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General Motors announced Tuesday fresh actions to return funds to investors, lifting shares despite reporting a quarterly loss on costs connected to its electric vehicle retreat.The results were dented by a previously-announced hit of $7.1 billion, mostly due to write-down on EV investments following an about-face in US environmental policy enacted by President Donald Trump’s administration.That resulted in a fourth-quarter loss of $3.3 billion, compared with a loss of $3.0 billion in the year-ago period.Annual profits fell 55 percent to $2.7 billion.But the big US automaker, which has undertaken significant strategic pivots in light of Trump’s aggressive policy changes on trade and fuel economy rules, projected higher profits in 2026.GM described its performance in 2025 as “resilient,” with 2026 “positioned to be stronger than 2025,” according to a company presentation.GM expects solid vehicle pricing to continue amid relatively tight vehicle inventories that stand “slightly” below the company’s target of having 50-60 days of supply on hand. GM also plans launches of key vehicles, including its popular Chevrolet Silverado pickup.”We grew the business and adapted to significant changes in tax and trade policy, to deliver full year (earnings) at the high end of guidance range,” said Chief Executive Mary BarraRevenues dipped 5.1 percent to $45.3 billion on lower vehicle sales compared with the year-ago period.GM has significantly scaled back its EV investments while redirecting billions of dollars in capital towards boosting production of gasoline-fired vehicles.However, Barra has said the company continues to believe in an EV future, in part because “we know once somebody drives an EV, they rarely go back to internal combustion engine,” she said on Tuesday’s analyst call.- Lower auto inventories -GM expects 2026 tariff costs of $3.0-$4.0 billion after incurring $3.1 billion in 2025, a bit below the $3.5 to $4.5 billion previously forecast.The latest wildcard in White House trade policy came Monday night when Trump said he would raise tariffs on South Korean goods to 25 percent, accusing the Asian country’s legislature of not enacting policy to cement a US-South Korea deal setting a 15 percent tariff.GM has a significant operation in South Korea, including production of the Chevrolet Trax, a moderately-priced compact sport utility vehicle.GM’s forecasts still include the 15 percent levy. Barra said she was “hopeful” about the lower rate but would offset the hit if there is a period with a higher levy.GM’s North American inventories have gradually edged lower over the last year, standing at 486,000 vehicles at the end of the year, down 18.6 percent from the end of 2024.Pricing will be “flat to up 0.5 percent,” according to a GM slide.The company does not anticipate a “big buildup” in vehicle supply, Chief Financial Officer Paul Jacobson said on the conference call.Jacobson emphasized GM’s ongoing commitment to shareholder returns, noting the company has repurchased $23 billion in stock since November 2023, reducing its outstanding share count by nearly 35 percent.On Tuesday, GM raised its dividend by 20 percent and announced it had authorized $6 billion in new share repurchases.Shares surged 8.6 percent shortly after midday.

Global stock markets mostly rose Tuesday as investors geared up for the US Federal Reserve’s policy meeting outcome and earnings from tech titans, which will be pored over for signs of AI momentum.In New York, the Dow blue-chip index ran into some profit-taking but the broader S&P index and the tech-heavy Nasdaq Composite were well bid.European equity markets ended the day mostly higher, with Frankfurt slipping lower.Earlier Tuesday, Asian stocks brushed off South Korea-US tariff concerns, instead focusing on “hopes of strong earnings from the US tech heavyweights in the next couple of days”, said Richard Hunter, head of markets at Interactive investor.Tech firms are enjoying a fresh boost ahead of earnings releases as traders continue to pile into all things artificial intelligence.Apple, Meta, Microsoft and Tesla give updates this week, with other bellwethers including Texas Instruments, Boeing and Mastercard providing an idea about the state of the US economy.Boeing shares rose 1.8 percent after the aircraft maker reported its first annual profit since 2018.Concerns remain meanwhile over the scale of investment in AI even as its deployment has yet to pay off significantly.Investor attention was also on the Federal Reserve’s policy meeting starting Tuesday.The US central bank is widely expected to hold key interest rates steady on Wednesday, but “markets will be watching keenly to see if Chair (Jerome) Powell, who’s kept a tight grip on monetary policy, is to be replaced by a Trump dove,” said Derren Nathan, head of equity research at Hargreaves Lansdown.Data released Tuesday showed consumer confidence in the United States plunged in January to its lowest level since 2014 as American households continue to fret about inflation and elevated costs of living.Lale Akoner, eToro market analyst, said that weaker sentiment gives the Fed more room to wait before acting, as it indicates a gradual slowdown in growth than a downturn.”If inflation continues to cool and growth softens gradually, rate cuts later in the year or into 2027 become more likely,” she said.Markets currently expect to Fed to cut interest rates next in June or July.US President Donald Trump has meanwhile reverted back to tariff threats this week, warning South Korea he would impose 25 percent tolls on goods including autos for falling short of expectations on an earlier pact struck with Washington.The dollar remained under pressure after a selloff sparked by talk of a joint intervention between US and Japanese authorities to support the yen.Shares in German sportswear brand Puma climbed strongly in Frankfurt with Chinese athletic goods giant Anta Sports set to purchase a leading stake in the company.But although posting a rise of 9.5 percent, Puma’s share price, at 23.71 euros, was quoted far below the 35 euros per share that Anta is paying Artemis, the holding firm of France’s Pinault family, for its 29-percent stake.This, analysts said, reflects investor caution about the group’s chances of turning its fortunes around, after seeing its market capitalisation plunge by about a third over the past year.- Key figures at around 1630 GMT -New York – Dow: DOWN 0.6 percent at 49,098.78 pointsNew York – S&P 500: UP 0.5 percent at 6,986.17New York – Nasdaq Composite: UP 1.0 percent at 23,839.38London – FTSE 100: UP 0.6 percent at 10,207.80 (close)Paris – CAC 40: UP 0.3 percent at 8,152.82 (close)Frankfurt – DAX: DOWN 0.2 percent at 24,894.44 (close)Tokyo – Nikkei 225: UP 0.9 percent at 53,333.54 (close)Hong Kong – Hang Seng Index: UP 1.4 percent at 27,126.95 (close)Shanghai – Composite: UP 0.2 percent at 4,139.90 (close)Euro/dollar: UP at $1.1971 from $1.1883Dollar/yen: DOWN at 153.08 yen from 153.98 yen on MondayPound/dollar: UP at $1.3766 from $1.3682Euro/pound: UP at 86.98 pence from 86.85 penceBrent North Sea Crude: UP 1.6 percent at $65.82 per barrelWest Texas Intermediate: UP 1.9 percent at $61.75 per barrelburs/rl/jh

Chinese athletic goods giant Anta Sports will buy a controlling stake in historic German sportswear brand Puma for $1.79 billion, a stock exchange filing showed Tuesday.As it expands its international presence, Anta will buy 43 million shares for 35 euros apiece from the French billionaire Pinault family’s Artemis group, the statement to the Hong Kong exchange said, giving it a 29 percent stake.The price is a more than 60-percent premium to Puma’s last close, according to Bloomberg data, and values the deal at 1.51 billion euros.Anta said in the statement that the stake would “further enhance its presence and brand recognition in the global sporting goods market”, including China.”We believe Puma’s share price over the past few months does not fully reflect the long-term potential of the brand,” Anta chairman Ding Shizhong said.While the statement said Anta had no plans to launch a full takeover of Puma, it will “carefully assess the possibility of further deepening the partnership between the two parties in the future”.Artemis said the sale would allow it to “redeploy its resources to new value-creating sectors”.The deal is expected to close by the end of the year, though it is subject to regulatory approvals, and the company will buy shares with cash.In a statement sent to AFP, Puma CEO Arthur Hoeld welcomed Anta’s move, calling it a “vote of confidence in Puma and its strategic direction”.”Anta aims to empower Puma to fully realise its brand potential and its heritage,” Hoeld said.Anta declined to comment on the deal when contacted by AFP.The firm, based in China’s southeastern Fujian province, is one of the world’s largest sportswear companies.Founded in 1991, it is the parent company of many global brands through its subsidiary Amer Sports, including Wilson, Arc’teryx and Salomon.Anta closed its acquisition of Finland-based Amer in 2019, leading a consortium in a deal worth about $5.2 billion.It also controls rights in the vast Chinese market for foreign sportswear firms including Fila and Descente.Anta has become the world’s third-largest sportswear brand following Nike and Adidas, according to data analytics firm Euromonitor International.The purchase shows Anta “narrowing the gap” to those two giants, according to Marguerite Le Rolland, senior global insight manager for fashion at Euromonitor International.The Chinese sportswear giant will benefit from Puma’s global reputation, its leading position in India’s expanding sportswear market, and its partnership with Hyrox, the rapidly growing fitness trend, she said.”For Puma, this transaction will provide extra financial resources to turn around the business”.The German brand has been struggling with weak demand in recent months and saw sales decrease more than 15 percent in the third quarter of last year.CEO Hoeld, who was appointed last year, has said the brand had become “too commercial” and was undergoing a “reset” last year to improve on brand heat, distribution quality and product offering.Hoeld told investors in October that the company’s goal was to “become a top three sports brand in the future again”.He deemed 2026 a “year of transition”, vowing a return to growth in 2027.Puma is set to release its 2025 full-year financial results on February 26.pfc-mya-sam-bur/iv

Hybrid-electric vehicles dethroned purely petrol-powered cars as the top power option among consumers in Europe last year, data showed Tuesday.Some 10.8 million new vehicles were registered in 2025 in the European Union, an increase of 1.8 percent from the previous year, according to the European Automobile Manufacturers’ Association (ACEA). New car sales “remain well below pre-pandemic levels”, however, the trade association said in a statement.Despite the only modest overall sales growth, consumers continued to shift towards hybrid and battery-electric vehicles.Sales of hybrid-electric vehicles climbed by 13.5 percent last year to account for 34.5 percent of total sales in the EU last year, putting them ahead of petrol cars at 26.6 percent.Meanwhile, sales of battery-electric vehicles jumped by 30 percent to account for 17.4 percent of overall sales, though the ACEA noted that the gain was from a weak performance in 2024 and needs to rise further to stay on track with the EU’s transition goals.Sales of plug-in hybrids also rose, but sales of petrol and diesel vehicles dropped.The combined market share of petrol and diesel cars fell to 35.5 percent, down from 45.2 percent in 2024.Volkswagen Group saw sales rise by 5.5 percent last year to increase its lead as the top-selling carmaker in Europe.France’s Renault saw similar growth, but Stellantis, which owns several European brands such as Peugeot and Fiat, saw sales slide by 4.7 percent.Chinese carmaker BYD tripled its sales in the EU last year, although from a small base.China’s SAIC Motor, which owns the MG brand, saw sales rise by a third. Sales of Teslas fell by nearly 38 percent last year as the electric car brand has suffered reputational damage in Europe from its association with billionaire Elon Musk, who backed US President Donald Trump before a falling-out, and who has endorsed Germany’s far-right AfD party. 

India and the European Union announced Tuesday the “mother of all deals”, a huge trade pact to create a market of two billion people, reached after two decades of negotiations.EU chiefs and Prime Minister Narendra Modi hope the pact will help shield against challenges from the world’s two leading economies, the United States and China.The agreement will cut or eliminate tariffs on almost 97 percent of European exports, saving up to 4 billion euros ($4.75 billion) annually in duties, the 27-nation bloc said.”A mother of all deals,” Modi said Tuesday in the capital New Delhi, where he met with European Commission President Ursula von der Leyen and European Council President Antonio Costa.”This deal will bring many opportunities for India’s 1.4 billion and many millions of people of the EU,” Modi said, adding the agreement “represents about 25 percent of global GDP, and one-third of global trade”.The EU has eyed India — the world’s most populous nation — as an important market for the future.”Europe and India are making history today,” von der Leyen said in a statement, a day after she and Costa were feted as guests of honour at India’s Republic Day parade.”We have created a free trade zone of two billion people, with both sides set to benefit.”- ‘Increasingly insecure world’ -EU officials said the deal was the most ambitious India had ever agreed, and European companies would benefit from so-called “first mover advantage”.Europe’s key agricultural, automotive and service sectors stand to gain.But sensitive agricultural sectors, such as beef, rice and sugar whose inclusion in an earlier deal struck with South American bloc Mercosur sparked farmers’ anger in Europe, were left out of the agreement.New Delhi sees the European bloc as an important source of much-needed technology and investment to rapidly upscale its infrastructure and create millions of new jobs.It also includes a security partnership, providing “new opportunities” for defence companies, Modi said.”We are not only making our economies stronger — we are also delivering security for our people in an increasingly insecure world,” von der Leyen said, speaking alongside Modi after exchanging agreements.”By combining these strengths, we reduce strategic dependencies, at a time when trade is increasingly weaponised,” she added.Bilateral trade in goods reached 120 billion euros ($139 billion) in 2024, an increase of nearly 90 percent over the past decade, according to EU figures, with a further 60 billion euros ($69 billion) in trade in services.Under the agreement, India is expected to ease market access, and European firms will get privileged access to the Indian financial services and maritime transport market, the bloc said.- ‘Highest level of access’ -Tariffs on cars will be gradually lowered from a top rate of 110 percent to as low as 10 percent — with a quota of 250,000 vehicles — while duties on wines progressively go down from 150 percent to as low as 20 percent.Currently at 50 percent, tariffs on processed foods — including pasta and chocolate — will be eliminated, according to the EU.Von der Leyen said she expected exports to India to double, and that the EU would “gain the highest level of access ever granted to a trade partner in the traditionally protected Indian market”.For India, it would boost sectors including textiles, gems and jewellery, and leather goods, as well as the service sector, Modi said.The accord comes as both Brussels and New Delhi seek to open up markets in the face of US tariffs and Chinese export controls.”The unprecedented preferential access secured for over 99 percent of Indian exports is a game-changer for Indian industry,” said Chandrajit Banerjee, director general, Confederation of Indian Industry.India is on track to become the fourth-largest economy this year, according to International Monetary Fund projections.New Delhi, which has relied on Moscow for key military hardware for decades, has tried to cut its dependence on Russia in recent years by diversifying imports and pushing its own domestic manufacturing base.Europe is doing the same with regard to the United States.

The European Union and India announced Tuesday that they had struck a “historic” trade deal that Brussels hopes will see exports double to the Asian powerhouse.They had spent two decades negotiating but the return of US President Donald Trump and his hefty tariffs accelerated the push on both sides to seal a deal.Here is what Brussels and New Delhi agreed in what India’s Prime Minister Narendra Modi called the “mother of all deals”:- What benefits for the EU? -Indian tariffs on more than 90 percent of EU goods will be removed or cut.For example, India will progressively reduce levies to between 20 and 30 percent on European wines, down from 150 percent before the agreement.Beer tariffs will drop to 50 percent from 110 percent, while spirits will see future levies of 40 percent, down from up to 150 percent.India will also remove tariffs on EU olive oil — a major export from Spain, Italy and Greece — fruit juice, non-alcoholic beer and processed food including bread, pasta, chocolate and pet food. In a welcome move for one of the bloc’s biggest sectors and especially Germany, tariffs on cars will be gradually lowered from a top rate of 110 percent to as low as 10 percent — with a quota of 250,000 vehicles.And India will eliminate tariffs on aircraft — a potential boon for pan-European aerospace group Airbus — as well as cutting levies to zero on most machinery, medical equipment, chemicals and pharmaceutical products.- How does India benefit? -According to Brussels, the EU’s imports from India comprise mainly machinery and appliances, chemicals, base metals, mineral products and textiles.India said the EU would immediately eliminate duties on products making up the majority of its exports including textiles, leather and footwear, tea, coffee, spices, sports goods, toys, gems and jewellery, and certain marine products.And the EU agreed to phase out tariffs for processed food items as well as arms and ammunition, among other goods.Steel was a thorny issue in negotiations since India is a major exporter. Brussels says the steel makes up seven percent of total Indian exports to the EU.Under the deal, India will benefit from a duty-free quota of 1.6 million tonnes, and New Delhi will relinquish its retaliation rights under the World Trade Organization, a senior EU official said.Another sticking point for India was the EU’s carbon border tax, which aims to ensure foreign producers pay a carbon cost similar to what European companies already pay under the bloc’s internal emissions trading system.Under the deal, the EU agreed to launch a technical dialogue on the tax if needed, and vowed not to treat any other EU partner better than India.The EU has also promised to make it easier for skilled Indian workers to work in the 27-country bloc, agreeing to a memorandum of understanding on mobility covering issues related to seasonal workers, researchers and students, the EU official said.- What doesn’t the deal include? -Sensitive agricultural products are excluded from the new deal.The senior EU official said there were no concessions for sugar, ethanol, rice, soft wheat, beef, chicken meat, milk powders, bananas, honey or garlic.He also said that unlike deals the EU has struck with other partners, there were no chapters on government procurement, on energy and raw materials, or on the liberalisation of investment in manufacturing sectors.India also opposed any chapter on “sustainable development where we focus on social rights and also environmental issues”, the official added.The two partners are discussing a separate agreement on Geographical Indications, the intellectual property rights that link a product’s qualities, reputation or features to its place of origin.This “will help traditional EU farming products sell more in India, by removing unfair competition in the form of imitations”, the EU executive said.India said the deal safeguarded sensitive sectors including dairy, cereals, poultry, soybean meal and certain fruits and vegetables.

Britain’s Keir Starmer is in China this week, marking the first visit by a UK prime minister in eight years and hailed by Beijing as a potential “new chapter” in relations.It is the latest in a string of Western leaders seeking a rapprochement with Beijing, as US President Donald Trump turns on traditional allies.Starmer hopes to boost trade after years of strained relations, but must balance this with security concerns raised in the UK over a potential threat posed by China.Here are the three key questions surrounding the visit:- Where do relations stand? -London and Beijing enjoyed what they describe as the “Golden Era” a decade ago — a time when then-prime minister David Cameron and Chinese President Xi Jinping famously enjoyed beers together at a British pub.But relations soured since 2020, when Beijing imposed a national security law on Hong Kong and cracked down on pro-democracy activists in the former British colony.Human rights abuses, alleged spying and cyber attacks, and China’s perceived support for Russia’s war in Ukraine also strained ties.Nevertheless, China remains Britain’s third-largest trading partner, though UK exports to the East Asian country plummeted 52.6 percent year-on-year in 2025, according to British government statistics.And in December, Starmer said it would be a “dereliction of duty” not to engage with Beijing. – Why is Starmer visiting now? -Relations began to thaw soon after Starmer took the helm in 2024 following a closed-door meeting with Xi in Brazil in which the UK prime minister said Britain would look to cooperate with China on issues such as climate change.But a protracted row over Chinese plans to build a vast new embassy in London complicated plans for Starmer’s visit.Beijing purchased the building, on the site of the former Royal Mint, in 2018, but opponents argued that the “mega embassy” will be used for espionage and pressure rights activists in Britain.The plan was finally approved on Tuesday and made way for China’s invitation to Starmer with a UK government spokesperson saying intelligence agencies have plans to “manage any risks”.Starmer’s trip also comes as Britain faces a rift with its closest ally, the United States, following Trump’s bid to seize Greenland and his brief threat of tariffs against the UK and other NATO allies.With Trump increasingly tearing apart the global order, “China might not be an ally, but it is also not an enemy”, Kerry Brown, director of the Lau China Institute at King’s College London told AFP.Facing a lacklustre British economy, Starmer will also be looking to seal trade deals to boost growth at home.China has expressed hopes for the visit, with foreign ministry spokesman Guo Jiakun on Tuesday calling it an opportunity to “deepen practical cooperation with the UK, jointly opening a new chapter in the healthy and stable development of China-UK relations”.- What’s on the table? -Starmer will arrive with an entourage of industry executives hoping to promote British business through a UK-China CEO Council, a body that has lain dormant for years.Created in 2018, the council once brought business and industry executives from both countries together when relations were in their “golden era”.Starmer is also expected to raise the case of Hong Kong media mogul and democracy supporter Jimmy Lai, a British citizen and founder of the now-shuttered Apple Daily tabloid.The 78-year-old is facing years in prison after being found guilty of collusion charges in December under the new national security law.Xi and Starmer are also likely to discuss Ukraine, where Beijing is accused of enabling Russia’s invasion through its close economic ties to Moscow.The visit will represent a “shift toward managed re-engagement rather than renewed strategic trust”, according to Jinghan Zeng, an international relations scholar at City University of Hong Kong.While progress could be made on climate change, trade, and people-to-people exchanges, “concrete outcomes will probably be modest”, he said.

Stock markets rallied Tuesday following Wall Street’s healthy lead, with tech firms leading Seoul to another record as investors brushed off Donald Trump’s threat to hike tariffs on South Korean goods.The yen held its gains after a two-day surge stoked by intervention talk, while geopolitical and economic uncertainty saw silver hit another fresh peak and gold hover just below its own high.Traders are also gearing up for a Federal Reserve policy meeting and earnings from tech titans, which will be pored over for an idea about sustainability of the AI investment surge.Equities enjoyed healthy buying despite the US president reverting to tariff threats, warning South Korea he would impose 25 percent tolls on goods including autos for falling short of expectations on an earlier pact struck with Washington.The announcement comes months after the two sides struck a trade and security deal following tense negotiations, setting levies at 15 percent.”South Korea’s Legislature is not living up to its Deal with the United States,” Trump wrote on his Truth Social platform.He added that he was increasing tariff rates “because the Korean Legislature hasn’t enacted our Historic Trade Agreement, which is their prerogative”.The presidential office in Seoul said it had not been informed in advance but added that Trade Minister Kim Jung-kwan, currently in Canada, would head to Washington for talks with US Commerce Secretary Howard Lutnick.Trump’s outburst follows a warning to Canada on Saturday that it faced 100 percent levies if it signed a trade deal with China, days after backing down from a threat to hit several European countries with measures over their opposition to his grab for Greenland.Still, Seoul’s Kospi continued its run to fresh record highs by jumping 2.8 percent, with observers pointing to the US president’s history of rowing back the worst of his threats.While carmakers slipped, tech firms ploughed higher with chipmaking giant SK hynix up 8.7 percent and Samsung Electronics up 4.8 percent.There were also big gains in Hong Kong, Shanghai, Sydney, Singapore, Taipei, Bangkok, Manila and Jakarta.London, Paris and Frankfurt all opened with gains.- India-EU trade deal -Mumbai advanced in early trade after India and the European Union unveiled a free-trade deal totalling about a quarter of global GDP, following two decades of negotiations.Indian Prime Minister Narendra Modi said the agreement “will bring many opportunities for India’s 1.4 billion and many millions of people of the EU”.Tech firms are enjoying a fresh boost ahead of earnings releases as traders continue to pile into all things AI.Magnificent Seven members Apple, Microsoft, Meta and Tesla are due this week, with other bellwethers including Texas Instruments, Boeing and Mastercard providing an idea about the state of the economy.However, with questions being asked about the amount of cash being invested in artificial intelligence, there is a little nervousness on trading floors about when profits will be realised.”The AI capex cycle is increasingly colliding with the real world: debt markets, power grids, and regulation,” wrote Matt Weller, head of market research at City Index.He added that “2026 capex estimates for the largest ‘hyperscalers’ is widely forecast to hit the $600 bn+ range, driven primarily by AI infrastructure. At the same time, major tech firms have leaned more heavily into debt issuance to fund the infrastructure race”.”This matters for earnings because the market’s attention is moving from ‘who spends the most’ to ‘who can sustain the spend without eroding free cash flow’, especially if AI monetisation takes longer than expected.”Developments in Washington are also being followed after some senators warned they would vote against upcoming spending bills following the second killing of a US citizen in Minneapolis, threatening another possible government shutdown.The dollar remained under pressure after its latest selloff sparked by talk of a joint intervention between US and Japanese authorities to support the yen.And in corporate news, Hong Kong-listed shares in China’s Zijin Gold International rose 1.5 percent after it agreed to buy Allied Gold, which owns gold mines in Africa, for US$4 billion. Its parent, Zijin Mining Group, soared more than six percent before paring the gains.Zijin Gold’s shares have tripled since listing in September. – Key figures at around 0815 GMT -Tokyo – Nikkei 225: UP 0.9 percent at 53,333.54 (close)Hong Kong – Hang Seng Index: UP 1.4 percent at 27,126.95 (close)Shanghai – Composite: UP 0.2 percent at 4,139.90 (close)London – FTSE 100: UP 0.3 percent at 10,177.21Dollar/yen: UP at 154.73 yen from 153.98 yen on MondayEuro/dollar: DOWN at $1.1870 from $1.1883Pound/dollar: UP at $1.3684 from $1.3682Euro/pound: DOWN at 86.74 pence from 86.85 penceWest Texas Intermediate: DOWN 0.5 percent at $60.37 per barrelBrent North Sea Crude: DOWN 0.6 percent at $65.23 per barrel

The leaders of India and the European Union will announce the “mother of all deals” on Tuesday, when they meet in New Delhi to formalise a huge trade pact reached after two decades of negotiations.EU chiefs and Prime Minister Narendra Modi hope the pact, which Modi said was concluded on Monday, will help shield against challenges from the world’s two leading economies, the United States and China.”People in the world are discussing this as a mother of all deals,” Modi said Tuesday in the capital New Delhi ahead of a meeting with European Commission President Ursula von der Leyen and European Council President Antonio Costa.”This deal will bring many opportunities for India’s 1.4 billion and many millions of people of the EU,” Modi said, adding the agreement “represents about 25 percent of global GDP, and one-third of global trade”.The EU leaders, who were guests of honour at India’s Republic Day parade on Monday, will meet Modi later Tuesday morning.The EU has eyed India — the world’s most populous nation — as an important market for the future.New Delhi sees the European bloc as an important source of much-needed technology and investment to rapidly upscale its infrastructure and create millions of new jobs.- ‘Highest level of access’ -Bilateral trade in goods reached 120 billion euros ($139 billion) in 2024, an increase of nearly 90 percent over the past decade, according to EU figures, with a further 60 billion euros ($69 billion) in trade in services.Under the agreement, India is expected to ease market access for key European products, including cars and wine, in return for easier exports of textiles and pharmaceuticals, among other things.”The EU stands to gain the highest level of access ever granted to a trade partner in the traditionally protected Indian market,” von der Leyen said on Sunday, adding that she expected exports to India to double.”We will gain a significant competitive advantage in key industrial and agri-good sectors.”For India, it would boost sectors including textiles, gems and jewellery, and leather goods, as well as the service sector, Modi said.For the EU, it is expected to slash tariffs on automobiles, wine and food exports to India.Talks went down to the wire on Monday, focusing on a few sticking points, including the impact of the EU’s carbon border tax on steel, according to sources familiar with the discussions.- ‘Clear choice’ -The accord comes as both Brussels and New Delhi have sought to open up new markets in the face of US tariffs and Chinese export controls.India and the EU were also expected to conclude an accord to facilitate movement for seasonal workers, students, researchers and highly skilled professionals, and a security and defence pact.”India and Europe have made a clear choice. The choice of strategic partnership, dialogue and openness,” von der Leyen wrote on social media. “We are showing a fractured world that another way is possible.”India is on track to become its fourth-largest economy this year, according to International Monetary Fund projections.New Delhi, which has relied on Moscow for key military hardware for decades, has tried to cut its dependence on Russia in recent years by diversifying imports and pushing its own domestic manufacturing base.Europe is doing the same with regard to the United States.

South Korea’s government on Tuesday held emergency talks after US President Donald Trump said he will raise tariffs on South Korean goods, including autos, lumber and pharmaceuticals.Trump said Monday that he would raise tariffs on the goods, accusing South Korea of not living up to an earlier trade pact struck with Washington.South Korea’s presidential office said it had not been officially informed about the tariff hike plans in advance.The increase would bring tariff levels from 15 percent to 25 percent.”South Korea’s Legislature is not living up to its Deal with the United States,” Trump wrote on his Truth Social platform.He added that he was increasing tariff rates “because the Korean Legislature hasn’t enacted our Historic Trade Agreement, which is their prerogative.”On Tuesday, Seoul convened an emergency meeting to hash out a response, with Trade and Industry Minister Kim Jung-kwan, currently in Canada, joining remotely.”Our government intends to convey its commitment to implementing the tariff agreement to the US side, while responding in a calm and measured manner,” Seoul said in a statement.The country added it believed Washington’s “tariff hikes only take effect after administrative steps such as publication in the Federal Register”.South Korea has said Trade Minister Kim will travel to Washington for talks on the issue with US Commerce Secretary Howard Lutnick.Trump’s apparent about-face comes months after Washington and Seoul struck a trade and security deal, capping a period of tense negotiations.The agreement was finalized after Trump met his South Korean counterpart Lee Jae Myung in October, and included investment promises by South Korea alongside tariff cuts by the United States.Since then, it has remained in something of a legal limbo in South Korea.Seoul’s presidential office insisted in November that the deal does not require parliamentary approval, arguing it represents a memorandum of understanding rather than a binding legal document.Asked whether the tariff deal had been submitted to parliament for approval, a senior official told AFP on Tuesday they were looking into it but did not elaborate.Under the pact, Washington would maintain levies of up to 15 percent on South Korean goods including vehicles, car parts and pharmaceuticals.Crucially, the deal’s terms brought US tariffs on South Korean cars down from a 25 percent level.Trump’s latest threat, if enacted, would reverse that.- Export pain -The auto industry accounts for 27 percent of South Korea’s exports to the United States, which takes in nearly half of the country’s car exports.A reversal to a higher tariff level could also put South Korean exports in a less advantageous position compared with economies like Japan and the European Union, which have both struck deals for a 15 percent US tariff.The Trump administration has yet to issue formal notices to enact the changes.The US president’s threat targeting South Korea is his latest against key trading partners in recent days.Over the weekend, Trump warned Canada that if it concludes a trade deal with China, he would impose a 100 percent tariff on all goods coming across the border.Earlier in January, Trump also threatened to slap tariffs on multiple European nations until his purchase of Greenland is achieved. He has since backed off the threat.