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South Korea is urging the United States to strike a “mutually beneficial” trade deal, as tensions rise over looming tariffs that could hit key Korean exports. During his first official trip to Washington this week, South Korea’s new trade minister, Yeo Han-koo, pushed for a broader, forward-looking agreement. As per Bloomberg, Yeo met US Commerce Secretary Howard Lutnick, Trade Representative Jamieson Greer, Interior Secretary Doug Burgum, and US lawmakers. The high-stakes meetings come ahead of a 9 July deadline when higher tariffs paused in April could be reinstated.<h2>Turning crisis into opportunity</h2>In a statement released on Saturday, South Korea’s Trade Ministry shared Yeo’s message of cooperation “The ongoing negotiations are not merely for tariffs but also an opportunity to establish a new framework for future cooperation,” Yeo said in a statement as quoted by Bloomberg.&nbsp;He promised to “fiercely engage” in talks to ensure that momentum for collaboration between Seoul and Washington isn’t lost. Yeo framed the discussions as a chance to turn the “current crisis into an opportunity,” as per Bloomberg.<h2>South Korea’s trade dependency on the US</h2>South Korea and the US share a deeply interdependent trade relationship. The United States is South Korea’s second-largest export market, buying goods ranging from cars to semiconductors and batteries. These products are critical for South Korea’s economy and vital to US manufacturing supply chains.&nbsp;Meanwhile, South Korea is a key US ally in East Asia, offering advanced manufacturing capacity, cutting-edge tech development, and strategic security cooperation. Any significant increase in US tariffs would hit South Korean exporters hard. The country’s economy is already feeling the pinch from slowing domestic consumption. The Bank of Korea last month slashed its 2025 GDP growth forecast to just 0.8 per cent from 1.5 per cent, underlining the risk of further economic stress.<h2>Industry concerns over US export controls</h2>Beyond tariffs, Yeo also raised industry worries about tightening US export controls. Washington has been imposing stricter rules on technology transfers, especially to countries like China, in an effort to secure critical tech supply chains and limit military applications.South Korean companies heavily involved in semiconductor production and advanced manufacturing, fear they could get caught in the crossfire.<h2>US says talks underway with multiple nations</h2>As per Bloomberg, US Commerce Secretary Howard Lutnick confirmed Washington is working to finalise trade deals with around 10 countries ahead of the July 9 deadline. Speaking on Bloomberg Television, Lutnick said that President Donald Trump might extend the deadline if talks progress, but he did not specify which nations were involved.Negotiating partners will get a “response,” he said, offering some hope of flexibility. But as per Yonhap News, a senior South Korean official in Washington made clear that Seoul has not received any notification of an extension, saying the country is not yet in a position to “feel assured.”<h2>Tariffs risk harming a vital partnership</h2>For both sides, the stakes are high. South Korea is not only a top trade partner but also a major hub for critical industries, including electric vehicle batteries, semiconductors, and automotive manufacturing. A 25 per cent across-the-board tariff would risk disrupting global supply chains, push up costs for US manufacturers, and worsen inflation pressures. Seoul’s push for a new deal isn’t just about avoiding immediate pain. It’s also about defining a modern trade framework that strengthens the alliance in the face of rising global competition, particularly from China.&nbsp;As negotiations continue, all eyes will be on Washington to see if a last-minute deal can keep the trade partnership on track.&nbsp;(With inputs from the agencies)&nbsp;

Trade Minister Yeo Han-koo met with US officials, highlighting the urgency as a July 9 deadline approaches for potential tariff reinstatements. Yeo emphasized using negotiations to create a new framework for cooperation and turning the current crisis into an opportunity.

South Korea is urging the United States to strike a “mutually beneficial” trade deal, as tensions rise over looming tariffs that could hit key Korean exports. During his first official trip to Washington this week, South Korea’s new trade minister, Yeo Han-koo, pushed for a broader, forward-looking agreement. As per Bloomberg, Yeo met US Commerce Secretary Howard Lutnick, Trade Representative Jamieson Greer, Interior Secretary Doug Burgum, and US lawmakers. The high-stakes meetings come ahead of a 9 July deadline when higher tariffs paused in April could be reinstated. Turning crisis into opportunity In a statement released on Saturday, South Korea’s Trade Ministry shared Yeo’s message of cooperation “The ongoing negotiations are not merely for tariffs but also an opportunity to establish a new framework for future cooperation,” Yeo said in a statement as quoted by Bloomberg. He promised to “fiercely engage” in talks to ensure that momentum for collaboration between Seoul and Washington isn’t lost. Yeo framed the discussions as a chance to turn the “current crisis into an opportunity,” as per Bloomberg. South Korea’s trade dependency on the US South Korea and the US share a deeply interdependent trade relationship. The United States is South Korea’s second-largest export market, buying goods ranging from cars to semiconductors and batteries. These products are critical for South Korea’s economy and vital to US manufacturing supply chains. Meanwhile, South Korea is a key US ally in East Asia, offering advanced manufacturing capacity, cutting-edge tech development, and strategic security cooperation. Any significant increase in US tariffs would hit South Korean exporters hard. The country’s economy is already feeling the pinch from slowing domestic consumption. The Bank of Korea last month slashed its 2025 GDP growth forecast to just 0.8 per cent from 1.5 per cent, underlining the risk of further economic stress. Industry concerns over US export controls Beyond tariffs, Yeo also raised industry worries about tightening US export controls. Washington has been imposing stricter rules on technology transfers, especially to countries like China, in an effort to secure critical tech supply chains and limit military applications. South Korean companies heavily involved in semiconductor production and advanced manufacturing, fear they could get caught in the crossfire. US says talks underway with multiple nations As per Bloomberg, US Commerce Secretary Howard Lutnick confirmed Washington is working to finalise trade deals with around 10 countries ahead of the July 9 deadline. Speaking on Bloomberg Television, Lutnick said that President Donald Trump might extend the deadline if talks progress, but he did not specify which nations were involved. Negotiating partners will get a “response,” he said, offering some hope of flexibility. But as per Yonhap News, a senior South Korean official in Washington made clear that Seoul has not received any notification of an extension, saying the country is not yet in a position to “feel assured.” Tariffs risk harming a vital partnership For both sides, the stakes are high. South Korea is not only a top trade partner but also a major hub for critical industries, including electric vehicle batteries, semiconductors, and automotive manufacturing. A 25 per cent across-the-board tariff would risk disrupting global supply chains, push up costs for US manufacturers, and worsen inflation pressures. Seoul’s push for a new deal isn’t just about avoiding immediate pain. It’s also about defining a modern trade framework that strengthens the alliance in the face of rising global competition, particularly from China. As negotiations continue, all eyes will be on Washington to see if a last-minute deal can keep the trade partnership on track. (With inputs from the agencies)

South Korea is advocating for a "mutually beneficial" trade deal with the US amid rising tariff threats on key exports.

South Korea urges for 'mutually beneficial' trade deal with US to avert tariff threat

Global carmakers and tech giants are breathing a cautious sigh of relief as China’s rare earth magnets start flowing again, but supply chain uncertainty lingers despite a diplomatic breakthrough between Washington and Beijing aimed at easing critical mineral export restrictions. After weeks of industry alarm, the threat of mass shutdowns across automotive production lines is easing. European suppliers report receiving enough Chinese export licences to keep factories running in July, avoiding the “full panic” seen earlier this month.&nbsp;However, hundreds of licence applications remain stuck in China’s opaque approval system, with exporters prioritising deliveries to familiar partners and leaving many US-bound shipments delayed or blocked entirely.<h2>Licences speed up but hurdles remain</h2>China imposed strict export controls on seven rare earths and related magnets in April, retaliating against US tariffs announced by President Donald Trump. The move sent shockwaves through supply chains critical to automakers, aerospace manufacturers, semiconductor firms and military contractors.According to Reuters, export volumes of rare earth magnets from China have plunged by roughly 75 per cent since the restrictions took effect, forcing production halts at plants in Asia, Europe and the United States. But industry groups say the worst-case scenario has been avoided for now.&nbsp;Nils Poel, head of market affairs at European supplier association CLEPA, said the rate of licence issuance has accelerated to around 60 per cent from 25 per cent in recent weeks. “Overall the feeling is that we probably will still have production in July and that the impact will be manageable,” Poel told Reuters. “Maybe here and there a production line will be affected, but we have avoided that for the moment.”<h2>US and China agree to speed up shipments</h2>The pressure on global supply chains prompted urgent high-level diplomacy. On Thursday, a White House official said the US and China had reached an “understanding” to expedite rare earth shipments to American buyers. “The administration and China agreed to an additional understanding for a framework to implement the Geneva agreement,” the official told Reuters, referring to trade talks held in May.&nbsp;That deal included China’s commitment to remove non-tariff countermeasures it had imposed in response to Trump’s tariffs, though neither side offered much detail about how those measures would be rolled back. US Commerce Secretary Howard Lutnick was quoted by Bloomberg as saying: “They’re going to deliver rare earths to us” and once they do “we’ll take down our countermeasures.”<h2>Beijing’s cautious approach</h2>While the White House framed the deal as a breakthrough, Beijing signalled it would continue vetting export licences carefully, citing national security concerns. China’s embassy in Washington did not immediately respond to requests for comment. According to industry sources, China has taken its dual-use restrictions on rare earths “very seriously” and is scrutinising buyers to ensure materials are not diverted to US military programmes, as per Reuters. &nbsp;This strict vetting has slowed licensing approvals, particularly for shipments bound for the US or routed through third countries such as India.&nbsp;One European official told Reuters that China was approving the “bare minimum” of licences to avoid European production shutdowns while maintaining leverage in the broader trade dispute.<h2>Automakers still on alert</h2>Automotive giants remain wary of further disruption. Volkswagen told Reuters its supply of rare earth components was currently stable, while Stellantis said it had resolved its immediate production concerns. But the underlying risk of a fresh shortage remains real. Two weeks ago, the car industry was in “full panic”, according to an executive at a leading US supplier and a source with knowledge of a major European carmaker’s supply chain, both speaking anonymously to Reuters.&nbsp;Even now, delays are causing headaches for American firms. US magnet maker Dexter Magnetic Technologies, which supplies both civilian and defence industries—has received just five of 180 export licences since April “It’s an extended delay,” CEO Kash Mishra told Reuters. “It’s 45 days trying to get the paperwork right for the supplier, and then it’s 45 more days or so before any licences are granted.”<h2>Trade war truce remains fragile</h2>The rare earth dispute has become a central front in the wider US–China trade war that has escalated under President Trump’s administration. In response to China’s critical mineral restrictions, Washington slapped new export controls of its own, blocking shipments of semiconductor design software, aircraft components and other goods to Chinese firms.&nbsp;Earlier in June, Trump said there was an agreement with China in which Beijing would resume supplying magnets and rare earth minerals, while the US would allow Chinese students into its colleges and universities. While this week’s deal marks a tentative de-escalation, the fundamental mistrust between the two economic superpowers remains.&nbsp;For now, automakers and technology firms hope the flow of rare earth materials will resume quickly enough to prevent fresh production stoppages. But with hundreds of export licences still pending and both governments keeping the details of their agreement vague, the supply chain remains anything but secure.&nbsp;(With inputs from the agencies)&nbsp;

A fragile trade truce between the US and China offers temporary relief to carmakers and tech firms amid ongoing delays in rare earth magnet exports, with hundreds of licence applications still stalled and fresh supply risks looming.

Global carmakers and tech giants are breathing a cautious sigh of relief as China’s rare earth magnets start flowing again, but supply chain uncertainty lingers despite a diplomatic breakthrough between Washington and Beijing aimed at easing critical mineral export restrictions. After weeks of industry alarm, the threat of mass shutdowns across automotive production lines is easing. European suppliers report receiving enough Chinese export licences to keep factories running in July, avoiding the “full panic” seen earlier this month. However, hundreds of licence applications remain stuck in China’s opaque approval system, with exporters prioritising deliveries to familiar partners and leaving many US-bound shipments delayed or blocked entirely. Licences speed up but hurdles remain China imposed strict export controls on seven rare earths and related magnets in April, retaliating against US tariffs announced by President Donald Trump. The move sent shockwaves through supply chains critical to automakers, aerospace manufacturers, semiconductor firms and military contractors. According to Reuters, export volumes of rare earth magnets from China have plunged by roughly 75 per cent since the restrictions took effect, forcing production halts at plants in Asia, Europe and the United States. But industry groups say the worst-case scenario has been avoided for now. Nils Poel, head of market affairs at European supplier association CLEPA, said the rate of licence issuance has accelerated to around 60 per cent from 25 per cent in recent weeks. “Overall the feeling is that we probably will still have production in July and that the impact will be manageable,” Poel told Reuters. “Maybe here and there a production line will be affected, but we have avoided that for the moment.” US and China agree to speed up shipments The pressure on global supply chains prompted urgent high-level diplomacy. On Thursday, a White House official said the US and China had reached an “understanding” to expedite rare earth shipments to American buyers. “The administration and China agreed to an additional understanding for a framework to implement the Geneva agreement,” the official told Reuters, referring to trade talks held in May. That deal included China’s commitment to remove non-tariff countermeasures it had imposed in response to Trump’s tariffs, though neither side offered much detail about how those measures would be rolled back. US Commerce Secretary Howard Lutnick was quoted by Bloomberg as saying: “They’re going to deliver rare earths to us” and once they do “we’ll take down our countermeasures.” Beijing’s cautious approach While the White House framed the deal as a breakthrough, Beijing signalled it would continue vetting export licences carefully, citing national security concerns. China’s embassy in Washington did not immediately respond to requests for comment. According to industry sources, China has taken its dual-use restrictions on rare earths “very seriously” and is scrutinising buyers to ensure materials are not diverted to US military programmes, as per Reuters. This strict vetting has slowed licensing approvals, particularly for shipments bound for the US or routed through third countries such as India. One European official told Reuters that China was approving the “bare minimum” of licences to avoid European production shutdowns while maintaining leverage in the broader trade dispute. Automakers still on alert Automotive giants remain wary of further disruption. Volkswagen told Reuters its supply of rare earth components was currently stable, while Stellantis said it had resolved its immediate production concerns. But the underlying risk of a fresh shortage remains real. Two weeks ago, the car industry was in “full panic”, according to an executive at a leading US supplier and a source with knowledge of a major European carmaker’s supply chain, both speaking anonymously to Reuters. Even now, delays are causing headaches for American firms. US magnet maker Dexter Magnetic Technologies, which supplies both civilian and defence industries—has received just five of 180 export licences since April “It’s an extended delay,” CEO Kash Mishra told Reuters. “It’s 45 days trying to get the paperwork right for the supplier, and then it’s 45 more days or so before any licences are granted.” Trade war truce remains fragile The rare earth dispute has become a central front in the wider US–China trade war that has escalated under President Trump’s administration. In response to China’s critical mineral restrictions, Washington slapped new export controls of its own, blocking shipments of semiconductor design software, aircraft components and other goods to Chinese firms. Earlier in June, Trump said there was an agreement with China in which Beijing would resume supplying magnets and rare earth minerals, while the US would allow Chinese students into its colleges and universities. While this week’s deal marks a tentative de-escalation, the fundamental mistrust between the two economic superpowers remains. For now, automakers and technology firms hope the flow of rare earth materials will resume quickly enough to prevent fresh production stoppages. But with hundreds of export licences still pending and both governments keeping the details of their agreement vague, the supply chain remains anything but secure. (With inputs from the agencies)

Global automakers dodge immediate rare earth shortages after a US–China deal speeds up shipments, but lingering export bottlenecks keep supply chains on edge.

China’s rare earths flow again but supply risks remain as US and Beijing strike deal

US President Donald Trump has renewed his attacks on Federal Reserve Chair Jerome Powell, demanding an aggressive cut in interest rates to 1 per cent while declaring he would “love” for Powell to step down. The latest salvo marks Trump’s most explicit threat yet to reshape the leadership of the world’s most powerful central bank to deliver the steep rate cuts he wants as he sets the stage for a high-stakes election year.&nbsp;As per Reuters, Trump called Powell “stupid” and accused him of suffering from “Trump Derangement Syndrome”, blaming the Fed chief for keeping borrowing costs too high and choking economic momentum.<h2>Trump’s explicit call for deep rate cuts</h2>Speaking at the White House on Friday, Trump criticised the Fed for holding its benchmark short-term rate in a range of 4.25 to 4.50 per cent, insisting that the central bank should immediately cut rates to just 1 per cent.&nbsp;“I think we should be paying 1 per cent right now, and we’re paying more because we have a guy who suffers from, I think, Trump Derangement Syndrome,” Trump said, as quoted by Reuters. He added: “I’d love him to resign if he wanted to, he’s done a lousy job.”<h2>A litmus test for the next Fed chief</h2>Trump also made clear that any successor he nominates for Powell will have to meet his demand for drastic rate cuts. “If I think somebody’s going to keep the rates where they are or whatever, I’m not going to put them in,” Trump said. “I’m going to put somebody that wants to cut rates. There are a lot of them out there," as quoted by Reuters.&nbsp;&nbsp;This unusually blunt litmus test signals Trump’s readiness to break with precedent. While past US presidents have privately complained about the Fed keeping rates too high, few have set such clear and public policy conditions for a nominee. As per Reuters, Trump’s strategy is to ensure any new Fed chief will align with his push for cheap borrowing costs to stimulate the economy heading into the 2026 presidential race.<h2>Fed’s caution over inflation</h2>The Federal Reserve, however, has signalled it will move cautiously on rates. After a series of aggressive rate hikes to counter the biggest inflation surge since the 1970s and 1980s, the Fed eased somewhat in late 2024 but has held rates steady so far in 2025. Policymakers remain wary that cutting too quickly could reignite inflation, particularly in light of Trump’s own tariff threats, which risk fuelling price increases.&nbsp;Fed officials have pencilled in a modest half-percentage-point reduction later this year, a fraction of the dramatic cuts Trump is demanding. According to Reuters, Trump has repeatedly attacked Powell for refusing to lower borrowing costs since Trump returned to the White House in January.<h2>Powell’s tenure and Trump’s succession plan</h2>Powell’s term as chair of the Federal Reserve runs until May 2026, making his removal unlikely barring malfeasance or misconduct. Presidents are generally seen as unable to dismiss Fed chairs over policy disagreements, a legal protection designed to safeguard central bank independence. Trump had previously threatened to fire Powell outright, but in recent weeks he has largely abandoned that approach. A Supreme Court opinion is seen to have reinforced the view that presidents cannot dismiss Fed leaders over policy differences.&nbsp;Instead, Trump has shifted focus to naming Powell’s successor well in advance. He told reporters he has three or four potential candidates in mind and plans to announce his choice soon, potentially months ahead of the usual schedule. According to Reuters, such an early nomination is widely viewed as an effort to create a “shadow chair” who could undermine Powell’s authority and signal Trump’s preferred policy direction.<h2>Who could replace Powell?</h2>Treasury Secretary Scott Bessent is seen as one of the leading candidates to replace Powell. But Bessent has downplayed suggestions of serving as a “shadow chair” before the term is up. “I don’t think anyone’s necessarily talking about that,” Bessent told CNBC. He noted that while Powell’s term as chair ends in May 2026, he can remain on the Fed Board of Governors until 2028. The first likely opportunity for a Trump appointment may come when Governor Adriana Kugler’s term expires in early 2026.&nbsp;“So there is a chance that the person who is going to become the chair could be appointed in January, which would probably mean an October, November nomination,” Bessent said, as quoted by Reuters. When asked about speculation he might be in the running, Bessent said: “I’ll do what the president wants, but I think I have the best job in Washington.”&nbsp;Other potential names in circulation include White House economic adviser Kevin Hassett, former Fed Governor Kevin Warsh, and current Governor Christopher Waller. Waller, who was appointed during Trump’s first term, recently said he is open to cutting interest rates as soon as the Fed’s next meeting at the end of July.<h2>Political pressure meets Fed independence</h2>Trump’s aggressive rhetoric lays bare the growing tension between the White House and the Federal Reserve over monetary policy. While presidents have always eyed the Fed’s decisions closely, Trump’s approach marks a dramatic escalation in politicising central bank policy.&nbsp;The independence of the Federal Reserve has long been viewed as a cornerstone of its credibility in ensuring price stability and maintaining global confidence in the US economy. Trump’s demands for loyalty on rate policy could test the limits of that independence in the months to come.&nbsp;As per Reuters, with Powell’s term entering its final year, the battle over interest rates is poised to become a central economic and political fault line in the lead-up to the 2026 election.&nbsp;(With inputs from the agencies)&nbsp;

Amid election-year economic manoeuvring, US President Trump slams Fed Chair Jerome Powell, calls for his resignation, and vows to nominate a rate-cut-friendly successor, deepening concerns over political interference in central bank independence.

US President Donald Trump has renewed his attacks on Federal Reserve Chair Jerome Powell, demanding an aggressive cut in interest rates to 1 per cent while declaring he would “love” for Powell to step down. The latest salvo marks Trump’s most explicit threat yet to reshape the leadership of the world’s most powerful central bank to deliver the steep rate cuts he wants as he sets the stage for a high-stakes election year. As per Reuters, Trump called Powell “stupid” and accused him of suffering from “Trump Derangement Syndrome”, blaming the Fed chief for keeping borrowing costs too high and choking economic momentum. Trump’s explicit call for deep rate cuts Speaking at the White House on Friday, Trump criticised the Fed for holding its benchmark short-term rate in a range of 4.25 to 4.50 per cent, insisting that the central bank should immediately cut rates to just 1 per cent. “I think we should be paying 1 per cent right now, and we’re paying more because we have a guy who suffers from, I think, Trump Derangement Syndrome,” Trump said, as quoted by Reuters. He added: “I’d love him to resign if he wanted to, he’s done a lousy job.” A litmus test for the next Fed chief Trump also made clear that any successor he nominates for Powell will have to meet his demand for drastic rate cuts. “If I think somebody’s going to keep the rates where they are or whatever, I’m not going to put them in,” Trump said. “I’m going to put somebody that wants to cut rates. There are a lot of them out there," as quoted by Reuters. This unusually blunt litmus test signals Trump’s readiness to break with precedent. While past US presidents have privately complained about the Fed keeping rates too high, few have set such clear and public policy conditions for a nominee. As per Reuters, Trump’s strategy is to ensure any new Fed chief will align with his push for cheap borrowing costs to stimulate the economy heading into the 2026 presidential race. Fed’s caution over inflation The Federal Reserve, however, has signalled it will move cautiously on rates. After a series of aggressive rate hikes to counter the biggest inflation surge since the 1970s and 1980s, the Fed eased somewhat in late 2024 but has held rates steady so far in 2025. Policymakers remain wary that cutting too quickly could reignite inflation, particularly in light of Trump’s own tariff threats, which risk fuelling price increases. Fed officials have pencilled in a modest half-percentage-point reduction later this year, a fraction of the dramatic cuts Trump is demanding. According to Reuters, Trump has repeatedly attacked Powell for refusing to lower borrowing costs since Trump returned to the White House in January. Powell’s tenure and Trump’s succession plan Powell’s term as chair of the Federal Reserve runs until May 2026, making his removal unlikely barring malfeasance or misconduct. Presidents are generally seen as unable to dismiss Fed chairs over policy disagreements, a legal protection designed to safeguard central bank independence. Trump had previously threatened to fire Powell outright, but in recent weeks he has largely abandoned that approach. A Supreme Court opinion is seen to have reinforced the view that presidents cannot dismiss Fed leaders over policy differences. Instead, Trump has shifted focus to naming Powell’s successor well in advance. He told reporters he has three or four potential candidates in mind and plans to announce his choice soon, potentially months ahead of the usual schedule. According to Reuters, such an early nomination is widely viewed as an effort to create a “shadow chair” who could undermine Powell’s authority and signal Trump’s preferred policy direction. Who could replace Powell? Treasury Secretary Scott Bessent is seen as one of the leading candidates to replace Powell. But Bessent has downplayed suggestions of serving as a “shadow chair” before the term is up. “I don’t think anyone’s necessarily talking about that,” Bessent told CNBC. He noted that while Powell’s term as chair ends in May 2026, he can remain on the Fed Board of Governors until 2028. The first likely opportunity for a Trump appointment may come when Governor Adriana Kugler’s term expires in early 2026. “So there is a chance that the person who is going to become the chair could be appointed in January, which would probably mean an October, November nomination,” Bessent said, as quoted by Reuters. When asked about speculation he might be in the running, Bessent said: “I’ll do what the president wants, but I think I have the best job in Washington.” Other potential names in circulation include White House economic adviser Kevin Hassett, former Fed Governor Kevin Warsh, and current Governor Christopher Waller. Waller, who was appointed during Trump’s first term, recently said he is open to cutting interest rates as soon as the Fed’s next meeting at the end of July. Political pressure meets Fed independence Trump’s aggressive rhetoric lays bare the growing tension between the White House and the Federal Reserve over monetary policy. While presidents have always eyed the Fed’s decisions closely, Trump’s approach marks a dramatic escalation in politicising central bank policy. The independence of the Federal Reserve has long been viewed as a cornerstone of its credibility in ensuring price stability and maintaining global confidence in the US economy. Trump’s demands for loyalty on rate policy could test the limits of that independence in the months to come. As per Reuters, with Powell’s term entering its final year, the battle over interest rates is poised to become a central economic and political fault line in the lead-up to the 2026 election. (With inputs from the agencies)

Donald Trump escalates pressure on Fed Chair Jerome Powell, demanding a drastic rate cut to 1% and signalling he’ll install a successor who aligns with his economic agenda ahead of the 2026 election.

Trump demands 1% interest rate, says he’d ‘love’ for Powell to resign

Oil prices steadied on Friday after a turbulent week that saw their sharpest weekly decline in nearly two years, as fears of supply disruption from the Israel–Iran conflict eased and traders eyed potential changes in OPEC+ output policy.&nbsp;Brent crude futures climbed above $68 a barrel in early trade, while US West Texas Intermediate (WTI) crude hovered around $65.80. Despite the modest rebound, both contracts were on track to post weekly losses of roughly 12 per cent, their steepest drop since 2023.<h2>Ceasefire between Israel and Iran cools market fears</h2>The steep sell-off this week was driven by geopolitical developments that removed the war risk premium almost overnight. The crisis escalated over the weekend when the US attacked Iranian nuclear sites, sending prices to a five-month high on Monday. However, markets reversed sharply after US President Donald Trump brokered a ceasefire between Israel and Iran on Tuesday, as per Reuters.&nbsp;With hostilities pausing, traders and analysts said they could see no material impact on oil flows in the short term, ending immediate fears of a broader regional disruption that had supported prices earlier in the week.<h2>OPEC+ output plans in focus</h2>Prices were also weighed down by a report suggesting the OPEC+ group of producers is considering a supply increase in August. According to the Wall Street Journal, discussions within the alliance point to a potential move to lift output quotas to meet expected summer demand and stabilise markets after recent volatility.&nbsp;Such a move would mark a cautious shift in policy, with OPEC+ balancing the need to keep prices from overheating with concerns about losing market share to non-member producers.<h2>Rate-cut bets add a floor to prices</h2>Despite the week’s sharp losses, some support for oil came from renewed bets on US interest rate cuts. &nbsp;As per the Wall Street Journal, President Trump is reportedly planning to name a successor to Federal Reserve Chair Jerome Powell earlier than expected. That move, seen as a bid to push for aggressive rate cuts, fuelled expectations that lower borrowing costs could stimulate US economic activity and boost oil demand.&nbsp;While the Fed has so far kept its benchmark rate at 4.25–4.50 per cent, markets are watching closely for any signal of a policy shift that could revive global growth prospects and energy consumption.<h2>Markets await clarity on supply and demand outlook</h2>With oil benchmarks now back at levels seen before the Israel–Iran conflict began, traders are bracing for further clarity on OPEC+ production plans and the macroeconomic outlook. The abrupt swing from war fears to ceasefire calm, combined with central bank policy uncertainty, underscores the fragile balance in oil markets.&nbsp;For now, the ceasefire has defused a key geopolitical risk, but the coming weeks could test whether lower prices prompt fresh diplomatic tension within OPEC+ over production strategy or whether demand fears persist amid slowing global growth.&nbsp;(With inputs from the agencies)

Oil benchmarks drop nearly 12% for the week, the steepest fall in almost two years, as a surprise ceasefire between Israel and Iran eases supply fears, while traders weigh potential OPEC+ output increases and US rate-cut expectations.

Oil prices steadied on Friday after a turbulent week that saw their sharpest weekly decline in nearly two years, as fears of supply disruption from the Israel–Iran conflict eased and traders eyed potential changes in OPEC+ output policy. Brent crude futures climbed above $68 a barrel in early trade, while US West Texas Intermediate (WTI) crude hovered around $65.80. Despite the modest rebound, both contracts were on track to post weekly losses of roughly 12 per cent, their steepest drop since 2023. Ceasefire between Israel and Iran cools market fears The steep sell-off this week was driven by geopolitical developments that removed the war risk premium almost overnight. The crisis escalated over the weekend when the US attacked Iranian nuclear sites, sending prices to a five-month high on Monday. However, markets reversed sharply after US President Donald Trump brokered a ceasefire between Israel and Iran on Tuesday, as per Reuters. With hostilities pausing, traders and analysts said they could see no material impact on oil flows in the short term, ending immediate fears of a broader regional disruption that had supported prices earlier in the week. OPEC+ output plans in focus Prices were also weighed down by a report suggesting the OPEC+ group of producers is considering a supply increase in August. According to the Wall Street Journal, discussions within the alliance point to a potential move to lift output quotas to meet expected summer demand and stabilise markets after recent volatility. Such a move would mark a cautious shift in policy, with OPEC+ balancing the need to keep prices from overheating with concerns about losing market share to non-member producers. Rate-cut bets add a floor to prices Despite the week’s sharp losses, some support for oil came from renewed bets on US interest rate cuts. As per the Wall Street Journal, President Trump is reportedly planning to name a successor to Federal Reserve Chair Jerome Powell earlier than expected. That move, seen as a bid to push for aggressive rate cuts, fuelled expectations that lower borrowing costs could stimulate US economic activity and boost oil demand. While the Fed has so far kept its benchmark rate at 4.25–4.50 per cent, markets are watching closely for any signal of a policy shift that could revive global growth prospects and energy consumption. Markets await clarity on supply and demand outlook With oil benchmarks now back at levels seen before the Israel–Iran conflict began, traders are bracing for further clarity on OPEC+ production plans and the macroeconomic outlook. The abrupt swing from war fears to ceasefire calm, combined with central bank policy uncertainty, underscores the fragile balance in oil markets. For now, the ceasefire has defused a key geopolitical risk, but the coming weeks could test whether lower prices prompt fresh diplomatic tension within OPEC+ over production strategy or whether demand fears persist amid slowing global growth. (With inputs from the agencies)

Oil prices steadied after a volatile week, as easing Israel–Iran tensions and speculation over OPEC+ supply shifts drove the sharpest weekly decline since 2023.

Oil prices steady after Israel–Iran ceasefire and OPEC+ supply rumours

President Donald Trump said Friday he is calling off trade negotiations with Canada in retaliation for taxes impacting US tech firms, adding that Ottawa will learn of their new tariff rate within a week.Trump was referring to Canada's digital services tax, which was enacted last year and forecast to bring in Can$5.9 billion (US$4.2 billion) over five years.While the measure is not new, US service providers will be "on the hook for a multi-billion dollar payment in Canada" come June 30, noted the Computer &amp; Communications Industry Association recently.The three per cent tax applies to large or multinational companies such as Alphabet, Amazon and Meta that provide digital services to Canadians, and Washington has previously requested dispute settlement talks over the matter."Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump said in a post on his Truth Social platform Friday.Canada may have been spared some of Trump's sweeping duties, but it faces a separate tariff regime.Trump has also imposed steep levies on imports of steel, aluminum and autos.Last week, Canadian Prime Minister Mark Carney said Ottawa will adjust its 25 percent counter tariffs on US steel and aluminum -- in response to a doubling of US levies on the metals to 50 percent -- if a bilateral trade deal was not reached in 30 days."We will continue to conduct these complex negotiations in the best interest of Canadians," Carney said Friday, adding that he had not spoken to Trump on the day.US Treasury Secretary Scott Bessent told CNBC that Washington had hoped Carney's government would halt the tax "as a sign of goodwill."He now expects US Trade Representative Jamieson Greer to start a probe to determine the harm stemming from Canada's digital tax.<h2>China progress&nbsp;</h2>Trump's salvo targeting Canada came shortly after Washington and Beijing confirmed finalizing a framework to move forward on trade.A priority for Washington in talks with Beijing had been ensuring the supply of the rare earths essential for products including electric vehicles, hard drives and national defense equipment.China, which dominates global production of the elements, began requiring export licences in early April, a move widely viewed as a response to Trump's blistering tariffs.Both sides agreed after talks in Geneva in May to temporarily lower steep tit-for-tat duties on each other's products.China also committed to easing some non-tariff countermeasures but US officials later accused Beijing of violating the pact and slow-walking export license approvals for rare earths.They eventually agreed on a framework to move forward with their Geneva consensus, following talks in London this month.A White House official told AFP on Thursday that the Trump administration and China had "agreed to an additional understanding for a framework to implement the Geneva agreement."This clarification came after the US president told an event that Washington had inked a deal relating to trade with China, without providing details.Under the deal, China "will review and approve applications for the export control items that meet the requirements in accordance with the law," China's commerce ministry said."The US side will correspondingly cancel a series of restrictive measures against China," it added.<h2>Upcoming deals?</h2>Dozens of economies, although not China, face a July 9 deadline for steeper duties to kick in -- rising from a current 10 percent.It remains to be seen if countries will successfully reach agreements to avoid them before the deadline.On talks with the European Union, for example, Trump told an event at the White House on Friday: "We have the cards. We have the cards far more than they do."But Bessent said Washington could wrap up its agenda for trade deals by September, indicating more agreements could be concluded, although talks were likely to extend past July.Bessent told Fox Business there are 18 key partners Washington is focused on pacts with."If we can ink 10 or 12 of the important 18, there are another important 20 relationships, then I think we could have trade wrapped up by Labor Day," Bessent said, referring to the US holiday on September 1.Wall Street's major indexes finished at fresh records as markets cheered progress in US-China trade while shrugging off concerns about Canada.&nbsp;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.

"Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump said in a post on his Truth Social platform Friday.

President Donald Trump said Friday he is calling off trade negotiations with Canada in retaliation for taxes impacting US tech firms, adding that Ottawa will learn of their new tariff rate within a week. Trump was referring to Canada's digital services tax, which was enacted last year and forecast to bring in Can$5.9 billion (US$4.2 billion) over five years. While the measure is not new, US service providers will be "on the hook for a multi-billion dollar payment in Canada" come June 30, noted the Computer & Communications Industry Association recently. The three per cent tax applies to large or multinational companies such as Alphabet, Amazon and Meta that provide digital services to Canadians, and Washington has previously requested dispute settlement talks over the matter. "Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump said in a post on his Truth Social platform Friday. Canada may have been spared some of Trump's sweeping duties, but it faces a separate tariff regime. Trump has also imposed steep levies on imports of steel, aluminum and autos. Last week, Canadian Prime Minister Mark Carney said Ottawa will adjust its 25 percent counter tariffs on US steel and aluminum -- in response to a doubling of US levies on the metals to 50 percent -- if a bilateral trade deal was not reached in 30 days. "We will continue to conduct these complex negotiations in the best interest of Canadians," Carney said Friday, adding that he had not spoken to Trump on the day. US Treasury Secretary Scott Bessent told CNBC that Washington had hoped Carney's government would halt the tax "as a sign of goodwill." He now expects US Trade Representative Jamieson Greer to start a probe to determine the harm stemming from Canada's digital tax. China progress Trump's salvo targeting Canada came shortly after Washington and Beijing confirmed finalizing a framework to move forward on trade. A priority for Washington in talks with Beijing had been ensuring the supply of the rare earths essential for products including electric vehicles, hard drives and national defense equipment. China, which dominates global production of the elements, began requiring export licences in early April, a move widely viewed as a response to Trump's blistering tariffs. Both sides agreed after talks in Geneva in May to temporarily lower steep tit-for-tat duties on each other's products. China also committed to easing some non-tariff countermeasures but US officials later accused Beijing of violating the pact and slow-walking export license approvals for rare earths. They eventually agreed on a framework to move forward with their Geneva consensus, following talks in London this month. A White House official told AFP on Thursday that the Trump administration and China had "agreed to an additional understanding for a framework to implement the Geneva agreement." This clarification came after the US president told an event that Washington had inked a deal relating to trade with China, without providing details. Under the deal, China "will review and approve applications for the export control items that meet the requirements in accordance with the law," China's commerce ministry said. "The US side will correspondingly cancel a series of restrictive measures against China," it added. Upcoming deals? Dozens of economies, although not China, face a July 9 deadline for steeper duties to kick in -- rising from a current 10 percent. It remains to be seen if countries will successfully reach agreements to avoid them before the deadline. On talks with the European Union, for example, Trump told an event at the White House on Friday: "We have the cards. We have the cards far more than they do." But Bessent said Washington could wrap up its agenda for trade deals by September, indicating more agreements could be concluded, although talks were likely to extend past July. Bessent told Fox Business there are 18 key partners Washington is focused on pacts with. "If we can ink 10 or 12 of the important 18, there are another important 20 relationships, then I think we could have trade wrapped up by Labor Day," Bessent said, referring to the US holiday on September 1. Wall Street's major indexes finished at fresh records as markets cheered progress in US-China trade while shrugging off concerns about Canada. 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.

"Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump said in a post on his Truth Social platform Friday.

Trump ends trade negotiations with Canada in retaliation for tech tax

US President Donald Trump said Friday that he had terminated all trade discussions with Canada, over what he called “egregious tariffs” on a digital services tax on American tech companies. In a post on Truth Social, Trump referred to Canada as “a very difficult country to trade with” and said that its levy on tech firms—the first payment for which is due Monday—“is a direct and blatant attack on our Country.” “Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump wrote. “We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period.”&nbsp;Canada is the second-largest trading partner of the United States. Currently, the US has a tariff rate of 25% applied to non-USMCA goods that are imported from Canada. That excludes energy products, on which Trump has applied a 10% tariff rate. Canada also bears much of the brunt of Trump’s 50% tax on steel and aluminum imports, as it is the largest foreign supplier of these materials to the US.&nbsp;

Last week Canada’s finance minister said that he would not delay implementation of a digital services tax even as US trade talks continue. Any firm that makes more than $15 million off of Canadian internet users is subject to a 3% tax on those revenues.&nbsp;“We have just been informed that Canada, a very difficult Country to TRADE with, including the fact that they have charged our Farmers as much as 400% Tariffs, for years, on Dairy Products, 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 said on his Truth Social platform. “Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately.”&nbsp;Trump’s announcement reignites the trade war between the two neighbours, ending a period of some cordial relations following the election of Mark Carney as Canadian prime minister.

“Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump wrote. “We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period.”

US President Donald Trump said Friday that he had terminated all trade discussions with Canada, over what he called “egregious tariffs” on a digital services tax on American tech companies. In a post on Truth Social, Trump referred to Canada as “a very difficult country to trade with” and said that its levy on tech firms—the first payment for which is due Monday—“is a direct and blatant attack on our Country.” “Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump wrote. “We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period.” Canada is the second-largest trading partner of the United States. Currently, the US has a tariff rate of 25% applied to non-USMCA goods that are imported from Canada. That excludes energy products, on which Trump has applied a 10% tariff rate. Canada also bears much of the brunt of Trump’s 50% tax on steel and aluminum imports, as it is the largest foreign supplier of these materials to the US.

“Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump wrote. “We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period.”

Trump terminates trade talks with Canada, cites ‘egregious tariffs’ on US tech firms

Japan’s core consumer inflation in its capital slowed more than expected in June, driven by government relief on utility bills, but remained firmly above the central bank’s 2 per cent target, underscoring persistent price pressures in the world’s fourth-largest economy. Data released on Friday showed the Tokyo core consumer price index (CPI), which excludes volatile fresh food costs, rose 3.1 per cent in June compared with a year earlier. That was softer than May’s 3.6 per cent gain and below the median market forecast of 3.3 per cent, as per Reuters.&nbsp;The slowdown was largely attributed to the resumption of energy subsidies and temporary cuts to water charges in the city, aimed at helping households cope with soaring summer utility demand.<h2>Price pressures remain broad-based</h2>Despite the headline cooling, underlying price pressures in Japan’s export-reliant economy remain pronounced. A separate index that strips out both fresh food and fuel, a key measure closely watched by the Bank of Japan (BOJ) as an indicator of domestic demand-driven inflation also rose 3.1 per cent in June, after a 3.3 per cent increase in May.&nbsp;Marcel Thieliant, head of Asia-Pacific at Capital Economics, noted the underlying inflation trend remains well above the BOJ’s projections. “The slowdown in headline inflation in Tokyo in June partly reflects the resumption of energy subsidies,” he said. “With underlying inflation still running well ahead of the Bank of Japan’s forecasts, we still expect the Bank to hike rates in October.”<h2>Rising food costs hit households</h2>The data highlights the widening impact of inflation on Japanese households. The cost of food, excluding volatile items like vegetables, jumped 7.2 per cent in June from a year earlier, accelerating from May’s 6.9 per cent gain. Government figures showed particularly sharp increases for everyday staples: households in Tokyo paid 89 per cent more for rice than a year ago, 48 per cent more for a bar of chocolate, and 50 per cent more for a bag of coffee beans.&nbsp;Service-sector inflation, another area closely tracked by the BOJ, remained elevated at 2.1 per cent in June after hitting 2.2 per cent in the previous month, adding to evidence that price increases are spreading beyond imported raw materials to more domestically anchored sectors.<h2>Monetary policy under scrutiny</h2>The June inflation data will be a crucial factor in the Bank of Japan’s next policy meeting on July 30–31 when its board is set to issue fresh quarterly growth and price forecasts. Japan’s central bank, which ended its decade-long ultra-loose monetary policy last year, raised short-term interest rates to 0.5 per cent in January, the first increase since the era of negative rates began. Officials argued that inflation was on the verge of sustainably reaching the 2 per cent target.&nbsp;However, the economic backdrop has grown more complicated. The BOJ was forced to downgrade its growth forecasts in May, partly due to the impact of steep US tariffs that have threatened to hurt Japan’s export sector. While the BOJ has signalled readiness to continue raising rates if inflation risks intensify, the path ahead remains uncertain. Consumer inflation has exceeded the 2 per cent target for more than three years, as companies continue to pass on elevated raw material costs.Some central bank policymakers are already sounding a more hawkish note. Board member Naoki Tamura warned this week that the BOJ might need to act “decisively” if upside inflation risks strengthen. a sign that the pressure to normalise monetary policy further is unlikely to go away soon.&nbsp;&nbsp;For now, markets are watching carefully for signals from the central bank’s leadership, as Japan navigates the challenge of controlling inflation without stalling its still-fragile post-pandemic recovery.&nbsp;(With inputs from the agencies)&nbsp;

The Bank of Japan faces scrutiny ahead of its policy meeting, with potential interest rate hikes anticipated if inflation risks intensify. Economic complexities challenge efforts to manage inflation while supporting recovery.

Japan’s core consumer inflation in its capital slowed more than expected in June, driven by government relief on utility bills, but remained firmly above the central bank’s 2 per cent target, underscoring persistent price pressures in the world’s fourth-largest economy. Data released on Friday showed the Tokyo core consumer price index (CPI), which excludes volatile fresh food costs, rose 3.1 per cent in June compared with a year earlier. That was softer than May’s 3.6 per cent gain and below the median market forecast of 3.3 per cent, as per Reuters. The slowdown was largely attributed to the resumption of energy subsidies and temporary cuts to water charges in the city, aimed at helping households cope with soaring summer utility demand. Price pressures remain broad-based Despite the headline cooling, underlying price pressures in Japan’s export-reliant economy remain pronounced. A separate index that strips out both fresh food and fuel, a key measure closely watched by the Bank of Japan (BOJ) as an indicator of domestic demand-driven inflation also rose 3.1 per cent in June, after a 3.3 per cent increase in May. Marcel Thieliant, head of Asia-Pacific at Capital Economics, noted the underlying inflation trend remains well above the BOJ’s projections. “The slowdown in headline inflation in Tokyo in June partly reflects the resumption of energy subsidies,” he said. “With underlying inflation still running well ahead of the Bank of Japan’s forecasts, we still expect the Bank to hike rates in October.” Rising food costs hit households The data highlights the widening impact of inflation on Japanese households. The cost of food, excluding volatile items like vegetables, jumped 7.2 per cent in June from a year earlier, accelerating from May’s 6.9 per cent gain. Government figures showed particularly sharp increases for everyday staples: households in Tokyo paid 89 per cent more for rice than a year ago, 48 per cent more for a bar of chocolate, and 50 per cent more for a bag of coffee beans. Service-sector inflation, another area closely tracked by the BOJ, remained elevated at 2.1 per cent in June after hitting 2.2 per cent in the previous month, adding to evidence that price increases are spreading beyond imported raw materials to more domestically anchored sectors. Monetary policy under scrutiny The June inflation data will be a crucial factor in the Bank of Japan’s next policy meeting on July 30–31 when its board is set to issue fresh quarterly growth and price forecasts. Japan’s central bank, which ended its decade-long ultra-loose monetary policy last year, raised short-term interest rates to 0.5 per cent in January, the first increase since the era of negative rates began. Officials argued that inflation was on the verge of sustainably reaching the 2 per cent target. However, the economic backdrop has grown more complicated. The BOJ was forced to downgrade its growth forecasts in May, partly due to the impact of steep US tariffs that have threatened to hurt Japan’s export sector. While the BOJ has signalled readiness to continue raising rates if inflation risks intensify, the path ahead remains uncertain. Consumer inflation has exceeded the 2 per cent target for more than three years, as companies continue to pass on elevated raw material costs. Some central bank policymakers are already sounding a more hawkish note. Board member Naoki Tamura warned this week that the BOJ might need to act “decisively” if upside inflation risks strengthen. a sign that the pressure to normalise monetary policy further is unlikely to go away soon. For now, markets are watching carefully for signals from the central bank’s leadership, as Japan navigates the challenge of controlling inflation without stalling its still-fragile post-pandemic recovery. (With inputs from the agencies)

Japan's core consumer inflation in Tokyo slowed to 3.1% in June, down from May's 3.6%, influenced by government utility bill relief. This figure remains above the central bank's 2% target, reflecting ongoing price pressures.

Japan’s core inflation slows in Tokyo but stays above BOJ’s 2% target

The Trump Organisation’s much-touted “Made in the USA” promise for its new smartphone is facing fresh scrutiny after references to American production quietly vanished from its website. The shift in marketing language has prompted questions over whether Donald Trump’s brand can truly deliver a fully US-built phone—something experts warn is far from realistic with today’s global supply chains.<h2>Website wording quietly changes</h2>According to the BBC, the Trump T1 phone launched on 16 June with a clear “Made in the USA” tagline on its website. But by mid-week, that phrase was gone. Instead, the site now promotes an “American-Proud Design” and says the phone is “brought to life right here in the USA” with “American hands behind every device.”A banner that once read “our MADE IN THE USA T1 Phone” was changed to simply “the new T1 phone,” as first reported by The Verge.&nbsp;Despite these edits, Trump Mobile insists nothing has changed about its plans. A spokesperson told the BBC: “Speculation to the contrary is simply inaccurate,” maintaining that the phones would still be produced in America. The company also encouraged customers to sign up immediately for its service using their existing devices while waiting for the T1’s release later this year.<h2>Experts doubt feasibility of US-only smartphone</h2>Industry experts remain sceptical about the promise of a fully American-made smartphone. As per the BBC, Professor Tinglong Dai of Johns Hopkins University said the Trump team didn’t even appear to have a working prototype, calling the idea of fully domestic production “extremely unlikely” and requiring “a miracle.” Leo Gebbie, a technology analyst at CCS Insight, told the BBC that the United States “simply does not have the high-tech supply chain” to make smartphones entirely domestically, especially on an accelerated timeline. He suggested the most realistic scenario would involve assembling imported parts in the US to justify a “Made in USA” label.&nbsp;As reported by CNBC, even Apple—under years of political pressure—has struggled to move significant iPhone production to the US. Much of Apple’s assembly remains in China, Vietnam and India, despite Donald Trump’s past calls to shift manufacturing home.<h2>Trump’s record on manufacturing pressure</h2>The controversy also reflects Trump’s long history of pushing for “America First” manufacturing. In May, he wrote on Truth Social that he had “long ago informed Tim Cook of Apple” that iPhones sold in the US should be built domestically and not in India or elsewhere.&nbsp;During his presidency, Trump threatened to impose 25 per cent tariffs on Apple if it did not relocate production to the United States, as per Reuters. However, such threats had limited effect. Dan Ives, an analyst at Wedbush Securities, described the expectation as a “fairy tale that is not feasible” given Apple’s massive, globalised supply chain.<h2>Trump Mobile says vision remains</h2>Despite dropping the explicit “Made in the USA” tagline, the Trump Mobile team says its long-term goal remains the same. Eric Trump, who joined Donald Trump Jr in launching the mobile plan earlier this month, told a podcast that “eventually, all the phones can be built in the United States of America.” As per the BBC, the Trump Mobile website now focuses on promoting its service plans and encouraging Americans to switch immediately, while promising to launch the T1 phone later this year.&nbsp;For now, the subtle shift in wording has drawn new attention to the gap between the marketing promise of an all-American smartphone and the complicated, global reality of how such devices are actually made.&nbsp;(With inputs from the agencies)&nbsp;

Initially launched with a clear American production tagline, the site now highlights American-Proud Design. Experts question the feasibility of fully US made smartphones due to global supply chain complexities. 

The Trump Organisation’s much-touted “Made in the USA” promise for its new smartphone is facing fresh scrutiny after references to American production quietly vanished from its website. The shift in marketing language has prompted questions over whether Donald Trump’s brand can truly deliver a fully US-built phone—something experts warn is far from realistic with today’s global supply chains. Website wording quietly changes According to the BBC, the Trump T1 phone launched on 16 June with a clear “Made in the USA” tagline on its website. But by mid-week, that phrase was gone. Instead, the site now promotes an “American-Proud Design” and says the phone is “brought to life right here in the USA” with “American hands behind every device.” A banner that once read “our MADE IN THE USA T1 Phone” was changed to simply “the new T1 phone,” as first reported by The Verge. Despite these edits, Trump Mobile insists nothing has changed about its plans. A spokesperson told the BBC: “Speculation to the contrary is simply inaccurate,” maintaining that the phones would still be produced in America. The company also encouraged customers to sign up immediately for its service using their existing devices while waiting for the T1’s release later this year. Experts doubt feasibility of US-only smartphone Industry experts remain sceptical about the promise of a fully American-made smartphone. As per the BBC, Professor Tinglong Dai of Johns Hopkins University said the Trump team didn’t even appear to have a working prototype, calling the idea of fully domestic production “extremely unlikely” and requiring “a miracle.” Leo Gebbie, a technology analyst at CCS Insight, told the BBC that the United States “simply does not have the high-tech supply chain” to make smartphones entirely domestically, especially on an accelerated timeline. He suggested the most realistic scenario would involve assembling imported parts in the US to justify a “Made in USA” label. As reported by CNBC, even Apple—under years of political pressure—has struggled to move significant iPhone production to the US. Much of Apple’s assembly remains in China, Vietnam and India, despite Donald Trump’s past calls to shift manufacturing home. Trump’s record on manufacturing pressure The controversy also reflects Trump’s long history of pushing for “America First” manufacturing. In May, he wrote on Truth Social that he had “long ago informed Tim Cook of Apple” that iPhones sold in the US should be built domestically and not in India or elsewhere. During his presidency, Trump threatened to impose 25 per cent tariffs on Apple if it did not relocate production to the United States, as per Reuters. However, such threats had limited effect. Dan Ives, an analyst at Wedbush Securities, described the expectation as a “fairy tale that is not feasible” given Apple’s massive, globalised supply chain. Trump Mobile says vision remains Despite dropping the explicit “Made in the USA” tagline, the Trump Mobile team says its long-term goal remains the same. Eric Trump, who joined Donald Trump Jr in launching the mobile plan earlier this month, told a podcast that “eventually, all the phones can be built in the United States of America.” As per the BBC, the Trump Mobile website now focuses on promoting its service plans and encouraging Americans to switch immediately, while promising to launch the T1 phone later this year. For now, the subtle shift in wording has drawn new attention to the gap between the marketing promise of an all-American smartphone and the complicated, global reality of how such devices are actually made. (With inputs from the agencies)

The Trump Organisation's "Made in the USA" promise for its T1 smartphone has come under scrutiny after related references were removed from its website.

‘Made in USA’ missing from Trump phone website: What happened?

Oil prices are heading for their worst weekly decline since March 2023, with traders stripping out any risk premium built up over fears of a wider Israel–Iran conflict in West Asia. Despite last week’s dramatic escalation, markets see no significant supply disruption as a ceasefire holds, pushing benchmark crude prices back to pre-conflict levels.<h2>War premium fades as ceasefire holds</h2>As per Reuters, Brent crude futures rose 35 cents, or 0.52 per cent, to US$68.08 a barrel in early trade on Friday, while US West Texas Intermediate (WTI) gained 40 cents, or 0.61 per cent, to US$65.64. Yet both benchmarks remain on track for a weekly fall of about 12 per cent—their steepest drop in more than two years. Prices had jumped to five-month highs earlier this week after US strikes targeted Iranian nuclear facilities over the weekend, fuelling fears of an all-out war that could threaten West Asian oil exports.&nbsp;&nbsp;But those gains quickly evaporated after US President Donald Trump announced a ceasefire deal on Tuesday, easing fears of a supply shock. As per Reuters, traders swiftly priced out the geopolitical risk that had driven the rally.<h2>Analysts see oversupply despite conflict</h2>According to Reuters, analysts note that while tensions remain, there is no visible impact on physical oil supply so far. Macquarie analysts wrote in a note on Thursday: “Absent the threat of significant supply disruption, we still view oil as fundamentally oversupplied, with our 2025 balances indicating a roughly 2.1 million barrels per day surplus.”&nbsp;Macquarie has slightly raised its WTI price forecast by US$2 to account for a modest ongoing geopolitical risk premium. But the broader outlook remains bearish, with global supplies seen as ample and OPEC+ still holding spare production capacity.<h2>US inventory draw offers limited support</h2>Even as the war premium vanished, oil prices found some support midweek from signs of tightening US stockpiles. As per Reuters, US government data showed crude oil and fuel inventories declined in the most recent reporting week, reflecting higher refinery utilisation and demand. Phil Flynn, senior analyst at the Price Futures Group, told Reuters the market was “starting to digest the fact that crude oil inventories are very tight all of a sudden.” Despite that, the bullish impulse proved limited, with the broader market narrative dominated by relief that West Asian energy infrastructure remained unharmed.&nbsp;Beyond the ceasefire in West Asia, traders are also watching US monetary policy for clues about demand. As reported by the Wall Street Journal, President Trump may announce his choice for the next Federal Reserve chair earlier than usual—a move that has fuelled market bets on possible interest rate cuts. Lower US rates could typically stimulate economic activity and energy demand, offering a potential tailwind for oil prices.&nbsp;&nbsp;But for now, the dominant factor this week has been the unwinding of war-driven price gains, as traders conclude the Israel–Iran ceasefire has largely defused the immediate threat of major supply disruptions.&nbsp;(With inputs from the agencies)&nbsp;

Brent crude rose slightly to $68.08, while WTI reached $65.64, but both are on track for a 12% drop. Analysts indicate an oversupply persists despite geopolitical tensions, and US inventory draws provided limited support. 

Oil prices are heading for their worst weekly decline since March 2023, with traders stripping out any risk premium built up over fears of a wider Israel–Iran conflict in West Asia. Despite last week’s dramatic escalation, markets see no significant supply disruption as a ceasefire holds, pushing benchmark crude prices back to pre-conflict levels. War premium fades as ceasefire holds As per Reuters, Brent crude futures rose 35 cents, or 0.52 per cent, to US$68.08 a barrel in early trade on Friday, while US West Texas Intermediate (WTI) gained 40 cents, or 0.61 per cent, to US$65.64. Yet both benchmarks remain on track for a weekly fall of about 12 per cent—their steepest drop in more than two years. Prices had jumped to five-month highs earlier this week after US strikes targeted Iranian nuclear facilities over the weekend, fuelling fears of an all-out war that could threaten West Asian oil exports. But those gains quickly evaporated after US President Donald Trump announced a ceasefire deal on Tuesday, easing fears of a supply shock. As per Reuters, traders swiftly priced out the geopolitical risk that had driven the rally. Analysts see oversupply despite conflict According to Reuters, analysts note that while tensions remain, there is no visible impact on physical oil supply so far. Macquarie analysts wrote in a note on Thursday: “Absent the threat of significant supply disruption, we still view oil as fundamentally oversupplied, with our 2025 balances indicating a roughly 2.1 million barrels per day surplus.” Macquarie has slightly raised its WTI price forecast by US$2 to account for a modest ongoing geopolitical risk premium. But the broader outlook remains bearish, with global supplies seen as ample and OPEC+ still holding spare production capacity. US inventory draw offers limited support Even as the war premium vanished, oil prices found some support midweek from signs of tightening US stockpiles. As per Reuters, US government data showed crude oil and fuel inventories declined in the most recent reporting week, reflecting higher refinery utilisation and demand. Phil Flynn, senior analyst at the Price Futures Group, told Reuters the market was “starting to digest the fact that crude oil inventories are very tight all of a sudden.” Despite that, the bullish impulse proved limited, with the broader market narrative dominated by relief that West Asian energy infrastructure remained unharmed. Beyond the ceasefire in West Asia, traders are also watching US monetary policy for clues about demand. As reported by the Wall Street Journal, President Trump may announce his choice for the next Federal Reserve chair earlier than usual—a move that has fuelled market bets on possible interest rate cuts. Lower US rates could typically stimulate economic activity and energy demand, offering a potential tailwind for oil prices. But for now, the dominant factor this week has been the unwinding of war-driven price gains, as traders conclude the Israel–Iran ceasefire has largely defused the immediate threat of major supply disruptions. (With inputs from the agencies)

Oil prices face their steepest weekly decline since March 2023, dropping due to reduced risk premiums as a ceasefire holds between Israel and Iran.

Oil prices face steepest weekly fall in two years as West Asia war premium fades

India is overhauling its income tax return (ITR) rules for Assessment Year 2025–26, signalling its most serious effort in years to crack down on tax evasion while promising simpler compliance for honest taxpayers. The new framework combines a mix of relief measures such as extended deadlines and simpler forms for small investors, with stricter disclosure requirements and severe penalties for those attempting to game the system.<h2>What are the changes?</h2>One of the most prominent changes is the extension of the filing deadline for non-auditable taxpayers, which includes most salaried employees and pensioners. The new due date is 15 September 2025, replacing the usual 31 July deadline. However, this extended window comes with an important condition: taxpayers must pay their entire tax liability, including self-assessment tax, by 31 July to avoid penal interest. As per The Economic Times, the government designed this dual timeline to offer extra time for filing without sacrificing timely revenue collection. India’s tax authorities are also stepping up enforcement. Taxpayers who underreport or misreport their income can now face penalties of up to 200 per cent of the evaded tax, along with interest charges. According to The Economic Times, the tax department plans to enforce these penalties more rigorously this year, aided by better data validation and cross-verification tools.&nbsp;Looking ahead, the government is preparing an even more ambitious overhaul of the entire tax system. As per Reuters, the proposed Income-Tax Bill, 2025, will replace the Income Tax Act of 1961 from 1 April 2026. The new law is intended to simplify legal language, reduce litigation and even decriminalise certain offences such as non-filing of returns, making them non-cognisable.<h2>New tax regime</h2>The government is also doubling down on its push for the “new tax regime” by making it the default option for most taxpayers. Under this regime, the basic tax-free income threshold rises to ₹12 lakh, with an additional standard deduction of ₹75,000 for salaried employees, effectively exempting income up to ₹12.75 lakh from tax. This move reportedly aims to simplify the tax structure, offering lower rates in exchange for forgoing most traditional exemptions and deductions.&nbsp;However, taxpayers who prefer the old, deduction-heavy system are still allowed to opt out of the new regime by submitting Form 10-IEA. The government hopes that by making the simpler system the default, more people will switch to it, reducing complexity and compliance errors over time.<h2>Types of ITR forms and criteria</h2>The forms themselves have also been redesigned for this year. The ITR-1 (Sahaj) and ITR-4 (Sugam) forms now make filing easier for small taxpayers, particularly those with Long Term Capital Gains (LTCG) of up to ₹1.25 lakh. These investors can now report such gains directly in ITR-1, sparing them from having to use more complex forms.&nbsp;Please find below the detailed breakdown of the ITR forms and their key features.&nbsp;

<figure class="table"><table><tbody><tr><td>ITR Form</td><td>Who Should Use It</td><td>Key Features</td></tr><tr><td>ITR-1 (Sahaj)</td><td>Resident individuals with income up to ₹50 lakh</td><td>Salary/pension, one house property, certain LTCG, other sources</td></tr><tr><td>ITR-2</td><td>Individuals/HUFs over ₹50 lakh</td><td>Multiple properties, capital gains; no business income</td></tr><tr><td>ITR-3</td><td>Individuals/HUFs with business or professional income</td><td>Includes salary, property, capital gains, other sources</td></tr><tr><td>ITR-4 (Sugam)</td><td>Small businesses, presumptive income scheme</td><td>Up to ₹50 lakh, simplified filing</td></tr><tr><td>ITR-5</td><td>Firms, LLPs, AOPs, BOIs</td><td>For partnerships and associations</td></tr><tr><td>ITR-6</td><td>Companies (non-charitable)</td><td>For companies not claiming Section 11 exemption</td></tr><tr><td>ITR-7</td><td>Trusts, political parties, certain institutions</td><td>Mandatory under Sections 139(4A–4D)</td></tr></tbody></table></figure>Source: Income Tax Department

At the same time, the government has introduced tighter disclosure requirements for those claiming deductions under the old regime. According to the Times of India, taxpayers must now provide details such as insurer names and policy numbers for Section 80C deductions, account or loan numbers for housing loan interest, landlord details for HRA exemptions, and registration details for political donations. This granular approach is intended to curb fake or inflated claims and ensure faster, more accurate refunds. For those with complex incomes, such as property sales or large equity transactions, the ITR-2 and ITR-3 forms require even more detailed reporting. Taxpayers must split LTCG earned before and after 23 July 2024, and buyback proceeds must be disclosed both as “nil consideration” in the capital gains schedule and under “Income from Other Sources.” The government has also raised the threshold for mandatory reporting of assets and liabilities from ₹50 lakh to ₹1 crore, further tightening scrutiny on high-net-worth individuals, as detailed by India Briefing.&nbsp;India’s new ITR rules send a clear signal: while compliance is being made easier for honest taxpayers, evasion will become riskier and far more expensive. For millions of taxpayers, the message is simple, pay on time, choose your regime carefully, keep records ready, and disclose fully to avoid the cost of non-compliance.&nbsp;(With inputs from the agencies)&nbsp;

Key changes include extending the filing deadline for non-auditable taxpayers to 15 September 2025, with mandatory tax payment by 31 July to avoid penalties. Stricter penalties for income misreporting, up to 200% of evaded taxes will be enforced. 

India is overhauling its income tax return (ITR) rules for Assessment Year 2025–26, signalling its most serious effort in years to crack down on tax evasion while promising simpler compliance for honest taxpayers. The new framework combines a mix of relief measures such as extended deadlines and simpler forms for small investors, with stricter disclosure requirements and severe penalties for those attempting to game the system. What are the changes? One of the most prominent changes is the extension of the filing deadline for non-auditable taxpayers, which includes most salaried employees and pensioners. The new due date is 15 September 2025, replacing the usual 31 July deadline. However, this extended window comes with an important condition: taxpayers must pay their entire tax liability, including self-assessment tax, by 31 July to avoid penal interest. As per The Economic Times, the government designed this dual timeline to offer extra time for filing without sacrificing timely revenue collection. India’s tax authorities are also stepping up enforcement. Taxpayers who underreport or misreport their income can now face penalties of up to 200 per cent of the evaded tax, along with interest charges. According to The Economic Times, the tax department plans to enforce these penalties more rigorously this year, aided by better data validation and cross-verification tools. Looking ahead, the government is preparing an even more ambitious overhaul of the entire tax system. As per Reuters, the proposed Income-Tax Bill, 2025, will replace the Income Tax Act of 1961 from 1 April 2026. The new law is intended to simplify legal language, reduce litigation and even decriminalise certain offences such as non-filing of returns, making them non-cognisable. New tax regime The government is also doubling down on its push for the “new tax regime” by making it the default option for most taxpayers. Under this regime, the basic tax-free income threshold rises to ₹12 lakh, with an additional standard deduction of ₹75,000 for salaried employees, effectively exempting income up to ₹12.75 lakh from tax. This move reportedly aims to simplify the tax structure, offering lower rates in exchange for forgoing most traditional exemptions and deductions. However, taxpayers who prefer the old, deduction-heavy system are still allowed to opt out of the new regime by submitting Form 10-IEA. The government hopes that by making the simpler system the default, more people will switch to it, reducing complexity and compliance errors over time. Types of ITR forms and criteria The forms themselves have also been redesigned for this year. The ITR-1 (Sahaj) and ITR-4 (Sugam) forms now make filing easier for small taxpayers, particularly those with Long Term Capital Gains (LTCG) of up to ₹1.25 lakh. These investors can now report such gains directly in ITR-1, sparing them from having to use more complex forms. Please find below the detailed breakdown of the ITR forms and their key features.

India is reforming income tax return rules for Assessment Year 2025–26 to combat tax evasion while easing compliance for honest taxpayers.

India’s new ITR rules: What taxpayers need to know about higher penalties, new forms, and extended deadlines

China today announced it had “confirmed details” of a trade deal with the United States, signalling a potential pause in months of spiralling tariffs, export controls and diplomatic recriminations.&nbsp;Beijing’s Commerce Ministry said on 27 June that both sides had agreed to lift certain “restrictive measures” while China would “review and approve” controlled export items. “It is hoped that the United States and China will meet each other halfway,” the ministry added, calling for “healthy, stable and sustainable development” of trade ties. This statement followed US President Donald Trump’s reveal at the White House on 26 June, where he declared the deal “done”—though neither side released full details, and the White House described negotiations as “ongoing but constructive.” Markets rose on hopes the worst escalation could be avoided.&nbsp;Below is a detailed timeline of the 2025 trade conflict, showing how the world’s two largest economies veered toward a damaging trade war before scrambling for a deal.<h2>February–March 2025: Trump revives tariff threats</h2>6 February 2025: At a rally speech, President Trump vowed “across-the-board” 60 per cent tariffs on all Chinese imports if talks failed. As per Reuters, he accused Beijing of “decades of cheating” and promised to restore US manufacturing.&nbsp;14 February 2025: The Office of the US Trade Representative (USTR) launched a formal review of Section 301 tariffs, aiming to hike rates on key consumer goods like electronics and toys by mid-year, as per Bloomberg.&nbsp;20 February 2025: China’s Ministry of Commerce warned of “strong countermeasures,” signalling it could target US agricultural exports or impose licensing restrictions on critical minerals.&nbsp;2 March 2025: Trump reiterated the tariff plan at CPAC, saying “China will pay” and promising final action by summer, as per Time Magazine.<h2>April 2025: Tech war and tariff escalation</h2>2 April 2025: Trump formally imposed a blanket 10 per cent tariff on all Chinese imports, scrapping the de minimis exemption for small parcels, arguing e-commerce routes were used to funnel fentanyl into the US, as per Reuters.&nbsp;4 April 2025: The US expanded export controls on Chinese AI chip firms, closing licensing “loopholes” for Nvidia’s advanced accelerators&nbsp;&nbsp;4 April 2025: China retaliated with 34 per cent duties and imposed export restrictions on rare earth minerals essential for electronics, EVs, and defence. As per Reuters, these moves threatened to choke US tech and defence supply chains.&nbsp;9 April 2025: Trump dramatically escalated tariffs to 145 per cent on Chinese imports, branding it “Liberation Day” in a proclamation meant to signal economic independence.&nbsp;10 April 2025: China filed a formal WTO complaint, accusing Washington of “economic coercion” and “unilateral bullying," as per Reuters.&nbsp;19 April 2025: Bloomberg reported the US prepared even tighter controls on lithography tools and chipmaking software.&nbsp;23 April 2025: China announced expanded export licensing rules on gallium and germanium products, slowing global supply chains, as per Reuters.<h2>May 2025: A fragile Geneva truce, then new clashes</h2>12 May 2025: At WTO-brokered talks in Geneva, both sides agreed to lower tariffs temporarily (US to 30 per cent, China to 10 per cent) in a fragile 90-day truce.But tensions soon resurfaced:&nbsp;29 May 2025: The US imposed new export curbs on AI chips, semiconductor design software, and specialty chemicals, citing national security risks.&nbsp;&nbsp;30 May 2025: Trump accused China of breaching the Geneva truce and threatened further escalation.<h2>June 2025: Threats, negotiations, and a partial deal</h2>2 June 2025: Beijing dismissed Trump’s claims as “groundless” and vowed “forceful countermeasures,” with Reuters reporting fears of a new tariff wave.&nbsp;3 June 2025: US Treasury Secretary met China’s Vice Premier in Singapore to “restart communication channels,” but talks ended with both sides restating hardline positions, as per Reuters.&nbsp;9–10 June 2025: High-level US and Chinese negotiators held marathon talks in London aiming to finalise the Geneva framework. According to Reuters, officials described the sessions as “putting meat on the bones” of the May truce, trying to lock in details on tariff reductions, tech restrictions, and rare earth shipments.&nbsp;10 June 2025: The US Commerce Department blacklisted two more Chinese AI firms for alleged military links. China condemned the move as “illegal sanctions," as per Bloomberg.&nbsp;11 June 2025: Following the London talks, Trump said that the US had secured concessions on rare earth exports and other sticking points. As quoted by CNBC, he told the audience: “We made a great deal with China. We’re very happy with it. And hopefully they are too.”&nbsp;17 June 2025: Chinese state media reported “progress” in backchannel discussions. The US refused to confirm any deal, underscoring deep mistrust.&nbsp;20 June 2025: Reuters reported Trump advisors were weighing delaying the 60 per cent tariff implementation by one month to allow “final deal talks.”<h2>26–27 June 2025: Two announcements, no full details</h2>26 June 2025: Trump declared at the White House that the deal was “done,” saying the US had secured partial tariff rollbacks, Chinese pledges to buy American farm goods, and promises to ease certain tech curbs. However, no full text was released, and the White House described negotiations as “ongoing but constructive", as per Reuters.&nbsp;27 June 2025: China’s Ministry of Commerce announced it had “confirmed details” of the deal, saying Washington would lift “restrictive measures” while Beijing would “review and approve” export-controlled items. The statement called for “healthy, stable and sustainable development” in China-US economic relations, as per Reuters.<h2>What lies ahead?</h2>Despite these announcements, analysts warn the underlying tensions are far from resolved. Issues such as technology transfer restrictions, intellectual property enforcement, and China’s industrial policy remain persistent sticking points.&nbsp;According to Bloomberg, US manufacturers are accelerating supply chain diversification away from China, while Beijing is pushing its self-reliance strategy. For now, the “confirmed details” of this deal may pause the immediate tariff threats, but the fundamental drivers of the trade war remain in place, promising further rounds of confrontation even if this fragile truce holds.&nbsp;(With inputs from the agencies)&nbsp;

This followed US President Trump declaration of the deal being, although full details were not disclosed, with negotiations described as ongoing. 

China today announced it had “confirmed details” of a trade deal with the United States, signalling a potential pause in months of spiralling tariffs, export controls and diplomatic recriminations. Beijing’s Commerce Ministry said on 27 June that both sides had agreed to lift certain “restrictive measures” while China would “review and approve” controlled export items. “It is hoped that the United States and China will meet each other halfway,” the ministry added, calling for “healthy, stable and sustainable development” of trade ties. This statement followed US President Donald Trump’s reveal at the White House on 26 June, where he declared the deal “done”—though neither side released full details, and the White House described negotiations as “ongoing but constructive.” Markets rose on hopes the worst escalation could be avoided. Below is a detailed timeline of the 2025 trade conflict, showing how the world’s two largest economies veered toward a damaging trade war before scrambling for a deal. February–March 2025: Trump revives tariff threats 6 February 2025: At a rally speech, President Trump vowed “across-the-board” 60 per cent tariffs on all Chinese imports if talks failed. As per Reuters, he accused Beijing of “decades of cheating” and promised to restore US manufacturing. 14 February 2025: The Office of the US Trade Representative (USTR) launched a formal review of Section 301 tariffs, aiming to hike rates on key consumer goods like electronics and toys by mid-year, as per Bloomberg. 20 February 2025: China’s Ministry of Commerce warned of “strong countermeasures,” signalling it could target US agricultural exports or impose licensing restrictions on critical minerals. 2 March 2025: Trump reiterated the tariff plan at CPAC, saying “China will pay” and promising final action by summer, as per Time Magazine. April 2025: Tech war and tariff escalation 2 April 2025: Trump formally imposed a blanket 10 per cent tariff on all Chinese imports, scrapping the de minimis exemption for small parcels, arguing e-commerce routes were used to funnel fentanyl into the US, as per Reuters. 4 April 2025: The US expanded export controls on Chinese AI chip firms, closing licensing “loopholes” for Nvidia’s advanced accelerators 4 April 2025: China retaliated with 34 per cent duties and imposed export restrictions on rare earth minerals essential for electronics, EVs, and defence. As per Reuters, these moves threatened to choke US tech and defence supply chains. 9 April 2025: Trump dramatically escalated tariffs to 145 per cent on Chinese imports, branding it “Liberation Day” in a proclamation meant to signal economic independence. 10 April 2025: China filed a formal WTO complaint, accusing Washington of “economic coercion” and “unilateral bullying," as per Reuters. 19 April 2025: Bloomberg reported the US prepared even tighter controls on lithography tools and chipmaking software. 23 April 2025: China announced expanded export licensing rules on gallium and germanium products, slowing global supply chains, as per Reuters. May 2025: A fragile Geneva truce, then new clashes 12 May 2025: At WTO-brokered talks in Geneva, both sides agreed to lower tariffs temporarily (US to 30 per cent, China to 10 per cent) in a fragile 90-day truce. But tensions soon resurfaced: 29 May 2025: The US imposed new export curbs on AI chips, semiconductor design software, and specialty chemicals, citing national security risks. 30 May 2025: Trump accused China of breaching the Geneva truce and threatened further escalation. June 2025: Threats, negotiations, and a partial deal 2 June 2025: Beijing dismissed Trump’s claims as “groundless” and vowed “forceful countermeasures,” with Reuters reporting fears of a new tariff wave. 3 June 2025: US Treasury Secretary met China’s Vice Premier in Singapore to “restart communication channels,” but talks ended with both sides restating hardline positions, as per Reuters. 9–10 June 2025: High-level US and Chinese negotiators held marathon talks in London aiming to finalise the Geneva framework. According to Reuters, officials described the sessions as “putting meat on the bones” of the May truce, trying to lock in details on tariff reductions, tech restrictions, and rare earth shipments. 10 June 2025: The US Commerce Department blacklisted two more Chinese AI firms for alleged military links. China condemned the move as “illegal sanctions," as per Bloomberg. 11 June 2025: Following the London talks, Trump said that the US had secured concessions on rare earth exports and other sticking points. As quoted by CNBC, he told the audience: “We made a great deal with China. We’re very happy with it. And hopefully they are too.” 17 June 2025: Chinese state media reported “progress” in backchannel discussions. The US refused to confirm any deal, underscoring deep mistrust. 20 June 2025: Reuters reported Trump advisors were weighing delaying the 60 per cent tariff implementation by one month to allow “final deal talks.” 26–27 June 2025: Two announcements, no full details 26 June 2025: Trump declared at the White House that the deal was “done,” saying the US had secured partial tariff rollbacks, Chinese pledges to buy American farm goods, and promises to ease certain tech curbs. However, no full text was released, and the White House described negotiations as “ongoing but constructive", as per Reuters. 27 June 2025: China’s Ministry of Commerce announced it had “confirmed details” of the deal, saying Washington would lift “restrictive measures” while Beijing would “review and approve” export-controlled items. The statement called for “healthy, stable and sustainable development” in China-US economic relations, as per Reuters. What lies ahead? Despite these announcements, analysts warn the underlying tensions are far from resolved. Issues such as technology transfer restrictions, intellectual property enforcement, and China’s industrial policy remain persistent sticking points. According to Bloomberg, US manufacturers are accelerating supply chain diversification away from China, while Beijing is pushing its self-reliance strategy. For now, the “confirmed details” of this deal may pause the immediate tariff threats, but the fundamental drivers of the trade war remain in place, promising further rounds of confrontation even if this fragile truce holds. (With inputs from the agencies)

China announced confirmation of a trade deal with the US, suggesting a potential pause in escalating tariffs and controls.

China ‘confirms details’ of trade deal with United States: A timeline of 2025 tensions and talks

US President Donald Trump has fuelled fresh speculation about an imminent “very big” trade deal with India, weeks after top negotiators from both countries wrapped up closed-door talks aimed at slashing tariffs and expanding market access.&nbsp;Speaking at the ‘Big Beautiful Event’ at the White House on Thursday, Trump told supporters: “We just signed with China yesterday. We are having some great deals. We have one coming up, maybe with India. Very big one,” as quoted by Reuters. Trump said the United States would not sign trade deals with every nation indiscriminately. “We’re not going to make deals with everybody. Some we are just going to send them a letter, say thank you very much. You are to pay 25, 35, 45 per cent. That’s the easy way to do it,” he said, emphasising that his team preferred forging substantial bilateral pacts over blanket tariff threats, as reported by Reuters.&nbsp;<h2>High-stakes negotiations target $500 billion trade milestone</h2>The comments follow intensive four-day negotiations held earlier this month between US and Indian trade teams in New Delhi. Talks focused on expanding market access for industrial and agricultural products, tariff reductions, and tackling non-tariff barriers.According to people familiar with the negotiations, the goal is to transform annual bilateral trade from its current level of around $190 billion to $500 billion by 2030, a figure Indian and US officials have cited repeatedly as a shared ambition.&nbsp;Union Commerce and Industry Minister Piyush Goyal said after the latest round of talks: “PM Modi and US President Trump met in February 2025… Both our leaders have decided to enter into a bilateral trade agreement which will be mutually beneficial for both the economies, businesses on both sides and the people of both countries. We are negotiating to make a nice, fair, equitable, and balanced agreement to promote business,” as quoted by Reuters.Earlier this month, US Commerce Secretary Howard Lutnick also signalled optimism that a deal could soon be finalised, saying both sides had found “common ground” to meet their strategic and economic interests, as per Reuters.&nbsp;<h2>India–US trade: A crucial and growing partnership</h2>The United States is India’s single largest trading partner. According to India’s Ministry of Commerce and Industry, bilateral goods and services trade between the two countries reached $191 billion in 2023–24, with Indian exports to the US valued at over $118 billion and imports from the US at around $73 billion.The US accounted for roughly 18 per cent of India’s total exports in 2023–24, making it India’s top export destination. Key Indian exports include pharmaceuticals, textiles, engineering goods, gems and jewellery, and software services.&nbsp;Conversely, the US is a major supplier of crude oil, LNG, advanced machinery, aircraft, defence equipment and agricultural products to India. US energy exports to India alone exceeded $10 billion in 2023, as per the US Energy Information Administration.Trade in services also forms a vital component of the economic relationship, with India’s IT sector providing services worth over $40 billion annually to US clients, according to Nasscom data.&nbsp;Investment ties are similarly robust. US foreign direct investment in India stood at $67 billion as of end-2023, while Indian companies have invested over $40 billion in the US, generating thousands of American jobs.<h2>Talks come amid tariff threats</h2>Trump’s comments also underline the high-stakes backdrop for the negotiations. The US President has threatened to impose tariffs of up to 45 per cent on countries unwilling to strike new trade deals with Washington.&nbsp;While the Biden-era Phase One agreement with India had kept tariff escalation largely at bay, Trump’s second-term approach has seen renewed threats of sweeping duties unless partners sign what he calls “fair and reciprocal” deals.Indian officials see a deal with the US as critical to securing market stability and boosting exports amid a challenging global environment marked by trade fragmentation and geopolitical tensions.&nbsp;For the United States, expanding trade ties with India is seen as a key element of its Indo-Pacific strategy, offering a counterweight to China’s economic influence in the region.<h2>A path forward?</h2>Negotiators from both sides remain tight-lipped about precise timelines or the final shape of any agreement. But Trump’s remarks suggest both governments want to signal progress ahead of their next planned high-level meeting.&nbsp;With India–US trade already on a record-setting trajectory, any new pact will have to address thorny issues ranging from tariff harmonisation to digital trade rules and standards. But if achieved, officials on both sides believe it could cement one of the 21st century’s most consequential economic partnerships.&nbsp;(With inputs from the agencies)&nbsp;

At a White House event, he hinted at a very big agreement on the horizon while emphasizing selective trade partnerships.

US President Donald Trump has fuelled fresh speculation about an imminent “very big” trade deal with India, weeks after top negotiators from both countries wrapped up closed-door talks aimed at slashing tariffs and expanding market access. Speaking at the ‘Big Beautiful Event’ at the White House on Thursday, Trump told supporters: “We just signed with China yesterday. We are having some great deals. We have one coming up, maybe with India. Very big one,” as quoted by Reuters. Trump said the United States would not sign trade deals with every nation indiscriminately. “We’re not going to make deals with everybody. Some we are just going to send them a letter, say thank you very much. You are to pay 25, 35, 45 per cent. That’s the easy way to do it,” he said, emphasising that his team preferred forging substantial bilateral pacts over blanket tariff threats, as reported by Reuters. High-stakes negotiations target $500 billion trade milestone The comments follow intensive four-day negotiations held earlier this month between US and Indian trade teams in New Delhi. Talks focused on expanding market access for industrial and agricultural products, tariff reductions, and tackling non-tariff barriers. According to people familiar with the negotiations, the goal is to transform annual bilateral trade from its current level of around $190 billion to $500 billion by 2030, a figure Indian and US officials have cited repeatedly as a shared ambition. Union Commerce and Industry Minister Piyush Goyal said after the latest round of talks: “PM Modi and US President Trump met in February 2025… Both our leaders have decided to enter into a bilateral trade agreement which will be mutually beneficial for both the economies, businesses on both sides and the people of both countries. We are negotiating to make a nice, fair, equitable, and balanced agreement to promote business,” as quoted by Reuters. Earlier this month, US Commerce Secretary Howard Lutnick also signalled optimism that a deal could soon be finalised, saying both sides had found “common ground” to meet their strategic and economic interests, as per Reuters. India–US trade: A crucial and growing partnership The United States is India’s single largest trading partner. According to India’s Ministry of Commerce and Industry, bilateral goods and services trade between the two countries reached $191 billion in 2023–24, with Indian exports to the US valued at over $118 billion and imports from the US at around $73 billion. The US accounted for roughly 18 per cent of India’s total exports in 2023–24, making it India’s top export destination. Key Indian exports include pharmaceuticals, textiles, engineering goods, gems and jewellery, and software services. Conversely, the US is a major supplier of crude oil, LNG, advanced machinery, aircraft, defence equipment and agricultural products to India. US energy exports to India alone exceeded $10 billion in 2023, as per the US Energy Information Administration. Trade in services also forms a vital component of the economic relationship, with India’s IT sector providing services worth over $40 billion annually to US clients, according to Nasscom data. Investment ties are similarly robust. US foreign direct investment in India stood at $67 billion as of end-2023, while Indian companies have invested over $40 billion in the US, generating thousands of American jobs. Talks come amid tariff threats Trump’s comments also underline the high-stakes backdrop for the negotiations. The US President has threatened to impose tariffs of up to 45 per cent on countries unwilling to strike new trade deals with Washington. While the Biden-era Phase One agreement with India had kept tariff escalation largely at bay, Trump’s second-term approach has seen renewed threats of sweeping duties unless partners sign what he calls “fair and reciprocal” deals. Indian officials see a deal with the US as critical to securing market stability and boosting exports amid a challenging global environment marked by trade fragmentation and geopolitical tensions. For the United States, expanding trade ties with India is seen as a key element of its Indo-Pacific strategy, offering a counterweight to China’s economic influence in the region. A path forward? Negotiators from both sides remain tight-lipped about precise timelines or the final shape of any agreement. But Trump’s remarks suggest both governments want to signal progress ahead of their next planned high-level meeting. With India–US trade already on a record-setting trajectory, any new pact will have to address thorny issues ranging from tariff harmonisation to digital trade rules and standards. But if achieved, officials on both sides believe it could cement one of the 21st century’s most consequential economic partnerships. (With inputs from the agencies)

US President Donald Trump has raised expectations for a significant trade deal with India following recent negotiations aimed at reducing tariffs and improving market access.

US–India trade deal: What’s inside Trump’s “very big” hint?

The world’s leading financial crime watchdog has sounded the alarm over gaps in cryptocurrency regulation, urging governments to take far stronger action against illicit finance in the booming sector.&nbsp;The Financial Action Task Force (FATF), based in Paris, warned on Thursday that shortcomings in policing virtual assets risk creating global financial vulnerabilities, with criminals exploiting loopholes across borders. “Virtual assets are inherently borderless, and regulatory failures in one jurisdiction can have global consequences,” the FATF said in a statement, as quoted by Reuters. The call-to-action underscores mounting concern among global regulators that rapid growth in crypto markets is outpacing efforts to keep them in check.<h2>Patchy compliance despite progress</h2>According to the FATF’s latest assessment, progress on tightening crypto rules remains uneven. As of April 2025, only 40 out of 138 jurisdictions assessed were considered “largely compliant” with its standards, up from 32 the previous year.&nbsp;While that improvement reflects some momentum, it also highlights the vast number of countries lagging behind. FATF officials warn that these regulatory gaps create safe havens for criminals, making it harder to trace illicit financial flows that move seamlessly across national borders.<h2>Surge in illicit crypto activity</h2>The watchdog cited alarming figures pointing to the scale of the problem. Blockchain analytics firm Chainalysis estimates that illicit crypto wallet addresses may have received as much as $51 billion in 2024 alone. Countries, the FATF says, continue to face major difficulties in identifying the real people behind virtual asset transactions, a key challenge in disrupting networks of money launderers, sanctions evaders and terror financiers.&nbsp;FATF also flagged particular concern over the rising role of stablecoins, cryptocurrencies pegged to fiat currencies like the US dollar which it said have become a preferred tool for various illicit actors. “Most illicit crypto activity now involves stablecoins,” the FATF warned, adding that the technology is being misused by groups including terrorist financiers, drug traffickers and state-backed cyber criminals.<h2>Spotlight on North Korea</h2>The report comes amid heightened scrutiny of North Korea’s role in global cybercrime. In February 2025, the FBI blamed North Korean hackers for the theft of around $1.5 billion worth of virtual assets from the crypto exchange ByBit, the largest known crypto heist in history.&nbsp;Pyongyang has repeatedly denied involvement in such attacks, but security agencies in the US and allied countries say North Korea’s regime relies heavily on crypto thefts and ransomware operations to fund its weapons programmes.<h2>Global authorities ramp up warnings</h2>The FATF’s statement is the latest in a series of warnings from international regulators about crypto’s potential to undermine financial stability and security. In April 2025, the European Union’s securities watchdog cautioned that the rapidly expanding crypto sector could pose systemic risks, particularly as its links with traditional financial markets deepen. As governments scramble to finalise regulatory frameworks, FATF urged them to prioritise closing loopholes, increasing oversight, and improving coordination. Without such steps, it warned, the risk of crypto markets being weaponised by criminals and even hostile states will only grow.&nbsp;The message is clear: despite technological innovation and growing mainstream adoption, the crypto industry remains in urgent need of stricter global policing to prevent it from becoming a haven for financial crime.&nbsp;(With inputs from the agencies)

Despite some progress, only 40 of 138 jurisdictions are largely compliant with FATF standards. Regulatory gaps allow criminals to exploit loopholes, particularly with stablecoins, which are increasingly used for illegal activities. 

The world’s leading financial crime watchdog has sounded the alarm over gaps in cryptocurrency regulation, urging governments to take far stronger action against illicit finance in the booming sector. The Financial Action Task Force (FATF), based in Paris, warned on Thursday that shortcomings in policing virtual assets risk creating global financial vulnerabilities, with criminals exploiting loopholes across borders. “Virtual assets are inherently borderless, and regulatory failures in one jurisdiction can have global consequences,” the FATF said in a statement, as quoted by Reuters. The call-to-action underscores mounting concern among global regulators that rapid growth in crypto markets is outpacing efforts to keep them in check. Patchy compliance despite progress According to the FATF’s latest assessment, progress on tightening crypto rules remains uneven. As of April 2025, only 40 out of 138 jurisdictions assessed were considered “largely compliant” with its standards, up from 32 the previous year. While that improvement reflects some momentum, it also highlights the vast number of countries lagging behind. FATF officials warn that these regulatory gaps create safe havens for criminals, making it harder to trace illicit financial flows that move seamlessly across national borders. Surge in illicit crypto activity The watchdog cited alarming figures pointing to the scale of the problem. Blockchain analytics firm Chainalysis estimates that illicit crypto wallet addresses may have received as much as $51 billion in 2024 alone. Countries, the FATF says, continue to face major difficulties in identifying the real people behind virtual asset transactions, a key challenge in disrupting networks of money launderers, sanctions evaders and terror financiers. FATF also flagged particular concern over the rising role of stablecoins, cryptocurrencies pegged to fiat currencies like the US dollar which it said have become a preferred tool for various illicit actors. “Most illicit crypto activity now involves stablecoins,” the FATF warned, adding that the technology is being misused by groups including terrorist financiers, drug traffickers and state-backed cyber criminals. Spotlight on North Korea The report comes amid heightened scrutiny of North Korea’s role in global cybercrime. In February 2025, the FBI blamed North Korean hackers for the theft of around $1.5 billion worth of virtual assets from the crypto exchange ByBit, the largest known crypto heist in history. Pyongyang has repeatedly denied involvement in such attacks, but security agencies in the US and allied countries say North Korea’s regime relies heavily on crypto thefts and ransomware operations to fund its weapons programmes. Global authorities ramp up warnings The FATF’s statement is the latest in a series of warnings from international regulators about crypto’s potential to undermine financial stability and security. In April 2025, the European Union’s securities watchdog cautioned that the rapidly expanding crypto sector could pose systemic risks, particularly as its links with traditional financial markets deepen. As governments scramble to finalise regulatory frameworks, FATF urged them to prioritise closing loopholes, increasing oversight, and improving coordination. Without such steps, it warned, the risk of crypto markets being weaponised by criminals and even hostile states will only grow. The message is clear: despite technological innovation and growing mainstream adoption, the crypto industry remains in urgent need of stricter global policing to prevent it from becoming a haven for financial crime. (With inputs from the agencies)

The Financial Action Task Force (FATF) has raised concerns about inadequate cryptocurrency regulation, urging governments to strengthen measures against illicit finance.

Global watchdog urges crackdown on crypto crime as risks grow

European Union leaders gathered in Brussels on Thursday to discuss fresh trade proposals from the United States, with just two weeks left before a tariff truce expires and the spectre of 50 per cent US import duties returns to threaten transatlantic commerce.&nbsp;As per Reuters, European Commission President Ursula von der Leyen presented the “outline” of the new US offer to heads of state and government at the summit, though officials did not reveal specific details. One EU diplomat described the proposal as a “two-pager, principle agreement” and said Washington was keen to avoid negotiating sector-by-sector commitments, as quoted by Reuters.&nbsp; “We only have two weeks left – so we should go for something like that, like Brazil and Britain,” the diplomat added, alluding to simpler trade frameworks struck by other countries with the US. But divisions across the EU remain stark, with France pushing for a tougher line while Italy leans towards compromise.<h2>Internal EU divisions complicate talks</h2>The split within Europe’s largest economies has become increasingly visible. German Chancellor Friedrich Merz earlier this week urged the bloc to move quickly and prioritise a “faster” and “simpler” trade deal with Washington. In contrast, French officials argued that Brussels should hold out for stronger terms, particularly on opening up US services markets, as per Reuters. The stakes are high. President Donald Trump has threatened to raise tariffs on EU goods to 50 per cent if a new agreement cannot be reached before the July 9 deadline, reigniting fears of a transatlantic trade war at a time when European economies are already battling high inflation and sluggish growth.&nbsp;According to Reuters, the European Commission is trying to find common ground among the 27 member states but achieving a unified position before the deadline remains a significant diplomatic challenge.<h2>Tariffs overshadow broader summit agenda</h2>The Brussels summit had originally been intended to cover a wider range of pressing issues, from Europe’s security posture to its fraught relationship with Russia but trade tensions with Washington quickly dominated proceedings.&nbsp;The meeting followed a tense NATO summit earlier in the week, where alliance members agreed to raise defence spending significantly. However, that commitment exposed rifts within Europe, with some states privately admitting they cannot afford the new targets. Spain has reportedly demanded an explicit opt-out, highlighting the strains on national budgets amid competing priorities.<h2>Ukraine pressures Europe for stronger stance</h2>Meanwhile, the war in Ukraine cast a long shadow over the summit’s agenda. Ukrainian President Volodymyr Zelenskiy addressed EU leaders directly, calling for a fresh round of sanctions on Russia that would target its oil exports and banking sector. He also demanded a clear, unequivocal message of support for Ukraine’s future EU membership.&nbsp;“What’s needed now is a clear political message – that Ukraine is firmly on the European path, and that Europe stands by its promises,” Zelenskiy told the gathering, as quoted by Reuters. “Any delay by Europe at this point could create a global precedent – a reason to doubt Europe’s words and commitments.” Yet even on this front, divisions persist. Hungary remains firmly opposed to offering Ukraine a clear accession path or adopting new sanctions on Russian energy trade.<h2>Uncertain path ahead</h2>As the Brussels talks adjourned without a final decision on the US trade proposal, time is rapidly running out for Europe to strike a deal that would avert punishing new tariffs. European officials say they will continue negotiations in the coming days, but the challenge of reconciling internal divisions while bargaining with the Trump administration’s hardline stance remains daunting.&nbsp;With transatlantic relations at risk of fresh trade turmoil, and Ukraine’s war effort demanding ever more support, EU leaders face a difficult balancing act as they seek to project unity and resolve on the global stage.&nbsp;(With inputs from the agencies)&nbsp;

European Commission President Ursula von der Leyen presented a basic outline of the US offer, which seeks a more straightforward agreement rather than detailed sector by sector negotiations. 

European Union leaders gathered in Brussels on Thursday to discuss fresh trade proposals from the United States, with just two weeks left before a tariff truce expires and the spectre of 50 per cent US import duties returns to threaten transatlantic commerce. As per Reuters, European Commission President Ursula von der Leyen presented the “outline” of the new US offer to heads of state and government at the summit, though officials did not reveal specific details. One EU diplomat described the proposal as a “two-pager, principle agreement” and said Washington was keen to avoid negotiating sector-by-sector commitments, as quoted by Reuters. “We only have two weeks left – so we should go for something like that, like Brazil and Britain,” the diplomat added, alluding to simpler trade frameworks struck by other countries with the US. But divisions across the EU remain stark, with France pushing for a tougher line while Italy leans towards compromise. Internal EU divisions complicate talks The split within Europe’s largest economies has become increasingly visible. German Chancellor Friedrich Merz earlier this week urged the bloc to move quickly and prioritise a “faster” and “simpler” trade deal with Washington. In contrast, French officials argued that Brussels should hold out for stronger terms, particularly on opening up US services markets, as per Reuters. The stakes are high. President Donald Trump has threatened to raise tariffs on EU goods to 50 per cent if a new agreement cannot be reached before the July 9 deadline, reigniting fears of a transatlantic trade war at a time when European economies are already battling high inflation and sluggish growth. According to Reuters, the European Commission is trying to find common ground among the 27 member states but achieving a unified position before the deadline remains a significant diplomatic challenge. Tariffs overshadow broader summit agenda The Brussels summit had originally been intended to cover a wider range of pressing issues, from Europe’s security posture to its fraught relationship with Russia but trade tensions with Washington quickly dominated proceedings. The meeting followed a tense NATO summit earlier in the week, where alliance members agreed to raise defence spending significantly. However, that commitment exposed rifts within Europe, with some states privately admitting they cannot afford the new targets. Spain has reportedly demanded an explicit opt-out, highlighting the strains on national budgets amid competing priorities. Ukraine pressures Europe for stronger stance Meanwhile, the war in Ukraine cast a long shadow over the summit’s agenda. Ukrainian President Volodymyr Zelenskiy addressed EU leaders directly, calling for a fresh round of sanctions on Russia that would target its oil exports and banking sector. He also demanded a clear, unequivocal message of support for Ukraine’s future EU membership. “What’s needed now is a clear political message – that Ukraine is firmly on the European path, and that Europe stands by its promises,” Zelenskiy told the gathering, as quoted by Reuters. “Any delay by Europe at this point could create a global precedent – a reason to doubt Europe’s words and commitments.” Yet even on this front, divisions persist. Hungary remains firmly opposed to offering Ukraine a clear accession path or adopting new sanctions on Russian energy trade. Uncertain path ahead As the Brussels talks adjourned without a final decision on the US trade proposal, time is rapidly running out for Europe to strike a deal that would avert punishing new tariffs. European officials say they will continue negotiations in the coming days, but the challenge of reconciling internal divisions while bargaining with the Trump administration’s hardline stance remains daunting. With transatlantic relations at risk of fresh trade turmoil, and Ukraine’s war effort demanding ever more support, EU leaders face a difficult balancing act as they seek to project unity and resolve on the global stage. (With inputs from the agencies)

EU leaders met in Brussels to discuss US trade proposals as a tariff truce approaches its end, risking 50% US import duties.

EU leaders weigh US trade offer as tariff deadline looms

A fragile US-China trade truce appears to be back on track, with President Donald Trump declaring a new deal “done” after months of bitter tariff escalation and critical export curbs. The breakthrough, which includes China’s agreement to resume rare earth mineral shipments to the United States, offers a tentative respite for global markets rattled by the world’s biggest economic rivalry.&nbsp;Speaking at Washington’s Kennedy Center, Trump announced the agreement, saying: “We made a great deal with China. We’re very happy with it. We have everything we need, and we’re going to do very well with it. And hopefully they are too,” as quoted by Reuters. The deal, finalised after two days of intense negotiations in London, still requires formal approval from Chinese President Xi Jinping. Yet it marks the clearest sign yet of a possible easing of a trade war that has snarled supply chains, stoked inflation fears, and weighed on growth prospects worldwide.<h2>Rare earths at the heart of the deal</h2>One of the most significant elements of the agreement is Beijing’s commitment to remove export restrictions on rare earth minerals and magnetic components essential for manufacturing electric vehicles, smartphones, defence systems, and semiconductors.&nbsp;China’s curbs on these critical minerals—imposed in February under new export controls citing national security concerns—had threatened to choke US defence and tech supply chains. The United States accused China of weaponising its dominant position, as the country holds roughly 36 per cent of global rare earth reserves and nearly 70 per cent of refining capacity. As per Reuters, the White House says the understanding is designed to implement a Geneva framework agreed in May, which committed China to removing non-tariff countermeasures imposed on the US since April 2. However, negotiations had faltered over these mineral export curbs, prompting Washington to retaliate with its own controls on semiconductor design software and other high-end technologies.&nbsp;US Commerce Secretary Howard Lutnick told Bloomberg that China had agreed to “deliver rare earths to us” and in return, the US would “take down our countermeasures.” While Lutnick described the final rare earths deal as “balanced,” he did not detail specific mineral types or shipment volumes.<h2>Tariff freeze at 55 per cent</h2>Another headline element of the new agreement is the fixing of US tariffs on Chinese imports at 55 per cent, a composite rate built from layers of duties imposed over Trump’s second term. According to a senior White House official, this figure includes 25 per cent legacy tariffs from Trump’s first term, 20 per cent in response to alleged fentanyl trade routes through China, and a 10 per cent blanket tariff announced in February 2025. In return, China is expected to maintain a 10 per cent reciprocal tariff on US goods. Trump confirmed the deal on his social media platform Truth Social, stating: “Full magnets, and any necessary rare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities.”&nbsp;This exchange on student visas reflects a concession on another sticking point in bilateral ties, with Trump previously threatening tighter controls on Chinese nationals studying sensitive subjects in US institutions.<h2>Timeline of a bruising trade war</h2>The latest deal follows a turbulent year of tit-for-tat trade measures that reignited tensions between Washington and Beijing.&nbsp;In February 2025, Trump issued an executive order imposing a blanket 10 per cent tariff on all Chinese imports and scrapping the de minimis exemption for small parcels, arguing that e-commerce routes were being used to funnel fentanyl into the US. Beijing retaliated with tariffs on American coal, LNG, crude oil and vehicle parts, while also introducing new export controls on rare earths. By March, the conflict had escalated further, with the US hiking tariffs to 20 per cent, then to 54 per cent under Trump’s so-called “Liberation Day” order. China matched these moves, slapping tariffs as high as 125 per cent on some US products and filing a formal complaint at the World Trade Organization.&nbsp;A fragile ceasefire emerged in May after talks in Geneva produced a 90-day moratorium on new trade measures. But tensions soon resurfaced when the US accused China of failing to deliver on commitments to resume rare earth shipments. A turning point came in early June with a 90-minute phone call between Trump and Xi, which paved the way for high-level negotiations in London from June 9–10. Officials say these marathon sessions “put meat on the bones” of the Geneva framework, culminating in Trump’s declaration on June 11 that the deal was “done.”<h2>A fragile peace?</h2>Despite the White House’s upbeat messaging, analysts caution that the agreement remains short on detail and vulnerable to collapse. “It’s a done deal, according to President Trump, but we haven’t seen any details, which is why I think the market is not reacting to it yet,” Oliver Pursche, a senior adviser at Wealthspire Advisors, told Reuters. The World Bank has already cut its 2025 global growth forecast to 2.3 per cent, citing tariff escalation and policy uncertainty. Even with this new framework in place, there is deep scepticism over whether both sides can avoid another round of brinkmanship.&nbsp;For now, the deal offers a sliver of hope that the world’s two largest economies can avoid another damaging escalation. But with implementation mechanisms still pending, and a long history of breakdowns in trust, the road to a lasting trade peace remains highly uncertain.&nbsp;(With inputs from the agencies) &nbsp;

The deal encompasses China promise to restart shipments of rare earth minerals to the US, essential for numerous sectors. Trump highlighted the advantages of the agreement, but it still requires official authorization from President Xi Jinping. 

A fragile US-China trade truce appears to be back on track, with President Donald Trump declaring a new deal “done” after months of bitter tariff escalation and critical export curbs. The breakthrough, which includes China’s agreement to resume rare earth mineral shipments to the United States, offers a tentative respite for global markets rattled by the world’s biggest economic rivalry. Speaking at Washington’s Kennedy Center, Trump announced the agreement, saying: “We made a great deal with China. We’re very happy with it. We have everything we need, and we’re going to do very well with it. And hopefully they are too,” as quoted by Reuters. The deal, finalised after two days of intense negotiations in London, still requires formal approval from Chinese President Xi Jinping. Yet it marks the clearest sign yet of a possible easing of a trade war that has snarled supply chains, stoked inflation fears, and weighed on growth prospects worldwide. Rare earths at the heart of the deal One of the most significant elements of the agreement is Beijing’s commitment to remove export restrictions on rare earth minerals and magnetic components essential for manufacturing electric vehicles, smartphones, defence systems, and semiconductors. China’s curbs on these critical minerals—imposed in February under new export controls citing national security concerns—had threatened to choke US defence and tech supply chains. The United States accused China of weaponising its dominant position, as the country holds roughly 36 per cent of global rare earth reserves and nearly 70 per cent of refining capacity. As per Reuters, the White House says the understanding is designed to implement a Geneva framework agreed in May, which committed China to removing non-tariff countermeasures imposed on the US since April 2. However, negotiations had faltered over these mineral export curbs, prompting Washington to retaliate with its own controls on semiconductor design software and other high-end technologies. US Commerce Secretary Howard Lutnick told Bloomberg that China had agreed to “deliver rare earths to us” and in return, the US would “take down our countermeasures.” While Lutnick described the final rare earths deal as “balanced,” he did not detail specific mineral types or shipment volumes. Tariff freeze at 55 per cent Another headline element of the new agreement is the fixing of US tariffs on Chinese imports at 55 per cent, a composite rate built from layers of duties imposed over Trump’s second term. According to a senior White House official, this figure includes 25 per cent legacy tariffs from Trump’s first term, 20 per cent in response to alleged fentanyl trade routes through China, and a 10 per cent blanket tariff announced in February 2025. In return, China is expected to maintain a 10 per cent reciprocal tariff on US goods. Trump confirmed the deal on his social media platform Truth Social, stating: “Full magnets, and any necessary rare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities.” This exchange on student visas reflects a concession on another sticking point in bilateral ties, with Trump previously threatening tighter controls on Chinese nationals studying sensitive subjects in US institutions. Timeline of a bruising trade war The latest deal follows a turbulent year of tit-for-tat trade measures that reignited tensions between Washington and Beijing. In February 2025, Trump issued an executive order imposing a blanket 10 per cent tariff on all Chinese imports and scrapping the de minimis exemption for small parcels, arguing that e-commerce routes were being used to funnel fentanyl into the US. Beijing retaliated with tariffs on American coal, LNG, crude oil and vehicle parts, while also introducing new export controls on rare earths. By March, the conflict had escalated further, with the US hiking tariffs to 20 per cent, then to 54 per cent under Trump’s so-called “Liberation Day” order. China matched these moves, slapping tariffs as high as 125 per cent on some US products and filing a formal complaint at the World Trade Organization. A fragile ceasefire emerged in May after talks in Geneva produced a 90-day moratorium on new trade measures. But tensions soon resurfaced when the US accused China of failing to deliver on commitments to resume rare earth shipments. A turning point came in early June with a 90-minute phone call between Trump and Xi, which paved the way for high-level negotiations in London from June 9–10. Officials say these marathon sessions “put meat on the bones” of the Geneva framework, culminating in Trump’s declaration on June 11 that the deal was “done.” A fragile peace? Despite the White House’s upbeat messaging, analysts caution that the agreement remains short on detail and vulnerable to collapse. “It’s a done deal, according to President Trump, but we haven’t seen any details, which is why I think the market is not reacting to it yet,” Oliver Pursche, a senior adviser at Wealthspire Advisors, told Reuters. The World Bank has already cut its 2025 global growth forecast to 2.3 per cent, citing tariff escalation and policy uncertainty. Even with this new framework in place, there is deep scepticism over whether both sides can avoid another round of brinkmanship. For now, the deal offers a sliver of hope that the world’s two largest economies can avoid another damaging escalation. But with implementation mechanisms still pending, and a long history of breakdowns in trust, the road to a lasting trade peace remains highly uncertain. (With inputs from the agencies)

A trade agreement between the US and China seems to be reinstated, with President Trump revealing a deal following months of rising tariffs and export limitations.

US-China trade truce: Trump says deal is ‘done’ as rare earth exports set to resume

India’s benchmark indices extended their winning streak for the third consecutive session on June 26, buoyed by easing geopolitical concerns and strong buying in banking, metal, and oil &amp; gas stocks. The BSE Sensex soared 1,000.36 points, or 1.21 per cent, to close at 83,755.87, while the NSE Nifty 50 index jumped 304.25 points to settle at 25,549. Both indices touched their highest levels in nearly nine months.&nbsp;The rally, driven by heavyweight performers such as HDFC Bank, Reliance Industries, Tata Steel, and Bharti Airtel, pushed the market capitalisation of BSE-listed companies up by ₹3.33 lakh crore ($38.84 billion) on June 26 alone. Over the past three sessions, investor wealth has grown by ₹9.70 lakh crore ($113 billion), with the total market cap reaching ₹457.33 lakh crore (approximately $5.34 trillion).&nbsp;<h2>Financials and metals lead the charge</h2>&nbsp;Market sentiment was upbeat across key sectors. Nifty Bank ended at a record high of 57,207, rising 586 points, supported by strong moves in private bank shares like HDFC Bank and ICICI Bank. Financials and metal shares outperformed, with the Nifty Metal index gaining 2.3 per cent, led by stocks like Tata Steel, Jindal Steel, Vedanta, and Hindustan Copper. Oil marketing companies such as IOC, BPCL, and HPCL also saw robust gains of around 3 per cent each. Broadly, financial services, metals, oil &amp; gas, energy, and utilities indices posted 1–2 per cent gains. On the flip side, IT, realty, and media stocks ended in the red.&nbsp;Among the top performers were Bharti Airtel and HDFC Bank, both crossing ₹2,000 per share for the first time. A total of four Nifty stocks—Bharti Airtel, HDFC Bank, HDFC Life, and Grasim—hit record highs during the session.&nbsp;Broader markets also participated in the rally, though to a lesser extent. The BSE Midcap index climbed 0.56 per cent, while the Smallcap index edged up 0.12 per cent. However, market breadth was neutral, with 2,097 stocks advancing, 1,900 declining, and 156 remaining unchanged on the BSE.&nbsp;<h2>Rupee strengthens, FIIs trim holdings</h2>&nbsp;The Indian rupee strengthened to a two-week high, closing at 85.7050 per dollar (provisional), rising 0.4 per cent on the back of dollar weakness amid concerns over the future independence of the US Federal Reserve. Despite the market rally, foreign institutional investors (FIIs) continued to pare holdings due to narrowing yield spreads between US and Indian 10-year bonds. Meanwhile, domestic institutional investors (DIIs) emerged as net buyers, buoyed by improving liquidity and a recovery in consumption trends.&nbsp;<h2>Asian markets mixed; Japan outperforms</h2>&nbsp;Elsewhere in Asia, markets ended mixed. Japanese indices hit near five-month highs, powered by tech stocks, while South Korea's market declined on profit booking. China’s Shanghai Composite closed 0.22 per cent lower as investors weighed lingering economic and geopolitical risks. Gold ticked higher in Asian trade amid dollar weakness, and oil prices rose on signs of strong US crude demand.&nbsp;With geopolitical concerns abating and domestic fundamentals stabilising, Indian equities appear to be regaining strong upward momentum, even as global cues remain cautiously optimistic.

The rally, driven by heavyweight performers such as HDFC Bank, Reliance Industries, Tata Steel, and Bharti Airtel, pushed the market capitalisation of BSE-listed companies up by ₹$38.84 billion on June 26 alone.

India’s benchmark indices extended their winning streak for the third consecutive session on June 26, buoyed by easing geopolitical concerns and strong buying in banking, metal, and oil & gas stocks. The BSE Sensex soared 1,000.36 points, or 1.21 per cent, to close at 83,755.87, while the NSE Nifty 50 index jumped 304.25 points to settle at 25,549. Both indices touched their highest levels in nearly nine months. The rally, driven by heavyweight performers such as HDFC Bank, Reliance Industries, Tata Steel, and Bharti Airtel, pushed the market capitalisation of BSE-listed companies up by ₹3.33 lakh crore ($38.84 billion) on June 26 alone. Over the past three sessions, investor wealth has grown by ₹9.70 lakh crore ($113 billion), with the total market cap reaching ₹457.33 lakh crore (approximately $5.34 trillion). Financials and metals lead the charge Market sentiment was upbeat across key sectors. Nifty Bank ended at a record high of 57,207, rising 586 points, supported by strong moves in private bank shares like HDFC Bank and ICICI Bank. Financials and metal shares outperformed, with the Nifty Metal index gaining 2.3 per cent, led by stocks like Tata Steel, Jindal Steel, Vedanta, and Hindustan Copper. Oil marketing companies such as IOC, BPCL, and HPCL also saw robust gains of around 3 per cent each. Broadly, financial services, metals, oil & gas, energy, and utilities indices posted 1–2 per cent gains. On the flip side, IT, realty, and media stocks ended in the red. Among the top performers were Bharti Airtel and HDFC Bank, both crossing ₹2,000 per share for the first time. A total of four Nifty stocks—Bharti Airtel, HDFC Bank, HDFC Life, and Grasim—hit record highs during the session. Broader markets also participated in the rally, though to a lesser extent. The BSE Midcap index climbed 0.56 per cent, while the Smallcap index edged up 0.12 per cent. However, market breadth was neutral, with 2,097 stocks advancing, 1,900 declining, and 156 remaining unchanged on the BSE. Rupee strengthens, FIIs trim holdings The Indian rupee strengthened to a two-week high, closing at 85.7050 per dollar (provisional), rising 0.4 per cent on the back of dollar weakness amid concerns over the future independence of the US Federal Reserve. Despite the market rally, foreign institutional investors (FIIs) continued to pare holdings due to narrowing yield spreads between US and Indian 10-year bonds. Meanwhile, domestic institutional investors (DIIs) emerged as net buyers, buoyed by improving liquidity and a recovery in consumption trends. Asian markets mixed; Japan outperforms Elsewhere in Asia, markets ended mixed. Japanese indices hit near five-month highs, powered by tech stocks, while South Korea's market declined on profit booking. China’s Shanghai Composite closed 0.22 per cent lower as investors weighed lingering economic and geopolitical risks. Gold ticked higher in Asian trade amid dollar weakness, and oil prices rose on signs of strong US crude demand. With geopolitical concerns abating and domestic fundamentals stabilising, Indian equities appear to be regaining strong upward momentum, even as global cues remain cautiously optimistic.

The rally, driven by heavyweight performers such as HDFC Bank, Reliance Industries, Tata Steel, and Bharti Airtel, pushed the market capitalisation of BSE-listed companies up by ₹$38.84 billion on June 26 alone.

Markets soar for third straight day: Sensex surges 1,000 points, Nifty crosses 25,500

The United States is redrawing its military priorities. President Donald Trump has unveiled a nearly $893 billion defence and national security budget request for 2026, one that reflects a clear pivot towards next-generation warfare. The budget, flat in dollar terms from last year, offers a glimpse into Trump’s evolving vision: a leaner, tech-driven military force, heavy on drones and long-range missiles, but lighter on traditional fighter jets and warships.&nbsp;But the announcement does not exist in isolation. It comes at a time when the world is witnessing not one, but two active war zones, Russia’s grinding invasion of Ukraine and a dangerous escalation between Israel and Iran. And across the Atlantic, NATO is preparing for a historic increase in defence spending. So, what’s really driving Trump’s latest move?<h2>More missiles, fewer F-35s: Inside the 2026 budget shift</h2>According to documents reviewed by Reuters, Trump has proposed purchasing only 47 F-35 stealth jets, down from 68 approved in President Biden’s final defence budget. The cut has already sparked pushback on Capitol Hill, with the House Appropriations Committee recommending 69 fighter jets as part of its draft legislation. Instead of expanding airpower through fighter jets, the budget prioritises long-range strike capabilities. As per Reuters, the US Air Force plans to increase investment in the Joint Air-to-Surface Standoff Missile - Extended Range (JASSM-ER) and Long Range Anti-Ship Missile (LRASM), systems designed to strike targets at a distance, particularly relevant to rising tensions in the Indo-Pacific.&nbsp;Meanwhile, orders for the Precision Strike Missile, a successor to the Army Tactical Missile System (ATACMS) used in Ukraine, are being scaled back, signalling a focus on fewer, more advanced platforms.In another major shift, the budget boosts funding for small tactical drones, a response to battlefield innovations seen in Ukraine, where cheap, unmanned aircraft have proven to be highly effective tools of modern warfare.<h2>Cuts and controversy: What’s being sacrificed?</h2>To offset these investments, the 2026 plan trims other corners of the Pentagon’s arsenal. As per Reuters, the US Navy will reduce its civilian workforce by more than 7,200 jobs, while only three new warships are scheduled for procurement under this budget. Large naval projects like the Virginia-class submarine, jointly built by General Dynamics and Huntington Ingalls Industries, will instead be funded through a separate appropriation.&nbsp;One of Trump’s most ambitious defence projects, the “Golden Dome” missile defence shield is mostly absent from this request. Instead, funding for the programme has been routed through a separate $25 billion allocation within a larger $150 billion Republican-led defence package dubbed the “One Big Beautiful Bill Act”, which has already passed the House.<h2>How US defence spending in 2024–25</h2>Before Trump’s 2026 pitch, the US already led global military spending. As per Reuters, US defence outlays reached $997 billion in fiscal 2024, rising 5.7 per cent from 2023 and comprising 37 per cent of worldwide military expenditure. For fiscal 2025, Congress approved about $895 billion under the National Defense Authorization Act. This total included a $849.8 billion base budget and additional war-related, emergency funding, in line with the Fiscal Responsibility Act of 2023, which capped growth at just 0.9 per cent over the previous year .&nbsp;The $849.8 billion base defence budget for fiscal 2025 was divided into several major areas. According to the Department of Defense’s FY 2025 budget overview, around 39 per cent (approximately $330 billion) was dedicated to military personnel and benefits, including pay, housing and healthcare. A similar proportion was allocated to operations and maintenance, covering day-to-day military activities, logistics, training, facility upkeep and ongoing overseas commitments . The combined $300 billion allocated to procurement and research, development, test &amp; evaluation (RDT&amp;E) funded new weapons, advanced technologies, and the next generation of platforms which are vital for modernising the force. This structure reflects a strong focus on sustaining readiness while investing heavily in future capabilities.Altogether, defence spending comprised just over 50 per cent of the US discretionary budget, which totals around $1.8 trillion, making it the single largest area of government expenditure, as noted by Reuters.<h2>NATO’s 5 per cent pledge: A new arms race?</h2>Across the Atlantic, NATO allies are preparing for a dramatic increase in defence spending. At a summit in The Hague earlier this week, member states agreed to a new goal: defence spending equivalent to 5 per cent of national GDP by 2035, up from the current 2 per cent target set in 2014.The new benchmark includes 3.5 per cent for core military capability and 1.5 per cent for infrastructure, cyber defence, and supply chain resilience.&nbsp;But not all NATO members are willing to commit. Spain’s refusal to accept the 5 per cent goal drew a sharp rebuke from Trump, who called Madrid’s decision “terrible” and hinted at trade retaliation. As quoted by Politico, Trump stated that European nations should meet the 5 per cent target but insisted that the US should not be held to the same requirement, given it already spends around 3.4 per cent of GDP on defence. According to Washington Post, only a handful of countries, including Poland, Estonia, Latvia, Lithuania and Norway, are on track to meet the 5 per cent goal.<h2>Two wars, one nervous West</h2>The timing of Trump’s budget is deliberate. It arrives amid two major global crises.In Ukraine, Russia’s full-scale invasion has entered its third year. The US has been a key supplier of munitions and intelligence, but Trump has repeatedly called for Europe to “step up” and share more of the financial burden. As per Reuters, he remains critical of “blank cheque” approaches to Kyiv.In the West Asia, tensions between Israel and Iran have escalated rapidly. Israel has carried out targeted strikes on suspected Iranian nuclear infrastructure. In response, Tehran launched waves of drones and missiles, triggering fears of a broader regional war.&nbsp;These crises appear to have informed the Pentagon’s strategy. The focus on drones, missiles and unmanned platforms reflects an evolving battlefield where precision and distance are more valuable than conventional firepower.<h2>The bigger picture: From conventional to asymmetric warfare</h2>Trump’s 2026 defence budget reflects more than just financial priorities, it signals a shift in American military doctrine. The US is reportedly recalibrating away from high-maintenance legacy systems like the F-35 and large naval platforms, and moving towards rapid, asymmetric capabilities designed for unpredictable and tech-driven theatres of war.&nbsp;Meanwhile, NATO’s 5 per cent pledge suggests that Europe, too, is bracing for a long-term security challenge. But questions remain over implementation and whether political appetite will keep pace with rising military costs. As the US Congress prepares for heated debates over the budget, and as NATO allies scramble to realign spending, one thing is clear: the global defence landscape is undergoing a fundamental transformation. In a world shaped by drones, missile shields and cyber weapons, Trump’s budget may be setting the tone for the wars of tomorrow. &nbsp;(With inputs from the agencies) &nbsp;

As wars rage in Ukraine and West Asia, and NATO eyes a 5% defence GDP goal, the US pivots toward asymmetric warfare and tech-driven military dominance.

The United States is redrawing its military priorities. President Donald Trump has unveiled a nearly $893 billion defence and national security budget request for 2026, one that reflects a clear pivot towards next-generation warfare. The budget, flat in dollar terms from last year, offers a glimpse into Trump’s evolving vision: a leaner, tech-driven military force, heavy on drones and long-range missiles, but lighter on traditional fighter jets and warships. But the announcement does not exist in isolation. It comes at a time when the world is witnessing not one, but two active war zones, Russia’s grinding invasion of Ukraine and a dangerous escalation between Israel and Iran. And across the Atlantic, NATO is preparing for a historic increase in defence spending. So, what’s really driving Trump’s latest move? More missiles, fewer F-35s: Inside the 2026 budget shift According to documents reviewed by Reuters, Trump has proposed purchasing only 47 F-35 stealth jets, down from 68 approved in President Biden’s final defence budget. The cut has already sparked pushback on Capitol Hill, with the House Appropriations Committee recommending 69 fighter jets as part of its draft legislation. Instead of expanding airpower through fighter jets, the budget prioritises long-range strike capabilities. As per Reuters, the US Air Force plans to increase investment in the Joint Air-to-Surface Standoff Missile - Extended Range (JASSM-ER) and Long Range Anti-Ship Missile (LRASM), systems designed to strike targets at a distance, particularly relevant to rising tensions in the Indo-Pacific. Meanwhile, orders for the Precision Strike Missile, a successor to the Army Tactical Missile System (ATACMS) used in Ukraine, are being scaled back, signalling a focus on fewer, more advanced platforms. In another major shift, the budget boosts funding for small tactical drones, a response to battlefield innovations seen in Ukraine, where cheap, unmanned aircraft have proven to be highly effective tools of modern warfare. Cuts and controversy: What’s being sacrificed? To offset these investments, the 2026 plan trims other corners of the Pentagon’s arsenal. As per Reuters, the US Navy will reduce its civilian workforce by more than 7,200 jobs, while only three new warships are scheduled for procurement under this budget. Large naval projects like the Virginia-class submarine, jointly built by General Dynamics and Huntington Ingalls Industries, will instead be funded through a separate appropriation. One of Trump’s most ambitious defence projects, the “Golden Dome” missile defence shield is mostly absent from this request. Instead, funding for the programme has been routed through a separate $25 billion allocation within a larger $150 billion Republican-led defence package dubbed the “One Big Beautiful Bill Act”, which has already passed the House. How US defence spending in 2024–25 Before Trump’s 2026 pitch, the US already led global military spending. As per Reuters, US defence outlays reached $997 billion in fiscal 2024, rising 5.7 per cent from 2023 and comprising 37 per cent of worldwide military expenditure. For fiscal 2025, Congress approved about $895 billion under the National Defense Authorization Act. This total included a $849.8 billion base budget and additional war-related, emergency funding, in line with the Fiscal Responsibility Act of 2023, which capped growth at just 0.9 per cent over the previous year . The $849.8 billion base defence budget for fiscal 2025 was divided into several major areas. According to the Department of Defense’s FY 2025 budget overview, around 39 per cent (approximately $330 billion) was dedicated to military personnel and benefits, including pay, housing and healthcare. A similar proportion was allocated to operations and maintenance, covering day-to-day military activities, logistics, training, facility upkeep and ongoing overseas commitments . The combined $300 billion allocated to procurement and research, development, test & evaluation (RDT&E) funded new weapons, advanced technologies, and the next generation of platforms which are vital for modernising the force. This structure reflects a strong focus on sustaining readiness while investing heavily in future capabilities. Altogether, defence spending comprised just over 50 per cent of the US discretionary budget, which totals around $1.8 trillion, making it the single largest area of government expenditure, as noted by Reuters. NATO’s 5 per cent pledge: A new arms race? Across the Atlantic, NATO allies are preparing for a dramatic increase in defence spending. At a summit in The Hague earlier this week, member states agreed to a new goal: defence spending equivalent to 5 per cent of national GDP by 2035, up from the current 2 per cent target set in 2014. The new benchmark includes 3.5 per cent for core military capability and 1.5 per cent for infrastructure, cyber defence, and supply chain resilience. But not all NATO members are willing to commit. Spain’s refusal to accept the 5 per cent goal drew a sharp rebuke from Trump, who called Madrid’s decision “terrible” and hinted at trade retaliation. As quoted by Politico, Trump stated that European nations should meet the 5 per cent target but insisted that the US should not be held to the same requirement, given it already spends around 3.4 per cent of GDP on defence. According to Washington Post, only a handful of countries, including Poland, Estonia, Latvia, Lithuania and Norway, are on track to meet the 5 per cent goal. Two wars, one nervous West The timing of Trump’s budget is deliberate. It arrives amid two major global crises. In Ukraine, Russia’s full-scale invasion has entered its third year. The US has been a key supplier of munitions and intelligence, but Trump has repeatedly called for Europe to “step up” and share more of the financial burden. As per Reuters, he remains critical of “blank cheque” approaches to Kyiv. In the West Asia, tensions between Israel and Iran have escalated rapidly. Israel has carried out targeted strikes on suspected Iranian nuclear infrastructure. In response, Tehran launched waves of drones and missiles, triggering fears of a broader regional war. These crises appear to have informed the Pentagon’s strategy. The focus on drones, missiles and unmanned platforms reflects an evolving battlefield where precision and distance are more valuable than conventional firepower. The bigger picture: From conventional to asymmetric warfare Trump’s 2026 defence budget reflects more than just financial priorities, it signals a shift in American military doctrine. The US is reportedly recalibrating away from high-maintenance legacy systems like the F-35 and large naval platforms, and moving towards rapid, asymmetric capabilities designed for unpredictable and tech-driven theatres of war. Meanwhile, NATO’s 5 per cent pledge suggests that Europe, too, is bracing for a long-term security challenge. But questions remain over implementation and whether political appetite will keep pace with rising military costs. As the US Congress prepares for heated debates over the budget, and as NATO allies scramble to realign spending, one thing is clear: the global defence landscape is undergoing a fundamental transformation. In a world shaped by drones, missile shields and cyber weapons, Trump’s budget may be setting the tone for the wars of tomorrow. (With inputs from the agencies)

Trump’s $893B defence budget slashes F-35 orders to fund drones, missiles and next-gen warfare tools.

Why Trump’s $893 Billion Military Budget Cuts F-35s and Boosts Drones, Missiles?

Rice, a staple in Japan and an integral part of the country’s culture, tradition and politics, has turned into a pain point for the nation. A rice crisis has gripped the nation for nearly a year with soaring prices and empty supermarket shelves, but it is showing tentative signs of easing. New data from the Ministry of Agriculture, Forestry and Fisheries revealed that average rice prices fell below the psychologically significant 4,000-yen mark for the first time since early March, offering hope to consumers long frustrated by the soaring cost of a dietary staple.&nbsp; According to the ministry, a five-kilogram bag of rice sold for an average of 3,920 yen ($27.03) during the week ending June 15, a 256-yen drop from the previous week. This marks the first time in over three months that prices have entered the 3,000-yen range, a goal Prime Minister Shigeru Ishiba had pledged to achieve by the end of June.&nbsp; “This drop is a result of the government’s clear intervention and strategic release of rice reserves,” said Farm Minister Shinjiro Koizumi. Blended rice, which includes rice from government stockpiles, now accounts for half of the market share, up 6 percentage points, helping stabilise supply. Retailers have also started offering imported rice from countries like the US and South Korea. Supermarket chain Aeon began selling California-sourced rice in early June, while South Korean firm The O Global signed a deal to export 200 tonnes of rice, the largest ever by a South Korean private company, to Japan.&nbsp; Still, the recovery remains uneven. Smaller stores around Tokyo continue to report shortages, while some chains and regional outlets have resumed regular stock levels. The National Supermarket Association confirmed to CNBC that although the shortage appears to be easing, “there is no stock of reasonably priced rice,” suggesting the crisis isn’t over yet.&nbsp;<h2> Behind the shortage: Panic buying, poor harvest, and tourist demand</h2>&nbsp; The roots of Japan’s rice crisis are multifaceted. Prices began rising sharply in late 2024, primarily driven by a poor harvest in 2023 attributed to unseasonably hot weather and pest infestations. The situation worsened as demand surged, in part due to increased tourism and a rise in rice consumption spurred by rising prices of bread and noodles amid the global wheat crisis following the Russia-Ukraine war.&nbsp; Public anxiety spiked further in mid-2024 after a widely circulated warning about a potential “megaquake” led to nationwide panic buying. The top-tier “Koshihikari” brand began selling rice for nearly 5,000 yen ($35) per 5 kg, and the average household faced prices nearly double those seen the year before. At one point, rice stockpiles at commercial wholesalers dipped 400,000 tonnes below 2023 levels, hitting a record low of 1.53 million tonnes.&nbsp; Making matters worse was the government’s delayed release of emergency reserves and structural inefficiencies in Japan’s rice supply chain. The powerful Japan Agricultural Cooperatives (JA), which dominate rice sales, were caught off guard by the crisis.&nbsp;&nbsp; Meanwhile, the government has faced criticism for failing to track stock levels accurately due to a growing share of rice being sold outside traditional JA channels. The lack of a centralised tracking mechanism and logistical challenges like insufficient milling capacity to convert brown reserve rice into polished white rice only added to consumer frustration.&nbsp;<h2> Still high, still uneven</h2>&nbsp; Although prices have begun to decline, the fall has been modest. Core consumer prices in May rose by 3.7 per cent from a year earlier, with rice prices spiking by a staggering 101.7 per cent, the largest jump in over 50 years. Analysts note that branded rice prices have only just started to dip, suggesting that issues beyond simple supply-demand imbalances may be at play.&nbsp; Many consumers are also sceptical about the quality of rice being released. Government reserves often consist of older stocks, with terms like “ko-ko-komai” or “old-old-old rice” used to describe some batches. Freshly harvested “shinmai” rice is prized in Japan for its taste and texture, and older rice is seen as less palatable.&nbsp; To prevent hoarding and profiteering, authorities on June 23 implemented a ban on reselling rice bought at retail stores. Offenders now face up to one year in prison or a fine of up to 1 million yen. Despite these moves, Prime Minister Ishiba has admitted in parliament that the government still lacks full clarity on the current rice inventory, acknowledging that “structural problems” in Japan’s rice policy must be addressed. Bank of Japan Governor Kazuo Ueda echoed a cautious optimism, stating, “We expect such pressures to dissipate,” noting that while inflation remains elevated, it is being driven in part by temporary shocks like rice and import costs.&nbsp;(With inputs from agencies)

New data from the Ministry of Agriculture, Forestry and Fisheries revealed that average rice prices fell below the psychologically significant 4,000-yen mark for the first time since early March, offering hope to consumers long frustrated by the soaring cost of rice.

Rice, a staple in Japan and an integral part of the country’s culture, tradition and politics, has turned into a pain point for the nation. A rice crisis has gripped the nation for nearly a year with soaring prices and empty supermarket shelves, but it is showing tentative signs of easing. New data from the Ministry of Agriculture, Forestry and Fisheries revealed that average rice prices fell below the psychologically significant 4,000-yen mark for the first time since early March, offering hope to consumers long frustrated by the soaring cost of a dietary staple. According to the ministry, a five-kilogram bag of rice sold for an average of 3,920 yen ($27.03) during the week ending June 15, a 256-yen drop from the previous week. This marks the first time in over three months that prices have entered the 3,000-yen range, a goal Prime Minister Shigeru Ishiba had pledged to achieve by the end of June. “This drop is a result of the government’s clear intervention and strategic release of rice reserves,” said Farm Minister Shinjiro Koizumi. Blended rice, which includes rice from government stockpiles, now accounts for half of the market share, up 6 percentage points, helping stabilise supply. Retailers have also started offering imported rice from countries like the US and South Korea. Supermarket chain Aeon began selling California-sourced rice in early June, while South Korean firm The O Global signed a deal to export 200 tonnes of rice, the largest ever by a South Korean private company, to Japan. Still, the recovery remains uneven. Smaller stores around Tokyo continue to report shortages, while some chains and regional outlets have resumed regular stock levels. The National Supermarket Association confirmed to CNBC that although the shortage appears to be easing, “there is no stock of reasonably priced rice,” suggesting the crisis isn’t over yet. Behind the shortage: Panic buying, poor harvest, and tourist demand The roots of Japan’s rice crisis are multifaceted. Prices began rising sharply in late 2024, primarily driven by a poor harvest in 2023 attributed to unseasonably hot weather and pest infestations. The situation worsened as demand surged, in part due to increased tourism and a rise in rice consumption spurred by rising prices of bread and noodles amid the global wheat crisis following the Russia-Ukraine war. Public anxiety spiked further in mid-2024 after a widely circulated warning about a potential “megaquake” led to nationwide panic buying. The top-tier “Koshihikari” brand began selling rice for nearly 5,000 yen ($35) per 5 kg, and the average household faced prices nearly double those seen the year before. At one point, rice stockpiles at commercial wholesalers dipped 400,000 tonnes below 2023 levels, hitting a record low of 1.53 million tonnes. Making matters worse was the government’s delayed release of emergency reserves and structural inefficiencies in Japan’s rice supply chain. The powerful Japan Agricultural Cooperatives (JA), which dominate rice sales, were caught off guard by the crisis. Meanwhile, the government has faced criticism for failing to track stock levels accurately due to a growing share of rice being sold outside traditional JA channels. The lack of a centralised tracking mechanism and logistical challenges like insufficient milling capacity to convert brown reserve rice into polished white rice only added to consumer frustration. Still high, still uneven Although prices have begun to decline, the fall has been modest. Core consumer prices in May rose by 3.7 per cent from a year earlier, with rice prices spiking by a staggering 101.7 per cent, the largest jump in over 50 years. Analysts note that branded rice prices have only just started to dip, suggesting that issues beyond simple supply-demand imbalances may be at play. Many consumers are also sceptical about the quality of rice being released. Government reserves often consist of older stocks, with terms like “ko-ko-komai” or “old-old-old rice” used to describe some batches. Freshly harvested “shinmai” rice is prized in Japan for its taste and texture, and older rice is seen as less palatable. To prevent hoarding and profiteering, authorities on June 23 implemented a ban on reselling rice bought at retail stores. Offenders now face up to one year in prison or a fine of up to 1 million yen. Despite these moves, Prime Minister Ishiba has admitted in parliament that the government still lacks full clarity on the current rice inventory, acknowledging that “structural problems” in Japan’s rice policy must be addressed. Bank of Japan Governor Kazuo Ueda echoed a cautious optimism, stating, “We expect such pressures to dissipate,” noting that while inflation remains elevated, it is being driven in part by temporary shocks like rice and import costs. (With inputs from agencies)

New data from the Ministry of Agriculture, Forestry and Fisheries revealed that average rice prices fell below the psychologically significant 4,000-yen mark for the first time since early March, offering hope to consumers long frustrated by the soaring cost of rice.

Japan’s rice crisis eases as prices dip and stocks return to shelves

Pakistan and the United States are preparing to finalise a crucial agreement on reciprocal tariffs by next week, according to a statement released by Pakistan’s Ministry of Finance on Wednesday. The move comes ahead of the expiry of a 90-day suspension of new US tariffs that could hit Pakistani exports with duties of up to 29 per cent.&nbsp;The agreement follows a virtual meeting between Pakistan’s Finance Minister Muhammad Aurangzeb and US Commerce Secretary Howard Lutnick. According to the finance ministry, both sides agreed on “meaningful engagement” to strengthen bilateral trade and investment, and to build a broader economic partnership.<h2>US targets Pakistan’s $3 billion trade surplus</h2>The negotiations were triggered after the US announced tariffs last month on countries running significant trade surpluses with Washington. Pakistan, which posted a $3 billion trade surplus with the US, now faces a potential 29 per cent tariff on its outbound shipments.&nbsp;As per APP, the US initially delayed the tariffs by 90 days to give space for diplomatic negotiations. Islamabad responded by dispatching a high-level trade delegation to Washington in May. During the visit, Pakistan proposed a zero-tariff bilateral trade agreement and offered to boost imports of US goods such as cotton and edible oils, which are in domestic short supply.<h2>New framework for strategic economic cooperation</h2>Beyond tariffs, both sides are also discussing a long-term plan to deepen trade and investment ties. According to Pakistan’s finance ministry, the discussions will lead to a “strategic and investment-based partnership,” with technical-level talks expected to wrap up next week.&nbsp;The talks come at a time when Pakistan is looking to attract greater foreign investment amid economic reforms. Earlier this week, the two countries co-hosted a webinar promoting investment in Pakistan’s mineral sector, including the $7 billion Reko Diq copper-gold project, as reported by Reuters.US investors and government officials reportedly discussed public-private partnerships and regulatory changes to boost Pakistan’s mining sector.<h2>Trade diplomacy follows regional thaw</h2>The broader context is also shifting. US President Donald Trump, who recently brokered a ceasefire between Pakistan and India, has argued that trade diplomacy has helped avoid a deeper conflict between the two neighbours. Trump has positioned trade as a key instrument of foreign policy during his second term.&nbsp;For Pakistan, preserving access to the US market is essential. The US remains one of Pakistan’s largest trading partners, particularly for textiles, garments, and leather goods.With the clock ticking on the 90-day suspension, the stakes are high. A failure to secure a deal could expose Pakistan’s exports to costly US tariffs at a time when the country is already grappling with a depreciating rupee and industrial stagnation.&nbsp;&nbsp;(With inputs from the agencies) &nbsp;

Facing up to 29% US tariffs on exports, Pakistan pushes for zero-duty trade pact and deeper economic ties amid rising pressure on its fragile economy.

Pakistan and the United States are preparing to finalise a crucial agreement on reciprocal tariffs by next week, according to a statement released by Pakistan’s Ministry of Finance on Wednesday. The move comes ahead of the expiry of a 90-day suspension of new US tariffs that could hit Pakistani exports with duties of up to 29 per cent. The agreement follows a virtual meeting between Pakistan’s Finance Minister Muhammad Aurangzeb and US Commerce Secretary Howard Lutnick. According to the finance ministry, both sides agreed on “meaningful engagement” to strengthen bilateral trade and investment, and to build a broader economic partnership. US targets Pakistan’s $3 billion trade surplus The negotiations were triggered after the US announced tariffs last month on countries running significant trade surpluses with Washington. Pakistan, which posted a $3 billion trade surplus with the US, now faces a potential 29 per cent tariff on its outbound shipments. As per APP, the US initially delayed the tariffs by 90 days to give space for diplomatic negotiations. Islamabad responded by dispatching a high-level trade delegation to Washington in May. During the visit, Pakistan proposed a zero-tariff bilateral trade agreement and offered to boost imports of US goods such as cotton and edible oils, which are in domestic short supply. New framework for strategic economic cooperation Beyond tariffs, both sides are also discussing a long-term plan to deepen trade and investment ties. According to Pakistan’s finance ministry, the discussions will lead to a “strategic and investment-based partnership,” with technical-level talks expected to wrap up next week. The talks come at a time when Pakistan is looking to attract greater foreign investment amid economic reforms. Earlier this week, the two countries co-hosted a webinar promoting investment in Pakistan’s mineral sector, including the $7 billion Reko Diq copper-gold project, as reported by Reuters. US investors and government officials reportedly discussed public-private partnerships and regulatory changes to boost Pakistan’s mining sector. Trade diplomacy follows regional thaw The broader context is also shifting. US President Donald Trump, who recently brokered a ceasefire between Pakistan and India, has argued that trade diplomacy has helped avoid a deeper conflict between the two neighbours. Trump has positioned trade as a key instrument of foreign policy during his second term. For Pakistan, preserving access to the US market is essential. The US remains one of Pakistan’s largest trading partners, particularly for textiles, garments, and leather goods. With the clock ticking on the 90-day suspension, the stakes are high. A failure to secure a deal could expose Pakistan’s exports to costly US tariffs at a time when the country is already grappling with a depreciating rupee and industrial stagnation. (With inputs from the agencies)

Pakistan, US race to finalise reciprocal tariff deal before looming deadline threatens key exports.

Pakistan races to finalise tariff deal with US as 90-day suspension deadline nears expiry

In a landmark step towards internationalising its commodity markets and reducing reliance on the US dollar, China has rolled out its first offshore gold vault in Hong Kong. According to Bloomberg, the Shanghai Gold Exchange (SGE) launched the facility alongside two new yuan-denominated gold contracts, marking the exchange’s first physical expansion outside mainland China since its founding in 2002.&nbsp;The vault, operated by Bank of China’s Hong Kong unit, will allow settlement of trades in either cash or physical gold delivery. As per the Shanghai Gold Exchange’s statement quoted by Bloomberg, storage fees at the new vault will be waived until the end of this year to incentivise participation. Trading on the new contracts began Thursday.<h2>Why the move matters?</h2>The timing and location of the expansion are significant. As the world’s largest producer and consumer of gold, China has long sought greater influence in pricing the metal. The new offshore contracts, settled in yuan, are also part of Beijing’s broader goal of promoting the renminbi in international trade and reducing dependence on the greenback.&nbsp;Bloomberg reports that the move also strengthens Hong Kong’s role as a global financial centre. The city has long served as a gateway between China and international capital markets and is now being positioned as a logistics and trading hub for commodities not just finance.<h2>London still rules the global gold trade</h2>Despite the expansion, China still lags far behind the London Bullion Market Association (LBMA), which remains the global centre for gold trading. According to the World Gold Council, trading volumes on the LBMA still vastly exceed those of the SGE.&nbsp;Here’s how trading volumes compare in the first five months of 2025:

<figure class="table"><table><tbody><tr><td>Month</td><td>LBMA (London) Volume</td><td>SGE (Shanghai) Volume</td></tr><tr><td>January</td><td>~$155 billion</td><td>~$10 billion</td></tr><tr><td>February</td><td>~$158 billion</td><td>~$11 billion</td></tr><tr><td>March</td><td>~$145 billion</td><td>~$9 billion</td></tr><tr><td>April</td><td>~$180 billion</td><td>~$12 billion</td></tr><tr><td>May</td><td>~$150 billion</td><td>~$10 billion</td></tr></tbody></table></figure>Source: World Gold Council (2025). Volume includes over-the-counter trades.

&nbsp;While the Shanghai Gold Exchange is the single largest platform for physical bullion trading, the over-the-counter nature of London’s market ensures it remains the benchmark for institutional and wholesale activity.<h2>A quiet bid to de-dollarise</h2>As quoted by Bloomberg, China’s central bank has been a major gold buyer over the past three years, using the metal as a hedge against dollar volatility. Analysts believe the yuan-denominated offshore contracts are another step in Beijing’s ambition to reduce the dollar’s dominance in global commodity pricing.&nbsp;The Shanghai Futures Exchange, the country’s largest commodity bourse, is also preparing to open up to foreign investors. The trend points towards deeper yuan integration in energy and metals markets, building on China’s vast role in global supply chains.<h2>Will London’s dominance hold?</h2>London still accounts for the lion’s share of global gold trading, but competition is growing. Singapore is also making a play for bullion trade, while Hong Kong is sharpening its position in warehousing and logistics. However, as per analysts quoted by Bloomberg, trust, transparency, and global pricing infrastructure still favour Western markets.&nbsp;For now, the new Hong Kong vault gives Beijing a stronger foothold in global gold markets, but it is still playing catch-up in a centuries-old market. &nbsp;(With inputs from the agencies) &nbsp;

While London remains the global gold benchmark, China rising bullion purchases and yuan-based contracts signal ambition to challenge dollar dominance.

In a landmark step towards internationalising its commodity markets and reducing reliance on the US dollar, China has rolled out its first offshore gold vault in Hong Kong. According to Bloomberg, the Shanghai Gold Exchange (SGE) launched the facility alongside two new yuan-denominated gold contracts, marking the exchange’s first physical expansion outside mainland China since its founding in 2002. The vault, operated by Bank of China’s Hong Kong unit, will allow settlement of trades in either cash or physical gold delivery. As per the Shanghai Gold Exchange’s statement quoted by Bloomberg, storage fees at the new vault will be waived until the end of this year to incentivise participation. Trading on the new contracts began Thursday. Why the move matters? The timing and location of the expansion are significant. As the world’s largest producer and consumer of gold, China has long sought greater influence in pricing the metal. The new offshore contracts, settled in yuan, are also part of Beijing’s broader goal of promoting the renminbi in international trade and reducing dependence on the greenback. Bloomberg reports that the move also strengthens Hong Kong’s role as a global financial centre. The city has long served as a gateway between China and international capital markets and is now being positioned as a logistics and trading hub for commodities not just finance. London still rules the global gold trade Despite the expansion, China still lags far behind the London Bullion Market Association (LBMA), which remains the global centre for gold trading. According to the World Gold Council, trading volumes on the LBMA still vastly exceed those of the SGE. Here’s how trading volumes compare in the first five months of 2025:

China strengthens gold market presence with new Hong Kong vault as part of long-term push to de-dollarise trade.

China opens first offshore gold vault in Hong Kong, but can it rival London’s dominance?

Japan has reiterated its firm opposition to the&nbsp;25 per cent US tariffs on automobile imports, just as a high-level trade delegation prepares to enter critical negotiations in Washington. Ryosei Akazawa, Japan’s chief trade negotiator, said on Thursday that such steep duties are “unacceptable”, especially given the scale of Japan’s contribution to the American automotive market.&nbsp;Speaking to reporters ahead of his trip to the US, Akazawa said Japanese carmakers produce 3.3 million vehicles in the US annually, far more than the 1.37 million they export to America. The industry has collectively invested over $60 billion in the US and is responsible for 2.3 million jobs, according to figures shared with Reuters. In fact, 300,000 vehicles built in the US by Japanese companies are exported to other markets, contributing to America’s own trade surplus.&nbsp;“We have repeatedly explained to the US that Japan’s automobile industry has made an enormous contribution to the US economy,” Akazawa said. “We consider the 25 per cent tariff to be unacceptable," as quoted by Bloomberg.&nbsp;<h2>Tariffs threaten Japan’s fragile recovery</h2>The tariff shock comes at a delicate moment. Japan was beginning to show early signs of economic revival, wage growth was picking up and consumer demand was starting to strengthen after years of stagnation. But that fragile recovery now appears at risk. As per a Bloomberg poll, 64 per cent of economists believe the tariffs could push Japan into a recession.&nbsp;The automobile industry is the backbone of Japan’s economy. It employs 5.6 million people, or 8.3 per cent of the country’s workforce, according to the Japan Automobile Manufacturers Association. Vehicles and auto parts account for one-third of Japan’s exports to the United States, Tokyo’s largest trading partner and a key contributor to its trade surplus.&nbsp;Among Japanese carmakers, Subaru appears the most exposed. Over 70 per cent of its global sales depend on the US market, and the company now estimates a $2.5 billion hit from the tariffs this fiscal year, as per Bloomberg Intelligence. While some manufacturers may explore shifting production to the US, such decisions risk hollowing out Japan’s domestic manufacturing base and affecting thousands of parts suppliers.<h2>US remains key market for Japanese automakers</h2>A Bloomberg chart on 2024 car sales reinforces just how vital the US market is for Japanese automakers. Of Toyota’s 10 million global vehicle sales, 23 per cent were in the US. For Honda and Nissan, the figures stood at 37 per cent and 28 per cent, respectively. Subaru stands out, with an overwhelming 71 per cent of its sales concentrated in the US alone.

<figure class="table"><table><tbody><tr><td>Carmaker</td><td>Global Sales (2024)</td><td>Share of US Market</td></tr><tr><td>Toyota</td><td>10M</td><td>23%</td></tr><tr><td>Honda</td><td>3.8M</td><td>37%</td></tr><tr><td>Nissan</td><td>3.4M</td><td>28%</td></tr><tr><td>Subaru</td><td>0.94M</td><td>71%</td></tr><tr><td>Mazda</td><td>1.3M</td><td>33%</td></tr><tr><td>Mitsubishi</td><td>0.85M</td><td>13%</td></tr><tr><td>Suzuki</td><td>3.3M</td><td>0% (focuses on India &amp; Japan)</td></tr></tbody></table></figure>(Source: Bloomberg)

<h2>Japan’s supply chain at breaking point</h2>Smaller suppliers are already under pressure from the global EV transition are feeling the effects first. At Daido Steel Co., a 12,000-employee firm making magnets for hybrid engines, executives are worried about indirect fallout. The company doesn’t export directly to the US, but it supplies major automakers like Honda and Toyota, making it vulnerable to downstream production cuts.&nbsp;Another example is Hasegawa Yuuki Co., a small manufacturer with just 50 employees. The company has already lost 5 per cent of its orders after Honda moved some of its production to Alabama in response to the tariffs. President Noriyuki Hasegawa said the firm is now exploring non-automotive sectors to stay afloat, including furniture fittings and home storage equipment.&nbsp;Ogami Co., another plastic components supplier based in Gunma, has put capital investment plans on hold and warned that salary hikes for 2025 are now “difficult”. With thin profit margins and limited flexibility to expand overseas, many SMEs like Ogami may not survive prolonged trade disruptions.This is particularly concerning because two-thirds of Japan’s workforce is employed by small and mid-sized enterprises (SMEs), many of which are tied to the auto supply chain. The ripple effect of tariffs could therefore trigger a broader employment crisis and drag down wage growth.<h2>Tokyo’s last push</h2>Japan’s government is now in damage control mode. Prime Minister Shigeru Ishiba, who faces an election next month, has instructed negotiators to seek “tariff concessions” from Washington. Akazawa’s upcoming talks in North America, his seventh round with US officials are seen as Tokyo’s last chance to soften the impact.&nbsp;Japan’s best-case outcome, according to analysts cited by Bloomberg, is a reduction of auto tariffs to 10 per cent. Even that would be painful, but manageable. Analysts estimate that a 10 per cent tariff could be absorbed through gradual price hikes of 2–3 per cent per year, alongside new car model rollouts to maintain buyer interest.&nbsp;But a full 25 per cent levy would push several automakers into crisis mode. “At that level, one or two of Japan’s major carmakers may require state support,” said Tatsuo Yoshida, a senior auto analyst at Bloomberg Intelligence. He compared the potential fallout to General Motors during the global financial crisis—a scenario Tokyo would want to avoid at all costs.<h2>Will protectionism outlast Trump?</h2>Japanese businesses are watching developments closely. For many, the fear isn’t just about this tariff round—it’s about whether Trump’s protectionist wave will continue if he secures another four-year term.“Surviving the pandemic was hard enough. But this time, we may not make it,” said Hiroaki Ogami, the head of Ogami Co., in an interview with Bloomberg. “We can’t just wait this out.” &nbsp;(With inputs from the agencies) &nbsp;

With 3.3 million cars built in America and $60 billion invested, Japan urges Washington to reconsider 25% tariff that threatens jobs, exports, and fragile growth.

Japan has reiterated its firm opposition to the 25 per cent US tariffs on automobile imports, just as a high-level trade delegation prepares to enter critical negotiations in Washington. Ryosei Akazawa, Japan’s chief trade negotiator, said on Thursday that such steep duties are “unacceptable”, especially given the scale of Japan’s contribution to the American automotive market. Speaking to reporters ahead of his trip to the US, Akazawa said Japanese carmakers produce 3.3 million vehicles in the US annually, far more than the 1.37 million they export to America. The industry has collectively invested over $60 billion in the US and is responsible for 2.3 million jobs, according to figures shared with Reuters. In fact, 300,000 vehicles built in the US by Japanese companies are exported to other markets, contributing to America’s own trade surplus. “We have repeatedly explained to the US that Japan’s automobile industry has made an enormous contribution to the US economy,” Akazawa said. “We consider the 25 per cent tariff to be unacceptable," as quoted by Bloomberg. Tariffs threaten Japan’s fragile recovery The tariff shock comes at a delicate moment. Japan was beginning to show early signs of economic revival, wage growth was picking up and consumer demand was starting to strengthen after years of stagnation. But that fragile recovery now appears at risk. As per a Bloomberg poll, 64 per cent of economists believe the tariffs could push Japan into a recession. The automobile industry is the backbone of Japan’s economy. It employs 5.6 million people, or 8.3 per cent of the country’s workforce, according to the Japan Automobile Manufacturers Association. Vehicles and auto parts account for one-third of Japan’s exports to the United States, Tokyo’s largest trading partner and a key contributor to its trade surplus. Among Japanese carmakers, Subaru appears the most exposed. Over 70 per cent of its global sales depend on the US market, and the company now estimates a $2.5 billion hit from the tariffs this fiscal year, as per Bloomberg Intelligence. While some manufacturers may explore shifting production to the US, such decisions risk hollowing out Japan’s domestic manufacturing base and affecting thousands of parts suppliers. US remains key market for Japanese automakers A Bloomberg chart on 2024 car sales reinforces just how vital the US market is for Japanese automakers. Of Toyota’s 10 million global vehicle sales, 23 per cent were in the US. For Honda and Nissan, the figures stood at 37 per cent and 28 per cent, respectively. Subaru stands out, with an overwhelming 71 per cent of its sales concentrated in the US alone.

Japan slams US auto tariffs as “unacceptable” ahead of key trade talks, warning of recession risk and damage to economic recovery.

Japan rejects US 25% auto tariffs, says carmakers already boost American economy

Britain is on track to experience its worst decade for living standards growth in more than 6 decades, according to the Resolution Foundation’s Living Standards Outlook 2025, released on June 26. Despite a sharp income recovery in 2024-25, the report warns that median household incomes will stagnate through the rest of the 2020s, particularly hitting lower-income families, renters, and children. Drawing on economic forecasts from the Office for Budget Responsibility (OBR) and the Bank of England, the report projects that typical non-pensioner household incomes will grow by just 1 per cent in real terms between 2024-25 and 2029-30, a cash gain of only around £300. This would amount to zero growth across the full decade, following a turbulent first half marked by the Covid-19 pandemic and the cost-of-living crisis.The weakest outlook is for those at the bottom of the income distribution. The poorest 10 per cent of non-pensioner households are projected to be 8 per cent worse off in 2029-30 compared to 2019-20, a loss of around £1,000. Meanwhile, incomes for the bottom half overall are expected to fall by 2 per cent over the decade, whereas the top half could see a slight rise of 1 per cent.Pensioners and outright homeowners are among the few groups likely to see positive growth. Pensioner incomes are projected to rise by 5 per cent between 2024-25 and 2029-30, largely due to the continuation of the triple lock on the state pension. By contrast, private renters are expected to see incomes fall by 2 per cent and mortgagors by 1 per cent over the same period. Children, in particular, are expected to suffer, with their typical household income projected to be 2 per cent lower in 2029-30 than in 2019-20.<h2>Policy choices and economic risks ahead</h2>The report warns that current government policies, including the continuation of the two-child benefit limit, frozen income tax thresholds, and rising council tax, are set to suppress income growth. Under existing policies, child poverty is expected to rise from 31 per cent in 2023-24 to 34 per cent by the end of the decade, representing a record 4.8 million children in poverty.However, the Resolution Foundation highlights that alternative policy decisions could significantly alter the trajectory. For instance, scrapping the two-child limit could reverse the expected rise in child poverty and deliver modest income growth for the poorest families, even if funded by tax increases.More optimistic economic scenarios, including stronger pay growth and higher employment, could also improve outcomes. In such a case, median incomes could rise by up to 3 per cent between 2024-25 and 2029-30, still historically weak, but better than the central forecast.<h2>Public concern reflects hard realities</h2>The bleak projections come amid widespread public anxiety. According to recent surveys cited in the report, 86 per cent of Britons view the cost of living as the UK’s most pressing issue, with a record 26 per cent saying they are struggling to live on their income, up from 16 per cent in 2018.Despite strong earnings growth in recent years, rising inflation, high housing costs, and policy headwinds have eroded real income gains. Without substantial changes, the 2020s could mark a generational low point for British household living standards.“The government’s goal of raising living standards is welcome but unambitious,” said Adam Corlett, lead author of the report. “Delivering noticeable income growth for a broad range of voters will require targeted measures for the poorest as well as sustained economic growth.”

The weakest outlook is for those at the bottom of the income distribution. The poorest 10 per cent of non-pensioner households are projected to be 8 per cent worse off in 2029-30 compared to 2019-20.

Britain is on track to experience its worst decade for living standards growth in more than 6 decades, according to the Resolution Foundation’s Living Standards Outlook 2025, released on June 26. Despite a sharp income recovery in 2024-25, the report warns that median household incomes will stagnate through the rest of the 2020s, particularly hitting lower-income families, renters, and children. Drawing on economic forecasts from the Office for Budget Responsibility (OBR) and the Bank of England, the report projects that typical non-pensioner household incomes will grow by just 1 per cent in real terms between 2024-25 and 2029-30, a cash gain of only around £300. This would amount to zero growth across the full decade, following a turbulent first half marked by the Covid-19 pandemic and the cost-of-living crisis. The weakest outlook is for those at the bottom of the income distribution. The poorest 10 per cent of non-pensioner households are projected to be 8 per cent worse off in 2029-30 compared to 2019-20, a loss of around £1,000. Meanwhile, incomes for the bottom half overall are expected to fall by 2 per cent over the decade, whereas the top half could see a slight rise of 1 per cent. Pensioners and outright homeowners are among the few groups likely to see positive growth. Pensioner incomes are projected to rise by 5 per cent between 2024-25 and 2029-30, largely due to the continuation of the triple lock on the state pension. By contrast, private renters are expected to see incomes fall by 2 per cent and mortgagors by 1 per cent over the same period. Children, in particular, are expected to suffer, with their typical household income projected to be 2 per cent lower in 2029-30 than in 2019-20. Policy choices and economic risks ahead The report warns that current government policies, including the continuation of the two-child benefit limit, frozen income tax thresholds, and rising council tax, are set to suppress income growth. Under existing policies, child poverty is expected to rise from 31 per cent in 2023-24 to 34 per cent by the end of the decade, representing a record 4.8 million children in poverty. However, the Resolution Foundation highlights that alternative policy decisions could significantly alter the trajectory. For instance, scrapping the two-child limit could reverse the expected rise in child poverty and deliver modest income growth for the poorest families, even if funded by tax increases. More optimistic economic scenarios, including stronger pay growth and higher employment, could also improve outcomes. In such a case, median incomes could rise by up to 3 per cent between 2024-25 and 2029-30, still historically weak, but better than the central forecast. Public concern reflects hard realities The bleak projections come amid widespread public anxiety. According to recent surveys cited in the report, 86 per cent of Britons view the cost of living as the UK’s most pressing issue, with a record 26 per cent saying they are struggling to live on their income, up from 16 per cent in 2018. Despite strong earnings growth in recent years, rising inflation, high housing costs, and policy headwinds have eroded real income gains. Without substantial changes, the 2020s could mark a generational low point for British household living standards. “The government’s goal of raising living standards is welcome but unambitious,” said Adam Corlett, lead author of the report. “Delivering noticeable income growth for a broad range of voters will require targeted measures for the poorest as well as sustained economic growth.”

The weakest outlook is for those at the bottom of the income distribution. The poorest 10 per cent of non-pensioner households are projected to be 8 per cent worse off in 2029-30 compared to 2019-20.

UK’s bleak living standards forecast: Stagnating growth, rising poverty

The UK government on Thursday introduced a new&nbsp;trade strategy designed to strengthen British exports while tightening safeguards against the threat of cheap foreign imports. The move comes amid rising global uncertainty and renewed protectionism triggered by the US tariff wave under President Donald Trump.<h2>What is Britain's new trade plan?&nbsp;</h2>Unveiled at the British Chambers of Commerce (BCC) conference in London, the strategy outlines a dual approach: expanding export support for UK firms while reinforcing trade defences to ensure domestic industries remain competitive.&nbsp;Business Secretary Jonathan Reynolds said the initiative is aimed at “ensuring British businesses are protected from harm”, as quoted by Reuters. According to the strategy, the UK will increase government-backed financing for exporters and provide assistance in navigating complex trade regulations—especially for small and medium-sized enterprises (SMEs).<h2>Concerns over redirected exports amid US tariffs</h2>The timing of the announcement follows rising concerns that goods originally intended for the US, particularly steel and electric vehicles, may be diverted to the UK, after President Trump’s new tariffs made American markets costlier for foreign producers. Reuters reports that British manufacturers fear a potential influx of underpriced imports, particularly from China, as global supply chains reroute. Sectors such as automotive and steel have called for urgent measures to prevent market distortion.&nbsp;Unlike the European Union, the UK has not imposed high tariffs on Chinese-made electric vehicles, and its existing steel import safeguards are due to expire in 2026.<h2>Trade defence under review</h2>Officials have signalled an upcoming review of trade remedy tools managed by the Trade Remedies Authority (TRA). While the UK’s current mechanisms allow for countermeasures against dumping or subsidies, industry groups say enforcement has been slow and limited in scope.&nbsp;According to Financial Times, British steelmakers are urging the government to extend or replace current safeguards and consider treating certain sectors, such as domestic steel production, as strategic.<h2>Focus on services, India trade deal</h2>The strategy also highlights a renewed focus on expanding UK services exports, which already account for over £500 billion annually, as per Financial Times. Officials pointed to the recently concluded UK–India free trade agreement as a key success. The deal is expected to increase bilateral trade by over £25 billion per year by 2040.&nbsp;The government also referenced improvements in post-Brexit trading terms with the European Union and a new tariff agreement with the US as signs of diplomatic progress.<h2>Closing the tax-free loophole on low-value imports</h2>The UK Treasury is reviewing the “de minimis” rule, which currently allows goods worth under £135 to enter the UK without import taxes. Retailers argue that this loophole is being exploited by foreign e-commerce firms, including Shein and Temu, to undercut local sellers.&nbsp;As per The Guardian, Andrew Opie of the British Retail Consortium called for “swift action” to prevent misuse of the rule, originally intended for consumers but now increasingly leveraged for commercial advantage.<h2>What’s next?</h2>The government’s trade policy update reflects a shift toward greater responsiveness in a changing global environment. With protectionist measures spreading across major economies and geopolitical risks reshaping supply chains, UK officials say the new plan aims to strike a balance, supporting exporters while defending vulnerable sectors.&nbsp;The coming months will be key as the UK reviews steel safeguards, monitors redirected trade flows, and implements changes to low-value import&nbsp;rules.&nbsp;&nbsp;(With inputs from the agencies) &nbsp;

Amid Trump-led US tariff surge, Britain tightens trade defences and eyes redirected Chinese exports while expanding support for SMEs and services.

The UK government on Thursday introduced a new trade strategy designed to strengthen British exports while tightening safeguards against the threat of cheap foreign imports. The move comes amid rising global uncertainty and renewed protectionism triggered by the US tariff wave under President Donald Trump. What is Britain's new trade plan? Unveiled at the British Chambers of Commerce (BCC) conference in London, the strategy outlines a dual approach: expanding export support for UK firms while reinforcing trade defences to ensure domestic industries remain competitive. Business Secretary Jonathan Reynolds said the initiative is aimed at “ensuring British businesses are protected from harm”, as quoted by Reuters. According to the strategy, the UK will increase government-backed financing for exporters and provide assistance in navigating complex trade regulations—especially for small and medium-sized enterprises (SMEs). Concerns over redirected exports amid US tariffs The timing of the announcement follows rising concerns that goods originally intended for the US, particularly steel and electric vehicles, may be diverted to the UK, after President Trump’s new tariffs made American markets costlier for foreign producers. Reuters reports that British manufacturers fear a potential influx of underpriced imports, particularly from China, as global supply chains reroute. Sectors such as automotive and steel have called for urgent measures to prevent market distortion. Unlike the European Union, the UK has not imposed high tariffs on Chinese-made electric vehicles, and its existing steel import safeguards are due to expire in 2026. Trade defence under review Officials have signalled an upcoming review of trade remedy tools managed by the Trade Remedies Authority (TRA). While the UK’s current mechanisms allow for countermeasures against dumping or subsidies, industry groups say enforcement has been slow and limited in scope. According to Financial Times, British steelmakers are urging the government to extend or replace current safeguards and consider treating certain sectors, such as domestic steel production, as strategic. Focus on services, India trade deal The strategy also highlights a renewed focus on expanding UK services exports, which already account for over £500 billion annually, as per Financial Times. Officials pointed to the recently concluded UK–India free trade agreement as a key success. The deal is expected to increase bilateral trade by over £25 billion per year by 2040. The government also referenced improvements in post-Brexit trading terms with the European Union and a new tariff agreement with the US as signs of diplomatic progress. Closing the tax-free loophole on low-value imports The UK Treasury is reviewing the “de minimis” rule, which currently allows goods worth under £135 to enter the UK without import taxes. Retailers argue that this loophole is being exploited by foreign e-commerce firms, including Shein and Temu, to undercut local sellers. As per The Guardian, Andrew Opie of the British Retail Consortium called for “swift action” to prevent misuse of the rule, originally intended for consumers but now increasingly leveraged for commercial advantage. What’s next? The government’s trade policy update reflects a shift toward greater responsiveness in a changing global environment. With protectionist measures spreading across major economies and geopolitical risks reshaping supply chains, UK officials say the new plan aims to strike a balance, supporting exporters while defending vulnerable sectors. The coming months will be key as the UK reviews steel safeguards, monitors redirected trade flows, and implements changes to low-value import rules. (With inputs from the agencies)

UK unveils new trade strategy to boost exports and shield domestic industries from cheap foreign imports.

UK unveils trade plan to support exporters, guard against cheap imports

Meta Platforms secured a legal win on June 25 in a copyright case involving the use of books to train its generative AI model, Llama. Thirteen authors, including comedian Sarah Silverman and novelist Ta-Nehisi Coates, had alleged that Meta infringed on their copyrights by using pirated versions of their works without consent or compensation. However, US District Judge Vince Chhabria ruled that the plaintiffs failed to present a compelling legal argument that Meta’s actions violated US copyright law.The case, one of the first major legal battles testing the limits of fair use in the AI era, revolved around whether training AI models on copyrighted content without permission constitutes infringement. In his ruling, Judge Chhabria emphasised that the fair use doctrine protected Meta’s use of the books in this instance, noting that the plaintiffs could not prove that the company’s practices caused meaningful harm to the market for their works.“On this record, Meta has defeated the plaintiffs’ half-hearted argument that its copying causes or threatens significant market harm,” Chhabria wrote. He acknowledged that using copyrighted materials without permission is “generally illegal” but criticised the authors’ legal strategy as poorly developed. “This ruling does not stand for the proposition that Meta’s use of copyrighted materials to train its language models is lawful,” Chhabria clarified. “It stands only for the proposition that these plaintiffs made the wrong arguments and failed to develop a record in support of the right one.”<h2>Fair use doctrine shields Meta for now</h2>Meta’s core legal defence relied on the fair use doctrine, a provision of US copyright law that permits limited use of copyrighted material without the rights holder’s permission for purposes such as criticism, commentary, or transformative uses. Meta argued that its AI training process was transformative, as it did not reproduce the original works but instead used them to teach the AI to generate new, original text.“No one can use Llama to read Sarah Silverman’s description of her childhood or Junot Diaz’s story of a Dominican boy growing up in New Jersey,” Meta’s attorneys wrote in filings. The company also claimed that the authors’ works could not be substituted by AI-generated content and that there was no evidence of market harm. “After nearly two years of litigation, there still is no evidence that anyone has ever used Llama as a substitute for reading Plaintiffs’ books, or that they even could,” the lawyers stated.While Chhabria acknowledged that Meta’s use may have economic implications, he noted that no significant harm was demonstrated in court. He did, however, criticise Meta’s assertion that banning the use of copyrighted works in AI training would “badly disserve” the public interest or stifle innovation. “This is nonsense,” Chhabria wrote, calling Meta’s claim exaggerated and speculative.<h2>Ruling limited in scope, new lawsuits likely</h2>Though Meta prevailed in this case, the ruling is not a sweeping endorsement of AI companies’ use of copyrighted materials. Judge Chhabria stressed that the decision applied only to the 13 plaintiffs and did not provide blanket legal protection for Meta’s practices.“In the grand scheme of things, the consequences of this ruling are limited,” he wrote. “This is not a class action, so the ruling only affects the rights of these thirteen authors, not the countless others whose works Meta used to train its models.” Chhabria also left open the possibility of future legal challenges, suggesting that a more thoroughly developed case could reach a different outcome.The ruling came just days after another case involving AI firm Anthropic, in which Judge William Alsup found that the company’s use of copyrighted books to train its Claude chatbot was also “transformative” and qualified for fair use. However, that case will still go to trial over allegations that Anthropic illegally downloaded pirated books from online sources.Chhabria criticised Alsup’s decision for focusing too heavily on the transformative nature of AI without adequately weighing potential harm to content creators. He expressed concern about the broader implications of generative AI on creative markets, saying such tools could undermine the incentive to produce original work. “By training generative AI models with copyrighted works, companies are creating something that often will dramatically undermine the market for those works,” Chhabria noted.<h2>More legal challenges loom for AI companies</h2>The recent ruling does not close the book on legal scrutiny of AI training practices. The plaintiffs’ attorneys argued that Meta used pirated versions of books from “shadow libraries”, with internal Meta documents showing the decision was escalated to CEO Mark Zuckerberg due to its potential legal risk. A separate claim related to Meta’s alleged illegal distribution of copyrighted works via torrenting is still pending.Meta has joined a growing list of tech companies, including OpenAI, Microsoft, and Anthropic, that face lawsuits from authors, news organisations, and other rights holders over the unauthorised use of copyrighted materials in AI training. As generative AI continues to disrupt content creation industries, more complex legal battles over the limits of fair use are expected to emerge.

Though Meta prevailed in this case, Judge Chhabria stressed that the decision applied only to the 13 plaintiffs and did not provide blanket legal protection for Meta’s practices.

Meta Platforms secured a legal win on June 25 in a copyright case involving the use of books to train its generative AI model, Llama. Thirteen authors, including comedian Sarah Silverman and novelist Ta-Nehisi Coates, had alleged that Meta infringed on their copyrights by using pirated versions of their works without consent or compensation. However, US District Judge Vince Chhabria ruled that the plaintiffs failed to present a compelling legal argument that Meta’s actions violated US copyright law. The case, one of the first major legal battles testing the limits of fair use in the AI era, revolved around whether training AI models on copyrighted content without permission constitutes infringement. In his ruling, Judge Chhabria emphasised that the fair use doctrine protected Meta’s use of the books in this instance, noting that the plaintiffs could not prove that the company’s practices caused meaningful harm to the market for their works. “On this record, Meta has defeated the plaintiffs’ half-hearted argument that its copying causes or threatens significant market harm,” Chhabria wrote. He acknowledged that using copyrighted materials without permission is “generally illegal” but criticised the authors’ legal strategy as poorly developed. “This ruling does not stand for the proposition that Meta’s use of copyrighted materials to train its language models is lawful,” Chhabria clarified. “It stands only for the proposition that these plaintiffs made the wrong arguments and failed to develop a record in support of the right one.” Fair use doctrine shields Meta for now Meta’s core legal defence relied on the fair use doctrine, a provision of US copyright law that permits limited use of copyrighted material without the rights holder’s permission for purposes such as criticism, commentary, or transformative uses. Meta argued that its AI training process was transformative, as it did not reproduce the original works but instead used them to teach the AI to generate new, original text. “No one can use Llama to read Sarah Silverman’s description of her childhood or Junot Diaz’s story of a Dominican boy growing up in New Jersey,” Meta’s attorneys wrote in filings. The company also claimed that the authors’ works could not be substituted by AI-generated content and that there was no evidence of market harm. “After nearly two years of litigation, there still is no evidence that anyone has ever used Llama as a substitute for reading Plaintiffs’ books, or that they even could,” the lawyers stated. While Chhabria acknowledged that Meta’s use may have economic implications, he noted that no significant harm was demonstrated in court. He did, however, criticise Meta’s assertion that banning the use of copyrighted works in AI training would “badly disserve” the public interest or stifle innovation. “This is nonsense,” Chhabria wrote, calling Meta’s claim exaggerated and speculative. Ruling limited in scope, new lawsuits likely Though Meta prevailed in this case, the ruling is not a sweeping endorsement of AI companies’ use of copyrighted materials. Judge Chhabria stressed that the decision applied only to the 13 plaintiffs and did not provide blanket legal protection for Meta’s practices. “In the grand scheme of things, the consequences of this ruling are limited,” he wrote. “This is not a class action, so the ruling only affects the rights of these thirteen authors, not the countless others whose works Meta used to train its models.” Chhabria also left open the possibility of future legal challenges, suggesting that a more thoroughly developed case could reach a different outcome. The ruling came just days after another case involving AI firm Anthropic, in which Judge William Alsup found that the company’s use of copyrighted books to train its Claude chatbot was also “transformative” and qualified for fair use. However, that case will still go to trial over allegations that Anthropic illegally downloaded pirated books from online sources. Chhabria criticised Alsup’s decision for focusing too heavily on the transformative nature of AI without adequately weighing potential harm to content creators. He expressed concern about the broader implications of generative AI on creative markets, saying such tools could undermine the incentive to produce original work. “By training generative AI models with copyrighted works, companies are creating something that often will dramatically undermine the market for those works,” Chhabria noted. More legal challenges loom for AI companies The recent ruling does not close the book on legal scrutiny of AI training practices. The plaintiffs’ attorneys argued that Meta used pirated versions of books from “shadow libraries”, with internal Meta documents showing the decision was escalated to CEO Mark Zuckerberg due to its potential legal risk. A separate claim related to Meta’s alleged illegal distribution of copyrighted works via torrenting is still pending. Meta has joined a growing list of tech companies, including OpenAI, Microsoft, and Anthropic, that face lawsuits from authors, news organisations, and other rights holders over the unauthorised use of copyrighted materials in AI training. As generative AI continues to disrupt content creation industries, more complex legal battles over the limits of fair use are expected to emerge.

Though Meta prevailed in this case, Judge Chhabria stressed that the decision applied only to the 13 plaintiffs and did not provide blanket legal protection for Meta’s practices.

Meta wins copyright lawsuit over AI training, but judge signals door still open for future claims

Nvidia surged to a record high on Wednesday, becoming the world’s most valuable company once again, as investor optimism over the next phase of artificial intelligence (AI) adoption drove a fresh rally in the US tech sector. The chipmaker’s stock jumped over 4 per cent to close at $154.10, pushing its market capitalisation to $3.76 trillion, surpassing Microsoft’s $3.65 trillion valuation.&nbsp;&nbsp;This marks another milestone for the California-based semiconductor giant, which is at the centre of the global AI boom.<h2>Analyst backs ‘Golden Wave’ of Gen AI</h2>The latest surge in Nvidia’s stock followed a bullish research note by Loop Capital, which raised its price target on the company from $175 to $250, citing stronger-than-expected demand for generative AI. “Our work suggests we are entering the next ‘Golden Wave’ of Gen AI adoption and Nvidia is at the front-end of another material leg of stronger-than-anticipated demand,” said Ananda Baruah, analyst at Loop Capital, as quoted by Reuters.&nbsp;Nvidia is widely seen as the global leader in AI chips used to train and run large language models (LLMs), and has become a bellwether for investor sentiment in the rapidly evolving AI ecosystem.<h2>Market rotation back to AI trade</h2>Nvidia’s rally comes as the broader US stock market returns to the AI-driven trade that dominated headlines last year. The S&amp;P 500 technology index climbed 0.9 per cent to a new all-time high on Wednesday and is now up nearly 6 per cent in 2025. The company has seen a 60 per cent rebound from its April lows, when US markets were rattled by President Donald Trump’s global tariff announcements. Since then, investor confidence has returned on expectations that the White House will negotiate trade deals to soften the blow of new tariffs.&nbsp;Despite its eye-popping valuation, Nvidia is currently trading at around 30 times forward earnings, according to LSEG data. That’s actually below its five-year average of 40—reflecting the fact that analysts have consistently raised their earnings forecasts even faster than the stock has appreciated.<h2>Tech titans continue value race</h2>Nvidia’s re-ascent to the top of the market cap leaderboard reflects an ongoing tug-of-war among the “Big Three” tech giants, Nvidia, Microsoft, and Apple. The three have rotated positions as the world’s most valuable publicly listed companies over the past year.&nbsp;Microsoft had briefly reclaimed the lead in early June, following strong enterprise cloud performance. Meanwhile, Apple’s stock edged up 0.4 per cent on Wednesday, putting its valuation at approximately $3.0 trillion. With investors betting big on next-generation AI models, chipmakers like Nvidia remain central to the market narrative, bridging innovation in hardware, cloud computing, and software platforms.<h2>What's next?&nbsp;</h2>As global adoption of AI tools accelerates, from consumer applications to enterprise automation, Nvidia appears poised to remain the foundational infrastructure provider. Analysts now see the company not just as a chipmaker, but as a strategic enabler of the AI economy, drawing comparisons to what Microsoft was for software in the 1990s.&nbsp;With generative AI poised to reshape global productivity and geopolitics, Nvidia’s performance may continue to serve as a barometer for where the AI-driven economy is headed next.&nbsp;(With inputs from the agencies)&nbsp;

Driven by soaring Gen AI demand and bullish forecasts, Nvidia hits record valuation of $3.76 trillion, edging past Microsoft in the Big Tech value race.

Nvidia surged to a record high on Wednesday, becoming the world’s most valuable company once again, as investor optimism over the next phase of artificial intelligence (AI) adoption drove a fresh rally in the US tech sector. The chipmaker’s stock jumped over 4 per cent to close at $154.10, pushing its market capitalisation to $3.76 trillion, surpassing Microsoft’s $3.65 trillion valuation. This marks another milestone for the California-based semiconductor giant, which is at the centre of the global AI boom. Analyst backs ‘Golden Wave’ of Gen AI The latest surge in Nvidia’s stock followed a bullish research note by Loop Capital, which raised its price target on the company from $175 to $250, citing stronger-than-expected demand for generative AI. “Our work suggests we are entering the next ‘Golden Wave’ of Gen AI adoption and Nvidia is at the front-end of another material leg of stronger-than-anticipated demand,” said Ananda Baruah, analyst at Loop Capital, as quoted by Reuters. Nvidia is widely seen as the global leader in AI chips used to train and run large language models (LLMs), and has become a bellwether for investor sentiment in the rapidly evolving AI ecosystem. Market rotation back to AI trade Nvidia’s rally comes as the broader US stock market returns to the AI-driven trade that dominated headlines last year. The S&P 500 technology index climbed 0.9 per cent to a new all-time high on Wednesday and is now up nearly 6 per cent in 2025. The company has seen a 60 per cent rebound from its April lows, when US markets were rattled by President Donald Trump’s global tariff announcements. Since then, investor confidence has returned on expectations that the White House will negotiate trade deals to soften the blow of new tariffs. Despite its eye-popping valuation, Nvidia is currently trading at around 30 times forward earnings, according to LSEG data. That’s actually below its five-year average of 40—reflecting the fact that analysts have consistently raised their earnings forecasts even faster than the stock has appreciated. Tech titans continue value race Nvidia’s re-ascent to the top of the market cap leaderboard reflects an ongoing tug-of-war among the “Big Three” tech giants, Nvidia, Microsoft, and Apple. The three have rotated positions as the world’s most valuable publicly listed companies over the past year. Microsoft had briefly reclaimed the lead in early June, following strong enterprise cloud performance. Meanwhile, Apple’s stock edged up 0.4 per cent on Wednesday, putting its valuation at approximately $3.0 trillion. With investors betting big on next-generation AI models, chipmakers like Nvidia remain central to the market narrative, bridging innovation in hardware, cloud computing, and software platforms. What's next? As global adoption of AI tools accelerates, from consumer applications to enterprise automation, Nvidia appears poised to remain the foundational infrastructure provider. Analysts now see the company not just as a chipmaker, but as a strategic enabler of the AI economy, drawing comparisons to what Microsoft was for software in the 1990s. With generative AI poised to reshape global productivity and geopolitics, Nvidia’s performance may continue to serve as a barometer for where the AI-driven economy is headed next. (With inputs from the agencies)

As Wall Street rotates back to the AI trade, Nvidia’s rally signals renewed investor confidence in Gen AI's next growth wave and tech sector dominance.

Nvidia hits all-time high as analyst predicts AI-driven ‘Golden Wave’

World Liberty Financial (WLF), the Donald Trump-linked decentralised finance (DeFi) platform, is preparing to release an independent audit of its stablecoin USD1 and will soon launch a new mobile app aimed at retail crypto investors. WFL co-founder Zak Folkman shared the update during the Permissionless Conference in Brooklyn on June 25. Folkman confirmed that the company had completed its first accounting attestation and would publish the report within days. The audit will detail the reserves backing USD1, which include US dollar deposits, treasuries, and cash equivalents. BitGo is acting as the custodian, and WLF will begin publishing monthly reserve updates to enhance transparency.USD1 has reached a market cap of $2.2 billion since its March launch and operates on Ethereum, BNB Chain, and TRON. “We’re going to have very transparent auditing from a financial level,” Folkman said, emphasising WLF’s commitment to investor confidence. In addition, WLF is developing a user-friendly mobile app designed to simplify crypto use for mainstream investors. The app is expected to go live in the coming weeks.Perhaps most notably, Folkman hinted that the platform’s governance token, known as WLFI, could soon become available for trading. “If you pay attention over the next couple of weeks, I think everyone’s going to be very, very happy,” he said.<h2>Trump ties raise ethics concerns</h2>WLFI and USD1 have generated hundreds of millions of dollars in revenue for Donald Trump’s family business, intensifying scrutiny from lawmakers and watchdog groups. Critics have raised ethical concerns about potential conflicts of interest, especially as Trump advocates for looser crypto regulations during his presidential campaign.The Trump family reportedly reduced its stake in WLF from 60 per cent to 40 per cent earlier this month, netting over $130 million from the sale and bringing in $190 million in total. WLFI tokens, which provide governance rights, were initially sold to raise capital but were not listed on exchanges. Despite criticism, adoption of USD1 continues to grow. Airdrops and large-scale investments, such as a $2 billion transaction by UAE-based MGX and a $4 million giveaway reaching 85,000 wallets, have helped solidify its presence in the stablecoin market.<h2>Stablecoin landscape under scrutiny</h2>The rise of USD1 comes amid increasing global regulatory scrutiny of stablecoins. On June 24, the Bank for International Settlements (BIS) issued its strongest warning yet, urging nations to regulate stablecoins and accelerate central bank digital currency development. BIS officials warned that stablecoins lack transparency, pose risks to monetary sovereignty, and could trigger “fire sales” if reserve assets collapse.&nbsp;The group advocated for “tokenised unified ledgers” to integrate central bank reserves and government bonds into programmable, secure platforms. As the BIS calls for bold action, WLF’s moves highlight how political figures are increasingly intertwining with high-growth crypto ventures, pushing the boundaries of both financial innovation and regulatory oversight.

The stablecoin audit will detail the reserves backing USD1, which include US dollar deposits, treasuries, and cash equivalents. BitGo is acting as the custodian, and WLF will begin publishing monthly reserve updates to enhance transparency.

World Liberty Financial (WLF), the Donald Trump-linked decentralised finance (DeFi) platform, is preparing to release an independent audit of its stablecoin USD1 and will soon launch a new mobile app aimed at retail crypto investors. WFL co-founder Zak Folkman shared the update during the Permissionless Conference in Brooklyn on June 25. Folkman confirmed that the company had completed its first accounting attestation and would publish the report within days. The audit will detail the reserves backing USD1, which include US dollar deposits, treasuries, and cash equivalents. BitGo is acting as the custodian, and WLF will begin publishing monthly reserve updates to enhance transparency. USD1 has reached a market cap of $2.2 billion since its March launch and operates on Ethereum, BNB Chain, and TRON. “We’re going to have very transparent auditing from a financial level,” Folkman said, emphasising WLF’s commitment to investor confidence. In addition, WLF is developing a user-friendly mobile app designed to simplify crypto use for mainstream investors. The app is expected to go live in the coming weeks. Perhaps most notably, Folkman hinted that the platform’s governance token, known as WLFI, could soon become available for trading. “If you pay attention over the next couple of weeks, I think everyone’s going to be very, very happy,” he said. Trump ties raise ethics concerns WLFI and USD1 have generated hundreds of millions of dollars in revenue for Donald Trump’s family business, intensifying scrutiny from lawmakers and watchdog groups. Critics have raised ethical concerns about potential conflicts of interest, especially as Trump advocates for looser crypto regulations during his presidential campaign. The Trump family reportedly reduced its stake in WLF from 60 per cent to 40 per cent earlier this month, netting over $130 million from the sale and bringing in $190 million in total. WLFI tokens, which provide governance rights, were initially sold to raise capital but were not listed on exchanges. Despite criticism, adoption of USD1 continues to grow. Airdrops and large-scale investments, such as a $2 billion transaction by UAE-based MGX and a $4 million giveaway reaching 85,000 wallets, have helped solidify its presence in the stablecoin market. Stablecoin landscape under scrutiny The rise of USD1 comes amid increasing global regulatory scrutiny of stablecoins. On June 24, the Bank for International Settlements (BIS) issued its strongest warning yet, urging nations to regulate stablecoins and accelerate central bank digital currency development. BIS officials warned that stablecoins lack transparency, pose risks to monetary sovereignty, and could trigger “fire sales” if reserve assets collapse. The group advocated for “tokenised unified ledgers” to integrate central bank reserves and government bonds into programmable, secure platforms. As the BIS calls for bold action, WLF’s moves highlight how political figures are increasingly intertwining with high-growth crypto ventures, pushing the boundaries of both financial innovation and regulatory oversight.

The stablecoin audit will detail the reserves backing USD1, which include US dollar deposits, treasuries, and cash equivalents. BitGo is acting as the custodian, and WLF will begin publishing monthly reserve updates to enhance transparency.

Trump-linked crypto firm plans stablecoin audit and new investor app