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India has rewritten the global economic leaderboard. With a GDP of $4 trillion, the country has overtaken Japan to become the world’s fourth-largest economy, according to International Monetary Fund (IMF) data cited by NITI Aayog CEO BVR Subrahmanyam.&nbsp; &nbsp;The announcement marks a pivotal moment in India’s growth story one driven by structural reforms, demographic strength, and resilient consumption.<h2>What NITI Aayog said</h2>According to a report by ANI, NITI Aayog CEO BVR Subrahmanyam confirmed that India has now overtaken Japan to become the world’s fourth-largest economy.&nbsp;“We are a $4 trillion economy as I speak… and this is not my data. This is IMF data. India today is larger than Japan,” Subrahmanyam told ANI. &nbsp;The IMF’s April World Economic Outlook estimates India’s nominal GDP will reach $4.187 trillion in FY2026, narrowly surpassing Japan’s projection of $4.186 trillion. India held the fifth position globally until 2024.&nbsp;Looking ahead, Subrahmanyam told ANI that India is well-positioned to overtake Germany, “It’s only the United States, China, and Germany which are larger… If we stick to what is being planned, it’s a matter of another two, two and a half to three years, we would become the third-largest economy.” &nbsp;He added that India’s economic trajectory is backed by its young and expanding population. “India is at a takeoff stage… and we are blessed with this demographic window for the next 20 to 25 years. The Prime Minister has already asked states to draft vision documents and this planning is showing visible results,” Subrahmanyam said, as quoted by ANI.<h2>India’s rise&nbsp;comes amid global trade tensions</h2>India’s economic leap comes at a time when global trade tensions are high, and the country is actively negotiating across multiple trade corridors. Post Donald Trump’s returned to Oval office, the US imposed up to 26 per cent tariffs on specific Indian goods. These remain in effect, with India now seeking a full exemption as part of bilateral negotiations.&nbsp; The first phase of a restructured trade agreement is anticipated by July 2025, according to recent reports. Dialogue between New Delhi and Washington has intensified. India is pushing for tariff relaxations in sectors like agriculture and textiles, while the US is keen on securing digital trade guarantees and enhanced data access. India has also finalised a landmark Free Trade Agreement (FTA) with the United Kingdom. Under the pact, tariffs on 90 per cent of British exports to India will be reduced, with 85 per cent of goods becoming fully duty-free over the next 10 years, an ambitious effort to expand India’s trade network beyond traditional partners. Despite geopolitical uncertainties and tightening global credit conditions, the IMF projects India’s economy to grow by 6.2 per cent in 2025 and 6.3 per cent in 2026.&nbsp; These figures remain well above the projected global growth of 2.8 per cent and 3.0 per cent, reinforcing India’s position as the fastest-growing major economy. India’s journey from the fifth largest to the fourth-largest economy reflects both economic resilience and strategic execution.&nbsp; As trade dynamics shift and global economies grapple with uncertainty, India’s sustained growth, favourable demographics, and policy clarity position it to potentially overtake Germany and enter the top three global economies soon.&nbsp;

Business & Economy: The announcement marks a pivotal moment in India’s growth story one driven by structural reforms, demographic strength, and resilient consumption.

India has rewritten the global economic leaderboard. With a GDP of $4 trillion, the country has overtaken Japan to become the world’s fourth-largest economy, according to International Monetary Fund (IMF) data cited by NITI Aayog CEO BVR Subrahmanyam. The announcement marks a pivotal moment in India’s growth story one driven by structural reforms, demographic strength, and resilient consumption. What NITI Aayog said According to a report by ANI, NITI Aayog CEO BVR Subrahmanyam confirmed that India has now overtaken Japan to become the world’s fourth-largest economy. “We are a $4 trillion economy as I speak… and this is not my data. This is IMF data. India today is larger than Japan,” Subrahmanyam told ANI. The IMF’s April World Economic Outlook estimates India’s nominal GDP will reach $4.187 trillion in FY2026, narrowly surpassing Japan’s projection of $4.186 trillion. India held the fifth position globally until 2024. Looking ahead, Subrahmanyam told ANI that India is well-positioned to overtake Germany, “It’s only the United States, China, and Germany which are larger… If we stick to what is being planned, it’s a matter of another two, two and a half to three years, we would become the third-largest economy.” He added that India’s economic trajectory is backed by its young and expanding population. “India is at a takeoff stage… and we are blessed with this demographic window for the next 20 to 25 years. The Prime Minister has already asked states to draft vision documents and this planning is showing visible results,” Subrahmanyam said, as quoted by ANI. India’s rise comes amid global trade tensions India’s economic leap comes at a time when global trade tensions are high, and the country is actively negotiating across multiple trade corridors. Post Donald Trump’s returned to Oval office, the US imposed up to 26 per cent tariffs on specific Indian goods. These remain in effect, with India now seeking a full exemption as part of bilateral negotiations. The first phase of a restructured trade agreement is anticipated by July 2025, according to recent reports. Dialogue between New Delhi and Washington has intensified. India is pushing for tariff relaxations in sectors like agriculture and textiles, while the US is keen on securing digital trade guarantees and enhanced data access. India has also finalised a landmark Free Trade Agreement (FTA) with the United Kingdom. Under the pact, tariffs on 90 per cent of British exports to India will be reduced, with 85 per cent of goods becoming fully duty-free over the next 10 years, an ambitious effort to expand India’s trade network beyond traditional partners. Despite geopolitical uncertainties and tightening global credit conditions, the IMF projects India’s economy to grow by 6.2 per cent in 2025 and 6.3 per cent in 2026. These figures remain well above the projected global growth of 2.8 per cent and 3.0 per cent, reinforcing India’s position as the fastest-growing major economy. India’s journey from the fifth largest to the fourth-largest economy reflects both economic resilience and strategic execution. As trade dynamics shift and global economies grapple with uncertainty, India’s sustained growth, favourable demographics, and policy clarity position it to potentially overtake Germany and enter the top three global economies soon.

Amid global trade tension, NITI Aayog CEO said that with a GDP of $4 trillion, India has overtaken Japan to become the world’s fourth-largest economy,

India surpasses Japan to become 4th largest economy at $4 Trillion: NITI Aayog CEO

China’s banking sector is on thin ice. A new analysis by Nikkei Asia reveals that 80 per cent of Chinese commercial banks have reported net interest margins falling below the profitability threshold, raising red flags about the financial health of the world’s second-largest economy.&nbsp;According to the report, 54 out of 58 publicly listed banks across mainland China and Hong Kong saw their net interest margins decline for the fiscal year ending December 2024.&nbsp;&nbsp;The average interest margin now stands at 1.52 per cent, below the 1.8 per cent warning level set by China’s banking association, a benchmark for financial soundness.<h2>Lending shrinks, profits dip</h2>The net interest margin, the difference between interest earned on loans and paid on deposits is a key profitability metric for banks. In 2019, only six banks were below the profitability threshold. By the end of 2024, that number had surged to 47 over 80 per cent. &nbsp;The root causes include weak loan demand, plunging lending rates, and a stagnant property market. The average interest rate on new loans in April 2025 fell to a record low of 3.2 per cent. Both businesses and households, wary of the economic outlook, are holding back on fresh credit.&nbsp;Even small and medium-sized enterprises (SMEs), typically charged higher rates due to default risks, are now borrowing at nearly the same rate as large firms. The Industrial and Commercial Bank of China, for instance, is offering loans to micro-enterprises at 3.3 per cent, barely above the national average.&nbsp;This compression of risk premiums is alarming financial experts. Pan Huafu, Vice President of Bank of Hangzhou, told Nikkei Asia that rising credit risk in the SME segment is now a top concern. Shinichi Seki, a researcher at the Japan Research Institute, estimates that potential bad loans could be as high as 7.8 per cent, far above the official figure of 1.5 per cent, which many believe underrepresents the actual risk due to lax asset valuation practices.<h2>US-China tariff tension&nbsp;</h2> This banking turmoil comes amid a renewed US-China tariff war, reignited under President Donald Trump’s second term. Earlier this year, Washington stunned global markets by imposing a sweeping 145 per cent tariff on a wide range of Chinese imports, citing national security concerns, intellectual property violations, and persistent trade imbalances. In a tit-for-tat move, Beijing retaliated with a 125 per cent reciprocal tariff targeting critical US exports, from agricultural produce and machinery to high-tech components. The sharp escalation triggered widespread fears of a global trade chill. To dial back tensions, both sides met for high-level trade talks in Geneva. While the negotiations failed to produce a comprehensive deal, they led to a significant 90-day truce that included a partial rollback of tariffs. The US reduced its tariffs on Chinese goods from 145 per cent to 30 per cent, while China lowered its tariffs on US imports from 125 per cent to 10 per cent. Despite this reduction, tariffs remain substantially higher than pre-2024 levels, and the uncertainty continues to weigh heavily on investor sentiment and global trade flows. For China, whose economy is already struggling with weak domestic demand, the impact is direct, as shrinking exports reduce credit demand, adding further strain to an already fragile banking system.<h2>Can capital injections save the day?</h2>In March, the Chinese government announced a 500-billion-yuan ($69.4 billion) capital injection during the National People’s Congress to stabilise banks. Major state-owned lenders, including the Bank of China and China Construction Bank, have since unveiled recapitalisation plans.&nbsp;But analysts caution the move may provide only temporary relief. Smaller regional banks, particularly in economically distressed rural areas, remain heavily exposed to bad loans and credit defaults.&nbsp;“All the big state-owned banks can do is bail out smaller ones through mergers and bad loan clean-ups,” said Naoki Tsukioka, Chief Economist at Mizuho Research &amp; Technologies, in an interview with Nikkei Asia. “But a swift and complete solution remains elusive.”<h2>Echoes from Japan’s banking collapse?</h2>There are growing concerns that China could follow Japan’s path in the 1990s, when bad loan mismanagement led to a decade-long economic stagnation. If Chinese banks continue to underplay asset risks and delay loan clean-ups, they risk triggering a deeper credit freeze that could severely chill the broader economy.&nbsp;

Business & Economy: In March, the Chinese government announced a 500-billion-yuan ($69.4 billion) capital injection during the National People’s Congress to stabilise banks.

China’s banking sector is on thin ice. A new analysis by Nikkei Asia reveals that 80 per cent of Chinese commercial banks have reported net interest margins falling below the profitability threshold, raising red flags about the financial health of the world’s second-largest economy. According to the report, 54 out of 58 publicly listed banks across mainland China and Hong Kong saw their net interest margins decline for the fiscal year ending December 2024. The average interest margin now stands at 1.52 per cent, below the 1.8 per cent warning level set by China’s banking association, a benchmark for financial soundness. Lending shrinks, profits dip The net interest margin, the difference between interest earned on loans and paid on deposits is a key profitability metric for banks. In 2019, only six banks were below the profitability threshold. By the end of 2024, that number had surged to 47 over 80 per cent. The root causes include weak loan demand, plunging lending rates, and a stagnant property market. The average interest rate on new loans in April 2025 fell to a record low of 3.2 per cent. Both businesses and households, wary of the economic outlook, are holding back on fresh credit. Even small and medium-sized enterprises (SMEs), typically charged higher rates due to default risks, are now borrowing at nearly the same rate as large firms. The Industrial and Commercial Bank of China, for instance, is offering loans to micro-enterprises at 3.3 per cent, barely above the national average. This compression of risk premiums is alarming financial experts. Pan Huafu, Vice President of Bank of Hangzhou, told Nikkei Asia that rising credit risk in the SME segment is now a top concern. Shinichi Seki, a researcher at the Japan Research Institute, estimates that potential bad loans could be as high as 7.8 per cent, far above the official figure of 1.5 per cent, which many believe underrepresents the actual risk due to lax asset valuation practices. US-China tariff tension This banking turmoil comes amid a renewed US-China tariff war, reignited under President Donald Trump’s second term. Earlier this year, Washington stunned global markets by imposing a sweeping 145 per cent tariff on a wide range of Chinese imports, citing national security concerns, intellectual property violations, and persistent trade imbalances. In a tit-for-tat move, Beijing retaliated with a 125 per cent reciprocal tariff targeting critical US exports, from agricultural produce and machinery to high-tech components. The sharp escalation triggered widespread fears of a global trade chill. To dial back tensions, both sides met for high-level trade talks in Geneva. While the negotiations failed to produce a comprehensive deal, they led to a significant 90-day truce that included a partial rollback of tariffs. The US reduced its tariffs on Chinese goods from 145 per cent to 30 per cent, while China lowered its tariffs on US imports from 125 per cent to 10 per cent. Despite this reduction, tariffs remain substantially higher than pre-2024 levels, and the uncertainty continues to weigh heavily on investor sentiment and global trade flows. For China, whose economy is already struggling with weak domestic demand, the impact is direct, as shrinking exports reduce credit demand, adding further strain to an already fragile banking system. Can capital injections save the day? In March, the Chinese government announced a 500-billion-yuan ($69.4 billion) capital injection during the National People’s Congress to stabilise banks. Major state-owned lenders, including the Bank of China and China Construction Bank, have since unveiled recapitalisation plans. But analysts caution the move may provide only temporary relief. Smaller regional banks, particularly in economically distressed rural areas, remain heavily exposed to bad loans and credit defaults. “All the big state-owned banks can do is bail out smaller ones through mergers and bad loan clean-ups,” said Naoki Tsukioka, Chief Economist at Mizuho Research & Technologies, in an interview with Nikkei Asia. “But a swift and complete solution remains elusive.” Echoes from Japan’s banking collapse? There are growing concerns that China could follow Japan’s path in the 1990s, when bad loan mismanagement led to a decade-long economic stagnation. If Chinese banks continue to underplay asset risks and delay loan clean-ups, they risk triggering a deeper credit freeze that could severely chill the broader economy.

Amid Trump tariff tension, China's banking sector faces risks as 80% of banks report falling net interest margins below profitability.

Over 80 per cent of Chinese banks fall below profit line as Trump tariffs bite

In a dramatic reversal, US President Donald Trump on Friday signalled conditional support for Japan-based Nippon Steel’s $14.9 billion bid to acquire United States Steel Corp., calling it a “planned partnership” that would preserve the firm’s American identity, spark a wave of industrial investment, and generate tens of thousands of jobs.Announced via Trump’s Truth Social platform, the statement marks a pivotal moment in a contentious months-long battle over the future of the iconic US manufacturer. Though details remain scarce, Trump’s endorsement was widely interpreted as a green light for the merger, sending US Steel shares soaring 21 per cent to $52.01 and rising further in after-hours trading, close to the $55-per-share bid Nippon first offered in December 2023.&nbsp;New terms, same deal?&nbsp;Trump’s message emphasised that the company would “remain in America”, retain its headquarters in Pittsburgh, and receive at least $14 billion in investment from Nippon Steel over the next 14 months. He also claimed the partnership would create a minimum of 70,000 jobs.While Trump avoided using the word ‘approval’, his rhetoric marked a significant departure from previous opposition. Both he and former President Joe Biden had earlier expressed resistance to full foreign ownership of US Steel, citing national security concerns. Biden formally blocked the deal in January before leaving office, and Trump ordered a second national security review in April, led by the Committee on Foreign Investment in the United States (CFIUS), which concluded this week.Media reports suggest that a standalone board, comprised mostly of American citizens, would govern its North American operations, overseen by federal regulators. Nippon has pledged major upgrades to mills in Indiana and Pennsylvania and proposed building a new plant at a yet-undisclosed location.The full ownership structure remains undefined, and negotiations are ongoing. Nevertheless, Trump is expected to tout the agreement at a campaign-style rally scheduled for May 30 at US Steel’s Pittsburgh facility.&nbsp;Union resistance lingers&nbsp;Despite the positive market response, strong resistance persists among organised labour. The United Steelworkers union (USW), which represents workers at US Steel plants across the Rust Belt, reiterated its opposition, citing Nippon Steel’s past history of undercutting US markets through cheap imports and trade law violations.“Our concern is still that Nippon, as a foreign company with a long and successful history of breaking our trade laws, will further degrade domestic steelmaking,” USW President David McCall said in a prior statement. The union has demanded deeper commitments on job protections and American control.Nippon has attempted to ease concerns by pledging not to lay off workers or close any plants before 2026 and by committing to honour existing labour contracts.&nbsp;Strategic stakes&nbsp;Beyond business, the deal carries significant geopolitical weight. Nippon’s acquisition bid is part of a broader push to offset declining demand in Japan by expanding global operations. For US Steel, the deal provides a financial and operational lifeline after years of underinvestment and shrinking market share.Pending final regulatory documentation and stakeholder negotiations, the transaction could close before the June 18 deadline. If finalised, it would mark one of the largest industrial takeovers in US history and set a powerful precedent for foreign investment in America’s core manufacturing sectors.&nbsp;(With inputs from agencies)

Trump’s endorsement was widely interpreted as a green light for the merger, sending US Steel shares soaring 21 per cent to $52.01 and rising further in after-hours trading, close to the $55-per-share bid Nippon first offered in December 2023.

In a dramatic reversal, US President Donald Trump on Friday signalled conditional support for Japan-based Nippon Steel’s $14.9 billion bid to acquire United States Steel Corp., calling it a “planned partnership” that would preserve the firm’s American identity, spark a wave of industrial investment, and generate tens of thousands of jobs. Announced via Trump’s Truth Social platform, the statement marks a pivotal moment in a contentious months-long battle over the future of the iconic US manufacturer. Though details remain scarce, Trump’s endorsement was widely interpreted as a green light for the merger, sending US Steel shares soaring 21 per cent to $52.01 and rising further in after-hours trading, close to the $55-per-share bid Nippon first offered in December 2023. New terms, same deal? Trump’s message emphasised that the company would “remain in America”, retain its headquarters in Pittsburgh, and receive at least $14 billion in investment from Nippon Steel over the next 14 months. He also claimed the partnership would create a minimum of 70,000 jobs. While Trump avoided using the word ‘approval’, his rhetoric marked a significant departure from previous opposition. Both he and former President Joe Biden had earlier expressed resistance to full foreign ownership of US Steel, citing national security concerns. Biden formally blocked the deal in January before leaving office, and Trump ordered a second national security review in April, led by the Committee on Foreign Investment in the United States (CFIUS), which concluded this week. Media reports suggest that a standalone board, comprised mostly of American citizens, would govern its North American operations, overseen by federal regulators. Nippon has pledged major upgrades to mills in Indiana and Pennsylvania and proposed building a new plant at a yet-undisclosed location. The full ownership structure remains undefined, and negotiations are ongoing. Nevertheless, Trump is expected to tout the agreement at a campaign-style rally scheduled for May 30 at US Steel’s Pittsburgh facility. Union resistance lingers Despite the positive market response, strong resistance persists among organised labour. The United Steelworkers union (USW), which represents workers at US Steel plants across the Rust Belt, reiterated its opposition, citing Nippon Steel’s past history of undercutting US markets through cheap imports and trade law violations. “Our concern is still that Nippon, as a foreign company with a long and successful history of breaking our trade laws, will further degrade domestic steelmaking,” USW President David McCall said in a prior statement. The union has demanded deeper commitments on job protections and American control. Nippon has attempted to ease concerns by pledging not to lay off workers or close any plants before 2026 and by committing to honour existing labour contracts. Strategic stakes Beyond business, the deal carries significant geopolitical weight. Nippon’s acquisition bid is part of a broader push to offset declining demand in Japan by expanding global operations. For US Steel, the deal provides a financial and operational lifeline after years of underinvestment and shrinking market share. Pending final regulatory documentation and stakeholder negotiations, the transaction could close before the June 18 deadline. If finalised, it would mark one of the largest industrial takeovers in US history and set a powerful precedent for foreign investment in America’s core manufacturing sectors. (With inputs from agencies)

Trump’s endorsement was widely interpreted as a green light for the merger, sending US Steel shares soaring 21 per cent to $52.01 and rising further in after-hours trading, close to the $55-per-share bid Nippon first offered in December 2023.

Trump backs US Steel–Nippon ‘partnership’, triggers US steel share rally

US President Donald Trump on May 23 reignited fears of a transatlantic trade war, announcing plans to impose a 50 per cent tariff on all European Union (EU) imports starting June 1, unless the bloc makes major concessions in ongoing trade talks.The surprise move, made via Trump’s Truth Social account, sent shockwaves through global financial markets and drew sharp rebukes from EU leaders. The announcement comes as negotiations between Washington and Brussels have stalled, with the US pushing for more favourable terms for the trade deal and the EU resisting unilateral demands.In his post on Truth Social, Trump said, “The European Union, which was formed for the primary purpose of taking advantage of the United States on trade, has been very difficult to deal with. Their powerful trade barriers, VAT taxes, ridiculous corporate penalties, non-monetary trade barriers, monetary manipulations, unfair and unjustified lawsuits against American companies, and more have led to a trade deficit with the US of more than $250,000,000 a year, a number which is totally unacceptable.”“Our discussions with them are going nowhere! Therefore, I am recommending a straight 50 per cent tariff on the European Union, starting on June 1, 2025. There is no tariff if the product is built or manufactured in the United States,” he added.The comments marked a dramatic shift after weeks of de-escalation and a temporary 90-day pause in reciprocal tariffs that had offered a brief reprieve for global markets.The markets responded with immediate volatility. US and European stocks plunged, with Germany’s DAX down 2.4 per cent, France’s CAC falling 2.2 per cent, and the STOXX600 sliding 1.7 per cent. The US dollar weakened sharply, while gold prices surged as investors sought safety. US Treasury yields also fell amid fears of a potential economic slowdown.The White House’s plan to double down on tariffs was reportedly driven by frustration over slow EU negotiations. Treasury Secretary Scott Bessent said the president is dissatisfied with the EU’s offers.“The president believes the EU’s proposals have not matched the quality of offers we’ve seen from other key partners,” Bessent told Fox News. “I would hope this would light a fire under the EU.”The proposed tariff also threatens to raise costs for a broad swath of consumer and industrial goods in the United States, ranging from German cars to Italian olive oil and French cosmetics. In 2024, the EU exported goods worth approximately €500 billion ($566 billion) to the US, led by Germany (€161 billion), Ireland (€72 billion), and Italy (€65 billion). Many of these goods are crucial components in American manufacturing supply chains.Ocean freight data from logistics platforms indicate that after a dip earlier in the year, EU-to-US shipments had begun to recover. Analysts now warn that the threat of a 50 per cent tariff could cause ocean freight orders to contract again, complicating logistics and increasing costs for US-based producers.The US ran a $236 billion goods trade deficit with the EU in 2024, according to data from the Commerce Department, with key imports including automobiles, pharmaceuticals, chemicals, and aircraft components.American manufacturers have already raised concerns that key inputs from Europe would become significantly more expensive. This could erode competitiveness, delay production timelines, and reduce investment incentives for companies that rely on transatlantic supply chains.Trump had previously lowered his 145 per cent tariff on Chinese goods to 30 per cent and retained a 10 per cent baseline tariff on most global imports. The 50 per cent figure now proposed for the EU significantly exceeds previous reciprocal tariffs, which had peaked at 20 per cent earlier this year.&nbsp;EU pushes back&nbsp;European leaders swiftly denounced the move and warned of possible retaliation. EU trade chief Maroš Šefčovič emphasised that Brussels remains committed to a deal but will defend its interests if provoked.“EU-US trade must be guided by mutual respect, not threats,” Šefčovič posted on X. “We stand ready to defend our interests.”French Trade Minister Laurent Saint-Martin criticised Trump’s comments as “unhelpful”, and Irish Prime Minister Micheál Martin warned the tariffs would “grievously damage one of the world’s most dynamic and significant trading relationships.”The EU has already paused tariffs on €23 billion ($26.15 billion) worth of US goods and has prepared up to €95 billion ($1.08 trillion) in countermeasures if talks fail. These could affect sectors ranging from aviation to spirits and technology services—a crucial part of the US economy.Julian Hinz, a researcher at the Kiel Institute for the World Economy, estimated that a 50 per cent tariff could reduce US GDP by 1.5 per cent, while Capital Economics projected Ireland, the EU’s most trade-dependent country with the US, could see a 4 per cent hit to its economy.&nbsp;Strategic tensions and policy uncertainty&nbsp;Beyond the economic costs, the proposed tariffs have strategic implications. The Trump administration is pushing the EU to align more closely with US policy on China, including coordinated tariffs on Chinese goods and curbs on market access. However, EU policymakers have been cautious, concerned that a confrontational stance toward China could hurt their own export-dependent economies.The US has also expressed frustration over Europe's insistence on mutual tariff reductions and its proposed digital services taxes targeting American technology giants. Negotiations have been hindered by the EU’s need to secure consensus among its 27 member states, a process that the Trump administration views as too slow and fragmented.Experts say the lack of a clear negotiating framework and Trump’s erratic style add further uncertainty. In prior trade disputes, such as with China and Mexico, Trump has escalated tariffs quickly and then reversed course when faced with market backlash. The unpredictability has made long-term planning difficult for companies and weakened confidence in the US as a stable trade partner.The broader geopolitical context also looms large. With tensions rising across multiple fronts, including with China, Mexico, and now the EU, analysts warn that prolonged tariff battles could result in global supply chain disruptions and a downturn in cross-border investment.&nbsp;Deadline pressure and potential economic fallout&nbsp;The June 1 deadline now looms as a critical flashpoint in global trade. While trade talks are expected to continue in Paris, the positions remain far apart. The EU has already suspended tariffs on $26 billion worth of US goods and has prepared retaliatory measures on up to $108 billion in exports should negotiations break down.Economic projections underscore the stakes. The Kiel Institute for the World Economy estimates a potential 1.5 per cent drop in US GDP if the tariff is implemented. Capital Economics projects that Ireland could see a 4 per cent hit to its output, with Germany, Italy, France, and Spain also suffering notable slowdowns.Adding to the fragility, Moody’s recently downgraded the US credit outlook, citing concerns about rising debt and the erratic nature of trade and fiscal policy. With a $36 trillion debt burden and uncertainty surrounding the future of US tax policy, investor sentiment remains fragile.As June 1 approaches, businesses, policymakers, and financial markets are bracing for what could become the most disruptive episode in US-EU trade relations in decades. Whether the tariff is ultimately a bargaining tactic or a firm policy shift, the fallout—economic, political, and strategic—could reshape transatlantic commerce well beyond 2025.

Economic projections estimate a potential 1.5 per cent drop in US GDP if the tariff is implemented and Capital Economics projects that Ireland could see a 4 per cent hit to its output, with Germany, Italy, France, and Spain also suffering notable slowdowns.

US President Donald Trump on May 23 reignited fears of a transatlantic trade war, announcing plans to impose a 50 per cent tariff on all European Union (EU) imports starting June 1, unless the bloc makes major concessions in ongoing trade talks. The surprise move, made via Trump’s Truth Social account, sent shockwaves through global financial markets and drew sharp rebukes from EU leaders. The announcement comes as negotiations between Washington and Brussels have stalled, with the US pushing for more favourable terms for the trade deal and the EU resisting unilateral demands. In his post on Truth Social, Trump said, “The European Union, which was formed for the primary purpose of taking advantage of the United States on trade, has been very difficult to deal with. Their powerful trade barriers, VAT taxes, ridiculous corporate penalties, non-monetary trade barriers, monetary manipulations, unfair and unjustified lawsuits against American companies, and more have led to a trade deficit with the US of more than $250,000,000 a year, a number which is totally unacceptable.” “Our discussions with them are going nowhere! Therefore, I am recommending a straight 50 per cent tariff on the European Union, starting on June 1, 2025. There is no tariff if the product is built or manufactured in the United States,” he added. The comments marked a dramatic shift after weeks of de-escalation and a temporary 90-day pause in reciprocal tariffs that had offered a brief reprieve for global markets. The markets responded with immediate volatility. US and European stocks plunged, with Germany’s DAX down 2.4 per cent, France’s CAC falling 2.2 per cent, and the STOXX600 sliding 1.7 per cent. The US dollar weakened sharply, while gold prices surged as investors sought safety. US Treasury yields also fell amid fears of a potential economic slowdown. The White House’s plan to double down on tariffs was reportedly driven by frustration over slow EU negotiations. Treasury Secretary Scott Bessent said the president is dissatisfied with the EU’s offers. “The president believes the EU’s proposals have not matched the quality of offers we’ve seen from other key partners,” Bessent told Fox News. “I would hope this would light a fire under the EU.” The proposed tariff also threatens to raise costs for a broad swath of consumer and industrial goods in the United States, ranging from German cars to Italian olive oil and French cosmetics. In 2024, the EU exported goods worth approximately €500 billion ($566 billion) to the US, led by Germany (€161 billion), Ireland (€72 billion), and Italy (€65 billion). Many of these goods are crucial components in American manufacturing supply chains. Ocean freight data from logistics platforms indicate that after a dip earlier in the year, EU-to-US shipments had begun to recover. Analysts now warn that the threat of a 50 per cent tariff could cause ocean freight orders to contract again, complicating logistics and increasing costs for US-based producers. The US ran a $236 billion goods trade deficit with the EU in 2024, according to data from the Commerce Department, with key imports including automobiles, pharmaceuticals, chemicals, and aircraft components. American manufacturers have already raised concerns that key inputs from Europe would become significantly more expensive. This could erode competitiveness, delay production timelines, and reduce investment incentives for companies that rely on transatlantic supply chains. Trump had previously lowered his 145 per cent tariff on Chinese goods to 30 per cent and retained a 10 per cent baseline tariff on most global imports. The 50 per cent figure now proposed for the EU significantly exceeds previous reciprocal tariffs, which had peaked at 20 per cent earlier this year. EU pushes back European leaders swiftly denounced the move and warned of possible retaliation. EU trade chief Maroš Šefčovič emphasised that Brussels remains committed to a deal but will defend its interests if provoked. “EU-US trade must be guided by mutual respect, not threats,” Šefčovič posted on X. “We stand ready to defend our interests.” French Trade Minister Laurent Saint-Martin criticised Trump’s comments as “unhelpful”, and Irish Prime Minister Micheál Martin warned the tariffs would “grievously damage one of the world’s most dynamic and significant trading relationships.” The EU has already paused tariffs on €23 billion ($26.15 billion) worth of US goods and has prepared up to €95 billion ($1.08 trillion) in countermeasures if talks fail. These could affect sectors ranging from aviation to spirits and technology services—a crucial part of the US economy. Julian Hinz, a researcher at the Kiel Institute for the World Economy, estimated that a 50 per cent tariff could reduce US GDP by 1.5 per cent, while Capital Economics projected Ireland, the EU’s most trade-dependent country with the US, could see a 4 per cent hit to its economy. Strategic tensions and policy uncertainty Beyond the economic costs, the proposed tariffs have strategic implications. The Trump administration is pushing the EU to align more closely with US policy on China, including coordinated tariffs on Chinese goods and curbs on market access. However, EU policymakers have been cautious, concerned that a confrontational stance toward China could hurt their own export-dependent economies. The US has also expressed frustration over Europe's insistence on mutual tariff reductions and its proposed digital services taxes targeting American technology giants. Negotiations have been hindered by the EU’s need to secure consensus among its 27 member states, a process that the Trump administration views as too slow and fragmented. Experts say the lack of a clear negotiating framework and Trump’s erratic style add further uncertainty. In prior trade disputes, such as with China and Mexico, Trump has escalated tariffs quickly and then reversed course when faced with market backlash. The unpredictability has made long-term planning difficult for companies and weakened confidence in the US as a stable trade partner. The broader geopolitical context also looms large. With tensions rising across multiple fronts, including with China, Mexico, and now the EU, analysts warn that prolonged tariff battles could result in global supply chain disruptions and a downturn in cross-border investment. Deadline pressure and potential economic fallout The June 1 deadline now looms as a critical flashpoint in global trade. While trade talks are expected to continue in Paris, the positions remain far apart. The EU has already suspended tariffs on $26 billion worth of US goods and has prepared retaliatory measures on up to $108 billion in exports should negotiations break down. Economic projections underscore the stakes. The Kiel Institute for the World Economy estimates a potential 1.5 per cent drop in US GDP if the tariff is implemented. Capital Economics projects that Ireland could see a 4 per cent hit to its output, with Germany, Italy, France, and Spain also suffering notable slowdowns. Adding to the fragility, Moody’s recently downgraded the US credit outlook, citing concerns about rising debt and the erratic nature of trade and fiscal policy. With a $36 trillion debt burden and uncertainty surrounding the future of US tax policy, investor sentiment remains fragile. As June 1 approaches, businesses, policymakers, and financial markets are bracing for what could become the most disruptive episode in US-EU trade relations in decades. Whether the tariff is ultimately a bargaining tactic or a firm policy shift, the fallout—economic, political, and strategic—could reshape transatlantic commerce well beyond 2025.

Economic projections estimate a potential 1.5 per cent drop in US GDP if the tariff is implemented and Capital Economics projects that Ireland could see a 4 per cent hit to its output, with Germany, Italy, France, and Spain also suffering notable slowdowns.

Trade war reload: Trump threatens EU with massive tariff

United States President Donald Trump has reignited trade tensions with a dramatic tariff threat against Apple Inc., warning that all iPhones and smartphones sold in the US but not manufactured locally could soon face a 25 per cent import duty.“I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a tariff of at least 25 per cent must be paid by Apple to the US,” Trump said in a Truth Social post.During a White House press event, Trump confirmed the tariffs would extend to all smartphone brands, including South Korea’s Samsung, declaring, “It would be also Samsung and anybody that makes that product. Otherwise, it wouldn’t be fair.” He added that the tariffs could take effect by the end of June.The announcement sent Apple shares tumbling nearly 3 per cent on May 23, deepening a stock decline of over 20 per cent since Trump returned to office.Recently, in a series of public statements and a post on Truth Social, Trump insisted that Apple must relocate its iPhone assembly operations to the United States, rejecting its current production strategies that prioritise China and increasingly, India.&nbsp;Rise of India as Apple’s new factory hub&nbsp;As Apple continues to diversify its supply chain away from China amid geopolitical tensions and rising costs, India has rapidly emerged as a key manufacturing alternative. According to India’s Commerce Ministry data, Apple assembled $22 billion worth of iPhones in India in FY25 (April 2024 to March 2025)—a 60 per cent increase from the previous year. India now accounts for 18 per cent of global iPhone output, up from just 7 per cent in 2022, and is projected to hit 32 per cent by the end of 2025.This growth is fuelled by major investments from Apple suppliers. Foxconn recently announced a $1.5 billion investment in a new component facility in Tamil Nadu, expected to create 14,000 jobs. Tata Electronics is also scaling up its assembly operations as Apple aims to produce all 60 million US-bound iPhones in India by next year.“India remains the only potential big manufacturing destination beyond China,” said Tarun Pathak, Research Director at Counterpoint, in an interview with&nbsp;Moneycontrol. He noted that the US lacks the necessary supply chain density, adding, “Even with subsidies, it would take 2-3 years to shift production meaningfully.”&nbsp;Supply chain realities&nbsp;The tariff threat has sparked concerns over rising costs for American consumers. Apple CEO Tim Cook has previously warned that tariffs would ultimately raise handset prices and disproportionately affect middle-class consumers.Despite the political pressure, analysts argue that moving production to the US is neither simple nor economically viable in the near term. According to a report by the Global Trade Research Institute (GTRI), the final assembly of an iPhone, which is done in China and India, contributes less than 3 per cent to its retail value—about $30 out of a $1,000 device.The GTRI report stated that each $1000 iPhone carries the imprint of at least a dozen countries. Apple, through its software, design, and brand, claims the lion’s share of the value, about $450 per device. US component makers such as Qualcomm and Broadcom add another $80.Taiwan earns $150 for chip manufacturing, South Korea adds $90 for OLED (organic light-emitting diode) screens and memory chips, and Japan contributes $85, mainly via camera systems. Other countries like Germany, Vietnam, and Malaysia account for a modest $45 through smaller parts.Repatriating iPhone assembly to the US would create jobs—an estimated 60,000 from India and possibly over 300,000 jobs if production also leaves China. However, labour costs in the US are significantly higher, with minimum monthly wages nearing $2,900, which is more than 12 times higher compared to $230 in India.As a result, the cost of assembling each iPhone in the US would surge from $30 to nearly $390, severely cutting Apple’s per-device profit from $450 to about $60 unless retail prices soar.Ming-Chi Kuo, an analyst with TF International Securities, wrote on X, “In terms of profitability, it’s way better for Apple to take the hit of a 25 per cent tariff on iPhones sold in the US market than to move iPhone assembly lines back to the US.”&nbsp;Strategic consequences&nbsp;Trump’s tariff stance comes at a sensitive time as India and the US are negotiating a bilateral trade agreement (BTA) during a 90-day pause in a previously announced reciprocal tariff.Although the 25 per cent tariff threat is not specifically directed at India, its rapid rise as Apple’s production hub places it in the spotlight.Ironically, the GTRI report argues that if iPhone assembly were to leave India, the country might benefit in the long term. By ceasing shallow assembly practices driven by subsidies and instead investing in core manufacturing technologies, like chipmaking and display production, India could move up the value chain.The report pointed out that India earns less than $30 per iPhone, much of which is returned to Apple through production-linked incentives (PLIs). Moving assembly out might force India to focus on deeper manufacturing capabilities.Meanwhile, Trump’s broader industrial strategy is clear: boost US employment and cut the trade deficit. Commerce Secretary Howard Lutnick recently commented on the technological gap, noting that Apple CEO Tim Cook told him iPhone assembly can’t move to the US until robotic automation meets Apple’s standards.“He (Tim Cook) said, I need to have the robotic arms, right, do it at a scale and precision that I could bring it here,” Lutnick told&nbsp;CNBC. “And the day I see that available, it’s coming here.”As the June deadline for the tariffs looms, Apple faces an urgent choice: absorb the cost, shift strategy, or pass it on to consumers, all while navigating the stormy waters of global trade and domestic politics.

Apple faces an urgent choice: absorb the cost, shift strategy, or pass it on to consumers, all while navigating the stormy waters of global trade and domestic politics.

United States President Donald Trump has reignited trade tensions with a dramatic tariff threat against Apple Inc., warning that all iPhones and smartphones sold in the US but not manufactured locally could soon face a 25 per cent import duty. “I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a tariff of at least 25 per cent must be paid by Apple to the US,” Trump said in a Truth Social post. During a White House press event, Trump confirmed the tariffs would extend to all smartphone brands, including South Korea’s Samsung, declaring, “It would be also Samsung and anybody that makes that product. Otherwise, it wouldn’t be fair.” He added that the tariffs could take effect by the end of June. The announcement sent Apple shares tumbling nearly 3 per cent on May 23, deepening a stock decline of over 20 per cent since Trump returned to office. Recently, in a series of public statements and a post on Truth Social, Trump insisted that Apple must relocate its iPhone assembly operations to the United States, rejecting its current production strategies that prioritise China and increasingly, India. Rise of India as Apple’s new factory hub As Apple continues to diversify its supply chain away from China amid geopolitical tensions and rising costs, India has rapidly emerged as a key manufacturing alternative. According to India’s Commerce Ministry data, Apple assembled $22 billion worth of iPhones in India in FY25 (April 2024 to March 2025)—a 60 per cent increase from the previous year. India now accounts for 18 per cent of global iPhone output, up from just 7 per cent in 2022, and is projected to hit 32 per cent by the end of 2025. This growth is fuelled by major investments from Apple suppliers. Foxconn recently announced a $1.5 billion investment in a new component facility in Tamil Nadu, expected to create 14,000 jobs. Tata Electronics is also scaling up its assembly operations as Apple aims to produce all 60 million US-bound iPhones in India by next year. “India remains the only potential big manufacturing destination beyond China,” said Tarun Pathak, Research Director at Counterpoint, in an interview with Moneycontrol. He noted that the US lacks the necessary supply chain density, adding, “Even with subsidies, it would take 2-3 years to shift production meaningfully.” Supply chain realities The tariff threat has sparked concerns over rising costs for American consumers. Apple CEO Tim Cook has previously warned that tariffs would ultimately raise handset prices and disproportionately affect middle-class consumers. Despite the political pressure, analysts argue that moving production to the US is neither simple nor economically viable in the near term. According to a report by the Global Trade Research Institute (GTRI), the final assembly of an iPhone, which is done in China and India, contributes less than 3 per cent to its retail value—about $30 out of a $1,000 device. The GTRI report stated that each $1000 iPhone carries the imprint of at least a dozen countries. Apple, through its software, design, and brand, claims the lion’s share of the value, about $450 per device. US component makers such as Qualcomm and Broadcom add another $80. Taiwan earns $150 for chip manufacturing, South Korea adds $90 for OLED (organic light-emitting diode) screens and memory chips, and Japan contributes $85, mainly via camera systems. Other countries like Germany, Vietnam, and Malaysia account for a modest $45 through smaller parts. Repatriating iPhone assembly to the US would create jobs—an estimated 60,000 from India and possibly over 300,000 jobs if production also leaves China. However, labour costs in the US are significantly higher, with minimum monthly wages nearing $2,900, which is more than 12 times higher compared to $230 in India. As a result, the cost of assembling each iPhone in the US would surge from $30 to nearly $390, severely cutting Apple’s per-device profit from $450 to about $60 unless retail prices soar. Ming-Chi Kuo, an analyst with TF International Securities, wrote on X, “In terms of profitability, it’s way better for Apple to take the hit of a 25 per cent tariff on iPhones sold in the US market than to move iPhone assembly lines back to the US.” Strategic consequences Trump’s tariff stance comes at a sensitive time as India and the US are negotiating a bilateral trade agreement (BTA) during a 90-day pause in a previously announced reciprocal tariff. Although the 25 per cent tariff threat is not specifically directed at India, its rapid rise as Apple’s production hub places it in the spotlight. Ironically, the GTRI report argues that if iPhone assembly were to leave India, the country might benefit in the long term. By ceasing shallow assembly practices driven by subsidies and instead investing in core manufacturing technologies, like chipmaking and display production, India could move up the value chain. The report pointed out that India earns less than $30 per iPhone, much of which is returned to Apple through production-linked incentives (PLIs). Moving assembly out might force India to focus on deeper manufacturing capabilities. Meanwhile, Trump’s broader industrial strategy is clear: boost US employment and cut the trade deficit. Commerce Secretary Howard Lutnick recently commented on the technological gap, noting that Apple CEO Tim Cook told him iPhone assembly can’t move to the US until robotic automation meets Apple’s standards. “He (Tim Cook) said, I need to have the robotic arms, right, do it at a scale and precision that I could bring it here,” Lutnick told CNBC. “And the day I see that available, it’s coming here.” As the June deadline for the tariffs looms, Apple faces an urgent choice: absorb the cost, shift strategy, or pass it on to consumers, all while navigating the stormy waters of global trade and domestic politics.

Apple faces an urgent choice: absorb the cost, shift strategy, or pass it on to consumers, all while navigating the stormy waters of global trade and domestic politics.

iPhones made in India, trouble made in D.C.

United States President Donald Trump hosted an exclusive dinner on May 22 at his Northern Virginia golf club, gathering 220 of the top investors in his newly launched cryptocurrency, $TRUMP, for a lavish affair that blurred the lines between presidential duty, personal profit, and political power.The event, touted by organisers as “the most exclusive invitation”, came just months after the debut of the Trump-themed memecoin, which skyrocketed in value upon release but has since dropped nearly 80 per cent from its peak. Still, the coin has enriched Trump and his business affiliates, with blockchain data indicating over $300 million in trading fees flowing to insiders and as much as $10 billion in paper value from retained coin reserves.&nbsp;Protesters decry “crypto corruption”.&nbsp;Held behind closed doors with no media access, the crypto gala drew fierce protests outside the gates of Trump National Golf Club. Around 100 demonstrators, joined by lawmakers like Sen. Jeff Merkley (D-Ore.), carried signs reading “Stop crypto corruption” and “America isn’t for sale.”&nbsp;According to video clips on X, Merkley called the dinner “the Mount Everest of corruption”, highlighting concerns about selling access to the presidency through financial speculation.Notably, a number of international investors attended the event, including Tron founder Justin Sun, who has invested over $90 million in Trump-linked ventures and remains under investigation by the US regulators for market manipulation.According to media reports, while the White House insisted Trump attended “in his personal capacity”, he addressed guests from a podium bearing the presidential seal and pledged to make the US “the crypto capital of the world”.A ranking leaderboard used to determine who could attend the dinner and a private reception with Trump encouraged investors to acquire and hold large quantities of $TRUMP. Some guests used pseudonyms to secure their spot, raising transparency concerns.&nbsp;Crypto, power, and profit collide&nbsp;The $TRUMP coin, described by its creators as “a way for Trump supporters to have fun,” has evolved into a high-stakes political asset. Beyond the dinner, the top four investors also received $100,000 Trump-branded watches.Trump family members, including Donald Jr. and Eric Trump, have launched related ventures, such as crypto mining operations and a stake in World Liberty Financial, which has attracted billions from foreign sovereign funds, notably the UAE.The Trump Organization, through entities like CIC Digital, holds significant shares of $TRUMP and profits from every transaction. A blockchain analysis by Chainalysis estimates more than $320 million has already been generated in fees.The president's embrace of crypto marks a stark reversal from his earlier stance. In 2019, Trump called cryptocurrencies “based on thin air” and a haven for illegal activity. But after the crypto industry pledged financial backing for his reelection campaign, Trump has become a vocal advocate, signing executive orders to reduce crypto regulations and even creating a Strategic Bitcoin Reserve.While crypto insiders cheer the Trump administration’s policies, including paused lawsuits from the Securities and Exchange Commission, some in the industry have expressed unease.&nbsp;The future of crypto&nbsp;As Congress pushes ahead with the GENIUS Act and other pro-crypto legislation, Trump’s personal involvement in digital assets threatens to cloud policy decisions with perceived conflicts of interest. Watchdog groups and ethics scholars have raised alarms about foreign money flowing into projects tied directly to the Trump family, while critics question the true motivations behind regulatory shifts.White House press secretary Karoline Leavitt defended the dinner, stating that the president’s assets are in a blind trust managed by his children and that the administration has “nothing to do” with the $TRUMP coin.Still, the visual of a sitting president promoting a personal financial product, especially one tied to speculative investment and foreign backers, has sparked national debate over the future of money, politics, and presidential ethics.As guests departed the club with Trump hats and raffle prizes, and the president lifted off in a military helicopter, the evening cemented a defining characteristic of the Trump era: the merging of spectacle, power, and private enterprise—now on the blockchain.

Donald Trump hosted an exclusive dinner on May 22 at his Northern Virginia golf club, gathering 220 of the top investors in his newly launched cryptocurrency, $TRUMP, for a lavish affair that blurred the lines between presidential duty, personal profit, and political power.

United States President Donald Trump hosted an exclusive dinner on May 22 at his Northern Virginia golf club, gathering 220 of the top investors in his newly launched cryptocurrency, $TRUMP, for a lavish affair that blurred the lines between presidential duty, personal profit, and political power. The event, touted by organisers as “the most exclusive invitation”, came just months after the debut of the Trump-themed memecoin, which skyrocketed in value upon release but has since dropped nearly 80 per cent from its peak. Still, the coin has enriched Trump and his business affiliates, with blockchain data indicating over $300 million in trading fees flowing to insiders and as much as $10 billion in paper value from retained coin reserves. Protesters decry “crypto corruption”. Held behind closed doors with no media access, the crypto gala drew fierce protests outside the gates of Trump National Golf Club. Around 100 demonstrators, joined by lawmakers like Sen. Jeff Merkley (D-Ore.), carried signs reading “Stop crypto corruption” and “America isn’t for sale.” According to video clips on X, Merkley called the dinner “the Mount Everest of corruption”, highlighting concerns about selling access to the presidency through financial speculation. Notably, a number of international investors attended the event, including Tron founder Justin Sun, who has invested over $90 million in Trump-linked ventures and remains under investigation by the US regulators for market manipulation. According to media reports, while the White House insisted Trump attended “in his personal capacity”, he addressed guests from a podium bearing the presidential seal and pledged to make the US “the crypto capital of the world”. A ranking leaderboard used to determine who could attend the dinner and a private reception with Trump encouraged investors to acquire and hold large quantities of $TRUMP. Some guests used pseudonyms to secure their spot, raising transparency concerns. Crypto, power, and profit collide The $TRUMP coin, described by its creators as “a way for Trump supporters to have fun,” has evolved into a high-stakes political asset. Beyond the dinner, the top four investors also received $100,000 Trump-branded watches. Trump family members, including Donald Jr. and Eric Trump, have launched related ventures, such as crypto mining operations and a stake in World Liberty Financial, which has attracted billions from foreign sovereign funds, notably the UAE. The Trump Organization, through entities like CIC Digital, holds significant shares of $TRUMP and profits from every transaction. A blockchain analysis by Chainalysis estimates more than $320 million has already been generated in fees. The president's embrace of crypto marks a stark reversal from his earlier stance. In 2019, Trump called cryptocurrencies “based on thin air” and a haven for illegal activity. But after the crypto industry pledged financial backing for his reelection campaign, Trump has become a vocal advocate, signing executive orders to reduce crypto regulations and even creating a Strategic Bitcoin Reserve. While crypto insiders cheer the Trump administration’s policies, including paused lawsuits from the Securities and Exchange Commission, some in the industry have expressed unease. The future of crypto As Congress pushes ahead with the GENIUS Act and other pro-crypto legislation, Trump’s personal involvement in digital assets threatens to cloud policy decisions with perceived conflicts of interest. Watchdog groups and ethics scholars have raised alarms about foreign money flowing into projects tied directly to the Trump family, while critics question the true motivations behind regulatory shifts. White House press secretary Karoline Leavitt defended the dinner, stating that the president’s assets are in a blind trust managed by his children and that the administration has “nothing to do” with the $TRUMP coin. Still, the visual of a sitting president promoting a personal financial product, especially one tied to speculative investment and foreign backers, has sparked national debate over the future of money, politics, and presidential ethics. As guests departed the club with Trump hats and raffle prizes, and the president lifted off in a military helicopter, the evening cemented a defining characteristic of the Trump era: the merging of spectacle, power, and private enterprise—now on the blockchain.

Donald Trump hosted an exclusive dinner on May 22 at his Northern Virginia golf club, gathering 220 of the top investors in his newly launched cryptocurrency, $TRUMP, for a lavish affair that blurred the lines between presidential duty, personal profit, and political power.

Trump hosts crypto gala, drawing praise, protests, and ethics concerns

Chinese electric vehicle (EV) giant BYD has overtaken Tesla in battery-electric vehicle (BEV) sales in Europe for the first time, marking a key turning point in the region’s EV landscape, according to market researcher JATO Dynamics.&nbsp;In April 2025, BYD registered 7,231 BEVs across 28 European countries, registering an increase of 169 per cent from the same month last year. Tesla, once the dominant EV force in Europe, registered 7,165 units, a steep decline of 49 per cent year-on-year. Though the margin between the two is narrow, analysts say the implications are far-reaching.&nbsp;The development comes amid broader growth in Europe’s EV sector, with BEV registrations rising 28 per cent in April. Volkswagen led that surge with a 61 per cent jump in EV sales, while its Skoda brand more than tripled EV registrations. BMW, Renault, Audi, and Kia also posted gains. In contrast, aside from Tesla, Volvo and Mercedes recorded declining numbers.&nbsp;BYD expands despite tariffs&nbsp;BYD’s rapid rise in Europe has been bolstered by a strategic pivot toward plug-in hybrids in response to new European Union (EU) tariffs on China-made BEVs. Including plug-in hybrids, BYD's total registrations soared 359 per cent in April, positioning it ahead of legacy automakers like Fiat and Seat in markets such as France.&nbsp;The tariffs—17 per cent for BYD compared to just 7.8 per cent for Tesla’s made-in-China cars—were intended to curb the influence of Chinese EV brands amid accusations of unfair trade practices. However, BYD has managed to offset the impact by diversifying its product lineup and offering competitive pricing. Hybrid vehicles, not subject to the same tariffs, have also proven key to this growth.&nbsp;Despite these trade hurdles, Chinese EV brands collectively saw a 59 per cent increase in European registrations in April. Tesla, on the other hand, continued its downward trend. In the first quarter of 2025, Tesla posted a 71 per cent drop in net income, and its sales have slumped each month this year—down 36 per cent in March, 47 per cent in February, and 50 per cent in January.&nbsp;Observers cite multiple factors for Tesla’s struggles, including limited model updates and CEO Elon Musk’s controversial political affiliations. His close ties to the Trump administration and public controversies have drawn protests in Europe and alienated consumers in a region known for its progressive policies.&nbsp;The road ahead&nbsp;BYD’s momentum is expected to continue as it prepares to open a manufacturing plant in Hungary, its first in Europe. Meanwhile, Tesla is working to expand its Berlin gigafactory in a bid to recapture market share.&nbsp;JATO Dynamics noted that although Tesla remains a significant global EV player, BYD’s expansion and local manufacturing plans put it in a strong position to challenge for dominance in key international markets.&nbsp;With the European EV market heating up, industry watchers say this rivalry is only just beginning—and it’s no longer guaranteed that Tesla will lead the charge.&nbsp;(With inputs from agencies)

Tesla, once the dominant EV force in Europe, registered a steep decline of 49 per cent year-on-year. Though the margin between the two is narrow, analysts say the implications are far-reaching.

Chinese electric vehicle (EV) giant BYD has overtaken Tesla in battery-electric vehicle (BEV) sales in Europe for the first time, marking a key turning point in the region’s EV landscape, according to market researcher JATO Dynamics. In April 2025, BYD registered 7,231 BEVs across 28 European countries, registering an increase of 169 per cent from the same month last year. Tesla, once the dominant EV force in Europe, registered 7,165 units, a steep decline of 49 per cent year-on-year. Though the margin between the two is narrow, analysts say the implications are far-reaching. The development comes amid broader growth in Europe’s EV sector, with BEV registrations rising 28 per cent in April. Volkswagen led that surge with a 61 per cent jump in EV sales, while its Skoda brand more than tripled EV registrations. BMW, Renault, Audi, and Kia also posted gains. In contrast, aside from Tesla, Volvo and Mercedes recorded declining numbers. BYD expands despite tariffs BYD’s rapid rise in Europe has been bolstered by a strategic pivot toward plug-in hybrids in response to new European Union (EU) tariffs on China-made BEVs. Including plug-in hybrids, BYD's total registrations soared 359 per cent in April, positioning it ahead of legacy automakers like Fiat and Seat in markets such as France. The tariffs—17 per cent for BYD compared to just 7.8 per cent for Tesla’s made-in-China cars—were intended to curb the influence of Chinese EV brands amid accusations of unfair trade practices. However, BYD has managed to offset the impact by diversifying its product lineup and offering competitive pricing. Hybrid vehicles, not subject to the same tariffs, have also proven key to this growth. Despite these trade hurdles, Chinese EV brands collectively saw a 59 per cent increase in European registrations in April. Tesla, on the other hand, continued its downward trend. In the first quarter of 2025, Tesla posted a 71 per cent drop in net income, and its sales have slumped each month this year—down 36 per cent in March, 47 per cent in February, and 50 per cent in January. Observers cite multiple factors for Tesla’s struggles, including limited model updates and CEO Elon Musk’s controversial political affiliations. His close ties to the Trump administration and public controversies have drawn protests in Europe and alienated consumers in a region known for its progressive policies. The road ahead BYD’s momentum is expected to continue as it prepares to open a manufacturing plant in Hungary, its first in Europe. Meanwhile, Tesla is working to expand its Berlin gigafactory in a bid to recapture market share. JATO Dynamics noted that although Tesla remains a significant global EV player, BYD’s expansion and local manufacturing plans put it in a strong position to challenge for dominance in key international markets. With the European EV market heating up, industry watchers say this rivalry is only just beginning—and it’s no longer guaranteed that Tesla will lead the charge. (With inputs from agencies)

Tesla, once the dominant EV force in Europe, registered a steep decline of 49 per cent year-on-year. Though the margin between the two is narrow, analysts say the implications are far-reaching.

BYD overtakes Tesla in Europe EV sales for the first time

India is set to surpass China as the primary driver of global oil demand growth over the next decade, according to a new report by Moody’s Ratings. The shift comes as China approaches peak crude consumption, driven by slower economic growth and accelerated adoption of new energy vehicles (NEVs), while India continues to experience robust energy demand growth supported by economic expansion and infrastructure development.Moody’s projects India’s crude oil consumption to grow annually at 3-5 per cent over the next 3-5 years, compared to China’s marginal growth during the same period. China’s oil demand is expected to peak at around 800 million tonnes per annum (mtpa) by 2030, while India’s demand trajectory remains upward, underscoring a significant transformation in global energy dynamics.&nbsp;What is fuelling India’s demand?&nbsp;India, currently the world’s third-largest oil consumer behind the United States and China, is planning a major expansion of its refining capacity to meet rising domestic fuel demand. Refining capacity is projected to increase by 20 per cent to 309.5 mtpa by 2030 from 256.8 mtpa as of April 2024, driven by investments from state-owned oil marketing companies such as Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Corporation Ltd.Rising industrialisation, rapid urbanisation, and massive government-led infrastructure investments are expected to boost transportation fuel demand, particularly for petrol and diesel. At the same time, demand for petrochemical products will also rise in tandem with broader economic development.In contrast, China’s refining capacity is nearing a state-imposed cap of 1 billion tonnes, curbing further growth potential. With the country’s pivot toward cleaner energy sources, including solar, wind, and electric vehicles, consumption of traditional fuels like gasoline and diesel is set to decline, although demand for jet fuel and naphtha may still grow due to rising air travel and chemical production.&nbsp;India’s import dependence to rise&nbsp;Despite its growing consumption, India’s domestic oil and gas production remains a weak link. Moody’s warns that if India cannot reverse its declining output from ageing oil fields and limited exploration investment, its reliance on imports will rise further. Currently, India imports nearly 90 per cent of its crude oil and around 50 per cent of its natural gas requirements, raising concerns about long-term energy security.In contrast, China, which imports over 70 per cent of its crude and 35–40 per cent of its gas needs, is actively working to reduce import dependency through heavy investment in domestic shale gas and offshore exploration projects. As a result, Chinese national oil companies (NOCs) are expected to outperform their Indian peers in production growth over the next 3-5 years.Chinese NOCs also benefit from greater vertical integration, which Moody’s says reduces earnings volatility, along with stronger financial metrics such as lower leverage and higher interest coverage. In India, weaker integration, ageing infrastructure, and policy-related earnings swings have made national firms more vulnerable.&nbsp;Green energy transition&nbsp;Moody’s report highlights a significant policy divergence between the two Asian giants. China’s energy policies are more market-oriented and focused on enhancing self-sufficiency, while India’s regulatory framework still heavily influences fuel prices, often leading to volatile earnings for Indian NOCs.Additionally, India relies more on taxes and dividends from its petroleum sector to fund its fiscal deficit, increasing political sensitivity around fuel prices.Environmental policies are also advancing at different speeds. Chinese NOCs are under greater regulatory pressure to transition to greener practices, while India’s carbon regulations are still evolving. This means Indian firms currently face less immediate pressure to invest in low-carbon technologies, though such pressures are likely to grow in the coming years as global climate commitments intensify.Meanwhile, India is pushing to increase the share of natural gas in its energy mix from 6 to 15 per cent by 2030. Gas is seen as a critical transition fuel, particularly for sectors like fertilisers and petrochemicals, and for urban energy use via piped and compressed natural gas.Gas demand in India is expected to grow by 4-7 per cent annually through the decade, outpacing China’s gas demand growth rate. However, challenges remain in improving domestic gas infrastructure and maintaining affordability, especially against the backdrop of rapidly falling renewable energy prices.As China transitions toward a lower-carbon, more self-sufficient energy economy, India’s growing appetite for oil and gas places it at the centre of global energy markets. However, India’s growing dependence on imports and lag in domestic production pose risks to its energy security and economic stability.While India is set to be the engine of global oil demand growth, its long-term sustainability will depend on policy reforms, infrastructure development, and investments in domestic exploration and green energy.According to Moody’s, the ability of Indian NOCs to execute production plans and manage volatility will be crucial in determining the country’s success in navigating the next decade of energy transition.

The shift comes as China approaches peak crude consumption, driven by slower economic growth and accelerated adoption of new energy vehicles, while India continues to experience robust energy demand growth supported by economic expansion and infrastructure development.

India is set to surpass China as the primary driver of global oil demand growth over the next decade, according to a new report by Moody’s Ratings. The shift comes as China approaches peak crude consumption, driven by slower economic growth and accelerated adoption of new energy vehicles (NEVs), while India continues to experience robust energy demand growth supported by economic expansion and infrastructure development. Moody’s projects India’s crude oil consumption to grow annually at 3-5 per cent over the next 3-5 years, compared to China’s marginal growth during the same period. China’s oil demand is expected to peak at around 800 million tonnes per annum (mtpa) by 2030, while India’s demand trajectory remains upward, underscoring a significant transformation in global energy dynamics. What is fuelling India’s demand? India, currently the world’s third-largest oil consumer behind the United States and China, is planning a major expansion of its refining capacity to meet rising domestic fuel demand. Refining capacity is projected to increase by 20 per cent to 309.5 mtpa by 2030 from 256.8 mtpa as of April 2024, driven by investments from state-owned oil marketing companies such as Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Corporation Ltd. Rising industrialisation, rapid urbanisation, and massive government-led infrastructure investments are expected to boost transportation fuel demand, particularly for petrol and diesel. At the same time, demand for petrochemical products will also rise in tandem with broader economic development. In contrast, China’s refining capacity is nearing a state-imposed cap of 1 billion tonnes, curbing further growth potential. With the country’s pivot toward cleaner energy sources, including solar, wind, and electric vehicles, consumption of traditional fuels like gasoline and diesel is set to decline, although demand for jet fuel and naphtha may still grow due to rising air travel and chemical production. India’s import dependence to rise Despite its growing consumption, India’s domestic oil and gas production remains a weak link. Moody’s warns that if India cannot reverse its declining output from ageing oil fields and limited exploration investment, its reliance on imports will rise further. Currently, India imports nearly 90 per cent of its crude oil and around 50 per cent of its natural gas requirements, raising concerns about long-term energy security. In contrast, China, which imports over 70 per cent of its crude and 35–40 per cent of its gas needs, is actively working to reduce import dependency through heavy investment in domestic shale gas and offshore exploration projects. As a result, Chinese national oil companies (NOCs) are expected to outperform their Indian peers in production growth over the next 3-5 years. Chinese NOCs also benefit from greater vertical integration, which Moody’s says reduces earnings volatility, along with stronger financial metrics such as lower leverage and higher interest coverage. In India, weaker integration, ageing infrastructure, and policy-related earnings swings have made national firms more vulnerable. Green energy transition Moody’s report highlights a significant policy divergence between the two Asian giants. China’s energy policies are more market-oriented and focused on enhancing self-sufficiency, while India’s regulatory framework still heavily influences fuel prices, often leading to volatile earnings for Indian NOCs. Additionally, India relies more on taxes and dividends from its petroleum sector to fund its fiscal deficit, increasing political sensitivity around fuel prices. Environmental policies are also advancing at different speeds. Chinese NOCs are under greater regulatory pressure to transition to greener practices, while India’s carbon regulations are still evolving. This means Indian firms currently face less immediate pressure to invest in low-carbon technologies, though such pressures are likely to grow in the coming years as global climate commitments intensify. Meanwhile, India is pushing to increase the share of natural gas in its energy mix from 6 to 15 per cent by 2030. Gas is seen as a critical transition fuel, particularly for sectors like fertilisers and petrochemicals, and for urban energy use via piped and compressed natural gas. Gas demand in India is expected to grow by 4-7 per cent annually through the decade, outpacing China’s gas demand growth rate. However, challenges remain in improving domestic gas infrastructure and maintaining affordability, especially against the backdrop of rapidly falling renewable energy prices. As China transitions toward a lower-carbon, more self-sufficient energy economy, India’s growing appetite for oil and gas places it at the centre of global energy markets. However, India’s growing dependence on imports and lag in domestic production pose risks to its energy security and economic stability. While India is set to be the engine of global oil demand growth, its long-term sustainability will depend on policy reforms, infrastructure development, and investments in domestic exploration and green energy. According to Moody’s, the ability of Indian NOCs to execute production plans and manage volatility will be crucial in determining the country’s success in navigating the next decade of energy transition.

The shift comes as China approaches peak crude consumption, driven by slower economic growth and accelerated adoption of new energy vehicles, while India continues to experience robust energy demand growth supported by economic expansion and infrastructure development.

India to drive global oil demand growth as China nears peak: Moody’s

Japan’s core inflation accelerated to 3.5 per cent year-on-year in April, the fastest pace in over two years, propelled by a dramatic rise in food prices, particularly rice, and sustained energy costs, according to the official data released on May 23.The figure, which excludes volatile fresh food prices but includes energy, surpassed market expectations of a 3.4 per cent gain and intensified speculation that the Bank of Japan (BOJ) could raise interest rates again before year-end.The sharp price increase highlights the ongoing challenge for the BOJ in balancing inflation control with economic growth, especially amid mounting trade uncertainties tied to US President Donald Trump’s tariff measures.Japan’s central bank has held its main rate steady at 0.5 per cent since ending its decade-long ultra-loose monetary policy in January, but signs of persistent inflation are strengthening calls for further tightening.&nbsp;Rice prices trigger political fallout&nbsp;Driving much of April’s inflation was an eye-popping 98.4 per cent year-on-year spike in rice prices—the steepest since records began in 1971—contributing to overall food inflation of 6.5 per cent. The rise has stirred public discontent and added pressure on Prime Minister Shigeru Ishiba’s administration, which is already facing sagging approval ratings and a looming election test in July.The crisis deepened earlier this week when Agriculture Minister Taku Eto resigned following a controversial remark that he never bought rice due to frequent donations from supporters. The gaffe sparked widespread backlash, leading Ishiba to publicly apologise and pledge to reduce rice prices to below ¥4,000 ($28) per 5-kilogram. As of mid-May, prices had soared to ¥4,268 on average in major supermarkets.The government is now drawing from emergency rice reserves and considering stimulus measures, including a potential return of subsidies on electricity and gas bills phased out in March. Energy prices jumped 9.3 per cent in April, compounding the inflationary burden on households.&nbsp;Rate hike in sight&nbsp;The acceleration in core inflation—above the BOJ’s 2 per cent target for over three years—has renewed pressure on the central bank to act. Another gauge that excludes both fresh food and energy and is closely watched as an indicator of demand-driven inflation rose to 3 per cent in April from 2.9 per cent in March.The BOJ remains cautious. In its early May meeting, it kept rates unchanged and flagged heightened global uncertainty from Trump’s tariff regime. Japan faces a looming July deadline to respond to a new 24 per cent reciprocal tariff, in addition to a baseline 10 per cent duty and an ongoing 25 per cent levy on cars and metals. Trade talks in Washington continue, but negotiations remain deadlocked.Economists warn that while inflation is rising, Japan’s economic foundation remains fragile. The economy contracted in Q1 due to weak consumer spending and lacklustre exports, and real wages have declined for three consecutive months despite wage increases.With inflation eating into household purchasing power and political tensions rising, policymakers must navigate a delicate path.The BOJ’s next policy meeting is scheduled for June 16–17, where markets will watch closely for any shift in tone as Japan attempts to manage its highest inflation in over two years amidst a volatile global backdrop.&nbsp;(With inputs from agencies)

The sharp price increase highlights the ongoing challenge for the BOJ in balancing inflation control with economic growth, especially amid mounting trade uncertainties tied to US President Donald Trump’s tariff measures.

Japan’s core inflation accelerated to 3.5 per cent year-on-year in April, the fastest pace in over two years, propelled by a dramatic rise in food prices, particularly rice, and sustained energy costs, according to the official data released on May 23. The figure, which excludes volatile fresh food prices but includes energy, surpassed market expectations of a 3.4 per cent gain and intensified speculation that the Bank of Japan (BOJ) could raise interest rates again before year-end. The sharp price increase highlights the ongoing challenge for the BOJ in balancing inflation control with economic growth, especially amid mounting trade uncertainties tied to US President Donald Trump’s tariff measures. Japan’s central bank has held its main rate steady at 0.5 per cent since ending its decade-long ultra-loose monetary policy in January, but signs of persistent inflation are strengthening calls for further tightening. Rice prices trigger political fallout Driving much of April’s inflation was an eye-popping 98.4 per cent year-on-year spike in rice prices—the steepest since records began in 1971—contributing to overall food inflation of 6.5 per cent. The rise has stirred public discontent and added pressure on Prime Minister Shigeru Ishiba’s administration, which is already facing sagging approval ratings and a looming election test in July. The crisis deepened earlier this week when Agriculture Minister Taku Eto resigned following a controversial remark that he never bought rice due to frequent donations from supporters. The gaffe sparked widespread backlash, leading Ishiba to publicly apologise and pledge to reduce rice prices to below ¥4,000 ($28) per 5-kilogram. As of mid-May, prices had soared to ¥4,268 on average in major supermarkets. The government is now drawing from emergency rice reserves and considering stimulus measures, including a potential return of subsidies on electricity and gas bills phased out in March. Energy prices jumped 9.3 per cent in April, compounding the inflationary burden on households. Rate hike in sight The acceleration in core inflation—above the BOJ’s 2 per cent target for over three years—has renewed pressure on the central bank to act. Another gauge that excludes both fresh food and energy and is closely watched as an indicator of demand-driven inflation rose to 3 per cent in April from 2.9 per cent in March. The BOJ remains cautious. In its early May meeting, it kept rates unchanged and flagged heightened global uncertainty from Trump’s tariff regime. Japan faces a looming July deadline to respond to a new 24 per cent reciprocal tariff, in addition to a baseline 10 per cent duty and an ongoing 25 per cent levy on cars and metals. Trade talks in Washington continue, but negotiations remain deadlocked. Economists warn that while inflation is rising, Japan’s economic foundation remains fragile. The economy contracted in Q1 due to weak consumer spending and lacklustre exports, and real wages have declined for three consecutive months despite wage increases. With inflation eating into household purchasing power and political tensions rising, policymakers must navigate a delicate path. The BOJ’s next policy meeting is scheduled for June 16–17, where markets will watch closely for any shift in tone as Japan attempts to manage its highest inflation in over two years amidst a volatile global backdrop. (With inputs from agencies)

The sharp price increase highlights the ongoing challenge for the BOJ in balancing inflation control with economic growth, especially amid mounting trade uncertainties tied to US President Donald Trump’s tariff measures.

Japan's inflation surges to 3.5% in April amid soaring rice prices and trade tensions

Urban India isn’t cooking, it’s ordering. Whether it’s stacked burgers or millet bowls, city dwellers are increasingly trading in their chapati dinners for convenience cuisine.&nbsp; &nbsp;According to a new Deloitte-FICCI report, nearly 50 per cent of urban consumers’ food budgets now go toward prepared foods, dining out, and deliveries, a striking reflection of how deeply lifestyle, income, and convenience are reshaping the nation’s foodscape.<h2>What the Deloitte-FICCI report highlights</h2>The report doesn’t just capture a passing trend; it paints a picture of a profound economic shift. With rising incomes and accelerating urbanisation, the average Indian consumer regardless of income bracket and is choosing more varied, processed, and protein-rich diets over traditional staples.&nbsp;“Consumers across income groups are moving beyond traditional staples toward more varied, protein-rich, processed diets,” the report states, signalling a future were convenience trumps custom. &nbsp;One of the most notable shifts is the emergence of premiumisation. Higher-income groups are no longer settling for basics they’re actively seeking better quality, indulgent, and health-conscious foods, even if that means shelling out more for it. But this appetite for innovation isn’t restricted to metros.&nbsp;Rural India, too, is undergoing a quiet food revolution. Since the early 2000s, rural spending on core staples like cereals, vegetables, and pulses has seen a steady decline.&nbsp;&nbsp;For the first time, expenditure on beverages and processed foods in rural households has overtaken that on cereals. This pivot is largely fuelled by smaller, affordable SKUs and better market penetration by food companies.&nbsp;“As rural prosperity increases, consumer behaviours are converging,” said Anand Ramanathan, Partner and Consumer Industry Leader, Deloitte South Asia. “Tier 2, Tier 3 cities and beyond are emerging as key growth powerhouses.”&nbsp;The report points to a massive, untapped opportunity for India’s food processing sector, noting that with 52 per cent of India’s land area suitable for agriculture, the sector is poised for a boom.&nbsp;<h2>Health is the new hunger</h2>&nbsp;Wellness is no longer a niche, it’s mainstream. According to the Deloitte-FICCI report, urban consumers are actively seeking high-protein, low-sugar, gut-friendly, and organic food options.&nbsp; Traditional Indian superfoods like millets and makhana have made a comeback, celebrated for their nutritional punch and cultural resonance. “The urban youth population is increasingly becoming health-conscious and shifting towards millet consumption,” the report notes. This trend has sparked the rise of start-ups focused on millet-based snacks, breakfast options, and beverages, and it’s not slowing down anytime soon. Clean eating is becoming a priority for the urban Indian. The survey found that over 90 per cent of consumers consider clean labels — products made with minimal, natural, and recognisable ingredients — important while making food purchases. Nearly 31 per cent of these consumers are even willing to pay over 10 per cent more for items that carry organic or natural claims. This has given rise to functional foods, with growing adoption of products enriched with probiotics, prebiotics, and other nutritional fortifications. From gut-friendly yoghurts to fortified juices and superfood bars, the market is expanding rapidly. Start-ups and global brands are reformulating traditional products for Indian palates while enhancing their health benefits.&nbsp;“As India moves towards a $5 trillion GDP by FY28 and aims to become a developed country by 2047, a larger and more affluent consumer base will demand better, safer and more convenient food options,” the report adds.<h2>Dining out surge post-pandemic &nbsp;</h2>India’s restaurant sector may have taken a hit during the pandemic, but it’s bouncing back with force. The India Food Services Report 2024 by the National Restaurant Association of India (NRAI) shows just how robust this rebound is.&nbsp;The sector is expected to grow at a compound annual growth rate (CAGR) of 8.1 per cent, reaching ₹7.76 trillion by FY28. The organised food services segment, which includes dine-in restaurants, cloud kitchens, and QSRs is projected to grow even faster at 13.2 per cent CAGR, capturing over 52.9 per cent of the total market share by the same period.&nbsp;&nbsp;As of now, the food services industry employs around 8.5 million people, a number forecast to surpass 10.3 million by FY28.&nbsp;The reasons behind this boom are multifaceted. The rise of quick-commerce platforms delivering everything from restaurant meals to gourmet snacks in under 30 minutes has reportedly made dining out (or in) easier than ever. Additionally, a young, aspirational population is increasingly dining out not just for sustenance but for social capital and lifestyle.&nbsp;&nbsp;This demand is not limited to metros; tier 2 and 3 cities are emerging as hotbeds of dining culture, driven by better infrastructure, rising incomes, and a desire to emulate urban habits.

The report doesn’t just capture a passing trend; it paints a picture of a profound economic shift. With rising incomes and accelerating urbanisation, the average Indian consumer regardless of income bracket and is choosing more varied, processed, and protein-rich diets over traditional staples.

Urban India isn’t cooking, it’s ordering. Whether it’s stacked burgers or millet bowls, city dwellers are increasingly trading in their chapati dinners for convenience cuisine. According to a new Deloitte-FICCI report, nearly 50 per cent of urban consumers’ food budgets now go toward prepared foods, dining out, and deliveries, a striking reflection of how deeply lifestyle, income, and convenience are reshaping the nation’s foodscape. What the Deloitte-FICCI report highlights The report doesn’t just capture a passing trend; it paints a picture of a profound economic shift. With rising incomes and accelerating urbanisation, the average Indian consumer regardless of income bracket and is choosing more varied, processed, and protein-rich diets over traditional staples. “Consumers across income groups are moving beyond traditional staples toward more varied, protein-rich, processed diets,” the report states, signalling a future were convenience trumps custom. One of the most notable shifts is the emergence of premiumisation. Higher-income groups are no longer settling for basics they’re actively seeking better quality, indulgent, and health-conscious foods, even if that means shelling out more for it. But this appetite for innovation isn’t restricted to metros. Rural India, too, is undergoing a quiet food revolution. Since the early 2000s, rural spending on core staples like cereals, vegetables, and pulses has seen a steady decline. For the first time, expenditure on beverages and processed foods in rural households has overtaken that on cereals. This pivot is largely fuelled by smaller, affordable SKUs and better market penetration by food companies. “As rural prosperity increases, consumer behaviours are converging,” said Anand Ramanathan, Partner and Consumer Industry Leader, Deloitte South Asia. “Tier 2, Tier 3 cities and beyond are emerging as key growth powerhouses.” The report points to a massive, untapped opportunity for India’s food processing sector, noting that with 52 per cent of India’s land area suitable for agriculture, the sector is poised for a boom. Health is the new hunger Wellness is no longer a niche, it’s mainstream. According to the Deloitte-FICCI report, urban consumers are actively seeking high-protein, low-sugar, gut-friendly, and organic food options. Traditional Indian superfoods like millets and makhana have made a comeback, celebrated for their nutritional punch and cultural resonance. “The urban youth population is increasingly becoming health-conscious and shifting towards millet consumption,” the report notes. This trend has sparked the rise of start-ups focused on millet-based snacks, breakfast options, and beverages, and it’s not slowing down anytime soon. Clean eating is becoming a priority for the urban Indian. The survey found that over 90 per cent of consumers consider clean labels — products made with minimal, natural, and recognisable ingredients — important while making food purchases. Nearly 31 per cent of these consumers are even willing to pay over 10 per cent more for items that carry organic or natural claims. This has given rise to functional foods, with growing adoption of products enriched with probiotics, prebiotics, and other nutritional fortifications. From gut-friendly yoghurts to fortified juices and superfood bars, the market is expanding rapidly. Start-ups and global brands are reformulating traditional products for Indian palates while enhancing their health benefits. “As India moves towards a $5 trillion GDP by FY28 and aims to become a developed country by 2047, a larger and more affluent consumer base will demand better, safer and more convenient food options,” the report adds. Dining out surge post-pandemic India’s restaurant sector may have taken a hit during the pandemic, but it’s bouncing back with force. The India Food Services Report 2024 by the National Restaurant Association of India (NRAI) shows just how robust this rebound is. The sector is expected to grow at a compound annual growth rate (CAGR) of 8.1 per cent, reaching ₹7.76 trillion by FY28. The organised food services segment, which includes dine-in restaurants, cloud kitchens, and QSRs is projected to grow even faster at 13.2 per cent CAGR, capturing over 52.9 per cent of the total market share by the same period. As of now, the food services industry employs around 8.5 million people, a number forecast to surpass 10.3 million by FY28. The reasons behind this boom are multifaceted. The rise of quick-commerce platforms delivering everything from restaurant meals to gourmet snacks in under 30 minutes has reportedly made dining out (or in) easier than ever. Additionally, a young, aspirational population is increasingly dining out not just for sustenance but for social capital and lifestyle. This demand is not limited to metros; tier 2 and 3 cities are emerging as hotbeds of dining culture, driven by better infrastructure, rising incomes, and a desire to emulate urban habits.

Deloitte-FICCI report reveals shocking details about Urban Indians choices. The report reveals nearly 50 per cent of urban consumers’ food budgets now go toward prepared foods, dining out, and deliveries.&nbsp;

Urban Indians now spend half their food budget outside the home highlights Deloitte FICCI report

In a major move to expand its footprint in the global premium motorcycle segment, Bajaj Auto Ltd announced plans on May 22 to acquire a controlling stake in Austrian motorcycle maker KTM AG. The deal, subject to regulatory clearances, will see Bajaj shift from a dormant minority stakeholder to the majority owner of KTM through its Netherlands-based subsidiary, Bajaj Auto International Holdings BV (BAIHBV).Bajaj, one of India's leading two-wheeler makers, has outlined a comprehensive €800 million ($903.75 million) funding package to support KTM’s financial restructuring and revival. The funding includes €600 million ($677.82 million) in fresh capital being deployed now, in addition to €200 million ($225.91 million) already infused earlier to address KTM’s urgent liquidity needs.&nbsp;Rescuing a storied brand&nbsp;KTM AG, known for high-performance motorcycle brands such as KTM, Husqvarna, and GASGAS, filed for judicial restructuring in November 2024 due to spiralling debt and operational bottlenecks.On February 25, 2025, its creditors approved a restructuring plan that proposed a one-time payout of 30 per cent of their claims by May 23. Bajaj’s financial support is crucial for meeting this deadline and reviving the company’s stalled operations.The €800 million ($903.75 million) package includes a €450 million ($508.30 million) secured term loan to KTM and €150 million ($169.41 million) in convertible bonds issued by Pierer Bajaj AG (PBAG)—a joint venture between Bajaj and Austrian entrepreneur Stefan Pierer.Bajaj’s BAIHBV currently holds a 49.9 per cent stake in PBAG, which owns 75 per cent of KTM’s listed parent entity, Pierer Mobility AG (PMAG). The deal will enable Bajaj to acquire full control of PBAG, thereby gaining indirect control over KTM.Additionally, BAIHBV has assumed a commitment worth €80 million from Dabepo Holding GmbH to prevent loan foreclosure that could jeopardise KTM’s revival plans.&nbsp;Strategic shift for Bajaj Auto&nbsp;“This twin move of taking ownership (subject to approvals) and paring down debt by providing liquidity at a crucial stage positions Bajaj Auto as a driving force in shaping the future of one of the world’s most admired high-performance motorcycle companies,” the company said in a statement.Bajaj’s involvement with KTM dates back to 2007. Over the years, the partnership has expanded to include joint development, manufacturing, and export of KTM motorcycles from India to over 80 countries. Bajaj Auto currently holds an effective 37.5 per cent stake in KTM via PMAG.Post-deal, Bajaj aims to resume production at KTM’s Austrian facilities after months of stoppage and enhance operations through its established India-based development programmes. Long-time KTM CEO Stefan Pierer is expected to step down as part of the transition.The deal not only marks a significant governance shift but also positions Bajaj Auto to leverage KTM’s global brand equity for wider opportunities in technology innovation and international market expansion.The court is expected to confirm KTM’s restructuring plan by mid-June, following which the creditor payments will be released and legal proceedings concluded. In parallel, Bajaj is seeking approvals from Austria’s Takeover Commission, Foreign Investment Control, and Merger Control Authorities.&nbsp;(With inputs from agencies)

The deal, subject to regulatory clearances, will see Bajaj Auto shift from a dormant minority stakeholder to the majority owner of KTM through its Netherlands-based subsidiary, Bajaj Auto International Holdings BV.

In a major move to expand its footprint in the global premium motorcycle segment, Bajaj Auto Ltd announced plans on May 22 to acquire a controlling stake in Austrian motorcycle maker KTM AG. The deal, subject to regulatory clearances, will see Bajaj shift from a dormant minority stakeholder to the majority owner of KTM through its Netherlands-based subsidiary, Bajaj Auto International Holdings BV (BAIHBV). Bajaj, one of India's leading two-wheeler makers, has outlined a comprehensive €800 million ($903.75 million) funding package to support KTM’s financial restructuring and revival. The funding includes €600 million ($677.82 million) in fresh capital being deployed now, in addition to €200 million ($225.91 million) already infused earlier to address KTM’s urgent liquidity needs. Rescuing a storied brand KTM AG, known for high-performance motorcycle brands such as KTM, Husqvarna, and GASGAS, filed for judicial restructuring in November 2024 due to spiralling debt and operational bottlenecks. On February 25, 2025, its creditors approved a restructuring plan that proposed a one-time payout of 30 per cent of their claims by May 23. Bajaj’s financial support is crucial for meeting this deadline and reviving the company’s stalled operations. The €800 million ($903.75 million) package includes a €450 million ($508.30 million) secured term loan to KTM and €150 million ($169.41 million) in convertible bonds issued by Pierer Bajaj AG (PBAG)—a joint venture between Bajaj and Austrian entrepreneur Stefan Pierer. Bajaj’s BAIHBV currently holds a 49.9 per cent stake in PBAG, which owns 75 per cent of KTM’s listed parent entity, Pierer Mobility AG (PMAG). The deal will enable Bajaj to acquire full control of PBAG, thereby gaining indirect control over KTM. Additionally, BAIHBV has assumed a commitment worth €80 million from Dabepo Holding GmbH to prevent loan foreclosure that could jeopardise KTM’s revival plans. Strategic shift for Bajaj Auto “This twin move of taking ownership (subject to approvals) and paring down debt by providing liquidity at a crucial stage positions Bajaj Auto as a driving force in shaping the future of one of the world’s most admired high-performance motorcycle companies,” the company said in a statement. Bajaj’s involvement with KTM dates back to 2007. Over the years, the partnership has expanded to include joint development, manufacturing, and export of KTM motorcycles from India to over 80 countries. Bajaj Auto currently holds an effective 37.5 per cent stake in KTM via PMAG. Post-deal, Bajaj aims to resume production at KTM’s Austrian facilities after months of stoppage and enhance operations through its established India-based development programmes. Long-time KTM CEO Stefan Pierer is expected to step down as part of the transition. The deal not only marks a significant governance shift but also positions Bajaj Auto to leverage KTM’s global brand equity for wider opportunities in technology innovation and international market expansion. The court is expected to confirm KTM’s restructuring plan by mid-June, following which the creditor payments will be released and legal proceedings concluded. In parallel, Bajaj is seeking approvals from Austria’s Takeover Commission, Foreign Investment Control, and Merger Control Authorities. (With inputs from agencies)

The deal, subject to regulatory clearances, will see Bajaj Auto shift from a dormant minority stakeholder to the majority owner of KTM through its Netherlands-based subsidiary, Bajaj Auto International Holdings BV.

Bajaj Auto to acquire majority stake in KTM with €800 million revival package

In a move that signals a shift in the tech industry’s race to redefine hardware for the artificial intelligence (AI) age, OpenAI has acquired the design-focused hardware startup&nbsp;io, co-founded by former Apple designer Sir Jony Ive, in a deal valued at nearly $6.5 billion.&nbsp;&nbsp;The all-equity acquisition is OpenAI’s largest deal to date and marks the company’s formal entry into consumer hardware, as it seeks to build the next generation of devices purpose-built for an AI-native future.&nbsp;The acquisition, announced on May 22, follows nearly two years of quiet collaboration between OpenAI CEO Sam Altman and Ive, whose design work at Apple shaped the modern consumer technology landscape through products like the iPhone, iPod, and MacBook. Their shared ambition to reimagine how humans interact with computers has culminated in the creation of&nbsp;io, a startup that aimed to build a “family of products for the AGI (artificial general intelligence) era”—referencing AGI, a theoretical form of AI with human-level capabilities.&nbsp;As part of the deal, OpenAI will absorb io’s 55-person team of engineers, scientists, and manufacturing experts. Ive himself will not become an OpenAI employee but will assume “deep design and creative responsibilities” across both OpenAI and io via his design firm, LoveFrom, which will remain independent.&nbsp;&nbsp;LoveFrom will now become a long-term creative partner for OpenAI, overseeing the design direction of its hardware, apps, and future versions of ChatGPT.&nbsp;Reimagining human-computer interaction&nbsp;“This is an extraordinary moment,” Ive and Altman wrote in a joint statement. “Computers are now seeing, thinking, and understanding. Yet our experience with them remains shaped by traditional products and interfaces. We are on the brink of a new generation of technology.”&nbsp;While exact details about the upcoming hardware remain limited, both Ive and Altman emphasised that the devices under development are intended to break free from the screen-based computing paradigm. Early concepts reportedly include wearable devices like AI-powered glasses or headphones with contextual awareness.&nbsp;&nbsp;Altman said the project aims to “completely reimagine what it means to use a computer,” adding that the leap in AI capabilities now demands new form factors. “AI is such a big leap forward in terms of what people can do that it needs a new kind of computing experience to get the maximum potential out of it,” he stated.&nbsp;The move marks a return to consumer technology for Ive, who left Apple in 2019 after nearly three decades, during which he designed many of the company’s most iconic products in collaboration with Steve Jobs. He later founded LoveFrom, which has worked with Ferrari, Airbnb, and Moncler, and in 2023 launched io, formed under the LoveFrom umbrella, with fellow Apple alumni Scott Cannon, Evans Hankey, and Tang Tan.&nbsp;“I have a growing sense that everything I’ve learned over the last 30 years has led me to this place and to this moment,” Ive said. “It’s a relationship and a way of working together that I think is going to yield products and products and products.”&nbsp;The OpenAI deal also reunites Ive with Hankey, Apple’s former VP of industrial design, and Tan, who led iPhone and Apple Watch hardware engineering until 2024. Both will join OpenAI as part of the io integration.&nbsp;Implications for the tech industry&nbsp;OpenAI’s bold foray into hardware comes at a time when traditional tech giants like Apple, Meta, and Google are all vying to define the next era of AI-infused devices. Apple, once a leader in consumer hardware innovation, has faced criticism for its slower pace in AI integration.&nbsp;&nbsp;By bringing Ive onboard, OpenAI not only gains a world-class design team but also signals its intent to go beyond software and reshape how people physically engage with AI. Industry analysts believe the move could upend long-standing assumptions about hardware design.&nbsp;The first devices from the OpenAI-io collaboration are expected to debut in 2026. Until then, the companies will continue operating out of their respective offices in San Francisco, including io’s Jackson Square studio.&nbsp;As the industry looks beyond smartphones, the partnership between Altman and Ive could usher in a new chapter for consumer technology. “We’re just getting started,” said Altman. “It’s a crazy, ambitious thing to make—and it’ll be worth the wait.”

As part of the deal, OpenAI will absorb io’s 55-person team of engineers, scientists, and manufacturing experts. Ive himself will not become an OpenAI employee but will assume “deep design and creative responsibilities” across both OpenAI and io. 

In a move that signals a shift in the tech industry’s race to redefine hardware for the artificial intelligence (AI) age, OpenAI has acquired the design-focused hardware startup io, co-founded by former Apple designer Sir Jony Ive, in a deal valued at nearly $6.5 billion. The all-equity acquisition is OpenAI’s largest deal to date and marks the company’s formal entry into consumer hardware, as it seeks to build the next generation of devices purpose-built for an AI-native future. The acquisition, announced on May 22, follows nearly two years of quiet collaboration between OpenAI CEO Sam Altman and Ive, whose design work at Apple shaped the modern consumer technology landscape through products like the iPhone, iPod, and MacBook. Their shared ambition to reimagine how humans interact with computers has culminated in the creation of io, a startup that aimed to build a “family of products for the AGI (artificial general intelligence) era”—referencing AGI, a theoretical form of AI with human-level capabilities. As part of the deal, OpenAI will absorb io’s 55-person team of engineers, scientists, and manufacturing experts. Ive himself will not become an OpenAI employee but will assume “deep design and creative responsibilities” across both OpenAI and io via his design firm, LoveFrom, which will remain independent. LoveFrom will now become a long-term creative partner for OpenAI, overseeing the design direction of its hardware, apps, and future versions of ChatGPT. Reimagining human-computer interaction “This is an extraordinary moment,” Ive and Altman wrote in a joint statement. “Computers are now seeing, thinking, and understanding. Yet our experience with them remains shaped by traditional products and interfaces. We are on the brink of a new generation of technology.” While exact details about the upcoming hardware remain limited, both Ive and Altman emphasised that the devices under development are intended to break free from the screen-based computing paradigm. Early concepts reportedly include wearable devices like AI-powered glasses or headphones with contextual awareness. Altman said the project aims to “completely reimagine what it means to use a computer,” adding that the leap in AI capabilities now demands new form factors. “AI is such a big leap forward in terms of what people can do that it needs a new kind of computing experience to get the maximum potential out of it,” he stated. The move marks a return to consumer technology for Ive, who left Apple in 2019 after nearly three decades, during which he designed many of the company’s most iconic products in collaboration with Steve Jobs. He later founded LoveFrom, which has worked with Ferrari, Airbnb, and Moncler, and in 2023 launched io, formed under the LoveFrom umbrella, with fellow Apple alumni Scott Cannon, Evans Hankey, and Tang Tan. “I have a growing sense that everything I’ve learned over the last 30 years has led me to this place and to this moment,” Ive said. “It’s a relationship and a way of working together that I think is going to yield products and products and products.” The OpenAI deal also reunites Ive with Hankey, Apple’s former VP of industrial design, and Tan, who led iPhone and Apple Watch hardware engineering until 2024. Both will join OpenAI as part of the io integration. Implications for the tech industry OpenAI’s bold foray into hardware comes at a time when traditional tech giants like Apple, Meta, and Google are all vying to define the next era of AI-infused devices. Apple, once a leader in consumer hardware innovation, has faced criticism for its slower pace in AI integration. By bringing Ive onboard, OpenAI not only gains a world-class design team but also signals its intent to go beyond software and reshape how people physically engage with AI. Industry analysts believe the move could upend long-standing assumptions about hardware design. The first devices from the OpenAI-io collaboration are expected to debut in 2026. Until then, the companies will continue operating out of their respective offices in San Francisco, including io’s Jackson Square studio. As the industry looks beyond smartphones, the partnership between Altman and Ive could usher in a new chapter for consumer technology. “We’re just getting started,” said Altman. “It’s a crazy, ambitious thing to make—and it’ll be worth the wait.”

As part of the deal, OpenAI will absorb io’s 55-person team of engineers, scientists, and manufacturing experts. Ive himself will not become an OpenAI employee but will assume “deep design and creative responsibilities” across both OpenAI and io.&nbsp;

OpenAI acquires Jony Ive’s startup for $6.5 billion to build AI hardware

The scenic region of Kashmir, once bustling with travellers exploring alpine meadows, houseboats, and snow-capped peaks, now lies silent. Following the 22 April attack in Pahalgam that killed 26 people, fear spread rapidly through the valley.&nbsp;&nbsp;Tens of thousands of tourists rushed to leave, triggering a wave of cancellations and paralysing the region’s fragile tourism economy.&nbsp;Hotels, guesthouses, and Srinagar’s famous houseboats are now deserted. May and June which is traditionally peak months are seeing virtually no new bookings. Yaseen Tuman, a sixth-generation houseboat operator in Srinagar, told Associated Press the current situation is dire. “There is a haunting silence now. This isn’t just a seasonal slump — it’s a crisis,” he said. “If all goes well, we might start seeing tourists again in six months. Until then, it’s survival mode.”<h2>Tourism as Kashmir’s fragile backbone</h2>Tourism accounts for nearly seven per cent of Jammu and Kashmir’s economy, according to the Directorate of Economics and Statistics, J&amp;K Government. In 2024, the region had seen a promising start, with over three million tourists visiting — a steady increase from 2.71 million in 2023. That influx spurred economic activity, encouraging thousands of locals to invest in family-run hotels, transport services, restaurants, and handicraft businesses.&nbsp;But the optimism was short-lived. “Sheer devastation,” said Sheikh Bashir Ahmed, Vice President of the Kashmir Hotel and Restaurant Association, speaking to Associated Press. “We had 12,000 hotel rooms booked till June, all have been cancelled. Tens of thousands of people in the hospitality sector are now jobless.” The disruption goes far beyond hotels. Handicraft sellers in Srinagar’s bustling bazaars say footfall has plummeted. On Dal Lake, once filled with tourists in brightly painted shikaras, boatmen now spend their days anchored and idle. “There used to be long queues for boat rides,” said Fayaz Ahmed, a boatman. “Now there’s nothing but silence.” Taxi drivers are facing similar hardships. Mohammed Irfan, who usually ferries tourists to Gulmarg and the Mughal gardens, told Associated Press that he hasn’t had work in two weeks. “Even a half-day break was a luxury before,” he said. “Now, my vehicle hasn’t moved.” While Kashmir’s tourism sector has long been vulnerable to political and security shocks, it had shown surprising resilience in recent years, even after the revocation of Article 370 in 2019. The Modi government had cited the rising number of tourist arrivals as a key indicator of normalcy returning to the valley.&nbsp;But the latest crisis has shattered that narrative. With tensions escalating and no clear diplomatic thaw in sight, many believe the future of Kashmir’s tourism hinges on long-term geopolitical stability.&nbsp;“This will keep happening unless the core issue between India and Pakistan is resolved,” said Sheikh Bashir Ahmed. “Tourism needs peace. Without it, this cycle of revival and collapse will continue,” he told Associated Press.<h2>India’s five big strikes after Pahalgam</h2>In the aftermath of the 22 April terror attack, India swiftly responded with a combination of diplomatic, economic, and military measures aimed at isolating Pakistan and dismantling terror networks. According to the Associated Press, New Delhi first suspended the Indus Waters Treaty, a 1960 agreement that governs water sharing between the two countries. This move was symbolic and strategic — a direct message that all options were on the table.&nbsp;India then expelled Pakistani military advisers stationed at its New Delhi mission and scaled down its diplomatic staff in Islamabad. In a significant escalation, India revoked all visas issued to Pakistani nationals and suspended the SAARC Visa Exemption Scheme, effectively closing its borders to Pakistani travellers. &nbsp;On 1 May, India shut down the Attari–Wagah border crossing, the only overland trade and travel route between the two nations. The most consequential move, however, came in the form of Operation Sindoor, a military strike executed between 6 and 7 May, in which India targeted nine terror infrastructure sites in Pakistan and Pakistan-occupied Kashmir, especially in Poonch, Rajouri and Akhnoor. According to Army officials quoted by the Associated Press, six of those sites were effectively neutralised.<h2>Tanks on the move, missiles in the sky</h2> The situation escalated rapidly. India moved T-72 tanks and BMP-2 armoured vehicles close to the Line of Control (LoC) in a show of force. Pakistan responded with attempted drone and missile strikes on 8, 9 and 10 May, prompting further skirmishes along the LoC. However, after backchannel talks between the two militaries on 10 May, both sides agreed to a ceasefire, putting a temporary lid on hostility. &nbsp; &nbsp;

Business & Economy: Hotels, guesthouses, and Srinagar’s famous houseboats are now deserted. May and June which is traditionally peak months are seeing virtually no new bookings.

The scenic region of Kashmir, once bustling with travellers exploring alpine meadows, houseboats, and snow-capped peaks, now lies silent. Following the 22 April attack in Pahalgam that killed 26 people, fear spread rapidly through the valley. Tens of thousands of tourists rushed to leave, triggering a wave of cancellations and paralysing the region’s fragile tourism economy. Hotels, guesthouses, and Srinagar’s famous houseboats are now deserted. May and June which is traditionally peak months are seeing virtually no new bookings. Yaseen Tuman, a sixth-generation houseboat operator in Srinagar, told Associated Press the current situation is dire. “There is a haunting silence now. This isn’t just a seasonal slump — it’s a crisis,” he said. “If all goes well, we might start seeing tourists again in six months. Until then, it’s survival mode.” Tourism as Kashmir’s fragile backbone Tourism accounts for nearly seven per cent of Jammu and Kashmir’s economy, according to the Directorate of Economics and Statistics, J&K Government. In 2024, the region had seen a promising start, with over three million tourists visiting — a steady increase from 2.71 million in 2023. That influx spurred economic activity, encouraging thousands of locals to invest in family-run hotels, transport services, restaurants, and handicraft businesses. But the optimism was short-lived. “Sheer devastation,” said Sheikh Bashir Ahmed, Vice President of the Kashmir Hotel and Restaurant Association, speaking to Associated Press. “We had 12,000 hotel rooms booked till June, all have been cancelled. Tens of thousands of people in the hospitality sector are now jobless.” The disruption goes far beyond hotels. Handicraft sellers in Srinagar’s bustling bazaars say footfall has plummeted. On Dal Lake, once filled with tourists in brightly painted shikaras, boatmen now spend their days anchored and idle. “There used to be long queues for boat rides,” said Fayaz Ahmed, a boatman. “Now there’s nothing but silence.” Taxi drivers are facing similar hardships. Mohammed Irfan, who usually ferries tourists to Gulmarg and the Mughal gardens, told Associated Press that he hasn’t had work in two weeks. “Even a half-day break was a luxury before,” he said. “Now, my vehicle hasn’t moved.” While Kashmir’s tourism sector has long been vulnerable to political and security shocks, it had shown surprising resilience in recent years, even after the revocation of Article 370 in 2019. The Modi government had cited the rising number of tourist arrivals as a key indicator of normalcy returning to the valley. But the latest crisis has shattered that narrative. With tensions escalating and no clear diplomatic thaw in sight, many believe the future of Kashmir’s tourism hinges on long-term geopolitical stability. “This will keep happening unless the core issue between India and Pakistan is resolved,” said Sheikh Bashir Ahmed. “Tourism needs peace. Without it, this cycle of revival and collapse will continue,” he told Associated Press. India’s five big strikes after Pahalgam In the aftermath of the 22 April terror attack, India swiftly responded with a combination of diplomatic, economic, and military measures aimed at isolating Pakistan and dismantling terror networks. According to the Associated Press, New Delhi first suspended the Indus Waters Treaty, a 1960 agreement that governs water sharing between the two countries. This move was symbolic and strategic — a direct message that all options were on the table. India then expelled Pakistani military advisers stationed at its New Delhi mission and scaled down its diplomatic staff in Islamabad. In a significant escalation, India revoked all visas issued to Pakistani nationals and suspended the SAARC Visa Exemption Scheme, effectively closing its borders to Pakistani travellers. On 1 May, India shut down the Attari–Wagah border crossing, the only overland trade and travel route between the two nations. The most consequential move, however, came in the form of Operation Sindoor, a military strike executed between 6 and 7 May, in which India targeted nine terror infrastructure sites in Pakistan and Pakistan-occupied Kashmir, especially in Poonch, Rajouri and Akhnoor. According to Army officials quoted by the Associated Press, six of those sites were effectively neutralised. Tanks on the move, missiles in the sky The situation escalated rapidly. India moved T-72 tanks and BMP-2 armoured vehicles close to the Line of Control (LoC) in a show of force. Pakistan responded with attempted drone and missile strikes on 8, 9 and 10 May, prompting further skirmishes along the LoC. However, after backchannel talks between the two militaries on 10 May, both sides agreed to a ceasefire, putting a temporary lid on hostility.

Following the 22 April attack in Pahalgam that killed 26 people, fear spread rapidly through the Kashmir valley. Tens of thousands of tourists rushed to leave, triggering a wave of cancellations and paralysing the region’s fragile tourism economy.

Kashmir left high and dry as tourism collapses amid India-Pakistan tensions

Bitcoin surged to a new all-time high on May 22, climbing above $111,000 for the first time, as bullish momentum built on the back of institutional investment, favourable macroeconomic trends, and progress on US crypto regulation.&nbsp;The cryptocurrency claimed an intra-day high of $111,746 at 0400 GMT according to CoinMarketCap, surpassing its previous high from January. It has gained more than 18 per cent in May alone, reflecting growing demand from institutional investors and renewed optimism in the broader market.&nbsp;What is boosting Bitcoin?&nbsp;Driving the rally is a wave of fresh capital flowing into US-listed spot Bitcoin exchange-traded funds (ETFs). eToro Australia analyst Reece Hobson told Decrypt that the net inflows into these ETFs have topped $2.8 billion this month, lifting total ETF holdings to more than $122 billion. Hobson noted that this demand, along with tighter supply following April’s Bitcoin halving event, has been a powerful catalyst.&nbsp;Meanwhile, traditional financial giants are increasingly warming up to crypto. J.P. Morgan CEO Jamie Dimon, a long-time Bitcoin sceptic, acknowledged this week that the bank is now allowing clients to invest in the digital asset. Separately, Coinbase’s upcoming inclusion in the S&amp;P 500 index is being seen as a landmark moment for the sector, even as the exchange faces a Department of Justice probe related to a recent data breach.&nbsp;In addition to institutional flows, broader macroeconomic factors have supported Bitcoin’s rise. The weakening US dollar has bolstered the cryptocurrency’s appeal as a store of value, while a broader rally in tech stocks—the Nasdaq is up 30 per cent since April—has encouraged risk-on sentiment among investors.&nbsp;Progress on the regulatory front has also been a key driver. A bipartisan push in the US Senate to pass legislation on stablecoins has boosted confidence among investors looking for greater clarity and legitimacy in the crypto space.&nbsp;Although Bitcoin continues to lead the crypto rally, attention is gradually turning to altcoins like Ethereum and Solana, which have yet to catch up. Analysts suggest a broader rally could emerge if Bitcoin’s dominance rises further and liquidity conditions improve.&nbsp;For now, Bitcoin’s upward march reflects not just investor enthusiasm but also growing signs of institutional integration and regulatory maturity in the world of digital assets.

Bitcoin claimed an intra-day high of $111,746 at 0400 GMT according to CoinMarketCap. It has gained more than 18 per cent in May alone, reflecting growing demand from institutional investors and renewed optimism in the broader market.

Bitcoin surged to a new all-time high on May 22, climbing above $111,000 for the first time, as bullish momentum built on the back of institutional investment, favourable macroeconomic trends, and progress on US crypto regulation. The cryptocurrency claimed an intra-day high of $111,746 at 0400 GMT according to CoinMarketCap, surpassing its previous high from January. It has gained more than 18 per cent in May alone, reflecting growing demand from institutional investors and renewed optimism in the broader market. What is boosting Bitcoin? Driving the rally is a wave of fresh capital flowing into US-listed spot Bitcoin exchange-traded funds (ETFs). eToro Australia analyst Reece Hobson told Decrypt that the net inflows into these ETFs have topped $2.8 billion this month, lifting total ETF holdings to more than $122 billion. Hobson noted that this demand, along with tighter supply following April’s Bitcoin halving event, has been a powerful catalyst. Meanwhile, traditional financial giants are increasingly warming up to crypto. J.P. Morgan CEO Jamie Dimon, a long-time Bitcoin sceptic, acknowledged this week that the bank is now allowing clients to invest in the digital asset. Separately, Coinbase’s upcoming inclusion in the S&P 500 index is being seen as a landmark moment for the sector, even as the exchange faces a Department of Justice probe related to a recent data breach. In addition to institutional flows, broader macroeconomic factors have supported Bitcoin’s rise. The weakening US dollar has bolstered the cryptocurrency’s appeal as a store of value, while a broader rally in tech stocks—the Nasdaq is up 30 per cent since April—has encouraged risk-on sentiment among investors. Progress on the regulatory front has also been a key driver. A bipartisan push in the US Senate to pass legislation on stablecoins has boosted confidence among investors looking for greater clarity and legitimacy in the crypto space. Although Bitcoin continues to lead the crypto rally, attention is gradually turning to altcoins like Ethereum and Solana, which have yet to catch up. Analysts suggest a broader rally could emerge if Bitcoin’s dominance rises further and liquidity conditions improve. For now, Bitcoin’s upward march reflects not just investor enthusiasm but also growing signs of institutional integration and regulatory maturity in the world of digital assets.

Bitcoin claimed an intra-day high of $111,746 at 0400 GMT according to CoinMarketCap. It has gained more than 18 per cent in May alone, reflecting growing demand from institutional investors and renewed optimism in the broader market.

Bitcoin hits record high amid institutional buying and regulatory optimism

India is poised to weather ongoing global economic turbulence, according to the Reserve Bank of India’s (RBI) latest bulletin, which highlights strong macro fundamentals, easing inflation, and strategic foreign exchange management.&nbsp;&nbsp;At the same time, New Delhi is navigating shifting global trade currents — from a critical tariff truce with the US to the successful conclusion of a landmark free trade agreement with the United Kingdom.&nbsp;“The global economic outlook remains clouded amidst shifting policy landscapes and lingering vulnerabilities,” the RBI said in its May bulletin. “India stands well-positioned to navigate the ongoing global headwinds with confidence, ready to harness emerging opportunities and consolidate its role as a key driver of global growth.”<h2>RBI eases rates, inflation cools</h2>Retail inflation dropped to 3.16 per cent in April, marking the third consecutive month below the RBI’s 4 per cent target and the lowest level since July 2019. With inflationary pressures easing, the central bank adopted an ‘accommodative’ monetary policy stance, cutting rates for the second time in April and signalling further support to spur growth.&nbsp;The bulletin also warned of increasing temperature anomalies affecting vegetable prices, calling for quicker adoption of climate-resilient crops to support long-term price stability.<h2>Forex reserves surge amid rupee rally</h2>In a sign of active intervention, the RBI reported a net purchase of $14.36 billion in the spot foreign exchange market in March, reversing a $1.6 billion net sale in February. This move came as the Indian rupee appreciated over 2 per cent during the month, buoyed by a weaker US dollar and strong foreign inflows.&nbsp;The rupee traded between 85.39 and 87.44 per US dollar in March and stood at 85.6375 on 22 May. Meanwhile, the RBI’s net forward sale contracts stood at $84.35 billion by end-March, indicating continued efforts to manage currency volatility.<h2>IMF outlook: India to remain fastest-growing major economy</h2>The International Monetary Fund (IMF) echoed a similarly positive tone. In its latest World Economic Outlook, the IMF projected India’s economy to grow by 6.8 per cent in 2025, making it the fastest-growing major economy in the world.&nbsp; The Fund credited robust domestic demand, public infrastructure spending, and resilient services exports for India’s growth momentum, even as global growth remains subdued.&nbsp;The IMF also praised India’s efforts in maintaining macroeconomic stability, especially amid tight global financial conditions and ongoing geopolitical uncertainty.<h2>Navigating to global trade tension&nbsp;</h2> The RBI’s optimism comes as India recalibrates its global trade strategy. Following President Donald Trump’s 9 April announcement of a 90-day tariff pause, India is racing to clinch a trade deal with the US to prevent a punitive 26 per cent tariff on Indian exports.&nbsp; The pause provides a narrow window for negotiation, with New Delhi eyeing quicker access for key sectors such as pharmaceuticals, textiles, and IT services. In contrast, India has scored a major breakthrough on the western front. Earlier this month, India and the UK concluded negotiations for a long-awaited free trade agreement (FTA) — a deal in the works since January 2022. The India-UK trade pact aims to double bilateral trade from $60 billion to $120 billion by 2030. It eliminates import duties on 99 per cent of Indian goods entering the UK, granting enhanced access for sectors such as textiles, gems and jewellery, auto parts, and agriculture. In return, British firms will gain broader access to India’s fast-growing market, including in areas like legal services, education, and renewable energy.&nbsp; India has also ensured protection for sensitive sectors, maintaining a balance between liberalisation and domestic interests.&nbsp;

Business & Economy: RBI's bulletin comes at a time when New Delhi is navigating shifting global trade currents — from a critical tariff truce with the US to the successful conclusion of a landmark free trade agreement with the United Kingdom.

India is poised to weather ongoing global economic turbulence, according to the Reserve Bank of India’s (RBI) latest bulletin, which highlights strong macro fundamentals, easing inflation, and strategic foreign exchange management. At the same time, New Delhi is navigating shifting global trade currents — from a critical tariff truce with the US to the successful conclusion of a landmark free trade agreement with the United Kingdom. “The global economic outlook remains clouded amidst shifting policy landscapes and lingering vulnerabilities,” the RBI said in its May bulletin. “India stands well-positioned to navigate the ongoing global headwinds with confidence, ready to harness emerging opportunities and consolidate its role as a key driver of global growth.” RBI eases rates, inflation cools Retail inflation dropped to 3.16 per cent in April, marking the third consecutive month below the RBI’s 4 per cent target and the lowest level since July 2019. With inflationary pressures easing, the central bank adopted an ‘accommodative’ monetary policy stance, cutting rates for the second time in April and signalling further support to spur growth. The bulletin also warned of increasing temperature anomalies affecting vegetable prices, calling for quicker adoption of climate-resilient crops to support long-term price stability. Forex reserves surge amid rupee rally In a sign of active intervention, the RBI reported a net purchase of $14.36 billion in the spot foreign exchange market in March, reversing a $1.6 billion net sale in February. This move came as the Indian rupee appreciated over 2 per cent during the month, buoyed by a weaker US dollar and strong foreign inflows. The rupee traded between 85.39 and 87.44 per US dollar in March and stood at 85.6375 on 22 May. Meanwhile, the RBI’s net forward sale contracts stood at $84.35 billion by end-March, indicating continued efforts to manage currency volatility. IMF outlook: India to remain fastest-growing major economy The International Monetary Fund (IMF) echoed a similarly positive tone. In its latest World Economic Outlook, the IMF projected India’s economy to grow by 6.8 per cent in 2025, making it the fastest-growing major economy in the world. The Fund credited robust domestic demand, public infrastructure spending, and resilient services exports for India’s growth momentum, even as global growth remains subdued. The IMF also praised India’s efforts in maintaining macroeconomic stability, especially amid tight global financial conditions and ongoing geopolitical uncertainty. Navigating to global trade tension The RBI’s optimism comes as India recalibrates its global trade strategy. Following President Donald Trump’s 9 April announcement of a 90-day tariff pause, India is racing to clinch a trade deal with the US to prevent a punitive 26 per cent tariff on Indian exports. The pause provides a narrow window for negotiation, with New Delhi eyeing quicker access for key sectors such as pharmaceuticals, textiles, and IT services. In contrast, India has scored a major breakthrough on the western front. Earlier this month, India and the UK concluded negotiations for a long-awaited free trade agreement (FTA) — a deal in the works since January 2022. The India-UK trade pact aims to double bilateral trade from $60 billion to $120 billion by 2030. It eliminates import duties on 99 per cent of Indian goods entering the UK, granting enhanced access for sectors such as textiles, gems and jewellery, auto parts, and agriculture. In return, British firms will gain broader access to India’s fast-growing market, including in areas like legal services, education, and renewable energy. India has also ensured protection for sensitive sectors, maintaining a balance between liberalisation and domestic interests.

&nbsp;According to the Reserve Bank of India’s (RBI) latest bulletin, India is poised to weather ongoing global economic turbulence, highlighting strong macro fundamentals, easing inflation, and strategic foreign exchange management.&nbsp;

RBI says India remains resilient as global trade landscape shifts

In an interview with The Indian Express, recently appointed Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey addressed the challenges that arose under the previous leadership, particularly with respect to the handling of conflicts of interest.Pandey’s comments come just a few months after the controversial three-year tenure of his predecessor, Madhabi Puri Buch, whose term ended in February.Pandey, who took charge amid lingering questions surrounding Buch’s leadership, acknowledged that the SEBI leadership under Buch had failed to meet even “minimal expectations” in terms of transparency and disclosure.He further pointed to the lack of public disclosures regarding potential conflicts of interest and stressed the need for a systematic approach to address such issues.&nbsp;Call for disclosure framework&nbsp;One of the most significant concerns raised by Pandey was the absence of a robust disclosure framework under the previous SEBI leadership. He noted that when reviewing SEBI’s policies on conflict of interest, particularly those outlined in the 2008 document governing the chairman and the board and the employee regulations, he found “virtually no public disclosures”.“The conflict of interest in SEBI’s case is much wider. It’s a very difficult concept also. Like, how are you? Where is your thing? What is family? Where does it extend? Because virtually the listed companies are everywhere,” Pandey told The Indian Express.&nbsp;He emphasised that conflict of interest is a complex issue at SEBI, as officers may have overlapping relationships with companies that are listed in India and abroad.Pandey’s remarks come in the wake of the controversy surrounding Buch and her husband, Dhaval Buch, who were alleged to have held investments in offshore funds associated with Vinod Adani, the brother of Adani Group chairman Gautam Adani.Although both of them denied the allegations, the issue cast a shadow over SEBI’s credibility, particularly when Hindenburg Research made claims that SEBI had failed to take appropriate action due to potential conflicts of interest involving its chairperson.&nbsp;Pandey vows to tackle the ‘narrative’&nbsp;Pandey acknowledged the “narrative” that had developed around the conflict of interest issue during Buch’s tenure and stressed the need for SEBI to address it directly. He said, “If you have a problem and there are questions, you need to answer in a systematic way.”Pandey also mentioned that SEBI had set up an independent high-level committee to review the conflicts of interest of its board members, including the chairman. The committee, which includes experts from various sectors, is already at work and expected to submit a report within the next three months.Pandey hopes that the committee's findings will provide clarity and help resolve the ongoing concerns about SEBI’s internal processes.“When the framework gets ready, it will really put to rest this narrative that—we have to hide,” Pandey said. The committee’s mandate is to create a clear, transparent framework for handling conflicts of interest and recusal processes within SEBI.The new SEBI chief also stressed the importance of defining recusal procedures more clearly. He questioned whether SEBI officers should recuse themselves from making decisions if they have familial ties to individuals or companies involved in certain cases.“If SEBI officers are working, then where should they recuse, and where should they not recuse?” Pandey asked, emphasising that these processes must be well-defined, documented, and followed strictly.&nbsp;Transparency and accountability&nbsp;Pandey’s commitment to enhancing SEBI’s transparency is evident in his approach to conflict of interest policies. He explained that the committee would not only suggest guidelines for the board but also seek public input and draw on best practices from around the world.“We have suggested that an independent committee, which has got eminent people from different sides, assess and suggest a framework,” Pandey said. “This framework then comes to the board, and our board takes a view, and we will implement that framework.”The SEBI chief also made it clear that the regulator’s internal processes for handling investigations must be conducted transparently and in accordance with the law. “What we have to hide, we should hide in a manner which is actually sort of mandated. It means while you are investigating, you have to be hiding, and you have to reveal only when your investigation is complete,” he said.Pandey stressed that the framework would provide much-needed clarity, not only within SEBI but also for the broader financial markets. By addressing the conflicts of interest and ensuring rigorous disclosure practices, SEBI aims to restore public trust in its ability to effectively regulate India’s stock markets.The committee’s report is expected to address key areas of concern and outline steps for SEBI to implement a more transparent, accountable, and conflict-free framework going forward.

Pandey, who took charge amid lingering questions surrounding Buch’s leadership, acknowledged that the SEBI leadership under Buch had failed to meet even “minimal expectations” in terms of transparency and disclosure.

In an interview with The Indian Express, recently appointed Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey addressed the challenges that arose under the previous leadership, particularly with respect to the handling of conflicts of interest. Pandey’s comments come just a few months after the controversial three-year tenure of his predecessor, Madhabi Puri Buch, whose term ended in February. Pandey, who took charge amid lingering questions surrounding Buch’s leadership, acknowledged that the SEBI leadership under Buch had failed to meet even “minimal expectations” in terms of transparency and disclosure. He further pointed to the lack of public disclosures regarding potential conflicts of interest and stressed the need for a systematic approach to address such issues. Call for disclosure framework One of the most significant concerns raised by Pandey was the absence of a robust disclosure framework under the previous SEBI leadership. He noted that when reviewing SEBI’s policies on conflict of interest, particularly those outlined in the 2008 document governing the chairman and the board and the employee regulations, he found “virtually no public disclosures”. “The conflict of interest in SEBI’s case is much wider. It’s a very difficult concept also. Like, how are you? Where is your thing? What is family? Where does it extend? Because virtually the listed companies are everywhere,” Pandey told The Indian Express. He emphasised that conflict of interest is a complex issue at SEBI, as officers may have overlapping relationships with companies that are listed in India and abroad. Pandey’s remarks come in the wake of the controversy surrounding Buch and her husband, Dhaval Buch, who were alleged to have held investments in offshore funds associated with Vinod Adani, the brother of Adani Group chairman Gautam Adani. Although both of them denied the allegations, the issue cast a shadow over SEBI’s credibility, particularly when Hindenburg Research made claims that SEBI had failed to take appropriate action due to potential conflicts of interest involving its chairperson. Pandey vows to tackle the ‘narrative’ Pandey acknowledged the “narrative” that had developed around the conflict of interest issue during Buch’s tenure and stressed the need for SEBI to address it directly. He said, “If you have a problem and there are questions, you need to answer in a systematic way.” Pandey also mentioned that SEBI had set up an independent high-level committee to review the conflicts of interest of its board members, including the chairman. The committee, which includes experts from various sectors, is already at work and expected to submit a report within the next three months. Pandey hopes that the committee's findings will provide clarity and help resolve the ongoing concerns about SEBI’s internal processes. “When the framework gets ready, it will really put to rest this narrative that—we have to hide,” Pandey said. The committee’s mandate is to create a clear, transparent framework for handling conflicts of interest and recusal processes within SEBI. The new SEBI chief also stressed the importance of defining recusal procedures more clearly. He questioned whether SEBI officers should recuse themselves from making decisions if they have familial ties to individuals or companies involved in certain cases. “If SEBI officers are working, then where should they recuse, and where should they not recuse?” Pandey asked, emphasising that these processes must be well-defined, documented, and followed strictly. Transparency and accountability Pandey’s commitment to enhancing SEBI’s transparency is evident in his approach to conflict of interest policies. He explained that the committee would not only suggest guidelines for the board but also seek public input and draw on best practices from around the world. “We have suggested that an independent committee, which has got eminent people from different sides, assess and suggest a framework,” Pandey said. “This framework then comes to the board, and our board takes a view, and we will implement that framework.” The SEBI chief also made it clear that the regulator’s internal processes for handling investigations must be conducted transparently and in accordance with the law. “What we have to hide, we should hide in a manner which is actually sort of mandated. It means while you are investigating, you have to be hiding, and you have to reveal only when your investigation is complete,” he said. Pandey stressed that the framework would provide much-needed clarity, not only within SEBI but also for the broader financial markets. By addressing the conflicts of interest and ensuring rigorous disclosure practices, SEBI aims to restore public trust in its ability to effectively regulate India’s stock markets. The committee’s report is expected to address key areas of concern and outline steps for SEBI to implement a more transparent, accountable, and conflict-free framework going forward.

Pandey, who took charge amid lingering questions surrounding Buch’s leadership, acknowledged that the SEBI leadership under Buch had failed to meet even “minimal expectations” in terms of transparency and disclosure.

SEBI chief calls for transparent disclosure framework to address conflict of interest

The Supreme Court of India on May 19 strongly criticised the central government for its prolonged failure to bring a clear regulatory framework for cryptocurrencies, stating that the absence of such a framework has created a breeding ground for “misuse”.The apex court reiterated its earlier observation that unregulated Bitcoin trading is “nothing but a more polished form of Hawala”, an illegal informal money transfer system.A bench of Justices Surya Kant and N. Kotiswar Singh made these remarks while hearing a bail petition filed by Shailesh Babulal Bhatt, a Gujarat resident accused of multi-state cryptocurrency-related fraud.While the bail plea itself was not directly related to broader policy, the bench expressed grave concerns about the lack of regulation in the crypto sector. They questioned why the Enforcement Directorate (ED), the prosecuting agency, chose to arrest Bhatt after completing its probe when he was not arrested during the ongoing investigation.&nbsp;Call for regulation, not ban&nbsp;The Supreme Court reminded the government that nearly two years ago, it had sought clarity on India’s policy regarding virtual currencies. The bench emphasised that outright banning cryptocurrencies would be unwise, especially as new financial mechanisms are evolving in global trade, but stressed that some form of regulation is absolutely essential. The top court asserted that the government’s failure to regulate this space amounted to turning a “blind eye” to a pressing issue.“Nobody is saying to stop it since you have said earlier that cryptocurrency is not illegal and banning it will not be wise for the economy. Banning may be shutting your eyes to the ground reality. But what about regulating it?” Justice Kant remarked.Additional Solicitor General Aishwarya Bhati, representing the Union, sought time to obtain instructions on the matter. The Court also highlighted the practical and evidentiary challenges law enforcement faces in the absence of a legal definition or framework for crypto assets. “If tomorrow somebody asks, ‘Prove what is this asset, how are we going to prove it?’ We are not experts. Experts will have to examine it, but some steps to regulate it are necessary. We are told crypto trading is very volatile... today a Bitcoin might be worth lakhs, and tomorrow it can mean nothing,” the bench observed.Senior advocate Mukul Rohatgi, representing Bhatt, argued that Bitcoin trading is not illegal in India, citing the Supreme Court’s 2020 decision that struck down a Reserve Bank of India (RBI) circular barring banks from facilitating crypto-related transactions. He contended that Bhatt's arrest was unjustified given the absence of a law explicitly banning such activity.ASG Bhati informed the Court that an updated report on the investigation progress and the Centre’s position on cryptocurrency would be submitted by July.Currently, India imposes a flat 30 per cent tax on profits from cryptocurrency transactions and a 1 per cent tax deducted at source on every trade. However, cryptocurrencies like Bitcoin and Ethereum are neither recognised as legal tender nor banned outright.Manvinder Singh, Partner, JSA Advocates &amp; Solicitors believes that “The Supreme Court’s remark reinforces the importance of striking a balance between innovation and regulatory oversight. It reflects a broader understanding that as the crypto market continues to mature, it’s important for the legal and regulatory system to keep pace and provide a robust, future-ready framework that ensures investor protection, market integrity, and innovation.”The RBI has repeatedly warned of the risks associated with crypto investments, even as it promotes the Digital Rupee, a central bank digital currency. A draft bill to regulate cryptocurrencies was prepared in 2021 but is yet to be tabled in Parliament.This is not the first time the Supreme Court has flagged the issue. In July 2023, another bench had directed the union government to clarify whether it intended to “set up a federal agency to investigate criminal cases involving cryptocurrencies,” lamenting the lack of both a regulatory law and an expert agency to probe such matters.&nbsp;(With inputs from agencies)

SC said Center's prolonged failure to bring a clear regulatory framework for cryptocurrencies has created a breeding ground for misuse

The Supreme Court of India on May 19 strongly criticised the central government for its prolonged failure to bring a clear regulatory framework for cryptocurrencies, stating that the absence of such a framework has created a breeding ground for “misuse”. The apex court reiterated its earlier observation that unregulated Bitcoin trading is “nothing but a more polished form of Hawala”, an illegal informal money transfer system. A bench of Justices Surya Kant and N. Kotiswar Singh made these remarks while hearing a bail petition filed by Shailesh Babulal Bhatt, a Gujarat resident accused of multi-state cryptocurrency-related fraud. While the bail plea itself was not directly related to broader policy, the bench expressed grave concerns about the lack of regulation in the crypto sector. They questioned why the Enforcement Directorate (ED), the prosecuting agency, chose to arrest Bhatt after completing its probe when he was not arrested during the ongoing investigation. Call for regulation, not ban The Supreme Court reminded the government that nearly two years ago, it had sought clarity on India’s policy regarding virtual currencies. The bench emphasised that outright banning cryptocurrencies would be unwise, especially as new financial mechanisms are evolving in global trade, but stressed that some form of regulation is absolutely essential. The top court asserted that the government’s failure to regulate this space amounted to turning a “blind eye” to a pressing issue. “Nobody is saying to stop it since you have said earlier that cryptocurrency is not illegal and banning it will not be wise for the economy. Banning may be shutting your eyes to the ground reality. But what about regulating it?” Justice Kant remarked. Additional Solicitor General Aishwarya Bhati, representing the Union, sought time to obtain instructions on the matter. The Court also highlighted the practical and evidentiary challenges law enforcement faces in the absence of a legal definition or framework for crypto assets. “If tomorrow somebody asks, ‘Prove what is this asset, how are we going to prove it?’ We are not experts. Experts will have to examine it, but some steps to regulate it are necessary. We are told crypto trading is very volatile... today a Bitcoin might be worth lakhs, and tomorrow it can mean nothing,” the bench observed. Senior advocate Mukul Rohatgi, representing Bhatt, argued that Bitcoin trading is not illegal in India, citing the Supreme Court’s 2020 decision that struck down a Reserve Bank of India (RBI) circular barring banks from facilitating crypto-related transactions. He contended that Bhatt's arrest was unjustified given the absence of a law explicitly banning such activity. ASG Bhati informed the Court that an updated report on the investigation progress and the Centre’s position on cryptocurrency would be submitted by July. Currently, India imposes a flat 30 per cent tax on profits from cryptocurrency transactions and a 1 per cent tax deducted at source on every trade. However, cryptocurrencies like Bitcoin and Ethereum are neither recognised as legal tender nor banned outright. Manvinder Singh, Partner, JSA Advocates & Solicitors believes that “The Supreme Court’s remark reinforces the importance of striking a balance between innovation and regulatory oversight. It reflects a broader understanding that as the crypto market continues to mature, it’s important for the legal and regulatory system to keep pace and provide a robust, future-ready framework that ensures investor protection, market integrity, and innovation.” The RBI has repeatedly warned of the risks associated with crypto investments, even as it promotes the Digital Rupee, a central bank digital currency. A draft bill to regulate cryptocurrencies was prepared in 2021 but is yet to be tabled in Parliament. This is not the first time the Supreme Court has flagged the issue. In July 2023, another bench had directed the union government to clarify whether it intended to “set up a federal agency to investigate criminal cases involving cryptocurrencies,” lamenting the lack of both a regulatory law and an expert agency to probe such matters. (With inputs from agencies)

SC said Center's prolonged failure to bring a clear regulatory framework for cryptocurrencies has created a breeding ground for “misuse”

Supreme Court slams central government for crypto inaction

Japan's export growth continued to decelerate in April, as the ongoing US tariff measures weighed heavily on its shipments, particularly to the US, its largest trading partner.According to official data released by the Ministry of Finance, Japan's total exports grew by just 2 per cent year-on-year, matching analysts' estimates but marking a significant slowdown from March's 4 per cent increase. The slowdown highlights the growing impact of trade tensions between Japan and the US, as well as a fragile global economy.Exports to the US fell 1.8 per cent in April, marking the first drop since December 2024. The decrease was primarily driven by lower demand for key exports like automobiles, steel, and ships. Exports of motor vehicles to the US saw a sharp 4.8 per cent decline, reflecting the combined effect of a stronger yen and the US tariffs on Japanese cars.These tariffs, which were introduced in early 2025, include a 25 per cent levy on cars and a 10 per cent baseline tariff on most Japanese goods. The automotive sector, which accounts for a significant portion of Japan's exports to the US, has been particularly hard-hit by these measures.&nbsp;Rising tariffs cloud economic outlook&nbsp;Despite some growth in exports to Asia, which rose 6 per cent in April, Japan's overall trade balance swung into a deficit of ¥115.8 billion ($797 million) after recording two consecutive months of surpluses.The export slowdown comes at a precarious moment for Japan, as the country's economy had already contracted in the first quarter of 2025. The 0.7 per cent annualised contraction in GDP was largely driven by weak private consumption and a slowdown in exports.The US tariffs are expected to further strain Japan's economic prospects. While Japan has been in negotiations with the US to ease the tariffs, the chances of a significant breakthrough remain slim.Japan's chief trade negotiator, Ryosei Akazawa, is set to travel to Washington for a third round of talks, but analysts suggest that resolving the tariff dispute will be difficult without substantial concessions from both sides.Automobile exports, which account for around 28 per cent of Japan's total shipments to the United States, have been particularly vulnerable to tariff hikes. Japan exports about 1.5 million vehicles to the US annually, and the escalating duties have raised concerns among Japanese automakers about the long-term viability of their US market strategy. This uncertainty could also discourage manufacturers from making significant investments, further dampening Japan's economic recovery.&nbsp;Uncertainties lie ahead&nbsp;The broader economic implications of these trade challenges are likely to extend beyond exports. Japanese manufacturers, which are deeply integrated into global supply chains, face heightened risks from fluctuating trade policies and tariff uncertainties.With Japan already grappling with a stagnating domestic economy, any further disruptions to global trade could push the country into a technical recession. The weak export performance has also placed pressure on the Bank of Japan (BOJ), which had hoped to resume its tightening cycle in response to rising inflation and wages. However, the uncertainty surrounding tariffs and their impact on Japan's economy is expected to delay any interest rate hikes.As Japan faces an uncertain economic future, both domestic policymakers and businesses will need to adapt to the shifting global trade landscape. The resolution of tariff disputes with the US will be crucial, but the broader economic environment will continue to play a significant role in shaping Japan's recovery path.(With inputs from agencies)

Japan's total exports grew by just 2 per cent year-on-year. The slowdown highlights the growing impact of trade tensions between Japan and the US, as well as a fragile global economy.

Japan's export growth continued to decelerate in April, as the ongoing US tariff measures weighed heavily on its shipments, particularly to the US, its largest trading partner. According to official data released by the Ministry of Finance, Japan's total exports grew by just 2 per cent year-on-year, matching analysts' estimates but marking a significant slowdown from March's 4 per cent increase. The slowdown highlights the growing impact of trade tensions between Japan and the US, as well as a fragile global economy. Exports to the US fell 1.8 per cent in April, marking the first drop since December 2024. The decrease was primarily driven by lower demand for key exports like automobiles, steel, and ships. Exports of motor vehicles to the US saw a sharp 4.8 per cent decline, reflecting the combined effect of a stronger yen and the US tariffs on Japanese cars. These tariffs, which were introduced in early 2025, include a 25 per cent levy on cars and a 10 per cent baseline tariff on most Japanese goods. The automotive sector, which accounts for a significant portion of Japan's exports to the US, has been particularly hard-hit by these measures. Rising tariffs cloud economic outlook Despite some growth in exports to Asia, which rose 6 per cent in April, Japan's overall trade balance swung into a deficit of ¥115.8 billion ($797 million) after recording two consecutive months of surpluses. The export slowdown comes at a precarious moment for Japan, as the country's economy had already contracted in the first quarter of 2025. The 0.7 per cent annualised contraction in GDP was largely driven by weak private consumption and a slowdown in exports. The US tariffs are expected to further strain Japan's economic prospects. While Japan has been in negotiations with the US to ease the tariffs, the chances of a significant breakthrough remain slim. Japan's chief trade negotiator, Ryosei Akazawa, is set to travel to Washington for a third round of talks, but analysts suggest that resolving the tariff dispute will be difficult without substantial concessions from both sides. Automobile exports, which account for around 28 per cent of Japan's total shipments to the United States, have been particularly vulnerable to tariff hikes. Japan exports about 1.5 million vehicles to the US annually, and the escalating duties have raised concerns among Japanese automakers about the long-term viability of their US market strategy. This uncertainty could also discourage manufacturers from making significant investments, further dampening Japan's economic recovery. Uncertainties lie ahead The broader economic implications of these trade challenges are likely to extend beyond exports. Japanese manufacturers, which are deeply integrated into global supply chains, face heightened risks from fluctuating trade policies and tariff uncertainties. With Japan already grappling with a stagnating domestic economy, any further disruptions to global trade could push the country into a technical recession. The weak export performance has also placed pressure on the Bank of Japan (BOJ), which had hoped to resume its tightening cycle in response to rising inflation and wages. However, the uncertainty surrounding tariffs and their impact on Japan's economy is expected to delay any interest rate hikes. As Japan faces an uncertain economic future, both domestic policymakers and businesses will need to adapt to the shifting global trade landscape. The resolution of tariff disputes with the US will be crucial, but the broader economic environment will continue to play a significant role in shaping Japan's recovery path. (With inputs from agencies)

Japan's total exports grew by just 2 per cent year-on-year. The slowdown highlights the growing impact of trade tensions between Japan and the US, as well as a fragile global economy.

Japan's export growth slows amid US tariffs and global uncertainty

Britain’s inflation rate unexpectedly surged in April, rising to 3.5 per cent from 2.6 per cent in March, according to the Office for National Statistics (ONS). This marks the highest level since January 2024 and represents the sharpest monthly rise since 2022, when prices were spiralling above 10 per cent.&nbsp;A sharp spike in airfares during the Easter holidays was a key contributor, with ticket prices rising by 27.5 per cent from March, the second-largest monthly jump on record.&nbsp;&nbsp;The timing of Easter, which fell in April this year, intensified seasonal travel demand, amplifying the price surge.&nbsp;As per Reuters, economists had expected consumer price inflation to rise to 3.3 per cent, while the Bank of England (BoE) forecast 3.4 per cent. The stronger-than-expected figure complicates the central bank’s efforts to gradually bring inflation under control.<h2> Services inflation surges, rattling BoE</h2>More concerning for policymakers is the jump in services inflation, a key indicator of domestic price pressures.&nbsp;&nbsp;According to the ONS, services prices rose by 5.4 per cent year-on-year, outpacing both the BoE’s forecast of 5.0 per cent and the Reuters consensus of 4.8 per cent. On a monthly basis, services inflation rose 2.2 per cent, the highest single month increase in over three decades.&nbsp;&nbsp;This suggests that inflationary momentum remains embedded in the economy, especially in sectors like hospitality, transport, and insurance.&nbsp;The data comes amid warnings that persistent wage pressures and strong consumer demand could delay further interest rate cuts.<h2>Government reaction and policy outlook</h2>Finance Minister Rachel Reeves&nbsp;called the inflation figures “disappointing,” telling Reuters. “We are a long way from the double-digit inflation we saw under the previous administration, but I’m determined that we go further and faster to put more money in people’s pockets” as qoutes by Reuters.&nbsp; Following the data release, investors slashed the odds of a BoE rate cut in August to 40 per cent, down from 60 per cent. According to Reuters, only 35 basis points of cuts are now expected by the end of 2025.&nbsp;Patrick O’Donnell, Senior Investment Strategist at Omnis Investments, told Reuters, that “This data should call into question whether there is a cut… in August.”&nbsp;BoE Chief Economist Huw Pill also expressed caution and told Reuters that the pace of rate cuts may have been too quick in light of still-strong wage growth and inflationary stickiness. He voted to hold rates steady earlier this month and described the move as a “skip,” not a stop.<h2>Trade tensions escalate</h2>The inflation surge coincides with rising global trade tensions, placing the UK in a delicate position between major partners. US President Donald Trump, now in his second term, reintroduced 25 per cent tariffs on UK steel and aluminium exports in March 2025 — reversing earlier exemptions and reigniting trade war anxieties<a href="https://www.uksteel.org/">.&nbsp;</a> In response, UK-US negotiations were fast-tracked. By 8 May 2025, according to Reuters, the two sides struck a provisional deal: the US agreed to remove the 25 per cent metals tariffs in exchange for a 10 per cent baseline tariff on most UK goods.&nbsp; In return, the UK dropped its 20 per cent retaliatory tariff on US beef and introduced a quota for tariff-free beef imports.&nbsp; Though the deal eased immediate pressure, it underscored the fragility of the long-delayed UK-US free trade agreement, which has repeatedly stalled since Brexit.&nbsp; Trade analysts warn that Trump’s broader protectionist stance, targeting not just the UK, but also the EU and Asian markets and may drive up global import costs and further fuel UK inflation. Five years after the United Kingdom’s departure from the European Union, both parties have signed a comprehensive agreement aimed at revitalising their relationship. This deal addresses key sectors such as trade, defence, energy, and fisheries, marking a significant step in UK-EU relations.&nbsp; The agreement comes at a time when global trade dynamics are shifting, notably with the United States imposing new tariffs under President Donald Trump’s administration&nbsp;In May 2025, the UK and EU signed supplementary protocols aimed at smoothing trade flows, reducing border delays, and clarifying rules for Northern Ireland.&nbsp;&nbsp;While not a renegotiation of the core agreement, these developments are seen as an attempt to stabilise cross-Channel commerce after five years of adjustment and uncertainty.<h2>April pain likely to linger</h2>April’s inflation surge took place during what British media had dubbed “Awful April”, a month marked by higher gas, electricity, and water bills, as well as increased employer taxes — all adding to the price burden on households and businesses.&nbsp;The BoE now expects inflation to climb to 3.7 per cent by September, raising concerns that the road to price stability may be longer and bumpier than previously anticipated, as per Reuters.&nbsp;&nbsp;While some employers are reportedly beginning to scale back wage increases, the data suggest the broader cost-of-living challenge is far from over.&nbsp;&nbsp;With Trump’s tariffs, volatile energy prices, and sticky services inflation all in play, the BoE faces growing pressure to tread carefully in its monetary strategy.

Business & Economy: This marks the highest level since January 2024 and represents the sharpest monthly rise since 2022, when prices were spiralling above 10 per cent.

Britain’s inflation rate unexpectedly surged in April, rising to 3.5 per cent from 2.6 per cent in March, according to the Office for National Statistics (ONS). This marks the highest level since January 2024 and represents the sharpest monthly rise since 2022, when prices were spiralling above 10 per cent. A sharp spike in airfares during the Easter holidays was a key contributor, with ticket prices rising by 27.5 per cent from March, the second-largest monthly jump on record. The timing of Easter, which fell in April this year, intensified seasonal travel demand, amplifying the price surge. As per Reuters, economists had expected consumer price inflation to rise to 3.3 per cent, while the Bank of England (BoE) forecast 3.4 per cent. The stronger-than-expected figure complicates the central bank’s efforts to gradually bring inflation under control. Services inflation surges, rattling BoE More concerning for policymakers is the jump in services inflation, a key indicator of domestic price pressures. According to the ONS, services prices rose by 5.4 per cent year-on-year, outpacing both the BoE’s forecast of 5.0 per cent and the Reuters consensus of 4.8 per cent. On a monthly basis, services inflation rose 2.2 per cent, the highest single month increase in over three decades. This suggests that inflationary momentum remains embedded in the economy, especially in sectors like hospitality, transport, and insurance. The data comes amid warnings that persistent wage pressures and strong consumer demand could delay further interest rate cuts. Government reaction and policy outlook Finance Minister Rachel Reeves called the inflation figures “disappointing,” telling Reuters. “We are a long way from the double-digit inflation we saw under the previous administration, but I’m determined that we go further and faster to put more money in people’s pockets” as qoutes by Reuters. Following the data release, investors slashed the odds of a BoE rate cut in August to 40 per cent, down from 60 per cent. According to Reuters, only 35 basis points of cuts are now expected by the end of 2025. Patrick O’Donnell, Senior Investment Strategist at Omnis Investments, told Reuters, that “This data should call into question whether there is a cut… in August.” BoE Chief Economist Huw Pill also expressed caution and told Reuters that the pace of rate cuts may have been too quick in light of still-strong wage growth and inflationary stickiness. He voted to hold rates steady earlier this month and described the move as a “skip,” not a stop. Trade tensions escalate The inflation surge coincides with rising global trade tensions, placing the UK in a delicate position between major partners. US President Donald Trump, now in his second term, reintroduced 25 per cent tariffs on UK steel and aluminium exports in March 2025 — reversing earlier exemptions and reigniting trade war anxieties. In response, UK-US negotiations were fast-tracked. By 8 May 2025, according to Reuters, the two sides struck a provisional deal: the US agreed to remove the 25 per cent metals tariffs in exchange for a 10 per cent baseline tariff on most UK goods. In return, the UK dropped its 20 per cent retaliatory tariff on US beef and introduced a quota for tariff-free beef imports. Though the deal eased immediate pressure, it underscored the fragility of the long-delayed UK-US free trade agreement, which has repeatedly stalled since Brexit. Trade analysts warn that Trump’s broader protectionist stance, targeting not just the UK, but also the EU and Asian markets and may drive up global import costs and further fuel UK inflation. Five years after the United Kingdom’s departure from the European Union, both parties have signed a comprehensive agreement aimed at revitalising their relationship. This deal addresses key sectors such as trade, defence, energy, and fisheries, marking a significant step in UK-EU relations. The agreement comes at a time when global trade dynamics are shifting, notably with the United States imposing new tariffs under President Donald Trump’s administration In May 2025, the UK and EU signed supplementary protocols aimed at smoothing trade flows, reducing border delays, and clarifying rules for Northern Ireland. While not a renegotiation of the core agreement, these developments are seen as an attempt to stabilise cross-Channel commerce after five years of adjustment and uncertainty. April pain likely to linger April’s inflation surge took place during what British media had dubbed “Awful April”, a month marked by higher gas, electricity, and water bills, as well as increased employer taxes — all adding to the price burden on households and businesses. The BoE now expects inflation to climb to 3.7 per cent by September, raising concerns that the road to price stability may be longer and bumpier than previously anticipated, as per Reuters. While some employers are reportedly beginning to scale back wage increases, the data suggest the broader cost-of-living challenge is far from over. With Trump’s tariffs, volatile energy prices, and sticky services inflation all in play, the BoE faces growing pressure to tread carefully in its monetary strategy.

Amid global trade tension, the United Kingdom's inflation rate unexpectedly surged in April, rising to 3.5 per cent from 2.6 per cent in March, according to the Office for National Statistics (ONS).&nbsp;

UK inflation jumps to 3.5 per cent in April; Trump tariffs and trade tensions add fuel

China’s electric vehicle (EV) industry is facing significant challenges as fierce price competition, declining profit margins, and mounting costs put pressure on manufacturers.&nbsp;According to a recent report by J.P. Morgan Chase, average discounts on vehicles reached a record high of 16.8 per cent in April, nearly double the 8.3 per cent discount seen in 2024 overall. This aggressive price war has slashed profit margins for most EV makers to around 10 per cent this year, a significant decline from about 20 per cent just four years ago.The situation is worsened by the fact that only three out of more than 50 EV manufacturers in China—BYD, Li Auto, and Seres—are currently profitable. These companies, along with a handful of others, are navigating a brutally competitive market that has made it more difficult to balance development and marketing costs while maintaining any semblance of profitability.&nbsp;Small players struggling&nbsp;As the price war intensifies, many smaller EV startups are struggling to survive. With a combination of high development costs, increased marketing spend, and shrinking margins, many smaller manufacturers have yet to post a profit. The situation has led analysts to predict consolidation in the sector, with smaller players likely to be either acquired or forced out of the market altogether.In response to the mounting pressure, several of China’s four major publicly traded premium EV makers—including Nio, Xpeng, Geely’s Zeekr unit, and Stellantis-backed Leapmotor—have announced restructuring plans to stem their losses.Despite these financial challenges, the Chinese government has not been able to rein in the price war. Industry officials and the government in Beijing have called for an end to the price war, but the market has failed to respond. Even with calls for price discipline, the brutal discounts continue, and there has been little sign of a significant surge in demand for EVs.&nbsp;Exports provide a potential lifeline&nbsp;While domestic pressures remain severe, Chinese EV manufacturers have found some relief in export markets. The demand for Chinese-made electric cars abroad has been growing steadily, with EVs accounting for 33 per cent of China’s total vehicle exports in the first four months of 2025. This figure is up from around 25 per cent in the past two years. In April, pure electric and plug-in hybrid vehicles accounted for 38 per cent of the country’s outbound shipments.Analysts believe that exports could help shore up profitability for Chinese EV manufacturers in the face of fierce domestic competition.&nbsp;JPMorgan has forecast that Chinese EVs will comprise 80 per cent of China's car market by 2030, a significant leap from the 43 per cent share they held between January and April of 2025. However, even as exports rise, the path to profitability for domestic EV makers remains a challenge.&nbsp;BYD changing gears quickly&nbsp;Amid these financial pressures, BYD, China’s largest electric vehicle assembler, is attempting to stay ahead of the competition by offering advanced autonomous driving features in many of its models, including those priced as low as $9,555. BYD has rolled out its “God’s Eye” advanced driver-assistance system (ADAS) across nearly all its models priced above 100,000 yuan ($13,688), including some of its most affordable vehicles like the Seagull, which starts at just 69,800 yuan.This move, which undercuts competitors such as Tesla, has sparked excitement in the market, as analysts believe it could help BYD differentiate itself and avoid the margins squeeze currently affecting many of its rivals.&nbsp;BYD’s founder, Wang Chuanfu, has even suggested that smart driving features could become as essential as seatbelts or airbags in the future, further cementing the company's position as a leader in the EV sector. However, other manufacturers, including Xpeng, will face tremendous pressure to keep up with these advancements, especially given BYD’s ability to offer such technologies at lower price points.&nbsp;The road ahead for China's EV makers&nbsp;Despite the intense price war and declining margins, there is a clear path forward for Chinese EV makers. Experts believe that exports will be crucial for the future profitability of Chinese manufacturers. Meanwhile, the continued rise of smart driving and technological innovations from companies like BYD could help drive sales in both domestic and international markets.Nevertheless, the short-term outlook for Chinese EV manufacturers remains clouded. With most players in the sector struggling to achieve profitability, the ongoing price war shows little sign of abating, leaving many smaller firms vulnerable. As the market consolidates, it will be interesting to see whether the winners of the EV battle will be those who can offer affordable prices or those who can innovate and bring new technologies to the table.

Average discounts on vehicles in China reached a record high of 16.8 per cent in April, nearly double the 8.3 per cent discount seen in 2024 overall. This aggressive price war has slashed profit margins for most EV makers to around 10 per cent this year.

China’s electric vehicle (EV) industry is facing significant challenges as fierce price competition, declining profit margins, and mounting costs put pressure on manufacturers. According to a recent report by J.P. Morgan Chase, average discounts on vehicles reached a record high of 16.8 per cent in April, nearly double the 8.3 per cent discount seen in 2024 overall. This aggressive price war has slashed profit margins for most EV makers to around 10 per cent this year, a significant decline from about 20 per cent just four years ago. The situation is worsened by the fact that only three out of more than 50 EV manufacturers in China—BYD, Li Auto, and Seres—are currently profitable. These companies, along with a handful of others, are navigating a brutally competitive market that has made it more difficult to balance development and marketing costs while maintaining any semblance of profitability. Small players struggling As the price war intensifies, many smaller EV startups are struggling to survive. With a combination of high development costs, increased marketing spend, and shrinking margins, many smaller manufacturers have yet to post a profit. The situation has led analysts to predict consolidation in the sector, with smaller players likely to be either acquired or forced out of the market altogether. In response to the mounting pressure, several of China’s four major publicly traded premium EV makers—including Nio, Xpeng, Geely’s Zeekr unit, and Stellantis-backed Leapmotor—have announced restructuring plans to stem their losses. Despite these financial challenges, the Chinese government has not been able to rein in the price war. Industry officials and the government in Beijing have called for an end to the price war, but the market has failed to respond. Even with calls for price discipline, the brutal discounts continue, and there has been little sign of a significant surge in demand for EVs. Exports provide a potential lifeline While domestic pressures remain severe, Chinese EV manufacturers have found some relief in export markets. The demand for Chinese-made electric cars abroad has been growing steadily, with EVs accounting for 33 per cent of China’s total vehicle exports in the first four months of 2025. This figure is up from around 25 per cent in the past two years. In April, pure electric and plug-in hybrid vehicles accounted for 38 per cent of the country’s outbound shipments. Analysts believe that exports could help shore up profitability for Chinese EV manufacturers in the face of fierce domestic competition. JPMorgan has forecast that Chinese EVs will comprise 80 per cent of China's car market by 2030, a significant leap from the 43 per cent share they held between January and April of 2025. However, even as exports rise, the path to profitability for domestic EV makers remains a challenge. BYD changing gears quickly Amid these financial pressures, BYD, China’s largest electric vehicle assembler, is attempting to stay ahead of the competition by offering advanced autonomous driving features in many of its models, including those priced as low as $9,555. BYD has rolled out its “God’s Eye” advanced driver-assistance system (ADAS) across nearly all its models priced above 100,000 yuan ($13,688), including some of its most affordable vehicles like the Seagull, which starts at just 69,800 yuan. This move, which undercuts competitors such as Tesla, has sparked excitement in the market, as analysts believe it could help BYD differentiate itself and avoid the margins squeeze currently affecting many of its rivals. BYD’s founder, Wang Chuanfu, has even suggested that smart driving features could become as essential as seatbelts or airbags in the future, further cementing the company's position as a leader in the EV sector. However, other manufacturers, including Xpeng, will face tremendous pressure to keep up with these advancements, especially given BYD’s ability to offer such technologies at lower price points. The road ahead for China's EV makers Despite the intense price war and declining margins, there is a clear path forward for Chinese EV makers. Experts believe that exports will be crucial for the future profitability of Chinese manufacturers. Meanwhile, the continued rise of smart driving and technological innovations from companies like BYD could help drive sales in both domestic and international markets. Nevertheless, the short-term outlook for Chinese EV manufacturers remains clouded. With most players in the sector struggling to achieve profitability, the ongoing price war shows little sign of abating, leaving many smaller firms vulnerable. As the market consolidates, it will be interesting to see whether the winners of the EV battle will be those who can offer affordable prices or those who can innovate and bring new technologies to the table.

Average discounts on vehicles in China reached a record high of 16.8 per cent in April, nearly double the 8.3 per cent discount seen in 2024 overall. This aggressive price war has slashed profit margins for most EV makers to around 10 per cent this year.

Price cuts and declining profitability weigh on China's electric vehicle industry

US President Donald Trump’s flagship budget plan, dubbed the “big, beautiful” bill, faces stiff opposition from within his own party as Republicans remain deeply divided over its provisions. &nbsp;Despite Trump’s personal intervention on Capitol Hill on Tuesday to rally support, significant dissent persists ahead of a crucial House vote reportedly expected later this week.<h2>What is the ‘big, beautiful’ bill?</h2>&nbsp;The sprawling 1,116-page legislation aims to extend and expand the 2017 Trump tax cuts, eliminate taxes on tips and overtime, raise the SALT deduction cap from $10,000 to $30,000 for couples, and introduce new work requirements for Medicaid recipients.&nbsp;&nbsp;It also proposes rescinding green energy subsidies and increasing the child tax credit.&nbsp;The bill includes approximately $4.9 trillion in tax breaks, partially offset by $1.5 trillion in spending cuts over the next decade, according to Reuters.<h2>Four major sticking points</h2>Despite passing the committee stage, the legislation is caught in a tug-of-war between conservative hardliners demanding steeper cuts and moderates protecting their constituents’ interests. These are the four most contentious areas: &nbsp;1. How deep should the cuts go?&nbsp;A central issue is how much to reduce federal spending. The bill’s $4.9 trillion in tax breaks—partly paid for by cutting healthcare and clean energy incentives. It has also alarmed fiscal conservatives who say the reductions don’t go far enough to tackle the US’s $36 trillion national debt.&nbsp;Texas Republican Chip Roy criticised the proposal, saying, “The bill does not yet meet the moment. We can and must do better before we pass the final product,” Bloomberg reported.&nbsp;2. Medicaid work requirements spark sharp debate&nbsp;The bill proposes significant changes to Medicaid, the federal health programme for low-income Americans.&nbsp;&nbsp;Starting in 2029, able-bodied adults would need to work at least 80 hours per month or engage in community service to remain eligible. &nbsp;Hardline Republicans want these requirements to begin immediately. Congressman Ralph Norman of South Carolina and others have called for stricter enforcement and faster implementation.&nbsp;&nbsp;They also seek to bar undocumented immigrants from receiving any Medicaid benefits.&nbsp;But moderates like Missouri Senator Josh Hawley are pushing back. Writing in The New York Times, he called the cuts “morally wrong and politically suicidal,” warning that millions of constituents could lose access to essential healthcare. &nbsp;Representative Andy Harris, chairman of the House Freedom Caucus, also expressed concerns, telling Reuters that “the president, I don’t think, convinced enough people that the bill is adequate the way it is.”&nbsp;President Trump, meanwhile, has warned Republican lawmakers against imposing stricter Medicaid work requirements, stressing the need to cut “waste, fraud, and abuse” rather than benefits, the New York Post reported.&nbsp;3. State and local tax (SALT) deductions divide Republicans&nbsp;The bill raises the cap on state and local tax deductions, commonly known as SALT, from $10,000 to $30,000 for couples. However, lawmakers from high-tax states such as New York, California, and New Jersey say this doesn’t go far enough. &nbsp;In a joint statement, New York Republicans Elise Stefanik, Andrew Garbarino, Nick LaLota, and Mike Lawler called the proposal “insulting.” They are pushing for the cap to be raised to $62,000 for individuals and $124,000 for couples. &nbsp;“While I respect the president, I’m not budging on it,” Lawler told the BBC. “As it stands right now, I do not support the bill.”&nbsp;Congresswoman Nicole Malliotakis, also from New York, who was previously sceptical about the SALT provisions, said she is satisfied with the current compromise. “They’re fighting for their districts, and they should be, but when it comes time to vote for the bill, it’s get the best deal possible and vote for the bill,” she told Reuters.&nbsp;House Republican leaders are reportedly seeking a compromise to raise the SALT cap to $40,000 for individuals and $80,000 for joint filers, though this falls short of the $62,000 some lawmakers demand, Bloomberg reported.&nbsp;4. Food assistance reforms raise humanitarian concerns&nbsp;The legislation also seeks major reforms to the Supplemental Nutrition Assistance Programme (SNAP), which currently supports over 42 million Americans.&nbsp; Under the proposal, states would be required to fund 5 per cent of benefit costs and 75 per cent of administrative expenses or costs they currently do not bear. Work requirements for SNAP recipients would also be expanded, applying to individuals without dependents up to age 64 (currently capped at 54). Republicans argue this will reduce fraud and encourage employment, while Democrats claim it will push millions into food insecurity. Democratic National Committee Chair Ken Martin described the proposal as “a slap in the face” to struggling families, according to Bloomberg.<h2>Trump’s push for unity amid party divisions</h2> On Tuesday, Trump left the White House for Capitol Hill in an effort to mend fractured party support, calling the gathering “a meeting of love” with “great unity in that room” after addressing House Republicans, Reuters reported. Despite his assurances, division remains, especially over Medicaid and SALT deductions. Trump reportedly cautioned Congressman Lawler against pushing for a higher SALT cap, warning it could threaten GOP unity, Reuters added. The bill narrowly passed the House Budget Committee on Sunday with a 17-16 vote but still requires full House approval, expected on Wednesday or Thursday.&nbsp; With a narrow Republican majority and no Democratic support, the bill’s fate remains uncertain, Bloomberg reported. If it clears the House, the bill will head to the Senate, where further amendments are anticipated. Several Republican senators have already voiced concern over Medicaid cuts and the SALT deduction cap, Reuters reported.&nbsp;As the May 26 deadline approaches, President Trump is intensifying efforts to unify his party behind the bill, underscoring the need to prevent tax increases and reduce government spending, Reuters added. &nbsp;

Business & Economy: Trump’s $4.9 trillion tax plan faces backlash from Republicans over healthcare and tax deduction reforms as the House prepares for a critical vote.

US President Donald Trump’s flagship budget plan, dubbed the “big, beautiful” bill, faces stiff opposition from within his own party as Republicans remain deeply divided over its provisions. Despite Trump’s personal intervention on Capitol Hill on Tuesday to rally support, significant dissent persists ahead of a crucial House vote reportedly expected later this week. What is the ‘big, beautiful’ bill? The sprawling 1,116-page legislation aims to extend and expand the 2017 Trump tax cuts, eliminate taxes on tips and overtime, raise the SALT deduction cap from $10,000 to $30,000 for couples, and introduce new work requirements for Medicaid recipients. It also proposes rescinding green energy subsidies and increasing the child tax credit. The bill includes approximately $4.9 trillion in tax breaks, partially offset by $1.5 trillion in spending cuts over the next decade, according to Reuters. Four major sticking points Despite passing the committee stage, the legislation is caught in a tug-of-war between conservative hardliners demanding steeper cuts and moderates protecting their constituents’ interests. These are the four most contentious areas: 1. How deep should the cuts go? A central issue is how much to reduce federal spending. The bill’s $4.9 trillion in tax breaks—partly paid for by cutting healthcare and clean energy incentives. It has also alarmed fiscal conservatives who say the reductions don’t go far enough to tackle the US’s $36 trillion national debt. Texas Republican Chip Roy criticised the proposal, saying, “The bill does not yet meet the moment. We can and must do better before we pass the final product,” Bloomberg reported. 2. Medicaid work requirements spark sharp debate The bill proposes significant changes to Medicaid, the federal health programme for low-income Americans. Starting in 2029, able-bodied adults would need to work at least 80 hours per month or engage in community service to remain eligible. Hardline Republicans want these requirements to begin immediately. Congressman Ralph Norman of South Carolina and others have called for stricter enforcement and faster implementation. They also seek to bar undocumented immigrants from receiving any Medicaid benefits. But moderates like Missouri Senator Josh Hawley are pushing back. Writing in The New York Times, he called the cuts “morally wrong and politically suicidal,” warning that millions of constituents could lose access to essential healthcare. Representative Andy Harris, chairman of the House Freedom Caucus, also expressed concerns, telling Reuters that “the president, I don’t think, convinced enough people that the bill is adequate the way it is.” President Trump, meanwhile, has warned Republican lawmakers against imposing stricter Medicaid work requirements, stressing the need to cut “waste, fraud, and abuse” rather than benefits, the New York Post reported. 3. State and local tax (SALT) deductions divide Republicans The bill raises the cap on state and local tax deductions, commonly known as SALT, from $10,000 to $30,000 for couples. However, lawmakers from high-tax states such as New York, California, and New Jersey say this doesn’t go far enough. In a joint statement, New York Republicans Elise Stefanik, Andrew Garbarino, Nick LaLota, and Mike Lawler called the proposal “insulting.” They are pushing for the cap to be raised to $62,000 for individuals and $124,000 for couples. “While I respect the president, I’m not budging on it,” Lawler told the BBC. “As it stands right now, I do not support the bill.” Congresswoman Nicole Malliotakis, also from New York, who was previously sceptical about the SALT provisions, said she is satisfied with the current compromise. “They’re fighting for their districts, and they should be, but when it comes time to vote for the bill, it’s get the best deal possible and vote for the bill,” she told Reuters. House Republican leaders are reportedly seeking a compromise to raise the SALT cap to $40,000 for individuals and $80,000 for joint filers, though this falls short of the $62,000 some lawmakers demand, Bloomberg reported. 4. Food assistance reforms raise humanitarian concerns The legislation also seeks major reforms to the Supplemental Nutrition Assistance Programme (SNAP), which currently supports over 42 million Americans. Under the proposal, states would be required to fund 5 per cent of benefit costs and 75 per cent of administrative expenses or costs they currently do not bear. Work requirements for SNAP recipients would also be expanded, applying to individuals without dependents up to age 64 (currently capped at 54). Republicans argue this will reduce fraud and encourage employment, while Democrats claim it will push millions into food insecurity. Democratic National Committee Chair Ken Martin described the proposal as “a slap in the face” to struggling families, according to Bloomberg. Trump’s push for unity amid party divisions On Tuesday, Trump left the White House for Capitol Hill in an effort to mend fractured party support, calling the gathering “a meeting of love” with “great unity in that room” after addressing House Republicans, Reuters reported. Despite his assurances, division remains, especially over Medicaid and SALT deductions. Trump reportedly cautioned Congressman Lawler against pushing for a higher SALT cap, warning it could threaten GOP unity, Reuters added. The bill narrowly passed the House Budget Committee on Sunday with a 17-16 vote but still requires full House approval, expected on Wednesday or Thursday. With a narrow Republican majority and no Democratic support, the bill’s fate remains uncertain, Bloomberg reported. If it clears the House, the bill will head to the Senate, where further amendments are anticipated. Several Republican senators have already voiced concern over Medicaid cuts and the SALT deduction cap, Reuters reported. As the May 26 deadline approaches, President Trump is intensifying efforts to unify his party behind the bill, underscoring the need to prevent tax increases and reduce government spending, Reuters added.

US President Donald Trump’s massive 1,100-page ‘big beautiful’ bill aims to revive his 2017 tax agenda but has exposed sharp divides within the GOP over Medicaid work rules, SALT caps, and food aid reforms.

What is Trump’s ‘big beautiful’ bill that’s dividing Republicans?

Elon Musk, the world’s richest person, has indicated that he plans to scale back his political donations in the future, marking a significant shift in his previously high-profile role as a financial backer of Republican causes, including President Donald Trump.Speaking during a video interview at the Qatar Economic Forum, Musk announced that he would be doing “a lot less” political spending going forward, citing that he had “done enough” in the political arena.Musk’s comments, made on May 20, come after a year of extensive political donations, where he contributed more than $250 million in support of Trump’s 2024 presidential campaign, as well as Republican-backed causes.His political influence peaked with his involvement in various election campaigns, including a $25 million donation in a bid to sway the Wisconsin Supreme Court race. However, the political strategy backfired when Musk’s chosen candidate lost, and his growing influence became a liability, leading some Republicans to question the billionaire’s impact.&nbsp;Focus shifts to Tesla&nbsp;Musk’s remarks signal a retreat from the political stage as he turns his attention back to his business interests, particularly Tesla. He emphasised that he was committed to the electric vehicle company for at least another five years, despite ongoing challenges.Tesla’s stock has been under pressure, down 14 per cent this year, and sales have been in decline, particularly in Europe. However, Musk remains optimistic, stating that Tesla’s sales are “doing well” and that he doesn’t anticipate any “meaningful sales shortfall”. His reassurance that “it’s already turned around” comes despite the public concerns over Tesla’s performance in key markets.Musk also downplayed fears that his political activities had damaged Tesla’s brand, particularly among left-leaning consumers. He claimed that while some buyers had turned away from the company due to his political affiliations, Tesla had gained support from other demographics, particularly those on the political right.The CEO made it clear that he was not bothered by any negative media coverage against his companies. He criticised the protesters, calling their actions “evil” and stating that many would face prison time for vandalising Tesla’s property.As Musk navigates the public backlash, his focus on maintaining control over Tesla’s future is evident. He reiterated that his interest in owning more shares of the company was not driven by financial gain but by a desire for greater authority in shaping its direction. “It’s not a money thing. It’s a reasonable control thing,” Musk said.&nbsp;Future plans&nbsp;While Musk’s attention remains on Tesla, his other major business, SpaceX, also continues to perform well. Musk spoke about the possibility of spinning off the Starlink satellite internet business but made it clear that he was in no rush to do so.He acknowledged that going public could raise capital but would come with significant overhead costs and the potential for lawsuits. Musk also touched on his role in government initiatives, particularly the Department of Government Efficiency (DOGE), where he has faced both praise and criticism. While Musk defended the department’s efforts, he acknowledged that its influence over federal spending had been limited.Musk's relationship with the political sphere has clearly evolved. Once a key ally to Trump, he now says he plans to spend less on political causes unless a compelling reason arises in the future.“If I see a reason to do political spending in the future, I will do it,” Musk stated, although he seemed uninterested in pursuing further political donations at the moment. His pivot away from politics marks a noticeable shift from his earlier zeal for using his wealth and influence to shape the political landscape.&nbsp;Critique of critics&nbsp;During the same interview, Musk took aim at critics such as Microsoft co-founder Bill Gates, who had questioned Musk’s political spending and the impact of his cost-cutting measures. Musk denied that his spending cuts would harm vulnerable populations, a point raised by Gates in recent interviews. He also lashed out at the media, accusing them of undermining his leadership and distorting his intentions.Despite the controversy surrounding his political and business activities, Musk remains confident in his future leadership role at Tesla and his ability to navigate the challenges ahead. As he continues to manage multiple high-profile ventures, the billionaire appears to be focusing on a balance between his corporate responsibilities and a reduced political footprint.

Musk’s come after a year of extensive political donations, where he contributed more than $250 million in support of Trump’s 2024 presidential campaign, as well as Republican-backed causes.

Elon Musk, the world’s richest person, has indicated that he plans to scale back his political donations in the future, marking a significant shift in his previously high-profile role as a financial backer of Republican causes, including President Donald Trump. Speaking during a video interview at the Qatar Economic Forum, Musk announced that he would be doing “a lot less” political spending going forward, citing that he had “done enough” in the political arena. Musk’s comments, made on May 20, come after a year of extensive political donations, where he contributed more than $250 million in support of Trump’s 2024 presidential campaign, as well as Republican-backed causes. His political influence peaked with his involvement in various election campaigns, including a $25 million donation in a bid to sway the Wisconsin Supreme Court race. However, the political strategy backfired when Musk’s chosen candidate lost, and his growing influence became a liability, leading some Republicans to question the billionaire’s impact. Focus shifts to Tesla Musk’s remarks signal a retreat from the political stage as he turns his attention back to his business interests, particularly Tesla. He emphasised that he was committed to the electric vehicle company for at least another five years, despite ongoing challenges. Tesla’s stock has been under pressure, down 14 per cent this year, and sales have been in decline, particularly in Europe. However, Musk remains optimistic, stating that Tesla’s sales are “doing well” and that he doesn’t anticipate any “meaningful sales shortfall”. His reassurance that “it’s already turned around” comes despite the public concerns over Tesla’s performance in key markets. Musk also downplayed fears that his political activities had damaged Tesla’s brand, particularly among left-leaning consumers. He claimed that while some buyers had turned away from the company due to his political affiliations, Tesla had gained support from other demographics, particularly those on the political right. The CEO made it clear that he was not bothered by any negative media coverage against his companies. He criticised the protesters, calling their actions “evil” and stating that many would face prison time for vandalising Tesla’s property. As Musk navigates the public backlash, his focus on maintaining control over Tesla’s future is evident. He reiterated that his interest in owning more shares of the company was not driven by financial gain but by a desire for greater authority in shaping its direction. “It’s not a money thing. It’s a reasonable control thing,” Musk said. Future plans While Musk’s attention remains on Tesla, his other major business, SpaceX, also continues to perform well. Musk spoke about the possibility of spinning off the Starlink satellite internet business but made it clear that he was in no rush to do so. He acknowledged that going public could raise capital but would come with significant overhead costs and the potential for lawsuits. Musk also touched on his role in government initiatives, particularly the Department of Government Efficiency (DOGE), where he has faced both praise and criticism. While Musk defended the department’s efforts, he acknowledged that its influence over federal spending had been limited. Musk's relationship with the political sphere has clearly evolved. Once a key ally to Trump, he now says he plans to spend less on political causes unless a compelling reason arises in the future. “If I see a reason to do political spending in the future, I will do it,” Musk stated, although he seemed uninterested in pursuing further political donations at the moment. His pivot away from politics marks a noticeable shift from his earlier zeal for using his wealth and influence to shape the political landscape. Critique of critics During the same interview, Musk took aim at critics such as Microsoft co-founder Bill Gates, who had questioned Musk’s political spending and the impact of his cost-cutting measures. Musk denied that his spending cuts would harm vulnerable populations, a point raised by Gates in recent interviews. He also lashed out at the media, accusing them of undermining his leadership and distorting his intentions. Despite the controversy surrounding his political and business activities, Musk remains confident in his future leadership role at Tesla and his ability to navigate the challenges ahead. As he continues to manage multiple high-profile ventures, the billionaire appears to be focusing on a balance between his corporate responsibilities and a reduced political footprint.

Musk’s come after a year of extensive political donations, where he contributed more than $250 million in support of Trump’s 2024 presidential campaign, as well as Republican-backed causes.

Elon Musk plans to cut back political spending, shifts focus to Tesla

Beijing has issued a stern warning to companies and individuals who implement recent US restrictions targeting Chinese AI chips, threatening legal consequences as the tech standoff between the two economic superpowers escalates. According to Reuters, China’s Commerce Ministry stated that those enforcing the latest US guidance on chip usage may face “corresponding legal liabilities”. The ministry accused the United States of enacting “discriminatory restrictive measures” against Chinese technology firms.&nbsp;The warning follows new US guidance last week, advising companies against using Ascend AI chips developed by Huawei’s Shenzhen-based unit, citing potential violations of US export control laws. These chips, critical to China’s AI ambitions, are the latest flashpoint in the intensifying tech war between Washington and Beijing. &nbsp;A ministry spokesperson, quoted by Reuters, urged the US to “abide by international economic and trade rules” and to respect other nations’ right to technological progress.&nbsp;US-China chip &amp; AI tensions&nbsp;The legal threat is the latest salvo in a broader power struggle that has seen semiconductors evolve from commercial commodities to national security assets.&nbsp;As reported by the US Department of Commerce, Washington has implemented a series of restrictions aimed at limiting China’s access to advanced chipmaking tools and design software.&nbsp;&nbsp;These steps are part of a national security strategy to contain Beijing’s progress in sensitive areas like artificial intelligence, quantum computing, and cyber warfare.&nbsp;In response, Chinese state media including Xinhua have outlined government-led efforts to boost domestic semiconductor production, with billions of dollars being poured into homegrown alternatives.&nbsp; &nbsp;At the heart of this push lies Huawei’s Ascend chip series, which industry analysts at Counterpoint Research say could rival offerings from US firms like NVIDIA in the coming years.&nbsp;According to Huawei’s product data, the Ascend chips power everything from data centers to deep learning algorithms, making them central to China’s ambition to dominate the AI race. For the US, however, that dominance poses a strategic threat.&nbsp;Trump tariff fiasco&nbsp;&nbsp;The chip showdown unfolds against a backdrop of prolonged trade hostilities. President Donald Trump this year reintroduced steep tariffs on Chinese goods, reigniting fears of another full-blown trade war.&nbsp;As reported by Bloomberg, the United States had imposed a 145 per cent tariff on Chinese electric vehicles, citing unfair subsidies and market distortion. In retaliation, China’s Finance Ministry responded with 125 per cent tariffs on key US exports, including agricultural products and microchips.&nbsp;The escalation led to urgent high-level negotiations in Geneva. According to Bloomberg, the two sides have since agreed to a temporary 90-day truce, effective immediately.&nbsp;&nbsp;The US has cut tariffs on Chinese goods from 145 per cent to 30 per cent, while China has lowered its tariffs on US goods from 125 per cent to 10 per cent.&nbsp;&nbsp;These concessions were brokered during talks between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng.&nbsp;The agreement also includes the suspension of certain non-tariff retaliatory measures.&nbsp;&nbsp;However, tariffs tied to sensitive issues, such as those concerning fentanyl components and farm subsidies remain in effect.&nbsp;What lies ahead?&nbsp; &nbsp;Beijing’s threat of legal retaliation over chip restrictions suggests that even with lowered tariffs, tensions are far from resolved. The latest developments indicate that economic interdependence has taken a backseat to strategic competition. &nbsp;As both sides navigate this 90-day window, analysts warn that failure to reach broader consensus could trigger a renewed cycle of retaliatory measures, disrupting global supply chains, spooking markets, and stalling innovation.&nbsp;With global tech firms and investors watching closely, the outcome of these negotiations may well shape the future of international trade, innovation, and digital power structures for years to come.&nbsp;

Beijing legal warning comes amid the growing tech tensions as US and China agree to slash tariffs in a 90-day truce brokered in Geneva, offering temporary relief to global markets.

Beijing has issued a stern warning to companies and individuals who implement recent US restrictions targeting Chinese AI chips, threatening legal consequences as the tech standoff between the two economic superpowers escalates. According to Reuters, China’s Commerce Ministry stated that those enforcing the latest US guidance on chip usage may face “corresponding legal liabilities”. The ministry accused the United States of enacting “discriminatory restrictive measures” against Chinese technology firms. The warning follows new US guidance last week, advising companies against using Ascend AI chips developed by Huawei’s Shenzhen-based unit, citing potential violations of US export control laws. These chips, critical to China’s AI ambitions, are the latest flashpoint in the intensifying tech war between Washington and Beijing. A ministry spokesperson, quoted by Reuters, urged the US to “abide by international economic and trade rules” and to respect other nations’ right to technological progress. US-China chip & AI tensions The legal threat is the latest salvo in a broader power struggle that has seen semiconductors evolve from commercial commodities to national security assets. As reported by the US Department of Commerce, Washington has implemented a series of restrictions aimed at limiting China’s access to advanced chipmaking tools and design software. These steps are part of a national security strategy to contain Beijing’s progress in sensitive areas like artificial intelligence, quantum computing, and cyber warfare. In response, Chinese state media including Xinhua have outlined government-led efforts to boost domestic semiconductor production, with billions of dollars being poured into homegrown alternatives. At the heart of this push lies Huawei’s Ascend chip series, which industry analysts at Counterpoint Research say could rival offerings from US firms like NVIDIA in the coming years. According to Huawei’s product data, the Ascend chips power everything from data centers to deep learning algorithms, making them central to China’s ambition to dominate the AI race. For the US, however, that dominance poses a strategic threat. Trump tariff fiasco The chip showdown unfolds against a backdrop of prolonged trade hostilities. President Donald Trump this year reintroduced steep tariffs on Chinese goods, reigniting fears of another full-blown trade war. As reported by Bloomberg, the United States had imposed a 145 per cent tariff on Chinese electric vehicles, citing unfair subsidies and market distortion. In retaliation, China’s Finance Ministry responded with 125 per cent tariffs on key US exports, including agricultural products and microchips. The escalation led to urgent high-level negotiations in Geneva. According to Bloomberg, the two sides have since agreed to a temporary 90-day truce, effective immediately. The US has cut tariffs on Chinese goods from 145 per cent to 30 per cent, while China has lowered its tariffs on US goods from 125 per cent to 10 per cent. These concessions were brokered during talks between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. The agreement also includes the suspension of certain non-tariff retaliatory measures. However, tariffs tied to sensitive issues, such as those concerning fentanyl components and farm subsidies remain in effect. What lies ahead? Beijing’s threat of legal retaliation over chip restrictions suggests that even with lowered tariffs, tensions are far from resolved. The latest developments indicate that economic interdependence has taken a backseat to strategic competition. As both sides navigate this 90-day window, analysts warn that failure to reach broader consensus could trigger a renewed cycle of retaliatory measures, disrupting global supply chains, spooking markets, and stalling innovation. With global tech firms and investors watching closely, the outcome of these negotiations may well shape the future of international trade, innovation, and digital power structures for years to come.

China has threatened legal retaliation against companies complying with US chip curbs, signalling a fresh flashpoint in the US-China tech conflict.

China threatens legal action over US chip curbs amid 90-day tariff truce

Beijing condemned on Wednesday new US warnings on the use of AI chips made in China, vowing it would take steps against "bullying" efforts to restrict access to high-tech semiconductors and supply chains.Washington has sought in recent years to curb exports of state-of-the-art chips to China, concerned that they could be used to advance Beijing's military systems and otherwise undermine American dominance in AI.US President Donald Trump's administration last week rescinded some export controls on advanced computing semiconductors, answering calls by countries that said they were being shut out from crucial technology needed to develop artificial intelligence.Some US lawmakers feared the restrictions would have incentivised countries to go to China for AI chips, spurring the superpower's development of state-of-the-art technology.But Washington also unveiled fresh guidelines warning firms that using Chinese-made high-tech AI semiconductors, specifically tech giant Huawei's Ascend chips, would put them at risk of violating US export controls.In a statement Wednesday, Beijing's commerce ministry described the warnings as "typical unilateral bullying and protectionism, which seriously undermine the stability of the global semiconductor industry chain and supply chain".China accused the US of "abusing export controls to suppress and contain China"."These actions seriously harm the legitimate rights and interests of Chinese enterprises and endanger China's development interests," the commerce ministry said.It also warned that "any organisation or individual that enforces or assists in enforcing such measures" could be in violation of Chinese law.And it vowed to take "firm steps to safeguard its legitimate rights and interests" in response.The United States warned last week about the potential consequences of allowing US AI chips to be used for training Chinese AI models.The commerce department said its policy was aimed at sharing American AI technology "with trusted foreign countries around the world, while keeping the technology out of the hands of our adversaries".Previous US rules divided countries into three tiers, each with its own level of restrictions.Top-tier countries like Japan and South Korea faced no export restrictions, while countries in the second tier, which included Mexico and Portugal, saw a cap on the chips they could receive.Chipmakers including Nvidia and AMD lobbied against the tiered restrictions and saw their share prices rise when the Trump administration indicated it would rethink the rule.

"These actions seriously harm the legitimate rights and interests of Chinese enterprises and endanger China's development interests," said China's commerce ministry.

Beijing condemned on Wednesday new US warnings on the use of AI chips made in China, vowing it would take steps against "bullying" efforts to restrict access to high-tech semiconductors and supply chains. Washington has sought in recent years to curb exports of state-of-the-art chips to China, concerned that they could be used to advance Beijing's military systems and otherwise undermine American dominance in AI. US President Donald Trump's administration last week rescinded some export controls on advanced computing semiconductors, answering calls by countries that said they were being shut out from crucial technology needed to develop artificial intelligence. Some US lawmakers feared the restrictions would have incentivised countries to go to China for AI chips, spurring the superpower's development of state-of-the-art technology. But Washington also unveiled fresh guidelines warning firms that using Chinese-made high-tech AI semiconductors, specifically tech giant Huawei's Ascend chips, would put them at risk of violating US export controls. In a statement Wednesday, Beijing's commerce ministry described the warnings as "typical unilateral bullying and protectionism, which seriously undermine the stability of the global semiconductor industry chain and supply chain". China accused the US of "abusing export controls to suppress and contain China". "These actions seriously harm the legitimate rights and interests of Chinese enterprises and endanger China's development interests," the commerce ministry said. It also warned that "any organisation or individual that enforces or assists in enforcing such measures" could be in violation of Chinese law. And it vowed to take "firm steps to safeguard its legitimate rights and interests" in response. The United States warned last week about the potential consequences of allowing US AI chips to be used for training Chinese AI models. The commerce department said its policy was aimed at sharing American AI technology "with trusted foreign countries around the world, while keeping the technology out of the hands of our adversaries". Previous US rules divided countries into three tiers, each with its own level of restrictions. Top-tier countries like Japan and South Korea faced no export restrictions, while countries in the second tier, which included Mexico and Portugal, saw a cap on the chips they could receive. Chipmakers including Nvidia and AMD lobbied against the tiered restrictions and saw their share prices rise when the Trump administration indicated it would rethink the rule.

"These actions seriously harm the legitimate rights and interests of Chinese enterprises and endanger China's development interests," said China's commerce ministry.

China slams US over chip warning, claims America 'abusing export controls to suppress and contain' Beijing

The International Monetary Fund (IMF) has commenced a fresh review of its $15.5 billion support programme for Ukraine, a country still reeling from over three years of war.&nbsp;&nbsp;As per Reuters, an IMF delegation arrived in Kyiv on Tuesday to conduct the eighth assessment under its four-year Extended Fund Facility (EFF) arrangement.&nbsp;&nbsp;The discussions will centre on Ukraine’s budgetary challenges, long-term economic reforms, and strategies to ensure debt sustainability.&nbsp;Ukraine’s Central Bank Governor, Andriy Pyshnyi, described the talks as “constructive and substantive”, adding that the IMF programme remains a vital source of economic resilience during the ongoing conflict.&nbsp; According to Reuters, the IMF team will also explore how Kyiv plans to fund its wartime budget, including through international assistance and domestic revenue mobilisation.&nbsp;While Ukraine has secured the financial resources needed to cover its 2025 budget deficit, estimated at nearly $38 billion, questions remain over the availability of global aid beyond this year.&nbsp;&nbsp;Most of the country’s domestic income is being used to fund defence operations, leaving Kyiv heavily dependent on Western partners to finance social and humanitarian spending.&nbsp;In addition to budgetary matters, the IMF will also assess the strength of Ukraine’s financial sector. Pyshnyi noted that talks will include improving regulations governing credit bureaus and enhancing financial market infrastructure measures seen as essential to preserving monetary stability in wartime conditions.&nbsp;Impact of war on Ukraine’s economy&nbsp;&nbsp;The IMF’s latest review comes against the backdrop of a severely weakened economy. Since Russia launched its full-scale invasion in February 2022, Ukraine’s economic output has suffered a dramatic collapse.&nbsp;&nbsp;As reported by Reuters, gross domestic product (GDP) dropped by nearly 30 per cent in the first year of the war.&nbsp;&nbsp;Although modest growth was recorded in 2023 and 2024, Ukraine’s overall economic performance remains far below pre-war levels, according to World Bank&nbsp;estimates.&nbsp;The toll of the war extends far beyond GDP figures. Millions of Ukrainians have been forced to flee their homes, either relocating abroad or becoming internally displaced.&nbsp;&nbsp;The country’s physical infrastructure has also been severely damaged, with cities, industrial areas, transport networks, and energy systems targeted by missile strikes. The Kyiv School of Economics-estimates&nbsp;the total cost of war-inflicted damage to infrastructure and housing has exceeded $150 billion.&nbsp;Once a major agricultural exporter, Ukraine has struggled to maintain its role as a global grain supplier due to damaged ports and disrupted trade routes.&nbsp;&nbsp;These supply chain blockages have fuelled inflation and weakened government revenues.&nbsp;&nbsp;Meanwhile, repeated attacks on the power grid have led to frequent electricity shortages, hindering industrial activity and daily life.&nbsp;The war has also placed Ukraine’s banking sector under immense pressure. Challenges such as rising non-performing loans, capital flight, and inflationary instability have further underlined the importance of IMF support and broader international aid.&nbsp;&nbsp;For now, financial assistance from partners remains Ukraine’s primary cushion against economic collapse.&nbsp;With international focus shifting to other geopolitical flashpoints, concerns are growing over whether donors will maintain the same level of commitment to Ukraine in 2026 and beyond.&nbsp;&nbsp;The outcome of this IMF review could play a decisive role in shaping Ukraine’s financial future, determining not only the sustainability of its public finances but also its ability to function as a stable state during wartime.

The IMF review discussion will centre on Ukraine’s budgetary challenges, long-term economic reforms, and strategies to ensure debt sustainability.

The International Monetary Fund (IMF) has commenced a fresh review of its $15.5 billion support programme for Ukraine, a country still reeling from over three years of war. As per Reuters, an IMF delegation arrived in Kyiv on Tuesday to conduct the eighth assessment under its four-year Extended Fund Facility (EFF) arrangement. The discussions will centre on Ukraine’s budgetary challenges, long-term economic reforms, and strategies to ensure debt sustainability. Ukraine’s Central Bank Governor, Andriy Pyshnyi, described the talks as “constructive and substantive”, adding that the IMF programme remains a vital source of economic resilience during the ongoing conflict. According to Reuters, the IMF team will also explore how Kyiv plans to fund its wartime budget, including through international assistance and domestic revenue mobilisation. While Ukraine has secured the financial resources needed to cover its 2025 budget deficit, estimated at nearly $38 billion, questions remain over the availability of global aid beyond this year. Most of the country’s domestic income is being used to fund defence operations, leaving Kyiv heavily dependent on Western partners to finance social and humanitarian spending. In addition to budgetary matters, the IMF will also assess the strength of Ukraine’s financial sector. Pyshnyi noted that talks will include improving regulations governing credit bureaus and enhancing financial market infrastructure measures seen as essential to preserving monetary stability in wartime conditions. Impact of war on Ukraine’s economy The IMF’s latest review comes against the backdrop of a severely weakened economy. Since Russia launched its full-scale invasion in February 2022, Ukraine’s economic output has suffered a dramatic collapse. As reported by Reuters, gross domestic product (GDP) dropped by nearly 30 per cent in the first year of the war. Although modest growth was recorded in 2023 and 2024, Ukraine’s overall economic performance remains far below pre-war levels, according to World Bank estimates. The toll of the war extends far beyond GDP figures. Millions of Ukrainians have been forced to flee their homes, either relocating abroad or becoming internally displaced. The country’s physical infrastructure has also been severely damaged, with cities, industrial areas, transport networks, and energy systems targeted by missile strikes. The Kyiv School of Economics-estimates the total cost of war-inflicted damage to infrastructure and housing has exceeded $150 billion. Once a major agricultural exporter, Ukraine has struggled to maintain its role as a global grain supplier due to damaged ports and disrupted trade routes. These supply chain blockages have fuelled inflation and weakened government revenues. Meanwhile, repeated attacks on the power grid have led to frequent electricity shortages, hindering industrial activity and daily life. The war has also placed Ukraine’s banking sector under immense pressure. Challenges such as rising non-performing loans, capital flight, and inflationary instability have further underlined the importance of IMF support and broader international aid. For now, financial assistance from partners remains Ukraine’s primary cushion against economic collapse. With international focus shifting to other geopolitical flashpoints, concerns are growing over whether donors will maintain the same level of commitment to Ukraine in 2026 and beyond. The outcome of this IMF review could play a decisive role in shaping Ukraine’s financial future, determining not only the sustainability of its public finances but also its ability to function as a stable state during wartime.

According to Reuters, The International Monetary Fund (IMF) has delegation arrived in Kyiv on Tuesday to commenced a fresh review of its $15.5 billion support programme for Ukraine.&nbsp;

IMF launches key review of Ukraine’s $15.5 billion loan as war-hit economy faces deepening strain

China’s smartphone exports to the US have plunged to their lowest level since 2011, reflecting a dramatic fallout from escalating trade tensions and renewed tariff threats.&nbsp;&nbsp;As global electronics supply chains recalibrate, India is fast emerging as the new pivot point in the tech manufacturing ecosystem.&nbsp;China’s smartphone exports to US declines&nbsp; In April 2025, China’s mobile phone shipments to the US plummeted 72 per cent year-on-year to $688.5 million, the lowest monthly figure since June 2011, according to China’s General Administration of Customs, as reported by Bloomberg and Trade Data Monitor.&nbsp;&nbsp;This collapse outpaced the 21 per cent overall drop in Chinese exports to the US in the same period, underscoring how high-tech goods are being disproportionately impacted.&nbsp;New data shows that smartphones led the decline in export value in April 2025, with a month-on-month drop of $1.8 billion. Other top tech categories saw steep falls as well:&nbsp;Top 10 Product Export Drops from China to US (April 2025, MoM change):&nbsp;<figure class="table"><table><tbody><tr><td>Product</td><td>Decline ($ Million)</td></tr><tr><td>Smartphones</td><td>-1800.0</td></tr><tr><td>Laptops</td><td>-260.0</td></tr><tr><td>Solid State Disks (SSD)</td><td>-156.9</td></tr><tr><td>Video Game Consoles</td><td>-135.9</td></tr><tr><td>Optical Communication Modules</td><td>-87.0</td></tr><tr><td>Plastic Products</td><td>-86.7</td></tr><tr><td>Toys</td><td>-80.9</td></tr><tr><td>PC Monitors</td><td>-79.9</td></tr><tr><td>Plastic Tableware &amp; Kitchenware</td><td>-73.7</td></tr><tr><td>Wireless Headphones</td><td>-63.6</td></tr></tbody></table></figure>(Source: China’s General Administration of Customs, Trade Data Monitor)&nbsp;US-China trade war saga&nbsp; The Trump administration has imposed tariffs of up to 145 per cent on select Chinese goods, including mobile phones and electronics, aiming to “protect American industry” and correct trade imbalances. However, analysts argue the levies are disrupting global tech supply chains, raising costs for US consumers, and forcing companies to rethink manufacturing strategies. According to Bloomberg, investors fear this new wave of tariffs could reignite a full-blown global trade war, decimating industries, and triggering inflation across key consumer markets. In a tit-for-tat response, China has rolled out its own reciprocal tariffs, targeting US exports like liquid petroleum gas, soybeans, gas turbines, and semiconductor machinery.&nbsp; These items were among the top American goods exported to China last year. Meanwhile, high-level trade negotiations in Geneva have hit a wall, with Beijing accusing Washington of sabotaging progress by announcing fresh sanctions on Huawei Technologies Co.’s AI chip units, just as the talks were underway. Both sides have agreed to a 90-day pause on new tariffs, but the underlying tensions remain unresolved. Analysts say the truce may only be “temporary relief, not a breakthrough.” The stakes are massive. In 2024, US-China bilateral trade totaled $690 billion, with smartphones, laptops, and lithium-ion batteries topping the list of US imports from China, according to Trade Data Monitor. That flow is now under direct threat. Tariff-led uncertainty is causing companies to hedge their bets—and China’s smartphone export data is one of the clearest signs yet. India emerges as the big winner As the US and China clash, India is emerging as a strategic alternative in global electronics manufacturing. Apple Inc. is accelerating its shift of iPhone production to India.&nbsp; According to China’s General Administration of Customs, the value of smartphone component exports from China to India has roughly quadrupled over the past year. India now hosts Apple’s largest iPhone production base outside of China, serving as a key assembly hub. More parts are being shipped from China to India, then exported to global markets including the US to bypass tariff penalties. But Trump has pushed back on this workaround, publicly urging Apple to “bring iPhone manufacturing home.” However, experts point out that iPhones have never been made in the US, and the infrastructure needed for such a shift is still years away. The 14-year low in smartphone exports signals more than just a trade slowdown, it represents a strategic decoupling in tech.&nbsp;&nbsp;With tariffs rising, trust fading, and sanctions increasing, the smartphone war could be just the beginning of a broader economic cold war.&nbsp;

The decline in smartphone export reflects a dramatic fallout from escalating trade tensions and renewed tariff threats. 

China’s smartphone exports to the US have plunged to their lowest level since 2011, reflecting a dramatic fallout from escalating trade tensions and renewed tariff threats. As global electronics supply chains recalibrate, India is fast emerging as the new pivot point in the tech manufacturing ecosystem. China’s smartphone exports to US declines In April 2025, China’s mobile phone shipments to the US plummeted 72 per cent year-on-year to $688.5 million, the lowest monthly figure since June 2011, according to China’s General Administration of Customs, as reported by Bloomberg and Trade Data Monitor. This collapse outpaced the 21 per cent overall drop in Chinese exports to the US in the same period, underscoring how high-tech goods are being disproportionately impacted. New data shows that smartphones led the decline in export value in April 2025, with a month-on-month drop of $1.8 billion. Other top tech categories saw steep falls as well: Top 10 Product Export Drops from China to US (April 2025, MoM change): Product Decline ($ Million) Smartphones -1800.0 Laptops -260.0 Solid State Disks (SSD) -156.9 Video Game Consoles -135.9 Optical Communication Modules -87.0 Plastic Products -86.7 Toys -80.9 PC Monitors -79.9 Plastic Tableware & Kitchenware -73.7 Wireless Headphones -63.6 (Source: China’s General Administration of Customs, Trade Data Monitor) US-China trade war saga The Trump administration has imposed tariffs of up to 145 per cent on select Chinese goods, including mobile phones and electronics, aiming to “protect American industry” and correct trade imbalances. However, analysts argue the levies are disrupting global tech supply chains, raising costs for US consumers, and forcing companies to rethink manufacturing strategies. According to Bloomberg, investors fear this new wave of tariffs could reignite a full-blown global trade war, decimating industries, and triggering inflation across key consumer markets. In a tit-for-tat response, China has rolled out its own reciprocal tariffs, targeting US exports like liquid petroleum gas, soybeans, gas turbines, and semiconductor machinery. These items were among the top American goods exported to China last year. Meanwhile, high-level trade negotiations in Geneva have hit a wall, with Beijing accusing Washington of sabotaging progress by announcing fresh sanctions on Huawei Technologies Co.’s AI chip units, just as the talks were underway. Both sides have agreed to a 90-day pause on new tariffs, but the underlying tensions remain unresolved. Analysts say the truce may only be “temporary relief, not a breakthrough.” The stakes are massive. In 2024, US-China bilateral trade totaled $690 billion, with smartphones, laptops, and lithium-ion batteries topping the list of US imports from China, according to Trade Data Monitor. That flow is now under direct threat. Tariff-led uncertainty is causing companies to hedge their bets—and China’s smartphone export data is one of the clearest signs yet. India emerges as the big winner As the US and China clash, India is emerging as a strategic alternative in global electronics manufacturing. Apple Inc. is accelerating its shift of iPhone production to India. According to China’s General Administration of Customs, the value of smartphone component exports from China to India has roughly quadrupled over the past year. India now hosts Apple’s largest iPhone production base outside of China, serving as a key assembly hub. More parts are being shipped from China to India, then exported to global markets including the US to bypass tariff penalties. But Trump has pushed back on this workaround, publicly urging Apple to “bring iPhone manufacturing home.” However, experts point out that iPhones have never been made in the US, and the infrastructure needed for such a shift is still years away. The 14-year low in smartphone exports signals more than just a trade slowdown, it represents a strategic decoupling in tech. With tariffs rising, trust fading, and sanctions increasing, the smartphone war could be just the beginning of a broader economic cold war.

Amid global trade tension due to Trump tariff, China’s smartphone exports to the US have plunged to their lowest level since 2011.&nbsp;

China’s smartphone exports to US crash to 14-year low amid trade war