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Stock markets were mostly lower on Thursday as China poured cold water on US President Donald Trump’s comments talking up the prospects of a deal to end their trade war.It follows a rally in markets the previous day as Trump signalled that tariffs on China could be substantially lowered and that United States would have a “fair deal” on trade with Beijing.But China on Thursday said any claims of ongoing trade talks with Washington were “groundless”.Treasury Secretary Scott Bessent also tempered optimism saying that the two countries are “not yet” talking when it comes to lowering tariffs.”The investing world is back to hanging onto every word out of the White House, but with such a confusing and often contradictory stance on tariffs, volatility is all we can really guarantee,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.European equities fell on Thursday, with investors also looking to a series of company results for signs of how tariffs may weigh on the outlook for the year ahead.”Comments about tariffs from business leaders are omnipresent and investors want to know how companies plan to deal with potential cost pressures,” said Russ Mould, investment director at AJ Bell.The dollar weakened as White House uncertainty boosted demand for the Swiss franc, the yen and gold, seen as safe-haven assets.In Asia, Tokyo closed 0.5 percent higher, while Shanghai ended flat and Hong Kong fell almost one percent.Bessent also said that in its talks with Japan on tariffs, Washington had “absolutely no currency targets”, after repeated comments from Trump that he wants a stronger yen.Seoul fell after official data showed South Korea’s economy unexpectedly contracted 0.1 percent in the first three months of 2025.On Wall Street, the broad-based S&P 500 finished 1.7 percent higher on Wednesday. In company news, struggling Japanese auto giant Nissan issued a stark profit warning on Thursday. Meanwhile Nintendo shares gained as much as 5.5 percent after the gaming giant boasted of higher than expected demand in Japan for pre-orders of its Switch 2 game console.  French software company Dassault Systemes dropped around seven percent in Paris after its net profit declined and it cut its 2025 annual operating margin forecast.Luxury group Kering fell around four percent in Paris after reporting a further sales slump at its flagship Gucci brand.Also in Paris, carmaker Renault gained around two percent as it announced plans to further cut costs as US tariffs shake up the global car market while reporting a slight increase in sales volumes.In Frankfurt, German sportswear giant Adidas gained around three percent as its profit almost doubled in the first quarter, beating expectations.- Key figures at 1100 GMT -London – FTSE 100: DOWN 0.1 percent at 8,399.18 pointsParis – CAC 40: DOWN 0.2 percent at 7,464.88Frankfurt – DAX: DOWN 0.3 percent at 21,907.84Tokyo – Nikkei 225: UP 0.5 percent at 35,039.15 (close)Hong Kong – Hang Seng Index: DOWN 0.7 percent 21,909.76 (close)Shanghai – Composite: FLAT at 3,297.29 (close)New York – Dow: UP 1.1 percent at 39,606.57 (close)Euro/dollar: UP at $1.1383 from $1.1317 on WednesdayPound/dollar: UP at $1.3307 from $1.3257Dollar/yen: DOWN at 142.48 from 143.49 yen  Euro/pound: UP at 85.57 from 85.34 pence West Texas Intermediate: UP 1.2 percent at $63.02 per barrelBrent North Sea Crude: UP 1.1 percent at $65.88 per barrelburs-ajb/rl

Asian markets were mixed on Thursday as China poured cold water on US President Donald Trump’s comments talking up the prospects of a deal to end their trade war.Trump said on Wednesday that Washington would have a “fair deal with China” and that there was direct contact “every day”. On Tuesday he had said tariffs would “come down substantially”.But China said on Thursday that there were no negotiations ongoing.”Any claims about the progress of China-US economic and trade negotiations are groundless and have no factual basis,” Commerce Ministry spokesman He Yadong told a news conference.”China urges the United States to correct its wrong practices, show the sincerity needed for talks (and) return to the correct track of equal dialogue and consultation,” He said.On Wednesday Trump’s comments, as well as his insistence that he has “no intention” of firing the head of the US Federal Reserve, Jerome Powell, boosted markets.The broad-based S&P 500 finished 1.7 percent higher on Wednesday. European markets also rose but in early trade on Thursday headed lower, with Frankfurt down over a percent.Trump could also exempt car parts from some tariffs on China alongside those on steel and aluminium in a “destacking”, the Financial Times reported.On Thursday Tokyo pared back earlier gains to close 0.5 percent higher, while Sydney added 0.6 percent and Shanghai ended flat. Taiwan and Hong Kong’s Hang Seng fell almost a percent.Seoul fell after official data showed South Korea’s economy unexpectedly contracted 0.1 percent in the first three months of 2025.”Both US equities and government bonds have staged a relief rally over the past 24 hours, as concerns about Fed independence and the trade war have eased,” said Hubert de Barochez at Capital Economics.”But the fact that the rally was sparked largely by conciliatory remarks from US President Trump — whose rhetoric is notoriously volatile — raises questions about its durability,” de Barochez said.On trade, Washington has imposed additional tariffs of 145 percent on a range of products from China, while Beijing has retaliated with levies of 125 percent on US goods.Treasury Secretary Scott Bessent told reporters on Wednesday that Washington is “not yet” speaking with Beijing on tariffs, calling the high levies not “sustainable”. Bessent also said that in its talks with Japan on tariffs, Washington had “absolutely no currency targets”, after repeated comments from Trump that he wants a stronger yen.Japan’s envoy Ryosei Akazawa met Trump and other senior US officials last week, and local media reported Thursday that he will return for another round on May 1.Nintendo shares gained as much as 5.5 percent after its president said there were “extremely high” pre-orders in Japan for its Switch 2 game console ahead of its global launch on June 5.  – Key figures at 0830 GMT -Tokyo – Nikkei 225: UP 0.5 percent at 35,039.15 (close)Hong Kong – Hang Seng Index: DOWN 0.7 percent 21,909.76 (close)Shanghai – Composite: UP 0.03 percent at 3,297.29 (close)Euro/dollar: UP at $1.1373 from $1.1317 on WednesdayPound/dollar: UP at $1.3297 from $1.3257Dollar/yen: DOWN at 142.69 from 143.49 yen  Euro/pound: UP at 85.53 from 85.34 pence West Texas Intermediate: UP 0.74 percent at $62.73 per barrelBrent North Sea Crude: UP 0.64 percent at $66.54 per barrelNew York – Dow: UP 1.1 percent at 39,606.57 (close)London – FTSE 100: DOWN 0.35 percent at 8,374.17burs-stu/sco

Asian markets were mixed on Thursday after President Donald Trump said he had “no intention” of firing the US central bank head and made conciliatory comments on his trade war with China.Trump’s attacks on the Federal Reserve for not cutting interest rates had raised fears that he would fire its “Mr. Too Late” chief Jerome Powell, in a major blow to its independence.Trump’s rowback on Wednesday boosted Wall Street, as did his comments that US tariffs on China were “very high” and would “come down substantially”.The broad-based S&P 500 finished 1.7 percent higher on Wednesday. European stocks also rallied, with Frankfurt gaining more than three percent.Trump could also exempt car parts from some tariffs on China alongside those on steel and aluminum in a “destacking”, the Financial Times reported.Tokyo rose more than one percent, while Sydney added 0.6 percent and Shanghai 0.3 percent.But Seoul fell after official data showed South Korea’s economy unexpectedly contracted 0.1 percent in the first three months of 2025.Hong Kong and Taipei were also slightly down.”Both US equities and government bonds have staged a relief rally over the past 24 hours, as concerns about Fed independence and the trade war have eased,” said Hubert de Barochez at Capital Economics.”But the fact that the rally was sparked largely by conciliatory remarks from US President Trump — whose rhetoric is notoriously volatile — raises questions about its durability,” de Barochez said.On trade, Washington has imposed additional tariffs of 145 percent on a range of products from China, while Beijing has retaliated with levies of 125 percent on US goods.Treasury Secretary Scott Bessent told reporters on Wednesday that Washington is “not yet” speaking with Beijing on tariffs, calling the high levies not “sustainable”. Bessent also said that in its talks with Japan on tariffs, Washington had “absolutely no currency targets”, after repeated comments from Trump that he wants a stronger yen.Japan’s envoy Ryosei Akazawa met Trump and other senior US officials last week, and local media reported Thursday that he will return for another round on May 1.Nintendo shares gained as much as 5.5 percent after its president said there were “extremely high” pre-orders in Japan for its Switch 2 game console ahead of its global launch on June 5.  – Key figures at 0300 GMT -Tokyo – Nikkei 225: UP 1.9 percent at 34,868.63 (break)Hong Kong – Hang Seng Index: DOWN 0.23 percent 22,022.77Shanghai – Composite: UP 0.26 percent at 3,304.97 Euro/dollar: UP at $1.1351 from  $1.1317 on WednesdayPound/dollar: UP at $1.3281 from $1.3257Dollar/yen: DOWN at 142.78 from 143.49 yen  Euro/pound: UP at 85.47 from 85.34 pence West Texas Intermediate: DOWN 0.05 percent at $62.24 per barrelBrent North Sea Crude: UNCHANGED at $66.12 per barrelNew York – Dow: UP 1.1 percent at 39,606.57 (close)London – FTSE 100: UP 0.9 percent at 8,403.18 (close)burs-stu/tc/tym

Australia will stockpile critical minerals in a new strategic reserve, Prime Minister Anthony Albanese said Thursday, as nations scramble to source rare earths and coveted metals outside China. Mining superpower Australia sits on bulging deposits of lithium, nickel and cobalt — metals used in everything from smartphones to electric vehicles. But most of this boon is sold as raw ore to processing factories in China, which has a chokehold on the global supply of finished critical minerals. Albanese said Australia would start stockpiling these commodities at home, striking deals to sell them to other “key partners”. “Increasingly uncertain times call for a new approach to make sure Australia maximises the strategic value of critical minerals,” he said in a statement.”We need to do more with the natural resources the world needs, and that Australia can provide.”Australia would initially set aside Aus$1.2 billion (US$760 million) to get the reserve up and running. Albanese’s government has previously suggested Australia could use its critical minerals as a bargaining chip in tariff talks with the United States. Australia sits on some of the largest lithium deposits in the world, and is also a leading source of lesser-known rare earth metals such as neodymium.Major manufacturing nations such as the United States, Germany and Japan are eager to obtain these critical minerals from sources other than China. Japan has its own critical minerals stockpile, while the United States has been investing in metals refineries and other processing technology. – Rare earth ransom -“The ability for the government to stockpile is an important safeguard against market pressure, as well as interventions from other nations,” Albanese said in a speech later on Thursday.”It means Australia has the power to sell at the right time to the right partners for the right reasons.”Critical minerals loom as a likely new front in the unfolding trade war between Washington and Beijing. US President Donald Trump last week ordered a probe that could result in new tariffs targeting China.Trump’s order stated that the United States was dependent on foreign sources of critical minerals, putting its military and energy infrastructure at risk.China has shown a willingness to hold rare earths to ransom in the past. At the height of a diplomatic dispute in 2010, China effectively banned the export of rare earths into Japan. The move rattled Japan’s car-making industry, which was heavily reliant on certain rare earth alloys to build magnets used in motors. China controls some 90 percent of the world’s supply of rare earths — a subset of critical minerals — and is fiercely protective of its position. Beijing has banned the export of processing technology that could help rival nations, and has been accused of using state-imposed quotas to control supply. 

South Korea’s economy unexpectedly contracted 0.1 percent in the first three months of this year, the country’s central bank said Thursday, as the Asian export giant reels from months of political chaos and heightened trade tensions. US President Donald Trump’s threatened 25 percent “reciprocal” tariffs on export-dependent South Korea have rattled Asia’s fourth-largest economy, sending Seoul-listed shares tumbling and pushing the currency to its weakest level since 2009. The country is also still emerging from a political crisis triggered by former president Yoon Suk Yeol’s December attempt to suspend civilian rule, which culminated in his impeachment and removal from office this month.”Real gross domestic product (GDP) fell by 0.1 percent compared to the same period last year,” the central bank said, adding that it contracted by 0.2 percent from the previous quarter. “Two developments hit confidence and the economy — fallout from former President Yoon Suk Yeol’s failed martial law attempt and worries about shifts in US trade policies,” said Hyosung Kwon, an economist at Bloomberg Economics. “Looking ahead, we see the economy rebounding in the second quarter of this year, helped by easing political uncertainty at home. But the recovery will likely remain fragile as elevated US tariffs weigh on external demand,” Kwon added.- Dented exports -The country’s economy expanded 1.3 precent in the first quarter of last year but grew less than expected in the fourth quarter, as the fallout from Yoon’s declaration of martial law hit consumer confidence and domestic demand.According to the Korea Customs Service, as of mid-April, the country’s exports had dropped by more than 5 percent compared to the previous year, with declines reported in nine out of the country’s ten major export categories excluding semiconductors. The sharpest fall was in exports to the United States, which plunged by more than 14 percent. The International Monetary Fund this week sharply revised down its growth forecast for South Korea for the year,  cutting it from 2.0 percent to 1.0 percent. “The South Korean economy is facing structural burdens of high inflation and a weak won-dollar exchange rate, and under this dual pressure, a slowdown in growth is becoming increasingly evident,” Kim Dae-jong, a professor at Sejong University, told AFP.Bank of Korea governor Rhee Chang-yong said last week the country’s annual growth rate is now “expected to fall short of the 1.5 percent forecast made in February”.”The tightening of tariff policies, which is much stronger than initially projected, will likely further weigh on growth prospects,” he told reporters in a press conference.He added that “political uncertainty has dragged on longer than expected, delaying the recovery of economic sentiment.” Sluggish domestic demand, along with factors such as large-scale wildfires which tore through swaths of the country’s southeast in late March, had also contributed to the downturn, Rhee said.Addressing parliament, acting president Han Duck-soo underlined “significant” challenges by South Korea.”Unprecedented US-driven tariff policies have created a level of uncertainty that is causing rapid and unpredictable shifts in the global economic landscape,” Han told the National Assembly.US tariffs on steel and automobiles, as well as broader levies imposed by Trump on other goods, are expected to “place considerable strain on Korean industries and businesses,” added Han. 

A year ago Zhang Chundong helped the firm he manages expand into Vietnam, part of a wave of Chinese businesses to choose the booming manufacturing hub since the trade war of US President Donald Trump’s first term.Now the company — a distributor of forklifts made by China’s BYD — is struggling to achieve the fast growth it expected as factory projects stall, and Vietnam waits to see if an enormous 46 percent tariff threatened by Trump this month will materialise.”Some factories that we received orders from are almost ready for operation, but since the tariff news, we got notice that projects and the purchasing of our forklifts are on hold,” said Zhang, manager at Huochacha New Energy Group, whose clients in Vietnam include Chinese electronics company TCL.”We should be in a stage of a rapid growth… (but) due to the tariffs, we are not,” he told AFP.Many Chinese businesses in Vietnam, particularly those exporting directly to the United States, in theory find themselves in a better position than they would be at home, with Beijing already facing levies of up to 145 percent on many products.Hanoi — like much of the rest of the world — has been hit with a blanket 10 percent tariff and has a short window before delayed reciprocal levies come into force in July. There’s still hope that the figure can be negotiated down.But in Vietnam’s northern industrial Bac Ninh province, Chinese businesses that AFP interviewed — most of whom are linked to the export supply chain — said investors were hesitating and anxiety was widespread.Zhang, 39, said he had confidence in the negotiations but explained that three or four of the firm’s projects were on hold.”I’ve talked with a few clients… and the answers at the moment are all the same, we need to keep waiting.” – Investment surge -In Bac Ninh, around 40 kilometres from Hanoi by road, restaurants, massage parlours and convenience stores with Chinese signs jostle for space with Korean shops and eateries.South Korea has long been a huge investor in Vietnam, with electronics giants such as Samsung and LG both in Bac Ninh — but China is fast catching up.Around 10,000 Chinese people lived in the province by the end of 2023, the latest figure available, and expats in the area said the figure had likely surged since then. “In recent years, Vietnam’s economy has been developing, and China and US keep having trade friction, so many companies that were hesitant before came to Vietnam these two years,” said Wang Hongxin, 40, who moved to Vietnam more than a decade ago to work with a Samsung supplier.One of them is Vietnam Kepai, a Chinese firm which makes computer numerical control machines and expanded into Bac Ninh last month, in search of new markets and to escape fierce competition back home.”There are many companies that are successful in China hoping to explore the market in Vietnam. I’ve heard this conversation so many times in Chinese restaurants (here),” said Li Pingwu, the firm’s 33-year-old manager.The nation ranked third among Vietnam’s top investors in 2024, behind only Singapore and South Korea, with a more than three percent jump compared to the previous year. It also led in terms of new investment projects, representing more than a quarter of all newly registered initiatives.- Hours cut -This influx is what appeared to provoke Trump as he announced huge tariffs on Vietnam in early April, with Washington accusing the country of facilitating Chinese exports to the United States and allowing Beijing to get around tariffs.Although a 2024 report by the International Monetary Fund said there was “no clear evidence” of Vietnam’s role in facilitating Chinese exports to the United States, manager Zhang admitted he had seen this happening.”Some of our clients including the ones selling floorboards or moulding machines are doing entrepot trading, involving exports to the US,” he said.Vietnam’s trade ministry has ordered authorities to tighten control over the origin of goods to avoid sanctions by trading partners in the wake of the threatened US tariffs, according to a document seen by AFP on Tuesday.One businessman in Bac Ninh said the surge in investment had once created a worker shortage, but the situation for Vietnamese staff at Chinese companies is now uncertain.Hung, who earns about $270 a month working at a Chinese company producing exterior parts for desktop monitors, said his hours had been cut.”We have stopped getting to work overtime,” said the 30-year-old, who declined to give his full name. “I don’t know how life will be now, as it’s so hard to live here with what I earn.”Wang admitted he was “anxious”.”We originally planned to upgrade some equipment for long-term development, but… because the investment will be quite big, we are a little hesitant now,” he said.

US Treasury Secretary Scott Bessent said Wednesday that Washington has “no currency targets” in its talks with Japan on tariffs, after repeated calls from President Donald Trump for a stronger yen.Japanese media reported meanwhile that a second round of talks in Washington was set for May 1, which will be closely watched as a barometer for efforts by other countries seeking tariff relief.Bessent said Washington is looking at “tariffs, non-tariff trade barriers, currency manipulation and government subsidy of labor and fixed capital investment” in the negotiations with Japan.But he added that there were “absolutely no currency targets.”Japanese Finance Minister Katsunobu Kato said he was ready for “close consultations about exchange rates” with Bessent when they meet Thursday on the sidelines of an IMF gathering in Washington, Japanese media reported.A weak yen makes Japanese exports relatively cheaper, while a strong dollar means that US exports are less competitive.The yen rose significantly since Trump’s tariffs were announced — it was trading at 158 for a dollar in mid-January.The close US ally and world’s number four economy is subject to the same 10 percent baseline tariffs that have been imposed on most countries, plus steeper levies on cars, steel and aluminum. Trump also imposed “reciprocal” tariffs on Japan of 24 percent, but those have been paused for 90 days along with those on other countries except China.Japan’s envoy Ryosei Akazawa met Trump and other senior US officials last week, and Japanese media reported Thursday that he will return for another round on May 1.Japanese broadcaster NHK on Thursday quoted unnamed sources as saying that US negotiators have said Washington cannot make exceptions for Japan.Other media reports have suggested that Tokyo is eyeing concessions such as increasing imports into Japan of US rice and soybeans as well as easing auto safety rules.

South Korean chip giant SK hynix reported record quarterly profits Thursday thanks to soaring global demand for artificial intelligence, highlighting the firm’s ability to weather mounting tariff threats.The world’s second-largest memory chip maker dominates the market for high-bandwidth memory (HBM) semiconductors and is a key supplier for US titan Nvidia.SK hynix said it recorded an operating profit of 7.44 trillion won ($5.19 billion) — a nearly 158 percent year-on-year increase — on revenues of 17.64 trillion won from January–March. Both figures marked the company’s second-highest quarterly results on record, following last quarter’s performance.The news comes after Taiwanese chip giant TSMC last week announced a surge in net profit for the first quarter and forecast robust demand for artificial intelligence technology, despite the spectre of US tariffs on the critical sector.Net income also quadrupled compared to the previous year to 8.11 trillion won ($5.67 billion), with the firm saying the “memory market ramped up faster than expected due to competition to develop AI systems and inventory accumulation demand”.The company added that its annual HBM sales for this year are expected to double compared to last year.Despite the news, SK hynix’s shares fell more than one percent in Seoul morning trade.- Less affected -South Korea is a major exporter to the United States and its powerhouse semiconductor and auto industries would suffer greatly under President Donald Trump’s looming 25 percent tariffs.The country is also home to the world’s largest memory chip maker, Samsung.Experts say SK hynix’s resilience is because of the company’s growth in the DRAM market.SK hynix recently took the lead in DRAM revenues with a 36 percent market share, according to specialist research firm Counterpoint, surpassing Samsung for the first time and marking the first change in the top spot in over four decades.”Right now the world is focused on the impact of tariffs, so the question is: what’s going to happen with HBM DRAM?” said Counterpoint research director MS Hwang. “At least in the short term, the segment is less likely to be affected by any trade shock as AI demand should remain strong. More significantly, the end product for HBM is AI servers, which — by definition — can be borderless.”During a conference call, SK hynix noted that “uncertainty has grown around demand for semiconductors”, but sales plans for key clients for the company this year “remain unchanged”.”Global customers are, overall, maintaining their previously discussed memory demand levels with us,” said an SK hynix official. “Additionally, some clients are pulling forward demand by requesting short-term supply advances,” the company said. The company also noted that while roughly three-fifths of its sales are to US-based customers, tariffs apply only to products shipped directly to the United States. “Even when our clients are headquartered in the US, memory products are often shipped to locations outside the US, meaning the actual proportion of direct exports to the US is not particularly high,” an SK hynix official said.

Nintendo shares surged Thursday after the gaming giant boasted of higher than expected demand in Japan for pre-orders of its hotly anticipated Switch 2 console.The successor to the Switch — the third best-selling console ever behind Sony’s PlayStation 2 and the Nintendo DS — is set to hit shelves worldwide on June 5.And the stakes are high: although Nintendo is diversifying into theme parks and hit movies, analysts say around 90 percent of its revenue comes from the Switch business.An X post attributed to company president Shuntaro Furukawa published Wednesday said there had been 2.2 million pre-order applications for the new console in Japan.This is an “extremely high” number which “greatly exceeds our initial expectations”, the post said.”It also significantly exceeds the quantity of Switch 2 consoles” that can be delivered on the release date.”Therefore, it is expected that a considerable number of customers will not win the lottery when the winners are announced” on Thursday, for which “we deeply apologise”.Shares in the Kyoto-based company gained as much as 5.5 percent on Thursday following the bullish announcement.Nintendo in early April revealed details about the Switch 2, which like its predecessor is a hybrid console that can be used on the go or connected to a TV screen.However the price has raised eyebrows at over a third more than the original Switch in major markets including the United States, where it will cost $449.99.A Japanese-only version for domestic consumers will be cheaper at 49,980 yen ($350).”Uncertainty around reciprocal tariffs, global trade and higher component costs” mean a price drop is unlikely within the next five years, industry research firm Niko Partners said earlier this month.Nintendo delayed pre-orders for the Switch 2 in the United States by several weeks as it assessed the fallout from US President Donald Trump’s trade levies.

US President Donald Trump on Wednesday played up prospects of a “fair deal” on trade with China, but his top officials offered few details of how Washington might de-escalate its damaging tariff war with Beijing.Trump told reporters his country would have a “fair deal with China,” adding that “everything’s active” when asked if Washington was talking to Beijing.But how soon the tariffs can be lowered “depends on them,” Trump said, referring to Beijing, even as he maintained that he gets along “very well” with Chinese President Xi Jinping and hopes they can reach an agreement.Trade tensions between the world’s two biggest economies have soared as Trump ramped up levies on imports from China this year, imposing an additional 145 percent tariff on many products over practices Washington has deemed unfair, and other issues.Beijing in turn has countered with new 125 percent tariffs on US goods.Despite signals that Washington is looking towards a fair agreement, the state of discussions remains murky.Asked if there is direct US contact with China on trade, Trump said: “Every day.”But earlier Wednesday, US Treasury Secretary Scott Bessent told reporters that the two countries are “not yet” talking when it comes to lowering tariffs.”I think both sides are waiting to speak to the other,” he said at an event on the sidelines of the International Monetary Fund and World Bank’s spring meetings in Washington.He added that there is no unilateral offer from Trump to slash duties on Chinese goods.- ‘An embargo’ -Bessent said the staggeringly high tariffs both countries have imposed on each other’s goods have to come down before negotiations can occur.”I don’t think either side believes that the current tariff levels are sustainable, so I would not be surprised if they went down in a mutual way,” he added on the sidelines of an Institute of International Finance forum.”This is the equivalent of an embargo, and a break between the two countries in trade does not suit anyone’s interest,” Bessent said, stressing that “de-escalation by both sides is possible.”But he had no timeframe on how soon bilateral talks could take place.”It’s both a blessing and a curse that the strongest relationship is at the very top,” Bessent said, referring to Trump’s ties with Chinese counterpart Xi. But with “any de-escalation, the talks would not begin at the very top.”Joseph Grieco, professor of political science at Duke University, told AFP that Trump may continue to chase China for a deal “to keep the financial markets off his back.””I worry Trump will eventually offer President Xi a favorable deal, one that doesn’t address the serious economic problems the US actually has with China,” he said.While Trump has swiftly rolled out sharp tariffs on different countries and sectors, he has also been quick to introduce certain exemptions — most recently some temporary reprieve for tech products like smartphones and chipmaking tools.And he could widen the carveouts, the Financial Times reported Wednesday, saying Trump could exempt car parts from some tariffs on Chinese imports — alongside those on steel and aluminum.On Wednesday afternoon, Trump said he was not considering changes to US auto tariffs but noted that levies on Canada could rise in terms of cars.Separately, Bessent said he did not have a stance on whether the president had the authority to fire Federal Reserve Chair Jerome Powell if he wanted to.He suggested Trump’s previous comment that the “termination” of Powell could not come fast enough might also refer to the end of the Fed chief’s term.Earlier Wednesday, Bessent said in a speech that Beijing’s export-reliant economic model is “unsustainable” and “not only harming China but the entire world.”He stressed US concerns around trade imbalances that the Trump administration says it hopes to address through sweeping tariffs.But Bessent maintained that “America first does not mean America alone.”He insisted the administration’s moves are broadly a call for deeper collaboration and mutual respect among trading partners, while taking aim at policy choices by other countries that he said have hollowed out US manufacturing and put its security at risk.