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…
Tag: Global economy
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…
China exports beat expectations despite slump in trade with US
Chinese trade with the United States slumped in April even as its total exports beat forecasts, official figures show, as trade representatives from both nations prepared to meet this weekend in the midst of a gruelling trade war between the superpower rivals. Exports to the United States – one of China’s top trading partners – fell 17.6% in April, data showed. Against that backdrop, analysts polled by Bloomberg had expected exports to rise just 2% year-on-year last month. However they beat expectations, coming in at 8.1%. “The damage of the…
BMW boss predicts Trump’s 25% tariffs on foreign cars will be lowered by July
The boss of BMW has predicted that Donald Trump’s import tariffs on foreign cars will be lowered this summer, as the German carmaker reported profits for the first three months had tumbled by a quarter. Oliver Zipse, BMW’s chief executive, said he expected that Trump’s 25% tariffs on the import of foreign cars would be dropped by July. He made the prediction after the company reported a drop in profit to €3.1bn (£2.6bn) as it braced for the effects of Trump’s trade war and strong competition in China. Zipse also…
UK should not fear trade with China – but needs to keep risks in check | Gerard Lyons
The US is urging countries to agree new trade deals. The perceived risk is a bipolar world, where countries have to choose between the US and China. What are the implications for the UK? In all likelihood this choice is avoidable. The global economy is so interconnected, fragmentation is more likely than a bipolar world. Supply chains are complex, and involve many countries. Even as nations look to onshore supply chains, achieving this will be a lengthy and expensive challenge. Likewise, with financial flows. Bank for International Settlements data shows…
Why is Trump ending the ‘de minimis’ tariff loophole on low-value imports?
At one minute past midnight on Friday, eastern time, a US tariff exemption that has fuelled the rise of companies such as Shein and Temu, and stocked the wardrobes of millions of Americans with cheap fast fashion and other household goods, closed. As part of Donald Trump’s flurry of tariffs on China, the US is closing a loophole that allowed low-value goods to be shipped into the US without paying any import fees. The “de minimis” loophole, known by the Latin phrase for “of little importance”, was “a big scam…
Xi announces plan for Chinese economy to counter impact of US trade war
Xi Jinping has announced a plan to counter China’s continuing economic problems and the impact of the US trade war, as reports swirl that it could drop tariffs on some US products, including semiconductors. Friday’s meeting of the politburo was convened to discuss China’s economic situation, which since the pandemic has faced difficulties fuelled by a housing sector crisis, youth unemployment, and Donald Trump’s tariffs on all Chinese exports. A readout of the meeting published by the official state media outlet, Xinhua, said China’s economy had showed a “positive trend”…
US and China holding talks on trade war, Trump says after Beijing rebuttal
The US and China held talks on Thursday to help resolve the trade war between the world’s two largest economies, Donald Trump said. “We may reveal it later, but they had meetings this morning, and we’ve been meeting with China,” the US president told reporters at the White House. China had earlier hit back against Trump’s previous claim to be close to a trade deal with Beijing. Trump had buoyed markets by suggesting on Wednesday that the US was “actively” negotiating with Beijing, and pointing to hopes of a deal…
Cutting business ties with China would be ‘foolish’, Reeves says amid reports of US pressure
Rachel Reeves has dismissed the idea of economically disengaging from China, amid concerns the US may put pressure on the UK to limit its deals with Beijing. The chancellor, who will discuss a trade deal with the US on a trip to Washington next week, said it would be “very foolish” for Britain to have less involvement with Xi Jinping’s administration. The Wall Street Journal reported this week that US officials would attempt to use trade deals and tariff discussions to economically isolate China. Keir Starmer spoke to Donald Trump…
Nvidia’s CEO makes surprise visit to Beijing after US restricts chip sales to China
The chief executive of the American chip maker Nvidia visited Beijing on Thursday, days after the US issued fresh restrictions on sales of the only AI chip it was still allowed to sell to China. Jensen Huang’s surprise visit was on the invitation of a trade organisation, according to a social media account affiliated with state media. The official broadcaster China Central Television said Huang met Ren Hongbin, the head of the China Council for the Promotion of International Trade, where he said he hopes “to continue to cooperate with…