World
Trump touts ‘progress’ in Japan trade talks, as uncertainty roils stocks
Wall Street closes sharply lower as US Federal Reserve chair warns tariffs could lead to slower growth, higher inflation.
United States President Donald Trump has touted “big progress” in trade talks with Japan after making an unexpected intervention in the negotiations, as uncertainty caused by his sweeping tariffs continues to roil stock markets.
Trump made his comments on Wednesday after making the surprise decision to sit in on negotiations between his administration and Japanese officials in Washington, DC.
“A Great Honor to have just met with the Japanese Delegation on Trade. Big Progress!” Trump wrote on Truth Social after the talks, which included US Treasury Secretary Scott Bessent, US Commerce Secretary Howard Lutnick and Economic Revitalization Minister Ryosei Akazawa.
Akazawa said after the meeting that Trump wanted to reach a deal before the end of his 90-day pause on his “reciprocal” tariffs, with the Japanese hoping to see the agreement sealed “as soon as possible.”
Japanese Prime Minister Shigeru Ishiba said the negotiations would not be easy, but the initial rounds of talks had “created a foundation for the next steps”.
Like dozens of other US trade partners, Japan has been hit with a 10 percent baseline tariff in addition to duties of 25 percent on cars, steel and aluminium, which rank among the East Asian country’s top exports.
Japan, a top US security ally and its fourth-largest trade partner, is also facing a targeted 24 percent “reciprocal” tariff under Trump’s “liberation day” trade measures, nearly all of which have been paused until July 9.
“Japan’s industry is so closely integrated in the US economy that everyone is very concerned about the trade talks,” Martin Schulz, chief policy economist at Fujitsu in Tokyo, told Al Jazeera.
“Although there cannot be winners in a trade war, we are also quite optimistic that agreeable results can be achieved. Japan is the largest investor in the US and interested in investing more.”
“If both economies can be kept on a growth track, higher imports from the US become possible,” Schulz added.
The US-Japanese talks came as Wall Street racked up further heavy losses amid continuing uncertainty over Trump’s trade salvoes.
The benchmark S&P 500 closed 2.24 percent lower on Wednesday, while the tech-heavy Nasdaq Composite fell 3.07 percent.
The losses followed a warning by US Federal Reserve Chair Jerome Powell that Trump’s steep tariffs could leave the US economy grappling with weak growth, rising unemployment and higher inflation all at once.
“We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension,” Powell said in a speech to the Economic Club of Chicago on Wednesday, referring to the US central bank’s twin goals of maximum employment and stable prices.
“If that were to occur, we would consider how far the economy is from each goal, and the potentially different time horizons over which those respective gaps would be anticipated to close.”
US stocks have been on a rollercoaster ride since Trump’s inauguration in January, alternating between sharp dips and big jumps amid his back-and-forth tariff announcements.
Financial markets and businesses have been on tenterhooks waiting for signs that the US president is open to watering down or scrapping many of his tariffs in exchange for concessions from US trading partners.
Trump administration officials have said that more than 75 countries have reached out to begin negotiations on trade.
After the latest losses on Wall Street, the S&P 500 and Nasdaq are down about 10 percent and 15 percent, respectively, since the start of the year.
Asian stock markets got off to a better start on Thursday, with Japan’s benchmark Nikkei 225, South Korea’s KOSPI and Hong Kong’s Hang Seng Index each rising more than 0.5 percent in early trading.
World
Appetite among NATO members to join Iran war ‘very limited’, says Eide
Norway has pushed back against criticism from US President Donald Trump over what he described as “zero” European support in the conflict with Iran.
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“NATO is a defensive alliance. It is not an attack alliance,” Norway’s Foreign Minister Espen Barth Eide told Euronews’ Europe Today flagship morning show.
Eide said NATO members are focused on safeguarding key global trade routes, including keeping the Strait of Hormuz open. “NATO countries are doing something, but it’s not as a party to a conflict,” he added.
Trump has repeatedly criticised NATO allies for not backing Washington in the Iran conflict. He raised the issue again during a White House meeting earlier this month with NATO Secretary General Mark Rutte.
Eide argued that there had been no prior preparation or consensus within the alliance. As a result, there is “very limited appetite” among member states to join the war.
He said that while both the US and Iran may have reasons to end the conflict, “the sides are far apart”, with negotiations hindered by opposing demands.
On Monday, Trump said the United States would maintain its blockade of Iranian ports until Tehran agrees to a peace deal.
Still, Eide pointed to signs of “some progress”, noting the broader global impact of the conflict. “This is not only an issue for the two sides, but it affects the whole world economy,” he said.
Addressing a European diplomatic push to establish a Palestinian state, Eide reiterated support for a two-state solution based on long-standing United Nations principles. However, he acknowledged that such an outcome is “not around the corner”.
He added that a two-state solution is also in Israel’s interest, describing it as “the only viable solution for real peace in a very troubled region”.
Norway, alongside Spain and Ireland, recognised the State of Palestine in 2024.
World
Iran War Live Updates: Trump Officials and Iran Plan New Talks Despite Mixed Messages
The United States military last week extended its blockade on vessels coming in and out of Iranian ports to the waters of the wider world, declaring that it would pursue any ship aiding Iran, regardless of location on the high seas or flag.
The U.S. “will actively pursue any Iranian-flagged vessel or any vessel attempting to provide material support to Iran,” Gen. Dan Caine, chairman of the Joint Chiefs of Staff, said Thursday, noting that the American troops beyond the Middle East will engage in operations to thwart Iranian shipping.
The extension of the blockade comes as the economically vital Strait of Hormuz remains all but closed to commercial traffic and the two-week cease-fire between the United States and Iran nears an end. The move aligns longstanding American economic policies targeting Iran with the current military campaign against it, maritime and military law experts say.
But it raises a host of legal and practical questions.
“War is a messy thing not just on the combat side but under national and international law,” said James R. Holmes, chair of maritime strategy at the Naval War College.
“From a legal standpoint, a blockade is an act of war, so the blockade probably is legal to the extent Operation Epic Fury is,” he said using the name of the U.S. military campaign against Iran.
Since Congress has not declared war against Iran, no formal state of war exists between the United States and the Islamic Republic. But Mr. Holmes noted that “undeclared wars are more the rule than the exception in U.S. history,” with joint resolutions of Congress, United Nations Security Council resolutions and NATO decisions invoked to justify fighting.
“This campaign may be more unilateral than most, but it is not without precedent,” he said.
Under international law, the legality of the blockade is “more ambiguous,” said Jennifer Kavanagh, a senior fellow and director of military analysis at Defense Priorities, a foreign policy think tank in Washington.
For a blockade to be legal, Ms. Kavanagh said, it must be “effective,” meaning that it is both enforceable and enforced. Some would argue that a “‘global blockade’ is not permissible in conception” because it is overly broad, she said.
Still, expansive blockades have taken place throughout history, including during World War II, when states enforced naval blockades worldwide other than in neutral territorial seas. Over the centuries before that, the British blockaded France throughout the Revolutionary and Napoleonic Wars, and during the War of American Independence, the colonies and their allies raided British shipping as far away as the Indian Ocean.
Enforcing expansive blockades is difficult, however.
“The seven seas are a big place, and the largest navy or coast guard is tiny by comparison,” Mr. Holmes said. Whether the U.S. blockade ultimately is deemed “effective,” legally speaking, will depend on whether the U.S. has enough assets like ships, aircraft, boarding crews and intelligence gathering to enforce it.
The blockade does not have to be “airtight” to meet the legal test, Mr. Holmes said, and assessing its effectiveness will be tough for outside observers in any case.
Enforcement may also have to be somewhat selective, he suggested.
“Now, it is possible our leadership might quietly let a ship proceed when it suits the national interest,” Mr. Holmes said. “For instance, with a summit coming up between President Trump and General Secretary Xi” — Mr. Trump is to meet with China’s leader, Xi Jinping, in May — “Washington might not want to ruffle feathers by obstructing China’s oil imports.”
The expanded blockade is part of a longstanding economic campaign against Iran, but it represents something of a tactical change for the Trump administration.
Earlier in the war, the United States temporarily lifted sanctions on Iranian oil at sea to ease the pressure on global energy prices. And before imposing a blockade on Iranian ports last week, the U.S. allowed Iranian tankers to transit the Strait of Hormuz for the same reason.
Now Washington seems to be returning its focus to keeping pressure on Iran.
“The blockade is a wartime extension of existing U.S. economic sanctions against the Iranian regime,” said James Kraska, professor of international maritime law and a visiting professor at Harvard Law School. In peacetime, he said, the sanctions were a “powerful tool to weaken the Iranian economy.” Now, he said, the blockade serves as a “kinetic expansion.”
General Caine’s announcement about the expanded naval blockade came one day after Treasury Secretary Scott Bessent announced “Operation Economic Fury,” an effort he called the “financial equivalent” of a bombing campaign. It includes secondary sanctions on institutions internationally, like banks, that have dealings with Iran.
The expanded blockade “marks a notable escalation by the United States,” said Ms. Kavanagh.
Still, she said, it is unlikely to significantly change Iranian calculations.
“For Iran, this war is existential and it is not going to cave easily or quickly,” she said. “Economic pressure may work over the very long term, but Trump seems too impatient for a deal to wait it out.”
World
Deadly shooting at historic tourist site leaves one dead, several injured as motive unclear
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A Canadian woman was shot and killed Monday, and several others were injured, before a gunman took his own life at Mexico’s popular Teotihuacan pyramids.
Mexican officials said that four people were wounded by gunfire and two others sustained injuries from falls. Among the injured were tourists from Colombia, Russia, and Canada, according to local government reports via The Associated Press.
A firearm, a bladed weapon, and live cartridges were found at the scene, Mexico’s Security Cabinet confirmed on social media.
The Pyramid of the Moon and the Pyramid of the Sun are seen along with smaller structures lining the Avenue of the Dead in Teotihuacan, Mexico, on March 19, 2020. A gunman killed a Canadian tourist and injured several other before taking his own life at the popular site, authorities said Monday. (Rebecca Blackwell/AP)
“Our thoughts are with their family and loved ones, and consular officials are in touch to provide assistance,” Canada’s foreign ministry said in a social media post.
Mexican President Claudia Sheinbaum wrote on social media that the shooting would be thoroughly investigated and that she was in contact with the Canadian Embassy.
TOURISTS TRAPPED IN PUERTO VALLARTA RECOUNT CARTEL RETALIATION AFTER EL MENCHO KILLED
Mexican President Claudia Sheinbaum speaks during her morning press conference at the National Palace in Mexico City on Jan. 5, 2026. (Raquel Cunha/Reuters)
“What happened today in Teotihuacan deeply pains us,” she wrote. “I express my most sincere solidarity with the affected individuals and their families.”
MAJOR DRUG LORD ‘EL MENCHO’ KILLED IN MEXICAN MILITARY OPERATION WITH U.S. INTELLIGENCE SUPPORT
Sheinbaum said she has instructed the Security Cabinet to investigate the events and provide all necessary support to the victims.
People visit the Pyramid of the Sun in the pre-Hispanic city of Teotihuacan near Mexico City, Mexico, on March 21, 2024, following the spring equinox. (Henry Romero/Reuters)
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“Personnel from the Secretariat of the Interior and the Secretariat of Culture are already heading to the site to provide assistance and accompaniment, along with local authorities,” she said. “I am closely following the situation, and we will continue to provide timely updates through the Security Cabinet.”
The pre-Hispanic city, located just outside Mexico City, was once one of the most significant cultural centers in Mesoamerica.
Fox News Digital has reached out to Canada’s foreign ministry for comment.
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