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

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

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

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

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

Canada’s Prime Minister Mark Carney said on Thursday that Ottawa will “adjust” its 25 per cent counter tariffs on US steel and aluminum in response to a doubling of US levies if a deal on bilateral trade is not reached within 30 days. “Canada will adjust its existing counter tariffs on US steel and aluminum products on the 21st of July, at the end of that 30-day period,” Carney said. Carney also announced new measures to help stabilize Canada’s steel and aluminum sectors that have been hit by US President Donald Trump’s tariffs, as exports have gone down and job losses are up.&nbsp;&nbsp;The new federal programme includes a quota on foreign steel, which means there will be curbs on steel imports.&nbsp;Carney said Canada’s counter-tariffs on US steel and aluminum products would go up—or down, depending on the negotiations with Trump—on July 21.&nbsp;Trump hiked the US tariff rate on steel and aluminum from 25 per cent to 50 per cent earlier this month, but Carney did not announce any countermeasures since the talks were already on.&nbsp;Carney and Trump had decided to strike a trade deal within a month during their meeting at the G7 summit.The two leaders spoke one-on-one for about 30 minutes. After taking a few questions from reporters, the meeting continued with other officials from both countries for a further half-hour. They also discussed issues including critical minerals, border security, and possible areas of cooperation on defence, according to a statement from Carney’s office.“We agreed to pursue negotiations toward a deal within the coming 30 days,” Carney said in a post on X on Monday afternoon.&nbsp;Trump told reporters that he and Carney still have differences over policy but that a trade deal was “achievable” in the coming weeks. The president has directed his team to make the best possible deal as quickly as possible, said a White House official.

Carney and Trump had decided to strike a trade deal within a month during their meeting at the G7 summit. The two leaders spoke one-on-one for about 30 minutes. “We agreed to pursue negotiations toward a deal within the coming 30 days,” Carney said later.

Canada’s Prime Minister Mark Carney said on Thursday that Ottawa will “adjust” its 25 per cent counter tariffs on US steel and aluminum in response to a doubling of US levies if a deal on bilateral trade is not reached within 30 days. “Canada will adjust its existing counter tariffs on US steel and aluminum products on the 21st of July, at the end of that 30-day period,” Carney said. Carney also announced new measures to help stabilize Canada’s steel and aluminum sectors that have been hit by US President Donald Trump’s tariffs, as exports have gone down and job losses are up. The new federal programme includes a quota on foreign steel, which means there will be curbs on steel imports. Carney said Canada’s counter-tariffs on US steel and aluminum products would go up—or down, depending on the negotiations with Trump—on July 21. Trump hiked the US tariff rate on steel and aluminum from 25 per cent to 50 per cent earlier this month, but Carney did not announce any countermeasures since the talks were already on. Carney and Trump had decided to strike a trade deal within a month during their meeting at the G7 summit. The two leaders spoke one-on-one for about 30 minutes. After taking a few questions from reporters, the meeting continued with other officials from both countries for a further half-hour. They also discussed issues including critical minerals, border security, and possible areas of cooperation on defence, according to a statement from Carney’s office. “We agreed to pursue negotiations toward a deal within the coming 30 days,” Carney said in a post on X on Monday afternoon. Trump told reporters that he and Carney still have differences over policy but that a trade deal was “achievable” in the coming weeks. The president has directed his team to make the best possible deal as quickly as possible, said a White House official.

Carney and Trump had decided to strike a trade deal within a month during their meeting at the G7 summit. The two leaders spoke one-on-one for about 30 minutes. “We agreed to pursue negotiations toward a deal within the coming 30 days,” Carney said later.

Carney says Canada will ‘adjust’ counter tariffs on US metals if no deal in 30 days

Japan’s fragile recovery has hit another roadblock. The country’s exports fell for the first time in eight months in May 2025, raising fears of a technical recession amid a widening trade deficit, falling auto shipments, and escalating US tariff pressure.&nbsp;Official data from Japan’s Ministry of Finance, as reported by Reuters, shows that merchandise exports shrank 1.7 per cent year-on-year in May, missing market expectations of a steeper 3.7 per cent decline. The contraction was led by a slump in car, steel, and mineral fuel shipments.&nbsp;At the same time, imports dropped 7.7 per cent, primarily due to lower crude oil and coal purchases, resulting in a trade deficit of ¥637.6 billion ($4.4 billion), the second consecutive monthly shortfall.<h2>US tariffs rattle Japan’s top export sectors</h2>The latest export slowdown comes just weeks after US President Donald Trump doubled down on a protectionist trade agenda, imposing a 25 per cent tariff on Japanese car and auto part imports and raising the levy on steel and aluminium to 50 per cent.&nbsp;The Trump administration also announced a baseline 10 per cent tariff on all Japanese goods, which is set to rise to 24 per cent on July 9 unless a deal is reached. Negotiations between Trump and Japanese Prime Minister Shigeru Ishiba during the G7 summit failed to produce a breakthrough.&nbsp;As a result, exports to the United States plunged 11.1 per cent in May, with car shipments alone falling 24.7 per cent year-on-year. Japan’s trade surplus with the US narrowed to ¥451.7 billion, making it a likely target in Trump’s “reciprocal trade” policy push.&nbsp;“The tariff hit could shave nearly 1 percentage point off Japan’s GDP if all proposed duties take effect,” warned the Japan Research Institute, as quoted by Reuters.<h2>Trade data at a glance</h2>Below is a monthly breakdown of Japan’s year-on-year export growth from January 2023 to May 2025, based on Ministry of Finance data visualised by Bloomberg.&nbsp;&nbsp;The chart illustrates a clear trajectory in Japan’s export performance over the past two years. From late 2023 to mid-2024, exports showed strong year-on-year growth, peaking notably in November–December 2023 and again in May 2024.&nbsp;&nbsp;Economists suggest this surge was likely driven by Japanese firms front-loading shipments in anticipation of looming US tariffs. However, the momentum began to fade in the second half of 2024, with exports slipping into negative territory in September 2024.&nbsp;&nbsp;Although there was a brief recovery in the months that followed, the trend reversed once again by May 2025. That month marked a 1.7 per cent decline in exports, ending an eight-month stretch of expansion and confirming that the impact of US tariffs—previously obscured by early stockpiling—has started to bite into Japan’s trade flows. &nbsp;

Japan Export - Data compiled from Bloomberg chart sourced via Japan Ministry of Finance

<h2>China, Europe, and global trade shifts</h2>Japan’s export troubles aren’t confined to the US. Shipments to China, the country’s largest trading partner, fell 8.8 per cent in May, as demand for industrial goods and electronic components weakened. Exports to Europe, however, rose 4.9 per cent.&nbsp;According to Reuters, the earlier spike in US-bound shipments this year was partly driven by firms rushing to beat Trump’s tariff deadlines. But with that buffer now fading, Japan’s trade numbers are showing the full impact of US duties.<h2>Recession fears return</h2>With exports falling, a wide trade deficit, and consumption still weak, Japan risks slipping into a technical recession defined as two straight quarters of negative growth. The economy had already contracted in Q1 2025 due to sluggish domestic demand.&nbsp;The outlook complicates the Bank of Japan’s cautious policy pivot. On Tuesday, the BoJ held interest rates steady at 0.5 per cent, its highest level since 2007, but slowed its pace of bond tapering, citing global risks including Middle East conflict and trade uncertainty.&nbsp;Economists say rising tariffs and falling exports could force policymakers to delay further tightening, with the BoJ’s ultra-loose decade-long policy still casting a long shadow.<h2>What’s at stake</h2>Japan exported ¥21 trillion worth of goods to the United States in 2024, with automobiles accounting for 28 per cent of that total.&nbsp;&nbsp;With Trump’s reciprocal tariff deadline looming, Tokyo faces mounting pressure to protect its flagship industries—or risk deeper economic fallout in the second half of 2025.&nbsp;(With inputs from the agencies) &nbsp;

Japan imports decreased by 7.7%, leading to a trade deficit of ¥637.6 billion. US tariffs, recently intensified by President Trump, caused exports to the US to fall 11.1%, suggesting potential GDP impacts from proposed duties, as negotiations yielded no resolutions.

Japan’s fragile recovery has hit another roadblock. The country’s exports fell for the first time in eight months in May 2025, raising fears of a technical recession amid a widening trade deficit, falling auto shipments, and escalating US tariff pressure. Official data from Japan’s Ministry of Finance, as reported by Reuters, shows that merchandise exports shrank 1.7 per cent year-on-year in May, missing market expectations of a steeper 3.7 per cent decline. The contraction was led by a slump in car, steel, and mineral fuel shipments. At the same time, imports dropped 7.7 per cent, primarily due to lower crude oil and coal purchases, resulting in a trade deficit of ¥637.6 billion ($4.4 billion), the second consecutive monthly shortfall. US tariffs rattle Japan’s top export sectors The latest export slowdown comes just weeks after US President Donald Trump doubled down on a protectionist trade agenda, imposing a 25 per cent tariff on Japanese car and auto part imports and raising the levy on steel and aluminium to 50 per cent. The Trump administration also announced a baseline 10 per cent tariff on all Japanese goods, which is set to rise to 24 per cent on July 9 unless a deal is reached. Negotiations between Trump and Japanese Prime Minister Shigeru Ishiba during the G7 summit failed to produce a breakthrough. As a result, exports to the United States plunged 11.1 per cent in May, with car shipments alone falling 24.7 per cent year-on-year. Japan’s trade surplus with the US narrowed to ¥451.7 billion, making it a likely target in Trump’s “reciprocal trade” policy push. “The tariff hit could shave nearly 1 percentage point off Japan’s GDP if all proposed duties take effect,” warned the Japan Research Institute, as quoted by Reuters. Trade data at a glance Below is a monthly breakdown of Japan’s year-on-year export growth from January 2023 to May 2025, based on Ministry of Finance data visualised by Bloomberg. The chart illustrates a clear trajectory in Japan’s export performance over the past two years. From late 2023 to mid-2024, exports showed strong year-on-year growth, peaking notably in November–December 2023 and again in May 2024. Economists suggest this surge was likely driven by Japanese firms front-loading shipments in anticipation of looming US tariffs. However, the momentum began to fade in the second half of 2024, with exports slipping into negative territory in September 2024. Although there was a brief recovery in the months that followed, the trend reversed once again by May 2025. That month marked a 1.7 per cent decline in exports, ending an eight-month stretch of expansion and confirming that the impact of US tariffs—previously obscured by early stockpiling—has started to bite into Japan’s trade flows.

Japan's recovery faces setbacks as exports declined 1.7% year-on-year in May 2025, the first drop in eight months, spurred by falling shipments of cars, steel, and fuels.

Japan’s exports fall for first time in 8 months as US tariffs bite into recovery

US President Donald Trump and UK Prime Minister Keir Starmer have signed off on a long-awaited trade agreement covering aerospace and automobiles but left the future of British steel exports unresolved.&nbsp;The deal was inked on the sidelines of the G7 summit in the Canadian Rockies on Monday. It marks the first bilateral trade pact under Trump’s second term, a pact both leaders hailed as a “sign of strength.”&nbsp;But beyond the smiles and handshakes, the agreement falls short of finality. While Trump declared, “We just signed it, and it’s done,” critical sectors like steel and pharmaceuticals remain mired in negotiations.<h2>Aerospace and autos win big</h2>Under the agreement, the UK aerospace sector will now face zero tariffs from the United States. This is a major victory for British manufacturers like Rolls-Royce, who were facing a proposed 10 per cent levy on exports.&nbsp;The UK auto industry also benefits. Tariffs on British-made cars will drop from 27.5 per cent to 10 per cent, but only for up to 100,000 vehicles per year. Exports above this quota will still be subject to steep US tariffs, as per the UK’s Department for Business and Trade, quoted by Associated Press.&nbsp;&nbsp;“This is a real sign of strength,” Starmer told reporters. “It’s a good day for both our countries.”President Trump praised the agreement too, saying, “The UK is very well protected… because I like them,” as reported by Reuters.<h2>Steel industry in limbo</h2>The most contentious issue, tariffs on British steel and aluminium remains unresolved. Trump had earlier threatened to raise global tariffs to 50 per cent but has kept UK rates at 25 per cent for now.The British government maintains that the plan is still for “0 per cent tariffs on core steel products as agreed,” but Trump’s executive order, issued Monday, introduced uncertainty.&nbsp;The US Commerce Department will now determine the volume of UK steel eligible for tariff-free access. A key sticking point is US concern over Chinese ownership of UK plants—specifically the Jingye Group’s stake in British Steel, as reported by Reuters.&nbsp;The UK had taken control of British Steel in April to prevent a shutdown of the Scunthorpe facility, but Washington still wants assurances that Chinese entities are not using the UK as a backdoor to evade US tariffs.<h2>Trump’s confusion, Starmer’s relief</h2>In a chaotic moment at the summit, Trump mistakenly said the trade agreement was with the European Union, not the UK. “We have our trade agreement with the European Union,” he told reporters, before quickly correcting himself. The slip-up did little to dampen the UK’s sense of diplomatic achievement.&nbsp;For Downing Street, the finalisation of even a partial deal counts as a symbolic win, especially on the global stage. The aerospace sector, one of Britain’s highest-value export industries, now enjoys tariff-free access to the US market.&nbsp;“This deal protects jobs and livelihoods in some of our most vital sectors,” UK Trade Secretary Jonathan Reynolds said. Mike Hawes, CEO of the Society of Motor Manufacturers and Traders, called it “great news” for the auto sector.<h2>What’s in the deal?</h2>The agreement removes all US tariffs on UK aerospace exports and imposes a 10 per cent cap on up to 100,000 British car exports annually. It also allows 13,000 metric tonnes of beef to be traded between both countries each year, though the UK will maintain its ban on hormone-treated US beef. Other areas, including steel, aluminium, digital services, and pharmaceuticals, remain under negotiation.&nbsp;The US administration also stressed that any future tariff exemptions will depend on security assurances and transparent ownership across UK supply chains, particularly in sensitive sectors like metals and healthcare.&nbsp;Monday’s signing was less a breakthrough and more a checkpoint. The framework first announced in May had left British businesses uncertain, especially after Trump doubled global metals tariffs earlier this month. The UK was spared that hike, but the reprieve may be temporary.&nbsp;While aerospace and auto manufacturers now have clarity, steel producers remain in limbo. And with Trump’s nationalist rhetoric intensifying ahead of the November election, the durability of this deal is far from guaranteed.&nbsp;More rounds of negotiation are expected in the weeks ahead, but for now, Trump’s personal diplomacy and Starmer’s soft-spoken strategy have delivered a limited, but politically symbolic win. &nbsp;(With inputs from the agencies) &nbsp;

 While Trump declared, “We just signed it, and it’s done,” critical sectors like steel and pharmaceuticals remain mired in negotiations.

US President Donald Trump and UK Prime Minister Keir Starmer have signed off on a long-awaited trade agreement covering aerospace and automobiles but left the future of British steel exports unresolved. The deal was inked on the sidelines of the G7 summit in the Canadian Rockies on Monday. It marks the first bilateral trade pact under Trump’s second term, a pact both leaders hailed as a “sign of strength.” But beyond the smiles and handshakes, the agreement falls short of finality. While Trump declared, “We just signed it, and it’s done,” critical sectors like steel and pharmaceuticals remain mired in negotiations. Aerospace and autos win big Under the agreement, the UK aerospace sector will now face zero tariffs from the United States. This is a major victory for British manufacturers like Rolls-Royce, who were facing a proposed 10 per cent levy on exports. The UK auto industry also benefits. Tariffs on British-made cars will drop from 27.5 per cent to 10 per cent, but only for up to 100,000 vehicles per year. Exports above this quota will still be subject to steep US tariffs, as per the UK’s Department for Business and Trade, quoted by Associated Press. “This is a real sign of strength,” Starmer told reporters. “It’s a good day for both our countries.” President Trump praised the agreement too, saying, “The UK is very well protected… because I like them,” as reported by Reuters. Steel industry in limbo The most contentious issue, tariffs on British steel and aluminium remains unresolved. Trump had earlier threatened to raise global tariffs to 50 per cent but has kept UK rates at 25 per cent for now. The British government maintains that the plan is still for “0 per cent tariffs on core steel products as agreed,” but Trump’s executive order, issued Monday, introduced uncertainty. The US Commerce Department will now determine the volume of UK steel eligible for tariff-free access. A key sticking point is US concern over Chinese ownership of UK plants—specifically the Jingye Group’s stake in British Steel, as reported by Reuters. The UK had taken control of British Steel in April to prevent a shutdown of the Scunthorpe facility, but Washington still wants assurances that Chinese entities are not using the UK as a backdoor to evade US tariffs. Trump’s confusion, Starmer’s relief In a chaotic moment at the summit, Trump mistakenly said the trade agreement was with the European Union, not the UK. “We have our trade agreement with the European Union,” he told reporters, before quickly correcting himself. The slip-up did little to dampen the UK’s sense of diplomatic achievement. For Downing Street, the finalisation of even a partial deal counts as a symbolic win, especially on the global stage. The aerospace sector, one of Britain’s highest-value export industries, now enjoys tariff-free access to the US market. “This deal protects jobs and livelihoods in some of our most vital sectors,” UK Trade Secretary Jonathan Reynolds said. Mike Hawes, CEO of the Society of Motor Manufacturers and Traders, called it “great news” for the auto sector. What’s in the deal? The agreement removes all US tariffs on UK aerospace exports and imposes a 10 per cent cap on up to 100,000 British car exports annually. It also allows 13,000 metric tonnes of beef to be traded between both countries each year, though the UK will maintain its ban on hormone-treated US beef. Other areas, including steel, aluminium, digital services, and pharmaceuticals, remain under negotiation. The US administration also stressed that any future tariff exemptions will depend on security assurances and transparent ownership across UK supply chains, particularly in sensitive sectors like metals and healthcare. Monday’s signing was less a breakthrough and more a checkpoint. The framework first announced in May had left British businesses uncertain, especially after Trump doubled global metals tariffs earlier this month. The UK was spared that hike, but the reprieve may be temporary. While aerospace and auto manufacturers now have clarity, steel producers remain in limbo. And with Trump’s nationalist rhetoric intensifying ahead of the November election, the durability of this deal is far from guaranteed. More rounds of negotiation are expected in the weeks ahead, but for now, Trump’s personal diplomacy and Starmer’s soft-spoken strategy have delivered a limited, but politically symbolic win. (With inputs from the agencies)

US and UK sign trade pact easing tariffs on aerospace and cars, but British steel exports remain in limbo amid ongoing negotiations and political tensions.

Trump signs US–UK trade deal at G7, says Britain ‘protected because I like them’

US President Donald Trump has reiterated his threat to impose unilateral tariffs on dozens of countries, giving them a two-week ultimatum to accept new trade terms or face higher duties.&nbsp;&nbsp;Speaking at an event at the John F. Kennedy Center for the Performing Arts in Washington, Trump said his administration would be sending letters to US trading partners outlining “the deal”, stating, “You can take it or leave it,” as quoted by Bloomberg.&nbsp;This comes ahead of a self-imposed July 9 deadline to reimpose duties that were initially delayed earlier this year amid financial market jitters and diplomatic pushback.<h2>Trump’s latest warning: Unilateral tariffs in ‘one to two weeks’</h2>According to Bloomberg, Trump said on Wednesday, “We’re going to be sending letters out in about a week and a half, two weeks, to countries, telling them what the deal is.” He added, “At a certain point, we’re just going to send letters out,” indicating a unilateral approach that may bypass negotiations.&nbsp;While Trump has frequently used two-week deadlines as political pressure tactics with many either delayed or abandoned, this warning marks a potential inflection point in his 2025 economic agenda.&nbsp;&nbsp;He has also signalled a reduced appetite for full-scale negotiations, telling reporters that the administration lacked the capacity to strike individual deals with “dozens” of economies.&nbsp;&nbsp;Talks would now be prioritised with a few major partners, including India, Japan, South Korea, and the European&nbsp;Union.<h2>Trump tariff saga&nbsp;</h2>On 2 April 2025, Trump unveiled sweeping global tariffs in what he heralded as his administration’s “Liberation Day” trade offensive. Under Executive Order 14257, a baseline 10 per cent reciprocal duty was imposed on nearly all US imports, with significantly higher levies aimed at key trading partners&nbsp;.&nbsp;In China’s case, the tariff assault was especially dramatic. The US first raised duties from 20 per cent to 34 per cent, then to 84 per cent, and finally to a stratospheric 145 per cent by 11 April. China, in turn, retaliated, escalating its tariffs to roughly 125 per cent on US exports, including agricultural and industrial goods .&nbsp;&nbsp;Beijing also issued export restrictions on rare-earth minerals and magnets, key inputs for tech industries, intensifying tensions further&nbsp;.&nbsp;Similar reciprocal tariffs were applied to other major economies. Mexico and Vietnam faced a 15 per cent duty on low-cost electronics and solar equipment, while Germany and South Korea saw 20 per cent levies on automobiles and industrial machinery.&nbsp;&nbsp;India was slapped with a stiff 26 per cent tariff on pharmaceuticals and processed metals, far higher than earlier reported estimates . Meanwhile, Indonesia and Thailand confronted new duties targeting textiles and battery components.&nbsp;In the midst of the chaos, Trump reversed course on 9 April, pausing most tariffs for 90 days while keeping Chinese tariffs intact prompting a dramatic rebound in stocks. Treasury Secretary Scott Bessent described the reprieve as a deliberate tactic to buy time for negotiations.&nbsp;&nbsp;However, the pause did little to resolve the core dispute. A US trade court ruled the tariff plan overstepped legal authority on 28 May, temporarily halting implementation. Trump swiftly appealed, keeping the threat alive .<h2>Trade tensions with China simmer despite truce</h2>Among the most fragile trade relationships remains that with China. Although Trump has touted a partial deal with Beijing, declaring earlier this week that “the framework is done,” tensions continue to simmer.&nbsp;&nbsp;As per Bloomberg, the agreement includes Beijing’s commitment to supply rare earths and industrial magnets, while the US would ease restrictions on Chinese students pursuing higher education in American institutions.&nbsp;Yet, this truce has already been tested. Both Washington and Beijing have accused each other of backtracking on key terms, leading to an emergency round of talks in London. According to Reuters, US negotiators fear that China’s state subsidies and export controls on critical minerals remain unresolved issues.&nbsp;<h2>No EU deal in sight, bilateral talks prioritised</h2>While some limited progress has been made such as a tariff truce with China and a skeletal trade understanding with the UK, the Trump administration has failed to reach comprehensive agreements with most other partners.&nbsp;Commerce Secretary Howard Lutnick, speaking on Wednesday, expressed frustration at the pace of negotiations with the European Union, calling the 27-member bloc “an impossible consensus machine.” As quoted by Reuters, Lutnick said, “The EU is likely to be among the last deals we close, not the first.”&nbsp;In contrast, efforts to finalise bilateral agreements with India, Japan and South Korea are ongoing. But details remain scarce, and many analysts see Trump’s unilateral approach as risking renewed trade wars with traditional allies and emerging economies alike.&nbsp;With the July 9 deadline fast approaching, Trump’s two-week ultimatum puts pressure on US trading partners to accept revised trade terms or brace for higher tariffs.&nbsp;&nbsp;While some nations may seek to negotiate exemptions or fast-track bilateral agreements, others could retaliate, plunging global trade into another uncertain chapter.&nbsp;Whether Trump follows through with his tariff threats remains to be seen. But one thing is clear, his trade doctrine is back on the global agenda, and the consequences could be far-reaching. &nbsp;(With inputs from the agencies)

With a July 9 deadline looming, Trump revives his hardline trade agenda, risking fresh global tensions as tariff threats return.

US President Donald Trump has reiterated his threat to impose unilateral tariffs on dozens of countries, giving them a two-week ultimatum to accept new trade terms or face higher duties. Speaking at an event at the John F. Kennedy Center for the Performing Arts in Washington, Trump said his administration would be sending letters to US trading partners outlining “the deal”, stating, “You can take it or leave it,” as quoted by Bloomberg. This comes ahead of a self-imposed July 9 deadline to reimpose duties that were initially delayed earlier this year amid financial market jitters and diplomatic pushback. Trump’s latest warning: Unilateral tariffs in ‘one to two weeks’ According to Bloomberg, Trump said on Wednesday, “We’re going to be sending letters out in about a week and a half, two weeks, to countries, telling them what the deal is.” He added, “At a certain point, we’re just going to send letters out,” indicating a unilateral approach that may bypass negotiations. While Trump has frequently used two-week deadlines as political pressure tactics with many either delayed or abandoned, this warning marks a potential inflection point in his 2025 economic agenda. He has also signalled a reduced appetite for full-scale negotiations, telling reporters that the administration lacked the capacity to strike individual deals with “dozens” of economies. Talks would now be prioritised with a few major partners, including India, Japan, South Korea, and the European Union. Trump tariff saga On 2 April 2025, Trump unveiled sweeping global tariffs in what he heralded as his administration’s “Liberation Day” trade offensive. Under Executive Order 14257, a baseline 10 per cent reciprocal duty was imposed on nearly all US imports, with significantly higher levies aimed at key trading partners . In China’s case, the tariff assault was especially dramatic. The US first raised duties from 20 per cent to 34 per cent, then to 84 per cent, and finally to a stratospheric 145 per cent by 11 April. China, in turn, retaliated, escalating its tariffs to roughly 125 per cent on US exports, including agricultural and industrial goods . Beijing also issued export restrictions on rare-earth minerals and magnets, key inputs for tech industries, intensifying tensions further . Similar reciprocal tariffs were applied to other major economies. Mexico and Vietnam faced a 15 per cent duty on low-cost electronics and solar equipment, while Germany and South Korea saw 20 per cent levies on automobiles and industrial machinery. India was slapped with a stiff 26 per cent tariff on pharmaceuticals and processed metals, far higher than earlier reported estimates . Meanwhile, Indonesia and Thailand confronted new duties targeting textiles and battery components. In the midst of the chaos, Trump reversed course on 9 April, pausing most tariffs for 90 days while keeping Chinese tariffs intact prompting a dramatic rebound in stocks. Treasury Secretary Scott Bessent described the reprieve as a deliberate tactic to buy time for negotiations. However, the pause did little to resolve the core dispute. A US trade court ruled the tariff plan overstepped legal authority on 28 May, temporarily halting implementation. Trump swiftly appealed, keeping the threat alive . Trade tensions with China simmer despite truce Among the most fragile trade relationships remains that with China. Although Trump has touted a partial deal with Beijing, declaring earlier this week that “the framework is done,” tensions continue to simmer. As per Bloomberg, the agreement includes Beijing’s commitment to supply rare earths and industrial magnets, while the US would ease restrictions on Chinese students pursuing higher education in American institutions. Yet, this truce has already been tested. Both Washington and Beijing have accused each other of backtracking on key terms, leading to an emergency round of talks in London. According to Reuters, US negotiators fear that China’s state subsidies and export controls on critical minerals remain unresolved issues. No EU deal in sight, bilateral talks prioritised While some limited progress has been made such as a tariff truce with China and a skeletal trade understanding with the UK, the Trump administration has failed to reach comprehensive agreements with most other partners. Commerce Secretary Howard Lutnick, speaking on Wednesday, expressed frustration at the pace of negotiations with the European Union, calling the 27-member bloc “an impossible consensus machine.” As quoted by Reuters, Lutnick said, “The EU is likely to be among the last deals we close, not the first.” In contrast, efforts to finalise bilateral agreements with India, Japan and South Korea are ongoing. But details remain scarce, and many analysts see Trump’s unilateral approach as risking renewed trade wars with traditional allies and emerging economies alike. With the July 9 deadline fast approaching, Trump’s two-week ultimatum puts pressure on US trading partners to accept revised trade terms or brace for higher tariffs. While some nations may seek to negotiate exemptions or fast-track bilateral agreements, others could retaliate, plunging global trade into another uncertain chapter. Whether Trump follows through with his tariff threats remains to be seen. But one thing is clear, his trade doctrine is back on the global agenda, and the consequences could be far-reaching. (With inputs from the agencies)

President Trump has issued a two-week ultimatum for new trade deals, threatening sweeping unilateral tariffs if countries don’t comply.

‘Take it or leave it’: Trump threatens new wave of tariffs in two weeks

US President Donald Trump on Wednesday (June 11 ) praised a federal appeals court decision that upheld his sweeping tariff measures, calling it “a great and important win for the US.” The ruling, issued on Tuesday (June 10) by the US Court of Appeals for the Federal Circuit in Washington, allows the continuation of tariffs imposed by the Trump administration on “Liberation Day.” Trump imposed tariffs on a broad range of imports from key US&nbsp;trading partners, as well as separate tariffs targeting goods from Canada, China, and Mexico.&nbsp;'Great win' for Trump: Tariffs to stay for now after US court's nod days after stating 'president exceeded his authority'&nbsp;In a post on Truth Social, the US president said, “A Federal Appeals Court has just ruled that the United States can use TARIFFS to protect itself against other countries. A great and important win for the U.S.”<figure class="image"><img src="https://cdn1.wionews.com/prod/wion/images/2025/20250611/image-1749647869504.png"></figure>&nbsp;The ruling by the court comes even as challenges to Donald Trump's signature trade policy continue on appeal. The decision by the U.S. Court of Appeals for the Federal Circuit extends a similar ruling it made after another federal court struck down the tariffs on May 28, saying Trump had overstepped his authority. Noting that the challenges to Trump's tariffs raise "issues of exceptional importance,'' the appeals court said it would expedite the case and hear arguments on July 31. In declaring the tariffs, Trump had invoked emergency powers under a 1977 law. But a three-judge panel of the U.S. Court of International Trade ruled he had exceeded his power.&nbsp;After imposing &nbsp;high duties on 56 nations and the European Union, the Trump administration announced a 90-day reprieve from higher tariffs for over 75 countries, stating that this is the time frame in which countries can strike a trade deal with the US. “I have authorised a 90-day PAUSE, and a substantially lowered reciprocal tariff during this period, of 10 percent, also effective immediately,” Trump had said.&nbsp;&nbsp;&nbsp;

US President Donald Trump praised a federal appeals court decision that upheld his sweeping tariff measure,calling it a great and important win for the US

US President Donald Trump on Wednesday (June 11 ) praised a federal appeals court decision that upheld his sweeping tariff measures, calling it “a great and important win for the US.” The ruling, issued on Tuesday (June 10) by the US Court of Appeals for the Federal Circuit in Washington, allows the continuation of tariffs imposed by the Trump administration on “Liberation Day.” Trump imposed tariffs on a broad range of imports from key US trading partners, as well as separate tariffs targeting goods from Canada, China, and Mexico. 'Great win' for Trump: Tariffs to stay for now after US court's nod days after stating 'president exceeded his authority' In a post on Truth Social, the US president said, “A Federal Appeals Court has just ruled that the United States can use TARIFFS to protect itself against other countries. A great and important win for the U.S.” The ruling by the court comes even as challenges to Donald Trump's signature trade policy continue on appeal. The decision by the U.S. Court of Appeals for the Federal Circuit extends a similar ruling it made after another federal court struck down the tariffs on May 28, saying Trump had overstepped his authority. Noting that the challenges to Trump's tariffs raise "issues of exceptional importance,'' the appeals court said it would expedite the case and hear arguments on July 31. In declaring the tariffs, Trump had invoked emergency powers under a 1977 law. But a three-judge panel of the U.S. Court of International Trade ruled he had exceeded his power. After imposing high duties on 56 nations and the European Union, the Trump administration announced a 90-day reprieve from higher tariffs for over 75 countries, stating that this is the time frame in which countries can strike a trade deal with the US. “I have authorised a 90-day PAUSE, and a substantially lowered reciprocal tariff during this period, of 10 percent, also effective immediately,” Trump had said.

The ruling by the court comes even as challenges to Donald Trump's signature trade policy continue on appeal

'Great win' for Trump: Tariffs to stay for now after US court's nod days after saying 'president exceeded his authority'

America’s inflation engine is picking up speed again, just as global growth shows signs of long-term fatigue.&nbsp;&nbsp;A fresh reading on consumer prices is expected to confirm a modest increase, as early impacts of new US tariffs begin reaching shoppers.&nbsp;&nbsp;Meanwhile, a World Bank report has warned the world economy could be heading for its slowest decade since the 1960s.<h2>US inflation ticks up as tariff pressures mount</h2>Consumer prices in the United States are expected to rise at a faster pace in May, driven in part by early signs of cost pass-through from new trade tariffs.&nbsp;&nbsp;As per a Bloomberg survey of economists, the core Consumer Price Index (which excludes food and fuel) likely rose by 0.3 per cent in May, slightly higher than April’s 0.2 per cent gain.&nbsp;If confirmed, annual inflation would stand at 2.9 per cent, indicating a potential reversal of the cooling trend seen in early 2024.&nbsp;Some of this price pressure appears to be linked to import levies introduced under Donald Trump’s trade policy. While most retailers have so far absorbed the higher costs or used pre-tariff stock, this buffer is thinning.&nbsp;&nbsp;Walmart, for instance, has already warned that prices on some items may need to rise in the coming weeks.&nbsp;According to a note by Pantheon Macroeconomics economists Samuel Tombs and Oliver Allen, only a limited number of products were affected by tariffs in May, but the situation could escalate.&nbsp;&nbsp;They suggested that a broader inflationary impact is likely to emerge in June, as reported by Bloomberg.&nbsp;Sectors particularly exposed to trade frictions include consumer electronics, apparel, household appliances, and new vehicles.&nbsp;&nbsp;As highlighted by Bank of America economists Stephen Juneau and Jeseo Park, audio equipment prices jumped sharply in April, and more categories could follow if tariffs remain.&nbsp;Meanwhile, Wells Fargo analysts Sarah House and Nicole Cervi observed that companies initially coped with the tariff shock through inventory buffers and hopes of a policy rollback. But they warned, “as the higher tariff regime persists, shielding consumers from the costs is likely to become more challenging," as quoted by Bloomberg.&nbsp;&nbsp;Despite the pickup in inflation, the US Federal Reserve is not expected to raise interest rates at its upcoming policy meeting.&nbsp;&nbsp;Fed Chair Jerome Powell has previously said the central bank would assess trade impacts over time before making any move.<h2>Airfare and hotel prices provide some relief</h2>Interestingly, not all sectors are seeing rising prices. Services such as travel and accommodation appear to be moving in the opposite direction. Analysts expect continued softness in airfares and hotel rates, potentially due to reduced spending on leisure and international tourism.&nbsp;According to Bloomberg, BNP Paribas economist Andrew Schneider anticipates deflation in both air travel and hospitality, attributing the trend to lower demand.&nbsp;&nbsp;Similarly, Bloomberg Economics’ chief US economist Anna Wong has said that a slowdown in discretionary spending, especially among government and business travellers is likely pulling prices down.&nbsp;“Consumers and the public sector are cutting back on travel this year, and airfare inflation is still on a downward track,” Wong noted in her latest commentary, as per Bloomberg.&nbsp;<h2>World Bank warns of global slowdown, blames tariffs and uncertainty</h2>As the US wrestles with domestic price pressures, the international outlook is darkening. In its latest economic report, the World Bank forecasts the slowest decade of global growth since the 1960s.&nbsp;The Bank now sees global GDP expanding by just 2.3 per cent in 2025, a downgrade of 0.4 percentage points from its previous forecast in January. Growth in 2027 is expected to inch up to 2.6 per cent.&nbsp;Nearly two-thirds of all countries have seen their forecasts trimmed.&nbsp;The US is among the economies hit hardest by the downgrade. The World Bank cited ongoing trade tensions, rising tariffs, and weakening investor confidence as reasons for the reduced outlook for the US in both 2025 and 2026.&nbsp;In contrast, China’s growth forecast remained unchanged. The Bank said Beijing has sufficient fiscal tools to counter global shocks and navigate geopolitical instability.&nbsp;The report explicitly warned that if tariff escalation continues, it could cause a major rupture in global trade. “Global trade could seize up in the second half of this year, accompanied by a widespread collapse in confidence, surging uncertainty and turmoil in financial markets,” the Bank wrote.&nbsp;Despite these warnings, the World Bank stopped short of calling a global recession, saying the risk remains low—at under 10 per cent.&nbsp;The gloomy outlook echoes a recent OECD projection, which revised global growth expectations down to 2.9 per cent from 3.1 per cent.&nbsp;Meanwhile, a new round of US–China trade talks concluded in London this week with both sides agreeing on a tentative framework to ease tensions, including export curbs on key technologies.&nbsp;&nbsp;&nbsp;

As US inflation edges up, a World Bank warning signals the global economy may face its weakest decade since the 1960s.

America’s inflation engine is picking up speed again, just as global growth shows signs of long-term fatigue. A fresh reading on consumer prices is expected to confirm a modest increase, as early impacts of new US tariffs begin reaching shoppers. Meanwhile, a World Bank report has warned the world economy could be heading for its slowest decade since the 1960s. US inflation ticks up as tariff pressures mount Consumer prices in the United States are expected to rise at a faster pace in May, driven in part by early signs of cost pass-through from new trade tariffs. As per a Bloomberg survey of economists, the core Consumer Price Index (which excludes food and fuel) likely rose by 0.3 per cent in May, slightly higher than April’s 0.2 per cent gain. If confirmed, annual inflation would stand at 2.9 per cent, indicating a potential reversal of the cooling trend seen in early 2024. Some of this price pressure appears to be linked to import levies introduced under Donald Trump’s trade policy. While most retailers have so far absorbed the higher costs or used pre-tariff stock, this buffer is thinning. Walmart, for instance, has already warned that prices on some items may need to rise in the coming weeks. According to a note by Pantheon Macroeconomics economists Samuel Tombs and Oliver Allen, only a limited number of products were affected by tariffs in May, but the situation could escalate. They suggested that a broader inflationary impact is likely to emerge in June, as reported by Bloomberg. Sectors particularly exposed to trade frictions include consumer electronics, apparel, household appliances, and new vehicles. As highlighted by Bank of America economists Stephen Juneau and Jeseo Park, audio equipment prices jumped sharply in April, and more categories could follow if tariffs remain. Meanwhile, Wells Fargo analysts Sarah House and Nicole Cervi observed that companies initially coped with the tariff shock through inventory buffers and hopes of a policy rollback. But they warned, “as the higher tariff regime persists, shielding consumers from the costs is likely to become more challenging," as quoted by Bloomberg. Despite the pickup in inflation, the US Federal Reserve is not expected to raise interest rates at its upcoming policy meeting. Fed Chair Jerome Powell has previously said the central bank would assess trade impacts over time before making any move. Airfare and hotel prices provide some relief Interestingly, not all sectors are seeing rising prices. Services such as travel and accommodation appear to be moving in the opposite direction. Analysts expect continued softness in airfares and hotel rates, potentially due to reduced spending on leisure and international tourism. According to Bloomberg, BNP Paribas economist Andrew Schneider anticipates deflation in both air travel and hospitality, attributing the trend to lower demand. Similarly, Bloomberg Economics’ chief US economist Anna Wong has said that a slowdown in discretionary spending, especially among government and business travellers is likely pulling prices down. “Consumers and the public sector are cutting back on travel this year, and airfare inflation is still on a downward track,” Wong noted in her latest commentary, as per Bloomberg. World Bank warns of global slowdown, blames tariffs and uncertainty As the US wrestles with domestic price pressures, the international outlook is darkening. In its latest economic report, the World Bank forecasts the slowest decade of global growth since the 1960s. The Bank now sees global GDP expanding by just 2.3 per cent in 2025, a downgrade of 0.4 percentage points from its previous forecast in January. Growth in 2027 is expected to inch up to 2.6 per cent. Nearly two-thirds of all countries have seen their forecasts trimmed. The US is among the economies hit hardest by the downgrade. The World Bank cited ongoing trade tensions, rising tariffs, and weakening investor confidence as reasons for the reduced outlook for the US in both 2025 and 2026. In contrast, China’s growth forecast remained unchanged. The Bank said Beijing has sufficient fiscal tools to counter global shocks and navigate geopolitical instability. The report explicitly warned that if tariff escalation continues, it could cause a major rupture in global trade. “Global trade could seize up in the second half of this year, accompanied by a widespread collapse in confidence, surging uncertainty and turmoil in financial markets,” the Bank wrote. Despite these warnings, the World Bank stopped short of calling a global recession, saying the risk remains low—at under 10 per cent. The gloomy outlook echoes a recent OECD projection, which revised global growth expectations down to 2.9 per cent from 3.1 per cent. Meanwhile, a new round of US–China trade talks concluded in London this week with both sides agreeing on a tentative framework to ease tensions, including export curbs on key technologies.

US inflation is rising again as new tariffs begin pushing up consumer prices, amid concerns of a sluggish global economy.

Tariffs nudge US inflation higher in May, World Bank flags weakest decade for global growth

A leading US vehicle suppliers’ group has sounded the alarm over China’s export restrictions on rare earth elements, warning that the curbs could soon disrupt auto parts production across the country.&nbsp;&nbsp;The group, known as MEMA, the Vehicle Suppliers Association,&nbsp;has called for “immediate and decisive action” from the US government, stressing that the industry is already facing “serious, real-time risks” to its supply chains, according to a statement quoted by Reuters.&nbsp;China, which dominates over 90 per cent of the global processing capacity for rare earths, tightened export restrictions in early April, requiring companies to obtain special licences to ship rare earth minerals and magnets abroad.&nbsp;&nbsp;The move followed the escalation of a US-China trade war triggered by President Donald Trump’s sweeping tariffs on Chinese imports, with Beijing now leveraging its grip on critical mineral supply chains in response.<h2>What are rare earths, and why do they matter?</h2>Rare earth elements are a group of 17 chemically similar metals used extensively in high-tech and green technologies. From electric vehicle motors and automatic transmissions to fighter jets, wind turbines, and smartphones, rare earths are vital to modern manufacturing.&nbsp;&nbsp;They are especially critical in the automotive industry, powering components such as alternators, motors, seatbelt systems, sensors, and cameras.Exporters in China must now submit lengthy applications, sometimes hundreds of pages long,&nbsp;to qualify for export licences. As per a Reuters report, China’s rare-earth magnet exports halved in April amid confusion over the new system, paralysing supply chains that had long depended on Beijing’s stability and efficiency.<h2>US suppliers face mounting pressure</h2>In a joint letter sent on 9 May to the Trump administration, MEMA and the Alliance for Automotive Innovation, representing automakers such as General Motors, Toyota, Volkswagen, and Hyundai,&nbsp;warned that the restrictions could bring the auto sector to a standstill.&nbsp;&nbsp;The letter, first reported by Reuters, said suppliers “will be unable to produce critical automotive components” without reliable access to rare earths.&nbsp;The situation has already disrupted operations. Ford, for instance, shut down production of its Explorer SUV at its Chicago plant for a week in May due to a rare-earth shortage. The White House has not yet responded publicly to the growing pressure from the auto industry, as per Reuters.<h2>European auto giants also feel the strain</h2>The ripple effects are now being felt across Europe. On 4 June, a Reuters report revealed that some auto parts factories in Europe have temporarily suspended output.&nbsp;&nbsp;Mercedes-Benz said it is in discussions with suppliers to build up stockpiles of rare earths, though it has not yet experienced a shortage. BMW confirmed that parts of its supplier network have been affected, even as its own production lines continue operating normally, according to a Reuters report.&nbsp;Europe’s main automotive supplier body, CLEPA, reported that several production lines had already shut down due to depleted inventories. Of the hundreds of export licence requests submitted by European suppliers since April, only around 25 per cent have been approved, with many reportedly rejected on “highly procedural grounds”, according to CLEPA.&nbsp;EU officials are now scrambling for alternatives. European Commissioner for Industrial Strategy, Stephane Séjourné, said the situation has “increased our will to diversify”, as Brussels identified 13 new mining and processing projects outside China. EU Trade Commissioner Maroš Šefčovič also announced discussions with his Chinese counterpart to clarify the licensing situation, as per Reuters.<h2>China’s dominance and strategic retaliation</h2>According to the US Geological Survey, China accounts for more than 70 per cent of rare earth mine production and over 90 per cent of global rare earth processing capacity. This strategic dominance gives Beijing a powerful lever in any trade negotiation.&nbsp;&nbsp;The current restrictions are part of a broader retaliatory package China introduced in response to President Trump’s tariffs,&nbsp;which, at their peak in April, reached up to 145 per cent on selected Chinese imports.&nbsp;While the two countries reached a temporary truce in May and agreed to roll back some of the tariffs, rare earth restrictions were not lifted. In a social media post quoted by Reuters last Friday, Trump accused China of violating the terms of the truce. “China is not keeping its word,” Trump said, adding that President Xi Jinping remains “VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH”.&nbsp;Talks between the two leaders are expected to take place later this week, with rare earth exports likely to top the agenda.<h2>Industry scrambling for alternatives</h2>Global carmakers and suppliers are now exploring alternative sources and technologies. General Motors, BMW, ZF, and BorgWarner have all begun developing motors that use fewer or no rare earth elements. BMW, for instance, has deployed magnet-free electric motors in its latest EV lineup, although it still requires rare earths for other smaller systems.&nbsp;However, the shift away from China-dominated supply chains is complex and expensive. According to Wolfgang Weber, CEO of Germany’s electrical and digital industry association ZVEI, many companies only have enough rare earth stockpiles to last “a few weeks or months.” In an emailed statement to Reuters, Weber said companies feel “abandoned by politicians” and are resorting to independent negotiations in China to secure permits.&nbsp;Swedish company Autoliv, the world’s largest manufacturer of airbags and seatbelts, said it has not yet been affected but has formed an internal task force to assess the risk and prepare contingency plans, as quoted by Reuters.<h2>The road ahead</h2>The ongoing export curbs are having a chilling effect on global manufacturing just as automakers are investing heavily in electrification. Rare earths are a linchpin of that green transition and China’s grip on the supply chain underscores the geopolitical complexity of that ambition.&nbsp;While industry players lobby governments for fast-tracked alternatives and stockpiling strategies, the outcome of Trump and Xi’s expected talks could shape the next chapter of this high-stakes trade dispute. Until then, both American and European industries remain on edge, bracing for further supply disruptions as China flexes its mineral muscle.&nbsp;

China, which controls 90% of the global processing capacity for rare earths, has tightened export restrictions following US-China trade war.

A leading US vehicle suppliers’ group has sounded the alarm over China’s export restrictions on rare earth elements, warning that the curbs could soon disrupt auto parts production across the country. The group, known as MEMA, the Vehicle Suppliers Association, has called for “immediate and decisive action” from the US government, stressing that the industry is already facing “serious, real-time risks” to its supply chains, according to a statement quoted by Reuters. China, which dominates over 90 per cent of the global processing capacity for rare earths, tightened export restrictions in early April, requiring companies to obtain special licences to ship rare earth minerals and magnets abroad. The move followed the escalation of a US-China trade war triggered by President Donald Trump’s sweeping tariffs on Chinese imports, with Beijing now leveraging its grip on critical mineral supply chains in response. What are rare earths, and why do they matter? Rare earth elements are a group of 17 chemically similar metals used extensively in high-tech and green technologies. From electric vehicle motors and automatic transmissions to fighter jets, wind turbines, and smartphones, rare earths are vital to modern manufacturing. They are especially critical in the automotive industry, powering components such as alternators, motors, seatbelt systems, sensors, and cameras. Exporters in China must now submit lengthy applications, sometimes hundreds of pages long, to qualify for export licences. As per a Reuters report, China’s rare-earth magnet exports halved in April amid confusion over the new system, paralysing supply chains that had long depended on Beijing’s stability and efficiency. US suppliers face mounting pressure In a joint letter sent on 9 May to the Trump administration, MEMA and the Alliance for Automotive Innovation, representing automakers such as General Motors, Toyota, Volkswagen, and Hyundai, warned that the restrictions could bring the auto sector to a standstill. The letter, first reported by Reuters, said suppliers “will be unable to produce critical automotive components” without reliable access to rare earths. The situation has already disrupted operations. Ford, for instance, shut down production of its Explorer SUV at its Chicago plant for a week in May due to a rare-earth shortage. The White House has not yet responded publicly to the growing pressure from the auto industry, as per Reuters. European auto giants also feel the strain The ripple effects are now being felt across Europe. On 4 June, a Reuters report revealed that some auto parts factories in Europe have temporarily suspended output. Mercedes-Benz said it is in discussions with suppliers to build up stockpiles of rare earths, though it has not yet experienced a shortage. BMW confirmed that parts of its supplier network have been affected, even as its own production lines continue operating normally, according to a Reuters report. Europe’s main automotive supplier body, CLEPA, reported that several production lines had already shut down due to depleted inventories. Of the hundreds of export licence requests submitted by European suppliers since April, only around 25 per cent have been approved, with many reportedly rejected on “highly procedural grounds”, according to CLEPA. EU officials are now scrambling for alternatives. European Commissioner for Industrial Strategy, Stephane Séjourné, said the situation has “increased our will to diversify”, as Brussels identified 13 new mining and processing projects outside China. EU Trade Commissioner Maroš Šefčovič also announced discussions with his Chinese counterpart to clarify the licensing situation, as per Reuters. China’s dominance and strategic retaliation According to the US Geological Survey, China accounts for more than 70 per cent of rare earth mine production and over 90 per cent of global rare earth processing capacity. This strategic dominance gives Beijing a powerful lever in any trade negotiation. The current restrictions are part of a broader retaliatory package China introduced in response to President Trump’s tariffs, which, at their peak in April, reached up to 145 per cent on selected Chinese imports. While the two countries reached a temporary truce in May and agreed to roll back some of the tariffs, rare earth restrictions were not lifted. In a social media post quoted by Reuters last Friday, Trump accused China of violating the terms of the truce. “China is not keeping its word,” Trump said, adding that President Xi Jinping remains “VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH”. Talks between the two leaders are expected to take place later this week, with rare earth exports likely to top the agenda. Industry scrambling for alternatives Global carmakers and suppliers are now exploring alternative sources and technologies. General Motors, BMW, ZF, and BorgWarner have all begun developing motors that use fewer or no rare earth elements. BMW, for instance, has deployed magnet-free electric motors in its latest EV lineup, although it still requires rare earths for other smaller systems. However, the shift away from China-dominated supply chains is complex and expensive. According to Wolfgang Weber, CEO of Germany’s electrical and digital industry association ZVEI, many companies only have enough rare earth stockpiles to last “a few weeks or months.” In an emailed statement to Reuters, Weber said companies feel “abandoned by politicians” and are resorting to independent negotiations in China to secure permits. Swedish company Autoliv, the world’s largest manufacturer of airbags and seatbelts, said it has not yet been affected but has formed an internal task force to assess the risk and prepare contingency plans, as quoted by Reuters. The road ahead The ongoing export curbs are having a chilling effect on global manufacturing just as automakers are investing heavily in electrification. Rare earths are a linchpin of that green transition and China’s grip on the supply chain underscores the geopolitical complexity of that ambition. While industry players lobby governments for fast-tracked alternatives and stockpiling strategies, the outcome of Trump and Xi’s expected talks could shape the next chapter of this high-stakes trade dispute. Until then, both American and European industries remain on edge, bracing for further supply disruptions as China flexes its mineral muscle.

US vehicle suppliers' group, MEMA, has called for immediate action from the US government over China's export restrictions on rare earth elements, citing potential disruption to auto parts production.&nbsp;

China tightens rare earth exports, US auto suppliers sound alarm: What’s at stake?

The United States economy is losing momentum as new data reveals the growing strain from elevated tariffs and persistent policy uncertainty.&nbsp;&nbsp;According to the Federal Reserve’s latest Beige Book report released on 4 June, economic activity has declined across much of the country, with businesses reporting increased costs, weaker demand, and concerns about the future.<h2>Fed report highlights a cooling economy</h2>The Beige Book, a compilation of anecdotal evidence collected by the US central bank’s 12 regional branches found that only three districts saw growth in recent weeks. In contrast, half reported outright contraction.&nbsp; This is a sharp deterioration from January 2025, when all 12 districts had registered economic expansion. As per Reuters, the Fed’s snapshot, based on data gathered through 23 May, stated: “On balance, the outlook remains slightly pessimistic and uncertain, unchanged relative to the previous report.”&nbsp; The document warned of widespread expectations among business contacts that “costs and prices will rise at a faster rate going forward.” Businesses across sectors are increasingly concerned about the economic landscape, with some pulling back on stockpiling goods due to escalating costs.&nbsp;&nbsp;A florist in New York said they had begun adjusting flower varieties based on “rapidly changing costs by source country”, while others reported difficulty forecasting demand due to trade policy uncertainty, as per Reuters.&nbsp;<h2>Tariffs reshape pricing and consumer choices</h2>According to the San Francisco Fed, companies are now explicitly including separate tariff lines in contracts and quotes.&nbsp;&nbsp;The report noted that price hikes introduced in anticipation of tariffs were not reversed even after some duties were removed. &nbsp;Retailers are witnessing changes in consumer behaviour. The Cleveland Fed said many car dealerships saw a spike in purchases ahead of planned tariffs but expect sales to decline starting in June due to “tariff-related sticker shock.”&nbsp;&nbsp;Meanwhile, discretionary spending has pulled back, with some consumers downgrading to less expensive alternatives.&nbsp;The Boston Fed described sentiment as “a mix of cautious optimism and blunt pessimism.” While some hoped that resolution of trade tensions would unlock growth, others warned that tariff pressures and federal policies may drag demand further.<h2>Employment flat, with regional divergence</h2>The labour market remains broadly stable, but there is variation across regions and industries. The Richmond Fed reported contrasting trends: a Maryland construction firm plans to hire more due to ongoing demand, whereas a fast-casual restaurant chain in the D.C. region has halted hiring amid economic concerns, as per Reuters.&nbsp;&nbsp;Nationwide, employment was reported as “flat” in most districts. This softening contrasts with official data, which still portrays a relatively healthy labour market.&nbsp;&nbsp;For example, April’s Personal Consumption Expenditures (PCE) Price Index rose by just 2.1 per cent, the lowest in four years and marginally above the Fed’s 2 per cent inflation target.<h2>Fed data diverging from business sentiment</h2>While hard economic indicators show resilience, such as solid employment levels, policymakers are increasingly leaning on real-time insights like those captured in the Beige Book.&nbsp; &nbsp;As reported by Reuters, Fed officials are putting a “premium on day-to-day experiences” of businesses and households to make forward-looking decisions.&nbsp;Additional survey-based data echoes the Fed’s findings. According to a report released on the same day by the Institute for Supply Management, the US services sector contracted in May for the first time in a year, with businesses reporting higher costs for inputs.<h2>IMF warns of weaker 2025 outlook, tight fiscal path</h2>The International Monetary Fund has also revised its 2025 outlook for the US. It now forecasts GDP growth of just 1.9 per cent next year, citing a cooling labour market and tightening fiscal policy.&nbsp;&nbsp;As per the IMF’s Article IV consultation, consumption is expected to moderate, and inflation risks persist, particularly in services.&nbsp;The IMF estimates unemployment will rise to 4.2 per cent by next year, from the current level of 4.1 per cent.&nbsp;&nbsp;Despite easing price pressures, the Fund has warned that global disinflation is slowing, especially in key sectors such as housing, food, and transport.<h2>Fed’s policy dilemma: inflation vs recession</h2>The Federal Reserve has kept interest rates steady in the 4.25–4.50 per cent range since December 2024.&nbsp;&nbsp;Policymakers now face a tough balancing act: fighting inflation without stifling growth. &nbsp;Speaking to Bloomberg, Chicago Fed President Austan Goolsbee suggested that if current conditions persist, the Fed may reduce short-term interest rates within the next 12 to 15 months.&nbsp;&nbsp;However, he cautioned that further escalation in tariffs or a spike in core inflation could delay such a move.<h2>Trump intensifies pressure on Powell</h2>President Donald Trump has renewed calls for rate cuts following weak job numbers. According to Bloomberg, only 37,000 private-sector jobs were added in May, the lowest figure since March 2023 and well below forecasts of 110,000.&nbsp; &nbsp;Trump criticised Fed Chair Jerome Powell on Truth Social, citing Europe’s recent rate reductions as a benchmark.&nbsp;Analysts say the disappointing employment figures, coupled with business unease over tariffs, could lead to monetary easing as soon as the Federal Open Market Committee’s next meeting on 17–18 June, as per Reuters.&nbsp;<h2>What lies ahead?</h2>With tariff pressures mounting, policy clarity lacking, and economic activity softening, the Fed’s next steps will be crucial.&nbsp;&nbsp;The Beige Book has laid bare the fragility beneath surface-level indicators. The central bank must now navigate a narrow path between easing inflation and avoiding a recession , all while under political scrutiny and global uncertainty.&nbsp;(With inputs from the agencies) &nbsp;

 Only three of 12 districts experienced growth, causing concerns about the future. Expectations of faster cost and price increases have led some businesses to adjust operations and reduce inventory due to unpredictable trade policies.

The United States economy is losing momentum as new data reveals the growing strain from elevated tariffs and persistent policy uncertainty. According to the Federal Reserve’s latest Beige Book report released on 4 June, economic activity has declined across much of the country, with businesses reporting increased costs, weaker demand, and concerns about the future. Fed report highlights a cooling economy The Beige Book, a compilation of anecdotal evidence collected by the US central bank’s 12 regional branches found that only three districts saw growth in recent weeks. In contrast, half reported outright contraction. This is a sharp deterioration from January 2025, when all 12 districts had registered economic expansion. As per Reuters, the Fed’s snapshot, based on data gathered through 23 May, stated: “On balance, the outlook remains slightly pessimistic and uncertain, unchanged relative to the previous report.” The document warned of widespread expectations among business contacts that “costs and prices will rise at a faster rate going forward.” Businesses across sectors are increasingly concerned about the economic landscape, with some pulling back on stockpiling goods due to escalating costs. A florist in New York said they had begun adjusting flower varieties based on “rapidly changing costs by source country”, while others reported difficulty forecasting demand due to trade policy uncertainty, as per Reuters. Tariffs reshape pricing and consumer choices According to the San Francisco Fed, companies are now explicitly including separate tariff lines in contracts and quotes. The report noted that price hikes introduced in anticipation of tariffs were not reversed even after some duties were removed. Retailers are witnessing changes in consumer behaviour. The Cleveland Fed said many car dealerships saw a spike in purchases ahead of planned tariffs but expect sales to decline starting in June due to “tariff-related sticker shock.” Meanwhile, discretionary spending has pulled back, with some consumers downgrading to less expensive alternatives. The Boston Fed described sentiment as “a mix of cautious optimism and blunt pessimism.” While some hoped that resolution of trade tensions would unlock growth, others warned that tariff pressures and federal policies may drag demand further. Employment flat, with regional divergence The labour market remains broadly stable, but there is variation across regions and industries. The Richmond Fed reported contrasting trends: a Maryland construction firm plans to hire more due to ongoing demand, whereas a fast-casual restaurant chain in the D.C. region has halted hiring amid economic concerns, as per Reuters. Nationwide, employment was reported as “flat” in most districts. This softening contrasts with official data, which still portrays a relatively healthy labour market. For example, April’s Personal Consumption Expenditures (PCE) Price Index rose by just 2.1 per cent, the lowest in four years and marginally above the Fed’s 2 per cent inflation target. Fed data diverging from business sentiment While hard economic indicators show resilience, such as solid employment levels, policymakers are increasingly leaning on real-time insights like those captured in the Beige Book. As reported by Reuters, Fed officials are putting a “premium on day-to-day experiences” of businesses and households to make forward-looking decisions. Additional survey-based data echoes the Fed’s findings. According to a report released on the same day by the Institute for Supply Management, the US services sector contracted in May for the first time in a year, with businesses reporting higher costs for inputs. IMF warns of weaker 2025 outlook, tight fiscal path The International Monetary Fund has also revised its 2025 outlook for the US. It now forecasts GDP growth of just 1.9 per cent next year, citing a cooling labour market and tightening fiscal policy. As per the IMF’s Article IV consultation, consumption is expected to moderate, and inflation risks persist, particularly in services. The IMF estimates unemployment will rise to 4.2 per cent by next year, from the current level of 4.1 per cent. Despite easing price pressures, the Fund has warned that global disinflation is slowing, especially in key sectors such as housing, food, and transport. Fed’s policy dilemma: inflation vs recession The Federal Reserve has kept interest rates steady in the 4.25–4.50 per cent range since December 2024. Policymakers now face a tough balancing act: fighting inflation without stifling growth. Speaking to Bloomberg, Chicago Fed President Austan Goolsbee suggested that if current conditions persist, the Fed may reduce short-term interest rates within the next 12 to 15 months. However, he cautioned that further escalation in tariffs or a spike in core inflation could delay such a move. Trump intensifies pressure on Powell President Donald Trump has renewed calls for rate cuts following weak job numbers. According to Bloomberg, only 37,000 private-sector jobs were added in May, the lowest figure since March 2023 and well below forecasts of 110,000. Trump criticised Fed Chair Jerome Powell on Truth Social, citing Europe’s recent rate reductions as a benchmark. Analysts say the disappointing employment figures, coupled with business unease over tariffs, could lead to monetary easing as soon as the Federal Open Market Committee’s next meeting on 17–18 June, as per Reuters. What lies ahead? With tariff pressures mounting, policy clarity lacking, and economic activity softening, the Fed’s next steps will be crucial. The Beige Book has laid bare the fragility beneath surface-level indicators. The central bank must now navigate a narrow path between easing inflation and avoiding a recession , all while under political scrutiny and global uncertainty. (With inputs from the agencies)

Amid tariff pressure, the &nbsp;Federal Reserve's Beige Book indicates declining economic activity, with businesses citing rising costs and weaker demand.

US economic growth falters as Fed flags tariff burdens and rising uncertainty

The pace of job creation in the US is cooling, as shifting trade policies, rising business costs and a sharp drop in corporate profits weigh on labour market momentum, according to Bloomberg reports.&nbsp;Employers added an estimated 125,000 jobs in May, a decline from the average 162,000 payroll additions over the past three months, as per a Bloomberg median forecast. The unemployment rate is expected to hold at 4.2 per cent, reflecting a stable but softening labour environment.&nbsp;“Our preliminary forecast range for May nonfarm payrolls is 60,000–130,000, with the central tendency clustering around 90,000 – lower than the consensus of 130,000,” Bloomberg economists Anna Wong, Stuart Paul, Eliza Winger, Estelle Ou and Chris G. Collins wrote in a note.&nbsp;They added that the weakness is likely concentrated in the leisure and hospitality sector, due to reduced international tourism and government travel.<h2>Corporate profits slump as businesses face tariff squeeze</h2>According to the US Commerce Department, corporate profits fell by 118.1 billion dollars in the first quarter of 2025 – the steepest decline since the onset of the pandemic in 2020. As per Reuters, this profit contraction is being largely blamed on higher input costs, driven by President Donald Trump’s escalating trade tariffs.&nbsp;On 30 May, Trump announced plans to double steel and aluminium tariffs to 50 per cent from the existing 25 per cent, in a bid to pressure global producers and reduce the trade deficit. The move has sparked backlash from the European Commission, which called it a violation of fair trade and warned of countermeasures.&nbsp;“Employers seeking clarity around the White House’s trade policy have instead been greeted with frequent adjustments to timelines and import duty schedules,” Bloomberg noted, adding that this has left businesses hesitant to commit to fresh investments.<h2>Labour data reveals rising unemployment claims</h2>As businesses tighten costs amid profit pressures, signs of softening labour demand are becoming more visible. Initial jobless claims rose by 14,000 to 240,000 for the week ending 24 May, higher than expected, while continuing claims climbed to 1.92 million, the highest since November 2021, according to Reuters.<h2>Fed likely to hold policy amid mixed signals</h2>The Federal Reserve has kept rates steady at 4.25–4.50 per cent since December 2024, as officials await more consistent economic signals. Fed Chair Jerome Powell has emphasised that the central bank will take a “data-dependent approach,” noting risks on both inflation and employment fronts.&nbsp;“Federal Reserve officials are likely to take the labour market reports in stride as they too await clarity on how trade and tax policy will impact the economy and inflation,” Bloomberg reported.&nbsp;Investors will watch closely for comments this week from Fed Governors Lisa Cook, Adriana Kugler, and Christopher Waller, as well as the release of the Fed’s Beige Book on anecdotal economic conditions across districts.<h2>Trade-driven GDP drag</h2>The economic slowdown is further evidenced by revised GDP figures. As per the Commerce Department, US GDP contracted by 0.2 per cent in the first quarter, slightly better than the earlier -0.3 per cent estimate.&nbsp;&nbsp;The contraction reflects a 42.6 per cent spike in imports, as companies rushed purchases ahead of expected tariffs. However, inventories and consumer spending failed to keep pace, leading to a net drag on growth.&nbsp;“Concerned that revenue will suffer, companies are growing more conscious about cost-saving efforts that risk culminating in slower labour demand,” Bloomberg observed.

Compared to the average of 162,000 jobs created over the previous three months, employers added an estimated 125,000 jobs in May. 

The pace of job creation in the US is cooling, as shifting trade policies, rising business costs and a sharp drop in corporate profits weigh on labour market momentum, according to Bloomberg reports. Employers added an estimated 125,000 jobs in May, a decline from the average 162,000 payroll additions over the past three months, as per a Bloomberg median forecast. The unemployment rate is expected to hold at 4.2 per cent, reflecting a stable but softening labour environment. “Our preliminary forecast range for May nonfarm payrolls is 60,000–130,000, with the central tendency clustering around 90,000 – lower than the consensus of 130,000,” Bloomberg economists Anna Wong, Stuart Paul, Eliza Winger, Estelle Ou and Chris G. Collins wrote in a note. They added that the weakness is likely concentrated in the leisure and hospitality sector, due to reduced international tourism and government travel. Corporate profits slump as businesses face tariff squeeze According to the US Commerce Department, corporate profits fell by 118.1 billion dollars in the first quarter of 2025 – the steepest decline since the onset of the pandemic in 2020. As per Reuters, this profit contraction is being largely blamed on higher input costs, driven by President Donald Trump’s escalating trade tariffs. On 30 May, Trump announced plans to double steel and aluminium tariffs to 50 per cent from the existing 25 per cent, in a bid to pressure global producers and reduce the trade deficit. The move has sparked backlash from the European Commission, which called it a violation of fair trade and warned of countermeasures. “Employers seeking clarity around the White House’s trade policy have instead been greeted with frequent adjustments to timelines and import duty schedules,” Bloomberg noted, adding that this has left businesses hesitant to commit to fresh investments. Labour data reveals rising unemployment claims As businesses tighten costs amid profit pressures, signs of softening labour demand are becoming more visible. Initial jobless claims rose by 14,000 to 240,000 for the week ending 24 May, higher than expected, while continuing claims climbed to 1.92 million, the highest since November 2021, according to Reuters. Fed likely to hold policy amid mixed signals The Federal Reserve has kept rates steady at 4.25–4.50 per cent since December 2024, as officials await more consistent economic signals. Fed Chair Jerome Powell has emphasised that the central bank will take a “data-dependent approach,” noting risks on both inflation and employment fronts. “Federal Reserve officials are likely to take the labour market reports in stride as they too await clarity on how trade and tax policy will impact the economy and inflation,” Bloomberg reported. Investors will watch closely for comments this week from Fed Governors Lisa Cook, Adriana Kugler, and Christopher Waller, as well as the release of the Fed’s Beige Book on anecdotal economic conditions across districts. Trade-driven GDP drag The economic slowdown is further evidenced by revised GDP figures. As per the Commerce Department, US GDP contracted by 0.2 per cent in the first quarter, slightly better than the earlier -0.3 per cent estimate. The contraction reflects a 42.6 per cent spike in imports, as companies rushed purchases ahead of expected tariffs. However, inventories and consumer spending failed to keep pace, leading to a net drag on growth. “Concerned that revenue will suffer, companies are growing more conscious about cost-saving efforts that risk culminating in slower labour demand,” Bloomberg observed.

A decline in corporate profits, increased business expenses, and changing trade policy are all contributing to the cooling of the US labor market.&nbsp;

US job growth slows amid profit slump and Trump tariff uncertainty

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

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

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

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

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

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

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

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

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

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

As trade tensions escalate between the world’s two largest economies, China is doubling down on efforts to internationalise its currency.&nbsp;In its latest move, the People’s Bank of China (PBOC) has directed major domestic lenders to boost the use of the yuan in cross-border transactions, a clear signal that Beijing is preparing for a more volatile global financial order.&nbsp;According to Bloomberg, the central bank has raised the floor ratio for yuan-denominated trade transactions from 25 per cent to 40 per cent, under its Macro Prudential Assessment framework. While not mandatory, the guidance is significant for banks that fall short of the ratio are often penalised with lower regulatory scores, potentially impacting their future expansion.&nbsp;The PBOC has not issued an official comment on the development.<h2>Yuan push amid tariff tremors</h2>This move comes just weeks after US President Donald Trump hiked tariffs on Chinese goods to as high as 145 per cent, reigniting trade tensions that have already rattled global markets. China retaliated with its own tariff increases, though both sides agreed to a 90-day truce earlier this month, as per Reuters.But the yuan directive suggests that China isn’t waiting idly.&nbsp;As reported by Bloomberg, the sharp increase in yuan transaction requirements reflects Beijing’s determination to reduce reliance on the US dollar and bolster the yuan’s role in global commerce. The move is widely seen as part of China’s long-term de-dollarisation strategy.<h2>Global trade shifting away from the dollar</h2>The timing is no coincidence. Across Asia, nations are beginning to explore alternatives to dollar-based trade, especially amid rising geopolitical tensions. According to Bloomberg Intelligence, a broader shift to bypass the dollar in favour of local currencies is gaining momentum — with China, India, and ASEAN countries leading the charge.&nbsp;China has already made notable progress. The country’s goods imports and exports totalled 43.8 trillion yuan (6.1 trillion US dollars) in 2024, with 30 per cent of those transactions now settled in yuan, according to central bank Governor Pan Gongsheng, speaking in January.&nbsp;To further boost cross-border yuan use, Chinese banks have been instructed to offer discounted service fees to exporters and importers, while also enhancing foreign exchange hedging services, especially in cities like Shanghai. These initiatives are part of a broader effort to streamline cross-border settlements and increase the attractiveness of the yuan.<h2>A currency strategy with geopolitical weight</h2>While the yuan’s international share still lags behind the dollar and the euro, China’s latest directive is reportedly expected to boost demand for its currency, particularly among trade partners wary of dollar volatility.&nbsp;The onshore yuan has risen 1.57 per cent this year, now trading at around 7.187 per US dollar, Bloomberg reports. Analysts say a stronger and more widely accepted yuan could help insulate China from the financial impact of future US sanctions or tariffs.&nbsp;This strategic currency push could also offer China more leverage in ongoing trade negotiations, signalling to the US that it has tools beyond tariffs to shape the future of global trade.&nbsp;Beijing’s move underscores a deeper economic ambition: reshaping the global trade system to favour a multipolar currency environment where the yuan plays a central role. It also signals growing unease with Washington’s use of financial dominance as a geopolitical tool.&nbsp;As per Bloomberg, Chinese regulators are expected to continue rolling out incentives and regulatory tweaks to accelerate this transition, especially as Trump’s economic nationalism fuels uncertainty in global markets.&nbsp;Whether the world is ready to shift away from the dollar remains uncertain. But what is clear: China is not waiting for an invitation.

Business & Economy: The central bank guidance is significant for banks that fall short of the ratio are often penalised with lower regulatory scores, potentially impacting their future expansion.

As trade tensions escalate between the world’s two largest economies, China is doubling down on efforts to internationalise its currency. In its latest move, the People’s Bank of China (PBOC) has directed major domestic lenders to boost the use of the yuan in cross-border transactions, a clear signal that Beijing is preparing for a more volatile global financial order. According to Bloomberg, the central bank has raised the floor ratio for yuan-denominated trade transactions from 25 per cent to 40 per cent, under its Macro Prudential Assessment framework. While not mandatory, the guidance is significant for banks that fall short of the ratio are often penalised with lower regulatory scores, potentially impacting their future expansion. The PBOC has not issued an official comment on the development. Yuan push amid tariff tremors This move comes just weeks after US President Donald Trump hiked tariffs on Chinese goods to as high as 145 per cent, reigniting trade tensions that have already rattled global markets. China retaliated with its own tariff increases, though both sides agreed to a 90-day truce earlier this month, as per Reuters. But the yuan directive suggests that China isn’t waiting idly. As reported by Bloomberg, the sharp increase in yuan transaction requirements reflects Beijing’s determination to reduce reliance on the US dollar and bolster the yuan’s role in global commerce. The move is widely seen as part of China’s long-term de-dollarisation strategy. Global trade shifting away from the dollar The timing is no coincidence. Across Asia, nations are beginning to explore alternatives to dollar-based trade, especially amid rising geopolitical tensions. According to Bloomberg Intelligence, a broader shift to bypass the dollar in favour of local currencies is gaining momentum — with China, India, and ASEAN countries leading the charge. China has already made notable progress. The country’s goods imports and exports totalled 43.8 trillion yuan (6.1 trillion US dollars) in 2024, with 30 per cent of those transactions now settled in yuan, according to central bank Governor Pan Gongsheng, speaking in January. To further boost cross-border yuan use, Chinese banks have been instructed to offer discounted service fees to exporters and importers, while also enhancing foreign exchange hedging services, especially in cities like Shanghai. These initiatives are part of a broader effort to streamline cross-border settlements and increase the attractiveness of the yuan. A currency strategy with geopolitical weight While the yuan’s international share still lags behind the dollar and the euro, China’s latest directive is reportedly expected to boost demand for its currency, particularly among trade partners wary of dollar volatility. The onshore yuan has risen 1.57 per cent this year, now trading at around 7.187 per US dollar, Bloomberg reports. Analysts say a stronger and more widely accepted yuan could help insulate China from the financial impact of future US sanctions or tariffs. This strategic currency push could also offer China more leverage in ongoing trade negotiations, signalling to the US that it has tools beyond tariffs to shape the future of global trade. Beijing’s move underscores a deeper economic ambition: reshaping the global trade system to favour a multipolar currency environment where the yuan plays a central role. It also signals growing unease with Washington’s use of financial dominance as a geopolitical tool. As per Bloomberg, Chinese regulators are expected to continue rolling out incentives and regulatory tweaks to accelerate this transition, especially as Trump’s economic nationalism fuels uncertainty in global markets. Whether the world is ready to shift away from the dollar remains uncertain. But what is clear: China is not waiting for an invitation.

Amid global trade uncertainities, China is doubling down on efforts to internationalise its currency as the central bank has reportedly directed major domestic lenders to boost the use of the yuan in cross-border transactions. &nbsp;

China pushes Yuan use in trade as US tariff shake global markets

China is reportedly preparing a new high-tech industrial policy to follow up on its ambitious “Made in China 2025” strategy.&nbsp;This signals the Xi Jinping government's intention to maintain a strong manufacturing base even as the United States ramps up tariffs and calls for economic rebalancing.<h2>A modernised version of ‘Made in China’</h2>According to a report by Bloomberg, Beijing is working on a successor to its 2015 “Made in China 2025” industrial plan. While the original initiative sparked a backlash from Western nations, the updated version is expected to prioritise strategic sectors like semiconductors and chip-making equipment, while potentially avoiding the same label to reduce global scrutiny. Sources familiar with the matter told Bloomberg that the new strategy could be unveiled either before or after China announces its 15th Five-Year Plan in March 2026. The manufacturing focus will aim to stabilise the sector’s contribution to GDP and secure China’s position as a global tech powerhouse.<h2>US-China tariff tension</h2>This development comes at a time of rising trade tensions, with President Donald Trump’s administration pursuing what it calls “strategic decoupling” from China. In April, the US imposed fresh tariffs on Chinese electric vehicles, solar panels, and semiconductors, briefly raising some rates as high as 145 per cent.A subsequent agreement in Geneva reduced the average tariff to around 40 per cent, but the pressure on China remains intense.&nbsp;The US says it wants China to transition from an export-led growth model to one driven by domestic consumption.However, Chinese policymakers have resisted external calls to reduce industrial subsidies and market intervention, insisting that manufacturing remains key to national security and job creation.&nbsp;While the US argues that China needs to raise household consumption levels, Beijing is treading carefully. According to Bloomberg report, officials involved in drafting the upcoming Five-Year Plan are hesitant to include a numerical consumption target. The concern: China lacks the policy tools to boost spending significantly and sustainably.&nbsp;As it stands, household consumption accounts for only about 40 per cent of China’s GDP—well below the 50 to 70 per cent typical of more developed economies. By contrast, investment (largely in infrastructure and manufacturing) still comprises another 40 per cent, reflecting China’s unique growth model.<h2>Manufacturing remains the backbone&nbsp;of China</h2> During a visit to a ball-bearing factory in Henan on 19 May, President Xi Jinping reaffirmed China’s commitment to strengthening its manufacturing base. “We must keep strengthening the manufacturing sector, adhere to the principles of self-reliance and self-improvement, and master key core technologies,” Xi said, as quoted by Xinhua. This view has underpinned a decade-long push to achieve dominance in critical industries. The “Made in China 2025” plan targeted ten key sectors—from robotics and electric vehicles to aerospace and biomedicine. Bloomberg Intelligence research shows that China has already attained global leadership in five of those sectors and is catching up fast in seven others.<h2>What’s Xi’s Five-Year Plan?</h2>According to the South China Morning Post, the upcoming Five-Year Plan will focus on developing “new productive forces,” including electric vehicles, artificial intelligence, and new energy materials. Policymakers are also aiming to address bottlenecks in China’s supply chains and reduce reliance on foreign technologies.&nbsp;A report published by a newspaper overseen by the National Development and Reform Commission (NDRC) in March noted that promoting consumption and achieving breakthroughs in core technologies will be central to the plan. Research agencies have been instructed to prioritise semiconductor innovation and energy independence.<h2>Global implications</h2>China’s evolving industrial policy is likely to deepen the global divide over trade. The Biden administration had previously maintained a wait-and-watch approach, but Trump’s return has reignited tariff threats and supply chain shocks—prompting multinational firms to reassess manufacturing hubs.&nbsp;“Private investments… whatever interest rate cuts you do, I don’t think will move significantly higher simply because private investments will be determined more by a relatively certain atmosphere,” Indranil Pan, chief economist at Yes Bank, told Reuters.&nbsp;Meanwhile, Treasury Secretary Scott Bessent noted that both countries theoretically have complementary goals: “We need more manufacturing, they need more consumption. So there is a chance to rebalance together — we’ll see if that’s possible,” he said in an interview with CNBC on 12 May.&nbsp;China’s push to revive and upgrade its manufacturing agenda underscores a widening gulf between its long-term strategy and Washington’s expectations. While the US calls for rebalancing, China appears intent on doubling down on industrial strength, even as trade tensions threaten to escalate further. &nbsp;As the world’s two largest economies dig into opposing positions, the ripple effects on global trade, technology, and geopolitical alignment are bound to be far-reaching. &nbsp;

Business & Economy: This development comes at a time of rising trade tensions, with President Donald Trump’s administration pursuing what it calls “strategic decoupling” from China. 

China is reportedly preparing a new high-tech industrial policy to follow up on its ambitious “Made in China 2025” strategy. This signals the Xi Jinping government's intention to maintain a strong manufacturing base even as the United States ramps up tariffs and calls for economic rebalancing. A modernised version of ‘Made in China’ According to a report by Bloomberg, Beijing is working on a successor to its 2015 “Made in China 2025” industrial plan. While the original initiative sparked a backlash from Western nations, the updated version is expected to prioritise strategic sectors like semiconductors and chip-making equipment, while potentially avoiding the same label to reduce global scrutiny. Sources familiar with the matter told Bloomberg that the new strategy could be unveiled either before or after China announces its 15th Five-Year Plan in March 2026. The manufacturing focus will aim to stabilise the sector’s contribution to GDP and secure China’s position as a global tech powerhouse. US-China tariff tension This development comes at a time of rising trade tensions, with President Donald Trump’s administration pursuing what it calls “strategic decoupling” from China. In April, the US imposed fresh tariffs on Chinese electric vehicles, solar panels, and semiconductors, briefly raising some rates as high as 145 per cent. A subsequent agreement in Geneva reduced the average tariff to around 40 per cent, but the pressure on China remains intense. The US says it wants China to transition from an export-led growth model to one driven by domestic consumption. However, Chinese policymakers have resisted external calls to reduce industrial subsidies and market intervention, insisting that manufacturing remains key to national security and job creation. While the US argues that China needs to raise household consumption levels, Beijing is treading carefully. According to Bloomberg report, officials involved in drafting the upcoming Five-Year Plan are hesitant to include a numerical consumption target. The concern: China lacks the policy tools to boost spending significantly and sustainably. As it stands, household consumption accounts for only about 40 per cent of China’s GDP—well below the 50 to 70 per cent typical of more developed economies. By contrast, investment (largely in infrastructure and manufacturing) still comprises another 40 per cent, reflecting China’s unique growth model. Manufacturing remains the backbone of China During a visit to a ball-bearing factory in Henan on 19 May, President Xi Jinping reaffirmed China’s commitment to strengthening its manufacturing base. “We must keep strengthening the manufacturing sector, adhere to the principles of self-reliance and self-improvement, and master key core technologies,” Xi said, as quoted by Xinhua. This view has underpinned a decade-long push to achieve dominance in critical industries. The “Made in China 2025” plan targeted ten key sectors—from robotics and electric vehicles to aerospace and biomedicine. Bloomberg Intelligence research shows that China has already attained global leadership in five of those sectors and is catching up fast in seven others. What’s Xi’s Five-Year Plan? According to the South China Morning Post, the upcoming Five-Year Plan will focus on developing “new productive forces,” including electric vehicles, artificial intelligence, and new energy materials. Policymakers are also aiming to address bottlenecks in China’s supply chains and reduce reliance on foreign technologies. A report published by a newspaper overseen by the National Development and Reform Commission (NDRC) in March noted that promoting consumption and achieving breakthroughs in core technologies will be central to the plan. Research agencies have been instructed to prioritise semiconductor innovation and energy independence. Global implications China’s evolving industrial policy is likely to deepen the global divide over trade. The Biden administration had previously maintained a wait-and-watch approach, but Trump’s return has reignited tariff threats and supply chain shocks—prompting multinational firms to reassess manufacturing hubs. “Private investments… whatever interest rate cuts you do, I don’t think will move significantly higher simply because private investments will be determined more by a relatively certain atmosphere,” Indranil Pan, chief economist at Yes Bank, told Reuters. Meanwhile, Treasury Secretary Scott Bessent noted that both countries theoretically have complementary goals: “We need more manufacturing, they need more consumption. So there is a chance to rebalance together — we’ll see if that’s possible,” he said in an interview with CNBC on 12 May. China’s push to revive and upgrade its manufacturing agenda underscores a widening gulf between its long-term strategy and Washington’s expectations. While the US calls for rebalancing, China appears intent on doubling down on industrial strength, even as trade tensions threaten to escalate further. As the world’s two largest economies dig into opposing positions, the ripple effects on global trade, technology, and geopolitical alignment are bound to be far-reaching.

Amid global trade pressure, the Xi Jinping's government is developing a new high-tech industrial policy to succeed "Made in China 2025," focusing on strategic sectors.&nbsp;

Beijing pushes for a new Made-in-China plan amid Trump tariff pressure

US President Donald Trump on Sunday (May 25) defended his tariff policy, saying the United States aims to make military equipment, not sneakers and T-shirts.&nbsp;&nbsp;“We're not looking to make sneakers and T-shirts. We want to make military equipment. We want to make big things. We want to make, do the AI thing,” Trump told reporters before boarding Air Force One in New Jersey.&nbsp;“I’m not looking to make T-shirts, to be honest. I'm not looking to make socks. We can do that very well in other locations. We are looking to do chips and computers and lots of other things, and tanks and ships,” said the US president, who ironically has his own merchandise brand, Trump Store, which sells a wide range of products including his famous MAGA hats and apparel. Recently, the Trump Store has also launched ‘TRUMP2028’ merchandise on its website.&nbsp;Also read | <a href="https://www.wionews.com/world/-not-trump-s-war-us-president-calls-putin-crazy-blames-zelensky-for-causing-problems-1748238456076">‘Not Trump’s war’: US President calls Putin ‘CRAZY’, blames Zelensky for ‘causing problems’</a>&nbsp;Trump added that he agrees with the comments made by Treasury Secretary Scott Bessent on April 29 that the US does not necessarily need a “booming textile industry”, drawing criticism from the National Council of Textile Organizations.&nbsp;The American Apparel &amp; Footwear Association also said that the tariffs are not good for the industry. “More tariffs will only mean higher input costs for US manufacturers and higher prices that will hurt lower-income consumers,” AAPA President Steve Lamar said in a statement.&nbsp;<h2>Trump delays EU tariffs</h2>&nbsp;On Sunday (May 25), Trump also said that he will delay the 50 per cent tariff on imports from the European Union, extending his deadline for trade talks from June 1 until July 9.&nbsp;Also read | <a href="https://www.wionews.com/world/trump-delays-50-eu-tariffs-until-july-9-after-talks-with-european-commission-president-1748231775888">Trump delays 50% EU tariffs until July 9 after talks with European Commission President</a>&nbsp;This comes after Trump had a call with the European Commission President, Ursula von der Leyen. According to Trump, she “wants to get down to serious negotiations.”&nbsp;“I told anybody that would listen, they have to do that,” Trump told reporters. He added that Von der Leyen vowed to “rapidly get together and see if we can work something out.”&nbsp;Earlier on Friday (May 23), Trump threatened to impose a 50 per cent tariff starting June 1, claiming that the 27-member bloc had been “very difficult to deal with” on trade, adding that the negotiations were “going nowhere”.

US president ironically has his own merchandise brand, Trump Store, which sells a wide range of products, including his famous MAGA hats and apparel. Recently, the Trump Store has also launched ‘TRUMP2028’ merchandise on its website.

US President Donald Trump on Sunday (May 25) defended his tariff policy, saying the United States aims to make military equipment, not sneakers and T-shirts. “We're not looking to make sneakers and T-shirts. We want to make military equipment. We want to make big things. We want to make, do the AI thing,” Trump told reporters before boarding Air Force One in New Jersey. “I’m not looking to make T-shirts, to be honest. I'm not looking to make socks. We can do that very well in other locations. We are looking to do chips and computers and lots of other things, and tanks and ships,” said the US president, who ironically has his own merchandise brand, Trump Store, which sells a wide range of products including his famous MAGA hats and apparel. Recently, the Trump Store has also launched ‘TRUMP2028’ merchandise on its website. Also read | ‘Not Trump’s war’: US President calls Putin ‘CRAZY’, blames Zelensky for ‘causing problems’ Trump added that he agrees with the comments made by Treasury Secretary Scott Bessent on April 29 that the US does not necessarily need a “booming textile industry”, drawing criticism from the National Council of Textile Organizations. The American Apparel & Footwear Association also said that the tariffs are not good for the industry. “More tariffs will only mean higher input costs for US manufacturers and higher prices that will hurt lower-income consumers,” AAPA President Steve Lamar said in a statement. Trump delays EU tariffs On Sunday (May 25), Trump also said that he will delay the 50 per cent tariff on imports from the European Union, extending his deadline for trade talks from June 1 until July 9. Also read | Trump delays 50% EU tariffs until July 9 after talks with European Commission President This comes after Trump had a call with the European Commission President, Ursula von der Leyen. According to Trump, she “wants to get down to serious negotiations.” “I told anybody that would listen, they have to do that,” Trump told reporters. He added that Von der Leyen vowed to “rapidly get together and see if we can work something out.” Earlier on Friday (May 23), Trump threatened to impose a 50 per cent tariff starting June 1, claiming that the 27-member bloc had been “very difficult to deal with” on trade, adding that the negotiations were “going nowhere”.

US president ironically has his own merchandise brand, Trump Store, which sells a wide range of products, including his famous MAGA hats and apparel. Recently, the Trump Store has also launched ‘TRUMP2028’ merchandise on its website.

Trump wants to ‘do the AI thing, not make T-shirts’—while his store pushes TRUMP2028 merchandise

India’s economy likely expanded 6.7 per cent year-on-year in the January–March quarter, up from 6.2 per cent in the previous quarter, according to a Reuters poll of 56 economists conducted between May 19 and 23.&nbsp;The improvement of Asia’s third-largest Gross Domestic Product (GDP) is reportedly attributed to better agricultural output and a modest pickup in rural demand, even as urban consumption remained sluggish. This acceleration comes at a time when global economic uncertainty is rising, particularly in light of escalating trade tensions triggered by US President Donald Trump’s tariff threats.<h2>What does the poll says?</h2>According to the Reuters poll, rural consumption saw signs of recovery thanks to stronger crop yields and easing inflation. “We are seeing some signs of a pickup on the rural side, by the fact that crop output is better, followed by moderation in inflation pressures,” said Gaura Sengupta, Chief Economist at IDFC First Bank, as quoted by Reuters.&nbsp;Economists at Citi also told Reuters that “resilient agricultural activity continues to bode well for rural consumption,” but flagged that urban demand is still soft, adding they “remain bearish on urban consumption” for the first half of the current fiscal year.&nbsp;While headline GDP is projected to grow 6.7 per cent, Gross Value Added (GVA), a metric that excludes taxes and subsidies is expected to show a more modest rise of 6.4 per cent, Reuters reported.&nbsp;Anubhuti Sahay, Head of India Economic Research at Standard Chartered, told Reuters that much of the GDP boost could be driven by lower subsidy payouts: “Any growth improvement was mainly driven by the positive impact of net indirect taxes as subsidy payments were significantly lower during the period.”<h2>IMF and RBI outlook on India</h2> The International Monetary Fund (IMF) has projected India’s GDP growth at 6.8 per cent for FY25, supported by a strong services sector, robust domestic demand, and demographic advantages. However, the IMF has also cautioned that geopolitical tensions and protectionist policies could pose downside risks.&nbsp;The Reserve Bank of India (RBI), which is expected to cut interest rates for a third consecutive time in June. The central bank has also reiterated that a revival in domestic demand and private investment is critical to sustaining momentum.<h2>Global uncertainty looms large</h2>As per the Reuters report, economists remain concerned about Trump’s intensifying trade war and its ripple effects. The US president has threatened steep tariffs on goods from the European Union and China, while also targeting global tech firms.&nbsp;“Private investments … whatever interest rate cuts you do, I don’t think will move significantly higher simply because private investments will be determined more by a relatively certain atmosphere,” said Indranil Pan, Chief Economist at Yes Bank, in an interview with Reuters.&nbsp;In a separate Reuters survey last month, businesses flagged the negative impact of US tariff policies on global sentiment, a trend that could stall India’s long-anticipated private investment revival.&nbsp;“The recovery is possibly more in numbers than in real improvement in activity,” noted Kunal Kundu, India Economist at Societe Generale, speaking to Reuters. “Weak investment prospects, exacerbated by struggling manufacturing, suggest a growth recovery is multiple quarters away.” The National Statistical Office (NSO) is scheduled to release the official GDP data for the March quarter on May 31. Economists will be watching closely to assess the durability of the rural rebound and the real depth of India’s growth momentum as global headwinds persist. &nbsp;

Business & Economy: The improvement of Asia third-largest Gross Domestic Product (GDP) is reportedly attributed to better agricultural output and a modest pickup in rural demand, even as urban consumption remained sluggish.

India’s economy likely expanded 6.7 per cent year-on-year in the January–March quarter, up from 6.2 per cent in the previous quarter, according to a Reuters poll of 56 economists conducted between May 19 and 23. The improvement of Asia’s third-largest Gross Domestic Product (GDP) is reportedly attributed to better agricultural output and a modest pickup in rural demand, even as urban consumption remained sluggish. This acceleration comes at a time when global economic uncertainty is rising, particularly in light of escalating trade tensions triggered by US President Donald Trump’s tariff threats. What does the poll says? According to the Reuters poll, rural consumption saw signs of recovery thanks to stronger crop yields and easing inflation. “We are seeing some signs of a pickup on the rural side, by the fact that crop output is better, followed by moderation in inflation pressures,” said Gaura Sengupta, Chief Economist at IDFC First Bank, as quoted by Reuters. Economists at Citi also told Reuters that “resilient agricultural activity continues to bode well for rural consumption,” but flagged that urban demand is still soft, adding they “remain bearish on urban consumption” for the first half of the current fiscal year. While headline GDP is projected to grow 6.7 per cent, Gross Value Added (GVA), a metric that excludes taxes and subsidies is expected to show a more modest rise of 6.4 per cent, Reuters reported. Anubhuti Sahay, Head of India Economic Research at Standard Chartered, told Reuters that much of the GDP boost could be driven by lower subsidy payouts: “Any growth improvement was mainly driven by the positive impact of net indirect taxes as subsidy payments were significantly lower during the period.” IMF and RBI outlook on India The International Monetary Fund (IMF) has projected India’s GDP growth at 6.8 per cent for FY25, supported by a strong services sector, robust domestic demand, and demographic advantages. However, the IMF has also cautioned that geopolitical tensions and protectionist policies could pose downside risks. The Reserve Bank of India (RBI), which is expected to cut interest rates for a third consecutive time in June. The central bank has also reiterated that a revival in domestic demand and private investment is critical to sustaining momentum. Global uncertainty looms large As per the Reuters report, economists remain concerned about Trump’s intensifying trade war and its ripple effects. The US president has threatened steep tariffs on goods from the European Union and China, while also targeting global tech firms. “Private investments … whatever interest rate cuts you do, I don’t think will move significantly higher simply because private investments will be determined more by a relatively certain atmosphere,” said Indranil Pan, Chief Economist at Yes Bank, in an interview with Reuters. In a separate Reuters survey last month, businesses flagged the negative impact of US tariff policies on global sentiment, a trend that could stall India’s long-anticipated private investment revival. “The recovery is possibly more in numbers than in real improvement in activity,” noted Kunal Kundu, India Economist at Societe Generale, speaking to Reuters. “Weak investment prospects, exacerbated by struggling manufacturing, suggest a growth recovery is multiple quarters away.” The National Statistical Office (NSO) is scheduled to release the official GDP data for the March quarter on May 31. Economists will be watching closely to assess the durability of the rural rebound and the real depth of India’s growth momentum as global headwinds persist.

Amid global trade tension, Reuters poll says that India's GDP likely expanded 6.7 per cent year-on-year in the January–March quarter.&nbsp;

India’s Jan–March GDP growth seen at 6.7% on rural boost

In a dramatic shift just days before a major tariff deadline, US President Donald Trump has agreed to delay his proposed 50 per cent tariff on European Union goods until July 9, offering both sides a final window to negotiate a comprehensive trade deal.&nbsp;The decision came after a phone conversation between Trump and European Commission President Ursula von der Leyen on Sunday. Trump, who had earlier accused the EU of stalling negotiations, said the bloc is now ready to “get down to serious negotiations.”&nbsp;“I agreed to the extension — July 9, 2025 — It was my privilege to do so,” Trump announced on Truth Social, shortly after the call.<h2>EU-US tariff tension</h2>The extension aligns with the end of a 90-day pause Trump had announced in April to allow room for negotiations. The EU had initially faced a 20 per cent tariff under Trump’s reciprocal trade framework, which had been temporarily reduced to 10 per cent until July 9. However, rising frustration prompted Trump to threaten an escalation to 50 per cent, set to kick in on June 1.&nbsp;Trump accused the EU of unfairly targeting American companies with lawsuits and regulations, and claimed the bloc was “slow-walking” negotiations. But following assurances from von der Leyen, he said it was his “privilege” to agree to an extension.&nbsp;Behind the scenes, Brussels has reportedly shared a new trade framework with Washington, covering both tariff and non-tariff barriers, and focusing on strategic sectors like mutual investments, supply chain security, and economic cooperation. Talks between EU Trade Commissioner Maros Sefcovic and US Trade Representative Jamieson Greer were also held last week to accelerate progress.&nbsp;The stakes are high. A 50 per cent tariff could hit $321 billion worth of goods, potentially reducing US GDP by 0.6 per cent and increasing consumer prices by over 0.3 per cent, according to Bloomberg Economics.&nbsp;Trump also reiterated his long-term manufacturing goals, saying he isn’t aiming to bring back low-end production like textiles but wants the US to focus on semiconductors, military equipment, and AI technologies. He has also threatened to impose 25 per cent tariffs on smartphones made overseas by firms such as Apple and Samsung. &nbsp;Markets responded quickly to the news. US equity-index futures rose in early Asian trading, while the dollar showed signs of recovery after a dip last week. &nbsp;As the new deadline approaches, all eyes are now on Washington and Brussels to see whether the two sides can translate this pause into progress — or set the stage for a broader trade conflict.&nbsp;

Business & Economy: Trump decision came after a phone conversation between Trump and European Commission President Ursula von der Leyen on Sunday. 

In a dramatic shift just days before a major tariff deadline, US President Donald Trump has agreed to delay his proposed 50 per cent tariff on European Union goods until July 9, offering both sides a final window to negotiate a comprehensive trade deal. The decision came after a phone conversation between Trump and European Commission President Ursula von der Leyen on Sunday. Trump, who had earlier accused the EU of stalling negotiations, said the bloc is now ready to “get down to serious negotiations.” “I agreed to the extension — July 9, 2025 — It was my privilege to do so,” Trump announced on Truth Social, shortly after the call. EU-US tariff tension The extension aligns with the end of a 90-day pause Trump had announced in April to allow room for negotiations. The EU had initially faced a 20 per cent tariff under Trump’s reciprocal trade framework, which had been temporarily reduced to 10 per cent until July 9. However, rising frustration prompted Trump to threaten an escalation to 50 per cent, set to kick in on June 1. Trump accused the EU of unfairly targeting American companies with lawsuits and regulations, and claimed the bloc was “slow-walking” negotiations. But following assurances from von der Leyen, he said it was his “privilege” to agree to an extension. Behind the scenes, Brussels has reportedly shared a new trade framework with Washington, covering both tariff and non-tariff barriers, and focusing on strategic sectors like mutual investments, supply chain security, and economic cooperation. Talks between EU Trade Commissioner Maros Sefcovic and US Trade Representative Jamieson Greer were also held last week to accelerate progress. The stakes are high. A 50 per cent tariff could hit $321 billion worth of goods, potentially reducing US GDP by 0.6 per cent and increasing consumer prices by over 0.3 per cent, according to Bloomberg Economics. Trump also reiterated his long-term manufacturing goals, saying he isn’t aiming to bring back low-end production like textiles but wants the US to focus on semiconductors, military equipment, and AI technologies. He has also threatened to impose 25 per cent tariffs on smartphones made overseas by firms such as Apple and Samsung. Markets responded quickly to the news. US equity-index futures rose in early Asian trading, while the dollar showed signs of recovery after a dip last week. As the new deadline approaches, all eyes are now on Washington and Brussels to see whether the two sides can translate this pause into progress — or set the stage for a broader trade conflict.

In a sudden change of heart. US President Donald Trump has agreed to delay his proposed 50 per cent tariff on European Union goods until July 9.&nbsp;

Trump takes sudden U-turn, extends 50 per cent EU tariff deadline to July 9

US President Donald Trump said on Sunday (May 25) that he will delay the 50 per cent tariff on imports from the European Union, extending his deadline for trade talks from June 1 until July 9.&nbsp;This comes after Trump had a call with the European Commission President, Ursula von der Leyen. According to Trump, she “wants to get down to serious negotiations.”&nbsp;“I told anybody that would listen, they have to do that,” Trump told reporters on Sunday in Morristown, New Jersey. Trump added that Von der Leyen vowed to “rapidly get together and see if we can work something out.”&nbsp;Also read | <a href="https://www.wionews.com/world/trump-calls-iran-us-nuclear-talks-very-very-good-says-good-news-soon-1748229109094">Trump calls Iran-US nuclear talks 'very, very good,' says 'good news' soon</a>&nbsp;Earlier on Friday (May 23), Trump threatened to impose a 50 per cent tariff starting June 1, claiming that the 27-member bloc had been “very difficult to deal with” on trade, adding that the negotiations were “going nowhere”.&nbsp;“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,” Trump had said.&nbsp;Also read | <a href="https://www.wionews.com/world/at-least-11-injured-in-south-carolina-beach-town-mass-shooting-1748229383570">At least 11 injured in South Carolina beach town mass shooting</a>&nbsp;However, on Sunday, the president said, “I received a call today from Ursula von der Leyen, President of the European Commission, requesting an extension on the June 1st deadline on the 50% Tariff with respect to Trade and the European Union. I agreed to the extension — July 9, 2025 — It was my privilege to do so. The Commission President said that talks will begin rapidly. Thank you for your attention to this matter!”&nbsp;Meanwhile, Von der Leyen said that the “EU and US share the world's most consequential and close trade relationship.”&nbsp;She added, “Europe is ready to advance talks swiftly and decisively. To reach a good deal, we would need the time until July 9.”

This comes after Trump had a call with the European Commission President, Ursula von der Leyen. According to Trump, she “wants to get down to serious negotiations.”

US President Donald Trump said on Sunday (May 25) that he will delay the 50 per cent tariff on imports from the European Union, extending his deadline for trade talks from June 1 until July 9. This comes after Trump had a call with the European Commission President, Ursula von der Leyen. According to Trump, she “wants to get down to serious negotiations.” “I told anybody that would listen, they have to do that,” Trump told reporters on Sunday in Morristown, New Jersey. Trump added that Von der Leyen vowed to “rapidly get together and see if we can work something out.” Also read | Trump calls Iran-US nuclear talks 'very, very good,' says 'good news' soon Earlier on Friday (May 23), Trump threatened to impose a 50 per cent tariff starting June 1, claiming that the 27-member bloc had been “very difficult to deal with” on trade, adding that the negotiations were “going nowhere”. “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,” Trump had said. Also read | At least 11 injured in South Carolina beach town mass shooting However, on Sunday, the president said, “I received a call today from Ursula von der Leyen, President of the European Commission, requesting an extension on the June 1st deadline on the 50% Tariff with respect to Trade and the European Union. I agreed to the extension — July 9, 2025 — It was my privilege to do so. The Commission President said that talks will begin rapidly. Thank you for your attention to this matter!” Meanwhile, Von der Leyen said that the “EU and US share the world's most consequential and close trade relationship.” She added, “Europe is ready to advance talks swiftly and decisively. To reach a good deal, we would need the time until July 9.”

This comes after Trump had a call with the European Commission President, Ursula von der Leyen. According to Trump, she “wants to get down to serious negotiations.”

Trump delays 50% EU tariffs until July 9 after talks with European Commission President

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

Shortly after calling for a 50 per cent tariff on the European Union, which will start from June 1, President Trump said there is no tariff.&nbsp;During an executive order signing, a Fox News reporter asked, “Mr President, you are a deal maker, deal breaker, what are you trying to achieve with a 50 per cent tariff on the EU?"President Trump replied, “Well, I think there is no tariff, what they will do, they will send their companies into the US and build their plants…if they built their plant here, then they have no tariff at all."When the reporter again asked if he is looking for a deal in nine days, Trump replied, “I am not looking for a deal, we have set the deal at 50 per cent."“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,” Trump wrote on Truth Social.&nbsp;Trump is not actually trying to make a deal. He is just threatening a massive tariff and hoping Europe caves so their companies come crawling to the US.&nbsp;The EU “has been very difficult to deal with,” Trump wrote of the 27-nation bloc. “Our discussions with them are going nowhere!”“It's time we play the game the way I know how to play the game,” said Trump.“EU-US trade is unmatched &amp; must be guided by mutual respect, not threats. We stand ready to defend our interests,” said the EU Trade Commissioner Maros Sefcovic.&nbsp;It will take numerous years for companies to move their facilities to the US and the cost will be massive. Corporations will just pass the cost on to the consumer. Critics argue that this economic intimidation and the sentiment that companies will cave under US pressure is just wishful thinking.&nbsp;

After announcing a 50% tariff on the EU starting June 1, Donald Trump claimed there is “no tariff” if companies relocate to the US. Critics call it economic intimidation, while the EU vows to defend its interests.

Shortly after calling for a 50 per cent tariff on the European Union, which will start from June 1, President Trump said there is no tariff. During an executive order signing, a Fox News reporter asked, “Mr President, you are a deal maker, deal breaker, what are you trying to achieve with a 50 per cent tariff on the EU?" President Trump replied, “Well, I think there is no tariff, what they will do, they will send their companies into the US and build their plants…if they built their plant here, then they have no tariff at all." When the reporter again asked if he is looking for a deal in nine days, Trump replied, “I am not looking for a deal, we have set the deal at 50 per cent." “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,” Trump wrote on Truth Social. Trump is not actually trying to make a deal. He is just threatening a massive tariff and hoping Europe caves so their companies come crawling to the US. The EU “has been very difficult to deal with,” Trump wrote of the 27-nation bloc. “Our discussions with them are going nowhere!” “It's time we play the game the way I know how to play the game,” said Trump. “EU-US trade is unmatched & must be guided by mutual respect, not threats. We stand ready to defend our interests,” said the EU Trade Commissioner Maros Sefcovic. It will take numerous years for companies to move their facilities to the US and the cost will be massive. Corporations will just pass the cost on to the consumer. Critics argue that this economic intimidation and the sentiment that companies will cave under US pressure is just wishful thinking.

After announcing a 50% tariff on the EU starting June 1, Donald Trump claimed there is “no tariff” if companies relocate to the US. Critics call it economic intimidation, while the EU vows to defend its interests.

There is no tariff- Except the 50% one that’s totally non-negotiable: Trump on EU 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.

US President Donald Trump on Friday (May 23) claimed that the European Union has been ‘very difficult’ to deal with in the trade talks and that the current US trade in goods deficit is “totally unacceptable” and announced 50 per cent tariffs on EU from June 1, 2025. Trump took to Truth Social and wrote, "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."Also read: <a href="https://www.wionews.com/world/trump-s-big-warning-to-apple-make-iphones-in-us-not-in-india-or-face-25-tariffs-1748001761590">Trump's BIG warning to Apple: Make iPhones in US, not in India or face 25% tariffs</a> Taking aim at the so-called 'Trade Barriers' put up by the European Union, he wrote, “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 U.S. of more than $250,000,000 a year, a number which is totally unacceptable. Our discussions with them are going nowhere!”&nbsp;

"Therefore, I am recommending a straight 50% 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," Trump added.The EU Commission declined to comment on US President Donald Trump’s comments. The Commission said it would wait for a phone call between EU trade chief Maros Sefcovic and his US counterpart Jamieson Greer to take place at 15:00 GMT.Also read: <a href="https://www.wionews.com/world/russia-ukraine-war-prisoner-swap-news-today-donald-trump-ceasefire-truth-social-1747998350644">Trump hints at 'something big' between Russia and Ukraine, hails major prisoner swap - Does this mean ceasefire is close?</a><h2>European markets fall</h2>Minutes after the US president's announcement European stock markets slid down. Germany’s DAX fell by 1.9%, while Italy’s FTSE MIB has lost 2%.The Stoxx 600 Banks Index, which tracks bank shares in Europe, went down by 1.7%.In London, the FTSE 100 index of blue-chip shares dropped 1.1%, as the trade war rose again.

Trump took to Truth Social and wrote, "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."

US President Donald Trump on Friday (May 23) claimed that the European Union has been ‘very difficult’ to deal with in the trade talks and that the current US trade in goods deficit is “totally unacceptable” and announced 50 per cent tariffs on EU from June 1, 2025. Trump took to Truth Social and wrote, "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." Also read: Trump's BIG warning to Apple: Make iPhones in US, not in India or face 25% tariffs Taking aim at the so-called 'Trade Barriers' put up by the European Union, he wrote, “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 U.S. of more than $250,000,000 a year, a number which is totally unacceptable. Our discussions with them are going nowhere!”

Trump took to Truth Social and wrote, “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.”

US–EU trade war? Trump slaps 50% tariffs on European Union, calls it ‘very difficult to deal with’

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

US President Donald Trump has taken aim at Walmart, urging the retail giant to absorb the cost of tariffs instead of passing them on to consumers. In a sharp rebuke posted on his social media platform Truth Social, Trump accused the company of hiding behind his trade policies while raking in massive profits.&nbsp;“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump wrote. “Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China,&nbsp;they should, as is said, ‘EAT THE TARIFFS’, and not charge valued customers ANYTHING.”&nbsp;His comments follow Walmart’s announcement earlier this week that it would begin raising prices due to increased import duties. The company, a key player in American retail, cited high tariffs on Chinese goods as the primary driver of the looming price hike.&nbsp;Walmart retail price hike ultimatum&nbsp;&nbsp;According to Reuters, Walmart CEO Doug McMillon stated on Thursday that the company could not absorb all the tariff costs because of narrow retail margins. However, he assured that Walmart was committed to shielding customers from rising costs as much as possible — especially on essentials like food.&nbsp;“We will do our best to keep our prices as low as possible,” McMillon told Reuters. “But we won’t be able to absorb all the pressure imposed by the tariffs.”&nbsp;Following Trump’s remarks, Walmart reiterated its stance in a statement to Reuters: “We have always worked to keep our prices as low as possible and we won’t stop,” said company spokesperson Molly Blakeman. “We’ll keep prices as low as we can for as long as we can given the reality of small retail margins.”&nbsp;The retailer, which saw over 3 per cent sales growth to $112 billion in the most recent quarter, has not issued a profit projection for the current quarter, citing the ongoing uncertainty around tariffs.&nbsp;Trump tariff saga&nbsp;&nbsp;President Trump’s latest confrontation with Walmart is part of a broader and aggressive trade strategy that has seen the US impose tariffs on a range of foreign goods and trading partners.&nbsp;The latest salvo came on April 2, 2025, when Trump unveiled a new wave of sweeping import duties during his “Liberation Day” announcement, including a staggering 145 per cent tariff on Chinese goods.&nbsp;In retaliation, Beijing responded with reciprocal tariffs of 125 per cent on American goods. The tit-for-tat escalations disrupted global supply chains, drove up costs for consumers, and rattled financial markets.&nbsp;Although a temporary 90-day tariff pause was agreed , a 10 per cent base tariff on Chinese goods remained in place. The Geneva trade talks held earlier this week were also viewed as a potential turning point.&nbsp;According to a joint statement, both sides have agreed to reduce tariffs: the US has brought down its duties from 145 per cent to 30 per cent, while China has cut its retaliatory tariffs from 125 per cent to 10 per cent.&nbsp;Tariffs have also been raised on goods from Mexico, Vietnam, and South Korea, particularly in industries seen as vital to US national interests.Simultaneously, the US-UK trade deal has entered its final negotiation phase, with both nations agreeing to remove certain non-tariff barriers and consider lowering duties on automotive parts and pharmaceuticals. The deal is expected to be signed later this year, aiming to bolster transatlantic trade post-Brexit.&nbsp;Despite these diplomatic developments, Trump has remained firm on maintaining pressure on countries he views as taking advantage of the American market. Retailers like Walmart, which source about one-third of their products from overseas, primarily China and Mexico are reportedly caught in the middle, forced to balance profit margins against political rhetoric.&nbsp;With more than 4,000 stores across the US and 90 per cent of the population living within 10 miles of one, Walmart’s decision to increase prices may have broader implications for American consumers and for Trump’s own inflation-fighting narrative ahead of the 2024 elections.

Business & Economy: Trump comments came after Walmart announced price increases due to high tariffs on Chinese imports, identifying them as the main factor for the price hike.

US President Donald Trump has taken aim at Walmart, urging the retail giant to absorb the cost of tariffs instead of passing them on to consumers. In a sharp rebuke posted on his social media platform Truth Social, Trump accused the company of hiding behind his trade policies while raking in massive profits. “Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump wrote. “Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China, they should, as is said, ‘EAT THE TARIFFS’, and not charge valued customers ANYTHING.” His comments follow Walmart’s announcement earlier this week that it would begin raising prices due to increased import duties. The company, a key player in American retail, cited high tariffs on Chinese goods as the primary driver of the looming price hike. Walmart retail price hike ultimatum According to Reuters, Walmart CEO Doug McMillon stated on Thursday that the company could not absorb all the tariff costs because of narrow retail margins. However, he assured that Walmart was committed to shielding customers from rising costs as much as possible — especially on essentials like food. “We will do our best to keep our prices as low as possible,” McMillon told Reuters. “But we won’t be able to absorb all the pressure imposed by the tariffs.” Following Trump’s remarks, Walmart reiterated its stance in a statement to Reuters: “We have always worked to keep our prices as low as possible and we won’t stop,” said company spokesperson Molly Blakeman. “We’ll keep prices as low as we can for as long as we can given the reality of small retail margins.” The retailer, which saw over 3 per cent sales growth to $112 billion in the most recent quarter, has not issued a profit projection for the current quarter, citing the ongoing uncertainty around tariffs. Trump tariff saga President Trump’s latest confrontation with Walmart is part of a broader and aggressive trade strategy that has seen the US impose tariffs on a range of foreign goods and trading partners. The latest salvo came on April 2, 2025, when Trump unveiled a new wave of sweeping import duties during his “Liberation Day” announcement, including a staggering 145 per cent tariff on Chinese goods. In retaliation, Beijing responded with reciprocal tariffs of 125 per cent on American goods. The tit-for-tat escalations disrupted global supply chains, drove up costs for consumers, and rattled financial markets. Although a temporary 90-day tariff pause was agreed , a 10 per cent base tariff on Chinese goods remained in place. The Geneva trade talks held earlier this week were also viewed as a potential turning point. According to a joint statement, both sides have agreed to reduce tariffs: the US has brought down its duties from 145 per cent to 30 per cent, while China has cut its retaliatory tariffs from 125 per cent to 10 per cent. Tariffs have also been raised on goods from Mexico, Vietnam, and South Korea, particularly in industries seen as vital to US national interests. Simultaneously, the US-UK trade deal has entered its final negotiation phase, with both nations agreeing to remove certain non-tariff barriers and consider lowering duties on automotive parts and pharmaceuticals. The deal is expected to be signed later this year, aiming to bolster transatlantic trade post-Brexit. Despite these diplomatic developments, Trump has remained firm on maintaining pressure on countries he views as taking advantage of the American market. Retailers like Walmart, which source about one-third of their products from overseas, primarily China and Mexico are reportedly caught in the middle, forced to balance profit margins against political rhetoric. With more than 4,000 stores across the US and 90 per cent of the population living within 10 miles of one, Walmart’s decision to increase prices may have broader implications for American consumers and for Trump’s own inflation-fighting narrative ahead of the 2024 elections.

President Trump criticised Walmart on social media, urging the company to absorb tariff costs rather than transferring them to consumers, highlighting their profits.

Trump tells Walmart to ‘eat the tariffs’ amid retail price hike alarm

<div class="x_elementToProof" data-olk-copy-source="MessageBody">In a decisive move to stabilise its economy and shore up domestic demand, China's first reserve requirement ratio (RRR) cut of 2025 came into effect as re0ported by Reuters. The People&rsquo;s Bank of China (PBOC) slashed the RRR by 0.5 percentage points for eligible financial institutions, a step that will inject roughly 1 trillion yuan (about 139 billion US dollars) of long-term liquidity into the banking system.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">The RRR cut, which took effect on May 15, is expected to reduce borrowing costs, ease liquidity pressures in the financial sector, and boost lending to businesses and consumers. The central bank also reduced the RRR to zero for auto financing and financial leasing companies, a move aimed at stimulating spending on vehicles and equipment upgrades.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">This is part of a broader package of monetary easing measures announced earlier this month, including a 10-basis point reduction in the 7-day reverse repo rate to 1.40 per cent and increased support through targeted relending facilities.&nbsp;</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">The stimulus measures also include expanded equity investment capacity for insurance companies by 60 billion yuan, mortgage rate reductions for certain homebuyers, and new relending tools to support tech bond purchases and elderly care investments.</div>
<h2 class="x_elementToProof">Why Now?</h2>
<div class="x_elementToProof">The RRR cut appears strategically timed, comes just days after high-stakes trade talks between Chinese officials and a US delegation led by Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer took place in Switzerland.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Analysts say the liquidity injection is more than just monetary policy, it&rsquo;s a tactical move designed to buffer the domestic economy from the adverse effects of prolonged tariff tensions with the US. China has been under growing pressure as its export-driven industries face rising costs and declining overseas demand.</div>
<h2 class="x_elementToProof">Trump&rsquo;s Tariff War: A Trade Deal Still Hanging</h2>
<div class="x_elementToProof">The fresh policy moves come against the backdrop of former US President Donald Trump&rsquo;s aggressive tariff regime, which has sent shockwaves through the global economy. According to the Peterson Institute for International Economics, the US under Trump imposed tariffs on over 360 billion US dollars&rsquo; worth of Chinese goods between 2018 and 2020 &mdash; with some levies reaching up to 25 per cent.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">The latest salvo came on April 2, 2025, when Trump unveiled a new wave of sweeping import duties during his &ldquo;Liberation Day&rdquo; announcement &mdash; including a staggering 145 per cent tariff on Chinese goods.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">In retaliation, Beijing responded with reciprocal tariffs of 125 per cent on American goods. The tit-for-tat escalations disrupted global supply chains, drove up costs for consumers, and rattled financial markets.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Although a temporary 90-day tariff pause was agreed , a 10 per cent base tariff on Chinese goods remained in place. The Geneva trade talks held earlier this week were also viewed as a potential turning point. According to a joint statement, both sides have agreed to reduce tariffs: the US has brought down its duties from 145 per cent to 30 per cent, while China has cut its retaliatory tariffs from 125 per cent to 10 per cent.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">As the US-China trade saga enters a new chapter, China&rsquo;s monetary policy pivot underscores a shifting global narrative. No longer content to merely defend its position, Beijing is now proactively reshaping its internal economic resilience.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">While trade diplomacy plays out on the world stage, the PBOC&rsquo;s RRR cut and accompanying stimulus measures signal that China is preparing for a long-haul game &mdash; one that blends tactical monetary easing with strategic economic recalibration.</div>

Business & Economy: This strategic move is expected to infuse approximately trillion yuan, equivalent to about billion US dollars, into the banking system, fostering long-term stability.

In a decisive move to stabilise its economy and shore up domestic demand, China's first reserve requirement ratio (RRR) cut of 2025 came into effect as re0ported by Reuters. The People’s Bank of China (PBOC) slashed the RRR by 0.5 percentage points for eligible financial institutions, a step that will inject roughly 1 trillion yuan (about 139 billion US dollars) of long-term liquidity into the banking system. The RRR cut, which took effect on May 15, is expected to reduce borrowing costs, ease liquidity pressures in the financial sector, and boost lending to businesses and consumers. The central bank also reduced the RRR to zero for auto financing and financial leasing companies, a move aimed at stimulating spending on vehicles and equipment upgrades. This is part of a broader package of monetary easing measures announced earlier this month, including a 10-basis point reduction in the 7-day reverse repo rate to 1.40 per cent and increased support through targeted relending facilities. The stimulus measures also include expanded equity investment capacity for insurance companies by 60 billion yuan, mortgage rate reductions for certain homebuyers, and new relending tools to support tech bond purchases and elderly care investments. Why Now? The RRR cut appears strategically timed, comes just days after high-stakes trade talks between Chinese officials and a US delegation led by Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer took place in Switzerland. Analysts say the liquidity injection is more than just monetary policy, it’s a tactical move designed to buffer the domestic economy from the adverse effects of prolonged tariff tensions with the US. China has been under growing pressure as its export-driven industries face rising costs and declining overseas demand. Trump’s Tariff War: A Trade Deal Still Hanging The fresh policy moves come against the backdrop of former US President Donald Trump’s aggressive tariff regime, which has sent shockwaves through the global economy. According to the Peterson Institute for International Economics, the US under Trump imposed tariffs on over 360 billion US dollars’ worth of Chinese goods between 2018 and 2020 — with some levies reaching up to 25 per cent. The latest salvo came on April 2, 2025, when Trump unveiled a new wave of sweeping import duties during his “Liberation Day” announcement — including a staggering 145 per cent tariff on Chinese goods. In retaliation, Beijing responded with reciprocal tariffs of 125 per cent on American goods. The tit-for-tat escalations disrupted global supply chains, drove up costs for consumers, and rattled financial markets. Although a temporary 90-day tariff pause was agreed , a 10 per cent base tariff on Chinese goods remained in place. The Geneva trade talks held earlier this week were also viewed as a potential turning point. According to a joint statement, both sides have agreed to reduce tariffs: the US has brought down its duties from 145 per cent to 30 per cent, while China has cut its retaliatory tariffs from 125 per cent to 10 per cent. As the US-China trade saga enters a new chapter, China’s monetary policy pivot underscores a shifting global narrative. No longer content to merely defend its position, Beijing is now proactively reshaping its internal economic resilience. While trade diplomacy plays out on the world stage, the PBOC’s RRR cut and accompanying stimulus measures signal that China is preparing for a long-haul game — one that blends tactical monetary easing with strategic economic recalibration.

China’s first RRR cut for financial institutions in 2025 takes effect amid trump tariff fiasco

<div class="x_elementToProof" data-olk-copy-source="MessageBody">India has formally taken its first retaliatory step against US President Donald Trump&rsquo;s tariff regime by submitting a notice to the World Trade Organization (WTO) proposing counter-duties on selected American goods.&nbsp;</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">The move comes as trade talks between the two nations enter a sensitive phase, with both sides seeking to finalise a comprehensive bilateral deal by late 2025</div>
<h2 class="x_elementToProof">What India has proposed?</h2>
<div class="x_elementToProof">In a notification dated 12 May 2025, India informed the WTO of its intent to &ldquo;suspend concessions or other obligations&rdquo; under global trade rules, in response to the United States&rsquo; tariffs on imported steel and aluminium. According to Reuters, India stated that the US duties would affect $7.6 billion worth of Indian exports, resulting in an estimated $1.91 billion in additional tariffs.&nbsp;</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">As per WTO rules, India is entitled to impose retaliatory duties equal to the value of the damage caused, although it has yet to specify which US products would be targeted.</div>
<h2 class="x_elementToProof">Trump&rsquo;s tariff saga</h2>
<div class="x_elementToProof">The tariff tensions between India and the US escalated sharply in recent months. In March 2025, President Trump extended his earlier tariff policy by reimposing 25 per cent duties on all steel and aluminium imports, including those from India, according to a Reuters report. This action revived the tariff mechanism first deployed during Trump&rsquo;s initial term in 2018 under Section 232 of the Trade Expansion Act.</div>
<div class="x_elementToProof" aria-hidden="true">&nbsp;</div>
<div class="x_elementToProof">Then in April 2025, the United States imposed an additional 26 per cent &ldquo;reciprocal tariff&rdquo; across a broad range of Indian exports, citing India&rsquo;s historically high import duties. According to Reuters, this round of tariffs impacted key Indian sectors such as electronics, gems and jewellery, aluminium components, and auto parts &mdash; industries that previously benefited from US tariffs averaging below 2 per cent.&nbsp;</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">The sharp increase in costs rendered Indian goods less competitive in the American market, leading to a noticeable dip in export volumes, as noted by trade analysts.</div>
<h2 class="x_elementToProof">A shift in India&rsquo;s approach</h2>
<div class="x_elementToProof">Until recently, India had chosen to respond diplomatically to the Trump administration&rsquo;s protectionist moves. Earlier this year, New Delhi slashed import duties on more than 8,500 industrial products, including premium American exports, in an effort to reduce tensions and pave the way for a smoother trade agreement.&nbsp;</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">But with the latest wave of tariffs and Trump&rsquo;s public remarks linking US-India trade ties to the recent ceasefire between India and Pakistan, New Delhi&rsquo;s tone has notably hardened.</div>
<h2 class="x_elementToProof">What lies ahead?</h2>
<div class="x_elementToProof">India&rsquo;s countermeasures come at a precarious time. Both nations are in the final stretch of negotiating a bilateral trade agreement, with India reportedly offering to narrow its tariff gap with the US by nearly two-thirds.&nbsp;</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">But this tit-for-tat move may complicate the discussions. While the WTO permits such retaliation under its safeguard rules, any escalation could undermine the spirit of cooperation both countries have sought to maintain in recent months. </div>
<div class="x_elementToProof">As the world&rsquo;s largest and oldest democracies try to balance protectionism and partnership, the coming weeks will determine whether diplomacy or trade disruption shapes the future of India-US economic relations.</div>
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Business & Economy: New Delhi employs a WTO clause to challenge US tariffs on steel and aluminium, a move involving goods valued at $billion, marking a significant trade action.

India has formally taken its first retaliatory step against US President Donald Trump’s tariff regime by submitting a notice to the World Trade Organization (WTO) proposing counter-duties on selected American goods. The move comes as trade talks between the two nations enter a sensitive phase, with both sides seeking to finalise a comprehensive bilateral deal by late 2025 What India has proposed? In a notification dated 12 May 2025, India informed the WTO of its intent to “suspend concessions or other obligations” under global trade rules, in response to the United States’ tariffs on imported steel and aluminium. According to Reuters, India stated that the US duties would affect $7.6 billion worth of Indian exports, resulting in an estimated $1.91 billion in additional tariffs. As per WTO rules, India is entitled to impose retaliatory duties equal to the value of the damage caused, although it has yet to specify which US products would be targeted. Trump’s tariff saga The tariff tensions between India and the US escalated sharply in recent months. In March 2025, President Trump extended his earlier tariff policy by reimposing 25 per cent duties on all steel and aluminium imports, including those from India, according to a Reuters report. This action revived the tariff mechanism first deployed during Trump’s initial term in 2018 under Section 232 of the Trade Expansion Act. Then in April 2025, the United States imposed an additional 26 per cent “reciprocal tariff” across a broad range of Indian exports, citing India’s historically high import duties. According to Reuters, this round of tariffs impacted key Indian sectors such as electronics, gems and jewellery, aluminium components, and auto parts — industries that previously benefited from US tariffs averaging below 2 per cent. The sharp increase in costs rendered Indian goods less competitive in the American market, leading to a noticeable dip in export volumes, as noted by trade analysts. A shift in India’s approach Until recently, India had chosen to respond diplomatically to the Trump administration’s protectionist moves. Earlier this year, New Delhi slashed import duties on more than 8,500 industrial products, including premium American exports, in an effort to reduce tensions and pave the way for a smoother trade agreement. But with the latest wave of tariffs and Trump’s public remarks linking US-India trade ties to the recent ceasefire between India and Pakistan, New Delhi’s tone has notably hardened. What lies ahead? India’s countermeasures come at a precarious time. Both nations are in the final stretch of negotiating a bilateral trade agreement, with India reportedly offering to narrow its tariff gap with the US by nearly two-thirds. But this tit-for-tat move may complicate the discussions. While the WTO permits such retaliation under its safeguard rules, any escalation could undermine the spirit of cooperation both countries have sought to maintain in recent months. As the world’s largest and oldest democracies try to balance protectionism and partnership, the coming weeks will determine whether diplomacy or trade disruption shapes the future of India-US economic relations.

India proposes first counter move against Trump tariffs, submits notice to WTO

<div class="x_elementToProof" data-olk-copy-source="MessageBody">US inflation is expected to tick higher in April, as fresh data is poised to reflect the early impact of President Donald Trump&rsquo;s tariff spree&mdash;raising questions about the Federal Reserve&rsquo;s next steps and rattling currency markets.</div>
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<div class="x_elementToProof">The Bureau of Labor Statistics will release the April Consumer Price Index (CPI) report today at 12:30 GMT (8:30 a.m. EST), a high-impact data point that could sway the Federal Reserve&rsquo;s rate outlook and shift momentum in the US Dollar.</div>
<h2 class="x_elementToProof">Forecast: Inflation likely to edge up again</h2>
<div class="x_elementToProof">According to the Bureau of Labor Statistics, headline inflation is projected to come in at 2.4 per cent year-over-year in April, unchanged from March&rsquo;s reading. However, on a month-over-month basis, prices are reportedly expected to rise by 0.3 per cent, reversing the 0.1 per cent decline seen in March.</div>
<div class="x_elementToProof">As per Bloomberg, core CPI, which excludes volatile food and energy costs is also forecast to climb 0.3 per cent from the previous month, keeping the annual rate steady at 2.8 per cent, the same as March when core inflation hit a four-year low.</div>
<div class="x_elementToProof">This view is echoed by a Bloomberg survey of economists, which forecasts a 0.3 per cent increase in both headline and core CPI in April. According to Bloomberg, the uptick marks a shift from March&rsquo;s unexpected decline and signals that inflationary pressures are re-emerging as tariffs take hold.</div>
<h2 class="x_elementToProof">Trump tariffs fiasco &nbsp;</h2>
<div class="x_elementToProof">President Trump&rsquo;s &ldquo;Liberation Day&rdquo; announcement on April 2 unveiled sweeping tariffs on Chinese goods and several European imports. Although the administration later paused most new tariffs for 90 days, a 10 per cent duty on Chinese goods remains active and has started filtering through to prices.</div>
<div class="x_elementToProof">According to Bloomberg, categories like toys, apparel, and household goods, many of which are heavily reliant on Chinese supply chains&mdash;could begin to reflect price hikes in April&rsquo;s data, even if the full impact is expected to hit harder in Q3.</div>
<h2 class="x_elementToProof">Fed takes a wait-and-watch approach</h2>
<div class="x_elementToProof">During the Federal Reserve&rsquo;s May 7 policy meeting, the central bank left interest rates unchanged at 4.25 per cent&ndash;4.50 per cent. Fed Chair Jerome Powell acknowledged that &ldquo;the risks of higher inflation and unemployment have risen,&rdquo; but emphasized that it was not yet time to alter the policy path.</div>
<div class="x_elementToProof">Powell noted that &ldquo;near-term inflation expectations have increased due to tariffs&rdquo; and that the Fed&rsquo;s current stance allows room to observe how the data evolves, as reported by Reuters.</div>
<h2 class="x_elementToProof">Washington's trade deal with UK &amp; China&nbsp;</h2>
<div class="x_elementToProof">Adding complexity to the inflation outlook are recent US-China trade talks. Over the weekend, both sides announced progress in Geneva, agreeing to suspend some tariffs for 90 days. According to the joint statement, the US has cut tariffs from 145 per cent to 30 per cent, while China reduced duties from 125 per cent to 10 per cent.</div>
<div class="x_elementToProof">Meanwhile, the &ldquo;reciprocal&rdquo; tariff rate of 10 per cent on British goods remains unchanged, the UK will benefit from exemptions for steel and cars, as well as increased market access for agricultural exports. The deal also leaves room for further negotiation down the line</div>
<div class="x_elementToProof">This truce could ease pressure on global supply chains and retail importers, though its inflation-dampening effects are unlikely to appear in the April data.</div>
<div class="x_elementToProof">With inflation caught between tariffs and slowing demand, the April CPI report may prove pivotal, not just for monetary policy, but for global markets still trying to price in the true cost of Trump&rsquo;s trade war.</div>
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Business & Economy: The Bureau of Labor Statistics will release the April Consumer Price Index (CPI) report today at 12:30 GMT (8:30 a.m. EST).

US inflation is expected to tick higher in April, as fresh data is poised to reflect the early impact of President Donald Trump’s tariff spree—raising questions about the Federal Reserve’s next steps and rattling currency markets. The Bureau of Labor Statistics will release the April Consumer Price Index (CPI) report today at 12:30 GMT (8:30 a.m. EST), a high-impact data point that could sway the Federal Reserve’s rate outlook and shift momentum in the US Dollar. Forecast: Inflation likely to edge up again According to the Bureau of Labor Statistics, headline inflation is projected to come in at 2.4 per cent year-over-year in April, unchanged from March’s reading. However, on a month-over-month basis, prices are reportedly expected to rise by 0.3 per cent, reversing the 0.1 per cent decline seen in March. As per Bloomberg, core CPI, which excludes volatile food and energy costs is also forecast to climb 0.3 per cent from the previous month, keeping the annual rate steady at 2.8 per cent, the same as March when core inflation hit a four-year low. This view is echoed by a Bloomberg survey of economists, which forecasts a 0.3 per cent increase in both headline and core CPI in April. According to Bloomberg, the uptick marks a shift from March’s unexpected decline and signals that inflationary pressures are re-emerging as tariffs take hold. Trump tariffs fiasco President Trump’s “Liberation Day” announcement on April 2 unveiled sweeping tariffs on Chinese goods and several European imports. Although the administration later paused most new tariffs for 90 days, a 10 per cent duty on Chinese goods remains active and has started filtering through to prices. According to Bloomberg, categories like toys, apparel, and household goods, many of which are heavily reliant on Chinese supply chains—could begin to reflect price hikes in April’s data, even if the full impact is expected to hit harder in Q3. Fed takes a wait-and-watch approach During the Federal Reserve’s May 7 policy meeting, the central bank left interest rates unchanged at 4.25 per cent–4.50 per cent. Fed Chair Jerome Powell acknowledged that “the risks of higher inflation and unemployment have risen,” but emphasized that it was not yet time to alter the policy path. Powell noted that “near-term inflation expectations have increased due to tariffs” and that the Fed’s current stance allows room to observe how the data evolves, as reported by Reuters. Washington's trade deal with UK & China Adding complexity to the inflation outlook are recent US-China trade talks. Over the weekend, both sides announced progress in Geneva, agreeing to suspend some tariffs for 90 days. According to the joint statement, the US has cut tariffs from 145 per cent to 30 per cent, while China reduced duties from 125 per cent to 10 per cent. Meanwhile, the “reciprocal” tariff rate of 10 per cent on British goods remains unchanged, the UK will benefit from exemptions for steel and cars, as well as increased market access for agricultural exports. The deal also leaves room for further negotiation down the line This truce could ease pressure on global supply chains and retail importers, though its inflation-dampening effects are unlikely to appear in the April data. With inflation caught between tariffs and slowing demand, the April CPI report may prove pivotal, not just for monetary policy, but for global markets still trying to price in the true cost of Trump’s trade war.

US inflation seen picking up in April as Trump tariffs begin to bite

Buying a new car in the u.S. Just got more expensive. Prices rose 2.5% in april—much faster than usual.
The reason?
New tariffs on vehicle imports from Mexico and Canada

Trump Tariffs: New car prices jump on import tariffs

From Apple to Gm, Many American Firms Have Warned That Tariffs and Retaliatory Levies Will Cost Tens of Billions of Dollars.

Corporate America is Bracing for Significant Damages From Trump's Trade War — and That's Before Most Affected Goods Have Even Landed.

In This Next Report, We Dive Into the Impact of Trump's Multi-front Trade Wars Even as the U.S. Is Looking to Make Trade Deals. Take a Look...

Trump tariff damage: U.S. firms warn of financial hit

Donald Trump&rsquo;s return to the White House has shaken the foundations of the global economy.
In April 2025, the US President launched a sweeping tariff offensive, imposing import duties on major trade partners in a dramatic bid to realign global commerce. The tariffs include a 10 per cent blanket duty on all US imports and a 145 per cent levy on Chinese goods&mdash;marking the harshest hit on America&rsquo;s top trading partner. Additionally, tariffs include 60 per cent on Mexican products, 45 per cent on European Union imports, 35 per cent on Canadian goods, and 25 per cent on South Korean exports.
<h2>Recession risk surges, says Reuters poll</h2>
A Reuters poll conducted from April 1 to 28 among more than 300 economists across 50 countries painted a grim picture. Sixty percent of respondents said the risk of a global recession this year is &ldquo;high&rdquo; or &ldquo;very high.&rdquo; Only 66 economists believed the risk was low, including four who considered it &ldquo;very low.&rdquo;
The poll also revealed that none of the economists surveyed believed the tariffs had a positive impact on global business sentiment. A staggering 92 per cent said the impact was negative, while only 8 per cent considered it neutral&mdash;mostly from India and other emerging economies.
The 2025 global growth forecast has been downgraded from 3.0 per cent to 2.7 per cent, with 28 out of 48 individual country projections revised downward. Economies like Mexico and Canada were among the hardest hit, with Mexico&rsquo;s growth forecast cut to 0.2 per cent and Canada&rsquo;s to 1.2 per cent, according to the Reuters survey.
In contrast, growth projections for China and Russia remained steady at 4.5 per cent and 1.7 per cent, respectively&mdash;indicating that some economies may be better positioned to weather the tariff storm.
<h2>Small businesses raise red flags</h2>
The US Chamber of Commerce, one of the country&rsquo;s most influential business groups, sent a formal letter to the White House warning that continued tariff hikes could cause &ldquo;irreparable harm&rdquo; to small businesses and push the economy into recession, as stated in a Reuters report.
Addressed to Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, the letter urged immediate tariff relief.
&ldquo;Higher costs and disrupted supply chains are endangering small businesses across America,&rdquo; said Suzanne P. Clark, President and CEO of the Chamber, in a statement released on May 2. She added, &ldquo;Whether it is coffee, bananas, cocoa, minerals or numerous other products, the reality is certain things just can&rsquo;t be produced in the United States. Tariffs on such essentials only raise costs for struggling families.&rdquo;
The Chamber requested automatic exclusions for small business importers, a system for case-by-case tariff exemptions where American jobs are at risk, and tariff waivers on goods not readily available in the US.
<h2>Trump admin: No recession, just renegotiation</h2>
Despite mounting concerns, US Treasury Secretary Scott Bessent insisted that the economy is not in recession, according to Reuters. Testifying before the House Appropriations Committee on May 6, Bessent claimed that while first-quarter GDP showed a dip, he expected upward revisions in the coming weeks. He also revealed that the US was in talks with 17 countries to secure new trade deals, though he admitted that no discussions had yet begun with China.
Still, official numbers suggest early signs of distress. According to the US Commerce Department&rsquo;s April 2025 report, the country&rsquo;s GDP contracted by 0.3 per cent in the first quarter&mdash;the first economic shrinkage in three years. Imports dropped 2.8 per cent, reflecting weakening domestic demand, while exports fell 3.6 per cent, indicating reduced global competitiveness due to retaliatory tariffs.
In response, China introduced steep counter-tariffs, prompting multinational corporations to slash revenue forecasts and stall expansion plans. Although the White House has announced a 90-day pause on the most aggressive tariffs, analysts say the damage to business confidence is already done.
&ldquo;It&rsquo;s hard for companies to plan even three months ahead,&rdquo; said James Rossiter, Head of Global Macro Strategy at TD Securities. &ldquo;Let alone envision what five years might look like,&rdquo; as quoted by Reuters in April.
<h2>IMF narrates different story</h2>
Amid the uncertainty, the International Monetary Fund (IMF) offered a more measured outlook, according to a Reuters report. In its April 17 global forecast, the IMF acknowledged that tariff-related uncertainty is &ldquo;literally off the charts&rdquo; and warned of a growing erosion of trust between nations. However, it stopped short of declaring a global recession.
&ldquo;Our new growth projections will include notable markdowns, but not recession,&rdquo; said IMF Managing Director Kristalina Georgieva, speaking at the IMF Spring Meetings in Washington. She emphasized that global share prices had suffered amid heightened trade tensions and called for coordinated policy responses to restore stability.
&ldquo;A better balanced, more resilient world economy is within reach. We must act to secure it,&rdquo; Georgieva urged. She called on Europe to eliminate restrictions on internal trade in services, encouraged China to expand its social safety net to reduce precautionary saving, and urged the US to rein in its growing public debt.
Meanwhile, the World Trade Organization (WTO) projected a decline in global trade volumes due to the Trump tariffs. The European Central Bank reduced its key interest rate, citing growing trade tensions, while the Bank of England warned of increased risks to global growth and financial stability&mdash;developments widely reported by Bloomberg and Reuters.
<h2>From Inflation Control to Stagflation Fears</h2>
As inflationary pressures mount due to higher import costs, economists are now warning of stagflation&mdash;a dangerous blend of slow growth, rising unemployment, and persistent inflation. According to the Reuters survey, 19 out of 29 major central banks are expected to miss their inflation targets in 2025, and more than half may continue to miss them into 2026.
<h2>The Road Ahead</h2>
As negotiations inch forward, the global economy stands at a crossroads. Trump&rsquo;s tariffs have disrupted a fragile post-pandemic recovery, spooked markets, and reignited fears of global economic disintegration. The long-term consequences may extend far beyond trade balances&mdash;impacting jobs, inflation, and investor confidence for years to come.

Business & Economy: In April 2025, the US President launched a sweeping tariff offensive, imposing import duties on major trade partners in a dramatic bid to realign global commerce.

Donald Trump’s return to the White House has shaken the foundations of the global economy. In April 2025, the US President launched a sweeping tariff offensive, imposing import duties on major trade partners in a dramatic bid to realign global commerce. The tariffs include a 10 per cent blanket duty on all US imports and a 145 per cent levy on Chinese goods—marking the harshest hit on America’s top trading partner. Additionally, tariffs include 60 per cent on Mexican products, 45 per cent on European Union imports, 35 per cent on Canadian goods, and 25 per cent on South Korean exports. Recession risk surges, says Reuters poll A Reuters poll conducted from April 1 to 28 among more than 300 economists across 50 countries painted a grim picture. Sixty percent of respondents said the risk of a global recession this year is “high” or “very high.” Only 66 economists believed the risk was low, including four who considered it “very low.” The poll also revealed that none of the economists surveyed believed the tariffs had a positive impact on global business sentiment. A staggering 92 per cent said the impact was negative, while only 8 per cent considered it neutral—mostly from India and other emerging economies. The 2025 global growth forecast has been downgraded from 3.0 per cent to 2.7 per cent, with 28 out of 48 individual country projections revised downward. Economies like Mexico and Canada were among the hardest hit, with Mexico’s growth forecast cut to 0.2 per cent and Canada’s to 1.2 per cent, according to the Reuters survey. In contrast, growth projections for China and Russia remained steady at 4.5 per cent and 1.7 per cent, respectively—indicating that some economies may be better positioned to weather the tariff storm. Small businesses raise red flags The US Chamber of Commerce, one of the country’s most influential business groups, sent a formal letter to the White House warning that continued tariff hikes could cause “irreparable harm” to small businesses and push the economy into recession, as stated in a Reuters report. Addressed to Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, the letter urged immediate tariff relief. “Higher costs and disrupted supply chains are endangering small businesses across America,” said Suzanne P. Clark, President and CEO of the Chamber, in a statement released on May 2. She added, “Whether it is coffee, bananas, cocoa, minerals or numerous other products, the reality is certain things just can’t be produced in the United States. Tariffs on such essentials only raise costs for struggling families.” The Chamber requested automatic exclusions for small business importers, a system for case-by-case tariff exemptions where American jobs are at risk, and tariff waivers on goods not readily available in the US. Trump admin: No recession, just renegotiation Despite mounting concerns, US Treasury Secretary Scott Bessent insisted that the economy is not in recession, according to Reuters. Testifying before the House Appropriations Committee on May 6, Bessent claimed that while first-quarter GDP showed a dip, he expected upward revisions in the coming weeks. He also revealed that the US was in talks with 17 countries to secure new trade deals, though he admitted that no discussions had yet begun with China. Still, official numbers suggest early signs of distress. According to the US Commerce Department’s April 2025 report, the country’s GDP contracted by 0.3 per cent in the first quarter—the first economic shrinkage in three years. Imports dropped 2.8 per cent, reflecting weakening domestic demand, while exports fell 3.6 per cent, indicating reduced global competitiveness due to retaliatory tariffs. In response, China introduced steep counter-tariffs, prompting multinational corporations to slash revenue forecasts and stall expansion plans. Although the White House has announced a 90-day pause on the most aggressive tariffs, analysts say the damage to business confidence is already done. “It’s hard for companies to plan even three months ahead,” said James Rossiter, Head of Global Macro Strategy at TD Securities. “Let alone envision what five years might look like,” as quoted by Reuters in April. IMF narrates different story Amid the uncertainty, the International Monetary Fund (IMF) offered a more measured outlook, according to a Reuters report. In its April 17 global forecast, the IMF acknowledged that tariff-related uncertainty is “literally off the charts” and warned of a growing erosion of trust between nations. However, it stopped short of declaring a global recession. “Our new growth projections will include notable markdowns, but not recession,” said IMF Managing Director Kristalina Georgieva, speaking at the IMF Spring Meetings in Washington. She emphasized that global share prices had suffered amid heightened trade tensions and called for coordinated policy responses to restore stability. “A better balanced, more resilient world economy is within reach. We must act to secure it,” Georgieva urged. She called on Europe to eliminate restrictions on internal trade in services, encouraged China to expand its social safety net to reduce precautionary saving, and urged the US to rein in its growing public debt. Meanwhile, the World Trade Organization (WTO) projected a decline in global trade volumes due to the Trump tariffs. The European Central Bank reduced its key interest rate, citing growing trade tensions, while the Bank of England warned of increased risks to global growth and financial stability—developments widely reported by Bloomberg and Reuters. From Inflation Control to Stagflation Fears As inflationary pressures mount due to higher import costs, economists are now warning of stagflation—a dangerous blend of slow growth, rising unemployment, and persistent inflation. According to the Reuters survey, 19 out of 29 major central banks are expected to miss their inflation targets in 2025, and more than half may continue to miss them into 2026. The Road Ahead As negotiations inch forward, the global economy stands at a crossroads. Trump’s tariffs have disrupted a fragile post-pandemic recovery, spooked markets, and reignited fears of global economic disintegration. The long-term consequences may extend far beyond trade balances—impacting jobs, inflation, and investor confidence for years to come.

Trump tariffs to trigger global recession? Reuters survey says…

<div class="x_elementToProof" data-olk-copy-source="MessageBody">In a provocative move ahead of crucial trade talks in Geneva, US President Donald Trump announced that an 80 per cent tariff on Chinese goods &ldquo;seems right,&rdquo; marking the first time he has floated a specific figure since his administration imposed sweeping levies of up to 145 per cent on imports from China. The statement, posted on Trump&rsquo;s Truth Social account on May 9, comes just hours before US Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer meet Chinese economic chief He Lifeng in Switzerland, in what officials are calling a tentative first step toward resolving deep-rooted trade tensions between the world&rsquo;s two largest economies.</div>
<div class="x_elementToProof" data-olk-copy-source="MessageBody"></div>
<div class="x_elementToProof">&ldquo;China should open up its market to the USA,&nbsp;it would be so good for them!!! Closed markets don&rsquo;t work anymore!!!&rdquo; Trump wrote. He added, &ldquo;80% tariff on China seems right. Up to Scott B,&rdquo; signalling&nbsp;his delegation to explore the feasibility of this new benchmark. According to Reuters, this is Trump&rsquo;s first public suggestion of a specific alternative to the existing tariff structure, which has drawn criticism from industry leaders and allies alike for disrupting global supply chains. Financial markets responded swiftly, with US stock futures dipping and the dollar weakening in Europe before stabilising later in the day.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Speaking from the Oval Office on May 9, Trump said the US would maintain a baseline tariff of 10 per cent on imports even after trade deals are struck, allowing exemptions only for countries offering &ldquo;significant trade terms.&rdquo; He suggested that new trade agreements are on the horizon, stating, &ldquo;We always have a baseline of 10%,&rdquo; and hinted that Bessent had been given room to negotiate down from the current tariff ceiling. The Geneva meeting represents the first face-to-face encounter between US and Chinese trade officials since Trump returned to the White House.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Since taking office for a second term, Trump has escalated his trade offensive, slapping 145 per cent average tariffs on Chinese imports, adding to the tariffs imposed during his first term and those maintained by the Biden administration. In retaliation, China has raised its tariffs on US goods to as high as 125 per cent and imposed export restrictions on rare earth elements vital to sectors like defence, electronics, and green energy. Beijing has also targeted high-profile American exports such as soybeans and liquefied natural gas, intensifying the economic standoff.</div>
<h2 class="x_elementToProof">Geneva Talks: First step or false start?</h2>
<div class="x_elementToProof">The US-China trade talks in Geneva are taking place today, Saturday, May 10, 2025. This meeting marks the first direct negotiation between top officials from both nations since Trump returned to the presidency. US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are representing Washington, while Chinese Vice Premier He Lifeng is leading Beijing&rsquo;s delegation. The talks aim to reopen stalled economic dialogue without preconditions, according to the US Treasury Department&mdash;a move interpreted by analysts as a cautious attempt to de-escalate.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">However, the context remains tense. Trump&rsquo;s public push for an 80 per cent tariff, despite being a step down from the current 145 per cent, may complicate diplomatic efforts. China&rsquo;s reciprocal tariffs of up to 125 per cent and strategic export curbs on rare earth materials continue to set a combative tone. Whether today&rsquo;s talks lead to substantive progress or serve as a diplomatic reset remains uncertain.</div>
<h2 class="x_elementToProof">US-China trade dependency</h2>
<div class="x_elementToProof">Despite the political posturing, economic data paints a picture of deep interdependence between the two superpowers. According to the US Census Bureau, in 2023, the US imported $427 billion worth of goods from China, making it the country&rsquo;s third-largest trading partner after Mexico and Canada. At the same time, US exports to China totalled&nbsp;$148 billion, with key outbound products including soybeans, semiconductors, aircraft, and LNG.</div>
<div class="x_elementToProof">From Beijing&rsquo;s side, the US was China&rsquo;s second-largest export market in 2023, accounting for around 15 per cent of its total exports, according to China&rsquo;s General Administration of Customs. This mutual reliance complicates any attempt at economic decoupling.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Whether Geneva will mark a turning point or simply another headline in the US-China economic standoff remains to be seen. But what is clear is that decisions taken in this weekend&rsquo;s meeting could have far-reaching implications for global trade flows, supply chains, and investor confidence.</div>
<div class="x_elementToProof"></div>

Business & Economy: Trump makes a huge statement ahead of the US-China critical trade meeting in Switzerland on May 10.

In a provocative move ahead of crucial trade talks in Geneva, US President Donald Trump announced that an 80 per cent tariff on Chinese goods “seems right,” marking the first time he has floated a specific figure since his administration imposed sweeping levies of up to 145 per cent on imports from China. The statement, posted on Trump’s Truth Social account on May 9, comes just hours before US Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer meet Chinese economic chief He Lifeng in Switzerland, in what officials are calling a tentative first step toward resolving deep-rooted trade tensions between the world’s two largest economies. “China should open up its market to the USA, it would be so good for them!!! Closed markets don’t work anymore!!!” Trump wrote. He added, “80% tariff on China seems right. Up to Scott B,” signalling his delegation to explore the feasibility of this new benchmark. According to Reuters, this is Trump’s first public suggestion of a specific alternative to the existing tariff structure, which has drawn criticism from industry leaders and allies alike for disrupting global supply chains. Financial markets responded swiftly, with US stock futures dipping and the dollar weakening in Europe before stabilising later in the day. Speaking from the Oval Office on May 9, Trump said the US would maintain a baseline tariff of 10 per cent on imports even after trade deals are struck, allowing exemptions only for countries offering “significant trade terms.” He suggested that new trade agreements are on the horizon, stating, “We always have a baseline of 10%,” and hinted that Bessent had been given room to negotiate down from the current tariff ceiling. The Geneva meeting represents the first face-to-face encounter between US and Chinese trade officials since Trump returned to the White House. Since taking office for a second term, Trump has escalated his trade offensive, slapping 145 per cent average tariffs on Chinese imports, adding to the tariffs imposed during his first term and those maintained by the Biden administration. In retaliation, China has raised its tariffs on US goods to as high as 125 per cent and imposed export restrictions on rare earth elements vital to sectors like defence, electronics, and green energy. Beijing has also targeted high-profile American exports such as soybeans and liquefied natural gas, intensifying the economic standoff. Geneva Talks: First step or false start? The US-China trade talks in Geneva are taking place today, Saturday, May 10, 2025. This meeting marks the first direct negotiation between top officials from both nations since Trump returned to the presidency. US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are representing Washington, while Chinese Vice Premier He Lifeng is leading Beijing’s delegation. The talks aim to reopen stalled economic dialogue without preconditions, according to the US Treasury Department—a move interpreted by analysts as a cautious attempt to de-escalate. However, the context remains tense. Trump’s public push for an 80 per cent tariff, despite being a step down from the current 145 per cent, may complicate diplomatic efforts. China’s reciprocal tariffs of up to 125 per cent and strategic export curbs on rare earth materials continue to set a combative tone. Whether today’s talks lead to substantive progress or serve as a diplomatic reset remains uncertain. US-China trade dependency Despite the political posturing, economic data paints a picture of deep interdependence between the two superpowers. According to the US Census Bureau, in 2023, the US imported $427 billion worth of goods from China, making it the country’s third-largest trading partner after Mexico and Canada. At the same time, US exports to China totalled $148 billion, with key outbound products including soybeans, semiconductors, aircraft, and LNG. From Beijing’s side, the US was China’s second-largest export market in 2023, accounting for around 15 per cent of its total exports, according to China’s General Administration of Customs. This mutual reliance complicates any attempt at economic decoupling. Whether Geneva will mark a turning point or simply another headline in the US-China economic standoff remains to be seen. But what is clear is that decisions taken in this weekend’s meeting could have far-reaching implications for global trade flows, supply chains, and investor confidence.

Trump advises Bessent to keep the 10% tariff baseline ahead of the US-China Geneva talks

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