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In the top news globally, US President Donald Trump has followed through on recent threats and raised tariffs on steel and aluminium imports to a flat 25% “without exceptions or exemptions”, in a move that aims to bolster the struggling industries in the US, but which increases the risk of a multi-front trade war.
Trump signed proclamations raising the US tariff rate on aluminium to 25% from his previous 10% rate and eliminating country exceptions and quota deals as well as hundreds of thousands of product-specific tariff exclusions for both metals. A White House official confirmed that the measures would take effect on March 4. That’s based on a Reuters report.
The tariff rate will rise back to 25% on steel and aluminium imports from Canada, Brazil, Mexico, South Korea and other countries that had been entering the US duty free under the carve-outs.
Trump’s latest tariff threats have ignited another surge in gold prices. In fact, the target of $3,000 per troy ounce that some had made for the end of this year is within sight. Spot gold climbed to a record $2,911.30 a troy ounce on Monday — its seventh record peak to date in 2025. Prices are already up nearly 11% so far this year, after a 27% gain in 2024.
In other major international news, Hamas has announced it would stop releasing Israeli hostages until further notice, over what the Palestinian militant group called Israeli violations of a ceasefire agreement in Gaza, raising the risk of reigniting the conflict.
Hamas was to release more Israeli hostages on Saturday in exchange for Palestinian prisoners and other Palestinians held in Israeli detention, as had happened over the past three weeks. US President Donald Trump said on Monday that Hamas should release all hostages held by the militant group in Gaza by midday Saturday, or he would propose cancelling the Israel-Hamas ceasefire and, in his words, “let hell break out.”
The US President’s comments came on a day of some confusion over his proposal for a US takeover of Gaza, once the fighting stops. He said Palestinians would not have the right to return to the Gaza Strip under his proposal to redevelop the enclave, contradicting his own officials who had suggested Gazans would only be relocated temporarily.
In news from the AI world — a consortium led by Elon Musk said yesterday it has offered $97.4 billion to buy the nonprofit that controls OpenAI. Musk’s bid is likely to heat up longstanding tensions with OpenAI CEO Sam Altman over the future of the ChatGPT maker. Altman promptly posted on X: “no thank you, but we will buy twitter for $9.74 billion if you want.”
US equities gained overnight despite the imposition of the tariffs. The Dow climbed 0.4%, while the S&P 500 and the Nasdaq rose 0.7% and 1%, respectively. And the early risers in the Asia Pacific region, too, have started positive this morning.
In news back home, the Reserve Bank of India has decided to conduct open market operation purchase auctions of government bonds worth Rs 40,000 crore, as compared to Rs 20,000 crore on Thursday, in view of the current liquidity conditions. That’s according to a statement released yesterday.
This is part of the RBI’s special liquidity announcement last month, where it decided to infuse liquidity worth Rs 60,000 crore through OMO purchases in three tranches of Rs 20,000 crore each. The latest move takes into account prevailing deficit conditions. After the interest rate cut last week, the central bank will be keen to ensure there is enough liquidity in the banking system, so as to ensure effective transmission of its monetary policy.
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