Trade tensions between the United States and China have intensified as Beijing announced a fresh round of sanctions targeting multiple U.S.-linked entities while tightening export controls on its globally dominant drone industry.

The new measures could affect international buyers and disrupt global supply chains for commercial and industrial drones used in logistics, agriculture, surveillance, and defense. Analysts say the tighter export controls may impact pricing, availability, and innovation across global markets.

Meanwhile, Chinese consumers have reacted strongly to recent U.S. actions against certain Chinese food brands, highlighting how geopolitical disputes are increasingly influencing consumer behavior and business decisions.

China Hits U.S. With Fresh Sanctions, Tightens Drone Export Controls Amid Trade Tensions

President Donald Trump's economic strategy is facing fresh scrutiny as his administration continues using tariffs and sanctions to pressure trading partners and geopolitical rivals.

New tariffs of up to 12.5% on imports from 60 countries are now facing legal challenges, with multiple US states arguing that the administration exceeded its authority. Economists also suggest that American businesses and consumers—not foreign exporters—are paying much of the cost through higher prices.

At the same time, US sanctions on Russia have pushed Moscow to expand alternative payment systems, shadow shipping networks, and trade partnerships with countries such as China and India.

Trump's Tariffs & Sanctions Under Fire | Are US Economic Pressure Tactics Failing?

The United States has imposed a new 10% tariff on imports from India under Section 301 of the Trade Act of 1974, citing concerns over the enforcement of laws against goods produced using forced labor. The tariff is part of a broader trade action targeting multiple economies. While India was initially expected to face a 12.5% tariff, the rate was reduced after New Delhi amended its foreign trade policy to prohibit imports made using forced labor. The US Department of Labor highlighted concerns across several Indian sectors, including textiles, garments, tea, shrimp processing, leather goods, carpets, fireworks, rice mills, and stone quarries. Industry experts warn that the permanent nature of the Section 301 tariffs could affect Indian exports, investments, and ongoing India-US trade negotiations.

US Imposes 10% Tariff on India | Trump Targets Forced Labor, Trade Talks Face New Challenge

Spanish Prime Minister Pedro Sánchez arrived in Beijing on Saturday for a three-day visit aimed at extracting greater technological benefits from Chinese investment in Spain, with the two countries set to sign a landmark investment deal during the trip.

Spanish PM Pedro Sanchez Marks His Fourth State Visit To China Amid Trade Tensions

Tesla (TSLA.O), opens new tab CEO Elon Musk arrived in Beijing on Sunday on an unannounced visit, where he was expected to discuss the rollout of Full Self-Driving (FSD) software and permission to transfer data overseas, according to a person with knowledge of the matter.

Elon Musk visits China amid trade tensions: Tesla seeks self-driving technology rollout

US Secretary of State Mike Pompeo will seek to further strengthen strategic ties with India during a visit next week despite increasing frictions over trade, data flows and arms from Russia, officials said.

Pompeo arrives in New Delhi on Tuesday for talks that are aimed at laying the ground for a meeting between US President Donald Trump and Indian Prime Minister Narendra Modi later in the week at a G20 meeting in Japan.

India is embroiled in disputes with the United States over tariffs, Indian price caps on imported medical devices, most from the United States, and Indian rules on e-commerce that impose conditions on the operations of major US companies such as Amazon and Walmart.

Another issue that has alarmed India is the possibility of US restrictions on work visas for Indian professionals in retaliation for India's insistence on local data storage by big foreign firms, even though the State Department said on Thursday it had no such plan.

"US-India trade ties, at least between our capitals, are certainly worsening. We both have leaders who look at trade as a zero-sum game," said Richard Rossow, a US-India expert at Washington's the Center for Strategic and International Studies.

The Indian government led by Modi, who was re-elected last month with a big majority, says it has been trying to negotiate solutions to the disputes with the United States but that, as a developing country, it has to protect the interests of its people.

Trump has repeatedly criticised India for its high tariffs and last month raised the stakes with the withdrawal of a decades-old trade privilege.

Indian and US officials said trade would be addressed during Pompeo's visit but emphasised the broader political and security relationship.

"There will be certain issues between us that will be on the table at all points of time," an Indian government official said. "But it should not detract from the overall direction of the relationship, which is positive."

Arms sales&nbsp;

Both countries are wary of the growing might of China.

US officials said Pompeo will seek to advance the US&nbsp;strategic partnership with India.

"India is a crucial partner in the Trump administration’s vision for a free and open Indo-Pacific region; It shares our concerns about challenges to our shared interests in the region," a senior official of the US State Department told reporters on Friday.

The official said Pompeo would "talk specifically ... about expanding security, energy and space cooperation," and noted that the two countries were gearing up for their first-ever tri-service military exercises in the Bay of Bengal later this year.

At the same time, the US side was hoping the visit would provide a "kick-start" to move quickly to resolve longstanding irritants over trade and market access for US firms.

"A serious process, a credible process and a candid process is going to be critical," the official said. "We need to get a conversation started quickly."

India and the United States eyed each other warily over decades of Cold War suspicion, when India was closer to the then Soviet Union.

But the United States has become one of India's top arms suppliers over the past decade, selling more than $15 billion of weapons such as transport planes, long-range submarine hunters and helicopter gunships.

US firms Lockheed Martin and Boeing are in the race for a contract to build 110 fighter planes in a deal estimated at $20 billion.

In 2016, the United States declared India a major defence partner, opening the way for sales of high-tech military equipment seen as part of a U.S. aim to build up the country as a counterweight to China in the region.

But here too, new strains have emerged over an Indian plan to buy S-400 surface-to-air missile systems from Russia, which can trigger US sanctions under the Countering American Adversaries Through Sanctions Act (CAATSA), prohibiting any engagement with Russia's defence sector.

India, which signed the deal with Russia last year, has been hoping for a waiver, but that has not been forthcoming.

US&nbsp;principal deputy assistant secretary for South and Central Asia, Alice Wells, told Congress this month Washington had "serious concerns" about the possible Indian purchase and there was no available CAATSA waiver when it came to the S-400.

"We are continuing our conversations about how the U.S. or other defence providers could assist India," she added.

US Secretary of State Mike Pompeo will seek to further strengthen strategic ties with India during a visit next week despite increasing frictions over trade, data flows and arms from Russia, officials said.

US Secretary of State Mike Pompeo will seek to further strengthen strategic ties with India during a visit next week despite increasing frictions over trade, data flows and arms from Russia, officials said. Pompeo arrives in New Delhi on Tuesday for talks that are aimed at laying the ground for a meeting between US President Donald Trump and Indian Prime Minister Narendra Modi later in the week at a G20 meeting in Japan. India is embroiled in disputes with the United States over tariffs, Indian price caps on imported medical devices, most from the United States, and Indian rules on e-commerce that impose conditions on the operations of major US companies such as Amazon and Walmart. Another issue that has alarmed India is the possibility of US restrictions on work visas for Indian professionals in retaliation for India's insistence on local data storage by big foreign firms, even though the State Department said on Thursday it had no such plan. "US-India trade ties, at least between our capitals, are certainly worsening. We both have leaders who look at trade as a zero-sum game," said Richard Rossow, a US-India expert at Washington's the Center for Strategic and International Studies. The Indian government led by Modi, who was re-elected last month with a big majority, says it has been trying to negotiate solutions to the disputes with the United States but that, as a developing country, it has to protect the interests of its people. Trump has repeatedly criticised India for its high tariffs and last month raised the stakes with the withdrawal of a decades-old trade privilege. Indian and US officials said trade would be addressed during Pompeo's visit but emphasised the broader political and security relationship. "There will be certain issues between us that will be on the table at all points of time," an Indian government official said. "But it should not detract from the overall direction of the relationship, which is positive." Arms sales Both countries are wary of the growing might of China. US officials said Pompeo will seek to advance the US strategic partnership with India. "India is a crucial partner in the Trump administration’s vision for a free and open Indo-Pacific region; It shares our concerns about challenges to our shared interests in the region," a senior official of the US State Department told reporters on Friday. The official said Pompeo would "talk specifically ... about expanding security, energy and space cooperation," and noted that the two countries were gearing up for their first-ever tri-service military exercises in the Bay of Bengal later this year. At the same time, the US side was hoping the visit would provide a "kick-start" to move quickly to resolve longstanding irritants over trade and market access for US firms. "A serious process, a credible process and a candid process is going to be critical," the official said. "We need to get a conversation started quickly." India and the United States eyed each other warily over decades of Cold War suspicion, when India was closer to the then Soviet Union. But the United States has become one of India's top arms suppliers over the past decade, selling more than $15 billion of weapons such as transport planes, long-range submarine hunters and helicopter gunships. US firms Lockheed Martin and Boeing are in the race for a contract to build 110 fighter planes in a deal estimated at $20 billion. In 2016, the United States declared India a major defence partner, opening the way for sales of high-tech military equipment seen as part of a U.S. aim to build up the country as a counterweight to China in the region. But here too, new strains have emerged over an Indian plan to buy S-400 surface-to-air missile systems from Russia, which can trigger US sanctions under the Countering American Adversaries Through Sanctions Act (CAATSA), prohibiting any engagement with Russia's defence sector. India, which signed the deal with Russia last year, has been hoping for a waiver, but that has not been forthcoming. US principal deputy assistant secretary for South and Central Asia, Alice Wells, told Congress this month Washington had "serious concerns" about the possible Indian purchase and there was no available CAATSA waiver when it came to the S-400. "We are continuing our conversations about how the U.S. or other defence providers could assist India," she added.

Pompeo to seek stronger strategic ties with India despite trade tensions

Asian markets rose Wednesday, tracking rallies on <a href="https://www.wionews.com/business-economy/wall-street-shudders-as-us-china-trade-war-intensifies-218493">Wall Street</a> after the US Federal Reserve chief indicated greater openness to lowering interest rates and acknowledged the impact of trade tensions on growth.

Speaking in Chicago on Tuesday, Fed Chair Jerome Powell admitted that ongoing trade conflicts had dimmed the growth outlook, remarks widely seen as opening the door to a potential interest rate cut.

"We are closely monitoring the implications of these developments for the US economic outlook and, as always, we will act as appropriate to sustain the expansion," Powell said.

The comments signal a shift in the policy of the Fed, which has kept interest rates unchanged in 2019 after a series of hikes in 2018 and previous years.&nbsp;

"Powell changed the Fed messaging just enough to avoid signalling a shift from patient to panicked. it was music to US investors' ears who have been starved of positive news of late", said Stephen Innes, Managing Partner at SPI Asset Management.

The Dow closed with gains of 2.1 per cent. 
In Asia, Tokyo jumped 1.9 per cent, while Hong Kong was up 0.8 per cent. Shanghai and Seoul edged up 0.3 per cent and Singapore climbed 0.6 per cent.

Sydney also rose 0.6 per cent even as government statistics showed near-zero growth the previous quarter, underscoring fears for the economy.&nbsp;

The Australian economy has avoided recession for almost 28 years, but a housing slump, rising unemployment and below-target inflation prompted the central bank on Tuesday to cut its key interest rate to a historic low of 1.25 per cent.

&nbsp;Economy at crossroads 
The buying was also supported by more favourable news on the trade front, with Beijing backing negotiations to resolve its spat with Washington and congressional Republicans opposing President Donald Trump's tariff threats against Mexico.

Worries over the US-China trade war "have eased following reports that China's commerce ministry said the trade friction should be resolved through dialogue", Okasan Online Securities' chief strategist Yoshihiro Ito said in a commentary. &nbsp; 
But a new World Bank report showing reduced global growth forecasts for the year suggested that investors could expect the trade headwinds to continue for some time yet.

The world economy is now expected to expand by 2.6 per cent this year, three-tenths of a percentage point lower than the January forecast, and well below the three per cent growth seen in 2018, according to the Global Economic Prospects report.

"The bottom line is that the global economy is coming to a crossroads," World Bank economist Ayhan Kose, who oversaw the report, told AFP.

"We need to find ways to stabilise growth and I think further escalation of these trade tensions is now the number one risk that could actually weigh on the outlook," he told AFP.

The US-China trade spat has seen the top two superpowers deploy tit-for-tat tariffs on trade worth hundreds of billions of dollars, with no date set for stalled talks to resume.

But there are hopes that Trump and Chinese President Xi Jinping will meet at the G20 summit in Japan this month to jump-start negotiations. 
&nbsp;Key figures around 0240 GMT - 
Tokyo - Nikkei 225: UP 1.9 percent at 20,800.64 (break)

Hong Kong - Hang Seng: UP 0.8 percent at 26,978.31

Shanghai - Composite: UP 0.3 percent at 2,870.61

Pound/dollar: UP at $1.2707 from $1.2699 at 2100 GMT Tuesday&nbsp;

Euro/pound: UP at 88.63 pence from 88.61 pence&nbsp;

Euro/dollar: UP at $1.1263 from $1.1254

Dollar/yen: DOWN at 108.05 yen from 108.14 yen&nbsp;

Oil - Brent Crude: DOWN 24 cents at $61.73 per barrel

Oil - West Texas Intermediate: DOWN 29 cents at $53.19 per barrel

New York - Dow: UP 2.1 percent at 25,332.18 (close)

London - FTSE 100: UP 0.4 percent at 7,214.29 (close)

Asian markets rose Wednesday, tracking rallies on Wall Street after the US Federal Reserve chief indicated greater openness to lowering interest rates and acknowledged the impact of trade tensions on growth.

Asian markets rose Wednesday, tracking rallies on Wall Street after the US Federal Reserve chief indicated greater openness to lowering interest rates and acknowledged the impact of trade tensions on growth. Speaking in Chicago on Tuesday, Fed Chair Jerome Powell admitted that ongoing trade conflicts had dimmed the growth outlook, remarks widely seen as opening the door to a potential interest rate cut. "We are closely monitoring the implications of these developments for the US economic outlook and, as always, we will act as appropriate to sustain the expansion," Powell said. The comments signal a shift in the policy of the Fed, which has kept interest rates unchanged in 2019 after a series of hikes in 2018 and previous years. "Powell changed the Fed messaging just enough to avoid signalling a shift from patient to panicked. it was music to US investors' ears who have been starved of positive news of late", said Stephen Innes, Managing Partner at SPI Asset Management. The Dow closed with gains of 2.1 per cent. In Asia, Tokyo jumped 1.9 per cent, while Hong Kong was up 0.8 per cent. Shanghai and Seoul edged up 0.3 per cent and Singapore climbed 0.6 per cent. Sydney also rose 0.6 per cent even as government statistics showed near-zero growth the previous quarter, underscoring fears for the economy. The Australian economy has avoided recession for almost 28 years, but a housing slump, rising unemployment and below-target inflation prompted the central bank on Tuesday to cut its key interest rate to a historic low of 1.25 per cent. Economy at crossroads The buying was also supported by more favourable news on the trade front, with Beijing backing negotiations to resolve its spat with Washington and congressional Republicans opposing President Donald Trump's tariff threats against Mexico. Worries over the US-China trade war "have eased following reports that China's commerce ministry said the trade friction should be resolved through dialogue", Okasan Online Securities' chief strategist Yoshihiro Ito said in a commentary. But a new World Bank report showing reduced global growth forecasts for the year suggested that investors could expect the trade headwinds to continue for some time yet. The world economy is now expected to expand by 2.6 per cent this year, three-tenths of a percentage point lower than the January forecast, and well below the three per cent growth seen in 2018, according to the Global Economic Prospects report. "The bottom line is that the global economy is coming to a crossroads," World Bank economist Ayhan Kose, who oversaw the report, told AFP. "We need to find ways to stabilise growth and I think further escalation of these trade tensions is now the number one risk that could actually weigh on the outlook," he told AFP. The US-China trade spat has seen the top two superpowers deploy tit-for-tat tariffs on trade worth hundreds of billions of dollars, with no date set for stalled talks to resume. But there are hopes that Trump and Chinese President Xi Jinping will meet at the G20 summit in Japan this month to jump-start negotiations. Key figures around 0240 GMT - Tokyo - Nikkei 225: UP 1.9 percent at 20,800.64 (break) Hong Kong - Hang Seng: UP 0.8 percent at 26,978.31 Shanghai - Composite: UP 0.3 percent at 2,870.61 Pound/dollar: UP at $1.2707 from $1.2699 at 2100 GMT Tuesday Euro/pound: UP at 88.63 pence from 88.61 pence Euro/dollar: UP at $1.1263 from $1.1254 Dollar/yen: DOWN at 108.05 yen from 108.14 yen Oil - Brent Crude: DOWN 24 cents at $61.73 per barrel Oil - West Texas Intermediate: DOWN 29 cents at $53.19 per barrel New York - Dow: UP 2.1 percent at 25,332.18 (close) London - FTSE 100: UP 0.4 percent at 7,214.29 (close)

Asia markets climb as Fed signals possible rate cut

The US military said one of its warships sailed near the disputed Scarborough Shoal claimed by China in the South China Sea on Sunday, a move likely to anger Beijing at a <a href="https://www.wionews.com/world/dont-go-too-far-in-damaging-moves-china-tells-us-219797">time of tense ties between the world's two biggest economies</a>.

The busy waterway is one of a growing number of flashpoints in the US-China relationship, which also include a trade war, US sanctions and Taiwan.

China struck a more aggressive tone in its trade war with the United States on Friday. The tough talk capped a week that saw Beijing unveil fresh retaliatory tariffs.

The US destroyer Preble carried out the operation, a US military spokesman told Reuters.

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/us-president-donald-trump-vows-to-strike-trade-deal-with-china-218837/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

"Preble sailed within 12 nautical miles of Scarborough Reef in order to challenge excessive maritime claims and preserve access to the waterways as governed by international law," said Commander Clay Doss, a spokesman for the Seventh Fleet.

It was the second such US military operation in the South China Sea in the last month. On Wednesday, the chief of the US Navy said its freedom of navigation movements in the disputed South China Sea drew more attention than they deserved.

The US military has a long-standing position that its operations are carried out throughout the world, including areas claimed by allies, and they are separate from political considerations.

The operation was the latest attempt to counter what Washington sees as Beijing's efforts to limit freedom of navigation in the strategic waters, where Chinese, Japanese and some Southeast Asian navies operate.

China claims almost all of the strategic South China Sea and frequently lambasts the United States and its allies over naval operations near Chinese-occupied islands.

Brunei, Indonesia, Malaysia, the Philippines, Taiwan and Vietnam have competing claims in the region.

China and the United States have repeatedly traded barbs in the past over what Washington says is Beijing's militarization of the South China Sea by building military installations on artificial islands and reefs.

China defends its construction as necessary for self-defence and says the United States is responsible for ratcheting up tension in the region by sending warships and military planes close to islands Beijing claims.

Last month, China's navy chief said freedom of navigation should not be used to infringe upon the rights of other nations.

The US military said one of its warships sailed near the disputed Scarborough Shoal claimed by China in the South China Sea on Sunday, a move likely to anger Beijing at a time of tense ties between the world's two biggest economies.

The US military said one of its warships sailed near the disputed Scarborough Shoal claimed by China in the South China Sea on Sunday, a move likely to anger Beijing at a time of tense ties between the world's two biggest economies. The busy waterway is one of a growing number of flashpoints in the US-China relationship, which also include a trade war, US sanctions and Taiwan. China struck a more aggressive tone in its trade war with the United States on Friday. The tough talk capped a week that saw Beijing unveil fresh retaliatory tariffs. The US destroyer Preble carried out the operation, a US military spokesman told Reuters. "Preble sailed within 12 nautical miles of Scarborough Reef in order to challenge excessive maritime claims and preserve access to the waterways as governed by international law," said Commander Clay Doss, a spokesman for the Seventh Fleet. It was the second such US military operation in the South China Sea in the last month. On Wednesday, the chief of the US Navy said its freedom of navigation movements in the disputed South China Sea drew more attention than they deserved. The US military has a long-standing position that its operations are carried out throughout the world, including areas claimed by allies, and they are separate from political considerations. The operation was the latest attempt to counter what Washington sees as Beijing's efforts to limit freedom of navigation in the strategic waters, where Chinese, Japanese and some Southeast Asian navies operate. China claims almost all of the strategic South China Sea and frequently lambasts the United States and its allies over naval operations near Chinese-occupied islands. Brunei, Indonesia, Malaysia, the Philippines, Taiwan and Vietnam have competing claims in the region. China and the United States have repeatedly traded barbs in the past over what Washington says is Beijing's militarization of the South China Sea by building military installations on artificial islands and reefs. China defends its construction as necessary for self-defence and says the United States is responsible for ratcheting up tension in the region by sending warships and military planes close to islands Beijing claims. Last month, China's navy chief said freedom of navigation should not be used to infringe upon the rights of other nations.

US warship sails in disputed South China Sea amid trade tensions

US President Donald Trump on Thursday said that he received a "beautiful letter" from his <a href="https://www.wionews.com/world/as-us-chinese-officials-meet-for-trade-talks-trumps-tariffs-on-china-set-to-take-effect-217361">Chinese counterpart Xi Jinping</a>, adding that he would speak to him amid <a href="https://www.wionews.com/americas/donald-trump-xi-jinping-and-trade-a-high-stakes-game-of-chicken-216697">trade tensions</a> between the world`s two largest economies.

"We were getting very close to a deal and then they started renegotiating the deal. It was their idea to come back. He just wrote me a beautiful letter. I just received it. I`ll probably speak to him by phone," Trump was quoted by USAToday as saying while speaking to reporters at the White House.

Meanwhile, officials from China and the US are participating in the 11th round of high-level economic and trade consultations in a bid to chalk out a deal to stop the trade war between the two countries.

Despite the negotiations, Trump, at times, has threatened to increase tariffs on Chinese products.&nbsp;

But, he has backed down his warning amid signs of progress towards finalising a new trade agreement.

However, Trump on Wednesday had alleged that China "broke the deal," escalating the threat of slapping a new round of tariffs on Beijing.

"You see the tariffs we`re doing? Because they broke the deal! The (Chinese) Vice Premier (Liu He) is flying in tomorrow, good man, but they broke the deal.

They can`t do that...If we don`t make the deal, nothing wrong with taking in over 100 billion a year. We never did that before," Trump had said during a rally.

In response, China threatened to take "necessary countermeasures" if the US increases tariffs on Chinese goods worth USD 200 billion from 10 per cent to 25 per cent from May 10, according to an official statement.

"China deeply regrets this, and will be forced to take necessary countermeasures if the US side puts the tariff measures into effect," Chinese state media quoted an official statement as saying.&nbsp;

They further said that escalating trade frictions are against the interests of "the two peoples as well as people of the world.

"Both the US and China are trying to negotiate a way out of the trade dispute which is ongoing since last year.

Trump met Xi on the sidelines of the G-20 summit in Argentina in December, where both the leaders agreed to hold talks and work towards a trade deal to end the tensions between the two nations.

US President Donald Trump on Thursday said that he received a "beautiful letter" from his Chinese counterpart Xi Jinping, adding that he would speak to him amid trade tensions between the world`s two largest economies.

US President Donald Trump on Thursday said that he received a "beautiful letter" from his Chinese counterpart Xi Jinping, adding that he would speak to him amid trade tensions between the world`s two largest economies. "We were getting very close to a deal and then they started renegotiating the deal. It was their idea to come back. He just wrote me a beautiful letter. I just received it. I`ll probably speak to him by phone," Trump was quoted by USAToday as saying while speaking to reporters at the White House. Meanwhile, officials from China and the US are participating in the 11th round of high-level economic and trade consultations in a bid to chalk out a deal to stop the trade war between the two countries. Despite the negotiations, Trump, at times, has threatened to increase tariffs on Chinese products. But, he has backed down his warning amid signs of progress towards finalising a new trade agreement. However, Trump on Wednesday had alleged that China "broke the deal," escalating the threat of slapping a new round of tariffs on Beijing. "You see the tariffs we`re doing? Because they broke the deal! The (Chinese) Vice Premier (Liu He) is flying in tomorrow, good man, but they broke the deal. They can`t do that...If we don`t make the deal, nothing wrong with taking in over 100 billion a year. We never did that before," Trump had said during a rally. In response, China threatened to take "necessary countermeasures" if the US increases tariffs on Chinese goods worth USD 200 billion from 10 per cent to 25 per cent from May 10, according to an official statement. "China deeply regrets this, and will be forced to take necessary countermeasures if the US side puts the tariff measures into effect," Chinese state media quoted an official statement as saying. They further said that escalating trade frictions are against the interests of "the two peoples as well as people of the world. "Both the US and China are trying to negotiate a way out of the trade dispute which is ongoing since last year. Trump met Xi on the sidelines of the G-20 summit in Argentina in December, where both the leaders agreed to hold talks and work towards a trade deal to end the tensions between the two nations.

Received a 'beautiful letter' from Xi, says Trump amid trade tensions

India wants to keep buying Iranian oil at its current level of about 300,000 barrels per day (bpd), as it negotiates with Washington about <a href="http://www.wionews.com/india-news/india-is-major-buyer-of-iran-oil-us-says-it-may-not-waive-sanctions-after-may-189907">extending a waiver of US&nbsp;sanctions</a> past early May, two sources in India with knowledge of the matter said.

India has reduced its purchases of Iranian oil, but has been in talks on extending a sanctions waiver, known as a significant reduction exception, a senior India official said in January.

The talks come just as trade tensions rise between Washington and New Delhi. The United States is planning to end preferential trade treatment for India that allows duty-free entry for up to $5.6 billion worth of its exports to the United States.

India is the biggest beneficiary of the Generalized System of Preferences, which dates from the 1970s, and ending its participation would be the strongest punitive action that Washington has taken against the country since President Donald Trump took office.

Amid this, New Delhi is asking Washington to be allowed to still buy Iranian oil at current levels of around 1.25 million tonnes per month, equal to about 300,000 bpd, the sources said.

The United States reimposed sanctions against Iran last November in a dispute over Tehran's nuclear and missile ambitions, after President Donald Trump pulled Washington out of a 2015 nuclear deal between Iran and six world powers.

Although the United States granted Iran's biggest oil customers - China, India, Japan, South Korea, Taiwan, Turkey, Italy and Greece - waivers that have allowed them to continue limited imports, Washington is putting pressure on governments to eventually reduce purchases of Iranian oil to zero. The first round of waivers expires around May 4.

Vincent Campos, a spokesman at the US&nbsp;State Department's energy bureau, would not confirm that India was asking the United States to renew its waiver, but said talks are ongoing with the eight consumers of Iran's oil that received waivers in November with the aim of eventually cutting imports to zero.

"We continue to have bilateral discussions" with each of the countries, including India, Campos said.

A US&nbsp;State Department official is this week visiting South Korea, Iran's fourth largest oil customer in Asia, to talk about sanctions, Seoul said.

David Peyman, a deputy assistant secretary for counter threat finance and sanctions, met on Wednesday with Hong Jin-wook, an official specializing in African and Middle Eastern affairs at South Korea's foreign ministry.

Peyman offered "to continue to closely consult on the extension of sanctions exemption and Korean companies’ technical issues regarding trade with Iran," a statement from Seoul's foreign ministry said.

The US&nbsp;State Department did not immediately respond to questions about their talks.

Iran, a member of the Organization of the Petroleum Exporting Countries (OPEC), exported almost 3 million bpd of oil at its pre-sanctions peak, but that has dwindled to around 1.25 million bpd since the start of the year, shipping data from Refinitiv showed.

Talks with Washington on extending the waiver slowed due to the US&nbsp;government shutdown that extended through January, one of the Indian sources said. Talks have now resumed and India wants to get clarity before general elections scheduled in May, the source said.

No immediate comment was available from India's oil or external affairs ministries.

Iran was India's seventh biggest oil supplier in January, as compared with its position as third-biggest a year ago before the reimposition of sanctions.

India wants to keep buying Iranian oil at its current level of about 300,000 barrels per day (bpd), as it negotiates with Washington about extending a waiver of US sanctions past early May, two sources in India with knowledge of the matter said.

India wants to keep buying Iranian oil at its current level of about 300,000 barrels per day (bpd), as it negotiates with Washington about extending a waiver of US sanctions past early May, two sources in India with knowledge of the matter said. India has reduced its purchases of Iranian oil, but has been in talks on extending a sanctions waiver, known as a significant reduction exception, a senior India official said in January. The talks come just as trade tensions rise between Washington and New Delhi. The United States is planning to end preferential trade treatment for India that allows duty-free entry for up to $5.6 billion worth of its exports to the United States. India is the biggest beneficiary of the Generalized System of Preferences, which dates from the 1970s, and ending its participation would be the strongest punitive action that Washington has taken against the country since President Donald Trump took office. Amid this, New Delhi is asking Washington to be allowed to still buy Iranian oil at current levels of around 1.25 million tonnes per month, equal to about 300,000 bpd, the sources said. The United States reimposed sanctions against Iran last November in a dispute over Tehran's nuclear and missile ambitions, after President Donald Trump pulled Washington out of a 2015 nuclear deal between Iran and six world powers. Although the United States granted Iran's biggest oil customers - China, India, Japan, South Korea, Taiwan, Turkey, Italy and Greece - waivers that have allowed them to continue limited imports, Washington is putting pressure on governments to eventually reduce purchases of Iranian oil to zero. The first round of waivers expires around May 4. Vincent Campos, a spokesman at the US State Department's energy bureau, would not confirm that India was asking the United States to renew its waiver, but said talks are ongoing with the eight consumers of Iran's oil that received waivers in November with the aim of eventually cutting imports to zero. "We continue to have bilateral discussions" with each of the countries, including India, Campos said. A US State Department official is this week visiting South Korea, Iran's fourth largest oil customer in Asia, to talk about sanctions, Seoul said. David Peyman, a deputy assistant secretary for counter threat finance and sanctions, met on Wednesday with Hong Jin-wook, an official specializing in African and Middle Eastern affairs at South Korea's foreign ministry. Peyman offered "to continue to closely consult on the extension of sanctions exemption and Korean companies’ technical issues regarding trade with Iran," a statement from Seoul's foreign ministry said. The US State Department did not immediately respond to questions about their talks. Iran, a member of the Organization of the Petroleum Exporting Countries (OPEC), exported almost 3 million bpd of oil at its pre-sanctions peak, but that has dwindled to around 1.25 million bpd since the start of the year, shipping data from Refinitiv showed. Talks with Washington on extending the waiver slowed due to the US government shutdown that extended through January, one of the Indian sources said. Talks have now resumed and India wants to get clarity before general elections scheduled in May, the source said. No immediate comment was available from India's oil or external affairs ministries. Iran was India's seventh biggest oil supplier in January, as compared with its position as third-biggest a year ago before the reimposition of sanctions.

Amid rising trade tensions with US, India seeks to extend Iran oil sanctions waiver

Apple Inc&nbsp;on Wednesday took the rare step of cutting its quarterly sales forecast, with Chief Executive Tim Cook blaming slowing iPhone sales in China, whose economy has been dragged down by uncertainty around U.S.-China trade relations.

The news sent Apple shares tumbling in after-hours trade and triggered a broader selloff in the stock market.

The revenue cut for the just-ended quarter raises questions about whether Apple, the face of American business in many parts of the world, is being punished by Chinese officials or consumers in favour of local rivals such as Huawei Technology Cos Ltd, whose pricey smartphones compete with the iPhone and which has been under discussion by the Trump administration for a possible sales ban over suggestions that its telecommunications equipment could be used to spy on Americans.

Cook told CNBC that Apple products have not been targeted by the Chinese government, though some consumers may have elected not to buy an iPhone or other Apple device because it is an American company.

“The much larger issue is the slowing of the (Chinese) economy, and then the trade tension that has further pressured it,” Cook said.

Some analysts, however, questioned the impact of Apple's own actions, such as its unyielding pursuit of high selling prices for its products.

Apple on Wednesday lowered its forecast to $84 billion in revenue for its fiscal first quarter ended December 29, below analysts' estimate of $91.5 billion, according to IBES data from Refinitiv. Apple originally forecasts revenue of between $89 billion and $93 billion.

"While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China," Cook said in a letter to investors. "In fact, most of our revenue shortfall to our guidance, and over 100 per cent of our year-over-year worldwide revenue decline occurred in Greater China across iPhone, Mac and iPad."

Wednesday was the first time that Apple issued a warning on its revenue guidance ahead of releasing quarterly results since the iPhone was launched in 2007.

Apple shares skidded 7.7 per cent in after-hours trade, dragging the company's market value below $700 billion. In the broader market, the S&amp;P 500 futures&nbsp;fell 1.5 per cent. In the US government bond market, a typical safe-haven, the yield on the benchmark 10- year, which moves inversely to the bond's price, sank to an 11-month low.

Precursors to a warning

Apple's move was not entirely a surprise. In November, the Cupertino, California-based company said it would quit disclosing unit sales data for iPhones and other hardware items, leading many analysts to worry that a drop in iPhone sales was coming. And after several component makers in November forecast weaker-than-expected sales, some market watchers called the peak for iPhones in several key markets.

In November, Cook cited slowing growth in emerging markets such as Brazil, India and Russia for lower-than-anticipated sales estimates for the company's fiscal first quarter. But Cook specifically said he "would not put China in that category" of countries with troubled growth.

That all came before the damage to the Chinese economy from trade tensions with the United States and long-simmering structural issues became evident.

Apple is now the highest-profile multinational corporation to warn that the economic slowdown in China could hurt its business. Automakers such as Ford Motor Co, Hyundai Motor Co and Nissan Motor Co all previously said they planned to cut production in the country.

But Apple has held firm on its premium pricing strategy in China despite the risk of a slower economy.

"The question for investors will be the extent to which Apple’s aggressive pricing has exacerbated this situation and what this means for the company’s longer-term pricing power within its iPhone franchise," James Cordwell, an analyst at Atlantic Equities, told Reuters.

In the latest fiscal year, ended Sept. 29, unit sales of the iPhone were essentially flat from the prior year, while iPhone revenue expanded 18 per cent to $166.7 billion. That growth came entirely from higher prices.

Hal Eddins, chief economist at Apple shareholder Capital Investment Counsel, said Cook's comments on the impact of the U.S. trade tensions with China "might be a dig at (US&nbsp;President Donald) Trump, but mostly he may be using the trade turmoil as an excuse for some missteps they’ve made over the last year."

But some investors were heartened by Apple's plans on using its cash pile.

In his letter, Cook said Apple has $130 billion in net cash and that it intends to continue its efforts to reduce that cash balance to net zero, which the company has so far accomplished through dividend increases and share buybacks.

"We would anticipate the company increasing share buybacks on the weakness to return capital to shareholders at discount prices," said Trip Miller, managing partner at Apple shareholder Gullane Capital Partners.

The news sent Apple shares tumbling in after-hours trade and triggered a broader selloff in the stock market.

Apple Inc on Wednesday took the rare step of cutting its quarterly sales forecast, with Chief Executive Tim Cook blaming slowing iPhone sales in China, whose economy has been dragged down by uncertainty around U.S.-China trade relations. The news sent Apple shares tumbling in after-hours trade and triggered a broader selloff in the stock market. The revenue cut for the just-ended quarter raises questions about whether Apple, the face of American business in many parts of the world, is being punished by Chinese officials or consumers in favour of local rivals such as Huawei Technology Cos Ltd, whose pricey smartphones compete with the iPhone and which has been under discussion by the Trump administration for a possible sales ban over suggestions that its telecommunications equipment could be used to spy on Americans. Cook told CNBC that Apple products have not been targeted by the Chinese government, though some consumers may have elected not to buy an iPhone or other Apple device because it is an American company. “The much larger issue is the slowing of the (Chinese) economy, and then the trade tension that has further pressured it,” Cook said. Some analysts, however, questioned the impact of Apple's own actions, such as its unyielding pursuit of high selling prices for its products. Apple on Wednesday lowered its forecast to $84 billion in revenue for its fiscal first quarter ended December 29, below analysts' estimate of $91.5 billion, according to IBES data from Refinitiv. Apple originally forecasts revenue of between $89 billion and $93 billion. "While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China," Cook said in a letter to investors. "In fact, most of our revenue shortfall to our guidance, and over 100 per cent of our year-over-year worldwide revenue decline occurred in Greater China across iPhone, Mac and iPad." Wednesday was the first time that Apple issued a warning on its revenue guidance ahead of releasing quarterly results since the iPhone was launched in 2007. Apple shares skidded 7.7 per cent in after-hours trade, dragging the company's market value below $700 billion. In the broader market, the S&P 500 futures fell 1.5 per cent. In the US government bond market, a typical safe-haven, the yield on the benchmark 10- year, which moves inversely to the bond's price, sank to an 11-month low. Precursors to a warning Apple's move was not entirely a surprise. In November, the Cupertino, California-based company said it would quit disclosing unit sales data for iPhones and other hardware items, leading many analysts to worry that a drop in iPhone sales was coming. And after several component makers in November forecast weaker-than-expected sales, some market watchers called the peak for iPhones in several key markets. In November, Cook cited slowing growth in emerging markets such as Brazil, India and Russia for lower-than-anticipated sales estimates for the company's fiscal first quarter. But Cook specifically said he "would not put China in that category" of countries with troubled growth. That all came before the damage to the Chinese economy from trade tensions with the United States and long-simmering structural issues became evident. Apple is now the highest-profile multinational corporation to warn that the economic slowdown in China could hurt its business. Automakers such as Ford Motor Co, Hyundai Motor Co and Nissan Motor Co all previously said they planned to cut production in the country. But Apple has held firm on its premium pricing strategy in China despite the risk of a slower economy. "The question for investors will be the extent to which Apple’s aggressive pricing has exacerbated this situation and what this means for the company’s longer-term pricing power within its iPhone franchise," James Cordwell, an analyst at Atlantic Equities, told Reuters. In the latest fiscal year, ended Sept. 29, unit sales of the iPhone were essentially flat from the prior year, while iPhone revenue expanded 18 per cent to $166.7 billion. That growth came entirely from higher prices. Hal Eddins, chief economist at Apple shareholder Capital Investment Counsel, said Cook's comments on the impact of the U.S. trade tensions with China "might be a dig at (US President Donald) Trump, but mostly he may be using the trade turmoil as an excuse for some missteps they’ve made over the last year." But some investors were heartened by Apple's plans on using its cash pile. In his letter, Cook said Apple has $130 billion in net cash and that it intends to continue its efforts to reduce that cash balance to net zero, which the company has so far accomplished through dividend increases and share buybacks. "We would anticipate the company increasing share buybacks on the weakness to return capital to shareholders at discount prices," said Trip Miller, managing partner at Apple shareholder Gullane Capital Partners.

Apple cuts forecast, citing weak China sales amid trade tensions

German Economy Minister Peter Altmaier called on Friday for Europe to remain unified in the face of rising trade tensions with the United States, saying it was unclear how a summit of the Group of Seven rich nations would end.

"We have a serious situation, not just since last night or this morning, but rather the entire last few weeks," Altmaier told broadcaster ZDF.

He underlined the importance of European unity on free trade and economic interests, especially since domestic debate was continuing in the United States about punitive sanctions imposed by President Donald Trump on G7 allies like Canada, Japan and the European Union.

Leaders of G7 nations meeting in Canada from Friday are more divided than at any time in the group's 42-year history, with Trump's "America First" policies at risk of causing a global trade war and deep diplomatic schisms.

Trump has already imposed hefty tariffs on steel and aluminium imports and threatened to do the same for cars. His decisions to withdraw from the 2015 nuclear deal with Iran and a global climate change accord have also fueled tensions.

Altmaier said the EU had long resisted imposing tariffs of its own but had shown it would do so if left with no other choice.

European leaders remained committed to continuing the dialogue with the United States if both sides were willing to make concessions, he said, although there was no sign of that at the moment.

A business leader also expressed concern. Joe Kaeser, chief executive of the engineering group Siemens, warned against deepening the transatlantic trade dispute. "Escalation was never a good answer. That's why we must try to find areas of agreement," he said in Munich.

German Foreign Minister Heiko Maas said the United States remained Germany's closest partner outside Europe. However, there were significant differences that could not be ignored, and Europe needed new partnerships, he told the Sueddeutsche Zeitung.

He took aim at Trump's actions on the Iran deal, trade and climate change, saying the president was willfully ignoring the negative consequences that his decisions would have on Europe and focusing solely on U.S. interests.

"None of that will make the world better, safer or more peaceful," he told the newspaper. "We were used to relying on what had been agreed. That has fundamentally changed."

Maas called for creation of a European security council, an idea backed by Chancellor Angela Merkel, and said ending the current requirement for unanimous decisions on foreign policy and security issues would make the EU more agile.

Maas also called for Europe to forge alliances with other regions, including countries in Africa, Latin America and Asia.

"We have a serious situation, not just since last night or this morning, but rather the entire last few weeks," Altmaier told

German Economy Minister Peter Altmaier called on Friday for Europe to remain unified in the face of rising trade tensions with the United States, saying it was unclear how a summit of the Group of Seven rich nations would end. "We have a serious situation, not just since last night or this morning, but rather the entire last few weeks," Altmaier told broadcaster ZDF. He underlined the importance of European unity on free trade and economic interests, especially since domestic debate was continuing in the United States about punitive sanctions imposed by President Donald Trump on G7 allies like Canada, Japan and the European Union. Leaders of G7 nations meeting in Canada from Friday are more divided than at any time in the group's 42-year history, with Trump's "America First" policies at risk of causing a global trade war and deep diplomatic schisms. Trump has already imposed hefty tariffs on steel and aluminium imports and threatened to do the same for cars. His decisions to withdraw from the 2015 nuclear deal with Iran and a global climate change accord have also fueled tensions. Altmaier said the EU had long resisted imposing tariffs of its own but had shown it would do so if left with no other choice. European leaders remained committed to continuing the dialogue with the United States if both sides were willing to make concessions, he said, although there was no sign of that at the moment. A business leader also expressed concern. Joe Kaeser, chief executive of the engineering group Siemens, warned against deepening the transatlantic trade dispute. "Escalation was never a good answer. That's why we must try to find areas of agreement," he said in Munich. German Foreign Minister Heiko Maas said the United States remained Germany's closest partner outside Europe. However, there were significant differences that could not be ignored, and Europe needed new partnerships, he told the Sueddeutsche Zeitung. He took aim at Trump's actions on the Iran deal, trade and climate change, saying the president was willfully ignoring the negative consequences that his decisions would have on Europe and focusing solely on U.S. interests. "None of that will make the world better, safer or more peaceful," he told the newspaper. "We were used to relying on what had been agreed. That has fundamentally changed." Maas called for creation of a European security council, an idea backed by Chancellor Angela Merkel, and said ending the current requirement for unanimous decisions on foreign policy and security issues would make the EU more agile. Maas also called for Europe to forge alliances with other regions, including countries in Africa, Latin America and Asia.

Germany urges European unity in face of trade tensions with US

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