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Stockpiling is the reflex response by firms to the imposition of tariffs, but with the rapidly-changing position of the Trump administration, companies are finding that it isn’t so straightforward this time around.Whether it’s the luxury, electronics or pharmaceutical sectors, US President Donald Trump’s unpredictability complicates the calculations of firms.Some companies didn’t wait for Trump’s April 2 announcement of massive “reciprocal” trade tariffs: they had already begun shipping more of their goods to the United States.In the end, Trump backed down quickly on the “reciprocal” tariffs, pausing them for 90 days except for China.That still left the global 10 percent tariff in place, as well as the 25 percent tariffs on European steel, aluminium and cars.French cosmetics firm Clarins didn’t hesitate and stepped up shipments to the United States at the beginning of the year.”We’ve built up three months of stocks, which represents $2 million in goods,” said Lionel Uzan, the head of Clarins’s US operations.With all of its products made in France, Clarins had few other options to mitigate the tariffs.- Discreet stockpiling -Even if they don’t all acknowledge it so openly, firms in many different sectors are stockpiling their products in the United States.In March, exports of Swiss watches to the United States jumped nearly 14 percent compared to the same month last year.More striking is Ireland, which plays host to a number of international pharmaceutical firms.Its exports to the United States jumped 210 percent in February to nearly 13 billion euros ($14.8 billion), with 90 percent of those being pharmaceutical products and chemical ingredients.Fermob, a French manufacturer of metal garden furniture that sells around 10 percent of its products in the United States, said it began planning for US tariffs once the result of the presidential election became known in November.It stepped up production in January and February.”We’ve sent around 30 percent of our extra stock to the United States,” said the company’s chief executive, Baptiste Reybier.That extra production has benefitted transportation firms.Lufthansa Cargo said it has seen in recent weeks “an increase in demand for shipments to the United States”.The trade war “has incited companies to accelerate certain stages in their supply chains”, it told AFP.”A similar trend was seen for the delivery of cars from the EU to the United States,” it said.The phenomenon also concerns US-made goods.The Japanese newspaper Nikkei reported recently that Chinese tech firms were snapping up billions of dollars of artificial intelligence chips made by US firm Nvidia in anticipation of Washington imposing export restrictions.- ‘Short-term approach’ -Stockpiling is not a solution, however, said analysts.Matt Jochim, a partner at consulting firm McKinsey who helps companies with supply chain issues, called stockpiling “a very short-term opportunistic” move.He said the practice has limits as tariffs are constantly changing and it isn’t always practicable.”In a lot of the electronics space, it’s also hard to do, because the technology changes so quickly, you don’t want to get stuck with inventory of chipsets or devices that are the prior version,” he said. Fermob said it was taking a measured approach to stockpiling.”Otherwise you’re replacing one risk with another,” the manufacturer’s Reybier said.”You have to finance stocks and there is also the risk of not having sent the right product.”Having a local subsidiary with warehouses also helped, Reybier added.”It’s too early to say whether we should have sent more or not.”

At a mountainside cafe in southwestern China, Liao Shihao brews handfuls of locally grown beans into steaming cups of coffee, a modern twist on the region’s traditional drink.For centuries, Pu’er in Yunnan province has given its name to a type of richly fermented tea — sometimes styled “pu-erh” — famous across East Asia and beyond.But as younger Chinese cultivate a taste for punchy espressos, frothy lattes and flat whites, growers are increasingly branching out into tea’s historic rival.”People are coming to try our hand-drip coffee… and more fully experience the flavours it brings,” Liao, 25, told AFP.”In the past, they mostly went for commercialised coffee, and wouldn’t dabble in the artisanal varieties,” he said.Liao’s family has run the Xiaowazi, or Little Hollow, coffee plantation for three generations.Nestled in a shady valley, spindly coffee trees line its steep hillsides, their cherry-like fruit drying on wooden pallets outside.When AFP visited this month, clusters of tourists sipped boutique brews in the airy cafe overlooking its verdant slopes.”It’s very good,” said Cai Shuwen, 21, as he perched on a bar stool lifting sample after sample to his lips.”Even though some beans are more astringent than I imagined, others have exceeded my expectations.”- Brewing success -Every year, Pu’er’s plantations sell tens of thousands of tons of coffee to major Chinese cities, according to government data.In metropolises such as Beijing and Shanghai, a thriving cafe scene has emerged in recent years, driven by people aged between 20 and 40.To Liao, a trained roaster and barista, coffee from his home region possesses “a creamy flavour with a silky, viscous mouthfeel”.Modern commercial plantations only sprang up in Pu’er in the 1980s, and the area is still better known for its centuries-old tea trade.Liao’s grandfather, Liao Xiugui, said “nobody knew anything about coffee” when he arrived in Pu’er a few decades ago.At the time, the older man was one of very few people in China who had studied coffee cultivation.But the region’s relatively high altitude and temperate climate were well-suited to the unfamiliar crop, the now 83-year-old told AFP.”The quality of the coffee we plant here is strong but not too bitter, floral but not too heady, and slightly fruity,” he added.Free from artificial pesticides and interspersed with other species for biodiversity, Little Hollow yields about 500 tons of raw coffee fruit per year.Liao Xiugui himself drinks two or three cups a day, and credits the caffeinated beverage for keeping him spry in his advanced years.”Drinking coffee can make you younger and healthier… and prevent ageing,” he smiled.”Also, everyone is tired at work these days… and they want to give their brains a boost.”- Richer pickings -China’s coffee output has risen dramatically in recent years, though it still lags far behind traditional powerhouses such as Brazil, Vietnam and Colombia.Yunnan, near three borders with Southeast Asian nations, accounts for virtually all of China’s coffee production, much of it concentrated in Pu’er.On a visit to Yunnan last month, President Xi Jinping said the province’s coffee “represents China”, according to state media.Keen to further expand the sector, officials have rolled out policies to improve production, attract investment and boost exports, according to government statements.They have also merged coffee production with tourism, dovetailing with a central government push to increase domestic consumption.Longtime farmer Yu Dun, 51, said she had opened new income streams with plantation tours, homestays and a restaurant fusing coffee with the cuisine of her native Dai ethnicity.Her prospects were bright, she said, adding that she also earned “10 times” more revenue from her beans since learning to process and roast them herself.”We used to say only rich people could drink coffee, but that’s all changed now,” she said.

In fluid synchronisation, dozens of robotic arms picked up metal parts and welded them onto vehicle beds, as car skeletons gradually took shape and progressed along an automated factory floor near the eastern Chinese city of Ningbo.Across the country, car models rolling off assembly lines like this have gone from concept to release in record time — known in the industry as “China Speed”, the envy of foreign competitors.At EV firm Zeekr’s vast Ningbo plant, advanced robotics and artificial intelligence have been leveraged at every stage of the manufacturing process to save huge amounts of time and money.In the casting shop, a robotic arm that towered over the human foremen supervising it picked up a freshly made piece of aluminium and dunked it into a vat of water, sending steam hissing out, before passing the metal to another machine to cut and press it.The factory still employs around 2,500 workers to do some delicate tasks and for quality control. But the heavy lifting is done by hundreds of tireless robots, with some processes going on 24 hours a day. And it’s not just manufacturing that has been accelerated. Zeekr has a research and development base in Sweden, which allows workloads to be shared across timezones. Its parent company, Geely, also owns Swedish automaker Volvo.In the factory’s car park, hundreds of gleaming, plate-less Zeekr 7X SUVs stood ready to be transported to dealerships. “The future is our history,” read a slogan above the entrance hall.- ‘Make-or-break moment’ -Factories and companies like this have set a new pace in the industry. “We are at a make-or-break moment for established global automakers,” a recent report by consulting firm Bain & Company said. En route to the factory, AFP saw lorries carrying brand new Zeekr cars headed to Ningbo’s huge port, bound for export to places like Australia.The most innovative Chinese manufacturers spend less than a third of that spent by traditional competitors to develop new vehicles, the Bain report said.While legacy automakers often take 48 to 54 months to bring out new models, the timeline for younger brands is more like 24 to 30, it added. Some of Zeekr’s models only took 15 months to develop, a spokesman told AFP.  The results are clear in the sheer choice available to consumers: There are currently 2,755 models on offer from 163 brands in the Chinese market, authorities say.At industry show Auto Shanghai, which opened Wednesday, more than 100 new models were launched. Jostling in the pack were not just Chinese firms like Zeekr, BYD and Chery, but also foreign rivals hitting the gas to catch up. Volkswagen and Nissan launched tens of new models developed “in China for China” at the show, with executives insisting they had adapted to “China Speed”.The acceleration has been helped by the shift towards EVs, disposing of the complex internal combustion engine.   “You start by designing the car virtually, making as few prototypes as possible, so you can move very quickly,” BCG consultant Mikael Le Mouellic told AFP. Design and engineering will then work hand-in-hand, and often “reuse recipes that work”, he added. Zeekr’s “Sustainable Experience Architecture”, for example, can be the bed for A-class to E-class cars, saving time and money. – Three years to nine months -Foreign suppliers have also had to adapt. Traditionally, companies could take up to three years to design, for example, a new headlamp, said Michael Fischer, boss at French automotive parts maker Forvia. “In China that doesn’t work,” he said. Now, “we have a process that is going to be very organised, that’s going to secure for quality, but can bring up a new headlamp in as little as nine months”.At competitor Valeo’s factory in Changshu, north of Shanghai, four large robots assembled LED headlamps for Zeekr and other brands. “We don’t work 24/7!” joked Valeo’s innovation manager in China, Gu Jianmin. “But we use existing solutions, and we work upstream with the automakers.”Development and durability tests that “would have taken months” are helped along by AI and other technology. “Chinese manufacturers are a little more demanding. But foreigners are trying to catch up,” said Gu. “To emerge in China, you have to be at the same level as the locals.”

President Xi Jinping said China must “overcome” the challenges of developing core AI technologies including high-end chips, state media reported Saturday, as Beijing seeks to become a world leader in the rapidly developing industry.China aims to dominate the artificial intelligence sector, a goal complicated by the trade standoff with Washington that could further deprive Chinese industry of certain key technologies.The world’s two leading economies are locked in an escalating tit-for-tat trade battle triggered by US President Donald Trump’s new levies on Chinese goods, which have reached 145 percent on many products. Beijing has responded with new 125 percent duties on imports from the United States.In this context, Xi called for “continuing to strengthen basic research, focusing our efforts on overcoming challenges in key technologies such as advanced chips and core software, and building an autonomous AI system,” according to Xinhua news agency.Xi made the remarks during a quarterly meeting of the Politburo, the inner circle of China’s top leaders.Since the launch of ChatGPT in November 2022, generative AI models have proliferated in the United States and China.Chinese startup DeepSeek shook up the AI world in January with its R1 chatbot, matching the performance of its US competitors at a lower cost. – ‘Promote self-reliance’ -But Xi acknowledged Friday that the Chinese industry still had “gaps”. It was “essential” to “promote self-reliance” in the field, he added.Political support was essential to achieve this, Xi stressed, citing in particular “a combination of policies such as intellectual property rights, taxation, public procurement, and the opening up of infrastructure”.Under Trump and his predecessor Joe Biden, Washington has banned or restricted exports to China of advanced processors which are known for helping develop high-end AI models.The Trump administration has imposed new licensing requirements to export to China some chips used in AI, which US firms Nvidia and AMD have said will hit them hard. Nvidia CEO Jensen Huang visited Beijing this month and said he was “willing to continue to plough deeply into the Chinese market and play a positive role in promoting US-China trade cooperation”, Xinhua reported.Washington’s controls are officially imposed in order to prevent China developing military technologies, but they also allow the United States to maintain its competitive edge.China’s AI ambitions have prompted concern in numerous countries worried about the handling of personal data, particularly the possibility that such information could be transferred to Chinese authorities.

Rapidly deteriorating relations between India and Pakistan over a deadly shooting in Kashmir are starting to have small but prickly economic consequences for both nations.The killing of 26 men on Tuesday in Indian-administered Kashmir, the deadliest attack on civilians in the Himalayan region in a quarter of a century, triggered public outrage across the world’s most populous country.India has unveiled a series of mostly symbolic diplomatic measures against Pakistan, after accusing its regional rival of supporting “cross-border terrorism”.Islamabad, which rejected the allegations, responded Thursday with similar tit-for-tat measures — but upped the ante by halting trade with New Delhi and closing its airspace to Indian airlines. Experts say that while the retaliatory moves will not have an immediate or far-reaching impact, it will likely result in longer and more expensive flights for Indians, while forcing Pakistan to increase pharmaceutical imports from other countries.Pakistan’s decision to close its airspace to carriers from its neighbour will see journeys from India to Central Asia, Europe and North America take up to two hours longer.”We are currently looking at, on average, an extra 60 minutes to 120 minutes for flights depending on where they go,” Sanjay Lazar, aviation expert and CEO of Avialaz Consultants, told AFP. – ‘Sabre rattle’ -Pakistan’s move is expected to hurt Air India, owned by Indian conglomerate Tata Group, the most.Air India said that some flights to North America, Europe and the Middle East will have to take an “alternative extended route”.And the extra flying time may eventually make flights more expensive.”There is extra fuel burn, because you’re taking a more circuitous route,” Lazar said.”And if you add an extra stop on the route, then you incur additional crew and landing costs too.”Airfares could rise if restrictions continue beyond six months, though airlines are unlikely to hike up fares immediately to avoid the risk of “not appearing patriotic enough”, he added.Mark D Martin, of Martin Consulting, said ticket prices could rise by more than 35 percent to Middle East destinations and by over 45 percent to Europe.”It’s always the airline business that gets impacted when India and Pakistan spar and sabre rattle,” Martin said.”Let’s hope better sense prevails, and this situation deescalates, as this will have an earning impact on airline financials.”Indian government data shows that when Islamabad closed its airspace in 2019 — after New Delhi hit it with airstrikes in response to an attack in Kashmir — domestic airlines saw a financial cost of nearly 5.5 billion rupees ($64.3 million) during the nearly five-month-long shutdown.- Third country trade -But analysts say Pakistan’s decision to halt trade is unlikely to have a major impact, as regular diplomatic flare-ups between the two nations over decades have prevented close economic ties.India exported less than $450 million in goods to Pakistan between April 2024 and January 2025, a tiny fraction of its overall shipments.Key items included pharmaceutical products worth over $110 million, and sugar worth over $85 million.”Imports from Pakistan were negligible — just $0.42 million, limited to niche items like figs, basil and rosemary herbs,” Ajay Srivastava of Global Trade Research Initiative, a New Delhi-based think tank, said in a briefing note.But Islamabad also said Thursday it had suspended “all trade with India” including “to and from any third country through Pakistan”.It is not immediately clear how this would impact indirect trade through countries such as the United Arab Emirates or Singapore. Indirect trade is far higher, totalling around $10 billion, according to Srivastava.”Informal sources say that Pakistan imports several Indian products this way, including chemicals, pharmaceuticals, cotton and yarn,” he said.”On the other hand, India may receive Himalayan pink salt and dry fruits such as dates, apricots, and almonds from Pakistan, also routed through third countries.”

Wall Street stocks overcame early weakness Friday to push higher for a fourth straight positive session, following gains in most overseas equity markets.The upbeat session reflected a continuation of the market’s constructive trend after President Donald Trump said Tuesday he has no intention of firing Federal Reserve Chair Jerome Powell.The administration has also adopted a more conciliatory tone on trade talks with China, although the state of play between Washington and Beijing remains murky.Beijing has said there are no active negotiations with the United States, while Trump claimed to have spoken with Chinese leader Xi Jinping.TIME Magazine wrote Friday that Trump said in an interview he was still convinced tariffs were necessary and that he would “consider it a ‘total victory’ if the US still has tariffs as high as 50 percent on foreign imports a year from now.”City Index and FOREX.com analyst Fawad Razaqzada called the comments “an aggressive reminder that underscores his protectionist trade agenda, even if he has promised to reduce tariffs on Beijing significantly.”He added that the comments “probably caused the mild selling” trend.But US stocks recovered from early losses and two of the three major indices posted solid gains, with the S&P 500 finishing up 0.7 percent.Europe’s main markets ended higher as did most Asian markets.Sentiment was boosted by reports on Friday that China may exempt some US goods from its hefty retaliatory tariffs. “While tariffs are unlikely to go away completely, any easing of the trade war will be lapped up by financial markets,” said Russ Mould, investment director at AJ Bell.Equity markets “are also benefitting from strong earnings reports,” said Kathleen Brooks, research director at trading group XTB.”Google reported earnings that smashed expectations last night,” she added.Google-parent Alphabet posted earnings that exceeded expectations for the recently ended quarter, driven by its cloud computing and artificial intelligence operations.In Asia, Tokyo jumped almost two percent by the close following Japanese media reports that a second round of trade talks in Washington was set for May 1.The discussions will be closely watched as a barometer for efforts by other countries seeking tariff relief.Chinese stock indices ended the week fairly steady, as China’s top leaders urged more support for the economy and opposed “unilateral bullying” in global trade, according to a readout of a meeting published by state media Friday.Seoul jumped one percent after US Treasury Secretary Scott Bessent said a trade “understanding” between South Korea and the United States could be reached by next week.Analysts are beginning to look ahead to next week’s heavy calendar of earnings and US economic data.The “soft data has been showing very negative signs for the economy, but it hasn’t really gone through to the hard data,” said Victoria Fernandez of Crossmark Global Investments.Reports next week on the labor market and other key indicators will show if “we are truly weakening or not,” Fernandez said.- Key figures at 2030 GMT -New York – Dow: UP 0.1 percent at 40,113.50 (close)New York – S&P 500: UP 0.7 percent at 5,525.21 (close)New York – Nasdaq Composite: UP 1.3 percent at 17,382.94 (close)London – FTSE 100: UP 0.1 percent at 8,415.25 (close)Paris – CAC 40: UP 0.5 percent at 7,536.26 (close)Frankfurt – DAX: UP 0.8 percent at 22,242.45 (close)Tokyo – Nikkei 225: UP 1.9 percent at 35,705.74 (close)Hong Kong – Hang Seng Index: UP 0.3 percent at 21,980.74 (close)Shanghai – Composite: DOWN 0.1 percent at 3,295.06 (close)Euro/dollar: DOWN at $1.1359 from $1.1390 on ThursdayPound/dollar: DOWN at $1.3314 from $1.3342 Dollar/yen: UP at 143.69 yen from 142.63 yenEuro/pound: DOWN at 85.31 pence from 85.37 penceWest Texas Intermediate: UP 0.4 percent at $63.02 per barrelBrent North Sea Crude: UP 0.5 percent at $66.87 per barrelburs-jmb/des

Wall Street stock markets wobbled Friday after President Donald Trump indicated he envisages stiff US tariffs even after reaching trade deals.The pullback came after a three-day rally based in large part on hopes that the United States would reach trade deals with its major partners.TIME Magazine wrote Friday that Trump said in an interview he was still convinced tariffs were necessary and that he would “consider it a ‘total victory’ if the US still has tariffs as high as 50 percent on foreign imports a year from now.”City Index and FOREX.com analyst Fawad Razaqzada called the comments “an aggressive reminder that underscores his protectionist trade agenda, even if he has promised to reduce tariffs on Beijing significantly”. He added that the comments “probably caused the mild selling” trend.While the Trump administration has gone forward with 145-percent tariffs on most goods from China, it suspended high tariffs on other countries for three months as it pursues trade deals.Europe’s main markets ended higher as did most Asian markets.Sentiment was boosted by reports on Friday that China may exempt some US goods from its hefty retaliatory tariffs. “While tariffs are unlikely to go away completely, any easing of the trade war will be lapped up by financial markets,” said Russ Mould, investment director at AJ Bell.Equity markets “are also benefitting from strong earnings reports,” said Kathleen Brooks, research director at trading group XTB.”Google reported earnings that smashed expectations last night,” she added.Google-parent Alphabet posted earnings that exceeded expectations for the recently ended quarter, driven by its cloud computing and artificial intelligence operations.Its shares were up 1.8 percent in midday trading.Paris and Frankfurt stocks closed the day with gains as investors brushed off comments from France’s economy minister Eric Lombard that a trade deal between the United States and the European Union was a way off.London’s stock market edged higher following positive UK retail data.In Asia, Tokyo jumped almost two percent by the close following Japanese media reports that a second round of trade talks in Washington was set for May 1.The discussions will be closely watched as a barometer for efforts by other countries seeking tariff relief.Chinese stock indices ended the week fairly steady, as China’s top leaders urged more support for the economy and opposed “unilateral bullying” in global trade, according to a readout of a meeting published by state media Friday.Seoul jumped one percent after US Treasury Secretary Scott Bessent said a trade “understanding” between South Korea and the United States could be reached by next week.Investors are optimistic also that the US Federal Reserve may cut interest rates sooner than expected.Fed Governor Christopher Waller said during an interview with Bloomberg Television that he would support interest rate cuts if harsh tariffs hurt the jobs market.The dollar made solid gains versus main rivals Friday, while crude prices were kept on the back foot by fears that the OPEC oil cartel and its allies will step up production further.- Key figures at 1530 GMT -New York – Dow: DOWN 0.6 percent at 39,859.00 pointsNew York – S&P 500: FLAT at 5,482.79 New York – Nasdaq Composite: UP 0.3 percent at 17,223.58London – FTSE 100: UP less than 0.1 percent at 8,415.25 (close)Paris – CAC 40: UP 0.5 percent at 7,536.26 (close)Frankfurt – DAX: UP 0.8 percent at 22,242.45 (close)Tokyo – Nikkei 225: UP 1.9 percent at 35,705.74 (close)Hong Kong – Hang Seng Index: UP 0.3 percent at 21,980.74 (close)Shanghai – Composite: DOWN 0.1 percent at 3,295.06 (close)Euro/dollar: DOWN at $1.1369 from $1.1392 on ThursdayPound/dollar: DOWN at $1.3311 from $1.3339 Dollar/yen: UP at 143.95 yen from 142.62 yenEuro/pound: UP at 85.41 pence from 85.35 penceWest Texas Intermediate: FLAT at $62.77 per barrelBrent North Sea Crude: DOWN 0.1 percent at $65.58 per barrelburs-rl/db

Chinese companies such as BYD made their name producing some of the world’s best electric vehicles ahead of the curve but they have turned to an old-school solution to extend the range of some of their newest models — the petrol generator. At the huge industry show Auto Shanghai this week, BYD’s luxury Yangwang U8 SUV and other electric models such as Chery’s Exeed ET promised an unusually long range of more than 1,000 kilometres (620 miles).The secret is a small petrol generator, known as a range extender, which is connected to the cars’ batteries and feeds them only when needed.Because the range extender is not connected to the wheels, the vehicles, known as EREVs, always run in 100 percent electric mode even though they consume petrol and emit toxic gases.This technology grew faster in China last year than any other type of powertrain, the system that propels a vehicle forward. More than one million EREVs were sold, representing a total market share of six percent, according to the McKinsey consultancy.Range extenders are rare elsewhere at the moment but that could soon change.In the United States, Stellantis plans to offer an EREV version of its star pick-up, the Ram 1500, while its Chinese partner Leapmotor has already launched its C10 SUV in Europe. Volkswagen has plans to launch an EREV Scout pickup in the United States after unveiling an EREV SUV at Auto Shanghai as part of its renewed push into China. Horse Powertrain, a joint venture between France’s Renault and China’s Geely, also presented an engine that can be installed in an electric model.- Global expansion? -EREVs fall into the category of rechargeable hybrids, which are seen by manufacturers as a good bet in Europe and North America where electrification has been slower than expected. They pollute less than petrol cars if they are properly charged, while also assuaging driver concerns about range. According to a survey published by McKinsey on Tuesday, once the concept has been explained, almost a quarter of customers questioned in Europe and the United States said they would consider choosing an EREV as their next car. “This is a real use identified for the United States, for very American needs,” said Stellantis’ Sebastien Jacquet.They are suitable for long journeys but also work well for “pick-ups for towing boats, for example”. While an electric vehicle has towing capacity, its battery only lasts 100 kilometres, Jacquet said.The road ahead is less clear in Europe.Unlike in the United States, there is a planned transition to a 100 percent electric car market, warned Alexandre Marian of AlixPartners, “the cut-off point of 2035”.Some, notably Germany, want exceptions for non-electric but less polluting motors. “Who would now invest into new capacities if you know that there’s a natural end to it in 2035?” asked Holger Klein, head of German equipment manufacturer ZF. “That’s why we need to solve this very soon,” he said.Range extenders are a “very good opportunity to reduce the entry cost for people to come to electric mobility”, said Volkswagen boss Oliver Blume on Tuesday.However, “in the long term I see the electric mobility as superior”, he said.In a few years, Blume said, battery development will have progressed to the point where those longer ranges will be achievable by pure electric vehicles.

US President Donald Trump has insisted Chinese leader Xi Jinping called him despite Beijing denials of any contact between the two countries over their bitter trade dispute.In an interview conducted on April 22 with TIME Magazine and published Friday, the US president did not say when the call took place or specify what was discussed.”He’s called,” Trump said. “And I don’t think that’s a sign of weakness on his behalf.”Chinese Commerce Ministry spokesman He Yadong told reporters Thursday that “I would like to emphasize that there are currently no economic and trade negotiations between China and the United States.”The world’s two biggest economies are locked in an escalating tit-for-tat trade battle triggered by Trump’s levies on Chinese goods, which have reached 145 percent on many products.Trump suggested he will announce deals with US trading partners in the next few weeks.”I would say, over the next three to four weeks, and we’re finished, by the way,” he said.”There’s a number at which they will feel comfortable,” Trump told the magazine, referring to China. “But you can’t let them make a trillion dollars on us.”The tariff blitz — which Trump says is retaliation for unfair trade practices, as well as a bid to restore US manufacturing prowess — has rattled markets and raised fears of a global recession.

TikTok abounds with viral videos accusing prestigious brands of secretly manufacturing luxury goods in China so they can be sold at cut prices.But while these “revelations” are spurious, behind them lurks a well-oiled machine for selling counterfeit goods that is making the most of the confusion surrounding trade tariffs.Chinese content creators who portray themselves as workers or subcontractors in the luxury goods business claim that Beijing has lifted confidentiality clauses on local subcontractors as a way to respond to the huge hike in customs duties imposed on China by US President Donald Trump.They say this Chinese decision, of which AFP has found no trace, authorises them to reveal the hidden underbelly of luxury goods manufacturing in China.They encourage Western consumers to buy directly from the websites selling these goods, which bear no logos or labels but are said to be of the same quality and design as the expensive originals.The prices are alluring too, dropping from $38,000 for a luxury bag to $1,400.Brands targeted — which include Hermes, Chanel and Louis Vuitton, whose goods are produced in Europe and the United States according to their websites — declined to respond to AFP questions about the claims made in these viral videos.But for Jacques Carles, head of the French Luxury and Design Centre, a management consultancy, the notion that luxury brands would manufacture goods in China is simply “absurd”.”It would be suicidal. If there was evidence — and there isn’t — it would be the end. These brands aren’t stupid,” he told AFP.While the TikTokers point to the skill of the Chinese workers, presented as the little hands behind the big luxury names, “these counterfeit workshops absolutely do not respect all the required stages in the manufacturing process”, he said.- ‘Creating doubt’ -Carles cited the example of Hermes’s Birkin bag, which requires “hundreds of hours of work” to produce.He said the internet clip makers were, “by creating doubt”, actually looking to “open up an opportunity… to shift their stocks” of counterfeit goods.”It’s a viral campaign that’s spread on social networks (and) is difficult to counter,” he said.Luxury brands chose to remain silent and “treat the phenomenon with scorn”, which was a mistake in his view, he added.The accusation that luxury goods officially manufactured in Europe were in reality being secretly made in China “does not make any sense”, concurred Michel Phan, professor of luxury marketing at emlyon business school in France.He rejected the argument made on TikTok that this was a Chinese retort to US trade tariffs.”Hurting European luxury brands will not change anything (for) the US government because they are not related to those brands,” he said.”All the videos online mentioning that luxury brands manufactured their products in China and then put the ‘Made in France’ label before selling them are nonsense.”It is illegal to do so and no brand will take the risk to get caught (sic) doing it.”The e-commerce department at China’s trade ministry said in a statement: “Any misleading marketing, infringement, or counterfeit activities” by entities posing as subconstractors for established brands “will be promptly referred to law enforcement agencies for investigation and action.”- ‘I’m such a sucker’ -Comments on the viral clips, portrayed as coming from internet users rather than the video creators themselves, seem to show that the message resonates.”I’m so annoyed. I paid top price!” said one in a video comment.”I’m such a sucker,” said another.Some leave comments asking for the names of “suppliers of luxury goods” in China from whom they can buy the coveted items on the cheap.Meanwhile, Chinese vendors are also selling counterfeit luxury goods directly on TikTok, with links to their websites. These TikTok live reels garner hundreds of views each.They show row upon row of shelves full of luxury items, all numbered.”DHL delivery. Products identical to those in stores. The only difference is the price,” says one, using an AI-generated voice in French.Internet users are invited to scan a QR code or click on a link to complete their purchase via WhatsApp or PayPal.AFP has found a score of similar live feeds, released simultaneously in English and French, suggesting that the main targets are internet users in Europe and the United States.China is regularly accused of being the world’s top producer of counterfeit goods.Some estimates suggest 70 to 80 percent of all fakes are manufactured there.In European Union states and a number of other countries there are hefty penalties for purchasing counterfeits.In France, that could mean a three-year prison term and a fine of 300,000 euros ($340,600).Customs authorities may also confiscate counterfeit goods and fine the purchaser the equivalent of the items’ true value.The European Union Intellectual Property Office (EUIPO) says counterfeiting costs European industry 16 billion euros a year, with the clothes, cosmetics and toy sectors being the worst affected.