
Trump to put tariffs of over 10% on smaller nations, including those in Africa and the Caribbean - Economy
'We'll probably set one tariff for all of them,' Trump said, adding that it could be 'a little over 10% tariff' on goods from at least 100 nations.
Commerce Secretary Howard Lutnick interjected that the nations with goods being taxed at these rates would be in Africa and the Caribbean, places that generally do relatively modest levels of trade with the US and would be relatively insignificant for addressing Trump's goals of reducing trade imbalances with the rest of the world.
The president had this month been posting letters to roughly two dozen countries and the European Union that simply levied a tariff rate to be charged starting Aug. 1.
Those countries generally faced tax rates on the goods close to the April 2 rates announced by the US president, whose rollout of historically high import taxes for the US caused financial markets to panic and led to Trump setting a 90-day negotiating period that expired July 9.
Trump also said he would 'probably' announce tariffs on pharmaceutical drugs at the 'end of the month.'
The president said he would start out at a lower tariff rate and give companies a year to build domestic factories before they faced higher import tax rates. Trump said computer chips would face a similar style of tariffs.
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Al-Ahram Weekly
an hour ago
- Al-Ahram Weekly
Egypt government committed to economic reform - Economy - Al-Ahram Weekly
Egypt's economy expanded by 4.8 per cent in the third quarter of fiscal year 2024-25, up from 4.2 per cent in the first nine months and 2.4 per cent at the start of the fiscal year, Finance Minister Ahmed Kouchouk told a seminar on 'Fiscal Policy Between Financing Challenges and Growth Aspirations' organised by the Egypt-Canada Business Council and the Egyptian Business Council for International Cooperation on Monday. Last week, Kouchouk told participants during the opening session of the 'Egypt Day' at the London Stock Exchange in the UK that the country's primary surplus had reached 3.6 per cent in fiscal year 2024-25, the highest ever recorded, with a 35 per cent growth in tax revenues. He said the figures were the outcome of Egypt's solid fiscal performance. Delivering a presentation about the country's macroeconomic outlook, he said that taxes had not been increased or new ones imposed. The increased revenue was possible because of facilitations, broadening the tax base, digitisation, and building trust, the minister said. Given the improved revenues, Kouchouk said that next year he hopes to triple allocations supporting the economy, double export funding, and launch more initiatives supporting the industrial and tourism sectors and entrepreneurship. He said this was possible despite the headwinds that had affected Suez Canal revenues and an oil sector that needed support to rebound. He said he was confident that the country would meet its key economic reform targets and have a delayed review of its $8 billion International Monetary Fund (IMF) programme completed by September or October, according to Reuters. According to the news agency, Kouchouk said he expected the government to complete three to four privatisations across various sectors before the end of the current fiscal year 2025-26. He said the government had shared a medium-term plan for these with the IMF and international institutions. The fifth review of Egypt's $8 billion Extended Fund Facility programme by the IMF has been delayed due to slow progress on reforms such as divesting state assets and reducing the footprint of the government in the economy. This meant that Egypt would not receive the fifth tranche of $1.2 billion that was set to be release by the IMF following the review. However, once Egypt passes the combined fifth and sixth review scheduled for this autumn, it should receive $2.5 billion. Prime Minister Mustafa Madbouli had previously referred to the regional and global turmoil and its effects on the investment climate and the movement of capital in explaining the delays, indicating that these conditions had not been favourable to the sale of stakes in state-owned companies. At a recent press conference, he affirmed that selling stakes in state-owned companies was important for the government. He said that the IMF had not asked the state to offer stakes in specific sectors or companies, affirming that the decision was 100 per cent Egyptian, and that the delays were due to the state's target of achieving a specific return from the offering of the assets. If this return is not achieved, the offering is postponed to a more suitable time, he explained. In November 2024, Madbouli said that the government was planning to offer stakes in 10 state-owned companies in 2025, including four military-owned companies and banks. The list also included companies in the pharmaceuticals sector. Moreover, the government said it would privatise the management of Egypt's airports at a recent press conference, with Madbouli explaining that this involves offering the management and operation of the airports to specialised global companies. He said that the return generated by these companies in managing the airports would represent a higher value than what would be achieved through state management. In the meantime, the IMF released its report on the fourth review of Egypt's reform programme that took place earlier this year. According to the IMF report, the government has made progress in stabilising the economy. However, it said that going forward 'it is critical not only to consolidate these short-term gains but also accelerate the implementation of structural reforms.' The fourth review gives a glimmer of hope, said Hesham Shafick, assistant professor of strategic management at the German International University (GIU) in Cairo, citing it as acknowledging that inflation had cooled to around 24 per cent compared to a peak of 38 per cent and that GDP growth is recovering and reserves have accumulated quicker than expected. Quarterly real GDP growth picked up to 3.5 per cent in the first quarter of fiscal year 2024-25 compared to 2.7 per cent the same time the year before. Net international reserves reached $48.7 billion at the end of June 2025, according to the Central Bank of Egypt (CBE). However, Shafick said that some of the challenges mentioned by the report remain the same as those mentioned by the IMF since day one of the agreement, namely that the government needs to take a back seat in the economy and allow the private sector more room to operate. The fourth review report said that 'deeper reforms are required to unlock Egypt's growth potential, sustainably reduce its vulnerabilities, and meet its economic and social needs.' Reducing the role of the public sector in the economy is an urgent priority, the report stressed. It listed essential reforms such as developing a financial system that supports private-sector development, strengthening the competitiveness of the economy, and levelling the playing field and reducing red tape. According to Shafick, the economy continues to depend on piecemeal solutions such as the sale of assets or loans, while real recovery requires shrinking the state's role in non-strategic sectors and encouraging private-sector investment inflow in productive sectors. He said that while the government appears to be serious about clearing the way for private-sector activity, it needs to take steps on the ground such as issuing new legislation that will create an ecosystem that would attract the private sector. The private sector wants to make sure that it will be competing on equal terms with other players in the market, Shafick said. Economist Moataz Yeken said in a post on his Linkedin page that Egypt's macroeconomic indicators may be stabilising on the surface, thanks to hefty foreign currency inflows from Gulf allies, proceeds from the Ras Al-Hekma deal, and multilateral support, but the real economy remains constrained. He also noted that progress on the State Ownership Policy and public-asset divestment has been limited. 'While Egypt has demonstrated resilience in the face of external shocks, from Covid-19 to war-induced commodity disruptions, the model of stabilisation through foreign borrowing and asset monetisation is not a substitute for structural reform. It buys time, not sustainability,' Yeken wrote. Nonetheless, the IMF's continued support is not in doubt. According to Shafick, Egypt's geopolitical status will shield it against any fallout from the IMF's decision to delay the fifth review and the accompanying disbursement of funds, especially if it moves faster with reforms. Earlier this month, the US ratings agency Moody's kept Egypt's outlook positive and affirmed its Caa1 rating. The agency said its outlook 'reflects the prospect for an easing of Egypt's debt service burden… and increasing monetary policy credibility and effectiveness.' Yeken said that 'the IMF's continued support is not in question. Egypt remains geopolitically strategic.' However, he stressed that 'Egypt's own long-term stability hinges on a genuine pivot away from state-led commercial expansion and toward a rules-based, competitive market economy.' Attracting foreign direct investments (FDI) and selling stakes in state-owned companies is crucial not only for the growth of the economy but also to bring in revenue to bridge Egypt's financing gap. In the fourth review report, the IMF estimated the financing gap at $8.2 billion in 2025-26. To help bridge that gap, bond issuances are in order. Kouchouk said that there are plans to issue up to $4 billion of various types of bonds. Last month, $1 billion worth of sovereign sukuk (Islamic bonds) was issued. Though these issuances have raised concerns about growing external debt, the government has said it is part of a strategy to extend the maturity of its debt. The IMF puts Egypt's external debt at reaching around $180 billion in the current fiscal year, with external debt servicing amounting to $46.6 billion. During his meeting in London last week, the minister said the government was implementing an integrated strategy to improve public debt indicators and maintain investor confidence. During the seminar on Monday, he said the government had already begun reducing the country's debt-to-GDP ratio, targeting overall improvements in all economic indicators over the coming period. He added that the government remains committed to reducing external debt-servicing obligations for all budget entities by $1 to $2 billion annually. * A version of this article appears in print in the 24 July, 2025 edition of Al-Ahram Weekly Follow us on: Facebook Instagram Whatsapp Short link:


See - Sada Elbalad
an hour ago
- See - Sada Elbalad
Columbia University to Pay $221 Mln in Federal Settlement
Israa Farhan Columbia University has reached a $221 million settlement with the United States federal government, resolving multiple investigations and restoring access to suspended federal funding, the institution confirmed on Wednesday. The agreement includes a $200 million payment over three years related to investigations into alleged antisemitism on campus, as well as a $21 million settlement with the US Equal Employment Opportunity Commission. The deal follows months of federal scrutiny and marks a turning point for one of America's most prestigious academic institutions. Crucially, Columbia retains full autonomy over core academic affairs, including faculty appointments, admissions policies, and curricular design. Acting President Claire Shipman described the outcome as a vital step toward restoring institutional stability and clarity after a prolonged period of regulatory tension. As part of the agreement, the majority of federal research grants suspended or revoked earlier in the year will be reinstated, providing a significant financial lifeline to the university's research and academic programs. The settlement comes one day after Columbia imposed disciplinary action on dozens of students involved in pro-Palestinian demonstrations in spring 2024 and May 2025. These sanctions include expulsions, suspensions, probations, and revocation of degrees. The university had become a central stage for nationwide protests against the war in Gaza. read more Gold prices rise, 21 Karat at EGP 3685 NATO's Role in Israeli-Palestinian Conflict US Expresses 'Strong Opposition' to New Turkish Military Operation in Syria Shoukry Meets Director-General of FAO Lavrov: confrontation bet. nuclear powers must be avoided News Iran Summons French Ambassador over Foreign Minister Remarks News Aboul Gheit Condemns Israeli Escalation in West Bank News Greek PM: Athens Plays Key Role in Improving Energy Security in Region News One Person Injured in Explosion at Ukrainian Embassy in Madrid News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Sports Get to Know 2025 WWE Evolution Results News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" News Flights suspended at Port Sudan Airport after Drone Attacks


See - Sada Elbalad
an hour ago
- See - Sada Elbalad
Central Banks Show No Sign of Slowing Their Rush to Gold as Geopolitical Tensions Intensify Amid Trump's Policies
Waleed Farouk Central banks around the world show no indication of slowing down their push into gold, as the political and economic turmoil resulting from former U.S. President Donald Trump's foreign policies continues to fuel demand for the precious metal. According to a research report by global investment firm Invesco, central banks are steadily expanding their gold holdings, with nearly 50% of monetary authorities planning to increase their gold allocations over the next three years. 'Amid rising uncertainty and limited currency diversification options, gold has re-emerged as a fundamental pillar for enhancing reserve resilience,' said Rod Ringrow, Head of Official Institutions at Invesco. 'Gold is valued not just for its traditional role as a safe haven, but also for its political neutrality — a critical factor as geopolitical risks rise,' he added. Trump's presidency triggered widespread volatility in financial markets. His announcement of 'Liberation Day' tariffs on April 2 had a sharp negative impact on investor sentiment. U.S. stock markets recorded their worst week since the COVID-19 crash, while Asian stocks suffered their steepest declines in decades. Commenting on current market risks, JPMorgan CEO Jamie Dimon stated during the bank's quarterly earnings release last week: 'Significant risks remain — including tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits, and inflated asset prices.' Invesco's 13th edition of its Global Sovereign Asset Management Study (49 pages) quoted a central banker from Latin America as saying: 'Gold is a diversifier, but it is also a form of protection — a backstop when all else fails.' The study's findings align with a June survey conducted by the World Gold Council, which polled 72 central banks. It showed a record number of respondents expecting to increase their gold holdings over the next 12 months, with 43% indicating plans to boost reserves — up from 29% the previous year. Shaokai Fan, Head of Central Banks at the World Gold Council, said: 'Western countries have stopped selling gold, while emerging markets are accelerating purchases, aiming to catch up and build larger reserves.' Speaking specifically about 2024, Fan described central bank demand for gold as 'insatiable,' noting that purchases had exceeded 1,000 metric tons for the third year in a row. Central banks have become one of the primary forces driving the ongoing gold bull market, which has seen prices double since late 2022 — a trend that accelerated following Russia's invasion of Ukraine. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Sports Get to Know 2025 WWE Evolution Results News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" News Flights suspended at Port Sudan Airport after Drone Attacks