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Southeast Asian leaders are looking to insulate their trade-dependent economies from geopolitical uncertainty, in particular US tariffs, as they hold talks with Chinese Premier Li Qiang and Gulf state dignitaries in Kuala Lumpur on Tuesday.US President Donald Trump blew up global trade norms in April when he announced a slew of punishing levies targeting countries around the world, including US allies. Though he subsequently instigated a 90-day pause for most, the experience has spurred the Association of Southeast Asian Nations (ASEAN) to accelerate efforts to diversify its trading networks.”A transition in the geopolitical order is underway,” Malaysian Prime Minister Anwar Ibrahim said Monday.  After a lavish gala dinner the night before, Tuesday sees the inaugural summit between ASEAN, China and the Gulf Cooperation Council (GCC) — a regional bloc made up of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. ASEAN has traditionally served as “a middleman of sorts” between developed economies like the United States, and China, said Chong Ja Ian from the National University of Singapore (NUS).With Washington looking unreliable these days, “ASEAN member states are looking to diversify”, he said.”Facilitating exchanges between the Gulf and People’s Republic of China is one aspect of this diversification.”Malaysia, which holds ASEAN’s rotating chairmanship and opened the bloc’s 46th summit on Monday, is the main force behind the initiative, Chong said. Opening the ASEAN-GCC meeting on Tuesday — China will join later in the day — Anwar said the two blocs had “the means and responsibility to rise as anchors of stability and engines for future growth”.- ‘Timely and calculated’ -Beijing, which has suffered the brunt of Trump’s tariffs, is also looking to shore up its other markets. Its foreign ministry said Monday it “look(ed) forward to strengthening cooperation” with ASEAN and the GCC.China and ASEAN are already each other’s largest trading partners, and Chinese exports to Thailand, Indonesia and Vietnam surged by double digits in April — attributed to a re-routing of US-bound goods.Premier Li’s participation is “both timely and calculated”, Khoo Ying Hooi from the University of Malaya told AFP. “China sees an opportunity here to reinforce its image as a reliable economic partner, especially in the face of Western decoupling efforts.”Beijing and Washington engaged in an escalating flurry of tit-for-tat levies until a meeting in Switzerland saw an agreement to slash them for 90 days. Chinese goods still face higher tariffs than most though. According to a draft statement seen by AFP, ASEAN will express “deep concern… over the imposition of unilateral tariff measures”. But it said earlier this year it would not impose retaliatory duties.- Treacherous waters -ASEAN as a body has historically avoided choosing a side between the United States and China. China is only Southeast Asia’s fourth largest source of foreign direct investment, after the United States, Japan and the European Union, noted NUS’ Chong. Anwar said Monday he had written to request an ASEAN-US summit this year, with his foreign minister saying Washington had not yet responded. Yet any closer alignment with Beijing presents problems of its own, despite Anwar’s insistence Monday night that “whatever is being said… we are here as a friend of China”. On Monday, Philippines leader Ferdinand Marcos said there was an “urgent need” to adopt a legally binding code of conduct in the South China Sea. Beijing has territorial disputes with five ASEAN member states in the area, with China and the Philippines having engaged in months of confrontations in the contested waters.Anwar raised the South China Sea with Li, the Malaysian prime minister said in a Tuesday Facebook post announcing the one-on-one meeting. He also told Li ASEAN “appreciates China’s dedication to regional collaboration”, with most of the topics covered relating to trade. “Other disputants… are perhaps willing to let the Philippines bear the brunt of pressure,” said Chong. Tension between Manila and Beijing “means that these issues will not fade into the background, much as some other Southeast Asian states wish to focus on economic issues”, he added. 

Indonesia is hoping going nuclear can help it meet soaring energy demand while taming emissions, but faces serious challenges to its goal of a first small modular reactor by 2032.Its first experiment with nuclear energy dates to February 1965, when then-president Sukarno inaugurated a test reactor.Sixty years later, Southeast Asia’s largest economy has three research reactors but no nuclear power plants for electricity.Abundant reserves of polluting coal have so far met the enormous archipelago’s energy needs.But “nuclear will be necessary to constrain the rise of and eventually reduce emissions”, said Philip Andrews-Speed, a senior research fellow at the Oxford Institute for Energy Studies.President Prabowo Subianto has promised to ensure energy security while meeting a pledge to eliminate coal-powered electricity generation within 15 years.Coal accounts for around two-thirds of electricity generation in Indonesia, which targets net-zero by 2050.The government wants 40-54GW of the 400GW it projects will be generated nationwide by 2060 to come from nuclear.It hopes to kickstart capacity with a reactor on Borneo “by 2030 or 2032”, according to Energy Minister Bahlil Lahadalia.It will be a small modular reactor, which has a lower capacity than traditional reactors but is easier to assemble and transport.The total number of plants planned has not been detailed, but the government has begun scouting locations — a challenge for a country located on the seismically active “Ring of Fire”.”Currently, 29 potential locations have been identified for the construction of nuclear power plants,” Dadan Kusdiana, acting secretary general of the National Energy Council (DEN) told AFP.All are outside the country’s biggest island of Java, in line with government goals to develop the archipelago’s centre and east.The sites would also put facilities near energy-hungry mining sites.- Ring of Fire -While Japan’s quake and tsunami-triggered Fukushima disaster has stalled nuclear progress in some parts of Asia, proponents say nuclear can be done safely in Indonesia.”North Java, East Sumatra, West Kalimantan and Central Kalimantan are considered as low-risk zones,” said Andang Widi Harto, a nuclear engineering researcher at Yogyakarta University.”These low seismic risk regions also coincide with low volcanic risk regions,” he added.Countries from Vietnam to Belgium are also growing or retaining nuclear capacity as they struggle to meet net-zero goals to combat climate change.While Indonesia may not be alone in the nuclear pivot, it has little domestic expertise to draw on.It will look abroad for help, said Kusdiana, citing “serious interest” from providers including Russia’s Rosatom, China’s CNNC and Candu Canada.The Indonesian subsidiary of US company ThorCon is already seeking a licence for an experimental “molten-salt reactor”.It wants to use shipyards to build small reactors that will be towed to coastal or offshore locations and “ballasted” to the seabed.Kusdiana said DEN has also visited France’s EDF SA to explore possible cooperation.French President Emmanuel Macron is due in Indonesia this week as part of a Southeast Asia tour.EDF said there were currently “no discussions underway on nuclear with Indonesia,” though its CEO Bernard Fontana will be part of Macron’s delegation.A second French firm, Orano, also said it had not discussed collaboration with Indonesia.- ‘Sceptical’ -Given the challenges, which also include connectivity issues, waste disposal and potential domestic opposition, some experts warn Indonesia’s nuclear timeline is overambitious.”I would join others who are sceptical that Indonesia can deploy nuclear power at any significant scale in the next ten years,” said Andrews-Speed at the Oxford Institute.Environmentalists would like to see Indonesia focus more on meeting its clean energy targets with renewable sources.While hydroelectric accounts for over seven percent of Indonesia’s electricity generation, solar and wind contribute tiny amounts and could be significantly ramped up, experts say.Cost and “high corruption” are also obstacles, said Dwi Sawung, energy and urban campaign manager at NGO WALHI.”There is not enough left in the government and PLN (state electricity company) budget,” he told AFP.The government has not said how much it expects the nuclear ramp-up to cost, but Kusdiana insists the money will be there.”Various potential international investors… have shown interest”, including Russia, the United States, Denmark, South Korea and China, he said.

European stock markets rallied Monday after US President Donald Trump delayed 50-percent tariffs on the European Union until July 9 to give more time for negotiations.Trump sent the markets into a tailspin again on Friday when he threatened to hit EU goods with the huge tariff from June 1 as talks were “going nowhere”.Along with that threat, he warned that he would hit smartphone makers with 25-percent tariffs if they did not make their handsets in the United States.Trump provided some relief Sunday by saying he was putting off the EU tariffs until July 9 after a “very nice call” with European Commission President Ursula von der Leyen, adding that officials will “rapidly get together and see if we can work something out”.Von der Leyen vowed to move “swiftly” to reach a deal.On Monday the Paris CAC 40 index closed 1.2 percent higher while the Frankfurt gained 1.7 percent.London and Wall Street were closed for holidays, but US futures were higher while Asia struggled.Analysts said the latest unexpected salvos from the White House highlighted the uncertain path investors are having to walk owing to the president’s volatile policy pivots.”The stock market seems to dance to Trump’s tune: first a threat, then a pullback, quickly followed by a rebound as speculative investors anticipate a concession from the US president,” said Jochen Stanzl, chief market analyst at CMC Markets trading platform.”This morning’s confirmation of such expectations reinforces the so-called ‘Trump Pattern’, which is increasingly seen as a successful strategy for risk-tolerant investors.”The dollar remained under pressure after dropping Friday.Oil prices fluctuated and ended flat, with producers’ group OPEC+ expected this week to continue to raise production despite low prices, after pressure from Trump.- Steel saga -Investors have also fretted over Trump’s economic policies, with US long-term government bond yields surging last week over concerns that his tax relief and spending cuts plan — which was approved by the House — will increase the US debt pile.Traders are also looking ahead to Wednesday’s release of minutes from the Fed’s earlier May policy meeting, hoping for an idea about the central bank’s views on the economy.That is followed by the Fed’s preferred measure of inflation — US personal consumption expenditures — on Friday.In company news, shares in Seoul-listed Samsung rose almost one percent despite Trump’s threat of tariffs on smartphone makers.In Tokyo, Nippon Steel rallied as much as 7.4 percent after Trump threw his support behind a new “partnership” between the Japanese firm and US Steel. It ended up 2.1 percent.US Steel soared 21 percent in New York on Friday.In Europe, shares in steel giant ThyssenKrupp surged 8.7 percent after the firm said it planned a major overhaul that will split the vast conglomerate into several standalone businesses.Swedish carmaker Volvo rose more than two percent after it announced it would cut 3,000 jobs as part of a $1.9 billion cost-cutting plan.- Key figures at around 1545 GMT -Paris – CAC 40: UP 1.2 percent at 7,828.13 pointsFrankfurt – DAX: UP 1.7 percent at 24,027.65Tokyo – Nikkei 225: UP 1.0 percent at 37,531.53 (close) Hong Kong – Hang Seng Index: DOWN 1.4 percent at 23,282.33 (close)Shanghai – Composite: DOWN 0.1 percent at 3,346.84 (close)Euro/dollar: UP at $1.1382 from $1.1369 on FridayPound/dollar: UP at $1.3563 from $1.3535Dollar/yen: UP at 142.81 yen from 142.57 yenEuro/pound: DOWN at 83.91 pence from 83.96 penceWest Texas Intermediate: UP 0.1 percent at $61.62 per barrelBrent North Sea Crude: UP 0.1 percent at $64.88 per barrelNew York – Dow: Closed for a holidayLondon – FTSE 100: Closed for a holiday

Southeast Asian leaders met Monday in Kuala Lumpur for their first summit since US President Donald Trump’s tariffs upended global economic norms, with the trade-dependent nations expected to issue a joint message of deep concern.The Association of Southeast Asian Nations’ (ASEAN’s) strategy of nurturing diverse economic alliances was on full display as Chinese Premier Li Qiang was warmly welcomed along with Gulf state dignitaries for a lavish gala dinner ahead of talks on Tuesday. Trump cast international markets into turmoil in April when he announced wide-ranging tariffs, before agreeing to pause them for most countries for 90 days.In summit opening remarks given to media but not delivered in his speech, Malaysian Prime Minister Anwar Ibrahim said: “A transition in the geopolitical order is underway and the global trading system is under further strain, with the recent imposition of US unilateral tariffs.””Protectionism is resurging as we bear witness to multilateralism breaking apart at the seams,” he added.Bilateral talks between the ASEAN member states and Washington are in progress, but the bloc is still presenting a united front, according to Malaysia, which holds the rotating ASEAN chairmanship this year. According to a draft statement seen by AFP, ASEAN will express “deep concern… over the imposition of unilateral tariff measures”, saying they “pose complex and multidimensional challenges” to the bloc. But it said earlier this year it would not impose retaliatory duties.Instead, it is looking at broadening its scope with other trading blocs, including the European Union, as well as beefing up trade between member states, Malaysia’s trade minister said Sunday.- ‘Not just a photo-op’ -Tuesday’s talks with Li and the Gulf Cooperation Council — a bloc made up of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates — underscores this effort to maintain a broad network of trading partners.”It’s not just a photo-op. It actually demonstrates how ASEAN is attempting to engage strategically with various blocs, a strategy we might term multi-alignment diplomacy,” said Khoo Ying Hooi from Malaya University.Anwar said Monday he had written to Trump to request an ASEAN-US summit this year — showing “we observe seriously the spirit of centrality”.His foreign minister Mohamad Hasan said Washington had not yet responded. Despite smiles all round at Monday night’s dinner — and Premier Li donning a matching traditional batik shirt to the ASEAN leaders — the bloc’s relationship with China is a complicated one. “Please be assured that whatever is being said, or circumstances and complexity, we are here as a friend of China,” Anwar said at the dinner.But on Monday, Philippines leader Ferdinand Marcos told his regional counterparts there was an “urgent need” to adopt a legally binding code of conduct in the South China Sea. Beijing has territorial disputes in the area with five ASEAN member states, with China and the Philippines having engaged in months of confrontations in the contested waters.The adoption of the code should be accelerated “to safeguard maritime rights, promote stability, and prevent miscalculations at sea”, Marcos said.- Myanmar conflict – ASEAN also has internal matters to deal with, including an attempt to increase pressure on member state Myanmar’s military junta, whose leaders are barred from summits over a lack of progress on a five-point peace deal agreed on by the bloc in 2021.”One thing for sure that we agreed is that Myanmar’s government… must comply with the five points consensus which they themselves agreed on as one of the signatories,” Mohamad said Sunday.ASEAN has led so far fruitless diplomatic efforts to end the conflict, triggered when the junta staged a coup deposing civilian leader Aung San Suu Kyi in February 2021.Mohamad called Sunday for an extension and expansion of a ceasefire declared after a deadly earthquake, despite ongoing fighting bringing its effectiveness into question.  Also on ASEAN’s agenda was the prospect of adding an 11th member state before the end of the year.East Timor, Asia’s youngest nation, “has made meaningful progress” for it to “hopefully” join the bloc by the next summit in October, Mohamad said. After meeting leaders on Monday, East Timor’s prime minister said he believed his country would become a full member this year. “Because everyone supports. Everybody. It was incredible,” Xanana Gusmao told reporters.

Asian stocks were mixed Monday after Donald Trump thrust his trade war back into the spotlight by threatening the European Union with huge tariffs before extending a deadline for their implementation.Just as markets were showing signs of settling following their bond-fuelled selloff last week, the US president hurled his latest grenade across the pond by levelling 50 levies at the bloc from June 1, saying talks were “going nowhere”.He also said he would hit smartphone makers with 25 percent tolls if they did not make their handsets in the United States.Wall Street’s three main indexes and most European markets dumped into the red Friday.However, Asia got a reprieve after Trump said Sunday that he would delay the EU tariffs until July 9 following a “very nice call” with its boss Ursula von der Leyen, adding that officials will “rapidly get together and see if we can work something out”.Tokyo, Shanghai and Seoul rose, but Hong Kong, Sydney, Singapore, Wellington, Taipei, Manila and Jakarta fell.The dollar remained under pressure after dropping Friday.Analysts said the latest unexpected salvos from the White House highlighted the uncertain path investors are having to walk owing to the president’s volatile policy pivots.They have also warned that his bill to extend tax cuts and slash spending could balloon the national deficit by trillions of dollars, putting upward pressure on Treasury yields and sparking warnings about the world’s biggest economy.”The consensus view was always that the 50 percent tariffs wouldn’t hold for long anyhow and would have most likely been reduced towards 20 percent shortly after 1 June,” said Christ Weston at Pepperstone.”But this action (Sunday) simply highlights that while tariffs will be helpful in keeping the US  deficit in check, they are also a primary negotiation tool, where the initial gambit has been swiftly reduced.”- Fed minutes -Ray Attrill at National Australia Bank added: “In what is an otherwise quiet week on the scheduled global data and events calendar… trade discussion look set to dominate the market landscape this week.”Investors are also looking ahead to the release of minutes from the Federal Reserve’s policy meeting this month, hoping for an idea about decision-makers’ views on the economy in light of the tariff war.That is followed by its preferred measure of inflation — US personal consumption expenditures — which will be unveiled Friday.The bank showed a shift in tone in its post-meeting statement “with uncertainty about the economic outlook increasing further, stating that the risks of higher unemployment and inflation have both risen”, said Michael Hewson, of MCH Market Insights.”This is a problem for the Fed’s dual mandate given that these two items could move in the same direction when any policy response may well hinder one over the other.”He added: “The biggest concern is likely to be the sharp drop in US consumer confidence levels in the last few months, however… this could quickly reverse if the US government begins to realise that its tendency to pick fights at every turn is doing more harm than good domestically.”In company news, shares in Seoul-listed Samsung rose more than one percent despite Trump’s threat of tariffs on smartphone makers.And in Tokyo, Nippon Steel rallied as much as 7.4 percent after Trump threw his support behind a new “partnership” between the Japanese firm and US Steel.His remarks Friday were the latest in a long saga surrounding Nippon Steel’s $14.9-billion takeover of US Steel first announced in late 2023.He said US Steel’s headquarters would remain in Pittsburgh and that the partnership would create at least 70,000 jobs and add $14 billion to the US economy.However, neither the White House nor the two companies have published details of the new arrangement and many questions remain.US Steel soared 21 percent in New York on Friday.- Key figures at around 0300 GMT -Tokyo – Nikkei 225: UP 0.5 percent at 37,329.22 (break)Hong Kong – Hang Seng Index: DOWN 0.7 percent at 23,447.04Shanghai – Composite: UP 0.1 percent at 3,352.76Euro/dollar: UP at $1.1395 from $1.1369 on FridayPound/dollar: UP at $1.3564 from $1.3535Dollar/yen: DOWN at 142.55 yen from 142.57 yenEuro/pound: UP at 84.00 pence from 83.96 penceWest Texas Intermediate: UP 0.2 percent at $61.66 per barrelBrent North Sea Crude: UP 0.2 percent at $64.91 per barrelNew York – Dow: DOWN 0.6 percent at 41,603.07 (close)London – FTSE 100: DOWN 0.2 percent at 8,717.97 (close)

In India’s sprawling financial hub of Mumbai armies of “dabbawalas” have for decades crisscrossed the city by foot and bicycle, delivering home-cooked food to office workers who are keen to avoid the searing heat and traffic-snarled streets.Now, across the country, young entrepreneurs are taking that tradition to the next level with the explosion of shopping apps that allow customers to get hold of not only food and drink but anything else from clothes to iPhones — within minutes.The so-called quick commerce apps are redefining the retail game, not only disrupting e-commerce titans such as Amazon with their speed and efficiency but also long-established “mom and pop” stores which are no longer convenient enough.At a warehouse managed by online grocer BigBasket in central Mumbai, employees work with military-like precision to pull off deliveries in just 10 minutes.These warehouses are known within the industry as “dark stores”, a reference to being closed off to customers.When a new order is received, a worker leaps into action, darting through aisles filled with everything from fizzy drinks to vegetables, packing a bag of groceries handed to a motorbike rider — the modern-day “dabbawala”, Hindi for “lunchbox man”.Local tech companies have poured in billions to set up these nifty logistical networks across big cities, fuelling India’s rapid shopping industry.  – ‘Unprecedented’ -For millions of customers, it’s an easy way to avoid shopping in the sweltering heat — visiting multiple food stalls — and spending hours navigating the country’s notorious traffic jams. Growth has been “very strong”, BigBasket co-founder Vipul Parekh told AFP, pointing to forecasts that indicate a compounded annual growth rate of more than 60 percent over the next two to three years. “When you talk of a large industry transforming and growing at this pace, that is unprecedented,” he said. Delivery apps such as Getir or Jokr have faltered in Europe and the United States in recent years, as pandemic-induced demand wore off and rising inflation pinched customer wallets.  But sales in India have soared from $100 million in 2020 to an estimated $6 billion in 2024, according to projections by market analysis firm Datum Intelligence.This could hit $40 billion by the end of the decade, according to investment bank JM Financial.    Companies say India’s quick commerce’s growth is partly down to the sheer scale of people living in tight-packed cities within a roughly two kilometre (one mile) radius of a “dark store”, said Parekh.”The revenue potential in that catchment is very high,” he said.A lack of many traditional supermarket grocery chains in India aid the business model, he said. Rinish Ravindra, a regular user, admits that they make him “lazy”, but argues that the convenience is unbeatable. “I just press a bunch of keys and all of it comes delivered to home,” says the 32-year-old, who works in Mumbai’s film industry. Local players have made rapid progress but competition is heating up. Amazon is getting its act together, along with Walmart-owned Flipkart and billionaire Mukesh Ambani’s Reliance Industries as they belatedly roll out rapid delivery offerings.”One of the problems with e-commerce players like Amazon is that, until now, they’ve relied on these big fulfilment centres that sit on the outside or outskirts of cities,” said Satish Meena of Datum Intelligence.”These aren’t suited for rapid delivery, which is why they now need to invest to build their own dark store networks within urban areas.”  – ‘Just order it online’ -However, a more crowded industry threatens the sustainability of the sector that has already seen one prominent start-up go bust.”My sense is that the market is good enough for two to three players,” said Rahul Malhotra of Bernstein, a research firm, adding that the total addressable market may be worth around $50-$60 billion. “Some of the early movers, with hyperlocal capabilities obviously, have an advantage here.”The sector could also face challenges from thousands of small, family-run shops. The Confederation of All India Traders, a leading industry group that claims to represent over 90 million small businesses, has called for “a nationwide movement” against newer platforms. Its president likened quick commerce to being a “modern-day East India Company”, a reference to the rapacious British power that began in the 17th century to seize swathes of India, preceding colonial rule.For now, customers are voting with their wallets.  “When I think of groceries I think, ‘I can just order it online’,” said Ravindra. 

US President Donald Trump on Friday threw his support behind a new “partnership” between US Steel and Japan’s Nippon Steel, sending the American firm’s share price skyrocketing on hopes of an end to the long-running saga over foreign ownership of a key national asset.  While the details of the deal remained unclear, the Pennsylvania-headquartered firm’s share price popped after Trump took to Truth Social to hail the new arrangement, closing up more than 21 percent and then rising further in after-hours trading.”US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh,” the US president said in his social media post. He added that the new “planned partnership” between America’s US Steel and Japan’s Nippon Steel would create at least 70,000 jobs and add $14 billion to the US economy. Trump’s remarks are the latest in a long saga which began in December 2023, when US Steel and Nippon Steel announced plans for a $14.9 billion merger. That deal was bitterly opposed by unions in part because it would have transfered ownership of the critical asset to a foreign company. – ‘Massive investment’ -In a statement, Nippon Steel said it “applauds” the bold action taken by Trump, adding it shared the administration’s “commitment to protecting American workers, the American steel industry, and America’s national security.”US Steel praised Trump’s “bold” leadership on the deal, noting that it would “remain American” and expand in size due to the “massive investment” that Nippon would make over the next four years as part of the deal.Neither the White House nor the two companies, have so far published the details of the new partnership.  The United Steelworkers’ union (USW), which represents US Steel employees and has long opposed the deal, said on Friday that it could not “speculate” on the impact of Trump’s announcement without more information about the deal. “Our concern remains that Nippon, a foreign corporation with a long and proven track record of violating our trade laws, will further erode domestic steelmaking capacity and jeopardize thousands of good, union jobs,” USW International President David McCall said in a statement shared with AFP. Nippon’s acquisition of US Steel was originally meant to close by the end of 2024’s third financial quarter, but was then held up by former president Joe Biden, who blocked it in his last weeks in office on national security grounds.The two firms then filed a lawsuit against the Biden administration’s “illegal interference” in the transaction.Trump previously opposed Nippon Steel’s takeover plan, calling for US Steel to remain domestically owned. But he has since softened his tone and has suggested he is open to some form of investment from Nippon.The US president recently ordered his own review of the existing deal, directing the government’s Committee on Foreign Investment in the United States (CFIUS) to look into the proposed acquisition.CFIUS, tasked with analyzing the national security implications of foreign takeovers of US companies, was given 45 days to submit its recommendations to Trump.

US President Donald Trump rekindled his trade war with the European Union on Friday by threatening 50 percent tariffs, as Brussels reacted with a call for “respect.”Trump also unleashed a broadside against smartphone makers including US tech giant Apple, threatening them with new duties of 25 percent if they do not move production to the United States.Stock markets fell as the Republican’s comments fueled fears of global economic disruption, after a relative lull in recent days after Trump reached deals with China and Britain.Trump first raised the issue of EU tariffs in an early morning post on his Truth Social network. “Our discussions with them are going nowhere!” Trump said. “Therefore, I am recommending a straight 50 percent Tariff on the European Union, starting on June 1, 2025.”He doubled down later in the day, telling reporters in the Oval Office that there was nothing the 27-nation bloc could do to change his mind.”I’m not looking for a deal. I mean, we’ve set the deal. It’s at 50 percent,” Trump said. “They haven’t treated our country properly. They banded together to take advantage of us.”Billionaire property tycoon Trump, 78, also denied that his tariffs would hurt American businesses.”They’re not hurting, they’re helping,” he said.Trump’s new tariffs would, if imposed, dramatically raise Washington’s current baseline levy of 10 percent, and fuel simmering tensions between the world’s biggest economy and its largest trading bloc.The EU’s trade chief said the bloc would work for a trade deal with Washington based on “respect” not “threats.””The EU’s fully engaged, committed to securing a deal that works for both,” trade commissioner Maros Sefcovic posted on X, after a previously planned call with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick.In a separate message posted Friday that also unnerved markets, Trump blasted Apple boss Tim Cook for failing to move iPhone production to the United States despite repeated requests.Trump said he had “long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else.” “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”Trump later stepped up his threats, saying he would hit all smartphones not made in the country.”It would be also Samsung and anybody that makes that product, otherwise it wouldn’t be fair,” Trump told reporters, adding that the new tariffs would come into effect from the end of June.- Market worries -Trump imposed sweeping tariffs on most of the world on what he called “Liberation Day” on April 2, with a baseline 10 percent plus steeper duties including a 20 percent levy on the EU.Markets were thrown into turmoil but calmed after he paused the bigger tariffs for 90 days.Trump has since claimed some early successes in deals struck with Britain and with China, the world’s second biggest economy.But talks with the EU have failed to make much progress, with Brussels recently threatening to hit US goods worth nearly 100 billion euros ($113 billion) with tariffs if it does not lower the duties on European goods.US Treasury Secretary Scott Bessent told Bloomberg Television on Friday the lower 10 percent tariff rate was “contingent on countries or trading blocs coming and negotiating in good faith.”Wall Street’s main indexes were all down around one percent two hours into trading, with the tech-heavy Nasdaq at one stage losing 1.5 percent before rallying while Apple shares sank 2.5 percent.Paris and Frankfurt ended with losses of around 1.5 percent, while London’s FTSE 100, which initially rose, also ended in the red.”The administration had kind of hinted that they were considering imposing reciprocal tariffs on countries that weren’t negotiating in good faith,” Barclays senior US economist Jonathan Millar told AFP. 

Shares of steelmaker US Steel skyrocketed on Friday after President Donald Trump announced his support for a “partnership” with Japan’s Nippon Steel. Trump’s remarks are the latest in a long saga which began in December 2023, when US Steel and Nippon Steel announced plans for a $14.9 billion merger under a deal bitterly opposed by the unions. “US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh,” the US president posted on Truth Social, adding that the “planned partnership” between America’s US Steel and Japan’s Nippon Steel would create at least 70,000 jobs and add $14 billion to the US economy. The Pennsylvania-headquartered firm’s share price popped on the news, closing up more than 21 percent and then increasing further in after-hours trading.It was not immediately clear what the terms of this new partnership were, and neither company, nor the White House, responded to a request for comment.The United Steelworkers’ union (USW), which represents US Steel employees and has long opposed the deal, said it could not “speculate” on the impact of Trump’s announcement without more information. “Our concern remains that Nippon, a foreign corporation with a long and proven track record of violating our trade laws, will further erode domestic steelmaking capacity and jeopardize thousands of good, union jobs,” USW International President David McCall said in a statement.  Nippon’s acquisition of US Steel was originally meant to close by the end of 2024’s third financial quarter, but was then held up by former president Joe Biden, who blocked it in his last weeks in office on national security grounds.The two firms then filed a lawsuit against the Biden administration’s “illegal interference” in the transaction.Earlier this month, Trump ordered his own review of the deal, directing the government’s Committee on Foreign Investment in the United States (CFIUS) to look into the proposed acquisition.CFIUS, tasked with analyzing the national security implications of foreign takeovers of US companies, was given 45 days to submit its recommendations to Trump.

Stock markets dropped Friday after US President Donald Trump ended a lull in his trade war with threats of massive tariffs on Apple products and imports from the European Union.Wall Street’s main indexes spent the entire session in the red. The biggest loser of the three was the Nasdaq, weighed down by a three percent fall in Apple.Paris and Frankfurt ended with losses of around 1.5 percent, with shares in luxury and car companies taking a hit after Trump threatened 50 percent tariffs on EU goods.London’s FTSE 100, which initially rose, also ended in the red.Germany’s DAX had also been higher earlier in the day as German economic growth data was revised up.”What is somewhat of a surprise is the fact that the EU will now face a considerably higher tariff rate than China, an almost unthinkable scenario just a matter of weeks ago,” said Lindsay James, investment strategist at Quilter.”It is highlighting that much of this policy is designed to be punitive, rather than having any economic credibility to it.”Oil prices rebounded, meanwhile, having earlier dropped by around one percent, while the dollar remained under pressure.Trump’s new threats revived investor concerns about his trade policies after a recent deal with Britain and a tariffs truce with China.”All the optimism over trade deals wiped out in minutes –- seconds, even,” said Fawad Razaqzada, market analyst at StoneX.Trump said on his Truth Social platform that he was “recommending a straight 50% Tariff on the European Union” from June 1 as “discussions with them are going nowhere!””The EU is one of Trump’s least favorite regions, and he does not seem to have good relations with its leaders, which increases the chance of a prolonged trade war between the two,” said Kathleen Brooks, research director at trading platform XTB.The US president had announced 20 percent tariffs on EU goods last month but suspended the measure to give space for negotiations.Trump, however, maintained a 10 percent levy on imports from the 27-nation bloc and nearly every other nation around the world, along with 25 percent duties on the car, steel and aluminium industries.He also threatened on Friday to hit Apple with a 25 percent tariff if its iPhones are not manufactured in the United States.Trump initially said the tariff would apply only to Apple — an unusual move in singling out a specific company in trade policy. However, he later expanded the threat to include all smartphone manufacturers, telling reporters the levy could also hit Samsung.Trump’s social media outburst rocked stock markets which had steadied following losses over concerns about the ballooning US debt and rising US borrowing costs.- Key figures at around 2050 GMT -New York – Dow: DOWN 0.6 percent at 41,603.07 (close)New York – S&P 500: DOWN 0.7 percent at 5,802.82 (close)New York – Nasdaq Composite: DOWN 1.0 percent at 18,737.21 (close)London – FTSE 100: DOWN 0.2 percent at 8,717.97 (close)Paris – CAC 40: DOWN 1.7 percent at 7,734.40 (close)Frankfurt – DAX: DOWN 1.5 percent at 23,629.58 (close)Tokyo – Nikkei 225: UP 0.5 percent at 37,160.47 (close)Hong Kong – Hang Seng Index: UP 0.2 percent at 23,601.26 (close)Shanghai – Composite: DOWN 0.9 percent at 3,348.37 (close)Euro/dollar: UP at $1.1369 from $1.1281 on ThursdayPound/dollar: UP at $1.3535 from $1.3412Dollar/yen: DOWN at 142.57 yen from 144.01 yenEuro/pound: DOWN at 83.96 pence from 84.06 penceBrent North Sea Crude: UP 0.5 percent at $64.78 per barrelWest Texas Intermediate: UP 0.5 percent at $61.53 per barrel