From 16m ago Introduction: China’s May factory activity shrinks as tariffs hit demand Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy. Evidence is mounting that Donald Trump’s trade war is disrupting manufacturing activity around the globe. China’s manufacturing activity in May shrank at its fastest pace in two and a half years, according to the latest survey data, as firms were hit by a fall in new orders, and weaker export demand. The Caixin/S&P Global manufacturing purchasing managers’ index, released this…
Tag: Economics
Trump accuses EU of dragging its heels on a tariff deal with the US
Donald Trump said the EU had been dragging its heels “to put it mildly” on sealing a tariff deal with the US, repeating his assessment that his threat of a 50% tariff on imports from the bloc was an “extremely” satisfactory move. He commended the EU for calling to “quickly establish meeting dates” but reignited fears of a trade war with the region by adding criticism of the EU to his statement on his Truth Social platform on Tuesday. “I was extremely satisfied with the 50% tariff allotment on the…
Poorest 750 nations face ‘tidal wave’ of debt repayments to China in 2025, study warns
The most vulnerable nations on Earth are facing a “tidal wave” of debt repayments as a Chinese lending boom starts to be called in, a new report has warned. The analysis, published on Tuesday by Australian foreign policy thinktank the Lowy Institute, said that in 2025 the poorest 75 countries were on the hook for record high debt repayments US$22bn to China. The 75 nations’ debt formed the bulk of the total $35bn calculated by Lowy for 2025. “Now, and for the rest of this decade, China will be more…
World’s seven wealthiest countries agree to counter China’s trade practices
Top finance officials from the world’s seven wealthiest democracies set aside stark differences on US tariffs and agreed to counter global “economic imbalances”, a swipe at China’s trade practices. In a communique issued on Thursday, the Group of Seven finance ministers and central bank governors, meeting in the Canadian Rockies, left out their traditional defense of free trade and toned down their references to Russia’s war in Ukraine compared with last year. But they did agree that further sanctions on Russia could be imposed if the two countries do not…
China and Australia cut interest rates; Greggs sales improve as Mac and Cheese goes viral – business live
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Trump says he has a ‘little problem’ with Tim Cook over Apple’s India production
Donald Trump has admonished Apple and its chief executive over the tech firm’s reported plans to source production of US-bound iPhones from India. The US president said he had a “little problem” with Apple’s Tim Cook, after reports that the company is planning to switch assembly of handsets for the US market from China to India. “I had a little problem with Tim Cook yesterday,” said Trump, speaking in Qatar on Thursday. Referring to Apple’s recent promise to spend $500bn (£375bn) in the US, he added: “I said to him:…
China issues warning to UK over terms of US trade deal
China has warned the UK over its new trade deal with the US, accusing Britain of aligning with the US in a move that could compel British companies to exclude Chinese products from their supply chains. The UK-US trade deal, signed last week, offers Britain limited relief from US tariffs on car and steel exports, but only if it complies with strict American security requirements. These conditions include scrutinising supply chains and ownership structures – a move widely interpreted as targeting Chinese involvement. Beijing argues the agreement violates the principle…
US to slash tariff on small China parcels from 120% to 54%
The US has announced it is cutting the tariff on small parcels sent from mainland China and Hong Kong to the US from 120% to 54%, hours after Washington and Beijing agreed a 90-day pause in their trade war. Donald Trump signed an executive order more than halving the levy, which was brought in at the start of this month to close the “de minimis” loophole allowing low-value goods to be sent to the US without paying any import fees. The exemption – taken from the Latin phrase for “of…
China and US agree 90-day pause to trade war initiated by Donald Trump
China and the US have agreed a 90-day pause to the deepening trade war that has threatened to upend the global economy, with reciprocal tariffs to be lowered by 115 percentage points. Speaking to the media after talks in Geneva, the US treasury secretary, Scott Bessent, said both sides had shown “great respect” in the negotiations. Bessent said: “The consensus from both delegations this weekend was neither side wants a decoupling.” The 90-day lowering of tariffs applies to the duties announced by Donald Trump on 2 April, which ultimately escalated…
Trump claims ‘total reset’ in US-China trade relations after tariff talks in Geneva
Donald Trump has hailed a “total reset” in US-China trade relations after the first day of talks between top American and Chinese officials in Geneva aimed at defusing a trade war sparked by his tariff rollout. The US president praised the “very good” discussions and deemed them “a total reset negotiated in a friendly, but constructive, manner”. “We want to see, for the good of both China and the U.S., an opening up of China to American business,” he posted on his Truth Social platform early on Sunday, adding: “GREAT…