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India Today
an hour ago
- Business
- India Today
Cancel all deals: Trump claims he stopped India-Pak conflict with trade threat
US President Donald Trump has once again claimed that he prevented a potential nuclear war between India and Pakistan by threatening to cancel all trade agreements with both to reporters at the White House, Trump said, 'I asked Howard Lutnick to call and tell India & Pakistan that Trump wants to cancel all trade deals with both countries, if they continue the war. Both nations called back & then stopped fighting.'advertisementReferring to the conflict that reportedly ended on May 10 after four days of drone and missile strikes across the India-Pakistan border, Trump took credit for deescalating the situation. 'We did some great work. India and Pakistan. That was going to be maybe nuclear. We did that. We did a lot of work. I don't know if there's ever been a president that's done much more,' he said. Trump elaborated further, saying he directed senior officials to cut ties unless both sides stopped the fighting. 'Serbia, Kosovo is going to go at it, going to be a big war. I said, 'you go at it, there's no trade with the United States. That's what happened with India and Pakistan. I was negotiating with both of them and I said to Treasury Secretary Scott Bessent, I said to Commerce Secretary Howard Lutnick, cancel all deals with India and Pakistan. They're not trading with us because they're in a war,' he to Trump, the message prompted both nations to back down. 'They called back. 'What do we do?' I said, 'Look, you want to have trade with the United States. It's great, but you want to go and start using nuclear weapons on each other. We're not going to allow that.' And they both agreed, both have great leaders. They both agreed not to do it. So we did a lot,' Trump also expressed optimism about future trade ties with India, suggesting that new negotiations could open the Indian market further for US companies. 'Some of the bigger countries, India, I think we're going to reach a deal where we have the right to go in and trade. Right now it's restricted. You can't walk in there. You can't even think about it. We're looking to get a full trade barrier dropping, which is unthinkable and I'm not sure that that's going to happen, but as of this moment, we've agreed to go into India and trade,' he added, 'We're going to be trading in China. That's going to come a little bit down the road, but we're going to be trading in China. We have a lot of great things going and we're getting along with countries, but some will be disappointed. Because they're going to have to pay tariffs, and we've taken in already hundreds of billions of dollars in tariffs, no inflation.'advertisementWhile Trump has repeatedly claimed he 'helped settle' the tensions between India and Pakistan, India has maintained that the ceasefire understanding was the outcome of direct talks between the Directors General of Military Operations (DGMOs) of both a recent 35-minute phone conversation with Trump, Prime Minister Narendra Modi reportedly said that India does not and will "never accept" any form of mediation. He clarified that the discussions to end hostilities were initiated at Pakistan's request and conducted directly between the two militaries.- EndsMust Watch IN THIS STORY#Donald Trump#Pakistan
Straits Times
2 hours ago
- Business
- Straits Times
‘A stubborn mule': Trump encourages Powell to resign in latest attack on the Fed chair
US President Donald Trump continued his assault on the chair of the Federal Reserve on June 27, saying he would like Jerome Powell to resign. The president, who has berated Mr Powell for weeks, called the chair a 'stubborn mule' who has 'Trump derangement syndrome' for his refusal to immediately lower borrowing costs. 'I'd love for him to resign if he wanted to,' the president told reporters in the Oval Office. Such attacks have become a mainstay in Mr Trump's second term in the White House. The president, who elevated Mr Powell to Fed chair during his first term, has spent the past few weeks castigating him for not moving quickly enough to cut interest rates. Mr Trump has long been a fan of low interest rates, which make it cheaper for businesses and consumers to borrow and in turn fuel growth. He cajoled Mr Powell during his first term when he thought the Fed chair was taking too long to lower rates. But Mr Trump's interest in lower borrowing costs has taken on more significance this time around. He is pushing Republican lawmakers to approve an expensive tax cut package that would require the United States to sell large sums of debt to finance it. That goal has become harder – and more expensive – given that interest rates remain elevated in a range of 4.25 per cent to 4.5 per cent. Mr Trump has argued that the government would save 'billions' if the Fed lowered interest rates, calling for as much as an immediate 2.5-percentage-point decline. 'We have a guy that's just a stubborn mule and a stupid person that is making a big mistake,' the president said on June 27. The country is paying more to service its debts 'because we have a guy who's suffering from Trump derangement syndrome, if you want to know the truth,' he added. 'He's not good for our country.' The Fed has stuck to a 'wait and see' approach for months, with officials arguing that they can be patient before acting on further rate cuts because the labour market is still solid and inflation is at risk of flaring up again because of Mr Trump's policies. The central bank last lowered borrowing costs in December, after a series of reductions in the latter half of last year. Divisions between Fed officials have started to emerge however, with two Trump appointees recently making the case for interest rate cuts as early as July. Ms Michelle Bowman was recently elevated from her role as governor to head of regulatory issues at the central bank, while another governor, Mr Christopher Waller, is seen as a potential pick to be the next chair. Mr Trump recently said that he was choosing among three or four people to replace Mr Powell, whose term ends in May, and that an announcement would be coming soon. Other contenders include Mr Kevin Warsh, a former Fed governor who was almost picked to be chair during Mr Trump's first term; Treasury Secretary Scott Bessent; and Mr Kevin Hassett, a top economic adviser to the president. Asked on June 27 about his interest in the job, Mr Bessent said he would 'do what the president wants, but I think I have the best job in Washington'. The Fed is supposed to operate independently of the White House in order to ensure that officials can make tough choices on interest rates to keep inflation stable and the labor market healthy. Speaking with lawmakers this week, Mr Powell repeatedly stressed that politics did not factor into the Fed's thinking on interest rates. Those decisions are guided by the economic data, he said. Mr Trump has long sought to have a greater say over the direction of interest rates and has repeatedly toyed with removing Mr Powell as chair before his term expires. The Supreme Court recently signalled that the president was not authorised to do that, however. Mr Powell's term as a governor does not expire until 2032, meaning he could technically stay on even after stepping down as chair. Mr Bessent acknowledged that on June 28, saying: 'Chair Powell doesn't have to leave.' The next vacancy is set to open up at the end of January, when Ms Adriana Kugler's term as governor ends. If the administration chose to fill that spot with the next designated chair, Mr Bessent told CNBC, the nomination process could be completed in October or November. That timing is more in line with how it has been done historically. Selecting a replacement as early as the summer would risk muddying the Fed's communications and disrupting financial markets. Mr Trump said on June 27 that he expected whomever he picked to lower interest rates. 'If I think somebody's going to keep the rates where they are, or whatever, I'm not going to put them in,' he said. NYTIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
The Advertiser
3 hours ago
- Business
- The Advertiser
Trump cuts off trade talks with Canada over digital tax
US President Donald Trump has abruptly cut off trade talks with Canada over its tax targeting US technology firms, calling it a "blatant attack" and saying that he would set a new tariff rate on Canadian goods within the next week. The move plunges US relations with its second-largest trading partner back into chaos after a period of relative calm. It also came just hours after Treasury Secretary Scott Bessent struck an upbeat tone on trade, touting progress had been made with China on reviving the flow of critical minerals for the US manufacturing sector and in other key tariff negotiations. The often-chaotic rollout of Trump's import levies since his return to office this year have frequently whipsawed financial markets, and have begun to weigh on consumer spending, the bedrock of the US economy. US stocks were briefly batted lower by his broadside against Canada but managed to close out the week at record highs for the S&P 500 and Nasdaq. Trump's action comes ahead of Canada's plans to begin collecting on Monday a longstanding digital services tax on US technology firms including Amazon, Meta, Alphabet's Google and Apple among others. The tax is 3.0 per cent of the digital services revenue a firm takes in from Canadian users above $US20 million ($A31 million) in a calendar year, and payments will be retroactive to 2022. Trump, in a post on his Truth Social media platform, called the tax "a direct and blatant attack on our country" and said Canada was a "very difficult country to TRADE with". "Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump said. "We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period." Canada is the second-largest US trading partner after Mexico, buying $US349.4 billion of US goods last year and exporting $US412.7 billion to the US, according to US Census Bureau data. Canadian Prime Minister Mark Carney had said on June 16 he and Trump agreed to try to wrap up a new economic and security deal within 30 days. "The Canadian government will continue to engage in these complex negotiations with the United States in the best interests of Canadian workers and businesses," Carney's office said in a statement. Earlier on Friday, Bessent said the Trump administration's various trade deals with other countries could be done by the September 1 Labor Day holiday, citing talks with 18 top trade partners and another revision to a deal with China to reopen the flow of rare earth minerals and magnets. The United States sent a new proposal to the European Union on Thursday and India sent a delegation to Washington DC for more talks. "So we have countries approaching us with very good deals," Bessent said on Fox Business Network. "We have 18 important trading partners. ... If we can ink 10 or 12 of the important 18, there are another important 20 relationships, then I think we could have trade wrapped up by Labor Day," Bessent said. He did not mention any changes to a July 9 deadline for countries to reach deals with the United States or see tariffs spike higher but has previously said that countries negotiating in good faith could get deals. But Trump told reporters at the White House that he could extend the tariff deadline or "make it shorter," adding that within the next week and a half, he would notify countries of their tariff rates. "I'd like to just send letters out to everybody: Congratulations. You're paying 25 per cent" tariffs, Trump said in an apparent joke. Bessent said the United States and China had resolved issues surrounding shipments of Chinese rare earth minerals and magnets to the US, further modifying a deal reached in May in Geneva. China's commerce ministry said on Friday the two countries have confirmed details on the framework of implementing the Geneva trade talks consensus. It said China will approve export applications of controlled items in accordance with the law. It did not mention rare earths. US President Donald Trump has abruptly cut off trade talks with Canada over its tax targeting US technology firms, calling it a "blatant attack" and saying that he would set a new tariff rate on Canadian goods within the next week. The move plunges US relations with its second-largest trading partner back into chaos after a period of relative calm. It also came just hours after Treasury Secretary Scott Bessent struck an upbeat tone on trade, touting progress had been made with China on reviving the flow of critical minerals for the US manufacturing sector and in other key tariff negotiations. The often-chaotic rollout of Trump's import levies since his return to office this year have frequently whipsawed financial markets, and have begun to weigh on consumer spending, the bedrock of the US economy. US stocks were briefly batted lower by his broadside against Canada but managed to close out the week at record highs for the S&P 500 and Nasdaq. Trump's action comes ahead of Canada's plans to begin collecting on Monday a longstanding digital services tax on US technology firms including Amazon, Meta, Alphabet's Google and Apple among others. The tax is 3.0 per cent of the digital services revenue a firm takes in from Canadian users above $US20 million ($A31 million) in a calendar year, and payments will be retroactive to 2022. Trump, in a post on his Truth Social media platform, called the tax "a direct and blatant attack on our country" and said Canada was a "very difficult country to TRADE with". "Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump said. "We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period." Canada is the second-largest US trading partner after Mexico, buying $US349.4 billion of US goods last year and exporting $US412.7 billion to the US, according to US Census Bureau data. Canadian Prime Minister Mark Carney had said on June 16 he and Trump agreed to try to wrap up a new economic and security deal within 30 days. "The Canadian government will continue to engage in these complex negotiations with the United States in the best interests of Canadian workers and businesses," Carney's office said in a statement. Earlier on Friday, Bessent said the Trump administration's various trade deals with other countries could be done by the September 1 Labor Day holiday, citing talks with 18 top trade partners and another revision to a deal with China to reopen the flow of rare earth minerals and magnets. The United States sent a new proposal to the European Union on Thursday and India sent a delegation to Washington DC for more talks. "So we have countries approaching us with very good deals," Bessent said on Fox Business Network. "We have 18 important trading partners. ... If we can ink 10 or 12 of the important 18, there are another important 20 relationships, then I think we could have trade wrapped up by Labor Day," Bessent said. He did not mention any changes to a July 9 deadline for countries to reach deals with the United States or see tariffs spike higher but has previously said that countries negotiating in good faith could get deals. But Trump told reporters at the White House that he could extend the tariff deadline or "make it shorter," adding that within the next week and a half, he would notify countries of their tariff rates. "I'd like to just send letters out to everybody: Congratulations. You're paying 25 per cent" tariffs, Trump said in an apparent joke. Bessent said the United States and China had resolved issues surrounding shipments of Chinese rare earth minerals and magnets to the US, further modifying a deal reached in May in Geneva. China's commerce ministry said on Friday the two countries have confirmed details on the framework of implementing the Geneva trade talks consensus. It said China will approve export applications of controlled items in accordance with the law. It did not mention rare earths. US President Donald Trump has abruptly cut off trade talks with Canada over its tax targeting US technology firms, calling it a "blatant attack" and saying that he would set a new tariff rate on Canadian goods within the next week. The move plunges US relations with its second-largest trading partner back into chaos after a period of relative calm. It also came just hours after Treasury Secretary Scott Bessent struck an upbeat tone on trade, touting progress had been made with China on reviving the flow of critical minerals for the US manufacturing sector and in other key tariff negotiations. The often-chaotic rollout of Trump's import levies since his return to office this year have frequently whipsawed financial markets, and have begun to weigh on consumer spending, the bedrock of the US economy. US stocks were briefly batted lower by his broadside against Canada but managed to close out the week at record highs for the S&P 500 and Nasdaq. Trump's action comes ahead of Canada's plans to begin collecting on Monday a longstanding digital services tax on US technology firms including Amazon, Meta, Alphabet's Google and Apple among others. The tax is 3.0 per cent of the digital services revenue a firm takes in from Canadian users above $US20 million ($A31 million) in a calendar year, and payments will be retroactive to 2022. Trump, in a post on his Truth Social media platform, called the tax "a direct and blatant attack on our country" and said Canada was a "very difficult country to TRADE with". "Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump said. "We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period." Canada is the second-largest US trading partner after Mexico, buying $US349.4 billion of US goods last year and exporting $US412.7 billion to the US, according to US Census Bureau data. Canadian Prime Minister Mark Carney had said on June 16 he and Trump agreed to try to wrap up a new economic and security deal within 30 days. "The Canadian government will continue to engage in these complex negotiations with the United States in the best interests of Canadian workers and businesses," Carney's office said in a statement. Earlier on Friday, Bessent said the Trump administration's various trade deals with other countries could be done by the September 1 Labor Day holiday, citing talks with 18 top trade partners and another revision to a deal with China to reopen the flow of rare earth minerals and magnets. The United States sent a new proposal to the European Union on Thursday and India sent a delegation to Washington DC for more talks. "So we have countries approaching us with very good deals," Bessent said on Fox Business Network. "We have 18 important trading partners. ... If we can ink 10 or 12 of the important 18, there are another important 20 relationships, then I think we could have trade wrapped up by Labor Day," Bessent said. He did not mention any changes to a July 9 deadline for countries to reach deals with the United States or see tariffs spike higher but has previously said that countries negotiating in good faith could get deals. But Trump told reporters at the White House that he could extend the tariff deadline or "make it shorter," adding that within the next week and a half, he would notify countries of their tariff rates. "I'd like to just send letters out to everybody: Congratulations. You're paying 25 per cent" tariffs, Trump said in an apparent joke. Bessent said the United States and China had resolved issues surrounding shipments of Chinese rare earth minerals and magnets to the US, further modifying a deal reached in May in Geneva. China's commerce ministry said on Friday the two countries have confirmed details on the framework of implementing the Geneva trade talks consensus. It said China will approve export applications of controlled items in accordance with the law. It did not mention rare earths. US President Donald Trump has abruptly cut off trade talks with Canada over its tax targeting US technology firms, calling it a "blatant attack" and saying that he would set a new tariff rate on Canadian goods within the next week. The move plunges US relations with its second-largest trading partner back into chaos after a period of relative calm. It also came just hours after Treasury Secretary Scott Bessent struck an upbeat tone on trade, touting progress had been made with China on reviving the flow of critical minerals for the US manufacturing sector and in other key tariff negotiations. The often-chaotic rollout of Trump's import levies since his return to office this year have frequently whipsawed financial markets, and have begun to weigh on consumer spending, the bedrock of the US economy. US stocks were briefly batted lower by his broadside against Canada but managed to close out the week at record highs for the S&P 500 and Nasdaq. Trump's action comes ahead of Canada's plans to begin collecting on Monday a longstanding digital services tax on US technology firms including Amazon, Meta, Alphabet's Google and Apple among others. The tax is 3.0 per cent of the digital services revenue a firm takes in from Canadian users above $US20 million ($A31 million) in a calendar year, and payments will be retroactive to 2022. Trump, in a post on his Truth Social media platform, called the tax "a direct and blatant attack on our country" and said Canada was a "very difficult country to TRADE with". "Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump said. "We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period." Canada is the second-largest US trading partner after Mexico, buying $US349.4 billion of US goods last year and exporting $US412.7 billion to the US, according to US Census Bureau data. Canadian Prime Minister Mark Carney had said on June 16 he and Trump agreed to try to wrap up a new economic and security deal within 30 days. "The Canadian government will continue to engage in these complex negotiations with the United States in the best interests of Canadian workers and businesses," Carney's office said in a statement. Earlier on Friday, Bessent said the Trump administration's various trade deals with other countries could be done by the September 1 Labor Day holiday, citing talks with 18 top trade partners and another revision to a deal with China to reopen the flow of rare earth minerals and magnets. The United States sent a new proposal to the European Union on Thursday and India sent a delegation to Washington DC for more talks. "So we have countries approaching us with very good deals," Bessent said on Fox Business Network. "We have 18 important trading partners. ... If we can ink 10 or 12 of the important 18, there are another important 20 relationships, then I think we could have trade wrapped up by Labor Day," Bessent said. He did not mention any changes to a July 9 deadline for countries to reach deals with the United States or see tariffs spike higher but has previously said that countries negotiating in good faith could get deals. But Trump told reporters at the White House that he could extend the tariff deadline or "make it shorter," adding that within the next week and a half, he would notify countries of their tariff rates. "I'd like to just send letters out to everybody: Congratulations. You're paying 25 per cent" tariffs, Trump said in an apparent joke. Bessent said the United States and China had resolved issues surrounding shipments of Chinese rare earth minerals and magnets to the US, further modifying a deal reached in May in Geneva. China's commerce ministry said on Friday the two countries have confirmed details on the framework of implementing the Geneva trade talks consensus. It said China will approve export applications of controlled items in accordance with the law. It did not mention rare earths.
Straits Times
4 hours ago
- Business
- Straits Times
Democrat Wyden presses Bessent to commit to US sanctions on Russia
U.S. Senator Ron Wyden (D-OR) speaks during a Senate Finance Committee hearing on the 2025 budget on Capitol Hill in Washington, U.S., March 21, 2024. REUTERS/Elizabeth Frantz/File Photo WASHINGTON - The top Senate Finance Committee Democrat pressed U.S. Treasury Secretary Scott Bessent on Friday to commit to enforcing Ukraine-related sanctions against Russia and to clarify comments about Russia rejoining an international bank payments network. In a letter to Bessent, Senator Ron Wyden also sought answers on how the U.S.-Ukraine critical minerals deal and investment agreement would help improve Ukraine's post-war security and not benefit any entity or country that aided Russia's war effort. Wyden cited Bessent's comments during his confirmation hearing that he was prepared to strengthen Russian sanctions, including on oil majors, if Trump requested this to help end the Ukraine war, which Bessent called "one of the greatest tragedies of my adult life." "I ask that you reaffirm your commitment to stringently enforce these sanctions and answer questions about how you envision other measures pursued by this administration, including agreements with Ukraine, potentially working in conjunction with these sanctions," Wyden wrote. The Oregon Democrat, who has opposed most of Trump's trade and tax agenda advanced by Bessent, asked the Treasury chief to explain comments he made to Fox News Channel in which he did not rule out bringing Russia back into the SWIFT international banking network. Russia was expelled from the payments messaging system after its invasion of Ukraine in 2022. "Would Treasury allow Russian banks to rejoin SWIFT absent a comprehensive peace agreement with Ukraine that fully addresses Russia's unprovoked invasion of Ukraine?" Wyden asked in a series of questions for Bessent to answer. Wyden also asked whether Bessent would continue the U.S. Treasury's implementation of commitments by G7 leaders to curtail Russia's use of the international financial system to support its war against Ukraine. A Treasury spokesperson did not immediately respond to a request for comment on Wyden's letter. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Reuters
4 hours ago
- Business
- Reuters
Democrat Wyden presses Bessent to commit to US sanctions on Russia
WASHINGTON, June 27 (Reuters) - The top Senate Finance Committee Democrat pressed U.S. Treasury Secretary Scott Bessent on Friday to commit to enforcing Ukraine-related sanctions against Russia and to clarify comments about Russia rejoining an international bank payments network. In a letter to Bessent, Senator Ron Wyden also sought answers on how the U.S.-Ukraine critical minerals deal and investment agreement would help improve Ukraine's post-war security and not benefit any entity or country that aided Russia's war effort. Wyden cited Bessent's comments during his confirmation hearing that he was prepared to strengthen Russian sanctions, including on oil majors, if Trump requested this to help end the Ukraine war, which Bessent called "one of the greatest tragedies of my adult life." "I ask that you reaffirm your commitment to stringently enforce these sanctions and answer questions about how you envision other measures pursued by this administration, including agreements with Ukraine, potentially working in conjunction with these sanctions," Wyden wrote. The Oregon Democrat, who has opposed most of Trump's trade and tax agenda advanced by Bessent, asked the Treasury chief to explain comments he made to Fox News Channel in which he did not rule out bringing Russia back into the SWIFT international banking network. Russia was expelled from the payments messaging system after its invasion of Ukraine in 2022. "Would Treasury allow Russian banks to rejoin SWIFT absent a comprehensive peace agreement with Ukraine that fully addresses Russia's unprovoked invasion of Ukraine?" Wyden asked in a series of questions for Bessent to answer. Wyden also asked whether Bessent would continue the U.S. Treasury's implementation of commitments by G7 leaders to curtail Russia's use of the international financial system to support its war against Ukraine. A Treasury spokesperson did not immediately respond to a request for comment on Wyden's letter.
