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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

Stock markets were mixed in Europe and on Wall Street on Wednesday while the dollar rose further from recent lows as investors took a cautious approach ahead of earnings from US tech giants and the latest 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 economic growth in the second quarter bolstered expectations that a future cut could be in the cards — potentially helping the greenback.”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.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 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.Mould added that following the Fed’s update “the central bank will certainly be watching jobs data on Friday like a hawk, and that result will feed into its future monetary policy decisions”.”All the while, 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.”Meta and Microsoft are due to post earnings after the Street close, with Amazon and Apple results coming Thursday.Investors will also focus on the firms’ forecasts in light of Trump’s tariffs and their colossal investments in artificial intelligence.In Europe, Paris and Frankfurt indexes rose 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.”Oil prices fell, having rallied Tuesday after Trump reiterated his warning of new sanctions on Russia, a major energy power, unless it reaches a truce deal with Ukraine.- Key figures at around 1400 GMT -New York – S&P 500: UP 0.1 percent at 6,375.13 pointsNew York – Dow Jones: DOWN 0.1 percent at 44,599.79New York – Nasdaq: UP 0.2 percent at 21,142.12London – FTSE 100: DOWN 0.2 percent at 9,121.56 pointsParis – CAC 40: UP 0.5 percent at 7,896.91 Frankfurt – DAX: UP 0.2 percent at 24,268.07Tokyo – 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)New York – Dow: DOWN 0.5 percent at 44,632.99 (close)Euro/dollar: DOWN at $1.1464 from $1.1554 on TuesdayPound/dollar: DOWN at $1.3275 from $1.3357Dollar/yen: UP at 149.06 yen from 148.50 yenEuro/pound: DOWN at 86.37 pence from 86.47 penceWest Texas Intermediate: UP 0.6 percent at $69.58 per barrelBrent North Sea Crude: UP 0.5 percent at $72.03 per barrel

Stock markets diverged on Wednesday and the dollar slid further from recent highs as investors awaited earnings from US tech giants and the latest interest-rate call from the Federal Reserve.Market watchers also kept tabs on China-US developments after the two countries agreed further talks to extend their tariffs truce.”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.Following Wednesday’s update “the central bank will certainly be watching (US) jobs data on Friday like a hawk, and that result will feed into its future monetary policy decisions”, Mould added.”All the while, we’ve got four of the Magnificent Seven mega-cap US tech stocks reporting over the next two days. They have the power to move markets and any signs of weakness could damage investor sentiment.After Asia’s major stock markets closed mixed, London was down slightly around midday.But Paris and Frankfurt climbed as official data showed the eurozone economy unexpectedly expanded in the second quarter, which preceded a weekend tariffs deal between the US and the EU, which had also bolstered sentiment.After a deal was also reached with Japan over the past week, focus has been 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 without a resolution but with the US team voicing optimism they could announce a second 90-day truce.The general feeling is that the moratorium will be extended but there remains some nervousness, with many other countries still to reach agreements ahead of Trump’s August 1 deadline.Among the countries still to reach a deal are Brazil, which faces 50 percent tariffs, India and South Korea.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.”Major earnings releases from tech titans Meta and Microsoft are due Wednesday, with Amazon and Apple coming Thursday.As well as the results, focus will be on the firms’ forecasts in light of Trump’s tariffs and their colossal investments in artificial intelligence.In London, shares in British bank HSBC and military equipment maker BAE Systems dropped around 2.5 percent following mixed earnings updates Wednesday.Oil prices fell, having rallied Tuesday after Trump reiterated his warning of new sanctions on Russia, a major energy power, unless it reaches a truce deal with Ukraine.- Key figures at around 1100 GMT -London – FTSE 100: DOWN 0.3 percent at 9,112.42 pointsParis – CAC 40: UP 0.5 percent at 7,896.33 Frankfurt – DAX: UP 0.2 percent at 24,261.10Tokyo – 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)New York – Dow: DOWN 0.5 percent at 44,632.99 (close)Euro/dollar: DOWN at $1.1540 from $1.1554 on TuesdayPound/dollar: UP at $1.3365 from $1.3357Dollar/yen: DOWN at 148.19 yen from 148.50 yenEuro/pound: DOWN at 86.37 pence from 86.47 penceWest Texas Intermediate: DOWN 1.0 percent at $68.52 per barrelBrent North Sea Crude: DOWN 1.0 percent at $71.80 per barrel

Bank giant HSBC said Wednesday that group profits fell in the first half on higher costs but noted that it was “well positioned” to deal with the effects of US tariffs.Profit after tax dropped by one third to $12.4 billion compared with the first six months of 2024, hit by restructuring costs and an impairment on its stake in a Chinese lender.The London-headquartered bank is months into a shakeup aimed at simplifying the group’s structure and delivering $1.5 billion in annual cost savings in 2027.It comes as the bank sector faces volatile trading as a result of US President Donald Trump’s tariffs onslaught.”We have delivered these results in an ongoing period of uncertainty,” chief executive Georges Elhedery said in call with reporters Wednesday.”It has become increasingly important to simplify the organisation and make it more agile,” he added.The bank recorded a $2.1 billion impairment linked to its stake in China’s Bank of Communications, which was recapitalised by the country’s finance ministry this year.HSBC last year reported a $3 billion charge on the value of its stake in the Chinese lender, which was hit by property loan writeoffs.Elhedery said that HSBC is “making positive progress” in its structural overhaul, which began in October, shortly after he became chief executive.Operating expenses increased four percent, which the bank partly attributed to restructuring and related costs. The bank generates most of its revenue in Asia and has spent several years pivoting to the region, vowing to develop its wealth business and target fast-growing markets.HSBC shares fell around 2.5 percent in morning deals on London’s top-tier FTSE 100 index despite a dividend payment and plans to repurchase up to $3 billion of shares.- Missed expectations -Elhedery said HSBC is “well positioned to manage the changes and uncertainties prevalent within the global environment in which we operate, including in relation to tariffs”.He noted that a “broader macroeconomic deterioration” could impact returns in future years.Profit before tax fell more than 26 percent to $15.8 billion, falling short of analyst expectations.First-half revenue declined nine percent to $34.1 billion.”Repositioning HSBC is not a simple task given its size and scale,” said Russ Mould, investment director at AJ Bell.”There are also challenges in its priority regions such as property market weakness in Hong Kong and mainland China.”It means investors must continue to brace themselves for setbacks in its results well into 2026,” he added.In Hong Kong, HSBC shares in were down 3.8 percent at the close.Morningstar senior equity analyst Michael Makdad said the bank “needs to make sure that shareholders in Asia remain on board with the strategic direction… centred on simplification and intensive cost-cutting, but without a radical overhaul of the entire business model”.Makdad added that its immediate challenge is to find a replacement for board chairman Mark Tucker, who will retire by the end of 2025 after eight years helping to steer Europe’s largest bank.

Police in Shanghai busted a gang making and selling fake Labubus this month, detaining eight people and 5,000 counterfeit toys worth $1.7 million, local state-owned media reported. Made by Beijing-based toymaker Pop Mart, Labubu dolls have become a must-have item internationally, adorning the handbags of celebrities such as Rihanna and Dua Lipa.The furry, fanged creatures, which typically sell for around $40, are released in limited quantities and have caused frenzies at stores around the world. Knock-offs — many of which are also made in China — have flooded online platforms, dubbed “Lafufus” by social media users.The Shanghai bust in early July uncovered 12-million-yuan ($1.7-million) worth of fake Pop Mart toys, state-run Shanghai Daily reported late Tuesday.Pop Mart notified police when a customer reported that one purchased online was in fact fake.This led to the discovery of an online store that sold fans, speakers and gaming consoles — but was also a front for selling the counterfeits. Police raided a warehouse, detaining eight people and the 5,000 toys, complete with forged trademarks and fake anti-counterfeit stickers, the report said. It is not the first time the fluffy monsters have been associated with crime. In Singapore, CCTV footage captured a family stealing Labubu dolls from a claw machine last year, according to online media outlet AsiaOne.And in June, burglars broke into a store in California and took several Labubu dolls along with electronics and other valuables, US news outlet ABC reported.

China said Wednesday that recently announced subsidies to support families with young children will provide a much-needed economic boost, as Beijing seeks to promote spending and avert a demographic crisis.Authorities in the world’s second-largest economy on Monday declared the new nationwide policy, which offers parents the equivalent of around $500 per child under the age of three per year.”The childcare subsidy system can directly increase people’s cash income,” Guo Yanhong, vice minister of China’s National Health Commission (NHC), said at a press conference in Beijing on Wednesday.The measure “will better protect and improve people’s livelihoods”, Guo said.”At the same time, it will help promote a virtuous cycle of improving people’s livelihoods and economic development, adding new impetus to the sustained and healthy development of the economy,” she added.Chinese leaders have in recent years struggled to breathe life into the economy, beset by a yearslong property crisis that has spooked would-be homebuyers and dissuaded many people from having children.Beijing has since late last year introduced a series of aggressive pro-consumption policy measures — including key rate cuts and cancellations of certain restrictions on homebuying — but results have been limited.The slump comes as worrying demographic trends have become more pronounced.China’s population declined by 1.39 million last year, and marriage rates now sit at record lows.At Wednesday’s press conference in Beijing, NHC official Wang Haidong acknowledged that the country has “gradually shifted from a phase of population growth to a phase of population decline”.”To adapt to this new demographic landscape, the country is accelerating the improvement of its fertility support policy system, continuously reducing burdens on families of childbirth, raising children and educating them,” said Wang.This, added Wang, would help in “promoting the construction of a fertility-friendly society”.Zichun Huang, China economist at Capital Economics, told AFP this week that the sum of $500 per child was too small to have a “near-term impact on the birth rate or consumption”, but the policy could lay the groundwork for further child subsidies in the future.A finance ministry official said 90 billion yuan ($12.5 billion) had been set aside as a preliminary budget for the new scheme this year.Also on Wednesday, China’s top leaders gathered for a meeting on the economy chaired by President Xi Jinping, state media reported.In a speech, Xi noted “numerous risks and challenges” facing the economy, calling for the government to “strengthen macroeconomic policies and intensify them at the appropriate time”, state news agency Xinhua reported.

Markets were mixed Wednesday as investors kept tabs on China-US developments after they agreed to further talks to extend their trade truce, while eyes were also on tech earnings and a key Federal Reserve meeting.After deals were reached with the European Union and Japan over the past week, focus has been on negotiations between Washington and Beijing to extend an agreement to lower eye-watering tariffs that threatened the world’s top economies.The two-day meeting in Stockholm ended without a resolution but with the US team voicing optimism they could announce a second 90-day truce.Neither side has made public any details, although US Trade Representative Jamieson Greer said President Donald Trump would have the “final call” on any extension.Treasury Secretary Scott Bessent called the tone of the talks “very constructive”.Chris Weston at Pepperstone said: “Progress on a further extension remains the well-subscribed base case, but Trump holds the final call on that, and we note there is still ample time until we reach the deadline of 12 August.”For now, the markets are unperturbed by what they hear and have a further impending 90-day extension fully priced.”The general feeling is that the moratorium will be extended but there remains some nervousness, with many other countries still to reach agreements ahead of Trump’s August 1 deadline.Among those countries still to reach a deal are Brazil, which faces 50 percent tariffs, India and South Korea.The president on Tuesday said New Delhi could face a 20-25 percent rate, 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.”Tokyo, Hong Kong, Singapore, Wellington, Jakarta and Manila were down while Shanghai, Sydney, Seoul, Wellington, Taipei, Mumbai and Bangkok rose.Paris rose as data showed French economic growth topped forecasts in the second quarter and accelerated from the first three months of the year. London and Frankfurt edged down.Major earnings releases from tech titans Meta and Microsoft are due Wednesday, with Amazon and Apple coming Thursday.”It’s been a solid US reporting season so far, but these mega-cap names need to run it hot and blow the lights out, given the bar to please has been sufficiently raised,” Pepperstone’s Weston said.As well as the results, focus will be on the firms’ forecasts in light of Trump’s tariffs and their colossal investments in artificial intelligence.The Fed is widely expected to stand pat on interest rates Wednesday, but investors will be looking for any hint of a cut in September after recent economic data indicated some softening in the labour market.Oil prices held Tuesday’s gains of more than three percent — their biggest in six weeks, according to Bloomberg News — after Trump reiterated his warning of fresh sanctions on Russia unless it reaches a truce deal with Ukraine.- Key figures at around 0810 GMT -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)London – FTSE 100: DOWN 0.4 percent at 9,096.01 Euro/dollar: UP at $1.1556 from $1.1554 on TuesdayPound/dollar: UP at $1.3364 from $1.3357Dollar/yen: DOWN at 148.01 yen from 148.50 yenEuro/pound: UP at 86.48 pence from 86.47 penceWest Texas Intermediate: UP 0.3 percent at $69.40 per barrelBrent North Sea Crude: UP 0.4 percent at $72.79 per barrelNew York – Dow: DOWN 0.5 percent at 44,632.99 (close)