CNA Correspondent - Why the world can't quit the US despite the highest trade tariffs in decades
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CNA
21 minutes ago
- CNA
European countries announce US$1b purchase of US weapons for Ukraine under new NATO plan
STOCKHOLM: The Netherlands, Sweden, Norway and Denmark will purchase US$1 billion worth of American weapons to support Ukraine's defence against Russia, the countries said on Tuesday (Aug 5), marking the first round of spending under a new NATO initiative. The agreement was made through the Prioritised Ukraine Requirements List (PURL), a mechanism launched last month by US President Donald Trump and NATO Secretary General Mark Rutte to streamline allied defence support for Kyiv. Washington is releasing weapons and military equipment for Ukraine from its stockpiles in US$500 million tranches. HALTING RUSSIAN ADVANCES The Dutch government announced a €500 million (US$577 million) purchase from US stockpiles, including parts for the Patriot missile system. The three Scandinavian countries will jointly donate US$500 million in military aid, with Sweden contributing US$275 million. "By supporting Ukraine with determination, we are increasing the pressure on Russia to negotiate," Dutch Defence Minister Ruben Brekelmans said in a post on X, calling near-daily Russian airstrikes 'pure terror.' "The more Russia dominates Ukraine, the greater the danger to the Netherlands and our NATO allies,' he said. Swedish Defence Minister Pal Jonson said Ukraine was fighting for 'our security' as well as its own. Stockholm said its donation would include air defence systems, Patriot munitions, anti-tank weapons, ammunition and spare parts. ZELENSKY, TRUMP SPEAK AHEAD OF DEADLINE Ukrainian President Volodymyr Zelensky welcomed the new commitments, calling them 'a very strong initiative that significantly boosts our ability to protect lives.' 'These steps are a new, real foundation for long-term security across all of Europe. Russia will never turn Europe into a continent of war,' he said. Zelensky said he spoke with Trump on Tuesday, three days ahead of a deadline the US president set for Russia to offer a proposal to end the war. In a post on social media, Zelensky said the two discussed sanctions and 'bilateral defence cooperation,' without providing details. NATO PRAISES SPEED OF SUPPORT Rutte praised the Netherlands as the first country to announce funding under the new scheme and welcomed the Scandinavian support.
International Business Times
an hour ago
- International Business Times
Wall Street and Global Markets Rise as Weak Jobs Data Fuels Fed Cut Expectations
Global markets climbed for a second consecutive day on Tuesday, on optimism that the U.S. Federal Reserve could cut rates as early as next month. U.S. futures were trading higher, with the Dow Jones Industrial Average up 0.3%, the S&P 500 gaining 0.4%, and Nasdaq up by 0.4%. freepik In Europe, the STOXX 600 index was up 0.4% in early trade, while Asia's MSCI Asia-Pacific index outside Japan advanced 0.8%. South Korea's KOSPI jumped 0.8%, while Japan's Nikkei slipped 1.6%, partly due to a stronger yen. Chinese blue-chip stocks stayed flat. US markets rallied Monday as investors took favorably to better-than-expected earnings and rising expectations of a September rate cut. The optimism was due to a weaker job data report released on Friday that showed slowing growth of the US economy, leading to expectations that the Fed would step in to support the economy. Trade Moves by Trump Alarm Geopolitical Leaders US President Donald Trump Threatens To Increase India's Tariffs In Response To Ongoing Oil Trade With Russia. India strongly condemned the criticism and said it would continue to defend its economic interests. Trump also created a stir when he dismissed the head of the U.S. Bureau of Labor Statistics, which produces the jobs report. The announcement prompted questions about the politicization of government data and followed a lackluster jobs report on Friday. Compounding the unease is that Trump has the chance to nominate a new Federal Reserve governor after Democrat Adriana Kugler stepped down early from the Fed. Some analysts fear the development could impair future Fed decisions, with Trump already badgering Fed Chair Jerome Powell to cut rates. Investors Focus on Central Banks and Earnings. Expectations for a September rate cut now stand at 94%, up from 63% in late July, according to the CME FedWatch Tool. The Bank of England is also forecast to reduce interest rates this week, even as inflation remains stubbornly high in the UK. Investors also have earnings from Disney and Caterpillar to digest. On Monday, tech stocks like Nvidia, Alphabet, and Meta boomed. The AI tools supplier also upped its full-year revenue guidance on the back of strong demand. Commodities and Currency Market Update The dollar index was up 0.34%, having stabilized after two straight days of declines. The single currency was down 0.25% to $1.1543, and the dollar strengthened to 147.6 yen. OPEC+ supply boost sends Brent crude oil down 1% at $68.05 per barrel. Bitcoin inched 0.6% lower to $114,235, with gold bouncing back from profit-taking selling to trade just behind the precious metal at $3,375 per ounce.
CNA
an hour ago
- CNA
US to initially impose 'small tariff' on pharma imports, Trump says
WASHINGTON: President Donald Trump said on Tuesday (Aug 5) that the United States would initially impose a "small tariff" on pharmaceutical imports before raising it to 150 per cent within 18 months and eventually to 250 per cent, in a move aimed at boosting domestic production. "In one year, one and a half years maximum, it's going to go to 150 per cent and then it's going to go to 250 per cent because we want pharmaceuticals made in our country," Trump told CNBC in an interview. He did not specify the initial tariff rate, though he previously suggested in February that pharmaceutical and semiconductor tariffs would start at "25 per cent or higher", with substantial increases over the course of a year. Last month, he said tariffs on pharmaceutical imports could rise as high as 200 per cent. CHIP TARIFFS PLANNED NEXT Trump also said on Tuesday he plans to announce tariffs on semiconductors and chips in the 'next week or so,' but did not provide further details. The United States has been conducting a national security review of the pharmaceutical sector, and the industry has been bracing for the possibility of sector-specific tariffs. The administration has not announced when the results of that investigation will be released. DRUGMAKERS BOOST US INVESTMENTS Several pharmaceutical companies have pledged multibillion-dollar investments in US manufacturing as Trump continues to threaten import duties. AstraZeneca recently committed US$50 billion to expanding its operations in the United States. PhRMA, the main lobbying group for the pharmaceutical industry, did not immediately respond to a request for comment.
