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    Trump accused of caving to big business after deal to cut Swiss tariffs to 15%

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    Donald Trump agreed to cut US tariffs on Switzerland from 39% to 15% as part of a new trade pact, lowering duties that strained economic ties and hit Swiss exporters.The two countries have signed a “non-binding memorandum of understanding”, the Swiss government announced, following bilateral talks in Washington and intense lobbying by Swiss firms.Critics seized on the announcement as evidence that the White House had put corporate interests ahead of those of struggling Americans, as inflation continues to increase the cost of living nationwide.“While prices for American families are going way up because of Trump’s chaotic tariffs, it’s the billionaires and giant corporations cozying up to Trump that get relief,” Senator Elizabeth Warren, a Massachusetts Democrat, said.Leading Swiss executives met Trump at the White House earlier this month. Rolex, the luxury Swiss watchmaker, also invited the president and a string of his officials to the US Open tennis final in September.Upon arrival, Trump “did ask in jest whether he would have been invited had it not been for the tariffs”, Jean-Frédéric Dufour, the Rolex CEO, later disclosed. This was “a moment that brought a round of laughter all around”, he added.Dufour denied that Rolex had engaged in “any negotiation” with the US over tariffs. The White House dismissed Warren’s criticism as “asinine conspiracy theories”.Trump was gifted a golden table clock by Rolex, which was later spotted on his desk in the Oval Office. Another firm is said to have donated an engraved gold bar.The US trade representative, Jamieson Greer, also confirmed the breakthrough on Friday, telling CNBC, the financial news network, that both sides had “essentially reached a deal”.The Trump administration agreed to limit US tariffs on Switzerland and Liechtenstein “to a maximum of 15%” under the deal, according to a statement from the Swiss government.This brings US tariffs on Switzerland in line with those on the European Union – allowing Swiss exporters the same treatment as rivals in neighboring countries.In return, Switzerland will reduce tariffs “on a range of US products”, the statement said. “In addition to all industrial products, fish and seafood, this includes agricultural products from the US that Switzerland considers non-sensitive.”Swiss officials also committed to granting a series of quotas for US goods that can be exported to Switzerland on a duty-free basis, including 500 tonnes of beef, 1,000 tonnes of bison meat and 1,500 tonnes of poultry.skip past newsletter promotionafter newsletter promotion“The date for implementing these market access concessions will be coordinated with the US to ensure that customs duties are reduced at the same time,” the statement said.This is the latest “framework” trade deal to be struck by Trump and his administration. Unlike formal free trade agreements, which are substantial and can take years to negotiate, these pacts have typically been narrow in focus and light on detail.The precise timing of the implementation, and when the new tariffs and quotas will be enforced, has yet to be finalized.“They’re going to send a lot of manufacturing here to the United States – pharmaceuticals, gold smelting, railway equipment,” Greer claimed on CNBC, “so we’re really excited about that deal and what it means for American manufacturing.”The Swiss government said companies in the country were “planning to make direct investments” in the US worth $200bn “by the end of 2028”. More

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      Trump’s supreme court strategy is to redefine ‘tariffs’. Will the justices buy it?

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      Donald Trump faced arguably the biggest test so far of his contentious use of executive power at the US supreme court on Wednesday. The stakes could not be higher – “literally, LIFE OR DEATH” for the US, at least according to the president.Trump’s signature, globe-rattling economic policy, his sweeping tariffs regime, was in the dock – specifically, the legal mechanism his administration has used to enforce it. And the man dispatched to defend the White House put forward a somewhat puzzling argument.“These are regulatory tariffs,” D John Sauer, US solicitor general, assured the court. “They are not revenue-raising tariffs. The fact that they raise revenue is only incidental.”It was a curious, and more than a little confusing, explanation – tariffs on goods from overseas might raise revenue, but are not revenue-raising – designed to counter rulings by lower courts that set the stage for this test before the highest court in the land.A federal appeals court in Washington DC ruled in August that the International Emergency Economic Powers Act (IEEPA), a 1977 law Trump invoked to impose many of his tariffs, did not grant “the power to tax” to the president.Congress is granted sole authority under the constitution to levy taxes. Trump bypassed Congress – lawfully, his aides insist – to drive through a policy estimated to equate to the largest tax hike since 1993.Thus, on Wednesday morning, the administration appeared to argue before the supreme court that these tariffs – taxes paid by myriad US companies on imported products – were not really taxes at all.Critics are not having it. “Anybody can look up in the dictionary,” Maria Cantwell, Democratic senator from Washington, told the Guardian. “Tariffs are an import tax, plain and simple. I would assume the administration understands that.”“I actually am surprised that it was so lacking,” Cantwell added, of the administration’s case.The court did not appear persuaded, either. “You want to say tariffs are not taxes,” said the liberal justice Sonia Sotomayor. “But that’s exactly what they are.”Some conservatives on the bench also sounded skeptical. “The vehicle is the imposition of taxes on Americans, and that has always been a core power of Congress,” said the chief justice John Roberts.The administration’s argument that the fact tariffs raise money is “only incidental” might be more persuasive if the president spent less time boasting about the amount of money they raised. “My tariffs are bringing in hundreds of billions of dollars,” Trump declared in a speech hours after the hearing.The president has argued – in typically binary terms – that the fate of his flagship economic strategy is aligned with that of the nation. But there are many business owners in the US, grappling with the abrupt imposition of steep tariffs, who believe the fate of their companies has been jeopardized by this regime.While official statistics (at least, those published before the government shutdown) have shown persisting inflation and a stalling jobs market, Trump continues to erroneously claim his agenda is producing stellar results. “Our Economy is BOOMING, and Costs are coming way down,” he wrote on social media during Wednesday’s hearing.It is ultimately down to voters, as some did on Tuesday, to deliver their verdict on Trump’s agenda. For now, a handful of small firms, together with a dozen states, have joined forces to challenge the way in which he has rammed it through.“We think that this case is really about executive overreach,” said Stephen Woldenberg, senior vice-president of sales at Learning Resources, a toy company based near Chicago that sued the administration to invalidate Trump’s tariffs as exceeding his authority.At the heart of this case is really a “broader issue”, according to Woldenberg, of who sets taxes – and how – across the US. “We weren’t really willing to let politicians, and really a single politician, decide our fate,” he said.That fate is now in the hands of a court Trump has shaped. The justices have pledged to fast-track their decision. On Wednesday, at least, most sounded unpersuaded by the administration’s defense. More

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      US supreme court to hear oral arguments on legality of Trump imposing tariffs

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      Donald Trump’s sweeping tariffs on the world will be scrutinized by the US supreme court today, a crucial legal test of the president’s controversial economic strategy – and his power.Justices are scheduled to hear oral arguments today on the legality of using emergency powers to impose tariffs on almost every US trading partner.In a series of executive orders issued earlier this year, Trump cited the International Emergency Economic Powers Act, or IEEPA, a 1977 law which in some circumstances grants the president authority to regulate or prohibit international transactions during a national emergency, as he slapped steep duties on imports into the US.The supreme court – controlled by a rightwing supermajority that was crafted by Trump – will review whether IEEPA grants the president the authority to levy a tariff, a word not mentioned in the law. Congress is granted sole authority under the constitution to levy taxes. The court has until the end of its term, in July 2026, to issue a ruling on the case.Lower courts have ruled against Trump’s tariffs, prompting appeals from the Trump administration, setting up this latest test of Trump’s presidential power. The supreme court has largely sided with the administration through its shadow docket to overrule lower courts.Should the supreme court ultimately rule against Trump’s use of IEEPA to impose tariffs, it will force the White House to go back to the drawing board and reconsider how to enforce an aggressive economic policy which has strained global trade ties.Should the court side with the administration, however, it will embolden a president who has repeatedly claimed – despite warnings over the risk of higher prices – that tariffs will help make America great again, raising “trillions” of dollars for the federal government and revitalizing its industrial heartlands.Trump himself has argued the court’s decision is immensely important. The case is “one of the most important in the History of the Country”, he wrote on social media over the weekend, claiming that ruling against him would leave the US “defenseless”.“If we win, we will be the Richest, Most Secure Country anywhere in the World, BY FAR,” Trump claimed. “If we lose, our Country could be reduced to almost Third World status – Pray to God that that doesn’t happen!”But some of his senior officials have suggested that, if the court rules against their current strategy, they will find another way to impose tariffs. Treasury secretary Scott Bessent, who plans to attend the oral arguments in the case, has said the administration has “lots of other authorities” to do so.According to the non-partisan Tax Foundation, Trump’s tariffs amount to an average tax increase per US household of $1,200 in 2025 and $1,600 in 2026.A coalition of 12 states and small businesses, Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, New York, Oregon and Vermont, have sued the Trump administration to block the tariffs.skip past newsletter promotionafter newsletter promotionSeveral other small businesses also filed suit against the Trump administration to block the tariffs. The cases, Learning Resources, Inc v Trump and Trump v VOS Selections, were consolidated by the court.“No one person should have the power to impose taxes that have such vast global economic consequences,” Jeffrey Schwab, Liberty Justice Center’s senior counsel, said in a statement on the lawsuit filed on behalf of small businesses against the tariffs. “The Constitution gives the power to set tax rates – including tariffs – to Congress, not the President.”About 40 legal briefs have been filed in opposition to the tariffs, including from the US Chamber of Commerce, the largest business lobby group in the US.The US Chamber has urged Congress to reclaim its constitutional role in setting tariffs, stating in a letter on 27 October to the US Senate: “American families are facing thousands of dollars in higher prices as a result of these increased taxes. Small businesses, manufacturers, and ranchers are struggling with higher costs, with additional economic pain likely in the coming months.”The US Senate voted 51 to 47 last week to nullify Trump’s so-called reciprocal tariffs, with four Republicans joining Democrats in the vote, though the House is not expected to take similar action.But despite opposition in the Senate, the House of Representatives is unlikely to take similar action. House Republicans created a rule earlier this year that will block resolutions on the tariffs from getting a floor vote. More

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      The ghost of Ronald Reagan has spooked Trump over tariffs | Sidney Blumenthal

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      Halloween came early for Donald Trump. Ronald Reagan spooked him. Trump had a startled reaction to the TV ad that appeared during the first game of the World Series, placed by the provincial government of Ontario, featuring excerpts from President Reagan’s radio talk in April 1987 in which he explained the danger of trade wars. “Their Advertisement was to be taken down, IMMEDIATELY, but they let it run last night during the World Series, knowing that it was a FRAUD,” Trump posted. It was, he falsely claimed, a “serious misrepresentation of the facts, and hostile act”. In retaliation, he slapped an additional 10% tariff on Canada.Trump was apparently horrified at the sudden presence of the ghost of conservatism past, who had kept the outlandish bounder at arm’s length and whom Trump regarded warily if not nervously. Reagan was the original, bigger and more successful performer, whose appeal was as the harbinger of morning in America, not the grim reaper of a zombie nightfall. Canada is being punished for Trump’s fright.Trump seemingly fears Reagan’s image might be taken as a warning to the supreme court to rule against him in the impending case of Trump v VOS, in which the basis of his tariff regime is at stake. “Canada is trying to illegally influence the United States Supreme Court in one of the most important rulings in the history of our Country,” Trump claimed.Two courts have already ruled against Trump for his invocation of national security under the International Emergency Economic Powers Act (IEEPA) to impose tariffs on whomever he wishes without the approval of the Congress. In late May, the US court of international trade held that most of Trump’s tariffs were “contrary to law”. He appealed to the US court of appeals for the federal circuit, which on 29 August affirmed the CIT ruling. The appeals court observed that “tariffs are a core Congressional power”. The IEEPA does not explicitly grant the president the authority to impose tariffs. Even if the IEEPA were interpreted to allow tariffs, it would represent an unconstitutional delegation of Congress’s power to the president.Twice rebuffed, Trump has appealed to the supreme court. The argument is scheduled for 5 November. Trump’s hair-trigger response to the sudden appearance of Reagan’s shade revealed his deep unease with how the court might rule. Even though the court has permitted many of his policies to proceed temporarily without legal justification through the “shadow docket”, he seems to know he might be on shaky ground here. In the tariff case, the amicus briefs against Trump were filed by some of the leading lights of the conservative legal world. Trump accused the appeals court judges of “hatred” and called Leonard Leo, the co-chair of the Federalist Society, which provided Trump with the lists of nominees for judgeships, a “sleazebag”. Trump is clearly afraid.On 15 October Trump announced that he might attend the oral arguments in person, to become the first sitting president ever to witness a supreme court case. Trump apparently has no concern about tainting the perception of the court’s objectivity or legitimacy. Either the court works for him or it does not; the justices fall in line or they are among the enemies within. To Trump, the Republican court should be no different from the Department of Justice under his thumb. He evidently views the separation of powers as a personal affront, unfairly stealing from him. Everything is a zero-sum game, not just international trade. “I’m the speaker and the president,” Trump has joked, according to the New York Times.Trump’s appearance in the sanctum of the court would let them know who’s the real chief. Just as the attorney general, Pam Bondi, and her deputy, Todd Blanche, sat behind Emil Bove, Trump’s henchman and nominee for the federal appeals bench, as Bove faced the senators at his confirmation hearing, Trump could sit behind his solicitor general, D John Sauer, to glower at the black-robed justices. His presence would threaten to strip away the veneer of the court’s independence as well as show his distrust for his own lawyer’s ability to prevail on the merits. Whether he wins or loses the case, he has personalized it. Winning would be interpreted as a victory for intimidation; losing would be flouting him rather than ruling on the merits. Either way, he would be poison and the decision would be, as it is said in the law, the fruit of the poisonous tree.Trump has been losing his case so far because of his transparently weak and sham argument, part economic illiteracy and part glaring cynicism, though there is a blurred line with Trump. Granting Trump his boneheaded economics, assuming he’s just a crude real estate operator who does not know the most basic things about international trade, may lend his primitivism a patina of dumb clumsy earnestness. Contrary to Trump’s stubborn ignorance, however, trade deficits are not a mercantilist zero-sum game and tariffs are not a tax on foreign countries. His complementary point that he must be able to impose universal tariffs by fiat whenever he likes without congressional authority, the only president ever to grab power for himself unilaterally under the statute in its 50-year history, because of the non sequitur of fentanyl trafficking, is so ridiculously phoney that it colors his whole case as typically dishonest.Trump’s snap imposition of 50% tariffs on Brazil for its supreme court’s judgment convicting his ally the former president Jair Bolsonaro of an attempted coup and Trump’s additional 10% tariff on Canada in his fit of pique at the Reagan TV ad may only serve to undermine his already tenuous argument that he is compelled to usurp sole power based on the IEEPA in the interest of national security. His tantrums are gifts to the opposing attorney, who may well hold them up as obvious refutations of his claims.In advance of Trump’s date with the court, he has raced around Asia tossing concessions which he hails as victories. Dropping the tariff rates for Japan, South Korea and China, while Beijing lifted its retaliatory threats to withhold rare earth minerals and stop purchasing American soybeans, he has to that extent reduced the harm he alone has been responsible for inflicting.The previously perfectly submissive Republican Congress has begun to crack up in reaction to the stress that Trump’s policies have placed on the rural Republican base. In symbolic votes, five GOP senators joined Democrats to oppose Trump’s tariffs on Brazil and four voted against his tariffs on Canada. The Republicans are in an uproar, following American ranchers, over his approval of importation of more Argentinian beef, apparently as a favor to his rightwing ally Javier Milei, to whom he has also authorized the payment of $20bn in support of the waning Argentinian currency. While Trump has grudgingly acknowledged that he cannot run for a third term, the Republican members of the Congress still have to face the music.The illegality of his tariffs aside, Trump’s retreat reveals the lasting damage he has already done to the US economy, his enhancement of Chinese power and his alienation of our allies, and it exposes his performance as a pantomime strongman on the world stage. Though some of his tariffs will be reduced, even those that remain stand at an unprecedented level in living memory.“Consumers face an overall average effective tariff rate of 17.9%, the highest since 1934,” the Yale Budget Lab reports. For small businesses, which account for one-third of US trade, 78% expect higher costs, and, unable to absorb them, 71% anticipate needing to pass them on as price increases. The Organization of Economic Co-operation and Development projects that as a result of Trump’s tariffs the US Gross Domestic Product growth rate will fall from 2.8% in 2024 to 1.5% in 2026 – a decline of nearly half.Trump’s atavistic return to the Republican protectionism of the 1930s, which deepened the Great Depression, rejects the lessons that Ronald Reagan sought to teach. “The memory of all this occurring back in the 30s made me determined when I came to Washington to spare the American people the protectionist legislation that destroys prosperity,” Reagan, the former New Dealer, said in the speech that enraged Trump enough to punish Canada for reviving it.Reagan’s talk was a prophetic warning of the peril of Trump’s tariffs: “You see, at first, when someone says, ‘Let’s impose tariffs on foreign imports,’ it looks like they’re doing the patriotic thing by protecting American products and jobs. And sometimes for a short while it works – but only for a short time … High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars … Then the worst happens: markets shrink and collapse; businesses and industries shut down; and millions of people lose their jobs.”skip past newsletter promotionafter newsletter promotionTrump’s relationship with Reagan was always uneasy. Throughout the 1980s, he sought Reagan’s imprimatur. In 1983, Reagan was asked to send a congratulatory telegram on the opening of Trump Tower. A few years later, Trump invited the president to attend a LaToya Jackson concert at his Taj Mahal Hotel and Casino at Atlantic City. Several attempts to edge close to Reagan were rejected, according to the Washington Post. The White House counsel’s office wrote “NO” on the telegram request. Offering advice on calling Trump, Reagan’s political director advised, “He has a large ego” – “large” was underlined.Nancy and Ronald Reagan lavished attention on the wealthy, but Trump was apparently too vulgar. It seems not even Trump’s lawyer, Roy Cohn, who was close to Nancy Reagan, could gain him access. Finally, Trump got himself invited to a social event at the White House, stood in the photo line and took a standard picture shaking hands with the president, and received the signed picture. Unfortunately, it was signed from “Reagan Reagan”. A corrected photo was sent, but Trump featured the original image as a token of his significance in The Art of the Deal.In that book, published in 1987, Trump suggested that Reagan was a hollow construct, “so smooth, so effective a performer” that “only now, seven years later, are people beginning to question whether there’s anything beneath that smile”. That year Trump briefly considered his first run for the presidency. He made a foray into New Hampshire and bought full-page ads in the New York Times, Washington Post and Boston Globe scathingly attacking Reagan for weakness. His “Open Letter” stated, “There’s nothing wrong with America’s Foreign Defense Policy that a little backbone can’t cure.” He blamed the federal deficit on our alliances. “Make Japan, Saudi Arabia, and others pay for the protection we extend to allies,” he wrote. “Let’s not let our great country be laughed at anymore.” It was the complaint he would retail for decades regardless of the circumstances. At the bottom, the ads reproduced his squiggly signature, nearly identical to the one on the lewd birthday card to Jeffrey Epstein that he denies he ever wrote. Now, “Reagan Reagan” has returned to haunt him.There’s a twist characteristic of the Trump era. If Trump loses his tariff case, the duties collected from companies will have to be refunded. The Wall Street financial firm of Cantor Fitzgerald reportedly anticipates a market on the rights to the tariff refunds. Its former head Howard Lutnick is the secretary of commerce, and his sons now run the firm. A Cantor Fitzgerald subsidiary is offering 20% to 30% in cash upfront rather than wait for litigation to resolve the claims, according to Wired magazine. In exchange, the company would eventually get the full refund. But if Trump prevails, the claims would be worthless. A spokesperson for Cantor Fitzgerald calls the report “absolutely false”, saying in a statement that it is “not in the business of positioning any risk, taking views or facilitating business in litigation claims involving the legality of US tariffs”.In August, however, the senators Ron Wyden and Elizabeth Warren sent a letter on 13 August to Brandon Lutnick, Cantor Fitzgerald’s CEO, seeking information. “Given that one of the purported architects of President Trump’s tariff policy is Commerce Secretary Howard Lutnick, your father and the former Chairman and CEO of Cantor Fitzgerald, LP, the firm’s actions raise obvious conflict-of-interest and insider dealing concerns.”The senators inquired: “Has anyone at Cantor or Cantor Fitzgerald, LP communicated with any individual representing the Administration’s interest or working on the court cases on these matters? If so, please provide a list of all such conversations, including the date, the individuals involved, and the nature of the conversation.”A spokesperson for the commerce department stated in an email to Wired, “Secretary Lutnick knows nothing about this decision because he has no insight or strategic control over Cantor Fitzgerald.” He remains busy working on Trump’s tariffs. This article was amended on 4 November 2025 to add a response from Cantor Fitzgerald to the Wired report.

      Sidney Blumenthal, former senior adviser to Bill Clinton and Hillary Clinton, has published three books of a projected five-volume political life of Abraham Lincoln: A Self-Made Man, Wrestling With His Angel and All the Powers of Earth. He is a Guardian US columnist More

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      Canadian PM Carney apologises to Trump over anti-tariff Reagan ad run by Ontario premier

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      The Canadian prime minister, Mark Carney, said he had apologised to the US president, Donald Trump, over an anti-tariff political advertisement and had told the Ontario premier, Doug Ford, not to run it.Carney, speaking to reporters on Saturday after attending an Asia-Pacific summit in South Korea, said he had made the apology privately to Trump when they both attended a dinner hosted by South Korea’s president on Wednesday.“I did apologise to the president,” Carney said, confirming comments by Trump made on Friday.Carney also confirmed that he had reviewed the ad with Ford before it aired, but said he had opposed using it.“I told Ford I did not want to go forward with the ad,” he said.The ad, commissioned by Ford, an outspoken Conservative politician who is sometimes compared to Trump, uses a snippet of Republican icon and former president Ronald Reagan saying that tariffs cause trade wars and economic disaster.In response, Trump announced that he was increasing tariffs on goods from Canada, and Washington has also halted trade talks with Canada.When departing South Korea earlier this week, Trump remarked he had a “very nice” conversation with Carney at that dinner, but did not elaborate. On Friday Trump still said the United States and Canada will not restart trade talks.Carney said his talks with the Chinese president, Xi Jinping, on Friday were a turning point in relations after years of tensions.The last formal meeting between the leaders of Canada and China happened in 2017 when the then prime minister Justin Trudeau had a brief exchange with Xi at a meeting in San Francisco.In recent years, Canadian citizens were detained and executed in China, and Canada’s security authorities concluded that China interfered in at least two federal elections.Carney said he had discussed foreign interference with Xi, among other issues.The trip to Asia had been part of efforts to reduce Canada’s reliance on the United States, Carney said.“It can’t happen overnight, but we’re moving very fast,” he said. More

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      Donald Trump says rare earths dispute ‘settled’ after Xi Jinping meeting in South Korea – live updates

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      In case you’re just joining us, here’s a rundown on what happened at the high-stakes talks between Donald Trump and Xi Jinping in South Korea.Trump said afterwards that Washington’s dispute with Beijing over the supply of rare earths had been settled, China would resume buying US soybeans and Washington would reduce its tariffs on China.Trump shook hands with Xi after their talks and boarded Air Force One to return to Washington, saying onboard that the meeting had been a “great success”.He told reporters the Chinese leader had agreed to work “very hard” to prevent the production of the synthetic opioid fentanyl – blamed for many American deaths – and in exchange the US would reduce fentanyl-linked tariffs from 20% to 10%, lowering the overall tariff burden from 57% to 47%.Trump also said he would visit China in April and that Xi would come to the US some time afterwards.In key developments:

      Xi said after the meeting that he and Trump had reached “consensus” on trade issues, Chinese state media reported. Xi said both sides should “finalise follow-up work as soon as possible, maintain and implement the consensus and provide tangible results to set minds at ease about the economies of China, the United States and the world”.

      Trump said they had agreed to work together on Ukraine, adding that the war “came up very strongly” as an issue. “We talked about it for a long time, and we’re both going to work together to see if we can get something.”

      Taiwan was not discussed at the meeting, Trump said. Earlier, both leaders ignored a question about the self-governing democracy, amid concern in Taipei that Trump may be willing to make concessions to Xi.

      Before the meeting at Gimhae airbase in Busan, South Korea – their first face-to-face meeting in six years – Trump and Xi shook hands in front of their countries’ flags and the US president said: “We’re going to have a very successful meeting.” He added: “He’s a tough negotiator – that’s not good,” before patting the Chinese leader on the back.

      Trump had suggested before the meeting – at which their delegations faced each other across a negotiating table – that it could last three or four hours. The two leaders parted after one hour and 40 minutes.

      Xi said China and the US should “stay on the right course” and “be partners and friends” and should “work together to accomplish more great and concrete things for the good of our two countries and the whole world”.

      The optimism in Busan was in stark contrast to the recent exchanges of aggressive rhetoric over trade that had threatened to set the US and Chinese on an economic collision course, with potentially disastrous consequences globally. China’s yuan retreated from a near one-year high against the dollar on Thursday after the meeting met expectations but gave investors few new reasons for trade optimism.

      Minutes before meeting Xi, Trump said in a social media post that he had ordered the Pentagon to start nuclear weapons testingat the same level of China and Russia. He did not respond to a reporter’s question about the decision as he and Xi began their summit.With Justin McCurry and agencies
      Donald Trump has used his Truth Social platform to declare the trade tensions with China are “very close to being resolved” as he urges US farmers to go out and buy “more land and bigger tractors” as Beijing ends its soya bean embargo.The US exports about £18bn worth of soya bean a year, half of which goes to China, but China stopped buying the product leaving Trump contemplating a multi-billion dollar bailout for farmers.Trump said on Truth Social:
      I had a truly great meeting with President Xi of China. There is enormous respect between our two Countries, and that will only be enhanced with what just took place.
      We agreed on many things, with others, even of high importance, being very close to resolved. I was extremely honored by the fact that President Xi authorized China to begin the purchase of massive amounts of Soybeans, Sorghum, and other Farm products.
      Our Farmers will be very happy! In fact, as I said once before during my first Administration, Farmers should immediately go out and buy more land and larger tractors.
      The deal covers Fentanyl, rare earths and critical minerals such as refined lithium used in electric vehicle car batteries – a sector in which China dominates the world.China has also agreed to liberalise the sale of magnets used in everything from dishwasher doors to car window openings, he said.It will also buy oil and gas from Alaska, Trump added.Donald Trump had first laid out his intention to pursue nuclear arms control efforts in February, saying he wanted to begin discussions with both Vladimir Putin and Xi Jinping about imposing limits on their arsenals, reports Reuters.Most major nuclear powers except North Korea stopped explosive nuclear testing in the 1990s. North Korea conducted its last nuclear test in 2017. Russia’s last confirmed test was in 1990, followed by the last US test in 1992, and by China’s in 1996.The reaction to Donald Trump’s announcement on nuclear testing was swift in the US also.Representative Dina Titus, a Democrat from Nevada, said on X:
      I’ll be introducing legislation to put a stop to this.
      Daryl Kimball, director of the Arms Control Association, said it would take the US at least 36 months to resume contained nuclear tests underground at the former test site in Nevada. Kimball said on X:
      Trump is misinformed and out of touch. The US has no technical, military, or political reason to resume nuclear explosive testing for the first time since 1992.
      Apart from providing technical data, a US test would be seen in Russia and China as a deliberate assertion of Washington’s strategic power. Russian president Vladimir Putin has repeatedly said that Russia will test if the US does.In August, Trump said he had discussed nuclear arms control with Putin and wanted China to get involved. Beijing responded by saying it was “unreasonable and unrealistic” to ask the country to join in nuclear disarmament negotiations with the two countries, since its arsenal was much smaller.Reuters has some reaction to Donald Trump’s post on Truth Social about the US defence department to immediately begin nuclear testing on a par with Russia and China’s testing (see 1.49am GMT)A senior Russian lawmaker said Trump’s decision would herald a new era of unpredictability and open confrontation, state news agency RIA reported, while China’s foreign ministry called for the US to abide by its commitment to a moratorium on nuclear testing and uphold the global strategic balance and stability.It was not immediately clear whether Trump was referring to nuclear-explosive testing, which would be carried out by the National Nuclear Security Administration (NNSA), or flight testing of nuclear-capable missiles. No nuclear power, other than North Korea, has carried out explosive testing in more than 25 years.Russian senator Vladimir Dzhabarov said on Thursday that US president Donald Trump should negotiate with Russia, rather than imposing sanctions on it, state news agency RIA cited him as saying.US president Donald Trump said on Thursday he has given South Korea approval to build a nuclear-powered submarine, a dramatic move that would admit Seoul to a small club of nations possessing such vessels.The submarine will be built in a Philadelphia shipyard, where South Korean firms have increased investment, Trump wrote on social media.Trump wrote on his Truth Social platform:I have given them approval to build a Nuclear Powered Submarine, rather than the old fashioned, and far less nimble, diesel powered Submarines that they have now.The US president, who met South Korean president Lee Jae Myung and other regional leaders during his visit, also said Seoul had agreed to buy vast quantities of US oil and gas.Trump and Lee finalised details of a fraught trade deal at a summit in South Korea on Wednesday. Lee had also been seeking US permission for South Korea to reprocess nuclear fuel.However, South Korea’s industry ministry said its officials had not been involved in any detailed discussions about building the submarines in Philadelphia.While South Korea has a sophisticated shipbuilding industry, Trump did not spell out where the propulsion technology would come from for a nuclear-powered submarine, which only a handful of countries currently possess.One opposition lawmaker said on Thursday the Philadelphia shipyard does not have facilities to build submarines, reports Reuters.Asked about Trump’s submarine announcement, Hanwha Ocean, which owns the shipyard with another Hanwha affiliate, said it was ready to cooperate with both countries and provide support with advanced technology, but did not mention specifics.Defence minister Ahn Gyu-back told lawmakers that plans called for South Korea to build its own submarins and modular reactors, and receive a supply of enriched uranium fuel from the US.US president Donald Trump said on Thursday that China agreed to begin the process of purchasing US energy.Trump said in a Truth Social post:
      China also agreed that they will begin the process of purchasing American Energy. In fact, a very large scale transaction may take place concerning the purchase of Oil and Gas from the Great State of Alaska. Chris Wright, Doug Burgum, and our respective Energy teams will be meeting to see if such an Energy Deal can be worked out.
      Chinese state media reported shortly after the meeting that the US and China had reached a “consensus” on trade, but the language was a little vague.We’ve now had more information which confirms the consensus Xi referred to in the meeting was actually developed by the US and China trade negotiation teams which met last Sunday in Kuala Lumpur. After that meeting we were told they had developed a “framework” for trade deals, including the forthcoming sale of TikTok.A short time ago, China’s commerce ministry told reporters that consensus included:

      The US will remove the 10% fentanyl tariff on goods from mainland China, Hong Kong and Macao, and will extend its suspension of a 24% equitable tariff for another year. In return China will “adjust its countermeasures against the aforementioned US tariffs accordingly”. Both sides also agreed to extend certain tariff exclusions.

      The US will suspend its 50% penetration rule on export controls, and in return China will suspend its own export control measures – understood to be its ban on sales of rare earths to foreign countries for suspected dual-use purposes.

      The US will suspend for one year its Section 301 (harmful trade practises) investigations against China’s maritime, logistics, and shipbuilding industries for one year. In return China will suspend its related countermeasures.
      The ministry said the two sides also reached agreement on issues including fentanyl control, the expansion of agricultural trade, and “handling individual cases involving relevant companies”, which could refer to trade blacklists or investigations against US or American firms based in the other country.“Both sides further affirmed the outcomes of the Madrid trade consultations, with the US side making positive commitments in areas such as investment, and China agreeing to work with the US to properly resolve issues related to TikTok.”Additional research by Lillian YangChina’s defence ministry has said Beijing maintains an open attitude towards developing military relations with the US.Zhang Xiaogang, a spokesperson for the defence ministry, told a press briefing that China hopes the US will work with them to jointly build equal, just, peaceful and stable military ties.Oil prices have fallen slightly as investors digest the new trade deal between Trump and Xi.The two world leaders met in South Korea this morning, with Trump agreeing to reduce tariffs on China from 57% to 47% in a one-year deal, in exchange for Beijing resuming purchases of US soybeans, the continuation of rare earth exports and a crackdown on the trade of fentanyl.Brent crude futures dropped by 0.31% to $64.72 a barrel this morning, while US West Texas Intermediate crude futures dropped by 0.33% to $60.28.The drops suggest that some investors are sceptical that the new agreement marks an end to the trade war. But president Trump has said his discussions with Xi were “fantastic”, and emphasised their “great relationship”.You can follow more market reaction to the meeting in our business live blog:Earlier we reported that Donald Trump said he would visit China next year.A Chinese foreign ministry spokesperson has now confirmed that, saying the trip has been scheduled for April.In case you’re just joining us, here’s a rundown on what happened at the high-stakes talks between Donald Trump and Xi Jinping in South Korea.Trump said afterwards that Washington’s dispute with Beijing over the supply of rare earths had been settled, China would resume buying US soybeans and Washington would reduce its tariffs on China.Trump shook hands with Xi after their talks and boarded Air Force One to return to Washington, saying onboard that the meeting had been a “great success”.He told reporters the Chinese leader had agreed to work “very hard” to prevent the production of the synthetic opioid fentanyl – blamed for many American deaths – and in exchange the US would reduce fentanyl-linked tariffs from 20% to 10%, lowering the overall tariff burden from 57% to 47%.Trump also said he would visit China in April and that Xi would come to the US some time afterwards.In key developments:

      Xi said after the meeting that he and Trump had reached “consensus” on trade issues, Chinese state media reported. Xi said both sides should “finalise follow-up work as soon as possible, maintain and implement the consensus and provide tangible results to set minds at ease about the economies of China, the United States and the world”.

      Trump said they had agreed to work together on Ukraine, adding that the war “came up very strongly” as an issue. “We talked about it for a long time, and we’re both going to work together to see if we can get something.”

      Taiwan was not discussed at the meeting, Trump said. Earlier, both leaders ignored a question about the self-governing democracy, amid concern in Taipei that Trump may be willing to make concessions to Xi.

      Before the meeting at Gimhae airbase in Busan, South Korea – their first face-to-face meeting in six years – Trump and Xi shook hands in front of their countries’ flags and the US president said: “We’re going to have a very successful meeting.” He added: “He’s a tough negotiator – that’s not good,” before patting the Chinese leader on the back.

      Trump had suggested before the meeting – at which their delegations faced each other across a negotiating table – that it could last three or four hours. The two leaders parted after one hour and 40 minutes.

      Xi said China and the US should “stay on the right course” and “be partners and friends” and should “work together to accomplish more great and concrete things for the good of our two countries and the whole world”.

      The optimism in Busan was in stark contrast to the recent exchanges of aggressive rhetoric over trade that had threatened to set the US and Chinese on an economic collision course, with potentially disastrous consequences globally. China’s yuan retreated from a near one-year high against the dollar on Thursday after the meeting met expectations but gave investors few new reasons for trade optimism.

      Minutes before meeting Xi, Trump said in a social media post that he had ordered the Pentagon to start nuclear weapons testingat the same level of China and Russia. He did not respond to a reporter’s question about the decision as he and Xi began their summit.With Justin McCurry and agencies
      On his Truth Social account before the meeting, Trump had described the Busan catch-up as the “G2”, a nod to the US and China being the world’s biggest economies and a play on the names of other formal multilateral groupings like the G7 and G20.Even though it’s not an official name, “G2” has been welcomed by some Chinese people online.“Clearly, the core of the global order is the US-China relationship”, said one popular post on Weibo.Another said:
      Americans’ attitudes are shifting quickly; they are gradually adapting to the idea that the US and China are starting to stand on equal footing, and the world is big enough to accommodate a G2.
      With Lillian Yang More

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      Trump raises tariffs on Canada by 10% in retaliation for anti-tariff TV ad

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      Donald Trump announced on Saturday that he will raise US tariffs on Canada by 10% in retaliation for an anti-tariff advertisement sponsored by the Ontario government, which has further strained one of the world’s largest trade partnerships.The statement, posted on Trump’s Truth Social account, came after several days of public disputes over the ad, which referenced Ronald Reagan’s support for free trade and provoked the US president’s anger.“Because of their serious misrepresentation of the facts, and hostile act, I am increasing the Tariff on Canada by 10% over and above what they are paying now,” Trump said Saturday on social media.He further accused the ad of being a “fraud” and said the “sole purpose” of it was “Canada’s hope that the United States Supreme Court will come to their ‘rescue’ on Tariffs that they have used for years to hurt the United States”, he added.“Now the United States is able to defend itself against high and overbearing Canadian Tariffs (and those from the rest of the World as well!),” the president wrote.Ontario premier Doug Ford said Friday that the province will suspend its US ad campaign on Monday, after discussions with prime minister Mark Carney, in an effort to reopen trade negotiations.The ad, which was paid for by the government of the Canadian province of Ontario, uses excerpts of a 1987 speech where Reagan says “trade barriers hurt every American worker”.View image in fullscreenThe ad aired Friday during the broadcast for Game 1 of Major League Baseball’s World Series, in which the Toronto Blue Jays faced off against the Los Angeles Dodgers.“Their Advertisement was to be taken down, IMMEDIATELY, but they let it run last night during the World Series, knowing that it was a FRAUD,” Trump posted.Trump had previously terminated trade talks with Canada due to the ad.It was not immediately clear what goods would be affected by Trump’s announcement. The majority of Canadian exports to the US are exempt from tariffs because of the United States-Mexico-Canada Agreement (USMCA) that was signed during Trump’s first term.skip past newsletter promotionafter newsletter promotionThe Trump administration in August imposed a 35% tariff on Canadian goods not covered by the USMCA. Canada’s economy has suffered from sector tariffs of 50% imposed this year by Trump on steel and aluminium from all countries.Candace Laing, president of the Canadian chamber of commerce, said: “tariffs at any level remain a tax on America first, then North American competitiveness as a whole. We hope this threat of escalation can be resolved through diplomatic channels and further negotiation. CUSMA [the Canada–United States–Mexico Agreement] means a North America where businesses do better. A successful free trade zone is fundamental for both our economies.”The Ronald Reagan Presidential Foundation & Institute, a non-profit organization that works to advance his legacy and principles, wrote in a post on X that Ontario did not seek or receive permission to use the clips.The foundation said in a statement that the advert used “selective audio and video” and “misrepresents” Reagan’s comments. It said it was “reviewing its legal options”, which Trump cited in his Truth Social post.Carney on Friday said Canada stood ready to resume trade talks with the US. Trump and Carney will both be at the Association of Southeast Asian Nations (Asean) summit in Malaysia, but the president told reporters on Air Force One he has no plans to meet with the Canadian leader.The Canadian prime minister had previously removed most of Canada’s retaliatory tariffs on US imports imposed by his predecessor, but White House adviser Kevin Hassett said on Friday that Trump was frustrated with Canada and trade talks have not been going well. More

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      US and Canada spar over ad of Reagan denouncing tariffs that led to derailed trade talks

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      After the US suspended all trade negotiations with Canada over a 1987 speech by Ronald Reagan denouncing tariffs that appeared to spark Donald Trump’s ire, the premier of Ontario said he planned to run an ad featuring the speech again during the World Series on Friday.Doug Ford, whose government ran the Reagan ad in US markets this week, first posted on X that the two nations were “stronger together”, while Trump added his own string of social media posts trumpeting the supposed benefits of tariffs.“Canada and the United States are friends, neighbours and allies. President Ronald Reagan knew that we are stronger together,” Ford wrote on X alongside the Reagan video. “God bless Canada and God bless the United States.”Ford said the ad will run during the first game of the World Series, but, after speaking with Canadian prime minister Mark Carney, Ford announced the campaign will end Monday.“Our intention was always to initiate a conversation about the kind of economy that Americans want to build and the impact of tariffs on workers and businesses,” Ford said. “We’ve achieved our goal, having reached US audiences at the highest levels.”The quick breakdown in relationships apparently stems from a one-minute television advertisement featuring Reagan’s radio address declaring that “trade barriers hurt every American worker”.Trump responded on Truth Social without evidence that Canada had somehow run a “fraudulent” and “fake” advertisement, and announced that “all trade negotiations with Canada are hereby terminated”.Rubio, the secretary of state, told reporters on Friday that Ford had aired commercials in the US which “took President Reagan’s words out of context”, adding that the Reagan Foundation had criticized the effort, too. “The President made his announcement that he suspended any trade talks with Canada for now,” Rubio said.The Reagan Foundation said on Thursday that the Ontario government’s advertisement “misrepresents” Reagan’s address, without elaborating how. It added that officials “did not seek nor receive permission to use and edit the remarks” and added that the organization was reviewing its legal options.It also encouraged people to watch the video of Reagan’s speech on its YouTube channel.Ford’s office responded by reposting the longer, five-minute excerpt, and said that the commercial uses “an unedited excerpt from one of Reagan’s public addresses, which is available through public domain”.Democratic lawmakers on the House ways and means committee jumped in to defend the Ontario advertisement. “This is the ad that drove Trump to cancel all trade talks with Canada,” the committee posted on social media. “Unlike Trump’s AI slop, this is real and uses Reagan’s own words on tariffs.”The dispute comes as both countries face critical deadlines in the next few weeks. Next week marks the cutoff for public comments on the scheduled review of the United States-Mexico-Canada Agreement, which faces its mandatory six-year assessment in July 2026. The following day, 4 November, Carney, will deliver a federal budget expected to focus on reducing reliance on US markets.Then on 5 November the US supreme court will hear constitutional challenges to Trump’s authority to impose tariffs under emergency powers. A federal appeals court ruled in August that such sweeping duties exceed presidential authority, potentially undermining the legal foundation for the 35% tariffs now applied to Canadian steel, aluminum, timber and automobiles.Chris Sands, the director of the Center for Canadian Studies at Johns Hopkins School of Advanced International Studies, suggested the collapse in talks simply formalizes a dead-end process.“Can we stop trade talks? Yes, you can stop talks about steel, aluminum, energy, all of it,” he said.“But there was no evidence we were going anywhere anyway.”Sands noted the irony of Trump citing Reagan while reversing his trade legacy. “Reagan loved the country – he loved free trade. Maybe Donald Trump believes that, but it’s not what he’s selling now.”Washington imposed 25% tariffs on Canadian imports this spring, prompting retaliation from Ottawa before Trump raised duties to 35% in August. Ontario, heavily dependent on cross-border manufacturing and automotive trade, has been particularly affected. The breakdown ultimately leaves Carney navigating domestic pressure with a minority government.“Carney’s trying to keep all the provinces together,” Sands said. “He’s walking a tightrope between angry Canadians, an angry Trump, and premiers who are going off-script.”Before departing for Asia on Friday morning, Carney acknowledged the changed reality. “We can’t control the trade policy of the United States,” he told reporters, noting that US policy had fundamentally shifted from previous decades.But he emphasized Canada’s readiness to resume detailed negotiations on steel, aluminum and energy sectors, “when the Americans are ready to have those discussions, because it will be for the benefit of workers in the United States, workers in Canada and families in both of our countries.”For now, Carney said, Canada will focus on what it can control: building at home and “developing new partnerships and opportunities, including with the economic giants of Asia”. More

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      Markets rebound amid latest US-China tariff spat as traders look to possible ‘Taco trade’

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      European stock markets have edged higher and cryptocurrencies rebounded amid signs that a new front in the US-China trade war may not be a severe as first feared.Tensions between Washington and Beijing escalated again on Friday and over the weekend, as Donald Trump threatened to impose additional US tariffs of 100% on China starting next month.The US president accused the country of “very hostile” moves to restrict exports of rare-earth minerals needed for American industry. Beijing said it would retaliate if Trump does not back down.However, Trump and senior US officials opened a door to a possible deal with China on Sunday. The president wrote on Truth Social: “Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!”The comments have offered some comfort for investors in Europe, with stocks opening mostly higher on Monday. The UK’s blue-chip FTSE 100 index rose by 0.2% in early trading, while markets in France, Spain, Germany were all up by about 0.5%.Most big cryptocurrencies rebounded after a deep sell-off over the weekend. Bitcoin edged up by 0.3% to more than $115,000, after falling below $105,000 on Friday. Ether had dropped to less than $3,500 but rebounded to about $4,100.Richard Hunter, of the broker Interactive Investor, said investors were hoping for a “Taco trade”, which is the idea that markets rally because “Trump Always Chickens Out” (Taco) of aggressive tariff decisions.“The president’s propensity to shoot from the hip unsettles the investment environment, even though some are already speculating that the Taco trade is alive and well,” he said.However, a heightened sense of uncertainty is pushing investors to gold, which is considered a safe haven asset. Its spot price hit another new high on Monday, rising to as high as $4,078.5 an ounce.Derren Nathan, of the broker Hargreaves Lansdown, noted that US stock futures suggested that there could be “at least a partial rebound” when the market opens later on Monday.“Traders may be banking on a similar pattern where American indexes entered a six-month period of almost unbroken growth helped by a string of trade deals, and growing hopes of a soft-landing for the US economy,” he said.skip past newsletter promotionafter newsletter promotionShares in Anglo-Swedish pharmaceutical firm AstraZeneca – which made a deal with Trump to lower drug prices and avoid tariffs over the weekend – initially rose on Monday morning, before falling back by 0.4%.Fears were still running high in Asia, with main markets tumbling on Monday. Hong Kong’s Hang Seng index dropped by 2.3%, while the Taiwanese market fell by 1.4% and the Thai exchange declined by 2%. In mainland China, the Shenzhen exchange fell by 1.4% and the Shanghai market slipped 0.4%.On Monday, Chinese foreign ministry spokesperson Lin Jian urged the US to promptly correct its “wrong practices” and said it would act to safeguard its interests.Despite the trade tensions, Chinese exports bounced back in September, topping forecasts as it diversified its markets.Chinese exports rose by 8.3% year on year last month, according to official customs data. This was the fastest growth since March, and beat a 6% increase forecast by economists polled by Reuters. It comes after a 4.4% increase in August. More