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Yahoo
8 hours ago
- Business
- Yahoo
Europe surrenders to Trump (and thus secures victory by the back door)
S&P 500 futures traded up this morning on news that the U.S. and the EU, America's largest trading partner, have struck a deal that imposes 15% tariffs on imported goods. The U.S. markets love that certainty. But the devil is in the details—which is why European stocks are rising faster than U.S. futures this morning. Stocks are up this morning on the certainty of a new trade deal between the U.S. and the EU. American businesses and consumers will now face a 15% tariff on all imports from Europe, while President Trump confirmed the EU tariff level has been reduced to zero. Previously, the tariff level on both sides was just under 3%. President Trump, visiting his golf courses in Scotland, is positioning the deal as a win. The agreement includes a large amount of direct investment into the U.S. by Europe, such as $750 billion in energy purchases, $600 billion in extra direct investment, and the purchase of 'a vast amount of military equipment,' the president said. S&P 500 futures moved up 0.27% this morning, but the STOXX Europe 600 rose by more than double that in early trading. Why are investors in Europe so happy about Trump's great victory over them? The devil is in the details, and the pact seems to contain several advantages for the EU. The auto tariffs, for instance, now benefit European manufacturers over North American competitors. The 15% level is lower than that faced by Canada and Mexico, which are much nearer to the U.S. auto market. 'How can the administration square a 15% tariff on cars from Europe and Japan, while manufacturers in the U.S., Canada, and Mexico are laboring under 25% tariffs?' Patrick Anderson, CEO of the Anderson Economic Group, told the New York Times. The deal does not require the EU to alter its digital services tax on large tech companies. There is also no current change in drug pricing rules. The pharma industry is one of Europe's biggest, and Trump has long complained that Europeans get drugs cheap because companies inflate pricing in the U.S. Meanwhile the 'new' direct investment and military purchases may likely have happened anyway—Europe is fighting a war against Russia on its Eastern flank, after all. 'Europe is already the largest foreign investor in the U.S., with European direct investment increasing by roughly $200 billion from 2023 to 2024. Three times that over an undefined period is hardly a great coup,' the Wall Street Journal's editorial board noted. Simon Nixon, who writes the Wealth of Nations Substack, said: 'The real win from the EU's perspective is that it has successfully fended off Trump's demands that it rewrite its regulatory rulebook to benefit U.S. companies. In particular, Trump had been demanding changes to EU digital services rules, agricultural rules, and pharmaceutical pricing. 'The irony is that this is the one thing that U.S. companies would have most wanted out of any trade deal. Instead, they have been hit with a massive hike in tariffs on imports … without any increase in EU market access.' In Europe, analysts seem to be concluding that the deal is mostly Scotch mist. The tariff level itself is much lower than what Trump previously threatened, and the accompanying investment will get lost in the mail. 'The EU and the U.S. agreed that U.S. consumers should pay more tax—levied at 15% for imports from the EU. EU President [Ursula] von der Leyen made vague pledges to buy stuff from and invest in the U.S., without the necessary authority to make those pledges reality. Pharmaceuticals and steel seem to be excluded from this deal. The result is better for the U.S. economy than the worst-case scenario, but worse for the U.S. economy than the situation in January this year,' UBS's Paul Donovan told clients this morning. Here's a snapshot of the action prior to the opening bell in New York: S&P 500 futures were up 0.3% this morning, premarket, after the index closed up 0.4% on Friday, hitting a new all-time high at 6,388.64. STOXX Europe 600 was up 0.67% in early trading. The U.K.'s FTSE 100 was up 0.14% in early trading. Japan's Nikkei 225 was down 1.10%. China's CSI 300 Index was up 0.21%. The South Korea KOSPI was up 0.42%. India's Nifty 50 was down 0.6%. Bitcoin was flat at just under $119K. This story was originally featured on
The Wire
5 days ago
- Politics
- The Wire
Parliament Unfiltered: I Came, I Saw But Did I Question it?
If our parliament can specially meet to celebrate anniversaries, why not for issues like terrorist attacks, inflation, unemployment, women's safety or climate change? Opposition MPs protest in Lok Sabha demanding rollback of Bihar SIR during the monsoon session of parliament. Photo: PTI June 30 marks the International Day of Parliamentarism every year and its commemoration seems more valid as the downhill status of democracies all over the world comes to mind. An incisive couplet by John Dryden states, 'Democracy is essentially anti-authoritarian – that is, it not only demands the right but imposes the responsibility of thinking for ourselves.' V-dem or the Varieties of Democracy index, published in March of this year, points out that India is experiencing 'Autocratization'. Honouring this day in its right spirit calls for a systematic analysis of the developments in the parliament in recent years, acknowledging citizen discontent registering the damage and calling on to policymakers for a reformation that is as much internal as is political. Special session: A hot potato? The demand by opposition parties for a special session post Pahalgam terror attack and the government's reluctance to take it up poses a lot of questions about the direction our democracy is heading towards. The terror attack's implications have been on everyone's lips since April 22 when it blurred the boundaries between black and white. Arguing that 'it is crucial for the people and their representatives to discuss', Congress MP and leader of opposition in Lok Sabha Rahul Gandhi had written to Modi demanding a special session (followed by subsequent similar demands), but received no response from the government and an uncanny silence reluctance. A few incidents highlighted the need of a special session: the defence ministers' meeting at SCO concluded without a joint statement due to a lack of consensus on whether there should be strict dialogue against terrorism; the United States' President, Donald Trump, announcing a ceasefire between India and pakistan speaks volumes of New Delhi's geopolitical standing and decisions MEA has taken, putting a question mark on the future of our foreign policy; deputy chief of army staff Lieutenant General Rahul R. Singh emphasised China's involvement during Operation Sindoor. It is to be noted that he is the first such official to talk about it, while others have been constantly downplaying China's role, giving a clear indication about the unaligned opinions of our defence officials. Chief of defence staff General Anil Chauhan acknowledged loss of aircraft and downing of jets during the four day clashes with Pakistan recently, evading deeper questions about why, how and how many losses we actually suffered, raising questions about the government's credibility. Here's what makes me question the government's indifference to the demand: in 2017, a joint midnight session was held to launch goods and services tax (GST); in 2023, a special session was held to commemorate the 75th anniversary of India's independence in the new parliament building; and the law on women's reservation in parliament and state assemblies was also passed during this special session. All of these are issues that coincidentally align with the ruling BJP-led government's ideologies and an apparent sense of effort is felt when the same special sessions are demanded in the aftermath of terrorist attacks that sent the whole nation into shock. A backdrop of dissent: Reluctance as refusal to reimagine The list of reluctances is longer than just the demand for a special session, the unfulfillment of which is saddening. The lesser number of sittings, shorter sessions, budget being guillotined and passing of bills within minutes – they all point towards a sorry state of affairs. Lok Sabha's sittings have come down from an average of 135 in a year in the first term of Lok Sabha to just 55 in the 17th. A research by PRS suggests that in 2020, the Indian parliament sat in session for 33 days only, a historic low. When Covid struck and suspended the daily lives of millions of people, the Indian parliament sat shut while many others switched to functioning online or in hybrid mode and met on set dates like in the UK, Australia, Canada and South Africa. The Supreme Court of UK, in 2019, struck down the prorogation of parliament by the Queen as it prevented 'Parliament from being able to do its job.' Canada organised a virtual parliament, allowing MPs to ask questions over a video call, while Chile amended its constitution, permitting the senate to hold sessions in a mixed face-to-face and virtual mode, with remote voting, preventing the compromise on sittings. Sessions have been cancelled and called off on various occasions due to unnecessary reasons, like for the Vidhan Sabha elections in five states in 2011, when political parties agreed to cut short the budget session. In 2017, 2018, 2022 and 2023, winter session was delayed and curtailed because of assembly elections, stifling the parliament's power as an effective institution. The government's unilateral power to decide where, when and on what agenda the session takes place robs citizens of their right to question through elected representatives, equating the opposition's power of check and balance to zero. In the 17th Lok Sabha, 11 out of the 15 sessions were adjourned early. As a result, 40 scheduled sittings did not take place. Parliament: Rejuvenation of rights or erosion of efficacy? In 2004, 2013, 2018 and 2023, 100% of the budget was guillotined, meaning it was not debated at all before being passed. In the monsoon session of 2020, the controversy around farm bills was used by the government as an excuse to push through 15 bills in just eight hours in the absence of opposition due to their boycott. In 2021, during monsoon session again, Lok Sabha cleared 18 bills amid protests by the opposition who demanded debate on farmers' protests and the Pegasus spyware scandal. Disappointingly enough, in 2023, the opposition protested in demand for a discussion on the Manipur crisis but the Rajya Sabha passed a bill within just 3 minutes. Even a papdi chaat cannot be prepared in 3 minutes! Many other controversial bills, like forest conservation amendment bill and digital personal data protection bill, were also passed quickly with no opposition MP participating in debate. Every citizen wants laws to be passed with clear deliberation, intense discussion and stakeholder consultation on the merits and demerits through parliamentary committees, but that is not happening anymore. The percentage of bills referred to parliament standing committees has been just 60%, 71%, 25%, 16% and 20% between the 14th and the 18th Lok Sabha (so far), respectively. Can we ever unsee that? All this evidence forces me to challenge the parliament as a democratic institution and dub it as the government's bill passing factory. This might sound dystopian, but the country's highest institution for lawmaking as we are taught in school books has blatantly failed to live up to its name and fame. A meeting was indeed convened on April 24 with the presence of ministers and leaders from all parties. The absence of the prime minister pointed towards the lack of importance allotted to contemporary issues of national relevance. However, a meeting doesn't suffice for a well-organised session and ultimately the special session never took place. This concerning trend effectively calls to question the accountable executive, stable legislature and righteous judiciary we preach other democracies about. Are we fooling ourselves? To conclude All I wonder as a young person struggling to mark my presence in this democracy is that if our parliament can specially meet to celebrate anniversaries, why not for issues like terrorist attacks, inflation, unemployment, women's safety or climate change? Such is the resistance of the government to debate controversial issues like Pahalgam terror attack, electoral rolls revision in Bihar, etc that it would rather let the opposition protest and disrupt proceedings than schedule the debate. The ongoing 21-day-short monsoon session of parliament has already lost more than four days to early adjournments. The need of the hour are longer parliament sessions so that there is time and space for discussion on all these urgent issues. The parliament exists to deliberate on issues that matter to us – the country's citizens – and is not an instrument of celebrating the myriad meaningless milestones of the government. Readers of this article must rise to summon their questioning capacity and become active agents of change. As Dryden said, let's take the responsibility of thinking for ourselves, ourselves! Just as the age-old saying goes, 'Fine words butter no parsnips', we, as citizens, demand an effective resolution to issues coupled with a proactive approach to accountability. It is high time we stopped taking empty promises for real action and impact. Questioning today may guarantee us a better place in next year's democracy index – the one we blankly stare at every year. The true commemoration of International Day of Parliamentarism will only take place the moment we truly become 'citizens' and not 'followers'. It is imperative for us to demand accountability as we are the demos (people) in this democracy. Guncha Shandilya is a student of history at University of Delhi and worked on this article as part of her research internship with Maadhyam, a civic engagement initiative. The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments.
ITV News
11-07-2025
- Business
- ITV News
Trump ramps up trade war as he threatens to double tariffs on most nations
US President Donald Trump has threatened a 35% tariff on goods from Canada in a dramatic escalation of a trade war – and may double the blanket tariff rate on most other countries. The US president's announcement late on Thursday is the latest example of a sporadic tariff policy that's left investors, trading partners, businesses and everyday Americans alike scrambling to make plans. It wasn't immediately clear if the new tariffs, set to take effect August 1, would apply to all Canadian goods or if Trump's threat applied only to the limited number of goods on which the United States currently levies tariffs.'Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses,' Prime Minister Mark Carney said in a statement to X.'We will continue to do so as we work towards the revised deadline of August 1.' Meanwhile Brazil, faced with the prospect of a 50% increase of import taxes, has said it will impose retaliatory tariffs on the US if the Trump administration follows through on its pledge. It comes amid a flurry of letters Trump has sent to world leaders over the past week informing them what rates their goods will be tariffed at come August 1, in the absence of any trade deals. Trump has sent nearly two dozen such Canada is by far the largest trading partner with the United States to receive a letter from the President this week. Canada and the US have been in trade talks with the hopes of reaching a deal by July News also reported on Thursday that Trump said remaining US trading partners, that have not yet received trade letters or reached framework agreements, will be charged a blanket tariff rate. The United States currently imposes a 10% tariff on nearly all foreign goods coming into the country, but Trump on Thursday said he might double that.'We're just going to say all of the remaining countries are going to pay, whether it's 20% or 15%. We'll work that out now,' Trump told NBC News. It is not clear how the US trading relationship with the UK will be affected, with both countries having signed a trade deal in a bid to reduce some tariffs in June. Canada is the top buyer of US exported goods, importing $349 billion (around £257 billion) worth last year, according to Department of Commerce data. Tariffing Canadian goods could, therefore, backfire if additional retaliatory tariffs are put in place on American goods. Meanwhile, Canada shipped $413bn (around £300bn) worth of goods to the US last year, the third-highest source of foreign goods. In Thursday's letter, Trump cited the United States' fentanyl issue as one of his original reasons for imposing tariffs on the country's northern neighbour. However, according to US federal statistics, Canada is responsible for a minuscule percentage of illegal fentanyl coming into the US. With only 0.2% of the 21,889 pounds of fentanyl seized by US border authorities in 2024 seized at the Canadian border. 'If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter,' Trump wrote. "These Tariffs may be modified, upward or downward, depending on our relationship with your country." Canadian Prime Minister Mark Carney responded by saying that Canada had made 'vital progress to stop the scourge of fentanyl in North America'.'We are committed to continuing to work with the United States to save lives and protect communities in both our countries,' he added.
Observer
09-07-2025
- Business
- Observer
How Trump's trade war is upending the global economy
U.S. President Donald Trump's tariff decisions since he took office on January 20 have shocked financial markets and sent a wave of uncertainty through the global economy. Here is a timeline of the major developments: February 1 - Trump imposes 25% tariffs on Mexican and most Canadian imports and 10% on goods from China, demanding they curb the flow of fentanyl and illegal immigrants into the United States. February 3 - Trump suspends his threat of tariffs on Mexico and Canada, agreeing to a 30-day pause in return for concessions on border and crime enforcement. The U.S. does not reach such a deal with China. February 7 - Trump delays tariffs on de minimis, or low-cost, packages from China until the Commerce Department can confirm that procedures and systems are in place to process them and collect tariff revenue. February 10 - Trump raises tariffs on steel and aluminum to a flat 25% "without exceptions or exemptions". March 3 - Trump says 25% tariffs on goods from Mexico and Canada will take effect from March 4 and doubles fentanyl-related tariffs on all Chinese imports to 20%. March 5 - He agrees to delay tariffs for one month on some vehicles built in Canada and Mexico after a call with the CEOs of General Motors and Ford and the chair of Stellantis. March 6 - Trump exempts goods from Canada and Mexico under a North American trade pact for a month from the 25% tariffs. March 26 - Trump unveils a 25% tariff on imported cars and light trucks. April 2 - He announces global tariffs with a baseline of 10% across all imports and significantly higher duties on some of the United States' biggest trading partners. April 9 - Trump pauses for 90 days most of his country-specific tariffs that kicked in less than 24 hours earlier following an upheaval in financial markets that erased trillions of dollars from bourses around the world. The 10% blanket duty on almost all U.S. imports stays in place. Trump says he will raise the tariff on Chinese imports to 125% from the 104% level that took effect a day earlier. This pushes the extra duties on Chinese goods to 145%, including the fentanyl-related tariffs imposed earlier. April 13 - The U.S. administration grants exclusions from steep tariffs on smartphones, computers and some other electronics imported largely from China. April 22 - The Trump administration launches national security probes under Section 232 of the Trade Act of 1962 into imports of both pharmaceuticals and semiconductors as part of a bid to impose tariffs on both sectors. May 4 - Trump imposes a 100% tariff on all movies produced outside the U.S. May 9 - Trump and British Prime Minister Keir Starmer announce a limited bilateral trade agreement that leaves in place 10% tariffs on British exports, modestly expands agricultural access for both countries and lowers prohibitive U.S. duties on British car exports. May 12 - The U.S. and China agree to temporarily slash reciprocal tariffs. Under the 90-day truce, the U.S. will cut the extra tariffs it imposed on Chinese imports to 30% from 145%, while China's duties on U.S. imports will be slashed to 10% from 125%. May 13 - The U.S. cuts the low value "de minimis" tariff on China shipments, reducing duties for items valued at up to $800 to 54% from 120%. May 23 - Trump says he is recommending a straight 50% tariff on goods from the European Union starting on June 1. He also warns Apple it would face 25% tariff if phones it sold in the U.S. were manufactured outside of the country. May 25 - Trump backpedals on his threat to slap 50% tariffs on EU imports, agreeing to extend the deadline for talks until July 9. May 28 - A U.S. trade court blocks Trump's tariffs from going into effect in a sweeping ruling that the president overstepped his authority by imposing across-the-board duties on imports from U.S. trade partners. The Trump administration says it will appeal the ruling. May 29 - A federal appeals court temporarily reinstates the most sweeping of Trump's tariffs, pausing the lower court's ruling to consider the government's appeal, and orders the plaintiffs in the cases to respond by June 5 and the administration by June 9. June 3 - Trump signs an executive proclamation activating a hike in the tariffs on imported steel and aluminum to 50% from 25%. June 12 - Trump warns at the White House event that he may soon hike auto tariffs, arguing that could prod automakers to speed U.S. investments. July 3 - Trump says the U.S. will place a 20% tariff on many Vietnamese exports, with trans-shipments from third countries through Vietnam facing a 40% levy. July 6 - He says on Truth Social that countries aligning themselves with the "Anti-American policies" of BRICS will be charged an additional 10% tariff. July 7 - Trump says on Truth Social the additional higher duties announced in earlier months will kick in with delay on August 1, as the U.S. closes on completion of several trade deals. In letters sent to 14 countries including Japan, South Korea and Serbia, he says he will introduce tariffs between 25% and 40% from August 1. July 8 - Trump says he will impose a 50% tariff on imported copper and soon introduce levies on semiconductors and pharmaceuticals.
Straits Times
16-06-2025
- Business
- Straits Times
Timeline: How Trump's tariffs have upended the global economy
US President Donald Trump's tariff decisions since he took office on Jan 20 have shocked financial markets. PHOTO: AFP US President Donald Trump's tariff decisions since he took office on Jan 20 have shocked financial markets and sent a wave of uncertainty through the global economy. Here is a timeline of the major developments: Feb 1 - Mr Trump imposes 25 per cent tariffs on Mexican and most Canadian imports and 10 per cent on goods from China, demanding that the countries curb the flow of fentanyl and illegal immigrants into the US. Feb 3 - By suspending his threat of tariffs on Mexico and Canada, the President agrees to a 30-day pause in return for concessions on border and crime enforcement. No such deal is reached with China. Feb 7 - Mr Trump delays tariffs on de minimis, or low-cost, packages from China until the Commerce Department can confirm that procedures and systems are in place to process them and collect tariff revenue. Feb 10 - Tariffs on all steel and aluminium imports are raised to a flat 25 per cent 'without exceptions or exemptions'. March 3 - Mr Trump says the 25 per cent tariffs on Mexican and Canadian imports will take effect from March 4. He also doubles fentanyl-related tariffs on all Chinese imports to 20 per cent. March 5 - The president agrees to delay tariffs for one month on some vehicles built in Canada and Mexico, after a call with the chief executives of General Motors and Ford and the chair of Stellantis. March 6 - Goods from Canada and Mexico covered by the North American trade pact are exempted from the 25 per cent tariffs for one month. March 26 - The President unveils a 25 per cent tariff on imported cars and light trucks. April 2 - The administration announces global tariffs with a baseline of 10 per cent across all imports and significantly higher duties on some of the US' biggest trading partners. April 9 - Most country-specific tariffs are paused for 90 days, less than 24 hours after they take effect, following a plunge in financial markets that wipes out trillions of dollars. However, the 10 per cent blanket tariff remains in force. Mr Trump says he will raise the tariff on Chinese imports to 125 per cent from the 104 per cent that took effect a day earlier. This pushes the extra duties on Chinese goods to 145 per cent, including the fentanyl-related tariffs. April 13 - The US administration grants exclusions from steep tariffs on smartphones, computers and some other electronics imported largely from China. April 22 - National security probes are launched under Section 232 of the Trade Act of 1962 into imports of pharmaceuticals and semiconductors as part of a bid to impose tariffs on both sectors. May 4 - Mr Trump threatens to impose a 100 per cent tariff on all movies produced outside the US. May 9 - Mr Trump and British Prime Minister Keir Starmer announce a limited bilateral trade agreement. It retains 10 per cent tariffs on British exports, modestly expands agricultural access for both countries and lowers US duties on British car exports. May 12 - The US and China agree to slash reciprocal tariffs under a 90-day truce. The US will cut its extra tariffs on Chinese imports to 30 per cent from 145 per cent, while China's duties on US imports will be slashed to 10 per cent from 125 per cent. May 13 - The US cuts low-value or de minimis tariffs on China shipments, reducing duties on items valued up to US$800 (S$1,030) to 54 per cent from 120 per cent. May 23 - Mr Trump proposes a 50 per cent tariff on goods from the European Union starting on June 1. He also warns Apple that it will face a 25 per cent tariff if the phones it sells in the US are manufactured abroad. May 25 - Backpedalling on his threat to slap 50 per cent tariffs on EU imports, the president agrees to extend the deadline for talks between the US and the bloc until July 9. May 28 - A US trade court blocks Mr Trump's sweeping tariffs, ruling that the president has overstepped his authority by imposing across-the-board import duties on US trade partners. The Trump administration says it will appeal the ruling. May 29 - A federal appeals court temporarily reinstates the most sweeping of Mr Trump's tariffs, saying it is pausing the lower court's ruling to consider the government's appeal. It also orders the plaintiffs to respond by June 5 and the administration by June 9. June 4 - Mr Trump signs an executive proclamation that activates a hike in the tariffs on imported steel and aluminium to 50 per cent from the 25 per cent rate introduced in March. June 11 - US and Chinese officials reach a preliminary deal on how to implement the consensus that the two sides reached in Geneva in May. The agreement comes after two days of talks in London, with the details of the deal to be sent back to Mr Trump and Chinese President Xi Jinping. Key dates ahead June 15-17: Mr Trump attends the annual summit of the Group of Seven nations at the Rocky Mountain resort town of Kananaskis in Canada. Tariffs are expected to be a major topic of discussion. July 8: 'Liberation Day' tariffs kick in following the 90-day suspension period, potentially affecting imports from multiple countries. July 9: Deadline for the US and EU to negotiate a deal to avert a 50 per cent tariff on all EU imports. July 14: The EU's 90-day pause on retaliatory tariffs expires. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
