Oil prices hold gains ahead of US-China trade talks
Oil prices held on to last week's gains early on Monday as investors waited for U.S.-China trade talks to be held in London later in the day.
ADVERTISEMENT Brent crude futures were flat at $66.47 a barrel at 0008 GMT. U.S. West Texas Intermediate crude was trading up 1 cent at $64.59.
The prospect of a U.S.-China trade deal supported prices as three of Donald Trump's top aides were set to meet with counterparts in London on Monday for the first meeting of the U.S.-China economic and trade consultation mechanism.
The announcement on Saturday followed a rare Thursday call between the two countries' top leaders, with both under pressure to dial down tensions as China's export controls on rare earths disrupt global supply chains. Oil prices posted their first weekly gain in three weeks on the news.
A U.S. jobs report showing unemployment held steady in May appeared to increase the odds of a Federal Reserve interest rate cut, further supporting last week's gains. Inflation data from China on Monday morning will give a reading of domestic demand in the world's largest crude importer.
The economic data and the prospect of a trade deal that could support economic growth and increase demand for oil outweighed worries about increased OPEC+ supply after the group announced another big output hike for July on May 31.
ADVERTISEMENT HSBC expects OPEC+ to accelerate supply hikes in August and September, which are likely to raise downside risks to the bank's $65 per barrel Brent forecast from the fourth quarter of 2025, according to a research note on Friday. Capital Economics researchers said they believe this "new faster pace of (OPEC+) production rises is here to stay".
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Mint
20 minutes ago
- Mint
How Trump's trade war is supercharging fast fashion industry
Sydney, When US President Donald Trump introduced sweeping new tariffs on Chinese imports the goal was to bring manufacturing back to American soil and protect local jobs. However, this process of re-shoring is complex and requires years of investment and planning – far too slow for the world of ultra-fast fashion, where brands are used to reacting in weeks, not years. Many clothing companies started to move production out of China during Trump's first term. They relocated to countries such as Vietnam and Cambodia when the initial China-specific tariffs hit. This trend accelerated with the newer 'reciprocal' tariffs. Instead of re-shoring production, many fashion brands are simply sourcing from whichever country offers the lowest total cost after tariffs. The result? The ultra-fast fashion machine adapted quickly and became even more exploitative. From Guangzhou to your wardrobe in days Platforms such as Shein and Temu built their success by offering trend-driven clothing at shockingly low prices. A USD 5 dress or USD 3 top might seem like a bargain, but those prices hide a lot. Much of Shein's production takes place in the so-called 'Shein village' in Guangzhou, China, where workers often sew for 12–14 hours a day under poor conditions to keep pace with the demand for new items. When the US cracked down on Chinese imports, the intention was to make American-made goods more competitive. This included raising the tariff on Chinese goods as high as 145 per cent , and closing the 'de minimis' loophole, which had allowed imports under USD 800 to enter tariff-free. But these tariffs did not halt ultra-fast fashion. They just rerouted production to countries with lower tariffs and even lower labour costs. The Philippines, with a comparatively low tariff rate of 17 per cent, emerged as a surprising alternative. However, the country can't provide the industrial scale and infrastructure to match what China can offer. So why does Australia matter? Much of the cheap fashion previously bound for the US is now flooding other markets, including Australia. Australia still allows most low-value imports to enter tax-free, and platforms such as Shein and Temu have taken full advantage. Australian consumers are among the most frequent Shein and Temu buyers per capita globally. Just 3 per cent of clothing is made in Australia and most labels rely on offshore manufacturing. This makes Australia an ideal target market for ultra-fast fashion imports. We have high purchasing power, lenient import rules and strong demand for low-cost style, especially due to the cost-of-living crisis. The hidden costs of cheap clothes The environmental impact of fast fashion is well known. However, amid the chaos of Trump's tariff announcements, far less attention has been paid to how these policies – together with the retreat from climate commitments – worsen environmental harms, including those linked to fast fashion. The irony is that the tariffs meant to protect American workers have, in some cases, worsened conditions for workers elsewhere. Meanwhile, consumers in Australia now benefit from faster delivery of even cheaper goods as Temu, Shein and others have improved their shipping capabilities to Australia. Australian consumers send more than 200,000 tonnes of clothing to landfill each year. But the deeper problem is structural. The entire business model is built on exploitation and environmental damage. Factory workers bear the brunt of cost-cutting. In the race to stay competitive, many manufacturers reduce wages and overlook hazardous working conditions. Will ethical fashion ever compete? Fixing these problems will require a global rethink of how fashion operates. Governments have a role in regulating disclosures about supply chains and enforcing labour standards. Brands need to take responsibility for the conditions in their factories, whether directly owned or outsourced. Transparency is essential. Alternatives to fast fashion are gaining traction. Clothing rentals are emerging as a promising business model that help build a more circular fashion economy. Charity-run op shops have long been a sustainable source of second-hand clothing. Australia's new Seamless scheme seeks to make fashion brands responsible for the full life of the clothes they sell. The aim is to help people buy, wear and recycle clothes in a more sustainable way. Consumers also matter. If we continue to expect clothes to cost less than a cup of coffee, change will be slow. Recognising that a USD 5 t-shirt has hidden costs, borne by people on the factory floor and the environment, is a first step. Some ethical brands are already showing a better way and offer clothes made under fairer conditions and with sustainable materials. These clothes are not as cheap or fast, but they represent a more conscious alternative especially for consumers concerned about synthetic fibres, toxic chemicals and environmental harm. Trump reshuffled the deck, but did not change the game Trump's trade rules aim to re-balance global trade in favour of American industry, yet have cost companies more than USD 34 billion in lost sales and higher costs. This cost will eventually fall on US consumers. In ultra-fast fashion, it mostly exposed how fragile and exploitative the system already was. Today, brands such as Shein and Temu are thriving in Australia. But unless we address the systemic inequalities in fashion production and rethink the incentives that drive this market, the true cost of cheap clothing will continue to be paid by those least able to afford it. PY PY This article was generated from an automated news agency feed without modifications to text.
Time of India
43 minutes ago
- Time of India
Power shift: How Tesla's turmoil is steering global capital towards India
EV calculator How much will I save if I choose an electric vehicle? SELECT vehicle type Calculate India's EV Ecosystem: Charging Ahead as Tesla Slows Down Live Events Supply Chain and Clean-Tech Investment: India as the Next Global Pivot Disruption for Some, Direction for Others (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel In the high-stakes arena of global business and politics, few collisions make markets tremble like the fallout between a tech titan and a political juggernaut. This is exactly what unfolded in early June 2025 when Elon Musk , the CEO of Tesla and SpaceX, clashed publicly with former U.S. President Donald Trump . The result? This was a devastating blow to Tesla's stock, which plunged by over 14% in a single day, wiping out an estimated $150 billion in market capitalisation. This was not just a stock market blip; it was the most severe single-day loss for Tesla since its listing and one of the most dramatic wealth erasures in corporate catalyst? Trump's verbal attacks on Musk during a campaign rally, accusing him of being "disloyal" and threatening to cut off federal contracts and regulatory support for Tesla and SpaceX if he regains the presidency, were also included. Investors responded with a swift selloff, and Tesla's valuation fell below the trillion-dollar mark. Global markets watched in shock as this political-personal feud spilled over into financial amid this volatility lies a powerful truth: in global disruption, emerging markets like India often find their greatest opportunities. As the U.S. grapples with political instability and tech industry turbulence, India stands poised to benefit from capital reallocation, tech realignment, and supply chain diversification. While damaging to U.S. markets, the Tesla shockwave could become a springboard for India's clean-tech and high-growth has been on an accelerated path toward electrification, and Tesla's current struggles have only sharpened the global spotlight on India's domestic electric vehicle (EV) ecosystem. As Tesla faces regulatory headwinds and reduced investor confidence, India's homegrown EV sector is booming, powered by market demand and policy the fiscal year 2024–25, India's EV market crossed a new milestone with over 1.7 million electric vehicles sold, reflecting a 96% year-on-year increase. Leading the charge are Indian companies such as Tata Motors, Mahindra Electric, and Ola Electric, which have committed billions of rupees to expand their EV product lines, charging infrastructure, and battery assembly Indian government's Faster Adoption and Manufacturing of Hybrid and Electric Vehicles(FAME-II) scheme and the Production-Linked Incentive (PLI) Scheme for Advanced Chemistry Cell Battery Storage worth ₹18,100 crore have further catalysed industry momentum. States such as Tamil Nadu, Gujarat, and Maharashtra have introduced EV-specific policies offering land, tax exemptions, and power subsidies to manufacturers. As global investors rethink high-risk bets in politically volatile environments such as the U.S., they are increasingly drawn to India's policy stability, market scale, and rising consumer at Morgan Stanley and Goldman Sachs recently highlighted India's EV sector as a 'structural investment theme' for the next decade. Tesla's hiccups may prompt global auto majors to partner with or invest in Indian EV startups as a hedge against Western uncertainty, creating an entirely new lane for India's industrial valuation collapse was not just a corporate crisis; it exposed the deeper fragility of global supply chains tethered to geopolitical risks. Tesla's core supply lines depend heavily on rare earth elements (REEs), lithium, and semiconductors, many of which are sourced from China, South America, or politically sensitive U.S.–China tensions rising and Trump threatening tighter trade policies, the world's clean energy future needs new anchors—and India is stepping into that vacuum. In response to the rising global demand and strategic concerns, India unveiled its Critical Minerals Strategy (2023), identifying 30 minerals, including lithium, cobalt, and nickel, as essential for national security and industrial Geological Survey of India discovered a significant 5.9-million-ton lithium reserve in Jammu and Kashmir—India's first—and auction processes are already underway for its commercial extraction. Meanwhile, India's semiconductor manufacturing mission—backed by a ₹76,000 crore incentive package—has begun bearing fruit. Micron Technology, in collaboration with Tata Group, is establishing chip assembly and testing units in Gujarat. These developments are being closely monitored by global players looking to diversify away from China and the U.S. India's proven IT prowess, skilled workforce, and competitive cost structures provide it with a unique advantage in scaling both battery and semiconductor supply to BloombergNEF, global clean energy investments are expected to cross $2 trillion in 2025, and India is projected to attract nearly $60 billion, up from $45 billion in 2024. The Tesla–Trump debacle added urgency to this diversification. Indian companies working in battery storage, solar inverters, EV components, and green hydrogen can now tap into redirected global capital that would have otherwise flown into American India's space technology sector, often overlooked, is quietly booming. As Trump's remarks also targeted SpaceX and its satellite network Starlink, Indian startups like Skyroot Aerospace, Agnikul Cosmos, and Pixxel are seizing the moment to attract international investments. With 30 private satellite launches scheduled for 2025 and a supportive government ecosystem, India's space economy could grow to $13 billion by 2026, up from $7 billion in 2022, according to the Musk–Trump standoff may have caused a ripple of fear in U.S. markets, but for India, it is a signal to act. As Western investors reassess the risks of politicised corporate battles, India offers a pragmatic alternative rooted in stable policy, scalable infrastructure, and strategic clarity. The Tesla fallout, while costly for America's most iconic EV brand, might accelerate India's emergence as a global industrial and investment powerhouse. In the wreckage of a $150 billion loss lies the blueprint for India's trillion-dollar contributors is Assistant Professor and Research Supervisor, St. Thomas College (Autonomous), Thrissur – Kerala.
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First Post
an hour ago
- First Post
US and China to hold trade talks in London focusing on export controls
In the second round of trade talks today in London, the United States and China are set to be focussed on export controls regarding critical technologies and rare earths instead of tariffs. read more US President Donald Trump and Chinese leader Xi Jinping are seen during an engagement on the sidelines of the G20 Summit in Osaka, Japan, in 2019. (Photo: Reuters) The United States and China will hold second round of trade talks in London on Monday. The focus is going to be on export controls instead of tariffs. In recent weeks, both the countries have sought to choke the other's access to critical supply chain elements that they dominate. While the Donald Trump administration has sought to restrict China's access to semiconductors, jet engines, and certain chemicals and machinery, China has restricted the supply of rare earths, which are critical to manufacture virtually everything from cars to fighter planes and electronic chips. STORY CONTINUES BELOW THIS AD Both the United States and China have accused the other of violating the trade truce reached last month. On May 12, the United States and China reached a truce and agreed to reduce tariffs by 115 per cent for 90 days so talks could continue. However, within days, the Trump administration tightened export controls regarding semiconductors. China responded by not relaxing rare earths' supplies that were halted in April. While Trump has said that China has 'totally' violated the truce and that Chinese leader Xi Jinping 'extremely hard' to make a deal with, China claimed that the United States had 'severely violated the common understandings reached in Geneva'. US-China trade talks to now focus on export controls Unlike the first round of talks in Switzerland's Geneva, the second round of talks in London will be focussed on export controls. The new focus comes as China's s stoppage rare earths supplies has threatened to bring manufacturing units in the United States and elsewhere, including India, to a halt, particularly in sectors like automobiles. This would be a major blow to Trump, who has championed revitalising the US manufacturing industry. The US delegation will be led by Treasury Secretary Scott Bessent but will also include Commerce Secretary Howard Lutnick. The inclusion of Lutnick, who was not part of talks in Geneva and oversees the US export control regime, reinforces the understanding that talks will be focussed on export controls instead of tariffs. The Chinese delegation will be led by He Lifeng, the vice premier for economic policy who also led the delegations in Geneva. While American negotiators are expected to press for China to relax curbs on the export of rare earths, Chinese officials are expected to press for the removal of US curbs on China's access to semiconductors, jet engines, and other critical technologies, according to Wall Street Journal. There are signs that the two sides may be headed towards achieving an understanding that makes way for an off-ramp. Even though they have accused each other of violating the spirit of talks, Trump said ahead of Monday's talks that conversations with China 'very far advanced' and described a phone call with Xi last week as 'very good' and said 'there should no longer be any questions respecting the complexity of rare-earth products'. STORY CONTINUES BELOW THIS AD In what is seen as a goodwill gesture, China on Saturday said it had granted a number of export licences related rare earths. 'Up until the phone call, both sides were spiraling toward uncontrolled supply-chain warfare. I think the administration played this card to get China to re-engage and back off the magnet restrictions,' Jimmy Goodrich, a China and technology expert and senior adviser to Rand, told Journal.
