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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

Indian state refiners have stopped buying Russian oil in the past week, citing discounts narrowed this month, the industry sources told Reuters. This comes amid US President Donald Trump warning India against buying oil from Russia as Moscow intensifies its war with Ukraine.&nbsp;Several state refiners of India, including Indian Oil Corp (IOC.NS), opens new tab, Hindustan Petroleum Corp (HPCL.NS), Bharat Petroleum Corp (BPCL.NS), and Mangalore Refinery Petrochemical Ltd (MRPL.NS), have not sought Russian crude in the past week, four sources familiar with the refiners' purchase told Reuters.&nbsp;Notably, India is the world's third-largest oil importer and the biggest buyer of seaborne Russian crude.&nbsp;However, the refiners have not responded to the request for comment yet.&nbsp;These four refiners regularly buy Russian oil on a delivered basis, but now they have turned to spot markets for replacement supply, including Middle Eastern grades such as Abu Dhabi's Murban crude and West African oil, sources said.&nbsp;State refiners control over 60 per cent of India's overall 5.2 million barrels per day refining capacity.<h2>Trump calls India, Russia's economy 'dead'</h2>Earlier today, Trump hit out at India for purchasing oil from Russia. This came hours after the US president announced 25 per cent tariffs on Indian imports.&nbsp;Trump said that he does not care about India's trade dealings with Russia, saying that the two "can take their dead economies down together".&nbsp;"I don't care what India does with Russia. They can take their dead economies down together, for all I care. We have done very little business with India; their tariffs are too high, among the highest in the world. Likewise, Russia and the USA do almost no business together. Let's keep it that way," Trump said in a post on Truth Social.&nbsp;On July 14, Trump even threatened 100 per cent tariffs on countries that buy Russian oil unless Moscow reaches a ceasefire and peace deal with Ukraine.&nbsp;

These four refiners regularly buy Russian oil on a delivered basis, but now they have turned to spot markets for replacement supply, including Middle Eastern grades such as Abu Dhabi's Murban crude and West African oil. 

Indian state refiners have stopped buying Russian oil in the past week, citing discounts narrowed this month, the industry sources told Reuters. This comes amid US President Donald Trump warning India against buying oil from Russia as Moscow intensifies its war with Ukraine. Several state refiners of India, including Indian Oil Corp (IOC.NS), opens new tab, Hindustan Petroleum Corp (HPCL.NS), Bharat Petroleum Corp (BPCL.NS), and Mangalore Refinery Petrochemical Ltd (MRPL.NS), have not sought Russian crude in the past week, four sources familiar with the refiners' purchase told Reuters. Notably, India is the world's third-largest oil importer and the biggest buyer of seaborne Russian crude. However, the refiners have not responded to the request for comment yet. These four refiners regularly buy Russian oil on a delivered basis, but now they have turned to spot markets for replacement supply, including Middle Eastern grades such as Abu Dhabi's Murban crude and West African oil, sources said. State refiners control over 60 per cent of India's overall 5.2 million barrels per day refining capacity. Trump calls India, Russia's economy 'dead' Earlier today, Trump hit out at India for purchasing oil from Russia. This came hours after the US president announced 25 per cent tariffs on Indian imports. Trump said that he does not care about India's trade dealings with Russia, saying that the two "can take their dead economies down together". "I don't care what India does with Russia. They can take their dead economies down together, for all I care. We have done very little business with India; their tariffs are too high, among the highest in the world. Likewise, Russia and the USA do almost no business together. Let's keep it that way," Trump said in a post on Truth Social. On July 14, Trump even threatened 100 per cent tariffs on countries that buy Russian oil unless Moscow reaches a ceasefire and peace deal with Ukraine.

These four refiners regularly buy Russian oil on a delivered basis, but now they have turned to spot markets for replacement supply, including Middle Eastern grades such as Abu Dhabi's Murban crude and West African oil.&nbsp;

Indian state refiners halt Russian oil imports amid Trump's 25% tariff and penalty threat

India has stood firm in its trade negotiations with the US, prioritising its national interests and protecting domestic industries. This is probably what's frustrating President Donald Trump, who announced 25 per cent tariffs and additional penalties on India, citing trade gap, high tariffs as well as non-tariff barriers, and trade in arms and energy with Russia. An Indian team has been negotiating with the US counterparts for a trade deal - reportedy to be worth nearly $118 billion - to avert the tariffs, but the Trump deadline of August 1 is unlikely to be met. There are some crucial sectors of Indian economy on which Prime Minister Narendra Modi's government will not compromise. This is both to protect domestic industries, and to prevent political fallout and possible criticism of selling out to the US.&nbsp;<h2>India won't rush into a trade deal with US</h2>Addressing parliament on Thursday (July 31), Trade Minister Piyush Goyal said the government "will protect the interests of our farmers, small industries and entrepreneurs."He said India will not rush into an agreement just to meet Trump's deadlines and will only accept a deal that aligns with its national interests.<h2>Protecting the Indian farmer: Agricultural sector safeguards are important for both Indian economy and politics</h2>India is keen to safeguard its farming sector, where the US has been seeking greater market access for products like maize, soybean and corn. Another issue of contention is genetically modified (GM) crops, which India has been resisting. More about it later. Allowing such imports in large amounts will hit domestic farmers as well as food security. In trade deals with other countries also, India has consistently avoided tariff concessions on major agricultural products. The thrust has always been on protecting millions of Indian small farmers in order to ensure food security.<a href="https://www.wionews.com/videos/trump-s-tariffs-could-disrupt-118bn-in-india-us-trade-india-braces-for-25-tariff-hit-1753958648484/embed">https://www.wionews.com/videos/trump-s-tariffs-could-disrupt-118bn-in-india-us-trade-india-braces-for-25-tariff-hit-1753958648484/embed</a>&nbsp;<h2>India has a red line on dairy sector</h2>Diary products are another 'non-negotiable red line' for India. India has refused to allow imports of US dairy products, including so-called 'non-vegetarian milk' (possibly from animals fed with certain kinds of feeds or hormones). India wants to protect its dairy farmers and make the domestic market stable. Not just the US, but India has not given duty concessions for dairy products in any of its free trade agreements.<h2>Genetically Modified (GM) Crops: A controversial territory</h2>GM crops have been a controversial topic in India for decades. India has explicitly rejected American demands to allow imports of GM crops, such as soybean and corn. It could hit Indian agriculture, and affect people's health.<h2>Non-Tariff Barriers and quality control orders</h2>Quality Control Orders are part of the ‘self-reliant India’ initiative, aimed at curbing low-quality imports and promoting domestic manufacturing. The US has raised concerns about QCOs. The other sticking point is NTFs, which block market access to several US products. India, for which both NTBs and QCOs as crucial for protecting its domestic industries, is unlikely to relax them.<h2>Energy Imports are about India's strategic autonomy</h2>In meeting its energy demands, India has been importing from countries the West sees as enemies, particularly Russia and Iran. But India is very clear that national interest will guide its energy purchases. These imports, such as petroleum from Russia, are cheaper for India. India has tied its energy trade with its strategic autonomy. This is not an area India can compromise.&nbsp;These positions align with India’s broader trade policy, which prioritises protecting domestic industries, ensuring food security, and maintaining a favourable trade balance.India, meanwhile, remains open to offering concessions in other areas. This includes cuts in tariffs on automobiles and American whiskey, or duty concessions for textiles, leather, footwear, and auto parts.

The Trump deadline of August 1 for a trade deal with India is unlikely to be met. There are some crucial sectors of Indian economy on which Prime Minister Narendra Modi's government will not compromise. Here is why

India has stood firm in its trade negotiations with the US, prioritising its national interests and protecting domestic industries. This is probably what's frustrating President Donald Trump, who announced 25 per cent tariffs and additional penalties on India, citing trade gap, high tariffs as well as non-tariff barriers, and trade in arms and energy with Russia. An Indian team has been negotiating with the US counterparts for a trade deal - reportedy to be worth nearly $118 billion - to avert the tariffs, but the Trump deadline of August 1 is unlikely to be met. There are some crucial sectors of Indian economy on which Prime Minister Narendra Modi's government will not compromise. This is both to protect domestic industries, and to prevent political fallout and possible criticism of selling out to the US. India won't rush into a trade deal with US Addressing parliament on Thursday (July 31), Trade Minister Piyush Goyal said the government "will protect the interests of our farmers, small industries and entrepreneurs." He said India will not rush into an agreement just to meet Trump's deadlines and will only accept a deal that aligns with its national interests. Protecting the Indian farmer: Agricultural sector safeguards are important for both Indian economy and politics India is keen to safeguard its farming sector, where the US has been seeking greater market access for products like maize, soybean and corn. Another issue of contention is genetically modified (GM) crops, which India has been resisting. More about it later. Allowing such imports in large amounts will hit domestic farmers as well as food security. In trade deals with other countries also, India has consistently avoided tariff concessions on major agricultural products. The thrust has always been on protecting millions of Indian small farmers in order to ensure food security. https://www.wionews.com/videos/trump-s-tariffs-could-disrupt-118bn-in-india-us-trade-india-braces-for-25-tariff-hit-1753958648484/embed India has a red line on dairy sector Diary products are another 'non-negotiable red line' for India. India has refused to allow imports of US dairy products, including so-called 'non-vegetarian milk' (possibly from animals fed with certain kinds of feeds or hormones). India wants to protect its dairy farmers and make the domestic market stable. Not just the US, but India has not given duty concessions for dairy products in any of its free trade agreements. Genetically Modified (GM) Crops: A controversial territory GM crops have been a controversial topic in India for decades. India has explicitly rejected American demands to allow imports of GM crops, such as soybean and corn. It could hit Indian agriculture, and affect people's health. Non-Tariff Barriers and quality control orders Quality Control Orders are part of the ‘self-reliant India’ initiative, aimed at curbing low-quality imports and promoting domestic manufacturing. The US has raised concerns about QCOs. The other sticking point is NTFs, which block market access to several US products. India, for which both NTBs and QCOs as crucial for protecting its domestic industries, is unlikely to relax them. Energy Imports are about India's strategic autonomy In meeting its energy demands, India has been importing from countries the West sees as enemies, particularly Russia and Iran. But India is very clear that national interest will guide its energy purchases. These imports, such as petroleum from Russia, are cheaper for India. India has tied its energy trade with its strategic autonomy. This is not an area India can compromise. These positions align with India’s broader trade policy, which prioritises protecting domestic industries, ensuring food security, and maintaining a favourable trade balance. India, meanwhile, remains open to offering concessions in other areas. This includes cuts in tariffs on automobiles and American whiskey, or duty concessions for textiles, leather, footwear, and auto parts.

The Trump deadline of August 1 for a trade deal with India is unlikely to be met. There are some crucial sectors of Indian economy on which Prime Minister Narendra Modi's government will not compromise. Here is why

Why Modi will not compromise on trade deal with Trump. These sectors are crucial for Indian economy (and politics)

European luxury car manufacturers, including Porsche and Aston Martin, are increasing US prices to offset the rising costs caused by tariffs imposed by the US government. These hikes come in the wake of a trade deal between the US and Europe, which lowered tariff rates to 15 per cent from the previous 27.5 per cent, but still remains far higher than the previous 2.5 per cent rate. This adjustment has prompted automakers to pass on the additional costs to consumers, with Porsche increasing prices by between 2.3 per cent and 3.6 per cent in July, following its full-year profit target cut and a forecasted $462 million hit from tariffs in the first half of the year.Porsche CEO Oliver Blume acknowledged the global challenges the company faces, stating, “This is not a storm that will pass,” after reporting a significant dip in its revenue and profit. The company has also ruled out establishing a US production presence to bypass tariffs, citing the ongoing global challenges impacting the automotive sector.<h2>Tariff burden weighs on Mercedes and Porsche</h2>Both Porsche and Mercedes have been hit hard by the tariff costs, leading to a significant impact on their financial performance. Mercedes-Benz, in particular, reported a 10 per cent decline in revenue to €33.15 billion ($38.82 billion) in Q2 2025, with net profit dropping nearly 70 per cent. The company also lowered its 2025 revenue outlook, citing tariff impacts, competition, and shifting consumer demand, especially in China. CFO Harald Wilhelm indicated that tariffs had already cost Mercedes hundreds of millions of euros, with the financial burden expected to intensify in the second half of the year.For Porsche, the pain is similarly acute, as the company saw a 6.7 per cent drop in first-half revenue to €18.2 billion ($21.04 billion). The company reported extraordinary expenses, including €400 million ($462.4 million) from tariff costs, resulting in a projected decrease in its return on sales to 5-7 per cent for the year, down from 14.1 per cent in 2024. Both automakers are facing compounded challenges from shifting consumer preferences, particularly in China, and slow adoption of electric vehicles (EVs) in the US.<h2>Shifting market dynamics and consumer behaviour</h2>While luxury carmakers adjust their pricing strategies to offset the tariff burden, they are also grappling with changing market dynamics. In China, where foreign automakers once dominated, local brands such as BYD and Xiaomi have been gaining traction with consumers, thanks to their tailored features and competitive pricing. This shift has impacted European automakers’ sales in the region.In the US, the adoption of electric vehicles (EVs) has been slower than expected, impacting both Porsche and Mercedes, who have invested heavily in EV models. Mercedes, for instance, is no longer accepting orders for its 2025 EVs in the US, while Porsche is dealing with high inventories of its Taycan EV, which has led to dealer discounts.Despite these challenges, both Porsche and Aston Martin have continued to raise prices in the US market, signalling that larger carmakers could follow suit in the second half of the year as they seek to mitigate the ongoing financial pressure. The higher tariff rates, while lower than initially feared, continue to have a significant impact on the luxury car market, forcing manufacturers to adjust their strategies to safeguard profitability.&nbsp;(With inputs from agencies)

Porsche and Aston Martin have continued to raise prices in the US market, signalling that larger carmakers could follow suit in the second half of the year as they seek to mitigate the ongoing financial pressure. 

European luxury car manufacturers, including Porsche and Aston Martin, are increasing US prices to offset the rising costs caused by tariffs imposed by the US government. These hikes come in the wake of a trade deal between the US and Europe, which lowered tariff rates to 15 per cent from the previous 27.5 per cent, but still remains far higher than the previous 2.5 per cent rate. This adjustment has prompted automakers to pass on the additional costs to consumers, with Porsche increasing prices by between 2.3 per cent and 3.6 per cent in July, following its full-year profit target cut and a forecasted $462 million hit from tariffs in the first half of the year. Porsche CEO Oliver Blume acknowledged the global challenges the company faces, stating, “This is not a storm that will pass,” after reporting a significant dip in its revenue and profit. The company has also ruled out establishing a US production presence to bypass tariffs, citing the ongoing global challenges impacting the automotive sector. Tariff burden weighs on Mercedes and Porsche Both Porsche and Mercedes have been hit hard by the tariff costs, leading to a significant impact on their financial performance. Mercedes-Benz, in particular, reported a 10 per cent decline in revenue to €33.15 billion ($38.82 billion) in Q2 2025, with net profit dropping nearly 70 per cent. The company also lowered its 2025 revenue outlook, citing tariff impacts, competition, and shifting consumer demand, especially in China. CFO Harald Wilhelm indicated that tariffs had already cost Mercedes hundreds of millions of euros, with the financial burden expected to intensify in the second half of the year. For Porsche, the pain is similarly acute, as the company saw a 6.7 per cent drop in first-half revenue to €18.2 billion ($21.04 billion). The company reported extraordinary expenses, including €400 million ($462.4 million) from tariff costs, resulting in a projected decrease in its return on sales to 5-7 per cent for the year, down from 14.1 per cent in 2024. Both automakers are facing compounded challenges from shifting consumer preferences, particularly in China, and slow adoption of electric vehicles (EVs) in the US. Shifting market dynamics and consumer behaviour While luxury carmakers adjust their pricing strategies to offset the tariff burden, they are also grappling with changing market dynamics. In China, where foreign automakers once dominated, local brands such as BYD and Xiaomi have been gaining traction with consumers, thanks to their tailored features and competitive pricing. This shift has impacted European automakers’ sales in the region. In the US, the adoption of electric vehicles (EVs) has been slower than expected, impacting both Porsche and Mercedes, who have invested heavily in EV models. Mercedes, for instance, is no longer accepting orders for its 2025 EVs in the US, while Porsche is dealing with high inventories of its Taycan EV, which has led to dealer discounts. Despite these challenges, both Porsche and Aston Martin have continued to raise prices in the US market, signalling that larger carmakers could follow suit in the second half of the year as they seek to mitigate the ongoing financial pressure. The higher tariff rates, while lower than initially feared, continue to have a significant impact on the luxury car market, forcing manufacturers to adjust their strategies to safeguard profitability. (With inputs from agencies)

Porsche and Aston Martin have continued to raise prices in the US market, signalling that larger carmakers could follow suit in the second half of the year as they seek to mitigate the ongoing financial pressure.&nbsp;

European luxury carmakers raise prices amid tariff strain

Global gold demand surged in the second quarter of 2025, driven by an unprecedented 78 per cent increase in investment demand, according to the World Gold Council (WGC). Total gold demand, including over-the-counter (OTC) trading, rose by 3 per cent year-on-year to 1,248.8 tonnes. In value terms, the demand spiked by 45 per cent, reaching a record $132 billion. The surge in demand was largely fuelled by rising gold prices, which hit a historic high of $3,500 per ounce in April, amid ongoing global trade tensions and geopolitical instability.Gold-backed exchange-traded funds (ETFs) played a key role in driving this growth, recording their largest semi-annual inflow since 2020. Institutional investors, particularly high-net-worth individuals (HNIs), were drawn to gold’s safe-haven status as a hedge against global uncertainty. Additionally, demand for gold bars rose by 21 per cent, highlighting the growing trend of physical gold investment.<h2>Jewellery demand drops as high prices impact consumer behaviour</h2>While overall gold demand grew, global jewellery consumption saw a significant decline. Total gold jewellery demand fell by 14 per cent to 341 tonnes in Q2, the lowest level since the pandemic-induced slump in 2020. The sharp increase in gold prices, which rose 26 per cent year-to-date, deterred many buyers, particularly in key markets like China and India. These two countries, which traditionally account for a substantial portion of global jewellery demand, saw a notable drop in consumption, with their combined market share falling below 50 per cent for only the third time in five years.In India, where gold holds strong cultural and economic importance, high local prices pushed down jewellery purchases. Gold prices in India hit a record ₹101,078 per 10 grams in June, marking a 28 per cent rise in 2025. As a result, India’s demand for gold in Q2 fell by 10 per cent, with jewellery demand dropping by 17 per cent. However, investment demand for gold in India saw a modest rise of 7 per cent, with gold ETFs becoming increasingly popular as the country becomes more digitised.<h2>Central bank demand shows signs of stabilisation&nbsp;</h2>Central banks, a significant source of global gold demand, reduced their purchases by 21 per cent to 166.5 tonnes in Q2. Despite this decline, the longer-term trend of central banks diversifying their reserves from US assets to gold remains intact. The WGC revised its forecast for central bank purchases downward but continues to expect a healthy demand outlook for the remainder of 2025.With geopolitical risks, inflationary pressures, and rising gold prices, the WGC anticipates that demand for gold ETFs will continue to grow in the second half of the year, despite a slight softening of retail investment.&nbsp;(With inputs from agencies)

 Institutional investors, particularly high-net-worth individuals, were drawn to gold’s safe-haven status as a hedge against global uncertainty. Additionally, demand for gold bars rose by 21 per cent, highlighting the growing trend of physical gold investment.

Global gold demand surged in the second quarter of 2025, driven by an unprecedented 78 per cent increase in investment demand, according to the World Gold Council (WGC). Total gold demand, including over-the-counter (OTC) trading, rose by 3 per cent year-on-year to 1,248.8 tonnes. In value terms, the demand spiked by 45 per cent, reaching a record $132 billion. The surge in demand was largely fuelled by rising gold prices, which hit a historic high of $3,500 per ounce in April, amid ongoing global trade tensions and geopolitical instability. Gold-backed exchange-traded funds (ETFs) played a key role in driving this growth, recording their largest semi-annual inflow since 2020. Institutional investors, particularly high-net-worth individuals (HNIs), were drawn to gold’s safe-haven status as a hedge against global uncertainty. Additionally, demand for gold bars rose by 21 per cent, highlighting the growing trend of physical gold investment. Jewellery demand drops as high prices impact consumer behaviour While overall gold demand grew, global jewellery consumption saw a significant decline. Total gold jewellery demand fell by 14 per cent to 341 tonnes in Q2, the lowest level since the pandemic-induced slump in 2020. The sharp increase in gold prices, which rose 26 per cent year-to-date, deterred many buyers, particularly in key markets like China and India. These two countries, which traditionally account for a substantial portion of global jewellery demand, saw a notable drop in consumption, with their combined market share falling below 50 per cent for only the third time in five years. In India, where gold holds strong cultural and economic importance, high local prices pushed down jewellery purchases. Gold prices in India hit a record ₹101,078 per 10 grams in June, marking a 28 per cent rise in 2025. As a result, India’s demand for gold in Q2 fell by 10 per cent, with jewellery demand dropping by 17 per cent. However, investment demand for gold in India saw a modest rise of 7 per cent, with gold ETFs becoming increasingly popular as the country becomes more digitised. Central bank demand shows signs of stabilisation Central banks, a significant source of global gold demand, reduced their purchases by 21 per cent to 166.5 tonnes in Q2. Despite this decline, the longer-term trend of central banks diversifying their reserves from US assets to gold remains intact. The WGC revised its forecast for central bank purchases downward but continues to expect a healthy demand outlook for the remainder of 2025. With geopolitical risks, inflationary pressures, and rising gold prices, the WGC anticipates that demand for gold ETFs will continue to grow in the second half of the year, despite a slight softening of retail investment. (With inputs from agencies)

&nbsp;Institutional investors, particularly high-net-worth individuals, were drawn to gold’s safe-haven status as a hedge against global uncertainty. Additionally, demand for gold bars rose by 21 per cent, highlighting the growing trend of physical gold investment.

Gold demand surges in Q2, driven by strong investment flows: WGC

Every 1st of the month, several changes are made and implemented with major rules. This time, along with the US tariff, several financial rules are set to come into force that will impact the pocket of the common man.

Every 1st of the month, several changes are made and implemented with major rules. This time, along with the US tariff, several financial rules are set to come into force that will impact the pocket of the common man.

From UPI to LPG: 8 major rules to change from August 1—Know which will hit your pocket the most?

The Bank of Japan (BOJ) has kept its benchmark interest rate at 0.5 per cent, maintaining its cautious stance as it assesses economic and price developments. However, the central bank significantly raised its inflation forecasts, signalling a potential interest rate hike in the near future. This decision follows a period of heightened uncertainty surrounding the global economic landscape, particularly due to US President Donald Trump's trade policies. In a quarterly report released on July 31, the BOJ revised its inflation forecast for fiscal 2025-26 to 2.7 per cent, up from 2.2 per cent previously projected.&nbsp;The central bank also raised its inflation expectations for the following two years, citing the persistent increase in food prices, particularly rice, which has driven inflationary pressures in Japan. Despite these upward revisions, the Bank of Japan refrained from making any definitive comments on when it might resume rate hikes, stressing that it is still evaluating the impact of US trade tariffs.<h2>Trade deal with the US relieves economic pressure</h2>A positive development for the BOJ came earlier this month when Japan struck a trade deal with the United States. The agreement, which reduces tariffs on Japanese imports like automobiles, has helped alleviate some of the trade-related uncertainty that had clouded the Japanese economy in recent months. The BOJ acknowledged that these developments have improved the outlook but noted that risks stemming from US trade policies remain high. “The risks surrounding US trade policy are no longer ‘extremely high,’ but still significant,” the BOJ report stated, reflecting a less pessimistic view compared to earlier this year.&nbsp;Japan’s export-driven economy is heavily dependent on smooth trade relations with the US, making the trade deal a welcome development amid other global challenges. Despite the trade agreement, the BOJ warned that household consumption in Japan would likely stagnate in the near term due to rising living costs. While the economy has shown resilience, with factory output rising 1.7 per cent in June, consumer spending remains sluggish, squeezing household budgets. The central bank indicated that it expects consumption to return to a moderate upward trend as the impact of price hikes eases.<h2>Rate hike likely by year-end</h2>Markets have responded cautiously to the BOJ’s announcement, with the yen strengthening slightly against the dollar. Investors are now speculating that the BOJ could increase rates before the year ends, especially given the revised inflation outlook and the positive developments in trade relations. Some analysts predict a rate hike could come as soon as October, while others anticipate a move in December, once the BOJ has fully assessed the effects of the US tariffs on Japan’s corporate profits and investment.BOJ Governor Kazuo Ueda has previously signalled a more gradual approach to rate hikes, but as inflationary pressures persist and the economic outlook stabilises, market expectations for a tighter monetary policy are growing. While Japan’s inflation has remained slightly below the 2 per cent target, the central bank's upgraded forecasts and more balanced risk assessment suggest that the BOJ is inching closer to resuming rate hikes in response to the evolving economic landscape.The BOJ’s cautious optimism contrasts with the gloomier outlook presented in May, when economic turmoil and trade uncertainties dominated discussions. With inflationary pressures on the rise and economic growth showing signs of stabilisation, Japan’s central bank faces increasing pressure to navigate the fine balance between supporting growth and addressing rising prices.&nbsp;(With inputs from agencies)

Bank of Japan raised its inflation expectations for the next two years, citing the persistent increase in food prices, particularly rice, which has driven inflationary pressures. Despite the revisions, the BOJ refrained from making any definitive comments on when it might resume rate hikes.

The Bank of Japan (BOJ) has kept its benchmark interest rate at 0.5 per cent, maintaining its cautious stance as it assesses economic and price developments. However, the central bank significantly raised its inflation forecasts, signalling a potential interest rate hike in the near future. This decision follows a period of heightened uncertainty surrounding the global economic landscape, particularly due to US President Donald Trump's trade policies. In a quarterly report released on July 31, the BOJ revised its inflation forecast for fiscal 2025-26 to 2.7 per cent, up from 2.2 per cent previously projected. The central bank also raised its inflation expectations for the following two years, citing the persistent increase in food prices, particularly rice, which has driven inflationary pressures in Japan. Despite these upward revisions, the Bank of Japan refrained from making any definitive comments on when it might resume rate hikes, stressing that it is still evaluating the impact of US trade tariffs. Trade deal with the US relieves economic pressure A positive development for the BOJ came earlier this month when Japan struck a trade deal with the United States. The agreement, which reduces tariffs on Japanese imports like automobiles, has helped alleviate some of the trade-related uncertainty that had clouded the Japanese economy in recent months. The BOJ acknowledged that these developments have improved the outlook but noted that risks stemming from US trade policies remain high. “The risks surrounding US trade policy are no longer ‘extremely high,’ but still significant,” the BOJ report stated, reflecting a less pessimistic view compared to earlier this year. Japan’s export-driven economy is heavily dependent on smooth trade relations with the US, making the trade deal a welcome development amid other global challenges. Despite the trade agreement, the BOJ warned that household consumption in Japan would likely stagnate in the near term due to rising living costs. While the economy has shown resilience, with factory output rising 1.7 per cent in June, consumer spending remains sluggish, squeezing household budgets. The central bank indicated that it expects consumption to return to a moderate upward trend as the impact of price hikes eases. Rate hike likely by year-end Markets have responded cautiously to the BOJ’s announcement, with the yen strengthening slightly against the dollar. Investors are now speculating that the BOJ could increase rates before the year ends, especially given the revised inflation outlook and the positive developments in trade relations. Some analysts predict a rate hike could come as soon as October, while others anticipate a move in December, once the BOJ has fully assessed the effects of the US tariffs on Japan’s corporate profits and investment. BOJ Governor Kazuo Ueda has previously signalled a more gradual approach to rate hikes, but as inflationary pressures persist and the economic outlook stabilises, market expectations for a tighter monetary policy are growing. While Japan’s inflation has remained slightly below the 2 per cent target, the central bank's upgraded forecasts and more balanced risk assessment suggest that the BOJ is inching closer to resuming rate hikes in response to the evolving economic landscape. The BOJ’s cautious optimism contrasts with the gloomier outlook presented in May, when economic turmoil and trade uncertainties dominated discussions. With inflationary pressures on the rise and economic growth showing signs of stabilisation, Japan’s central bank faces increasing pressure to navigate the fine balance between supporting growth and addressing rising prices. (With inputs from agencies)

Bank of Japan raised its inflation expectations for the next two years, citing the persistent increase in food prices, particularly rice, which has driven inflationary pressures. Despite the revisions, the BOJ refrained from making any definitive comments on when it might resume rate hikes.

Bank of Japan holds rates steady, raises inflation forecasts, signals possible rate hike

In a surprise move, on July 30, US President Donald Trump announced that the United States had reached a trade deal with Pakistan, agreeing to jointly develop the South Asian nation’s underexplored oil reserves. The deal, touted by Trump as a major step forward in bilateral relations, aims to unlock Pakistan’s “massive” oil potential, which remains largely untapped due to limited technical expertise and infrastructure challenges.&nbsp;In a post on Truth Social, Trump expressed optimism about the partnership: “We have just concluded a deal with the country of Pakistan, whereby Pakistan and the United States will work together on developing their massive oil reserves.” He added that officials were in the process of selecting the oil company that would lead the effort, hinting at a future where Pakistan might even sell oil to India. “Who knows, maybe they’ll be selling oil to India some day!” he said, a remark likely aimed at putting pressure on neighbouring India over its continued purchase of Russian energy.<h2>Oil reserves and unclear prospects</h2>Details of the agreement remain sparse, particularly regarding the size of Pakistan’s oil reserves. While Trump referred to them as “massive,” Pakistan's proven reserves are much smaller than India’s. As of 2016, Pakistan’s reserves stood at around 353 million barrels, just under 10 per cent of India’s reserves, which were estimated at 4.8 billion barrels. However, Pakistan has made recent offshore discoveries that could potentially increase its oil reserves, although the full extent remains uncertain.What is clear is that Pakistan’s energy sector faces considerable hurdles. The country has historically relied on oil imports from West Asia, and although it has identified offshore oil deposits, limited technical expertise and financial resources have hindered the development of these reserves. Pakistan has made several attempts to attract foreign investment, but these efforts have faced challenges, including geopolitical instability and security concerns, especially in its offshore areas.Even if the US helps Pakistan unlock these reserves, the oil market dynamics suggest limited impact on India’s energy needs. India remains heavily dependent on oil imports, but it is far better positioned than Pakistan to meet its own energy demands, producing significantly more crude oil per day and holding much larger proven reserves. India’s proven reserves and daily production far exceed Pakistan's, with India producing over 600,000 barrels per day in February 2025 compared to Pakistan’s 68,000.<h2>Trump's criticism of India and trade tensions</h2>The announcement of the oil deal with Pakistan coincided with President Trump’s sharp criticism of India. In a separate Truth Social post, Trump declared a 25 per cent reciprocal tariff on all Indian goods and a penalty for India’s ongoing purchases of Russian military equipment and energy. Trump accused India of being one of Russia’s largest energy customers, alongside China, and suggested that the country’s continued reliance on Russian oil amid sanctions was unacceptable.Trump’s jibe at India, which has long been a strategic partner of the US in the Indo-Pacific region, reflects growing trade tensions. His administration has been vocal about India’s tariffs on American goods and its reluctance to open its agricultural and dairy markets to American imports. Trump’s new trade measures, set to take effect from August 1, could significantly impact India’s exports to the US, particularly as the two nations had been negotiating a broader trade deal.While the US helping Pakistan develop its oil resources could have some economic benefits for the country, analysts suggest that the main motivation for the deal is geopolitical. The US is likely seeking to strengthen Pakistan’s energy sector while applying pressure on India to diversify its energy imports away from Russia and consider purchasing more oil from the United States. This could reduce India’s dependence on Russian energy and, in turn, improve the prospects for American oil exports.<h2>A new era of US-Pakistan ties?</h2>The oil deal is seen as a sign of thawing relations between the US and Pakistan, which have long been marred by tension over issues like counterterrorism and military cooperation. Just weeks ago, President Trump hosted Pakistan’s army chief, Field Marshal Asim Munir, for rare talks at the White House, signalling a shift in diplomatic ties. The two countries have also been discussing expanding cooperation in critical minerals, with Pakistan offering to boost American imports of cotton and soybeans.The deal to develop Pakistan’s oil reserves may not drastically change the regional energy landscape, but it could mark the beginning of a new chapter in US-Pakistan relations, with economic and geopolitical implications for the wider South Asian region.&nbsp;(With inputs from agencies)

The details of the US-Pakistan oil agreement remain sparse, particularly regarding the size of Pakistan’s oil reserves. While Trump referred to them as 'massive', Pakistan's proven reserves are much smaller than India’s.

In a surprise move, on July 30, US President Donald Trump announced that the United States had reached a trade deal with Pakistan, agreeing to jointly develop the South Asian nation’s underexplored oil reserves. The deal, touted by Trump as a major step forward in bilateral relations, aims to unlock Pakistan’s “massive” oil potential, which remains largely untapped due to limited technical expertise and infrastructure challenges. In a post on Truth Social, Trump expressed optimism about the partnership: “We have just concluded a deal with the country of Pakistan, whereby Pakistan and the United States will work together on developing their massive oil reserves.” He added that officials were in the process of selecting the oil company that would lead the effort, hinting at a future where Pakistan might even sell oil to India. “Who knows, maybe they’ll be selling oil to India some day!” he said, a remark likely aimed at putting pressure on neighbouring India over its continued purchase of Russian energy. Oil reserves and unclear prospects Details of the agreement remain sparse, particularly regarding the size of Pakistan’s oil reserves. While Trump referred to them as “massive,” Pakistan's proven reserves are much smaller than India’s. As of 2016, Pakistan’s reserves stood at around 353 million barrels, just under 10 per cent of India’s reserves, which were estimated at 4.8 billion barrels. However, Pakistan has made recent offshore discoveries that could potentially increase its oil reserves, although the full extent remains uncertain. What is clear is that Pakistan’s energy sector faces considerable hurdles. The country has historically relied on oil imports from West Asia, and although it has identified offshore oil deposits, limited technical expertise and financial resources have hindered the development of these reserves. Pakistan has made several attempts to attract foreign investment, but these efforts have faced challenges, including geopolitical instability and security concerns, especially in its offshore areas. Even if the US helps Pakistan unlock these reserves, the oil market dynamics suggest limited impact on India’s energy needs. India remains heavily dependent on oil imports, but it is far better positioned than Pakistan to meet its own energy demands, producing significantly more crude oil per day and holding much larger proven reserves. India’s proven reserves and daily production far exceed Pakistan's, with India producing over 600,000 barrels per day in February 2025 compared to Pakistan’s 68,000. Trump's criticism of India and trade tensions The announcement of the oil deal with Pakistan coincided with President Trump’s sharp criticism of India. In a separate Truth Social post, Trump declared a 25 per cent reciprocal tariff on all Indian goods and a penalty for India’s ongoing purchases of Russian military equipment and energy. Trump accused India of being one of Russia’s largest energy customers, alongside China, and suggested that the country’s continued reliance on Russian oil amid sanctions was unacceptable. Trump’s jibe at India, which has long been a strategic partner of the US in the Indo-Pacific region, reflects growing trade tensions. His administration has been vocal about India’s tariffs on American goods and its reluctance to open its agricultural and dairy markets to American imports. Trump’s new trade measures, set to take effect from August 1, could significantly impact India’s exports to the US, particularly as the two nations had been negotiating a broader trade deal. While the US helping Pakistan develop its oil resources could have some economic benefits for the country, analysts suggest that the main motivation for the deal is geopolitical. The US is likely seeking to strengthen Pakistan’s energy sector while applying pressure on India to diversify its energy imports away from Russia and consider purchasing more oil from the United States. This could reduce India’s dependence on Russian energy and, in turn, improve the prospects for American oil exports. A new era of US-Pakistan ties? The oil deal is seen as a sign of thawing relations between the US and Pakistan, which have long been marred by tension over issues like counterterrorism and military cooperation. Just weeks ago, President Trump hosted Pakistan’s army chief, Field Marshal Asim Munir, for rare talks at the White House, signalling a shift in diplomatic ties. The two countries have also been discussing expanding cooperation in critical minerals, with Pakistan offering to boost American imports of cotton and soybeans. The deal to develop Pakistan’s oil reserves may not drastically change the regional energy landscape, but it could mark the beginning of a new chapter in US-Pakistan relations, with economic and geopolitical implications for the wider South Asian region. (With inputs from agencies)

The details of the US-Pakistan oil agreement remain sparse, particularly regarding the size of Pakistan’s oil reserves. While Trump referred to them as 'massive', Pakistan's proven reserves are much smaller than India’s.

Oil deal with Pakistan signals shift in US strategy amid tensions with India