Trump raises tariffs on India to 50%

US President Donald Trump has escalated tariffs on Indian goods to 50% total (25% baseline plus an additional 25% penalty) over India’s purchases of Russian oil, making India one of the highest-taxed US trading partners, placing India above China which is currently facing a 30% tariff. Brazil is the only other country facing a 50% tariff rate . India called the tariffs “unfair, unjustified and unreasonable,” arguing their oil imports ensure energy security of 1.4 billion people.

US President Donald Trump has announced plans to impose a 100 percent tariff on imported semiconductor chips, aiming to encourage companies to manufacture within the United States. Firms that already build or commit to building semiconductor facilities domestically will be exempt from the tariff. This policy is designed to boost US chip production and reduce dependence on Asian suppliers. Major international companies like TSMC, Samsung, and Apple have secured exemptions through large investments in US factories.

Today’s Economic Data and events

16:30 US Initial Jobless Claims Forecast: 222k

Fixed Income

US Treasury yields saw modest activity. The 2-year Treasury yield closed flat at 3.716%, rising 3 basis points, while the 10-year yield ended at 4.2461%, up less than 1 basis point.

FX

The dollar index (DXY) closed down 0.61% at 98.177. The Euro strengthened, rising 0.03% at 1.166, while GBP gained 0.44% to close at 1.3357. The Japanese yen appreciated 0.36% to 147.62 against the dollar.

Equity Markets

Major US stock indices advanced on August 6 on the back of positive earnings report. The S&P 500 rose 0.73% to close at 6,345.06, while the Dow Jones gained 0.18% to 44,193.12. The NASDAQ jumped 1.21% to 21,169.42.

Locally, DFM closed down 0.17%, ADX closed almost flat, and Saudi Arabia’s Tadawl closed 0.23% higher.

Commodities

Oil prices continued it’s declining streak, down for the fifth consecutive day. Brent crude fell 1.11% to close at USD 66.89/b and WTI dropped 1.24% to 64.35/b.

Gold prices fell 0.56% to USD 3,369.36 per ounce. Silver also declined, dropping 0.26% to close at 37.87 per ounce