Oil falls as Trump's expanded tariffs cloud demand outlook
dropped on Thursday as the latest tariff announcements by U.S. President Donald Trump were perceived by market participants to threaten
global economic growth
and demand for the resource.
Brent crude futures
were down 22 cents, or 0.31%, at $69.97 a barrel by 0052 GMT. U.S. West Texas Intermediate crude lost 27 cents, or 0.39%, to $68.11 a barrel.
On Wednesday, Trump threatened Brazil, Latin America's largest economy, with a punitive 50% tariff on exports to the U.S., after a public spat with his Brazilian counterpart Luiz Inacio Lula da Silva.
Earlier, Trump announced plans about tariffs on copper, semiconductors and pharmaceuticals and his administration sent tariff letters to the Philippines, Iraq and others, adding to over a dozen of letters issued earlier in the week including for powerhouse U.S. suppliers South Korea and Japan.
As policymakers remain worried about the inflationary pressures from Trump's tariffs, only "a couple" of officials at the Federal Reserve's June 17-18 meeting said they felt
interest rates
could be reduced as soon as this month, the minutes released on Wednesday showed.
Live Events
Higher interest rates make borrowings more expensive and reduce demand for oil.
Providing some support to prices,
U.S. crude stocks
rose while gasoline and distillate inventories fell last week, the
Energy Information Administration
said on Wednesday.
Gasoline demand
rose 6% to 9.2 million barrels per day last week, the EIA said.
Global daily flights were averaging 107,600 in the first eight days of July, its all-time high, with flights in China reaching a five-month peak with port and freight activities indicating 'sustained expansion' in trade activities from last year, J.P. Morgan said in a client note.
"Year to date,
global oil demand
growth is averaging 0.97 million barrels per day, in line with our forecast of 1 million barrels per day," the note said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
43 minutes ago
- Indian Express
1 in 3 US smartphone imports now made in India, China's lead shrinks
India's share in US smartphone imports surged to nearly 36 per cent in the first five months of 2025, from about 11 per cent in 2024. China, which continues to dominate the product category, saw its share drop from 82 per cent to 49 per cent over the same period. India's growing share — now 1 in 3, driven largely by Apple iPhones — comes amid ongoing trade talks with the US. While smartphones are India's top export to the US by value, President Donald Trump has threatened a 25 per cent tariff on Indian-made iPhones. US smartphone imports from India jumped by over three times year-on-year to 21.3 million units between January and May this year, according to data from the US International Trade Commis-sion (USITC). In value terms (CIF), imports of Indian-made smartphones increased 182 per cent y-o-y to $9.35 billion, already higher than around $7 billion in the whole of 2024. In May, Apple CEO Tim Cook had said the company expects most iPhones sold in the US in the April-June quarter to have India as their country of origin. Roughly 20 per cent of Apple's global iPhone production capacity is now based in India. Meanwhile, China exported 29.4 million smartphones to the US between January and May — a 27 per cent y-o-y drop — valued at around $10 billion. China (49 per cent) and India (36 per cent) were followed by Vietnam with 8.3 million units exported, accounting for a share of 14 per cent. Apple doubled down on production in India in 2020, after the government announced its flagship Production Linked Incentive (PLI) scheme to support smartphone manufacturing in the country. Through its contract manufacturers, the company has been the biggest beneficiary of the scheme, which has helped it move some production away from China. While it started by making some of its older iPhones in India, Apple today produces all models, including the higher-end Pro range, in the country. Apple's pivot to India from China for US-bound exports has drawn criticism from Trump, who, in May, said he's told Apple's chief executive that he does not want the company to expand its manufacturing operations in India. 'I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a tariff of at least 25% must be paid by Apple to the US. Thank you for your attention to this matter,' Trump had said in a social media post. However, Apple is unlikely to overhaul its India expansion plans in the near-term. In May, its contract manufacturer Foxconn informed the London Stock Exchange of a $1.49 billion investment in one of its India units, Yuzhan Technologies (India) Pvt Ltd. The new plant is expected to come up in Tamil Nadu, where Foxconn already has a major iPhone production base. There are some challenges though. Of Apple's latest official supplier list, in 2023, as many as 157 of the company's various vendors and suppliers manufactured in mainland China, up from 151 the previous year. The number of Indian suppliers was 14. People in the know say that number has now risen to 64, marking a slow but steady shift of Apple's supplier base to India. In a Lok Sabha reply on Wednesday, Union MoS for Electronics and Information Technology Jitin Prasada said mobile manufacturing units in India have increased to 300 in 2024-25, from just 2 in 2014-15. At the same time, production of mobile phones increased 28 times to Rs 5.45 lakh crore, while exports increased 127 times to Rs 2 lakh crore. 'Total FDI in field of electronics manufacturing in last 5 years (i.e. since FY 2020-21) is US$ 4,071 mn, cumulative FDI of US$ 2,802 mn has been contributed by MeitY PLI beneficiaries,' Prasada said. Aggam Walia is a Correspondent at The Indian Express, reporting on power, renewables, and mining. His work unpacks intricate ties between corporations, government, and policy, often relying on documents sourced via the RTI Act. Off the beat, he enjoys running through Delhi's parks and forests, walking to places, and cooking pasta. ... Read More Soumyarendra Barik is Special Correspondent with The Indian Express and reports on the intersection of technology, policy and society. With over five years of newsroom experience, he has reported on issues of gig workers' rights, privacy, India's prevalent digital divide and a range of other policy interventions that impact big tech companies. He once also tailed a food delivery worker for over 12 hours to quantify the amount of money they make, and the pain they go through while doing so. In his free time, he likes to nerd about watches, Formula 1 and football. ... Read More
Indian Express
43 minutes ago
- Indian Express
RBI Governor Sanjay Malhotra: US Fed chair doing good job, central bank independence important
AMID THE ongoing feud between US President Donald Trump and Federal Reserve Chairman Jerome Powell, Reserve Bank of India Governor Sanjay Malhotra on Friday appreciated the Fed chair for doing a 'good job'. 'I don't think he needs advice. I think he is doing a very good job. Maintaining the independence of the central bank is very important. I think he has done a commendable job,' Malhotra said on Friday, when asked what advice he would give Powell to deal with Trump. He was responding to a question asked by Anant Goenka, Executive Director, The Indian Express Group, at the Financial Express Modern BFSI Summit in Mumbai. 'I may mention that we were there in the IFMC about a couple of months ago in Washington, where the finance ministers and central bankers of the top 30-40 countries were present. And every governor and finance minister gets a chance to speak on the economy and what's required to be done. There were some 40-50 speakers. Jerome Powell was also there and he spoke about what he was doing about central bank independence, and out of everyone, he was the only one who got a roaring applause. No one else,' Malhotra recalled. Since taking over as the US President in January this year, Trump has targeted Powell repeatedly. He has criticised Powell for not cutting interest rates, and called him a 'numbskull'. Last month, Trump said he was considering the possibility of replacing Powell and had three-four potential candidates. On Thursday, Trump and Powell sparred over the renovation costs of the Federal Reserve's headquarters in Washington. Earlier in the day, at a fireside chat with Shyamal Majumdar, Editor, Financial Express, the RBI Governor said the war against inflation is an ongoing process and the central bank would continue to keep an eye on it. He said the RBI was soon going to come out with a discussion paper on flexible inflation targeting (FIT) framework, which is due for a review. Headline inflation, as measured by y-o-y changes in the all-India consumer price index (CPI), declined to 2.1 per cent in June 2025, the lowest since January 2019, compared to 2.8 per cent in May. Retail inflation remained below the 4 per cent target for the fifth consecutive month in June. 'It's (inflation below 4 per cent) not a permanent victory. It is a victory, it's a battle won, but the war against inflation continues. We never let our eyes off inflation. Our primary objective is to maintain price stability,' Malhotra said when asked about his major worry now that the RBI seems to have won the war against inflation. Malhotra said the RBI's other objective was growth, which is also a prerequisite for a stable economy. 'History tells us (that in) various economies, wherever there has been very high volatility and inflation, growth has suffered,' he said. To a question on what the RBI's Monetary Policy Committee (MPC) philosophy would be when it is certain that inflation is going to be below 3.7 per cent in FY2026, he said the rate-setting panel would look at the data that comes in and take a final call. 'Even though 3.7 per cent is the average (inflation) for this year (FY26), the Q4 (estimate of 4.4 per cent) may be revised downwards, given the fact that the numbers that are coming in are lower than what we had projected even for Q1. We will see how it (Q4 inflation print) gets revised. So, monetary policy, being data-driven, will be guided by the revised numbers, if any,' he said. He reiterated that the change in monetary policy stance to 'neutral' in the June policy gives the MPC the flexibility to move interest rates in either direction, or even to go for a pause. His statement comes a few days ahead of the next monetary policy meeting, scheduled on August 4-6. Asked if a rate cut in the near future was not ruled out, Malhotra said it was for the monetary policy committee to decide. He, however, highlighted that a neutral stance does not mean a reversal of the easing policy, a rate cut can still be there. 'We have the flexibility to move up, down, or pause. Yes, it does mean that the bar for further easing is higher than it would have been if it was accommodative, which was a clear signal for further easing,' he said. Malhotra described the flexible inflation targeting (FIT) framework as a success, because it has resulted in a moderation in inflation to an average of 4.9 per cent since the regime's introduction in 2016. Under this framework, the RBI has been mandated by the government to maintain CPI at 4 per cent with a band of +/-2 per cent. He said the framework is due for a review, and the RBI will soon be coming out with a discussion paper on it. The government, in consultation with the RBI, revisits the inflation target under the FIT regime every five years. 'We will invite suggestions from all the stakeholders, and will give our comments to the government. The final call has to be taken by the government as to what the particular target or the benchmark should be for the flexible inflation targeting,' he said. On tepid growth in bank credit and private investments, Malhotra said the monetary transmission is happening and this will support growth in the near term. The MPC has cut the repo rate — the key policy rate — by 100 bps between February-June 2025. The repo rate was reduced by 25 bps each in February and April monetary policy meetings, and by 50 bps in the June policy. 'Within two months of our 50 basis point cut (25 bps each in February and April policy), the whole of the monetary policy transmission has happened. So all these things will actually help further in improving credit and improving growth,' he said. Like for corporates, Malhotra also expressed reservations about allowing non-banking financial companies into the banking space. He said the eligibility criteria for a company or for an NBFC is not very different. 'If a large industrial house is doing financial activities and real economy activities within the same group, there is an inherent conflict of interest, with the group actually dealing with the money of the depositors. So those concerns are valid, and they continue to remain,' he said, when asked if the RBI was open to allowing NBFCs to enter the banking space. He noted that there was no proposal at present to allow corporates, whether through NBFCs or as an individual company, to get a banking licence. Malhotra welcomed the India-United Kingdom (UK) bilateral free trade agreement (FTA), saying the deal would give a boost to the domestic manufacturing and services sectors. 'Hopefully it (India-UK free trade agreement) should help us. I think that is the way going forward now, because unfortunately multilateralism seems to have taken a back seat. So I think in that sense, it's good that we already have one FTA in place,' Malhotra said. He also emphasised the need for more such deals and said the agreement with the US is in advanced stages.
India Today
2 hours ago
- India Today
Trump arrives in Scotland for golf and bilateral talks ahead of EU trade deal
US President Donald Trump, dogged by questions about his ties to disgraced financier and sex offender Jeffrey Epstein, arrived in Scotland on Friday for some golf and bilateral talks that could yield a trade deal with the European told reporters upon his arrival that he will visit his two golf properties in Scotland and meet with British Prime Minister Keir Starmer and European Commission President Ursula von der Leyen, whom he called a "highly respected woman."advertisementAs hundreds of onlookers cheered his arrival, Trump repeated his earlier comment about a 50-50 chance of securing a deal with the EU, adding it would be his administration's biggest trade agreement thus far, if it came together. However, he said there were still "sticking points" with Brussels on "maybe 20 different things."Trump said his meeting with Starmer would be more of a celebration of the trade deal already reached than continued work on it, adding, "It's a great deal for both."Before he left Washington, Trump said his administration was working hard on a possible trade deal with the EU, and Brussels was keen to make a deal. Von der Leyen said later she would meet Trump in Scotland on diplomats say a deal could result in a 15% tariff on EU goods, mirroring a framework accord with Japan reached this week and half of the 30% Trump is threatening to impose by August has sought to reorder the global economy after imposing a 10% tariff on nearly all trading partners in April and threatening sharply higher rates for many countries to kick in a week from now. Trump says the moves will reduce the US trade deficit and bring in extra revenue, but economists warn the new trade policies could drive up inflation.'DON'T TALK ABOUT TRUMP'Trump, facing the biggest domestic political crisis of his second term, expressed frustration about ongoing questions about his administration's handling of investigative files related to Epstein's criminal charges and his 2019 death in prison."You make it a very big thing over something that's not a big thing," Trump told reporters in Scotland, urging them to focus on other prominent Americans with ties to Epstein, including former President Bill Clinton."Talk about Clinton. Talk about the former president of Harvard. Talk about all of his friends. Talk about the hedge fund guys that were with him all the time. Don't talk about Trump," he said. "What you should be talking about is the fact that we have the greatest six months in the history of a presidency."The Epstein issue has caused a rare breach with some of Trump's most loyal Make America Great Again supporters, and majorities of Americans and Trump's Republicans say they believe the government is hiding details on the case, according to Reuters/Ipsos House officials are hoping the controversy dies down while Trump is abroad, two people familiar with the matter TIESTrump will stay at his Turnberry property on Scotland's west coast this weekend, before traveling on Monday to a golf property in Aberdeen, where he will open a second 18-hole course named in honor of his mother, Mary Anne MacLeod. MacLeod was born and raised on a Scottish island before emigrating to the USAs he left the White House, Trump said he looked forward to meeting both Starmer and Scottish leader John Swinney, who had publicly backed Democratic candidate Kamala Harris in the 2024 US presidential trip gives Trump and Starmer a chance to deepen their already warm ties, with key issues on the agenda to include ending Russia's war in Ukraine, British and U.S. sources deteriorating situation in Gaza is also likely to arise. Starmer on Thursday said he would hold an emergency call with France and Germany over what he called the "unspeakable and indefensible" suffering and starvation being reported there, and called on Israel to allow aid to enter the Palestinian health authorities say more than 100 people have died from starvation, most in recent weeks. Human rights groups have said mass starvation is spreading even as tons of food and other supplies sit untouched just outside the being elected last year, Starmer has prioritized good relations with Trump, stressing the importance of Britain's defense and security alliance with the US, while working to clinch the first tariff-reduction deal with the US in framework agreement reaffirmed quotas and tariff rates on British automobiles and eliminated tariffs on the UK's aerospace sector, but left steel tariffs in is expected to press for lower steel tariffs, but sources close to the matter said it was unclear if any breakthrough was possible during Trump's has described Scotland as a "very special place" and made a similar trip there in 2016 during his earlier run for the presidency, but he will not necessarily get a warm 70% of Scots have an unfavorable opinion of Trump, while 18% have a favorable opinion, an Ipsos poll in March police are girding for protests on Saturday in both Aberdeen and in Edinburgh, the country's will return to Britain from September 17-19 for a state visit hosted by King Charles. It will make Trump the first world leader in modern times to undertake two state visits to Britain. The late Queen Elizabeth hosted him at Buckingham Palace for a three-day state visit in June 2019.- EndsTune InMust Watch
