China sales to US slump even as exports beat forecasts

China said Friday sales to the United States slumped last month while its total exports topped forecasts, as Beijing fought a gruelling trade war with its superpower rival.Trade between the world’s two largest economies has nearly skidded to a halt since US President Donald Trump imposed various rounds of levies on China that began as retaliation for Beijing’s alleged role in a devastating fentanyl crisis.Tariffs on many Chinese products now reach as high as 145 percent — with cumulative duties on some goods soaring to a staggering 245 percent.Beijing has responded with 125 percent tariffs on imports of US goods, along with other measures targeting American firms.Against that backdrop, analysts polled by Bloomberg had expected exports to rise just 2.0 percent year-on-year last month.But they beat expectations, coming in at 8.1 percent.However, exports to the United States — one of China’s top trading partners — fell 17.6 percent month-on-month, data showed.”The damage of the US tariffs has not shown up in the trade data in April,” Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said in a note.”This may be partly due to transshipment through other countries, and partly because of trade contracts that were signed before the tariffs were announced,” he added.”I expect trade data will weaken in the next few months gradually.”US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are set to meet Chinese Vice Premier He Lifeng in Switzerland on Saturday and Sunday, marking the first talks between the superpowers since Trump unveiled his tariffs.April imports also beat expectations, dropping 0.2 percent, compared with the 6.0 percent slide analysts had estimated.Purchases from overseas were also being closely watched as a key gauge of consumer demand in China, which has remained sluggish.Policymakers this week eased key monetary policy tools in a bid to ramp up domestic activity.Those included cuts to a key interest rate and moves to lower the amount banks must hold in reserve in a bid to boost lending.A persistent crisis in the property sector — once a key driver of growth — also remains a drag on the economy.In an effort to help the sector, Pan also said the bank would cut the rate for first-time home purchases with loan terms over five years to 2.6 percent, from 2.85 percent.The moves represent some of China’s most sweeping steps to boost the economy since September.But analysts pointed to a continued lack of actual stimulus funds needed to get the economy back on track.

Trump unveils UK trade deal, first since tariff blitz

US President Donald Trump and British Prime Minister Keir Starmer unveiled a “historic” trade agreement Thursday, Trump’s first deal with any country since he unleashed a blitz of sweeping global tariffs.The deal will see Washington lower tariffs on British luxury cars and lifts them entirely on steel and aluminum, although a 10 percent baseline levy on British goods stays in place.As Trump announced the deal while making a phone call to Starmer in the Oval Office, he said Britain would in return will open up markets to US beef and other farm products.But the deal remained thin on details, despite Trump hailing it as a template for deals with other countries such as China after his “Liberation Day” tariffs in April.”I’m thrilled to announce that we have reached a breakthrough trade deal with the United Kingdom,” Trump said. “The deal includes billions of dollars of increased market access for American exports.”The deal came through at the last minute, with Starmer saying he learnt that Trump had given it his approval when he called him on Wednesday night as he watched a football match.”This is a really fantastic, historic day,” Starmer said during the call with Trump.He noted that it coincided with the 80th anniversary of “Victory Day” for allied forces — including Britain and the United States — over Nazi Germany in World War II.- ‘James Bond’ -Britain had made a major push to avoid Trump’s tariffs, which the Republican insists are necessary to stop the United States from being “ripped off” by other countries.Starmer launched a charm offensive as early as February when he came to the White House armed with an invitation from King Charles III for a historic second state visit for Trump.The reward came on Thursday, with a trade deal slashes export tariffs for British cars from 27.5 percent to 10 percent, Britain said. The move will apply to 100,000 vehicles from luxury makers like Rolls Royce and Jaguar, billionaire Trump added.”That is a huge and important reduction,” PM Starmer said during a visit to a Jaguar Land Rover factory in the central Midlands area of England.US automakers however said the deal “hurts” companies that have partnered with Canada and Mexico.The British government insisted that the deal to allow in more US agricultural products would not dilute British food standards, amid concerns over chlorinated US chicken and hormones in US beef.It also entirely lifts recently-imposed 25 percent tariffs on British steel and aluminium. World stock markets mostly rose on news of the deal but uncertainty remained over key issues.Trump said that “James Bond has nothing to worry about” from his threatened 100 percent tariffs on foreign movies, but did not spell out how Britain could get a carve out.The deal also failed to mention digital services, with the White House keen to tackle a recent digital services tax imposed by Britain on US tech giants.- ‘Maxed-out’ -Both sides said there would be further negotiations on a fuller deal, but Trump denied overselling the agreement.”This is a maxed-out deal — not like you said it really incorrectly,” he added, answering a reporter’s question on whether he was overstating the breadth of the deal.The deal is a fresh win for Labour leader Starmer after Britain this week struck a free-trade agreement with India, its biggest such deal since it voted to leave the European Union in 2016.Torturous negotiations between London and Washington in the years since the Brexit vote failed to produce a deal until now.But Trump has also been in need of a win after weeks of insisting that countries were lining up to make deals with the United States.Trump told reporters at the White House he was “working on three of them” and that the British deal could act as a template.US Commerce Secretary Howard Lutnick said most countries would still be hit with higher tariffs than the 10 percent baseline “Liberation Day” tariffs, and only the “best” would escape.Top US and Chinese officials are due to meet in Switzerland over the weekend to kickstart trade officials, the first official meeting since Trump’s tariffs plunged the world’s two largest economies into a trade war.

Chicken wings, trucks: the surprising Saudi obsession with America

During his nine years living in Tennessee, Fahd, a Saudi national, found comfort and consistency at Dunkin Donuts, where he placed the same order every day.Now back in Riyadh, Fahd is doing something similar, highlighting the Saudi Arabian love affair with all things American that many find surprising.”When I came here, thank God, the same cafe and same order were here too,” said the 31-year-old mechanical engineer, who did not want to give his family name.”I started living the same lifestyle here as I did in America.”Saudi Arabia, often known for its religious austerity, is home to Islam’s holiest sites, and welcomes millions of Muslim pilgrims ever year.It also has — as just one example — more than 600 branches of Dunkin Donuts, serving roughly 250,000 of its 35-million population each day, according to the franchise.Despite its image as a cloistered and traditional society, life in Saudi is awash in Western corporate influence, especially from American companies.Buffalo Wild Wings, Chuck-e-Cheese and Starbucks populate Riyadh’s sprawl of office parks and shopping centres, while the capital’s traffic-clogged streets heave with hulking American SUVs and pickup trucks.- ‘Every neighbourhood’ -The nations have shared a tight bond since King Abdulaziz bin Saud, the founder of modern Saudi Arabia, and US president Franklin Roosevelt shook hands on board a US cruiser in the Suez Canal during the final months of World War II.In the ensuing decades, the United States has been at the forefront of providing military protection in return for privileged access to Saudi’s colossal oil reserves.The Saudi riyal is pegged to the greenback and US leaders have been regular guests, including Donald Trump who arrives in Saudi Arabia on Tuesday on the first major overseas trip of his second term.The relationship has faced rough patches — including the oil embargo in the 1970s, the September 11, 2001 attacks carried out by mostly Saudi hijackers and the gruesome murder of US-based dissident journalist Jamal Khashoggi by Saudi agents in Istanbul in 2018. But for Saudis, the ties that bind, including a love of American food, cars and movies, remain strong — even after a grassroots campaign to boycott US products that has swept the region during the Israel-Hamas war.”The one thing we never disagree on is going to an American restaurant — especially Buffalo Wild Wings,” Dalal Abdulaziz, 28, told AFP, saying that chicken wings were one of her favourite foods.”You’ll find American restaurants in every neighbourhood here. We eat it weekly, almost like Saudi food.”Khaled Salman Al-Dosari agrees, saying it is hard to find a single street in Saudi Arabia without an American brand on offer.”American companies’ products have become an inseparable part of our day,” added the 21-year-old student in Riyadh. – Just like home -While many American companies have been in Saudi Arabia for decades, its Vision 2030 agenda — the oil-dependent country’s giant economic diversification plan — has opened it up and paved the way for further investment.Live music and cinemas were all forbidden until recent years, but MMA fights and US professional wrestling are now among the entertainment offers available to Saudi consumers.”I think many Americans would be surprised at the extent to which American brands are all over Saudi Arabia,” said Andrew Leber from the department of political science at Tulane University. Some see further correlations in terms of climate, architecture — dry, dusty Riyadh, with its wide concrete boulevards, evokes an Arab Dallas — and even mindset.”Texas is close to Riyadh in terms of climate,” said Fahd, the mechanical engineer.”And its people are conservative like us.”Meanwhile, the Saudi taste for US products has benefits for the tens of thousands of Americans working in the kingdom, many of them in the oil industry.”It always… reminds me of home and keeps that connection with the places that I’ve seen since I’ve been growing up,” said Joshua Dunning, a 36-year-old American business developer working at a Saudi tech firm.”It’s always a nice reminder and seeing those places and products here in Saudi.”

China can play hardball at looming trade talks with US: analysts

A formidable set of cards that includes granting access to its vast market and an ability to withstand economic pain will allow Beijing to play hardball in upcoming trade talks with the United States in Geneva, analysts say.Trade between the world’s two largest economies has nearly skidded to a halt since US President Donald Trump slapped China with various rounds of levies that began as retaliation for Beijing’s alleged role in a devastating fentanyl crisis.With additional measures justified by Trump as efforts to rebalance the trade relationship and prevent the United States from being “ripped off”, tariffs on many Chinese products now reach as high as 145 percent — with cumulative duties on some goods soaring to a staggering 245 percent.Beijing has responded with 125 percent tariffs on US imports, along with other measures targeting American firms.But after weeks of tit-for-tat escalation that sent global markets into a tailspin, the two powers will meet this weekend for a chance to break the ice.Washington has said it’s not expecting a “big trade deal” that could address Trump’s longstanding complaint about the major goods imbalance with the export powerhouse — but it is hoping the two sides can at least begin to de-escalate tensions.Beijing has vowed to stick to its guns and insisted its demand that all US tariffs be lifted remains “unchanged”.Analysts say, however, China is in no major rush to make a deal.”Beijing can impose some pain on the United States,” Chong Ja Ian, associate professor of political science at National University of Singapore, told AFP.China’s core strengths going into the talks are its huge domestic market, as well as “key technologies and control of a significant proportion of processed rare earth minerals”, Chong said.- ‘No wild bluster’ – Compared to its approach during Trump’s first term, Beijing’s response to his tariffs this time has been “more mature”, said Dylan Loh, an assistant professor at Singapore’s Nanyang Technological University.”There’s no wild bluster,” he explained.”I think they have learnt from their earlier responses and they know that they cannot be led by the nose,” he said.Analysts say China has been able to take more of a hardline posture to Trump’s tariffs this time, despite its struggling economy.”It still has meaningful retaliatory tools and — just as important — staying power,” said Lizzi Lee from the Asia Society Policy Institute’s Center for China Analysis.China’s autocratic system, she said, allowed it “to absorb economic pain in ways democracies often cannot”.Beijing has also concurrently launched a charm offensive aimed at tightening trade ties in Southeast Asia and Europe — positioning itself as a more stable and reliable partner in contrast to the mercurial Trump administration.That move allowed Beijing to “build buffers” against trade war vicissitudes, Lee said.”It won’t replace the US market overnight, but every incremental diversification reduces exposure and increases negotiating room,” she added.That’s not to say China isn’t hurting.Sales of Chinese goods to the US last year totalled more than $500 billion — 16.4 percent of the country’s exports, according to Beijing’s customs data.But as the effects of the trade war sunk in, China’s factory activity shrank in April, with Beijing blaming a “sharp shift” in the global economy.While not as colossal as China’s export levels, US shipments to the country last year were a considerable $143.5 billion, according to the US Trade Representative website.”Even in the case that one of the two countries would clearly have ‘the upper hand’, it is still worse off economically than before the trade war started,” said Teeuwe Mevissen, senior China economist at Rabobank.Beijing and Washington have “found out that it is not so easy to fully decouple”.- Talks about talks -Policymakers this week unveiled measures to boost domestic consumption — a sign that leaders are “not panicking but feeling some pressure”, said Shehzad Qazi, managing director of China Beige Book.Beijing will need to strap in for potentially long and drawn-out negotiations with Washington that could bring “much more volatility along the way”, said Qazi. Analysts broadly agree that upcoming talks are a first step towards a de-escalation of tensions that could, a long way down the line, lead to a lifting of tariffs.”A best-case scenario would be agreement around a process to enter future negotiations,” Ryan Hass, senior fellow at Brookings Institution, told AFP.Beijing could insist on receiving the same 90-day waiver on tariffs that other countries had received, he suggested.And China’s insistence that the Switzerland talks came at the request of Washington suggests it is the United States that is desperate for a deal, said Dan Wang, China Director at the Eurasia Group.”The fact that it is happening is showing some concessions already on the US side.”

Where things stand in the US-China trade war

US and Chinese officials meet this weekend in Geneva for their first formal talks aimed at resolving a gruelling tit-for-tat tariff war that threatens hundreds of billions in trade and roiled global markets and supply chains.AFP looks at how the trade row between the world’s two economic superpowers is playing out:- What steps have the two sides taken so far? -The United States has raised tariffs on Chinese imports to 145 percent, with cumulative duties on some goods reaching a staggering 245 percent.As well as the blanket levies, China has also been hit with sector-specific tariffs on steel, aluminium and car imports.Sales of Chinese goods to the United States last year totalled more than $500 billion — 16.4 percent of the country’s exports, according to Beijing’s customs data.Beijing has vowed to fight the measures “to the end” and has unveiled reciprocal tariffs of up to 125 percent on imports of American goods, which totalled $143.5 billion last year, according to Washington.China has filed complaints with the World Trade Organization (WTO), citing “bullying” tactics by the Trump administration.And it has gone after US companies, scrapping orders for Boeing planes, probing Google for “anti-monopoly” violations and adding fashion group PVH Corp. — which owns Tommy Hilfiger and Calvin Klein — and biotech giant Illumina to a list of “unreliable entities”.Beijing has also restricted exports of rare earth elements — critical for making a wide range of products including semiconductors, medical technology and consumer electronics.- What’s been the impact? – Beijing has long drawn Trump’s ire with a trade surplus with the United States that reached $295.4 billion last year, according to the US Commerce Department’s Bureau of Economic Analysis. Chinese leaders have been reluctant to disrupt that status quo.But an intensified trade war could mean China cannot peg its hopes for strong economic growth this year on exports, which hit a record high in 2024.US duties further threaten to harm China’s fragile post-Covid economic recovery as it struggles with a debt crisis in the property sector and persistently low consumption.The tariff war is already having an impact in the United States, with uncertainty triggering a manufacturing slump last month and officials blaming it for an unexpected economic contraction during the first three months of the year.”Both countries have surely found out that it is not so easy to fully decouple,” Teeuwe Mevissen, senior China economist at Rabobank, told AFP.”Both the US and China lose economically with the current trade war,” he said, adding that even in the case that one side gains the upper hand “it is still worse off economically than before the trade war started”.The head of the WTO warned in April that the US-China standoff could cut trade in goods between the two countries by 80 percent.Beijing announced a raft of interest rate cuts on Wednesday aimed at boosting consumption — a possible sign that it is starting to feel the pinch.Analysts expect the levies to take a significant chunk out of China’s gross domestic product, which Beijing’s leadership have targeted to grow five percent this year.Likely to be hit hardest are China’s top exports to the United States — this includes everything from electronics and machinery to textiles and clothing.And because of the crucial role Chinese goods play in supplying US firms, the tariffs may also hurt American manufacturers and consumers, analysts have warned.- Is a breakthrough possible? -Both sides insist that economic pressures have driven the other to seek negotiations.But while markets have welcomed the talks, a major breakthrough in Geneva seems unlikely.China has insisted its position that the United States must lift tariffs first remains “unchanged” and vowed to defend its interests.US Treasury Secretary Scott Bessent has said the meetings will focus on “de-escalation” — and not a “big trade deal”.But analysts do expect some form of tariff reduction to be announced following Saturday’s ice-breaking exercise.”One possible outcome of the Switzerland talks is an agreement to pause most, if not all, of the tariffs that have been imposed this year while negotiations take place,” Bonnie Glaser, managing director of the German Marshall Fund’s Indo-Pacific program, told AFP.Lizzi Lee from the Asia Society said she expected “a tentative, symbolic gesture — designed to lower temperatures, not resolve core disputes”.”Stabilisation and guardrails are the most likely outcomes.”

Chinese fabric exporters anxious for US trade patch-up

Surrounded by samples of silk and glittering tweed in one of China’s largest fabric markets, textiles exporter Cherry said she was anxiously awaiting the result of trade talks with the United States this weekend.Her company, which relies on US customers for around half its client base, is one of many caught in the crosshairs as the standoff between Washington and Beijing has escalated this year. Cherry has already had US orders cancelled, and is desperately hoping the negotiations starting Saturday in Geneva will result in the rolling back of the reciprocal tariffs that make doing business almost impossible.”The situation will be very bad if this continues,” she said, sceptical of claims her industry would be able to weather prolonged levies.”A few months ago I heard people say they’d had many containers (of goods) being cancelled… Some factories have already had to stop production.” Sales to the United States made up 18 percent of China’s total textiles and apparel exports in 2024, according to Moody’s Ratings. A significant proportion of that comes from the eastern manufacturing powerhouse province of Zhejiang, where the labyrinth-like Keqiao China Textile City is based in the city of Shaoxing. With a listed 26,000 shops selling everything from velvet to rayon to fake fur, it is touted as one of the world’s busiest fabric hubs. But customers were few and far between when AFP visited on a day of torrential rain this week, with vendors’ spirits largely dampened too.  “Of course I am afraid,” said one woman surnamed Li, who added that business was already affected by the global turmoil.  “This is my job — I rely on it to support my family… I hope for a good outcome (for the talks).”- ‘Lose-lose scenario’ -The Geneva talks are the first official public engagement between the two sides aimed at resolving the stand-off triggered by US President Donald Trump’s wide-ranging tariffs. The subsequent tit-for-tat means many Chinese goods entering the United States now face duties of 145 percent — with some specific sectors even higher — while Beijing has hit back with 125 percent levies on most US goods.   One seller in Keqiao market described the situation as a “lose-lose scenario”.  Some of her colleagues’ US customers have agreed to pay a 30 percent non-refundable deposit to initiate production, on the understanding that the whole order can be cancelled if the final tariff level after negotiations is still too high. If that happens, everyone will lose money. “We basically don’t dare to take US orders anymore,” said 66-year-old Zhou, standing in front of swaths of khaki in various hues. “The cost price can’t even be covered, especially with such high tariffs added on.”For companies like his daughter’s, which dealt mainly with US clients, “the impact is huge”, he said. “The best outcome would be for everyone to sit down and talk things through — it would be good for everyone, right?” Even the hint of de-escalation has brought some back to the table, with one exporter telling AFP a client who had suspended orders had recently given the go-ahead for production to begin.But at a ski suit workshop in a cross-border e-commerce centre a few kilometres away, 31-year-old Xiao Huilan said a lot of local companies had lost out completing production for orders that had subsequently been reduced or held off. “In the short term, we can manage, but in the long run, businesses can’t sustain it,” she said. “In a trade war, no one really wins. What we hope for is reconciliation, where everyone can coexist and prosper together.”

SNCF: la grève des chefs de bord perturbe peu le trafic TGV

La SNCF a prévu de faire rouler plus de neuf TGV sur dix en France pour le premier jour de la grève des contrôleurs vendredi et a promis de permettre à tous ses clients dont le train a été annulé d’en réserver un autre le jour même, sans frais.Environ 60% des chefs de bord se sont déclarés grévistes sur le TGV vendredi. La SNCF a pourtant assuré “que tous les voyageurs pourront voyager le jour prévu vers leur destination”.Le syndicat SUD-Rail et un collectif de contrôleurs baptisé Collectif national ASCT (CNA) ont appelé à la grève les 9, 10 et 11 mai pour réclamer une augmentation de leur prime de travail et une meilleure anticipation des plannings, trop souvent modifiés à la dernière minute d’après eux.Selon la direction du groupe public, le taux de grévistes devrait dépasser les 60% le samedi, avant un retour au niveau de vendredi le dimanche. Sur l’ensemble du week-end, la direction prévoit un trafic normal à 96% sur les TGV.La plupart des trains pourront rouler grâce au déploiement de volontaires, cadres dans l’entreprise, qui ont reçu des formations spéciales d’une journée pour remplacer les contrôleurs grévistes dans les trains.SNCF Voyageurs a également promis d’offrir à toutes les personnes dont le train a été annulé un bon de réduction de 50% sur leur prochain voyage. Les trains régionaux, qui peuvent circuler sans chef de bord, rouleront eux normalement vendredi et samedi ainsi que les trains Intercités. Le réseau francilien de la SNCF (transilien), qui comprend plusieurs lignes ou portions de RER, doit aussi connaître un trafic normal, a indiqué la SNCF.La CGT-Cheminots, première organisation syndicale à la SNCF, a d’ores et déjà prévu une poursuite de la mobilisation en juin.L’organisation a lancé mercredi un appel à la grève le 4 juin pour les conducteurs, en marge d’une table ronde consacrée à la prime dont ils bénéficient, le 5 juin pour toutes les catégories de cheminots, avec des revendications portant sur les salaires ou l’amélioration des conditions de travail, et le 11 juin pour les contrôleurs.Au début de cette semaine, une grève des conducteurs à l’appel de la CGT-Cheminots a provoqué des perturbations sur les lignes régionales dans plusieurs régions comme les Hauts-de-France ou l’Ile-de-France.D’après SNCF Voyageurs, “environ neuf TER sur dix auront circulé en France (pendant cette grève), et environ huit Transilien (trains de banlieue parisienne) sur dix, avec des disparités selon les régions ou les lignes”. Mercredi, SUD-Rail revendiquait 40% de conducteurs grévistes dans tout le pays et jusqu’à un train régional sur deux annulé en Ile-de-France.