Donald Trump hikes tariffs for India to 50 per cent as punishment for buying Russian oil
The American leader says its continued purchase of Russian oil, some of which it onsells to third countries, including Australia, is a key to Moscow's war effort in Ukraine.
The tariff comes into effect in three weeks and will be on top of a separate 25 per cent tariff to begin on Thursday, which takes the total tariff hike to 50 per cent.
India claims the decision was 'unfortunate', adding it was importing the oil to provide energy security for its massive population at a good price.
It also points to the vast quantities of uranium, plutonium, and fertiliser that the US buys from Russia.
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The Advertiser
2 hours ago
- The Advertiser
Stock and bond markets cautious ahead of big week
Stocks are marking time, holding just shy of peaks scaled in late July, as investors await a crucial report on US inflation that will likely also set the course of the dollar and bonds. Trade and geopolitics also loom large for investors this week. A US tariff deadline on China, due to expire on Tuesday, is expected to be extended again, while US President Donald Trump and Russian leader Vladimir Putin are due to meet in Alaska on Friday to discuss ending the Ukraine war. S&P 500 futures were last up 0.16 per cent, with Europe's STOXX 600 share index flat on the day after Asia-Pacific stocks had gained 0.3 per cent on Monday. That leaves MSCI's world share index around 0.2 per cent below its all-time high hit in late July as a strong earnings season in the United States, and a mildly positive one in Europe, supports overall sentiment, helping investors to shrug off the impact of soft US July jobs data. The main economic release this week will be US consumer prices on Tuesday, with analysts expecting the impact of tariffs to help nudge the core up 0.3 per cent to an annual pace of two per cent and away from the Federal Reserve target of two per cent. An upside surprise would challenge market wagers for a September rate cut, though analysts assume it would have to be a very high number given that a downward turn in payrolls is now dominating the outlook. It also comes at a complicated time for the Fed, with Trump having repeatedly criticised policymakers for not cutting rates at recent meetings, and with the focus on who will succeed current chair Jerome Powell, whose term ends in May. This, said Paul Mackel, Global Head of FX Research at HSBC, meant that the dollar's reaction to the CPI data would not be straightforward. If the figure indicated higher US tariff price pressures, "that could support the stagflation narrative, and to the dollar's detriment", he said, adding this would also go against the view of some policymakers that tariffs were not causing prices to increase. "If, however, softer US CPI readings materialise, including the core goods figures, this would likely challenge the dollar too by supporting the case for further Fed easing, and perhaps see greater criticism from the US administration towards Fed Chair Powell." Markets imply around a 90 per cent probability of a September easing, and at least one more cut by year-end. That has helped support Treasuries, and the US benchmark 10-year yield was last at 4.27 per cent, down around one basis point and hovering near last week's low of 4.187 per cent. The prospect of lower borrowing costs has supported equities, along with a run of strong earnings, particularly from tech names. Analysts were unsure what to make of reports, including by Reuters, that Nvidia and AMD have agreed to give the US government 15 per cent of their revenues from chip sales in China, under an arrangement to obtain export licences for the semiconductors. Shares of both companies were marginally lower in pre-market trading. Chinese blue chips added 0.4 per cent after data showed consumer price inflation ticked up in July, but producer prices kept falling as the country's massive manufacturing sector exported deflation to the rest of the world. Figures on Chinese industrial output and retail sales for July are due on Friday, and forecasts are for a slight slowdown after a jump in the previous month. Currencies were quiet, with early trading thinned by a holiday in Japan. The euro was marginally softer at $1.1627 on Monday while the dollar inched up to 147.87 yen. The Australian dollar eased to $0.6510 ahead of a meeting of the Reserve Bank of Australia, which is widely expected to back a rate cut. It stunned markets in July by skipping an easing of policy to await more inflation data. In commodity markets, gold fell 1.3 per cent to $3,354 an ounce after wild swings last week on reports that the US would slap 39 per cent tariffs on some gold bars, which are major exports of Switzerland. The White House has said it planned to issue an executive order clarifying the country's stance. Oil prices stabilised as investors looked ahead to the talks between Trump and Putin in Alaska on Friday, with US policy towards Russian oil exports in focus. Brent rose 0.6 per cent to $66.99 a barrel, while crude gained 0.5 per cent to $64.20. Stocks are marking time, holding just shy of peaks scaled in late July, as investors await a crucial report on US inflation that will likely also set the course of the dollar and bonds. Trade and geopolitics also loom large for investors this week. A US tariff deadline on China, due to expire on Tuesday, is expected to be extended again, while US President Donald Trump and Russian leader Vladimir Putin are due to meet in Alaska on Friday to discuss ending the Ukraine war. S&P 500 futures were last up 0.16 per cent, with Europe's STOXX 600 share index flat on the day after Asia-Pacific stocks had gained 0.3 per cent on Monday. That leaves MSCI's world share index around 0.2 per cent below its all-time high hit in late July as a strong earnings season in the United States, and a mildly positive one in Europe, supports overall sentiment, helping investors to shrug off the impact of soft US July jobs data. The main economic release this week will be US consumer prices on Tuesday, with analysts expecting the impact of tariffs to help nudge the core up 0.3 per cent to an annual pace of two per cent and away from the Federal Reserve target of two per cent. An upside surprise would challenge market wagers for a September rate cut, though analysts assume it would have to be a very high number given that a downward turn in payrolls is now dominating the outlook. It also comes at a complicated time for the Fed, with Trump having repeatedly criticised policymakers for not cutting rates at recent meetings, and with the focus on who will succeed current chair Jerome Powell, whose term ends in May. This, said Paul Mackel, Global Head of FX Research at HSBC, meant that the dollar's reaction to the CPI data would not be straightforward. If the figure indicated higher US tariff price pressures, "that could support the stagflation narrative, and to the dollar's detriment", he said, adding this would also go against the view of some policymakers that tariffs were not causing prices to increase. "If, however, softer US CPI readings materialise, including the core goods figures, this would likely challenge the dollar too by supporting the case for further Fed easing, and perhaps see greater criticism from the US administration towards Fed Chair Powell." Markets imply around a 90 per cent probability of a September easing, and at least one more cut by year-end. That has helped support Treasuries, and the US benchmark 10-year yield was last at 4.27 per cent, down around one basis point and hovering near last week's low of 4.187 per cent. The prospect of lower borrowing costs has supported equities, along with a run of strong earnings, particularly from tech names. Analysts were unsure what to make of reports, including by Reuters, that Nvidia and AMD have agreed to give the US government 15 per cent of their revenues from chip sales in China, under an arrangement to obtain export licences for the semiconductors. Shares of both companies were marginally lower in pre-market trading. Chinese blue chips added 0.4 per cent after data showed consumer price inflation ticked up in July, but producer prices kept falling as the country's massive manufacturing sector exported deflation to the rest of the world. Figures on Chinese industrial output and retail sales for July are due on Friday, and forecasts are for a slight slowdown after a jump in the previous month. Currencies were quiet, with early trading thinned by a holiday in Japan. The euro was marginally softer at $1.1627 on Monday while the dollar inched up to 147.87 yen. The Australian dollar eased to $0.6510 ahead of a meeting of the Reserve Bank of Australia, which is widely expected to back a rate cut. It stunned markets in July by skipping an easing of policy to await more inflation data. In commodity markets, gold fell 1.3 per cent to $3,354 an ounce after wild swings last week on reports that the US would slap 39 per cent tariffs on some gold bars, which are major exports of Switzerland. The White House has said it planned to issue an executive order clarifying the country's stance. Oil prices stabilised as investors looked ahead to the talks between Trump and Putin in Alaska on Friday, with US policy towards Russian oil exports in focus. Brent rose 0.6 per cent to $66.99 a barrel, while crude gained 0.5 per cent to $64.20. Stocks are marking time, holding just shy of peaks scaled in late July, as investors await a crucial report on US inflation that will likely also set the course of the dollar and bonds. Trade and geopolitics also loom large for investors this week. A US tariff deadline on China, due to expire on Tuesday, is expected to be extended again, while US President Donald Trump and Russian leader Vladimir Putin are due to meet in Alaska on Friday to discuss ending the Ukraine war. S&P 500 futures were last up 0.16 per cent, with Europe's STOXX 600 share index flat on the day after Asia-Pacific stocks had gained 0.3 per cent on Monday. That leaves MSCI's world share index around 0.2 per cent below its all-time high hit in late July as a strong earnings season in the United States, and a mildly positive one in Europe, supports overall sentiment, helping investors to shrug off the impact of soft US July jobs data. The main economic release this week will be US consumer prices on Tuesday, with analysts expecting the impact of tariffs to help nudge the core up 0.3 per cent to an annual pace of two per cent and away from the Federal Reserve target of two per cent. An upside surprise would challenge market wagers for a September rate cut, though analysts assume it would have to be a very high number given that a downward turn in payrolls is now dominating the outlook. It also comes at a complicated time for the Fed, with Trump having repeatedly criticised policymakers for not cutting rates at recent meetings, and with the focus on who will succeed current chair Jerome Powell, whose term ends in May. This, said Paul Mackel, Global Head of FX Research at HSBC, meant that the dollar's reaction to the CPI data would not be straightforward. If the figure indicated higher US tariff price pressures, "that could support the stagflation narrative, and to the dollar's detriment", he said, adding this would also go against the view of some policymakers that tariffs were not causing prices to increase. "If, however, softer US CPI readings materialise, including the core goods figures, this would likely challenge the dollar too by supporting the case for further Fed easing, and perhaps see greater criticism from the US administration towards Fed Chair Powell." Markets imply around a 90 per cent probability of a September easing, and at least one more cut by year-end. That has helped support Treasuries, and the US benchmark 10-year yield was last at 4.27 per cent, down around one basis point and hovering near last week's low of 4.187 per cent. The prospect of lower borrowing costs has supported equities, along with a run of strong earnings, particularly from tech names. Analysts were unsure what to make of reports, including by Reuters, that Nvidia and AMD have agreed to give the US government 15 per cent of their revenues from chip sales in China, under an arrangement to obtain export licences for the semiconductors. Shares of both companies were marginally lower in pre-market trading. Chinese blue chips added 0.4 per cent after data showed consumer price inflation ticked up in July, but producer prices kept falling as the country's massive manufacturing sector exported deflation to the rest of the world. Figures on Chinese industrial output and retail sales for July are due on Friday, and forecasts are for a slight slowdown after a jump in the previous month. Currencies were quiet, with early trading thinned by a holiday in Japan. The euro was marginally softer at $1.1627 on Monday while the dollar inched up to 147.87 yen. The Australian dollar eased to $0.6510 ahead of a meeting of the Reserve Bank of Australia, which is widely expected to back a rate cut. It stunned markets in July by skipping an easing of policy to await more inflation data. In commodity markets, gold fell 1.3 per cent to $3,354 an ounce after wild swings last week on reports that the US would slap 39 per cent tariffs on some gold bars, which are major exports of Switzerland. The White House has said it planned to issue an executive order clarifying the country's stance. Oil prices stabilised as investors looked ahead to the talks between Trump and Putin in Alaska on Friday, with US policy towards Russian oil exports in focus. Brent rose 0.6 per cent to $66.99 a barrel, while crude gained 0.5 per cent to $64.20. Stocks are marking time, holding just shy of peaks scaled in late July, as investors await a crucial report on US inflation that will likely also set the course of the dollar and bonds. Trade and geopolitics also loom large for investors this week. A US tariff deadline on China, due to expire on Tuesday, is expected to be extended again, while US President Donald Trump and Russian leader Vladimir Putin are due to meet in Alaska on Friday to discuss ending the Ukraine war. S&P 500 futures were last up 0.16 per cent, with Europe's STOXX 600 share index flat on the day after Asia-Pacific stocks had gained 0.3 per cent on Monday. That leaves MSCI's world share index around 0.2 per cent below its all-time high hit in late July as a strong earnings season in the United States, and a mildly positive one in Europe, supports overall sentiment, helping investors to shrug off the impact of soft US July jobs data. The main economic release this week will be US consumer prices on Tuesday, with analysts expecting the impact of tariffs to help nudge the core up 0.3 per cent to an annual pace of two per cent and away from the Federal Reserve target of two per cent. An upside surprise would challenge market wagers for a September rate cut, though analysts assume it would have to be a very high number given that a downward turn in payrolls is now dominating the outlook. It also comes at a complicated time for the Fed, with Trump having repeatedly criticised policymakers for not cutting rates at recent meetings, and with the focus on who will succeed current chair Jerome Powell, whose term ends in May. This, said Paul Mackel, Global Head of FX Research at HSBC, meant that the dollar's reaction to the CPI data would not be straightforward. If the figure indicated higher US tariff price pressures, "that could support the stagflation narrative, and to the dollar's detriment", he said, adding this would also go against the view of some policymakers that tariffs were not causing prices to increase. "If, however, softer US CPI readings materialise, including the core goods figures, this would likely challenge the dollar too by supporting the case for further Fed easing, and perhaps see greater criticism from the US administration towards Fed Chair Powell." Markets imply around a 90 per cent probability of a September easing, and at least one more cut by year-end. That has helped support Treasuries, and the US benchmark 10-year yield was last at 4.27 per cent, down around one basis point and hovering near last week's low of 4.187 per cent. The prospect of lower borrowing costs has supported equities, along with a run of strong earnings, particularly from tech names. Analysts were unsure what to make of reports, including by Reuters, that Nvidia and AMD have agreed to give the US government 15 per cent of their revenues from chip sales in China, under an arrangement to obtain export licences for the semiconductors. Shares of both companies were marginally lower in pre-market trading. Chinese blue chips added 0.4 per cent after data showed consumer price inflation ticked up in July, but producer prices kept falling as the country's massive manufacturing sector exported deflation to the rest of the world. Figures on Chinese industrial output and retail sales for July are due on Friday, and forecasts are for a slight slowdown after a jump in the previous month. Currencies were quiet, with early trading thinned by a holiday in Japan. The euro was marginally softer at $1.1627 on Monday while the dollar inched up to 147.87 yen. The Australian dollar eased to $0.6510 ahead of a meeting of the Reserve Bank of Australia, which is widely expected to back a rate cut. It stunned markets in July by skipping an easing of policy to await more inflation data. In commodity markets, gold fell 1.3 per cent to $3,354 an ounce after wild swings last week on reports that the US would slap 39 per cent tariffs on some gold bars, which are major exports of Switzerland. The White House has said it planned to issue an executive order clarifying the country's stance. Oil prices stabilised as investors looked ahead to the talks between Trump and Putin in Alaska on Friday, with US policy towards Russian oil exports in focus. Brent rose 0.6 per cent to $66.99 a barrel, while crude gained 0.5 per cent to $64.20.
Sky News AU
5 hours ago
- Sky News AU
‘Russia is a European problem': Trump to meet with Putin in Alaska
Centre of the American Experiment President John Hinderaker says US President Donald Trump has made it clear that Russia is 'fundamentally a European problem'. 'First of all, the Trump administration has been clear all along that Russia is fundamentally a European problem,' Mr Hinderaker told Sky News host Danica De Giorgio. 'The Europeans should be taking the lead in responding to and deterring Russian aggression.'
The Age
6 hours ago
- The Age
ASX higher on rate cut hopes; JB Hi-Fi falls
Financial stocks were stronger, with Westpac up 1.9 per cent, ANZ rising 1.2 per cent and NAB adding 0.9 per cent. Commonwealth Bank, which will deliver its results on Wednesday, was 01.1 per cent higher. Loading Energy stocks were mixed, with Woodside adding 0.7 per cent, Yancoal flat and Santos slipping 0.1 per cent. The laggards Consumer discretionary stocks were the worst performing segment, down 1.6 per cent after a strong performance last week as JB Hi-Fi slumped 8.4 per cent to $107.83 despite boosting sales and profits as long-serving CEO Terry Smart announced his departure. He will be replaced by chief operating officer Nick Wells. The leadership announcement was made on the same day its full-year results were released, revealing a 10 per cent rise in sales to $10.6 billion, and a 5.4 per cent growth in profits to $462.4 million for fiscal 2025. The company has announced a fully franked final dividend of 105¢ a share, bringing the total dividend to 275¢ a share. It has also declared a special dividend of 100¢ a share. Wesfarmers fell 1.8 per cent, Aristocrat Leisure was down 1.1 per cent and Harvey Norman slipped 2.5 per cent. Australia's tech sector was underperforming the market, down 0.4 per cent as TechnologyOne sank almost 2.9 per cent to $39.18 and Xero lost 3 per cent. Gold miners took a breather as the precious metal eased around 1.5 per cent to $US3437.1 ($5269) an ounce. The lowdown The Australian sharemarket has made a bright start to the week ahead of Tuesday's Reserve Bank decision, with financial markets expecting the central bank to deliver the third cut in official interest rates this year. The top 200 briefly hit 8852.3, topping last week's intraday record of 8848.8 amid high expectations of a cut, Moomoo market strategist Michael McCarthy said. 'What many analysts seem to overlook is that just because the RBA [Reserve Bank of Australia] can cut doesn't mean it will cut,' he said. 'While core inflation at 2.7 per cent gives the RBA room to move, an unemployment rate of 4.3 per cent means it's not under any pressure to do so.' A refusal to cut on Tuesday could have a significant impact on the share market, McCarthy said. 'We expect the RBA to cut the cash rate by 25 basis points next week to 3.6 per cent... The overall tone of the statement will likely be neutral with a dovish lean,' Citi analysts wrote in a note. All eyes will be on Tuesday's decision as earnings season is hitting its stride, with CBA, Seven West, AGL, IAG, Suncorp, Telstra, Cochlear and Origin among companies reporting this week. Meanwhile, options traders are using currencies such as the Australian dollar and euro to express bearish US dollar views after recent disappointing American economic data. The Aussie is being supported by the Reserve Bank's 'cautious and gradual' stance on easing, as well as improving risk sentiment. The euro's allure has grown from expectations an increase in regional defence spending will support the euro-zone economy, and a more hawkish-sounding European Central Bank. Meanwhile, things look rockier for the US dollar as data showed jobs growth missed expectations in July with downward revisions to prior months as well. Standard Chartered Bank has seen 'a lot of interest' in euro-US dollar and Australian dollar-US dollar call options after non-farm payrolls, according to Saurabh Tandon, global head of foreign-exchange options in Singapore. The market is focusing on upcoming events such as US inflation and the Federal Reserve's Jackson Hole symposium, he said. National Australia Bank has seen a pick-up in demand for bullish Australian dollar option wagers, as well as for those on the New Zealand dollar. 'Following the recent non-farm payrolls, we've observed significant activity in AUD/USD and NZD/USD short-dated call options, in anticipation of a busy data week, including the US CPI release and the RBA meeting.' said Con Davelis, Sydney-based head of FX options at the bank. On Friday, the S&P 500 rose 0.8 per cent, finishing just shy of the record it set last week. The benchmark index also wiped out its losses from a slide last week. The Dow Jones rose 0.5 per cent and the Nasdaq composite added 1 per cent to the all-time high it had set a day earlier. Technology companies, with their hefty stock values, did much of the heavy lifting for Wall Street. Nvidia rose 1.1 per cent and Apple gained 4.2 per cent. Gilead Sciences jumped 8.3 per cent for one of the market's biggest gains. It reported financial results that easily beat analysts' forecasts, while also raising its earnings forecast for the year. Expedia Group rose 4.1 per cent after also reporting encouraging financial results. Loading They are among the final big batch of companies within the S&P 500 to report mostly strong financial results for the second quarter. Still, many have warned that current tariffs could cut into their profits. Financial sector stocks also helped drive the market higher. Bank of America gained 2.4 per cent and Mastercard rose 2.3 per cent. Elsewhere in the market, entertainment giant Paramount Skydance slid 10.5 per cent a day after the company was created by the closing of an $US8 billion ($12.3 billion) merger of Skydance and Paramount. Shares in rival Warner Bros. Discovery sank 8 per cent. The main focus throughout the week has been on President Donald Trump's trade war and its potential impact on the US economy, as well as the Federal Reserve's interest rate policy. Trump began imposing higher import taxes on dozens of countries on Thursday. Still, the market appeared to largely shrug off the latest tariff escalation. 'The S&P 500's rebound this week may highlight the extent to which the market is becoming numb to tariff headlines,' said Daniel Skelly, head of Morgan Stanley's wealth management market research and strategy team. The unknown path of the economy amid an unpredictable tariff policy has been the key reason for the Fed to hold its benchmark interest rate steady. Loading Fed chair Jerome Powell, though, has been under increasing pressure from Trump to cut interest rates. Policy decisions aren't made solely by the Fed chair. All 12 members of the Federal Open Market Committee vote on interest rate changes. Trump has an opportunity to exert more control over the Fed following his nomination of Stephen Miran to a vacancy on the Fed's board of governors. Miran is a top economic adviser to Trump and is a near-certain vote in support of lower interest rates. The Fed's last decision to hold interest rates steady included two votes to lower interest rates. Its next meeting is in September, and Wall Street is overwhelmingly betting that the central bank will cut interest rates by a quarter of a percentage point. Wall Street and the Fed will get more insight next week on inflation's temperature and the economy. The government will publish updates on inflation at both the consumer and wholesale levels, along with a report on retail sales.
