The US Federal Reserve, led by chair Jerome Powell, kept benchmark rate unchanged in 4.25-4.5% target range at the FOMCmeet on Wednesday. “The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook has increased further.The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen,” the FOMC statement read.“Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid. Inflation remains somewhat elevated,” the release read.“In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities.The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective,” the central bank added.The Federal Reserve was confronted with a challenging decision regarding its response to President Donald Trump‘s tariff implementation: Should it maintain high interest rates to address inflation, remain inactive, or reduce rates to boost growth and employment?Market observers and financial experts had largely anticipated that the Fed will maintain current rates, adopting a wait-and-see approach to evaluate the economic impact of the new tariffs before implementing any changes.The US central bank operates independently under a Congressional mandate to ensure price stability and optimal employment levels, primarily through adjustments to its key short-term lending rate.“It’s an unfavorable mix for the Federal Reserve,” Nationwide chief economist Kathy Bostjancic had told AFP.“They’re going to see upward price pressures at the same time when economic growth is slowing,” she said. “And then they’ll have to put a weight on what do they believe?”Last month, Trump implemented substantial tariffs on Chinese imports and reduced “baseline” duties of 10 percent on products from most nations, leading to several weeks of market volatility.The administration imposed increased duties on numerous trading associates, subsequently halting them until July to allow the United States sufficient time to revise current trade agreements.Recent economic indicators suggest a decline in the first quarter, with both consumers and companies increasing their import purchases before the implementation of new regulations.Simultaneously, employment figures remained near record-low levels, whilst inflation rates moved towards, but stayed marginally higher than, the Federal Reserve’s established two percent objective.

Aerospace companies are bracing for a potential escalation in trade tensions as the European Union prepares to target Boeing jets with retaliatory tariffs in response to existing US import duties on European goods, including Airbus aircraft, according to industry sources.The anticipated measures, expected to be announced Thursday by the European Commission, come as part of a broader plan to counter 10% US tariffs impacting around $100 billion in European exports. The move would mark the first significant tariff action between the EU and US aerospace sectors since 2021, reviving trade friction in the $150 billion global aircraft industry.EU Trade Commissioner Maros Sefcovic, speaking in Singapore on Wednesday, confirmed news agency Reuters that the bloc would unveil its planned counter-measures if ongoing negotiations with Washington fail to ease tensions. The Financial Times earlier reported that the EU intends to include civil aircraft—namely Boeing jets—on its tariff list.The European Commission and Boeing declined to comment on the developments.Currently, the EU faces 25% US tariffs on steel, aluminum, and automobiles, along with 10% reciprocal tariffs on other goods, including aircraft—a figure that could double to 20% after US President Donald Trump’s temporary 90-day suspension expires on July 8.The stakes are high for European airlines, many of which have placed large orders with Boeing. A potential hike in aircraft prices due to new levies could upend fleet planning and financial forecasts.Despite the looming tariff clash, aerospace rivals Boeing and Airbus have adopted a more unified stance compared to earlier disputes. During the 2020–2021 trade war centered on World Trade Organization subsidy cases, both companies found themselves at the heart of tit-for-tat tariffs. Now, industry leaders on both sides of the Atlantic are urging a return to tariff-free aerospace trade.Airbus CEO Guillaume Faury recently advocated for restoring duty-free trading, warning that escalating tariffs would leave “only losers” in the industry. He pointed to the previous tariff sequence that ultimately resulted in a truce and emphasized the need to avoid repeating that cycle.Boeing CEO Kelly Ortberg echoed similar sentiments in a Congressional hearing last month, reiterating the company’s commitment to free trade and calling for a resolution to the growing trade dispute.The broader aerospace sector has pushed for the revival of a 1979 international agreement among 33 countries that exempted aircraft and parts from tariffs—an arrangement that once underpinned global aerospace trade.Yet, the uncertainty has already begun to impact market behaviour. Ireland’s Ryanair, a major Boeing customer, has threatened to cancel hundreds of aircraft orders if new tariffs drive prices higher, warning it would seek to hold Boeing contractually accountable for any fallout from European countermeasures. However, with Airbus production slots sold out for much of the decade and strict terms limiting cancellations, analysts say carriers may find little room to maneuver.In the US, Delta Air Lines has signaled it may delay deliveries of Airbus jets built in Europe should the trade conflict persist, underscoring the ripple effects tariffs could have across the global aviation market.

India’s total merchandise trade with the U.K. has grown steadily over the years, touching $19.3 billion in 2024-25 up to January 2025. However, import growth has outpaced that of exports by a significant margin.

Notably, trade in both directions is highly concentrated in just a few sectors, data from the Ministry of Commerce and Industry shows.

An analysis by The Hindu shows that just five product categories — electrical machinery (15.3%), nuclear reactors, boilers & machinery (11.6%), mineral fuels and oils (9.1%), pearls, precious & semi-precious stones (7%), and pharma products (5.4%) — together make up nearly half of what India exports to the U.K. The largest category in this, machinery and engineering goods, is likely to see strong growth following implementation of the Free Trade Agreement (FTA) with the U.K. announced on Tuesday, according to industry participants.

“With the FTA in place, engineering exports to the U.K. are projected to nearly double over the next five years, reaching around $7.55 billion by 2029-30,” said Pankaj Chadha, chairman of the Engineering Exports Promotion Council of India. “The U.K. is currently India’s sixth largest engineering export destination.” The import situation is even more concentrated. The top five product categories — pearls, precious & semi-precious stones (30.5%), nuclear reactors, boilers & machinery (17.4%), electrical machinery (7.2%), iron and steel (5%), and aluminium and its articles (4.5%) — together make up 65% of India’s imports from the U.K. India’s total trade with the U.K. stood at $12.2 billion in 2016-17, the earliest year for which the ministry provides data. Of this, India’s exports stood at $8.5 billion and imports were $3.7 billion.

This has grown significantly over the years. Total trade, at $19.3 billion in 2024-25 up to January 2025, is nearly 60% higher than its level in 2016-17. Exports have grown 41% to $12 billion.

However, over this period, imports grew nearly 100% to $7.3 billion.