United News of Bangladesh

The European Union has decided to postpone retaliatory tariffs on U.S. goods that were set to begin Monday, expressing hope that a trade agreement can be reached with the Trump administration before the new tariffs take effect on August 1. “This is now the time for negotiations,” European Commission President Ursula von der Leyen said Sunday in Brussels, following a letter from U.S. President Donald Trump announcing a 30% tariff on imports from the EU and Mexico beginning August 1. The EU, the largest trading bloc and America’s top trading partner, had planned to introduce its own countermeasures starting Monday at midnight Brussels time. However, von der Leyen said the EU will delay those measures until August 1, citing Trump’s letter as a sign that both sides have until then to reach an agreement. Europe’s key exports to the U.S. include cars, pharmaceuticals, aircraft, chemicals, medical equipment, and wine and spirits. “We have always been clear that we prefer a negotiated solution,” von der Leyen said. “But if an agreement cannot be reached, we will continue preparing our countermeasures so we’re fully ready.” Trump announces 30% tariffs on EU and Mexico from Aug 1 Italian Prime Minister Giorgia Meloni warned that a trade war would weaken both sides at a time of shared global challenges. “Europe has the economic and financial strength to argue for a fair and sensible agreement,” her office said in a statement, adding that Italy would work actively toward a deal. Italian Foreign Minister Antonio Tajani is scheduled to travel to Washington on Monday for talks with U.S. officials and lawmakers. Meloni’s right-wing government — the only EU administration represented at Trump’s inauguration — has positioned itself as a mediator between Brussels and Washington. President Trump has repeatedly claimed that past trade deals have disadvantaged the U.S. economy and argues that his tariff policy will help restore fairness. In his letter to the EU, he labeled the American trade deficit a national security concern. White House National Economic Council Director Kevin Hassett told ABC News on Sunday that Trump was not satisfied with the current draft trade proposals. “He’s seen some sketches of deals negotiated with Howard Lutnick and others on the trade team, and he thinks they’re not good enough,” Hassett said. “Sending these letters was his way of drawing a line in the sand. We’ll see how things develop.” Trump’s tariff threats have caused prolonged uncertainty for U.S. trade partners and businesses worldwide — from French wine producers to German carmakers — with deadlines frequently shifting. According to Eurostat, trade in goods and services between the EU and the U.S. reached €1.7 trillion ($2 trillion) in 2024, averaging €4.6 billion daily. EU trade ministers are set to meet Monday to assess trade relations with both the U.S. and China. The ongoing friction with Washington has prompted the EU to consider deepening ties with China. Speaking alongside Indonesian President Prabowo Subianto, von der Leyen emphasized the need for diversified and trustworthy trade partnerships. Announcing closer cooperation between the EU and Indonesia, she said current tensions highlight the importance of building predictable economic relationships. US stocks retreat from record highs amid tariff tensions with Canada President Prabowo echoed the sentiment, noting that while the U.S. remains a global leader, “we would like to see a very strong Europe” and advocate for multilateral engagement. Source: Agency 

President Donald Trump on Saturday unveiled plans to impose 30% tariffs on imports from the European Union and Mexico starting August 1, escalating tensions with two of the United States' most important trading partners. In letters posted to his social media account, Trump justified the move as part of his broader campaign to “rebuild” the U.S. economy, arguing that the country has long been exploited in global trade. He claimed the tariffs are necessary to correct trade imbalances and protect national security. Addressing Mexican President Claudia Sheinbaum, Trump acknowledged Mexico’s cooperation on border security and drug trafficking but insisted it hadn’t done enough to prevent the U.S. from becoming a “Narco-Trafficking Playground.” In his letter to the EU, Trump accused the bloc of maintaining unfair trade policies and persistent trade deficits, calling the relationship “far from reciprocal.” The announcement follows Trump’s previous decision to pause tariffs for 90 days to allow for negotiations. With that grace period ending this week, Trump is now moving forward, though implementation has been slightly delayed. Trump plans to hike tariffs on Canadian goods to 35% The response from Europe and Mexico was swift and critical. European Commission President Ursula von der Leyen said the EU remains committed to negotiations but warned of “proportionate countermeasures” if needed. French President Emmanuel Macron emphasized the EU’s unity, while Swedish and Danish leaders condemned the tariffs as short-sighted and harmful to global stability. Italy’s Prime Minister’s Office said triggering a transatlantic trade war “makes no sense,” and trade ministers from EU nations are set to meet Monday to coordinate a response. Mexico expressed disappointment, calling the move “unfair treatment” and emphasizing the need for “cool-headed” diplomacy. President Sheinbaum voiced hope for better terms through ongoing discussions. If implemented, the tariffs could affect nearly every sector of transatlantic and North American trade. In 2024, trade between the U.S. and EU totaled $2 trillion, with key European exports including pharmaceuticals, automobiles, aircraft, and wine. Critics say Trump’s moves threaten decades-old global trade rules and could isolate the U.S. from key economic partners. Source: Agency 

U.S. stocks dipped on Friday, pulling the S&P 500 back from its all-time high as the Trump administration ramped up tariff threats against Canada. The S&P 500 was down 0.3% in midday trading, a day after reaching a record. The benchmark index is on track for its first weekly loss in three weeks. The Dow Jones Industrial Average fell 331 points, or 0.7%, and the Nasdaq composite slipped 0.1%, both also poised to end the week lower. Bond yields rose, with the 10-year Treasury yield increasing to 4.41% from 4.34% late Thursday. In a letter to Canadian Prime Minister Mark Carney on Thursday, President Donald Trump announced a sharp increase in tariffs on Canadian imports, raising rates to 35%, up from the previous 25%. The move further strained trade relations with Canada, a historically close ally. The White House’s strategy aims to pressure countries into trade deals through tariff threats. Although Wednesday was set as the original deadline, the negotiation window has been extended to August 1. So far, only the UK and Vietnam have reached deals with the U.S. Trump also floated the possibility of 200% tariffs on pharmaceutical imports and imposed a 50% tariff on copper, aligning it with steel and aluminum duties. Despite earlier market disruptions caused by tariff policies, recent market reactions have been relatively calm. “Markets appear to believe that Trump will again back down,” said Paul Ashworth, chief North America economist at Capital Economics. “We are not so sure.” Asian markets mixed as Trump administration pushes new tariff deadlines Attention is now shifting to corporate earnings. Levi Strauss rose 9.2% after strong earnings and an improved outlook. PriceSmart climbed 4.6% following solid Q3 results and potential expansion plans in Chile. Next week, major banks including JPMorgan Chase, Wells Fargo, and Citigroup will report earnings, with S&P 500 companies expected to post 5% earnings growth for Q2— the slowest pace since Q4 of 2023. Financials, health care, and communication services weighed on markets Friday. Visa fell 2.4%, Gilead Sciences lost 3.7%, and Meta declined 1%. Nvidia, however, gained 1.2%. Airline stocks dipped despite strong earnings from Delta Air Lines: Delta dropped 1.9%, United 4.2%, and American 4.2%. T-Mobile shares slipped 0.7% after the U.S. Justice Department allowed its $4.4 billion acquisition of U.S. Cellular to proceed. U.S. Cellular gained 3.2%. Red Cat Holdings surged 19.8% following orders from Defense Secretary Pete Hegseth to ramp up drone production. European markets also traded lower after mostly down sessions in Asia. Meanwhile, bitcoin hit a new all-time high Friday, briefly surpassing $118,000 before settling near $116,683. The rally coincides with Nvidia reaching a $4 trillion valuation and anticipation ahead of U.S. Congress’ Crypto Week beginning July 14.

U.S. Secretary of State Marco Rubio is set to hold a crucial meeting with Chinese Foreign Minister Wang Yi on Friday, as tensions continue to escalate between Washington and Beijing over trade, regional security, and China’s support for Russia’s war in Ukraine. The high-level meeting, confirmed by the U.S. State Department, comes as Rubio concludes his two-day visit to Malaysia for the Association of Southeast Asian Nations (ASEAN) security summit — his first official trip to Asia as secretary of state. It will mark his first face-to-face meeting with Wang. Rubio's meeting with Wang follows a separate discussion in Kuala Lumpur with Russian Foreign Minister Sergey Lavrov, during which both sides explored options to revive peace talks on the Ukraine conflict. This diplomatic activity unfolds against growing global concern over U.S. trade policies under President Donald Trump, particularly the threat of sweeping tariffs that could impact both adversaries and allies, including many ASEAN members. While Southeast Asian leaders voiced frustration over the tariffs, Rubio said regional counterparts were more focused on security concerns and their fears of increasing Chinese assertiveness. “Of course, [tariffs] were raised. It’s an issue,” he told reporters Thursday. “But I wouldn’t say it solely defines our relationship. There’s strong enthusiasm for U.S. engagement.” Business leaders stress Bangladesh-Thailand FTA to unlock regional trade potential Rubio echoed Trump’s stance that China poses a major challenge to the U.S., particularly in trade and technology. He also reiterated Washington’s concerns over China’s indirect support for Russia’s war efforts. “The Chinese clearly have been supportive of the Russian effort — as much as they can without getting caught,” he said, hinting the issue would be raised with Wang. Rubio and Wang have used the ASEAN summit to highlight their competing visions for the Indo-Pacific. While the U.S. signed a civil-nuclear agreement with Malaysia, Wang condemned Trump’s proposed tariffs as harmful to global trade and stability. Asian markets mixed as Trump administration pushes new tariff deadlines On Thursday, Wang and Lavrov jointly criticized U.S. actions, warning against foreign interference in Southeast Asia and affirming support for ASEAN’s central role in regional affairs.

Business leaders from Bangladesh and Thailand on Wednesday stressed the importance of implementing a Free Trade Agreement (FTA) between the two countries to unlock regional trade opportunities. They also have emphasised the need to boost bilateral trade, investment, and economic cooperation to expand market access across Southeast and Asia-Pacific regions. Business leaders form the both country made the observation at a meeting between the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the Thai-Bangladesh Business Council.  FBCCI Administrator Md Hafizur Rahman presided over the meeting, which was attended by Mr. Panom Thongprayon, Chargé d'affaires of the Royal Thai Embassy in Dhaka. Bangladesh holds 2nd spot in apparel export as Vietnam gains ground  Highlighting the trade potential between Bangladesh and Thailand, Hafizur Rahman said Thailand serves as a major commercial hub in the Asia-Pacific region, while Bangladesh offers a large pool of skilled and young workforce. “These advantages present strong opportunities to enhance the competitive capabilities of both countries,” he said. Rahman identified key sectors for investment cooperation including processed food, tourism, healthcare and pharmaceuticals, infrastructure, energy, and light engineering. He expressed hope that both the countries would move forward with the FTA initiative, which he believes would accelerate the import and export of goods and services and promote bilateral investment.  He further underscored the strategic importance of leveraging regional market access through an FTA in the Asia-Pacific landscape. Chargé d'affaires Panom Thongprayon expressed optimism that Bangladesh and Thailand would work closely to strengthen bilateral trade and mutual cooperation. He said such engagements will further deepen networking among business communities from both countries. President of the Thai-Bangladesh Chamber of Commerce and former President of the Dhaka Chamber of Commerce and Industry (DCCI) Shams Mahmud, Senior Vice President of the Thai-Bangladesh Chamber and former Vice President of FBCCI Md Munir Hossain, Secretary General of FBCCI Md Alamgir, Head of FBCCI’s International Affairs Wing Md Zafar Iqbal were present at the meeting among others. Bangladesh and Thailand are strengthening their trade relationship, with plans to launch formal free trade agreement (FTA) talks by the end of 2025.  Bilateral trade reached USD 1.13 billion in 2024, with Thailand holding the second-largest trading partner position for Bangladesh in South Asia. In 2024, Thailand's exports to Bangladesh were valued at USD 1.04 billion, while Bangladesh's exports to Thailand reached $84.77 million.  Both countries are actively working to expand trade and investment opportunities, particularly in the private sector, focusing on areas like infrastructure, food processing, and ICT.  Thailand exports items like refined petroleum, cement, and rice to Bangladesh, while Bangladesh's exports to Thailand include garments, natural gas, and seafood.   

Asian stock markets showed a mixed performance on Wednesday, reflecting investor caution as the Trump administration continues its aggressive push for revised trade agreements ahead of looming tariff deadlines. Japan’s Nikkei 225 edged up 0.2% to 39,764.02, and South Korea’s Kospi rose 0.5% to 3,132.02. Both Tokyo and Seoul are negotiating with Washington to avoid higher tariffs scheduled to take effect on August 1. Analysts say car and steel exports remain key sticking points in the talks. “Sector-specific exemptions are proving to be the toughest challenge,” noted Stephen Innes of SPI Asset Management. “Japan and Korea are lobbying hard for relief, but the U.S. appears unlikely to offer concessions,” he added. Chinese markets were mixed, with Hong Kong’s Hang Seng falling 0.7% to 23,970.39, while the Shanghai Composite gained 0.3% to 3,507.69. In other regional markets, Australia’s S&P/ASX 200 lost 0.4% to 8,559.30, and India’s BSE Sensex dipped 0.2% to 83,570.86. China bans European medical devices in retaliation against EU trade restrictions Oil prices declined, and the U.S. dollar strengthened against both the yen and euro. Mizuho Bank warned that the looming tariffs are overshadowing deeper concerns over targeted sectoral tariffs designed to isolate China from key global trade networks. “The real risk lies in underestimating China’s potential retaliation, especially if it perceives coordinated actions from the U.S. and its allies,” the bank said. On Wall Street, the S&P 500 slipped 0.1% Tuesday, following its steepest drop in nearly a month. The Dow fell 0.4%, while the Nasdaq posted a marginal gain, remaining close to record highs. Source: Agency 

Asian shares mostly declined on Monday as the Trump administration ramped up pressure on trade partners to finalize new agreements ahead of Wednesday’s tariff deadline. The United States is expected to start sending formal letters to trading partners warning that higher tariffs could take effect on August 1. Japan’s benchmark Nikkei 225 slipped 0.6% to close at 39,577.66, while Hong Kong’s Hang Seng index edged down 0.2% to 23,874.18. South Korea’s KOSPI index, however, rose 0.3% to 3,064.26. In mainland China, the Shanghai Composite Index dipped 0.1% to 3,473.79. Australia’s S&P/ASX 200 also shed 0.2% to end at 8,588.70. Oil prices retreated after OPEC+ agreed on Saturday to boost production by 548,000 barrels per day starting in August. The increase in output follows recent price volatility triggered by Israeli and U.S. attacks on Iran. U.S. benchmark crude dropped 73 cents to $66.27 per barrel, while Brent crude, the global benchmark, declined by 78 cents to $68.02 per barrel. Futures markets also reflected caution, with contracts for the S&P 500 down 0.4% and Dow Jones Industrial Average futures 0.3% lower. “We expect markets to be volatile into the 9-July deadline when the 90-day pause on President Trump’s reciprocal tariffs expires for non-China trading partners,” Nomura Group said in a market commentary. Asian shares mixed as Trump’s tariff deadline looms, while US stocks set records The report noted that the short-term market outlook depends on factors such as which countries are included in Trump’s tariff letters, the rates of the proposed tariffs, and when they would take effect. Nomura added that if the tariffs are implemented at a later date, it could leave room for last-minute trade negotiations and maintain some market optimism for possible resolutions or extensions. “With the July 9 tariff deadline fast approaching, all eyes are trained on Washington, scanning for signs of escalation or retreat. The path forward isn’t clear, but the terrain is littered with risk,” said Stephen Innes, managing partner at SPI Asset Management, in a commentary. Despite concerns over trade tensions, U.S. stock markets posted strong gains last week. On Thursday, a better-than-expected jobs report pushed major indexes higher, with the S&P 500 rising 0.8% to set a new all-time high — its fourth record in five days. The Dow Jones Industrial Average gained 344 points, or 0.8%, while the Nasdaq Composite climbed 1%. In currency trading on Monday, the U.S. dollar strengthened to 145.01 Japanese yen from 144.44 yen. The euro eased slightly to $1.1771 from $1.1779.

China announced on Sunday that European medical device companies will be barred from participating in government procurement if contract values exceed 45 million yuan ($6.28 million), escalating trade tensions with the European Union. The Finance Ministry said the restrictions, effective immediately, exclude European companies that have invested in China and manufacture their products locally. The move follows Beijing's decision on Friday to impose anti-dumping duties on European brandy, primarily targeting French cognac. Although some major brandy producers received exemptions, this marks the latest development in an ongoing series of trade disputes between China and the EU spanning multiple industries. Tensions have been rising since the EU imposed duties on Chinese-made electric vehicles (EVs), prompting China to initiate investigations into European pork and dairy imports. In June, the EU excluded Chinese companies from bidding on government contracts exceeding 5 million euros ($5.89 million). Brussels said the restrictions aimed to pressure Beijing into removing what it described as “significant and recurring legal and administrative barriers” preventing European firms from accessing China's procurement market. China reaffirms commitment to dialogue and cooperation following U.S. trade restrictions lift In response, China defended its latest actions, stating it was left with “no choice but to implement countermeasures.” “China has repeatedly conveyed its willingness to properly resolve differences with the EU through dialogue, consultation, and bilateral government procurement agreements,” said a spokesperson for China’s Ministry of Commerce. “Unfortunately, the EU has ignored China’s goodwill and sincerity and has persisted in imposing restrictive measures and constructing new protectionist barriers.” Source: Agency 

More than half of the world’s low-income countries are either already in or nearing a high risk of debt distress, the World Bank has warned, calling on global leaders to adopt “radical debt transparency” to avert future financial crises. In its latest report, Radical Debt Transparency, the Bank reveals that 54 percent of low-income countries face severe debt vulnerabilities, with many spending more on debt repayments than on essential sectors such as education, healthcare, and infrastructure combined. “Without urgent action, future debt crises will not only be the result of economic shocks, but also of undisclosed and misunderstood liabilities,” said Axel van Trotsenburg, World Bank Senior Managing Director, in a signed commentary accompanying the report. The report underscores that while past international efforts like the Heavily Indebted Poor Countries (HIPC) Initiative provided critical relief, today’s debt environment has grown significantly more complex.  An increasing share of sovereign borrowing now occurs off-budget, through opaque arrangements, collateral-backed loans, and deals with non-traditional lenders. Since 2020, the proportion of low-income countries publishing some form of debt data has risen from under 60 percent to more than 75 percent, the report notes. However, only one in four countries disclose loan-level data on new debt, raising concerns about the depth and consistency of current reporting standards. World Bank approves over $1 billion for projects in Lebanon, Syria and Iraq The World Bank is urging stronger national oversight and full public disclosure of lending terms.  It has also recommended leveraging technology to standardise debt-recording systems and enhance accountability, proposing the development of a joint digital platform for both borrowers and creditors. “Transparency is not a luxury—it’s a necessity,” said van Trotsenburg. “It rebuilds trust with investors and supports long-term growth and stability.” The report comes at a time when developing economies are grappling with shrinking access to affordable financing, further strained by global shocks such as commodity price volatility and climate-induced disasters. While the World Bank and International Monetary Fund have extended technical assistance and financial support to vulnerable nations, and the G20’s Common Framework offers a mechanism for debt resolution, experts believe these measures remain insufficient without more coordinated and comprehensive action. The report concludes by warning that debt crises—once largely reactive—must now be addressed proactively, with radical transparency serving as the first line of defence against yet another lost decade of development.  

Asian shares show mixed performances as Trump’s tariff deadline approaches; US markets hit new highs Asian equity markets ended Friday unevenly after U.S. stocks climbed to fresh record levels amid growing anticipation of President Donald Trump’s July 9 deadline for imposing tariffs. Japan’s benchmark Nikkei 225 dipped 0.6% to close at 39,762.20, reversing earlier gains, while South Korea’s KOSPI slipped 1.2% to 3,078.31. In Hong Kong, the Hang Seng lost 0.6%, settling at 23,914.44, whereas mainland China’s Shanghai Composite edged up 0.4% to 3,475.24. Australia’s S&P/ASX 200 ticked up 0.1% to 8,609.50, and India’s Sensex rose 0.1% to 83,288.73. “Asian markets crept into Friday like someone stepping into a dark alley, ever watchful—because although U.S. equities surged on a post-payroll rally, the vibe in Asia was much more cautious. The reason? That familiar jitters whenever Trump nears the tariff trigger,” wrote Stephen Innes, managing partner at SPI Asset Management. On Wall Street Thursday, a stronger-than-expected U.S. jobs report pushed the S&P 500 up 0.8%, marking its fourth all-time high in five trading days. The Dow Jones Industrial Average gained 344 points (0.8%), and the Nasdaq Composite climbed 1%. South Korean President says US trade deal uncertain as Trump’s deadline approaches Most of Trump’s proposed import levies remain on hold but are set to take effect next week unless he negotiates deals to suspend them. In commodities, U.S. crude oil dipped 19 cents to $68.81 per barrel, while Brent crude eased 30 cents to $68.50 per barrel. In currency markets, the U.S. dollar weakened to 144.48 Japanese yen from 144.92, and the euro inched up to $1.1771 from $1.1761. Source: Agency