US economic activity increased slightly in recent weeks, but the outlook was neutral to slightly pessimistic, the Federal Reserve said on Wednesday, as businesses reported the Trump administration's higher tariffs were putting upward pressure on prices.

President Donald Trump said on Wednesday the US will probably "live by the letter" on tariffs with Japan and may have another trade deal coming up with India, following his announcement of an accord with Indonesia on Tuesday.

Volvo Cars said it has scaled back its US model lineup this year, among the first examples of a major automaker halting US shipments as President Donald Trump's tariffs make it harder to sell a broad range of vehicles profitably.

President Donald Trump said he would send letters to more than 150 countries notifying them their tariff rates could be 10% or 15% as he forges ahead with his trade agenda.

Asean-5 gross domestic product (GDP) growth is projected to fall to just 3% in 2025 and as low as 1.5% in 2026 if knock-on effects from the US tariffs continue, said Bloomberg Southeast Asia economist Dr Tamara Mast Henderson.

Japan’s exports fell for a second month as US President Donald Trump’s tariff campaign continued to weigh on trade, further raising the risk of a technical recession for the nation’s sputtering economy.