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      This pause in the trade war will be brief. Small businesses, plan accordingly

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      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 an analysis done by the Wall Street Journal.That’s a big number. Maybe that won’t deter people from buying underwear at Target. But for companies that rely on steel and aluminum, semiconductors, synthetic fabrics, plastics, minerals, coatings and solvents as well as certain bearings, motors, pumps and parts, a 30-40% hike is a major impact on their margins, which will affect their spending and investments. Ultimately, the costs of the end products that use these materials will also rise as companies simply pass them down.Just as important, Trump’s animosity towards China – unfounded or not – isn’t going to just magically disappear. He’s called the Chinese cheaters, polluters and thieves. And his past actions – particularly in his first administration – do not bode well for a quick resolution to this issue.In 2018, the Trump administration not only imposed onerous tariffs on China but also issued some very harsh requirements to address trading issues with its closest economic rival.There were specific quotas set to limit our trade deficit. There were demands made to reduce the Chinese requirement forcing American companies to share or transfer technology with their Chinese counterparts. There were rules aimed at stopping the alleged (ha, ha) stealing of data and intellectual property by the Chinese.The problem is that none of this happened. What happened – shortly after the negotiations started – was Covid. And then 2020 and a new administration. But don’t think that Trump won’t raise these issues again. He will, and when this happens we’ll be back to the same place we started: excessive tariffs and a trade war with China.That doesn’t mean that businesses are completely stuck. Many – those that have the funds – are using the tariff suspension to buy up products from China like it’s a fire sale at Costco on Black Friday. Others are contracting with bonded warehouses and storage facilities in free-trade zones to accept products that are temporarily tariff-free, hoping that when they pull materials from these storage units those rates will have come down.I have clients who are aggressively searching for alternative suppliers. I have others who are bringing their assembly and manufacturing back to the US. Those that aren’t able to make these kinds of investments are trying to work out how and how much they can change pricing and what the market will take. A few have already created special line items on their invoices to separate out the tariff charge in an effort to say: “Hey, don’t blame me for this stuff!”My smartest clients started doing this stuff the day after Trump was elected. They listened to what he’d said during the previous couple of years. They read the writing on the wall. Now they’re ahead of the game. Good for them.Companies that didn’t do this – especially small businesses that have fewer resources and are more reliant on just a supplier or two – are in trouble, particularly if they buy from China. For any business still reliant on Chinese suppliers and markets, this pause isn’t going to last as long as you think. There will be a lot more coming in this trade war – and let’s hope it doesn’t turn into an actual war. The outlook is precarious and risky. Trump is volatile and emotional and has a history of knocking China. Plan accordingly. More

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      Gone in 40 days: how Trump’s ‘liberation day’ tariff assault unraveled

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      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, and persuaded to walk back several tariff threats in the opening months of his second. But back in early April, he was determined to plough ahead.“April 2nd, 2025, will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed, and the day that we began to make America wealthy again,” Trump declared at an event in the White House Rose Garden, before an audience of his top officials and supporters.The measures were blunt and severe: a blanket 10% tariff on all imported goods, and higher individualized rates, of up to 50%, on dozens of markets – those of economic allies and rivals alike – deemed to have treated the US poorly on trade.‘Be cool’First came the questions. How exactly did the Trump administration come up with such an array of specific duties to impose upon goods from so many countries and territories? And why was a group of barren, uninhabited islands near Antarctica among them?Then came the panic. Global stock markets tanked, with Wall Street enduring its steepest falls since the onset of the Covid-19 pandemic five years ago, as the president repeatedly insisted he was serious this time.Trump’s officials were sent out to hold the line. “The announcement today is the most significant action on global trade policy that has taken place in our lifetimes,” said Stephen Miller, his deputy chief of staff for policy. “We’re just going to have to wait and see” what happens, the treasury secretary, Scott Bessent, told Bloomberg. One thing’s for sure, the commerce secretary, Howard Lutnick, told CNN: “The president is not going to back off.”On day five of the new chapter, the 10% baseline tariffs came into force. On day seven, the higher, individualized rates followed. Beijing vowed to retaliate. Business leaders, including some who had backed Trump’s run for the White House, urged him to reconsider.A sell-off in treasury bonds, typically deemed a safe haven during periods of economic volatility, took hold. “BE COOL! Everything is going to work out well,” Trump wrote on Truth Social, adding a few minutes later: “THIS IS A GREAT TIME TO BUY!!! DJT”This advice seemed prescient four hours later. Seven days into the new chapter, with his individualized tariffs imposed for all of 13 hours, Trump announced a 90-day pause – in effect reducing the universal duty on all US imports from almost all countries to 10% – and markets surged higher.Almost all countries, that is, except China. Beijing’s pledge to hit back infuriated the president, who blamed its “lack of respect” as he announced a new US tariff of 125% (in effect, once other duties were included, 145%) on Chinese goods. It retaliated in kind.Getting yippyThe same officials who had been dispatched to defend Trump’s initial plan were sent out again, to explain his latest climbdown.“You have been watching the greatest economic master strategy from an American President in history,” Miller claimed on X.“Many of you in the media clearly missed The Art of the Deal,” the press secretary, Karoline Leavitt, scolded reporters, referring to the president’s 1987 bestseller, in which the real estate tycoon presented himself as a consummate dealmaker.While his aides claimed that more than 75 countries had been in touch following his initial tariff announcement, even the president struggled to present the reversal as part of a carefully orchestrated negotiating strategy. Asked what had prompted it, Trump told reporters people had been “getting a little bit yippy” about his plan.But some of the US’s largest companies were still feeling pretty yippy. Apple, for example, relies on factories in China to churn out the iPhone, which is responsible for almost half its business.Late on day 10, away from the noisy press gaggles and all-caps social media posts, US Customs and Border Protection posted a list of products that would be exempt from the Chinese tariffs – including smartphones, computers and semiconductor chips.While the administration had walked back much of Trump’s initial plan, concern lingered over what remained. Trump maintained that high tariffs were the way forward, but fears of widespread shortages and dramatic price increases loomed large. Polling made clear consumers were increasingly concerned.On day 28, at the end of a cabinet meeting, the president tried to play down the risks of his assault on China. “Well, maybe the children will have two dolls instead of 30 dolls, you know,” he said. “And maybe the two dolls will cost a couple of bucks more than they would normally.”Blame gameEarlier that morning, dismal economic figures for the first quarter had underlined how – as the last chapter drew to a close – the mere threat of Trump’s economic assault appeared to dent growth. US gross domestic product (GDP) shrank for the first time in three years, abruptly turning negative after a spell of robust growth as imports surged 41% while companies scrambled to pre-empt tariffs.Trump raced to pin the blame on his predecessor. “I think the good parts are the Trump economy and the bad parts are the Biden economy,” he told NBC’s Meet the Press.Many economists said the growth decline in the first quarter, as firms braced for Trump’s new chapter, raised troubling questions about the second, when the president finally launched it at his “liberation day” event.Aside from dolls, the administration started to indicate it might be willing to adjust tariffs on China that were hitting goods – like baby car seats and cribs – that the US almost entirely imports from the country. Such exemptions were “under consideration”, Bessent told Congress, potentially averting a spike in prices for young families.But as the weeks drew on, after promising his trade strategy would prompt countries around the world to trip over themselves to strike deals with the US, Trump was finding it harder to explain why none had materialized.On day 34, as questions mounted, he complained the media had become fixated. “You keep writing about deals, deals,” he said, adding that he wished journalists would stop asking. “Some deals” would be signed, the president said, but tariffs were a “much bigger” focus.On day 36, the first deal was declared done. Trump summoned back reporters to unveil what he called a “maxed-out deal that we’re going to make bigger” with the UK. In reality, there was still work to do: both he and Keir Starmer, the British prime minister, conceded certain details had yet to be finalized.By the next morning, Trump’s focus had returned to China. Bessent was preparing for talks with the country’s officials in Geneva, fueling hopes that the world’s two largest economies might lower their eye-watering tariffs. “80% Tariff on China seems right! Up to Scott B,” the president wrote on social media.‘This is going to crush us’Trump was also watching the liberal MSNBC network, where the business commentator Stephanie Ruhle argued his strategy on tariffs was not working. “You’re seeing day in, day out, more business leaders – whether it’s Warren Buffett, or Jamie Dimon, or Ken Griffin, on big global stages – saying this is going to crush us economically,” she said. “And then you’ve got congressmen, senators, from every state saying to this White House: our small businesses are … dying here.“I’m not saying Donald Trump has changed what he thinks in his heart. But he’s backed into a corner, and he needs to get off this crazy tariff train, and he knows it.”Trump punched back. “Few people know Stephanie Ruhle, but I do, and she doesn’t have what it takes,” he wrote on Truth Social, accusing her of lies. “We’re going to make a fortune with Tariffs, only smart people understand that, and Stephanie was never known as a ‘High IQ’ person.”If only smart people understood the US stood to make a fortune from tariffs, they might have been surprised by what happened next.Away from TV studios, some of the most senior people in the White House, including the chief of staff, Susie Wiles, reportedly started to warn the president of risks not unlike those laid out by Ruhle. “The key argument was that this was beginning to hurt Trump’s supporters – Trump’s people,” one person briefed on internal conversations told the Washington Post. “It gave Susie a key window.”On day 40, after discussions in Geneva, Bessent confirmed that US and Chinese officials would drastically reduce the tariffs they had aggressively ratcheted up just a few weeks before. With US tariffs on Chinese goods falling to 30%, Trump hailed a “total reset” in relations between Washington and Beijing.The reversal, although far from a total reset, confined the latest “liberation day” measure to history.2 April 2025, is not yet remembered as the day American industry was reborn. Much of what was announced that afternoon has already died.The page has been turned. On Friday, Trump claimed about 150 countries would soon receive letters “essentially telling” them of new US duty rates on their exports. Many learned of similar rates last month, only for the plan to change in a matter of days.A new chapter, without pomp or ceremony, is now under way. What this one will entail – or how long it lasts – is anyone’s guess. More

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      Trump announces more than $200bn of deals between US and UAE

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      Donald Trump has announced deals totaling more than $200bn between the United States and the United Arab Emirates, including a $14.5bn commitment among Boeing, GE Aerospace and Etihad Airways, as he pledged to strengthen ties between the US and the Gulf state during a multiday trip to the Middle East.The White House said on Thursday that Boeing and GE had received a commitment from Etihad Airways to invest $14.5bn to buy 28 US-made Boeing 787 and 777X aircraft powered by GE engines.“With the inclusion of the next-generation 777X in its fleet plan, the investment deepens the longstanding commercial aviation partnership between the UAE and the United States, fueling American manufacturing, driving exports,” the White House said.Antonoaldo Neves, the CEO of Etihad, said last month that the airline planned to add 20 to 22 new planes to its fleet of roughly 100 aircraft this year, as it aims to expand to more than 170 planes by 2030 and boost Abu Dhabi’s economic diversification strategy.Etihad, which is owned by Abu Dhabi’s $225bn wealth fund ADQ, has been through a multiyear restructuring and management shake-up, but has expanded under Neves.He said that 10 of the new aircraft this year would be Airbus A321LRs, which the carrier launched on Monday and will start operating in August. The remainder include six Airbus A350s and four Boeing 787s.The news follows a Wednesday announcement that Boeing had landed its largest-ever deal for wide-body airplanes, after securing an order for $96bn worth of Boeing jets from Qatar.The deal-making comes as the US president nears the ends of his multiday tour in the Middle East. Controversy has dogged the visit after the president announced earlier this week that he planned to accept a $400m luxury jumbo jet from the government of Qatar, raising numerous ethical concerns.Trump has since doubled down on his plans to accept the airplane as the new Air Force One, and eventually transfer it to his presidential library. “We’re the United States of America. I believe we should have the most impressive plane,” he said on Wednesday. More

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      ‘So many are devastated’: Trump’s federal firings and their ripple effect

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      Naomi Anderson was on leave looking after her young baby when she was told her US Department of Agriculture job helping farmers in developing countries was being cut. A former volunteer with the Peace Corps, which sends young Americans overseas to projects in emerging economies, Anderson had expected to spend her whole career in international development.“I had taken this job two years ago expecting to stay here for at least 10 years, and you know, we had started to make a community and build up our life here. In January, we had started looking at buying a home,” she says.Now Anderson is having to consider giving up the apartment in the Washington DC commuter town of Reston, Virginia, that she shares with her husband and their four-month-old baby and almost two-year-old toddler.“Financially, it’s a little bit precarious, and honestly we’re not sure what we’re going to do,” says Anderson, who is also an activist with the local branch of the AFSCME union and dabbles in selling political merchandise. “We’re thinking about moving back to Ohio, where I’m from, where my family is. You know, it’s a lot cheaper there.”Anderson is far from alone. “In our apartment complex, there’s been lots of yard sales, people selling things and moving away. It really does seem like people are just picking up and leaving, because it’s too expensive to live here without a job,” she says.Tough life-decisions like these have been forced on hundreds of thousands of former federal employees in the past couple of months, as the so-called department of government efficiency (Doge), which is headed up by Donald Trump’s favourite tech billionaire, Elon Musk, has slashed jobs in a cost-cutting spree.Data from the latest monthly Challenger jobs report suggests Doge has been responsible for 281,452 job cuts so far – almost eight times the number of workers the government let go in the entire year to April 2024.Brendan Demich is among those to be dismissed, losing his job as an engineer at the National Institute for Occupational Safety and Health (NIOSH) in Pittsburgh, Pennsylvania. All his colleagues working on mine safety, as well as those in their sister laboratory testing equipment such as respirators, are also leaving – more than 200 in total – as part of a wave of cuts initiated by Trump’s health secretary, Robert F Kennedy Jr.“So many people are devastated,” says Demich, chief steward of the local AFGE union branch. He says so many workers have been removed at once that their colleagues have barely been able to give them any kind of send-off. “It’s just unceremoniously leaving, because they had their package processed and they had to walk out the door.”Each of these cuts has its own human impact, but experts are warning of a growing risk that they combine to trigger an economic retrenchment – particularly in areas with a heavy concentration of government jobs.View image in fullscreenLiz Shuler, the president of the AFL-CIO federation of 63 trade unions, which together represent more than 15 million US workers, is trying to build a nationwide campaign to highlight the devastating impact.“The trick is connecting the dots because there’s already a national narrative around what’s happening but it’s not quite being felt yet,” Shuler says. “Elon [Musk] has his ‘department of government efficiency’. We established the ‘department of people who work for a living’. That’s kind of cheeky, but it’s kind of serious, because we’re saying we’re the ones working on the frontlines. We know what’s efficient and what’s not.“Obviously as the labour federation we’re worried about jobs and people’s livelihoods, but it’s also connected to community, and the fact the economy is being impacted in such a stark way, that ripples out across all of the industries that we represent,” she adds.These ripples are being felt especially strongly in the towns and counties around Washington DC, where job losses and government cuts crop up constantly in conversation.Kate Bates is the president of the chamber of commerce in affluent Arlington, Virginia, across the Potomac River from the US capital. She compares the current uncertainty to the pandemic, “but during Covid, the federal government was the backstop, whereas right now it’s the federal government that’s causing a lot of this,” she says.Bates reports that her members are warning of a slowdown across real estate and hospitality, as well as among government contractors, with several reporting they have already had to make job cuts.“What we hear from a lot of people is that if they could plan for the cuts, they would be in an OK position, right? But because things are changing, going back and forth, that’s causing a lot of stress,” she says.View image in fullscreenBusinesses that rely on government workers for custom are also feeling the chill. Saamir Nizam, the general manager of Arlington’s Barley Mac restaurant, which is part of a small family-owned chain, has noticed trade declining in just about every one of their usual customer groups.The nearby hotels are less occupied; bookings for “happy hour parties” by the accountants and consultants who serve the federal government are down by two-thirds; and many older local residents have been spooked by market volatility.“We can only do so much to turn things around: we can’t pull people to Washington, or convince companies to go out and do things,” Nizam says. “Barley Mac serves great food, it gives great service, but it exists, like many restaurants, on the financial margin. And if the whole year is on the margin then restaurants like ours will go under, because we’re not part of a huge national chain which has deep pockets.”View image in fullscreenJess Miller, who set up Rock Spring Real Estate Solutions a couple of years ago, has been hosting a breakfast roundtable for clients, on the top floor of an as yet unoccupied new office block in Arlington.skip past newsletter promotionafter newsletter promotionShe has noticed clients responding to the shifting climate, pulling out of deals and hoping to negotiate unusually short leases. The owners of this building are splitting the floors instead of looking for one anchor tenant.“Just how they’re making decisions is different – the cutbacks we’re seeing,” Miller says. “It hit the NGOs first and then it hit, you know, the corporations and the contractors, and it’s a lot of the senior management.”Katherine D’Zmura Friedman is a co-founder and the chief executive of Thumbprint, an Arlington-based startup offering an artificial intelligence platform for designing office layouts.View image in fullscreen“There’s no universe in which something like the last few months happens and there’s not serious consequences,” she says. “We’ve had family friends, we’ve had neighbours lose their jobs, and these are not people who would normally be subject to layoffs. These are people who are at the peak of their career, and hyper-specialised.”As far as the business effects are concerned, D’Zmura Friedman says: “Certainly on the commercial side, there’s been hesitancy about launching into things.”At her office nearby, Renata Briggman, a residential estate agent, plays down the idea that the housing market in Arlington could be hit, pointing to the many local employers broadly unaffected by federal spending – such as Amazon, which is headquartered here.However, she does acknowledge signs of change. “It’s definitely shifting. We’re not seeing any fire sales, it’s too soon for that. It’s very, very slow, and we’re just going to start seeing it, it’s just on the cusp … end of June, we’ll have a better idea.”View image in fullscreenSuch challenges are being replicated across the region. Jimmy Olevson, the president and chief executive of National Capital Bank, which serves Washington DC and the surrounding areas, says the bank is not yet seeing signs of financial distress, such as rising arrears, but the mood is “uneasy”. Many customers who have had a recent mortgage application approved seem to have put house-hunting on hold.Some experts fear this widespread mood of unease bodes badly for the coming months. Analysis by Dr João Ferreira, an expert in regional economics at the University of Virginia, suggests more than 320,000 people in the state are employed directly by the federal government – and another 441,000 jobs depend on taxpayer-funded contracts, of the kind that are being cut.In some sectors – construction, for example – the same firms fretting about whether their contract will be cut are also contending with the rising price of materials, as a result of tariffs. Although some of the border taxes have been paused or reduced, those restrictions that remain mean costs are still far higher than at the start of the year.In theory, the Trump administration could lift the gloom by drawing a line under budget cuts as Musk heads back to his day job running the electric carmaker Tesla. But key members of the cabinet, including Kennedy and the defence secretary, Pete Hegseth, have boasted of how much they plan to slash from their budgets – and White House trade policy continues to see-saw.Ferreira says: “I think, as an economist, I’ve never seen so many things happening at the same time. But they all lead to the same direction, and that’s a recession.”He says Virginia has often been cushioned from economic downturns in the past by federal funding, but in this cycle he expects the state to lead the way. “We definitely might see that Virginia, and other regions like Maryland, will be the frontrunners in this recession period,” Ferreira says.Meanwhile, for many of the affected individuals, the future looks highly uncertain – despite the US treasury secretary Scott Bessent’s suggestion they should go work in manufacturing. “For us on our team, we work in international development,” says Anderson. “We have a background in humanitarian work, and the Trump administration is trying to cut international foreign aid. So where do you go from there?” 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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      Pharmaceutical stocks slide as Trump vows to cut US prescription drug prices ‘by 30-80%’

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      Donald Trump has promised to use his executive powers to cut the price of prescription drugs in the US in an attempt to bring them more in line with other countries, triggering a sharp fall in drugmakers’ share prices.The US president has said he will sign an order on Monday that will reduce prescription drug and pharmaceutical prices “almost immediately” by “30% to 80%”.Writing on Truth Social, his social media platform, Trump said on Sunday it was “difficult to explain and very embarrassing” why drug prices in the US were higher compared with many other countries.“The Pharmaceutical/Drug Companies would say, for years, that it was Research and Development Costs, and that all of these costs were, and would be, for no reason whatsoever, borne by the ‘suckers’ of America, ALONE,” he wrote.He said he would introduce a “most favoured nation” policy whereby the US pays “the same price as the nation that pays the lowest price anywhere in the World”.The comments triggered a sell-off in pharmaceutical stocks on Monday amid worries profits could be hit if firms have to cut prices in the US.In London, shares in the pharmaceutical companies AstraZeneca and GSK fell in early trading by as much as 5% and 3.2% respectively. Shares in Denmark’s Novo Nordisk which makes the weight loss and anti-diabetes drugs Wegovy and Ozempic, dropped by 7.5% in Copenhagen, while the Swiss group Roche Holdings fell by 3.6%.In South Korea, shares in SK Biopharmaceuticals and Samsung Biologics fell by 2.1% and 4.7% respectively. In Hong Kong, the cancer drug maker BeiGene dropped by nearly 9% and Innovent Biologics fell by 5.7%.In Japan, the pharmaceutical sector index fell by more than 4%, while Indian pharma stocks also dropped.Alex Schriver, a senior vice-president at Pharmaceutical Research and Manufacturers of America, said: “Government price-setting in any form is bad for American patients. At a time when we are facing growing competition from China, policymakers should focus on fixing the flaws in the US system, not importing failed policies from abroad.”European drugmakers have been urging the EU to allow higher medicine prices, warning that without stronger investment incentives, Europe would fall further behind the US.Threats of US tariffs on pharmaceutical products have prompted a number of firms to announce manufacturing investments in the country, including Switzerland’s Novartis and Roche, and the US firms Johnson & Johnson and Gilead Sciences. Trump has hinted at a reprieve for companies, saying they would be given “a lot of time” to shift operations to the US before facing levies.skip past newsletter promotionafter newsletter promotionTrump targeted high drug costs during his first administration, which aimed to cap prices for certain medicines under Medicare. However, the move was struck down in federal court after a challenge from drug companies.The American government already negotiates prices for some of the most expensive medicines used in Medicare, a federal health insurance programme, under Joe Biden’s Inflation Reduction Act. Medicare covers 66 million Americans, mostly aged 65 or over.Trump did not specify on Sunday whether his executive order would apply to Medicare, Medicaid or other government health programmes.He suggested that industry lobbyists had been unsuccessful in the White House despite the fact that big pharmaceutical companies and industry bodies had made donations to his inauguration.“Campaign Contributions can do wonders, but not with me, and not with the Republican party. We are going to do the right thing, something that the Democrats have fought for many years,” he said. More

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      White House claims China trade deal reached after ‘productive’ Geneva talks

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      The White House has announced that a trade deal with China has been struck after two days of talks in Geneva.The announcement on Sunday came after the US treasury secretary, Scott Bessent, told reporters that there had been “substantial progress” in talks between his team and that of the Chinese vice-premier, He Lifeng, in Geneva on defusing the trade war between the world’s two largest economies sparked by Donald Trump’s 145% tariffs.At a news conference later on Sunday, He, the top Chinese trade official, called the talks “candid” and said substantive progress had been made to reach an “important consensus”, according to China’s state-run media. The two sides will issue a joint statement agreed during the talks, the vice-premier said.In televised remarks that were posted on social media by the White House, Bessent said he would give more details on Monday, “but I can tell you that the talks were productive”.“I’m happy to report that we’ve made substantial progress between the United States and China in the very important trade talks,” Bessent told reporters.The US trade representative, Jamieson Greer, who spoke alongside Bessent, suggested more strongly that a deal had been reached.“It’s important to understand how quickly we were able to come to agreement, which reflects that perhaps the differences were not so large as maybe thought,” Greer said.“Just remember why we’re here in the first place,” he added. “The United States has a massive $1.2tn trade deficit, so the president declared a national emergency and imposed tariffs, and we’re confident that the deal we struck with our Chinese partners will help us to resolve, work toward resolving that national emergency.”Bessent said he had informed Trump of the progress of the talks.The meeting was the first face-to-face interaction between Bessent, Greer and He since the world’s two largest economies imposed tariffs well above 100% on each other’s goods.Although Bessent has said the bilateral tariffs were too high and needed to come down in a de-escalation move, he did not offer any details of reductions agreed and took no questions from reporters.On Saturday night, Trump wrote on his social media platform that the two sides were working on “a total reset … in a friendly, but constructive, manner.”“Many things discussed, much agreed to,” Trump posted. “We want to see, for the good of both China and the U.S., an opening up of China to American business. GREAT PROGRESS MADE!!!,” Trump added. Trump’s rhetoric, that China needs to be “opened” to US business seemed to ignore a half century of trade between the two nations since one of his political heroes, Richard Nixon, visited China in 1972.The US commerce secretary, Howard Lutnick, confirmed to CNN that the US will continue to keep “a 10% baseline tariff to be in place for the foreseeable future” even on imports from nations the US strikes new trade deals with.On Sunday, Kevin Hassett, the director of the National Economic Council, said: “What’s going to happen in all likelihood is that relationships are going to be rebooted. It looks like the Chinese are very very eager to play ball and renormalise things … they really want to rebuild a relationship that’s great for both of us.”Last week, Trump and the UK prime minister, Keir Starmer, announced a limited bilateral trade deal.Hassett said the UK agreement provided a “really exciting blueprint” and that he had been briefed on 24 deals with other countries that are in the works. “They all look a little bit like the UK deal but each one is bespoke,” he said.Meanwhile, Lutnick dismissed reports of dock workers and truckers losing their jobs as a result of the tariffs.“This is just a China problem right now,” Lutnick said. “The rest of the world is 10% [tariffs]. So don’t overdo it.”“Prices are going to stay stable once this policy is done,” Lutnick added.Reuters contributed reporting More