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Walmart experienced a strong performance throughout 2024, but potential challenges loom in 2025, reports AP. The retail giant achieved another year of solid sales and profits, with its competitive pricing continuing to attract inflation-conscious shoppers. However, uncertainties in the economic landscape suggest difficulties ahead. Texas gunman in Walmart shooting gets 90 consecutive life sentences and may still face death penalty Walmart’s 2025 earnings forecast falls short of analysts’ expectations by as much as 27 cents per share, while its quarterly outlook is up to 7 cents below Wall Street projections. The company's sales forecast is also underwhelming, possibly signalling growing obstacles as consumer spending weakens and President Donald Trump's tariffs on China and other nations pose a threat to Walmart’s low-price strategy. Despite implementing measures to mitigate some tariff risks, Walmart remains vulnerable. Groceries, which constitute about 60% of its U.S. business, are largely unaffected by international trade policies. However, Walmart's stock plunged nearly 9% before Thursday’s market opening, dragging down other major retailers, including Target, which saw a 2% decline. As one of the first major U.S. retailers to release quarterly results, Walmart’s numbers provide insight into consumer sentiment, especially in light of new trade barriers that many economists fear could drive inflation higher. Over the past year, shoppers have prioritised essential purchases over discretionary items like electronics, furniture, and appliances, exercising greater caution due to rising costs for both credit and groceries. Walmart boosts outlook after a strong first quarter and rising online sales Walmart has thrived in this environment, leveraging its scale to maintain lower prices and gain market share, particularly among households earning over $100,000. Its e-commerce expansion and Walmart+ membership programme have also drawn wealthier customers. “We have momentum driven by our low prices, a growing assortment, and an eCommerce business focused on faster delivery times,” said CEO Doug McMillon. “We’re gaining market share, our top line is healthy, and our inventory is in great shape.” Nevertheless, the company may face heightened challenges as the new tariffs present greater economic risks compared to Trump’s first term. Economists warn that if Americans experience another wave of price increases, consumer spending—accounting for 70% of the U.S. economy—could decline broadly, impacting not just Walmart’s sales but the economy at large. Recent government data showed a sharp decline in January retail sales, partly due to cold weather, though the drop was larger than expected—the biggest in a year. While December sales were revised higher, it may suggest consumers are cutting back after holiday spending. Meanwhile, grocery prices, a persistent concern for American households, have continued to rise. Walmart, headquartered in Bentonville, Arkansas, reported quarterly earnings of $5.25 billion, or 65 cents per share, for the period ending Jan. 31, compared to $5.49 billion, or 68 cents per share, a year earlier. Adjusted earnings per share stood at 66 cents. Quarterly sales grew by 4.1% to reach $180.55 billion, surpassing analysts’ forecast of $180.07 billion, according to FactSet. Comparable sales for Walmart’s U.S. division—including online and physical stores open for at least a year—rose 4.6%, slightly below the 5.3% increase in the previous quarter. The company reported a 4.2% rise in the second quarter and 3.8% in the first quarter. Global e-commerce sales climbed 16% in the latest quarter, a slowdown from the 27% growth seen in the third quarter. 'Bodies drop' as Walmart manager kills 6 in Virginia attack For the first quarter, Walmart expects earnings per share between 57 and 58 cents, well below Wall Street’s 64-cent projection. For the full year, the company anticipates earnings per share of $2.50 to $2.60, falling short of the $2.77 analysts predicted. The retailer projects a 3% to 4% rise in quarterly sales, ranging between $166.35 billion and $167.97 billion, which could disappoint analysts who expected $167.05 billion. For the year, Walmart forecasts sales growth of 3% to 4%, reaching between $667.57 billion and $674.05 billion—significantly lower than analysts’ estimate of $708.72 billion, according to FactSet.

President Donald Trump said Wednesday he is considering buying used Boeing aircraft — perhaps from an overseas seller — to use as Air Force One when he's aboard, as he fumes over the U.S. plane-maker's delays in producing two specially modified ones for presidential use. Speaking to reporters aboard one of the two nearly 35-year-old Boeing 747-200 aircraft in current use, Trump said, “We’re looking at alternatives, because it’s taking Boeing too long.” “We may go and buy a plane,” Trump said, adding that he could then “convert it.” He later clarified that he was ruling out purchasing aircraft of Airbus, the European company that is the only other global supplier on large wide-body aircraft, but would consider a second-hand Boeing plane. “I would not consider Airbus. I could buy one from another country perhaps or get one from another country." Boeing has the contract to produce updated versions, based on the more modern Boeing 747-8, but delivery has been delayed while the aircraft maker has lost billions of dollars on the deal, which was negotiated by Trump during his first term in office. It's not the planes, rather the heavy modification to make them suitable for the requirements of presidential travel and the top-level security clearances required for those involved, that has added to the cost and delays. Trump already dropped a requirement for the new generation of planes, which will be known as the VC-25B, to be capable of air-to-air refueling, like the pair of existing VC-25As, which were designed during the Cold War. Guarded optimism in India as Trump, Modi outline plans to deepen defense partnership Other modifications include highly classified communications equipment suitable for the country's commander-in-chief, survivability enhancements for a range of contingencies, and self-contained air-stairs, allowing for their use in austere landing environments. Delivery initially was set for 2024, but has been pushed to some time in 2027 for the first plane and in 2028 — Trump’s final year in office — for the second, according to the U.S. Air Force. Trump on Saturday toured a newer Boeing 747-800 airplane to check out new hardware and technology features and highlight the aircraft maker’s delay in delivering updated versions of the Air Force One presidential aircraft, the White House said Saturday. Trump visited the 13-year-old private aircraft that had been owned by the Qatari royal family while it was parked at Palm Beach International Airport. The New York Times was first to report that Trump was considering purchasing and modifying used aircraft to serve as new presidential aircraft.

Asia’s stock markets displayed mixed performances on Wednesday, with Chinese technology stocks retreating after a brief rally, reports AP. The Hang Seng Index declined by 0.27% to 22,915.70, whereas the Shanghai Composite climbed 0.81% to 3,351.54. Japan’s Nikkei 225 dipped 0.27% to 39,164.61, following U.S. President Donald Trump's warning of a 25% tariff on car imports, a move that could negatively affect Japan’s economy. UK inflation hits 10-month high Meanwhile, South Korea’s KOSPI advanced 1.7% to 2,671.52, while Australia’s S&P/ASX 200 dropped 0.73% to 8,419.20. China’s technology stocks tumbled on Wednesday following a short-lived surge earlier in the week. Alibaba’s Hong Kong-listed shares declined by 1.58%, while Baidu dropped 2.33% after reporting a 2% year-on-year revenue decrease for the fourth quarter amid intensifying artificial intelligence competition in China. Tencent, a leading video game company, saw its stock fall by 1.37%, while online services giant Meituan lost 3.24%. “Hong Kong and mainland China led the sell-off, letting some air out of the risk-on sentiment that had driven Asia’s market rebound,” noted Stephen Innes, managing partner at SPI Asset Management. “Japanese stocks also followed the downturn, with automakers Toyota and Honda hit hard after Trump issued fresh threats—this time targeting autos, semiconductors, and pharmaceuticals with potential 25% tariffs,” he added. The drop in Chinese tech shares occurred despite U.S. markets edging higher, with the S&P 500 setting a new record on Tuesday. NBR to launch AEO next week to fast track int'l businesses The benchmark for Wall Street’s performance gained 0.2%, surpassing its previous all-time closing high from last month. The Dow Jones Industrial Average rose by 10 points, or under 0.1%, while the Nasdaq composite increased by 0.1%. In energy markets, U.S. benchmark crude climbed 43 cents to $72.26 per barrel, while Brent crude, the global standard, increased by 40 cents to $76.24 per barrel. In currency trading, the U.S. dollar slipped to 151.71 Japanese yen from 152.01 yen, while the euro rose to $1.0455 from $1.0446.

Inflation in the UK climbed to a 10-month high in January, according to official data released on Wednesday, a development that is likely to temper expectations of swift interest rate cuts from the Bank of England, reports AP. The Office for National Statistics reported that inflation, as measured by the consumer prices index, increased to 3% in the year to January, up from 2.5% the previous month. NBR to launch AEO next week to fast track int'l businesses This rise, which pushed inflation further beyond the bank’s 2% target, was primarily driven by higher airfares, food costs, and private school fees following the new Labour government’s decision to introduce a sales tax. While economists had projected an increase to 2.8%, the magnitude of the surge has been unexpectedly high and is likely to raise concerns among central bank policymakers, particularly as they continue to express apprehensions about the UK's sluggish economic growth. Earlier this month, the bank reduced its main interest rate by a quarter of a percentage point to 4.50%—its third cut in six months—after slashing its 2025 growth forecast for the UK to 0.75%. If growth remains weak, it will be a significant setback for the UK’s new Labour government, which has prioritised economic expansion as a means of improving living standards and generating revenue for underfunded public services. As growth remains elusive, the party’s popularity has declined sharply since its election victory in July. The government will undoubtedly hope that the central bank provides support by further reducing interest rates, as this would lower mortgage costs and make borrowing more affordable, albeit at the expense of reduced returns for savers. DSE opens lower, CSE sees early gains Most economists expect inflation to rise further in the coming months due to increasing domestic energy bills, before beginning to decline in the latter half of the year. This should provide policymakers with scope to cut interest rates again—though possibly fewer times than previously anticipated. “A rate cut in March now seems highly unlikely, with the bank maintaining its cautious approach to easing for the time being,” said Luke Bartholomew, deputy chief economist at abrdn, formerly Aberdeen Asset Management. “However, whether the pace of rate cuts accelerates later in the year will depend on inflationary pressures returning towards 2%.”

 Yoshiko Abe is about to turn 89, but that hasn't stopped her from going to the gym every day and trying the free-of-charge makeup course at her housing complex. “It was really helpful,” she said, all smiles and glowing after putting on foundation and pink lipstick, something she hadn’t done in years. Japan is the fastest-aging society in the world, where more than a quarter of its population is 65 and older, at 36 million people. In about a decade, the ratio will be one in three. No wonder the young-at-heart, like Abe, is a growing target for Japan Inc. The market for older people is estimated to grow to more than 100 trillion yen ($650 billion) in size this year, according to a study by Mizuho Bank. And that business isn’t just about remedies for sicknesses and old folks’ homes but taps into solid consumerism. The growth of artificial intelligence and robotics also offers promise for such services and gadgetry. Australian cenbank cuts benchmark interest rate for first time since Oct 2020 Akira Shimizu, professor of business at Keio University, calls them “cool grandpas and cute grannies” who remain sensitive to trends, including the latest luxury and health products. “They think about the clothing and makeup that express their style,” he said. From luxury cruises and “oldies” rock concerts, companies are leveraging the fact that older people these days remain active, go out with friends and on dates, so they want to dress up and look good, said Shimizu. Maintaining one’s looks is good physical exercise because it takes hand agility to open cosmetics tubes and draw eyebrows nicely, and massaging the face gets one's saliva glands going, according to Miwa Hiraku, the makeover class instructor from the Japanese cosmetics company Shiseido. Shiseido Co., which started out as a pharmacy in 1872, said that makeup is not just good for your physical well-being but also your soul. The company has been holding free makeup courses for older people across the country. “Putting on makeup works as a switch to turn on your energy at the start of your day,” said Hiraku, who vows to wear makeup even at 100. “It’s not just about looking beautiful. It’s about living a long healthy life,” she said. Yoshihiko Hotta, 85, the only man in the class of about 30 people, didn't try the rouge but happily put on the hand cream and went along with all the exercise routines. Asian stocks rise as China's tech shares see gains While acknowledging he felt some effects of aging like sore legs, he declared with conviction: “I don't think age is relevant.”

Australia’s central bank on Tuesday reduced its benchmark interest rate for the first time since October 2020 as the nation’s inflation cools. The Reserve Bank of Australia reduced the cash rate by a quarter percentage point from 4.35 per cent to 4.1 per cent at its first board meeting for the year. The cut was widely anticipated after inflation rose only 0.2 per cent in the December quarter and 2.4 per cent for calendar 2024. Annual inflation peaked at 7.8 per cent two years earlier. The bank manipulates interest rates to keep inflation within a target band of between 2 per cent and 3 per cent. “Inflation has fallen substantially since the peak in 2022, as higher interest rates have been working to bring aggregate demand and supply closer towards balance,” the board said in a statement. Bank Governor Michele Bullock later advised against believing economic forecasts that several more rate cuts were expected this year. The board will next consider changing interest rates at its meeting on April 1. “Some other central banks have cut interest rates quite sharply over the past year, but we have taken a different strategy to most,” Bullock told reporters. “Our policy rate was not raised as much as many countries overseas. We judged that while inflation expectations remained anchored, we could take a bit longer to bring inflation back to the target band, but we could keep unemployment lower,” she added. Unemployment in Australia remained at near-record low levels of 4 per cent in December, up from 3.9 per cent in November. Bullock said US plans to increase tariffs on trading partners had the potential to be bad for economic activity around the world. “The tariff threats and what’s going on overseas is very uncertain and probably even worse, it’s unpredictable,” Bullock said. Asian stocks rise as China's tech shares see gains The rate shift is a welcome development for Prime Minister Anthony Albanese’s center-left Labor Party government which will seek reelection at elections due by May 17. Treasurer Jim Chalmers welcomed the independent board's decision. “This is the rate relief Australians need and deserve,” Chalmers said in a statement. “It won't solve every problem in our economy or in household budgets but it will help." Chalmers said his government had curbed inflation without the negative consequences experienced in other countries including of high unemployment, a shrinking economy and recession. Twelve of the last 13 rate increases have taken place since the government was elected for its first three-year term on May 21, 2022. The cycle began in the final days of the previous government’s tenure when the rate rose from a record low 0.1 per cent to 0.35 per cent on May 4, 2022. The high cost of living and a shortage of housing around Australia are expected to be major issues in the upcoming election campaign. The central bank had held the cash rate at 4.35 per cent since November 2023. That was the highest rate since it fell from 4.5 per cent to 4.25 per cent in December 2011.

Asian stocks mostly saw gains on Tuesday, bolstered by a strong rally in Chinese tech stocks following a meeting between Chinese President Xi Jinping and entrepreneurs, which is being interpreted as a show of support for the tech sector, reports AP. In Hong Kong, the Hang Seng climbed by 1.64% to 22,986.88, while the Shanghai Composite rose by 0.15% to 3,360.95. Japan’s Nikkei 225 increased by 0.39% to 39,296.11, following Japan’s economic growth surpassing forecasts for the fourth quarter. However, Australia’s S&P/ASX 200 dipped by 0.53% to 8,491.70, and South Korea’s Kospi gained 0.43% to 2,621.73. Fixing Germany's economy is a critical task for the country's next government Chinese tech stocks saw a significant boost on Tuesday. Alibaba, an e-commerce giant, and Xiaomi, a smartphone manufacturer, both saw their share prices increase by more than 4%. Similarly, Tencent, a video game company, and Meituan, an online services provider, also experienced gains. President Xi Jinping’s meeting with key entrepreneurs, including Alibaba’s Jack Ma, is viewed as a gesture of reassurance and stability following the previous crackdown on the technology sector in China. “The symbolism of Xi’s rare meeting with tech leaders is clear. This isn’t just another policy gathering; it’s a deliberate move reflecting Beijing’s growing concerns about economic momentum and its role in the global tech race,” said Stephen Innes, managing partner at SPI Asset Management. “For investors, the message is unmistakable: China’s leadership is once again backing the tech industry. Whether this leads to long-term policy changes or is simply a short-term confidence boost remains uncertain,” he added. All eyes are now on whether Chinese and Hong Kong stock markets will maintain their positive momentum, with Chinese stocks outperforming those of Japan, the U.S., and India this year. A report from BofA Securities highlighted key factors driving China’s stock market, including an unexpectedly improved U.S.-China relationship, with Trump imposing only a 10% tariff increase so far, and the rise of DeepSeek as a competitor to leading U.S. artificial intelligence models. Meanwhile, global markets are closely watching the potential impact of tariffs announced by Trump. However, analysts believe he may ultimately avoid triggering a global trade war. Trump’s most recent tariff measure will not take effect for several weeks, allowing time for negotiations with Washington. US plans to cut Iran’s oil exports by over 90% in renewed pressure campaign In energy trading, U.S. crude oil gained 54 cents to $71.25 a barrel, while Brent crude rose by two cents to $75.24 per barrel. In currency trading, the U.S. dollar strengthened against the Japanese yen, rising to 151.91 yen from 151.51 yen. The euro traded at $1.0465, down from $1.0484.

Germany needs a new business model. The old one, fueled by cheap natural gas from Russia and lucrative exports to China, is broken, leaving Europe's biggest economy mired in stagnation and angst about the future. Delivering that fresh growth strategy is going to be the biggest challenge for the government that takes office after a national election set for Feb. 23, seven months ahead of schedule. The nation that became known for the quality of its products has not seen real economic growth for five years. Multiple factors conspired to take Germany from industrial powerhouse to post-pandemic straggler: too much bureaucracy, a shortage of skilled workers, slow deployment of technology and a lack of clear direction from the outgoing coalition government are among them. Rising competition from China and high energy prices due to Russia's war in Ukraine were additional hits. “We really need a more company- and enterprise-friendly politics," said Klaus Geissdoerfer, CEO of industrial fan manufacturer EBM-Papst. “We have bright talent in Germany. We have good companies, but at the moment we don’t have the awareness on the political level.” Business criticism gets louder as election nears With 2.5 billion euros ($2.6 billion) in annual revenue and plants on three continents, EBM-Papst describes itself as the global leader in its field. The company reported last year that it was “suffering in Germany in particular” and experienced a 4.1% revenue decline in its home market. Geissdoerfer said EBM-Papst’s heating technology division lost 18.7% of its sales through a clumsily handled push to get property owners to replace gas furnaces with less polluting electric heat pumps. The requirements of the Building Energy Act put forward by Chancellor Olaf Scholz’ three-party coalition were so confusing, people put off the upgrades to their heating systems or rushed to buy new gas devices before the law took effect, he said. That sapped demand for the ultra-quiet heat pump fans EBM-Papst makes. Consumers wondered, “What is the right technology for my house?” Geissdoerfer said. “And so everybody said, 'If I don't have to, I better wait.'” Geissdoerfer made a complaint heard across industry: Germany's bureaucracy is excessive. A 2023 law that requires public and private entities to combat climate change by reducing their energy use means EBM-Papst must assign employees to detail what the company is doing to comply, he said. Germany extends border controls for six more months “So now, instead of implementing measures, they write and report,” the CEO said, adding that the documentation work is a poor use of time at a company whose core business is energy-saving equipment. “I really hope with the new government we can get this solved, because at the moment it’s too much.” EBM-Papst is moving in the direction where economists say Germany as a whole should put its industrial resources: into green and digital technology. The company, headquartered in Mulfingen, a town of 3,700 residents in rural southwest Germany, is equipping energy-hungry artificial intelligence data centers with efficient cooling systems for their servers. It also is working on incorporating AI features to help tech companies optimize their power use and to predict when equipment needs to be replaced. In the meantime, EBM-Papst is coping with Germany’s economic malaise by shifting its investment focus to Asia and the United States. The company now supplies U.S. customers, for instance, from plants in Farmington, Connecticut,and Telford, Tennessee. Its moves to localize production abroad predate the coronavirus pandemic but give EBM-Papst a shield against any new import taxes imposed by U.S. President Donald Trump. Ties to China and Russia put Germany in a bind On top of the homegrown issues, international relations have dealt another blow. Russia cut off most of the country's natural gas supplies over the German government's wartime support for Ukraine. Electricity prices, a key cost for industry, have risen to 2 1/2 times higher than in the U.S. and China. Metalworking firm Mecanindus-Vogelsang Group, which makes precision parts for automakers and other manufacturers, says it pays twice as much per kilowatt hour for the electricity its German plants use as it does for its U.S. sites in Mt. Sterling, Kentucky, and Lakewood, New Jersey. That's 100,000 euros in added costs and “a gigantic competitive disadvantage" CEO Ulrich Flatken said. “To avoid deindustrialization, which is already taking place, we urgently need internationally competitive energy prices,” Flatken said. Another shock came from China, which throughout the 2010s served as a lucrative market for German-made machinery and automobiles. Once Chinese companies started making those same products, backed by government subsidies, German exports suffered. Germany's economy shrinks again Germany's economy contracted in each of the last two years. By the end of 2024, it was only 0.3% bigger than it was in 2019, before the pandemic. The U.S. economy grew by 11.4% during over the same period, while China's expanded by 25.8%, according to Germany's Federal Statistical Office. Complacency and depression Marcel Fratzscher, president of the German Institute for Economic Research, thinks complacency set in during the boom years of exports to China. German companies weren’t quick enough to respond to technological trends, such as the move to electric cars, he said. “They enjoyed the success of the 2010s and they have been too slow in understanding that they need to change and adapt,” Fratzscher said. As the economic woes drag on, “mental depression” has set in, he said. “The pessimism is enormous among companies and citizens, and that’s an important explanation why companies are not investing.” Many business executives and economists argue that Germany's next government should work to loosen constitutional limits on debt so it can increase public spending on infrastructure and education. Fratzscher wonders if political leaders, like the economy, will falter in adopting new ways of doing things. “For the past 75 years, Germany has been built very much on consensus, stability oriented, lots of checks and balances in the political system, and that makes rapid change very difficult,” he said. “We need to change the mindset, to understand we need to be much faster on economic transformations.”

The United States has announced plans to slash Iran’s oil exports by more than 90 per cent as part of former President Donald Trump’s renewed “maximum pressure” campaign, Treasury Secretary Scott Bessent stated on Friday. Speaking to Fox Business, Bessent said, “We are committed to bringing the Iranians back to 100,000 barrels-a-day of oil exports,” referencing the level seen during Mr Trump’s first term in office. Currently, Iran is exporting between 1.5 million and 1.6 million barrels per day, according to Bessent. Last week, Mr Trump signed a memorandum directing the Treasury Department to impose “maximum economic pressure” on Tehran to prevent it from acquiring nuclear weapons. The order echoes the policy from his first administration, which saw Iran’s oil exports plummet from approximately three million barrels per day in 2017 to around 400,000 in 2019. During his initial term, Mr Trump withdrew from the 2015 Joint Comprehensive Plan of Action (JCPOA), arguing that the agreement failed to prevent Tehran from developing nuclear technology. Sanctions lifted under the deal were subsequently reimposed as part of Washington’s strategy to cripple Iran’s economy. Economic Pressure and Sanctions Bessent underscored the US’s capacity to enforce maximum economic pressure on Iran, suggesting that a return to “Trump 1.0 levels” of oil exports would lead to “severe economic distress” for the country. “Their economy is quite fragile right now,” he said, citing high inflation and a “gigantic” budget deficit. He further claimed that revenue from Iran’s oil exports was being used to fund “terrorist activity.” Modi says US and India target $500 billion bilateral trade by 2030 In line with Mr Trump’s directive, the Treasury Department has already imposed sanctions on three oil tankers, and Bessent signalled that further measures could be taken against Russian energy exports if instructed by the administration. The executive order also directed the State Department to “modify or rescind existing sanctions waivers” and coordinate with Treasury in implementing the maximum pressure policy. China and India in the Spotlight Experts warn that reducing Iran’s oil exports to near-zero levels would necessitate targeting intermediaries, as well as major buyers such as China and India. “The Chinese, perhaps Indians, are buying the sanctioned Iranian oil and that is unacceptable,” Bessent stated. While the US remains steadfast in its approach, Iranian Foreign Minister Abbas Araghchi dismissed the prospect of negotiations under such conditions. “Negotiation cannot be carried out from a weak stance, as it will no longer be considered negotiation but a kind of surrender. We never go to the negotiating table this way,” Iranian state media quoted him as saying this week. Opec’s Position Despite Washington’s aggressive stance, analysts suggest that the Organisation of the Petroleum Exporting Countries (Opec) is unlikely to alter its voluntary production cuts due to the US campaign. With Iran’s crude oil production recorded at 3.28 million barrels per day in January 2025, Opec is expected to have sufficient capacity to absorb any supply reductions resulting from the sanctions. China establishes over 30,000 smart factories As tensions escalate, the effectiveness of Mr Trump’s renewed maximum pressure strategy remains to be seen, particularly amid ongoing geopolitical shifts and Iran’s determined resistance to US-imposed economic constraints. Source: Agencies

New Delhi and Washington will work to more than double bilateral trade to $500 billion by 2030, Indian Prime Minister Narendra Modi said at a joint press conference with U.S. President Donald Trump on Thursday. Speaking at the conclusion of the two leaders’ meeting in Washington, Modi also said that “Our teams will work on concluding very soon, a mutually beneficial trade agreement.” Trump acknowledged India’s recent move to reduce tariffs on select imports and said he would begin talks on disparities on trade and hoped to reach an agreement. The remarks came hours after Trump signed a presidential memorandum outlining his plan to impose “reciprocal tariffs” on foreign nations, including India. The U.S. would simply charge the same tariff rates that India charges, Trump said, while the trade deficit with India could be addressed with the sale of oil and gas. India’s simple average tariff on countries with the most-favored-nation status stands at 17%, compared with the U.S. that levies 3.3%. The U.S. enjoys MFN status with most major economies. U.S. total goods trade with India is estimated at $129 billion in 2024, according to the Office of the U.S. Trade Representative. India’s surplus with the U.S., its second-largest trading partner, reached $45.7 billion last year. The U.S. will increase its military sales to India starting this year and ultimately provide F-35 fighter jets to the Asian ally, Trump said at the briefing, in an effort to confront what he called “the threat of radical Islamic terrorism.” India is the world’s biggest defense equipment importer. Honda, Nissan and Mitsubishi drop their talks on business integration Modi said India and the U.S. would also work together on developing artificial intelligence and semiconductors while focusing on establishing strong supply chains for strategic minerals. The lofty target of $500 billion in trade could be achievable, Raghuram Rajan, professor of finance at University of Chicago Booth School of Business and former Reserve Bank of India governor, told CNBC’s “Squawk Box Asia.” Besides shifting away from Russia — India’s key defense supplier — toward the U.S. for arms, India could also increase its purchases of liquified natural gas from American manufacturers, Rajan added. The Trump-Modi meeting had the threat of U.S. tariffs looming large. “We are, right now, a reciprocal nation... We’re going to have whatever India charges, we’re charging them. Whatever another country charges, we’re charging them. So it’s called reciprocal, which I think is a very fair way,” the U.S. president said at the press briefing. The president said that the reciprocal tariffs will not take effect immediately as his administration works on determining the appropriate tariff levels for each affected country. Trump has already slapped tariffs on China, Canada and Mexico as well as global tariffs on imports of steel and aluminum. Trump’s tariffs on Canada and Mexico are currently on pause after both countries pledged to crack down on illegal drug trafficking at their respective borders with the U.S. House Republicans unveil blueprint to extend $4.5 trillion in tax cuts and lift the debt ceiling Despite the encouraging tones from the meeting, signs of friction remain in the U.S.-India relation, said Daniel Balazs, a research fellow at the S. Rajaratnam School of International Studies, such as the illegal immigration issue and India’s close ties with Russia. “The latter, in particular, is unlikely to go away anytime soon and will probably remain a sore point between the two sides,” he said.