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      Europe Warily Watches U.S.-China Trade War

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      Europe was not directly targeted in the wave of U.S. tariffs that took effect on Tuesday, but the effects are being felt here.Keyu Jin, a professor at the London School of Economics, said that tit-for-tat tariffs would not necessarily lead to less global trade, but a “fragmentation and regionalism” that forges new blocs aiming to be “nonaligned” in the intensifying trade war between the United States, its neighbors and China.She was speaking on a panel Tuesday in Barcelona at one of the world’s biggest tech trade shows, which runs this week. The annual event, known as Mobile World Congress, attracts more than 100,000 people for product pitches, fund-raising appeals and debates about the future of technology.The fresh U.S. tariffs on Canada, China and Mexico — the three largest U.S. trading partners and crucial cogs in many supply chains — were a common topic of conversation around the sprawling expo center. European companies are heavily represented at the event, and some executives tried to frame the rising trade tensions as an opportunity for Europe, whose sizable population and economy has often been held back by slow growth and a lack of competitiveness.The recent mobilization of European leaders to step up military support of Ukraine was cited as an example of deeper European integration that in the past has tended to fizzle out. But the suspension of U.S. aid and the urgency of Ukraine’s plight — Prime Minister Keir Starmer of Britain recently described it as “a crossroads in history” — could spur greater continental cooperation, executives said.Investors have piled into stocks of European defense companies that stand to benefit from stepped-up military spending. And European markets, in general, have outperformed U.S. stocks in recent weeks, even after slipping on Tuesday after the U.S. tariffs went into effect and some targeted countries retaliated.Some of the tech execs in Barcelona say this is not a coincidence: Companies with Europe-focused operations and supply chains may be seen by global investors as a sort of geopolitical hedge against the tariffs and trade tensions arising from the United States. Take, for example, the stock market index tracking European telecoms, long seen as a somewhat sleepy backwater, which is up about 12 percent this year alone.But this thesis will be tested soon, when President Trump plans to widen the scope of tariffs to cover all U.S. imports of steel, aluminum, copper and cars, as well as “reciprocal” tariffs against countries to address what he calls “unfair” relationships and to compel companies to move manufacturing to the United States. More

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      Trump’s Tariffs Hit Stock Markets

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      Global leaders are retaliating and investors have sold off stocks in Asia and Europe.Nowhere to hide as a new wave of U.S. tariffs sinks global stock markets.Franck Robichon/EPA, via ShutterstockNot just tough talk President Trump wasn’t bluffing, after all.Global markets plunged on Tuesday after U.S. tariffs went into effect on roughly $1.5 trillion worth of imports from Canada, Mexico and China, with another, and even broader, wave set to kick in as soon as next week.China and Canada have already responded, with Beijing targeting the American heartland with sweeping levies on imported food and halting log and soybean shipments from select U.S. companies. Mexico is expected to retaliate, too.The escalation has global business leaders increasingly worried about what will come next, as economists warn that consumers and companies will soon see higher prices. Warren Buffett offered a reminder of what the global economy is facing. “Tariffs,” the billionaire investor said this week, “are an act of war, to some degree.”Here’s the latest:Stocks in much of Asia and Europe fell on Tuesday, after the S&P 500 yesterday suffered its worst one-day decline this year. U.S. stock futures were down slightly on Tuesday.Hit especially hard on Tuesday were the shares of European automakers, including Volkswagen, BMW, and Daimler Truck. Levies could slam the sector, which is highly dependent on a complex cross-border supply chain.The CBOE volatility index, Wall Street’s so-called fear gauge popularly known as the VIX, jumped, posting its biggest one-day spike this year, according to Deutsche Bank.The sell-off also extended to cryptocurrencies (more on that below), and, in a new twist, the dollar.If global investors weren’t spooked before, they seem to be now. “The market finally took the Trump administration at its word, and the realization that the tariff talk wasn’t just a negotiating tactic is starting to sink in,” Chris Zaccarelli, an investment strategist for Northlight Asset Management, said in a research note yesterday evening.How long will the trade battle last? Analysts see reason for cautious optimism — at least on China. “We view Beijing’s responses as still strategic and restrained,” Xiangrong Yu, Citigroup’s chief China economist, said in a research note on Tuesday. He said a trade deal was still “plausible.”The Shanghai composite index closed slightly higher on Tuesday.Market watchers warn of deep repercussions should the trade war drag on. Trump seems to be digging in, telling reporters yesterday that there is “no room left for Mexico or for Canada.” A protracted fight could dent global growth and accelerate inflation, all of which could “hamstring the Fed,” Mark Haefele, the chief investment officer at UBS Global Wealth Management, told Bloomberg Television on Tuesday.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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      in US Politics

      China and Canada retaliate after Trump trade tariffs come into effect

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      China and Canada unveiled retaliatory measures against the US after Donald Trump imposed his sweeping tariffs plan at midnight US time, despite warnings it could spark an escalating trade war.US tariffs have come into force of 25% against goods from Canada and Mexico, the US’s two biggest trading partners, and 20% tariffs against China – doubling the levy on China from last month.The duties will affect more than $918bn-worth (£722bn) of US imports from Canada and Mexico.China on Tuesday said it would impose fresh tariffs on a range of agricultural imports from the US next week. Its finance ministry said additional 15% tariffs would be imposed on chicken, wheat, corn and cotton, with further 10% tariffs on sorghum, soya beans, pork, beef, aquatic products, fruits, vegetables and dairy products.The Canadian prime minister, Justin Trudeau, said Ottawa would respond with immediate 25% tariffs on C$30bn-worth ($20.7bn) of US imports. He said previously that Canada would target US beer, wine, bourbon, home appliances and Florida orange juice.Tariffs will be placed on another C$125bn ($86.2bn) of US goods if Trump’s tariffs were still in place in 21 days.“Tariffs will disrupt an incredibly successful trading relationship,” Trudeau said, adding that they would violate the US-Mexico-Canada free trade agreement signed by Trump during his first term.Mexico’s president, Claudia Sheinbaum, was expected to announce her response on Tuesday morning, the country’s economy ministry said.Asian markets were down – after sharp falls in US markets on Monday – as Japan’s Nikkei fell 1.6%, Taiwan’s benchmark TWII index was off 0.5% and Hong Kong’s Hang Seng was down 0.$%.The Canadian dollar and the Mexican peso fell to their lowest levels in a month on Tuesday.In Europe, the FTSE 100 dropped by 57 points, or 0.65%, at the start of trading to 8,813 points, a day after rising more than 8,900 points for the first time. France’s CAC 40 fell 0.9% and Spain’s Ibex was down 0.8%.Trump and his allies claim that higher tariffs on US imports from across the world will help make America great again by enabling it to obtain political and economic concessions from allies and rivals on the global stage.Businesses, inside the US and worldwide, have warned of widespread disruption if the Trump administration pushes ahead with this strategy.Since winning November’s presidential election, the president has focused on China, Canada and Mexico, threatening the three markets with steep duties on their exports unless they reduced the “unacceptable” levels of illegal drugs crossing into the US.skip past newsletter promotionafter newsletter promotionWhile he slapped a 10% tariff on China last month, Trump has repeatedly delayed the imposition of tariffs on Canada and Mexico. The president has pledged to bring down prices in the US, but economists have warned that consumers in the country could be aversely affected by his trade plans.A 25% tariff on Canada and Mexico and a 10% levy on China would amount to “the largest tax increase in at least a generation”, according to the Peterson Institute for International Economics, a thinktank, which estimated such a move would cost the typical US household more than $1,200 each year.Trump has vowed to go further, threatening to introduce “reciprocal” tariffs on countries that have their own duties on goods made in the US. He has said these will come into effect as soon as next month.China’s finance ministry said in a statement: “The US’s unilateral tariff increase damages the multilateral trading system, increases the burden on US companies and consumers, and undermines the foundation of economic and trade cooperation between China and the US.”The ministry said products shipped from the US to China that departed before 10 March and arrived before 12 April would not be subject to the tariffs.Trump has said the tariffs on China are because the government has failed to stop illicit fentanyl entering the US, which Beijing says is a “pretext” to threaten China.“China opposes this move and will do what is necessary to firmly safeguard its legitimate interests,” a foreign ministry spokesperson, Lin Jian, said.Chris Weston, an analyst at the brokerage Pepperstone, said: “Market anxiety levels have been dialled up, and we see traders having to react aggressively and dynamically to the deluge of headlines and social posts confirming that tariffs on China, Mexico and Canada are to be implemented in full and as threatened.” More

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      In Speech to Congress, Trump Is Expected to Boast About DOGE Cuts and Ukraine

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      President Trump is expected to boast about his assault on the federal bureaucracy and his efforts to upend global relationships during an address to a joint session of Congress on Tuesday, even as his administration faces lawsuits over his domestic agenda and Europe rebukes him over his treatment of Ukraine.Addressing his largest television audience since his return to power, Mr. Trump is expected to speak about the speed with which he has pushed through reductions in border crossings, cuts to government through the Department of Government Efficiency, known as DOGE, and a slew of executive orders. He is also expected to emphasize the need to pass his legislative agenda, which includes some $4 trillion in tax cuts.“He’s going to talk about the great things he’s done: The border’s secure, the waste he’s finding with DOGE,” said Representative Jim Jordan, Republican of Ohio and the chairman of the Judiciary Committee, who speaks frequently with Mr. Trump. “He’s going to keep laying out his vision, where he wants the country to go.”For Mr. Trump, it will be a remarkable return to a chamber — and a prime-time, nationwide audience — he last addressed five years ago, before voters ousted him from office and replaced him with Joseph R. Biden Jr. Mr. Trump’s return has set in motion a rapid-fire series of actions designed to overturn decades of policy and diplomacy.During his first term, the president delivered an annual speech to Congress that included a mix of exaggerations and grievance-filled attacks on his enemies. He is poised to do the same again on Tuesday night, using one of the largest platforms that any modern president gets during his time in the Oval Office.Mr. Trump hinted on Monday that he might use the speech to extend his public feud with President Volodymyr Zelensky of Ukraine after the Oval Office blowup between the two leaders last week. Asked by a reporter whether a deal to share rare-earth minerals was still possible after the shouting, Mr. Trump said that “I’ll let you know,” adding: “We’re making a speech, you probably heard.”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 Dark Heart of Trump’s Foreign Policy

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      The journalist Fareed Zakaria discusses the worldview emerging from Trump’s foreign policy decisions regarding Ukraine, Gaza, China and beyond.The New York TimesThe Dark Heart of Trump’s Foreign PolicyThe journalist Fareed Zakaria discusses the worldview emerging from Trump’s foreign policy decisions regarding Ukraine, Gaza, China and beyond.This is an edited transcript of an episode of “The Ezra Klein Show.” You can listen to the conversation by following or subscribing to the show on the NYT Audio App, Apple, Spotify, Amazon Music, YouTube, iHeartRadio or wherever you get your podcasts.What is the Donald Trump doctrine? What is Donald Trump’s foreign policy?I think the place to begin to try to untangle what we’ve actually seen is to listen to the way Trump and Vice President JD Vance speak about our allies.Archived clip of Donald Trump: I’ve had very good talks with Putin, and I’ve had not such good talks with Ukraine. They don’t have any cards, but they play it tough.Archived clip of JD Vance: The threat that I worry the most about vis-à-vis Europe is not Russia, it’s not China, it’s not any other external actor. What I worry about is the threat from within. The retreat of Europe from some of its most fundamental values — values shared with the United States of America.Archived clip of Donald Trump: I mean, look, let’s be honest: The European Union was formed in order to screw the United States. That’s the purpose of it. And they’ve done a good job of it, but now I’m president.Something is new here. The Trump doctrine that we’ve seen in the first month of this presidency is going to reshape the world much more fundamentally than Trump did in the four years of his first term. That’s in part because of who is around him now — JD Vance and Elon Musk, instead of the foreign policy establishment.So I wanted to have a bigger picture conversation about what this Trump doctrine is. I’m joined today by Fareed Zakaria, the host of “Fareed Zakaria GPS” on CNN, a Washington Post columnist and the author of the best-selling book, “Age of Revolutions.”This episode contains strong language.Ezra Klein: Fareed Zakaria, welcome back to the show.Fareed Zakaria: Always a pleasure, Ezra.To the extent you feel you can define it, what’s the Trump doctrine?Part of the problem with Trump is that he is so mercurial. He’s so idiosyncratic that, just when you think you figured out the Trump doctrine, he goes and says something that kind of sounds like the opposite of the Trump doctrine.But I do think that there is one coherent worldview that Trump seems to espouse and has espoused for a long time. The first ad he took out when he was a real estate developer was in 1987. It was an ad about how Japan was ripping us off economically and Europe was ripping us off by free-riding on security. And what that represents, fundamentally, is a rejection of the open international system that the United States and Europe have built over the last eight decades.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

    • 113 Shares159 Views

      in US Politics

      China promises ‘countermeasures’ after Trump threatens additional 10% tariff

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      Donald Trump has threatened China with an additional 10% tariff on its exports to the US, prompting a promise of “countermeasures” from Beijing and setting the stage for another significant escalation in the two governments’ trade war.The US president also claimed he planned to impose tariffs on Canada and Mexico starting next Tuesday, having delayed their imposition last month after talks with his counterparts.Posting on Truth Social on Thursday, Trump said illicit drugs such as fentanyl were being smuggled into the US at “unacceptable levels” and that import taxes would force other countries to crack down on the trafficking.“We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled,” the Republican president wrote. “China will likewise be charged an additional 10% Tariff on that date.”If Trump makes good on this latest threat, the move would further strain relations between the US and its largest trading partners.In response, China’s commerce and foreign ministries on Friday vowed to retaliate if Chinese companies were affected by the tariffs, accusing the US of using fentanyl as a “pretext” to threaten China.“Such behaviour is purely ‘shifting blame and shirking responsibility,’ which is not conducive to solving its own problems,” a commerce ministry spokesperson said. “If the US insists on proceeding with this course of action, China will take all necessary countermeasures to safeguard its legitimate rights and interests.”Canada and Mexico have promised to retaliate if the US imposes tariffs on their exports. China hit back swiftly when Trump imposed a 10% tariff on its exports earlier this month.The Trump administration has repeatedly raised the threat of tariffs, vowing to rebalance the global economic order in the US’s favor. A string of announced measures have yet to be introduced, however, as economists and businesses urge officials to reconsider.The duties on imports from Canada and Mexico have been repeatedly delayed; modified levies on steel and aluminum will not be enforced until next month, and a wave of “reciprocal” tariffs, trailed earlier this month, will not kick in before April.This week, the US president vowed to slap 25% tariffs on the EU, claiming the bloc was “formed to screw the United States”, although details remain sparse. Duties will be applied “generally”, Trump said, “on cars and all other things”.The prospect of escalating tariffs has already thrown the global economy into turmoil – with consumers expressing fears about inflation worsening and the auto sector possibly suffering if the US’s two largest trading partners in Canada and Mexico are slapped with taxes.The prospect of higher prices and slower growth could create political blowback for Trump.Associated Press contributed reporting More

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      in US Politics

      The Guardian view on Trump’s realignment: the geopolitical plates are moving. Brace for further shocks | Editorial

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      The rumblings prompted by Donald Trump’s re-election soon gathered force. First came tariffs and threats of territorial annexation; then the greater shocks of JD Vance’s Valentine’s Day massacre of European values and Mr Trump’s enthusiastic amplification of Kremlin lines on Ukraine.On Monday came another seismic moment. For more than a decade, the UN security council has been largely paralysed by the split between the five permanent members – Russia and China on one side; the US, France and Britain on the other. This time, when the US brought a resolution calling for an end to the war in Ukraine on the third anniversary of Russia’s invasion, it did not criticise Moscow, demand its withdrawal or back Ukraine’s sovereignty and territorial integrity. The result was that China and Russia backed the resolution – while the UK and France, having failed to temper it, abstained.Earlier, even Beijing had chosen to abstain rather than reject a UN general assembly resolution condemning Moscow as the aggressor in Ukraine. It was passed overwhelmingly, with the backing of 93 states. Yet the US joined Russia in voting against it – along with Belarus, North Korea, Syria and a handful of others. “These are not our friends,” the Republican senator John Curtis wrote on X.The post-1945 order is beyond repair while Mr Trump occupies the White House. Emmanuel Macron’s charm and deftness papered over the problems somewhat when he became the first European leader to meet the US president since his re-election. (Sir Keir Starmer, not noted for his nimbleness or charisma, is likely to find the task somewhat harder this week.) The French president was adroit in flattering Mr Trump even as he told the truth. But it is not surprising that he failed to make any real progress in closing the gap. These are not cracks in the transatlantic relationship, but a chasm.A committed Atlanticist such as Friedrich Merz, on course to shortly become the German chancellor, is compelled to urge independence from the US because “the Americans, at any case the Americans in this administration, do not care much about the fate of Europe”. He warned that European leaders might not be able to talk about Nato in its current form by June. The problem is not only what Mr Trump may do but what he may not. Nato is built on the conviction that countries will stand by the commitments they make. That confidence cannot exist while Mr Trump is president.When Sir Keir told MPs on Tuesday that “Here we are, in a world where everything has changed”, he was commenting on Russian aggression, but everyone understood the real shift underlying his remarks. To note, as he did, that the US-British alliance has survived countless external challenges was not quite a vote of confidence. It tacitly acknowledged that the threat this time is internal.The ground is rocking beneath Europe’s feet. It must brace itself for further shocks. In place of the post-second world war order, Mr Trump envisages a world where alliances are no more than empty words and great powers bluff and bully their way through. Bilateral meetings have their purpose – they may offer minimal respite and buy a little time – but it will require common will to defend the interests of European states. The Polish prime minister, Donald Tusk, suggested that European leaders would be meeting in London at the weekend to discuss security. Their best hope of standing firm is by standing together.Do you have an opinion on the issues raised in this article? If you would like to submit a response of up to 300 words by email to be considered for publication in our letters section, please click here. More

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      As Trump Courts Putin, China’s Leader Xi Emphasizes Close Ties With Russia

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      The Chinese and Russian leaders reaffirmed their relationship in a video call on Monday, an apparent rebuff to the idea that the Trump administration could drive a wedge between them.China’s leader said his country and Russia were “true friends who have been through thick and thin together” after a video call with President Vladimir V. Putin on Monday, according to Chinese state media.The warm words attributed to Xi Jinping were clearly intended to dampen speculation that the Trump administration might succeed in driving a wedge between Beijing and Moscow.The call came on the anniversary of Russia’s 2022 invasion of Ukraine, after three years in which China has served as Russia’s most important foreign partner amid Moscow’s isolation in the West.“History and reality show us that China and Russia are good neighbors who won’t move away, and true friends who have been through thick and thin together, support each other and develop together,” Mr. Xi was quoted as saying by Chinese state media.Mr. Xi said relations between China and Russia were not “affected by any third party,” in what appeared to be an oblique reference to the United States. And he said the two countries’ foreign policies were for the “long term.”The Kremlin issued a similarly cordial statement after the call, describing Mr. Xi and Mr. Putin’s conversation as “warm and friendly.” In a rebuff of the idea that President Trump could divide the two countries, the Kremlin added: “The leaders emphasized that the Russian-Chinese foreign policy link is the most important stabilizing factor in world affairs,” and said the relationship was “not subject to external influence.”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