Connect with us

World

US says ‘deal’ reached with China after trade talks

Published

on

Both China and the United States have said that they’ve made progress at trade talks between the two countries in Switzerland.

The US Treasury Secretary Scott Bessent described the discussions as “productive and constructive,” while China’s Vice Premier He Lifeng said the talks were “in-depth” and “candid”.

The White House called it a “trade deal” but gave no further details. A joint statement with full details is expected on Monday.

The pair were engaged in secretive closed-door discussions all weekend, in the first meeting since US President Donald Trump levied steep tariffs against China in January.

The talks were the first face-to-face meetings between the two countries since President Trump imposed a 145% tariff on Chinese imports, with Beijing responding with a 125% levy some US goods.

The huge tariffs caused turmoil in the financial markets and sparked fears of a global recession.

Stocks in mainland China and Hong Kong were making gains on Monday morning. The Shanghai Composite Index was around 0.4% higher, while the Hang Seng was up by almost 0.7%.

US stock futures were sharply higher. Futures are contracts to buy or sell an underlying asset at a future date and are an indication of how markets will trade when they open.

The Chinese currency, the yuan, also strengthened against the US dollar.

One trade expert told the BBC’s Business Today programme that the announcement may include cuts to their tariffs.

Frank Lavin, former undersecretary for international trade at the US Department of Commerce, said he expects the two countries to cut tariffs although they would remain “way above historical norms”.

But Deborah Elms, Head of Trade Policy at the Hinrich Foundation, was less optimistic.

The so-called reciprocal tariffs “could be addressed, but probably not. I think mostly what I expect is an agreement to keep talking,” she said on the BBC’s Newsday programme.

Following the conclusion of the two-day talks in Geneva, US trade representative ambassador Jamieson Greer said “the deal we struck with our Chinese partners” would help reduce the US’s $1.2tn (£901bn) trade deficit.

Bessent said the US and China have made “substantial progress” on de-escalating the trade war, while Vice Premier He said the talks were “of great significance to the two countries but also have an important impact on the stability and development of the global economy”.

Vice Premier He said the two sides have reached a series of major consensuses, and had also agreed to establish an economic and trade consultation mechanism.

Ngozi Okonjo-Iweala, inspector general of the World Trade Organization, called the talks “a significant step forward.”

“I urge both nations to build on this momentum by continuing to develop practical solutions that mitigate tensions, restore predictability, and strengthen confidence in the multilateral trading system,” she said in a statement.

On Saturday, following the first day of talks Trump praised the “total reset” on the relationship between the two countries.

Getty Images

In a social media post, the US president described the talks as being “very good” and said change had been “negotiated in a friendly, but constructive, manner”.

“We want to see, for the good of both China and the U.S., an opening up of China to American business. GREAT PROGRESS MADE!!!” Trump added.

An escalating trade war between Washington and Beijing has seen the US president hit Chinese imports to the US with tariffs of 145%. China retaliated with levies of 125% on some US goods.

On Friday, before the talks began, White House Press Secretary Karoline Leavitt said Washington would not lower tariffs unilaterally, and China would need to make its own concessions.

Both sides issued various other warnings ahead of the meeting, with Beijing saying the US must ease tariffs while Bessent stressed that the focus was on “de-escalation” and this was not a “big trade deal”.

Chinese state media reported that Beijing had decided to engage with the US after fully considering global expectations, the country’s interests and appeals from American businesses.

Last month, the BBC found that Chinese exporters were struggling with the US’s tariffs – one company, Sorbo Technology, reported that half of its products were normally sold to the US and were now sat in boxes in a warehouse in China.

Meanwhile, the US economy was found to have shrunk in the first three months of the year – contracting at an annual rate of 0.3% – as firms raced to get goods into the country.

The trade war between China and the US intensified last month after President Trump announced a universal baseline tariff on all imports to the United States, on what he called “Liberation Day”.

Around 60 trading partners, which the White House described as the “worst offenders”, were subjected to higher rates than others. The list included China and the European Union.

Trump said this was payback for years worth of unfair trade policies for the US.

He also separately announced a 25% import tax on all steel and aluminium coming into the US, and a further 25% tariff on all cars and car parts.

It was announced last week that the US and UK had agreed a deal, in which the 25% will be cut to 10% for a maximum of 100,000 UK cars – matching the number of cars the UK exported last year.

Cars are the UK’s biggest export to the US, worth about £9bn last year.

(BBC News)

World

Trump leaves G7 summit early as Iran-Israel conflict intensifies

Published

on

By

US President Donald Trump has cut short his visit to the Group of Seven summit in Canada, with the White House saying he must return to Washington to deal with the escalating conflict between Iran and Israel.

“I have to be back early for obvious reasons,” Trump said, as reports circulated he had instructed the White House National Security Council to meet upon his return.

US Defence Secretary Pete Hegseth earlier announced the “deployment of additional capabilities” to the Middle East to enhance the Pentagon’s “defensive posture” in the region.

But American officials rejected suggestions that the US was about to join Israeli offensive operations against Iran.

The White House was at pains to emphasise that Trump had “a great day” at the summit, saying much was accomplished, including a trade deal between the US and UK.

But the president’s press secretary said he was leaving the gathering of world leaders at Kananaskis in the Canadian Rockies after dinner on Monday night because of “what’s going on in the Middle East”. She did not elaborate.

It means the US president will miss in-person meetings with Ukrainian President Volodymyr Zelensky and Mexican President Claudia Sheinbaum that were scheduled for Tuesday, the final day of the summit.

At a photo session on Monday, Trump said it was important he return to Washington for “big stuff”. His departure came as Israel and Iran attacked each other for a fifth straight day.

Earlier the president posted on social media that Iran should have signed a deal that he put forward to them in the most recent round of US-Iran nuclear talks.

“Simply stated, IRAN CAN NOT HAVE A NUCLEAR WEAPON,” he wrote. “I said it over and over again!”

Trump also urged Iranians on his social media platform Truth Social to “immediately evacuate” their capital, Tehran, a city of up to 17 million people. He did not offer further details.

Shortly afterwards, Iranian media reported explosions and heavy air defence fire in Tehran early on Tuesday. That came hours after Israel targeted Iran’s state broadcaster, forcing a presenter to flee mid-broadcast.

In Israel, air raid sirens wailed in Tel Aviv after midnight and an explosion was heard as Iranian missiles targeted the country again.

World leaders at the G7 summit said they understood Trump’s need to leave early.

“If the United States can achieve a ceasefire, that’s a very good thing,” said French President Emmanuel Macron.

Australian Prime Minister Anthony Albanese said Trump’s exit was “understandable”, despite the two being scheduled to meet on Tuesday to discuss tariffs.

(BBC News)

Continue Reading

World

MI6 appoints first female chief in 116-year history

Published

on

By

MI6 will be led by a woman for the first time in the foreign intelligence service’s 116-year history.

Blaise Metreweli, who joined the Secret Intelligence Service in 1999, will become the 18th chief of the organisation and take over from Sir Richard Moore later this year.

She is currently responsible for technology and innovation at the service and said she was “proud and honoured” to have been asked to lead.

Prime Minister Sir Keir Starmer called the appointment “historic” at a time “when the work of our intelligence services has never been more vital”.

MI6 is tasked with gathering intelligence overseas to improve the UK’s security, with its core aims being to stop terrorism, disrupt the activities of hostile states and bolster cyber-security.

Its chief, commonly referred to as “C”, is the only publicly named member of the service.

Ms Metreweli, 47, is currently Director General “Q” – head of the crucial technology and innovation division that aims to keep the identities of secret agents secret, and come up with new ways to evade adversaries like China’s biometric surveillance.

“MI6 plays a vital role – with MI5 and GCHQ – in keeping the British people safe and promoting UK interests overseas,” she said.

“I look forward to continuing that work alongside the brave officers and agents of MI6 and our many international partners.”

Ms Metreweli, who studied anthropology at the University of Cambridge, has previously held director level roles in MI5 – MI6’s sister, domestic security agency – and spent most of her career working in the Middle East and Europe.

On the King’s overseas and international birthday honours list in 2024, she received the Companion of the Order of St Michael and St George (CMG) for her services to British foreign policy.

Speaking to the Telegraph in December 2021 when she was at MI5, under the pseudonym of “Director K”, Ms Metreweli said threats to UK national security “really are diverse”.

“The threats we are looking at primarily exist around protecting government, protecting secrets, protecting our people – so counter-assassination – protecting our economy, sensitive technology and critical knowledge,” she said.

She added that “Russian state activity – not Russia itself – remains a threat” and that China was “changing the way the world is and that presents amazing opportunities and threats for the UK”.

(BBC News)

Continue Reading

World

Iran confirms head of IRGC has been killed

Published

on

By

Strikes by Israel and Iran continue as the conflict between the two countries has intensified.
On Sunday, Israeli strikes killed the chief of Iran’s armed forces intelligence unit.  Iran has confirmed that the head of the Islamic Revolution Guards Corps (IRGC) intelligence unit, Mohammad Kazemi, has been killed. IRGC-linked Tasnim news agency and Iranian state TV say Kazemi died along with his deputy Hassan Mohaqeq and commander Mohsen Baqeri in Israeli attacks on Sunday.

Meanwhile, more than 10 Israelis are reported to have been injured following Iranian strikes. This comes after Israel attacked Iran early on Friday, hitting nuclear facilities, military sites and populated areas. Iran has responded with drones and ballistic missiles

“Iran and Israel should make a deal, and will make a deal,” says US President Donald Trump, adding that he will be the one to make it happen. He has added calls and meetings are taking place as the escalation stretches into a third day, but Iran says it will not negotiate a ceasefire while under attack.

Israeli Prime Minister Benjamin Netanyahu says “the issue here is not de-escalation”, but stopping Iran from developing its nuclear capability.

Iran’s health ministry reports that at least 224 people have been killed in Israeli attacks since Friday, while at least 10 Israelis were killed in Iranian strikes overnight.

(BBC News)

Continue Reading

Trending

Copyright © 2024 Sri Lanka Mirror. All Rights Reserved