European Union leaders gathered in Brussels on Thursday to discuss fresh trade proposals from the United States, with just two weeks left before a tariff truce expires and the spectre of 50 per cent US import duties returns to threaten transatlantic commerce.&nbsp;As per Reuters, European Commission President Ursula von der Leyen presented the “outline” of the new US offer to heads of state and government at the summit, though officials did not reveal specific details. One EU diplomat described the proposal as a “two-pager, principle agreement” and said Washington was keen to avoid negotiating sector-by-sector commitments, as quoted by Reuters.&nbsp; “We only have two weeks left – so we should go for something like that, like Brazil and Britain,” the diplomat added, alluding to simpler trade frameworks struck by other countries with the US. But divisions across the EU remain stark, with France pushing for a tougher line while Italy leans towards compromise.<h2>Internal EU divisions complicate talks</h2>The split within Europe’s largest economies has become increasingly visible. German Chancellor Friedrich Merz earlier this week urged the bloc to move quickly and prioritise a “faster” and “simpler” trade deal with Washington. In contrast, French officials argued that Brussels should hold out for stronger terms, particularly on opening up US services markets, as per Reuters. The stakes are high. President Donald Trump has threatened to raise tariffs on EU goods to 50 per cent if a new agreement cannot be reached before the July 9 deadline, reigniting fears of a transatlantic trade war at a time when European economies are already battling high inflation and sluggish growth.&nbsp;According to Reuters, the European Commission is trying to find common ground among the 27 member states but achieving a unified position before the deadline remains a significant diplomatic challenge.<h2>Tariffs overshadow broader summit agenda</h2>The Brussels summit had originally been intended to cover a wider range of pressing issues, from Europe’s security posture to its fraught relationship with Russia but trade tensions with Washington quickly dominated proceedings.&nbsp;The meeting followed a tense NATO summit earlier in the week, where alliance members agreed to raise defence spending significantly. However, that commitment exposed rifts within Europe, with some states privately admitting they cannot afford the new targets. Spain has reportedly demanded an explicit opt-out, highlighting the strains on national budgets amid competing priorities.<h2>Ukraine pressures Europe for stronger stance</h2>Meanwhile, the war in Ukraine cast a long shadow over the summit’s agenda. Ukrainian President Volodymyr Zelenskiy addressed EU leaders directly, calling for a fresh round of sanctions on Russia that would target its oil exports and banking sector. He also demanded a clear, unequivocal message of support for Ukraine’s future EU membership.&nbsp;“What’s needed now is a clear political message – that Ukraine is firmly on the European path, and that Europe stands by its promises,” Zelenskiy told the gathering, as quoted by Reuters. “Any delay by Europe at this point could create a global precedent – a reason to doubt Europe’s words and commitments.” Yet even on this front, divisions persist. Hungary remains firmly opposed to offering Ukraine a clear accession path or adopting new sanctions on Russian energy trade.<h2>Uncertain path ahead</h2>As the Brussels talks adjourned without a final decision on the US trade proposal, time is rapidly running out for Europe to strike a deal that would avert punishing new tariffs. European officials say they will continue negotiations in the coming days, but the challenge of reconciling internal divisions while bargaining with the Trump administration’s hardline stance remains daunting.&nbsp;With transatlantic relations at risk of fresh trade turmoil, and Ukraine’s war effort demanding ever more support, EU leaders face a difficult balancing act as they seek to project unity and resolve on the global stage.&nbsp;(With inputs from the agencies)&nbsp;

European Commission President Ursula von der Leyen presented a basic outline of the US offer, which seeks a more straightforward agreement rather than detailed sector by sector negotiations. 

European Union leaders gathered in Brussels on Thursday to discuss fresh trade proposals from the United States, with just two weeks left before a tariff truce expires and the spectre of 50 per cent US import duties returns to threaten transatlantic commerce. As per Reuters, European Commission President Ursula von der Leyen presented the “outline” of the new US offer to heads of state and government at the summit, though officials did not reveal specific details. One EU diplomat described the proposal as a “two-pager, principle agreement” and said Washington was keen to avoid negotiating sector-by-sector commitments, as quoted by Reuters. “We only have two weeks left – so we should go for something like that, like Brazil and Britain,” the diplomat added, alluding to simpler trade frameworks struck by other countries with the US. But divisions across the EU remain stark, with France pushing for a tougher line while Italy leans towards compromise. Internal EU divisions complicate talks The split within Europe’s largest economies has become increasingly visible. German Chancellor Friedrich Merz earlier this week urged the bloc to move quickly and prioritise a “faster” and “simpler” trade deal with Washington. In contrast, French officials argued that Brussels should hold out for stronger terms, particularly on opening up US services markets, as per Reuters. The stakes are high. President Donald Trump has threatened to raise tariffs on EU goods to 50 per cent if a new agreement cannot be reached before the July 9 deadline, reigniting fears of a transatlantic trade war at a time when European economies are already battling high inflation and sluggish growth. According to Reuters, the European Commission is trying to find common ground among the 27 member states but achieving a unified position before the deadline remains a significant diplomatic challenge. Tariffs overshadow broader summit agenda The Brussels summit had originally been intended to cover a wider range of pressing issues, from Europe’s security posture to its fraught relationship with Russia but trade tensions with Washington quickly dominated proceedings. The meeting followed a tense NATO summit earlier in the week, where alliance members agreed to raise defence spending significantly. However, that commitment exposed rifts within Europe, with some states privately admitting they cannot afford the new targets. Spain has reportedly demanded an explicit opt-out, highlighting the strains on national budgets amid competing priorities. Ukraine pressures Europe for stronger stance Meanwhile, the war in Ukraine cast a long shadow over the summit’s agenda. Ukrainian President Volodymyr Zelenskiy addressed EU leaders directly, calling for a fresh round of sanctions on Russia that would target its oil exports and banking sector. He also demanded a clear, unequivocal message of support for Ukraine’s future EU membership. “What’s needed now is a clear political message – that Ukraine is firmly on the European path, and that Europe stands by its promises,” Zelenskiy told the gathering, as quoted by Reuters. “Any delay by Europe at this point could create a global precedent – a reason to doubt Europe’s words and commitments.” Yet even on this front, divisions persist. Hungary remains firmly opposed to offering Ukraine a clear accession path or adopting new sanctions on Russian energy trade. Uncertain path ahead As the Brussels talks adjourned without a final decision on the US trade proposal, time is rapidly running out for Europe to strike a deal that would avert punishing new tariffs. European officials say they will continue negotiations in the coming days, but the challenge of reconciling internal divisions while bargaining with the Trump administration’s hardline stance remains daunting. With transatlantic relations at risk of fresh trade turmoil, and Ukraine’s war effort demanding ever more support, EU leaders face a difficult balancing act as they seek to project unity and resolve on the global stage. (With inputs from the agencies)

EU leaders met in Brussels to discuss US trade proposals as a tariff truce approaches its end, risking 50% US import duties.

EU leaders weigh US trade offer as tariff deadline looms

A fragile US-China trade truce appears to be back on track, with President Donald Trump declaring a new deal “done” after months of bitter tariff escalation and critical export curbs. The breakthrough, which includes China’s agreement to resume rare earth mineral shipments to the United States, offers a tentative respite for global markets rattled by the world’s biggest economic rivalry.&nbsp;Speaking at Washington’s Kennedy Center, Trump announced the agreement, saying: “We made a great deal with China. We’re very happy with it. We have everything we need, and we’re going to do very well with it. And hopefully they are too,” as quoted by Reuters. The deal, finalised after two days of intense negotiations in London, still requires formal approval from Chinese President Xi Jinping. Yet it marks the clearest sign yet of a possible easing of a trade war that has snarled supply chains, stoked inflation fears, and weighed on growth prospects worldwide.<h2>Rare earths at the heart of the deal</h2>One of the most significant elements of the agreement is Beijing’s commitment to remove export restrictions on rare earth minerals and magnetic components essential for manufacturing electric vehicles, smartphones, defence systems, and semiconductors.&nbsp;China’s curbs on these critical minerals—imposed in February under new export controls citing national security concerns—had threatened to choke US defence and tech supply chains. The United States accused China of weaponising its dominant position, as the country holds roughly 36 per cent of global rare earth reserves and nearly 70 per cent of refining capacity. As per Reuters, the White House says the understanding is designed to implement a Geneva framework agreed in May, which committed China to removing non-tariff countermeasures imposed on the US since April 2. However, negotiations had faltered over these mineral export curbs, prompting Washington to retaliate with its own controls on semiconductor design software and other high-end technologies.&nbsp;US Commerce Secretary Howard Lutnick told Bloomberg that China had agreed to “deliver rare earths to us” and in return, the US would “take down our countermeasures.” While Lutnick described the final rare earths deal as “balanced,” he did not detail specific mineral types or shipment volumes.<h2>Tariff freeze at 55 per cent</h2>Another headline element of the new agreement is the fixing of US tariffs on Chinese imports at 55 per cent, a composite rate built from layers of duties imposed over Trump’s second term. According to a senior White House official, this figure includes 25 per cent legacy tariffs from Trump’s first term, 20 per cent in response to alleged fentanyl trade routes through China, and a 10 per cent blanket tariff announced in February 2025. In return, China is expected to maintain a 10 per cent reciprocal tariff on US goods. Trump confirmed the deal on his social media platform Truth Social, stating: “Full magnets, and any necessary rare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities.”&nbsp;This exchange on student visas reflects a concession on another sticking point in bilateral ties, with Trump previously threatening tighter controls on Chinese nationals studying sensitive subjects in US institutions.<h2>Timeline of a bruising trade war</h2>The latest deal follows a turbulent year of tit-for-tat trade measures that reignited tensions between Washington and Beijing.&nbsp;In February 2025, Trump issued an executive order imposing a blanket 10 per cent tariff on all Chinese imports and scrapping the de minimis exemption for small parcels, arguing that e-commerce routes were being used to funnel fentanyl into the US. Beijing retaliated with tariffs on American coal, LNG, crude oil and vehicle parts, while also introducing new export controls on rare earths. By March, the conflict had escalated further, with the US hiking tariffs to 20 per cent, then to 54 per cent under Trump’s so-called “Liberation Day” order. China matched these moves, slapping tariffs as high as 125 per cent on some US products and filing a formal complaint at the World Trade Organization.&nbsp;A fragile ceasefire emerged in May after talks in Geneva produced a 90-day moratorium on new trade measures. But tensions soon resurfaced when the US accused China of failing to deliver on commitments to resume rare earth shipments. A turning point came in early June with a 90-minute phone call between Trump and Xi, which paved the way for high-level negotiations in London from June 9–10. Officials say these marathon sessions “put meat on the bones” of the Geneva framework, culminating in Trump’s declaration on June 11 that the deal was “done.”<h2>A fragile peace?</h2>Despite the White House’s upbeat messaging, analysts caution that the agreement remains short on detail and vulnerable to collapse. “It’s a done deal, according to President Trump, but we haven’t seen any details, which is why I think the market is not reacting to it yet,” Oliver Pursche, a senior adviser at Wealthspire Advisors, told Reuters. The World Bank has already cut its 2025 global growth forecast to 2.3 per cent, citing tariff escalation and policy uncertainty. Even with this new framework in place, there is deep scepticism over whether both sides can avoid another round of brinkmanship.&nbsp;For now, the deal offers a sliver of hope that the world’s two largest economies can avoid another damaging escalation. But with implementation mechanisms still pending, and a long history of breakdowns in trust, the road to a lasting trade peace remains highly uncertain.&nbsp;(With inputs from the agencies) &nbsp;

The deal encompasses China promise to restart shipments of rare earth minerals to the US, essential for numerous sectors. Trump highlighted the advantages of the agreement, but it still requires official authorization from President Xi Jinping. 

A fragile US-China trade truce appears to be back on track, with President Donald Trump declaring a new deal “done” after months of bitter tariff escalation and critical export curbs. The breakthrough, which includes China’s agreement to resume rare earth mineral shipments to the United States, offers a tentative respite for global markets rattled by the world’s biggest economic rivalry. Speaking at Washington’s Kennedy Center, Trump announced the agreement, saying: “We made a great deal with China. We’re very happy with it. We have everything we need, and we’re going to do very well with it. And hopefully they are too,” as quoted by Reuters. The deal, finalised after two days of intense negotiations in London, still requires formal approval from Chinese President Xi Jinping. Yet it marks the clearest sign yet of a possible easing of a trade war that has snarled supply chains, stoked inflation fears, and weighed on growth prospects worldwide. Rare earths at the heart of the deal One of the most significant elements of the agreement is Beijing’s commitment to remove export restrictions on rare earth minerals and magnetic components essential for manufacturing electric vehicles, smartphones, defence systems, and semiconductors. China’s curbs on these critical minerals—imposed in February under new export controls citing national security concerns—had threatened to choke US defence and tech supply chains. The United States accused China of weaponising its dominant position, as the country holds roughly 36 per cent of global rare earth reserves and nearly 70 per cent of refining capacity. As per Reuters, the White House says the understanding is designed to implement a Geneva framework agreed in May, which committed China to removing non-tariff countermeasures imposed on the US since April 2. However, negotiations had faltered over these mineral export curbs, prompting Washington to retaliate with its own controls on semiconductor design software and other high-end technologies. US Commerce Secretary Howard Lutnick told Bloomberg that China had agreed to “deliver rare earths to us” and in return, the US would “take down our countermeasures.” While Lutnick described the final rare earths deal as “balanced,” he did not detail specific mineral types or shipment volumes. Tariff freeze at 55 per cent Another headline element of the new agreement is the fixing of US tariffs on Chinese imports at 55 per cent, a composite rate built from layers of duties imposed over Trump’s second term. According to a senior White House official, this figure includes 25 per cent legacy tariffs from Trump’s first term, 20 per cent in response to alleged fentanyl trade routes through China, and a 10 per cent blanket tariff announced in February 2025. In return, China is expected to maintain a 10 per cent reciprocal tariff on US goods. Trump confirmed the deal on his social media platform Truth Social, stating: “Full magnets, and any necessary rare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities.” This exchange on student visas reflects a concession on another sticking point in bilateral ties, with Trump previously threatening tighter controls on Chinese nationals studying sensitive subjects in US institutions. Timeline of a bruising trade war The latest deal follows a turbulent year of tit-for-tat trade measures that reignited tensions between Washington and Beijing. In February 2025, Trump issued an executive order imposing a blanket 10 per cent tariff on all Chinese imports and scrapping the de minimis exemption for small parcels, arguing that e-commerce routes were being used to funnel fentanyl into the US. Beijing retaliated with tariffs on American coal, LNG, crude oil and vehicle parts, while also introducing new export controls on rare earths. By March, the conflict had escalated further, with the US hiking tariffs to 20 per cent, then to 54 per cent under Trump’s so-called “Liberation Day” order. China matched these moves, slapping tariffs as high as 125 per cent on some US products and filing a formal complaint at the World Trade Organization. A fragile ceasefire emerged in May after talks in Geneva produced a 90-day moratorium on new trade measures. But tensions soon resurfaced when the US accused China of failing to deliver on commitments to resume rare earth shipments. A turning point came in early June with a 90-minute phone call between Trump and Xi, which paved the way for high-level negotiations in London from June 9–10. Officials say these marathon sessions “put meat on the bones” of the Geneva framework, culminating in Trump’s declaration on June 11 that the deal was “done.” A fragile peace? Despite the White House’s upbeat messaging, analysts caution that the agreement remains short on detail and vulnerable to collapse. “It’s a done deal, according to President Trump, but we haven’t seen any details, which is why I think the market is not reacting to it yet,” Oliver Pursche, a senior adviser at Wealthspire Advisors, told Reuters. The World Bank has already cut its 2025 global growth forecast to 2.3 per cent, citing tariff escalation and policy uncertainty. Even with this new framework in place, there is deep scepticism over whether both sides can avoid another round of brinkmanship. For now, the deal offers a sliver of hope that the world’s two largest economies can avoid another damaging escalation. But with implementation mechanisms still pending, and a long history of breakdowns in trust, the road to a lasting trade peace remains highly uncertain. (With inputs from the agencies)

A trade agreement between the US and China seems to be reinstated, with President Trump revealing a deal following months of rising tariffs and export limitations.

US-China trade truce: Trump says deal is ‘done’ as rare earth exports set to resume

Pakistan and the United States are preparing to finalise a crucial agreement on reciprocal tariffs by next week, according to a statement released by Pakistan’s Ministry of Finance on Wednesday. The move comes ahead of the expiry of a 90-day suspension of new US tariffs that could hit Pakistani exports with duties of up to 29 per cent.&nbsp;The agreement follows a virtual meeting between Pakistan’s Finance Minister Muhammad Aurangzeb and US Commerce Secretary Howard Lutnick. According to the finance ministry, both sides agreed on “meaningful engagement” to strengthen bilateral trade and investment, and to build a broader economic partnership.<h2>US targets Pakistan’s $3 billion trade surplus</h2>The negotiations were triggered after the US announced tariffs last month on countries running significant trade surpluses with Washington. Pakistan, which posted a $3 billion trade surplus with the US, now faces a potential 29 per cent tariff on its outbound shipments.&nbsp;As per APP, the US initially delayed the tariffs by 90 days to give space for diplomatic negotiations. Islamabad responded by dispatching a high-level trade delegation to Washington in May. During the visit, Pakistan proposed a zero-tariff bilateral trade agreement and offered to boost imports of US goods such as cotton and edible oils, which are in domestic short supply.<h2>New framework for strategic economic cooperation</h2>Beyond tariffs, both sides are also discussing a long-term plan to deepen trade and investment ties. According to Pakistan’s finance ministry, the discussions will lead to a “strategic and investment-based partnership,” with technical-level talks expected to wrap up next week.&nbsp;The talks come at a time when Pakistan is looking to attract greater foreign investment amid economic reforms. Earlier this week, the two countries co-hosted a webinar promoting investment in Pakistan’s mineral sector, including the $7 billion Reko Diq copper-gold project, as reported by Reuters.US investors and government officials reportedly discussed public-private partnerships and regulatory changes to boost Pakistan’s mining sector.<h2>Trade diplomacy follows regional thaw</h2>The broader context is also shifting. US President Donald Trump, who recently brokered a ceasefire between Pakistan and India, has argued that trade diplomacy has helped avoid a deeper conflict between the two neighbours. Trump has positioned trade as a key instrument of foreign policy during his second term.&nbsp;For Pakistan, preserving access to the US market is essential. The US remains one of Pakistan’s largest trading partners, particularly for textiles, garments, and leather goods.With the clock ticking on the 90-day suspension, the stakes are high. A failure to secure a deal could expose Pakistan’s exports to costly US tariffs at a time when the country is already grappling with a depreciating rupee and industrial stagnation.&nbsp;&nbsp;(With inputs from the agencies) &nbsp;

Facing up to 29% US tariffs on exports, Pakistan pushes for zero-duty trade pact and deeper economic ties amid rising pressure on its fragile economy.

Pakistan and the United States are preparing to finalise a crucial agreement on reciprocal tariffs by next week, according to a statement released by Pakistan’s Ministry of Finance on Wednesday. The move comes ahead of the expiry of a 90-day suspension of new US tariffs that could hit Pakistani exports with duties of up to 29 per cent. The agreement follows a virtual meeting between Pakistan’s Finance Minister Muhammad Aurangzeb and US Commerce Secretary Howard Lutnick. According to the finance ministry, both sides agreed on “meaningful engagement” to strengthen bilateral trade and investment, and to build a broader economic partnership. US targets Pakistan’s $3 billion trade surplus The negotiations were triggered after the US announced tariffs last month on countries running significant trade surpluses with Washington. Pakistan, which posted a $3 billion trade surplus with the US, now faces a potential 29 per cent tariff on its outbound shipments. As per APP, the US initially delayed the tariffs by 90 days to give space for diplomatic negotiations. Islamabad responded by dispatching a high-level trade delegation to Washington in May. During the visit, Pakistan proposed a zero-tariff bilateral trade agreement and offered to boost imports of US goods such as cotton and edible oils, which are in domestic short supply. New framework for strategic economic cooperation Beyond tariffs, both sides are also discussing a long-term plan to deepen trade and investment ties. According to Pakistan’s finance ministry, the discussions will lead to a “strategic and investment-based partnership,” with technical-level talks expected to wrap up next week. The talks come at a time when Pakistan is looking to attract greater foreign investment amid economic reforms. Earlier this week, the two countries co-hosted a webinar promoting investment in Pakistan’s mineral sector, including the $7 billion Reko Diq copper-gold project, as reported by Reuters. US investors and government officials reportedly discussed public-private partnerships and regulatory changes to boost Pakistan’s mining sector. Trade diplomacy follows regional thaw The broader context is also shifting. US President Donald Trump, who recently brokered a ceasefire between Pakistan and India, has argued that trade diplomacy has helped avoid a deeper conflict between the two neighbours. Trump has positioned trade as a key instrument of foreign policy during his second term. For Pakistan, preserving access to the US market is essential. The US remains one of Pakistan’s largest trading partners, particularly for textiles, garments, and leather goods. With the clock ticking on the 90-day suspension, the stakes are high. A failure to secure a deal could expose Pakistan’s exports to costly US tariffs at a time when the country is already grappling with a depreciating rupee and industrial stagnation. (With inputs from the agencies)

Pakistan, US race to finalise reciprocal tariff deal before looming deadline threatens key exports.

Pakistan races to finalise tariff deal with US as 90-day suspension deadline nears expiry

The UK government on Thursday introduced a new&nbsp;trade strategy designed to strengthen British exports while tightening safeguards against the threat of cheap foreign imports. The move comes amid rising global uncertainty and renewed protectionism triggered by the US tariff wave under President Donald Trump.<h2>What is Britain's new trade plan?&nbsp;</h2>Unveiled at the British Chambers of Commerce (BCC) conference in London, the strategy outlines a dual approach: expanding export support for UK firms while reinforcing trade defences to ensure domestic industries remain competitive.&nbsp;Business Secretary Jonathan Reynolds said the initiative is aimed at “ensuring British businesses are protected from harm”, as quoted by Reuters. According to the strategy, the UK will increase government-backed financing for exporters and provide assistance in navigating complex trade regulations—especially for small and medium-sized enterprises (SMEs).<h2>Concerns over redirected exports amid US tariffs</h2>The timing of the announcement follows rising concerns that goods originally intended for the US, particularly steel and electric vehicles, may be diverted to the UK, after President Trump’s new tariffs made American markets costlier for foreign producers. Reuters reports that British manufacturers fear a potential influx of underpriced imports, particularly from China, as global supply chains reroute. Sectors such as automotive and steel have called for urgent measures to prevent market distortion.&nbsp;Unlike the European Union, the UK has not imposed high tariffs on Chinese-made electric vehicles, and its existing steel import safeguards are due to expire in 2026.<h2>Trade defence under review</h2>Officials have signalled an upcoming review of trade remedy tools managed by the Trade Remedies Authority (TRA). While the UK’s current mechanisms allow for countermeasures against dumping or subsidies, industry groups say enforcement has been slow and limited in scope.&nbsp;According to Financial Times, British steelmakers are urging the government to extend or replace current safeguards and consider treating certain sectors, such as domestic steel production, as strategic.<h2>Focus on services, India trade deal</h2>The strategy also highlights a renewed focus on expanding UK services exports, which already account for over £500 billion annually, as per Financial Times. Officials pointed to the recently concluded UK–India free trade agreement as a key success. The deal is expected to increase bilateral trade by over £25 billion per year by 2040.&nbsp;The government also referenced improvements in post-Brexit trading terms with the European Union and a new tariff agreement with the US as signs of diplomatic progress.<h2>Closing the tax-free loophole on low-value imports</h2>The UK Treasury is reviewing the “de minimis” rule, which currently allows goods worth under £135 to enter the UK without import taxes. Retailers argue that this loophole is being exploited by foreign e-commerce firms, including Shein and Temu, to undercut local sellers.&nbsp;As per The Guardian, Andrew Opie of the British Retail Consortium called for “swift action” to prevent misuse of the rule, originally intended for consumers but now increasingly leveraged for commercial advantage.<h2>What’s next?</h2>The government’s trade policy update reflects a shift toward greater responsiveness in a changing global environment. With protectionist measures spreading across major economies and geopolitical risks reshaping supply chains, UK officials say the new plan aims to strike a balance, supporting exporters while defending vulnerable sectors.&nbsp;The coming months will be key as the UK reviews steel safeguards, monitors redirected trade flows, and implements changes to low-value import&nbsp;rules.&nbsp;&nbsp;(With inputs from the agencies) &nbsp;

Amid Trump-led US tariff surge, Britain tightens trade defences and eyes redirected Chinese exports while expanding support for SMEs and services.

The UK government on Thursday introduced a new trade strategy designed to strengthen British exports while tightening safeguards against the threat of cheap foreign imports. The move comes amid rising global uncertainty and renewed protectionism triggered by the US tariff wave under President Donald Trump. What is Britain's new trade plan? Unveiled at the British Chambers of Commerce (BCC) conference in London, the strategy outlines a dual approach: expanding export support for UK firms while reinforcing trade defences to ensure domestic industries remain competitive. Business Secretary Jonathan Reynolds said the initiative is aimed at “ensuring British businesses are protected from harm”, as quoted by Reuters. According to the strategy, the UK will increase government-backed financing for exporters and provide assistance in navigating complex trade regulations—especially for small and medium-sized enterprises (SMEs). Concerns over redirected exports amid US tariffs The timing of the announcement follows rising concerns that goods originally intended for the US, particularly steel and electric vehicles, may be diverted to the UK, after President Trump’s new tariffs made American markets costlier for foreign producers. Reuters reports that British manufacturers fear a potential influx of underpriced imports, particularly from China, as global supply chains reroute. Sectors such as automotive and steel have called for urgent measures to prevent market distortion. Unlike the European Union, the UK has not imposed high tariffs on Chinese-made electric vehicles, and its existing steel import safeguards are due to expire in 2026. Trade defence under review Officials have signalled an upcoming review of trade remedy tools managed by the Trade Remedies Authority (TRA). While the UK’s current mechanisms allow for countermeasures against dumping or subsidies, industry groups say enforcement has been slow and limited in scope. According to Financial Times, British steelmakers are urging the government to extend or replace current safeguards and consider treating certain sectors, such as domestic steel production, as strategic. Focus on services, India trade deal The strategy also highlights a renewed focus on expanding UK services exports, which already account for over £500 billion annually, as per Financial Times. Officials pointed to the recently concluded UK–India free trade agreement as a key success. The deal is expected to increase bilateral trade by over £25 billion per year by 2040. The government also referenced improvements in post-Brexit trading terms with the European Union and a new tariff agreement with the US as signs of diplomatic progress. Closing the tax-free loophole on low-value imports The UK Treasury is reviewing the “de minimis” rule, which currently allows goods worth under £135 to enter the UK without import taxes. Retailers argue that this loophole is being exploited by foreign e-commerce firms, including Shein and Temu, to undercut local sellers. As per The Guardian, Andrew Opie of the British Retail Consortium called for “swift action” to prevent misuse of the rule, originally intended for consumers but now increasingly leveraged for commercial advantage. What’s next? The government’s trade policy update reflects a shift toward greater responsiveness in a changing global environment. With protectionist measures spreading across major economies and geopolitical risks reshaping supply chains, UK officials say the new plan aims to strike a balance, supporting exporters while defending vulnerable sectors. The coming months will be key as the UK reviews steel safeguards, monitors redirected trade flows, and implements changes to low-value import rules. (With inputs from the agencies)

UK unveils new trade strategy to boost exports and shield domestic industries from cheap foreign imports.

UK unveils trade plan to support exporters, guard against cheap imports

The US dollar slumped to its lowest level in over three years against the euro on Thursday, as financial markets reacted nervously to growing concerns over the future independence of the US Federal Reserve. The decline followed reports that President Donald Trump is considering replacing Fed Chair Jerome Powell ahead of the November elections, a move that analysts say could damage the credibility of US monetary policy.<h2>Dollar loses ground amid political interference fears</h2>The greenback slipped across major currencies, with the euro climbing 0.2 per cent to $1.1687, its strongest since October 2021, as per Reuters. Sterling also gained 0.2 per cent to $1.3690, the highest level since January 2022. The dollar index, which tracks the currency against six peers, dropped to 97.491, its lowest reading since early 2022.&nbsp;Market unease intensified after a Wall Street Journal report claimed that Trump was toying with the idea of announcing Powell’s replacement by September or October. Such a move, if seen as politically motivated, could undermine the Federal Reserve’s independence and complicate the central bank’s cautious approach to interest rate management.&nbsp;“Markets are likely to bristle at any early move to name Powell’s successor, particularly if the decision appears politically motivated,” said Kieran Williams, head of Asia FX at InTouch Capital Markets, as quoted by Reuters. “It could recalibrate rate expectations and trigger a reassessment of dollar positioning.”<h2>Rate cut bets increase as Fed–White House tensions escalate</h2>The possibility of political interference has fed into expectations of a more dovish stance from the Fed. Markets are now pricing in a 25 per cent chance of a rate cut at the central bank’s July meeting, up from just 12 per cent a week earlier, according to Reuters. Overall, traders are factoring in 64 basis points of rate cuts by the end of 2025, up from 46 basis points priced in last Friday.&nbsp;Trump’s criticism of Powell escalated on Wednesday, when he called the Fed Chair “terrible” for not slashing rates more aggressively. Meanwhile, Powell, testifying before the Senate defended the Fed’s cautious stance, highlighting risks to inflation from the President’s evolving tariff policies. The dollar weakened 0.2 per cent against the yen to 144.89 and fell to its lowest against the Swiss franc since 2011 at 0.8033. The franc also hit a record high against the yen, trading near 180.55, as per Reuters.<h2>Tariffs and recession fears weigh on dollar</h2>Trump’s shifting tariff policy is also driving renewed concern. With the President’s July 9 deadline for trade deals approaching, banks and investors are bracing for further disruptions. JPMorgan, in a note published on Wednesday, warned that higher tariffs could slow US economic growth and lift inflation, projecting a 40 per cent chance of a recession.&nbsp;“The risk of additional negative shocks is elevated,” JPMorgan analysts wrote, as quoted by Reuters. “We expect US tariff rates to move higher… and our baseline scenario incorporates the end of a phase of US exceptionalism.”&nbsp;The “end of US exceptionalism," a term referring to America’s post-2008 dominance in global growth and monetary stability has become a central narrative in the dollar’s decline. With investor confidence shaken by domestic political uncertainty and tariff-induced inflationary risks, the greenback’s appeal as the world’s safe haven currency is visibly eroding.<h2>Euro emerges stronger as Europe invests in stability</h2>The euro has emerged as one of the biggest beneficiaries of the dollar’s slide. Investor optimism is growing around Europe’s economic resilience, as governments ramp up investment in defence, infrastructure, and strategic autonomy.&nbsp;The resulting capital flows into European markets are further strengthening the euro’s appeal as a reserve asset, challenging the dollar’s long-held dominance. With the Fed’s next meeting looming, and US politics in flux, global investors are left weighing whether the era of American monetary stability is entering uncharted territory.&nbsp;(With inputs from the agencies) &nbsp;

Markets jitter as Trump mulls replacing Fed Chair Powell; dollar weakens amid rising recession fears and fading US policy credibility.

The US dollar slumped to its lowest level in over three years against the euro on Thursday, as financial markets reacted nervously to growing concerns over the future independence of the US Federal Reserve. The decline followed reports that President Donald Trump is considering replacing Fed Chair Jerome Powell ahead of the November elections, a move that analysts say could damage the credibility of US monetary policy. Dollar loses ground amid political interference fears The greenback slipped across major currencies, with the euro climbing 0.2 per cent to $1.1687, its strongest since October 2021, as per Reuters. Sterling also gained 0.2 per cent to $1.3690, the highest level since January 2022. The dollar index, which tracks the currency against six peers, dropped to 97.491, its lowest reading since early 2022. Market unease intensified after a Wall Street Journal report claimed that Trump was toying with the idea of announcing Powell’s replacement by September or October. Such a move, if seen as politically motivated, could undermine the Federal Reserve’s independence and complicate the central bank’s cautious approach to interest rate management. “Markets are likely to bristle at any early move to name Powell’s successor, particularly if the decision appears politically motivated,” said Kieran Williams, head of Asia FX at InTouch Capital Markets, as quoted by Reuters. “It could recalibrate rate expectations and trigger a reassessment of dollar positioning.” Rate cut bets increase as Fed–White House tensions escalate The possibility of political interference has fed into expectations of a more dovish stance from the Fed. Markets are now pricing in a 25 per cent chance of a rate cut at the central bank’s July meeting, up from just 12 per cent a week earlier, according to Reuters. Overall, traders are factoring in 64 basis points of rate cuts by the end of 2025, up from 46 basis points priced in last Friday. Trump’s criticism of Powell escalated on Wednesday, when he called the Fed Chair “terrible” for not slashing rates more aggressively. Meanwhile, Powell, testifying before the Senate defended the Fed’s cautious stance, highlighting risks to inflation from the President’s evolving tariff policies. The dollar weakened 0.2 per cent against the yen to 144.89 and fell to its lowest against the Swiss franc since 2011 at 0.8033. The franc also hit a record high against the yen, trading near 180.55, as per Reuters. Tariffs and recession fears weigh on dollar Trump’s shifting tariff policy is also driving renewed concern. With the President’s July 9 deadline for trade deals approaching, banks and investors are bracing for further disruptions. JPMorgan, in a note published on Wednesday, warned that higher tariffs could slow US economic growth and lift inflation, projecting a 40 per cent chance of a recession. “The risk of additional negative shocks is elevated,” JPMorgan analysts wrote, as quoted by Reuters. “We expect US tariff rates to move higher… and our baseline scenario incorporates the end of a phase of US exceptionalism.” The “end of US exceptionalism," a term referring to America’s post-2008 dominance in global growth and monetary stability has become a central narrative in the dollar’s decline. With investor confidence shaken by domestic political uncertainty and tariff-induced inflationary risks, the greenback’s appeal as the world’s safe haven currency is visibly eroding. Euro emerges stronger as Europe invests in stability The euro has emerged as one of the biggest beneficiaries of the dollar’s slide. Investor optimism is growing around Europe’s economic resilience, as governments ramp up investment in defence, infrastructure, and strategic autonomy. The resulting capital flows into European markets are further strengthening the euro’s appeal as a reserve asset, challenging the dollar’s long-held dominance. With the Fed’s next meeting looming, and US politics in flux, global investors are left weighing whether the era of American monetary stability is entering uncharted territory. (With inputs from the agencies)

US dollar sinks to multi-year lows as fears grow over Fed independence and Trump’s push to oust Powell.

Dollar hits 3-year low as Trump eyes Fed shake-up

Chinese ports are breaking records after trade truce with US: What happened?&nbsp;China’s export engine is in overdrive. Ports across the country have just logged their busiest week in recorded history, with cargo shipments and flight volumes reaching unprecedented levels. The sudden surge follows a temporary trade truce with the United States and reflects exporters’ urgency to move goods before Donald Trump’s next tariff wave hits.&nbsp;According to China’s Ministry of Transport, Chinese ports processed 6.7 million standard containers last week, the highest weekly tally ever. That marks a 6 per cent jump over the previous week. The spike comes just weeks after Beijing and Washington struck a deal on May 12, offering a 90-day window before US tariffs snap back into place.&nbsp;As reported by Bloomberg, the rush is not just about beating deadlines, it’s a sign of how deeply trade tensions are reshaping Asia’s shipping flows, infrastructure capacity, and geopolitical strategy.<h2>Ports lead the charge: Record 6.7 million containers in a week</h2>The biggest numbers are coming from China’s ports. The Ministry reported a total of 6.7 million twenty-foot equivalent units (TEUs) moved last week, a figure unmatched in previous years.<figure class="table"><table><tbody><tr><td>Week Ending</td><td>TEUs Processed</td><td>Week-on-Week Change</td></tr><tr><td>June 16</td><td>~6.3 million</td><td>—</td></tr><tr><td>June 23</td><td>6.7 million</td><td>+6%</td></tr></tbody></table></figure>Source: China’s Ministry of Transport via Bloomberg The jump reflects a scramble by exporters to push goods through customs before early-July tariff deadlines come into force. Many Chinese companies are shipping directly to the US, while others are routing through Southeast Asian nations like Vietnam and Thailand to avoid direct tariff exposure. This logistical sprint is also being driven by the steep drop in Chinese exports to the US in May, which, according to Bloomberg, was the worst since the early pandemic years.<h2>Not just seaports — cargo flights and rail soar too</h2>The momentum isn’t limited to sea freight. Chinese air cargo operations also hit new highs. In the week ending June 23, the number of domestic cargo flights surpassed 2,100, the highest ever recorded in a single week. Total cargo flights, including international routes, reached the second-highest weekly level in China’s history.&nbsp;Flight Traffic Overview (March 2023 – June 2025)<ul><li>Domestic cargo flights: &gt;2,100 (record high)</li><li>International cargo flights: remained above 3,000, despite US tariff changes</li></ul>Source: China’s Ministry of Transport via Bloomberg&nbsp;This sharp increase occurred despite the US ending the ‘de minimis’ loophole, which had previously allowed tariff-free imports of small parcels from China. The loophole was a key enabler of low-value e-commerce exports, particularly in fashion and electronics. Even with that barrier, Chinese data shows strong non-US demand for small parcels, helping offset the fall in American consumer orders. In parallel, domestic rail cargo also surged to a record high for this period of the year, highlighting how China is mobilising all modes of transport to clear backlogs and accelerate export turnover.<h2>A wider Asian trend</h2>China isn’t alone in this race. As per Bloomberg, several Asian countries are showing parallel surges in trade with the United States:<ul><li>South Korean exports to the US jumped sharply in the first 20 days of June, extending near-record momentum from May.</li><li>Vietnam, Taiwan, and Thailand each reported record monthly shipments to the US in May.</li></ul>This pattern reflects a broader regional reaction to Washington’s trade policy, as Asian economies try to front-load exports before the US shifts to a more protectionist stance under President Trump’s second term.<h2>Why this matters?&nbsp;</h2>At the heart of this export boom is a narrow window. The May 12 agreement between China and the US granted exporters a 90-day reprieve from new tariffs. That window expires in mid-August, but many importers expect fresh US tariffs to land by early July. This has triggered a rush to export, stock up inventories, and shift trade routes while time remains.&nbsp;But the question now is: Will this surge last? Analysts say it’s likely temporary. Once the 90-day grace period ends, tariffs may return in full force, potentially choking off some of this volume and squeezing China’s trade surplus. Nonetheless, the record numbers show how adept Chinese logistics have become at absorbing shocks, re-routing supply chains, and responding to political pressure with scale and speed.&nbsp;China’s busiest week at its ports is more than a statistical record, it’s a window into the geopolitical fault lines reshaping global trade. With over 6.7 million containers, 2,100 cargo flights, and record rail shipments in one week alone, Beijing is demonstrating that it can adapt to external pressure, at least for now.But as the clock ticks toward August, and with Washington weighing its next move, the real question is whether this logistical sprint marks the start of a new trade normal or just a temporary truce before the next storm. &nbsp;(With inputs from the agencies)&nbsp;

The spike is partly due to exporters rushing to ship goods before anticipated tariffs are reintroduced in early July. 

Chinese ports are breaking records after trade truce with US: What happened? China’s export engine is in overdrive. Ports across the country have just logged their busiest week in recorded history, with cargo shipments and flight volumes reaching unprecedented levels. The sudden surge follows a temporary trade truce with the United States and reflects exporters’ urgency to move goods before Donald Trump’s next tariff wave hits. According to China’s Ministry of Transport, Chinese ports processed 6.7 million standard containers last week, the highest weekly tally ever. That marks a 6 per cent jump over the previous week. The spike comes just weeks after Beijing and Washington struck a deal on May 12, offering a 90-day window before US tariffs snap back into place. As reported by Bloomberg, the rush is not just about beating deadlines, it’s a sign of how deeply trade tensions are reshaping Asia’s shipping flows, infrastructure capacity, and geopolitical strategy. Ports lead the charge: Record 6.7 million containers in a week The biggest numbers are coming from China’s ports. The Ministry reported a total of 6.7 million twenty-foot equivalent units (TEUs) moved last week, a figure unmatched in previous years. Week Ending TEUs Processed Week-on-Week Change June 16 ~6.3 million — June 23 6.7 million +6% Source: China’s Ministry of Transport via Bloomberg The jump reflects a scramble by exporters to push goods through customs before early-July tariff deadlines come into force. Many Chinese companies are shipping directly to the US, while others are routing through Southeast Asian nations like Vietnam and Thailand to avoid direct tariff exposure. This logistical sprint is also being driven by the steep drop in Chinese exports to the US in May, which, according to Bloomberg, was the worst since the early pandemic years. Not just seaports — cargo flights and rail soar too The momentum isn’t limited to sea freight. Chinese air cargo operations also hit new highs. In the week ending June 23, the number of domestic cargo flights surpassed 2,100, the highest ever recorded in a single week. Total cargo flights, including international routes, reached the second-highest weekly level in China’s history. Flight Traffic Overview (March 2023 – June 2025) Domestic cargo flights: >2,100 (record high) International cargo flights: remained above 3,000, despite US tariff changes Source: China’s Ministry of Transport via Bloomberg This sharp increase occurred despite the US ending the ‘de minimis’ loophole, which had previously allowed tariff-free imports of small parcels from China. The loophole was a key enabler of low-value e-commerce exports, particularly in fashion and electronics. Even with that barrier, Chinese data shows strong non-US demand for small parcels, helping offset the fall in American consumer orders. In parallel, domestic rail cargo also surged to a record high for this period of the year, highlighting how China is mobilising all modes of transport to clear backlogs and accelerate export turnover. A wider Asian trend China isn’t alone in this race. As per Bloomberg, several Asian countries are showing parallel surges in trade with the United States: South Korean exports to the US jumped sharply in the first 20 days of June, extending near-record momentum from May. Vietnam, Taiwan, and Thailand each reported record monthly shipments to the US in May. This pattern reflects a broader regional reaction to Washington’s trade policy, as Asian economies try to front-load exports before the US shifts to a more protectionist stance under President Trump’s second term. Why this matters? At the heart of this export boom is a narrow window. The May 12 agreement between China and the US granted exporters a 90-day reprieve from new tariffs. That window expires in mid-August, but many importers expect fresh US tariffs to land by early July. This has triggered a rush to export, stock up inventories, and shift trade routes while time remains. But the question now is: Will this surge last? Analysts say it’s likely temporary. Once the 90-day grace period ends, tariffs may return in full force, potentially choking off some of this volume and squeezing China’s trade surplus. Nonetheless, the record numbers show how adept Chinese logistics have become at absorbing shocks, re-routing supply chains, and responding to political pressure with scale and speed. China’s busiest week at its ports is more than a statistical record, it’s a window into the geopolitical fault lines reshaping global trade. With over 6.7 million containers, 2,100 cargo flights, and record rail shipments in one week alone, Beijing is demonstrating that it can adapt to external pressure, at least for now. But as the clock ticks toward August, and with Washington weighing its next move, the real question is whether this logistical sprint marks the start of a new trade normal or just a temporary truce before the next storm. (With inputs from the agencies)

Chinese ports have reached a historic milestone, processing 6.7 million standard containers in one week, reflecting a surge in exports following a temporary trade truce with the US.

Chinese ports activity is breaking records after trade truce with US: What happened?

The US Federal Reserve is facing a growing internal split: should it guard against persistent inflation risks or respond to signs of a slowing labour market?&nbsp;&nbsp;This debate, now playing out against the backdrop of President Donald Trump’s renewed tariff agenda and political pressure on Fed Chair Jerome Powell, is deepening uncertainty about the central bank’s next move.<h2>Policy divide emerges after rate pause</h2>Following its decision this week to hold interest rates steady between 4.25 per cent and 4.5 per cent, Federal Reserve policymakers have begun to publicly express divergent views on the path forward.&nbsp;Fed Governor Christopher Waller said on Friday he favours a rate cut as early as July, citing cooling inflation and signs of labour market softening, including rising unemployment among new college graduates.&nbsp;&nbsp;Speaking to CNBC, Waller stated, “The data the last few months has been showing that trend inflation is looking pretty good… We could do this as early as July.”&nbsp;As per Reuters, Waller also downplayed the inflationary impact of Trump’s new tariffs, arguing they were not significant enough to delay easing. “Any tariff inflation… I don’t think is going to be that big and we should just look through it in terms of setting policy,” he added.<h2>Barkin warns against premature cuts</h2>However, Richmond Fed President Tom Barkin offered a more cautious view in an interview with Reuters. With inflation still above the Fed’s 2 per cent target, and tariff policy still evolving, Barkin argued that the central bank could afford to wait.&nbsp;“Nothing is burning on either side such that it suggests there’s a rush to act,” Barkin said. “I’m not in a mood to ignore a spike in inflation were it to come… Core inflation is still over target. Being modestly restrictive is a good way to address that.”&nbsp;This divergence reflects what Barkin called a “bimodal” split within the Fed. According to Reuters, seven policymakers expect no rate cuts this year, while eight anticipate two cuts, likely in September and December in line with investor forecasts.<h2>Trump adds political heat, again</h2>President Trump has added fuel to the debate, ramping up pressure on Powell to cut rates. In a Truth Social post on Friday, Trump wrote: “Maybe, just maybe, I’ll have to change my mind about firing him?” — a fresh threat to remove the Fed Chair he appointed.&nbsp;As per Reuters, Trump continues to criticise Powell for not cutting rates fast enough, blaming the central bank for hampering economic growth. Despite his repeated threats, Trump has also frequently reversed course. Just days earlier, on June 12, he told reporters, “I’m not going to fire him.”&nbsp;Powell’s term runs until May 2026, and while a Supreme Court ruling in May reaffirmed the Fed’s unique structure and protections from presidential interference, speculation is mounting about who Trump might nominate as a successor.<h2>Tariffs complicate the inflation picture</h2>Meanwhile, the Fed’s latest monetary policy report, released on Friday, acknowledged that recent import tariffs have already pushed up goods inflation. Though overall inflation remains below expectations, the report suggests that trade policy is beginning to feed into price pressures.&nbsp;The Trump administration continues to defend the tariff hikes, claiming they will benefit the US economy in the long term. However, the Fed’s internal modelling as reported by Reuters, suggests the cost is likely to fall on consumers.&nbsp;Fed projections this week indicated slower growth, higher unemployment, and stickier inflation by year-end, all factors that will make future rate decisions more complex.<h2>Powell to face Congress amid rising tensions</h2>Fed Chair Powell is expected to face tough questions from lawmakers when he testifies before Congress on Tuesday and Wednesday as part of the Fed’s regular semiannual hearings.&nbsp;&nbsp;As quoted by Reuters, Powell on Wednesday said the Fed is prepared to wait for more clarity: “We are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance.”&nbsp;But with political pressure mounting and the Fed split between inflation hawks and labour market doves, all eyes are now on July and whether the data or the politics win out.&nbsp;(With inputs from the agencies) &nbsp;

As Trump pushes for lower rates and inflation risks persist, Fed officials clash over July rate cut prospects, exposing deep policy divisions ahead of Powell’s testimony.

The US Federal Reserve is facing a growing internal split: should it guard against persistent inflation risks or respond to signs of a slowing labour market? This debate, now playing out against the backdrop of President Donald Trump’s renewed tariff agenda and political pressure on Fed Chair Jerome Powell, is deepening uncertainty about the central bank’s next move. Policy divide emerges after rate pause Following its decision this week to hold interest rates steady between 4.25 per cent and 4.5 per cent, Federal Reserve policymakers have begun to publicly express divergent views on the path forward. Fed Governor Christopher Waller said on Friday he favours a rate cut as early as July, citing cooling inflation and signs of labour market softening, including rising unemployment among new college graduates. Speaking to CNBC, Waller stated, “The data the last few months has been showing that trend inflation is looking pretty good… We could do this as early as July.” As per Reuters, Waller also downplayed the inflationary impact of Trump’s new tariffs, arguing they were not significant enough to delay easing. “Any tariff inflation… I don’t think is going to be that big and we should just look through it in terms of setting policy,” he added. Barkin warns against premature cuts However, Richmond Fed President Tom Barkin offered a more cautious view in an interview with Reuters. With inflation still above the Fed’s 2 per cent target, and tariff policy still evolving, Barkin argued that the central bank could afford to wait. “Nothing is burning on either side such that it suggests there’s a rush to act,” Barkin said. “I’m not in a mood to ignore a spike in inflation were it to come… Core inflation is still over target. Being modestly restrictive is a good way to address that.” This divergence reflects what Barkin called a “bimodal” split within the Fed. According to Reuters, seven policymakers expect no rate cuts this year, while eight anticipate two cuts, likely in September and December in line with investor forecasts. Trump adds political heat, again President Trump has added fuel to the debate, ramping up pressure on Powell to cut rates. In a Truth Social post on Friday, Trump wrote: “Maybe, just maybe, I’ll have to change my mind about firing him?” — a fresh threat to remove the Fed Chair he appointed. As per Reuters, Trump continues to criticise Powell for not cutting rates fast enough, blaming the central bank for hampering economic growth. Despite his repeated threats, Trump has also frequently reversed course. Just days earlier, on June 12, he told reporters, “I’m not going to fire him.” Powell’s term runs until May 2026, and while a Supreme Court ruling in May reaffirmed the Fed’s unique structure and protections from presidential interference, speculation is mounting about who Trump might nominate as a successor. Tariffs complicate the inflation picture Meanwhile, the Fed’s latest monetary policy report, released on Friday, acknowledged that recent import tariffs have already pushed up goods inflation. Though overall inflation remains below expectations, the report suggests that trade policy is beginning to feed into price pressures. The Trump administration continues to defend the tariff hikes, claiming they will benefit the US economy in the long term. However, the Fed’s internal modelling as reported by Reuters, suggests the cost is likely to fall on consumers. Fed projections this week indicated slower growth, higher unemployment, and stickier inflation by year-end, all factors that will make future rate decisions more complex. Powell to face Congress amid rising tensions Fed Chair Powell is expected to face tough questions from lawmakers when he testifies before Congress on Tuesday and Wednesday as part of the Fed’s regular semiannual hearings. As quoted by Reuters, Powell on Wednesday said the Fed is prepared to wait for more clarity: “We are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance.” But with political pressure mounting and the Fed split between inflation hawks and labour market doves, all eyes are now on July and whether the data or the politics win out. (With inputs from the agencies)

A growing split at the US Fed pits inflation hawks against labour-focused doves, as Trump’s tariff agenda and political pressure cloud the outlook for rate cuts.&nbsp;

Fed divided on rate cuts as Trump pressure, tariff inflation complicate outlook

The US Federal Reserve held interest rates steady on Wednesday but signalled that rate cuts could still be on the table later this year. Yet a fresh risk has emerged on the horizon: President Donald Trump’s sweeping new import tariffs.&nbsp;&nbsp;Fed Chair Jerome Powell warned that the new duties could trigger a surge in inflation this summer, complicating the central bank’s plan to begin easing monetary policy.&nbsp;“Everyone that I know is forecasting a meaningful increase in inflation in coming months from tariffs,” Powell said, as quoted by Reuters. He warned that although inflation readings had been favourable recently, the full cost of tariffs would eventually hit consumers.&nbsp;The Fed’s decision kept its benchmark overnight interest rate in the 4.25–4.50 per cent range, the highest in over two decades.&nbsp;&nbsp;Policymakers still project two rate cuts before the end of 2025, but they have scaled back the pace of future easing amid rising uncertainty over trade policy, economic growth, and price stability.<h2>Powell: “Cost shock is coming”</h2>Despite the inflationary outlook improving over recent months, Powell said the Fed would need more time to understand how tariffs would impact price pressures.&nbsp;“If not for tariffs, rate cuts might actually be in order,” he said, according to Reuters.He explained that producers, manufacturers, importers, and retailers are still locked in a complex struggle over who will absorb the cost of the tariffs. “We’ll make smarter and better decisions if we just wait a couple of months or however long it takes to get a sense of what the pass-through of inflation is going to be,” he added.<h2>Growth slows, inflation sticks, joblessness rises</h2>The Fed’s updated economic projections revealed a stagflationary tilt. Gross domestic product growth is forecast to slow to 1.4 per cent in 2025, down from 1.7 per cent predicted in March.&nbsp;&nbsp;At the same time, unemployment is projected to rise to 4.5 per cent by year-end, up from the 4.4 per cent earlier estimate. The unemployment rate in May was already ticking up at 4.2 per cent.&nbsp;Headline inflation is now expected to end 2025 at 3 per cent—well above the Fed’s 2 per cent target. Core inflation, which excludes food and energy, is projected to stay elevated at 2.4 per cent through 2026 before finally cooling to 2.1 per cent in 2027.&nbsp;This confluence of weaker growth, rising joblessness and sticky inflation underscores the Fed’s challenge: avoiding a policy misstep as tariffs and global shocks collide with domestic economic weakness.<h2>Trump lashes out at Powell</h2>President Trump, facing both economic headwinds and geopolitical turmoil, lashed out at the Fed during a campaign stop on Wednesday.&nbsp;“Powell is stupid,” Trump said, as quoted by Reuters, demanding that the central bank “slash rates in half”—a move typically associated with financial crises or deep recessions. The president even joked about installing himself as Fed chairman.&nbsp;Despite the pressure, Powell held the line. “No one holds these rate paths with a great deal of conviction,” he responded, reiterating that all decisions remain data dependent.<h2>Fed splits as trade fog clouds outlook</h2>The Fed has already delivered three rate cuts in 2024, the last of which came in December. But in 2025, it has hit pause—waiting for clarity on inflation, trade, and labour market resilience.&nbsp;In a notable sign of internal disagreement, seven of the 19 Fed policymakers now believe no further cuts will be needed this year. “It’s a foggy time,” Powell admitted, as per Reuters, highlighting how uncertainty over Trump’s tariff trajectory is keeping policymakers divided.<h2>Markets steady, oil climbs, geopolitics tense</h2>The US equity markets were largely unmoved by the Fed’s decision. The Dow Jones Industrial Average slipped 0.10 per cent, the S&amp;P 500 edged down 0.03 per cent, while the Nasdaq Composite rose 0.13 per cent.&nbsp;Meanwhile, oil prices continued to climb amid the Israel–Iran conflict. Brent crude settled at 76.70 US dollars per barrel, while West Texas Intermediate rose to 75.14 dollars, both rebounding after early-session declines. On Tuesday, prices had jumped more than 4 per cent.&nbsp;Geopolitics remained tense. Iranian Supreme Leader Ayatollah Ali Khamenei publicly rejected Trump’s demand for unconditional surrender. When asked if Iran’s regime might collapse, Trump responded: “Sure, anything could happen.”<h2>Bond markets react to inflation fears</h2>US Treasury markets reacted cautiously. The 10-year Treasury yield closed unchanged at 4.391 per cent. However, the rate-sensitive two-year yield dipped to 3.939 per cent, down 1.1 basis points from the previous session.&nbsp;Earlier this year, yields had surged on 2 April after Trump unveiled higher-than-expected tariffs—spooking foreign investors and raising fears of capital flight from US debt markets. Although delayed implementation calmed the markets, Powell’s inflation warnings this week have reignited those concerns.<h2>Retail sales slump, job market shows cracks</h2>Recent economic data have added to the sense of slowdown. Retail sales dropped by 0.9 per cent in May—the sharpest monthly decline in four months. At the same time, jobless claims remain at levels consistent with a softening labour market.&nbsp;Despite this, Powell maintained that the broader picture remains stable. “Labour market conditions are still solid,” he said, echoing the Fed’s official statement.<h2>What lies ahead?</h2>The next Fed meeting is scheduled for 16–17 September, with traders now seeing that as the earliest possible window for a rate cut. But much depends on the actual implementation of Trump’s tariff package—and whether its impact is absorbed or passed directly onto households.&nbsp;“For the time being, we are well positioned to wait to learn more about the likely course of the economy,” Powell said, as quoted by Reuters.&nbsp;With markets closed on Thursday for the Juneteenth holiday, investors are bracing for a volatile second half of the year.&nbsp;(With inputs from the agencies) &nbsp;

Fed Chair Powell flags inflation risks from Trump sweeping tariffs as growth slows and unemployment rises, complicating the path for US rate cuts in 2025.

The US Federal Reserve held interest rates steady on Wednesday but signalled that rate cuts could still be on the table later this year. Yet a fresh risk has emerged on the horizon: President Donald Trump’s sweeping new import tariffs. Fed Chair Jerome Powell warned that the new duties could trigger a surge in inflation this summer, complicating the central bank’s plan to begin easing monetary policy. “Everyone that I know is forecasting a meaningful increase in inflation in coming months from tariffs,” Powell said, as quoted by Reuters. He warned that although inflation readings had been favourable recently, the full cost of tariffs would eventually hit consumers. The Fed’s decision kept its benchmark overnight interest rate in the 4.25–4.50 per cent range, the highest in over two decades. Policymakers still project two rate cuts before the end of 2025, but they have scaled back the pace of future easing amid rising uncertainty over trade policy, economic growth, and price stability. Powell: “Cost shock is coming” Despite the inflationary outlook improving over recent months, Powell said the Fed would need more time to understand how tariffs would impact price pressures. “If not for tariffs, rate cuts might actually be in order,” he said, according to Reuters. He explained that producers, manufacturers, importers, and retailers are still locked in a complex struggle over who will absorb the cost of the tariffs. “We’ll make smarter and better decisions if we just wait a couple of months or however long it takes to get a sense of what the pass-through of inflation is going to be,” he added. Growth slows, inflation sticks, joblessness rises The Fed’s updated economic projections revealed a stagflationary tilt. Gross domestic product growth is forecast to slow to 1.4 per cent in 2025, down from 1.7 per cent predicted in March. At the same time, unemployment is projected to rise to 4.5 per cent by year-end, up from the 4.4 per cent earlier estimate. The unemployment rate in May was already ticking up at 4.2 per cent. Headline inflation is now expected to end 2025 at 3 per cent—well above the Fed’s 2 per cent target. Core inflation, which excludes food and energy, is projected to stay elevated at 2.4 per cent through 2026 before finally cooling to 2.1 per cent in 2027. This confluence of weaker growth, rising joblessness and sticky inflation underscores the Fed’s challenge: avoiding a policy misstep as tariffs and global shocks collide with domestic economic weakness. Trump lashes out at Powell President Trump, facing both economic headwinds and geopolitical turmoil, lashed out at the Fed during a campaign stop on Wednesday. “Powell is stupid,” Trump said, as quoted by Reuters, demanding that the central bank “slash rates in half”—a move typically associated with financial crises or deep recessions. The president even joked about installing himself as Fed chairman. Despite the pressure, Powell held the line. “No one holds these rate paths with a great deal of conviction,” he responded, reiterating that all decisions remain data dependent. Fed splits as trade fog clouds outlook The Fed has already delivered three rate cuts in 2024, the last of which came in December. But in 2025, it has hit pause—waiting for clarity on inflation, trade, and labour market resilience. In a notable sign of internal disagreement, seven of the 19 Fed policymakers now believe no further cuts will be needed this year. “It’s a foggy time,” Powell admitted, as per Reuters, highlighting how uncertainty over Trump’s tariff trajectory is keeping policymakers divided. Markets steady, oil climbs, geopolitics tense The US equity markets were largely unmoved by the Fed’s decision. The Dow Jones Industrial Average slipped 0.10 per cent, the S&P 500 edged down 0.03 per cent, while the Nasdaq Composite rose 0.13 per cent. Meanwhile, oil prices continued to climb amid the Israel–Iran conflict. Brent crude settled at 76.70 US dollars per barrel, while West Texas Intermediate rose to 75.14 dollars, both rebounding after early-session declines. On Tuesday, prices had jumped more than 4 per cent. Geopolitics remained tense. Iranian Supreme Leader Ayatollah Ali Khamenei publicly rejected Trump’s demand for unconditional surrender. When asked if Iran’s regime might collapse, Trump responded: “Sure, anything could happen.” Bond markets react to inflation fears US Treasury markets reacted cautiously. The 10-year Treasury yield closed unchanged at 4.391 per cent. However, the rate-sensitive two-year yield dipped to 3.939 per cent, down 1.1 basis points from the previous session. Earlier this year, yields had surged on 2 April after Trump unveiled higher-than-expected tariffs—spooking foreign investors and raising fears of capital flight from US debt markets. Although delayed implementation calmed the markets, Powell’s inflation warnings this week have reignited those concerns. Retail sales slump, job market shows cracks Recent economic data have added to the sense of slowdown. Retail sales dropped by 0.9 per cent in May—the sharpest monthly decline in four months. At the same time, jobless claims remain at levels consistent with a softening labour market. Despite this, Powell maintained that the broader picture remains stable. “Labour market conditions are still solid,” he said, echoing the Fed’s official statement. What lies ahead? The next Fed meeting is scheduled for 16–17 September, with traders now seeing that as the earliest possible window for a rate cut. But much depends on the actual implementation of Trump’s tariff package—and whether its impact is absorbed or passed directly onto households. “For the time being, we are well positioned to wait to learn more about the likely course of the economy,” Powell said, as quoted by Reuters. With markets closed on Thursday for the Juneteenth holiday, investors are bracing for a volatile second half of the year. (With inputs from the agencies)

The Fed holds rates steady but warns Trump’s new tariffs may trigger fresh inflation, casting doubt on future rate cuts and economic stability.

Fed holds rates as Trump tariffs threaten inflation shock: What it means for your money

President Donald Trump strongly backed his decision to impose tariffs on nations trading with the US, and when asked by reporters if he felt a US-Canada trade deal was achievable after stalled negotiations, he said, “I’m a tariff person. I’ve always been a tariff person.”&nbsp;Trump was replying to questions at a presser after meeting Canadian Prime Minister Mark Carney at the G7 summit in Kananaskis, Alberta, on Monday, when he said, “I’m a tariff person. I've always been a tariff person. I think Mark has a more complex idea, but also very good. We’re going to take a look at both.”&nbsp;Their meeting came after weeks of calls and text messages between the two leaders trying to resolve the ongoing trade war triggered by Trump’s tariffs.&nbsp;Trump’s visit to Canada for the G7 Summit is his first since his re-election as president and repeatedly saying that he believes Canada should become the “51st state”. His remarks angered Canadians, many of whom boycotted American products and travel.&nbsp;Earlier, PM Mark Carney met Trump and wished the US president a happy birthday and congratulated him on the 250th anniversary of the US Army.&nbsp;Responding to another question from reporters about Immigration and Customs Enforcement (ICE) deportations, Trump claimed that major cities like Chicago are “overrun with criminals” and added that ICE raids on cities like New York and Los Angeles are a “major focus”.&nbsp;Trump had stormed out of the last G7 summit in 2018, also hosted by Canada, shortly after he slapped steel and aluminium tariffs on Canada, Mexico and Europe..The summit in Charlevoix ended in acrimony and disarray and is mostly remembered for a photo that captured the then German Chancellor Angela Merkel confronting a defiant Trump as other world leaders and US aides looked on.&nbsp;&nbsp;

Trump’s visit to Canada for the G7 Summit is his first since his re-election as president and repeatedly saying that he believes Canada should become the “51st state”. His remarks angered Canadians, many of whom boycotted American products and travel.

President Donald Trump strongly backed his decision to impose tariffs on nations trading with the US, and when asked by reporters if he felt a US-Canada trade deal was achievable after stalled negotiations, he said, “I’m a tariff person. I’ve always been a tariff person.” Trump was replying to questions at a presser after meeting Canadian Prime Minister Mark Carney at the G7 summit in Kananaskis, Alberta, on Monday, when he said, “I’m a tariff person. I've always been a tariff person. I think Mark has a more complex idea, but also very good. We’re going to take a look at both.” Their meeting came after weeks of calls and text messages between the two leaders trying to resolve the ongoing trade war triggered by Trump’s tariffs. Trump’s visit to Canada for the G7 Summit is his first since his re-election as president and repeatedly saying that he believes Canada should become the “51st state”. His remarks angered Canadians, many of whom boycotted American products and travel. Earlier, PM Mark Carney met Trump and wished the US president a happy birthday and congratulated him on the 250th anniversary of the US Army. Responding to another question from reporters about Immigration and Customs Enforcement (ICE) deportations, Trump claimed that major cities like Chicago are “overrun with criminals” and added that ICE raids on cities like New York and Los Angeles are a “major focus”. Trump had stormed out of the last G7 summit in 2018, also hosted by Canada, shortly after he slapped steel and aluminium tariffs on Canada, Mexico and Europe.. The summit in Charlevoix ended in acrimony and disarray and is mostly remembered for a photo that captured the then German Chancellor Angela Merkel confronting a defiant Trump as other world leaders and US aides looked on.

Trump’s visit to Canada for the G7 Summit is his first since his re-election as president and repeatedly saying that he believes Canada should become the “51st state”. His remarks angered Canadians, many of whom boycotted American products and travel.

‘I’ve always been a tariff person,’ Trump says at G7 Summit press meet with Canadian PM

A fragile US-China trade&nbsp;truce appears to be back on track after months of brinkmanship, retaliatory tariffs and curbs on critical exports.&nbsp;&nbsp;US President Donald Trump has now declared that a new deal with China has been finalised the pending formal approval from Chinese President Xi Jinping.&nbsp;The agreement, reached after two days of intense negotiations in London, includes key concessions on rare earth exports, provisions for Chinese students to study in the US, and the imposition of fixed tariffs, marking a potential de-escalation in a trade war that has rattled global markets for months.<h2>Trump says the deal is done</h2>Speaking at Washington’s Kennedy Center on Wednesday, Trump told reporters, “We made a great deal with China. We’re very happy with it. We have everything we need, and we’re going to do very well with it. And hopefully they are too,” as quoted by Reuters&nbsp;&nbsp;The president also confirmed the breakthrough via a post on his social media platform Truth Social: “Our deal with China is done, subject to final approval with President Xi and me. Full magnets, and any necessary rare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!). We are getting a total of 55% tariffs, China is getting 10%.”&nbsp;Trump’s comments followed what officials described as “marathon” negotiations in London, building on a preliminary framework struck in Geneva last month. US Commerce Secretary Howard Lutnick called the London agreement the move that “put meat on the bones” of that earlier deal.&nbsp;According to a senior White House official, the 55 per cent tariff level is a composite of existing tariffs: 25 per cent from Trump’s first term, 20 per cent in response to alleged fentanyl-related trade channels through China, and a baseline 10 per cent reciprocal tariff on all imports.<h2>What about rare earth minerals?&nbsp;</h2>One of the most significant components of the new deal is China’s commitment to remove export restrictions on rare earth minerals and magnetic components materials critical for manufacturing electric vehicles, smartphones, defence systems and semiconductors.&nbsp;This move marks a reversal from Beijing’s earlier stance. In February, China’s Ministry of Commerce imposed tight controls on exports of rare earths such as terbium, dysprosium and gadolinium, citing national security concerns.&nbsp;&nbsp;The US accused China of leveraging these controls as a geopolitical weapon, given its dominant position, holding roughly 36 per cent of global rare earth reserves and nearly 70 per cent of refining capacity.&nbsp;The curbs threatened to choke the US tech and defence supply chains, especially after the US imposed its own export bans on semiconductor design software, AI chips and other dual-use technologies.While Trump has made it clear that the new agreement does not ease US restrictions on AI chips, Treasury Secretary Scott Bessent told lawmakers: “There is no quid pro quo in terms of chips for rare earths,” as quoted by Reuters.&nbsp;Lutnick described the deal on rare earths as “balanced,” but stopped short of detailing which specific minerals or volumes would be resumed. A final implementation mechanism, both sides say, will be triggered after Trump and Xi give the green light.<h2>US-China trade war timeline</h2>The current deal comes after months of escalations and uneasy pauses that have defined President Trump’s second-term approach to Beijing.&nbsp;In February 2025, Trump reignited the trade war by issuing an executive order that imposed a 10 per cent blanket tariff on all Chinese imports. He also scrapped the de minimis exemption for small parcels—targeting what he described as “fentanyl pipelines” using e-commerce routes. In retaliation, China imposed tariffs on key US exports including coal, LNG, crude oil, and vehicle components.&nbsp;&nbsp;It also introduced new export controls on strategic rare earths such as terbium, dysprosium, and gadolinium. By March 2025, the confrontation had escalated.&nbsp;&nbsp;Trump increased tariffs to 20 per cent and then up to 54 per cent under what he called the “Liberation Day” order. Beijing matched every move, with tariffs on US goods climbing to as high as 125 per cent. The standoff intensified when China filed a formal complaint against the US at the World Trade Organization (WTO).&nbsp;&nbsp;Both sides also tightened export controls on semiconductors, artificial intelligence tools, and critical minerals, pushing global supply chains into deeper uncertainty.&nbsp;In May 2025, negotiators reached a fragile truce in Geneva. Tariffs were slightly rolled back and both sides agreed to a 90-day moratorium on new trade measures. But the ceasefire was short-lived. Trump soon accused China of failing to deliver on its commitments, particularly in resuming rare earth shipments. With mutual trust eroding, tensions flared once more.&nbsp;A turning point came in June 2025, after a 90-minute phone call between Trump and Chinese President Xi Jinping on June 5. That dialogue paved the way for high-level talks in London from June 9–10, where both delegations finalised a framework agreement.&nbsp;&nbsp;On June 11, Trump publicly declared the deal “done,” pending formal sign-off from Xi, a move that may yet stabilise one of the most volatile economic relationships in the world.<h2>Uncertainty remains</h2>Despite the celebratory tone from Trump, analysts warn that critical details are still missing. “It’s a done deal, according to President Trump, but we haven’t seen any details, which is why I think the market is not reacting to it yet,” said Oliver Pursche, a senior adviser at Wealthspire Advisors, as quoted by Reuters.&nbsp;The World Bank has already slashed its 2025 global growth forecast to 2.3 per cent, citing higher tariffs and policy unpredictability. Even with a framework in place, Trump’s history of abrupt policy changes has kept investors and trading partners wary.&nbsp;Whether this new deal holds or triggers another round of tariff brinkmanship will depend on how both sides follow through in the weeks ahead.&nbsp;(With inputs from the agencies)

A US-China trade breakthrough is in sight as Trump confirms a deal on rare earths and student visas, but critical details remain unclear.

A fragile US-China trade truce appears to be back on track after months of brinkmanship, retaliatory tariffs and curbs on critical exports. US President Donald Trump has now declared that a new deal with China has been finalised the pending formal approval from Chinese President Xi Jinping. The agreement, reached after two days of intense negotiations in London, includes key concessions on rare earth exports, provisions for Chinese students to study in the US, and the imposition of fixed tariffs, marking a potential de-escalation in a trade war that has rattled global markets for months. Trump says the deal is done Speaking at Washington’s Kennedy Center on Wednesday, Trump told reporters, “We made a great deal with China. We’re very happy with it. We have everything we need, and we’re going to do very well with it. And hopefully they are too,” as quoted by Reuters The president also confirmed the breakthrough via a post on his social media platform Truth Social: “Our deal with China is done, subject to final approval with President Xi and me. Full magnets, and any necessary rare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!). We are getting a total of 55% tariffs, China is getting 10%.” Trump’s comments followed what officials described as “marathon” negotiations in London, building on a preliminary framework struck in Geneva last month. US Commerce Secretary Howard Lutnick called the London agreement the move that “put meat on the bones” of that earlier deal. According to a senior White House official, the 55 per cent tariff level is a composite of existing tariffs: 25 per cent from Trump’s first term, 20 per cent in response to alleged fentanyl-related trade channels through China, and a baseline 10 per cent reciprocal tariff on all imports. What about rare earth minerals? One of the most significant components of the new deal is China’s commitment to remove export restrictions on rare earth minerals and magnetic components materials critical for manufacturing electric vehicles, smartphones, defence systems and semiconductors. This move marks a reversal from Beijing’s earlier stance. In February, China’s Ministry of Commerce imposed tight controls on exports of rare earths such as terbium, dysprosium and gadolinium, citing national security concerns. The US accused China of leveraging these controls as a geopolitical weapon, given its dominant position, holding roughly 36 per cent of global rare earth reserves and nearly 70 per cent of refining capacity. The curbs threatened to choke the US tech and defence supply chains, especially after the US imposed its own export bans on semiconductor design software, AI chips and other dual-use technologies. While Trump has made it clear that the new agreement does not ease US restrictions on AI chips, Treasury Secretary Scott Bessent told lawmakers: “There is no quid pro quo in terms of chips for rare earths,” as quoted by Reuters. Lutnick described the deal on rare earths as “balanced,” but stopped short of detailing which specific minerals or volumes would be resumed. A final implementation mechanism, both sides say, will be triggered after Trump and Xi give the green light. US-China trade war timeline The current deal comes after months of escalations and uneasy pauses that have defined President Trump’s second-term approach to Beijing. In February 2025, Trump reignited the trade war by issuing an executive order that imposed a 10 per cent blanket tariff on all Chinese imports. He also scrapped the de minimis exemption for small parcels—targeting what he described as “fentanyl pipelines” using e-commerce routes. In retaliation, China imposed tariffs on key US exports including coal, LNG, crude oil, and vehicle components. It also introduced new export controls on strategic rare earths such as terbium, dysprosium, and gadolinium. By March 2025, the confrontation had escalated. Trump increased tariffs to 20 per cent and then up to 54 per cent under what he called the “Liberation Day” order. Beijing matched every move, with tariffs on US goods climbing to as high as 125 per cent. The standoff intensified when China filed a formal complaint against the US at the World Trade Organization (WTO). Both sides also tightened export controls on semiconductors, artificial intelligence tools, and critical minerals, pushing global supply chains into deeper uncertainty. In May 2025, negotiators reached a fragile truce in Geneva. Tariffs were slightly rolled back and both sides agreed to a 90-day moratorium on new trade measures. But the ceasefire was short-lived. Trump soon accused China of failing to deliver on its commitments, particularly in resuming rare earth shipments. With mutual trust eroding, tensions flared once more. A turning point came in June 2025, after a 90-minute phone call between Trump and Chinese President Xi Jinping on June 5. That dialogue paved the way for high-level talks in London from June 9–10, where both delegations finalised a framework agreement. On June 11, Trump publicly declared the deal “done,” pending formal sign-off from Xi, a move that may yet stabilise one of the most volatile economic relationships in the world. Uncertainty remains Despite the celebratory tone from Trump, analysts warn that critical details are still missing. “It’s a done deal, according to President Trump, but we haven’t seen any details, which is why I think the market is not reacting to it yet,” said Oliver Pursche, a senior adviser at Wealthspire Advisors, as quoted by Reuters. The World Bank has already slashed its 2025 global growth forecast to 2.3 per cent, citing higher tariffs and policy unpredictability. Even with a framework in place, Trump’s history of abrupt policy changes has kept investors and trading partners wary. Whether this new deal holds or triggers another round of tariff brinkmanship will depend on how both sides follow through in the weeks ahead. (With inputs from the agencies)

President Trump declares a new US-China trade deal is done, easing rare earth curbs and fixing tariffs, pending Xi Jinping’s final approval.

US-China trade truce 2.0? Trump says deal is ‘done’ with fixed 55% tariff regime

After weeks of US-China trade war, US President Donald Trump on Wednesday (June 11) announced that they have reached a deal with China, subject to final approval with Chinese President Xi Jinping.Trump in a post on Truth Social, laid out the details of the deal, saying that full magnets and any necessary rare earths will be supplied to the US.In return, the US will provide to China with what was agreed to, "INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!)," the US president said."OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME," Trump announced.Talking about the tariffs on China and the US, Trump said the US is getting a total of 55% tariffs, while China is getting 10%."WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT! THANK YOU FOR YOUR ATTENTION TO THIS MATTER!," he added.Earlier on Tuesday, top officials from the United States and China said they reached an agreement on a “framework” after two days of high-level trade talks in London.US Commerce Secretary Howard Lutnick expressed optimism, saying that concerns regarding rare earths “will be resolved.”While, China International Trade Representative Li Chenggang separately told reporters, “Our communication has been very professional, rational, in-depth and candid.” He expressed hope that progress made during talks in London would help boost trust between both sides.<h2>US-China trade war</h2>Tensions between the US and China began when Trump signed an executive order imposing a 10 per cent tariff on Chinese imports, on February 1.Days later, China strike back, imposing a 15 per cent tariff on US coal and LNG, and a 10 per cent tariff on crude oil, large vehicles, and farm machinery. Moreover, it also brought in export controls on key rare earth minerals, such as molybdenum and tellurium.The trade war escalated as the two countries began rising the tariff numbers. Later in April, Trump upped the pressure again as he hiked the tariffs first to 104 per cent, then 125, and finally to 145 per cent. China struck back with its own 84 per cent levy. By 11 April, China raised its tariffs to match the US at 125 per cent.&nbsp;

Trump in a post on Truth Social, laid out the details of the deal, saying that full magnets and any necessary rare earths will be supplied to the US.

After weeks of US-China trade war, US President Donald Trump on Wednesday (June 11) announced that they have reached a deal with China, subject to final approval with Chinese President Xi Jinping. Trump in a post on Truth Social, laid out the details of the deal, saying that full magnets and any necessary rare earths will be supplied to the US. In return, the US will provide to China with what was agreed to, "INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!)," the US president said. "OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME," Trump announced. Talking about the tariffs on China and the US, Trump said the US is getting a total of 55% tariffs, while China is getting 10%. "WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT! THANK YOU FOR YOUR ATTENTION TO THIS MATTER!," he added. Earlier on Tuesday, top officials from the United States and China said they reached an agreement on a “framework” after two days of high-level trade talks in London. US Commerce Secretary Howard Lutnick expressed optimism, saying that concerns regarding rare earths “will be resolved.” While, China International Trade Representative Li Chenggang separately told reporters, “Our communication has been very professional, rational, in-depth and candid.” He expressed hope that progress made during talks in London would help boost trust between both sides. US-China trade war Tensions between the US and China began when Trump signed an executive order imposing a 10 per cent tariff on Chinese imports, on February 1. Days later, China strike back, imposing a 15 per cent tariff on US coal and LNG, and a 10 per cent tariff on crude oil, large vehicles, and farm machinery. Moreover, it also brought in export controls on key rare earth minerals, such as molybdenum and tellurium. The trade war escalated as the two countries began rising the tariff numbers. Later in April, Trump upped the pressure again as he hiked the tariffs first to 104 per cent, then 125, and finally to 145 per cent. China struck back with its own 84 per cent levy. By 11 April, China raised its tariffs to match the US at 125 per cent.

Trump in a post on Truth Social, laid out the details of the deal, saying that full magnets and any necessary rare earths will be supplied to the US.

'RELATIONSHIP IS EXCELLENT': US-China finalise trade deal, Trump announces | From tariffs to rare earths - All details inside

Negotiators from India and the United States have concluded a high-stakes round of talks in New Delhi, aiming to seal an interim trade pact before Washington’s tariff suspension expires next month.&nbsp;&nbsp;With pressure mounting, both sides say they’ve made headway, but the clock is ticking.<h2>India and US intensify push for trade pact ahead of tariff deadline</h2>After a week of intense closed-door discussions in the Indian capital, New Delhi and Washington appear to be inching towards a breakthrough on a long-awaited bilateral trade agreement. A senior Indian official, quoted by PTI, confirmed that the two teams engaged in detailed negotiations across a range of sectors, including digital trade, customs facilitation, market access, and sanitary and technical barriers.&nbsp;The talks were held between 4 and 10 June, led by Additional US Trade Representative officials on the American side and senior officials from India’s commerce ministry.&nbsp;&nbsp;According to Reuters, the discussions were described as “productive,” with both parties agreeing to work towards a “balanced and mutually beneficial agreement,” including short-term wins as part of an interim package.<h2>Interim deal may precede larger agreement</h2>According to reports, the primary focus of the latest round was easing market access for both industrial and agricultural goods, along with efforts to reduce tariffs and tackle non-tariff barriers.&nbsp;&nbsp;Negotiators are aiming for a phased agreement with a limited deal likely before the G7 Summit later this month, where Prime Minister Narendra Modi and President Donald Trump are expected to meet.&nbsp;As per PTI, the goal is to finalise the first tranche of the Bilateral Trade Agreement (BTA) by fall 2025, while an interim deal could be sealed as early as late June.&nbsp;&nbsp;This would be critical, as the US has currently paused the imposition of reciprocal tariffs on Indian exports, including a 26 per cent duty that could hit sectors like textiles, footwear, rice, and shrimp until July 9.<h2>Tariffs, digital trade and agriculture in focus</h2>The Indian side is reportedly pushing for full exemption from the 10 per cent baseline tariff the US imposed under national security grounds during Trump’s earlier term.&nbsp;&nbsp;While Washington has so far resisted that demand, India has offered tariff concessions on high-value US exports such as almonds, pistachios and walnuts, according to Bloomberg.&nbsp;India has also declined to open its market to US imports of dairy, wheat and corn, which remain politically sensitive sectors. Meanwhile, both countries are exploring new ground in digital trade, customs efficiency, and legal harmonisation to facilitate smoother bilateral commerce.<h2>Deal likely ahead of Trump-Modi meet</h2>With President Trump keen to score a trade win before the 90-day tariff suspension ends, both sides are under pressure to announce a preliminary agreement by late June.&nbsp;&nbsp;External Affairs Minister S Jaishankar confirmed in an interview with French daily Le Figaro that India remains “hopeful” of striking a deal before July 9.&nbsp;Negotiations are likely to continue through June, possibly culminating in a signing on the sidelines of the G7 Summit in Canada.&nbsp;As the US remains India’s largest trading partner for the fourth consecutive year, with trade totalling $131.84 billion in 2024–25, as per official data, the stakes for a stable trade framework have never been higher.<h2>New Delhi negotiates on multiple fronts</h2>Even as trade talks with Washington intensify, Commerce Minister Piyush Goyal was in Switzerland last week to finalise the India-EFTA trade deal, aimed at strengthening ties with Europe, India’s second-largest trading partner.&nbsp;This multi-track approach signals New Delhi’s efforts to diversify its trade portfolio while securing favourable terms with key partners.&nbsp;&nbsp;But with the US being a strategic and economic heavyweight, the outcome of the current round of negotiations could set the tone for India’s broader trade policy in the years ahead. &nbsp;(With inputs from the agencies)

With US tariffs on Indian exports set to resume next month, both countries accelerate efforts to finalise a limited trade pact by late June.

Negotiators from India and the United States have concluded a high-stakes round of talks in New Delhi, aiming to seal an interim trade pact before Washington’s tariff suspension expires next month. With pressure mounting, both sides say they’ve made headway, but the clock is ticking. India and US intensify push for trade pact ahead of tariff deadline After a week of intense closed-door discussions in the Indian capital, New Delhi and Washington appear to be inching towards a breakthrough on a long-awaited bilateral trade agreement. A senior Indian official, quoted by PTI, confirmed that the two teams engaged in detailed negotiations across a range of sectors, including digital trade, customs facilitation, market access, and sanitary and technical barriers. The talks were held between 4 and 10 June, led by Additional US Trade Representative officials on the American side and senior officials from India’s commerce ministry. According to Reuters, the discussions were described as “productive,” with both parties agreeing to work towards a “balanced and mutually beneficial agreement,” including short-term wins as part of an interim package. Interim deal may precede larger agreement According to reports, the primary focus of the latest round was easing market access for both industrial and agricultural goods, along with efforts to reduce tariffs and tackle non-tariff barriers. Negotiators are aiming for a phased agreement with a limited deal likely before the G7 Summit later this month, where Prime Minister Narendra Modi and President Donald Trump are expected to meet. As per PTI, the goal is to finalise the first tranche of the Bilateral Trade Agreement (BTA) by fall 2025, while an interim deal could be sealed as early as late June. This would be critical, as the US has currently paused the imposition of reciprocal tariffs on Indian exports, including a 26 per cent duty that could hit sectors like textiles, footwear, rice, and shrimp until July 9. Tariffs, digital trade and agriculture in focus The Indian side is reportedly pushing for full exemption from the 10 per cent baseline tariff the US imposed under national security grounds during Trump’s earlier term. While Washington has so far resisted that demand, India has offered tariff concessions on high-value US exports such as almonds, pistachios and walnuts, according to Bloomberg. India has also declined to open its market to US imports of dairy, wheat and corn, which remain politically sensitive sectors. Meanwhile, both countries are exploring new ground in digital trade, customs efficiency, and legal harmonisation to facilitate smoother bilateral commerce. Deal likely ahead of Trump-Modi meet With President Trump keen to score a trade win before the 90-day tariff suspension ends, both sides are under pressure to announce a preliminary agreement by late June. External Affairs Minister S Jaishankar confirmed in an interview with French daily Le Figaro that India remains “hopeful” of striking a deal before July 9. Negotiations are likely to continue through June, possibly culminating in a signing on the sidelines of the G7 Summit in Canada. As the US remains India’s largest trading partner for the fourth consecutive year, with trade totalling $131.84 billion in 2024–25, as per official data, the stakes for a stable trade framework have never been higher. New Delhi negotiates on multiple fronts Even as trade talks with Washington intensify, Commerce Minister Piyush Goyal was in Switzerland last week to finalise the India-EFTA trade deal, aimed at strengthening ties with Europe, India’s second-largest trading partner. This multi-track approach signals New Delhi’s efforts to diversify its trade portfolio while securing favourable terms with key partners. But with the US being a strategic and economic heavyweight, the outcome of the current round of negotiations could set the tone for India’s broader trade policy in the years ahead. (With inputs from the agencies)

India and the US are close to clinching an interim trade deal ahead of a looming tariff deadline, after a week of intensive negotiations in New Delhi.

India and US edge closer to trade deal as deadline for tariff pause nears

The World Bank has cut its forecast for global growth this year, and on Tuesday (June 10) warned that the 2020s are on course for the weakest performance for any decade since the 1960s.The Washington-based global bank published its twice-yearly Global Economic Prospects report, and reduced its forecast for global GDP growth this year to 2.3 per cent, down from 2.7 per cent in January.This would mark to be the slowest growth rate outside full-blown recessions since 2008, according to the bank.It further warned that the global growth in the first seven years of this decade is on course to average 2.5 per cent, which will be the slowest for any decade since the 1960s.<h2>Is Trump tariffs to be blamed?</h2>The World Bank blamed US President Donald Trump's trade war for the 2020s to be the weakest performance for any decade.After returning to the Oval Office, Trump has made several announcements, marking a major shift in the US policies, slapping tariffs on leading economies.With only a “tepid” recovery in global growth, to 2.4%, expected in 2026, the bank said this decade was likely to be the weakest since the 1960s.World Bank’s Chief Economist Indermit Gill said that decades of economic progress in developing countries had all but ground to a halt in recent years, with growth in investment and trade slowing and debt piling up.“Outside of Asia, the developing world is becoming a development-free zone,” he said.“It has been advertising itself for more than a decade. Growth in developing economies has ratcheted down for three decades – from 6% annually in the 2000s to 5% in the 2010s – to less than 4% in the 2020s.”The World Bank prediction assumes that Trump's high "reciprocal" tariffs, announced in April will not be reimposed when the 90-day "pause" he announced last month comes to an end.The bank urged governments to negotiate an end to the ongoing trade conflict. It further called on emerging markets and developing countries to rebuild their public finances by broadening their tax base.The global bank stressed that the situation could worsen further, if tariffs end up being higher than expected and uncertainty continues.“Risks to the global outlook remain tilted decidedly to the downside,” it added. “Growth could turn out to be lower if trade restrictions escalate or if policy uncertainty persists, which could also result in a buildup of financial stress.”

This would mark to be the slowest growth rate outside full-blown recessions since 2008, according to the bank.

The World Bank has cut its forecast for global growth this year, and on Tuesday (June 10) warned that the 2020s are on course for the weakest performance for any decade since the 1960s. The Washington-based global bank published its twice-yearly Global Economic Prospects report, and reduced its forecast for global GDP growth this year to 2.3 per cent, down from 2.7 per cent in January. This would mark to be the slowest growth rate outside full-blown recessions since 2008, according to the bank. It further warned that the global growth in the first seven years of this decade is on course to average 2.5 per cent, which will be the slowest for any decade since the 1960s. Is Trump tariffs to be blamed? The World Bank blamed US President Donald Trump's trade war for the 2020s to be the weakest performance for any decade. After returning to the Oval Office, Trump has made several announcements, marking a major shift in the US policies, slapping tariffs on leading economies. With only a “tepid” recovery in global growth, to 2.4%, expected in 2026, the bank said this decade was likely to be the weakest since the 1960s. World Bank’s Chief Economist Indermit Gill said that decades of economic progress in developing countries had all but ground to a halt in recent years, with growth in investment and trade slowing and debt piling up. “Outside of Asia, the developing world is becoming a development-free zone,” he said. “It has been advertising itself for more than a decade. Growth in developing economies has ratcheted down for three decades – from 6% annually in the 2000s to 5% in the 2010s – to less than 4% in the 2020s.” The World Bank prediction assumes that Trump's high "reciprocal" tariffs, announced in April will not be reimposed when the 90-day "pause" he announced last month comes to an end. The bank urged governments to negotiate an end to the ongoing trade conflict. It further called on emerging markets and developing countries to rebuild their public finances by broadening their tax base. The global bank stressed that the situation could worsen further, if tariffs end up being higher than expected and uncertainty continues. “Risks to the global outlook remain tilted decidedly to the downside,” it added. “Growth could turn out to be lower if trade restrictions escalate or if policy uncertainty persists, which could also result in a buildup of financial stress.”

This would mark to be the slowest growth rate outside full-blown recessions since 2008, according to the bank.

2020s weakest decade since 60s: World Bank's PREDICTION about worsening global economy | Is Trump tariffs to be blamed?

US President Donald Trump is facing mounting criticism both at home and abroad over his tariff policies and ongoing trade war with China.<h2>Viral Chinese AI videos target Trump’s tariff strategy</h2>A new wave of AI-generated videos mocking Trump has gone viral on Chinese social media. According to a CNN report, one of the most talked-about clips features a robot called “Tariff” that chooses to self-destruct rather than carry out Trump’s trade orders.In another video, Trump is reimagined as an anime-inspired superhero wielding tariffs, a parody that has been widely shared across China-controlled digital platforms.Also read: <a href="https://www.wionews.com/world/-making-america-bankrupt-elon-musk-slams-trump-s-big-beautiful-bill-says-shame-on-those-who-voted-for-it-1748974609876">'Making America bankrupt’: Elon Musk slams Trump's 'big, beautiful' bill, says ‘shame on those who&nbsp;voted&nbsp;for&nbsp;it’</a>CNN’s report said the Chinese social media campaign has been running for months and includes previous AI-generated videos showing Trump and Vice President JD Vance “hard at work in factories.”“All untouched by Beijing’s army of online censors designed to push China’s narrative, the US is making a fool of itself and, more importantly, losing ground to China in the global trade war President Trump started,” Ripley reported.<h2>Humour meets politics: Democrats roll out taco truck protest</h2>While Chinese media trolls Trump online, the Democratic National Committee in the US took to the streets. Outside the Republican headquarters in Washington, DC, a taco truck branded with the slogan “Trump Always Chickens Out,” shortened to TACO, was parked in protest of Trump’s repeated threats and backtracking on tariff action.<h2>Trump calls Xi ‘tough’ as key trade call approaches</h2>On Truth Social, Trump posted about Chinese President Xi Jinping, describing him as “very tough and extremely hard to make a deal with.”“I like President Xi of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH,” Trump wrote on Wednesday, 4 June.Just days earlier, Trump had accused China of going back on a previous agreement meant to reduce tariffs and trade restrictions. According to White House press secretary Karoline Leavitt, Trump is expected to speak with Xi this week in an effort to resolve tensions following last month’s Geneva talks.<h2>US courts divided over Trump’s tariff powers</h2>Adding to the week’s drama, a US trade court recently ruled that Trump had overstepped his presidential powers when he imposed broad tariffs on Chinese and other foreign imports under emergency authority.However, less than a day later, a federal appeals court intervened and reinstated the tariffs, putting the earlier ruling on hold while the government’s appeal&nbsp;is&nbsp;reviewed.

While Chinese media trolls Trump online, the Democratic National Committee in the US took to the streets. Outside the Republican headquarters in Washington, DC, a taco truck branded with the slogan “Trump Always Chickens Out,” shortened to TACO

US President Donald Trump is facing mounting criticism both at home and abroad over his tariff policies and ongoing trade war with China. Viral Chinese AI videos target Trump’s tariff strategy A new wave of AI-generated videos mocking Trump has gone viral on Chinese social media. According to a CNN report, one of the most talked-about clips features a robot called “Tariff” that chooses to self-destruct rather than carry out Trump’s trade orders. In another video, Trump is reimagined as an anime-inspired superhero wielding tariffs, a parody that has been widely shared across China-controlled digital platforms. Also read: 'Making America bankrupt’: Elon Musk slams Trump's 'big, beautiful' bill, says ‘shame on those who voted for it’ CNN’s report said the Chinese social media campaign has been running for months and includes previous AI-generated videos showing Trump and Vice President JD Vance “hard at work in factories.” “All untouched by Beijing’s army of online censors designed to push China’s narrative, the US is making a fool of itself and, more importantly, losing ground to China in the global trade war President Trump started,” Ripley reported. Humour meets politics: Democrats roll out taco truck protest While Chinese media trolls Trump online, the Democratic National Committee in the US took to the streets. Outside the Republican headquarters in Washington, DC, a taco truck branded with the slogan “Trump Always Chickens Out,” shortened to TACO, was parked in protest of Trump’s repeated threats and backtracking on tariff action. Trump calls Xi ‘tough’ as key trade call approaches On Truth Social, Trump posted about Chinese President Xi Jinping, describing him as “very tough and extremely hard to make a deal with.” “I like President Xi of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH,” Trump wrote on Wednesday, 4 June. Just days earlier, Trump had accused China of going back on a previous agreement meant to reduce tariffs and trade restrictions. According to White House press secretary Karoline Leavitt, Trump is expected to speak with Xi this week in an effort to resolve tensions following last month’s Geneva talks. US courts divided over Trump’s tariff powers Adding to the week’s drama, a US trade court recently ruled that Trump had overstepped his presidential powers when he imposed broad tariffs on Chinese and other foreign imports under emergency authority. However, less than a day later, a federal appeals court intervened and reinstated the tariffs, putting the earlier ruling on hold while the government’s appeal is reviewed.

While Chinese media trolls Trump online, the Democratic National Committee in the US took to the streets. Outside the Republican headquarters in Washington, DC, a taco truck branded with the slogan “Trump Always Chickens Out,” shortened to TACO.

'US is making fool of itself': Trump trolled in China with AI videos as Democrats roll out 'Trump Always Chickens Out' truck in Capitol Hill

US President Donald Trump claimed his tariffs are driving strong economic growth. But just hours after his latest boast on Truth Social, the Organisation for Economic Co-operation and Development (OECD) released a bleak forecast pointing to a global slowdown, blaming, in part, the very trade policies Trump continues to defend.“Because of Tariffs, our Economy is BOOMING!” Trump wrote early Tuesday. However, the OECD report paints a different picture.Also read: <a href="https://www.wionews.com/world/-i-applied-there-and-didn-t-get-in-journalist-reveals-why-trump-is-beating-up-harvard-us-president-responds-1748948035479">'I applied there, and didn’t get in': Journalist reveals why Trump is ‘beating up’ Harvard, US president responds</a><h2>Global and US growth both projected to decline</h2>The OECD, based in Paris, said global economic growth is expected to drop to 2.9 per cent in 2025, down from 3.3 per cent in 2024. The US economy is predicted to slow even more sharply, from 2.8 per cent this year to just 1.6 per cent in 2025, according to Bloomberg.Economists at the OECD cited trade disruptions, rising uncertainty, and inflationary pressure as key reasons for the weaker outlook. “Lower growth and less trade will hit incomes and slow job growth,” said Alvaro Pereira, the OECD’s chief economist.The report also noted that a shrinking federal workforce in the US is contributing to the economic slowdown.<h2>OECD flags Trump’s tariffs as major threat</h2>The OECD directly linked the gloomy forecast to Trump’s aggressive trade policies. Since his April 2 “Liberation Day” announcement, which included 145 per cent tariffs on Chinese goods, global markets have been in turmoil.China responded with its own 125 per cent tax on US imports, sparking a full-blown trade war. Though both sides agreed to de-escalate in mid-May, with the US lowering tariffs to 30 per cent and China dropping its own to 10 per cent, tensions have quickly returned.Over the weekend, Trump claimed China had “TOTALLY VIOLATED” the agreement, while Beijing accused the US of repeatedly provoking “new trade frictions.”Also Read: <a href="https://www.wionews.com/world/illegal-immigrants-able-bodied-non-workers-7-6-million-in-us-may-lose-medicaid-but-trump-admin-says-they-didn-t-deserve-it-1748950718358">Illegal immigrants, ‘able-bodied’ non-workers: 7.6 million in US may lose Medicaid, but Trump admin says they ‘didn't deserve it’</a><h2>OECD trade ministers gather in Paris amid growing concerns</h2>As the trade war deepens, OECD trade ministers from 38 countries are meeting in Paris this week. Officials include US trade representative Jamieson Greer, EU commissioner Maros Sefcovic, and Lin Feng from China’s Ministry of Commerce.The agenda is clear, lower tariffs, ease global tensions, and restore confidence in trade systems shaken by months of back-and-forth action.But as the world’s largest economies clash, the OECD warned that things could worsen if retaliatory actions continue, investor confidence falls further, or stock markets tumble again.

The OECD, based in Paris, said global economic growth is expected to drop to 2.9 per cent in 2025, down from 3.3 per cent in 2024. The US economy is predicted to slow even more sharply, from 2.8 per cent this year to just 1.6 per cent in 2025, according to Bloomberg.

US President Donald Trump claimed his tariffs are driving strong economic growth. But just hours after his latest boast on Truth Social, the Organisation for Economic Co-operation and Development (OECD) released a bleak forecast pointing to a global slowdown, blaming, in part, the very trade policies Trump continues to defend. “Because of Tariffs, our Economy is BOOMING!” Trump wrote early Tuesday. However, the OECD report paints a different picture. Also read: 'I applied there, and didn’t get in': Journalist reveals why Trump is ‘beating up’ Harvard, US president responds Global and US growth both projected to decline The OECD, based in Paris, said global economic growth is expected to drop to 2.9 per cent in 2025, down from 3.3 per cent in 2024. The US economy is predicted to slow even more sharply, from 2.8 per cent this year to just 1.6 per cent in 2025, according to Bloomberg. Economists at the OECD cited trade disruptions, rising uncertainty, and inflationary pressure as key reasons for the weaker outlook. “Lower growth and less trade will hit incomes and slow job growth,” said Alvaro Pereira, the OECD’s chief economist. The report also noted that a shrinking federal workforce in the US is contributing to the economic slowdown. OECD flags Trump’s tariffs as major threat The OECD directly linked the gloomy forecast to Trump’s aggressive trade policies. Since his April 2 “Liberation Day” announcement, which included 145 per cent tariffs on Chinese goods, global markets have been in turmoil. China responded with its own 125 per cent tax on US imports, sparking a full-blown trade war. Though both sides agreed to de-escalate in mid-May, with the US lowering tariffs to 30 per cent and China dropping its own to 10 per cent, tensions have quickly returned. Over the weekend, Trump claimed China had “TOTALLY VIOLATED” the agreement, while Beijing accused the US of repeatedly provoking “new trade frictions.” Also Read: Illegal immigrants, ‘able-bodied’ non-workers: 7.6 million in US may lose Medicaid, but Trump admin says they ‘didn't deserve it’ OECD trade ministers gather in Paris amid growing concerns As the trade war deepens, OECD trade ministers from 38 countries are meeting in Paris this week. Officials include US trade representative Jamieson Greer, EU commissioner Maros Sefcovic, and Lin Feng from China’s Ministry of Commerce. The agenda is clear, lower tariffs, ease global tensions, and restore confidence in trade systems shaken by months of back-and-forth action. But as the world’s largest economies clash, the OECD warned that things could worsen if retaliatory actions continue, investor confidence falls further, or stock markets tumble again.

The OECD, based in Paris, said global economic growth is expected to drop to 2.9 per cent in 2025, down from 3.3 per cent in 2024. The US economy is predicted to slow even more sharply, from 2.8 per cent this year to just 1.6 per cent in 2025, according to Bloomberg.

Trump claims economy is ‘booming’, but global forecast says his tariffs are dragging growth down

In a move reflecting urgency within the Trump administration, the United States is asking trade partners to submit their best offers by Wednesday (June 4) in an effort to expedite negotiations before a self-imposed deadline in early July.The White House, which has yet to finalise major agreements since President Donald Trump paused tariffs for 90 days on April 9, is aiming to complete as many deals as possible by the expiration of this pause on July 8.According to Reuters, the US Trade Representative has directed countries involved in active negotiations to submit proposals in a variety of key areas, including tariffs and quotas on US industrial and agricultural products.Additionally, Washington is pushing for trade partners to outline plans for addressing non-tariff barriers, committing to digital trade rules, and ensuring economic security. The administration plans to evaluate the responses quickly and offer a “possible landing zone” that could involve reciprocal tariff rates, Reuters&nbsp;reported.The draft letter that the news report referred to did not specify which countries would receive the request, though it is expected that negotiations with the European Union (EU), Japan, Vietnam, India, South Korea and other nations currently engaged in trade talks will be among the recipients.&nbsp;Racing against time&nbsp;As the clock ticks toward the July 8 deadline, the Trump administration has ramped up efforts to wrap up multiple trade deals. While officials have expressed optimism, only one deal has been announced since the pause on tariffs—a limited framework with Britain.Negotiations with other countries, including major US trading partners, remain ongoing, raising concerns about whether the ambitious target of “90 deals in 90 days” will be met.Deputy Treasury Secretary Michael Faulkender acknowledged on June 2 that while significant progress has been made, only a few deals are close to completion.“As long as we continue to make progress, I think you’re going to see a lot more deals that are announced prior to that July 9 time frame,” Faulkender told CNBC.Despite the apparent lack of finalised agreements, Reuters reported that White House economic adviser Kevin Hassett remains optimistic. He emphasised that the Trump administration aims to “reach at least terms of an agreement prior to the expiration of that pause”, stressing the importance of goodwill from trade partners to continue making progress toward closing deals.However, the White House faces the challenge of navigating complex negotiations. With little time remaining, Faulkender admitted that the process can be slow and complicated. Still, he expressed confidence that substantial progress could be achieved in the coming weeks. “We are looking to conclude as many discussions as possible before the pause ends,” he said.&nbsp;Legal challenges loom&nbsp;The legal basis for Trump’s tariff policies remains in question. Last week, the US Court of International Trade ruled that the Trump administration had overstepped its authority in using the International Emergency Economic Powers Act (IEEPA) to impose tariffs, including the controversial “Liberation Day” levies. These tariffs targeted countries such as Canada, Mexico, and China, accusing them of facilitating the flow of fentanyl into the US.However, the ruling was quickly stayed by an appeals court, allowing the tariffs to remain in effect while the legal battle continues.Reuters&nbsp;reported that the draft letter sent to trading partners warns that, regardless of the ongoing litigation, Trump intends to continue his tariff programme through other legal channels, if necessary. “It is important that we continue our discussions on these matters," the letter states.The White House has also faced increasing tension with China, as the two nations continue to clash over trade and economic issues. The Trump administration accused China of violating a preliminary trade agreement by delaying the renewal of critical mineral exports to the US.Meanwhile, China has pushed back, accusing the US of undermining the deal with new restrictions on Chinese student visas and other measures.Despite these tensions, Kevin Hassett hinted on June 1 that a potential meeting between Trump and Chinese President Xi Jinping could take place as soon as this week. The outcome of these discussions may have significant implications for the future of US-China trade relations.As the deadline draws nearer, the Trump administration remains determined to finalise as many trade agreements as possible, but whether it can achieve its ambitious goals remains uncertain.

the Trump administration has ramped up efforts to wrap up multiple trade deals. While officials have expressed optimism, only one deal has been announced since the pause on tariffs—a limited framework with Britain.

In a move reflecting urgency within the Trump administration, the United States is asking trade partners to submit their best offers by Wednesday (June 4) in an effort to expedite negotiations before a self-imposed deadline in early July. The White House, which has yet to finalise major agreements since President Donald Trump paused tariffs for 90 days on April 9, is aiming to complete as many deals as possible by the expiration of this pause on July 8. According to Reuters, the US Trade Representative has directed countries involved in active negotiations to submit proposals in a variety of key areas, including tariffs and quotas on US industrial and agricultural products. Additionally, Washington is pushing for trade partners to outline plans for addressing non-tariff barriers, committing to digital trade rules, and ensuring economic security. The administration plans to evaluate the responses quickly and offer a “possible landing zone” that could involve reciprocal tariff rates, Reuters reported. The draft letter that the news report referred to did not specify which countries would receive the request, though it is expected that negotiations with the European Union (EU), Japan, Vietnam, India, South Korea and other nations currently engaged in trade talks will be among the recipients. Racing against time As the clock ticks toward the July 8 deadline, the Trump administration has ramped up efforts to wrap up multiple trade deals. While officials have expressed optimism, only one deal has been announced since the pause on tariffs—a limited framework with Britain. Negotiations with other countries, including major US trading partners, remain ongoing, raising concerns about whether the ambitious target of “90 deals in 90 days” will be met. Deputy Treasury Secretary Michael Faulkender acknowledged on June 2 that while significant progress has been made, only a few deals are close to completion. “As long as we continue to make progress, I think you’re going to see a lot more deals that are announced prior to that July 9 time frame,” Faulkender told CNBC. Despite the apparent lack of finalised agreements, Reuters reported that White House economic adviser Kevin Hassett remains optimistic. He emphasised that the Trump administration aims to “reach at least terms of an agreement prior to the expiration of that pause”, stressing the importance of goodwill from trade partners to continue making progress toward closing deals. However, the White House faces the challenge of navigating complex negotiations. With little time remaining, Faulkender admitted that the process can be slow and complicated. Still, he expressed confidence that substantial progress could be achieved in the coming weeks. “We are looking to conclude as many discussions as possible before the pause ends,” he said. Legal challenges loom The legal basis for Trump’s tariff policies remains in question. Last week, the US Court of International Trade ruled that the Trump administration had overstepped its authority in using the International Emergency Economic Powers Act (IEEPA) to impose tariffs, including the controversial “Liberation Day” levies. These tariffs targeted countries such as Canada, Mexico, and China, accusing them of facilitating the flow of fentanyl into the US. However, the ruling was quickly stayed by an appeals court, allowing the tariffs to remain in effect while the legal battle continues. Reuters reported that the draft letter sent to trading partners warns that, regardless of the ongoing litigation, Trump intends to continue his tariff programme through other legal channels, if necessary. “It is important that we continue our discussions on these matters," the letter states. The White House has also faced increasing tension with China, as the two nations continue to clash over trade and economic issues. The Trump administration accused China of violating a preliminary trade agreement by delaying the renewal of critical mineral exports to the US. Meanwhile, China has pushed back, accusing the US of undermining the deal with new restrictions on Chinese student visas and other measures. Despite these tensions, Kevin Hassett hinted on June 1 that a potential meeting between Trump and Chinese President Xi Jinping could take place as soon as this week. The outcome of these discussions may have significant implications for the future of US-China trade relations. As the deadline draws nearer, the Trump administration remains determined to finalise as many trade agreements as possible, but whether it can achieve its ambitious goals remains uncertain.

The Trump administration has ramped up efforts to wrap up multiple trade deals. While officials have expressed optimism, only one deal has been announced since the pause on tariffs—a limited framework with Britain.

US asks trade partners to submit best offers by June 4 as deadline looms

China has strongly rejected former US President Donald Trump’s recent claims that Beijing broke a trade deal designed to ease tensions between the two nations. In a firm response, China’s Commerce Ministry called the accusations “unjustified” and said it would take “forceful measures” to defend its interests.“The United States has unilaterally and repeatedly provoked new economic and trade frictions, exacerbating uncertainty and instability in bilateral economic and trade relations,” the ministry said in a statement shared through state media. “Instead of reflecting on its own actions, the United States has groundlessly accused China of violating the consensus, a claim that grossly distorts the facts,” it added.Also read: <a href="https://www.wionews.com/world/-geopolitical-insult-donald-trump-was-not-informed-about-ukraine-s-operation-spider-web-against-russia-1748861373784">'Geopolitical insult': Donald Trump was 'not informed' about Ukraine's Operation Spider Web against Russia</a><h2>Trump claims he saved China from collapse</h2>Trump reignited tensions on May 30 when he took to Truth Social, accusing China of completely breaching the agreement both sides reached in Geneva earlier this year.“China has TOTALLY VIOLATED the deal,” Trump wrote. He claimed the agreement was made after he noticed “many factories closed” and “civil unrest” in China. “I saw what was happening and didn’t like it, for them, not for us. I made a FAST DEAL with China in order to save them from what I thought was going to be a very bad situation,” Trump added. “So much for being Mr. NICE GUY,” Trump added.<h2>Tariff war flared and cooled in quick succession</h2>The renewed war of words comes weeks after the two nations briefly stepped back from a major trade war. Trump’s “Liberation Day” tariff plan on April 2 sent markets tumbling, with his administration initially announcing duties that raised Chinese import tariffs to 145%. In response, China slapped its own 125% tax on US goods.The conflict de-escalated after Geneva talks in May, where both sides agreed to soften their stances, Washington lowered its planned tariffs to 30%, while Beijing reduced its counter-tariffs to 10%.<h2>Washington accuses China of supply delays</h2>Despite the agreement, the Trump administration later alleged that China violated the terms by withholding vital supplies to the US defence, electronics, and automotive industries.“What China is doing is they are holding back products that are essential for the industrial supply chains of India, of Europe, and that is not what a reliable partner does,” said Treasury Secretary Scott Bessent in an interview with CBS’ Face the Nation.<h2>Beijing accuses US of breaching Geneva deal</h2>China, meanwhile, accused the US of failing to stick to the Geneva pact. The Commerce Ministry pointed to several recent moves by the US government as examples of unfair treatment. These include new restrictions on AI chip exports, a ban on selling chip design tools to Chinese firms, and cancelling student visas for Chinese nationals.The Chinese statement framed these steps as “discriminatory” and “restrictive”, saying they go against the spirit of the trade consensus.<h2>Leaders may talk soon</h2>Despite rising tensions, a top US official hinted that a phone conversation between Trump and Chinese President Xi Jinping may be on the cards soon. Kevin Hassett, Director of the National Economic Council, told ABC News’ This Week that both leaders could speak in the coming days to discuss the dispute.

Trump reignited tensions on May 30 when he took to Truth Social, accusing China of completely breaching the agreement both sides reached in Geneva earlier this year.

China has strongly rejected former US President Donald Trump’s recent claims that Beijing broke a trade deal designed to ease tensions between the two nations. In a firm response, China’s Commerce Ministry called the accusations “unjustified” and said it would take “forceful measures” to defend its interests. “The United States has unilaterally and repeatedly provoked new economic and trade frictions, exacerbating uncertainty and instability in bilateral economic and trade relations,” the ministry said in a statement shared through state media. “Instead of reflecting on its own actions, the United States has groundlessly accused China of violating the consensus, a claim that grossly distorts the facts,” it added. Also read: 'Geopolitical insult': Donald Trump was 'not informed' about Ukraine's Operation Spider Web against Russia Trump claims he saved China from collapse Trump reignited tensions on May 30 when he took to Truth Social, accusing China of completely breaching the agreement both sides reached in Geneva earlier this year. “China has TOTALLY VIOLATED the deal,” Trump wrote. He claimed the agreement was made after he noticed “many factories closed” and “civil unrest” in China. “I saw what was happening and didn’t like it, for them, not for us. I made a FAST DEAL with China in order to save them from what I thought was going to be a very bad situation,” Trump added. “So much for being Mr. NICE GUY,” Trump added. Tariff war flared and cooled in quick succession The renewed war of words comes weeks after the two nations briefly stepped back from a major trade war. Trump’s “Liberation Day” tariff plan on April 2 sent markets tumbling, with his administration initially announcing duties that raised Chinese import tariffs to 145%. In response, China slapped its own 125% tax on US goods. The conflict de-escalated after Geneva talks in May, where both sides agreed to soften their stances, Washington lowered its planned tariffs to 30%, while Beijing reduced its counter-tariffs to 10%. Washington accuses China of supply delays Despite the agreement, the Trump administration later alleged that China violated the terms by withholding vital supplies to the US defence, electronics, and automotive industries. “What China is doing is they are holding back products that are essential for the industrial supply chains of India, of Europe, and that is not what a reliable partner does,” said Treasury Secretary Scott Bessent in an interview with CBS’ Face the Nation. Beijing accuses US of breaching Geneva deal China, meanwhile, accused the US of failing to stick to the Geneva pact. The Commerce Ministry pointed to several recent moves by the US government as examples of unfair treatment. These include new restrictions on AI chip exports, a ban on selling chip design tools to Chinese firms, and cancelling student visas for Chinese nationals. The Chinese statement framed these steps as “discriminatory” and “restrictive”, saying they go against the spirit of the trade consensus. Leaders may talk soon Despite rising tensions, a top US official hinted that a phone conversation between Trump and Chinese President Xi Jinping may be on the cards soon. Kevin Hassett, Director of the National Economic Council, told ABC News’ This Week that both leaders could speak in the coming days to discuss the dispute.

Trump reignited tensions on May 30 when he took to Truth Social, accusing China of completely breaching the agreement both sides reached in Geneva earlier this year.

'Grossly distorting the facts': China blasts Trump over trade deal accusations, warns of retaliation

<div class="x_elementToProof" data-olk-copy-source="MessageBody">China&rsquo;s services sector experienced its slowest growth in seven months this April, as escalating US tariffs dampened business sentiment and hiring plans. According to Reuters, the Caixin/S&amp;P Global Services Purchasing Managers&rsquo; Index (PMI) fell to 50.7 from March&rsquo;s 51.9, marking the lowest reading since September. A PMI above 50 indicates expansion, while below 50 signifies contraction.</div>
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<div class="x_elementToProof">This deceleration aligns with the official survey, which reported a slight dip in services activity to 50.1 from 50.3 the previous month. The Caixin PMI is often viewed as a more accurate reflection of trends among export-oriented and smaller firms.</div>
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<div class="x_elementToProof">Despite stronger-than-expected economic growth in the first quarter, bolstered by government stimulus, China&rsquo;s economy faces persistent deflationary risks, a prolonged property slump, and mounting challenges from US tariffs. In 2023, approximately 48 per cent of China&rsquo;s workforce was employed in the services industry, which contributed 56.7 per cent to the nation&rsquo;s GDP. However, the ongoing trade tensions have begun to weigh on business hiring plans and consumer confidence.</div>
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<div class="x_elementToProof">&ldquo;With a cloud over the market outlook, both business and consumer confidence are subdued, making it harder to boost domestic demand,&rdquo; said Wang Zhe, Senior Economist at Caixin Insight Group, as reported by Reuters. &ldquo;The ripple effects of the ongoing China-US tariff standoff will gradually be felt in the second and third quarters. As such, policymakers should prepare well and take action sooner rather than later,&rdquo; he added.</div>
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<div class="x_elementToProof">The Caixin services survey indicated that new business growth slowed to its weakest since December 2022, though export orders saw a slight uptick, partly due to a recovery in tourism. Some service providers cited disruptions from US tariffs impacting goods trade.</div>
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<div class="x_elementToProof">Business sentiment in the services sector grew at the slowest pace since February 2020, with companies identifying US tariffs as a significant concern. To curb costs, service providers reduced jobs for the second consecutive month, leading to a rise in backlogged work and pushing the corresponding gauge into expansionary territory for the first time this year. Firms also cut prices to attract customers, despite facing higher input costs.</div>
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<div class="x_elementToProof">The Caixin China General Composite PMI, which combines both manufacturing and services activity, fell to 51.1 in April from 51.8 the previous month.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">In response to these challenges, China&rsquo;s ruling Communist Party&rsquo;s Politburo pledged last month to support firms and workers most affected by the impact of triple-digit US tariffs and urged the country to prepare for worst-case scenarios. Economists at Morgan Stanley projected that second-quarter growth could slow by one percentage point as tariffs take effect. They anticipate that Beijing will navigate these challenges with cautious and uneven stimulus policies, relying on investment in emerging sectors and urban renewal, while gradually shifting policy towards consumption over the medium term.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">The ongoing trade tensions have also impacted other sectors. For instance, Hong Kong&rsquo;s freight forwarding industry is experiencing significant disruptions, with 41 per cent of container capacity to North America&rsquo;s west coast canceled for the week starting May 12, according to the South China Morning Post, as reported by Reuters. This highlights the broader economic implications of the US-China trade war, signaling further turbulence ahead for both regional logistics and global trade infrastructure.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">The US-China trade talks</div>
<div class="x_elementToProof">&nbsp;</div>
<div class="x_elementToProof">In April 2025, President Donald Trump escalated the trade conflict with China by imposing a 145 per cent tariff on Chinese imports, citing concerns over trade imbalances and national security. In retaliation, China levied a 125 per cent tariff on US goods, triggering a sharp downturn in bilateral trade.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Despite the friction, both countries have signalled cautious interest in returning to the negotiating table. China&rsquo;s Ministry of Commerce said it is &ldquo;evaluating&rdquo; Washington&rsquo;s outreach for potential tariff talks but rejected any form of intimidation. Trump, meanwhile, reaffirmed he would not drop tariffs just to resume dialogue, demanding what he calls a &ldquo;fair and reciprocal&rdquo; trade deal.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">On May 5, 2025, China&rsquo;s Ministry of Commerce issued a firm rebuttal to US pressure tactics. Ministry spokesperson He Yongqian stated, &ldquo;Pressure, threats and blackmail are not the right way to deal with China. We hope that the two countries will meet each other halfway and work towards resolving differences through dialogue and consultation, guided by the principles of mutual respect, peaceful coexistence and win-win cooperation.&rdquo;</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">He added that if the US insists on pursuing a trade war, China is prepared to &ldquo;fight to the end.&rdquo; However, the country remains open to fair negotiations conducted on equal terms. To counter the impact of tariffs, Beijing is advancing economic resilience strategies&mdash;boosting domestic demand through consumer trade-in programs, promoting premium goods events, and encouraging foreign trade firms to tap into China&rsquo;s vast local market.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">&ldquo;We can see that the potential of China&rsquo;s super-large domestic market is constantly being unleashed,&rdquo; He said. &ldquo;China&rsquo;s foreign trade sector has the confidence and capability to withstand various risk challenges.&rdquo;</div>

Business & Economy: China’s services growth slows amid US tariffs. Caixin PMI drops to 50.7. Beijing urges fair talks, warns against pressure as trade war intensifies.

China’s services sector experienced its slowest growth in seven months this April, as escalating US tariffs dampened business sentiment and hiring plans. According to Reuters, the Caixin/S&P Global Services Purchasing Managers’ Index (PMI) fell to 50.7 from March’s 51.9, marking the lowest reading since September. A PMI above 50 indicates expansion, while below 50 signifies contraction. This deceleration aligns with the official survey, which reported a slight dip in services activity to 50.1 from 50.3 the previous month. The Caixin PMI is often viewed as a more accurate reflection of trends among export-oriented and smaller firms. Despite stronger-than-expected economic growth in the first quarter, bolstered by government stimulus, China’s economy faces persistent deflationary risks, a prolonged property slump, and mounting challenges from US tariffs. In 2023, approximately 48 per cent of China’s workforce was employed in the services industry, which contributed 56.7 per cent to the nation’s GDP. However, the ongoing trade tensions have begun to weigh on business hiring plans and consumer confidence. “With a cloud over the market outlook, both business and consumer confidence are subdued, making it harder to boost domestic demand,” said Wang Zhe, Senior Economist at Caixin Insight Group, as reported by Reuters. “The ripple effects of the ongoing China-US tariff standoff will gradually be felt in the second and third quarters. As such, policymakers should prepare well and take action sooner rather than later,” he added. The Caixin services survey indicated that new business growth slowed to its weakest since December 2022, though export orders saw a slight uptick, partly due to a recovery in tourism. Some service providers cited disruptions from US tariffs impacting goods trade. Business sentiment in the services sector grew at the slowest pace since February 2020, with companies identifying US tariffs as a significant concern. To curb costs, service providers reduced jobs for the second consecutive month, leading to a rise in backlogged work and pushing the corresponding gauge into expansionary territory for the first time this year. Firms also cut prices to attract customers, despite facing higher input costs. The Caixin China General Composite PMI, which combines both manufacturing and services activity, fell to 51.1 in April from 51.8 the previous month. In response to these challenges, China’s ruling Communist Party’s Politburo pledged last month to support firms and workers most affected by the impact of triple-digit US tariffs and urged the country to prepare for worst-case scenarios. Economists at Morgan Stanley projected that second-quarter growth could slow by one percentage point as tariffs take effect. They anticipate that Beijing will navigate these challenges with cautious and uneven stimulus policies, relying on investment in emerging sectors and urban renewal, while gradually shifting policy towards consumption over the medium term. The ongoing trade tensions have also impacted other sectors. For instance, Hong Kong’s freight forwarding industry is experiencing significant disruptions, with 41 per cent of container capacity to North America’s west coast canceled for the week starting May 12, according to the South China Morning Post, as reported by Reuters. This highlights the broader economic implications of the US-China trade war, signaling further turbulence ahead for both regional logistics and global trade infrastructure. The US-China trade talks In April 2025, President Donald Trump escalated the trade conflict with China by imposing a 145 per cent tariff on Chinese imports, citing concerns over trade imbalances and national security. In retaliation, China levied a 125 per cent tariff on US goods, triggering a sharp downturn in bilateral trade. Despite the friction, both countries have signalled cautious interest in returning to the negotiating table. China’s Ministry of Commerce said it is “evaluating” Washington’s outreach for potential tariff talks but rejected any form of intimidation. Trump, meanwhile, reaffirmed he would not drop tariffs just to resume dialogue, demanding what he calls a “fair and reciprocal” trade deal. On May 5, 2025, China’s Ministry of Commerce issued a firm rebuttal to US pressure tactics. Ministry spokesperson He Yongqian stated, “Pressure, threats and blackmail are not the right way to deal with China. We hope that the two countries will meet each other halfway and work towards resolving differences through dialogue and consultation, guided by the principles of mutual respect, peaceful coexistence and win-win cooperation.” He added that if the US insists on pursuing a trade war, China is prepared to “fight to the end.” However, the country remains open to fair negotiations conducted on equal terms. To counter the impact of tariffs, Beijing is advancing economic resilience strategies—boosting domestic demand through consumer trade-in programs, promoting premium goods events, and encouraging foreign trade firms to tap into China’s vast local market. “We can see that the potential of China’s super-large domestic market is constantly being unleashed,” He said. “China’s foreign trade sector has the confidence and capability to withstand various risk challenges.”

US tariffs stall China’s services growth: PMI hits 7-month low as trade tensions escalate

California is suing the federal government over Donald Trump's on-again-off-again tariffs, the governor and attorney general said Wednesday, claiming the American president does not have the right to impose them.
The move marks the strongest pushback yet against a tariff roll-out that has sent global stock markets into meltdown, and left businesses across the US fretting about uncertainty.
"It's the worst own-goal in the history of this country," California Governor Gavin Newsom said. "One of the most self-destructive things that we've experienced in modern American history."
With 40 million people and a large, outward-facing economy that accounts for 14 percent of US GDP, California looks set to bear the brunt of the economic damage forecasters expect from recent gyrations.
Newsom's office says California -- which would be the world's fifth-largest economy if it were an independent country -- could lose billions of dollars in revenue if Trump's tariff policies shrink international trade.
Trump has long prized tariffs as a tool to achieve what he says is the urgent task of rebalancing America's trading relationships, and pledged on the campaign trail that he would hit imports with extra levies.
Initial punitive tariffs against Mexico and Canada were built on with his self-declared "Liberation Day," which saw onerous charges imposed on scores of countries, including allies and partners.
Many of those duties have since been paused, but their chaotic announcement sent global stock markets into spasms, wiping out trillions of dollars of value.
Newsom said Trump's economic mismanagement was costing everyday Americans -- including many who voted for Trump -- dearly, all while feathering the nests of billionaire donors and friends.
The United States, he said, has gone in a matter of weeks "from free capitalism to crony capitalism, just like that."
"This is the personification of corruption...this is smash-mouth, in-your-face, every minute of every day, every hour.
"How in the hell are we sitting by and allowing this to happen?" said Newsom, who is widely expected to put himself forward as a candidate for the presidency in 2028.
The legal action launched Wednesday argues that the International Emergency Economic Powers Act, which Trump has used to impose levies as high as 145 percent, does not grant him the authority to put tariffs on goods coming into the United States.
"We're asking the court to rein in the president... and uphold the Constitution," Attorney General Rob Bonta told reporters.
"The president is yet again acting as if he's above the law, he isn't."
Bonta said the power to impose tariffs rests with Congress, and the suit sought to ensure his actions were rolled back.
"It's simple, Trump does not have the authority to impose these tariffs. He must be stopped."
The case is the latest of more than a dozen lawsuits that California has filed against the Trump administration.
A White House spokesman quoted by local media dismissed the lawsuit.
"Instead of focusing on California's rampant crime, homelessness, and unaffordability, Gavin Newsom is spending his time trying to block President Trump's historic efforts to finally address the national emergency of our country's persistent goods trade deficits," the spokesman said.
<div class="post-content">
Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.
</div>

World | The move marks the strongest pushback yet against a tariff roll-out that has sent global stock markets into meltdown, and left businesses across the US fretting about uncertainty.

California is suing the federal government over Donald Trump's on-again-off-again tariffs, the governor and attorney general said Wednesday, claiming the American president does not have the right to impose them. The move marks the strongest pushback yet against a tariff roll-out that has sent global stock markets into meltdown, and left businesses across the US fretting about uncertainty. "It's the worst own-goal in the history of this country," California Governor Gavin Newsom said. "One of the most self-destructive things that we've experienced in modern American history." With 40 million people and a large, outward-facing economy that accounts for 14 percent of US GDP, California looks set to bear the brunt of the economic damage forecasters expect from recent gyrations. Newsom's office says California -- which would be the world's fifth-largest economy if it were an independent country -- could lose billions of dollars in revenue if Trump's tariff policies shrink international trade. Trump has long prized tariffs as a tool to achieve what he says is the urgent task of rebalancing America's trading relationships, and pledged on the campaign trail that he would hit imports with extra levies. Initial punitive tariffs against Mexico and Canada were built on with his self-declared "Liberation Day," which saw onerous charges imposed on scores of countries, including allies and partners. Many of those duties have since been paused, but their chaotic announcement sent global stock markets into spasms, wiping out trillions of dollars of value. Newsom said Trump's economic mismanagement was costing everyday Americans -- including many who voted for Trump -- dearly, all while feathering the nests of billionaire donors and friends. The United States, he said, has gone in a matter of weeks "from free capitalism to crony capitalism, just like that." "This is the personification of corruption...this is smash-mouth, in-your-face, every minute of every day, every hour. "How in the hell are we sitting by and allowing this to happen?" said Newsom, who is widely expected to put himself forward as a candidate for the presidency in 2028. The legal action launched Wednesday argues that the International Emergency Economic Powers Act, which Trump has used to impose levies as high as 145 percent, does not grant him the authority to put tariffs on goods coming into the United States. "We're asking the court to rein in the president... and uphold the Constitution," Attorney General Rob Bonta told reporters. "The president is yet again acting as if he's above the law, he isn't." Bonta said the power to impose tariffs rests with Congress, and the suit sought to ensure his actions were rolled back. "It's simple, Trump does not have the authority to impose these tariffs. He must be stopped." The case is the latest of more than a dozen lawsuits that California has filed against the Trump administration. A White House spokesman quoted by local media dismissed the lawsuit. "Instead of focusing on California's rampant crime, homelessness, and unaffordability, Gavin Newsom is spending his time trying to block President Trump's historic efforts to finally address the national emergency of our country's persistent goods trade deficits," the spokesman said. Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

California sues Trump administration over 'on-again-off-again' tariffs

The World Trade Organization has slashed its forecast for global trade this year amid the turbulence over the sharp spike in US tariffs and consequent uncertainty that has battered market sentiments and stock indices.
The latest Global Trade Outlook released by the World Trade Organization on April 16 says US President Donald Trump&rsquo;s tariffs will force a 0.2% contraction by volume in global trade in 2025, instead of the 2.7% growth that was projected otherwise. The Geneva-based WTO further warns that if Trump lifts the pause on his earlier announced reciprocal tariffs, it would amplify the problems, and the contraction could be even much bigger.&nbsp;
&ldquo;Together, reciprocal tariffs and spreading trade policy uncertainty would lead to a 1.5% decline in world merchandise trade in 2025,&rdquo; the WTO said in its report Wednesday. North American trade will be hardest hit, while Asia and Europe will see a modest rise in growth, it added. Also read |&nbsp;<a href="https://www.wionews.com/world/stop-threatening-china-warns-after-us-slaps-beijing-with-whopping-245-tariffs-donald-trump-trade-war-imports-8968395" target="_blank" rel="noopener">'Stop threatening': China warns after US slaps Beijing with whopping 245% tariffs</a><a href="https://www.wionews.com/world/stop-threatening-china-warns-after-us-slaps-beijing-with-whopping-245-tariffs-donald-trump-trade-war-imports-8968395" target="_blank" rel="noopener">&nbsp;</a>
The economic disruption unleashed by Trump tariffs is likely to lead to a global growth loss of 0.6 percentage points. World GDP is now expected to grow at 2.2% instead of the baseline 2.8% in 2025, the WTO said.
&ldquo;The disruption in US-China trade is expected to trigger significant trade diversion, raising concerns among third markets about increased competition from China,&rdquo; the WTO outlook added. &ldquo;Unprecedented nature of the recent shift in trade policy poses a challenge for economic forecasters since there has been no directly comparable event in recent history,&rdquo; the report said.
The ramifications are likely to be far and wide. 2024 was the first year since 2017 (excluding the pandemic rebound) when global trade (2.9%) grew at a faster rate than global GDP (2.8%). Now, global trade will shrink by 0.2% in 2025, and the world will grow slower at 2.2%. WATCH |&nbsp;<a href="https://www.wionews.com/videos/chinas-gdp-growth-defies-expectations-tariff-risks-loom-8967252" target="_blank" rel="noopener">China's GDP growth defies expectations, tariff risks loom</a>
The trade forecasts released by the WTO are deemed highly tentative given the volatile situation.
&ldquo;If realized, reciprocal tariffs would reduce global merchandise trade volume growth by 0.6 percentage points in 2025 while spreading trade policy uncertainty could shave off another 0.8 percentage points. Together, they would lead to a 1.5% decline in world merchandise trade in 2025,&rdquo; the report says.
However, not everyone will suffer the same disruption because of Trump&rsquo;s tariffs. The WTO expects North America to be the biggest negative drag (1.7 percentage points), while Asia&rsquo;s contribution to global trade growth is expected to halve to 0.6 percentage points. Services trade will also be hurt. The WTO now sees commercial services growing by 4% this year, compared to 6.8% last year.
Also read:&nbsp;<a href="https://www.wionews.com/world/china-opens-to-talks-with-us-amid-tariff-war-wants-trump-admin-to-show-respect-8968109" target="_blank" rel="noopener">China opens to talks with US amid tariff war, wants Trump admin to show respect</a>
The global trade realignment could open up some opportunities for Less Developed Countries to substitute some of China&rsquo;s exports to the US, but they will also have to deal with a surge of Chinese imports. China is expected to face a 77% fall in its exports to the US because of Trump tariffs.
&ldquo;There is a risk that the tit-for-tat tariff increases between the two biggest economies of the world could spread. The economic costs of a split into two blocs would be substantial,&rdquo; it said.

Business & Economy | World: The Geneva-based WTO further warns that if Trump lifts the pause on his earlier announced reciprocal tariffs, it would amplify the problems, and the global trade contraction could be even much bigger.

The World Trade Organization has slashed its forecast for global trade this year amid the turbulence over the sharp spike in US tariffs and consequent uncertainty that has battered market sentiments and stock indices. The latest Global Trade Outlook released by the World Trade Organization on April 16 says US President Donald Trump’s tariffs will force a 0.2% contraction by volume in global trade in 2025, instead of the 2.7% growth that was projected otherwise. The Geneva-based WTO further warns that if Trump lifts the pause on his earlier announced reciprocal tariffs, it would amplify the problems, and the contraction could be even much bigger. “Together, reciprocal tariffs and spreading trade policy uncertainty would lead to a 1.5% decline in world merchandise trade in 2025,” the WTO said in its report Wednesday. North American trade will be hardest hit, while Asia and Europe will see a modest rise in growth, it added. Also read | 'Stop threatening': China warns after US slaps Beijing with whopping 245% tariffs The economic disruption unleashed by Trump tariffs is likely to lead to a global growth loss of 0.6 percentage points. World GDP is now expected to grow at 2.2% instead of the baseline 2.8% in 2025, the WTO said. “The disruption in US-China trade is expected to trigger significant trade diversion, raising concerns among third markets about increased competition from China,” the WTO outlook added. “Unprecedented nature of the recent shift in trade policy poses a challenge for economic forecasters since there has been no directly comparable event in recent history,” the report said. The ramifications are likely to be far and wide. 2024 was the first year since 2017 (excluding the pandemic rebound) when global trade (2.9%) grew at a faster rate than global GDP (2.8%). Now, global trade will shrink by 0.2% in 2025, and the world will grow slower at 2.2%. WATCH | China's GDP growth defies expectations, tariff risks loom The trade forecasts released by the WTO are deemed highly tentative given the volatile situation. “If realized, reciprocal tariffs would reduce global merchandise trade volume growth by 0.6 percentage points in 2025 while spreading trade policy uncertainty could shave off another 0.8 percentage points. Together, they would lead to a 1.5% decline in world merchandise trade in 2025,” the report says. However, not everyone will suffer the same disruption because of Trump’s tariffs. The WTO expects North America to be the biggest negative drag (1.7 percentage points), while Asia’s contribution to global trade growth is expected to halve to 0.6 percentage points. Services trade will also be hurt. The WTO now sees commercial services growing by 4% this year, compared to 6.8% last year. Also read: China opens to talks with US amid tariff war, wants Trump admin to show respect The global trade realignment could open up some opportunities for Less Developed Countries to substitute some of China’s exports to the US, but they will also have to deal with a surge of Chinese imports. China is expected to face a 77% fall in its exports to the US because of Trump tariffs. “There is a risk that the tit-for-tat tariff increases between the two biggest economies of the world could spread. The economic costs of a split into two blocs would be substantial,” it said.

Trump tariffs: WTO warns of economic turbulence ahead, slashes global trade forecast figures

Trump tariff war stock market fall and reaction updates: From Asia to Europe and the US itself, President Donald Trump's reciprocal tariffs are causing market turmoils. Monday was the first day of the full week since his 'Liberation Day' announcement of reciprocal tariffs on April 2. And if the current trends continue for a few more days, the much-feared global economic recession triggered by the tariff war may have already been triggered.
&ldquo;I don&rsquo;t want anything to go down but, sometimes, you have to take medicine to fix something,&rdquo; Trump said on board Air Force One on Sunday (Apr 6). But that medicine seems to be a bit too bitter for the markets, with even the US overnight futures trade showing a downward trend. Elsewhere, some of the stock selloff are so bad they are hitting new records.
<a href="https://www.wionews.com/autonews/eu-seeks-unified-response-to-trump-tariffs-targeting-usd-28-billion-in-us-imports-8934284">EU seeks unified response to Trump tariffs, targeting USD 28 billion in US imports</a>
&nbsp;
Here is a roundup of how various markets are reacting, at the time of writing.
<h2>India among markets hit by Trump tariff war </h2>
Indian stock market opened sharply lower on Monday. Sensex, the benchmark index of BSE crashed over 3,300 points, while NSE's Nifty went below 22,000. Various sectoral indices slumped by up to 8 per cent.
<a href="https://www.wionews.com/opinions/opinion-why-trumps-tariffs-are-scaring-the-world-like-1987-8934335">Opinion: Why Trump&rsquo;s tariffs are scaring the world like 1987</a>
Asian markets saw freefall, some going down by records.&nbsp;
In Hong Kong, the Hang Seng went down more than 13 per cent in the worst fall of nearly 30 years.
Taiwan's benchmark TAIEX saw worst fall on record, down 9.7 per cent.
<iframe width="600" height="auto" style="width: 100%; aspect-ratio: 4/3;" allowfullscreen="allowfullscreen" class="external-video publive-iframes-block" src="https://cdn.thepublive.com/wion/static/kaltura_player/wion_video_player_iframe.html?thumbnail=wion/media/post_attachments/screenshot/0504_SUMIT_TRADE_7PM/00000002.jpg&amp;videourl=https://vodakm.zeenews.com/vod/WION/0504_SUMIT_TRADE_7PM.mp4/index.m3u8&amp;duration=545&amp;tags=trump, tariff, reciprocal tariffs, usa, world news" title="Trump's midnight tariffs spark global reaction and warning" id="PL_iframe_block-m96xzwcd-ied57p3p-bwdr9je7"></iframe>
In Japan, Nikkei was down 225 points or 7.83 per cent at closing.
Singapore's Straits Times Index fell more than 7 per cent.
In South Korea, the KOSPI was down by more than 5 per cent.
Australia's ASX 200 ended down more than 4 per cent.
<h2>European indices extend losses on 'black Monday' opening</h2>
&nbsp; European stock markets went on freefall at opening on Monday. DAX index in&nbsp;Frankfurt was the worst, going down by 10 per cent.&nbsp;
Paris was down by more than 6 per cent. London stock exchange's FTSE 100 index&nbsp;opened down by 6 per cent.&nbsp;
Amsterdam down more than 5 percent while Oslo and Milan fell over 3 per cent each at opening.
<h2>American markets feel the pressure</h2>
In the US, two days of selloff last week destroyed $6 trillion in market value.
Monday is not going to be any different, going by the futures trade.
S&amp;P500 Futures down 2.7 per cent on Sunday.&nbsp;Nasdaq-100 futures down 3.55 percent on Sunday.
<h2>China sets up trade war, other countries adopt 'fight or flight' response</h2>
China imposed a 34 per cent tariff on all US imports in a tit-for-tat response to the 34 per cent tariff by Trump. China also slapped import restrictions on critical minerals. The&nbsp;Chinese levies, which will be imposed from April 10, seek&nbsp; to bring the US 'back on to the right track of the multilateral trade system," said Vice Commerce Minister Ling Ji.&nbsp;
&nbsp;
<a href="https://www.wionews.com/world/equities-savaged-as-china-retaliation-to-trump-tariffs-fans-trade-war-8933554">Equities savaged as China retaliation to Trump tariffs fans trade war</a>
European Union will charge higher duties on a list of US imports that it is preparing.
Israel Prime Minister Netanyahu will discuss tariffs with Trump an in-person meeting, while Japanese Prime Minister Shigeru Ishiba&nbsp;is expected to dial him up tonight.
The European Union, Japan and South Korea have been slapped with tariffs ranging from 20 per cent to 25 percent.
<h2>US recession 'in 12 months'?</h2>
Analysts are predicting a Trump-induced recession in another 12 months. JPMorgan said US recession chances have risen to 60 per cent, while S&amp;P Global put the risk at 30 - 35 per cent.
&nbsp;
<a href="https://www.wionews.com/world/china-on-tariffs-us-seeking-hegemony-in-the-name-of-reciprocity-in-trade-war-8934616">China on tariffs: 'US seeking hegemony in the name of reciprocity in trade war'</a> 
Lawrence Summers, the former treasury secretary of President Bill Clinton described Trump tariffs as&nbsp; probably 'the most damaging economic policy' of the US since World War II.
(With inputs from agencies)
&nbsp;

Trump tariff medicine reaction: Even the US overnight futures trade seeing downward trend. Asian stock selloff are hitting new records. World Business & Economy

Trump tariff war stock market fall and reaction updates: From Asia to Europe and the US itself, President Donald Trump's reciprocal tariffs are causing market turmoils. Monday was the first day of the full week since his 'Liberation Day' announcement of reciprocal tariffs on April 2. And if the current trends continue for a few more days, the much-feared global economic recession triggered by the tariff war may have already been triggered. “I don’t want anything to go down but, sometimes, you have to take medicine to fix something,” Trump said on board Air Force One on Sunday (Apr 6). But that medicine seems to be a bit too bitter for the markets, with even the US overnight futures trade showing a downward trend. Elsewhere, some of the stock selloff are so bad they are hitting new records. EU seeks unified response to Trump tariffs, targeting USD 28 billion in US imports Here is a roundup of how various markets are reacting, at the time of writing. India among markets hit by Trump tariff war Indian stock market opened sharply lower on Monday. Sensex, the benchmark index of BSE crashed over 3,300 points, while NSE's Nifty went below 22,000. Various sectoral indices slumped by up to 8 per cent. Opinion: Why Trump’s tariffs are scaring the world like 1987 Asian markets saw freefall, some going down by records. In Hong Kong, the Hang Seng went down more than 13 per cent in the worst fall of nearly 30 years. Taiwan's benchmark TAIEX saw worst fall on record, down 9.7 per cent. In Japan, Nikkei was down 225 points or 7.83 per cent at closing. Singapore's Straits Times Index fell more than 7 per cent. In South Korea, the KOSPI was down by more than 5 per cent. Australia's ASX 200 ended down more than 4 per cent. European indices extend losses on 'black Monday' opening European stock markets went on freefall at opening on Monday. DAX index in Frankfurt was the worst, going down by 10 per cent. Paris was down by more than 6 per cent. London stock exchange's FTSE 100 index opened down by 6 per cent. Amsterdam down more than 5 percent while Oslo and Milan fell over 3 per cent each at opening. American markets feel the pressure In the US, two days of selloff last week destroyed $6 trillion in market value. Monday is not going to be any different, going by the futures trade. S&P500 Futures down 2.7 per cent on Sunday. Nasdaq-100 futures down 3.55 percent on Sunday. China sets up trade war, other countries adopt 'fight or flight' response China imposed a 34 per cent tariff on all US imports in a tit-for-tat response to the 34 per cent tariff by Trump. China also slapped import restrictions on critical minerals. The Chinese levies, which will be imposed from April 10, seek to bring the US 'back on to the right track of the multilateral trade system," said Vice Commerce Minister Ling Ji. Equities savaged as China retaliation to Trump tariffs fans trade war European Union will charge higher duties on a list of US imports that it is preparing. Israel Prime Minister Netanyahu will discuss tariffs with Trump an in-person meeting, while Japanese Prime Minister Shigeru Ishiba is expected to dial him up tonight. The European Union, Japan and South Korea have been slapped with tariffs ranging from 20 per cent to 25 percent. US recession 'in 12 months'? Analysts are predicting a Trump-induced recession in another 12 months. JPMorgan said US recession chances have risen to 60 per cent, while S&P Global put the risk at 30 - 35 per cent. China on tariffs: 'US seeking hegemony in the name of reciprocity in trade war' Lawrence Summers, the former treasury secretary of President Bill Clinton described Trump tariffs as probably 'the most damaging economic policy' of the US since World War II. (With inputs from agencies)

Blood on the trading floor: Trump tariff 'medicine' makes global markets sick with selloff fever

More than 50 countries have approached the White House to start trade negotiations, according to a top adviser to US President <a href="https://www.wionews.com/donald-trump" rel="dofollow noopener" target="_blank">Donald Trump</a>. The announcement comes as the global economy faces mounting pressure following Trump&rsquo;s sweeping new tariffs.
Speaking on ABC News' This Week, Kevin Hassett, Director of the National Economic Council, pushed back against claims that the tariffs were part of a larger plan to trigger market chaos and influence the US Federal Reserve.
"I got a report from the USTR last night (the office of the US trade representative) that more than 50 countries have reached out to the president to begin a negotiation. But they are doing that because they understand that they bear a lot of the tariff," Hassett said.&nbsp;
Also read: <a href="https://www.wionews.com/world/donald-trump-reciprocal-tariff-us-economy-8932374" rel="dofollow noopener" target="_blank">'Makes no economic sense': Trump&rsquo;s tariff math is 'based on an error' and it could cost the US economy dearly - Here's how</a>
"And so I don&rsquo;t think you will see a big effect on the consumer in the US because I do think that the reason why we have a persistent, long run trade deficit is these people have very inelastic supply," he added.
<h2>Who all has reached out to Trump?</h2>
Meanwhile, Indonesia and Taiwan said on Sunday they won&rsquo;t impose retaliatory tariffs while Israeli Prime Minister Benjamin Netanyahu is heading to Washington to meet Trump to try to get the president to lower his tariffs.
As per media reports, Vietnam requested a delay of &ldquo;at least 45 days&rdquo; to tariffs due to be imposed on Wednesday. India also does not plan to impose retaliatory tariffs and is negotiating with the Trump team, as per reports.
Also read: <a href="https://www.wionews.com/world/china-ai-donald-trump-us-treasury-secretary-scott-bessent-deepseek-us-stock-market-reciprocal-tariffs-8930105" rel="dofollow noopener" target="_blank">&lsquo;Blame China&rsquo;s AI, not Trump&rsquo;: US Treasury Secretary claims DeepSeek responsible for tanking stock market,&nbsp;not&nbsp;tariffs</a>
<h2>&ldquo;No political coercion,&rdquo; Hassett insists</h2>
Hassett firmly denied that Trump&rsquo;s recent trade measures were designed to crash markets and pressure the Fed into cutting interest rates. "There would be no political coercion of the central bank," he said.
In a separate interview, Treasury Secretary Scott Bessent said that he sees "no reason" to expect a recession as a result of Trump's tariffs.
&ldquo;I think we could see from the jobs number on Friday that was well above expectations that we are moving forward," he said in an interview with NBC.
He also played down the recent stock market dip after the tariffs announcement, calling it a "short-term" reaction.
"This is an adjustment process," he said.&nbsp;"What we saw with President Reagan, when he brought down the great inflation and we got past the Carter malaise, that there was some choppiness at that time, but he held the course, and we're going to hold the course," he added.
Also read: <a href="https://www.wionews.com/world/vietnam-first-to-fall-in-face-off-trump-tariffs-will-other-countries-follow-8926949">Vietnam first to fall in face of Trump tariffs. Will other countries follow?</a>
(With inputs from agencies)

World: Hassett firmly denied that Trump’s recent trade measures were designed to crash markets and pressure the Fed into cutting interest rates. "There would be no political coercion of the central bank," he said.

More than 50 countries have approached the White House to start trade negotiations, according to a top adviser to US President Donald Trump. The announcement comes as the global economy faces mounting pressure following Trump’s sweeping new tariffs. Speaking on ABC News' This Week, Kevin Hassett, Director of the National Economic Council, pushed back against claims that the tariffs were part of a larger plan to trigger market chaos and influence the US Federal Reserve. "I got a report from the USTR last night (the office of the US trade representative) that more than 50 countries have reached out to the president to begin a negotiation. But they are doing that because they understand that they bear a lot of the tariff," Hassett said. Also read: 'Makes no economic sense': Trump’s tariff math is 'based on an error' and it could cost the US economy dearly - Here's how "And so I don’t think you will see a big effect on the consumer in the US because I do think that the reason why we have a persistent, long run trade deficit is these people have very inelastic supply," he added. Who all has reached out to Trump? Meanwhile, Indonesia and Taiwan said on Sunday they won’t impose retaliatory tariffs while Israeli Prime Minister Benjamin Netanyahu is heading to Washington to meet Trump to try to get the president to lower his tariffs. As per media reports, Vietnam requested a delay of “at least 45 days” to tariffs due to be imposed on Wednesday. India also does not plan to impose retaliatory tariffs and is negotiating with the Trump team, as per reports. Also read: ‘Blame China’s AI, not Trump’: US Treasury Secretary claims DeepSeek responsible for tanking stock market, not tariffs “No political coercion,” Hassett insists Hassett firmly denied that Trump’s recent trade measures were designed to crash markets and pressure the Fed into cutting interest rates. "There would be no political coercion of the central bank," he said. In a separate interview, Treasury Secretary Scott Bessent said that he sees "no reason" to expect a recession as a result of Trump's tariffs. “I think we could see from the jobs number on Friday that was well above expectations that we are moving forward," he said in an interview with NBC. He also played down the recent stock market dip after the tariffs announcement, calling it a "short-term" reaction. "This is an adjustment process," he said. "What we saw with President Reagan, when he brought down the great inflation and we got past the Carter malaise, that there was some choppiness at that time, but he held the course, and we're going to hold the course," he added. Also read: Vietnam first to fall in face of Trump tariffs. Will other countries follow? (With inputs from agencies)

Falling in line after Trump’s tariffs? Over 50 countries rush to negotiate with US - Who are they?

US President <a href="https://www.wionews.com/donald-trump" rel="dofollow noopener" target="_blank">Donald Trump</a> announced on Thursday (April 03) morning that his sweeping tariffs against nearly every country were now in force, declaring&nbsp;that "the operation is over!" But the US financial markets did not share his optimism, with stock futures plunging.
<h2>Trump claims the US economy will emerge stronger</h2>
Taking to Truth Social, Trump posted in all caps, "THE PROGNOSIS IS THAT THE PATIENT WILL BE FAR STRONGER, BIGGER, BETTER, AND MORE RESILIENT THAN EVER BEFORE. MAKE AMERICA GREAT AGAIN!!!"
Despite his confidence, the S&amp;P 500 stock futures dropped by over 3.5%, and the Dow Jones was set to open nearly 1,300 points lower.
<h2>Tariffs hit nearly every US trading partner</h2>
As part of his so-called "<a href="https://www.wionews.com/world/want-to-avoid-trumps-reciprocal-tariffs-trump-himself-has-a-simple-solution-for-world-leaders-8919111">Liberation Day</a>" on Wednesday, Trump introduced a baseline 10% tariff on all imports, with higher customised rates for specific countries. The only exceptions were nations already under sanctions and those previously hit with tariffs.
Speaking from the White House Rose Garden, Trump argued that the US had long been subject to unfair trade practices, claiming that America had been &ldquo;looted, pillaged, raped, and plundered&rdquo; by foreign nations. He insisted that his tariffs would restore American industry, ushering in a "<a href="https://www.wionews.com/world/donald-trump-to-sign-executive-order-on-reciprocal-tariffs-to-usher-in-golden-age-of-america-8919067">golden age of America</a>."
<h2>Some tariffs go as high as 50%</h2>
Under the new rules:
<ul>
<li>A 10% tax applies to all imported goods</li>
<li>Some nations face tariffs as high as 50%</li>
<li>Canada and Mexico remain exempt (as they have already been subject to 25% tariffs since Trump's return to office)</li>
</ul>
Also read: <a href="https://www.wionews.com/world/trumps-new-tariffs-hit-ukraine-but-not-russia-heres-why-8921422">Trump&rsquo;s new tariffs hit Ukraine, penguins, and almost every country, but not Russia. Here&rsquo;s why</a>
Trump has justified these tariffs as a means to boost American manufacturing and make global trade "fairer." But the move has caused chaos worldwide, with multiple nations threatening retaliation and urging the US to return to the negotiating table.
(With inputs from agencies)

Taking to Truth Social, Trump posted in all caps, "THE PROGNOSIS IS THAT THE PATIENT WILL BE FAR STRONGER, BIGGER, BETTER, AND MORE RESILIENT THAN EVER BEFORE. MAKE AMERICA GREAT AGAIN!!!" World

US President Donald Trump announced on Thursday (April 03) morning that his sweeping tariffs against nearly every country were now in force, declaring that "the operation is over!" But the US financial markets did not share his optimism, with stock futures plunging. Trump claims the US economy will emerge stronger Taking to Truth Social, Trump posted in all caps, "THE PROGNOSIS IS THAT THE PATIENT WILL BE FAR STRONGER, BIGGER, BETTER, AND MORE RESILIENT THAN EVER BEFORE. MAKE AMERICA GREAT AGAIN!!!" Despite his confidence, the S&P 500 stock futures dropped by over 3.5%, and the Dow Jones was set to open nearly 1,300 points lower. Tariffs hit nearly every US trading partner As part of his so-called "Liberation Day" on Wednesday, Trump introduced a baseline 10% tariff on all imports, with higher customised rates for specific countries. The only exceptions were nations already under sanctions and those previously hit with tariffs. Speaking from the White House Rose Garden, Trump argued that the US had long been subject to unfair trade practices, claiming that America had been “looted, pillaged, raped, and plundered” by foreign nations. He insisted that his tariffs would restore American industry, ushering in a "golden age of America." Some tariffs go as high as 50% Under the new rules: A 10% tax applies to all imported goods Some nations face tariffs as high as 50% Canada and Mexico remain exempt (as they have already been subject to 25% tariffs since Trump's return to office) Also read: Trump’s new tariffs hit Ukraine, penguins, and almost every country, but not Russia. Here’s why Trump has justified these tariffs as a means to boost American manufacturing and make global trade "fairer." But the move has caused chaos worldwide, with multiple nations threatening retaliation and urging the US to return to the negotiating table. (With inputs from agencies)

Trump declares ‘OPERATION IS OVER’ as tariffs hit nearly every country; claims ‘PATIENT IS HEALING’ while stocks plunge

Donald Trump took the stage to loud cheers as the Marine band played Hail to the Chief and declared, &ldquo;My fellow Americans, this is Liberation Day!&rdquo;
He said, &ldquo;April 2, 2025, will forever be remembered as the day American industry was reborn.&rdquo; According to him, the US has been &ldquo;looted, pillaged, raped, and plundered by nations near and far&rdquo; for decades.
Trump announced that he would be signing a new executive order introducing reciprocal tariffs on countries around the world. &ldquo;Reciprocal, that means they do it to us and we do it to them,&rdquo; he said. But, Trump is not all bad, because he did reveal how nations can save themselves from Trump's reciprocal tariffs.
Also read:&nbsp;<a href="https://www.wionews.com/world/donald-trump-to-sign-executive-order-on-reciprocal-tariffs-to-usher-in-golden-age-of-america-8919067">'US has been looted, raped': Trump to sign executive order on 'reciprocal tariffs' to usher in 'golden&nbsp;age&nbsp;of&nbsp;America'</a>
<h2>How can countries avoid reciprocal tariffs?</h2>
Trump made it clear that other nations could avoid the tariffs by simply lowering their own trade barriers first.
&ldquo;If they complain, if you want your tariff rate to be zero, then you build your product right here in America,&rdquo; he said. &ldquo;There is no tariff if you build your plant, your product in America. And we&rsquo;ve seen companies coming in like we&rsquo;ve never seen before,&rdquo; he added.
Also read: <a href="https://www.wionews.com/world/trump-announces-26-discounted-tariffs-on-india-says-pm-modi-is-a-friend-but-he-hasnt-been-treating-us-right-8919110">Trump announces 26% 'discounted' tariffs on India, says 'PM Modi is a friend, but he hasn't been treating us right'</a>
<h2>Why does Trump say tariffs are necessary?</h2>
According to Trump, these tariffs will protect the U.S. economy from foreign countries that have been taking advantage of American trade policies. &ldquo;Tariffs give our country protection against those that would do U.S. economic harm,&rdquo; he said. &ldquo;Maybe not so obviously, but they were doing tremendous economic harm,&rdquo; he added.
He also claimed that the tariffs would help the economy grow. &ldquo;These tariffs are going to give us growth like you haven&rsquo;t seen before,&rdquo; he said.
Also read: <a href="https://www.wionews.com/world/trump-tariff-threat-tariffs-are-effective-tool-in-achieving-economic-objectives-stresses-white-house-8919030">Trump tariff threat: 'Tariffs are effective tool in achieving economic objectives', stresses White House</a>
(With inputs from agencies)

Trump announced that he would be signing a new executive order introducing reciprocal tariffs on countries around the world. “Reciprocal, that means they do it to us and we do it to them,” he said. World

Donald Trump took the stage to loud cheers as the Marine band played Hail to the Chief and declared, “My fellow Americans, this is Liberation Day!” He said, “April 2, 2025, will forever be remembered as the day American industry was reborn.” According to him, the US has been “looted, pillaged, raped, and plundered by nations near and far” for decades. Trump announced that he would be signing a new executive order introducing reciprocal tariffs on countries around the world. “Reciprocal, that means they do it to us and we do it to them,” he said. But, Trump is not all bad, because he did reveal how nations can save themselves from Trump's reciprocal tariffs. Also read: 'US has been looted, raped': Trump to sign executive order on 'reciprocal tariffs' to usher in 'golden age of America' How can countries avoid reciprocal tariffs? Trump made it clear that other nations could avoid the tariffs by simply lowering their own trade barriers first. “If they complain, if you want your tariff rate to be zero, then you build your product right here in America,” he said. “There is no tariff if you build your plant, your product in America. And we’ve seen companies coming in like we’ve never seen before,” he added. Also read: Trump announces 26% 'discounted' tariffs on India, says 'PM Modi is a friend, but he hasn't been treating us right' Why does Trump say tariffs are necessary? According to Trump, these tariffs will protect the U.S. economy from foreign countries that have been taking advantage of American trade policies. “Tariffs give our country protection against those that would do U.S. economic harm,” he said. “Maybe not so obviously, but they were doing tremendous economic harm,” he added. He also claimed that the tariffs would help the economy grow. “These tariffs are going to give us growth like you haven’t seen before,” he said. Also read: Trump tariff threat: 'Tariffs are effective tool in achieving economic objectives', stresses White House (With inputs from agencies)

Want to avoid Trump’s reciprocal tariffs? Trump himself has a ‘simple’ solution for world leaders

Trump tariffs impact for India : US reciprocal tariffs against countries being dubbed as 'Dirty 15' will kick off as threatened by President Donald Trump on April 2, which he described as 'Liberation Day' for the American economy. India is among the 'Dirty 15' countries, coming at ninth when it comes to trade surplus with the US. Amid frenzied efforts by New Delhi officials to get exemptions or negotiate a way out, one wonders what the options are for India.
The trade gap between the US and India is 45.7 billion US dollars in India's favour, as per US trade department figures. This places India ninth among the 'Dirty 15, which is led by China that has a whopping 295 billion dollar trade surplus with the US.
<h2><iframe width="600" height="auto" style="width: 100%; aspect-ratio: 4/3;" allowfullscreen="allowfullscreen" class="external-video publive-iframes-block" src="https://cdn.thepublive.com/wion/static/kaltura_player/wion_video_player_iframe.html?thumbnail=wion/media/post_attachments/screenshot/2703_TRUMP_730AM/00000002.jpg&amp;videourl=https://vodakm.zeenews.com/vod/WION/2703_TRUMP_730AM.mp4/index.m3u8&amp;duration=188&amp;tags=trump, usa, wion" title="Donald Trump announces 25% tariffs on imported cars, car parts" id="PL_iframe_block-m8rb6n3b-p5k97qkr-20cokpyz"></iframe></h2>
<h2>US, India negotiating a way out of tariff war</h2>
Citing government officials, Indian media is reporting that India might get some reprieve, as opposed to China, Mexico, and Canada, on Trump's reciprocal tariffs.
<a href="https://www.wionews.com/world/canada-prime-minister-mark-carney-dubs-us-auto-tariffs-direct-attack-8894738">Canada PM Mark Carney calls Trump's new 25% tariffs on car imports to US 'direct attack'</a>
US Trade Representative Jamieson Greer&rsquo;s deputy for South and Central Asia is in India from March 25 for a five-day visit. Brendan Lynch, the assistant trade representative, is reportedly discussing market access to US agricultural products, a sector closely guarded by India.
A more nuanced, sector-based approach is being explored. Also, the reciprocal tariffs for India might kick in in a phased manner, with lower tariffs on items that are in high demand and high volume.
<h2>What are the trade agreements India is negotiating with other countries?</h2>
Amid the threat of major headwinds for global economy due to the Trump reciprocal tariffs, India is cementing its trade ties with other nations.
External Affairs Minister S Jaishankar has said that India and Russia have set an ambitious target of increasing bilateral trade of $100 bn.
<a href="https://www.wionews.com/autonews/canada-halts-tesla-rebates-bans-company-from-future-programs-amid-tariff-dispute-8892657">Canada halts Tesla rebates, bans company from future programs amid tariff dispute</a>
India has been negotiating free trade agreements with a number of other countries and regions. Key among them are the long-standing FTA talks with the European Union. The talks, which had been stalled for more than a decade, were relaunched in 2021. The 10th round began on March 10 this year, at a time when the EU was facing the headwinds of the Trump effect.
<a href="https://www.wionews.com/autonews/eu-trade-chief-seeks-to-avert-us-tariffs-in-talks-with-trump-officials-8892583">EU Trade Chief seeks to avert US tariffs in talks with Trump officials</a>
The United Kingdom, since its exit from EU known as Brexit, has been keen to have a trade deal with India. India-UK FTA negotiations resumed in early 2025 after 14 rounds.
With New Zealand, India restarted FTA talks in March, targeting a 60-day conclusion.
<a href="https://www.wionews.com/world/us-names-india-china-as-top-actors-in-fentanyl-trafficking-supply-chain-8893650">US intel names India, China as 'state-actors' in fentanyl trafficking amid Trump's trade war</a>
Trade talks are ongoing with nations like Peru, in whose case the sixth round was held in February 2024.
India is also negotiating trade deals with the Gulf Cooperation Council (GCC) and Eurasian Economic Union (EAEU). With Oman, talks are progressing on a Comprehensive Economic Partnership Agreement or CEPA.
(With inputs from agencies)
&nbsp;
&nbsp;

India World Business & Economy US reciprocal tariffs against countries being dubbed as 'Dirty 15' will kick off as threatened by President Donald Trump on April 2, which he described as Liberation Day.

Trump tariffs impact for India : US reciprocal tariffs against countries being dubbed as 'Dirty 15' will kick off as threatened by President Donald Trump on April 2, which he described as 'Liberation Day' for the American economy. India is among the 'Dirty 15' countries, coming at ninth when it comes to trade surplus with the US. Amid frenzied efforts by New Delhi officials to get exemptions or negotiate a way out, one wonders what the options are for India. The trade gap between the US and India is 45.7 billion US dollars in India's favour, as per US trade department figures. This places India ninth among the 'Dirty 15, which is led by China that has a whopping 295 billion dollar trade surplus with the US. US, India negotiating a way out of tariff war Citing government officials, Indian media is reporting that India might get some reprieve, as opposed to China, Mexico, and Canada, on Trump's reciprocal tariffs. Canada PM Mark Carney calls Trump's new 25% tariffs on car imports to US 'direct attack' US Trade Representative Jamieson Greer’s deputy for South and Central Asia is in India from March 25 for a five-day visit. Brendan Lynch, the assistant trade representative, is reportedly discussing market access to US agricultural products, a sector closely guarded by India. A more nuanced, sector-based approach is being explored. Also, the reciprocal tariffs for India might kick in in a phased manner, with lower tariffs on items that are in high demand and high volume. What are the trade agreements India is negotiating with other countries? Amid the threat of major headwinds for global economy due to the Trump reciprocal tariffs, India is cementing its trade ties with other nations. External Affairs Minister S Jaishankar has said that India and Russia have set an ambitious target of increasing bilateral trade of $100 bn. Canada halts Tesla rebates, bans company from future programs amid tariff dispute India has been negotiating free trade agreements with a number of other countries and regions. Key among them are the long-standing FTA talks with the European Union. The talks, which had been stalled for more than a decade, were relaunched in 2021. The 10th round began on March 10 this year, at a time when the EU was facing the headwinds of the Trump effect. EU Trade Chief seeks to avert US tariffs in talks with Trump officials The United Kingdom, since its exit from EU known as Brexit, has been keen to have a trade deal with India. India-UK FTA negotiations resumed in early 2025 after 14 rounds. With New Zealand, India restarted FTA talks in March, targeting a 60-day conclusion. US intel names India, China as 'state-actors' in fentanyl trafficking amid Trump's trade war Trade talks are ongoing with nations like Peru, in whose case the sixth round was held in February 2024. India is also negotiating trade deals with the Gulf Cooperation Council (GCC) and Eurasian Economic Union (EAEU). With Oman, talks are progressing on a Comprehensive Economic Partnership Agreement or CEPA. (With inputs from agencies)

Trump tariff war: India among 'dirty 15' countries to be hit. What other trade deals are options for New Delhi? See list

The European Union on Wednesday announced retaliatory tariffs on imports from the US after Donald Trump’s proposed 25% tariffs on all steel and aluminum imports went into effect.

EU announces retaliatory tariffs on US as Trump's metal duties goes into effect

Canada has announced fresh tariffs on American products worth $20.7 billion in response to US tariffs on Canadian steel and aluminum. The retaliatory measures, which come into effect on Thursday, target a range of goods, including computers and sports equipment.
Finance Minister Dominic Leblanc described the US tariffs as "unjustified and unreasonable," adding that Canada&rsquo;s retaliation was necessary to defend its industries. The move follows President Donald Trump&rsquo;s decision to impose a 25% duty on Canadian steel and aluminum exports.
Also read: <a href="https://www.wionews.com/world/trump-tariff-trump-trade-war-european-union-slaps-283b-in-tariffs-on-us-goods-after-trumps-metal-duties-8847083">&lsquo;Bad for business, worse for consumers&rsquo;: EU slaps tariffs on $28.3bn US goods after Trump&rsquo;s metal duties</a>
<h2>Ontario Premier meets Prime Minister-elect Mark Carney</h2>
Ontario Premier Doug Ford, a vocal advocate for Canada&rsquo;s response to Trump's tariffs, met with Prime Minister-elect Mark Carney to discuss the situation.
"This morning, I met with Mark Carney, Canada&rsquo;s incoming prime minister for a positive and productive discussion. We agreed on the need to stand firm and strong in the face of President Trump&rsquo;s threats, including additional retaliatory tariffs in response to U.S. tariffs on steel and aluminum, which will raise costs for American businesses and families," Ford said.
Also read: <a href="https://www.wionews.com/world/register-or-be-treated-as-criminal-900000-snowbird-canadians-face-new-us-travel-restrictions-amid-trade-war-8847588">Register or 'be treated as criminal': 900,000 'snowbird' Canadians face new US travel restrictions amid trade war</a>
He added, "Team Canada has risen to the challenge and proven that no one should ever underestimate the strength and resilience of the Canadian people. Together, we will get through this more united than ever before."
Ford also affirmed Canada&rsquo;s determination to resist US pressure. "Canada won&rsquo;t relent until the threat of tariffs is gone for good. I look forward to sitting down with U.S. Secretary of Commerce Howard Lutnick and members of the Trump administration&rsquo;s economic team tomorrow," he said.
<h2>Talks on trade and electricity exports</h2>
Ford said that Secretary Lutnick had reached out to discuss the future of the United States-Mexico-Canada Agreement (USMCA), particularly in light of Ontario&rsquo;s 25% surcharge on electricity exports to the US.
Also read: <a href="https://www.wionews.com/world/video-justin-trudeau-bursts-into-tears-during-press-briefing-says-he-put-canadians-first-amid-trade-war-with-trump-8835918">Video: Justin Trudeau bursts into tears at farewell address, says he 'put Canadians first' amid trade war with Trump</a>
"Facing the cost of Ontario&rsquo;s 25 per cent surcharge on electricity exports, Secretary Lutnick extended an olive branch to start a conversation about the future of the United States-Mexico-Canada Agreement. Over the coming weeks and months, I&rsquo;m going to work with Secretary Lutnick, our federal partners and every premier in good faith toward a free trade deal that&rsquo;s fair for both countries," Ford said.
Also read: <a href="https://www.wionews.com/south-asia/who-are-bla-everything-you-need-to-know-about-baloch-militant-group-that-hijacked-pakistani-train-8847668">Who are Baloch Liberation Army? Here's all you need to know about militant group that hijacked Pakistani train</a>
<h2>EU joins the fight with $28.3 billion tariffs</h2>
In a separate but related development, the European Union has announced new tariffs on $28.3 billion worth of US goods in retaliation for America&rsquo;s latest metal tariffs.
(With inputs from agencies)

World: Finance Minister Dominic Leblanc described the US tariffs as "unjustified and unreasonable," adding that Canada’s retaliation was necessary to defend its industries.

Canada has announced fresh tariffs on American products worth $20.7 billion in response to US tariffs on Canadian steel and aluminum. The retaliatory measures, which come into effect on Thursday, target a range of goods, including computers and sports equipment. Finance Minister Dominic Leblanc described the US tariffs as "unjustified and unreasonable," adding that Canada’s retaliation was necessary to defend its industries. The move follows President Donald Trump’s decision to impose a 25% duty on Canadian steel and aluminum exports. Also read: ‘Bad for business, worse for consumers’: EU slaps tariffs on $28.3bn US goods after Trump’s metal duties Ontario Premier meets Prime Minister-elect Mark Carney Ontario Premier Doug Ford, a vocal advocate for Canada’s response to Trump's tariffs, met with Prime Minister-elect Mark Carney to discuss the situation. "This morning, I met with Mark Carney, Canada’s incoming prime minister for a positive and productive discussion. We agreed on the need to stand firm and strong in the face of President Trump’s threats, including additional retaliatory tariffs in response to U.S. tariffs on steel and aluminum, which will raise costs for American businesses and families," Ford said. Also read: Register or 'be treated as criminal': 900,000 'snowbird' Canadians face new US travel restrictions amid trade war He added, "Team Canada has risen to the challenge and proven that no one should ever underestimate the strength and resilience of the Canadian people. Together, we will get through this more united than ever before." Ford also affirmed Canada’s determination to resist US pressure. "Canada won’t relent until the threat of tariffs is gone for good. I look forward to sitting down with U.S. Secretary of Commerce Howard Lutnick and members of the Trump administration’s economic team tomorrow," he said. Talks on trade and electricity exports Ford said that Secretary Lutnick had reached out to discuss the future of the United States-Mexico-Canada Agreement (USMCA), particularly in light of Ontario’s 25% surcharge on electricity exports to the US. Also read: Video: Justin Trudeau bursts into tears at farewell address, says he 'put Canadians first' amid trade war with Trump "Facing the cost of Ontario’s 25 per cent surcharge on electricity exports, Secretary Lutnick extended an olive branch to start a conversation about the future of the United States-Mexico-Canada Agreement. Over the coming weeks and months, I’m going to work with Secretary Lutnick, our federal partners and every premier in good faith toward a free trade deal that’s fair for both countries," Ford said. Also read: Who are Baloch Liberation Army? Here's all you need to know about militant group that hijacked Pakistani train EU joins the fight with $28.3 billion tariffs In a separate but related development, the European Union has announced new tariffs on $28.3 billion worth of US goods in retaliation for America’s latest metal tariffs. (With inputs from agencies)

‘Until threat is gone for good’: Canada hits US with $20.7bn tariffs over ‘unjustified’ steel levies

Ontario Premier Doug Ford, on Tuesday (Mar 11), lashed out at US President Donald Trump, placing the blame for a potential recession on the Republican leader's shoulders.
Ford stated that if a recession hits, "there's one person to be blamed, and that's President Donald Trump".
&ldquo;If we go into a recession, it will be called the Trump recession&rdquo; Ford said in an interview with CNBC.
This came hot on the heels of Trump's announcement to hike tariffs on Canadian steel and aluminum imports to 50 per cent.&nbsp;
<a href="https://www.wionews.com/world/trump-to-double-canada-steel-aluminum-tariff-rate-to-50-says-will-shortly-declare-national-emergency-on-electricity-8843915">Also read: Trump to double Canada steel, aluminum tariff to 50%, will shortly declare 'National Emergency on Electricity'</a>
<h2>'Will not hesitate to shut the electricity off completely'</h2>
Ford further said that he would not &ldquo;hesitate&rdquo; to completely shut the electricity off if Trump continues the trade war.
&ldquo;That&rsquo;s the last thing I want to do,&rdquo; Ford said.&nbsp;
&ldquo;I want to send more electricity down to the US, to our closest allies or our best neighbors in the world. I want to send more electricity. Is it a tool in our tool kit? One hundred percent, and as he continues to hurt Canadian families, Ontario families, I won&rsquo;t hesitate to do that. That&rsquo;s the last thing I want to do,&rdquo; he added.
Meanwhile, a senior government source said that Ottawa will "have to respond" in kind if Trump further hikes tariffs on Canadian imports, according to news agency AFP.
"As we've shown, we will of course have to respond to tariffs if they proceed," the official said.
<h2>Trump to double tariff on Canada steel, aluminum to 50%</h2>
Trump announced on Tuesday, (Mar 11), that he's doubling the tariff on all steel and aluminum imports from Canada, hiking it from 25 per cent to 50 per cent.
Calling Canada "one of the highest tariffing nations anywhere in the world," he said that the import duties will go into effect "tomorrow morning (Mar 12)".
"Based on Ontario, Canada, placing a 25% Tariff on &ldquo;Electricity&rdquo; coming into the United States, I have instructed my Secretary of Commerce to ad an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD. This will go into effect TOMORROW MORNING, March 12th," Trump wrote in a post on his Truth Social handle.
<iframe width="600" height="" style="max-width: 100%; border: 0;" src="https://truthsocial.com/@realDonaldTrump/114144217763824399/embed" class="truthsocial-embed" allowfullscreen="allowfullscreen"></iframe>
<script src="https://truthsocial.com/embed.js" async="async"></script>

<h2>Canada will pay 'financial price' for electricity surcharge</h2>
In another post, Trump issued a stern warning to Canada, stating that Ottawa will have to pay a "financial price" for the electricity surcharge.
"Why would our Country allow another Country to supply us with electricity, even for a small area? Who made these decisions, and why?" he said.
<iframe width="600" height="" style="max-width: 100%; border: 0;" src="https://truthsocial.com/@realDonaldTrump/114144501101999196/embed" class="truthsocial-embed" allowfullscreen="allowfullscreen"></iframe>
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He further asserted, "Canada stooping so low as to use ELECTRICITY, that so affects the life of innocent people, as a bargaining chip and threat?"
"They will pay a financial price for this so big that it will be read about in History Books for many years to come!," he added.
(With inputs from agencies)

World: Ontario Premier Doug Ford said that he would not “hesitate” to completely shut the electricity off if US President Donald Trump continues the trade war.

Ontario Premier Doug Ford, on Tuesday (Mar 11), lashed out at US President Donald Trump, placing the blame for a potential recession on the Republican leader's shoulders. Ford stated that if a recession hits, "there's one person to be blamed, and that's President Donald Trump". “If we go into a recession, it will be called the Trump recession” Ford said in an interview with CNBC. This came hot on the heels of Trump's announcement to hike tariffs on Canadian steel and aluminum imports to 50 per cent. Also read: Trump to double Canada steel, aluminum tariff to 50%, will shortly declare 'National Emergency on Electricity' 'Will not hesitate to shut the electricity off completely' Ford further said that he would not “hesitate” to completely shut the electricity off if Trump continues the trade war. “That’s the last thing I want to do,” Ford said. “I want to send more electricity down to the US, to our closest allies or our best neighbors in the world. I want to send more electricity. Is it a tool in our tool kit? One hundred percent, and as he continues to hurt Canadian families, Ontario families, I won’t hesitate to do that. That’s the last thing I want to do,” he added. Meanwhile, a senior government source said that Ottawa will "have to respond" in kind if Trump further hikes tariffs on Canadian imports, according to news agency AFP. "As we've shown, we will of course have to respond to tariffs if they proceed," the official said. Trump to double tariff on Canada steel, aluminum to 50% Trump announced on Tuesday, (Mar 11), that he's doubling the tariff on all steel and aluminum imports from Canada, hiking it from 25 per cent to 50 per cent. Calling Canada "one of the highest tariffing nations anywhere in the world," he said that the import duties will go into effect "tomorrow morning (Mar 12)". "Based on Ontario, Canada, placing a 25% Tariff on “Electricity” coming into the United States, I have instructed my Secretary of Commerce to ad an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD. This will go into effect TOMORROW MORNING, March 12th," Trump wrote in a post on his Truth Social handle. Canada will pay 'financial price' for electricity surcharge In another post, Trump issued a stern warning to Canada, stating that Ottawa will have to pay a "financial price" for the electricity surcharge. "Why would our Country allow another Country to supply us with electricity, even for a small area? Who made these decisions, and why?" he said. He further asserted, "Canada stooping so low as to use ELECTRICITY, that so affects the life of innocent people, as a bargaining chip and threat?" "They will pay a financial price for this so big that it will be read about in History Books for many years to come!," he added. (With inputs from agencies)

'Will shut off electricity completely': Ontario’s Doug Ford warns US after Trump doubles tariffs

Prominent yoga guru and co-founder of Patanjali, Baba Ramdev, strongly criticised US President Donald Trump on Sunday (Mar 9), stating that the Republican leader was promoting &ldquo;tariff terrorism&rdquo;.&nbsp;
He also accused Trump of bullying poor and developing nations through his push for reciprocal tariffs, which he said was unleashing a new &ldquo;era of intellectual colonisation&rdquo;.
"There is a new era of intellectual colonisation. Amid this, ever since Donald Trump rose to power, he created a new world record of 'tariff terrorism'. He has ripped off democracy by threatening poor and developing nations... This is 'economic terrorism'," Ramdev said.
"He is taking the world to a different era... In such a case, India needs to develop... All Indians should unite to build a strong nation and answer all these destructive powers," he added.
<blockquote class="twitter-tweet publive-iframes-block publive-Twitter-block" contenteditable="false" width="600" height="400" id="PL_blockquote_block-m81q9bd3-h394610s-kcm71khm">
<a href="https://twitter.com/hashtag/WATCH?src=hash&amp;ref_src=twsrc%5Etfw">#WATCH</a> | Nagpur, Maharashtra | On US President Donald Trump imposing reciprocal tariffs, Yog guru Baba Ramdev says, "There is a new era of intellectual colonization. Amid this, ever since Donald Trump rose to power, he created a new world record of 'tariff terrorism'. He has&hellip; <a href="https://t.co/aUgrVhm5pa">pic.twitter.com/aUgrVhm5pa</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/1898667777533341928?ref_src=twsrc%5Etfw">March 9, 2025</a></blockquote>
Ramdev also emphasised that India must accelerate its development in these turbulent times, as certain powerful nations want to push the world towards chaos and destruction.
<a href="https://www.wionews.com/world/trump-suspends-most-mexico-tariffs-until-april-2-8829006">Also read: 'Did this out of respect for Sheinbaum'; Trump suspends most Mexico tariffs until April 2</a>
<h2>&lsquo;Trump has made tariffs household name&rsquo;: Congress leader Jairam Ramesh</h2>
Congress general secretary Jairam Ramesh also said that Trump has made tariffs a household name across the world.
&ldquo;Till the mid-1910s tariffs were the main source of revenue for the US government. In 1913, the US Constitution was amended to introduce a federal income tax for the first time,&rdquo; Ramesh said in a post on X.
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President Trump has made tariffs a household name across the world. Till the mid-1910s tariffs were the main source of revenue for the US Govt. In 1913, the US Constitution was amended to introduce a federal income tax for the first time. One of the most influential economists&hellip;
&mdash; Jairam Ramesh (@Jairam_Ramesh) <a href="https://twitter.com/Jairam_Ramesh/status/1898603381499068458?ref_src=twsrc%5Etfw">March 9, 2025</a></blockquote>
&ldquo;One of the most influential economists who championed and campaigned for the federal income tax was Edwin Seligman, a Professor of Public Finance at Columbia University,&rdquo; he added.
<h2>Trump claims India agreed to reduce tariffs on US imports&nbsp;</h2>
Donald Trump recently claimed that India has agreed to significantly reduce tariffs on US goods after he slammed India for having high duties.
Following this, Ramesh questioned PM Modi as to what the Indian government had agreed to amidst Commerce Minister Piyush Goyal's visit to Washington.
"The Commerce Minister Piyush Goyal is in Washington DC to talk trade with the Americans. Meanwhile, President Trump says this. What has the Modi Government agreed to? Are the interests of Indian farmers and of Indian manufacturing being compromised? The PM must take Parliament into confidence when it resumes on March 10th," Ramesh wrote in a post on X.
<blockquote class="twitter-tweet publive-iframes-block publive-Twitter-block" contenteditable="false" width="600" height="400" id="PL_blockquote_block-m81qbpoy-27tewgza-eylr1djv">
The Commerce Minister Piyush Goyal is in Washington DC to talk trade with the Americans. Meanwhile President Trump says this. What has the Modi Government agreed to? Are the interests of Indian farmers and of Indian manufacturing being compromised? The PM must take Parliament&hellip; <a href="https://t.co/K625e8vGrM">pic.twitter.com/K625e8vGrM</a>
&mdash; Jairam Ramesh (@Jairam_Ramesh) <a href="https://twitter.com/Jairam_Ramesh/status/1898243555229155841?ref_src=twsrc%5Etfw">March 8, 2025</a></blockquote>
"'You tariff, I tariff', that is not the way international trade functions. These rules have been negotiated. The WTO is World Trade Organisation not World Trump Organisation," he said.
(With inputs from agencies)

India News: Ramdev emphasised that India must accelerate its development in these turbulent times, as certain powerful nations want to push the world towards chaos and destruction.

Prominent yoga guru and co-founder of Patanjali, Baba Ramdev, strongly criticised US President Donald Trump on Sunday (Mar 9), stating that the Republican leader was promoting “tariff terrorism”. He also accused Trump of bullying poor and developing nations through his push for reciprocal tariffs, which he said was unleashing a new “era of intellectual colonisation”. "There is a new era of intellectual colonisation. Amid this, ever since Donald Trump rose to power, he created a new world record of 'tariff terrorism'. He has ripped off democracy by threatening poor and developing nations... This is 'economic terrorism'," Ramdev said. "He is taking the world to a different era... In such a case, India needs to develop... All Indians should unite to build a strong nation and answer all these destructive powers," he added. #WATCH | Nagpur, Maharashtra | On US President Donald Trump imposing reciprocal tariffs, Yog guru Baba Ramdev says, "There is a new era of intellectual colonization. Amid this, ever since Donald Trump rose to power, he created a new world record of 'tariff terrorism'. He has… pic.twitter.com/aUgrVhm5pa — ANI (@ANI) March 9, 2025 Ramdev also emphasised that India must accelerate its development in these turbulent times, as certain powerful nations want to push the world towards chaos and destruction. Also read: 'Did this out of respect for Sheinbaum'; Trump suspends most Mexico tariffs until April 2 ‘Trump has made tariffs household name’: Congress leader Jairam Ramesh Congress general secretary Jairam Ramesh also said that Trump has made tariffs a household name across the world. “Till the mid-1910s tariffs were the main source of revenue for the US government. In 1913, the US Constitution was amended to introduce a federal income tax for the first time,” Ramesh said in a post on X. President Trump has made tariffs a household name across the world. Till the mid-1910s tariffs were the main source of revenue for the US Govt. In 1913, the US Constitution was amended to introduce a federal income tax for the first time. One of the most influential economists… — Jairam Ramesh (@Jairam_Ramesh) March 9, 2025 “One of the most influential economists who championed and campaigned for the federal income tax was Edwin Seligman, a Professor of Public Finance at Columbia University,” he added. Trump claims India agreed to reduce tariffs on US imports Donald Trump recently claimed that India has agreed to significantly reduce tariffs on US goods after he slammed India for having high duties. Following this, Ramesh questioned PM Modi as to what the Indian government had agreed to amidst Commerce Minister Piyush Goyal's visit to Washington. "The Commerce Minister Piyush Goyal is in Washington DC to talk trade with the Americans. Meanwhile, President Trump says this. What has the Modi Government agreed to? Are the interests of Indian farmers and of Indian manufacturing being compromised? The PM must take Parliament into confidence when it resumes on March 10th," Ramesh wrote in a post on X. The Commerce Minister Piyush Goyal is in Washington DC to talk trade with the Americans. Meanwhile President Trump says this. What has the Modi Government agreed to? Are the interests of Indian farmers and of Indian manufacturing being compromised? The PM must take Parliament… pic.twitter.com/K625e8vGrM — Jairam Ramesh (@Jairam_Ramesh) March 8, 2025 "'You tariff, I tariff', that is not the way international trade functions. These rules have been negotiated. The WTO is World Trade Organisation not World Trump Organisation," he said. (With inputs from agencies)

‘Tariff terrorism’: Baba Ramdev condemns reciprocal tax proposed by Trump, accuses him of ripping off democracy

US President Donald Trump's decision to wage a tariff war with the world has rattled global markets. The S&amp;P 500 dropped to its lowest level since before the 2024 election, reflecting investor concern.
<h2>Economy on the frontline?</h2>
The tariffs, which impact major goods trade, including Steel, Aluminium, and Auto parts, are projected to raise US consumer costs by an average of $1000 annually. Economists also warn that these moves could slash US GDP growth by up to 1 per cent this year, with some experts even predicting a potential recession. As the trade war escalates, the impact is visible across multiple sectors, with major manufacturers bracing for price hikes and job cuts.
<h2>Industry-wise impact</h2>
The auto industry is particularly vulnerable, with some vehicle prices expected to rise by as much as 25 per cent. Supply chains across North America face disruptions as carmakers warn of potential consequences. Farmers, in particular, face a double blow. Tariffs on US agricultural exports to China and Mexico threaten to undermine key export markets for products like Soybeans, Corn and Pork.
Homebuilders are also under pressure, with tariffs on raw materials and finished goods like appliances and cabinets driving up construction costs. The housing index has fallen 4.8 per cent in 2025. Aerospace suppliers are also facing growing concerns as Canada is the top US Aerospace import partner. Boeing, already grappling with supply chain issues, has seen its stock drop 3.9 per cent.&nbsp;
Steel and Aluminium tariffs add another layer of impact, with Canada supplying 80 per cent of US primary Aluminum imports in 2024. With new duties in place, aluminium giant Alcoa warns of 100,000 job losses in the US. The company's stock is already down 17 per cent this year.
Meanwhile, Trump defended his tariff strategy in his latest Congress speech. 'Tariffs are not just about protecting American jobs. They're about protecting the soul of our country. Tariffs are about making America rich again and making America great again and it's happening and it will happen rather quickly. There'll be a little disturbance but we're okay with that. It won't be much,' he said.
However, critics argue that the economic costs outweigh the benefits. Inflation is projected to rise by 0.6 percentage points due to tariffs. Gas prices in the Northeast and Midwest could also rise 20 to 40 cents a gallon, putting additional pressure on American households. As the trade war builds, many question the long-term effectiveness of this aggressive trade strategy.

Business & Economy, As the trade war escalates, the impact is visible across multiple sectors, with major manufacturers bracing for price hikes and job cuts.

US President Donald Trump's decision to wage a tariff war with the world has rattled global markets. The S&P 500 dropped to its lowest level since before the 2024 election, reflecting investor concern. Economy on the frontline? The tariffs, which impact major goods trade, including Steel, Aluminium, and Auto parts, are projected to raise US consumer costs by an average of $1000 annually. Economists also warn that these moves could slash US GDP growth by up to 1 per cent this year, with some experts even predicting a potential recession. As the trade war escalates, the impact is visible across multiple sectors, with major manufacturers bracing for price hikes and job cuts. Industry-wise impact The auto industry is particularly vulnerable, with some vehicle prices expected to rise by as much as 25 per cent. Supply chains across North America face disruptions as carmakers warn of potential consequences. Farmers, in particular, face a double blow. Tariffs on US agricultural exports to China and Mexico threaten to undermine key export markets for products like Soybeans, Corn and Pork. Homebuilders are also under pressure, with tariffs on raw materials and finished goods like appliances and cabinets driving up construction costs. The housing index has fallen 4.8 per cent in 2025. Aerospace suppliers are also facing growing concerns as Canada is the top US Aerospace import partner. Boeing, already grappling with supply chain issues, has seen its stock drop 3.9 per cent. Steel and Aluminium tariffs add another layer of impact, with Canada supplying 80 per cent of US primary Aluminum imports in 2024. With new duties in place, aluminium giant Alcoa warns of 100,000 job losses in the US. The company's stock is already down 17 per cent this year. Meanwhile, Trump defended his tariff strategy in his latest Congress speech. 'Tariffs are not just about protecting American jobs. They're about protecting the soul of our country. Tariffs are about making America rich again and making America great again and it's happening and it will happen rather quickly. There'll be a little disturbance but we're okay with that. It won't be much,' he said. However, critics argue that the economic costs outweigh the benefits. Inflation is projected to rise by 0.6 percentage points due to tariffs. Gas prices in the Northeast and Midwest could also rise 20 to 40 cents a gallon, putting additional pressure on American households. As the trade war builds, many question the long-term effectiveness of this aggressive trade strategy.

Trump's tariffs defence meets economic reality

The US President Donald Trump's decision to impose tariffs on Canada, Mexico, and China has dramatically affected relations with three of America&rsquo;s key trading partners.
But Trump's obsession with tariffs is not new, it dates back to when he was just a young businessman.
In the 1990s, when <a href="https://www.wionews.com/tags/donald-trump" rel="dofollow noopener" target="_blank">Donald Trump</a> had financial troubles and needed money quickly, he took his 282ft (85m) superyacht, the Trump Princess, to Asia to attract wealthy Japanese buyers.
This was not his first time looking for Japanese investors. During this time, he formed his views on trade and America&rsquo;s relationships with other countries, leading to his strong belief in tariffs: taxes on imports.
<h2>Trump's tremendous resentment for Japan</h2>
Barbara Res, a former executive vice president at the Trump Organisation, told the BBC that Trump had "a tremendous resentment for Japan." She said he disliked how Japanese businessmen were seen as smart and felt the US was not getting enough in return for protecting Japan.
Trump often complained about how hard it was to make deals with large groups of Japanese businessmen. "I'm tired of watching other countries ripping off the United States," he said.
Also read: <a href="https://www.wionews.com/world/is-time-magazine-still-in-business-trump-asks-after-president-musk-cover-8701655">'Is Time Magazine still in business?' Trump asks after 'President Musk' cover</a>
<h2>Allies should 'pay their fair share'</h2>
After releasing his 1987 book, The Art of the Deal, Trump spoke out against America's trade policies in various interviews. On The Oprah Show, he told Oprah Winfrey that America&rsquo;s allies should "pay their fair share" and accused Japan of "dumping" products into the US while making it "impossible to do business" there.
At the time, Japan was becoming a big competitor in manufacturing, especially in electronics and cars. As US factories closed and Japanese brands grew, some experts believed Japan might overtake the US as the world&rsquo;s biggest economy.
Also read: <a href="https://www.wionews.com/world/trump-intention-to-absorb-canada-into-us-is-real-thing-8700778">Trudeau says Trump's threat to absorb Canada into US is a 'real thing'</a>
Before his interview with Oprah, Trump spent nearly $100,000 on full-page ads in three major US newspapers to publish an "open letter." The ad, titled "There's nothing wrong with America's Foreign Defense Policy that a little backbone can't cure," claimed Japan and other nations were taking advantage of the US. He wrote, "The Japanese, unimpeded by the huge costs of defending themselves (as long as the United States will do it for free), have built a strong and vibrant economy with unprecedented surpluses."
Trump thought the solution was simple: tax these wealthy nations. "The world is laughing at America's politicians as we protect ships we don't own, carrying oil we don't need, destined for allies who won't help," he wrote.
This ad showed Trump&rsquo;s approach to foreign policy, believing that America&rsquo;s allies were taking advantage of the country. He rejected the idea that the US should support other nations without getting something in return and instead pushed for a tougher trade policy.
Clyde Prestowitz, who worked with Japan during the Reagan administration, said Trump&rsquo;s views were not supported by serious experts. "Tariffs are kind of a showy thing that you can say, look what I did, I banged those guys&hellip; so you know, you can be a tough guy. Whether or not they are effective in any way is really open to discussion," he told the BBC.
Also read: <a href="https://www.wionews.com/trending/playstation-network-outage-disrupts-services-for-ps4-ps5-users-angry-gamers-demand-answers-8703225">PlayStation Network outage disrupts services for PS4, PS5 users; angry gamers demand answers</a>
Prestowitz argued that the real issue, both then and now, is that the US lacks a solid manufacturing strategy, even though it complains about unfair trade.
Till now, Trump&rsquo;s economic beliefs remain the same. He still sees tariffs as a way to push other countries to open their markets and reduce trade deficits. Joseph LaVorgna, a former chief economist of the National Economic Council during Trump&rsquo;s first term, told the BBC, "I think that President Trump understands something which is very important, being a businessman and being transactional, and that is free trade is great in theory but in the real world you need to have fair trade and that's a level playing field."
(With inputs from agencies)

World: Trump often complained about how hard it was to make deals with large groups of Japanese businessmen. "I'm tired of watching other countries ripping off the United States," he said.

The US President Donald Trump's decision to impose tariffs on Canada, Mexico, and China has dramatically affected relations with three of America’s key trading partners. But Trump's obsession with tariffs is not new, it dates back to when he was just a young businessman. In the 1990s, when Donald Trump had financial troubles and needed money quickly, he took his 282ft (85m) superyacht, the Trump Princess, to Asia to attract wealthy Japanese buyers. This was not his first time looking for Japanese investors. During this time, he formed his views on trade and America’s relationships with other countries, leading to his strong belief in tariffs: taxes on imports. Trump's tremendous resentment for Japan Barbara Res, a former executive vice president at the Trump Organisation, told the BBC that Trump had "a tremendous resentment for Japan." She said he disliked how Japanese businessmen were seen as smart and felt the US was not getting enough in return for protecting Japan. Trump often complained about how hard it was to make deals with large groups of Japanese businessmen. "I'm tired of watching other countries ripping off the United States," he said. Also read: 'Is Time Magazine still in business?' Trump asks after 'President Musk' cover Allies should 'pay their fair share' After releasing his 1987 book, The Art of the Deal, Trump spoke out against America's trade policies in various interviews. On The Oprah Show, he told Oprah Winfrey that America’s allies should "pay their fair share" and accused Japan of "dumping" products into the US while making it "impossible to do business" there. At the time, Japan was becoming a big competitor in manufacturing, especially in electronics and cars. As US factories closed and Japanese brands grew, some experts believed Japan might overtake the US as the world’s biggest economy. Also read: Trudeau says Trump's threat to absorb Canada into US is a 'real thing' Before his interview with Oprah, Trump spent nearly $100,000 on full-page ads in three major US newspapers to publish an "open letter." The ad, titled "There's nothing wrong with America's Foreign Defense Policy that a little backbone can't cure," claimed Japan and other nations were taking advantage of the US. He wrote, "The Japanese, unimpeded by the huge costs of defending themselves (as long as the United States will do it for free), have built a strong and vibrant economy with unprecedented surpluses." Trump thought the solution was simple: tax these wealthy nations. "The world is laughing at America's politicians as we protect ships we don't own, carrying oil we don't need, destined for allies who won't help," he wrote. This ad showed Trump’s approach to foreign policy, believing that America’s allies were taking advantage of the country. He rejected the idea that the US should support other nations without getting something in return and instead pushed for a tougher trade policy. Clyde Prestowitz, who worked with Japan during the Reagan administration, said Trump’s views were not supported by serious experts. "Tariffs are kind of a showy thing that you can say, look what I did, I banged those guys… so you know, you can be a tough guy. Whether or not they are effective in any way is really open to discussion," he told the BBC. Also read: PlayStation Network outage disrupts services for PS4, PS5 users; angry gamers demand answers Prestowitz argued that the real issue, both then and now, is that the US lacks a solid manufacturing strategy, even though it complains about unfair trade. Till now, Trump’s economic beliefs remain the same. He still sees tariffs as a way to push other countries to open their markets and reduce trade deficits. Joseph LaVorgna, a former chief economist of the National Economic Council during Trump’s first term, told the BBC, "I think that President Trump understands something which is very important, being a businessman and being transactional, and that is free trade is great in theory but in the real world you need to have fair trade and that's a level playing field." (With inputs from agencies)

How Donald Trump's 'tremendous resentment for Japan' fueled his tariff obsession

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