US August CPI Rises 2.9%; Mexico Imposes 50% Tariff on Chinese Autos
Key Takeaways
- US August CPI rose 2.9%, fueling Fed rate cut bets and driving stocks higher.
- Mexico imposed a 50% tariff on Chinese autos to boost its local industry.
- Russia considers raising VAT from 20% to 22% to address budget deficits.
- ECB holds rates at 2%, citing Eurozone debt and governance concerns.
- Manufacturing talent shortage could cost $1 trillion globally by 2030: KNOLSKAPE.
Top Stories
August 2025 US CPI rises 2.9% YoY; markets rally amid Fed rate cut bets
On September 11, 2025, US August CPI rose 2.9% year-over-year, with core CPI at 3.1%, fueling expectations of a Fed rate cut. This data drove US stocks to record highs and pushed 10-year Treasury yields below 4%, reflecting market optimism.
Mexico enacts 50% tariff on Chinese autos to boost local industry
On September 10, 2025, Mexico announced a 50% tariff on Chinese automobiles as part of a $52 billion tariff overhaul to strengthen domestic production and economic growth, reflecting shifting trade policies.
Russia proposes VAT increase from 20% to 22% amid budget shortfall
On September 10, 2025, Russia discussed raising VAT from 20% to 22% to address budget deficits caused by military spending, with VAT comprising 70% of budget revenues and expected to generate about 1 trillion rubles.
ECB maintains key rates at 2% amid Eurozone debt and governance worries
On September 11, 2025, the European Central Bank kept key interest rates steady at 2%, citing concerns over France's high debt and governance issues that risk a new Eurozone debt crisis.
Manufacturing talent shortage could cost $1 trillion globally by 2030
On September 11, 2025, KNOLSKAPE reported a projected $1 trillion global economic loss by 2030 due to a manufacturing talent shortage, with 2.4 million unfilled jobs expected by 2028, highlighting AI's impact on workforce skills.
Market Insights
US stocks hit record highs led by tech amid Fed rate cut expectations
On September 11, 2025, US stock indices including the Dow surpassed record highs, driven by strong tech earnings and investor anticipation of Federal Reserve rate cuts. The rally defied typical September seasonality, signaling bullish market sentiment.
Asian equities rally after US market highs and Fed rate cut signals
On September 12, 2025, Asian equity futures rose following US record stock closes and signs of cooling US labor market and steady inflation. This broad rally reflects growing expectations of Federal Reserve rate cuts.
Oil prices drop 2% amid OPEC+ output rise and weak US demand
On September 11, 2025, oil prices declined 2% as OPEC+ increased supply faster than expected and US demand weakened, with Brent settling at $66.37 and WTI at $62.37.
Global markets buoyed by US record highs and Fed rate cut expectations
Between September 10-11, 2025, US stocks reached record highs driven by Fed rate cut hopes, boosting Asian and Brazilian markets, with strong tech and AI sector performance and mixed domestic economic factors.
Indian indices rise modestly amid mixed corporate and regulatory news
On September 11, 2025, Indian stock indices closed higher with Nifty at 25,005.50 and Sensex at 81,548.73, influenced by sector-specific gains and regulatory developments.
Policy Watch
US seeks G7 tariff hikes on China and India for Russian oil purchases
On September 11, 2025, US officials revealed plans to urge G7 countries to raise tariffs on China, India, and Japan due to their purchases of Russian oil linked to the Ukraine conflict.
Growth Commission links EU slowdown to structural issues, proposes Trump-like reforms
On September 11, 2025, the Growth Commission attributed a 20-year EU economic slowdown to public sector size, energy costs, labor rigidity, and weak entrepreneurship, recommending reforms aligned with US deregulatory policies to boost growth and trade.