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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Canada rescinds tax hitting US tech firms: govt

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

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

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

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

US housing market faces mounting pressure as home prices slide

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

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

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

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

Meta poaches top OpenAI researchers for superintelligence push

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

China expands flood compensation as extreme rain triggers social tensions

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

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

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

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

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

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

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

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

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

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

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

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

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

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

India restricts Bangladesh jute imports via land borders amid frayed ties

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

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

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

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

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

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

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

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

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

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

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