World
Trump-China tariff war: Who’s winning so far?
After United States President Donald Trump suspended his “reciprocal tariffs” on major US trading partners on April 9, he ramped them up on China’s goods. US trade levies on most imports from China have climbed to 145 percent. Beijing retaliated with duties of its own, at 125 percent on US goods.
Trump has long accused China of exploiting the US on trade, casting his tariffs as necessary to revive domestic manufacturing and reshore jobs back to the US. He also wants to use tariffs to finance tax cuts. Most economists remain sceptical Trump will achieve his aims.
For now, the US and China are locked in a high-stakes game of chicken. The world is waiting to see which country will yield and which will stay the course. As Trump nears his first 100 days in office for the second time, here’s where the tariff war with China stands:
What’s happening with negotiations?
Trump recently played up the possibility of securing a trade deal with China. Last week, the US president said his tariffs on China will “come down substantially” in the near future.
“We’re going to have a fair deal with China,” Trump told reporters on April 23, stirring hopes of a de-escalation. He also said his administration was “actively” negotiating with the Chinese side without elaborating.
On April 24, however, China’s Ministry of Commerce rebuffed president Trump’s remarks, saying there were no talks taking place between the two countries.
“Any claims about the progress of China-US economic and trade negotiations are groundless and have no factual basis,” ministry spokesman He Yadong said.
While he insisted that Beijing won’t duck any economic blows from Washington, he also said the door was “wide open” for talks.
Last week, the Reuters news agency reported that China was evaluating exemptions for select US imports – a list of up to 131 products.
Beijing has not made any public statement on the issue.
Has the tariff war impacted US exports?
Trump introduced his sweeping tariffs on China less than three weeks ago. The fallout for US businesses won’t be fully felt until later this year. Still, the warning signals are already flashing red.
Data from the US Department of Agriculture shows that exports of soya beans – the biggest US farm export – fell dramatically for the period April 11-17, the first full week of reporting since Trump’s China tariff announcement.
By April 17, net sales of US soya beans dropped by 50 percent compared with the previous week. That was driven by a 67 percent fall in weekly soya bean exports to China, which, until recently, was America’s biggest export destination for the legume.
According to Piergiuseppe Fortunato, an adjunct professor of economics at the University of Neuchatel in Switzerland, “China’s retaliatory tariffs will hit US farmers hard. Some may go out of business.” He added that all sectors with exposure to China would come under strain.
In 2023, the US exported roughly $15bn of oil, gas and coal to China. Losing that market would hit US energy firms.
Are imports to the US going to take a hit?
Since the start of Trump’s tariff war, cargo shipments have plummeted. According to Linerlytica, a shipping data provider, Chinese freight bookings bound for the US fell by 30 to 60 percent in April.
The drastic reduction in shipping from America’s third largest trading partner – after Canada and Mexico – has not yet been felt. In May, however, thousands of companies will need to restock their inventories.
According to Bloomberg News, retail giants Walmart and Target told Trump in a meeting last week that shoppers are likely to see empty shelves and higher prices from next month. They also warned that supply shocks could roll out to Christmas.
Electronic appliances, such as TV sets and washing machines, made up 46.4 percent of US imports from China in 2022. The US also imports a lot of its clothing and pharmaceutical product ingredients from China. The price of these goods will begin to rise from next month.
On April 22, the International Monetary Fund raised its US inflation forecast to 3 percent in 2025, owing to tariffs – a full 1 percentage point higher than in January. The lender also lowered its US economic growth forecast and raised its expectation that the US will tip into recession this year.
How will China’s economy be affected?
Despite growing tensions between the US and China, Washington and Beijing remain major trading partners.
According to the Office of the US Trade Representative, the US imported $438.9bn in Chinese goods last year.
That amounts to roughly 3 percent of China’s total economic output, which remains heavily reliant on exports.
In a report shared with its clients this month, Goldman Sachs said it expects Trump’s tariffs to drag down China’s gross domestic product (GDP) by as much as 2.4 percentage points.
For their part, China’s top officials said the country can do without American farm and energy imports and promised to achieve a 5 percent GDP growth target for this year.
Zhao Chenxin, vice chairman of the National Development and Reform Commission, said that together with non-US imports, domestic farm and energy production would be enough to satisfy demand.
“Even if we do not purchase feed grains and oilseeds from the United States, it will not have much impact on our country’s grain supply,” Zhao said on Monday.
He also noted there would be limited impact on China’s energy supplies if companies stopped importing US fossil fuels.
In some ways, experts said, China has been preparing for this crisis.
Fortunato told Al Jazeera: “The US is one of China’s biggest export markets, so tariffs will slow GDP growth. But Beijing has played this smartly as it began diversifying its imports away from the US during the first Trump trade war” in 2018.
He also pointed out that “the US depends on China for up to 60 percent of its critical mineral imports, used in everything from clean energy to military technology. The opposite flow simply isn’t there, so the US is more vulnerable.”
Could the US lose its geopolitical standing?
Trump has made little secret of his wish to conscript US allies into a trade war. The administration said it aims to strike free trade deals with the European Union, Great Britain and Japan.
More generally, reports suggest that Washington is asking trade partners to loosen their economic ties with China as a pre-condition for securing relief from Trump’s “reciprocal” tariffs.
Nevertheless, US allies seem largely opposed to any economic showdown with China. Last week, the European Commission said it has no intention of “decoupling” from China.
Elsewhere, UK Chancellor of the Exchequer Rachel Reeves recently told the Daily Telegraph newspaper: “China is the second biggest economy in the world, and it would be, I think, very foolish to not engage.”
Many countries are not in a position to abandon their trade ties with Beijing. The EU, in particular, has a huge trade deficit with China. Cutting off access to Chinese goods – both consumer products and inputs for industry – would bruise its already sluggish economy.
Across the developing world, China’s trade role is equally as crucial. Roughly a quarter of Bangladesh’s and Cambodia’s imports come from China. Nigeria and Saudi Arabia are similarly dependent on Beijing for their goods imports.
“It’s hard to see why countries would want to undermine their own business interests to try and reduce America’s trade deficit with China,” Fortunato said. “On this point, I think Trump has been short-sighted and may be forced to blink first on lowering tariffs with China.”
Is Trump losing his grip on Republican voters?
The Chinese Communist Party doesn’t need to worry about its next election cycle. Trump’s Republican Party does, so Beijing has the political upper hand in Trump’s trade war. Simply put, it has more time on its side.
For Trump’s party, his sabre rattling already looks politically costly. A new Economist-YouGov poll shows Americans reporting Trump’s economic actions have hurt them personally more than they’ve helped by a 30-point margin.
And public approval of the president’s economic management has been low for a while: It had fallen to 37 percent in a Reuters-Ipsos poll published on March 31, his lowest score ever in that survey.
If Trump stays the course, it is likely that his approval ratings might fall still lower, jeopardising the Republican Party’s fragile grip on the US House of Representatives – and possibly the Senate, experts said.
“For these reasons”, Fortunato said, “China does not feel compelled to rush to the negotiating table to secure a trade deal. That will probably fall to Trump.”
World
US military launches strikes in Syria targeting Islamic State fighters after American deaths
WASHINGTON (AP) — The Trump administration launched military strikes Friday in Syria to “eliminate” Islamic State group fighters and weapons sites in retaliation for an ambush attack that killed two U.S. troops and an American civilian interpreter almost a week ago.
A U.S. official described it as “a large-scale” strike that hit 70 targets in areas across central Syria that had IS infrastructure and weapons. Another U.S. official, who also spoke on condition of anonymity to discuss sensitive operations, said more strikes should be expected.
“This is not the beginning of a war — it is a declaration of vengeance. The United States of America, under President Trump’s leadership, will never hesitate and never relent to defend our people,” Defense Secretary Pete Hegseth said on social media.
The new military operation in Syria comes even as the Trump administration has said it’s looking to focus closer to home in the Western Hemisphere, building up an armada in the Caribbean Sea as it targets alleged drug-smuggling boats and vowing to keep seizing sanctioned oil tankers as part of a pressure campaign on Venezuela’s leader. The U.S. has shifted significant resources away from the Middle East to further those goals: Its most advanced aircraft carrier arrived in South American waters last month from the Mediterranean Sea.
Trump vowed retaliation
President Donald Trump pledged “very serious retaliation” after the shooting in the Syrian desert, for which he blamed IS. Those killed were among hundreds of U.S. troops deployed in eastern Syria as part of a coalition fighting the militant group.
During a speech in North Carolina on Friday evening, the president hailed the operation as a “massive strike” that took out the “ISIS thugs in Syria who were trying to regroup.”
Earlier, in his social media post, he reiterated his backing for Syrian President Ahmad al-Sharaa, who Trump said was “fully in support” of the U.S. effort.
Trump also offered an all-caps threat, warning IS against attacking American personnel again.
“All terrorists who are evil enough to attack Americans are hereby warned — YOU WILL BE HIT HARDER THAN YOU HAVE EVER BEEN HIT BEFORE IF YOU, IN ANY WAY, ATTACK OR THREATEN THE U.S.A.,” the president added.
The attack was conducted using F-15 Eagle jets, A-10 Thunderbolt ground attack aircraft and AH-64 Apache helicopters, the U.S. officials said. F-16 fighter jets from Jordan and HIMARS rocket artillery also were used, one official added.
U.S. Central Command, which oversees the region, said in a social media post that American jets, helicopters and artillery employed more than 100 precision munitions on Syrian targets.
How Syria has responded
The attack was a major test for the warming ties between the United States and Syria since the ouster of autocratic leader Bashar Assad a year ago. Trump has stressed that Syria was fighting alongside U.S. troops and said al-Sharaa was “extremely angry and disturbed by this attack,” which came as the U.S. military is expanding its cooperation with Syrian security forces.
Syria’s foreign ministry in a statement on X following the launch of U.S. strikes said that last week’s attack “underscores the urgent necessity of strengthening international cooperation to combat terrorism in all its forms” and that Syria is committed “to fighting ISIS and ensuring that it has no safe havens on Syrian territory and will continue to intensify military operations against it wherever it poses a threat.”
Syrian state television reported that the U.S. strikes hit targets in rural areas of Deir ez-Zor and Raqqa provinces and in the Jabal al-Amour area near the historic city of Palmyra. It said they targeted “weapons storage sites and headquarters used by ISIS as launching points for its operations in the region.”
IS has not said it carried out the attack on the U.S. service members, but the group has claimed responsibility for two attacks on Syrian security forces since, one of which killed four Syrian soldiers in Idlib province. The group in its statements described al-Sharaa’s government and army as “apostates.” While al-Sharaa once led a group affiliated with al-Qaida, he has had a long-running enmity with IS.
The Americans who were killed
Trump this week met privately with the families of the slain Americans at Dover Air Force Base in Delaware before he joined top military officials and other dignitaries on the tarmac for the dignified transfer, a solemn and largely silent ritual honoring U.S. service members killed in action.
The guardsmen killed in Syria last Saturday were Sgt. Edgar Brian Torres-Tovar, 25, of Des Moines, and Sgt. William Nathaniel Howard, 29, of Marshalltown. Ayad Mansoor Sakat, of Macomb, Michigan, a U.S. civilian working as an interpreter, also was killed.
The shooting near Palmyra also wounded three other U.S. troops as well as members of Syria’s security forces, and the gunman was killed. The assailant had joined Syria’s internal security forces as a base security guard two months ago and recently was reassigned because of suspicions that he might be affiliated with IS, Interior Ministry spokesperson Nour al-Din al-Baba has said.
The man stormed a meeting between U.S. and Syrian security officials who were having lunch together and opened fire after clashing with Syrian guards.
___
Associated Press writer Abby Sewell in Beirut, Lebanon, contributed.
World
Putin says Russia won’t launch new attacks on other countries ‘if you treat us with respect’
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Russian President Vladimir Putin said Friday that Moscow would refrain from launching new attacks on other nations provided his country is treated “with respect.”
The Kremlin made the remarks during his annual televised press conference in Moscow as concerns persist among European nations that Russia poses a security threat, Agence France-Presse (AFP) reported.
“Will there be new special military operations? There will be no operations if you treat us with respect, if you observe our interests, just as we have constantly tried to observe yours,” Putin said.
TRUMP TOUTS ‘TREMENDOUS PROGRESS’ BUT SAYS HE’LL MEET PUTIN AND ZELENSKYY ‘ONLY WHEN’ PEACE DEAL IS FINAL
Russian President Vladimir Putin speaks during his annual news conference and call-in show at Gostiny Dvor in Moscow Friday, Dec. 19, 2025. (AP Photo/Pavel Bednyakov)
Putin uses the phrase “special military operation” to describe Russia’s offensive in Ukraine, according to AFP.
He added there would be no further Russian invasions “if you don’t cheat us like you cheated us with NATO’s eastward expansion,” according to the BBC.
The Russian leader also claimed he was “ready and willing” to end the war in Ukraine “peacefully,” though he offered few details suggesting a willingness to compromise, the BBC reported.
PUTIN CLAIMS ‘TROOPS ARE ADVANCING,’ WILL ACHIEVE GOALS AS EU APPROVES MASSIVE UKRAINE LOAN
Russian President Vladimir Putin listens to a reporter’s question during his annual news conference and call-in show at Gostiny Dvor in Moscow Friday, Dec. 19, 2025. (Alexander Kazakov, Sputnik, Kremlin Pool Photo via AP)
The yearly news conference, which typically runs at least four hours, features questions from reporters and members of the public across Russia.
More than 2.5 million questions were submitted for this year’s event, which focused heavily on the war in Ukraine, Reuters reported.
Putin also noted during the event that the nation’s “troops are advancing” and expressed confidence that Russia will accomplish its objectives through military means if Ukraine does not assent to Russia’s terms during peace talks, according to The Associated Press.
PUTIN DOUBLES DOWN ON BACKING MADURO AMID MOUNTING US PRESSURE ON VENEZUELA
Russian President Vladimir Putin, left, thanks a group of volunteers who worked to prepare his call-in show at Gostiny Dvor in Moscow Friday, Dec. 19, 2025. (Alexander Kazakov, Sputnik, Kremlin Pool Photo via AP)
“Our troops are advancing all across the line of contact, faster in some areas or slower in some others, but the enemy is retreating in all sectors,” Putin declared.
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As the war drags on, the European Union has just agreed to provide Ukraine with a loan of over $105 billion.
Fox News Digital’s Alex Nitzberg contributed to this report.
World
How the reparations loan for Ukraine fell apart at the eleventh hour
It was so bold that, at times, it seemed impossible — and in the end, it was.
The European Union’s attempt to channel the immobilised assets of the Russian Central Bank into a zero-interest reparations loan failed when the bloc’s 27 leaders, faced with a leap into the unknown, chose to support Ukraine’s resistance with the tried-and-tested method of joint debt.
“If you take money from (Russian President Vladimir) Putin, you are exposed,” said Belgian Prime Minister Bart De Wever, the chief opponent of the reparations loan, explaining its failure. “If you’re exposed, then people like certainty, and where can you find certainty? In charted waters.”
The bloc will now go to the markets to raise €90 billion on its own, without touching the €210 billion in Russian assets, which will remain immobilised until Moscow ceases its war of aggression and compensates Kyiv for the damages.
The choice means that there will be no reparations loan — and not what the European Commission had promised to Ukraine, a complex proposal that advocates thought ingenious and detractors said was foolhardy.
Euronews has pieced together the events of the last four months to understand how and why the reparations loan spectacularly fell apart.
September: The pitch
The first appearance of the loan proposal dates back to 10 September, when European Commission President Ursula von der Leyen delivered her hour-long State of the EU speech in Strasbourg.
There she proposed using the cash balances from the immobilised Russian assets held in the EU to issue a reparations loan to support Ukraine. She did not provide any details at the time.
“This is Russia’s war. And it is Russia that should pay,” von der Leyen said. “It should not only be European taxpayers who bear the brunt.”
But it was not von der Leyen who would define what was about to become the most energy-consuming political debate of 2025. It was German Chancellor Friedrich Merz.
A few days after von der Leyen’s speech, he published an opinion piece in the Financial Times that offered a full endorsement of the project, presenting it as a foregone conclusion despite its lack of precedent.
“That decision should, ideally, be unanimous,” he wrote. “Failing that, it should be adopted by the large majority of member states who are firmly committed to Ukraine.”
The so-called “Merz op-ed” caught diplomats and officials by surprise. Some saw it as yet another example of Germany exploiting its position as the largest member state to single-handedly set the agenda for the entire bloc.
Subsequently, the Commission put forward a two-page document that outlined, in highly theoretical terms, how the initiative would work in practice.
The chain of events triggered one country in particular.
October: The pushback
Belgium holds the bulk of the Russian assets — about €185 billion — in central securities depository Euroclear, and felt it should have been adequately consulted before the Commission’s two-page proposal was circulated.
The Belgian resistance burst into the open in October when De Wever delivered a remarkably frank press conference in Copenhagen in which he argued the reparations loan would deprive the EU of its most powerful leverage vis-à-vis the Kremlin.
“The question now is: can we eat the chicken?” De Wever said. “The first problem, of course, is that you lose the golden eggs if you eat the chickens. You have to consider that. If you put the chicken on the table and you eat it, then you lose a golden egg.”
De Wever then delineated, one by one, his demands for the untested project: bulletproof legal certainty, full mutualisation of risks and real burden-sharing among all countries holding Russian sovereign assets.
He reiterated his concerns about the plan during a closely watched summit in mid-October, where leaders hoped to endorse the reparations loan. De Wever held his ground, and the meeting ended with a vague mandate tasking the Commission to design several “options” that could meet Ukraine’s financial and military needs for 2026 and 2027.
Von der Leyen, however, seemed to interpret the mandate as an implicit affirmation of her bold idea, which she framed as the only viable option.
“There are points to be clarified and have a deep dive,” she said at the end of the summit. “We agreed on the what, that is, the reparations loan, and we have to work on the how, how we make it possible (and) what’s the best option to move forward.”
A few days later, the EU’s three Nordic leaders publicly ruled out issuing joint debt to support Ukraine. Danish Prime Minister Mette Frederiksen went as far as to declare that “for me, there is no alternative to the reparations loan”.
November: The shock
The inconclusive summit revealed that without Belgium’s consent, the reparations loan would not be possible. The Commission accelerated bilateral talks with De Wever’s team to address the sticking points and sketch out a landing zone.
On 17 November, von der Leyen sent leaders a letter detailing three options to raise €90 billion for Ukraine: bilateral voluntary contributions, joint debt and the reparations loan.
“The options presented in this note are stark both in their design and in their implications. Clearly, there are no easy options,” she said.
The section devoted to the reparations loan was explicitly written to mitigate the Belgian concerns. It addressed two of De Wever’s key demands: providing “legally binding, unconditional, irrevocable and on-demand guarantees” and securing the participation of all EU and G7 countries holding Russian sovereign assets.
The letter also acknowledged the disadvantages of the reparations loan, warning of reputational damage to the eurozone and “knock-on effects” for its financial stability.
Just as diplomats were digesting von der Leyen’s matter-of-fact assessment, a hurricane swept through Europe: the now-infamous 28-point plan drafted by US and Russian officials to end the war in Ukraine that, among other things, proposed using the immobilised assets for the commercial benefit of both Washington and Moscow.
The plan incensed European leaders, who quickly closed ranks and emphasised that any issue within European jurisdiction would require full European involvement. Rather than weakening the case for the reparations loan, the 28-point plan seemed to strengthen it.
But then, De Wever re-entered the scene with a strongly worded letter to von der Leyen describing her blueprint as “fundamentally wrong” and riddled with “multifold dangers”.
“Hastily moving forward on the proposed reparations loan scheme would have, as collateral damage, that we, as the EU, are effectively preventing reaching an eventual peace deal,” De Wever said in the most controversial segment of the letter.
His invective revealed the chasm that still existed between Belgium and the Commission, and raised the bar even higher for a compromise.
December: The collapse
Undeterred by De Wever’s castigations, von der Leyen forged ahead and unveiled the legal texts of the reparations loan in early December — just as the European Central Bank declined to provide a liquidity backstop for the measure.
The complex proposal, which diplomats said arrived too late in the process, further expanded the guarantees to protect Belgium, erected safeguards to nullify arbitration and created an “offset” mechanism to recoup any eventual losses.
“We want to make very sure to all our member states, but specifically also to Belgium, that we will share the burden in a fair way, as it is the European way,” von der Leyen said.
This time, the pushback came from Euroclear itself, rather than De Wever. In a statement to Euronews, the depository decried the texts as “very fragile,” describing them as excessively experimental and liable to trigger an exodus of foreign investors from the eurozone.
As uncertainty over the project deepened, the leaders of Estonia, Finland, Ireland, Latvia, Lithuania, Poland and Sweden came together in its defence.
“In addition to being the most financially feasible and politically realistic solution, it addresses the fundamental principles of Ukraine’s right of compensation for damages caused by the aggression,” they wrote in a joint statement.
High-level Commission officials, from Kaja Kallas to Valdis Dombrovskis, echoed von der Leyen’s message and framed the reparations loan as the most credible option.
The proposal was bolstered after member states, fearing a repeat of the 28-point plan, invoked an emergency clause to indefinitely immobilise the Russian assets, something that on paper could help alleviate one of Belgium’s most pressing concerns.
Yet the momentum proved to be short-lived.
In an unexpected twist, Italy, Bulgaria and Malta joined Belgium in urging the Commission to explore “alternative solutions” to finance Ukraine with “predictable parameters” and “significantly less risks”. Separately, Andrej Babiš, the newly appointed prime minister of the Czech Republic, called on the Commission to “find other ways”.
The reservations set the scene for the make-or-break summit on 18 December.
During the closed-door talks, officials worked to address all the outstanding Belgian concerns and unblock the reparations loan. But in the end, the effort backfired, instead laying bare the scope of commitment that governments were required to undertake.
At one point, a compromise was floated: to provide “uncapped” guarantees and reimburse “all amounts and damages” stemming from the scheme.
The wording was too much for the sleep-deprived leaders: all of a sudden, they were staring down the prospect of bailing out the entire Belgian banking system.
Faced with mounting concessions and liabilities, leaders shelved the reparations loan and opted for joint debt.
“I knew beforehand that the enthusiasm for the reparations loan was not so big as people thought it would be,” De Wever said, suggesting that von der Leyen, while doing an “excellent job,” had been misled by Germany, the Nordics and the Baltic states.
“It turned out, as I knew it would, that many more countries that hadn’t spoken yet were extremely critical of all the financial aspects of it, finding out that a simple truth: there is no free money in the world. It just does not exist.”
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