Amid US President Donald Trump's tariffs, the unemployment rate in America has increased, according to the Labour Department report. The US employers have added just 73,000 jobs last month, showing that the hiring was much weaker than reported in past couple of months. The unemployment rate has now ticked up to 4.2 per cent.&nbsp;The weekly report has now raised concerns over the US job market and America's economy as Trump moves forward with a radical trade policy, imposing high tariffs all across the world.&nbsp;In a report issued on Friday, the Labour Department stated that the unemployment rate has surged up to 4.2 per cent this month from 4.1 per cent in June. Moreover, it added that the ranks of unemployed increased by 221,000.&nbsp;The US federal government has lost 12,000 jobs, while jobs in administration and support fell by nearly 20,000.<h2>Democrats react, slam Trump</h2>After the Labour Department issued the report, Democratic lawmakers slammed Trump's “reckless and chaotic” tariff policies and federal cuts.&nbsp;Senate Minority Leader Chuck Schumer shared a post on X, stating that Trump's "reckless and chaotic tariffs are catching up with the economy".&nbsp;"The chickens are coming home to roost for Trump, and American families are paying the price. His reckless and chaotic tariffs and his drastic cuts are catching up with the economy, which means fewer jobs and more people out of work. Trump must end his trade war and reverse his horrible cuts now," he stated.&nbsp;While California Governor Gavin Newsom warned people, "Don't let Donald Trump gaslight you", adding that the US president is crashing our economy.&nbsp;"A July jobs report was way below expectations. May and June were revised down as well. Unemployment rate ticked back up to 4.2%. We haven’t seen conditions like these since 2020. Don’t let Donald Trump gaslight you. He is failing Americans and crashing our economy," he wrote.&nbsp;New York's Governor Kathy Hochul stressed that the US president is killing jobs and " jacking up prices with his tariffs.""Sellout Stefanik calls his leadership a “masterclass,” I call it bullshit. We will fight back," Kathy added.&nbsp;Moreover, Senator Chris Murphy, of Connecticut, called it an "unsurprisingly bad jobs report", saying, “Awful. Companies don’t want to create jobs in Trump’s chaotic economy with weakening rule of law and rampant corruption.”

The weekly report has now raised concerns over the US job market and America's economy as Trump moves forward with a radical trade policy, imposing high tariffs all across the world.

Amid US President Donald Trump's tariffs, the unemployment rate in America has increased, according to the Labour Department report. The US employers have added just 73,000 jobs last month, showing that the hiring was much weaker than reported in past couple of months. The unemployment rate has now ticked up to 4.2 per cent. The weekly report has now raised concerns over the US job market and America's economy as Trump moves forward with a radical trade policy, imposing high tariffs all across the world. In a report issued on Friday, the Labour Department stated that the unemployment rate has surged up to 4.2 per cent this month from 4.1 per cent in June. Moreover, it added that the ranks of unemployed increased by 221,000. The US federal government has lost 12,000 jobs, while jobs in administration and support fell by nearly 20,000. Democrats react, slam Trump After the Labour Department issued the report, Democratic lawmakers slammed Trump's “reckless and chaotic” tariff policies and federal cuts. Senate Minority Leader Chuck Schumer shared a post on X, stating that Trump's "reckless and chaotic tariffs are catching up with the economy". "The chickens are coming home to roost for Trump, and American families are paying the price. His reckless and chaotic tariffs and his drastic cuts are catching up with the economy, which means fewer jobs and more people out of work. Trump must end his trade war and reverse his horrible cuts now," he stated. While California Governor Gavin Newsom warned people, "Don't let Donald Trump gaslight you", adding that the US president is crashing our economy. "A July jobs report was way below expectations. May and June were revised down as well. Unemployment rate ticked back up to 4.2%. We haven’t seen conditions like these since 2020. Don’t let Donald Trump gaslight you. He is failing Americans and crashing our economy," he wrote. New York's Governor Kathy Hochul stressed that the US president is killing jobs and " jacking up prices with his tariffs." "Sellout Stefanik calls his leadership a “masterclass,” I call it bullshit. We will fight back," Kathy added. Moreover, Senator Chris Murphy, of Connecticut, called it an "unsurprisingly bad jobs report", saying, “Awful. Companies don’t want to create jobs in Trump’s chaotic economy with weakening rule of law and rampant corruption.”

The weekly report has now raised concerns over the US job market and America's economy as Trump moves forward with a radical trade policy, imposing high tariffs all across the world.

'Bulls**t! Trump crashing economy': Democrats slam Trump as unemployment rate rises in America amid 'chaotic' tariffs

Donald Trump’s sweeping tariff policy is reportedly now under judicial scrutiny. A federal appeals court case could redefine the limits of presidential power over trade, just as Trump doubles down on fresh import duties. According to a CNN Business report, a group of five small business owners and 12 Democratic-led states are challenging Trump’s use of the International Emergency Economic Powers Act (IEEPA) to justify wide-ranging tariffs. They argue that the 1977 law, designed for genuine national emergencies, doesn’t legally permit the imposition of customs duties.&nbsp;This case could have a significant impact on the legal framework supporting Trump’s recent tariff blitz, including the 10 per cent universal import duties introduced in April, and the steep 50 per cent tariffs now targeting exports from countries like Brazil.<h2>The courtroom clash</h2>Oral arguments began Thursday at the US Court of Appeals for the Federal Circuit. The legal challenge follows a prior ruling from the US Court of International Trade that sided with the plaintiffs but allowed the contested tariffs to remain in place pending appeal. Assistant Attorney General Brett Shumate defended the Trump administration’s position, but as per CNN Business, at least 10 of the 11 judges expressed scepticism over the legality of using IEEPA to justify tariff actions.&nbsp;Judge Jimmie Reyna pointedly asked, “But IEEPA has been rarely used, hasn’t it? It’s been over 50 years since it’s been used?” He further noted, “IEEPA doesn’t even say tariffs, doesn’t even mention them.” Another judge, Raymond Chen, challenged the claim that the US trade deficit constitutes an “extraordinary and unusual threat” that would justify emergency powers, asking: “Can the trade deficit be an extraordinary and unusual threat when we have had trade deficits for decades?”<h2>Why it matters?</h2>Trump has been relying on IEEPA to push a new wave of tariffs targeting China, Mexico, Canada, and most recently Brazil. On Wednesday, the former president used the law to hike tariffs on Brazilian exports by 40 percentage points — from 10 per cent to 50 per cent — citing an economic emergency. Even allies like Japan and the European Union, who signed fresh trade deals with Trump earlier this year are now facing higher tariffs under IEEPA provisions. If the court rules against Trump, the legal foundation of these deals could crumble.&nbsp;JPMorgan analysts warned in a note, “If the IEEPA is deemed inadmissible, the legal status of the trade deals themselves could come into question.," as quoted by CNN Business.&nbsp;<h2>What’s not at stake?</h2>Even if Trump loses this legal battle, it doesn’t mean his tariff machine will grind to a halt.&nbsp;In fact, the former president has also been using other legislative tools, including Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974, to impose targeted duties. For example, Trump used Section 232 to justify a 50 per cent copper tariff this year on national security grounds, which requires a government probe before implementation.&nbsp;Section 301, meanwhile, was the basis for many of Trump’s original tariffs against China and Europe during his first term. Unlike IEEPA-based tariffs, these mechanisms are not being challenged in court.<h2>What comes next?</h2>The appeals court could take weeks, even months to reach a decision. The case may eventually land in the US Supreme Court, introducing more uncertainty into Trump’s trade strategy, even as he continues to threaten new levies unless global partners agree to renegotiated deals.&nbsp;Whether this legal challenge stops him or not, one thing is clear: Trump’s reliance on economic emergencies to justify tariffs is under more scrutiny than ever before.&nbsp;(With inputs from the agencies)

A group of five small business owners and 12 Democratic-led states challenges his use of the International Emergency Economic Powers Act (IEEPA) for implementing tariffs, arguing it does not legally permit customs duties. 

Donald Trump’s sweeping tariff policy is reportedly now under judicial scrutiny. A federal appeals court case could redefine the limits of presidential power over trade, just as Trump doubles down on fresh import duties. According to a CNN Business report, a group of five small business owners and 12 Democratic-led states are challenging Trump’s use of the International Emergency Economic Powers Act (IEEPA) to justify wide-ranging tariffs. They argue that the 1977 law, designed for genuine national emergencies, doesn’t legally permit the imposition of customs duties. This case could have a significant impact on the legal framework supporting Trump’s recent tariff blitz, including the 10 per cent universal import duties introduced in April, and the steep 50 per cent tariffs now targeting exports from countries like Brazil. The courtroom clash Oral arguments began Thursday at the US Court of Appeals for the Federal Circuit. The legal challenge follows a prior ruling from the US Court of International Trade that sided with the plaintiffs but allowed the contested tariffs to remain in place pending appeal. Assistant Attorney General Brett Shumate defended the Trump administration’s position, but as per CNN Business, at least 10 of the 11 judges expressed scepticism over the legality of using IEEPA to justify tariff actions. Judge Jimmie Reyna pointedly asked, “But IEEPA has been rarely used, hasn’t it? It’s been over 50 years since it’s been used?” He further noted, “IEEPA doesn’t even say tariffs, doesn’t even mention them.” Another judge, Raymond Chen, challenged the claim that the US trade deficit constitutes an “extraordinary and unusual threat” that would justify emergency powers, asking: “Can the trade deficit be an extraordinary and unusual threat when we have had trade deficits for decades?” Why it matters? Trump has been relying on IEEPA to push a new wave of tariffs targeting China, Mexico, Canada, and most recently Brazil. On Wednesday, the former president used the law to hike tariffs on Brazilian exports by 40 percentage points — from 10 per cent to 50 per cent — citing an economic emergency. Even allies like Japan and the European Union, who signed fresh trade deals with Trump earlier this year are now facing higher tariffs under IEEPA provisions. If the court rules against Trump, the legal foundation of these deals could crumble. JPMorgan analysts warned in a note, “If the IEEPA is deemed inadmissible, the legal status of the trade deals themselves could come into question.," as quoted by CNN Business. What’s not at stake? Even if Trump loses this legal battle, it doesn’t mean his tariff machine will grind to a halt. In fact, the former president has also been using other legislative tools, including Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974, to impose targeted duties. For example, Trump used Section 232 to justify a 50 per cent copper tariff this year on national security grounds, which requires a government probe before implementation. Section 301, meanwhile, was the basis for many of Trump’s original tariffs against China and Europe during his first term. Unlike IEEPA-based tariffs, these mechanisms are not being challenged in court. What comes next? The appeals court could take weeks, even months to reach a decision. The case may eventually land in the US Supreme Court, introducing more uncertainty into Trump’s trade strategy, even as he continues to threaten new levies unless global partners agree to renegotiated deals. Whether this legal challenge stops him or not, one thing is clear: Trump’s reliance on economic emergencies to justify tariffs is under more scrutiny than ever before. (With inputs from the agencies)

Donald Trump’s tariff policy reportedly faces judicial scrutiny with a federal appeals court case that could redefine presidential trade powers.

Trump’s trade tariffs face key legal test in US court

Luxury fashion’s post-pandemic boom is clearly losing its shine. With LVMH and Kering set to report yet another quarter of declining sales, investor concerns are mounting about a deeper, more structural slowdown in the $400 billion global luxury market.&nbsp;According to analysts surveyed by Visible Alpha, LVMH’s fashion and leather goods division, home to flagship brands Louis Vuitton and Dior is expected to post a 6 per cent year-on-year drop in sales, marking the fourth straight quarterly decline. Kering, which is undergoing a reset of its crown jewel Gucci, is expected to show an even steeper slump, with sales down nearly 25 per cent from a year ago. As luxury houses prepare to release earnings, beginning with LVMH on Thursday, the mood is increasingly cautious.<h2>Tariffs, tightening wallets and China uncertainty</h2>Two major markets, the US and China are no longer delivering the kind of demand luxury brands have long banked on. Shoppers are pulling back in the face of slowing economies, higher prices, and geopolitical tensions. The looming threat of new US tariffs on European imports, as high as 30 per cent under President Donald Trump’s trade agenda is adding more pressure to an already fragile landscape.&nbsp;Raising prices further in the US would be a risky move now, especially after previous hikes appear to have alienated middle-income customers. “The level of price increases has been too much,” said Caroline Reyl, head of premium brands at Pictet Asset Management, pointing to brands that may have pushed too far for too long.&nbsp;The so-called aspirational shopper, middle-income consumers who stretch to afford luxury items has become increasingly price-sensitive, and is now pulling back from handbag purchases, traditionally a key growth driver.<h2>Investors are growing cautious</h2>Shares in top luxury firms reflect this unease. Since January, LVMH shares are down nearly 27 per cent, while Kering has dropped 15 per cent. Hermès and Richemont, which cater to ultra-wealthy clientele, have fared better — Hermès shares dipped just 0.9 per cent, while Richemont gained 1.6 per cent.&nbsp;Once Europe’s most valuable listed company, LVMH has fallen to fifth place, a symbolic slide that underscores investors’ shifting confidence. “It seems that investors are starting to worry about the long-term structural attractiveness of the industry,” analysts at UBS warned last week.<h2>Handbags out, hybrid shoes in?</h2>Luxury brands are now pivoting towards lower-priced offerings and beauty products in an attempt to reignite demand. Louis Vuitton and Prada have introduced more items under the $1,000 mark, such as hybrid ballerina-sneaker shoes, in a bid to stay accessible without diluting brand prestige. But this approach carries reputational risk. Analysts at HSBC cautioned that brand inconsistency could hurt loyalty, particularly at Louis Vuitton. “The aspirational skew of the brand is unhelpful currently,” the bank said.&nbsp;Meanwhile, Hermès and Prada are expected to be the outliers this earnings season. Analysts forecast 10 per cent growth for both, driven by Prada’s Miu Miu label, which has been gaining ground among younger shoppers. LVMH will report earnings on July 25, followed by Kering on July 29, and Hermès and Prada on July 30. Their performance may offer a clearer glimpse into whether the current downturn is a passing phase or a reset for the luxury sector’s post-pandemic highs.&nbsp;&nbsp;(With inputs from the agencies)&nbsp;

Economic pressures, US tariffs, and uncertainties in major markets like the US and China are impacting demand. Investors are cautious, with LVMH shares down 27% this year. Brands are pivoting to lower priced items, though this risks brand integrity.

Luxury fashion’s post-pandemic boom is clearly losing its shine. With LVMH and Kering set to report yet another quarter of declining sales, investor concerns are mounting about a deeper, more structural slowdown in the $400 billion global luxury market. According to analysts surveyed by Visible Alpha, LVMH’s fashion and leather goods division, home to flagship brands Louis Vuitton and Dior is expected to post a 6 per cent year-on-year drop in sales, marking the fourth straight quarterly decline. Kering, which is undergoing a reset of its crown jewel Gucci, is expected to show an even steeper slump, with sales down nearly 25 per cent from a year ago. As luxury houses prepare to release earnings, beginning with LVMH on Thursday, the mood is increasingly cautious. Tariffs, tightening wallets and China uncertainty Two major markets, the US and China are no longer delivering the kind of demand luxury brands have long banked on. Shoppers are pulling back in the face of slowing economies, higher prices, and geopolitical tensions. The looming threat of new US tariffs on European imports, as high as 30 per cent under President Donald Trump’s trade agenda is adding more pressure to an already fragile landscape. Raising prices further in the US would be a risky move now, especially after previous hikes appear to have alienated middle-income customers. “The level of price increases has been too much,” said Caroline Reyl, head of premium brands at Pictet Asset Management, pointing to brands that may have pushed too far for too long. The so-called aspirational shopper, middle-income consumers who stretch to afford luxury items has become increasingly price-sensitive, and is now pulling back from handbag purchases, traditionally a key growth driver. Investors are growing cautious Shares in top luxury firms reflect this unease. Since January, LVMH shares are down nearly 27 per cent, while Kering has dropped 15 per cent. Hermès and Richemont, which cater to ultra-wealthy clientele, have fared better — Hermès shares dipped just 0.9 per cent, while Richemont gained 1.6 per cent. Once Europe’s most valuable listed company, LVMH has fallen to fifth place, a symbolic slide that underscores investors’ shifting confidence. “It seems that investors are starting to worry about the long-term structural attractiveness of the industry,” analysts at UBS warned last week. Handbags out, hybrid shoes in? Luxury brands are now pivoting towards lower-priced offerings and beauty products in an attempt to reignite demand. Louis Vuitton and Prada have introduced more items under the $1,000 mark, such as hybrid ballerina-sneaker shoes, in a bid to stay accessible without diluting brand prestige. But this approach carries reputational risk. Analysts at HSBC cautioned that brand inconsistency could hurt loyalty, particularly at Louis Vuitton. “The aspirational skew of the brand is unhelpful currently,” the bank said. Meanwhile, Hermès and Prada are expected to be the outliers this earnings season. Analysts forecast 10 per cent growth for both, driven by Prada’s Miu Miu label, which has been gaining ground among younger shoppers. LVMH will report earnings on July 25, followed by Kering on July 29, and Hermès and Prada on July 30. Their performance may offer a clearer glimpse into whether the current downturn is a passing phase or a reset for the luxury sector’s post-pandemic highs. (With inputs from the agencies)

Luxury fashion is experiencing a downturn with LVMH and Kering reporting declining sales. LVMH's fashion division anticipates a 6% drop, while Kering may face nearly a 25% slump as they struggle with changing consumer behavior and price sensitivity.

Luxury giants feel the chill as US tariffs, high prices hit demand

On Monday, the Japanese yen remained firm after Prime Minister Shigeru Ishiba’s ruling coalition suffered a historic defeat in upper house elections. This raised fears of possible political instability in the world’s fourth-largest economy. As global markets eyed implications for policy and trade, while Japanese markets were closed for a holiday, the yen became an early signal of investor unease.<h2>Coalition party's defeat setback deepens uncertainty</h2>Japan’s Liberal Democratic Party (LDP) secured only 47 seats in the upper house vote. The LDP is falling short of the 50 seats which is needed for a majority, marking the first time since 1955 that the ruling party lacks control in either legislative chamber. According to Reuters, this adds pressure on Prime Minister Shigeru Ishiba, who had already lost the lower house majority in October.&nbsp;Though the poll result does not automatically end Ishiba’s premiership but it has weakened his position. “PM Ishiba has been defiant in his stance to stay the course… but his hand has been sufficiently weakened,” said Chris Weston, head of research at Pepperstone, as quoted by Reuters.<h2>Yen firms, bonds under pressure</h2>In early Monday trading before soaring some gains, the yen strengthened as much as 0.7 per cent against the US dollar, according to Bloomberg. It traded at 148.32 per dollar, close to last week’s 3.5-month low, and also gained slightly against the euro at 172.64.“Uncertainty usually tends to favour the yen, at least initially,” said Rodrigo Catril, a currency strategist at National Australia Bank in Sydney, as quoted by Bloomberg.&nbsp;However, Japanese government bonds (JGBs) continue to remain volatile. Yields on 30-year debt surged to record highs last week as concerns mounted over the country’s fiscal direction under a weakened government.<h2>All eyes on US tariffs</h2>Markets are also watching how Ishiba navigates potential alliances in parliament. Analysts suggest that one option could be partnering with the centrist Democratic Party for the People (DPP) to secure a working majority. This move can reportedly offer some short-term stability to Ishiba.&nbsp;&nbsp;But all of this is unfolding just as Japan attempts to reach a crucial trade agreement with the US before an August 1 deadline. As per Bloomberg, US President Donald Trump’s tariff stance has hardened, raising the risk of fresh duties on Japanese and European goods. EU envoys are expected to meet this week to prepare for a possible no-deal outcome.<h2>Asian market reaction&nbsp;</h2>Amid growing trade tension outside Japan, Asian markets opened cautiously. Nikkei futures were flat, while US equity futures edged 0.1 per cent higher in early Asia trade. The euro remained stable at $1.1632, while the British pound last traded at $1.1341.&nbsp;Meanwhile, the New Zealand dollar slipped 0.18 per cent to $0.5951 after second-quarter inflation data came in below expectations, fuelling bets of a rate cut. In crypto markets, bitcoin fell 1 per cent to $116,939, staying below its recent record high of $123,153. (With inputs from agencies)&nbsp;

Although Ishiba remains PM, his position has weakened. The yen rose 0.7% against the dollar, while Japanese bonds saw increased volatility. Markets are closely monitoring potential alliances in parliament and ongoing trade negotiations with the US as tensions escalate.

On Monday, the Japanese yen remained firm after Prime Minister Shigeru Ishiba’s ruling coalition suffered a historic defeat in upper house elections. This raised fears of possible political instability in the world’s fourth-largest economy. As global markets eyed implications for policy and trade, while Japanese markets were closed for a holiday, the yen became an early signal of investor unease. Coalition party's defeat setback deepens uncertainty Japan’s Liberal Democratic Party (LDP) secured only 47 seats in the upper house vote. The LDP is falling short of the 50 seats which is needed for a majority, marking the first time since 1955 that the ruling party lacks control in either legislative chamber. According to Reuters, this adds pressure on Prime Minister Shigeru Ishiba, who had already lost the lower house majority in October. Though the poll result does not automatically end Ishiba’s premiership but it has weakened his position. “PM Ishiba has been defiant in his stance to stay the course… but his hand has been sufficiently weakened,” said Chris Weston, head of research at Pepperstone, as quoted by Reuters. Yen firms, bonds under pressure In early Monday trading before soaring some gains, the yen strengthened as much as 0.7 per cent against the US dollar, according to Bloomberg. It traded at 148.32 per dollar, close to last week’s 3.5-month low, and also gained slightly against the euro at 172.64. “Uncertainty usually tends to favour the yen, at least initially,” said Rodrigo Catril, a currency strategist at National Australia Bank in Sydney, as quoted by Bloomberg. However, Japanese government bonds (JGBs) continue to remain volatile. Yields on 30-year debt surged to record highs last week as concerns mounted over the country’s fiscal direction under a weakened government. All eyes on US tariffs Markets are also watching how Ishiba navigates potential alliances in parliament. Analysts suggest that one option could be partnering with the centrist Democratic Party for the People (DPP) to secure a working majority. This move can reportedly offer some short-term stability to Ishiba. But all of this is unfolding just as Japan attempts to reach a crucial trade agreement with the US before an August 1 deadline. As per Bloomberg, US President Donald Trump’s tariff stance has hardened, raising the risk of fresh duties on Japanese and European goods. EU envoys are expected to meet this week to prepare for a possible no-deal outcome. Asian market reaction Amid growing trade tension outside Japan, Asian markets opened cautiously. Nikkei futures were flat, while US equity futures edged 0.1 per cent higher in early Asia trade. The euro remained stable at $1.1632, while the British pound last traded at $1.1341. Meanwhile, the New Zealand dollar slipped 0.18 per cent to $0.5951 after second-quarter inflation data came in below expectations, fuelling bets of a rate cut. In crypto markets, bitcoin fell 1 per cent to $116,939, staying below its recent record high of $123,153. (With inputs from agencies)

Following a historic defeat for Prime Minister Shigeru Ishiba’s coalition in upper house elections, the Yen on Monday strengthened. The LDP won only 47 seats, lacking the majority needed.

Yen gains as Japan faces a political shake-up after a major election blow

The global pharmaceutical industry is on high alert as US President Donald Trump renews his threat to impose sweeping 200 per cent tariffs on imported pharmaceutical products. The unprecedented proposal, expected to be formally announced in the coming weeks, would give drug manufacturers just 12 to 18 months to shift production to the United States or face steep import duties. The industry, which has long operated under an exemption from customs duties, now faces a potentially seismic shift in its global supply chain structure.This threat follows the April launch of a Section 232 national security investigation into the pharmaceutical sector and is seen as part of Trump’s broader strategy to bring drug production back to US soil and lower domestic medicine prices. While the administration has indicated that the tariffs would not be implemented immediately, the tight timeline for compliance has sparked concern across the industry. Analysts and economists warn that such measures could disrupt supply chains, raise drug prices for American consumers, and compress profit margins across the board.<h2>Major investment plans may not be enough</h2>In anticipation of the tariffs, several major pharmaceutical companies, including Novartis, Sanofi, Roche, and US-based Eli Lilly and Johnson &amp; Johnson, have announced large-scale investments in US manufacturing. Eli Lilly alone is planning to inject $27 billion into US facilities, while other companies have pledged billions more. However, industry experts suggest that these moves, while significant, are unlikely to meet the demands of Trump’s proposed timeline. Establishing or expanding pharmaceutical manufacturing sites typically takes four to five years due to regulatory, logistical, and operational complexities.Although the administration is expected to offer a grace period of up to 18 months, companies argue that this is not nearly enough time to fully reconfigure manufacturing processes and obtain necessary approvals from the US Food and Drug Administration. Delays in this transition could lead to drug shortages, particularly in treatments that rely heavily on global supply chains or involve active pharmaceutical ingredients sourced from countries like India, China, and Ireland.<h2>Global trade tensions and sectoral fallout</h2>The looming tariff threat comes at a time of heightened global trade tensions, with the pharmaceutical sector increasingly caught in the crossfire. The US remains the largest export market for European drugmakers, accounting for over a third of their non-EU sales and contributing significantly to their trade surpluses. Ireland, a key manufacturing hub hosting 12 of the world’s largest drugmakers, saw pharmaceutical exports to the US skyrocket earlier this year but now faces a potential blow to its trade-dependent economy.Meanwhile, Switzerland and the European Union (EU) continue to negotiate potential carve-outs in their respective trade talks with Washington. The recent US-UK trade deal includes language suggesting preferential treatment for British pharmaceutical products may be considered, contingent on the final findings of the ongoing Section 232 investigation.Despite these diplomatic efforts, the lack of clarity over which companies or products may ultimately be affected is compounding uncertainty across the sector. Many smaller manufacturers and contract firms, which lack the resources to rapidly shift operations or negotiate exemptions, may find themselves particularly vulnerable.<h2>Market reaction and economic implications</h2>While major pharma stocks have remained relatively stable following Trump’s July 8 remarks, some firms with heavy reliance on overseas production saw modest declines. Eli Lilly’s shares dipped over 2 per cent after the announcement, reflecting investor concern about the company’s manufacturing exposure in Ireland. However, shares partially recovered, signalling that markets may be waiting for more concrete policy details before reacting further.Economists caution that a tariff rate as high as 200 per cent would not only inflate drug prices domestically but could also undermine research and development funding, much of which is supported by US pharmaceutical profits. With nearly 75 per cent of global pharma profits generated in the US, any disruption could ripple through global innovation pipelines and delay access to critical medications. As the industry awaits further policy announcements, pharmaceutical companies are engaged in intense scenario planning to navigate a fast-evolving and politically charged trade environment.

In anticipation of the tariffs, several major pharmaceutical companies, including Novartis, Sanofi, Roche, and US-based Eli Lilly and Johnson & Johnson, have announced large-scale investments in US manufacturing. 

The global pharmaceutical industry is on high alert as US President Donald Trump renews his threat to impose sweeping 200 per cent tariffs on imported pharmaceutical products. The unprecedented proposal, expected to be formally announced in the coming weeks, would give drug manufacturers just 12 to 18 months to shift production to the United States or face steep import duties. The industry, which has long operated under an exemption from customs duties, now faces a potentially seismic shift in its global supply chain structure. This threat follows the April launch of a Section 232 national security investigation into the pharmaceutical sector and is seen as part of Trump’s broader strategy to bring drug production back to US soil and lower domestic medicine prices. While the administration has indicated that the tariffs would not be implemented immediately, the tight timeline for compliance has sparked concern across the industry. Analysts and economists warn that such measures could disrupt supply chains, raise drug prices for American consumers, and compress profit margins across the board. Major investment plans may not be enough In anticipation of the tariffs, several major pharmaceutical companies, including Novartis, Sanofi, Roche, and US-based Eli Lilly and Johnson & Johnson, have announced large-scale investments in US manufacturing. Eli Lilly alone is planning to inject $27 billion into US facilities, while other companies have pledged billions more. However, industry experts suggest that these moves, while significant, are unlikely to meet the demands of Trump’s proposed timeline. Establishing or expanding pharmaceutical manufacturing sites typically takes four to five years due to regulatory, logistical, and operational complexities. Although the administration is expected to offer a grace period of up to 18 months, companies argue that this is not nearly enough time to fully reconfigure manufacturing processes and obtain necessary approvals from the US Food and Drug Administration. Delays in this transition could lead to drug shortages, particularly in treatments that rely heavily on global supply chains or involve active pharmaceutical ingredients sourced from countries like India, China, and Ireland. Global trade tensions and sectoral fallout The looming tariff threat comes at a time of heightened global trade tensions, with the pharmaceutical sector increasingly caught in the crossfire. The US remains the largest export market for European drugmakers, accounting for over a third of their non-EU sales and contributing significantly to their trade surpluses. Ireland, a key manufacturing hub hosting 12 of the world’s largest drugmakers, saw pharmaceutical exports to the US skyrocket earlier this year but now faces a potential blow to its trade-dependent economy. Meanwhile, Switzerland and the European Union (EU) continue to negotiate potential carve-outs in their respective trade talks with Washington. The recent US-UK trade deal includes language suggesting preferential treatment for British pharmaceutical products may be considered, contingent on the final findings of the ongoing Section 232 investigation. Despite these diplomatic efforts, the lack of clarity over which companies or products may ultimately be affected is compounding uncertainty across the sector. Many smaller manufacturers and contract firms, which lack the resources to rapidly shift operations or negotiate exemptions, may find themselves particularly vulnerable. Market reaction and economic implications While major pharma stocks have remained relatively stable following Trump’s July 8 remarks, some firms with heavy reliance on overseas production saw modest declines. Eli Lilly’s shares dipped over 2 per cent after the announcement, reflecting investor concern about the company’s manufacturing exposure in Ireland. However, shares partially recovered, signalling that markets may be waiting for more concrete policy details before reacting further. Economists caution that a tariff rate as high as 200 per cent would not only inflate drug prices domestically but could also undermine research and development funding, much of which is supported by US pharmaceutical profits. With nearly 75 per cent of global pharma profits generated in the US, any disruption could ripple through global innovation pipelines and delay access to critical medications. As the industry awaits further policy announcements, pharmaceutical companies are engaged in intense scenario planning to navigate a fast-evolving and politically charged trade environment.

In anticipation of the tariffs, several major pharmaceutical companies, including Novartis, Sanofi, Roche, and US-based Eli Lilly and Johnson &amp; Johnson, have announced large-scale investments in US manufacturing.&nbsp;

Pharmaceutical industry braces for impact as Trump threatens 200% tariffs

US President Donald Trump announced on July 10 that the United States will impose blanket tariffs of 15 per cent to 20 per cent on most of its trade partners, a move that would significantly escalate his ongoing trade war with key nations. The announcement, made during an interview with NBC News, comes as Trump remains steadfast in his economic agenda despite concerns about inflation and the potential impact on stock markets. “We’re just going to say all of the remaining countries are going to pay, whether it’s 20 per cent or 15 per cent. We’ll work that out now,” Trump stated.&nbsp;Currently, the United States has a blanket tariff of 10 per cent, but the president indicated that the new higher rates will be enacted as soon as next month. Trump dismissed warnings that increased tariffs could negatively affect the economy, including fears of rising inflation and supply chain disruptions, citing recent stock market performance as a sign of his policies’ success.Despite a turbulent period earlier this year when the S&amp;P 500 experienced one of its fastest drops following the initial announcement of tariffs, the stock market reached a new high on July 10. “The stock market hit a new high today. I think the tariffs have been very well-received,” Trump noted. The increase in equity markets appears to be in contrast to earlier concerns over the long-term effects of tariff hikes, especially amid ongoing trade tensions.<h2>Global trade relations under pressure</h2>In his conversation with NBC News, Trump confirmed that the blanket tariffs will target a wide range of trade partners, not just specific nations. He hinted at a significant expansion of the tariff policy, with countries that have not already received letters regarding new tariff rates expected to face the same blanket measures. “Not everybody has to get a letter. You know that. We’re just setting our tariffs,” Trump explained, signalling that further escalations are imminent.Trump’s administration has spent recent weeks sending formal letters to countries around the world, notifying them of upcoming tariff increases. As part of his broader strategy, the president has indicated that these new rates could reach as high as 50 per cent on certain imports, including metals like copper. While Trump has touted his tariff policies as a way to strengthen American industry, the impact on US consumers remains uncertain.Critics of the tariff plan warn that the new measures could result in higher prices for American consumers, particularly on imported goods, and potentially exacerbate inflation, which remains above 2.3 per cent. However, Trump dismissed concerns raised by business leaders, stating that if goods are made in the US, they wouldn’t have a price increase.While the White House maintains that these tariffs will lead to fairer trade deals and greater economic independence, many experts worry that they could further strain relationships with US allies and lead to retaliatory measures. The European Union, for example, is already preparing retaliatory tariffs, including potential duties on goods made in swing states.As Trump prepares to send additional letters to European countries, the fate of US trade relations remains uncertain, with no clear resolution in sight. The president’s trade strategy continues to evolve as tensions rise, and the coming weeks could prove critical in shaping the global economic landscape.

Currently, the United States has a blanket tariff of 10 per cent, but the president indicated that the new higher rates will be enacted as soon as next month.

US President Donald Trump announced on July 10 that the United States will impose blanket tariffs of 15 per cent to 20 per cent on most of its trade partners, a move that would significantly escalate his ongoing trade war with key nations. The announcement, made during an interview with NBC News, comes as Trump remains steadfast in his economic agenda despite concerns about inflation and the potential impact on stock markets. “We’re just going to say all of the remaining countries are going to pay, whether it’s 20 per cent or 15 per cent. We’ll work that out now,” Trump stated. Currently, the United States has a blanket tariff of 10 per cent, but the president indicated that the new higher rates will be enacted as soon as next month. Trump dismissed warnings that increased tariffs could negatively affect the economy, including fears of rising inflation and supply chain disruptions, citing recent stock market performance as a sign of his policies’ success. Despite a turbulent period earlier this year when the S&P 500 experienced one of its fastest drops following the initial announcement of tariffs, the stock market reached a new high on July 10. “The stock market hit a new high today. I think the tariffs have been very well-received,” Trump noted. The increase in equity markets appears to be in contrast to earlier concerns over the long-term effects of tariff hikes, especially amid ongoing trade tensions. Global trade relations under pressure In his conversation with NBC News, Trump confirmed that the blanket tariffs will target a wide range of trade partners, not just specific nations. He hinted at a significant expansion of the tariff policy, with countries that have not already received letters regarding new tariff rates expected to face the same blanket measures. “Not everybody has to get a letter. You know that. We’re just setting our tariffs,” Trump explained, signalling that further escalations are imminent. Trump’s administration has spent recent weeks sending formal letters to countries around the world, notifying them of upcoming tariff increases. As part of his broader strategy, the president has indicated that these new rates could reach as high as 50 per cent on certain imports, including metals like copper. While Trump has touted his tariff policies as a way to strengthen American industry, the impact on US consumers remains uncertain. Critics of the tariff plan warn that the new measures could result in higher prices for American consumers, particularly on imported goods, and potentially exacerbate inflation, which remains above 2.3 per cent. However, Trump dismissed concerns raised by business leaders, stating that if goods are made in the US, they wouldn’t have a price increase. While the White House maintains that these tariffs will lead to fairer trade deals and greater economic independence, many experts worry that they could further strain relationships with US allies and lead to retaliatory measures. The European Union, for example, is already preparing retaliatory tariffs, including potential duties on goods made in swing states. As Trump prepares to send additional letters to European countries, the fate of US trade relations remains uncertain, with no clear resolution in sight. The president’s trade strategy continues to evolve as tensions rise, and the coming weeks could prove critical in shaping the global economic landscape.

Currently, the United States has a blanket tariff of 10 per cent, but the president indicated that the new higher rates will be enacted as soon as next month.

Trump to impose 15-20% blanket tariffs on most trade partners

United States President Donald Trump has issued a warning to countries aligning with BRICS saying that they would be charged an additional 10 percent tariff. He termed the BRICS group follows an "Anti-American policy." The US President did not clarify or expand on the “anti-American policies” reference. His post came after he announced that the first set of tariff letters, including trade deals, would be sent to several countries, starting Monday (July 7). Notably, the BRICS Summit is currently underway in Brazil and in their declaration they did not name Trump but expressed concerns over tariffs.&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. Thank you for your attention to this matter!" Trump said in a post on Truth Social.<figure class="image"><img src="https://cdn1.wionews.com/prod/wion/images/2025/20250707/image-1751860612975.png"></figure>&nbsp;The BRICS bloc of developing nations condemned the increase in tariffs and attacks on Iran, but refrained from naming Donald Trump. BRICS initially included India, Brazil, China, Russia and South Africa, among other countries. Last year, Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia and the United Arab Emirates and Indonesia were added as members of the group. In the summit that is underway in Brazil, the two-day summit was marked by the absence of two of its most powerful members - China’s President Xi Jinping and Russian President Vladimir Putin. In an indirect swipe at the US, the group’s declaration raised “serious concerns” about the rise of tariffs which it said were “inconsistent with WTO (World Trade Organization) rules.” The BRICS added that those restrictions “threaten to reduce global trade, disrupt global supply chains, and introduce uncertainty.”&nbsp;Trump had earlier, on April 2, announced 'Liberation Day' and imposed reciprocal tariffs on all countries. He had later announced a 90-day pause to the tariffs. His 90-day period is getting over on Wednesday and Trump's Treasury Secretary Scott Bessent said that it April 2 tariffs will take effect from August 1. “If you don’t move things along, then on August 1 you will boomerang back to your April 2 tariff level,” Bessent said to CNN.&nbsp;&nbsp;<figure class="image"><img src="https://cdn1.wionews.com/prod/wion/images/2025/20250707/image-1751860628318.png"></figure>&nbsp;A reciprocal tariff is a tax or trade restriction that one country places on another in response to similar actions taken by that country. Trump added that letters will continue to go out on Tuesday and Wednesday. “We’ll have most countries done by July 9 — either a letter or a deal,” he said. “The president is right in the midst of discussing all sorts of deals with all sorts of countries,” Commerce Secretary Howard Lutnick told reporters Sunday alongside Trump. India and the US began talks on a bilateral trade agreement in February this year with Trump hinting that a major trade deal with India would be announced soon. &nbsp;

United States President Donald Trump did not elaborate on his reference to anti-American policies in BRICS but threatened tariffs on countries aligning with BRICS policies unless they negotiate by August 1.

United States President Donald Trump has issued a warning to countries aligning with BRICS saying that they would be charged an additional 10 percent tariff. He termed the BRICS group follows an "Anti-American policy." The US President did not clarify or expand on the “anti-American policies” reference. His post came after he announced that the first set of tariff letters, including trade deals, would be sent to several countries, starting Monday (July 7). Notably, the BRICS Summit is currently underway in Brazil and in their declaration they did not name Trump but expressed concerns over tariffs. "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. Thank you for your attention to this matter!" Trump said in a post on Truth Social. The BRICS bloc of developing nations condemned the increase in tariffs and attacks on Iran, but refrained from naming Donald Trump. BRICS initially included India, Brazil, China, Russia and South Africa, among other countries. Last year, Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia and the United Arab Emirates and Indonesia were added as members of the group. In the summit that is underway in Brazil, the two-day summit was marked by the absence of two of its most powerful members - China’s President Xi Jinping and Russian President Vladimir Putin. In an indirect swipe at the US, the group’s declaration raised “serious concerns” about the rise of tariffs which it said were “inconsistent with WTO (World Trade Organization) rules.” The BRICS added that those restrictions “threaten to reduce global trade, disrupt global supply chains, and introduce uncertainty.” Trump had earlier, on April 2, announced 'Liberation Day' and imposed reciprocal tariffs on all countries. He had later announced a 90-day pause to the tariffs. His 90-day period is getting over on Wednesday and Trump's Treasury Secretary Scott Bessent said that it April 2 tariffs will take effect from August 1. “If you don’t move things along, then on August 1 you will boomerang back to your April 2 tariff level,” Bessent said to CNN. A reciprocal tariff is a tax or trade restriction that one country places on another in response to similar actions taken by that country. Trump added that letters will continue to go out on Tuesday and Wednesday. “We’ll have most countries done by July 9 — either a letter or a deal,” he said. “The president is right in the midst of discussing all sorts of deals with all sorts of countries,” Commerce Secretary Howard Lutnick told reporters Sunday alongside Trump. India and the US began talks on a bilateral trade agreement in February this year with Trump hinting that a major trade deal with India would be announced soon.

United States President Donald Trump did not elaborate on his reference to anti-American policies in BRICS but threatened tariffs on countries aligning with BRICS policies unless they negotiate by August 1.

'Any country aligning themselves...': Trump's BIG tariff threat to BRICS countries for 'anti-American policy': Here's what he said

Oil prices slipped on Thursday after a strong rally in the previous session, as traders weighed the looming threat of higher US tariffs, signs of faltering demand in major economies, and expectations that OPEC+ will announce an output increase at its upcoming meeting. According to Reuters, Brent crude futures fell 45 cents, or 0.65 per cent, to $68.66 a barrel by 0645 GMT. US West Texas Intermediate (WTI) crude declined 44 cents, or 0.66 per cent, to $67.01 a barrel.&nbsp;The losses follow a roughly 3 per cent surge on Wednesday, when prices hit their highest level in a week. That rally was driven by geopolitical jitters after Iran suspended cooperation with the United Nations nuclear watchdog, fuelling fears the long-running dispute over its nuclear programme could spiral into armed conflict. Additionally, a preliminary trade deal between the US and Vietnam offered some support to sentiment.<h2>Tariff uncertainty clouds demand outlook</h2>However, attention has now turned back to the uncertain outlook for global demand, with traders wary of fresh tariff risks. As per Reuters, the US is nearing the end of a 90-day pause on higher tariffs, which is set to expire on 9 July. Without new trade agreements in place with major partners such as the European Union and Japan, there is growing concern that Washington could reimpose steeper duties.&nbsp;Analysts fear such a move could slow global trade and dampen fuel demand. ING analysts, cited by Reuters, noted that with both the tariff deadline and the US Independence Day holiday weekend approaching, many market participants will be reluctant to maintain large positions, reducing appetite for risk.<h2>OPEC+ expected to raise output</h2>The production outlook is also weighing on prices. According to Reuters, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, collectively known as OPEC+—are widely expected to agree to raise output by 411,000 barrels per day at their meeting this weekend.&nbsp;Such an increase would add to global supply at a time when demand signals are already flashing warnings, potentially putting further pressure on prices in the weeks ahead.<h2>Demand concerns deepen on China, US data</h2>Reuters also reported that demand worries were compounded on Thursday by weaker-than-expected economic data out of China, the world’s biggest oil importer. A private-sector survey showed service-sector activity in China expanded at its slowest pace in nine months in June, with domestic demand weakening and new export orders declining.&nbsp;Meanwhile, in the US, the world’s largest crude consumer, official data revealed a surprise build in inventories last week. The Energy Information Administration said crude stocks rose by 3.80 million barrels to 419 million barrels, defying analyst expectations in a Reuters poll for a drawdown of 1.80 million barrels. Weekly gasoline demand also fell to 8.6 million barrels per day, raising fresh concerns about consumption during the peak US summer driving season.<h2>Eyes on US jobs data, Fed outlook</h2>Traders are also awaiting key economic data to gauge the health of the US economy and the likely path of interest rates. Reuters noted that markets are keenly watching Thursday’s release of the US monthly employment report, which could help shape expectations around the depth and timing of potential Federal Reserve rate cuts later this year.&nbsp;Lower interest rates could stimulate economic activity, which would be expected to support oil demand. However, signs of a cooling labour market may complicate that outlook. A private payrolls report released on Wednesday showed a contraction for the first time in two years, though analysts cautioned there is no direct correlation with the government’s official data.

Crude prices slip after a brief rally, pressured by weak China and US demand data, looming US tariff hikes, and anticipated OPEC+ supply increases.

Oil prices slipped on Thursday after a strong rally in the previous session, as traders weighed the looming threat of higher US tariffs, signs of faltering demand in major economies, and expectations that OPEC+ will announce an output increase at its upcoming meeting. According to Reuters, Brent crude futures fell 45 cents, or 0.65 per cent, to $68.66 a barrel by 0645 GMT. US West Texas Intermediate (WTI) crude declined 44 cents, or 0.66 per cent, to $67.01 a barrel. The losses follow a roughly 3 per cent surge on Wednesday, when prices hit their highest level in a week. That rally was driven by geopolitical jitters after Iran suspended cooperation with the United Nations nuclear watchdog, fuelling fears the long-running dispute over its nuclear programme could spiral into armed conflict. Additionally, a preliminary trade deal between the US and Vietnam offered some support to sentiment. Tariff uncertainty clouds demand outlook However, attention has now turned back to the uncertain outlook for global demand, with traders wary of fresh tariff risks. As per Reuters, the US is nearing the end of a 90-day pause on higher tariffs, which is set to expire on 9 July. Without new trade agreements in place with major partners such as the European Union and Japan, there is growing concern that Washington could reimpose steeper duties. Analysts fear such a move could slow global trade and dampen fuel demand. ING analysts, cited by Reuters, noted that with both the tariff deadline and the US Independence Day holiday weekend approaching, many market participants will be reluctant to maintain large positions, reducing appetite for risk. OPEC+ expected to raise output The production outlook is also weighing on prices. According to Reuters, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, collectively known as OPEC+—are widely expected to agree to raise output by 411,000 barrels per day at their meeting this weekend. Such an increase would add to global supply at a time when demand signals are already flashing warnings, potentially putting further pressure on prices in the weeks ahead. Demand concerns deepen on China, US data Reuters also reported that demand worries were compounded on Thursday by weaker-than-expected economic data out of China, the world’s biggest oil importer. A private-sector survey showed service-sector activity in China expanded at its slowest pace in nine months in June, with domestic demand weakening and new export orders declining. Meanwhile, in the US, the world’s largest crude consumer, official data revealed a surprise build in inventories last week. The Energy Information Administration said crude stocks rose by 3.80 million barrels to 419 million barrels, defying analyst expectations in a Reuters poll for a drawdown of 1.80 million barrels. Weekly gasoline demand also fell to 8.6 million barrels per day, raising fresh concerns about consumption during the peak US summer driving season. Eyes on US jobs data, Fed outlook Traders are also awaiting key economic data to gauge the health of the US economy and the likely path of interest rates. Reuters noted that markets are keenly watching Thursday’s release of the US monthly employment report, which could help shape expectations around the depth and timing of potential Federal Reserve rate cuts later this year. Lower interest rates could stimulate economic activity, which would be expected to support oil demand. However, signs of a cooling labour market may complicate that outlook. A private payrolls report released on Wednesday showed a contraction for the first time in two years, though analysts cautioned there is no direct correlation with the government’s official data.

Oil prices dip as demand concerns, US tariff risks, and expectations of an OPEC+ output hike offset geopolitical tensions.

Oil prices slip as US tariff deadline, OPEC+ output hike loom

South Korea’s exports rebounded in June on the back of strong technology demand, but shipments to the United States and China remained under pressure, reflecting the lingering impact of US tariff threats and broader trade tensions. According to data reported by Reuters, overall exports from Asia’s fourth-largest economy rose 4.3 per cent in June from a year earlier to $59.80 billion. The result was slightly below economists’ median forecast of a 4.7 per cent gain, underlining a still uneven recovery for one of the world’s key bellwethers of global trade.<h2>Semiconductor shipments lead growth</h2>The standout performer was semiconductors, South Korea’s most important export. Shipments of chips increased for a fourth consecutive month, rising 11.6 per cent in June, though at the slowest pace in that streak.&nbsp;Demand for advanced chips has remained solid even as broader factory activity has weakened. South Korea’s factory output contracted for a fifth straight month in June, with sluggish demand in Japan, China and the US offsetting some improvement in the domestic economy. Other tech-heavy sectors also offered mixed results. Exports of automobiles rose 2.3 per cent, thanks largely to robust electric-vehicle demand in Europe that offset weaker sales in the United States.<h2>Tariff threats hit steel, appliances</h2>While tech-related exports showed resilience, other key sectors were hurt by high tariffs, especially in the US market. Reuters reports that shipments to the United States fell 0.5 per cent in June, marking the third consecutive monthly decline, while exports to China fell 2.7 per cent for a second straight monthly drop.&nbsp;Steel products exports fell 8.0 per cent, and home appliances plunged 15.6 per cent, under direct pressure from US tariffs. By contrast, exports of car parts rose 2.4 per cent, with automakers increasing local production in the US to sidestep some tariff costs. South Korea’s Trade Ministry noted exports to the European Union climbed 14.7 per cent, while those to Southeast Asian countries rose 2.1 per cent, suggesting that exporters are seeking to diversify markets to reduce reliance on China and the US.<h2>Seoul braces for tariff uncertainty</h2>The South Korean government acknowledged the difficult outlook, warning that tariff volatility and global demand uncertainties would likely persist through the second half of 2025. “Volatility in US tariff policy and economic recovery uncertainty are expected to persist in the second half,” Industry and Trade Minister Ahn Duk-geun said in a statement, as reported by Reuters, promising an “all-out response” to US tariff threats.&nbsp;Seoul is currently negotiating with Washington for an extension to a 90-day pause in punitive US tariffs that is set to expire next week. A senior South Korean trade official told Reuters that talks are expected to continue past the deadline as both sides seek a deal. The US has imposed high tariffs on various sectors under President Donald Trump’s administration. A 25 per cent “reciprocal” duty on South Korean goods remains paused for negotiations. Meanwhile, China—South Korea’s biggest trading partner is also engaged in its own trade negotiations with the US, after both sides significantly reduced tariffs on each other’s goods in a truce reached in mid-May and a framework agreement last month.<h2>Trade surplus hits multi-year high</h2>Despite the sectoral challenges, South Korea posted its largest monthly trade surplus since September 2018, with the surplus reaching $9.08 billion in June. Imports rose 3.3 per cent to $50.72 billion, as domestic demand remained relatively steady. Analysts said there were reasons for cautious optimism about trade stabilisation, even as risks remained. “Optimism is growing around trade negotiations of major countries and tariffs are unlikely to be raised even more, though it is too early to say exports have bottomed out,” Lee Jeong-hoon, an economist at Eugene Investment, told Reuters.&nbsp;As the global trade environment remains tense and US tariff policy under President Trump remains unpredictable, South Korea’s strategy is likely to focus on both defending access to key markets and accelerating its push into new ones.&nbsp;(With inputs from the agencies)&nbsp;

Seoul exports rose 4.3% in June, driven by strong chip demand, but US and China-bound shipments fell amid ongoing tariff tensions.

South Korea’s exports rebounded in June on the back of strong technology demand, but shipments to the United States and China remained under pressure, reflecting the lingering impact of US tariff threats and broader trade tensions. According to data reported by Reuters, overall exports from Asia’s fourth-largest economy rose 4.3 per cent in June from a year earlier to $59.80 billion. The result was slightly below economists’ median forecast of a 4.7 per cent gain, underlining a still uneven recovery for one of the world’s key bellwethers of global trade. Semiconductor shipments lead growth The standout performer was semiconductors, South Korea’s most important export. Shipments of chips increased for a fourth consecutive month, rising 11.6 per cent in June, though at the slowest pace in that streak. Demand for advanced chips has remained solid even as broader factory activity has weakened. South Korea’s factory output contracted for a fifth straight month in June, with sluggish demand in Japan, China and the US offsetting some improvement in the domestic economy. Other tech-heavy sectors also offered mixed results. Exports of automobiles rose 2.3 per cent, thanks largely to robust electric-vehicle demand in Europe that offset weaker sales in the United States. Tariff threats hit steel, appliances While tech-related exports showed resilience, other key sectors were hurt by high tariffs, especially in the US market. Reuters reports that shipments to the United States fell 0.5 per cent in June, marking the third consecutive monthly decline, while exports to China fell 2.7 per cent for a second straight monthly drop. Steel products exports fell 8.0 per cent, and home appliances plunged 15.6 per cent, under direct pressure from US tariffs. By contrast, exports of car parts rose 2.4 per cent, with automakers increasing local production in the US to sidestep some tariff costs. South Korea’s Trade Ministry noted exports to the European Union climbed 14.7 per cent, while those to Southeast Asian countries rose 2.1 per cent, suggesting that exporters are seeking to diversify markets to reduce reliance on China and the US. Seoul braces for tariff uncertainty The South Korean government acknowledged the difficult outlook, warning that tariff volatility and global demand uncertainties would likely persist through the second half of 2025. “Volatility in US tariff policy and economic recovery uncertainty are expected to persist in the second half,” Industry and Trade Minister Ahn Duk-geun said in a statement, as reported by Reuters, promising an “all-out response” to US tariff threats. Seoul is currently negotiating with Washington for an extension to a 90-day pause in punitive US tariffs that is set to expire next week. A senior South Korean trade official told Reuters that talks are expected to continue past the deadline as both sides seek a deal. The US has imposed high tariffs on various sectors under President Donald Trump’s administration. A 25 per cent “reciprocal” duty on South Korean goods remains paused for negotiations. Meanwhile, China—South Korea’s biggest trading partner is also engaged in its own trade negotiations with the US, after both sides significantly reduced tariffs on each other’s goods in a truce reached in mid-May and a framework agreement last month. Trade surplus hits multi-year high Despite the sectoral challenges, South Korea posted its largest monthly trade surplus since September 2018, with the surplus reaching $9.08 billion in June. Imports rose 3.3 per cent to $50.72 billion, as domestic demand remained relatively steady. Analysts said there were reasons for cautious optimism about trade stabilisation, even as risks remained. “Optimism is growing around trade negotiations of major countries and tariffs are unlikely to be raised even more, though it is too early to say exports have bottomed out,” Lee Jeong-hoon, an economist at Eugene Investment, told Reuters. As the global trade environment remains tense and US tariff policy under President Trump remains unpredictable, South Korea’s strategy is likely to focus on both defending access to key markets and accelerating its push into new ones. (With inputs from the agencies)

South Korea’s June export rebound, led by semiconductors, is tempered by declining trade with the US and China due to tariff pressures—prompting Seoul to diversify markets and brace for prolonged trade uncertainty.

South Korea trade improves on tech boom, struggles with US tariffs

With less than ten days remaining before the United States imposes sweeping tariff hikes on several trading partners, President Donald Trump has called trade with Japan “unfair” and signalled that the 25 per cent tariffs on automobiles may remain in place unless a new deal is reached. Trump’s remarks, made during a Fox News interview aired June 29, raise fresh concerns about a potential breakdown in trade negotiations that could significantly harm Japan’s already fragile economic recovery.“They won’t take our cars, and yet we take millions and millions of their cars into the United States. It’s not fair,” Trump said, referencing Japan’s limited import of US vehicles while dominating the American market. “I could send one [letter] to Japan. ‘Dear Mr Japan, here’s the story. You’re going to pay a 25 per cent tariff on your cars,’” he added. Trump also suggested Japan could help reduce the bilateral trade deficit by purchasing more American oil and goods. “Now we have oil. They could take a lot of oil. They could take a lot of other things,” he said.The Trump administration’s temporary suspension of country-based reciprocal tariffs expires on July 9. Without a deal, Japan faces not only the continuation of existing 25 per cent automobile tariffs but also a jump in broader duties from the current 10 per cent to as high as 24 per cent. These proposed levies would hit key export sectors, especially autos, which account for about 28 per cent of Japan’s $145 billion in annual exports to the US.<h2>Japan’s trade envoy pushes for breakthrough</h2>In response to the pressure, Japan’s chief trade negotiator Ryosei Akazawa, flew to Washington last week for a seventh round of talks with US Commerce Secretary Howard Lutnick. While the initial meeting was held in person, two subsequent conversations took place over the phone, indicating urgency but also unresolved sticking points. Japanese government statements over the weekend described the discussions as “fruitful” but offered no concrete signs of progress.Akazawa has pushed for a comprehensive agreement that includes sector-specific tariff relief, especially for autos. He emphasised that Japan’s automakers have invested more than $60 billion in the US, creating 2.3 million American jobs, and warned that the 25 per cent tariff is “unacceptable”.<h2>Falling exports underscore growing risks</h2>Trade data for May reinforces Tokyo’s concerns. Japanese exports fell for the first time in eight months, dropping 1.7 per cent year-on-year, while exports to the US plunged 11.1 per cent. The downturn reflects the chilling effect of looming tariffs, which had already prompted companies to front-load shipments earlier this year. Imports also fell 7.7 per cent, leading to a trade deficit of 637.6 billion yen ($4.39 billion) in May.Economists warn that if the full range of US tariffs goes into effect, Japan’s exports to the US could fall by 20-30 per cent, shaving up to 1 percentage point from GDP and risking a technical recession after the economy already contracted in the first quarter. While Trump maintains that the US can unilaterally set its trade terms, failure to reach a deal with Japan could deal a major blow to both countries’ economic outlooks.

Tokyo is trying to strike a trade deal with the United States as July 9 tariff deadline looms; falling exports are adding pressure to the fragile Japanese economy.

With less than ten days remaining before the United States imposes sweeping tariff hikes on several trading partners, President Donald Trump has called trade with Japan “unfair” and signalled that the 25 per cent tariffs on automobiles may remain in place unless a new deal is reached. Trump’s remarks, made during a Fox News interview aired June 29, raise fresh concerns about a potential breakdown in trade negotiations that could significantly harm Japan’s already fragile economic recovery. “They won’t take our cars, and yet we take millions and millions of their cars into the United States. It’s not fair,” Trump said, referencing Japan’s limited import of US vehicles while dominating the American market. “I could send one [letter] to Japan. ‘Dear Mr Japan, here’s the story. You’re going to pay a 25 per cent tariff on your cars,’” he added. Trump also suggested Japan could help reduce the bilateral trade deficit by purchasing more American oil and goods. “Now we have oil. They could take a lot of oil. They could take a lot of other things,” he said. The Trump administration’s temporary suspension of country-based reciprocal tariffs expires on July 9. Without a deal, Japan faces not only the continuation of existing 25 per cent automobile tariffs but also a jump in broader duties from the current 10 per cent to as high as 24 per cent. These proposed levies would hit key export sectors, especially autos, which account for about 28 per cent of Japan’s $145 billion in annual exports to the US. Japan’s trade envoy pushes for breakthrough In response to the pressure, Japan’s chief trade negotiator Ryosei Akazawa, flew to Washington last week for a seventh round of talks with US Commerce Secretary Howard Lutnick. While the initial meeting was held in person, two subsequent conversations took place over the phone, indicating urgency but also unresolved sticking points. Japanese government statements over the weekend described the discussions as “fruitful” but offered no concrete signs of progress. Akazawa has pushed for a comprehensive agreement that includes sector-specific tariff relief, especially for autos. He emphasised that Japan’s automakers have invested more than $60 billion in the US, creating 2.3 million American jobs, and warned that the 25 per cent tariff is “unacceptable”. Falling exports underscore growing risks Trade data for May reinforces Tokyo’s concerns. Japanese exports fell for the first time in eight months, dropping 1.7 per cent year-on-year, while exports to the US plunged 11.1 per cent. The downturn reflects the chilling effect of looming tariffs, which had already prompted companies to front-load shipments earlier this year. Imports also fell 7.7 per cent, leading to a trade deficit of 637.6 billion yen ($4.39 billion) in May. Economists warn that if the full range of US tariffs goes into effect, Japan’s exports to the US could fall by 20-30 per cent, shaving up to 1 percentage point from GDP and risking a technical recession after the economy already contracted in the first quarter. While Trump maintains that the US can unilaterally set its trade terms, failure to reach a deal with Japan could deal a major blow to both countries’ economic outlooks.

Tokyo is trying to strike a trade deal with the United States as July 9 tariff deadline looms; falling exports are adding pressure to the fragile Japanese economy.

Trump threatens Japan with 25% auto tariffs ahead of deadline, citing ‘unfair’ trade

US President Donald Trump has reaffirmed his intention not to extend the self-imposed July 9 deadline for countries to reach new trade agreements with the United States, signalling that tariffs of up to 25 per cent or more could soon take effect on nations with which the US has not finalised deals by then. Speaking in a taped interview on Fox News’s Sunday Morning Futures, aired June 29, Trump said, “I don’t think I’ll need to” extend the cutoff, though he added, “I could, no big deal.”The president emphasised his preference for sticking to the deadline, even joking on June 27 that he would rather shorten it and simply notify nations, “Congratulations, you’re paying 25 per cent.” He noted that formal letters notifying countries of impending tariffs would begin going out “pretty soon”.The July 9 cutoff marks the end of a 90-day negotiating window, initially set when the administration suspended sweeping country-based tariffs announced on ‘Liberation Day’ in April. Trump and his trade advisers have used the period to push for agreements aimed at reducing trade deficits and dismantling barriers that disadvantage US goods and services.<h2>Internal doubts persist</h2>However, internal differences over the feasibility of the timeline have surfaced. Treasury Secretary Scott Bessent, in an interview on Fox Business, cast doubt on the administration’s ability to finalise deals with all major trading partners by July 9. “If we can ink 10 or 12 of the important 18—there are another 20 important relationships—then I think we could have trade wrapped up by Labor Day,” Bessent said. His remarks highlight a more pragmatic approach within the administration, contrasting with Trump’s public hardline posture.Negotiations are ongoing with several nations, including India, which Trump suggested could be close to reaching an agreement. Indian trade officials recently held meetings in Washington. However, even the high-profile UK trade pact, once touted by the administration as a major breakthrough, still contains unresolved issues. Similarly, the recently concluded China agreement leaves significant gaps, especially around enforcement of fentanyl trafficking rules and US market access.Trump’s insistence on a hard deadline underscores his administration’s effort to maintain negotiating leverage. But critics warn that pushing nations too aggressively could result in shallow, hastily made deals or, worse, the imposition of disruptive tariffs that may harm US businesses and consumers.The president also touched on other major topics during his interview, including a pending deal involving TikTok, suggesting a group of “very wealthy people” were close to acquiring the platform. He hinted that Chinese approval might be required and promised more details “in about two weeks”, a familiar refrain in his policy announcements.

The Trump administration faces internal doubts about the tariff timeline; US trade pacts remain incomplete with most of its trading partners.

US President Donald Trump has reaffirmed his intention not to extend the self-imposed July 9 deadline for countries to reach new trade agreements with the United States, signalling that tariffs of up to 25 per cent or more could soon take effect on nations with which the US has not finalised deals by then. Speaking in a taped interview on Fox News’s Sunday Morning Futures, aired June 29, Trump said, “I don’t think I’ll need to” extend the cutoff, though he added, “I could, no big deal.” The president emphasised his preference for sticking to the deadline, even joking on June 27 that he would rather shorten it and simply notify nations, “Congratulations, you’re paying 25 per cent.” He noted that formal letters notifying countries of impending tariffs would begin going out “pretty soon”. The July 9 cutoff marks the end of a 90-day negotiating window, initially set when the administration suspended sweeping country-based tariffs announced on ‘Liberation Day’ in April. Trump and his trade advisers have used the period to push for agreements aimed at reducing trade deficits and dismantling barriers that disadvantage US goods and services. Internal doubts persist However, internal differences over the feasibility of the timeline have surfaced. Treasury Secretary Scott Bessent, in an interview on Fox Business, cast doubt on the administration’s ability to finalise deals with all major trading partners by July 9. “If we can ink 10 or 12 of the important 18—there are another 20 important relationships—then I think we could have trade wrapped up by Labor Day,” Bessent said. His remarks highlight a more pragmatic approach within the administration, contrasting with Trump’s public hardline posture. Negotiations are ongoing with several nations, including India, which Trump suggested could be close to reaching an agreement. Indian trade officials recently held meetings in Washington. However, even the high-profile UK trade pact, once touted by the administration as a major breakthrough, still contains unresolved issues. Similarly, the recently concluded China agreement leaves significant gaps, especially around enforcement of fentanyl trafficking rules and US market access. Trump’s insistence on a hard deadline underscores his administration’s effort to maintain negotiating leverage. But critics warn that pushing nations too aggressively could result in shallow, hastily made deals or, worse, the imposition of disruptive tariffs that may harm US businesses and consumers. The president also touched on other major topics during his interview, including a pending deal involving TikTok, suggesting a group of “very wealthy people” were close to acquiring the platform. He hinted that Chinese approval might be required and promised more details “in about two weeks”, a familiar refrain in his policy announcements.

The Trump administration faces internal doubts about the tariff timeline; US trade pacts remain incomplete with most of its trading partners.

Trump says he’ll stick to July 9 tariff deadline, warns countries to finalise trade deals

US President Donald Trump said Friday that he had terminated all trade discussions with Canada, over what he called “egregious tariffs” on a digital services tax on American tech companies. In a post on Truth Social, Trump referred to Canada as “a very difficult country to trade with” and said that its levy on tech firms—the first payment for which is due Monday—“is a direct and blatant attack on our Country.” “Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump wrote. “We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period.”&nbsp;Canada is the second-largest trading partner of the United States. Currently, the US has a tariff rate of 25% applied to non-USMCA goods that are imported from Canada. That excludes energy products, on which Trump has applied a 10% tariff rate. Canada also bears much of the brunt of Trump’s 50% tax on steel and aluminum imports, as it is the largest foreign supplier of these materials to the US.&nbsp;

Last week Canada’s finance minister said that he would not delay implementation of a digital services tax even as US trade talks continue. Any firm that makes more than $15 million off of Canadian internet users is subject to a 3% tax on those revenues.&nbsp;“We have just been informed that Canada, a very difficult Country to TRADE with, including the fact that they have charged our Farmers as much as 400% Tariffs, for years, on Dairy Products, 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 said on his Truth Social platform. “Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately.”&nbsp;Trump’s announcement reignites the trade war between the two neighbours, ending a period of some cordial relations following the election of Mark Carney as Canadian prime minister.

“Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump wrote. “We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period.”

US President Donald Trump said Friday that he had terminated all trade discussions with Canada, over what he called “egregious tariffs” on a digital services tax on American tech companies. In a post on Truth Social, Trump referred to Canada as “a very difficult country to trade with” and said that its levy on tech firms—the first payment for which is due Monday—“is a direct and blatant attack on our Country.” “Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump wrote. “We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period.” Canada is the second-largest trading partner of the United States. Currently, the US has a tariff rate of 25% applied to non-USMCA goods that are imported from Canada. That excludes energy products, on which Trump has applied a 10% tariff rate. Canada also bears much of the brunt of Trump’s 50% tax on steel and aluminum imports, as it is the largest foreign supplier of these materials to the US.

“Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump wrote. “We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period.”

Trump terminates trade talks with Canada, cites ‘egregious tariffs’ on US tech firms

Japan’s core consumer inflation in its capital slowed more than expected in June, driven by government relief on utility bills, but remained firmly above the central bank’s 2 per cent target, underscoring persistent price pressures in the world’s fourth-largest economy. Data released on Friday showed the Tokyo core consumer price index (CPI), which excludes volatile fresh food costs, rose 3.1 per cent in June compared with a year earlier. That was softer than May’s 3.6 per cent gain and below the median market forecast of 3.3 per cent, as per Reuters.&nbsp;The slowdown was largely attributed to the resumption of energy subsidies and temporary cuts to water charges in the city, aimed at helping households cope with soaring summer utility demand.<h2>Price pressures remain broad-based</h2>Despite the headline cooling, underlying price pressures in Japan’s export-reliant economy remain pronounced. A separate index that strips out both fresh food and fuel, a key measure closely watched by the Bank of Japan (BOJ) as an indicator of domestic demand-driven inflation also rose 3.1 per cent in June, after a 3.3 per cent increase in May.&nbsp;Marcel Thieliant, head of Asia-Pacific at Capital Economics, noted the underlying inflation trend remains well above the BOJ’s projections. “The slowdown in headline inflation in Tokyo in June partly reflects the resumption of energy subsidies,” he said. “With underlying inflation still running well ahead of the Bank of Japan’s forecasts, we still expect the Bank to hike rates in October.”<h2>Rising food costs hit households</h2>The data highlights the widening impact of inflation on Japanese households. The cost of food, excluding volatile items like vegetables, jumped 7.2 per cent in June from a year earlier, accelerating from May’s 6.9 per cent gain. Government figures showed particularly sharp increases for everyday staples: households in Tokyo paid 89 per cent more for rice than a year ago, 48 per cent more for a bar of chocolate, and 50 per cent more for a bag of coffee beans.&nbsp;Service-sector inflation, another area closely tracked by the BOJ, remained elevated at 2.1 per cent in June after hitting 2.2 per cent in the previous month, adding to evidence that price increases are spreading beyond imported raw materials to more domestically anchored sectors.<h2>Monetary policy under scrutiny</h2>The June inflation data will be a crucial factor in the Bank of Japan’s next policy meeting on July 30–31 when its board is set to issue fresh quarterly growth and price forecasts. Japan’s central bank, which ended its decade-long ultra-loose monetary policy last year, raised short-term interest rates to 0.5 per cent in January, the first increase since the era of negative rates began. Officials argued that inflation was on the verge of sustainably reaching the 2 per cent target.&nbsp;However, the economic backdrop has grown more complicated. The BOJ was forced to downgrade its growth forecasts in May, partly due to the impact of steep US tariffs that have threatened to hurt Japan’s export sector. While the BOJ has signalled readiness to continue raising rates if inflation risks intensify, the path ahead remains uncertain. Consumer inflation has exceeded the 2 per cent target for more than three years, as companies continue to pass on elevated raw material costs.Some central bank policymakers are already sounding a more hawkish note. Board member Naoki Tamura warned this week that the BOJ might need to act “decisively” if upside inflation risks strengthen. a sign that the pressure to normalise monetary policy further is unlikely to go away soon.&nbsp;&nbsp;For now, markets are watching carefully for signals from the central bank’s leadership, as Japan navigates the challenge of controlling inflation without stalling its still-fragile post-pandemic recovery.&nbsp;(With inputs from the agencies)&nbsp;

The Bank of Japan faces scrutiny ahead of its policy meeting, with potential interest rate hikes anticipated if inflation risks intensify. Economic complexities challenge efforts to manage inflation while supporting recovery.

Japan’s core consumer inflation in its capital slowed more than expected in June, driven by government relief on utility bills, but remained firmly above the central bank’s 2 per cent target, underscoring persistent price pressures in the world’s fourth-largest economy. Data released on Friday showed the Tokyo core consumer price index (CPI), which excludes volatile fresh food costs, rose 3.1 per cent in June compared with a year earlier. That was softer than May’s 3.6 per cent gain and below the median market forecast of 3.3 per cent, as per Reuters. The slowdown was largely attributed to the resumption of energy subsidies and temporary cuts to water charges in the city, aimed at helping households cope with soaring summer utility demand. Price pressures remain broad-based Despite the headline cooling, underlying price pressures in Japan’s export-reliant economy remain pronounced. A separate index that strips out both fresh food and fuel, a key measure closely watched by the Bank of Japan (BOJ) as an indicator of domestic demand-driven inflation also rose 3.1 per cent in June, after a 3.3 per cent increase in May. Marcel Thieliant, head of Asia-Pacific at Capital Economics, noted the underlying inflation trend remains well above the BOJ’s projections. “The slowdown in headline inflation in Tokyo in June partly reflects the resumption of energy subsidies,” he said. “With underlying inflation still running well ahead of the Bank of Japan’s forecasts, we still expect the Bank to hike rates in October.” Rising food costs hit households The data highlights the widening impact of inflation on Japanese households. The cost of food, excluding volatile items like vegetables, jumped 7.2 per cent in June from a year earlier, accelerating from May’s 6.9 per cent gain. Government figures showed particularly sharp increases for everyday staples: households in Tokyo paid 89 per cent more for rice than a year ago, 48 per cent more for a bar of chocolate, and 50 per cent more for a bag of coffee beans. Service-sector inflation, another area closely tracked by the BOJ, remained elevated at 2.1 per cent in June after hitting 2.2 per cent in the previous month, adding to evidence that price increases are spreading beyond imported raw materials to more domestically anchored sectors. Monetary policy under scrutiny The June inflation data will be a crucial factor in the Bank of Japan’s next policy meeting on July 30–31 when its board is set to issue fresh quarterly growth and price forecasts. Japan’s central bank, which ended its decade-long ultra-loose monetary policy last year, raised short-term interest rates to 0.5 per cent in January, the first increase since the era of negative rates began. Officials argued that inflation was on the verge of sustainably reaching the 2 per cent target. However, the economic backdrop has grown more complicated. The BOJ was forced to downgrade its growth forecasts in May, partly due to the impact of steep US tariffs that have threatened to hurt Japan’s export sector. While the BOJ has signalled readiness to continue raising rates if inflation risks intensify, the path ahead remains uncertain. Consumer inflation has exceeded the 2 per cent target for more than three years, as companies continue to pass on elevated raw material costs. Some central bank policymakers are already sounding a more hawkish note. Board member Naoki Tamura warned this week that the BOJ might need to act “decisively” if upside inflation risks strengthen. a sign that the pressure to normalise monetary policy further is unlikely to go away soon. For now, markets are watching carefully for signals from the central bank’s leadership, as Japan navigates the challenge of controlling inflation without stalling its still-fragile post-pandemic recovery. (With inputs from the agencies)

Japan's core consumer inflation in Tokyo slowed to 3.1% in June, down from May's 3.6%, influenced by government utility bill relief. This figure remains above the central bank's 2% target, reflecting ongoing price pressures.

Japan’s core inflation slows in Tokyo but stays above BOJ’s 2% target

The United States and the European Union are close to finalising a deal that addresses a raft of long-standing non-tariff trade frictions, including climate regulations, digital market rules, and supply chain concerns.&nbsp;&nbsp;However, key tariff-related issues, including those threatened or imposed under President Donald Trump remain unresolved ahead of a critical July deadline.&nbsp;&nbsp;The developments were first reported by Bloomberg, citing a draft agreement circulated by the Office of the US Trade Representative (USTR).<h2>What’s in the draft deal?</h2>According to Bloomberg, the draft “agreement on reciprocal trade” outlines tentative compromises on multiple regulatory fronts. The EU has agreed to delay enforcement of its new deforestation regulation for one year, giving global companies more time to comply.&nbsp;&nbsp;The policy requires importers to prove their products are not linked to deforestation, a regulation that has faced resistance from US exporters and European businesses alike. The delay had already been internally decided by the EU last year but now forms part of the broader trade dialogue.&nbsp;The draft also includes provisions to pause enforcement of the EU’s Digital Markets Act (DMA) on major American tech platforms while structured negotiations are ongoing. The DMA, one of the EU’s flagship digital competition laws, has already resulted in hefty fines for US firms such as Apple and Meta.&nbsp;&nbsp;The exemption would ease transatlantic tensions over what Washington has called discriminatory enforcement.&nbsp;Another key clause in the draft agreement offers US products a one-year exemption from the EU’s Carbon Border Adjustment Mechanism (CBAM), a climate tariff designed to reflect the carbon intensity of imports. This exemption would give US exporters temporary relief from one of Europe’s most contentious climate policies.&nbsp;The agreement further proposes exemptions for US energy exports from upcoming EU methane rules and suggests that both parties coordinate their policies on shipbuilding and maritime shipping. Specifically, the EU would consider adopting measures similar to US penalties targeting non-market economies, particularly China.&nbsp;&nbsp;The draft text also encourages joint efforts on defence procurement and critical minerals, highlighting a shared commitment to reduce dependency on Chinese supply chains. As reported by Bloomberg, the overall aim is to streamline transatlantic coordination on strategic industries.<h2>Tariff tensions still unresolved</h2>Despite progress on regulatory matters, the draft agreement reportedly omits any resolution of US–EU tariff disputes.&nbsp;&nbsp;As per Bloomberg, it does not mention the 20 per cent reciprocal tariff that President Trump threatened and temporarily paused in April nor does it address ongoing duties on EU steel, aluminium, and automotive exports.&nbsp;&nbsp;Likewise, the agreement does not include a response to the EU’s planned retaliatory tariffs, scheduled to take effect on 14 July if no deal is reached.&nbsp;While negotiations continue, it remains unclear whether tariff issues are being handled in a parallel track or have stalled.&nbsp;&nbsp;According to Bloomberg, US Trade Representative Jamieson Greer earlier described the EU’s initial proposal which included offers to buy more US goods like liquefied natural gas as a “credible starting point.” However, the most recent draft agreement appears focused solely on non-tariff barriers.&nbsp;European officials have told Bloomberg that any deal perceived as offering one-sided concessions to the US would face public and political resistance.&nbsp;&nbsp;Some have also signalled that maintaining Trump’s baseline 10 per cent tariffs could be a red line, though expectations are growing that these tariffs may not be removed under any circumstances, given Trump’s public defence of tariff revenue as a national economic tool.<h2>Why it matters?</h2>The agreement, if finalised, would mark a significant step toward easing transatlantic trade tensions in non-tariff areas that have burdened US exporters, especially in technology and energy.&nbsp;&nbsp;It also reflects growing alignment on environmental and industrial policy in response to Chinese trade practices.&nbsp;However, the absence of a tariff breakthrough underscores the deep political and economic divide that still defines US–EU trade relations.&nbsp;&nbsp;As quoted by Bloomberg, an EU spokesperson confirmed that both sides remain “fully and deeply engaged in negotiations,” but stopped short of confirming agreement on the full text.&nbsp;&nbsp;With President Trump’s 9 July tariff deadline approaching and the EU’s retaliatory measures due shortly after, the clock is ticking for a comprehensive settlement that addresses both regulatory and tariff concerns.&nbsp;&nbsp;(With inputs from the agencies) &nbsp;

US–EU trade pact nears finalisation with compromises on climate rules, digital markets, and supply chains. But major tariff disputes, including Trump threatened duties, remain unresolved as July deadlines loom.

The United States and the European Union are close to finalising a deal that addresses a raft of long-standing non-tariff trade frictions, including climate regulations, digital market rules, and supply chain concerns. However, key tariff-related issues, including those threatened or imposed under President Donald Trump remain unresolved ahead of a critical July deadline. The developments were first reported by Bloomberg, citing a draft agreement circulated by the Office of the US Trade Representative (USTR). What’s in the draft deal? According to Bloomberg, the draft “agreement on reciprocal trade” outlines tentative compromises on multiple regulatory fronts. The EU has agreed to delay enforcement of its new deforestation regulation for one year, giving global companies more time to comply. The policy requires importers to prove their products are not linked to deforestation, a regulation that has faced resistance from US exporters and European businesses alike. The delay had already been internally decided by the EU last year but now forms part of the broader trade dialogue. The draft also includes provisions to pause enforcement of the EU’s Digital Markets Act (DMA) on major American tech platforms while structured negotiations are ongoing. The DMA, one of the EU’s flagship digital competition laws, has already resulted in hefty fines for US firms such as Apple and Meta. The exemption would ease transatlantic tensions over what Washington has called discriminatory enforcement. Another key clause in the draft agreement offers US products a one-year exemption from the EU’s Carbon Border Adjustment Mechanism (CBAM), a climate tariff designed to reflect the carbon intensity of imports. This exemption would give US exporters temporary relief from one of Europe’s most contentious climate policies. The agreement further proposes exemptions for US energy exports from upcoming EU methane rules and suggests that both parties coordinate their policies on shipbuilding and maritime shipping. Specifically, the EU would consider adopting measures similar to US penalties targeting non-market economies, particularly China. The draft text also encourages joint efforts on defence procurement and critical minerals, highlighting a shared commitment to reduce dependency on Chinese supply chains. As reported by Bloomberg, the overall aim is to streamline transatlantic coordination on strategic industries. Tariff tensions still unresolved Despite progress on regulatory matters, the draft agreement reportedly omits any resolution of US–EU tariff disputes. As per Bloomberg, it does not mention the 20 per cent reciprocal tariff that President Trump threatened and temporarily paused in April nor does it address ongoing duties on EU steel, aluminium, and automotive exports. Likewise, the agreement does not include a response to the EU’s planned retaliatory tariffs, scheduled to take effect on 14 July if no deal is reached. While negotiations continue, it remains unclear whether tariff issues are being handled in a parallel track or have stalled. According to Bloomberg, US Trade Representative Jamieson Greer earlier described the EU’s initial proposal which included offers to buy more US goods like liquefied natural gas as a “credible starting point.” However, the most recent draft agreement appears focused solely on non-tariff barriers. European officials have told Bloomberg that any deal perceived as offering one-sided concessions to the US would face public and political resistance. Some have also signalled that maintaining Trump’s baseline 10 per cent tariffs could be a red line, though expectations are growing that these tariffs may not be removed under any circumstances, given Trump’s public defence of tariff revenue as a national economic tool. Why it matters? The agreement, if finalised, would mark a significant step toward easing transatlantic trade tensions in non-tariff areas that have burdened US exporters, especially in technology and energy. It also reflects growing alignment on environmental and industrial policy in response to Chinese trade practices. However, the absence of a tariff breakthrough underscores the deep political and economic divide that still defines US–EU trade relations. As quoted by Bloomberg, an EU spokesperson confirmed that both sides remain “fully and deeply engaged in negotiations,” but stopped short of confirming agreement on the full text. With President Trump’s 9 July tariff deadline approaching and the EU’s retaliatory measures due shortly after, the clock is ticking for a comprehensive settlement that addresses both regulatory and tariff concerns. (With inputs from the agencies)

The US and EU are nearing a trade deal easing key regulatory frictions, but tariff disputes—especially Trump-era duties—remain unresolved ahead of July deadlines, Bloomberg reports.

US–EU near trade deal, but tariff rift remains: Details here

A key US trade exemption is gone, and Chinese exporters are paying the price.&nbsp;Chinese exports of low-value parcels to the United States plunged 40 per cent in May year-on-year, falling to just over $1 billion, the lowest level since early 2023, according to customs data released on Friday by China’s General Administration of Customs, as reported by Bloomberg News.&nbsp;The sudden drop follows the end of the “de minimis” tariff exemption, a rule that had allowed individual packages under $800 to enter the US duty-free. That policy, long exploited by fast-fashion giants like Shein and e-commerce firm Temu, was scrapped by the Trump administration on May 2 as part of a broader crackdown on Chinese&nbsp;imports.<h2>Trade route disrupted</h2>For years, the de minimis loophole powered a booming, direct-to-consumer trade route between China and the US. It enabled small Chinese merchants and large online platforms to bypass traditional tariffs and ship directly to American doorsteps.&nbsp;That model has now been upended. New tariffs, which can go as high as 54 per cent, are forcing Chinese exporters to restructure their logistics, raise prices, or abandon the US market altogether.<h2>Exporters feel the pinch</h2>Chinese entrepreneurs say the new rules have squeezed margins and cut off access to the world’s largest consumer market.&nbsp;Wang Yuhao, who runs incense brand Shantivale from Kunming, told Bloomberg that the new tariffs and shipping fees would cost him $2 per parcel, enough to make his US sales unviable. To adapt, he has had to invest over 100,000 yuan ($13,800) to ship in bulk and store goods in US warehouses.“It’s a lose-lose situation,” he said. “It means tougher business for us, fewer options for US consumers, and potentially higher prices.<h2>Shein, Temu hit by double-digit decline</h2>Major platforms weren’t spared. According to Bloomberg News, Shein raised prices on US-bound items such as dresses and homeware in the run-up to the tariff hike.&nbsp;In the first week after the new rules came into effect, both Shein and Temu reportedly suffered double-digit drops in US sales, a sign that cost-sensitive American shoppers may already be turning away.&nbsp;Even so, the United States remained the largest destination for Chinese small parcels in May, followed by Malaysia, which took in over $700 million worth of such shipments.<h2>Global small parcel exports still rising</h2>Despite the US drop, China’s overall small parcel exports remain robust. In May, global shipments of low-value parcels rose 40 per cent year-on-year, with countries like Belgium, South Korea, Hong Kong, and Hungary emerging as key alternative markets.&nbsp;But the decline in US-bound packages signals deeper friction in China–US trade, particularly as Trump-era protectionism gains traction in Washington ahead of the 2025 elections.&nbsp;<h2>Strategic recalibration underway</h2>The closure of the de minimis loophole is being seen as part of a broader effort by the US to curb Chinese e-commerce dominance, especially in low-cost consumer goods.&nbsp;While some Chinese merchants are adapting through bulk warehousing, regional pivots, or platform consolidation, analysts say the policy shift could permanently alter the structure of cross-border e-commerce between the world’s two largest&nbsp;economies.&nbsp;(With inputs from the agencies)&nbsp;

This exemption, exploited by companies like Shein and Temu, allowed packages under $800 to enter duty-free, but its removal has forced exporters to restructure and raise prices. 

A key US trade exemption is gone, and Chinese exporters are paying the price. Chinese exports of low-value parcels to the United States plunged 40 per cent in May year-on-year, falling to just over $1 billion, the lowest level since early 2023, according to customs data released on Friday by China’s General Administration of Customs, as reported by Bloomberg News. The sudden drop follows the end of the “de minimis” tariff exemption, a rule that had allowed individual packages under $800 to enter the US duty-free. That policy, long exploited by fast-fashion giants like Shein and e-commerce firm Temu, was scrapped by the Trump administration on May 2 as part of a broader crackdown on Chinese imports. Trade route disrupted For years, the de minimis loophole powered a booming, direct-to-consumer trade route between China and the US. It enabled small Chinese merchants and large online platforms to bypass traditional tariffs and ship directly to American doorsteps. That model has now been upended. New tariffs, which can go as high as 54 per cent, are forcing Chinese exporters to restructure their logistics, raise prices, or abandon the US market altogether. Exporters feel the pinch Chinese entrepreneurs say the new rules have squeezed margins and cut off access to the world’s largest consumer market. Wang Yuhao, who runs incense brand Shantivale from Kunming, told Bloomberg that the new tariffs and shipping fees would cost him $2 per parcel, enough to make his US sales unviable. To adapt, he has had to invest over 100,000 yuan ($13,800) to ship in bulk and store goods in US warehouses. “It’s a lose-lose situation,” he said. “It means tougher business for us, fewer options for US consumers, and potentially higher prices. Shein, Temu hit by double-digit decline Major platforms weren’t spared. According to Bloomberg News, Shein raised prices on US-bound items such as dresses and homeware in the run-up to the tariff hike. In the first week after the new rules came into effect, both Shein and Temu reportedly suffered double-digit drops in US sales, a sign that cost-sensitive American shoppers may already be turning away. Even so, the United States remained the largest destination for Chinese small parcels in May, followed by Malaysia, which took in over $700 million worth of such shipments. Global small parcel exports still rising Despite the US drop, China’s overall small parcel exports remain robust. In May, global shipments of low-value parcels rose 40 per cent year-on-year, with countries like Belgium, South Korea, Hong Kong, and Hungary emerging as key alternative markets. But the decline in US-bound packages signals deeper friction in China–US trade, particularly as Trump-era protectionism gains traction in Washington ahead of the 2025 elections. Strategic recalibration underway The closure of the de minimis loophole is being seen as part of a broader effort by the US to curb Chinese e-commerce dominance, especially in low-cost consumer goods. While some Chinese merchants are adapting through bulk warehousing, regional pivots, or platform consolidation, analysts say the policy shift could permanently alter the structure of cross-border e-commerce between the world’s two largest economies. (With inputs from the agencies)

Chinese exports of low-value parcels to the US dropped 40% in May, falling to just over $1 billion, the lowest since early 2023, following the end of the "de minimis" tariff exemption on May 2.

US tariff hike slashes China’s small parcel exports by 40% in May

In a move that rewrites the future of American steelmaking, US President Donald Trump has formally approved Nippon Steel’s $14.9 billion acquisition of US Steel, ending months of political drama, union backlash, and national security reviews.&nbsp;Trump signed an executive order on Friday, giving the green light to the controversial merger on the condition that both companies sign an agreement with the US Treasury to address national security concerns, as reported by Reuters.&nbsp;&nbsp;Within hours, Nippon Steel and US Steel confirmed they had signed the agreement, satisfying the final regulatory hurdle.&nbsp;“We look forward to putting our commitments into action to make American steelmaking and manufacturing great again,” the companies said in a joint statement, thanking President Trump, as quoted by Reuters.<h2>$11 billion investment promise and a golden share mystery</h2>As per Reuters, the agreement includes $11 billion in new investments by 2028 into US operations. Nippon Steel is also expected to invest an additional $3 billion in a new mill after 2028, a move designed to strengthen its footprint in American infrastructure.&nbsp;The merger agreement reportedly outlines commitments on governance, production, and trade, but left investors puzzled by the lack of detail on the promised “golden share”, which would supposedly grant veto power to the US government over major decisions.&nbsp;&nbsp;As per Reuters, US Senator David McCormick stated last month that the golden share would give Washington direct oversight, particularly critical given US Steel’s deep roots in Pennsylvania, a key swing state.<h2>From Biden’s rejection to Trump’s reversal</h2>The deal’s approval caps a volatile 18-month saga. Nippon Steel first announced the takeover bid in December 2023, but the United Steelworkers union quickly opposed it, warning of job losses and foreign control, as reported by Reuters.&nbsp;In January 2024, then-President Joe Biden blocked the deal on national security grounds. The companies responded with legal challenges, claiming the review process under Biden was flawed and biased again, as per Reuters.&nbsp;With Trump returning to the White House in January 2025, the companies gained a new opportunity. In April, his administration launched a 45-day national security review of the merger — as reported by Reuters, which culminated in Friday’s conditional approval.<h2>A global move in a high-stakes steel war</h2>According to Reuters, for Nippon Steel, the world’s fourth-largest steelmaker, gaining access to the US market is critical, particularly as global steel trade tensions escalate.&nbsp;&nbsp;By acquiring US Steel, the Japanese firm avoids 50 per cent tariffs currently imposed on foreign competitors and positions itself to benefit from America’s expanding infrastructure projects.&nbsp;The deal also helps Nippon Steel escape $565 million in breakup fees, which it would have owed if the deal failed, as per Reuters.&nbsp;Welcoming the development, Japan’s Economy, Trade and Industry Minister Yoji Muto issued a statement on Saturday: “The government of Japan welcomes the US government’s decision… this investment will enhance innovation capabilities in the US and Japanese steel industries," as quoted by Reuters.&nbsp;The timing also aligns with Tokyo’s effort to finalise a US-Japan trade deal ahead of the G7 summit, where Trump is expected to meet Prime Minister Shigeru Ishiba, as per Reuters.<h2>Investors still uneasy</h2>Despite the approval, investor sentiment remains mixed.&nbsp;&nbsp;According to Reuters, US Steel shares dipped earlier on Friday after a Nippon Steel executive told Nikkei that the takeover would require “a degree of management freedom," a statement seen by many as conflicting with Trump’s previous assertion that the US would maintain control through the golden share.&nbsp;Trump had earlier referred to Nippon as a “great partner” during a rally on May 30, where he gave vague approval to an “investment," as reported by Reuters.&nbsp;The Friday order finally clarified that Nippon Steel will acquire a 100 per cent stake in US Steel, as per a spokesperson quoted by Reuters, effectively handing control of a century-old American industrial icon to Japanese ownership.<h2>Steel, politics, and symbolism</h2>For Trump, the approval of this deal is both economic and symbolic. While union disapproval and political risks were apparent, especially in swing states like Pennsylvania, the multi-billion-dollar investment commitment offers political cover. Trump is expected to highlight the merger as evidence of foreign investment flowing into the US under his watch.&nbsp;For Nippon Steel, the deal represents a bold step in its global strategy, but with long-term financial and political implications.&nbsp;&nbsp;As the Reuters report suggests, the company may face short-term pressure from investors worried about the scale of its commitments.&nbsp;Whether the mysterious golden share grants real control to the US or simply satisfies political optics remains an open question. &nbsp;(With inputs from the agencies) &nbsp;

Trump greenlights Nippon Steel’s acquisition of US Steel with an $11 billion investment pledge and national security safeguards, ending a politically charged 18-month saga.

In a move that rewrites the future of American steelmaking, US President Donald Trump has formally approved Nippon Steel’s $14.9 billion acquisition of US Steel, ending months of political drama, union backlash, and national security reviews. Trump signed an executive order on Friday, giving the green light to the controversial merger on the condition that both companies sign an agreement with the US Treasury to address national security concerns, as reported by Reuters. Within hours, Nippon Steel and US Steel confirmed they had signed the agreement, satisfying the final regulatory hurdle. “We look forward to putting our commitments into action to make American steelmaking and manufacturing great again,” the companies said in a joint statement, thanking President Trump, as quoted by Reuters. $11 billion investment promise and a golden share mystery As per Reuters, the agreement includes $11 billion in new investments by 2028 into US operations. Nippon Steel is also expected to invest an additional $3 billion in a new mill after 2028, a move designed to strengthen its footprint in American infrastructure. The merger agreement reportedly outlines commitments on governance, production, and trade, but left investors puzzled by the lack of detail on the promised “golden share”, which would supposedly grant veto power to the US government over major decisions. As per Reuters, US Senator David McCormick stated last month that the golden share would give Washington direct oversight, particularly critical given US Steel’s deep roots in Pennsylvania, a key swing state. From Biden’s rejection to Trump’s reversal The deal’s approval caps a volatile 18-month saga. Nippon Steel first announced the takeover bid in December 2023, but the United Steelworkers union quickly opposed it, warning of job losses and foreign control, as reported by Reuters. In January 2024, then-President Joe Biden blocked the deal on national security grounds. The companies responded with legal challenges, claiming the review process under Biden was flawed and biased again, as per Reuters. With Trump returning to the White House in January 2025, the companies gained a new opportunity. In April, his administration launched a 45-day national security review of the merger — as reported by Reuters, which culminated in Friday’s conditional approval. A global move in a high-stakes steel war According to Reuters, for Nippon Steel, the world’s fourth-largest steelmaker, gaining access to the US market is critical, particularly as global steel trade tensions escalate. By acquiring US Steel, the Japanese firm avoids 50 per cent tariffs currently imposed on foreign competitors and positions itself to benefit from America’s expanding infrastructure projects. The deal also helps Nippon Steel escape $565 million in breakup fees, which it would have owed if the deal failed, as per Reuters. Welcoming the development, Japan’s Economy, Trade and Industry Minister Yoji Muto issued a statement on Saturday: “The government of Japan welcomes the US government’s decision… this investment will enhance innovation capabilities in the US and Japanese steel industries," as quoted by Reuters. The timing also aligns with Tokyo’s effort to finalise a US-Japan trade deal ahead of the G7 summit, where Trump is expected to meet Prime Minister Shigeru Ishiba, as per Reuters. Investors still uneasy Despite the approval, investor sentiment remains mixed. According to Reuters, US Steel shares dipped earlier on Friday after a Nippon Steel executive told Nikkei that the takeover would require “a degree of management freedom," a statement seen by many as conflicting with Trump’s previous assertion that the US would maintain control through the golden share. Trump had earlier referred to Nippon as a “great partner” during a rally on May 30, where he gave vague approval to an “investment," as reported by Reuters. The Friday order finally clarified that Nippon Steel will acquire a 100 per cent stake in US Steel, as per a spokesperson quoted by Reuters, effectively handing control of a century-old American industrial icon to Japanese ownership. Steel, politics, and symbolism For Trump, the approval of this deal is both economic and symbolic. While union disapproval and political risks were apparent, especially in swing states like Pennsylvania, the multi-billion-dollar investment commitment offers political cover. Trump is expected to highlight the merger as evidence of foreign investment flowing into the US under his watch. For Nippon Steel, the deal represents a bold step in its global strategy, but with long-term financial and political implications. As the Reuters report suggests, the company may face short-term pressure from investors worried about the scale of its commitments. Whether the mysterious golden share grants real control to the US or simply satisfies political optics remains an open question. (With inputs from the agencies)

President Trump has approved Nippon Steel’s $14.9 billion takeover of US Steel, sealing a landmark deal with conditions to address national security concerns.

Trump clears Nippon Steel’s $14.9 billion takeover of US Steel after 18-month battle

Apple is going all in on India—and it’s not just about production anymore. It’s about survival.&nbsp;Between March and May this year, a staggering 97 per cent of iPhones exported by Apple supplier Foxconn from India were shipped to the United States, according to exclusive customs data reported by Reuters.&nbsp;&nbsp;That’s nearly double the usual average and signals a strategic redirection: Apple is now using India as its primary export base to dodge rising US tariffs on China.<h2>India to US: A one-way iPhone highway</h2>The numbers are eye-opening. Foxconn’s iPhone exports from India touched $3.2 billion in just three months. Almost all of it went to the US—up from a 2024 average of just 50 per cent.&nbsp;And May 2025 alone saw exports worth nearly $1 billion, marking the second-biggest monthly shipment ever, after the March peak of $1.3 billion.&nbsp;This shift underscores how Apple is repositioning India not just as a backup to China, but as a front-line base to serve its most lucrative market.<h2>Trump’s new tariffs trigger supply chain panic</h2>At the heart of this pivot lies a political shockwave. US President Donald Trump announced a 55 per cent tariff on Chinese goods earlier this week, escalating the trade standoff with Beijing.&nbsp;India, in contrast, faces only a 10 per cent baseline duty—though it’s still lobbying Washington to scrap a proposed 26 per cent ‘reciprocal’ levy, which Trump had temporarily put on hold.&nbsp;Caught in the crossfire, Apple is racing to protect its bottom line. With over 60 million iPhones sold annually in the US, staying dependent on Chinese manufacturing would spell crippling price hikes for American consumers.<h2>From Chennai to California: Apple speeds things up</h2>Apple isn’t just shifting where it builds—it’s overhauling how fast it delivers.&nbsp;To accelerate India-based exports, Apple chartered cargo planes to fly out billions of dollars’ worth of iPhones—including the latest iPhone 13, 14, 16 and 16e models—directly to the US.&nbsp;The company has also pushed for faster customs clearance at Chennai airport, lobbying authorities to cut processing times from 30 hours to just 6 hours, Reuters had earlier reported.<h2>India’s rise—and its cost</h2>Analysts say the export boom is just the beginning.&nbsp;“We expect iPhones made in India to account for 25 to 30 per cent of global shipments this year, up from 18 per cent in 2024,” said Prachir Singh, senior analyst at Counterpoint Research, quoted by Reuters.&nbsp;But India’s rise as a smartphone hub still faces hurdles. High duties on imported components continue to inflate production costs, limiting India’s appeal as a full-scale manufacturing alternative to China.<h2>Trump vs Apple</h2>Despite the export gains, Apple isn’t exactly winning praise from Washington.&nbsp;In May, Trump publicly criticised Apple CEO Tim Cook for expanding in India.&nbsp;“We’re not interested in you building in India. India can take care of themselves. We want you to build here,” Trump reportedly told Cook, as cited by Reuters.&nbsp;The message is clear: Washington wants iPhones made in America. But for now, India is Apple’s best bet to keep prices stable in its largest market.&nbsp;Apple’s India strategy has taken on new urgency. Once seen as a slow but steady ‘China plus one’ option, India is now the epicentre of Apple’s trade war survival strategy.&nbsp;&nbsp;With production lines humming and exports climbing, the world’s most valuable company is betting big on Indian soil—even if it ruffles feathers in the White House.&nbsp;(With inputs from the agencies) &nbsp;

As US-China trade tensions escalate, Apple shifts production to India, exporting $3.2 billion worth of iPhones in three months to avoid new tariffs and protect its US market.

Apple is going all in on India—and it’s not just about production anymore. It’s about survival. Between March and May this year, a staggering 97 per cent of iPhones exported by Apple supplier Foxconn from India were shipped to the United States, according to exclusive customs data reported by Reuters. That’s nearly double the usual average and signals a strategic redirection: Apple is now using India as its primary export base to dodge rising US tariffs on China. India to US: A one-way iPhone highway The numbers are eye-opening. Foxconn’s iPhone exports from India touched $3.2 billion in just three months. Almost all of it went to the US—up from a 2024 average of just 50 per cent. And May 2025 alone saw exports worth nearly $1 billion, marking the second-biggest monthly shipment ever, after the March peak of $1.3 billion. This shift underscores how Apple is repositioning India not just as a backup to China, but as a front-line base to serve its most lucrative market. Trump’s new tariffs trigger supply chain panic At the heart of this pivot lies a political shockwave. US President Donald Trump announced a 55 per cent tariff on Chinese goods earlier this week, escalating the trade standoff with Beijing. India, in contrast, faces only a 10 per cent baseline duty—though it’s still lobbying Washington to scrap a proposed 26 per cent ‘reciprocal’ levy, which Trump had temporarily put on hold. Caught in the crossfire, Apple is racing to protect its bottom line. With over 60 million iPhones sold annually in the US, staying dependent on Chinese manufacturing would spell crippling price hikes for American consumers. From Chennai to California: Apple speeds things up Apple isn’t just shifting where it builds—it’s overhauling how fast it delivers. To accelerate India-based exports, Apple chartered cargo planes to fly out billions of dollars’ worth of iPhones—including the latest iPhone 13, 14, 16 and 16e models—directly to the US. The company has also pushed for faster customs clearance at Chennai airport, lobbying authorities to cut processing times from 30 hours to just 6 hours, Reuters had earlier reported. India’s rise—and its cost Analysts say the export boom is just the beginning. “We expect iPhones made in India to account for 25 to 30 per cent of global shipments this year, up from 18 per cent in 2024,” said Prachir Singh, senior analyst at Counterpoint Research, quoted by Reuters. But India’s rise as a smartphone hub still faces hurdles. High duties on imported components continue to inflate production costs, limiting India’s appeal as a full-scale manufacturing alternative to China. Trump vs Apple Despite the export gains, Apple isn’t exactly winning praise from Washington. In May, Trump publicly criticised Apple CEO Tim Cook for expanding in India. “We’re not interested in you building in India. India can take care of themselves. We want you to build here,” Trump reportedly told Cook, as cited by Reuters. The message is clear: Washington wants iPhones made in America. But for now, India is Apple’s best bet to keep prices stable in its largest market. Apple’s India strategy has taken on new urgency. Once seen as a slow but steady ‘China plus one’ option, India is now the epicentre of Apple’s trade war survival strategy. With production lines humming and exports climbing, the world’s most valuable company is betting big on Indian soil—even if it ruffles feathers in the White House. (With inputs from the agencies)

Apple ramps up iPhone exports from India to the US, turning the country into its primary manufacturing hub amid Trump’s steep China tariffs.&nbsp;

Foxconn ships 97% of India-made iPhones to US as Apple dodges Trump's China tariffs

Chinese fast-fashion powerhouse Shein is under intensifying global scrutiny, with European consumer watchdogs accusing it of manipulating online shoppers through unethical design tactics, while new tariff policies in the US threaten its cost-driven model.&nbsp;&nbsp;The pan-European Consumer Organization BEUC has now formally lodged a complaint with EU authorities, alleging that Shein uses “dark patterns” to pressure users into overspending. a move that may further destabilise the retail giant, already hit by regulatory and trade headwinds.<h2>BEUC files formal complaint over ‘manipulative’ sales tactics</h2>In a 29-page dossier submitted to the European Commission, BEUC,&nbsp;which represents consumer organisations in 21 countries,&nbsp;has detailed what it calls a widespread use of “dark patterns” on Shein’s platform. These include fake countdown timers, low-stock alerts, forced sign-ups, and “confirm shaming,” a practice that induces guilt in consumers who opt not to buy a product.&nbsp;According to BEUC, these tactics constitute “unfair commercial practice” that misleads consumers into overconsumption and undermines environmental sustainability. In its statement quoted by Reuters, BEUC urged regulators to force Shein to provide data behind its claims, such as “only 2 left in stock” or ongoing flash sales. If the company cannot provide such evidence, the watchdog says Shein must immediately stop these marketing ploys across the EU.&nbsp;“Shein’s practices are driving consumers to fill their wardrobes with clothes they barely use — often made with harmful chemicals — thereby worsening the social and environmental costs of fast fashion,” BEUC said in its complaint.&nbsp;Shein responded by criticising the consumer group’s unwillingness to engage in dialogue, calling it “extremely disappointing” given the brand’s popularity across Europe.<h2>Past EU crackdown on Shein&nbsp;</h2>This is not Shein’s first clash with European authorities. On 27 May, the European Commission and national regulators from Belgium, France, Ireland, and the Netherlands issued a stern warning to the company, citing breaches of EU law related to fake discounts, pressure selling, and deceptive product labels.&nbsp;As per Reuters, the investigation found that Shein routinely inflated original prices to exaggerate the value of discounts. It also accused the company of falsely advertising products as sustainable without verified environmental credentials — misleading shoppers trying to make conscious choices.Shein was also found to be obstructing customer support access and providing unclear information about return and refund processes, in violation of core EU consumer rights.&nbsp;&nbsp;The Commission has given Shein until 26 June to respond and propose corrective actions. Failing this, it could face fines proportionate to its annual turnover within the EU.<h2>Digital dominance under threat</h2>Shein’s sprawling presence in the EU, with nearly 100 million monthly users, according to figures cited by Business Insider,&nbsp;places it firmly in the crosshairs of European regulators. The company is also under watch under the EU’s new Digital Services Act (DSA), which imposes strict compliance measures on very large online platforms.&nbsp;Adding to its challenges, the EU is preparing a €2 handling fee per parcel on low-value e-commerce shipments — a move widely seen as targeting high-volume, low-margin sellers like Shein, as per Reuters.<h2>Trump-era tariffs and new US rules deepen the crisis</h2>Regulatory woes aren’t confined to Europe. In April, Shein announced price hikes, blaming changes in global trade regulations and tariffs. The move came shortly after US President Donald Trump reimposed stiff tariffs on low-cost imports and closed the so-called de minimis loophole,&nbsp;which had allowed goods valued under $800 to enter the US duty-free.&nbsp;As reported by Business Insider, this change directly affects Shein’s business model, which thrives on shipping low-cost individual parcels from China directly to US consumers.&nbsp;&nbsp;The policy reversal is expected to dent Shein’s profit margins, increase shipping costs, and slow down order fulfilment,&nbsp;making it harder to maintain the ultra-fast, ultra-cheap appeal that built its global empire.<h2>What lies ahead?</h2>With the EU deadline of 26 June fast approaching and heightened trade scrutiny in the US, Shein is under pressure to prove that it can adapt. EU authorities have made it clear: unless the company offers meaningful reforms, enforcement actions will follow,&nbsp;including steep financial penalties.&nbsp;According to Reuters, national regulators have the mandate to take legal steps if Shein's response fails to satisfy consumer law requirements.&nbsp;As Shein walks a regulatory tightrope across continents, its future may depend on more than just trendy clothing and flash sales. Its ability to survive this growing storm will now hinge on transparency, reform, and cooperation with the very markets that powered its rise.&nbsp;&nbsp;(With inputs from the agencies)&nbsp;

This is not Shein first clash with European authorities. On 27 May, the European Commission issued a stern warning to the company, citing breaches of EU law related to fake discounts, pressure selling, and deceptive product labels.

Chinese fast-fashion powerhouse Shein is under intensifying global scrutiny, with European consumer watchdogs accusing it of manipulating online shoppers through unethical design tactics, while new tariff policies in the US threaten its cost-driven model. The pan-European Consumer Organization BEUC has now formally lodged a complaint with EU authorities, alleging that Shein uses “dark patterns” to pressure users into overspending. a move that may further destabilise the retail giant, already hit by regulatory and trade headwinds. BEUC files formal complaint over ‘manipulative’ sales tactics In a 29-page dossier submitted to the European Commission, BEUC, which represents consumer organisations in 21 countries, has detailed what it calls a widespread use of “dark patterns” on Shein’s platform. These include fake countdown timers, low-stock alerts, forced sign-ups, and “confirm shaming,” a practice that induces guilt in consumers who opt not to buy a product. According to BEUC, these tactics constitute “unfair commercial practice” that misleads consumers into overconsumption and undermines environmental sustainability. In its statement quoted by Reuters, BEUC urged regulators to force Shein to provide data behind its claims, such as “only 2 left in stock” or ongoing flash sales. If the company cannot provide such evidence, the watchdog says Shein must immediately stop these marketing ploys across the EU. “Shein’s practices are driving consumers to fill their wardrobes with clothes they barely use — often made with harmful chemicals — thereby worsening the social and environmental costs of fast fashion,” BEUC said in its complaint. Shein responded by criticising the consumer group’s unwillingness to engage in dialogue, calling it “extremely disappointing” given the brand’s popularity across Europe. Past EU crackdown on Shein This is not Shein’s first clash with European authorities. On 27 May, the European Commission and national regulators from Belgium, France, Ireland, and the Netherlands issued a stern warning to the company, citing breaches of EU law related to fake discounts, pressure selling, and deceptive product labels. As per Reuters, the investigation found that Shein routinely inflated original prices to exaggerate the value of discounts. It also accused the company of falsely advertising products as sustainable without verified environmental credentials — misleading shoppers trying to make conscious choices. Shein was also found to be obstructing customer support access and providing unclear information about return and refund processes, in violation of core EU consumer rights. The Commission has given Shein until 26 June to respond and propose corrective actions. Failing this, it could face fines proportionate to its annual turnover within the EU. Digital dominance under threat Shein’s sprawling presence in the EU, with nearly 100 million monthly users, according to figures cited by Business Insider, places it firmly in the crosshairs of European regulators. The company is also under watch under the EU’s new Digital Services Act (DSA), which imposes strict compliance measures on very large online platforms. Adding to its challenges, the EU is preparing a €2 handling fee per parcel on low-value e-commerce shipments — a move widely seen as targeting high-volume, low-margin sellers like Shein, as per Reuters. Trump-era tariffs and new US rules deepen the crisis Regulatory woes aren’t confined to Europe. In April, Shein announced price hikes, blaming changes in global trade regulations and tariffs. The move came shortly after US President Donald Trump reimposed stiff tariffs on low-cost imports and closed the so-called de minimis loophole, which had allowed goods valued under $800 to enter the US duty-free. As reported by Business Insider, this change directly affects Shein’s business model, which thrives on shipping low-cost individual parcels from China directly to US consumers. The policy reversal is expected to dent Shein’s profit margins, increase shipping costs, and slow down order fulfilment, making it harder to maintain the ultra-fast, ultra-cheap appeal that built its global empire. What lies ahead? With the EU deadline of 26 June fast approaching and heightened trade scrutiny in the US, Shein is under pressure to prove that it can adapt. EU authorities have made it clear: unless the company offers meaningful reforms, enforcement actions will follow, including steep financial penalties. According to Reuters, national regulators have the mandate to take legal steps if Shein's response fails to satisfy consumer law requirements. As Shein walks a regulatory tightrope across continents, its future may depend on more than just trendy clothing and flash sales. Its ability to survive this growing storm will now hinge on transparency, reform, and cooperation with the very markets that powered its rise. (With inputs from the agencies)

European consumer watchdogs have officially complained to EU authorities about Shein, the Chinese fast-fashion giant, allegedly using unethical design practices to manipulate online shoppers.&nbsp;

Shein under EU fire as consumer watchdog slams ‘dark pattern’ sales tactics

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

In a landmark judgement that could reshape the global trade dynamics, a US trade court blocked Donald Trump's 'Liberation Day' tariffs from going into effect, stating that the US president overstepped authorities. Rejecting all arguments, the Manhattan-based three-judge Court of International Trade ruled that Congress did not delegate "unbounded" powers to the President under International Emergency Economic Powers Act (IEEPA). It only authorises the president to impose necessary economic sanctions during an emergency "to combat an unusual and extraordinary threat," the bench said.&nbsp;The White House, as per AFP, has been given 10 days to complete the bureaucratic process and halt the tariffs. However, the White House said that the "unelected judges" have no right to weigh in on Trump's handling of the issue. As the judgement changed the track of Trump's tariff game, what drew eyeballs was his administration's bizarre explanations to the court justifying his tariffs.

<blockquote class="twitter-tweet"><a href="https://twitter.com/hashtag/WATCH?src=hash&amp;ref_src=twsrc%5Etfw">#WATCH</a> | Washington, DC: On US court blocking Donald Trump&#39;s tariffs White House Press Secretary Karoline Leavitt says, &quot; ...Other countries around the world has belief in Donald Trump...they also probably see how ridiculous this ruling is...we intend to win, we have filed an… <a href="https://t.co/tvflLPj8ii">pic.twitter.com/tvflLPj8ii</a>&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/1928147355888668959?ref_src=twsrc%5Etfw">May 29, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

1. The Trump administration, in their plea, stated that the US was able to stop military actions between India and Pakistan using his trade and tariff - a claim that India's MEA has denied&nbsp;2. Commerce Secretary Howard Lutnick told the court that the “tenuous ceasefire” between India and Paksitan was achieved after "Donald Trump offered to expand trade with the countries in exchange for it."&nbsp;3. Lutnick went on to claim, “If the court pauses President Trump’s tariffs move, then it will lead to both countries resuming their military actions since there will be no condition left to compel them to maintain peace.”&nbsp;4. &nbsp;Trump administration said the court ruling could hamper the security of entire region - “An adverse ruling that constrains presidential power in this case could lead India and Pakistan to question the validity of President Trump’s offer, threatening the security of an entire region and the lives of millions," Lutnick said.&nbsp;5. The Trump administration said that the ruling could have "an adverse ruling would destroy the carefully crafted China trade agreement." Lutnick claimed that it was President Trump’s spiraling tariffs that brought China to "negotiating table."&nbsp;6. Trump administration also said in the court that the ruling could "allow Chinese aggression" and "leave the American people exposed to predatory economic practices"&nbsp;7. Trump's secretary of state Marco Rubio claimed that the ruling could be a threat to national security. "A legal setback would lead to embarrassment of the United States on a global stage” and “would embolden allies and adversaries alike, leading to a dangerous situation globally," he said.&nbsp;

US trade court blocked Donald Trumps Liberation Day tariffs a look at his administration bizarre justification in the court

In a landmark judgement that could reshape the global trade dynamics, a US trade court blocked Donald Trump's 'Liberation Day' tariffs from going into effect, stating that the US president overstepped authorities. Rejecting all arguments, the Manhattan-based three-judge Court of International Trade ruled that Congress did not delegate "unbounded" powers to the President under International Emergency Economic Powers Act (IEEPA). It only authorises the president to impose necessary economic sanctions during an emergency "to combat an unusual and extraordinary threat," the bench said. The White House, as per AFP, has been given 10 days to complete the bureaucratic process and halt the tariffs. However, the White House said that the "unelected judges" have no right to weigh in on Trump's handling of the issue. As the judgement changed the track of Trump's tariff game, what drew eyeballs was his administration's bizarre explanations to the court justifying his tariffs.

US trade court blocked Donald Trump's ‘Liberation Day’ tariffs: Here's a look at his administration's bizarre justification in the court

From India-Pak tensions to national security threat: BIZARRE reasons Trump admin gave to defend tariffs in US court

President Donald Trump reacted to his embarrassing nickname, TACO, an acronym for ‘Trump Always Chickens Out’ that has been popular among investors on Wall Street. When confronted by a reporter about the nickname on Wednesday at the White House, he said he never chickened out, instead, he feels he is too tough."I kick out?" At first, he misheard the acronym.The reporter repeated, "chickened out""Oh, isn’t that nice. ‘Chicken out,’ I’ve never heard that," and then followed his explanation why he is too tough even though he did not follow through with tariffs on China and the European Union.&nbsp;“You call that chickening out? Because we have $14 trillion now invested, committed to investing—when Biden didn’t have practically anything; Biden, this country was dying,” said Trump.He said the US is a hot property now, since he took over. Earlier, it was ‘stone-cold dead’, the Saudis told that to Trump.&nbsp;

<blockquote class="twitter-tweet" data-media-max-width="560">Trump becomes even more unhinged when he hears “TACO” (Trump Always Chickens Out). Share the hell out of this clip. <a href="https://twitter.com/hashtag/TACOTrump?src=hash&amp;ref_src=twsrc%5Etfw">#TACOTrump</a> <a href="https://t.co/cfKwmmmNsa">pic.twitter.com/cfKwmmmNsa</a>&mdash; 💥Arbiter of Cool💥😎✌🏻👊🏻 (@ArbiterofCool) <a href="https://twitter.com/ArbiterofCool/status/1927780355660001792?ref_src=twsrc%5Etfw">May 28, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

“We had a country of people that didn’t think it was going to survive, and you ask a nasty question like that,” Trump said while accusing the media of victimising him. He continued his preaching on how his method of negotiation has set the bar higher, which landed them a better deal than Biden ever could have acquired.Trump went on to rebuke the reporter, “Don’t ever say what you said. That’s a nasty question. To me, that’s the nastiest question.”The acronym was first coined by Financial Times columnist Robert Armstrong. He used it to describe the trading practice of loading up stocks when Trump announces the Tariff and then selling when he backtracks on implementing them.&nbsp;Observers on Wall Street believe that Trump's threat of implementing higher tariffs has not provided them any high ground in negotiations. The Trump administration is running out on its “90 deals in 90 days” promise. The wishful thinking that corporations will cave in under the threat of high tariffs has not produced any significant result.

Trump rebukes reporters for mentioning his embarrassing nickname, TACO, in the White House, saying he feels he is too tough.

President Donald Trump reacted to his embarrassing nickname, TACO, an acronym for ‘Trump Always Chickens Out’ that has been popular among investors on Wall Street. When confronted by a reporter about the nickname on Wednesday at the White House, he said he never chickened out, instead, he feels he is too tough. "I kick out?" At first, he misheard the acronym. The reporter repeated, "chickened out" "Oh, isn’t that nice. ‘Chicken out,’ I’ve never heard that," and then followed his explanation why he is too tough even though he did not follow through with tariffs on China and the European Union. “You call that chickening out? Because we have $14 trillion now invested, committed to investing—when Biden didn’t have practically anything; Biden, this country was dying,” said Trump. He said the US is a hot property now, since he took over. Earlier, it was ‘stone-cold dead’, the Saudis told that to Trump.

Trump rebukes reporters for mentioning his embarrassing nickname, TACO, in the White House, saying he feels he is too tough.

Watch: Trump upset over new nickname 'TACO', slams reporter who tells him the meaning

Diamonds may be forever, but the current market is anything but stable. A new 10 per cent US tariff on polished diamond imports has added significant strain to a global diamond industry already under pressure from declining Chinese demand and the rapid rise of lab-grown alternatives. As one of the world’s most globalised luxury sectors, the diamond trade is now navigating a complex web of geopolitical, economic, and consumer-driven shifts.Announced in early April, the tariff announced by US President Donald Trump applies to a wide range of goods, including natural polished diamonds, but excludes metals such as gold and copper.&nbsp;The immediate impact was a scramble across key trading hubs like Antwerp, with exporters rushing to ship inventory before the tariffs took effect. India, the largest exporter of cut and polished diamonds, saw a fivefold surge in US-bound exports from April 1 to 4, reaching $512 million. Yet despite the rush, April exports of cut and polished diamonds fell 6.12 per cent compared to the previous year, according to data released by the Gem and Jewellery Export Promotion Council (GJEPC).Unlike commodities sourced and processed in a single location, diamonds often travel extensively. A single stone might be mined in Botswana, polished in India, certified in the US, and sold in Europe. The 10 per cent import duty adds cost at the final leg of that journey—a price increase that traders warn will ultimately be borne by consumers, especially in the US, which accounts for more than half of the global diamond demand.Retailers in the US are already pushing the added burden onto suppliers. Financial Times recently reported that Signet Jewellers, the largest diamond retailer in the country, told vendors it would not pay any additional costs linked to the new tariff on existing purchase orders. The company urged its partners to expedite shipments into the US to mitigate the financial fallout.The broader industry remains in a holding pattern as the White House has paused additional reciprocal tariffs for 90 days, pending further negotiations. But the initial 10 per cent duty remains active, and uncertainty is undermining confidence across the global supply chain.&nbsp;Consumer pressure and competitive headwinds&nbsp;Tariffs are hitting at an especially sensitive moment for the sector. Inflation and a softening in consumer sentiment have already begun to dampen discretionary spending. According to the Bureau of Economic Analysis, US consumer spending on jewellery and watches fell 5 per cent year-on-year in the first quarter of 2025. The National Retail Federation has forecast retail growth to slow to between 2.7 per cent and 3.7 per cent this year, compared to 8.1 per cent in 2024.Against this backdrop, the popularity of lab-grown diamonds (LGDs) has surged. These diamonds are chemically identical to natural diamonds but up to 80 per cent cheaper. LGDs now appear in over half of US engagement rings, according to The Knot’s 2025 Real Weddings study. Their rise has played a major role in the nearly 60 per cent decline in natural diamond prices since their peak in early 2022.To combat this, some traditional players are consolidating their strategies. De Beers, for example, has opted to shut down its LGD jewellery brand Lightbox to refocus on natural stones. The company’s parent, Anglo American, has written down De Beers’ value by $4.5 billion over the past two years and is currently preparing it for a possible spin-off or sale.&nbsp;China demand falters, India rises&nbsp;Compounding the industry’s challenges is a steep contraction in Chinese demand. Once a key driver of luxury consumption, China’s diamond market has shrunk significantly amid macro- and microeconomic challenges.Data from the Gems &amp; Jewelry Trade Association of China shows that the market fell from RMB 100 billion ($13.88 billion) in 2021 to just RMB 43 billion ($55.52 billion) in 2024—a staggering 57 per cent decline. Gem-quality diamond imports dropped 73 per cent by volume and 83 per cent by value over the same period, signalling severe price erosion.The decline in China’s demand has had global consequences, as it was the world's second-largest diamond market. India, however, is emerging as a counterweight to China’s slowdown.While India’s exports are down, India’s domestic market is showing double-digit growth, making it the world’s second-largest diamond consumer behind the US. According to industry experts, India’s rise has helped offset some of the global demand slump. Still, the growth is not enough to fully balance the downturn in China with the volatility in the US.&nbsp;Fragile supply chain faces uncertain future&nbsp;The global diamond supply chain—already stretched by pandemic-era disruptions—is particularly vulnerable to trade barriers. A typical diamond passes through several borders: mined in parts of Africa, traded in the Middle East or Europe, polished in India, certified in the US, and sold in retail outlets globally. Tariffs, therefore, do more than add cost; they risk unravelling the finely tuned logistics of the entire ecosystem.Adding to the complexity is the uncertain legal treatment of diamonds under US trade rules. While other commodities like gold and copper are exempt from tariffs, loose diamonds are currently included, despite being viewed by some as a raw material. Industry groups like the World Diamond Council are lobbying for exemption, warning that the tariffs could act as a consumption tax and dampen sentimental purchases such as engagement rings and anniversary gifts.The global diamond industry faces a crossroads. Tariffs and geopolitics have joined falling demand and technological disruption as key forces shaping the future. Analysts predict a bifurcation of the market, with premium natural diamonds becoming niche luxury items, while lab-grown stones dominate the mass market.For now, even the hardest substance on Earth is proving vulnerable to the softening forces of economics and policy.

A new 10 per cent US tariff on polished diamond imports has added significant strain to a global diamond industry already under pressure from declining Chinese demand and the rapid rise of lab-grown alternatives. 

Diamonds may be forever, but the current market is anything but stable. A new 10 per cent US tariff on polished diamond imports has added significant strain to a global diamond industry already under pressure from declining Chinese demand and the rapid rise of lab-grown alternatives. As one of the world’s most globalised luxury sectors, the diamond trade is now navigating a complex web of geopolitical, economic, and consumer-driven shifts. Announced in early April, the tariff announced by US President Donald Trump applies to a wide range of goods, including natural polished diamonds, but excludes metals such as gold and copper. The immediate impact was a scramble across key trading hubs like Antwerp, with exporters rushing to ship inventory before the tariffs took effect. India, the largest exporter of cut and polished diamonds, saw a fivefold surge in US-bound exports from April 1 to 4, reaching $512 million. Yet despite the rush, April exports of cut and polished diamonds fell 6.12 per cent compared to the previous year, according to data released by the Gem and Jewellery Export Promotion Council (GJEPC). Unlike commodities sourced and processed in a single location, diamonds often travel extensively. A single stone might be mined in Botswana, polished in India, certified in the US, and sold in Europe. The 10 per cent import duty adds cost at the final leg of that journey—a price increase that traders warn will ultimately be borne by consumers, especially in the US, which accounts for more than half of the global diamond demand. Retailers in the US are already pushing the added burden onto suppliers. Financial Times recently reported that Signet Jewellers, the largest diamond retailer in the country, told vendors it would not pay any additional costs linked to the new tariff on existing purchase orders. The company urged its partners to expedite shipments into the US to mitigate the financial fallout. The broader industry remains in a holding pattern as the White House has paused additional reciprocal tariffs for 90 days, pending further negotiations. But the initial 10 per cent duty remains active, and uncertainty is undermining confidence across the global supply chain. Consumer pressure and competitive headwinds Tariffs are hitting at an especially sensitive moment for the sector. Inflation and a softening in consumer sentiment have already begun to dampen discretionary spending. According to the Bureau of Economic Analysis, US consumer spending on jewellery and watches fell 5 per cent year-on-year in the first quarter of 2025. The National Retail Federation has forecast retail growth to slow to between 2.7 per cent and 3.7 per cent this year, compared to 8.1 per cent in 2024. Against this backdrop, the popularity of lab-grown diamonds (LGDs) has surged. These diamonds are chemically identical to natural diamonds but up to 80 per cent cheaper. LGDs now appear in over half of US engagement rings, according to The Knot’s 2025 Real Weddings study. Their rise has played a major role in the nearly 60 per cent decline in natural diamond prices since their peak in early 2022. To combat this, some traditional players are consolidating their strategies. De Beers, for example, has opted to shut down its LGD jewellery brand Lightbox to refocus on natural stones. The company’s parent, Anglo American, has written down De Beers’ value by $4.5 billion over the past two years and is currently preparing it for a possible spin-off or sale. China demand falters, India rises Compounding the industry’s challenges is a steep contraction in Chinese demand. Once a key driver of luxury consumption, China’s diamond market has shrunk significantly amid macro- and microeconomic challenges. Data from the Gems & Jewelry Trade Association of China shows that the market fell from RMB 100 billion ($13.88 billion) in 2021 to just RMB 43 billion ($55.52 billion) in 2024—a staggering 57 per cent decline. Gem-quality diamond imports dropped 73 per cent by volume and 83 per cent by value over the same period, signalling severe price erosion. The decline in China’s demand has had global consequences, as it was the world's second-largest diamond market. India, however, is emerging as a counterweight to China’s slowdown. While India’s exports are down, India’s domestic market is showing double-digit growth, making it the world’s second-largest diamond consumer behind the US. According to industry experts, India’s rise has helped offset some of the global demand slump. Still, the growth is not enough to fully balance the downturn in China with the volatility in the US. Fragile supply chain faces uncertain future The global diamond supply chain—already stretched by pandemic-era disruptions—is particularly vulnerable to trade barriers. A typical diamond passes through several borders: mined in parts of Africa, traded in the Middle East or Europe, polished in India, certified in the US, and sold in retail outlets globally. Tariffs, therefore, do more than add cost; they risk unravelling the finely tuned logistics of the entire ecosystem. Adding to the complexity is the uncertain legal treatment of diamonds under US trade rules. While other commodities like gold and copper are exempt from tariffs, loose diamonds are currently included, despite being viewed by some as a raw material. Industry groups like the World Diamond Council are lobbying for exemption, warning that the tariffs could act as a consumption tax and dampen sentimental purchases such as engagement rings and anniversary gifts. The global diamond industry faces a crossroads. Tariffs and geopolitics have joined falling demand and technological disruption as key forces shaping the future. Analysts predict a bifurcation of the market, with premium natural diamonds becoming niche luxury items, while lab-grown stones dominate the mass market. For now, even the hardest substance on Earth is proving vulnerable to the softening forces of economics and policy.

A new 10 per cent US tariff on polished diamond imports has added significant strain to a global diamond industry already under pressure from declining Chinese demand and the rapid rise of lab-grown alternatives.&nbsp;

Is the hardest metal crumbling under US tariff pressure?

The European Union has issued a stark warning to Chinese fast-fashion giant Shein, threatening the company with hefty fines for allegedly deceiving consumers and violating EU consumer protection laws.&nbsp;The action follows a sweeping investigation led by the European Commission in coordination with national regulators in Belgium, France, Ireland, and the Netherlands, according to Reuters.&nbsp;Shein, which has become a household name across Europe by selling low-cost fashion online, has been accused of manipulating prices, misleading customers, and failing to meet refund obligations.&nbsp;The company has until 26 June to respond and propose remedies. If it fails to do so, it could face fines based on its annual turnover within EU member states, as per Reuters.<h2> What Shein is accused of doing</h2> The European Commission has accused fast-fashion giant Shein of engaging in a series of deceptive practices that violate EU consumer protection laws.&nbsp;According to Reuters, the Commission, in coordination with consumer rights watchdogs in Belgium, France, Ireland, and the Netherlands, found that Shein had consistently misled its customers through tactics that distort purchasing decisions and compromise transparency.&nbsp;At the core of the allegations is Shein’s pricing strategy. The company is reportedly accused of promoting fake discounts by artificially inflating the original prices of items to exaggerate the size of savings during sales.&nbsp;Additionally, Shein has been reportedly found to manufacture a sense of urgency by deploying misleading countdown timers and limited stock notices, designed to pressure consumers into making hasty purchases.&nbsp;The European Union also raised concerns about deceptive labelling, particularly regarding products marketed as sustainable. According to the investigation, many of these claims lack substantiated environmental standards, misleading customers who may be trying to make eco-conscious choices.&nbsp;Shein has also reportedly come under fire for concealing customer service contact details, effectively making it difficult for consumers to seek redress or file complaints.&nbsp;Equally problematic, the Commission said, is the company’s handling of return and refund policies. It accused Shein of providing incorrect and unclear information about return procedures and of delaying refunds, thereby undermining consumer trust and legal rights. &nbsp;In its official statement, the European Commission noted that these practices breach essential consumer rights related to transparency and fair dealing. “Shein now has one month to reply to the CPC Network’s findings and propose commitments on how they will address the identified consumer law issues,” the Commission said, as quoted by Reuters.&nbsp;It further added that if Shein fails to take meaningful corrective action, national authorities within the EU have the mandate to take enforcement steps, including the imposition of fines. These penalties could be calculated based on Shein’s annual turnover in the relevant EU Member States, according to Reuters. &nbsp;The regulatory pressure is part of a broader push by the EU to hold digital and cross-border platforms accountable for consumer welfare, especially as platforms like Shein continue to dominate the fast fashion market with massive user bases, according to Reuters.<h2>Shein’s dominant EU footprint</h2>Shein’s potential penalties come at a time when its digital footprint in Europe is vast. The company reports that nearly 100 million monthly users engage with its platform in the region, as per data shared on Shein’s official website and cited by Business Insider.&nbsp;This scale makes Shein a priority for EU regulators, who are increasingly scrutinising major online retailers for consumer and product safety compliance.&nbsp;Earlier this year, the European Commission also warned Shein and its rival Temu about the sale of unsafe and potentially dangerous products, according to Reuters.&nbsp;Shein is also in the crosshairs of the Digital Services Act (DSA), which mandates stricter obligations for very large online platforms operating in the EU. Additionally, the European Union has proposed a €2 handling fee per parcel on low-value e-commerce shipments, a policy widely seen as targeting high-volume sellers like Shein, Reuters reported.<h2>Trade troubles and slowing growth</h2>The EU probe comes on the heels of global trade headwinds that are already hurting Shein’s profitability. In April, the company increased product prices, citing “recent changes in global trade rules and tariffs”.&nbsp;As reported by Business Insider, the move followed US President Donald Trump’s closure of the de minimis loophole, which had allowed shipments under $800 to enter the United States duty-free.&nbsp;Shein’s sales growth has since slowed, and analysts say its low-margin, high-volume model is becoming more difficult to sustain amid tariff hikes and regulatory scrutiny from both the US and EU.<h2>What comes next?</h2>With a deadline of June 26 looming, Shein must now respond to the EU’s findings and present a credible plan to fix the problems. If the company’s reply is deemed unsatisfactory, enforcement proceedings will follow — potentially leading to multi-million euro fines depending on the company’s EU revenue.&nbsp;Shein has yet to issue an official statement in response. Its representatives have not responded to requests for comment, according to Reuters.&nbsp;As the EU flexes its regulatory muscle and the US tightens trade loopholes, Shein’s global dominance faces mounting legal and economic pressure. For a company built on speed and scale, the question is whether it can adapt or risk being slowed down by the very markets that fuelled its meteoric rise. &nbsp;

Business & Economy: According to reports, Shein has until 26 June to respond and propose remedies, or face fines based on annual turnover within EU member states.

The European Union has issued a stark warning to Chinese fast-fashion giant Shein, threatening the company with hefty fines for allegedly deceiving consumers and violating EU consumer protection laws. The action follows a sweeping investigation led by the European Commission in coordination with national regulators in Belgium, France, Ireland, and the Netherlands, according to Reuters. Shein, which has become a household name across Europe by selling low-cost fashion online, has been accused of manipulating prices, misleading customers, and failing to meet refund obligations. The company has until 26 June to respond and propose remedies. If it fails to do so, it could face fines based on its annual turnover within EU member states, as per Reuters. What Shein is accused of doing The European Commission has accused fast-fashion giant Shein of engaging in a series of deceptive practices that violate EU consumer protection laws. According to Reuters, the Commission, in coordination with consumer rights watchdogs in Belgium, France, Ireland, and the Netherlands, found that Shein had consistently misled its customers through tactics that distort purchasing decisions and compromise transparency. At the core of the allegations is Shein’s pricing strategy. The company is reportedly accused of promoting fake discounts by artificially inflating the original prices of items to exaggerate the size of savings during sales. Additionally, Shein has been reportedly found to manufacture a sense of urgency by deploying misleading countdown timers and limited stock notices, designed to pressure consumers into making hasty purchases. The European Union also raised concerns about deceptive labelling, particularly regarding products marketed as sustainable. According to the investigation, many of these claims lack substantiated environmental standards, misleading customers who may be trying to make eco-conscious choices. Shein has also reportedly come under fire for concealing customer service contact details, effectively making it difficult for consumers to seek redress or file complaints. Equally problematic, the Commission said, is the company’s handling of return and refund policies. It accused Shein of providing incorrect and unclear information about return procedures and of delaying refunds, thereby undermining consumer trust and legal rights. In its official statement, the European Commission noted that these practices breach essential consumer rights related to transparency and fair dealing. “Shein now has one month to reply to the CPC Network’s findings and propose commitments on how they will address the identified consumer law issues,” the Commission said, as quoted by Reuters. It further added that if Shein fails to take meaningful corrective action, national authorities within the EU have the mandate to take enforcement steps, including the imposition of fines. These penalties could be calculated based on Shein’s annual turnover in the relevant EU Member States, according to Reuters. The regulatory pressure is part of a broader push by the EU to hold digital and cross-border platforms accountable for consumer welfare, especially as platforms like Shein continue to dominate the fast fashion market with massive user bases, according to Reuters. Shein’s dominant EU footprint Shein’s potential penalties come at a time when its digital footprint in Europe is vast. The company reports that nearly 100 million monthly users engage with its platform in the region, as per data shared on Shein’s official website and cited by Business Insider. This scale makes Shein a priority for EU regulators, who are increasingly scrutinising major online retailers for consumer and product safety compliance. Earlier this year, the European Commission also warned Shein and its rival Temu about the sale of unsafe and potentially dangerous products, according to Reuters. Shein is also in the crosshairs of the Digital Services Act (DSA), which mandates stricter obligations for very large online platforms operating in the EU. Additionally, the European Union has proposed a €2 handling fee per parcel on low-value e-commerce shipments, a policy widely seen as targeting high-volume sellers like Shein, Reuters reported. Trade troubles and slowing growth The EU probe comes on the heels of global trade headwinds that are already hurting Shein’s profitability. In April, the company increased product prices, citing “recent changes in global trade rules and tariffs”. As reported by Business Insider, the move followed US President Donald Trump’s closure of the de minimis loophole, which had allowed shipments under $800 to enter the United States duty-free. Shein’s sales growth has since slowed, and analysts say its low-margin, high-volume model is becoming more difficult to sustain amid tariff hikes and regulatory scrutiny from both the US and EU. What comes next? With a deadline of June 26 looming, Shein must now respond to the EU’s findings and present a credible plan to fix the problems. If the company’s reply is deemed unsatisfactory, enforcement proceedings will follow — potentially leading to multi-million euro fines depending on the company’s EU revenue. Shein has yet to issue an official statement in response. Its representatives have not responded to requests for comment, according to Reuters. As the EU flexes its regulatory muscle and the US tightens trade loopholes, Shein’s global dominance faces mounting legal and economic pressure. For a company built on speed and scale, the question is whether it can adapt or risk being slowed down by the very markets that fuelled its meteoric rise.

The European Union has warned Chinese fast-fashion company Shein of potential fines for allegedly deceiving consumers and violating EU consumer protection laws.&nbsp;

Shein’s European empire at risk as Brussels issues stir warning over fake discounts and false claims

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

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

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

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

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

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

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

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

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

RBI says India remains resilient as global trade landscape shifts

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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