Category Archives: Global economy

Trump asks US supreme court to overturn trade tariffs ruling

Posted on by

Move follows federal appeals court decision that sweeping ‘liberation day’ levies on imports had overstepped presidential powers

Donald Trump has asked the US supreme court to overturn a lower court decision that most of his sweeping trade tariffs were illegal.

The US president filed a petition late on Wednesday to ask for a review of last week’s federal appeals court ruling in Washington DC, which centred on his “liberation day” border taxes introduced on 2 April, which imposed levies of between 10% and 50% on most US imports, sending shock waves through global trade and markets.

Continue reading...

UK metals firms threaten to sue government over tariffs on steel imports from Asia

Posted on by

Companies send letter to business secretary complaining new rules were imposed with 24 hours’ notice

UK metals companies have threatened to take legal action against the government over tariffs on raw steel imports from Asia which they claim have caused a “tsunami” of problems for the industry.

Earlier this summer, the business secretary, Jonathan Reynolds, reduced the amount of raw steel from Vietnam and South Korea that can be imported tariff-free in a move designed to protect UK raw steel makers, which face competition from cheap imports.

Continue reading...

US and China poised to extend tariff truce after failing to find resolution at talks

Posted on by

Trump will need to approve pause, say US representatives after negotiations end with sides failing to break deadlock on trade terms

US and Chinese negotiators have agreed in principle to push back the deadline for escalating tariffs, although America’s representatives said any extension would need Donald Trump’s approval.

Officials from both sides said after two days of talks in Stockholm that while had failed to find a resolution across the many areas of dispute they had agreed to extend a pause due to run out on 12 August.

Continue reading...

European Central Bank keeps interest rates on hold despite sluggish growth

Posted on by

Central bank shuns calls to reduce borrowing costs as higher US tariffs loom

The European Central Bank has kept interest rates on hold as figures showed the eurozone economy maintaining a slow pace of economic growth.

In what was widely expected to be a pause before further cuts later in the year, the Frankfurt-based central bank shunned calls to reduce the cost of borrowing and held its main interest rate at 2% and the deposit rate at 2.15%.

Continue reading...

China’s economy beats expectations in face of Trump’s trade war

Posted on by

GDP grows 5.2% in second quarter as world’s second largest economy ‘front-loads’ shipments before tariffs kick in

China’s economy grew more strongly than expected in the second quarter as it proved resilient in the face of Donald Trump’s trade war.

China’s gross domestic product (GDP) grew 5.2% in April to June compared with a year earlier, slowing from 5.4% in the first quarter, but just ahead of analysts’ expectations for a rise of 5.1%.

Continue reading...

Lobbyists linked to Donald Trump paid millions by world’s poorest countries

Posted on by

Somalia, DR Congo and Yemen among states forced to sign deals and barter their minerals for aid or military support

Some of the world’s poorest countries have started paying millions to lobbyists linked to Donald Trump to try to offset US cuts to foreign aid, an investigation reveals.

Somalia, Haiti and Yemen are among 11 countries to sign significant lobbying deals with figures tied directly to the US president after he slashed US foreign humanitarian assistance.

Continue reading...

Is Trump tariff deal really a win for Vietnam – or a way of punishing China?

Posted on by

US exports account for third of Vietnam’s GDP and 40% tariff on so-called transshipments – products with Chinese input – means uncertainty for manufacturers

As news spread that Vietnam would become just the second nation to reach an initial tariff agreement with Washington, shares in the clothing companies and manufacturers that have a large footprint in the country rose with optimism.

Just hours later though, they declined sharply, as it became clear that the devil would be in the detail, and the most striking part of the deal might in fact be aimed at Vietnam’s powerful neighbour China.

Continue reading...

Trump says US to start sending tariff rates letters to trading partners

Posted on by

Letters to be sent to countries without a deal in place before end of 90-day pause on 9 July

Donald Trump has said the US will start sending letters to trading partners setting out tariff rates that countries will have to pay from the beginning of next month.

The US president told the media that about “10 or 12” letters would be sent out on Friday, with further letters sent out over the “next few days”.

Continue reading...

EU may as well be ‘province of China’ due to reliance on imports, says industrialist

Posted on by

Stefan Scherer, boss of AMG Lithium, says Europe must become more self-sufficient in critical raw materials and new technologies

The EU may as well “apply to be a province of China” such is its inability to wean itself off that country’s supply of critical raw materials used in everything from electric vehicles to smartphones and wind turbines, a leading German industrialist has said.

As chief executive of AMG Lithium, the EU’s first factory to make the lithium hydroxide used in many car batteries, Stefan Scherer sits at the centre of what has been dubbed a new gold rush.

Continue reading...

White House says Canadian PM ‘caved’ to Trump demand to scrap tech tax

Posted on by

Trump officials hail U-turn as Mark Carney says decision to rescind digital services tax means revival of trade talks

The United States has said that Canada’s prime minister Mark Carney “caved” to demands from the White House after his government abruptly scrapped their digital services tax on US technology companies, which was set to go into effect on Monday.

“It’s very simple. Prime minister Carney and Canada caved to president [Donald] Trump and the United States of America,” press secretary Karoline Leavitt said in a daily briefing.

Continue reading...

Rising poverty in conflict zones ‘causes a billion people to go hungry’

Posted on by

In first assessment since pandemic in 2020, World Bank urges other countries to step up support

Extreme poverty is accelerating in 39 countries affected by war and conflict, leaving more than a billion people to go hungry, according to the World Bank.

Civil wars and confrontations between nations, mostly in Africa, have set back economic growth and reduced the incomes of more than a billion people, “driving up extreme poverty faster than anywhere else”, the Washington-based body said.

Continue reading...

EU retaliation against Trump drug tariffs would be bad idea, says industry

Posted on by

European pharmaceutical body says it would be ‘negative for both sides’ if Brussels hits back on threatened US levies

The European pharmaceutical industry has urged Brussels not to retaliate if Donald Trump brings in threatened tariffs on imported drugs, amid fears he could impose the levies as early as next week.

The US president said last week that the sector-specific tariffs were coming “very soon”. There is concern in Brussels that he could impose them imminently to give himself further leverage ahead of his self-imposed 9 July deadline for trade deals with the EU and about 60 countries.

Continue reading...

High-rise, high expectations: is Casablanca’s finance hub a model for African development?

Posted on by

Morocco’s commercial centre has brought investment to the continent – but critics say it masks domestic inequality

For centuries, Casablanca was a significant trading hub for merchants from across the breadth of the Atlantic coast, given its geographical position between Africa, the Middle East and Europe.

These days, Morocco’s economic capital is merging those historical roots with a strong modern commercial identity. One such manifestation is the Casablanca Finance City (CFC) district, whose high-rise buildings stand as a symbol of the city’s dream of being a main gateway for international investment into Africa.

Continue reading...

Trump indicates ‘positive’ progress in US-EU trade talks

Posted on by

Wall Street up in early trading after US president commends bloc for calling to ‘quickly establish meeting dates’

Donald Trump has indicated there has been progress in US trade talks with the EU, helping send share prices rising on Wall Street, after he commended the bloc for calling to “quickly establish meeting dates”.

“I have just been informed that the EU has called to quickly establish meeting dates. This is a positive event, and I hope that they will,” Trump wrote on his Truth Social platform on Tuesday, saying the EU would be “very happy and successful” if it agreed a deal.

Continue reading...

Poorest 750 nations face ‘tidal wave’ of debt repayments to China in 2025, study warns

Posted on by

Vulnerable countries to pay record $22bn this year, mostly relating to loans issued under Xi Jinping’s belt and road initiative

The most vulnerable nations on Earth are facing a “tidal wave” of debt repayments as a Chinese lending boom starts to be called in, a new report has warned.

The analysis, published on Tuesday by Australian foreign policy thinktank the Lowy Institute, said that in 2025 the poorest 75 countries were on the hook for record high debt repayments US$22bn to China. The 75 nations’ debt formed the bulk of the total $35bn calculated by Lowy for 2025.

Continue reading...

EU hopes for quick deal to resolve US trade war after Trump delays 50% tariffs

Posted on by

European leaders call for ‘lowest possible’ border taxes after levies postponed from 1 June to 9 July

EU leaders have expressed hopes for a quick deal to resolve the trade war with the US after Donald Trump announced he was delaying his threatened 50% tariffs for the bloc until 9 July.

The US president said on Sunday he would pause the border tax due to be imposed on 1 June, which he had announced two days earlier, after what he called a “very nice call” with Ursula von der Leyen.

Continue reading...

EU president secures tariffs delay after talk with Trump

Posted on by

Enactment of 50% tariffs postponed until July so both sides can ‘reach a good deal’ after pressure from European leaders

Donald Trump has announced that he will pause his threatened 50% tariffs on the European Union until 9 July, after a “very nice call” with EU chief Ursula von der Leyen.

The European Commission president announced in a social media post that she had spoken with Trump and secured the delay to give the two sides more time to negotiate.

Continue reading...

Any trade deal with US must be based on ‘respect not threats’, says EU commissioner

Posted on by

Maroš Šefčovič’s remarks come after pace of talks prompted Trump to propose 50% tariff on goods from bloc

The European Union’s trade chief has struck a defiant tone after Donald Trump threatened to place a 50% tariff on all goods from the bloc, saying any potential trade deal between Brussels and Washington must be based on “respect not threats”.

The US president made his announcement after voicing frustration with the pace of progress on a trade agreement with the EU. The new rates would come into effect from 1 June.

Continue reading...

World’s seven wealthiest countries agree to counter China’s trade practices

Posted on by

G7 finance ministers and central bank governors pledge to address ‘economic imbalances’, without naming China

Top finance officials from the world’s seven wealthiest democracies have set aside stark differences on US tariffs and agreed to counter global “economic imbalances”, a swipe at China’s trade practices.

Ahead of the meeting of G7 finance ministers and central bank governors there had been doubt about whether there would be a final communique, given divisions over US tariffs and Washington’s reluctance to refer to Russia’s war on Ukraine as illegal.

Continue reading...

South Africa’s Ramaphosa expected to take golf stars to Trump meeting

Posted on by

Ernie Els and Retief Goosen reportedly part of delegation as president seeks to reset ties after white ‘genocide’ claims

The South African president, Cyril Ramaphosa, is expected to take the golfers Ernie Els and Retief Goosen with him to meet Donald Trump in the Oval Office on Wednesday, as the government attempts to reset relations with the US amid Trump’s accusations that it is fomenting a white “genocide”.

Ramaphosa’s appeal to Trump’s love of golf, with the potential inclusion of Els and Goosen reported by South African local media, is part of his efforts to avoid a public dressing down of the kind Trump gave to the Ukrainian president, Volodymyr Zelenskyy, in February.

Continue reading...