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    Brazil’s president seeks ‘indestructible’ links with China amid Trump trade war

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    The Brazilian president, Luiz Inácio Lula da Silva, has heralded his desire to build “indestructible” relations with China, as the leaders of three of Latin America’s biggest economies flew to Beijing against the backdrop of Donald Trump’s trade war and the profound international uncertainty his presidency has generated.Lula touched down in China’s capital on Sunday for a four-day state visit, accompanied by 11 ministers, top politicians and a delegation of more than 150 business leaders.Hours later Colombia’s president, Gustavo Petro, arrived, making a beeline for the Great Wall of China and declaring his desire for the South American country to not “only look one way” towards the US. “We have decided to take a profound step forward between China and Latin America,” Petro said.Chile’s Gabriel Boric has also travelled to Beijing to attend Tuesday’s meeting between members of the Community of Latin American and Caribbean States (Celac) and Chinese representatives.Addressing hundreds of Chinese and Brazilian business chiefs in the Chinese capital on Monday, Lula hit out at Trump’s tariffs, saying he could not accept the measures “that the president of the US tried to impose on planet Earth, from one day to the next”.The Brazilian leftist said he hoped to build an “indispensable” relationship with China – already Brazil’s top trading partner – and heaped praise on his Communist party hosts as his officials announced $4.6bn (£3.5bn) of Chinese investment in their country. On Tuesday, Lula is scheduled to meet China’s leader, Xi Jinping, who is expected to return the visit in July, when Xi travels to the Brics summit in Rio.“China has often been treated as though it were an enemy of global trade when actually China is behaving like an example of a country that is trying to do business with countries which, over the past 30 years, were forgotten by many other countries,” said Lula, who is expected to seek major Chinese investments in Brazilian infrastructure projects.The visit of the three South American leaders to China underlines the east Asian country’s rapidly growing footprint in a region where, over the past 25 years, it has become a voracious consumer of commodities such as soybeans, iron ore and copper. Chinese companies have also poured into the region. Electric cars made by the Chinese manufacturer BYD can be seen cruising the streets of Brazilian cities, from Brasília to Boa Vista, deep in the Amazon.The visits also come amid global jitters over Trump’s volatile presidency and Latin American anxiety and suspicion over the US president’s plans for a region where he has threatened to “take back” the Panama canal – by force if necessary.Matias Spektor, an international relations professor at the Getúlio Vargas Foundation, a Brazilian thinktank and university, said the presence of the three South American presidents in Beijing underscored how, in the Trump era, with the US in retreat, such leaders were increasingly reaching out to other parts of the world.“It tells us that countries around the world are willing to go out … to exploit all the opportunities that are there in the international system – and there are many. Because, as America turns away from free trade and as America adopts a policy that is … instead of transactional, predatory – countries have an incentive to engage with those who are transactional,” Spektor said, pointing to recent trips Lula made to Japan and Vietnam.“[Lula] is very proactively trying to open trade for Brazil at a time when America is undoing the previous rules of the game, and the new rules of the game are not yet born … These [Latin American] countries want to shape the norms that are likely to emerge now. And those rules are not going to emerge in Washington DC. They are going to be made globally,” Spektor added.Spektor said Latin American leaders such as Lula had long considered the world a multipolar place. “What happened on 20 January [with Trump’s return to power] is that the barrage of policy change coming from Washington DC has accelerated the belief that was already in place that the axis of global power has for a while been moving towards the east, and somewhat towards the south.” More

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      For the U.S. and China, the Only Talking Is About Whether to Talk

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      The standoff over terms of negotiations, and whether they are happening, signals that a protracted economic fight lies ahead.As trade tensions flared between the world’s largest economies, communication between the United States and China has been so shaky that the two superpowers cannot even agree on whether they are talking at all.At a White House economic briefing this week, Treasury Secretary Scott Bessent demurred multiple times when pressed about President Trump’s recent claim that President Xi Jinping of China had called him. Although top economic officials might usually be aware of such high-level talks, Mr. Bessent insisted that he was not logging the president’s calls.“I have a lot of jobs around the White House; running the switchboard isn’t one of them,” Mr. Bessent joked.But the apparent silence between the United States and China is a serious matter for the global economy.Markets are fixated on the mystery of whether back-channel discussions are taking place. Although the two countries have not severed all ties, it does seem that they have gone dark when it comes to conversations about tariffs.“China and the U.S. have not held consultations or negotiations on the issue of tariffs,” Guo Jiakun, a spokesman for China’s foreign ministry, said at a news conference last Friday. “The United States should not confuse the public.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump 100 days: ‘unpredictable’ US alienates allies and disrupts global trade

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      For US foreign policy, Donald Trump’s first 100 days in office were the weeks when decades happened.In just over three months, the US president has frayed alliances that stood since the second world war and alienated the US’s closest friends, cut off aid to Ukrainians on the frontlines against Vladimir Putin, emboldened US rivals around the world, brokered and then lost a crucial ceasefire in Gaza, launched strikes on the Houthis in Yemen and seesawed on key foreign policy and economic questions to the point where the US has been termed the “unpredictable ally”.The tariffs Trump has unleashed will, if effected, disrupt global trade and lead to supply chain shocks in the United States, with China’s Xi Jinping seeking to recruit US trade allies in the region.The pace of the developments in the past 100 days makes them difficult to list. Operating mainly through executive action, the Trump administration has affected nearly all facets of US foreign policy: from military might to soft power, from trade to immigration, reimagining the US’s place in the world according to an isolationist America First program.“The shake-up has been revolutionary, extraordinary. It’s upended 80-some years of American foreign policy,” said Ivo Daalder, president of the Chicago Council on Global Affairs and a former ambassador to Nato.The Trump presidency has ended the relative peace in the western hemisphere since the end of the second world war underwritten by US economic, military and diplomatic influence, Daalder said.“The foundation of the Pax Americana was trust, and once you break trust, it’s extraordinarily difficult to restore,” he said. “And restoring trust – trust in America, trust in American institutions, trust in American voters – it takes a long time to rebuild.”The US’s key foreign policy and national security making institutions are in crisis. The Pentagon is mid-meltdown under the leadership of Pete Hegseth, whose erratic and unsteady leadership has been reflected in score-settling among his senior staff, while a leaked Signal chat embroiled the national security adviser, Mike Waltz, and others in scandal. The state department under Marco Rubio is undergoing a vast shake-up, and the US’s diplomats are being sidelined in favour of envoys such as Steve Witkoff with little background in foreign policy. Critics say the gutting of USAID will cut back on US soft power for generations.“There’s no better way to get us into a war, perhaps a catastrophic war, than essentially poking out your eyes and numbing your brain, and you’re left with Donald Trump and a few people sitting in the White House winging it, and they’re not competent to wing it,” said Steven Cash, a former intelligence officer for the CIA and Department of Homeland Security, and the executive director of the Steady State, an advocacy group of former national security professionals. “And so we’ve seen that with the tariffs. We’ve seen that with Nato. We’ve seen that with Ukraine, and we’re gonna see a lot more of it.”After assuming office in 2021, Joe Biden declared: “America is back.”“The world now knows America is not back,” Daalder said. “America is gone again.”In a recent interview with the Zeit newspaper, Ursula von der Leyen, president of the European Commission, expressed similar sentiments, saying: “The west as we knew it no longer exists.”View image in fullscreenIn Munich, JD Vance delivered a landmark speech openly pandering to Europe’s far right, accusing European leaders of “running from their own voters” and saying: “America can do nothing to help you.”A backlash has begun. Last month the EU presented an €800bn ($913bn) plan on the future of European defense, a putative step in what would be a herculean task to overcome internal divisions and onshore European defense manufacturing. The UK and other US allies have considered other efforts, such as limiting intelligence-sharing with the US. “We still need America now, but there is a vision [of a time] when we won’t any more,” said one European diplomat.Meanwhile, the Trump effect is beginning to sway elections as well – though not as he might hope.In the western hemisphere, Trump has terrorised US neighbours and tacitly declared what some have compared to a new Monroe doctrine, saying the White House planned to “take back” the Panama canal and annex Greenland, while regularly calling Canada the future 51st state.In an extraordinary bit of election-day meddling, Trump wrote a social media post suggesting that he was on the ballot in Canada’s vote, repeating that Canada should become the 51st state in order to avoid tariffs and reap economic awards.Canadians responded by duly electing the liberal candidate Mark Carney, completing a 30% swing in polling that has largely been explained by opposition to Trump’s tariff war and territorial menaces.In Europe, populist parties seen as Trump’s ideological allies are also on the defensive. While Trump was popular in terms of his ideological and anti-woke agenda, the trade war has made him “quite toxic, just in the last month or two, with a lot of the populist voting bases”, said Jeremy Shapiro, the research director of the European Council on Foreign Relations and a former special adviser to the assistant secretary of state for Europe and Eurasia.Nowhere has the shift in US foreign policy been felt more acutely than in Ukraine, where the sudden cutoff in US military and intelligence sharing confirmed the Trump administration’s goals of pressuring Ukraine to accept a deal with the Kremlin, rather than the other way around. Those frustrations boiled over into an Oval Office meltdown fueled by Vice-President JD Vance that one former US official close to the talks called “disgraceful”.Trump has swung wildly on the war, on certain days targeting Volodymyr Zelenskyy as a “dictator” and then quickly pivoting to call out Putin for continuing to rain down missiles on Ukrainian cities. His theatrics have produced symbolic moments, including a sudden recognition that “maybe [Putin] doesn’t want to stop the war” after speaking with Zelenskyy this weekend in the baptistry of St Peter’s Basilica. But in terms of hard results, Trump has not fulfilled a promise to end the war within 24 hours or produced a clear path to peace many months later.View image in fullscreenThe Russians have said they largely tune out what he says in public.“We hear many things coming from President Trump,” said Sergey Lavrov, the Russian foreign minister, during a television appearance this weekend. “We concentrate, as I said, on the real negotiations which President Trump supports and instructed his people to continue to engage in these negotiations.”Key among those people is Witkoff, a neophyte diplomat who has spent hours in conversation with Putin, often with no other adviser present. One person close to the Kremlin said that Witkoff was viewed as a reliable negotiator in Moscow with “a chance to make an agreement”, but added: “There is a chance it will pass by.”Much of the burden of international diplomacy now rests on Witkoff, who is also running point on other key negotiations. Trump has tasked him with reaching a deal to prevent Iran from obtaining a nuclear weapon, in effect renegotiating the Joint Comprehensive Plan of Action that he scuttled in 2018. Both the US and Iran have played up the talks, although “differences still exist both on major issues and on the details”, the Iranian foreign minister, Abbas Araghchi, told state television this week.And then there is the Middle East, where the Trump administration scored its greatest early success by negotiating a ceasefire in Gaza but then failed to prevent its collapse, with Israel cutting off new aid to Gaza as the fighting continues.“There now seems to be less focus on ending the devastating conflict,” wrote Stefanie Hausheer Ali, a non-resident fellow at the Atlantic Council’s Rafik Hariri Center and Middle East Programs. “Trump’s threat in February to Hamas to release the hostages or ‘all hell is going to break out’ has, in practice, meant Israel restarting the war and blocking humanitarian aid from entering Gaza. Without an alternative to Hamas rule, the militant group may hang on and continue to fight as an insurgency, replenishing its ranks by recruiting desperate people.”Trump’s most extreme remarks have turned out to be bluster: he stunned the world when he claimed that he would turn the Gaza Strip into beachfront condos and said that the local Palestinian population would be forcibly removed. Months later, the initiative is largely forgotten.While attempting to close three landmark negotiations at once, the Trump administration has also launched a trade war with the entire world, establishing sweeping tariffs on all foreign imports before abruptly reversing course and cutting tariffs to 10% save for those against China.With so many major efforts ongoing, observers say that the government is largely paralysed to deal with smaller but still crucial issues in foreign policy and national security. As part of a blanket ban on refugees, tens of thousands of Afghans who assisted US troops against the Taliban are left waiting for relocation to the United States, a promise that was extended by previous administrations.“The lack of clarity and the chaos are the things that are causing so much pain,” said Shawn VanDiver, the founder and president of #AfghanEvac, a group that works with the state department to help resettle Afghans.He said he was critical of both the Biden and Trump administrations for failing to relocate the tens of thousands of Afghans who were far enough along in the vetting program to be relocated before Trump came into office.“The truth is, is that when America makes a promise, you should be able to trust our word,” he said. “If our flag waving over an embassy in Tunisia or Baghdad or Kabul, or Kyiv doesn’t mean this is the place where there’s truth, where there’s justice … well, then what are we even doing here?” More

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      US treasury secretary says ‘there is a path’ with China over tariff negotiations

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      The US treasury secretary, Scott Bessent, said “there is a path” to an agreement with China over tariffs after he had interactions with his Chinese counterparts last week in Washington.“I had interaction with my Chinese counterparts, but it was more on the traditional things like financial stability, global economic early warnings,” Bessent told ABC News’s This Week on Sunday, explaining that he had spoken to the Chinese during International Monetary Fund meetings in Washington. “I don’t know if President Trump has spoken with President Xi,” he added.On Friday, Donald Trump asserted in an interview that tariff negotiations were under way with China, comments he repeated on his way to Rome to attend the funeral of Pope Francis, but were later denied by China’s foreign ministry, which said the US “should stop creating confusion”.A day later, China’s foreign minister, Wang Yi, said Beijing abides by international rules on US-imposed tariffs and would seek solidarity with other countries.“Certain countries adhere to their own priorities, engage in bullying pressure and coercive transactions, and provoke trade wars for no reason, exposing their extreme egoism,” Wang said on the sidelines of a regional meeting in Kazakhstan.On Sunday, Bessent attempted to weave through the conflicting signals over what progress was being made to de-escalate a trade war threatening to sap global growth.“The Chinese will see this high tariff level is unsustainable for their business,” he said. He added that Beijing’s denial that negotiations are ongoing was for a Chinese audience.“I think they’re playing to a different audience,” Bessent said. “We have a process in place and, again, I just believe these Chinese tariffs are unsustainable.“The first path will be, again, a de-escalation, which I think the Chinese are going to have to have. Then I think there can be an agreement in principle, these 17 or 18 important trade deals that we’re negotiating.”But Bessent warned that “a trade deal can take months” and said negotiations with other significant US trading partners were progressing. “Some of those are moving along very well, especially the – with the Asian countries,” he said, praising Trump’s negotiating strategy.“In game theory it’s called strategic uncertainty,” he said. “So, you’re not going to tell the person on the other side of the negotiation where you’re going to end up. And nobody’s better at creating this leverage than President Trump.”The treasury secretary’s comments come as top US retailers have reportedly warned the White House that tariffs will cause empty store shelves and price hikes within weeks.Bloomberg reported that Chinese fast-fashion giant Shein raised US prices of its products from dresses to kitchenware on Friday ahead of imminent tariffs on small parcels. The average price for the top 100 products in the beauty and health category increased by 51%, and more than 30% for home and kitchen products and toys, including a 377% increase in the price of a 10-piece set of kitchen towels.Trump predicted on Sunday that tariffs would ultimately benefit US taxpayers and boost employment. “When Tariffs cut in, many people’s Income Taxes will be substantially reduced, maybe even completely eliminated,” Trump wrote in a Truth Social post.“Focus will be on people making less than $200,000 a year. Also, massive numbers of jobs are already being created, with new plants and factories currently being built or planned.” He called it a “bonanza” for Americans and said “the external service is happening”.Separately on Sunday, US agriculture secretary Brooke Rollins said the US was holding daily conversations with China over tariffs. “Every day we are in conversation with China, along with those other 99, 100 countries that have come to the table,” Rollins said on CNN’s State of the Union.Rollins said the president was prepared to bail out American farmers if the trade war continues squeezing commodity exports, particularly soybean and pork sales to China.“First of all, the prayer is that that doesn’t need to happen – but secondly, if it does, for the short term, just as in Trump 1, we are preparing for that,” Rollins said.Rollins said it could take months before it is known whether a bail-out is needed.“I don’t think we’re going to need it, but if we do, it will be there,” Rollins said. More

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      China Rejects Trump Claim of Tariff Talks With Xi

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      President Trump said “we’re meeting with China” on tariffs, comments aimed at soothing jittery financial markets. But Chinese officials say no talks have taken place.President Trump, whose trade war with China has rattled financial markets and threatened to disrupt huge swaths of trade, suggested on Friday that he has been in touch with Xi Jinping, China’s president, even as officials in China insist that no negotiations are occurring.In an interview with Time, Mr. Trump said Mr. Xi had called him and asserted that his team was in active talks with the Chinese on a trade deal. Speaking to reporters outside the White House on Friday morning, the president reiterated that he had spoken with the Chinese president “numerous times,” but he refused to answer when pressed on whether any call had happened after he imposed the tariffs earlier this month.Mr. Trump’s comments appeared aimed at creating the impression of progress with China to soothe jittery financial markets, which have fallen amid signs that the world’s largest economies are not negotiating. The S&P 500 is down 10 percent since Mr. Trump’s Jan. 20 inauguration.But his claims of talks have been rejected by Chinese officials, who have repeatedly denied this week that they are actively negotiating with the United States.“China and the U.S. have not held consultations or negotiations on the issue of tariffs,” Guo Jiakun, the spokesman for the foreign ministry, said in a news conference on Friday. “The United States should not confuse the public.”On Thursday, He Yadong, a spokesman for China’s commerce ministry, had said that there were “no economic and trade negotiations between China and the United States.”“Any claims about progress in China-U.S. economic and trade negotiations are baseless rumors without factual evidence,” he said.Asked in the Time interview if he would call Mr. Xi if the Chinese leader did not call first, Mr. Trump said no.“We’re meeting with China. We’re doing fine with everybody,” the president said.Mr. Trump also said, without evidence, that he had “made 200 deals.” He added that he would finish and announce them in the next three to four weeks.With the two governments at an impasse, businesses that rely on sourcing products from China — varying from hardware stores to toymakers — have been thrown into turmoil. The triple-digit tariff rates have forced many to halt shipments entirely.Trump officials have argued that the status quo with China on trade is not sustainable. Mr. Trump has rapidly ratcheted up tariffs on Chinese products, from 54 percent on April 2 to 145 percent just one week later. The Chinese government has argued that the actions are unfair and closely matched his moves, raising its tariffs on American goods to 125 percent. More

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      Brace Yourself. Trump’s Trade War With China Will Get Even Uglier.

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      Voters elected Donald Trump in part because they wanted a fighter. But increasingly it seems that in international trade, he’s good at shaking his fist for the cameras but utterly outclassed when he steps into the boxing ring.Indeed, Trump may be more dangerous to his own side of a trade war than to the other guy.Even after Trump’s climb-down — declaring a 90-day pause on many of the “Liberation Day” levies that sent the stock market reeling — America’s tariff rates remain the highest in more than 90 years. They amount to an enormous tax hike on consumers, with researchers previously estimating that they might add something like $1,700 in costs per year to a middle-income American family. They’re a reason many economists fear that the United States is slipping into a recession.The most heated trade war is with China, and it’s there that I fear Trump has particularly miscalculated. He seems to be waiting for President Xi Jinping to cry uncle and demand relief, but that’s unlikely; instead, it may be the United States that will be most desperate to end the trade conflict.China does have serious internal economic challenges, including widespread underemployment and a deflationary loop with no end in sight. The trade war could cost China millions of jobs, and that raises some risks of political instability.Yet it’s also true that China has prepared for this trade war. I’m guessing some Chinese factories are already printing “Made in Vietnam” labels and preparing to ship goods through third countries. And China will fight with weapons that go far beyond tariffs.China buys agricultural products and airplanes from America, and it can almost certainly get what it needs elsewhere. But where is the United States going to get rare-earth minerals, essential for American industry and the military-industrial base?We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump’s Dilemma: A Trade War That Threatens Every Other Negotiation With China

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      President Trump is staking everything on winning by imposing tariffs on China. But the fight threatens to choke off negotiations about other issues like Taiwan, fentanyl, TikTok and more.President Trump came into office sounding as if he were eager to deal with President Xi Jinping of China on the range of issues dividing the world’s two biggest superpowers.He and his aides signaled that they wanted to resolve trade disputes and lower the temperature on Taiwan, curb fentanyl production and get to a deal on TikTok. Perhaps, over time, they could manage a revived nuclear arms race and competition over artificial intelligence.Today it is hard to imagine any of that happening, at least for a year.Mr. Trump’s decision to stake everything on winning a trade war with China threatens to choke off those negotiations before they even begin. And if they do start up, Mr. Trump may be entering them alone, because he has alienated the allies who in recent years had come to a common approach to countering Chinese power.In conversations over the past 10 days, several administration officials, insisting that they could not speak on the record, described a White House deeply divided on how to handle Beijing. The trade war erupted before the many factions inside the administration even had time to stake out their positions, much less decide which issues mattered most.The result was strategic incoherence. Some officials have gone on television to declare that Mr. Trump’s tariffs on Beijing were intended to coerce the world’s second-largest economy into a deal. Others insisted that Mr. Trump was trying to create a self-sufficient American economy, no longer dependent on its chief geopolitical competitor, even if that meant decoupling from the $640 billion in two-way trade in goods and services.Shipping containers in the port of Tianjin, China, last month. Beijing has matched every one of Mr. Trump’s tariff hikes, trying to send the message that it can endure the pain longer than the United States can. The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      China raises tariffs on US goods to 125% as Xi urges EU to resist Trump ‘bullying’

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      China has raised its tariffs on US products to 125% in the latest salvo of the trade dispute with Washington, just hours after Xi Jinping said there were “no winners in a tariff war”.Xi made the comments during a meeting with the Spanish prime minister in which he invited the EU to work with China to resist “bullying”, part of an apparent campaign to shore up other trading partners.The Chinese commerce ministry announced on Friday that it was raising the 84% tariffs on all US imports to 125%, again saying that China was ready to “fight to the end”. The statement also suggested it may be Beijing’s last move in the tit-for-tat tariff raises as “at the current tariff level, there is no market acceptance for US goods exported to China”.“If the US continues to impose tariffs on Chinese goods exported to the US, China will ignore it,” it said, flagging that there were other countermeasures to come.Some markets continued to tumble on Friday, as the French president, Emmanuel Macron, described the US president’s 90-day tariff pause – which sets most tariffs at 10% until July – as “fragile”.Asian indices followed Wall Street lower on Friday, with Japan’s Nikkei down nearly 5% and Hong Kong stocks heading towards the biggest weekly decline since 2008. Oil prices were also expected to drop for a second consecutive week.Chinese officials have been canvassing other trading partners about how to deal with the US tariffs, after the country was excluded from Trump’s 90-day pause of the steepest global tariffs. Instead the US president made consecutive increases to duties on Chinese imports, which are now 145%.On Friday, Xi welcomed Spain’s Pedro Sánchez, after also talking to counterparts in Saudi Arabia and South Africa. According to the official Chinese summary of the talks, Xi said “there will be no winners in a tariff war, and going against the world will isolate oneself”, in an apparent reference to the US.“China and the EU should fulfil their international responsibilities, jointly maintain the trend of economic globalisation and the international trade environment, and jointly resist unilateral bullying, not only to safeguard their own legitimate rights and interests, but also to safeguard international fairness and justice, and to safeguard international rules and order,” the summary said Xi told Sánchez.Spain said Sánchez told Xi his country favoured a more balanced relationship between the EU and China based on negotiations to resolve differences and cooperation in areas of common interest.Xi plans to travel to south-east Asia, including Vietnam and Cambodia, next week.Macron wrote on X early on Friday that Trump’s partial tariff suspension, pausing new rates on various countries that would have risen as high as 50%, “sends out a signal and leaves the door open for talks. But this pause is a fragile one.”He added: “This 90-day pause means 90 days of uncertainty for all our businesses, on both sides of the Atlantic and beyond.”Battered financial markets were given a brief reprieve on Wednesday when Trump decided to pause duties on dozens of countries. However, his escalating trade dispute with China, the world’s second-largest economy, has continued to fuel fears of recession and further retaliation.The US treasury secretary, Scott Bessent, tried to assuage the fears of sceptics by telling a cabinet meeting on Thursday that more than 75 countries wanted to start trade negotiations, and Trump had expressed hope of a deal with China.But the uncertainty in the meantime extended some of the most volatile trading since the early days of the Covid-19 pandemic.The US’s S&P 500 index ended 3.5% lower on Thursday and was now down about 15% from its all-time peak in February. Some analysts believe stocks have further to fall owing to the uncertainty surrounding the US tariff policy.Bessent shrugged off the renewed market sell-off on Thursday and predicted that striking deals with other countries would bring more certainty.The US and Vietnam agreed to begin formal trade talks after Bessent spoke to the Vietnamese deputy prime minister, Ho Duc Phoc, the White House said.The south-east Asian manufacturing hub is prepared to crack down on Chinese goods being shipped to the US via its territory in the hope of avoiding tariffs, Reuters reported on Friday.Taiwan’s president said his government would also be among the first batch of trading partners to enter negotiations. Taiwan, listed for a 32% tariff, has offered zero tariffs as a basis for talks.Japan’s prime minister, Shigeru Ishiba, meanwhile, has set up a taskforce led by his close aide that hopes to visit Washington next week, according to local media.View image in fullscreenWhile Trump suddenly paused his “reciprocal” tariffs on other countries hours after they came into effect this week, he did not include China, instead increasing duties on Chinese imports as punishment for Beijing’s initial move to retaliate.Trump had imposed tariffs on Chinese goods of 145% since taking office, a White House official said.Meanwhile, Trump told reporters at the White House he thought the US could make a deal with China, but he reiterated his argument that Beijing had “really taken advantage” of the US for a long time.“I’m sure that we’ll be able to get along very well,” the US president said, referring to Xi. “In a true sense, he’s been a friend of mine for a long period of time, and I think that we’ll end up working out something that’s very good for both countries.”Xi and Trump are not known to have spoken since before Trump’s inauguration. Beijing has said it has no intention of backing down to what it terms as Trump’s “bullying” with the tariffs.“We will never sit idly by and watch while the legitimate rights and interests of the Chinese people are infringed, nor will we sit idly by as international economic and trade rules and the multilateral trading system are undermined,” the Chinese foreign ministry spokesperson, Lin Jian, said on Thursday.As well as retaliatory tariffs, Beijing has also restricted imports of Hollywood films, and put 18 US companies on trade restriction lists.The commerce ministry said China’s door was open to dialogue but this must be based on mutual respect.The US tariff pause also does not apply to duties paid by Canada and Mexico, whose goods are still subject to 25% fentanyl-related tariffs unless they comply with the US-Mexico-Canada trade agreement’s rules of origin.With trade hostilities persisting among the top three US trade partners, Goldman Sachs estimates the probability of a recession at 45%.Even with the rollback, the overall average import duty rate imposed by the US is the highest in more than a century, according to Yale University researchers.It also did little to soothe business leaders’ worries about the fallout from Trump’s trade dispute and its chaotic implementation: soaring costs, falling orders and snarled supply chains.One reprieve came, however, when the EU said it would pause its first counter-tariffs. More

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      Stocks Jump in Asia After Trump’s Tariff Reprieve

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      Markets in Japan, South Korea and Taiwan soar after the U.S. president pauses punishing tariffs. Gains in mainland China were modest as trade hostilities heat up between Washington and Beijing.Following President Trump’s decision to pause punishing tariffs on dozens of countries, markets in Asia reacted predictably: Stocks soared in the countries that were spared.In early trading on Thursday, benchmark indexes rose more than 9 percent in Taiwan, 8 percent in Japan and 5 percent in South Korea. All three Asian economies were among the U.S. trading partners given a 90-day reprieve from Mr. Trump’s so-called reciprocal tariffs.While the U.S. allies won’t immediately face the 24 percent to 32 percent tariffs the Trump Administration had previously threatened, they will still be subject to a lower rate of 10 percent. That comes on top of 25 percent tariffs that Mr. Trump has imposed on goods including cars — a particular sore point for big auto exporters Japan and South Korea.In the United States, the reversal by Mr. Trump on Wednesday sparked the biggest one-day rally of the S&P 500 since October 2008, when stocks soared as investors anticipated central bank rate cuts in the wake of the global financial crisis.Huge Gains and Losses in One WeekModest gains or losses are the most common outcomes on S&P 500 trading days. But since last Thursday the index has had two steep drops and one of its biggest gains since 2000. More