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The European Union has sharply criticised US President Donald Trump’s decision to double tariffs on imported steel and aluminium, calling the move a blow to global trade stability. The European Commission reportedly warned that it is prepared to activate countermeasures if a negotiated solution is not reached soon.&nbsp;According to Reuters, Trump on Friday announced that the US would raise tariffs on steel and aluminium imports from 25 per cent to 50 per cent, citing national security and the need to protect American industries.&nbsp;&nbsp;The tariff hike is seen as a major escalation in the ongoing trade conflict between Washington and its allies.&nbsp;“We strongly regret the announced increase of US tariffs on steel imports from 25 per cent to 50 per cent,” a European Commission spokesperson said in an emailed statement, as quoted by Reuters.&nbsp;The Commission noted that the decision “adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic.” It further added that the tariff hike undermines efforts currently underway to reach a negotiated resolution between the EU and US.<h2>EU prepares retaliatory measures</h2>The EU had earlier paused its own counter-tariff actions in order to allow room for diplomatic talks. However, following Trump’s latest announcement, the Commission said it was finalising internal consultations on expanding its trade defence measures.&nbsp;“The EU is prepared to impose countermeasures, including in response to the latest US tariff increase,” the spokesperson said, according to Reuters.&nbsp;If talks fail, both existing and newly drafted EU tariffs will take effect on 14 July—or earlier if required. These retaliatory measures are expected to target key American exports, similar to past EU responses during previous tariff disputes.<h2>Impact on transatlantic trade ties</h2>Trump’s decision comes amid growing friction with both China and the EU on multiple trade fronts. The doubling of tariffs is not only expected to raise input costs for US manufacturers but also risks damaging already fragile EU-US trade relations.&nbsp;European officials view the move as part of a broader trend in Trump’s protectionist trade policies, which have also included hefty tariffs on Chinese goods and threats against auto imports from Germany and Japan.&nbsp;The European Commission reiterated that it remains open to discussions but stressed the importance of a fair and rules-based global trading system.&nbsp;“The tariff increase also undermines ongoing efforts to reach a negotiated solution,” the Commission said, per Reuters. &nbsp;

The European Commission has warned that it is prepared to activate countermeasures if a negotiated solution is not reached soon. 


The European Union has sharply criticised US President Donald Trump’s decision to double tariffs on imported steel and aluminium, calling the move a blow to global trade stability. The European Commission reportedly warned that it is prepared to activate countermeasures if a negotiated solution is not reached soon. According to Reuters, Trump on Friday announced that the US would raise tariffs on steel and aluminium imports from 25 per cent to 50 per cent, citing national security and the need to protect American industries. The tariff hike is seen as a major escalation in the ongoing trade conflict between Washington and its allies. “We strongly regret the announced increase of US tariffs on steel imports from 25 per cent to 50 per cent,” a European Commission spokesperson said in an emailed statement, as quoted by Reuters. The Commission noted that the decision “adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic.” It further added that the tariff hike undermines efforts currently underway to reach a negotiated resolution between the EU and US. EU prepares retaliatory measures The EU had earlier paused its own counter-tariff actions in order to allow room for diplomatic talks. However, following Trump’s latest announcement, the Commission said it was finalising internal consultations on expanding its trade defence measures. “The EU is prepared to impose countermeasures, including in response to the latest US tariff increase,” the spokesperson said, according to Reuters. If talks fail, both existing and newly drafted EU tariffs will take effect on 14 July—or earlier if required. These retaliatory measures are expected to target key American exports, similar to past EU responses during previous tariff disputes. Impact on transatlantic trade ties Trump’s decision comes amid growing friction with both China and the EU on multiple trade fronts. The doubling of tariffs is not only expected to raise input costs for US manufacturers but also risks damaging already fragile EU-US trade relations. European officials view the move as part of a broader trend in Trump’s protectionist trade policies, which have also included hefty tariffs on Chinese goods and threats against auto imports from Germany and Japan. The European Commission reiterated that it remains open to discussions but stressed the importance of a fair and rules-based global trading system. “The tariff increase also undermines ongoing efforts to reach a negotiated solution,” the Commission said, per Reuters.

The European Union has strongly criticized US President Donald Trump's decision to double tariffs on imported steel and aluminium, arguing it is a blow to global trade stability.

EU warns of countermeasures as Trump doubles US steel tariffs

In a move that could reshape the global oil landscape yet again, OPEC+ is considering increasing its crude output by over 411,000 barrels per day (bpd) in July, as per sources cited by Reuters.&nbsp;&nbsp;This comes amid rising internal tensions within the group and growing geopolitical pressures, particularly from overproducing members such as Kazakhstan.&nbsp;The alliance, which includes members of the Organisation of the Petroleum Exporting Countries (OPEC) and key non-OPEC allies like Russia, has already hiked output by 411,000 bpd for both May and June 2025.&nbsp;&nbsp;However, the July increase could be larger, according to four sources familiar with ongoing talks, as reported by Reuters on 31 May.<h2>Discontent within OPEC+&nbsp;stirs push for more output</h2>Eight major producers within OPEC+, including Saudi Arabia, Russia, and Kazakhstan have been ramping up production more quickly than initially agreed, even as oil prices face downward pressure.&nbsp;According to Reuters, this strategy is partly designed to discipline non-compliant members and recapture lost market share in a volatile energy environment.&nbsp;Kazakhstan, in particular, has stirred unease. On Thursday, it publicly announced that it would not cut output—a move seen as open defiance of OPEC+ norms. “Kazakhstan’s repeated public displays of production defiance do raise the risk of an even bigger output increase,” Helima Croft, head of global commodity strategy at RBC Capital Markets, told Reuters.&nbsp;&nbsp;However, she added that she still sees a 411,000-bpd hike in July as the most likely scenario.The group’s internal rifts are expected to dominate the upcoming virtual meeting scheduled for 0900 GMT on Saturday, with output policy for July being the central point of debate.<h2>Oil prices under pressure</h2>OPEC+’s supply dynamics are unfolding in the backdrop of falling oil prices. In April 2025, global oil prices slumped to a four-year low, dipping below $60 per barrel, largely due to the group’s earlier announcement of tripling output and growing concerns about a global economic slowdown.&nbsp;&nbsp;The price of Brent crude closed just below $63 per barrel on Friday, Reuters reported.&nbsp;Adding to market jitters are renewed fears over US-led trade tensions. President Donald Trump’s tariffs on key exports from China, India, and Pakistan have reignited concerns about a wider slowdown in demand, especially in emerging markets.<h2>Russia and Saudi Arabia: Pulling the levers</h2>According to Reuters, Saudi Arabia, and Russia, the two largest producers in the group are leading the push to increase output and pressure non-compliant allies.&nbsp;&nbsp;Sources reported by Reuters suggest this is a deliberate strategy to bring rogue producers like Kazakhstan in line by essentially flooding the market and reducing their price advantage.&nbsp;Meanwhile, some overproducing members are being asked to offset their extra output in upcoming months, but Kazakhstan’s stance suggests it may not comply.&nbsp;&nbsp;The implications could be far-reaching, as persistent overproduction may reportedly force Saudi Arabia and Russia to leverage larger group-wide hikes to rebalance the equation.&nbsp;In an earlier statement on Tuesday, UAE’s Energy Minister Suhail Mohamed Al Mazrouei said OPEC+ was doing its best to “balance the oil market”, but did not reveal specific plans for July output, as reported by Reuters.&nbsp;<h2>Industry outlook</h2>The global oil industry is at a critical juncture. The transition to green energy, increasing electric vehicle penetration, and policy headwinds in the West have already dampened long-term demand projections.&nbsp;Now, with reportedly&nbsp;internal fractures within OPEC+ and rising geopolitical uncertainty, the near-term future remains equally murky.&nbsp;For now, the world waits to see whether OPEC+ will proceed with a moderate hike of 411,000 bpd or a larger-than-expected increase, which could test the group’s unity and influence in global markets. &nbsp; &nbsp;

The alliance, which includes OPEC members and non-OPEC allies like Russia, has already hiked output by 411,000 bpd for both May and June 2025. 

In a move that could reshape the global oil landscape yet again, OPEC+ is considering increasing its crude output by over 411,000 barrels per day (bpd) in July, as per sources cited by Reuters. This comes amid rising internal tensions within the group and growing geopolitical pressures, particularly from overproducing members such as Kazakhstan. The alliance, which includes members of the Organisation of the Petroleum Exporting Countries (OPEC) and key non-OPEC allies like Russia, has already hiked output by 411,000 bpd for both May and June 2025. However, the July increase could be larger, according to four sources familiar with ongoing talks, as reported by Reuters on 31 May. Discontent within OPEC+ stirs push for more output Eight major producers within OPEC+, including Saudi Arabia, Russia, and Kazakhstan have been ramping up production more quickly than initially agreed, even as oil prices face downward pressure. According to Reuters, this strategy is partly designed to discipline non-compliant members and recapture lost market share in a volatile energy environment. Kazakhstan, in particular, has stirred unease. On Thursday, it publicly announced that it would not cut output—a move seen as open defiance of OPEC+ norms. “Kazakhstan’s repeated public displays of production defiance do raise the risk of an even bigger output increase,” Helima Croft, head of global commodity strategy at RBC Capital Markets, told Reuters. However, she added that she still sees a 411,000-bpd hike in July as the most likely scenario. The group’s internal rifts are expected to dominate the upcoming virtual meeting scheduled for 0900 GMT on Saturday, with output policy for July being the central point of debate. Oil prices under pressure OPEC+’s supply dynamics are unfolding in the backdrop of falling oil prices. In April 2025, global oil prices slumped to a four-year low, dipping below $60 per barrel, largely due to the group’s earlier announcement of tripling output and growing concerns about a global economic slowdown. The price of Brent crude closed just below $63 per barrel on Friday, Reuters reported. Adding to market jitters are renewed fears over US-led trade tensions. President Donald Trump’s tariffs on key exports from China, India, and Pakistan have reignited concerns about a wider slowdown in demand, especially in emerging markets. Russia and Saudi Arabia: Pulling the levers According to Reuters, Saudi Arabia, and Russia, the two largest producers in the group are leading the push to increase output and pressure non-compliant allies. Sources reported by Reuters suggest this is a deliberate strategy to bring rogue producers like Kazakhstan in line by essentially flooding the market and reducing their price advantage. Meanwhile, some overproducing members are being asked to offset their extra output in upcoming months, but Kazakhstan’s stance suggests it may not comply. The implications could be far-reaching, as persistent overproduction may reportedly force Saudi Arabia and Russia to leverage larger group-wide hikes to rebalance the equation. In an earlier statement on Tuesday, UAE’s Energy Minister Suhail Mohamed Al Mazrouei said OPEC+ was doing its best to “balance the oil market”, but did not reveal specific plans for July output, as reported by Reuters. Industry outlook The global oil industry is at a critical juncture. The transition to green energy, increasing electric vehicle penetration, and policy headwinds in the West have already dampened long-term demand projections. Now, with reportedly internal fractures within OPEC+ and rising geopolitical uncertainty, the near-term future remains equally murky. For now, the world waits to see whether OPEC+ will proceed with a moderate hike of 411,000 bpd or a larger-than-expected increase, which could test the group’s unity and influence in global markets.

OPEC+ is reportedly considering increasing its crude output by over 411,000 barrels per day (bpd) in July, amid rising internal tensions and geopolitical pressures, particularly from overproducing members like Kazakhstan.&nbsp;

OPEC+ eyes fresh oil output hike: What it means for global energy markets

The United States saw a record-breaking decline in goods imports in April, as President Donald Trump’s sweeping tariffs began to reshape the country’s trade landscape. Imports plummeted by 19.8 per cent from March to $276.1 billion, the largest monthly drop since the Census Bureau began tracking the data in 1992, according to figures released on May 30.The collapse in imports followed a frenzied import rush in March, when businesses scrambled to stockpile foreign goods ahead of Trump’s so-called “liberation day” tariff hike announced for April 2. That front-loading sent the March trade deficit soaring to $162.3 billion, but the tide turned sharply in April as US companies slammed the brakes on new shipments.As a result, the goods trade deficit narrowed by 46 per cent to $87.6 billion, the smallest gap in 18 months. Exports, meanwhile, edged up 3.4 per cent to $188.5 billion, adding to the positive swing in trade data.&nbsp;Tariff turmoil and economic whiplash&nbsp;The abrupt reversal in trade volumes has distorted US economic readings. The import surge in March contributed to a 0.2 per cent annualised decline in first-quarter GDP, marking the country’s first contraction since 2022. However, economists now expect a rebound in the second quarter (Q2).The Atlanta Federal Reserve on May 30 revised its GDP forecast for the second quarter sharply upward, from 2.2 per cent to 3.8 per cent, citing the improvement in net trade.JPMorgan echoed the trend, upgrading its Q2 growth outlook to 4 per cent, though it cautioned that “swings in trade volumes may be making it difficult to measure underlying growth.” Over the first half of the year, the bank sees average growth at around 2 per cent.Consumer goods imports were hit hardest in April, falling 32 per cent to $69.6 billion. Industrial supply shipments dropped 31 per cent, and automotive imports slid 19 per cent, the Census Bureau said. Analysts believe declines in high-value categories such as pharmaceuticals, computer equipment, and precious metals drove much of the drop.Despite a recent US-China deal to temporarily reduce tariffs, the situation remains fluid. Trump accused Beijing on May 30 of “totally violating” the agreement via a Truth Social post, stoking fears of renewed friction.A US trade court briefly ruled the tariffs illegal earlier this week, but they were reinstated by a federal appeals court the following day, pending further review.Economists warn that volatility could persist in the coming months, suggesting that inventory drawdowns may dampen GDP growth before summer’s end.&nbsp;

Imports plummeted by 19.8 per cent from March to $276.1 billion, the largest monthly drop since the Census Bureau began tracking the data in 1992, according to figures released on May 30.

The United States saw a record-breaking decline in goods imports in April, as President Donald Trump’s sweeping tariffs began to reshape the country’s trade landscape. Imports plummeted by 19.8 per cent from March to $276.1 billion, the largest monthly drop since the Census Bureau began tracking the data in 1992, according to figures released on May 30. The collapse in imports followed a frenzied import rush in March, when businesses scrambled to stockpile foreign goods ahead of Trump’s so-called “liberation day” tariff hike announced for April 2. That front-loading sent the March trade deficit soaring to $162.3 billion, but the tide turned sharply in April as US companies slammed the brakes on new shipments. As a result, the goods trade deficit narrowed by 46 per cent to $87.6 billion, the smallest gap in 18 months. Exports, meanwhile, edged up 3.4 per cent to $188.5 billion, adding to the positive swing in trade data. Tariff turmoil and economic whiplash The abrupt reversal in trade volumes has distorted US economic readings. The import surge in March contributed to a 0.2 per cent annualised decline in first-quarter GDP, marking the country’s first contraction since 2022. However, economists now expect a rebound in the second quarter (Q2). The Atlanta Federal Reserve on May 30 revised its GDP forecast for the second quarter sharply upward, from 2.2 per cent to 3.8 per cent, citing the improvement in net trade. JPMorgan echoed the trend, upgrading its Q2 growth outlook to 4 per cent, though it cautioned that “swings in trade volumes may be making it difficult to measure underlying growth.” Over the first half of the year, the bank sees average growth at around 2 per cent. Consumer goods imports were hit hardest in April, falling 32 per cent to $69.6 billion. Industrial supply shipments dropped 31 per cent, and automotive imports slid 19 per cent, the Census Bureau said. Analysts believe declines in high-value categories such as pharmaceuticals, computer equipment, and precious metals drove much of the drop. Despite a recent US-China deal to temporarily reduce tariffs, the situation remains fluid. Trump accused Beijing on May 30 of “totally violating” the agreement via a Truth Social post, stoking fears of renewed friction. A US trade court briefly ruled the tariffs illegal earlier this week, but they were reinstated by a federal appeals court the following day, pending further review. Economists warn that volatility could persist in the coming months, suggesting that inventory drawdowns may dampen GDP growth before summer’s end.

Imports plummeted by 19.8 per cent from March to $276.1 billion, the largest monthly drop since the Census Bureau began tracking the data in 1992, according to figures released on May 30.

US goods imports plunge in April as tariffs bite, narrowing trade deficit sharply

As US President Donald Trump ramps up pressure on Chinese imports with plans to double tariffs on steel and aluminium, fresh turbulence is erupting in China’s auto industry.&nbsp;&nbsp;The world’s largest car market is facing intense price wars, a situation that Beijing reportedly now calls “unsustainable” and dangerous for long-term industrial health.&nbsp;According to Reuters, on Saturday, China’s Ministry of Industry and Information Technology (MIIT) issued a rare public warning, urging domestic automakers to stop “brutal price wars” that it says are damaging profitability and destabilising the sector, according to state news agency Xinhua.&nbsp;&nbsp;This comes at a critical moment. The global auto supply chain is already bracing for impact as the US under Trump signals a hard line on trade.&nbsp;&nbsp;Washington is preparing to double tariffs on Chinese steel and aluminium exports and talks between Beijing and Washington over broader trade concerns remain deadlocked.<h2>An industry under-price siege</h2>Since early 2023, China’s carmakers have been reportedly locked in an escalating cycle of discount wars.&nbsp;&nbsp;Leading the latest round is BYD, China’s biggest electric vehicle (EV) manufacturer, which introduced fresh subsidies on over 20 models last week, including government-backed trade-in offers.&nbsp;According to Reuters, the cost of BYD’s Seagull electric hatchback has been slashed to as low as 55,800 yuan (around $7,750), triggering a domino effect.&nbsp;&nbsp;Rivals like Geely and Chery have since followed suit with their own price cuts. &nbsp;The China Association of Automobile Manufacturers (CAAM) also issued a parallel appeal on Saturday, calling the discounting spiral a “panic-triggered” trend that hurts operational efficiency and long-term viability.&nbsp; &nbsp;“Apart from reducing the price of goods according to law, enterprises shall not dump goods at prices below cost,” CAAM, in a statement released via state media as reported by Reuters.&nbsp; &nbsp;The organisation advised automakers to uphold fair competition and avoid monopolistic pricing practices.<h2>Internal friction: BYD vs Great Wall</h2>The government’s plea reportedly follows a public spat between industry heavyweights. On Friday, a BYD executive reportedly dismissed concerns about industry instability as “alarmist”, in response to Great Wall Motor Chairman Wei Jianjun, who reportedly warned that cutthroat pricing was hitting not just carmakers, but also their suppliers.&nbsp;According to Reuters, Wei said the industry was becoming “unhealthy” under the pressure of constant undercutting, a rare admission from a top Chinese automotive executive.<h2>Tariff tensions in the backdrop</h2>This domestic unrest is unfolding just as the external environment becomes more hostile.&nbsp; &nbsp;Last month, the US slapped fresh tariffs on several Chinese goods, including a proposal to double duties on Chinese steel and aluminium.&nbsp;&nbsp;This could reportedly disrupt raw material flows crucial to EV manufacturing.&nbsp;US officials have also raised concerns over the global dominance of Chinese EVs and components, with President Trump promising to “defend American manufacturing”.&nbsp;&nbsp;Meanwhile, China is reportedly preparing retaliatory measures, although no formal announcements have been made. &nbsp;According to Bloomberg, US-China trade talks remain gridlocked, with officials struggling to find common ground on tariffs, technology transfer, and market access.&nbsp; &nbsp;The auto sector, which sits at the intersection of all three, is particularly exposed.<h2>What lies ahead?</h2>As both domestic and international pressure mounts, Beijing appears to be recalibrating its strategy. The MIIT’s intervention reportedly signals that authorities may soon push for industry-wide pricing norms, or even regulatory scrutiny of aggressive discounting practices.&nbsp;For automakers like BYD, Geely, Chery, and Great Wall, the challenge now is two-fold: navigating rising input costs amid tariff uncertainty, while avoiding a profit squeeze from endless price battles.

Business & Economy: With President Trump increasing pressure on Chinese imports through plans to double tariffs on steel and aluminium, China automotive sector is experiencing substantial upheaval characterized by intense price competition. 

As US President Donald Trump ramps up pressure on Chinese imports with plans to double tariffs on steel and aluminium, fresh turbulence is erupting in China’s auto industry. The world’s largest car market is facing intense price wars, a situation that Beijing reportedly now calls “unsustainable” and dangerous for long-term industrial health. According to Reuters, on Saturday, China’s Ministry of Industry and Information Technology (MIIT) issued a rare public warning, urging domestic automakers to stop “brutal price wars” that it says are damaging profitability and destabilising the sector, according to state news agency Xinhua. This comes at a critical moment. The global auto supply chain is already bracing for impact as the US under Trump signals a hard line on trade. Washington is preparing to double tariffs on Chinese steel and aluminium exports and talks between Beijing and Washington over broader trade concerns remain deadlocked. An industry under-price siege Since early 2023, China’s carmakers have been reportedly locked in an escalating cycle of discount wars. Leading the latest round is BYD, China’s biggest electric vehicle (EV) manufacturer, which introduced fresh subsidies on over 20 models last week, including government-backed trade-in offers. According to Reuters, the cost of BYD’s Seagull electric hatchback has been slashed to as low as 55,800 yuan (around $7,750), triggering a domino effect. Rivals like Geely and Chery have since followed suit with their own price cuts. The China Association of Automobile Manufacturers (CAAM) also issued a parallel appeal on Saturday, calling the discounting spiral a “panic-triggered” trend that hurts operational efficiency and long-term viability. “Apart from reducing the price of goods according to law, enterprises shall not dump goods at prices below cost,” CAAM, in a statement released via state media as reported by Reuters. The organisation advised automakers to uphold fair competition and avoid monopolistic pricing practices. Internal friction: BYD vs Great Wall The government’s plea reportedly follows a public spat between industry heavyweights. On Friday, a BYD executive reportedly dismissed concerns about industry instability as “alarmist”, in response to Great Wall Motor Chairman Wei Jianjun, who reportedly warned that cutthroat pricing was hitting not just carmakers, but also their suppliers. According to Reuters, Wei said the industry was becoming “unhealthy” under the pressure of constant undercutting, a rare admission from a top Chinese automotive executive. Tariff tensions in the backdrop This domestic unrest is unfolding just as the external environment becomes more hostile. Last month, the US slapped fresh tariffs on several Chinese goods, including a proposal to double duties on Chinese steel and aluminium. This could reportedly disrupt raw material flows crucial to EV manufacturing. US officials have also raised concerns over the global dominance of Chinese EVs and components, with President Trump promising to “defend American manufacturing”. Meanwhile, China is reportedly preparing retaliatory measures, although no formal announcements have been made. According to Bloomberg, US-China trade talks remain gridlocked, with officials struggling to find common ground on tariffs, technology transfer, and market access. The auto sector, which sits at the intersection of all three, is particularly exposed. What lies ahead? As both domestic and international pressure mounts, Beijing appears to be recalibrating its strategy. The MIIT’s intervention reportedly signals that authorities may soon push for industry-wide pricing norms, or even regulatory scrutiny of aggressive discounting practices. For automakers like BYD, Geely, Chery, and Great Wall, the challenge now is two-fold: navigating rising input costs amid tariff uncertainty, while avoiding a profit squeeze from endless price battles.

With President Trump increasing pressure on Chinese imports through plans to double tariffs on steel and aluminium, China's automotive sector is experiencing substantial upheaval characterized by intense price competition.

China warns auto giants to halt price wars as US tariff tension escalates: Details here

Pakistan is sending a delegation to the United States next week for high-stakes trade talks, President Donald Trump confirmed on Friday, as the South Asian nation tries to avert a looming tariff crisis that could jeopardise billions in export earnings, according to Reuters.&nbsp;&nbsp;The development comes amid Washington’s broader tariff campaign against countries running significant trade surpluses with the US and follows a sharp warning from Trump over recent military clashes between Pakistan and its neighbour India.<h2>Why Pakistan is under pressure</h2>As per Reuters, the US government last month announced sweeping tariff hikes on multiple trading partners. Among them, Pakistan now faces potential tariffs of up to 29 per cent on its exports to the US, owing to a trade surplus of approximately $3 billion.&nbsp;This makes the upcoming trade negotiations critical for Islamabad, which heavily relies on US market access to sustain key sectors such as textiles and surgical instruments.&nbsp;Trump, speaking at Joint Base Andrews, said that “Representatives from Pakistan are coming to the United States next week as they seek to make a deal on tariffs,” as quoted by Reuters.&nbsp;While he did not elaborate on the scope of discussions, his remarks signal that the talks will centre on tariff exemptions and possibly a broader bilateral trade reset.<h2>A fragile moment for regional diplomacy</h2>The talks also come against the backdrop of heightened military tensions in South Asia.&nbsp;Earlier in May, Pakistan and India engaged in four days of intense cross-border conflict involving missiles, drones, artillery, and fighter jets, worst confrontation in decades.&nbsp;Referring to this, Trump added, “I would have no interest in making a deal with Pakistan or India if they were to engage in war with each other,” as quoted by Reuters.&nbsp;The White House is closely monitoring the situation, given the nuclear capabilities of both nations and their strategic importance in regional stability.<h2>US-Pakistan trade dependency</h2>According to 2024 trade data from the Office of the United States Trade Representative (USTR), total two-way goods trade between the US and Pakistan stood at $12.2 billion, with Pakistan exporting $7.6 billion worth of goods to the US and importing $4.6 billion in return.&nbsp;Pakistan’s largest exports to the US include:<ul><li>Textiles and apparel: over $4.4 billion</li><li>Surgical and medical instruments: around $500 million</li><li>Leather goods and footwear</li><li>Sporting equipment</li></ul>The US is Pakistan’s single largest export destination, accounting for over 21 per cent of its total exports, according to data from Pakistan’s Ministry of Commerce.&nbsp;By contrast, US exports to Pakistan remain limited, concentrated mainly in machinery, pharmaceuticals, aircraft parts, and agricultural products.&nbsp;This asymmetry gives the US considerable leverage in trade negotiations but also highlights Pakistan’s economic vulnerability if tariff hikes are implemented.<h2>Will Pakistan offer concessions?</h2>As per Bloomberg, Pakistan may offer market access guarantees and investment incentives to US firms as part of the deal, particularly in sectors such as agriculture, green energy, and e-commerce.&nbsp;Pakistan’s Board of Investment is reportedly finalising a list of federal infrastructure contracts and public-private partnerships worth over $25 billion, which could be opened up to US bidders in exchange for tariff relief.&nbsp;The talks are expected to include Pakistan’s caretaker Commerce Minister and key officials from its Finance and Foreign Affairs Ministries, according to government sources quoted by The Express Tribune.<h2>US Parallel talks with India complicate the picture</h2>While Pakistan prepares for negotiations, India is also deepening trade engagement with Washington. Trump confirmed on Friday that the US is “very close [to] making a deal with India,” as quoted by Reuters.India’s Trade Minister Piyush Goyal was in Washington earlier this month to advance discussions, with an interim trade agreement expected by early July, as per Reuters.&nbsp;India currently faces 26 per cent tariffs on US-bound goods under the April tariff hike and is reportedly offering $50 billion in procurement opportunities to American firms in return for relief and improved access to the US tech and defence markets.&nbsp;This parallel track may influence how Washington negotiates with Islamabad, potentially demanding more structural reforms or commercial openness.<h2>What happens next?</h2>For Pakistan, the stakes are high. Without a deal, its key exports could become uncompetitive overnight, triggering factory closures and job losses in industries that employ millions of workers, particularly in cities like Karachi, Sialkot, and Faisalabad.&nbsp;The US also risks weakening a strategically important partner in South Asia, one it often relies on for counterterrorism, Afghan stability, and regional intelligence cooperation.&nbsp;Trade officials from both countries are expected to meet in Washington next week, with preparatory talks already underway, according to sources quoted by Dawn&nbsp; &nbsp;

Business & Economy: This comes amid Washington broader tariff campaign against countries with significant trade surpluses with the US and a warning from Trump over recent military clashes between Pakistan and its neighbor India. 

Pakistan is sending a delegation to the United States next week for high-stakes trade talks, President Donald Trump confirmed on Friday, as the South Asian nation tries to avert a looming tariff crisis that could jeopardise billions in export earnings, according to Reuters. The development comes amid Washington’s broader tariff campaign against countries running significant trade surpluses with the US and follows a sharp warning from Trump over recent military clashes between Pakistan and its neighbour India. Why Pakistan is under pressure As per Reuters, the US government last month announced sweeping tariff hikes on multiple trading partners. Among them, Pakistan now faces potential tariffs of up to 29 per cent on its exports to the US, owing to a trade surplus of approximately $3 billion. This makes the upcoming trade negotiations critical for Islamabad, which heavily relies on US market access to sustain key sectors such as textiles and surgical instruments. Trump, speaking at Joint Base Andrews, said that “Representatives from Pakistan are coming to the United States next week as they seek to make a deal on tariffs,” as quoted by Reuters. While he did not elaborate on the scope of discussions, his remarks signal that the talks will centre on tariff exemptions and possibly a broader bilateral trade reset. A fragile moment for regional diplomacy The talks also come against the backdrop of heightened military tensions in South Asia. Earlier in May, Pakistan and India engaged in four days of intense cross-border conflict involving missiles, drones, artillery, and fighter jets, worst confrontation in decades. Referring to this, Trump added, “I would have no interest in making a deal with Pakistan or India if they were to engage in war with each other,” as quoted by Reuters. The White House is closely monitoring the situation, given the nuclear capabilities of both nations and their strategic importance in regional stability. US-Pakistan trade dependency According to 2024 trade data from the Office of the United States Trade Representative (USTR), total two-way goods trade between the US and Pakistan stood at $12.2 billion, with Pakistan exporting $7.6 billion worth of goods to the US and importing $4.6 billion in return. Pakistan’s largest exports to the US include: Textiles and apparel: over $4.4 billion Surgical and medical instruments: around $500 million Leather goods and footwear Sporting equipment The US is Pakistan’s single largest export destination, accounting for over 21 per cent of its total exports, according to data from Pakistan’s Ministry of Commerce. By contrast, US exports to Pakistan remain limited, concentrated mainly in machinery, pharmaceuticals, aircraft parts, and agricultural products. This asymmetry gives the US considerable leverage in trade negotiations but also highlights Pakistan’s economic vulnerability if tariff hikes are implemented. Will Pakistan offer concessions? As per Bloomberg, Pakistan may offer market access guarantees and investment incentives to US firms as part of the deal, particularly in sectors such as agriculture, green energy, and e-commerce. Pakistan’s Board of Investment is reportedly finalising a list of federal infrastructure contracts and public-private partnerships worth over $25 billion, which could be opened up to US bidders in exchange for tariff relief. The talks are expected to include Pakistan’s caretaker Commerce Minister and key officials from its Finance and Foreign Affairs Ministries, according to government sources quoted by The Express Tribune. US Parallel talks with India complicate the picture While Pakistan prepares for negotiations, India is also deepening trade engagement with Washington. Trump confirmed on Friday that the US is “very close [to] making a deal with India,” as quoted by Reuters. India’s Trade Minister Piyush Goyal was in Washington earlier this month to advance discussions, with an interim trade agreement expected by early July, as per Reuters. India currently faces 26 per cent tariffs on US-bound goods under the April tariff hike and is reportedly offering $50 billion in procurement opportunities to American firms in return for relief and improved access to the US tech and defence markets. This parallel track may influence how Washington negotiates with Islamabad, potentially demanding more structural reforms or commercial openness. What happens next? For Pakistan, the stakes are high. Without a deal, its key exports could become uncompetitive overnight, triggering factory closures and job losses in industries that employ millions of workers, particularly in cities like Karachi, Sialkot, and Faisalabad. The US also risks weakening a strategically important partner in South Asia, one it often relies on for counterterrorism, Afghan stability, and regional intelligence cooperation. Trade officials from both countries are expected to meet in Washington next week, with preparatory talks already underway, according to sources quoted by Dawn

Pakistan is reportedly set to send a delegation to the US next week for high-stakes trade talks to avoid a potential tariff crisis that could threaten billions in export earnings.&nbsp;

Pakistan heads to Washington for trade talks: What’s at stake as US tariff threat looms?

For decades, Indian tech professionals have been the backbone of America’s digital revolution, filling critical roles in software development, data analysis, and IT services. But in 2025, the landscape is shifting dramatically.&nbsp;&nbsp;A wave of AI-powered automation and the “Make America Great Again” (MAGA) politics are threatening to unravel the American Dream for thousands of Indian techies.&nbsp;Across major tech firms including Google, Meta and Amazon, thousands of layoffs have rippled through the workforce, with H-1B visa holders disproportionately impacted. As AI tools like ChatGPT, Anthropic’s Claude, and Google's Gemini take over coding, debugging, and testing tasks, entry- and mid-level roles are rapidly disappearing.&nbsp;According to a report by Axios, white-collar workers, particularly in tech, marketing, and administration, are bearing the brunt of automation. Anthropic CEO Dario Amodei recently warned that AI could wipe out up to 50 per cent of entry-level white-collar jobs within the next five years.&nbsp;This technological disruption has collided with an increasingly hostile political narrative. Several conservative factions aligned with the MAGA movement have begun targeting foreign workers, especially Indian nationals on H-1B visas, as scapegoats for job losses. A Financial Express report highlights a growing sentiment among some Americans urging Indian tech workers to “leave the US” as layoffs increase.&nbsp;Caught in a perfect storm&nbsp;For many Indian professionals, the dual forces of automation and nationalism have created a precarious situation. Job security has evaporated almost overnight, while immigration status hangs by a thread. The US H-1B system ties a worker’s legal status to employment. If someone is laid off, they typically have just 60 days to secure another job or leave the United States.&nbsp;Social media platforms like LinkedIn and TeamBlind are flooded with posts from Indian tech workers seeking leads, legal advice, or emotional support. A viral LinkedIn post by Indian professional Movin Jain about why Indians in the US are being replaced by Indians in India sparked debate, reflecting a growing sense of displacement and frustration among highly skilled immigrants.&nbsp;The post mentions that the cost of tech talent in India is much lower; the salary for software engineers in India is around 20 per cent of what the company has to pay an employee in the US. India's strong pool of tech talent definitely makes it an attractive option for companies looking to cut expenses while maintaining output.&nbsp;On the other side, many American citizens, particularly in swing states like Pennsylvania and Ohio, view foreign workers as competitors in an increasingly tight job market. Trump-era policies and the MAGA movement have tapped into this resentment, pushing for stricter immigration controls and the elimination of perceived “job theft” by visa holders.&nbsp;AI raises the stakes&nbsp;While MAGA rhetoric is loud, AI is quietly reshaping the fundamental structure of white-collar employment. A recent news report from the Economic Times noted that managers and mid-tier engineers are now being replaced by AI systems that not only code but also manage workflows, analyse large datasets, and even conduct performance reviews.&nbsp;DeepMind CEO Demis Hassabis, speaking to students earlier this month, warned, “The world you’re entering will look nothing like the one you were trained for.” Former President Barack Obama also sounded the alarm, stating in an interview that AI could erase “millions of white-collar jobs within years”.&nbsp;Analysts predict that the first to go will be those in support and entry-level roles, the very positions Indian H-1B professionals often occupy early in their careers in the US. Although many of these workers are highly educated, their vulnerability lies in their visa dependence and the speed at which automation is rendering certain roles obsolete.&nbsp;What lies ahead&nbsp;Some Indian workers are considering returning home or looking to Canada, Germany, or Australia, where immigration policies may offer greater flexibility. Others are doubling down on upskilling, pivoting toward AI, cybersecurity, or product leadership roles that are harder to automate.&nbsp;However, the path ahead remains uncertain. Many are caught in legal limbo, struggling to find new jobs within a shrinking market while navigating complex visa rules. The US tech industry, once a beacon of opportunity for international talent, now appears less welcoming.&nbsp;Despite the bleak outlook, some industry voices are calling for reform. Tech CEOs and immigrant advocacy groups are urging lawmakers to decouple visas from employers, offer grace periods, and invest in re-skilling displaced workers. But with MAGA populism surging, meaningful change may be hard to come by.&nbsp;The convergence of AI disruption and MAGA-fuelled anti-immigration sentiment has put Indian tech professionals in the US at a unique disadvantage. As companies streamline their operations and politics grow more polarised, the very workers who helped build America’s digital future now find themselves questioning whether they have a future in the country at all.

As AI-driven automation reshapes the tech industry, Indian professionals on H-1B visas are increasingly caught in the crossfire—facing mass layoffs, uncertain immigration futures, and rising political hostility.

For decades, Indian tech professionals have been the backbone of America’s digital revolution, filling critical roles in software development, data analysis, and IT services. But in 2025, the landscape is shifting dramatically. A wave of AI-powered automation and the “Make America Great Again” (MAGA) politics are threatening to unravel the American Dream for thousands of Indian techies. Across major tech firms including Google, Meta and Amazon, thousands of layoffs have rippled through the workforce, with H-1B visa holders disproportionately impacted. As AI tools like ChatGPT, Anthropic’s Claude, and Google's Gemini take over coding, debugging, and testing tasks, entry- and mid-level roles are rapidly disappearing. According to a report by Axios, white-collar workers, particularly in tech, marketing, and administration, are bearing the brunt of automation. Anthropic CEO Dario Amodei recently warned that AI could wipe out up to 50 per cent of entry-level white-collar jobs within the next five years. This technological disruption has collided with an increasingly hostile political narrative. Several conservative factions aligned with the MAGA movement have begun targeting foreign workers, especially Indian nationals on H-1B visas, as scapegoats for job losses. A Financial Express report highlights a growing sentiment among some Americans urging Indian tech workers to “leave the US” as layoffs increase. Caught in a perfect storm For many Indian professionals, the dual forces of automation and nationalism have created a precarious situation. Job security has evaporated almost overnight, while immigration status hangs by a thread. The US H-1B system ties a worker’s legal status to employment. If someone is laid off, they typically have just 60 days to secure another job or leave the United States. Social media platforms like LinkedIn and TeamBlind are flooded with posts from Indian tech workers seeking leads, legal advice, or emotional support. A viral LinkedIn post by Indian professional Movin Jain about why Indians in the US are being replaced by Indians in India sparked debate, reflecting a growing sense of displacement and frustration among highly skilled immigrants. The post mentions that the cost of tech talent in India is much lower; the salary for software engineers in India is around 20 per cent of what the company has to pay an employee in the US. India's strong pool of tech talent definitely makes it an attractive option for companies looking to cut expenses while maintaining output. On the other side, many American citizens, particularly in swing states like Pennsylvania and Ohio, view foreign workers as competitors in an increasingly tight job market. Trump-era policies and the MAGA movement have tapped into this resentment, pushing for stricter immigration controls and the elimination of perceived “job theft” by visa holders. AI raises the stakes While MAGA rhetoric is loud, AI is quietly reshaping the fundamental structure of white-collar employment. A recent news report from the Economic Times noted that managers and mid-tier engineers are now being replaced by AI systems that not only code but also manage workflows, analyse large datasets, and even conduct performance reviews. DeepMind CEO Demis Hassabis, speaking to students earlier this month, warned, “The world you’re entering will look nothing like the one you were trained for.” Former President Barack Obama also sounded the alarm, stating in an interview that AI could erase “millions of white-collar jobs within years”. Analysts predict that the first to go will be those in support and entry-level roles, the very positions Indian H-1B professionals often occupy early in their careers in the US. Although many of these workers are highly educated, their vulnerability lies in their visa dependence and the speed at which automation is rendering certain roles obsolete. What lies ahead Some Indian workers are considering returning home or looking to Canada, Germany, or Australia, where immigration policies may offer greater flexibility. Others are doubling down on upskilling, pivoting toward AI, cybersecurity, or product leadership roles that are harder to automate. However, the path ahead remains uncertain. Many are caught in legal limbo, struggling to find new jobs within a shrinking market while navigating complex visa rules. The US tech industry, once a beacon of opportunity for international talent, now appears less welcoming. Despite the bleak outlook, some industry voices are calling for reform. Tech CEOs and immigrant advocacy groups are urging lawmakers to decouple visas from employers, offer grace periods, and invest in re-skilling displaced workers. But with MAGA populism surging, meaningful change may be hard to come by. The convergence of AI disruption and MAGA-fuelled anti-immigration sentiment has put Indian tech professionals in the US at a unique disadvantage. As companies streamline their operations and politics grow more polarised, the very workers who helped build America’s digital future now find themselves questioning whether they have a future in the country at all.

As AI-driven automation reshapes the tech industry, Indian professionals on H-1B visas are increasingly caught in the crossfire—facing mass layoffs, uncertain immigration futures, and rising political hostility.

Indian techies coding the American dream: Until AI and MAGA hit delete

In a move aimed at curbing rising kitchen expenses and stabilising the edible oil market, the Indian government has halved the basic import duty on key crude edible oils.&nbsp;As reported by Reuters, the decision, announced on May 30, is expected to bring some relief to households battling food inflation while also giving a much-needed boost to India’s vegetable oil refining sector.&nbsp;Here’s a detailed look at why the move was made, what’s fuelling the price spike globally, and how this may impact your monthly grocery budget.<h2>Why did the government cut the duty?</h2>The Centre has reduced the basic customs duty on crude palm oil, crude soyoil, and crude sunflower oil from 20 per cent to 10 per cent, according to a government notification cited by Reuters.&nbsp;&nbsp;Once you factor in the Agriculture Infrastructure and Development Cess and the Social Welfare Surcharge, the effective import duty now stands at 16.5 per cent, down from 27.5 per cent, as per PTI, quoting Food Secretary Sanjeev Chopra.&nbsp;This move serves a dual purpose: to soften retail edible oil prices for inflation-hit consumers and to encourage the import of crude oils over refined ones, hereby strengthening domestic refining operations by giving them a cost advantage.<h2>Edible oil inflation is real</h2>The timing of the duty cut is directly linked to rising edible oil prices. According to April 2025 data from the Ministry of Consumer Affairs, edible oil inflation rose by 17.4 per cent year-on-year, despite a healthy domestic mustard harvest.&nbsp;Mustard oil prices have climbed by 25 per cent, averaging over ₹170 per litre. Palm oil, widely used in Indian households and the food industry, has surged by 34 per cent to ₹134 per litre. Sunflower oil prices are up 30 per cent, while soyoil which is usually more stable has still seen an 18 per cent increase, now retailing at around ₹147 per litre.&nbsp;These sharp hikes have made cooking oils a significant burden on household budgets, and the problem isn’t just homegrown.<h2>What’s driving the global price surge?</h2>A combination of international supply shocks and geopolitical disruptions has pushed edible oil prices higher worldwide.&nbsp;Crop damage in Latin America, particularly in Brazil and Argentina has hit soyabean and sunflower output, as reported by Bloomberg. At the same time, export restrictions from Indonesia and Malaysia, the world’s top palm oil producers, have tightened global availability.&nbsp;Geopolitical conflicts are also adding pressure. The ongoing war in Ukraine and sanctions on Russia, both major exporters of sunflower oil, have disrupted trade routes and caused uncertainty in global supply chains, according to Reuters.&nbsp;Given that India reportedly imports more than 70 per cent of its edible oil requirements, these global disruptions quickly translate into higher domestic prices. India’s primary suppliers include Indonesia, Malaysia, and Thailand for palm oil, and Argentina, Brazil, Russia, and Ukraine for sunflower and soyoil.<h2>A boost for domestic refiners</h2>The duty cut has been welcomed by India’s edible oil industry, particularly by refiners who process imported crude oil.&nbsp;“This is a win-win situation for vegetable oil refiners and consumers,” said B.V. Mehta, Executive Director of the Solvent Extractors’ Association of India (SEA), speaking to PTI.&nbsp;With the duty gap between crude and refined oil widening to 19.25 per cent, it is now more cost-effective to import crude oils and refine them locally. Industry experts believe this will improve capacity utilisation at domestic units and eventually help bring down retail prices.&nbsp;The Indian Vegetable Oil Producers’ Association (IVPA) also expressed support. Its president, Sudhakar Desai, told PTI, “We thank the government for accepting our recommendation to increase the duty differential. It will help revive the refining sector.”<h2>The policy see-saw</h2>This cut reverses an earlier policy shift made in September 2024, when the government increased the basic customs duty on crude edible oils from zero to 20 per cent, raising the total effective duty to 27.5 per cent. The aim then was to protect Indian oilseed farmers and control the influx of cheaper imported oils.&nbsp;But with food inflation mounting and global edible oil prices rising sharply, the government has recalibrated its approach which is likely with an eye on both consumer sentiment and upcoming elections. For many Indian households, cooking oil is a non-negotiable staple, and unchecked prices risk becoming a political liability.<h2>What happens next?</h2>The reduction in import duty is expected to ease edible oil prices in the short term, especially for palm, soy, and sunflower oils. It could also increase demand in the retail market and give a cost advantage to domestic refiners over fully processed imports.&nbsp;However, the long-term impact will depend heavily on global dynamics. If supply disruptions persist due to geopolitical unrest or climate-related crop failures and the prices may remain volatile despite the duty cut.&nbsp;For now, the Centre has sent a clear message: it is willing to intervene when international headwinds threaten domestic stability. Whether this move will bring sustained relief remains to be seen, but it could offer some cushion to consumers, and a lifeline to India’s refining industry.

Business & Economy: This move aims to soften retail edible oil prices for inflation-hit consumers and encourage crude oil imports over refined ones, strengthening domestic refining operations.

In a move aimed at curbing rising kitchen expenses and stabilising the edible oil market, the Indian government has halved the basic import duty on key crude edible oils. As reported by Reuters, the decision, announced on May 30, is expected to bring some relief to households battling food inflation while also giving a much-needed boost to India’s vegetable oil refining sector. Here’s a detailed look at why the move was made, what’s fuelling the price spike globally, and how this may impact your monthly grocery budget. Why did the government cut the duty? The Centre has reduced the basic customs duty on crude palm oil, crude soyoil, and crude sunflower oil from 20 per cent to 10 per cent, according to a government notification cited by Reuters. Once you factor in the Agriculture Infrastructure and Development Cess and the Social Welfare Surcharge, the effective import duty now stands at 16.5 per cent, down from 27.5 per cent, as per PTI, quoting Food Secretary Sanjeev Chopra. This move serves a dual purpose: to soften retail edible oil prices for inflation-hit consumers and to encourage the import of crude oils over refined ones, hereby strengthening domestic refining operations by giving them a cost advantage. Edible oil inflation is real The timing of the duty cut is directly linked to rising edible oil prices. According to April 2025 data from the Ministry of Consumer Affairs, edible oil inflation rose by 17.4 per cent year-on-year, despite a healthy domestic mustard harvest. Mustard oil prices have climbed by 25 per cent, averaging over ₹170 per litre. Palm oil, widely used in Indian households and the food industry, has surged by 34 per cent to ₹134 per litre. Sunflower oil prices are up 30 per cent, while soyoil which is usually more stable has still seen an 18 per cent increase, now retailing at around ₹147 per litre. These sharp hikes have made cooking oils a significant burden on household budgets, and the problem isn’t just homegrown. What’s driving the global price surge? A combination of international supply shocks and geopolitical disruptions has pushed edible oil prices higher worldwide. Crop damage in Latin America, particularly in Brazil and Argentina has hit soyabean and sunflower output, as reported by Bloomberg. At the same time, export restrictions from Indonesia and Malaysia, the world’s top palm oil producers, have tightened global availability. Geopolitical conflicts are also adding pressure. The ongoing war in Ukraine and sanctions on Russia, both major exporters of sunflower oil, have disrupted trade routes and caused uncertainty in global supply chains, according to Reuters. Given that India reportedly imports more than 70 per cent of its edible oil requirements, these global disruptions quickly translate into higher domestic prices. India’s primary suppliers include Indonesia, Malaysia, and Thailand for palm oil, and Argentina, Brazil, Russia, and Ukraine for sunflower and soyoil. A boost for domestic refiners The duty cut has been welcomed by India’s edible oil industry, particularly by refiners who process imported crude oil. “This is a win-win situation for vegetable oil refiners and consumers,” said B.V. Mehta, Executive Director of the Solvent Extractors’ Association of India (SEA), speaking to PTI. With the duty gap between crude and refined oil widening to 19.25 per cent, it is now more cost-effective to import crude oils and refine them locally. Industry experts believe this will improve capacity utilisation at domestic units and eventually help bring down retail prices. The Indian Vegetable Oil Producers’ Association (IVPA) also expressed support. Its president, Sudhakar Desai, told PTI, “We thank the government for accepting our recommendation to increase the duty differential. It will help revive the refining sector.” The policy see-saw This cut reverses an earlier policy shift made in September 2024, when the government increased the basic customs duty on crude edible oils from zero to 20 per cent, raising the total effective duty to 27.5 per cent. The aim then was to protect Indian oilseed farmers and control the influx of cheaper imported oils. But with food inflation mounting and global edible oil prices rising sharply, the government has recalibrated its approach which is likely with an eye on both consumer sentiment and upcoming elections. For many Indian households, cooking oil is a non-negotiable staple, and unchecked prices risk becoming a political liability. What happens next? The reduction in import duty is expected to ease edible oil prices in the short term, especially for palm, soy, and sunflower oils. It could also increase demand in the retail market and give a cost advantage to domestic refiners over fully processed imports. However, the long-term impact will depend heavily on global dynamics. If supply disruptions persist due to geopolitical unrest or climate-related crop failures and the prices may remain volatile despite the duty cut. For now, the Centre has sent a clear message: it is willing to intervene when international headwinds threaten domestic stability. Whether this move will bring sustained relief remains to be seen, but it could offer some cushion to consumers, and a lifeline to India’s refining industry.

India reduced customs duty on edible crude palm oil, soyoil, and sunflower oil from 20% to 10%.&nbsp;

India cuts crude edible oil import duty: What it means for consumers and the industry?

China’s manufacturing activity contracted for a second consecutive month in May, but at a slower pace than April, thanks in part to a temporary easing of trade tensions with the United States.&nbsp;According to official data released on May 31 by the National Bureau of Statistics, the manufacturing purchasing managers’ index (PMI) rose to 49.5 in May from 49.0 in April, aligning with economists’ forecasts.&nbsp;PMI is measured on a scale from 0 to 100, where 50 marks the cutoff between expansion and contraction. A reading above 50 indicates expansion, and below 50, a contraction.&nbsp;The improvement follows a 90-day trade truce reached earlier this month between Beijing and Washington, during which both sides agreed to slash previously imposed tariffs.&nbsp;The US reduced its average tariffs from 145 per cent to around 30 per cent, while China cut its own duties on American goods from 125 per cent to 10 per cent. The temporary rollback helped boost trade flows and revive some export activity.&nbsp;However, the recovery remains fragile. The new export orders sub-index climbed to 47.5 from 44.7 in April, and the new orders sub-index rose to 49.8 from 49.2—still below the key 50-point level. This signals continued contraction in overall demand despite some stabilisation in external trade.&nbsp;The non-manufacturing PMI, which includes services and construction, slipped slightly to 50.3 in May from 50.4 the previous month, remaining just above the expansion threshold. The composite index, combining both manufacturing and services, edged up to 50.4.&nbsp;Tariff pause brings temporary relief&nbsp;The recent tariff pause provided a modest lift to factory output, with some Chinese exporters reporting resumed orders from US partners. Still, the broader outlook remains clouded by uncertainty.&nbsp;On May 30, US President Donald Trump accused China of violating the newly reached trade agreement, declaring in a Truth Social post that he would no longer be “Mr Nice Guy”. He followed up by announcing a doubling of steel and aluminium tariffs to 50 per cent, a move that has once again rattled global trade sentiment.&nbsp;Tensions were further inflamed as the US began revoking visas for Chinese students, prompting a formal protest from Beijing.&nbsp;Despite the recent improvement in PMI data, economists remain cautious. According to a Bloomberg survey conducted in late May, China’s GDP is projected to grow 4.5 per cent in 2025, below the government’s 5 per cent target. While exports are expected to grow 1.1 per cent—a modest upgrade from April’s forecasted contraction—ongoing deflationary pressures and weak domestic consumption continue to weigh heavily on the economy.&nbsp;To counter the slowdown, China’s central bank recently introduced new stimulus measures, including interest rate cuts and a significant liquidity injection. Analysts believe that while the tariff reprieve may ease the need for more aggressive action, Beijing may still need to deploy further support if trade talks stall or domestic momentum weakens.&nbsp;For now, the slight rebound in manufacturing offers a tentative sign of stability, but with trade tensions escalating once again, the sustainability of that recovery remains in question.

China's manufacturing PMI rose to 49.5 in May from 49.0 in April, aligning with economists’ forecasts. The improvement follows a 90-day trade truce reached earlier this month between Beijing and Washington.

China’s manufacturing activity contracted for a second consecutive month in May, but at a slower pace than April, thanks in part to a temporary easing of trade tensions with the United States. According to official data released on May 31 by the National Bureau of Statistics, the manufacturing purchasing managers’ index (PMI) rose to 49.5 in May from 49.0 in April, aligning with economists’ forecasts. PMI is measured on a scale from 0 to 100, where 50 marks the cutoff between expansion and contraction. A reading above 50 indicates expansion, and below 50, a contraction. The improvement follows a 90-day trade truce reached earlier this month between Beijing and Washington, during which both sides agreed to slash previously imposed tariffs. The US reduced its average tariffs from 145 per cent to around 30 per cent, while China cut its own duties on American goods from 125 per cent to 10 per cent. The temporary rollback helped boost trade flows and revive some export activity. However, the recovery remains fragile. The new export orders sub-index climbed to 47.5 from 44.7 in April, and the new orders sub-index rose to 49.8 from 49.2—still below the key 50-point level. This signals continued contraction in overall demand despite some stabilisation in external trade. The non-manufacturing PMI, which includes services and construction, slipped slightly to 50.3 in May from 50.4 the previous month, remaining just above the expansion threshold. The composite index, combining both manufacturing and services, edged up to 50.4. Tariff pause brings temporary relief The recent tariff pause provided a modest lift to factory output, with some Chinese exporters reporting resumed orders from US partners. Still, the broader outlook remains clouded by uncertainty. On May 30, US President Donald Trump accused China of violating the newly reached trade agreement, declaring in a Truth Social post that he would no longer be “Mr Nice Guy”. He followed up by announcing a doubling of steel and aluminium tariffs to 50 per cent, a move that has once again rattled global trade sentiment. Tensions were further inflamed as the US began revoking visas for Chinese students, prompting a formal protest from Beijing. Despite the recent improvement in PMI data, economists remain cautious. According to a Bloomberg survey conducted in late May, China’s GDP is projected to grow 4.5 per cent in 2025, below the government’s 5 per cent target. While exports are expected to grow 1.1 per cent—a modest upgrade from April’s forecasted contraction—ongoing deflationary pressures and weak domestic consumption continue to weigh heavily on the economy. To counter the slowdown, China’s central bank recently introduced new stimulus measures, including interest rate cuts and a significant liquidity injection. Analysts believe that while the tariff reprieve may ease the need for more aggressive action, Beijing may still need to deploy further support if trade talks stall or domestic momentum weakens. For now, the slight rebound in manufacturing offers a tentative sign of stability, but with trade tensions escalating once again, the sustainability of that recovery remains in question.

China's manufacturing PMI rose to 49.5 in May from 49.0 in April, aligning with economists’ forecasts. The improvement follows a 90-day trade truce reached earlier this month between Beijing and Washington.

China’s factory slump eases in May after tariff truce with US

US consumer spending barely rose in April as households tightened their wallets and diverted funds into savings. This reportedly reflects growing unease over the country’s economic trajectory amid erratic tariff policies and legal roadblocks to US President Donald Trump’s sweeping trade duties. According to Reuters, citing data from the US Commerce Department, consumer spending, the backbone of the US economy climbed just 0.2 per cent in April, a steep slowdown from March’s 0.7 per cent gain.&nbsp;&nbsp;The deceleration suggests that Americans, rattled by recent tariff shocks and broader uncertainty, are preparing for leaner times.<h2>Spending weakens as tariff anxiety rises</h2>While services spending held firm—buoyed by housing, utilities, healthcare, and hospitality—goods spending softened considerably.&nbsp; Shoppers cut back on vehicles, apparel, and recreational goods, which had seen a pre-emptive boost in March due to stockpiling before new tariffs, Reuters reported. President Trump’s new import duties, largely targeting Chinese goods, had been slashed to 30 per cent from 145 per cent through mid-August, following a ruling by a US trade court, as per Reuters.&nbsp;&nbsp;The court found that the president had overstepped his authority. However, a federal appeals court temporarily reinstated most of the duties the next day, plunging the economic outlook into further ambiguity.&nbsp;“The Liberation Day tariff shock clearly spooked consumers,” said Scott Anderson, Chief US Economist at BMO Capital Markets, in a statement to Reuters. “They’re now saving for a rainy day.”<h2>Savings jump to one-year high</h2>That caution was reflected in the personal saving rate, which jumped to 4.9 per cent in April, the highest since March 2024, from 4.3 per cent in March, according to the US Commerce Department’s Bureau of Economic Analysis (BEA), as cited by Reuters.&nbsp;Adding to the economic unease, the US economy shrank at an annualised rate of 0.2 per cent in Q1 2025, the first contraction in three years. This decline was mainly attributed to a surge in imports before tariffs kicked in, according to Reuters, referencing official government data.&nbsp;In a separate report, the US Census Bureau stated that the goods trade deficit shrank by 46 per cent to $87.6 billion in April. This was due to a sharp decline in imports, which fell by $68.4 billion to $276.1 billion, while goods exports rose by $6.3 billion to $188.5 billion.<h2>Inflation eases, but Fed remains on edge</h2>Inflation remained subdued in April. The PCE Price Index, the Federal Reserve’s preferred inflation measure, rose 0.1 per cent in April after remaining flat in March, as per the BEA data cited by Reuters.&nbsp;&nbsp;On a yearly basis, overall PCE inflation increased 2.1 per cent, while core PCE, which excludes food and energy, climbed 2.5 per cent, marking the smallest increase since March 2021, as per Reuters.&nbsp;&nbsp;Despite these modest gains, the Federal Reserve remains cautious. According to minutes from its May 6–7 meeting, reviewed by Reuters, Fed officials highlighted concerns about rising short-term inflation expectations.&nbsp;&nbsp;Some policymakers had reportedly warned that these expectations could influence businesses to raise prices and push long-term inflation even higher.<h2>Trade deficit shrinks but sentiment deteriorates</h2>According to the US Census Bureau, the collapse in imports and slight export gains contributed to the shrinking trade deficit.&nbsp; However, economists interviewed by Reuters cautioned that the downturn in imports may be temporary and tied to the unpredictable implementation of trade tariffs.&nbsp;Markets reacted nervously. As per Reuters, US stocks opened lower, Treasury yields rose slightly, and the dollar strengthened against major global currencies on Thursday.<h2>Outlook clouded by policy unpredictability</h2>With Trump’s tariffs caught in a legal tug-of-war and inflation trending downward but unstable, the economic recovery remains fragile.&nbsp;&nbsp;Economists quoted by Reuters suggested that while softer inflation offers some relief, uncertainty surrounding tariff rulings is expected to weigh heavily on both consumer confidence and business investment in the months ahead.

Business & Economy: The Liberation Day tariff shock spooked consumers, who are now saving for a rainy day. 

US consumer spending barely rose in April as households tightened their wallets and diverted funds into savings. This reportedly reflects growing unease over the country’s economic trajectory amid erratic tariff policies and legal roadblocks to US President Donald Trump’s sweeping trade duties. According to Reuters, citing data from the US Commerce Department, consumer spending, the backbone of the US economy climbed just 0.2 per cent in April, a steep slowdown from March’s 0.7 per cent gain. The deceleration suggests that Americans, rattled by recent tariff shocks and broader uncertainty, are preparing for leaner times. Spending weakens as tariff anxiety rises While services spending held firm—buoyed by housing, utilities, healthcare, and hospitality—goods spending softened considerably. Shoppers cut back on vehicles, apparel, and recreational goods, which had seen a pre-emptive boost in March due to stockpiling before new tariffs, Reuters reported. President Trump’s new import duties, largely targeting Chinese goods, had been slashed to 30 per cent from 145 per cent through mid-August, following a ruling by a US trade court, as per Reuters. The court found that the president had overstepped his authority. However, a federal appeals court temporarily reinstated most of the duties the next day, plunging the economic outlook into further ambiguity. “The Liberation Day tariff shock clearly spooked consumers,” said Scott Anderson, Chief US Economist at BMO Capital Markets, in a statement to Reuters. “They’re now saving for a rainy day.” Savings jump to one-year high That caution was reflected in the personal saving rate, which jumped to 4.9 per cent in April, the highest since March 2024, from 4.3 per cent in March, according to the US Commerce Department’s Bureau of Economic Analysis (BEA), as cited by Reuters. Adding to the economic unease, the US economy shrank at an annualised rate of 0.2 per cent in Q1 2025, the first contraction in three years. This decline was mainly attributed to a surge in imports before tariffs kicked in, according to Reuters, referencing official government data. In a separate report, the US Census Bureau stated that the goods trade deficit shrank by 46 per cent to $87.6 billion in April. This was due to a sharp decline in imports, which fell by $68.4 billion to $276.1 billion, while goods exports rose by $6.3 billion to $188.5 billion. Inflation eases, but Fed remains on edge Inflation remained subdued in April. The PCE Price Index, the Federal Reserve’s preferred inflation measure, rose 0.1 per cent in April after remaining flat in March, as per the BEA data cited by Reuters. On a yearly basis, overall PCE inflation increased 2.1 per cent, while core PCE, which excludes food and energy, climbed 2.5 per cent, marking the smallest increase since March 2021, as per Reuters. Despite these modest gains, the Federal Reserve remains cautious. According to minutes from its May 6–7 meeting, reviewed by Reuters, Fed officials highlighted concerns about rising short-term inflation expectations. Some policymakers had reportedly warned that these expectations could influence businesses to raise prices and push long-term inflation even higher. Trade deficit shrinks but sentiment deteriorates According to the US Census Bureau, the collapse in imports and slight export gains contributed to the shrinking trade deficit. However, economists interviewed by Reuters cautioned that the downturn in imports may be temporary and tied to the unpredictable implementation of trade tariffs. Markets reacted nervously. As per Reuters, US stocks opened lower, Treasury yields rose slightly, and the dollar strengthened against major global currencies on Thursday. Outlook clouded by policy unpredictability With Trump’s tariffs caught in a legal tug-of-war and inflation trending downward but unstable, the economic recovery remains fragile. Economists quoted by Reuters suggested that while softer inflation offers some relief, uncertainty surrounding tariff rulings is expected to weigh heavily on both consumer confidence and business investment in the months ahead.

US consumer spending barely increased in April, as households strained their finances and shifted funds into savings.&nbsp;

US consumer spending falters in April as inflation cools and savings rise

&nbsp;US President Donald Trump announced on May 30 that he would increase tariffs on steel and aluminium imports, raising them from 25 per cent to 50 per cent. The new tariff rates, which will go into effect on June 4, are part of Trump’s ongoing effort to bolster American manufacturing and secure the US steel industry.Speaking at the US Steel Mon Valley Works–Irvin plant in West Mifflin, Pennsylvania, Trump emphasised that the move would “further secure” the American steel industry. “At 25 per cent, they can sort of get over that fence. At 50 per cent they can no longer get over the fence,” he said, addressing the steelworkers at the rally.He added that the steel tariffs would protect jobs and prevent foreign steel producers from undercutting American manufacturers.The new tariff also offers a backstop for Trump’s promise that the US Steel-Nippon deal would benefit steelworkers in the critical battleground state of Pennsylvania.The steep tariff hikes come amid rising steel prices in the US, which have surged 16 per cent since Trump came to power in January 2025. As of March, steel in the US was priced at $984 per metric tonne, far above the prices in Europe ($690) and China ($392), according to the US Commerce Department.According to US import data for 2024, Canada is the largest supplier of steel to the US, with Brazil and Mexico following closely behind. Around 77 per cent of US steel imports in 2023-2024 came from the top 10 nations that export steel to the US. India ranks 14th among the list of top steel exporters to the US, according to the US Department of Commerce.While the tariff increases are designed to protect US steelworkers, they are expected to have significant implications for downstream industries, including construction and automotive manufacturing.Experts warn that the price hikes could lead to increased costs for building materials and could impact the price of housing and car production.&nbsp;Trump's shift on Nippon Steel deal&nbsp;In addition to the tariff announcement, Trump used the event to promote his administration’s backing of US Steel and Japan’s Nippon Steel deal.Earlier this year, Trump opposed Nippon’s bid to fully acquire US Steel on national security grounds. However, he reversed course in May, endorsing a revised “partnership” between the two companies.Trump described the deal as a “blockbuster agreement” that would ensure US Steel remains under American control while allowing for significant investment from Nippon. The Japanese steelmaker has pledged to invest $14 billion in US Steel’s facilities, including plants in Pennsylvania, Indiana, Arkansas, Alabama, and Minnesota.Nippon will also maintain US Steel’s blast furnaces at full capacity for at least a decade and guarantee no layoffs or outsourcing of jobs.Despite the promises, the deal has faced criticism from labour unions, particularly the United Steelworkers (USW). The union expressed concerns over the potential impact on national security and the future of American jobs.“We are most concerned with the impact that this merger of US Steel into a foreign competitor will have on national security, our members, and the communities where we live and work,” said USW President David McCall in a statement.At the rally, Trump reassured workers that the deal would maintain American control over the iconic steelmaker, stressing that US Steel’s headquarters would remain in Pittsburgh.He also highlighted the economic benefits of the deal, claiming it would create 70,000 jobs and inject $14 billion into the US economy. “You’re going to stay at an American company, you know that, right?” Trump said to the crowd.The deal is still under review by the Committee on Foreign Investment in the United States (CFIUS), which is tasked with ensuring that foreign investments do not pose a threat to national security.&nbsp;Mixed reactions&nbsp;While the US Steelworkers union has remained cautious about the deal, some individual workers have expressed optimism about the potential for modernisation and increased investment.USW, which represents thousands of hourly workers at US Steel facilities, said after Trump's speech that it had not participated in discussions involving Nippon Steel and the Trump administration, "nor were we consulted."“We cannot speculate about the meaning of the ‘planned partnership’,” said USW International President David McCall in a statement.“Whatever the deal structure, our primary concern remains with the impact that this merger of US Steel into a foreign competitor will have on national security, our members and the communities where we live and work,” McCall said. “The devil is always in the details,” he added.In contrast, Pennsylvania state lawmakers and federal officials have been more supportive of the deal, citing the investment commitments from Nippon Steel and the assurance that the US government will maintain significant control over the company.Highlighting the importance of national security in the deal’s structure, US Trade Representative Jamieson Greer told CNBC, “The underlying principle is that the United States should have control over key critical sectors.”Trump’s announcement marks a significant shift in his stance toward foreign investments in US industries, particularly in the steel sector. During his first term, he made clear his opposition to foreign ownership of US steelmakers. However, his new approach appears to be driven by a desire to protect jobs and ensure the long-term health of the American steel industry.The fate of US Steel remains a crucial issue for Trump, particularly as the company’s operations are tied to key battleground states like Pennsylvania. The deal with Nippon Steel could be a key factor in shaping voters' perceptions of Trump’s ability to protect American manufacturing.With the new tariffs set to take effect next week, the steel industry, and the broader economy, will likely feel the impact of Trump’s trade policies in the months to come. While the tariffs are aimed at securing the steel industry, the concerns regarding their long-term effects on prices, jobs, and global trade remain.

The new tariff rates, which will go into effect on June 4, are part of Trump’s ongoing effort to bolster American manufacturing and secure the US steel industry.

US President Donald Trump announced on May 30 that he would increase tariffs on steel and aluminium imports, raising them from 25 per cent to 50 per cent. The new tariff rates, which will go into effect on June 4, are part of Trump’s ongoing effort to bolster American manufacturing and secure the US steel industry. Speaking at the US Steel Mon Valley Works–Irvin plant in West Mifflin, Pennsylvania, Trump emphasised that the move would “further secure” the American steel industry. “At 25 per cent, they can sort of get over that fence. At 50 per cent they can no longer get over the fence,” he said, addressing the steelworkers at the rally. He added that the steel tariffs would protect jobs and prevent foreign steel producers from undercutting American manufacturers. The new tariff also offers a backstop for Trump’s promise that the US Steel-Nippon deal would benefit steelworkers in the critical battleground state of Pennsylvania. The steep tariff hikes come amid rising steel prices in the US, which have surged 16 per cent since Trump came to power in January 2025. As of March, steel in the US was priced at $984 per metric tonne, far above the prices in Europe ($690) and China ($392), according to the US Commerce Department. According to US import data for 2024, Canada is the largest supplier of steel to the US, with Brazil and Mexico following closely behind. Around 77 per cent of US steel imports in 2023-2024 came from the top 10 nations that export steel to the US. India ranks 14th among the list of top steel exporters to the US, according to the US Department of Commerce. While the tariff increases are designed to protect US steelworkers, they are expected to have significant implications for downstream industries, including construction and automotive manufacturing. Experts warn that the price hikes could lead to increased costs for building materials and could impact the price of housing and car production. Trump's shift on Nippon Steel deal In addition to the tariff announcement, Trump used the event to promote his administration’s backing of US Steel and Japan’s Nippon Steel deal. Earlier this year, Trump opposed Nippon’s bid to fully acquire US Steel on national security grounds. However, he reversed course in May, endorsing a revised “partnership” between the two companies. Trump described the deal as a “blockbuster agreement” that would ensure US Steel remains under American control while allowing for significant investment from Nippon. The Japanese steelmaker has pledged to invest $14 billion in US Steel’s facilities, including plants in Pennsylvania, Indiana, Arkansas, Alabama, and Minnesota. Nippon will also maintain US Steel’s blast furnaces at full capacity for at least a decade and guarantee no layoffs or outsourcing of jobs. Despite the promises, the deal has faced criticism from labour unions, particularly the United Steelworkers (USW). The union expressed concerns over the potential impact on national security and the future of American jobs. “We are most concerned with the impact that this merger of US Steel into a foreign competitor will have on national security, our members, and the communities where we live and work,” said USW President David McCall in a statement. At the rally, Trump reassured workers that the deal would maintain American control over the iconic steelmaker, stressing that US Steel’s headquarters would remain in Pittsburgh. He also highlighted the economic benefits of the deal, claiming it would create 70,000 jobs and inject $14 billion into the US economy. “You’re going to stay at an American company, you know that, right?” Trump said to the crowd. The deal is still under review by the Committee on Foreign Investment in the United States (CFIUS), which is tasked with ensuring that foreign investments do not pose a threat to national security. Mixed reactions While the US Steelworkers union has remained cautious about the deal, some individual workers have expressed optimism about the potential for modernisation and increased investment. USW, which represents thousands of hourly workers at US Steel facilities, said after Trump's speech that it had not participated in discussions involving Nippon Steel and the Trump administration, "nor were we consulted." “We cannot speculate about the meaning of the ‘planned partnership’,” said USW International President David McCall in a statement. “Whatever the deal structure, our primary concern remains with the impact that this merger of US Steel into a foreign competitor will have on national security, our members and the communities where we live and work,” McCall said. “The devil is always in the details,” he added. In contrast, Pennsylvania state lawmakers and federal officials have been more supportive of the deal, citing the investment commitments from Nippon Steel and the assurance that the US government will maintain significant control over the company. Highlighting the importance of national security in the deal’s structure, US Trade Representative Jamieson Greer told CNBC, “The underlying principle is that the United States should have control over key critical sectors.” Trump’s announcement marks a significant shift in his stance toward foreign investments in US industries, particularly in the steel sector. During his first term, he made clear his opposition to foreign ownership of US steelmakers. However, his new approach appears to be driven by a desire to protect jobs and ensure the long-term health of the American steel industry. The fate of US Steel remains a crucial issue for Trump, particularly as the company’s operations are tied to key battleground states like Pennsylvania. The deal with Nippon Steel could be a key factor in shaping voters' perceptions of Trump’s ability to protect American manufacturing. With the new tariffs set to take effect next week, the steel industry, and the broader economy, will likely feel the impact of Trump’s trade policies in the months to come. While the tariffs are aimed at securing the steel industry, the concerns regarding their long-term effects on prices, jobs, and global trade remain.

The new tariff rates, which will go into effect on June 4, are part of Trump’s ongoing effort to bolster American manufacturing and secure the US steel industry.

Trump doubles steel tariffs to 50% in push to protect US industry

The RBI annual report shows a nuanced picture of counterfeiting in India. Even though there is a decrease in the total number of counterfeited notes for the third consecutive year, there has been a significant surge in the counterfeiting of Rs 500 notes.&nbsp;According to the report released on May 29, 2025, banks have detected 2,17,396 fake currency notes in FY 25, a decrease in number from 2,22,639 in FY24 and &nbsp;2,25,769 in FY23, implying the enhanced security features of the banknotes and increased vigilance in the banking sector.&nbsp;Notably, the troubling trend is the increase in counterfeit Rs 500 notes, which witnessed a year-over-year (y-o-y) growth of 37.3 per cent, with 1.18 lakh fake notes being detected in FY25, up from 85,711 detected in FY24. A similar trend was observed for Rs 200 notes, with a fake currency count of 32,660.A contrasting trend is seen for counterfeit Rs 2000 notes, with only 3,508 pieces compared to the 26,035 of last year, a total decrease of 86.5 per cent. A similar trend was observed for the counterfeit detection of the lower denominations, like Rs 10, Rs 20, Rs 50 and Rs 100.&nbsp;<h2>Why is it alarming</h2>This is alarming considering the distribution of denominations in the notes that are in circulation in the market. Rs500 constitutes 40.9 per cent of all the currency in circulation, and it accounts for 80.6 per cent of the total value of the market currencies. So this denomination is central to India's cash flow. Demonatisation which was announced in 2016 to cripple terror funding, counterfeiting and reduce black money in circulation, doesn't reflect in the data. The fake currency note of Rs 2000 did witness a decline, which is partly due to its gradual withdrawal from circulation. Security agencies have persistently established a link between counterfeiting and terrorism. In the early 2010s, Indian security agencies traced counterfeit notes to Pakistan ISI-backed printing facilities. This recent RBI report is counter to the government's narrative and raises major red flags.The central bank is responding to these challenges with increased vigilance. It has ceased printing of Rs 2, Rs 5 and Rs 2000 notes. It is also promoting the Indian digital rupee, with its value increased by 334 per cent in 2024-25.&nbsp;&nbsp;

RBI reports surge in counterfeit Rs 500 Notes amid overall decline in fake currency detection 

The RBI annual report shows a nuanced picture of counterfeiting in India. Even though there is a decrease in the total number of counterfeited notes for the third consecutive year, there has been a significant surge in the counterfeiting of Rs 500 notes. According to the report released on May 29, 2025, banks have detected 2,17,396 fake currency notes in FY 25, a decrease in number from 2,22,639 in FY24 and 2,25,769 in FY23, implying the enhanced security features of the banknotes and increased vigilance in the banking sector. Notably, the troubling trend is the increase in counterfeit Rs 500 notes, which witnessed a year-over-year (y-o-y) growth of 37.3 per cent, with 1.18 lakh fake notes being detected in FY25, up from 85,711 detected in FY24. A similar trend was observed for Rs 200 notes, with a fake currency count of 32,660. A contrasting trend is seen for counterfeit Rs 2000 notes, with only 3,508 pieces compared to the 26,035 of last year, a total decrease of 86.5 per cent. A similar trend was observed for the counterfeit detection of the lower denominations, like Rs 10, Rs 20, Rs 50 and Rs 100. Why is it alarming This is alarming considering the distribution of denominations in the notes that are in circulation in the market. Rs500 constitutes 40.9 per cent of all the currency in circulation, and it accounts for 80.6 per cent of the total value of the market currencies. So this denomination is central to India's cash flow. Demonatisation which was announced in 2016 to cripple terror funding, counterfeiting and reduce black money in circulation, doesn't reflect in the data. The fake currency note of Rs 2000 did witness a decline, which is partly due to its gradual withdrawal from circulation. Security agencies have persistently established a link between counterfeiting and terrorism. In the early 2010s, Indian security agencies traced counterfeit notes to Pakistan ISI-backed printing facilities. This recent RBI report is counter to the government's narrative and raises major red flags. The central bank is responding to these challenges with increased vigilance. It has ceased printing of Rs 2, Rs 5 and Rs 2000 notes. It is also promoting the Indian digital rupee, with its value increased by 334 per cent in 2024-25.

RBI reports surge in counterfeit Rs 500 Notes amid overall decline in fake currency detection&nbsp;

RBI flags increase in counterfeits of high value denomination

India's economic growth for the fiscal year 2024-25 (FY25) has significantly slowed, with GDP expanding by only 6.5 per cent, the weakest pace in four years.&nbsp;&nbsp;This decline from the previous year’s 9.2 per cent reflects a combination of domestic challenges, including fiscal stress, slower consumer spending, and external economic pressures. The government has faced difficulties in meeting its fiscal targets, and quarterly growth numbers indicate a downward trajectory almost throughout the fiscal year.&nbsp;&nbsp;The economy grew at 7.4 per cent in the fourth quarter (Q4) of FY25.<h2>Weakening growth and fiscal deficit pressures</h2>India's growth slowdown was more pronounced in the first three quarters of FY25, with the economy expanding at 6.7 per cent in Q1 FY25, 5.4 per cent in Q2, and 6.2 per cent in Q3. The Q4 growth of 7.4 per cent helped somewhat, but the overall annual growth was still significantly below expectations.&nbsp;Several sectors, including manufacturing, construction, and agriculture, faced headwinds, contributing to the deceleration.&nbsp;Meanwhile, the Indian government is grappling with an increasing fiscal deficit, which reached alarming levels in FY25. Despite fiscal consolidation efforts, India's fiscal deficit for FY25 stood at&nbsp;₹15.77 lakh crore ($184.29 billion), slightly higher than the ₹15.70 lakh crore ($183.47 billion) estimated for the year, according to the provisional data released by the Controller General of Accounts (CGA) on May 30.This widening deficit is primarily driven by higher-than-expected government expenditure, especially on welfare schemes, infrastructure development, and energy subsidies.&nbsp;&nbsp;The Reserve Bank of India (RBI) has been forced to intervene, transferring a larger-than-expected dividend to the government to ease some of the fiscal pressures. This has provided some short-term relief, but the overall fiscal situation remains precarious.&nbsp;<h2>Risks and future projections</h2>The outlook for India’s economy in FY26 remains uncertain, with risks to growth continuing to mount. A key concern is the ongoing global economic volatility, which has affected trade and investment flows into India.&nbsp;&nbsp;With slower growth in major economies like the US, Europe, and China, the Indian economy faces challenges in sustaining high growth in exports and attracting foreign investments into the country.Additionally, geopolitical tensions and the continued impact of conflicts across the globe have further added to global instability, making it more difficult for emerging economies like India to maintain robust growth.&nbsp;Inflation has remained persistently high throughout FY25. Although the RBI has cut interest rates in an attempt to curb inflationary pressures, the cost of food and fuel has continued to rise, limiting the purchasing power of the consumers and dampening overall demand.&nbsp;&nbsp;The government has been working to contain inflation by implementing various supply-side measures, but the persistent price pressures and strain on global supply chains are expected to remain a challenge in the near future.&nbsp;Looking ahead, India's growth prospects will largely depend on the government's ability to balance fiscal responsibility with necessary spending on infrastructure, social welfare, and job creation. The country will also need to focus on addressing structural issues such as labour market inefficiencies and bottlenecks in key sectors to drive future growth.&nbsp;&nbsp;While the long-term potential of the Indian economy remains strong, immediate challenges require careful management of fiscal policy, inflation, and external factors that may hinder recovery. &nbsp;

Business & Economy: The government has struggled to meet its fiscal targets, with quarterly growth numbers showing a downward trajectory. 

India's economic growth for the fiscal year 2024-25 (FY25) has significantly slowed, with GDP expanding by only 6.5 per cent, the weakest pace in four years. This decline from the previous year’s 9.2 per cent reflects a combination of domestic challenges, including fiscal stress, slower consumer spending, and external economic pressures. The government has faced difficulties in meeting its fiscal targets, and quarterly growth numbers indicate a downward trajectory almost throughout the fiscal year. The economy grew at 7.4 per cent in the fourth quarter (Q4) of FY25. Weakening growth and fiscal deficit pressures India's growth slowdown was more pronounced in the first three quarters of FY25, with the economy expanding at 6.7 per cent in Q1 FY25, 5.4 per cent in Q2, and 6.2 per cent in Q3. The Q4 growth of 7.4 per cent helped somewhat, but the overall annual growth was still significantly below expectations. Several sectors, including manufacturing, construction, and agriculture, faced headwinds, contributing to the deceleration. Meanwhile, the Indian government is grappling with an increasing fiscal deficit, which reached alarming levels in FY25. Despite fiscal consolidation efforts, India's fiscal deficit for FY25 stood at ₹15.77 lakh crore ($184.29 billion), slightly higher than the ₹15.70 lakh crore ($183.47 billion) estimated for the year, according to the provisional data released by the Controller General of Accounts (CGA) on May 30. This widening deficit is primarily driven by higher-than-expected government expenditure, especially on welfare schemes, infrastructure development, and energy subsidies. The Reserve Bank of India (RBI) has been forced to intervene, transferring a larger-than-expected dividend to the government to ease some of the fiscal pressures. This has provided some short-term relief, but the overall fiscal situation remains precarious. Risks and future projections The outlook for India’s economy in FY26 remains uncertain, with risks to growth continuing to mount. A key concern is the ongoing global economic volatility, which has affected trade and investment flows into India. With slower growth in major economies like the US, Europe, and China, the Indian economy faces challenges in sustaining high growth in exports and attracting foreign investments into the country. Additionally, geopolitical tensions and the continued impact of conflicts across the globe have further added to global instability, making it more difficult for emerging economies like India to maintain robust growth. Inflation has remained persistently high throughout FY25. Although the RBI has cut interest rates in an attempt to curb inflationary pressures, the cost of food and fuel has continued to rise, limiting the purchasing power of the consumers and dampening overall demand. The government has been working to contain inflation by implementing various supply-side measures, but the persistent price pressures and strain on global supply chains are expected to remain a challenge in the near future. Looking ahead, India's growth prospects will largely depend on the government's ability to balance fiscal responsibility with necessary spending on infrastructure, social welfare, and job creation. The country will also need to focus on addressing structural issues such as labour market inefficiencies and bottlenecks in key sectors to drive future growth. While the long-term potential of the Indian economy remains strong, immediate challenges require careful management of fiscal policy, inflation, and external factors that may hinder recovery.

India's economic growth for FY25 has slowed to 6.5%, the weakest pace in four years, due to domestic challenges such as fiscal stress, slower consumer spending, and external economic pressures.&nbsp;

India's GDP growth slows to 6.5% in FY25 amid fiscal and global headwinds

Since Russia's invasion of Ukraine in February 2022, European countries and the US have been instrumental in providing military, financial, and humanitarian support to Ukraine.&nbsp;Yet, as the war continues to devastate the region, a glaring paradox emerges: Western countries, despite their public support for Ukraine, are indirectly funding Russia's war machine by continuing to purchase Russian fossil fuels.&nbsp;This situation underscores the complex and often contradictory nature of international trade, where geopolitical rivalries and economic realities clash in troubling ways.Before Russia’s invasion of Ukraine, European countries were deeply reliant on Russian energy. In 2021, Europe imported around 40 per cent of its natural gas and 25 per cent of its oil from Russia. While some European nations had begun moving towards energy diversification, the Russian invasion intensified efforts to break free from Russian fossil fuels.&nbsp;However, the transition has not been as swift as many hoped, and despite sanctions and promises to reduce reliance on Russian energy, European countries are still purchasing significant quantities of Russian oil, gas, and coal.According to a&nbsp;BBC report, Russia’s fossil fuel exports generated an astonishing $242 billion in revenue in 2023, a year marked by heightened sanctions. These revenues have helped Russia fund its military efforts, and a substantial portion of this income has been generated from sales to countries outside the West.&nbsp;While the European Union (EU) and the US have significantly reduced their purchases of Russian energy, countries like China, India, and Turkey have stepped in to absorb the surplus. This dynamic has allowed Russia to cushion the blow of Western sanctions, ultimately prolonging the war.In recent months, Europe has made substantial progress in reducing its dependence on Russian gas, but the same cannot be said for oil. The EU introduced a price cap on Russian crude oil and refined products in December 2022, but countries like Hungary have continued to rely on Russian oil, undermining the sanctions.&nbsp;While the EU as a whole has made strides in curbing Russian energy imports,&nbsp;Energy and Clean Air notes that oil shipments from Russia to Europe still persist through indirect channels, with some countries using intermediary nations to procure Russian oil. This loophole has allowed Russia to continue reaping profits despite the sanctions.<h2>How Russia evades sanctions</h2>One of the West’s key tools for limiting Russia’s oil revenue is the price cap, implemented by the G7 and the EU in December 2022. This price cap was designed to prevent Russia from benefiting from higher oil prices while still allowing oil exports to continue. The idea was to reduce Russia’s ability to fund its war while maintaining stability in global energy markets. However, as&nbsp;Russia Fossil Tracker points out, the price cap has had limited success.The mechanism, which caps the price of Russian oil at $60 per barrel, has been difficult to enforce effectively. Russia has circumvented the price cap by rerouting its oil exports to non-Western countries, such as China and India, where it can sell oil at a discount without facing Western restrictions.&nbsp;In fact, as the&nbsp;Atlantic Council highlights, these countries have been buying Russian oil in increasing quantities, often at prices far below the cap. Russia has been able to sell its oil at discounts ranging from $20 to $30 per barrel, making it attractive for non-Western countries to purchase, further diminishing the intended effect of Western sanctions.This dynamic highlights a significant flaw in the West’s strategy. While the EU and the US can reduce their purchases of Russian energy, they cannot fully control the global flow of oil and gas. With countries like China and India buying discounted Russian oil, Moscow continues to receive substantial revenue, which in turn funds its war effort.&nbsp;As long as Russia’s energy exports are in high demand, the country will be able to navigate around Western sanctions and continue its military operations in Ukraine.Moreover, Russia’s energy companies, such as Gazprom and Rosneft, have also found ways to maintain their production levels, despite sanctions. These firms have managed to retain access to global markets, including the sale of natural gas and oil to non-Western countries. This revenue has been a crucial source of funding for Russia’s war effort, allowing it to purchase arms, maintain military operations, and sustain its political and economic stability.The paradox at the heart of the West’s strategy is clear, while the West continues to provide substantial financial and military support to Ukraine, they are simultaneously financing Russia’s war effort through fossil fuel imports.&nbsp;This dilemma is particularly pronounced in Europe, where energy prices have skyrocketed as a result of the sanctions and the ongoing conflict. European governments have faced immense pressure to reduce energy costs for their citizens while balancing their support for Ukraine.As the&nbsp;World Bank has noted, the Western sanctions against Russia have had some impact on Russian revenues, but not enough to significantly weaken the Kremlin’s ability to continue its military operations.&nbsp;Despite the sanctions, Russia’s oil and gas sector remains a primary source of income, and Moscow has been able to shift its exports to countries that are less concerned with the sanctions regime.The result is a situation where the West’s efforts to financially support Ukraine are somewhat nullified by the funds Russia continues to earn from its energy exports. While the EU and the US have provided billions of dollars in aid to Ukraine, the revenue generated by Russia from fossil fuel exports allows the Kremlin to continue its aggression. In effect, the West is funding both sides of the conflict, creating a complex and uncomfortable reality.<h2>Towards energy independence: A long road ahead</h2>As Europe seeks to reduce its reliance on Russian energy, the road ahead is long and fraught with challenges. The EU has set ambitious targets to reduce its reliance on Russian fossil fuels, including plans to phase out Russian oil and gas imports by 2027. However, these plans face significant obstacles, particularly in countries like Hungary, which have resisted efforts to impose further sanctions on Russian energy exports.One of the key challenges in reducing Russia’s energy revenues is the ongoing demand for fossil fuels globally. As&nbsp;Statista reports, despite efforts to transition to renewable energy, the global demand for oil and gas remains high, particularly in emerging markets.&nbsp;This creates a situation where countries outside the West are willing to purchase Russian energy at discounted rates, ensuring that Russia continues to generate significant revenues. Without a more coordinated effort to target these non-Western markets, Russia’s energy exports will remain a crucial source of funding for its war in Ukraine.Moreover, the US has not been entirely free from complicity in this situation. While it has reduced its purchases of Russian oil, it remains a key player in the global energy market. The US also sells oil to countries that have been purchasing Russian oil, further complicating the effort to isolate Russia economically. As long as Russia has access to global energy markets, it will be able to continue financing its war efforts.The paradox of Western support for Ukraine alongside the ongoing financing of Russia’s war through fossil fuel imports highlights a key flaw in the West’s strategy. While significant efforts have been made to reduce Russia’s energy revenues, the global nature of the fossil fuel market makes it difficult to fully isolate Russia.&nbsp;

Russia’s fossil fuel exports generated $242 billion in revenue in 2023, a year marked by heightened sanctions. These revenues have helped Russia fund its military efforts, and a substantial portion of this income has been generated from sales to countries outside the West.

Since Russia's invasion of Ukraine in February 2022, European countries and the US have been instrumental in providing military, financial, and humanitarian support to Ukraine. Yet, as the war continues to devastate the region, a glaring paradox emerges: Western countries, despite their public support for Ukraine, are indirectly funding Russia's war machine by continuing to purchase Russian fossil fuels. This situation underscores the complex and often contradictory nature of international trade, where geopolitical rivalries and economic realities clash in troubling ways. Before Russia’s invasion of Ukraine, European countries were deeply reliant on Russian energy. In 2021, Europe imported around 40 per cent of its natural gas and 25 per cent of its oil from Russia. While some European nations had begun moving towards energy diversification, the Russian invasion intensified efforts to break free from Russian fossil fuels. However, the transition has not been as swift as many hoped, and despite sanctions and promises to reduce reliance on Russian energy, European countries are still purchasing significant quantities of Russian oil, gas, and coal. According to a BBC report, Russia’s fossil fuel exports generated an astonishing $242 billion in revenue in 2023, a year marked by heightened sanctions. These revenues have helped Russia fund its military efforts, and a substantial portion of this income has been generated from sales to countries outside the West. While the European Union (EU) and the US have significantly reduced their purchases of Russian energy, countries like China, India, and Turkey have stepped in to absorb the surplus. This dynamic has allowed Russia to cushion the blow of Western sanctions, ultimately prolonging the war. In recent months, Europe has made substantial progress in reducing its dependence on Russian gas, but the same cannot be said for oil. The EU introduced a price cap on Russian crude oil and refined products in December 2022, but countries like Hungary have continued to rely on Russian oil, undermining the sanctions. While the EU as a whole has made strides in curbing Russian energy imports, Energy and Clean Air notes that oil shipments from Russia to Europe still persist through indirect channels, with some countries using intermediary nations to procure Russian oil. This loophole has allowed Russia to continue reaping profits despite the sanctions. How Russia evades sanctions One of the West’s key tools for limiting Russia’s oil revenue is the price cap, implemented by the G7 and the EU in December 2022. This price cap was designed to prevent Russia from benefiting from higher oil prices while still allowing oil exports to continue. The idea was to reduce Russia’s ability to fund its war while maintaining stability in global energy markets. However, as Russia Fossil Tracker points out, the price cap has had limited success. The mechanism, which caps the price of Russian oil at $60 per barrel, has been difficult to enforce effectively. Russia has circumvented the price cap by rerouting its oil exports to non-Western countries, such as China and India, where it can sell oil at a discount without facing Western restrictions. In fact, as the Atlantic Council highlights, these countries have been buying Russian oil in increasing quantities, often at prices far below the cap. Russia has been able to sell its oil at discounts ranging from $20 to $30 per barrel, making it attractive for non-Western countries to purchase, further diminishing the intended effect of Western sanctions. This dynamic highlights a significant flaw in the West’s strategy. While the EU and the US can reduce their purchases of Russian energy, they cannot fully control the global flow of oil and gas. With countries like China and India buying discounted Russian oil, Moscow continues to receive substantial revenue, which in turn funds its war effort. As long as Russia’s energy exports are in high demand, the country will be able to navigate around Western sanctions and continue its military operations in Ukraine. Moreover, Russia’s energy companies, such as Gazprom and Rosneft, have also found ways to maintain their production levels, despite sanctions. These firms have managed to retain access to global markets, including the sale of natural gas and oil to non-Western countries. This revenue has been a crucial source of funding for Russia’s war effort, allowing it to purchase arms, maintain military operations, and sustain its political and economic stability. The paradox at the heart of the West’s strategy is clear, while the West continues to provide substantial financial and military support to Ukraine, they are simultaneously financing Russia’s war effort through fossil fuel imports. This dilemma is particularly pronounced in Europe, where energy prices have skyrocketed as a result of the sanctions and the ongoing conflict. European governments have faced immense pressure to reduce energy costs for their citizens while balancing their support for Ukraine. As the World Bank has noted, the Western sanctions against Russia have had some impact on Russian revenues, but not enough to significantly weaken the Kremlin’s ability to continue its military operations. Despite the sanctions, Russia’s oil and gas sector remains a primary source of income, and Moscow has been able to shift its exports to countries that are less concerned with the sanctions regime. The result is a situation where the West’s efforts to financially support Ukraine are somewhat nullified by the funds Russia continues to earn from its energy exports. While the EU and the US have provided billions of dollars in aid to Ukraine, the revenue generated by Russia from fossil fuel exports allows the Kremlin to continue its aggression. In effect, the West is funding both sides of the conflict, creating a complex and uncomfortable reality. Towards energy independence: A long road ahead As Europe seeks to reduce its reliance on Russian energy, the road ahead is long and fraught with challenges. The EU has set ambitious targets to reduce its reliance on Russian fossil fuels, including plans to phase out Russian oil and gas imports by 2027. However, these plans face significant obstacles, particularly in countries like Hungary, which have resisted efforts to impose further sanctions on Russian energy exports. One of the key challenges in reducing Russia’s energy revenues is the ongoing demand for fossil fuels globally. As Statista reports, despite efforts to transition to renewable energy, the global demand for oil and gas remains high, particularly in emerging markets. This creates a situation where countries outside the West are willing to purchase Russian energy at discounted rates, ensuring that Russia continues to generate significant revenues. Without a more coordinated effort to target these non-Western markets, Russia’s energy exports will remain a crucial source of funding for its war in Ukraine. Moreover, the US has not been entirely free from complicity in this situation. While it has reduced its purchases of Russian oil, it remains a key player in the global energy market. The US also sells oil to countries that have been purchasing Russian oil, further complicating the effort to isolate Russia economically. As long as Russia has access to global energy markets, it will be able to continue financing its war efforts. The paradox of Western support for Ukraine alongside the ongoing financing of Russia’s war through fossil fuel imports highlights a key flaw in the West’s strategy. While significant efforts have been made to reduce Russia’s energy revenues, the global nature of the fossil fuel market makes it difficult to fully isolate Russia.

Russia’s fossil fuel exports generated $242 billion in revenue in 2023, a year marked by heightened sanctions. These revenues have helped Russia fund its military efforts, and a substantial portion of this income has been generated from sales to countries outside the West.

Is the West funding Russia’s war in Ukraine through fossil fuels?

As the global economy reels from President Donald Trump’s aggressive trade manoeuvres, Wall Street has coined a nickname that’s quickly gone viral, and it’s getting under Trump’s skin.&nbsp;TACO Trade, short for ‘Trump Always Chickens Out’, is a term first introduced by Robert Armstrong, a columnist for the Financial Times. It describes what many economists and investors say has become a hallmark of Trump’s approach to trade policy, threatening steep tariffs to gain leverage and then backtracking when markets react adversely.<h2>What is the ‘TACO Trade’?</h2>According to the Financial Times, TACO Trade refers to a recurring cycle: Trump threatens sky-high tariffs; global markets tumble; the president delays or waters down the measures; and markets bounce back as investors anticipate the pattern.&nbsp;For instance, as reported by Bloomberg, Trump announced sweeping new tariffs on nearly all trading partners on April 2, including a 26 per cent duty on Indian imports. But following a sharp sell-off in equities, including an 8 per cent drop in Hong Kong’s Hang Seng and a 9 per cent plunge in Tokyo’s Nikkei 225, Trump paused the tariffs seven days later for a 90-day window to renegotiate trade deals.<h2>Trump reacts&nbsp;</h2>Asked about the viral acronym during a White House media interaction, Trump bristled at the suggestion that he was retreating under pressure. “You call that chickening out? It’s called negotiation,” he told reporters, adding, “That’s a nasty question.” He went on to clarify that he often starts with a ‘ridiculously high number’ and then negotiates down, according to The New York Times.&nbsp;He also defended his decision to ease tariffs on China, saying, “We helped them… they were having difficulty because we were basically going cold turkey with them.”&nbsp;As per The Guardian, analysts argue that these recurring pullbacks have become so consistent that traders now price them into market forecasts, leading to sharp rebounds after Trump softens his stance.<h2>Trump tariff faces legal heat&nbsp;</h2>In a major blow to Trump’s economic agenda, a US federal court recently ruled that the president exceeded his authority when imposing wide-ranging tariffs under the International Emergency Economic Powers Act (IEEPA), according to Reuters.&nbsp;&nbsp;The court held that a trade deficit does not constitute an “unusual and extraordinary threat,” invalidating the tariffs announced in April as part of Trump’s so-called ‘Liberation Day’ package.&nbsp;As per Associated Press, the ruling was cheered by investors and trade partners. Stock indices such as India’s Sensex, Japan’s Nikkei, and South Korea’s KOSPI posted gains immediately after the verdict.&nbsp;However, the Trump administration appealed the ruling, and a federal appeals court has temporarily reinstated the tariffs, citing national security concerns. This means the 145 per cent duties on Chinese goods and baseline 10–26 per cent tariffs on others remain in place pending a final judgment.<h2>Why TACO Trade matters?</h2>According to Reuters, many global firms are now reconsidering their supply chain strategies amid trade uncertainty. For economists and investors, the “TACO Trade” phenomenon is more than a meme, it reflects an underlying instability in trade governance and a lack of policy clarity from the White House.&nbsp;“It’s not about ‘chickening out,’” Trump said defiantly this week, “it’s called smart negotiating.”Still, as Wall Street embraces the TACO metaphor, and markets continue to react in predictable waves,&nbsp;the label may prove stickier than Trump expects.&nbsp;

Business & Economy: The term, coined by Robert Armstrong for the Financial Times, refers to a recurring cycle where Trump threatens high tariffs to gain leverage and then backtracking when markets react adversely. 

As the global economy reels from President Donald Trump’s aggressive trade manoeuvres, Wall Street has coined a nickname that’s quickly gone viral, and it’s getting under Trump’s skin. TACO Trade, short for ‘Trump Always Chickens Out’, is a term first introduced by Robert Armstrong, a columnist for the Financial Times. It describes what many economists and investors say has become a hallmark of Trump’s approach to trade policy, threatening steep tariffs to gain leverage and then backtracking when markets react adversely. What is the ‘TACO Trade’? According to the Financial Times, TACO Trade refers to a recurring cycle: Trump threatens sky-high tariffs; global markets tumble; the president delays or waters down the measures; and markets bounce back as investors anticipate the pattern. For instance, as reported by Bloomberg, Trump announced sweeping new tariffs on nearly all trading partners on April 2, including a 26 per cent duty on Indian imports. But following a sharp sell-off in equities, including an 8 per cent drop in Hong Kong’s Hang Seng and a 9 per cent plunge in Tokyo’s Nikkei 225, Trump paused the tariffs seven days later for a 90-day window to renegotiate trade deals. Trump reacts Asked about the viral acronym during a White House media interaction, Trump bristled at the suggestion that he was retreating under pressure. “You call that chickening out? It’s called negotiation,” he told reporters, adding, “That’s a nasty question.” He went on to clarify that he often starts with a ‘ridiculously high number’ and then negotiates down, according to The New York Times. He also defended his decision to ease tariffs on China, saying, “We helped them… they were having difficulty because we were basically going cold turkey with them.” As per The Guardian, analysts argue that these recurring pullbacks have become so consistent that traders now price them into market forecasts, leading to sharp rebounds after Trump softens his stance. Trump tariff faces legal heat In a major blow to Trump’s economic agenda, a US federal court recently ruled that the president exceeded his authority when imposing wide-ranging tariffs under the International Emergency Economic Powers Act (IEEPA), according to Reuters. The court held that a trade deficit does not constitute an “unusual and extraordinary threat,” invalidating the tariffs announced in April as part of Trump’s so-called ‘Liberation Day’ package. As per Associated Press, the ruling was cheered by investors and trade partners. Stock indices such as India’s Sensex, Japan’s Nikkei, and South Korea’s KOSPI posted gains immediately after the verdict. However, the Trump administration appealed the ruling, and a federal appeals court has temporarily reinstated the tariffs, citing national security concerns. This means the 145 per cent duties on Chinese goods and baseline 10–26 per cent tariffs on others remain in place pending a final judgment. Why TACO Trade matters? According to Reuters, many global firms are now reconsidering their supply chain strategies amid trade uncertainty. For economists and investors, the “TACO Trade” phenomenon is more than a meme, it reflects an underlying instability in trade governance and a lack of policy clarity from the White House. “It’s not about ‘chickening out,’” Trump said defiantly this week, “it’s called smart negotiating.” Still, as Wall Street embraces the TACO metaphor, and markets continue to react in predictable waves, the label may prove stickier than Trump expects.

The term "TACO Trade" has gained popularity as Wall Street criticises President Donald Trump's aggressive trade policies.&nbsp;

What is ‘TACO Trade’? Trump's new nickname that fumes him amid the tariff legal saga

President Donald Trump get a temporary legal lifeline for his sweeping April 2025 tariff agenda, but it’s only a pause, not a win.&nbsp; &nbsp;According to Bloomberg, on May 29, a US federal appeals court has stayed a lower court ruling that would have forced his administration to unwind the majority of tariffs imposed under the International Emergency Economic Powers Act (IEEPA).&nbsp;On May 28, the US Court of International Trade dealt a major blow, ruling that Trump had overreached by using emergency powers to impose blanket tariffs on dozens of nations, citing issues like fentanyl trafficking and trade deficits as national threats.&nbsp;&nbsp;According to Bloomberg Economics, the ruling would have slashed the average US tariff rate from nearly 27 per cent to below 6 per cent, a dramatic rollback of Trump’s hardline trade stance.&nbsp;Trump responded on social media, labelling the court’s decision “so wrong and so political” and urging the Supreme Court to act “quickly and decisively.” White House press secretary Karoline Leavitt echoed his stance, warning that if courts could derail a president’s trade policy, it would weaken “Presidential Power” and disrupt diplomacy, as per Bloomberg.&nbsp;&nbsp;While the stay allows the tariffs to remain in place at least until 9 June, when further legal arguments will be heard, the administration knows this is only a temporary shield as per Bloomberg.&nbsp;&nbsp;According to Bloomberg, a second federal judge has also struck down a set of tariffs, though that ruling is limited to a specific plaintiff and delayed for 14 days to allow for appeal.<h2>Team Trump eyes for a backup plan</h2> Facing legal headwinds, the Trump administration is already exploring alternative pathways to keep its protectionist trade agenda intact.&nbsp;&nbsp;As per Bloomberg, officials are weighing options under other laws , most notably Section 232 of the Trade Expansion Act and Section 301 of the Trade Act of 1974, both of which have been used before to target imports on national security or unfair trade grounds.&nbsp;Section 232, in particular, has formed the backbone of Trump’s tariffs on steel, aluminium, and vehicles since 2017. According to Bloomberg, these tools are considered more legally durable than IEEPA, but they’re slower. Investigations can take up to 270 days, although White House insiders suggest processes may be fast-tracked.&nbsp;Peter Navarro, Trump’s former trade adviser, told Bloomberg that “the Trump tariff agenda is alive, well, healthy, and will be implemented to protect you, to save your jobs and your factories.” He hinted that US Trade Representative Jamieson Greer would announce new strategies shortly. However, some Trump allies remain sceptical of the timeline.&nbsp;“The idea that Trump is going to turn to plan B and do tariffs by other means has problems,” said James Lucier of Capital Alpha Partners, speaking to Bloomberg. “Yes, he will do it. But he is running out of time to get results before the midterm elections.”&nbsp;Section 122, which allows temporary tariffs of up to 15 per cent for 150 days, was also discussed.&nbsp; &nbsp;But Navarro downplayed it, citing its limited duration. Meanwhile, Section 301 remains a wildcard as it has been used before, particularly against China, and could provide broader trade tools if IEEPA is struck down for good, as per Bloomberg.&nbsp;<h2>Global implications and the road ahead</h2> The court battles come at a time when global trade remains fragile, with Trump’s April tariffs already straining relations with major economies. The initial ruling would have voided levies on imports from key partners like China, Canada, and Mexico and, as Bloomberg noted, blocked nearly two-thirds of the administration’s tariffs. With this legal uncertainty in play, trading partners are watching closely. If Trump is forced to unwind tariffs, the US may lose bargaining power in ongoing negotiations over market access and manufacturing policy. For now, Trump’s legal team remains defiant, promising to escalate the fight all the way to the Supreme Court if needed. But as analysts warn, hastily reintroducing tariffs through other channels could open the door to more lawsuits — unless the process is rock-solid. “If Trump jumps through the hoops and does all the paperwork for Section 232 tariffs, then he may have tariffs that are legally sustainable,” Lucier told Bloomberg. “But if he rushes it, the same anti-tariff forces will take him to court again.” The court’s decision has bought Trump time, but not clarity. As legal battles escalate and the 2026 midterm clock ticks louder, the future of America’s aggressive trade policy hangs in the balance.&nbsp;

Business & Economy: The stay allows the tariffs to remain in place until 9 June, when further legal arguments will be heard. 

President Donald Trump get a temporary legal lifeline for his sweeping April 2025 tariff agenda, but it’s only a pause, not a win. According to Bloomberg, on May 29, a US federal appeals court has stayed a lower court ruling that would have forced his administration to unwind the majority of tariffs imposed under the International Emergency Economic Powers Act (IEEPA). On May 28, the US Court of International Trade dealt a major blow, ruling that Trump had overreached by using emergency powers to impose blanket tariffs on dozens of nations, citing issues like fentanyl trafficking and trade deficits as national threats. According to Bloomberg Economics, the ruling would have slashed the average US tariff rate from nearly 27 per cent to below 6 per cent, a dramatic rollback of Trump’s hardline trade stance. Trump responded on social media, labelling the court’s decision “so wrong and so political” and urging the Supreme Court to act “quickly and decisively.” White House press secretary Karoline Leavitt echoed his stance, warning that if courts could derail a president’s trade policy, it would weaken “Presidential Power” and disrupt diplomacy, as per Bloomberg. While the stay allows the tariffs to remain in place at least until 9 June, when further legal arguments will be heard, the administration knows this is only a temporary shield as per Bloomberg. According to Bloomberg, a second federal judge has also struck down a set of tariffs, though that ruling is limited to a specific plaintiff and delayed for 14 days to allow for appeal. Team Trump eyes for a backup plan Facing legal headwinds, the Trump administration is already exploring alternative pathways to keep its protectionist trade agenda intact. As per Bloomberg, officials are weighing options under other laws , most notably Section 232 of the Trade Expansion Act and Section 301 of the Trade Act of 1974, both of which have been used before to target imports on national security or unfair trade grounds. Section 232, in particular, has formed the backbone of Trump’s tariffs on steel, aluminium, and vehicles since 2017. According to Bloomberg, these tools are considered more legally durable than IEEPA, but they’re slower. Investigations can take up to 270 days, although White House insiders suggest processes may be fast-tracked. Peter Navarro, Trump’s former trade adviser, told Bloomberg that “the Trump tariff agenda is alive, well, healthy, and will be implemented to protect you, to save your jobs and your factories.” He hinted that US Trade Representative Jamieson Greer would announce new strategies shortly. However, some Trump allies remain sceptical of the timeline. “The idea that Trump is going to turn to plan B and do tariffs by other means has problems,” said James Lucier of Capital Alpha Partners, speaking to Bloomberg. “Yes, he will do it. But he is running out of time to get results before the midterm elections.” Section 122, which allows temporary tariffs of up to 15 per cent for 150 days, was also discussed. But Navarro downplayed it, citing its limited duration. Meanwhile, Section 301 remains a wildcard as it has been used before, particularly against China, and could provide broader trade tools if IEEPA is struck down for good, as per Bloomberg. Global implications and the road ahead The court battles come at a time when global trade remains fragile, with Trump’s April tariffs already straining relations with major economies. The initial ruling would have voided levies on imports from key partners like China, Canada, and Mexico and, as Bloomberg noted, blocked nearly two-thirds of the administration’s tariffs. With this legal uncertainty in play, trading partners are watching closely. If Trump is forced to unwind tariffs, the US may lose bargaining power in ongoing negotiations over market access and manufacturing policy. For now, Trump’s legal team remains defiant, promising to escalate the fight all the way to the Supreme Court if needed. But as analysts warn, hastily reintroducing tariffs through other channels could open the door to more lawsuits — unless the process is rock-solid. “If Trump jumps through the hoops and does all the paperwork for Section 232 tariffs, then he may have tariffs that are legally sustainable,” Lucier told Bloomberg. “But if he rushes it, the same anti-tariff forces will take him to court again.” The court’s decision has bought Trump time, but not clarity. As legal battles escalate and the 2026 midterm clock ticks louder, the future of America’s aggressive trade policy hangs in the balance.

A US federal appeals court has stayed a lower court ruling that would have forced President Donald Trump to unwind most of the tariffs imposed under the International Emergency Economic Powers Act (IEEPA).&nbsp;

Trump gets slight relief as tariffs temporarily reinstated amid ongoing legal battle

Trade negotiations between the United States and China are “a bit stalled”, and reaching a final agreement will likely require direct talks between US President Donald Trump and Chinese President Xi Jinping, US Treasury Secretary Scott Bessent stated in an interview with Fox News on May 29.&nbsp;Bessent, who played a key role in the breakthrough talks in Geneva, Switzerland, earlier this month that temporarily halted the imposition of tariffs between the two countries, acknowledged that progress since the May truce has been slow.&nbsp;He emphasised that the complexity of the ongoing trade issues will require both leaders to weigh in personally for a resolution. “They have a good relationship, and I am confident that the Chinese will come to the table when President Trump makes his preferences known,” he said.&nbsp;Bessent’s remarks come after a period of escalating tensions between the world’s two largest economies. In mid-May, the US and China agreed to a 90-day pause on tariffs, a move that brought relief to global markets. However, this agreement did not address the underlying causes of the trade war, such as China’s state-controlled economy and US concerns over intellectual property theft.&nbsp;Since the pause, Washington has introduced new measures targeting Chinese technology companies. The US has restricted the export of chip design software and certain jet engine parts to China, further escalating tensions.&nbsp;Additionally, the Trump administration has begun revoking visas for Chinese students with ties to the Communist Party of China, a move that Beijing has called “discriminatory”.&nbsp;Ongoing negotiations amid legal challenges&nbsp;While the US-China talks have recently slowed down, Bessent noted that several large trade deals are nearing completion, particularly with other major trading partners like Japan. He is scheduled to meet with a Japanese delegation on Friday in Washington to discuss ongoing trade issues.&nbsp;However, the legal landscape surrounding US tariffs remains uncertain. This week, the US Court of International Trade ruled that much of the tariffs imposed by the Trump administration were illegal and should be reversed. But just one day later, an appeals court temporarily reinstated the tariffs. Bessent expressed confidence that these legal hurdles would not affect the ongoing trade negotiations, stating, “We have not seen any change in the posture of our trading partners.”&nbsp;With the 90-day tariff truce set to expire on July 9, Bessent indicated that more talks with China are expected in the coming weeks, but he emphasised that a resolution may depend on high-level diplomacy between Trump and Xi.

Treasury Secretary Scott Bessent emphasised that the complexity of the ongoing trade issues will require both leaders to weigh in personally for a resolution.

Trade negotiations between the United States and China are “a bit stalled”, and reaching a final agreement will likely require direct talks between US President Donald Trump and Chinese President Xi Jinping, US Treasury Secretary Scott Bessent stated in an interview with Fox News on May 29. Bessent, who played a key role in the breakthrough talks in Geneva, Switzerland, earlier this month that temporarily halted the imposition of tariffs between the two countries, acknowledged that progress since the May truce has been slow. He emphasised that the complexity of the ongoing trade issues will require both leaders to weigh in personally for a resolution. “They have a good relationship, and I am confident that the Chinese will come to the table when President Trump makes his preferences known,” he said. Bessent’s remarks come after a period of escalating tensions between the world’s two largest economies. In mid-May, the US and China agreed to a 90-day pause on tariffs, a move that brought relief to global markets. However, this agreement did not address the underlying causes of the trade war, such as China’s state-controlled economy and US concerns over intellectual property theft. Since the pause, Washington has introduced new measures targeting Chinese technology companies. The US has restricted the export of chip design software and certain jet engine parts to China, further escalating tensions. Additionally, the Trump administration has begun revoking visas for Chinese students with ties to the Communist Party of China, a move that Beijing has called “discriminatory”. Ongoing negotiations amid legal challenges While the US-China talks have recently slowed down, Bessent noted that several large trade deals are nearing completion, particularly with other major trading partners like Japan. He is scheduled to meet with a Japanese delegation on Friday in Washington to discuss ongoing trade issues. However, the legal landscape surrounding US tariffs remains uncertain. This week, the US Court of International Trade ruled that much of the tariffs imposed by the Trump administration were illegal and should be reversed. But just one day later, an appeals court temporarily reinstated the tariffs. Bessent expressed confidence that these legal hurdles would not affect the ongoing trade negotiations, stating, “We have not seen any change in the posture of our trading partners.” With the 90-day tariff truce set to expire on July 9, Bessent indicated that more talks with China are expected in the coming weeks, but he emphasised that a resolution may depend on high-level diplomacy between Trump and Xi.

Treasury Secretary Scott Bessent emphasised that the complexity of the ongoing trade issues will require both leaders to weigh in personally for a resolution.

Trade talks with China stalled, direct involvement of leaders needed, says US Treasury Secretary

Japan’s core inflation in its capital has surged to the highest level in more than two years, fuelling expectations of a rate hike by the Bank of Japan (BOJ).&nbsp;&nbsp;However, the central bank’s path forward remains fraught, as the economy grapples with a slump in factory output and intensifying trade tensions with the United States.&nbsp;According to Reuters, the Tokyo core consumer price index (CPI), which excludes fresh food costs, rose by 3.6 per cent in May from a year earlier, higher than market forecasts of 3.5 per cent and up from 3.4 per cent in April. This is the fastest rate of increase since January 2023, when inflation peaked at 4.3 per cent.&nbsp;A broader inflation gauge that excludes both fresh food and fuel, and is closely tracked by the BOJ, climbed 3.3 per cent in May. It had risen 3.1 per cent the previous month, indicating that price pressures are deepening beyond just food and energy.&nbsp;Marcel Thieliant, head of Asia-Pacific at Capital Economics, told Reuters: “The Tokyo CPI showed a further broad-based acceleration in inflation, which suggests that the BOJ may hike even earlier than our current forecast of October.”<h2>Factory slowdown raises red flags</h2>While inflation surges, Japan’s manufacturing sector shows signs of weakening. As reported by Reuters, factory output dropped by 0.9 per cent in April from the previous month. Manufacturers anticipate a 9.0 per cent rebound in May, followed by a projected 3.4 per cent dip in June, suggesting volatility and uncertainty within the sector.&nbsp;The BOJ is now confronted with a delicate balancing act: containing inflation without choking off growth at a time when global demand is waning.<h2>US tariffs create additional economic headwinds</h2>Complicating the picture further is Japan’s deteriorating trade relationship with the United States. President Donald Trump’s administration recently imposed steep tariffs on key Japanese exports, including vehicles, steel components, and electronic goods. Some duties reportedly exceed 24 per cent.&nbsp;Reuters notes that while Japan’s overall exports rose by 2 per cent in April, shipments to the US reportedly dropped by 1.8 per cent year-on-year. This decline signals that Trump’s tariff regime is beginning to take a toll on Japan’s external sector.&nbsp;Adding to the uncertainty, the Japanese government has lowered its global growth outlook and acknowledged that the trade friction with Washington could hinder the country’s post-pandemic recovery. The BOJ itself has already revised down its growth forecasts for the year, citing the impact of these tariffs.<h2>Rising food and service costs keep inflation expectations alive</h2>Food inflation remains a major driver of Japan’s price rise. Reuters reports that non-fresh food prices soared by 6.9 per cent in May, while the cost of rice skyrocketed by 93.2 per cent.&nbsp;Additionally, services inflation, which the BOJ closely monitors, rose to 2.2 per cent from 2.0 per cent in April, suggesting firms are beginning to pass labour costs onto consumers.&nbsp;A survey by Teikoku Databank, cited by Reuters, revealed that Japanese companies plan to increase prices on 1,932 food and beverage items in June, triple the number from a year earlier.&nbsp;BOJ Governor Kazuo Ueda told parliament on Friday that the central bank remains attentive to wage hikes and corporate pricing strategies, both of which are crucial to sustained inflation.&nbsp;“Japan may face a tricky situation where public attention to rising food prices heightens inflation expectations, which have so far been stable,” said Tsutomu Watanabe, professor at the University of Tokyo’s graduate school of economics, in an interview with Reuters.<h2>A cautious road ahead for the BOJ</h2>The BOJ exited its ultra-loose monetary stance last year and raised short-term rates to 0.5 per cent in January. However, the timing of the next move remains uncertain.&nbsp;&nbsp;While inflation has clearly exceeded the 2 per cent target, the broader economic environment, including shrinking factory output and external shocks from US protectionism, could restrain the bank’s hand.&nbsp;For now, expectations of another rate hike remain on the table, but the path ahead is far from clear. As Japan contends with internal price pressures and external trade risks, the BOJ will need to weigh its next steps with caution and flexibility.

Business & Economy: However, the central bank path forward remains uncertain due to a slump in factory output and intensifying trade tensions with the US. 

Japan’s core inflation in its capital has surged to the highest level in more than two years, fuelling expectations of a rate hike by the Bank of Japan (BOJ). However, the central bank’s path forward remains fraught, as the economy grapples with a slump in factory output and intensifying trade tensions with the United States. According to Reuters, the Tokyo core consumer price index (CPI), which excludes fresh food costs, rose by 3.6 per cent in May from a year earlier, higher than market forecasts of 3.5 per cent and up from 3.4 per cent in April. This is the fastest rate of increase since January 2023, when inflation peaked at 4.3 per cent. A broader inflation gauge that excludes both fresh food and fuel, and is closely tracked by the BOJ, climbed 3.3 per cent in May. It had risen 3.1 per cent the previous month, indicating that price pressures are deepening beyond just food and energy. Marcel Thieliant, head of Asia-Pacific at Capital Economics, told Reuters: “The Tokyo CPI showed a further broad-based acceleration in inflation, which suggests that the BOJ may hike even earlier than our current forecast of October.” Factory slowdown raises red flags While inflation surges, Japan’s manufacturing sector shows signs of weakening. As reported by Reuters, factory output dropped by 0.9 per cent in April from the previous month. Manufacturers anticipate a 9.0 per cent rebound in May, followed by a projected 3.4 per cent dip in June, suggesting volatility and uncertainty within the sector. The BOJ is now confronted with a delicate balancing act: containing inflation without choking off growth at a time when global demand is waning. US tariffs create additional economic headwinds Complicating the picture further is Japan’s deteriorating trade relationship with the United States. President Donald Trump’s administration recently imposed steep tariffs on key Japanese exports, including vehicles, steel components, and electronic goods. Some duties reportedly exceed 24 per cent. Reuters notes that while Japan’s overall exports rose by 2 per cent in April, shipments to the US reportedly dropped by 1.8 per cent year-on-year. This decline signals that Trump’s tariff regime is beginning to take a toll on Japan’s external sector. Adding to the uncertainty, the Japanese government has lowered its global growth outlook and acknowledged that the trade friction with Washington could hinder the country’s post-pandemic recovery. The BOJ itself has already revised down its growth forecasts for the year, citing the impact of these tariffs. Rising food and service costs keep inflation expectations alive Food inflation remains a major driver of Japan’s price rise. Reuters reports that non-fresh food prices soared by 6.9 per cent in May, while the cost of rice skyrocketed by 93.2 per cent. Additionally, services inflation, which the BOJ closely monitors, rose to 2.2 per cent from 2.0 per cent in April, suggesting firms are beginning to pass labour costs onto consumers. A survey by Teikoku Databank, cited by Reuters, revealed that Japanese companies plan to increase prices on 1,932 food and beverage items in June, triple the number from a year earlier. BOJ Governor Kazuo Ueda told parliament on Friday that the central bank remains attentive to wage hikes and corporate pricing strategies, both of which are crucial to sustained inflation. “Japan may face a tricky situation where public attention to rising food prices heightens inflation expectations, which have so far been stable,” said Tsutomu Watanabe, professor at the University of Tokyo’s graduate school of economics, in an interview with Reuters. A cautious road ahead for the BOJ The BOJ exited its ultra-loose monetary stance last year and raised short-term rates to 0.5 per cent in January. However, the timing of the next move remains uncertain. While inflation has clearly exceeded the 2 per cent target, the broader economic environment, including shrinking factory output and external shocks from US protectionism, could restrain the bank’s hand. For now, expectations of another rate hike remain on the table, but the path ahead is far from clear. As Japan contends with internal price pressures and external trade risks, the BOJ will need to weigh its next steps with caution and flexibility.

Japan's core inflation in Tokyo reached its highest level in over two years, causing expectations of a rate hike by the Bank of Japan (BOJ).&nbsp;

Japan’s inflation at two-year high intensifies pressure on rate hike, but US trade tensions cloud outlook

The Trump administration has directed federal agencies to cease using statistics on race, sex, ethnicity, or national origin in hiring decisions, marking a decisive step toward dismantling diversity, equity, and inclusion (DEI) programs in the federal workforce.The new directive, issued by the Office of Personnel Management (OPM) on May 29, aligns with an executive order signed by President Donald Trump earlier this year to overhaul federal hiring practices and focus purely on “merit, qualifications, and job-related criteria”.Under the new guidelines, federal agencies are prohibited from collecting or distributing demographic data related to race, sex, ethnicity, or national origin when making hiring or promotion decisions. The move aims to remove any consideration of under-representation of certain groups during the hiring process, a concept that has been a cornerstone of DEI initiatives in both government and private sectors for decades.Trump’s administration has long criticised DEI programs, arguing that they are inherently discriminatory against white people and men. The directive follows the president's broader agenda to roll back what he describes as “woke” policies, which he claims prioritise diversity over merit. Proponents of DEI, however, argue that demographic data is a crucial tool for identifying and rectifying systemic inequities and discrimination in the workforce.In addition to halting the use of demographic data, the memo also addresses recruitment practices, advocating for a broader approach that extends beyond elite academic institutions.Agencies are encouraged to focus recruitment efforts on state universities, religious colleges, trade schools, and faith-based organisations, aiming to attract a more diverse array of candidates. The memo stresses that the federal workforce should prioritise “patriotic Americans” who are committed to upholding the Constitution and the rule of law.&nbsp;Broader changes and their impact&nbsp;While the administration's focus on merit-based hiring is framed as a move to streamline and improve government efficiency, critics see it as an ideological shift with deep implications for the composition of the federal workforce.The Trump administration has also introduced new essay questions for civil service job applicants, asking candidates about their commitment to the Constitution, the president’s executive orders, and government efficiency. Critics view these questions as a veiled attempt to instill political loyalty, which could hinder the nonpartisan nature of federal hiring.This latest move is part of Trump’s ongoing efforts to reshape the federal workforce, including proposals to eliminate job protections for many federal employees and directly hire and fire personnel.The memo on hiring changes signals a continued transformation in how the federal government approaches staffing, with a sharp focus on ideological alignment and adherence to the president’s vision.Max Stier, president of the Partnership for Public Service, expressed concerns about the potential for this new approach to discourage a diverse range of applicants, arguing that it could be perceived as a loyalty test rather than a fair evaluation of skills, according to a Bloomberg article.“This is a move to ensure loyalty to the president of the day,” Stier said, warning that it risks turning the hiring process into a tool for political allegiance rather than merit. He also pointed out that adding a political litmus test, such as the new essay questions (to be implemented in civil service job applications), would make it more difficult for the government to hire qualified, nonpartisan employees.

The new directive, issued by the Office of Personnel Management (OPM), aligns with an executive order signed by President Donald Trump earlier this year to overhaul federal hiring practices and focus purely on merit, qualifications, and job-related criteria.

The Trump administration has directed federal agencies to cease using statistics on race, sex, ethnicity, or national origin in hiring decisions, marking a decisive step toward dismantling diversity, equity, and inclusion (DEI) programs in the federal workforce. The new directive, issued by the Office of Personnel Management (OPM) on May 29, aligns with an executive order signed by President Donald Trump earlier this year to overhaul federal hiring practices and focus purely on “merit, qualifications, and job-related criteria”. Under the new guidelines, federal agencies are prohibited from collecting or distributing demographic data related to race, sex, ethnicity, or national origin when making hiring or promotion decisions. The move aims to remove any consideration of under-representation of certain groups during the hiring process, a concept that has been a cornerstone of DEI initiatives in both government and private sectors for decades. Trump’s administration has long criticised DEI programs, arguing that they are inherently discriminatory against white people and men. The directive follows the president's broader agenda to roll back what he describes as “woke” policies, which he claims prioritise diversity over merit. Proponents of DEI, however, argue that demographic data is a crucial tool for identifying and rectifying systemic inequities and discrimination in the workforce. In addition to halting the use of demographic data, the memo also addresses recruitment practices, advocating for a broader approach that extends beyond elite academic institutions. Agencies are encouraged to focus recruitment efforts on state universities, religious colleges, trade schools, and faith-based organisations, aiming to attract a more diverse array of candidates. The memo stresses that the federal workforce should prioritise “patriotic Americans” who are committed to upholding the Constitution and the rule of law. Broader changes and their impact While the administration's focus on merit-based hiring is framed as a move to streamline and improve government efficiency, critics see it as an ideological shift with deep implications for the composition of the federal workforce. The Trump administration has also introduced new essay questions for civil service job applicants, asking candidates about their commitment to the Constitution, the president’s executive orders, and government efficiency. Critics view these questions as a veiled attempt to instill political loyalty, which could hinder the nonpartisan nature of federal hiring. This latest move is part of Trump’s ongoing efforts to reshape the federal workforce, including proposals to eliminate job protections for many federal employees and directly hire and fire personnel. The memo on hiring changes signals a continued transformation in how the federal government approaches staffing, with a sharp focus on ideological alignment and adherence to the president’s vision. Max Stier, president of the Partnership for Public Service, expressed concerns about the potential for this new approach to discourage a diverse range of applicants, arguing that it could be perceived as a loyalty test rather than a fair evaluation of skills, according to a Bloomberg article. “This is a move to ensure loyalty to the president of the day,” Stier said, warning that it risks turning the hiring process into a tool for political allegiance rather than merit. He also pointed out that adding a political litmus test, such as the new essay questions (to be implemented in civil service job applications), would make it more difficult for the government to hire qualified, nonpartisan employees.

The new directive, issued by the Office of Personnel Management (OPM), aligns with an executive order signed by President Donald Trump earlier this year to overhaul federal hiring practices and focus purely on “merit, qualifications, and job-related criteria”.

Trump administration rejigs federal hiring process, bans use of race, ethnicity data

China’s manufacturing sector is poised to contract for the second month in a row in May, signalling fresh strain on the country’s export-heavy economy as it faces simultaneous trade flare-ups with the United States and the European Union, highlights a Reuters poll. &nbsp;According to a Reuters poll of 21 economists, the official Purchasing Managers’ Index (PMI), scheduled for release on Saturday (June 1), is expected to register at 49.5, slightly higher than April’s 49.0, but still below the 50-point threshold that separates expansion from contraction.&nbsp;&nbsp;The latest data reflects a broader slowdown across China’s $19 trillion economy, which is contending with weakening domestic demand, deflation, and a growing property crisis, even as policymakers race to stabilise growth through stimulus.<h2>China is now fighting a trade war on two fronts</h2>The May factory slump comes at a time when China is navigating major trade tensions with both Washington and Brussels.&nbsp;In the US, President Donald Trump has escalated economic hostilities by slapping 145 per cent tariffs on a wide range of Chinese imports — part of his broader push to decouple from China.&nbsp; &nbsp;Although a temporary 90-day tariff truce was reached, with duties lowered to 30 per cent, negotiations remain deadlocked and the core issues unresolved.&nbsp;Simultaneously, the European Union has reportedly launched anti-dumping investigations targeting Chinese tyres and electric vehicles.&nbsp; &nbsp;China has reportedly retaliated with probes into European brandy and dairy products, fuelling fears of a full-fledged trade confrontation with the bloc, as per Reuters.&nbsp;&nbsp;This dual-front pressure is reportedly placing immense strain on China’s industrial backbone, which has traditionally relied on open global markets to power growth.<h2>Domestic challenges are compounding the crisis</h2>According to Reuters, China’s internal economic environment offers little relief. Despite a stronger-than-expected GDP performance in Q1 2025, deflation remains entrenched.&nbsp;&nbsp;The country’s producer price index dropped 2.7 per cent year-on-year in April, extending its contraction for a third consecutive month.&nbsp;&nbsp;Reuters poll highlights that real incomes have stagnated, and consumer spending has yet to rebound convincingly after the pandemic. Meanwhile, the long-running property sector slump continues to drag on overall sentiment and private investment. &nbsp;Even though industrial profits showed some signs of improvement, they remain concentrated among a handful of state-backed firms, leaving smaller manufacturers especially exposed to the current downturn, as per Reuters&nbsp;<h2>Beijing is expected to roll out more stimulus</h2>To counteract the external and internal economic drag, China’s government is reportedly expected to announce further fiscal and monetary stimulus measures. These could reportedly include additional interest rate cuts, tax incentives, infrastructure spending, and targeted credit for small and medium-sized firms. &nbsp;The PMI numbers to be released on June 1 will be followed by the Caixin private sector PMI on June 3, which focuses more on smaller, export-oriented companies. Analysts predict a modest improvement in the Caixin reading, up to 50.6 from 50.4, suggesting fragile but ongoing momentum.<h2>The road ahead is uncertain</h2>As the world’s second-largest economy contends with deepening trade hostilities and an uneven post-pandemic recovery, the question now is whether Beijing can successfully pivot from an export-driven model to a more resilient, demand-led economy.&nbsp;The coming weeks, with trade talks in flux, tariff deadlines looming, and critical economic data releases will be crucial in shaping China’s path through a turbulent global landscape.

Business & Economy: This comes amid China is grappling with major trade tensions with the US and the EU.

China’s manufacturing sector is poised to contract for the second month in a row in May, signalling fresh strain on the country’s export-heavy economy as it faces simultaneous trade flare-ups with the United States and the European Union, highlights a Reuters poll. According to a Reuters poll of 21 economists, the official Purchasing Managers’ Index (PMI), scheduled for release on Saturday (June 1), is expected to register at 49.5, slightly higher than April’s 49.0, but still below the 50-point threshold that separates expansion from contraction. The latest data reflects a broader slowdown across China’s $19 trillion economy, which is contending with weakening domestic demand, deflation, and a growing property crisis, even as policymakers race to stabilise growth through stimulus. China is now fighting a trade war on two fronts The May factory slump comes at a time when China is navigating major trade tensions with both Washington and Brussels. In the US, President Donald Trump has escalated economic hostilities by slapping 145 per cent tariffs on a wide range of Chinese imports — part of his broader push to decouple from China. Although a temporary 90-day tariff truce was reached, with duties lowered to 30 per cent, negotiations remain deadlocked and the core issues unresolved. Simultaneously, the European Union has reportedly launched anti-dumping investigations targeting Chinese tyres and electric vehicles. China has reportedly retaliated with probes into European brandy and dairy products, fuelling fears of a full-fledged trade confrontation with the bloc, as per Reuters. This dual-front pressure is reportedly placing immense strain on China’s industrial backbone, which has traditionally relied on open global markets to power growth. Domestic challenges are compounding the crisis According to Reuters, China’s internal economic environment offers little relief. Despite a stronger-than-expected GDP performance in Q1 2025, deflation remains entrenched. The country’s producer price index dropped 2.7 per cent year-on-year in April, extending its contraction for a third consecutive month. Reuters poll highlights that real incomes have stagnated, and consumer spending has yet to rebound convincingly after the pandemic. Meanwhile, the long-running property sector slump continues to drag on overall sentiment and private investment. Even though industrial profits showed some signs of improvement, they remain concentrated among a handful of state-backed firms, leaving smaller manufacturers especially exposed to the current downturn, as per Reuters Beijing is expected to roll out more stimulus To counteract the external and internal economic drag, China’s government is reportedly expected to announce further fiscal and monetary stimulus measures. These could reportedly include additional interest rate cuts, tax incentives, infrastructure spending, and targeted credit for small and medium-sized firms. The PMI numbers to be released on June 1 will be followed by the Caixin private sector PMI on June 3, which focuses more on smaller, export-oriented companies. Analysts predict a modest improvement in the Caixin reading, up to 50.6 from 50.4, suggesting fragile but ongoing momentum. The road ahead is uncertain As the world’s second-largest economy contends with deepening trade hostilities and an uneven post-pandemic recovery, the question now is whether Beijing can successfully pivot from an export-driven model to a more resilient, demand-led economy. The coming weeks, with trade talks in flux, tariff deadlines looming, and critical economic data releases will be crucial in shaping China’s path through a turbulent global landscape.

China's manufacturing sector is expected to contract for the second consecutive month in May, putting strain on the country's export-heavy economy, highlights a Reuters poll.&nbsp;

China’s May factory slowdown likely to deepens as trade tensions with US and EU escalate

In a stunning move that signals a major policy shift under President Donald Trump’s second administration, the US Securities and Exchange Commission (SEC) has officially dropped its civil enforcement case against Binance, the world’s largest cryptocurrency exchange.&nbsp; &nbsp;The decision was made public in a joint court filing submitted on May 29 in a Washington, DC, federal court, as per Reuters.&nbsp;<h2>What did SEC say</h2>According to Reuters, the SEC said its decision to dismiss the case was based on policy considerations and not a reflection of its stance on cryptocurrency regulation at large. The lawsuit has been dismissed with prejudice, meaning the SEC is legally barred from reopening this specific case in the future.&nbsp;A Binance spokesperson hailed the move as a “landmark moment,” expressing gratitude to SEC Chairman Paul Atkins and the Trump administration. “Innovation can’t thrive under regulation by enforcement,” the spokesperson said, as quoted by Reuters.<h2>Background of the Lawsuit</h2>According to Reuters, the SEC had initially sued Binance and its founder Changpeng Zhao (commonly known as CZ) in June 2023. The agency reportedly accused the crypto giant of inflating trading volumes, diverting customer funds, and misleading investors about its internal compliance mechanisms. The SEC also alleged that Binance facilitated the trading of multiple tokens that, under President Joe Biden’s administration, were considered unregistered securities. &nbsp;This civil case was entirely separate from Binance’s high-profile criminal settlement in November 2023, in which the exchange pleaded guilty to violating US anti-money laundering and sanctions laws. Binance agreed to pay a record $4.32 billion penalty. Zhao himself served a four-month prison term for anti-money laundering violations and was released in September 2024, as per Reuters.<h2>Not just Binance, SEC also dropped Coinbase case</h2>According to Reuters, this isn’t the first crypto enforcement rollback under Trump’s new term. In February 2025, the SEC also dropped a similar case against Coinbase, the largest cryptocurrency exchange in the US, which was accused of listing at least 13 unregistered tokens.&nbsp;&nbsp;Both dismissals reportedly reflect a broader recalibration of regulatory posture under Chairman Paul Atkins.<h2>Atkins’ vision: Clarity over crackdowns</h2>In a speech earlier this month, Atkins emphasized the need for a consistent and transparent regulatory framework. According to Reuters, he stated that one of his top priorities is to create “clear rules of the road” for issuing, trading, and securing digital assets—rules that support innovation while deterring bad actors.&nbsp;For years, the crypto industry has criticized the SEC’s practice of regulating by enforcement rather than issuing clear guidelines. Industry leaders argue that most crypto tokens function more like commodities than securities, a classification that would remove the SEC from the regulatory equation altogether.<h2>What this means for the future of Crypto in the US</h2>The SEC’s decision to withdraw its lawsuit against Binance could be a harbinger of major changes in how digital assets are governed in the US.&nbsp; &nbsp;With both Binance and Coinbase off the legal hook for now, crypto companies may find themselves operating in a more favorable regulatory environment—at least during the current administration.&nbsp;However, the SEC has not ruled out future enforcement in other cases, making it clear that this dismissal should not be interpreted as a blanket approval of the crypto industry’s past conduct.<h2>The road ahead</h2>While this legal victory offers breathing room for Binance and the broader crypto sector, it also raises important questions about the future of investor protections, market transparency, and the regulatory role of federal agencies in the evolving digital economy.&nbsp;As regulatory agencies rethink their approach, one thing is clear: the Trump administration is ushering in a new era for crypto, one that may prioritize innovation over enforcement.

Business & Economy: The decision was made public in a joint court filing, and the SEC stated that the decision was based on policy considerations, not its stance on cryptocurrency regulation. 

In a stunning move that signals a major policy shift under President Donald Trump’s second administration, the US Securities and Exchange Commission (SEC) has officially dropped its civil enforcement case against Binance, the world’s largest cryptocurrency exchange. The decision was made public in a joint court filing submitted on May 29 in a Washington, DC, federal court, as per Reuters. What did SEC say According to Reuters, the SEC said its decision to dismiss the case was based on policy considerations and not a reflection of its stance on cryptocurrency regulation at large. The lawsuit has been dismissed with prejudice, meaning the SEC is legally barred from reopening this specific case in the future. A Binance spokesperson hailed the move as a “landmark moment,” expressing gratitude to SEC Chairman Paul Atkins and the Trump administration. “Innovation can’t thrive under regulation by enforcement,” the spokesperson said, as quoted by Reuters. Background of the Lawsuit According to Reuters, the SEC had initially sued Binance and its founder Changpeng Zhao (commonly known as CZ) in June 2023. The agency reportedly accused the crypto giant of inflating trading volumes, diverting customer funds, and misleading investors about its internal compliance mechanisms. The SEC also alleged that Binance facilitated the trading of multiple tokens that, under President Joe Biden’s administration, were considered unregistered securities. This civil case was entirely separate from Binance’s high-profile criminal settlement in November 2023, in which the exchange pleaded guilty to violating US anti-money laundering and sanctions laws. Binance agreed to pay a record $4.32 billion penalty. Zhao himself served a four-month prison term for anti-money laundering violations and was released in September 2024, as per Reuters. Not just Binance, SEC also dropped Coinbase case According to Reuters, this isn’t the first crypto enforcement rollback under Trump’s new term. In February 2025, the SEC also dropped a similar case against Coinbase, the largest cryptocurrency exchange in the US, which was accused of listing at least 13 unregistered tokens. Both dismissals reportedly reflect a broader recalibration of regulatory posture under Chairman Paul Atkins. Atkins’ vision: Clarity over crackdowns In a speech earlier this month, Atkins emphasized the need for a consistent and transparent regulatory framework. According to Reuters, he stated that one of his top priorities is to create “clear rules of the road” for issuing, trading, and securing digital assets—rules that support innovation while deterring bad actors. For years, the crypto industry has criticized the SEC’s practice of regulating by enforcement rather than issuing clear guidelines. Industry leaders argue that most crypto tokens function more like commodities than securities, a classification that would remove the SEC from the regulatory equation altogether. What this means for the future of Crypto in the US The SEC’s decision to withdraw its lawsuit against Binance could be a harbinger of major changes in how digital assets are governed in the US. With both Binance and Coinbase off the legal hook for now, crypto companies may find themselves operating in a more favorable regulatory environment—at least during the current administration. However, the SEC has not ruled out future enforcement in other cases, making it clear that this dismissal should not be interpreted as a blanket approval of the crypto industry’s past conduct. The road ahead While this legal victory offers breathing room for Binance and the broader crypto sector, it also raises important questions about the future of investor protections, market transparency, and the regulatory role of federal agencies in the evolving digital economy. As regulatory agencies rethink their approach, one thing is clear: the Trump administration is ushering in a new era for crypto, one that may prioritize innovation over enforcement.

The US Securities and Exchange Commission (SEC) has dropped its civil enforcement case against Binance, the world's largest cryptocurrency exchange, marking a significant policy shift under President Donald Trump's second administration.&nbsp;

Trump-era SEC drops Binance lawsuit: Is it a landmark shift in Crypto regulation?

Applications for US jobless benefits rose unexpectedly last week, signalling potential cracks in the labour market as economic uncertainty, driven by trade policies and slow growth, starts to take a toll.According to data released on May 29 by the US Department of Labor, the number of Americans filing new claims for unemployment benefits increased by 14,000, reaching a seasonally adjusted total of 240,000 for the week ending May 24. This surge is slightly higher than economists' expectations of 230,000 claims.The data also showed that the number of people receiving unemployment benefits rose by 26,000 to 1.92 million in mid-May, marking the largest increase in this figure since November 2021. These developments suggest that layoffs are rising, potentially signalling the start of a broader weakening in the labour market.&nbsp;Impact of economic uncertainty and trade policy&nbsp;The uptick in jobless claims coincides with growing concerns over the state of the US economy. The economy of the United States contracted at a 0.2 per cent annualised rate in the first quarter of 2025, primarily due to a sharp increase in imports.Companies rushed to bring in goods before President Donald Trump’s sweeping tariffs on foreign imports came into effect, leading to a temporary surge in trade activity and distorting growth figures.At the same time, corporate profits, which had already been under pressure, took a significant hit. Profits from current production dropped by $118.1 billion in the first quarter, according to a separate report from the Bureau of Economic Analysis. The overall economic slowdown has been further exacerbated by Trump’s tariffs, which continue to cloud the economic outlook.The recent US Trade Court ruling blocked most of the tariffs from going into effect, which was soon followed by the imposition of a stay on the order, and has added yet another layer of uncertainty.Despite the challenges, the labour market had remained relatively strong until now. Employers had been reluctant to lay off workers, partly because of the difficulty in finding labour during the COVID-19 pandemic and its aftermath. However, as the trade war intensifies and profits decline, businesses are becoming increasingly cautious, leading to layoffs in some sectors.The rise in both initial and continuing claims raises the possibility of an uptick in the unemployment rate, which stood at 4.2 per cent in April. Economists are particularly concerned that this may signal a longer-lasting trend.The Federal Reserve has also expressed concern about the weakening economic conditions. In minutes from its May meeting, policymakers acknowledged that the labour market could soften in the coming months due to economic uncertainties, particularly from trade policies.&nbsp;Layoffs and economic forecasts&nbsp;The rising jobless claims are part of a broader trend of increased layoffs, particularly in sectors most affected by trade uncertainties, such as manufacturing and retail. Companies, including Walmart, Microsoft, Chevron, Volvo, and Nissan, have recently announced plans to cut their headcount by a few thousand.However, a survey by the Conference Board found that most US CEOs do not expect to significantly alter their workforce sizes in the coming year, even though nearly 83 per cent foresee a recession within the next 12 to 18 months.For now, businesses are reluctant to make major cuts to their workforce, but the rising jobless claims and economic headwinds suggest that this may change if the economic outlook continues to deteriorate.With inflationary pressures and trade uncertainties looming, the path forward for the US economy remains uncertain, and many are watching closely to see whether jobless claims continue to climb in the coming months.The data underscores the fragility of the US economy as it navigates a challenging global landscape, with the potential for further labour market deterioration if the economic outlook continues to worsen.

The data showed that the number of people receiving unemployment benefits rose by 26,000 to 1.92 million in mid-May, marking the largest increase in this figure since November 2021.

Applications for US jobless benefits rose unexpectedly last week, signalling potential cracks in the labour market as economic uncertainty, driven by trade policies and slow growth, starts to take a toll. According to data released on May 29 by the US Department of Labor, the number of Americans filing new claims for unemployment benefits increased by 14,000, reaching a seasonally adjusted total of 240,000 for the week ending May 24. This surge is slightly higher than economists' expectations of 230,000 claims. The data also showed that the number of people receiving unemployment benefits rose by 26,000 to 1.92 million in mid-May, marking the largest increase in this figure since November 2021. These developments suggest that layoffs are rising, potentially signalling the start of a broader weakening in the labour market. Impact of economic uncertainty and trade policy The uptick in jobless claims coincides with growing concerns over the state of the US economy. The economy of the United States contracted at a 0.2 per cent annualised rate in the first quarter of 2025, primarily due to a sharp increase in imports. Companies rushed to bring in goods before President Donald Trump’s sweeping tariffs on foreign imports came into effect, leading to a temporary surge in trade activity and distorting growth figures. At the same time, corporate profits, which had already been under pressure, took a significant hit. Profits from current production dropped by $118.1 billion in the first quarter, according to a separate report from the Bureau of Economic Analysis. The overall economic slowdown has been further exacerbated by Trump’s tariffs, which continue to cloud the economic outlook. The recent US Trade Court ruling blocked most of the tariffs from going into effect, which was soon followed by the imposition of a stay on the order, and has added yet another layer of uncertainty. Despite the challenges, the labour market had remained relatively strong until now. Employers had been reluctant to lay off workers, partly because of the difficulty in finding labour during the COVID-19 pandemic and its aftermath. However, as the trade war intensifies and profits decline, businesses are becoming increasingly cautious, leading to layoffs in some sectors. The rise in both initial and continuing claims raises the possibility of an uptick in the unemployment rate, which stood at 4.2 per cent in April. Economists are particularly concerned that this may signal a longer-lasting trend. The Federal Reserve has also expressed concern about the weakening economic conditions. In minutes from its May meeting, policymakers acknowledged that the labour market could soften in the coming months due to economic uncertainties, particularly from trade policies. Layoffs and economic forecasts The rising jobless claims are part of a broader trend of increased layoffs, particularly in sectors most affected by trade uncertainties, such as manufacturing and retail. Companies, including Walmart, Microsoft, Chevron, Volvo, and Nissan, have recently announced plans to cut their headcount by a few thousand. However, a survey by the Conference Board found that most US CEOs do not expect to significantly alter their workforce sizes in the coming year, even though nearly 83 per cent foresee a recession within the next 12 to 18 months. For now, businesses are reluctant to make major cuts to their workforce, but the rising jobless claims and economic headwinds suggest that this may change if the economic outlook continues to deteriorate. With inflationary pressures and trade uncertainties looming, the path forward for the US economy remains uncertain, and many are watching closely to see whether jobless claims continue to climb in the coming months. The data underscores the fragility of the US economy as it navigates a challenging global landscape, with the potential for further labour market deterioration if the economic outlook continues to worsen.

The data showed that the number of people receiving unemployment benefits rose by 26,000 to 1.92 million in mid-May, marking the largest increase in this figure since November 2021.

Jobless claims rise as tariffs and layoffs weigh on US labour market

At the Confederation of Indian Industry (CII) Annual Business Summit 2025, Defence Minister Rajnath Singh took the stage to unveil significant strides in India’s defence sector, with particular emphasis on the country’s growing self-reliance under the ‘Make in India’ initiative.The highlight of the minister’s speech was the government’s approval for the Advanced Medium Combat Aircraft (AMCA) project, a critical step in advancing India’s capabilities in the fifth-generation fighter aircraft domain.Singh hailed the AMCA as a “milestone”, stressing that it places India among the select few nations with the technological edge to develop fifth-gen fighter jets. The project, which will see the creation of five prototypes, is set to undergo series production, with the government-run Hindustan Aeronautics Limited (HAL) joining forces with private sector companies in a collaborative effort.The inclusion of the private sector for the first time in such a large-scale defence project highlights a new phase in India’s defence manufacturing ecosystem. Singh made it clear that both public and private firms would compete to bring this advanced fighter to fruition, with HAL no longer being the default producer.The AMCA, expected to roll out its first prototype by 2028-29, will be powered by the indigenous General Electric F-414 engine. It will feature advanced technologies like an internal weapons bay and diverterless supersonic intake, developed indigenously, marking a new era of technological autonomy for India. With China and Pakistan already deploying fifth-gen aircraft, the AMCA project is critical for India to maintain its technological edge and ensure security along its borders.&nbsp;India’s rising economic might&nbsp;Beyond defence, Singh also highlighted India’s economic achievements, noting that the country had ascended to become the world’s fourth-largest economy under Prime Minister Narendra Modi’s leadership. Singh pointed to India’s growing economic might, with the prospect of becoming the third-largest global economy soon, as a sign of India’s increasing influence on the world stage.At the same time, India’s defence sector has witnessed a remarkable transformation. Singh reported that the country’s defence production has more than tripled over the past decade, rising from ₹43,000 crore ($5.03 billion) to ₹1,46,000 crore ($17.08 billion), with a significant contribution from the private sector. Defence exports have surged, crossing ₹24,000 crore ($2.8 billion), with Indian-made weapons and systems now reaching 100 countries.“The involvement of over 16,000 MSMEs in the defence sector is strengthening our self-reliance and providing employment to millions,” Singh stated, highlighting how India’s burgeoning defence manufacturing sector is both an economic and strategic asset. Additionally, India’s rising capabilities in artificial intelligence, cyber defence, and space-based security were acknowledged as critical areas in the modernisation of India’s armed forces.Singh’s comments underscored the evolving strategic and economic landscape of India, wherein the dual pillars of military self-sufficiency and economic strength are becoming increasingly intertwined. As the country continues its growth trajectory, both on the economic front and in its security capabilities, Singh emphasised that India must ensure its defence industry aligns with national interests, positioning itself as a hub for advanced technologies in the years to come.Reaffirming India’s sovereignty over PoK, Singh also said, “We believe that people living in PoK will, sooner or later, voluntarily reunite with India.”“Prime Minister Narendra Modi-led government is committed to its resolve of Ek Bharat Shreshtha Bharat. Most of the people in PoK have a deep connection with India. There are only a few who have been misled,” he said.In closing, Singh reiterated that India’s increasing power would serve as a beacon of security and prosperity, both for the nation and the broader global community.

Defence Minister Rajnath Singh stated that AMCA places India among the select few nations with the technological edge to develop fifth-gen fighter jets

At the Confederation of Indian Industry (CII) Annual Business Summit 2025, Defence Minister Rajnath Singh took the stage to unveil significant strides in India’s defence sector, with particular emphasis on the country’s growing self-reliance under the ‘Make in India’ initiative. The highlight of the minister’s speech was the government’s approval for the Advanced Medium Combat Aircraft (AMCA) project, a critical step in advancing India’s capabilities in the fifth-generation fighter aircraft domain. Singh hailed the AMCA as a “milestone”, stressing that it places India among the select few nations with the technological edge to develop fifth-gen fighter jets. The project, which will see the creation of five prototypes, is set to undergo series production, with the government-run Hindustan Aeronautics Limited (HAL) joining forces with private sector companies in a collaborative effort. The inclusion of the private sector for the first time in such a large-scale defence project highlights a new phase in India’s defence manufacturing ecosystem. Singh made it clear that both public and private firms would compete to bring this advanced fighter to fruition, with HAL no longer being the default producer. The AMCA, expected to roll out its first prototype by 2028-29, will be powered by the indigenous General Electric F-414 engine. It will feature advanced technologies like an internal weapons bay and diverterless supersonic intake, developed indigenously, marking a new era of technological autonomy for India. With China and Pakistan already deploying fifth-gen aircraft, the AMCA project is critical for India to maintain its technological edge and ensure security along its borders. India’s rising economic might Beyond defence, Singh also highlighted India’s economic achievements, noting that the country had ascended to become the world’s fourth-largest economy under Prime Minister Narendra Modi’s leadership. Singh pointed to India’s growing economic might, with the prospect of becoming the third-largest global economy soon, as a sign of India’s increasing influence on the world stage. At the same time, India’s defence sector has witnessed a remarkable transformation. Singh reported that the country’s defence production has more than tripled over the past decade, rising from ₹43,000 crore ($5.03 billion) to ₹1,46,000 crore ($17.08 billion), with a significant contribution from the private sector. Defence exports have surged, crossing ₹24,000 crore ($2.8 billion), with Indian-made weapons and systems now reaching 100 countries. “The involvement of over 16,000 MSMEs in the defence sector is strengthening our self-reliance and providing employment to millions,” Singh stated, highlighting how India’s burgeoning defence manufacturing sector is both an economic and strategic asset. Additionally, India’s rising capabilities in artificial intelligence, cyber defence, and space-based security were acknowledged as critical areas in the modernisation of India’s armed forces. Singh’s comments underscored the evolving strategic and economic landscape of India, wherein the dual pillars of military self-sufficiency and economic strength are becoming increasingly intertwined. As the country continues its growth trajectory, both on the economic front and in its security capabilities, Singh emphasised that India must ensure its defence industry aligns with national interests, positioning itself as a hub for advanced technologies in the years to come. Reaffirming India’s sovereignty over PoK, Singh also said, “We believe that people living in PoK will, sooner or later, voluntarily reunite with India.” “Prime Minister Narendra Modi-led government is committed to its resolve of Ek Bharat Shreshtha Bharat. Most of the people in PoK have a deep connection with India. There are only a few who have been misled,” he said. In closing, Singh reiterated that India’s increasing power would serve as a beacon of security and prosperity, both for the nation and the broader global community.

Defence Minister Rajnath Singh stated that AMCA places India among the select few nations with the technological edge to develop fifth-gen fighter jets.

Approval of AMCA project is a milestone in India’s defence capability building: Rajnath Singh

In a landmark ruling that could reshape global trade dynamics, the United States Court of International Trade has declared President Donald Trump’s reciprocal tariff regime as illegal, according to a report by Bloomberg.&nbsp;&nbsp;The decision comes at a crucial moment in India-US trade negotiations, with Indian officials seeing it as an opportunity to reassess concessions made under pressure during the Trump era.&nbsp;India and the US are now reportedly working to conclude an interim trade deal before June 25, as reciprocal tariffs imposed under Trump’s 2025 executive order remain paused until July 9. This gives negotiators a narrow window to finalise a mutually agreeable framework.<h2>What did the US court say?</h2>On May 28 (May 29 IST), the US Court of International Trade ruled that Trump’s reciprocal tariffs, including the 10% baseline and additional 26% duty on Indian goods,&nbsp;lacked legal justification under the International Emergency Economic Powers Act (IEEPA), according to Bloomberg.&nbsp;The court concluded that trade deficits did not constitute the “unusual and extraordinary threat” required to invoke emergency powers. In its judgement, the court said, “IEEPA does not authorise any of the Worldwide, Retaliatory, or Trafficking Tariff Orders. The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs", as quoted by Bloomberg.&nbsp;&nbsp;The ruling is currently under appeal, but it temporarily undermines Washington’s leverage,&nbsp;especially in trade talks with strategic partners like India.<h2>How will it affect India-US trade talks?</h2>The ruling has reportedly shifted the momentum in India’s favour, at least temporarily. With the July 9 deadline fast approaching, Indian negotiators find themselves with more room to demand balanced terms.&nbsp;Ajay Srivastava, co-founder of the Global Trade Research Initiative (GTRI), said the judgment&nbsp;effectively dismantles the legal foundation of Trump-era tariff threats. “India must not enter into a one-sided deal based on illegal pressure tactics. With the Trump tariffs standing on shaky legal ground, India must pause and reassess its negotiation strategy before committing to an FTA that could disproportionately favour US interests,” Srivastava told ANI.&nbsp;During earlier negotiations, Washington reportedly pushed for expansive market access in Indian sectors such as agriculture, automobiles, and government procurement, while offering limited trade concessions in return. This imbalance, experts argue, should now be revisited.<h2>India-US interim trade deal likely before June 25</h2>According to reports, both countries are pushing to finalise a limited trade package ahead of the July 9 tariff expiry. This interim deal is expected to be the first step toward a broader Bilateral Trade Agreement (BTA) and will cover trade in goods, non-tariff barriers, and select services, including digital trade.&nbsp;India is reportedly specifically seeking a full exemption from the 26% reciprocal tariff imposed by Trump’s executive order. While the US Congress must approve any Most Favoured Nation (MFN) tariff reduction, Trump’s reciprocal tariffs were imposed under emergency provisions and can be lifted via a new executive order.&nbsp;Commerce Minister Piyush Goyal, during his recent US visit, held talks with Commerce Secretary Howard Lutnick to provide political direction to the negotiations. A high-level US delegation is reportedly expected to visit India in early June to continue discussions.<h2>What are both countries asking for?</h2>India is reportedly seeking duty concessions for its labour-intensive export sectors, including textiles, gems and jewellery, leather goods, plastics, chemicals, shrimp, bananas, and grapes. The goal is to improve India’s competitiveness in the US market and to reach an ambitious bilateral trade target of $500 billion by 2030, up from the current level of $190 billion.&nbsp;In return, the US is reportedly demanding market access and tariff reductions in sectors such as electric vehicles, wine and dairy, apples and tree nuts, and petrochemical and industrial goods.&nbsp;According to data from the Ministry of Commerce and Industry, bilateral trade rose from $119.72 billion in FY24 to $131.84 billion in FY25, an increase of 10.1 per cent. Indian exports surged 11.6 per cent to $86.51 billion, while imports from the US rose 7.42 per cent to $45.33 billion.&nbsp;This resulted in India’s trade surplus with the US widening to $41.18 billion, up from $35.32 billion a year earlier.<h2>What pressure points remain?</h2>Despite this trade surplus in goods, Trump has repeatedly criticised India’s export-driven approach, ignoring significant American revenues generated from services and intellectual property in India.&nbsp;As reported by Bloomberg, US companies operating in India, from tech giants like Apple and Google to pharma and defence contractors reportedly benefit significantly from Indian market access, data, and human capital.&nbsp;However, the ruling does not impact tariffs imposed through other laws, such as the 25 per cent duty on steel, aluminium and auto parts, still affecting Indian exporters. US Secretary of Commerce Howard Lutnick, in court arguments reported by Reuters, said that without IEEPA, the President lacks fast-acting tools to address trade imbalances and national security threats. He added that alternatives such as Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974 are lengthy and procedurally complex.&nbsp;India’s concessions have not been limited to tariffs. As per the US Trade Representative’s (USTR) 2025 Special 301 Report, the US continues to push India for reforms in data localisation, pharmaceutical patent law (specifically Section 3(d) of India’s Patents Act), and easing regulatory norms for genetically modified crops. The report accuses India of maintaining “high customs duties on IP-intensive products” and inadequate IP enforcement.&nbsp;Yet, New Delhi has so far reportedly resisted attempts at so-called “evergreening”, a practice used by pharmaceutical companies to extend patents by making minor modifications to existing drugs. India remains a critical supplier of affordable generic medicines to the US and developing nations.<h2>What lies ahead?</h2>The US court ruling offers India a rare window to renegotiate terms on more equitable grounds. However, this window may close quickly, especially if the Trump administration’s appeal finds favour in a higher court, possibly the US Supreme Court.&nbsp;For now, India’s Commerce Ministry has not issued an official statement on the judgement. But according to the report, the ruling is being seen as a strategic pause, a critical chance to reassess India’s trade priorities with its largest economic partner. &nbsp; &nbsp; &nbsp; &nbsp;

Business & Economy: This decision is crucial for India-US trade negotiations, as tariffs imposed under Trump 2025 executive order remain paused until July 9.

In a landmark ruling that could reshape global trade dynamics, the United States Court of International Trade has declared President Donald Trump’s reciprocal tariff regime as illegal, according to a report by Bloomberg. The decision comes at a crucial moment in India-US trade negotiations, with Indian officials seeing it as an opportunity to reassess concessions made under pressure during the Trump era. India and the US are now reportedly working to conclude an interim trade deal before June 25, as reciprocal tariffs imposed under Trump’s 2025 executive order remain paused until July 9. This gives negotiators a narrow window to finalise a mutually agreeable framework. What did the US court say? On May 28 (May 29 IST), the US Court of International Trade ruled that Trump’s reciprocal tariffs, including the 10% baseline and additional 26% duty on Indian goods, lacked legal justification under the International Emergency Economic Powers Act (IEEPA), according to Bloomberg. The court concluded that trade deficits did not constitute the “unusual and extraordinary threat” required to invoke emergency powers. In its judgement, the court said, “IEEPA does not authorise any of the Worldwide, Retaliatory, or Trafficking Tariff Orders. The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs", as quoted by Bloomberg. The ruling is currently under appeal, but it temporarily undermines Washington’s leverage, especially in trade talks with strategic partners like India. How will it affect India-US trade talks? The ruling has reportedly shifted the momentum in India’s favour, at least temporarily. With the July 9 deadline fast approaching, Indian negotiators find themselves with more room to demand balanced terms. Ajay Srivastava, co-founder of the Global Trade Research Initiative (GTRI), said the judgment effectively dismantles the legal foundation of Trump-era tariff threats. “India must not enter into a one-sided deal based on illegal pressure tactics. With the Trump tariffs standing on shaky legal ground, India must pause and reassess its negotiation strategy before committing to an FTA that could disproportionately favour US interests,” Srivastava told ANI. During earlier negotiations, Washington reportedly pushed for expansive market access in Indian sectors such as agriculture, automobiles, and government procurement, while offering limited trade concessions in return. This imbalance, experts argue, should now be revisited. India-US interim trade deal likely before June 25 According to reports, both countries are pushing to finalise a limited trade package ahead of the July 9 tariff expiry. This interim deal is expected to be the first step toward a broader Bilateral Trade Agreement (BTA) and will cover trade in goods, non-tariff barriers, and select services, including digital trade. India is reportedly specifically seeking a full exemption from the 26% reciprocal tariff imposed by Trump’s executive order. While the US Congress must approve any Most Favoured Nation (MFN) tariff reduction, Trump’s reciprocal tariffs were imposed under emergency provisions and can be lifted via a new executive order. Commerce Minister Piyush Goyal, during his recent US visit, held talks with Commerce Secretary Howard Lutnick to provide political direction to the negotiations. A high-level US delegation is reportedly expected to visit India in early June to continue discussions. What are both countries asking for? India is reportedly seeking duty concessions for its labour-intensive export sectors, including textiles, gems and jewellery, leather goods, plastics, chemicals, shrimp, bananas, and grapes. The goal is to improve India’s competitiveness in the US market and to reach an ambitious bilateral trade target of $500 billion by 2030, up from the current level of $190 billion. In return, the US is reportedly demanding market access and tariff reductions in sectors such as electric vehicles, wine and dairy, apples and tree nuts, and petrochemical and industrial goods. According to data from the Ministry of Commerce and Industry, bilateral trade rose from $119.72 billion in FY24 to $131.84 billion in FY25, an increase of 10.1 per cent. Indian exports surged 11.6 per cent to $86.51 billion, while imports from the US rose 7.42 per cent to $45.33 billion. This resulted in India’s trade surplus with the US widening to $41.18 billion, up from $35.32 billion a year earlier. What pressure points remain? Despite this trade surplus in goods, Trump has repeatedly criticised India’s export-driven approach, ignoring significant American revenues generated from services and intellectual property in India. As reported by Bloomberg, US companies operating in India, from tech giants like Apple and Google to pharma and defence contractors reportedly benefit significantly from Indian market access, data, and human capital. However, the ruling does not impact tariffs imposed through other laws, such as the 25 per cent duty on steel, aluminium and auto parts, still affecting Indian exporters. US Secretary of Commerce Howard Lutnick, in court arguments reported by Reuters, said that without IEEPA, the President lacks fast-acting tools to address trade imbalances and national security threats. He added that alternatives such as Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974 are lengthy and procedurally complex. India’s concessions have not been limited to tariffs. As per the US Trade Representative’s (USTR) 2025 Special 301 Report, the US continues to push India for reforms in data localisation, pharmaceutical patent law (specifically Section 3(d) of India’s Patents Act), and easing regulatory norms for genetically modified crops. The report accuses India of maintaining “high customs duties on IP-intensive products” and inadequate IP enforcement. Yet, New Delhi has so far reportedly resisted attempts at so-called “evergreening”, a practice used by pharmaceutical companies to extend patents by making minor modifications to existing drugs. India remains a critical supplier of affordable generic medicines to the US and developing nations. What lies ahead? The US court ruling offers India a rare window to renegotiate terms on more equitable grounds. However, this window may close quickly, especially if the Trump administration’s appeal finds favour in a higher court, possibly the US Supreme Court. For now, India’s Commerce Ministry has not issued an official statement on the judgement. But according to the report, the ruling is being seen as a strategic pause, a critical chance to reassess India’s trade priorities with its largest economic partner.

The US Court of International Trade has declared Trump's reciprocal tariff regime illegal, potentially reshaping global trade dynamics.&nbsp;

US court rules Trump tariff illegal: How it will impact India-US trade talks?

Japan’s national debt, which has long been at the centre of the country’s economic policy, is now straining under its own weight. The government’s borrowing has reached unprecedented levels, with outstanding debt surpassing $9 trillion—more than double the size of the nation's GDP.This vast debt load, accumulated over decades of low interest rates and heavy government spending, is now starting to show signs of fragility, as the Bank of Japan gradually phases out its ultra-low interest rate policy. With interest rates climbing, the cost of servicing Japan’s debt is poised to rise, triggering alarm bells in both domestic and global financial markets.Japan’s recent bond market struggles reflect growing concerns about its fiscal health. A bond auction for 40-year government bonds last week met the weakest demand in almost a year, exacerbating fears over the country’s financial future. Yields on long-term government bonds have surged, and analysts are watching these movements closely, fearing that rising borrowing costs could further undermine the country’s already strained fiscal position.Japan's 40-year bond yield recently hit 3.13 per cent, its highest level in two decades. A failed bond auction on May 20, where the bid-to-cover ratio plummeted to 2.50 from 2.96, only added to investor unease.The situation is further complicated by Japan’s demographic challenges. The country’s ageing population has led to an explosion in social security spending, including pensions and healthcare. As the country’s population continues to shrink and age—over 30 per cent of its population will be 65 or older by 2024—government expenditures are expected to rise sharply, placing additional pressure on an already stretched budget.&nbsp;Rising deficits and political strain&nbsp;Japan’s national debt has ballooned to an unsustainable 195 per cent of GDP in 2023, the highest among major advanced economies. Much of this debt stems from persistent fiscal deficits, as government spending consistently outpaces revenue.In particular, Japan's social security deficit has been a key driver of the country’s fiscal imbalance. Despite efforts at fiscal consolidation, including tax hikes in 2014 and 2019, the country has struggled to rein in its deficits. Financing the growing debt has largely relied on domestic bond issuance, but with bond yields rising, this approach is becoming less viable.Prime Minister Shigeru Ishiba faces mounting political pressure as the country’s fiscal outlook grows more precarious. With upper house elections approaching, Ishiba is under increasing pressure from voters struggling with inflation and the economic impact of tariffs imposed by the United States.Populist demands for tax cuts are growing louder, even as Ishiba cautions against the dangers of higher interest rates. The prospect of a fiscal crisis similar to that of Greece’s 2009 debt debacle is being raised by analysts, further intensifying concerns about Japan’s financial future.&nbsp;Rising concern&nbsp;Japan's fiscal troubles are not just a domestic issue. As one of the world’s largest economies, Japan’s bond market plays a significant role in global financial markets. Its recent bond market volatility, characterised by sharp increases in long-term bond yields, has had ripple effects in global markets, particularly in the US Treasury market. Japan is the largest foreign holder of US government debt, and any significant shift in its bond market could reverberate across global financial systems.A sharp rise in Japanese bond yields could also divert capital back into Japan, as investors may seek higher returns on its bonds. This could affect other major economies by driving up borrowing costs worldwide. With Japan’s economic growth stagnant and its demographic challenges deepening, many economists believe that Japan must implement serious fiscal reforms to address its unsustainable debt trajectory.While Japan’s fiscal problems are not expected to lead to an immediate collapse, the country’s fiscal trajectory is unsustainable in the long term. Experts argue that Japan must begin serious fiscal consolidation to avoid a full-blown crisis. Ageing demographics, rising social security costs, and now higher interest rates mean the country faces a shrinking window of opportunity to enact meaningful fiscal reforms.For now, Japan’s fiscal woes remain a major concern for policymakers and investors alike. With rising bond yields, a growing debt burden, and an uncertain political landscape, Japan’s economic future hangs in the balance.

The vast debt load, accumulated over decades of low interest rates and heavy government spending, is now starting to show signs of fragility, as the Bank of Japan gradually phases out its ultra-low interest rate policy.

Japan’s national debt, which has long been at the centre of the country’s economic policy, is now straining under its own weight. The government’s borrowing has reached unprecedented levels, with outstanding debt surpassing $9 trillion—more than double the size of the nation's GDP. This vast debt load, accumulated over decades of low interest rates and heavy government spending, is now starting to show signs of fragility, as the Bank of Japan gradually phases out its ultra-low interest rate policy. With interest rates climbing, the cost of servicing Japan’s debt is poised to rise, triggering alarm bells in both domestic and global financial markets. Japan’s recent bond market struggles reflect growing concerns about its fiscal health. A bond auction for 40-year government bonds last week met the weakest demand in almost a year, exacerbating fears over the country’s financial future. Yields on long-term government bonds have surged, and analysts are watching these movements closely, fearing that rising borrowing costs could further undermine the country’s already strained fiscal position. Japan's 40-year bond yield recently hit 3.13 per cent, its highest level in two decades. A failed bond auction on May 20, where the bid-to-cover ratio plummeted to 2.50 from 2.96, only added to investor unease. The situation is further complicated by Japan’s demographic challenges. The country’s ageing population has led to an explosion in social security spending, including pensions and healthcare. As the country’s population continues to shrink and age—over 30 per cent of its population will be 65 or older by 2024—government expenditures are expected to rise sharply, placing additional pressure on an already stretched budget. Rising deficits and political strain Japan’s national debt has ballooned to an unsustainable 195 per cent of GDP in 2023, the highest among major advanced economies. Much of this debt stems from persistent fiscal deficits, as government spending consistently outpaces revenue. In particular, Japan's social security deficit has been a key driver of the country’s fiscal imbalance. Despite efforts at fiscal consolidation, including tax hikes in 2014 and 2019, the country has struggled to rein in its deficits. Financing the growing debt has largely relied on domestic bond issuance, but with bond yields rising, this approach is becoming less viable. Prime Minister Shigeru Ishiba faces mounting political pressure as the country’s fiscal outlook grows more precarious. With upper house elections approaching, Ishiba is under increasing pressure from voters struggling with inflation and the economic impact of tariffs imposed by the United States. Populist demands for tax cuts are growing louder, even as Ishiba cautions against the dangers of higher interest rates. The prospect of a fiscal crisis similar to that of Greece’s 2009 debt debacle is being raised by analysts, further intensifying concerns about Japan’s financial future. Rising concern Japan's fiscal troubles are not just a domestic issue. As one of the world’s largest economies, Japan’s bond market plays a significant role in global financial markets. Its recent bond market volatility, characterised by sharp increases in long-term bond yields, has had ripple effects in global markets, particularly in the US Treasury market. Japan is the largest foreign holder of US government debt, and any significant shift in its bond market could reverberate across global financial systems. A sharp rise in Japanese bond yields could also divert capital back into Japan, as investors may seek higher returns on its bonds. This could affect other major economies by driving up borrowing costs worldwide. With Japan’s economic growth stagnant and its demographic challenges deepening, many economists believe that Japan must implement serious fiscal reforms to address its unsustainable debt trajectory. While Japan’s fiscal problems are not expected to lead to an immediate collapse, the country’s fiscal trajectory is unsustainable in the long term. Experts argue that Japan must begin serious fiscal consolidation to avoid a full-blown crisis. Ageing demographics, rising social security costs, and now higher interest rates mean the country faces a shrinking window of opportunity to enact meaningful fiscal reforms. For now, Japan’s fiscal woes remain a major concern for policymakers and investors alike. With rising bond yields, a growing debt burden, and an uncertain political landscape, Japan’s economic future hangs in the balance.

The vast debt load, accumulated over decades of low interest rates and heavy government spending, is now starting to show signs of fragility, as the Bank of Japan gradually phases out its ultra-low interest rate policy.

Japan's fiscal health suffering as debt reaches unsustainable levels

Vietnam’s electric vehicle manufacturer VinFast Auto Ltd. is reportedly in talks to raise up to $200 million (₹1,660 crore) from Indian state-owned banks. According to Bloomberg, VinFast is preparing to enter the Indian market, the world’s third-largest car market.&nbsp;Central Bank of India and Union Bank of India are among the lenders currently engaged in discussions with VinFast for the loan, as quoted by Bloomberg. This would be the company’s first time tapping Indian financial institutions.&nbsp;The loan, part of VinFast’s initial $500 million investment plan for India, could be structured either in Indian rupees or as foreign currency through the external commercial borrowing (ECB) route. The terms are yet to be finalised and may change, the report added.&nbsp;A VinFast spokesperson told Bloomberg, “VinFast is currently in discussions with potential partners in India, including financial institutions, to support its operations in the market.” Central Bank of India and Union Bank of India have not responded to emailed queries, as reported by Bloomberg.<h2>VinFast prepares to launch Tamil Nadu plant</h2>VinFast has reportedly set June 30 as the launch date for its new EV manufacturing facility in Tamil Nadu. Ahead of the rollout, the company is finalising its local distribution network.&nbsp;Bookings for the VF6 and VF7 models are reportedly expected to begin in the coming weeks, while its compact EV, the VF3, will open for bookings in 2026.&nbsp;As per Bloomberg, pricing details for the Indian&nbsp;market have not yet been disclosed, but VinFast is expected to position its vehicles competitively in the budget-conscious segment.&nbsp;This strategic move into India comes as VinFast pulls back from its earlier ambitions in North America and Europe, citing high logistics and operational costs.&nbsp;According to Bloomberg, VinFast’s founder and CEO Pham Nhat Vuong told shareholders of parent company Vingroup JSC in April that the company will now focus on Vietnam and key Asian markets, including India, Indonesia, and the Philippines.&nbsp;VinFast also expects to open its Indonesia plant by October 2025 and is targeting deliveries of more than 200,000 vehicles in Vietnam this year.&nbsp;Vuong, who has already infused nearly $1 billion of his wealth into the company since 2023, has pledged another $2 billion through 2026 to fund global expansion. Vingroup has further committed up to $1.4 billion in loans to support the automaker’s operations, as reported by Bloomberg.<h2>India emerges as an EV magnet for global automakers</h2>VinFast is the latest in a growing wave of global EV manufacturers turning to India for expansion. Tesla is currently exploring the Indian market and is reportedly in talks with the governments of Gujarat and Maharashtra to set up a plant, according to Reuters. Meanwhile, Chinese automaker BYD and South Korea’s Hyundai are also reportedly pushing deeper into India’s EV space.&nbsp;India’s electric vehicle market is expanding rapidly. According to the Federation of Automobile Dealers Associations (FADA), EV sales in India rose 49 per cent year-on-year in FY24, crossing 1.5 million units. Electric vehicles now account for 6.4 per cent of total vehicle sales in the country.&nbsp;Government incentives such as production-linked incentive (PLI) schemes, reduced import duties for EVs, and a national target of achieving 30 per cent EV penetration by 2030 are making India an increasingly attractive destination for electric mobility investments.<h2>VinFast’s India strategy signals shift in global priorities</h2>VinFast’s entry into India reportedly underscores its strategic pivot away from saturated and cost-heavy Western&nbsp;markets toward high-growth, price-sensitive regions in Asia.&nbsp;Backed by strong financial commitments from both Vuong and Vingroup, the company is accelerating efforts to carve a niche in India’s evolving EV landscape.&nbsp;As competition intensifies and policy tailwinds continue to boost adoption, India is fast becoming a battleground for global EV players, and VinFast wants in.

Business & Economy: This is the company's first time tapping Indian financial institutions for a loan, part of its $500 million investment plan for India. The terms are yet to be finalized.

Vietnam’s electric vehicle manufacturer VinFast Auto Ltd. is reportedly in talks to raise up to $200 million (₹1,660 crore) from Indian state-owned banks. According to Bloomberg, VinFast is preparing to enter the Indian market, the world’s third-largest car market. Central Bank of India and Union Bank of India are among the lenders currently engaged in discussions with VinFast for the loan, as quoted by Bloomberg. This would be the company’s first time tapping Indian financial institutions. The loan, part of VinFast’s initial $500 million investment plan for India, could be structured either in Indian rupees or as foreign currency through the external commercial borrowing (ECB) route. The terms are yet to be finalised and may change, the report added. A VinFast spokesperson told Bloomberg, “VinFast is currently in discussions with potential partners in India, including financial institutions, to support its operations in the market.” Central Bank of India and Union Bank of India have not responded to emailed queries, as reported by Bloomberg. VinFast prepares to launch Tamil Nadu plant VinFast has reportedly set June 30 as the launch date for its new EV manufacturing facility in Tamil Nadu. Ahead of the rollout, the company is finalising its local distribution network. Bookings for the VF6 and VF7 models are reportedly expected to begin in the coming weeks, while its compact EV, the VF3, will open for bookings in 2026. As per Bloomberg, pricing details for the Indian market have not yet been disclosed, but VinFast is expected to position its vehicles competitively in the budget-conscious segment. This strategic move into India comes as VinFast pulls back from its earlier ambitions in North America and Europe, citing high logistics and operational costs. According to Bloomberg, VinFast’s founder and CEO Pham Nhat Vuong told shareholders of parent company Vingroup JSC in April that the company will now focus on Vietnam and key Asian markets, including India, Indonesia, and the Philippines. VinFast also expects to open its Indonesia plant by October 2025 and is targeting deliveries of more than 200,000 vehicles in Vietnam this year. Vuong, who has already infused nearly $1 billion of his wealth into the company since 2023, has pledged another $2 billion through 2026 to fund global expansion. Vingroup has further committed up to $1.4 billion in loans to support the automaker’s operations, as reported by Bloomberg. India emerges as an EV magnet for global automakers VinFast is the latest in a growing wave of global EV manufacturers turning to India for expansion. Tesla is currently exploring the Indian market and is reportedly in talks with the governments of Gujarat and Maharashtra to set up a plant, according to Reuters. Meanwhile, Chinese automaker BYD and South Korea’s Hyundai are also reportedly pushing deeper into India’s EV space. India’s electric vehicle market is expanding rapidly. According to the Federation of Automobile Dealers Associations (FADA), EV sales in India rose 49 per cent year-on-year in FY24, crossing 1.5 million units. Electric vehicles now account for 6.4 per cent of total vehicle sales in the country. Government incentives such as production-linked incentive (PLI) schemes, reduced import duties for EVs, and a national target of achieving 30 per cent EV penetration by 2030 are making India an increasingly attractive destination for electric mobility investments. VinFast’s India strategy signals shift in global priorities VinFast’s entry into India reportedly underscores its strategic pivot away from saturated and cost-heavy Western markets toward high-growth, price-sensitive regions in Asia. Backed by strong financial commitments from both Vuong and Vingroup, the company is accelerating efforts to carve a niche in India’s evolving EV landscape. As competition intensifies and policy tailwinds continue to boost adoption, India is fast becoming a battleground for global EV players, and VinFast wants in.

Vietnam's electric vehicle manufacturer, VinFast Auto Ltd., is in talks to raise up to $200 million from Indian state-owned banks, including Central Bank of India and Union Bank of India.&nbsp;

VinFast seeks $200 million loan from Indian banks as it gears up for EV debut

In a financial year marked by volatile global headwinds, the Reserve Bank of India (RBI) delivered a record ₹2.69 lakh crore ($32.28 billion) surplus to the government, by 27.3 per cent from the previous year’s ₹2.11 lakh crore ($25.32 billion).&nbsp;According to the RBI Annual Report for FY2024–25, this sharp jump in net income was driven by higher foreign exchange transaction gains, interest from foreign securities, and a cautious hike in its contingency risk buffer.&nbsp;While this windfall gives the Centre significant fiscal breathing space for its capital spending and welfare programs, the report also outlines a bold technology-forward vision for FY26 anchored around digital currency pilots, AI deployment, and cross-border innovation.<h2>Stronger balance sheet, bigger dividend</h2>As per the annual report, the central bank’s net income surged 27.3 per cent year-on-year to ₹2.69 lakh crore ($32.28 billion) in FY25, up from ₹2.11 lakh crore ($25.32 billion) the previous year. This includes gains of ₹11.1 lakh crore ($133.2 billion) from foreign exchange transactions, and ₹9.7 lakh crore ($116.4 billion) in interest income from foreign securities.&nbsp;The RBI’s balance sheet expanded 8.2 per cent to ₹76.25 lakh crore ($915 billion), with foreign assets accounting for over 74 per cent of the total. Notably, the central bank’s gold holdings rose by 57.5 metric tonnes to 879.6 metric tonnes as of March 2025.&nbsp;A significant portion of the income of ₹2.68 lakh crore ($32.16 billion) has already been transferred to the central government as surplus, a move expected to ease fiscal pressures, support capital spending, and inject liquidity into the banking system by early July, according to economists cited in the report.&nbsp;The report also highlights that the Contingency Risk Buffer (CRB), which helps cushion against economic shocks was maintained at 6.5 per cent, the same level as FY24.&nbsp;Inflation, growth, and monetary policy: RBI’s balancing actThe RBI’s latest report offers a cautiously optimistic view of the Indian economy. According to the central bank, headline inflation is likely to converge to the 4 per cent target over the next 12 months, thanks to a favourable mix of macroeconomic conditions.&nbsp;These include easing global supply chain pressures, softening of international commodity prices, and above-normal rainfall boosting agricultural output.&nbsp;At the same time, GDP growth for FY26 is projected at 6.5 per cent, with the momentum driven by private consumption, healthy corporate and banking balance sheets, and the government’s continued focus on capital expenditure.&nbsp;In response to moderating inflation and subdued economic momentum, the RBI has already cut the policy repo rate by 50 basis points since February, and adopted a ‘growth-supportive’ accommodative stance in April.&nbsp;However, the path forward is not without risks. The RBI flagged a range of external headwinds, rising protectionism, geopolitical conflicts, and volatile financial markets that could threaten both inflation and growth targets. Of particular concern is the return of US tariffs under President Donald Trump, which have added uncertainty to global trade flows and emerging market stability.&nbsp;According to the report, “While the outlook remains promising, downside risks to growth and upside risks to inflation persist due to evolving global dynamics.”<h2>Digital rupee, FX platform, and CBDC pilots: What’s next for RBI?</h2>The RBI is making it clear that India’s digital financial future is no longer experimental, it’s strategic.&nbsp;According to the report, the RBI will expand the pilots for central bank digital currency (CBDC) in both retail (e₹-Retail) and wholesale (e₹-Wholesale) segments. Building on groundwork laid over the past two years, the central bank now plans to test cross-border CBDC transactions, both bilateral and multilateral to make global payments faster, more transparent, and more secure.&nbsp;In addition, the RBI will link its FX-Retail platform with Bharat Connect, a move aimed at democratising access to forex markets for small businesses and individual users. This is particularly significant as India’s foreign exchange reserves peaked at $704 billion in September 2024, and the RBI was the top net seller of forex among Asian central banks in January 2025, according to estimates from Nomura and DBS Bank.&nbsp;The digital push doesn’t end there. The RBI will also roll out new CBDC use cases, such as B2B payments under the Unified Ledger Interface (ULI), and scale up Milehunter.ai™, its AI-driven analytics platform. To accompany this digital acceleration, the central bank will also develop a framework for the responsible and ethical use of AI in the financial sector.&nbsp;These pilots and platforms, the report notes, are designed to overcome persistent inefficiencies in the current system, especially those related to turnaround time, traceability, and cross-border transaction costs.<h2>Bank fraud amount triples despite drop in cases</h2>One of the more concerning takeaways from the report is the sharp rise in the value of bank frauds.&nbsp;While the total number of fraud cases declined by 34 per cent to 23,953 in FY25, the value of frauds tripled to ₹36,014 crore ($432.17 million), up from roughly ₹12,000 crore ($144 million) in FY24.&nbsp;According to the RBI annual report, this spike was largely due to the reclassification of 122 legacy fraud cases worth ₹18,674 crore ($224.08 million), after a March 2023 Supreme Court ruling mandated re-examination.&nbsp;Private sector banks reported the highest number of fraud incidents at 14,233 cases, accounting for 59.4 per cent of total frauds. But in terms of value, state-owned banks bore the brunt, accounting for ₹25,667 crore ($307.99 million) (71.3 per cent of total fraud value) compared to ₹10,088 crore ($121.05 million) by private lenders.&nbsp;Most of these frauds occurred in two areas:• Digital payments (cards/internet): 13,516 cases, ₹520 crore ($6.24 million)• Loan/advances segment: 7,950 cases, ₹33,148 crore ($398 million)&nbsp;The RBI noted that while digital frauds dominate in private banks, loan-related frauds remain concentrated in public sector banks, raising concerns about credit risk monitoring and recovery.&nbsp;

Business & Economy: One of the more concerning takeaways from the RBI report is the sharp rise in the value of bank frauds.

In a financial year marked by volatile global headwinds, the Reserve Bank of India (RBI) delivered a record ₹2.69 lakh crore ($32.28 billion) surplus to the government, by 27.3 per cent from the previous year’s ₹2.11 lakh crore ($25.32 billion). According to the RBI Annual Report for FY2024–25, this sharp jump in net income was driven by higher foreign exchange transaction gains, interest from foreign securities, and a cautious hike in its contingency risk buffer. While this windfall gives the Centre significant fiscal breathing space for its capital spending and welfare programs, the report also outlines a bold technology-forward vision for FY26 anchored around digital currency pilots, AI deployment, and cross-border innovation. Stronger balance sheet, bigger dividend As per the annual report, the central bank’s net income surged 27.3 per cent year-on-year to ₹2.69 lakh crore ($32.28 billion) in FY25, up from ₹2.11 lakh crore ($25.32 billion) the previous year. This includes gains of ₹11.1 lakh crore ($133.2 billion) from foreign exchange transactions, and ₹9.7 lakh crore ($116.4 billion) in interest income from foreign securities. The RBI’s balance sheet expanded 8.2 per cent to ₹76.25 lakh crore ($915 billion), with foreign assets accounting for over 74 per cent of the total. Notably, the central bank’s gold holdings rose by 57.5 metric tonnes to 879.6 metric tonnes as of March 2025. A significant portion of the income of ₹2.68 lakh crore ($32.16 billion) has already been transferred to the central government as surplus, a move expected to ease fiscal pressures, support capital spending, and inject liquidity into the banking system by early July, according to economists cited in the report. The report also highlights that the Contingency Risk Buffer (CRB), which helps cushion against economic shocks was maintained at 6.5 per cent, the same level as FY24. Inflation, growth, and monetary policy: RBI’s balancing act The RBI’s latest report offers a cautiously optimistic view of the Indian economy. According to the central bank, headline inflation is likely to converge to the 4 per cent target over the next 12 months, thanks to a favourable mix of macroeconomic conditions. These include easing global supply chain pressures, softening of international commodity prices, and above-normal rainfall boosting agricultural output. At the same time, GDP growth for FY26 is projected at 6.5 per cent, with the momentum driven by private consumption, healthy corporate and banking balance sheets, and the government’s continued focus on capital expenditure. In response to moderating inflation and subdued economic momentum, the RBI has already cut the policy repo rate by 50 basis points since February, and adopted a ‘growth-supportive’ accommodative stance in April. However, the path forward is not without risks. The RBI flagged a range of external headwinds, rising protectionism, geopolitical conflicts, and volatile financial markets that could threaten both inflation and growth targets. Of particular concern is the return of US tariffs under President Donald Trump, which have added uncertainty to global trade flows and emerging market stability. According to the report, “While the outlook remains promising, downside risks to growth and upside risks to inflation persist due to evolving global dynamics.” Digital rupee, FX platform, and CBDC pilots: What’s next for RBI? The RBI is making it clear that India’s digital financial future is no longer experimental, it’s strategic. According to the report, the RBI will expand the pilots for central bank digital currency (CBDC) in both retail (e₹-Retail) and wholesale (e₹-Wholesale) segments. Building on groundwork laid over the past two years, the central bank now plans to test cross-border CBDC transactions, both bilateral and multilateral to make global payments faster, more transparent, and more secure. In addition, the RBI will link its FX-Retail platform with Bharat Connect, a move aimed at democratising access to forex markets for small businesses and individual users. This is particularly significant as India’s foreign exchange reserves peaked at $704 billion in September 2024, and the RBI was the top net seller of forex among Asian central banks in January 2025, according to estimates from Nomura and DBS Bank. The digital push doesn’t end there. The RBI will also roll out new CBDC use cases, such as B2B payments under the Unified Ledger Interface (ULI), and scale up Milehunter.ai™, its AI-driven analytics platform. To accompany this digital acceleration, the central bank will also develop a framework for the responsible and ethical use of AI in the financial sector. These pilots and platforms, the report notes, are designed to overcome persistent inefficiencies in the current system, especially those related to turnaround time, traceability, and cross-border transaction costs. Bank fraud amount triples despite drop in cases One of the more concerning takeaways from the report is the sharp rise in the value of bank frauds. While the total number of fraud cases declined by 34 per cent to 23,953 in FY25, the value of frauds tripled to ₹36,014 crore ($432.17 million), up from roughly ₹12,000 crore ($144 million) in FY24. According to the RBI annual report, this spike was largely due to the reclassification of 122 legacy fraud cases worth ₹18,674 crore ($224.08 million), after a March 2023 Supreme Court ruling mandated re-examination. Private sector banks reported the highest number of fraud incidents at 14,233 cases, accounting for 59.4 per cent of total frauds. But in terms of value, state-owned banks bore the brunt, accounting for ₹25,667 crore ($307.99 million) (71.3 per cent of total fraud value) compared to ₹10,088 crore ($121.05 million) by private lenders. Most of these frauds occurred in two areas: • Digital payments (cards/internet): 13,516 cases, ₹520 crore ($6.24 million) • Loan/advances segment: 7,950 cases, ₹33,148 crore ($398 million) The RBI noted that while digital frauds dominate in private banks, loan-related frauds remain concentrated in public sector banks, raising concerns about credit risk monitoring and recovery.

Amid global tension, the central bank of India's annual report for FY24- 25 delivered a record ₹2.69 lakh crore surplus to the government, by 27.3 per cent from the previous year’s ₹2.11 lakh crore.&nbsp;

From ₹2.69 lakh cr surplus to digital rupee pilots: Here's what RBI’s FY25 annual report outlines