Politics

Political news that affects economic policies and markets.

Politics
Trump: 100% chip tariff on foreign-made semiconductors
United States President Donald Trump has announced plans to impose a 100% tariff on all imported semiconductors and chips, unless the companies behind them are committed to manufacturing in the United States. Speaking from the Oval Office on Wednesday afternoon, Trump said, “We’re going to be putting a very large tariff on chips and semiconductors.” The measure aims to boost domestic production of critical technologies and reduce reliance on foreign suppliers. The new tariff, set at approximately 100%, will apply to “all chips and semiconductors coming into the United States”, the president confirmed. However, he made it clear that companies producing domestically, or those actively building U.S.-based manufacturing operations, would be exempt. “But the good news for companies like Apple is if you’re building in the United States or have committed to build, without question, committed to build in the United States, there will be no charge,” Trump said. “So in other words, we’ll be putting a tariff on of approximately 100% on chips and semiconductors. But if you’re building in the United States of America, there’s no charge.” The announcement follows Apple’s confirmation that it will spend an additional US$100
Politics
Trump announces timeline for semiconductor tariffs
U.S. President Donald Trump told CNBC’s Squawk Box that he will unveil new tariffs on semiconductors in the coming week. “We’re going to be announcing on semiconductors and chips, which is a separate category, because we want them made in the United States,” Trump said. The semiconductor industry is set to generate US$700 billion in global sales, and the Commerce Department has been investigating the market since April to set the stage for tariffs. Levies on imported chips are set to impact tech giants like Microsoft, OpenAI, Meta Amazon with sharp cost increases as they plan to spend billions on the purchase of semiconductors to advance their artificial intelligence business. Trump said the tariffs aimed to boost domestic manufacturing and commended Taiwan Semiconductor Manufacturing Co.’s plans to expand its U.S. presence. “You know, we have the biggest in the world, as you know, from Taiwan is coming over and spending $300 billion in Arizona, building the biggest plant in the world for chips and semiconductors,” he said. In the same interview, Trump also announced that there will be updates to the pharmaceutical tariffs. “We’ll be putting a initially small tariff on pharmaceuticals, but in one year — one an
Politics
European Union pushes back US tariff retaliation
The European Union announced Monday it will suspend for six months its planned countermeasures against U.S. tariffs, which were set to kick in Thursday. This comes after the bloc agreed to that eye-watering €750 billion energy purchase commitment and €600 billion investment pledge as part of July's messy trade framework with Trump. European stocks initially cheered the news, with Germany's DAX up 0.7% and France's CAC 40 climbing 1.1% - though gains fizzled as investors realised the deal's limitations.Markets aren't exactly thrilledThe suspension covers €21 billion of U.S. exports that would've faced retaliatory duties ranging from 10% to 25% - think bourbon, Harley-Davidsons, and farm goods. But don't mistake this for surrender from Brussels. Bank of America wasn't mincing words when it called the broader EU-U.S. deal "bad for the economy" while grudgingly admitting it "pares tail risks and reduces uncertainty". The framework still whacks most EU goods with 15% tariffs, including the bloc's massive €155 billion pharmaceutical exports - nearly double what companies paid before Trump's return. Perhaps more than any other sector, European carmakers are feeling the pinch. Stellantis, Porsche and Mercedes-Benz jum
Politics
Trump fires Labor Statistics head after weak jobs report
United States President Donald Trump has fired the head of the Bureau of Labor Statistics (BLS), after its new jobs report revealed a slump in hiring. The U.S. added 73,000 jobs in July, fewer than expected, with May and June’s jobs numbers revised downwards by a total of 258,000. Trump accused BLS commissioner Erika McEntarfer of “rigging” the jobs report numbers, without evidence. “In my opinion, today’s Jobs Numbers were RIGGED in order to make the Republicans, and ME, look bad,” Trump wrote on Truth Social. “This rationale for firing Dr. McEntarfer is without merit and undermines the credibility of federal economic statistics that are a cornerstone of intelligent economic decision-making by businesses, families, and policymakers,” wrote the Friends of the Bureau of Labor Statistics association, including former BLS commissioners Erica Groshen and William Beach. “BLS operates as a federal statistical agency and is afforded autonomy to ensure the data it releases are as accurate as possible. To politicise the work of the agency and its workers does a great disservice not only to BLS but to the entire federal statistical system which this country has relied on for almost 150 years.” BLS deputy commissioner William
Politics
Meat and potatoes diplomacy delivers win for Australia
Australia has secured the lowest possible tariff rate of 10% under President Donald Trump's sweeping reciprocal tariff regime, positioning exporters with a crucial competitive advantage, as higher levies devastate rival nations. The executive order, effective 1 August, excludes Australia from Annex I, confirming its continued 10% baseline rate while countries such as Canada face tariffs as high as 35% and New Zealand confronts a 15% levy. The European Union agreed to accept a 15% tariff rate alongside $750 billion in U.S. energy purchases and $600 billion in domestic investments by 2028.Market dynamics shift in Australia's favourAustralian Trade Minister Don Farrell described the outcome as "a vindication" for the government's diplomatic approach, stating that "Australian products are now more competitive into the American market" with “wine, beef, lamb, wheat in a relative sense cheaper into the United States”. The tariff differential creates immediate market opportunities - especially for wine and beef. Aussie wine exporters could capitalise on increased levies on European rivals, while beef producers gain ground against Brazilian competitors facing higher tariffs. Brazil's 50% tariff effectively renders Brazilian

Politics
Parliament passes bill slashing student debt by 20%
Australia’s Parliament has passed legislation enacting a one-off 20% reduction in student loan balances, fulfilling a key election commitment by the Albanese government. The measure applies to all Higher Education Loan Program (HELP) debts — including HECS-HELP, FEE-HELP, VET Student Loans, and Apprenticeship Support Loans — held as of 1 June 2025. The Australian Taxation Office (ATO) will automatically apply the reduction, with no action required from borrowers. The average student with a debt of $27,600 will see approximately $5,520 wiped from their balance. In addition to the debt cut, the legislation raises the minimum income threshold for compulsory repayments from $54,435 to $67,000, effective from the 2025–26 financial year. A new marginal repayment system will replace the flat-rate model, meaning repayments will be calculated only on income above the threshold. For example, someone earning $70,000 will now repay $450 annually — down from $1,750 under the previous system. These changes aim to reduce repayment burdens and improve affordability for early-career graduates. The legislation was introduced as the first order of business in the new parliamentary session and passed with support from both the Gr
Politics
UK threatens Palestinian recognition by September
British Prime Minister Keir Starmer has announced that the United Kingdom will formally recognise a Palestinian state at the United Nations General Assembly in September, unless Israel takes “substantive steps” to end the humanitarian crisis in Gaza. These steps include agreeing to a ceasefire, halting annexation plans in the West Bank, and committing to a long-term peace process that supports a two-state solution. Starmer made the statement following an emergency Cabinet meeting and discussion with international leaders. The U.K.’s conditions also demand that Hamas release all hostages, disarm, and accept no role in Gaza’s governance. Starmer stressed the urgency of the situation, citing images of starving children and widespread suffering in Gaza as driving factors behind the decision. The U.K. aims to see at least 500 aid trucks enter Gaza daily and has joined international efforts to increase humanitarian deliveries. Israel has strongly condemned the announcement, with Prime Minister Benjamin Netanyahu accusing the U.K. of “rewarding Hamas' terrorism” and warning that recognition could embolden jihadist groups. Domestically, Starmer faces criticism from Conservative leaders and some Labour figures. However
Politics
Maxwell offers testimony to Congress - seeks immunity
Ghislaine Maxwell, convicted accomplice of Jeffrey Epstein, has offered to testify before the United States House Oversight Committee — but only under strict conditions. In a letter sent by her lawyers, Maxwell demanded formal congressional immunity, advance access to all questions, and a venue outside her Florida prison. She also insists testimony be postponed until after the U.S. Supreme Court rules on her pending appeal and a separate habeas petition. If these terms are not met, Maxwell will invoke her Fifth Amendment rights. The Oversight Committee, which subpoenaed Maxwell for an 11 August deposition, rejected the immunity request. Committee officials stated they would respond formally, but would not consider protection from prosecution. Maxwell’s legal team argues that testifying now could compromise her constitutional rights and taint future legal proceedings. They also criticised public comments from lawmakers that allegedly prejudged her credibility without reviewing supporting documentation. In a final appeal, Maxwell’s attorneys suggested she would be “willing and eager” to testify publicly if granted clemency by President Donald Trump. Trump acknowledged he can pardon her, but said no formal
Politics
Starmer shares UK's Middle East peace plan with Trump
The United Kingdom's Prime Minister Keir Starmer shared the U.K.-led peace plan for the Middle East with United States President Donald Trump during the President’s visit to Scotland. Starmer has worked on the plan with France and Germany over the weekend during an emergency call with the countries' leaders, Emmanuel Macron and Friedrich Merz. “The Prime Minister welcomed the President’s efforts to secure this, and shared the plans he is working on with other European leaders to bring about a lasting peace,” a No 10 spokesperson said. While specifics of the plan have not been released yet, Sanders said the proposal would also be presented to allies, including Arab states, in the coming days. Starmer said the British are “revolted” by the images they’re seeing in Gaza and urged Trump to help set up new food centres in Gaza without fences after the U.S.-led arrangement had led to the killing of many Palestinians. “It’s a humanitarian crisis, it’s an absolute catastrophe,” Starmer said. “Nobody wants to see that. I think people in Britain are revolted at seeing what they’re seeing on their screens, so we’ve got to get to that ceasefire.” Israel has announced that it would suspend fighting in Gaza in three areas f