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Global Economic Officials Gather Amid Headwinds From Trump’s Trade War

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Treasury Secretary Scott Bessent will meet his international counterparts at a G7 finance ministers meeting in Canada.Top finance officials from the world’s wealthiest economies will begin gathering in Canada on Tuesday for meetings that are expected to be consumed by renewed fears of a global downturn set off by President Trump’s trade war.The summit of the Group of 7 finance ministers, a traditionally friendly gathering, is likely to be more fraught this year. The tariffs that Mr. Trump has imposed on American allies and adversaries have threatened to blunt global growth and inflame inflation. Europe, Japan and Canada have all been bearing the brunt of the Trump administration’s “America first” economic agenda.The tenor of the discussions could also be complicated by recent tension between the United States and Canada, the country hosting this year’s meetings and one that Mr. Trump has said he wants to annex.“I think it’s going to be awkward,” said Charles Lichfield, deputy director of the Atlantic Council’s GeoEconomics Center.The three days of meetings will include many of the recent topics of discussion, including support for Ukraine, concerns about China’s economic practices and headwinds facing the global economy. However, Mr. Trump’s trade tactics, which many economists view as the biggest threat to global economic stability, will dominate the discussions between Treasury Secretary Scott Bessent and his counterparts.Mr. Bessent, who skipped a gathering of the Group of 20 finance ministers in February, will appear at the international forum for the first time and at a particularly tenuous moment.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 Computer Chip Deals With Saudi Arabia and UAE Divide US Government

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    Big deals to sell chips to the U.A.E. and Saudi Arabia have divided the U.S. government over whether they could be remembered for shipping cutting-edge A.I. overseas.Over the course of a three-day trip to the Middle East, President Trump and his emissaries from Silicon Valley have transformed the Persian Gulf from an artificial-intelligence neophyte into an A.I. power broker.They have reached an enormous deal with the United Arab Emirates to deliver hundreds of thousands of today’s most advanced chips from Nvidia annually to build one of the world’s largest data center hubs, three people familiar with the talks said. The shipments would begin this year, with the vast majority of the chips going to U.S. cloud service providers and about 100,000 of them to G42, an Emirati A.I. firm.The administration revealed the agreement on Thursday in an announcement unveiling a new A.I. campus in Abu Dhabi supported by 5 gigawatts of electrical power. It would the largest such project outside the United States and help U.S. companies serve customers in Africa, Europe and Asia, the administration said. The details about the chips weren’t disclosed, and it’s not clear if they could still be subject to change.As Mr. Trump traversed the region in recent days, the United States also struck multibillion-dollar agreements to sell advanced chips from Nvidia and AMD to Saudi Arabia. The United States and Saudi Arabia are also still in discussions on a larger contract for A.I. technology, five people familiar with the negotiations said.The A.I. deals have caused people inside and outside the White House to wrestle with an unexpected question. Is the Trump administration, in its zeal to make deals in a region where Mr. Trump and his family have financial ties, outsourcing the industry of the future to the Middle East?The question speaks to divisions over A.I. policy that are rippling through the Trump administration. The deals were negotiated in the Middle East by David Sacks, the administration’s A.I. czar, and Sriram Krishnan, its senior policy adviser for A.I., who are both longtime venture capitalists. Leading figures in the A.I. industry, like Sam Altman of OpenAI and Jensen Huang of Nvidia, have also been involved in talks that have continued on the sidelines of the president’s trip in recent days.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

  • 125 Shares93 Views

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    Tariff Truce With China Demonstrates the Limits of Trump’s Aggression

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    President Trump’s triple-digit tariffs on Chinese products disrupted global trade — but haven’t appeared to result in major concessions from Beijing.President Trump’s decision to impose, and then walk back, triple-digit tariffs on Chinese products over the past month demonstrated the power and global reach of U.S. trade policy. But it was also another illustration of the limitations of Mr. Trump’s aggressive approach.The tariffs on Chinese goods, which the United States ratcheted up to a minimum of 145 percent in early April, brought much trade between the countries to a standstill. They caused companies to reroute business globally, importing less from China and more from other countries like Vietnam and Mexico. They forced Chinese factories to shutter, and brought some American importers to the verge of bankruptcy.The tariffs ultimately proved too painful to American businesses for Mr. Trump to sustain. Within weeks, Trump officials were saying that the tariffs the president had chosen to impose on one of America’s largest trading partners were unsustainable, and that they were angling to reduce them.Trade talks between the world’s largest economies in Geneva this weekend concluded with an agreement to reduce stiff levies on each other’s products by more than many analysts had anticipated. Chinese imports will face a minimum tax of 30 percent, down from 145 percent. China will lower its import duty on American goods to 10 percent from 125 percent. The two countries also agreed to hold talks to stabilize the relationship.It remains to be seen what agreements can be reached in future negotiations. But the talks this weekend, and the tariff chaos of the past month, did not appear to generate any other immediate concessions from the Chinese other than a commitment to keep talking. That has called into question whether the trade disruptions of the past month — which led many American businesses to cancel orders for Chinese imports, freeze expansion plans and warn of higher prices — were worth it.“The Geneva agreement represents an almost complete U.S. retreat that vindicates Xi’s decision to forcefully retaliate,” said Scott Kennedy, a China expert at the Center for Strategic and International Studies, referring to Xi Jinping, the Chinese leader.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

  • 150 Shares54 Views

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    Trump’s China Deal Frees Up Shipping. Will Goods Pour Into the U.S.?

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    The temporary lowering of tariffs may compel some U.S. businesses to order goods that they had held off buying after President Trump raised them to 145 percent.For weeks, Jay Foreman, a toy company executive, froze all shipments from China, leaving Care Bears and Tonka trucks piled up at Chinese factories, to avoid paying President Trump’s crippling 145 percent tariff.But as soon as his phone lit up at 4 a.m. on Monday alerting him that Mr. Trump was lowering tariffs on Chinese imports for 90 days, Mr. Foreman, the chief executive of Basic Fun, which is based in Florida, jumped out of bed and called his suppliers, instructing them to start shipping merchandise immediately.“We’re starting to move everything,” Mr. Foreman said. “We have to call trucking companies in China to schedule pickups at the factories. And we have to book space on these container ships now.”If other executives follow Mr. Foreman’s lead, a torrent of goods could soon pour into the United States. While logistics experts say global shipping lines and American ports appear capable of handling high volumes over the next three months, they caution that whiplash tariff policies are piling stress onto the companies that transport goods around the world.“This keeps supply chain partners in limbo about what’s next, and leads to ongoing disruption,” said Rico Luman, senior economist for transport, logistics and automotive at ING Research.After talks this weekend in Geneva, the Trump administration lowered tariffs on many Chinese imports to 30 percent from 145 percent. China cut its tariffs on American goods to 10 percent from 125 percent. If a deal is not reach in 90 days, the tariffs could go back up, though Mr. Trump said on Monday that they would not rise to 145 percent. Some importers may hold off on ordering from China, hoping for even lower tariffs later.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

  • 138 Shares66 Views

    in Economy

    Trump Suggests Openness to Slashing China Tariffs Ahead of Trade Talks

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    The president said reducing tariffs to 80 percent from the current 145 percent “sounds right,” as U.S. and Chinese negotiators prepare to meet in Switzerland.President Trump on Friday suggested that he was open to sharply reducing the tariffs that the United States has imposed on China, as American and Chinese negotiators prepare to meet in Switzerland this weekend for high-stakes trade talks.Trade tensions between the U.S. and China have roiled international markets and the global economy. The negotiations on Saturday and Sunday are intended to de-escalate the situation and set the stage for a broader trade pact between the two economic superpowers.In a post on social media, Mr. Trump said that an 80 percent tariff on China “seems right,” adding that it would be “up to Scott B,” an apparent reference to Treasury Secretary Scott Bessent. An 80 percent tariff would be a big drop from the 145 percent tariffs that Mr. Trump applied to Chinese imports in recent months, but would still be restrictive to trade between the two countries.While the Trump administration has been racing to strike trade deals with other countries, it has remained in a standoff with China. Earlier this week, the two sides had agreed to hold meetings in Geneva that will include Mr. Bessent; Jamieson Greer, the U.S. Trade Representative; and He Lifeng, China’s vice premier for economic policy.Mr. Bessent has argued that the tariffs and trade restrictions that the United States and China have levied are “unsustainable” and has urged Beijing to begin talks to address what the Trump administration views as unfair trade practices.Despite Mr. Trump’s affinity for imposing tariffs, in a separate post on Truth Social on Friday he made the case for open markets and called on China to expand access for American businesses.“CHINA SHOULD OPEN UP ITS MARKET TO USA — WOULD BE SO GOOD FOR THEM!!! CLOSED MARKETS DON’T WORK ANYMORE!!!” Mr. Trump wrote. More

  • 138 Shares114 Views

    in Economy

    U.S. and China to Hold First Trade Talks Since Trump’s Tariffs

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    Scott Bessent, the Treasury secretary, and Jamieson Greer, the United States trade representative, will discuss trade and economic matters with the officials this week.Top officials from the Trump administration will meet with their Chinese counterparts in Switzerland this week, the first formal meeting about trade between the United States and China since President Trump raised tariffs on Chinese imports to triple-digit levels last month.Scott Bessent, the Treasury secretary, and Jamieson Greer, the United States trade representative, plan to meet with Chinese officials during a trip to Geneva, where they will discuss trade and economic matters, according to separate announcements from the office of the trade representative and the Treasury Department.A spokesperson for the Chinese Ministry of Foreign Affairs said that He Lifeng, the vice premier for economic policy, would visit Switzerland from Friday to Monday and hold talks with Mr. Bessent. Mr. Bessent said on Fox News that the talks would be held on Saturday and Sunday.The meeting could help to defuse an economically damaging trade standoff that has persisted between the world’s largest economies for a month. In early April, Mr. Trump escalated tariffs on Chinese exports to a minimum of 145 percent, to punish Beijing for retaliating against his earlier levies.While both sides appear to be interested in reducing those tariffs, neither has wanted to make the first move. It remains unclear how quickly the United States and China might strike any kind of agreement, or what its contents could be.The Trump administration has criticized China for its role in bringing fentanyl and ingredients to make the drug to the United States, as well as a bevy of unfair trade practices. Mr. Trump and his advisers have also censured China for failing to stick to the terms of a trade deal the president negotiated in his first term. China, in return, has called Mr. Trump’s tariffs “illegal and unreasonable.”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

  • 175 Shares157 Views

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    U.S. and China Dig In on Trade War, With No Plans for Formal Talks

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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

  • 163 Shares162 Views

    in Economy

    Why the Economic Disruption From Trump’s Tariff War Will Be Hard to Reverse

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    The president’s turnover of the economic order has unleashed changes that could prove lasting, because other countries will adjust.President Trump has made clear his intent to smash the reigning global economic order. And in 100 days, he has made remarkable progress in accomplishing that goal.Mr. Trump has provoked a trade war, scrapped treaties and suggested that Washington might not defend Europe. He is also dismantling the governmental infrastructure that has provided the know-how and experience.The changes have been deep. But the world is still churning. Midterm elections in two years could erode the Republican majority in Congress. And Mr. Trump’s reign is constitutionally mandated to end in four years. Could the next president come in and undo what the Trump administration has done?As Cardinal Michael Czerny, a close aide to Pope Francis, said of the Catholic Church: “There is nothing that we have done over 2,000 years that couldn’t be rolled back.”The same could be said of global geopolitics. Yet even at this early stage, historians and political scientists agree that on some crucial counts, the changes wrought by Mr. Trump may be hard to reverse.Like the erosion of trust in the United States, a resource that took generations to build.“The MAGA base and JD Vance will still be around long after Trump’s gone,” said Ian Goldin, professor of globalization and development at the University of Oxford. No matter who occupies the White House next, the conditions that propelled the “Make America Great Again” movement — widening inequality and economic insecurity — remain. For the rest of the world, there is still a worry, he said, that there could be “another Trump in the future.”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

  • 150 Shares98 Views

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    In Trade War Clash With Trump, China Refuses to Take the Bait

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    The Trump administration has been saying that the two countries are engaged in talks to resolve the dispute, but Beijing asserts that no such discussions are happening.If the trade war between China and the United States is a game of high-stakes brinkmanship, it is currently a game that Beijing is not willing to play.Faced with growing claims by President Trump and administration officials that the two countries are engaged in talks and that a deal could be reached in a matter of weeks, China’s Foreign Ministry pushed back forcefully on Friday by posting on X: “China and the U.S. are NOT having any consultation or negotiation. The U.S. should stop creating confusion.”The post came hours after a foreign ministry spokesman, Guo Jiakun, said the United States was “misleading the public.” A day earlier, Mr. Guo called the rumors of talks “fake news.”The response was the latest sign that China’s top leader, Xi Jinping, intends to hold firm in his standoff with Mr. Trump, sensing that his position is strengthening. Beijing is betting that it can stomach the pain of a trade war better than the Trump administration can because of U.S. political pressure and volatility on Wall Street, analysts say.“The Chinese are not eager to climb down the ladder,” said Yun Sun, the director of the China program at the Stimson Center in Washington. “They see Trump as wanting to climb down and are happy to let him stew in his own juice.”Ms. Sun said Beijing will not come to the negotiation table without any U.S. concessions or a good-will gesture. That could include scaling back tariffs, or making clear that Mr. Trump is reaching out to Mr. Xi first.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