cannot make.” Exports of automobiles rose 8.8 per cent, particularly in non-US markets such as the EU, Latin America, and CIS countries, despite a steep 97.7 per cent drop in electric vehicle (EV) exports to the US caused by the 25 per cent tariff on imported cars. A new trade deal cut that to 15 per cent, aligning Korean auto tariffs with those for Japan and Europe. Ship exports soared 107.6 per cent to $2.24 billion, driven by demand for LNG tankers and other high-value vessels. Cosmetics (up 18.1 per cent) and agro-fisheries products (up 3.8 per cent) also hit record July highs, as global interest in Korean culture and consumer goods continued to grow. Mixed outlook amid global uncertainty Despite the positive headline numbers, South Korea’s factory activity contracted for the sixth consecutive month, and the central bank maintains a conservative 0.8 per cent GDP growth forecast for 2025. Trade by destination revealed a 1.4 per cent rise in exports to the US, thanks to robust demand for chips and electronics, though the US fell to third place among Korea’s trading partners for the first time in over a year. Exports to China dipped 3 per cent amid weak demand for petrochemicals and communications gear, while shipments to the EU and ASEAN rose 8.7 per cent and 10.1 per cent, respectively. With a trade surplus of $6.61 billion, down from June’s $9.08 billion, policymakers remain cautiously optimistic. (With inputs from agencies)

South Korea’s outbound shipments climbed 5.9 per cent year-on-year to $60.82 billion, the highest July figure on record and the strongest monthly performance since December 2024. The figure exceeded a Reuters poll forecast of 4.6 per cent growth and outpaced June’s 4.3 per cent gain.

South Korea’s exports surge in July amid tariff rush and chip demand

In June, Japan’s unemployment rate held steady at 2.5 per cent, unchanged from the previous month, according to official data released on Friday. While the headline figure met economists’ expectations, there are early signs that the country’s once-tight labour market may be starting to ease. As per government figures cited by Reuters, the jobs-to-applicants ratio, a key measure of labour demand, slipped to 1.22 in June, down from 1.24 in May. This means that there were 122 job openings for every 100 job seekers, a modest decline that suggests companies may be turning more cautious about hiring. Economists surveyed by Reuters had expected a slightly stronger reading of 1.25, indicating that the dip came in weaker than forecast.<h2>Labour market holding, but momentum slowing</h2>While Japan’s unemployment rate remains one of the lowest among major economies. This drop in job openings could also reportedly be a subtle warning sign of broader economic softening. “Labour conditions remain stable, but the fall in the job openings ratio hints at a gradual cooling in hiring appetite,” economists told Reuters, noting that corporate sentiment may be affected by sluggish global demand and uncertainty around US tariffs.&nbsp;Japan’s export-reliant economy has been reportedly navigating external headwinds, from softer Chinese demand to trade frictions sparked by US tariff policies under President Donald Trump.<h2>What’s next?</h2>The Bank of Japan and policymakers in Tokyo will be closely watching job market trends as they weigh future economic stimulus or rate decisions. A weakening labour market could reportedly pressure the central bank to slow its bond tapering or even pause rate hikes if broader growth risks emerge.&nbsp;For now, the jobless rate is holding firm. But with job offers slipping, economists warn that Japan’s post-pandemic labour resilience may be peaking.&nbsp;(With inputs from the agencies)&nbsp;

This drop signals potential cautiousness in hiring, prompting economists to caution about economic softening amid external pressures. The Bank of Japan is monitoring these trends closely.

In June, Japan’s unemployment rate held steady at 2.5 per cent, unchanged from the previous month, according to official data released on Friday. While the headline figure met economists’ expectations, there are early signs that the country’s once-tight labour market may be starting to ease. As per government figures cited by Reuters, the jobs-to-applicants ratio, a key measure of labour demand, slipped to 1.22 in June, down from 1.24 in May. This means that there were 122 job openings for every 100 job seekers, a modest decline that suggests companies may be turning more cautious about hiring. Economists surveyed by Reuters had expected a slightly stronger reading of 1.25, indicating that the dip came in weaker than forecast. Labour market holding, but momentum slowing While Japan’s unemployment rate remains one of the lowest among major economies. This drop in job openings could also reportedly be a subtle warning sign of broader economic softening. “Labour conditions remain stable, but the fall in the job openings ratio hints at a gradual cooling in hiring appetite,” economists told Reuters, noting that corporate sentiment may be affected by sluggish global demand and uncertainty around US tariffs. Japan’s export-reliant economy has been reportedly navigating external headwinds, from softer Chinese demand to trade frictions sparked by US tariff policies under President Donald Trump. What’s next? The Bank of Japan and policymakers in Tokyo will be closely watching job market trends as they weigh future economic stimulus or rate decisions. A weakening labour market could reportedly pressure the central bank to slow its bond tapering or even pause rate hikes if broader growth risks emerge. For now, the jobless rate is holding firm. But with job offers slipping, economists warn that Japan’s post-pandemic labour resilience may be peaking. (With inputs from the agencies)

Japan's unemployment rate remained steady at 2.5% in June, with a slight decline in the jobs-to-applicants ratio to 1.22.

Japan unemployment holds at 2.5% in June as job offers decline

Donald Trump called India a ‘dead economy’ while announcing 25 per cent tariffs and penalties. The Indian opposition leader Rahul Gandhi agreed that India is a dead economy. But is it even a financial term, and is India indeed a dead economy? Here is what you should know:<h2>Is ‘dead economy’ a formal financial term?</h2>No, "dead economy" is not a term used in economics or finance. GDP growth, unemployment, inflation, or industrial output are the general criteria for checking the health of an economy, not vague, rhetorical terms like ‘dead economy.’&nbsp;<h2>Is India a ‘dead economy’? Reasons why it is not</h2>For argument's sake, let us take the dead economy jibe of Trump seriously and analyse India, one of the world’s fastest-growing major economies. Below is an exploration of India's economic activity and global positioning, to debunk Trump's claims supported by a section of Indian politicians.<h2>India GDP growth at a steady pace despite global uncertainties</h2>India is projected to grow at 6.4 per cent in 2025 and 2026 as per recent IMF estimates. This growth rate is better than major economies like the US (1.9 pc) and Japan (0.7 pc). In the fiscal year 2023–2024, India’s real GDP growth reached 9.2 per cent, the highest in more than a decade. For the third quarter of 2024–2025, growth was at 6.2 pc, year on year. India is the fourth-largest economy by nominal GDP, valued at $4.187 trillion in 2025, slightly ahead of Japan, and the third-largest by purchasing power parity or PPP. India is set to become the third-largest by nominal GDP by 2027.<h2>Domestic demand remains strong in India</h2>Private consumption in India grew by 7.4 per cent in the first quarter of financial year 2025, at a healthy 56 per cent of GDP. Interestingly, rural consumption, supported by better harvests and lower inflation, accounts for around 40 per cent of consumer goods sales. Private sector investment grew by 7.5 per cent in the first quarter of &nbsp;2025 financial year, a sign of confidence in the Indian economy.<h2>India is blessed with a young and skilled workforce, unlike countries like US</h2>For decades now, India has enjoyed a relatively young population, with the median age at 28.8, compared to 38.5 in the US and 42.8 in Europe. This ‘demographic dividend’ &nbsp;is reflected in its tech-skilled workforce in fields like Artificial Intelligence, Information Technologies and space. Many global firms are setting up manufacturing and research hubs in cities like Bengaluru and Hyderabad. For years, India's robust service sector, especially IT and finance, has been well-known, contributing to exports.<h2>Foreign investment in India is growing, and exports include high-tech and research-intensive items now</h2>India continues to be a destination for foreign investment. In the financial year 2024, the International Finance Corporation, for instance, provided $4.2 billion in green energy and infrastructure investments. India's total exports, including goods and services, hit a record high in the financial year 2024-25, estimated at $824.9 billion by the Reserve Bank of India. And these exports include high-end items like smartphones, pharmaceuticals and textiles. <a href="https://www.wionews.com/videos/trump-pushes-apple-to-halt-india-production-9074849/embed">https://www.wionews.com/videos/trump-pushes-apple-to-halt-india-production-9074849/embed</a><h2>India's global economic standing is reflected in annual rankings</h2>The IMF and World Bank have regularly referred to India as a ‘bright spot' amid economic headwinds in the world, contributing 16 per cent to global growth. India's success in space missions and becoming a manufacturing and export hub for iPhones highlight innovation and industrial growth.<h2>Indian government is investing more in infrastructure, economic activity is growing&nbsp;</h2>Indian budget allocations for infrastructure are upwards of ₹10 trillion, including for roads, airports, and clean energy. Economic activity is also driven by employment guarantee programmes like MGNREGA, which employ 80 million people. Electricity access has reached 99.6 per cent of Indian villages by 2020. Food subsidies enhance inclusivity and reduce poverty.<h2>Why is Trump dismissive of Indian economy? Some issues remain</h2>There are certain areas that need to be addressed. One is youth unemployment, and jobs being concentrated in the informal sector. There have been reports of income inequality, and savings gaps, particularly among the rural population. Programmes like Aadhaar-linked transfers and food rationing are reducing poverty. &nbsp; There has been criticism of some policies like demonetisation of 2016 &nbsp;and the implementation of GST as hurting jobs and small businesses.&nbsp;But these reforms helped formalise the Indian economy, which continues to show growth. Annual growth of 6 to 7 per cent is pretty good for a developing economy of India's size.<h2>Those who support Trump's view of Indian economy should note that…</h2>In short, India’s economy is robust and vibrant, not dead or stagnating. With 6.4 per cent projected growth in 2025, a young and tech-skilled workforce, $800 billion in exports, and global recognition as a bright spot, India is a dynamic player in world economy. Challenges like unemployment, income inequality, and trade risks exist but are manageable . Trump’s ‘dead economy’ remark is obviously an exaggeration. India continues to be on a path to becoming the third-largest economy by 2027.&nbsp;

India’s economy is robust and vibrant, not dead or stagnating. With 6.4 per cent projected growth in 2025, a young and tech-skilled workforce, $800 billion in exports, and global recognition as a bright spot, India is a dynamic player in world economy

Donald Trump called India a ‘dead economy’ while announcing 25 per cent tariffs and penalties. The Indian opposition leader Rahul Gandhi agreed that India is a dead economy. But is it even a financial term, and is India indeed a dead economy? Here is what you should know: Is ‘dead economy’ a formal financial term? No, "dead economy" is not a term used in economics or finance. GDP growth, unemployment, inflation, or industrial output are the general criteria for checking the health of an economy, not vague, rhetorical terms like ‘dead economy.’ Is India a ‘dead economy’? Reasons why it is not For argument's sake, let us take the dead economy jibe of Trump seriously and analyse India, one of the world’s fastest-growing major economies. Below is an exploration of India's economic activity and global positioning, to debunk Trump's claims supported by a section of Indian politicians. India GDP growth at a steady pace despite global uncertainties India is projected to grow at 6.4 per cent in 2025 and 2026 as per recent IMF estimates. This growth rate is better than major economies like the US (1.9 pc) and Japan (0.7 pc). In the fiscal year 2023–2024, India’s real GDP growth reached 9.2 per cent, the highest in more than a decade. For the third quarter of 2024–2025, growth was at 6.2 pc, year on year. India is the fourth-largest economy by nominal GDP, valued at $4.187 trillion in 2025, slightly ahead of Japan, and the third-largest by purchasing power parity or PPP. India is set to become the third-largest by nominal GDP by 2027. Domestic demand remains strong in India Private consumption in India grew by 7.4 per cent in the first quarter of financial year 2025, at a healthy 56 per cent of GDP. Interestingly, rural consumption, supported by better harvests and lower inflation, accounts for around 40 per cent of consumer goods sales. Private sector investment grew by 7.5 per cent in the first quarter of 2025 financial year, a sign of confidence in the Indian economy. India is blessed with a young and skilled workforce, unlike countries like US For decades now, India has enjoyed a relatively young population, with the median age at 28.8, compared to 38.5 in the US and 42.8 in Europe. This ‘demographic dividend’ is reflected in its tech-skilled workforce in fields like Artificial Intelligence, Information Technologies and space. Many global firms are setting up manufacturing and research hubs in cities like Bengaluru and Hyderabad. For years, India's robust service sector, especially IT and finance, has been well-known, contributing to exports. Foreign investment in India is growing, and exports include high-tech and research-intensive items now India continues to be a destination for foreign investment. In the financial year 2024, the International Finance Corporation, for instance, provided $4.2 billion in green energy and infrastructure investments. India's total exports, including goods and services, hit a record high in the financial year 2024-25, estimated at $824.9 billion by the Reserve Bank of India. And these exports include high-end items like smartphones, pharmaceuticals and textiles. https://www.wionews.com/videos/trump-pushes-apple-to-halt-india-production-9074849/embed India's global economic standing is reflected in annual rankings The IMF and World Bank have regularly referred to India as a ‘bright spot' amid economic headwinds in the world, contributing 16 per cent to global growth. India's success in space missions and becoming a manufacturing and export hub for iPhones highlight innovation and industrial growth. Indian government is investing more in infrastructure, economic activity is growing Indian budget allocations for infrastructure are upwards of ₹10 trillion, including for roads, airports, and clean energy. Economic activity is also driven by employment guarantee programmes like MGNREGA, which employ 80 million people. Electricity access has reached 99.6 per cent of Indian villages by 2020. Food subsidies enhance inclusivity and reduce poverty. Why is Trump dismissive of Indian economy? Some issues remain There are certain areas that need to be addressed. One is youth unemployment, and jobs being concentrated in the informal sector. There have been reports of income inequality, and savings gaps, particularly among the rural population. Programmes like Aadhaar-linked transfers and food rationing are reducing poverty. There has been criticism of some policies like demonetisation of 2016 and the implementation of GST as hurting jobs and small businesses. But these reforms helped formalise the Indian economy, which continues to show growth. Annual growth of 6 to 7 per cent is pretty good for a developing economy of India's size. Those who support Trump's view of Indian economy should note that… In short, India’s economy is robust and vibrant, not dead or stagnating. With 6.4 per cent projected growth in 2025, a young and tech-skilled workforce, $800 billion in exports, and global recognition as a bright spot, India is a dynamic player in world economy. Challenges like unemployment, income inequality, and trade risks exist but are manageable . Trump’s ‘dead economy’ remark is obviously an exaggeration. India continues to be on a path to becoming the third-largest economy by 2027.

India’s economy is robust and vibrant, not dead or stagnating. With 6.4 per cent projected growth in 2025, a young and tech-skilled workforce, $800 billion in exports, and global recognition as a bright spot, India is a dynamic player in world economy

Trump, Rahul Gandhi think India is a ‘dead economy’. It's not even a financial term and India is a global growth engine. Reasons why

US job growth likely slowed in July as the labour market continued to cool under pressure from heightened trade tensions, restrictive monetary policy, and seasonal factors. Economists expect July 31’s employment report from the Labor Department to show nonfarm payrolls increased by around 110,000 to 115,000 jobs in July, down from 147,000 in June. The unemployment rate is forecast to tick up to 4.2 per cent from 4.1 per cent in June, maintaining a narrow range seen since May. Despite the anticipated rise, the labour market remains historically strong, though evidence is mounting that momentum is fading.Federal Reserve Chair Jerome Powell, following the Fed’s recent decision to keep interest rates unchanged in the 4.25-4.50 per cent range, acknowledged signs of a slowing labour market but gave no clear indication of imminent rate cuts. “The July jobs report is unlikely to shake the Fed out of its 'wait-and-see' posture,” Gregory Daco, chief economist at EY-Parthenon, told Reuters. Markets have pushed back expectations for a rate cut from September to October or later.<h2>Tariffs, hiring freezes, and seasonal distortions weigh on job gains</h2>July’s modest job growth follows a June report that appeared stronger on the surface but was skewed by a surge in state and local government education jobs. That one-off seasonal factor likely reversed in July, economists say, dragging down overall payroll growth. Hiring has also been chilled by ongoing uncertainty around US President Donald Trump’s escalating trade wars. The White House imposed steep new tariffs, including a 35 per cent duty on Canadian goods, just ahead of a key trade deadline. Businesses, wary of rising input costs and future policy changes, have slowed hiring plans, particularly in the private sector.<h2>Labour market still resilient, but cracks are showing</h2>Recent data supports a picture of a gradually cooling labour market rather than a sharp downturn. The Job Openings and Labor Turnover Survey (JOLTS) showed job openings declined to 7.4 million in June, and the quits rate, a gauge of worker confidence, fell to its lowest since December. Initial jobless claims rose modestly last week to 218,000 but remain well within historical norms. Companies like Disney, Intel, and Starbucks have announced job cuts in recent months, but layoffs overall remain low. The labour` market continues to add jobs at a slower pace, averaging 130,000 per month this year, down from 168,000 in 2024 and sharply lower than the 400,000 monthly average during the post-Covid boom.While the labour market is still considered strong, policymakers are closely watching upcoming data, including a major payrolls benchmark revision in September that could retroactively show weaker job growth. If that revision reveals significant weakness, some economists believe the Fed could be forced to reconsider rate cuts before year’s end.&nbsp;(With inputs from agencies)

The unemployment rate is forecast to tick up to 4.2 per cent from 4.1 per cent in June, maintaining a narrow range seen since May. Despite the anticipated rise, the labour market remains historically strong, though evidence is mounting that momentum is fading.

US job growth likely slowed in July as the labour market continued to cool under pressure from heightened trade tensions, restrictive monetary policy, and seasonal factors. Economists expect July 31’s employment report from the Labor Department to show nonfarm payrolls increased by around 110,000 to 115,000 jobs in July, down from 147,000 in June. The unemployment rate is forecast to tick up to 4.2 per cent from 4.1 per cent in June, maintaining a narrow range seen since May. Despite the anticipated rise, the labour market remains historically strong, though evidence is mounting that momentum is fading. Federal Reserve Chair Jerome Powell, following the Fed’s recent decision to keep interest rates unchanged in the 4.25-4.50 per cent range, acknowledged signs of a slowing labour market but gave no clear indication of imminent rate cuts. “The July jobs report is unlikely to shake the Fed out of its 'wait-and-see' posture,” Gregory Daco, chief economist at EY-Parthenon, told Reuters. Markets have pushed back expectations for a rate cut from September to October or later. Tariffs, hiring freezes, and seasonal distortions weigh on job gains July’s modest job growth follows a June report that appeared stronger on the surface but was skewed by a surge in state and local government education jobs. That one-off seasonal factor likely reversed in July, economists say, dragging down overall payroll growth. Hiring has also been chilled by ongoing uncertainty around US President Donald Trump’s escalating trade wars. The White House imposed steep new tariffs, including a 35 per cent duty on Canadian goods, just ahead of a key trade deadline. Businesses, wary of rising input costs and future policy changes, have slowed hiring plans, particularly in the private sector. Labour market still resilient, but cracks are showing Recent data supports a picture of a gradually cooling labour market rather than a sharp downturn. The Job Openings and Labor Turnover Survey (JOLTS) showed job openings declined to 7.4 million in June, and the quits rate, a gauge of worker confidence, fell to its lowest since December. Initial jobless claims rose modestly last week to 218,000 but remain well within historical norms. Companies like Disney, Intel, and Starbucks have announced job cuts in recent months, but layoffs overall remain low. The labour` market continues to add jobs at a slower pace, averaging 130,000 per month this year, down from 168,000 in 2024 and sharply lower than the 400,000 monthly average during the post-Covid boom. While the labour market is still considered strong, policymakers are closely watching upcoming data, including a major payrolls benchmark revision in September that could retroactively show weaker job growth. If that revision reveals significant weakness, some economists believe the Fed could be forced to reconsider rate cuts before year’s end. (With inputs from agencies)

The unemployment rate is forecast to tick up to 4.2 per cent from 4.1 per cent in June, maintaining a narrow range seen since May. Despite the anticipated rise, the labour market remains historically strong, though evidence is mounting that momentum is fading.

US job growth slows in July amid tariff uncertainty and labour market cooling

Tech giant Apple has defied investor concerns over US trade policy, posting stronger-than-expected revenue for its fiscal third quarter. This comes as President Donald Trump’s tariffs added a staggering $800 million in costs last quarter and are projected to rise to $1.1 billion in the current one. According to Reuters, Apple reported $94.04 billion in revenue for the quarter ending June 28, marking a 9.6 per cent year-on-year increase, which was the fastest pace since the pandemic era. Earnings per share stood at $1.57, comfortably beating analyst forecasts of $1.43, as per LSEG data. Shares of the Cupertino-based firm rose 3 per cent in after-hours trading following its upbeat guidance for the current quarter. Apple now expects mid-to-high single-digit revenue growth, well above the 3.27 per cent Wall Street had predicted.<h2>Tariff shock, early buying</h2>Despite the strong results, Apple acknowledged the growing impact of Washington’s trade war. Speaking to Reuters, CEO Tim Cook said tariffs added $800 million to costs in the June quarter and are expected to add $1.1 billion in the current period. Cook also noted that some customers rushed to buy iPhones early to avoid potential price hikes. “We saw evidence in the early part of the quarter, specifically, of some pull-ahead related to the tariff announcements,” Cook told Reuters.&nbsp;Apple estimates that this “pull-ahead” demand accounted for roughly 1 percentage point of the company’s 9.6 per cent revenue growth. Emarketer analyst Jacob Bourne said this front-loaded demand was not surprising, telling Reuters, “The pull-forward in demand due to tariffs was somewhat expected given the uncertainty around pricing… but they still delivered exceptional results with iPhone growth.”<h2>iPhone leads the charge, China rebounds</h2>The iPhone, Apple’s flagship product, surged 13.5 per cent year-on-year to $44.58 billion in sales, well ahead of analyst estimates of $40.22 billion. Cook noted it was a strong quarter for seasonal upgrades of iPhones, Macs, and Apple Watches.&nbsp;In Greater China, Apple recorded $15.37 billion in revenue, reversing a decline seen in the previous quarter. Analysts from Visible Alpha, cited by Reuters, had expected $15.12 billion. Cook credited a Chinese subsidy programme for reviving smartphone demand. “It was the first full quarter of the subsidy playing out,” Cook said during a conference call with analysts.<h2>Services shine, AI efforts lag rivals</h2>Apple’s services division, which includes the App Store, iCloud, and Apple Music, brought in $27.42 billion, beating expectations of $26.8 billion, according to LSEG. However, not all segments outperformed. Sales of wearables such as AirPods and Apple Watches came in at $7.4 billion, missing the $7.82 billion target. iPad sales also fell short, at $6.58 billion versus an expected $7.24 billion. On the flip side, Mac sales exceeded forecasts, hitting $8.05 billion.&nbsp;Gross margins stood at 46.5 per cent, above LSEG estimates of 45.9 per cent, and Apple has forecast margins between 46 and 47 per cent for the current quarter. Despite the strong quarter, Apple still faces challenges. Its stock is down 17 per cent in 2025, lagging behind AI-focused rivals like Microsoft and Nvidia. Some investors remain concerned over Apple’s slower rollout of artificial intelligence features. Apple has delayed a new AI-enhanced version of Siri, but Cook insisted progress is being made. “Apple has always been about taking the most advanced technologies and making them easy to use and accessible for everyone, and that’s at the heart of our AI strategy,” Cook said, as quoted by Reuters.<h2>Production shifts, policy risks</h2>Amid tariff headwinds, Apple has been actively shifting its supply chain, moving more iPhone production to India and expanding manufacturing in Vietnam for Macs and Apple Watches. However, trade tensions continue to loom, with Trump warning India may face tariffs of up to 25 per cent as early as Friday, according to Reuters.&nbsp;While the long-term tariff landscape remains uncertain, Apple appears to be navigating the storm, leaning on early consumer purchases, production diversification, and continued strength in its ecosystem.&nbsp;(With inputs from the agencies)&nbsp;

The company saw a rebound in Greater China, generating $15.37 billion due to a subsidy program. Services revenue was $27.42 billion, exceeding expectations, while wearables and iPads fell short. Apple is shifting production to India and Vietnam amid trade uncertainties. 

Tech giant Apple has defied investor concerns over US trade policy, posting stronger-than-expected revenue for its fiscal third quarter. This comes as President Donald Trump’s tariffs added a staggering $800 million in costs last quarter and are projected to rise to $1.1 billion in the current one. According to Reuters, Apple reported $94.04 billion in revenue for the quarter ending June 28, marking a 9.6 per cent year-on-year increase, which was the fastest pace since the pandemic era. Earnings per share stood at $1.57, comfortably beating analyst forecasts of $1.43, as per LSEG data. Shares of the Cupertino-based firm rose 3 per cent in after-hours trading following its upbeat guidance for the current quarter. Apple now expects mid-to-high single-digit revenue growth, well above the 3.27 per cent Wall Street had predicted. Tariff shock, early buying Despite the strong results, Apple acknowledged the growing impact of Washington’s trade war. Speaking to Reuters, CEO Tim Cook said tariffs added $800 million to costs in the June quarter and are expected to add $1.1 billion in the current period. Cook also noted that some customers rushed to buy iPhones early to avoid potential price hikes. “We saw evidence in the early part of the quarter, specifically, of some pull-ahead related to the tariff announcements,” Cook told Reuters. Apple estimates that this “pull-ahead” demand accounted for roughly 1 percentage point of the company’s 9.6 per cent revenue growth. Emarketer analyst Jacob Bourne said this front-loaded demand was not surprising, telling Reuters, “The pull-forward in demand due to tariffs was somewhat expected given the uncertainty around pricing… but they still delivered exceptional results with iPhone growth.” iPhone leads the charge, China rebounds The iPhone, Apple’s flagship product, surged 13.5 per cent year-on-year to $44.58 billion in sales, well ahead of analyst estimates of $40.22 billion. Cook noted it was a strong quarter for seasonal upgrades of iPhones, Macs, and Apple Watches. In Greater China, Apple recorded $15.37 billion in revenue, reversing a decline seen in the previous quarter. Analysts from Visible Alpha, cited by Reuters, had expected $15.12 billion. Cook credited a Chinese subsidy programme for reviving smartphone demand. “It was the first full quarter of the subsidy playing out,” Cook said during a conference call with analysts. Services shine, AI efforts lag rivals Apple’s services division, which includes the App Store, iCloud, and Apple Music, brought in $27.42 billion, beating expectations of $26.8 billion, according to LSEG. However, not all segments outperformed. Sales of wearables such as AirPods and Apple Watches came in at $7.4 billion, missing the $7.82 billion target. iPad sales also fell short, at $6.58 billion versus an expected $7.24 billion. On the flip side, Mac sales exceeded forecasts, hitting $8.05 billion. Gross margins stood at 46.5 per cent, above LSEG estimates of 45.9 per cent, and Apple has forecast margins between 46 and 47 per cent for the current quarter. Despite the strong quarter, Apple still faces challenges. Its stock is down 17 per cent in 2025, lagging behind AI-focused rivals like Microsoft and Nvidia. Some investors remain concerned over Apple’s slower rollout of artificial intelligence features. Apple has delayed a new AI-enhanced version of Siri, but Cook insisted progress is being made. “Apple has always been about taking the most advanced technologies and making them easy to use and accessible for everyone, and that’s at the heart of our AI strategy,” Cook said, as quoted by Reuters. Production shifts, policy risks Amid tariff headwinds, Apple has been actively shifting its supply chain, moving more iPhone production to India and expanding manufacturing in Vietnam for Macs and Apple Watches. However, trade tensions continue to loom, with Trump warning India may face tariffs of up to 25 per cent as early as Friday, according to Reuters. While the long-term tariff landscape remains uncertain, Apple appears to be navigating the storm, leaning on early consumer purchases, production diversification, and continued strength in its ecosystem. (With inputs from the agencies)

Apple reported stronger-than-expected Q3 revenue of $94.04 billion, a 9.6% year-on-year increase, despite $800 million in tariff-related costs. Earnings per share reached $1.57, surpassing analyst predictions. iPhone sales grew 13.5% to $44.58 billion.

Apple beats Wall Street forecasts despite $1.1 billion tariff hit, iPhone sales surge

Mark Zuckerberg has overtaken Jeff Bezos to become the third-richest person in the world with a nearly 12 per cent increase of about $28.4 billion. Zuckerberg holds roughly 13 per cent of Meta's earnings, which is valued as of August 2025 at $268.4 billion, compared to Jeff Bezos, who is valued at $247.4 billion. Elon Musk remains the world’s richest person with an expected wealth of $403.5 billion.&nbsp;<h2>Forbes wealth ranking, August 1, 2025</h2><ol><li>Elon Musk - Tesla CEO, Elon Musk has held the position since May 2024</li><li>Larry Ellison - Oracle's chief, holds the second position for the second month in a row, with an expected valuation of $306 billion</li><li>Mark Zuckerberg - Meta CEO, has had good fortune following the 40 per cent jump in the share price since falling to its lowest point in April.&nbsp;</li><li>Jeff Bezos - Amazon Founder, Bezos, who was in the news for his extravagant wedding, is valued at $247.4 billion with a 7 per cent rise in Amazon shares.</li><li>Larry Page - Co-founder of Google, Larry Page is valued at $158B with a 9 per cent uptick in Alphabet shares.</li><li>Jensen Huang - NVIDIA CEO is valued $154.8 billion, and owns 3 per cent of the company.</li><li>&nbsp;Sergey Brin - &nbsp;He is also the co-founder of Google; his wealth increased by $11.3 billion, estimated at $150.8 billion.</li><li>Steve Ballmer - Former Microsoft CEO, Steve Ballmer's net worth is $148.7 billion, gained $7.5 billion over the past month due to the 7% surge in Microsoft shares.&nbsp;</li><li>Warren Buffett- The 94-year-old value decreased by 1 per cent over the last month and dropped from 6th to 9th with an estimated value of $143.4 billion</li><li>Bernard Arnault- He dropped from 9th to 10th even after adding $4.5 billion to his net worth. He is now valued at $142.9 billion.</li></ol>Notably, Mark Zuckerberg's wealth has increased by over $100 billion in 2025 alone, one of the largest jumps among the billionaires as tracked by Bloomberg and Forbes. Bloomberg had already put Zuckerberg ahead of Bezos in May, but Forbes ranked him ahead in August. These changes in the ranking of Zuckerberg and Bezos are related to the fluctuation of share prices, as both of the billionaires' net worth are heavily tied to their equity holdings.&nbsp;&nbsp;

Mark Zuckerberg had surpassed Jeff Bezos to become the third richest person in the world in 2025, owing to the 11 per cent surge in Meta stock price.

Mark Zuckerberg has overtaken Jeff Bezos to become the third-richest person in the world with a nearly 12 per cent increase of about $28.4 billion. Zuckerberg holds roughly 13 per cent of Meta's earnings, which is valued as of August 2025 at $268.4 billion, compared to Jeff Bezos, who is valued at $247.4 billion. Elon Musk remains the world’s richest person with an expected wealth of $403.5 billion. Forbes wealth ranking, August 1, 2025 Elon Musk - Tesla CEO, Elon Musk has held the position since May 2024 Larry Ellison - Oracle's chief, holds the second position for the second month in a row, with an expected valuation of $306 billion Mark Zuckerberg - Meta CEO, has had good fortune following the 40 per cent jump in the share price since falling to its lowest point in April. Jeff Bezos - Amazon Founder, Bezos, who was in the news for his extravagant wedding, is valued at $247.4 billion with a 7 per cent rise in Amazon shares. Larry Page - Co-founder of Google, Larry Page is valued at $158B with a 9 per cent uptick in Alphabet shares. Jensen Huang - NVIDIA CEO is valued $154.8 billion, and owns 3 per cent of the company. Sergey Brin - He is also the co-founder of Google; his wealth increased by $11.3 billion, estimated at $150.8 billion. Steve Ballmer - Former Microsoft CEO, Steve Ballmer's net worth is $148.7 billion, gained $7.5 billion over the past month due to the 7% surge in Microsoft shares. Warren Buffett- The 94-year-old value decreased by 1 per cent over the last month and dropped from 6th to 9th with an estimated value of $143.4 billion Bernard Arnault- He dropped from 9th to 10th even after adding $4.5 billion to his net worth. He is now valued at $142.9 billion. Notably, Mark Zuckerberg's wealth has increased by over $100 billion in 2025 alone, one of the largest jumps among the billionaires as tracked by Bloomberg and Forbes. Bloomberg had already put Zuckerberg ahead of Bezos in May, but Forbes ranked him ahead in August. These changes in the ranking of Zuckerberg and Bezos are related to the fluctuation of share prices, as both of the billionaires' net worth are heavily tied to their equity holdings.

Mark Zuckerberg had surpassed Jeff Bezos to become the third richest person in the world in 2025, owing to the 11 per cent surge in Meta stock price.

Zuckerberg overtakes Bezos: Top 10 richest people in the world in 2025

Factory floors across Asia fell quiet in July, with new data revealing a sharp slowdown in manufacturing activity, underscoring the toll of US President Donald Trump’s tariffs and weak Chinese demand. Yet amid the gloom, India emerged as a rare bright spot, posting its strongest factory growth in over a year. According to private surveys cited by Reuters, key export-heavy economies including China, Japan, and South Korea saw factory activity shrink last month. The purchasing managers’ index (PMI) for each of these economies fell below the neutral 50 mark, signalling contraction. In contrast, India’s PMI surged to its highest level in 16 months, driven by resilient domestic demand and strong order books. The mixed regional picture reflects mounting pressure on Asia’s manufacturing base, once considered the global engine of growth. While new trade deals signed in late July between the US, Japan, and South Korea have since helped ease some tariff-related concerns, their benefits may take time to materialise.

Asia’s July Manufacturing PMIs<figure class="table"><table><tbody><tr><td>Country</td><td>July PMI</td><td>June PMI</td></tr><tr><td>India</td><td>59.1</td><td>58.4</td></tr><tr><td>China</td><td>49.5</td><td>50.4</td></tr><tr><td>Japan</td><td>48.9</td><td>50.1</td></tr><tr><td>South Korea</td><td>48.0</td><td>48.7</td></tr><tr><td>Taiwan</td><td>&lt;50</td><td>&lt;50</td></tr><tr><td>Indonesia</td><td>&lt;50</td><td>&lt;50</td></tr><tr><td>Malaysia</td><td>&lt;50</td><td>&lt;50</td></tr><tr><td>Vietnam</td><td>&gt;50</td><td>&gt;50</td></tr><tr><td>Philippines</td><td>&gt;50</td><td>&gt;50</td></tr></tbody></table></figure>(Note: A PMI below 50 signals contraction; above 50 signals growth.)(Source: S&amp;P Global / Reuters)

In India, the HSBC Manufacturing PMI rose to 59.1 in July from 58.4 in June, according to S&amp;P Global. While demand remained strong, analysts cited a “darkening” business outlook due to inflation worries and mounting competition. “Despite strong order flows, business confidence fell to a three-year low,” noted a Reuters report, adding that hiring activity also slowed to its weakest pace since November 2024.&nbsp;In China, the S&amp;P Global Manufacturing PMI dropped to 49.5 in July from 50.4 in June, slipping below the neutral 50 mark and undershooting economists’ expectations, according to a Reuters poll. The decline comes just a day after official Chinese data also showed factory output shrinking for the fourth straight month, signalling a deeper demand slowdown. “The data provides further evidence that China’s economy lost some momentum last month, largely due to domestic weakness,” said Zichun Huang, economist at Capital Economics, as quoted by Reuters.&nbsp;In Japan, the PMI slipped to 48.9 in July from 50.1 in June, another sign that Trump’s tariffs are weighing heavily on the world’s fourth-largest economy. “It will be important to see if this [Japan-US trade deal] translates into greater client confidence and improved sales in the months ahead,” said Annabel Fiddes, associate director at S&amp;P Global Market Intelligence, which compiles the PMI data.&nbsp;In South Korea, factory activity contracted for the sixth straight month, with the PMI falling to 48.0 in July from 48.7 the previous month. Economists noted that both production and new orders fell more sharply, worsened by uncertainty over US tariffs “Weakness in the domestic economy was compounded by the impacts of US tariff policy,” said Usamah Bhatti, economist at S&amp;P Global, as quoted by Reuters.&nbsp;Most of the PMI surveys were conducted before the recent trade deals between the US, Japan, and South Korea, which lowered threatened tariff rates from 25 per cent to 15 per cent. While these agreements offer some hope, analysts say the full benefit may only be visible in coming months. There was some resilience in Southeast Asia, where Vietnam and the Philippines recorded expansion in factory activity, suggesting that supply chain shifts and regional demand may be offering partial buffers. But for now, the bigger picture remains sobering.<h2>What it means for Asia?</h2>Most PMI surveys were conducted before&nbsp;the recent tariff truce deals between Washington and its Asian allies, which slashed threatened US tariff rates from 25 per cent to 15 per cent. While these moves provide some relief, analysts warn the full impact may take months to reflect in data. Meanwhile, India could face fresh headwinds of its own. President Trump is expected to impose 25 per cent tariffs on select Indian goods starting Friday, a move that could dent export momentum. At the same time, the Reserve Bank of India is expected to hold interest rates steady next week, but rising inflation could complicate the central bank’s calculus.&nbsp;The message from the region’s factory floors is clear: Asia’s manufacturing story is diverging. While India powers ahead, buoyed by domestic resilience, major exporters like China, Japan, and South Korea are increasingly caught in the crosshairs of global trade tension.&nbsp;(With inputs from the agencies)

Key countries like China, Japan, and South Korea experienced contracting manufacturing activity, as reflected in their PMIs, which fell below the neutral 50 mark. Although recent trade deals may reduce tariff uncertainty, their impact remains uncertain. 

Factory floors across Asia fell quiet in July, with new data revealing a sharp slowdown in manufacturing activity, underscoring the toll of US President Donald Trump’s tariffs and weak Chinese demand. Yet amid the gloom, India emerged as a rare bright spot, posting its strongest factory growth in over a year. According to private surveys cited by Reuters, key export-heavy economies including China, Japan, and South Korea saw factory activity shrink last month. The purchasing managers’ index (PMI) for each of these economies fell below the neutral 50 mark, signalling contraction. In contrast, India’s PMI surged to its highest level in 16 months, driven by resilient domestic demand and strong order books. The mixed regional picture reflects mounting pressure on Asia’s manufacturing base, once considered the global engine of growth. While new trade deals signed in late July between the US, Japan, and South Korea have since helped ease some tariff-related concerns, their benefits may take time to materialise.

Asia's factory activity significantly declined in July, largely due to President Trump’s trade tariffs and waning Chinese demand, signaling a slowdown in the region's economic recovery.

Asia’s factory activity slumps as Trump’s tariffs hit exports

On Friday, Gold prices edged higher as global markets digested US President Donald Trump’s sweeping new tariffs on trading partners, even as the precious metal remained on course for a weekly loss. Spot gold rose 0.1 per cent to $3,291.46 an ounce by 7:45 a.m. in Singapore, as per Bloomberg. The slight uptick comes after bullion ended the previous session 0.5 per cent higher, though prices are still down about 1.4 per cent for the week. The metal’s gains came after the White House unveiled final tariff rates, a key piece of Trump’s protectionist agenda. As per Bloomberg, the US will enforce a minimum global tariff of 10 per cent, while imports from countries running trade surpluses with the US will face tariffs of 15 per cent or higher, starting August 1.<h2>Trade war fear keeps the yellow metal demand alive</h2>While the market reaction to Trump’s announcement was relatively muted, the broader theme of trade conflict and economic uncertainty continues to support gold’s appeal as a safe haven. Gold has reportedly surged nearly 25 per cent this year, hitting a record above $3,500 an ounce in April, largely driven by fears of a global trade war, persistent geopolitical risks, and central bank buying.&nbsp;“Trump’s tariff agenda and concerns about a global trade war have been a major catalyst for gold’s surge,” Bloomberg noted. However, the momentum has slowed in recent months. Despite frequent tariff threats and ongoing geopolitical tensions, gold has traded within a tight range, as investors appear to have grown more accustomed to the noise of trade disputes.<h2>Dollar strength a key headwind</h2>Another factor capping gold’s upside is a resurgent US dollar. As per Bloomberg, the Bloomberg Dollar Spot Index closed out its best month of 2025 in July, making dollar-priced gold more expensive for buyers using other currencies.&nbsp;The stronger dollar, combined with expectations of delayed interest rate cuts by the Federal Reserve, has created a challenging environment for gold bulls. The Fed has hinted it may not ease policy until at least October, especially with tariffs likely to keep US inflation elevated.<h2>Eyes on US job data</h2>Looking ahead, all eyes are on Friday’s US non-farm payrolls report for July, expected to show a slowdown in job growth and a potential rise in the unemployment rate. Any sign of labour market weakness could boost expectations for Fed easing and potentially support gold.&nbsp;Meanwhile, silver held steady, while platinum and palladium posted modest gains in early Friday trade, according to Bloomberg data. For now, gold remains in a wait-and-watch mode as it has been caught between the push of haven demand and the pull of a strong dollar.(With inputs from the agencies)

The tariffs, effective August 1, include a 10% minimum global rate and higher tariffs for surplus countries. Gold’s appeal as a safe haven persists due to ongoing trade war fears, while a strong dollar and delayed Fed rate cuts pose challenges.

On Friday, Gold prices edged higher as global markets digested US President Donald Trump’s sweeping new tariffs on trading partners, even as the precious metal remained on course for a weekly loss. Spot gold rose 0.1 per cent to $3,291.46 an ounce by 7:45 a.m. in Singapore, as per Bloomberg. The slight uptick comes after bullion ended the previous session 0.5 per cent higher, though prices are still down about 1.4 per cent for the week. The metal’s gains came after the White House unveiled final tariff rates, a key piece of Trump’s protectionist agenda. As per Bloomberg, the US will enforce a minimum global tariff of 10 per cent, while imports from countries running trade surpluses with the US will face tariffs of 15 per cent or higher, starting August 1. Trade war fear keeps the yellow metal demand alive While the market reaction to Trump’s announcement was relatively muted, the broader theme of trade conflict and economic uncertainty continues to support gold’s appeal as a safe haven. Gold has reportedly surged nearly 25 per cent this year, hitting a record above $3,500 an ounce in April, largely driven by fears of a global trade war, persistent geopolitical risks, and central bank buying. “Trump’s tariff agenda and concerns about a global trade war have been a major catalyst for gold’s surge,” Bloomberg noted. However, the momentum has slowed in recent months. Despite frequent tariff threats and ongoing geopolitical tensions, gold has traded within a tight range, as investors appear to have grown more accustomed to the noise of trade disputes. Dollar strength a key headwind Another factor capping gold’s upside is a resurgent US dollar. As per Bloomberg, the Bloomberg Dollar Spot Index closed out its best month of 2025 in July, making dollar-priced gold more expensive for buyers using other currencies. The stronger dollar, combined with expectations of delayed interest rate cuts by the Federal Reserve, has created a challenging environment for gold bulls. The Fed has hinted it may not ease policy until at least October, especially with tariffs likely to keep US inflation elevated. Eyes on US job data Looking ahead, all eyes are on Friday’s US non-farm payrolls report for July, expected to show a slowdown in job growth and a potential rise in the unemployment rate. Any sign of labour market weakness could boost expectations for Fed easing and potentially support gold. Meanwhile, silver held steady, while platinum and palladium posted modest gains in early Friday trade, according to Bloomberg data. For now, gold remains in a wait-and-watch mode as it has been caught between the push of haven demand and the pull of a strong dollar. (With inputs from the agencies)

Gold prices rose slightly by 0.1% to $3,291.46 per ounce amid the market's reaction to President Trump's new tariffs but are down 1.4% for the week.

Gold gains slightly as Trump’s tariff rollout keeps markets cautious

On Friday, oil prices paused for breath. This comes as it was teetering between two conflicting forces, fears of slowing global demand triggered by US tariffs, and threats of supply disruptions from Russia that could tighten markets. As per Reuters, Brent crude futures inched up by just 4 cents to $71.74 a barrel at 1201 GMT, while US West Texas Intermediate (WTI) crude edged a mere 1 cent higher to $69.27. Despite the quiet session, both benchmarks were on track for weekly gains, 4.9% for Brent and a stronger 6.4% for WTI.<h2>Tariff threats complicate the outlook</h2>At the centre of the volatility is US President Donald Trump’s aggressive new trade offensive. On Thursday, Trump signed an executive order imposing steep tariffs, between 10 per cent and 41 per cent, on US imports from dozens of countries, including Canada, India, and Taiwan. The order targets nations that failed to meet Trump’s August 1 deadline to strike bilateral trade agreements with Washington. These sweeping tariffs are already showing ripple effects in the US economy, as per Reuters. In June, inflation ticked up as duties drove prices higher on imported goods ranging from furniture to recreational products, adding to concerns that consumer spending may be squeezed.&nbsp;This, in turn, could weigh on fuel demand. Analysts warn that higher costs and delayed Federal Reserve rate cuts could limit economic growth, indirectly suppressing oil consumption in the world’s largest crude consumer. “The levies will limit economic growth by raising prices, which would weigh on oil consumption,” analysts cautioned in remarks quoted by Reuters.<h2>Russian oil supply caught in the crosshairs</h2>Yet while demand-side worries linger, supply-side jitters are keeping a floor under oil prices. Earlier this week, Trump threatened secondary sanctions on countries that continue to buy Russian crude, which notably includes China and India, who are the second and third-largest oil consumers in the world. The major goal of Trump's ultimatum is to economically isolate Moscow and force an end to its war against Ukraine.&nbsp;The move has sparked unease in global oil markets. According to a note from JP Morgan, also cited by Reuters, as much as 2.75 million barrels per day of Russian seaborne oil exports could be at risk if Washington proceeds with penalising buyers. “The Trump administration, like its predecessors, will likely find sanctioning the world’s second-largest oil exporter unfeasible without spiking oil prices,” JP Morgan analysts wrote. Even the threat of such tariffs has already started reshuffling global trade flows, with refiners and shippers reassessing exposure to Russian barrels. In the short term, this could tighten supply and lend support to oil prices.<h2>What happens next?</h2>Markets now face a delicate balancing act. Will Trump’s tariff escalation choke off global growth? Or will Russian supply threats dominate headlines and keep prices elevated? What’s clear is that geopolitics, not just fundamentals and will continue to drive volatility in oil markets.&nbsp;With US inflation rising and the Federal Reserve potentially delaying interest rate cuts until October, as reported by Reuters, any sustained rise in oil prices could further complicate the policy outlook. For now, oil traders are caught between two opposing forces, a world that might consume less, and a world that might produce less.&nbsp;And in the middle of it all is a global economy trying to dodge both a trade war and an oil shock.&nbsp;(With inputs from the agencies)

Brent crude slightly rose to $71.74 a barrel, while WTI increased to $69.27, both on course for weekly gains. Trump new tariffs may limit economic growth, impacting oil consumption. Concurrently, threats of sanctions on countries buying Russian crude add to market anxiety. 

On Friday, oil prices paused for breath. This comes as it was teetering between two conflicting forces, fears of slowing global demand triggered by US tariffs, and threats of supply disruptions from Russia that could tighten markets. As per Reuters, Brent crude futures inched up by just 4 cents to $71.74 a barrel at 1201 GMT, while US West Texas Intermediate (WTI) crude edged a mere 1 cent higher to $69.27. Despite the quiet session, both benchmarks were on track for weekly gains, 4.9% for Brent and a stronger 6.4% for WTI. Tariff threats complicate the outlook At the centre of the volatility is US President Donald Trump’s aggressive new trade offensive. On Thursday, Trump signed an executive order imposing steep tariffs, between 10 per cent and 41 per cent, on US imports from dozens of countries, including Canada, India, and Taiwan. The order targets nations that failed to meet Trump’s August 1 deadline to strike bilateral trade agreements with Washington. These sweeping tariffs are already showing ripple effects in the US economy, as per Reuters. In June, inflation ticked up as duties drove prices higher on imported goods ranging from furniture to recreational products, adding to concerns that consumer spending may be squeezed. This, in turn, could weigh on fuel demand. Analysts warn that higher costs and delayed Federal Reserve rate cuts could limit economic growth, indirectly suppressing oil consumption in the world’s largest crude consumer. “The levies will limit economic growth by raising prices, which would weigh on oil consumption,” analysts cautioned in remarks quoted by Reuters. Russian oil supply caught in the crosshairs Yet while demand-side worries linger, supply-side jitters are keeping a floor under oil prices. Earlier this week, Trump threatened secondary sanctions on countries that continue to buy Russian crude, which notably includes China and India, who are the second and third-largest oil consumers in the world. The major goal of Trump's ultimatum is to economically isolate Moscow and force an end to its war against Ukraine. The move has sparked unease in global oil markets. According to a note from JP Morgan, also cited by Reuters, as much as 2.75 million barrels per day of Russian seaborne oil exports could be at risk if Washington proceeds with penalising buyers. “The Trump administration, like its predecessors, will likely find sanctioning the world’s second-largest oil exporter unfeasible without spiking oil prices,” JP Morgan analysts wrote. Even the threat of such tariffs has already started reshuffling global trade flows, with refiners and shippers reassessing exposure to Russian barrels. In the short term, this could tighten supply and lend support to oil prices. What happens next? Markets now face a delicate balancing act. Will Trump’s tariff escalation choke off global growth? Or will Russian supply threats dominate headlines and keep prices elevated? What’s clear is that geopolitics, not just fundamentals and will continue to drive volatility in oil markets. With US inflation rising and the Federal Reserve potentially delaying interest rate cuts until October, as reported by Reuters, any sustained rise in oil prices could further complicate the policy outlook. For now, oil traders are caught between two opposing forces, a world that might consume less, and a world that might produce less. And in the middle of it all is a global economy trying to dodge both a trade war and an oil shock. (With inputs from the agencies)

Oil prices stabilised on Friday amid conflicting pressures: apprehensions about descending global demand due to US tariffs, and potential supply disruptions from Russia.

Oil holds as Trump’s tariff war clashes with Russian supply fears

The Enforcement Directorate (ED) has summoned Reliance Group chairman Anil Ambani on August 5 for questioning in connection with an alleged Rs 3,000 crore worth bank loan fraud-linked money laundering case. This comes almost a week after the ED conducted simultaneous raids at premises linked to Anil Ambani's Reliance Group (RAAGA Companies) in connection with a money laundering investigation related to the Yes Bank loan fraud case. The raids were launched on July 24 as part of the alleged bank fraud as well as multiple other allegations of financial irregularities.&nbsp;According to Indian news agency PTI, officials on Saturday last week said over 35 premises across Mumbai and Delhi, involving 50 companies and about 25 individuals, were being searched under the Prevention of Money Laundering Act (PMLA). Multiple reports quoted ED sources and indicated that they are investigating allegations of illegal loan diversion of approximately Rs 3,000 crore from Yes Bank between 2017 and 2019. The loan was reportedly diverted to shell firms and other group entities. Investigators have also discovered proof indicating possible bribery of Yes Bank officials, including its promoter.<h3>Why is the ED investigating Anil Ambani?</h3>The investigative agency highlighted serious lapses in the approval process of the Yes Bank to Reliance Anil Ambani Group Companies, which also includes backdated credit documents. It also found banks giving loans to organisations or firms with weak financials and common directors, and the absence of due diligence. ED has also noted violations of loan terms, evergreening of accounts, and instances showing disbursal on the same day as or before loan approvals, according to a report by ET. &nbsp;Meanwhile, Securities and Exchange Board of India (SEBI) has also submitted findings in connection with the Reliance Home Finance Ltd. (RHFL), showing corporate loan booking more than doubled within a year, which raises serious concerns about irregularities and process violations.&nbsp;The ED claims this was a “well-thought-out and planned” scheme aimed at defrauding banks, shareholders, investors, and other public institutions by providing misleading information. The investigation uncovered several irregularities, such as loans given to unverified companies, the use of the same director and address across multiple firms, and a lack of loan documentation. It also discovered transfer of funds to shell companies and the issuing of new loans to repay old ones (loan evergreen strategy). The actions of the ED are based on two FIRs filed by the Central Bureau of Investigation (CBI), which alleged large-scale financial irregularities. Additionally, information from agencies like SEBI, the National Housing Bank, Bank of Baroda, and the National Financial Reporting Authority (NFRA) also contributed to advancing the investigation.&nbsp;The State Bank of India (SBI) also declared Anil Ambani’s company Reliance Communications (RCom) and Anil Ambani himself as “fraudulent” a few years ago. SBI alleges RCom misused loans worth Rs 31,580 crore after taking them from the bank. Out of this amount, around Rs 13,667 crore was used to repay loans of other companies, while Rs 12,692 crore was transferred to other companies within the Reliance Group, according to a report in Dainik Bhaskar. SBI also said that it is in the process of filing a complaint with the Central Bureau of Investigation (CBI) regarding the matter. Additionally, personal insolvency proceedings against Anil Ambani are currently underway at the National Company Law Tribunal (NCLT) in Mumbai.<h3>Reliance responds</h3>Meanwhile, Reliance Infrastructure Limited (Reliance Infrastructure) and Reliance Power Limited (Reliance Power) released a statement clarifying that the recent actions have absolutely no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of Reliance Infrastructure and Reliance Power.

The ED has summoned Anil Ambani over a ₹3,000 crore money laundering case linked to Yes Bank loan fraud. Raids revealed alleged loan diversion, shell firms, and financial irregularities. SBI and other agencies have flagged serious concerns against his companies.

The Enforcement Directorate (ED) has summoned Reliance Group chairman Anil Ambani on August 5 for questioning in connection with an alleged Rs 3,000 crore worth bank loan fraud-linked money laundering case. This comes almost a week after the ED conducted simultaneous raids at premises linked to Anil Ambani's Reliance Group (RAAGA Companies) in connection with a money laundering investigation related to the Yes Bank loan fraud case. The raids were launched on July 24 as part of the alleged bank fraud as well as multiple other allegations of financial irregularities. According to Indian news agency PTI, officials on Saturday last week said over 35 premises across Mumbai and Delhi, involving 50 companies and about 25 individuals, were being searched under the Prevention of Money Laundering Act (PMLA). Multiple reports quoted ED sources and indicated that they are investigating allegations of illegal loan diversion of approximately Rs 3,000 crore from Yes Bank between 2017 and 2019. The loan was reportedly diverted to shell firms and other group entities. Investigators have also discovered proof indicating possible bribery of Yes Bank officials, including its promoter. Why is the ED investigating Anil Ambani? The investigative agency highlighted serious lapses in the approval process of the Yes Bank to Reliance Anil Ambani Group Companies, which also includes backdated credit documents. It also found banks giving loans to organisations or firms with weak financials and common directors, and the absence of due diligence. ED has also noted violations of loan terms, evergreening of accounts, and instances showing disbursal on the same day as or before loan approvals, according to a report by ET. Meanwhile, Securities and Exchange Board of India (SEBI) has also submitted findings in connection with the Reliance Home Finance Ltd. (RHFL), showing corporate loan booking more than doubled within a year, which raises serious concerns about irregularities and process violations. The ED claims this was a “well-thought-out and planned” scheme aimed at defrauding banks, shareholders, investors, and other public institutions by providing misleading information. The investigation uncovered several irregularities, such as loans given to unverified companies, the use of the same director and address across multiple firms, and a lack of loan documentation. It also discovered transfer of funds to shell companies and the issuing of new loans to repay old ones (loan evergreen strategy). The actions of the ED are based on two FIRs filed by the Central Bureau of Investigation (CBI), which alleged large-scale financial irregularities. Additionally, information from agencies like SEBI, the National Housing Bank, Bank of Baroda, and the National Financial Reporting Authority (NFRA) also contributed to advancing the investigation. The State Bank of India (SBI) also declared Anil Ambani’s company Reliance Communications (RCom) and Anil Ambani himself as “fraudulent” a few years ago. SBI alleges RCom misused loans worth Rs 31,580 crore after taking them from the bank. Out of this amount, around Rs 13,667 crore was used to repay loans of other companies, while Rs 12,692 crore was transferred to other companies within the Reliance Group, according to a report in Dainik Bhaskar. SBI also said that it is in the process of filing a complaint with the Central Bureau of Investigation (CBI) regarding the matter. Additionally, personal insolvency proceedings against Anil Ambani are currently underway at the National Company Law Tribunal (NCLT) in Mumbai. Reliance responds Meanwhile, Reliance Infrastructure Limited (Reliance Infrastructure) and Reliance Power Limited (Reliance Power) released a statement clarifying that the recent actions have absolutely no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of Reliance Infrastructure and Reliance Power.

The ED has summoned Anil Ambani over a ₹3,000 crore money laundering case linked to Yes Bank loan fraud. Raids revealed alleged loan diversion, shell firms, and financial irregularities. SBI and other agencies have flagged serious concerns against his companies.

Anil Ambani summoned by ED in $361 million loan fraud case: Why is the probe agency investigating him