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Russia on Friday said that it sees no immediate diplomatic way out of the war in Ukraine, hours after pummelling the war-torn country with its largest ever drone and missile barrage of the invasion.The hours-long bombardments sent Ukrainians scurrying for shelters across the country and came after a call between Trump and Russian President Vladimir Putin, which ended without a breakthrough.Trump also said he had made no progress in discussions with Putin on ending more than three years of bitter fighting since the Kremlin ordered its troops into neighbouring Ukraine.Earlier, AFP journalists in Kyiv heard drones buzzing over the capital and explosions ringing out throughout the night as Ukrainian air defence systems fended off the attack.Ukraine’s President Volodymyr Zelensky also spoke to Trump and said they agreed to work on bolstering the country’s defences against aerial bombardment.”We spoke about opportunities in air defence and agreed that we will work together to strengthen protection of our skies,” Zelensky said on social media after the call.Tymur, a Kyiv resident who said he had experienced previous Russian attacks, told AFP that the assault in the early hours of Friday felt different from others.”Nothing like this attack had ever happened before. There have never been so many explosions,” he said.The Kremlin said Friday it was “preferable” to achieve the goals of its invasion through political and diplomatic means.”But as long as that is not possible, we are continuing the special operation,” spokesman Dmitry Peskov said in a briefing, referring to Russia’s invasion.- ‘War and terror’ -Zelensky said air alerts began echoing out across the country as the Trump-Putin call was getting under way.”Yet again, Russia is showing it has no intention of ending the war and terror,” he said on social media.He urged the United States in particular to increase pressure on Moscow, which on Friday announced fresh territorial gains on the front line with the capture of a village in the Donetsk region.Poland said its embassy building in Kyiv had been damaged in the attack but that staff were unharmed.Germany’s foreign ministry meanwhile said that the timing of the attack showed that Moscow was continuing to “rely on brute force”. “Ukraine needs more to defend itself, not less,” the ministry said on social media.Berlin was exploring the possibility of purchasing more Patriot air defence systems from the United States for Ukraine, a German government spokesman told reporters.In Kyiv, one person was pulled from the rubble after the strikes, which also wounded at least 26 people, emergency services said.The barrage, according to the air force, comprised 539 drones and 11 missiles. A representative of Ukraine’s air force told Ukrainian media that the attack was the largest of the Russian invasion.- ‘Complete disregard’ -Overnight Russia attacks have escalated over recent weeks.An AFP tally found Moscow launched a record number of drones and missiles at Ukraine in June, when direct peace talks between Kyiv and Moscow appeared to stall.In Kyiv, AFP journalists saw dozens of residents of the capital taking shelter in a metro station.Yuliia Golovnina, who said she sheltered at the metro regularly, described the worry that came with hearing an explosion during an attack.”Will there be another one? Will something collapse on you?” the 47-year-old said.”In those seconds, you just hold your breath and wait to see what happens next,” she added.In Kyiv, concerns mounted over whether the US would continue delivering military aid, which is key to Ukraine’s ability to fend off the drone and missile barrages. The US announced this week it was reducing some of its aid deliveries.European Commission President Ursula von der Leyen said this was a clear signal that the 27-nation European Union needed to “step up”.Ukraine has also ramped up its retaliatory strikes in Russia, where a woman was killed by a Ukrainian drone attack overnight, the acting governor of the Rostov region said.Talks, spearheaded by the United States to secure a ceasefire, have stalled.Delegations from the two sides last met more than a month ago, when they agreed to exchange 1,000 prisoners each.Russia announced a fresh swap of prisoners of war with Ukraine on Friday as part of that agreement.

The BRICS nations will convene for a summit in Rio de Janeiro on Sunday and Monday, with members hoping to weigh in on global crises while tiptoeing around US President Donald Trump’s policies.The city, with beefed-up security, will play host to leaders and diplomats from 11 emerging economies including China, India, Russia, South Africa and host Brazil, which represent nearly half of the world’s population and 40 percent of its GDP. Brazil’s left-wing President Luiz Inacio Lula da Silva will have to navigate the absence of Chinese President Xi Jinping, who will miss the summit for the first time.Beijing will instead be represented by Premier Li Qiang.Russian President Vladimir Putin, who is facing a pending International Criminal Court (ICC) arrest warrant, will not travel to Brazil, but is set to participate via video link, according to the Kremlin.Iran’s President Masoud Pezeshkian, fresh from a 12-day conflict with Israel and a skirmish with the United States, will also be absent, as will his Egyptian counterpart Abdel Fattah al-Sisi, a Brazilian government source told AFP.Tensions in the Middle East, including Israel’s ongoing war in Gaza, will weigh on the summit, as well as the grim anticipation of tariffs threatened by Trump and due next week.Trump said that starting Friday, his administration would send countries letters stating their tariff levels, as negotiations to avoid higher US levies enter the final stretch.- ‘Cautious’ -“We’re anticipating a summit with a cautious tone: it will be difficult to mention the United States by name in the final declaration,” Marta Fernandez, director of the BRICS Policy Center at Rio’s Pontifical Catholic University, told AFP.China, for example, “is trying to adopt a restrained position on the Middle East,” Fernandez said, pointing out that Beijing was also in tricky tariff negotiations with Washington.”This doesn’t seem to be the right time to provoke further friction” between the world’s two leading economies, the researcher said.BRICS members did not issue a strong statement on the Iran-Israel conflict and subsequent US military strikes due to their “diverging” interests, according to Oliver Stuenkel, a professor of international relations at the Getulio Vargas Foundation.Brazil nevertheless hopes that countries can take a common stand at the summit, including on the most sensitive issues.”BRICS (countries), throughout their history, have managed to speak with one voice on major international issues, and there’s no reason why that shouldn’t be the case this time on the subject of the Middle East,” Brazil’s Foreign Minister Mauro Vieira told AFP.Lula on Friday again defended the idea of finding an alternative to the dollar for trade among BRICS nations.”I know it is complicated. There are political problems,” Lula said at a BRICS banking event. “But if we do not find a new formula, we are going to finish the 21st century the way we started the 20th.”- ‘Multilateralism’ -However, talks on this idea are likely dead in the water.For Fernandez, it is almost “forbidden” to mention the idea within the group since Trump threatened to impose 100 percent tariffs on countries that challenge the dollar’s international dominance.Brazil, which later this year will host the COP30 UN climate conference, also hopes to find unity on the fight against climate change.Artificial intelligence and global governance reform will also be on the menu.”The escalation of the Middle East conflict reinforces the urgency of the debate on the need to reform global governance and strengthen multilateralism,” said foreign minister Vieira.Since 2023, Saudi Arabia, Egypt, the United Arab Emirates, Ethiopia, Iran and Indonesia have joined BRICS, formed in 2009 as a counter-balance to leading Western economies.But, as Fernandez points out, this expansion “makes it all the more difficult to build a strong consensus.”

Russia on Friday said that it sees no immediate diplomatic way out of the war in Ukraine, hours after pummelling the war-torn country with its largest ever drone and missile barrage of the invasion.The hours-long bombardments sent Ukrainians scurrying for shelters across the country and came after a call between Trump and Russian President Vladimir Putin, which ended without a breakthrough.Trump also said he had made no progress in discussions with Putin on ending more than three years of bitter fighting since the Kremlin ordered its troops into neighbouring Ukraine.Earlier, AFP journalists in Kyiv heard drones buzzing over the capital and explosions ringing out throughout the night as Ukrainian air defence systems fended off the attack.Ukraine’s President Volodymyr Zelensky also spoke to Trump and said they agreed to work on bolstering the country’s defences against aerial bombardment.”We spoke about opportunities in air defence and agreed that we will work together to strengthen protection of our skies,” Zelensky said on social media after the call.Tymur, a Kyiv resident who said he had experienced previous Russian attacks, told AFP that the assault in the early hours of Friday felt different from others.”Nothing like this attack had ever happened before. There have never been so many explosions,” he said.The Kremlin said Friday it was “preferable” to achieve the goals of its invasion through political and diplomatic means.”But as long as that is not possible, we are continuing the special operation,” spokesman Dmitry Peskov said in a briefing, referring to Russia’s invasion.- ‘War and terror’ -Zelensky said air alerts began echoing out across the country as the Trump-Putin call was getting under way.”Yet again, Russia is showing it has no intention of ending the war and terror,” he said on social media.He urged the United States in particular to increase pressure on Moscow, which on Friday announced fresh territorial gains on the front line with the capture of a village in the Donetsk region.Poland said its embassy building in Kyiv had been damaged in the attack but that staff were unharmed.Germany’s foreign ministry meanwhile said that the timing of the attack showed that Moscow was continuing to “rely on brute force”. “Ukraine needs more to defend itself, not less,” the ministry said on social media.Berlin was exploring the possibility of purchasing more Patriot air defence systems from the United States for Ukraine, a German government spokesman told reporters.In Kyiv, one person was pulled from the rubble after the strikes, which also wounded at least 26 people, emergency services said.The barrage, according to the air force, comprised 539 drones and 11 missiles. A representative of Ukraine’s air force told Ukrainian media that the attack was the largest of the Russian invasion.- ‘Complete disregard’ -Overnight Russia attacks have escalated over recent weeks.An AFP tally found Moscow launched a record number of drones and missiles at Ukraine in June, when direct peace talks between Kyiv and Moscow appeared to stall.In Kyiv, AFP journalists saw dozens of residents of the capital taking shelter in a metro station.Yuliia Golovnina, who said she sheltered at the metro regularly, described the worry that came with hearing an explosion during an attack.”Will there be another one? Will something collapse on you?” the 47-year-old said.”In those seconds, you just hold your breath and wait to see what happens next,” she added.In Kyiv, concerns mounted over whether the US would continue delivering military aid, which is key to Ukraine’s ability to fend off the drone and missile barrages. The US announced this week it was reducing some of its aid deliveries.European Commission President Ursula von der Leyen said this was a clear signal that the 27-nation European Union needed to “step up”.Ukraine has also ramped up its retaliatory strikes in Russia, where a woman was killed by a Ukrainian drone attack overnight, the acting governor of the Rostov region said.Talks, spearheaded by the United States to secure a ceasefire, have stalled.Delegations from the two sides last met more than a month ago, when they agreed to exchange 1,000 prisoners each.Russia announced a fresh swap of prisoners of war with Ukraine on Friday as part of that agreement.

US President Donald Trump prepared Friday to sign his flagship tax and spending bill in a pomp-laden Independence Day ceremony featuring fireworks and a flypast by the type of stealth bomber that bombed Iran.Trump pushed Republican lawmakers to get his unpopular “One Big Beautiful Bill” through a reluctant Congress in time for him to sign it into law on the US national holiday — and they did so with a day to spare Thursday.Ever the showman, Trump will now meld a victory lap over the bill — which cements his radical second term agenda — with a grand party at the White House marking 249 years of independence from Britain.Trump announced a signing ceremony at the White House for 4:00 pm (2000 GMT)and said pilots who carried out the bombing on Iran were among those who had been invited.Looking jubilant at a rally Thursday in Iowa after the bill passed, Trump said “the age of America is upon us. This is a golden age.”The bill, which includes massive new funding for Trump’s migrant deportation drive, is the latest in a series of big political wins at home and abroad for the 79-year-old tycoon, and underscores his dominance over both the Republican Party and US politics at large, for now.His administration has meanwhile glossed over deep concerns from his own party and voters that it will balloon the national debt, while simultaneously gutting health and welfare support.White House economic adviser Kevin Hassett on Friday rebuffed the criticism, claiming the bill will produce “a real blowout for growth.””Nobody’s going to lose their health insurance because of this,” Hassett told Fox News, rejecting nonpartisan analyses estimating millions of poor Americans will lose health coverage on the government-funded Medicaid program.First Lady Melania Trump was also set to attend the Independence Day event.The president’s wife had told reporters on Thursday that a B-2 bomber, the type of aircraft that bombed Iran’s nuclear facilities on June 22, and fighter jets would carry out a flypast for the July 4 event.And Trump told the rally-goers in Iowa that the pilots and others who worked on the mission would join him for the festivities.”They’re going to be in Washington tomorrow, at the White House, we’re going to be celebrating,” he said.- Deep misgivings -Trump forced through the bill despite deep misgivings in the Republican Party — and the vocal opposition of his billionaire former ally, Elon Musk.It squeezed past a final vote in the House of Representatives 218-214 after Republican Speaker Mike Johnson worked through the night to corral the final group of dissenters.The sprawling mega-bill honors many of Trump’s campaign promises: boosting military spending, funding a mass migrant deportation drive and committing $4.5 trillion to extend his first-term tax relief.The legislation is the latest in a series of big wins for Trump, including a Supreme Court ruling last week that curbed lone federal judges from blocking his policies, and the US air strikes that led to a ceasefire between Israel and Iran.But it is expected to pile an extra $3.4 trillion over a decade onto the US deficit.At the same time it will shrink the federal food assistance program and force through the largest cuts to the Medicaid health insurance scheme for low-income Americans since its 1960s launch.Up to 17 million people could lose their insurance coverage under the bill, according to some estimates. Scores of rural hospitals are expected to close as a result.Democrats hope public opposition to the bill will help them flip the House in the 2026 midterm election, pointing to data showing that it represents a huge redistribution of wealth from the poorest Americans to the richest.

The Kremlin said on Friday that it sees no immediate diplomatic way out of the war in Ukraine, hours after launching its largest ever drone and missile barrage of the invasion.The hours-long bombardments across Ukraine came just after a telephone call between the US and Russian presidents ended without any breakthrough.AFP journalists in Kyiv heard drones buzzing over the capital and explosions ringing out throughout the night as Ukrainian air defence systems fended off the attack.”We are interested in achieving our goals in the course of the special military operation and it is preferable to do it by political and diplomatic means,” Kremlin spokesman Dmitry Peskov told reporters, referring to its invasion, launched in February 2022.”But as long as that is not possible, we are continuing the special operation,” he said in a briefing, including with AFP. US President Donald Trump had said he made no progress in discussions one day earlier with President Vladimir Putin on ending the war, while the Kremlin vowed to pursue its war aims.A senior Ukrainian official told AFP that Trump and Ukrainian leader Volodymyr Zelensky were planning to speak later on Friday.Tymur, a Kyiv resident who said he had experienced previous Russian attacks, told AFP that the assault in the early hours of Friday was different.”Nothing like this attack had ever happened before. There have never been so many explosions,” he said.- ‘War and terror’ -Zelensky said air alerts had begun echoing out across the country as the Trump-Putin call was getting underway.”Yet again, Russia is showing it has no intention of ending the war and terror,” Zelensky said on social media.”All of this is clear evidence that without truly large-scale pressure, Russia will not change its dumb, destructive behaviour.”He urged the United States in particular to increase pressure on Moscow, which on Friday announced fresh territorial gains on the front line with the capture of a village in the Donetsk region.Poland said its embassy building in Kyiv had been damaged in the attack but that staff were unharmed.Germany’s foreign ministry meanwhile said that the timing of the attack — just after the leaders’ call — showed that Moscow “continues to rely on brute force”. “Ukraine needs more to defend itself, not less,” the ministry said on social media.A government spokesman said Germany was exploring the possibility of purchasing more Patriot air defence systems from the United States for Ukraine.Zelensky said 23 people were wounded in the barrage, which the air force said comprised 539 drones and 11 missiles.A representative of Ukraine’s air force told Ukrainian media that the attack was the largest of the Russian invasion, launched in February 2022.- ‘Complete disregard’ -Overnight Russia attacks have escalated over recent weeks. An AFP tally found Moscow launched a record number of drones and missiles at Ukraine in June, when direct peace talks between Kyiv and Moscow appeared to stall.In Kyiv, AFP journalists saw dozens of residents of the capital taking shelter in a metro station. Yuliia Golovnina, who said she shelters at the metro regularly, described to AFP the worry that comes with hearing an explosion during an attack.”Will there be another one? Will something collapse on you?” the 47-year-old said.”So in those seconds, you just hold your breath and wait to see what happens next,” she added.In Kyiv, concerns mount over whether the US will continue delivering military aid, which is key to Ukraine’s ability to fend off the drone and missile barrages. The US announced this week it was reducing some of its aid deliveries.European Commission President Ursula von der Leyen said this was a clear signal that the 27-nation European Union needed to “step up”.Ukraine has also ramped up its retaliatory strikes in Russia, where a woman was killed when a Ukrainian drone crashed into an apartment building, the acting regional governor in Rostov said.Talks, spearheaded by the United States to secure a ceasefire, have stalled but Ukraine and Russia announced a fresh swap of prisoners of war with Ukraine.The two sides said it was part of agreements reached during talks in Istanbul last month.

Russia launched its largest-ever drone and missile attack on Ukraine overnight on Friday just hours after a telephone call between the US and Russian presidents ended without any breakthrough.AFP journalists in Kyiv heard drones buzzing over the capital and explosions ringing out throughout the night as Ukrainian air defence systems fended off the attack.US President Donald Trump said he had made no progress in discussions with Russian counterpart Vladimir Putin on ending the war.The Kremlin said Russia would pursue the aims of its invasion, now dragging through its fourth year.Tymur, a Kyiv resident who said he had experienced previous Russian attacks, told AFP that the assault in the early hours of Friday was different.”Nothing like this attack had ever happened before. There have never been so many explosions,” he said, adding: “Peaceful people live here. That’s all.”- ‘War and terror’ -Ukrainian President Volodymyr Zelensky said air alerts had begun echoing out across the country as reports of the presidents’ call emerged.”Yet again, Russia is showing it has no intention of ending the war and terror,” Zelensky said on social media.”All of this is clear evidence that without truly large-scale pressure, Russia will not change its dumb, destructive behaviour.”He urged the United States in particular to increase pressure on Moscow.A senior Ukrainian official told AFP that Trump and Zelensky were planning to speak by telephone later on Friday.Polish Foreign Minister Radoslaw Sikorski said an embassy building had been damaged in the attack but that staff were unharmed.”President Trump: Putin is mocking your peace efforts,” he added in the social media post.Germany’s foreign ministry meanwhile said that the timing of the attack, just after the call between Putin and Trump, showed that Moscow “continues to rely on brute force”. “Ukraine needs more to defend itself, not less,” the ministry said on social media.Zelensky said 23 people were wounded in the barrage, which the air force said comprised 539 drones and 11 missiles.A representative of Ukraine’s air force told Ukrainian media that the attack was the largest of the Russian invasion, launched in February 2022.- ‘Complete disregard’ -Overnight Russia attacks have escalated over recent weeks. An AFP tally found Moscow launched a record number of drones and missiles at Ukraine in June, when direct peace talks between Kyiv and Moscow appeared to stall.”Putin clearly shows his complete disregard for the United States and everyone who has called for an end to the war,” Ukrainian Foreign Minister Andriy Sybiga wrote on social media after the attack.In Kyiv, AFP journalists saw dozens of residents of the capital taking shelter in a metro station. Yuliia Golovnina, who said she shelters at the metro regularly, described to AFP the worry that comes with hearing an explosion during an attack.”Will there be another one? Will something collapse on you?” the 47-year-old said.”So in those seconds, you just hold your breath and wait to see what happens next,” she added.Russian attacks have escalated as concerns mount in Kyiv over whether the US will continue delivering military aid, which is key to Ukraine’s ability to fend off the drone and missile barrages. The US announced this week it was reducing some of its aid deliveries.European Commission President Ursula von der Leyen said this was a clear signal that the 27-nation European Union needed to “step up”.Trump’s view of the call with Putin was unusually bleak. After most of his previous five calls with Putin since returning to power in January he has given optimistic reports of progress towards a deal.But he has shown increasing frustration with Putin after an early pivot towards the Russian leader.Ukraine has also ramped up its drone strikes in Russia, where a woman was killed when a Ukrainian drone crashed into an apartment building, the acting regional governor in Rostov said.

US President Donald Trump boasted of a “phenomenal victory” to cheering supporters at a rally in Iowa on Thursday after Congress narrowly passed his signature tax and spending bill, cementing his radical second-term agenda.The jubilant president kicked off America’s year-long 250th birthday celebrations with a victory lap hailing the unpopular bill, which has caused deep concern within his own Republican Party — as well as, polls show, among many Americans.Many fear that it will balloon the national debt, gut health and welfare support as well as clean energy, and supercharge Trump’s migrant crackdown.”There could be no better birthday present for America than the phenomenal victory we achieved just hours ago,” Trump told supporters in the state capital, Des Moines. “Very simply, the one, big beautiful bill would deliver the strongest border on Earth, the strongest economy on Earth, the strongest military on Earth, and ensure the United States of America will remain the strongest country anywhere on this beautiful planet of ours.”The bill squeezed past a final vote earlier Thursday, 218-214, after a small group of Republican opponents in the House of Representatives finally fell in line, corralled by Speaker Mike Johnson.Trump said he would sign the bill into law on Friday, American Independence Day, adding that pilots who had carried out US strikes on Iran two weeks earlier would be in attendance. – Mass deportations, tax breaks -The legislation is the latest in a series of big wins for Trump, including a Supreme Court ruling last week that curbed lone federal judges from blocking his policies, and US air strikes that led to a ceasefire between Israel and Iran.His sprawling mega-bill narrowly passed the Senate on Tuesday and had to return to the lower chamber for its approval of the senators’ revisions.The package honors many of Trump’s campaign promises: boosting military spending, funding a mass migrant deportation drive and committing $4.5 trillion to extend his first-term tax relief.”Everything was an absolute disaster under the Biden-Harris radical regime, and we took the best effort that we could, in one big, beautiful bill, to fix as much of it as we could,” Johnson said.”And I am so grateful that we got that done.”But it is expected to pile an extra $3.4 trillion over a decade onto the country’s fast-growing deficits, while shrinking the federal food assistance program and forcing through the largest cuts to the Medicaid health insurance scheme for low-income Americans since its 1960s launch.Some estimates put the total number of recipients set to lose their insurance coverage under the bill at 17 million. Scores of rural hospitals are expected to close.While Republican moderates in the House fear the cuts will damage their prospects of reelection next year, fiscal hawks chafed over savings that they say fall far short of what was promised.Johnson had to negotiate tight margins, and could only lose a handful of lawmakers in the final vote, among more than two dozen who had earlier declared themselves open to rejecting the 869-page text.Trump spent weeks hitting the phones and hosting White House meetings to cajole lawmakers torn between angering welfare recipients at home and incurring the president’s wrath.Democrats hope public opposition to the bill will help them flip the House in the 2026 midterm election, pointing to data showing that it represents a huge redistribution of wealth from the poorest Americans to the richest.”This bill, this one big, ugly bill — this reckless Republican budget, this disgusting abomination — is not about improving the quality of life of the American people,” House Minority Leader Hakeem Jeffries said.  After the bill was passed, Trump’s predecessor, Joe Biden, said it was “not only reckless — it’s cruel.”Extra spending on the military and border security will be paid in part through ending clean energy and electric vehicle subsidies — a factor triggering a bitter public feud between Trump and former key advisor Elon Musk.

With sweeping tariffs on friend and foe, US President Donald Trump has roiled financial markets and sparked a surge in economic uncertainty — and tensions are mounting days before a fresh volley of higher duties are due to kick in.Here is a rundown of what Trump has implemented in his second presidency, with levies on dozens of economies set to bounce from 10 percent to a range between 11 percent and 50 percent on Wednesday.- Global tariffs -While Trump imposed a 10 percent tariff on most US trading partners in April, the rate is set to rise for dozens of economies including the European Union and Japan come Wednesday.To avoid higher levies, countries have been rushing to strike deals with Washington.So far, the UK and Vietnam have struck pacts with the United States, while China has managed to temporarily lower tit-for-tat duties.There are notable exceptions to the duty.Immediate US neighbors Canada and Mexico, which were separately targeted over illegal immigration and fentanyl, are not affected by the 10 percent global tariff.Also off the hook are copper, pharmaceuticals, semiconductors and lumber — although these are sectors that Trump is mulling levies on. Gold and silver, as well as energy commodities, are excluded too.- China focus -China has borne the brunt of Trump’s levies. The world’s two biggest economies engaged in an escalating tariffs war this year before a temporary pullback.Both sides imposed triple-digit tariffs on each other’s goods at one point, a level effectively described as a trade embargo.After high level talks, Washington agreed to lower its levies on Chinese goods to 30 percent and Beijing slashed its own to 10 percent.The US level is higher as it includes a 20 percent tariff imposed over China’s alleged role in the global fentanyl trade.- Autos, metals -Trump has also targeted individual business sectors in his second term.In March, he imposed a 25 percent levy on steel and aluminum imports and last month doubled them to 50 percent.He has also rolled out a 25 percent tariff on imported autos, although those imported under the US-Mexico-Canada Agreement (USMCA) can qualify for a lower levy.Trump’s auto tariffs impact vehicle parts too, while the president has issued rules to ensure automakers paying vehicle tariffs will not also be charged for certain other duties.- Canada, Mexico -Canadian and Mexican products were initially hard hit by 25 percent US tariffs, with a lower rate for Canadian energy.Trump targeted both neighbors saying they did not do enough on illegal immigration and the flow of illicit drugs across borders.But he eventually announced exemptions for goods entering his country under the USMCA, covering large swaths of products. Potash, used as fertilizer, got a lower rate as well.- Other threats -Beyond expansive tariffs on Chinese products, Trump ordered the closure of a duty-free exemption for low-value parcels from the country. This adds to the cost of importing items like clothing and small electronics.Trump has also opened the door for 25 percent tariffs on goods from countries importing Venezuelan oil. He has threatened similar “secondary tariffs” involving Russian oil.And he has ordered investigations into imports of copper, lumber, semiconductors, pharmaceuticals and critical minerals that could eventually bring new duties.- Legal challenges -Trump’s sweeping tariffs on countries have faced legal challenges. The US Court of International Trade ruled in May that Trump had overstepped his authority with across-the-board global levies.It blocked many of the duties from going into effect, prompting the Trump administration’s challenge, and a US federal appeals court has since allowed the duties to remain while it considers the case.

As a Wednesday deadline approaches for steeper US tariffs to hit dozens of economies ranging from the EU to India, trade negotiations with President Donald Trump’s administration are coming down to the wire.The levies taking effect July 9 were announced in April, with the White House citing a lack of “reciprocity” in trade relations. But they were swiftly halted, allowing room for talks.Days before their reimposition, where do things stand?- EU: ‘Ready’ for deal -The European Union said it is “ready for a deal” with Washington, with the bloc’s trade chief meeting his US counterparts Thursday.European Commission president Ursula von der Leyen said the EU was targeting an “agreement in principle” when it came to the July 9 cutoff.With no deal, the US tariff on EU goods doubles from the “baseline” of 10 percent to 20 percent — with Trump previously threatening a 50 percent level.- Vietnam: A pact with uncertainties -Washington and Hanoi unveiled a trade pact Wednesday with much fanfare and few details, but it allowed Vietnam to avoid Trump’s initial 46 percent tariff.Under the agreement, Vietnamese goods face a minimum 20 percent tariff while products made elsewhere face a 40 percent levy — a clause to restrict “transshipping” by Chinese groups.But there remain questions on how the higher levy would apply to products using foreign parts.There is also a risk that Beijing will adopt retaliatory measures, analysts warned.- Japan: Rice, autos at stake -Despite being a close US ally and major source of foreign investment, Japan might not escape Trump’s tariff hike.Tokyo’s trade envoy Ryosei Akazawa has made numerous trips to Washington through the end of June.But Trump recently criticized what he described as Japan’s reluctance to open up further to US rice and auto exports.”I’m not sure we’re going to make a deal,” Trump said, adding that the country could pay a tariff of “30 percent, 35 percent, or whatever the number is that we determine.”- India: A good position -Indian manufacturers and exporters want to believe they can avoid a 26 percent tariff.Negotiations between both countries have been going well for weeks, and Trump himself suggested at the end of June that a “very big” agreement was imminent.Ajay Sahai, director general of the Federation of Indian Export Organisations, said the feedback he received “suggests positive developments.” But he maintained that the situation was fluid. Finance Minister Nirmala Sitharaman has stressed that agriculture and dairy products remain “very big red lines.”- South Korea: Muted optimism -Seoul, which is already reeling from US tariffs on steel and autos, wants to avert a sweeping 25 percent levy on its other exports.Cooperation in shipbuilding could be a bargaining chip, but “at this stage, both sides still haven’t clearly defined what exactly they want,” said new President Lee Jae Myung on Thursday.”I can’t say with confidence that we’ll be able to wrap everything up by July 8,” he added.- Indonesia, Thailand, Taiwan in the wings -Other Asian economies including Indonesia, Thailand and Cambodia, which faces a 49 percent tariff, wait with bated breath.Indonesia has indicated willingness to boost energy, agriculture and merchandise imports from the United States. Bangladesh meanwhile is proposing to buy Boeing planes and step up imports of US agriculture products.Taiwan, for whom Washington is a vital security partner, faces a 32 percent duty without a pact.Although both sides have faced bumps along the way, Taiwanese Vice President Hsiao Bi-khim said “negotiators from both sides are working diligently” to find a path forward.- Switzerland: Hope for delay -Switzerland’s government said Washington has acknowledged it was acting in good faith, and assumes its tariff level will remain at 10 percent on July 9 while negotiations continue.But without a decision by the president as of the end of June, Switzerland did not rule out that levies could still rise to a promised 31 percent.burs-jug-bys/jgc

While the US stock market has fully recovered from a spring rout, the relentless drop in the dollar is prompting currency experts to warn of greater financial market turmoil ahead.The American currency is down more than 10 percent so far in 2025, a historic retreat that has overlapped with occasional spikes in long-term US Treasury yields. The anomalous dynamic suggests investors are rethinking US holdings, once considered safe havens, as they take stock of President Donald Trump’s unpredictable policy shifts.While the dollar’s status as the global reserve currency appears unshakeable in the near future, many currency experts expect the greenback to continue to weaken in the coming years, given expectations for slower growth after a long run of US out-performance.”It’s US exceptionalism basically falling by the wayside and the rest of the world playing catch-up,” said Erik Nelson, a macro strategist at Wells Fargo, who predicts the dollar will continue to depreciate.In April, global markets were shaken by “Sell America” gyrations in the stock, foreign exchange and US treasury markets, and analysts expect similar sentiment in the future.”I think the world is becoming a little bit less stable politically, which is generally kind of problematic for economic and financial market volatility,” Nelson said.”We are witnessing the end of a 14-year bull run of the US dollar,” said Joseph Brusuelas, chief economist at RSM US, a consultancy, who expects a “multi-year unwinding of the dollar.”Harvard Economist Kenneth Rogoff, author of the 2025 book “Our Dollar Your Problem,” said central banks in China and elsewhere were diversifying away from dollars even before 2025, but that Trump accelerated the trend.”I think we’ll see a period of a lot of financial volatility, largely centered around the chaos in the United States,” Rogoff told AFP, pointing to factors that include uncertainty about US central bank independence and the rise of populism.”We’ll probably have a more volatile period in financial markets over the next 10 years than we have in the preceding.”- Onshoring benefit -Both Nelson and Rogoff pointed out that the dollar at the start of 2025 was unusually lofty after surging in the weeks following Trump’s November 2024 victory. Economists have since rethought assumptions that the US would continue to outperform rival economies.According to the ICE US Dollar Index, a basket of seven currencies, the dollar fell 10.7 percent through the end of June, the biggest drop in the first six months of a year since 1973.On Thursday, the dollar index rose modestly after solid US jobs data dimmed odds for imminent Federal Reserve interest rate cuts.With a gain of more than 13 percent against the dollar, the euro has been among the biggest winners following Germany’s big fiscal investments in defense, even as the European Central Bank continued to cut interest rates.Besides a weaker US economic outlook, the shift in the dollar reflects expectations for looser US monetary policy. Trump has taken relentless aim at Jerome Powell, referring to the Federal Reserve Chair as “a stupid person” while calling for interset rates “at least two to three points lower” — a huge shift in monetary policy.While Treasury Secretary Scott Bessent and other top officials have rejected suggestions they prefer a cheap dollar, a less expensive currency is beneficial to US exporters and consistent with the administration’s stated goal of beefing up manufacturing.”Lower interest rates and a weaker dollar would enable the US to strengthen its economic self-sufficiency and increase onshoring,” said Jason Schenker of Prestige Economics, who argues that the moves align with a muscular national security posture towards China.Market watchers have come to expect Trump to modulate his actions in response to big negative market swings. On April 9, Trump backtracked on many of the most onerous tariffs from his “Liberation Day” announcement a week earlier after a spike in Treasury bond yields hammered stocks. Later that month, he said he has “no intention” of firing Powell after earlier comments set markets ablaze.But equity markets so far appear unfazed by dollar weakness, with both the S&P 500 and Nasdaq ending Thursday’s session at records.”At some point it’s going to get investors’ attention,” Cresset Capital Management’s Jack Ablin said of the weak dollar.”It signals foreign investors are less inclined to own US assets.”