Connect with us

World

Trump U-turns on tariffs but keeps trade war heat on China

Published

on

U.S. President Donald Trump’s stunning decision to pause the hefty duties he had just imposed on dozens of countries sent battered global stock markets surging on Thursday even as he ratcheted up a trade war with the world’s No. 2 economy China.

Trump’s turnabout on Wednesday, which came less than 24 hours after steep new tariffs kicked in on most trading partners, followed the most intense episode of financial market volatility since the early days of the COVID-19 pandemic, Reuters reported.

The upheaval erased trillions of dollars from stock markets and led to an unsettling surge in U.S. government bond yields that appeared to catch Trump’s attention.

“I thought that people were jumping a little bit out of line, they were getting yippy, you know,” Trump told reporters after the announcement, referring to jitters sportpeople sometimes get.

U.S. stock indexes shot higher on the news, with the benchmark S&P 500 index closing 9.5% higher. Bond yields came off earlier highs and the dollar rebounded against safe-haven currencies.

The relief spread through Asian markets as they opened on Thursday with Japan’s Nikkei index surging 8% while European futures also pointed to a sharp rebound. Even Chinese stocks rose, propped up by hopes of state support, although its yuan currency fell to the lowest level since the global financial crisis.

Since returning to the White House in January, Trump has repeatedly threatened an array of punitive measures on trading partners, only to revoke some of them at the last minute. The on-again, off-again approach has baffled world leaders and spooked business executives.

U.S. Treasury Secretary Scott Bessent asserted that the pullback had been the plan all along to bring countries to the bargaining table. Trump, though, later indicated that the near-panic in markets that had unfolded since his April 2 announcements had factored in to his thinking.

Despite insisting for days that his policies would never change, he told reporters on Wednesday: “You have to be flexible.”

But he kept the pressure on China, the second biggest provider of U.S. imports. Trump said he would raise the tariff on Chinese imports to 125% immediately from the 104% level that took effect at midnight.

Beijing on Wednesday slapped 84% tariffs on U.S. imports to match Trump’s earlier tariff salvo and has vowed to “fight to the end” in an escalating tit-for-tat trade dispute between the world’s top two economies.

Chinese companies that sell products on Amazon are preparing to hike prices for the U.S. or quit that market due to the “unprecedented blow” from the tariff hikes, the head of China’s largest e-commerce association said.

‘GOADED CHINA’

Trump’s reversal on the tariffs imposed on other countries is also not absolute. A 10% blanket duty on almost all U.S. imports will remain in effect, the White House said. The announcement also does not appear to affect duties on autos, steel and aluminum that are already in place.

The 90-day freeze also does not apply to duties paid by Canada and Mexico, because their goods are still subject to 25% fentanyl-related tariffs if they do not comply with the U.S.-Mexico-Canada trade agreement’s rules of origin. Those duties remain in place for the moment, with an indefinite exemption for USMCA-compliant goods.

Trump’s tariffs had sparked a days-long selloff that erased trillions of dollars from global stocks and pressured U.S. Treasury bonds and the dollar, which form the backbone of the global financial system. Canada and Japan said they would step in to provide stability if needed – a task usually performed by the United States during times of economic crisis.

Analysts said the sudden spike in share prices might not undo all of the damage. Surveys have found slowing business investment and household spending due to worries about the impact of the tariffs, and a Reuters/Ipsos survey found that three out of four Americans expect prices to increase in the months ahead.

Goldman Sachs cut its probability of a recession back to 45% after Trump’s move, down from 65%, saying the tariffs left in place were still likely to result in a 15% increase in the overall tariff rate.

Treasury Secretary Bessent shrugged off questions about market turmoil and said the abrupt reversal rewarded countries that had heeded Trump’s advice to refrain from retaliation. He suggested Trump had used the tariffs to create maximum negotiating leverage. “This was his strategy all along,” Bessent told reporters. “And you might even say that he goaded China into a bad position.”

Bessent is the point person in the country-by-country negotiations that could address foreign aid and military cooperation as well as economic matters. Trump has spoken with leaders of Japan and South Korea, and a delegation from Vietnam met with U.S. officials on Wednesday to discuss trade matters, the White House said.

Bessent declined to say how long negotiations with the more than 75 countries that have reached out might take.

Trump said a resolution with China was possible as well. But officials have said they will prioritize talks with other countries.

“China wants to make a deal,” Trump said. “They just don’t know how quite to go about it.”

Trump told reporters that he had been considering a pause for several days. On Monday, the White House denounced a report that the administration was considering such a move, calling it “fake news.”

Earlier on Wednesday, before the announcement, Trump tried to reassure investors, posting on his Truth Social account, “BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!”

Later, he added: “THIS IS A GREAT TIME TO BUY!!!”

World

US, Russian officials meet in Florida for more Ukraine talks

Kyiv says it will not cede land that Moscow’s forces have failed to capture in nearly four years of war.

Published

on

U.S. negotiators met Russian officials in Florida on Saturday for the latest talks aimed at ending Russia’s war in Ukraine, as President Donald Trump’s administration tries to coax an agreement out of both sides to end the conflict, Reuters reported.

The Miami meeting followed U.S. talks on Friday with Ukrainian and European officials, the latest discussions of a peace plan that has sparked some hope of a resolution to the conflict that began when Russia launched its full-scale invasion in February 2022.

Russian President Vladimir Putin’s special envoy Kirill Dmitriev told reporters after meeting U.S. special envoy Steve Witkoff and Trump’s son-in-law Jared Kushner that the talks were constructive and would continue on Sunday. A White House official said the talks had concluded for the day.

“The discussions are proceeding constructively. They began earlier and will continue today, and will also continue tomorrow,” Dmitriev said.

Marco Rubio, Trump’s top diplomat and national security advisor, had said he might also join the talks.

U.S., Ukrainian and European officials earlier this week reported progress on security guarantees for Kyiv as part of the talks to end the war, but it remains unclear if those terms will be acceptable to Moscow.

A Russian source told Reuters that any meeting between Dmitriev and the Ukrainian negotiators had been ruled out.

In Kyiv, Ukrainian President Volodymyr Zelenskiy said on Saturday that Ukraine would back a U.S. proposal for three-sided talks with the United States and Russia if it facilitated more exchanges of prisoners and paved the way for meetings of national leaders.

“America is now proposing a trilateral meeting with national security advisers — America Ukraine, Russia,” Zelenskiy told local journalists in Kyiv.

U.S. intelligence reports continue to warn that Putin intends to capture all of Ukraine, sources familiar with the intelligence said, contradicting some U.S. officials’ assertions that Moscow is ready for peace.

Putin offered no compromise during his annual press conference in Moscow, insisting that Russia’s terms for ending the war had not changed since June 2024, when he demanded Ukraine abandon its ambition to join NATO and withdraw entirely from four Ukrainian regions Russia claims as its own territory, Reuters reported.

Kyiv says it will not cede land that Moscow’s forces have failed to capture in nearly four years of war.

Ukraine’s top negotiator Rustem Umerov said U.S. and European teams on Friday held talks and agreed to pursue their joint efforts.

“We agreed with our American partners on further steps and on continuing our joint work in the near future,” Umerov wrote on Telegram of the discussions in the United States, adding that he had informed Zelenskiy of the outcome of the talks.

The White House did not immediately respond to a request for comment.

Rubio told reporters on Friday that progress has been made in discussions to end the war but there is still a way to go.

“The role we’re trying to play is a role of figuring out whether there’s any overlap here that they can agree to, and that’s what we’ve invested a lot of time and energy and continue to do so. That may not be possible. I hope it is. I hope it can get done this month before the end of the year.”

Continue Reading

World

US hits Daesh in Syria with large retaliatory strikes, officials say

Published

on

The U.S. military launched large-scale strikes against dozens of Daesh targets in Syria on Friday in retaliation for an attack on American personnel, U.S. officials said.

A U.S.-led coalition has been carrying out airstrikes and ground operations in Syria targeting Islamic State suspects in recent months, often with the involvement of Syria’s security forces, Reuters reported.

President Donald Trump had vowed to retaliate after a suspected ISIS attack killed U.S. personnel last weekend in Syria.

Defense Secretary Pete Hegseth said the strikes targeted “ISIS fighters, infrastructure, and weapons sites” and that the operation was “OPERATION HAWKEYE STRIKE.”

“This is not the beginning of a war — it is a declaration of vengeance,” Hegseth said. “Today, we hunted and we killed our enemies. Lots of them. And we will continue,” he added.

Trump said on social media that the Syrian government fully supported the strikes and that the U.S. was inflicting “very serious retaliation.”

U.S. Central Command said the strikes hit more than 70 targets across central Syria, adding that Jordanian fighter jets supported the operation.

One U.S. official said the strikes were carried out by U.S. F-15 and A-10 jets, along with Apache helicopters and HIMARS rocket systems.

Syria reiterated its steadfast commitment to fighting Daesh and ensuring that it has “no safe havens on Syrian territory,” according to a statement by the foreign ministry.

Two U.S. Army soldiers and a civilian interpreter were killed on Saturday in the central Syrian town of Palmyra by an attacker who targeted a convoy of American and Syrian forces before being shot dead, according to the U.S. military. Three other U.S. soldiers were also wounded in the attack.

About 1,000 U.S. troops remain in Syria.

The Syrian Interior Ministry has described the attacker as a member of the Syrian security forces suspected of sympathizing with Daesh.

Syria’s government is led by former rebels who toppled leader Bashar al-Assad last year after a 13-year civil war, and includes members of Syria’s former Al Qaeda branch who broke with the group and clashed with Daesh.

Syria has been cooperating with a U.S.-led coalition against Daesh, reaching an agreement last month when President Ahmed al-Sharaa visited the White House.

Continue Reading

World

EU leaders agree joint borrowing to fund Ukraine, setting aside plan to use Russian frozen assets

Published

on

European Union leaders decided on Friday to borrow cash to fund Ukraine’s defence against Russia for the next two years rather than use frozen Russian assets, sidestepping divisions over an unprecedented plan to finance Kyiv with Russian sovereign cash.

“Today we approved a decision to provide 90 billion euros to Ukraine,” EU summit chairman Antonio Costa told a news conference early on Friday morning after hours of talks among the leaders in Brussels, Reuters reported. “As a matter of urgency, we will provide a loan backed by the European Union budget.”

The leaders also gave the European Commission a mandate to keep working on a so-called reparations loan based on Russian immobilised assets but that option proved unworkable for now, above all due to resistance from Belgium, where the bulk of the assets is held.

The idea of EU borrowing initially seemed unworkable as it requires unanimity and Hungary’s Russia-friendly Prime Minister Viktor Orban had opposed it. But Hungary, Slovakia and the Czech Republic agreed to let the scheme go ahead as long as it did not impact them financially.

The EU leaders said Russian assets, totalling 210 billion euros in the EU, will remain frozen until Moscow pays war reparations to Ukraine. If Moscow ever takes such a step, Ukraine could then use they money to pay back the loan.

USE OF RUSSIAN ASSETS TO COMPLEX AT THIS STAGE

“This is good news for Ukraine and bad news for Russia and this was our intention,” German Chancellor Friedrich Merz said.

The stakes for finding money for Kyiv were high because without the EU’s financial help, Ukraine would run out of money in the second quarter of next year and most likely lose the war to Russia, which the EU fears would bring closer the threat of Russian aggression against the bloc.

The decision follows hours of discussions among leaders on the technical details of an unprecedented loan based on the frozen Russian assets, which turned out to be too complex or politically demanding to resolve at this stage.

The main difficulty was providing Belgium, where 185 billion euros of the total Russian assets in Europe are held, with sufficient guarantees against financial and legal risks from potential Russian retaliation for the release of the money to Ukraine.

“There were so many questions on the Reparations Loan, we had to go to Plan B. Rationality has prevailed,” Belgian Prime Minister Bart De Wever told a news conference. “The EU has avoided chaos and division and remained united,” he said.

HUNGARY SCORES A WIN

With public finances across the EU already strained by high debt levels, the European Commission had proposed using the Russian assets for a loan to Kyiv or joint borrowing against the EU budget.

Using the latter option allowed Orban to claim a diplomatic victory.

“Orban got what he wanted: no reparation loan. And EU action without participation of Hungary, Czech Republic and Slovakia,” one EU diplomat said.

‘CAN’T AFFORD TO FAIL’

Several EU leaders arriving at the summit said it was imperative they find a solution to keep Ukraine financed and fighting for the next two years. They were also keen to show European countries’ strength and resolve after U.S. President Donald Trump last week called them “weak”.

“We just can’t afford to fail,” EU foreign policy chief Kaja Kallas said.

Ukrainian President Volodymyr Zelenskiy, who took part in the summit, urged the bloc to agree to use the Russian assets to provide the funds he said would allow Ukraine to keep fighting.

“The decision now on the table – the decision to fully use Russian assets to defend against Russian aggression – is one of the clearest and most morally justified decisions that could ever be made,” he said.

Continue Reading
Advertisement
Advertisement
Advertisement
Advertisement

Trending

Copyright © 2025 Ariana News. All rights reserved!