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      Trump memo outlines plan to slash US state department budget in half

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      The Trump administration is reportedly proposing to slash the state department budget by nearly half in a move that could drastically reduce US international spending and end its funding for Nato and the United Nations, according to an internal memorandum.The memo based on spending cuts devised by the White House office of management and budget envisions the total budget of the state department and USAID, the main foreign assistance body which has been largely dismantled by Elon Musk’s “department of government efficiency”, or Doge, being reduced to $28.4bn, a reduction of $27bn or 48% from what Congress approved for 2025.The cuts would mean drastic decreases in funding for humanitarian assistance, global health and international organizations. Humanitarian assistance programs and global health funding would be slashed by 54% and 55% respectively, according to the memo, which was first reported by the Washington Post.The memo assumes that USAID, previously an independent agency before it was targeted by Doge, would be encompassed fully under the state department umbrella.There would also be drastic reductions to the state department workforce, which currently stands at 80,000.The memo proposes the elimination of 90% of support for international organizations, with financing for some 20 bodies – including the Nato alliance and the UN – eliminated.Targeted funding for the International Atomic Energy Agency and the International Civil Aviation Authority would continue but backing for international peacekeeping missions would end, according to the memo, citing unspecified “recent mission failures”.The cuts would also see the foreign service travel budget and benefits for staff severely curtailed, while the Fulbright scholarship, established by Congress in 1946 and which has facilitated educational exchanges involving more than 40 future heads of state or government, would be eliminated.So too would Bureau of Conflict and Stabilization Operations, which aims to anticipate and prevent wars around the globe.The cuts are yet to be agreed within the administration and would need to be approved by Congress, where they would be likely to encounter stiff resistance, even among many Republicans.The memo, dated 10 April, is signed by Douglas Pitkin, director of budget and planning at the state department, and Peter Marocco, who was until recently the department’s director of foreign assistance and acting deputy director of USAID.Marco Rubio, the secretary of state – who has hitherto favored an activist US role in international affairs – has until Tuesday to respond, the memo says.Chris Van Hollen, the ranking Democrat on the state department and USAID subcommittee of the Senate foreign relations committee, criticized the proposals as “an unserious budget”.“I predict it will hit a wall of bipartisan opposition,” he told the Post.The American Foreign Service Association called on Congress to reject any budget proposing cuts outlined in the memo, which it called “reckless and dangerous”. The cuts suggested “would empower adversaries like China and Russia who are eager to fill the void left by a retreating United States”, the association said. More

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      The Guardian view on Friedrich Merz’s grand coalition: gambling on a new centre ground | Editorial

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      Some years ago, hundreds of German finance ministry staff dressed in black and formed a giant zero to salute their boss, Wolfgang Schäuble, as he left office. It was a tribute to Mr Schäuble’s extreme fiscal conservatism, which had delivered Germany’s first balanced budget in the postwar period. Amid resurgent prosperity in the Angela Merkel years, the so-called black zero – symbolising a constitutional prohibition on public debt – had gradually acquired cult status.As a new administration prepares to take power in Berlin, it seems unlikely that human euro signs will welcome the latest politician to take on Mr Schäuble’s former role. But in dramatic fashion, the spending taps are set to be turned on. Via a swiftly staged March vote in the outgoing Bundestag, “debt brake” dogma was consigned to history by the chancellor‑elect, Friedrich Merz. The way was thus paved for groundbreaking expenditure on defence, and the overhaul of an economy being left behind in a changed, suddenly menacing world.So much for the theory – now for the practice. Mr Merz, the centre-right leader of the Christian Democratic Union (CDU), last week concluded the fastest set of coalition talks since 2009. Pending approval of the deal by Social Democratic party (SPD) members, he is expected to be sworn in as chancellor in by early May. In office, the “grand coalition” agreed between the CDU and the SPD – handed seven ministries including finance and defence – will immediately be confronted by challenges that dwarf those faced by almost all its predecessors.The US under Donald Trump, whether as economic partner or military ally, can no longer be relied upon – an era-defining shift whatever the outcome of the current tariff wars and Mr Trump’s negotiations with Moscow over Ukraine. China, once a vast outlet for the exports which fuelled growth, has morphed into a fearsome competitor, including on German soil. A stagnant economy, combined with a post-Merkel backlash against migration, has accelerated the rise of Alternative für Deutschland (AfD), one of the most extreme far‑right parties in Europe. Last week, a poll fatefully placed the AfD in the lead for the first time.The pressure from the right – both from within his own party and from the AfD – is having an impact. Mr Merz’s Trumpian promise to turn asylum seekers away at German borders from his “first day”, along with other draconian measures, will only allow the far right to up the ante still further. Meanwhile, he also appears to be looking for wriggle room on agreed coalition commitments to the less well off and to climate targets.Nevertheless, the broad economic thrust of the deal remains right for troubling times. The European Central Bank must play its part – by keeping yields on a leash. As Germany’s neighbours deal with similar geopolitical threats and uncertainties, the ability of the EU’s most powerful member state to show leadership and forge a path through the crisis will be crucial. With short-term growth acutely vulnerable to mood swings in the White House, the effects of spending will take time to be felt in people’s everyday lives. But the prospect of a transformative increase in public investment offers the hope of industrial renaissance and a restoration of voters’ trust in the political centre.Alongside his SPD counterparts last week, Mr Merz confidently announced that Germany was “back on track”. Europe badly needs him to be right.

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      Tariff turmoil to continue as Trump warns nobody ‘off the hook’ amid smartphone exemption – US politics live

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      Good morning and welcome to our US politics blog.In an announcement made late on Friday evening, Donald Trump’s presidential administration exempted smartphones and computers from the 125% levies imposed on imports from China as well as other “reciprocal” tariffs.The devices would be excluded from the 10% global tariff that Trump recently imposed on most countries, along with the much heftier import tax on China, in what seemed like a softening of the president’s trade positioning towards Beijing.US stock markets were expected to stage a recovery after the announcement. Shares in Apple and chip maker Nvidia were on course to surge after tariffs on their products imported into the US were lifted for three months.China’s commerce ministry said the exemption demonstrated the US taking “a small step toward correcting its erroneous unilateral practice of ‘reciprocal tariffs’,” and suggested the American administration cancel the whole punitive tariff regime.However, Trump’s commerce secretary, Howard Lutnick, said on Sunday that critical technology products from China would face separate new duties along with semiconductors within the next two months.“He’s saying they’re exempt from the reciprocal tariffs, but they’re included in the semiconductor tariffs, which are coming in probably a month or two,” Lutnick said in an interview on ABC. “These are things that are national security, that we need to be made in America.”Amid the confusion over the White House’s tariff policy, Trump said he would provide more details on his administration’s approach on semiconductor tariffs later today.But he suggested any tariff exemption for China-made smartphones would be short-lived, writing on his social media: “Nobody is getting off the hook for unfair trade balances”. Stay with us throughout the day as we bring you the latest tariff developments and other US political stories.Spain’s economy minister, Carlos Cuerpo, is expected to meet the US treasury secretary, on Tuesday as he aims to bolster bilateral ties between the two countries.The Trump administration has slapped a 10% tariff on imports of most European goods, including olive oil, although it announced a 90-day pause last week on higher, 25% “reciprocal” duties.Spain is the world’s top exporter of olive oil and also sells important quantities of auto parts, steel and chemicals to the US. The country’s prime minister, Pedro Sánchez, has announced a €14.1bn (£12.2bn; $16bn) government aid package to industry to lessen the domestic impact of Trump’s levies.Maya Yang, a breaking news reporter and live blogger for Guardian US, has filed this story about a warning over the potential consequences of Trump’s erratic economic policies:Billionaire investor Ray Dalio said that he is worried the US will experience “something worse than a recession” as a result of Donald Trump’s trade policies.Speaking to NBC’s Meet the Press on Sunday, the 75-year-old hedge fund manager said: “I think that right now we are at a decision-making point and very close to a recession. And I’m worried about something worse than a recession if this isn’t handled well.”He went on to add: “A recession is two negative quarters of GDP and whether it goes slightly there. We always have those things. We have something that’s much more profound. We have a breaking down of the monetary order. We are going to change the monetary order because we cannot spend the amounts of money.”Dalio’s comments come in response to a tumultuous week across the global stock markets following the US president’s tariffs policies that include a 145% tariff raise on China. The billionaire also said there are “profound changes in our domestic order … and world order”, comparing current times with the 1930s.“I’ve studied history and this repeats over and over again. So if you take tariffs, if you take debt, if you take the rising power challenging existing power, if you take those factors and look at the factors, those changes in the orders, the systems, are very, very disruptive. How that’s handled could produce something that is much worse than a recession. Or it could be handled well,” he said.Dalio, who correctly predicted the 2008 recession, also said the current economic state of the US is “at a juncture”.“Let’s take the budget. If the budget deficit can be reduced to 3% of GDP, it will be about 7% if things are not changed. If it could be reduced to about 3% of GDP, and these trade deficits and so on are managed in the right way, this could all be managed very well,” he said.He went on to urge congressional members to take what he calls the “3% pledge”, adding that if they don’t, there will be a supply and demand problem for debt with results that will be “worse than a normal recession.”You can read the full story here:Chinese President Xi Jinping will be welcomed by Vietnam’s President Luong Cuong today as he seeks to strengthen economic ties in south-east Asia amid a trade war with Washington that has caused turmoil in global markets.In an article for the Nhan Dan newspaper, Xi called for more regional cooperation, saying China and Vietnam were “friendly socialist neighbours sharing the same ideals and extensive strategic interests”.He added that a “trade war and tariff war will produce no winner, and protectionism will lead nowhere”, without explicitly mentioning the US.The visit, planned for weeks, comes as Beijing faces 145% US duties, while Vietnam is negotiating a reduction of threatened US tariffs of 46%. China is Vietnam’s biggest trading partner; Hanoi has a good relationship with both Washington and Beijing.As my colleague Rebecca Ratcliffe notes in this story, officials in Hanoi were shocked when Vietnam was hit with the 46% tariff, even after various efforts to appease the Trump administration. The tariff, which has been paused, threatens to devastate the country’s ambitious economic growth plan.Xi will visit Vietnam, a manufacturing powerhouse, from 14 to 15 April, and Malaysia and Cambodia from 15 to 18 April. He last visited Cambodia and Malaysia nine and 12 years ago, respectively.Xi’s trip to Hanoi, his second in less than 18 months, aims to consolidate relations with a strategic neighbour that has received billions of dollars of Chinese investments in recent years as China-based manufacturers moved south to avoid tariffs imposed by the first Trump administration.Good morning and welcome to our US politics blog.In an announcement made late on Friday evening, Donald Trump’s presidential administration exempted smartphones and computers from the 125% levies imposed on imports from China as well as other “reciprocal” tariffs.The devices would be excluded from the 10% global tariff that Trump recently imposed on most countries, along with the much heftier import tax on China, in what seemed like a softening of the president’s trade positioning towards Beijing.US stock markets were expected to stage a recovery after the announcement. Shares in Apple and chip maker Nvidia were on course to surge after tariffs on their products imported into the US were lifted for three months.China’s commerce ministry said the exemption demonstrated the US taking “a small step toward correcting its erroneous unilateral practice of ‘reciprocal tariffs’,” and suggested the American administration cancel the whole punitive tariff regime.However, Trump’s commerce secretary, Howard Lutnick, said on Sunday that critical technology products from China would face separate new duties along with semiconductors within the next two months.“He’s saying they’re exempt from the reciprocal tariffs, but they’re included in the semiconductor tariffs, which are coming in probably a month or two,” Lutnick said in an interview on ABC. “These are things that are national security, that we need to be made in America.”Amid the confusion over the White House’s tariff policy, Trump said he would provide more details on his administration’s approach on semiconductor tariffs later today.But he suggested any tariff exemption for China-made smartphones would be short-lived, writing on his social media: “Nobody is getting off the hook for unfair trade balances”. Stay with us throughout the day as we bring you the latest tariff developments and other US political stories. More

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      It is difficult to imagine a post-American world. But imagine it we must | Nesrine Malik

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      “People speak with forked tongues about America,” a veteran foreign correspondent once said to me. It was a long time ago – during a debate about whether the US should intervene in a foreign conflict – and I have never forgotten it. What they meant was that just as the US is condemned for foreign intervention in some instances, it is also called upon to do so in others and then judged for not upholding its moral standards. That dissonance persists, and is even more jarring as we approach the 100th day of Donald Trump’s second term. There is a duality to how the US is seen: as both a country that wantonly violates international law and as the only one capable of upholding that system of law and order. This duality, always tense, is no longer sustainable.I have felt this ambivalence myself – the contradictory demand that the US stay out of it but also anger that it is not doing more. In Sudan, Washington frustratingly refuses to pressure its ally, the UAE, into stopping pumping arms and funding into the conflict. But what proof or history is there to support the delusional notion that the US cares about a conflict in which it has no direct interest? It is an expectation of moral policing from an amoral player that I remember even in childhood, after Iraq invaded Kuwait and the Arab world was rocked with fear of regional war. A fierce debate in our classroom in Sudan on the merits of US intervention was silenced by one indignant evacuee from Kuwait, who said that the most important thing was to defeat Saddam Hussein. Her words occasionally echo in my mind: “We must deal with the greater evil first.”Even in Gaza, as Congress passed package after package of billions in military aid to Israel, there remained some residual hope – long extinguished now – that the phone call to Benjamin Netanyahu would finally come. And even as Trump emboldens Vladimir Putin, abandons Ukraine and slaps tariffs on allies, you can detect that belief in the fundamental viability of the US as an actor that can still default to rationality, and even morality.But, for the first time that I can remember, the conversation is going in a new direction. The appeals to the difference between the presidency and other more solid US institutions are quieter now, as universities, law firms and even parts of the press kowtow to their erratic new king. The questions now being asked are about how Europe and the rest of the world can pivot away from the US, from its USAID programmes nestled within the health budgets of developing countries, and its global system of military assistance and deterrence. But they sound less like practical suggestions and more like attempts to get heads around a reality that is impossible to countenance.The challenge is technical and psychological. It is difficult to imagine a post-American world because America crafted that world. When the US becomes a volatile actor, the very architecture of the global financial order starts to wobble. We saw this in the crisis of confidence in the dollar in the aftermath of Trump’s “liberation-day” tariffs. The robustness of the rule of law and separation of powers – cornerstones of confidence in an economy – are also now in doubt, as the administration goes to war with its own judiciary and the president himself boasts about how many people in the room with him made a killing out of his stock market crash. Is it insider trading if your source is the president?Just as formidable is the mental task of divestment from the US. A friend who holds a green card but lives under an illiberal regime in Asia told me that, deep down, he always felt protected from the dangers of his country’s domestic politics by the knowledge that there was a safe haven to which he could retreat in case of persecution. No longer, as legal residents and visitors are hounded by Immigration and Customs Enforcement (Ice) or turned away at the border. I know others who have cancelled work trips to the US for fear of deportation or blacklisting. With that insecurity comes an awareness that, for some in the global south who always knew that the US was not a benign presence, there was still the belief that there was something within its own borders that curbed its excesses. This was partly true, but also a reflection of US cultural power. The pursuit of liberty and the pursuit of happiness, “give me … your huddled masses”, the Obama hope iconography; all resonant and powerful touchstones. They are now reduced to dust. It is one thing to know that the US was never the sum of these parts, but another to accept it.And there is a fear in accepting it. Because, for all its violations, the advent of a post-US world induces a feeling of vertigo. A world in which there is no final authority at all might be scarier than a world where there is a deeply flawed one. What is daunting is the prospect of anarchy, a new world where there is no organising principle in a post-ideological, everyone-for-themselves system. Not a cold war order divided into capitalist, communist and non-aligned. And not a post-cold war one divided into western liberal overlords, competing non-democracies and, below them, smaller clients of both.But what the US’s breakdown should really trigger is not overwhelm and bewilderment, but a project to build a new global order in which we all have a stake. What the US chooses to do in terms of foreign and economic policy can affect your shopping basket and the very borders of the nation state in which you live. It remains the world’s largest economy, has the world’s largest military, and is the home of the world’s most powerful entertainment complex. This centrality combined with its collapse reveals the fact that the problem goes deeper than Trump. The world was always dangerously overexposed to whatever direction the US took.Ironically, this all might be the beginning of a process that leads to genuine “liberation days” for other countries, but not the US itself. There is pain ahead, but also a sort of independence. Above all, there might finally be a recognition that the US’s definition of peace and prosperity was always its own, enforced by sheer force of power and propaganda.

      Nesrine Malik is a Guardian columnist

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      Ta-Nehisi Coates on why stories matter in the age of Trump – podcast

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      “This is a cultural president. Make no mistake about it.”For Ta-Nehisi Coates, the award-winning writer and journalist, the US president, Donald Trump, and his allies clearly understand the power of story-telling in politics. Coates has recently written a new book, The Message, and he tells Michael Safi that the stories told in TV, films, literature and beyond are not a distraction from politics today but are actively shaping it.The pair discuss whether the political centre-left in the US has become uncomfortable competing in the cultural realm and is in many ways the more conservative movement, adopting the role of steward of the status quo. They also examine the role of white supremacy in the narratives emerging against progressive, identity politics.Coates describes a visit to the Middle East and the significant gulf he sees between how the Israel-Palestine conflict is portrayed in US media and what he witnessed on the ground. The writer also reflects from an African-American perspective on the stories being told about Israel and outlines the reaction to his book so far.Support the Guardian today: theguardian.com/todayinfocuspod More

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      Trump news at a glance: Deep confusion as Trump signals new tariffs on smartphones and computers

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      Donald Trump’s tariff war has dived deeper into chaos after a cabinet official telegraphed new levies on semiconductors – a crucial component in electronic goods – just days after the Trump administration exempted computers and smartphones from reciprocal tariffs.Trump’s commerce secretary, Howard Lutnick, said in an interview with NBC that the tariff exemption on several electronic devices was just temporary and that new duties would come in “a month or two”. Semiconductors would be targeted with new tariffs, he said.Trump was forced to intervene, saying he would lay out the new tariffs on Monday and any relief would be short-lived. “NOBODY is getting ‘off the hook’,” he wrote on his Truth Social platform, adding: “Especially not China which, by far, treats us the worst!”Here are the key stories at a glance:US markets on rollercoaster as Trump says electronics were never exemptUS stock markets were expected to stage a recovery after the announcement of smartphone and computer tariff exemptions, and shares in Apple and chip maker Nvidia were on course to soar. That outlook could change and hinges on what Trump may announce on Monday.Trump denied they were ever actually exempt from tariffs because a previous tariff still exists on them. “There was no Tariff ‘exception’,” Trump said in a social media post on Sunday, adding that the levies were merely “moving to a different Tariff ‘bucket.’”Read the full storyHedge fund billionaire says US may face ‘worse than a recession’Billionaire investor Ray Dalio said he was worried the US would experience “something worse than a recession” as a result of Trump’s trade policies. Speaking to NBC’s Meet the Press on Sunday, the 75-year-old hedge fund manager said: “I think that right now we are at a decision-making point and very close to a recession. And I’m worried about something worse than a recession if this isn’t handled well.”He added: “We have something that’s much more profound. We have a breaking down of the monetary order. We are going to change the monetary order because we cannot spend the amounts of money.”Read the full story‘Everything’s fine with Elon,’ says Trump adviser Navarro after Musk calls him ‘moron’Peter Navarro, a top trade adviser to Trump, said he and Elon Musk were “great” after the president’s billionaire business adviser publicly called him “a moron” who was “dumber than a sack of bricks” over his stance on tariffs.“I’ve been called worse,” Navarro said Sunday on NBC’s Meet the Press in some of his most extensive remarks about the insults Musk directed at him days earlier. Praising Musk’s role in the so-called department of government efficiency (Doge), Navarro added: “Everything’s fine with Elon.” Navarro’s evident attempt to be magnanimous came after Musk criticized Trump’s proposals for global tariffs, which the president has since set at 10% on all countries, with some nations receiving higher trade levies.Read the full storyMan in custody after Pennsylvania governor’s home set ablaze, say policePolice say a person is in custody after a suspected arson fire at the mansion of Pennsylvania’s governor, Josh Shapiro. No one was injured in the blaze but the fire damaged parts of the home where Shapiro and his family slept.Pennsylvania state police colonel Christopher Paris identified the man in custody as Cody Balmer, 38, of Harrisburg, and said the investigation was continuing. Francis Chardo, the Dauphin county district attorney, said forthcoming charges would include attempted murder, terrorism, attempted arson and aggravated assault.Read the full storyTrump is ‘fully fit’ and manages high cholesterol, says White House physicianDonald Trump – who at 78 is the oldest person to ever be elected US president – controls high cholesterol with medication and has elevated blood pressure but is “fully fit”, White House physician Sean Barbella said in a report released on Sunday, two days after Trump underwent a routine physical.Barbella wrote that Trump exhibited “excellent cognitive and physical health” and that he was up to date on all recommended vaccines. Trump himself has previously spread debunked claims about links between vaccines and autism.Read the full story9/11 responders and survivors shaken by US health cutsA program that provides free healthcare to first responders and survivors of the World Trade Center terror attacks has been in turmoil for months, with services cut, restored and cut again as part of the Trump administration’s “restructuring” of the federal health department. Following the most recent cuts, groups representing survivors and even Democratic US senators say they have no clarity on how the program will continue to provide benefits.“This is bureaucratic cruelty,” said Michael Barasch, an attorney who represents thousands of first responders and survivors of the attacks. Barasch described people suffering post-traumatic stress disorder from picking up body parts after the attack, unsure of whether their medical services will continue. Other were cancer patients, anxious about what services they could access, he said.Read the full storyUS deports 10 more alleged gang members to El Salvador, says RubioThe US has deported another 10 people that it alleges are gang members to El Salvador, secretary of state Marco Rubio said on Sunday, a day before that country’s president, Nayib Bukele, is due to visit the White House. Rubio praised the alliance between Trump and Bukele as “an example for security and prosperity in our hemisphere”.Trump administration officials have repeatedly made public statements alleging that detained immigrants are gang members – claims they have not backed up in court. The Trump administration has deported hundreds of Venezuelans to a prison in El Salvador under the 1798 Alien Enemies Act.Read the full storyFeatured essay: the rise of end times fascism In this essay, Naomi Klein and Astra Taylor argue that the governing ideology of the far right has become “a monstrous, supremacist survivalism” and that the world must build a movement strong enough to stop them.“It is terrifying in its wickedness, yes. But it also opens up powerful possibilities for resistance,” they write. “To bet against the future on this scale – to bank on your bunker – is to betray, on the most basic level, our duties to one another, to the children we love, and to every other life form with whom we share a planetary home.”Read the full storyWhat else happened today:

      Russia launched a deadly Palm Sunday attack on churchgoers in Ukraine. It may force Washington to get tough with Putin, Dan Sabbagh writes in an analysis from Kyiv.

      Pete Marocco, an official who played a major role in dismantling USAid, has left the state department.

      Saturday Night Live’s cold open mocked Trump’s on-again-off-again tariffs, with James Austin Johnson playing the president and comparing himself to Jesus.
      Catching up? Here’s what happened on 12 April 2025. More

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      Trump warns exemptions on smartphones, electronics will be short-lived, promises future tariffs

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      The exemption of smartphones, laptops and other electronic products from import tariffs on China will be short-lived, top US officials have said, with Donald Trump warning that no one was “getting off the hook.”“There was no Tariff ‘exception’, Trump said in a social media post on Sunday. “These products are subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff ‘bucket.’”In the post on his Truth Social platform, Trump promised to launch a national security trade investigation into the semiconductor sector and the “whole electronics supply chain”.“We will not be held hostage by other Countries, especially hostile trading Nations like China,” he added.The White House had announced on Friday the exclusion of some electronic products from steep reciprocal tariffs on China. US stock markets were expected to stage a recovery after the announcement. Shares in Apple and chip maker Nvidia were on course to soar after tariffs on their products imported into the US were lifted for 90 days.China’s commerce ministry said the exemption demonstrated the US taking “a small step toward correcting its erroneous unilateral practice of ‘reciprocal tariffs’,” and insisted Washington cancel the whole tariff regime.Zhang Li, president of the China Center for Information Industry Development, told state media outlet, China Daily, that the exemptions proved “how important China is to major US tech companies that rely heavily on the country for manufacturing and innovation”.However, Trump’s commerce secretary, Howard Lutnick, said on Sunday that critical technology products from China would face separate new duties along with semiconductors within the next two months.Lutnick said Trump would enact “a special focus-type of tariff” on smartphones, computers and other electronics products in a month or two, alongside sectoral tariffs targeting semiconductors and pharmaceuticals. The new duties would fall outside Trump’s so-called reciprocal tariffs on China, he said.“He’s saying they’re exempt from the reciprocal tariffs, but they’re included in the semiconductor tariffs, which are coming in probably a month or two,” Lutnick said in an interview on ABC, predicting that the levies would bring production of those products to the United States. “These are things that are national security, that we need to be made in America.”The world’s two largest economies have been locked in a fast-moving game of brinkmanship since Trump launched a global tariff assault that particularly targeted Chinese imports. China’s leader Xi Jinping said on Monday that protectionism “leads nowhere” and that a trade war would have “no winners”.Tit-for-tat exchanges have seen US levies imposed on China rise to 145%, and Beijing setting a retaliatory 125% levy on US imports. On Friday Beijing said it would ignore any future raises in tariffs by Trump, as they were already so high that there was “no market acceptance for US goods” in China.On Monday a spokesperson for China’s Customs agency said the country’s exports were facing a complex and severe external situation but “the sky will not fall”. They said China’s domestic demand was broad, and they were building a diversified market.Trump’s back-and-forth on tariffs has triggered the wildest swings on Wall Street since the Covid pandemic of 2020. The benchmark Standard & Poor’s 500 index is down more than 10% since Trump took office on 20 January.After announcing sweeping import taxes on dozens of trade partners, Trump abruptly issued a 90-day pause for most of them. China was excluded from the reprieve.The fallout from Trump’s tariffs – and subsequent whiplash policy reversals – sent shock waves through the US economy, with investors dumping government bonds, the dollar tumbling and consumer confidence plunging.US senator Elizabeth Warren, a Democrat, criticised the latest revision to Trump’s tariff plan, which economists have warned could dent economic growth and fuel inflation.“There is no tariff policy – only chaos and corruption,” Warren said on ABC’s “This Week,” speaking before Trump’s latest post on social media.China has sought to strengthen ties with neighbouring countries amid the escalating trade war. Xi will visit Vietnam on Monday as he begins a tour of south-east Asia.With Reuters and Agence France-Presse More

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      US deports 10 more alleged gang members to El Salvador, says Rubio

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      The US has deported another 10 people that it alleges are gang members to El Salvador, secretary of state Marco Rubio said on Sunday, a day before that country’s president is due to visit the White House.“Last night, another 10 criminals from the MS-13 and Tren de Aragua Foreign Terrorist Organizations arrived in El Salvador,” Rubio said in an Twitter/X post.The alliance between Donald Trump and El Salvador president Nayib Bukele “has become an example for security and prosperity in our hemisphere”, Rubio added.The US president is due to meet Bukele at the White House on Monday.Trump said on Saturday he was looking forward to meeting Bukele and praised him for taking “enemy aliens” from the United States. He said the two countries were working closely to “eradicate terrorist organizations”.Administration officials have repeatedly made public statements alleging that detained immigrants are gang members that they have not backed up in court.The Trump administration has deported hundreds of Venezuelans to a prison in El Salvador under the 1798 Alien Enemies Act.Lawyers and relatives of the migrants held in El Salvador say they are not gang members and had no opportunity to contest the US government assertion that they were. The Trump administration says it vetted migrants to ensure they belonged to Tren de Aragua, which it labels a terrorist organization.The deportations have been challenged in federal court. The US supreme court said the US government must give sufficient notice to immigrant detainees to allow them to contest their deportations. It did not say how those already in El Salvador could seek judicial review of their removals.The White House has come under fire recently after a Maryland man was wrongly deported to El Salvador last month. He was deported on one of three high-profile deportation flights to El Salvador made up chiefly of Venezuelans whom the government had accused of being gang members and assumed special powers to expel without a hearing.Trump administration lawyers were able to confirm on Saturday that Kilmar Abrego García, 29, remains confined in a notorious prison in El Salvador. However, the White House did not detail the steps it was taking to return Abrego García to the United States. More