Donald Trump Tariffs News Live Highlights: Tariff talks with India going great, we'll have a deal, says Trump

President Donald Trump on Wednesday admitted that his tariff policies could lead to fewer and more expensive products for American consumers—citing children having “two dolls instead of 30”—but maintained that China would bear the brunt of the trade war’s impact.

Amid growing concerns of an economic slowdown, following a report showing the US economy contracted in the first quarter, Trump sought to calm recession fears, insisting the tariffs were necessary and effective. He shifted blame for any economic strain onto his Democratic predecessor, Joe Biden, and told his Cabinet that China was facing “tremendous difficulty” as its factories struggled due to reduced business, claiming the US was not reliant on imports from the global manufacturing giant.

“You know, somebody said, ‘Oh, the shelves are going to be open,’” Trump continued, offering a hypothetical. "Well, maybe the children will have two dolls instead of 30 dolls. So maybe the two dolls will cost a couple bucks more than they would normally.”

Amid growing concerns over a sharp economic decline following the announcement of US tariffs, Donald Trump took to his platform Truth Social to distance himself from the downturn, blaming former US President Joe Biden for the state of the economy.

In a social media post on Truth Social, Trump asserted that the recent economic troubles had “NOTHING TO DO WITH TARIFFS” and instead pointed fingers at Biden’s legacy.

US GDP contracts: The American economy saw an unexpected contraction during the first quarter of 2025, primarily attributed to increased imports as businesses and individuals built up inventories before US President Donald Trump's comprehensive tariffs took effect.

According to figures released by the US Commerce Department on Wednesday, the GDP of America's economy declined at an annual rate of 0.3 percent in the first quarter, following a 2.4 percent growth in the last quarter of 2024. This performance fell considerably short of market expectations, which had predicted a 0.4 percent growth, as reported by Briefing.com.

Amazon came under fire from US President Donald Trump following a news report that the company is adding tariff pricing to its site. The report claimed that Amazon planned to start showing how much of each product's cost derived from tariffs “right next to” its total listed price, citing an anonymous source familiar with the matter.

This news quickly drew the ire of President Trump. Following the news report, an upset President Donald Trump personally called Amazon founder Jeff Bezos to complain about the online retail giant's reported plan of was considering displaying the U.S. tariff costs on its product listings.

Tokyo's tariffs envoy departed Wednesday for a second round of negotiations in Washington, where Japan could offer concessions such as tweaking vehicle import procedures to secure relief from Donald Trump's trade levies, reported AFP.

Ryosei Akazawa may also reportedly offer to buy more US corn and soybeans, or continue discussions on developing liquefied natural gas (LNG) fields in Alaska.

Japan, a key US ally and its biggest investor, is subject to the same 10 percent baseline tariffs imposed on most countries plus steeper levies on cars, steel and aluminium.

Trump also announced "reciprocal" tariffs on Japan of 24 percent, but later put them on pause for 90 days along with those on other nations except China.

China's manufacturing activity shrank in April after growing at its highest rate in a year the previous month, official data showed Wednesday, as Beijing fights an intensifying trade war with the United States.

Punishing US tariffs that have reached 145 percent on many Chinese products came into force in April, while Beijing has responded with fresh 125 percent duties on imports from the United States.

President Donald Trump signed a pair of executive orders Tuesday that walked back some tariffs for carmakers, removing levies that Ford, General Motors and others have complained would backfire on U.S. manufacturing by raising the cost of production and squeezing their profits.

The changes will modify Trump's tariffs so carmakers that pay a 25% tariff on auto imports are not subject to other levies, for example on steel and aluminum, or on certain imports from Canada and Mexico, according to the orders. However, the rules do not appear to protect automakers from tariffs on steel and aluminum that their suppliers pay and pass on, reported New York Times.

Amid ongoing ceasefire violations along the Line of Control (LoC) for the sixth consecutive day following the Pahalgam terror attack, there has been a surge in cyberattacks originating from Pakistan. Pakistan-based hackers targeted publicly accessible welfare and educational websites linked to the Indian armed forces, attempting to deface pages and extract personal data. However, authorities quickly responded, isolating and neutralizing the threats to prevent further damage.

US President Donald Trump signed an executive order aimed at easing the economic burden on automakers by eliminating overlapping tariffs. Under the new directive, companies will no longer be subject to both a 25% levy on imported vehicles and a separate 25% tariff on steel or aluminum. A commerce department official said the move is designed to provide relief to the auto industry and allow time for shifting supply chains back to the United States.

US President Donald Trump expressed optimism about ongoing trade discussions with India, saying the talks were progressing well and he expected a deal to be reached, Reuters reported. Talks with India on tariffs were coming along great, and he thinks the two countries will reach a deal, he said.

Speaking to reporters outside the White House, Trump also mentioned plans to visit Africa and noted his intention to engage with Australian officials soon.

The International Monetary Fund (IMF) on Tuesday warned that the newly imposed 44% tariff by the Trump administration on Sri Lankan exports to the US could have a major economic impact, particularly on the country’s key apparel and rubber sectors. Speaking at a virtual press conference from Washington, IMF mission chief Evan Papijorju said the Fund is open to adjusting the implementation of Sri Lanka’s Extended Fund Facility (EFF) to account for the potential fallout.

China issued a fiery response, condemning the United States' global trade practices, accusing Washington of “bullying”, “deception” and economic coercion, as tensions over tariffs continue to escalate.

Treasury Secretary Scott Bessent said Tuesday that the Trump administration is “very close” to finalising a trade agreement with India.

Speaking at a press briefing alongside White House Press Secretary Karoline Leavitt, Bessent noted that negotiations with India have been relatively smooth, attributing it to what the administration views as “high non-tariff trade barriers” on the Indian side, reported CNN.

While Bessent did not specify a date for the formal announcement, he had previously indicated that a deal could be unveiled within the next two weeks.

The Treasury Secretary also reported progress in ongoing trade discussions with Japan and South Korea. Regarding South Korea, Bessent expressed confidence that the country's presidential election scheduled for June is unlikely to hinder the timeline for a potential agreement.

As part of ongoing discussions on the India-US Bilateral Trade Agreement, representatives of India’s Department of Commerce and the Office of the US Trade Representative met in Washington, DC from 23-25 April 2025. During the meetings in Washington, DC, the team had fruitful discussions on wide-ranging subjects covering tariff and non-tariff matters. The team discussed the pathway for concluding the first tranche of the mutually beneficial, multi-sector Bilateral Trade Agreement by Fall of 2025, including through opportunities for early mutual wins. While productive Sectoral expert level engagements have taken place through the virtual format, in-person Sectoral engagements are planned from end May," ministry of commerce and industry said on Tuesday.

US Treasury Secretary Scott Bessent has said that India is likely to be among the first countries to finalise a bilateral trade agreement with the US to avert reciprocal tariffs by President Donald Trump. Bessent made these remarks on Monday during an interview with CNBC's Squawk Box' to discuss the latest developments on President Trump's trade negotiations with other countries.
"Negotiations with our Asian trading partners are going very well.

Vice President (JD) Vance was in India last week and talked about substantial progress. I have mentioned that the negotiations with the Republic of Korea have gone very well. And I think we've had some very substantial negotiations with our Japanese allies," Bessent said.

Since President Trump's announcement that he would keep in place 10 per cent across-the-board tariffs but pause for 90 days more aggressive levies against individual trading partners, the US has made progress in negotiations, Bessent said, singling out India for a potential deal in coming days among 15 to 18 "important trading relationships" that are subject of negotiations, CNBC reported.

"We've had many countries come forward and present some very good proposals, and we're evaluating those," he said.

"I would guess that India would be one of the first trade deals we would sign. So watch this space," Bessent added.

Bessent also put the responsibility for reaching a trade agreement on China.

Canada's newly-elected Prime Minister Mark Carney said his country should "never forget the lessons" of the United States's "betrayal," in a stark rebuke of President Donald Trump, after his Liberal party won control of parliament.

"We will win this trade war," Carney told cheering supporters in Ottawa, while warning of "challenging" days ahead brought on by Trump's tariffs and annexation threats.

"We are over the shock of the American betrayal, but we should never forget the lessons," Carney said.

China on Tuesday blamed US tariffs for Beijing's decision to stop accepting new aircraft from aviation giant Boeing, saying the levies had "disrupted the international air transport market".

"The United States' wielding of tariffs has severely impacted the stability of the global industrial chain and supply chain," China's commerce ministry said in a statement.

"Relevant Chinese airlines and Boeing in the United States have suffered greatly," a spokesperson said.

New US tariffs have reached 145 percent on many Chinese products, while Beijing has responded with fresh 125 percent duties on imports from the United States.

The Trump administration said it plans to announce measures as early as Tuesday to ease the impact of tariffs on imported cars and car parts to give automakers more time to relocate production to the United States.

Tariffs of 25% on imported vehicles and on auto parts will remain in place. But the tariffs will be modified so that they are not "stacked" with other tariffs, for example on steel and aluminum, a White House spokesperson said. Automakers will not have to pay tariffs on those metals, widely used in automobiles, on top of the tariffs on cars and parts.

In addition, automakers will be reimbursed for some of the cost of tariffs on imported components. The reimbursement will amount to up to 3.75% of the value of a new car in the first year, but will be phased out over two years, the spokesperson confirmed.

A 25% tariff on imported cars took effect April 3. On Saturday, the tariffs are set to be extended to include imported parts.

American sourcing firms and exporters in China are approaching Indian companies to supply goods to the US as high tariffs imposed by Washington are making it difficult for them to ship directly to America, apex exporters' body FIEO said on Monday. The US has imposed 145 per cent tariffs on Chinese goods entering the American market. For India, the duty is just 10 per cent.

Federation of Indian Exporter Organisations (FIEO) Director General Ajay Sahai said US sourcing firms in China are in touch with domestic manufacturers through diplomatic channels to buy goods from India and export to America to bypass the high tariffs.

"We also held an online meeting with a big US firm. Huge export opportunities are there for Indian exporters due to high import duties imposed by the US on China," he said.

Besides, he said, Chinese manufacturer exporters from various sectors like electronics, hand tools and home appliances are also reaching out to Indian traders.

Asian markets inched higher in cautious trading on Monday as investors watched to see what may come of negotiations over US President Donald Trump’s tariffs.

US futures fell and oil prices were little changed.

Shares in China fell despite more efforts by Beijing to boost the economy, as uncertainty persisted over the status of any talks between Washington and Beijing.

The president says he’s actively negotiating with the Chinese government on tariffs — while the Chinese and US Treasury Secretary Scott Bessent have said talks have yet to start.

The current global tariff environment notwithstanding, India is expected to stay competitive due to its vast domestic market, scale advantages, and focus on innovation, Union Minister Jyotiraditya Scindia has said asserting that seen even from the lens of a comparative matrix of tariffs vis-a-via other nations, India holds a more favourable position. In a recent interview to PTI, Scindia - who is the Minister for Communications as well as Development of North Eastern Region (DoNER) -noted that given that other nations too face varying levels of tariffs, India will likely emerge "fiercely and much more competitive" across numerous products than before.

The lucrative domestic market has drawn global multinational companies to set up a significant presence here, he said and cited the strong pace of India's economic growth and New Delhi's policy push on manufacturing and innovation.

"So I do believe that irrespective of the prevailing environment of tariffs, India will continue to be competitive because she has economies of scale behind her because innovation comes along with that economies of scale to be able to cater to such a large market. And therefore, even in comparison with other nations, India will remain to be competitive," the minister said.

China's leaders are downplaying the potential impact from US President Donald Trump's trade war, saying they have the capacity to protect jobs and limit damage from higher tariffs on Chinese exports. The briefing Monday by several senior officials of different government ministries appeared aimed at shoring up confidence with promises of support for companies and the unemployed, easier lending conditions and other policies to counter the impact of combined tariffs of up to 145% on US imports from China.

It followed a meeting of China's powerful Politburo last week that analysts said had focused on ways to counter keep growth on track despite slowing exports.

"Chinese policymakers are on heightened standby mode," Louise Loo, lead economist at Oxford Economics said in a a report. She noted that the policies were similar to earlier pronouncements.

Uncertainty persists over the status of exchanges, if any, between the White House and Chinese leader Xi Jinping.

Trump said last week that he's actively negotiating with the Chinese government on tariffs - while US Treasury Secretary Scott Bessent said talks have yet to start.

Singapore's deputy prime minister said the city-state is negotiating concessions for pharmaceutical exports to the United States after a call with US Commerce Secretary Howard Lutnick.

Gan Kim Yong, who is also the trade minister and helms the Singapore Economic Resilience Taskforce, told reporters Sunday that pharmaceuticals make up more than 10 percent of the city state's exports to the United States, according to the Straits Times.

Gan said he had a call with Lutnick on Friday.

"While the US is not prepared to lower its 10 percent baseline tariff, we agreed to explore how we could deepen our economic links positively and we will continue to discuss the practical way forward," Gan wrote on his LinkedIn page.

"I welcomed Secretary Lutnick to visit Singapore, and look forward to further developing our trade and investment partnership with the US."