The Reserve Bank of India (RBI) is taking a cautious stance in the face of escalating global uncertainty. Minutes from the latest Monetary Policy Committee meeting reveal that the central bank paused its rate decisions earlier this month to assess the potential fallout from Donald Trump’s proposed 50% tariffs on Indian goods.

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RBI meeting minutes: Rates on hold to check tariffs impact

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US President Donald Trump on Wednesday (August 5) imposed additional 25 per cent tariffs on India, doubling it, making it 50 per cent now in total. On Tuesday, Trump warned that he would be raising the tariff in the next 24 hours, over India's buying Russian oil amid the ongoing Ukraine war.&nbsp;The US president signed an executive order, imposing additional 25 per cent tariffs on India as they "directly or indirectly" import Russian oil.&nbsp;"I determine that it is necessary and appropriate to impose an additional ad valorem duty on imports of articles of India, which is directly or indirectly importing Russian Federation oil," Trump stated in the order.&nbsp;He added, "Articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25 percent." Trump said that the rate of duty will be effective on or after 12:01 am, 21 days after the date of this order.&nbsp;Should a foreign country retaliate against the United States in response to this action, I may modify this order to ensure the efficacy of the actions herein ordered.<h2>What will happen if India retaliates?</h2>In the executive order, Trump also stated the basis on which the order can be modified in the future. He stated that he might modify the order, "including in light of additional information, recommendations from senior officials, or changed circumstances."&nbsp;If India retaliates, the US president might modify the order to ensure the efficacy of the actions mentioned in the order.&nbsp;"Should a foreign country retaliate against the United States in response to this action, I may modify this order to ensure the efficacy of the actions herein ordered," the order read.&nbsp;"Should the Government of the Russian Federation or a foreign country impacted by this order take significant steps to address the national emergency described in section 1 of this order and align sufficiently with the United States on national security, foreign policy, and economic matters, I may further modify this order," he added.&nbsp;Trump further warned that if his secretary of commerce finds that a country is directly or indirectly importing Russian Federation oil, the Secretary of State, in consultation with the Secretary of the Treasury, and along with other officials will “recommend whether and to what extent I should take action as to that country, including whether I should impose an additional ad valorem rate of duty of 25 percent on imports of articles of that country.”

The US president signed an executive order, imposing additional 25 per cent tariffs on India as they "directly or indirectly" import Russian oil.

US President Donald Trump on Wednesday (August 5) imposed additional 25 per cent tariffs on India, doubling it, making it 50 per cent now in total. On Tuesday, Trump warned that he would be raising the tariff in the next 24 hours, over India's buying Russian oil amid the ongoing Ukraine war. The US president signed an executive order, imposing additional 25 per cent tariffs on India as they "directly or indirectly" import Russian oil. "I determine that it is necessary and appropriate to impose an additional ad valorem duty on imports of articles of India, which is directly or indirectly importing Russian Federation oil," Trump stated in the order. He added, "Articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25 percent." Trump said that the rate of duty will be effective on or after 12:01 am, 21 days after the date of this order. Should a foreign country retaliate against the United States in response to this action, I may modify this order to ensure the efficacy of the actions herein ordered. What will happen if India retaliates? In the executive order, Trump also stated the basis on which the order can be modified in the future. He stated that he might modify the order, "including in light of additional information, recommendations from senior officials, or changed circumstances." If India retaliates, the US president might modify the order to ensure the efficacy of the actions mentioned in the order. "Should a foreign country retaliate against the United States in response to this action, I may modify this order to ensure the efficacy of the actions herein ordered," the order read. "Should the Government of the Russian Federation or a foreign country impacted by this order take significant steps to address the national emergency described in section 1 of this order and align sufficiently with the United States on national security, foreign policy, and economic matters, I may further modify this order," he added. Trump further warned that if his secretary of commerce finds that a country is directly or indirectly importing Russian Federation oil, the Secretary of State, in consultation with the Secretary of the Treasury, and along with other officials will “recommend whether and to what extent I should take action as to that country, including whether I should impose an additional ad valorem rate of duty of 25 percent on imports of articles of that country.”

The US president signed an executive order, imposing additional 25 per cent tariffs on India as they "directly or indirectly" import Russian oil.

What will happen if India retaliates against US tariffs? Trump WARNS after imposing 50% import duties over buying Russian oil

US President Donald Trump imposed a new set of tariffs on its trading partners on Thursday (July 31). &nbsp;The ‘Liberation Day tariff’ that Trump imposed to punish countries using "unfair trade practices" saw Syria, including Brazil, Laos and Myanmar bear the maximum brunt. According to the list of trade duties shared by the White House, Syria is facing 41 per cent tariffs, while Laos and Myanmar have been imposed with 40 per cent levies. The imposition of these new rates will come into effect from next Friday and not August 1, as announced earlier by the White House.&nbsp;So, for a country like Syria that was embroiled in a civil war since 2011 until 2025 when a new government was formed under Ahmed al-Sharaa by ousting the Bashar al-Assad regime, what could have been the chances of Syrian trade with other countries, including US is something to ponder over.&nbsp;Syria's trade data&nbsp;Historically Syria exported items like petroleum, raw cotton, and textiles to the US but due to the civil war that lasted for over a decade and international sanctions, including from the US, the data currently available is scarce.&nbsp;The textiles mills in Syria's Aleppo, Damascus, Homs, and Hama produced wool, cotton, and nylon that were reportedly exported. Fruits, vegetables, and cereal grains also constituted Syrian export before the start of civil war and international sanctions came into effect.&nbsp;The US sanctions on Syria, restrict trade and investment, only allowing for certain exports, particularly in areas like reconstruction.&nbsp;International sanctions have currently restricted Syrian trade. So, how much is the 41 per cent trade sanction imposed by US president Donald Trump going to impact Syria would need to be watched.&nbsp;New Tariff Schedule Targets Dozens of Countries&nbsp;The revised tariff schedule imposes additional duties on imports from over 80 countries and territories. Depending on each country’s trade behaviour and current duty rates under the Harmonized Tariff Schedule of the United States (HTSUS), new tariffs range from 10% to 41%. While India and Kazakhstan face a 25% duty, Laos and Myanmar are subject to 40% levies. South Korea, which has also struck a deal with US faces 15% tariff along with Japan. The European Union will face adjusted tariffs based on whether goods already carry a duty rate below or above 15%. South Africa, Syria, Libya, and Serbia face steep tariffs between 30% and 41%.&nbsp;&nbsp;

For a country like Syria that was embroiled in a civil war since 2011 until 2025 when a new government was formed what could have been the chances of Syrian trade with other countries is something to ponder over.

US President Donald Trump imposed a new set of tariffs on its trading partners on Thursday (July 31). The ‘Liberation Day tariff’ that Trump imposed to punish countries using "unfair trade practices" saw Syria, including Brazil, Laos and Myanmar bear the maximum brunt. According to the list of trade duties shared by the White House, Syria is facing 41 per cent tariffs, while Laos and Myanmar have been imposed with 40 per cent levies. The imposition of these new rates will come into effect from next Friday and not August 1, as announced earlier by the White House. So, for a country like Syria that was embroiled in a civil war since 2011 until 2025 when a new government was formed under Ahmed al-Sharaa by ousting the Bashar al-Assad regime, what could have been the chances of Syrian trade with other countries, including US is something to ponder over. Syria's trade data Historically Syria exported items like petroleum, raw cotton, and textiles to the US but due to the civil war that lasted for over a decade and international sanctions, including from the US, the data currently available is scarce. The textiles mills in Syria's Aleppo, Damascus, Homs, and Hama produced wool, cotton, and nylon that were reportedly exported. Fruits, vegetables, and cereal grains also constituted Syrian export before the start of civil war and international sanctions came into effect. The US sanctions on Syria, restrict trade and investment, only allowing for certain exports, particularly in areas like reconstruction. International sanctions have currently restricted Syrian trade. So, how much is the 41 per cent trade sanction imposed by US president Donald Trump going to impact Syria would need to be watched. New Tariff Schedule Targets Dozens of Countries The revised tariff schedule imposes additional duties on imports from over 80 countries and territories. Depending on each country’s trade behaviour and current duty rates under the Harmonized Tariff Schedule of the United States (HTSUS), new tariffs range from 10% to 41%. While India and Kazakhstan face a 25% duty, Laos and Myanmar are subject to 40% levies. South Korea, which has also struck a deal with US faces 15% tariff along with Japan. The European Union will face adjusted tariffs based on whether goods already carry a duty rate below or above 15%. South Africa, Syria, Libya, and Serbia face steep tariffs between 30% and 41%.

For a country like Syria that was embroiled in a civil war since 2011 until 2025 when a new government was formed what could have been the chances of Syrian trade with other countries is something to ponder over.

Trump slaps Syria with maximum 41 per cent tariff. Does it even export anything to US?

As tariffs and trade remain in the headlines, US President Donald Trump on Thursday (July 31) said that the tariffs are making America great and "rich again". He stressed that the US has successfully countered this "onslaught of tariffs" used against it.&nbsp;The US president took to Truth Social, saying that the tariffs were used against the US for decades, coupled with "pathetic and crooked politicians."&nbsp;"Tariffs are making America GREAT &amp; RICH Again. They were successfully used against the USA for decades and, coupled with really dumb, pathetic, and crooked politicians, we’re having a devastating impact on the future, and even the survival, of our country," he wrote in the post.&nbsp;Trump added that it has completely changed now, stressing that America was a dead country a year ago, but now it is the hottest country in the world.&nbsp;"Now the tide has completely turned, and America has successfully countered this onslaught of Tariffs used against it. ONE YEAR AGO, AMERICA WAS A DEAD COUNTRY, NOW IT IS THE “HOTTEST”COUNTRY ANYWHERE IN THE WORLD. CONGRATULATIONS TO ALL!," he added.&nbsp;This comes a day after Trump imposed 25 per cent tariffs on India, along with penalties for several reasons, effective from August 1. He said that the US has a massive trade deficit with India.&nbsp;Trump took to Truth Social on Wednesday, and while noting that India is a "friend", said that relatively, the US has done “little business with them because their tariffs are far too high.” The US president added that India's tariffs are among the “highest in the world, and they have the most strenuous and obnoxious non-monetary trade barriers of any country.”&nbsp;Trump continued, as he raised concerns over India buying the majority of its military equipment from Russia, at a time when everyone wants Russia to stop the war in Ukraine. Trump announced to put penalties on India, along with the 25 per cent tariffs, starting on August 1.<h2>Here's how India reacted</h2>Hours after Trump imposed tariffs on India, the Indian Ministry of Commerce and Industry reacted to the US imposing 25 per cent tariffs on India. It stated that the government is studying the implications of tariffs.&nbsp;The ministry said that the government has taken note of a statement by the US President on bilateral trade. "The Government is studying its implications."&nbsp;It further noted that India and the US have been engaged in negotiations on concluding a fair, balanced, and mutually beneficial bilateral trade agreement over the last few months.

Day after Trump imposed tariffs on India, he posted on Truth Social, saying that tariffs has made America hottest country in the world, stressing that one year ago, it was a dead country. 

As tariffs and trade remain in the headlines, US President Donald Trump on Thursday (July 31) said that the tariffs are making America great and "rich again". He stressed that the US has successfully countered this "onslaught of tariffs" used against it. The US president took to Truth Social, saying that the tariffs were used against the US for decades, coupled with "pathetic and crooked politicians." "Tariffs are making America GREAT & RICH Again. They were successfully used against the USA for decades and, coupled with really dumb, pathetic, and crooked politicians, we’re having a devastating impact on the future, and even the survival, of our country," he wrote in the post. Trump added that it has completely changed now, stressing that America was a dead country a year ago, but now it is the hottest country in the world. "Now the tide has completely turned, and America has successfully countered this onslaught of Tariffs used against it. ONE YEAR AGO, AMERICA WAS A DEAD COUNTRY, NOW IT IS THE “HOTTEST”COUNTRY ANYWHERE IN THE WORLD. CONGRATULATIONS TO ALL!," he added. This comes a day after Trump imposed 25 per cent tariffs on India, along with penalties for several reasons, effective from August 1. He said that the US has a massive trade deficit with India. Trump took to Truth Social on Wednesday, and while noting that India is a "friend", said that relatively, the US has done “little business with them because their tariffs are far too high.” The US president added that India's tariffs are among the “highest in the world, and they have the most strenuous and obnoxious non-monetary trade barriers of any country.” Trump continued, as he raised concerns over India buying the majority of its military equipment from Russia, at a time when everyone wants Russia to stop the war in Ukraine. Trump announced to put penalties on India, along with the 25 per cent tariffs, starting on August 1. Here's how India reacted Hours after Trump imposed tariffs on India, the Indian Ministry of Commerce and Industry reacted to the US imposing 25 per cent tariffs on India. It stated that the government is studying the implications of tariffs. The ministry said that the government has taken note of a statement by the US President on bilateral trade. "The Government is studying its implications." It further noted that India and the US have been engaged in negotiations on concluding a fair, balanced, and mutually beneficial bilateral trade agreement over the last few months.

Day after Trump imposed tariffs on India, he posted on Truth Social, saying that tariffs has made America hottest country in the world, stressing that one year ago, it was a dead country.&nbsp;

'America HOTTEST country in world': Trump credits tariffs for making US great and rich again

Easing geopolitical uncertainty and signs of progress in US-led trade negotiations reduced investor demand for safe-haven assets. On Thursday, gold prices steadied after a sharp decline. Amid optimism surrounding US trade deals with Japan and potentially the European Union, the metal had dropped 1.3 per cent in the previous session.&nbsp;&nbsp;Meanwhile, spot gold hovered near $3,389.77 an ounce at 8:24 a.m. in Singapore, up 0.1 per cent on the day, as per Bloomberg. Meanwhile, the Bloomberg Dollar Spot Index remained steady, though the dollar has fallen more than 1 per cent this week, providing some support to non-yielding assets like gold.<h2>Trade deals impact on gold’s shine</h2>Gold’s retreat comes after Bloomberg News reported that the European Union may be ready to accept a 15 per cent US tariff on most of its goods. This follows a similar deal with Japan, which included a $550 billion investment commitment into the US economy. The agreements are being viewed as diplomatic victories for President Donald Trump’s administration and a step toward stabilising global trade relations.&nbsp;“Progress in talks between the US and key trading partners hurt demand for haven assets,” Bloomberg noted in its report. The market is also digesting Trump’s warnings of additional tariffs, between 15 and 50 per cent, on countries such as South Korea and India, should they fail to reach trade deals before the August 1 deadline. While these threats cast some shadow, the broader tone remains optimistic, dampening the flight to safety that has boosted gold prices for much of the year.<h2>Yields rise, gold loses appeal</h2>Following the trade development, US Treasury yields rose for the first time in six days, further weighing on bullion. Since gold does not generate interest, it typically underperforms when yields rise, as investors shift to income-generating assets.&nbsp;Meanwhile, traders are closely watching the Federal Reserve’s July policy meeting. According to Bloomberg, money markets currently expect the Fed to keep interest rates steady next week, though a rate cut remains likely before October. There’s a 60 per cent probability of a quarter-point reduction at the September meeting. Lower rates typically support gold, as they reduce the opportunity cost of holding the metal, as per Bloomberg.<h2>Bullion rally may be cooling</h2>Gold prices have surged nearly 30 per cent so far in 2025, fuelled by global trade tensions, Russia’s invasion of Ukraine, and West Asia instability. The metal hit an all-time high of over $3,500 an ounce in April but has since been trading within a narrow band as markets await clearer signals on monetary policy and geopolitics.&nbsp;Still, the recent pullback may indicate that bullish momentum is starting to wane in the absence of fresh catalysts.<h2>Silver and other metals diverge</h2>While gold remained range-bound, silver continued to attract interest, especially from industrial buyers. The white metal steadied after briefly touching its highest level since 2011 earlier this week. According to Bloomberg, its demand is surging due to its widespread use in clean-energy technologies, including solar panels.&nbsp;Moreover, silver’s borrowing costs have risen above historical norms, signalling a supply squeeze. Growing holdings in exchange-traded funds have also reduced the amount of freely available metal in the market. Elsewhere, platinum prices rose modestly, while palladium extended losses.&nbsp;&nbsp;(With inputs from the agencies)&nbsp;

Gold prices have surged nearly 30 per cent so far in 2025, fuelled by global trade tensions, Russia invasion of Ukraine, and West Asia instability. The metal hit an all time high of over $3,500 an ounce in April. 

Easing geopolitical uncertainty and signs of progress in US-led trade negotiations reduced investor demand for safe-haven assets. On Thursday, gold prices steadied after a sharp decline. Amid optimism surrounding US trade deals with Japan and potentially the European Union, the metal had dropped 1.3 per cent in the previous session. Meanwhile, spot gold hovered near $3,389.77 an ounce at 8:24 a.m. in Singapore, up 0.1 per cent on the day, as per Bloomberg. Meanwhile, the Bloomberg Dollar Spot Index remained steady, though the dollar has fallen more than 1 per cent this week, providing some support to non-yielding assets like gold. Trade deals impact on gold’s shine Gold’s retreat comes after Bloomberg News reported that the European Union may be ready to accept a 15 per cent US tariff on most of its goods. This follows a similar deal with Japan, which included a $550 billion investment commitment into the US economy. The agreements are being viewed as diplomatic victories for President Donald Trump’s administration and a step toward stabilising global trade relations. “Progress in talks between the US and key trading partners hurt demand for haven assets,” Bloomberg noted in its report. The market is also digesting Trump’s warnings of additional tariffs, between 15 and 50 per cent, on countries such as South Korea and India, should they fail to reach trade deals before the August 1 deadline. While these threats cast some shadow, the broader tone remains optimistic, dampening the flight to safety that has boosted gold prices for much of the year. Yields rise, gold loses appeal Following the trade development, US Treasury yields rose for the first time in six days, further weighing on bullion. Since gold does not generate interest, it typically underperforms when yields rise, as investors shift to income-generating assets. Meanwhile, traders are closely watching the Federal Reserve’s July policy meeting. According to Bloomberg, money markets currently expect the Fed to keep interest rates steady next week, though a rate cut remains likely before October. There’s a 60 per cent probability of a quarter-point reduction at the September meeting. Lower rates typically support gold, as they reduce the opportunity cost of holding the metal, as per Bloomberg. Bullion rally may be cooling Gold prices have surged nearly 30 per cent so far in 2025, fuelled by global trade tensions, Russia’s invasion of Ukraine, and West Asia instability. The metal hit an all-time high of over $3,500 an ounce in April but has since been trading within a narrow band as markets await clearer signals on monetary policy and geopolitics. Still, the recent pullback may indicate that bullish momentum is starting to wane in the absence of fresh catalysts. Silver and other metals diverge While gold remained range-bound, silver continued to attract interest, especially from industrial buyers. The white metal steadied after briefly touching its highest level since 2011 earlier this week. According to Bloomberg, its demand is surging due to its widespread use in clean-energy technologies, including solar panels. Moreover, silver’s borrowing costs have risen above historical norms, signalling a supply squeeze. Growing holdings in exchange-traded funds have also reduced the amount of freely available metal in the market. Elsewhere, platinum prices rose modestly, while palladium extended losses. (With inputs from the agencies)

Precious metal stabilises after steep drop, as progress on US-EU and Japan trade deals lifts yields and weakens safe-haven appeal.

Gold price steadies as US trade deals dent safe-haven demand

Escalating his tariff war, United States President Donald Trump on Thursday (July 11) sent a letter to Canada Prime Minister Mark Carney stating that his country will face a 35 percent tariff on exports to the United States starting August 1. Trump has sent more than 20 such letters since Monday, &nbsp;including to countries like South Korea, Japan and Brazil. The POTUS had on April 2 announced reciprocal tariffs on all trading partners of the United States in what he called ‘Liberation Day.’ He then paused these tariff rates for a period of 90 days, giving an opportunity to countries to negotiate and seal a deal. In this tenure, Trump has announced a trade deal with China and has said that India is very close to striking a deal.&nbsp;&nbsp;In his letter to Canada, Trump wrote, "Instead of working with the United States, Canada retaliated with its own Tariffs. Starting August 1, 2025, we will charge Canada a Tariff of 35% on Canadian products sent into the United States, separate from all Sectoral Tariffs." Trump posted the letter on his Truth Social platform. Earlier in March 2025, Trump had imposed tiered tariffs on Canada—including 25% on cars/auto parts, 50% on steel and aluminum—as part of his expanding protectionist agenda. Trump justified these tariffs in part by referencing Canada’s alleged failure to combat fentanyl trafficking.

Earlier on July 7, Trump announced fresh tariffs on 14 countries, with the highest rate of 40 per cent being imposed on Myanmar and the Lao People’s Democratic Republic. Japan and South Korea were the first countries named in the list with 25 per cent tariff each. In each of these letters, Trump warned of retaliatory measures if the concerned country increases its tariff against the US. These tariffs would come into effect from August 1 this year.<h2>Trump is keeping the door open for potential reductions or negotiations</h2>&nbsp;In his letter, Trump majorly stated the Fentanyl influx for the reason of steep tariff rates. However, he also said, “I must mention that the flow of Fentanyl is hardly the only challenge we have with Canada, which has many Tariff, and Non-Tariff, Policies and Trade Barriers, which cause unsustainable Trade Deficits against the United States. Canada charges extraordinary Tariffs to our Dairy Farmers up to 400%-and that is even assuming our Dairy Farmers even have access to sell their products to the people of Canada. The Trade Deficit is a major threat to our Economy and, indeed, our National Security!” Later, in providing a window of negotiation of sorts, he said, “If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter. These Tariffs may be modified, upward or downward, depending on our relationship with your Country. You will never be disappointed with The United States of America.”

Donald Trump declared that a 35% tariff on all imports from Canada will take effect August 1, 2025—escalating an already contentious trade conflict between the two nations

Escalating his tariff war, United States President Donald Trump on Thursday (July 11) sent a letter to Canada Prime Minister Mark Carney stating that his country will face a 35 percent tariff on exports to the United States starting August 1. Trump has sent more than 20 such letters since Monday, including to countries like South Korea, Japan and Brazil. The POTUS had on April 2 announced reciprocal tariffs on all trading partners of the United States in what he called ‘Liberation Day.’ He then paused these tariff rates for a period of 90 days, giving an opportunity to countries to negotiate and seal a deal. In this tenure, Trump has announced a trade deal with China and has said that India is very close to striking a deal. In his letter to Canada, Trump wrote, "Instead of working with the United States, Canada retaliated with its own Tariffs. Starting August 1, 2025, we will charge Canada a Tariff of 35% on Canadian products sent into the United States, separate from all Sectoral Tariffs." Trump posted the letter on his Truth Social platform. Earlier in March 2025, Trump had imposed tiered tariffs on Canada—including 25% on cars/auto parts, 50% on steel and aluminum—as part of his expanding protectionist agenda. Trump justified these tariffs in part by referencing Canada’s alleged failure to combat fentanyl trafficking.

Donald Trump declared that a 35% tariff on all imports from Canada will take effect August 1, 2025—escalating an already contentious trade conflict between the two nations

Trump imposes 35% tariff on Canada in escalation of US trade war, mentions how he can 'consider an adjustment'

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

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