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US and China Meet for First Time Since Trump Imposed Tariffs

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US and China Meet for First Time Since Trump Imposed Tariffs

Top economic officials from the United States and China are meeting in Geneva on Saturday for high-stakes negotiations that could determine the fate of a global economy that has been jolted by President Trump’s trade war.

The meetings, scheduled to continue on Sunday, are the first since Mr. Trump ratcheted up tariffs on Chinese imports to 145 percent and China retaliated with its own levies of 125 percent on U.S. goods. The tit-for-tat effectively cut off trade between the world’s largest economies while raising the possibility of a global economic downturn.

While the stakes for the meetings are high, expectations for a breakthrough that results in a meaningful reduction in tariffs are low. It has taken weeks for China and the United States to even agree to talk, and many analysts expect this weekend’s discussions to revolve around determining what each side wants and how negotiations could move forward.

Still, the fact that Beijing and Washington are finally talking has raised hopes that the tension between them could be defused and that the tariffs could ultimately be lowered. The impact of the levies is already rippling across the global economy, reorienting supply chains and causing businesses to pass additional costs onto consumers.

The negotiations will be watched closely by economists and investors, who fear that a U.S.-Chinese economic war will lead to slower growth and higher prices around the world. Businesses, particularly those that rely on Chinese imports, are also on high alert about the talks as they grapple with how to cope with the new taxes and the uncertainty about whether they will remain in place.

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“Both the U.S. and China have strong economic and financial interests in de-escalating their trade hostilities, but a durable détente is hardly in the offing,” said Eswar Prasad, a former director of the International Monetary Fund’s China division.

“Nevertheless,” he added, “it represents significant progress that the two sides are at least initiating high-level negotiations, offering the hope that they will temper their rhetoric and pull back from further overt hostilities on trade and other aspects of their economic relationship.”

The Trump administration’s negotiators are being led by Treasury Secretary Scott Bessent, a former hedge fund manager who has said the current tariff levels are unsustainable. He will be joined by Jamieson Greer, the U.S. trade representative, who helped design Mr. Trump’s first-term trade agenda, which included a “Phase 1” deal with China. Mr. Trump’s hawkish trade adviser, Peter Navarro, was not scheduled to participate in the talks.

He Lifeng, China’s vice premier for economic policy, is leading the talks on behalf of Beijing. The Chinese government has not confirmed who else will be with Mr. He at the meetings or if Wang Xiaohong, China’s minister of public security, who directs its narcotics control commission, will attend. Mr. Wang’s participation would be a sign that the two sides might discuss Mr. Trump’s concerns about China’s role in helping fentanyl flow into the United States.

The trade fight has started to take a toll on the world’s largest economies. On Friday, China reported that its exports to the United States in April dropped 21 percent from a year earlier. Some of the largest U.S. companies have said they will have to raise prices to deal with the tariffs, cutting against Mr. Trump’s promise to “end” inflation.

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On Friday, Mr. Trump signaled that he was prepared to begin lowering tariffs, suggesting that an 80 percent rate on Chinese imports seemed appropriate. Later in the day, referring to the China trade talks, Mr. Trump said, “We have to make a great deal for America.” He added that he would not be disappointed if a deal was not reached right away, arguing that not doing business is also a good deal for the United States.

The president also reiterated that he had suggested lowering the China tariffs to 80 percent, adding, “We’ll see how that works out.”

The Trump administration has accused China of unfairly subsidizing key sectors of its economy and flooding the world with cheap goods. The United States has also been pressuring China to take more aggressive steps to curb exports of precursors for fentanyl, a drug that has killed millions of Americans.

China has been steadfast in saying it does not intend to make trade concessions in response to Mr. Trump’s tariffs. Officials have insisted that the nation agreed to engage in talks at the request of the United States.

“This tariff war was launched by the U.S. side,” Liu Pengyu, the spokesman for the Chinese Embassy in Washington, said this week. “If the U.S. genuinely wants a negotiated solution, it should stop making threats and exerting pressure, and engage in talks with China on the basis of equality, mutual respect and mutual benefit.”

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An 80 percent tariff, while a big drop from the current 145 percent, would still most likely shut off most trade between the countries.

China and the United States could take other concrete gestures to help pave the way for future negotiations, other experts said.

One option would be to scale back tariffs to about 20 percent, where they were in early April before Mr. Trump announced 34 percent levies on goods from China and mutual retaliation ensued, said Wu Xinbo, the dean of the Institute of International Studies at Fudan University in Shanghai.

“If we can scale back to that stage, then I think it will be a major progress in leading towards more constructive negotiations,” Mr. Wu said.

He said China was prepared to talk about fentanyl as a separate issue, adding that China had offered to sit down with the Trump administration in February after Mr. Trump first announced plans to impose tariffs on Chinese goods, citing the flow of illegal fentanyl into the United States.

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The United States and China are meeting in proximity to the headquarters of the World Trade Organization, which has sharply criticized Mr. Trump’s tariff wars. The group has forecast that the continued division of the global economy into “rival blocs” could cut global gross domestic product by nearly 7 percent over the long run, particularly harming the world’s poorest countries. A spokesman for the W.T.O. said it welcomed the talks as a step toward de-escalation.

The alternative — a world in which the United States and China no longer engage in trade — could be economically painful and destabilizing. American consumers, who have come to rely on cheap goods from China, could soon confront thinly stocked store shelves and high prices for the products that remain.

The National Retail Federation said on Friday that import cargo traffic in the United States is expected to decline this year for the first time since 2023, when supply chain problems were persistent, and attributed the decline to Mr. Trump’s tariffs.

“We are starting to see the true impact of President Trump’s tariffs on the supply chain,” said Jonathan Gold, the retail federation’s vice president for supply chain and customs policy. “In the end, these tariffs will affect consumers in the form of higher prices and less availability on store shelves.”

The Trump administration has been racing to make trade deals with 17 other major trading partners after the president’s decision to pause the reciprocal tariffs he announced in April. On Friday, he hailed a preliminary agreement with Britain as evidence that his tariff strategy was working.

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Economists have been heartened by signs that the White House appears ready to scale back tariffs.

“This rush to demonstrate progress on ‘deals’ reveals a rising desperation within the administration to roll back tariffs before they hit G.D.P. growth and inflation,” Paul Ashworth, chief North America economist for Capital Economics, wrote in a note to clients. “With the slump in incoming container ships from China raising fears of imminent shortages in the U.S., the pressure is building on the Trump administration to de-escalate that tariff buildup.”

Capital Economics estimates that if the United States lowered its tariffs on China to 54 percent, the overall effective tariff rate on imports for the United States would fall to 15 percent from 23 percent. That would put its growth and inflation forecasts back in line with its estimates from earlier this year that were based on Mr. Trump’s campaign pledges.

It remains unclear whether Mr. Trump would accept a 54 percent tariff rate.

On Friday, he suggested that he was prepared to lower tariffs to 80 percent as he gave Mr. Bessent the authority to make a deal.

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“80% Tariff on China seems right! Up to Scott B.,” Mr. Trump wrote on Truth Social, his social media platform.

Later in the day, his press secretary, Karoline Leavitt, said that 80 percent figure was not an official offer and was instead “a number that the president threw out there.” She added that Mr. Trump would not lower tariffs on China unless Beijing also reduced its levies.

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Video: Anna Wintour and Chloe Malle on the Future of Vogue

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Video: Anna Wintour and Chloe Malle on the Future of Vogue

“Sometimes in fashion people can feel too cool, unavailable, a bit laconic, and for me, I’m just never going to be that person. Oh well, first of all, I feel like we’re one of the couples in the beginning of ‘When Harry Met Sally.’ “I mean, this is not how we normally sit, guys. Well, what I love about Chloe is obviously she’s brilliant and interested in so many different things. And of course, she appreciates and loves fashion, but she is not a fashion obsessive. And I think that it’s actually a great gift to have when you’re looking at the landscape of Vogue and you’re looking at fashion as part of the cultural landscape, to be able to have not too insider a view of what it is — that she can step back and think about it from a broader perspective.” “Anna was very pulled back at the beginning of the March issue planning, and she was letting everything simmer. And then before it came to a boil, she tapped in to just check in, and pulled me into her office and said, ‘Chloe, everything in the March issue, it looks good. It’s OK, but I want to know where is the you? What makes this issue yours? Where are the weird dogs?’, was the exact quote. And it was very liberating for me because I do feel the pressure of carrying on this enormous legacy. But I — having Anna say that to me allowed me to think about, ‘But what makes this exciting to me right now?’” “Any great editor is going to have a strong personality. And what they see, what they feel, what they think is going to be reflected across all of our platforms.” “I am very inspired by what Vogue has been for a long time, and especially in the last 37 years. It’s exciting to me, and I think that the people who I’m most excited by consistently are people who are really true to who they are and what excites them. And for me, that’s been a real guiding principle. I don’t want the fact that I may be editing Vogue now to mean that I’m someone who’s intimidating to talk to at kindergarten dropoff. That’s just not who I am.” “Chloe is her own person. She’s going to have her own vision. She’s going to put her own stamp on Vogue. And yes, it will take a little time, but she is not A.W.-lite in any way. And that’s not what we wanted. We wanted someone that was clearly her own person, that clearly believed in her vision. And I think people should get over comparisons and look at people as individuals. And Chloe is already a great Vogue editor.” “Something that I really tried to learn from and mimic is Anna is so dogged about checking in on things, and pushing you and keeping things going. And I find myself feeling so stretched in so many different directions, and it’s so important to me to really feel present and available to the people on the Vogue team, to my husband, to my children, to my mother.” “When I first came to Vogue, I — American Vogue — I had very small kids, and I remember how difficult it was to balance all of that. So that is something that I urge you to prioritize because it really is vital.” “We’ve been building in my house a 3,700-piece Lego of the Daily Bugle newspaper office, and it’s been very exciting to me because now my son thinks that superheroes work in print media.” “You’ve got me excited thinking about this now. What would I do? I would build a whole new podcast studio. I would pay everyone 30 percent more. I would make sure the social team had more people on it because they’re working all the time. I would have our app staffed more fully. We have so many ideas about shoots that we’re excited about doing that take people on adventures, and those budgets would really help with that. And we are still finding ways to do these things. But — there’s always more you can be doing.” “But to be clear, Jessica, we have a very healthy budget at Vogue. And how we use it and use our resources is constantly changing depending on the moment.” “About 30 minutes ago before this interview.” “Oh, for me too? I don’t get nervous.”

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L.A. and Long Beach are among the least affordable cities in the world for homebuyers

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L.A. and Long Beach are among the least affordable cities in the world for homebuyers

Los Angeles, Long Beach and San Diego are among the world’s least affordable cities for homebuyers, a recent report says.

When the price of a regular home is compared to regular local salaries, Los Angeles, Long Beach, San Diego and San José were among the five least affordable cities in the world, according to a survey from financial services provider Remitly conducted late last year.

Relative to local pay scales, the cities are more expensive for homebuyers than New York, Paris and Singapore, Remitly’s analysis says.

In Los Angeles, a single buyer earning the local average salary could afford a home worth only 28% of the average property in the region, according to the survey. Residents of San José can afford to buy a home worth only about a quarter of the average.

“This could mean they would have to stretch themselves financially, often finding larger down payments or asking for financial help from family to be able to make their dream of owning a home a reality,” the report said.

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Two additional Bay Area cities appeared on the “20 least affordable” list. San Francisco came in at 10th place, while Oakland ranked 19th.

California homes are about twice as expensive as the typical midtier U.S. home, according to a recent report from the state Legislative Analyst’s Office. As of December, the average home price in California was $755,000, the report said.

Researchers looked at property prices, average salaries pre-tax, mortgage, interest rates and down payments and deposits to compare housing affordability across 151 cities in 11 countries.

Countries were chosen as they ranked in Remitly’s previous study of the most popular countries to move to. The study included the 50 U.S. cities with the highest populations. It excluded the United Arab Emirates and Japan because of insufficient data. The only Asian city the researchers included was Singapore.

Property prices were taken from national statistics agencies and real estate databases, the study said. Income figures were from national and regional datasets.

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Detroit — where a person making the local average salary could afford more than two times the average property price — was named the world’s most affordable city to become a homeowner. It was the only U.S. city to make it onto the list, which otherwise consisted of German and Italian cities.

Michael Lens, professor of urban planning and public policy at UCLA, said the “writing has certainly been on the wall” for California’s housing market to be considered the most expensive in the world.

California’s draws include its “unparalleled amenities” and strong job market, Lens said. But “we make it very challenging to build enough homes to satiate the demand,” he said.

“That combination of low supply and relatively high affluence for some parts of our country make the baseline of an entry-level home very expensive,” Lens said.

Detroit’s ranking as the most affordable city in Remitly’s list reflects the city’s decades-long population loss, driven by white flight and a decline in the auto industry, Lens said. Vacancy rates are high because it was built to house a population that was once much larger.

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Pizza Hut closing hundreds of locations around the U.S.

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Pizza Hut closing hundreds of locations around the U.S.

Another major restaurant chain is shrinking in parts of the U.S.

Pizza Hut’s parent company Yum Brands plans to close 250 U.S. locations of its nationwide retail footprint, in the first half of 2026.

Yum Chief Financial Officer Ranjith Roy said on a Wednesday earnings call that the “targeted closures of underperforming units” are a part of what the company has dubbed its “Hut Forward” strategy — which also calls for more marketing support and an update of the chain’s technology and franchise agreements.

There are about 20,000 Pizza Hut locations worldwide, with roughly 6,400 in the U.S., according to the company’s November Securities and Exchange Commission filing.

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Yum didn’t respond to a request for comment.

The company has not yet said which stores it plans to close. Employees at five Pizza Hut locations across Los Angeles County said they did not know if their stores would be affected.

In November, Yum said in a statement it was launching a “review of strategic options” for the Pizza Hut brand and hinted that it was considering a sale.

“Pizza Hut’s performance indicates the need to take additional action to help the brand realize its full value, which may be better executed outside of Yum! Brands,” Chris Turner, the company’s chief executive, said in the statement. “To truly take advantage of the brand we’ve built and the opportunities ahead, we’ve made the decision to initiate a thorough review of strategic options.”

In addition to Pizza Hut, Yum Brands owns Kentucky Fried Chicken; Taco Bell, founded in 1962 in Downey; and Habit Burger & Grill, founded in 1969 in Santa Barbara.

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As of November, the company franchised or operated more than 62,000 restaurants across more than 155 countries and territories, according to its SEC filing.

Yum shares have risen by more than 20% in the last year.

For its fourth quarter, which ended on Dec. 31, the company reported a net income of $535 million, up from $423 million the previous year.

The company’s financial results were buoyed by strong performances from Taco Bell and KFC, which saw same-store sales increase by 7% and 3% in the fourth quarter, respectively. In comparison, Pizza Hut’s performance lagged, with same-store sales falling 1%.

The first Pizza Hut opened in 1958 in Wichita, Kan. The restaurant rapidly added locations and was acquired by PepsiCo in 1977.

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In 1997, PepsiCo spun off Pizza Hut, Taco Bell and KFC into Tricon Global Restaurants Inc., according to the Washington Post. Tricon changed its name to Yum in 2002.

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