The draft trade agreement with China announced by Donald Trump on Wednesday would ease concerns from top US military suppliers about rare-earth metals and magnets that, if cut off permanently, could hobble production of everything from smart bombs to fighter jets to submarines and other weapons in the US arsenal. While the deal has not yet been finalised, it may reassure major defense companies such as Lockheed Martin, the largest US user of samarium – a rare-earth metal used in military-grade magnets – whose supply is entirely controlled by China.…
Tag: US politics
‘Total discrimination’: Chinese students facing US visa ban say their lives are in limbo
Chinese students in the United States are questioning their future in the country after the state department announced last week that it would “aggressively” revoke visas for Chinese students and enhance scrutiny of future applications from China and Hong Kong. Chinese students hoping to study at Harvard, the US’s oldest and wealthiest university, are under particular pressure after the Trump administration announced on Wednesday that it was banning the school from enrolling new foreign students. The presidential proclamation cited Harvard’s links with China as a particular cause for concern. For…
Donald Trump to meet Xi Jinping in China after ‘very good’ call on trade
Donald Trump said he had accepted an invitation to meet Xi Jinping in China after a phone conversation on trade was held between the leaders of the world’s two largest economies. In a post on Truth Social, the US president said the “very good” call lasted about 90 minutes and the conversation was “almost entirely focused on trade”. He wrote: “The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries. There should no longer be any questions respecting the complexity of…
Trump allies rail against court ruling blocking wide swath of tariffs
Republicans and close allies of Donald Trump are railing against a federal judicial panel who blocked a wide swath of the US president’s tariffs Wednesday night, including those against China. Some attempted to frame the decision as part of a broader fight between the Trump administration and US justice system. Trump has frequently complained about legal decisions that don’t go his way, attacking judges on social media in ways that have alarmed civic society experts. “The judicial coup is out of control,” Stephen Miller, White House deputy chief of staff,…
Trump threatens 25% tariff on iPhones if they are not made in US
Donald Trump has threatened to impose a 25% tariff on iPhones if they are not made in the United States, as he stepped up the pressure on Apple to build its signature product in America. The US president caused a pre-trading dip in Apple shares with a post on the Truth Social platform stating that iPhones sold inside the US must be made within the country’s borders. Trump said in the post: “I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold…
This pause in the trade war will be brief. Small businesses, plan accordingly
Donald Trump’s massive Chinese tariffs are on pause. The media debated. Wall Street rejoiced. Many of my clients breathed a sigh of relief. Big retailers jumped for joy. But for how long? For starters, the tariffs that weren’t paused – a 10% levy on all Chinese goods, plus a bonus 20% tax that somehow relates to fentanyl, are still in place. When you take into consideration existing tariffs on steel from previous Trump and Biden administrations, the effective tariff rate on Chinese goods is actually closer to 40%, according to…
Gone in 40 days: how Trump’s ‘liberation day’ tariff assault unraveled
Donald Trump hailed a new chapter in the US’s economic history on 2 April, dubbed “liberation day” by his administration, as he announced plans for an extraordinary barrage of US tariffs on the world. The chapter lasted 40 days. The page has already been turned. But the impact of those six chaotic weeks, from higher prices to slowing growth, is still unfolding – and the US president is already threatening further adjustments. The story continues. Trump had been steered away from his aggressive instincts on trade during his first term,…
US to cut ‘de minimis’ tariff on goods from China to as low as 30%
The US will cut the “de minimis” tariff for low-value shipments from China to as low as 30%, according to a White House executive order and industry experts, further de-escalating a potentially damaging trade war between the world’s two largest economies. The order published late on Monday offers some relief to big Chinese e-commerce players Shein and Temu and follows a weekend deal between Beijing and Washington to unwind for 90 days most of the tit-for-tat tariffs imposed on each other’s goods since early April. While their joint statement after…
Brazil’s president seeks ‘indestructible’ links with China amid Trump trade war
The Brazilian president, Luiz Inácio Lula da Silva, has heralded his desire to build “indestructible” relations with China, as the leaders of three of Latin America’s biggest economies flew to Beijing against the backdrop of Donald Trump’s trade war and the profound international uncertainty his presidency has generated. Lula touched down in China’s capital on Sunday for a four-day state visit, accompanied by 11 ministers, top politicians and a delegation of more than 150 business leaders. Hours later Colombia’s president, Gustavo Petro, arrived, making a beeline for the Great Wall…
US and China agree to lower tariffs in trade war de-escalation – video
The US and China have agreed to lower tariffs on each other’s goods substantially for 90 days following negotiations last weekend. Speaking in Geneva, the US treasury secretary, Scott Bessent, said ‘both sides will move their tariffs down by 115%’. It is a significant de-escalation in the trade war that blew up last month. Before the latest deal, the US had lifted its tariffs on China to 145% – including the 20% tariff added to tackle fentanyl imports into the US – with Beijing having retaliated with 125% tariffs on…