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Egypt Independent
4 days ago
- Business
- Egypt Independent
The US and Europe are still doing billions of dollars' worth of business with Russia despite years of war
US President Donald Trump is threatening an additional 25% tariff on India as well as higher tariffs on other countries that buy Russian oil, in an attempt to pressure Moscow to end the war in Ukraine. But the United States and Europe themselves are still doing billions of dollars in trade with Russia – although that's a fraction of the trade that took place before the war. India has argued that it's being unfairly targeted with the tariff increase, calling it 'unjustified' given that other nations also do business with Moscow. Trade between Russia and the US has fallen by about 90% since the Kremlin launched its full-scale invasion of Ukraine, but last year, the US still imported $3 billion worth of goods from Russia, according to the latest data from the US Bureau of Economic Analysis (BEA) and Census Bureau. Meanwhile, the European Union – which has been the Americans' partner in sanctions against Russia – imported $41.9 billion (36 billion euros) of goods from Russia in 2024, data from the bloc's statistics agency shows. 'It's significant, but I think the more significant thing is how quickly the EU adjusted to reduce their dependency on Russia,' said Kimberly Donovan, director of the Economic Statecraft Initiative at the Atlantic Council, a DC-based think tank. 'They're making huge strides to further reduce how much they're getting from (Russia).' EU imports from Russia dropped by 86% between the first quarters of 2022 and 2025, according to Eurostat data. A view of a processing plant at the fertilizer company EuroChem VolgaKaliy, which is developing a potash deposit in Russia's Volgograd region, in September 2024. Kirill Braga/Reuters 'I do think that there is a lot of opportunity for the US and even the EU to increase our trade with countries like Canada and get the products that we need from them,' Donovan added. 'That's where the trade wars and the negotiations over tariffs are really throwing things for a loop and are reducing our ability to be strategic in how we're approaching the Russia problem.' As Trump prepares to meet Russian President Vladimir Putin in Alaska Friday, a top US official warned that India could see more tariffs coming their way if the talks don't go well. 'We've put secondary tariffs on the Indians for buying Russian oil. And I can see if things don't go well, then sanctions or secondary tariffs could go up,' US Treasury Secretary Scott Bessent told Bloomberg. These are the areas where economic ties with Russia remain the strongest, for the US and Europe respectively. US trade with Russia: • Fertilizer: The US imported $927 million worth of fertilizer in the first half of this year, US Census Bureau data shows. Last year, fertilizer imports from Russia totaled more than $1 billion. The US particularly relies on Russia for imports of three types of chemical fertilizers: urea, urea ammonium nitrate (UAN) and potassium chloride muriate of potash, also called potash. 'Unless the US sanctions Russian fertilizer imports, as it does with Belarusian potash, this (level of trade) is likely to continue,' said Allan Pickett, head of fertilizer analysis at S&P Global Commodity Insights. 'Russia remains one of the most important global fertilizer suppliers and the influence of it has not diminished since 2022.' 'Urea and potash could be readily sourced from elsewhere, although with potash it would further increase US dependence on Canada, which currently has an interesting trade dynamic,' Pickett added. The Trump administration recently hiked tariffs on Canada to a minimum of 35% –unless goods are compliant with the terms of the US-Mexico-Canada free trade agreement – escalating ongoing trade tensions with its northern neighbor. • Palladium: Although palladium imports from Russia have reduced significantly since 2021, data shows that the US still imported $878 million worth of the metal in 2024 and $594 million worth in 2025, through June. The silvery metal is used in various electronic and industrial products and it's a key component in the catalytic converters of cars. • Uranium and plutonium: The US has imported $755 million worth of uranium and plutonium from Russia so far this year, according to Census data through June. It imported $624 million worth of those commodities from Russia in 2024. A ship carrying Russian liquefied natural gas (LNG) unloads gas in the port of Bilbao, Spain, on March 10, 2022. Vincent West/Reuters European trade with Russia: • Oil: Russia was the largest supplier of petroleum to the European Union prior to Moscow's full-scale invasion of Ukraine. The EU has since imposed a ban on maritime Russian oil imports, as well as refined oil products, like diesel. As a result, oil imports to Europe fell to $1.72 billion (1.48 billion euros) for the first quarter of 2025, down from $16.4 billion (14.06 billion euros) in the same quarter of 2021, according to the most recent data from Eurostat. The top European importers of Russian fossil fuels in July 2025 were Hungary, France, Slovakia, Belgium and Spain, according to an analysis by the Centre for Research on Energy and Clean Air, an international research organization. Hungary and Slovakia accounted for the vast majority of crude oil imports, according to the analysis, while the others import mostly liquefied natural gas. • Natural gas: The value of natural gas imports from Russia actually increased in the last four years as a result of price increases, growing to $5.23 billion (4.49 billion euros) in the first quarter of 2025, Eurostat data shows. However, the EU has slightly reduced Russia's market share of liquefied natural gas imports since 2021 – from 22% down to 19% in 2025 – while also greatly increasing the US market share. • Iron and steel: Russia's share of iron and steel imports in the EU has dropped sharply. Iron and steel imports amounted to $850 million (730 million euros) in the first quarter of 2025 – about half of what they were in the same quarter in 2021, according to Eurostat. • Fertilizer: Sanctions and import duties have not hit the fertilizer industry, and as a result, European imports of Russian fertilizer have changed very little since 2021. In the first quarter of 2025, EU countries imported $640 million (550 million euros) of Russian fertilizer, data shows. • Nickel: The EU has diversified imports to rely more on nickel from the United States, Norway, the United Kingdom and Canada. Still, the bloc imported $300 million (260 million euros) worth of nickel from Russia in the first quarter of 2025. Nickel is primarily used to make stainless steel and other alloy steels, as well as batteries. A view inside a plant at Russia's Nornickel company, the world's leading nickel and palladium producer, is seen in August 2021 in the Arctic city of Norilsk. Tatyana Makeyeva/Reuters Hundreds of Western firms still in Russia Beyond imports and exports of commodities, many Western companies remain entrenched in Russia. Some notable American-based holdouts continue to operate in Russia, including top 100 companies, according to lists compiled by the Yale School of Management and the Kyiv School of Economics Institute. Dozens of European businesses, including consumer-facing brands, retailers and software companies, have also remained in Russia. The amount of tax revenue that Western companies generate for the Kremlin is relatively small, but analysts say the companies that remain have allowed aspects of normal life to continue for the Russian population. Corporate exits serve to bring the war closer to the Russian people and confront their 'complacency,' as well as make it more difficult for Putin to paint a picture of a well-functioning economy, said Yale School of Management's Jeffrey Sonnenfeld, whose large team of researchers keeps track of which companies have left. 'It's an imploding market – it was never an economic superpower to start with – which is just a lot of smoke and mirrors, a lot of bravado on the part of Putin to try to create an aura of something bigger,' Sonnenfeld told CNN. India's and China's energy imports In contrast to the reduction in trade with Moscow seen in the United States and EU, India imported $67 billion worth of goods from Russia in 2024, according to data aggregated by the United Nations. Roughly $53 billion worth of that was petroleum oils and crude oil. Before the full-scale war, in 2021, India imported $8.7 billion worth of goods from Russia. India's imports of Russian oil and gas have skyrocketed since before the war began. Russian oil now makes up 36% of the Indian market, according to Vortexa, an energy data firm, meaning it imports more crude oil from Russia than from anywhere else. China has also ramped up purchases of Russian crude oil following Moscow's full-scale invasion of Ukraine in 2022. Its price fell after Western countries sharply scaled back their imports of Russian fuel. Russia now accounts for 13.5% of China's crude imports, according to Vortexa. China imported roughly $130 billion in Russian goods in 2024, including $62.6 billion of petroleum oils and crude, the UN-aggregated data shows.
Newsweek
05-08-2025
- Business
- Newsweek
Republican Says State's GDP Has Plunged 6% Due to Trade War—'Troubled Time'
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. A Republican congressman has warned that tariffs are having an outsized impact on his state's economy. "We're now in a troubled time," Nebraska Representative Don Bacon told CNN on Monday. "And honestly, in Nebraska, the GDP here has decreased by 6 percent over the last year," he continued. "And it's all about trade. It's all about getting corn and soybeans out the door." Why It Matters Tariffs have not yet made successive dents in America's economic growth rate this year, with GDP rebounding strongly in the second quarter from an import-driven contraction in the first. Extra reprieve has been provided by the temporary scaling back of China's duties, and tariff-lowering trade deals being struck with a handful of nations. However, many economists still expect tariffs to create headwinds for the U.S. economy in the coming months, with certain states—those reliant on imports and vulnerable to any reciprocal actions—expected to feel an outsized impact. What To Know Bacon, a centrist member of the GOP and frequent critic of President Donald Trump's trade policies on both economic and constitutional grounds, appeared to be referencing first-quarter GDP growth figures, state estimates of which were released by the Bureau of Economic Analysis (BEA) in June. Alongside Iowa, Nebraska's 6.1 percent decline was the worst in the nation. This compared to a nationwide drop of 0.5 percent, with 39 states seeing contractions over the period. "What we're seeing is basically a recession economy in Nebraska and Iowa right now," Bacon said in a separate interview. Agriculture plays a central role in the economies of Nebraska and Iowa, which are among the leading national producers of corn, soybeans and wheat. Farmers and agricultural experts who spoke with Newsweek recently said that tariffs could further strain the sector's already narrow margins, both through the negative impact on commodity prices and potential retaliatory actions damaging their exports. GOP Representative Don Bacon of Nebraska at a press conference at Eppley Airfield in Omaha, Nebraska on June 30, 2025. GOP Representative Don Bacon of Nebraska at a press conference at Eppley Airfield in Omaha, Nebraska on June 30, 2025. Chris Machian/Omaha World-Herald via AP U.S. GDP rebounded strongly in the second quarter, increasing at a better-than-expected annual rate of 3.0 percent according to last week's advanced estimates from the BEA. The bureau said this reflected a "downturn in imports and an acceleration in consumer spending." July 29 also saw the International Monetary Fund (IMF) upgrade its global growth forecasts, owing to a weaker dollar, the extensions placed on tariff deadlines, and a general drop in the expected impacts of the "trade shock." The U.S. was among the countries to see an upgrade, its GDP growth forecasts for both 2025 and 2026 increasing by 0.1 percent. What People Are Saying President Donald Trump, reacting to last week's GDP growth estimates, said: "The number of 3 percent—the pace in the second quarter—we smashed all expectations. They thought it would be maybe a little bit less than 2, and it was 3, a little bit more than 3." White House press secretary Karoline Leavitt said: "Today, GDP growth came in above market expectations, and yesterday, consumer confidence rose. Americans trust in President Trump's America First economic agenda that continues to prove the so-called 'experts' wrong. President Trump has reduced America's reliance on foreign products, boosted investment in the U.S., and created thousands of jobs—delivering on his promise to Make America Wealthy Again." Thomas Sampson, a professor of economics at the London School of Economics, told Newsweek that there exists "too much uncertainty over the future of U.S. trade policy" to make confidence predictions about GDP growth in the future. "But I do expect the tariff increases to act as a small drag on the U.S. economy," he added, "slightly reducing growth compared to what would have been achieved otherwise." Bill Adams, chief economist at Comerica Bank, told Newsweek: "The second quarter GDP report has a great headline, but details were weaker. Real final sales to private domestic purchasers (Core GDP) grew at the weakest pace since the fourth quarter of 2022. Tariff uncertainty, a wait-and-see attitude among businesses, and sour consumer sentiment weighed on business and consumer spending in the second quarter. "Combining the volatile first and second quarters, real GDP grew a sluggish 1.2 percent annualized in the first half of 2025," he added. "This is a big slowdown from its 2.8 percent increase in 2024 and 2.9 percent increase in 2023." What Happens Next? The BEA will release another set of estimates for second-quarter GDP growth later this month, followed by final estimates and state-by-state data in September. Bacon announced in June he would not be seeking reelection in 2026.
Yahoo
30-07-2025
- Business
- Yahoo
US economy grows at 3% in Q2, rebounding from first pullback in 3 years
US economic growth rebounded in the second quarter after contracting for the first time in three years to start 2025. Gross domestic product grew at an annualized pace of 3% in the second quarter, according to the Bureau of Economic Analysis's advance estimate. Economists surveyed by Bloomberg had expected a 2.6% increase. The reading comes after a large surge in imports ahead of President Trump's tariff whipsaw caused GDP to contract by 0.5% in the first quarter. The BEA noted that the second quarter bounce-back reflected a decrease in imports, which are a subtraction in the calculation of GDP. EY chief economist Gregory Daco noted that the quarterly swings in imports created a "economic mirage" that masked some underlying cooling in the economy. "Policy uncertainty, resurgent inflation pressures stemming from tariffs, and tighter immigration constraints are beginning to weigh more visibly on activity," Daco said. Capital Economics North America Thomas Ryan economist agreed there were signs of economic growth slowing in Wednesday's data. Growth in sales to private domestic purchasers, which economists like Daco and Ryan often reference as a key signal of underlying economic growth, rose 1.2% in the second quarter. This was lower than 1.9% growth seen in the first quarter and the slowest pace of growth since 2022. "With some of that further slowdown due to temporary factors, such as the post-Liberation Day slump in oil prices, we continue to view the economy as broadly healthy," Ryan wrote. Wednesday's GDP data covers the months of April through June, meaning it reflects activity during the first three months that the widest swath of Trump's tariffs were in place. However, it does not reflect recent tariff updates from July. Read more: What Trump's tariffs mean for the economy and your wallet Investors have been closely watching how the most aggressive US tariff stance in a century will impact economic growth. In April, Trump's initial "Liberation Day" tariffs spooked markets as recession fears rose. But in recent months, economic data has largely been better than feared, and recession concerns have eased. The probability investors were putting on a US recession in 2025, as tracked by popular online betting platform Polymarket, was just 17%, down from a peak of 66% on May 1. Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Hill
30-07-2025
- Business
- The Hill
GDP numbers buoy Trump
It's Wednesday. Two meteor showers are peaking at the same time! 💫 Here's how you have the best chance to see them. In today's issue: U.S. growth rebounds Powell's 2:30 p.m. interest rate decision Tsunami waves hit Hawaii, California Inside Cory Booker's Senate blowup Katy Perry, Justin Trudeau spotted together Let's talk about the e-con-o-my. Let's talk about you and me: The U.S. economy rebounded in the spring after contracting in the winter, according to data released Wednesday by the Bureau of Economic Analysis (BEA). How this is measured: The U.S. gross domestic product (GDP) — or the value of all goods and services across the economy — rose. This comes after the GDP fell by 0.5 percent in the first quarter while President Trump triggered a trade war. 🚨 Another big metric to watch for today: Federal Reserve Chair Jerome Powell will announce at 2:30 p.m. EDT the Fed's decision on interest rates. Experts aren't expecting a rate change, despite pressure from the president, but there can be surprises. 💻 Watch it live On cue, Trump again this morning pushed Powell to cut rates, arguing there's 'no inflation' in a Truth Social post. 'Let people buy, and refinance, their homes!' Trump said. 🗨️ Follow today's live blog Why the economic rebound is welcome news for the White House: The GDP figures arrive as another metric heads the opposite direction for the president: his approval rating. Trump's net approval rating has reached its lowest point of his second term, according to a new Economist/YouGov poll. His net approval rating is 15 points underwater. 🔎 See the full poll 📆 For your radar: Price data will be released on Thursday, which will give us a good measure of inflation. Plus, the July jobs report will come out on Friday. By the end of the week, we should have a clearer picture of where the U.S. economy stands. Trump unveils India tariffs: President Trump insists he is holding firm on his Aug. 1 start date for the global tariffs to kick in, calling it a 'BIG DAY FOR AMERICA!!!' And he just announced a 25 percent tariff on products imported from India, beginning on Friday. Which of the U.S.'s top trading partners *don't* have a trade deal with Trump yet?: China, Mexico, Canada, South Korea, Taiwan, India, Brazil, Switzerland and Thailand. U.S. and Chinese officials held another round of talks in Stockholm this week ahead of a separate Aug. 12 deadline for tariffs on China. Where each country stands in negotiations, via The Hill's Alex Gangitano 🌏 EARTHQUAKE LATEST The Earth's power is mind-blowing sometimes: Tsunami waves hit Hawaii, California, Washington state, Alaska, Japan and coastal areas of Russia's islands this morning following one of the most powerful earthquakes ever recorded. What triggered this?: A powerful 8.8-magnitude earthquake rumbled off the coast of Russia, triggering tsunami warnings across the Pacific. Hawaii had an evacuation order in place but has since downgraded it. ➤ SIGHTS AND SOUNDS 📹 Sirens blaring in Waikiki 📹 Doctors in Russia secured a patient midsurgery 📹 A tsunami hitting a Russian town 📹 Waves hitting the coast of Japan This is wild: Here's a graphic showing the earthquake's effect on the waves. 📹 Check out the map What are the strongest earthquakes ever recorded?: The records only go back to about 1900, but there have been multiple 9.0+ magnitude earthquakes. Here's a list Some practical advice: The Washington Post explains what you should do if you're in a tsunami warning. I must admit, I didn't know all of this. ✅ ON CAPITOL HILL A Senate confirmation that turned some heads: The Senate approved Emil Bove to the 3rd Circuit Court of Appeals, giving the No. 3 DOJ official and former Trump lawyer a lifetime appointment, even amid a series of whistleblower complaints about his conduct. What I mean by 'complaints about his conduct': Bove is currently the subject of three different complaints in recent weeks. Two of those allege he violated court orders. The third alleges he misled Congress on the dropping of bribery charges against New York Mayor Eric Adams. The Senate vote: 50-49. Republican Sens. Lisa Murkowski (Alaska) and Susan Collins (Maine) joined Democrats in voting 'no.' Rebecca Beitsch explains the controversies surrounding Bove. Read it in The Hill ➤ MORE COMINGS AND GOINGS: In: The Senate also confirmed Susan Monarez to lead the Centers for Disease Control and Prevention (CDC). The vote was 51-47. This was Trump's second pick for the role — the CDC hasn't had a permanent leader since March. She's a longtime government scientist who will now be at the helm of an agency Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. has upended. Read more Out: 'Vinay Prasad, the top vaccine regulator and chief scientific officer at the Food and Drug Administration (FDA) and a critic of the agency's COVID-19 policies, has departed after being on the job for less than three months.' An HHS spokesperson wouldn't give a reason for the sudden departure. Read more This was an intense blowup: Sen. Cory Booker (N.J.) unleashed on Democratic colleagues on the Senate floor Tuesday, accusing them of being 'willing to be complicit' with Trump. What prompted the fireworks: Sen. Catherine Cortez Masto (D-Nev.) tried to move a package of bills that included grants for police departments around the country. But Booker objected, noting the grants wouldn't go to New Jersey and some other Democratic-led states. Then things grew tense: Sen. Amy Klobuchar (D-Minn.) pointed out Booker previously objected — 'long before' Trump was in office — to her own policing legislation, arguing his criticism was broader than he framed it. Klobuchar then jabbed him for missing the committee markup for the bills. 'I don't need lectures on the urgency of this,' Booker fumed. Tensions increased from there. Read more from The Hill's Alexander Bolton. How we got here: Trump signed an order in January freezing federal funding related to diversity, equity and inclusion (DEI). Nearly a dozen states, led by New York Attorney General Letitia James (D), have opposed the funding freeze. What Booker wants: The senator wants Trump to release a hold on funding for Democratic states such as New Jersey, California and New York, arguing the party should use its 'leverage' over funding proposals. ➤ OTHER CONGRESS TIDBITS: Feel better, congressman: Rep. Tim Burchett (R-Tenn.) was ' accidentally kicked by a horse ' and broke a rib. Baby Boomer vs. Gen Z: A Gen Z activist launched a primary challenge against longtime Rep. Jerry Nadler (D-N.Y.). New book in the works: Sen. John Fetterman (D-Pa.) is promising an 'unapologetic account' of his 'unconventional life' in a forthcoming memoir, dubbed 'Unfettered.' Texas electoral maps: Texas Republicans unveiled new congressional maps today. Democrats have voiced alarm over the GOP redistricting plan. MTG won't run for governor: Rep. Marjorie Taylor Greene (R) is passing on a Georgia gubernatorial bid. 📧 In today's Evening Report: The redistricting wars are heating up ahead of the 2026 midterm elections, as Texas moves to redraw its maps to make several House races more favorable for Republicans. Click here to sign up & get it in your inbox. Coming Up The House is out. The Senate is in. President Trump is in Washington. (All times EDT) This afternoon: More Senate votes are expected. 📆 Today's agenda 1:30 p.m. Trump signs a bill into law. 2:30 p.m. Federal Reserve Chair Jerome Powell holds a news conference. 💻 Livestream 4 p.m. Trump delivers remarks on 'Making Health Technology Great Again.' 💻 Livestream 🐝 INTERNET BUZZ 🍰 Celebrate: Today is National Cheesecake Day. Sooo, Trump wants to prosecute Beyoncé: Last weekend, Trump called for the prosecution of singer Beyoncé. He claimed she was paid $11 million for endorsing Democratic presidential candidate Kamala Harris in 2024. Well, CNN fact-checked that claim and it is nonexistent. Read the factcheck and explainer ^ Good luck dealing with the Beyhive's wrath. 😅 🚀 How much do you want to bet they discussed her space trip?: Pop star Katy Perry was spotted dining in Montreal with former Canadian Prime Minister Justin Trudeau this week. A consultant for the restaurant said there were 'no visual signs of PDA or anything.' 📸 Photos from TMZ 👋 AND FINALLY… And to leave you with something useful, open this video any time you're having a bad day.
Yahoo
30-07-2025
- Business
- Yahoo
US economy grows at 3% in Q2, rebounding from first pullback in 3 years
US economic growth rebounded in the second quarter after contracting for the first time in three years to start 2025. Gross domestic product grew at an annualized pace of 3% in the second quarter, according to the Bureau of Economic Analysis's advance estimate. Economists surveyed by Bloomberg had expected a 2.6% increase. The reading comes after a large surge in imports ahead of President Trump's tariff whipsaw caused GDP to contract by 0.5% in the first quarter. The BEA noted that the second quarter bounce back reflected a decrease in imports, which are a subtraction in the calculation of GDP. Wednesday's GDP data covers the months of April through June, meaning it reflects activity during the first three months that the widest swath of Trump's tariffs were in place. However, it does not reflect recent tariff updates from July. Read more: What Trump's tariffs mean for the economy and your wallet Investors have been closely watching how the most aggressive US tariff stance in a century will impact economic growth. In April, Trump's initial "Liberation Day" tariffs spooked markets as recession fears rose. But in recent months, economic data has largely been better-than-feared, and recession concerns have eased. The probability investors were putting on a US recession in 2025, as tracked by popular online betting platform Polymarket, was just 17%, down from a peak of 66% on May 1. Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
