Millions of Americans are set to be 'punished' by hidden tax trap
They did all the work - saved for a down payment, purchased a home, paid the mortgage - then waited for the home value to grow. It's the quintessential American dream.
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ITV News
9 minutes ago
- ITV News
Trump's 25% tariff on India exposes cracks in Modi friendship and threatens economic growth
In his latest diplomatic broadside, Donald Trump's decision to slap a 25% tariff on key Indian exports - combined with a provocative tweet teasing a new trade deal with Pakistan - has triggered not only economic alarm in India but also political unease for Prime Minister Narendra Modi, whose once-touted personal rapport with Trump now appears to be under strain. 'India has been taking advantage of the US for far too long. Time for a level playing field. New deal with Pakistan coming soon. Much fairer," the US President posted on Truth Social earlier this week. '25% tariff now live on Indian medical imports. American jobs matter more than cheap Indian drugs. Too much going to Russia, not fair to us!' The sudden tariff hike, targeting Indian pharmaceuticals, medical devices, and textiles, comes amid simmering friction between the two countries and has sent shockwaves through both the Indian diplomatic and business communities. India's Ministry of Commerce & Industry responded cautiously, saying it had 'taken note' of the US President's remarks and was 'studying their implications.' The ministry reaffirmed India's ongoing commitment to concluding a 'fair, balanced, and mutually beneficial' bilateral trade agreement with Washington. Indian business leaders, however, have not held back. Harsh Vardhan Agarwal, President of the Federation of Indian Chambers of Commerce and Industry (FICCI), called the tariff imposition 'disappointing,' warning it would dent export performance and undermine the hard-won trust between the two economies. 'This move is unfortunate and will undoubtedly impact our exporters,' Mr Agarwal said. 'We still believe the two countries can arrive at a comprehensive trade deal that benefits both sides.' Adding to New Delhi's discomfort is Trump's recent and controversial claim that he helped mediate a ceasefire during the latest flare-up on the borders, a statement India has neither confirmed nor directly rebutted. The ambiguity has invited criticism in India. What has made the situation more politically volatile is Prime Minister Modi's long-standing public embrace of Trump. Their joint appearances at 'Howdy Modi' in Houston and 'Namaste Trump' in Ahmedabad were projected as symbols of a thriving personal and strategic alliance. That narrative is now under scrutiny. With Trump turning publicly confrontational, India's opposition parties have pounced. They are demanding that Modi push back against Trump's remarks on the ceasefire and take a firmer line against the tariffs, accusing the government of compromising national dignity for diplomatic optics. Meanwhile, the Indian medical and pharmaceutical sectors, among the worst affected, have voiced strong objections. Dilip Kumar, Chairman of the Medical Tourism division at the Chamber of Commerce, told Indian media that Trump was attempting to 'kill the market of the Indian economy.' 'But that's not going to happen,' Mr Kumar said. 'The American market is dependent on Indian and Chinese suppliers. The real losers will be the US patients, not Indian exporters.' He added that India would now look to strengthen its trade relationships with Europe and other regions. 'We are resilient. We survive and bounce back - even in the toughest times.' For New Delhi, the challenge now is how to safeguard its economic interests without triggering an open confrontation, especially with a leader who rarely pulls his punches, even with friends.
The Guardian
10 minutes ago
- The Guardian
Trump extends deadline for tariff deal with Mexico by another 90 days
Donald Trump has extended the deadline for a tariff deal with Mexico by another 90 days, fuelling speculation that he could announce pauses for dozens of other countries that face punitive higher import duties from Friday. As the countdown continues to his deadline for a trade deal – already extended by four weeks from the original 90 days – the US president said he had made the decision to offer more time to Mexico because of the complexities of the trading relationship. 'We will be talking to Mexico over the next 90 Days with the goal of signing a Trade Deal somewhere within the 90 Day period of time, or longer,' he wrote on social media. A little more than two weeks ago Trump threatened both the EU and Mexico with tariffs of 30% on most exports to the US, but last Sunday he concluded a deal with Brussels with a 15% baseline rate from 1 August. Writing on his Truth Social platform, Trump said: 'I have just concluded a telephone conversation with the President of Mexico, Claudia Sheinbaum, which was very successful in that, more and more, we are getting to know and understand each other. 'The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border. 'We have agreed to extend, for a 90 Day period, the exact same Deal as we had for the last short period of time, namely, that Mexico will continue to pay a 25% Fentanyl Tariff, 25% Tariff on Cars, and 50% Tariff on Steel, Aluminum, and Copper.' Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion More details soon …
Reuters
10 minutes ago
- Reuters
Cigna's health services business powers Q2 earnings beat
July 31 (Reuters) - Cigna (CI.N), opens new tab beat Wall Street estimate for second-quarter profit on Thursday, helped by strength in its pharmacy benefit management business. The company was among the last major health insurers to report quarterly results, in a period marked by high medical costs in government-backed plans. Cigna, however, was able to shield itself from the broader industry trend as it divested its Medicare business to Health Care Service Corp and relies more on pharmacy benefits and fee-based commercial insurance. The company has intentionally structured its portfolio to suit current conditions, CEO David Cordani said on a post-earnings call. "We have no exposure to Medicaid or Medicare, instead choosing to serve these customers through our Evernorth services portfolio." Medicaid plans are for low-income people, while Medicare Advantage is for people aged 65 and older or with disabilities. Revenue from Cigna's Evernorth healthcare services unit, which includes its pharmacy benefit management business, rose 17% to $57.83 billion during the quarter. Pharmacy benefit managers help negotiate drug prices and coverage with manufacturers on behalf of employers and health plan clients. But the company also said it expects costs to remain elevated throughout the year and into next year, and has priced 2026 accordingly. It reported a medical care ratio — the percentage of premiums spent on medical care — of 83.2% during the quarter, higher than the 82.3% a year ago. Cigna attributed the rise to higher stop-loss medical costs, which protect employers from large claims. Shares of the company dropped 6% in morning trading. Baird analyst Michael Ha said the stock dip may reflect stop-loss concerns, but called the reaction "overdone". Cigna forecast 2025 medical care ratio to be between 83.2% and 84.2%, with the third-quarter ratio expected to be toward the upper end of that range. Its second-quarter adjusted per-share profit of $7.20 topped analysts' estimate of $7.15, according to data compiled by LSEG. The company maintained its annual adjusted profit forecast of at least $29.60 per share, while analysts expect $29.68 per share.
