The US and global economy are losing steam, and a key forecaster said President Donald Trump's trade tariffs were part of the reason.
Stoking inflation
A 50% tariff on imports from the European Union were paused until July 7 amid "fast-tracked" negotiations, while steep levies on imports from China have also been put on hold.
The OECD said these policies were eroding investment, disrupting supply chains, and stoking inflation — especially in the US, where price growth is now projected to approach 4% by the end of the year.
OECD secretary-general Mathias Cormann said governments needed to work to keep markets open and preserve the "economic benefits of rules-based global trade for competition, innovation, productivity, efficiency and ultimately growth."
Chief economist Álvaro Pereira added: "Lower growth and less trade will hit incomes and slow job growth."
The organization urged governments to de-escalate tensions and roll back tariffs to avoid further damage to the global economy.
In a Monday note, Deutsche Bank economists said there were global signs of a "turbulent but sustained path toward trade de-escalation. The fallout from the US 'Liberation Day' policies — from falling approval ratings to a sell-off in US government bonds — forced a rethink in Washington. While recent court rulings could pave the way for an even more benign trade regime, they also prolong uncertainty."
The bank also expected US GDP to grow by 1.6% this year and by 1.7% in 2026 on an annual average basis.
India’s agri sector transformed by five-fold budget surge over 11 years: Govt
India's agricultural sector has undergone a "profound transformation" over the past 11 years through various government schemes and increased budgetary allocations, empowering farmers to lead the nation from food security to global food leadership, the government said on Saturday.
The transformation has focused on inclusivity by supporting small farmers, women-led groups and allied sectors while positioning India as a global agricultural leader, according to an official statement.
"Over the past eleven years, under Prime Minister Narendra Modi's leadership, India's agricultural sector has undergone a profound transformation, rooted in the philosophy of Beej Se Bazaar Tak (seed to market)," the government said.
Budget estimates for the Department of Agriculture and Farmers' Welfare have risen from Rs 27,663 crore in 2013-14 to Rs 1,37,664.35 crore in 2024-25, an increase of nearly five times, it added.
India's foodgrain production grew from 265.05 million tonnes in 2014-15 to an estimated 347.44 million tonnes in 2024-25, showing strong growth in agricultural output.
The government has also increased minimum support prices (MSP) significantly. MSP for wheat rose from Rs 1,400 per quintal in 2013-14 to Rs 2,425 per quintal in 2024-25, while paddy prices increased from Rs 1,310 per quintal in 2013-14 to Rs 2,369 per quintal in 2025-26.
Under the PM-KISAN scheme launched in February 2019, the government has disbursed Rs 3.7 lakh crore to more than 110 million farmers. The Kisan Credit Card scheme has provided about Rs 10 lakh crore in credit to 7.71 crore farmers.
Procurement data shows improvement across crops. Kharif crop procurement totalled 787.1 million tonnes between FY15 and FY25 compared to 467.9 million tonnes in the previous decade from 2004-05 to 2013-14.
Pulses procurement at MSP increased significantly from 1,52,000 tonnes during 2009-2014 to 8.3 million tonnes during 2020-2025, while oilseeds procurement at MSP increased multifold over the past 11 years.
The government's approach has focused on modern irrigation, credit access, digital marketplaces and agri-tech innovations while reviving traditional practices like millet cultivation and natural farming. Allied sectors, including dairy and fisheries, are also expanding.
"As India enters Amrit Kaal, its empowered farmers stand ready to lead the nation from food security to global food leadership," the statement said.View on Watch
Economictimes
US DoT says Biden fuel economy rules exceeded legal authority
The mandate that the DoT challenged was a key part of former US President Joe Biden’s plan to address climate change.
The United States Department of Transportation (DoT) has declared that former President Joe Biden’s administration exceeded its authority by assuming a high uptake of electric vehicles in calculating fuel economy rules.
With that declaration on Friday, the DoT paved the way for looser fuel standards and published the “Resetting the Corporate Average Fuel Economy Program” (CAFE) rule. A future separate rule from the administration of President Donald Trump will revise the fuel economy requirements.
“We are making vehicles more affordable and easier to manufacture in the United States. The previous administration illegally used CAFE standards as an electric vehicle mandate,” Transportation Secretary Sean Duffy said in a statement.
The department’s National Highway Traffic Safety Administration (NHTSA), in writing its rule last year under Biden, had “assumed significant numbers of EVs would continue to be produced regardless of the standards set by the agency, in turn increasing the level of standards that could be considered maximum feasible,” it said Friday.
A shift away from Biden policies
In January, Duffy signed an order directing NHTSA to rescind fuel economy standards issued under Biden for the 2022-2031 model years that had aimed to drastically reduce fuel use for cars and trucks.
In a release last year, the DoT, then led by Pete Buttigieg, put in place a required fuel economy to increase by 2 percent for cars made between 2027 and 2031.
At the time, the DoT said it would help save consumers upwards of $600 on gas every year. It was also part of the Biden administration’s plan to address climate change.
“These new fuel economy standards will save our nation billions of dollars, help reduce our dependence on fossil fuels, and make our air cleaner for everyone. Americans will enjoy the benefits of this rule for decades to come,” then NHTSA Deputy Administrator Sophie Shulman said at the time.
In June 2024, the NHTSA said it would hike CAFE requirements to about 50.4 miles per gallon (4.67 litres per 100km) by 2031 from 39.1mpg currently for light-duty vehicles.
The agency last year said the rule for passenger cars and trucks would reduce gasoline consumption by 64 billion gallons and cut emissions by 659 million metric tons, cutting fuel costs with net benefits estimated at $35.2bn.
Late on Thursday, Senate Republicans proposed eliminating fines for failures to meet CAFE rules as part of a wide-ranging tax bill, the latest move aimed at making it easier for automakers to build gas-powered vehicles.
Last year, Chrysler-parent Stellantis paid $190.7m in civil penalties for failing to meet US fuel economy requirements for 2019 and 2020 after paying nearly $400m for penalties from 2016 through 2019. GM previously paid $128.2m in penalties for 2016 and 2017.
Stellantis said it supported the Senate Republican proposal “to provide relief while DoT develops its proposal to reset the CAFE standards … The standards are out of sync with the current market reality, and immediate relief is necessary to preserve affordability and freedom of choice.”
GM declined to comment.
SOURCE: NEWS AGENCIES