The proposal reportedly calls for creating a new 39.6% tax bracket for those earning $2.5 million or more

US President Donald Trump has proposed raising tax rates on the country’s highest earners, several media outlets have reported, citing sources familiar with the matter. The measure is said to offset the other cuts in Trump’s economic package.

Lawmakers are currently working to pass a massive legislative package expected to generate $1.5 trillion in savings over the next decade. The bill is aimed at advancing Trump’s policies on taxation, defense, energy, immigration, and border security, while also raising the debt ceiling.

Last month, the president ruled out a proposal to increase taxes on wealthy Americans, arguing that such a move could prove “disruptive” and compel millionaires to flee the US.

The latest proposal comes amid discussions about limiting the cost of the overall bill, for which lawmakers are trying to find funding – potentially by cutting entitlement programs, including Medicaid health coverage for low-income Americans.

The revised proposal reportedly calls for establishing a new 39.6% tax bracket for individuals with annual earnings of at least $2.5 million, or couples making $5 million per year, the New York Times reported on Thursday, citing people familiar with Trump’s request to House Speaker Mike Johnson.

Bloomberg cited an unnamed source familiar with the matter as saying that the president also reiterated his push to eliminate the carried interest tax break claimed by venture capital and private equity fund managers.

READ MORE: Trump adviser explains why US must cut military aid to Europe

Other tax hikes currently under consideration include increasing the tax on stock buybacks and further limiting companies’ ability to deduct compensation for highly paid employees, the New York Times noted.

If adopted, the proposed hike would roll back a tax cut Trump signed into law during his first presidential term that lowered the top income tax rate from 39.6% to 37%. The rate remains at 37% but currently applies to individuals with annual incomes of $626,350 or more.

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A trend has emerged but there is “no publicity” around it, Kirill Dmitriev has said

Foreign businesses that left Russia three years ago are quietly returning to the country’s market, President Vladimir Putin’s investment envoy, Kirill Dmitriev, has said.

US, European, and Asian companies pulled out of Russia due to supply problems caused by unprecedented sanctions imposed on Moscow by the West after the escalation of the Ukraine conflict in 2022. Other firms left due to the risk of facing secondary sanctions or public relations pressure.

In March, Putin ordered the government to draft clear, tight regulations for Western firms seeking to come back to the country’s market, to ensure that local producers are protected.

”The trend is there, we see that some firms are already returning. It’s just that there is no publicity around it. The process, however, is certainly underway,” Dmitriev told journalists on Thursday.

Dmitriev stated that he recently met with representatives of over 150 US companies that continue to operate in Russia despite multiple rounds of sanctions.

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“Russia has always had a very positive attitude” toward responsible partners who invest in the country, he noted. According to the investment envoy, American businesses lost over $300 billion from leaving the Russian market.

When asked about conditions for the return of Western business to Russia, the president’s economic aide noted that the government is actively engaged in “setting the rules” for the process. According to Dmitriev, it's not about putting up barriers, but giving priority to protecting domestic businesses.

Moscow and Washington have taken steps to improve relations since US President Donald Trump assumed office in January. The two countries have held a series of high-level meetings in recent months aimed at boosting diplomatic ties and resolving the Ukraine conflict.

Both Putin and Trump spoke publicly about reviving economic cooperation between the two nations.

Dmitriev visited Washington in early April, with the talks focusing on potential joint investment projects in rare earth metals and in the energy sector.

READ MORE: Lots of US companies asking to come back to Russia – Putin envoy

In recent months foreign companies that had left Russia have begun to register new trademarks in the country, signaling their potential return. Among them are McDonald's, Hyundai, Intel, Microsoft, LG, IKEA, Chanel, Rolex, and Louis Vuitton, according to data from the Russian patent office, Rospatent.

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Bilateral trade between the countries jumped 50% from February to March, according to RIA Novosti

Russia and the US posted a 50% month-over-month uptick in bilateral trade in March, RIA Novosti reported on Thursday, citing customs data. The surge was reportedly driven by a significant increase in Moscow’s exports of fertilizers and other agricultural products to the US.

Russia faced unprecedented sanctions from the West following the escalation of the Ukraine conflict in February 2022. While Russian fertilizers and grain have not been directly targeted by the restrictions, the exports have been affected by financial, shipping, and insurance constraints introduced against Moscow.

Bilateral trade reached a two-year high of $573 million in March, marking a 50% increase compared to February. This was the highest figure recorded for trade between the countries since March 2023, when it totaled $628.5 million.

The US boosted its import of Russian fertilizers to $219 million in March. America also imported significant quantities of platinum ($87.5 million), plywood ($6 million), and phosphates ($5 million) that month.

Meanwhile, Russian imports from the US reportedly remained at their February level of $50 million, and were dominated by vaccines ($14.8 million), medical instruments ($6.2 million), food products ($5.7 million), and lab equipment ($3.7 million).

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Domestic military industrial companies have grown in market value, the newspaper has said

India’s defense companies have added more than $5 billion to their market value following the escalation of tensions with Pakistan, Bloomberg has reported.

New Delhi has accused Islamabad of harboring terrorists linked to a brutal mass shooting which killed 26 civilians in Kashmir last month. On Wednesday, India said it struck nine “terrorist infrastructure” sites across the border in Pakistan in overnight attacks.

A custom market index tracking ten Indian defense firms shows them growing by around 5% since the April 22 terrorist attack “amid expectations that these firms stand to benefit from the worsening geopolitical situation,” Bloomberg wrote on Wednesday. They include India’s domestic aerospace firm Hindustan Aeronautics Ltd. and missile company Solar Industries India Ltd.

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As of Wednesday, Mumbai-based Mazagon Dock Shipbuilders Ltd. gained as much as 4.6%, while Hindustan Aeronautics gained nearly 2%.

Against the backdrop of the escalating situation with Pakistan, Indian Prime Minister Narendra Modi has reportedly postponed his upcoming trips to Croatia, the Netherlands, and Norway.

Modi will also not be among the international leaders at the upcoming celebrations in Moscow of the 80th anniversary of victory in World War II for the same reason. India will instead be represented by an alternate high-level delegation.

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In July-December, households paid more than during the 2022 energy crisis, official data suggests

Households in the EU paid the highest prices for gas in the second half of last year since records began, official data has indicated.

According to a report on Tuesday by statistics agency Eurostat, prices rose for the first time in July-December 2024 after they had abated following the 2022 energy crisis.

Energy rates shot up to unprecedented levels in 2022 after the EU imposed sanctions against Russia over the Ukraine conflict and vowed to cut its reliance on Russian gas supply. Russia’s share in EU gas imports fell from about 40% pre-conflict to 19% by early 2025, including both pipeline deliveries and liquefied natural gas (LNG), being replaced with more expensive imports from the US.

”Average prices, including taxes, rose to €12.33 ($13.96) per 100 kWh [in the second half of 2024], up from €11.04 ($12.50)… This is the highest recorded price since data collection began in 2008,” Eurostat wrote on Tuesday, attributing the increase to raised taxes and a scaling back of alleviation measures.

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There were wide disparities in household gas prices across the EU, Eurostat noted. Sweden recorded the highest figure of €18.93 ($21.43) per 100 kWh, while in terms of purchasing power, gas was the most expensive in Portugal.

Sweden's natural gas consumption accounts for approximately 2% of its total energy use, with the country mainly relying on renewable and low-carbon sources and effectively eliminating Russian imports.

Portugal primarily relies on imported LNG, with a smaller portion arriving via pipeline connections. The country gets most of its chilled gas from Nigeria (51%) and the US (about 40%). Around 4.4% of the supply came from Russia last year, compared to 15% in 2021.

The second most expensive gas in Purchasing Power Standards (PPS) terms was registered in Italy, which has minimized its imports of Russian fossil fuel. The country’s energy minister suggested in December, however, that it may resume natural gas imports from Russia if and when the Ukraine conflict is over.

The lowest price among the EU countries, both in nominal terms and PPS, was recorded in Hungary, Eurostat reported.

READ MORE: EU industry bosses want Russian gas supplies restored – Reuters

The country sources roughly 82% of its gas through pipeline imports from Russia, with LNG playing a supplementary role. Budapest has sought to deepen its energy ties with Moscow despite EU sanctions. Hungarian Prime Minister Viktor Orban warned earlier this year that soaring energy prices could cripple the bloc’s economy.

Russia has consistently said it remains a reliable energy supplier and has criticized Western sanctions and trade restrictions on its exports as violations of international law. Moscow has also redirected its energy exports toward “friendly” markets.

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The bloc is reportedly preparing a plan to end all imports, including LNG, by the end of 2027

The European Commission (EC) plans to propose legislation to phase out all Russian pipeline and liquefied natural gas (LNG) by the end of 2027, Bloomberg reported on Monday.

Since the escalation of the Ukraine conflict in 2022, the EU has been pushing to sever energy imports from its one-time biggest supplier. Despite a significant drop in volumes, Russia remains a substantial source of gas for the bloc through a pipeline via Turkey and shipments of LNG.

According to people familiar with the matter, in June the EU plans to propose a ban on new Russian gas contracts and spot purchases – with the measures set to take effect by year’s end.

The EC is also expected to adopt steps next month to phase out the remaining Russian pipeline gas and LNG tied to long-term contracts, though those would require a transition period until the end of 2027. The plans, due to be unveiled in Strasbourg on Tuesday, are still subject to change, the sources said.

A push to ban Russian LNG was previously floated during talks on the EU’s 16th sanctions package, adopted in February 2025, but was abandoned following opposition from some member states.

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France, Spain, and Belgium continue to import significant volumes of Russian LNG, accounting for 85% of Europe’s LNG imports from the sanctioned country, according to the Institute for Energy Economics and Financial Analysis (IEEFA).

While pipeline flows from Russia have dropped sharply since 2022, EU imports of Russian LNG have soared. Russia supplied 17.5% of the bloc’s LNG in 2024, second only to the US, which had a 45.3% share.

The proposed ban could create more room for US LNG exports, Bloomberg sources said. Washington has long urged the EU to reduce its reliance on Russian energy, once describing American LNG as “molecules of freedom.”

However, a recent Reuters report said banning Russian LNG could weaken the EU’s hand in trade talks with the US, where Brussels is seeking to use energy imports as leverage to lift tariffs on EU goods.

At the same time, some EU industry leaders have called for a return to cheaper Russian gas amid a worsening manufacturing crisis.

Russia has repeatedly said it remains a reliable energy supplier and has denounced Western sanctions and trade restrictions targeting its exports as illegal under international law. The country has also successfully shifted exports to ‘friendly’ markets.

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The UAE-backed G42 group’s reported expansion plans come amid growing AI competition, with China and others closing the gap with the US

The United Arab Emirates’ artificial intelligence group G42, backed by Abu Dhabi’s state-owned Mubadala investment company, is set to expand into the US, Financial Times has reported, citing corporate filings. It plans to invest tens of billions of dollars to establish itself in the market, the newspaper said.

While the US has dominated the domain, as well as the semiconductor segment, more and more nations are making concerted efforts to develop and promote globally indigenous AI technologies and chips.

In an article on Sunday, FT quoted a G42 representative as confirming that it is “committed to the USA market expansion and has established a legal entity towards that strategy.”

The publication noted that the AI company is chaired by the UAE’s national security adviser Sheikh Tahnoon bin Zayed al-Nahyan, who has spearheaded the country’s AI-centered economic diversification push.

Last April, Microsoft pledged to invest $1.5 billion into G42 in exchange for a minority stake in the UAE group, which has also attracted other US investors, including Ray Dalio’s family office and private equity firm Silver Lake.

In 2023, G42 announced it was cutting ties with Chinese hardware suppliers such as Huawei in favor of their American competitors to ensure compliance with US regulations.

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As recently as January, the debut of DeepSeek in China cast doubt on the dominance of US-based ChatGPT. Unlike its American rival, the Chinese model is freely available without a subscription, and swiftly became the most downloaded app on Apple’s and Google’s stores in nearly 60 countries. On top of that, it is said to be far less expensive to run compared to ChatGPT.

Back in March, researchers from the University of Science and Technology of China (USTC) unveiled a new superconducting quantum computing prototype, which is said to be a million times faster than Google’s top quantum processors. The Chinese chip, named Zuchongzhi-3, is also a quadrillion times more efficient than any conventionally built supercomputer, according to its developers.

In February, the newspaper Mint, citing Indian officials, claimed that New Delhi was developing its own artificial intelligence chip from scratch, with a view to reducing the country’s dependence on Western tech companies by 2027.

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Third countries are shipping the goods while hiding their place-of-origin, the outlet has reported

Chinese exporters are using various methods to avoid steep US tariffs, including shipping goods through third countries to obscure their origin, Financial Times reported on Sunday, citing trade consultants, customs officials, and social media posts.

The practice, known as “place-of-origin washing,” involves rerouting goods through countries such as Malaysia, Vietnam, Thailand, and South Korea, and re-exporting them to the United States with new certificates of origin.

The administration of US President Donald Trump recently imposed steep tariffs of up to 145% on Chinese goods, citing national security and trade imbalance concerns. Chinese exporters fear that the tariffs will deprive them of access to one of their most important markets.

According to the outlet, Chinese social media platforms are awash with ads offering “place-of-origin washing.”

“The US must know of it,” one Malaysian salesperson has told FT. “It cannot get too crazy so we are controlling the amount [of orders we take].”

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According to FT, authorities in Malaysia, Vietnam, and Thailand are looking into the alleged practice and are implementing measures to tighten origin checks.

Chinese exporters typically sell goods “free on board” (FOB), transferring liability to buyers once the goods leave China, which complicates enforcement efforts, the outlet added.

The other reported circumvention method is mixing high-cost items with cheaper goods, so exporters can underreport overall values of shipments, the FT quoted a cross-border trade consultant as saying. There are intermediaries who reportedly offer “grey area” tariff workarounds to small- and medium-sized enterprises.

READ MORE: China ‘assessing’ US tariff talks – Commerce Ministry

Beijing has accused Washington of “economic bullying,” retaliating with 125% duties on all US imports and implementing export controls. The Chinese Commerce Ministry said last week that it was evaluating the possibility of trade negotiations with the US but reiterated that Washington must show “sincerity” by canceling its tariffs if it wants meaningful dialogue.

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Trade “should not be a weapon,” the billionaire investor has said

Warren Buffett has criticized US President Donald Trump’s trade policy, warning that the White House’s escalating use of tariffs amounts to turning trade into “an act of war.”

Speaking at Berkshire Hathaway’s annual shareholder meeting on Saturday, the billionaire investor argued against using tariffs as a weapon, saying balanced trade is essential for global prosperity and peace.

Since returning to office in January, Trump has imposed sweeping tariffs, culminating in his ‘Liberation Day’ tariffs introduced on April 2. They target more than 90 US trade partners. Most were paused for 90 days, though a baseline 10% remains in effect. China was excluded from the pause and was hit with 145% on all imports. Beijing retaliated with 125% tariffs and new export controls on US goods.

Buffett did not name Trump directly, but warned that America’s trade stance could isolate it globally.

“I don’t think it’s a good idea to design a world where a few countries say, ha ha ha, we’ve won. And other countries are envious,” Buffett stated. “It’s a big mistake in my view when you have 7.5 billion people who don’t like you very well, and you have 300 million who are crowing about how they have done.”

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Calling for a change in direction, Buffett said US policy should focus on mutual prosperity.

”I do think that the more prosperous the rest of the world becomes... the more prosperous we’ll become and the safer we’ll feel… We should be looking to trade with the rest of the world,” he said.

”Trade can be an act of war [but] balanced trade is good for the world. The more balanced trade there is, the better… The main thing to do is not use trade as a weapon,” he added.

READ MORE: Warren Buffett reveals plans for his money after death

The US-China tariff standoff has roiled markets and prompted the IMF to cut its global growth forecast from 3.3% to 2.8% for 2025. Analysts have warned that the full implementation of Trump’s tariff plan could destabilize global trade and trigger a US recession.

Buffett, who turns 95 in August, also used the meeting to announce his retirement by the end of the year, surprising shareholders. He said he would recommend Vice Chairman Greg Abel, long considered his successor, to lead Berkshire Hathaway. Abel currently oversees the company’s noninsurance businesses.

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The EU is ready raise imports of US goods by $56 billion to address the trade imbalance, the bloc’s trade commissioner says

The EU wants to substantially increase purchases of goods from the US, according to European Trade Commissioner Maros Sefcovic, as cited by Financial Times. The move could help the bloc secure the elimination of import tariffs proposed by US President Donald Trump, the official has said.

As part of his sweeping ‘Liberation Day’ tariffs on major trading partners, Trump sharply raised duties on US imports from the 27-nation bloc. The US president sees the tariff campaign, which targeted over 90 countries, as a solution to what he calls unfair trade imbalances.

“If what we are looking at as a problem in the deficit is €50 billion ($56 billion), I believe that we can really . . . solve this problem very quickly through LNG purchases, through some agricultural products like soyabeans, or other areas,” Sefcovic said on Thursday in an interview with the newspaper.

He emphasized that the bloc would not accept the 10% tariffs on its goods being kept in place as a fair resolution. He also warned that it would be “very difficult” to strike a deal that is “clearly good and acceptable for our member states and our European parliament.”

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Earlier this year, the Trump administration announced a sweeping 20% tariff on all EU goods and a 25% tariff on all car imports in an effort to eliminate the trade deficit with the bloc. Brussels was set to introduce 25% retaliatory tariffs on US imports before Trump announced a 90-day pause on most tariffs to allow for talks. However, the 10% baseline tariff and 25% tariff on certain goods remain in place.

European Commission President Ursula von der Leyen has offered Washington a deal whereby tariffs on all industrial goods would be removed. However, Trump has rejected the zero-for-zero tariffs proposal, saying that it doesn’t solve the problem of the trade imbalance.

Trade volumes between the US and the EU amounted to $975.9 billion in 2024, according to official data tracked by the Office of US Trade Representative. The US purchased $605.8 billion worth of EU goods, while the bloc’s imports from the US amounted to $370.2 billion.

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A rise in gas exports along with favorable price dynamics were major drivers of financial growth, the company has said

Russian energy giant Gazprom posted a profit in 2024 after recording its first loss in more than two decades the previous year. The increase is attributed to improved gas exports to countries such as China, the company said.

Gazprom, once the main gas supplier to the EU, dramatically reduced its exports to the region three years ago following Ukraine-related sanctions imposed by the West and the sabotage of the Nord Stream pipelines. Russia’s share of EU pipeline gas imports dropped from over 40% in 2021 to around 11% in 2024.

Gazprom’s full-year 2024 net profit amounted to 1.2 trillion rubles ($14.76 billion), driven by an improved gas business and rising interest income from financial investments in its gas business and increased interest income from financial investments, according to a statement released by the company on Wednesday.

“Gazprom has strengthened its position across a number of key financial indicators in 2024, confirming the effectiveness and resilience of its business model,” the company’s deputy CEO, Famil Sadygov, said, commenting on the results.

Sadygov attributed the improved performance to rising gas exports to countries such as China, and higher interest income.

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Once Russia’s most valuable company, Gazprom suffered record losses last year due to plummeting sales to the EU, once its key market. The company reported a net loss of $6.8 billion for 2023, the first time since 1999. This stood in stark contrast to the net profit of $13.2 billion recorded in 2022.

In 2024, revenue for Gazprom Group – which includes gas, oil, and electric power businesses – surged 25% to 10.7 trillion rubles ($130.8 billion), making it the company’s second-highest results on record. The all-time high of 11.7 trillion rubles ($143 billion) was reached in 2022, when European gas prices soared amid the EU’s decision to curb imports from Russia following the escalation of the Ukraine conflict.

Gazprom’s spending declined by 3% to 2.4 trillion rubles ($29.5 billion). The company said its debt remained unchanged at 6.7 trillion rubles, adding that it held more than 1 trillion rubles in cash reserves.

“This reserve of funds on the balance sheet ensures the Group’s high financial stability even under sanctions pressure,” Sadygov said.

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The figure was raised by more than 200% as Moscow prepares for lower oil prices, the Finance Ministry has said

Russia’s budget deficit is set to soar to more than three times the government’s original target for 2025, according to the Finance Ministry. The revised outlook comes amid falling global oil prices and escalating trade tensions worldwide.

Last month, Finance Minister Anton Siluanov warned of potential budgetary stress due to declining oil revenues and global economic instability, saying the ongoing trade wars, which are reducing export opportunities for many countries including Russia, remain a major risk.

This year, the overall fiscal deficit is forecast at 1.7% of GDP, compared to the previously projected 0.5%, according to a statement released by the ministry on Wednesday. In monetary terms, the budget shortfall is expected to total 3.8 trillion rubles ($46.3 billion).

“The budget priorities remain unchanged: Social support for citizens, funding for national defense and security, and assistance for the families of participants in the special military operation, ensuring the country’s technological leadership” Siluanov said, commenting on the revised forecast.

The ministry’s economic growth outlook for 2025 remains unchanged at 2.5%, but the inflation estimate has been raised from 4.5% to 7.6% by the end of the year. The spending plan for 2025 was also increased by 830 billion rubles ($10.1 billion).

READ MORE: Russian finance minister issues budget warning

The forecast for the price of Russian oil has been lowered from $69.7 to $56 per barrel. Projected oil and gas revenues will amount to 8.32 trillion rubles ($100.5 billion), or 3.7% of GDP, the ministry said.

Global oil prices have been declining in recent weeks due to increased supply and economic uncertainty. Demand for oil has been weakened by the global economic slowdown, driven in part by tensions over trade. In April, oil prices dropped by more than 11%.

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Blockchain technology can perform financial transactions more efficiently, the president’s son has said

Banks could face extinction within a decade if they fail to embrace blockchain technologies, US President Donald Trump’s second son Eric, a crypto entrepreneur, has warned.

In an interview with CNBC on Wednesday, Eric Trump lambasted what he described as the slowness and inefficiency of the traditional banking system.

“The modern financial system is broken, it’s slow, it’s expensive,” he told the business news channel.

Trump, who launched a bitcoin mining company called American Bitcoin in March, said he turned to digital currencies and decentralized finance when he realized that “our banking system favors the ultra-wealthy” and “was weaponized against the vast majority of people in our country.”

Decentralized finance platforms allow individuals to conduct transactions directly with one another, often with low or no fees, something traditional banks rely on to generate income.

Trump has argued that blockchain technology can perform all the functions of traditional banking systems more efficiently.

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“I’m telling you, if the banks don’t watch what’s coming, they’re going to be extinct in 10 years,” he said.

In the interview, Trump also criticized the SWIFT interbank financial messaging network as an “absolute disaster,” highlighting the delays and inefficiencies in cross-border transactions.

US President Donald Trump’s family have expanded into the cryptocurrency sector, launching a decentralized finance project called World Liberty Financial. They have also announced plans for a dollar-backed stablecoin.

In 2021, major American financial services company Capital One severed ties with over 300 accounts linked to the Trump family and their businesses. The move came two months after the January 6 Capitol riot, where Trump’s supporters attempted to overturn his defeat in the 2020 presidential election.

Last month, Eric and his brother Donald Jr. filed a lawsuit against Capital One, claiming its decision to close the accounts was an attack on free speech and free enterprise, and a response to their father’s political views.

READ MORE: Trump’s tariffs trigger crypto market sell-off

Once a crypto critic, President Trump has changed his position on digital currencies, attracting significant industry support. Since returning to the White House, he has pledged to make the US the “crypto capital of the world” and to serve as a “crypto president.”

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The cancelation comes in response to blowback from the White House, CNBC reports

US online retailer Amazon has scrapped plans to display the cost of recent trade tariffs to customers, CNBC reported on Tuesday, citing the e-commerce giant. Media reports about the alleged plan sparked a heated response from Washington, where it was labeled “hostile.”

Earlier in the day, Punchbowl News reported, citing a source familiar with Amazon’s plans, that the retailer would “soon” begin showing tariff costs alongside product prices.

“This was never approved and is not going to happen,” Amazon spokesperson Tim Doyle told CNBC, clarifying that the company had merely “considered” listing import charges on certain items sold within Haul, a section of the platform which features ultra-low-cost products shipped directly from manufacturers in China.

A source familiar with the matter told CNBC that Amazon had considered adding a separate line item to Haul products in response to US President Donald Trump’s move to eliminate the so-called de minimis trade loophole. This exemption, set to expire on May 2, currently allows duty-free imports of packages valued at under $800.

The source emphasized that the plan was unrelated to Trump’s 145% tariff on Chinese imports.

The initial report of Amazon’s alleged plan triggered a backlash from the White House. During a daily press briefing, Press Secretary Karoline Leavitt called the reported move a “hostile and political act.”

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“Why didn’t Amazon do this when the Biden administration hiked inflation to the highest level in 40 years?” Leavitt asked.

According to a source cited by NBC News, Trump personally called Amazon founder and former CEO Jeff Bezos on Tuesday morning to express his indignation about the Punchbowl report.

The president later told reporters that Bezos “was very nice, he was terrific” during the call and that “he solved the problem very quickly.”

Earlier this month, Trump introduced sweeping tariffs on several countries, with Chinese goods facing duties of up to 145%. The president argued that the measure would help revive domestic manufacturing and correct a skewed trade balance. In response, Beijing has imposed its own tariffs and export restrictions.

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Companies have reportedly scaled down NYC Pride sponsorships over political pressure and economic concerns

Major corporations have reduced their support for New York City Pride events in 2025, the Wall Street Journal has reported. Companies are reportedly reassessing their LGBTQ sponsorships under mounting political pressure and economic concerns.

Financial services giant Mastercard has confirmed it will not renew its platinum-level sponsorship of the city’s annual LGBTQ march. However, the company said it will still participate in the June parade and other events despite the cutback.

“Mastercard is a longstanding supporter of the many communities of which our employees are members, including the LGBTQIA+ community globally,” the WSJ quoted a company spokeswoman as saying.

PepsiCo, Nissan, Citi, and PricewaterhouseCoopers have also opted not to renew their corporate sponsorships this year, according to the outlet. However, many companies are not withdrawing entirely, the article adds, with some maintaining a paid presence through branded booths or supporting smaller Pride events.

Nissan’s move was part of a broader review of marketing and sales spending, a company spokesman told the WSJ. Other Pride events such as those in St. Louis and San Francisco are reportedly losing key sponsors like alcoholic beverage companies Anheuser-Busch InBev and Diageo, though the latter will continue sponsorships through its Smirnoff brand.

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Eve Keller, co-president of the United States Association of Prides, attributed the pullback to “multilayered” factors including political pressure on diversity, equity, and inclusion (DEI) initiatives and economic uncertainty driven by recent tariff announcements by US President Donald Trump. Keller told the Journal that fear of political backlash has even led some companies to request removal of their logos from official Pride materials.

Changes to NYC Pride’s sponsor packages, which no longer include access to certain marketing events, also contributed to some companies’ decisions not to renew, sources familiar with the matter told the newspaper.

A recent survey by Gravity Research found that nearly 40% of executives plan to reduce their Pride-related activities this year, up sharply from 9% last year. Concerns about potential DEI investigations by the federal government have been cited as the primary reason for the cancellations, followed by potential backlash from conservative activists and consumers, according to the survey.

Despite the shifting landscape, two-thirds of last year’s NYC Pride sponsors have recommitted for 2025, according to the WSJ. Target, which faced boycotts last year, will reportedly reaffirm its support and return as a platinum sponsor.

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Some blacklisted tankers are reportedly back in operation due to US President Donald Trump’s approach to sanctions

Russia’s oil exports have been on the rise for the past two weeks as several tankers that were sanctioned under the previous US administration have resumed hauling Russian crude, Bloomberg has reported, citing vessel-tracking data.

Western countries have placed restrictions on Russian vessels seeking to reduce Moscow’s oil revenues amid the ongoing Ukraine conflict.

The outlet cited US President Donald Trump’s refraining from imposing additional sanctions as the reason several of the vessels sanctioned under former President Joe Biden are back in operation.

“At least 18 of the 39 ships blacklisted by the US in 2023 and 2024 are now regularly hauling barrels from Russia’s ports, having previously been idle since they were sanctioned,” Bloomberg wrote on Tuesday.

Last year, the US and the European Union sanctioned Sovcomflot, Russia’s largest state-owned shipping company, along with 14 of its crude oil tankers. Washington and Brussels have also targeted Russia’s so-called shadow fleet, a network of older tankers used to circumvent the restrictions.

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Since assuming office in January, US President Donald Trump has been actively involved in diplomatic efforts to broker a ceasefire between Moscow and Kiev. His approach to sanctions has also been more restrained compared to the previous administration.

While Trump has publicly threatened to impose additional “large-scale” or secondary sanctions on Russia if it does not agree to a peace deal, he has also floated the possibility of easing certain restrictions as part of negotiations.

Bloomberg also noted that Russia’s income from oil exports was little changed at about $1.3 billion a week, which suggests that higher flows were offset by lower prices. Crude prices have been declining in recent weeks due to increased supply and economic uncertainty.

READ MORE: Trump tariff shock sends oil to four-year low

Before the escalation of the Ukraine conflict in 2022, nearly half of Russian crude exports were destined for European countries. By 2024, that share plummeted to 10% due to EU bans. Russia redirected its supply to China and India, which accounted for 87% of Russian crude exports in 2024, up from 35% pre-conflict, according to figures from Oxford Analytica.

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Over $2.7 trillion was spent on the sector in 2024, according to the Stockholm International Peace Research Institute

Global military spending increased more year-on-year in 2024 than at any time since the Cold War, according to research by the Stockholm International Peace Research Institute (SIPRI).

The report, published on Monday, noted particularly rapid growth in Europe and the Middle East.

Overall expenditure has exceeded $2.7 trillion, marking the steepest annual rise in more than 30 years, according to the report.

“Over 100 countries around the world raised their military spending in 2024,” SIPRI wrote, adding that governments were “increasingly prioritize[ing] military security,” often at the expense of other budget areas.

Ukraine had “the largest military burden” globally, with its spending rising to nearly $65 billion, equivalent to 34% of its GDP, according to the report.

Military spending in Europe, including Russia, climbed to nearly $700 billion in 2024, making the continent “the main contributor” to the global increase. Several countries in Central and Western Europe posted “unprecedented rises,” with Germany’s spending jumping 28% to more than $88 billion.

“For the first time since reunification Germany became the biggest military spender in Western Europe, which was due to the €100 billion special defense fund announced in 2022,” Lorenzo Scarazzato, a researcher with the SIPRI, said.

Berlin was also the world’s fourth-largest military spender in 2024, after the US, China, Russia and before India, which together accounted for 60% of the global total.

The study found that all NATO members have boosted their military expenditure, spending a combined $1.5 trillion – about 55% of global military expenditure – in 2024.

The US remained NATO’s largest contributor, spending $997 billion – about two-thirds of the military bloc’s total and 37% of global expenditure. European NATO members also ramped up spending to a combined $454 billion.

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SIPRI researcher Jade Guiberteau Ricard said the “rapid” rise in European NATO spending was driven mainly by what she called “the ongoing Russian threat” and “concerns about possible US disengagement within the alliance.”

US President Donald Trump has repeatedly urged European allies to invest more in their militaries, arguing that Washington bears too much of the burden. NATO countries have outlined plans to further increase military budgets, citing potential Russian attack. The EU has announced plans to borrow hundreds of billions of euros to spend on militarization, asserting the need to deter Russia.

Moscow has denied any aggressive intentions, with President Vladimir Putin describing the speculation as “complete nonsense.”

The report showed that military spending in the Middle East also rose sharply, reaching an estimated $243 billion in 2024, driven by the war in Gaza and broader regional instability.

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The state’s rapid growth, fueled by tech and clean energy, has made it the world’s fourth-largest economy

The US state of California’s economy has overtaken Japan’s to become the fourth-largest in the world, the office of the state’s governor, Gavin Newsom, has announced.

California’s nominal GDP reached $4.1 trillion in 2024, edging out Japan’s $4.02 trillion, according to data from the International Monetary Fund and the US Bureau of Economic Analysis (BEA) released earlier this week. The state now trails only the US itself at $29.18 trillion, China at $18.74 trillion, and Germany at $4.65 trillion.

“California isn’t just keeping pace with the world – we’re setting the pace,” Newsom declared in a statement on Wednesday. “Our economy is thriving because we invest in people, prioritize sustainability, and believe in the power of innovation.”

The Golden State also outpaced the top three economies in growth, expanding by 6% last year compared to the US average of 5.3%, China’s 2.6%, and Germany’s 2.9%, the announcement read. Over the past four years, California’s economy grew at an average nominal rate of 7.5%.

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Analysts attribute the state’s rapid gains to its booming technology, entertainment, and clean energy sectors. California, the most populous US state with nearly 40 million residents, is also a leader in manufacturing, agriculture, and tourism.

Meanwhile, Japan’s economy has struggled. Despite a slight uptick in GDP last quarter, the IMF this week cut its growth forecast for Japan to 0.6% for 2025, down from the 1.1% projected earlier this year, following just a 0.1% increase in 2024. Economists cite Japan’s shrinking workforce, stagnant labor productivity and rapidly rising commodity prices as the major obstacles to sustained growth.

“Japan’s economic fundamentals remain weak,” analysts at Deloitte said this week, warning that without significant reforms to boost innovation and efficiency, the country’s long-term prospects will continue to decline.

They warned that external pressures may also add to Japan’s economic troubles. Earlier this month, US President Donald Trump imposed a 24% tariff on Japanese exports, although most tariffs have been paused until July. The 10% baseline tariff remains in place, along with a 25% duty on cars. The tariffs are expected to further weigh down Japan’s export-reliant economy, given that the US was the country’s largest export market in 2024.

READ MORE: US ready to walk back some China tariffs – Trump

Meanwhile, California has formally pushed back against Trump’s tariffs. The state became the first to sue the Trump administration over the new duties, arguing the measures would harm key California industries, including agriculture and technology.

“We’re not going to sit back while reckless trade wars endanger the livelihoods of millions of Californians,” Newsom stated.

However, the state grapples with significant social problems. The state's poverty rate rose from 11.7% in fall 2021 to 13.2% in early 2023, with nearly one-third of residents living at or near the poverty line, according to the California Poverty Measure, developed by the Public Policy Institute of California and the Stanford Center on Poverty and Inequality.

Homelessness remains a pressing issue, with voter frustration mounting over the state's inability to address the crisis effectively. A recent poll from Politico and UC Berkeley’s Citrin Center indicated that over a third of California voters support local laws permitting police to arrest individuals camping outside if they refuse shelter.

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Yahoo is reportedly preparing to acquire the web browser if a US federal court orders its sale in an antitrust case

Yahoo is ready to buy popular web browser Chrome if a US federal court orders the current owner, Google, to divest from it in an anti-monopoly lawsuit, Bloomberg has reported.

According to the outlet, the general manager for Yahoo Search, Brian Provost, testified at Google’s trial in Washington on Thursday, stating that Chrome is “arguably the most important strategic player on the web” and that his company estimates that the browser’s sale prices would be in the tens of billions of dollars.

“We would be able to pursue it with Apollo,” Provost said, referring to Yahoo’s parent company – Apollo Global Management.

Provost’s testimony came as part of a three-week hearing against Google to determine how to get the company to remedy its overwhelming dominance in internet search, in which Chrome plays a major part, according to the US Department of Justice. The trial began on Monday following last year’s ruling by a US judge that Google had illegally monopolized the internet search market.

Google attorney John Schmidtlein has dismissed the government’s proposed remedies as “extreme” and “fundamentally flawed,” arguing that the company won its place in the market “fair and square.”

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Schmidtlein suggested that the government’s demand that Google sell off Chrome would “reward competitors with advantages they never would have earned in a market where Google competed.”

Other contenders to take Chrome off of Google’s hands include ChatGPT developer OpenAI and AI search engine Perplexity.

As reported by TechCrunch, Perplexity CEO Aravind Srinivas has admitted that his company wants a web browser to help further develop its AI model, and “get data even outside the [Perplexity] app to better understand you.”

“Because some of the prompts that people do in these AIs is purely work-related. It’s not like that’s personal,” he explained on the TBPN podcast.

“On the other hand, what are the things you’re buying; which hotels are you going [to]; which restaurants are you going to; what are you spending time browsing, tells us so much more about you,” he added, noting that this information could be used to build a better user profile and “show some ads” in the ‘discover’ feed.

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UK households have grown increasingly downbeat about the outlook for the country’s economy, data shows

UK consumer confidence has dropped to its lowest point since 2023, driven by soaring bills, tax increases and fears that US tariffs could push living costs even higher for British households, a survey published on Friday has shown.

The consumer confidence index fell by four points to -23 in April, according to the latest update from data company GfK, marking the lowest level in 17 months and well below economists’ expectations of a decline to -21.

The index, which averages responses to key sentiment questions, ranges from -100 to +100. Positive scores reflect consumer optimism, while negative readings indicate a prevailing sense of pessimism.

The index is closely monitored by the British government and the Bank of England for early warning signs on the economy since the early 1970s.

The drop represents a stark warning for the UK economy and reflects how British consumers were hit by a mix of domestic tax hikes, surging household bills, and growing concerns over tariffs imposed by US President Donald Trump.

The country faces a 10% tariff on most goods and 25% on steel, aluminum and automotive exports to the US. Washington and London are currently negotiating a new trade agreement, with Trump having paused the imposition of tariffs for 90 days.

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While the UK has been spared the worst of the levies imposed by Trump earlier this month, households have become much more downbeat about the outlook for the British economy.

“Consumers have not only been grappling with multiple April cost increases in the form of utilities, council tax, stamp duty, and road tax, but they are also hearing dire warnings of renewed high inflation on the back of the Trump tariffs,” said Neil Bellamy, consumer insights director at GfK.

April’s reading of -23 marks the lowest level since the Labour Party assumed office last summer, according to the survey.

The UK’s energy regulator, Ofgem, announced a 6.4% increase in the energy price cap effective from April 1, raising the average annual energy bill for a typical household from £1,738 ($2,172) to £1,849 ($2,311).

The cost of living crisis fueled by high interest rates and rising energy prices has taken a toll on British households over the past two years, forcing millions of families to cut spending. Meanwhile, manufacturers have been slashing production in response to a downturn in orders from domestic and export markets, multiple previous surveys showed.

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The country needs to revise rules in order to weather falling oil revenues and global trade wars, Anton Siluanov has said

Russia should brace for potential budgetary stress due to declining oil revenues and global economic instability, Finance Minister Anton Siluanov has warned.

At a recent ministry meeting, Siluanov backed boosting fiscal reserves and revising an “outdated” budget rule that oil revenues exceeding a $60-per-barrel threshold are diverted to the National Wealth Fund (NWF).

Designed to shield the economy from commodity price swings, particularly in oil, Sulianov argued the fund should cover “three years of uninterrupted financing of expenditures.”

“The current global situation requires special attention to the resilience of public finances to various scenarios of global economic development,” he said on Wednesday. The main risk remains the “unfolding of trade wars,” which are cutting export opportunities for countries, including Russia.

Spending must be adjusted to reflect the “new realities,” according to the minister.
“We’ll have to be more modest in our desires and ensure a greater return on every budget ruble,” he stated.

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Russia’s oil and gas revenues comprise just a quarter of the federal budget, Sulianov noted, a significant reduction in dependance upon the sector. Oil and gas revenues totaled 2.64 trillion rubles ($28.4 billion) in the first quarter of 2025, down 9.8% compared to the same period in 2024, according to preliminary Finance Ministry estimates.

Prime Minister Mikhail Mishustin also addressed the meeting, urging the ministry to focus on macroeconomic stability and prepare to react to market fluctuations.

”It is important to pay special attention to measures to prevent budget risks,” Mishustin said. “We must, of course, be prepared for changes and work out a variety of scenarios based on the current situation.”

Oil prices have accelerated their decline since early April, pressured by US trade tariffs and OPEC+’s unexpected decision to boost production. Member countries agreed to increase output by 411,000 barrels per day starting in May, three times the originally planned hike of 135,000 barrels per day.

READ MORE: Trump tariff shock sends oil to four-year low

On April 9, the price of Russia’s Urals crude fell below $50 per barrel for the first time since June 2023. In March, the Finance Ministry said it expects the average oil price in 2025 to be closer to $60 per barrel, down from the budgeted $70. The Economic Development Ministry’s forecast is even lower, at $56 per barrel.

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The US president earlier signaled a potential easing of the proposed tariffs and said he has discussed the situation with Beijing

Beijing has pushed back on US President Donald Trump’s claims that tariff negotiations are underway between the two countries. No talks have taken place and reports to the contrary are “fake news,” Chinese Foreign Ministry spokesperson Guo Jiakun said on Thursday.

Guo’s remarks followed Trump’s comments on Wednesday hinting at a potential reversal of his tariff policy. The US president said tariffs on Chinese goods introduced earlier this month would “come down substantially” and promised a “fair deal with China,” claiming that he was “actively” engaging with Beijing.

“This is all fake news,” Guo said at a press briefing. “As far as I know, China and the US have not held consultations or negotiations on the tariff issue, let alone reached an agreement.”

Guo said Beijing remains open to dialogue but stressed that “the dialogue and negotiation must be equal, respectful and mutually beneficial.”

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He reiterated the Chinese position that the tariff conflict “was initiated by the US” and warned that Beijing is prepared to “fight to the end” against what it sees as unfair and illegal US trade practices.

Earlier this month, on what he called ‘Liberation Day’, Trump imposed sweeping tariffs, including 145% on Chinese imports.

The move was part of a broader campaign targeting more than 90 countries to address what Trump has characterized as unfair trade imbalances. While most new tariffs were paused for 90 days – with a baseline 10% still in place – China was excluded. Beijing responded by slapping 125% tariffs on US goods and restricting key exports.

Tensions between the world’s two largest economies have contributed to global market volatility. On Tuesday, the IMF downgraded its global growth forecast, citing trade uncertainty as a major drag on output. The IMF’s World Economic Outlook projects global GDP growth at 2.8% this year, down from 3.3% in 2024. It also cut the US growth forecast for 2025 to 1.8%, from 2.8% last year. China’s growth is expected to slow to 4% due to attempts to counter the effects of Washington’s tariffs.

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Washington has imposed 145% tariffs on Chinese goods in an escalating trade conflict with Beijing

US President Donald Trump has signaled a potential easing of trade tensions with China, announcing that tariffs on the country’s goods would be lowered significantly. He added, however, that “it won’t be zero.”

As part of his sweeping ‘Liberation Day’ tariffs on major trading partners, Trump sharply raised tariffs on Chinese goods to a staggering 145%. The move deepened the trade conflict between the world’s two largest economies, despite growing concerns about the global economic impact.

On Tuesday, Trump seemed to change his approach. “We’re going to be very good to China, [I] have a great relationship with [Chinese] President Xi [Jinping],” he told reporters. “145% is very high and it won’t be that high. It’ll come down substantially. But it won’t be zero.”

Earlier on Tuesday, Treasury Secretary Scott Bessent reportedly said the current trajectory of the trade war is unsustainable, raising hopes for a shift in policy.

The measures against China are part of Trump’s broader tariff campaign targeting over 90 countries, aimed at addressing what he calls unfair trade imbalances. While the hikes have been paused for most nations for 90 days, China was excluded. In response, Beijing imposed 125% tariffs on US goods and curbed key exports.

As tensions mount, China has been stepping up diplomatic outreach, engaging with officials from the EU, Japan, and South Korea.

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Asked about Trump and Bessent’s comments, the Chinese Foreign Ministry on Wednesday urged Washington to end its “threats and coercion” and pursue talks based on “equality, mutual respect and reciprocity.”

Spokesperson Guo Jiakun said applying “maximum pressure” is not the way to strike a deal, and “it simply won’t work.”

China’s position is “very clear,” he stated. “We do not want to fight, but we are not afraid… we’ll fight till the end.” Nevertheless, the “door is wide open” for negotiations, he added.

Rising US-China trade tensions and broader American tariffs have fueled global economic uncertainty, triggering turmoil in the financial markets.

On Tuesday, the IMF cut its global growth outlook, citing a “significant slowdown” driven by tariff-related uncertainty.

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Klaus Schwab, the founder and ex-chairman of the World Economic Forum, resigned earlier this week without giving a reason

The World Economic Forum (WEF) has launched an internal investigation into whistleblower allegations of misconduct involving its founder and former chairman, Klaus Schwab, the Wall Street Journal reported on Tuesday, citing a statement from the organization.

The report came one day after Schwab stepped down as chair of the WEF’s board of trustees without publicly explaining his decision. His resignation ended more than 50 years at the helm of the WEF, which he founded in 1971 and built into the influential host of the annual Davos summit of world leaders and chief executives.

According to the WSJ, the WEF board received an anonymous letter last week, reportedly from current and former employees, accusing Schwab and his wife, Hilde – also a former WEF employee – of financial and ethical misconduct. The letter claimed Schwab used the organization’s funds for personal expenses and instructed junior staff to withdraw cash for private use, including massages during official trips. It also alleged that Hilde Schwab used WEF money for luxury hotel stays during personal trips.

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The letter raised additional concerns about Schwab’s leadership, including claims he fostered a workplace environment where sexual harassment and discriminatory behavior went unchecked.

WEF sources told the outlet that the board convened an emergency meeting on Easter Sunday and voted to open an investigation, prompting Schwab to step down – despite earlier plans for a phased leadership transition through 2027.

In a statement, the WEF confirmed the board’s unanimous decision to pursue an independent probe after consulting external legal counsel. The organization added, however, that while it takes the allegations seriously, they “remain unproven,” and it will “await the outcome of the investigation to comment further.”

A spokesperson for the Schwabs denied the allegations, stating that the family always reimbursed the organization for personal expenses during business trips. The spokesperson added that Schwab intends to sue those responsible for the letter and “anybody who spreads these mistruths,” noting that he forfeited a pension of 5 million Swiss francs ($6 million) from the WEF to demonstrate good faith.

READ MORE: Davos executives accused of using ‘N word’ around black workers — WSJ

The new claims come in the wake of similar accusations last year regarding toxic workplace culture, sexual harassment, and racial discrimination at the WEF. In March, it reported to sponsors that a review of the earlier allegations found no legal violations and did not substantiate misconduct by Schwab.

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The government has reportedly cut its GDP forecast in response to the US tariff hike and uncertainty over Washington’s trade policy

Germany is facing the third straight year of economic stagnation following the latest US tariff hike and growing uncertainty over Washington’s trade policy, Handelsblatt reported on Tuesday, citing an internal government forecast.

Earlier this month, US President Donald Trump imposed a 20% tariff on all EU goods and 25% on steel, aluminum, and car imports to address what Washington calls an unfair trade imbalance. While Brussels prepared 25% retaliatory tariffs, Trump later paused most new tariffs for 90 days to allow for negotiations. However, a 10% baseline tariff and the targeted 25% remain in place.

According to the report, Chancellor Olaf Scholz’s outgoing government has revised its 2025 GDP forecast for Germany to 0%, down from 0.3% in January. This would mark the first time in history that the EU’s largest economy has failed to grow for three consecutive years, after contracting in 2023 and 2024. The government expects a modest rebound in 2026, with growth now projected at 0.9%, down from an earlier estimate of 1.1%.

Data from the Federal Statistical Office shows that the US was Germany’s top trading partner last year, making the impact of tariffs particularly significant.

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Sources say uncertainty over the tariffs has prompted German companies to delay investments until the situation becomes clearer, which led to the change in the projections. If the full 20% tariffs are enacted, growth could drop even further, the sources noted. The Kiel Institute for the World Economy and Munich’s Ifo Institute earlier estimated the German economy could shrink by 0.3% in this scenario.

Business underperformance has added to the economic gloom, but sources said some uncertainty could ease due to the government’s recently approved €500 billion ($570 billion) infrastructure fund and reforms to the debt brake. Relief could also come with a change in leadership, they added. Incoming Chancellor Friedrich Merz, who is set to take office in May, has vowed to revive the country’s economic competitiveness.

Sources told Handelsblatt that the figures could shift depending on Trump’s next moves and the outcome of talks between Brussels and Washington.

European Commission President Ursula von der Leyen earlier proposed a “zero-for-zero” tariff deal on industrial goods between the EU and the US, but Trump rejected the offer, calling it insufficient and demanding that the EU agree to purchase $350 billion worth of American energy in exchange for tariff relief.

READ MORE: Trump tariffs could cost EU $1.25 trillion – study

At a meeting last week with Italian Prime Minister Giorgia Meloni, Trump said a deal between the EU and the US would “100 percent” be reached “at a certain point,” but added that he is “in no rush” to finalize it.

The report follows a grim forecast from the IMF, which also cut Germany’s 2025 growth outlook to 0.0% this week, predicting it will be the only G7 economy to stagnate this year as its export-driven industries are especially vulnerable to global trade tensions.

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The International Monetary Fund has slashed its 2025 global growth outlook

The international economic system is undergoing a fundamental transformation due to mounting uncertainty over US trade policy, the International Monetary Fund (IMF) has warned, while announcing a cut in its global growth forecast.

Since returning to office in January, US President Donald Trump has imposed sweeping trade restrictions, culminating in what he called ‘Liberation Day’ tariffs introduced on April 2 at levels not seen since the Great Depression, the IMF said on Tuesday.

Its World Economic Outlook report projects that global output will slow to 2.8% this year, down from 3.3% in 2024. As recently as January, the IMF had forecast growth would hold steady in 2025.

“The global economic system under which most countries have operated for the last 80 years is being reset, ushering the world into a new era,” IMF chief economist Pierre-Olivier Gourinchas said.

READ MORE: China warns countries not to align with US in trade

He explained that the existing rules are being challenged, while new ones have yet to take shape. The sudden tariff hikes and broader policy uncertainty could significantly slow global growth, Gourinchas said.

The IMF lowered its forecast for US economic output to 1.8% in 2025, down from 2.8% last year, and projected further cooling in 2026.

Top US trading partners Mexico, Canada, and China are all expected to take a hit, it said. China’s growth is projected to slow to 4% this year due to attempts to counter the effects of Washington’s tariffs. The IMF also expects most EU economies to face slower growth as a result.

Trump has imposed a blanket 10% tariff on nearly all imports, alongside tariffs of at least 145% on Chinese goods entering the US. He has also introduced “reciprocal” tariffs on major trading partners, citing alleged unfair trade practices. He later paused the tariffs until July as the administration pursues bilateral trade deals, but has warned that they could rise again if other countries retaliate. The trade tensions and policy uncertainty have rattled global markets.

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Hyundai pulled out of the Russian market in 2022, citing supply problems caused by Ukraine-conflict related sanctions

South Korean auto giant Hyundai has registered at least eight new trademarks with Russia’s intellectual property service, Rospatent, this month, according to TASS.

Hyundai suspended operations in Russia in March 2022 after the introduction of sanctions against Moscow, related to the Ukraine conflict. The manufacturer cited the resulting difficulties with parts supplies as the reason for its decision.

The filings suggest that Hyundai could be preparing for a return to the Russian market. The new trademarks grant the company the right to manufacture and sell a wide array of vehicles in Russia, from passenger cars to buses, tractors, and heavy trucks. The registration also covers key auto components, including tires, shock absorbers, engines, and wheels.

The registered patents reportedly include a range of models, such as Hyundai H-1, N Performance, N Line, Hyundai Axis, Ellecity, Xcient, Hyundai H100, and Hyundai Coupe. The variety of names points to potential activity across both commercial and passenger segments, including performance and luxury sub-brands.

The rights to use the Hyundai trademarks in Russia will remain valid until 2034, according to the filings. A similar move was previously made by another South Korean automaker, Kia, which has filed at least six trademark applications with Rospatent.

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Hyundai and its affiliate Kia, once among the three best-selling car brands in Russia, joined a mass international corporate withdrawal amid Western pressure and Ukraine-related sanctions on Moscow.

Hyundai Motor Group sold 100% of its Russian assets, including its St. Petersburg plant, for a symbolic 10,000 rubles ($123), while securing a buyback option valid for two years. It means the group must make a decision on restarting production at the facility before the end of 2025.

Other major foreign brands have also been positioning themselves for potential reentry and asset reacquisition in Russia.

Last month, LG Electronics confirmed it has resumed operations at its home appliance plant in Moscow, which produced washing machines and refrigerators. Italian household appliance manufacturer Ariston also recently announced its return to Russia after exiting the market in 2022.

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The French luxury brand reportedly plans to sell jewelry in the country

French luxury brand Louis Vuitton has registered up to six new trademarks in Russia, according to media reports citing records kept by the country’s federal intellectual property agency, Rospatent.

The fashion house, renowned for its high-end leather goods, apparel, and accessories, closed its Russian stores in March 2022 as part of a broader withdrawal by Western brands following the escalation of the Ukraine conflict and ensuing sanctions.

According to RIA Novosti, Louis Vuitton filed an application in October, and Rospatent registered a new trademark this month, which is valid until 2034. According to reports, the French firm plans to manufacture and sell jewelry and fashion jewelry in Russia.

Other media reports cite the Rospatent database as showing that the luxury brand has registered six new trademarks, covering the sale of perfumes, jewelry, watches, cosmetics, and shoe care products.

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Louis Vuitton operates as a subsidiary of LVMH Moët Hennessy Louis Vuitton, chaired and majority-owned by Bernard Arnault, the wealthiest person in Europe. Arnault’s estimated net worth is $145.2 billion, making him the fifth richest person in this year’s Forbes’ billionaire list.

The new trademark registrations suggest a strategic effort to maintain brand presence and protect intellectual property rights in the Russian market. Other brands like Hyundai, IKEA, Christian Dior, Gucci, Coca-Cola, and Starbucks have also filed to register or renew trademarks in Russia since their exits.

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Klaus Schwab, the founder of the World Economic Forum, had become a symbol of globalization

Klaus Schwab has stepped down as chairman of the World Economic Forum (WEF), ending more than five decades at the helm of the organization he founded in 1971.

Known for its annual gathering of business and political leaders in the Swiss mountain resort of Davos, the WEF and its former leader became symbols of globalization.

The decision by Schwab, who turned 87 this year, to resign was announced by the WEF on Monday following an extraordinary board meeting a day earlier.

“Following my recent announcement, and as I enter my 88th year, I have decided to step down from the position of Chair and as a member of the Board of Trustees, with immediate effect,” Schwab told the board, according to a WEF news release.

A German-born engineer and economist, Schwab is said to have created the WEF to promote public-private cooperation and global collaboration. Throughout his tenure, Schwab became widely known as a staunch advocate of interconnectedness and interdependence. He argued that international cooperation was essential to solving complex challenges such as climate change, inequality, and technological disruption.

Over the years, he transformed the annual meeting in Davos into one of the world’s most high-profile platforms. The Swiss village gradually became a fixture on the international calendar in January when political leaders, CEOs and celebrities got together to discuss the agenda for the coming year.

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Under Schwab’s leadership, the WEF grew in influence but also faced criticism. The organization has been accused of elitism and of being out of touch with broader public concerns.

Schwab foresaw a backlash against globalization well before Donald Trump’s 2016 election win and the UK’s vote to leave the EU that same year. Both events are widely seen as signs of growing discontent with the global economic system.

In a 1996 opinion piece he co-authored for the International Herald Tribune, Schwab warned, “A mounting backlash against (globalization’s) effects, especially in the industrial democracies, is threatening a very disruptive impact on economic activity and social stability in many countries.”

“The mood in these democracies is one of helplessness and anxiety, which helps explain the rise of a new brand of populist politicians,” he added.

Peter Brabeck-Letmathe, former Nestle CEO and current WEF vice chairman, has been appointed interim chair while a search committee begins the process of selecting a permanent successor, the organization announced.

For more stories on economy & finance visit RT's business section

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The US currency has been under pressure from President Trump’s tariff policy and his standoff with the Federal Reserve chairman

The US dollar tumbled to a three-year low on Monday as market jitters mounted over US President Donald Trump’s tariff war and his escalating disagreement with Federal Reserve Chair Jerome Powell.

The ICE US dollar index – which tracks the greenback against a basket of major currencies – slid more than 1% to 97.923, its lowest since March 2022. The dollar also hit fresh lows against the euro, pound, yen and Swiss franc, and weakened against the ruble, slipping below 80 for the first time since June 2024.

The currency has been under growing pressure since Trump launched what he termed ‘Liberation Day’ tariffs on April 2, targeting global trade partners. Market confidence was further rattled after Trump publicly lashed out at Powell on Thursday over interest rates.

The president slammed the Fed chair, demanding rate cuts and warning that Powell could be removed. “If he wants him out, he’ll be out of there real fast,” Trump said. His comments came after Powell cautioned that the tariffs were “highly likely to generate at least a temporary rise in inflation” and signaled no imminent rate cuts.

White House economic adviser Kevin Hassett later said the administration was studying whether it could legally fire Powell before his term ends.

The clash has alarmed investors, despite Powell saying he has no plans to step down early and stressing that the Fed’s independence was a “matter of law.”

Trump renewed his attacks on Monday, calling Powell “Mr. Too Late, a major loser” in a Truth Social post and warning the economy would slow unless rates were slashed.

US stocks took another hit, with the Dow, Nasdaq and S&P 500 all dropping more than 3%.

Investors are dealing “with a fresh source of macro anxiety: Trump’s threats to Fed independence,” industry expert Adam Crisafulli of Vital Knowledge told CNBC on Monday.

Any attempt to fire Powell would likely trigger a steep sell off in US equity markets, Evercore ISI Vice President Krishna Guha told the outlet.

Trump appointed Powell to the Fed in 2018 and he was reappointed by former President Joe Biden in 2022. His term as chair runs through May 2026.

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The European aerospace giant has suspended plans to deliver flagship zero-emissions commercial aircraft by 2035, according to a report

European aircraft manufacturer Airbus is scaling back its hydrogen-powered jet project after spending nearly $2 billion, the Wall Street Journal has reported, citing sources.

The company announced in 2020 that it aimed to launch a zero-emission, H2-powered aircraft by 2035, calling it a potential breakthrough for aviation. Some industry executives had questioned whether the technology would be ready in time.

People familiar with the matter told the WSJ that Airbus had already spent more than $1.7 billion on the project, but concluded over the past year that technical hurdles and sluggish adoption of hydrogen across the economy would prevent it from meeting its target, according to a report on Sunday.

In early February, Airbus informed staff that the project’s budget would be cut and its timeline delayed, the sources said. A new schedule was not provided.

Later that month, CEO Guillaume Faury – who had initially described the hydrogen push as “a historic moment” – admitted the effort had not led to a commercially viable aircraft. Engineers would return to the drawing board in a second “development loop,” he reportedly said.

Airbus’s efforts to enlist a dozen airlines and more than 200 airports to explore hydrogen integration raised eyebrows, with airline and supplier executives privately doubting the 2035 target. At US rival Boeing – long skeptical of hydrogen – executives voiced concerns over safety and the technology’s readiness.

The EU has pushed aviation to decarbonize under its Green Deal, which aims to make the bloc climate-neutral by 2050. Airbus, partly owned by the French state, was required to channel part of a €15 billion (over $16 billion) Covid-era bailout into green aircraft development.

READ MORE: Fossil fuel era ending – Scholz

According to the WSJ report, the hydrogen program had helped Airbus unlock additional public and private green funding.

The retreat comes as wider enthusiasm for hydrogen fades, with companies like oil major BP and Finnish producer Neste scrapping plans for hydrogen projects. Some major European power companies have been rethinking amid high costs and difficulty transitioning away from fossil fuels, according to leading industry magazine Windpower Monthly.

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The US president’s Golden Dome initiative envisions armed satellites designed to neutralize incoming missiles

Elon Musk’s SpaceX has emerged as a leading contender to develop a significant portion of US President Donald Trump’s proposed ‘Golden Dome’ missile defense shield, sources familiar with the matter told Reuters.

In January, Trump signed an executive order for developing a missile defense system akin to Israel’s ‘Iron Dome’. The president cited a missile attack as “the most catastrophic threat facing the United States.”

The proposed system envisions launching between 400 to over 1,000 tracking satellites, complemented by approximately 200 armed satellites equipped to intercept incoming missiles, according to an article published on Thursday.

Musk’s rocket and satellite company is partnering with software maker Palantir and drone builder Anduril to build key parts of the Golden Dome, sources told the outlet. While SpaceX is expected to focus on the tracking component, the weaponization aspect may involve other contractors.

SpaceX has reportedly introduced an unconventional subscription-based model for its segment of the project, whereby the government would pay for access rather than own the infrastructure outright. This approach has reportedly raised concerns within the Pentagon regarding long-term costs and control over the system.

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Musk’s dual role as a contractor and senior adviser to the president has also prompted scrutiny from members of Congress, who have expressed concerns about potential conflicts of interest. Earlier this month, Democratic Senator Jeanne Shaheen introduced a bill that would prohibit awarding government contracts to companies owned by special government employees, such as Musk.

Trump’s proposal is reminiscent of former President Ronald Reagan’s ‘Strategic Defense Initiative’, dubbed ‘Star Wars,’ which ultimately was never realized. While the ‘Golden Dome’ appears more feasible than SDI, its most ambitious goals, such as intercepting nuclear missiles from other continents, are expected to be highly costly and take years to implement.

Russia has called Trump’s initiative a destabilizing step towards the weaponization of space.

“We see this as yet another confirmation of the US focus on turning space into an arena for armed confrontation, warfare, and the deployment of weapons,” Russian Foreign Ministry spokeswoman Maria Zakharova stated in January.

The Pentagon is in the early stages of the project, with initial capabilities anticipated by 2026 and full deployment projected only after 2030, according to Reuters. The overall cost for Golden Dome could reportedly run into the hundreds of billions of dollars.

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A formal agreement is expected by the end of April, the document says

The Ukrainian government has published a memorandum of intent to finalize a formal agreement which would grant the US access to the country’s natural resources.

The US and Ukraine have been trying to thrash out the so-called ‘minerals deal’ since February. The Trump administration views the agreement as a way to recoup money Washington has spent on supporting Kiev in its conflict with Moscow. Ukraine insists that the US assistance was provided unconditionally.

Yulia Sviridenko, Ukraine’s first deputy prime minister and minister of the economy, revealed that the memorandum was signed on Thursday.

The document, which was made public the following day, states that the “United States of America and Ukraine intend to establish a reconstruction investment fund,” emphasizing that Washington “has provided significant financial and material support” to Kiev since 2022.

Both the US and Ukrainian governments reaffirmed their commitment to working “expeditiously towards the completion of the necessary documents.”

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According to the memorandum, Ukrainian Prime Minister Denis Shmigal will visit Washington next week, where he is expected to meet with US Treasury Secretary Scott Bessent and conclude the “technical discussion.”

The document says that negotiations are expected to be completed by April 26, with the agreement to be signed shortly thereafter.

Commenting on the signing of the memorandum, Sviridenko said on Friday that “there is a lot to do, but the current pace and significant progress give reason to expect that the document will be very beneficial for both countries.”

Speaking during a press conference at the White House the previous day, Trump claimed that “we have a minerals deal which I guess it’s going to be signed on Thursday, next Thursday, soon.”

A previous version of the agreement was supposed to be signed in early March, but was abruptly withdrawn after Ukrainian leader Vladimir Zelensky engaged in a heated altercation with Trump and US Vice President J.D. Vance during a White House meeting.

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Shortly thereafter, President Trump temporarily froze all military aid and intelligence sharing with Kiev, which prompted Zelensky to signal his willingness to resume negotiations on the minerals agreement.

According to Reuters, the latest version of the deal is significantly harsher than earlier iterations.

Last month, the US president warned the Ukrainian leader against “trying to back out of the rare earth deal.”

“If he does that, he’s got some problems – big, big problems,” Trump added.

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The tech giant has violated American antitrust laws, according to a US district court ruling

Tech giant Google has violated US antitrust laws by illegally monopolizing the online advertising market, a federal judge has ruled, in a case that could force the company to sell parts of its ad business.

The decision marks the second major courtroom defeat for Google in less than a year, as US regulators ramp up efforts to rein in Big Tech’s dominance.

US District Judge Leonie Brinkema issued the ruling on Thursday in Virginia, siding with the Justice Department in a case targeting the $31 billion segment of Google’s ad business that connects website publishers with advertisers.

Brinkema found that by tying its ad server and publisher ad exchange, Google had “establish[ed] and protect[ed] its monopoly power in these two markets” for over a decade. In her 115-page decision, she wrote that the company’s conduct had deprived “rivals of the ability to compete.”

Google said it would appeal the decision, arguing the government is trying to dictate how it does business and that its view of the market is contrived and disconnected from reality. The company maintained that its tools help publishers and advertisers generate revenue.

“We won half of this case and we will appeal the other half,” said Lee-Anne Mulholland, Google’s vice president of regulatory affairs, noting the court has found its advertiser tools and acquisitions do not harm competition.

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The ruling follows another antitrust loss for Google last year, when a judge found it held a monopoly in online search. It also comes amid a broader crackdown on Silicon Valley giants that began during Donald Trump’s first term as president.

This week, fellow tech giant Meta went on trial over federal claims it abused its market power by buying up potential rivals as part of a “buy-or-bury strategy.”

Google could now be forced to sell assets or overhaul parts of its business, experts say. In a separate case, a Washington judge is set to consider the DOJ’s request to make the company divest its Chrome browser and curb its dominance in search.

This is “a big win in the fight to break up Big Tech,” US Senator Elizabeth Warren said on Thursday, calling the decision “the result of years of work to rein in tech companies’ abuses.”

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Beijing’s retaliatory tariffs have made American gas financially unviable, the outlet has said

China has “completely” stopped imports of US liquefied natural gas (LNG) for over ten weeks, extending the trade war between Beijing and Washington into energy cooperation, the Financial Times reported on Friday, citing shipping data.

Amid escalating trade tensions, China has imposed tariffs on US hydrocarbons – up to 99% – effectively pricing them out of the Chinese market. The standoff with China comes amid a wider US campaign targeting a number of countries. While most tariffs were paused for 90 days, China was excluded and faces total tariffs of up to 145%. In retaliation, Beijing imposed 125% tariffs on US goods and curbed exports of key high-tech minerals.

Since February, when a 69,000-ton LNG tanker from Corpus Christi, Texas arrived in Fujian province, China hasn’t received any LNG, signaling a sharp breakdown in the energy trade, the outlet said, citing Chinese-based energy traders.

A second tanker was redirected to Bangladesh after it failed to arrive before China imposed a 15% tariff on US LNG on February 10. The tariff has since been increased to 49%, making US LNG too expensive for Chinese buyers for the foreseeable future.

“There will be long-term consequences,” the FT quoted Anne-Sophie Corbeau, a gas specialist at Columbia University’s Center on Global Energy Policy, as saying. “I do not think Chinese LNG importers will ever contract any new US LNG.”

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Chinese firms such as PetroChina and Sinopec have signed 13 long-term LNG contracts with US terminals, some lasting until 2049, according to Kpler. The deals were crucial for launching major US LNG projects. Developers, however, are now reportedly seeking to renegotiate terms due to inflation and tariff-related costs.

Beijing has also reportedly slashed purchases of American crude by 90% amid the tariff war.

The standoff with the US could deepen China’s already booming energy ties with Russia, casting doubt on the massive expansion of multibillion-dollar LNG terminals in the US and Mexico, the outlet said.

Earlier this week, China’s ambassador to Russia said Beijing is set to ramp up its imports of Russian LNG.

“I know for sure that there are a lot of buyers. So many buyers are asking the embassy to help establish contacts with Russian suppliers, I think there will definitely be more [imports],” Zhang Hanhui told reporters. He added that the two countries discussed the proposed Power of Siberia-2 gas pipeline from Russia to China. The route, however, has not yet been finalized.

Russia has become China’s third-largest LNG supplier, after Australia and Qatar. Last year, China led as the top buyer of Russian LNG in Asia, importing 7 million tons.

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“Uncertainty is costly,” organization chief Kristalina Georgieva has said, citing stalled investment, slower growth, and rising inflation amid trade wars

The global economy is expected to grow more slowly this year and face higher inflation, the International Monetary Fund (IMF) has said, citing global trade disruptions and rising “protectionism.”

Sweeping tariffs imposed by US President Donald Trump, which he says are focused on prioritizing domestic manufacturing and renegotiating trade deals in favor of the US, have caused a sharp rift with trade partners, including the European Union and China.

Speaking on Thursday, IMF Managing Director Kristalina Georgieva called for urgent reforms and renewed global cooperation as she previewed the fund’s upcoming World Economic Outlook report.

Financial volatility is rising sharply and “costly” trade policy uncertainty “is literally off the charts,” Georgieva said, referencing IMF data that showed a steep rise in global unpredictability. She added that the US effective tariff rate has surged to levels “last seen several lifetimes ago.”

While she did not mention Trump by name, the rise in tariffs stems from his administration’s sweeping trade measures, including a blanket 10% tariff on all imports and much higher rates on Chinese goods, with some products facing tariffs as high as 145%. In response, China has raised levies on all US imports from 84% to 125%, marking its most significant retaliatory move to date.

Georgieva’s remarks echoed concerns voiced by other top economic leaders this week, including the heads of the Federal Reserve and the World Bank, who have warned about the damaging effects of Trump’s trade policies.

On Thursday, the European Central Bank cut interest rates, citing “deteriorating growth prospects” due to escalating trade tensions.

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Earlier this week, French Prime Minister Francois Bayrou said Trump had launched a global trade war “without warning,” criticizing him for striking both rivals and allies alike with sweeping tariffs and for dismantling decades of cooperation.

Other top EU leaders have also warned the tariffs harm global trade and threaten economic stability. European Commission President Ursula von der Leyen called the move a “major blow,” while Spanish Prime Minister Pedro Sanchez condemned the tariffs as “unintelligent,” and Polish Prime Minister Donald Tusk labeled them “unnecessary and stupid.”

On Friday, Trump reiterated his stance during a meeting with Italian Prime Minister Giorgia Meloni, stating he is in “no rush” to finalize trade agreements, as he believes tariffs are generating significant revenue for the US.

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The two countries are expanding their partnership with a focus on technology, mineral extraction, and other areas of mutual interest

Russia and Qatar have signed an agreement to establish a new $2 billion investment platform aimed at strengthening economic ties and boosting bilateral cooperation.

The deal was signed on Thursday following talks in Moscow between Russian President Vladimir Putin and Qatari Emir Sheikh Tamim bin Hamad Al Thani, who was in Russia on a state visit.

Under the agreement, the countries’ sovereign wealth funds will expand their partnership, focusing on joint investments in technology, healthcare, mineral extraction, and other areas of mutual interest. The Russian Direct Investment Fund (RDIF) and Qatar Investment Authority (QIA) will each contribute $1 billion to the new platform, according to a press release.

The RDIF and QIA launched their first joint investment venture in 2014, with $4 billion in capital. That platform has since backed projects across Russia in areas such as financial and banking services, artificial intelligence, metals, logistics, transport and other sectors.

The new partnership opens up “significant potential,” said RDIF CEO and Putin’s investment envoy, Kirill Dmitriev, creating opportunities for Russian companies in Middle Eastern markets and supporting Qatari businesses entering the Russian market.

“Together with Qatar, we’ve already invested in more than 15 projects worth over $1 billion,” Dmitriev told reporters.

Qatari businessmen are keen to invest in Russia as a leading investment destination with lucrative opportunities, chairman of the Qatar Chamber of Commerce and Industry, Sheikh Khalifa bin Jassim bin Mohammed Al Thani, told Qatar News Agency on Thursday.

READ MORE: Putin and Qatari emir discuss crises in Gaza and Syria

In addition to the investment deal, the sides have also signed agreements and memoranda of understanding in finance, healthcare and sports.

Putin and Al Thani discussed prospects for diversifying and increasing the volume of bilateral trade among other issues.

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Eight financial institutions have excluded weapons makers from funds marketed as socially responsible

A group of German banks has opposed the inclusion of arms manufacturers in investment portfolios specifically marketed as ethically sustainable. They cited their commitment to peace as the reason.

Following the escalation of the Ukraine conflict in February 2022, Germany and other EU nations have considerably ramped up defense spending, with weapons makers such as Rheinmetall raking in record profits from the growing orders.

In a public document outlining their stance released earlier this month, GLS-Bank, KD-Bank, BiB Essen, Bank fuer Kirche und Caritas, DKM – Partner fuer Kirche und Caritas, Evangelische Bank, Steyler Ethik Bank, and PAX Bank stated that while they agree that “investments in armaments are necessary, [they] are not ethically sustainable.”

Despite the recent “geopolitical developments and growing threats,” they said, “people who consciously choose to invest in ethically sustainable investments should be able to be sure that their values are not being violated.”

“That is why we are positioning ourselves against the unrestricted inclusion of arms companies from all over the world in sustainable financial products,” the financial institutions, which describe themselves as either ‘Christian’ or ‘ethical’, argued.

They explained that they felt compelled to outline their position after the German banking industry relaxed constraints on the inclusion of arms manufacturers in sustainable investments, allowing entities whose core business is defense and weapons production.

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In their statement, the eight banks said they have routinely excluded from their portfolios companies that generate an average of more than 3% to 5% of their revenue from the development, production, and sale of weapons and military equipment.

“We will continue to adhere to this policy in the future because we do not want to dilute sustainability in our financial products,” they stated.

The banks argued that the “use of weapons and armaments does not make a positive contribution to achieving the Sustainable Development Goals, but rather destroys lives, civil society, the environment, and infrastructure,” and stressed that investments in these companies “enable armed conflicts around the world.”

According to the document, arms manufacturers can readily access non-sustainable, conventional financial products, so they are not at any serious disadvantage.

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Technology can improve government efficiency, according to Maksut Shadaev

Russia could potentially replace at least half of its civil servants with artificial intelligence (AI), Digital Development Minister Maksut Shadaev has said.

During a panel discussion at the Data Fusion forum on Thursday, Shadaev highlighted the capabilities of AI in transforming public service jobs.

“I believe AI can certainly replace half of public servants, possibly even more,” he stated. He noted, however, that certain professions, such as doctors and teachers, cannot be replaced.

Russia aspires to be a global trailblazer in AI technology. In December, President Vladimir Putin said the country should be “a leader not only in creation, but also the scale of implementation, introduction of artificial intelligence in every single sphere of our lives.” He praised the effective use of a domestically developed generative model for analyzing millions of questions submitted during his recent annual Q&A session.

In the panel discussion, Shadaev elaborated on the ministry’s plans regarding citizen data management, enhancing public access to government services, and enabling businesses to verify CVs against official data while safeguarding personal privacy.

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Government reports indicate that Russia employs over 3 million public servants across governance, security, and social services. The Finance Ministry estimated in 2019 that there are over 160 public servants for every 10,000 citizens.

In October, Putin instructed the federal government to assess staffing needs within various agencies, suggesting that optimization could lead to at least a 10% reduction in personnel.

Finance Minister Anton Siluanov stated last year that his department supports adjusting tax-funded labor to achieve greater efficiency, allowing for fewer workers to be compensated with higher wages.

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Germany’s economy alone could slump by 1.6% annually by 2028, according to IW

A trade war with the US could cost the EU up to €1.1 trillion ($1.25 trillion) over the next four years if Donald Trump proceeds with proposed tariffs, according to a study by the German Economic Institute (IW).

Earlier this month, the Trump administration announced a sweeping 20% tariff on all EU goods and a 25% tariff on all car imports in a bid to eliminate what Washington sees as a large trade deficit with the bloc. Brussels was set to introduce 25% retaliatory tariffs on US imports before Trump announced a 90-day pause on most tariffs to allow for negotiations.

If an agreement is not reached and US tariffs are imposed, the EU’s cumulative costs are estimated to range between €780 billion ($886.5 billion) and €1.1 trillion ($1.25 trillion) from 2025 to 2028, depending on the scenario, the study released on Thursday said.

The institute also projects that Germany’s GDP could slump by 1.2% annually during the same period under tariffs. If trading partners respond with similar measures, the costs for Berlin could rise to 1.6%, according to the report.

Germany’s economy, already facing challenges, is expected to grow by only 0.1% in 2025 after two consecutive years of contraction. The IW forecasts a total economic output loss of €180 billion (around $205 billion) by 2028 for Germany, primarily due to export losses and declining investments.

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The US was Germany’s largest trading partner in 2024, with bilateral trade totaling €253 billion ($287.5 billion). A trade conflict could significantly impact key sectors, including automotive and pharmaceuticals, experts have warned.

The IW also pointed out that although the tariffs have been suspended for 90 days, uncertainty remains high, hitting global investment planning.

European Commission President Ursula von der Leyen earlier proposed a “zero-for-zero” tariff agreement to eliminate duties on industrial goods between the EU and the US. However, Trump rejected the offer, stating it was insufficient and demanded that the EU commit to purchasing $350 billion worth of American energy to receive tariff relief. Trump has criticized the EU’s trade practices, asserting that the bloc is “very bad to us” and highlighting the US trade deficit as justification for his stance.

Officials from Washington and Brussels met for trade talks earlier this week, but made little headway in resolving their differences. US officials signaled that most tariffs on EU goods are likely to remain in place, according to Bloomberg.

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The measure is part of Kiev’s push to join the EU

Ukraine will begin blending all motor fuel with bioethanol starting next month as part of the country’s EU integration plans, the news outlet Economic Pravda reported on Wednesday.

Legislation passed last year in Ukraine mandates a shift to a 5% bioethanol mix in gasoline starting May 1. However, the looming deadline has raised questions about how the new law will be implemented given the lack of quality control in the country, according to a government source cited by the outlet.

Bioethanol, an alcohol made from plants such as sugar cane or maize, boosts fuel combustion efficiency and cuts greenhouse gas emissions. Until recently, biofuel hadn’t been used in Ukraine’s gasoline blends. That changed in June 2024, when the country’s parliament passed a law mandating its use to align with EU sustainability standards. Nearly all EU countries require gasoline to contain at least 5% bioethanol – known as E5 – with many already moving toward E10, a 10% blend.

According to the report, the new mandate will apply to all automotive fuel sold at wholesale and retail locations in the country, with the exception of high-octane 98 gasoline and fuel used by the Ukrainian military. However, the news outlet notes that the country currently does not produce E5-grade fuel and will rely heavily on imports.

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“Some 90% of the imports will be already mixed. In other words, everyone will try their best to import already mixed gasoline from abroad,” Sergey Kuyun, head of the A-95 consulting group, told the outlet.

Gas station owners have expressed concern over the implementation of the new law.

“It won’t be controlled properly. Who will do it and how? There are no methods, no specialists, and extra funds are needed to carry out the checks,” the head of a major fuel network told the outlet.

Representatives from Ukraine’s State Environmental Inspectorate and the Energy Efficiency Agency said there would be no fines for non-compliance during the first few months, as enforcement legislation is not yet finalized.

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“Consumers will most likely be forced to do their own quality control. If they buy low-quality fuel at a certain gas station, they will not return there. In principle, that’s how it works even now, because in fact there is no quality control in Ukraine,” a government source told the outlet.

Experts warned that the move could drive up fuel prices in the country, as most European producers have switched to E10 and would need to modify their facilities to supply Ukraine with E5.

Ukraine received its first two batches of E5 containing 4.8% bioethanol from Lithuania’s Orlen Lietuva and Romania’s OMV Petrom over the weekend, according to media reports. Additional shipments from Poland’s Orlen refinery and Germany’s PCK Schwedt are expected to begin in mid-April.

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The Russian currency has posted strong gains against the US dollar and has outshone gold, data shows

The Russian ruble has emerged as the world’s top-performing currency this year, outpacing even gold, Bloomberg reported on Tuesday, citing calculations based on over-the-counter market data.

The ruble has surged 38% against the US dollar, marking the strongest gains of any currency so far this year. It has also outperformed gold – long seen as a safe-haven asset – which has risen 23% to record highs since January.

Analysts cited a combination of geopolitical developments and monetary policy decisions by the Bank of Russia as key drivers of the ruble’s performance.

“Unlike many emerging-market currencies, the ruble is not facing pressure from capital outflow, caused by global investors’ retreat from riskier assets,” Sofya Donets, an economist at T-Investments, told Bloomberg, noting that capital controls “have largely shielded Russia from this.”

Other economists pointed to high borrowing costs. In October, the Bank of Russia hiked its benchmark interest rate to a record 21% to curb inflation and has held it steady since. Experts said the move dampened demand for imports, and by extension, foreign currency. Meanwhile, regulations requiring exporters to convert a portion of their foreign earnings into rubles, a measure introduced in response to Western sanctions, have further strengthened the currency, they noted.

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Analysts also cited improved US-Russia relations, spurred by joint efforts to resolve the Ukraine conflict, as boosting foreign investor interest in Russian markets and the ruble. Iskander Lutsko, the head of research at Istar Capital, said international investors are increasingly turning to countries that maintain ties with Moscow to access high-yielding ruble assets. He also predicted that the conditions currently boosting the ruble are likely to persist for some time.

“There are no clear drivers for the ruble’s weakening at this stage with a rate cut off the table for the upcoming quarter,” Lutsko said.

The ruble rally comes amid a weakening of the US dollar, which hit a six-month low on Monday following tariff hikes announced by Washington. Earlier this month, US President Donald Trump introduced “reciprocal” tariffs on nearly 90 trade partners, citing unfair trade practices.

While Trump paused most of the new tariffs for 90 days, except on China, global financial markets have taken a beating as a result. Economists say the US president’s actions have shaken investor faith in US assets and cast doubt on the dollar and Treasuries as reliable safe havens. The ruble, however, has been relatively immune to the tariff war, as Russia has not been targeted.

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The warning comes amid an escalating trade war between Washington and Beijing

Chinese imports to the US could face tariffs as high as 245%, according to a White House fact sheet released on Tuesday. The warning comes amid a growing trade rift between the world’s two largest economies.

The administration of US President Donald Trump has cited Beijing’s retaliation to previous levies as the reason for the latest potential hike.

“China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions,” the fact sheet reads. However, it’s not clear from the document when the increase would come into force.

Washington has imposed several major tariff rises on Beijing in the past two months, increasing the duties from an initial 20%.

Beijing’s retaliation has included a hike to 125% on all American imports, a suspension of global shipments of rare-earth metals and magnets used in tech and military industries, and an order to Chinese airlines to stop accepting Boeing jets and parts.

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The standoff with China comes amid a broader US tariff campaign targeting dozens of countries. According to Trump, the measures are part of an effort to balance the US trade deficit with its trading partners.

Following turmoil on the financial markets, the US administration paused higher tariffs for most countries to allow trade negotiations, except for China.

White House press secretary Karoline Leavitt said on Tuesday that Trump was open to making a trade deal with the Asian nation, but that Beijing should make the first move.

READ MORE: Tariffs won’t fix US economic problems – Nigerian journalist

China has slammed US tariffs as “a weapon to exert extreme pressure and pursue private interests” and an act of “unilateral economic bullying.” It has also vowed to continue to “take resolute measures to safeguard its legitimate interests.”

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The US president insists his trade policy could generate billions in revenue

US President Donald Trump has suggested that revenue from his so-called “Liberation Day” tariffs could potentially replace the federal income tax.

This month, Trump announced “reciprocal” tariffs on nearly 90 countries, citing what he described as unfair trade practices. Following a sharp global market decline, he declared a 90-day pause on the duties, reducing them to a 10% baseline. China was one of the few exceptions, with tariffs on its goods raised even further.

Speaking to Fox News’ Rachel Campos-Duffy on Tuesday, Trump was asked whether his tariffs could eventually replace the income tax.

He praised the question, noting that the TV host was the only one who had ever posed it to him – despite frequently engaging with “top financial minds” who had never brought it up.

“There is a chance that the money from tariffs could be so great that it would replace – you know, in the old days, about 1870 to 1913, the tariffs were the only form of money,” Trump said, referring to the Gilded Age – a period of rapid industrial growth and rising national wealth, though marked by stark income inequality and widespread poverty.

“That’s when our nation was relatively the richest. We were the richest,” he added.

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Trump, who has dubbed himself “a tariff man,” argues that his trade policies could raise over $1 trillion in the next year or so – helping to reduce the national debt and potentially offset or replace income taxes. He maintains that tariffs are strengthening the US economy, bringing “billions of dollars a day” into federal coffers.

Economists, however, are skeptical that tariffs could generate revenue on the scale Trump claims, warning that higher import prices could reduce consumer spending and dampen overall demand.

According to the Congressional Research Service, over the past 70 years, tariffs have accounted for no more than 2% of total federal revenue annually. In 2024, US tariff collections on imports represented just 1.7% of the more than $4.9 trillion in total federal revenue.

Financial analysts at ING said Tuesday that broad tariffs on trading partners – particularly China – may yield long-term benefits for the US economy and American workers. However, they cautioned that the transition could be “very challenging and likely economically damaging” in the short term.

If trade deals are reached and tariffs are scaled back, ING noted, the government could lose fiscal room for broader tax cuts.

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The tech giant is facing an antitrust trial that could force it to sell Instagram and WhatsApp

The US competition watchdog is seeking to break up social media giant Meta over allegations it unfairly dominated the market by acquiring Instagram and WhatsApp, multiple media outlets have reported.

The reports come as a historic antitrust trial, brought by the US Federal Trade Commission (FTC), opened in a Washington federal court on Monday. The FTC has accused Meta of abusing its market power by buying up potential rivals in a “buy-or-bury strategy.”

Meta, which also owns Facebook, purchased the photo-sharing app in 2012 and the messaging service in 2014. Although the FTC initially approved both deals, it now argues that Meta overpaid when it acquired Instagram for $1 billion and WhatsApp for $19 billion in a defensive move to stifle competition.

If the judge rules in favor of the government, Meta could be forced to break itself up by selling Instagram and WhatsApp. Other tech giants may also come under increased scrutiny as pressure on Big Tech intensifies, industry analysts believe.

In opening statements, FTC attorney Daniel Matheson said Meta was generating enormous profits even as consumer satisfaction declined. The watchdog cited emails dating back to 2011 and 2012 where Meta’s (then Facebook’s) CEO Mark Zuckerberg suggested the company could buy Instagram, which he described as “growing quickly.”

Matheson called a 2012 message in which Zuckerberg discussed the importance of “neutralizing” Instagram “a smoking gun.”

Zuckerberg, who took the witness stand on Monday, said the emails reflected “relatively early” conversations about the acquisition. He argued that Meta had improved Instagram over the years.

On Tuesday, during his second day of testifying, Zuckerberg admitted the company bought Instagram because it had a “better” camera than the one Meta was trying to develop.

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Meta’s lawyers rejected the FTC’s allegations, arguing the company faces stiff competition from platforms such as Chinese-owned TikTok.

The case is part of a broader crackdown on Big Tech that began during President Donald Trump’s first term. The original suit, filed in 2020, was dismissed six months later.

Since Trump’s return to the White House, Meta has made repeated overtures to his administration, including contributing to the president’s inauguration fund and easing its content moderation policies. In January, the company agreed to pay Trump $25 million to settle a lawsuit over the suspension of his accounts following the 2021 Capitol riot. Zuckerberg has also visited the White House in recent weeks.

The case could affect Meta’s 3.5 billion users, who rely on Facebook, Instagram or WhatsApp daily. However, with appeals likely from both sides, the lawsuit could drag on for years, experts say.

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Officials in Brussels are reportedly considering invoking a force majeure clause to avoid paying compensation to Moscow

The EU is exploring legal loopholes to allow companies to avoid penalties for ditching long-term gas contracts with Russia, the Financial Times (FT) reported on Tuesday, citing sources. The efforts are reportedly part of the bloc’s push to phase out Russian fossil fuels by 2027.

While Russian gas is not included in EU sanctions targeting Moscow, the bloc committed to cutting its reliance on Russian energy after the Ukraine conflict escalated in 2022. As a result, Russia’s share of EU pipeline gas imports dropped from over 40% in 2021 to about 11% in 2024.

Russian LNG shipments to the bloc have surged over 60% in the past three years, however. Russia’s Yamal LNG plant maintains contracts with Shell and Naturgy amongst others. Combined pipeline and LNG supplies made Russia the EU’s second-largest gas source in 2024, after Norway.

Sources told the FT that European Commission lawyers are assessing whether a force majeure clause – typically invoked during extraordinary events outside the control of contracting parties – could justify terminating binding gas supply agreements. The clause could reportedly be applied due to the Ukraine conflict, allowing firms walk away from contracts without triggering compensation claims.

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“If the whole idea is not paying Russia, then [paying compensation] would undermine the whole purpose,” one EU official told the outlet.

EU officials have declined to comment on the FT report.

The European Commission planned to release a roadmap on how to quit Russian fossil fuels last month, but the document has reportedly been delayed, amid resistance from Hungary and Slovakia, both of which rely on Russian pipeline gas. Budapest has vowed to veto sanctions that jeopardize its energy security.

Commission President Ursula von der Leyen nevertheless told the FT the roadmap should be published within a month.

Several EU ministers have argued that existing legal tools are not strong enough to compel firms to abandon Russian gas, especially given high costs and supply risks. Sources also told the outlet that invoking force majeure may not hold up in court, as most contracts differ and are confidential.

READ MORE: US wants control of key gas pipeline in Ukraine — Reuters

Energy analysts say that ending reliance on Russian gas would likely increase EU purchases from countries such as the US, the bloc’s third-largest supplier as of last year. US President Donald Trump earlier signaled that expanding energy exports to Europe would be a key focus in his talks with the bloc over his recent import tariff hike.

Russia has repeatedly said it remains a reliable energy supplier and has denounced Western sanctions and trade restrictions targeting its exports as illegal under international law.

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The country’s oil, gas, and coal resources will last for decades to come, according to government data

Russia holds several decades’ worth of oil reserves, enough natural gas to last a century, and coal sufficient for 500 years at current production levels, according to a newly released government report.

‘Russia’s Energy Strategy through 2050’ – a document outlining the country’s vision for the energy sector and response to global challenges – was approved by Prime Minister Mikhail Mishustin on Monday.

With the world’s largest reserves, Russia is well positioned to supply traditional energy resources to global markets and preserve its role as a major producer, the report states.

The country holds more than 31 billion tons of proven oil reserves, which is enough for over 65 years of production at current rates. It ranks third globally in oil reserves and second in output, accounting for 10% of the world’s supply, the report adds. Russia also has significant untapped resources to sustain oil and condensate production at no less than 540 million tons a year and build spare capacity to respond flexibly to shifts in global demand.

In natural gas, Russia leads the world with 63.4 trillion cubic meters of reserves and is the second-largest producer, contributing 16% of global output. Current reserves would cover 100 years of production, the report noted.

The country’s coal resources are estimated at 272.7 billion tons, sufficient to last more than 500 years. Russia ranks fifth in global coal reserves and sixth in production.

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Russia is also a major player in uranium, holding 705,000 tons – the fourth-largest reserves worldwide – and accounting for 5% of global output. The reserves ensure the stable operation of the country’s nuclear energy sector.

The report also said that rising demand for lithium, nickel, rare earths, aluminum, and other metals, will open up “new opportunities” for the efficient development of Russia’s mineral resource base.

The energy strategy outlined steps to fast-track infrastructure projects and create conditions for redirecting oil, gas, and refined product exports to new “friendly” markets. Plans include expanding transshipment capacity at Arctic and Far Eastern ports via the Northern Sea Route.

The document also looked at stress scenarios, including a faster global shift to renewables by 2050, but said the risk was low as it would require a 20% drop in energy use and triple the investment in alternatives, placing a heavy burden on consumers and the world economy.

The report emphasized that fossil fuels are expected to remain the backbone of global energy supply at least through 2050. Liquefied natural gas is projected to play an increasingly important role in global trade due to its flexible logistics, intensifying competition in the market.

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The suspension concerns rare earth metals and magnets, according to the outlet

China has halted exports of several critical rare earth metals and magnets amid a deepening trade war with the US, the New York Times has reported. The move follows US President Donald Trump’s decision to drastically raise tariffs on imports from China and other countries earlier this month.

On April 4, China’s Ministry of Commerce and the General Administration of Customs announced new restrictions on the export of six heavy rare earth metals and special magnets made with them, which are almost exclusively mined in the country. The materials, essential for electric vehicles, drones, missiles and computer chips, now require special export licenses.

According to the NYT, the license system has not yet been implemented, and enforcement currently varies by port. Some customs offices have allowed exports with minimal traces of heavy rare earths, while others require testing to confirm compliance. Industry executives told the paper that shipments remain suspended as of the weekend.

Michael Silver, the CEO of American Elements, told the NYT that his company was recently informed that licenses could take 45 days to process, adding that his firm has been forced to build up inventory in advance in order to meet current contracts.

The chairman of the critical minerals advisory committee for the Office of the US Trade Representative, Daniel Pickard, also told the paper the export controls could “have severe effects in the US” and warned that prolonged disruption could damage China’s reputation as a supplier.

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The NYT noted that the restrictions also prohibit Chinese firms from working with a growing list of US companies, particularly defense contractors. MP Materials CEO James Litinsky told the outlet that the move poses a serious risk to the US military supply chain.

Earlier this month, Trump announced a sweeping escalation in tariffs, raising the total duty on Chinese imports to 145%. The White House said the measures were aimed at promoting domestic manufacturing and addressing longstanding trade imbalances. While most elevated tariffs were paused for 90 days for countries that agreed to talks, China was excluded from the reprieve.

In response, Beijing imposed reciprocal tariffs of 125% on American goods on Saturday. China’s Ministry of Commerce accused Washington of using tariffs as a form of coercion and warned that continued escalation would be economically meaningless. Chinese officials said no further retaliatory hikes were planned but pledged to “fight to the end” and filed a formal complaint with the World Trade Organization.

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Ray Dalio warns that US President Trump’s tariff strategy could trigger something much “worse than a recession”

Billionaire investor Ray Dalio has warned that the United States is facing economic risks far greater than a typical recession, arguing that US President Donald Trump’s aggressive tariff policies and ballooning debt could trigger a breakdown of the global financial system.

Speaking on NBC’s Meet the Press on Sunday, the founder of Bridgewater Associates said the world is at a critical juncture, marked by profound changes in the political, economic, and geopolitical order – factors which he says have historically led to severe crises.

“I think that right now we are at a decision-making point and very close to a recession,” Dalio said. “And I’m worried about something worse than a recession if this isn’t handled well.”

Dalio explained that the US economy is confronting several overlapping challenges: rising debt, internal political divisions, growing geopolitical tensions, and shifts in global power.

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“Such times are very much like the 1930s,” he warned. “If you take tariffs, if you take debt, if you take the rising power challenging the existing power – those changes in the orders, the systems, are very, very disruptive.”

Asked about the worst-case scenario, Dalio pointed to a potential breakdown of the dollar’s role as a store of wealth, combined with internal conflict beyond the norms of democratic politics and escalating international tensions – potentially even military conflict.

“That could be like the breakdown of the monetary system in ‘71. It could be like 2008. It’s going to be very severe,” Dalio said. “I think it could be more severe than those if these other matters simultaneously occur.”

READ MORE: Xi warns US will isolate itself

While acknowledging that tariffs could serve as a useful tool to bring back manufacturing and generate revenue, Dalio cautioned that the method of implementation matters deeply.

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“How that’s done – whether in a practical and stable way, with quality negotiations – or whether that’s done in a chaotic and disruptive way that produces great conflict, makes all the difference in the world,” he said.

Describing Trump’s recent tariff moves as “very disruptive,” Dalio said the real test will come after the current 90-day negotiation period ends. “What was put there is like throwing rocks into the production system,” he said, warning of “enormous” impacts on global efficiency and costs.

Goldman Sachs raised the odds of a US recession within the next 12 months to 45% last week, following Trump’s April 2 announcement of a minimum 10% tariff on all imports – but before he placed a three-month hold on further “reciprocal” duties of 11% to 50% targeting dozens of nations. China, however, was still hit with a 145% import duty – and retaliated with a 125% levy of its own.

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Adam Schiff has called for an investigation into who profited from the president’s tariff pause

US Democratic Senator Adam Schiff has called on Congress to investigate President Donald Trump for possible insider trading and market manipulation following his abrupt trade policy U-turn. Global stocks soared after the president paused the imposition of tariffs on a multitude of countries this week.

On Wednesday, Trump announced a 90-day pause on reciprocal tariffs against US trade partners, lowering duties to a flat 10% rate. The only exception was China, which he hit with an increase to 125% following Beijing’s tariff hike on US goods to 84%. Immediately after the announcement, US stock markets posted near-record gains after a week-long slump.

Mere hours before the announcement, Trump posted on his Truth Social platform: “BE COOL! Everything is going to work out well,” followed by, “THIS IS A GREAT TIME TO BUY!!! DJT,” referencing his media company’s stock ticker. The timing of his posts, the pause and the resulting market rally sparked speculation about market manipulation online, which became even more heated after White House aide Margo Martin posted a video of Trump praising financier Charles Schwab for making billions during the rally.

Pretty despicable to talk about how much money his friends made because he tanked the market for them. No shame.

— Tom Stone (@Tommystone88) April 9, 2025

“Trump removed many of the tariffs he had imposed in this on-again, off-again… kind of policy. This has just wreaked havoc on the markets,” Schiff said in his video address posted on X. “But there is another profound danger as well, and that is insider trading within the White House.”

“The question is, who knew what the president was going to do? And did people around the president trade stock knowing the incredible gyration the market was about to go through?” he added. Schiff went on to accuse Trump of corruption, citing his family’s crypto trading and the “conflicted self-dealing” of ally, billionaire Elon Musk.

Is Donald Trump's inner circle illegally profiting off of these huge swings in the stock market by insider trading?

Congress must find out. pic.twitter.com/ZZGX99PtFE

— Adam Schiff (@SenAdamSchiff) April 9, 2025

“We in Congress need to do more than demand answers. We need to do the oversight necessary to get those answers… We’re going to get to the bottom of this,” he pledged.

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White House press secretary Karoline Leavitt earlier claimed that the tariff reversal was part of Trump’s broader negotiation strategy, calling it his “art of the deal.” The White House has so far made no comment on Schiff’s call for a congressional probe.

Other Democrats also voiced concerns. “The President of the United States is literally engaging in the world’s biggest market manipulation scheme,” the House Democratic Financial Services Committee wrote on X, in response to Trump’s “Time to buy” post.

Rep. Steven Horsford of Nevada openly questioned whether the pause amounted to market manipulation during a House hearing with Trump’s trade representative, Jamieson Greer on Wednesday.

Rep. Alexandria Ocasio-Cortez called for all lawmakers to disclose recent stock purchases.

“I’ve been hearing some interesting chatter on the floor,” she wrote on X. “Disclosure deadline is May 15th. We’re about to learn a few things. It’s time to ban insider trading in Congress.”

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Larry Summers says Trump’s tariff chaos risks a self-inflicted financial crisis

Former US Treasury Secretary Lawrence H. Summers has warned that President Donald Trump’s escalating tariff war is pushing the United States toward a financial crisis, comparing recent market turmoil to conditions typically seen in unstable emerging economies.

Speaking on Wednesday, before Trump announced a surprise 90-day pause on the latest round of tariff hikes, Summers said the volatile situation unfolding in American and global markets was “wholly induced by US government tariff policy.”

“Long-term interest rates are gapping up, even as the stock market moves sharply downwards,” Summers wrote in a series of posts on X. “This highly unusual pattern suggests a generalized aversion to US assets in global financial markets. We are being treated by global financial markets like a problematic emerging market.”

READ MORE: Global tariff war: Key developments

Summers, who led the Treasury Department under President Bill Clinton, warned that the combination of rising government debt, widening deficits, and foreign investor anxiety could trigger a dangerous downward spiral. “This could set off all kinds of vicious spirals, given government debts and deficits and dependence on foreign purchasers,” he cautioned.

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Trump’s initial decision last week to impose a “baseline” tariff of 10% on all imports, and later to raise levies on Chinese goods to 125%, sent shockwaves through US financial markets, wiping out more than $10 trillion in stock market value. At the same time, the ten-year Treasury yield – normally considered a safe haven during market turmoil – surged to nearly 4.5%. The abrupt announcement of a 90-day freeze on further tariff increases sparked a dramatic rebound on Wall Street, although markets recovered only about half of the losses sustained.

Reacting to Trump’s reversal later on Wednesday, Summers doubled down on his criticism, accusing the administration of reckless policymaking and undermining America’s global credibility.

“Bullies back down. It is tragic to see the United States following banana republic policy approaches and market patterns,” Summers wrote. “The Administration was crowing over the weekend about all the countries that wanted to talk. No postponement then. Now they are rightly scared after collapsing markets.”

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Summers blasted the White House’s trade strategy as “reckless improvisation, not a strategy,” and accused officials of dishonesty about their motives.

“Even their new regime has tariffs near Smoot-Hawley levels and will cost middle-class families close to $2,000,” he warned, referring to the infamous 1930s tariff law widely blamed for deepening the Great Depression. “We are far from being out of the woods. Much credibility has been lost. Be afraid.”

While the White House has defended its tariff campaign as necessary to protect American jobs and force fairer trade terms, critics like Summers argue that the unpredictable swings in policy have rattled investors and risk causing long-term damage to the US economy.

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The US president has explained the sudden tariff pause after telling Americans to “be cool”

President Donald Trump has admitted that his decision to delay further tariff hikes was driven in part by a sharp downturn in the US financial markets, saying he was closely monitoring investor sentiment as people grew too “yippy” and “afraid” before announcing a 90-day freeze.

On Wednesday morning, Trump urged Americans to “be cool” and told investors that “this is a great time to buy,” after US markets lost more than $1.5 trillion in capitalization the day before. The sell-off came ahead of the implementation of a 104% tariff on Chinese imports and sweeping tariffs on dozens of other countries.

Just hours later, the president announced his decision to keep most tariffs at a “baseline” 10% – except for China, which saw its rate raised even further to 125%. Speaking to reporters later that day, Trump said he had been tracking the markets closely before taking action.

“I was watching the bond market. The bond market is very tricky. I was watching it. But if you look at it now, it’s... it’s beautiful,” he said. “But, yeah, I saw last night where people were getting a little queasy.”

I thought that people were jumping a little bit out of line. They were getting yippy, you know? They were getting a little bit yippy, a little bit… afraid.

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Trump’s announcement triggered a historic rally in the US stock markets. The S&P 500 closed up 9.5% – its biggest gain since 2008. The Dow Jones rose 7.9%, marking its best day since 2020, and the Nasdaq soared 12%, its largest single-day increase in 24 years.

While Wednesday’s surge added over $5 trillion in market value, the US markets have yet to fully recover losses sustained since the president launched the tariff war last week. Nevertheless, Trump insisted that his “reciprocal” trade actions marked a turning point.

“The big move wasn’t what I did today. The big move was what I did on Liberation Day. We had Liberation Day in America. We were liberated from all of the horrible trade deals that were made,” he said.

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Asked whether some American companies could be granted exemptions during the 90-day period, Trump said the administration would evaluate requests on a case-by-case basis. “Some [companies] get hit a little bit harder, and we’ll take a look at that – just instinctively, more than anything else,” he said. “You almost can’t take a pencil to paper. It’s really more of an instinct.”

Trump also cautioned that the situation remains fluid, adding that “nothing is over yet,” with dozens of countries – including China – now seeking to secure fair deals with the US to avoid the full impact of the tariffs.

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They’re messy, risky, and unpopular – but they might be part of a bigger, smarter plan

Let me play devil’s advocate for a minute. I’m not here to defend President Donald Trump’s tariffs. But I do want to push back against the way the conversation around them often unfolds – dismissing them offhand with a smug “well, that’s just dumb,” without any regard for the broader economic context, either at home or globally.

Yes, Trump often shoots from the hip. He lies outright, makes rookie mistakes in his speeches, and fumbles the details. But behind the bluster is a surprisingly coherent strategy – one that wasn’t cobbled together by fools. You don’t have to agree with it to at least try to understand what it is.

I don’t claim to have all the answers (frankly, I’m suspicious of anyone who says they truly understand what’s going on inside Trump’s head), but here’s how I see it.

What you need to know about global imbalances

At their core, global trade imbalances are the result of mismatches between national savings and investment. In countries such as China, Germany, Japan, and major oil exporters, savings tend to outpace domestic investment – capital has to go somewhere, so it flows abroad. This shows up as a trade surplus.

In the US, it’s the reverse. Americans save less than they invest, and the gap is filled by foreign capital. This creates a trade deficit.

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So how did we get here?

1. For decades, export-driven economies (China, Germany, Japan) have followed policies that shift income away from households – which are more likely to spend – toward corporations and the government, which tend to save. This artificially boosts the national savings rate. But since those savings can’t all be invested domestically, the excess capital flows abroad.

2. A lot of it – roughly a trillion dollars a year – ends up in the US. There are two main reasons for this:

• The American economy is built to encourage consumer spending, not saving.

• And in times of uncertainty, everyone from investors to governments runs to the dollar – it’s still the world’s safe haven.

Why is that a problem for the US?

In the short term, maybe it doesn’t look like a problem. The US economy remains strong. No one’s sounding alarm bells. But beneath the surface, imbalances are piling up: Persistent trade deficits, ballooning federal debt, and rising interest rates are a dangerous mix. As borrowing becomes more expensive, it gets harder and harder to service that debt.

On top of that, China has slowed its push to boost domestic consumption, and Europe’s economic woes are driving even more capital into the US. This only deepens the imbalance.

Trump knows his political clock is ticking – midterms are around the corner. If he’s going to act, it has to be now.

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What are his options?

So how can the US boost savings, shrink the trade deficit, and bring down long-term interest rates? In theory, there are several levers:

• Cut government spending – Trump has pushed for this (just look at the work of DOGE and others).

• Slash corporate taxes and invest in industry – the first increases inequality, and the second is hard to pull off in a polarized political system. Still, both are being pursued, in part through tariffs.

• Limit capital inflows – politically toxic.

• Reduce the dollar’s role as the global reserve currency – difficult to do unilaterally, and potentially destabilizing.

• Impose tariffs – politically the easiest, and the one Trump has clearly chosen.

My guess? Tariffs are just the tip of the spear. The broader plan likely includes pieces of all five approaches.

Legit critiques

Still, the criticisms are real – and in many cases, valid.

First: Why is Trump using a slapdash, anecdotal chart of tariff levels across countries to justify his actions? As Olivier Blanchard quipped, we all run trade deficits with our baker and surpluses with our employer. It’s the same at the international level. Trying to ‘balance’ every bilateral trade relationship is not just naive – it misses the point entirely.

But Trump isn’t necessarily trying to balance trade; he’s trying to negotiate. The US market is so critical to so many countries that Trump seems to be leveraging access to it for concessions. If you’re going to raise tariffs anyway, why not squeeze some extra benefits out of it?

Second: Some warn this could lead to a global crisis. They point to the Smoot-Hawley Tariff Act of 1930, which many blame for deepening the Great Depression. But let’s not oversimplify history. Back then, the US had a trade surplus, a consumption shortfall, and rampant overinvestment – tariffs only made things worse. Today, the US has the opposite problem.

That said, we can’t rule out a disaster. It all depends on how the trade war unfolds. I suspect a good chunk of the tariffs will eventually be rolled back as part of negotiated deals. And even if they’re not, the initial pain will fall hardest on surplus countries like China, Germany, Japan, South Korea – and yes, Russia. The US would feel the impact last.

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There’s even a real possibility that the US, after triggering a global crisis, could emerge in a stronger position.

But inflation is no joke

The biggest immediate risk is inflation – and maybe even stagflation. Trump argues that domestic production will ramp up to meet demand and keep prices in check. I’m skeptical. Production takes time. Price increases don’t.

And there’s still too much we don’t know:

• How dependent are US companies on foreign components?

• How much of future inflation will be driven by imported parts and materials?

• Will the other parts of the deficit-reduction plan actually happen?

• And how will global deflationary forces – countries dumping excess goods into non-US markets – interact with rising domestic prices?

The bottom line

Trump is gambling – big time. Tariffs are a blunt, inefficient tool. Economists know this. That’s why so many of them are freaking out.

But this isn’t really about tariffs. It’s about trying to reshape the economic model the US – and the world – has operated under for the past 30, even 80 years.

It’s bold. It’s dangerous. I don’t think it’s justified. But it’s not insane.

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The countermeasures, which take effect next week, will reportedly be limited to certain products

EU member states have approved retaliatory measures to counter the tariffs imposed by US President Donald Trump on the bloc’s steel and aluminum. The response does not address the 20% US tariffs on all EU exports that came into force on Wednesday.

Trump, who has repeatedly accused the EU of treating America “badly,” introduced 25% duties on metals last month, saying the policy targeted nations that impose high barriers for US goods.

The European Commission did not disclose the list of targeted goods or tariff levels, but media reports citing internal documents said the measures would cover a wide range of US goods, including poultry, grains, clothing and metals. Most of the goods would reportedly face a 25% tariff, with a few categories subject to 10%. According to a statement, released by European Commission on Wednesday, the bloc’s countermeasures will take effect on April 15.

EU diplomats with direct knowledge of the decision told Politico that only Hungary opposed the package, while all other 26 members backed it.

The volume of US imports affected will reportedly be slightly less than the volume EU exports hit by the US tariffs, at around €22 billion ($23.8 billion) per year. Bourbon was removed from the list due to pressure from France, Ireland and Italy after Trump warned that targeting it could trigger a 200% tariff on European alcohol, media wrote.

The Commission said that the EU considered US tariffs “unjustified and damaging,” causing economic harm to both sides, as well as the global economy. The countermeasures could be suspended “at any time” if the US agrees to a “fair and balanced negotiated outcome,” it added.

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The current measures do not address Trump’s separate move to impose 20% tariffs on all EU exports, which came into force on Wednesday as part of his so-called ‘Liberation Day’ tariffs, nor his latest 25% tariff on cars.

The Commission is preparing a second package of retaliatory measures to respond to those tariffs, which could be presented as early as next week, trade spokesperson Olof Gill said on Tuesday.

Trump announced sweeping global tariffs last week, arguing they were necessary to restore global trade fairness and accusing other nations of “ripping off” the US through “harmful policies.”

He called the EU “very tough traders” and said American firms pay more than $200 billion a year in value-added taxes across Europe. Trump warned of further measures if the bloc retaliates.

The escalating trade tensions have rattled global markets and raised concerns of a global recession.

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Crude has dropped below $60 a barrel as markets brace for the fallout of the trade war and weaker global demand

Oil prices have dropped to their lowest point in over four years, with losses deepening on Wednesday as markets respond to fears of recession and slowing energy demand.

Brent crude, the global benchmark, fell to about $61 per barrel, while US West Texas Intermediate (WTI) dropped to around $58, both reaching their lowest levels since February 2021.

The slide began after US President Donald Trump announced a round of sweeping tariffs on most imports last week. Since then, prices have tumbled around 16%, as concerns grow that a global trade war could damage growth and reduce fuel consumption. The situation escalated on Wednesday when Trump’s tariffs took effect. While energy imports were exempt, the markets reacted sharply.

The new round of tariffs brings the rate on Chinese goods to 104%, up from the 34% initially announced. China had responded with a matching 34% tariff, prompting the White House to raise the stakes.

China’s Commerce Ministry vowed to respond decisively, raising fears of a broader economic slowdown. Analysts worry that prolonged tensions between the two top economies could drag down trade and stifle investment.

OPEC and its allies, including Russia, added pressure to the market by announcing a 411,000 barrel-per-day production increase for May. Analysts say this could lead to oversupply and deepen price drops.

“Crude oil has been in free-fall ever since President Trump unveiled fresh tariffs on US imports Wednesday evening,” Trade Nation senior market analyst David Morrison said in a note seen by Business Insider. He added the OPEC+ production boost was a “double whammy.”

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Morrison said oil prices may stabilize within a narrow range, as investors anticipate weaker demand and strong supply. He noted this trend supports Trump’s goal of providing cheap energy to strengthen manufacturing.

The White House has pushed to bring crude prices down to $50 or lower, according to J.P. Morgan. Trump reinforced this goal on Monday, writing on Truth Social: “Oil prices are down, interest rates are down,” while highlighting the benefits of his trade strategy.

Russia was left out of the new tariffs. The White House explained that the existing sanctions already “preclude any meaningful trade,” making further restrictions unnecessary.

However, Russia’s central bank warned that the collapse in oil prices and the expanding trade conflict could harm its economy. “If the escalation of the tariff wars continues, this usually leads to a decline in global trade and the global economy, and possibly, demand for our energy resources,” central bank head Elvira Nabiullina said on Tuesday.

Russia’s Urals crude also dropped sharply, briefly nearing the $50-per-barrel mark for the first time in almost two years, before recovering to around $67.

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The announcement comes despite Tokyo’s pledge to phase out the sanctioned country’s energy

Japan will continue participating in Russian liquefied natural gas (LNG) projects on Sakhalin Island due to their strategic importance for the country’s energy security, according to an annual report released on Tuesday. However, Tokyo reiterated its intention to gradually reduce dependence on Russian energy.

Japan has fully supported the Western sanctions imposed on Russia over the Ukraine conflict and has introduced multiple rounds of restrictions over the past three years. Tokyo also joined the G7’s $60-per-barrel price cap on Russian seaborne oil.

“The Sakhalin-1 and Sakhalin-2 oil and natural gas development projects are important for Japan’s energy security in terms of ensuring a stable supply in the medium and long term, and we intend to maintain our participation in them,” the Foreign Ministry stated in the 2025 edition of its Diplomatic Blue Book, which reviews Japan’s activities in the realm of foreign affairs.

The ministry added that Japan will continue pursuing a policy of gradually decreasing reliance on Russian energy, including oil and coal, while minimizing the negative impact on Japanese citizens and businesses.

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Japan’s state-run consortium Sodeco holds a 30% stake in the Sakhalin-1 oil and gas project, while Indian state oil company ONGC Videsh owns 20%. Two subsidiaries of Russia’s oil giant Rosneft hold stakes of 8.5% and 11.5%. After US multinational ExxonMobil, which previously operated Sakhalin-1, opted to withdraw from the project following the escalation of the Ukraine conflict in 2022, its 30% share was transferred to Sakhalinmorneftegaz-Shelf, a Rosneft subsidiary.

Its sister project, Sakhalin-2, is one of the world’s largest LNG ventures, supplying around 4% of the global market. In 2022, Russian President Vladimir Putin signed a decree transferring the assets of Sakhalin Energy, the former operator of Sakhalin-2, to a new Russia-based operator, Sakhalin Energy LLC. Foreign shareholders were allowed to take a stake in the new operator proportionate to their previous holdings.

The Japanese firms Mitsui and Mitsubishi opted to retain their stakes of 12.5% and 10%, respectively, while British energy giant Shell, which held a 27.5% minus one share stake in Sakhalin Energy, declined to join the new entity. As a result, the Russian government sold Shell’s stake to a Gazprom subsidiary for roughly $1 billion.

READ MORE: Russian LNG exports hit new record – Kpler

Though Japan does not import fuel under the Sakhalin-1 project, Tokyo considers it important for diversifying supply sources and ensuring long-term stability. In October 2022, then-Japanese Trade Minister Yasutoshi Nishimura emphasized the project’s significance, noting that Japan depends on the Middle East for 95% of its oil imports.

Japan is one of the world’s largest LNG importers and relies on Russia for 9% of its total liquid gas supply, mostly through long-term Sakhalin-2 contracts.

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Financiers have warned of imminent recession and other problems for the US economy

A host of American financiers and billionaire investors have criticized President Donald Trump over the sweeping tariffs he announced last week, calling the measures “poorly advised” and warning of serious consequences for the US economy.

On April 2, Trump imposed a minimum 10% tariff on all imports and introduced “reciprocal” duties ranging from 11% to 50% on dozens of countries he accused of maintaining unfair trade imbalances. China responded with a reciprocal tariff of 34% on US imports, while a number of other nations signaled willingness to negotiate with Washington but threatened countermeasures if talks fail. Global markets have reacted sharply, with major indexes in the US, Europe, and Asia falling for three straight days.

JPMorgan Chase CEO Jamie Dimon slammed the tariffs in his annual letter to shareholders, warning they “will probably increase inflation” and the risk of recession, with the negative effects difficult to reverse.

Ken Langone, billionaire co-founder of retailer Home Depot, criticized the tariffs as too high and rushed. In an interview with the Financial Times published on Monday, he described the additional 34% tariff on China – on top of the existing 20% - as “too aggressive, too soon,” and called the 46% levy on Vietnam “bullshit.”

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“I don’t understand the goddamn formula,” Langone said, urging a more measured approach, such as a 10% across-the-board tariff with waivers negotiated on a case-by-case basis. He added that he expects Trump to eventually pursue talks with trade partners because “right now, what everybody’s terrified of is a tariff war.”

Hedge fund investor Stanley Druckenmiller, a close mentor to Treasury Secretary Scott Bessent, posted a brief statement on X on Sunday: “I do not support tariffs exceeding 10%.”

Billionaire investor Bill Ackman called the tariffs an “economic nuclear war” in a post on X. He called for a 10% flat tariff for “the privilege” of access to the US market but suggested pausing the reciprocal duties for 90 days to allow private negotiations. He lambasted Trump for relying on advisers for economic calculations, which he labeled incompetent.

“The global economy is being taken down because of bad math,” he wrote.

Even tech mogul Elon Musk, Trump’s government efficiency czar, joined the criticism. He posted a series of comments on social media targeting White House trade adviser Peter Navarro, a key architect of the tariff plan, saying he “ain’t built sh*t” with the policy. Musk’s brother, Tesla board member Kimbal Musk, also condemned the tariffs, calling them a “structural, permanent tax on the American consumer.”

READ MORE: US officials quietly drafting plan to cushion Trump tariff fallout – Bloomberg

Treasury Secretary Bessent said on Monday that Washington is open to “meaningful negotiations” in the coming weeks with trade partners, but only those who have responded “positively” to Trump’s tariffs. He criticized China for its response levies, accusing Beijing of “choosing to isolate itself by retaliating and doubling down on previous negative behavior.” China, in turn, described the new US tariffs as “economic bullying” and warned they could destabilize the entire global trade system.

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The US president has threatened further escalation with an extra 50% levy against Beijing

China’s Commerce Ministry has warned Washington against entering a spiral of tit-for-tat trade restrictions, after US President Donald Trump threatened to impose additional tariffs on Chinese imports.

Last week, the US president announced sweeping new tariffs on imports from around the world, including a 34% duty on Chinese goods. In response, Beijing vowed to retaliate with a proportional 34% tariff increase on American exports – prompting Trump to threaten further escalation.

Beijing condemned the growing trade war as a form of “ economic bullying,” with the Commerce Ministry promising on Tuesday to take firm countermeasures to protect China’s national interests.

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“China will fight till the end if the US side is bent on going down the wrong path,” a ministry spokesperson said, as quoted by Xinhua.

Trump has defended what he calls “reciprocal tariffs” – which range from 10% to 49% on imports from all countries – as a necessary step to eliminate the US trade deficit. He argues the tariffs will make foreign goods less attractive for American consumers, while pressuring international partners to open their markets to US exports.

In a post on Truth Social Monday, Trump warned that not only China, but any country that dares to retaliate “will be immediately met with new and substantially higher tariffs.”

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The intensifying global trade war has already rattled financial markets. According to Bloomberg, more than $10 trillion had been wiped off global equities as of Monday. Bitcoin dropped below $75,000 for the first time in five months, while most of the top 100 altcoins fell by 15% or more. Meanwhile, JPMorgan raised the odds of a US and global recession to 60% by year-end, up from a previous estimate of 40%.

Trump defended his actions, stating that “sometimes you have to take medicine to fix something,” and promised that jobs and investment would return to the United States, making it “wealthy like never before.”

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Washington’s levies affect around 70% of the bloc’s total exports, according to Commissioner Maros Sefcovic

The EU is ready to deploy “every tool” to shield its market from the impact of US President Donald Trump’s new tariffs if negotiations fail, Trade Commissioner Maros Sefcovic has said.

Trump announced last week that Washington would impose levies ranging from 10% to 50% on imports from countries it accuses of unfair trade practices. The EU faces a blanket 20% tariff starting Wednesday.

Speaking at a press conference on Monday, Sefcovic said the trade relationship with the bloc’s largest partner was in a “tough spot.” He stressed that Brussels remained open to talks, but “will not wait endlessly.”

The new tariffs will hit a “significant portion” of EU exports, Sefcovic warned, noting that around €380 billion ($410 billion) worth of goods – or about 70% of the bloc’s total exports to the US – are now facing duties of 20% or higher.

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The additional charges would exceed €80 billion, compared with the €7 billion Washington currently collects, he added.

“We are prepared to use every tool in our trade defense arsenal to protect the EU Single Market, EU producers, and EU consumers,” Sefcovic stated.

He also noted that European Commission President Ursula von der Leyen had offered a “zero-for-zero” tariff deal on cars and industrial goods to defuse tensions.

According to Sefcovic, the Commission has prepared a “robust list of countermeasures,” which will be voted on April 9 and formally adopted on April 15. The first wave of retaliatory duties will come into effect that day, with a second round following on May 15.

Trump has framed his ‘Liberation Day’ tariffs as a move to restore balance to global trade, accusing other nations of “ripping off” the US through “harmful policies.”

He argued that the bloc’s total levies on US goods amounted to 39% and claimed that American firms pay more than $200 billion a year in value-added taxes across Europe.

Von der Leyen called the tariffs a “major blow to the world economy.” Global stocks have tumbled since the tariff announcement, a selloff that deepened in many markets on Monday.

Trump defended the move, writing on Monday on Truth Social that the levies were delivering significant economic gains.

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The slide on Wall Street has continued after the White House doubled down on tariffs against Beijing

US stocks plunged sharply before recovering in another turbulent trading session on Monday. Markets continued to reel after President Donald Trump imposed tariffs on all imports and threatened even higher levies on China, escalating fears of a prolonged trade war.

The Dow Jones tumbled as much as 1,200 points intraday on Monday, or 3%, following back-to-back losses of over 1,500 points last week—marking the first time this has ever occurred on consecutive days. The S&P 500 dropped as much as 4.7% during the session, pushing it over 19% below its record high and briefly into bear market territory. The Nasdaq was down 3%, sinking further into bear market levels with a 23% decline from its peak.

Stocks attempted somewhat of a comeback later in the session, recovering most of the early losses. The Dow closed 349 points lower, with the S&P slightly in the red and the Nasdaq flat to positive.

On Saturday, Trump’s initial unilateral 10% tariff took effect, and hopes that over the weekend the administration would announce progress in negotiations were dashed. Instead, after Beijing retaliated, the president doubled down.

“If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” Trump wrote on Truth Social on Monday.

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Business leaders have voiced growing concern over the White House’s aggressive trade stance.

“The president is losing the confidence of business leaders… we are heading for a self-induced, economic nuclear winter,” billionaire investor Bill Ackman wrote on X.

The market turmoil has spread globally. On Monday, Germany’s DAX dropped over 4%, and Hong Kong’s Hang Seng Index plunged 13%, its steepest drop since 1997. In commodities, US crude oil fell below $60 per barrel while Bitcoin slid under $77,000.

“Margin calls are going out as we speak,” FWDBONDS chief economist Chris Rupkey told CNBC. “For a third straight day investors in US equity markets have turned (a) huge thumbs down on the White House Liberation Day tariffs which have rocked Wall Street,” he added.

JPMorgan last week lifted the odds for a US and global recession to 60% by the end of the year, up from 40% previously.

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Washington rewrites trade law by ignoring it

The future of global trade and the impact of US President Donald Trump’s latest tariff initiatives will largely depend on Washington’s ultimate objective. Is the United States preparing to leave the World Trade Organization (WTO), or is it trying to force long-overdue reforms upon an organization it has increasingly sidelined?

By imposing sweeping new tariffs, the US has not only blatantly violated its WTO commitments but has also signaled that it no longer feels bound by international trade law. Moreover, Washington has shown no intention of invoking the WTO’s existing mechanisms for handling emergency tariff hikes. This overlooked point is crucial: either America returns to playing by the rules, or it continues down a path where trade is governed by unilateral concepts, not multilateral law. The very future of US participation in the WTO hinges on this decision.

The WTO has two tools to enforce compliance: moral pressure and retaliatory measures. Moral pressure may work on smaller nations, but it’s ineffective against the seasoned negotiators of the world’s largest economy. Retaliation, meanwhile, is a slow process. Under WTO rules, it can only occur after a dispute has been adjudicated, a ruling issued, and damages quantified. This takes up to two years. But with the WTO Appellate Body paralyzed – thanks to a US blockade – such resolutions are currently impossible. Any countermeasures taken by other countries would themselves be WTO violations. The institution was simply not designed for such breakdowns.

While the WTO cannot expel the United States, it can consider alternative arrangements to preserve its multilateral functions without American participation. These are not simple, but they are feasible. Many members would even welcome a US exit. In recent years, Washington has not only ceased leading the organization but has actively disrupted it.

Still, the US is not formally withdrawing, and some of its reform proposals deserve attention. For instance, it has suggested recalibrating the special treatment given to developing countries, pointing out that several of them are now major global economic players. Washington also advocates stricter discipline on members that fail to file timely notifications about their trade policies and subsidies. Its proposal to bar such “delinquent” countries from meetings and increase their dues met fierce resistance from WTO bureaucracies – a reaction that may have only fueled America’s turn to tariffs.

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The threat of a “WTO minus the US” is a pressure tool in itself. But the US still derives over 40% of its corporate profits from overseas, and abandoning all influence over global trade rules hardly suits its strategic interests. Yet creating an effective alternative path requires unprecedented coordination among WTO members – something the current leadership vacuum makes difficult. The EU lacks the resolve, China is not yet ready, and collective leadership among like-minded countries is proving inefficient.

The most likely outcome will be a series of reciprocal deals. Smaller economies reliant on US markets may offer tailored concessions. Nations like Switzerland and Singapore, which already operate with minimal tariffs, could adjust more easily. Non-tariff barriers are typically easier to revise, provided they don’t conceal protectionism.

For major economies such as the EU or Japan, the playbook may involve retaliatory action first – to alarm American industries – followed by negotiations. This could mobilize US corporate lobbying power, forcing Washington to reconsider its position. If Trump’s real objective is simply to extract better access for US companies abroad, this classic approach may work.

But if his aim is different – such as provoking a controlled global economic crisis to eliminate the US trade deficit – then the situation becomes far more volatile. In this case, the tariffs will persist, and compromise will remain elusive.

Under such a scenario, international trade faces significant risks. Some forecasts estimate that global GDP could shrink by 0.3-0.5% due to the combination of US tariffs and retaliatory moves. Disrupted supply chains will intensify competition in third-country markets. US imports could fall by up to a third, stoking inflation and creating shortages for American consumers.

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Paradoxically, the US could also experience a surge in domestic investment. One recent projection suggested up to $3 trillion could be redirected into the American economy. Trump’s approach may be an aggressive version of import substitution, with all the known advantages and drawbacks.

Russia, for now, is not directly affected by these tariff moves. Bilateral trade has already collapsed under the weight of sanctions, and no new US tariffs specifically target Russia. However, the secondary effects could be significant.

Global trade flows resemble a network of rivers. Trump’s tariff dam, compounded by retaliatory levees, will force goods to flood other markets – often at steep discounts. These displaced exports will depress prices and undermine local industries, including Russia’s. Falling demand for industrial inputs like oil, gas, and metals could hurt our economy.

Meanwhile, imports into Russia may rise. That might be fine if it’s limited to Harley-Davidsons or American whiskey, which face little domestic competition. But if cheaper foreign metals, chemicals, or automobiles flood in, the consequences for Russian manufacturers could be severe.

China, as the main target of US tariffs, may increase its exports to Russia. In theory, Beijing can regulate its export flows. We must engage with Chinese officials to develop a coordinated approach to prevent destabilizing surges.

Fortunately, Russia has the legal infrastructure to respond: we can raise tariffs, counter dumping, and retaliate against subsidized imports. But implementation is another matter. Decision-making in the Eurasian Economic Union (EAEU) is slow and often paralyzed by conflicting national interests. It currently takes a year to adjust tariffs and up to 18 months for safeguard measures. This system, built for a calmer world, needs urgent reform.

It’s also time for Russia to scrutinize the dozens of free trade zones we’ve signed. Trump has attacked NAFTA and other deals for hollowing out US industry. We should ask ourselves: who truly benefits from our trade preferences?

Every decision in trade policy has consequences. Trump’s tariff strategy offers a case study in how those consequences unfold.

This article was first published by Kommersant, and was translated and edited by the RT team.

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Audi is holding back vehicles that fall under the new tariffs, according to a report

German carmaker Audi is halting deliveries of its vehicles to the US due to the new tariffs on automobiles imposed by US President Donald Trump, the newspaper Automobilwoche has reported.

Trump’s 25% levy on car imports took effect last week as part of a series of “reciprocal” measures that have rattled global markets.

A spokeswoman for Audi told the outlet on Monday that a letter had been sent to dealers instructing them to withhold all vehicles that arrived after April 2. Dealers were also urged to focus on reducing existing inventory.

Audi currently has more than 37,000 vehicles in stock in the US that are not affected by the new tariffs and can be sold, the spokeswoman said, adding that this inventory should last about two months.

The company does not operate its own production facility in the US and imports all of its vehicles. Its US bestseller, the Q5, is produced at Audi’s plant in Mexico, while other models are sourced from factories in Germany, Hungary, and Slovakia.

Audi’s parent company, Volkswagen, has also warned US dealers of additional costs, according to a Wall Street Journal report last week. Volkswagen has reportedly halted the deliveries by rail from Mexico and from US ports. Clarity on pricing is expected by mid-April.

On April 3, Trump slapped tariffs on nearly all of America’s trading partners, including the EU, arguing the measures were needed to protect US manufacturers. In addition to the 25% levy now applied to car imports, 150 categories of auto parts will also become subject to the surcharge starting in May.

The German Association of the Automotive Industry called the tariffs “a disastrous signal for free, rules-based trade.”

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Analysts warn the German auto industry could be among the hardest hit, with Volkswagen and Mercedes-Benz facing significant challenges in the US market. Rising production costs and factory closures have already put pressure on parts of Germany’s manufacturing sector.

On Monday, European Commission President Ursula von der Leyen, who has called Trump’s tariffs a “major blow to the world economy,” offered to scrap duties on all industrial goods as part of trade talks.

“We stand ready to negotiate,” she said. “We have offered zero-for-zero tariffs for industrial goods as we have successfully done with many other trading partners.”

Von der Leyen noted the EU has “repeatedly” proposed a zero-tariff agreement for the automotive sector in the past but received “no adequate reaction” from Washington. She warned that the bloc is prepared to impose countermeasures to defend its interests.

Trump on Monday defended the tariffs, claiming on social media they delivered significant economic benefits.

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The country is raking in “billions” from duties already in place, according to the US president

Tariffs are yielding significant economic benefits, US President Donald Trump has claimed, citing a spike in revenue from duties on imports, and declining oil prices.

Trump took to social media on Monday morning, amid the global fallout from an escalating trade war with China and other major global players.

Last week, the US implemented a levy on imports, ranging from 10% to 50%, on all countries it perceives as engaging in unfair trade practices. The EU faces a blanket 20% tariff as of Wednesday, while Chinese goods have been hit with 34% duties.

The measures have prompted multiple countries to seek to negotiate with Washington, however, Beijing has announced a reciprocal 34% tariff on US goods, effective April 10.

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”Oil prices are down, interest rates are down (the slow-moving [Federal Reserve] should cut rates!), food prices are down, there is NO INFLATION, and the long-time abused USA is bringing in Billions of Dollars a week from the abusing countries on tariffs that are already in place,” Trump wrote on Truth Social.

The escalation of the tariff war has significantly impacted oil prices. Brent crude, the global benchmark, fell roughly 14% over the past five days to just over $64 a barrel on Monday. Russia's flagship Urals crude grade has declined alongside major oil benchmarks, approaching $50 per barrel for the first time in nearly two years.

Global stock markets have also plunged since the tariff announcement, extending a global sell-off on Monday.

The Federal Reserve Board, the entity responsible for formulating US monetary policy and overseeing financial institutions in the country, is scheduled to conduct a closed-door meeting on Monday.

READ MORE: The art of (no) deal: Can the EU stand up to Trump’s tariffs?

The benchmark interest rate, known as the federal funds rate, is currently set at a target range of 4.25% to 4.50%. Over the past year, the Federal Reserve adjusted the rate multiple times, lowering it in the last three meetings, the last of which was in December 2024.

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Bitcoin has plunged by 10%, while the broader market has recorded over $1.38 billion in liquidations

The Bitcoin price has dropped below $75,000 for the first time in five months as investors braced for financial market turbulence, following the rollout of US President Donald Trump’s sweeping global tariffs. The majority of the top 100 altcoins also saw their value plunge by around 15% or more following the steepest decline in US equities since 2020.

The Trump administration imposed a blanket 10% tariff on all countries starting April 5, with some hit with steeper rates, including China at 34%, the EU at 20%, and Japan at 24%. The measures have stoked fears of a global trade war that could potentially drag the American economy into a recession.

The price of Bitcoin dropped beneath a key technical level – $79,000 to $80,000 – over the weekend. It plunged further below $75,000 on Monday and then settled at $76,000 after hitting almost $90,000 just a week earlier. Ethereum dropped 14.19% to $1,551.52, while XRP fell 14.52% to $1.81. Binance Coin declined by 6.51%, and Solana tumbled 13.96%.

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Bitcoin’s decline sparked a wave of long liquidations, as traders who had bet on rising prices were forced to sell off their positions to cover mounting losses. Over the past 24 hours, Bitcoin accounted for more than $247 million in long liquidations, according to CoinGlass. Ether followed closely behind, with $217 million in long positions wiped out during the same period.

In total, the crypto market recorded over $1.38 billion in liquidations, with the majority coming from long positions. Around $1.21 billion was erased from traders betting on prices to rise, according to Coinglass.

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Mounting fears over the widespread impact of the tariffs sent shockwaves through global markets. European stock markets fell on Monday morning, continuing a global selloff that had already rattled Asian markets.

“There is a lot of noise at the moment,” Geoff Kendrick, Standard Chartered’s head of digital assets research, was quoted by CNBC as saying.

“I think Bitcoin will become a hedge against tariff risks this time around. US isolationism is akin to increased risks of holding fiat, which will ultimately benefit Bitcoin,” he added.

Trump, however, defended the tariffs on Sunday, saying they were necessary to fix trade deficits with China, the EU, and others. He acknowledged the market sell-off, noting that while he was aware of the downturn and didn’t want to see values decline, he had no intention of easing the tariffs.

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The Wall Street bank has raised the odds of a downturn in the country’s economy following Donald Trump’s massive tariff hike

Goldman Sachs has raised the odds of a US recession, warning that President Donald Trump’s sweeping new tariffs are tightening financial conditions and weighing on investment.

In a research note titled ‘US Daily: Countdown to Recession’ distributed on Monday, Goldman increased the probability of a downturn in the country’s economy in the next 12 months to 45%, up from 35% the week prior. It also slashed its 2025 growth forecast for the US economy from 1.0% to 0.5%.

The revision follows Trump’s April 2 announcement of a minimum 10% tariff on all imports and “reciprocal” duties of 11% to 50% targeting dozens of nations with what he called unfair trade imbalances. The EU is set to be hit with a 20% tariff, and China with 34% when the hikes take effect on April 9. Beijing has already announced mirror tariffs on US goods, while other countries condemned the move and vowed countermeasures.

“Financial conditions tightened more aggressively than we had expected in response to the White House’s announcement of its ‘reciprocal’ tariff and the Chinese government’s announcement of its retaliatory tariffs,” Goldman analysts said in the note, explaining the revision. They added that “a sharp tightening in financial conditions, foreign consumer boycotts, and a continued spike in policy uncertainty” following Trump’s tariff announcements will “likely depress capital spending by more than we had previously assumed.”

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The bank said its projections assume the US might roll back some tariffs following talks with trade partners this week. However, “if most of the April 9 tariffs do take effect… we expect to change our forecast to a recession,” the note warned.

Other analysts have issued similar alerts, and a number of investment banks raised their recession risk forecasts last week. JPMorgan put the odds of a US and global recession at 60%, calling the “disruptive” US tariff policies “the biggest risk to the global outlook all year.”

Billionaire investor Bill Ackman echoed the warning in a post on X on Sunday, calling the tariffs an “economic nuclear war” that could “destroy confidence in our country as a trading partner, as a place to do business, and as a market to invest capital.”

“We are heading for a self-induced, economic nuclear winter, and we should start hunkering down,” he said.

READ MORE: IMF discounts Trump tariff recession threat

Trump, however, defended the tariffs aboard Air Force One on Sunday.

“Sometimes you have to take medicine to fix something,” he said, pledging to “solve the deficit problem that we have with China, with the EU, and other nations.”

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The pan-European Stoxx 600 index, which tracks the leading companies in the region, has plunged to its lowest level in 16 months

European stock markets fell on Monday morning, continuing a global selloff triggered by US President Donald Trump’s new tariffs that had already rattled Asian markets.

The pan-European Stoxx 600 index, which tracks the leading companies in the region, dropped more than 6% shortly after opening, hitting its lowest level since December 2023. Germany’s DAX tumbled nearly 10%, France’s CAC 40 slid 6.6%, and Italy’s FTSE MIB fell 5.7%.

In London, the FTSE 100 index of blue-chip stocks dropped 6%, marking its worst day since the early days of the Covid-19 pandemic in 2020. Every stock in the index was in the red one hour after the market opened.

Shares in defense firms and banks led the decline. German arms maker Rheinmetall plunged nearly 24%, and UK-based Rolls-Royce lost 12%. Mining and investment companies were also among the hardest hit.

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The rout followed Trump’s April 2 announcement of a 10% baseline tariff on all imports and additional “reciprocal” duties targeting dozens of countries with what he described as unfair trade practices. China responded with a 34% tariff on US goods. Several other nations condemned the move and pledged countermeasures. The EU, which faces a 20% tariff under Trump’s order, is set to begin talks with Washington later this week. European Commission President Ursula von der Leyen warned that if the talks fail, the bloc would take unified retaliatory action.

Trump defended the tariffs on Sunday, saying they are necessary to fix trade deficits with China, the EU, and others.

Market watchers, meanwhile, warned of prolonged turbulence as investors wait to see whether Trump will reverse course.

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“This market is looking for concrete action, not talk of action,” Kathleen Brooks, research director at XTB, wrote in a note to The Guardian. “The best panacea for financial markets right now would be a pause or reversal from the US on its tariff program.”

UBS Global Wealth Management chief economist Paul Donovan added: “Over the weekend, US administration officials gave contradictory statements on trade taxes, causing investors to question the existence of a master plan… If the competence of policymaking is questioned, markets will worry that economic damage will be lasting.”

Asian markets also plunged on Monday. Japan’s Nikkei 225 fell to its lowest since October 2023, while indexes in China, Taiwan, South Korea, and Australia all traded in the red. US futures pointed to more losses after last week’s steep drop, when the S&P 500, Dow, and Nasdaq posted their worst results since the 2020 pandemic crash.

For more stories on economy & finance visit RT's business section

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Crude prices have dropped below $64 per barrel as US-China trade tensions fuel fears of a recession

Oil prices tumbled over 3% on Monday, deepening last week’s losses, as escalating US-China trade tensions heightened fears of a recession that could slash crude demand. Global benchmark Brent crude futures for June 2025 delivery plunged below $64 per barrel on London’s Intercontinental Exchange for the first time in four years, according to trading data.

Brent crude dropped $2.28 to $63.30 a barrel, while US West Texas Intermediate (WTI) fell $2.20 to $59.79, both hitting their lowest levels since April 2021.

A perfect storm began to form late on Wednesday after US President Donald Trump unleashed a sweeping tariff onslaught, imposing blanket duties on all US trading partners, notably China, which is the world’s largest oil importer. Although energy was technically spared, markets reacted swiftly.

Oil prices nosedived 7% on Friday after China hit back at the US by slapping 34% import tariffs on American goods, intensifying the trade war and fueling recession fears among investors. Brent crude ended the week down 10.9%, while WTI sank 10.6%, marking one of the sharpest weekly losses in recent months.

“It’s hard to see a floor for crude unless the panic in the markets subsides and it’s hard to see that happening unless Trump says something to arrest snowballing fears over a global trade war and recession,” Vandana Hari, founder of oil market analysis company Vanda Insights, told Reuters.

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The downturn in oil prices aligns with broader market turmoil as investors react to mounting economic uncertainties.

Although imports of oil, gas, and refined products were spared from Trump’s sweeping tariffs, analysts have noted that the broader policy shifts risk igniting inflation, slowing economic growth, and heightening trade tensions – factors that could further weigh on oil prices.

The ongoing slide in oil prices comes on the heels of an April 3 announcement from OPEC, revealing that eight OPEC+ member nations will fast-track production increases in May – raising output by 411,000 barrels per day, more than triple the previously planned 135,000 bpd.

Experts interviewed by TASS said the move reflects the current balance in the oil market. Despite falling prices, conditions are stable enough for OPEC to begin ramping up previously curbed production.

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Markets across Asia-Pacific opened sharply lower, extending last week’s global sell-off

Asian stock markets plunged on Monday, extending a global sell-off sparked by US President Donald Trump’s new tariff hikes and China’s retaliatory measures.

Last week, Trump imposed a 10% baseline tariff on all imports and announced additional “reciprocal” duties on dozens of countries with what he called unfair trade imbalances. China responded with a 34% tariff on US goods, mirroring Trump’s levy. Other countries also signaled plans to impose retaliatory tariffs. The moves triggered fears of a trade war and a potential US recession, leading to a market rout that erased nearly $5 trillion in value off US stocks last week.

Japan’s Nikkei 225 index dropped nearly 9% in early Monday trading, its lowest since October 2023. It recovered slightly but was still down over 7% by midday. Japan’s bank stock index fell as much as 17%.

Hong Kong’s Hang Seng had plunged nearly 14% as of 7:30 GMT, while Shanghai’s Composite index was down 7.3%. Shares of Chinese tech giants Alibaba and Tencent dropped 17% and 12% respectively. Taiwan’s exchange fell almost 10% on opening – its largest one-day percentage and point loss on record. South Korea’s Kospi index dropped 5.5% and was briefly halted. Australia’s S&P/ASX 200 closed down 4.2%, marking its worst session since the Covid-19 pandemic.

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The European markets also started the day with losses. The pan-European Stoxx 600 index, which tracks the 600 leading companies in Europe, slumped by over 6% at market open, to its lowest level since early December 2023. US markets also appeared headed for losses. S&P 500 futures slid 2.5%, with similar trends for the Dow and Nasdaq.

“Wherever we look this morning, it’s a bloodbath,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank, in a note to The Guardian. “The S&P500 is down by almost 4%... and the week hasn’t even started yet.”

US markets had already posted their worst drop since the 2020 Covid-19 crash last week, with the S&P 500 down 6%, the Dow off 5.5%, and the Nasdaq falling 5.8% at Friday close. Billionaire US investor Bill Ackman warned on X on Sunday that Trump had triggered an “economic nuclear war” which could hurt domestic economy, and urged him to reverse course.

READ MORE: JPMorgan sounds global recession alarm

Trump, however, defended the tariffs. Speaking to reporters aboard Air Force One late on Sunday, he said that while he is aware of the market sell-off and doesn’t “want anything to go down,” he will not ease on the tariffs.

“Sometimes you have to take medicine to fix something,” he stated. “What’s gonna happen with the market I can’t tell you… but I do wanna solve the deficit problem that we have with China, with the EU, and other nations. And they’re gonna have to do that.”

For more stories on economy & finance visit RT's business section

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Brewers are asking Brussels to defend them from dramatic new US import taxes, the newspaper has reported

A trade group representing EU brewers has warned that a 25% tariff on imports of beer to the US may force companies to shut down and leave tens of thousands of people out of work, the Financial Times reported on Saturday.

Earlier this week, the US Commerce Department added beer and empty aluminum cans to a list of derivative products subject to its tariffs on aluminum.

Brewers across the EU are reportedly confused about whether the new tariff applies to all beer or only to products imported in aluminum cans.

“We are calling on the [European] commission to use all diplomatic channels and whether through negotiation or retaliation, find a way to de-escalate this tariff in which we have become a collateral victim,” Julia Leferman, secretary-general of Brewers of Europe told FT.

The group, which represents major producers such as InBev, Heineken and Carlsberg, emphasized that the EU’s directorate general for trade had contacted US officials, but had not yet received clarity on the scope of the tariffs.

READ MORE: Trump says his tariff policies ‘will never change’

Brewers of Europe told the newspaper that local companies exported €870 million ($953 million) worth of beer to the US last year, and stressed that a loss of that business could eliminate 100,000 out of two million jobs in the industry.

As part of a historic set of new tariffs, Trump announced 10% minimum duties on all imports and additional “reciprocal” tariffs on dozens of countries he said had an unfair trade imbalance with the US. EU exports were hit with a higher 20% rate. The president argued that many nations were “ripping off” America through “harmful policies like currency manipulation and exorbitant value-added taxes.”

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Sweeping tariffs on the majority of US trading partners will “likely push” the global economy into recession, according to the investment bank

JPMorgan has raised the probability of a global recession to 60% in the wake of US President Donald Trump’s announcement of sweeping new tariffs, which have unsettled financial markets and heightened concerns about a global trade war.

“The risk of recession in the global economy this year is raised to 60%, up from 40%,” JPMorgan chief economist Bruce Kasman wrote in a note to clients titled “There will be blood,” as quoted by Bloomberg.

Kasman also called the tariffs the largest tax hike on US households and businesses since 1968 and warned that the consequences could be far-reaching. “The effect of this tax hike is likely to be magnified – through retaliation, a slide in US business sentiment, and supply chain disruptions,” he added.

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The US dollar index plunged 2.16% in premarket trading on Thursday, falling to its lowest level since October. The declines come in the wake of Trump’s decision to impose the tariffs, ranging from 10% to 50%, on a broad range of imports from dozens of countries. Heightening fears of a global trade war have reportedly spurred investors to seek safe-haven assets.

Kasman explained that though “we are not making immediate changes to our forecasts,” full implementation of announced policies could be seen as “a substantial macroeconomic shock.”
“We thus emphasize that these policies, if sustained, would likely push the US and possibly global economy into recession this year,” he said.

Goldman Sachs has also revised its outlook, increasing the probability of a US recession in 2025 from 20% to 35%, citing new US policies.

Earlier this week, Deutsche Bank warned of a potential dollar crisis due to the coming tariffs.

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The Russian capital has climbed past Hong Kong with 90 ultrawealthy residents, according to a Forbes report

Moscow has jumped to second place among the world’s top cities for billionaires, after adding new ultrawealthy residents over the past year, according to the Forbes World’s Billionaires List. The Russian capital’s billionaires now hold a combined fortune of $409 billion.

The report, issued this week, said the growth in billionaire residents pushed Moscow ahead of Hong Kong, which tied for the No. 2 spot last year.

Moscow added the most billionaires this year, up by 16 to 90, including 11 newcomers, while the combined wealth of the city’s superwealthy rose by $31 billion over the past year.

Oil magnate Vagit Alekperov, with an estimated fortune of $28.7 billion, remains Moscow’s leading billionaire, with more than half of his wealth coming from his stake in oil company Lukoil, Forbes said.

New York City retained its title as the top city for billionaires for the fourth consecutive year, home to 123 billionaires holding a combined fortune of $759 billion.

Hong Kong, now ranked third, counted 72 billionaires worth a total of $309 billion after losing two billionaires from its 2024 tally. The city remains the top billionaire hub in Asia.

London moved up two spots, adding nine billionaires, including seven newcomers. The UK capital is home to 71 billionaires, whose total net worth is estimated at $355 billion.

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Beijing and Mumbai came in as the fifth and sixth most popular resident cities for the world’s superwealthy, with 68 and 67 such individuals respectively.

Singapore ranked seventh with 60 billionaires, while Shanghai and San Francisco tied for eighth with 58 each. Los Angeles rounded out the global top ten with 56 billionaires.

According to Forbes, the world’s 3,028 billionaires are spread across more than 800 cities, though nearly a quarter of them, worth a combined $3.3 trillion, have chosen to make one of the top ten cities their home.

The outlet also noted it was unable to determine the primary residence of 40 billionaires this year.

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With bank deposit rates up, consumers are choosing saving over spending, the head of retailer DNS has said

Russia’s home appliance and electronics market is facing its sharpest downturn in decades as consumers opt to save rather than spend, the head of major retail chain DNS has said.

Dmitry Alekseev made the comments on Thursday, writing on Telegram that current conditions are unprecedented in his 30 years in the industry. Preliminary estimates suggest first-quarter sales may have dropped by around 15%, he said.

“We’ve seen the market dropping in units, we’ve seen it fall in dollars or in real rubles adjusted for inflation,” Alekseev wrote. “But I don’t recall a time when it was simply falling in rubles – not like this.”

He wrote the sector is now losing out to banks, with high interest rates encouraging Russians to move cash into deposits rather than spend on big-ticket items.

Traditionally, around 30% of purchases in the segment were made on credit, Alekseev noted. That share has now fallen below 5%, as access to loans has become increasingly limited.

Statistics show consumer lending in Russia dropped by 21% in 2024 compared to the previous year, as banks tightened approval criteria. The central bank’s stricter regulations – including lending caps aimed at curbing household debt – were the main factor behind the decline in late 2024 and early 2025.

Alekseev suggested the drop in demand was driven not only by rising prices or the shift to online marketplaces. “Consumers now have a clear alternative – they can either spend the money or put it in the bank and earn 2% a month,” he said.

READ MORE: Russians spent record amount on cars in 2024 – data

DNS is a Russian retail chain specializing in electronics and home appliances, founded in 1998. It also produces goods under several in-house brands. The company says it operates more than 2,000 stores across Russia, with a presence in several CIS countries.

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Deutsche Bank has raised concerns over a possible erosion of trust in the US currency amid escalating trade tensions

A deepening crisis of confidence in the US dollar may be unfolding, Deutsche Bank has warned. The caution follows US President Donald Trump’s announcement of sweeping new tariffs, which have rattled financial markets and intensified fears of a global trade war.

In a note to clients on Thursday cited by Reuters, George Saravelos, global head of foreign exchange research at the German financial giant, said that major changes in capital flows could destabilize currency markets.

“Our overall message is that there is a risk that major shifts in capital flow allocations take over from currency fundamentals and that FX [foreign exchange market] moves become disorderly,” he wrote.

The US dollar has dropped sharply this week, falling more than 1.5% against both the euro and the Japanese yen and over 1% against the British pound. The declines come in the wake of Trump’s decision to impose tariffs, ranging from 10% to 50%, on a broad range of imports from dozens of countries. Heightening fears of a global trade war have reportedly spurred investors to seek safe-haven assets.

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Saravelos cautioned that a prolonged erosion of trust in the dollar could have far-reaching consequences, particularly for the eurozone, posing challenges to the European Central Bank (ECB).

“The last thing the ECB wants is an externally imposed disinflationary shock from a loss in dollar confidence and a sharp appreciation in the euro on top of tariffs,” he said.

The ECB has reportedly voiced concerns that the US trade measures could disrupt global economic cooperation, destabilize inflation expectations, and force monetary policy recalibration.

The fallout from the tariffs has been swift. Stock markets have tumbled worldwide, oil prices have dropped, and bond yields have retreated as investors brace for slower economic growth. Meanwhile, assets seen as safe havens—including gold, German bunds, and the Swiss franc—have all seen an increase in demand.

Other financial institutions, including JPMorgan and Fitch, have issued similar warnings, the Financial Times and Reuters report, estimating that the tariffs could reduce US GDP growth by up to 1.5% and potentially tip other major economies into recession.

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Secretary Scott Bessent has urged American trading partners not to retaliate against Washington’s new import taxes

US Treasury Secretary Scott Bessent has urged Washington’s trading partners not to retaliate against President Donald Trump’s latest set of tariffs.

Trump on Wednesday announced reciprocal tariffs on exports from countries around the world, part of what he has branded his ‘Liberation Day’ plan, raising fears of a global trade war.

Speaking to Fox News shortly after Trump’s announcement, Bessent said that the levies aimed to lay the groundwork for long-term economic growth.

“My advice to every country right now is do not retaliate,” Bessent said. “Sit back, take it in, let’s see how it goes.”

He warned that retaliation would lead to escalation.

Trump has framed his ‘Liberation Day’ tariffs as a way to restore balance to global trade. He has long accused foreign countries of abusing the openness of the US market and “ripping off” the American people.

The US will impose a 10% baseline tariff on all imports starting April 5. Individual, reciprocal tariffs will take effect on April 9. A separate 25% tariff on cars and trucks comes into force on April 3, with the same rate on auto parts to follow on May 3.

Countries targeted with reciprocal tariffs include China (34%), India (26%), Japan (24%), South Korea (25%) and South Africa (30%). Trump also imposed 20% duties on EU goods, calling the bloc’s members “very tough traders.”

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World leaders have condemned the sweeping measures. European Commission President Ursula von der Leyen on Thursday called them a “major blow to the world economy.”

“The consequences will be dire for millions of people around the globe,” she said, adding that while the EU is ready to negotiate, it is also prepared to respond with countermeasures.

German Chancellor Olaf Scholz echoed the criticism, calling Trump’s decision “fundamentally wrong” and “an attack on a trade system.”

“We want cooperation, not confrontation, and will defend our interests,” Scholz said.

The Chinese Commerce Ministry urged the US to “immediately” lift unilateral tariffs and properly resolve trade disputes “through dialogue on an equal footing.”

“There are no winners in trade wars, and is no way out for protectionism,” the ministry said.

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The White House’s Liberation Day plan sets out broad, country-specific duties on US trading partners

US President Donald Trump announced a sweeping new round of tariffs on Wednesday, as part of what he has branded his ‘Liberation Day’ plan, raising concerns about a potential global trade war.

Washington is introducing customs duties on all countries based on the principle of reciprocity, Trump has announced, calling it a day of economic independence for the United States.

The president confirmed that the 25% global tariffs on cars and trucks will take effect as scheduled on Thursday, while duties on imported automotive parts are set to take effect on May 3.

In his speech at the White House Rose Garden, Trump complained that “none of our companies are allowed to go into other countries.”

“That’s why, effective at midnight, we will impose a 25% tariff on all foreign-made automobiles,” he declared.

Trump claimed the reciprocal tariffs would usher in a “golden age” for the country, adding that “jobs and factories will come roaring back.”

According to a chart presented by Trump during his speech, the new tariffs will range from 10% to 50%, depending on the country. Washington will impose a 20% tariff on the EU, 34% levies on China, and 24% duties on Japan, among others.

pic.twitter.com/v5WMU5wofc

— Rapid Response 47 (@RapidResponse47) April 2, 2025

Trump said Washington would implement “kind” reciprocal tariffs on all countries amounting to “approximately half” of what those nations charge the US.

“We will supercharge our domestic industrial base” and “break down” trade barriers abroad, he vowed, noting that ultimately this would entail lower prices for consumers.

“Our country and its taxpayers have been ripped off for more than 50 years, but it is NOT going to happen anymore,” Trump concluded, adding “We are finally putting America first.”

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The number of individuals on the list continues to grow despite Western sanctions

The number of Russian billionaires has grown over the past year despite Western sanctions aimed at destabilizing the country’s economy, according to the Forbes World’s Billionaires List. The annual ranking added 15 new Russian names in 2025 to reach a record total of 146.

Russia’s new billionaires come from different backgrounds and include self-made entrepreneurs and heirs. The industries represented span coal, finance, IT, pharmaceuticals, oil and gas, agriculture, food production, housing, trade, transport and power.

Among the newcomers in the ranking, Indian-born Vikram Punia, founder of the pharmaceutical firm Pharmasyntez, was the wealthiest, debuting with a fortune of $2.1 billion. Others included Lyudmila Kogan ($1.3 billion), widow of banker Vladimir Kogan and inheritor of a majority stake in Uralsib Bank; twin brothers Alexander and Viktor Linnik ($1.3 billion each), the founders of meat producer Miratorg; and Boris Nuraliev, founder of the software company 1C ($1.3 billion).

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Russia ranked fifth globally in new billionaires. The US topped the list with 103 new names, including Marilyn Simons ($31 billion), widow of hedge fund pioneer Jim Simons, and Lyndal Stephens Greth ($25.8 billion), daughter of oil magnate Autry Stephens.

Germany was second with 37 newcomers, including the youngest billionaire on the list, 19-year-old Johannes von Baumbach ($5.4 billion). China and Hong Kong followed with 32, and India ranked fourth with 17.

Nearly 70% of the world’s newest billionaires, or 196 of them, are self-made, according to Forbes. Technology and AI topped the list of industries for new billionaires, producing 46, including Chinese investor Hao Tang ($4.3 billion) and American startup founders Ben Lamm ($3.7 billion) and Dario Amodei ($1.2 billion). The finance sector followed with 41 newcomers, while healthcare ranked third with 40.

For more stories on economy & finance visit RT's business section

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The expectation of sweeping levies is creating uncertainty but unlikely to trigger a recession, the financial body’s managing director has said

US President Donald Trump’s push for tariffs is fueling significant uncertainty and undermining confidence about the global economy, but it’s unlikely to cause a recession in the near future, the head of the IMF has told Reuters.

Trump is expected to announce “reciprocal tariffs” on Wednesday, targeting countries that levy tariffs on American products or implement trade practices considered unfair by the White House. The swathe of country-specific tariffs will target all US trading partners, including the EU, China and Canada.

Trump has referred to the roll-out as “Liberation Day”.

Trump imposed multiple tariffs since his return to the White House in January, including broad levies on China, penalties on non-compliant Canadian and Mexican goods, steel and aluminum, and most recently, foreign cars and key parts.

In an interview with Reuters on Monday IMF Managing Director Kristalina Georgieva said that the IMF is expected to slightly downgrade its global economic forecast in the upcoming World Economic Outlook update, but a recession is not in sight.

“What we see in the high-frequency indicators is indeed indicating that consumer confidence, investor confidence are weakening somewhat, and we know that that then translates into an impact on growth prospects,” Georgieva said.

Her comment follows a warning from Goldman Sachs on Sunday that the US economy faces a growing risk of recession as mounting tariffs threaten to dampen growth, drive up inflation, and raise unemployment. The firm raised its 12-month recession probability to 35%, up from a previous estimate of 20%.

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Investor confidence has been shaken by the unpredictable rollout of new tariffs, leading to a nearly 10% decline in major US stock indexes since mid-February, as concerns mount that the levies could stall economic growth or push the economy into a recession.

Georgieva, however, noted that the IMF has not yet observed “a dramatic impact” from the tariffs imposed or threatened by Trump since his return to the White House, and rather expects a small downward “correction.”

“The sooner there is more clarity, the better, because uncertainty, our research shows, the longer it goes, the more it may negatively impact growth,” she said.

In January, the IMF slightly raised its global growth forecast for 2025 to 3.3%, up from 3.2% in its October projection, with a substantial half-point upgrade to the US outlook – now at 2.7% - driving much of the increase.

Georgieva noted that global trade continues to expand despite a rise in protectionist measures worldwide, which have reshaped trading patterns and posed challenges to globalization.

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The Wall Street bank has raised the likelihood of a downturn to 35% ahead of the Trump administration’s massive tariff roll-out

The US economy is facing an increasing risk of a recession as escalating tariffs threaten to slow growth, push inflation higher, and increase unemployment, Goldman Sachs has warned.

On Sunday, the Wall Street bank raised its estimate of a recession over the next 12 months to 35%, up from its previous projection of 20%.

US President Donald Trump is expected to introduce a massive plan of country-specific tariffs across all American trading partners on Wednesday, calling the upcoming roll-out “Liberation Day.” Trump has already imposed tariffs on aluminum, steel, and automobiles, as well as raising tariffs on all imports from China. He also announced last week that a 25% tariff on cars imported to the US will take effect the following day.

“Higher tariffs are likely to boost consumer crisis,” Goldman Sachs warned, adding that rising prices will eat into inflation-adjusted income. It raised its end-of-2025 inflation forecast to 3.5%, up from 2.8% last month, increased its unemployment prediction to 4.5%, the highest since October 2021, and lowered its GDP growth forecast to 1%, the weakest since 2020.

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Overall, Goldman now assigns a 35% probability of a recession within the next 12 months, up from 20% in its previous outlook.

While some critics warn that Trump’s tariff strategy risks a global trade war, provoking retaliation by major trading partners such as China, Canada and the EU, he has insisted that the tariffs are needed because the American economy had been “ripped off by every country in the world.”

The EU is likely to be hit harder than the US, Goldman warned, projecting that it could slip into a technical recession later this year. “We estimate that our new tariff assumptions will lower euro area real GDP by an additional 0.25% compared to our previous baseline, for a total hit to the level of GDP of 0.7% compared to a no-tariff counterfactual by end-2026.”

Many EU companies, including German car manufacturers and French luxury goods companies and wine, champagne, and spirits makers, rely on exports to the US for up to 20% of their income and are likely to be hit hard by the tariffs.

The EU has vowed to provide a “timely, robust and calibrated” response to Washington’s plans, which experts warn could suppress economic output, push prices higher, and escalate into a full-blown trade war.

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Trade barriers could reportedly slash the size of the British economy by 1% and lead to tax hikes

The UK is preparing for a new wave of US trade tariffs that could be imposed this week, several media outlets reported on Monday, citing Downing Street.

Few details about the potential tariffs have been made public so far, but they could cut the size of the British economy by 1%, Reuters has reported, citing estimates by Britain's Office for Budget Responsibility. A tax hike is also possible in the fall because of the new trade restrictions, according to The Guardian.

US President Donald Trump is expected to announce the new measures on Wednesday as part of what he calls “Liberation Day.” The Trump administration maintains it seeks to slash the $1.2 trillion trade deficit by raising tariffs on global goods and counteracting non-tariff barriers created by other nations.

“We have been actively preparing for all eventualities ahead of the expected announcement from President Trump this week, which (we) would expect the UK to be impacted alongside other countries,” a spokesman for the British prime minister, Keir Starmer, told journalists on Monday.

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London is currently seeking to strike a trade deal with Washington, which would exempt it from further rounds of trade barriers but the agreement is unlikely to be reached in the coming days, The Guardian reported, citing sources.

“This is an unpredictable situation and an unpredictable administration,” a British official told the paper. “We’re having to plan for every scenario.” People familiar with the matter also told the media outlet that London would not immediately respond to the US tariffs in order not to jeopardize the talks that are expected to continue regardless of any new tariffs imposed.

Talks between London and Washington would “continue at pace this week,” Starmer said following a phone call with Trump on Sunday night. The UK prime minister called it a part of “productive negotiations,” adding that the sides agreed to “stay in touch” in the coming days.

Last week, Trump announced his plans to introduce a 25% tariff on car imports that would hit British automakers such as Bentley and Aston Martin. A 25% tariff on steel imports that has already been imposed by the US president has prompted the UK’s sole remaining producer of virgin steel to consider closing its only remaining plant in the country.

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Eric and Donald Trump Jr. have partnered with a cryptocurrency firm to start a major US-based Bitcoin-mining company

US President Donald Trump’s two oldest sons are investing in a major Bitcoin-mining company, the Wall Street Journal reported on Monday.

The Trumps have increasingly aligned themselves with the crypto industry through new ventures, investments, and public endorsements in recent months.

According to the WSJ, Eric Trump and Donald Trump Jr. plan to merge their company, American Data Centers, with a new mining venture called American Bitcoin, which is majority-owned by Hut 8, a publicly traded crypto infrastructure company.

The deal will reportedly give the Trump brothers a 20% stake in the combined entity.

Eric, who will serve as American Bitcoin’s chief strategy officer, told the WSJ: “We are a hard-asset family,” adding, “My entire life has been spent building things, and I don’t think there is ever a better hedge against all of that than the true digital assets.”

Miami-based Hut 8 will transfer nearly 61,000 of its specialized mining machines to American Bitcoin in exchange for an 80% stake in the new company, according to the report. Hut 8 said in a press release on Monday that no cash changed hands in the deal.

American Bitcoin aims to become the world’s largest Bitcoin miner and build a strategic Bitcoin reserve, Hut 8 said.

Executives behind the venture said the plans are not connected to the US strategic crypto reserve established by President Trump earlier in March by executive order.

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Once a crypto critic, Donald Trump changed his position during the 2024 presidential campaign, attracting significant industry support. Since returning to the White House, he has pledged to make the US the “crypto capital of the world” and to serve as a “crypto president.”

The administration of former President Joe Biden took a more cautious approach to digital assets, supporting stricter regulations and greater oversight to curb fraud and money laundering.

In recent months, the Trump family launched a decentralized finance project – World Liberty Financial – and said their social media company would invest in Bitcoin and other digital assets. They also announced plans for a dollar-backed stablecoin.

Some crypto industry figures have reportedly expressed concern that the Trumps could undermine US market credibility after launching highly volatile meme coins featuring the president and his wife Melania.

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The billionaire’s xAI artificial intelligence startup has acquired the social media platform

Tech billionaire Elon Musk has announced that his artificial intelligence startup, xAI, has acquired the social media platform X, which he also controls. The acquisition was confirmed in a Friday post on X, where Musk stated, “@xAI has acquired @X in an all-stock transaction.”

“Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at unprecedented speed and scale,” the tech mogul said. He described X as “the digital town square where more than 600M active users go to find the real-time source of ground truth.”

In late 2022, Musk acquired Twitter, now known as X. Following his takeover, he implemented cost-cutting measures, including far-reaching staff cuts and the renegotiations of contracts, while also relaxing some content restrictions and reinstating certain banned accounts.

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Musk noted that X has been transformed into one of the most efficient companies globally, highlighting its potential for scalable growth. He has stated that “xAI and X’s futures are intertwined,” emphasizing the advantages of combining their resources: “Today, we officially take the step to combine the data, models, compute, distribution and talent.”

AI development is one of the priorities of the government of US President Donald Trump, where Musk leads the Department of Government Efficiency (DOGE). According to analysts, the billionaire has been focused on establishing himself as a leader in the AI industry.

Earlier this year, he attempted to lead a group of investors to purchase OpenAI, the creator of ChatGPT, for nearly $100 billion. The company’s CEO Sam Altman, however, rejected the offer. Musk had co-founded OpenAI in 2015 but departed before it gained significant traction, and subsequently launched xAI in 2023.

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The EU should put its “entire toolbox on the table” in response to new US tariffs, Annalena Baerbock has said

German Foreign Minister Annalena Baerbock has proposed introducing a fee on iPhone software updates as a response to new US tariffs on EU goods, according to the newspaper Der Tagesspiegel.

The proposal follows an announcement by US President Donald Trump this week of an additional 25% tariff on hundreds of billions of dollars’ worth of imported cars and auto parts from the EU, expected to take effect next week. Trump warned of further measures if the bloc responded with its own levies.

Speaking at the Berlin European Conference on Thursday, Baerbock cited the EU’s Digital Services Act (DSA), adopted in 2022, which includes mechanisms for responding to external trade pressure.

“If others … propose a 25% tariff, then we can put our entire toolbox on the table,” Baerbock said.

She suggested one option could be a levy on digital services: “How often do we update our iPhone? Add ten cents to it – that would bring a lot of money for Europe, though others might not like [it] so much.”

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The report, however, questioned whether European consumers – who might ultimately bear the cost – would support the German foreign minister’s proposal.

According to German daily NOZ, citing data from Statista on Thursday, there are approximately 165 million iPhone users in the EU. With iPhones typically receiving six to ten software updates per year, a €0.10 levy per update could generate around €165 million ($178 million) annually. Apple reported a global net profit of $36.3 billion in the first fiscal quarter of 2025, according to company filings.

The US has long accused the EU of unfair trade practices, including high tariffs on American goods and regulatory hurdles affecting American companies.

In February, Trump said he would impose 25% levies on all imports from the EU, claiming the bloc was created to “screw” America.

The latest tariffs could hit the German auto industry hardest, with carmakers like Volkswagen and Mercedes-Benz facing significant challenges in the US market, analysts say. Rising production costs and factory closures have already put pressure on parts of Germany’s manufacturing sector.

Trump’s 25% tariff hike on steel and aluminum supplies from the bloc took effect on March 12, following the expiration of previous exemptions, duty-free quotas, and product exclusions. In response, the EU announced it would impose counter-tariffs on €26 billion worth of US goods beginning in April.

A similar trade dispute unfolded during Trump’s first term, when he slapped tariffs of 25% on European steel and 10% on aluminum, prompting retaliatory measures from Brussels. The measures impacted more than $10 billion worth of transatlantic trade.

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The US president has warned Ottawa and Brussels not to provoke their “best friend” by retaliating with their own duties

US President Donald Trump has threatened to impose additional tariffs on the European Union and Canada if they collaborate to “do economic harm” to the United States.

Trump’s warning comes after the newly-installed Canadian prime minister, Mark Carney, said the old relationship with Washington was “over” and that it was important for Canada to strengthen ties with “reliable partners” in Europe.

“If the European Union works with Canada in order to do economic harm to the USA, large scale Tariffs, far larger than currently planned, will be placed on them both in order to protect the best friend that each of those two countries has ever had!” Trump wrote on his Truth Social platform on Thursday.

On Wednesday, Trump announced plans to impose an additional 25% tariff on hundreds of billions of dollars’ worth of imported cars and auto parts beginning next week. The EU’s biggest economies and Canada have threatened to retaliate.

In early March, the US imposed a 25% tariff on most Canadian goods, citing a trade imbalance and drug trafficking concerns.

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In February, Trump announced plans to introduce a 25% levy on goods imported from the EU, which is set to come into force next week. Both Ottawa and Brussels have responded with their own duties.

The escalating dispute with Canada follows a spate of comments from Trump claiming that the country would be better off as the 51st state of the US. Canada has categorically rejected becoming part of the US.

Washington has long accused the European Union of unfair trade practices, including high tariffs on American goods and restrictive regulatory barriers that disadvantage US companies.

READ MORE: Meloni backs Vance’s attack on EU

The Ukraine conflict has also driven a wedge between Brussels and the new administration in Washington. Trump has adopted a more conciliatory approach toward Russia and has initiated peace talks, while the EU has insisted on continuing the supply of lethal aid to Kiev and has considered deploying troops.

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LG Electronics suspended production at its manufacturing facility near Moscow in March 2022 due to Western sanctions

South Korea’s LG Electronics has confirmed it has carried out a test restart of its Russian plant, which has been idle since operations were suspended in 2022 due to Ukraine conflict-related Western sanctions.

LG halted all deliveries to Russia and suspended operations at its plant in Ruza, near Moscow, shortly after the escalation of the conflict.

On Friday, South Korean media reported a partial resumption of operations at the facility, which previously produced washing machines and refrigerators.

The move is aimed at “preventing equipment corrosion,” an LG official told RIA Novosti on Friday, adding that only existing on-site materials are currently being used.

LG CEO Cho Joo-wan, quoted by Korea Times on Friday, said the company remains “cautious, as the conflict is not yet over,” and is closely monitoring the situation. Full operation could resume once sanctions are lifted, he added.

Several major Korean firms, including LG, Hyundai Motor Group and Samsung, are reportedly evaluating a return to the Russian market amid ongoing Ukraine peace negotiations.

An LG representative noted the company’s situation differs from Hyundai’s, the carmaker announced plans in 2023 to sell its Russian plant, and completed its exit from the country under pressure from Western sanctions.

President Vladimir Putin has repeatedly said sanctions had inadvertently strengthened Russia’s economic and technological base and that any potential return of foreign companies must be carefully managed to protect domestic companies.

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Russia “never closed its doors or expelled anyone,” Putin said recently, adding that confidential talks with some foreign businesses are already underway. However, he noted that future decisions will depend on market conditions, and no special incentives will be granted if sectors are already occupied.

According to Prime Minister Mikhail Mishustin, a special government commission will assess each company’s case individually.

This week, Italian appliance maker Ariston announced it would resume operations in Russia after Putin signed a decree removing its Russian unit from a list of companies under temporary state control.

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Multinationals are reportedly looking to re-access the country’s market amid Ukraine ceasefire talks

Foreign firms that exited Russia due to sanctions linked to the Ukraine conflict are now seeking to return, according to President Vladimir Putin’s special economic representative, Kirill Dmitriev.

Dmitriev, who is also the CEO of the Russian Direct Investment Fund (RDIF), was responding to Korea Times report on Friday that South Korean companies are looking to resume operations in Russia, given US-led ceasefire talks between Moscow and Kiev.

“Global companies are lining up to return to Russia, signaling renewed confidence and fresh opportunities in one of the world’s largest markets,” Dmitriev wrote on X on Friday.

More than 1,000 Western firms – from well-known retail firms to car giants – have exited the Russian market in the past three years. But as Ukraine conflict ceasefire talks gain momentum, major South Korean companies are reportedly stepping up feasibility studies on resuming operations in Russia. The push reflects Russia’s strategic importance for the country as a market, particularly in light of mounting tariff pressure from the US, the outlet said.

LG Electronics is reportedly among the first, and recently partially resumed operations at its home appliance plant in Moscow, which produced washing machines and refrigerators, the outlet said citing industry sources.

“The move is aimed at preventing deterioration of production facilities that have been idle,” an LG official told the Korea Times.

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Hyundai Motor Group, which along with Kia held the top two spots among car brands in Russia in 2021, is also closely assessing the prospect of re-entering the Russian market. The group sold its St. Petersburg plant for just 10,000 rubles ($120) with a two-year buyback option 2023. It means the group must make a decision on restarting production at the facility before the end of 2025.

Earlier this week, Italian household equipment manufacturer Ariston announced its return to Russia after exiting the market in 2022.

The development seems to reflect an emerging trend of potential comebacks and buybacks by major foreign brands amid a US pivot on relations with Russia.

Russian Prime Minister Mikhail Mishustin stated on Wednesday that each company’s case will be evaluated on an individual basis. Foreign firms that exited Russia “under government pressure” but maintained “jobs, contacts, and technologies,” along with a buy-back option, could be permitted to return, he said.

Mishustin added that companies possessing unique expertise would also be welcomed— so long as they adhere to localization and investment conditions.

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Moscow has asked Washington to ease its sanctions as a step towards settling the Ukraine conflict

US Treasury Secretary Scott Bessent has confirmed that all options remain on the table as Washington considers lifting certain sanctions against Moscow, including the possible reconnection of Russian banks to the Belgium-based SWIFT network.

The US and EU cut off major Russian banks from the SWIFT messaging system as part of a decade-long sanctions campaign, which was significantly expanded following the escalation of the Ukraine conflict in 2022. As part of the Black Sea ceasefire initiative discussed in Saudi Arabia earlier this week, Moscow requested that its Agricultural Bank (Rosselkhozbank) and other institutions involved in food and fertilizer sales be reconnected to the international payment system.

“There would be a long discussion about many things in terms of the proper way to bring Russia back into the international system,” Bessent told Fox News on Wednesday, emphasizing that it was “premature to discuss the terms of a deal before we have a deal.”

“I think everything is on the table,” he added, noting that “it will be determined by the Russian leadership’s next moves whether the sanctions go up or down, and President Trump, I think, would not hesitate to raise the sanctions if it gives him a negotiating advantage.”

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Reconnecting Rosselkhozbank to SWIFT was part of the original Black Sea Grain Initiative, brokered in July 2022 by the UN and Türkiye. A Western failure to deliver on that commitment, along with Kiev’s alleged misuse of the arrangement for military purposes, prompted Moscow to reject the renewal of the agreement in 2023.

The US and Russia agreed to revive the defunct Black Sea deal following 12 hours of talks in Saudi Arabia on Monday. President Donald Trump confirmed on Tuesday that his administration is considering lifting some sanctions on Moscow. “There are about five or six conditions. We’re looking at all of them,” he said.

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The Brussels-based SWIFT system is incorporated under Belgian law and must comply with EU regulations and restrictions. European Commission spokeswoman Anitta Hipper stated on Wednesday that the bloc will not amend or lift its sanctions until Russia “unconditionally” withdraws all forces from the “entire territory of Ukraine.”

Russian President Vladimir Putin said last week that Western sanctions are not a temporary measure but a long-term tool used to apply strategic pressure on Moscow, and that Russia’s rivals will always seek out ways to weaken the country.

According to Putin, a total of 28,595 sanctions have been imposed on Russian individuals and entities in recent years – more than the total number imposed on all other countries combined – which have only strengthened the national economy by encouraging self-reliance.

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A new approach to managing the shipping artery is expected to boost freight turnover through Russian waters

The development of the Northern Sea Route (NSR) in Russia’s Arctic territory will be at the center of discussions on Wednesday at the International Arctic Forum. The two-day event is taking place in Murmansk – the world’s largest city north of the Arctic Circle and home to a strategic Russian port.

The forum, organized by the Russian government and national nuclear energy giant Rosatom, is a major platform for discussing the development of the Arctic. The region has drawn increasing global attention due to its vast untapped energy and mineral resources, as well as its strategic trade routes.

Russia has been developing the NSR, a transport corridor that runs through its Arctic and Far East regions and serves as the shortest shipping link between Europe and the Asia-Pacific. The NSR is expected to become a major trade route for goods shipped between the continents and could drastically reduce transportation times compared to traditional pathways through the Suez or Panama canals.

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Forum participants will examine plans to modernize and expand the NSR, with a focus on boosting its efficiency and strengthening partnerships between Russia and countries in Southeast Asia and the Persian Gulf. The discussion will also seek ways to keep the route operational year-round, improve logistics along the corridor, and enhance Arctic infrastructure.

The NSR in Russia’s exclusive economic zone within Arctic waters has been experiencing an unprecedented surge in development over the past decade. Moscow has extensively modernized the route, with significant investment from India and China, which hold stakes in several Arctic energy projects.

Russian President Vladimir Putin last year outlined the development of the NSR as a strategic priority for the country, pledging to ensure all-year navigation on the Arctic route. He has also invited foreign partners to use the shipping artery.

Freight traffic via the route has been growing steadily. Russian authorities expect annual maritime cargo flows along the NSR to reach 200 million tons by 2030. They plan to boost cargo throughput at northern seaports and to increase the country’s Arctic fleet.

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American fiscal strength is on course for continued multi-year decline, the rating agency has said

Ratings agency Moody’s has sounded the alarm on the United States fiscal health, warning of a continued decline due to widening budget deficits and increasing concerns over debt affordability.

The warning comes as the national debt surpasses $36 trillion and annual deficits exceed $1.7 trillion, raising concerns about the government’s ability to manage its financial obligations.

”[US] fiscal strength is on course for a continued multiyear decline”, having already “deteriorated further” since Moody’s assigned a negative outlook to America’s top-notch AAA credit rating in November 2023, the agency said in a report on Tuesday, as cited by Financial Times.

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US President Donald Trump has advocated measures aimed at stabilizing the nation’s finances, including implementing significant tariffs and proposing tax cuts intended to stimulate economic growth. However, Moody’s has cautioned that extending substantial tax cuts without implementing significant spending reductions could exacerbate the country’s fiscal challenges.

”We see diminished prospects that these strengths will continue to offset widening fiscal deficits and declining debt affordability,” it said, according to Reuters.

Republicans are pushing for a $4.5 trillion extension of tax cuts, which would in turn require significant spending reductions, something that may conflict with Trump’s commitment to protect social programs, the agency noted.

The Department of Government Efficiency (DOGE), led by Elon Musk, tasked with reducing wasteful spending, claims to have achieved $115 billion in savings nationwide. However, according to Moody’s, such cuts are relatively minor compared to mandatory spending obligations.

READ MORE: US to review ‘lazy’ Biden-era sanctions – Treasury secretary

The agency projects that, without effective policy interventions, America’s debt-to-GDP ratio could rise from the current 124% to approximately 130% by 2035, with interest payments consuming about 30% of federal revenue.

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Wizz Air has outlined a strategy to resume operations within weeks of a peace agreement

Hungarian low-cost carrier Wizz Air has announced plans to swiftly resume flights to Ukraine once a ceasefire with Russia is established.

Speaking at the Logistics as a Driver of Economic Growth conference on Tuesday, CEO Jozsef Varadi spoke of the airline’s plans for Ukraine, emphasizing the potential of the country’s market.

“We have a firm plan for the restart of Ukraine, because I think it can happen any moment,” Varadi stated. “Once a ceasefire is announced, then we would look at our restart,” he added.

The European Union Aviation Safety Agency (EASA) estimates that reopening Ukrainian airspace could take six to eight weeks after a ceasefire is declared. The chief executive said the airline is preparing to align its operations with this timeline to ensure a prompt return. ?

According to Varandi, the carrier plans to restart operating bases in Kiev and Lviv, aiming to supply an annualized capacity of about 5 million seats a year to the Ukrainian market across 60 routes.

In 2021, the low-cost airline was third in the Ukrainian market with a 10% share, according to the Independent. Ukraine closed its airspace to civilian flights on February 24, 2022 when the conflict with Russia escalated, citing the high risk to flight safety due to the active fighting.

READ MORE: Russia proposes resuming direct flights with US

The optimism about a potential ceasefire comes amid a broader diplomatic push by Russia and the US to end the Ukraine conflict. Since taking office in January, US President Donald Trump has begun talks with Russian President Vladimir Putin and Ukraine’s Vladimir Zelensky about reaching a peace agreement. This has been followed by several rounds of negotiations between Russian and American officials.

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Moscow is seeking $1.6 billion in damages from Shell over the Sakhalin-2 LNG joint venture that the latter quit in 2022

Russia is seeking over $1.6 billion in damages from British energy giant Shell over a failed joint venture, the company revealed in its annual report published on Tuesday.

Shell walked away from the Sakhalin-2 liquefied natural gas (LNG) project, a major oil and gas development on Sakhalin Island in Russia’s Far East, in 2022, after the escalation of the Ukraine conflict and ensuing Western sanctions on Moscow.

The Russian Prosecutor General’s Office launched the legal action against eight Shell group units last October, although no details of the claim were made public at the time. Gazprom Export, the Russian Energy Ministry, the government of Sakhalin Region, as well as the companies Sakhalin Energy Investment and Sakhalin Energy were named as also being party to the claim.

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According to the London-based energy giant, Russia is seeking a declaration that Shell illegally abandoned its support for the project. It is also seeking “monetary relief” of approximately €1.5 billion from Shell Energy Europe Limited to Gazprom Export for “alleged unpaid gas deliveries in 2022,” and a declaration that Gazprom Export can take the 94 billion rubles ($1.1 billion) reserved in escrow for Shell as compensation for relinquishing its share in Sakhalin-2.

The company filed a postponement notice in January and a new hearing in the Moscow Arbitration Court is scheduled for April 14, the report added.

The energy giant noted that it was currently impossible to estimate “the magnitude and timing” of any possible obligations arising from the lawsuit.

“There remains a high degree of uncertainty regarding the ultimate outcomes, as well as the potential effect on future operations, earnings, cash flows and Shell’s financial condition,” it added.

In 2022, Russian President Vladimir Putin signed a decree transferring the assets of Sakhalin Energy, the former operator of Sakhalin-2, to a new Russia-based operator, Sakhalin Energy LLC. The government allowed foreign owners, which included Japanese companies Mitsui and Mitsubishi, to take a stake in the new operator proportionate to their previous holding.

READ MORE: Japan to retain oil and gas interests in Russia

The Japanese firms decided to retain their stakes, but Shell, which owned 27.5% minus one share in Sakhalin Energy, refused to join the new entity, prompting Moscow to sell off its stake to a Gazprom subsidiary for roughly $1 billion.

The funds remain frozen in Russia in a type of escrow account called Type C that was introduced in response to Western sanctions. The main purpose of such accounts was to prevent the movement of funds out of the country by entities from “unfriendly nations.”

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Cryptocurrencies are still “very volatile” and are used for shady transactions, Elvira Nabiullina has warned

The head of Russia’s central bank, Elvira Nabiullina, has called for settlements in cryptocurrencies to be banned in the country. Russia currently allows cryptocurrency mining and experimental foreign-trade settlements in crypto.

Speaking at a press conference on Friday, Nabiullina stated that cryptocurrencies are still “very volatile [financial] instruments often used for shady operations.” They should not be allowed to serve as a means of payment, she maintained.

Last year, Russian President Vladimir Putin raised the issue of regulating cryptocurrencies and digital assets, calling it a promising area, and urged for the creation of conditions for the circulation of digital assets, both domestically and with foreign partners.

In August 2024, Nabiullina said the Bank of Russia would conduct the first cross-border crypto payments by the end of that year as part of an experiment. On Friday, she said that any transactions in crypto outside of this special legal regime should be banned and those found in violation of the regulations should face legal penalties.

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However, she has expressed support for allowing cryptocurrencies to serve as an investment tool for certain qualified investors. These investments would be associated with elevated risks, Nabiullina warned, adding that the initial experimental format could allow for the development of future crypto investment regulations, as well as ensuring their transparency.

In August 2024, Russia enacted a law prohibiting the advertising of cryptocurrency to the general public and the promotion of goods or services facilitating digital currency transactions. The legislation also banned advertising digital currencies and services such as crypto exchanges or wallets. Violations can result in administrative penalties.

Cryptocurrency mining was legalized in Russia in 2024 but was also restricted in some regions until 2031 to avoid power shortages, due to its high energy consumption. In February, Russia blocked access to major cryptocurrency exchange aggregator BestChange.

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Kai-Fu Lee has cast doubt on the sustainability of OpenAI’s model compared to open-source DeepSeek

An artificial intelligence pioneer has questioned the sustainability of ChatGPT creator OpenAI, noting that Chinese rival DeepSeek has been trained at a fraction of the cost.

DeepSeek heated up an AI race between China and the US in January after launching an open-source version of its reasoning AI model, R1. Unlike its American rival ChatGPT, the Chinese bot is freely available without a subscription, which has helped it rapidly become the most downloaded app on Apple’s and Google’s stores.

“If you think about OpenAI’s $7 billion of operating costs in 2024, DeepSeek is probably operating with 2% of the operating expense,” Kai-Fu Lee, a writer, venture capitalist, and technology executive who has over 30 years’ experience in AI, said on Thursday in an interview with Bloomberg.

Lee is the founder of Sinovation Ventures, a venture capital firm focused on supporting Chinese startups in AI and technology, as well as establishing an AI institute which focuses on integrating new technology into traditional industries and developing AI-driven startups. He previously served as founding director of Microsoft Research Asia before working at Google and Apple.

“Is OpenAI’s model even sustainable?” the expert asked.

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Lee specified that OpenAI was spending $87 billion a year “making a massive loss.” He compared this to DeepSeek, which is offered to developers for free or at a fraction of the cost.

“So with that kind of formidable competitor, I think Sam Altman is probably not sleeping well,” he said, referring to the OpenAI CEO.

The venture investor and founder of 01.AI projected that only three AI models – DeepSeek, Alibaba Group Holding, and ByteDance – would survive China’s domestic shakeup triggered by the onset of DeepSeek. Lee added that xAI, OpenAI, Google, and Anthropic could lead the sector in the US.

He emphasized that pioneer models such as ChatGPT have been commoditized, making the business model of the US developer vulnerable to cheaper economics presented by open-source AI such as DeepSeek.

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Eurozone stability is under threat due to Berlin’s military spending boost and debt brake overhaul, Alice Weidel warns

Berlin’s move to overhaul its national debt rules in order to boost military spending has jeopardized the economic stability of the euro area, according to Alice Weidel, the co-leader of the Alternative for Germany (AfD) party. Her comments came shortly after the federal legislature approved the measure.

On Tuesday, the Bundestag backed an initiative allowing the federal government to unlock a record level of state borrowing for defense and infrastructure. The fiscal package was approved by 513 legislators, while 207 voted against it.

“This is a death blow for the euro, which in the coming years – and it is already beginning to do so – will devalue significantly,” Weidel told journalists after the “historic” vote, emphasizing that German lawmakers had approved “gigantic debt.”

The reform, which amends the nation’s constitutionally enshrined fiscal rules, will hit the country’s future generations the hardest, according to AfD’s co-leader, who also warned that “what is being done here is the final destruction of Germany’s financial stability.”

“We will lose our AAA rating, our top credit rating,” Weidel warned.

The world’s major credit agencies currently rank Germany’s long-term sovereign debt AAA, entailing the lowest expectation of risk.

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The reform package approved by the lower chamber implies the removal of federal fiscal restrictions in order to increase the special fund for the Bundeswehr, Germany’s armed forces.

If adopted, the amendments will allow spending exceeding 1% of the country’s gross domestic product (GDP) to be effectively exempt from the nation’s “debt brake” that was added to the constitution in 2009. The current rules normally limit federal budget deficits to no more than 0.35% of GDP.

In addition, the proposed reform stipulates the creation of a debt-financed and brake-exempted fund of €500 billion ($548 billion) earmarked for infrastructure and climate investments, with one-fifth of that funding to be committed to fighting climate change.

The reform package also needs to be approved by the Bundesrat, a body representing the country’s states, on Friday to become enshrined in Germany’s constitution.

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Finland cited regulatory barriers and limited supply in declining an American appeal

Finland has refused to export eggs to the US, citing regulatory hurdles and supply constraints, after the US Department of Agriculture (USDA) reached out to several EU producers amid skyrocketing domestic prices, local outlet Yle has reported.

The American market is experiencing a severe egg shortage due to a bird flu outbreak that has drastically reduced domestic production. Prices have surged by 200% from last year, reaching an all-time high of $8.41 per dozen, according to Bloomberg.

To stabilize the market, the USDA has appealed to several European countries, including Finland, Sweden, and Denmark, for imports. The Finnish Poultry Association confirmed that it had been contacted but stated that exports were not currently feasible.

“Launching exports is not a simple matter since there are no agreed rules in place,” the association’s executive director, Veera Lehtila, told Yle on Saturday. She explained that Finland lacks national approval to export egg products to the US, meaning any potential shipments would require extensive regulatory procedures.

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Lehtila also noted that Finland’s domestic supply is limited, making exports impractical.

“We have four million laying hens in total in Finland. The amount we could export would not solve their egg shortage,” she said, pointing out that the US culled five times as many birds due to bird flu in the last quarter alone.

An official response, drafted in coordination with the Finnish Food Authority, has already been sent to US authorities, according to Helsingin Sanomat.

The outbreak has severely impacted US poultry farms, particularly in major egg-producing states such as Iowa and Ohio. In response, the USDA announced plans to allocate up to $1 billion to combat the crisis and support affected farmers through biosecurity measures and compensation for lost flocks, according to Reuters.

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Europe is also facing egg shortages due to bird flu, with millions of chickens culled across the continent. One of Sweden’s largest egg producers, Kronagg, told Aftonbladet that it is unlikely to export to the US due to restrictions. The Danish Egg Association stated that while it would consider exports, there is hardly any surplus available.

Meanwhile, trade tensions between Washington and Brussels have escalated. US President Donald Trump has threatened a 200% tariff on European wine, cognac, and other alcohol imports if the EU moves forward with plans to impose duties on American whiskey. This is part of a broader trade dispute in which both sides have introduced tariffs on various goods, further straining transatlantic relations.

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Washington is reportedly seeking external sources of supply amid soaring prices in the domestic market

The US Department of Agriculture (USDA) has reached out to producers in several EU nations to secure additional egg imports amid skyrocketing domestic prices, Reuters reported Friday, citing the Danish egg association.

The request comes despite recent trade tensions between Washington and Brussels over import tariffs imposed by the US administration on various EU goods.

A USDA representative in Europe reportedly sent formal inquiries in late February to several egg-producing countries, including Denmark, Sweden, and Finland.

US wholesale egg prices recently hit an all-time high of $8.41 per dozen, marking a surge of over 200% from the previous year, according to Bloomberg. The price hike is attributed to an accelerating outbreak of bird flu among laying hens, significantly reducing egg supplies.

“We’re still waiting for more guidance from Washington on next steps, but do you have an estimate of the number of eggs that could be supplied to the US (assuming they meet all import requirements),” a follow-up letter to the Danish egg association reviewed by Reuters said, indicating that the White House was trying to estimate feasible import quantities.

A spokesperson for the association told Reuters that they would look into the situation, but emphasized that there was no surplus of eggs in Europe.

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“There is a shortage of eggs everywhere on a global scale, because consumption is increasing, and many are affected by bird flu,” he specified, adding that egg exports to the US could be challenging due to hygiene regulations and other factors.

Danish industry representative Jorgen Nyberg Larsen confirmed in an interview with AgriWatch that Washington had inquired about how much could potentially be supplied, adding that “they have also contacted my colleagues in the Netherlands, Sweden, and Finland.”

Last week, sources familiar with the matter told Bloomberg that the US Justice Department had launched a preliminary investigation into the surge in egg prices across the country. The probe reportedly focuses on whether local suppliers such as Cal-Maine Foods and Rose Acre Farms had colluded to hike prices or limit supply.

Earlier this week, US President Donald Trump’s 25% tariff hike on steel and aluminum imports from the EU took effect, following the expiration of previous exemptions and duty-free quotas. The European Commission responded by announcing counter-tariffs on €26 billion (over $28 billion) worth of US goods, set to begin in April.

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The Zuchongzhi-3 chip vastly outperforms Google’s Sycamore chip, according to its creators

Chinese scientists have unveiled a new superconducting quantum computing prototype they say operates a million times faster than Google’s top quantum processors. The Chinese chip is also a quadrillion times more efficient than any conventionally built supercomputer, according to a statement issued by its creators.

Dubbed Zuchongzhi-3, the chip was developed by the University of Science and Technology of China (USTC) in cooperation with half a dozen of the nation’s scientific institutions. The USTC published the results of its research and the chip’s performance analysis in an article for the Physical Review Letters earlier this month.

According to the university’s statement, the testing showed that the new Chinese processor is a million times faster than Google’s Sycamore processor. The US tech giant presented its quantum computer back in October 2024, boasting that it could surpass the fastest conventional supercomputers in performing computationally complex calculations.

“We are focused on developing practical applications for quantum computers that cannot be done on a classical computer,” Google Quantum AI representatives said at the time. The USTC said in its statement that Zuchongzhi-3’s computational speed outpaced that of the world's most powerful supercomputer by 15 orders of magnitude (a quadrillion times faster).

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It is unclear how the newly unveiled chip compares to another Google product – the Willow quantum processor unveiled in December. The two have roughly similar processing capacities, although the Willow is reportedly slightly better than its Chinese rival when it comes to coherence time, a key parameter enabling more complex computations, according to Live Science. The US tech giant has not commented on the USTC statement.

Chinese companies have substantially boosted investments in AI and quantum computing after President Xi Jinping urged the nation to accelerate fundamental scientific research. Beijing is aiming to increase self-reliance in crucial areas, including chip-making, space exploration, and military sciences.

Bloomberg reported in October 2023 that Chinese companies and institutions applied for 29,853 AI-related patents in 2022, compared to 29,000 in the previous year. The figure is nearly 80% more than US filings.

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Moscow and Washington are in “preliminary” contact on global energy projects, the news agency has reported

Moscow and Washington are currently in talks over the possibility of future cooperation with Gazprom on international projects, including in the Arctic region, Bloomberg reported on Thursday, citing Russian and European officials. The news comes as the US seeks to normalize relations with Russia and gain access to the economically important region.

The Arctic has drawn increasing global attention due to its vast untapped energy and mineral resources, as well as its strategic trade routes. Russia has been developing its Northern Sea Route, the shortest shipping route between Western Eurasia and the Asia-Pacific, running through its Arctic and Far East regions. The route has been extensively modernized over the past years, with investment from India and China, which hold stakes in several Arctic energy projects.

One of the sources told Bloomberg that Russian state-run energy giant Gazprom could offer the US involvement in ventures in the Arctic region and some offshore projects such as the Sakhalin liquefied natural gas project if sanctions restricting foreign investment are overturned.

Unnamed sources familiar with the matter told the news agency that talks between US and Russian representatives on potential collaboration with Gazprom are at the stage of “preliminary contacts.” It is reportedly unclear who is leading the reported discussions or whether officials from the administration of US President Donald Trump are directly involved.

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US-Gazprom cooperation could involve joint projects in Europe and Asia, several sources said, adding that it could be part of Washington’s broader push to weaken Russia’s ties to China and Iran. Bloomberg noted that the step could also promote business opportunities following a peace deal to end the Ukraine conflict, which Trump sees as a top priority.

Earlier this week, German news outlet Correctiv reported, citing its own investigation, that Russia and the US were negotiating a major deal that would allow the resumption of Russian energy exports. The months-long discussions could reportedly involve US companies buying parts of the Nord Stream pipeline infrastructure and stakes in three German refineries owned by a subsidiary of Russian energy giant Rosneft.

Neither the Kremlin nor the White House has officially commented on the reports. President Vladimir Putin said on Thursday that Russia could resume gas exports to Europe through the undersea pipeline once Moscow and Washington reach an agreement on energy cooperation.

The Nord Stream 1 and 2 pipelines, built to deliver Russian gas to Germany and the rest of Western Europe, were destroyed by blasts at the bottom of the Baltic Sea in September 2022.

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The rally to more than $3,000 an ounce is driven by growing demand for safe-haven assets amid escalating trade tensions

Gold prices reached a record high on Thursday as investors spooked by mounting concerns over a global trade war seek safe-haven assets. The latest rally comes amid on-off tariff announcements by the US.

Import taxes on steel and aluminum imposed by US President Donald Trump took effect on Wednesday, sparking concerns in export-dependent Asia and prompting immediate retaliatory measures from the EU and Canada. Prior to the tariff imposition, Trump threatened to hike the levy on Canadian metals to 50%, but reversed the plan after Ontario Premier Doug Ford overturned his decision to introduce a 25% surcharge on electricity exports to several US states.

Gold futures for April delivery briefly hit $3,003.90 per ounce Thursday night on the Chicago Mercantile Exchange (CME) before retreating to $2,989.50, marking the first time a contract has crossed the psychologically important $3,000 threshold. Prices for the precious metal are up nearly 14% so far this year after making a solid 27% gain in 2024.

“The risk-off market stance reflects investors’ expectations that trade tensions are likely to get worse before it cools, and are turning to safe-haven gold once again as a hedge against portfolio volatility,” IG market strategist Yeap Jun Rong said, as cited by Reuters.

Apart from concerns related to global trade tensions, analysts attribute the latest rally in gold prices, an asset preferred by investors amid geopolitical and economic turmoil, to bets on monetary policy easing by the US Federal Reserve. The regulator is expected to keep its key interest rate in the 4.25%-4.50% range at the meeting scheduled for next Wednesday.

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“The potential impact of the tariff and trade threats are impossible to model, forcing the Fed to gauge economic data to help it determine its next move,” John Ciampaglia, CEO of Sprott Asset Management, told the news agency, adding that analysts “believe the Fed is stuck in a wait-and-see state.”

Gold prices reached 40 record highs in 2024, driven by increasing geopolitical tensions in the Middle East and Eastern Europe, uncertainty regarding the outcome of the US presidential elections, interest rate cuts, and active gold purchases by major central banks, according to a survey by the World Gold Council.

In the latest analysis of volatility across commodity markets, the head of commodity strategy at TD Securities, Bart Melek, stated that central banks have seen record buying of gold in recent years due to concerns about the sustainability of dollar purchasing power and geopolitical tensions between major economic powers.

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The exemption was part of the rollout of stringent measures targeting the Russian oil trade

The US Treasury allowed a 60-day waiver for energy-related financial transactions with sanctioned Russian banks to expire on Wednesday, according to multiple news outlets citing officials.

Originally issued by the administration of President Joe Biden on January 10, General License No. 8L provided 12 major Russian financial institutions, including the country’s central bank, limited access to US payment infrastructure.

The grace period was meant to give time to clear remaining transactions as the outgoing government imposed stricter sanctions on Russian oil trade. The escalation of sanctions was reportedly coordinated with Donald Trump’s transition team before he became president, aiming to strengthen his position in negotiations with Moscow.

Upon taking office, Trump initiated talks aimed at normalizing relations with Russia. However, he has also warned of imposing additional sanctions if Moscow is unwilling to compromise regarding the Ukraine conflict.

The Trump administration “remains focused on ending the fighting and fostering negotiations to resolve the war,” an emailed statement from a Treasury spokesperson, quoted by Reuters on Friday, asserted. “We continue to implement our sanctions, which remain one of the levers to facilitate these goals.”

READ MORE: Investors betting on Russian return to Western markets – Bloomberg

This week, Trump proposed a 30-day ceasefire between Ukraine and Russia after pressuring Kiev to reassess its previous stance that no truce could occur without Western security guarantees. Russian President Vladimir Putin has expressed support for such an initiative, contingent on Ukraine refraining from using the pause to rearm and regroup before resuming hostilities.

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Swedish businessman Carl Lundstrom has perished in a plane crash in Slovenia

The co-founder and financial backer of file-sharing website The Pirate Bay, Carl Lundstrom, died when the plane he was piloting crashed in the mountains of Slovenia, a nationalist Swedish political party with which the entrepreneur was linked announced on Wednesday.

Slovenian police later confirmed to Agence France-Presse (AFP) on Wednesday that a body found at the crash site is “likely of the pilot, a Swedish citizen,” but declined to identify the remains pending forensic research.

The Alternative for Sweden party said in a post on Facebook that the fatal accident, which claimed the life of “a legend and veteran of Swedish nationalism” occurred on Monday.

The party cited a close friend of Lundstrom, who said that the 64-year old businessman, who had taken off in his Mooney M-20 aircraft from the Croatian capital of Zagreb, had been heading to Zurich, Switzerland.

The plane crashed into a wooden cabin in the Velika Planina area of northern Slovenia, splitting the structure in two, AFP reported, adding that bad weather conditions had prevented rescuers from recovering the body before Tuesday.

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Lundstrom, the grandson of the founder of the world’s largest crisp bread producer Wasabrod, was one of the early financial backers of The Pirate Bay. The site was launched in 2003 to allow web users to avoid paying copyright fees while sharing music, movies and other files. Telecommunications operator Rix Telecom, owned by the entrepreneur, provided services and equipment to the service until 2005.

Lundstrom and three other defendants were charged with “accessory to breaching copyright law” in 2009 and sentenced to one year in jail and ordered to pay 30 million Swedish krona ($3 million) in damages to several major media companies. As a result of an appeal claim, the fine was increased and the sentence was reduced to four months, which he served.

Involved in politics, the businessman funded the Swedish Progress Party in 1991 before it later merged with the Sweden Democrats. According to Alternative for Sweden, Lundstrom joined the party in 2018, serving as a district manager and later running in the 2021 Church Assembly election, which he lost.

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