Category Archives: Global economy

China says it will ‘fight to end’ after US said it was trying to hurt world economy

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Commerce ministry says US is ‘threatening to intimidate’ with plans for new Trump tariffs on exports

China has hit back at accusations from the US that it is trying to hurt the world economy, as the trade war between the world’s two biggest economies appeared to re-escalate, amped up by aggressive rhetoric on both sides.

China’s commerce ministry said on Tuesday that the US was “threatening to intimidate” with the prospect of new tariffs on Chinese exports, “which is not the right way to get along with China”. Its spokesperson said that China would “fight to the end” in trade talks.

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China warns US of retaliation over Trump’s 100% tariffs threat

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Beijing says it will act if US president doesn’t stand down, while investors brace for trade war turmoil

Beijing has told the US it will retaliate if Donald Trump fails to back down on his threat to impose 100% tariffs on Chinese imports as investors brace for another bout of trade war turmoil.

China’s commerce ministry blamed Washington for raising trade tensions between the two countries after Trump announced on Friday that he would impose the additional tariffs on China’s exports to the US, along with new controls on critical software, by 1 November.

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‘A fatal blow’: Italian producers fear effects of Trump’s ‘war against pasta’

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US president’s threat to impose 92% tariffs targeting major manufacturers put family-run firms in the firing line as well

“It’s a real pity,” laments Antonio Rummo of Donald Trump’s latest target in his ever-evolving tariff war: Italian pasta. Rummo is the sixth-generation grandson of the founder of Pasta Rummo, who opened a wheat mill in Benevento in southern Italy in 1846, using the family’s three horses to lug grain from the surrounding Campania region and Puglia to produce fresh pasta.

“Demand for premium pasta in the US has been growing,” says Rummo. Appreciated by consumers for a traditional processing method that guarantees it will cook to al dente perfection, sales of Pasta Rummo have been thriving.

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UK plastic waste exports to developing countries rose 84% in a year, data shows

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Campaigners say increase in exports mostly to Malaysia and Indonesia is ‘unethical and irresponsible waste imperialism’

Britain’s exports of plastic waste to developing countries have soared by 84% in the first half of this year compared with last year, according to an analysis of trade data carried out for the Guardian.

Campaigners described the rise in exports, mostly to Malaysia and Indonesia, as “unethical and irresponsible waste imperialism”.

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Ineos to cut a fifth of Hull jobs, blaming ‘dirt-cheap’ imports from China

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Company says more roles will be at risk unless UK government supports tariffs to protect industry

Ineos, the chemicals company owned by the billionaire Sir Jim Ratcliffe, is to cut a fifth of jobs at its East Yorkshire plant, blaming “sky high” energy costs and “dirt-cheap” imports from China.

The company founded in 1998 by Ratcliffe, who co-owns Manchester United FC, said it would cut 60 jobs at the Acetyls site in Hull, which makes petrochemical products such as acetic acid. It said more roles would be at risk across the industry unless the government stepped in.

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Chinese economy slows amid Trump trade war and weaker consumer spending

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Slowing growth in factory output and retail sales prompts calls for fresh economic stimulus

China’s economy showed further signs of weakness last month as it comes under strain from Donald Trump’s trade wars and domestic problems, with factory output and consumer spending rising at their slowest pace for about a year.

The disappointing data adds pressure on Beijing to roll out more stimulus to fend off a sharp slowdown, with a debt crisis denting the country’s once-booming property sector and exports facing stronger headwinds.

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EU and US officials meet as Trump says he is ready to impose further sanctions on Russia

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Europe and US consider further actions to weaken Russia after largest-ever air attack on Ukraine over the weekend

The EU’s most senior sanctions envoy is holding talks in Washington with US officials after Donald Trump said he was ready to take further action against Russia over the war in Ukraine.

David O’Sullivan, the EU sanctions envoy, is meeting US counterparts on Monday, as Europe and the US look for tougher measures to weaken Vladimir Putin’s war machine after Russia launched its largest-ever air attack on Ukraine over the weekend.

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Trump asks US supreme court to overturn trade tariffs ruling

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Move follows federal appeals court decision that sweeping ‘liberation day’ levies on imports had overstepped presidential powers

Donald Trump has asked the US supreme court to overturn a lower court decision that most of his sweeping trade tariffs were illegal.

The US president filed a petition late on Wednesday to ask for a review of last week’s federal appeals court ruling in Washington DC, which centred on his “liberation day” border taxes introduced on 2 April, which imposed levies of between 10% and 50% on most US imports, sending shock waves through global trade and markets.

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UK metals firms threaten to sue government over tariffs on steel imports from Asia

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Companies send letter to business secretary complaining new rules were imposed with 24 hours’ notice

UK metals companies have threatened to take legal action against the government over tariffs on raw steel imports from Asia which they claim have caused a “tsunami” of problems for the industry.

Earlier this summer, the business secretary, Jonathan Reynolds, reduced the amount of raw steel from Vietnam and South Korea that can be imported tariff-free in a move designed to protect UK raw steel makers, which face competition from cheap imports.

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US and China poised to extend tariff truce after failing to find resolution at talks

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Trump will need to approve pause, say US representatives after negotiations end with sides failing to break deadlock on trade terms

US and Chinese negotiators have agreed in principle to push back the deadline for escalating tariffs, although America’s representatives said any extension would need Donald Trump’s approval.

Officials from both sides said after two days of talks in Stockholm that while had failed to find a resolution across the many areas of dispute they had agreed to extend a pause due to run out on 12 August.

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European Central Bank keeps interest rates on hold despite sluggish growth

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Central bank shuns calls to reduce borrowing costs as higher US tariffs loom

The European Central Bank has kept interest rates on hold as figures showed the eurozone economy maintaining a slow pace of economic growth.

In what was widely expected to be a pause before further cuts later in the year, the Frankfurt-based central bank shunned calls to reduce the cost of borrowing and held its main interest rate at 2% and the deposit rate at 2.15%.

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China’s economy beats expectations in face of Trump’s trade war

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GDP grows 5.2% in second quarter as world’s second largest economy ‘front-loads’ shipments before tariffs kick in

China’s economy grew more strongly than expected in the second quarter as it proved resilient in the face of Donald Trump’s trade war.

China’s gross domestic product (GDP) grew 5.2% in April to June compared with a year earlier, slowing from 5.4% in the first quarter, but just ahead of analysts’ expectations for a rise of 5.1%.

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Lobbyists linked to Donald Trump paid millions by world’s poorest countries

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Somalia, DR Congo and Yemen among states forced to sign deals and barter their minerals for aid or military support

Some of the world’s poorest countries have started paying millions to lobbyists linked to Donald Trump to try to offset US cuts to foreign aid, an investigation reveals.

Somalia, Haiti and Yemen are among 11 countries to sign significant lobbying deals with figures tied directly to the US president after he slashed US foreign humanitarian assistance.

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Is Trump tariff deal really a win for Vietnam – or a way of punishing China?

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US exports account for third of Vietnam’s GDP and 40% tariff on so-called transshipments – products with Chinese input – means uncertainty for manufacturers

As news spread that Vietnam would become just the second nation to reach an initial tariff agreement with Washington, shares in the clothing companies and manufacturers that have a large footprint in the country rose with optimism.

Just hours later though, they declined sharply, as it became clear that the devil would be in the detail, and the most striking part of the deal might in fact be aimed at Vietnam’s powerful neighbour China.

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Trump says US to start sending tariff rates letters to trading partners

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Letters to be sent to countries without a deal in place before end of 90-day pause on 9 July

Donald Trump has said the US will start sending letters to trading partners setting out tariff rates that countries will have to pay from the beginning of next month.

The US president told the media that about “10 or 12” letters would be sent out on Friday, with further letters sent out over the “next few days”.

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EU may as well be ‘province of China’ due to reliance on imports, says industrialist

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Stefan Scherer, boss of AMG Lithium, says Europe must become more self-sufficient in critical raw materials and new technologies

The EU may as well “apply to be a province of China” such is its inability to wean itself off that country’s supply of critical raw materials used in everything from electric vehicles to smartphones and wind turbines, a leading German industrialist has said.

As chief executive of AMG Lithium, the EU’s first factory to make the lithium hydroxide used in many car batteries, Stefan Scherer sits at the centre of what has been dubbed a new gold rush.

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White House says Canadian PM ‘caved’ to Trump demand to scrap tech tax

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Trump officials hail U-turn as Mark Carney says decision to rescind digital services tax means revival of trade talks

The United States has said that Canada’s prime minister Mark Carney “caved” to demands from the White House after his government abruptly scrapped their digital services tax on US technology companies, which was set to go into effect on Monday.

“It’s very simple. Prime minister Carney and Canada caved to president [Donald] Trump and the United States of America,” press secretary Karoline Leavitt said in a daily briefing.

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Rising poverty in conflict zones ‘causes a billion people to go hungry’

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In first assessment since pandemic in 2020, World Bank urges other countries to step up support

Extreme poverty is accelerating in 39 countries affected by war and conflict, leaving more than a billion people to go hungry, according to the World Bank.

Civil wars and confrontations between nations, mostly in Africa, have set back economic growth and reduced the incomes of more than a billion people, “driving up extreme poverty faster than anywhere else”, the Washington-based body said.

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EU retaliation against Trump drug tariffs would be bad idea, says industry

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European pharmaceutical body says it would be ‘negative for both sides’ if Brussels hits back on threatened US levies

The European pharmaceutical industry has urged Brussels not to retaliate if Donald Trump brings in threatened tariffs on imported drugs, amid fears he could impose the levies as early as next week.

The US president said last week that the sector-specific tariffs were coming “very soon”. There is concern in Brussels that he could impose them imminently to give himself further leverage ahead of his self-imposed 9 July deadline for trade deals with the EU and about 60 countries.

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High-rise, high expectations: is Casablanca’s finance hub a model for African development?

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Morocco’s commercial centre has brought investment to the continent – but critics say it masks domestic inequality

For centuries, Casablanca was a significant trading hub for merchants from across the breadth of the Atlantic coast, given its geographical position between Africa, the Middle East and Europe.

These days, Morocco’s economic capital is merging those historical roots with a strong modern commercial identity. One such manifestation is the Casablanca Finance City (CFC) district, whose high-rise buildings stand as a symbol of the city’s dream of being a main gateway for international investment into Africa.

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