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

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

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.

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“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.”

However, China’s Commerce Ministry said this Friday that it was now considering holding talks with the Trump administration after repeated attempts by senior U.S. officials to start negotiations. White House and Treasury Department officials did not respond to requests for comment about whether such outreach had occurred.

The standoff over when and whether Washington and Beijing will hold economic talks comes as the Trump administration is scrambling to reach trade deals with dozens of countries that could soon face high tariffs. On April 2, Mr. Trump imposed what he calls “reciprocal” tariffs on countries that he believes have unfair trade and other economic barriers. Those levies, which sent global financial markets plunging, were paused for 90 days to give countries time to reach agreements with the United States.

China, which reached a largely unfulfilled trade pact with Mr. Trump during his first term, has indicated that it has little interest in talking about a new agreement until the United States rolls back what it views as a barrage of aggressive and unfair trade measures.

Mr. Trump increased tariffs on Chinese imports to a minimum of 145 percent last month, in a bid to force China into trade negotiations. Chinese officials responded by issuing their own tariffs on American products and clamping down on exports to the United States of minerals and magnets that are necessary for many industries.

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The economic toll of the tit for tat is starting to become clear. The International Monetary Fund last month lowered its growth outlook for both countries and the world, warning that the tariffs had made a downturn more likely. Government data released this week showed Chinese factory activity slowing in April and first-quarter growth in the United States weakening.

During a cabinet meeting on Wednesday at the White House, Mr. Trump acknowledged that children in the United States may wind up with fewer dolls that cost more. But he insisted that he would continue to push for a “fair deal” with China, which he described as the “leading candidate for the chief ripper-offer.”

The Trump administration is focused on trade deals with about 18 of America’s most important trading partners that are subject to the reciprocal tariffs. Mr. Bessent indicated that talks with China would operate on a separate track from the other negotiations.

The Treasury secretary is expected to take the lead on the China negotiations while Howard Lutnick, the commerce secretary, oversees most of the other talks. However, Mr. Trump has not formally appointed or authorized a U.S. official to negotiate on his behalf with China, leaving Chinese officials to believe that the Trump administration is not ready or serious about trade talks.

Mr. Bessent, who had an introductory call with his Chinese counterpart in February, said that he held informal talks with Chinese officials over issues such as financial stability during the spring meetings of the International Monetary Fund and the World Bank last week. He said that they spoke about more “traditional things” but did not say that trade was discussed. The Treasury Department did not issue a summary of any meetings with Chinese officials.

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In an interview with Fox News this week, Jamieson Greer, the United States trade representative, said that he met virtually for over an hour with his Chinese counterpart before April 2 but that there had been no talks since Mr. Trump announced his “Liberation Day” tariffs.

Mr. Trump has suggested that Mr. Xi should call him to begin the talks personally, noting their strong personal relationship. But that is not how China typically handles important economic matters. The United States and China traditionally work out their economic differences through a structured dialogue with formal meetings and working groups led by a top economic official from each country.

“This very personalistic approach by President Trump, who wants to negotiate directly with President Xi, doesn’t match with the Chinese system at all,” said Craig Allen, a fellow at the Asia Society Policy Institute’s Center for China Analysis. “In the Chinese system, these things are carefully negotiated in advance, they go up multiple channels and it is highly controlled and scripted, and when it gets to the leader stage it is highly choreographed.”

Mr. Allen, who until recently was the president of the U.S.-China Business Council, suggested that China was most likely mindful of the acrimonious meeting that Mr. Trump had with President Volodymyr Zelensky of Ukraine in February and that Mr. Xi would be wary of a situation that could lead to a public confrontation with Mr. Trump.

During the Biden administration, Treasury Department officials worked with China to create economic and financial working groups of midlevel staff members that were intended to prevent tensions over tariffs and export controls from spiraling out of control. Those lines of communication do not appear to be in use in the Trump administration, which tends to view them as a waste of time.

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“That is exactly the kind of thing that these groups can help do — help make sure that the policy you deploy is well tailored to achieve the objective and communicates to the other side what you’re trying to achieve before it’s too late and you instead have to react to potentially unintended consequences or a message that was not intended to be transmitted,” said Brent Neiman, a University of Chicago professor who was the Treasury’s deputy under secretary for international finance during the Biden administration.

During Mr. Trump’s first term, the president initially assigned the Treasury secretary at the time, Steven T. Mnuchin, to lead trade delegations to China. He later appointed Robert E. Lighthizer, his trade representative, who was viewed as more hawkish, to oversee the talks.

Veterans of that trade war believe the current deadlock could be more protracted because the tariffs are higher and both sides believe they are winning. If U.S. growth continues to slow while prices start to rise, it could add to the urgency for Mr. Trump to get real talks with China going.

“I think at some point we have to give them a graceful off ramp,” said Wilbur Ross, who served as Mr. Trump’s commerce secretary during his first term. “Whether that is somebody from our side calling them first or whether it’s simply appointing who will be our main representative — it may be at some point we need to make a symbolic gesture.

Michael Pillsbury, a top China adviser to Mr. Trump during his first term, said Beijing was most likely waiting to see what the deals that the Trump administration reaches with other nations such as India and Japan look like before engaging directly.

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“They don’t want to start the formal talks because they want to know the bottom line from others first,” said Mr. Pillsbury, who speaks to U.S. and Chinese officials.

He noted that the trade fight has become a major point of national pride for China and that it believes that Mr. Trump’s demands — which Beijing does not fully grasp — will soften as American markets gyrate and midterm elections in the United States draw closer.

“Delay is very much in their interest, and a speedy deal is very much in Trump’s interest,” Mr. Pillsbury said.

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Air India flight to London carrying 242 people crashes in Ahmedabad

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Air India flight to London carrying 242 people crashes in Ahmedabad

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An Air India flight to London Gatwick has crashed in Ahmedabad in western India shortly after take-off, with 242 people on board.

Air India said that those on the Boeing 787-8 aircraft included 169 Indian nationals, as well as 53 British citizens, seven Portuguese and one Canadian. There were also 10 cabin crew and two pilots.

An Indian government official said there were 209 confirmed deaths, including people who had been on the ground when the plane crashed.

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The Boeing 787-8 Dreamliner was more than 10 years old, according to Flightradar24, which added that after reaching an altitude of 625 feet, the aircraft began to descend with a vertical speed of 475 feet per minute.

The aircraft tracking service added that the plane’s signal was lost at 1.38pm local time, just after take-off.

Rohan Krishnan, head of Indian doctors’ association Faima, said the flight crashed into the BJ Medical College in Ahmedabad, adding that some students had been taken to hospital.

It is the first time a 787 has crashed, according to the Aviation Safety Network database.

Boeing shares were down 7 per cent in pre-market trading on Thursday.

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The crash comes as Boeing tries to rebuild trust after a series of safety crises including two fatal crashes of its 737 Max model in 2018 and 2019, which led to the departure of its then chief executive Dennis Muilenburg.

The mid-air blowout of a door plug on a 737 Max-9 jet operated by Alaska Airlines in January 2024 triggered another clear-out of top management amid concerns over the quality of Boeing’s manufacturing.

Kelly Ortberg, who became the manufacturer’s new chief executive last August, has sought to stabilise Boeing’s production and improve its quality control processes, as well as shore up its balance sheet.

The company said on Thursday that its “thoughts are with the passengers, crew, first responders and all affected”.

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Police in Gujarat state told the Financial Times that the plane crashed “within 10 minutes” of taking off from the airport in Ahmedabad.

The Indian aviation regulator said the aircraft made a mayday call to air traffic control “but thereafter no response was given by the aircraft to the calls made by ATC”.

UK Prime Minister Sir Keir Starmer wrote on X on Thursday: “The scenes emerging of a London-bound plane carrying many British nationals crashing in the Indian city of Ahmedabad are devastating.”

“My thoughts are with the passengers and their families at this deeply distressing time,” he added.

India’s Prime Minister Narendra Modi said: “The tragedy in Ahmedabad has stunned and saddened us. It is heartbreaking beyond words.”

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crash site of the Air India Boeing 787 Dreamliner
An image taken from video footage of the crash site

Natarajan Chandrasekaran, chair of Tata, which took over the airline from state control in 2022, said: “With profound sorrow I confirm that Air India Flight 171 operating Ahmedabad London Gatwick was involved in a tragic accident today.”

Tata had promised to modernise the carrier, and, in 2023, Air India agreed a deal with Boeing and Airbus to buy 470 new aircraft, one of the largest orders in aviation history.

John Strickland, an aviation consultant, said Boeing’s 787 had a “good in-service safety record”, adding that it was “too early to speculate on the likely cause” of the accident.

Air India had faced the “challenges of decades of state ownership and poor management”, said Strickland.

However, he said that since being sold to Tata, experienced management had been brought in and the carrier “had begun to move in the right direction both operationally and commercially”.

Video: How safety lapses hit Boeing’s reputation | FT Film
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National Guard authorized to detain ICE attackers, DHS says

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National Guard authorized to detain ICE attackers, DHS says

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National Guardsmen deployed to Los Angeles have the authority to temporarily detain anti-ICE rioters in Los Angeles, the Department of Homeland Security says.

President Donald Trump has deployed some 4,000 National Guardsmen to the city as the riots continue, but Maj. Gen. Scott Sherman said on Wednesday that there have only been a small number of cases where they have detained civilians.

DHS Assistant Secretary Tricia McLaughlin says the troops are on the ground to provide protection for ICE agents and other federal law enforcement groups.

“If any rioters attack ICE law enforcement officers, military personnel have the authority to temporarily detain them until law enforcement makes the arrest,” McLaughlin told Axios in a statement.

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NEWSOM FILES EMERGENCY MOTION TO ‘IMMEDIATELY BLOCK’ TRUMP’S USE OF MILITARY TO STOP LA RIOTS

National Guard troops deployed to Los Angeles can temporarily detain anti-ICE protesters before handing them over to law enforcement, the DHS says. (RINGO CHIU/AFP via Getty Images)

TRUMP TAKES ACTION AGAINST ‘ORCHESTRATED ATTACK’ ON LAW ENFORCEMENT BY DEPLOYING MARINES TO LA: ASSEMBLYMAN

Sherman told the Associated Press on Wednesday that about 500 National Guard troops have been trained so far to help agents carry out immigration operations in Los Angeles.

Immigration officials have already circulated photos of soldiers from the National Guard providing security for Department of Homeland Security agents.

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Maj. Gen. Scott Sherman, who is overseeing the National Guard in Los Angeles

Maj. Gen. Scott Sherman, head of Task Force 51, which is overseeing the deployment of the National Guard and Marines to Los Angeles, speaks to reporters Wednesday, June 11, 2025, at the Joint Forces Training Base in Los Alamitos, California. (AP Photo/Amy Taxin)

He told the AP that over the past few days, National Guard soldiers have temporarily detained anti-ICE protesters, though there have not been many as of late because things have calmed down.

Sherman also said the soldiers did not participate in the arrests or law enforcement activities. Instead, he added, they let the agitators go once police take them into custody.

U.S. National Guard troops walking by vehicle

U.S. National Guard soldiers are deployed around downtown Los Angeles, Sunday, June 8, 2025, following an immigration raid protest the night before. (AP Photo/Eric Thayer)

California Gov. Gavin Newsom has had a public feud with the Trump administration, accusing the president of having “commandeered” 2,000 of the state’s National Guard members “illegally, for no reason” without consulting with California’s law enforcement leaders.

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The Trump administration, meanwhile, said its ICE operations are aiming to get “criminal illegal immigrant killers, rapists, gangbangers, drug dealers, human traffickers and domestic abusers off the streets.”

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Fox News’ Greg Wehner contributed to this report.

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Trumps to Attend ‘Les Misérables’ at Kennedy Center

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Trumps to Attend ‘Les Misérables’ at Kennedy Center

President Trump and the first lady, Melania Trump, are scheduled to attend the opening night performance of “Les Misérables” at the John F. Kennedy Center for the Performing Arts on Wednesday night.

In some sense it is the culmination of the Trump takeover of the national cultural center. The president appointed himself chairman of the Kennedy Center in February, purged the traditionally bipartisan board and restocked it with loyalists. In March, he took a tour and met with his new board. “We’re going to get some very good shows,” he said at the time. “I guess we have ‘Les Miz’ coming.”

Mr. Trump’s tightening grip has upset a number of artists, and some members of the cast were expected to boycott the performance.

“Les Misérables” has long been one of Mr. Trump’s favorite shows, and the opening on Wednesday was expected to be a big night out on the town for the president’s friends and top allies, complete with a red carpet.

The flashy outing, to a musical with its climactic moments celebrating an anti-government uprising, coincides with one of the most volatile weeks of Mr. Trump’s second term.

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Mr. Trump’s administration has sent soldiers from the California National Guard and the Marines into Los Angeles in response to days of protests over immigration raids.

Those deployments — over the objections of state and local officials there — have set off an extraordinary standoff between Mr. Trump and California’s governor, Gavin Newsom. In a televised address on Tuesday night, Mr. Newsom accused Mr. Trump of mounting an attack on democracy: “The moment we’ve feared has arrived.”

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