Key moments
Following his reaffirmed commitment not to extend his current tariffs, Donald Trump has now announced a 90-day pause for majority of countries apart from China. What prompted this shift in position?
My associate, Jonathan Freedland, interviews James Bennet from the Economist to discuss what may have compelled the president to amend his stance and the potential implications, in the latest episode of the Politics Weekly America podcast:
Helen Davidson
China has upped its tariffs on US imports to 125% amid the ongoing trade conflict with Washington, mere hours after Xi Jinping stated that “there are no winners in a tariff conflict”.
Xi made these remarks during discussions with the Spanish prime minister and extended an invitation to the EU to collaborate with China against “bullying”, signaling an effort to strengthen alliances with other trading partners.
The Chinese Ministry of Commerce announced on Friday its increase from previous 84% tariffs on all US goods to 125%, reiterating that China is prepared to “fight to the last.” They suggested that current tariff levels mean there’s no market for US products in China.
“If the US persists with tariffs on Chinese products exported to the US, China will not respond,” adding that other counteractions might follow.
Markets exhibited continued declines on Friday, as President Emmanuel Macron characterized the temporary 90-day tariff cease-fire initiated by the US president as “fragile”.
Asian stock markets mirrored the downturn of Wall Street on Friday, with Japan’s Nikkei dropping nearly 5%, and Hong Kong poised for its most significant weekly drop since 2008. Oil prices are also anticipated to fall for a second consecutive week.
