<p>The European Union has sharply criticised US President Donald Trump’s decision to double tariffs on imported steel and aluminium, calling the move a blow to global trade stability. The European Commission reportedly warned that it is prepared to activate countermeasures if a negotiated solution is not reached soon.</p><p>&nbsp;</p><p>According to Reuters, Trump on Friday announced that the US would raise tariffs on steel and aluminium imports from 25 per cent to 50 per cent, citing national security and the need to protect American industries.&nbsp;</p><p>&nbsp;</p><p>The tariff hike is seen as a major escalation in the ongoing trade conflict between Washington and its allies.</p><p>&nbsp;</p><p>“We strongly regret the announced increase of US tariffs on steel imports from 25 per cent to 50 per cent,” a European Commission spokesperson said in an emailed statement, as quoted by Reuters.</p><p>&nbsp;</p><p>The Commission noted that the decision “adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic.” It further added that the tariff hike undermines efforts currently underway to reach a negotiated resolution between the EU and US.</p><h2>EU prepares retaliatory measures</h2><p>The EU had earlier paused its own counter-tariff actions in order to allow room for diplomatic talks. However, following Trump’s latest announcement, the Commission said it was finalising internal consultations on expanding its trade defence measures.</p><p>&nbsp;</p><p>“The EU is prepared to impose countermeasures, including in response to the latest US tariff increase,” the spokesperson said, according to Reuters.</p><p>&nbsp;</p><p>If talks fail, both existing and newly drafted EU tariffs will take effect on 14 July—or earlier if required. These retaliatory measures are expected to target key American exports, similar to past EU responses during previous tariff disputes.</p><h2>Impact on transatlantic trade ties</h2><p>Trump’s decision comes amid growing friction with both China and the EU on multiple trade fronts. The doubling of tariffs is not only expected to raise input costs for US manufacturers but also risks damaging already fragile EU-US trade relations.</p><p>&nbsp;</p><p>European officials view the move as part of a broader trend in Trump’s protectionist trade policies, which have also included hefty tariffs on Chinese goods and threats against auto imports from Germany and Japan.</p><p>&nbsp;</p><p>The European Commission reiterated that it remains open to discussions but stressed the importance of a fair and rules-based global trading system.</p><p>&nbsp;</p><p>“The tariff increase also undermines ongoing efforts to reach a negotiated solution,” the Commission said, per Reuters.</p><p><br>&nbsp;</p>

The European Commission has warned that it is prepared to activate countermeasures if a negotiated solution is not reached soon. 


The European Union has sharply criticised US President Donald Trump’s decision to double tariffs on imported steel and aluminium, calling the move a blow to global trade stability. The European Commission reportedly warned that it is prepared to activate countermeasures if a negotiated solution is not reached soon. According to Reuters, Trump on Friday announced that the US would raise tariffs on steel and aluminium imports from 25 per cent to 50 per cent, citing national security and the need to protect American industries. The tariff hike is seen as a major escalation in the ongoing trade conflict between Washington and its allies. “We strongly regret the announced increase of US tariffs on steel imports from 25 per cent to 50 per cent,” a European Commission spokesperson said in an emailed statement, as quoted by Reuters. The Commission noted that the decision “adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic.” It further added that the tariff hike undermines efforts currently underway to reach a negotiated resolution between the EU and US. EU prepares retaliatory measures The EU had earlier paused its own counter-tariff actions in order to allow room for diplomatic talks. However, following Trump’s latest announcement, the Commission said it was finalising internal consultations on expanding its trade defence measures. “The EU is prepared to impose countermeasures, including in response to the latest US tariff increase,” the spokesperson said, according to Reuters. If talks fail, both existing and newly drafted EU tariffs will take effect on 14 July—or earlier if required. These retaliatory measures are expected to target key American exports, similar to past EU responses during previous tariff disputes. Impact on transatlantic trade ties Trump’s decision comes amid growing friction with both China and the EU on multiple trade fronts. The doubling of tariffs is not only expected to raise input costs for US manufacturers but also risks damaging already fragile EU-US trade relations. European officials view the move as part of a broader trend in Trump’s protectionist trade policies, which have also included hefty tariffs on Chinese goods and threats against auto imports from Germany and Japan. The European Commission reiterated that it remains open to discussions but stressed the importance of a fair and rules-based global trading system. “The tariff increase also undermines ongoing efforts to reach a negotiated solution,” the Commission said, per Reuters.

<p>The European Union has strongly criticized US President Donald Trump's decision to double tariffs on imported steel and aluminium, arguing it is a blow to global trade stability.</p>

EU warns of countermeasures as Trump doubles US steel tariffs

<p>Pakistan is sending a delegation to the United States next week for high-stakes trade talks, President Donald Trump confirmed on Friday, as the South Asian nation tries to avert a looming tariff crisis that could jeopardise billions in export earnings, according to Reuters.&nbsp;</p><p>&nbsp;</p><p>The development comes amid Washington’s broader tariff campaign against countries running significant trade surpluses with the US and follows a sharp warning from Trump over recent military clashes between Pakistan and its neighbour India.</p><h2>Why Pakistan is under pressure</h2><p>As per Reuters, the US government last month announced sweeping tariff hikes on multiple trading partners. Among them, Pakistan now faces potential tariffs of up to 29 per cent on its exports to the US, owing to a trade surplus of approximately $3 billion.</p><p>&nbsp;</p><p>This makes the upcoming trade negotiations critical for Islamabad, which heavily relies on US market access to sustain key sectors such as textiles and surgical instruments.</p><p>&nbsp;</p><p>Trump, speaking at Joint Base Andrews, said that “Representatives from Pakistan are coming to the United States next week as they seek to make a deal on tariffs,” as quoted by Reuters.</p><p>&nbsp;</p><p>While he did not elaborate on the scope of discussions, his remarks signal that the talks will centre on tariff exemptions and possibly a broader bilateral trade reset.</p><h2>A fragile moment for regional diplomacy</h2><p>The talks also come against the backdrop of heightened military tensions in South Asia.&nbsp;</p><p>Earlier in May, Pakistan and India engaged in four days of intense cross-border conflict involving missiles, drones, artillery, and fighter jets, worst confrontation in decades.</p><p>&nbsp;</p><p>Referring to this, Trump added, “I would have no interest in making a deal with Pakistan or India if they were to engage in war with each other,” as quoted by Reuters.</p><p>&nbsp;</p><p>The White House is closely monitoring the situation, given the nuclear capabilities of both nations and their strategic importance in regional stability.</p><h2>US-Pakistan trade dependency</h2><p>According to 2024 trade data from the Office of the United States Trade Representative (USTR), total two-way goods trade between the US and Pakistan stood at $12.2 billion, with Pakistan exporting $7.6 billion worth of goods to the US and importing $4.6 billion in return.</p><p>&nbsp;</p><p>Pakistan’s largest exports to the US include:</p><ul><li>Textiles and apparel: over $4.4 billion</li><li>Surgical and medical instruments: around $500 million</li><li>Leather goods and footwear</li><li>Sporting equipment</li></ul><p>The US is Pakistan’s single largest export destination, accounting for over 21 per cent of its total exports, according to data from Pakistan’s Ministry of Commerce.</p><p>&nbsp;</p><p>By contrast, US exports to Pakistan remain limited, concentrated mainly in machinery, pharmaceuticals, aircraft parts, and agricultural products.</p><p>&nbsp;</p><p>This asymmetry gives the US considerable leverage in trade negotiations but also highlights Pakistan’s economic vulnerability if tariff hikes are implemented.</p><h2>Will Pakistan offer concessions?</h2><p>As per Bloomberg, Pakistan may offer market access guarantees and investment incentives to US firms as part of the deal, particularly in sectors such as agriculture, green energy, and e-commerce.</p><p>&nbsp;</p><p>Pakistan’s Board of Investment is reportedly finalising a list of federal infrastructure contracts and public-private partnerships worth over $25 billion, which could be opened up to US bidders in exchange for tariff relief.</p><p>&nbsp;</p><p>The talks are expected to include Pakistan’s caretaker Commerce Minister and key officials from its Finance and Foreign Affairs Ministries, according to government sources quoted by The Express Tribune.</p><h2><strong>US Parallel talks with India complicate the picture</strong></h2><p>While Pakistan prepares for negotiations, India is also deepening trade engagement with Washington. Trump confirmed on Friday that the US is “very close [to] making a deal with India,” as quoted by Reuters.</p><p>India’s Trade Minister Piyush Goyal was in Washington earlier this month to advance discussions, with an interim trade agreement expected by early July, as per Reuters.</p><p>&nbsp;</p><p>India currently faces 26 per cent tariffs on US-bound goods under the April tariff hike and is reportedly offering $50 billion in procurement opportunities to American firms in return for relief and improved access to the US tech and defence markets.</p><p>&nbsp;</p><p>This parallel track may influence how Washington negotiates with Islamabad, potentially demanding more structural reforms or commercial openness.</p><h2><strong>What happens next?</strong></h2><p>For Pakistan, the stakes are high. Without a deal, its key exports could become uncompetitive overnight, triggering factory closures and job losses in industries that employ millions of workers, particularly in cities like Karachi, Sialkot, and Faisalabad.</p><p>&nbsp;</p><p>The US also risks weakening a strategically important partner in South Asia, one it often relies on for counterterrorism, Afghan stability, and regional intelligence cooperation.</p><p>&nbsp;</p><p>Trade officials from both countries are expected to meet in Washington next week, with preparatory talks already underway, according to sources quoted by Dawn&nbsp;</p><p><br>&nbsp;</p>

Business & Economy: This comes amid Washington broader tariff campaign against countries with significant trade surpluses with the US and a warning from Trump over recent military clashes between Pakistan and its neighbor India. 

Pakistan is sending a delegation to the United States next week for high-stakes trade talks, President Donald Trump confirmed on Friday, as the South Asian nation tries to avert a looming tariff crisis that could jeopardise billions in export earnings, according to Reuters. The development comes amid Washington’s broader tariff campaign against countries running significant trade surpluses with the US and follows a sharp warning from Trump over recent military clashes between Pakistan and its neighbour India. Why Pakistan is under pressure As per Reuters, the US government last month announced sweeping tariff hikes on multiple trading partners. Among them, Pakistan now faces potential tariffs of up to 29 per cent on its exports to the US, owing to a trade surplus of approximately $3 billion. This makes the upcoming trade negotiations critical for Islamabad, which heavily relies on US market access to sustain key sectors such as textiles and surgical instruments. Trump, speaking at Joint Base Andrews, said that “Representatives from Pakistan are coming to the United States next week as they seek to make a deal on tariffs,” as quoted by Reuters. While he did not elaborate on the scope of discussions, his remarks signal that the talks will centre on tariff exemptions and possibly a broader bilateral trade reset. A fragile moment for regional diplomacy The talks also come against the backdrop of heightened military tensions in South Asia. Earlier in May, Pakistan and India engaged in four days of intense cross-border conflict involving missiles, drones, artillery, and fighter jets, worst confrontation in decades. Referring to this, Trump added, “I would have no interest in making a deal with Pakistan or India if they were to engage in war with each other,” as quoted by Reuters. The White House is closely monitoring the situation, given the nuclear capabilities of both nations and their strategic importance in regional stability. US-Pakistan trade dependency According to 2024 trade data from the Office of the United States Trade Representative (USTR), total two-way goods trade between the US and Pakistan stood at $12.2 billion, with Pakistan exporting $7.6 billion worth of goods to the US and importing $4.6 billion in return. Pakistan’s largest exports to the US include: Textiles and apparel: over $4.4 billion Surgical and medical instruments: around $500 million Leather goods and footwear Sporting equipment The US is Pakistan’s single largest export destination, accounting for over 21 per cent of its total exports, according to data from Pakistan’s Ministry of Commerce. By contrast, US exports to Pakistan remain limited, concentrated mainly in machinery, pharmaceuticals, aircraft parts, and agricultural products. This asymmetry gives the US considerable leverage in trade negotiations but also highlights Pakistan’s economic vulnerability if tariff hikes are implemented. Will Pakistan offer concessions? As per Bloomberg, Pakistan may offer market access guarantees and investment incentives to US firms as part of the deal, particularly in sectors such as agriculture, green energy, and e-commerce. Pakistan’s Board of Investment is reportedly finalising a list of federal infrastructure contracts and public-private partnerships worth over $25 billion, which could be opened up to US bidders in exchange for tariff relief. The talks are expected to include Pakistan’s caretaker Commerce Minister and key officials from its Finance and Foreign Affairs Ministries, according to government sources quoted by The Express Tribune. US Parallel talks with India complicate the picture While Pakistan prepares for negotiations, India is also deepening trade engagement with Washington. Trump confirmed on Friday that the US is “very close [to] making a deal with India,” as quoted by Reuters. India’s Trade Minister Piyush Goyal was in Washington earlier this month to advance discussions, with an interim trade agreement expected by early July, as per Reuters. India currently faces 26 per cent tariffs on US-bound goods under the April tariff hike and is reportedly offering $50 billion in procurement opportunities to American firms in return for relief and improved access to the US tech and defence markets. This parallel track may influence how Washington negotiates with Islamabad, potentially demanding more structural reforms or commercial openness. What happens next? For Pakistan, the stakes are high. Without a deal, its key exports could become uncompetitive overnight, triggering factory closures and job losses in industries that employ millions of workers, particularly in cities like Karachi, Sialkot, and Faisalabad. The US also risks weakening a strategically important partner in South Asia, one it often relies on for counterterrorism, Afghan stability, and regional intelligence cooperation. Trade officials from both countries are expected to meet in Washington next week, with preparatory talks already underway, according to sources quoted by Dawn

<p>Pakistan is reportedly set to send a delegation to the US next week for high-stakes trade talks to avoid a potential tariff crisis that could threaten billions in export earnings.&nbsp;</p>

Pakistan heads to Washington for trade talks: What’s at stake as US tariff threat looms?

<p>US consumer spending barely rose in April as households tightened their wallets and diverted funds into savings. This reportedly reflects growing unease over the country’s economic trajectory amid erratic tariff policies and legal roadblocks to US President Donald Trump’s sweeping trade duties.</p><p><br>According to Reuters, citing data from the US Commerce Department, consumer spending, the backbone of the US economy climbed just 0.2 per cent in April, a steep slowdown from March’s 0.7 per cent gain.&nbsp;</p><p>&nbsp;</p><p>The deceleration suggests that Americans, rattled by recent tariff shocks and broader uncertainty, are preparing for leaner times.</p><h2><strong>Spending weakens as tariff anxiety rises</strong></h2><p>While services spending held firm—buoyed by housing, utilities, healthcare, and hospitality—goods spending softened considerably.&nbsp;</p><p><br>Shoppers cut back on vehicles, apparel, and recreational goods, which had seen a pre-emptive boost in March due to stockpiling before new tariffs, Reuters reported.</p><p><br>President Trump’s new import duties, largely targeting Chinese goods, had been slashed to 30 per cent from 145 per cent through mid-August, following a ruling by a US trade court, as per Reuters.&nbsp;</p><p>&nbsp;</p><p>The court found that the president had overstepped his authority. However, a federal appeals court temporarily reinstated most of the duties the next day, plunging the economic outlook into further ambiguity.</p><p>&nbsp;</p><p>“The Liberation Day tariff shock clearly spooked consumers,” said Scott Anderson, Chief US Economist at BMO Capital Markets, in a statement to Reuters. “They’re now saving for a rainy day.”</p><h2><strong>Savings jump to one-year high</strong></h2><p>That caution was reflected in the personal saving rate, which jumped to 4.9 per cent in April, the highest since March 2024, from 4.3 per cent in March, according to the US Commerce Department’s Bureau of Economic Analysis (BEA), as cited by Reuters.</p><p>&nbsp;</p><p>Adding to the economic unease, the US economy shrank at an annualised rate of 0.2 per cent in Q1 2025, the first contraction in three years. This decline was mainly attributed to a surge in imports before tariffs kicked in, according to Reuters, referencing official government data.</p><p>&nbsp;</p><p>In a separate report, the US Census Bureau stated that the goods trade deficit shrank by 46 per cent to $87.6 billion in April. This was due to a sharp decline in imports, which fell by $68.4 billion to $276.1 billion, while goods exports rose by $6.3 billion to $188.5 billion.</p><h2><strong>Inflation eases, but Fed remains on edge</strong></h2><p>Inflation remained subdued in April. The PCE Price Index, the Federal Reserve’s preferred inflation measure, rose 0.1 per cent in April after remaining flat in March, as per the BEA data cited by Reuters.&nbsp;</p><p>&nbsp;</p><p>On a yearly basis, overall PCE inflation increased 2.1 per cent, while core PCE, which excludes food and energy, climbed 2.5 per cent, marking the smallest increase since March 2021, as per Reuters.&nbsp;</p><p>&nbsp;</p><p>Despite these modest gains, the Federal Reserve remains cautious. According to minutes from its May 6–7 meeting, reviewed by Reuters, Fed officials highlighted concerns about rising short-term inflation expectations.&nbsp;</p><p>&nbsp;</p><p>Some policymakers had reportedly warned that these expectations could influence businesses to raise prices and push long-term inflation even higher.</p><h2><strong>Trade deficit shrinks but sentiment deteriorates</strong></h2><p>According to the US Census Bureau, the collapse in imports and slight export gains contributed to the shrinking trade deficit.&nbsp;</p><p><br>However, economists interviewed by Reuters cautioned that the downturn in imports may be temporary and tied to the unpredictable implementation of trade tariffs.</p><p>&nbsp;</p><p>Markets reacted nervously. As per Reuters, US stocks opened lower, Treasury yields rose slightly, and the dollar strengthened against major global currencies on Thursday.</p><h2><strong>Outlook clouded by policy unpredictability</strong></h2><p>With Trump’s tariffs caught in a legal tug-of-war and inflation trending downward but unstable, the economic recovery remains fragile.&nbsp;</p><p>&nbsp;</p><p>Economists quoted by Reuters suggested that while softer inflation offers some relief, uncertainty surrounding tariff rulings is expected to weigh heavily on both consumer confidence and business investment in the months ahead.</p>

Business & Economy: The Liberation Day tariff shock spooked consumers, who are now saving for a rainy day. 

US consumer spending barely rose in April as households tightened their wallets and diverted funds into savings. This reportedly reflects growing unease over the country’s economic trajectory amid erratic tariff policies and legal roadblocks to US President Donald Trump’s sweeping trade duties. According to Reuters, citing data from the US Commerce Department, consumer spending, the backbone of the US economy climbed just 0.2 per cent in April, a steep slowdown from March’s 0.7 per cent gain. The deceleration suggests that Americans, rattled by recent tariff shocks and broader uncertainty, are preparing for leaner times. Spending weakens as tariff anxiety rises While services spending held firm—buoyed by housing, utilities, healthcare, and hospitality—goods spending softened considerably. Shoppers cut back on vehicles, apparel, and recreational goods, which had seen a pre-emptive boost in March due to stockpiling before new tariffs, Reuters reported. President Trump’s new import duties, largely targeting Chinese goods, had been slashed to 30 per cent from 145 per cent through mid-August, following a ruling by a US trade court, as per Reuters. The court found that the president had overstepped his authority. However, a federal appeals court temporarily reinstated most of the duties the next day, plunging the economic outlook into further ambiguity. “The Liberation Day tariff shock clearly spooked consumers,” said Scott Anderson, Chief US Economist at BMO Capital Markets, in a statement to Reuters. “They’re now saving for a rainy day.” Savings jump to one-year high That caution was reflected in the personal saving rate, which jumped to 4.9 per cent in April, the highest since March 2024, from 4.3 per cent in March, according to the US Commerce Department’s Bureau of Economic Analysis (BEA), as cited by Reuters. Adding to the economic unease, the US economy shrank at an annualised rate of 0.2 per cent in Q1 2025, the first contraction in three years. This decline was mainly attributed to a surge in imports before tariffs kicked in, according to Reuters, referencing official government data. In a separate report, the US Census Bureau stated that the goods trade deficit shrank by 46 per cent to $87.6 billion in April. This was due to a sharp decline in imports, which fell by $68.4 billion to $276.1 billion, while goods exports rose by $6.3 billion to $188.5 billion. Inflation eases, but Fed remains on edge Inflation remained subdued in April. The PCE Price Index, the Federal Reserve’s preferred inflation measure, rose 0.1 per cent in April after remaining flat in March, as per the BEA data cited by Reuters. On a yearly basis, overall PCE inflation increased 2.1 per cent, while core PCE, which excludes food and energy, climbed 2.5 per cent, marking the smallest increase since March 2021, as per Reuters. Despite these modest gains, the Federal Reserve remains cautious. According to minutes from its May 6–7 meeting, reviewed by Reuters, Fed officials highlighted concerns about rising short-term inflation expectations. Some policymakers had reportedly warned that these expectations could influence businesses to raise prices and push long-term inflation even higher. Trade deficit shrinks but sentiment deteriorates According to the US Census Bureau, the collapse in imports and slight export gains contributed to the shrinking trade deficit. However, economists interviewed by Reuters cautioned that the downturn in imports may be temporary and tied to the unpredictable implementation of trade tariffs. Markets reacted nervously. As per Reuters, US stocks opened lower, Treasury yields rose slightly, and the dollar strengthened against major global currencies on Thursday. Outlook clouded by policy unpredictability With Trump’s tariffs caught in a legal tug-of-war and inflation trending downward but unstable, the economic recovery remains fragile. Economists quoted by Reuters suggested that while softer inflation offers some relief, uncertainty surrounding tariff rulings is expected to weigh heavily on both consumer confidence and business investment in the months ahead.

<p>US consumer spending barely increased in April, as households strained their finances and shifted funds into savings.&nbsp;</p>

US consumer spending falters in April as inflation cools and savings rise

<p>China’s manufacturing sector is poised to contract for the second month in a row in May, signalling fresh strain on the country’s export-heavy economy as it faces simultaneous trade flare-ups with the United States and the European Union, highlights a Reuters poll.<br>&nbsp;</p><p>According to a Reuters poll of 21 economists, the official Purchasing Managers’ Index (PMI), scheduled for release on Saturday (June 1), is expected to register at 49.5, slightly higher than April’s 49.0, but still below the 50-point threshold that separates expansion from contraction.&nbsp;</p><p>&nbsp;</p><p>The latest data reflects a broader slowdown across China’s $19 trillion economy, which is contending with weakening domestic demand, deflation, and a growing property crisis, even as policymakers race to stabilise growth through stimulus.</p><h2><strong>China is now fighting a trade war on two fronts</strong></h2><p>The May factory slump comes at a time when China is navigating major trade tensions with both Washington and Brussels.</p><p>&nbsp;</p><p>In the US, President Donald Trump has escalated economic hostilities by slapping 145 per cent tariffs on a wide range of Chinese imports — part of his broader push to decouple from China.&nbsp;<br>&nbsp;</p><p>Although a temporary 90-day tariff truce was reached, with duties lowered to 30 per cent, negotiations remain deadlocked and the core issues unresolved.</p><p>&nbsp;</p><p>Simultaneously, the European Union has reportedly launched anti-dumping investigations targeting Chinese tyres and electric vehicles.&nbsp;<br>&nbsp;</p><p>China has reportedly retaliated with probes into European brandy and dairy products, fuelling fears of a full-fledged trade confrontation with the bloc, as per Reuters.&nbsp;</p><p>&nbsp;</p><p>This dual-front pressure is reportedly placing immense strain on China’s industrial backbone, which has traditionally relied on open global markets to power growth.</p><h2><strong>Domestic challenges are compounding the crisis</strong></h2><p>According to Reuters, China’s internal economic environment offers little relief. Despite a stronger-than-expected GDP performance in Q1 2025, deflation remains entrenched.&nbsp;</p><p>&nbsp;</p><p>The country’s producer price index dropped 2.7 per cent year-on-year in April, extending its contraction for a third consecutive month.&nbsp;</p><p>&nbsp;</p><p>Reuters poll highlights that real incomes have stagnated, and consumer spending has yet to rebound convincingly after the pandemic. Meanwhile, the long-running property sector slump continues to drag on overall sentiment and private investment.<br>&nbsp;</p><p>Even though industrial profits showed some signs of improvement, they remain concentrated among a handful of state-backed firms, leaving smaller manufacturers especially exposed to the current downturn, as per Reuters&nbsp;</p><h2><strong>Beijing is expected to roll out more stimulus</strong></h2><p>To counteract the external and internal economic drag, China’s government is reportedly expected to announce further fiscal and monetary stimulus measures. These could reportedly include additional interest rate cuts, tax incentives, infrastructure spending, and targeted credit for small and medium-sized firms.<br>&nbsp;</p><p>The PMI numbers to be released on June 1 will be followed by the Caixin private sector PMI on June 3, which focuses more on smaller, export-oriented companies. Analysts predict a modest improvement in the Caixin reading, up to 50.6 from 50.4, suggesting fragile but ongoing momentum.</p><h2><strong>The road ahead is uncertain</strong></h2><p>As the world’s second-largest economy contends with deepening trade hostilities and an uneven post-pandemic recovery, the question now is whether Beijing can successfully pivot from an export-driven model to a more resilient, demand-led economy.</p><p>&nbsp;</p><p>The coming weeks, with trade talks in flux, tariff deadlines looming, and critical economic data releases will be crucial in shaping China’s path through a turbulent global landscape.</p>

Business & Economy: This comes amid China is grappling with major trade tensions with the US and the EU.

China’s manufacturing sector is poised to contract for the second month in a row in May, signalling fresh strain on the country’s export-heavy economy as it faces simultaneous trade flare-ups with the United States and the European Union, highlights a Reuters poll. According to a Reuters poll of 21 economists, the official Purchasing Managers’ Index (PMI), scheduled for release on Saturday (June 1), is expected to register at 49.5, slightly higher than April’s 49.0, but still below the 50-point threshold that separates expansion from contraction. The latest data reflects a broader slowdown across China’s $19 trillion economy, which is contending with weakening domestic demand, deflation, and a growing property crisis, even as policymakers race to stabilise growth through stimulus. China is now fighting a trade war on two fronts The May factory slump comes at a time when China is navigating major trade tensions with both Washington and Brussels. In the US, President Donald Trump has escalated economic hostilities by slapping 145 per cent tariffs on a wide range of Chinese imports — part of his broader push to decouple from China. Although a temporary 90-day tariff truce was reached, with duties lowered to 30 per cent, negotiations remain deadlocked and the core issues unresolved. Simultaneously, the European Union has reportedly launched anti-dumping investigations targeting Chinese tyres and electric vehicles. China has reportedly retaliated with probes into European brandy and dairy products, fuelling fears of a full-fledged trade confrontation with the bloc, as per Reuters. This dual-front pressure is reportedly placing immense strain on China’s industrial backbone, which has traditionally relied on open global markets to power growth. Domestic challenges are compounding the crisis According to Reuters, China’s internal economic environment offers little relief. Despite a stronger-than-expected GDP performance in Q1 2025, deflation remains entrenched. The country’s producer price index dropped 2.7 per cent year-on-year in April, extending its contraction for a third consecutive month. Reuters poll highlights that real incomes have stagnated, and consumer spending has yet to rebound convincingly after the pandemic. Meanwhile, the long-running property sector slump continues to drag on overall sentiment and private investment. Even though industrial profits showed some signs of improvement, they remain concentrated among a handful of state-backed firms, leaving smaller manufacturers especially exposed to the current downturn, as per Reuters Beijing is expected to roll out more stimulus To counteract the external and internal economic drag, China’s government is reportedly expected to announce further fiscal and monetary stimulus measures. These could reportedly include additional interest rate cuts, tax incentives, infrastructure spending, and targeted credit for small and medium-sized firms. The PMI numbers to be released on June 1 will be followed by the Caixin private sector PMI on June 3, which focuses more on smaller, export-oriented companies. Analysts predict a modest improvement in the Caixin reading, up to 50.6 from 50.4, suggesting fragile but ongoing momentum. The road ahead is uncertain As the world’s second-largest economy contends with deepening trade hostilities and an uneven post-pandemic recovery, the question now is whether Beijing can successfully pivot from an export-driven model to a more resilient, demand-led economy. The coming weeks, with trade talks in flux, tariff deadlines looming, and critical economic data releases will be crucial in shaping China’s path through a turbulent global landscape.

<p>China's manufacturing sector is expected to contract for the second consecutive month in May, putting strain on the country's export-heavy economy, highlights a Reuters poll.&nbsp;</p>

China’s May factory slowdown likely to deepens as trade tensions with US and EU escalate

<p>Japan&rsquo;s economy contracted unexpectedly in the first quarter of 2025, signalling a fragile recovery. The contraction, which marks the first since 2024, has been attributed to a drop in exports, flat consumer spending, and the looming impact of trade tensions with the US, including tariffs imposed by President Donald Trump.</p>
<p>According to preliminary data from the Cabinet Office, Japan&rsquo;s real GDP contracted an annualised 0.7 per cent in the January-March period, far worse than the median forecast of a 0.3 per cent drop.</p>
<p>This decline follows a robust 2.4 per cent expansion in the previous quarter, highlighting the vulnerability of the export-heavy economy. With private consumption, which accounts for more than half of the economy, stagnating and net exports contributing negatively to growth, Japan&rsquo;s economic outlook appears increasingly uncertain.</p>
<h2>US tariffs deepen challenges</h2>
<p>The contraction in Japan&rsquo;s economy comes as the country faces mounting challenges from trade tensions with the US, particularly following Trump&rsquo;s sweeping tariff measures. In March, the US imposed a 25 per cent duty on steel and aluminium imports, followed by tariffs on automobiles and other Japanese goods in April. These measures are expected to weigh heavily on Japan&rsquo;s export-driven industries, notably the automotive sector, which is a cornerstone of its economic growth.</p>
<p>Japanese automakers, such as Toyota and Honda, have already signalled that the tariffs are affecting their profitability. Honda recently revised its profit forecast for the fiscal year, and Toyota followed suit. The tariffs could cost Japan&rsquo;s automotive sector an estimated &yen;2 trillion ($13.7 billion) in operating profits for the current financial year, prompting concerns about the broader impact on Japan&rsquo;s economy.</p>
<p>Despite these challenges, Japan has signalled that it is prepared to hold out for a better trade deal with the United States. Prime Minister Shigeru Ishiba has made it a priority to negotiate with the US over tariff exemptions. However, the outcome of these talks remains uncertain as the negotiators have yet to reach a breakthrough, and the pressure is mounting on Japan&rsquo;s leadership to secure a favourable deal.</p>
<p>As Japan&rsquo;s economy faces significant headwinds, much of the focus is now on the negotiations with the US over trade tariffs. Japan&rsquo;s economy minister, Ryosei Akazawa, and finance minister, Katsunobu Kato, have already held several rounds of talks with US officials, but significant hurdles remain.</p>
<p>Japan&rsquo;s starting position is the elimination of all new tariffs, including those on automotive and steel imports, which have been particularly damaging to its largest industries. The question now is whether Japan can win exemptions from these tariffs through continued negotiations or whether it will be forced to accept a deal that could further hamper its economic recovery.</p>
<p>While the US and China have recently negotiated a temporary truce, Japan has not yet made substantial progress in its talks with Washington, leaving the country&rsquo;s economic future hanging in the balance.</p>
<h2>India&rsquo;s rising economic power</h2>
<p>While Japan grapples with economic contraction, India is on a different trajectory. With a large and youthful population, a growing manufacturing base, and increasing digital transformation, India has almost closed the economic gap with Japan.</p>
<p>This shift will soon propel India into the position of the world&rsquo;s fourth-largest economy, as Japan&rsquo;s economic challenges deepen. Experts suggest that, with Japan&rsquo;s economy slowing and India continuing its growth trajectory, India may soon surpass Japan in terms of total GDP.</p>
<p>Although the United Nations has reduced India&rsquo;s 2025 growth forecast to 6.3 per cent, experts still predict that India&rsquo;s economic ascent will continue, potentially shifting the global rankings in the coming years.</p>
<h2>The future of Japan&rsquo;s economy</h2>
<p>Japan&rsquo;s economic vulnerability, coupled with its slowing domestic demand, has raised questions about its ability to withstand the impacts of external trade pressures, particularly in light of India&rsquo;s growing economic influence. While Japan&rsquo;s policymakers face pressure to stimulate growth through fiscal measures or interest rate cuts, they are constrained by political considerations and weak demand.</p>
<p>For Japan, the road ahead is fraught with uncertainty. The ongoing trade challenges, combined with stagnant domestic consumption and global trade disruptions, threaten to undermine the nation&rsquo;s ability to maintain its position as a global economic power. Meanwhile, India&rsquo;s continued rise suggests that Japan may soon face new competition for its spot in the top tier of the world&rsquo;s largest economies.</p>
<p>As Japan grapples with these challenges, the global economic landscape is set to undergo a transformation. The balance of power may soon shift, with countries like India emerging as stronger players in the global economy, while Japan&rsquo;s future hangs in the balance amid ongoing trade tensions and internal stagnation.</p>

Business & Economy: Japan’s real GDP contracted an annualised 0.7 per cent in the January-March period highlighting the vulnerability of the export-heavy economy.

Japan’s economy contracted unexpectedly in the first quarter of 2025, signalling a fragile recovery. The contraction, which marks the first since 2024, has been attributed to a drop in exports, flat consumer spending, and the looming impact of trade tensions with the US, including tariffs imposed by President Donald Trump. According to preliminary data from the Cabinet Office, Japan’s real GDP contracted an annualised 0.7 per cent in the January-March period, far worse than the median forecast of a 0.3 per cent drop. This decline follows a robust 2.4 per cent expansion in the previous quarter, highlighting the vulnerability of the export-heavy economy. With private consumption, which accounts for more than half of the economy, stagnating and net exports contributing negatively to growth, Japan’s economic outlook appears increasingly uncertain. US tariffs deepen challenges The contraction in Japan’s economy comes as the country faces mounting challenges from trade tensions with the US, particularly following Trump’s sweeping tariff measures. In March, the US imposed a 25 per cent duty on steel and aluminium imports, followed by tariffs on automobiles and other Japanese goods in April. These measures are expected to weigh heavily on Japan’s export-driven industries, notably the automotive sector, which is a cornerstone of its economic growth. Japanese automakers, such as Toyota and Honda, have already signalled that the tariffs are affecting their profitability. Honda recently revised its profit forecast for the fiscal year, and Toyota followed suit. The tariffs could cost Japan’s automotive sector an estimated ¥2 trillion ($13.7 billion) in operating profits for the current financial year, prompting concerns about the broader impact on Japan’s economy. Despite these challenges, Japan has signalled that it is prepared to hold out for a better trade deal with the United States. Prime Minister Shigeru Ishiba has made it a priority to negotiate with the US over tariff exemptions. However, the outcome of these talks remains uncertain as the negotiators have yet to reach a breakthrough, and the pressure is mounting on Japan’s leadership to secure a favourable deal. As Japan’s economy faces significant headwinds, much of the focus is now on the negotiations with the US over trade tariffs. Japan’s economy minister, Ryosei Akazawa, and finance minister, Katsunobu Kato, have already held several rounds of talks with US officials, but significant hurdles remain. Japan’s starting position is the elimination of all new tariffs, including those on automotive and steel imports, which have been particularly damaging to its largest industries. The question now is whether Japan can win exemptions from these tariffs through continued negotiations or whether it will be forced to accept a deal that could further hamper its economic recovery. While the US and China have recently negotiated a temporary truce, Japan has not yet made substantial progress in its talks with Washington, leaving the country’s economic future hanging in the balance. India’s rising economic power While Japan grapples with economic contraction, India is on a different trajectory. With a large and youthful population, a growing manufacturing base, and increasing digital transformation, India has almost closed the economic gap with Japan. This shift will soon propel India into the position of the world’s fourth-largest economy, as Japan’s economic challenges deepen. Experts suggest that, with Japan’s economy slowing and India continuing its growth trajectory, India may soon surpass Japan in terms of total GDP. Although the United Nations has reduced India’s 2025 growth forecast to 6.3 per cent, experts still predict that India’s economic ascent will continue, potentially shifting the global rankings in the coming years. The future of Japan’s economy Japan’s economic vulnerability, coupled with its slowing domestic demand, has raised questions about its ability to withstand the impacts of external trade pressures, particularly in light of India’s growing economic influence. While Japan’s policymakers face pressure to stimulate growth through fiscal measures or interest rate cuts, they are constrained by political considerations and weak demand. For Japan, the road ahead is fraught with uncertainty. The ongoing trade challenges, combined with stagnant domestic consumption and global trade disruptions, threaten to undermine the nation’s ability to maintain its position as a global economic power. Meanwhile, India’s continued rise suggests that Japan may soon face new competition for its spot in the top tier of the world’s largest economies. As Japan grapples with these challenges, the global economic landscape is set to undergo a transformation. The balance of power may soon shift, with countries like India emerging as stronger players in the global economy, while Japan’s future hangs in the balance amid ongoing trade tensions and internal stagnation.

Japan’s economy contracts amid US tariff strains, India poised to overtake

<div class="x_elementToProof" data-olk-copy-source="MessageBody">Trade ministers from 21 Asia-Pacific nations kicked off a crucial summit on Thursday, only to be greeted by a sobering economic outlook. The Asia-Pacific Economic Cooperation (APEC) forum warned that regional exports will see near-stagnant growth in 2025, a direct consequence of the sweeping tariffs reimposed under former US President Donald Trump&rsquo;s trade policy revival.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">According to APEC&rsquo;s latest regional trends analysis, exports among member economies are projected to rise by just 0.4 per cent this year, a steep decline from the 5.7 per cent growth recorded in 2024. Regional GDP is also forecast to grow at a sluggish 2.6 per cent, revised down from the previous estimate of 3.3 per cent, as reported by Reuters.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">&ldquo;Trade growth is set to decline sharply across APEC due to lower external demand, particularly in manufacturing and consumer goods, while rising uncertainty over goods-related measures weighs on services trade,&rdquo; APEC said in an official statement, as quoted by Reuters.</div>
<h2 class="x_elementToProof"><b>The Trump tariff effect</b><b></b></h2>
<div class="x_elementToProof">The downturn in trade coincides with the revival of tariff policies by the Trump administration, which has targeted more than half of APEC&rsquo;s member nations. Since the forum&rsquo;s inception in 1989, regional average tariff rates had dropped from 17 per cent to 5.3 per cent by 2021, contributing to a more than nine-fold increase in merchandise trade. However, Trump&rsquo;s recent tariff reinstatements threaten to reverse decades of economic integration.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">&ldquo;We&rsquo;re moving as quickly as we possibly can with folks who want to be ambitious,&rdquo; US Trade Representative Jamieson Greer told CNBC before departing for Jeju, declining further comment on his bilateral meeting schedule, Reuters reported.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">The tariff measures have already triggered visible shifts in trade flows and investor sentiment. Economists warn that if the US continues its protectionist stance, sectors such as manufacturing, electronics, and consumer goods could face long-term disruptions.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Meanwhile, China&rsquo;s Vice Commerce Minister Li Chenggang also attended the gathering. Although Reuters reports that no formal meeting with Greer has been confirmed, both sides had agreed to reduce steep tariffs during their initial face-to-face talks in Geneva on 10&ndash;11 May.</div>
<h2 class="x_elementToProof"><b>WTO reform &amp; bilateral deals</b><b></b></h2>
<div class="x_elementToProof">The Jeju summit is also being viewed as a staging ground for broader discussions on World Trade Organization (WTO) reforms, a hot-button issue after Washington recently moved to pause US funding to the institution. The Trump administration has long accused the WTO of enabling China&rsquo;s rise through what it terms &ldquo;unfair export advantages.&rdquo;</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Trade representatives are holding bilateral discussions on the sidelines of the summit, which forms part of the lead-up to the APEC leaders&rsquo; summit later this year in Gyeongju, South Korea.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">APEC, which accounts for 60 per cent of global GDP and half of global trade, remains a key pillar of global economic stability. But with tariff battles heating up and multilateralism on the defensive, the forum faces one of its most pivotal chapters yet.</div>

Business & Economy: APEC's latest report highlights exports among member economies are projected to rise by just 0.4 per cent this year, a steep decline from the 5.7 per cent growth recorded in 2024.

Trade ministers from 21 Asia-Pacific nations kicked off a crucial summit on Thursday, only to be greeted by a sobering economic outlook. The Asia-Pacific Economic Cooperation (APEC) forum warned that regional exports will see near-stagnant growth in 2025, a direct consequence of the sweeping tariffs reimposed under former US President Donald Trump’s trade policy revival. According to APEC’s latest regional trends analysis, exports among member economies are projected to rise by just 0.4 per cent this year, a steep decline from the 5.7 per cent growth recorded in 2024. Regional GDP is also forecast to grow at a sluggish 2.6 per cent, revised down from the previous estimate of 3.3 per cent, as reported by Reuters. “Trade growth is set to decline sharply across APEC due to lower external demand, particularly in manufacturing and consumer goods, while rising uncertainty over goods-related measures weighs on services trade,” APEC said in an official statement, as quoted by Reuters. The Trump tariff effect The downturn in trade coincides with the revival of tariff policies by the Trump administration, which has targeted more than half of APEC’s member nations. Since the forum’s inception in 1989, regional average tariff rates had dropped from 17 per cent to 5.3 per cent by 2021, contributing to a more than nine-fold increase in merchandise trade. However, Trump’s recent tariff reinstatements threaten to reverse decades of economic integration. “We’re moving as quickly as we possibly can with folks who want to be ambitious,” US Trade Representative Jamieson Greer told CNBC before departing for Jeju, declining further comment on his bilateral meeting schedule, Reuters reported. The tariff measures have already triggered visible shifts in trade flows and investor sentiment. Economists warn that if the US continues its protectionist stance, sectors such as manufacturing, electronics, and consumer goods could face long-term disruptions. Meanwhile, China’s Vice Commerce Minister Li Chenggang also attended the gathering. Although Reuters reports that no formal meeting with Greer has been confirmed, both sides had agreed to reduce steep tariffs during their initial face-to-face talks in Geneva on 10–11 May. WTO reform & bilateral deals The Jeju summit is also being viewed as a staging ground for broader discussions on World Trade Organization (WTO) reforms, a hot-button issue after Washington recently moved to pause US funding to the institution. The Trump administration has long accused the WTO of enabling China’s rise through what it terms “unfair export advantages.” Trade representatives are holding bilateral discussions on the sidelines of the summit, which forms part of the lead-up to the APEC leaders’ summit later this year in Gyeongju, South Korea. APEC, which accounts for 60 per cent of global GDP and half of global trade, remains a key pillar of global economic stability. But with tariff battles heating up and multilateralism on the defensive, the forum faces one of its most pivotal chapters yet.

APEC sounds alarm on sluggish trade growth amid escalating US tariff pressure

<p class="MsoNormal">In a significant move to strengthen trade ties with the United States, India has reportedly proposed a "zero-for-zero" tariff offer on select American imports, including steel, auto components, and pharmaceuticals. Reports suggest this proposal is aimed at accelerating the conclusion of a bilateral trade agreement with Washington before autumn.&nbsp;<o:p></o:p></p>
<h2 class="MsoNormal"><strong>India backs tariff-free deal with US</strong><o:p></o:p></h2>
<p class="MsoNormal">The duty-free access would apply only to imports within a specified quota, while volumes beyond that would face standard Indian tariffs. The Indian delegation reportedly presented this offer during trade discussions in Washington in late April. The proposal is seen as a strategic response to recent US tariff announcements. <br><br>However, in a shift on April 9, he paused their implementation to allow room for negotiations with key partners that includes India. Current trade discussions suggest positive momentum, with the US reportedly showing interest in finalising new deals under its revised tariff regime. <br><br>While no formal agreements have been reached yet, India is emerging as a priority in Washington&rsquo;s trade strategy, alongside countries like Japan and South Korea. With trump&rsquo;s deadline for implementing the paused tariffs approaching soon, the pressure is mounting to seal agreements quickly. <o:p></o:p></p>
<p class="MsoNormal">The India-US trade deal, if finalised, could offer substantial benefits for both sides by easing market access and protecting key domestic industries from future trade barriers. The deal would mark a critical step forward in India-US economic relations, fostering greater cooperation in industrial sectors.<o:p></o:p></p>
<p class="MsoNormal"><i>(With inputs from the agencies)<o:p></o:p></i></p>

Business & Economy: In a significant move to strengthen trade ties with the United States, India has reportedly proposed a "zero-for-zero" tariff offer on select American imports, including steel, auto components, and pharmaceuticals.

In a significant move to strengthen trade ties with the United States, India has reportedly proposed a "zero-for-zero" tariff offer on select American imports, including steel, auto components, and pharmaceuticals. Reports suggest this proposal is aimed at accelerating the conclusion of a bilateral trade agreement with Washington before autumn. India backs tariff-free deal with US The duty-free access would apply only to imports within a specified quota, while volumes beyond that would face standard Indian tariffs. The Indian delegation reportedly presented this offer during trade discussions in Washington in late April. The proposal is seen as a strategic response to recent US tariff announcements. However, in a shift on April 9, he paused their implementation to allow room for negotiations with key partners that includes India. Current trade discussions suggest positive momentum, with the US reportedly showing interest in finalising new deals under its revised tariff regime. While no formal agreements have been reached yet, India is emerging as a priority in Washington’s trade strategy, alongside countries like Japan and South Korea. With trump’s deadline for implementing the paused tariffs approaching soon, the pressure is mounting to seal agreements quickly. The India-US trade deal, if finalised, could offer substantial benefits for both sides by easing market access and protecting key domestic industries from future trade barriers. The deal would mark a critical step forward in India-US economic relations, fostering greater cooperation in industrial sectors. (With inputs from the agencies)

India’s concessions for US trade deal

<div data-olk-copy-source="MailCompose">The fast-fashion e-commerce giants, Shein and Temu are recalibrating their global strategies as the US tightens its grip on low-cost imports. With new tariffs and the elimination of a critical trade exemption threatening their profits, both companies are aggressively expanding their digital presence in Europe and Latin America, according to Reuters.</div>
<div></div>
<div>In April, Shein increased its digital ad spending by 35 per cent in France and the United Kingdom, while China&rsquo;s PDD Group's Temu upped its ad investments by 40 per cent and 20 per cent in the same markets, respectively. This marks a deliberate shift away from the US, where the recent end of the &ldquo;de minimis&rdquo; exemption has raised the cost of doing business. According to Reuters, this exemption had previously allowed packages valued under $800 to enter the country tariff-free as a loophole Shein and Temu had used to rapidly scale their business by shipping cheap products directly to American consumers.</div>
<div></div>
<div>As per Reuters, the withdrawal of this benefit came into effect on May 2 and has already begun reshaping digital ad trends. Both companies slashed their advertising in the US last month in anticipation of the policy change. At the same time, they&rsquo;ve reportedly begun increasing prices to absorb the impact of new duties as a move that could hurt their appeal among cost-conscious American shoppers.</div>
<div></div>
<div>Singapore-based Shein and Temu were among the most aggressive ad buyers during the last holiday season, driving up digital ad bid rates as they fought to dominate the US market with ultra-affordable products like $12 dresses and $5 accessories. Their low pricing strategies had also disrupted legacy retailers such as Gap, H&amp;M, Zara, and even US dollar stores.</div>
<div></div>
<div>While their European push includes markets like Germany, Italy, and Spain, the UK and France have seen the most pronounced uptick in advertising. According to Reuters, Shein downloads in the UK surged by 25 per cent last month, while Temu downloads more than doubled. However, daily app usage saw only modest growth, with Shein&rsquo;s UK active user base rising 5 per cent and Temu&rsquo;s by 10 per cent.</div>
<div></div>
<div>Year-on-year, Temu ramped up its UK ad spending by 20 per cent and an astonishing 115 per cent in France, while Shein saw a 100 per cent rise in the UK and 45 per cent in France, as per Reuters data from Sensor Tower.</div>
<div></div>
<h2><b>Brazil Becomes the Next Battleground</b><b></b></h2>
<div>The rivalry is also heating up in Latin America. According to Reuters, Shein boosted its ad spending in Brazil by 140 per cent compared to last April. The company, which manufactures locally in Brazil to better serve Latin American markets, is facing increasing competition from Temu, which is preparing for a formal launch in the region this June.</div>
<div></div>
<div>Reuters also reported that Temu&rsquo;s Brazilian ad spending skyrocketed 800-fold year-on-year, following a playbook it used when it entered the US market in September 2022. As noted by Kara Lee, brand and digital analyst at Sensor Tower, "both companies appear to be employing similar market penetration strategies: spend aggressively, dominate visibility, and localize production".</div>
<div></div>
<h2><b>Trump Tariffs Hit US Fashion Economy</b></h2>
<div>The ramifications of these trade shifts go far beyond Shein and Temu. The broader US fashion industry is now bracing for a significant economic impact. The American apparel market projected to be worth $365.7 billion in 2025 which stands to lose up to $18 billion in revenue due to the elimination of the de minimis exemption and the broader tariff regime, according to an analysis by the National Retail Federation and Trade Partnership Worldwide.</div>
<div></div>
<div>As per data cited by eMarketer, retail apparel prices are expected to rise by at least 8 per cent due to retaliatory tariffs, and potentially as much as 17 per cent when all proposed duties are considered. These cost increases will likely hit low- to middle-income families hardest, particularly those who rely on affordable fashion options. While some US retailers may benefit from reduced competition; the immediate outlook remains uncertain. Supply chains are being restructured, logistics costs are climbing, and price-sensitive shoppers are becoming harder to retain all consequences of a global fashion market jolted by protectionist trade policies.</div>
<div></div>
<div></div>

Business & Economy: Shein and Temu are aggressively expanding their digital presence in Europe and Latin America amid Trump tariff escalation.

The fast-fashion e-commerce giants, Shein and Temu are recalibrating their global strategies as the US tightens its grip on low-cost imports. With new tariffs and the elimination of a critical trade exemption threatening their profits, both companies are aggressively expanding their digital presence in Europe and Latin America, according to Reuters. In April, Shein increased its digital ad spending by 35 per cent in France and the United Kingdom, while China’s PDD Group's Temu upped its ad investments by 40 per cent and 20 per cent in the same markets, respectively. This marks a deliberate shift away from the US, where the recent end of the “de minimis” exemption has raised the cost of doing business. According to Reuters, this exemption had previously allowed packages valued under $800 to enter the country tariff-free as a loophole Shein and Temu had used to rapidly scale their business by shipping cheap products directly to American consumers. As per Reuters, the withdrawal of this benefit came into effect on May 2 and has already begun reshaping digital ad trends. Both companies slashed their advertising in the US last month in anticipation of the policy change. At the same time, they’ve reportedly begun increasing prices to absorb the impact of new duties as a move that could hurt their appeal among cost-conscious American shoppers. Singapore-based Shein and Temu were among the most aggressive ad buyers during the last holiday season, driving up digital ad bid rates as they fought to dominate the US market with ultra-affordable products like $12 dresses and $5 accessories. Their low pricing strategies had also disrupted legacy retailers such as Gap, H&M, Zara, and even US dollar stores. While their European push includes markets like Germany, Italy, and Spain, the UK and France have seen the most pronounced uptick in advertising. According to Reuters, Shein downloads in the UK surged by 25 per cent last month, while Temu downloads more than doubled. However, daily app usage saw only modest growth, with Shein’s UK active user base rising 5 per cent and Temu’s by 10 per cent. Year-on-year, Temu ramped up its UK ad spending by 20 per cent and an astonishing 115 per cent in France, while Shein saw a 100 per cent rise in the UK and 45 per cent in France, as per Reuters data from Sensor Tower. Brazil Becomes the Next Battleground The rivalry is also heating up in Latin America. According to Reuters, Shein boosted its ad spending in Brazil by 140 per cent compared to last April. The company, which manufactures locally in Brazil to better serve Latin American markets, is facing increasing competition from Temu, which is preparing for a formal launch in the region this June. Reuters also reported that Temu’s Brazilian ad spending skyrocketed 800-fold year-on-year, following a playbook it used when it entered the US market in September 2022. As noted by Kara Lee, brand and digital analyst at Sensor Tower, "both companies appear to be employing similar market penetration strategies: spend aggressively, dominate visibility, and localize production". Trump Tariffs Hit US Fashion Economy The ramifications of these trade shifts go far beyond Shein and Temu. The broader US fashion industry is now bracing for a significant economic impact. The American apparel market projected to be worth $365.7 billion in 2025 which stands to lose up to $18 billion in revenue due to the elimination of the de minimis exemption and the broader tariff regime, according to an analysis by the National Retail Federation and Trade Partnership Worldwide. As per data cited by eMarketer, retail apparel prices are expected to rise by at least 8 per cent due to retaliatory tariffs, and potentially as much as 17 per cent when all proposed duties are considered. These cost increases will likely hit low- to middle-income families hardest, particularly those who rely on affordable fashion options. While some US retailers may benefit from reduced competition; the immediate outlook remains uncertain. Supply chains are being restructured, logistics costs are climbing, and price-sensitive shoppers are becoming harder to retain all consequences of a global fashion market jolted by protectionist trade policies.

Shein and Temu pivot to Europe as the US tariffs threaten fast-fashion fortunes

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

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

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

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

<p>Canadian comedian Matthew Puzhitsky has suggested an off track and a viral solution for his country to tackle the trade war with the US President Donald Trump. He suggested to ban Pornhub - a Canadian platform for X-rated videos and most visited in the US.&nbsp;</p>
<p><strong>Also read: <a href="https://www.wionews.com/world/canada-pm-elect-mark-carney-vows-maximum-impact-us-tariffs-response-8844505">'Until Americans show us respect': Canada PM-elect Carney vows 'maximum impact' response to US tariffs</a></strong></p>
<p>Puzhitsky called the suggestion "Canda's nuclear power" against Trump's "trade war".</p>
<p>&ldquo;If Canada could ban Pornhub in the states, we win the trade war. That&rsquo;s it. There is no trade war,&rdquo; the Toronto stand-up comedian told The New York Post.</p>
<p><strong>Also read: <a href="https://www.wionews.com/world/no-legacy-justin-trudeau-jeered-and-booed-as-he-leaves-parliament-for-last-time-as-canada-pm-watch-video-8852731">'No Legacy': Justin Trudeau jeered and booed as he leaves parliament for last time as Canada PM | Watch video</a></strong></p>
<p>Since his video went viral on social media, a petition has been launched by Canadians urging authorities to block the adult website for US users. People said that the move would be a &ldquo;peaceful yet powerful&rdquo; response to the US. Although, the petition has so far just gained a few dozen signatures.&nbsp;</p>
<blockquote class="twitter-tweet" data-media-max-width="560">
<p lang="en" dir="ltr">TRADE WARS: Stand-up comedian Matthew Puzhitsky's plan for Canada to fight back against Trump<br><br>Now there's a petition calling on Carney to block site as 'peaceful yet powerful' response<br><br>Anyone worried? <a href="https://t.co/Y23wt2bxWX">pic.twitter.com/Y23wt2bxWX</a></p>
&mdash; Letts tv (@letts_tv) <a href="https://twitter.com/letts_tv/status/1900935077225267596?ref_src=twsrc%5Etfw">March 15, 2025</a></blockquote>
<p>
<script async="" src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</p>
<h2>'Canadians wouldn&rsquo;t do that to us, would they?'&nbsp;</h2>
<p><strong>Also read: <a href="https://www.wionews.com/world/canada-launches-wto-complaint-on-us-steel-aluminium-tariffs-8851737">Canada launches WTO complaint on US steel, aluminium tariffs</a></strong></p>
<p>Meanwhile, people in US seemed not-so-happy with the suggestions by the Canadians as some New Yorkers talked to The Post and shared their "concerns".&nbsp;</p>
<p>&ldquo;If they take away my access to Pornhub, I&rsquo;m moving out of the US,&rdquo; one US citizen told the media outlet.&nbsp;</p>
<p>&ldquo;Canadians wouldn&rsquo;t do that to us&hellip;would they?&rdquo; another asked expressing disbelief.&nbsp;</p>
<p><strong>Also read: <a href="https://www.wionews.com/world/mark-carney-justin-trudeau-sworn-in-as-canadas-new-prime-minister-vows-to-get-straight-to-work-8854150">'Will get straight to work': Mark Carney sworn in as Canada&rsquo;s new prime minister</a></strong></p>
<p>&ldquo;I thought they were supposed to be nice," they added.&nbsp;</p>
<p>&ldquo;Let&rsquo;s not be hasty Canada!&rdquo; a man replied on the suggestion.&nbsp;</p>
<p><em>(With inputs from agencies)</em></p>

WORLD | Canadian comedian Matthew Puzhitsky has suggested an off track but not viral solution for his country to tackle the trade war with the US President Donald Trump.

Canadian comedian Matthew Puzhitsky has suggested an off track and a viral solution for his country to tackle the trade war with the US President Donald Trump. He suggested to ban Pornhub - a Canadian platform for X-rated videos and most visited in the US. Also read: 'Until Americans show us respect': Canada PM-elect Carney vows 'maximum impact' response to US tariffs Puzhitsky called the suggestion "Canda's nuclear power" against Trump's "trade war". “If Canada could ban Pornhub in the states, we win the trade war. That’s it. There is no trade war,” the Toronto stand-up comedian told The New York Post. Also read: 'No Legacy': Justin Trudeau jeered and booed as he leaves parliament for last time as Canada PM | Watch video Since his video went viral on social media, a petition has been launched by Canadians urging authorities to block the adult website for US users. People said that the move would be a “peaceful yet powerful” response to the US. Although, the petition has so far just gained a few dozen signatures. TRADE WARS: Stand-up comedian Matthew Puzhitsky's plan for Canada to fight back against Trump Now there's a petition calling on Carney to block site as 'peaceful yet powerful' response Anyone worried? pic.twitter.com/Y23wt2bxWX — Letts tv (@letts_tv) March 15, 2025 'Canadians wouldn’t do that to us, would they?' Also read: Canada launches WTO complaint on US steel, aluminium tariffs Meanwhile, people in US seemed not-so-happy with the suggestions by the Canadians as some New Yorkers talked to The Post and shared their "concerns". “If they take away my access to Pornhub, I’m moving out of the US,” one US citizen told the media outlet. “Canadians wouldn’t do that to us…would they?” another asked expressing disbelief. Also read: 'Will get straight to work': Mark Carney sworn in as Canada’s new prime minister “I thought they were supposed to be nice," they added. “Let’s not be hasty Canada!” a man replied on the suggestion. (With inputs from agencies)

'Ban Pornhub in US': Canada's 'nuclear weapon' against Trump's trade war

<p>US President Donald Trump backed away from his latest threats to start a trade war with America's neighbours.&nbsp;Deals on no US tariffs for Mexico and Canada helped mark a positive step away from the brink, at least for another month.</p>
<p>Markets have been all over the place but going nowhere fast. Like the tariffs, they are back to square one. So far this week, the tariff story is trumping US payroll data as a driver.</p>
<h2><strong>Trump's tariff chaos driving global markets</strong></h2>
<p>Market moves continue to get pushed and pulled by the trump tariff on/off switch. That confirms that delayed tariff deals done to help avoid tariffs are good for risk exposure and growth.</p>
<p>The deep sell-off and the reversal in markets within 24 hours reflect Trump's dealmaking underscores that everything was negotiable.&nbsp;The latest news on Mexico and Canada is certainly a glass half full. However, the worry is that the can is being kicked down the road.</p>
<p>For now, the deal has extended the tariff drama for another month. But the real question now is: does Trump have clay feet?&nbsp;Is he blinking after the chaos and deep sell-off in markets? Trump is also under fire over his exercise of power.</p>
<p>On Monday, Trump sought to allay one of the most major recent scandals: Musk's access to treasury systems that oversee trillions of dollars of payments authorised by Congress.</p>
<p>This was in the midst of Trump's first weeks in office, during which some of his actions were deemed unconstitutional by legal experts.&nbsp;Trump stated that he has authorised the Tesla co-founder to oversee American government expenditures before payments.</p>
<p>However, he stressed that Musk does not have the authority to halt payments unilaterally without authorisation.&nbsp;The criticism, though, is of the access Musk has and the platform to use this to benefit many of his own businesses.</p>
<p><em>(With the inputs from the agencies)</em></p>

Business & Economy: Market moves continue to get pushed and pulled by the trump tariff on/off switch. Markets have been all over the place but going nowhere fast. 

US President Donald Trump backed away from his latest threats to start a trade war with America's neighbours. Deals on no US tariffs for Mexico and Canada helped mark a positive step away from the brink, at least for another month. Markets have been all over the place but going nowhere fast. Like the tariffs, they are back to square one. So far this week, the tariff story is trumping US payroll data as a driver. Trump's tariff chaos driving global markets Market moves continue to get pushed and pulled by the trump tariff on/off switch. That confirms that delayed tariff deals done to help avoid tariffs are good for risk exposure and growth. The deep sell-off and the reversal in markets within 24 hours reflect Trump's dealmaking underscores that everything was negotiable. The latest news on Mexico and Canada is certainly a glass half full. However, the worry is that the can is being kicked down the road. For now, the deal has extended the tariff drama for another month. But the real question now is: does Trump have clay feet? Is he blinking after the chaos and deep sell-off in markets? Trump is also under fire over his exercise of power. On Monday, Trump sought to allay one of the most major recent scandals: Musk's access to treasury systems that oversee trillions of dollars of payments authorised by Congress. This was in the midst of Trump's first weeks in office, during which some of his actions were deemed unconstitutional by legal experts. Trump stated that he has authorised the Tesla co-founder to oversee American government expenditures before payments. However, he stressed that Musk does not have the authority to halt payments unilaterally without authorisation. The criticism, though, is of the access Musk has and the platform to use this to benefit many of his own businesses. (With the inputs from the agencies)

The tariff on/off switch reflects bluster diplomacy

<p>US President Donald Trump agreed to pause his new tariffs on Canada and Mexico on Monday (Feb 3) after a talk with the heads of both countries. This is the third time in two weeks that Trump has paused his 27 per cent tariffs plan on the US's closest economic partners.&nbsp;</p>
<p><strong>Also read: <a href="https://www.wionews.com/world/us-president-trump-warns-of-more-tariffs-on-china-says-talks-expected-within-24-hours-beijing-says-no-winner-in-a-trade-war-8687954">Trump warns of more tariffs on China, says talks expected within 24 hours; Beijing says &lsquo;no winner in trade war&rsquo;</a></strong></p>
<p>Taking to social media, Trump wrote, &ldquo;I am very pleased with this initial outcome, and the Tariffs announced on Saturday will be paused for a 30-day period to see whether or not a final economic deal with Canada can be structured."&nbsp;</p>
<p><iframe width="600" style="max-width: 100%; border: 0;" src="https://truthsocial.com/@realDonaldTrump/113942189236610107/embed" class="truthsocial-embed" allowfullscreen="allowfullscreen"></iframe>
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<p>He said, "FAIRNESS FOR ALL!&rdquo;&nbsp;</p>
<p><strong>Also read: <a href="https://www.wionews.com/world/us-president-donald-trump-executive-order-us-treasury-department-sovereign-wealth-fund-tiktok-8687925">Trump signs executive order to create US sovereign wealth fund, says it may 'buy' TikTok</a></strong></p>
<p>The US president said that the Canadian PM has agreed to ensure the border safety of the United States. He said, "Canada will implement their $1.3 Billion Border plan, and as per Prime Minister Trudeau, will be, &ldquo;reinforcing the Border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl," adding that around 10,000 frontline personnel will be deployed to protect the border.&nbsp;</p>
<p>"As President, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that," Trump added.&nbsp;</p>
<p>Canadian Prime Minister Justin Trudeau posted on the social media platform X that a pause would occur while his country would work "together" with the US to launch a &ldquo;Canada-US Joint Strike Force to combat organized crime, fentanyl and money laundering.&rdquo;</p>
<p><strong>Also read: <a href="https://www.wionews.com/world/pm-modi-to-travel-to-us-next-week-meet-president-donald-trump-8687911">PM Modi to travel to US next week, meet President Donald Trump</a></strong></p>
<p>Meanwhile, after a "friendly" conversation with Mexican President Claudia Sheinbaum, Trump said Mexico has "agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States."&nbsp;</p>
<p>&nbsp;</p>
<p><iframe width="600" style="max-width: 100%; border: 0;" src="https://truthsocial.com/@realDonaldTrump/113940711907400754/embed" class="truthsocial-embed" allowfullscreen="allowfullscreen"></iframe></p>
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<p><strong>WATCH:&nbsp;<a href="https://www.wionews.com/videos/donald-trump-pauses-tariffs-on-mexico-for-one-month-8687899">Donald Trump pauses tariffs on Mexico for one month</a></strong></p>
<p>The pause of the new duties came for both Canada and Mexico, while t<span>he 10 per cent tariff on China is set to go into effect as scheduled on Tuesday.</span></p>
<p><em>(With inputs from agencies)</em></p>
<p>&nbsp;</p>

World | US President Donald Trump agreed to pause his new tariffs on Canada and Mexico on Monday (Feb 3) after a talk with the supremos of both countries. 


US President Donald Trump agreed to pause his new tariffs on Canada and Mexico on Monday (Feb 3) after a talk with the heads of both countries. This is the third time in two weeks that Trump has paused his 27 per cent tariffs plan on the US's closest economic partners. Also read: Trump warns of more tariffs on China, says talks expected within 24 hours; Beijing says ‘no winner in trade war’ Taking to social media, Trump wrote, “I am very pleased with this initial outcome, and the Tariffs announced on Saturday will be paused for a 30-day period to see whether or not a final economic deal with Canada can be structured." He said, "FAIRNESS FOR ALL!” Also read: Trump signs executive order to create US sovereign wealth fund, says it may 'buy' TikTok The US president said that the Canadian PM has agreed to ensure the border safety of the United States. He said, "Canada will implement their $1.3 Billion Border plan, and as per Prime Minister Trudeau, will be, “reinforcing the Border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl," adding that around 10,000 frontline personnel will be deployed to protect the border. "As President, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that," Trump added. Canadian Prime Minister Justin Trudeau posted on the social media platform X that a pause would occur while his country would work "together" with the US to launch a “Canada-US Joint Strike Force to combat organized crime, fentanyl and money laundering.” Also read: PM Modi to travel to US next week, meet President Donald Trump Meanwhile, after a "friendly" conversation with Mexican President Claudia Sheinbaum, Trump said Mexico has "agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States." WATCH: Donald Trump pauses tariffs on Mexico for one month The pause of the new duties came for both Canada and Mexico, while the 10 per cent tariff on China is set to go into effect as scheduled on Tuesday. (With inputs from agencies)

'Fairness for all': Donald Trump pauses tariffs on Canada and Mexico for 30 days

<p><span class="region">New Delhi </span>
<p></p>
<p>India has started a sector-wise analysis and is drawing multiple scenarios to cope with any possible increase in tariffs on Indian products in US President-elect Donald Trump's second term in the White House. </p></p>
<p>"Ministries and departments are examining various scenarios, apprehending such a move by the US and possible remedies," said an Economic Times (ET) report on Thursday (Dec 19), citing a person familiar with the matter. </p>
<p>Trump on Tuesday (Dec 17) said that the US will impose reciprocal tariffs on Indian products as India imposes high tariffs on American goods. </p>
<p>An expert told ET that India will have to relook at some of the products on which tariffs could be tweaked to address the concerns of the US. </p>
<p><strong>Watch | Ukraine's Battle For Survival At Critical Crossroads</strong></p>
<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://cdn.thepublive.com/wion/static/kaltura_player/wion_video_player_iframe.html?thumbnail=wion/media/post_attachments/files/2024/12/19/1912_Manav_ukraine_830pm-1734627615-00000003.jpg&videourl=https://vodakm.zeenews.com/vod/WION/1912_Manav_ukraine_830pm.mp4/index.m3u8&duration=542&tags=russia,Ukraine,World News,WION" style="width:100%;max-width:560px;" width="560"></iframe></div>
<h2>'They tax us, we tax them'</h2>
<p>"If they tax us, we tax them the same amount," Trump told reporters at his Mar-a-Lago resort in Florida on Monday (Dec 16).</p>
<p>"The word reciprocal is important because if somebody charges us - India, we don't have to talk about our own - if India charges us 100 per cent, do we charge them nothing for the same? You know, they send in a bicycle, and we send them a bicycle. They charge us 100 and 200," he added. </p>
<p>"India charges a lot. Brazil charges a lot. If they want to charge us, that's fine, but we're going to charge them the same thing," he further said. </p>
<h2><strong>'The idea that...'</strong></h2>
<p>On November 30, Trump issued a stark warning to India and other BRICS nations, threatening them with a 100 per cent tariff if they continue to pursue other currencies to replace the US dollar for trade.</p>
<p><strong>Also read | <a href="https://www.wionews.com/world/luigi-mangione-suspect-in-unitedhealthcare-ceos-murder-agrees-to-return-to-new-york-for-trial-785373">Luigi Mangione, suspect in UnitedHealthcare CEO's murder, agrees to return to New York for trial</a></strong></p>
<p>BRICS is a group of economies like Brazil, Russia, India, China, and South Africa, alongside recent additions like Iran, Egypt, and the UAE.</p>
<p>"The idea that the BRICS countries are trying to move away from the Dollar while we stand by and watch is OVER, "Trump said. </p>
<p><em>(With inputs from agencies)</em></p>


"Ministries and departments are examining various scenarios, apprehending such a move by the US and possible remedies," said an Economic Times (ET) report on Thursday (Dec 19), citing a person familiar with the matter. 



New Delhi India has started a sector-wise analysis and is drawing multiple scenarios to cope with any possible increase in tariffs on Indian products in US President-elect Donald Trump's second term in the White House. "Ministries and departments are examining various scenarios, apprehending such a move by the US and possible remedies," said an Economic Times (ET) report on Thursday (Dec 19), citing a person familiar with the matter. Trump on Tuesday (Dec 17) said that the US will impose reciprocal tariffs on Indian products as India imposes high tariffs on American goods. An expert told ET that India will have to relook at some of the products on which tariffs could be tweaked to address the concerns of the US. Watch | Ukraine's Battle For Survival At Critical Crossroads 'They tax us, we tax them' "If they tax us, we tax them the same amount," Trump told reporters at his Mar-a-Lago resort in Florida on Monday (Dec 16). "The word reciprocal is important because if somebody charges us - India, we don't have to talk about our own - if India charges us 100 per cent, do we charge them nothing for the same? You know, they send in a bicycle, and we send them a bicycle. They charge us 100 and 200," he added. "India charges a lot. Brazil charges a lot. If they want to charge us, that's fine, but we're going to charge them the same thing," he further said. 'The idea that...' On November 30, Trump issued a stark warning to India and other BRICS nations, threatening them with a 100 per cent tariff if they continue to pursue other currencies to replace the US dollar for trade. Also read | Luigi Mangione, suspect in UnitedHealthcare CEO's murder, agrees to return to New York for trial BRICS is a group of economies like Brazil, Russia, India, China, and South Africa, alongside recent additions like Iran, Egypt, and the UAE. "The idea that the BRICS countries are trying to move away from the Dollar while we stand by and watch is OVER, "Trump said. (With inputs from agencies)

India preparing to tackle Trump's likely tariff on export goods: Report

<p><br />
India has started a sector-wise analysis and is drawing multiple scenarios to cope with any possible increase in tariffs on Indian products in US President-elect Donald Trump's second term in the White House.&nbsp;</p>

<p>"Ministries and departments are examining various scenarios, apprehending such a move by the US and possible remedies,"&nbsp;said an Economic Times (ET) report on Thursday (Dec 19), citing a person familiar with the matter.&nbsp;</p>

<p>Trump on Tuesday (Dec 17) said that the US will impose reciprocal tariffs on Indian products as India imposes high tariffs on American goods.&nbsp;</p>

<p>An expert told ET that India will have to relook at some of the products on which tariffs could be tweaked to address the concerns of the US.&nbsp;</p>

<p><strong>Watch |&nbsp;Ukraine's Battle For Survival At Critical Crossroads</strong></p>

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/russia-ukraine-war-ukraines-battle-for-survival-at-critical-crossroads-785385/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

<h2>'They tax us, we tax them'</h2>

<p>"If they tax us, we tax them the same amount," Trump told reporters at his Mar-a-Lago resort in Florida on Monday (Dec 16).</p>

<p>"The word reciprocal is important because if somebody charges us - India, we don't have to talk about our own - if India charges us 100 per cent, do we charge them nothing for the same? You know, they send in a bicycle, and we send them a bicycle. They charge us 100 and 200," he added.&nbsp;</p>

<p>"India charges a lot. Brazil charges a lot. If they want to charge us, that's fine, but we're going to charge them the same thing," he further said.&nbsp;</p>

<h2><strong>'The idea that...'</strong></h2>

<p>On November 30, Trump issued a stark warning to India and other BRICS nations, threatening them with a 100 per cent tariff if they continue to pursue other currencies to replace the US dollar for trade.</p>

<p><strong>Also read |&nbsp;<a href="https://www.wionews.com/world/luigi-mangione-suspect-in-unitedhealthcare-ceos-murder-agrees-to-return-to-new-york-for-trial-785373">Luigi Mangione, suspect in UnitedHealthcare CEO's murder, agrees to return to New York for trial</a></strong></p>

<p>BRICS is a group of economies like Brazil, Russia, India, China, and South Africa, alongside recent additions like Iran, Egypt, and the UAE.</p>

<p>"The idea that the BRICS countries are trying to move away from the Dollar while we stand by and watch is OVER, "Trump said.&nbsp;</p>

<p><em>(With inputs from agencies)</em></p>

<p>&nbsp;</p>


India has started a sector-wise analysis and is drawing multiple scenarios to cope with any possible increase in tariffs on Indian products in US President-elect Donald Trump's second term in the White House.

India has started a sector-wise analysis and is drawing multiple scenarios to cope with any possible increase in tariffs on Indian products in US President-elect Donald Trump's second term in the White House. "Ministries and departments are examining various scenarios, apprehending such a move by the US and possible remedies," said an Economic Times (ET) report on Thursday (Dec 19), citing a person familiar with the matter. Trump on Tuesday (Dec 17) said that the US will impose reciprocal tariffs on Indian products as India imposes high tariffs on American goods. An expert told ET that India will have to relook at some of the products on which tariffs could be tweaked to address the concerns of the US. Watch | Ukraine's Battle For Survival At Critical Crossroads 'They tax us, we tax them' "If they tax us, we tax them the same amount," Trump told reporters at his Mar-a-Lago resort in Florida on Monday (Dec 16). "The word reciprocal is important because if somebody charges us - India, we don't have to talk about our own - if India charges us 100 per cent, do we charge them nothing for the same? You know, they send in a bicycle, and we send them a bicycle. They charge us 100 and 200," he added. "India charges a lot. Brazil charges a lot. If they want to charge us, that's fine, but we're going to charge them the same thing," he further said. 'The idea that...' On November 30, Trump issued a stark warning to India and other BRICS nations, threatening them with a 100 per cent tariff if they continue to pursue other currencies to replace the US dollar for trade. Also read | Luigi Mangione, suspect in UnitedHealthcare CEO's murder, agrees to return to New York for trial BRICS is a group of economies like Brazil, Russia, India, China, and South Africa, alongside recent additions like Iran, Egypt, and the UAE. "The idea that the BRICS countries are trying to move away from the Dollar while we stand by and watch is OVER, "Trump said. (With inputs from agencies)

<p>China indicated a change in policy focus towards consumption for 2025 - increasing state borrowing and spending. The country stepped up its stimulus efforts to recharge the economy next year in anticipation of impending US tariffs.</p>

<p>Top officials led by President Xi Jinping announced their intention to increase the fiscal deficit target for next year. This is based on a report by China Central Television after the two-day huddle of the central economic work conference in Beijing.<br />
<br />
The Politiburo pledged to ease monetary policy, including interest rates, "at an appropriate time." Expectations show that China may deliver the biggest rate cuts in a decade in 2025.</p>

<p>The announcements come as part of Beijing's efforts to address ongoing deflation and slowing economic growth. This marks a departure from the "prudent" monetary policy that has been in place for 14 years.<br />
<br />
The state media said that China will prioritise "lifting consumption vigorously" and other targets to promote overall domestic demand in 2025. Despite the meeting's generally upbeat tone, it fails to outline any concrete measures to increase consumption.<br />
<br />
While the specifics of fiscal spending and borrowing will be revealed in March 2025, the direction is clear. This comes when China's economy faces several challenges, including its longest streak of deflation this century. This has put pressure on corporate profits and investment and added doubts about whether the country can achieve its 5 per cent growth target.<br />
<br />
Exports are unlikely to continue being a key engine of development in the wake of Donald Trump's re-election. This raises the prospect of a fresh trade war with the United States. There are also increasing domestic difficulties. There has been no indication that the home market slump would soon end.<br />
<br />
In response, politburo has committed to lifting domestic consumption as a top priority for 2025.</p>

<p><i>(With inputs from the agencies)</i></p>


China indicated a change in policy focus towards consumption for 2025 - increasing state borrowing and spending. The country stepped up its stimulus efforts to recharge the economy next year in anticipation of impending US tariffs.

China indicated a change in policy focus towards consumption for 2025 - increasing state borrowing and spending. The country stepped up its stimulus efforts to recharge the economy next year in anticipation of impending US tariffs. Top officials led by President Xi Jinping announced their intention to increase the fiscal deficit target for next year. This is based on a report by China Central Television after the two-day huddle of the central economic work conference in Beijing. The Politiburo pledged to ease monetary policy, including interest rates, "at an appropriate time." Expectations show that China may deliver the biggest rate cuts in a decade in 2025. The announcements come as part of Beijing's efforts to address ongoing deflation and slowing economic growth. This marks a departure from the "prudent" monetary policy that has been in place for 14 years. The state media said that China will prioritise "lifting consumption vigorously" and other targets to promote overall domestic demand in 2025. Despite the meeting's generally upbeat tone, it fails to outline any concrete measures to increase consumption. While the specifics of fiscal spending and borrowing will be revealed in March 2025, the direction is clear. This comes when China's economy faces several challenges, including its longest streak of deflation this century. This has put pressure on corporate profits and investment and added doubts about whether the country can achieve its 5 per cent growth target. Exports are unlikely to continue being a key engine of development in the wake of Donald Trump's re-election. This raises the prospect of a fresh trade war with the United States. There are also increasing domestic difficulties. There has been no indication that the home market slump would soon end. In response, politburo has committed to lifting domestic consumption as a top priority for 2025. (With inputs from the agencies)

China steps up stimulus to recharge growth ahead of US tariffs

<p>The United States is threatening a significant shake-up in its trade relations with Canada and Mexico. President-Elect Trump has proposed imposing tariffs of up to 25 per cent on key imports.</p>

<p>A Reuters report highlights that it includes crude oil, automobiles, and agricultural goods. This move comes amid escalating disputes over border security and trade imbalances.</p>

<p>For Canada, the potential tariffs on crude oil could severely impact the nation’s economy, given that over 80 per cent of its oil exports are destined for the US.</p>

<p>Meanwhile, Mexico, which relies heavily on automobile and agricultural exports to its northern neighbour, could face severe economic repercussions.</p>

<p>Mexican president Claudia Sheinbaum during a press conference highlighted and I quote “to one tariff will come another and so on, until we put our common businesses at risk. For example, Mexico’s main exporters to the United States are General Motors, Stellantis and Ford Motor Company, which came to Mexico 80 years ago, why put a tax on them that puts them at risk? It is not acceptable and would cause the US and Mexico inflation and job losses.”</p>

<p>The proposed tariffs would have far-reaching consequences.</p>

<p>Canadian crude oil exports, valued at over $90 billion annually, are a key target.</p>

<p>For Mexico, auto exports worth nearly $55 billion and agricultural exports exceeding $25 billion annually face risks.</p>

<p>Analysts warn that such tariffs could raise prices for American consumers, disrupt supply chains, and create uncertainty for businesses.</p>

<p>Trade-dependent sectors, including manufacturing and agriculture, could see job losses and reduced investments in all three countries.</p>

<p>Experts are also raising concerns about the broader impact on North American economic growth, which relies heavily on smooth cross-border trade.</p>

<p>Steven Ricchiuto, Mizuho Securities USA, chief economist, comments and I quote, "Clearly, there's a lot of automobile-related activity that goes on between the United States, Mexico and the United States and Canada. That's why I was saying it depends on how that's done, what's carved out, what's not carved out in terms of the tariffs. So, again, until you see the actual details, it's hard to make an assessment as to where we're actually going with this.”</p>

<p>This latest tariff proposal also carries political ramifications. Both nations are major trading partners for the US, with combined annual trade exceeding $1.5 trillion. Economists caution that disrupting these ties could weaken the region’s global competitiveness.</p>

<p>Meanwhile, the us administration defends the move, citing the need to address longstanding trade imbalances and border security concerns. As negotiations continue, the stakes remain high for North&nbsp;America’s economic and diplomatic future.</p>

<p><i>(With inputs from Reuters)</i></p>


The United States is threatening a significant shake-up in its trade relations with Canada and Mexico. President-Elect Trump has proposed imposing tariffs of up to 25 per cent on key imports.

The United States is threatening a significant shake-up in its trade relations with Canada and Mexico. President-Elect Trump has proposed imposing tariffs of up to 25 per cent on key imports. A Reuters report highlights that it includes crude oil, automobiles, and agricultural goods. This move comes amid escalating disputes over border security and trade imbalances. For Canada, the potential tariffs on crude oil could severely impact the nation’s economy, given that over 80 per cent of its oil exports are destined for the US. Meanwhile, Mexico, which relies heavily on automobile and agricultural exports to its northern neighbour, could face severe economic repercussions. Mexican president Claudia Sheinbaum during a press conference highlighted and I quote “to one tariff will come another and so on, until we put our common businesses at risk. For example, Mexico’s main exporters to the United States are General Motors, Stellantis and Ford Motor Company, which came to Mexico 80 years ago, why put a tax on them that puts them at risk? It is not acceptable and would cause the US and Mexico inflation and job losses.” The proposed tariffs would have far-reaching consequences. Canadian crude oil exports, valued at over $90 billion annually, are a key target. For Mexico, auto exports worth nearly $55 billion and agricultural exports exceeding $25 billion annually face risks. Analysts warn that such tariffs could raise prices for American consumers, disrupt supply chains, and create uncertainty for businesses. Trade-dependent sectors, including manufacturing and agriculture, could see job losses and reduced investments in all three countries. Experts are also raising concerns about the broader impact on North American economic growth, which relies heavily on smooth cross-border trade. Steven Ricchiuto, Mizuho Securities USA, chief economist, comments and I quote, "Clearly, there's a lot of automobile-related activity that goes on between the United States, Mexico and the United States and Canada. That's why I was saying it depends on how that's done, what's carved out, what's not carved out in terms of the tariffs. So, again, until you see the actual details, it's hard to make an assessment as to where we're actually going with this.” This latest tariff proposal also carries political ramifications. Both nations are major trading partners for the US, with combined annual trade exceeding $1.5 trillion. Economists caution that disrupting these ties could weaken the region’s global competitiveness. Meanwhile, the us administration defends the move, citing the need to address longstanding trade imbalances and border security concerns. As negotiations continue, the stakes remain high for North America’s economic and diplomatic future. (With inputs from Reuters)

US threatens tariffs on Canada and Mexico, sparking trade crisis

<p class="MsoNormal"><span lang="EN-GB">China is extending visa-free entry to nationals from nine additional countries, including South Korea, Norway, Finland, and Slovakia, as part of its broader efforts to revive its tourism industry and strengthen diplomatic ties as detailed in a South China Morning Post report.</span></p>

<p class="MsoNormal"><span lang="EN-GB">Starting November 8, citizens from these countries, along with Denmark, Iceland, Andorra, Monaco, and Liechtenstein, will be able to enter China without a visa for stays of up to 15 days for business, tourism, family visits, or transit purposes. This new policy will remain in effect until the end of 2025, increasing the total number of countries whose citizens enjoy visa-free access to 25, the South China Morning Post report detailed further.&nbsp;</span></p>

<p class="MsoNormal"><span lang="EN-GB">The announcement came on the heels of a recent visit by Slovak Prime Minister Robert Fico to Beijing, where he discussed enhancing economic cooperation with China, particularly in the clean energy sector. Fico expressed Slovakia’s interest in joining the “Friends of Peace” initiative, a China-Brazil-led group focused on resolving the war in Ukraine through political dialogue.</span></p>

<p class="MsoNormal"><span lang="EN-GB">His visit underscored Slovakia’s growing ties with China, despite tensions in the European Union, where the European Commission recently imposed tariffs on Chinese electric vehicles. Slovakia was one of the five EU nations that opposed these tariffs, viewing Chinese investments as crucial for its own growing electric vehicle industry.</span></p>

<p class="MsoNormal"><b style="mso-bidi-font-weight:normal"><span lang="EN-GB">China and European Union&nbsp;should maintain stable relations: Xi Jinping<o:p></o:p></span></b></p>

<p class="MsoNormal"><span lang="EN-GB">Chinese President Xi Jinping emphasised the importance of stable and mature relations between China and the European Union (EU), urging EU institutions to manage differences pragmatically and avoid politicizing trade and economic matters. Xi’s remarks reflect China’s ongoing efforts to balance its diplomatic outreach with its economic interests, particularly in light of recent EU tensions over trade policies.</span></p>

<p class="MsoNormal"><span lang="EN-GB">The visa relaxation is also seen as a step toward easing tensions in China’s relations with South Korea. While the two nations maintain strong economic ties, their political relationship has been strained in recent years due to South Korea’s growing security partnership with the United States, especially under the leadership of President Yoon Suk-yeol.</span></p>

<p class="MsoNormal"><span lang="EN-GB">Beijing has not had an ambassador in South Korea for more than three months, marking the longest diplomatic vacancy since the countries established formal ties. However, the new visa policy signals China’s desire to improve bilateral relations, even as its alignment with North Korea complicates matters.</span></p>

<p class="MsoNormal"><span lang="EN-GB">China has been working to revitalize its tourism sector, which was significantly impacted by the COVID-19 pandemic and the strict travel restrictions that followed. Since easing these restrictions last year, the country has seen a notable uptick in foreign visitors. In the first half of 2024, China welcomed 14.64 million international visitors, a 152 per cent increase from the previous year. The number of visa-free entries during this period reached 8.5 million, accounting for 58 per cent of total inbound travel.</span></p>

<p class="MsoNormal"><span lang="EN-GB">These figures highlight China’s growing appeal as a destination for business and leisure, with further increases expected as visa policies continue to ease.</span></p>

<p class="MsoNormal"><span lang="EN-GB">The move to extend visa-free access is part of China’s broader strategy to boost tourism and economic recovery while strengthening diplomatic relations with key global players, particularly in Europe and Asia.</span></p>

<p class="MsoNormal"><b style="mso-bidi-font-weight:normal"><span lang="EN-GB">China on Trump’s US Presidential victory<o:p></o:p></span></b></p>

<p class="MsoNormal"><span lang="EN-GB">According to a report by Reuters, China expressed respect for the US election result and congratulated Donald Trump on his victory while an official newspaper called for a "pragmatic" approach to China-US relations to handle their differences properly.</span></p>

<p class="MsoNormal"><span lang="EN-GB">Trump, a Republican who has promised to implement stiff tariffs, recaptured the White House with a sweeping victory over Democrat Kamala Harris in Tuesday's election.</span></p>

<p class="MsoNormal"><span lang="EN-GB">"We respect the choice of the American people and congratulate Mr. Trump on his election as president," a Chinese foreign ministry spokesperson said in a statement late on Wednesday.</span></p>

<p class="MsoNormal"><span lang="EN-GB">It is now to be seen how the two leading global economies will maintain relations going ahead, with Trump backing tariffs and trade restrictions that could complicate relations between both China and the US.</span></p>


China is extending visa-free entry to nationals from nine additional countries, including South Korea, Norway, Finland, and Slovakia, as part of its broader efforts to revive its tourism industry and strengthen diplomatic ties as detailed in a South China Morning Post report.

China is extending visa-free entry to nationals from nine additional countries, including South Korea, Norway, Finland, and Slovakia, as part of its broader efforts to revive its tourism industry and strengthen diplomatic ties as detailed in a South China Morning Post report. Starting November 8, citizens from these countries, along with Denmark, Iceland, Andorra, Monaco, and Liechtenstein, will be able to enter China without a visa for stays of up to 15 days for business, tourism, family visits, or transit purposes. This new policy will remain in effect until the end of 2025, increasing the total number of countries whose citizens enjoy visa-free access to 25, the South China Morning Post report detailed further. The announcement came on the heels of a recent visit by Slovak Prime Minister Robert Fico to Beijing, where he discussed enhancing economic cooperation with China, particularly in the clean energy sector. Fico expressed Slovakia’s interest in joining the “Friends of Peace” initiative, a China-Brazil-led group focused on resolving the war in Ukraine through political dialogue. His visit underscored Slovakia’s growing ties with China, despite tensions in the European Union, where the European Commission recently imposed tariffs on Chinese electric vehicles. Slovakia was one of the five EU nations that opposed these tariffs, viewing Chinese investments as crucial for its own growing electric vehicle industry. China and European Union should maintain stable relations: Xi Jinping Chinese President Xi Jinping emphasised the importance of stable and mature relations between China and the European Union (EU), urging EU institutions to manage differences pragmatically and avoid politicizing trade and economic matters. Xi’s remarks reflect China’s ongoing efforts to balance its diplomatic outreach with its economic interests, particularly in light of recent EU tensions over trade policies. The visa relaxation is also seen as a step toward easing tensions in China’s relations with South Korea. While the two nations maintain strong economic ties, their political relationship has been strained in recent years due to South Korea’s growing security partnership with the United States, especially under the leadership of President Yoon Suk-yeol. Beijing has not had an ambassador in South Korea for more than three months, marking the longest diplomatic vacancy since the countries established formal ties. However, the new visa policy signals China’s desire to improve bilateral relations, even as its alignment with North Korea complicates matters. China has been working to revitalize its tourism sector, which was significantly impacted by the COVID-19 pandemic and the strict travel restrictions that followed. Since easing these restrictions last year, the country has seen a notable uptick in foreign visitors. In the first half of 2024, China welcomed 14.64 million international visitors, a 152 per cent increase from the previous year. The number of visa-free entries during this period reached 8.5 million, accounting for 58 per cent of total inbound travel. These figures highlight China’s growing appeal as a destination for business and leisure, with further increases expected as visa policies continue to ease. The move to extend visa-free access is part of China’s broader strategy to boost tourism and economic recovery while strengthening diplomatic relations with key global players, particularly in Europe and Asia. China on Trump’s US Presidential victory According to a report by Reuters, China expressed respect for the US election result and congratulated Donald Trump on his victory while an official newspaper called for a "pragmatic" approach to China-US relations to handle their differences properly. Trump, a Republican who has promised to implement stiff tariffs, recaptured the White House with a sweeping victory over Democrat Kamala Harris in Tuesday's election. "We respect the choice of the American people and congratulate Mr. Trump on his election as president," a Chinese foreign ministry spokesperson said in a statement late on Wednesday. It is now to be seen how the two leading global economies will maintain relations going ahead, with Trump backing tariffs and trade restrictions that could complicate relations between both China and the US.

China expands visa-free access for 9 more countries; congratulates Trump for victory

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<p>A California professor has created an app that may help US wean itself off Chinese goods in an easier and more efficient way. The app, designed by Kyle Handley, associate professor of economics at the University of California San Diego School of Global Policy and Strategy (GPS), enables users to see what goods will&nbsp;be impacted&nbsp;by the recent US tariffs on China and how can buyers shift their supply chains to gain access to cheaper alternatives from other nations.</p>

<p>The Biden administration had introduced additional tariffs on Chinese goods, including electric vehicles, semiconductors, solar cells and batteries, earlier this month.</p>

<p><strong>Also read:&nbsp;<a data-ved="2ahUKEwjoroi0mauGAxV0zDgGHQMDCgIQxfQBKAB6BAgREAE" href="https://www.wionews.com/business-economy/ev-growth-in-china-us-could-lead-to-slowing-of-gasoline-demand-this-year-718430" jsname="YKoRaf" ping="/url?sa=t&amp;source=web&amp;rct=j&amp;opi=89978449&amp;url=https://www.wionews.com/business-economy/ev-growth-in-china-us-could-lead-to-slowing-of-gasoline-demand-this-year-718430&amp;ved=2ahUKEwjoroi0mauGAxV0zDgGHQMDCgIQxfQBKAB6BAgREAE">EV growth in China, US could lead to slowing of gasoline demand this year</a></strong></p>

<p>So, Handley created the Biden Tariff Analyzer App to help governments, suppliers and customers identify vulnerabilities in supply chains and cheaper alternatives for Chinese goods.&nbsp;For instance, the app will provide the top 10 alternative suppliers of each product attracting higher duty&nbsp;if imported from China.</p>

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<p dir="ltr" lang="en">.<a href="https://twitter.com/KyleLHandley?ref_src=twsrc%5Etfw">@KyleLHandley</a> developed an app analyzing the new Biden tariffs on China. It is a tool for businesses and governments to identify quickly what problem imports will be and whether alternative source countries are available <a href="https://twitter.com/GPS_UCSD?ref_src=twsrc%5Etfw">@GPS_UCSD</a> <a href="https://twitter.com/UCSanDiego?ref_src=twsrc%5Etfw">@UCSanDiego</a> <a href="https://t.co/fHrvzkwsk8">https://t.co/fHrvzkwsk8</a></p>
— Christine Clark (@christineeclark) <a href="https://twitter.com/christineeclark/status/1794076154032451963?ref_src=twsrc%5Etfw">May 24, 2024</a></blockquote>
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<p>“The new tariffs are likely politically motivated by the administration, so that it can appear to be&nbsp;‘tough on China’,”&nbsp;said Handley.&nbsp;“For example, the administration placed a 100 per cent tariff on electric vehicles (EVs), yet the US imports only 2 per cent of EVs from China,”&nbsp;he adds.</p>

<p>However, challenges remain. The app reveals that non-Chinese alternatives are difficult&nbsp;to find&nbsp;for some products, which may impede&nbsp;Washington's&nbsp;efforts to reduce its dependence on the communist nation.</p>

<p>For instance, the US introduced a 25 per cent tariff on permanent magnets, which&nbsp;are&nbsp;used&nbsp;in batteries and other consumer goods.&nbsp;Now,&nbsp;the problem is that China manufactures about 80 per cent of these magnets.</p>

<p><strong>Also read:&nbsp;<a data-ved="2ahUKEwjoroi0mauGAxV0zDgGHQMDCgIQxfQBKAB6BAgHEAE" href="https://www.wionews.com/india-news/india-china-may-engage-in-armed-conflict-amid-strained-ties-us-intelligence-assessment-notes-699477" jsname="YKoRaf" ping="/url?sa=t&amp;source=web&amp;rct=j&amp;opi=89978449&amp;url=https://www.wionews.com/india-news/india-china-may-engage-in-armed-conflict-amid-strained-ties-us-intelligence-assessment-notes-699477&amp;ved=2ahUKEwjoroi0mauGAxV0zDgGHQMDCgIQxfQBKAB6BAgHEAE">India, China may engage in `armed conflict` amid strained ties, claims US intelligence assessment</a></strong></p>

<p>“This could be because the administration&nbsp;doesn’t&nbsp;know themselves where we could get enough graphite or permanent magnets needed to produce enough batteries to meet demand,”&nbsp;Handley said.&nbsp;</p>

<p>“The reality is these tariffs may be pushed out even further in time because Biden is urging our allies to also be tough on China when it comes to trade. If everyone shifts toward Japan, for example, for imports of permanent magnets and Japan&nbsp;can’t&nbsp;ramp up quickly from its 3 per cent market share, then we will have a yet another supply chain problem,”&nbsp;he added.</p>

<p><em>(With inputs from agencies)</em></p>


A California professor has created an app that may help US wean itself off Chinese goods in an easier and more efficient way. The app, designed by Kyle Handley, associate professor of economics at the University of California San Diego School of Global Policy and Strategy (GPS), enables users to see what goods will be impacted by the recent US tariffs on China and how can buyers shift their supply chains to gain access to cheaper alternatives from other nations.

A California professor has created an app that may help US wean itself off Chinese goods in an easier and more efficient way. The app, designed by Kyle Handley, associate professor of economics at the University of California San Diego School of Global Policy and Strategy (GPS), enables users to see what goods will be impacted by the recent US tariffs on China and how can buyers shift their supply chains to gain access to cheaper alternatives from other nations. The Biden administration had introduced additional tariffs on Chinese goods, including electric vehicles, semiconductors, solar cells and batteries, earlier this month. Also read: EV growth in China, US could lead to slowing of gasoline demand this year So, Handley created the Biden Tariff Analyzer App to help governments, suppliers and customers identify vulnerabilities in supply chains and cheaper alternatives for Chinese goods. For instance, the app will provide the top 10 alternative suppliers of each product attracting higher duty if imported from China. .@KyleLHandley developed an app analyzing the new Biden tariffs on China. It is a tool for businesses and governments to identify quickly what problem imports will be and whether alternative source countries are available @GPS_UCSD @UCSanDiego https://t.co/fHrvzkwsk8 — Christine Clark (@christineeclark) May 24, 2024 × “The new tariffs are likely politically motivated by the administration, so that it can appear to be ‘tough on China’,” said Handley. “For example, the administration placed a 100 per cent tariff on electric vehicles (EVs), yet the US imports only 2 per cent of EVs from China,” he adds. However, challenges remain. The app reveals that non-Chinese alternatives are difficult to find for some products, which may impede Washington's efforts to reduce its dependence on the communist nation. For instance, the US introduced a 25 per cent tariff on permanent magnets, which are used in batteries and other consumer goods. Now, the problem is that China manufactures about 80 per cent of these magnets. Also read: India, China may engage in `armed conflict` amid strained ties, claims US intelligence assessment “This could be because the administration doesn’t know themselves where we could get enough graphite or permanent magnets needed to produce enough batteries to meet demand,” Handley said. “The reality is these tariffs may be pushed out even further in time because Biden is urging our allies to also be tough on China when it comes to trade. If everyone shifts toward Japan, for example, for imports of permanent magnets and Japan can’t ramp up quickly from its 3 per cent market share, then we will have a yet another supply chain problem,” he added. (With inputs from agencies)

Biden Tariff Analyzer: US professor creates app to help identify non-Chinese suppliers

<p>The United States is increasing tariffs on <a href="https://www.wionews.com/business-economy/airbus-beats-goal-with-863-jet-deliveries-in-2019-ousts-boeing-from-top-spot-271445">Airbus planes</a> imported from Europe to 15 per cent, authorities announced, in a move, the aerospace giant said on Saturday was "deeply" regrettable.</p>

<p>Friday's decision to hike tariffs from March 18 "further escalates trade tensions between the US and the EU", the European aerospace giant said in a statement, adding it creates "more instability for US airlines that are already suffering from a shortage of aircraft."</p>

<p>The announcement from the office of the United States Trade Representative (USTR) came just days after President Donald Trump said it was time to talk "very seriously" about a trade deal with the European Union.</p>

<p>Duties have been at 10 per cent since October when Washington hit European products worth $7.5 billion with tariffs.</p>

<p><a href="https://www.wionews.com/business-economy/airbus-strikes-anti-corruption-deals-with-france-uk-us-277133">Also read: Airbus strikes anti-corruption deals with France, UK, US</a></p>

<p>"Airbus deeply regrets USTR's decision to increase tariffs on aircraft imported from the EU as well as the decision to maintain tariffs on goods from other sectors," the company said, referring to products -- including wine, cheese, coffee and olives &nbsp;-- which have been taxed at 25 per cent since October.</p>

<p>The latest decision also "ignores the many submissions made by US airlines, highlighting the fact that they -– and the US flying public -– will ultimately have to pay these tariffs," it added.</p>

<p><strong>'Ultimately harmful'</strong></p>

<p>The German finance ministry said it had taken note of the move by the United States, and reiterated its stance on tariffs.</p>

<p>"Our basic position is clear: we reject any unilateral increase in customs taxes," it said in a statement. "Customs taxes are ultimately harmful to everyone, including the USA."</p>

<p>Washington imposed punitive taxes on the $7.5 billion in European products after the World Trade Organization (WTO) gave the United States a green light to take retaliatory trade measures against the EU over its subsidies to European aerospace giant Airbus.</p>

<p>Industry executives in Europe and the United States are on tenterhooks awaiting each new announcement from trade authorities.</p>

<p>"It has become abundantly clear that tariffs on distilled spirits products are causing rough seas on both sides of the Atlantic," the Distilled Spirits Council of the United States said in a statement Friday.</p>

<p>The council called on authorities to withdraw 25 per cent taxes on American whiskeys in the EU, and 25 per cent taxes on liquors imported from five European countries, pointing to fears of a negative impact on the US economy and jobs.</p>

<p>But Trump, a real estate developer turned politician, sees tariffs as a negotiating tool.</p>

<p>After a trade war with China that lasted nearly two years and featured punishing reciprocal tariffs, Trump declared at the signing of a "phase one" trade deal with Beijing in January that it was a "momentous step ... righting the wrongs of the past."</p>

<p>He has now turned his sights to Europe as Washington brandishes the threat of taxing European auto imports, a move targeting Germany, Europe's biggest auto exporter.</p>

<p>Trump wants EU member states to further open their markets to American products, particularly agricultural goods.</p>

<p>He has also threatened to hike tariffs on French wine -- currently taxed at 25 per cent -- even further unless there is a deal on a digital tax which European nations want to impose on American giants such as Amazon and Facebook.</p>


The United States is increasing tariffs on Airbus planes imported from Europe to 15 per cent, authorities announced, in a move, the aerospace giant said on Saturday was "deeply" regrettable.

The United States is increasing tariffs on Airbus planes imported from Europe to 15 per cent, authorities announced, in a move, the aerospace giant said on Saturday was "deeply" regrettable. Friday's decision to hike tariffs from March 18 "further escalates trade tensions between the US and the EU", the European aerospace giant said in a statement, adding it creates "more instability for US airlines that are already suffering from a shortage of aircraft." The announcement from the office of the United States Trade Representative (USTR) came just days after President Donald Trump said it was time to talk "very seriously" about a trade deal with the European Union. Duties have been at 10 per cent since October when Washington hit European products worth $7.5 billion with tariffs. Also read: Airbus strikes anti-corruption deals with France, UK, US "Airbus deeply regrets USTR's decision to increase tariffs on aircraft imported from the EU as well as the decision to maintain tariffs on goods from other sectors," the company said, referring to products -- including wine, cheese, coffee and olives -- which have been taxed at 25 per cent since October. The latest decision also "ignores the many submissions made by US airlines, highlighting the fact that they -– and the US flying public -– will ultimately have to pay these tariffs," it added. 'Ultimately harmful' The German finance ministry said it had taken note of the move by the United States, and reiterated its stance on tariffs. "Our basic position is clear: we reject any unilateral increase in customs taxes," it said in a statement. "Customs taxes are ultimately harmful to everyone, including the USA." Washington imposed punitive taxes on the $7.5 billion in European products after the World Trade Organization (WTO) gave the United States a green light to take retaliatory trade measures against the EU over its subsidies to European aerospace giant Airbus. Industry executives in Europe and the United States are on tenterhooks awaiting each new announcement from trade authorities. "It has become abundantly clear that tariffs on distilled spirits products are causing rough seas on both sides of the Atlantic," the Distilled Spirits Council of the United States said in a statement Friday. The council called on authorities to withdraw 25 per cent taxes on American whiskeys in the EU, and 25 per cent taxes on liquors imported from five European countries, pointing to fears of a negative impact on the US economy and jobs. But Trump, a real estate developer turned politician, sees tariffs as a negotiating tool. After a trade war with China that lasted nearly two years and featured punishing reciprocal tariffs, Trump declared at the signing of a "phase one" trade deal with Beijing in January that it was a "momentous step ... righting the wrongs of the past." He has now turned his sights to Europe as Washington brandishes the threat of taxing European auto imports, a move targeting Germany, Europe's biggest auto exporter. Trump wants EU member states to further open their markets to American products, particularly agricultural goods. He has also threatened to hike tariffs on French wine -- currently taxed at 25 per cent -- even further unless there is a deal on a digital tax which European nations want to impose on American giants such as Amazon and Facebook.

Airbus 'deeply regrets' US tariff hike from 10% to 15%

<p>President Trump said today that "effective immediately" the US would be restoring "tariffs on all steel and aluminium" on Brazil and Argentina.</p>

<p>Trump blamed "massive devaluation of currencies" for the recent tariffs, adding, "the Federal Reserve should likewise act so that countries, of which there are many, no longer take advantage of our strong dollar by further devaluing their currencies."</p>

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<p dir="ltr" lang="en">Brazil and Argentina have been presiding over a massive devaluation of their currencies. which is not good for our farmers. Therefore, effective immediately, I will restore the Tariffs on all Steel &amp; Aluminum that is shipped into the U.S. from those countries. The Federal....</p>
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1201455858636472320?ref_src=twsrc%5Etfw">December 2, 2019</a></blockquote>
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<p>Trump said the devaluation was "not good for our farmers".</p>

<p>"US Markets are up as much as 21 per cent since the announcement of tariffs on 3/1/2018 - and the US is taking in massive amounts of money (and giving some to our farmers, who have been targeted by China)," the US president said in a tweet.</p>

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<p dir="ltr" lang="en">.....Reserve should likewise act so that countries, of which there are many, no longer take advantage of our strong dollar by further devaluing their currencies. This makes it very hard for our manufactures &amp; farmers to fairly export their goods. Lower Rates &amp; Loosen - Fed!</p>
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1201455859731238912?ref_src=twsrc%5Etfw">December 2, 2019</a></blockquote>
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<p>The US president said a strong dollar makes it "very hard for our manufactures &amp; farmers to fairly export their goods," while imploring the Federal Reserve to "lower rates &amp; loosen".</p>

<p>Trump has been fighting a tariff battle with China in the past one year with Beijing insisting US tariffs must be rolled back as part of any phase one trade deal with Washington.</p>

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<p dir="ltr" lang="en">U.S. Markets are up as much as 21% since the announcement of Tariffs on 3/1/2018 - and the U.S. is taking in massive amounts of money (and giving some to our farmers, who have been targeted by China)!</p>
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1201458758934781953?ref_src=twsrc%5Etfw">December 2, 2019</a></blockquote>
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<p>Last week, Trump had said the US was in the "final throes" of a deal which has hit the world economy amid global uncertainty.</p>

<p>Trump had warned that failure to get a trade deal with China will prompt "more tariffs".</p>

<p>"If we don’t make a deal with China, I’ll just raise the tariffs even higher," Trump had said.</p>

<p>Experts fear failure to reach a deal would hamper sales in the run-up to Christmas.</p>

<p>In September, Trump had imposed 15 per cent tariff on $125 billion of Chinese goods. According to reports, China has asked for the September 1 tariffs to be removed completely during trade talks with US officials.</p>


President Trump said today that "effective immediately" the US would be restoring "tariffs on all steel and aluminium" on Brazil and Argentina. Trump blamed "massive devaluation of currencies" for the recent tariffs, adding, "the Federal Reserve should likewise act so that countries, of which there are many, no longer take advantage of our strong dollar by further devaluing their currencies.

President Trump said today that "effective immediately" the US would be restoring "tariffs on all steel and aluminium" on Brazil and Argentina. Trump blamed "massive devaluation of currencies" for the recent tariffs, adding, "the Federal Reserve should likewise act so that countries, of which there are many, no longer take advantage of our strong dollar by further devaluing their currencies." Brazil and Argentina have been presiding over a massive devaluation of their currencies. which is not good for our farmers. Therefore, effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the U.S. from those countries. The Federal.... — Donald J. Trump (@realDonaldTrump) December 2, 2019 × Trump said the devaluation was "not good for our farmers". "US Markets are up as much as 21 per cent since the announcement of tariffs on 3/1/2018 - and the US is taking in massive amounts of money (and giving some to our farmers, who have been targeted by China)," the US president said in a tweet. .....Reserve should likewise act so that countries, of which there are many, no longer take advantage of our strong dollar by further devaluing their currencies. This makes it very hard for our manufactures & farmers to fairly export their goods. Lower Rates & Loosen - Fed! — Donald J. Trump (@realDonaldTrump) December 2, 2019 × The US president said a strong dollar makes it "very hard for our manufactures & farmers to fairly export their goods," while imploring the Federal Reserve to "lower rates & loosen". Trump has been fighting a tariff battle with China in the past one year with Beijing insisting US tariffs must be rolled back as part of any phase one trade deal with Washington. U.S. Markets are up as much as 21% since the announcement of Tariffs on 3/1/2018 - and the U.S. is taking in massive amounts of money (and giving some to our farmers, who have been targeted by China)! — Donald J. Trump (@realDonaldTrump) December 2, 2019 × Last week, Trump had said the US was in the "final throes" of a deal which has hit the world economy amid global uncertainty. Trump had warned that failure to get a trade deal with China will prompt "more tariffs". "If we don’t make a deal with China, I’ll just raise the tariffs even higher," Trump had said. Experts fear failure to reach a deal would hamper sales in the run-up to Christmas. In September, Trump had imposed 15 per cent tariff on $125 billion of Chinese goods. According to reports, China has asked for the September 1 tariffs to be removed completely during trade talks with US officials.

Effective immediately, US to restore steel & aluminium tariffs on Brazil, Argentina: Trump

<p>President <a href="https://www.wionews.com/world/effective-immediately-us-to-restore-steel-aluminum-tariffs-on-brazil-argentina-trump-265754">Donald Trump </a>struck back Monday at what he called unfair policies by <a href="https://www.wionews.com/world/brazils-president-blames-leonardo-dicaprio-for-financing-amazon-fires-offers-no-evidence-265337">Brazil </a>and Argentina, saying he is reinstating tariffs on steel and aluminium from those countries.</p>

<p>"Brazil and Argentina have been presiding over a massive devaluation of their currencies," which is hurting American farmers, he said on Twitter.</p>

<p>"Effective immediately, I will restore the Tariffs on all Steel &amp; Aluminum that is shipped into the US from those countries."</p>

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<p dir="ltr" lang="en">Brazil and Argentina have been presiding over a massive devaluation of their currencies. which is not good for our farmers. Therefore, effective immediately, I will restore the Tariffs on all Steel &amp; Aluminum that is shipped into the U.S. from those countries. The Federal....</p>
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1201455858636472320?ref_src=twsrc%5Etfw">December 2, 2019</a></blockquote>
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<p>Trump last year announced global tariffs of 25 per cent on steel and 10 per cent on aluminium but later approved exemptions for some countries, including Argentina and Brazil which agreed to quotas.</p>

<p>Brazilian President Jair Bolsonaro, who considers himself an ideological ally of Trump, said he would not hesitate to open a direct line to the White House to resolve the issue.</p>

<p>"I am going to talk to (Economy Minister) Paulo Guedes," Bolsonaro told reporters in Brasilia, adding that if needed "I have an open channel with" Trump.</p>

<p>Brazil is the second-largest supplier of steel to US markets behind Mexico.</p>

<p>And Brazil and Argentina have benefitted from the US trade war with China since they have stepped in to replace American exports of soybeans and other agricultural goods.</p>

<p>Bolsonaro earlier this month met with China's President Xi Jinping in Brasilia and said the Asian economic power is "becoming more and more part of Brazil's future."</p>

<p><strong>Economic impact&nbsp;</strong></p>

<p>Jose Urtubey, spokesman for Argentina's powerful UIA industrial lobby, said producers in the country will be harmed immediately by the tariffs.</p>

<p>With Argentina's "lack of competitiveness" as a producer, the fact that the United States had the lowest steel and aluminium tariffs was "beneficial," Urtubey said.</p>

<p>Brazil has teetered on the brink of recession this year and Argentina is again enmeshed in an economic crisis, which has led to the currencies of both countries weakening against the US dollar.</p>

<p>Bolsonaro's ultra-right government has promised to revive the nation's flagging economy with a massive stimulus plan, as well as pension and tax reforms, and the central bank has cut the key interest rate more than a dozen times since late 2016.</p>

<p>Trump views those moves as an effort to gain at the expense of the United States.</p>

<p>In his tweets, Trump also called on the Federal Reserve to "likewise act" so other nations no longer "take advantage of our strong dollar by further devaluing their currencies."&nbsp;</p>

<p>Amid a slowing global economy and the impact of Trump's wide-ranging trade offensive, mostly directed against China, the Fed has cut the benchmark interest rates three times this year.&nbsp;</p>

<p>But it has signalled it will stand back before deciding on any further moves.</p>

<p>Despite widespread complaints about the impact of the &nbsp;tariffs on US businesses and consumers, as well as the hit to farmers who have been the target of retaliation from trading partners, Trump claimed in his tweet on Monday that Washington has taken in "massive amounts of money" from the tariffs.</p>

<p>He also claimed that since imposing tariffs at the start of March 2018, US markets were "up as much as 21%." In fact, the benchmark stock index is up 14 per cent.</p>

<p>American steel has continued to suffer with overall employment edging downward and production halted at blast furnaces last month.</p>


President Donald Trump struck back Monday at what he called unfair policies by Brazil and Argentina, saying he is reinstating tariffs on steel and aluminium from those countries.

President Donald Trump struck back Monday at what he called unfair policies by Brazil and Argentina, saying he is reinstating tariffs on steel and aluminium from those countries. "Brazil and Argentina have been presiding over a massive devaluation of their currencies," which is hurting American farmers, he said on Twitter. "Effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the US from those countries." Brazil and Argentina have been presiding over a massive devaluation of their currencies. which is not good for our farmers. Therefore, effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the U.S. from those countries. The Federal.... — Donald J. Trump (@realDonaldTrump) December 2, 2019 × Trump last year announced global tariffs of 25 per cent on steel and 10 per cent on aluminium but later approved exemptions for some countries, including Argentina and Brazil which agreed to quotas. Brazilian President Jair Bolsonaro, who considers himself an ideological ally of Trump, said he would not hesitate to open a direct line to the White House to resolve the issue. "I am going to talk to (Economy Minister) Paulo Guedes," Bolsonaro told reporters in Brasilia, adding that if needed "I have an open channel with" Trump. Brazil is the second-largest supplier of steel to US markets behind Mexico. And Brazil and Argentina have benefitted from the US trade war with China since they have stepped in to replace American exports of soybeans and other agricultural goods. Bolsonaro earlier this month met with China's President Xi Jinping in Brasilia and said the Asian economic power is "becoming more and more part of Brazil's future." Economic impact Jose Urtubey, spokesman for Argentina's powerful UIA industrial lobby, said producers in the country will be harmed immediately by the tariffs. With Argentina's "lack of competitiveness" as a producer, the fact that the United States had the lowest steel and aluminium tariffs was "beneficial," Urtubey said. Brazil has teetered on the brink of recession this year and Argentina is again enmeshed in an economic crisis, which has led to the currencies of both countries weakening against the US dollar. Bolsonaro's ultra-right government has promised to revive the nation's flagging economy with a massive stimulus plan, as well as pension and tax reforms, and the central bank has cut the key interest rate more than a dozen times since late 2016. Trump views those moves as an effort to gain at the expense of the United States. In his tweets, Trump also called on the Federal Reserve to "likewise act" so other nations no longer "take advantage of our strong dollar by further devaluing their currencies." Amid a slowing global economy and the impact of Trump's wide-ranging trade offensive, mostly directed against China, the Fed has cut the benchmark interest rates three times this year. But it has signalled it will stand back before deciding on any further moves. Despite widespread complaints about the impact of the tariffs on US businesses and consumers, as well as the hit to farmers who have been the target of retaliation from trading partners, Trump claimed in his tweet on Monday that Washington has taken in "massive amounts of money" from the tariffs. He also claimed that since imposing tariffs at the start of March 2018, US markets were "up as much as 21%." In fact, the benchmark stock index is up 14 per cent. American steel has continued to suffer with overall employment edging downward and production halted at blast furnaces last month.

US re-imposes steel, aluminium tariffs on Brazil, Argentina

<p>The United States imposed tariffs on a record $7.5-billion worth of European Union goods on Friday, despite threats of retaliation, with Airbus, French wine and Scottish whiskies among the high-profile targets.</p>

<p>The tariffs, which took effect just after midnight in Washington (0401 GMT), came after talks between European officials and US trade representatives failed to win a last-minute reprieve.</p>

<p>The WTO-endorsed onslaught from US President Donald Trump also comes as Washington is mired in a trade war with China and could risk destabilising the global economy further.</p>

<p>In the line of fire are civilian aircraft from Britain, France, Germany and Spain -- the countries that formed Airbus -- which will now cost 10 per cent more when imported to the US.</p>

<p>But the tariffs also target consumer products such as French wine, which Trump had vowed to attack in recent months. Wine from France, Spain and Germany will now face 25 per cent tariffs.</p>

<p>Speaking in Washington hours before the tariffs were due to come into effect, France's Economy Minister Bruno Le Maire warned the move would have serious repercussions.</p>

<p>"Europe is ready to retaliate, in the framework of course of the WTO," he told reporters shortly after meeting with US Treasury Secretary Steven Mnuchin on the sidelines of the International Monetary Fund annual meetings.</p>

<p>"These decisions would have very negative consequences both from an economic and a political point of view."</p>

<p>Le Maire was due to meet US Trade Representative Robert Lighthizer later on Friday.</p>

<p>He also warned the US against starting another front in its trade conflicts and again called for a negotiated solution.</p>

<p>At a time when the global economy is slowing, "I think that our responsibility is to do our best to avoid that kind of conflict," Le Maire said.&nbsp;</p>

<p>The Europeans have long advocated negotiation over conflict and they themselves will be able to impose tariffs next year to punish the United States for subsidising Boeing.</p>

<p>But EU officials had already offered in July to call a truce on subsidies for planemakers, in which both sides would admit fault and agree to curtail state aid -- to no avail. The two sides have been involved in a row over the subsidies for 15 years.</p>

<p>The tariffs kick in just days after the United States was given the formal go-ahead by the World Trade Organization.</p>

<p>As recently as Wednesday, Trump singled out the Europeans for being unfair with the US on trade, but said his door was open to negotiate a settlement.</p>

<p><strong>'Very hard'</strong></p>

<p>The Europeans fear above all that Trump will impose heavy duties on imports of European cars around mid-November.&nbsp;</p>

<p>This would be a serious blow for the German automotive sector in particular, even if giants such as Volkswagen or BMW also manufacture in the United States.&nbsp;</p>

<p>"Our products are very hard to bring in (to Europe)" when Europeans easily import their cars into the United States, Trump said.</p>

<p>The Airbus-Boeing row is just one of several issues stoking transatlantic tensions that quickly descended into acrimony when Trump took office in 2017.</p>

<p>Trump embraced a protectionist agenda, slapping import duties on steel and aluminium from the EU and other allies, while also threatening tariffs on cars.</p>

<p>Trade groups in Europe such as winemakers, German tool manufacturers and whisky producers in Scotland have kept a clamour of protest, demanding Washington reverse tack.</p>

<p>The US leader and European Commission President Jean-Claude Juncker agreed in July 2018 to a ceasefire in the conflict to hold trade talks that have so far led nowhere.</p>

<p>The epic legal battle between Airbus and Boeing at the World Trade Organization began in 2004 when Washington accused Britain, France, Germany and Spain of providing illegal subsidies and grants to support the production of a range of Airbus products.</p>

<p>A year later, the EU alleged that Boeing had received $19.1 billion worth of prohibited subsidies from 1989 to 2006 from various branches of the US government.</p>

<p>The two cases were then tangled up in a legal quagmire, with each side being given partial vindication after a long series of appeals and counter appeals.</p>


The United States imposed tariffs on a record $7.5-billion worth of European Union goods on Friday, despite threats of retaliation, with Airbus, French wine and Scottish whiskies among the high-profile targets.

The United States imposed tariffs on a record $7.5-billion worth of European Union goods on Friday, despite threats of retaliation, with Airbus, French wine and Scottish whiskies among the high-profile targets. The tariffs, which took effect just after midnight in Washington (0401 GMT), came after talks between European officials and US trade representatives failed to win a last-minute reprieve. The WTO-endorsed onslaught from US President Donald Trump also comes as Washington is mired in a trade war with China and could risk destabilising the global economy further. In the line of fire are civilian aircraft from Britain, France, Germany and Spain -- the countries that formed Airbus -- which will now cost 10 per cent more when imported to the US. But the tariffs also target consumer products such as French wine, which Trump had vowed to attack in recent months. Wine from France, Spain and Germany will now face 25 per cent tariffs. Speaking in Washington hours before the tariffs were due to come into effect, France's Economy Minister Bruno Le Maire warned the move would have serious repercussions. "Europe is ready to retaliate, in the framework of course of the WTO," he told reporters shortly after meeting with US Treasury Secretary Steven Mnuchin on the sidelines of the International Monetary Fund annual meetings. "These decisions would have very negative consequences both from an economic and a political point of view." Le Maire was due to meet US Trade Representative Robert Lighthizer later on Friday. He also warned the US against starting another front in its trade conflicts and again called for a negotiated solution. At a time when the global economy is slowing, "I think that our responsibility is to do our best to avoid that kind of conflict," Le Maire said. The Europeans have long advocated negotiation over conflict and they themselves will be able to impose tariffs next year to punish the United States for subsidising Boeing. But EU officials had already offered in July to call a truce on subsidies for planemakers, in which both sides would admit fault and agree to curtail state aid -- to no avail. The two sides have been involved in a row over the subsidies for 15 years. The tariffs kick in just days after the United States was given the formal go-ahead by the World Trade Organization. As recently as Wednesday, Trump singled out the Europeans for being unfair with the US on trade, but said his door was open to negotiate a settlement. 'Very hard' The Europeans fear above all that Trump will impose heavy duties on imports of European cars around mid-November. This would be a serious blow for the German automotive sector in particular, even if giants such as Volkswagen or BMW also manufacture in the United States. "Our products are very hard to bring in (to Europe)" when Europeans easily import their cars into the United States, Trump said. The Airbus-Boeing row is just one of several issues stoking transatlantic tensions that quickly descended into acrimony when Trump took office in 2017. Trump embraced a protectionist agenda, slapping import duties on steel and aluminium from the EU and other allies, while also threatening tariffs on cars. Trade groups in Europe such as winemakers, German tool manufacturers and whisky producers in Scotland have kept a clamour of protest, demanding Washington reverse tack. The US leader and European Commission President Jean-Claude Juncker agreed in July 2018 to a ceasefire in the conflict to hold trade talks that have so far led nowhere. The epic legal battle between Airbus and Boeing at the World Trade Organization began in 2004 when Washington accused Britain, France, Germany and Spain of providing illegal subsidies and grants to support the production of a range of Airbus products. A year later, the EU alleged that Boeing had received $19.1 billion worth of prohibited subsidies from 1989 to 2006 from various branches of the US government. The two cases were then tangled up in a legal quagmire, with each side being given partial vindication after a long series of appeals and counter appeals.

US imposes record $7.5 billion tariffs on EU goods, targeting Airbus, wine and whisky

<p>There were signs of a thaw in frosty trade-war tensions between China and the US on Monday as President Donald Trump said delegations would "very shortly" resume talks and Beijing's top negotiator called for "calm".</p>

<p>The two sides have been embroiled in a <a href="https://www.wionews.com/world/us-president-trump-says-china-wants-to-negotiate-over-trade-war-245660">bruising year-long dispute</a> that has seen tariffs slapped on billions of dollars worth of goods in two-way trade, with the row escalating over the weekend.</p>

<p>But just three days after the announcement of further mutual tariff hikes, Trump told reporters at the G7 summit in France's Biarritz he had taken two "<a href="https://www.wionews.com/world/us-president-trump-says-china-wants-to-negotiate-over-trade-war-245660">very, very good" phone calls from Chinese officials</a>.</p>

<p>"China called last night... said let's get back to the table. So we'll be getting back to the table," he said on Monday, adding that "they want to make a deal".</p>

<p>Trump's comments followed moves by China's most powerful trade negotiator, Vice Premier Liu He, to take the edge off the soaring tensions.</p>

<p><strong>Watch: Trump slaps new tariffs on China, Additional 5% Tariff On Chinese Imports</strong></p>

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<p>"We are willing to solve the problem through consultation and cooperation with a calm attitude," said Liu, according to a report by Chinese news outlet Caixin.</p>

<p>"We firmly oppose the escalation of the trade war," he said, speaking at the opening ceremony of the 2019 Smart China Expo in the southwestern city of Chongqing.</p>

<p>US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin travelled to Shanghai in July for a round of trade talks, where discussions were described as "constructive" but ended with no announcements.</p>

<p>Monday's detente came after Trump increased tariffs on more than half-a-trillion dollars worth of imports in a new round of punitive measures that are roiling global markets.</p>

<p>The US announcement on Friday followed an earlier surprise notification from Beijing that it would introduce fresh tariffs on US goods worth $75 billion.</p>

<p>Some of these measures are due to take effect on September 1, with the rest to follow over the coming months.</p>

<p><strong>Currency tumbles</strong></p>

<p>On Twitter, Trump also told American firms to start looking for an alternative to production in China -- though he and his top aides later downplayed the idea.</p>

<p>Meanwhile, Chinese foreign ministry spokesman Geng Shuang said he was not aware of the calls mentioned by Trump and angrily criticised the latest tariffs at a regular press briefing in Beijing.</p>

<p>The US move "tramples on multilateral trade rules, damages the interests of China and the United States, threatens the security of the global industrial supply chain, drags down international trade and world economic growth", he said.</p>

<p>US allies have pressured Trump at the ongoing G7 summit, saying the trade war is putting the world economy at risk.</p>

<p>China's currency slid to its weakest point in more than 11 years on Monday amid the ongoing tensions and fears of a global downturn.</p>

<p>The onshore yuan was around 7.1425 to the US dollar in late-morning Asian trading -- its weakest point since early 2008 -- and by the afternoon it had reached 7.1581.</p>

<p>The yuan, or renminbi as it is also known, is not freely convertible and the Chinese government limits its movement against the dollar to a two percent range on either side of a figure that the central bank sets each day.</p>

<p>The People's Bank of China has set that rate steadily weaker in recent weeks -- allowing the yuan to depreciate, making Chinese exports cheaper and offsetting some of the burden of US tariffs.</p>

<p>US politicians have long accused China of keeping its currency artificially low to increase the competitiveness of its manufacturers.</p>

<p>The yuan breached the key 7.0 threshold against the dollar earlier in August, just days after the US announced its plans to impose tariffs next month on Chinese imports.</p>


There were signs of a thaw in frosty trade-war tensions between China and the US on Monday as President Donald Trump said delegations would "very shortly" resume talks and Beijing's top negotiator called for "calm".

There were signs of a thaw in frosty trade-war tensions between China and the US on Monday as President Donald Trump said delegations would "very shortly" resume talks and Beijing's top negotiator called for "calm". The two sides have been embroiled in a bruising year-long dispute that has seen tariffs slapped on billions of dollars worth of goods in two-way trade, with the row escalating over the weekend. But just three days after the announcement of further mutual tariff hikes, Trump told reporters at the G7 summit in France's Biarritz he had taken two "very, very good" phone calls from Chinese officials. "China called last night... said let's get back to the table. So we'll be getting back to the table," he said on Monday, adding that "they want to make a deal". Trump's comments followed moves by China's most powerful trade negotiator, Vice Premier Liu He, to take the edge off the soaring tensions. Watch: Trump slaps new tariffs on China, Additional 5% Tariff On Chinese Imports × "We are willing to solve the problem through consultation and cooperation with a calm attitude," said Liu, according to a report by Chinese news outlet Caixin. "We firmly oppose the escalation of the trade war," he said, speaking at the opening ceremony of the 2019 Smart China Expo in the southwestern city of Chongqing. US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin travelled to Shanghai in July for a round of trade talks, where discussions were described as "constructive" but ended with no announcements. Monday's detente came after Trump increased tariffs on more than half-a-trillion dollars worth of imports in a new round of punitive measures that are roiling global markets. The US announcement on Friday followed an earlier surprise notification from Beijing that it would introduce fresh tariffs on US goods worth $75 billion. Some of these measures are due to take effect on September 1, with the rest to follow over the coming months. Currency tumbles On Twitter, Trump also told American firms to start looking for an alternative to production in China -- though he and his top aides later downplayed the idea. Meanwhile, Chinese foreign ministry spokesman Geng Shuang said he was not aware of the calls mentioned by Trump and angrily criticised the latest tariffs at a regular press briefing in Beijing. The US move "tramples on multilateral trade rules, damages the interests of China and the United States, threatens the security of the global industrial supply chain, drags down international trade and world economic growth", he said. US allies have pressured Trump at the ongoing G7 summit, saying the trade war is putting the world economy at risk. China's currency slid to its weakest point in more than 11 years on Monday amid the ongoing tensions and fears of a global downturn. The onshore yuan was around 7.1425 to the US dollar in late-morning Asian trading -- its weakest point since early 2008 -- and by the afternoon it had reached 7.1581. The yuan, or renminbi as it is also known, is not freely convertible and the Chinese government limits its movement against the dollar to a two percent range on either side of a figure that the central bank sets each day. The People's Bank of China has set that rate steadily weaker in recent weeks -- allowing the yuan to depreciate, making Chinese exports cheaper and offsetting some of the burden of US tariffs. US politicians have long accused China of keeping its currency artificially low to increase the competitiveness of its manufacturers. The yuan breached the key 7.0 threshold against the dollar earlier in August, just days after the US announced its plans to impose tariffs next month on Chinese imports.

Signs of hope as Donald Trump says US-China trade talks back on

<p><a href="https://www.wionews.com/world/china-raises-tariffs-on-us-goods-amid-esclating-tensions-223347">China will fight back against the latest US&nbsp;step to increase tariffs on Chinese goods,</a> the ruling Communist Party's People's Daily said on Sunday amid an escalating trade war between the world's two largest economies.</p>

<p>"China is confident that it will follow its own path and do its own things well, and will never waiver in its stand on countering any provocations by the US side," the newspaper said in a commentary.</p>

<p>US politicians, seeking to hamper<a href="https://www.wionews.com/world/china-desperate-to-reach-trade-deal-with-us-totally-misleading-foreign-ministry-236382"> China's economic development</a>, still want to use the tactics of exerting maximum pressure on China that has achieved few results, the paper said.</p>

<p>The United States will not win the trade war because of the plight faced by its farmers and businesses, it said.</p>

<p>China said on Saturday it strongly opposes Washington's decision to levy additional tariffs on $550 billion worth of Chinese goods and warned the United States of consequences if it does not end its "wrong actions".</p>

<p>US President Donald Trump announced on Friday that Washington will impose an additional 5 per cent duty on the Chinese goods, hours after Beijing announced its latest retaliatory tariffs on about $75 billion worth of US&nbsp;goods in the latest tit-for-tat moves in their bilateral trade dispute.</p>

<p>The intensifying US-China trade war stoked worries about a global economic recession.</p>


China will fight back against the latest US step to increase tariffs on Chinese goods, the ruling Communist Party's People's Daily said on Sunday amid an escalating trade war between the world's two largest economies.

China will fight back against the latest US step to increase tariffs on Chinese goods, the ruling Communist Party's People's Daily said on Sunday amid an escalating trade war between the world's two largest economies. "China is confident that it will follow its own path and do its own things well, and will never waiver in its stand on countering any provocations by the US side," the newspaper said in a commentary. US politicians, seeking to hamper China's economic development, still want to use the tactics of exerting maximum pressure on China that has achieved few results, the paper said. The United States will not win the trade war because of the plight faced by its farmers and businesses, it said. China said on Saturday it strongly opposes Washington's decision to levy additional tariffs on $550 billion worth of Chinese goods and warned the United States of consequences if it does not end its "wrong actions". US President Donald Trump announced on Friday that Washington will impose an additional 5 per cent duty on the Chinese goods, hours after Beijing announced its latest retaliatory tariffs on about $75 billion worth of US goods in the latest tit-for-tat moves in their bilateral trade dispute. The intensifying US-China trade war stoked worries about a global economic recession.

China to fight back against US tariff move: Report

<p>China on Saturday angrily hit out at the latest <a href="https://www.wionews.com/world/trump-heaps-another-5-tariff-on-chinese-goods-in-latest-tit-for-tat-escalation-245211">US tariff hikes on its goods</a>, saying a "bullying" Washington would eventually "eat its own bitter fruit".</p>

<p>European leaders have also warned US President Donald Trump of the dangers of trade skirmishes with China and Europe, which look set to dominate the G7 summit due to begin in France.</p>

<p>Trump on Friday increased existing and planned tariffs on a total of $550 billion in Chinese goods, in response to new tit-for-tat levy hikes announced earlier that day by Beijing on $75 billion of US imports.</p>

<p>A Chinese commerce ministry spokesman on Saturday denounced Washington's "unilateral and bullying trade protectionism".</p>

<p><strong>Watch: Trump slaps new tariffs on China, Additional 5% Tariff On Chinese Imports</strong></p>

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<p>The tariff increase "seriously undermines the multilateral trading system and the normal international trade order, and the US will surely eat its own bitter fruit.</p>

<p>"The Chinese side strongly urges the US side not to misjudge the situation, not to underestimate the determination of the Chinese people, and immediately stop its mistaken actions, otherwise all consequences will be borne by the US," the spokesman said.</p>

<p>By the end of the year the feud will affect nearly all imports and exports between the two countries, with US companies -- many of whom rely on China for inputs -- particularly worried by the rapidly changing conflict.</p>

<p>EU Council President Donald Tusk on Saturday warned that Trump's escalating trade tensions with China and Europe could force economies around the world into recession.</p>

<p>Meanwhile French President Emmanuel Macron, host of the G7 summit in the French city of Biarritz, also warned of the widespread fallout from the trade disputes.</p>


China on Saturday angrily hit out at the latest US tariff hikes on its goods, saying a "bullying" Washington would eventually "eat its own bitter fruit". European leaders have also warned US President Donald Trump of the dangers of trade skirmishes with China and Europe, which look set to dominate the G7 summit due to begin in France.

China on Saturday angrily hit out at the latest US tariff hikes on its goods, saying a "bullying" Washington would eventually "eat its own bitter fruit". European leaders have also warned US President Donald Trump of the dangers of trade skirmishes with China and Europe, which look set to dominate the G7 summit due to begin in France. Trump on Friday increased existing and planned tariffs on a total of $550 billion in Chinese goods, in response to new tit-for-tat levy hikes announced earlier that day by Beijing on $75 billion of US imports. A Chinese commerce ministry spokesman on Saturday denounced Washington's "unilateral and bullying trade protectionism". Watch: Trump slaps new tariffs on China, Additional 5% Tariff On Chinese Imports × The tariff increase "seriously undermines the multilateral trading system and the normal international trade order, and the US will surely eat its own bitter fruit. "The Chinese side strongly urges the US side not to misjudge the situation, not to underestimate the determination of the Chinese people, and immediately stop its mistaken actions, otherwise all consequences will be borne by the US," the spokesman said. By the end of the year the feud will affect nearly all imports and exports between the two countries, with US companies -- many of whom rely on China for inputs -- particularly worried by the rapidly changing conflict. EU Council President Donald Tusk on Saturday warned that Trump's escalating trade tensions with China and Europe could force economies around the world into recession. Meanwhile French President Emmanuel Macron, host of the G7 summit in the French city of Biarritz, also warned of the widespread fallout from the trade disputes.

'Bullying' US will 'eat its own bitter fruit,' says China slamming US over new tariffs

Tariff wars, duties imposed by Donald Trump and US trading partners

<p>China's economic growth slowed to 6.2% in the second quarter, its weakest pace in at least 27 years, as demand at home and abroad faltered in the face of mounting US trade pressure.</p>

<p>While more upbeat June factory output and retail sales offered signs of improvement, some analysts cautioned the gains may not be sustainable and expect Beijing will continue to roll out more support measures in coming months.</p>

<p>China's trading partners and financial markets are closely watching the health of the world's second-largest economy as the <a href="https://www.wionews.com/opinions/us-china-trade-war-is-making-china-stronger-234526">Sino-US trade war</a> gets longer and costlier, fuelling worries of a global recession.</p>

<p>Monday's growth data marked a loss of momentum for the economy from the first quarter's 6.4%, amid expectations that Beijing needs to do more to boost consumption and investment and restore business confidence.</p>

<p>The April-June pace was in line with analysts' expectations for the slowest since the first quarter of 1992, the earliest quarterly data on record.</p>

<p>"China's growth could slow to 6% to 6.1% in the second half," said Nie Wen, an economist at Hwabao Trust. That would test the lower end of Beijing's 2019 target range of 6-6.5%.</p>

<p>Cutting banks' reserve requirement ratios (RRR) "is still very likely as the authorities want to support the real economy in a long run," he said, predicting the economy would continue to slow before stabilising around mid-2020.</p>

<p>China has already slashed RRR six times since early 2018 to free up more funds for lending and analysts polled by Reuters forecast two more cuts this quarter and next.</p>

<p>Beijing has leaned largely on fiscal stimulus to underpin growth this year, announcing massive tax cuts worth nearly 2 trillion yuan ($291 billion) and a quota of 2.15 trillion yuan for special bond issuance by local governments aimed at boosting infrastructure construction.</p>

<p>The economy has been slow to respond, however, and business sentiment remains cautious.</p>

<p>Trade pressures have intensified since Washington sharply hiked tariffs on Chinese goods in May. While the two sides have since agreed to resume trade talks and hold off on further punitive action, they remain at odds over significant issues needed for an agreement.</p>

<p>Data on Friday showed China's exports fell in June and its imports shrank more than expected, while an official survey showed factories were shedding jobs at the fastest pace since the global crisis..</p>

<p>Premier Li Keqiang said this month that China will make timely use of cuts in banks' reserve ratios and other financing tools to support smaller firms, while repeating a vow not to use "flood-like" stimulus.</p>

<p><strong>Is better data sustainable?</strong></p>

<p>A steady string of weak economic data in recent months and the sudden escalation in the U.S.-China trade war had sparked questions over whether more forceful easing may be needed to get the Chinese economy back on steadier footing, including some form of interest rate cuts.</p>

<p>But June activity data on Monday showed industrial production, retail sales and fixed-asset investment all beat analysts' forecasts, suggesting that Beijing's earlier growth-boosting efforts may be starting to have an effect.</p>

<p>Analysts also say room for more aggressive monetary policy easing is being limited by fears of adding to high debt levels and structural risks.</p>

<p>"Cutting the benchmark deposit and lending rates -- the likelihood is very low. It's more possible (that) they twist the market-oriented rates -- cutting the interest rates of all those liquidity facilities also sends an important signal to the market," said Aidan Yao, senior Asia emerging markets economist at AXA Investment Managers in Hong Kong.</p>

<p>"Fiscal policy is likely to be in the driving seat and monetary policy will act in a supportive role in the coming months."</p>

<p>Industrial output climbed 6.3% from a year earlier, data from the National Bureau of Statistics showed, picking up from May's 17-year low and handily beating a forecast for 5.2% growth.</p>

<p>Daily output for crude steel and aluminium both rose to record levels.</p>

<p>Retail sales jumped 9.8% - the fastest clip since March 2018 - and confounding expectations for a slight pullback to 8.3%. Gains were led by a 17.2% surge in car sales.</p>

<p>Some analysts, however, questioned the apparent recovery in both output and sales.</p>

<p>Capital Economics said its in-house model suggested slower industrial growth, while the jump in car sales may have been partly due to a one-off factor.</p>

<p>Car dealers in China are offering big discounts to customers to reduce high inventories that have built up due to changing emission standards. Motor vehicle production actually fell 15.2%, the 11th monthly decline in a row, suggesting automakers don't expect a sustained bounce in demand any time soon.</p>

<p>"The monthly data were better than expected... (But) we are sceptical of this apparent recovery given broader evidence of weakness in factory activity," said Julian Evans-Pritchard, Senior China Economist at</p>

<p>"Looking ahead, we doubt that the data for June will mark the start of a turnaround."</p>

<p><strong>Investment also slowly picking up</strong></p>

<p>Fixed-asset investment for the first half of the year rose 5.8% from a year earlier, compared with a 5.5% forecast and 5.6% in the first five months of the year.</p>

<p>Real estate investment, a major growth driver for the world's second-largest economy, quickened in June. It rose 10.1% from a year earlier, accelerating from a 9.5% gain in May but still slower than in April, Reuters calculated.</p>

<p>Still, the economy remains in a complex situation, with external uncertainties on the rise, the statistics bureau said, adding China will work to ensure steady growth.</p>


China's economic growth slowed to 6.2% in the second quarter, its weakest pace in at least 27 years, as demand at home and abroad faltered in the face of mounting US trade pressure.

China's economic growth slowed to 6.2% in the second quarter, its weakest pace in at least 27 years, as demand at home and abroad faltered in the face of mounting US trade pressure. While more upbeat June factory output and retail sales offered signs of improvement, some analysts cautioned the gains may not be sustainable and expect Beijing will continue to roll out more support measures in coming months. China's trading partners and financial markets are closely watching the health of the world's second-largest economy as the Sino-US trade war gets longer and costlier, fuelling worries of a global recession. Monday's growth data marked a loss of momentum for the economy from the first quarter's 6.4%, amid expectations that Beijing needs to do more to boost consumption and investment and restore business confidence. The April-June pace was in line with analysts' expectations for the slowest since the first quarter of 1992, the earliest quarterly data on record. "China's growth could slow to 6% to 6.1% in the second half," said Nie Wen, an economist at Hwabao Trust. That would test the lower end of Beijing's 2019 target range of 6-6.5%. Cutting banks' reserve requirement ratios (RRR) "is still very likely as the authorities want to support the real economy in a long run," he said, predicting the economy would continue to slow before stabilising around mid-2020. China has already slashed RRR six times since early 2018 to free up more funds for lending and analysts polled by Reuters forecast two more cuts this quarter and next. Beijing has leaned largely on fiscal stimulus to underpin growth this year, announcing massive tax cuts worth nearly 2 trillion yuan ($291 billion) and a quota of 2.15 trillion yuan for special bond issuance by local governments aimed at boosting infrastructure construction. The economy has been slow to respond, however, and business sentiment remains cautious. Trade pressures have intensified since Washington sharply hiked tariffs on Chinese goods in May. While the two sides have since agreed to resume trade talks and hold off on further punitive action, they remain at odds over significant issues needed for an agreement. Data on Friday showed China's exports fell in June and its imports shrank more than expected, while an official survey showed factories were shedding jobs at the fastest pace since the global crisis.. Premier Li Keqiang said this month that China will make timely use of cuts in banks' reserve ratios and other financing tools to support smaller firms, while repeating a vow not to use "flood-like" stimulus. Is better data sustainable? A steady string of weak economic data in recent months and the sudden escalation in the U.S.-China trade war had sparked questions over whether more forceful easing may be needed to get the Chinese economy back on steadier footing, including some form of interest rate cuts. But June activity data on Monday showed industrial production, retail sales and fixed-asset investment all beat analysts' forecasts, suggesting that Beijing's earlier growth-boosting efforts may be starting to have an effect. Analysts also say room for more aggressive monetary policy easing is being limited by fears of adding to high debt levels and structural risks. "Cutting the benchmark deposit and lending rates -- the likelihood is very low. It's more possible (that) they twist the market-oriented rates -- cutting the interest rates of all those liquidity facilities also sends an important signal to the market," said Aidan Yao, senior Asia emerging markets economist at AXA Investment Managers in Hong Kong. "Fiscal policy is likely to be in the driving seat and monetary policy will act in a supportive role in the coming months." Industrial output climbed 6.3% from a year earlier, data from the National Bureau of Statistics showed, picking up from May's 17-year low and handily beating a forecast for 5.2% growth. Daily output for crude steel and aluminium both rose to record levels. Retail sales jumped 9.8% - the fastest clip since March 2018 - and confounding expectations for a slight pullback to 8.3%. Gains were led by a 17.2% surge in car sales. Some analysts, however, questioned the apparent recovery in both output and sales. Capital Economics said its in-house model suggested slower industrial growth, while the jump in car sales may have been partly due to a one-off factor. Car dealers in China are offering big discounts to customers to reduce high inventories that have built up due to changing emission standards. Motor vehicle production actually fell 15.2%, the 11th monthly decline in a row, suggesting automakers don't expect a sustained bounce in demand any time soon. "The monthly data were better than expected... (But) we are sceptical of this apparent recovery given broader evidence of weakness in factory activity," said Julian Evans-Pritchard, Senior China Economist at "Looking ahead, we doubt that the data for June will mark the start of a turnaround." Investment also slowly picking up Fixed-asset investment for the first half of the year rose 5.8% from a year earlier, compared with a 5.5% forecast and 5.6% in the first five months of the year. Real estate investment, a major growth driver for the world's second-largest economy, quickened in June. It rose 10.1% from a year earlier, accelerating from a 9.5% gain in May but still slower than in April, Reuters calculated. Still, the economy remains in a complex situation, with external uncertainties on the rise, the statistics bureau said, adding China will work to ensure steady growth.

China second-quarter GDP growth slows to 27-year low, more stimulus expected

<p>US business representatives who attended the new round of hearing on tariff increase on Monday opposed the additional tariffs, saying that they cannot do without China's supply and cannot afford <a href="https://www.wionews.com/world/us-china-rekindle-trade-talks-ahead-of-donald-trump-xi-jinping-g20-meeting-228545">another round of tariff rise</a>.</p>

<p>Different from former tariff increases, which mainly targeted intermediate products and industrial products, the new round of tariff is on consumer goods that every American resident has to use, such as cellphones, laptops, clothes, shoes, toys, and gaming devices, with a total worth of US $300 billion.</p>

<p>However, statistics showed that 82 per cent of cellphones and 94 per cent of laptops in US market are manufactured or assembled by Chinese manufactures, and a US $277 billion worth of clothes come from China.</p>

<p>If the levies are imposed, American consumers will <a href="https://www.wionews.com/world/amid-heightened-us-china-tensions-science-suffers-collateral-damage-228220">suffer a huge blow</a>, and American companies will lose a huge amount of profits, with some perhaps having to lay off employees or even close.</p>

<p>Although the US Department of Commerce and the Office of the US Trade Representative constantly ask American companies to seek alternatives in other countries, the answer is almost the same.</p>

<p><strong>Watch: US-China trade friction 'hurting world economic chain'</strong></p>

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/us-china-trade-friction-hurting-world-economic-chain-chinese-scholars-227099/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

<p>"It's not as simple to change a supply chain as to just send an email and say 'I would rather deal with you' or something. It takes many years to develop a relationship with suppliers. So for us, it's taken several years, almost decades now. It's cost a lot of money for us to visit China or have them visit us. And it's years of trust of doing business with each other," said Brandon Peckman, Sales Manager of Real Trading LLC.</p>

<p>The US publishing industry will probably suffer heavily from the tariff increase, as a US $2.3 billion worth of books on American market are printed and <a href="https://www.wionews.com/world/had-a-very-good-phone-call-with-xi-will-have-extended-meeting-with-him-at-g-20-in-japan-228438">made in China</a>.</p>

<p>"We don't have an option as to where we can go. Often it's because of the cost. A lot of the daily newspapers have gone out of business here in the States, so the printer capability, which I think you heard some testimony about, has gone down. So it's costs, also technology," said Jamie Fiocco, chairman of American Booksellers Association.</p>

<p>"One of the best examples might be children's book. And a lot of those titles are four-color titles. They're titles that use unique formats or maybe have especially interesting add-ons in terms of sidelines that come with those titles. And the US currently does not have that capacity or the technical skill to produce such titles. The US has a lot of very fine printers, but they tend to concentrate on one-color printing. Right now, it's coming from China," said Dan Cullen, Senior Strategy Officer of American Booksellers Association.</p>

<p>Over 500 American enterprises and industry associations attended the hearing on a further of US $300 billion worth of imported Chinese products at the International Trade Commission in Washington DC on Monday.</p>


US business representatives who attended the new round of hearing on tariff increase on Monday opposed the additional tariffs, saying that they cannot do without China's supply and cannot afford another round of tariff rise.

US business representatives who attended the new round of hearing on tariff increase on Monday opposed the additional tariffs, saying that they cannot do without China's supply and cannot afford another round of tariff rise. Different from former tariff increases, which mainly targeted intermediate products and industrial products, the new round of tariff is on consumer goods that every American resident has to use, such as cellphones, laptops, clothes, shoes, toys, and gaming devices, with a total worth of US $300 billion. However, statistics showed that 82 per cent of cellphones and 94 per cent of laptops in US market are manufactured or assembled by Chinese manufactures, and a US $277 billion worth of clothes come from China. If the levies are imposed, American consumers will suffer a huge blow, and American companies will lose a huge amount of profits, with some perhaps having to lay off employees or even close. Although the US Department of Commerce and the Office of the US Trade Representative constantly ask American companies to seek alternatives in other countries, the answer is almost the same. Watch: US-China trade friction 'hurting world economic chain' "It's not as simple to change a supply chain as to just send an email and say 'I would rather deal with you' or something. It takes many years to develop a relationship with suppliers. So for us, it's taken several years, almost decades now. It's cost a lot of money for us to visit China or have them visit us. And it's years of trust of doing business with each other," said Brandon Peckman, Sales Manager of Real Trading LLC. The US publishing industry will probably suffer heavily from the tariff increase, as a US $2.3 billion worth of books on American market are printed and made in China. "We don't have an option as to where we can go. Often it's because of the cost. A lot of the daily newspapers have gone out of business here in the States, so the printer capability, which I think you heard some testimony about, has gone down. So it's costs, also technology," said Jamie Fiocco, chairman of American Booksellers Association. "One of the best examples might be children's book. And a lot of those titles are four-color titles. They're titles that use unique formats or maybe have especially interesting add-ons in terms of sidelines that come with those titles. And the US currently does not have that capacity or the technical skill to produce such titles. The US has a lot of very fine printers, but they tend to concentrate on one-color printing. Right now, it's coming from China," said Dan Cullen, Senior Strategy Officer of American Booksellers Association. Over 500 American enterprises and industry associations attended the hearing on a further of US $300 billion worth of imported Chinese products at the International Trade Commission in Washington DC on Monday.

We cannot run business without China's supply, says US publishers amid trade war

<p>India is preparing to impose higher tariffs on <a href="https://www.wionews.com/opinions/indias-indifference-to-the-us-on-gsp-is-the-perfect-response-225283">some US goods</a> including almonds, walnuts and apples next week after a delay of about a year, two sources said, following Washington's withdrawal of key trade privileges for New Delhi.</p>

<p>From June 5, US President Donald Trump scrapped trade privileges under the Generalised System of Preferences (GSP) for India, the biggest beneficiary of a scheme that allowed duty-free exports of up to $5.6 billion from the country.</p>

<p>India is now looking at adopting the higher tariffs, the sources with direct knowledge of the matter said, although the US has warned that any retaliatory tariffs by India would not be "appropriate" under WTO rules.</p>

<p>"What India is doing is legal and the tariffs on US goods will only lead to an impact of around $220 million," one of the sources said, declining to be identified because of the sensitivity of the matter.</p>

<p>India's Ministry of Commerce and Industry did not respond to an email from Reuters to seek comments.</p>

<p>India initially issued an order in June last year to raise import taxes as high as 120% on a slew of US items, incensed by Washington's refusal to exempt New Delhi from higher steel and aluminium tariffs.</p>

<p>But New Delhi repeatedly delayed <a href="https://www.wionews.com/business-economy/unfortunate-washington-didnt-accept-offer-on-gsp-resolution-says-india-223358">raising tariffs</a> as the two nations engaged in trade talks. Trade between them stood at about $142.1 billion in 2018.</p>

<p>India is by far the largest buyer of US almonds, paying $543 million for more than half of US almond exports in 2018, US Department of Agriculture data shows. It is the second largest buyer of US apples, taking $156 million worth in 2018.</p>

<p>US Secretary of State Mike Pompeo, who is expected to visit India this month, said this week the United States was open to dialogue to resolve trade differences with India, through greater access for American companies to its markets.</p>

<p>Dates for Pompeo's visit have not been officially announced but media said it could be ahead of Prime Minister Narendra Modi's first meeting with Trump in more than two years, on the sidelines of a G20 summit in Japan, on June 28 and 29.</p>

<p>Trump has repeatedly called out India for its high tariffs, even though the two countries have developed close political and security ties.</p>

<p>New Delhi's new rules in areas such as e-commerce and data localisation have angered the United States and hit companies such as Amazon.com, Walmart Inc, Mastercard and Visa, among others.</p>

<p>Previously, India has called the withdrawal of GSP benefits "unfortunate", and vowed to "always uphold its national interest in these matters".</p>


India is preparing to impose higher tariffs on some US goods including almonds, walnuts and apples next week after a delay of about a year, two sources said, following Washington's withdrawal of key trade privileges for New Delhi.

India is preparing to impose higher tariffs on some US goods including almonds, walnuts and apples next week after a delay of about a year, two sources said, following Washington's withdrawal of key trade privileges for New Delhi. From June 5, US President Donald Trump scrapped trade privileges under the Generalised System of Preferences (GSP) for India, the biggest beneficiary of a scheme that allowed duty-free exports of up to $5.6 billion from the country. India is now looking at adopting the higher tariffs, the sources with direct knowledge of the matter said, although the US has warned that any retaliatory tariffs by India would not be "appropriate" under WTO rules. "What India is doing is legal and the tariffs on US goods will only lead to an impact of around $220 million," one of the sources said, declining to be identified because of the sensitivity of the matter. India's Ministry of Commerce and Industry did not respond to an email from Reuters to seek comments. India initially issued an order in June last year to raise import taxes as high as 120% on a slew of US items, incensed by Washington's refusal to exempt New Delhi from higher steel and aluminium tariffs. But New Delhi repeatedly delayed raising tariffs as the two nations engaged in trade talks. Trade between them stood at about $142.1 billion in 2018. India is by far the largest buyer of US almonds, paying $543 million for more than half of US almond exports in 2018, US Department of Agriculture data shows. It is the second largest buyer of US apples, taking $156 million worth in 2018. US Secretary of State Mike Pompeo, who is expected to visit India this month, said this week the United States was open to dialogue to resolve trade differences with India, through greater access for American companies to its markets. Dates for Pompeo's visit have not been officially announced but media said it could be ahead of Prime Minister Narendra Modi's first meeting with Trump in more than two years, on the sidelines of a G20 summit in Japan, on June 28 and 29. Trump has repeatedly called out India for its high tariffs, even though the two countries have developed close political and security ties. New Delhi's new rules in areas such as e-commerce and data localisation have angered the United States and hit companies such as Amazon.com, Walmart Inc, Mastercard and Visa, among others. Previously, India has called the withdrawal of GSP benefits "unfortunate", and vowed to "always uphold its national interest in these matters".

India set to levy higher tariffs on some US goods next week: Sources

<p>President Donald Trump on Friday announced a deal to lift US tariffs on steel and aluminium imports from Canada and Mexico that had created friction between the neighbours and blocked a new North American free trade agreement.</p>

<p>"I'm pleased to announce that we've just reached an agreement with Canada and Mexico and will be selling our product into those countries, without the imposition of tariffs," Trump said at an event in the US capital.</p>

<p>His statement came moments after Canada released the text of the agreement between Ottawa and Washington in which they agreed to eliminate US tariffs on steel and aluminium, and Canada's retaliatory measures, within no more than two days.</p>

<p>Mexico confirmed it had reached a similar agreement with the United States.</p>

<p>"Trump's strategy has worked," US Commerce Secretary Wilbur Ross said in a statement,<a href="https://www.wionews.com/world/trump-delays-decision-on-auto-tariffs-for-up-to-six-months-219505"> crediting the tariffs with reviving US</a> steel and aluminium manufacturers.</p>

<p>The steep US tariffs imposed last year -- 25 per cent on steel and 10 per cent on aluminium -- became a major stumbling block to ratifying a new North American trade pact negotiated last year by the three countries.</p>

<p>Canada and Mexico initially were exempted from the tariffs Trump enforced using a national security argument, as part of his hardline trade tactics.&nbsp;</p>

<p>Once America's neighbours were included, the levies drew retaliation with tariffs on a host of US products.</p>

<p>Even after the governments agreed to a revised free trade deal -- the US-Mexico-Canada Agreement, or USMCA -- the tariffs remained in place, but officials in Ottawa and Mexico City said they would not sign unless Washington removed the metals duties.</p>

<p><strong>Not making sense</strong></p>

<p>Speaking to reporters in Ottawa, Canada's Prime Minister Justin Trudeau said there was a shared recognition that "these tariffs were harming workers and consumers on both sides of the border" and "didn't make a lot of sense" in the context of a new free trade deal.</p>

<p>"Obviously these continued tariffs on steel and aluminium and our countermeasures represented significant barriers to moving forward with the new NAFTA agreement," he said, referring to the 24-year-old North American Free Trade Agreement.</p>

<p>"Now that we've had a full lift on these tariffs we are going to work with the United States on timing for ratification but we're very optimistic we are going to be able to move forward well in the coming weeks," Trudeau said.</p>

<p>Mexican chief trade negotiator Jesus Seade likewise tweeted that the lifting of tariffs "clears the way towards ratification of USMCA."</p>

<p>Some key members of the US Congress had said they would not agree to vote for the three-country free trade pact unless the Trump's metals tariffs ended.</p>

<p>"Hopefully Congress will approve it quickly," said Trump.</p>

<p>Democratic US Senator Chuck Schumer applauded the decision to remove the metals tariffs but said there are other concerns about the USMCA.</p>

<p>"It is a good thing these tariffs will be lifted, and we should urge our allies to join us in preventing China's predatory practices," Schumer said in a statement.&nbsp;</p>

<p>However, "There are still many other issues that are outstanding before Democrats would support the USMCA."</p>

<p>According to the agreement, Canada and Mexico will withdraw all complaints lodged against the United States at the World Trade Organization.</p>

<p>The two countries also agreed to monitor imports of steel and aluminium to ensure metals that are sold at "dumped prices" -- below the cost of production -- are not purchased in or shipped through Canada and Mexico.</p>

<p>In addition, they agreed to a provision to reimpose steep duties if imports of the metals "surge meaningfully beyond historic volumes of trade over a period of time."</p>

<p>The US Trade Representative's office said the agreement "provides for aggressive monitoring and a mechanism to prevent surges in imports of steel and aluminium."&nbsp;</p>

<p>"This agreement is great news for American farmers that have been subject to retaliatory tariffs from Canada and Mexico," USTR said.&nbsp;</p>

<p>US tariffs on steel and aluminium from Europe remain in place, as does the EU retaliation. Some countries, including South Korea, accepted export quotas to avoid the tariffs.</p>


President Donald Trump on Friday announced a deal to lift US tariffs on steel and aluminium imports from Canada and Mexico that had created friction between the neighbours and blocked a new North American free trade agreement.

President Donald Trump on Friday announced a deal to lift US tariffs on steel and aluminium imports from Canada and Mexico that had created friction between the neighbours and blocked a new North American free trade agreement. "I'm pleased to announce that we've just reached an agreement with Canada and Mexico and will be selling our product into those countries, without the imposition of tariffs," Trump said at an event in the US capital. His statement came moments after Canada released the text of the agreement between Ottawa and Washington in which they agreed to eliminate US tariffs on steel and aluminium, and Canada's retaliatory measures, within no more than two days. Mexico confirmed it had reached a similar agreement with the United States. "Trump's strategy has worked," US Commerce Secretary Wilbur Ross said in a statement, crediting the tariffs with reviving US steel and aluminium manufacturers. The steep US tariffs imposed last year -- 25 per cent on steel and 10 per cent on aluminium -- became a major stumbling block to ratifying a new North American trade pact negotiated last year by the three countries. Canada and Mexico initially were exempted from the tariffs Trump enforced using a national security argument, as part of his hardline trade tactics. Once America's neighbours were included, the levies drew retaliation with tariffs on a host of US products. Even after the governments agreed to a revised free trade deal -- the US-Mexico-Canada Agreement, or USMCA -- the tariffs remained in place, but officials in Ottawa and Mexico City said they would not sign unless Washington removed the metals duties. Not making sense Speaking to reporters in Ottawa, Canada's Prime Minister Justin Trudeau said there was a shared recognition that "these tariffs were harming workers and consumers on both sides of the border" and "didn't make a lot of sense" in the context of a new free trade deal. "Obviously these continued tariffs on steel and aluminium and our countermeasures represented significant barriers to moving forward with the new NAFTA agreement," he said, referring to the 24-year-old North American Free Trade Agreement. "Now that we've had a full lift on these tariffs we are going to work with the United States on timing for ratification but we're very optimistic we are going to be able to move forward well in the coming weeks," Trudeau said. Mexican chief trade negotiator Jesus Seade likewise tweeted that the lifting of tariffs "clears the way towards ratification of USMCA." Some key members of the US Congress had said they would not agree to vote for the three-country free trade pact unless the Trump's metals tariffs ended. "Hopefully Congress will approve it quickly," said Trump. Democratic US Senator Chuck Schumer applauded the decision to remove the metals tariffs but said there are other concerns about the USMCA. "It is a good thing these tariffs will be lifted, and we should urge our allies to join us in preventing China's predatory practices," Schumer said in a statement. However, "There are still many other issues that are outstanding before Democrats would support the USMCA." According to the agreement, Canada and Mexico will withdraw all complaints lodged against the United States at the World Trade Organization. The two countries also agreed to monitor imports of steel and aluminium to ensure metals that are sold at "dumped prices" -- below the cost of production -- are not purchased in or shipped through Canada and Mexico. In addition, they agreed to a provision to reimpose steep duties if imports of the metals "surge meaningfully beyond historic volumes of trade over a period of time." The US Trade Representative's office said the agreement "provides for aggressive monitoring and a mechanism to prevent surges in imports of steel and aluminium." "This agreement is great news for American farmers that have been subject to retaliatory tariffs from Canada and Mexico," USTR said. US tariffs on steel and aluminium from Europe remain in place, as does the EU retaliation. Some countries, including South Korea, accepted export quotas to avoid the tariffs.

Donald Trump lifts steel, aluminum tariffs on Canada, Mexico

<p>Asian shares inched up from two-month lows on Friday just hours ahead of the Trump administration's plan to raise tariffs on Chinese imports as investors looked to whether negotiators from the two countries can clinch a deal to avert the hike.</p>

<p>US President Donald Trump said on Thursday he had received a "beautiful letter" from Chinese President Xi Jinping, stoking hopes that Washington may suspend its plan to raise tariffs on $200 billion worth of Chinese goods to 25 per cent from 10 per cent. That provided some support for stocks in early Asian trade though sentiment remains cautious.</p>

<p>MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.2 per cent while Japan's Nikkei rose 0.4 per cent. E-mini futures for US&nbsp;S&amp;P500 rose 0.4 per cent in early Asian trade.</p>

<p>Yet with less than four hours left before the announced start of new rates at 12:01 a.m. (0401) GMT on Friday, right in the middle of two days of meetings with a Chinese delegation, some see the risk of a fresh escalation in the trade war.</p>

<p>"I'd say there's 50 per cent chance the tariffs will be raised as announced, which should lead to fresh selling in stocks later today," said Norihiro Fujito, chief investment in Mitsubishi UFJ Morgan Stanley Securities.</p>

<p>China's Vice Premier Liu He said he hopes to engage in a rational and candid exchange with the US after arriving in Washington for a new round of trade talks, China's official Xinhua news agency reported.</p>

<p>Trump also said on Thursday he was taking steps to authorise new tariffs on $325 billion in Chinese imports.</p>

<p>Concerns about renewed escalation in the trade tensions supported safe-haven assets.</p>

<p>The 10-year US&nbsp;Treasuries yield stood at 2.453 per cent near its lowest levels since late March.</p>

<p>In the currency market, the yen is favoured, with the dollar changing hands at 109.71 yen, having hit a three-month low of 109.47 on Thursday.</p>

<p>The euro firmed to $1.1220 while the Chinese yuan perked at 6.838 per dollar having hit a four-month low of 6.8638 to the dollar the previous day.</p>

<p>MSCI's emerging market currency index also tumbled to a four-month low.</p>

<p>Oil prices held firm after Trump's comments on Xi's letter raised hopes for a deal for now.</p>

<p>Brent rose 0.7 per cent to $70.86 a barrel while U.S. West Texas Intermediate (WTI) crude gained 0.9 per cent to $62.24 per barrel.</p>


Asian shares inched up from two-month lows on Friday just hours ahead of the Trump administration's plan to raise tariffs on Chinese imports as investors looked to whether negotiators from the two countries can clinch a deal to avert the hike.

Asian shares inched up from two-month lows on Friday just hours ahead of the Trump administration's plan to raise tariffs on Chinese imports as investors looked to whether negotiators from the two countries can clinch a deal to avert the hike. US President Donald Trump said on Thursday he had received a "beautiful letter" from Chinese President Xi Jinping, stoking hopes that Washington may suspend its plan to raise tariffs on $200 billion worth of Chinese goods to 25 per cent from 10 per cent. That provided some support for stocks in early Asian trade though sentiment remains cautious. MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.2 per cent while Japan's Nikkei rose 0.4 per cent. E-mini futures for US S&P500 rose 0.4 per cent in early Asian trade. Yet with less than four hours left before the announced start of new rates at 12:01 a.m. (0401) GMT on Friday, right in the middle of two days of meetings with a Chinese delegation, some see the risk of a fresh escalation in the trade war. "I'd say there's 50 per cent chance the tariffs will be raised as announced, which should lead to fresh selling in stocks later today," said Norihiro Fujito, chief investment in Mitsubishi UFJ Morgan Stanley Securities. China's Vice Premier Liu He said he hopes to engage in a rational and candid exchange with the US after arriving in Washington for a new round of trade talks, China's official Xinhua news agency reported. Trump also said on Thursday he was taking steps to authorise new tariffs on $325 billion in Chinese imports. Concerns about renewed escalation in the trade tensions supported safe-haven assets. The 10-year US Treasuries yield stood at 2.453 per cent near its lowest levels since late March. In the currency market, the yen is favoured, with the dollar changing hands at 109.71 yen, having hit a three-month low of 109.47 on Thursday. The euro firmed to $1.1220 while the Chinese yuan perked at 6.838 per dollar having hit a four-month low of 6.8638 to the dollar the previous day. MSCI's emerging market currency index also tumbled to a four-month low. Oil prices held firm after Trump's comments on Xi's letter raised hopes for a deal for now. Brent rose 0.7 per cent to $70.86 a barrel while U.S. West Texas Intermediate (WTI) crude gained 0.9 per cent to $62.24 per barrel.

Asian shares near two-month lows ahead of looming US tariff hike

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