May seen as turning point for us inflation trend
The downward trend in US inflation looks set to end. As the Trump administration's tariff measures drive price increases, an analyst says that will likely depress consumption and growth.
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Japan Times
2 hours ago
- Japan Times
Modi to attend G7 summit in Canada in sign of warming ties
Indian Prime Minister Narendra Modi will be attending the Canada-hosted Group of Seven summit later this month as ties between the two nations improve. The South Asian country is not a member of the G7, a grouping of seven of the world's richest countries, comprising the U.S., U.K., Germany, France, Italy, Canada and Japan. But this will be India's 12th time participating and Modi's sixth consecutive invitation to the summit. In a post on X, Modi said Canadian Prime Minister Mark Carney invited him to the G7 summit and he looks forward to their meeting. The development signals improving relations between the two nations, which have been frayed over the Modi government's alleged involvement in homicides and extortion targeting Sikhs in Canada who advocate for carving out a separate homeland for followers of the faith. The rift started in September 2023 when then-Prime Minister Justin Trudeau accused Indian officials of masterminding the assassination of prominent Sikh activist Hardeep Singh Nijjar, a Canadian citizen. The Indian government denied any involvement, calling the accusations absurd. Carney's office said in a readout of the phone call that he and Modi discussed the longstanding relationship between Canada and India, including "deep people-to-people ties and significant commercial links.' "Importantly, there was agreement to continued law enforcement dialogue and discussions addressing security concerns,' the readout said, adding the two leaders "agreed to remain in contact and looked forward to meeting at the G7 Leaders' Summit later this month.' The invitation comes as the South Asian nation is expected to overtake Japan and become the fourth-largest economy by March next year, according to estimates by the International Monetary Fund, though it will still be among the world's low per-capita economies. Trade between Canada and India totaled at least $12 billion in 2024. That's minor compared to the U.S.-India trade relationship, which totaled almost $130 billion and U.S.-Canada trade, which topped $700 billion, according to data from the Office of the U.S. Trade Representative. But the barrage of tariffs being imposed by President Donald Trump means both Canada and India are looking to strengthen trade ties with nations other than the United States. This may prompt the two countries to reset their relations. Canada is a major supplier to India of potash, a fertilizer critical to the agricultural sector. It also exports timber, paper and mining products. India supplies Canada with pharmaceuticals, gems and jewelry, textiles, and machinery. The South Asian country is also a significant source of international students to Canada. The World Sikh Organization of Canada, a group that advocates for the country's large Sikh diaspora, expressed shock and hurt at Modi's invitation. It sent a letter in May urging Carney not to invite the Indian prime minister, pointing to his government's well-documented campaign of transnational repression targeting Sikhs in Canada. "This is a complete betrayal of our community. It's second-class citizenship and it's hurtful,' Balpreet Singh, legal counsel and spokesperson for the WSO, said in an interview. "This is really a line that has been crossed.' "Justin Trudeau had the respect of our community. We've seen that he had flaws, but he took a principled stand. But Mark Carney has shown that all that matters to him and his government is going to be the dollar, and that's unfortunate. That's a betrayal of Canadian values.'
NHK
3 hours ago
- NHK
Trump says he has no plans to speak with Musk
US President Donald Trump has dismissed the idea of trying to fix his relationship with billionaire entrepreneur Elon Musk anytime soon, in a sign of a deepening rift between the once close allies. Musk resigned from a key government post late last month. Their relationship has since been rapidly deteriorating over Trump's signature bill featuring tax cuts, which Musk has harshly criticized. The pair have been trading barbs on social media. On Friday, Trump told reporters he has been so busy working on many issues that he isn't thinking about Musk. He added, "I just wish him well." Asked whether he has any plans to speak with Musk, Trump said, "I don't have any plans," and added he is not even thinking about that. Trump also said Musk gets a lot of subsidies, hinting again at the possibility of reviewing government contracts with Musk's businesses. Meanwhile, Musk floated the idea of founding a new political party, citing the results of a poll on his social media platform X. He said in a post: "A new political party is needed in America to represent the 80% in the middle! And exactly 80% of people agree. This is fate."
Japan Times
5 hours ago
- Japan Times
South Korea's Lee, Trump agree to work toward swift tariff deal
U.S. President Donald Trump and South Korea's new president, Lee Jae-myung, agreed to work toward a swift tariff deal in their first phone call since Lee was elected this week, Lee's office said Friday. Trump has imposed tariffs on South Korea, a long time ally with which it has a bilateral free trade deal, and pressed it to pay more for the 28,500 U.S. troops stationed there. Separately, Trump allies have aired concerns about Lee's more conciliatory stance toward China, Washington's main geopolitical rival. Lee, a liberal, was elected on June 3 after former conservative leader, Yoon Suk Yeol, was impeached and ousted. The future of South Korea's export-oriented economy may hinge on what kind of deal Lee can strike with Trump, with all of his country's key sectors from chips to autos and shipbuilding heavily exposed to global trade. His term began on Wednesday. "The two presidents agreed to make an effort to reach a satisfactory agreement on tariff consultations as soon as possible that both countries can be satisfied with," Lee's office said in a statement. "To this end, they decided to encourage working-level negotiations to yield tangible results." Trump invited Lee to a summit in the U.S. and they plan to meet soon, according to a White House official. Analysts say the first opportunity for the two to meet could be at a Group of Seven summit in Canada in mid-June. Lee's office said the two leaders also discussed the assassination attempts they both experienced last year as well as their enthusiasm for golf. Lee underwent surgery after he was stabbed in the neck by a man in January last year, while Trump was wounded in the ear by a bullet fired by a would-be assassin in July. South Korea, a major U.S. ally and one of the first countries after Japan to engage with Washington on trade talks, agreed in late April to craft a "July package" scrapping levies before the 90-day pause on Trump's reciprocal tariffs is lifted, but progress was disrupted by the change of governments in Seoul. Lee said on the eve of the elections that "the most pressing matter is trade negotiations with the United States." Lee's camp has said, however, that they intend to seek more time to negotiate on trade with Trump. While reiterating the importance of the U.S.-South Korea alliance, Lee has also expressed more conciliatory plans for ties with China and North Korea, singling out the importance of China as a major trading partner while indicating a reluctance to take a firm stance on security tensions in the Taiwan Strait. Political analysts say that while Trump and Lee may share a desire to try to re-engage with North Korea, Lee's stance on China could cause friction with the U.S. A White House official said this week that South Korea's election was fair, but expressed concern about Chinese interference in what analysts said may have been a cautionary message to Lee. Speaking in Singapore last week, U.S. Defense Secretary Pete Hegseth said many countries were tempted by the idea of seeking economic cooperation with China and defense cooperation with the United States, and warned that such entanglement complicated defense cooperation.
