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    Trump delays key piece of China tariff plan amid threats to other countries

    Donald Trump halted a key part of his tariff attack on China on Friday, as he threatened to impose new US duties on goods from many more countries next week.Plans to ensure shipments from China to the US worth less than $800 still face tariffs – removing the longstanding duty-free status of low-cast packages – have been delayed to give more time to federal agencies to prepare for the change.At the White House on Friday, however, the president said he would announce new reciprocal tariffs on more countries next week. He did not give any details specifying what the tariffs will be and which countries would be affected.“I’ll be announcing that next week reciprocal trade, so that we’re treated evenly with other countries. We don’t want any more, any less,” Trump told reporters during a bilateral meeting with Japanese prime minister Shigeru Ishiba.On Tuesday, the US Postal Service briefly halted all incoming packages from China and Hong Kong after Trump ended a de minimis provision that allowed low-value packages from China to enter the US duty-free.The provision allowed Chinese e-commerce companies such as Shein and Temu to ship items into the US without having to pay tariffs Trump had enacted on China in 2018. After a 12-hour period, the US Postal Service resumed taking all packages on Wednesday.An executive order, signed by Trump, said he would keep the provision until “adequate systems are in place to fully and expediently process and collect tariff revenue”.The president had removed the duty-free provision as his overall tariff strategy against China, what he says is in response to illegal drugs that are coming in from the country. Trump placed a 10% tariff on all Chinese imports, which went into effect this week.skip past newsletter promotionafter newsletter promotionAny new tariffs will add to the confusion and chaos over global trade Trump has created since he entered office. Trump had originally planned to place 25% tariffs against Mexico and Canada on 1 February but ultimately halted both tariffs after negotiations with the country leaders. Those tariffs are now expected to go into effect 1 March.Reuters contributed reporting More

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    What will Trump 2.0 mean for the global world order? | Stephen Wertheim

    Many assumed that Donald Trump’s second term as president of the United States would turn out like his first. But this time looks to be different. In his opening weeks, the US president has taken a flurry of actions he never attempted before, wielding sweeping tariffs against the US’s neighbors, upending portions of the federal workforce, and attempting to change constitutionally enshrined citizenship laws through executive order.The early signs on foreign policy are no exception. In his inaugural address, Trump said next to nothing about the issues that have dominated US foreign policy for decades – matters of war and peace in Asia, Europe and the Middle East. Instead, he spoke of expanding US territory in the western hemisphere (and going to Mars), harking back explicitly to the 19th-century tradition of manifest destiny. Astoundingly, Trump mentioned China solely for the purpose of accusing it, inaccurately, of operating the Panama canal. When he turned beyond the Americas, Trump’s most telling line signaled restraint: “We will measure our success not only by the battles we win but also by the wars that we end – and perhaps most importantly, the wars we never get into.”Then Marco Rubio, the secretary of state, made even more pointed and intriguing remarks. Rubio ran for president in 2016 vowing to usher in a “new American century”, the mantra of post-cold war neoconservatives. But days ago, sitting for his first lengthy interview as America’s chief diplomat, he emphasized the need for a foreign policy grounded in the US national interest and said:“So it’s not normal for the world to simply have a unipolar power. That was not – that was an anomaly. It was a product of the end of the cold war, but eventually you were going to reach back to a point where you had a multipolar world, multi-great powers in different parts of the planet. We face that now with China and to some extent Russia, and then you have rogue states like Iran and North Korea you have to deal with.”For a US secretary of state to announce that the world is now “multipolar”, or is inevitably heading in that direction, is historically significant. Hillary Clinton also used the m-word in 2009 at the start of her tenure in the same role, but she invoked it less than affirmatively: Clinton professed a desire to move “away from a multipolar world and toward a multipartner world”. Rubio, by contrast, meant that a world of multiple poles or powers is to be accepted, not resisted. He also implied that US foreign policy had long been off course, having taken unrivaled American dominance to be a normal or necessary condition when in fact it was destined to disappear. At the end of the cold war, Rubio explained: “We were the only power in the world, and so we assumed this responsibility of sort of becoming the global government in many cases, trying to solve every problem.”The message: no longer.Still, no longer could lead down any number of roads. Read against the Trump administration’s Americas-centric start, Rubio’s comments have provoked dread – or excitement, depending on the perspective – that the United States will radically reduce its political-military role beyond the western hemisphere even as it asserts its power within the Americas.For traditional figures in Washington, the fear is that Trump 2.0 will give China and Russia a free hand to command “spheres of influence” in their regions, so long as they permit the United States to police its own sphere. For advocates of US restraint overseas, the hope is that Trump will deliver on his promises to end the wars in Ukraine and the Middle East, shift more responsibility for defending Europe on to the shoulders of European allies, and seek to find a stable if competitive mode of coexistence with China. If Rubio thinks the world is now multipolar, presumably it follows that the United States should abandon the approach it pursued in the bygone age of unipolarity – a grand strategy of “primacy” or “hegemony”, as scholars call it.Perhaps. Rubio, though, was not nearly so conclusive. Throughout the interview, he referred to the governments in Moscow and Beijing in adversarial terms, which hardly suggest a willingness to grant them spheres of influence. Nor is there a straight line from acknowledging the loss of unipolarity to abandoning primacy. Even in a crowded, competitive landscape, the United States could try to remain militarily stronger than every rival, retain all its globe-spanning defense commitments, and maintain a large troop presence in Asia, Europe and the Middle East simultaneously. Those are the elements of primacy. Rubio did not renounce any of them. The United States, in short, could still pursue primacy without enjoying unipolarity.Indeed, in associating multipolarity with the existence of “multi-great powers”, Rubio may have meant to affirm the outlook of the first Trump administration, which adopted “great power competition” as a watchword. For Trump 1.0, as for the Biden administration that followed, the rise of China and the assertion of Russia did not compel Washington to pare back its military commitments and presence. Quite the contrary. Over the two presidencies, Nato enlarged to four new countries, the US military presence in the Middle East (excluding Afghanistan) remained stable, and the United States deepened security cooperation with Ukraine, Taiwan and others.So far, the appearance of formidable rivals has done less to discipline US ambitions than to furnish US global primacy with a new rationale – to stand up to the aggressive and revisionist activities of America’s adversaries. As Rubio put it: “China wants to be the most powerful country in the world and they want to do so at our expense, and that’s not in our national interest, and we’re going to address it.”But Rubio did signal more restraint than a continuation of business as usual. Just after his remarks on multipolarity, he noted that the second world war ended 80 years ago and that “if you look at the scale and scope of destruction and loss of life that occurred, it would be far worse if we had a global conflict now.” Since the end of the cold war, US leaders have invoked the second world war almost exclusively to exhort the country to lead the world. Rubio, by contrast, did so to caution against the dangers of overreach. He continued:“You have multiple countries now who have the capability to end life on Earth. And so we need to really work hard to avoid armed conflict as much as possible, but never at the expense of our national interest. So that’s the tricky balance.”Quite so. In recent years, the risk of conflict between major powers has grown acute. The war in Ukraine – in which one major power is fighting directly on its borders and the other heavily arming its opponent – had no parallel during the cold war. A US-China military conflict over Taiwan would be ruinous. In a country unused to paying noticeable costs for foreign policy choices, and a world that no longer remembers the last general war, Rubio delivered a salutary message.The policy test, however, is still to come. If the new administration is serious about avoiding catastrophic wars, without exposing core US interests to great power predation, it will make a determined, sustained diplomatic effort to end the war in Ukraine and minimize the risks of escalation if initial talks do not succeed. It will explore politically difficult ways to reach a modus vivendi with China, including by offering assurances that the United States does not seek to keep Taiwan permanently separate from the mainland, a red line for Beijing.The new administration’s opening moves suggest some intention to find a more sustainable and less confrontational approach toward the world’s major powers. But if unipolarity is dead, the lure of primacy remains very much alive.

    Stephen Wertheim is a senior fellow in the American statecraft program at the Carnegie Endowment for International Peace and a visiting lecturer at Yale Law School and Catholic University More

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    The forgotten faces of Christmas in China | Letter

    Reading “made in China” on his toys for the first time, my young Chinese nephew asked me innocently whether Santa was Chinese. Oddly, like Santa’s elves, toy assembly workers in China remain remote and faceless to most of us in the west. In Britain, most Asian migrants work backstage, too, kept in kitchens or workshops, taking the first and last train, earning low wages and hidden from our eyes. In many countries this Christmas, instead of being acknowledged for alleviating our cost of living crisis, those foreign workers will be vilified for stealing our jobs and threatened with tariffs whose consequences economists are still not certain about.It is always easier to blame people who remain invisible and voiceless. Although our world has never been so interconnected, and hence our nations so reliant on each other’s labour, Chinese society remains poorly understood. In the west, Chinese people remain enigmatic, the ever-silent and under-represented minority. When scrutinised, it is often with a political lens as well, maybe showing some cognitive bias.The question today should be how much value the free movement of products and people has brought to our nations and how to ensure that it keeps doing so in the future. As evidenced by world history, curiosity and interest towards foreign societies has often been an engine of progress. Christmas is a time to reach out and be thankful to one another: it is hoped that this spirit will continue to animate our politicians and societies in this coming year.Hugo WongAuthor of America’s Lost Chinese; London More

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    China Pledges More Stimulus to Shore Up Flagging Economy

    At a meeting to set the party’s economic policy agenda, China’s leadership said it would borrow more and cut interest rates in a bid to bolster growth.China’s top leaders on Thursday pledged more stimulus measures to shore up the country’s economy, building on steps they have taken in recent months to bolster growth.At an annual gathering of the Chinese Communist Party and the cabinet, led by the country’s top leader, Xi Jinping, officials agreed that the government should allow a bigger budget deficit, borrow more and cut interest rates, the state television broadcaster said on Thursday.The statements suggest a willingness by Beijing to take more aggressive steps to increase spending, part of a shift that began in September to turn around years of weak consumer demand, lackluster growth and declining prices.China “will need to maintain economic growth and maintain overall stability of employment and prices next year,” the state broadcaster said at the conclusion of the two-day Central Economic Work Conference, which sets the economic agenda for the upcoming year.The Chinese government typically uses the conference to signal priorities that could translate into policy action in the next year, and to agree on budget details that will be announced at the spring legislative session.Earlier this week, the ruling Politburo gave a rare public acknowledgment that Beijing needed to take a stronger approach on the economy, when it indicated it would be more willing to lower interest rates. It was the first time that China’s leaders had eased their stance on monetary policy since the aftermath of the global financial crisis 14 years ago.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    The Guardian view on the EU-Mercosur trade deal: another farmer flashpoint approaches | Letters

    Anticipating the strong protectionist winds that will blow from Donald Trump’s White House, the president of the European Commission, Ursula von der Leyen, has been responding by making her own economic weather. Last week, Ms von der Leyen flew to Montevideo, 5,000 miles south of Washington DC, to controversially conclude negotiations in one of the biggest free trade agreements in history. Twenty-five years in the making, the Mercosur trade deal opens up trade between the EU and a Latin American bloc of partners comprising Argentina, Brazil, Paraguay and Uruguay.In theory, the agreement promises a more open market of 700 million people for products ranging from Argentine beef to German cars. For European manufacturers, it would eliminate tariffs on a majority of goods. As Mr Trump threatens to impose heavy tariffs on Chinese and European exports, here was evidence, asserted Ms von der Leyen, “that openness and cooperation are the true engines of progress and prosperity”.This sunny analysis does not, however, tell the whole story. From an economic perspective, the Mercosur deal makes sense for Europe, offering an alternative market in the event of US tariffs and amid the continuing Chinese slowdown. It also deepens European connections with the global south, at a time when Beijing is doing the same in systematic fashion. But the political realities are treacherous: opposing Mercosur is a common cause celebre among European farmers, who fear being undercut by Latin American producers who are not subject to the same environmental standards.At the end of a year in which farmers’ protests have made headlines across the continent, and far-right parties have exploited rural resentment to attack the EU’s green transition, this is territory to be navigated with extreme care. The deal has yet to be ratified, and EU member states are split. Germany, desperate to shore up its export industry, is strongly in favour. France, whose farmers famously carry immense political clout, is implacably opposed. Serious reservations have been expressed by the Netherlands, Poland, Austria, Italy and Ireland.Less than a month after officially beginning her second term in office, Ms von der Leyen is taking a risk by pushing ahead at pace when such divisions exist. Approval of the trade part of the overall deal may be subject to a qualified majority vote, meaning that France would not be able to exercise its veto. That would be grist to Marine Le Pen’s mill, given that, in one recent poll, almost two-thirds of French citizens said they no longer had confidence in the EU. Meanwhile, the prospect of a disunited European front – with France and Germany at loggerheads – as Mr Trump enters the White House, is not an uplifting one.In the quarter of a century since the Mercosur negotiations began, the negative impacts of globalisation on particular European regions and economic sectors have driven a backlash that has benefited the far right. Trade deals are about politics as well as economics. To avoid the fallout of this deal overshadowing the economic gains, Brussels should make it a priority that losers from it are adequately compensated. Bypassing a necessary battle for hearts and minds, as the EU confronts new geopolitical challenges without and the rise of Eurosceptic nationalism within, is not a viable option.

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    Commerce Dept. Is on the Front Lines of China Policy

    The department has confronted the challenge of China by restricting key exports, a policy that is likely to continue in the Trump administration.The Commerce Department has traditionally focused on promoting the interests of American business and increasing U.S. exports abroad. But in recent years, it has taken on a national security role, working to defend the country by restricting exports of America’s most powerful computer chips.While the Trump administration is likely to remake much of the Biden administration’s economic policy, with a renewed focus on broad tariffs, it is unlikely to roll back the Commerce Department’s evolution.“I’m truthfully not terribly worried that the Trump administration will undo all the great work we’ve done,” Gina Raimondo, the commerce secretary, said in an interview. “Number one, it’s at its core national security, which I hope we can all agree on. But two, it is the direction that they were going in.”It was the first Trump administration that took the initial steps toward the Commerce Department’s evolution, Ms. Raimondo noted, with its decision to put the Chinese telecommunications company Huawei on the “entity list.” Companies on the list are deemed a national security concern, and transfers of technology to them are restricted.Ms. Raimondo came into the commerce job focused on confronting the challenge of China by building upon the Trump administration’s actions.She has overseen a significant expansion of U.S. economic and technology restrictions against China. The Biden administration transformed the tough but sometimes erratic actions the Trump administration had taken toward Beijing into more sweeping and systematic limits on shipping advanced technology to China.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    A Space Lawyer on the Global Quest to Conquer the Moon

    Lunar exploration in the 21st century offers a unique opportunity to unite us.This personal reflection is part of a series called Turning Points, in which writers explore what critical moments from this year might mean for the year ahead. You can read more by visiting the Turning Points series page.Turning Point: In February, Intuitive Machines became the first private, nongovernmental entity to achieve a soft landing on the moon.I believe we really can achieve peace on Earth — and even beyond our planet. Perhaps that’s naïve, but I was lucky enough to be born into a universe of rich diversity that continues to inspire me.My mother is from a town near Shanghai and my father is of Polish descent. They were married, incidentally, on the same day the Soviet Union’s Luna-2 spacecraft crash-landed on the moon, marking humanity’s first impact on another celestial body. My father joined the United States Foreign Service soon after, and I spent my childhood moving across Africa, Eastern Europe and Asia, attending international schools and forging bonds with classmates from all parts of the planet. Though culturally tied to different nations, we were embraced by the commonality of our life on this beautiful Earth. It is a global bond that too many people fail to recognize.Today, as a space lawyer, I navigate the legal complexities of humanity’s journey beyond Earth, working through challenges with orbital debris, private property ownership in space, space resource utilization and more. During this pivotal moment in the history of space exploration, as humanity transitions from Earth to a multiplanetary existence, I am dedicated to ensuring that space remains a domain of peace and accessibility. It starts with our moon.Though several missions have targeted our natural satellite in this century, the pace of lunar exploration has significantly accelerated in the past decade, especially after India’s Chandrayaan-1 spacecraft confirmed the presence of water on the lunar surface in 2008. In the years that followed, China, Russia, India and Japan have all landed or attempted to land on the moon. And in 2024, a new milestone was achieved: Intuitive Machines became the first private, nongovernmental entity to achieve a soft landing on the moon, the closest approach to the lunar south pole by humans to date. Later in the year, we witnessed China’s sixth robotic mission and the first-ever return of samples from the far side of the moon. Multiple future missions, including crewed ones by both China and the United States, are planned within this decade.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    If Trump’s tariffs start a trade war, it would be an economic disaster | Mark Weisbrot

    “To me, the most beautiful word in the dictionary is tariff, and it’s my favorite word,” said Donald Trump last month. Pundits, politicians and financial markets are trying to figure out why, since he announced a week ago that he would impose tariffs on the United States’s three biggest trading partners: 25% for Mexico and Canada, and 10% for China.One theory is that tariffs can be a beautiful distraction. Trump, more than any previous US president, has fed on distractions for years, both to campaign and to govern. He can move seamlessly from one distraction to the next, like a magician preparing for the opportune moment to pull a coin from where it appears to have been hidden behind your ear.Although he still has seven weeks before he takes office, he could use a distraction that can start sooner. He has run into problems with cabinet and other appointments that require Senate confirmation. Of course he could easily find people who would do his bidding and be acceptable to a Senate with a Republican majority. But that would defeat the main purpose of nominating people who seem indefensible: to force Republican senators to display the abject subservience that Trump needs to be public, in order to ensure his unwavering dominance within his party.This is no small part of his governing strategy; it involves a big takeaway from the failures of his first term, from his point of view. The lesson is: loyalty to Trump first. Violators will be banished. And with small margins in the Senate and the House, things could begin to unravel if this core imperative goes unenforced.But the days before Trump actually takes office could also be the best time for him to use the threat of tariffs to begin bullying foreign governments for things that might benefit his allies, donors or himself. Other governments besides the three that he named are trying to figure out what they can offer Trump to avoid the economic disruption of tariffs. Christine Lagarde, the head of the European Central Bank, who does not see Trump as a friend, has urged the EU to negotiate with him, rather than adopt a retaliatory, eg tariff, response.Trump’s two offered pretexts for the tariff threat – migration and drugs, in this case fentanyl – are not credible. About 18% of the undocumented people encountered by border patrol over the past year have been from Venezuela and Cuba, two countries that have been devastated economically by sanctions imposed by the US government. If reducing immigration were really Trump’s concern, he would not have deployed sanctions that have driven millions of people from their homes to the US border; and he could end these sanctions in January by himself.Broad economic sanctions are a form of economic violence which targets civilians in order to achieve political ends, including regime change. US congressman Jim McGovern, a Massachusetts Democrat, made this clear in a letter that he wrote to Joe Biden asking for the sanctions on Venezuela to be dropped. The Trump sanctions in Venezuela in 2017 killed tens of thousands of civilians during the first year, and many more in the years that followed, including under Biden.As for fentanyl, about 75,000 people died from overdoses of this drug in 2023. But it’s difficult to see how Trump’s tariffs could help solve this problem. It’s a glaring example of how more than four decades of a failed “war on drugs”, based on criminalization of use and supply-side intervention, have made things worse. In this case the drug war has led to an innovation – fentanyl – that is vastly more powerful than heroin, much cheaper to produce, more addictive and easier to transport, distribute and produce.There is general agreement in the economic research on the effects of Trump’s trade and tariff wars in his first term as president, in which he placed tariffs on about $380bn of US imports. The overall impact on living standards for US workers and most Americans is found to be negative, with the cost of the tariffs being absorbed by US consumers. Employment overall did not increase, and may have fallen due to the negative impact of retaliatory tariffs.The economic research looking at the expected impacts of tariffs that Trump has talked about going forward also finds the impact on the US economy to be negative. And there is potential for much more damage if other countries respond with more retaliatory tariffs than they did in 2018-2020.Meanwhile, the productivity of Trump’s tariff offensive in generating distractions remains high. On Sunday he took a shot at the so-called Brics countries – Brazil, Russia, India, China and other economic powers: “We require a commitment from these countries,” Trump wrote on Truth Social, “that they will neither create a new Brics currency nor back any other currency to replace the mighty US dollar or they will face 100% tariffs and should expect to say goodbye to selling into the wonderful US economy.”None of these things will happen while Trump is in office. Nor will threats like this deter the majority of the world, when it is ready, from replacing a system of global governance that is overwhelmingly run by one country with help from the richest people in other rich countries. Our current system is one in which the “exorbitant privilege” that the dollar-based financial system bestows upon the US government gives the president the power to destroy whole economies with the stroke of a pen.But this is a longer story; for Trump it’s just another threat and another distraction in the post-truth world that he, as much as anyone, helped create. But he will need more than distractions to take this country further down the road toward de-democratization, which is what brought to him and his party the power that they now have.

    Mark Weisbrot is co-director of the Center for Economic and Policy Research. He is the author of Failed: What the “Experts” Got Wrong About the Global Economy More