Donald Trump has doubled India’s tariff rate to 50% to punish it for buying oil from Russia. Markets are also wary of imminent Trump announcements on replacing key people at the Fed and the Bureau of Labor Statistics (BLS).
5 things to know in 5 minutes:
Donald Trump has hiked India’s tariff rate to 50% from 25% to punish it for buying oil from Russia. India’s stock market fell, as did the Indian Rupee, which was already near record lows ahead in anticipation of the news. ANZ Economist in London Bansi Madhavani says the 50% rate puts India at a disadvantage with other competitors on tariff rates closer to 20%.
Bansi says markets are also worried about a couple of other announcements Donald Trump has up his sleeve: the appointment of a new Fed Governor and a replacement for the BLS boss he fired.
Before Trump’s confirmation of the 50% tariff, the Reserve Bank of India (RBI) decided to hold its key rates. ANZ Economist Dhiraj Nim had expected a cut.
Dhiraj says the RBI may have overestimated growth and inflation.
ANZ Senior Economist Miles Workman says the data underlying New Zealand’s unemployment rate rising to 5.2% from 5.1% were softer than the headlines suggested.
Cheers,
Bernard.
PS: Catch you tomorrow with with part two of Soni’s deep-dive interview, on the opportunities for Australian mining exports as India scrambles to get its hands on these critical minerals.
