United News of Bangladesh

U.S. President Donald Trump on Tuesday said he intends to impose tariffs of over 10% on goods from smaller nations, including countries in Africa and the Caribbean. “We’ll probably set one tariff for all of them,” Trump told reporters, adding that it could be “a little over 10% tariff” on imports from at least 100 countries. Commerce Secretary Howard Lutnick clarified that the targeted nations would primarily be in Africa and the Caribbean — regions that conduct relatively modest trade with the United States. Lutnick noted that such tariffs would have limited impact on addressing the broader U.S. trade imbalances. Earlier this month, Trump began issuing formal notifications to approximately two dozen countries and the European Union, outlining the tariff rates set to take effect on August 1. These rates align closely with the ones announced on April 2, which triggered market volatility and led Trump to offer a 90-day negotiation period that ended on July 9. US manufacturing struggles persist despite subsidies and tariffs In addition, the president said he would “probably” introduce tariffs on pharmaceutical drugs by the end of the month. He added that the administration plans to begin with a lower rate, giving companies a year to establish domestic manufacturing before imposing higher import taxes. Trump indicated that computer chips would also be subjected to a similar phased tariff approach.

U.S. President Donald Trump on Saturday announced 30% tariffs on imports from the European Union and Mexico, effective August 1, targeting two of the country's largest trade partners. The announcement came through letters Trump posted on his social media account, where he outlined the reasoning behind the move. In his message to Mexico’s president, Trump acknowledged the country’s efforts in helping to curb undocumented migration and the flow of fentanyl into the U.S. However, he criticized Mexico for not doing enough to prevent the region from becoming what he called a “Narco-Trafficking Playground.” In a separate letter addressed to European Union leaders, Trump described the U.S. trade deficit as a threat to national security. “We have had years to discuss our Trading Relationship with The European Union, and we have concluded we must move away from these long-term, large, and persistent, Trade Deficits, engendered by your Tariff, and Non-Tariff, Policies, and Trade Barriers,” Trump wrote. “Our relationship has been, unfortunately, far from Reciprocal.” Judge blocks Trump administration from random immigration raids, arrests in California The move is part of a broader campaign effort by Trump, who has been ramping up announcements of new tariffs as a central theme of his 2024 re-election bid. He claims these measures will restore fairness to the U.S. economy, which he says has been exploited by foreign powers for decades. By introducing these reciprocal tariffs, Trump is effectively challenging the global trade framework established under the Uruguay Round of negotiations, which set tariff rates under a “most favored nation” principle — ensuring no country was treated less favorably than others. With Saturday’s letters, Trump has now imposed tariff conditions on 24 countries and the 27-member European Union.

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.

Brazil is hosting a two-day summit of the BRICS bloc of developing economies, where topics like Israel’s attack on Iran, the humanitarian crisis in Gaza, and U.S. President Donald Trump’s trade tariffs are expected to be addressed cautiously. Analysts say the lack of unity within the expanded BRICS, which doubled its membership last year, could limit its ability to emerge as a powerful alternative in global affairs. They also believe the summit’s moderate agenda reflects an effort to avoid drawing unwanted attention from Trump’s administration. Brazilian President Luiz Inácio Lula da Silva has placed issues such as artificial intelligence and climate change at the center of the summit, though several key leaders are absent. In his opening speech on Sunday, Lula warned, “We are witnessing the unparalleled collapse of multilateralism,” adding that the meeting is taking place “in the most adverse global scenario” of all four times Brazil has hosted the summit. He called on BRICS nations to promote peace and mediate conflicts. “If international governance does not reflect the new multipolar reality of the 21st century, it is up to the BRICS to contribute to its renovation,” Lula said. Notably absent from the summit is China’s President Xi Jinping, marking the first BRICS summit he has missed since taking power in 2012. Russian President Vladimir Putin is also absent but will join via videoconference, avoiding travel due to an international arrest warrant related to the invasion of Ukraine. Iran’s President Masoud Pezeshkian and Egypt’s Abdel-Fattah el-Sissi are also missing from the gathering in Rio de Janeiro. Three joint statements expected This year’s restrained approach marks a sharp contrast with last year’s summit in Kazan, Russia, where the Kremlin pushed to develop alternatives to U.S.-dominated financial systems to bypass Western sanctions following the Ukraine invasion. A source familiar with the summit’s negotiations said some members are pushing for stronger language regarding Gaza and Israel’s attack on Iran. The source requested anonymity as they were not authorized to discuss the talks publicly. “Brazil wants to keep the summit as technical as possible,” said Oliver Stuenkel, a professor at the Getulio Vargas Foundation think tank. Observers now expect only a vague final declaration on Russia’s war in Ukraine and other Middle East conflicts. According to Stuenkel, the absence of Putin and Xi, who have advocated for a stronger anti-Western stance, makes it easier for Brazil and India to steer the summit toward non-alignment. A Brazilian government official told The Associated Press that the summit is expected to produce three joint statements and a final declaration, “all of which less bounded by current geopolitical tensions.” The official spoke anonymously as they were not authorized to speak publicly. João Alfredo Nyegray, a geopolitics professor at the Pontifical Catholic University in Parana, noted that the BRICS summit could have presented an alternative to global instability but is unlikely to do so. “The withdrawal of Egypt’s President Abdel Fattah al-Sisi and the uncertainty about representation from Iran, Saudi Arabia, and the UAE confirm the difficulty for the BRICS to establish themselves as a cohesive global leadership pole,” Nyegray said. “This moment demands high-level articulation, but we are actually seeing dispersion.” Turkey sends firefighting planes to Syria as raging wildfires devastate border regions Avoiding Trump’s tariffs Brazil, which currently chairs the bloc, has set six strategic priorities: global healthcare cooperation; trade, investment, and finance; climate change; governance for artificial intelligence; peace and security; and institutional development. The country has opted to focus on less controversial areas, such as strengthening trade and health cooperation, especially after Trump’s return to the White House, said Ana Garcia, a professor at the Federal Rural University of Rio de Janeiro. “Brazil wants the least amount of damage possible and to avoid drawing the attention of the Trump administration to prevent any type of risk to the Brazilian economy,” Garcia explained. While Lula on Sunday called for reforming Western-led global institutions, a central policy for the bloc, Brazil is eager to avoid becoming a target for Trump’s tariffs — a situation it has so far mostly avoided. Trump has warned he would impose 100% tariffs against the bloc if it takes steps to undermine the U.S. dollar. ‘Best opportunity for emerging countries’ Founded by Brazil, Russia, India, China, and South Africa, the BRICS group expanded last year to include Indonesia, Iran, Egypt, Ethiopia, and the United Arab Emirates. The bloc also created a new category for 10 “strategic partner” countries, including Belarus, Cuba, and Vietnam. With this rapid expansion, Brazil has placed institutional development on the summit agenda to better integrate new members and improve cohesion. Despite the absence of key leaders, the summit remains important for emerging economies, especially amid the instability fueled by Trump’s tariff policies, said Bruce Scheidl, a researcher at the University of São Paulo’s BRICS study group. “The summit offers the best opportunity for emerging countries to respond, in the sense of seeking alternatives and diversifying their economic partnerships,” Scheidl said. For Lula, the summit provides a temporary respite from domestic political challenges, including falling approval ratings and clashes with Congress. It also gives Brazil the opportunity to advance climate negotiations ahead of COP 30, the United Nations climate conference scheduled for November in Belém, in the heart of the Amazon.

Markets on Wall Street and in Europe declined rapidly early Friday morning after President Donald Trump posted a pair of tariff threats on social media, one aimed at Apple and the other at the European Union. Futures for the S&P 500 and the Dow Jones Industrial Average slid 1.5% and Nasdaq futures tumbled 1.7% before the bell. Oil prices fell and Treasury yields sank as well, AP reports. Markets took a sharp turn downward after Trump posted on social media that he wants “a straight 50% Tariff” on the EU beginning June 1 because representatives of the bloc have been difficult in negotiations. European markets fell nearly immediately after Trump's post on his own Truth Social site. Germany’s DAX quickly swung to a 1.9% loss, while the CAC 40 in Paris fell 2.4%. London's FTSE 100 shed 1.1%. Global shares slip as investors register their worries about U.S. debt Trump has dialled back or paused many of his tariff threats in recent weeks, bringing some peace to markets which had been swinging wildly in both directions for weeks as Trump fired off tariff threats. Shares of Apple were down 3.8% in morning trading after Trump threatened to put a 25% tariff on Apple products unless the company moves its iPhone manufacturing to the United States. The threat delivered over social media could dramatically increase the price of iPhones, potentially hurting sales and the profits of one of America’s leading technology companies. US benchmark crude oil tumbled $1.07, or 1.3%, to $60.13 per barrel while Brent crude, the international standard, fell 99 cents to $63.45 per barrel.

Japan’s Finance Minister Katsunobu Kato has hinted that the country’s substantial holdings of US Treasury could serve as leverage in ongoing tariff negotiations with the Trump administration. “It does exist as a card, but I think whether we choose to use it or not would be a separate decision,” Kato stated during a televised interview on national broadcaster TV Tokyo on Friday, AP reports. While Kato refrained from providing further details or suggesting Japan intends to sell its holdings, the remark signals a potential shift in Japan’s strategy as tensions over tariffs grow. Previously, Kato and other Japanese officials had dismissed the possibility of using Treasury holdings as a negotiation tool. Japan is currently the largest foreign holder of US government debt, owning approximately $1.13 trillion as of late February. China, which is also engaged in a trade standoff with the United States, ranks second. The $10 billion India-Pakistan trade hidden from official records Kato emphasised that various elements would be considered in negotiations with President Donald Trump, hinting that Japan’s continued investment in US bonds could be used to gain favourable terms. The Trump administration has disrupted long-standing US trade policies, including with allies such as Japan, by imposing steep tariffs on a broad range of imported goods. A new round of US tariffs — 25% on vehicles and auto parts, and a 10% baseline tariff — is expected to take effect soon, posing a threat to Japan’s slowing economy. A delegation of Japanese officials visited Washington this week for discussions aimed at averting the new tariffs.

General Motors is lowering its profit expectations for the year as the carmaker braces for the potential impact from auto tariffs being rolled out by the US. GM announced early this week that it was reassessing its expectations for 2025 due to tariffs. The company said at the time that its initial full-year financial outlook didn’t contemplate their potential impact, reports AP. On Thursday the automaker said that it now foresees full-year adjusted earnings before interest and taxes in a range of $10 billion to $12.5 billion. The guidance includes a current tariff exposure of $4 billion to $5 billion. GM previously predicted 2025 adjusted EBIT between $13.7 billion and $15.7 billion. The revised forecast comes after President Donald Trump signed executive orders Tuesday to relax some of his 25% tariffs on automobiles and auto parts, a significant reversal as the import taxes threatened to hurt domestic manufacturers. Tariffs, oil prices and other uncertainties weighing down Mideast economies, IMF says Automakers and independent analyses have indicated that the tariffs could raise prices, reduce sales and make US production less competitive worldwide. Trump portrayed the changes as a bridge toward automakers moving more production into the United States. Still, it remains unclear what impact Trump’s broader tariffs will have on the US economy and auto sales. Most economists say the tariffs — which could ultimately hit most imports — would raise prices and slow economic growth, possibly hurting auto sales despite the relief that the administration intends to offer on its previous policies. In a letter to shareholders on Thursday, General Motors CEO Mary Barra said that the automaker looks forward to maintaining its strong dialogue with the Trump administration on trade and other evolving policies. “As you know, there are ongoing discussions with key trade partners that may also have an impact,” she said. “We will continue to be nimble and disciplined and update you as we know more.” Shares of GM climbed more than 2% before the opening bell.

A closely watched inflation gauge cooled last month in a sign that prices were steadily easing before most of President Donald Trump’s tariffs were implemented. At the same time, consumers accelerated their spending, particularly on cars, likely in an effort to get ahead of the duties. Wednesday’s report from the Commerce Department showed that consumer prices rose just 2.3% in March from a year earlier, down from 2.5% in February. Excluding the volatile food and energy categories, core prices rose 2.6% compared with a year ago, below February’s 2.8%. Economists track core prices because they typically provide a better read on where inflation is headed. The slowdown in inflation could be a temporary respite until the widespread duties imposed by Trump begin to push up prices in many categories. Economists forecast that inflation could reverse its recent decline and reach 3% or higher by the end of this year. Wednesday’s report also showed that consumer spending increased 0.7% from February to March, a healthy gain. Much of the increase appeared to be driven by efforts to get ahead of duties, such as Trump's 25% duty on imported cars, which took effect April 3. Spending on autos surged 8.1% in March, the government said. But spending on restaurants and hotels also jumped after falling in February, a sign Americans are still willing to splurge a little on travel and dining out. Car sales spiked last month as consumers and businesses accelerated acquisitions to get ahead of tariffs. That means auto sales may fade in the coming months because those assets have already been secured. Earlier Wednesday, the government reported that consumer spending slowed in the first three months of the year, compared with last year’s final quarter, as bad weather depressed shopping and Americans took a breather after healthy spending over the winter holidays. The nation’s economy actually shrank 0.3% in the January-March quarter as imports surged as companies sought to get ahead of Trump’s tariffs. Pakistan warns of imminent Indian Military Strike amid rising tensions Trump benefited in last year’s election from broad dissatisfaction among voters about the steep rise in prices that began in 2021 and that, on average, pushed prices up about 25% by the middle of last year. Grocery costs shot up nearly 30%. As a candidate, Trump said he would immediately lower prices if elected. Yet the president has slapped 25% duties on steel and aluminum, as well as cars, and a 10% tariff on nearly all other imports. And China, the United States’ third-largest trading partner, now faces a 145% duty on its exports. The inflation-fighters at the Federal Reserve target a 2% inflation rate and pay close attention to Wednesday’s inflation gauge, known as the personal consumption expenditures price index. The better-known consumer price index was released earlier this month and also showed a steady decline. Trump has pushed the Fed to cut its key short-term interest rate because inflation has cooled. But Fed Chair Jerome Powell has underscored that the central bank is likely to remain on the sidelines as officials gauge how tariffs will impact the economy. The Fed isn’t expected to lower its rate at its policy meeting next week.

Bernard Arnault, chairman and CEO of French luxury conglomerate LVMH, called on Thursday for a free trade zone between the European Union and the United States and said that unresolved trade tensions could seriously hurt European industries. His remarks, in the wake of the tariffs announced by President Donald Trump, appeared to echo a similar call by Elon Musk on April 5 for a zero-tariff zone between the U.S. and EU. The EU has long pushed for a “zero-for-zero” trade agreement — with both sides dropping tariffs — but Trump has rejected the offer. Speaking at LVMH’s annual shareholder meeting, Arnault said European leaders should negotiate “cleverly” with the U.S. administration and that national governments should take a more prominent role instead of than leaving negotiations solely in the hands of Brussels, the center of EU’s “bureaucratic power.” Trump joins tariff talks with Japan as US seeks deals amid trade wars France’s LVMH has for decades been the world’s dominant luxury group — known for products such as Moët & Chandon Champagne, Hennessy Cognac, Louis Vuitton handbags and Dior perfumes — but this week lost its title as the world’s largest luxury company to rival Hermès. “Europe is not run by a political power, but by a bureaucratic power that spends its time issuing regulations that are unfortunately imposed on all member states and that penalize our business sectors,” the 76-year-old CEO said. The European Commission, the EU’s executive branch, negotiates trade deals on behalf of all 27 member states. The bloc is the largest trading entity in the world. LVMH shares fell 7.8% earlier this week, following an unexpected drop in first-quarter sales. Arnault said the company may be forced to expand U.S. operations. "We would be forced to increase our American production to avoid tariffs if Europe failed to negotiate with intelligence,” he said. In 2019, LVMH shifted part of its production to the U.S. by opening a Louis Vuitton workshop in Alvarado, Texas, during Trump’s first term. Trump and Arnault toured the facility together, promoting it as a symbol of U.S. manufacturing revival. But on Thursday, Arnault admitted the Texas site has underperformed so far. According to documents presented at the meeting, the U.S. accounts for 25% of LVMH’s total sales. Arnault also criticized France’s proposed corporate tax increases, calling them a “tax on ‘Made in France’” and warned they could push companies to relocate abroad. He praised the U.S. model, citing lower taxes and state-backed industrial investment. “When you come back to France after spending a few days in the U.S., it’s a bit of a cold shower,” he said.

The World Trade Organization (WTO) says the volume of trade in goods worldwide is likely to decrease by 0.2% this year due to US President Donald Trump’s shifting tariff policies and a standoff with China, but it would take a more severe hit if Trump carries through on his toughest “reciprocal” tariffs. The decline in trade will be particularly steep in North America even without the stiffest tariffs, the global trade forum said Wednesday, with exports there this year expected to fall by 12.6% and imports by 9.6%, AP reports. The WTO based its report on the tariff situation as of Monday. Initially, 2025 and 2026 were expected to have continued expansion of world trade, but Trump’s trade war forced WTO economists to substantially downgrade their forecast, the forum said. Trade in goods worldwide would slump by 1.5% if Trump follows through on his stiffest tariffs on most nations, due to the uncertainty unsettling businesses. China's economy grows at a 5.4% annual pace in Jan-March quarter Trump suspended the toughest set of tariffs for 90 days earlier this month so more than 70 countries have a chance to address US trade concerns. Meanwhile, he is increasing taxes on Chinese imports to 145% and engaging in a lengthy back and forth with Canada and Mexico about tariffs on their goods. Despite the 90-day pause, “the enduring uncertainty threatens to act as a brake on global growth, with severe negative consequences for the world, the most vulnerable economies in particular,” WTO Director-General Ngozi Okonjo-Iweala said in a statement. “Our simulations show that trade policy uncertainty has a significant dampening effect on trade flows, reducing exports and weakening economic activity,” WTO chief economist Ralph Ossa said in the statement. “Moreover, tariffs are a policy lever with wide-ranging and often unintended consequences. In a world of growing trade tensions, a clear-eyed view of those trade-offs is more important than ever."