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The US dollar has posted its worst first-half performance in more than 50 years, hit by President Donald Trump’s aggressive tariff policies, investor fears over rising national debt, and bets on Federal Reserve rate cuts. According to Bloomberg and The Guardian, the US Dollar Index fell 10.8 per cent in the first six months of 2025, a slump unmatched since 1973.<h2>Dollar index dives amid policy uncertainty</h2>The US Dollar Index, which measures the greenback against a basket of major currencies, has dropped to its lowest level since March 2022. The scale of this year’s decline rivals the 14.8 per cent plunge in the first half of 1973 during Richard Nixon’s presidency. According to Bloomberg, traders have been spooked by Trump’s surprise “Liberation Day” tariff hikes in April. The policy, aimed at extracting concessions from China, Mexico and Canada, triggered a sharp sell-off in dollar assets and prompted fears of a global trade war.&nbsp;Although the White House paused some tariffs for 90 days under pressure from investors, uncertainty remains high. Analysts say the repeated tariff threats have undermined confidence in the dollar as a safe-haven currency, while worries about the US fiscal outlook are adding to the strain.&nbsp;Here’s a snapshot illustrating how severe the 2025 slump has been in historical context:

<figure class="table"><table><tbody><tr><td>Year</td><td>First-Half Dollar Index Change (%)</td></tr><tr><td>1973</td><td>-14.8</td></tr><tr><td>2025</td><td>-10.8</td></tr><tr><td>Typical Range (Recent Decades)</td><td>-1 to +5</td></tr></tbody></table></figure>Source: Guardian graphic, data from LSEG

This graphic highlight that outside of crisis years like 1973, the dollar typically moves within a far narrower band in the first half of the year. The 2025 slump is one of the largest moves in over five decades, underlining just how severely investor sentiment has been shaken.<h2>Rate-cut expectations deepen dollar weakness</h2>As reported by Bloomberg, traders are increasingly convinced that the Federal Reserve will have to cut interest rates to counter weaker growth. President Trump has repeatedly attacked the Fed for not cutting fast enough and has suggested he might replace Chair Jerome Powell with someone more dovish.&nbsp;Markets are pricing in multiple rate reductions over the coming year. Lower rates reduce the yield on dollar-denominated assets, making the currency less attractive to global investors.<h2>Investors rotate away from US assets</h2>According to The Guardian, the dollar’s decline has been matched by strength in rival currencies. Sterling has risen to a three-year high of $1.37, while the euro is up around 5 per cent so far this year.This reflects a broader rotation out of US assets amid worries about the country’s ballooning debt and unpredictable trade policy. Trump’s expansive budget plans, described as the “big beautiful” budget, are expected to push borrowing even higher, fuelling further doubts about the dollar’s long-term stability.<h2>US stock markets rebound despite tariff shock</h2>Despite the dollar’s slump and an early-year sell-off, US equity markets have bounced back. The April tariff announcement led to the sharpest equity correction since the pandemic, with the S&amp;P 500 tumbling more than 10 per cent in just two days.&nbsp;Bloomberg reports that this volatility was quickly reversed once tariffs were paused and strong earnings, particularly from AI-focused firms, supported sentiment. By the end of June, the S&amp;P 500 had regained ground to post a 5 per cent gain for the year, though it still lagged key European indices.<h2>Europe and UK outperform</h2>As detailed in The Guardian, European markets have outpaced Wall Street. The pan-European Stoxx 600 index rose 7 per cent in the first half of 2025, the UK’s FTSE 100 gained 7.2 per cent, and Germany’s Dax surged 20 per cent, making Europe one of the best-performing regions globally.&nbsp;Investment analysts note that tariffs, earnings downgrades, geopolitical conflicts, and fears over US debt have prompted a shift in investor preferences, reducing America’s dominance in global portfolios.<h2>Winners and losers among sectors</h2>Technology stocks have seen diverging fortunes. Meta Platforms, Facebook’s owner, has soared 25 per cent on AI optimism, while Apple has lost nearly 20 per cent amid concerns about tariffs on Chinese imports and fears it has fallen behind in the AI race.&nbsp;Meanwhile, safe-haven assets have benefited. Gold prices have jumped 25 per cent in 2025 so far, as investors seek protection against market volatility and policy uncertainty.<h2>The road ahead for the dollar</h2>With Trump’s tariff threats still hanging over trade partners, ongoing geopolitical tensions, and questions about the Federal Reserve’s path, analysts warn that the greenback could face further turbulence in the second half of 2025.&nbsp;While US stocks have shown resilience, the dollar’s worst first-half slump in over 50 years underscores the deep anxiety about America’s economic direction and its traditional role as the world’s reserve currency. &nbsp;(With inputs from the agencies) &nbsp;

With a 10.8% plunge in H1 2025, the US Dollar Index faces its worst start in over 50 years, driven by tariff tensions, fiscal instability, and fading investor confidence in America economic policy direction.

The US dollar has posted its worst first-half performance in more than 50 years, hit by President Donald Trump’s aggressive tariff policies, investor fears over rising national debt, and bets on Federal Reserve rate cuts. According to Bloomberg and The Guardian, the US Dollar Index fell 10.8 per cent in the first six months of 2025, a slump unmatched since 1973. Dollar index dives amid policy uncertainty The US Dollar Index, which measures the greenback against a basket of major currencies, has dropped to its lowest level since March 2022. The scale of this year’s decline rivals the 14.8 per cent plunge in the first half of 1973 during Richard Nixon’s presidency. According to Bloomberg, traders have been spooked by Trump’s surprise “Liberation Day” tariff hikes in April. The policy, aimed at extracting concessions from China, Mexico and Canada, triggered a sharp sell-off in dollar assets and prompted fears of a global trade war. Although the White House paused some tariffs for 90 days under pressure from investors, uncertainty remains high. Analysts say the repeated tariff threats have undermined confidence in the dollar as a safe-haven currency, while worries about the US fiscal outlook are adding to the strain. Here’s a snapshot illustrating how severe the 2025 slump has been in historical context:

The US dollar has suffered its steepest first-half drop since 1973, shaken by Trump’s tariff shocks, debt concerns, and expectations of Fed rate cuts.

Dollar slumps to 50-year low as Trump’s tariffs, Fed rift rattle markets

Asia’s once-resilient manufacturing sector is showing signs of sustained fatigue as June PMI (Purchasing Managers’ Index) data from across the region point to a deepening contraction in factory activity, with China standing out as a rare exception. Amid persistent global trade tensions, especially around US tariffs under President Donald Trump, many export-reliant economies, including Taiwan, Vietnam, South Korea, and Indonesia, are reporting falling orders, reduced output, and job cuts. China’s manufacturing sector, meanwhile, managed to return to growth in June, with its PMI rising to 50.4, breaching the critical 50 threshold that separates expansion from contraction. This contrasts with the rest of Asia, where both domestic and foreign demand have remained subdued and prospects remain clouded by tariff uncertainties and declining global consumption.<h2>Widespread contraction across Asia</h2>The S&amp;P Global PMI readings across much of the continent paint a grim picture. Taiwan’s manufacturing PMI fell to 47.2 in June from 48.6 in May, marking the steepest contraction in 18 months. The slump was driven by sharp declines in both new business and export orders, with manufacturers citing “reduced customer demand at home and overseas amid tariff concerns”, according to Annabel Fiddes of S&amp;P Global Market Intelligence.Vietnam’s PMI fell to 48.9, dragged down by what businesses described as a tariff-induced collapse in export orders, particularly to the US. Staffing, purchasing, and inventories all saw corresponding cuts, although production showed marginal growth. The country’s manufacturers noted that US tariffs had been a major factor behind the decline in foreign business.Elsewhere in Southeast Asia, the picture was similarly bleak. Indonesia posted the region’s worst reading at 46.9, down from 47.4 in May. The country saw its sharpest fall in new orders since August 2021, triggering contractions in output and employment. Malaysia and the wider ASEAN bloc also remained mired in contraction, with ASEAN’s overall PMI dipping to 48.6, its lowest level since August 2021, amid worsening foreign demand and production cuts.South Korea, a key manufacturing hub, reported a PMI of 48.7 in June, an improvement from 47.7 in May, but still indicative of contraction for the fourth straight month. Manufacturers reported a fourth consecutive drop in production and a third in export orders, with global clients showing increasing hesitancy as tariff uncertainty looms. Despite a slight recovery in domestic sentiment, the employment index turned negative again, highlighting fragile conditions on the ground.Japan managed a symbolic return to growth with its PMI rising to 50.1 in June—the first reading above 50 since May 2024—helped by a slight increase in production. But the country remains exposed to escalating US tariffs, with President Trump threatening new levies on Japanese imports. Business optimism improved, but underlying demand remained weak, and both new orders and exports continued to decline.Even traditionally resilient economies such as the Philippines and Thailand are feeling the strain. The Philippines PMI rose modestly to 50.7, but supply chain constraints and labour shortages hampered growth. Thailand, by contrast, posted stronger numbers, its PMI rose to 51.7, the best since August 2024, thanks to better export orders and strong promotional activity. However, manufacturers there remained cautious amid easing optimism.<h2>China: A fragile recovery</h2>Amid the widespread gloom, China has emerged as the only major Asian economy to register an expansion in manufacturing activity. Its June PMI rose to 50.4 from 48.3 in May, driven by a rebound in new domestic orders and production. Though the increase was marginal, it marked the fastest pace of output growth since November 2024. Firms credited promotional activities and better trade conditions for the rebound.Still, the recovery is far from robust. Export orders declined for a third consecutive month, although the pace of decline eased. Manufacturers continued to cut jobs in response to cost pressures and uncertainty about the global trade outlook. Business confidence, while still positive, weakened and remains below the long-run average.Chinese firms also faced deteriorating supply chain conditions and were cautious about input purchases. Despite these headwinds, cost savings from lower raw material prices allowed manufacturers to reduce output charges, helping maintain competitiveness.<h2>Tariff deadlines loom large</h2>The regional downturn comes as the three-month grace period on Trump’s reciprocal tariffs is set to expire on July 9. Washington is expected to announce further tariff actions shortly after the US July 4 holiday, including sweeping 24 per cent duties on Japanese imports unless a last-minute agreement is reached. The ongoing brinkmanship has left businesses wary of investing or hiring, further straining supply chains and undermining fragile recoveries.Economists warn that the region’s deflationary pressures, intensified by cheap Chinese exports and reduced global consumption, may worsen if geopolitical tensions remain unresolved. Despite China’s positive headline reading, the outlook for the broader region remains troubled. Unless global demand picks up and tariff risks recede, Asia’s role as the world’s factory floor may be in for a prolonged period of restructuring and stagnation.

In Asia, both domestic and foreign demand, have remained subdued and prospects remain clouded by tariff uncertainties and declining global consumption.

Asia’s once-resilient manufacturing sector is showing signs of sustained fatigue as June PMI (Purchasing Managers’ Index) data from across the region point to a deepening contraction in factory activity, with China standing out as a rare exception. Amid persistent global trade tensions, especially around US tariffs under President Donald Trump, many export-reliant economies, including Taiwan, Vietnam, South Korea, and Indonesia, are reporting falling orders, reduced output, and job cuts. China’s manufacturing sector, meanwhile, managed to return to growth in June, with its PMI rising to 50.4, breaching the critical 50 threshold that separates expansion from contraction. This contrasts with the rest of Asia, where both domestic and foreign demand have remained subdued and prospects remain clouded by tariff uncertainties and declining global consumption. Widespread contraction across Asia The S&P Global PMI readings across much of the continent paint a grim picture. Taiwan’s manufacturing PMI fell to 47.2 in June from 48.6 in May, marking the steepest contraction in 18 months. The slump was driven by sharp declines in both new business and export orders, with manufacturers citing “reduced customer demand at home and overseas amid tariff concerns”, according to Annabel Fiddes of S&P Global Market Intelligence. Vietnam’s PMI fell to 48.9, dragged down by what businesses described as a tariff-induced collapse in export orders, particularly to the US. Staffing, purchasing, and inventories all saw corresponding cuts, although production showed marginal growth. The country’s manufacturers noted that US tariffs had been a major factor behind the decline in foreign business. Elsewhere in Southeast Asia, the picture was similarly bleak. Indonesia posted the region’s worst reading at 46.9, down from 47.4 in May. The country saw its sharpest fall in new orders since August 2021, triggering contractions in output and employment. Malaysia and the wider ASEAN bloc also remained mired in contraction, with ASEAN’s overall PMI dipping to 48.6, its lowest level since August 2021, amid worsening foreign demand and production cuts. South Korea, a key manufacturing hub, reported a PMI of 48.7 in June, an improvement from 47.7 in May, but still indicative of contraction for the fourth straight month. Manufacturers reported a fourth consecutive drop in production and a third in export orders, with global clients showing increasing hesitancy as tariff uncertainty looms. Despite a slight recovery in domestic sentiment, the employment index turned negative again, highlighting fragile conditions on the ground. Japan managed a symbolic return to growth with its PMI rising to 50.1 in June—the first reading above 50 since May 2024—helped by a slight increase in production. But the country remains exposed to escalating US tariffs, with President Trump threatening new levies on Japanese imports. Business optimism improved, but underlying demand remained weak, and both new orders and exports continued to decline. Even traditionally resilient economies such as the Philippines and Thailand are feeling the strain. The Philippines PMI rose modestly to 50.7, but supply chain constraints and labour shortages hampered growth. Thailand, by contrast, posted stronger numbers, its PMI rose to 51.7, the best since August 2024, thanks to better export orders and strong promotional activity. However, manufacturers there remained cautious amid easing optimism. China: A fragile recovery Amid the widespread gloom, China has emerged as the only major Asian economy to register an expansion in manufacturing activity. Its June PMI rose to 50.4 from 48.3 in May, driven by a rebound in new domestic orders and production. Though the increase was marginal, it marked the fastest pace of output growth since November 2024. Firms credited promotional activities and better trade conditions for the rebound. Still, the recovery is far from robust. Export orders declined for a third consecutive month, although the pace of decline eased. Manufacturers continued to cut jobs in response to cost pressures and uncertainty about the global trade outlook. Business confidence, while still positive, weakened and remains below the long-run average. Chinese firms also faced deteriorating supply chain conditions and were cautious about input purchases. Despite these headwinds, cost savings from lower raw material prices allowed manufacturers to reduce output charges, helping maintain competitiveness. Tariff deadlines loom large The regional downturn comes as the three-month grace period on Trump’s reciprocal tariffs is set to expire on July 9. Washington is expected to announce further tariff actions shortly after the US July 4 holiday, including sweeping 24 per cent duties on Japanese imports unless a last-minute agreement is reached. The ongoing brinkmanship has left businesses wary of investing or hiring, further straining supply chains and undermining fragile recoveries. Economists warn that the region’s deflationary pressures, intensified by cheap Chinese exports and reduced global consumption, may worsen if geopolitical tensions remain unresolved. Despite China’s positive headline reading, the outlook for the broader region remains troubled. Unless global demand picks up and tariff risks recede, Asia’s role as the world’s factory floor may be in for a prolonged period of restructuring and stagnation.

In Asia, both domestic and foreign demand, have remained subdued and prospects remain clouded by tariff uncertainties and declining global consumption.

Asia’s manufacturing engines stall amid trade uncertainty; China emerges as lone bright spot

US President Donald Trump has turned up the heat on trade talks with Japan, threatening sharply higher tariffs unless Tokyo makes new concessions on American exports. His remarks come as a crucial July 9 deadline approaches, raising fears of an escalation that could impact everything from rice to cars.<h2>Trump complains about Japan’s rice imports</h2>In a social media post on Monday, Trump criticised Japan’s reluctance to import American-grown rice despite what he called a “massive rice shortage” in the country. Writing on his Truth Social platform, he accused trading partners of becoming “spoiled” when dealing with the United States.&nbsp;“I have great respect for Japan, they won’t take our RICE, and yet they have a massive rice shortage,” Trump said. He also indicated his administration would soon be sending formal notices to partners about the planned tariff increases, as per Reuters. This latest outburst follows his Sunday comments, in which he accused Japan of “unfair” trade practices in the automobile sector. Such remarks have become a hallmark of Trump’s second-term trade strategy, marked by tough rhetoric and an emphasis on what he calls fairer terms for American producers.<h2>July 9 deadline looms for tariff hike</h2>Trump’s administration had earlier imposed a temporary 10 per cent tariff rate on a broad range of imports. But those rates are set to snap back to much higher levels, between 11 and 50 per cent on 9 July if no new deals are finalised. Treasury Secretary Scott Bessent told Bloomberg Television that the White House would notify countries of these higher rates if negotiations stalled. He acknowledged that some countries were bargaining in good faith but insisted the threat of tariffs was needed to maintain pressure.&nbsp;“We have countries that are negotiating in good faith, but they should be aware that if we can’t get across the line because they are being recalcitrant, then we could spring back to the April 2 levels. I hope that won’t have to happen,” Bessent said, as quoted by Reuters. Despite the tough talk, Bessent has hinted at flexibility. Earlier this month he floated the idea of extending the deadline for countries actively negotiating with Washington, although he emphasised only Trump would make that call.<h2>Japan warns of impact on its auto industry</h2>Japan’s main trade negotiator, Ryosei Akazawa, signalled on Monday that Tokyo was committed to continuing discussions with Washington while protecting its own interests. He specifically warned that the resumption of Trump’s 25 per cent tariff on Japanese autos would deal a serious blow to Japan’s economy.&nbsp;“We will continue working with the US to reach a trade agreement while defending Japan’s national interest,” Akazawa said, as per Reuters. Autos remain one of the most sensitive sectors in US-Japan trade, with past negotiations frequently bogging down over market access and tariff rates.<h2>EU eyes deal to avoid steep tariffs</h2>While Japan faces tough demands, another major US trading partner, the European Union, is also trying to navigate the looming tariff threat. According to Bloomberg News, the EU is willing to accept a 10 per cent baseline tariff on its exports to the US in exchange for American commitments to lower tariffs in key industries such as pharmaceuticals, alcohol, semiconductors, and commercial aircraft.&nbsp;Reuters reported that European officials are increasingly resigned to this 10 per cent level as the baseline for any reciprocal deal. The UK previously agreed to similar terms, securing tariff stability on autos while gaining special access for aircraft engines and beef.<h2>A familiar hardline Trump strategy</h2>Trump’s latest trade offensive echoes his first-term approach: using the threat of tariffs to force concessions from allies and rivals alike. While his administration says it is simply fighting for American workers and producers, critics warn the strategy risks destabilising trade flows and hurting key industries on both sides.&nbsp;As the 9 July deadline approaches, trading partners will be under pressure to strike last-minute deals. The outcome will likely define the next phase of America’s complex trade relationships and could have significant implications for global supply chains, prices, and diplomatic ties.&nbsp;(With inputs from the agencies) &nbsp;

As Trump threatens steep tariff hikes on Japan and the EU, global trade tensions rise; key sectors like autos and agriculture hang in the balance with major deals at stake before the looming July 9 cutoff.

US President Donald Trump has turned up the heat on trade talks with Japan, threatening sharply higher tariffs unless Tokyo makes new concessions on American exports. His remarks come as a crucial July 9 deadline approaches, raising fears of an escalation that could impact everything from rice to cars. Trump complains about Japan’s rice imports In a social media post on Monday, Trump criticised Japan’s reluctance to import American-grown rice despite what he called a “massive rice shortage” in the country. Writing on his Truth Social platform, he accused trading partners of becoming “spoiled” when dealing with the United States. “I have great respect for Japan, they won’t take our RICE, and yet they have a massive rice shortage,” Trump said. He also indicated his administration would soon be sending formal notices to partners about the planned tariff increases, as per Reuters. This latest outburst follows his Sunday comments, in which he accused Japan of “unfair” trade practices in the automobile sector. Such remarks have become a hallmark of Trump’s second-term trade strategy, marked by tough rhetoric and an emphasis on what he calls fairer terms for American producers. July 9 deadline looms for tariff hike Trump’s administration had earlier imposed a temporary 10 per cent tariff rate on a broad range of imports. But those rates are set to snap back to much higher levels, between 11 and 50 per cent on 9 July if no new deals are finalised. Treasury Secretary Scott Bessent told Bloomberg Television that the White House would notify countries of these higher rates if negotiations stalled. He acknowledged that some countries were bargaining in good faith but insisted the threat of tariffs was needed to maintain pressure. “We have countries that are negotiating in good faith, but they should be aware that if we can’t get across the line because they are being recalcitrant, then we could spring back to the April 2 levels. I hope that won’t have to happen,” Bessent said, as quoted by Reuters. Despite the tough talk, Bessent has hinted at flexibility. Earlier this month he floated the idea of extending the deadline for countries actively negotiating with Washington, although he emphasised only Trump would make that call. Japan warns of impact on its auto industry Japan’s main trade negotiator, Ryosei Akazawa, signalled on Monday that Tokyo was committed to continuing discussions with Washington while protecting its own interests. He specifically warned that the resumption of Trump’s 25 per cent tariff on Japanese autos would deal a serious blow to Japan’s economy. “We will continue working with the US to reach a trade agreement while defending Japan’s national interest,” Akazawa said, as per Reuters. Autos remain one of the most sensitive sectors in US-Japan trade, with past negotiations frequently bogging down over market access and tariff rates. EU eyes deal to avoid steep tariffs While Japan faces tough demands, another major US trading partner, the European Union, is also trying to navigate the looming tariff threat. According to Bloomberg News, the EU is willing to accept a 10 per cent baseline tariff on its exports to the US in exchange for American commitments to lower tariffs in key industries such as pharmaceuticals, alcohol, semiconductors, and commercial aircraft. Reuters reported that European officials are increasingly resigned to this 10 per cent level as the baseline for any reciprocal deal. The UK previously agreed to similar terms, securing tariff stability on autos while gaining special access for aircraft engines and beef. A familiar hardline Trump strategy Trump’s latest trade offensive echoes his first-term approach: using the threat of tariffs to force concessions from allies and rivals alike. While his administration says it is simply fighting for American workers and producers, critics warn the strategy risks destabilising trade flows and hurting key industries on both sides. As the 9 July deadline approaches, trading partners will be under pressure to strike last-minute deals. The outcome will likely define the next phase of America’s complex trade relationships and could have significant implications for global supply chains, prices, and diplomatic ties. (With inputs from the agencies)

Trump escalates trade pressure on Japan with tariff threats over rice and cars ahead of a critical July 9 deadline, signaling a return to hardline trade tactics.

Trump threatens higher tariffs as US-Japan trade row deepens

From 1 July, a raft of new financial rules has come into force across India, reshaping everyday transactions for millions. Major banks are hiking ATM fees, Aadhaar is now mandatory for new PAN card applications, and the deadline for income tax return filing has been extended. Here is how these changes will affect you.<h2>ATM withdrawals get costlier across all major banks</h2>Customers of nearly every major bank will pay more for withdrawing cash this month. Following the RBI’s rules capping post-free ATM withdrawal fees at ₹23, banks have aligned their charges, but the number of free transactions and the exact fees after that limit vary.&nbsp;State Bank of India (SBI) will charge ₹15 plus GST for every cash withdrawal at its own ATMs once the free limit is exhausted, and ₹21 plus GST at other banks’ ATMs. ICICI Bank customers get five free cash withdrawals per month at ICICI ATMs, after which each withdrawal will cost ₹23. For non-ICICI ATMs, metro city customers get three free transactions and non-metro users five; exceeding these limits will cost ₹23 per withdrawal and ₹8.5 for balance enquiries.&nbsp;HDFC Bank has standardised its post-limit charge to ₹23 for all ATM withdrawals, whether on its own network or other banks’ machines. Axis Bank has raised its fee to ₹23 per transaction beyond the free monthly limit for all eligible account types, including savings, NRI, trust and Priority customers.Kotak Mahindra Bank now charges ₹23 for each extra cash transaction beyond the free quota, while non-financial transactions cost ₹10. Yes Bank follows a similar model, with ₹23 per cash withdrawal and ₹10 for non-financial actions once free limits are used up. Punjab National Bank (PNB) is charging ₹23 for extra withdrawals and ₹11 for balance checks beyond the free limit.&nbsp;Banks are advising customers to plan their cash needs more carefully, use their own bank’s ATM network wherever possible, and embrace digital payments to avoid these rising costs.

<figure class="table"><table><tbody><tr><td colspan="4">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;ATM Withdrawal Fees Across Major Banks (Post-Free Limit)</td></tr><tr><td>Bank</td><td>Own ATM Fee</td><td>Other Bank ATM Fee</td><td>Non-Financial Transaction Fee</td></tr><tr><td>SBI</td><td>₹15 + GST</td><td>₹21 + GST</td><td>&nbsp; &nbsp; &nbsp;Typically free (subject to policy)</td></tr><tr><td>ICICI Bank</td><td>₹23</td><td>₹23</td><td>₹8.5 at non-ICICI ATMs</td></tr><tr><td>HDFC Bank</td><td>₹23</td><td>₹23</td><td>Typically free</td></tr><tr><td>Axis Bank</td><td>₹23</td><td>₹23</td><td>Typically free</td></tr><tr><td>Kotak Mahindra Bank</td><td>₹23</td><td>₹23</td><td>₹10</td></tr><tr><td>Yes Bank</td><td>₹23</td><td>₹23</td><td>₹10</td></tr><tr><td>Punjab National Bank</td><td>₹23</td><td>₹23</td><td>₹11</td></tr></tbody></table></figure>Note: Free transaction limits vary (usually 3–5 per month depending on account type and location). GST is applied extra on all applicable fees.

<h2>Aadhaar now compulsory for new PAN applications</h2>From today, Aadhaar verification has become mandatory for anyone applying for a new PAN card. Until now, applicants could use other government-issued IDs such as a driving licence or birth certificate. The Central Board of Direct Taxes (CBDT) says this change is aimed at eliminating duplicate or fraudulent PAN cards and ensuring stricter identity verification.&nbsp;Existing PAN holders have until 31 December this year to link their Aadhaar. Failure to do so may result in the PAN being deactivated, which could disrupt access to banking, tax filing, and other services.<h2>ITR filing deadline extended</h2>In a relief for taxpayers, the government has extended the deadline for filing income tax returns for salaried individuals. Instead of 31 July, taxpayers now have until 15 September to complete their filings. This 46-day extension aims to reduce last-minute rush and ease the load on the income tax e-filing portal, which often suffers from slowdowns and errors near deadline days.&nbsp;Officials have still advised early filing to ensure faster processing of refunds and fewer technical issues.<h2>Credit card fees and features see major revisions</h2>Credit card users will also see new terms and charges this month. SBI is discontinuing its air accident insurance benefit, which was previously available on premium cards such as SBI Elite and Miles variants when used to buy air tickets. The bank is also revising the way it calculates the minimum amount due on monthly bills.&nbsp;HDFC Bank is imposing a one per cent fee, capped at ₹4,999 per transaction, on rent payments, wallet loading over ₹10,000 in a single transaction, and spending more than ₹10,000 on online skill-based games. Utility bill payments over ₹50,000 a month using HDFC cards will also attract this fee, with insurance payments exempt.&nbsp;ICICI Bank is revising its IMPS charges for online transfers, which will now range from ₹2.5 to ₹15 depending on the amount. The bank is also limiting free cash deposits at branches and cash recycler machines to three per month; extra deposits will cost ₹150 each. Cash deposits over ₹1 lakh a month will attract a fee of ₹150 or ₹3.50 per ₹1,000, whichever is higher.&nbsp;Kotak Mahindra Bank is introducing broader changes, including fees on wallet loading, standing instructions and utility bill payments, along with a revised calculation for minimum amounts due.<h2>A changing landscape for customers</h2>These sweeping changes mark a significant shift in the cost of everyday banking and payments in India. Customers are being urged to stay informed, plan cash withdrawals to avoid new ATM fees, ensure Aadhaar-PAN linking well before the deadline, and carefully review credit card terms to avoid surprise charges.&nbsp;As banks and regulators push for greater digital adoption and financial discipline, the cost of convenience is rising and staying alert is the best way to keep your finances in check.&nbsp;(With inputs from the agencies)&nbsp;

Aadhaar is now mandatory for new PAN applications, while major changes in tax deadlines and banking charges signal a shift in India financial compliance and consumer costs.

From 1 July, a raft of new financial rules has come into force across India, reshaping everyday transactions for millions. Major banks are hiking ATM fees, Aadhaar is now mandatory for new PAN card applications, and the deadline for income tax return filing has been extended. Here is how these changes will affect you. ATM withdrawals get costlier across all major banks Customers of nearly every major bank will pay more for withdrawing cash this month. Following the RBI’s rules capping post-free ATM withdrawal fees at ₹23, banks have aligned their charges, but the number of free transactions and the exact fees after that limit vary. State Bank of India (SBI) will charge ₹15 plus GST for every cash withdrawal at its own ATMs once the free limit is exhausted, and ₹21 plus GST at other banks’ ATMs. ICICI Bank customers get five free cash withdrawals per month at ICICI ATMs, after which each withdrawal will cost ₹23. For non-ICICI ATMs, metro city customers get three free transactions and non-metro users five; exceeding these limits will cost ₹23 per withdrawal and ₹8.5 for balance enquiries. HDFC Bank has standardised its post-limit charge to ₹23 for all ATM withdrawals, whether on its own network or other banks’ machines. Axis Bank has raised its fee to ₹23 per transaction beyond the free monthly limit for all eligible account types, including savings, NRI, trust and Priority customers. Kotak Mahindra Bank now charges ₹23 for each extra cash transaction beyond the free quota, while non-financial transactions cost ₹10. Yes Bank follows a similar model, with ₹23 per cash withdrawal and ₹10 for non-financial actions once free limits are used up. Punjab National Bank (PNB) is charging ₹23 for extra withdrawals and ₹11 for balance checks beyond the free limit. Banks are advising customers to plan their cash needs more carefully, use their own bank’s ATM network wherever possible, and embrace digital payments to avoid these rising costs.

From stricter Aadhaar-PAN rules to revised credit card and ATM fees, here's how recent policy shifts impact tax filing, digital payments, and personal finance management in India.

From ATM fees to PAN card rules, here’s what changes from July 1

In a bold legislative move, Texas has passed a landmark law recognising gold and silver as legal tender for everyday transactions, with the law slated to take effect on May 1, 2027. Signed by Governor Greg Abbott in June 2025, the law authorises Texans to conduct financial transactions using gold and silver coins or other designated forms, positioning the state at the forefront of monetary innovation in the United States.&nbsp;This development reflects a growing appetite for financial sovereignty and alternatives to fiat currency, especially in a climate of rising interest in inflation-resistant assets and decentralised finance. The initiative is grounded in Article 1, Section 10 of the US Constitution, which permits states to make gold and silver legal tender, something rarely exercised in modern times.<h2>A push toward monetary sovereignty and diversification</h2>At the heart of the new legislation is a desire to give residents more control over their financial future. The law mandates the Texas Comptroller to develop infrastructure for enabling transactions in precious metals, including electronic systems. This opens the door to a dual-currency system, where gold and silver can coexist alongside the US dollar for retail purchases, contractual obligations, and other payments.&nbsp;Supporters of the law argue that gold and silver offer a more stable and tangible store of value than paper currency, especially amid concerns of inflation and monetary debasement. By making these metals legal tender, Texas aims to provide an inflation hedge and diversify the monetary system. Critics, however, caution that integrating physical assets into mainstream commerce could introduce logistical and regulatory complications, such as verifying metal authenticity and securing storage and transport.<h2>Fintech innovation and crypto implications</h2>The legal tender designation is also expected to catalyse innovation in Texas’s fintech sector. Startups may begin developing digital platforms that facilitate gold- or silver-backed transactions, possibly creating tokenised representations of these metals for easier use in digital commerce. This hybrid approach could blur the lines between traditional finance and emerging digital asset ecosystems.&nbsp;Interestingly, the move may create new competition for cryptocurrencies like Bitcoin and Ethereum. Unlike crypto, gold and silver have a constitutional and historical foundation as currency, which may make them more appealing to conservative investors and those sceptical of decentralised digital currencies. While this doesn’t necessarily diminish crypto’s relevance, it introduces a parallel system that could attract users seeking stability and legal clarity.<h2>A national trend in the making?</h2>Texas’s bold step may not be an isolated one. Over a dozen US states are reportedly exploring similar legislation, and Texas’s law could serve as a model for operationalising precious metals in daily commerce. If adopted elsewhere, it could spark a nationwide rethink of monetary systems, with implications for central banking, digital currency regulation, and economic policy.&nbsp;As the 2027 implementation date approaches, the financial world will be watching closely to see how Texas navigates this transition. Whether this ushers in a new era of state-level monetary autonomy or remains a symbolic gesture, one thing is clear: the conversation about the future of money in America has fundamentally shifted.

The development reflects a growing appetite for financial sovereignty and alternatives to fiat currency, especially in a climate of rising interest in inflation-resistant assets and decentralised finance.

In a bold legislative move, Texas has passed a landmark law recognising gold and silver as legal tender for everyday transactions, with the law slated to take effect on May 1, 2027. Signed by Governor Greg Abbott in June 2025, the law authorises Texans to conduct financial transactions using gold and silver coins or other designated forms, positioning the state at the forefront of monetary innovation in the United States. This development reflects a growing appetite for financial sovereignty and alternatives to fiat currency, especially in a climate of rising interest in inflation-resistant assets and decentralised finance. The initiative is grounded in Article 1, Section 10 of the US Constitution, which permits states to make gold and silver legal tender, something rarely exercised in modern times. A push toward monetary sovereignty and diversification At the heart of the new legislation is a desire to give residents more control over their financial future. The law mandates the Texas Comptroller to develop infrastructure for enabling transactions in precious metals, including electronic systems. This opens the door to a dual-currency system, where gold and silver can coexist alongside the US dollar for retail purchases, contractual obligations, and other payments. Supporters of the law argue that gold and silver offer a more stable and tangible store of value than paper currency, especially amid concerns of inflation and monetary debasement. By making these metals legal tender, Texas aims to provide an inflation hedge and diversify the monetary system. Critics, however, caution that integrating physical assets into mainstream commerce could introduce logistical and regulatory complications, such as verifying metal authenticity and securing storage and transport. Fintech innovation and crypto implications The legal tender designation is also expected to catalyse innovation in Texas’s fintech sector. Startups may begin developing digital platforms that facilitate gold- or silver-backed transactions, possibly creating tokenised representations of these metals for easier use in digital commerce. This hybrid approach could blur the lines between traditional finance and emerging digital asset ecosystems. Interestingly, the move may create new competition for cryptocurrencies like Bitcoin and Ethereum. Unlike crypto, gold and silver have a constitutional and historical foundation as currency, which may make them more appealing to conservative investors and those sceptical of decentralised digital currencies. While this doesn’t necessarily diminish crypto’s relevance, it introduces a parallel system that could attract users seeking stability and legal clarity. A national trend in the making? Texas’s bold step may not be an isolated one. Over a dozen US states are reportedly exploring similar legislation, and Texas’s law could serve as a model for operationalising precious metals in daily commerce. If adopted elsewhere, it could spark a nationwide rethink of monetary systems, with implications for central banking, digital currency regulation, and economic policy. As the 2027 implementation date approaches, the financial world will be watching closely to see how Texas navigates this transition. Whether this ushers in a new era of state-level monetary autonomy or remains a symbolic gesture, one thing is clear: the conversation about the future of money in America has fundamentally shifted.

The development reflects a growing appetite for financial sovereignty and alternatives to fiat currency, especially in a climate of rising interest in inflation-resistant assets and decentralised finance.

Texas declares gold and silver as legal tender, paving the way for currency reform

As anticipation builds around the 56th GST Council meeting expected in early July, Finance Minister Nirmala Sitharaman has signalled a significant overhaul of the Goods and Services Tax (GST) structure, including potential rate cuts and simplification of the compliance process. In a recent interview with The Financial Express, Sitharaman confirmed that a more streamlined and easy-to-comply GST regime is in the works and that lowering rates is part of the plan.&nbsp;The finance minister stated that there is active work underway to review the current GST framework, including rate slabs, tax inversions, and the layering of levies. “The time has come for getting some consensus in the GST Council and coming up with a very simplified and easy-to-comply GST. We will be doing it,” she said.&nbsp;According to Sitharaman, the broader expectation is for goods and services tax rates to come down. “Revenue buoyancy will rise if the rates are low enough,” she said, adding that such a move could stimulate consumption and enhance tax compliance. The restructuring could provide relief to consumers by reducing the cost of goods and services while offering clarity and simplicity for businesses.&nbsp;<h2>Balancing reform with revenue</h2>&nbsp;While the proposed reforms are aimed at reducing the compliance burden and improving transparency, concerns remain about how a lower tax regime might impact state revenues, which heavily rely on GST collections. The government is reportedly working to ensure that the reforms are sustainable and equitable, striking a balance between simplicity and revenue needs.&nbsp;The conversation about overhaul comes as India approaches the eighth anniversary of the GST launch on July 1, 2017. The tax reform, seen as a watershed moment, replaced a fragmented and complex indirect tax system with a unified structure designed to minimise cascading and compliance costs. Alongside the GST revamp, the Finance Ministry is also looking at further simplification of income tax laws, land monetisation, and financial sector reforms including new bank licences and amendments to the Insolvency and Bankruptcy Code.

The finance minister stated that there is active work underway to review the current GST framework, including rate slabs, tax inversions, and the layering of levies.

As anticipation builds around the 56th GST Council meeting expected in early July, Finance Minister Nirmala Sitharaman has signalled a significant overhaul of the Goods and Services Tax (GST) structure, including potential rate cuts and simplification of the compliance process. In a recent interview with The Financial Express, Sitharaman confirmed that a more streamlined and easy-to-comply GST regime is in the works and that lowering rates is part of the plan. The finance minister stated that there is active work underway to review the current GST framework, including rate slabs, tax inversions, and the layering of levies. “The time has come for getting some consensus in the GST Council and coming up with a very simplified and easy-to-comply GST. We will be doing it,” she said. According to Sitharaman, the broader expectation is for goods and services tax rates to come down. “Revenue buoyancy will rise if the rates are low enough,” she said, adding that such a move could stimulate consumption and enhance tax compliance. The restructuring could provide relief to consumers by reducing the cost of goods and services while offering clarity and simplicity for businesses. Balancing reform with revenue While the proposed reforms are aimed at reducing the compliance burden and improving transparency, concerns remain about how a lower tax regime might impact state revenues, which heavily rely on GST collections. The government is reportedly working to ensure that the reforms are sustainable and equitable, striking a balance between simplicity and revenue needs. The conversation about overhaul comes as India approaches the eighth anniversary of the GST launch on July 1, 2017. The tax reform, seen as a watershed moment, replaced a fragmented and complex indirect tax system with a unified structure designed to minimise cascading and compliance costs. Alongside the GST revamp, the Finance Ministry is also looking at further simplification of income tax laws, land monetisation, and financial sector reforms including new bank licences and amendments to the Insolvency and Bankruptcy Code.

The finance minister stated that there is active work underway to review the current GST framework, including rate slabs, tax inversions, and the layering of levies.

India set for major GST overhaul; tax rates likely to fall

China’s imports of Iranian crude oil surged to record levels in June, as Tehran boosted shipments ahead of the recent conflict with Israel and Chinese independent refiners rushed to lock in discounted barrels amid tightening global supplies. According to data from ship-tracking firms Vortexa and Kpler, China imported an estimated 1.8 million barrels per day (bpd) of Iranian oil between June 1 and June 20. By June 27, the rolling average had eased slightly to 1.46 million bpd, still sharply higher than May’s 1 million bpd. The surge followed a spike in Iranian loadings in May, which rose to 1.83 million bpd, the highest level in several years.&nbsp;These volumes were driven by Iran’s effort to expedite exports in anticipation of further escalation in its conflict with Israel and possible disruptions in the Strait of Hormuz. Most of the crude was absorbed by China’s so-called “teapot” refineries, smaller independent operators with growing demand and declining inventories ahead of the peak summer consumption season.&nbsp;Iran’s exports peaked at 2.2 million bpd in mid-June but tapered off to 1.5 million bpd in the latter half of the month, following Israeli airstrikes on June 13. Analysts at Petro-Logistics confirmed a notable decline in loadings after the attacks, suggesting short-term supply volatility from OPEC’s third-largest producer could tighten global oil markets.&nbsp;<h2>Sanctions confusion and US signals shift in strategy</h2>&nbsp;The jump in Iranian shipments also coincides with mounting speculation over a potential easing of US sanctions. President Donald Trump, who had reinstated his “maximum pressure” policy earlier this year, said last week, “China can now continue to purchase oil from Iran. Hopefully, they will be purchasing plenty from the US, also.” The statement sparked confusion about whether Washington is softening enforcement.&nbsp;While the White House later clarified that sanctions remain in place, Trump’s comments were widely interpreted as an attempt to leverage China’s energy needs into broader trade concessions. Meanwhile, reports indicate the US is offering Iran a potential $30 billion package in nuclear energy development and sanctions relief in exchange for halting uranium enrichment, an offer Tehran has not accepted.&nbsp;<h2>Oil prices retreat as geopolitical premium fades</h2>&nbsp;Amid easing West Asian tensions, an increase in Iranian oil flows and ongoing OPEC+ production hikes, oil prices declined on June 30. Brent crude futures dropped 66 cents, or 0.97 per cent, to $67.11 per barrel ahead of the August contract expiry. The more active September contract slipped to $65.97. West Texas Intermediate (WTI) fell by 94 cents to $64.58 per barrel.&nbsp;Analysts attributed the dip to the market pricing out the geopolitical risk premium that had briefly pushed Brent above $80 during the 12-day Iran-Israel war. A ceasefire announced by Trump helped cool the market, while news that OPEC+ is preparing a fifth consecutive production increase—adding another 411,000 bpd in August—has further weighed on sentiment. Still, oil benchmarks are expected to post their second consecutive monthly gain of over 5 per cent, reflecting lingering tightness in global supply despite the short-term correction.

Teapot refineries in China drive the oil demand as Iran front-loads shipments in June as fear of war loom. Trump’s mixed signals on sanctions stir market confusion.

China’s imports of Iranian crude oil surged to record levels in June, as Tehran boosted shipments ahead of the recent conflict with Israel and Chinese independent refiners rushed to lock in discounted barrels amid tightening global supplies. According to data from ship-tracking firms Vortexa and Kpler, China imported an estimated 1.8 million barrels per day (bpd) of Iranian oil between June 1 and June 20. By June 27, the rolling average had eased slightly to 1.46 million bpd, still sharply higher than May’s 1 million bpd. The surge followed a spike in Iranian loadings in May, which rose to 1.83 million bpd, the highest level in several years. These volumes were driven by Iran’s effort to expedite exports in anticipation of further escalation in its conflict with Israel and possible disruptions in the Strait of Hormuz. Most of the crude was absorbed by China’s so-called “teapot” refineries, smaller independent operators with growing demand and declining inventories ahead of the peak summer consumption season. Iran’s exports peaked at 2.2 million bpd in mid-June but tapered off to 1.5 million bpd in the latter half of the month, following Israeli airstrikes on June 13. Analysts at Petro-Logistics confirmed a notable decline in loadings after the attacks, suggesting short-term supply volatility from OPEC’s third-largest producer could tighten global oil markets. Sanctions confusion and US signals shift in strategy The jump in Iranian shipments also coincides with mounting speculation over a potential easing of US sanctions. President Donald Trump, who had reinstated his “maximum pressure” policy earlier this year, said last week, “China can now continue to purchase oil from Iran. Hopefully, they will be purchasing plenty from the US, also.” The statement sparked confusion about whether Washington is softening enforcement. While the White House later clarified that sanctions remain in place, Trump’s comments were widely interpreted as an attempt to leverage China’s energy needs into broader trade concessions. Meanwhile, reports indicate the US is offering Iran a potential $30 billion package in nuclear energy development and sanctions relief in exchange for halting uranium enrichment, an offer Tehran has not accepted. Oil prices retreat as geopolitical premium fades Amid easing West Asian tensions, an increase in Iranian oil flows and ongoing OPEC+ production hikes, oil prices declined on June 30. Brent crude futures dropped 66 cents, or 0.97 per cent, to $67.11 per barrel ahead of the August contract expiry. The more active September contract slipped to $65.97. West Texas Intermediate (WTI) fell by 94 cents to $64.58 per barrel. Analysts attributed the dip to the market pricing out the geopolitical risk premium that had briefly pushed Brent above $80 during the 12-day Iran-Israel war. A ceasefire announced by Trump helped cool the market, while news that OPEC+ is preparing a fifth consecutive production increase—adding another 411,000 bpd in August—has further weighed on sentiment. Still, oil benchmarks are expected to post their second consecutive monthly gain of over 5 per cent, reflecting lingering tightness in global supply despite the short-term correction.

Teapot refineries in China drive the oil demand as Iran front-loads shipments in June as fear of war loom. Trump’s mixed signals on sanctions stir market confusion.

China's Iranian oil imports hit record high amid signs of sanctions shift

China has rolled over $3.4 billion in loans to Pakistan, a major financial boost that, along with other inflows, is expected to raise the country’s foreign exchange reserves to $14 billion, meeting a critical benchmark set by the International Monetary Fund (IMF). According to senior officials from Pakistan’s finance ministry, Beijing has extended the maturity of a $2.1 billion deposit that has remained in the State Bank of Pakistan’s reserves for the last three years. In addition, a $1.3 billion commercial loan that Islamabad had repaid two months ago has been refinanced.&nbsp;“These inflows bring our reserves in line with the IMF target,” one official told&nbsp;Reuters&nbsp;on June 29, speaking on condition of anonymity as an official announcement has not yet been made.&nbsp;In addition to the Chinese rollover, Pakistan has secured $1 billion from commercial banks in West Asia and another $500 million from multilateral institutions. Combined, these financial injections have helped Islamabad reach the $14 billion reserve level required by the IMF at the close of the fiscal year on June 30.&nbsp;<h2>Chinese lending crucial to IMF programme compliance</h2>&nbsp;The rollover is particularly significant as Pakistan navigates its recovery under a $7 billion IMF bailout programme. Maintaining sufficient foreign exchange reserves is a central condition of the IMF agreement, and the Chinese support plays a critical role in fulfilling this obligation. Chinese financial assistance has repeatedly been a lifeline for Pakistan in recent years. In March, Beijing extended the maturity of a separate $2 billion loan by one year, reflecting ongoing cooperation between the two nations.&nbsp;Rolling over loans typically involves renegotiating repayment timelines without requiring immediate settlement, allowing the borrower to retain access to funds while easing repayment pressures.&nbsp;Officials in Islamabad say that economic stability is gradually returning, crediting fiscal reforms enacted under the IMF programme. However, they acknowledge that continued external support is vital to keep the recovery on track and avoid balance-of-payments pressures.&nbsp;Pakistan has long struggled with low foreign reserves and external debt repayments. With IMF targets now met, policymakers hope to shift focus toward structural economic reforms and sustainable growth.

The rollover by China is significant as Pakistan navigates its recovery under a $7 billion IMF bailout programme. Maintaining sufficient foreign exchange reserves is a central condition of the IMF agreement.

China has rolled over $3.4 billion in loans to Pakistan, a major financial boost that, along with other inflows, is expected to raise the country’s foreign exchange reserves to $14 billion, meeting a critical benchmark set by the International Monetary Fund (IMF). According to senior officials from Pakistan’s finance ministry, Beijing has extended the maturity of a $2.1 billion deposit that has remained in the State Bank of Pakistan’s reserves for the last three years. In addition, a $1.3 billion commercial loan that Islamabad had repaid two months ago has been refinanced. “These inflows bring our reserves in line with the IMF target,” one official told Reuters on June 29, speaking on condition of anonymity as an official announcement has not yet been made. In addition to the Chinese rollover, Pakistan has secured $1 billion from commercial banks in West Asia and another $500 million from multilateral institutions. Combined, these financial injections have helped Islamabad reach the $14 billion reserve level required by the IMF at the close of the fiscal year on June 30. Chinese lending crucial to IMF programme compliance The rollover is particularly significant as Pakistan navigates its recovery under a $7 billion IMF bailout programme. Maintaining sufficient foreign exchange reserves is a central condition of the IMF agreement, and the Chinese support plays a critical role in fulfilling this obligation. Chinese financial assistance has repeatedly been a lifeline for Pakistan in recent years. In March, Beijing extended the maturity of a separate $2 billion loan by one year, reflecting ongoing cooperation between the two nations. Rolling over loans typically involves renegotiating repayment timelines without requiring immediate settlement, allowing the borrower to retain access to funds while easing repayment pressures. Officials in Islamabad say that economic stability is gradually returning, crediting fiscal reforms enacted under the IMF programme. However, they acknowledge that continued external support is vital to keep the recovery on track and avoid balance-of-payments pressures. Pakistan has long struggled with low foreign reserves and external debt repayments. With IMF targets now met, policymakers hope to shift focus toward structural economic reforms and sustainable growth.

The rollover by China is significant as Pakistan navigates its recovery under a $7 billion IMF bailout programme. Maintaining sufficient foreign exchange reserves is a central condition of the IMF agreement.

China rolls over $3.4 billion in loans to Pakistan, boosting reserves to IMF target

China’s manufacturing activity shrank for the third straight month in June, even as official data showed slight improvement from the previous month, highlighting the continued strain on the world’s second-largest economy amid fragile demand, persistent deflation, and the lingering effects of a trade war with the United States. The official manufacturing Purchasing Managers’ Index (PMI), released by the National Bureau of Statistics (NBS) on June 30, edged up to 49.7 in June from 49.5 in May. While this month’s reading exceeds that of May, it remained below the 50-point threshold that separates expansion from contraction.The sub-index for production improved to 51, signalling a modest pickup in factory output, and new orders rose to 50.2, indicating slight growth in domestic demand. However, employment and inventory levels continued to fall, both remaining firmly in contraction territory at 47.9 and 48, respectively.<h2>Trade ceasefire offers temporary relief</h2>The marginal rebound comes on the heels of a tentative trade truce reached between Beijing and Washington in May, following months of rising tariffs that hit Chinese exporters hard. Shipments to the US plunged 34.5 per cent year-on-year in May and over 21 per cent in April before the agreement eased some pressure. New export orders rose to 47.5 in June from 44.7 in May, suggesting that US demand may be gradually recovering. Still, the export index remains well below the neutral 50 mark, underscoring the fragility of external demand.A separate deal announced on June 27 between the US and China to advance details of their framework agreement was welcomed by markets, though economists warned the lack of specificity raises questions about implementation, especially in sensitive sectors like rare earth exports.Meanwhile, Premier Li Qiang reiterated last week that Beijing is pushing forward with a long-term transition from a manufacturing-led to a consumption-driven economy. But analysts say the transformation will take years and could dampen growth in the short term.<h2>Non-manufacturing sectors provide some lift</h2>China’s non-manufacturing PMI, which includes services and construction, rose to 50.5 in June from 50.3 in May, supported by a surge in construction activity (52.8) as infrastructure investment continued. Services, however, showed signs of stagnation, with that sub-index slipping to 50.1.Despite the modest uptick in activity, China’s economy continues to battle deflationary pressures. Consumer prices fell 0.1 per cent in May, while producer prices saw their sharpest decline since July 2023. Industrial profits plummeted 9.1 per cent year-on-year in May, the biggest drop in seven months.Economists are now calling for more targeted fiscal stimulus, including consumer vouchers and expanded trade-in schemes for appliances and automobiles, to support domestic demand.A private-sector survey by Caixin and S&amp;P Global, set to be released July 1, is expected to show a slight improvement in sentiment among smaller manufacturers, though still in contraction at 49.0.

Modest improvement in China’s PMI offers hope, but export weakness and deflation persist and Beijing faces growing pressure to bolster domestic demand and stabilise industrial sector.

China’s manufacturing activity shrank for the third straight month in June, even as official data showed slight improvement from the previous month, highlighting the continued strain on the world’s second-largest economy amid fragile demand, persistent deflation, and the lingering effects of a trade war with the United States. The official manufacturing Purchasing Managers’ Index (PMI), released by the National Bureau of Statistics (NBS) on June 30, edged up to 49.7 in June from 49.5 in May. While this month’s reading exceeds that of May, it remained below the 50-point threshold that separates expansion from contraction. The sub-index for production improved to 51, signalling a modest pickup in factory output, and new orders rose to 50.2, indicating slight growth in domestic demand. However, employment and inventory levels continued to fall, both remaining firmly in contraction territory at 47.9 and 48, respectively. Trade ceasefire offers temporary relief The marginal rebound comes on the heels of a tentative trade truce reached between Beijing and Washington in May, following months of rising tariffs that hit Chinese exporters hard. Shipments to the US plunged 34.5 per cent year-on-year in May and over 21 per cent in April before the agreement eased some pressure. New export orders rose to 47.5 in June from 44.7 in May, suggesting that US demand may be gradually recovering. Still, the export index remains well below the neutral 50 mark, underscoring the fragility of external demand. A separate deal announced on June 27 between the US and China to advance details of their framework agreement was welcomed by markets, though economists warned the lack of specificity raises questions about implementation, especially in sensitive sectors like rare earth exports. Meanwhile, Premier Li Qiang reiterated last week that Beijing is pushing forward with a long-term transition from a manufacturing-led to a consumption-driven economy. But analysts say the transformation will take years and could dampen growth in the short term. Non-manufacturing sectors provide some lift China’s non-manufacturing PMI, which includes services and construction, rose to 50.5 in June from 50.3 in May, supported by a surge in construction activity (52.8) as infrastructure investment continued. Services, however, showed signs of stagnation, with that sub-index slipping to 50.1. Despite the modest uptick in activity, China’s economy continues to battle deflationary pressures. Consumer prices fell 0.1 per cent in May, while producer prices saw their sharpest decline since July 2023. Industrial profits plummeted 9.1 per cent year-on-year in May, the biggest drop in seven months. Economists are now calling for more targeted fiscal stimulus, including consumer vouchers and expanded trade-in schemes for appliances and automobiles, to support domestic demand. A private-sector survey by Caixin and S&P Global, set to be released July 1, is expected to show a slight improvement in sentiment among smaller manufacturers, though still in contraction at 49.0.

Modest improvement in China’s PMI offers hope, but export weakness and deflation persist and Beijing faces growing pressure to bolster domestic demand and stabilise industrial sector.

China’s manufacturing contracts for third straight month despite trade truce and stimulus push

Business confidence among UK firms surged to its highest level since 2015 in June, according to new data from Lloyds Bank, signalling renewed optimism about the economic outlook after months of turbulence caused by global trade tensions and domestic tax increases. The Lloyds Bank Business Barometer rose by one point to 51 per cent this month, marking the highest level of employer confidence since November 2015. The increase builds on a sharp 11-point jump in May that followed a notable decline in April, when concerns over US President Donald Trump’s tariff hikes and the UK government’s new employer tax measures dampened sentiment.The June high comes after what many business leaders described as a “harrowing” first quarter. In April, the Institute of Chartered Accountants in England and Wales (ICAEW) reported that its business confidence index had plunged to -3, the lowest level in over two years. The drop was attributed to April’s rise in employer national insurance contributions and the economic uncertainty sparked by Trump’s global tariff escalation.Lloyds’ May report, however, marked a clear turning point. The easing of some US tariffs, combined with a draft UK-US agreement to cut levies on British autos, aluminium, and steel, contributed to a sharp rebound in confidence. Now, with financial markets stabilising and retail sales rebounding, employers appear more willing to invest and hire.<h2>Hiring and pay expectations rise</h2>Lloyds’ latest survey also suggests that firms are positioning themselves for future growth. Hiring intentions strengthened, with 60 per cent of companies now expecting to increase staffing levels over the next 12 months. Wage expectations also rose for the second consecutive month; 36 per cent of firms now forecast average pay increases of at least 3 per cent.“The rebound in business confidence suggests that firms might be in a stronger position for the next quarter,” said Hann-Ju Ho, senior economist at Lloyds Bank Commercial Banking. “The rise in confidence is driven by a sharp increase in economic optimism, reflecting the recovery in financial markets amid the easing of global trade tensions.”Regionally, sentiment improved across most parts of the UK, with the East Midlands, Northern Ireland, and the South West recording the biggest gains. Construction firms were among the most upbeat, reaching their highest confidence levels in nine months, while services led the broader recovery in sentiment, even as manufacturing continued to face export challenges.<h2>Outlook still cautious despite gains</h2>Despite the positive data, economists warn that underlying risks remain. The Confederation of British Industry (CBI) noted that expectations for the broader economy remain subdued due to high employment costs, cautious consumer spending, and geopolitical uncertainty. Still, the overall upward momentum in business sentiment offers a promising signal for the second half of 2025, especially if trade tensions continue to ease and domestic demand remains resilient.

The Lloyds Bank Business Barometer rose by one point to 51 per cent this month, marking the highest level of employer confidence since November 2015. Hiring, wage growth outlook improves as employers regain optimism.

Business confidence among UK firms surged to its highest level since 2015 in June, according to new data from Lloyds Bank, signalling renewed optimism about the economic outlook after months of turbulence caused by global trade tensions and domestic tax increases. The Lloyds Bank Business Barometer rose by one point to 51 per cent this month, marking the highest level of employer confidence since November 2015. The increase builds on a sharp 11-point jump in May that followed a notable decline in April, when concerns over US President Donald Trump’s tariff hikes and the UK government’s new employer tax measures dampened sentiment. The June high comes after what many business leaders described as a “harrowing” first quarter. In April, the Institute of Chartered Accountants in England and Wales (ICAEW) reported that its business confidence index had plunged to -3, the lowest level in over two years. The drop was attributed to April’s rise in employer national insurance contributions and the economic uncertainty sparked by Trump’s global tariff escalation. Lloyds’ May report, however, marked a clear turning point. The easing of some US tariffs, combined with a draft UK-US agreement to cut levies on British autos, aluminium, and steel, contributed to a sharp rebound in confidence. Now, with financial markets stabilising and retail sales rebounding, employers appear more willing to invest and hire. Hiring and pay expectations rise Lloyds’ latest survey also suggests that firms are positioning themselves for future growth. Hiring intentions strengthened, with 60 per cent of companies now expecting to increase staffing levels over the next 12 months. Wage expectations also rose for the second consecutive month; 36 per cent of firms now forecast average pay increases of at least 3 per cent. “The rebound in business confidence suggests that firms might be in a stronger position for the next quarter,” said Hann-Ju Ho, senior economist at Lloyds Bank Commercial Banking. “The rise in confidence is driven by a sharp increase in economic optimism, reflecting the recovery in financial markets amid the easing of global trade tensions.” Regionally, sentiment improved across most parts of the UK, with the East Midlands, Northern Ireland, and the South West recording the biggest gains. Construction firms were among the most upbeat, reaching their highest confidence levels in nine months, while services led the broader recovery in sentiment, even as manufacturing continued to face export challenges. Outlook still cautious despite gains Despite the positive data, economists warn that underlying risks remain. The Confederation of British Industry (CBI) noted that expectations for the broader economy remain subdued due to high employment costs, cautious consumer spending, and geopolitical uncertainty. Still, the overall upward momentum in business sentiment offers a promising signal for the second half of 2025, especially if trade tensions continue to ease and domestic demand remains resilient.

The Lloyds Bank Business Barometer rose by one point to 51 per cent this month, marking the highest level of employer confidence since November 2015. Hiring, wage growth outlook improves as employers regain optimism.

UK business confidence hits nine-year high amid easing trade tensions

With less than ten days remaining before the United States imposes sweeping tariff hikes on several trading partners, President Donald Trump has called trade with Japan “unfair” and signalled that the 25 per cent tariffs on automobiles may remain in place unless a new deal is reached. Trump’s remarks, made during a Fox News interview aired June 29, raise fresh concerns about a potential breakdown in trade negotiations that could significantly harm Japan’s already fragile economic recovery.“They won’t take our cars, and yet we take millions and millions of their cars into the United States. It’s not fair,” Trump said, referencing Japan’s limited import of US vehicles while dominating the American market. “I could send one [letter] to Japan. ‘Dear Mr Japan, here’s the story. You’re going to pay a 25 per cent tariff on your cars,’” he added. Trump also suggested Japan could help reduce the bilateral trade deficit by purchasing more American oil and goods. “Now we have oil. They could take a lot of oil. They could take a lot of other things,” he said.The Trump administration’s temporary suspension of country-based reciprocal tariffs expires on July 9. Without a deal, Japan faces not only the continuation of existing 25 per cent automobile tariffs but also a jump in broader duties from the current 10 per cent to as high as 24 per cent. These proposed levies would hit key export sectors, especially autos, which account for about 28 per cent of Japan’s $145 billion in annual exports to the US.<h2>Japan’s trade envoy pushes for breakthrough</h2>In response to the pressure, Japan’s chief trade negotiator Ryosei Akazawa, flew to Washington last week for a seventh round of talks with US Commerce Secretary Howard Lutnick. While the initial meeting was held in person, two subsequent conversations took place over the phone, indicating urgency but also unresolved sticking points. Japanese government statements over the weekend described the discussions as “fruitful” but offered no concrete signs of progress.Akazawa has pushed for a comprehensive agreement that includes sector-specific tariff relief, especially for autos. He emphasised that Japan’s automakers have invested more than $60 billion in the US, creating 2.3 million American jobs, and warned that the 25 per cent tariff is “unacceptable”.<h2>Falling exports underscore growing risks</h2>Trade data for May reinforces Tokyo’s concerns. Japanese exports fell for the first time in eight months, dropping 1.7 per cent year-on-year, while exports to the US plunged 11.1 per cent. The downturn reflects the chilling effect of looming tariffs, which had already prompted companies to front-load shipments earlier this year. Imports also fell 7.7 per cent, leading to a trade deficit of 637.6 billion yen ($4.39 billion) in May.Economists warn that if the full range of US tariffs goes into effect, Japan’s exports to the US could fall by 20-30 per cent, shaving up to 1 percentage point from GDP and risking a technical recession after the economy already contracted in the first quarter. While Trump maintains that the US can unilaterally set its trade terms, failure to reach a deal with Japan could deal a major blow to both countries’ economic outlooks.

Tokyo is trying to strike a trade deal with the United States as July 9 tariff deadline looms; falling exports are adding pressure to the fragile Japanese economy.

With less than ten days remaining before the United States imposes sweeping tariff hikes on several trading partners, President Donald Trump has called trade with Japan “unfair” and signalled that the 25 per cent tariffs on automobiles may remain in place unless a new deal is reached. Trump’s remarks, made during a Fox News interview aired June 29, raise fresh concerns about a potential breakdown in trade negotiations that could significantly harm Japan’s already fragile economic recovery. “They won’t take our cars, and yet we take millions and millions of their cars into the United States. It’s not fair,” Trump said, referencing Japan’s limited import of US vehicles while dominating the American market. “I could send one [letter] to Japan. ‘Dear Mr Japan, here’s the story. You’re going to pay a 25 per cent tariff on your cars,’” he added. Trump also suggested Japan could help reduce the bilateral trade deficit by purchasing more American oil and goods. “Now we have oil. They could take a lot of oil. They could take a lot of other things,” he said. The Trump administration’s temporary suspension of country-based reciprocal tariffs expires on July 9. Without a deal, Japan faces not only the continuation of existing 25 per cent automobile tariffs but also a jump in broader duties from the current 10 per cent to as high as 24 per cent. These proposed levies would hit key export sectors, especially autos, which account for about 28 per cent of Japan’s $145 billion in annual exports to the US. Japan’s trade envoy pushes for breakthrough In response to the pressure, Japan’s chief trade negotiator Ryosei Akazawa, flew to Washington last week for a seventh round of talks with US Commerce Secretary Howard Lutnick. While the initial meeting was held in person, two subsequent conversations took place over the phone, indicating urgency but also unresolved sticking points. Japanese government statements over the weekend described the discussions as “fruitful” but offered no concrete signs of progress. Akazawa has pushed for a comprehensive agreement that includes sector-specific tariff relief, especially for autos. He emphasised that Japan’s automakers have invested more than $60 billion in the US, creating 2.3 million American jobs, and warned that the 25 per cent tariff is “unacceptable”. Falling exports underscore growing risks Trade data for May reinforces Tokyo’s concerns. Japanese exports fell for the first time in eight months, dropping 1.7 per cent year-on-year, while exports to the US plunged 11.1 per cent. The downturn reflects the chilling effect of looming tariffs, which had already prompted companies to front-load shipments earlier this year. Imports also fell 7.7 per cent, leading to a trade deficit of 637.6 billion yen ($4.39 billion) in May. Economists warn that if the full range of US tariffs goes into effect, Japan’s exports to the US could fall by 20-30 per cent, shaving up to 1 percentage point from GDP and risking a technical recession after the economy already contracted in the first quarter. While Trump maintains that the US can unilaterally set its trade terms, failure to reach a deal with Japan could deal a major blow to both countries’ economic outlooks.

Tokyo is trying to strike a trade deal with the United States as July 9 tariff deadline looms; falling exports are adding pressure to the fragile Japanese economy.

Trump threatens Japan with 25% auto tariffs ahead of deadline, citing ‘unfair’ trade

US President Donald Trump has reaffirmed his intention not to extend the self-imposed July 9 deadline for countries to reach new trade agreements with the United States, signalling that tariffs of up to 25 per cent or more could soon take effect on nations with which the US has not finalised deals by then. Speaking in a taped interview on Fox News’s Sunday Morning Futures, aired June 29, Trump said, “I don’t think I’ll need to” extend the cutoff, though he added, “I could, no big deal.”The president emphasised his preference for sticking to the deadline, even joking on June 27 that he would rather shorten it and simply notify nations, “Congratulations, you’re paying 25 per cent.” He noted that formal letters notifying countries of impending tariffs would begin going out “pretty soon”.The July 9 cutoff marks the end of a 90-day negotiating window, initially set when the administration suspended sweeping country-based tariffs announced on ‘Liberation Day’ in April. Trump and his trade advisers have used the period to push for agreements aimed at reducing trade deficits and dismantling barriers that disadvantage US goods and services.<h2>Internal doubts persist</h2>However, internal differences over the feasibility of the timeline have surfaced. Treasury Secretary Scott Bessent, in an interview on Fox Business, cast doubt on the administration’s ability to finalise deals with all major trading partners by July 9. “If we can ink 10 or 12 of the important 18—there are another 20 important relationships—then I think we could have trade wrapped up by Labor Day,” Bessent said. His remarks highlight a more pragmatic approach within the administration, contrasting with Trump’s public hardline posture.Negotiations are ongoing with several nations, including India, which Trump suggested could be close to reaching an agreement. Indian trade officials recently held meetings in Washington. However, even the high-profile UK trade pact, once touted by the administration as a major breakthrough, still contains unresolved issues. Similarly, the recently concluded China agreement leaves significant gaps, especially around enforcement of fentanyl trafficking rules and US market access.Trump’s insistence on a hard deadline underscores his administration’s effort to maintain negotiating leverage. But critics warn that pushing nations too aggressively could result in shallow, hastily made deals or, worse, the imposition of disruptive tariffs that may harm US businesses and consumers.The president also touched on other major topics during his interview, including a pending deal involving TikTok, suggesting a group of “very wealthy people” were close to acquiring the platform. He hinted that Chinese approval might be required and promised more details “in about two weeks”, a familiar refrain in his policy announcements.

The Trump administration faces internal doubts about the tariff timeline; US trade pacts remain incomplete with most of its trading partners.

US President Donald Trump has reaffirmed his intention not to extend the self-imposed July 9 deadline for countries to reach new trade agreements with the United States, signalling that tariffs of up to 25 per cent or more could soon take effect on nations with which the US has not finalised deals by then. Speaking in a taped interview on Fox News’s Sunday Morning Futures, aired June 29, Trump said, “I don’t think I’ll need to” extend the cutoff, though he added, “I could, no big deal.” The president emphasised his preference for sticking to the deadline, even joking on June 27 that he would rather shorten it and simply notify nations, “Congratulations, you’re paying 25 per cent.” He noted that formal letters notifying countries of impending tariffs would begin going out “pretty soon”. The July 9 cutoff marks the end of a 90-day negotiating window, initially set when the administration suspended sweeping country-based tariffs announced on ‘Liberation Day’ in April. Trump and his trade advisers have used the period to push for agreements aimed at reducing trade deficits and dismantling barriers that disadvantage US goods and services. Internal doubts persist However, internal differences over the feasibility of the timeline have surfaced. Treasury Secretary Scott Bessent, in an interview on Fox Business, cast doubt on the administration’s ability to finalise deals with all major trading partners by July 9. “If we can ink 10 or 12 of the important 18—there are another 20 important relationships—then I think we could have trade wrapped up by Labor Day,” Bessent said. His remarks highlight a more pragmatic approach within the administration, contrasting with Trump’s public hardline posture. Negotiations are ongoing with several nations, including India, which Trump suggested could be close to reaching an agreement. Indian trade officials recently held meetings in Washington. However, even the high-profile UK trade pact, once touted by the administration as a major breakthrough, still contains unresolved issues. Similarly, the recently concluded China agreement leaves significant gaps, especially around enforcement of fentanyl trafficking rules and US market access. Trump’s insistence on a hard deadline underscores his administration’s effort to maintain negotiating leverage. But critics warn that pushing nations too aggressively could result in shallow, hastily made deals or, worse, the imposition of disruptive tariffs that may harm US businesses and consumers. The president also touched on other major topics during his interview, including a pending deal involving TikTok, suggesting a group of “very wealthy people” were close to acquiring the platform. He hinted that Chinese approval might be required and promised more details “in about two weeks”, a familiar refrain in his policy announcements.

The Trump administration faces internal doubts about the tariff timeline; US trade pacts remain incomplete with most of its trading partners.

Trump says he’ll stick to July 9 tariff deadline, warns countries to finalise trade deals

Canada said Sunday it will rescind taxes impacting US tech firms in hopes of reaching a trade agreement with Washington, after US President Donald Trump called off talks with Ottawa in retaliation for the levy.Canadian Finance Minister Francois-Philippe Champagne "announced today that Canada would rescind the Digital Services Tax (DST) in anticipation of a mutually beneficial comprehensive trade arrangement with the United States," a government statement said.It added that Trump and Canadian Prime Minister Mark Carney "have agreed that parties will resume negotiations with a view towards agreeing on a deal by July 21, 2025."Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

Canadian Finance Minister Francois-Philippe Champagne "announced today that Canada would rescind the Digital Services Tax (DST) in anticipation of a mutually beneficial comprehensive trade arrangement with the United States," a government statement said.

Canada said Sunday it will rescind taxes impacting US tech firms in hopes of reaching a trade agreement with Washington, after US President Donald Trump called off talks with Ottawa in retaliation for the levy. Canadian Finance Minister Francois-Philippe Champagne "announced today that Canada would rescind the Digital Services Tax (DST) in anticipation of a mutually beneficial comprehensive trade arrangement with the United States," a government statement said. It added that Trump and Canadian Prime Minister Mark Carney "have agreed that parties will resume negotiations with a view towards agreeing on a deal by July 21, 2025." Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

Canadian Finance Minister Francois-Philippe Champagne "announced today that Canada would rescind the Digital Services Tax (DST) in anticipation of a mutually beneficial comprehensive trade arrangement with the United States," a government statement said.

Canada rescinds tax hitting US tech firms: govt

The US housing market is showing increasing signs of weakness, with back-to-back monthly declines in home prices raising the risk of a sustained downturn. Elevated mortgage rates near 7 per cent are weighing on buyer demand, even as housing supply begins to rise, marking a notable shift in market dynamics after years of pandemic-era price surges. Data released this week paints a consistent picture of deceleration. The S&amp;P CoreLogic Case-Shiller 20-city home price index fell 0.3 per cent month-over-month in April, following a downwardly revised 0.2 per cent decline in March. On a three-month annualised basis, home prices dropped by 0.4 per cent, reflecting softening momentum despite a modest 2.7 per cent year-over-year increase, the slowest pace since August 2023.&nbsp;Similarly, the Federal Housing Finance Agency (FHFA) home price index recorded a 0.4 per cent decline in April, adding to the evidence of a cooling market. These figures suggest the housing sector is beginning to feel the full effects of higher borrowing costs, with fewer buyers able to afford monthly payments at current interest rates.&nbsp;<h2>Slowing momentum, rising supply</h2>&nbsp;While home prices are still higher than a year ago, the rate of growth has slowed sharply. According to the Case-Shiller index, the 2.7 per cent annual price gain in April was down from 3.4 per cent in March and marks the smallest increase in nearly two years. In comparison, home prices rose by double digits throughout much of 2021 and 2022.&nbsp;The number of homes for sale has also increased and is now back to pre-pandemic levels. However, the market is not flooded, with just 6 per cent of sellers reportedly at risk of selling at a loss, according to Redfin. Still, the increase in listings, combined with muted buyer demand, is forcing sellers to adjust pricing expectations downward.&nbsp;This trend is further supported by the National Association of Realtors, which reported that the median sale price of existing homes has declined for five straight months on a seasonally adjusted basis. Additionally, sales of existing homes were down 0.7 per cent in May year-over-year, and the share of first-time buyers dropped to 30 per cent, well below the historical average of 40 per cent.&nbsp;<h2>Regional divergence widens</h2>&nbsp;The data also reflects a geographic reshuffling of price trends. Historically more stable markets in the Midwest and Northeast are now leading in price growth, while former pandemic-era hotspots in the South and West are underperforming.&nbsp;Among the top-performing metro areas, New York posted a 7.9 per cent annual gain in April, followed by Chicago at 6.0 per cent and Detroit at 5.5 per cent. Conversely, Sun Belt cities that once saw record demand are now seeing declines or stagnation. Tampa experienced a 2.2 per cent price drop, Dallas saw a 0.2 per cent decline, and prices in San Francisco were flat. Miami and Phoenix managed modest gains of just over 1 per cent. The rotation reflects a shift from speculative momentum to fundamentals such as local economic conditions, affordability, and labour market trends.&nbsp;<h2>Correction risks rising, but deep crash unlikely</h2>&nbsp;While the data points to a market in retreat, the likelihood of a dramatic crash akin to the 2008 housing crisis remains low. Lending standards have remained tight since the Great Financial Crisis, limiting risky loans. Additionally, homeowners are not facing widespread financial distress, and most are locked into low fixed-rate mortgages from earlier in the decade.&nbsp;Still, both Capital Economics and Citi Research note growing risks of an extended correction. Citi highlighted headwinds such as high rates, economic uncertainty, weakening consumer demand, and a softening labour market. Despite a generally healthy mortgage market, prolonged price softness could weigh on consumer sentiment and broader economic activity.

These figures suggest the housing sector is beginning to feel the full effects of higher borrowing costs, with fewer buyers able to afford monthly payments at current interest rates.

The US housing market is showing increasing signs of weakness, with back-to-back monthly declines in home prices raising the risk of a sustained downturn. Elevated mortgage rates near 7 per cent are weighing on buyer demand, even as housing supply begins to rise, marking a notable shift in market dynamics after years of pandemic-era price surges. Data released this week paints a consistent picture of deceleration. The S&P CoreLogic Case-Shiller 20-city home price index fell 0.3 per cent month-over-month in April, following a downwardly revised 0.2 per cent decline in March. On a three-month annualised basis, home prices dropped by 0.4 per cent, reflecting softening momentum despite a modest 2.7 per cent year-over-year increase, the slowest pace since August 2023. Similarly, the Federal Housing Finance Agency (FHFA) home price index recorded a 0.4 per cent decline in April, adding to the evidence of a cooling market. These figures suggest the housing sector is beginning to feel the full effects of higher borrowing costs, with fewer buyers able to afford monthly payments at current interest rates. Slowing momentum, rising supply While home prices are still higher than a year ago, the rate of growth has slowed sharply. According to the Case-Shiller index, the 2.7 per cent annual price gain in April was down from 3.4 per cent in March and marks the smallest increase in nearly two years. In comparison, home prices rose by double digits throughout much of 2021 and 2022. The number of homes for sale has also increased and is now back to pre-pandemic levels. However, the market is not flooded, with just 6 per cent of sellers reportedly at risk of selling at a loss, according to Redfin. Still, the increase in listings, combined with muted buyer demand, is forcing sellers to adjust pricing expectations downward. This trend is further supported by the National Association of Realtors, which reported that the median sale price of existing homes has declined for five straight months on a seasonally adjusted basis. Additionally, sales of existing homes were down 0.7 per cent in May year-over-year, and the share of first-time buyers dropped to 30 per cent, well below the historical average of 40 per cent. Regional divergence widens The data also reflects a geographic reshuffling of price trends. Historically more stable markets in the Midwest and Northeast are now leading in price growth, while former pandemic-era hotspots in the South and West are underperforming. Among the top-performing metro areas, New York posted a 7.9 per cent annual gain in April, followed by Chicago at 6.0 per cent and Detroit at 5.5 per cent. Conversely, Sun Belt cities that once saw record demand are now seeing declines or stagnation. Tampa experienced a 2.2 per cent price drop, Dallas saw a 0.2 per cent decline, and prices in San Francisco were flat. Miami and Phoenix managed modest gains of just over 1 per cent. The rotation reflects a shift from speculative momentum to fundamentals such as local economic conditions, affordability, and labour market trends. Correction risks rising, but deep crash unlikely While the data points to a market in retreat, the likelihood of a dramatic crash akin to the 2008 housing crisis remains low. Lending standards have remained tight since the Great Financial Crisis, limiting risky loans. Additionally, homeowners are not facing widespread financial distress, and most are locked into low fixed-rate mortgages from earlier in the decade. Still, both Capital Economics and Citi Research note growing risks of an extended correction. Citi highlighted headwinds such as high rates, economic uncertainty, weakening consumer demand, and a softening labour market. Despite a generally healthy mortgage market, prolonged price softness could weigh on consumer sentiment and broader economic activity.

The recent figures suggest the housing sector is beginning to feel the full effects of higher borrowing costs, with fewer buyers able to afford monthly payments at current interest rates.

US housing market faces mounting pressure as home prices slide

Meta Platforms Inc. has hired four senior artificial intelligence researchers from OpenAI, further accelerating its aggressive push to build a “superintelligence” team focused on developing AI systems more advanced than humans. According to sources cited by The Information and confirmed by multiple media reports, the new hires include Jiahui Yu, Shuchao Bi, Shengjia Zhao, and Hongyu Ren. Yu previously led OpenAI’s Perception team, while the others were prominent figures in foundational AI research at the ChatGPT maker.&nbsp;The move comes just days after Meta brought in Lucas Beyer, Alexander Kolesnikov, and Xiaohua Zhai, three AI scientists from OpenAI’s Zurich office, as part of a broader campaign to assemble elite talent. All these hires are now working under Meta’s new internal “superintelligence team”, helmed by Scale AI founder Alexandr Wang. Meta and OpenAI have not responded to requests for comment, while the four researchers have remained silent on their exits.<h2>Zuckerberg’s hands-on AI talent hunt</h2>Reports suggest Meta CEO Mark Zuckerberg has personally led the high-profile talent poaching effort. Over recent months, he’s compiled a list of top AI minds, dubbed “the list” inside Silicon Valley, and offered them compensation packages reportedly worth up to $100 million to leave rival companies such as OpenAI, Google DeepMind, and Amazon.&nbsp;Zuckerberg has also been directly reaching out to promising researchers, often after reviewing their published academic work. The recruitment campaign has included participation from other senior Meta executives, coordinated through a private WhatsApp group called “Recruiting Party”, according to the Wall Street Journal.&nbsp;One recruit described the effort as a deliberate “transfusion from the country’s top AI labs”. Meta’s strategy reflects a growing belief that assembling the right talent will be key to dominating the next era of artificial general intelligence (AGI).&nbsp;<h2>Rivalries and reactions intensify</h2>&nbsp;The high-stakes talent war has drawn strong reactions from competitors. A few days ago, OpenAI CEO Sam Altman criticised Meta’s approach on the Uncapped podcast, hosted by his brother Jack Altman. He called the company’s lavish signing offers “crazy” and warned that upfront guaranteed pay, rather than mission-driven motivation, could damage company culture. “So far, none of our best people have decided to take them up on that,” Altman said.&nbsp;Meta’s Superintelligence group has taken shape just weeks after the company invested $14 billion into Scale AI, putting Alexandr Wang in charge of its cutting-edge AI efforts. The initiative also follows internal delays in rolling out “Behemoth”, Meta’s next-generation AI model, sparking concern over its AI strategy's pace and direction.&nbsp;With its latest hires, Meta is signalling its intention to go all-in on superintelligent AI and challenge rivals head-on in what is shaping up to be Silicon Valley’s most intense innovation race.

With its latest hires, Meta is signalling its intention to go all-in on superintelligent AI and challenge rivals head-on in what is shaping up to be Silicon Valley’s most intense innovation race.

Meta Platforms Inc. has hired four senior artificial intelligence researchers from OpenAI, further accelerating its aggressive push to build a “superintelligence” team focused on developing AI systems more advanced than humans. According to sources cited by The Information and confirmed by multiple media reports, the new hires include Jiahui Yu, Shuchao Bi, Shengjia Zhao, and Hongyu Ren. Yu previously led OpenAI’s Perception team, while the others were prominent figures in foundational AI research at the ChatGPT maker. The move comes just days after Meta brought in Lucas Beyer, Alexander Kolesnikov, and Xiaohua Zhai, three AI scientists from OpenAI’s Zurich office, as part of a broader campaign to assemble elite talent. All these hires are now working under Meta’s new internal “superintelligence team”, helmed by Scale AI founder Alexandr Wang. Meta and OpenAI have not responded to requests for comment, while the four researchers have remained silent on their exits. Zuckerberg’s hands-on AI talent hunt Reports suggest Meta CEO Mark Zuckerberg has personally led the high-profile talent poaching effort. Over recent months, he’s compiled a list of top AI minds, dubbed “the list” inside Silicon Valley, and offered them compensation packages reportedly worth up to $100 million to leave rival companies such as OpenAI, Google DeepMind, and Amazon. Zuckerberg has also been directly reaching out to promising researchers, often after reviewing their published academic work. The recruitment campaign has included participation from other senior Meta executives, coordinated through a private WhatsApp group called “Recruiting Party”, according to the Wall Street Journal. One recruit described the effort as a deliberate “transfusion from the country’s top AI labs”. Meta’s strategy reflects a growing belief that assembling the right talent will be key to dominating the next era of artificial general intelligence (AGI). Rivalries and reactions intensify The high-stakes talent war has drawn strong reactions from competitors. A few days ago, OpenAI CEO Sam Altman criticised Meta’s approach on the Uncapped podcast, hosted by his brother Jack Altman. He called the company’s lavish signing offers “crazy” and warned that upfront guaranteed pay, rather than mission-driven motivation, could damage company culture. “So far, none of our best people have decided to take them up on that,” Altman said. Meta’s Superintelligence group has taken shape just weeks after the company invested $14 billion into Scale AI, putting Alexandr Wang in charge of its cutting-edge AI efforts. The initiative also follows internal delays in rolling out “Behemoth”, Meta’s next-generation AI model, sparking concern over its AI strategy's pace and direction. With its latest hires, Meta is signalling its intention to go all-in on superintelligent AI and challenge rivals head-on in what is shaping up to be Silicon Valley’s most intense innovation race.

With its latest hires, Meta is signalling its intention to go all-in on superintelligent AI and challenge rivals head-on in what is shaping up to be Silicon Valley’s most intense innovation race.

Meta poaches top OpenAI researchers for superintelligence push

Insiders at Nvidia have sold more than $1 billion worth of shares over the past 12 months, with over $500 million worth of stock sales taking place in June alone, according to a report by the Financial Times. The surge in insider trading comes as Nvidia’s stock price soared to record highs, driven by global enthusiasm for artificial intelligence (AI) technologies and the massive demand for high-performance chips. The California-based chipmaking company briefly became the world’s most valuable company last week, buoyed by optimism over AI infrastructure spending by governments and private companies. Nvidia’s market capitalisation has skyrocketed to $3.8 trillion, quadrupling in just a few years.Nvidia CEO Jensen Huang began selling shares this week for the first time since September, the FT reported, citing filings with the US Securities and Exchange Commission (SEC). The sales are part of a pre-arranged trading plan filed in March that only became active following a 90-day mandatory cooling-off period.According to VerityData, which tracks insider transactions, the surge in Nvidia’s share price above $150 triggered Huang’s sales. Under the current trading plan, he can sell up to six million shares by the end of 2025, potentially earning over $900 million at current market prices. Despite these sales, Huang still retains the vast majority of his Nvidia holdings. His estimated net worth now stands at $138 billion, according to Forbes.<h2>Board members and executives also cash in</h2>Several senior figures at Nvidia have also taken advantage of the stock’s dramatic rise. Mark Stevens, a long-time board member and early investor through Sequoia Capital, has announced plans to sell up to four million shares, worth approximately $550 million, and has already sold $288 million.Jay Puri, Nvidia’s executive VP of worldwide field operations and a key envoy for China relations, sold about $25 million in shares this week. Other board members, including Tench Coxe and Brooke Seawell, have also moved to liquidate portions of their holdings, with Coxe selling around $143 million and Seawell about $48 million.The share sales follow a steep rebound in Nvidia’s stock price, which has jumped more than 60 per cent from their closing low on April 4. The stock had dipped earlier this year amid concerns about new US export restrictions on AI chips and competitive threats from Chinese firms like DeepSeek.Analysts say the stock’s rally is driven by renewed optimism that the AI “gold rush” is far from over. As investors continue to pile into the AI trade, Nvidia’s insiders appear to be cashing in, strategically and legally, on their long-held stakes.

Nvidia CEO Jensen Huang and many senior executives cash in as the chipmaker's stock hits record high. Nvidia’s market capitalisation has skyrocketed to $3.8 trillion, quadrupling in just a few years.

Insiders at Nvidia have sold more than $1 billion worth of shares over the past 12 months, with over $500 million worth of stock sales taking place in June alone, according to a report by the Financial Times. The surge in insider trading comes as Nvidia’s stock price soared to record highs, driven by global enthusiasm for artificial intelligence (AI) technologies and the massive demand for high-performance chips. The California-based chipmaking company briefly became the world’s most valuable company last week, buoyed by optimism over AI infrastructure spending by governments and private companies. Nvidia’s market capitalisation has skyrocketed to $3.8 trillion, quadrupling in just a few years. Nvidia CEO Jensen Huang began selling shares this week for the first time since September, the FT reported, citing filings with the US Securities and Exchange Commission (SEC). The sales are part of a pre-arranged trading plan filed in March that only became active following a 90-day mandatory cooling-off period. According to VerityData, which tracks insider transactions, the surge in Nvidia’s share price above $150 triggered Huang’s sales. Under the current trading plan, he can sell up to six million shares by the end of 2025, potentially earning over $900 million at current market prices. Despite these sales, Huang still retains the vast majority of his Nvidia holdings. His estimated net worth now stands at $138 billion, according to Forbes. Board members and executives also cash in Several senior figures at Nvidia have also taken advantage of the stock’s dramatic rise. Mark Stevens, a long-time board member and early investor through Sequoia Capital, has announced plans to sell up to four million shares, worth approximately $550 million, and has already sold $288 million. Jay Puri, Nvidia’s executive VP of worldwide field operations and a key envoy for China relations, sold about $25 million in shares this week. Other board members, including Tench Coxe and Brooke Seawell, have also moved to liquidate portions of their holdings, with Coxe selling around $143 million and Seawell about $48 million. The share sales follow a steep rebound in Nvidia’s stock price, which has jumped more than 60 per cent from their closing low on April 4. The stock had dipped earlier this year amid concerns about new US export restrictions on AI chips and competitive threats from Chinese firms like DeepSeek. Analysts say the stock’s rally is driven by renewed optimism that the AI “gold rush” is far from over. As investors continue to pile into the AI trade, Nvidia’s insiders appear to be cashing in, strategically and legally, on their long-held stakes.

Nvidia CEO Jensen Huang and many senior executives cash in as the chipmaker's stock hits record high. Nvidia’s market capitalisation has skyrocketed to $3.8 trillion, quadrupling in just a few years.

Nvidia insiders sell over $1 billion in shares amid AI boom

India’s red-hot $5.4 trillion stock market is showing signs of fatigue as high valuations, slowing earnings growth, and limited exposure to emerging themes like artificial intelligence (AI) cause global investors to reallocate capital to more promising Asian markets. While the country’s relatively insulated economy helped its equity markets emerge as a safe haven during global turmoil triggered by US President Donald Trump’s tariff hikes in April, the easing of those trade concerns has reduced India’s appeal.&nbsp;The MSCI India Index, which is up 6.6 per cent, is now trailing the broader MSCI Asia Pacific Index by nearly six percentage points for 2025 so far. “This is not the year for India,” Amol Gogate, emerging markets fund manager at Carmignac, London, told Bloomberg. “India doesn’t have a lot going for it compared with other markets such as China.”<h2>Valuations stretch investor patience</h2>One of the key headwinds is valuation. The MSCI India Index is currently trading at nearly 23 times its estimated earnings, one of the highest in the world and well above its five-year average of 21.5. Meanwhile, expected earnings growth from Indian corporates is now lagging behind regional peers such as South Korea and Taiwan.Jian Shi Cortesi, a fund manager at GAM Investment Management in Zurich, told Bloomberg that, “We don’t have an overweight allocation to India, and that’s mainly because of valuations… We like the country for its longer-term potential, but right now valuation is even more stretched than in the past.”The high premium attached to Indian stocks stands in contrast to the recent rally in Hong Kong-listed Chinese equities, which have surged 20 per cent this year on the back of AI breakthroughs and fresh listings. India, by comparison, offers limited access to the AI boom that global investors are keen to ride. Still, some fund managers remain optimistic about the country’s long-term trajectory.&nbsp;<h2>Foreign fund outflows highlight sentiment shift</h2>Despite a resilient domestic economy, foreign investor sentiment has become increasingly volatile. So far in 2025, foreign institutional investors (FIIs) have offloaded nearly $13 billion (about ₹1.12 lakh crore) worth of Indian equities, putting the market on course for its second consecutive year of outflows, based on data compiled by Bloomberg since 1999. In contrast, domestic institutional investors (DIIs) have stepped in to support the market, net purchasing ₹3.43 lakh crore ($40 billion) worth of shares year-to-date.According to provisional NSE data, after three days of selling, FIIs turned net buyers again, investing ₹1,397 crore (1.63 billion) in a single session. However, DIIs sold shares worth ₹589 crore ($68.9 million) during the same session.Between June 23 and June 27, foreign portfolio investors (FPIs) made a net investment of ₹13,107 crore (1.53 billion) into Indian markets, according to the National Securities Depository Limited (NSDL). But this inflow has done little to reverse the broader trend of cautious global sentiment toward Indian equities.<h2>Broader market signals remain tepid</h2>Other indicators also point to dwindling enthusiasm. The Indian rupee has declined slightly against the US dollar this quarter, one of the few Asian currencies to do so. Additionally, overseas investors have pulled out ₹3,400 crore (almost $4 billion) from Indian index-eligible bonds since April.As the first half of 2025 comes to a close, India’s equity market remains one of Asia’s most expensive, and unless earnings accelerate or global risk appetite swings back in its favour, the rally may have run its course, for now.

Foreign investors turn cautious amid better prospects in China, subdued exposure to AI also pushed global investors to reallocate capital to more promising Asian markets.

India’s red-hot $5.4 trillion stock market is showing signs of fatigue as high valuations, slowing earnings growth, and limited exposure to emerging themes like artificial intelligence (AI) cause global investors to reallocate capital to more promising Asian markets. While the country’s relatively insulated economy helped its equity markets emerge as a safe haven during global turmoil triggered by US President Donald Trump’s tariff hikes in April, the easing of those trade concerns has reduced India’s appeal. The MSCI India Index, which is up 6.6 per cent, is now trailing the broader MSCI Asia Pacific Index by nearly six percentage points for 2025 so far. “This is not the year for India,” Amol Gogate, emerging markets fund manager at Carmignac, London, told Bloomberg. “India doesn’t have a lot going for it compared with other markets such as China.” Valuations stretch investor patience One of the key headwinds is valuation. The MSCI India Index is currently trading at nearly 23 times its estimated earnings, one of the highest in the world and well above its five-year average of 21.5. Meanwhile, expected earnings growth from Indian corporates is now lagging behind regional peers such as South Korea and Taiwan. Jian Shi Cortesi, a fund manager at GAM Investment Management in Zurich, told Bloomberg that, “We don’t have an overweight allocation to India, and that’s mainly because of valuations… We like the country for its longer-term potential, but right now valuation is even more stretched than in the past.” The high premium attached to Indian stocks stands in contrast to the recent rally in Hong Kong-listed Chinese equities, which have surged 20 per cent this year on the back of AI breakthroughs and fresh listings. India, by comparison, offers limited access to the AI boom that global investors are keen to ride. Still, some fund managers remain optimistic about the country’s long-term trajectory. Foreign fund outflows highlight sentiment shift Despite a resilient domestic economy, foreign investor sentiment has become increasingly volatile. So far in 2025, foreign institutional investors (FIIs) have offloaded nearly $13 billion (about ₹1.12 lakh crore) worth of Indian equities, putting the market on course for its second consecutive year of outflows, based on data compiled by Bloomberg since 1999. In contrast, domestic institutional investors (DIIs) have stepped in to support the market, net purchasing ₹3.43 lakh crore ($40 billion) worth of shares year-to-date. According to provisional NSE data, after three days of selling, FIIs turned net buyers again, investing ₹1,397 crore (1.63 billion) in a single session. However, DIIs sold shares worth ₹589 crore ($68.9 million) during the same session. Between June 23 and June 27, foreign portfolio investors (FPIs) made a net investment of ₹13,107 crore (1.53 billion) into Indian markets, according to the National Securities Depository Limited (NSDL). But this inflow has done little to reverse the broader trend of cautious global sentiment toward Indian equities. Broader market signals remain tepid Other indicators also point to dwindling enthusiasm. The Indian rupee has declined slightly against the US dollar this quarter, one of the few Asian currencies to do so. Additionally, overseas investors have pulled out ₹3,400 crore (almost $4 billion) from Indian index-eligible bonds since April. As the first half of 2025 comes to a close, India’s equity market remains one of Asia’s most expensive, and unless earnings accelerate or global risk appetite swings back in its favour, the rally may have run its course, for now.

Foreign investors turn cautious amid better prospects in China, subdued exposure to AI also pushed global investors to reallocate capital to more promising Asian markets.

India’s $5.4 trillion market loses momentum as valuation concerns rise

The US Federal Reserve announced on June 27 that all 22 of the nation’s largest banks have passed its 2025 stress tests, clearing the way for potential dividend hikes and stock buybacks. The results indicate that the financial system remains resilient, even under a hypothetical severe economic downturn, though the Fed's scenario this year was notably less severe than in 2024. “Large banks remain well capitalised and resilient to a range of severe outcomes,” said Michelle W. Bowman, the Fed’s Vice Chair for Supervision and a recent appointee by President Donald Trump.The annual exam tested how banks would perform under a hypothetical global recession marked by a 30 per cent plunge in commercial real estate prices, a 33 per cent drop in home prices, and a spike in unemployment to 10 per cent. Despite projected losses of over $550 billion, including $158 billion from credit card defaults and $124 billion in commercial loan losses, all banks remained above regulatory minimum capital requirements.The average common equity tier 1 (CET1) capital ratio dropped 1.8 percentage points under the stress scenario but still held strong at 11.6 per cent, more than double the minimum requirement of 4.5 per cent. Leading performers included JPMorgan Chase, which retained a 14.2 per cent capital ratio, and Charles Schwab, which posted the highest at 32.7 per cent. BMO’s US operations recorded the lowest, at 7.8 per cent, though still well above the regulatory floor.<h2>Less intense test draws scrutiny</h2>Compared to 2024, this year’s test scenario was milder, with less dramatic declines in asset prices and economic indicators. Last year’s test included a 40 per cent drop in commercial real estate, a 36 per cent fall in housing, and a 55 per cent plunge in stock prices. The more lenient approach prompted questions from analysts and policymakers, particularly around the lack of testing for private credit, a rapidly growing $2 trillion asset class that some researchers have flagged as a potential systemic risk.The Fed defended the change by citing “unintended volatility” in prior results and said it plans to solicit public feedback and make future stress test models and scenarios more transparent.In April, the Fed also proposed averaging results over two years to smooth capital requirement volatility. If adopted, this year’s results would be averaged with 2024’s, raising the projected capital decline to 2.3 percentage points.<h2>Dividend and buyback plans coming soon</h2>With the positive results, banks are now free to announce their capital distribution plans, likely starting next week. Analysts expect an uptick in share buybacks, which have already led to a 3 per cent drop in outstanding shares over the past five quarters among tested banks.While the Fed’s results are reassuring, some analysts warn that more rigorous testing may be needed in future years to fully assess vulnerabilities in an evolving financial landscape.

All 22 major banks have passed the Federal Reserve's 2025 stress tests; lighter test raises questions amid growing geopolitical and economic uncertainties.

The US Federal Reserve announced on June 27 that all 22 of the nation’s largest banks have passed its 2025 stress tests, clearing the way for potential dividend hikes and stock buybacks. The results indicate that the financial system remains resilient, even under a hypothetical severe economic downturn, though the Fed's scenario this year was notably less severe than in 2024. “Large banks remain well capitalised and resilient to a range of severe outcomes,” said Michelle W. Bowman, the Fed’s Vice Chair for Supervision and a recent appointee by President Donald Trump. The annual exam tested how banks would perform under a hypothetical global recession marked by a 30 per cent plunge in commercial real estate prices, a 33 per cent drop in home prices, and a spike in unemployment to 10 per cent. Despite projected losses of over $550 billion, including $158 billion from credit card defaults and $124 billion in commercial loan losses, all banks remained above regulatory minimum capital requirements. The average common equity tier 1 (CET1) capital ratio dropped 1.8 percentage points under the stress scenario but still held strong at 11.6 per cent, more than double the minimum requirement of 4.5 per cent. Leading performers included JPMorgan Chase, which retained a 14.2 per cent capital ratio, and Charles Schwab, which posted the highest at 32.7 per cent. BMO’s US operations recorded the lowest, at 7.8 per cent, though still well above the regulatory floor. Less intense test draws scrutiny Compared to 2024, this year’s test scenario was milder, with less dramatic declines in asset prices and economic indicators. Last year’s test included a 40 per cent drop in commercial real estate, a 36 per cent fall in housing, and a 55 per cent plunge in stock prices. The more lenient approach prompted questions from analysts and policymakers, particularly around the lack of testing for private credit, a rapidly growing $2 trillion asset class that some researchers have flagged as a potential systemic risk. The Fed defended the change by citing “unintended volatility” in prior results and said it plans to solicit public feedback and make future stress test models and scenarios more transparent. In April, the Fed also proposed averaging results over two years to smooth capital requirement volatility. If adopted, this year’s results would be averaged with 2024’s, raising the projected capital decline to 2.3 percentage points. Dividend and buyback plans coming soon With the positive results, banks are now free to announce their capital distribution plans, likely starting next week. Analysts expect an uptick in share buybacks, which have already led to a 3 per cent drop in outstanding shares over the past five quarters among tested banks. While the Fed’s results are reassuring, some analysts warn that more rigorous testing may be needed in future years to fully assess vulnerabilities in an evolving financial landscape.

All 22 major banks have passed the Federal Reserve's 2025 stress tests; lighter test raises questions amid growing geopolitical and economic uncertainties.

Fed says big banks can withstand recession, clears path for shareholder payouts

The US Securities and Exchange Commission (SEC) informed a federal court in New York on June 27 that billionaire Gautam Adani and his nephew Sagar Adani are yet to be officially served legal summons in a civil securities fraud case filed last year. In a status report, seen by Wion, the SEC said it is continuing its efforts to serve the summons and complaint to the Adanis under the Hague Service Convention. The SEC’s letter to the court stated, “Since the April status update, the SEC has corresponded with the India MOLJ (Ministry of Law and Justice) concerning the efforts of the relevant Indian judicial authorities to serve the summons and complaint on defendants.”It added, “Defendants are located in India, and the SEC’s efforts to serve them are ongoing, including a request for assistance from Indian authorities to effect service under the Hague Service Convention for Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters.” However, the SEC clarified that the Indian authorities have not yet served the legal notices to Gautam Adani and Sagar Adani.The US regulator also noted that it lacks the authority to directly summon foreign individuals, such as the Adanis, and must rely on diplomatic channels under the Hague Convention. The SEC also confirmed it will file its next update on the matter with the court by August 11.<h2>The case background</h2>The case involves an alleged $265 million payoff to secure lucrative renewable energy contracts. The complaint, originally filed on November 20, 2024, alleges that Goutam and Sagar Adani violated United States securities laws by providing misleading and fraudulent information related to Adani Green Energy’s bond sale to American investors in September 2021.The SEC’s filing also referenced Rule 4(f) of the Federal Rules of Civil Procedure, which governs service in foreign jurisdictions. This rule, along with international treaties like the Hague Convention, allows ongoing efforts without a precise deadline for serving foreign nationals, as long as reasonable attempts are being made.

SEC noted that it lacks the authority to directly summon foreign individuals, such as the Adanis, and must rely on diplomatic channels under the Hague Convention.

The US Securities and Exchange Commission (SEC) informed a federal court in New York on June 27 that billionaire Gautam Adani and his nephew Sagar Adani are yet to be officially served legal summons in a civil securities fraud case filed last year. In a status report, seen by Wion, the SEC said it is continuing its efforts to serve the summons and complaint to the Adanis under the Hague Service Convention. The SEC’s letter to the court stated, “Since the April status update, the SEC has corresponded with the India MOLJ (Ministry of Law and Justice) concerning the efforts of the relevant Indian judicial authorities to serve the summons and complaint on defendants.” It added, “Defendants are located in India, and the SEC’s efforts to serve them are ongoing, including a request for assistance from Indian authorities to effect service under the Hague Service Convention for Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters.” However, the SEC clarified that the Indian authorities have not yet served the legal notices to Gautam Adani and Sagar Adani. The US regulator also noted that it lacks the authority to directly summon foreign individuals, such as the Adanis, and must rely on diplomatic channels under the Hague Convention. The SEC also confirmed it will file its next update on the matter with the court by August 11. The case background The case involves an alleged $265 million payoff to secure lucrative renewable energy contracts. The complaint, originally filed on November 20, 2024, alleges that Goutam and Sagar Adani violated United States securities laws by providing misleading and fraudulent information related to Adani Green Energy’s bond sale to American investors in September 2021. The SEC’s filing also referenced Rule 4(f) of the Federal Rules of Civil Procedure, which governs service in foreign jurisdictions. This rule, along with international treaties like the Hague Convention, allows ongoing efforts without a precise deadline for serving foreign nationals, as long as reasonable attempts are being made.

SEC noted that it lacks the authority to directly summon foreign individuals, such as the Adanis, and must rely on diplomatic channels under the Hague Convention.

Gautam Adani yet to be served summons in bribery case, SEC tells US court

Elon Musk launched a fresh wave of criticism against President Donald Trump’s sweeping tax and spending legislation on June 28, calling the Senate’s revised 940-page bill “utterly insane and destructive”. The Tesla and SpaceX CEO warned that the legislation would lead to “immense strategic harm” and cost millions of American jobs. “The latest Senate draft bill will destroy millions of jobs in America and cause immense strategic harm to our country!” Musk wrote on X. “It gives handouts to industries of the past while severely damaging industries of the future.”The Senate is working through the weekend in a race against time, as Republicans aim to pass the bill before Trump’s self-imposed Independence Day deadline. The newly released 940-page draft includes significant changes from the House version passed last month by a single vote. In a bid to satisfy budget rules and shore up wavering GOP (Grand Old Party) support, the updated bill features steeper cuts to Medicaid, reworked tax provisions, and modified timelines for phasing out clean energy subsidies.A central criticism of the bill, including from some Republicans, is its projected $3 trillion increase to the federal deficit over the next decade, as estimated by the Congressional Budget Office (CBO). While the GOP holds a majority in both chambers, the bill has sparked internal divisions, particularly over its deep spending cuts and subsidies for fossil fuel sectors, including a new credit for coal used in steel production.<h2>Musk’s energy interests in the crosshairs</h2>Musk’s criticism highlights the bill’s potential blow to clean energy sectors. The legislation includes provisions that would raise taxes on solar, battery, wind, geothermal, and nuclear energy projects, areas central to Tesla’s energy business. He warned that the bill would undermine America’s future industries while artificially propping up outdated sectors like coal.One controversial inclusion: a subsidy for coal used in steel production. Simultaneously, the Senate version proposes a gradual rollback of clean energy tax credits, offering reduced incentives through 2027 before eliminating them entirely in 2028.Tesla produces battery storage systems and solar photovoltaic solutions, and Musk warned the bill could cripple innovation just as global demand for clean tech is growing. “This is political suicide for the Republican Party,” he later added, warning of long-term consequences.<h2>A feud rekindled</h2>Musk’s remarks come just weeks after a public fallout with President Trump, sparked by the tech magnate’s earlier denunciation of the bill as a “disgusting abomination”. Musk, a major GOP donor who once led the now-defunct Department of Government Efficiency (DOGE), briefly reconciled with Trump after walking back some of his harsher posts.However, the comments suggest renewed tensions. Musk previously threatened to withhold political donations and called out lawmakers who supported the legislation, accusing them of betraying the American public.In a particularly heated exchange earlier this month, Musk insinuated Trump was connected to disgraced financier Jeffrey Epstein, an allegation made without evidence. While both parties had attempted to move past the dispute, it remains unclear whether Musk’s latest broadside will rupture the uneasy peace.<h2>What else is inside the new draft?</h2>The latest version includes a swathe of policy changes designed to appease various GOP factions:Social security tax breaks: The Senate bill enhances tax deductions for seniors, raising the amount from $4,000 (in the House version) to $6,000. However, these benefits taper off for higher-income individuals.Medicaid overhaul: The Senate draft imposes the strictest-ever work requirements on enrollees, including adults with children aged 15 and over. It also reduces provider taxes from 6 per cent to 3.5 per cent by 2031, although a $25 billion rural hospital fund was added to placate critics.SNAP restrictions: The Supplemental Nutrition Assistance Program (food stamps) would see new work requirements for childless, able-bodied adults, and states would be required to contribute more funding.Overtime and tips tax relief: The Senate version retains the House’s promise to eliminate taxes on overtime pay and tips—a key Trump campaign pledge—but phases out the benefit for individuals earning over $150,000.Child tax credit: The Senate proposes a permanent increase to $2,200 (versus $2,500 in the House bill) and lowers eligibility thresholds by requiring only one parent to have a Social Security number.State and local tax (SALT) cap: To win over moderates, the cap on SALT deductions would rise from $10,000 to $40,000 for joint filers under $500,000 income, but only until 2030.<h2>Activist backlash</h2>Tesla shares fell 14 per cent following Musk’s initial attacks on the bill, as Trump hinted at reconsidering government contracts involving Musk’s companies. Meanwhile, activist groups organised “anti-celebration” protests on Musk’s 54th birthday, condemning his links to the Trump administration and far-right political elements in Europe.Democrats, though largely sidelined in the process, have lambasted the bill. House Minority Leader Hakeem Jeffries labelled it a “reckless, regressive and reprehensible GOP tax scam” and vowed to use it as campaign fodder in next year’s midterms.Trump, meanwhile, has taken to social media to push for swift passage: “It’s time for our friends in the United States Senate to get to work and send this bill to my desk as soon as possible!”

Elon Musk says GOP megabill will destroy jobs and hurt innovation as the legislation proposes provisions that would raise taxes on solar, battery, wind, geothermal, and nuclear energy projects.

Elon Musk launched a fresh wave of criticism against President Donald Trump’s sweeping tax and spending legislation on June 28, calling the Senate’s revised 940-page bill “utterly insane and destructive”. The Tesla and SpaceX CEO warned that the legislation would lead to “immense strategic harm” and cost millions of American jobs. “The latest Senate draft bill will destroy millions of jobs in America and cause immense strategic harm to our country!” Musk wrote on X. “It gives handouts to industries of the past while severely damaging industries of the future.” The Senate is working through the weekend in a race against time, as Republicans aim to pass the bill before Trump’s self-imposed Independence Day deadline. The newly released 940-page draft includes significant changes from the House version passed last month by a single vote. In a bid to satisfy budget rules and shore up wavering GOP (Grand Old Party) support, the updated bill features steeper cuts to Medicaid, reworked tax provisions, and modified timelines for phasing out clean energy subsidies. A central criticism of the bill, including from some Republicans, is its projected $3 trillion increase to the federal deficit over the next decade, as estimated by the Congressional Budget Office (CBO). While the GOP holds a majority in both chambers, the bill has sparked internal divisions, particularly over its deep spending cuts and subsidies for fossil fuel sectors, including a new credit for coal used in steel production. Musk’s energy interests in the crosshairs Musk’s criticism highlights the bill’s potential blow to clean energy sectors. The legislation includes provisions that would raise taxes on solar, battery, wind, geothermal, and nuclear energy projects, areas central to Tesla’s energy business. He warned that the bill would undermine America’s future industries while artificially propping up outdated sectors like coal. One controversial inclusion: a subsidy for coal used in steel production. Simultaneously, the Senate version proposes a gradual rollback of clean energy tax credits, offering reduced incentives through 2027 before eliminating them entirely in 2028. Tesla produces battery storage systems and solar photovoltaic solutions, and Musk warned the bill could cripple innovation just as global demand for clean tech is growing. “This is political suicide for the Republican Party,” he later added, warning of long-term consequences. A feud rekindled Musk’s remarks come just weeks after a public fallout with President Trump, sparked by the tech magnate’s earlier denunciation of the bill as a “disgusting abomination”. Musk, a major GOP donor who once led the now-defunct Department of Government Efficiency (DOGE), briefly reconciled with Trump after walking back some of his harsher posts. However, the comments suggest renewed tensions. Musk previously threatened to withhold political donations and called out lawmakers who supported the legislation, accusing them of betraying the American public. In a particularly heated exchange earlier this month, Musk insinuated Trump was connected to disgraced financier Jeffrey Epstein, an allegation made without evidence. While both parties had attempted to move past the dispute, it remains unclear whether Musk’s latest broadside will rupture the uneasy peace. What else is inside the new draft? The latest version includes a swathe of policy changes designed to appease various GOP factions: Social security tax breaks: The Senate bill enhances tax deductions for seniors, raising the amount from $4,000 (in the House version) to $6,000. However, these benefits taper off for higher-income individuals. Medicaid overhaul: The Senate draft imposes the strictest-ever work requirements on enrollees, including adults with children aged 15 and over. It also reduces provider taxes from 6 per cent to 3.5 per cent by 2031, although a $25 billion rural hospital fund was added to placate critics. SNAP restrictions: The Supplemental Nutrition Assistance Program (food stamps) would see new work requirements for childless, able-bodied adults, and states would be required to contribute more funding. Overtime and tips tax relief: The Senate version retains the House’s promise to eliminate taxes on overtime pay and tips—a key Trump campaign pledge—but phases out the benefit for individuals earning over $150,000. Child tax credit: The Senate proposes a permanent increase to $2,200 (versus $2,500 in the House bill) and lowers eligibility thresholds by requiring only one parent to have a Social Security number. State and local tax (SALT) cap: To win over moderates, the cap on SALT deductions would rise from $10,000 to $40,000 for joint filers under $500,000 income, but only until 2030. Activist backlash Tesla shares fell 14 per cent following Musk’s initial attacks on the bill, as Trump hinted at reconsidering government contracts involving Musk’s companies. Meanwhile, activist groups organised “anti-celebration” protests on Musk’s 54th birthday, condemning his links to the Trump administration and far-right political elements in Europe. Democrats, though largely sidelined in the process, have lambasted the bill. House Minority Leader Hakeem Jeffries labelled it a “reckless, regressive and reprehensible GOP tax scam” and vowed to use it as campaign fodder in next year’s midterms. Trump, meanwhile, has taken to social media to push for swift passage: “It’s time for our friends in the United States Senate to get to work and send this bill to my desk as soon as possible!”

Elon Musk says GOP megabill will destroy jobs and hurt innovation as the legislation proposes provisions that would raise taxes on solar, battery, wind, geothermal, and nuclear energy projects.

Elon Musk slams Trump’s ‘Big, Beautiful Bill’ as Senate vote nears

China is expanding its compensation system for residents forced to give up homes and farms to flood diversion schemes, as extreme rainfall continues to displace communities and damage critical infrastructure. The move, announced late on Friday, comes amid growing public anger over the government’s practice of diverting swollen rivers into designated storage zones that often include populated farmland and residential areas.&nbsp;&nbsp;According to Reuters, new rules from China’s State Council will see the central government cover 70 per cent of compensation payments, up from a previous formula based on local finances and actual losses “Importantly, livestock and poultry that cannot be relocated before flooding will now also qualify for compensation,” Reuters reported, noting that previously only working animals were covered.<h2>Anger over forced flood storage</h2>Flood diversion zones are a critical part of China’s strategy to protect cities from catastrophic flooding by sacrificing rural and agricultural land. As extreme rainfall events become more frequent, Beijing has used these areas more aggressively, fuelling resentment. During record-breaking rains in the summer of 2023, nearly 1 million people were relocated in Hebei province to make way for diverted floodwaters aimed at protecting Beijing.&nbsp;According to Xinhua, eight designated flood storage areas were used in Hebei alone during that crisis. China has 98 officially designated flood diversion zones across major river basins, including the Yangtze, which supports over one-third of the nation’s 1.4 billion population.<h2>Record rain and expanding climate threat</h2>The urgency of these measures reflects intensifying climate risks. The China Meteorological Administration said on Friday that since early June, rainfall in the middle and lower reaches of the Yangtze has been up to double historical averages. “Thirty meteorological stations in provinces such as Hubei and Guizhou reported record daily rainfall for June,” according to the agency’s briefing, as cited by Reuters.&nbsp;In Guizhou this week, one city experienced flooding described as a once-in-50-years event. Local media reported that the speed of inundation shocked its 300,000 residents and overwhelmed emergency services. As per CGTN, Beijing has pledged to relocate vulnerable populations and industries to safer zones while allocating more land for flood storage to manage such surges.<h2>Economic toll mounts</h2>The human and financial costs of China’s floods are staggering. According to China’s Ministry of Emergency Management, direct economic losses from extreme rainfall and flooding in 2023 exceeded 110 billion yuan ($15 billion).&nbsp;And the crisis is ongoing. As reported by Xinhua and CGTN in June 2024, cumulative flood-related damage this year has already surpassed 54 billion yuan ($7.5 billion), damaging roads, railways, irrigation networks, homes, and critical infrastructure. These losses underline the immense challenge China faces in balancing the protection of its mega-cities with the needs of rural communities that often serve as buffers in times of crisis.<h2>A social contract under strain</h2>While Beijing’s expanded compensation scheme aims to quell unrest, it also signals the government’s recognition that forced flood diversion is politically and socially sensitive. State media commentary acknowledged that farmers have long complained about insufficient or delayed payments for deliberately flooded lands, and that including livestock losses is a long-overdue reform.&nbsp;Still, experts warn that as extreme weather becomes more common, these trade-offs will test China’s social contract. By relying on rural areas to absorb floodwaters and protect urban centres, China is confronting not just a climate emergency but a deepening question of fairness: who pays the price to keep its cities safe?&nbsp;(With inputs from the agencies) &nbsp;

The urgency is driven by intensified climate risks, with record rainfall causing significant economic losses, exceeding 110 billion yuan in 2023 alone.

China is expanding its compensation system for residents forced to give up homes and farms to flood diversion schemes, as extreme rainfall continues to displace communities and damage critical infrastructure. The move, announced late on Friday, comes amid growing public anger over the government’s practice of diverting swollen rivers into designated storage zones that often include populated farmland and residential areas. According to Reuters, new rules from China’s State Council will see the central government cover 70 per cent of compensation payments, up from a previous formula based on local finances and actual losses “Importantly, livestock and poultry that cannot be relocated before flooding will now also qualify for compensation,” Reuters reported, noting that previously only working animals were covered. Anger over forced flood storage Flood diversion zones are a critical part of China’s strategy to protect cities from catastrophic flooding by sacrificing rural and agricultural land. As extreme rainfall events become more frequent, Beijing has used these areas more aggressively, fuelling resentment. During record-breaking rains in the summer of 2023, nearly 1 million people were relocated in Hebei province to make way for diverted floodwaters aimed at protecting Beijing. According to Xinhua, eight designated flood storage areas were used in Hebei alone during that crisis. China has 98 officially designated flood diversion zones across major river basins, including the Yangtze, which supports over one-third of the nation’s 1.4 billion population. Record rain and expanding climate threat The urgency of these measures reflects intensifying climate risks. The China Meteorological Administration said on Friday that since early June, rainfall in the middle and lower reaches of the Yangtze has been up to double historical averages. “Thirty meteorological stations in provinces such as Hubei and Guizhou reported record daily rainfall for June,” according to the agency’s briefing, as cited by Reuters. In Guizhou this week, one city experienced flooding described as a once-in-50-years event. Local media reported that the speed of inundation shocked its 300,000 residents and overwhelmed emergency services. As per CGTN, Beijing has pledged to relocate vulnerable populations and industries to safer zones while allocating more land for flood storage to manage such surges. Economic toll mounts The human and financial costs of China’s floods are staggering. According to China’s Ministry of Emergency Management, direct economic losses from extreme rainfall and flooding in 2023 exceeded 110 billion yuan ($15 billion). And the crisis is ongoing. As reported by Xinhua and CGTN in June 2024, cumulative flood-related damage this year has already surpassed 54 billion yuan ($7.5 billion), damaging roads, railways, irrigation networks, homes, and critical infrastructure. These losses underline the immense challenge China faces in balancing the protection of its mega-cities with the needs of rural communities that often serve as buffers in times of crisis. A social contract under strain While Beijing’s expanded compensation scheme aims to quell unrest, it also signals the government’s recognition that forced flood diversion is politically and socially sensitive. State media commentary acknowledged that farmers have long complained about insufficient or delayed payments for deliberately flooded lands, and that including livestock losses is a long-overdue reform. Still, experts warn that as extreme weather becomes more common, these trade-offs will test China’s social contract. By relying on rural areas to absorb floodwaters and protect urban centres, China is confronting not just a climate emergency but a deepening question of fairness: who pays the price to keep its cities safe? (With inputs from the agencies)

The State Council will increase central government coverage of compensation payments to 70%, including losses for livestock and poultry not previously covered.

China expands flood compensation as extreme rain triggers social tensions

Global sportswear giant Nike is reportedly bracing for a $1 billion blow from US tariffs on Chinese-made imports, a cost surge it admits will be passed, at least partly, onto customers. The warning this week came as the company unveiled an aggressive turnaround plan: cutting reliance on Chinese factories, refocusing on core sports lines, and clearing bloated inventories.&nbsp;But for sneaker lovers, it means one thing: prices are likely to rise. According to Reuters, Nike told investors that US tariffs have become a “meaningful cost headwind” that will require supply-chain overhauls and selective price increases to protect margins.<h2>Why are the tariffs hitting so hard?</h2>Nike’s warning comes hot on the heels of an important policy decision. In April 2025, the Trump administration completed its required four-year review of the Section 301 tariffs and chose to keep nearly all of them in place indefinitely. As per the Office of the US Trade Representative (USTR) and Reuters reporting, this means the 25 per cent duty on many categories of Chinese-made footwear and apparel remains locked in. This decision ended industry hopes of tariff relief, confirming that brands will continue to pay more to import Chinese-made goods.&nbsp;Nike’s leadership admitted that without any rollback, the company’s tariff burden will stay close to $1 billion over the coming years. “These tariffs aren’t going away,” GlobalData’s Neil Saunders told Reuters. “Brands will either absorb the cost, lower margins, or pass it onto consumers.”<h2>What it means for buyers</h2>For consumers, these changes won’t be invisible. Nike’s CFO Matthew Friend told investors the company plans to “fully mitigate” the extra $1 billion cost. But much of that will come through price increases on popular models.&nbsp;Industry analysts say premium lines like Air Jordan, Dunk, and Air Force 1, which often retail for $100–$200, could see further price hikes, especially for limited editions. Resale markets could also feel the pinch. Higher retail prices often drive up secondary market costs for coveted releases, making sneaker culture even pricier. According to StockX data cited by Reuters and Bloomberg, average resale prices for some Jordan retros and collabs rose 15–20 per cent in 2023 alone as demand outpaced supply.<h2>Inventory purge and supply realignment</h2>Nike’s earnings call this week revealed other headaches: North American sales down, China sales down over 20 per cent, and excess inventory in lifestyle lines. Nike has been discounting heavily to clear stock of Air Force 1s and Dunks, with analysts noting that it’s aiming for a “clean” inventory position by the first half of fiscal 2026.&nbsp;Reuters reported that CEO Elliott Hill’s strategy is to “rightsize” these iconic franchises while doubling down on core sports performance, like running, basketball, and football boots.<h2>The broader sneaker market impact</h2>Nike’s sourcing pivot reflects an industry-wide retreat from China. According to the Footwear Distributors and Retailers of America (FDRA), US brands have reduced China’s share of footwear imports from 70 per cent in 2010 to under 50 per cent in 2023.Vietnam now accounts for over 30 per cent of US imports, while Indonesia has also surged. But production costs in these alternative hubs are rising too. As per FDRA analysis, average landed costs per pair have increased 5–10 per cent over the past two years in Vietnam and Indonesia, meaning savings aren’t guaranteed.&nbsp;For buyers, this means brands will struggle to keep prices stable, especially for classic models that rely on familiar supply chains and materials.<h2>A fragile recovery</h2>Despite the challenges, investors cheered Nike’s turnaround plan. Shares jumped over 13 per cent on Friday, their best one-day rally in years. Analysts praised Hill’s renewed focus on athletes and sports performance. The company also confirmed it’s returning to a multi-channel sales approach, including selling on Amazon again after a six-year break.&nbsp;Reuters noted that at least 11 brokerages upgraded their price targets for Nike stock, with HSBC moving to a “buy” rating. But the underlying message was clear: Trump-era tariffs are here to stay, and big brands will pass on the costs.“For sneaker lovers, it’s a warning that the days of cheap, China-made Jordans flooding US shelves are fading fast,” said Neil Saunders, managing director at GlobalData, as quoted by Reuters.<h2>The road ahead</h2>Nike’s bet is that even with higher prices, loyal buyers will pay for quality, brand heritage, and innovative performance. Company filings show Nike still commands over 25 per cent of the global sportswear market, far ahead of rivals Adidas and Puma.&nbsp;But as tariffs linger and supply chains shift, one thing is certain: the cost of being a sneakerhead may keep climbing.&nbsp;(With inputs from the agencies) &nbsp;

As North American sales decline and excess inventory looms, Nike aims for a cleaner inventory by fiscal 2026 while pivoting sourcing away from China to rising costs in Vietnam and Indonesia. 

Global sportswear giant Nike is reportedly bracing for a $1 billion blow from US tariffs on Chinese-made imports, a cost surge it admits will be passed, at least partly, onto customers. The warning this week came as the company unveiled an aggressive turnaround plan: cutting reliance on Chinese factories, refocusing on core sports lines, and clearing bloated inventories. But for sneaker lovers, it means one thing: prices are likely to rise. According to Reuters, Nike told investors that US tariffs have become a “meaningful cost headwind” that will require supply-chain overhauls and selective price increases to protect margins. Why are the tariffs hitting so hard? Nike’s warning comes hot on the heels of an important policy decision. In April 2025, the Trump administration completed its required four-year review of the Section 301 tariffs and chose to keep nearly all of them in place indefinitely. As per the Office of the US Trade Representative (USTR) and Reuters reporting, this means the 25 per cent duty on many categories of Chinese-made footwear and apparel remains locked in. This decision ended industry hopes of tariff relief, confirming that brands will continue to pay more to import Chinese-made goods. Nike’s leadership admitted that without any rollback, the company’s tariff burden will stay close to $1 billion over the coming years. “These tariffs aren’t going away,” GlobalData’s Neil Saunders told Reuters. “Brands will either absorb the cost, lower margins, or pass it onto consumers.” What it means for buyers For consumers, these changes won’t be invisible. Nike’s CFO Matthew Friend told investors the company plans to “fully mitigate” the extra $1 billion cost. But much of that will come through price increases on popular models. Industry analysts say premium lines like Air Jordan, Dunk, and Air Force 1, which often retail for $100–$200, could see further price hikes, especially for limited editions. Resale markets could also feel the pinch. Higher retail prices often drive up secondary market costs for coveted releases, making sneaker culture even pricier. According to StockX data cited by Reuters and Bloomberg, average resale prices for some Jordan retros and collabs rose 15–20 per cent in 2023 alone as demand outpaced supply. Inventory purge and supply realignment Nike’s earnings call this week revealed other headaches: North American sales down, China sales down over 20 per cent, and excess inventory in lifestyle lines. Nike has been discounting heavily to clear stock of Air Force 1s and Dunks, with analysts noting that it’s aiming for a “clean” inventory position by the first half of fiscal 2026. Reuters reported that CEO Elliott Hill’s strategy is to “rightsize” these iconic franchises while doubling down on core sports performance, like running, basketball, and football boots. The broader sneaker market impact Nike’s sourcing pivot reflects an industry-wide retreat from China. According to the Footwear Distributors and Retailers of America (FDRA), US brands have reduced China’s share of footwear imports from 70 per cent in 2010 to under 50 per cent in 2023. Vietnam now accounts for over 30 per cent of US imports, while Indonesia has also surged. But production costs in these alternative hubs are rising too. As per FDRA analysis, average landed costs per pair have increased 5–10 per cent over the past two years in Vietnam and Indonesia, meaning savings aren’t guaranteed. For buyers, this means brands will struggle to keep prices stable, especially for classic models that rely on familiar supply chains and materials. A fragile recovery Despite the challenges, investors cheered Nike’s turnaround plan. Shares jumped over 13 per cent on Friday, their best one-day rally in years. Analysts praised Hill’s renewed focus on athletes and sports performance. The company also confirmed it’s returning to a multi-channel sales approach, including selling on Amazon again after a six-year break. Reuters noted that at least 11 brokerages upgraded their price targets for Nike stock, with HSBC moving to a “buy” rating. But the underlying message was clear: Trump-era tariffs are here to stay, and big brands will pass on the costs. “For sneaker lovers, it’s a warning that the days of cheap, China-made Jordans flooding US shelves are fading fast,” said Neil Saunders, managing director at GlobalData, as quoted by Reuters. The road ahead Nike’s bet is that even with higher prices, loyal buyers will pay for quality, brand heritage, and innovative performance. Company filings show Nike still commands over 25 per cent of the global sportswear market, far ahead of rivals Adidas and Puma. But as tariffs linger and supply chains shift, one thing is certain: the cost of being a sneakerhead may keep climbing. (With inputs from the agencies)

Nike faces a $1 billion impact from US tariffs on Chinese imports, likely passing costs to consumers as part of its restructuring plan to cut reliance on Chinese factories and refocus on core sports lines.

Will Trump-era tariffs make your next pair of Nikes more expensive?

Meta is under fresh pressure from European regulators. The European Commission has warned the company it could face daily fines if its advertising model doesn’t meet tough new EU rules.&nbsp;The warning came on Friday, just two months after the Commission fined Meta 200 million euros ($234 million) for breaking the EU’s Digital Markets Act, or DMA. As per Reuters, the rules aim to stop Big Tech from abusing its power and to protect smaller rivals.<h2>How Meta’s 'pay-or-consent' model works</h2>Meta launched its “pay-or-consent” model in November 2023. It gives Facebook and Instagram users two options:<ul><li>Use the service for free but agree to be tracked for targeted ads.</li><li>Or pay for an ad-free experience.</li></ul>According to Reuters, the European Commission said this setup broke the DMA’s rules until November 2024, even after Meta changed it to use less personal data for advertising. A spokesperson for the Commission said it’s not clear if Meta’s latest changes are good enough. “The Commission cannot confirm at this stage if these are sufficient,” the spokesperson told Reuters.<h2>EU fine warning&nbsp;</h2>The European Commission also warned Meta that if it doesn’t comply, it could face daily fines starting 27 June 2025. As per Reuters, these fines could reach up to 5 per cent of Meta’s average daily worldwide turnover for each day it stays in violation.&nbsp;That’s a major threat for one of the world’s biggest and most profitable tech companies.<h2>'Unfair': Meta responds to EU&nbsp;</h2>Meta strongly pushed back against the warning. “A user choice between a subscription for no ads or a free ad-supported service remains a legitimate business model for every company in Europe—except Meta,” a Meta spokesperson told Reuters.&nbsp;Meta insists it is doing even more than what EU rules demand. “We are confident that the range of choices we offer people in the EU doesn’t just comply with what the EU’s rules require—it goes well beyond them,” the spokesperson told Reuters.<h2>EU rejects Meta’s complaint</h2>But the European Commission dismissed Meta’s accusations of unfair treatment. According to Reuters, officials said the DMA applies equally to all large digital companies, no matter where they’re based or who owns them.&nbsp;“We have always enforced and will continue to enforce our laws fairly and without discrimination towards all companies operating in the EU,” the spokesperson said.<h2>A key test for Big Tech rules</h2>This battle highlights how serious the EU is about reining in Big Tech. The DMA, which took effect in March, forces large platforms to follow strict rules designed to stop them from crushing smaller competitors.&nbsp;Meta’s pay-or-consent model is one of the first big tests of these new rules. As per Reuters, the outcome will help define how tech giants will have to operate in Europe in the coming years.&nbsp;(With inputs from the agencies)&nbsp;

Following a €200 million fine for breaching the Digital Markets Act, the Commission stated Meta pay-or-consent model may still violate rules until November 2024. 

Meta is under fresh pressure from European regulators. The European Commission has warned the company it could face daily fines if its advertising model doesn’t meet tough new EU rules. The warning came on Friday, just two months after the Commission fined Meta 200 million euros ($234 million) for breaking the EU’s Digital Markets Act, or DMA. As per Reuters, the rules aim to stop Big Tech from abusing its power and to protect smaller rivals. How Meta’s 'pay-or-consent' model works Meta launched its “pay-or-consent” model in November 2023. It gives Facebook and Instagram users two options: Use the service for free but agree to be tracked for targeted ads. Or pay for an ad-free experience. According to Reuters, the European Commission said this setup broke the DMA’s rules until November 2024, even after Meta changed it to use less personal data for advertising. A spokesperson for the Commission said it’s not clear if Meta’s latest changes are good enough. “The Commission cannot confirm at this stage if these are sufficient,” the spokesperson told Reuters. EU fine warning The European Commission also warned Meta that if it doesn’t comply, it could face daily fines starting 27 June 2025. As per Reuters, these fines could reach up to 5 per cent of Meta’s average daily worldwide turnover for each day it stays in violation. That’s a major threat for one of the world’s biggest and most profitable tech companies. 'Unfair': Meta responds to EU Meta strongly pushed back against the warning. “A user choice between a subscription for no ads or a free ad-supported service remains a legitimate business model for every company in Europe—except Meta,” a Meta spokesperson told Reuters. Meta insists it is doing even more than what EU rules demand. “We are confident that the range of choices we offer people in the EU doesn’t just comply with what the EU’s rules require—it goes well beyond them,” the spokesperson told Reuters. EU rejects Meta’s complaint But the European Commission dismissed Meta’s accusations of unfair treatment. According to Reuters, officials said the DMA applies equally to all large digital companies, no matter where they’re based or who owns them. “We have always enforced and will continue to enforce our laws fairly and without discrimination towards all companies operating in the EU,” the spokesperson said. A key test for Big Tech rules This battle highlights how serious the EU is about reining in Big Tech. The DMA, which took effect in March, forces large platforms to follow strict rules designed to stop them from crushing smaller competitors. Meta’s pay-or-consent model is one of the first big tests of these new rules. As per Reuters, the outcome will help define how tech giants will have to operate in Europe in the coming years. (With inputs from the agencies)

Meta faces new pressure from European regulators as the European Commission warns of potential daily fines if its advertising model fails to comply with EU regulations.

Meta faces threat of daily EU fines over pay-or-consent model: Details here

India has tightened restrictions on imports of Bangladeshi jute products and woven fabrics through all land borders, in a move that underscores deepening diplomatic tensions between the neighbours. According to a notification issued by India’s Directorate General of Foreign Trade (DGFT) on Friday, these products will now be permitted entry only via the Nhava Sheva seaport in Maharashtra. “Import from Bangladesh shall not be allowed from any land port on the India-Bangladesh border. However, it is allowed only through the Nhava Sheva Seaport,” the DGFT order said.&nbsp;The restriction, which took effect immediately, applies to a wide range of jute products including flax tow and waste, bast fibres, single flax and jute yarn, multiple folded woven fabrics, and unbleached jute fabrics. Notably, the DGFT clarified that the ban does not affect Bangladesh’s exports to Nepal or Bhutan transiting through India. However, re-export of these goods from Nepal or Bhutan into India is explicitly barred. This is the latest in a series of trade barriers India has imposed on Bangladesh in recent months, signalling a chilling of what has often been described as a model bilateral relationship in South Asia.<h2>Earlier curbs deepen friction</h2>Friday’s decision follows two recent moves targeting Bangladeshi trade. On April 9, India withdrew a transhipment facility it had granted to Bangladesh for shipping goods to the Middle East, Europe, and other destinations, except for Nepal and Bhutan, as reported by The Hindu BusinessLine.&nbsp;Again, on May 17, India reportedly imposed port restrictions on the import of Bangladeshi goods such as readymade garments and processed food items. These measures are widely seen as retaliation against controversial remarks made by Muhammad Yunus, head of Bangladesh’s interim government, during a recent speech in China. Yunus reportedly described India’s northeastern states as a “landlocked region with no access to the ocean,” a comment viewed in New Delhi as an attempt to undermine the region’s connectivity initiatives, including access to Bangladesh’s Chittagong Port.<h2>India–Bangladesh trade dependency&nbsp;</h2>Despite the tensions, trade between India and Bangladesh has been expanding. According to India’s Ministry of Commerce data, bilateral trade stood at approximately $14 billion in 2022–23. India exported goods worth over $11.2 billion to Bangladesh while importing around $2.8 billion, making Bangladesh India’s largest trade partner in South Asia but with a significant trade imbalance.&nbsp;Major Indian exports to Bangladesh reportedly include cotton, vehicles, fuel, cereals, and machinery. Bangladesh’s top exports to India include ready-made garments, jute products, and processed foods. As per Bangladesh Bank figures cited by The Daily Star, Bangladesh relies heavily on India for essential commodities, especially during periods of global supply shocks.<h2>Jute trade and employment stakes</h2>Jute is a critical sector for Bangladesh, employing millions of farmers and factory workers. According to Bangladesh Jute Mills Corporation (BJMC) estimates, over 3 million people in Bangladesh depend directly or indirectly on the jute industry. India has historically been the largest market for Bangladeshi jute goods, though it has frequently resorted to anti-dumping duties and quotas to protect domestic producers.&nbsp;Friday’s restrictions on land routes will raise costs for Bangladeshi exporters, who now face the longer and more expensive seaborne route to Nhava Sheva port, potentially squeezing profit margins and affecting employment.<h2>The Ganga Waters Treaty in focus</h2>Adding another layer of tension is India is reportedly considering reviewing the 1996 Ganga Waters Treaty as its expiry approaches in 2026.The treaty, signed by then-Prime Ministers H.D. Deve Gowda and Sheikh Hasina, allocates the dry-season flow of the Ganga at Farakka Barrage between the two countries. It guarantees Bangladesh a share of 35,000 cubic feet per second (cusecs) on average during the critical lean season (January to May), though the actual allocation depends on flow levels.&nbsp;According to the treaty text (Government of India, Ministry of Jal Shakti), water sharing is divided in 10-day periods, with provisions for arbitration and joint monitoring. For Bangladesh, the Ganga’s lean-season flow is vital for irrigation, drinking water, and navigation in the southwest, where salinity intrusion from the Bay of Bengal is a severe threat.&nbsp;As quoted by Reuters, Bangladesh has repeatedly expressed concerns that upstream diversions in India have reduced the promised flows, hurting agriculture and drinking water supplies. India, on the other hand, argues that rising demand in West Bengal and Bihar, as well as variable rainfall, complicate full compliance in dry years. Negotiations on renewing the treaty were already expected to be delicate. Recent diplomatic spats risk making them even harder.<h2>Strategic stakes and geopolitical undercurrents</h2>India and Bangladesh have often hailed their ties as a model for South Asia. The two countries share a 4,096-kilometre border, the longest for either nation and have deep security, trade, and cultural links. In recent years, India has invested heavily in cross-border rail and road connectivity, inland waterway transit, and energy trade.&nbsp;Bangladesh, meanwhile, is also reportedly deepening ties with China, which has become its largest source of foreign credit for infrastructure projects. Beijing’s support for projects like the Padma Bridge Rail Link and various ports has heightened India’s strategic anxieties.As per Reuters, India sees Bangladesh as vital to its “Neighbourhood First” and “Act East” strategies, serving as a bridge to Southeast Asia and as a counterweight to China’s regional ambitions.&nbsp;But with growing distrust over trade barriers, provocative diplomatic language, and the looming challenge of renegotiating the Ganga Waters Treaty, relations are entering a tense and unpredictable phase.&nbsp;(With inputs from the agencies) &nbsp;

 Recent measures include withdrawing transshipment facilities and imposing port restrictions on Bangladeshi goods, perceived as retaliation for remarks by Bangladesh interim government head regarding India’s northeastern states. 

India has tightened restrictions on imports of Bangladeshi jute products and woven fabrics through all land borders, in a move that underscores deepening diplomatic tensions between the neighbours. According to a notification issued by India’s Directorate General of Foreign Trade (DGFT) on Friday, these products will now be permitted entry only via the Nhava Sheva seaport in Maharashtra. “Import from Bangladesh shall not be allowed from any land port on the India-Bangladesh border. However, it is allowed only through the Nhava Sheva Seaport,” the DGFT order said. The restriction, which took effect immediately, applies to a wide range of jute products including flax tow and waste, bast fibres, single flax and jute yarn, multiple folded woven fabrics, and unbleached jute fabrics. Notably, the DGFT clarified that the ban does not affect Bangladesh’s exports to Nepal or Bhutan transiting through India. However, re-export of these goods from Nepal or Bhutan into India is explicitly barred. This is the latest in a series of trade barriers India has imposed on Bangladesh in recent months, signalling a chilling of what has often been described as a model bilateral relationship in South Asia. Earlier curbs deepen friction Friday’s decision follows two recent moves targeting Bangladeshi trade. On April 9, India withdrew a transhipment facility it had granted to Bangladesh for shipping goods to the Middle East, Europe, and other destinations, except for Nepal and Bhutan, as reported by The Hindu BusinessLine. Again, on May 17, India reportedly imposed port restrictions on the import of Bangladeshi goods such as readymade garments and processed food items. These measures are widely seen as retaliation against controversial remarks made by Muhammad Yunus, head of Bangladesh’s interim government, during a recent speech in China. Yunus reportedly described India’s northeastern states as a “landlocked region with no access to the ocean,” a comment viewed in New Delhi as an attempt to undermine the region’s connectivity initiatives, including access to Bangladesh’s Chittagong Port. India–Bangladesh trade dependency Despite the tensions, trade between India and Bangladesh has been expanding. According to India’s Ministry of Commerce data, bilateral trade stood at approximately $14 billion in 2022–23. India exported goods worth over $11.2 billion to Bangladesh while importing around $2.8 billion, making Bangladesh India’s largest trade partner in South Asia but with a significant trade imbalance. Major Indian exports to Bangladesh reportedly include cotton, vehicles, fuel, cereals, and machinery. Bangladesh’s top exports to India include ready-made garments, jute products, and processed foods. As per Bangladesh Bank figures cited by The Daily Star, Bangladesh relies heavily on India for essential commodities, especially during periods of global supply shocks. Jute trade and employment stakes Jute is a critical sector for Bangladesh, employing millions of farmers and factory workers. According to Bangladesh Jute Mills Corporation (BJMC) estimates, over 3 million people in Bangladesh depend directly or indirectly on the jute industry. India has historically been the largest market for Bangladeshi jute goods, though it has frequently resorted to anti-dumping duties and quotas to protect domestic producers. Friday’s restrictions on land routes will raise costs for Bangladeshi exporters, who now face the longer and more expensive seaborne route to Nhava Sheva port, potentially squeezing profit margins and affecting employment. The Ganga Waters Treaty in focus Adding another layer of tension is India is reportedly considering reviewing the 1996 Ganga Waters Treaty as its expiry approaches in 2026. The treaty, signed by then-Prime Ministers H.D. Deve Gowda and Sheikh Hasina, allocates the dry-season flow of the Ganga at Farakka Barrage between the two countries. It guarantees Bangladesh a share of 35,000 cubic feet per second (cusecs) on average during the critical lean season (January to May), though the actual allocation depends on flow levels. According to the treaty text (Government of India, Ministry of Jal Shakti), water sharing is divided in 10-day periods, with provisions for arbitration and joint monitoring. For Bangladesh, the Ganga’s lean-season flow is vital for irrigation, drinking water, and navigation in the southwest, where salinity intrusion from the Bay of Bengal is a severe threat. As quoted by Reuters, Bangladesh has repeatedly expressed concerns that upstream diversions in India have reduced the promised flows, hurting agriculture and drinking water supplies. India, on the other hand, argues that rising demand in West Bengal and Bihar, as well as variable rainfall, complicate full compliance in dry years. Negotiations on renewing the treaty were already expected to be delicate. Recent diplomatic spats risk making them even harder. Strategic stakes and geopolitical undercurrents India and Bangladesh have often hailed their ties as a model for South Asia. The two countries share a 4,096-kilometre border, the longest for either nation and have deep security, trade, and cultural links. In recent years, India has invested heavily in cross-border rail and road connectivity, inland waterway transit, and energy trade. Bangladesh, meanwhile, is also reportedly deepening ties with China, which has become its largest source of foreign credit for infrastructure projects. Beijing’s support for projects like the Padma Bridge Rail Link and various ports has heightened India’s strategic anxieties. As per Reuters, India sees Bangladesh as vital to its “Neighbourhood First” and “Act East” strategies, serving as a bridge to Southeast Asia and as a counterweight to China’s regional ambitions. But with growing distrust over trade barriers, provocative diplomatic language, and the looming challenge of renegotiating the Ganga Waters Treaty, relations are entering a tense and unpredictable phase. (With inputs from the agencies)

India has imposed stricter restrictions on Bangladeshi jute products and woven fabrics, allowing imports only through the Nhava Sheva seaport in Maharashtra, reflecting escalating diplomatic tensions.

India restricts Bangladesh jute imports via land borders amid frayed ties

The long-simmering trade tensions between the United States and Canada flared dramatically this week, after US President Donald Trump abruptly cut off trade negotiations over Ottawa’s plan to press ahead with its new Digital Services Tax. Trump called the move “a direct and blatant attack” on America, warning that punitive tariffs on Canadian goods would be announced within days.&nbsp;As per Associated Press, the President said on Friday that Canada had confirmed it would enforce the controversial tax starting Monday, ending months of fraught negotiations between the two close trading partners.<h2>What is Canada’s Digital Services Tax?</h2>Canada’s Digital Services Tax (DST) was signed into law in June 2024 under the former Trudeau government. According to the Financial Post, the DST applies a three per cent levy on certain revenues earned by large digital firms, those with at least €750 million in global sales and over $20 million in annual Canadian digital revenue.&nbsp;That includes online marketplaces, social media, advertising, and user data sales. It primarily targets American tech giants such as Amazon, Google, Meta, Uber, and Airbnb. The tax is retroactive to January 1, 2022, leaving US companies with an estimated US$2 billion bill due at the end of June.<h2>How companies are expected to comply?</h2>Under Canadian law, firms had to register with the Canada Revenue Agency by 31 January 2025 and must file their first DST returns by 30 June 2025. Failure to register could mean $20,000-per-year fines. Companies that don’t file on time face penalties of five per cent of the unpaid tax plus an extra one per cent per month, capped at 12 months.&nbsp;The Canadian government says the goal is to make sure digital giants pay their fair share of taxes in Canada.<h2>Why is Trump so angry?</h2>The DST has long infuriated Washington. The US argues it unfairly discriminates against American firms, effectively singling out Silicon Valley giants for extra taxes. Trump used blunt language this week to make his anger clear.&nbsp;“Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” he wrote on social media, as per AP. He added: “Economically, we have such power over Canada. We’d rather not use it. But it’s not going to work out well for Canada. They were foolish to do it.” Trump also predicted Canada would eventually remove the tax — but insisted he didn’t care either way.<h2>US industry reaction</h2>US tech firms and trade associations cheered Trump’s tough stance. As quoted by AP, Matt Schruers, head of the Computer &amp; Communications Industry Association, said: “We appreciate the Administration’s decisive response to Canada’s discriminatory tax on US digital exports.”&nbsp;But companies are already passing the costs onto Canadian users. Google has added a special “Canada DST Fee” — a 2.5 per cent surcharge on ads in Canada — to help cover its new tax burden.<h2>Why Canada is standing firm?</h2>Despite heavy pressure, Canada’s government is refusing to blink. Finance Minister François-Philippe Champagne said last week that Ottawa is “going ahead” with the DST, as per the Financial Post.&nbsp;Prime Minister Mark Carney, speaking Friday, was measured but firm: “We will continue to conduct these complex negotiations in the best interests of Canadians. It’s a negotiation.” Canadian officials have suggested they’re open to discussions about the tax as part of broader talks, but for now, it will be enforced, as reported by AP.&nbsp;<h2>Trade dependence raises the stakes</h2>The dispute comes against the backdrop of an extremely deep economic relationship. The United States is by far Canada’s largest trading partner. As per AP, about 80 per cent of Canadian exports go south of the border. That includes three-quarters of all goods shipped abroad.&nbsp;Canada is the largest foreign supplier of steel, aluminium and uranium to the US. It provides 60 per cent of America’s crude oil imports and 85 per cent of electricity imports. Trade is highly integrated, especially for industries like automotive manufacturing, where car parts cross the border multiple times before final assembly. Trump has already imposed 25 per cent tariffs on Canadian steel and aluminium, as well as new auto tariffs, citing security and anti-drug smuggling concerns.<h2>A fragile trade relationship</h2>The DST fight is only the latest flashpoint. Trump’s administration has warned for months it would retaliate against countries with digital taxes targeting US firms.&nbsp;According to Bloomberg, the US previously launched formal consultations over Canada’s tax under the US-Mexico-Canada Agreement. And while Trump says he’ll set new tariff rates for Canadian goods within seven days, Canadian business groups fear the dispute could spiral, hurting both economies. The Canadian Chamber of Commerce has warned the DST could “damage our beneficial and lucrative trade relationship with the US.”<h2>Uncertainty ahead</h2>For now, negotiations have collapsed. Trump has said bluntly that Canada could restart talks by scrapping the tax. But Canada insists it won’t be intimidated, betting that the two countries’ deep interdependence will eventually force both sides back to the table.&nbsp;As trade experts warn, the row could test the strength of one of the world’s closest economic relationships at a time when both economies are already facing challenges.&nbsp;(With inputs from the agencies)&nbsp;

Trump threatened punitive tariffs on Canadian goods following Canada announcement of enforcement. While US firms support Trump stance, raising costs for Canadian consumers, Canada remains resolute, with officials stating the DST will proceed despite pressure.

The long-simmering trade tensions between the United States and Canada flared dramatically this week, after US President Donald Trump abruptly cut off trade negotiations over Ottawa’s plan to press ahead with its new Digital Services Tax. Trump called the move “a direct and blatant attack” on America, warning that punitive tariffs on Canadian goods would be announced within days. As per Associated Press, the President said on Friday that Canada had confirmed it would enforce the controversial tax starting Monday, ending months of fraught negotiations between the two close trading partners. What is Canada’s Digital Services Tax? Canada’s Digital Services Tax (DST) was signed into law in June 2024 under the former Trudeau government. According to the Financial Post, the DST applies a three per cent levy on certain revenues earned by large digital firms, those with at least €750 million in global sales and over $20 million in annual Canadian digital revenue. That includes online marketplaces, social media, advertising, and user data sales. It primarily targets American tech giants such as Amazon, Google, Meta, Uber, and Airbnb. The tax is retroactive to January 1, 2022, leaving US companies with an estimated US$2 billion bill due at the end of June. How companies are expected to comply? Under Canadian law, firms had to register with the Canada Revenue Agency by 31 January 2025 and must file their first DST returns by 30 June 2025. Failure to register could mean $20,000-per-year fines. Companies that don’t file on time face penalties of five per cent of the unpaid tax plus an extra one per cent per month, capped at 12 months. The Canadian government says the goal is to make sure digital giants pay their fair share of taxes in Canada. Why is Trump so angry? The DST has long infuriated Washington. The US argues it unfairly discriminates against American firms, effectively singling out Silicon Valley giants for extra taxes. Trump used blunt language this week to make his anger clear. “Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” he wrote on social media, as per AP. He added: “Economically, we have such power over Canada. We’d rather not use it. But it’s not going to work out well for Canada. They were foolish to do it.” Trump also predicted Canada would eventually remove the tax — but insisted he didn’t care either way. US industry reaction US tech firms and trade associations cheered Trump’s tough stance. As quoted by AP, Matt Schruers, head of the Computer & Communications Industry Association, said: “We appreciate the Administration’s decisive response to Canada’s discriminatory tax on US digital exports.” But companies are already passing the costs onto Canadian users. Google has added a special “Canada DST Fee” — a 2.5 per cent surcharge on ads in Canada — to help cover its new tax burden. Why Canada is standing firm? Despite heavy pressure, Canada’s government is refusing to blink. Finance Minister François-Philippe Champagne said last week that Ottawa is “going ahead” with the DST, as per the Financial Post. Prime Minister Mark Carney, speaking Friday, was measured but firm: “We will continue to conduct these complex negotiations in the best interests of Canadians. It’s a negotiation.” Canadian officials have suggested they’re open to discussions about the tax as part of broader talks, but for now, it will be enforced, as reported by AP. Trade dependence raises the stakes The dispute comes against the backdrop of an extremely deep economic relationship. The United States is by far Canada’s largest trading partner. As per AP, about 80 per cent of Canadian exports go south of the border. That includes three-quarters of all goods shipped abroad. Canada is the largest foreign supplier of steel, aluminium and uranium to the US. It provides 60 per cent of America’s crude oil imports and 85 per cent of electricity imports. Trade is highly integrated, especially for industries like automotive manufacturing, where car parts cross the border multiple times before final assembly. Trump has already imposed 25 per cent tariffs on Canadian steel and aluminium, as well as new auto tariffs, citing security and anti-drug smuggling concerns. A fragile trade relationship The DST fight is only the latest flashpoint. Trump’s administration has warned for months it would retaliate against countries with digital taxes targeting US firms. According to Bloomberg, the US previously launched formal consultations over Canada’s tax under the US-Mexico-Canada Agreement. And while Trump says he’ll set new tariff rates for Canadian goods within seven days, Canadian business groups fear the dispute could spiral, hurting both economies. The Canadian Chamber of Commerce has warned the DST could “damage our beneficial and lucrative trade relationship with the US.” Uncertainty ahead For now, negotiations have collapsed. Trump has said bluntly that Canada could restart talks by scrapping the tax. But Canada insists it won’t be intimidated, betting that the two countries’ deep interdependence will eventually force both sides back to the table. As trade experts warn, the row could test the strength of one of the world’s closest economic relationships at a time when both economies are already facing challenges. (With inputs from the agencies)

Trade tensions between the United States and Canada escalated as President Trump halted negotiations over Canada's Digital Services Tax (DST), which he labeled a "blatant attack" on the US.

What is Canada's Digital Service Tax that made Trump cut off trade deal?

With his self-imposed July 9 deadline for "Liberation Day" tariffs looming, US President Donald Trump on Friday (Jun 27) said that his administration will soon notify India and other countries about "what they have to pay" to continue trading with the United States "over the next week and a half or so". Trump's suspenseful remarks come just hours after US Treasury Secretary Scott Bessent suggested that trade talks with various nations could continue to September.<h2>What did Trump say about tariffs?</h2>Talking to reporters, the President of the United States (POTUS) Trump, said that over the next 7-10 days, America would send out letters telling countries how much they have to pay to continue trade with the US. "At a certain point, over the next week and a half or so, or maybe before, we’re going to send out a letter. We talked to many other countries, and we are just going to tell them what they have to pay to do business in the United States. And it's going to go very quickly," he said.He also said that he sent the letter because there were "200 countries" US had to negotiate with and that his administration couldn't do that.Meanwhile, Trump was upbeat about trade prospects with other countries, especially India and China. "We made a deal with China. … We're going to be trading in China. That’s going to come a little bit down the road, but we're going to be trading in China," he said. On India, he said, "we're going to reach a deal where we have the right to go in and trade".Yet, a senior Indian official told Reuters Thursday that negotiations remain stuck on several points, and no final deal is imminent.So far, Washington has reached a finalised trade agreement only with the United Kingdom, while talks with other major partners — including the European Union, Japan, and South Korea — remain unresolved.<h2>Trump-Canada tensions rise</h2>However, Trump has simultaneously reopened another front in his trade war, abruptly halting discussions with Canada following Ottawa's announcement of a digital services tax aimed largely at American tech giants."We have just been informed that Canada, a very difficult Country to TRADE with … has just announced that they are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country," Trump posted on Truth Social."Based on this egregious tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately."

Donald Trump said his administration will soon notify India and other countries about "what they have to pay" to continue trading with the United States "over the next week and a half or so". 

With his self-imposed July 9 deadline for "Liberation Day" tariffs looming, US President Donald Trump on Friday (Jun 27) said that his administration will soon notify India and other countries about "what they have to pay" to continue trading with the United States "over the next week and a half or so". Trump's suspenseful remarks come just hours after US Treasury Secretary Scott Bessent suggested that trade talks with various nations could continue to September. What did Trump say about tariffs? Talking to reporters, the President of the United States (POTUS) Trump, said that over the next 7-10 days, America would send out letters telling countries how much they have to pay to continue trade with the US. "At a certain point, over the next week and a half or so, or maybe before, we’re going to send out a letter. We talked to many other countries, and we are just going to tell them what they have to pay to do business in the United States. And it's going to go very quickly," he said. He also said that he sent the letter because there were "200 countries" US had to negotiate with and that his administration couldn't do that. Meanwhile, Trump was upbeat about trade prospects with other countries, especially India and China. "We made a deal with China. … We're going to be trading in China. That’s going to come a little bit down the road, but we're going to be trading in China," he said. On India, he said, "we're going to reach a deal where we have the right to go in and trade". Yet, a senior Indian official told Reuters Thursday that negotiations remain stuck on several points, and no final deal is imminent. So far, Washington has reached a finalised trade agreement only with the United Kingdom, while talks with other major partners — including the European Union, Japan, and South Korea — remain unresolved. Trump-Canada tensions rise However, Trump has simultaneously reopened another front in his trade war, abruptly halting discussions with Canada following Ottawa's announcement of a digital services tax aimed largely at American tech giants. "We have just been informed that Canada, a very difficult Country to TRADE with … has just announced that they are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country," Trump posted on Truth Social. "Based on this egregious tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately."

Donald Trump said his administration will soon notify India and other countries about "what they have to pay" to continue trading with the United States "over the next week and a half or so".&nbsp;

Trump says India and other countries will soon learn what 'they have to pay' to trade with US