European Commission mulls tariffs on US goods
Brussels — The European Commission is targeting €72bn worth of US goods — from Boeing aircraft and bourbon whiskey to cars — for possible tariffs if trade talks with Washington fail.
US President Donald Trump is threatening a 30% tariff on imports from the EU from August 1, a level European officials said was unacceptable and would end normal trade between two of the world’s largest markets.
The list, sent to EU member states and seen by Reuters on Tuesday, predates Trump’s move over the weekend to ramp up pressure on the 27-nation bloc and responds instead to US duties on cars and car parts and a 10% baseline tariff.
The package also covers chemicals, medical devices, electrical and precision equipment as well as agriculture and food products — a range of fruits and vegetables, along with wine, beer and spirits — valued at €6.35bn. Reuters
Destruction of global wetlands comes at a high cost
Nairobi — The global destruction of wetlands, which support fisheries, agriculture and flood control, may mean the loss of $39-trillion in economic benefits by 2050, according to a report by the Convention on Wetlands released on Tuesday.
About 22% of wetlands, both freshwater systems such as peat lands, rivers and lakes, and coastal marine systems including mangroves and coral reefs, have disappeared since 1970, according to the intergovernmental report, the fastest pace of loss of any ecosystem.
Pressures, including land-use change, pollution, agricultural expansion, invasive species, and the effects of climate change — such as rising sea levels and drought — are driving the declines.
“The scale of loss and degradation is beyond what we can afford to ignore,” said Hugh Robertson, the lead author of the report. Reuters
UN confirms malnutrition rates are rising in Gaza
Geneva — One in 10 children screened in clinics run by the UN refugee agency in Gaza since 2024 has been malnourished, the agency said on Tuesday.
“Our health teams are confirming that malnutrition rates are increasing in Gaza, especially since the siege was tightened more than four months ago on the second of March,” UN Nations Relief and Works Agency for Palestine Refugees director of communications Juliette Touma told reporters in Geneva via a video link from Amman, Jordan.
Since January 2024, the agency said it had screened more than 240,000 boys and girls under the age of five in its clinics, adding that before the war, acute malnutrition was rarely seen in the Gaza Strip. Reuters
Calls grow for Mumbai to cut rate again in 2025
Mumbai — A slump in India’s retail inflation to six-year lows and a likely drop to a record low in July is prompting calls for at least one more interest rate cut this year, with many analysts saying the sharp disinflation is also a sign of weakening demand.
The drop in June headline inflation is accompanied by low core inflation, which, excluding gold, silver and fuel prices, remains below 4%, suggesting softer underlying consumption which may need more support from monetary policy, analysts said.
The Reserve Bank of India cut interest rates by a deeper-than-expected 50 basis points (bps) at its last policy review in June but changed its stance to “neutral”, signalling limited room to cut rates further.
After Monday’s surprise inflation reading, however, analysts and markets are reflecting the rising possibility of more easing. Swap rates moved lower on Monday and Tuesday, suggesting bets on at least one more rate reduction ahead. Reuters
Tesla launches Model Y at $70,000 in India
Mumbai — Tesla launched on Tuesday its Model Y at about $70,000 in India, a large markup relative to its other major markets, reflecting the country’s high tariffs on electric vehicle imports, which CEO Elon Musk has long-criticised.
With deliveries estimated to start from the third quarter, the US automaker is targeting a niche electric vehicle segment in India that accounts for just 4% of overall sales in the world’s third-largest car market.
It will compete mainly with German luxury giants such as BMW, Mercedes-Benz and South Korea’s Kia rather than domestic mass-market electric vehicle players such as Tata Motors and Mahindra.
Tesla opened its first showroom in Mumbai on Tuesday and began taking Model Y orders on its website, marking its long-awaited entry into the market where Musk once had plans to open a factory. Reuters
Uganda’s forex reserves rise by about one-third
Kampala — Uganda’s foreign exchange reserves have risen by about one-third over the past year, a senior finance ministry official said on Tuesday, reversing a downward trend that the central bank had flagged as a concern.
Gross reserves stood at $4.3bn in June, equivalent to 3.8 months of import cover and up from $3.2bn a year earlier, the finance ministry’s permanent secretary Ramathan Ggoobi told a press conference.
Ggoobi did not say why the East African country’s reserves had risen, but in a March report on the state of the economy the central bank said it had stepped up foreign exchange purchases to boost reserves. Reuters
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