China hits back with tariffs on US goods after Trump imposes new levies

MG cars are seen before being loaded onto a ship for export at the port in Lianyungang, in China's eastern Jiangsu province on December 10, 2024. (AFP file)
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Updated 04 February 2025
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China hits back with tariffs on US goods after Trump imposes new levies

  • Beijing slaps 15% levy on US LNG, coal; 10% on crude, farm equipment
  • Donald Trump initiated two-year trade war with China in his first term

WASHINGTON/BEIJING: China on Tuesday slapped tariffs on US imports in a rapid response to new US duties on Chinese goods, renewing a trade war between the world’s top two economies as President Donald Trump sought to punish China for not halting the flow of illicit drugs.

Trump’s additional 10 percent tariff across all Chinese imports into the US came into effect at 12:01 a.m. ET on Tuesday (0501 GMT).

Within minutes, China’s Finance Ministry said it would impose levies of 15 percent for US coal and LNG and 10 percent for crude oil, farm equipment and some autos. The new tariffs on US exports will start on Feb. 10, the ministry said.

Separately, China’s Commerce Ministry and its Customs Administration said the country is imposing export controls on tungsten, tellurium, ruthenium, molybdenum and ruthenium-related items to “safeguard national security interests.”

Trump on Monday suspended his threat of 25 percent tariffs on Mexico and Canada at the last minute, agreeing to a 30-day pause in return for concessions on border and crime enforcement with the two neighboring countries.

But there was no such reprieve for China, and a White House spokesperson said Trump would not be speaking with Chinese President Xi Jinping until later in the week.

During his first term in 2018, Trump initiated a brutal two-year trade war with China over its massive US trade surplus, with tit-for-tat tariffs on hundreds of billions of dollars’ worth of goods upending global supply chains and damaging the world economy.

To end that trade war, China agreed in 2020 to spend an extra $200 billion a year on US goods but the plan was derailed by the COVID pandemic and its annual trade deficit had widened to $361 billion, according to Chinese customs data released last month.

“The trade war is in the early stages so the likelihood of further tariffs is high,” Oxford Economics said in a note as it downgraded its China economic growth forecast.

Trump warned he might increase tariffs on China further unless Beijing stemmed the flow of fentanyl, a deadly opioid, into the United States.

“China hopefully is going to stop sending us fentanyl, and if they’re not, the tariffs are going to go substantially higher,” he said on Monday.

China has called fentanyl America’s problem and said it would challenge the tariffs at the World Trade Organization and take other countermeasures, but also left the door open for talks.

Neighborly deals

There was relief in Ottawa and Mexico City, as well as global financial markets, after the deals to avert the hefty tariffs on Canada and Mexico.

Both Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum said they had agreed to bolster border enforcement efforts in response to Trump’s demand to crack down on immigration and drug smuggling. That would pause 25 percent tariffs due to take effect on Tuesday for 30 days.

Canada agreed to deploy new technology and personnel along its border with the United States and launch cooperative efforts to fight organized crime, fentanyl smuggling and money laundering.

Mexico agreed to reinforce its northern border with 10,000 National Guard members to stem the flow of illegal migration and drugs.

The United States also made a commitment to prevent trafficking of high-powered weapons to Mexico, Sheinbaum said.

“As President, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that. I am very pleased with this initial outcome,” Trump said on social media.

After speaking by phone with both leaders, Trump said he would try to negotiate economic agreements over the coming month with the two largest US trading partners, whose economies have become tightly intertwined with the United States since a landmark free-trade deal was struck in the 1990s.


Kabul says ready for ‘dialogue’ with US on Afghan refugees

Updated 5 sec ago
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Kabul says ready for ‘dialogue’ with US on Afghan refugees

  • Over 11,000 Afghans in the US risk deportation after losing temporary protected status this month
  • Many of them backed the US during the 20-year war in Afghanistan and fled in fear of the Taliban

KABUL: The Taliban government said Tuesday it was ready for “dialogue” with the Trump administration on the repatriation of Afghan refugees whose legal protections in the United States will be revoked in July.

Citing an improved security situation in Afghanistan, Washington announced Monday that the temporary protected status (TPS) designation for Afghanistan would expire on May 20 and the termination would take effect on July 12.

Kabul is “ready to engage in constructive dialogue with the US & other countries regarding repatriation of Afghans who no longer meet criteria to remain in host countries,” said Abdul Qahar Balkhi, spokesman for the Ministry of Foreign Affairs, on X.

The Taliban government has already offered assurances that those Afghans who fled the country as they stormed back to power in 2021 could safely return.

However, the United Nations has reported cases of executions and disappearances.

Taliban authorities have also squeezed women out of education, jobs and public life since 2021, creating what the UN has called “gender apartheid.”

The move by Washington could affect more than 11,000 Afghans, many of whom supported the United States during two decades of war and fled Taliban persecution, according to Shawn VanDiver, president of AfghanEvac.

“Afghanistan is the shared home of all Afghans, & all have the right to free movement,” Balkhi said in his statement.

The country has faced a major economic crisis since 2021 and is enduring the second worst humanitarian crisis in the world after Sudan, according to the United Nations.

More than 100,000 Afghans have returned home since neighboring Pakistan launched a new mass expulsion campaign in April.

More than 265,000 undocumented Afghans also returned from neighboring Iran between January and April, according to the International Organization for Migration (IOM).

US federal law permits the government to grant TPS to foreign citizens who cannot safely return home because of war, natural disasters or other “extraordinary” conditions.

But since taking office President Donald Trump has moved to strip the designation from citizens of countries including Haiti and Venezuela as part of his broader crackdown on immigration.


US Republicans eye key votes on Trump tax cuts mega-bill

Updated 14 May 2025
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US Republicans eye key votes on Trump tax cuts mega-bill

WASHINGTON: Republicans geared up Tuesday for a series of crucial votes on Donald Trump’s domestic policy mega-bill, with rows over spending threatening to unravel the US president’s plans for sweeping tax cuts.
Three key House committees are slated to finalize and vote on their portions of Trump’s much-touted “big, beautiful” bill, led by a roughly $5 trillion extension of his 2017 tax relief.
Republicans are weighing partially covering the cost with deep cuts to the Medicaid health insurance program that benefits more than 70 million low-income people.
Before it can get to Trump’s desk, the package must survive votes of the full House and Senate, where Republicans have razor-thin controlling margins.
“The bill delivers what Americans voted for — tax policies that put working families first — and kick-starts a new golden era of American prosperity and strength,” said Jason Smith, chairman of the Ways and Means Committee, which is charged with drafting the tax proposals.
The marathon committee debates are expected to continue into the night and even spill into daytime Wednesday ahead of a make-or-break full House vote planned for next week.
If any of the committees fall short, the timetable for ushering in Trump’s priorities could be upended.
As the Republican billionaire seeks to cement his legacy with lasting legislation, every week is considered crucial ahead of 2026 midterm elections that could see his grip on the levers of power weakened.
But the package is threatened by bitter infighting, with conservatives angling for much deeper cuts and moderates worried about threats to health coverage.
Republicans plan to slash more than $700 billion from health care alone, which would leave several million people without coverage, according to a nonpartisan estimate by the Congressional Budget Office.
Democrats have angrily defended at-risk entitlements and hit out at tax cuts they say are a debt-inflating gift to the rich, funded by the middle class.
On the tax front, House Republicans released a nearly 390-page bill Monday detailing where they want to raise revenues to cover Trump’s promised extension of the expiring 2017 tax cuts.
The Joint Committee on Taxation estimates that this portion of the package will mean $3.7 trillion in lost revenue between 2025-2034, when savings in the text are taken into account.
The president appears on course to get most of what he wants — including a four-year pause on tax on tips, overtime and interest on loans for American-made cars.
There are big tax hikes on the endowments of wealthy colleges such as Harvard, Yale and Princeton, and an aggressive roll-back of Joe Biden’s clean energy tax credits.
But Republicans representing districts in high-tax states have rejected as too low a proposed increase in the relief they get in state and local taxes  from $10,000 to $30,000.
Democrats hosted a press event at the US Capitol to decry the proposed cuts ahead of the committee meetings, deploying a mobile billboard criticizing Republicans over the Medicaid proposals.
“Let’s be clear: There’s nothing moderate, efficient, or reasonable about Donald Trump and Republicans’ dangerous plans to gut health care and force kids to go hungry so they can fund tax handouts for billionaires,” said Democratic National Committee spokesperson Aida Ross.
Twenty-five activists were arrested outside one of the committee rooms for “illegally demonstrating,” the US Capitol Police told AFP.
“It is against the law to protest inside the congressional buildings,” the force said in a statement.
 


Trump’s approval rating rises as Americans worry less about recession

Updated 14 May 2025
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Trump’s approval rating rises as Americans worry less about recession

WASHINGTON: President Donald Trump’s approval rating rose this week as Americans worried less about his handling of the economy and prospects of a recession, according to a Reuters/Ipsos poll that closed on Tuesday.
The two-day poll showed 44 percent of respondents approved of the Republican leader’s performance, up from 42 percent in a prior Reuters/Ipsos survey carried out April 25-27. The poll had a margin of error of 3 percentage points.
Approval of Trump’s economic stewardship rose to 39 percent from 36 percent.
Trump began his term with a 47 percent approval rating, and saw his popularity tick lower as Americans worried about a series of trade wars he launched since taking office on January 20.
Trump’s moves to hike tariffs to historic levels on major trading partners, notably China, fueled stock market declines as many economists predicted a recession was looming.
In recent weeks, Trump has eased back on his sharpest trade actions and announced on Monday morning he was slashing tariffs on China. The benchmark S&P 500 stock index is up about 17 percent from its lowest closing of Trump’s second administration, hit soon after he unveiled sweeping tariffs.
Among the public, concerns about recession have also eased but remain high.
Some 69 percent of respondents in the new poll said they were concerned about a recession, down from 76 percent in a Reuters/Ipsos poll conducted April 16-21. The share who said they worried about the stock market fell to 60 percent from 67 percent.
Trump has said blame for the country’s economic problems should fall on former President Joe Biden, his Democratic predecessor. Inflation surged during Biden’s presidency amid the global economic chaos of the COVID-19 pandemic, but trended lower toward the end of his presidency. Annual price inflation cooled in April, the Labor Department said on Tuesday, though economists continue to warn that Trump’s trade actions are likely to boost prices later in the year.
In the Reuters/Ipsos poll, 59 percent of respondents said it would be Trump’s fault if the economy falls into recession this year, compared to 37 percent who said it would be Biden’s fault.
The Reuters/Ipsos poll, conducted nationwide online, surveyed 1,163 people.


Kabul says ready for ‘dialogue’ with US on Afghan refugees

Updated 14 May 2025
Follow

Kabul says ready for ‘dialogue’ with US on Afghan refugees

  • The country has faced a major economic crisis since 2021 and is enduring the second worst humanitarian crisis in the world after Sudan, according to the United Nations

KABUL: The Taliban government said Tuesday it was ready for “dialogue” with the Trump administration on the repatriation of Afghan refugees whose legal protections in the United States will be revoked in July.

Citing an improved security situation in Afghanistan, Washington announced Monday that the temporary protected status (TPS) designation for Afghanistan would expire on May 20 and the termination would take effect on July 12.

Kabul is “ready to engage in constructive dialogue with the US & other countries regarding repatriation of Afghans who no longer meet criteria to remain in host countries,” said Abdul Qahar Balkhi, spokesman for the Ministry of Foreign Affairs, on X.

The Taliban government has already offered assurances that those Afghans who fled the country as they stormed back to power in 2021 could safely return.

However, the United Nations has reported cases of executions and disappearances.

Taliban authorities have also squeezed women out of education, jobs and public life since 2021, creating what the UN has called “gender apartheid.”

The move by Washington could affect more than 11,000 Afghans, many of whom supported the United States during two decades of war and fled Taliban persecution, according to Shawn VanDiver, president of AfghanEvac.

“Afghanistan is the shared home of all Afghans, & all have the right to free movement,” Balkhi said in his statement.

The country has faced a major economic crisis since 2021 and is enduring the second worst humanitarian crisis in the world after Sudan, according to the United Nations.

More than 100,000 Afghans have returned home since neighboring Pakistan launched a new mass expulsion campaign in April.

More than 265,000 undocumented Afghans also returned from neighboring Iran between January and April, according to the International Organization for Migration (IOM).

US federal law permits the government to grant TPS to foreign citizens who cannot safely return home because of war, natural disasters or other “extraordinary” conditions.

But since taking office President Donald Trump has moved to strip the designation from citizens of countries including Haiti and Venezuela as part of his broader crackdown on immigration.


White House slams Episcopal Church’s refusal to resettle white South Africans

Updated 14 May 2025
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White House slams Episcopal Church’s refusal to resettle white South Africans

  • The Episcopal Church said it would end its refugee resettlement program with the US government rather than comply with orders to help resettle the white South Africans

WASHINGTON: The White House questioned Tuesday the humanitarian commitment of the influential Episcopal Church after it refused to comply with a federal directive to help resettle white Afrikaners granted refugee status by the Trump administration.
Trump ran on an anti-immigrant platform and essentially halted refugee arrivals in the United States after taking office, but made an exception for white Afrikaners despite South Africa’s insistence that they do not face persecution in their homeland.
On Monday, around 50 white South Africans arrived for resettlement in the United States, after Trump granted them refugee status as victims of what he called a “genocide.”
That claim — oft-repeated by Trump’s Pretoria-born ally, billionaire Elon Musk — has been widely dismissed as absurd, including by the South African government.
On Monday, the Episcopal Church said it would end its refugee resettlement program with the US government rather than comply with orders to help resettle the white South Africans.
In a statement, White House Deputy Press Secretary Anna Kelly criticized the decision as raising “serious questions about its  supposed commitment to humanitarian aid.”
She claimed white Afrikaners — who are primarily descendants of European colonizers and whose ethnic group dominated South African politics until apartheid was abolished in 1994 — had “faced unspeakable horrors.”
On Monday, the church had said it would wind up its refugee resettlement grant agreements — amounting to more than $50 million annually — with the US federal government rather than comply with Trump’s orders.
In a statement, the church’s presiding bishop was scathing in his criticism of the administration’s decision to grant the white South Africans refugee status.
“It has been painful to watch one group of refugees, selected in a highly unusual manner, receive preferential treatment over many others who have been waiting in refugee camps or dangerous conditions for years,” said Sean W. Rowe.
Under eligibility guidelines published by the US embassy, applicants for US resettlement must either be of Afrikaner ethnicity or belong to a racial minority in South Africa.
The Episcopal Church said that it could not comply with Trump’s order “in light of our church’s steadfast commitment to racial justice and reconciliation.”
It said its programs with the US federal government would be wound up by the end of the fiscal year, but that its work on refugee resettlement would continue, including supporting recently arrived refugees from around the world.