KUWAIT CITY, July 23: A number of oil and economic experts shed light on whether or not the tariffs that America imposed on the European Union and many other countries around the world affect oil prices; as well as the repercussions for the Kuwaiti economy and other countries in the region that rely primarily on oil as a primary source of income, and the action that the Kuwaiti government must take to avoid the repercussions of any looming global economic crisis.

The experts stressed the need for the Kuwaiti government to fully prepare for dealing with the repercussions of the increased US tariffs on most countries. They also emphasized the importance of reducing reliance on imported goods by expanding industry, agriculture and all other sectors related to economic growth.

Oil expert Kamel Al-Harami asserted that the Trump-like increase in US tariffs on imports from European Union countries and many other countries will impact global inflation, resulting in higher commodity prices. “This could continue for at least two years until the world adjusts to these conditions. Higher prices will lead to a decline in purchasing power in European Union countries and those affected by the tariff increase, with the expected result being a drop in the price of a barrel of oil — ranging from $65 to $70,” he explained.

He said Kuwait should use the proceeds from the sale of its stake in two companies to cover the budget deficit, while investing these funds in investment projects with good financial returns for the State budget. At the same time, he warned against becoming accustomed to borrowing. Economic expert Ahmed Al-Sadhan believes that the United States’ imposition of tariffs on the European Union will inevitably lead to a decline in trade between the two sides, which will in turn lead to global economic instability.

“One of the negative repercussions of this move is the global commodity price hike, which negatively affects the economies of importing countries, including Kuwait and other Gulf states; particularly through increased import costs and a decline in global demand for oil. If the global economy slows down due to these tariffs, oil prices will decline because of low global demand,” he explained. He suggested that in order to avoid these economic crises in light of the escalating economic conflict among the United States, the European Union and other countries, Kuwait must diversify its imports, support local industry, expand its trade partnerships, and stop total dependence on oil in the long term. Dr. Manal Al-Kandari said that Trump’s announcement of a new 30 percent tariff on European Union countries has intertwined global and regional economic dimensions.

“This could lead to a decline in European exports to the US, which will result in higher prices of European products in the US market, and a decline in demand for such products. She pointed out that this will cause enormous economic damage to European companies, especially the export-dependent industries like automobiles, aircraft, electronics and technology industries, ultimately leading to an economic recession in the European Union countries. She explained that the repercussions of this recession will spill over to global markets, including Kuwait, other Gulf states and Arab countries; considering this potential recession could reduce the European Union countries’ consumption of oil, gas and all petroleum derivatives they import from Kuwait and other Gulf states. “This is especially true given that trade between Kuwait and the European Union is steadily increasing. The trade between Kuwait and the rest of Europe is significant, as international data issued by the European Statistical Office (Eurostat) showed that Kuwaiti exports to the European Union some years ago amounted to 3.5 billion euros ($3.6 billion), compared to imports of 5.5 billion euros ($5.8 billion). Therefore, a European economic recession will affect the Gulf and Kuwaiti economies,” she added

By Najeh Bilal
Al-Seyassah/Arab Times Staff

OpenAI’s Sam Altman sounds alarm on AI voice fraud at Fed conference.

WASHINGTON, July 23, (AP): OpenAI CEO Sam Altman warned the financial industry of a “significant impending fraud crisis” because of the ability of artificial intelligence tools to impersonate a person’s voice to bypass security checks and move money.

Altman spoke at a Federal Reserve conference Tuesday in Washington.

“A thing that terrifies me is apparently there are still some financial institutions that will accept the voiceprint as authentication,” Altman said. “That is a crazy thing to still be doing. AI has fully defeated that.”

Voiceprinting as an identification for wealthy bank clients grew popular more than a decade ago, with customers typically asked to utter a challenge phrase into the phone to access their accounts.

But now AI voice clones, and eventually video clones, can impersonate people in a way that Altman said is increasingly “indistinguishable from reality” and will require new methods for verification.

“That might be something we can think about partnering on,” said Fed Vice Chair for Supervision Michelle Bowman, the central bank’s top financial regulator, who was hosting the discussion with Altman.

US President Donald Trump meets with Philippine President Ferdinand Marcos Jr, in the Oval Office of the White House, Tuesday on July 22 in Washington. (AP)

WASHINGTON, July 23, (AP): US President Donald Trump said he has reached a trade agreement with Philippine leader Ferdinand Marcos Jr, following a meeting Tuesday at the White House, that will see the US slightly drop its tariff rate for the Philippines without paying import taxes for what it sells there.

Trump revealed the broad terms of the agreement on his social media network and said the US and the Philippines would work together militarily. The announcement of a loose framework of a deal comes as the two countries are seeking closer security and economic ties in the face of shifting geopolitics in the Indo-Pacific region.

Marcos’ government indicated ahead of the meeting that he was prepared to offer zero tariffs on some US goods to strike a deal with Trump. The Philippine Embassy did not immediately respond to a message seeking comment. Marcos’ three-day visit to Washington shows the importance of the alliance between the treaty partners as China is increasingly assertive in the South China Sea, where Manila and Beijing have clashed over the hotly contested Scarborough Shoal.

Trump said on Truth Social that the US would impose a 19% tariff rate on the Philippines, down from a 20% tariff he threatened starting Aug. 1. In return, he said, the Philippines would have an open market and the US would not pay tariffs. Marcos described the lower 19% tariff rate to reporters in Washington as a “significant achievement” in real terms. He said his country was considering options such as having an open market without tariffs for US automobiles, but emphasized details were still left to be worked out. When asked whether the Philippines got the shorter end of the stick, Marcos said, “that’s how negotiations go.”

Without further details on the agreement, it’s unclear how it will impact their countries’ economies. Trump wrote that Marcos’ visit was “beautiful,” and it was a “Great Honor” to host such a “very good, and tough, negotiator.” Appearing before reporters in the Oval Office ahead of their private meeting, Marcos spoke warmly of the ties between the two nations.