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    Brazil’s president seeks ‘indestructible’ links with China amid Trump trade war

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    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 of China and declaring his desire for the South American country to not “only look one way” towards the US. “We have decided to take a profound step forward between China and Latin America,” Petro said.Chile’s Gabriel Boric has also travelled to Beijing to attend Tuesday’s meeting between members of the Community of Latin American and Caribbean States (Celac) and Chinese representatives.Addressing hundreds of Chinese and Brazilian business chiefs in the Chinese capital on Monday, Lula hit out at Trump’s tariffs, saying he could not accept the measures “that the president of the US tried to impose on planet Earth, from one day to the next”.The Brazilian leftist said he hoped to build an “indispensable” relationship with China – already Brazil’s top trading partner – and heaped praise on his Communist party hosts as his officials announced $4.6bn (£3.5bn) of Chinese investment in their country. On Tuesday, Lula is scheduled to meet China’s leader, Xi Jinping, who is expected to return the visit in July, when Xi travels to the Brics summit in Rio.“China has often been treated as though it were an enemy of global trade when actually China is behaving like an example of a country that is trying to do business with countries which, over the past 30 years, were forgotten by many other countries,” said Lula, who is expected to seek major Chinese investments in Brazilian infrastructure projects.The visit of the three South American leaders to China underlines the east Asian country’s rapidly growing footprint in a region where, over the past 25 years, it has become a voracious consumer of commodities such as soybeans, iron ore and copper. Chinese companies have also poured into the region. Electric cars made by the Chinese manufacturer BYD can be seen cruising the streets of Brazilian cities, from Brasília to Boa Vista, deep in the Amazon.The visits also come amid global jitters over Trump’s volatile presidency and Latin American anxiety and suspicion over the US president’s plans for a region where he has threatened to “take back” the Panama canal – by force if necessary.Matias Spektor, an international relations professor at the Getúlio Vargas Foundation, a Brazilian thinktank and university, said the presence of the three South American presidents in Beijing underscored how, in the Trump era, with the US in retreat, such leaders were increasingly reaching out to other parts of the world.“It tells us that countries around the world are willing to go out … to exploit all the opportunities that are there in the international system – and there are many. Because, as America turns away from free trade and as America adopts a policy that is … instead of transactional, predatory – countries have an incentive to engage with those who are transactional,” Spektor said, pointing to recent trips Lula made to Japan and Vietnam.“[Lula] is very proactively trying to open trade for Brazil at a time when America is undoing the previous rules of the game, and the new rules of the game are not yet born … These [Latin American] countries want to shape the norms that are likely to emerge now. And those rules are not going to emerge in Washington DC. They are going to be made globally,” Spektor added.Spektor said Latin American leaders such as Lula had long considered the world a multipolar place. “What happened on 20 January [with Trump’s return to power] is that the barrage of policy change coming from Washington DC has accelerated the belief that was already in place that the axis of global power has for a while been moving towards the east, and somewhat towards the south.” More

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      China and US agree 90-day pause to trade war initiated by Donald Trump

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      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%.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 to 125% on Chinese imports, with Beijing responding with equivalent measures.China also imposed non-tariff measures, such as restricting the export of critical minerals that are essential to US manufacturing of hi-tech goods.The US trade representative, Jamieson Greer, said China’s retaliation had been disproportionate and amounted to an effective embargo on trade between the world’s two biggest economies.With the 115% deduction, Chinese duties on US goods will be lowered to 10%, while the US tax on Chinese goods will be lowered to 30%. That is because the US tariffs include a 20% rate imposed by Trump before the latest trade war, which the president said was related to China’s role in the US’s fentanyl crisis. The fentanyl-related tariff will still apply.A spokesperson for China’s ministry of commerce said: “This move meets the expectations of producers and consumers in both countries, as well as the interests of both nations and the common interest of the world.“We hope that the US side will, based on this meeting, continue to move forward in the same direction with China, completely correct the erroneous practice of unilateral tariff hikes, and continually strengthen mutually beneficial cooperation.”China’s yuan jumped to a six-month high on the signal that the trade war would be paused. Up to 16m jobs were at risk in China, according to some estimates, while the US faced rising inflation and empty shelves thanks to dizzying tariffs on the biggest supplier of US goods.Bessent said he was impressed by the level of Chinese engagement on the fentanyl issue during the talks in Switzerland. “For the first time the Chinese side understood the magnitude of what is happening in the US,” Bessent said.A joint statement published by the US and China on Monday said that both sides would “continue to advance related work in a spirit of mutual openness, continuous communication, cooperation and mutual respect”.William Xin, the chair of the hedge fund Spring Mountain Pu Jiang Investment Management, told Reuters: “The result far exceeds market expectations. Previously, the hope was just that the two sides can sit down to talk, and the market had been very fragile. Now, there’s more certainty. Both China stocks and the yuan will be in an upswing for a while.”skip past newsletter promotionafter newsletter promotionHu Xijin, the former editor of the nationalist Chinese tabloid the Global Times, said on social media the agreement was a “great victory for China in upholding the principles of equality and mutual respect”. Hu noted on Weibo that the recently agreed UK-US trade deal maintained the US’s 10% tariff on UK imports, “while the UK did not implement reciprocal measures”.Wang Wen, the head of the Chongyang Institute for Financial Studies at Renmin University in Beijing, said: “This is an unexpected achievement in Sino-US tariff negotiations.”However, Wang also urged caution, as he said the agreement “does not represent the resolution of the structural contradictions between China and the United States, nor does it mean that there will be no friction and serious differences between China and the United States in the future”.Stock markets across Europe rose in the aftermath of the US-China announcement. Germany’s DAX index jumped by 1.5%, with Mercedes-Benz, Daimler Trucks and BMW among the biggest risers. France’s CAC index rose by 1.2%.Additional research by Lillian Yang More

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      US treasury secretary says ‘there is a path’ with China over tariff negotiations

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      The US treasury secretary, Scott Bessent, said “there is a path” to an agreement with China over tariffs after he had interactions with his Chinese counterparts last week in Washington.“I had interaction with my Chinese counterparts, but it was more on the traditional things like financial stability, global economic early warnings,” Bessent told ABC News’s This Week on Sunday, explaining that he had spoken to the Chinese during International Monetary Fund meetings in Washington. “I don’t know if President Trump has spoken with President Xi,” he added.On Friday, Donald Trump asserted in an interview that tariff negotiations were under way with China, comments he repeated on his way to Rome to attend the funeral of Pope Francis, but were later denied by China’s foreign ministry, which said the US “should stop creating confusion”.A day later, China’s foreign minister, Wang Yi, said Beijing abides by international rules on US-imposed tariffs and would seek solidarity with other countries.“Certain countries adhere to their own priorities, engage in bullying pressure and coercive transactions, and provoke trade wars for no reason, exposing their extreme egoism,” Wang said on the sidelines of a regional meeting in Kazakhstan.On Sunday, Bessent attempted to weave through the conflicting signals over what progress was being made to de-escalate a trade war threatening to sap global growth.“The Chinese will see this high tariff level is unsustainable for their business,” he said. He added that Beijing’s denial that negotiations are ongoing was for a Chinese audience.“I think they’re playing to a different audience,” Bessent said. “We have a process in place and, again, I just believe these Chinese tariffs are unsustainable.“The first path will be, again, a de-escalation, which I think the Chinese are going to have to have. Then I think there can be an agreement in principle, these 17 or 18 important trade deals that we’re negotiating.”But Bessent warned that “a trade deal can take months” and said negotiations with other significant US trading partners were progressing. “Some of those are moving along very well, especially the – with the Asian countries,” he said, praising Trump’s negotiating strategy.“In game theory it’s called strategic uncertainty,” he said. “So, you’re not going to tell the person on the other side of the negotiation where you’re going to end up. And nobody’s better at creating this leverage than President Trump.”The treasury secretary’s comments come as top US retailers have reportedly warned the White House that tariffs will cause empty store shelves and price hikes within weeks.Bloomberg reported that Chinese fast-fashion giant Shein raised US prices of its products from dresses to kitchenware on Friday ahead of imminent tariffs on small parcels. The average price for the top 100 products in the beauty and health category increased by 51%, and more than 30% for home and kitchen products and toys, including a 377% increase in the price of a 10-piece set of kitchen towels.Trump predicted on Sunday that tariffs would ultimately benefit US taxpayers and boost employment. “When Tariffs cut in, many people’s Income Taxes will be substantially reduced, maybe even completely eliminated,” Trump wrote in a Truth Social post.“Focus will be on people making less than $200,000 a year. Also, massive numbers of jobs are already being created, with new plants and factories currently being built or planned.” He called it a “bonanza” for Americans and said “the external service is happening”.Separately on Sunday, US agriculture secretary Brooke Rollins said the US was holding daily conversations with China over tariffs. “Every day we are in conversation with China, along with those other 99, 100 countries that have come to the table,” Rollins said on CNN’s State of the Union.Rollins said the president was prepared to bail out American farmers if the trade war continues squeezing commodity exports, particularly soybean and pork sales to China.“First of all, the prayer is that that doesn’t need to happen – but secondly, if it does, for the short term, just as in Trump 1, we are preparing for that,” Rollins said.Rollins said it could take months before it is known whether a bail-out is needed.“I don’t think we’re going to need it, but if we do, it will be there,” Rollins said. More

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      Trump administration investigating California university over foreign gifts

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      The Trump administration launched an investigation into the University of California, Berkeley, on Friday centered on foreign funding, making it the latest university to be targeted by the federal government.The investigation revives criticism from several years ago about the university’s partnership with China’s Tsinghua University. It comes after Donald Trump earlier this week signed a series of executive orders focused on universities that he views as liberal adversaries to his political agenda.One order called for harder enforcement of Section 117, a federal law requiring colleges to disclose foreign gifts and contracts valued at $250,000 or more.The Department of Education’s office of general counsel will investigate “UC Berkeley’s apparent failure to fully and accurately disclose significant funding received from foreign sources,” education secretary Linda McMahon said in a statement.UC Berkeley denied the government’s claims, saying that for the last two years “UC Berkeley has been cooperating with federal inquiries regarding 117 reporting issues, and will continue to do so.”The department cited media reports from 2023 about UC Berkeley failing to disclose “hundreds of millions of dollars in funding from a foreign government” but didn’t mention the country.On May 2023, the Daily Beast reported that UC Berkeley failed to report it got $220m from the Chinese government to build a joint Tsinghua-Berkeley Shenzhen Institute (TBSI), which UC Berkeley and Tsinghua University opened in 2014 in the city of Shenzhen to focus on “strategic emerging industries”, according to the institute’s website.Last year, a report by the Republican members of the House select committee on the Chinese Communist party found that US tax dollars have contributed to China’s technological advancement and military modernization when American researchers worked with their Chinese peers in areas such as hypersonic weapons, artificial intelligence, nuclear technology and semiconductor technology.In response to the report, UC Berkeley said Berkeley’s researchers “engage only in research whose results are always openly disseminated around the world” and the school was “not aware of any research by Berkeley faculty at TBSI conducted for any other purpose”. The university also said then it would unwind its partnership.skip past newsletter promotionafter newsletter promotionThe university said on Friday it’s no longer affiliated with TBSI.Last week, the Department of Education demanded records from Harvard over foreign financial ties spanning the past decade, accusing the school of filing “incomplete and inaccurate disclosures”. Trump’s administration is sparring with Harvard over the university’s refusal to accept a list of demands over its handling of pro-Palestinian protests as well as its diversity, equity and inclusion efforts. More

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      California’s economy surpasses Japan’s as it becomes fourth largest in world

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      California’s economy has surpassed Japan’s, making the Golden state the fourth largest economy in the world, governor Gavin Newsom announced on Thursday.The state’s nominal GDP reached $4.1tn, according to data from the International Monetary Fund and the US Bureau of Economic Analysis, edging out Japan’s $4.02tn nominal GDP. California now ranks behind the US at $29.18tn, China at $18.74tn and Germany at $4.65tn.Along with the tech and entertainment industry capitals, the state, which has a population of nearly 40 million people, is the center for US manufacturing output and is the country’s largest agricultural producer.“California isn’t just keeping pace with the world – we’re setting the pace. Our economy is thriving because we invest in people, prioritize sustainability, and believe in the power of innovation,” Newsom said in a statement.The state has outperformed the world’s top economies with a growth rate in 2024 of 6% compared with the US’s 5.3%, China’s 2.6% and Germany’s 2.9%. This week’s new rankings come six years after California surpassed the United Kingdom and became the world’s fifth largest economy.Newsom noted, however, that the Trump administration’s agenda endangers California’s economic interests.“And, while we celebrate this success, we recognize that our progress is threatened by the reckless tariff policies of the current federal administration. California’s economy powers the nation, and it must be protected.”skip past newsletter promotionafter newsletter promotionCalifornia last week became the first state to sue the federal government over Donald Trump’s tariff policies, and has argued that the president’s actions are unlawful and that constitution explicitly grants Congress the power to impose tariffs.“No state is poised to lose more than the state of California,” Newsom said during a press conference announcing the lawsuit. “It’s a serious and sober moment, and I’d be … lying to you if I said it can be quickly undone.”California is a major contributor to economic growth nationally, with the money it sends to the federal government outpacing what it receives in federal funding by $83bn, according to a statement from Newsom’s office.Despite an enormous shortage of affordable housing that has fueled a homelessness crisis in the state, the population has grown in recent years. Meanwhile, last year the state reported its tourism spending had hit an all-time high – though California has seen a drop in some areas.Canadian tourism in California was down 12% in February compared with the same month last year amid Trump’s tariff war. In response, the state has announced a new campaign to draw Canadians back, while one city has put up pro-Canada signs across its downtown. More

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      Stock markets rise as Trump backtracks on high China tariffs and firing Fed chair

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      Stock markets have risen around the world after Donald Trump said his tariffs on China would come down “substantially” and he had “no intention” of firing the chair of the US central bank, Jerome Powell.Weeks of tough talk on trade from White House officials have rattled investors and Trump now appears to be softening his tone. The president told reporters in Washington on Tuesday he planned to be “very nice” to China in trade talks and that tariffs could drop in both countries if they could reach a deal, adding: “It will come down substantially, but it won’t be zero.”Overnight in Asia, Japan’s Nikkei rose by nearly 2%, Hong Kong’s Hang Seng was up 2.4% and the South Korean Kospi gained 1.6%.The rally spread to Europe in early trading on Wednesday, with the UK’s FTSE 100 index up 1.6%, while the Italian FTSE MIB rose by 1.1%. Germany’s Dax gained 2.6% and France’s Cac 2.1%.Meanwhile, US stocks opened on a high Wednesday morning, with the Dow rallying over 800 points, and the Nasdaq Composite up over 3%. The rally stalled in the afternoon but all the major stock markets managed to end the day higher.On Wednesday, the US treasury secretary, Scott Bessent, also took a softer, optimistic tone on China in remarks delivered at the Institute of International Finance in Washington DC, saying that China “knows it needs to change”.“If China is serious on less dependence on export-led manufacturing growth and rebalancing toward a domestic economy … let’s rebalance together,” Bessent said. “This is an incredible opportunity.”Bessent told investors in a private meeting on Tuesday that he expects a “de-escalation” of the trade war between China and the US in the “very near future”.“‘America First’ does not mean America alone. To the contrary, it is a call for deeper collaboration and mutual respect among trade partners,” Bessent said on Wednesday.Investor confidence also grew after Trump told reporters he would not fire Powell, the chair of the US Federal Reserve, reversing the previous day’s losses triggered by the president calling the central bank boss a “major loser”.The president has criticised the Fed chair repeatedly for refusing to cut interest rates and last week hinted that he believed he could dismiss Powell before his term as the head of the central bank comes to an end in May next year.Trump wrote on his social media platform, Truth Social, last week that Powell’s termination “could not come fast enough”, after the Fed chair raised concerns about the impact of trade tariffs on the American economy.However, the suggestion from the White House that the US central bank will remain independent helped stocks to rise on Wednesday, as well as the prospect of lower tariffs on Chinese imports to the US.The US dollar, which hit a three-year low on Tuesday before recovering, rose by 0.25% against a basket of major currencies.Oil prices also rose on Wednesday, with Brent crude rising above $68 (£51) a barrel amid hopes that lower tariffs will be less damaging to the global economy. The rise was also led by new US sanctions targeting Iranian liquefied petroleum gas and the crude oil shipping magnate Seyed Asadoollah Emamjomeh.Meanwhile, gold, which is traditionally viewed by investors as a safe haven asset during volatile periods, retreated from the new high of $3,500 (£2,620) an ounce it hit on Tuesday, to trade at about $3,307. More

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      The mysterious firing of a Chinese professor has Asian students on edge: ‘Brings chills to our spines’

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      When FBI and Department of Homeland Security (DHS) agents descended recently on two homes owned by Xiaofeng Wang, a Chinese national and cybersecurity professor at Indiana University, many in the idyllic college town of Bloomington were shocked.In December, Wang had been questioned by his employers about allegedly receiving undisclosed funding from China on a project that also received US federal research grants. On the same day of the home raids, Wang was fired from his longstanding post at Indiana University over email – a move that goes against the university’s own policy.But Wang hasn’t been charged with any offence, and his lawyer says no criminal charges are pending.The incident has driven fear into the hearts of Bloomington’s Asian community of faculty and students who fear a political motivation.“I study at the computer science department, and I’ve overheard Chinese professors talking about how worried they are that something similar could happen them, too,” says a Chinese PhD student who came to Bloomington from Suzhou, Jiangsu province, last September and who asked not to be named given the sensitivity of the issue.During the first Trump administration, the Department of Justice created the China Initiative in an effort to find and prosecute spies for Beijing working in US research and development sectors. At the time, it was criticized by rights groups for fueling racial profiling and violence against Asian Americans, and a review by the Biden administration saw the effort ended in 2022.Now as before, Trump has made targeting universities whose leadership and faculty he believes run against his own agenda a key element of his second term.For the Massachusetts Institute of Technology professor Gang Chen, what happened to Wang “brings chills to our spines”.“What is particularly troubling in this case is that Indiana University fired him and his wife without due process, presuming guilt instead of innocence,” Chen says.Chen, who has US and Chinese nationality, found himself charged by the Department of Justice for allegedly failing to disclose links to Chinese organizations on a grant application for a federally funded project, with just weeks remaining in Trump’s first term, in January 2021.The charges were dismissed a year later.“The investigations on Professor Wang and his firing creates huge fear among researchers of Chinese descent, especially students and postdoctorates from China. It is clear that such events, together with legislation and hostile rhetoric, are driving out talents. I learned that many Chinese students and postdoctorates here are considering leaving the US.”More students from China come to the US to study and research at third-level institutions than from any other country.The fear of Chinese spies operating in the US isn’t completely unfounded.A report released recently by US intelligence agencies found that China remains the top cyber threat to America, and many politicians on the right believe smaller colleges in low-key parts of the country such as the midwest could be used as gateways into the US by the Chinese Communist party.In October, five Chinese students at a college in Michigan were charged with spying on a military training camp where Taiwanese soldiers participate. This month, information on several Chinese students at Purdue University, also in Indiana, was sought by members of Congress, claiming national security interests, though no charges have been brought.But the vast majority of the estimated 300,000 Chinese academics and students in the US today are in the country to legitimately contribute to research and to learn, say experts who fear that Trump’s targeting of colleges deemed to be antisemitic may now be shifting to the midwest.Last month, the Department of Education named Indiana University Bloomington among 60 colleges under investigation for alleged antisemitic discrimination, a move that could result in funding cuts.It’s not only Chinese academics and students who could be affected.Universities in Illinois, Indiana and other heartland states are home to some of the largest Chinese student populations in the country.Nearly half of Urbana-Champaign’s combined population of 130,000 people in neighboring Illinois is made up of college students and staff. Nearly six thousand are students from China.In Bloomington, which has a population of under 80,000 people, close to 50,000 are students, with nearly 10% coming from overseas.Midwestern colleges and the communities around them are keen to attract international students and rely heavily on the money they bring with them; about 2,000 Chinese students enroll at Indiana University every year. International undergrad students are charged an average of $42,000 in tuition and fees, alongside $14,000 in housing and food, bringing hundreds of millions of dollars into the college and town.Over the years, these and other small university towns have come to rely on international students to prop up their economies.A couple of blocks west of the University of Indiana Bloomington campus, a grouping of Chinese, Korean and Asian eateries cater to the college’s large Asian community. The sidewalk in front of the Longfei Chinese restaurant is dotted with food signs written in Mandarin. The restaurant’s manager, however, says he believes that the political problems between Washington and Beijing have seen the number of Chinese students coming to the US – and through his doors – fall in recent years.The Chinese PhD student, who one recent morning is here grabbing lunch, says his student visa status allows him to stay in the US for up to five years, but he and his Chinese colleagues are worried that the Trump administration may cut that short.“I’m concerned with President Trump’s hostility against China and this kind of hostility may affect Chinese students and professors, and the funding that we get,” he says.“I’m concerned about the impact on my life.”Faculty at the department where Wang worked for more than two decades have called for Indiana University to revoke his dismissal. His profile page on the University’s website has been removed and college authorities have not commented on his firing.“Neither Prof Wang nor Ms Ma [his wife, who worked as a library analyst at the same university] have been arrested … further, there are no pending criminal charges as far as we are aware,” says Jason Covert, a lawyer at Taft Stettinius & Hollister, a firm representing Wang and Ma.“They look forward to clearing their names and resuming their successful careers at the conclusion of this investigation.”Covert would not say whether Wang planned to remain in the US. More

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      US begins inquiry into pharmaceutical and chip imports in bid to impose tariffs

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      The Trump administration is kicking off investigations into imports of pharmaceuticals and semiconductors into the US as part of an attempt to impose tariffs on both sectors on national security grounds, notices posted to the Federal Register on Monday showed.The filings scheduled to be published on Wednesday set a 21-day deadline from that date for the submission of public comment on the issue and indicate the administration intends to pursue the levies under authority granted by the Trade Expansion Act of 1962. Such inquiries need to be completed within 270 days after being announced.The Trump administration has started 232 investigations into imports of copper and lumber, and inquiries completed in the US president’s first term formed the basis for tariffs rolled out since his return to the White House in January on steel and aluminum and on the auto industry.The US began collecting 10% tariffs on imports on 5 April. Pharmaceuticals and semiconductors are exempt from those duties, but Trump has said they will face separate tariffs.Trump said on Sunday he would be announcing a tariff rate on imported semiconductors over the next week, adding there would be flexibility with some companies in the sector.The US relies heavily on chips imported from Taiwan, something the then president, Joe Biden, sought to reverse by granting billions in Chips Act awards to lure chipmakers to expand production in the US.Taiwan’s economy minister, Kuo Jyh-huei, said its government would run simulations for various levels of tariffs on semiconductors and seek talks with the US.Taiwan is home to TSMC, the world’s leading producer of the most advanced chips and a main contributor to the island’s GDP. Speaking to reporters outside parliament, Kuo said he would seek to ensure “fair competition” for the Taiwanese industry.The Taiwanese and US chip sectors are complementary, he added.The investigation announced on Monday will include pharmaceuticals and pharmaceutical ingredients as well as other derivative products, the notice showed.Drugmakers have argued that tariffs could increase the chance of shortages and reduce access for patients. Still, Trump has pushed for the fees, arguing that the US needs more drug manufacturing so it does not have to rely on other countries for its supply of medicines.Companies in the industry have lobbied Trump to phase in tariffs on imported pharmaceutical products in hopes of reducing the sting from the charges and to allow time to shift manufacturing.Large drugmakers have global manufacturing footprints, mainly in the US, Europe and Asia, and moving more production to the US involves a major commitment of resources and could take years. More

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      ‘The sky won’t fall’: China plays down Trump tariff risks as stock markets rally

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      China has played down the risk of damage to its exports from Donald Trump’s tariffs, with an official saying the “the sky won’t fall”, as stock markets rose on Monday amid signs of a retreat on electronics restrictions.The world’s second-largest economy has diversified its trade away from the US in recent years, according to Lyu Daliang, a customs administration spokesperson, in comments reported by state-owned agency Xinhua.China has retaliated forcefully to Washington’s tariffs, with 125% levies on US imports against the US’s total of 145% border taxes on goods moving the other way. The trade war has prompted turmoil on financial markets since Trump first revealed tariffs on every country in the world on 2 April. Since then he has partly retreated on the highest levies on most trading partners for at least 90 days, but has doubled down in his spat with China.The White House offered further relief over the weekend with an exemption from the steepest tariffs for electronics including smartphones, laptops and semiconductors. Trump officials later appeared to walk that back with the commerce secretary, Howard Lutnick, saying such devices would be “included in the semiconductor tariffs which are coming in probably a month or two”.Trump said on Sunday night on his social network, Truth Social, that “NOBODY is getting ‘off the hook’”, highlighting that smartphones are still subject to 20% levies and suggesting they could still rise higher.However, investors on Monday appeared unconvinced by Trump’s attempts to play down the retreat. Japan’s Nikkei gained 1.2% while Hong Kong’s Hang Seng rose by 2.2% and the Shanghai and Shenzhen exchanges climbed by 0.8% and 1.2%, respectively. European stock market indices also jumped in opening trades, with London’s FTSE 100 up by 1.6%, Germany’s Dax up 2.2%, and France’s Cac 40 up 2%.“The sky won’t fall” for Chinese exports,” China’s Lyu said. “These efforts have not only supported our partners’ development but also enhanced our own resilience”.The customs report also played up China’s “vast domestic market”, and said “the country will turn domestic certainty into a buffer against global volatility”. China has increasingly tried to stimulate private consumption.skip past newsletter promotionafter newsletter promotionChina’s president, Xi Jinping, on Monday criticised the US tariffs, during a visit to Vietnam. Vietnam has in recent decades grown to become the eighth largest source of goods for US consumers, but it is facing the threat of 46% tariffs when Trump’s 90-day pause expires.In an article in a Vietnamese newspaper, Xi said that a “trade war and tariff war will produce no winner, and protectionism will lead nowhere”. More