Tag Archive for: profits

Massive Job Growth Revision Raises Eyebrows: 911,000 Jobs Lost in Latest Labor Report

U.S. Job Growth Revised Significantly Downward Through March 2025, Highlighting Economic Uncertainty

The U.S. labor market shows a big drop in job growth. The data now cuts nonfarm payroll jobs by 911,000 for the 12 months before March 2025. Wall Street had seen a drop between 600,000 and one million jobs, so the new number is worse than experts expected.

What the Revision Reveals

The report uses complete sets of data. It pulls records from the Quarterly Census of Employment and Wages and tax returns. This method brings job numbers close together for a better view of the market. The drop of 911,000 jobs is more than 50% larger than the change seen last year. Last year’s revision was the biggest drop since 2009. The change shows a softening in the market that had not been seen before. Although the numbers go back 18 months, recent counts raise fresh concerns. The summer months of June, July, and August 2025 had a monthly payroll gain of only 29,000 jobs. That small increase does not help keep unemployment steady.

Sector-Wise Impact

The new job counts fall across many sectors. The most affected areas show these drops:

  • Leisure and Hospitality: down by 176,000 jobs
  • Professional and Business Services: down by 158,000 jobs
  • Retail Trade: down by 126,200 jobs

Most private sectors lose jobs in the new report. In contrast, transportation with warehousing and utilities see a slight rise. Government jobs fall as well, by about 31,000 compared with earlier numbers.

Political and Economic Context

Critics now question how the BLS gathers its data. The smaller job counts have raised hints at trouble. The issue caught the White House’s eye after previous low counts and unsatisfactory job reports. In July 2025, a report that cut the job number further led President Donald Trump to choose a new BLS leader. He picked economist E.J. Antoni from the Heritage Foundation over then-commissioner Erika McEntarfer. Yet, data in August still shows weakness. For example, the June job count now shows a drop of 13,000 jobs. This is the first decrease since December 2020. While monthly numbers come from quick surveys, these annual changes use large amounts of data. They serve as a clear sign of the economy’s state.

Looking Forward

The current figures are preliminary. More changes will come when the final report is released in February 2026. For example, the 2024 report first reduced job counts by 818,000 before settling at a 598,000 drop. Out of about 171 million workers, a loss of 911,000 jobs makes up nearly 0.6% of the total. Even a small percentage can have deep political and economic impact. Weak signs in the job market back President Trump’s calls for Federal Reserve rate cuts to boost the economy in these uncertain times.

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Trump’s Rolex Invitation at U.S. Open Raises Eyebrows Amid Swiss Tariff Controversy

Trump Attends U.S. Open with Rolex CEO Amid Newly Imposed Swiss Tariffs

In a surprising shift at the 2025 U.S. Open, President Donald Trump stood beside Rolex CEO Jean-Frederic Dufour. A 39% tariff hit Swiss imports just weeks earlier. The tariff now burdens Switzerland, home to the famed watchmaker.

Presence at the U.S. Open Final

On Sunday, September 7, 2025, Trump watched the men’s singles final. Italy’s Jannik Sinner and Spain’s Carlos Alcaraz competed at the USTA Billie Jean King National Tennis Center in New York City. Trump sat in a midcourt box run by Rolex. Rolex sponsors the tournament.

Trump brought family and top White House staff. Treasury Secretary Scott Bessent and Press Secretary Karoline Leavitt attended with him. NBC News noted the details. The Associated Press reported that Rolex invited Trump—a move that raised many questions after the tariff was set.

Tariff on Swiss Watch Imports

Weeks before the match, the Trump team set a 39% tariff on Swiss goods. This tax now affects Swiss watchmakers like Rolex. The rate is higher than taxes on imports from other European nations. The tariff came after trade talks with the U.S., the European Union, and the United Kingdom.

Market analyst Luca Solca from Bernstein wrote in a client note. He mentioned that a last-minute tariff deal did not occur. He predicted that Swiss watchmakers might push up prices to cover the new tax. Solca also noted that early shipments may keep prices steady for a few months.

Corporate Interaction and Strategic Alliances

Trump joined the exclusive suite run by Rolex. His meeting fits a pattern of connecting with major companies. After his return to office, he met with leaders from top tech firms at the White House. This step shows his plan to build ties with business.

This event marked Trump’s first U.S. Open visit since 2015. It signals his renewed interest in high-profile sports and business events.

About Rolex and U.S. Open Tickets

Rolex began in 1905 and is based in Geneva, Switzerland. It is known worldwide for its luxury watches. U.S. Open final tickets come at a high price. General admission starts at about $800, while seats near the action cost much more.

Summary:

  • President Trump joined the 2025 U.S. Open final with the Rolex CEO weeks after a 39% Swiss import tariff was set.
  • The tax may push up prices for Swiss watchmakers like Rolex.
  • Trump was with family and senior White House officials in a Rolex-run midcourt box.
  • This is Trump’s first U.S. Open visit since 2015 and fits his plan to meet with major companies after returning to office.

This link between politics and established brands like Rolex shows a careful balance of trade rules and corporate talks.

Stay tuned for more updates on trade, luxury items, and the links between politics and business.

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Skyrocketing Job Market Anxieties: New York Fed Survey Reveals Record Low Worker Confidence in Job-Moving Opportunities

Worker Confidence in Finding a New Job Hits Record Low, New York Fed Survey Shows

The New York Federal Reserve released the Survey of Consumer Expectations on Monday. The survey shows worker confidence is low. Here, workers believe they stand only a 44.9% probability to find a new job if they lose the one they have. This drop of 5.8 percentage points from July marks the survey’s lowest level. The survey has run since June 2013. ### Lowest Job-Finding Probability Since 2013

Workers once quit with high hopes during the "Great Resignation" in 2021-22. At that time, nearly 4.5 million quits occurred each month. In July 2025, only 3.2 million quits happened. The data, provided by the Bureau of Labor Statistics, shows a decline of more than 5% from the same period in 2024. ### Labor Market Dynamics and Slowed Mobility

Elizabeth Renter, a senior economist at NerdWallet, said,
"Consumers feel low about job-finding chances. It is hard to get work now. Employers hire little, and workers stay in their current jobs for security."

During the pandemic, many workers moved between jobs. Jobs were available at a rate of two openings per worker in some sectors. Now, the market slows down:

  • Hiring has dropped a lot.
  • More workers wait than there are job slots.
  • Employers check costs before adding new staff.

As a consequence, few workers leave on their own. The Fed survey finds:

  • The chance of leaving a job in the next year is near 18.9%.
  • Expectations that the unemployment rate climbs in 12 months are at 39.1%. This value is 1.7 percentage points higher than in July and above the 12-month average.

Recent Labor Market Weakness

The Bureau of Labor Statistics shared new numbers this week. In August, only 22,000 new jobs appeared. This total falls short of the expected 75,000. June’s job growth was revised to a loss of 13,000 jobs. This marks the first drop since December 2020. The official unemployment rate climbed to 4.3%, while a broader measure, which counts discouraged and underemployed workers, rose to 8.1%. These levels last appeared in October 2021. ### Market Expectations and Fed Policy Outlook

Many analysts and market watchers see signs of a soft labor market. Some predict the Federal Reserve might cut interest rates in the meeting on September 17. This change would be the first since December 2024. The move aims to spur economic activity and help the labor market.

With the labor market facing these issues, worker sentiment and confidence stay key for a clear view of the broader economic path.

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Europe at a Crossroads: Tackling Growing Economic Challenges and Striving for Competitiveness

Europe Faces Mounting Challenges Amid Struggles to Implement Solutions

By Sophie Kiderlin & Holly Ellyatt, CNBC
Published: September 8, 2025

Europe now deals with problems that grow over time. Political leaders note the issues, and business leaders see them pile up. They try to fix the issues, yet their work falls short. Experts at the Ambrosetti Forum spoke up. They gathered in one place, and each voice pointed to a fragile state. Old problems tie together with politics, the economy, and society.

Accumulating Challenges Threaten Europe’s Stability

Arancha González Laya, who once led Spanish foreign affairs and now guides Sciences Po University, compared Europe’s state to a build-up similar to bad cholesterol. Each small issue does not shock on its own. Still, when they join, they sweep in harm over Europe’s long life. "One day you will discover that you have a heart attack," she said.

Markus Kerber, a former German State Secretary and advisor, compared Europe to a rabbit caught in headlights. He said the continent sits still as the world changes fast around it. He pointed out that the old global order has fallen apart and left Europe with few signs of what to do next. He noted the rise of a group led by the United States, China, India, the European Union, and Russia. In this new mix, Europe does not hold the right tools to act quickly.

Economic Competitiveness: A Lingering Concern

One main worry is Europe’s work in the world economy. Analysts and leaders agree that the continent has lagged in the reforms needed to boost its world trade role, especially when compared with parts of the U.S. and Asia.

Reports from 2024 by former Italian Prime Ministers Mario Draghi and Enrico Letta list a set of issues that harm Europe’s money matters:

  • A heavy load of rules that stops new ideas
  • A divided single market that cuts work short
  • Energy prices that push up industrial costs
  • Slow growth and work that widen the gap with the U.S.

The Draghi report said, “Europe’s households have paid the price in foregone living standards.” Each family feels the drop, as real income per person in the U.S. has grown almost twice as much as in the EU since 2000. Data from the International Monetary Fund shows that the EU’s slice of global GDP (by buying power) fell from 27.5% in 1980 to just 14.1% in 2025. This drop shows how Europe has lost ground.

Efforts and Calls for Reform

Even as these issues grow, European leaders stick to plans for change. Valdis Dombrovskis, the EU Commissioner for Economy and Productivity, explained that projects like the “Competitiveness Compass” come from the work of Draghi and Letta. This plan targets tasks such as:

  • Narrowing the gap in new ideas
  • Using the EU single market to its full size
  • Cutting red tape and simplifying rules

“These aims are set on the EU agenda and are now at work,” Dombrovskis told CNBC.

Yet, many call for bolder moves. Carlos Cuerpo, Spain’s Minister of Economy, Trade and Business, stressed that delays in reforms must end. He urged a shift from waiting to doing, with clear steps based on the competitiveness plan from recent years. “Competitiveness is a medium-term task that must show up in day-to-day choices and quick actions,” Cuerpo said. “This is the hardest, yet most needed part of our work.”

Europe’s Path Forward

Experts and leaders at the Ambrosetti Forum agree: Europe sees its own troubles—from political strains to slow economic pace. Fixing these problems calls for fast and ongoing reform. A strong will on all sides and a clear view of a nimble, modern Europe are at the core of these plans.

As the world changes, how Europe adapts and competes will shape its role on the global stage.

For continuous updates on Europe’s economic and political developments, subscribe to CNBC Pro and join our Investing Club.

Related Topics:

  • Europe’s Economic Outlook
  • Global Political Order Shifts
  • EU Single Market Reform
  • International Trade Competitiveness

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August 2025 Jobs Report: A Stalling Labor Market Signals Economic Turbulence Ahead

August 2025 Jobs Report: Payroll Growth Slows Sharply, Indicating Hiring Weakness

Published September 5, 2025 – Updated Minutes Ago

The U.S. labor market shows slow growth. Payrolls grew by 22,000. This number falls far short of the 75,000 forecast by economists from Dow Jones. The slow gain points to fewer new hires. The economy and current monetary policy add to the worries.

Key Highlights from the Report

  • Payrolls rose by 22,000. In July, payrolls had risen by 79,000, and June ended with a net loss of 13,000 jobs.
  • The unemployment rate climbed to 4.3%, as more people joined the labor force.
  • Average hourly earnings increased 0.3% for August. The yearly growth in wages reached 3.7%, a bit less than the expected 3.8%.
  • Sector details:
    • Health care gained 31,000 jobs.
    • Social assistance added 16,000 jobs.
    • Wholesale trade and manufacturing each lost 12,000 jobs.
    • The federal government saw a drop of 15,000 jobs, which slowed overall progress.

Labor Market and Economic Context

The report shows that the job market is slowing down from earlier months. Daniel Zhao, chief economist at Glassdoor, says the market now lacks the speed seen before. He warns that the slow pace of hiring may make it hard to achieve a smooth economic slowdown.

The household survey shows:

  • An increase of 288,000 employed persons.
  • A rise of 148,000 unemployed persons.
  • The labor force grew by 436,000, which brings the participation rate to 62.3%.
  • When we include discouraged workers and those working only part-time by choice, the rate now is 8.1%. This is the highest level since October 2021. ### Market Reactions and Federal Reserve Outlook

The jobs numbers did not worry the market too much. At the opening bell, stocks moved up while Treasury yields fell. The CME Group’s FedWatch tool now shows that traders expect a quarter-point rate cut at the Federal Reserve meeting on September 17. There is also a small chance for a larger half-point cut.

Federal Reserve officials remain cautious. They note that while layoffs stay steady, hiring is falling. This slowdown adds pressure on the Fed to cut rates even as inflation worries persist because of ongoing tariff issues.

Recent Leadership Changes at the Bureau of Labor Statistics (BLS)

This is the first report since President Trump fired former BLS Commissioner Erika McEntarfer. Her removal came after the July report showed weak job creation and big downward revisions. Trump nominated economist E.J. Antoni to lead the agency, while William Wiatrowski serves as acting commissioner for now.

Looking Ahead: Benchmark Revisions and Economic Outlook

The BLS will release its annual benchmark revisions later today. These revisions may change past numbers to give a clearer view of recent trends. Some experts, including National Economic Council Director Kevin Hassett, expect the August payroll figure to rise after revision. In past years, early August estimates have often come in too high.

Olu Sonola at Fitch Ratings noted that four months of job losses in manufacturing stand out. Tariff issues seem to keep hiring low in many areas.

Summary

The August 2025 report shows a clear slow down in hiring. Job gains fall short of forecasts, and unemployment rises. Health care shows gains while manufacturing shows losses. The signs point to a slower job pace. Many expect that the Fed will cut rates to help keep the economy growing.

For continuing coverage and updates on economic indicators, Federal Reserve decisions, and market impacts, stay tuned to CNBC.

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Trump & Japan Seal Trade Agreement: 15% Tariffs and $550 Billion Investment Unveiled

U.S. and Japan Finalize Trade Deal Featuring 15% Tariffs on Japanese Imports

September 4, 2025 — The United States and Japan have reached an agreement that starts a new economic era. U.S. President Donald Trump signed the order on Thursday to enforce the deal. The plan sets a clear 15% tax on nearly all products from Japan, including cars.

Key Elements of the Trade Deal

The deal came in July after long talks. Hard work on details fixed small issues. The plan has several parts:

  • Tokyo’s Commitment to Invest: Japan will send $550 billion to projects picked by the U.S. government. This promise shows a deeper side of shared investment.
  • Agricultural Purchases: Japan will buy more U.S. crops such as corn, soybeans, and rice. The plan pushes a 75% rise in rice imports. Japan also will take on $8 billion worth of other U.S. crop items.
  • Commercial Aircraft and Defense Equipment: Japan will take U.S. commercial planes. The order for 100 Boeing jets gives a boost to the air trade.
  • Market Access Improvements: The new deal clears new ways in fields like manufacturing, plane-building, farming, and cars. This change should open more paths for U.S. companies.
  • Sector-Specific Tariffs: Besides the main 15% tax, Japan will pay extra on cars, car parts, aerospace goods, common drugs, and natural resources.

The order makes sure no extra taxes fall on Japanese products beyond the agreed sums. Tax relief for cars starts seven days after the order. These taxes apply to products that entered the U.S. from August 7, 2025. ### Economic Implications and Industry Impact

This tax rule is part of President Trump’s wider global campaign on tariffs. It has upset supply lines, especially in Japan’s key car sector.

  • Toyota’s Warning: Toyota says it will lose nearly $10 billion. The extra cost cuts its profit forecast by 16%.
  • U.S. Automotive Rivals: Ford and General Motors expect losses too. Ford faces a $3 billion loss while General Motors may lose up to $5 billion.

Political Ramifications in Japan

The deal comes as Japan faces more political strain. Prime Minister Shigeru Ishiba feels pressure after the July vote by his party. The Liberal Democratic Party lost ground because of:

• Limited plans to control rising prices
• Remains of past political faults
• Low interest among young voters

Some insiders want a change of leader. Analysts at Eurasia Group see a 60% chance that Ishiba will lose the vote on Monday. The vote may force him to step down because of growing party dissent.

Next Steps and Diplomatic Engagements

Japan’s top trade envoy, Ryosei Akazawa, recently went to Washington. He carried an invite from Prime Minister Ishiba for President Trump to visit Japan. This move shows that talks will keep going, even with a tough deal in place.

This trade deal marks a big shift in U.S.-Japan economic ties. It mixes a set tax with moves on investment and market change. As the plan takes effect, its effects will shape trade and politics in both lands.

For more news on this story and other market updates, stay tuned.

Reported by Anniek Bao, CNBC

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August Job Growth Plummets: U.S. Adds Just 54,000 Jobs Amid Labor Market Concerns

U.S. Labor Market Growth Slows in August as Only 54,000 Jobs Are Added, ADP Says

The U.S. private sector grew much slower in August. The report from payroll processor ADP shows the economy added only 54,000 jobs. This is well below what many economists had forecast. It also shows more worry about the job market in the coming months.

Key Report Points:

  • Private payrolls grew by 54,000 jobs in August. Economists had expected 75,000 jobs, as seen in a survey by Dow Jones.
  • The growth in August is much lower than July’s revised increase of 106,000.
  • Job gains varied. Some fields lost jobs while others added a few.

Breaking Down the Sectors

Some fields showed clear weakness:

  • Trade, Transportation, and Utilities lost 17,000 jobs.
  • Education and Health Services dropped by 12,000 jobs.
  • In contrast, Leisure and Hospitality added 50,000 jobs. This suggests that roles with direct customer contact still have high demand.

Wage Trends Stay Stable

Even with slow hiring, wages did not change much:

  • Workers who kept their jobs earned about 4.4% more over the year.
  • Workers who changed jobs earned about 7.1% more during the same period.

What May Cause the Slowdown

ADP’s chief economist, Nela Richardson, said, "The year started with strong job growth, but that strength is now shaken by doubt." Many point to high consumer worries, ongoing worker shortages, and issues brought by new tech as reasons for the slow pace.

More Concerns About the Labor Market

The ADP report adds to the growing list of signs that the job market is facing trouble:

  • Initial jobless claims climbed to 237,000. This is 8,000 more than before and higher than predictions.
  • The government’s Job Openings and Labor Turnover Survey (JOLTS) showed some of the lowest job openings since 2020 as of July.

These facts hint that employers are more careful with hiring when the future is uncertain.

Market and Federal Reserve Views

The weak job numbers have affected financial markets. Traders now expect the Federal Reserve to cut interest rates in its September meeting. The CME’s FedWatch tool now shows a 97.4% chance of a rate cut, up from 96.6% the day before.

Looking Ahead: The September Jobs Report

Attention now shifts to the official U.S. government report coming Friday morning. Economists predict that around 75,000 non-farm payroll jobs will be added in August. This number matches the revised job gain in July. The unemployment rate might also rise a bit to 4.3%, up from 4.2% in July.

These numbers will play a key role in how people view future economic growth and in the decisions on monetary policy.

The slow job growth in the labor market highlights the many challenges in the U.S. economy. Some fields show strength, while others seem to weaken. This mixed picture comes at a time when the country faces changes brought about by new technology and ongoing concerns about the economy.

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Job Openings Plummet to Pandemic-Low Levels, Signaling Labor Market Weakness

Job Opening Data Dips to Pandemic-Era Lows, Signaling Cooling Labor Market

September 3, 2025 — U.S. job openings fall to low levels. Recent data shows a drop seen only since COVID began. This change points to a labor market that now slows down.

The Bureau of Labor Statistics released the latest Job Openings and Labor Turnover report. The report shows job listings near 7.18 million for July. This is only the second time since 2020 that openings fall under 7.2 million. The similar drop last occurred in September 2024 when numbers sat just above 7.1 million.

Key Highlights:

  • July job openings: 7.18 million
  • Economists’ expectation: about 7.4 million (from a Dow Jones poll)
  • Lowest reading: since September 2024
  • Comparison: levels seen in the early pandemic days

This drop did not meet economists’ predictions. The report shows hints that hiring may slow after many months of signs that job offers were dying down.

Heather Long, Chief Economist at Navy Federal Credit Union, noted, "This marks a turning point in the labor market. It is a crack in the system." She added, "The data proves that the job market is frozen and it is hard for anyone to find work right now."

What This Means for the Economy

Fewer job listings can signal that employers act with more care in uncertain times. Fewer openings may slow wage rise and job gains. A slowing labor market could also affect how much consumers spend, a key part of economic growth.

Investors and policymakers will study the next reports to gain a clearer view. Key upcoming data include:

  • Weekly jobless claims report (due Thursday): It gives a near-term look at layoffs and unemployment.
  • Monthly jobs report (due Friday morning): It shows a full picture of employment, job loss, and wage shifts across the nation.

Ongoing Labor Market Watch

The labor market has stayed in focus since the pandemic. COVID first shook jobs in many ways. Now, the drop in job openings hints that the market may grow more slowly or start to settle. As new numbers come in, experts will watch these trends to adjust their plans on hiring, investing, and economic policy.

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Euro Zone Inflation Surges to 2.1% in August 2025: What It Means for the Economy and ECB Policy

Euro Zone Inflation Rises Slightly Above Expectation to 2.1% in August 2025

Eurostat shared flash data on September 2, 2025. The euro zone saw inflation jump to 2.1% in August. This move beat the 2.0% estimate from a Reuters poll. Economists had kept the rate steady from July.

Key Inflation Figures and Market Response

  • The headline inflation rate is 2.1%, a bit above the ECB’s target of 2%.
  • Core inflation stays at 2.3%. It leaves out fast-changing prices like those for food, energy, alcohol, and tobacco.
  • The services inflation rate drops a little to 3.1% from 3.2% the month before.

Shoppers face higher prices at supermarkets across the euro zone. Markets react; the euro slips 0.6% against the U.S. dollar near $1.1640, and the pan-European Stoxx 600 index drops 0.7% on Tuesday morning.

European Central Bank’s Interest Rate Outlook

In July, the ECB kept its key rate at 2%. Many now expect the bank to keep rates at the same level in September. Andrew Kenningham, Chief Europe Economist at Capital Economics, notes that the small rise in headline inflation will not shift the ECB’s plans soon.

“Most important for the ECB is that the services inflation fell from 3.2% in July to 3.1% in August. This is the lowest since March 2022 and shows that local price pressure is easing,” Kenningham said.

He adds that the bank will hold rates for a few more months while it reviews economic signs.

Economic Growth and Trade Developments

Eurostat reported modest growth of 0.1% in the second quarter compared to the previous quarter. This slow but steady growth, mixed with fewer trade worries after the July EU-U.S. trade deal, sets a careful stage for the region’s economy.

The new deal cleared many tariff issues. Some worry that a steady 15% duty on certain EU exports to the U.S. could still slow activity.

Expert Perspectives on Inflation and Monetary Policy

Irene Lauro, a euro zone economist at Schroders, sees a steady path ahead:

“With trade worries easing, the euro zone recovery may gain strength. Firms begin to borrow and invest more. The ECB will likely hold rates steady in September. The steady core inflation shows that a change in policy is not on the horizon. The bank will watch growth before making any move.”

What Lies Ahead?

Data and expert words make it likely that the ECB will keep rates unchanged at its next meeting. The small rise in headline inflation, paired with softer services inflation, suggests that price pressures in the euro zone may start to settle.

Investors and policymakers watch closely. They see that future economic growth, job numbers, and trade matter for both inflation and the bank’s policy in coming months.

Stay updated on economic developments and market movements with CNBC’s live coverage and detailed analysis.

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The Strategic Restraint: Why Trump Hesitates to Enforce Sanctions on Russia Amid Ongoing Conflict

Why Does Trump Hold Back on Punishing Russia and Putin?

September 1, 2025 – CNBC Report by Holly Ellyatt

U.S. President Donald Trump has warned he will add more sanctions on Russia and its leader, Vladimir Putin, if Moscow does not start peace talks or call for a ceasefire in Ukraine. Though Russian forces move more and Moscow shows no sign of talks, Trump sits back from new harsh actions.

A Strategic Pause in Sanctions

Experts note that this pause is part of a deep plan. Chris Weafer, head of Macro-Advisory in Moscow, says Russia’s money is already squeezed by limits on its oil trade. More sanctions might push Russia’s budget beyond its limit, but these tough moves have not come yet.

Reasons Behind Trump’s Reluctance

Two main points shape Trump’s slow move:

  • Aiming to Mediate Peace: Trump shows a clear wish to be the one who brings the sides together. With the Nobel Peace Prize soon in early October, many think the president plans to win praise for solving the conflict by talks instead of force.

  • Worry Over Russia and China Growing Close: Some in the U.S. fear that if Russia is cut off by the West, it may turn closer to China. A bond between Russia and China could give Beijing better access to Russian energy, materials, military tools, and key territories in the Arctic. This closeness might bar the U.S. from important areas and boost China’s rank in the world.

Chris Weafer said, “Official voices in Washington do not want Russia to end up under China’s wing; they work to keep Russia active with the West.” This care shapes when and how harsh the sanctions will be.

Reaction from Ukraine and the West

Ukraine shows anger at what many see as missed limits and broken promises from Washington. Trump set a line with a ceasefire date on August 8, but the fighting did not stop. John Herbst, who once led U.S. ties with Ukraine and now heads the Atlantic Council’s Eurasia Center, said Trump’s delay has left Kyiv and European friends "gritting their teeth," waiting for the White House to see that Russia acts to avoid real impact.

The New Geopolitical Scene: China-Russia-India Relations

At the Shanghai Cooperation Organization summit on September 1, 2025, major eastern powers met. Leaders including Putin and Indian Prime Minister Narendra Modi joined with 20 other state heads.

Chinese President Xi Jinping called for an end to a "Cold War mindset" and asked for more help among states. At the summit, Putin spoke of a chance to form a new political and social order away from a usual Euro-Atlantic group. He felt that recent meetings with Trump and current talks may help bring peace to Ukraine.

Outlook

Sanctions remain a key tool in U.S. efforts to press Russia. Yet, the U.S. now faces a hard mix of pushing Moscow and stopping a deep Russia-China tie. The White House has not yet explained its next moves, leaving friends in Ukraine and around the world to wait.

For more on this developing story and other global news, subscribe to CNBC PRO and stay informed.

Key Takeaways:

  • Trump holds back new sanctions to play a role as a mediator and to discourage a closer Russia-China bond.
  • New limits might force Russia’s economy into more trouble but could also speed up its move toward China.
  • Ukraine and its European friends are upset with what they see as slow or missing action.
  • The SCO summit shows that power in Eurasia is shifting.
  • The U.S. faces a hard task in balancing pressure on Moscow with wider global ties.

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