Donald Trump Tariff Live Updates: 'Certain major power is obsessed with idea that might makes right,' China FM apparent dig at US

The United States and Saudi Arabia on Tuesday signed a massive arms agreement, during a series of deals finalised between President Donald Trump and Crown Prince Mohammed bin Salman in Riyadh.

"The United States and Saudi Arabia signed the largest defence sales agreement in history -- nearly $142 billion, providing Saudi Arabia with state-of-the-art warfighting equipment," the White House said in a statement.

Saudi company DataVolt "is moving forward with plans to invest $20 billion in AI data centres and energy infrastructure in the United States", the White House added, as the oil-rich kingdom seeks a leading role in the technology.

China is bolstering international partnerships to counter President Donald Trump's trade policies, demonstrating solidarity with Latin American leaders following a 90-day pause in the US-China tariff dispute.

As the world's second-largest economy, China has established itself as a dependable trading and development ally, contrasting with the unpredictability stemming from Trump's tariff increases and related policies.

Following discussions in Geneva, Switzerland, both nations announced a breakthrough regarding tariffs, agreeing to reduce substantial import duties for a 90-day negotiation period.

Beijing's frustration regarding the trade conflict remains evident. In his address to Chinese and Latin American officials on Tuesday, Xi Jinping emphasised that trade wars benefit no one, stating that "bullying or hegemonism only leads to self-isolation."

After easing tensions with the US, Xi expressed China's willingness to collaborate with Latin American nations amid rising political divisions and increasing unilateralism and protectionism.

"There are no winners in tariff wars or trade wars," Xi reiterated, echoing China's consistent response to Trump's trade measures.

During Trump's first presidential term, when he increased tariffs on Chinese goods, China responded by diversifying its agricultural imports, including soybeans and beef, from American suppliers. This strategy has proved advantageous for Brazil and other Latin American nations.

At a forum for Chinese and Latin American nations in Beijing on Tuesday, China's foreign minister made critical remarks seemingly directed at the United States, just a day following bilateral announcements of significant reciprocal tariff reductions. Wang Yi stated that "a certain major power is obsessed with the idea that might makes right".

He further asserted that this nation is "using tariffs as a weapon to bully other countries", whilst encouraging forum attendees to "join hands to uphold our legitimate and lawful rights and interests".

Honda Motor of Japan projected a significant 70 percent reduction in net profit for fiscal year 2025-26, primarily due to the impact of US trade tariffs on the global automotive sector.

This follows Toyota's earlier prediction of a 35 percent annual net profit decline, attributed to similar tariffs and additional factors.

The company anticipates a net profit of 250 billion yen ($1.7 billion) for the period ending March 2026.

The organisation warned about negative effects on operating profit from "tariff impact and recovery efforts", estimating costs around 450 billion yen throughout the year.

President Donald Trump's recent implementation of a 25 percent duty on imported vehicles, aimed at boosting US auto industry, has severely affected Japanese automobile manufacturers.

CEO Toshihiro Mibe stated on Tuesday that varying tariff policies across nations have substantially influenced their operations, making future projections challenging.

Mibe indicated that Honda would assess US tariff implications on supply chains before making considered decisions regarding price adjustments.

The previous financial year saw Honda, Japan's second-largest automaker, record net profits of 835 billion yen, representing nearly 25 percent decrease year-on-year, falling short of its February projection of 950 billion yen.

Mibe noted reduced automobile sales volumes, particularly in China and ASEAN regions.

He also acknowledged impact from increased North American EV sales incentives, whilst highlighting growth in hybrid vehicle sales.

Industry analysts suggest Honda might be better positioned than other Japanese competitors to manage Trump's tariff measures.

India proposed to impose retaliatory duties under the WTO (World Trade Organisation) norms against the US over American tariffs on steel and aluminium in the name of safeguard measures.


"The safeguard measures would affect USD 7.6 billion imports into the US of the relevant products originating in India, on which the duty collection would be USD 1.91 billion," a WTO communication said.

The international economic landscape won't revert to its state of January 19, 2025, which preceded Trump's presidency. Despite fluctuating tariff adjustments, the administration has consistently indicated that most imported goods will incur a minimum tax of approximately 10%.

Trump has established 10% as the standard rate. Following the market turbulence caused by his April 2 "Liberation Day" tariff announcement, he granted most nations a 90-day negotiation window at this rate. The recent agreement with the United Kingdom maintained this 10% threshold. Additionally, the new 30% duty on Chinese imports comprises the standard 10% plus an additional 20% specifically related to China's involvement in fentanyl.

"We have many deals coming down the line," Trump said on Friday. "But we always have a baseline of 10%."

Nevertheless, Trump has suggested possible variations. Industry-specific tariffs remain at 25% for automobiles, steel and aluminium, whilst he has indicated that pharmaceutical imports will soon face similar duties.
On Monday, Trump instructed House Speaker Mike Johnson and Senate Majority Leader John Thune to factor in tariff income when calculating funding options for their proposed income tax reductions.

The temporary reduction in tariffs following discussions in Switzerland brought momentary relief to global markets. The US administration's decision to lower import duties on Chinese goods from 145% to 30%, whilst China reduced its reciprocal taxes on American products from 125% to 10%, marked a significant shift in the ongoing trade negotiations.

The US President hailed this de-escalation as a success, indicating his intention to engage in discussions with President Xi Jinping regarding the preservation of economic ties between the two largest global economies.

However, the current tariff levels remain higher than those at the beginning of the administration. The fluctuating nature of trade policies, alternating between confrontational measures and conciliatory gestures, has created an environment where business leaders, market investors and consumers may remain cautious about making significant financial commitments.

Only when various countries work together can they maintain world peace, stability, and promote global development, Xi Jinping said after the US-China reached a new trade deal. This came after holding the two-day meeting, facilitated by the Swiss government.

After the US-China reached an agreement where they drastically reduced tit-for-tat tariffs for 90 days, Xi Jinping said, "Bullying & tyranny will only isolate oneself." He also said that there are no winners in tariff and trade wars.

Explaining that many of the tariffs that he imposed remain in place, Trump said talks would be focused in part on “opening up” China to American businesses. He said he expected to talk to President Xi Jinping later this week, but putting a full deal on paper would take a while.

The outcome of the frenzied weekend of negotiations in Switzerland brought tariff rates close to where they were before Trump ratcheted them higher on April 2, which he billed as “Liberation Day”. However, the talks did not appear to yield any meaningful concessions beyond an agreement to continue discussions.

“We concluded that we have a shared interest,” said treasury secretary Scott Bessent at a news conference in Geneva where US and Chinese officials met over the weekend. “The consensus from both delegations is that neither side wanted a decoupling,” he said.

China said it will suspend or revoke countermeasures adopted in retaliation for escalating tariffs. In early April, the Chinese govt had ordered restrictions on the export of rare earth metals and magnets, critical components used by many industries, including automakers, aerospace manufacturers and semiconductor firms.
Bessent said the two countries may also discuss purchase agreements of American goods by Chinese govt.

The agreement breaks an impasse that had brought much trade between China and US to a halt. Many American businesses had suspended orders, holding out hope the two countries could strike a deal to lower the tariff rates. Economists have warned the dispute will slow global growth, fuel inflation and create product shortages, potentially tipping US into a recession. “We came with a list of problems we were trying to solve, and I think we did a good job on that,” Bessent said.

Global markets jumped on the announcement. The two countries said the ongoing negotiations will involve Bessent; Jamieson Greer, the US trade representative; and He Lifeng, China’s vice-premier for economic policy, who led the talks for the Chinese.

Global markets jumped on the announcement. Bessent said the Chinese “understood the magnitude” of the fentanyl crisis in US and that there is a “positive path forward”.Greer said the talks were underscored by “mutual understanding and mutual respect”, but noted China was the only country to retaliate after Trump imposed reciprocal tariffs on dozens of countries last month.

Stock markets, currency values and crude oil prices surged on Monday following a 90-day ceasefire announcement in the US-China trade dispute.

The primary US stock indices showed strong gains at opening and maintained stability throughout trading before closing significantly higher. The S&P 500 concluded with a 3.3 percent increase.

"Stocks are surging, safe havens are rapidly declining, and expectations for Federal Reserve rate cuts have been dramatically scaled back," said Kathleen Brooks, research director at traders XTB.

"The market was not expecting the big change to US and China tariff rates, which is very positive for the outlook for the US and the global economy," she added.
The Hong Kong market finished three percent higher in response.

In European trading, Paris led with a 1.4 percent gain, whilst Frankfurt achieved a new peak before relinquishing most advances.

French luxury conglomerate LVMH, which produces Louis Vuitton handbags, emerged as Paris's strongest performer with a seven percent rise.

The US dollar strengthened against major currencies including the euro, yen and pound sterling, whilst oil values showed substantial increases.

Market participants have experienced significant volatility since April 2, when US President Donald Trump introduced tariffs affecting global trade partners.

The US-China trade deal has increased the headache for Indian negotiators, who are once again headed to Washington DC to discuss the proposed bilateral trade deal.While signalling movement towards a deal between the world's two largest trading nations, the 90-day truce, which will see them slash tariffs by 115 percentage points, opens the door for the flow of goods from China. As a result, some of the interest in Indian products is bound to come down as supply lines will reopen for 90 days, apart from some front-loading of consignments in case the pause is not extended.

Wall Street stocks finished solidly higher Monday, cheering an announcement that the United States and China sharply de-escalated a trade war that has rattled global markets.

The Dow Jones Industrial Average jumped 2.8 percent to close at 42,410.10.

The broad-based S&P 500 rallied 3.3 percent to 5,844.19, while the tech-rich Nasdaq Composite Index rocketed 4.4 percent to 18,708.34.

Global markets surged on Monday following the announcement of a 90-day ceasefire in the trade dispute between China and the United States. Both economic powerhouses agreed to temporarily reduce most reciprocal tariffs, addressing concerns from economists about potential recession risks and possible retail supply disruptions in the United States.

Trading showed significant gains, with the S&P 500 rising 3.1% during afternoon trading, positioning itself within 5% of its February peak. The index has shown strong recovery since its recent 20% decline, buoyed by optimism surrounding President Donald Trump's potential tariff reductions following successful international trade negotiations. The S&P 500 has now exceeded its April 2 level, known as "Liberation Day," when Trump's announcement of widespread tariffs sparked concerns about economic downturn.

The Dow Jones Industrial Average registered an increase of 1,079 points, or 2.6%, at 1:53 p.m. Eastern time, whilst the Nasdaq composite demonstrated a 4.2% gain.
The positive market response extended beyond equities, following what analysts described as a "best case scenario" for US-China tariff discussions, with reductions exceeding investor expectations.

US stock markets opened with a strong rally Monday morning as investors welcomed a surprise announcement from the United States and China suspending most of their tariff hikes for 90 days, in a move aimed at de-escalating trade tensions and giving space for further negotiations.

As of 9:34 a.m. ET, the Dow Jones Industrial Average surged 959.9 points, or 2.33%, to 42,209.28 shortly after the open. The Nasdaq Composite soared 3.64%, adding 651.8 points to reach 18,580.72, driven by tech sector strength. The S&P 500 rose 2.61%, or 147.66 points, to 5,807.57.The market reaction came after a joint statement from Washington and Beijing announced the temporary suspension of most tariffs introduced during the prolonged trade war initiated under US President Donald Trump. The US agreed to slash tariffs on Chinese goods to 30% from highs of 145%, while China said it would reduce its tariffs on American imports to 10% from 125%. The agreement followed “substantial progress” during weekend talks in Geneva.

Tech stocks led the rally, with American semiconductor companies—deeply reliant on Chinese supply chains—posting notable early gains. ON Semiconductor, Micron, and Broadcom each jumped between 6% and 8%, while Nvidia added 4.8%. Read full story

US stock index futures rose sharply on Monday after the United States and China agreed to scale back tariffs, easing fears of an escalating trade war that had weighed heavily on global markets in recent weeks.

US Treasury Secretary Scott Bessent, following talks with Chinese officials in Geneva, announced that the two nations have agreed to a 90-day pause on additional trade measures.

During this period, tariffs will be reduced by over 100 percentage points, bringing them down to 10%."This marks a pivotal moment in global trade dynamics," said Aaron Hill, chief analyst at FP Markets. "However, the 90-day timeframe indicates these tariff cuts are a negotiation tactic rather than a permanent resolution, creating uncertainty about long-term trade policies."

The United States and China announced Monday an agreement to drastically reduce tit-for-tat tariffs for 90 days, de-escalating a trade war that has roiled financial markets and raised fears of a global economic downturn.
After their first talks since US President Donald Trump launched his trade war, the world's two biggest economies agreed in a joint statement to bring their triple-digit tariffs down to two figures and continue negotiations.

US Treasury Secretary Scott Bessent described the weekend discussions with Chinese Vice Premier He Lifeng and international trade representative Li Chenggang as "productive" and "robust".

"Both sides showed a great respect," Bessent told reporters.

Trump had imposed duties of 145 percent on imports for China last month -- compared to 10 percent for other countries in the global tariff blitz he launched last month.

Beijing hit back with duties of 125 percent on US goods.

The United States agreed to lower its tariffs on Chinese goods to 30 percent while China will reduce its own to 10 percent.

China hailed the "substantial progress" made at the talks, which were held at the discreet villa residence of Switzerland's ambassador to the United Nations in Geneva.

"This move... is in the interest of the two countries and the common interest of the world," the Chinese commerce ministry said, adding that it hoped Washington would keep working with China "to correct the wrong practice of unilateral tariff rises".

Stock markets and the dollar, which tumbled after Trump unleashed his global tariff blitz in April, rallied after the announcement. (AFP)

US trade chief announced that US would cut tariffs on China to 30% while China will lower those on US to 10%.

Amidst talks of a trade deal, the United States of America and China have announced a 90 days suspension of part of their tariffs, according to a joint statement. US Treasury Secretary Scott Bessent announced that the United States and China have agreed to implement a 90-day suspension of tariffs, alongside a commitment to significantly reduce existing tariff rates.Bessent confirmed that both nations would reciprocally decrease their tariffs by 115%.

US and China announce suspending a part of their tariffs for 90 days, in a joint statement.

The United States will suspend livestock imports from Mexico for 15 days over a pest control row between the major trade partners, officials said Sunday.
US President Donald Trump's administration warned late April that Washington would introduce restrictions unless Mexico acted to help control a screwworm fly outbreak, whose flesh-eating larvae can kill cattle.

Mexican Agriculture Minister Julio Berdegue said Sunday his US counterpart Brooke Rollins had told him "the border would be closed to the export of livestock for 15 days to review the joint strategy against the screwworm."

"We do not agree with this measure, but we are confident that in a shorter time we will be reaching an agreement," Berdegue added on X.

Rollins said in a statememt: "Once we see increased surveillance and eradication efforts, and the positive results of those actions, we remain committed to opening the border for livestock trade."

"This is not about politics or punishment of Mexico, rather it is about food and animal safety," she added.

After two days of trade talks in Switzerland, US and Chinese officials reported encouraging signs of progress in easing tensions between the world's two largest economies. US Treasury Secretary Scott Bessent described the discussions as productive, noting “substantial progress,” although he provided few specifics, promising more detail at a forthcoming briefing. US Trade Representative Jamieson Greer suggested an agreement had been reached, highlighting the speed of the negotiations as evidence that the differences may not have been as significant as once thought. Still, he reiterated the Trump administration's focus on reducing the US trade deficit with China, which hit a record $263 billion last year.

China characterised the talks as "candid, in-depth and constructive," with Vice Premier He Lifeng confirming a consultation mechanism had been established for ongoing discussions. A joint statement is expected soon. While President Trump praised the talks as a step toward a possible "total reset" of tariffs, Chinese state media maintained a more cautious stance, vowing not to compromise on core principles.

With tariffs currently exceeding 100% on both sides, a de-escalation would help stabilise global markets. Though a major breakthrough remains uncertain, even minor tariff reductions could mark a crucial step towards restoring confidence and rebalancing trade relations.

Treasury Secretary Scott Bessent thanked the Swiss government for providing a productive venue, attributing the setting to the success of the talks.

It also hailed 'positive outcome' of the US-China trade talks.

Before the talks, President Trump posted on social media that he was open to lowering tariffs on China from 145 per cent to 80 per cent, stating the decision was "up to Scott B," referring to Treasury Secretary Scott Bessent.

While the agreement has been confirmed, specific details about the trade deal have not yet been made public.

The senior American trade negotiator reported significant progress in addressing differences between the world's largest economies after concluding two days of discussions in Switzerland, following President Donald Trump's imposition of high tariffs and China's countermeasures.

US Treasury Secretary Scott Bessent indicated on Sunday that the weekend discussions yielded considerable advancement, though specific details were sparse. He stated that a comprehensive briefing would be provided the next day.

The Chinese delegation did not issue any immediate response regarding the discussions.

Bessent displayed more restraint in his evaluation of the proceedings compared to his colleague, US Trade Representative Jamieson Greer. "It's important to understand how quickly we were able to come to agreement, which reflects that perhaps the differences were not so large as far as maybe thought," said Greer, though he did not specify which agreement he was discussing.

Chinese Vice Premier He Lifeng on Sunday hailed what he called "important progress" in trade talks with the United States, at the end of a weekend of closed-door discussions in Switzerland.

Speaking to reporters in Geneva, He said the atmosphere of the talks with US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer had been candid, in-depth, and substantive, echoing similar language from the US delegation earlier in the day.

The two countries will put out a joint statement on the talks on Monday, May 12, He said.

He Lifeng, Chinese Vice Premier, announced on Sunday that during discussions in Geneva, China and the United States reached an agreement to establish a "consultation mechanism" to address trade-related tensions.

He disclosed to journalists in Geneva that discussions with US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, conducted behind closed doors, led to an accord on "establishing a consultation mechanism".

Li Chenggang, who serves as China's international trade representative, clarified that this mechanism would facilitate "regular and irregular communications related to trade and commercial issues".