Major International Business Headlines Brief ::: 29 Jul 2025

Tue Jul 29 13:13:40 CAT 2025

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Major International Business Headlines Brief :::  29 Jul  2025 

 <mailto:info at bulls.co.zw> 

ü  South Africa: City Power Targets Illegal Electricity Connections

ü  Africa: AU Pushes for Concerted Effort to Transform Agriculture in Africa

ü  Uganda's Petroleum Development 'Not a Local Government Thing'

ü  Ethiopia, Italy Sign Agreement to Partner in Agriculture Sector

ü  Nigeria: Banks, Others to Report Monthly Transactions of N25m to Tax Authories

ü  Nigeria: Pay Compensation for Short-Landed Baggage or Face Sanctions - NCAA Orders Airlines

ü  Rwanda: Regulator Summons MTN Over Service Disruptions

ü  Kenya: Nairobi Securities Exchange Sees Rare Surge in Listings

ü  Nigeria: Lagos Govt Urges Doctors to Shelve 3-Day Warning Strike

ü  Africa to Tackle Water Investment Gap At Summit

ü  Egyptair, Rolls-Royce in Talks Over Cooperation in Aircraft Engine Maintenance

ü  US companies up against 'nightmare' tariff wall

ü  China offers parents $1,500 in bid to boost births

ü  Six things that may cost Americans more after Trump's tariffs

ü  India's AI-driven tech firings could derail middle class dreams

 <mailto:info at bulls.co.zw> 

South Africa: City Power Targets Illegal Electricity Connections

City Power has stepped up efforts to cut illegal connections and disconnect customers who don't pay, reports EWN. It said that illegal connections cost the utility more than R2.5 billion in financial loss annually. The power utility officials said that they were targeting areas prone to capacity challenges, such as informal settlements and backyard rooms, where illegal connections are prevalent. Spokesperson Isaac Mangena said that the disconnections are a means to ensure that customers connect and buy electricity legally, and to register informal settlements for free basic electricity so the utility can track losses and claim support from Treasury.

Police Intercept 30 Unlicensed Guns Destined for Western Cape

Two men, aged 34 and 45, were arrested in Meyersdal, Johannesburg, by a police anti-kidnapping task team following days of surveillance across provinces, reports SABC News.  They were found with 30 unlicensed 9mm firearms, allegedly meant for the Western Cape. Police said that the suspects planned to transport the guns themselves and are linked to other crimes in Gauteng and the Western Cape. They face multiple charges and remain in custody as investigations into the gun trafficking syndicate continue.

Liam Jacobs Replaces Kunene in Joburg Council

Former DA MP Liam Jacobs, who recently joined the Patriotic Alliance (PA), will fill the City of Joburg Council seat left vacant by Kenny Kunene's resignation, reports EWN. PA president Gayton McKenzie said a law firm will soon be appointed to investigate Kunene's presence at the home of suspected murderer Katiso Molefe, where he was arrested last week. McKenzie backed Kunene's claim that he was being set up, but insisted it was important for the process to be transparent. He denied knowing Molefe and dismissed social media images linking him to the suspect. Jacobs's council role is meant to prepare him for a mayoral run in Tshwane in 2026.

More South African news

Africa: AU Pushes for Concerted Effort to Transform Agriculture in Africa

ADDIS ABABA - The African Union (AU) has urged stakeholders to make concerted efforts to intensify the implementation of policies and programs that create an enabling environment to make agriculture in Africa more inclusive and profitable.

As the second UN Food Systems Summit takes place in Addis Ababa, the seat of the AU, the continental bloc highlighted the significance of Africa's 10-year Comprehensive Africa Agriculture Development Programme (CAADP), which was launched in January 2025 to boost production and reduce imports.

Africa is a net food importer with heavy reliance on the international food market for wheat, rice, and edible oil, which costs over one billion USD per annum. From 2010 to 2019, Africa's average annual food import was valued at approximately 74.1 billion USD. Of this, cereals, sugar, and vegetables amounted to 22.8, 6.4, and 8.5 billion USD respectively, according to the Union.

By 2021, Africa's food import rose significantly to 100 billion USD. It is expected to increase exponentially as Africa's population is set to double to 2.4 billion by 2050, posing a greater food demand and intensifying the need for significant increases in agricultural production, productivity, food processing, and trade, it stated.

To change this trend, the AU stressed the need to reduce Africa's overreliance on imports and focus on strengthening its local food system. In this regard, African leaders have expressed commitment to intensify sustainable food production, agro-industrialization, and trade when they adopted CAADP last January.

They plan to achieve this ambition by improving the productivity of farmers through enhanced access to yield-raising inputs such as quality seeds, fertilizers, and technologies, as well as services including extensions, finance, training, and building infrastructures for farmers to reduce post-harvest losses and access markets, the Union mentioned.

This requires concerted efforts among stakeholders to facilitate the formulation and implementation of policies and create an enabling environment to make agriculture inclusive and profitable, it underscored.

The African Union's new agricultural development strategy will see the continent increase its agri-food output by 45 percent by 2035 and transform its agri-food systems as part of its new plan to become food secure in a decade. The strategy will also see Africa reduce post-harvest loss by 50 percent, triple intra-African trade in agri-food products and inputs by 2035, and raise the share of locally processed food to 35 percent of agri-food GDP by 2035.

The adoption of the strategy is seen as a pivotal moment that will lay the groundwork for agri-food systems across the continent and enable countries to act.

BY STAFF REPORTER

THE ETHIOPIAN HERALD TUESDAY 29 JULY 2025

Uganda's Petroleum Development 'Not a Local Government Thing'

For a long time, petroleum (oil and gas) host districts have been clamoring for budget allocation to participate in oil activities as provided for under the petroleum policy. In spite of the loud cry, the 2025/2026 budget did not capture a vote for petroleum-related activities. Petroleum (oil and gas) development is currently regarded as Uganda's fastest-growing sector. The government participates in this process through the Uganda National Oil Company (UNOC), which was incorporated in 2015 as the commercial arm of the government, and the Petroleum Authority of Uganda (PAU), established in 2013 as the sector regulator.

Section 7(3) of the National Oil and Gas Policy for Uganda (2008) mandates local governments to participate in getting voices of the poor into the design, monitoring, and implementation of programs in the oil and gas sector. In spite of the policy mandate, there are no specific budget allocations to foster local governments' participation in the petroleum activities. For example, in the 2025/26 budget, Hoima district local government's environment and natural resources department had limited her interventions to Environment Impact Assessment (EIA) and feasibility studies in the sub-counties of Kapaapi, Kyabigambire, Kitoba and Buseruka. This position, if unchecked, will barely culminate into participation in petroleum-specific activities thus limiting their oil and gas policy mandate.

The Central Government and oil and gas companies need to consider bringing local governments 'on board during the planning and implementation of activities. These activities, for example include; Resettlement Action Plan (RAP) monitoring, Joint environmental compliance monitoring, implementation of Corporate Social Responsibility (CSR) activities, among others. These need to be periodically domiciled in the respective districts' budget framework papers. The districts' (local government) participation is always limited to project inception meetings, grievance management under the District Resettlement Committees (DIRCO) and quarterly update meetings through the Joint Venture Partners (JVPs), as well as commissioning of projects.

While oil and gas interventions may appear to be high-level enablers, every local government in the oil region has Community Development, Environment and Natural Resources Departments, among others. These are capable of promoting ownership and disseminating information. Unfortunately, companies rely on "rotational Community Liaison Officers" (CLOs) who engage with communities for a certain contractual period. These CLOs often operate from inaccessible locations such as highly protected camps and hotels; thus limiting continuous community interaction/participation.

As a result, residents are turning to local government officials like Sub-County Community Development Officers (CDOs) and parish chiefs whose involvement is often menial and/or are technically excluded from project activities. In an ironic twist of events, when projects end, CLOs often disengage and responsibility falls back on the age-old under-resourced local governments whose capacities are never strengthened by the Petroleum companies.

Whereas the local government stakeholders are currently concentrating on key government programs such as "Emyooga" and "Parish Development Model-PDM"; central government and Petroleum companies should ideally gear their efforts towards integrating Petroleum development into the current local government programs to foster sustainable socio-economic development.

Read the original article on Independent (Kampala).

Ethiopia, Italy Sign Agreement to Partner in Agriculture Sector

Addis Ababa, — The governments of Ethiopia and Italy have today signed a partnership agreement in the agricultural sector.

Ethiopia's Minister of Agriculture, Girma Amente, and Italian Counterpart Francesco Lollobrigida signed the agreement on the margins of the United Nations Food System Summit, which is underway in Addis Ababa.

The agreement is meant to further strengthen the existing cooperation between the two countries and gives focus on modernizing the coffee development value chain, it was learned.

Minister Girma stated during the event that the agreement offers a significant opportunity to harness Italy's vast potential among European nations in the modernization of the agricultural sector.

Italian Minister of Agriculture, Francesco Lollobrigida, for his part, said the deal aims to transfer agricultural technologies.

Read the original article on ENA.

Nigeria: Banks, Others to Report Monthly Transactions of N25m to Tax Authories

Banks, insurance companies and other financial institutions will henceforth report monthly transactions above N25 million for individuals and N100 million for firms to the tax authorities.

This directive was contained in the Nigeria Tax Administration Act, NTAA section 29, titled, " Information to be delivered by bankers and others"

The NTAA is among the new tax laws which will come into effect from January 2026. The new laws also include the Nigeria Tax Act 2025.

The law stated: "Without prejudice to section 142 of this Act, every bank, insurance company, stock broking firm, or any other financial institution, shall prepare, with or without demand by the relevant tax authority, quarterly returns to the relevant tax authority specifying the names and addresses of (a) New customers; and (b) existing customers in the case of -- (i) an individual, all transactions where the cumulative transactions in a month amount to N25,000,000 or more, or (ii) a body corporate, all transactions where the cumulative transactions in a month amount to N100,000,000 or more."

Furthere more, the NTAA also stipulated that banks and other financial institutions will act as third-party debt recovery agents.

The Act stated that the tax authority may transfer the responsibility for tax debt recovery to a third party only when all legal avenues have been exhausted.

According to the Act: "On recovery of debt owed to failed banks", notwithstanding, anything to the contrary in any law, deed, agreement or memorandum of understanding , the court shall have exclusive jurisdiction to hear and determine all matters brought before it concerning the recovery from any person of any debt owed to a failed bank, which remains outstanding as at the date of closure of the business of failed bank".

The Act further stated that third-party agents will also be deployed if the debt is of significant value.

"The relevant tax authority may assign outstanding tax debts, in whole or in part, to an accredited third party who shall assume responsibility for recovering the tax debts in accordance with the provisions of this Act or regulations issued by the Service," the legislation read.

"The relevant tax authority shall only assign outstanding tax debts to a third party where all legal steps for tax debt recovery under this Act have been exhausted, including notifications, payment demands, and enforcement actions.

"For the purposes of this section "third party" includes banks and other financial institutions, debt recovery practitioners, or any other person accredited by the relevant tax authority," the Act said.

Read the original article on Vanguard.

Nigeria: Pay Compensation for Short-Landed Baggage or Face Sanctions - NCAA Orders Airlines

The Nigerian Civil Aviation Authority (NCAA) has directed all domestic and international airlines operating in the country to strictly comply with the First Need compensation policy for passengers whose checked baggage arrives late, or risk facing sanctions.

Short-landed baggage refers to luggage that fails to arrive with the passenger at the destination airport, typically due to mishandling or delays, and is delivered on a subsequent flight.

According to Part 19 of the Nigeria Civil Aviation Regulations (NCAR) 2023, affected domestic passengers are entitled to ₦10,000, while international passengers must receive $170 to cover immediate personal needs while awaiting their baggage.

Speaking during an engagement with domestic airline regional managers at the Nnamdi Azikiwe International Airport, Abuja, Mr. Michael Achimugu, Director of Public Affairs and Consumer Protection at NCAA, warned that the Authority will begin to sanction non-compliant airlines.

"This engagement perhaps should be the last time we will have to discuss the issue of this first need.

"The regulations are very clear. Some station managers even claimed ignorance of the policy, which is unacceptable. Going forward, you must comply," Achimugu stated.

Achimugu noted that airlines are required not only to pay the First Need amount but also to deliver the delayed baggage to the passenger's address within seven days at no extra cost.

He decried the practice where passengers are forced to return to the airport to retrieve their luggage, calling it a breach of consumer rights.

"We understand that the airlines are facing operational and capacity challenges, and we commend the effort so far. However, the regulation must be obeyed. You must operate at a world-class standard," he emphasised.

Also speaking, Mrs. Ifueko Abdulmalik, Senior Special Assistant to the Director-General of the NCAA, explained that where baggage delivery is excessively delayed, passengers are entitled to additional compensation, provided they present receipts for essential items purchased due to the delay.

In response, airline representatives appealed to the NCAA to work with the Federal Airports Authority of Nigeria (FAAN) and terminal operators to fix damaged infrastructure such as conveyor belts, which they say hinder efficient baggage handling.

Part 19 of the NCAR 2023 outlines the rights of air passengers in Nigeria, covering issues such as overbooking, flight delays, cancellations, and mishandled baggage.

Read the original article on Vanguard.

Rwanda: Regulator Summons MTN Over Service Disruptions

The Rwanda Utilities Regulatory Authority (RURA) announced on July 28 it decided to summon MTN Rwanda's leadership to address the identified "persistent and recurring issues in its service delivery."

ALSO READ: MTN Rwanda, RURA agree on $8.5 million fine payment plan

These issues include disruptions in voice services, SMS, USSD (the service used to access mobile money wallets), and challenges related to interconnect traffic between service providers.

in a Monday night post on X, RURA indicated that the meeting in which the telecom company officials are expected to provide explanations and solutions to service shortcomings is expected on Tuesday, July 29.

"In accordance with the regulations, MTN's leadership has been invited for a formal meeting tomorrow, Tuesday at 9:00 AM, to provide explanations regarding these issues and to present concrete measures to improve service quality and prevent similar disruptions from recurring," RURA stated.

The telecom company had communicated with its customers that its services were being disrupted over the past two days.

In a Monday post, MTN Rwanda said "we are currently experiencing intermittent service disruptions affecting voice and USSD services across the country."

"Our technical team is working urgently to restore full service," it added, apologising for any inconvenience caused the disruption.

It later communicated that the voice and USSD services had been restored.

Read the original article on New Times.

Kenya: Nairobi Securities Exchange Sees Rare Surge in Listings

The Nairobi Securities Exchange (NSE) is witnessing an unusual uptick in market activity, with three new listings slated for July--the highest in nearly a decade. Among them is the debut of Shri Krishana Overseas (SKL) Limited, a family-owned packaging company, which listed 50.5 million shares at KES 5.90 each. Of these, 8.7 million are immediately available for trading.

SKL's listing follows the recent entry of Linzi FinCo 003, an Infrastructure Asset-Backed Security (IABS) aimed at funding the construction of Nairobi's 60,000-seat Talanta Stadium for AFCON 2027.

SKL Managing Director Sonvir Singh said listing on the NSE is part of the firm's institutionalisation efforts. Finance Director Nirmla Devi added the move will enhance visibility and support growth in sustainable packaging.

The listings point to renewed momentum at the NSE, which has seen few public offerings in recent years. Also pending is the potential IPO of the state-owned Kenya Pipeline Company (KPC), a cornerstone of President William Ruto's privatization strategy.

Daba is Africa's leading investment platform for private and public markets. Download here

Key Takeaways

The burst of listings at the Nairobi Securities Exchange marks a shift in market sentiment after years of stagnation. With SKL and Linzi FinCo 003 already onboard and KPC potentially on the way, the NSE is positioning itself as a more viable avenue for both private and public sector capital raising. SKL's debut underscores the role family-owned businesses can play in broadening market participation. Meanwhile, Linzi's infrastructure-backed issuance reflects the increasing use of capital markets to fund national development projects without relying solely on public borrowing. The anticipated KPC listing could further open up Kenya's capital markets to institutional and retail investors, while advancing government goals around governance, transparency, and fiscal sustainability. Together, these developments suggest that capital markets are gradually regaining relevance in Kenya's economic planning--both as a financing tool and as a mechanism to drive structural reform.

Read the original article on Daba Finance.

Nigeria: Lagos Govt Urges Doctors to Shelve 3-Day Warning Strike

The Lagos State Government has appealed to medical doctors to postpone their three-day warning strike, scheduled to begin today, stating that negotiations and engagements with the Medical Guild are ongoing.

This is contained in a statement issued by Tunbosun Ogunbanwo, the Director, Public Affairs in the Lagos State Ministry of Health.

The government assured that all grievances of the doctors were being looked into with utmost sincerity and urgency.

The News Agency of Nigeria (NAN) reports that the Medical Guild is the association of doctors under the employment of the Lagos State Government on July 26 declared a three-day warning strike.

The warning strike, scheduled to begin on Monday, was announced by the Medical Guild at a press conference on Saturday

The state government acknowledged the concerns raised by the leadership of the guild, emphasising that the government was particularly concerned over the welfare, motivation, and productivity of all healthcare workers in the state.

"A conciliation committee comprising representatives from both the Medical Guild and the Government was previously constituted to resolve all outstanding issues.

"Meetings have been held, and documents submitted by the guild are being carefully reviewed in line with existing policies and fiscal regulations.

"As a responsible government, we value the critical role our healthcare professionals play in delivering quality and timely health services to the over 20 million residents of Lagos State.

"We urge the medical guild to continue on the path of dialogue while we work to reach a peaceful and just resolution in the interest of all parties, especially the residents who may bear the brunt of any service disruption," the government said.

The government commended Lagos residents for their patience and understanding, assuring the public that contingency plans are being implemented to minimise the impact on healthcare services during the period.

NAN reports that at a news conference held at the guild's secretariat in Lagos, Chairman Dr. Japhet Olugbogi said the action followed a series of failed attempts to address the matter through dialogue.

He said the disagreement began in April when the state government unilaterally deducted part of the doctors' salaries.

Although the deductions were later reversed following what he described as "spirited intervention and strategic engagement," the situation relapsed in July with a fresh round of deductions, "this time without prior notice or explanation."

NAN reports that the doctors listed key demands, including the immediate reversal of the July deductions and the full payment of the 12-month revised Consolidated Medical Salary Structure (CONMESS) arrears owed to honorary consultants at the Lagos State University Teaching Hospital (LASUTH).

Vanguard News

Read the original article on Vanguard.

Africa to Tackle Water Investment Gap At Summit

The upcoming African Union-AIP Water Investment Summit 2025 will serve as a critical platform to translate political commitment into concrete investment in Africa's water and sanitation sector.

Held under the banner of South Africa's G20 Presidency, the summit, which is set to take place in Cape Town from 13 - 15 August, aligns with the Presidency's priorities of inclusive economic growth, poverty and hunger eradication, and climate sustainability.

The landmark event will bring together African Heads of State, including global investors, Ministers, private sector leaders, and development institutions in a unified call to close Africa's $30 billion annual water investment gap.

The summit, which is jointly organised by the Republic of South Africa and the African Union Development Agency (NEPAD), the AU-AIP International High-Level Panel on Water Investments for Africa aims to mobilise urgent investments in climate-resilient water and sanitation infrastructure projects, ensuring water security, economic growth, and sustainable development across the continent.

"The 2025 Summit will serve as the premier platform to translate political will into investment commitments. Anchored in the G20 theme of 'Solidarity, Equality and Sustainability', the summit seeks to demonstrate Africa's leadership in climate and water resilience while attracting strategic capital flows from global markets," the department of Water and Sanitation said in a statement.

Key objectives of the summit

By leveraging South Africa's G20 Presidency, the summit will focus on increasing access to climate finance for water security and resilience; showcasing bankable water and sanitation projects to potential funders and investors; promoting policy and regulatory reforms for an enabling investment environment; and strengthening partnerships between governments, private sector, and development partners.

During the event, delegates will participate in high-level dialogues, engage in project matchmaking sessions, and contribute to a Declaration on Water Investments that will influence both continental and global development agendas-including preparations for the 2026 UN Water Conference.

High-level participation confirmed summit panelists include President Cyril Ramaphosa (South Africa), President Samia Hassan (Tanzania), William Rutto (Kenya), Hakainde Hichilema (Zambia), President Adama Barrow (Gambia).

Institutional leaders participating include Chairperson of the African Union Commission Mahmoud Ali Youssouf, CEO: African Union Development Agency - NEPAD Nardos Bekele-Thomas, United Nations Development Programme Administrator Achim Steiner, United Nations Childrens Fund Executive Director Catherine Russell, Global Center on Adaptation CEO Professor Dr Patrick Verkooijen, Global Water Partnership Chairperson Pablo Bereciartua, as well as Global Water Partnership, AIP High Level Panel Secretariat CEO Alex Simalabwi.

Read the original article on SAnews.gov.za.

Egyptair, Rolls-Royce in Talks Over Cooperation in Aircraft Engine Maintenance

EgyptAir Holding Company Chairman Ahmed Adel discussed with senior officials at Rolls-Royce company ways of enhancing cooperation in the domains of aircraft engine upgrade and maintenance.

Talks were held during Adel's visit to Rolls-Royce's global headquarters in UK's Derby, leading a high-level delegation.

Talks tackled maintenance and upgrade programs for Trent 700 engines that power 11 Airbus A330s and Trent 1000 engines that power 8 Boeing 787-9 Dreamliner.

The delegation inspected the main factory of Rolls Royce company in addition to engine technology research and development centers where they got acquainted with the cutting-edge technology in this regard.

The two sides also discussed final preparations for the delivery of 16 XWB engines to EgyptAir, with the first arrival expected in December 2025.

The Rolls-Royce company team reviewed the latest in digital transformation of engine monitoring systems, fuel efficiency improvements, carbon emission reduction technologies.

Read the original article on Egypt Online.

US companies up against 'nightmare' tariff wall

Donald Trump took the trade world by storm when he returned to office, announcing new and higher tariffs on imports, starting with goods from China and quickly spreading to almost every country in the world.

As the confusion from the threats, negotiations, climb-downs and carve-outs starts to clear, a new economic landscape is emerging. Trump is building a steep, and often expensive, wall of tariffs, the likes of which has not existed in the US for more than a century.

"It's been an absolute nightmare," said Jared Hendricks, owner of the Utah-based Village Lighting Company, who took out a $1.5m (£1.1m) loan backed by his home earlier this year to cover the unexpected jump in his costs.

Since April, most goods coming into the US have faced taxes of at least 10%.

The pause on some of Trump's plans to levy even higher tariffs is now coming to an end, and larger taxes are set to start on 1 August.

In recent weeks, Trump has sent letters to some countries outlining his planned tariffs on goods from their countries. He has also reached agreements, described as "frameworks", with major trading partners, including the European Union and Japan, that leave key issues unresolved while establishing levies that were once unthinkable.

In general, goods coming into the US are to be taxed 10% to 50%, depending on their origin, compared to an average tariff rate of less than 2.5% at the start of the year.

Though Trump has dropped some of his most extreme threats, his plans still represent a "dramatic shift", one poised to be "significantly disruptive", said Wendy Cutler, senior vice president at the Asia Society Policy Institute.

"We're definitely in a tariff world," she said.

Trump said the measures - delivering on a top campaign promise - have been "unbelievable".

They are bringing back US manufacturing, he said, opening up overseas markets and raising money for the US government - which has already collected more than $100bn in tariff revenue this fiscal year, a record. He is also using them to push other countries on a range of non-trade issues, including military spending and social media.

"We have the hottest country of anywhere in the world," he said recently.

Jared Hendricks Jared Hendricks, in pale polo shirt with white undershirt, stands in front of field and treesJared Hendricks

Jared Hendricks took out a loan backed by his home to cover costs

Mr Hendricks, who employs about a dozen people, though, said the new levies had created a range of challenges for his business selling Christmas lights and decor mostly made in southeast Asia.

He is expecting many of his shipments to arrive after 1 August. He struggled to compete with bigger players also pressing suppliers and shipping firms to deliver before the deadline.

The new costs hit during the off-season, when he has little money coming in.

Trump says US may not reach trade deal with Canada

How are trade deals actually negotiated?

"A hundred billion dollars in tariffs and they're celebrating that?" he said. "That's on the backs of people like me that are now trying to figure out how to pay payroll."

Larger businesses, too, say the tariffs already are hurting their bottom lines, even though the White House has granted some exemptions and the full plans have yet to come into force.

General Motors recently told investors it paid more than $1bn in tariffs from the beginning of April through the end of June, despite carve-outs for car parts from Mexico and Canada. Tesla spent an extra $300m.

Toymakers Hasbro and Mattel expect tariffs to cost tens of millions this year and have reduced their sales forecasts, while aerospace manufacturer RTX, formerly Raytheon, said the measures would cost it $500m, after mitigation efforts.

Getty Images Mary Barra in white shirt and black suit jacket with white trim gestures while speaking to a man in glasses in front of a background reading "World Economy Summit".Getty Images

General Motors CEO Mary Barra speaks in April at a summit in Washington, DC

Executives in some industries, like steel, say the new protections will boost domestic demand for their products. Labor unions have backed parts of Trump's plans, too.

But economists still expect the levies to lead to slower growth in the US, as company profits take a hit. Firms must then cut back on investing or risk hurting sales by raising prices, or both.

Waza, a Los Angeles shop that employs about 30 people in the US selling Japan-made products like kitchen knives and incense, has already started raising prices 10% to 20%.

Executive Vice-President Anri Seki said sales were holding up and, after months of uncertainty, she hoped the business would be able to move forward.

But the back-and-forth has pushed the firm to consider looking outside the US to expand.

They made America's clothing. Now they are getting punished for it.

The US-EU trade deal in numbers - how it compares to UK deal

Despite efforts in Japan and the US to sell a deal on a 15% tariff as positive, she said the outcome was disappointing.

"It just feels unfair," she said. "It's really hard for everyone to see what is the good ending point."

Recently, Goldman Sachs analysts estimated the tariffs would lower US growth by 1 percentage point this year.

Still, shares in the US have soared to new highs, as fears that gripped financial markets after Trump's so-called Liberation Day tariff announcement in April have abated.

Consumer confidence has picked up, prices have remained contained and the job market is still chugging.

Some of that is from earlier uncertainty being resolved, said Ernie Tedeschi, director of economics at the Budget Lab at Yale University, who predicts the levies will shave about 0.8 percentage points off growth this year.

"There is a vast valley between 'good' and 'recession'," he said. "There's this middle ground of 'not great'...And I think that is what we're looking at with tariffs."

But Tim Quinlan, senior economist at Wells Fargo, said people may be underestimating risks.

Consumer spending on discretionary services, like taxi rides or air travel, slipped in the first five months of the year – something that has only happened during or immediately after recessions, he noted.

He said that did not necessarily mean "a recession is around the corner", but cautioned it had "raised doubts about the ability of the consumer to continue to underpin the economy".

With stockpiles of goods that pre-date the tariffs dwindling and 1 August looming, the full effects of the measures will be felt in months ahead.

"People have sort of moved on, but now they're going to be reinstated in August it's going to be right back where we were," said Julie Robbins, chief executive of Earthquaker Devices, an Ohio-based manufacturer of guitar pedals.

The business, which employs about 34 people, has held off hiring and delayed purchases this year, as its profits erode and costs climb. It plans to raise prices, but isn't sure how much.

Already, sales outside the US – about 40% of the business – have dropped, which Ms Robbins attributes to backlash against Americans, at least partly over tariffs.

"I view the tariffs and the current trade war policy as the largest threat to our business," she said. "There are so many ways this could go sideways."-BBC

China offers parents $1,500 in bid to boost births

Parents in China are being offered 3,600 yuan (£375; $500) a year for each of their children under the age of three in the government's first nationwide subsidy aimed at boosting birth rates.

The country's birth rate has been falling, even after the ruling Communist Party abolished its controversial one-child policy almost a decade ago.

The handouts will help around 20 million families with the cost of raising children, according to state media.

Several provinces across China have piloted some form of payouts to encourage people to have more children as the world's second largest economy faces a looming demographic crisis.

The scheme, which was announced on Monday, will offer parents a total of up to 10,800 yuan per child.

The policy will be applied retroactively from the start of this year, Beijing's state broadcaster CCTV said.

Families with children born between 2022 and 2024 can also apply for partial subsidies.

The move follows efforts by local governments to boost birth rates in China.

In March, Hohhot - a city in the northern region of China - started offering residents up to 100,000 yuan per baby for couples with at least three children.

Shenyang, a city northeast of Beijing, offers 500 yuan a month to local families with a third child under three.

Last week, Beijing also urged local governments to draft plans for implementing free preschool education.

The country is among the world's most expensive places to have children, in relative terms, according to a study by China-based YuWa Population Research Institute.

Raising a child to the age of 17 in China costs an average of $75,700, the study found.

In January, official figures showed that China's population fell for a third year in a row in 2024.

China recorded 9.54 million babies born in 2024, according to the National Bureau of Statistics.

That marked a slight increase from the year before but the country's overall population continued to shrink.

The country's 1.4 billion population is also ageing fast, adding to Beijing's demographic concerns.-BBC

Six things that may cost Americans more after Trump's tariffs

In April, US President Donald Trump announced he was introducing sweeping new tariffs, extra taxes that importing firms have to pay if they bring in goods from abroad.

Since then some of the US's major trading partners including the UK, Japan and now the European Union have negotiated down the headline tariff rates. The EU's agreement cuts in half the 30% tariff Trump had threatened.

But other countries are still facing higher rates, including Canada, which will see tariffs rise to 35% on 1 August if no deal is reached.

Trump says the extra tariffs will generate billions in revenue and encourage firms to manufacture in the US to avoid the taxes.

But there are already signs that the levies may be pushing up prices for American consumers and economists argue that there is still some way to go before American shoppers feel the full force of the rises.

So what products are likely to become more expensive?

Clothing and footwear

The vast majority of clothing and footwear sold in the US is made in other countries, including the manufacturing hubs of Vietnam, China and Bangladesh.

Though Trump has backed down from the steepest tariffs he initially threatened, the taxes on imports from those countries are still sharply elevated.

Under current plans, the US is charging at least 30% on goods made in China, with plans to start collecting taxes of 19% on items from countries such as Vietnam and Indonesia on 1 August. Trump has outlined tariffs as high 35% for goods from Bangladesh.

The measures are putting pressure on major US department stores like Target and Walmart, where Americans often turn for affordable clothing, as well as big-name apparel brands, such as Levi Strauss and Nike, which have said they will raise prices for certain items.

After months of declines, apparel prices jumped 0.4% from May to June. Overall, the Budget Lab at Yale, which monitors the impact of government policy on the economy, expects clothing prices overall to surge a shocking 37% in the short run.

Coffee, olive oil and other food

Almost all of the coffee consumed in the US comes from outside the country, meaning it could soon become a bigger burden on Americans' wallets.

Coffee from Brazil is facing 50% tariffs, Vietnamese coffee is likely to be subject to a 20% tariff.

With 15% tariffs in place on products from European Union nations, the prices of shelf staples such as Italian, Spanish or Greek olive oil could rise.

Trump has separately raised tariffs against Mexico, a major supplier of items such as tomatoes and avocados, though he has granted some key exemptions to those levies.

Still the Budget Lab at Yale estimates that food prices will rise 3.4% in the short-run, with fresh produce seeing a particularly sharp jump initially.-BBC

India's AI-driven tech firings could derail middle class dreams

Companies like TCS rely on cheap skilled labour to produce software for global clients at low costs

India's showpiece software industry is facing a moment of reckoning.

The country's biggest private sector employer Tata Consultancy Services (TCS) - also its largest IT services company - has announced it will cut more than 12,000 jobs at middle and senior management levels. This will reduce the firm's workforce by 2%.

The Mumbai-headquartered software behemoth employs over half-a-million IT workers and is considered a bellwether for business sentiment across India's $283bn software industry. It forms the backbone of formal, white-collar employment in the country.

The decision, TCS says, was taken to make the company "future ready" as it invests in new areas and deploys artificial intelligence at scale amid seismic disruptions in its traditional business model.

Companies like TCS have, for decades, relied on cheap skilled labour to produce software for global clients at lower costs, but this has been upended by AI automating tasks and clients demanding more innovative solutions, rather than just cost savings on manpower.

"A number of re-skilling and redeployment initiatives have been under way," TCS said in a statement, adding it will be "releasing associates from the organisation whose deployment may not be feasible".

"Across IT companies, people managers are being let go while the doers are being kept to rationalise the workforce and bring in efficiencies," Neeti Sharma, CEO of staffing firm TeamLease Digital told the BBC.

She added that "there's been a massive spike" in emerging tech hiring in areas such as AI, cloud, data security, but it is not at the same intensity at which people are being fired.

TCS's announcement also highlights the sharp "skills mismatch" in the country's software industry, experts say.

As generative AI leads to a rapid enhancement of productivity, "this technology shift is forcing businesses to reassess their workforce structure and analyse if resources should be redirected toward roles that complement AI capabilities," Rishi Shah, economist with Grant Thornton Bharat told the BBC.

According to the industry body Nasscom, India needs a million AI professionals by 2026, but not even 20% of the country's IT professionals are AI-skilled.

While up-skilling spends by tech companies have significantly spiked as they rush to prepare a new pool of AI talent for the future, those without the requisite skills are being shown the door.

Besides the structural shifts brought about by the advent of AI, TCS's announcement also "reflects the broader growth challenges being faced by India's IT sector", according to global investment banking firm Jeffries.

"Aggregate net hiring at industry level has been weak since FY22 [financial year 2022], mainly due to the prolonged moderation in demand outlook," Jeffries said in a note.

Demand for IT services in the US – which contributes to half of the revenue for Indian software majors - has been impacted by Donald Trump's tariffs.

While tariffs chiefly target physical goods, analysts say companies are pausing on discretionary IT spending as they reconsider the economic impact of tariff uncertainties and their global sourcing strategies.

Rising AI adoption is also driving US companies to negotiate lower costs, forcing people heavy IT firms to work with fewer employees, according to Jeffries.

The ripple effects of this have begun to be felt in cities like Bengaluru, Hyderabad and Pune – once epicentres of India's IT boom. Some 50,000 people in the industry lost their jobs last year, according to one estimate. And there was a 72% drop in net employee additions at India's top six IT services companies.

India's software revolution spawned new boom towns like Bengaluru

All of this could have cascading effects on India's broader economy, which has struggled to create jobs for the millions of young graduates that enter the workforce every year.

In the absence of a strong manufacturing sector, these software companies - which made India the world's back office in the 1990s - were the preferred employment option for hundreds of thousands of new IT workers. They birthed a new, affluent middle class, spawning growth in many cities and fueling demand for cars and homes.

But as stable, well-paying jobs shrink, there are now questions over India's services-led economic boom.

Until just a few years ago, India's IT majors would absorb 600,000 fresh graduates every year. In the last two years, that number has dramatically fallen to about 150,000, according to TeamLease Digital.

Other emerging sectors such as financial technology startups and GCCs (global capability centres) – which are off-shore units of multinational companies that perform supporting tasks like IT, finance or research and development - are absorbing the rest, but at least "20-25% of fresh graduates will have no jobs," says Ms Sharma.

She adds that the "GCCs will never match the volume of hiring that the IT companies did".

Several top business leaders in India have begun flagging the economic consequences of these trends.

India's trimmed down IT sector could "negatively impact many allied services and industries, crash real estate and give a big blow to premium consumption," D Muthukrishnan, one of south India's largest distributor of mutual-funds wrote on X, reacting to TCS's announcement.

A few months ago Arindam Paul, entrepreneur and founder of the motor technology company Atomberg, warned of the potentially crippling impact of AI on India's middle class in a LinkedIn post.

"Almost 40-50% white collar jobs that exist today might cease to exist," Paul wrote. "And that would mean the end of the middle class and the consumption story."

How quickly Indian tech giants adapt to the gamut of disruptions being brought by the AI revolution will decide whether the country can retain its edge as a global technology player. And whether it can expand its consuming middle-class that can keep its GDP growth on track.-BBC

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