The United Arab Emirates (UAE) has officially suspended all trade, commercial exchanges, and financial transactions with Iran until further notice. The dramatic shift in economic relations follows a sharp spike in regional hostilities, triggered after the UAE Ministry of Defense detected two ballistic missiles launched from Iran targeting maritime traffic near its coast.  


UAE suspends all trade, financial dealings with Iran

China has announced a fresh round of sanctions targeting multiple U.S.-linked entities while tightening export controls on its globally dominant drone industry, adding another chapter to the ongoing U.S.-China trade tensions.

Beijing's stricter oversight of drone exports could affect international buyers and disrupt global supply chains across sectors including logistics, agriculture, surveillance, and defense. The move is expected to have implications for pricing, availability, and innovation in commercial drone markets.

Meanwhile, public sentiment in China has intensified following U.S. actions against certain Chinese food brands over alleged forced labor concerns. According to reports, many Chinese consumers have criticized the U.S. measures, highlighting how geopolitical disputes are increasingly influencing consumer behavior.

US-China Trade War Escalates | Beijing Targets American Entities and Drone Exports

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?

Donald Trump has intensified the use of tariffs and sanctions as key tools of economic pressure. But are these measures achieving their intended goals? From trade disputes to geopolitical rivalries, questions are growing about the effectiveness of America's economic warfare strategy. This report examines the impact of tariffs, sanctions, and the limits of economic coercion in today's interconnected global economy.

Are Trump's economic weapons 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

China's proposed export restrictions on rare earth minerals could put $6.5 trillion worth of global downstream production at risk if fully implemented. This is according to the International Energy Agency's latest global critical minerals outlook.

IEA warns: China's export controls put $6.5 trillion at risk | World Business Watch  

<p>In recent decades, the trade between the US and China has grown enormously. Currently, China is one of the largest export destinations for US goods and services and vice versa. The development came after China joined the World Trade Organisation (WTO) in 2001. However, this trade development has brought the loss of American jobs due to import competition, automation, and multinational companies moving manufacturing overseas.</p><p>&nbsp;</p><p>Meanwhile, economic tensions between Washington and Beijing have significantly risen over the past 20 years after the US policymakers formulated a progressively assertive course toward China. The development has gone against some of its WTO commitments and taken advantage of gaps in the rules. When China joined the World Trade Organisation, many believed it would gradually become more open, evolve into a freer society, and scale back state control over its economy. However, those anticipated reforms never came to fruition.</p><p>&nbsp;</p><p>Trade tensions between the United States and China sharply worsened during President Donald Trump’s first term in 2018, when tariffs triggered a major trade war. Although both sides later signed the Phase One trade deal, many tariffs remained. President Joe Biden retained and expanded several restrictions, particularly on semiconductor exports. In Trump’s second term, tensions escalated further as China imposed export controls on rare-earth minerals. Despite a February 2026 Supreme Court ruling limiting some tariffs, most remain active. A planned meeting between Trump and Chinese President Xi Jinping was postponed to May.</p><h3>Trade war timeline between the United States and China:</h3><h3><i>Pre-Trade War: Integration and Growth (1979–2016)</i></h3><p><strong>1979:</strong> The US and China normalise relations as China seeks to boost international trade and investment under Deng Xiaoping.</p><p>&nbsp;</p><p><strong>1986:</strong> Beijing formally applies to rejoin the General Agreement on Tariffs and Trade (the predecessor to the WTO).</p><p>&nbsp;</p><p><strong>2000–2007:</strong> Increased trade with China boosts the annual purchasing power of the average US household by $1,500.</p><p>&nbsp;</p><p><strong>December 2001:</strong> China officially joins the WTO, committing to economic reforms, tariff cuts, and IP protection. US imports from China sit at approximately $100 billion.</p><p>&nbsp;</p><p>The George W. Bush Administration has responded to "dumping" and subsidies the US imposes tariffs on specific Chinese goods and launching high-level trade dialogues. In addition, the Barack Obama Administration has also continued dialogues and uses safeguards to impose tariffs on Chinese tyres. Obama blocks two Chinese acquisitions on national security grounds and negotiates the Trans-Pacific Partnership (TPP) to contain China's trade influence.</p><h3>The Trump Era: Outbreak of the Trade War (2017–2020)</h3><p><strong>2017:</strong> President Trump withdrew the U.S. from the TPP shortly after taking office.</p><p>&nbsp;</p><p><strong>2018: </strong>The Trade War begins reaching at the highest point. With the trade deficit hitting a record $377 billion, Trump imposed tariffs on hundreds of billions of dollars worth of solar panels/washing machines and 25 per cent on steel. China retaliates with duties on 128 products, including pork and aluminium.</p><p>&nbsp;</p><p><strong>2018 (July–Sept):</strong> The trade war goes "all-in." The US imposes 25 per cent tariffs on $50 billion of goods, followed by 10 per cent on $200 billion more. China responds by targeting US soybeans and automobiles.</p><p>&nbsp;</p><p><strong>2019</strong>: Tariffs on the $200 billion list are raised to 25 per cent. Global markets face extreme volatility.</p><h3>The "Phase One" Truce (2020–2021)</h3><p><strong>January 2020:</strong> The Phase One Deal was signed. China agrees to buy an additional $200 billion in US goods and services over two years.</p><p>&nbsp;</p><p><strong>2020–2021: </strong>Due to COVID-19 and logistics disruptions, China only purchased about 58 per cent of the committed amount. The US maintains most tariffs.</p><h3>The Tech-War &amp; "De-risking" (2022–2024)</h3><p>The Biden administration shifts the focus from simple trade volumes to national security and high-tech dominance after passing the CHIPS and Science Act in 2022, restricting advanced semiconductor exports to China.</p><p>&nbsp;</p><p><strong>2023: </strong>The US deficit with China begins to shrink as trade is rerouted through Mexico and Vietnam (often called "near-shoring" or "friend-shoring").</p><p>&nbsp;</p><p><strong>2024 (May): </strong>Biden significantly escalates specific tariffs on Electric Vehicles (EVs) to 100 per cent, &nbsp;Solar Cells to 50 per cent, Semiconductors to 50 per cent and Steel/Aluminum to 25 per cent.</p><h3>Radical Escalation &amp; The "Busan Truce" (2025–2026)</h3><p>The second Trump administration (beginning Jan 2025) launched a massive new wave of protectionism.</p><p>&nbsp;</p><p><strong>January 2025:</strong> Trump imposes a blanket 145 per cent tariff on nearly all Chinese imports. China retaliates with a 125% tariff on American goods, essentially halting US agricultural exports.</p><p>&nbsp;</p><p><strong>October 2025:</strong> Following a market crash and global supply chain panic, the two leaders meet in Busan, South Korea. They negotiate a one-year "Busan Truce," lowering US tariffs on Chinese imports from 57 per cent to 47 per cent to stabilise the global economy.</p><p>&nbsp;</p><p><strong>Early 2026:</strong> Despite the truce, US-China trade continues to decline. Bilateral trade fell by 11% year-on-year in early 2026.</p><p>&nbsp;</p><p><strong>Also read:</strong> <a href="https://www.wionews.com/world/iran-backs-xi-jinping-s-four-point-proposal-ahead-of-trump-s-china-visit-1778581011682">Iran backs Xi Jinping’s four-point proposal ahead of Trump’s China visit</a></p>

After China joined the WTO, it was believed that trade would gradually become more open, evolve into a freer society, and scale back state control over its economy. However, those anticipated reforms never came to fruition.

In recent decades, the trade between the US and China has grown enormously. Currently, China is one of the largest export destinations for US goods and services and vice versa. The development came after China joined the World Trade Organisation (WTO) in 2001. However, this trade development has brought the loss of American jobs due to import competition, automation, and multinational companies moving manufacturing overseas. Meanwhile, economic tensions between Washington and Beijing have significantly risen over the past 20 years after the US policymakers formulated a progressively assertive course toward China. The development has gone against some of its WTO commitments and taken advantage of gaps in the rules. When China joined the World Trade Organisation, many believed it would gradually become more open, evolve into a freer society, and scale back state control over its economy. However, those anticipated reforms never came to fruition. Trade tensions between the United States and China sharply worsened during President Donald Trump’s first term in 2018, when tariffs triggered a major trade war. Although both sides later signed the Phase One trade deal, many tariffs remained. President Joe Biden retained and expanded several restrictions, particularly on semiconductor exports. In Trump’s second term, tensions escalated further as China imposed export controls on rare-earth minerals. Despite a February 2026 Supreme Court ruling limiting some tariffs, most remain active. A planned meeting between Trump and Chinese President Xi Jinping was postponed to May. Trade war timeline between the United States and China: Pre-Trade War: Integration and Growth (1979–2016) 1979: The US and China normalise relations as China seeks to boost international trade and investment under Deng Xiaoping. 1986: Beijing formally applies to rejoin the General Agreement on Tariffs and Trade (the predecessor to the WTO). 2000–2007: Increased trade with China boosts the annual purchasing power of the average US household by $1,500. December 2001: China officially joins the WTO, committing to economic reforms, tariff cuts, and IP protection. US imports from China sit at approximately $100 billion. The George W. Bush Administration has responded to "dumping" and subsidies the US imposes tariffs on specific Chinese goods and launching high-level trade dialogues. In addition, the Barack Obama Administration has also continued dialogues and uses safeguards to impose tariffs on Chinese tyres. Obama blocks two Chinese acquisitions on national security grounds and negotiates the Trans-Pacific Partnership (TPP) to contain China's trade influence. The Trump Era: Outbreak of the Trade War (2017–2020) 2017: President Trump withdrew the U.S. from the TPP shortly after taking office. 2018: The Trade War begins reaching at the highest point. With the trade deficit hitting a record $377 billion, Trump imposed tariffs on hundreds of billions of dollars worth of solar panels/washing machines and 25 per cent on steel. China retaliates with duties on 128 products, including pork and aluminium. 2018 (July–Sept): The trade war goes "all-in." The US imposes 25 per cent tariffs on $50 billion of goods, followed by 10 per cent on $200 billion more. China responds by targeting US soybeans and automobiles. 2019: Tariffs on the $200 billion list are raised to 25 per cent. Global markets face extreme volatility. The "Phase One" Truce (2020–2021) January 2020: The Phase One Deal was signed. China agrees to buy an additional $200 billion in US goods and services over two years. 2020–2021: Due to COVID-19 and logistics disruptions, China only purchased about 58 per cent of the committed amount. The US maintains most tariffs. The Tech-War & "De-risking" (2022–2024) The Biden administration shifts the focus from simple trade volumes to national security and high-tech dominance after passing the CHIPS and Science Act in 2022, restricting advanced semiconductor exports to China. 2023: The US deficit with China begins to shrink as trade is rerouted through Mexico and Vietnam (often called "near-shoring" or "friend-shoring"). 2024 (May): Biden significantly escalates specific tariffs on Electric Vehicles (EVs) to 100 per cent, Solar Cells to 50 per cent, Semiconductors to 50 per cent and Steel/Aluminum to 25 per cent. Radical Escalation & The "Busan Truce" (2025–2026) The second Trump administration (beginning Jan 2025) launched a massive new wave of protectionism. January 2025: Trump imposes a blanket 145 per cent tariff on nearly all Chinese imports. China retaliates with a 125% tariff on American goods, essentially halting US agricultural exports. October 2025: Following a market crash and global supply chain panic, the two leaders meet in Busan, South Korea. They negotiate a one-year "Busan Truce," lowering US tariffs on Chinese imports from 57 per cent to 47 per cent to stabilise the global economy. Early 2026: Despite the truce, US-China trade continues to decline. Bilateral trade fell by 11% year-on-year in early 2026. Also read: Iran backs Xi Jinping’s four-point proposal ahead of Trump’s China visit

<p>After China joined the WTO, it was believed that trade would gradually become more open, evolve into a freer society, and scale back state control over its economy. However, those anticipated reforms never came to fruition.</p>

Years of tensions: The complete timeline of the US-China trade conflict

China has announced zero tariffs on nearly all imports from 53 African countries, expanding a policy that earlier covered only the least-developed economies. The exemption will remain in place till April 2028.

China Builds Trade Ties as US Raises Barriers

Overall imports rose by 5% in November, while the value of exports fell by 3.6%. Weekly initial jobless claims were little changed.

US Imports Rose 5% in November Driven by Demand 

US President Donald Trump has injected fresh uncertainty into global trade by threatening a 25 percent tariff on any country that continues doing business with Iran, a move he says is effective immediately. Framed as part of a renewed maximum pressure campaign on Tehran, the threat could destabilise the fragile US China trade truce and send shockwaves through global markets.


US-China Trade War: Trump Risks Imploding US China Trade Truce with Iran Tariff

In October, the US Trade gap shrank to its lowest level since 2009, a year after the financial crisis.
That is largely due to a pullback in imports, especially of pharma preparations and gold.


US Trade Gap Shrinks to Smallest Since 2009

The United States has imposed its toughest sanctions yet on Russia since the Ukraine war began.
This time directly targeting Moscow's two largest oil companies.
President trump's announcement signals a major policy shift to pressure both sides to the negotiating table.

 U.S. Targets Russia’s Oil With Sanctions | WORLD BUSINESS WATCH | WION

The United States has imposed new sanctions on major Russian oil companies as part of its ongoing strategy to pressure Moscow amid geopolitical tensions. This move could have significant impacts on the global energy market and international relations. Stay tuned for the latest updates and expert insights.

US-Russia Tensions: US Imposes Sanctions on Russian Oil Firms Amid Rising Tensions | WORLD DNA 

Official data show imports and exports surged past 385 billion dollars, in the first nine months of this year.
Lets take a look at the latest customs data.

US-China Trade: Amid Trade War With US, China’s Trade With SCO Partners Reaches Record High

<p>US President Donald Trump's move to slap high tariffs and begin a trade war across the world was not just for prospering America's economy, as he claims, but was also aimed at serving the interests of individual companies, including Elon Musk's Starlink, a Washington Post report stated, citing internal government documents obtained by the outlet.</p><p>&nbsp;</p><p>With imposing a whopping 50 per cent tariff on India, citing the imports of Russian oil amid the Ukraine war, asking Israel to eliminate a Chinese company's control of a key port and also pushing South Korea to publicly support deploying US troops to deter China, Trump has taken several measures amid his ongoing trade war, the documents read.</p><p>&nbsp;</p><p>In the eight-page documents of "supplemental negotiating objectives", US officials acknowledged that potential accords would cover issues, including military basing, which is not usually found in a trade agreement.</p><p>&nbsp;</p><p>The US officials also discussed forcing other nations to provide concessions for individual companies, including Elon Musk's Starlink and Chevron, which is one of the world's 10 largest oil producers.</p><p>&nbsp;</p><p>The documents also revealed that in the first weeks after Trump paused his "reciprocal tariffs", the US officials made plans to press countries near China for better defence relations, including the purchase of US equipment and port visits.</p><p>&nbsp;</p><p>“This is the first time I’ve seen that type of request in a trade agreement. When you’re sitting at the negotiating table, you’re not talking about this stuff,” Wendy Cutler, who spent more than a quarter century in the Office of the US Trade Representative, said.</p><p>&nbsp;</p><p>One State Department employee, who spoke on the condition of anonymity, said, "The document sent shock waves through the government. This isn't normally how it works."</p><p>&nbsp;</p><p>In the past months, Trump has mixed trade and other unrelated issues, which have concerned him. He threatened Brazil to halt its prosecution of former president Jair Bolsonaro, or face 50 per cent tariffs.</p><p>In January, he threatened to impose tariffs on Colombian goods unless the leader agreed to accept deported migrants.</p>

The US officials also discussed forcing other nations to provide concessions for individual companies, including Elon Musk's Starlink and Chevron, which is one of the world's 10 largest oil producers.

US President Donald Trump's move to slap high tariffs and begin a trade war across the world was not just for prospering America's economy, as he claims, but was also aimed at serving the interests of individual companies, including Elon Musk's Starlink, a Washington Post report stated, citing internal government documents obtained by the outlet. With imposing a whopping 50 per cent tariff on India, citing the imports of Russian oil amid the Ukraine war, asking Israel to eliminate a Chinese company's control of a key port and also pushing South Korea to publicly support deploying US troops to deter China, Trump has taken several measures amid his ongoing trade war, the documents read. In the eight-page documents of "supplemental negotiating objectives", US officials acknowledged that potential accords would cover issues, including military basing, which is not usually found in a trade agreement. The US officials also discussed forcing other nations to provide concessions for individual companies, including Elon Musk's Starlink and Chevron, which is one of the world's 10 largest oil producers. The documents also revealed that in the first weeks after Trump paused his "reciprocal tariffs", the US officials made plans to press countries near China for better defence relations, including the purchase of US equipment and port visits. “This is the first time I’ve seen that type of request in a trade agreement. When you’re sitting at the negotiating table, you’re not talking about this stuff,” Wendy Cutler, who spent more than a quarter century in the Office of the US Trade Representative, said. One State Department employee, who spoke on the condition of anonymity, said, "The document sent shock waves through the government. This isn't normally how it works." In the past months, Trump has mixed trade and other unrelated issues, which have concerned him. He threatened Brazil to halt its prosecution of former president Jair Bolsonaro, or face 50 per cent tariffs. In January, he threatened to impose tariffs on Colombian goods unless the leader agreed to accept deported migrants.

<p>The US officials also discussed forcing other nations to provide concessions for individual companies, including Elon Musk's Starlink and Chevron, which is one of the world's 10 largest oil producers.</p>

Trump's tariff twist: Shocking documents reveal boost for big corporate allies – including Musk's Starlink

Tariffs remain a key tool for governments to protect domestic industries and regulate trade. Despite ongoing globalisation and trade agreements, many countries continue to impose high import duties on specific products or sectors.

Which countries have the highest tariffs in 2025?

Tariffs are increasingly used as a tool of leverage in trade negotiations. Countries may impose or threaten tariffs to extract concessions in trade talks, as seen during the US–China trade war or the US–India tariff disputes under the Trump administration.

What are tariffs and why are they called a financial weapon?

<p>US President Donald Trump said on Thursday (Aug 7) that his tariff regime has begun, and money is now flowing into America. In a social media post, the US president said that countries that have taken advantage of the US for many years will now pay. He also slammed the US courts, saying that "only a radical left court" wants to see the country fall. Just before midnight, he had declared in a social media post that 'reciprocal tariffs take effect at midnight tonight'. On August 1, Trump issued an executive order late on Thursday (July 31) to increase and modify tariffs on its trading partners, citing an ongoing national emergency. This was in continuation of his ‘Liberation Day’ tariffs that he announced on April 2. He had paused the April 2 tariffs, giving countries a window of 90 days to sign a trade deal with America. The new tariff structure ranged from 10 per cent to 41 per cent, depending on the country and product type. He then announced additional tariffs on India for buying Russian oil and warned about doing the same with other nations.</p>

<h2>Trump's additional 25 per cent tariff on India</h2><p>Trump signed an executive order on Wednesday (Aug 6) announcing that India will face an extra 25 per cent tariff over and above the 25 per cent rate announced last week. While the 25 per cent rate is effective from August 7, 2025, the newly announced additional tariff will come into place 21 days from now. "The ad valorem duty imposed...shall be in addition to any other duties, fees, taxes, exactions, and charges applicable to such imports...," the order said. "I find that the Government of India is currently directly or indirectly importing Russian Federation oil. Accordingly, and as consistent with applicable law, articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25 percent," it said.</p><p>&nbsp;</p><p>The Ministry of External Affairs reacted to the additional import tariff and called it “unfair, unjustified and unreasonable”, adding that “India will take all actions necessary to protect its national interests”. "The United States has in recent days targeted India’s oil imports from Russia. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India," said the MEA in its statement.</p>

US President Trump announced the start of his tariff regime, claiming it brings money into the US. He criticised countries for exploiting the US and slammed a "radical left" court. He added that reciprocal tariffs would take effect at midnight.

US President Donald Trump said on Thursday (Aug 7) that his tariff regime has begun, and money is now flowing into America. In a social media post, the US president said that countries that have taken advantage of the US for many years will now pay. He also slammed the US courts, saying that "only a radical left court" wants to see the country fall. Just before midnight, he had declared in a social media post that 'reciprocal tariffs take effect at midnight tonight'. On August 1, Trump issued an executive order late on Thursday (July 31) to increase and modify tariffs on its trading partners, citing an ongoing national emergency. This was in continuation of his ‘Liberation Day’ tariffs that he announced on April 2. He had paused the April 2 tariffs, giving countries a window of 90 days to sign a trade deal with America. The new tariff structure ranged from 10 per cent to 41 per cent, depending on the country and product type. He then announced additional tariffs on India for buying Russian oil and warned about doing the same with other nations.

<p>US President Trump announced the start of his tariff regime, claiming it brings money into the US. He criticised countries for exploiting the US and slammed a "radical left" court. He added that reciprocal tariffs would take effect at midnight.</p>

'IT’S MIDNIGHT': Trump tariffs in effect NOW, US president points out only thing stopping America's 'greatness'

<p>US President Donald Trump entered his second term with a powerful economic weapon: tariffs. Despite delays and repeated threats that earned him the nickname “TACO” (Trump Always Chickens Out), the policy has brought in nearly $50bn in extra customs revenues and left most trading partners on the back foot and in fear of striking back.</p><h2><strong>US customs revenue hits record high</strong></h2><p>According to figures released by the US Treasury, the United States collected $64bn in customs duties during the second quarter of 2025, a $47bn increase from the same period last year. This follows four months of heightened tariffs imposed under Trump’s economic agenda. While the trade war Trump initiated has faced threats of retaliation, only two countries, China and Canada, have retaliated so far.</p><p><strong>Also read: </strong><a href="https://www.wionews.com/world/-can-t-let-russia-lose-china-backs-russia-after-trump-s-50-day-ultimatum-over-ukraine-war-xi-says-trust-with-moscow-has-deepened-1752587881335"><strong>‘Can’t let Russia lose’: China backs Russia after Trump’s 50-day ULTIMATUM over Ukraine war; Xi says trust with Moscow has 'deepened'</strong></a></p><h2><strong>Why are most countries holding back against in Trump's trade war?</strong></h2><p>As per economists, the reason for limited retaliation is that the US remains the centre of the global trade system. Trump’s threats of even higher tariffs and potential damage to trade relationships have left many nations opting to negotiate rather than retaliate. The European Union, for instance, has delayed counter-tariffs multiple times, instead linking their response to an August 1 deadline for talks. Even Canada, despite initial pushback, has scaled back its retaliatory approach. Mexico, the US’s biggest trading partner, declined to retaliate entirely, with President Claudia Sheinbaum saying she wants negotiation over confrontation.</p><h2><strong>Trump’s tariffs and the global supply chain</strong></h2><p>Although US tariffs are now at levels not seen since the 1930s, they have not triggered a global trade collapse. Supply chain analysts note that international companies are spreading costs globally to shield the US market from the full burden of rising prices. Trump’s approach appears calculated, applying pressure, then offering deals, often individually. This strategy has faced limited resistance and allowed the US to maintain leverage.</p><h2><strong>China and Canada step back; EU treads carefully</strong></h2><p>In April, China matched Trump’s tariffs with retaliatory measures. But when Chinese exports to the US fell by a third in May, both sides stepped back and agreed to a 90-day pause. Tariffs were scaled back from 145% to 30%. Canada, meanwhile, imposed C$155bn in retaliatory duties earlier this year but has since softened its stance. Despite election promises to confront Trump, Canadian Prime Minister Mark Carney dropped a digital tax and refused to match recent US tariff hikes on steel. With 20% of Canada’s GDP tied to US trade, compared to just 2% for the US, the economic pressure on Canada is higher.</p><p>When the European Commission published a list of potential countermeasures targeting €72bn worth of US goods, it stopped short of assigning tariff rates. Officials hoped this move would avoid provoking Trump while leaving space for compromise. EU Trade Commissioner Maroš Šefčovič warned that a 30% tariff on European exports would make transatlantic trade “almost impossible” and hinted at possible joint responses with other nations. Still, Brussels has largely chosen caution over confrontation.</p>

Despite doubts, US President Donald Trump is apparently winning the trade war he started four months back. As his August 1 tariff deadline looms, the US has already raked in 50 billion in extra customs revenues.

US President Donald Trump entered his second term with a powerful economic weapon: tariffs. Despite delays and repeated threats that earned him the nickname “TACO” (Trump Always Chickens Out), the policy has brought in nearly $50bn in extra customs revenues and left most trading partners on the back foot and in fear of striking back. US customs revenue hits record high According to figures released by the US Treasury, the United States collected $64bn in customs duties during the second quarter of 2025, a $47bn increase from the same period last year. This follows four months of heightened tariffs imposed under Trump’s economic agenda. While the trade war Trump initiated has faced threats of retaliation, only two countries, China and Canada, have retaliated so far. Also read: ‘Can’t let Russia lose’: China backs Russia after Trump’s 50-day ULTIMATUM over Ukraine war; Xi says trust with Moscow has 'deepened' Why are most countries holding back against in Trump's trade war? As per economists, the reason for limited retaliation is that the US remains the centre of the global trade system. Trump’s threats of even higher tariffs and potential damage to trade relationships have left many nations opting to negotiate rather than retaliate. The European Union, for instance, has delayed counter-tariffs multiple times, instead linking their response to an August 1 deadline for talks. Even Canada, despite initial pushback, has scaled back its retaliatory approach. Mexico, the US’s biggest trading partner, declined to retaliate entirely, with President Claudia Sheinbaum saying she wants negotiation over confrontation. Trump’s tariffs and the global supply chain Although US tariffs are now at levels not seen since the 1930s, they have not triggered a global trade collapse. Supply chain analysts note that international companies are spreading costs globally to shield the US market from the full burden of rising prices. Trump’s approach appears calculated, applying pressure, then offering deals, often individually. This strategy has faced limited resistance and allowed the US to maintain leverage. China and Canada step back; EU treads carefully In April, China matched Trump’s tariffs with retaliatory measures. But when Chinese exports to the US fell by a third in May, both sides stepped back and agreed to a 90-day pause. Tariffs were scaled back from 145% to 30%. Canada, meanwhile, imposed C$155bn in retaliatory duties earlier this year but has since softened its stance. Despite election promises to confront Trump, Canadian Prime Minister Mark Carney dropped a digital tax and refused to match recent US tariff hikes on steel. With 20% of Canada’s GDP tied to US trade, compared to just 2% for the US, the economic pressure on Canada is higher. When the European Commission published a list of potential countermeasures targeting €72bn worth of US goods, it stopped short of assigning tariff rates. Officials hoped this move would avoid provoking Trump while leaving space for compromise. EU Trade Commissioner Maroš Šefčovič warned that a 30% tariff on European exports would make transatlantic trade “almost impossible” and hinted at possible joint responses with other nations. Still, Brussels has largely chosen caution over confrontation.

<p>Despite doubts, US President Donald Trump is apparently winning the trade war he started four months back. As his August 1 tariff deadline looms, the US has already raked in 50 billion in extra customs revenues.</p>

‘Trump Always Chickens Out’? Not really: US president is winning this trade war - Here’s how US raked in $50 BILLION as world backed down

<p>US President Donald Trump, who launched a fresh round of global trade war by threatening a host of countries with additional tariffs, said on Monday night that his country is close to reaching a trade deal with India. Trump made the revelation at the White House while he hosted Israeli Prime Minister Benjamin Netanyahu.</p><p>&nbsp;</p><p>Before meeting the Israeli PM, Donald Trump announced tariffs for 14 nations, including strategic&nbsp;allies like Japan. He later said that he had sent letters to the nations that weren't in talks with the US for trade deals.</p><p>&nbsp;</p><p>Speaking with reporters, Donald Trump pointed out that the US had already entered trade deals with China and the United Kingdom and is in the process of finalising a trade deal with New Delhi.</p><p>&nbsp;</p><p>"We've spoken to everybody...it's all done, I told you we'll make some deals, but for the most part, we're going to send a letter. We're going to say, 'Welcome to the United States, if you'd like to participate in the greatest, most successful country ever'. I mean, we are doing better than ever... We've never had numbers like this. We've never had investments like this. We have more than 90... we have much more than 90. But most of those are going to be sent to the&nbsp;letter. This is exactly what I said. Now we've made a deal with the United Kingdom. We've made a deal with China. We're close to making a deal with India. Others we met with, and we don't think we're going to be able to make a deal. So we just send them a letter," he said.&nbsp;</p><p>&nbsp;</p><p>Trump said that the letters would detail how much tariffs the respective countries are liable to pay. He said the US wouldn't be unfair.</p><p>&nbsp;</p><p>"If you want to play ball, ...this is what you have to pay... As far as I'm concerned, we're done. We're sending out letters to various countries telling them how much tariffs they have to pay. Some will maybe adjust a little bit, depending on whether they have a cause. We're not going to be unfair about it and actually, it's a small fraction compared to what we should be getting. We should be, we could be asking for much more. But for the sake of relationships that we've had with a lot of really good countries, we're doing it the way I do it. We could be getting a lot more. We could ask for a lot more than what we're asking for," he added.</p><p>&nbsp;</p><p>Trump announced additional tariffs on 14 nations,&nbsp;including Thailand, Myanmar, Bangladesh, South Korea, and Japan. He said the new taxes will be imposed with effect from August 1.</p><p>&nbsp;</p><p>According to the letters, Thailand and Cambodia each will face a tariff of 36 per cent,&nbsp;while Bangladesh and Serbia will each be hit with a tariff of 35 per cent. In the letters, Trump mentioned that Malaysia and Kazakhstan will each face 25 per cent tariffs.</p>

US President Donald Trump, who launched a fresh round of global trade war by threatening a host of countries with additional tariffs, said on Monday night that his country is close to reaching a trade deal with India. 

US President Donald Trump, who launched a fresh round of global trade war by threatening a host of countries with additional tariffs, said on Monday night that his country is close to reaching a trade deal with India. Trump made the revelation at the White House while he hosted Israeli Prime Minister Benjamin Netanyahu. Before meeting the Israeli PM, Donald Trump announced tariffs for 14 nations, including strategic allies like Japan. He later said that he had sent letters to the nations that weren't in talks with the US for trade deals. Speaking with reporters, Donald Trump pointed out that the US had already entered trade deals with China and the United Kingdom and is in the process of finalising a trade deal with New Delhi. "We've spoken to everybody...it's all done, I told you we'll make some deals, but for the most part, we're going to send a letter. We're going to say, 'Welcome to the United States, if you'd like to participate in the greatest, most successful country ever'. I mean, we are doing better than ever... We've never had numbers like this. We've never had investments like this. We have more than 90... we have much more than 90. But most of those are going to be sent to the letter. This is exactly what I said. Now we've made a deal with the United Kingdom. We've made a deal with China. We're close to making a deal with India. Others we met with, and we don't think we're going to be able to make a deal. So we just send them a letter," he said. Trump said that the letters would detail how much tariffs the respective countries are liable to pay. He said the US wouldn't be unfair. "If you want to play ball, ...this is what you have to pay... As far as I'm concerned, we're done. We're sending out letters to various countries telling them how much tariffs they have to pay. Some will maybe adjust a little bit, depending on whether they have a cause. We're not going to be unfair about it and actually, it's a small fraction compared to what we should be getting. We should be, we could be asking for much more. But for the sake of relationships that we've had with a lot of really good countries, we're doing it the way I do it. We could be getting a lot more. We could ask for a lot more than what we're asking for," he added. Trump announced additional tariffs on 14 nations, including Thailand, Myanmar, Bangladesh, South Korea, and Japan. He said the new taxes will be imposed with effect from August 1. According to the letters, Thailand and Cambodia each will face a tariff of 36 per cent, while Bangladesh and Serbia will each be hit with a tariff of 35 per cent. In the letters, Trump mentioned that Malaysia and Kazakhstan will each face 25 per cent tariffs.

<p>Speaking with reporters, Donald Trump pointed out that the US had already entered trade deals with China and the United Kingdom.</p>

Donald Trump makes big 'trade deal' announcement for India amid tariff worries

<p dir="ltr"><span>China&rsquo;s central bank is taking steps to stimulate the economy by cutting key policy rates in a bid to boost growth amid growing economic uncertainty and trade woes.</span></p>
<p dir="ltr"><span>The People's Bank of China (PBOC) said that it would lower the borrowing cost of its seven-day reverse repurchase rates by 10 basis points to 1.40 per cent from 1.50 per cent, according to an online statement, taking effect from May 08.</span></p>
<p dir="ltr"><span>The seven-day reverse repo rate now serves as the economy's main policy rate. A reduction in the borrowing cost could lead to similar cuts to other market rates and interest rates on other liquidity tools. The PBOC previously lowered the seven-day reverse repo rate by 20 basis points (bps) in September 2024.</span></p>
<p dir="ltr"><span>The central bank will also lower the reserve requirement ratio (RRR), which determines the amount of cash banks must hold in reserves, by 50 basis points, which will give additional liquidity of 1000 billion yuan ($138.6 billion) to the market.</span></p>
<p dir="ltr"><span>PBOC Governor Pan Gongsheng reiterated that officials will implement a &ldquo;moderately loose&rdquo; monetary policy, which will translate into ample liquidity and ensure funding with relatively low financing costs. The RRR cut can enhance the stability of bank liabilities, he said.</span></p>
<p dir="ltr"><span>This move is notable as China has focused more on stabilising its currency and managing bond market risks, rather than stimulating growth. But with the economy under pressure from trade tensions and internal demand softness, priorities are shifting.</span><span><br><br></span></p>
<h2 dir="ltr"><span>U.S.-China trade talk</span></h2>
<p dir="ltr"><span>The timing is significant as China&rsquo;s Vice Premier He Lifeng is scheduled to meet U.S. Treasury Secretary Scott Bessent later this week in Switzerland&mdash;the first confirmed trade talks between the countries since President Donald Trump announced sweeping tariffs, led by punishing levies on China.</span></p>
<p dir="ltr"><span>Bessent, in an interview on </span><span>Fox News</span><span>, said the talks will centre on de-escalation rather than a big trade deal. And President Trump also recently said that he is willing to lower tariffs on China at some point, but also said this week that the U.S. is &ldquo;losing nothing&rdquo; by not trading with Beijing.</span></p>
<p dir="ltr"><span>After the talks were announced, China&rsquo;s Ministry of Commerce said in a statement that the U.S. should &ldquo;show sincerity&rdquo; in the upcoming talks, correct wrong practices and resolve the concerns of both sides through &ldquo;equal consultation&rdquo;.</span></p>
<p dir="ltr"><span>The two nations have locked horns ever since Trump ratcheted up tariffs on Chinese goods to 145 per cent, prompting Beijing to retaliate with additional levies of 125 per cent on imports from the U.S.</span></p>
<p><b>&nbsp;</b></p>
<h2 dir="ltr"><span>Other key announcements</span></h2>
<p dir="ltr"><span>In a broader push to stabilise growth, China has also announced measures to support several key sectors, including technology and real estate, along with establishing a 500-billion-yuan (almost $692 million) relending tool for services consumption and elderly care. It has been announced that the quota for technology relending loans will increase to 800 billion yuan (approximately $1.1 billion) to support equipment upgrading, a consumer goods trade-in programme.</span></p>
<p dir="ltr"><span>The country&rsquo;s central bank plans to cut the mortgage rates under China&rsquo;s housing provident fund, a government-backed housing lender, by 25 basis points, and the rates on five-year loans for first-time homebuyers will be trimmed to 2.6 per cent from 2.85 per cent. PBOC will also gradually lower the amount of cash that auto financial companies and leasing firms must hold in reserves to zero from the current 5 per cent.</span></p>
<p dir="ltr"><span>PBOC expanded the allowance for the relending tool for agriculture and small and medium-sized enterprises by 300 billion yuan (around $415 million), along with combining two stock market support tools with a total quota of 800 billion yuan (about $1.1 billion).</span></p>
<p dir="ltr"><span>A debt risk-sharing tool will also be created, allowing the PBOC to provide low-cost relending funds to encourage purchases of bonds of technology firms.</span></p>
<p dir="ltr"><span>China is preparing more measures to support small and medium enterprises and the private sector, which will be announced soon, Li Yunze, the head of the financial regulatory administration, said at the briefing.</span></p>
<p dir="ltr"><span>The broad stimulus announcement showed the officials were acting with greater urgency to bolster the economy. Beijing had largely opted for piecemeal stimulus measures this year, while hinting that it had sufficient policy firepower to use &ldquo;when appropriate&rdquo;.<br></span></p>
<p dir="ltr"><span>(<em>With inputs from agencies</em>)</span></p>

Business & Economy: PBOC lowers the borrowing cost of its seven-day reverse repurchase rates by 10 basis points to 1.40 per cent, taking effect from May 08.

China’s central bank is taking steps to stimulate the economy by cutting key policy rates in a bid to boost growth amid growing economic uncertainty and trade woes. The People's Bank of China (PBOC) said that it would lower the borrowing cost of its seven-day reverse repurchase rates by 10 basis points to 1.40 per cent from 1.50 per cent, according to an online statement, taking effect from May 08. The seven-day reverse repo rate now serves as the economy's main policy rate. A reduction in the borrowing cost could lead to similar cuts to other market rates and interest rates on other liquidity tools. The PBOC previously lowered the seven-day reverse repo rate by 20 basis points (bps) in September 2024. The central bank will also lower the reserve requirement ratio (RRR), which determines the amount of cash banks must hold in reserves, by 50 basis points, which will give additional liquidity of 1000 billion yuan ($138.6 billion) to the market. PBOC Governor Pan Gongsheng reiterated that officials will implement a “moderately loose” monetary policy, which will translate into ample liquidity and ensure funding with relatively low financing costs. The RRR cut can enhance the stability of bank liabilities, he said. This move is notable as China has focused more on stabilising its currency and managing bond market risks, rather than stimulating growth. But with the economy under pressure from trade tensions and internal demand softness, priorities are shifting. U.S.-China trade talk The timing is significant as China’s Vice Premier He Lifeng is scheduled to meet U.S. Treasury Secretary Scott Bessent later this week in Switzerland—the first confirmed trade talks between the countries since President Donald Trump announced sweeping tariffs, led by punishing levies on China. Bessent, in an interview on Fox News, said the talks will centre on de-escalation rather than a big trade deal. And President Trump also recently said that he is willing to lower tariffs on China at some point, but also said this week that the U.S. is “losing nothing” by not trading with Beijing. After the talks were announced, China’s Ministry of Commerce said in a statement that the U.S. should “show sincerity” in the upcoming talks, correct wrong practices and resolve the concerns of both sides through “equal consultation”. The two nations have locked horns ever since Trump ratcheted up tariffs on Chinese goods to 145 per cent, prompting Beijing to retaliate with additional levies of 125 per cent on imports from the U.S. Other key announcements In a broader push to stabilise growth, China has also announced measures to support several key sectors, including technology and real estate, along with establishing a 500-billion-yuan (almost $692 million) relending tool for services consumption and elderly care. It has been announced that the quota for technology relending loans will increase to 800 billion yuan (approximately $1.1 billion) to support equipment upgrading, a consumer goods trade-in programme. The country’s central bank plans to cut the mortgage rates under China’s housing provident fund, a government-backed housing lender, by 25 basis points, and the rates on five-year loans for first-time homebuyers will be trimmed to 2.6 per cent from 2.85 per cent. PBOC will also gradually lower the amount of cash that auto financial companies and leasing firms must hold in reserves to zero from the current 5 per cent. PBOC expanded the allowance for the relending tool for agriculture and small and medium-sized enterprises by 300 billion yuan (around $415 million), along with combining two stock market support tools with a total quota of 800 billion yuan (about $1.1 billion). A debt risk-sharing tool will also be created, allowing the PBOC to provide low-cost relending funds to encourage purchases of bonds of technology firms. China is preparing more measures to support small and medium enterprises and the private sector, which will be announced soon, Li Yunze, the head of the financial regulatory administration, said at the briefing. The broad stimulus announcement showed the officials were acting with greater urgency to bolster the economy. Beijing had largely opted for piecemeal stimulus measures this year, while hinting that it had sufficient policy firepower to use “when appropriate”. (With inputs from agencies)

China cuts key rates, boosts liquidity ahead of US trade talk

<p>US President Donald Trump on Tuesday (May 6) completely scraped off reducing tariffs on Canada, saying that there's nothing Canadian Prime Minister Mark Carney can say to lift <a href="https://www.wionews.com/tags/us-tariffs">US tariffs</a>.&nbsp;</p>
<p>During meeting with the Canadian PM, a reporter asked if there is anything Carney can say to him that would make him lift the tariffs on Canada. To this, Trump replied, "No, that's just the way it is." &nbsp;</p>
<p>Trump said that "this is a very friendly conversation" with Carney but that the US wants to make its own cars.&nbsp;</p>
<p><strong>Also read: <a href="https://www.wionews.com/world/wonderful-marriage-between-us-and-canada-pm-carney-says-canada-will-never-be-for-sale-trump-replies-never-say-never-9042011">'Wonderful marriage between US and Canada': PM Carney says 'Canada will never be for sale', Trump replies, 'never say never'</a></strong></p>
<p>&ldquo;We don&rsquo;t really want cars from Canada,&rdquo; Trump said. &ldquo;We don&rsquo;t want steel from Canada because we&rsquo;re making our own steel.&rdquo;</p>
<p>He also reiterated that Canada needs US good more than the US needs Canadian goods. "We don't do a lot of a business with Canada, they do a lot of business with us," he said.</p>
<p>He said Canada buys the US's "top notch" military equipment. However, Carney didn't respond.</p>
<p><strong>Also read: <a href="https://www.wionews.com/world/very-talented-very-good-trump-calls-canada-pm-carneys-win-greater-than-his-in-surprisingly-warm-white-house-welcome-9041911">'Very talented, very good': Trump calls Canada PM Carney&rsquo;s win &lsquo;greater than his&rsquo; in surprisingly warm White House welcome</a></strong></p>
<p>Trump said it was an "honour" to host the Canadian prime minister following his election victory. Trump says the US will "always' protect Canada, and adds that "it's not a money thing".</p>
<p>It was a long-awaited meeting that came after weeks of strained relations over tariffs and talk of annexation.</p>
<p>Despite the recent tensions, the meeting began on a surprisingly warm note. President Trump told reporters in the Oval Office it was a &ldquo;great honour&rdquo; to host Carney, describing his election win as &ldquo;very big&rdquo;.</p>
<p>&ldquo;I think I was probably the greatest thing that happened to him,&rdquo; Trump said. &ldquo;His party was losing a lot, and he ended up winning. So I really want to congratulate him, probably one of the greatest comebacks in the history of politics, maybe even greater than mine.&rdquo;</p>
<p><strong>Also read: <a href="https://www.wionews.com/world/we-dont-need-anything-from-canada-trump-blasts-canada-ahead-of-first-meeting-with-pm-carney-at-white-house-9041768">&lsquo;We don&rsquo;t need ANYTHING from Canada&rsquo;: Trump blasts Canada ahead of first meeting with PM Carney at White House</a>&nbsp;</strong></p>

When asked if there is anything Carney can say to him that would make him lift the tariffs on Canada. To this, Trump replied, "No, that's just the way it is."  WORLD

US President Donald Trump on Tuesday (May 6) completely scraped off reducing tariffs on Canada, saying that there's nothing Canadian Prime Minister Mark Carney can say to lift US tariffs. During meeting with the Canadian PM, a reporter asked if there is anything Carney can say to him that would make him lift the tariffs on Canada. To this, Trump replied, "No, that's just the way it is." Trump said that "this is a very friendly conversation" with Carney but that the US wants to make its own cars. Also read: 'Wonderful marriage between US and Canada': PM Carney says 'Canada will never be for sale', Trump replies, 'never say never' “We don’t really want cars from Canada,” Trump said. “We don’t want steel from Canada because we’re making our own steel.” He also reiterated that Canada needs US good more than the US needs Canadian goods. "We don't do a lot of a business with Canada, they do a lot of business with us," he said. He said Canada buys the US's "top notch" military equipment. However, Carney didn't respond. Also read: 'Very talented, very good': Trump calls Canada PM Carney’s win ‘greater than his’ in surprisingly warm White House welcome Trump said it was an "honour" to host the Canadian prime minister following his election victory. Trump says the US will "always' protect Canada, and adds that "it's not a money thing". It was a long-awaited meeting that came after weeks of strained relations over tariffs and talk of annexation. Despite the recent tensions, the meeting began on a surprisingly warm note. President Trump told reporters in the Oval Office it was a “great honour” to host Carney, describing his election win as “very big”. “I think I was probably the greatest thing that happened to him,” Trump said. “His party was losing a lot, and he ended up winning. So I really want to congratulate him, probably one of the greatest comebacks in the history of politics, maybe even greater than mine.” Also read: ‘We don’t need ANYTHING from Canada’: Trump blasts Canada ahead of first meeting with PM Carney at White House

'There's nothing PM Carney could say to lift US tariffs': Trump completely dismisses reducing tariffs on Canada

<div data-olk-copy-source="MessageBody">US President Donald Trump has announced plans to impose a 100 per cent tariff on all movies &ldquo;produced in foreign lands&rdquo; on Sunday, arguing that the American film industry is "dying a very fast death" due to the incentives offered by foreign governments, which he claims lure US filmmakers overseas.</div>
<div></div>
<div></div>
<div>In a post on Truth Social, Trump said, &ldquo;Hollywood, and many other areas within the USA, are being devastated. This is a concerted effort by other nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda! Therefore, I am authorising the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100 per cent tariff on any and all movies coming into our country that are produced in foreign lands.&rdquo;</div>
<div></div>
<div></div>
<div>&ldquo;We want movies made in America, again!&rdquo; the post further said.</div>
<div></div>
<div></div>
<div>Replying to his post, the US Commerce Secretary Howard Lutnick said, "We're on it", in a post on social media platform X.</div>
<div></div>
<div></div>
<div>Both Trump and Lutnick have not yet provided any clarity on how these tariffs will be imposed and who it will be targeted at.</div>
<div></div>
<div>
<h2><b data-olk-copy-source="MessageBody">What prompted the move?</b></h2>
<div>The protectionist move by the US President follows China&rsquo;s recent decision to reduce the number of American films allowed in its market. After the US, China is the world&rsquo;s second-largest film market in the world and the move could be a blow to big Hollywood studios like Disney, Warner Bros. and Paramount, which are already struggling to recover from the pandemic.</div>
<div></div>
<div></div>
<div>The China Film Administration, in a statement on April 10, said, &ldquo;The wrong action of the US government to abuse tariffs on China will inevitably further reduce the domestic audience&rsquo;s favourability towards American films,&rdquo;<span>&nbsp;</span><i>The Guardian<span>&nbsp;</span></i>reported.</div>
<div></div>
<div></div>
<div>Hollywood studios spent $11.3 billion on productions in the second quarter of 2024, a 20 per cent drop from the same period in 2022, reflecting a downturn in industry activity. Globally, film and television production levels declined by 20 per cent, while the US saw a sharper 40 per cent decline from pre-strike levels. The Greater Los Angeles Area experienced a 36.4 per cent decrease in shoot days compared to its five-year average, underscoring the widespread impact of production slowdowns across key sectors.</div>
<div></div>
<div></div>
<div>Governments around the world have offered more generous tax credits and cash rebates to lure production, and capture a greater share of the $248 billion that Ampere Analysis predicts will be spent globally in 2025 to produce content.</div>
<div></div>
<div></div>
<div>Worried about the growing troubles of the American film industry, last month, hundreds of Hollywood crew members, producers and actors urged California legislators to increase tax incentives and enact other measures to encourage more film and TV production in and around Los Angeles.</div>
<div></div>
<div></div>
<div>As the trade war between the US and China escalates, the entertainment industry, particularly Hollywood, faces significant challenges. While tariffs and trade restrictions are disrupting global supply chains and affecting multiple sectors, Hollywood&rsquo;s increasing reliance on international locations like the UK for film production may turn out to be a unique challenge for the American film industry. The growing uncertainty could force the industry to reconsider its global strategies, potentially reshaping the landscape of film production, distribution, and international partnerships for years to come.</div>
<div></div>
<div><span>(<em>With inputs from agencies</em>)</span></div>
</div>

Business & Economy: Intensifying his protectionist policies, Trump plans to impose a 100% tariff on all movies produced outside the US. The move could impact Hollywood

US President Donald Trump has announced plans to impose a 100 per cent tariff on all movies “produced in foreign lands” on Sunday, arguing that the American film industry is "dying a very fast death" due to the incentives offered by foreign governments, which he claims lure US filmmakers overseas. In a post on Truth Social, Trump said, “Hollywood, and many other areas within the USA, are being devastated. This is a concerted effort by other nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda! Therefore, I am authorising the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100 per cent tariff on any and all movies coming into our country that are produced in foreign lands.” “We want movies made in America, again!” the post further said. Replying to his post, the US Commerce Secretary Howard Lutnick said, "We're on it", in a post on social media platform X. Both Trump and Lutnick have not yet provided any clarity on how these tariffs will be imposed and who it will be targeted at. What prompted the move? The protectionist move by the US President follows China’s recent decision to reduce the number of American films allowed in its market. After the US, China is the world’s second-largest film market in the world and the move could be a blow to big Hollywood studios like Disney, Warner Bros. and Paramount, which are already struggling to recover from the pandemic. The China Film Administration, in a statement on April 10, said, “The wrong action of the US government to abuse tariffs on China will inevitably further reduce the domestic audience’s favourability towards American films,” The Guardian reported. Hollywood studios spent $11.3 billion on productions in the second quarter of 2024, a 20 per cent drop from the same period in 2022, reflecting a downturn in industry activity. Globally, film and television production levels declined by 20 per cent, while the US saw a sharper 40 per cent decline from pre-strike levels. The Greater Los Angeles Area experienced a 36.4 per cent decrease in shoot days compared to its five-year average, underscoring the widespread impact of production slowdowns across key sectors. Governments around the world have offered more generous tax credits and cash rebates to lure production, and capture a greater share of the $248 billion that Ampere Analysis predicts will be spent globally in 2025 to produce content. Worried about the growing troubles of the American film industry, last month, hundreds of Hollywood crew members, producers and actors urged California legislators to increase tax incentives and enact other measures to encourage more film and TV production in and around Los Angeles. As the trade war between the US and China escalates, the entertainment industry, particularly Hollywood, faces significant challenges. While tariffs and trade restrictions are disrupting global supply chains and affecting multiple sectors, Hollywood’s increasing reliance on international locations like the UK for film production may turn out to be a unique challenge for the American film industry. The growing uncertainty could force the industry to reconsider its global strategies, potentially reshaping the landscape of film production, distribution, and international partnerships for years to come. (With inputs from agencies)

Donald Trump to impose tariffs on film production, is it a bad news for Hollywood?

trade-war

Trade War, News on Trade War, stories on Trade War, articles on Trade War, Trade War stories at Wion, Trade War news, Trade War latest news

trade war

UAE suspends all trade, financial dealings with Iran

US-China Trade War Escalates | Beijing Targets American Entities and Drone Exports

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

Are Trump's economic weapons failing?

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

IEA warns: China's export controls put $6.5 trillion at risk | World Business Watch

IEA warns: China's export controls put $6.5 trillion at risk | World Business Watch

Years of tensions: The complete timeline of the US-China trade conflict

China Builds Trade Ties as US Raises Barriers

US Imports Rose 5% in November Driven by Demand

US-China Trade War: Trump Risks Imploding US China Trade Truce with Iran Tariff

US Trade Gap Shrinks to Smallest Since 2009

U.S. Targets Russia’s Oil With Sanctions | WORLD BUSINESS WATCH | WION

US-Russia Tensions: US Imposes Sanctions on Russian Oil Firms Amid Rising Tensions | WORLD DNA

US-China Trade: Amid Trade War With US, China’s Trade With SCO Partners Reaches Record High

Trump's tariff twist: Docs show boost for big allies, including Musk's Starlink

Which countries have the highest tariffs in 2025?

What are tariffs and why are they called a financial weapon?

Trump tariffs in effect NOW: US president slams 'radical left court'

Trump is winning this trade war - How US raked in $50bn as world backed down

Donald Trump makes big 'trade deal' announcement for India amid tariff worries

China cuts key rates, boosts liquidity ahead of US trade talk

'There's nothing PM Carney could say to lift US tariffs': Trump completely dismisses reducing tariffs on Canada

Donald Trump to impose tariffs on film production, is it a bad news for Hollywood?