WASHINGTON: Leaders of the G7 advanced economies on Monday pledged to use all their tools to safeguard the economy and help workers hurt by the coronavirus pandemic.
As the outbreak caused more countries to shut down and brought the global economy to a screeching halt, the leaders stressed the need to join forces and move quickly to address the damage.
“We resolve to coordinate measures and do whatever it takes, using all policy tools, to achieve strong growth in the G7 economies and to safeguard against downside risks,” the leaders said in a statement following an emergency videoconference.
The measures are aimed to “support immediately and as much as necessary the workers, companies, and sectors most affected,” the statement said.
In addition, the leaders instructed their finance ministers to consult weekly to implement policy measures and “develop further timely and effective actions.”
They noted the disruption to supply chains due to transportation shutdowns, as well as the harm to families.
The leaders called on global institutions like the International Monetary Fund to “swiftly” deploy financial assistance to countries that need it.
“We are committed to working together with resolve to implement these measures to respond to this global emergency,” they said.
And they said they are “determined not only to restore the level of growth anticipated before the COVID-19 pandemic but also to build the foundation for stronger future growth.”
G7 pledge to ‘do whatever it takes’ to safeguard economy
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G7 pledge to ‘do whatever it takes’ to safeguard economy
- ‘We resolve to coordinate measures and do whatever it takes, using all policy tools, to achieve strong growth in the G7 economies and to safeguard against downside risks’
- Measures are aimed to ‘support immediately and as much as necessary the workers, companies, and sectors most affected’
US trade policy uncertainty sees muted response from markets
RIYADH: President Donald Trump renewed his condemnation of the US Supreme Court on Monday after it ruled against his sweeping tariff program last week, vowing to turn to other powers and licenses but giving no details.
The Supreme Court, in a 6-3 ruling on Friday, voided most of the tariffs Trump imposed in 2025, finding that the emergency law he relied on did not allow the imposition of the levies.
Trump said on Saturday he would raise a temporary tariff from 10 percent to 15 percent on US imports from all countries, the maximum level allowed under the law, a day after the court ruled he had exceeded his presidential authority when he imposed an array of higher rates under an economic emergency law.
"The court has also approved all other Tariffs, of which there are many, and they can all be used in a much more powerful and obnoxious way, with legal certainty, than the Tariffs as initially used," he wrote in a social media post.
US stock index futures slipped on Monday as traders reacted to the latest twist in the US’s economic policy.
At 12noon GMT, Dow E-minis were down 162 points, or 0.33 percent, Nasdaq 100 E-minis were down 129 points, or 0.51 percent, and S&P 500 E-minis were down 23.75 points, or 0.34 percent.
Most megacap and growth stocks were lower in premarket trading, though Alphabet bucked the trend with a 0.3 percent gain after rising around 4 percent on Friday.
“It’s really hard from a business standpoint when you are at a company to know how do you plan if you’re not even sure about suppliers, supply chains and what the tariffs are going to look like,” said Arthur Laffer Jr., president of Laffer Tengler Investments, according to Reuters.
“That’s a huge concern for corporate America and why it was really important to get that hammered out and ironed out as fast as possible, so that companies know what the playing field really looks like, and they can plan accordingly,” he added.
All three main stock indexes clocked weekly gains on Friday as markets took the Supreme Court’s decision in stride, with the Nasdaq snapping a five-week losing streak.
Other stock markets across the world greeted the latest wave of uncertainty with a muted response.
In the Gulf region, Saudi Arabia’s main market — which had been closed on Sunday due to a national holiday — ended the day up 0.34 percent.
Dubai’s main share index closed up 1.82 percent, led by a 3.64 percent gain in blue-chip developer Emaar Properties and a 2.92 percent leap in Emirates NBD Bank.
In Abu Dhabi, the index ended the session up 0.55 percent, with Americana Restaurants International leading the gainers with its share price surging 7.73 percent.
Qatar’s index closed up 1.08 percent, driven by banking shares, including a 0.43 percent uptick in Qatar National Bank, the region’s largest lender.
Other global markets faced a mixed picture, with the UK's FTSE 100 subdued on Monday.
The blue-chip index was up 0.1 percent at 12:00noon GMT, after closing at record highs last week. For the UK, the tariff rate has increased from 10 percent to 15 percent,
Unicredit analysts noted, following Trump's latest announcement.
Vijay Valecha, chief investment officer at Century Financial said the possible US tariff increase from 10 percent to 15 percent “ has brought trade tensions back into focus, tempering the optimism seen after the recent Supreme Court tariff ruling.”
He added: “Markets are now reassessing the economic impact of higher import costs, possible retaliation from trade partners, and the broader implications for global growth.”
