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US President Donald Trump imposed new tariffs to punish or favor major trading partners Wednesday, as governments raced to strike deals with Washington less than 24 hours before an August 1 deadline.South Korea squeezed in at the last moment, securing agreement on a 15 percent tariff for exports to the United States — significantly below the 25 percent that Trump had earlier threatened to introduce.But Trump also announced crippling 50 percent tariffs on Brazil and a 25 percent levy on Indian exports, while warning Canada it would face trade repercussions for planning to recognize a Palestinian state.The 15 percent rate on Seoul — Washington’s key security ally — was equivalent to levies determined from US trade deals with Japan and the European Union.An additional unspecified “large sum of money” will be invested by South Korea in the United States, the American leader said.Seoul’s presidential office said tariffs on automobiles — one of Seoul’s key exports — would also stay at 15 percent. Trump hit Brazil with high tariffs as well as sanctions against the judge overseeing a trial of his far-right ally Jair Bolsonaro, who is accused of attempting a coup in Latin America’s biggest economy.But he delayed its implementation from Friday to August 6, and crucially exempted many products from the prohibitive levy, including orange juice, civil aircraft, iron ore and some energy products.- Canada trade threat -He had threatened to wield US economic might to punish Brazil — and its Supreme Court Justice Alexandre de Moraes, in particular — for what he has termed a “witch hunt” against former president Bolsonaro.Brazilian President Luiz Inacio Lula da Silva said he would defend “the sovereignty of the Brazilian people in the face of measures announced by the president of the United States.”Among Trump’s latest announcements were a 25 percent duty on Indian goods to begin Friday — slightly lower than previously threatened — after talks between Washington and New Delhi failed to bring about a trade pact.India would face an unspecified “penalty” over purchases of Russian weapons and energy as well, Trump said.”I don’t care what India does with Russia. They can take their dead economies down together, for all I care,” Trump wrote on his Truth Social platform.”We have done very little business with India, their Tariffs are too high, among the highest in the World,” he added.Canada’s trade relations with the United States also came under threat after Prime Minister Mark Carney announced plans to recognize a Palestinian state at the UN General Assembly in September.”Wow! Canada has just announced that it is backing statehood for Palestine,” the US president wrote on his Truth Social platform. “That will make it very hard for us to make a Trade Deal with them.”- ‘Big day for America’ -He also signed an order Wednesday to impose previously threatened 50 percent tariffs on certain copper products and end a tariff exemption for low-value shipments from abroad.It left out products like copper ores, concentrates and cathodes, bringing some relief to industry.As Trump’s deal deadline neared, Commerce Secretary Howard Lutnick told Fox News that Washington had struck trade deals with Cambodia and Thailand, but provided no details of the accords.The US tariff hikes due Friday were initially announced in April as part of a package in which Trump slapped a minimum 10 percent levy on goods from almost all trading partners — citing unfair trade practices.This rate was set to rise to varying levels for dozens of economies such as the European Union, Japan and others, but Washington twice postponed their implementation as financial markets gyrated.The US leader insisted Wednesday that the August 1 deadline “will not be extended” any further.In a Truth Social post, he vowed that this would be “a big day for America.”So far, Britain, Vietnam, Japan, Indonesia, the Philippines, the EU and South Korea have reached initial deals with Washington to secure less punishing conditions.While the United States and China earlier slapped escalating tariffs on each other’s products, both sides are working to further a truce maintaining duties at lower levels.Although Trump has promised a surge in government revenues from his duties, economists warn that higher tariffs can fuel an uptick in inflation and weigh on economic growth. This could change consumption patterns.Already, consumers face an overall average effective tariff rate that is the highest since the 1930s, according to a recent analysis by The Budget Lab at Yale University.The effect on consumer prices has been limited so far. But analysts cautioned this could become more pronounced as businesses run down on existing inventory and pass on more costs to buyers.

Asian markets mostly fell Thursday while the dollar held most of its gains as traders weighed a cautious Federal Reserve with strong tech earnings and Donald Trump’s tariffs on key economies South Korea and India.The central bank held interest rates steady and refrained from suggesting it would cut any time soon despite as he brushed off relentless pressure from the US president, with recent data indicating inflation remains elevated.While two members of the policyboard took the rare move of dissenting and voting to cut, investors pared their bets on a reduction in September sending the dollar rallying against its peers. The bank cited a moderation in economic activity in the first half and “solid” labour market conditions but warned “uncertainty about the economic outlook remains elevated”, while inflation too is somewhat heightened.Asked about Trump’s tariff deals and whether they brought more certainty, Fed boss Jerome Powell told reporters: “It’s been a very dynamic time for these trade negotiations.”He added that “we’re still a ways away from seeing where things settle down”.Kerry Craig of JP Morgan Asset Management said: “With some details on baseline tariffs only just becoming clear, and many of the details of the recently agreed ‘deals’ still to be ironed out, the risk is that inflation rates will continue to rise in the coming months.”US jobs data due Friday will be closely watched for a fresh look at the state of the world’s top economy, with a weak reading likely to put pressure on the Fed to cut.The latest developments on the trade front saw Trump announce a deal that sees 15 percent tariffs on South Korean goods and a commitment from Seoul to invest $350 billion in the United States.He also said India would face 25 percent tolls, coupled with an unspecified penalty over New Delhi’s purchases of Russian weapons and energy.And he signed an executive order implementing an additional tax on Brazilian products, as he lambasts what he calls Brazil’s “witch hunt” against his far-right ally, former president Jair Bolsonaro on coup charges.Traders are keeping tabs on talks with other countries that are yet to sign deals with Washington ahead of Trump’s self-imposed Friday deadline.After a broadly negative day on Wall Street, Asian markets struggled.Hong Kong, Shanghai, Sydney, Singapore, Seoul, Manila, Wellington and Jakarta all fell, though Tokyo, Taipei, Mumbai and Bangkok edged up.London, Paris and Frankfurt opened on a high.The yen retreated against the dollar after the Bank of Japan decided against hiking interest rates, while lifting economic growth and inflation costs. It also cautiously welcomed the country’s trade deal with the United States.Traders had been given a healthy lead from the tech sector after titans Microsoft and Meta posted better-than-expected earnings, sending their stocks soaring in after-market trade. Amazon and Apple are due to release later Thursday.- Key figures at around 0715 GMT -Tokyo – Nikkei 225: UP 1.0 percent at 41,069.82 (close)Hong Kong – Hang Seng Index: DOWN 1.5 percent at 24,811.86Shanghai – Composite: DOWN 1.2 percent at 3,573.21 (close)London – FTSE 100: UP 0.5 percent at 9,181.93Euro/dollar: UP at $1.1440 from $1.1409 on WednesdayPound/dollar: UP at $1.3248 from $1.3239Dollar/yen: UP at 149.71 yen from 149.50 yenEuro/pound: UP at 86.34 pence from 86.15 penceWest Texas Intermediate: UP 0.1 percent at $70.06 per barrelBrent North Sea Crude: UP 0.1 percent at $73.29New York – Dow: DOWN 0.5 percent at 44,632.99 (close)

Chinese authorities summoned Nvidia representatives on Thursday to discuss “serious security issues” over some of its artificial intelligence chips, as the US tech giant finds itself entangled in trade tensions between Beijing and Washington.Nvidia is a world-leading producer of AI semiconductors, but the United States effectively restricts which chips it can export to China on national security grounds.A key issue has been Chinese access to the “H20”, a less powerful version of Nvidia’s AI processing units that the company developed specifically for export to China.The California-based firm said this month it would resume H20 sales to China after Washington pledged to remove licensing curbs that had halted exports.But the firm still faces obstacles — US lawmakers have proposed plans to require Nvidia and other manufacturers of advanced AI chips to include built-in location tracking capabilities.And Beijing’s top internet regulator said Thursday it had summoned Nvidia representatives to discuss recently discovered “serious security issues” involving the H20.The Cyberspace Administration of China said it had asked Nvidia to “explain the security risks of vulnerabilities and backdoors in its H20 chips sold to China and submit relevant supporting materials”.The statement posted on social media noted that, according to US experts, location tracking and remote shutdown technologies for Nvidia chips “are already matured”.The announcement marked the latest complication for Nvidia in selling its advanced products in the key Chinese market, where it is in increasingly fierce competition with homegrown technology firms.- Nvidia committed -CEO Jensen Huang said during a closely watched visit to Beijing this month that his firm remained committed to serving local customers.Huang said he had been assured during talks with top Chinese officials during the trip that the country was “open and stable”.”They want to know that Nvidia continues to invest here, that we are still doing our best to serve the market here,” he said.Nvidia this month became the first company to hit $4 trillion in market value — a new milestone in Wall Street’s bet that AI will transform the global economy.Jost Wubbeke of the Sinolytics consultancy told AFP the move by China to summon Nvidia was “not surprising in the sense that targeting individual US companies has become a common tool in the context of US-China tensions”.”What is surprising, however, is the timing,” he noted, after the two countries agreed to further talks to extend their trade truce.”China’s action may signal a shift toward a more assertive stance,” Wubbeke said.Beijing is also aiming to reduce reliance on foreign tech by promoting Huawei’s domestically developed 910C chip as an alternative to the H20, he added.”From that perspective, the US decision to allow renewed exports of the H20 to China could be seen as counterproductive, as it might tempt Chinese hyperscalers to revert to the H20, potentially undermining momentum behind the 910C and other domestic alternatives.”New hurdles to Nvidia’s operation in China come as the country’s economy wavers, beset by a years-long property sector crisis and heightened trade headwinds under US President Donald Trump.Chinese President Xi Jinping has called for the country to enhance self-reliance in certain areas deemed vital for national security — including AI and semiconductors — as tensions with Washington mount.The country’s firms have made great strides in recent years, with Huang praising their “super-fast” innovation during his visit to Beijing this month.

President Donald Trump said Wednesday the United States will impose a 15 percent tariff on imports from South Korea, as he touted a “full and complete trade deal” between the two countries.”South Korea will give to the United States $350 Billion Dollars for Investments,” Trump said in a post on his Truth Social platform, adding that the country would buy $100 billion in liquefied natural gas or other energy products.The 15 percent rate is below a 25 percent tariff that Trump had threatened earlier, and was equivalent to deals with Japan and the European Union.Trump added that an additional unspecified “large sum of money” will be invested by Seoul.”This sum will be announced within the next two weeks when the President of South Korea, Lee Jae Myung, comes to the White House for a Bilateral Meeting,” Trump said, offering congratulations to his South Korean counterpart for his “electoral success.”South Korea’s Finance Minister Koo Yun-cheol said Seoul’s commitment to help the United States revive its shipbuilding industry was instrumental in reaching the deal.”I believe MASGA made the greatest contribution to reaching today’s agreement,” Koo said at a news conference in Washington, referring to the “Make American Shipbuilding Great Again” proposal.”Our world-class shipbuilding companies, equipped with the highest level of ship design and construction capabilities, are expected to help revive the US shipbuilding industry,” he said.Shares in South Korean shipbuilder Hanwha Ocean, which owns a shipyard in Philadelphia, soared more than 15 percent Thursday. The leaders’ White House meeting will be their first since Lee assumed the presidency in June.In a statement on Facebook, Lee called the deal “the first major trade challenge” since his administration took power, adding: “We have overcome a major hurdle.””Through this deal, the government has eliminated uncertainty surrounding export conditions and ensured that US tariffs on our exports are either lower than or equal to those imposed on our major trade competitors.”- Mixed reaction -Lee was elected in a snap vote last month following the impeachment of predecessor Yoon Suk Yeol over his disastrous martial law declaration in December.The deal marks an early victory for Lee’s tenure as head of the export-reliant economy, Asia’s fourth biggest.”This agreement represents the convergence of US interests in revitalizing its manufacturing sector and our determination to strengthen Korean companies’ competitiveness in the American market,” Lee’s statement continued.But there were mixed reactions in South Korea. Its six major business associations, including the Korea Chamber of Commerce, said in a joint statement: “We view this agreement as a critical milestone that will not only ease trade-related uncertainties but also pave the way for a significant strengthening of economic cooperation between the two countries.”With much of the external uncertainty now resolved, the Korean business community will redouble efforts to boost domestic investment and job creation.”But a handful of civic groups, including farmers and labour organisations, protested at the US Embassy in central Seoul, opposing “Trump’s madman strategy.” Demonstrators held signs reading “No Trump! No King!” and pointed out that there may be additional negotiations when Lee meets Trump.”Trump’s actions amount to excessive interference in our domestic affairs,” said Park Sung-hoon, head of the Korean Apple Growers Association.Since returning to the White House in January, Trump has imposed a sweeping 10 percent tariff on trading partners — with extra rates for dozens of economies set for August 1 — alongside steeper tolls on steel, aluminium and autos.News of the deal with South Korea came as Trump on Wednesday imposed 25 percent tariffs on Indian goods and 50 percent on those from Brazil.

Hawking clothes outside the garment factory where her daughter toils inside, a Laos vendor weighs US President Donald Trump’s threat of trade tariffs that may soon snarl both their livelihoods.”I just live day by day. For now, I still have my business, and the factory is operating as usual,” she told AFP, speaking on condition of anonymity in the capital Vientiane.”I’m not too worried about my daughter’s job yet,” she added. Then again, she says: “I don’t know anything about what the US will decide.”Landlocked Laos — a country of only eight million — has a gloomy outlook as it counts down to a Friday deadline when Trump says a 40 per cent levy will kick in unless a trade deal is sealed.The rate is among the highest Trump has touted in his global tariff blitz, which has yielded a handful of deals with countries including Britain, Japan and Vietnam but left dozens others scrambling for a pact.Laos has limited exports, little leverage and supply chains deeply entwined with US trade rival China.The United States had a trade deficit of more than $760 million with Laos last year — singling it out for steep tolls alongside other nations Trump sees as imbalanced business partners.”A 40 percent tariff is just a nail in the coffin for any industry trying to ship to the United States,” said John F. Somers, head of garment manufacturing firm Diep Vu Co. Only a handful of factories, mostly in the capital, supply the US market and sales make up only between three and six percent of the country’s gross domestic product.But with the Southeast Asian country already suffering from high inflation and a severe labour shortage, Trump’s default tariff could still have a devastating effect, industry insiders say.- ‘Cause for suspicion’ -“We estimate about 20,000 workers or more could be impacted,” said Xaybandith Rasphone, head of the Association of the Lao Garment Industry.”We’re not certain about the exact number yet, but it could easily be higher if companies shut down,” said Xaybandith, who is also vice-president of the Lao National Chamber of Commerce and Industry (LNCCI).He warned between 35 and 40 factories could be affected if buyers are spooked by the tariffs.”If the tariff stays in place, some factories will definitely close,” he said. “Finding alternative markets takes time, negotiations and a lot of effort. It could take years.”Like neighbouring Cambodia and Vietnam, Laos is a hub of the garment industry — producing brands for western markets including Dr. Martens.But the production of mattresses, silicone products and solar panels also stands to be impacted.Solar panel manufacturing has exploded in Laos since 2023 and driven up its export figures after Trump hit China with a 50 percent tariff on the renewable power sources.However the US trade offensive has focussed on “transshipment” — a practice it alleges some countries use to help China dodge American tariffs by repackaging its goods for American markets.Casey Tolzman, head of the Lao-American Business Association (LABA), said the explosion of Laos’ solar industry had likely been “a cause for suspicion” in Washington.- ‘A big question’ -Rules governing the source of materials and the level of Laotian labour required to define products as domestically produced may prove the country’s biggest bargaining chip.”A big question for countries like Cambodia and Laos is what they can offer the US that’s attractive enough to reach a deal,” Tolzman said.”Any deal would probably need to see Laos enforce stricter rules on transshipment and country of origin, to ensure products aren’t just coming from China and getting a Laos label slapped on.”The US may also ask Vientiane to crack down on internet scam centres targeting wealthy Americans from compounds in Laos, or seek concessions for American goods to enter the market, he added.The LABA and LNCCI say they are helping the government draft an appeal asking for tariffs to drop back to previous levels, or at least be capped at 20 percent.But Diep Vu Co boss Somers warns even if Laos manages to reach a deal with Washington, a bigger test soon lies ahead.Laos is on track to graduate from “Least Developed Country” status next year, meaning it is set to lose duty-free access to the European Union — dealing another blow.”We’ll be at a competitive disadvantage, our industry will probably collapse within a few years,” Somers warned. “The real discussion is the EU relationship with Laos, not just what the US is doing.”

Time is running short for governments to strike deals with Washington to avert tariff hikes that Donald Trump has vowed against dozens of economies — and the US president continues to expand his trade wars.As the clock ticked down on a Friday deadline for higher levies to take effect on goods from various trading partners, Trump announced a trade deal with South Korea and separate duties on Brazilian and Indian imports.He also signed an order Wednesday to impose previously-threatened 50 percent tariffs on certain copper products and end a tariff exemption for low-value shipments from abroad.The tariff hikes due Friday were initially announced in April as part of a package where Trump slapped a 10 percent levy on goods from almost all trading partners — citing unfair trade practices.This rate was set to rise to varying levels for dozens of economies like the European Union, Japan and others, but Washington twice postponed their implementation as financial markets gyrated.So far, Britain, Vietnam, Japan, Indonesia, the Philippines, the EU and South Korea have reached initial deals with Washington to secure less punishing conditions.While the United States and China earlier slapped escalating tariffs on each other’s products, both sides are working to further a truce maintaining duties at lower levels.- ‘Big day’ -But Trump has been pushing ahead in his efforts to reshape global trade. The US leader insisted Wednesday that the August 1 deadline “will not be extended” any further.In a Truth Social post, he vowed that this would be “a big day for America.”Although Trump has promised a surge in government revenues from his duties, economists warn that higher tariffs can fuel an uptick in inflation and weigh on economic growth. This could change consumption patterns.Already, consumers face an overall average effective tariff rate that is the highest since the 1930s, according to a recent analysis by The Budget Lab at Yale University.The effect on consumer prices has been limited so far. But analysts cautioned this could become more pronounced as businesses run down on existing inventory and pass on more costs to buyers.- Tariff blitz, delays -Among Trump’s latest announcements were a 25 percent duty on Indian goods to begin Friday — slightly lower than previously threatened — after talks between Washington and New Delhi failed to bring about a trade pact.India would face an unspecified “penalty” over purchases of Russian weapons and energy as well, Trump said.He also unveiled a 50 percent tariff on Brazilian goods, saying its government’s policies and actions threaten US national security.But he delayed its implementation from Friday to August 6 and crucially exempted many products from the prohibitive levy, including orange juice, civil aircraft, iron ore and some energy products.Trump inked an order too for a 50 percent tariff to kick in Friday on goods like copper pipes and wiring, making good on an earlier vow to impose these duties.But the levy, which came after a Commerce Department probe on national security grounds, was less sweeping than anticipated.It left out products like copper ores, concentrates and cathodes, bringing some relief to industry.Meanwhile, Seoul landed a deal with Trump in which South Korean products would face a 15 percent tariff when entering the United States — significantly below a 25 percent level threatened.

Technology giant Microsoft on Wednesday said its profit soared above expectations in the recently ended quarter, driven by its cloud computing and artificial intelligence (AI) units.Microsoft reported profit of $27.2 billion on revenue of $76.4 billion, some $29.9 billion of which was brought in by its Intelligent Cloud business.”Cloud and AI is the driving force of business transformation across every industry and sector,” Microsoft chief executive Satya Nadella said in an earnings release.”We’re innovating across the tech stack to help customers adapt and grow in this new era.”Microsoft’s Azure cloud computing offerings brought in more than $75 billion for the company’s fiscal year, which ended on June 30, in an increase of 34 percent from the prior year, according to Nadella.Microsoft shares jumped about 7 percent in after-market trades that followed release of the earnings figures.”This was a slam-dunk quarter for Microsoft with cloud and AI driving significant business transformation across every sector and industry,” Wedbush Securities analyst Dan Ives said in a note to investors.”The company continues to capitalize on the AI Revolution.”Microsoft is well-positioned to make money as increasing numbers of companies ramp up efforts to take advantage of artificial intelligence in their businesses, according to Ives.Microsoft was one of the first tech giants to double down on artificial intelligence when the launch of ChatGPT in 2022 rocked the tech industry.Like its rivals, it has spent massively on building the infrastructure necessary to power the AI revolution, with analysts keeping a close eye on the return on investment.The company in January said it was on track to pump about $80 billion into capital and infrastructure in the fiscal year.Nadella has said finding enough power sources for its AI data center needs was a priority.Microsoft in early July slashed a little less than four percent of its global workforce as it seeks to cut layers of middle management and leverage new technologies.”We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace,” a Microsoft spokesperson said in an email.The job cuts follow a round in May that saw about 6,000 positions culled from its global workforce.The company, which is advancing in its plans to deploy AI across all its products, said it was working to “empower employees to spend more time focusing on meaningful work by leveraging new technologies and capabilities.”

US President Donald Trump said Wednesday that imports from India will face 25 percent tariffs, while also announcing an unspecified “penalty” over New Delhi’s purchases of Russian weapons and energy.The measures will kick in on Friday, Trump posted on his Truth Social platform, adding to a bevy of other tariff hikes — some up to 50 percent — set to take effect the same day.In a separate post, Trump said the August 1 deadline “stands strong, and will not be extended.” He had previously issued multiple delays to his so-called “reciprocal” tariffs since first announcing them in early April, while instituting an interim 10 percent baseline.The 25 percent tariff on India would be marginally lower than the rate announced in April, but is higher than those of other Asian countries that have struck preliminary trade agreements with Washington.India, the world’s most populous country, was one of the first major economies to engage the Trump administration in broader trade talks.But six months later, Trump’s sweeping demands and India’s reluctance to fully open its agricultural and other sectors have so far prevented New Delhi from sealing a deal.”Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country,” Trump said Wednesday morning.He added that India has “always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE.”In addition to the 25 percent tariff, India will face “a penalty for the above,” Trump said, without any specification.Later Wednesday he told reporters that talks on the tariffs were ongoing and “we’ll see what happens,” but he did not elaborate on the penalty.The measure comes as the 79-year-old Republican has signaled he intends to tighten US pressure on Moscow to halt fighting in Ukraine and negotiate a peace deal.On Tuesday, Trump said he was giving Russian President Vladimir Putin 10 days — which would mean the end of next week — to change course in Ukraine or face new tariffs.He had previously threatened to impose “secondary tariffs” that would target Russia’s remaining trade partners — such as China and India — seeking to impede Moscow’s ability to survive already sweeping Western sanctions.Despite the tariff threat, New Delhi said it was committed to continuing negotiations on “a fair, balanced and mutually beneficial bilateral trade agreement.”- China trade talks -Shortly after announcing the tariffs on New Delhi, Trump said he had struck a deal with India’s archrival Pakistan to jointly develop its oil reserves.”Who knows, maybe they’ll be selling oil to India some day!” he posted on Truth Social.Trump has set out to upend the global economy by trying to leverage US economic power to squeeze trading partners with tariffs and force foreign companies to move to the United States.He has already announced deal outlines with five countries — Britain, Vietnam, Japan, Indonesia and the Philippines — as well as the one with the 27-nation EU.US and Chinese officials held talks this week in Stockholm on extending a trade truce that has temporarily lowered tariffs from soaring triple-digits.While no deal was announced at the meetings, both sides are eyeing an extension ahead of the August 12 deadline.Meanwhile Trump announced 50 percent tariffs on Brazil — in part to pressure the South American ally to shut down the trial of far-right former president Jair Bolsonaro on coup charges.He has also instituted separate levies targeting specific sectors, including steel, copper and automobiles.Trump has imposed many of his sweeping tariffs citing emergency authorities, which are being challenged in US court.

US President Donald Trump’s decision to slap harsh tariffs on Indian exports and a “penalty” on purchases of Russian weapons and energy will cost thousands of jobs and could fundamentally change the nature of bilateral ties, experts said Wednesday.Months of negotiations between the two countries over an interim trade deal had stalled in recent weeks over Trump’s sweeping demands and New Delhi’s reluctance to fully open its agricultural and dairy sectors to US imports.On Wednesday, two days before the deadline for the reintroduction of Trump’s so-called “reciprocal tariffs”, the US president announced that Indian shipments to the United States would be hit with a 25 percent tariff.He added that an unspecified “penalty” for acquiring military equipment and oil from Russia would also kick in from August 1.Kirit Bhansali, Chairman of India’s Gem and Jewellery Export Promotion Council, said the move was a “deeply concerning development” that would have “far-reaching repercussions across India’s economy” and threaten “thousands of livelihoods”.For his sector alone, the United States is India’s “single largest market, accounting for over $10 billion in exports — nearly 30 percent of our industry’s total global trade,” he said.”A blanket tariff of this magnitude will inflate costs, delay shipments, distort pricing, and place immense pressure on every part of the value chain — from small karigars (artisans) to large manufacturers,” he added. “We recognise the need to address trade imbalances, but such extreme measures undermine decades of economic cooperation.”Indian goods exports to the United States amounted to $87.4 billion in 2024, according to US data, with top sectors including pharmaceuticals, gems, textiles and smartphones.- ‘Completely unacceptable’ -Trump’s targeting of India with such a high rate of levies would complicate ongoing negotiations for a more comprehensive trade agreement, said Biswajit Dhar, of the Council for Social Development think tank. “It was already a difficult set of negotiations, but both sides said we were making progress. And there was no hard and fast deadline,” he said, referring to previous dates for the imposition of his tariffs that Trump had extended unilaterally.Dhar added that Trump’s threatened “penalty” for India’s ties with Russia was “completely unacceptable for a sovereign state”.”A sovereign state can’t be told who to maintain relations with. Whether it’s Russia or China or whoever. You can’t browbeat a country into accepting your conditions,” he said.Analysts warned that US-India relations may be entering new territory, after years of warming as Washington has cultivated New Delhi as a counterweight to rising Chinese power.”President Trump’s messaging has damaged many years of careful, bipartisan nurturing of the US-India partnership in both capitals,” said Ashok Malik, of business consultancy The Asia Group, in a social media post.”Politically the relationship is in its toughest spot since the mid-1990s.”Praveen Donthi of the International Crisis Group said the announcement underscored the fact that Trump did not “differentiate between friends and foes when it comes to tariffs”.”In the past when India purchased S400 missile system from Russia, there were no sanctions because of the bipartisan consensus that existed in the US about India because of its value as a democratic counterweight to China. “But now that’s gone.” The move could have far-reaching consequences, including seeing New Delhi attempt “to mend its relations with Beijing,” he said.

Stock markets saw mostly muted gains in Europe and on Wall Street on Wednesday as investors waited for earnings from US tech giants, while the dollar rose from recent lows ahead of an interest-rate call from the Federal Reserve.While most analysts expect the Fed to keep its benchmark rate unchanged, a stronger-than-expected showing for US growth in the second quarter bolstered expectations that a future cut could be in the cards — potentially helping the greenback.The US economy expanded 3.0 percent in the quarter, above the consensus analyst forecast of 2.5 percent, though experts cautioned over the distorting effects of President Donald Trump’s tariffs blitz.”The Fed isn’t expected to change rates but the market will analyse the accompanying commentary for signals on what could happen next,” said Russ Mould, investment director at AJ Bell.Investors will also be watching the latest US jobs data due Friday for further clues if the Fed will cut rates — as President Donald Trump has aggressively sought from its chief, Jerome Powell.”The data remains consistent with a cooling growth story, but there appears to be little pressing need for an interest rate cut despite the president’s demands,” said James Knightley, an economist at ING.Before then, Meta and Microsoft are due to post earnings after the Wall Street close, with results from Amazon and Apple coming Thursday.”We’ve got four of the Magnificent Seven mega-cap US tech stocks reporting over the next two days… any signs of weakness could damage investor sentiment,” Mould said.Investors will also focus on the firms’ forecasts in light of Trump’s tariffs and their colossal investments in artificial intelligence.In Europe, the Paris and Frankfurt indexes gained after the eurozone economy unexpectedly expanded in the second quarter, which preceded a weekend tariffs deal between the US and the EU that had also bolstered sentiment.After a deal was also reached with Japan over the past week, focus is now on negotiations between Washington and Beijing to extend an agreement to lower eye-watering levies that threatened the world’s largest economies.The two-day meeting in Stockholm ended Tuesday without a resolution but with the US team voicing optimism they could announce a second 90-day truce. Among the countries still to reach a trade deal with Washington are Brazil, which faces 50 percent tariffs, South Korea and India.Trump said Tuesday that New Delhi could face a rate of 20 to 25 percent, adding: “India has been a good friend, but India has charged basically more tariffs than almost any other country. You just can’t do that.”- Key figures at around 1600 GMT -New York – S&P 500: UP 0.1 percent at 6,380.06 pointsNew York – Dow Jones: FLAT at 44,630.11New York – Nasdaq: UP 0.4 percent at 21,117.43London – FTSE 100: FLAT at 9,136.94 (close)Paris – CAC 40: UP 0.1 percent at 7,861.96 (close)Frankfurt – DAX: UP 0.2 percent at 24,262.22 (close)Tokyo – Nikkei 225: DOWN 0.1 percent at 40,654.70 (close)Hong Kong – Hang Seng Index: DOWN 1.4 percent at 25,176.93 (close)Shanghai – Composite: UP 0.2 percent at 3,615.72 (close)Euro/dollar: DOWN at $1.1473 from $1.1554 on TuesdayPound/dollar: DOWN at $1.3272 from $1.3357Dollar/yen: UP at 149.09 yen from 148.50 yenEuro/pound: DOWN at 86.43 pence from 86.47 penceWest Texas Intermediate: UP 1.4 percent at $7.18 per barrelBrent North Sea Crude: UP 1.1 percent at $72.47 per barrel