China's Shanghai Composite index edges up by 0.12%
Underlying sentiment remained supported somewhat as the EU and the U.S. struck a last-minute trade agreement and reports suggested the U.S. and China are likely to extend their tariff truce for another 90 days.
The EU-U.S. agreement includes a 15 percent tariff on EU goods, down from the 30 percent originally proposed.
The EU has committed to purchasing $750 billion worth of U.S. energy and investing $600 billion more into the American economy as part of the agreement.
The dollar index held near a one-week high ahead of a busy week for markets, with key data releases, the Federal Reserve's interest-rate decision and earnings reports from major tech companies awaited.
Magnificent Seven members Apple Inc., Amazon.com Inc., Microsoft Corp. and Meta Platforms Inc. are all due to report their numbers this week.
Gold held steady near $3,340 per ounce in Asian trade while oil prices climbed on optimism that the U.S.-EU trade deal could boost economic activity and lift energy demand.
China's Shanghai Composite index edged up by 0.12 percent to 3,597.94 ahead of U.S.-China talks in Stockholm to resolve trade tensions and extend the truce before it expires on August 12.
Investors shrugged off data that showed China's industrial earnings fell for a second straight month in June.
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New Indian Express
17 minutes ago
- New Indian Express
Trump tariff a blow to gems, jewellery, handicraft
JAIPUR: The Trump administration's decision to impose a 25% tariff on select imports from India has sparked panic among exporters in Rajasthan, particularly those trading with the United States. With America accounting for over Rs 17,000 crore of Rajasthan's total exports worth Rs 85,000 crore, the move is expected to severely impact key sectors such as gems and jewellery, handicrafts, and textiles. The most significant impact will be likely on exports of handicrafts worth Rs 5,000 crore, gems and jewellery worth Rs 7,000-8,000 crore, and garments and textiles worth Rs 1,500 crore to the US. Until now, only textiles attracted a tariff of 5.5%. However, if a uniform 25% tariff is enforced across these categories, exporters fear losing a significant share in the American market. Gems, jewellery sector at risk Previously, this trade faced a modest 5.5% duty. Now, the 25% tariff set to come into effect from August 7 poses a serious threat. Speaking to this newspaper, Naveen Jain, Jeweller and proprietor of Lord Krishna International, said, 'Every year, Rajasthan exports gems and jewellery worth Rs 7,000–8,000 crore to the US. So far, the tariff was 5.5%. With the jump to 25% from August 7, it will be extremely challenging for Indian exporters to remain competitive.' Sanjay Kala, former president of the Jewellers Association and Managing Director of Kinu Baba Gems India Pvt Ltd, echoed the concerns. 'This 25% tariff by the US is a massive challenge for Rajasthan's gems-jewellery, handicrafts and textile sectors. Exports worth over Rs 17,000 crore will be directly affected. Our products will lose their competitive edge globally, leading to a fall in exports and risking the livelihoods of lakhs of artisans and entrepreneurs.' Kala further emphasised the need for immediate government intervention. 'This will have severe economic and social consequences. With such a steep duty in our biggest export market, losses are inevitable. The Centre must initiate strong diplomatic talks with the US and announce special relief schemes to support exporters, ensure continuity in production, and protect employment.' He added, 'We must also diversify our export strategy by tapping into other global markets. Our industry has overcome many challenges before, and with government support and collective resilience, we will navigate this as well.'
New Indian Express
17 minutes ago
- New Indian Express
Trump's claim on Russian crude rubbished
NEW DELHI: US President Donald Trump on Saturday said he had heard about India stopping purchasing Russian crude, adding it would be a good step, a claim the government denied. Trump made the remark after announcing 25% reciprocal tariff on Indian imports, along with additional penalties linked to Russian crude imports. 'I understand that India is no longer going to be buying oil from Russia. That's what I heard, I don't know if that's right or not. That is a good step. We will see what happens,' Trump said. The petroleum ministry, however, clarified that India has not stopped importing Russian crude. A ministry official said Indian oil marketing companies (OMCs) continue to buy Russian oil, with supply decisions based on factors such as price, crude grade, inventories, logistics, and other economic considerations. 'These are long-term oil contracts. It is not so simple to just stop buying overnight,' the official said. The official also emphasised that Indian OMCs do not import crude from Iran or Venezuela — both sanctioned by the US. Russian oil, however, is not sanctioned by the US or the EU. Instead, it is subject to the G7-EU price-cap mechanism, which aims to restrict Russia's revenue while ensuring global oil supplies continue. India has consistently complied with the US-recommended price cap of $60 per barrel on Russian oil. Recently, the EU proposed a lower price cap of $47.6 per barrel, to be enforced from September. The official said India's purchases remain legitimate and fully within international frameworks.
Mint
17 minutes ago
- Mint
Who's feeling the pain of Trump's tariffs?
In the bygone age that was 2024, America charged levies averaging just 2% on its imports of goods. In the new era of trade wars, it now has an 'effective' tariff of over 16%, the highest since the 1930s (see chart 1). (The Economist) Rates look set to go even higher. On July 31st President Donald Trump signed an executive order that significantly raises tariffs on most of America's trading partners, with the increases due to go into effect on August 7th. Duties on most products from the European Union and South Korea, which recently struck deals with America, will rise to 15%. India faces a tariff of 25%; South Africa, 30%; Canada, 35%. As we published this, Mr Trump seemed inclined to extend America's tariff truce with China. But that still leaves the world's second-largest economy facing levies of around 40% on sales to the world's largest. Who pays for these tariffs, in all their infinite variety? Most economists reckon that ordinary Americans will lose out, as prices in shops rise. Mr Trump and his coterie, by contrast, blithely insist that the rest of the world will shoulder the load by cutting their selling prices. So far, the evidence is giving the know-nothings a glimmer of hope. Mr Trump's critics in the economics profession have history and research on their side. Studies show that when a country imposes duties on its imports, its foreign suppliers often keep their prices roughly the same. The tariff is layered on top. So it was during the first Trump administration, which slapped tariffs on China and others. A study from 2019 found 'complete pass-through of the tariffs into domestic prices of imported goods'. Some foreign firms are taking a similar stance in response to Mr Trump's new levies. In April Ferrari added up to 10% to the price of its cars. Britain's Ineos said it would charge more for its Grenadier off-roader. Canon, a camera-maker, has warned dealers to brace for price increases. But the broader pattern is more benign. There is, for example, surprisingly little evidence so far of tariff 'pass-through' into inflation. In June America's 'core' consumer prices (ie, excluding food and energy) rose by 0.2% on the previous month, below the consensus estimate of 0.3%. Economists have found some evidence of tariff-induced price rises—in car parts, for instance—but they have had to look harder for it than they had expected. What explains these surprising results? American firms, not consumers, may be paying for the trade war by accepting lower profits, suggests research by Deutsche Bank. Some firms also boosted inventories before the tariffs were implemented, allowing them to avoid raising their prices for now. America's foreign suppliers may also be sharing more of the load than they did in Mr Trump's first term. Nintendo, a Japanese electronics firm, is keeping the American price of the Switch 2 games console at $449.99. Many Chinese manufacturers seem prepared to follow Nintendo and absorb duties: Fuling, a supplier of cutlery, says its clients expect it to shoulder 'part of the increased tariff costs'. TIRTIR, a South Korean beauty brand popular with American Gen Zers, has signalled that it can absorb most of the tariffs. Games Workshop, a British manufacturer of war games, also seems resigned to taking the hit, warning investors that tariffs could reduce annual profits by £12m ($16m). 'We found tentative evidence that Korean auto exporters are shouldering the cost of higher US tariffs, at least for now,' wrote Kim Jin-Wook of Citigroup, a bank, in a recent note. The Bank of Japan tracks the prices of the country's car exports to America. In yen terms, they have fallen by 26% in the past year. Some of that decline may reflect exchange-rate movements. An unchanged dollar price brings in fewer yen when the American currency is weak. But that only raises another question: why are Japan's carmakers not raising their dollar prices more vigorously in response? More comprehensive data point in a similar direction. The Economist assembled a series on export prices from a number of America's largest trading partners, including Canada, Germany and South Korea. In the past exporters in these countries have been perfectly willing to raise prices: during the inflationary surge of 2021-22, they increased them by more than 15% over a 12-month span (see chart 2). Yet in the past year the average local-currency price of their exports has fallen by 3.6%. Nothing of the sort happened during Mr Trump's first trade war. (The Economist) Some economists have noted a disconnect between what foreigners report and what American importers say they are paying. For instance, it is hard to find much evidence of plunging prices for Japanese car imports. Economists at Citi speculate that the time it takes to ship a foreign product to an American port may explain the puzzle. It 'implies a lag between falling export prices and when US import-price data would capture the decline', they say. Why might foreign suppliers be so forgiving? Some bosses worry more than before about the American consumer. With high inflation a recent memory, people already think that everything is too expensive. They have little tolerance for paying even higher prices. The opposite may be true of the foreign companies themselves. They are in a good financial position to withstand the tariffs. Aggregate margins of listed companies in emerging markets have become fatter over the past decade, increasing by over two percentage points. European firms have enjoyed similar gains. These companies can afford to take a small hit to profits, at least for now. Before long America's economy is likely to feel the pain of the trade war more acutely. Although some Chinese firms may have lowered their prices, these cuts are not nearly deep enough to offset the huge rise in tariffs they now face, points out Deutsche Bank's research. In addition, foreign companies that have borne the costs until now may not be able to bear them for ever—especially if tariff rates keep ratcheting up. The president loves defying his adversaries, in the economics profession and beyond. But he is always his own worst enemy. © 2025, The Economist Newspaper Limited. All rights reserved. From The Economist, published under licence. The original content can be found on Disclaimer: © 2025, The Economist Newspaper Limited. All rights reserved. From The Economist, published under licence. The original content can be found on
