U.S. Doubles Tariffs on Indian Imports to 50% Over Russian Oil
Washington escalates trade pressure by doubling tariffs on Indian imports to punish New Delhi for continuing to buy Russian oil.
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The United States, under President Donald Trump, has doubled tariffs on most goods imported from India to 50%,
making them the highest in Asia. The move is part of Washington’s effort to penalize India for continuing its purchases of Russian crude. The higher tariffs came into effect on Wednesday, combining the previous 25% base tariff imposed by Trump with an additional 25% penalty.
However, sector-specific tariffs will not be doubled, meaning Indian exports of steel and aluminum will face duties of 50% instead of 100%.
India has criticized Trump’s decision to raise tariffs as “unfair, unjustified, and unreasonable,”
and vowed to take all necessary steps to protect its national interests.
In recent months, the U.S. has urged India to halt its purchases of Russian oil, citing the country as a strategic partner.
India is among the world’s largest crude importers and a key buyer that helps sustain Russia’s economy—it is also the world’s second-largest oil consumer.
This undermines the effectiveness of Western economic pressure aimed at isolating Russia globally over the war in Ukraine. India has repeatedly defended its stance, stressing that energy security is its top priority and that its actions are based on national interests.
It also maintains that its dealings with Russia do not violate Western sanctions,
as it is not a party to them and is not legally bound to comply.
Bitcoin is a digital cryptocurrency launched in 2009 by a mysterious figure known as Satoshi Nakamoto. Its primary goal is to establish a decentralized financial system that allows money to be exchanged directly between individuals without intermediaries such as banks or governments.
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Accepting Bitcoin Payments: Selling products or services and receiving payments in Bitcoin.
Indirect Investment: Through investment funds or stocks of companies operating in the cryptocurrency sector.
Investment Analysis
Bitcoin is no longer just a digital currency; it has become an economic phenomenon reshaping global concepts of money and investment.
While some view it as “digital gold” that provides a hedge against inflation and currency depreciation, others warn that its extreme volatility makes it a high-risk asset unsuitable for all investors. Notably, major financial institutions have entered this market through investment funds and financial products, signaling growing recognition of its role in the global financial system.
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Important Tips
Before Entering the World of Bitcoin
High Volatility: Bitcoin’s price is highly volatile, so you should only invest amounts you can afford to lose.
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Conclusion
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U.S.-China trade talks expected amid rising tensions China’s chief trade negotiator, Li Chenggang, is heading to Washington to launch a first round of discussions with U.S. officials.
The move is seen as an attempt to reopen dialogue channels between the world’s two largest economies after a period of escalating friction. Talks are expected to focus on contentious issues, including tariffs imposed by the Trump administration on Chinese imports and restrictions on technology exports to Beijing, particularly in the vital semiconductor sector. According to informed sources, Beijing is also seeking to boost imports of U.S. agricultural products—especially soybeans—in an effort to achieve a more balanced trade relationship. Global financial markets are closely watching the talks,
with investors viewing any breakthrough in the trade dispute as a positive signal.
At the same time, fears remain that negotiations could stall again, as happened in previous rounds,
already reflected in early-week volatility in Asian markets.
Germany
German industry loses a quarter million jobs since 2019 as auto sector struggles A new study by Ernst & Young (EY) published Tuesday showed that Germany’s industrial sector continues to shed jobs at an accelerating pace, under pressure across the manufacturing base of Europe’s largest economy. The report revealed that employment in German industrial companies fell 2.1% in the second quarter of 2025,
bringing the total workforce down to 5.43 million.
Compared to 2019 levels, the sector has lost around 245,500 jobs, a 4.3% decline over six years. Industry revenues reached €533 billion ($623.9 billion) in Q2, down 2.1% year-on-year, after a slight 0.2% decline in Q1. The auto industry was hit hardest, losing 51,500 jobs in the second quarter alone—a 6.7% annual drop.
This decline is linked to intensified competition from Asian manufacturers,
rising costs tied to the shift toward electric vehicles, and the impact of recent U.S. tariffs.
United States
U.S. new home sales fall in July despite lower prices The U.S. housing market slowed in July, as new home sales declined despite lower prices and relatively stable supply levels. Data released Monday by the U.S. Census Bureau showed that sales of new single-family homes dropped 0.6% month-on-month to 652,000 units, down from 656,000 in June. Compared to July 2024, sales fell 8.2%. On supply, the Bureau estimated 499,000 new homes available for sale at the end of July—a 0.6% monthly decline but still 7.3% higher than the previous year. As for prices, the median sales price fell to $487,300 in July,
down 3.6% from June and 5% year-on-year.
This reflects ongoing pressure on the U.S. housing market, driven by high financing costs despite easing prices.
Trade Tensions Industrial Struggles and Housing Pressures Shake Global Markets
Under Pressure from U.S. Tariffs and Russian Supplies
Price Decline: Brent crude fell toward $68 per barrel, while WTI hovered near $64 after a brief rally.
Key Factors: Markets are waiting for clearer signals regarding Russian oil flows, particularly as attacks on Russia’s energy infrastructure persist.
Tariff Impact: Washington’s decision to double tariffs on Indian imports, as punishment for buying Russian crude, sparked controversy. New Delhi deemed the move “unfair,” while analysts warned it could add further uncertainty to the market.
Future Outlook: The International Energy Agency recently warned of a record surplus in 2025, driven by weak demand growth and rising OPEC+ output. Analysts suggest prices may retest $70 if geopolitical tensions escalate.
Gold
Shines as a Safe Haven Amid Turmoil
Fresh Gains: Spot gold climbed to around $3,375 per ounce, supported by safe-haven demand after U.S. President Donald Trump abruptly dismissed Federal Reserve member Lisa Cook.
Political and Economic Effects: The move was seen as a threat to the Fed’s independence, boosting expectations for future interest rate cuts. Since gold typically benefits from easier monetary policy, demand strengthened.
Dollar and Bonds: A weaker U.S. dollar and lower short-term bond yields provided additional support for the precious metal.
Looking Ahead: Despite gaining over 25% this year, analysts say gold will need new catalysts to surpass its April peak of $3,500, with upcoming U.S. consumer spending data seen as a key test for the Fed’s flexibility.
Market Summary
Oil prices declined under pressure from political and trade developments, with supply from Russia remaining in focus.
Gold extended its rise as a safe-haven asset, driven by Fed-related turmoil and U.S. policy uncertainty.
Analysts expect continued volatility across energy and metals markets in the near term.
Wall Street Retreats Ahead of Key Economic Data: The rally that pushed U.S. stock indexes to near-record levels faltered.
As Treasury yields rose and bets on Federal Reserve interest rate cuts weakened,
ahead of the release of key inflation data in the United States.
Despite Fed Chair Jerome Powell’s signal on Friday that a September rate cut is likely amid risks to the labor market,
uncertainty remains on Wall Street over the pace of cuts.
Investors are bracing for potentially concerning price data, with officials divided this week.
Policymakers face inflation that remains above the 2% target and shows signs
of acceleration while the labor market softens.
This complex dynamic deepens uncertainty about monetary policy direction in the coming months.
Inflation and Personal Consumption Expenditures Outlook
Forecasts indicate that the core Personal Consumption Expenditures (PCE) index (excluding food and energy),
The Fed’s preferred measure of underlying inflation rose 2.9% year-on-year last month, the fastest pace in five months. Chris Larkin of “E-Trade” (a unit of Morgan Stanley) said, “The debate will now shift to how strong the Fed’s stance is.
The Fed has not abandoned its 2% inflation goal despite labor market weakness.”
Indexes Decline and Yields Rise
The S&P 500 fell 0.3%, with about 400 stocks declining, while Nvidia led gains ahead of its earnings report.
The 10-year U.S. Treasury yield rose three basis points to 4.28%, strengthening the U.S. dollar against major currencies.
Jose Torres of “Interactive Brokers” said:
“Markets lack catalysts today, leading to cautious sentiment, particularly as investors reassess Powell’s cautious approach.”
Anticipation of Upcoming Fed Meetings
Markets price an 80% chance of a September rate cut, with two additional cuts likely by year-end.
Krishna Guha of “Evercore” said the repricing after the Jackson Hole speech was reasonable,
expecting a “measured and cautious” Fed cut.
Meanwhile, Andrew Brenner of “NatAlliance Securities” warned against downplaying inflation,
noting that employment risks are more pressing.
Trump’s Decision on Powell’s Successor
Kevin Hassett, Director of the National Economic Council,
said Donald Trump’s decision on Powell’s successor will take months, as Powell’s term ends in May.
Ulrike Hoffmann-Burchardt of “UBS” said the Fed could advocate easing in September unless stronger-than-expected data emerges.
Fed Officials’ Comments in Focus
Investors will closely follow Fed officials’ remarks, including a Thursday speech by Christopher Waller.
Lorie Logan, President of the Dallas Fed, a
cknowledged possible temporary pressures at the end of next quarter but reaffirmed ongoing balance sheet reduction.
Potential Impact on Bonds and Small Caps
Glenmede analysts noted that restarting the rate-cutting cycle could support bonds and create opportunities in fixed-income assets.
Small-cap stocks may benefit as over half their debt is tied to variable rates,
potentially boosting profits and driving a late-year rally.
Eyes on Nvidia’s Earnings
Nvidia, one of the “Magnificent Seven” (Apple, Alphabet, Amazon, Meta, Microsoft, Tesla, Nvidia),
will be focused on its results, which could ease concerns over AI investments.
Matt Maley of “Miller Tabak” said:
“Earnings will be strong, but the key question is whether they’re strong enough
to push the stock higher after nearly doubling in recent months.”
Global markets opened the week’s trading with mixed performance.
Gold prices retreated under the weight of a strong U.S. dollar,
while the Chinese yuan recorded its highest level in nine months.
Meanwhile, European equities leaned lower as investors booked profits.
Gold futures for December delivery fell 0.3% or $9.50 to $3,409 per ounce during Monday’s session,
while spot prices slipped 0.2% to $3,364.33 per ounce.
This decline came despite growing market bets that the Federal Reserve will cut interest rates at its mid-September meeting,
with expectations of a 25-basis-point reduction rising to 87.3%.
Conversely, the U.S. dollar index climbed 0.15% to 97.89 points, putting further pressure on the precious metal.
Silver, platinum, and palladium also posted simultaneous declines.
In currency markets, the yuan advanced to its strongest level since November 2024,
with the dollar easing 0.2% against the Chinese currency to 7.1499 yuan, driven by increased expectations of a U.S. rate cut.
According to the People’s Bank of China,
the reference exchange rate was set at 7.1161 yuan per dollar—stronger than analysts had forecast—reflecting the authorities’ desire to support the currency.
Equities
In equities trading, the European Stoxx 600 index slipped 0.25% to 559 points, while Germany’s DAX fell 0.45% to 24,251 points,
and France’s CAC 40 dropped by a similar margin to 7,934 points.
This decline followed a wave of profit-taking after recent rallies fueled by hopes of a U.S. interest rate cut.
In corporate developments, shares of Dutch coffee company JDE Peet’s surged 17.2% after Keurig Dr Pepper announced an $18.4 billion acquisition.
Conversely, shares of Danish renewable energy company Ørsted tumbled more than 15%
after the administration of U.S. President Donald Trump ordered a halt to an offshore wind project.
Trade Pressures Hit Korea as Germany, NZ Post Positive Data: In reviewing the latest global economic developments, Monday, August 25, 2025,
Brought mixed signals regarding the performance of major economies.
New Zealand showed positive indicators as retail sales grew better than expected,
reflecting improved consumer confidence despite high interest rates.
In Germany, the rise in the IFO Business Climate Index boosted hopes for a relative recovery in corporate sentiment towards Europe’s largest economy.
Meanwhile, South Korea saw a sharp drop in steel exports to the United States,
hitting its lowest level in over four years.
This was largely due to the new U.S. tariffs, reflecting ongoing trade tensions between the two countries.
New Zealand’s Retail Sales Grow Beyond Expectations in Q2
Data from New Zealand’s National Statistics Office released on Monday revealed a positive performance
in the retail sector during Q2 of this year, indicating improved consumer spending after a slowdown.
According to the report, retail sales rose by 0.5% quarter-on-quarter,
surpassing market expectations of a 0.2% contraction.
This marks a notable improvement compared to Q1 2024, which saw a 0.8% decline.
Core retail sales (excluding vehicles) also grew by 0.7% in Q2, up from 0.4% in Q1,
indicating a broader recovery in consumer activity.
These figures are seen as supportive of the New Zealand economy,
especially amid inflationary pressures and high interest rates,
which suggests some optimism about the resilience of domestic economic activity.
Germany’s IFO Business Climate Index Beats Expectations in August
The IFO Institute for Economic Research released data on Monday showing the Business Climate Index
In Germany, the index rose to 89 points in August, beating analysts’ forecasts of 88.7 points and improving from 88.6 points in July.
This suggests a modest recovery in corporate confidence in Europe’s largest economy.
South Korea’s Steel Exports to the U.S. Plunge to Lowest in Over Four Years
The Korea International Trade Association (KITA) reported Sunday that South Korea’s steel
exports to the United States plummeted sharply in July 2025 amid new U.S. tariff measures.
Exports fell 26% year-on-year to $283 million,
compared to $382 million in July 2024—the lowest since March 2021.
Export volumes dropped 24% to 194,000 tons, their lowest level since January 2023.
This decline followed U.S. President Donald Trump’s June 2025 decision
to impose 50% tariffs on steel and aluminum imports to revive the domestic industry.
In July, an additional 15% tariff was imposed on South Korean imports,
described as a “phase deal” to ease trade tensions.
Despite South Korean President Lee Jae-myung’s assurances that the agreement
placed his country in a balanced or better position compared to other nations,
Data indicate that Korean exports to the U.S. are under heavy pressure since the broad U.S. tariffs were imposed.
Trade Pressures Hit Korea as Germany, NZ Post Positive Data
Fitch affirms the U.S. sovereign credit rating at “AA+” with a stable outlook
On Friday, Fitch Ratings affirmed the United States’ long-term foreign currency credit rating at “AA+”,
citing the country’s large economy, high income levels,
and exceptional financing flexibility stemming from the U.S. dollar’s pivotal role as the world’s primary reserve currency.
The agency noted that the dollar’s 58% share of global reserves supports the federal government’s financing capacity,
expecting the U.S. currency to maintain dominance in trade and finance despite policy uncertainties.
Fitch also forecasted that the U.S. fiscal deficit would decline to 6.9% of GDP in 2025,
down from 7.7% in 2024, driven by resilient economic growth, strong stock market performance, and higher tariff revenues.
According to its estimates, tariff revenues are set to surge to $250 billion this year,
compared to $77 billion in 2024, strengthening the fiscal position.
This decision is aligned with S&P Global Ratings, which also maintained its “AA+” rating on the United States,
highlighting that the jump in tariff revenues provides crucial support against financial pressures arising from former President Donald Trump’s tax cuts and government spending packages.
In its report, Fitch concluded that the U.S. outlook remains stable,
reflecting confidence in the American economy’s ability to adapt to ongoing challenges.
England
Bank of England Governor: Weak growth and falling labor force participation are the UK’s key challenges
Bank of England Governor Andrew Bailey said that Britain faces a “significant challenge” in the form of weak economic growth and declining labor force participation since the COVID-19 pandemic.
Speaking at the Federal Reserve’s annual symposium in Wyoming, Bailey explained that an aging population and reduced youth participation in the workforce due to illness have added pressure on the economy, making it essential to focus on boosting productivity.
He added: “Looking at potential growth rates, this reality places greater emphasis on enhancing productivity growth, as aging will not change in the foreseeable future.”
Bailey noted that the Bank of England has shifted its focus from long-term unemployment trends to labor force participation levels, considering them a more relevant factor in the current environment.
Official data shows that the share of Britons aged 16 to 64 active in the labor market remains below pre-pandemic levels, while other advanced economies have managed to recover more quickly.
Cleveland
Cleveland Fed President: Too early to cut rates while inflation remains high
Beth Hammack, President of the Federal Reserve Bank of Cleveland, said she is hesitant about lowering interest rates as long as inflationary pressures persist, stressing the need to maintain a moderately restrictive monetary stance.
In an interview with CNBC on Friday, Hammack explained that she does not share market expectations of an imminent rate cut, despite Fed Chair Jerome Powell’s earlier comments that current conditions “may warrant” some policy easing.
She added: “Inflation has been above the target level for more than four years, and we must regain control. That is why I believe we need to continue with relatively tight monetary policy.”
Hammack also noted that her estimate of the neutral interest rate—the level that neither stimulates nor restrains the economy—is higher than that of most other Fed officials, emphasizing that she does not favor an early shift toward easing, as it could risk reigniting inflationary pressures.
Fitch Affirms U.S. Credit Rating Central Banks Warn on Inflation
It represent ownership shares in a company. When you buy a stock in a publicly listed company,
you become a shareholder in that company and own part of its assets and profits.
Stocks are usually divided into two main types:
Common Stocks: Grant the holder voting rights at shareholders’ meetings and a share of profits through dividends.
Preferred Stocks: Usually do not grant voting rights, but they guarantee the investor priority in receiving profits and regular dividends.
Why Do People Invest in it
Investing in stocks is considered one of the most important ways to grow capital in the long term. The main motivations are:
Capital Gains: By selling the stock at a higher price than the purchase price.
Receiving Dividends: Some large companies provide regular dividends that boost income.
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Best Ways to Invest
To make stock investment profitable, the investor should follow well-studied strategies:
Long-Term Investment (Buy & Hold) Buying financially strong and stable companies’ stocks and holding them for years. This strategy is suitable for building wealth over time.
Short-Term Investment (Trading/Speculation) Buying and selling stocks within days or weeks to benefit from price movements. This method requires high expertise and constant market monitoring.
Dividend Stocks Investment Preferred by investors seeking steady income, focusing on companies that offer regular dividends.
Portfolio Diversification Investing in different sectors (technology, finance, industry…) to protect against market fluctuations.
Relying on Analysis
Fundamental Analysis: Evaluating a company through its profits, debts, and market position.
Technical Analysis: Using charts and indicators to forecast price movements.
Tips for New Investors
Do not invest all your capital in one stock.
Define your goals: Are you looking for regular income or long-term growth?
Stick to a clear plan and avoid emotions or rumors.
