Dow drops 200 points as U.S.-China trade tensions and tariff fears rattle markets
Markets opened June with renewed volatility as global trade tensions resurfaced, dragging the Dow Jones Industrial Average down 200 points. The S&P 500 slipped 0.2%, while the Nasdaq remained mostly flat.
The downturn came as U.S.-China relations grew strained. China rejected U.S. claims of violating a temporary trade agreement and countered that Washington failed to uphold its commitments. This dispute follows recent talks in Geneva that temporarily paused tariffs. A direct call between President Donald Trump and Chinese President Xi Jinping is expected this week.
'This back-and-forth could prolong volatility, but a clear resolution could drive markets to new highs,' said Jay Woods, Chief Global Strategist at Freedom Capital Markets.
U.S.-EU tensions also flared after Trump announced plans to double steel tariffs to 50%, prompting an EU warning that such moves raise costs and sow economic uncertainty.
Steelmakers rallied sharply in response: Cleveland-Cliffs surged 25%, while Steel Dynamics and Nucor jumped nearly 10%.
Meanwhile, economic data showed continued weakness. U.S. manufacturing contracted for the second month, with the ISM index at 48.5%, and construction spending fell 0.4% in April.
JPMorgan analysts warned that the full impact of tariffs—especially on inflation and growth—has yet to hit, noting a possible slowdown in consumer activity and rising prices in the months ahead.
Adding to the market pressure, shares of Flutter Entertainment and DraftKings fell after Illinois passed a higher sports betting tax, which analysts say could push users to illegal markets and lead to similar hikes in other states.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India Today
31 minutes ago
- India Today
Shein, Reliance aim to sell India-made clothes globally within a year: Report
The companies are now racing to expand their network of Indian garment manufacturers from 150 to 1,000 by mid-2026. (Photo: Reuters) Shein and Reliance Retail plan to make India a global fast fashion manufacturing hub Aim to export Shein clothes from India to US and UK within 6-12 months Target to increase Indian garment makers from 150 to 1,000 by mid-2026 Shein and Reliance Retail are working on an ambitious plan to transform India into a global manufacturing base for fast fashion, reported news agency Reuters. The aim is to make Shein-branded clothes in India not just for local sales but also for international markets, starting with the US and UK, within the next 6 to 12 months, added the report, citing two people familiar with the discussions. The China-founded, Singapore-headquartered fashion giant has partnered with Mukesh Ambani's Reliance Retail to scale up operations in India, in a strategic pivot driven partly by US tariffs on Chinese goods. The companies are now racing to expand their network of Indian garment manufacturers from 150 to 1,000 by mid-2026, the sources said. The Shein-Reliance collaboration is part of a broader global shift in supply chains, as fashion retailers look to diversify beyond China. 'Shein has licensed its brand for domestic use to Reliance which is responsible for manufacturing, supply chain, sales and operations in the Indian market,' the company told Reuters in a statement. Reliance did not comment on the matter. Shein first entered India in 2018, but its app was banned in 2020 during a broader crackdown on Chinese-linked apps amid border tensions. The brand re-entered in February 2025 through a licensing deal with Reliance Retail, which now operates Unlike Shein's global sites, which rely heavily on Chinese suppliers, the Indian portal sells clothes made locally. Since relaunch, the Shein India app has been downloaded 2.7 million times across iOS and Android platforms, with monthly growth averaging 120%, according to Sensor Tower. However, the offerings are still modest. Around 12,000 designs are available compared to over 600,000 on Shein's US site. Prices remain ultra-competitive, with the cheapest women's dresses listed at Rs 349 ($4), only slightly higher than US prices due to local production costs. The push to export Indian-made fashion is part of a larger goal to adopt Shein's rapid, on-demand manufacturing model. Reliance executives have been working closely with suppliers to trial small production runsâ€'sometimes as few as 100 pieces per designâ€'and scale up only for styles that perform well, added the news agency's report. To achieve this, Reliance is also looking to build capabilities in areas where India currently lacks edge, particularly synthetic fabric manufacturing. 'The firm will invest in suppliers and help them grow which in turn will help the Shein-Reliance partnership go global,' the sources told Reuters. The plan is to begin offering India-made Shein garments on its US and UK platformsâ€'two of its largest marketsâ€'marking a sharp break from the company's traditional China-first sourcing strategy. The timeline is still fluid, the sources said, and hinges on how quickly Reliance can ramp up its supplier network. Union Minister of Commerce and Industry, Piyush Goyal, had hinted at this pivot in Parliament late last year, saying the Shein-Reliance deal was designed to 'create a network of Indian suppliers of Shein-branded clothes for sale domestically and globally.' Shein, which generated over $30 billion in annual revenue through aggressive pricing and marketing, currently works with more than 7,000 suppliers in China. With this new venture, India is being positioned as a manufacturing alternativeâ€'potentially turning the country into a key node in global fast fashion supply chains. For Reliance, the Shein partnership is one among several in fashion retail. The conglomerate already runs Ajio and has deals with international brands including Brooks Brothers and Marks & Spencer. It competes aggressively with Amazon, Flipkart and value retailers like Tata's Zudio Shein and Reliance Retail are working on an ambitious plan to transform India into a global manufacturing base for fast fashion, reported news agency Reuters. The aim is to make Shein-branded clothes in India not just for local sales but also for international markets, starting with the US and UK, within the next 6 to 12 months, added the report, citing two people familiar with the discussions. The China-founded, Singapore-headquartered fashion giant has partnered with Mukesh Ambani's Reliance Retail to scale up operations in India, in a strategic pivot driven partly by US tariffs on Chinese goods. The companies are now racing to expand their network of Indian garment manufacturers from 150 to 1,000 by mid-2026, the sources said. The Shein-Reliance collaboration is part of a broader global shift in supply chains, as fashion retailers look to diversify beyond China. 'Shein has licensed its brand for domestic use to Reliance which is responsible for manufacturing, supply chain, sales and operations in the Indian market,' the company told Reuters in a statement. Reliance did not comment on the matter. Shein first entered India in 2018, but its app was banned in 2020 during a broader crackdown on Chinese-linked apps amid border tensions. The brand re-entered in February 2025 through a licensing deal with Reliance Retail, which now operates Unlike Shein's global sites, which rely heavily on Chinese suppliers, the Indian portal sells clothes made locally. Since relaunch, the Shein India app has been downloaded 2.7 million times across iOS and Android platforms, with monthly growth averaging 120%, according to Sensor Tower. However, the offerings are still modest. Around 12,000 designs are available compared to over 600,000 on Shein's US site. Prices remain ultra-competitive, with the cheapest women's dresses listed at Rs 349 ($4), only slightly higher than US prices due to local production costs. The push to export Indian-made fashion is part of a larger goal to adopt Shein's rapid, on-demand manufacturing model. Reliance executives have been working closely with suppliers to trial small production runsâ€'sometimes as few as 100 pieces per designâ€'and scale up only for styles that perform well, added the news agency's report. To achieve this, Reliance is also looking to build capabilities in areas where India currently lacks edge, particularly synthetic fabric manufacturing. 'The firm will invest in suppliers and help them grow which in turn will help the Shein-Reliance partnership go global,' the sources told Reuters. The plan is to begin offering India-made Shein garments on its US and UK platformsâ€'two of its largest marketsâ€'marking a sharp break from the company's traditional China-first sourcing strategy. The timeline is still fluid, the sources said, and hinges on how quickly Reliance can ramp up its supplier network. Union Minister of Commerce and Industry, Piyush Goyal, had hinted at this pivot in Parliament late last year, saying the Shein-Reliance deal was designed to 'create a network of Indian suppliers of Shein-branded clothes for sale domestically and globally.' Shein, which generated over $30 billion in annual revenue through aggressive pricing and marketing, currently works with more than 7,000 suppliers in China. With this new venture, India is being positioned as a manufacturing alternativeâ€'potentially turning the country into a key node in global fast fashion supply chains. For Reliance, the Shein partnership is one among several in fashion retail. The conglomerate already runs Ajio and has deals with international brands including Brooks Brothers and Marks & Spencer. It competes aggressively with Amazon, Flipkart and value retailers like Tata's Zudio Join our WhatsApp Channel
Time of India
37 minutes ago
- Time of India
Starbucks lowers prices in China as rivals brew up discount war
Starbucks China will lower the prices of some of its iced drinks by an average of 5 yuan ($0.70) across the country, the company announced on Monday, as competition intensifies and consumers become more cautious about spending. In a post on its Weixin social media account, the U.S. coffee chain said it would offer more "accessible" prices on dozens of its drinks, including non-coffee drinks and the Frappuccino, from Tuesday. While China is Starbucks' second-largest market after the U.S., the coffee market is highly competitive and consumers have become more cautious about spending because of the slowing economy and concerns about job security. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Canada is looking for skilled immigrants - New job opportunities are waiting for you! Canada Immigration Express Apply Now Undo The new approach means some of Starbucks' drinks will be priced as low as 23 yuan, the post said. Also Read: More than 1,000 Starbucks baristas go on strike to protest new dress code Live Events Domestic rivals such as Luckin Coffee and Cotti have priced their drinks as low as 9.9 or even 8.8 yuan, while deep-pocketed internet companies and Alibaba Group have entered the food delivery market, adding to the competition. With offers and vouchers, Chinese coffee consumers can buy themselves a drink for as little as 2.9 yuan. A person close to Starbucks, said the company was not reducing prices in response to intense price competition, but looking to attract more customers in the afternoon. The individual requested anonymity as they were not in a role that allowed them to comment to the media. "Starbucks likely has a longer-term strategy, which is to focus on the demand for non-coffee items in the afternoon among consumers," the source said. Starbucks had said previously that it would not engage in a price war. However, it has also introduced smaller-sized drinks and issued coupons which have lowered prices for customers The U.S. giant has also been looking to revive its business in China via selling stakes in the business.
Time of India
an hour ago
- Time of India
Rednote joins wave of Chinese firms releasing open-source AI models
China's Rednote , one of the country's most popular social media platforms, has released an open-source large language model , joining a wave of Chinese tech firms making their artificial intelligence models freely available. The approach contrasts with many U.S. tech giants like OpenAI and Google, which have kept their most advanced models proprietary, though some American firms including Meta have also released open-source models. Open sourcing allows Chinese companies to demonstrate their technological capabilities, build developer communities and spread influence globally at a time when the US has sought to stymie China's tech progress with export restrictions on advanced semiconductors. Rednote's model, called is available for download on developer platform Hugging Face. A company technical paper describing it was uploaded on Friday. In coding tasks, the model performs comparably to Alibaba 's Qwen 2.5 series, though it trails more advanced models such as DeepSeek-V3, the technical paper said. Live Events RedNote, also known by its Chinese name Xiaohongshu, is an Instagram-like platform where users share photos, videos, text posts and live streams. The platform gained international attention earlier this year when some U.S. users flocked to the app amid concerns over a potential TikTok ban. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories The company has invested in large language model development since 2023, not long after OpenAI's release of ChatGPT in late 2022. It has accelerated its AI efforts in recent months, launching Diandian, an AI-powered search application that helps users find content on Xiaohongshu's main platform. Other companies that are pursuing an open-source approach include Alibaba which launched Qwen 3 , an upgraded version of its model in April. Earlier this year, startup DeepSeek released its low-cost R1 model as open-source software, shaking up the global AI industry due to its competitive performance despite being developed at a fraction of the cost of Western rivals.
