Did Trump’s tariffs kill economic populism?

Lasting damage has been done not only to Trump’s political credibility but to globalisation as a system

At the beginning of this helter-skelter week, Downing Street was declaring globalisation not only dead but a failure. Now, only five trading days later, the autopsy is still under way but the victim may instead be economic populism, strangled by Wall Street, the citadel of globalisation. Donald Trump’s so-called liberation day may in fact have been the anti-globalist’s entombment day.

In an effort to deny even a tactical retreat, Trump’s aides insist the White House goal all along was not to weaken globalism, or even to protect the US economy with tariffs, but instead to get into a negotiation to lower tariffs around the world and to punish China. As cover stories go, it is hardly credible, partly because the tariffs were repeatedly lauded by Trump as a macroeconomic revenue-raising measure, or a means to bolster US manufacturing.

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Tesla stops taking orders in China for two models imported from US

Carmaker removes ‘order now’ buttons for Model S saloon and Model X SUV on its Chinese website amid tariffs war

Tesla has stopped taking orders in China for two models it previously imported from the US, as companies scramble to adapt to prohibitive tariffs imposed in Donald Trump’s trade war.

The manufacturer, run by Trump’s close ally Elon Musk, removed “order now” buttons on its Chinese website for its Model S saloon and Model X sports utility vehicle.

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China raises US tariffs to 125% as Xi invites EU to team up against Trump ‘bullying’

Chinese leader canvasses Spain and other trading partners on how to tackle economic fallout as market turmoil continues

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.

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Will global climate action be a casualty of Trump’s tariffs?

Clean energy investors likely to pull back from US, but other countries may seize opportunity to speed transition

Donald Trump’s upending of the global economy has raised fears that climate action could emerge as a casualty of the trade war.

In the week that has followed “liberation day”, economic experts have warned that the swathe of tariffs could trigger a global economic recession, with far-reaching consequences for investors – including those behind the green energy projects needed to meet climate goals.

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Taiwan charges Chinese captain with damaging undersea cables

Taiwan launches first such prosecution, alleging the captain of the Chinese-crewed Hong Tai 58 dropped anchor near an undersea cable that then damaged it

Prosecutors in Taiwan charged, for the first time, a Chinese ship captain with intentionally damaging undersea cables off the island in February, after a rise in sea cable malfunctions alarmed Taiwan officials amid tensions with China.

Prosecutors say the man was captain of the Chinese-crewed Hong Tai 58, registered in Togo, which Taiwanese authorities detained after suspecting the ship had dropped anchor near an undersea cable off southwestern Taiwan, allegedly damaging it.

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China and North Korea aid to Russia poses security risk in Indo-Pacific region, says top US commander

Beijing and Pyongyang are aiding Russia in its war against Ukraine, and Moscow in turn is assisting their militaries

The top US commander in the Pacific has warned senators that the military support that China and North Korea are giving Russia in its war on Ukraine is a security risk in his region as Moscow provides critical military assistance to both in return.

Adm Samuel Paparo, head of US Indo-Pacific Command, told the Senate armed services committee that China has provided 70% of the machine tools and 90% of the legacy chips to Russia to help Moscow “rebuild its war machine”.

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Will Trump’s tariff chaos be China’s gain in global trade wars?

As China retaliates against tariffs, it is also making strategic manoeuvres on EU and Asia to maximise opportunities

On the basis of Napoleon’s dictum “never interrupt your enemy while they are making a mistake”, there was a large incentive for China to do precisely nothing as Donald Trump displayed his determination to lose friends and induce market panic. Indeed, the Chinese advocates of passivity cited a social media meme attributed to President Xi Jinping: “Do nothing. Win.”

Initially it was tempting for China to sit back and watch the US’s former allies recoil at Trump’s disruptive war on globalisation and let them realise that, by comparison, China represented an oasis of stability, modernity and predictability.

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UK trade minister visits China at same time as head of British military

Douglas Alexander’s unpublicised trip to talk with counterparts coincides with that of Adm Sir Tony Radakin

A trade minister has travelled to China for an unpublicised visit this week at the same time as the head of the British military, the Guardian has learned.

Douglas Alexander, the minister for trade policy and economic security, is paying a visit to Beijing this week for talks with Chinese counterparts. He is also due to visit Hainan and Hong Kong.

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China to restrict US film releases after Trump’s tariff hike

After the US president imposed 125% duties on Chinese imports, Beijing says it will restrict American films opening in its lucrative market

Hours after Donald Trump imposed record 125% tariffs on Chinese products entering the US, China has announced it will further curb the number of US films allowed to screen in the country.

“The wrong action of the US government to abuse tariffs on China will inevitably further reduce the domestic audience’s favourability towards American films,” the China Film Administration said in a statement on Thursday. “We will follow the market rules, respect the audience’s choice, and moderately reduce the number of American films imported.”

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Apple said to be flying iPhones from India to US to avoid Trump tariffs

Tech firm has reportedly flown 600 tonnes of handsets from Indian factories as Chinese goods face huge tariffs

Apple is reportedly chartering cargo flights to ferry iPhones from its Indian manufacturing plants to the US in an attempt to beat Donald Trump’s tariffs.

The tech company has flown 600 tonnes of iPhones, or as many as 1.5m handsets, to the US from India since March after ramping up production at its plants in the country, according to Reuters.

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Thursday briefing: Trump puts global tariffs on pause – but hikes them for China

In today’s newsletter: White House officials send mixed messages over Trump’s stunning U-turn

Good morning. Two main pieces of news from Donald Trump yesterday: he has rolled back water efficiency standards to “make America’s showers great again”, because he likes “to take a nice shower to take care of my beautiful hair”; and he has rolled back the exorbitant tariffs he applied to many countries last week to 10% – but increased them for China. “No longer will showerheads be weak and worthless,” the White House said. This will come as welcome news for the many investors who have recently been taking a bath.

It was a pretty chaotic change, all told: there were contradictory messages from Trump’s advisers on which countries would be affected, why he did it, and what Beijing should expect to happen next. Still, the markets breathed a large sigh of relief, and the S&P 500 had one of the strongest days of its postwar history. This morning, share indices in Asia have jumped in turn.

Gaza | Israeli aircraft struck a residential block in war-ravaged northern Gaza on Wednesday, killing at least 23 people, including eight women and eight children health officials said, as the Israeli military is reportedly preparing to seize the entire city of Rafah.

Trade | The UK and India have agreed 90% of their free trade agreement, businesses were told on a call with negotiators this week. There are hopes the UK government will succeed in finalising a highly coveted trade deal with India, a booming economy of 1.4 billion people, this year.

Smartphones | Almost all schools in England have banned mobile phone use by pupils, according to a survey run by Rachel de Souza, the children’s commissioner for England. Among 15,000 schools, 99.8% of primaries and 90% of secondaries have some form of ban.

Defence | Hot weather is expected to bring highs of 24C to the UK as fire services continue to warn of wildfires across the country. The Met Office said temperatures would peak on Friday in London and south-east England, which could make it the hottest day of the year so far, while temperatures could hit 23C on Thursday.

BBC | A controversial sculpture outside the BBC’s headquarters has been restored and put back on display behind a screen after being vandalised, with the corporation saying it in no way condoned the “abusive behaviour” of its creator, Eric Gill. There have long been calls for Gill’s works to be removed since his diaries revealed he had sexually abused his two eldest daughters.

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US-China trade war intensifies as Beijing’s tariffs come into effect after Trump pause

China’s 84% tariffs against US products comes into force amid market relief at Donald Trump’s move to pause steep reciprocal tariffs around the world

Donald Trump’s trade war with China entered a new phase on Thursday, as Beijing’s 84% retaliatory tariffs came into effect hours after the US president announced a pause of steep reciprocal tariffs on dozens of countries except China.

Markets rebounded after Trump’s announcement of the sudden pause, after the most volatile episode in financial markets since the pandemic.

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Gordon Brown calls for ‘economic coalition of the willing’ to tackle Trump tariffs

Former PM says it is also the moment for the UK to go even further in renewing ties with the EU

Gordon Brown has called for an “economic coalition of the willing” to respond to Donald Trump’s tariffs with coordinated economic policies, including a reduction of interest rates.

The former prime minister also said it was a moment for the UK to go even further in renewing ties with the EU, suggesting it should mean “collaboration that is even more extensive than removing post-Brexit trade barriers”.

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Nursing home fire in northern China leaves 20 dead

The Hebei nursing home’s other residents have been transferred to nearby hospitals as authorities investigate cause of the blaze

Twenty people have died in a fire at a nursing home in northern China’s Hebei province, Beijing’s state news agency Xinhua said on Wednesday.

The fire broke out on Tuesday night at the nursing home in Longhua County, roughly 180km northeast of the Chinese capital Beijing, Xinhua said.

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Asian markets fall as Trump’s sweeping global tariffs, including 104% against China, due to take effect – business live

Stock markets down from Australia to Japan and Taiwan as Trump presses ahead with plans to hit China with huge retaliatory tariffs

Today’s tariffs follow Trump’s 10% tariff on all imports from many countries, including Australia, which came into effect at the weekend.

US customs agents began collecting the unilateral tariff at US seaports, airports and customs warehouses on Saturday. Today’s measures are higher levies on goods from 57 larger trading partners.

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China fires back after Pete Hegseth calls country a threat to Panama canal

Chinese government asks: ‘Who represents the real threat?’ after US defense secretary vows to keep canal secure

US secretary of defense Pete Hegseth said on Tuesday that the Panama canal faces ongoing threats from China but that together the United States and Panama will keep it secure.

Hegseth’s remarks triggered a fiery response from the Chinese government, which said: “Who represents the real threat to the Canal? People will make their own judgement.”

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Two Chinese nationals caught fighting for Russia in Ukraine, Zelenskyy says

Ukrainian president says men’s capture shows Moscow is trying to involve Beijing in the war ‘directly or indirectly’

Ukrainian forces have captured two Chinese nationals fighting with the Russian army in the eastern Donetsk region, according to Volodymyr Zelenskyy.

The Ukrainian president said they were two of many more Chinese members of the Russian armed forces, and he accused the Kremlin of trying to involve Beijing in the conflict “directly or indirectly”.

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How Trump tariffs could push Vietnam into the arms of China

The move has sent shock waves through a region of US strategic importance that had respected Trump as tough on Beijing

Vietnam had tried to appease Donald Trump: tariffs on US goods were reduced; regulations were passed to allow Elon Musk’s SpaceX to launch its Starlink in the country. The prime minister, Pham Minh Chinh, even joked in January that he would happily “play golf all day long” at Trump’s Mar-a-Lago home in Florida if it could “bring benefits to my country and my people”.

The strategies do not appear to have worked. Trump has inflicted an extraordinary 46% tariff on Vietnam that threatens to devastate its economic growth plans and undermine relations between the two countries. The tariff has sent shock waves through Vietnam, a manufacturing powerhouse where Trump has always been fairly popular, and across south-east Asia.

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China vows to ‘fight to the end’ against latest Trump tariff threat

Beijing accuses US of blackmail and adding a ‘mistake on top of a mistake’ as Wednesday deadline for latest levies looms

China’s government says it will “fight to the end” if the US continues to escalate the trade war, after Donald Trump threatened huge additional tariffs in response to China’s retaliatory measures.

On Tuesday, China’s commerce ministry accused the US of “blackmail” and said the US president’s threats of additional 50% tariffs if Beijing did not reverse its own 34% reciprocal tariff were a “mistake on top of a mistake”.

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Trump threatens additional 50% tariffs on China over retaliatory levies

President poised to further impose taxes after Beijing announced a 34% tariff on US imports as global markets fall

Donald Trump has threatened to impose an additional 50% tariff on imports from China on Wednesday unless the country rescinds its retaliatory tariffs on the United States by Tuesday.

The news comes on the third day of catastrophic market falls around the globe since Trump announced his trade war last Wednesday with tariffs on the US’s trading partners.

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