China has warned the United States against reigniting trade tensions by reimposing steep tariffs next month, signalling potential retaliation if other countries strike supply chain deals that deliberately cut China out. The warning reflects mounting uncertainty over a fragile trade truce agreed in June, with fresh tariffs now looming as deadlines approach.&nbsp;According to Reuters, the sharp response came through an official commentary in the People’s Daily, the Chinese Communist Party’s flagship newspaper, underscoring the seriousness of Beijing’s position ahead of planned tariff increases.<h2>Fresh tensions over trade truce</h2>Washington and Beijing had reached a tentative framework in June, which eased immediate fears of further escalation. However, with many details unresolved, investors and exporters remain wary that the deal could unravel. President Donald Trump on Monday began notifying trading partners that sharply higher tariffs would resume from 1 August. This reverses an earlier decision in April to delay the full implementation of duties, which was meant to give countries time to negotiate concessions.&nbsp;China now faces a deadline of 12 August to reach a new agreement with the White House that would prevent the return of tariffs that were imposed during earlier rounds of tit-for-tat exchanges. As Reuters reports, average US tariffs on Chinese exports currently stand at 51.1 per cent, while China’s average duties on US goods are around 32.6 per cent, according to the Peterson Institute for International Economics.<h2>Beijing’s warning to trading partners</h2>China’s state media commentary also sent a pointed message to countries in the region considering closer trade ties with the US that could bypass China’s manufacturing base. As per Reuters, Beijing criticised moves by nations to secure tariff reductions with Washington by effectively excluding Chinese inputs from their supply chains.&nbsp;Vietnam, for instance, recently negotiated a reduction in US tariffs from 46 per cent to 20 per cent for its own goods. However, items “transshipped” through Vietnam, typically originating in China, would still face a 40 per cent levy. The Chinese government signalled that it would not accept any arrangement that sacrifices Chinese interests in exchange for US concessions, warning of firm countermeasures.<h2>Uncertainty over global supply chains</h2>The increasingly combative rhetoric highlights the strategic battle over supply chains across Asia. The United States has been working to reduce its dependence on Chinese manufacturing while encouraging regional partners to adopt tougher controls on goods with Chinese origins. Analysts say this approach risks fragmenting trade relationships in the region, forcing countries to balance access to the US market against ties with China.&nbsp;Reuters notes that traders and businesses are closely watching the situation, with concerns that another round of tariff escalation could disrupt global commerce. With the August deadline approaching, the threat of renewed tariffs hangs over an already strained economic relationship, adding to the uncertainty facing exporters, investors, and policymakers alike. &nbsp;

China has warned Asian nations against siding with the US in trade realignment efforts, as Washington reactivates steep tariffs on Chinese goods.

China has warned the United States against reigniting trade tensions by reimposing steep tariffs next month, signalling potential retaliation if other countries strike supply chain deals that deliberately cut China out. The warning reflects mounting uncertainty over a fragile trade truce agreed in June, with fresh tariffs now looming as deadlines approach. According to Reuters, the sharp response came through an official commentary in the People’s Daily, the Chinese Communist Party’s flagship newspaper, underscoring the seriousness of Beijing’s position ahead of planned tariff increases. Fresh tensions over trade truce Washington and Beijing had reached a tentative framework in June, which eased immediate fears of further escalation. However, with many details unresolved, investors and exporters remain wary that the deal could unravel. President Donald Trump on Monday began notifying trading partners that sharply higher tariffs would resume from 1 August. This reverses an earlier decision in April to delay the full implementation of duties, which was meant to give countries time to negotiate concessions. China now faces a deadline of 12 August to reach a new agreement with the White House that would prevent the return of tariffs that were imposed during earlier rounds of tit-for-tat exchanges. As Reuters reports, average US tariffs on Chinese exports currently stand at 51.1 per cent, while China’s average duties on US goods are around 32.6 per cent, according to the Peterson Institute for International Economics. Beijing’s warning to trading partners China’s state media commentary also sent a pointed message to countries in the region considering closer trade ties with the US that could bypass China’s manufacturing base. As per Reuters, Beijing criticised moves by nations to secure tariff reductions with Washington by effectively excluding Chinese inputs from their supply chains. Vietnam, for instance, recently negotiated a reduction in US tariffs from 46 per cent to 20 per cent for its own goods. However, items “transshipped” through Vietnam, typically originating in China, would still face a 40 per cent levy. The Chinese government signalled that it would not accept any arrangement that sacrifices Chinese interests in exchange for US concessions, warning of firm countermeasures. Uncertainty over global supply chains The increasingly combative rhetoric highlights the strategic battle over supply chains across Asia. The United States has been working to reduce its dependence on Chinese manufacturing while encouraging regional partners to adopt tougher controls on goods with Chinese origins. Analysts say this approach risks fragmenting trade relationships in the region, forcing countries to balance access to the US market against ties with China. Reuters notes that traders and businesses are closely watching the situation, with concerns that another round of tariff escalation could disrupt global commerce. With the August deadline approaching, the threat of renewed tariffs hangs over an already strained economic relationship, adding to the uncertainty facing exporters, investors, and policymakers alike.

With US tariffs set to resume on August 1, China issues a stark warning to regional partners like Vietnam, criticising deals that exclude Chinese supply chains and signalling potential diplomatic or trade retaliation.

China threatens retaliation as Trump signals new tariff escalation

The European Union has so far avoided receiving a formal letter from the United States threatening sharply higher tariffs on its goods, even as President Donald Trump moves ahead with plans to impose new duties on other major trading partners starting 1 August, according to EU sources quoted by Reuters.<h2>Trump targets global partners with new tariff wave</h2>President Trump has begun notifying a broad range of trading partners, from Japan and South Korea to Myanmar, of steep new tariffs on goods they sell into the United States. The measures, set to take effect on 1 August, mark a renewed effort to pressure allies into making what Trump calls fairer trade deals.While Japan and South Korea have confirmed receiving letters outlining 25 per cent tariffs on their goods, EU sources familiar with the matter told Reuters on Monday that Brussels has not been sent such a letter.<h2>EU seeks exemptions from baseline 10% levy</h2>Instead, European officials are working urgently to secure exemptions from a proposed US baseline tariff rate of 10 per cent on certain categories of goods. As per Reuters, sources said discussions with the Trump administration are focused on avoiding the worst-case tariff outcome while offering targeted concessions.&nbsp;Three EU sources told Reuters that potential compromises could include accepting limited US tariffs of around 10 per cent on aircraft and parts, some medical equipment, and certain spirits in a broader deal.<h2>Talks may benefit EU carmakers</h2>According to Reuters, two sources also said the EU is examining an arrangement that would allow European automakers to increase the volume of EU-built cars imported at rates below the current 25 per cent tariff, in exchange for maintaining or expanding production in the United States.&nbsp;Such an arrangement would benefit German carmakers in particular, including BMW, Mercedes-Benz, and Volkswagen, which already operate large production facilities in the US. By boosting American production, these firms could secure better access for European-built models.<h2>EU weighs concessions versus tariff risk</h2>The European Commission, which leads trade negotiations for the bloc’s 27 member states, has warned that Brussels may have to choose between accepting a narrower, less balanced deal and facing even greater uncertainty over potential tariffs.&nbsp;According to Reuters, the Commission briefed EU envoys late on Monday that although negotiations were making progress, there were no guarantees the Trump administration would not impose further tariffs or demand additional concessions in future.<h2>Existing tariffs already strain trade ties</h2>The threat of new tariffs comes on top of existing measures that have strained transatlantic trade relations. As per Reuters, the EU already faces 50 per cent US tariffs on its steel and aluminium exports, 25 per cent on cars and car parts, and 10 per cent on most other goods.&nbsp;The United States is also examining possible new tariffs on pharmaceuticals and semiconductors, raising the stakes for European exporters in strategically important sectors.<h2>Critical test for EU–US trade relations</h2>The latest developments underscore the delicate balancing act for EU negotiators as they try to avoid a full-scale trade conflict with Washington while safeguarding European industries. Despite initial hopes for a broader, more balanced trade agreement, EU officials acknowledge they may have to make targeted concessions to head off steeper tariffs and bring some stability to exporters facing an increasingly protectionist US trade policy under Trump.&nbsp;As the 1 August deadline for new tariffs approaches, Brussels faces mounting pressure to finalise any deal that can protect European businesses already grappling with higher costs, disrupted supply chains and geopolitical uncertainty. &nbsp;

While the EU has yet to receive a formal US tariff letter, Brussels is negotiating targeted concessions to avoid steep duties on cars, aircraft, and key exports, as Trump’s aggressive trade push reshapes transatlantic economic ties.

The European Union has so far avoided receiving a formal letter from the United States threatening sharply higher tariffs on its goods, even as President Donald Trump moves ahead with plans to impose new duties on other major trading partners starting 1 August, according to EU sources quoted by Reuters. Trump targets global partners with new tariff wave President Trump has begun notifying a broad range of trading partners, from Japan and South Korea to Myanmar, of steep new tariffs on goods they sell into the United States. The measures, set to take effect on 1 August, mark a renewed effort to pressure allies into making what Trump calls fairer trade deals. While Japan and South Korea have confirmed receiving letters outlining 25 per cent tariffs on their goods, EU sources familiar with the matter told Reuters on Monday that Brussels has not been sent such a letter. EU seeks exemptions from baseline 10% levy Instead, European officials are working urgently to secure exemptions from a proposed US baseline tariff rate of 10 per cent on certain categories of goods. As per Reuters, sources said discussions with the Trump administration are focused on avoiding the worst-case tariff outcome while offering targeted concessions. Three EU sources told Reuters that potential compromises could include accepting limited US tariffs of around 10 per cent on aircraft and parts, some medical equipment, and certain spirits in a broader deal. Talks may benefit EU carmakers According to Reuters, two sources also said the EU is examining an arrangement that would allow European automakers to increase the volume of EU-built cars imported at rates below the current 25 per cent tariff, in exchange for maintaining or expanding production in the United States. Such an arrangement would benefit German carmakers in particular, including BMW, Mercedes-Benz, and Volkswagen, which already operate large production facilities in the US. By boosting American production, these firms could secure better access for European-built models. EU weighs concessions versus tariff risk The European Commission, which leads trade negotiations for the bloc’s 27 member states, has warned that Brussels may have to choose between accepting a narrower, less balanced deal and facing even greater uncertainty over potential tariffs. According to Reuters, the Commission briefed EU envoys late on Monday that although negotiations were making progress, there were no guarantees the Trump administration would not impose further tariffs or demand additional concessions in future. Existing tariffs already strain trade ties The threat of new tariffs comes on top of existing measures that have strained transatlantic trade relations. As per Reuters, the EU already faces 50 per cent US tariffs on its steel and aluminium exports, 25 per cent on cars and car parts, and 10 per cent on most other goods. The United States is also examining possible new tariffs on pharmaceuticals and semiconductors, raising the stakes for European exporters in strategically important sectors. Critical test for EU–US trade relations The latest developments underscore the delicate balancing act for EU negotiators as they try to avoid a full-scale trade conflict with Washington while safeguarding European industries. Despite initial hopes for a broader, more balanced trade agreement, EU officials acknowledge they may have to make targeted concessions to head off steeper tariffs and bring some stability to exporters facing an increasingly protectionist US trade policy under Trump. As the 1 August deadline for new tariffs approaches, Brussels faces mounting pressure to finalise any deal that can protect European businesses already grappling with higher costs, disrupted supply chains and geopolitical uncertainty.

The EU is racing to secure exemptions from looming US tariffs ahead of Trump’s 1 August deadline, as Brussels navigates delicate trade talks to protect key industries.

EU avoids US tariff letter, eyes concessions in talks, sources say

Samsung Electronics has warned of a much steeper-than-expected fall in its second-quarter profit, blaming United States export restrictions on advanced AI chips for China and slow shipments to key customers.<h2>Profit set to plunge 56%, missing forecasts</h2>The South Korean technology giant on Tuesday forecast a 56 per cent drop in operating profit for April–June from a year earlier, far below analyst expectations. According to Reuters, Samsung estimated its operating profit at 4.6 trillion won ($3.32 billion) for the second quarter, well under the 6.2 trillion won average forecast from analysts in LSEG’s SmartEstimate.&nbsp;That would mark its weakest quarterly profit in six quarters, down from 10.4 trillion won a year earlier and 6.7 trillion won in the previous quarter. Revenue is expected to edge down 0.1 per cent year-on-year to 74 trillion won, the company’s filing showed.<h2>US export controls hit AI chip sales</h2>Samsung cited Washington’s curbs on selling advanced artificial intelligence chips to China as a key reason for the disappointing performance. “The DS Division recorded a quarter-on-quarter decline in profit due to inventory value adjustments and the impact of US restrictions on advanced AI chips for China,” Samsung said in a statement on Tuesday.&nbsp;According to Reuters, US authorities last year ordered Taiwan Semiconductor Manufacturing Co to halt shipments of advanced chips used in AI applications to Chinese customers. Samsung now faces similar headwinds, with its own sales of high-bandwidth memory (HBM) products also affected.<h2>Delays in Nvidia chip supply add to woes</h2>Analysts noted that Samsung’s earnings slump also stemmed from production delays in supplying advanced chips to major customer Nvidia, the US-based AI chip leader. Samsung said its upgraded HBM products were “undergoing customer evaluation and proceeding with shipments” but did not provide further detail, as per Reuters.&nbsp;Greg Roh, head of research at Hyundai Motor Securities, told Reuters that the sharp miss would weigh on investor confidence. “The worse-than-expected profit will be negative for investor sentiment,” he said.<h2>Foundry business also under pressure</h2>Samsung also warned of continued weakness in its semiconductor foundry business. The company said earnings fell due to the same export restrictions and related inventory value adjustments, alongside persistently low utilisation rates.&nbsp;However, Samsung expressed some cautious optimism for the second half of the year, forecasting that its foundry losses would narrow as demand recovers and utilisation improves.<h2>Hopes for recovery in the second half</h2>Despite the grim second-quarter outlook, Samsung said it expects its broader earnings to recover gradually in the third quarter. The company is counting on rising sales of HBM chips to non-Nvidia customers and the boost from upcoming smartphone launches.&nbsp;Detailed results, including a business-by-business earnings breakdown, are expected to be released in late July. As Samsung grapples with geopolitical tensions and supply-chain challenges, the earnings warning highlights the growing impact of US–China trade restrictions on global technology supply chains and underscores the risks facing the world’s largest memory chipmaker.

Samsung Electronics warns of a steep Q2 profit decline, down 56% year on year, blaming US chip export controls to China and supply delays to Nvidia, with hopes pinned on a second-half recovery amid foundry and HBM chip headwinds.

Samsung Electronics has warned of a much steeper-than-expected fall in its second-quarter profit, blaming United States export restrictions on advanced AI chips for China and slow shipments to key customers. Profit set to plunge 56%, missing forecasts The South Korean technology giant on Tuesday forecast a 56 per cent drop in operating profit for April–June from a year earlier, far below analyst expectations. According to Reuters, Samsung estimated its operating profit at 4.6 trillion won ($3.32 billion) for the second quarter, well under the 6.2 trillion won average forecast from analysts in LSEG’s SmartEstimate. That would mark its weakest quarterly profit in six quarters, down from 10.4 trillion won a year earlier and 6.7 trillion won in the previous quarter. Revenue is expected to edge down 0.1 per cent year-on-year to 74 trillion won, the company’s filing showed. US export controls hit AI chip sales Samsung cited Washington’s curbs on selling advanced artificial intelligence chips to China as a key reason for the disappointing performance. “The DS Division recorded a quarter-on-quarter decline in profit due to inventory value adjustments and the impact of US restrictions on advanced AI chips for China,” Samsung said in a statement on Tuesday. According to Reuters, US authorities last year ordered Taiwan Semiconductor Manufacturing Co to halt shipments of advanced chips used in AI applications to Chinese customers. Samsung now faces similar headwinds, with its own sales of high-bandwidth memory (HBM) products also affected. Delays in Nvidia chip supply add to woes Analysts noted that Samsung’s earnings slump also stemmed from production delays in supplying advanced chips to major customer Nvidia, the US-based AI chip leader. Samsung said its upgraded HBM products were “undergoing customer evaluation and proceeding with shipments” but did not provide further detail, as per Reuters. Greg Roh, head of research at Hyundai Motor Securities, told Reuters that the sharp miss would weigh on investor confidence. “The worse-than-expected profit will be negative for investor sentiment,” he said. Foundry business also under pressure Samsung also warned of continued weakness in its semiconductor foundry business. The company said earnings fell due to the same export restrictions and related inventory value adjustments, alongside persistently low utilisation rates. However, Samsung expressed some cautious optimism for the second half of the year, forecasting that its foundry losses would narrow as demand recovers and utilisation improves. Hopes for recovery in the second half Despite the grim second-quarter outlook, Samsung said it expects its broader earnings to recover gradually in the third quarter. The company is counting on rising sales of HBM chips to non-Nvidia customers and the boost from upcoming smartphone launches. Detailed results, including a business-by-business earnings breakdown, are expected to be released in late July. As Samsung grapples with geopolitical tensions and supply-chain challenges, the earnings warning highlights the growing impact of US–China trade restrictions on global technology supply chains and underscores the risks facing the world’s largest memory chipmaker.

Samsung forecasts a 56% plunge in Q2 profit, citing US export curbs on AI chips for China and delays in Nvidia-related shipments as key drivers of the downturn.

Samsung flags sharp Q2 profit drop, blames US curbs on AI chip sales to China

Here is a quick reckoner of each country hit by Trump tariff letters, with the percentage of threatened tariff, what has now been announced, and the per cent of trade with the US.


Here is a quick reckoner of each country hit by Trump tariff letters, with the percentage of threatened tariff, what has now been announced, and the per cent of trade with the US. &nbsp;

Trump tariff letters sent out to 14 countries: How much is your country hit? Find out from these slides

Oil prices fell for the third time in four sessions as traders assessed the impact of renewed US tariff threats and a decision by OPEC+ to restore more of its idled production capacity.<h2>Brent nears $69 as supply worries mount</h2>Global benchmark Brent crude slipped toward $69 a barrel on Tuesday, while West Texas Intermediate traded below $68. According to Bloomberg, the declines come as investors react to a wave of letters from US President Donald Trump threatening higher tariffs on key trading partners, while leaving the door open for negotiations ahead of a 1 August implementation date.Trump’s tariff move adds fresh uncertainty to the global demand outlook; compounding market worries about a potential economic slowdown and its impact on energy consumption.<h2>OPEC+ supply increase weighs on prices</h2>Oil markets had initially rebounded on Monday despite OPEC+ confirming at the weekend that it would increase production in August by restoring more of its idled capacity. Officials from the producer group cited strong summer demand as a reason for optimism that the market could absorb the extra barrels.As per Bloomberg, Saudi Arabia also announced it would raise the official selling price of its main crude grade for Asia, underscoring its confidence in regional demand despite broader market jitters.<h2>West Asia tensions simmer despite truce</h2>Market sentiment has been volatile in recent weeks due to geopolitical risks, particularly after the war between Israel and Iran. A fragile ceasefire remains in place, but tensions are simmering once more. According to Bloomberg, shipping in the Red Sea has come under renewed threat, with Iranian-backed Houthi forces claiming responsibility for attacks on vessels near Yemen. On Monday, a second ship was reportedly targeted in the same area, hours after an earlier attack.&nbsp;“These attacks raise supply-chain costs and insurance premiums for oil cargoes,” said Haris Khurshid, chief investment officer at Karobaar Capital LP, speaking to Bloomberg. “But unless there’s a major supply disruption, the impact stays mostly at the margins.”<h2>Global demand outlook under pressure</h2>Traders are also wary of the broader economic implications of Trump’s drawn-out trade war. With higher tariffs threatening to slow growth in key markets, energy demand forecasts face renewed downside risks.&nbsp;“Traders are watching Trump’s new tariff threats and global growth risks, which could soften demand,” Khurshid added. “Looking ahead, we should be paying attention to any new OPEC+ signals about extending or adjusting supply cuts.”<h2>Diesel market tightens despite crude glut fears</h2>Even as crude prices soften on fears of oversupply, signs of tightness are emerging in refined products. According to Bloomberg, US diesel inventories are at their lowest seasonal level since 1996, while European benchmark futures suggest a tighter market than during the peak of the Israel–Iran conflict. These mixed signals highlight the complexity of the current oil landscape, as traders weigh short-term geopolitical risks, OPEC+ production decisions, and the potentially chilling effect of an escalating trade dispute between the United States and its partners.&nbsp;As the 1 August tariff deadline approaches, oil markets will remain acutely sensitive to developments in Washington’s trade negotiations, Middle East security dynamics, and any fresh guidance from OPEC+ about its production strategy for the remainder of the year.

Oil prices fell as Trump renewed tariff threats and OPEC+ production increases stirred demand uncertainty and supply concerns, weighing on market sentiment.

Oil prices fell for the third time in four sessions as traders assessed the impact of renewed US tariff threats and a decision by OPEC+ to restore more of its idled production capacity. Brent nears $69 as supply worries mount Global benchmark Brent crude slipped toward $69 a barrel on Tuesday, while West Texas Intermediate traded below $68. According to Bloomberg, the declines come as investors react to a wave of letters from US President Donald Trump threatening higher tariffs on key trading partners, while leaving the door open for negotiations ahead of a 1 August implementation date. Trump’s tariff move adds fresh uncertainty to the global demand outlook; compounding market worries about a potential economic slowdown and its impact on energy consumption. OPEC+ supply increase weighs on prices Oil markets had initially rebounded on Monday despite OPEC+ confirming at the weekend that it would increase production in August by restoring more of its idled capacity. Officials from the producer group cited strong summer demand as a reason for optimism that the market could absorb the extra barrels. As per Bloomberg, Saudi Arabia also announced it would raise the official selling price of its main crude grade for Asia, underscoring its confidence in regional demand despite broader market jitters. West Asia tensions simmer despite truce Market sentiment has been volatile in recent weeks due to geopolitical risks, particularly after the war between Israel and Iran. A fragile ceasefire remains in place, but tensions are simmering once more. According to Bloomberg, shipping in the Red Sea has come under renewed threat, with Iranian-backed Houthi forces claiming responsibility for attacks on vessels near Yemen. On Monday, a second ship was reportedly targeted in the same area, hours after an earlier attack. “These attacks raise supply-chain costs and insurance premiums for oil cargoes,” said Haris Khurshid, chief investment officer at Karobaar Capital LP, speaking to Bloomberg. “But unless there’s a major supply disruption, the impact stays mostly at the margins.” Global demand outlook under pressure Traders are also wary of the broader economic implications of Trump’s drawn-out trade war. With higher tariffs threatening to slow growth in key markets, energy demand forecasts face renewed downside risks. “Traders are watching Trump’s new tariff threats and global growth risks, which could soften demand,” Khurshid added. “Looking ahead, we should be paying attention to any new OPEC+ signals about extending or adjusting supply cuts.” Diesel market tightens despite crude glut fears Even as crude prices soften on fears of oversupply, signs of tightness are emerging in refined products. According to Bloomberg, US diesel inventories are at their lowest seasonal level since 1996, while European benchmark futures suggest a tighter market than during the peak of the Israel–Iran conflict. These mixed signals highlight the complexity of the current oil landscape, as traders weigh short-term geopolitical risks, OPEC+ production decisions, and the potentially chilling effect of an escalating trade dispute between the United States and its partners. As the 1 August tariff deadline approaches, oil markets will remain acutely sensitive to developments in Washington’s trade negotiations, Middle East security dynamics, and any fresh guidance from OPEC+ about its production strategy for the remainder of the year.

Brent crude slipped toward $69 as traders react to looming US tariffs, OPEC+ output hikes, and fragile Middle East tensions—creating a complex mix of geopolitical risk, demand worries, and refined product tightness.

Oil prices fall as traders assess US tariff threats, OPEC+ supply boost

Japanese Prime Minister Shigeru Ishiba has pledged to continue negotiations with the United States to secure a mutually beneficial trade agreement, after President Donald Trump threatened to impose a 25 per cent tariff on Japanese goods starting 1 August.<h2>Trump’s tariff threat escalates trade tensions</h2>President Trump on Monday formally announced the new 25 per cent tariff on imports from Japan, sharing letters addressed to Prime Minister Ishiba and other leaders on his social media platform. As per Reuters, the letters informed major trade partners, from suppliers like Japan and South Korea to smaller players, of steep new US tariffs.&nbsp;While the tariffs are set to begin on 1 August, Trump suggested he was willing to consider delaying implementation if countries submitted acceptable proposals. According to Reuters, Trump told reporters the deadline was “firm, but not 100% firm,” leaving open the possibility of a negotiated settlement.<h2>Japan seeks balanced deal while avoiding higher tariffs</h2>Prime Minister Ishiba acknowledged that talks so far had helped Tokyo avoid even steeper tariff levels previously floated by Washington. As per Reuters, Trump had at one point signalled tariffs in the range of 30 to 35 per cent.&nbsp;Speaking at a cabinet meeting on Tuesday, Ishiba said: “We have received a proposal from the United States to swiftly proceed with negotiations towards the newly set August 1 deadline, and that depending on Japan’s response, the content of the letter could be revised.”Ishiba added that Japan would “actively seek the chance of an agreement that benefits both countries, while protecting Japan’s national interest.” He also directed cabinet ministers to prepare measures to mitigate the potential impact of tariffs on industries and jobs, as per Reuters.&nbsp;<h2>Trade talks complicated by automotive tariffs</h2>According to Reuters, Japan and the United States failed to reach a deal before the 9 July expiry of a temporary pause on reciprocal tariffs. Talks have been especially fraught over automobiles, which are central to Japan’s export-driven economy. Tokyo has prioritised eliminating the existing 25 per cent US tariff on cars, a demand Washington has resisted.&nbsp;Ishiba’s government is under pressure to avoid damaging concessions ahead of Japan’s upper house election on 20 July. As per Reuters, Ishiba has repeatedly insisted Japan will not make “easy concessions” just for the sake of a quick deal.<h2>Political risks for Ishiba’s government</h2>Analysts warn that the upcoming election complicates Tokyo’s negotiating position. Recent media polls cited by Reuters suggest Ishiba’s ruling coalition could struggle to maintain its majority in the upper chamber, potentially weakening the prime minister’s domestic standing and leverage in talks with Washington.<h2>Economic headwinds add urgency</h2>Japan’s economy faces wider challenges that make avoiding new tariffs all the more urgent. According to Bloomberg, the Japanese government this week delivered its bleakest assessment of the economy in nearly five years, citing weak consumption and manufacturing.&nbsp;Official data show Japan’s economy shrank in the first quarter, with real wages in May falling at their fastest pace in nearly two years. As per Reuters, the threat of US tariffs has also weighed on currency markets, driving the dollar to a two-week high of 146.24 yen and raising already rising import costs.<h2>Impact on exporters and wages</h2>Economists warn that even with the avoided worst-case scenario of 35 per cent tariffs, the planned 25 per cent duty would still be painful for Japan’s manufacturers. Kazuki Fujimoto, an analyst at Japan Research Institute, told Reuters: “While Japan likely averted the worst-case scenario, 25% tariffs would still hurt exporters’ profits by up to 25%.”&nbsp;Fujimoto added that weakening corporate profits could make it “hard to avoid companies from toning down on efforts to hike wages,” compounding risks to domestic demand.<h2>Hope for deal remains despite tough negotiations</h2>Despite the sharp rhetoric and the fast-approaching deadline, both sides continue to hold out hope for a deal. According to Reuters, Ishiba stressed Japan’s commitment to finding a “mutually beneficial” solution that preserves the country’s national interest while meeting US demands.&nbsp;As the 1 August deadline nears, the coming weeks will test Ishiba’s diplomatic skill and determine whether Japan can protect its vital industries without compromising its negotiating principles, while preserving a stable relationship with its most important security ally.

Facing 25% US tariffs and mounting political and economic pressure, Prime Minister Shigeru Ishiba vows to pursue a balanced trade deal with Washington, as auto sector tensions and upcoming elections complicate talks.

Japanese Prime Minister Shigeru Ishiba has pledged to continue negotiations with the United States to secure a mutually beneficial trade agreement, after President Donald Trump threatened to impose a 25 per cent tariff on Japanese goods starting 1 August. Trump’s tariff threat escalates trade tensions President Trump on Monday formally announced the new 25 per cent tariff on imports from Japan, sharing letters addressed to Prime Minister Ishiba and other leaders on his social media platform. As per Reuters, the letters informed major trade partners, from suppliers like Japan and South Korea to smaller players, of steep new US tariffs. While the tariffs are set to begin on 1 August, Trump suggested he was willing to consider delaying implementation if countries submitted acceptable proposals. According to Reuters, Trump told reporters the deadline was “firm, but not 100% firm,” leaving open the possibility of a negotiated settlement. Japan seeks balanced deal while avoiding higher tariffs Prime Minister Ishiba acknowledged that talks so far had helped Tokyo avoid even steeper tariff levels previously floated by Washington. As per Reuters, Trump had at one point signalled tariffs in the range of 30 to 35 per cent. Speaking at a cabinet meeting on Tuesday, Ishiba said: “We have received a proposal from the United States to swiftly proceed with negotiations towards the newly set August 1 deadline, and that depending on Japan’s response, the content of the letter could be revised.” Ishiba added that Japan would “actively seek the chance of an agreement that benefits both countries, while protecting Japan’s national interest.” He also directed cabinet ministers to prepare measures to mitigate the potential impact of tariffs on industries and jobs, as per Reuters. Trade talks complicated by automotive tariffs According to Reuters, Japan and the United States failed to reach a deal before the 9 July expiry of a temporary pause on reciprocal tariffs. Talks have been especially fraught over automobiles, which are central to Japan’s export-driven economy. Tokyo has prioritised eliminating the existing 25 per cent US tariff on cars, a demand Washington has resisted. Ishiba’s government is under pressure to avoid damaging concessions ahead of Japan’s upper house election on 20 July. As per Reuters, Ishiba has repeatedly insisted Japan will not make “easy concessions” just for the sake of a quick deal. Political risks for Ishiba’s government Analysts warn that the upcoming election complicates Tokyo’s negotiating position. Recent media polls cited by Reuters suggest Ishiba’s ruling coalition could struggle to maintain its majority in the upper chamber, potentially weakening the prime minister’s domestic standing and leverage in talks with Washington. Economic headwinds add urgency Japan’s economy faces wider challenges that make avoiding new tariffs all the more urgent. According to Bloomberg, the Japanese government this week delivered its bleakest assessment of the economy in nearly five years, citing weak consumption and manufacturing. Official data show Japan’s economy shrank in the first quarter, with real wages in May falling at their fastest pace in nearly two years. As per Reuters, the threat of US tariffs has also weighed on currency markets, driving the dollar to a two-week high of 146.24 yen and raising already rising import costs. Impact on exporters and wages Economists warn that even with the avoided worst-case scenario of 35 per cent tariffs, the planned 25 per cent duty would still be painful for Japan’s manufacturers. Kazuki Fujimoto, an analyst at Japan Research Institute, told Reuters: “While Japan likely averted the worst-case scenario, 25% tariffs would still hurt exporters’ profits by up to 25%.” Fujimoto added that weakening corporate profits could make it “hard to avoid companies from toning down on efforts to hike wages,” compounding risks to domestic demand. Hope for deal remains despite tough negotiations Despite the sharp rhetoric and the fast-approaching deadline, both sides continue to hold out hope for a deal. According to Reuters, Ishiba stressed Japan’s commitment to finding a “mutually beneficial” solution that preserves the country’s national interest while meeting US demands. As the 1 August deadline nears, the coming weeks will test Ishiba’s diplomatic skill and determine whether Japan can protect its vital industries without compromising its negotiating principles, while preserving a stable relationship with its most important security ally.

Japan is pushing to secure a trade deal with the US before Trump’s 1 August tariff deadline, aiming to shield its key industries while avoiding damaging concessions.

Japan vows to pursue US trade deal as Trump’s tariff deadline looms

South Korea says it will intensify negotiations with the United States in a last-ditch effort to avoid a threatened 25 per cent tariff, as President Donald Trump’s administration sets an August 1 deadline for the new duties.<h2>Trump threatens new tariffs from August 1</h2>President Trump announced on Monday that he would impose a 25 per cent tariff on South Korean goods from 1 August, posting formal letters to President Lee Jae Myung and Japan’s prime minister on his social media platform.&nbsp;In the letter to President Lee, Trump criticised what he called a lopsided trading relationship, urging Seoul to open “heretofore closed markets” and eliminate tariff and non-tariff barriers. According to South Korea’s Industry Ministry, the letter effectively grants a grace period before the new tariffs are enforced, as per Reuters.&nbsp;<h2>Seoul promises intensified negotiations</h2>In response, South Korea’s Industry Ministry said it would use the remaining time to secure a deal that could prevent the tariffs from taking effect. “We will step up negotiations during the remaining period to reach a mutually beneficial result to quickly resolve the uncertainties from tariffs,” the ministry said in an official statement, as quoted by Reuters.&nbsp;&nbsp;As per Reuters, South Korea also plans to use the window to address US concerns about its large trade surplus and overhaul domestic regulations. The ministry said it would pursue reforms through what it described as a “manufacturing renaissance partnership” with Washington.&nbsp;<h2>Record trade surplus draws US scrutiny</h2>As per Korea Customs Service data cited by Reuters, South Korea posted a record $55.6 billion trade surplus with the United States in 2024, up 25 per cent from the previous year. The imbalance has been driven largely by strong car exports, making South Korea a target for Trump’s renewed push on trade.&nbsp;Although the two countries have a free trade agreement, signed in 2007 and revised in 2018, economists note that South Korea’s effective tariff rates on US imports are near zero. However, Washington has continued to argue that non-tariff and regulatory barriers remain a major obstacle.<h2>High-level diplomacy after political upheaval</h2>President Lee Jae Myung, who took office on 4 June after a snap election, faces his first major foreign policy test with these negotiations. Lee has blamed his predecessor’s martial law declaration in December for weakening South Korea’s ability to respond quickly to Trump’s tariff demands.&nbsp;After initially sticking to technical-level discussions, Seoul has moved rapidly to high-level diplomacy. South Korea’s top trade envoy and National Security Advisor Wi Sung-lac have travelled to Washington in recent days for trade and defence talks.<h2>Hopes for a last-minute deal</h2>According to President Lee’s office, Wi met US Secretary of State Marco Rubio in Washington on Monday. The two agreed that a summit between Lee and Trump could help advance negotiations. Lee’s office cited Rubio as saying there was still time to reach a settlement before the deadline. “Tariff letters to major trading partners including South Korea were sent out today but there is still time until tariffs are implemented on August 1 so he hopes the two countries can communicate closely to reach an agreement before that,” Lee’s office said, as quoted by Reuters.&nbsp;&nbsp;Trump himself suggested the deadline was not entirely rigid. Asked if it was firm, he told reporters: “I would say firm, but not 100% firm. If they call up and they say we’d like to do something a different way, we’re going to be open to that.”<h2>Uncertainty for exporters</h2>The Industry Ministry acknowledged in its statement that the new administration did not have enough time after Lee’s inauguration to settle all outstanding issues with Washington, despite what it called “intense negotiations”.&nbsp;As the 1 August deadline looms, the threat of new tariffs casts a shadow over one of Asia’s most critical trade relationships with the United States. For South Korea, securing an exemption could not only protect exporters from fresh costs but also prove that President Lee’s new government can restore stability to a vital alliance after months of domestic political turmoil.

Facing a record trade surplus and rising US pressure, South Korea new government intensifies talks with Washington to prevent steep tariffs, with hopes pinned on high-level diplomacy and a potential Lee-Trump summit.

South Korea says it will intensify negotiations with the United States in a last-ditch effort to avoid a threatened 25 per cent tariff, as President Donald Trump’s administration sets an August 1 deadline for the new duties. Trump threatens new tariffs from August 1 President Trump announced on Monday that he would impose a 25 per cent tariff on South Korean goods from 1 August, posting formal letters to President Lee Jae Myung and Japan’s prime minister on his social media platform. In the letter to President Lee, Trump criticised what he called a lopsided trading relationship, urging Seoul to open “heretofore closed markets” and eliminate tariff and non-tariff barriers. According to South Korea’s Industry Ministry, the letter effectively grants a grace period before the new tariffs are enforced, as per Reuters. Seoul promises intensified negotiations In response, South Korea’s Industry Ministry said it would use the remaining time to secure a deal that could prevent the tariffs from taking effect. “We will step up negotiations during the remaining period to reach a mutually beneficial result to quickly resolve the uncertainties from tariffs,” the ministry said in an official statement, as quoted by Reuters. As per Reuters, South Korea also plans to use the window to address US concerns about its large trade surplus and overhaul domestic regulations. The ministry said it would pursue reforms through what it described as a “manufacturing renaissance partnership” with Washington. Record trade surplus draws US scrutiny As per Korea Customs Service data cited by Reuters, South Korea posted a record $55.6 billion trade surplus with the United States in 2024, up 25 per cent from the previous year. The imbalance has been driven largely by strong car exports, making South Korea a target for Trump’s renewed push on trade. Although the two countries have a free trade agreement, signed in 2007 and revised in 2018, economists note that South Korea’s effective tariff rates on US imports are near zero. However, Washington has continued to argue that non-tariff and regulatory barriers remain a major obstacle. High-level diplomacy after political upheaval President Lee Jae Myung, who took office on 4 June after a snap election, faces his first major foreign policy test with these negotiations. Lee has blamed his predecessor’s martial law declaration in December for weakening South Korea’s ability to respond quickly to Trump’s tariff demands. After initially sticking to technical-level discussions, Seoul has moved rapidly to high-level diplomacy. South Korea’s top trade envoy and National Security Advisor Wi Sung-lac have travelled to Washington in recent days for trade and defence talks. Hopes for a last-minute deal According to President Lee’s office, Wi met US Secretary of State Marco Rubio in Washington on Monday. The two agreed that a summit between Lee and Trump could help advance negotiations. Lee’s office cited Rubio as saying there was still time to reach a settlement before the deadline. “Tariff letters to major trading partners including South Korea were sent out today but there is still time until tariffs are implemented on August 1 so he hopes the two countries can communicate closely to reach an agreement before that,” Lee’s office said, as quoted by Reuters. Trump himself suggested the deadline was not entirely rigid. Asked if it was firm, he told reporters: “I would say firm, but not 100% firm. If they call up and they say we’d like to do something a different way, we’re going to be open to that.” Uncertainty for exporters The Industry Ministry acknowledged in its statement that the new administration did not have enough time after Lee’s inauguration to settle all outstanding issues with Washington, despite what it called “intense negotiations”. As the 1 August deadline looms, the threat of new tariffs casts a shadow over one of Asia’s most critical trade relationships with the United States. For South Korea, securing an exemption could not only protect exporters from fresh costs but also prove that President Lee’s new government can restore stability to a vital alliance after months of domestic political turmoil.

South Korea is racing to negotiate a last-minute trade deal with the US to avoid Trump’s threatened 25% tariffs set to take effect on August 1.

South Korea races to secure US tariff deal before August 1 deadline

Gold prices slipped on Monday as investors tracked evolving signals from the United States on trade policy, with a stronger dollar weighing on bullion demand and markets bracing for tariff-related uncertainty. According to Bloomberg, spot gold fell as much as 0.9 per cent to trade near US$3,306 an ounce during Asian hours, paring last week’s gains as traders grew cautious about shifting US trade dynamics and upcoming tariff deadlines.<h2>Dollar gains put pressure on bullion</h2>A mild strengthening of the US dollar reduced gold’s appeal for investors using other currencies. Bloomberg’s Dollar Spot Index edged up 0.1 per cent in Asian trading, limiting bullion’s safe-haven flows.Spot gold was last quoted down 0.8 per cent at US$3,309.31 an ounce in Singapore on Monday morning.&nbsp;The metal had rallied almost 2 per cent last week but is now consolidating as traders reassess risks around global trade negotiations and the timing of new US tariff announcements. Other precious metals also moved lower, with silver, palladium and platinum all posting declines, according to Bloomberg.<h2>Trade tensions keep markets on edge</h2>Investors remain focused on the complex backdrop of US trade negotiations, with Treasury Secretary Scott Bessent over the weekend hinting at the possibility of extending talks with key partners beyond the initial 9 July notification deadline. Commerce Secretary Howard Lutnick confirmed that new country-specific tariffs are scheduled to take effect on 1 August.&nbsp;As per Bloomberg, these shifting timelines have added to market caution, given the potential for tariffs to disrupt global supply chains and weigh on overall economic growth.<h2>Bullion’s strong year-to-date gains</h2>Despite Monday’s decline, gold remains more than 25 per cent higher for the year, trading roughly US$190 below its all-time high set in April. The rally has been underpinned by strong demand from central banks, heightened geopolitical tensions and steady inflows into bullion-backed exchange-traded funds.&nbsp;According to Bloomberg, the safe-haven asset continues to attract investors seeking to hedge against volatility in equities, currencies and commodity markets amid ongoing uncertainty about global economic prospects. With markets sensitive to any updates on US trade negotiations, analysts expect gold to remain volatile in the coming weeks as traders weigh the timing and scope of new tariff measures and broader policy signals from Washington. (With inputs from the agencies)&nbsp;

Gold slipped nearly 1% amid a firmer dollar and market anxiety over shifting US trade policies, though the metal remains up over 25% this year on safe-haven demand and geopolitical risks.

Gold prices slipped on Monday as investors tracked evolving signals from the United States on trade policy, with a stronger dollar weighing on bullion demand and markets bracing for tariff-related uncertainty. According to Bloomberg, spot gold fell as much as 0.9 per cent to trade near US$3,306 an ounce during Asian hours, paring last week’s gains as traders grew cautious about shifting US trade dynamics and upcoming tariff deadlines. Dollar gains put pressure on bullion A mild strengthening of the US dollar reduced gold’s appeal for investors using other currencies. Bloomberg’s Dollar Spot Index edged up 0.1 per cent in Asian trading, limiting bullion’s safe-haven flows. Spot gold was last quoted down 0.8 per cent at US$3,309.31 an ounce in Singapore on Monday morning. The metal had rallied almost 2 per cent last week but is now consolidating as traders reassess risks around global trade negotiations and the timing of new US tariff announcements. Other precious metals also moved lower, with silver, palladium and platinum all posting declines, according to Bloomberg. Trade tensions keep markets on edge Investors remain focused on the complex backdrop of US trade negotiations, with Treasury Secretary Scott Bessent over the weekend hinting at the possibility of extending talks with key partners beyond the initial 9 July notification deadline. Commerce Secretary Howard Lutnick confirmed that new country-specific tariffs are scheduled to take effect on 1 August. As per Bloomberg, these shifting timelines have added to market caution, given the potential for tariffs to disrupt global supply chains and weigh on overall economic growth. Bullion’s strong year-to-date gains Despite Monday’s decline, gold remains more than 25 per cent higher for the year, trading roughly US$190 below its all-time high set in April. The rally has been underpinned by strong demand from central banks, heightened geopolitical tensions and steady inflows into bullion-backed exchange-traded funds. According to Bloomberg, the safe-haven asset continues to attract investors seeking to hedge against volatility in equities, currencies and commodity markets amid ongoing uncertainty about global economic prospects. With markets sensitive to any updates on US trade negotiations, analysts expect gold to remain volatile in the coming weeks as traders weigh the timing and scope of new tariff measures and broader policy signals from Washington. (With inputs from the agencies)

Gold prices dipped as a stronger US dollar and uncertainty around upcoming tariff decisions prompted cautious trading in precious metals.

Gold slips with investors wary of US trade moves and firm dollar

US President Donald Trump escalated his trade offensive on Sunday, vowing to slap an extra 10 per cent tariff on any country “aligning” with the BRICS bloc, a move that sent industrial metals prices lower on Monday and drew condemnation from the grouping of emerging nations. Trump’s threat on his Truth Social account underscored Washington’s increasingly confrontational trade stance as he warned there would be “no exceptions” for countries perceived to be backing what he labelled “anti-American” BRICS policies.&nbsp;According to Bloomberg, the new levy would be on top of existing tariffs, amplifying fears of a deepening global trade war just as negotiations with key partners enter a critical phase.<h2>Industrial metals extend losses on tariff anxiety</h2>Copper and other industrial metals fell as traders reacted to the latest policy uncertainty. Bloomberg reported copper slid 0.5 per cent to US$9,817 a tonne in Shanghai, marking its third consecutive decline after recently touching a three-month high above US$10,000. Aluminium also dropped 0.5 per cent on the London Metal Exchange as the entire industrial metals complex turned negative.&nbsp;While copper prices had been supported by falling global stockpiles and a weaker US dollar, Trump’s threat of punitive tariffs on BRICS countries introduced a new risk to demand prospects, prompting investors to scale back positions.<h2>A direct warning to BRICS nations</h2>Trump’s message specifically targeted the BRICS grouping, which includes Brazil, Russia, India, China and South Africa, accusing its members of promoting anti-American policies.&nbsp;“Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy,” Trump wrote on Truth Social.&nbsp;

&nbsp;The threat comes just days before a broader 1 August tariff deadline, with Trump already preparing to notify up to 15 countries of new tariff rates this week. US Treasury Secretary Scott Bessent told CNN that while the revised tariffs would kick in from August, there might still be room for negotiation for some partners before the 9 July cut-off.<h2>BRICS leaders condemn US tariffs</h2>Meanwhile, BRICS leaders meeting at a summit over the weekend condemned what they described as Washington’s “indiscriminate” tariff policies. According to AP, the bloc’s joint declaration raised “serious concerns” about the rise of protectionist measures which they said violated World Trade Organization (WTO) rules, threatening to reduce global trade, disrupt supply chains and create widespread uncertainty.Though the statement avoided naming Trump directly, the criticism was aimed squarely at the mercurial US approach to tariffs, which has oscillated between threats and last-minute deal-making.&nbsp;The BRICS bloc represents roughly half the world’s population and around 40 per cent of global economic output. While politically diverse and often divided on many issues, the group found common ground in pushing back against Trump’s aggressive tariff strategy.<h2>Summit marked by geopolitical tensions</h2>The BRICS summit itself highlighted the group’s complex internal dynamics. Chinese President Xi Jinping skipped the gathering for the first time since coming to power in 2012, while Russian President Vladimir Putin addressed the meeting via videoconference to avoid travelling abroad under an international arrest warrant related to the Ukraine war. The leaders also expressed “grave concern” about the humanitarian crisis in Gaza, called for a ceasefire and reaffirmed their support for a two-state solution.&nbsp;Separately, the bloc offered symbolic backing to Iran, condemning recent Israeli and US strikes on Iranian nuclear and military targets. Iran’s foreign minister told the summit that the consequences of the conflict would not be limited to one country but would damage the entire region, according to AP.<h2>Trade tensions cloud outlook for commodities</h2>The BRICS tariff threat adds yet another layer of uncertainty for commodity markets already grappling with OPEC+ production decisions and broader economic risks. According to Bloomberg, metals prices, which had been resilient thanks to tight inventories and a weaker dollar, now face headwinds as traders assess the impact of a potential fracturing of global trade routes if Trump’s new policy is implemented.&nbsp;With Trump’s wider tariff deadline also approaching on 1 August, investors are bracing for a volatile period where trade headlines could overshadow supply-demand fundamentals, reshaping the outlook for everything from metals to energy.&nbsp;(With inputs from the agencies)&nbsp;

With BRICS condemning US tariff policies and global trade tensions escalating, metal markets, previously buoyed by tight inventories and a weak dollar now confront growing volatility and downside risk.

US President Donald Trump escalated his trade offensive on Sunday, vowing to slap an extra 10 per cent tariff on any country “aligning” with the BRICS bloc, a move that sent industrial metals prices lower on Monday and drew condemnation from the grouping of emerging nations. Trump’s threat on his Truth Social account underscored Washington’s increasingly confrontational trade stance as he warned there would be “no exceptions” for countries perceived to be backing what he labelled “anti-American” BRICS policies. According to Bloomberg, the new levy would be on top of existing tariffs, amplifying fears of a deepening global trade war just as negotiations with key partners enter a critical phase. Industrial metals extend losses on tariff anxiety Copper and other industrial metals fell as traders reacted to the latest policy uncertainty. Bloomberg reported copper slid 0.5 per cent to US$9,817 a tonne in Shanghai, marking its third consecutive decline after recently touching a three-month high above US$10,000. Aluminium also dropped 0.5 per cent on the London Metal Exchange as the entire industrial metals complex turned negative. While copper prices had been supported by falling global stockpiles and a weaker US dollar, Trump’s threat of punitive tariffs on BRICS countries introduced a new risk to demand prospects, prompting investors to scale back positions. A direct warning to BRICS nations Trump’s message specifically targeted the BRICS grouping, which includes Brazil, Russia, India, China and South Africa, accusing its members of promoting anti-American policies. “Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy,” Trump wrote on Truth Social.

Metal prices face renewed pressure as BRICS backlash against US tariffs heightens fears of trade disruption ahead of Trump’s 1 August deadline.

Metals tumble as Trump threatens 10% tariff on BRICS-aligned nations

Oil prices fell more than 1 per cent on Monday after OPEC+ announced a larger-than-expected production increase for August, fuelling fears of oversupply at a time when markets are already weighing the risks of slowing demand and economic uncertainty.&nbsp;According to Reuters, the group of oil producers, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia, agreed over the weekend to raise output by 548,000 barrels per day (bpd) next month. That figure exceeds previous monthly increases and caught many traders off guard.<h2>Brent and WTI both under pressure</h2>Brent crude futures slipped 80 cents, or 1.2 per cent, to US$67.50 a barrel in early trading, while US West Texas Intermediate (WTI) crude dropped by US$1.32, or 2 per cent, to US$65.68. Analysts said the announcement reflects OPEC+’s willingness to compete more aggressively for market share, even if that means accepting lower prices.&nbsp;“The increased production clearly represents a more aggressive competition for market share and some tolerance for the resulting decline in price and revenue,” said Tim Evans of Evans Energy in a note cited by Reuters.<h2>A significant jump from earlier targets</h2>The decision marks a notable acceleration in production growth. For comparison, OPEC+ had been adding around 411,000 bpd each month for May, June and July. The new target for August is a significant jump from those previous monthly increases and from the 138,000 bpd boost seen in April.OPEC+ justified the move by pointing to a steady global economic outlook and what it described as healthy market fundamentals, including relatively low oil inventories. According to Reuters, the group appears confident that demand can absorb the additional barrels despite lingering concerns over global economic conditions.<h2>Saudi Arabia signals demand confidence</h2>Saudi Arabia, the de facto leader of OPEC, underscored that confidence by raising the official selling price for its flagship Arab Light crude for August deliveries to Asia. Reuters reported this marks a four-month high for the grade, signalling Riyadh’s belief in robust demand from the region despite broader market jitters.&nbsp;Meanwhile, RBC Capital Markets analysts led by Helima Croft noted that nearly 80 per cent of the 2.2 million bpd of voluntary cuts pledged earlier by eight OPEC producers would effectively be reversed with the new decision. However, they also cautioned that in practice, much of the recent supply increases have come primarily from Saudi Arabia, while other members have struggled to ramp up production as planned.<h2>Looking ahead to September</h2>According to Reuters, Goldman Sachs analysts expect OPEC+ to confirm a final planned increase of about 550,000 bpd for September when the group next meets on 3 August. Markets will be watching closely to see whether the bloc sticks to its roadmap or adjusts strategy in response to price movements and demand signals.<h2>Wider backdrop of trade tensions</h2>Oil markets are also navigating the broader economic backdrop, including the prospect of renewed trade tensions as the US prepares to impose higher tariffs on many trading partners.&nbsp;As per Reuters, US President Donald Trump said on Sunday that several trade deals were close to being finalised and that letters would soon be sent to countries facing steeper tariff rates from 1 August, after a temporary pause ends on 9 July. The interplay between production policy, global demand forecasts and geopolitical trade tensions is expected to remain a key driver of oil prices in the weeks ahead.&nbsp;(With inputs from the agencies)&nbsp;

Brent and WTI crude fell sharply as OPEC+ announced a 548,000 bpd production boost for August, exceeding expectations and raising concerns over surplus and slowing demand in a volatile economic climate.

Oil prices fell more than 1 per cent on Monday after OPEC+ announced a larger-than-expected production increase for August, fuelling fears of oversupply at a time when markets are already weighing the risks of slowing demand and economic uncertainty. According to Reuters, the group of oil producers, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia, agreed over the weekend to raise output by 548,000 barrels per day (bpd) next month. That figure exceeds previous monthly increases and caught many traders off guard. Brent and WTI both under pressure Brent crude futures slipped 80 cents, or 1.2 per cent, to US$67.50 a barrel in early trading, while US West Texas Intermediate (WTI) crude dropped by US$1.32, or 2 per cent, to US$65.68. Analysts said the announcement reflects OPEC+’s willingness to compete more aggressively for market share, even if that means accepting lower prices. “The increased production clearly represents a more aggressive competition for market share and some tolerance for the resulting decline in price and revenue,” said Tim Evans of Evans Energy in a note cited by Reuters. A significant jump from earlier targets The decision marks a notable acceleration in production growth. For comparison, OPEC+ had been adding around 411,000 bpd each month for May, June and July. The new target for August is a significant jump from those previous monthly increases and from the 138,000 bpd boost seen in April. OPEC+ justified the move by pointing to a steady global economic outlook and what it described as healthy market fundamentals, including relatively low oil inventories. According to Reuters, the group appears confident that demand can absorb the additional barrels despite lingering concerns over global economic conditions. Saudi Arabia signals demand confidence Saudi Arabia, the de facto leader of OPEC, underscored that confidence by raising the official selling price for its flagship Arab Light crude for August deliveries to Asia. Reuters reported this marks a four-month high for the grade, signalling Riyadh’s belief in robust demand from the region despite broader market jitters. Meanwhile, RBC Capital Markets analysts led by Helima Croft noted that nearly 80 per cent of the 2.2 million bpd of voluntary cuts pledged earlier by eight OPEC producers would effectively be reversed with the new decision. However, they also cautioned that in practice, much of the recent supply increases have come primarily from Saudi Arabia, while other members have struggled to ramp up production as planned. Looking ahead to September According to Reuters, Goldman Sachs analysts expect OPEC+ to confirm a final planned increase of about 550,000 bpd for September when the group next meets on 3 August. Markets will be watching closely to see whether the bloc sticks to its roadmap or adjusts strategy in response to price movements and demand signals. Wider backdrop of trade tensions Oil markets are also navigating the broader economic backdrop, including the prospect of renewed trade tensions as the US prepares to impose higher tariffs on many trading partners. As per Reuters, US President Donald Trump said on Sunday that several trade deals were close to being finalised and that letters would soon be sent to countries facing steeper tariff rates from 1 August, after a temporary pause ends on 9 July. The interplay between production policy, global demand forecasts and geopolitical trade tensions is expected to remain a key driver of oil prices in the weeks ahead. (With inputs from the agencies)

Oil prices dropped over 1% after OPEC+ surprised markets with a bigger-than-expected output hike, stoking oversupply fears amid global demand uncertainty.

Oil prices slide as OPEC+ surprises with bigger August output hike

The US dollar hovered near multi-year lows on Monday, with traders growing increasingly cautious ahead of President Donald Trump’s looming tariff deadline. Markets are bracing for fresh trade tensions that could hit global growth and spark renewed volatility.&nbsp;As reported by Reuters, the dollar is trading near its weakest levels since 2021 against the euro and at lows not seen since 2015 versus the Swiss franc. Investors have been cutting dollar positions as the White House’s aggressive tariff plans inject new uncertainty into international trade.<h2>Trade threat weighs on the greenback</h2>Trump’s so-called “Liberation Day” tariff plan is scheduled to move forward on Wednesday, ending a 90-day moratorium that was designed to give trading partners time to negotiate new deals. According to Reuters, only a handful of countries like Britain, China, and Vietnam, have so far struck any form of agreement with Washington.&nbsp;Most other trade partners now face the risk of steep new levies beginning 1 August. As per Reuters, Trump said on Friday he would on Monday identify about a dozen countries that had received formal letters outlining their new tariff rates. That uncertainty has weighed on the dollar, with traders wary that higher tariffs could disrupt trade flows, undermine business confidence and dampen global demand.<h2>Analysts see volatility ahead</h2>Reuters quoted James Kniveton, senior corporate FX dealer at Convera, warning that “market volatility appears inevitable when the pause officially ends and new tariff levels are announced.”&nbsp;Kniveton suggested that the market’s reaction might be more measured than in past tariff rounds, given that this escalation has been widely telegraphed. Still, he cautioned that any surprise moves from the White House could trigger sharp currency swings. According to Reuters, some analysts also see the possibility of a last-minute extension of the deadline if negotiations show progress. But for now, markets are clearly pricing in risk.<h2>Dollar trading near key lows</h2>As per Reuters data, the dollar slipped 0.1 per cent to 0.7939 Swiss franc in early Asian trade on Monday, edging back toward its 1 July low of 0.7869, its weakest level since January 2015. Against the yen, the dollar also fell 0.1 per cent to 144.49.&nbsp;The euro eased slightly to $1.1780, not far from the 1 July peak of $1.1829, its highest since September 2021. Meanwhile, the dollar index, which measures the currency against six major peers including the euro, yen and franc, was flat at 96.967, still close to last week’s 3-1/2-year trough of 96.373.Reuters noted that the greenback’s weakness reflects a combination of factors, including shifting rate expectations and safe-haven flows, but this week the spotlight is squarely on trade policy.<h2>Countdown to tariff decision</h2>Reuters reported that US Treasury Secretary Scott Bessent said on Sunday that several major trade announcements could arrive in the coming days, underscoring the high-stakes negotiations still underway. Trump has repeatedly warned that countries failing to strike deals would see tariff rates revert to levels first announced in April.&nbsp;The White House’s strategy of threatening sharp tariff hikes while offering bespoke trade deals has forced even close allies to scramble for market access, while prompting companies to rethink supply chains and production plans. According to Reuters, traders expect continued uncertainty until there is clarity on whether the deadline will hold, be extended or trigger a new round of tariff escalation. With just days left before the pause ends, currency markets are poised for further swings as they track every development out of Washington.&nbsp;(With inputs from the agencies) &nbsp;

The dollar weakens against major currencies amid growing investor caution over Trump impending tariff hikes, with traders pricing in global trade disruption and market volatility.

The US dollar hovered near multi-year lows on Monday, with traders growing increasingly cautious ahead of President Donald Trump’s looming tariff deadline. Markets are bracing for fresh trade tensions that could hit global growth and spark renewed volatility. As reported by Reuters, the dollar is trading near its weakest levels since 2021 against the euro and at lows not seen since 2015 versus the Swiss franc. Investors have been cutting dollar positions as the White House’s aggressive tariff plans inject new uncertainty into international trade. Trade threat weighs on the greenback Trump’s so-called “Liberation Day” tariff plan is scheduled to move forward on Wednesday, ending a 90-day moratorium that was designed to give trading partners time to negotiate new deals. According to Reuters, only a handful of countries like Britain, China, and Vietnam, have so far struck any form of agreement with Washington. Most other trade partners now face the risk of steep new levies beginning 1 August. As per Reuters, Trump said on Friday he would on Monday identify about a dozen countries that had received formal letters outlining their new tariff rates. That uncertainty has weighed on the dollar, with traders wary that higher tariffs could disrupt trade flows, undermine business confidence and dampen global demand. Analysts see volatility ahead Reuters quoted James Kniveton, senior corporate FX dealer at Convera, warning that “market volatility appears inevitable when the pause officially ends and new tariff levels are announced.” Kniveton suggested that the market’s reaction might be more measured than in past tariff rounds, given that this escalation has been widely telegraphed. Still, he cautioned that any surprise moves from the White House could trigger sharp currency swings. According to Reuters, some analysts also see the possibility of a last-minute extension of the deadline if negotiations show progress. But for now, markets are clearly pricing in risk. Dollar trading near key lows As per Reuters data, the dollar slipped 0.1 per cent to 0.7939 Swiss franc in early Asian trade on Monday, edging back toward its 1 July low of 0.7869, its weakest level since January 2015. Against the yen, the dollar also fell 0.1 per cent to 144.49. The euro eased slightly to $1.1780, not far from the 1 July peak of $1.1829, its highest since September 2021. Meanwhile, the dollar index, which measures the currency against six major peers including the euro, yen and franc, was flat at 96.967, still close to last week’s 3-1/2-year trough of 96.373. Reuters noted that the greenback’s weakness reflects a combination of factors, including shifting rate expectations and safe-haven flows, but this week the spotlight is squarely on trade policy. Countdown to tariff decision Reuters reported that US Treasury Secretary Scott Bessent said on Sunday that several major trade announcements could arrive in the coming days, underscoring the high-stakes negotiations still underway. Trump has repeatedly warned that countries failing to strike deals would see tariff rates revert to levels first announced in April. The White House’s strategy of threatening sharp tariff hikes while offering bespoke trade deals has forced even close allies to scramble for market access, while prompting companies to rethink supply chains and production plans. According to Reuters, traders expect continued uncertainty until there is clarity on whether the deadline will hold, be extended or trigger a new round of tariff escalation. With just days left before the pause ends, currency markets are poised for further swings as they track every development out of Washington. (With inputs from the agencies)

The US dollar is trading near multi-year lows as markets brace for fresh trade tensions ahead of Trump’s looming tariff deadline.

Dollar sinks near multi-year lows as Trump’s tariff deadline looms

The United States has extended its deadline for higher tariffs to take effect, offering a narrow window for its trading partners to finalise new trade agreements and avoid steep duties. President Donald Trump announced on Sunday that the tariff increase would now begin on 1 August, giving countries until 9 July to complete negotiations.&nbsp;As per Reuters, Trump said several trade deals were “close” to being wrapped up in the coming days. The move is part of Washington’s strategy to pressure partners into making concessions while threatening significant economic consequences if talks stall.<h2>Tariffs as bargaining tool</h2>Trump’s tariff policy includes a 10 per cent base rate on most countries, with surcharges reaching as high as 50 per cent. While announced in April, those higher rates were postponed to allow time for negotiations. The new deadline, however, signals the White House’s impatience with what officials have described as slow progress.&nbsp;Commerce Secretary Howard Lutnick told reporters the 1 August start date for higher rates remains in place, but added that Trump is “setting the rates and the deals right now.” This flexible approach is designed to keep trading partners off balance and eager to sign before penalties kick in, as per Reuters.&nbsp;<h2>Letters warn over 100 countries</h2>US Treasury Secretary Scott Bessent said on CNN that the administration would soon send letters to over 100 countries, warning them they could face tariff rates originally set in April but suspended until now.&nbsp;According to Reuters, Bessent predicted a flurry of trade announcements soon, noting that talks with the European Union had made solid progress. The threat of returning to April’s tariff levels is meant to force countries to finalise deals quickly to avoid renewed trade tensions.<h2>Flexibility for willing partners</h2>White House National Economic Council head Kevin Hassett signalled that there could be “wiggle room” for countries negotiating in good faith. Speaking to CBS News, Hassett suggested Trump might offer extra time to partners prepared to make meaningful concessions.&nbsp;Stephen Miran, chairman of the White House Council of Economic Advisers, echoed this optimism in an interview with ABC News. He highlighted positive signals from discussions with Europe and India, saying countries demonstrating goodwill could secure more favourable tariff terms or even a delay in the deadline.<h2>Focus on key trade partners</h2>As per Reuters, the Trump administration is prioritising negotiations with 18 major trading partners accounting for 95 per cent of the US trade deficit. But smaller economies are also being pressed to strike deals quickly.&nbsp;Thailand, for example, is scrambling to avoid a 36 per cent tariff. The country’s finance minister told Bloomberg News it will offer greater market access for US agricultural and industrial goods, while promising increased purchases of US energy and Boeing jets.<h2>India deal seen nearing conclusion</h2>India is also racing to finalise an agreement. According to CNBC-TV18, India and the United States could announce a mini trade deal within the next two days. The average tariff on Indian goods shipped to the US is expected to settle at around 10 per cent if the deal is concluded, potentially sparing both economies deeper disruption.&nbsp;&nbsp;White House officials are pointing to framework deals with Britain and Vietnam as models for these negotiations. Hassett argued these arrangements show Trump’s tariff threats are pushing manufacturing and investment back to the United States.<h2>High-stakes strategy</h2>Miran praised the deal with Vietnam as highly favourable to the United States. He described it as “extremely one-sided,” allowing Washington to impose significant tariffs on Vietnamese exports while enjoying near-zero tariffs on American goods in return. Trump’s approach, combining aggressive deadlines with the promise of tailored deals, is classic high-stakes negotiation. By delaying the tariff hike while warning of its swift return, the White House message is clear: sign now or pay later.&nbsp;Whether this strategy will deliver durable agreements or provoke fresh trade tensions remains to be seen. For now, the world’s major economies have just weeks to avoid the next phase of Washington’s tariff escalation.&nbsp;(With inputs from the agencies)

President Trump extends the tariff deadline, intensifying pressure on over 100 nations, including India and the EU to finalise trade deals or face renewed economic penalties.

The United States has extended its deadline for higher tariffs to take effect, offering a narrow window for its trading partners to finalise new trade agreements and avoid steep duties. President Donald Trump announced on Sunday that the tariff increase would now begin on 1 August, giving countries until 9 July to complete negotiations. As per Reuters, Trump said several trade deals were “close” to being wrapped up in the coming days. The move is part of Washington’s strategy to pressure partners into making concessions while threatening significant economic consequences if talks stall. Tariffs as bargaining tool Trump’s tariff policy includes a 10 per cent base rate on most countries, with surcharges reaching as high as 50 per cent. While announced in April, those higher rates were postponed to allow time for negotiations. The new deadline, however, signals the White House’s impatience with what officials have described as slow progress. Commerce Secretary Howard Lutnick told reporters the 1 August start date for higher rates remains in place, but added that Trump is “setting the rates and the deals right now.” This flexible approach is designed to keep trading partners off balance and eager to sign before penalties kick in, as per Reuters. Letters warn over 100 countries US Treasury Secretary Scott Bessent said on CNN that the administration would soon send letters to over 100 countries, warning them they could face tariff rates originally set in April but suspended until now. According to Reuters, Bessent predicted a flurry of trade announcements soon, noting that talks with the European Union had made solid progress. The threat of returning to April’s tariff levels is meant to force countries to finalise deals quickly to avoid renewed trade tensions. Flexibility for willing partners White House National Economic Council head Kevin Hassett signalled that there could be “wiggle room” for countries negotiating in good faith. Speaking to CBS News, Hassett suggested Trump might offer extra time to partners prepared to make meaningful concessions. Stephen Miran, chairman of the White House Council of Economic Advisers, echoed this optimism in an interview with ABC News. He highlighted positive signals from discussions with Europe and India, saying countries demonstrating goodwill could secure more favourable tariff terms or even a delay in the deadline. Focus on key trade partners As per Reuters, the Trump administration is prioritising negotiations with 18 major trading partners accounting for 95 per cent of the US trade deficit. But smaller economies are also being pressed to strike deals quickly. Thailand, for example, is scrambling to avoid a 36 per cent tariff. The country’s finance minister told Bloomberg News it will offer greater market access for US agricultural and industrial goods, while promising increased purchases of US energy and Boeing jets. India deal seen nearing conclusion India is also racing to finalise an agreement. According to CNBC-TV18, India and the United States could announce a mini trade deal within the next two days. The average tariff on Indian goods shipped to the US is expected to settle at around 10 per cent if the deal is concluded, potentially sparing both economies deeper disruption. White House officials are pointing to framework deals with Britain and Vietnam as models for these negotiations. Hassett argued these arrangements show Trump’s tariff threats are pushing manufacturing and investment back to the United States. High-stakes strategy Miran praised the deal with Vietnam as highly favourable to the United States. He described it as “extremely one-sided,” allowing Washington to impose significant tariffs on Vietnamese exports while enjoying near-zero tariffs on American goods in return. Trump’s approach, combining aggressive deadlines with the promise of tailored deals, is classic high-stakes negotiation. By delaying the tariff hike while warning of its swift return, the White House message is clear: sign now or pay later. Whether this strategy will deliver durable agreements or provoke fresh trade tensions remains to be seen. For now, the world’s major economies have just weeks to avoid the next phase of Washington’s tariff escalation. (With inputs from the agencies)

The US has delayed its tariff hike to August 1, using the threat of steep duties to pressure global partners into swift trade concessions.

Trump delays tariff hike to August 1, urges quick trade deals

India and the United States are on the verge of finalising a mini trade deal, with a decision expected in the next 24 to 48 hours, according to a CNBC-TV18 report quoting government sources. The deal, if confirmed, would be a breakthrough ahead of a broader Bilateral Trade Agreement (BTA), discussions for which are set to begin after July 9.Also read: <a href="https://www.wionews.com/world/elon-musk-s-new-america-party-gets-support-from-mark-cuban-anthony-scaramucci-here-s-who-wants-in-1751803571320">'Billionaire, Ex-Trump ally': Elon Musk’s new ‘America Party’ gets support from surprising allies: Here’s who wants in</a><h2>What’s in the mini trade deal?</h2>As per the report, both countries have completed negotiations on the smaller deal, which is expected to carry an average tariff of around 10%. While the exact details have not been made public, officials believe it could serve as a foundation for a larger trade deal.This comes as US President Donald Trump prepares to impose a wave of higher tariffs starting July 9. Earlier this year, Trump announced a 10% baseline tariff on goods from nearly all trading partners, but held off implementing sharper increases to allow for talks.These hikes are now due to kick in, ranging between 10% and 70% depending on the country, unless bilateral deals are struck in time.<h2>Trump’s “take it or leave it” approach</h2>US Treasury Secretary Scott Bessent confirmed that Washington is close to finalising several trade deals ahead of the deadline. “We expect some big announcements in the coming days,” he told CNN’s State of the Union programme.Trump, meanwhile, told reporters on Air Force One that he had signed letters for 12 countries detailing new tariff rates on goods being sent to the US. “I signed some letters and they will go out on Monday, probably 12. Different amounts of money, different amounts of tariffs,” Trump said, without naming the countries.He added, “You know, with the UK, we did that. And it was great for both parties. With China, we did that, and I think it’s very good for both parties.” The letters, described as “take it or leave it” offers, are expected to go out just before the tariff hikes kick in.In addition to the 12 countries receiving Trump’s tariff letters, the US is also preparing to notify 100 smaller nations, many with limited trade volume, that they too could face steep import duties unless new deals are struck quickly.

As per the report, both countries have completed negotiations on the smaller deal, which is expected to carry an average tariff of around 10%. While the exact details have not been made public, officials believe it could serve as a foundation for a larger trade deal.

India and the United States are on the verge of finalising a mini trade deal, with a decision expected in the next 24 to 48 hours, according to a CNBC-TV18 report quoting government sources. The deal, if confirmed, would be a breakthrough ahead of a broader Bilateral Trade Agreement (BTA), discussions for which are set to begin after July 9. Also read: 'Billionaire, Ex-Trump ally': Elon Musk’s new ‘America Party’ gets support from surprising allies: Here’s who wants in What’s in the mini trade deal? As per the report, both countries have completed negotiations on the smaller deal, which is expected to carry an average tariff of around 10%. While the exact details have not been made public, officials believe it could serve as a foundation for a larger trade deal. This comes as US President Donald Trump prepares to impose a wave of higher tariffs starting July 9. Earlier this year, Trump announced a 10% baseline tariff on goods from nearly all trading partners, but held off implementing sharper increases to allow for talks. These hikes are now due to kick in, ranging between 10% and 70% depending on the country, unless bilateral deals are struck in time. Trump’s “take it or leave it” approach US Treasury Secretary Scott Bessent confirmed that Washington is close to finalising several trade deals ahead of the deadline. “We expect some big announcements in the coming days,” he told CNN’s State of the Union programme. Trump, meanwhile, told reporters on Air Force One that he had signed letters for 12 countries detailing new tariff rates on goods being sent to the US. “I signed some letters and they will go out on Monday, probably 12. Different amounts of money, different amounts of tariffs,” Trump said, without naming the countries. He added, “You know, with the UK, we did that. And it was great for both parties. With China, we did that, and I think it’s very good for both parties.” The letters, described as “take it or leave it” offers, are expected to go out just before the tariff hikes kick in. In addition to the 12 countries receiving Trump’s tariff letters, the US is also preparing to notify 100 smaller nations, many with limited trade volume, that they too could face steep import duties unless new deals are struck quickly.

As per the report, both countries have completed negotiations on the smaller deal, which is expected to carry an average tariff of around 10%. While the exact details have not been made public, officials believe it could serve as a foundation for a larger trade deal.

India-US to finalise 'mini trade deal' in next 24 hours: Can it help New Delhi avoid Trump’s ‘take it or leave it’ tariff letters?

South Korea is making a last-ditch effort to avert sweeping new US tariffs, as officials from Seoul and Washington race to extend a looming deadline for finalising trade deals. According to a statement from South Korea’s industry ministry, Trade Minister Yeo Han-koo met US Trade Representative Jamieson Greer in Washington on Saturday, urging an extension of the 9 July deadline while proposing new manufacturing partnerships aimed at avoiding tariffs on key exports such as automobiles and steel, as per Bloomberg.&nbsp;&nbsp;The meeting underscores growing anxiety in Seoul over President Donald Trump’s threat to impose 25 per cent across-the-board tariffs as early as next month, a move that could hit South Korea’s vital manufacturing sector hard. Trump has warned that the United States would issue letters to trading partners confirming new unilateral tariff rates that would take effect on 1 August.<h2>South Korea pitches manufacturing partnerships</h2>South Korea’s industry ministry said Yeo outlined a “mutually beneficial” framework for industrial cooperation, intended to strengthen bilateral supply chains while calling for the elimination or reduction of tariffs on major export products. As per the ministry’s statement, both sides agreed they had conducted “good faith” negotiations for a month following South Korea’s recent change in government, but acknowledged that more work was needed to bridge remaining differences, as per Bloomberg.&nbsp;&nbsp;Yeo’s appeal marks an urgent diplomatic push by Seoul to protect its economy, which is already grappling with weak domestic consumption. South Korea’s central bank cut its GDP growth forecast for 2025 to 0.8 per cent in May, down from 1.5 per cent previously.<h2>Seoul ramps up diplomatic outreach</h2>The talks in Washington represented Yeo’s second trip to the United States in just over a week, a sign of Seoul’s determination to revive stalled negotiations following a period of political turmoil at home.&nbsp;President Lee Jae Myung took office last month after winning a snap election triggered by the ousting of Yoon Suk Yeol. Yoon’s imposition of martial law late last year led to the country’s worst political crisis in decades and created a leadership vacuum that delayed key policy negotiations, including trade. South Korean officials appear to be working quickly to re-establish momentum. Lee’s national security adviser, Wi Sung-lac, also departed for Washington on Sunday for meetings with US Secretary of State Marco Rubio, who is also serving as acting national security adviser.<h2>High stakes for South Korea’s economy</h2>Speaking with reporters before leaving Seoul, Wi described the negotiations as being in a “critical phase” and said he would seek to arrange an initial summit between President Lee and President Trump while also discussing broader security and bilateral issues, as per Bloomberg.&nbsp;&nbsp;South Korea is a major US ally and a global manufacturing powerhouse, exporting cars, semiconductors and batteries. The threat of 25 per cent tariffs on its goods has alarmed industry leaders, who warn such levies would further undermine an already sluggish economy. By pushing for an extension to the deadline, Seoul hopes to buy time to secure a deal that would limit or eliminate the threatened tariffs and provide stability for its exporters.&nbsp;(With inputs from the agencies) &nbsp;

With President Trump threatening 25% tariffs effective 1 August, South Korea economy is at risk. Trade Minister Yeo Han koo emphasized a framework for industrial cooperation, while the recent political shift adds urgency to re-establish negotiations and secure a favorable outcome.

South Korea is making a last-ditch effort to avert sweeping new US tariffs, as officials from Seoul and Washington race to extend a looming deadline for finalising trade deals. According to a statement from South Korea’s industry ministry, Trade Minister Yeo Han-koo met US Trade Representative Jamieson Greer in Washington on Saturday, urging an extension of the 9 July deadline while proposing new manufacturing partnerships aimed at avoiding tariffs on key exports such as automobiles and steel, as per Bloomberg. The meeting underscores growing anxiety in Seoul over President Donald Trump’s threat to impose 25 per cent across-the-board tariffs as early as next month, a move that could hit South Korea’s vital manufacturing sector hard. Trump has warned that the United States would issue letters to trading partners confirming new unilateral tariff rates that would take effect on 1 August. South Korea pitches manufacturing partnerships South Korea’s industry ministry said Yeo outlined a “mutually beneficial” framework for industrial cooperation, intended to strengthen bilateral supply chains while calling for the elimination or reduction of tariffs on major export products. As per the ministry’s statement, both sides agreed they had conducted “good faith” negotiations for a month following South Korea’s recent change in government, but acknowledged that more work was needed to bridge remaining differences, as per Bloomberg. Yeo’s appeal marks an urgent diplomatic push by Seoul to protect its economy, which is already grappling with weak domestic consumption. South Korea’s central bank cut its GDP growth forecast for 2025 to 0.8 per cent in May, down from 1.5 per cent previously. Seoul ramps up diplomatic outreach The talks in Washington represented Yeo’s second trip to the United States in just over a week, a sign of Seoul’s determination to revive stalled negotiations following a period of political turmoil at home. President Lee Jae Myung took office last month after winning a snap election triggered by the ousting of Yoon Suk Yeol. Yoon’s imposition of martial law late last year led to the country’s worst political crisis in decades and created a leadership vacuum that delayed key policy negotiations, including trade. South Korean officials appear to be working quickly to re-establish momentum. Lee’s national security adviser, Wi Sung-lac, also departed for Washington on Sunday for meetings with US Secretary of State Marco Rubio, who is also serving as acting national security adviser. High stakes for South Korea’s economy Speaking with reporters before leaving Seoul, Wi described the negotiations as being in a “critical phase” and said he would seek to arrange an initial summit between President Lee and President Trump while also discussing broader security and bilateral issues, as per Bloomberg. South Korea is a major US ally and a global manufacturing powerhouse, exporting cars, semiconductors and batteries. The threat of 25 per cent tariffs on its goods has alarmed industry leaders, who warn such levies would further undermine an already sluggish economy. By pushing for an extension to the deadline, Seoul hopes to buy time to secure a deal that would limit or eliminate the threatened tariffs and provide stability for its exporters. (With inputs from the agencies)

South Korea is urgently attempting to prevent new US tariffs by seeking to extend the 9 July deadline for trade deal finalizations.

South Korea urges US trade deadline extension as tariff threat looms

Canada is preparing for potential financial intervention in its aluminium industry, as the fallout from President Donald Trump’s steep US tariffs risks deepening into a full-blown trade standoff. As per Reuters, early-stage discussions are underway within Ottawa to support large aluminium producers, including Rio Tinto, should Washington’s 50 per cent tariff on aluminium imports remain in place beyond the near term.&nbsp;Jean Simard, CEO of the Aluminium Association of Canada, confirmed the deliberations in an interview on Saturday, stating that “everything is on the table” if no deal is reached with the US by July 21. “With the 50% tariff in effect since June 4, it’s normal that there are discussions about the impact on business liquidity if the situation persists,” Simard told Reuters.<h2>Tariffs double under Trump as trade tensions rise</h2>The US president’s decision last month to double steel and aluminium tariffs from 25 to 50 per cent marks a dramatic escalation in his broader trade agenda. Washington claims the measures are aimed at boosting domestic production of strategic industrial materials — but they’ve triggered strong backlash from allies like Canada.&nbsp;Over half of all aluminium consumed in the United States is imported, and Canada is its largest supplier, exporting over 3.2 million tonnes of the metal to its southern neighbour in 2024, according to industry data. Major Canadian aluminium firms, including Rio Tinto, do not currently face liquidity concerns. However, sustained tariffs at 50 per cent would severely squeeze their cash flows and long-term competitiveness, said Simard.<h2>Ottawa in talks with Rio Tinto</h2>According to Reuters, Canadian federal industry minister Mélanie Joly has privately confirmed discussions with Rio Tinto regarding financial assistance. The company has so far declined to comment on the negotiations. Joly’s office issued a statement Saturday saying the government is in “active conversations” on how best to support the aluminium sector in light of “unjustified American tariffs”, with the broader goal of safeguarding jobs and encouraging future investment, as quoted by Reuters.&nbsp;&nbsp;Canada recently dropped plans to impose a digital services tax on American tech firms, a goodwill move to keep trade negotiations with Washington alive. However, aluminium has emerged as a major sticking point.<h2>No deal yet, but time is running out</h2>The Canadian government hopes to reach a tariff resolution with the US before the July 21 deadline, but officials acknowledge that uncertainty remains high. If no breakthrough is achieved, Canadian officials warn that retaliatory or compensatory measures may need to be considered. Simard noted that financial support would only be one part of a broader industrial response to offset the tariffs’ effects.&nbsp;The rising friction comes amid a broader reshuffling of global trade dynamics, with Washington now simultaneously clashing with both China and its traditional allies over market access and industrial policy. For now, Canada’s aluminium giants and the tens of thousands of workers in the sector, await clarity as talks continue behind closed doors.&nbsp;(With inputs from the agencies)&nbsp;

Federal Minister Mélanie Joly has confirmed talks with Rio Tinto on assistance, aiming to protect jobs and investments amidst rising US-Canada trade tensions over aluminium.

Canada is preparing for potential financial intervention in its aluminium industry, as the fallout from President Donald Trump’s steep US tariffs risks deepening into a full-blown trade standoff. As per Reuters, early-stage discussions are underway within Ottawa to support large aluminium producers, including Rio Tinto, should Washington’s 50 per cent tariff on aluminium imports remain in place beyond the near term. Jean Simard, CEO of the Aluminium Association of Canada, confirmed the deliberations in an interview on Saturday, stating that “everything is on the table” if no deal is reached with the US by July 21. “With the 50% tariff in effect since June 4, it’s normal that there are discussions about the impact on business liquidity if the situation persists,” Simard told Reuters. Tariffs double under Trump as trade tensions rise The US president’s decision last month to double steel and aluminium tariffs from 25 to 50 per cent marks a dramatic escalation in his broader trade agenda. Washington claims the measures are aimed at boosting domestic production of strategic industrial materials — but they’ve triggered strong backlash from allies like Canada. Over half of all aluminium consumed in the United States is imported, and Canada is its largest supplier, exporting over 3.2 million tonnes of the metal to its southern neighbour in 2024, according to industry data. Major Canadian aluminium firms, including Rio Tinto, do not currently face liquidity concerns. However, sustained tariffs at 50 per cent would severely squeeze their cash flows and long-term competitiveness, said Simard. Ottawa in talks with Rio Tinto According to Reuters, Canadian federal industry minister Mélanie Joly has privately confirmed discussions with Rio Tinto regarding financial assistance. The company has so far declined to comment on the negotiations. Joly’s office issued a statement Saturday saying the government is in “active conversations” on how best to support the aluminium sector in light of “unjustified American tariffs”, with the broader goal of safeguarding jobs and encouraging future investment, as quoted by Reuters. Canada recently dropped plans to impose a digital services tax on American tech firms, a goodwill move to keep trade negotiations with Washington alive. However, aluminium has emerged as a major sticking point. No deal yet, but time is running out The Canadian government hopes to reach a tariff resolution with the US before the July 21 deadline, but officials acknowledge that uncertainty remains high. If no breakthrough is achieved, Canadian officials warn that retaliatory or compensatory measures may need to be considered. Simard noted that financial support would only be one part of a broader industrial response to offset the tariffs’ effects. The rising friction comes amid a broader reshuffling of global trade dynamics, with Washington now simultaneously clashing with both China and its traditional allies over market access and industrial policy. For now, Canada’s aluminium giants and the tens of thousands of workers in the sector, await clarity as talks continue behind closed doors. (With inputs from the agencies)

Canada is contemplating financial intervention in its aluminium sector due to President Trump's 50% tariffs, which could lead to a trade standoff.

Canada may offer financial aid to aluminium producers if 50% US tariffs remain

The world economy is on edge this week as the United States closes in on a self-imposed deadline for fresh tariffs, ending 90 days of frantic negotiations that have kept businesses and governments guessing. According to Bloomberg, Wednesday marks the end of a temporary pause on President Donald Trump’s so-called “reciprocal” levies, an approach that threatens to bring a new wave of protectionism aimed at cutting US trade deficits and reviving domestic industry.&nbsp;Trump has suggested the first of these tariffs could hit as early as August 1, telling supporters “the money will start to come into the United States” on that date. His administration says the strategy will restore fairness to trade, but critics warn it risks undermining decades of progress in lowering global barriers under World Trade Organization rules. Negotiators have been scrambling for last-minute deals before the cutoff. Treasury Secretary Scott Bessent describes trade as one of the three main pillars of Trump’s agenda, along with tax cuts and deregulation. Bloomberg reports that all three are designed to boost investment and job growth, though they’ve also drawn fire for fuelling debt and sowing uncertainty.<h2>Tariffs as economic weapon and gamble</h2>Trump’s embrace of unilateral tariffs marks a stark shift from previous US trade policy, which favoured alliances and rules-based dispute resolution. The president argues that other nations have long taken advantage of American openness and says tariffs will level the playing field. Bloomberg notes that the administration also sees tariffs as a handy source of revenue at a time when debt sustainability is a growing concern. After Congress approved a massive $3.4 trillion tax cut and spending package, Washington is eager for new ways to fill its coffers.&nbsp;Yet economists warn that Trump often misrepresents how tariffs work. According to Bloomberg, while he claims foreign exporters pay these duties, in reality the costs usually land on American importers. That forces companies to choose between absorbing the extra expense, pressuring overseas suppliers to cut prices, or passing costs on to US consumers. Bloomberg Economics estimates that if Trump’s threatened tariff hikes take effect this month, average US import duties could soar to about 20 per cent—far above the roughly 3 per cent level when he first took office.<h2>US economy steady but cautious</h2>So far, the US economy has weathered the uncertainty reasonably well. Bloomberg reports that hiring has remained solid and inflation relatively contained, helping the Federal Reserve resist political pressure for aggressive rate cuts.&nbsp;&nbsp;June’s jobs data showed surprisingly strong growth, driven in part by a surge in public education employment that pushed the jobless rate down. But the Fed remains cautious. Investors will pore over the minutes of the central bank’s June policy meeting this week for hints about whether policymakers see tariffs as a threat to growth or inflation down the line. Weekly jobless claims data due Thursday is expected to show a labour market still tight overall, even as elevated continuing claims hint at challenges for those trying to find new work.<h2>Canada’s job market feels tariff stress</h2>Canada, too, is bracing for fallout. Bloomberg notes that June labour market data is likely to show further weakening after unemployment ticked up to 7 per cent in May. Business sentiment in manufacturing and other trade-exposed sectors has cooled as tariff threats cloud hiring plans.&nbsp;Cross-border tourism is also under pressure, with June figures expected to reveal another drop in return visits.<h2>Asia’s central banks balance growth and risk</h2>Across Asia, policymakers are weighing how to support slowing growth while managing inflation risks, especially as Trump’s tariffs threaten to weaken global demand.&nbsp;Bloomberg says Australia’s central bank is widely expected to cut its cash rate to 3.6 per cent on Tuesday, marking a third straight reduction as inflation cools. That move will follow key business confidence and hiring surveys, with Deputy Governor Andrew Hauser scheduled to speak Wednesday.New Zealand’s central bank is expected to hold its rate steady at 3.25 per cent, while Malaysia’s Bank Negara is also likely to keep its overnight rate unchanged this week. South Korea’s central bank is forecast to maintain its base rate at 2.5 per cent on Thursday, balancing growth support with efforts to contain surging housing prices in Seoul.&nbsp;China will release fresh inflation data on Wednesday that will give clues about domestic demand, while indicators on loans and money supply will also be closely watched. Japan, meanwhile, will report labour cash earnings on Monday, a key gauge of whether rising wages are feeding through to broader consumption. Other Japanese releases this week include bank lending, current account data and the Eco Watchers Survey of business sentiment.&nbsp;Elsewhere in Asia, Bloomberg highlights upcoming data from the Philippines (May employment report), Taiwan (June CPI and trade numbers) and Indonesia (foreign reserves and consumer confidence).India is also keeping a close watch on these developments. While the Reserve Bank of India has adopted a cautious approach to policy in 2025, it remains focused on maintaining a balance between controlling inflation and supporting growth. Officials are monitoring monsoon-driven food price trends, global commodity costs and rupee movements—all of which could be further complicated by any escalation in US trade tensions.<h2>Europe braces for tariff effects</h2>European economies remain exposed to the fallout from US protectionism. Bloomberg reports that Germany saw a sharper-than-expected drop in factory orders in May, a sign that businesses are already feeling the chill.&nbsp;This week will bring Germany’s industrial production data on Monday and trade figures on Tuesday, with France’s exports due the same day. Italy will publish industrial output on Wednesday.In the UK, GDP data for May is due Friday, with economists hoping for a modest rebound after April’s sharp contraction. The Bank of England will release its financial stability report on Wednesday, with&nbsp;&nbsp;Governor Andrew Bailey set to discuss risks to the economy at a press conference.Eurozone finance ministers will also meet early in the week, discussing topics including Bulgaria’s planned switch to the euro in January. Meanwhile, Sweden will release inflation data Monday, followed by housing prices on Tuesday and monthly GDP on Wednesday. Norway and Denmark will also publish consumer price numbers.&nbsp;Russia, which cut rates last month for the first time in nearly three years, will release June inflation data Wednesday that could influence whether the central bank opts for a larger cut at its next meeting. Deputy Governor Alexey Zabotkin has said the data will be key to that decision.<h2>Latin America focuses on inflation battle</h2>Bloomberg notes that inflation is the top economic story in Latin America this week. Colombia will kick things off Monday with data expected to show annual inflation dipping below 5 per cent, its lowest level since late 2021.&nbsp;Chile will release June numbers Tuesday, with analysts looking for either stability or a slight uptick from May’s 4.4 per cent reading. Mexico is due to publish its inflation data Wednesday, followed by central bank minutes on Thursday that could offer clues on future rate cuts after four consecutive half-point reductions.&nbsp;Brazil, the region’s largest economy, will release its data Thursday, with Bloomberg Economics predicting it may breach the country’s new continuous inflation target. Peru’s central bank is also meeting Wednesday and is widely expected to deliver a modest rate cut after holding steady at its last session.As Trump’s tariff deadline arrives, governments around the world, from Berlin to Beijing, Delhi to Brasília, are weighing the risks of caving to US demands against the potential shock of a new era of protectionism that could reshape global commerce for years to come. (With inputs from the agencies)&nbsp;

From Asia to Latin America, governments and central banks are on alert as the US approaches a key tariff deadline, sparking fears of higher trade barriers, inflation pressures, and global slowdown.

The world economy is on edge this week as the United States closes in on a self-imposed deadline for fresh tariffs, ending 90 days of frantic negotiations that have kept businesses and governments guessing. According to Bloomberg, Wednesday marks the end of a temporary pause on President Donald Trump’s so-called “reciprocal” levies, an approach that threatens to bring a new wave of protectionism aimed at cutting US trade deficits and reviving domestic industry. Trump has suggested the first of these tariffs could hit as early as August 1, telling supporters “the money will start to come into the United States” on that date. His administration says the strategy will restore fairness to trade, but critics warn it risks undermining decades of progress in lowering global barriers under World Trade Organization rules. Negotiators have been scrambling for last-minute deals before the cutoff. Treasury Secretary Scott Bessent describes trade as one of the three main pillars of Trump’s agenda, along with tax cuts and deregulation. Bloomberg reports that all three are designed to boost investment and job growth, though they’ve also drawn fire for fuelling debt and sowing uncertainty. Tariffs as economic weapon and gamble Trump’s embrace of unilateral tariffs marks a stark shift from previous US trade policy, which favoured alliances and rules-based dispute resolution. The president argues that other nations have long taken advantage of American openness and says tariffs will level the playing field. Bloomberg notes that the administration also sees tariffs as a handy source of revenue at a time when debt sustainability is a growing concern. After Congress approved a massive $3.4 trillion tax cut and spending package, Washington is eager for new ways to fill its coffers. Yet economists warn that Trump often misrepresents how tariffs work. According to Bloomberg, while he claims foreign exporters pay these duties, in reality the costs usually land on American importers. That forces companies to choose between absorbing the extra expense, pressuring overseas suppliers to cut prices, or passing costs on to US consumers. Bloomberg Economics estimates that if Trump’s threatened tariff hikes take effect this month, average US import duties could soar to about 20 per cent—far above the roughly 3 per cent level when he first took office. US economy steady but cautious So far, the US economy has weathered the uncertainty reasonably well. Bloomberg reports that hiring has remained solid and inflation relatively contained, helping the Federal Reserve resist political pressure for aggressive rate cuts. June’s jobs data showed surprisingly strong growth, driven in part by a surge in public education employment that pushed the jobless rate down. But the Fed remains cautious. Investors will pore over the minutes of the central bank’s June policy meeting this week for hints about whether policymakers see tariffs as a threat to growth or inflation down the line. Weekly jobless claims data due Thursday is expected to show a labour market still tight overall, even as elevated continuing claims hint at challenges for those trying to find new work. Canada’s job market feels tariff stress Canada, too, is bracing for fallout. Bloomberg notes that June labour market data is likely to show further weakening after unemployment ticked up to 7 per cent in May. Business sentiment in manufacturing and other trade-exposed sectors has cooled as tariff threats cloud hiring plans. Cross-border tourism is also under pressure, with June figures expected to reveal another drop in return visits. Asia’s central banks balance growth and risk Across Asia, policymakers are weighing how to support slowing growth while managing inflation risks, especially as Trump’s tariffs threaten to weaken global demand. Bloomberg says Australia’s central bank is widely expected to cut its cash rate to 3.6 per cent on Tuesday, marking a third straight reduction as inflation cools. That move will follow key business confidence and hiring surveys, with Deputy Governor Andrew Hauser scheduled to speak Wednesday. New Zealand’s central bank is expected to hold its rate steady at 3.25 per cent, while Malaysia’s Bank Negara is also likely to keep its overnight rate unchanged this week. South Korea’s central bank is forecast to maintain its base rate at 2.5 per cent on Thursday, balancing growth support with efforts to contain surging housing prices in Seoul. China will release fresh inflation data on Wednesday that will give clues about domestic demand, while indicators on loans and money supply will also be closely watched. Japan, meanwhile, will report labour cash earnings on Monday, a key gauge of whether rising wages are feeding through to broader consumption. Other Japanese releases this week include bank lending, current account data and the Eco Watchers Survey of business sentiment. Elsewhere in Asia, Bloomberg highlights upcoming data from the Philippines (May employment report), Taiwan (June CPI and trade numbers) and Indonesia (foreign reserves and consumer confidence). India is also keeping a close watch on these developments. While the Reserve Bank of India has adopted a cautious approach to policy in 2025, it remains focused on maintaining a balance between controlling inflation and supporting growth. Officials are monitoring monsoon-driven food price trends, global commodity costs and rupee movements—all of which could be further complicated by any escalation in US trade tensions. Europe braces for tariff effects European economies remain exposed to the fallout from US protectionism. Bloomberg reports that Germany saw a sharper-than-expected drop in factory orders in May, a sign that businesses are already feeling the chill. This week will bring Germany’s industrial production data on Monday and trade figures on Tuesday, with France’s exports due the same day. Italy will publish industrial output on Wednesday. In the UK, GDP data for May is due Friday, with economists hoping for a modest rebound after April’s sharp contraction. The Bank of England will release its financial stability report on Wednesday, with Governor Andrew Bailey set to discuss risks to the economy at a press conference. Eurozone finance ministers will also meet early in the week, discussing topics including Bulgaria’s planned switch to the euro in January. Meanwhile, Sweden will release inflation data Monday, followed by housing prices on Tuesday and monthly GDP on Wednesday. Norway and Denmark will also publish consumer price numbers. Russia, which cut rates last month for the first time in nearly three years, will release June inflation data Wednesday that could influence whether the central bank opts for a larger cut at its next meeting. Deputy Governor Alexey Zabotkin has said the data will be key to that decision. Latin America focuses on inflation battle Bloomberg notes that inflation is the top economic story in Latin America this week. Colombia will kick things off Monday with data expected to show annual inflation dipping below 5 per cent, its lowest level since late 2021. Chile will release June numbers Tuesday, with analysts looking for either stability or a slight uptick from May’s 4.4 per cent reading. Mexico is due to publish its inflation data Wednesday, followed by central bank minutes on Thursday that could offer clues on future rate cuts after four consecutive half-point reductions. Brazil, the region’s largest economy, will release its data Thursday, with Bloomberg Economics predicting it may breach the country’s new continuous inflation target. Peru’s central bank is also meeting Wednesday and is widely expected to deliver a modest rate cut after holding steady at its last session. As Trump’s tariff deadline arrives, governments around the world, from Berlin to Beijing, Delhi to Brasília, are weighing the risks of caving to US demands against the potential shock of a new era of protectionism that could reshape global commerce for years to come. (With inputs from the agencies)

Global markets brace for disruption as Trump’s August 1 tariff plan nears, threatening a surge in protectionism and economic ripple effects worldwide.

Trump’s tariff ultimatum looms as 90-day reprieve ends, rattling global trade

Japan is scrambling to head off steep new US tariffs, as last-ditch negotiations with President Donald Trump’s administration show few signs of progress. With a crucial tariff pause set to expire on July 9, Tokyo is warning of significant risks to its vital manufacturing sector if a deal cannot be reached.&nbsp;According to Reuters, Japan’s chief tariff negotiator Ryosei Akazawa held “in-depth exchanges” over the phone with US Commerce Secretary Howard Lutnick on Thursday and Saturday. The Japanese government said in a statement that it would “continue actively coordinating with the US side” in an effort to prevent the higher tariffs from taking effect.&nbsp;Prime Minister Shigeru Ishiba, speaking on Wednesday, vowed to defend Japan’s national interests, noting that Japan is the largest foreign investor in the United States. As per Reuters, Ishiba’s comments reflect Tokyo’s growing frustration with what it sees as aggressive US demands and limited willingness to compromise.<h2>Trump threatens even higher tariffs</h2>President Trump has repeatedly threatened to increase tariffs far beyond the current 24 per cent level announced in April. This week, Trump criticised Japan for what he described as its reluctance to buy US-grown rice, accusing Tokyo of maintaining unfair barriers. Yet Reuters reports that Japan has in fact imported historically high volumes of US rice in recent months, as domestic prices have surged.&nbsp;Despite those purchases, Trump has indicated he may bypass further negotiations altogether. According to Reuters, he suggested he could simply send Japan a letter outlining a new tariff rate of 30 or even 35 per cent. The White House declined to comment directly on the possibility of higher duties, referring only to Trump’s public statements. Reuters also noted that Trump said on Friday he had signed letters to 12 countries informing them of new tariff intentions, though he did not identify which nations would receive them.<h2>Japan’s auto industry on the line</h2>Japan’s top priority in these negotiations remains securing an exemption for its automotive sector. As per Reuters, Japanese automakers are already facing a 10 per cent tariff on most exports to the US. On top of that, Washington has threatened an industry-specific tariff of 25 per cent on imported vehicles, a move that would hit Japan’s manufacturers particularly hard.&nbsp;After nearly three months of negotiations without a breakthrough, Tokyo’s options are narrowing. Japan is one of America’s most important trading partners, and its carmakers are major employers in the US. Yet Reuters reports that Trump has so far shown little inclination to compromise, casting doubt on whether Japan can avoid higher tariffs. Prime Minister Ishiba said his government remained determined to find a solution, but acknowledged the difficulties, stressing the need to protect key national interests even as talks drag on.<h2>An uncertain outlook</h2>With the July 9 deadline fast approaching, the risk of escalation is real. As Reuters reports, Trump has questioned whether a deal is even possible and has publicly floated higher tariff rates. For Japan, failure to secure an agreement could have damaging economic consequences, especially for its automakers and exporters.&nbsp;Beyond the economic impact, the standoff also threatens to strain the broader US-Japan alliance. As the two sides edge closer to a potential trade war, Japan’s negotiators are under intense pressure to avert a damaging outcome while managing an increasingly unpredictable White House.&nbsp;(With inputs from the agencies)

With a crucial July 9 deadline nearing, Japan scrambles to secure a tariff exemption from the Trump administration amid rising tensions, aggressive US demands, and fears of economic fallout.

Japan is scrambling to head off steep new US tariffs, as last-ditch negotiations with President Donald Trump’s administration show few signs of progress. With a crucial tariff pause set to expire on July 9, Tokyo is warning of significant risks to its vital manufacturing sector if a deal cannot be reached. According to Reuters, Japan’s chief tariff negotiator Ryosei Akazawa held “in-depth exchanges” over the phone with US Commerce Secretary Howard Lutnick on Thursday and Saturday. The Japanese government said in a statement that it would “continue actively coordinating with the US side” in an effort to prevent the higher tariffs from taking effect. Prime Minister Shigeru Ishiba, speaking on Wednesday, vowed to defend Japan’s national interests, noting that Japan is the largest foreign investor in the United States. As per Reuters, Ishiba’s comments reflect Tokyo’s growing frustration with what it sees as aggressive US demands and limited willingness to compromise. Trump threatens even higher tariffs President Trump has repeatedly threatened to increase tariffs far beyond the current 24 per cent level announced in April. This week, Trump criticised Japan for what he described as its reluctance to buy US-grown rice, accusing Tokyo of maintaining unfair barriers. Yet Reuters reports that Japan has in fact imported historically high volumes of US rice in recent months, as domestic prices have surged. Despite those purchases, Trump has indicated he may bypass further negotiations altogether. According to Reuters, he suggested he could simply send Japan a letter outlining a new tariff rate of 30 or even 35 per cent. The White House declined to comment directly on the possibility of higher duties, referring only to Trump’s public statements. Reuters also noted that Trump said on Friday he had signed letters to 12 countries informing them of new tariff intentions, though he did not identify which nations would receive them. Japan’s auto industry on the line Japan’s top priority in these negotiations remains securing an exemption for its automotive sector. As per Reuters, Japanese automakers are already facing a 10 per cent tariff on most exports to the US. On top of that, Washington has threatened an industry-specific tariff of 25 per cent on imported vehicles, a move that would hit Japan’s manufacturers particularly hard. After nearly three months of negotiations without a breakthrough, Tokyo’s options are narrowing. Japan is one of America’s most important trading partners, and its carmakers are major employers in the US. Yet Reuters reports that Trump has so far shown little inclination to compromise, casting doubt on whether Japan can avoid higher tariffs. Prime Minister Ishiba said his government remained determined to find a solution, but acknowledged the difficulties, stressing the need to protect key national interests even as talks drag on. An uncertain outlook With the July 9 deadline fast approaching, the risk of escalation is real. As Reuters reports, Trump has questioned whether a deal is even possible and has publicly floated higher tariff rates. For Japan, failure to secure an agreement could have damaging economic consequences, especially for its automakers and exporters. Beyond the economic impact, the standoff also threatens to strain the broader US-Japan alliance. As the two sides edge closer to a potential trade war, Japan’s negotiators are under intense pressure to avert a damaging outcome while managing an increasingly unpredictable White House. (With inputs from the agencies)

Japan faces mounting pressure as last-ditch efforts to avert steep US tariffs risk failure, threatening its key auto sector and trade ties.

Japan confirms ‘in-depth’ talks with US as tariff deadline looms

As Donald Trump pushes ahead with threats of major tariffs unless new trade deals are reached, some inside the White House say it’s all just for show. According to a Politico report, the president’s tariff warnings are part of a “theatrical show” aimed at grabbing attention rather than real policy action.Also read: <a href="https://www.wionews.com/india-news/why-is-there-no-mrp-in-us-here-s-how-american-pricing-works-1751716714620">Why is there no MRP in US? Here's how American pricing&nbsp;works</a><h2>No real urgency inside White House, say sources</h2>The 90-day countdown to implement steep tariffs is fast approaching, but the atmosphere inside the White House appears anything but urgent, Politico reported. Instead of rushing to secure agreements, negotiators and officials reportedly see the looming deadline as meaningless.“Trump knows the most interesting part of his presidency is the tariff conversation. I find it hard to believe he’s going to surrender it that easily. It’s all fake. There’s no deadline. It’s a self-imposed landmark in this theatrical show, and that’s where we are,” one insider said.<h2>Confusion and mixed signals from US negotiators</h2>Trump has put the trade talks in the hands of Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and US Trade Representative Jamieson Greer. But according to the report, none of the three have much actual power, and they often seem to be working in different directions.The result, according to Politico, has been a “convoluted process” with very little real progress. Several countries have reportedly sent delegations to negotiate, only to leave without meetings or confused about what the US actually wants. In some cases, countries that have managed to hold talks were later publicly criticised by Trump online.The lack of a clear plan and the president’s shifting tone have left many in Washington puzzled. Trump recently hinted that the 90-day window for tariffs might be shortened or extended, saying, “We could extend it, we could make it shorter. I’d like to make it shorter.”Another official offered a blunt explanation, “You have wins. Take them. You only have to assume he doesn’t want to take them because he likes the game too much.”Outside the White House, foreign officials, lawmakers, and trade experts are becoming increasingly sceptical about the process. Many now doubt whether any deal with the Trump administration holds value, as tariffs continue to be used as unpredictable leverage.

Trump has put the trade talks in the hands of Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and US Trade Representative Jamieson Greer. But according to the report, none of the three have much actual power, and they often seem to be working in different directions.

As Donald Trump pushes ahead with threats of major tariffs unless new trade deals are reached, some inside the White House say it’s all just for show. According to a Politico report, the president’s tariff warnings are part of a “theatrical show” aimed at grabbing attention rather than real policy action. Also read: Why is there no MRP in US? Here's how American pricing works No real urgency inside White House, say sources The 90-day countdown to implement steep tariffs is fast approaching, but the atmosphere inside the White House appears anything but urgent, Politico reported. Instead of rushing to secure agreements, negotiators and officials reportedly see the looming deadline as meaningless. “Trump knows the most interesting part of his presidency is the tariff conversation. I find it hard to believe he’s going to surrender it that easily. It’s all fake. There’s no deadline. It’s a self-imposed landmark in this theatrical show, and that’s where we are,” one insider said. Confusion and mixed signals from US negotiators Trump has put the trade talks in the hands of Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and US Trade Representative Jamieson Greer. But according to the report, none of the three have much actual power, and they often seem to be working in different directions. The result, according to Politico, has been a “convoluted process” with very little real progress. Several countries have reportedly sent delegations to negotiate, only to leave without meetings or confused about what the US actually wants. In some cases, countries that have managed to hold talks were later publicly criticised by Trump online. The lack of a clear plan and the president’s shifting tone have left many in Washington puzzled. Trump recently hinted that the 90-day window for tariffs might be shortened or extended, saying, “We could extend it, we could make it shorter. I’d like to make it shorter.” Another official offered a blunt explanation, “You have wins. Take them. You only have to assume he doesn’t want to take them because he likes the game too much.” Outside the White House, foreign officials, lawmakers, and trade experts are becoming increasingly sceptical about the process. Many now doubt whether any deal with the Trump administration holds value, as tariffs continue to be used as unpredictable leverage.

Trump has put the trade talks in the hands of Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and US Trade Representative Jamieson Greer. But according to the report, none of the three have much actual power, and they often seem to be working in different directions.

‘It’s all fake’: Trump’s trade war just for show? White House insider claims tariff threats are ‘theatrical game’

President Donald Trump and his administration have claimed that tariffs being planned on US trade partners could yeild between $600 billion to $1 trillion annually, but fact checks and estimates in media and analyst reports vary. The tariffs are set to kick in from August 1, for countries who do not reach trade deals with the US before Trumps' July 9 deadline. The actual amount the US would get is still being debated. What are various estimates saying? Let's take a look.&nbsp;<h2>Tariffs are not paid by countries, but importers, and consumers could suffer</h2>Contrary to the perception being created, the tariffs are not paid by trading partner countries, but by importers of goods and services in the US. Most likely, they will transfer the cost to consumers in the US, by raising prices. This could lead to reduced demand for goods whose prices go up as a result of tariffs.Also, the tariffs can cause reduction in economic output, as importing raw materials or finished goods from affected countries become less attractive for US businesses. Any gains from tariffs could be offset by reduction in other revenues like income and payrole taxes, according to recent assessments by the Wharton School of Buiness in the University of Pensylvania and the Yale School of Business.<h2>White House claims vs factchecks on Trump tariff revenues</h2>Trump, his officials and the White House claimed in various statements that tariffs, likely to range between 70 per cent to 10 per cent for different countries, could generate between $600 billion to $1 trillion for the US each year. Auto tariffs alone could yeild $100 billion per year, as per these claims.&nbsp; These figures, however, have been widely disputed in factchecks in the US media, which say that they're too optimistic, and without proper methodologies. Accoridng to these reports citing economists and think tanks, the revenue is overestimated.<h2>What the treasury department estimates say about Trump tariff gains</h2>A clearer indication might come from US Treasury Department figures of June 20, which put tariff revenues at $75 billion for the month. The June figure is, however, significantly higher from previous months of May 2025 ($23bn), April ($15.9bn) and March ($9.6 bn). When annualised, it can be as much as $255bn for the whole of 2025. One thing, however, is clear: Tariff revenues are progressively increasing, and in the event of expansion from August 1, the income could rise.<h2>Research estimates on Trump tariff revenues vary from optimistic to pessimistic</h2>According to the Washingon DC think tank Tax Foundation, a 10 per cent universal tariff could rake in $200 bn annually, which works out to $2 trillion over 10 years. Similarly, a 20 per cent universal tariff could raise $3.3tn in a decade, or around $330bn per year. The think tank's estimates factored in reduced import volumes and an 85 per cent. Yet it does not fully account for dynamic economic effects, like GDP reduction.&nbsp;&nbsp;The Penn Wharton Budget Model projected in April that US could raise $5.2 trillion over 10 years, or $520 billion annually on a conventional basis. With dynamic situations (meaning different tarrifs for different countries and import fluctuations), this could go up to $4.5 tn, or $450 bn per year.&nbsp;Similarly, the Yale Budget Lab estimated a gain of $310 bn annually, which is $3.1 trillion over 10 years. As per this calculation, when the tariff breakdown was announced by Trump on April 2, the estimate was $1.4 trillion over 2026–2035, or at best $140 billion annually. But much has changed on the ground since April 2, as the US reached some trade deals with China, UK and Vietnam, and entered into negotiations with Canada and India.&nbsp;<a href="https://www.wionews.com/videos/will-tariffs-end-the-global-flow-of-entertainment-9040587/embed">https://www.wionews.com/videos/will-tariffs-end-the-global-flow-of-entertainment-9040587/embed</a>&nbsp;The Peterson Institute for International Economics posited that even a hypothetical 50 per cent tariff on all imports would generate $780 bn per year, below Trump’s $1 trillion claim but still optimistic.&nbsp;The Committee for a Responsible Federal Budget analysing tariffs on China at 10 per cent, Canada at 25 per cent, and Mexico at 25 per cent estimated a gain of $130 billion in 2025 if fully implemented, or $1.3 trillion over 10 years. JP Morgan Research, based on tariffs announced by March 2025, estimated the figure at less than $400 billion annually, assuming imports remain the same.<h2>How will tariffs hit the US GDP and consumers?</h2>Various estimates have been made. Wharton, Yale and American Progress estimates show that tariffs can reduce the US GDP in the long term by up to 8 per cent. Consumer prices could go up, with households estimated to bear additional costs of up to $5,200 annually.<h2>Retaliatory tariffs could hit Americans hard</h2>At various times in the tariff war, China has threatened up to 125 per cent tariff on the US. Canada and Mexico have made similar threats.Some countries could divert divert tarde to non-tariffed countries and round-trip goods to the US. Both these could hit Americans hard.<h2>So what are the credible estimates of Trump tariff revenues?</h2>According to reports in US media outlets like CBS, Axios and Newsweek, if all tariff-affected countries’ imports were subject to the 2025 tariffs, annual revenue could range from $130 bn to $520 bn. Most of the credible estimates are at $250–400 bn after factoring in import reductions and other dynamic effects.&nbsp;They argue that the White House’s $600 billion–$1 trillion gain is possibly inflated beacuse even a 50 per cent universal tariff would not cross $780 billion annually. If the current tariff collections are anualised, the most optimistic figure would be around $255 billion, according to these reports.<h2>So is Trump overstating the gains from tariffs?</h2>Probably yes. The US president's claims of $600 billion to $1 trillion gains from tariffs is far higher than independent assessments. At best, they range from $130 bn to $520 bn per year. Even several of these estimates are assuming that import levels would remain same as before, and ignore that demand would reduce, and retaliatory tariffs could hit US exports.

The tariffs are set to kick in from August 1, for countries who do not reach trade deals with the US before Trumps' July 9 deadline. The actual amount the US would get is still being debated. What are various estimates saying? Let's take a look.

President Donald Trump and his administration have claimed that tariffs being planned on US trade partners could yeild between $600 billion to $1 trillion annually, but fact checks and estimates in media and analyst reports vary. The tariffs are set to kick in from August 1, for countries who do not reach trade deals with the US before Trumps' July 9 deadline. The actual amount the US would get is still being debated. What are various estimates saying? Let's take a look. Tariffs are not paid by countries, but importers, and consumers could suffer Contrary to the perception being created, the tariffs are not paid by trading partner countries, but by importers of goods and services in the US. Most likely, they will transfer the cost to consumers in the US, by raising prices. This could lead to reduced demand for goods whose prices go up as a result of tariffs. Also, the tariffs can cause reduction in economic output, as importing raw materials or finished goods from affected countries become less attractive for US businesses. Any gains from tariffs could be offset by reduction in other revenues like income and payrole taxes, according to recent assessments by the Wharton School of Buiness in the University of Pensylvania and the Yale School of Business. White House claims vs factchecks on Trump tariff revenues Trump, his officials and the White House claimed in various statements that tariffs, likely to range between 70 per cent to 10 per cent for different countries, could generate between $600 billion to $1 trillion for the US each year. Auto tariffs alone could yeild $100 billion per year, as per these claims. These figures, however, have been widely disputed in factchecks in the US media, which say that they're too optimistic, and without proper methodologies. Accoridng to these reports citing economists and think tanks, the revenue is overestimated. What the treasury department estimates say about Trump tariff gains A clearer indication might come from US Treasury Department figures of June 20, which put tariff revenues at $75 billion for the month. The June figure is, however, significantly higher from previous months of May 2025 ($23bn), April ($15.9bn) and March ($9.6 bn). When annualised, it can be as much as $255bn for the whole of 2025. One thing, however, is clear: Tariff revenues are progressively increasing, and in the event of expansion from August 1, the income could rise. Research estimates on Trump tariff revenues vary from optimistic to pessimistic According to the Washingon DC think tank Tax Foundation, a 10 per cent universal tariff could rake in $200 bn annually, which works out to $2 trillion over 10 years. Similarly, a 20 per cent universal tariff could raise $3.3tn in a decade, or around $330bn per year. The think tank's estimates factored in reduced import volumes and an 85 per cent. Yet it does not fully account for dynamic economic effects, like GDP reduction. The Penn Wharton Budget Model projected in April that US could raise $5.2 trillion over 10 years, or $520 billion annually on a conventional basis. With dynamic situations (meaning different tarrifs for different countries and import fluctuations), this could go up to $4.5 tn, or $450 bn per year. Similarly, the Yale Budget Lab estimated a gain of $310 bn annually, which is $3.1 trillion over 10 years. As per this calculation, when the tariff breakdown was announced by Trump on April 2, the estimate was $1.4 trillion over 2026–2035, or at best $140 billion annually. But much has changed on the ground since April 2, as the US reached some trade deals with China, UK and Vietnam, and entered into negotiations with Canada and India. https://www.wionews.com/videos/will-tariffs-end-the-global-flow-of-entertainment-9040587/embed The Peterson Institute for International Economics posited that even a hypothetical 50 per cent tariff on all imports would generate $780 bn per year, below Trump’s $1 trillion claim but still optimistic. The Committee for a Responsible Federal Budget analysing tariffs on China at 10 per cent, Canada at 25 per cent, and Mexico at 25 per cent estimated a gain of $130 billion in 2025 if fully implemented, or $1.3 trillion over 10 years. JP Morgan Research, based on tariffs announced by March 2025, estimated the figure at less than $400 billion annually, assuming imports remain the same. How will tariffs hit the US GDP and consumers? Various estimates have been made. Wharton, Yale and American Progress estimates show that tariffs can reduce the US GDP in the long term by up to 8 per cent. Consumer prices could go up, with households estimated to bear additional costs of up to $5,200 annually. Retaliatory tariffs could hit Americans hard At various times in the tariff war, China has threatened up to 125 per cent tariff on the US. Canada and Mexico have made similar threats. Some countries could divert divert tarde to non-tariffed countries and round-trip goods to the US. Both these could hit Americans hard. So what are the credible estimates of Trump tariff revenues? According to reports in US media outlets like CBS, Axios and Newsweek, if all tariff-affected countries’ imports were subject to the 2025 tariffs, annual revenue could range from $130 bn to $520 bn. Most of the credible estimates are at $250–400 bn after factoring in import reductions and other dynamic effects. They argue that the White House’s $600 billion–$1 trillion gain is possibly inflated beacuse even a 50 per cent universal tariff would not cross $780 billion annually. If the current tariff collections are anualised, the most optimistic figure would be around $255 billion, according to these reports. So is Trump overstating the gains from tariffs? Probably yes. The US president's claims of $600 billion to $1 trillion gains from tariffs is far higher than independent assessments. At best, they range from $130 bn to $520 bn per year. Even several of these estimates are assuming that import levels would remain same as before, and ignore that demand would reduce, and retaliatory tariffs could hit US exports.

The tariffs are set to kick in from August 1, for countries who do not reach trade deals with the US before Trumps' July 9 deadline. The actual amount the US would get is still being debated. What are various estimates saying? Let's take a look.

$1 TRILLION for the US from tariffs every year? Trump claims so, but it's complicated. Here are best and worst projections

After the US Congress passed the spending bill, President Donald Trump is turning his focus to implementing the widely-feared import tariffs. With what he called the 'Big Beautiful Bill' on his table to sign, Trump needs money to spend, and the tariffs could be one answer to where it will come from.<h2>Tariffs to start from August 1 as July 9 deadline not to be extended</h2>The often-unpredictable American president had said earlier that the July 9 pause on tarrifs will not be extended. Several countries incuding India have been negotiating an ease on tariffs or trade deals with the US ahead of the August 1 deadline. But in all likelihood, the tariffs will be implemented in some form or the other.<h2>‘10-12 countries’ to get letters Friday: Trump on tariffs</h2>On Thursday (July 3), Trump said his administration will start sending out letters to trading partner countries starting Friday. He said countries will have to start paying from August 1.&nbsp;"10 or 12" countries will get the letters on Friday, he said, with additional letters “over the next few days.”The tariffs will range from 10 per cent to 70 per cent for different countries, he said.“They’ll be fully covered and they’ll range in value from maybe 60 or 70 per cent tariffs to 10 and 20 per cent tariffs,” Trump told reporters. “I think by the ninth [July 9] they’ll be fully covered.”“The money will start to come into the United States on August 1,” Trump added.<h2>Some trade deals in place as July 9 Trump tariff deadline looms</h2>Trump has not yet specified which countries would face the highest tariffs, or which specific goods were to be targeted.In fact, the top rate of 70 per cent is even higher than what Trump had outlined on April 2, which he called “Liberation Day”. <a href="https://www.wionews.com/videos/trump-team-highlights-indias-high-tariffs-8916254/embed">https://www.wionews.com/videos/trump-team-highlights-indias-high-tariffs-8916254/embed</a>&nbsp;China, one of the main targets of Trump's tariff ire, has reached an initial agreement with the US on the tariffs. The UK and Vietnam are the only other countries that have such deals in place. For Vietnam, the deal is for a 20 per cent tariff on exports and a 40 tariff on transshipped goods.Talks with Canada were canceled over differences over its move to tax US tech companies. WIth India, trade negotiations are ongoing and a mini trade deal is expected any time before July 9 deadline.<h2>Trump seems determined to roll out tariffs</h2>“We have a couple of other deals, but you know, my inclination is to send a letter out and say what tariffs they are going to be paying,” Trump said.This in all likelihood means that the tariff wars are coming, and was not an empty threat of Trump.&nbsp;

Several countries incuding India have been negotiating ease on tariffs or trade deals with the US ahead of the August 1 deadline. But in all likelihood, the tariffs will be implemented in some form or the other

After the US Congress passed the spending bill, President Donald Trump is turning his focus to implementing the widely-feared import tariffs. With what he called the 'Big Beautiful Bill' on his table to sign, Trump needs money to spend, and the tariffs could be one answer to where it will come from. Tariffs to start from August 1 as July 9 deadline not to be extended The often-unpredictable American president had said earlier that the July 9 pause on tarrifs will not be extended. Several countries incuding India have been negotiating an ease on tariffs or trade deals with the US ahead of the August 1 deadline. But in all likelihood, the tariffs will be implemented in some form or the other. ‘10-12 countries’ to get letters Friday: Trump on tariffs On Thursday (July 3), Trump said his administration will start sending out letters to trading partner countries starting Friday. He said countries will have to start paying from August 1. "10 or 12" countries will get the letters on Friday, he said, with additional letters “over the next few days.” The tariffs will range from 10 per cent to 70 per cent for different countries, he said. “They’ll be fully covered and they’ll range in value from maybe 60 or 70 per cent tariffs to 10 and 20 per cent tariffs,” Trump told reporters. “I think by the ninth [July 9] they’ll be fully covered.” “The money will start to come into the United States on August 1,” Trump added. Some trade deals in place as July 9 Trump tariff deadline looms Trump has not yet specified which countries would face the highest tariffs, or which specific goods were to be targeted. In fact, the top rate of 70 per cent is even higher than what Trump had outlined on April 2, which he called “Liberation Day”. https://www.wionews.com/videos/trump-team-highlights-indias-high-tariffs-8916254/embed China, one of the main targets of Trump's tariff ire, has reached an initial agreement with the US on the tariffs. The UK and Vietnam are the only other countries that have such deals in place. For Vietnam, the deal is for a 20 per cent tariff on exports and a 40 tariff on transshipped goods. Talks with Canada were canceled over differences over its move to tax US tech companies. WIth India, trade negotiations are ongoing and a mini trade deal is expected any time before July 9 deadline. Trump seems determined to roll out tariffs “We have a couple of other deals, but you know, my inclination is to send a letter out and say what tariffs they are going to be paying,” Trump said. This in all likelihood means that the tariff wars are coming, and was not an empty threat of Trump.

Several countries incuding India have been negotiating ease on tariffs or trade deals with the US ahead of the August 1 deadline. But in all likelihood, the tariffs will be implemented in some form or the other

LETTERS GO OUT FROM TODAY: Trump tariffs to kick in from August 1, some countries could get tariffs as high as 70 per cent

South Korea’s new President Lee Jae Myung has acknowledged that it remains unclear whether Seoul and Washington can settle their high-stakes tariff negotiations before a deadline set by US President Donald Trump, as both sides struggle to reconcile competing demands. At his first news conference since taking office last month, Lee struck a cautious tone, saying talks with the United States were “clearly not easy” and that negotiators were still working to clarify their positions and define common ground. As per the Associated Press, Lee warned that it was impossible to guarantee an agreement before Trump’s deadline next week, even as both governments race to avoid punishing new tariffs on South Korean exports.<h2>A deadline with big stakes</h2>The sense of urgency stems from Trump’s 90-day pause on new “global reciprocal tariffs,” which is set to expire on July 9. Once that pause ends, South Korean goods could be hit with sweeping 25 per cent tariffs—posing a major threat to the trade-dependent economy. South Korean officials are particularly worried about the possibility of higher duties on critical sectors such as automobiles and semiconductors. According to the Associated Press, these industries are the backbone of the country’s exports and a vital source of jobs and growth.&nbsp;Lee said it was essential to secure a “truly reciprocal outcome that benefits both sides,” but admitted the process was proving complex and politically sensitive. “It’s difficult to say with certainty whether we will be able to reach a conclusion by July 8. We are now doing our best,” he told reporters.<h2>Trump’s tough stance</h2>President Trump has championed his “America First” approach to trade, demanding what he calls fairer, more balanced deals with key partners. The Trump administration argues that some foreign producers have unfairly benefited from past trade rules at America’s expense. The Associated Press reports that Trump has also insisted on new tariff measures to stop companies from evading existing duties by shipping Chinese-made goods through third countries like Vietnam or South Korea.&nbsp;Beyond tariffs, there are concerns in Seoul that Trump might use the trade negotiations to demand higher payments from South Korea to cover the cost of hosting 28,000 US troops on the peninsula forces seen as vital to deterring North Korean threats.<h2>Lee’s cautious approach</h2>Lee, who came to power after winning a snap election following the ouster of conservative President Yoon Suk Yeol, has sought to balance a firm defence of South Korea’s interests with a pragmatic approach to US ties.&nbsp;&nbsp;The Associated Press notes that Lee has consistently urged patience in tariff negotiations, arguing that rushing into a deal could undermine the national interest. His trade minister, Yeo Han-koo, is reportedly arranging meetings in Washington with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick in a last-ditch bid to secure a compromise.<h2>Broader diplomatic goals</h2>While trade is dominating headlines, Lee also used his news conference to lay out his vision for improving relations with North Korea. According to the Associated Press, Lee pledged to restart long-dormant inter-Korean talks, despite acknowledging that deep-seated distrust would make quick progress difficult. He also proposed resuming more frequent summits with Japan and reaffirmed his intention to pursue “pragmatic diplomacy” that balances ties with the US, China, Russia and North Korea.&nbsp;Lee’s government has already taken small steps to ease tensions with Pyongyang, halting anti-North propaganda broadcasts at the border and cracking down on activists who send leaflet balloons across the heavily fortified frontier.<h2>A delicate balance</h2>Lee’s challenge now is to secure a trade deal with Washington that shields Korean industry from crippling tariffs, while also managing an unpredictable relationship with North Korea and navigating Trump’s transactional approach to alliances.&nbsp;As the tariff deadline looms, South Korea’s new president is walking a tightrope, seeking to avoid economic disruption while maintaining the country’s strategic security partnership with the United States.&nbsp;(With inputs from the agencies)&nbsp;

With US tariffs set to hit South Korean exports, President Lee Jae Myung voices doubts over reaching a deal in time, as Seoul scrambles to protect key industries and manage diplomatic ties with Washington.

South Korea’s new President Lee Jae Myung has acknowledged that it remains unclear whether Seoul and Washington can settle their high-stakes tariff negotiations before a deadline set by US President Donald Trump, as both sides struggle to reconcile competing demands. At his first news conference since taking office last month, Lee struck a cautious tone, saying talks with the United States were “clearly not easy” and that negotiators were still working to clarify their positions and define common ground. As per the Associated Press, Lee warned that it was impossible to guarantee an agreement before Trump’s deadline next week, even as both governments race to avoid punishing new tariffs on South Korean exports. A deadline with big stakes The sense of urgency stems from Trump’s 90-day pause on new “global reciprocal tariffs,” which is set to expire on July 9. Once that pause ends, South Korean goods could be hit with sweeping 25 per cent tariffs—posing a major threat to the trade-dependent economy. South Korean officials are particularly worried about the possibility of higher duties on critical sectors such as automobiles and semiconductors. According to the Associated Press, these industries are the backbone of the country’s exports and a vital source of jobs and growth. Lee said it was essential to secure a “truly reciprocal outcome that benefits both sides,” but admitted the process was proving complex and politically sensitive. “It’s difficult to say with certainty whether we will be able to reach a conclusion by July 8. We are now doing our best,” he told reporters. Trump’s tough stance President Trump has championed his “America First” approach to trade, demanding what he calls fairer, more balanced deals with key partners. The Trump administration argues that some foreign producers have unfairly benefited from past trade rules at America’s expense. The Associated Press reports that Trump has also insisted on new tariff measures to stop companies from evading existing duties by shipping Chinese-made goods through third countries like Vietnam or South Korea. Beyond tariffs, there are concerns in Seoul that Trump might use the trade negotiations to demand higher payments from South Korea to cover the cost of hosting 28,000 US troops on the peninsula forces seen as vital to deterring North Korean threats. Lee’s cautious approach Lee, who came to power after winning a snap election following the ouster of conservative President Yoon Suk Yeol, has sought to balance a firm defence of South Korea’s interests with a pragmatic approach to US ties. The Associated Press notes that Lee has consistently urged patience in tariff negotiations, arguing that rushing into a deal could undermine the national interest. His trade minister, Yeo Han-koo, is reportedly arranging meetings in Washington with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick in a last-ditch bid to secure a compromise. Broader diplomatic goals While trade is dominating headlines, Lee also used his news conference to lay out his vision for improving relations with North Korea. According to the Associated Press, Lee pledged to restart long-dormant inter-Korean talks, despite acknowledging that deep-seated distrust would make quick progress difficult. He also proposed resuming more frequent summits with Japan and reaffirmed his intention to pursue “pragmatic diplomacy” that balances ties with the US, China, Russia and North Korea. Lee’s government has already taken small steps to ease tensions with Pyongyang, halting anti-North propaganda broadcasts at the border and cracking down on activists who send leaflet balloons across the heavily fortified frontier. A delicate balance Lee’s challenge now is to secure a trade deal with Washington that shields Korean industry from crippling tariffs, while also managing an unpredictable relationship with North Korea and navigating Trump’s transactional approach to alliances. As the tariff deadline looms, South Korea’s new president is walking a tightrope, seeking to avoid economic disruption while maintaining the country’s strategic security partnership with the United States. (With inputs from the agencies)

South Korea’s President Lee Jae Myung warns of uncertainty over sealing a US tariff deal before Trump’s looming July 9 deadline.

US–South Korea tariff deal in doubt as Trump’s deadline approaches

China has issued a stark warning that it will retaliate if its interests are threatened by the newly finalised trade agreement between the United States and Vietnam, underscoring the growing friction between Beijing and Washington as both countries recalibrate their global supply chains. The comments, delivered at a press briefing in Beijing, reflect China’s deep concern that the US is striking trade deals across Asia designed to curb its economic clout. According to Bloomberg, China’s Ministry of Commerce made clear it would not accept being sidelined in the region without responding.<h2>Beijing signals strong opposition</h2>At Thursday’s briefing, He Yongqian, a spokeswoman for China’s Ministry of Commerce, said Beijing is closely reviewing the details of the US–Vietnam deal to assess whether it damages China’s commercial interests. “We are happy to see all parties resolve trade conflicts with the US through equal negotiations but firmly oppose any party striking a deal at the expense of China’s interests,” He said, as reported by Bloomberg.&nbsp;She added that if the agreement were found to harm China, the country would “firmly strike back to protect its own legitimate rights and interests,” though she did not specify what form those countermeasures might take.<h2>What’s in the US–Vietnam deal?</h2>The warning comes just days after US President Donald Trump announced a new trade deal with Vietnam that includes a 40 per cent tariff on goods suspected of being transshipped through the country to evade existing US tariffs on Chinese-made products. As per Bloomberg, the Trump administration has targeted this practice, where companies move Chinese-made products to Vietnam, relabel them, and then ship them to the US to avoid tariffs, as part of its broader effort to reduce America’s trade deficit with China.&nbsp;Trump has insisted that the new tariff structure is essential to stop what he describes as unfair trade practices and to ensure that tariffs imposed on China cannot simply be circumvented through Vietnam.<h2>China’s broader trade worries</h2>Bloomberg notes that Beijing’s reaction reflects a broader anxiety about US efforts to build alternative supply chains in Asia, away from China. Washington has struck or is negotiating a series of trade agreements with countries across the Indo-Pacific, aiming to diversify manufacturing bases and reduce strategic dependencies on China, especially for critical technologies and industrial goods.&nbsp;This strategy has angered Chinese officials, who see it as an attempt to isolate China economically and contain its rise. The Ministry of Commerce’s latest comments are a continuation of Beijing’s tough line, signalling that any deals threatening China’s trade flows will be met with a response.<h2>Other trade tensions simmering</h2>China’s trade authorities also addressed another point of contention on Thursday. When asked about the ongoing anti-dumping probe into European Union brandy imports, the Ministry of Commerce said it would issue a final decision in the coming days.&nbsp;That investigation has been widely viewed as a retaliatory measure against EU moves to curb Chinese electric vehicle exports, a sign that Beijing is willing to use trade policy as leverage in multiple arenas.<h2>A fragile moment for global trade</h2>As per Bloomberg, China’s warning over the US–Vietnam deal highlights just how fragile the global trade environment remains. While Washington and its partners seek to secure supply chains and reduce over-reliance on China, Beijing views these moves as a direct challenge to its economic interests and is promising retaliation if it believes the country is being deliberately shut out.&nbsp;The escalating rhetoric underscores the risk of further trade tensions and tit-for-tat measures that could weigh on global commerce, unsettle markets, and complicate diplomatic ties well beyond Asia.&nbsp;(With inputs from the agencies)&nbsp;

Beijing issues a strong response to the new US–Vietnam trade agreement, accusing Washington of sidelining China and vowing to defend its trade interests, Bloomberg reports.

China has issued a stark warning that it will retaliate if its interests are threatened by the newly finalised trade agreement between the United States and Vietnam, underscoring the growing friction between Beijing and Washington as both countries recalibrate their global supply chains. The comments, delivered at a press briefing in Beijing, reflect China’s deep concern that the US is striking trade deals across Asia designed to curb its economic clout. According to Bloomberg, China’s Ministry of Commerce made clear it would not accept being sidelined in the region without responding. Beijing signals strong opposition At Thursday’s briefing, He Yongqian, a spokeswoman for China’s Ministry of Commerce, said Beijing is closely reviewing the details of the US–Vietnam deal to assess whether it damages China’s commercial interests. “We are happy to see all parties resolve trade conflicts with the US through equal negotiations but firmly oppose any party striking a deal at the expense of China’s interests,” He said, as reported by Bloomberg. She added that if the agreement were found to harm China, the country would “firmly strike back to protect its own legitimate rights and interests,” though she did not specify what form those countermeasures might take. What’s in the US–Vietnam deal? The warning comes just days after US President Donald Trump announced a new trade deal with Vietnam that includes a 40 per cent tariff on goods suspected of being transshipped through the country to evade existing US tariffs on Chinese-made products. As per Bloomberg, the Trump administration has targeted this practice, where companies move Chinese-made products to Vietnam, relabel them, and then ship them to the US to avoid tariffs, as part of its broader effort to reduce America’s trade deficit with China. Trump has insisted that the new tariff structure is essential to stop what he describes as unfair trade practices and to ensure that tariffs imposed on China cannot simply be circumvented through Vietnam. China’s broader trade worries Bloomberg notes that Beijing’s reaction reflects a broader anxiety about US efforts to build alternative supply chains in Asia, away from China. Washington has struck or is negotiating a series of trade agreements with countries across the Indo-Pacific, aiming to diversify manufacturing bases and reduce strategic dependencies on China, especially for critical technologies and industrial goods. This strategy has angered Chinese officials, who see it as an attempt to isolate China economically and contain its rise. The Ministry of Commerce’s latest comments are a continuation of Beijing’s tough line, signalling that any deals threatening China’s trade flows will be met with a response. Other trade tensions simmering China’s trade authorities also addressed another point of contention on Thursday. When asked about the ongoing anti-dumping probe into European Union brandy imports, the Ministry of Commerce said it would issue a final decision in the coming days. That investigation has been widely viewed as a retaliatory measure against EU moves to curb Chinese electric vehicle exports, a sign that Beijing is willing to use trade policy as leverage in multiple arenas. A fragile moment for global trade As per Bloomberg, China’s warning over the US–Vietnam deal highlights just how fragile the global trade environment remains. While Washington and its partners seek to secure supply chains and reduce over-reliance on China, Beijing views these moves as a direct challenge to its economic interests and is promising retaliation if it believes the country is being deliberately shut out. The escalating rhetoric underscores the risk of further trade tensions and tit-for-tat measures that could weigh on global commerce, unsettle markets, and complicate diplomatic ties well beyond Asia. (With inputs from the agencies)

China warns of retaliation over the US–Vietnam trade deal, citing threats to its interests amid escalating regional supply chain tensions.

China warns of retaliation over US–Vietnam trade deal as tensions flare

China has signalled its willingness to renegotiate trade terms with the United States, but on its own conditions. A senior Chinese delegate in Geneva told Reuters that Beijing is prepared to discuss tariffs, subsidies, and even some benefits linked to its developing country status at the World Trade Organization.&nbsp;This is a rare indication of flexibility from Beijing, which has long defended its trade privileges under WTO rules. The comments come as WTO members prepare for an ambitious reform agenda ahead of the next ministerial meeting in 2026 in Cameroon.<h2>US–China tensions spilling into Geneva</h2>The remarks follow months of intensifying trade tensions between Washington and Beijing. The tariffs imposed during President Donald Trump’s first term have largely remained in place, with his second administration introducing new duties this year targeting Chinese electric vehicles, semiconductors, and solar panels.&nbsp;China has retaliated with its own trade measures and disputes at the WTO. Yet, despite the rhetoric, Chinese officials in Geneva are striking a more pragmatic tone.&nbsp;According to Reuters, the delegate, who asked not to be named said China had “heard every word” spoken by the US at the WTO and is ready to engage on difficult issues, including industrial policy and tariff schedules.&nbsp;However, there is a clear red line.&nbsp;Beijing insists its developing country status is non-negotiable. That designation confers Special and Differential Treatment (SDT) under WTO rules, allowing more lenient subsidy limits and higher tariff ceilings. Yet the delegate indicated China might voluntarily forgo SDT benefits in some talks, just as it did recently on fisheries and domestic regulation reforms.<h2>US demands complete SDT rollback</h2>At the heart of the debate is Special and Differential Treatment (SDT), a WTO principle that gives developing countries additional flexibility in global trade rules. SDT lets them maintain higher tariff limits, use more subsidies, and enjoy longer timelines to implement WTO agreements.&nbsp;Beijing insists its developing country status is non-negotiable. That status automatically provides access to SDT benefits. However, the Chinese delegate suggested Beijing might voluntarily forgo SDT in specific negotiations, as it did recently on fisheries and domestic regulation reforms.&nbsp;The United States has pushed for a harder stance. Washington argues that major economies such as China and Saudi Arabia abuse the ‘developing country’ label to secure unfair trade advantages. US negotiators want countries like China to fully abandon SDT, not selectively give it up in certain areas.&nbsp;Keith M. Rockwell, former WTO spokesperson and now senior research fellow at the Hinrich Foundation, told Reuters he remains sceptical that China will go that far. In politically sensitive sectors such as agriculture, he doubts Beijing would willingly relinquish SDT privileges. China’s delegate nonetheless said the country is open to discussing subsidies, but only if talks are conducted in good faith. What Beijing will not accept, the official stressed, is any attempt to alter its state-led economic system.<h2>Tariff talks may begin under WTO’s Article 28</h2>Significantly, Beijing has also suggested it is ready to renegotiate tariffs under Article 28 of the WTO framework, a provision that allows members to modify tariff bindings under specific conditions.“We welcome the US to come back to the WTO,” the delegate told Reuters. “We are ready to renegotiate on Article 28 if the US raises their requests here.”&nbsp;That invitation follows what China described as “positive” trade discussions in Geneva and London. Yet despite warmer words, the fundamental tensions, from electric vehicle tariffs to technology sanctions, remain unresolved.&nbsp;As both sides talk about WTO reform, the real test will be whether these gestures of flexibility lead to genuine commitments at the negotiating table. (With inputs from the agencies)&nbsp;

China signals rare flexibility on WTO trade reforms, offering to discuss tariffs and subsidies, but insists its developing country status remains non-negotiable.

China has signalled its willingness to renegotiate trade terms with the United States, but on its own conditions. A senior Chinese delegate in Geneva told Reuters that Beijing is prepared to discuss tariffs, subsidies, and even some benefits linked to its developing country status at the World Trade Organization. This is a rare indication of flexibility from Beijing, which has long defended its trade privileges under WTO rules. The comments come as WTO members prepare for an ambitious reform agenda ahead of the next ministerial meeting in 2026 in Cameroon. US–China tensions spilling into Geneva The remarks follow months of intensifying trade tensions between Washington and Beijing. The tariffs imposed during President Donald Trump’s first term have largely remained in place, with his second administration introducing new duties this year targeting Chinese electric vehicles, semiconductors, and solar panels. China has retaliated with its own trade measures and disputes at the WTO. Yet, despite the rhetoric, Chinese officials in Geneva are striking a more pragmatic tone. According to Reuters, the delegate, who asked not to be named said China had “heard every word” spoken by the US at the WTO and is ready to engage on difficult issues, including industrial policy and tariff schedules. However, there is a clear red line. Beijing insists its developing country status is non-negotiable. That designation confers Special and Differential Treatment (SDT) under WTO rules, allowing more lenient subsidy limits and higher tariff ceilings. Yet the delegate indicated China might voluntarily forgo SDT benefits in some talks, just as it did recently on fisheries and domestic regulation reforms. US demands complete SDT rollback At the heart of the debate is Special and Differential Treatment (SDT), a WTO principle that gives developing countries additional flexibility in global trade rules. SDT lets them maintain higher tariff limits, use more subsidies, and enjoy longer timelines to implement WTO agreements. Beijing insists its developing country status is non-negotiable. That status automatically provides access to SDT benefits. However, the Chinese delegate suggested Beijing might voluntarily forgo SDT in specific negotiations, as it did recently on fisheries and domestic regulation reforms. The United States has pushed for a harder stance. Washington argues that major economies such as China and Saudi Arabia abuse the ‘developing country’ label to secure unfair trade advantages. US negotiators want countries like China to fully abandon SDT, not selectively give it up in certain areas. Keith M. Rockwell, former WTO spokesperson and now senior research fellow at the Hinrich Foundation, told Reuters he remains sceptical that China will go that far. In politically sensitive sectors such as agriculture, he doubts Beijing would willingly relinquish SDT privileges. China’s delegate nonetheless said the country is open to discussing subsidies, but only if talks are conducted in good faith. What Beijing will not accept, the official stressed, is any attempt to alter its state-led economic system. Tariff talks may begin under WTO’s Article 28 Significantly, Beijing has also suggested it is ready to renegotiate tariffs under Article 28 of the WTO framework, a provision that allows members to modify tariff bindings under specific conditions. “We welcome the US to come back to the WTO,” the delegate told Reuters. “We are ready to renegotiate on Article 28 if the US raises their requests here.” That invitation follows what China described as “positive” trade discussions in Geneva and London. Yet despite warmer words, the fundamental tensions, from electric vehicle tariffs to technology sanctions, remain unresolved. As both sides talk about WTO reform, the real test will be whether these gestures of flexibility lead to genuine commitments at the negotiating table. (With inputs from the agencies)

Amid renewed US–China trade tensions, Beijing shows openness to WTO tariff talks and selective SDT concessions, while firmly defending its developing nation status in global trade negotiations.

China says it’s ready to talk tariffs and subsidies with US at WTO

Britain’s shoppers are feeling the squeeze again, with shop prices rising for the first time in nearly a year. Supermarkets in particular are under pressure from higher taxes, wage increases and soaring wholesale food costs driven by global disruptions, according to data reported by Bloomberg.<h2>First rise in shop inflation in nearly a year</h2>Shop price inflation in the UK turned positive in June, rising by 0.4 per cent year-on-year after showing a slight decline of 0.1 per cent in May, as per the British Retail Consortium (BRC). This marks the first annual increase since mid-2023, signalling renewed price pressures in the retail sector.&nbsp;Bloomberg reported that the main driver was food price inflation, which jumped by 3.7 per cent, the fastest annual pace since March 2024. The BRC warned this reflected both domestic policy changes and broader global trends pushing up costs for retailers.<h2>Higher taxes and wages squeeze retailers</h2>Retailers point to the UK government’s latest revenue-raising measures as a key cause of rising costs. Bloomberg notes that Chancellor Jeremy Hunt’s budget included a 6.7 per cent rise in the national minimum wage and a £26 billion increase in payroll taxes, both of which took effect in April.&nbsp;The BRC argued these policies have significantly raised operating expenses just as retailers are battling higher wholesale food prices, driven by geopolitical tensions disrupting supply chains and the effects of climate change on agricultural yields. Helen Dickinson, chief executive of the BRC, urged the government to step in. “The government must find ways to alleviate the cost pressures bearing down on retailers,” she said, as quoted by Bloomberg.<h2>Weather worsens food price inflation</h2>Climate factors are also playing a role in driving prices higher. According to Bloomberg, the BRC warned that hot, dry weather is reducing yields for fruits and vegetables, adding further upward pressure on supermarket prices.&nbsp;While non-food prices continued to decline overall, they did so at the slowest pace since July 2023, offering little relief to consumers already contending with higher bills for essentials.<h2>Bank of England faces tough challenge</h2>Rising shop prices risk complicating the Bank of England’s battle to tame inflation. Overall, UK consumer price inflation, which covers costs ranging from housing and energy to transport, stood at 3.4 per cent in May, up from 2.6 per cent in March, as reported by Bloomberg citing the Office for National Statistics.&nbsp;Despite these challenges, central bank officials remain confident they can bring inflation back to the 2 per cent target by early 2027. Higher interest rates are seen as working to cool demand, while a weakening jobs market may reduce upward wage pressures. However, persistent food price inflation remains a key risk.<h2>Consumer spending fears</h2>Retail analysts warn that further price rises could hit consumer demand in the months ahead. Matt Watkins, head of retailer and business insight at NielsenIQ, which compiled the shop pricing data for the BRC told Bloomberg that “rising prices could become a concern if consumer willingness to spend declines later in the year.”&nbsp;With households already grappling with higher mortgage payments, energy costs and broader inflation, continued food price hikes could undermine consumer confidence and pose a threat to Britain’s fragile economic recovery.&nbsp;(With inputs from the agencies)&nbsp;

Britain retailers face renewed cost pressures from government policy, global disruptions, and climate impacts, fueling shop price inflation and challenging both households and the Bank of England economic goals.

Britain’s shoppers are feeling the squeeze again, with shop prices rising for the first time in nearly a year. Supermarkets in particular are under pressure from higher taxes, wage increases and soaring wholesale food costs driven by global disruptions, according to data reported by Bloomberg. First rise in shop inflation in nearly a year Shop price inflation in the UK turned positive in June, rising by 0.4 per cent year-on-year after showing a slight decline of 0.1 per cent in May, as per the British Retail Consortium (BRC). This marks the first annual increase since mid-2023, signalling renewed price pressures in the retail sector. Bloomberg reported that the main driver was food price inflation, which jumped by 3.7 per cent, the fastest annual pace since March 2024. The BRC warned this reflected both domestic policy changes and broader global trends pushing up costs for retailers. Higher taxes and wages squeeze retailers Retailers point to the UK government’s latest revenue-raising measures as a key cause of rising costs. Bloomberg notes that Chancellor Jeremy Hunt’s budget included a 6.7 per cent rise in the national minimum wage and a £26 billion increase in payroll taxes, both of which took effect in April. The BRC argued these policies have significantly raised operating expenses just as retailers are battling higher wholesale food prices, driven by geopolitical tensions disrupting supply chains and the effects of climate change on agricultural yields. Helen Dickinson, chief executive of the BRC, urged the government to step in. “The government must find ways to alleviate the cost pressures bearing down on retailers,” she said, as quoted by Bloomberg. Weather worsens food price inflation Climate factors are also playing a role in driving prices higher. According to Bloomberg, the BRC warned that hot, dry weather is reducing yields for fruits and vegetables, adding further upward pressure on supermarket prices. While non-food prices continued to decline overall, they did so at the slowest pace since July 2023, offering little relief to consumers already contending with higher bills for essentials. Bank of England faces tough challenge Rising shop prices risk complicating the Bank of England’s battle to tame inflation. Overall, UK consumer price inflation, which covers costs ranging from housing and energy to transport, stood at 3.4 per cent in May, up from 2.6 per cent in March, as reported by Bloomberg citing the Office for National Statistics. Despite these challenges, central bank officials remain confident they can bring inflation back to the 2 per cent target by early 2027. Higher interest rates are seen as working to cool demand, while a weakening jobs market may reduce upward wage pressures. However, persistent food price inflation remains a key risk. Consumer spending fears Retail analysts warn that further price rises could hit consumer demand in the months ahead. Matt Watkins, head of retailer and business insight at NielsenIQ, which compiled the shop pricing data for the BRC told Bloomberg that “rising prices could become a concern if consumer willingness to spend declines later in the year.” With households already grappling with higher mortgage payments, energy costs and broader inflation, continued food price hikes could undermine consumer confidence and pose a threat to Britain’s fragile economic recovery. (With inputs from the agencies)

UK shop prices rose for the first time in nearly a year in June, driven by soaring food costs, higher taxes, and wage hikes, sparking concerns over inflation and consumer spending.

UK shop prices climb as supermarkets face tax hikes and food cost surge

The US dollar has posted its worst first-half performance in more than 50 years, hit by President Donald Trump’s aggressive tariff policies, investor fears over rising national debt, and bets on Federal Reserve rate cuts. According to Bloomberg and The Guardian, the US Dollar Index fell 10.8 per cent in the first six months of 2025, a slump unmatched since 1973.<h2>Dollar index dives amid policy uncertainty</h2>The US Dollar Index, which measures the greenback against a basket of major currencies, has dropped to its lowest level since March 2022. The scale of this year’s decline rivals the 14.8 per cent plunge in the first half of 1973 during Richard Nixon’s presidency. According to Bloomberg, traders have been spooked by Trump’s surprise “Liberation Day” tariff hikes in April. The policy, aimed at extracting concessions from China, Mexico and Canada, triggered a sharp sell-off in dollar assets and prompted fears of a global trade war.&nbsp;Although the White House paused some tariffs for 90 days under pressure from investors, uncertainty remains high. Analysts say the repeated tariff threats have undermined confidence in the dollar as a safe-haven currency, while worries about the US fiscal outlook are adding to the strain.&nbsp;Here’s a snapshot illustrating how severe the 2025 slump has been in historical context:

<figure class="table"><table><tbody><tr><td>Year</td><td>First-Half Dollar Index Change (%)</td></tr><tr><td>1973</td><td>-14.8</td></tr><tr><td>2025</td><td>-10.8</td></tr><tr><td>Typical Range (Recent Decades)</td><td>-1 to +5</td></tr></tbody></table></figure>Source: Guardian graphic, data from LSEG

This graphic highlight that outside of crisis years like 1973, the dollar typically moves within a far narrower band in the first half of the year. The 2025 slump is one of the largest moves in over five decades, underlining just how severely investor sentiment has been shaken.<h2>Rate-cut expectations deepen dollar weakness</h2>As reported by Bloomberg, traders are increasingly convinced that the Federal Reserve will have to cut interest rates to counter weaker growth. President Trump has repeatedly attacked the Fed for not cutting fast enough and has suggested he might replace Chair Jerome Powell with someone more dovish.&nbsp;Markets are pricing in multiple rate reductions over the coming year. Lower rates reduce the yield on dollar-denominated assets, making the currency less attractive to global investors.<h2>Investors rotate away from US assets</h2>According to The Guardian, the dollar’s decline has been matched by strength in rival currencies. Sterling has risen to a three-year high of $1.37, while the euro is up around 5 per cent so far this year.This reflects a broader rotation out of US assets amid worries about the country’s ballooning debt and unpredictable trade policy. Trump’s expansive budget plans, described as the “big beautiful” budget, are expected to push borrowing even higher, fuelling further doubts about the dollar’s long-term stability.<h2>US stock markets rebound despite tariff shock</h2>Despite the dollar’s slump and an early-year sell-off, US equity markets have bounced back. The April tariff announcement led to the sharpest equity correction since the pandemic, with the S&amp;P 500 tumbling more than 10 per cent in just two days.&nbsp;Bloomberg reports that this volatility was quickly reversed once tariffs were paused and strong earnings, particularly from AI-focused firms, supported sentiment. By the end of June, the S&amp;P 500 had regained ground to post a 5 per cent gain for the year, though it still lagged key European indices.<h2>Europe and UK outperform</h2>As detailed in The Guardian, European markets have outpaced Wall Street. The pan-European Stoxx 600 index rose 7 per cent in the first half of 2025, the UK’s FTSE 100 gained 7.2 per cent, and Germany’s Dax surged 20 per cent, making Europe one of the best-performing regions globally.&nbsp;Investment analysts note that tariffs, earnings downgrades, geopolitical conflicts, and fears over US debt have prompted a shift in investor preferences, reducing America’s dominance in global portfolios.<h2>Winners and losers among sectors</h2>Technology stocks have seen diverging fortunes. Meta Platforms, Facebook’s owner, has soared 25 per cent on AI optimism, while Apple has lost nearly 20 per cent amid concerns about tariffs on Chinese imports and fears it has fallen behind in the AI race.&nbsp;Meanwhile, safe-haven assets have benefited. Gold prices have jumped 25 per cent in 2025 so far, as investors seek protection against market volatility and policy uncertainty.<h2>The road ahead for the dollar</h2>With Trump’s tariff threats still hanging over trade partners, ongoing geopolitical tensions, and questions about the Federal Reserve’s path, analysts warn that the greenback could face further turbulence in the second half of 2025.&nbsp;While US stocks have shown resilience, the dollar’s worst first-half slump in over 50 years underscores the deep anxiety about America’s economic direction and its traditional role as the world’s reserve currency. &nbsp;(With inputs from the agencies) &nbsp;

With a 10.8% plunge in H1 2025, the US Dollar Index faces its worst start in over 50 years, driven by tariff tensions, fiscal instability, and fading investor confidence in America economic policy direction.

The US dollar has posted its worst first-half performance in more than 50 years, hit by President Donald Trump’s aggressive tariff policies, investor fears over rising national debt, and bets on Federal Reserve rate cuts. According to Bloomberg and The Guardian, the US Dollar Index fell 10.8 per cent in the first six months of 2025, a slump unmatched since 1973. Dollar index dives amid policy uncertainty The US Dollar Index, which measures the greenback against a basket of major currencies, has dropped to its lowest level since March 2022. The scale of this year’s decline rivals the 14.8 per cent plunge in the first half of 1973 during Richard Nixon’s presidency. According to Bloomberg, traders have been spooked by Trump’s surprise “Liberation Day” tariff hikes in April. The policy, aimed at extracting concessions from China, Mexico and Canada, triggered a sharp sell-off in dollar assets and prompted fears of a global trade war. Although the White House paused some tariffs for 90 days under pressure from investors, uncertainty remains high. Analysts say the repeated tariff threats have undermined confidence in the dollar as a safe-haven currency, while worries about the US fiscal outlook are adding to the strain. Here’s a snapshot illustrating how severe the 2025 slump has been in historical context:

The US dollar has suffered its steepest first-half drop since 1973, shaken by Trump’s tariff shocks, debt concerns, and expectations of Fed rate cuts.

Dollar slumps to 50-year low as Trump’s tariffs, Fed rift rattle markets

US President Donald Trump has turned up the heat on trade talks with Japan, threatening sharply higher tariffs unless Tokyo makes new concessions on American exports. His remarks come as a crucial July 9 deadline approaches, raising fears of an escalation that could impact everything from rice to cars.<h2>Trump complains about Japan’s rice imports</h2>In a social media post on Monday, Trump criticised Japan’s reluctance to import American-grown rice despite what he called a “massive rice shortage” in the country. Writing on his Truth Social platform, he accused trading partners of becoming “spoiled” when dealing with the United States.&nbsp;“I have great respect for Japan, they won’t take our RICE, and yet they have a massive rice shortage,” Trump said. He also indicated his administration would soon be sending formal notices to partners about the planned tariff increases, as per Reuters. This latest outburst follows his Sunday comments, in which he accused Japan of “unfair” trade practices in the automobile sector. Such remarks have become a hallmark of Trump’s second-term trade strategy, marked by tough rhetoric and an emphasis on what he calls fairer terms for American producers.<h2>July 9 deadline looms for tariff hike</h2>Trump’s administration had earlier imposed a temporary 10 per cent tariff rate on a broad range of imports. But those rates are set to snap back to much higher levels, between 11 and 50 per cent on 9 July if no new deals are finalised. Treasury Secretary Scott Bessent told Bloomberg Television that the White House would notify countries of these higher rates if negotiations stalled. He acknowledged that some countries were bargaining in good faith but insisted the threat of tariffs was needed to maintain pressure.&nbsp;“We have countries that are negotiating in good faith, but they should be aware that if we can’t get across the line because they are being recalcitrant, then we could spring back to the April 2 levels. I hope that won’t have to happen,” Bessent said, as quoted by Reuters. Despite the tough talk, Bessent has hinted at flexibility. Earlier this month he floated the idea of extending the deadline for countries actively negotiating with Washington, although he emphasised only Trump would make that call.<h2>Japan warns of impact on its auto industry</h2>Japan’s main trade negotiator, Ryosei Akazawa, signalled on Monday that Tokyo was committed to continuing discussions with Washington while protecting its own interests. He specifically warned that the resumption of Trump’s 25 per cent tariff on Japanese autos would deal a serious blow to Japan’s economy.&nbsp;“We will continue working with the US to reach a trade agreement while defending Japan’s national interest,” Akazawa said, as per Reuters. Autos remain one of the most sensitive sectors in US-Japan trade, with past negotiations frequently bogging down over market access and tariff rates.<h2>EU eyes deal to avoid steep tariffs</h2>While Japan faces tough demands, another major US trading partner, the European Union, is also trying to navigate the looming tariff threat. According to Bloomberg News, the EU is willing to accept a 10 per cent baseline tariff on its exports to the US in exchange for American commitments to lower tariffs in key industries such as pharmaceuticals, alcohol, semiconductors, and commercial aircraft.&nbsp;Reuters reported that European officials are increasingly resigned to this 10 per cent level as the baseline for any reciprocal deal. The UK previously agreed to similar terms, securing tariff stability on autos while gaining special access for aircraft engines and beef.<h2>A familiar hardline Trump strategy</h2>Trump’s latest trade offensive echoes his first-term approach: using the threat of tariffs to force concessions from allies and rivals alike. While his administration says it is simply fighting for American workers and producers, critics warn the strategy risks destabilising trade flows and hurting key industries on both sides.&nbsp;As the 9 July deadline approaches, trading partners will be under pressure to strike last-minute deals. The outcome will likely define the next phase of America’s complex trade relationships and could have significant implications for global supply chains, prices, and diplomatic ties.&nbsp;(With inputs from the agencies) &nbsp;

As Trump threatens steep tariff hikes on Japan and the EU, global trade tensions rise; key sectors like autos and agriculture hang in the balance with major deals at stake before the looming July 9 cutoff.

US President Donald Trump has turned up the heat on trade talks with Japan, threatening sharply higher tariffs unless Tokyo makes new concessions on American exports. His remarks come as a crucial July 9 deadline approaches, raising fears of an escalation that could impact everything from rice to cars. Trump complains about Japan’s rice imports In a social media post on Monday, Trump criticised Japan’s reluctance to import American-grown rice despite what he called a “massive rice shortage” in the country. Writing on his Truth Social platform, he accused trading partners of becoming “spoiled” when dealing with the United States. “I have great respect for Japan, they won’t take our RICE, and yet they have a massive rice shortage,” Trump said. He also indicated his administration would soon be sending formal notices to partners about the planned tariff increases, as per Reuters. This latest outburst follows his Sunday comments, in which he accused Japan of “unfair” trade practices in the automobile sector. Such remarks have become a hallmark of Trump’s second-term trade strategy, marked by tough rhetoric and an emphasis on what he calls fairer terms for American producers. July 9 deadline looms for tariff hike Trump’s administration had earlier imposed a temporary 10 per cent tariff rate on a broad range of imports. But those rates are set to snap back to much higher levels, between 11 and 50 per cent on 9 July if no new deals are finalised. Treasury Secretary Scott Bessent told Bloomberg Television that the White House would notify countries of these higher rates if negotiations stalled. He acknowledged that some countries were bargaining in good faith but insisted the threat of tariffs was needed to maintain pressure. “We have countries that are negotiating in good faith, but they should be aware that if we can’t get across the line because they are being recalcitrant, then we could spring back to the April 2 levels. I hope that won’t have to happen,” Bessent said, as quoted by Reuters. Despite the tough talk, Bessent has hinted at flexibility. Earlier this month he floated the idea of extending the deadline for countries actively negotiating with Washington, although he emphasised only Trump would make that call. Japan warns of impact on its auto industry Japan’s main trade negotiator, Ryosei Akazawa, signalled on Monday that Tokyo was committed to continuing discussions with Washington while protecting its own interests. He specifically warned that the resumption of Trump’s 25 per cent tariff on Japanese autos would deal a serious blow to Japan’s economy. “We will continue working with the US to reach a trade agreement while defending Japan’s national interest,” Akazawa said, as per Reuters. Autos remain one of the most sensitive sectors in US-Japan trade, with past negotiations frequently bogging down over market access and tariff rates. EU eyes deal to avoid steep tariffs While Japan faces tough demands, another major US trading partner, the European Union, is also trying to navigate the looming tariff threat. According to Bloomberg News, the EU is willing to accept a 10 per cent baseline tariff on its exports to the US in exchange for American commitments to lower tariffs in key industries such as pharmaceuticals, alcohol, semiconductors, and commercial aircraft. Reuters reported that European officials are increasingly resigned to this 10 per cent level as the baseline for any reciprocal deal. The UK previously agreed to similar terms, securing tariff stability on autos while gaining special access for aircraft engines and beef. A familiar hardline Trump strategy Trump’s latest trade offensive echoes his first-term approach: using the threat of tariffs to force concessions from allies and rivals alike. While his administration says it is simply fighting for American workers and producers, critics warn the strategy risks destabilising trade flows and hurting key industries on both sides. As the 9 July deadline approaches, trading partners will be under pressure to strike last-minute deals. The outcome will likely define the next phase of America’s complex trade relationships and could have significant implications for global supply chains, prices, and diplomatic ties. (With inputs from the agencies)

Trump escalates trade pressure on Japan with tariff threats over rice and cars ahead of a critical July 9 deadline, signaling a return to hardline trade tactics.

Trump threatens higher tariffs as US-Japan trade row deepens

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

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

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

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

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

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

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

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

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

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

South Korea is urging the United States to strike a “mutually beneficial” trade deal, as tensions rise over looming tariffs that could hit key Korean exports. During his first official trip to Washington this week, South Korea’s new trade minister, Yeo Han-koo, pushed for a broader, forward-looking agreement. As per Bloomberg, Yeo met US Commerce Secretary Howard Lutnick, Trade Representative Jamieson Greer, Interior Secretary Doug Burgum, and US lawmakers. The high-stakes meetings come ahead of a 9 July deadline when higher tariffs paused in April could be reinstated.<h2>Turning crisis into opportunity</h2>In a statement released on Saturday, South Korea’s Trade Ministry shared Yeo’s message of cooperation “The ongoing negotiations are not merely for tariffs but also an opportunity to establish a new framework for future cooperation,” Yeo said in a statement as quoted by Bloomberg.&nbsp;He promised to “fiercely engage” in talks to ensure that momentum for collaboration between Seoul and Washington isn’t lost. Yeo framed the discussions as a chance to turn the “current crisis into an opportunity,” as per Bloomberg.<h2>South Korea’s trade dependency on the US</h2>South Korea and the US share a deeply interdependent trade relationship. The United States is South Korea’s second-largest export market, buying goods ranging from cars to semiconductors and batteries. These products are critical for South Korea’s economy and vital to US manufacturing supply chains.&nbsp;Meanwhile, South Korea is a key US ally in East Asia, offering advanced manufacturing capacity, cutting-edge tech development, and strategic security cooperation. Any significant increase in US tariffs would hit South Korean exporters hard. The country’s economy is already feeling the pinch from slowing domestic consumption. The Bank of Korea last month slashed its 2025 GDP growth forecast to just 0.8 per cent from 1.5 per cent, underlining the risk of further economic stress.<h2>Industry concerns over US export controls</h2>Beyond tariffs, Yeo also raised industry worries about tightening US export controls. Washington has been imposing stricter rules on technology transfers, especially to countries like China, in an effort to secure critical tech supply chains and limit military applications.South Korean companies heavily involved in semiconductor production and advanced manufacturing, fear they could get caught in the crossfire.<h2>US says talks underway with multiple nations</h2>As per Bloomberg, US Commerce Secretary Howard Lutnick confirmed Washington is working to finalise trade deals with around 10 countries ahead of the July 9 deadline. Speaking on Bloomberg Television, Lutnick said that President Donald Trump might extend the deadline if talks progress, but he did not specify which nations were involved.Negotiating partners will get a “response,” he said, offering some hope of flexibility. But as per Yonhap News, a senior South Korean official in Washington made clear that Seoul has not received any notification of an extension, saying the country is not yet in a position to “feel assured.”<h2>Tariffs risk harming a vital partnership</h2>For both sides, the stakes are high. South Korea is not only a top trade partner but also a major hub for critical industries, including electric vehicle batteries, semiconductors, and automotive manufacturing. A 25 per cent across-the-board tariff would risk disrupting global supply chains, push up costs for US manufacturers, and worsen inflation pressures. Seoul’s push for a new deal isn’t just about avoiding immediate pain. It’s also about defining a modern trade framework that strengthens the alliance in the face of rising global competition, particularly from China.&nbsp;As negotiations continue, all eyes will be on Washington to see if a last-minute deal can keep the trade partnership on track.&nbsp;(With inputs from the agencies)&nbsp;

Trade Minister Yeo Han-koo met with US officials, highlighting the urgency as a July 9 deadline approaches for potential tariff reinstatements. Yeo emphasized using negotiations to create a new framework for cooperation and turning the current crisis into an opportunity.

South Korea is urging the United States to strike a “mutually beneficial” trade deal, as tensions rise over looming tariffs that could hit key Korean exports. During his first official trip to Washington this week, South Korea’s new trade minister, Yeo Han-koo, pushed for a broader, forward-looking agreement. As per Bloomberg, Yeo met US Commerce Secretary Howard Lutnick, Trade Representative Jamieson Greer, Interior Secretary Doug Burgum, and US lawmakers. The high-stakes meetings come ahead of a 9 July deadline when higher tariffs paused in April could be reinstated. Turning crisis into opportunity In a statement released on Saturday, South Korea’s Trade Ministry shared Yeo’s message of cooperation “The ongoing negotiations are not merely for tariffs but also an opportunity to establish a new framework for future cooperation,” Yeo said in a statement as quoted by Bloomberg. He promised to “fiercely engage” in talks to ensure that momentum for collaboration between Seoul and Washington isn’t lost. Yeo framed the discussions as a chance to turn the “current crisis into an opportunity,” as per Bloomberg. South Korea’s trade dependency on the US South Korea and the US share a deeply interdependent trade relationship. The United States is South Korea’s second-largest export market, buying goods ranging from cars to semiconductors and batteries. These products are critical for South Korea’s economy and vital to US manufacturing supply chains. Meanwhile, South Korea is a key US ally in East Asia, offering advanced manufacturing capacity, cutting-edge tech development, and strategic security cooperation. Any significant increase in US tariffs would hit South Korean exporters hard. The country’s economy is already feeling the pinch from slowing domestic consumption. The Bank of Korea last month slashed its 2025 GDP growth forecast to just 0.8 per cent from 1.5 per cent, underlining the risk of further economic stress. Industry concerns over US export controls Beyond tariffs, Yeo also raised industry worries about tightening US export controls. Washington has been imposing stricter rules on technology transfers, especially to countries like China, in an effort to secure critical tech supply chains and limit military applications. South Korean companies heavily involved in semiconductor production and advanced manufacturing, fear they could get caught in the crossfire. US says talks underway with multiple nations As per Bloomberg, US Commerce Secretary Howard Lutnick confirmed Washington is working to finalise trade deals with around 10 countries ahead of the July 9 deadline. Speaking on Bloomberg Television, Lutnick said that President Donald Trump might extend the deadline if talks progress, but he did not specify which nations were involved. Negotiating partners will get a “response,” he said, offering some hope of flexibility. But as per Yonhap News, a senior South Korean official in Washington made clear that Seoul has not received any notification of an extension, saying the country is not yet in a position to “feel assured.” Tariffs risk harming a vital partnership For both sides, the stakes are high. South Korea is not only a top trade partner but also a major hub for critical industries, including electric vehicle batteries, semiconductors, and automotive manufacturing. A 25 per cent across-the-board tariff would risk disrupting global supply chains, push up costs for US manufacturers, and worsen inflation pressures. Seoul’s push for a new deal isn’t just about avoiding immediate pain. It’s also about defining a modern trade framework that strengthens the alliance in the face of rising global competition, particularly from China. As negotiations continue, all eyes will be on Washington to see if a last-minute deal can keep the trade partnership on track. (With inputs from the agencies)

South Korea is advocating for a "mutually beneficial" trade deal with the US amid rising tariff threats on key exports.

South Korea urges for 'mutually beneficial' trade deal with US to avert tariff threat

China today announced it had “confirmed details” of a trade deal with the United States, signalling a potential pause in months of spiralling tariffs, export controls and diplomatic recriminations.&nbsp;Beijing’s Commerce Ministry said on 27 June that both sides had agreed to lift certain “restrictive measures” while China would “review and approve” controlled export items. “It is hoped that the United States and China will meet each other halfway,” the ministry added, calling for “healthy, stable and sustainable development” of trade ties. This statement followed US President Donald Trump’s reveal at the White House on 26 June, where he declared the deal “done”—though neither side released full details, and the White House described negotiations as “ongoing but constructive.” Markets rose on hopes the worst escalation could be avoided.&nbsp;Below is a detailed timeline of the 2025 trade conflict, showing how the world’s two largest economies veered toward a damaging trade war before scrambling for a deal.<h2>February–March 2025: Trump revives tariff threats</h2>6 February 2025: At a rally speech, President Trump vowed “across-the-board” 60 per cent tariffs on all Chinese imports if talks failed. As per Reuters, he accused Beijing of “decades of cheating” and promised to restore US manufacturing.&nbsp;14 February 2025: The Office of the US Trade Representative (USTR) launched a formal review of Section 301 tariffs, aiming to hike rates on key consumer goods like electronics and toys by mid-year, as per Bloomberg.&nbsp;20 February 2025: China’s Ministry of Commerce warned of “strong countermeasures,” signalling it could target US agricultural exports or impose licensing restrictions on critical minerals.&nbsp;2 March 2025: Trump reiterated the tariff plan at CPAC, saying “China will pay” and promising final action by summer, as per Time Magazine.<h2>April 2025: Tech war and tariff escalation</h2>2 April 2025: Trump formally imposed a blanket 10 per cent tariff on all Chinese imports, scrapping the de minimis exemption for small parcels, arguing e-commerce routes were used to funnel fentanyl into the US, as per Reuters.&nbsp;4 April 2025: The US expanded export controls on Chinese AI chip firms, closing licensing “loopholes” for Nvidia’s advanced accelerators&nbsp;&nbsp;4 April 2025: China retaliated with 34 per cent duties and imposed export restrictions on rare earth minerals essential for electronics, EVs, and defence. As per Reuters, these moves threatened to choke US tech and defence supply chains.&nbsp;9 April 2025: Trump dramatically escalated tariffs to 145 per cent on Chinese imports, branding it “Liberation Day” in a proclamation meant to signal economic independence.&nbsp;10 April 2025: China filed a formal WTO complaint, accusing Washington of “economic coercion” and “unilateral bullying," as per Reuters.&nbsp;19 April 2025: Bloomberg reported the US prepared even tighter controls on lithography tools and chipmaking software.&nbsp;23 April 2025: China announced expanded export licensing rules on gallium and germanium products, slowing global supply chains, as per Reuters.<h2>May 2025: A fragile Geneva truce, then new clashes</h2>12 May 2025: At WTO-brokered talks in Geneva, both sides agreed to lower tariffs temporarily (US to 30 per cent, China to 10 per cent) in a fragile 90-day truce.But tensions soon resurfaced:&nbsp;29 May 2025: The US imposed new export curbs on AI chips, semiconductor design software, and specialty chemicals, citing national security risks.&nbsp;&nbsp;30 May 2025: Trump accused China of breaching the Geneva truce and threatened further escalation.<h2>June 2025: Threats, negotiations, and a partial deal</h2>2 June 2025: Beijing dismissed Trump’s claims as “groundless” and vowed “forceful countermeasures,” with Reuters reporting fears of a new tariff wave.&nbsp;3 June 2025: US Treasury Secretary met China’s Vice Premier in Singapore to “restart communication channels,” but talks ended with both sides restating hardline positions, as per Reuters.&nbsp;9–10 June 2025: High-level US and Chinese negotiators held marathon talks in London aiming to finalise the Geneva framework. According to Reuters, officials described the sessions as “putting meat on the bones” of the May truce, trying to lock in details on tariff reductions, tech restrictions, and rare earth shipments.&nbsp;10 June 2025: The US Commerce Department blacklisted two more Chinese AI firms for alleged military links. China condemned the move as “illegal sanctions," as per Bloomberg.&nbsp;11 June 2025: Following the London talks, Trump said that the US had secured concessions on rare earth exports and other sticking points. As quoted by CNBC, he told the audience: “We made a great deal with China. We’re very happy with it. And hopefully they are too.”&nbsp;17 June 2025: Chinese state media reported “progress” in backchannel discussions. The US refused to confirm any deal, underscoring deep mistrust.&nbsp;20 June 2025: Reuters reported Trump advisors were weighing delaying the 60 per cent tariff implementation by one month to allow “final deal talks.”<h2>26–27 June 2025: Two announcements, no full details</h2>26 June 2025: Trump declared at the White House that the deal was “done,” saying the US had secured partial tariff rollbacks, Chinese pledges to buy American farm goods, and promises to ease certain tech curbs. However, no full text was released, and the White House described negotiations as “ongoing but constructive", as per Reuters.&nbsp;27 June 2025: China’s Ministry of Commerce announced it had “confirmed details” of the deal, saying Washington would lift “restrictive measures” while Beijing would “review and approve” export-controlled items. The statement called for “healthy, stable and sustainable development” in China-US economic relations, as per Reuters.<h2>What lies ahead?</h2>Despite these announcements, analysts warn the underlying tensions are far from resolved. Issues such as technology transfer restrictions, intellectual property enforcement, and China’s industrial policy remain persistent sticking points.&nbsp;According to Bloomberg, US manufacturers are accelerating supply chain diversification away from China, while Beijing is pushing its self-reliance strategy. For now, the “confirmed details” of this deal may pause the immediate tariff threats, but the fundamental drivers of the trade war remain in place, promising further rounds of confrontation even if this fragile truce holds.&nbsp;(With inputs from the agencies)&nbsp;

This followed US President Trump declaration of the deal being, although full details were not disclosed, with negotiations described as ongoing. 

China today announced it had “confirmed details” of a trade deal with the United States, signalling a potential pause in months of spiralling tariffs, export controls and diplomatic recriminations. Beijing’s Commerce Ministry said on 27 June that both sides had agreed to lift certain “restrictive measures” while China would “review and approve” controlled export items. “It is hoped that the United States and China will meet each other halfway,” the ministry added, calling for “healthy, stable and sustainable development” of trade ties. This statement followed US President Donald Trump’s reveal at the White House on 26 June, where he declared the deal “done”—though neither side released full details, and the White House described negotiations as “ongoing but constructive.” Markets rose on hopes the worst escalation could be avoided. Below is a detailed timeline of the 2025 trade conflict, showing how the world’s two largest economies veered toward a damaging trade war before scrambling for a deal. February–March 2025: Trump revives tariff threats 6 February 2025: At a rally speech, President Trump vowed “across-the-board” 60 per cent tariffs on all Chinese imports if talks failed. As per Reuters, he accused Beijing of “decades of cheating” and promised to restore US manufacturing. 14 February 2025: The Office of the US Trade Representative (USTR) launched a formal review of Section 301 tariffs, aiming to hike rates on key consumer goods like electronics and toys by mid-year, as per Bloomberg. 20 February 2025: China’s Ministry of Commerce warned of “strong countermeasures,” signalling it could target US agricultural exports or impose licensing restrictions on critical minerals. 2 March 2025: Trump reiterated the tariff plan at CPAC, saying “China will pay” and promising final action by summer, as per Time Magazine. April 2025: Tech war and tariff escalation 2 April 2025: Trump formally imposed a blanket 10 per cent tariff on all Chinese imports, scrapping the de minimis exemption for small parcels, arguing e-commerce routes were used to funnel fentanyl into the US, as per Reuters. 4 April 2025: The US expanded export controls on Chinese AI chip firms, closing licensing “loopholes” for Nvidia’s advanced accelerators 4 April 2025: China retaliated with 34 per cent duties and imposed export restrictions on rare earth minerals essential for electronics, EVs, and defence. As per Reuters, these moves threatened to choke US tech and defence supply chains. 9 April 2025: Trump dramatically escalated tariffs to 145 per cent on Chinese imports, branding it “Liberation Day” in a proclamation meant to signal economic independence. 10 April 2025: China filed a formal WTO complaint, accusing Washington of “economic coercion” and “unilateral bullying," as per Reuters. 19 April 2025: Bloomberg reported the US prepared even tighter controls on lithography tools and chipmaking software. 23 April 2025: China announced expanded export licensing rules on gallium and germanium products, slowing global supply chains, as per Reuters. May 2025: A fragile Geneva truce, then new clashes 12 May 2025: At WTO-brokered talks in Geneva, both sides agreed to lower tariffs temporarily (US to 30 per cent, China to 10 per cent) in a fragile 90-day truce. But tensions soon resurfaced: 29 May 2025: The US imposed new export curbs on AI chips, semiconductor design software, and specialty chemicals, citing national security risks. 30 May 2025: Trump accused China of breaching the Geneva truce and threatened further escalation. June 2025: Threats, negotiations, and a partial deal 2 June 2025: Beijing dismissed Trump’s claims as “groundless” and vowed “forceful countermeasures,” with Reuters reporting fears of a new tariff wave. 3 June 2025: US Treasury Secretary met China’s Vice Premier in Singapore to “restart communication channels,” but talks ended with both sides restating hardline positions, as per Reuters. 9–10 June 2025: High-level US and Chinese negotiators held marathon talks in London aiming to finalise the Geneva framework. According to Reuters, officials described the sessions as “putting meat on the bones” of the May truce, trying to lock in details on tariff reductions, tech restrictions, and rare earth shipments. 10 June 2025: The US Commerce Department blacklisted two more Chinese AI firms for alleged military links. China condemned the move as “illegal sanctions," as per Bloomberg. 11 June 2025: Following the London talks, Trump said that the US had secured concessions on rare earth exports and other sticking points. As quoted by CNBC, he told the audience: “We made a great deal with China. We’re very happy with it. And hopefully they are too.” 17 June 2025: Chinese state media reported “progress” in backchannel discussions. The US refused to confirm any deal, underscoring deep mistrust. 20 June 2025: Reuters reported Trump advisors were weighing delaying the 60 per cent tariff implementation by one month to allow “final deal talks.” 26–27 June 2025: Two announcements, no full details 26 June 2025: Trump declared at the White House that the deal was “done,” saying the US had secured partial tariff rollbacks, Chinese pledges to buy American farm goods, and promises to ease certain tech curbs. However, no full text was released, and the White House described negotiations as “ongoing but constructive", as per Reuters. 27 June 2025: China’s Ministry of Commerce announced it had “confirmed details” of the deal, saying Washington would lift “restrictive measures” while Beijing would “review and approve” export-controlled items. The statement called for “healthy, stable and sustainable development” in China-US economic relations, as per Reuters. What lies ahead? Despite these announcements, analysts warn the underlying tensions are far from resolved. Issues such as technology transfer restrictions, intellectual property enforcement, and China’s industrial policy remain persistent sticking points. According to Bloomberg, US manufacturers are accelerating supply chain diversification away from China, while Beijing is pushing its self-reliance strategy. For now, the “confirmed details” of this deal may pause the immediate tariff threats, but the fundamental drivers of the trade war remain in place, promising further rounds of confrontation even if this fragile truce holds. (With inputs from the agencies)

China announced confirmation of a trade deal with the US, suggesting a potential pause in escalating tariffs and controls.

China ‘confirms details’ of trade deal with United States: A timeline of 2025 tensions and talks

US President Donald Trump has fuelled fresh speculation about an imminent “very big” trade deal with India, weeks after top negotiators from both countries wrapped up closed-door talks aimed at slashing tariffs and expanding market access.&nbsp;Speaking at the ‘Big Beautiful Event’ at the White House on Thursday, Trump told supporters: “We just signed with China yesterday. We are having some great deals. We have one coming up, maybe with India. Very big one,” as quoted by Reuters. Trump said the United States would not sign trade deals with every nation indiscriminately. “We’re not going to make deals with everybody. Some we are just going to send them a letter, say thank you very much. You are to pay 25, 35, 45 per cent. That’s the easy way to do it,” he said, emphasising that his team preferred forging substantial bilateral pacts over blanket tariff threats, as reported by Reuters.&nbsp;<h2>High-stakes negotiations target $500 billion trade milestone</h2>The comments follow intensive four-day negotiations held earlier this month between US and Indian trade teams in New Delhi. Talks focused on expanding market access for industrial and agricultural products, tariff reductions, and tackling non-tariff barriers.According to people familiar with the negotiations, the goal is to transform annual bilateral trade from its current level of around $190 billion to $500 billion by 2030, a figure Indian and US officials have cited repeatedly as a shared ambition.&nbsp;Union Commerce and Industry Minister Piyush Goyal said after the latest round of talks: “PM Modi and US President Trump met in February 2025… Both our leaders have decided to enter into a bilateral trade agreement which will be mutually beneficial for both the economies, businesses on both sides and the people of both countries. We are negotiating to make a nice, fair, equitable, and balanced agreement to promote business,” as quoted by Reuters.Earlier this month, US Commerce Secretary Howard Lutnick also signalled optimism that a deal could soon be finalised, saying both sides had found “common ground” to meet their strategic and economic interests, as per Reuters.&nbsp;<h2>India–US trade: A crucial and growing partnership</h2>The United States is India’s single largest trading partner. According to India’s Ministry of Commerce and Industry, bilateral goods and services trade between the two countries reached $191 billion in 2023–24, with Indian exports to the US valued at over $118 billion and imports from the US at around $73 billion.The US accounted for roughly 18 per cent of India’s total exports in 2023–24, making it India’s top export destination. Key Indian exports include pharmaceuticals, textiles, engineering goods, gems and jewellery, and software services.&nbsp;Conversely, the US is a major supplier of crude oil, LNG, advanced machinery, aircraft, defence equipment and agricultural products to India. US energy exports to India alone exceeded $10 billion in 2023, as per the US Energy Information Administration.Trade in services also forms a vital component of the economic relationship, with India’s IT sector providing services worth over $40 billion annually to US clients, according to Nasscom data.&nbsp;Investment ties are similarly robust. US foreign direct investment in India stood at $67 billion as of end-2023, while Indian companies have invested over $40 billion in the US, generating thousands of American jobs.<h2>Talks come amid tariff threats</h2>Trump’s comments also underline the high-stakes backdrop for the negotiations. The US President has threatened to impose tariffs of up to 45 per cent on countries unwilling to strike new trade deals with Washington.&nbsp;While the Biden-era Phase One agreement with India had kept tariff escalation largely at bay, Trump’s second-term approach has seen renewed threats of sweeping duties unless partners sign what he calls “fair and reciprocal” deals.Indian officials see a deal with the US as critical to securing market stability and boosting exports amid a challenging global environment marked by trade fragmentation and geopolitical tensions.&nbsp;For the United States, expanding trade ties with India is seen as a key element of its Indo-Pacific strategy, offering a counterweight to China’s economic influence in the region.<h2>A path forward?</h2>Negotiators from both sides remain tight-lipped about precise timelines or the final shape of any agreement. But Trump’s remarks suggest both governments want to signal progress ahead of their next planned high-level meeting.&nbsp;With India–US trade already on a record-setting trajectory, any new pact will have to address thorny issues ranging from tariff harmonisation to digital trade rules and standards. But if achieved, officials on both sides believe it could cement one of the 21st century’s most consequential economic partnerships.&nbsp;(With inputs from the agencies)&nbsp;

At a White House event, he hinted at a very big agreement on the horizon while emphasizing selective trade partnerships.

US President Donald Trump has fuelled fresh speculation about an imminent “very big” trade deal with India, weeks after top negotiators from both countries wrapped up closed-door talks aimed at slashing tariffs and expanding market access. Speaking at the ‘Big Beautiful Event’ at the White House on Thursday, Trump told supporters: “We just signed with China yesterday. We are having some great deals. We have one coming up, maybe with India. Very big one,” as quoted by Reuters. Trump said the United States would not sign trade deals with every nation indiscriminately. “We’re not going to make deals with everybody. Some we are just going to send them a letter, say thank you very much. You are to pay 25, 35, 45 per cent. That’s the easy way to do it,” he said, emphasising that his team preferred forging substantial bilateral pacts over blanket tariff threats, as reported by Reuters. High-stakes negotiations target $500 billion trade milestone The comments follow intensive four-day negotiations held earlier this month between US and Indian trade teams in New Delhi. Talks focused on expanding market access for industrial and agricultural products, tariff reductions, and tackling non-tariff barriers. According to people familiar with the negotiations, the goal is to transform annual bilateral trade from its current level of around $190 billion to $500 billion by 2030, a figure Indian and US officials have cited repeatedly as a shared ambition. Union Commerce and Industry Minister Piyush Goyal said after the latest round of talks: “PM Modi and US President Trump met in February 2025… Both our leaders have decided to enter into a bilateral trade agreement which will be mutually beneficial for both the economies, businesses on both sides and the people of both countries. We are negotiating to make a nice, fair, equitable, and balanced agreement to promote business,” as quoted by Reuters. Earlier this month, US Commerce Secretary Howard Lutnick also signalled optimism that a deal could soon be finalised, saying both sides had found “common ground” to meet their strategic and economic interests, as per Reuters. India–US trade: A crucial and growing partnership The United States is India’s single largest trading partner. According to India’s Ministry of Commerce and Industry, bilateral goods and services trade between the two countries reached $191 billion in 2023–24, with Indian exports to the US valued at over $118 billion and imports from the US at around $73 billion. The US accounted for roughly 18 per cent of India’s total exports in 2023–24, making it India’s top export destination. Key Indian exports include pharmaceuticals, textiles, engineering goods, gems and jewellery, and software services. Conversely, the US is a major supplier of crude oil, LNG, advanced machinery, aircraft, defence equipment and agricultural products to India. US energy exports to India alone exceeded $10 billion in 2023, as per the US Energy Information Administration. Trade in services also forms a vital component of the economic relationship, with India’s IT sector providing services worth over $40 billion annually to US clients, according to Nasscom data. Investment ties are similarly robust. US foreign direct investment in India stood at $67 billion as of end-2023, while Indian companies have invested over $40 billion in the US, generating thousands of American jobs. Talks come amid tariff threats Trump’s comments also underline the high-stakes backdrop for the negotiations. The US President has threatened to impose tariffs of up to 45 per cent on countries unwilling to strike new trade deals with Washington. While the Biden-era Phase One agreement with India had kept tariff escalation largely at bay, Trump’s second-term approach has seen renewed threats of sweeping duties unless partners sign what he calls “fair and reciprocal” deals. Indian officials see a deal with the US as critical to securing market stability and boosting exports amid a challenging global environment marked by trade fragmentation and geopolitical tensions. For the United States, expanding trade ties with India is seen as a key element of its Indo-Pacific strategy, offering a counterweight to China’s economic influence in the region. A path forward? Negotiators from both sides remain tight-lipped about precise timelines or the final shape of any agreement. But Trump’s remarks suggest both governments want to signal progress ahead of their next planned high-level meeting. With India–US trade already on a record-setting trajectory, any new pact will have to address thorny issues ranging from tariff harmonisation to digital trade rules and standards. But if achieved, officials on both sides believe it could cement one of the 21st century’s most consequential economic partnerships. (With inputs from the agencies)

US President Donald Trump has raised expectations for a significant trade deal with India following recent negotiations aimed at reducing tariffs and improving market access.

US–India trade deal: What’s inside Trump’s “very big” hint?

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