Trump Tariffs Highlights: Trump says US 'talking' to China on tariffs, adding 'Beijing have reached out a number of times'

President Donald Trump said Thursday he is in “no rush” to reach any trade deals because he views tariffs as making the United States wealthy. But he suggested while meeting with Italian Premier Giorgia Meloni that it would be easy to find an agreement with the European Union and others.

Trump played down the likelihood of an accelerated timeline to wrap up deals, saying other countries “want to make deals more than I do.”

“We're in no rush,” said Trump, hinting he has leverage because other countries want access to U.S. consumers.

Even though Trump has a warm relationship with Meloni, she was unable in their meeting to change his mind on tariffs.

“No, tariffs are making us rich. We were losing a lot of money under Biden,” Trump said of his predecessor, Democrat Joe Biden. “And now that whole tide is turned.”

Trump is convinced that his devotion to tariffs will yield unprecedented wealth for his country even as the stock market has dropped, interest on U.S. debt has risen and CEOs are warning of price increases and job losses in what increasingly looks like a threat to the existing structure of the world economy.

A bond market panic was enough for Trump to partially pull back on his tariffs, causing him to pause his 20% import taxes on the EU for 90 days and charge a baseline 10% instead. Meloni's visit showed the challenge faced even by leaders who enjoy a rapport with Trump.

President Donald Trump said Thursday that the United States was in talks with China to make a deal on tariffs, as the world's largest economies slug it out in a bitter trade war.
"Yeah, we're talking to China," Trump told reporters in the Oval Office. "I would say they have reached out a number of times."

“No, tariffs are making us rich. We were losing a lot of money under Biden,” the U.S. president said. “And now that whole tide is turned.”

Trump took time to lavish praise on the Italian prime minister, however.

“She’s doing a great job, certainly one of our great allies,” he said. “She’s a fantastic person and doing a great job and our relationship is great.”

Dozens of delivery drivers in yellow and blue uniforms crowded around a snack street in downtown Shanghai, on standby for their next order. The work was temporary, many said, a gig to help pay off a debt or fill the gap before a better-paying job.

For China's workers, financial security is further out of reach than ever. They are stuck in China's deflation loop. Stubbornly low prices on everything from eggs to a hot delivered meal have cut into the profits that businesses make, gnawing at the money workers earn. Everyone has become tighter with money, pushing down prices even more.

A bruising trade fight with the United States is the last thing anyone wanted, especially policymakers who have floundered to stop prices falling. It threatens to make things harder than they already were for China's hundreds of millions of workers.

Cao Zhi, 27, left his low-paying job selling car insurance to join the food delivery platform Ele.me four years ago in Shanghai. He said he had to work at least one extra hour each day to take home the same amount of pay that he was making when he started.

He said many of his friends had experienced similar earnings erosion.

US President Donald Trump insisted Thursday that he could force out the independent head of the Federal Reserve, Jerome Powell, once again attacking the central bank chief for his policy on interest rates.

"He'll leave if I ask him to, he'll be out of there," Trump told reporters. "I'm not happy with him. I let him know it and if I want him out, he'll be out of there real fast, believe me."

US President Donald Trump and Italian Prime Minister Giorgia Meloni voiced confidence on Thursday that a trade agreement between the EU and the US could be achieved, despite tensions stirred by Trump’s sweeping tariffs.

Speaking ahead of a working lunch at the White House, Trump declared there would “100%” be a deal, while Meloni echoed his optimism, saying she was “sure” an agreement could be reached. She also emphasized that the US remains a “reliable partner” in spite of its tariff policies.

Meloni further announced plans to invite Trump for an official visit to Italy, with hopes of arranging a broader meeting involving other European leaders during his trip.

Donald Trump said Thursday he’s in “no rush” to finalize trade deals, citing the revenue generated by his tariffs as a key reason for holding off. While meeting with Italian Prime Minister Giorgia Meloni, Trump expressed confidence that reaching an agreement with the European Union would be relatively easy.

Although his administration has hinted at the possibility of securing up to 90 trade deals during the 90-day pause in tariffs, Trump tempered expectations, saying that any agreements would come “at a certain point,” downplaying the urgency of a fast-tracked timeline.

Meanwhile, amid rising tensions over a possible transatlantic trade war, the EU is pushing to finalize a long-delayed trade agreement with the Mercosur bloc—Argentina, Brazil, Paraguay, and Uruguay—as it seeks to diversify away from its strained €1.6 trillion trading relationship with the US.

Incoming German Chancellor Friedrich Merz has expressed urgency in securing new trade partners and suggested that French President Emmanuel Macron may be softening his stance on the Mercosur deal, despite strong resistance from French farmers. The agreement, 25 years in the making, was finalized by the European Commission last December but still requires approval from EU member states and the European Parliament.

This comes Trump claimed that China was willing to have a meeting with the US.

"Had a very productive call with the President of Mexico yesterday. Likewise, I met with the highest level Japanese Trade Representatives. It was a very productive meeting. Every Nation, including China, wants to meet! Today, Italy!" he had said.

Swiss watch exports to the US surged nearly 14% in March, a spike likely driven by retailers rushing to stock up ahead of impending US tariffs announced by President Donald Trump. The rise marked a sharp rebound from a 6.7% decline the previous month, according to the Swiss watchmakers' federation.

Analysts have cautioned that Switzerland’s renowned watch industry could be among the most affected by the 31% import tariffs introduced in early April—though those have since been temporarily suspended for 90 days. However, a baseline 10% tariff on all US imports did take effect on April 5.

Overall, Swiss watch exports rose 1.5% in March, reaching 2.38 billion francs ($2.9 billion), with the US market driving much of the growth.

Wall Street showed a mixed performance in premarket trading Thursday, wrapping up a holiday-shortened week that opened on a calmer note compared to recent market volatility. S&P 500 futures edged up 0.3%, and Nasdaq futures gained 0.6%, while Dow Jones futures dropped sharply by 1.6%.

A major drag on the Dow came from UnitedHealth Group, whose shares plunged nearly 20% after the healthcare giant missed earnings and revenue expectations and cut its 2025 outlook. The company cited unexpectedly high healthcare utilization among its Medicare Advantage members as a key factor behind the miss.

Meanwhile, Eli Lilly shares surged 11% premarket after the pharmaceutical company announced promising Phase 3 trial results for its once-daily pill targeting weight loss and diabetes, giving a boost to investor sentiment in the healthcare sector.

China said on Thursday that it is engaged in "working-level communication" with the United States to address the ongoing stalemate in their escalating tariff dispute. However, it emphasized that the responsibility to resolve the issue lies with the one who initiated it. Responding to US President Donald Trump’s comment that “the ball is in China’s court” and that Beijing needs to strike a deal, Chinese commerce ministry spokesperson He Yongqian cited a proverb, saying, “The person who tied the bell must be the one to untie it,” implying the US should take the lead in resolving the impasse.

Despite the drag on global growth caused by US President Donald Trump's tariff policies, the world economy is expected to steer clear of a recession, International Monetary Fund chief Kristalina Georgieva said Thursday. Speaking to reporters in Washington, Georgieva acknowledged that trade tensions would "inevitably incur costs," but noted that while the IMF anticipates significant downward revisions to growth forecasts, a full-blown recession is not currently expected.

Amid growing concerns that US President Donald Trump's unpredictable tariff policies could hamper eurozone growth, the European Central Bank cut interest rates once again on Thursday. In its sixth consecutive rate reduction, ECB policymakers lowered the benchmark deposit rate by 0.25 percentage points, bringing it down to 2.25 percent.

Turkey’s central bank ended its three-month streak of interest rate cuts on Thursday, sharply raising its key rate by 3.5 percentage points in response to persistent inflation, financial volatility sparked by the arrest of Istanbul’s mayor, and the broader impact of global tariffs. The Monetary Policy Committee increased the one-week repo rate from 42.5% to 46%, while also adjusting the overnight lending and borrowing rates to 49% and 44.5%, respectively.

In a statement, the committee affirmed that its tight monetary policy would remain in place until inflation shows a sustained decline and price stability is secured. While noting a downward trend in inflation during March, officials cautioned that core goods inflation may edge up in April due to market fluctuations, with services inflation expected to hold steady.

The effects of the tariffs imposed by US President Donald Trump on inflation in the eurozone will take time to fully emerge, European Central Bank President Christine Lagarde said during a press conference on Thursday. "The net impact on inflation will only become clear, or clearer... over the course of time," she said. "There are diverging views... we have of a lot of uncertainties still today."

Donald Trump held meetings with trade representatives of Japan and said that "every nation including China, wants to meet!"

"Had a very productive call with the President of Mexico yesterday. Likewise, I met with the highest level Japanese Trade Representatives. It was a very productive meeting. Every Nation, including China, wants to meet! Today, Italy!" he said in a post on Truth Social.

"The ECB is expected to cut interest rates for the 7th time, and yet, 'Too Late' Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete “mess!” Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS. Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now. Powell’s termination cannot come fast enough!" he said.

Malaysia and China have signed a sweeping set of agreements to boost bilateral cooperation during Chinese President Xi Jinping’s recent state visit, marking a deepening of ties amid ongoing tensions between Beijing and Washington. Xi’s visit to Malaysia—his second stop on a Southeast Asian tour that also included Vietnam and Cambodia—was highlighted by ambitions to usher in a “new golden era” in Chinese-Malaysian relations, following last year’s 50th anniversary of diplomatic ties.

Welcomed by King Sultan Ibrahim, Xi’s three-day visit resulted in the signing of 31 memoranda of understanding, which Malaysian Communications Minister Fahmi Fadzil hailed as "among the most significant achievements in our history." The agreements span multiple sectors, including artificial intelligence, signaling a push toward joint modernization.

In a joint statement, both countries committed to building a high-level strategic partnership and a shared future, aiming to drive regional and global prosperity and stability through closer economic and technological collaboration.

Italian Prime Minister Giorgia Meloni is set to meet with US President Donald Trump in Washington on Thursday, aiming to leverage their personal rapport to secure a more favorable trade deal for the European Union. As the first European leader to meet with Trump since his trade standoff with the EU began, Meloni is hoping a charm offensive can help ease tensions and reshape tariff terms.

Despite the strain caused by Trump’s aggressive tariff policies — including a controversial 20% duty on EU exports that was later temporarily suspended — Meloni has worked to keep communication channels open. Though she previously criticized the tariffs as "wrong," the far-right leader has remained aligned with Trump on several conservative issues, with Trump praising her as a "fantastic leader."

The spectre of a transatlantic trade war is also fuelling hopes of a silver lining in Europe: that a commerce deal with four South American countries could get a final green light despite longstanding French opposition.

Forced to come to terms with the growing cracks in its biggest trading relationship, worth 1.6 trillion euros ($1.8 trillion), the EU believes it's time to chase opportunities elsewhere.

"The global balance is shifting, and we Europeans need (new trading partners) very quickly," incoming German chancellor Friedrich Merz said last weekend.

Such is Merz's determination, he suggested French President Emmanuel Macron could be swayed into a U-turn to back the EU accord with Mercosur bloc members Argentina, Brazil, Paraguay and Uruguay -- despite strident opposition from France's farmers.

Worries about economic growth fuelled by US President Donald Trump's tariff onslaught will likely push the European Central Bank to cut interest rates on Thursday for a seventh straight time, a move that should make credit more affordable for business and consumers and promote economic activity. At the bank's last meeting on March 6, ECB President Christine Lagarde had raised the possibility of an upcoming "pause" in the bank's series of rate cuts. But that option was practically eliminated on April 2, when Trump shocked global markets with proposals for unexpectedly high new tariffs, or import taxes, of 10% to 49% on global trading partners.

Analysts say Thursday's meeting of the bank's rate-setting council in Frankfurt should see a quarter-point cut in the bank's benchmark rate to 2.25%. The bank has been steadily cutting rates after raising them sharply to combat an outbreak of inflation from 2022 to 2023.

Now that inflation has fallen, growth worries have taken centre stage. The economy in the 20 countries that use the euro grew a modest 0.2% in the last three months of 2024. Inflation was 2.2% in March, close to the bank's target of 2%.

Worries over economic growth—intensified by US President Donald Trump's aggressive tariff threats—are expected to prompt the European Central Bank (ECB) to cut interest rates for the seventh time in a row. The anticipated quarter-point cut would lower the ECB’s benchmark rate to 2.25%, making borrowing cheaper and potentially boosting spending and investment across the eurozone.

Although ECB President Christine Lagarde had previously hinted at a possible pause in rate cuts, Trump’s surprise tariff announcements on April 2—ranging from 10% to 49%—shifted the focus back to supporting growth. While inflation has eased to 2.2% in March (near the ECB’s 2% target), economic growth remains weak, with the eurozone posting only 0.2% growth in the final quarter of 2024.

The tariffs, temporarily suspended for 90 days, have left businesses in limbo, unsure of future costs. Economists warn that prolonged uncertainty and additional tariffs—such as a 25% levy on auto imports—could lead to a deeper slowdown, especially impacting Europe’s crucial automobile industry.

Taiwanese semiconductor giant TSMC said on Thursday it has not observed any shift in customer behaviour following the recent round of US tariffs announced by US President Donald Trump.

“We have not seen any change in our customer behaviour so far,” said TSMC chairman and CEO C.C. Wei during an earnings call.

The company maintained its full-year revenue growth forecast despite global concerns over the potential impact of tariffs on supply chains and international trade. Trump’s newly imposed import duties have sparked tension among trade partners, but TSMC appears unaffected for now.

TSMC is the world’s largest contract chipmaker and a key supplier to tech giants including Apple and Nvidia.

French luxury house Hermès announced it will increase prices in the United States from May 1 to counter the effects of new 10 percent import tariffs introduced by President Donald Trump.

The company’s finance chief, Eric Halgouet, said the move is aimed at “fully offsetting” the impact of the new duties. “It will be a complementary price increase that we are currently finalising, but which will allow us to neutralise this impact,” he said during a quarterly earnings briefing.

Hermès—renowned for its Birkin bags, silk scarves and signature ‘H’ belts—already raised prices globally by 6 to 7 percent earlier this year. The additional increase will specifically target the US market.

The announcement comes as Hermès surpassed Louis Vuitton parent company LVMH to become the world’s most valuable luxury brand, following a dip in LVMH’s share price after disappointing earnings.

In the first quarter of 2025, Hermès recorded global sales of €4.1 billion, an 8.5 percent year-on-year increase. Sales in the Americas grew by 13.3 percent to €695 million, with strong performance in the US, Canada, Mexico, and Brazil. However, US sales were briefly disrupted due to wildfires in Los Angeles—which shut down two stores—and snowstorms in other states.

While Trump’s new tariffs took effect this month, higher duties on other imports, including a 20 percent levy on goods from the European Union, have been postponed for now.

The government is still assessing the impact of US tariffs on the country's chemicals and petrochemicals industry, a senior official said on Thursday. "We are still studying. We are in touch with the industry and trying to assess how it will impact our industry," Chemicals and Petrochemicals Secretary Nivedita Shukla Verma told PTI on the sidelines of a brainstorming session .

US President Donald Trump on April 9 reduced a planned 26 per cent reciprocal tariff to 10 per cent, just one week after announcing the higher rate on April 2.

The government will determine measures after discussions with industry players, Verma added.

According to industry data, chemicals constitute about 18 per cent of India's total exports to the US, with FY24 exports valued at around USD 5.7 billion.

India Ratings and Research estimates the tariff hike could reduce chemical exports by USD 2-7 billion in FY26.

Industry experts said the tariff increase substantially raises costs for Indian chemical exports to the US, likely reducing demand for speciality chemicals and intermediates.

Indian petrochemical exports to the US, valued at approximately USD 4 billion in 2024, may see reduced demand, though some petroleum oil sub-segments might be exempt, softening the impact.

South Korea's central bank chief said Thursday that annual growth is expected to fall short of a recent forecast due to sweeping US tariffs and the fallout from the ex-president's martial law declaration.

US President Donald Trump's threatened 25 percent "reciprocal" tariffs on the 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 has also seen months of political chaos, triggered by former president Yoon Suk Yeol's December attempt to suspend civilian rule, which culminated in his removal from office and new elections announced for June 3.

"This year's annual growth rate is now expected to fall short of the 1.5 percent forecast made in February," said Bank of Korea (BOK) Governor Rhee Chang-yong.

"The tightening of tariff policies, which is much stronger than initially projected, will likely further weigh on growth prospects," Rhee told reporters in a press conference.

He added that "political uncertainty has dragged on longer than expected, delaying the recovery of economic sentiment."

Indian shrimp exporters are keeping their fingers crossed as the US is set to begin its review of anti-dumping and countervailing duties on shrimp next month, and are seeking government intervention to help secure relief amid stiff global competition, industry experts say. The exporters said that the formula of the US to calculate these duties is incorrect, and the Indian government should take up the issues with them bilaterally, as domestic traders are facing tough competition from Ecuador and Vietnam in the American market.

"The US authorities consider India's RoDTEP and duty drawback schemes as incentive schemes, which is not the case. Both are WTO-compliant duty refund schemes only," Kolkata-based seafood exporter and MD of Megaa Moda Yogesh Gupta said.

He added that the US uses a 'zeroing' method to impose anti-dumping duty on shrimp, which is not correct and needs to be re-looked as it distorts the calculation of the margin of dumping.

He said that exporters are concerned and the government should come forward to support them by re-introducing the Transport and Marketing Assistance (TMA) scheme.

Chinese leader Xi Jinping told Malaysia's leader Wednesday that China will be a collaborative partner and stand with its Southeast Asian neighbors in the wake of global economic shocks.
“In the face of shocks to global order and economic globalization, China and Malaysia will stand with countries in the region to combat the undercurrents of geopolitical ... confrontation, as well as the counter-currents of unilateralism and protectionism,” Xi, who was on a state visit to Malaysia as part of his Southeast Asia tour, said in remarks at a dinner with Malaysian Prime Minister Anwar Ibrahim.

“Together we will safeguard the bright prospects of our Asian family," he added.

Xi is visiting Vietnam, Malaysia and Cambodia this week, days after US President Donald Trump’s tariff announcements disrupted the global economy, and he has used the trip to promote Beijing as a source of stability in the region. Although the trip was likely planned before the tariffs uncertainty, it was a chance for Beijing to shore up its own relationships in the region and look for ways to mitigate the 145% tariffs that Trump has kept on China, even as he paused tariffs for other countries.

European Central Bank policymakers look increasingly likely to cut interest rates again on Thursday, with US President Donald Trump's stop-start tariff announcements sowing concern in the eurozone.
The uncertainty around Trump's next move, and the negative impact it could have on growth within the single currency bloc, has intensified calls for the ECB to ease borrowing costs further.

Worries over rising prices have faded into the background, as once sky-high inflation rates have drifted back down towards the ECB's two-percent target.

The central bank has made six quarter-point cuts since June last year as inflation has fallen, bringing its benchmark deposit rate down to 2.5 percent from four percent.

After such a long cutting streak, the central bank "seemed set for a pause" after its last meeting in March, ING bank analyst Carsten Brzeski said.

But the picture has changed significantly since Trump's announcement of a new round of swingeing tariffs, which he referred to as "Liberation Day".

Trump imposed 10 percent tariffs on all imports into the United States.

Asian shares mostly rose Thursday, despite the continued fretting over President Donald Trump’s trade war, with all eyes on negotiations that just began between the administration and Japan.
Japan's benchmark Nikkei 225 gained 0.7% to 34,142.86 in morning trading.

Honda stock price jumped 1.7% after the Japanese automaker said it plans to move its production of the five-door Civic hybrid electric vehicles for the US market from Japan to the company's plant in Indiana.

Honda Motor Co. didn't say the move was in response to Trump's tariff policies but stressed it moves production to where there is demand. Production of the US-bound five-door Civic HEV began at the Yorii plant outside Tokyo in February. So far 3,000 vehicles have been produced there for the US market.

Trump joined Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick in the talks with the Japanese delegation in Washington. “Hopefully something can be worked out which is good (GREAT!) for Japan and the USA!” Trump wrote in a social media post ahead of the meeting.

Australia's S&P/ASX 200 gained 0.3% to 7,781.00. South Korea's Kospi edged up 0.5% to 2,459.46. Hong Kong's Hang Seng added 0.5% to 21,165.70, while the Shanghai Composite slipped 0.2% to 3,270.47.

US stocks fell Wednesday after Nvidia warned new restrictions on exports to China will chisel billions of dollars off its results. The S&P 500 sank 2.2% after falling as much as 3.3% earlier. Such an amount would have vied for one of its worst losses in years before the historic, chaotic swings that have upended Wall Street in recent weeks.

The Dow Jones Industrial Average dropped 699 points, or 1.7%, and the Nasdaq composite sank a market-leading 3.1%.

China-founded e-commerce sites Temu and Shein say they plan to raise prices for US customers starting next week, a ripple effect from President Donald Trump's attempts to correct the trade imbalance between the world's two largest economies by imposing a sky-high tariff on goods shipped from China.

Temu, which is owned by the Chinese e-commerce company PDD Holdings, and Shein, which is now based in Singapore, said in separate but nearly identical notices that their operating expenses have gone up “due to recent changes in global trade rules and tariffs.”

Both companies said they would be making “price adjustments” starting April 25, although neither provided details about the size of the increases. It was unclear why the two rivals posted almost identical statements on their shopping sites.

California is suing the federal government over Donald Trump's on-again-off-again tariffs, the governor and attorney general said Wednesday, claiming the American president does not have the right to impose them.

The move marks the strongest pushback yet against a tariff roll-out that has sent global stock markets into meltdown, and left businesses across the US fretting about uncertainty.

"It's the worst own-goal in the history of this country," California Governor Gavin Newsom said. "One of the most self-destructive things that we've experienced in modern American history."

With 40 million people and a large, outward-facing economy that accounts for 14 percent of US GDP, California looks set to bear the brunt of the economic damage forecasters expect from recent gyrations.

Newsom's office says California -- which would be the world's fifth-largest economy if it were an independent country -- could lose billions of dollars in revenue if Trump's tariff policies shrink international trade.

Japan on Wednesday failed to secure any immediate relief from US tariffs, with Prime Minister Shigeru Ishiba saying after his envoy held talks in Washington that future negotiations "won't be easy".

The talks between Ryosei Akazawa and President Donald Trump and other senior US officials were closely watched as a barometer for Washington's negotiations with other countries reeling from US tariffs.

"Of course, the discussions going forward won't be easy, but President Trump has expressed his desire to give the negotiations with Japan the highest priority," Ishiba said in Tokyo.

"We recognise that this round of talks has created a foundation for the next steps, and we appreciate that," Ishiba said, calling Akazawa's discussions in Washington "frank and constructive".

"Of course there is a gap between Japan and the US," he said.

Amid the ongoing tariff standoff between US and China, Beijing on Thursday said that if Wahington continues to play the "tariff numbers game", China will pay no attention to it, news agency Reuters reported.

The comment from the China's foreign ministry came in response to the White House stating that China faces tariffs of up to 245% due to its retaliatory action.

Japan's prime minister said Thursday after his tariffs envoy held talks in Washington that future negotiations "won't be easy".

"Of course, the discussions going forward won't be easy, but President Trump has expressed his desire to give the negotiations with Japan the highest priority. We recognise that this round of talks has created a foundation for the next steps, and we appreciate that," Shigeru Ishiba said in Tokyo.

Tamika Johnson, a 44-year-old in Chicago, posted videos to TikTok this month about her orders from Shein, the Chinese e-commerce giant. She was nervous about potential delivery delays in the face of upcoming tariffs.

Her 213,000 followers chimed in as she shared status updates on her purchases of clothing and suitcases, detailing their own plans for last-minute orders and sharing concerns about their shipments.

"People are very worried," Johnson, who posts to TikTok under the handle @TammyTheBlackPrepper, said in an interview. "I'm trying to stock up on clothes now and the things that I need."

Johnson is one of many American consumers who have been posting anxiously to TikTok and Reddit about a coming Trump administration-induced change for the Chinese e-commerce companies Shein and Temu, which sell inexpensive items like $8 dresses and $14 wagons. Starting May 2, the Trump administration is poised to end a trade loophole that enabled the delivery of ultra low-cost goods from Chinese factories straight to Americans' doorsteps without being subject to duties. That will add steep new fees to packages from Shein and Temu.

At least some sellers on TikTok Shop, the popular app's growing marketplace, and AliExpress, another Chinese e-commerce site, will also take a hit.

California Gov. Gavin Newsom sued the Trump administration on Wednesday, challenging the president's authority to impose sweeping tariffs that have set off a global trade war.
The lawsuit argues that President Donald Trump's use of the International Emergency Economic Powers Act to impose tariffs on Mexico, Canada and China or a 10% tariff on all imports is unlawful. The act enables a president to freeze and block transactions in response to foreign threats but doesn't allow the president to adopt tariffs, the suit argues.

The lawsuit, which was filed in the U.S. District Court for the Northern District of California, also argues that enacting such tariffs requires approval from Congress.

Trump has offered many justifications for increasing tariffs, including that they are designed to spur U.S. manufacturing and stop the flow of illicit fentanyl into the country. California's move follows rapidly changing tariff plans by the Trump administration.

A White House official slammed the lawsuit and defended the tariffs plan.

California's governor and attorney general sued President Donald Trump on Wednesday to try to stop his flurry of tariffs, accusing the president of taking unlawful action to escalate a global trade war that has caused "immediate and irreparable harm" to the state's economy.

The lawsuit is the largest legal challenge yet to Trump's trade policies. It was filed Wednesday in federal court in California by Gov. Gavin Newsom and state Attorney General Rob Bonta, both Democrats.

California is the largest importer and second-largest exporter among the states, and its economy is bigger than those of all but four countries. Mexico, Canada and China are the state's top three trading partners, and its massive agricultural sector exports products around the world.

Trump's tariffs are upending global trade. He imposed a 10% tariff on nearly all imports from most of the world, and his escalating tariffs with China have reached 145%.

"California, as a leader in global trade, bears an inordinate share of these costs," the lawsuit said.

Global trade is expected to plummet this year in the wake of President Donald Trump's tariff offensive, fuelling uncertainty that threatens "severe negative consequences" for the world, the World Trade Organization warned Wednesday.

Since returning to office, Trump has imposed a 10 percent tariff on imports of goods from around the world along with 25 percent levies on steel, aluminium and cars.

While Trump made a U-turn on steeper tariffs for dozens of countries, he has escalated a trade war with China, slapping 145 percent levies on Chinese goods while Beijing retaliated with a 125 percent duty on US products.

"I'm very concerned," WTO chief Ngozi Okonjo-Iweala told reporters, adding that the organisation expected to see trade volumes between the United States and China crumble by a whopping 81 percent.

"The enduring uncertainty threatens to act as a brake on global growth, with severe negative consequences for the world, the most vulnerable economies in particular," she warned in a statement.

The Bank of Canada on Wednesday held its key lending rate at 2.75 percent, pausing a stream of recent cuts due to shifting US trade policy and tariffs.

"The major shift in direction of US trade policy and the unpredictability of tariffs have increased uncertainty, diminished prospects for economic growth, and raised inflation expectations," the central bank said in a statement.

Its rate pause followed seven consecutive rate cuts since last summer that have considerably lowered borrowing costs.

The nation entered 2025 on a solid footing, after ending the previous year with strong growth and inflation easing toward the bank's 2.0 percent target.

But US President Donald Trump's announcements of tariffs, erratic backtracks and threats of escalation have rocked the global economy.

Canada avoided the latest batch of tariffs unveiled on April 2, but was hit with other levies on goods that do not comply with a North American free trade pact, as well as on steel and aluminum, and some automobiles.

Trump has also threatened tariffs on lumber, semiconductors and pharmaceutical products.

"A lot has happened since our March decision five weeks ago. But the future is no clearer," Bank of Canada Governor Tiff Macklem said.

China has expressed its willingness to resume trade negotiations with the United States, provided that certain key preconditions are fulfilled. Among the primary demands is a call for greater diplomatic respect, a consistent US trade stance, attention to its concerns on sanctions and Taiwan, and the appointment of a lead negotiator with Trump's full backing, Bloomberg reported citing a Chinese government source.

US retail sales jumped in March, according to government data published Wednesday, powered by the auto sector as consumers rushed to buy goods before new tariffs kicked in.

Overall sales grew 1.4 percent last month to $734.9 billion, the commerce department said in a statement. That was slightly above market expectations of a 1.3-percent rise, according to Briefing.com.

The data covered the period immediately before US President Donald Trump's steep new levies on trading partners came into effect, unleashing volatility in the financial markets.

Days later, Trump abruptly and temporarily rolled back the import tariffs to 10 percent for many countries, while sharply hiking them for China, the world's second-largest economy.

Tariffs were likely top of mind for consumers, whose spending at motor vehicles and parts dealers rose 5.3 percent from a month earlier.

Spending at restaurants and bars increased by 1.8 percent from February.

"Consumers have to have willingness to buy, and the ability," Allianz Trade North America senior economist Dan North told AFP.

"The ability is provided by disposable income, and that's slowing down as well. So the outlook after this month isn't particularly encouraging," he said.

Exporters at China’s largest trade fair spoke on Wednesday of stalled shipments and lower sales forecasts due to the ongoing trade war with the United States.

Zhang Haiyun, overseas sales director for Airdog, an air purifier maker based in the eastern Chinese city of Suzhou, said her company has halted shipments to the U.S. since President Donald Trump announced sweeping tariffs of 145% on all products imported from China.

“Basically, there are no freight companies willing to take orders because no one knows what will happen to the tariffs when the goods arrive,” Zhang told The Associated Press from her booth at the Canton Fair, which is China’s largest and oldest trade event.

Trump’s so-called “reciprocal tariffs” on China, and essentially all other U.S. trading partners, loomed heavily at the biannual fair, which has been held since 1957.

Global goods trade is expected to fall by anywhere between 0.2 and 1.5 percent this year, depending how US President Donald Trump's tariffs play out, the World Trade Organization said Wednesday.

Warning that the uncertainty surrounding trade policy could have "severe negative consequences for the world", the WTO said world merchandise trade was currently set to fall 0.2 percent in 2025, but that "severe downside risks" surrounding tariffs "could lead to an even sharper decline of 1.5 percent".

US retail sales jumped in March, according to government data published Wednesday, powered by the auto sector as consumers rushed to buy goods before new tariffs kicked in.

Overall sales grew 1.4 percent last month to $734.9 billion, the commerce department said in a statement. That was slightly above market expectations of a 1.3-percent rise, according to Briefing.com.

The data covered the period immediately before US President Donald Trump's steep new levies on trading partners came into effect, unleashing volatility in the financial markets.

Days later, Trump abruptly and temporarily rolled back the import tariffs to 10 percent for many countries, while sharply hiking them for China, the world's second-largest economy.

Tariffs were likely top of mind for consumers, whose spending at motor vehicles and parts dealers rose 5.3 percent from a month earlier.

Spending at restaurants and bars increased by 1.8 percent from February.

"Consumers have to have willingness to buy, and the ability," Allianz Trade North America senior economist Dan North told AFP.

"The ability is provided by disposable income, and that's slowing down as well. So the outlook after this month isn't particularly encouraging," he said.

After SAIL, another large steel player AMNS India has raised concerns over the possible impact of the US administration's decision to impose tariffs on the domestic industry. "The domestic steel industry needs protectionism", Ranjan Dhar, Director & Vice President - Sales and Marketing at Arcelor Mittal Nippon Steel (AMNS) India, told PTI, adding that and the Indian market does not have appetite for any imported steel.

He made the remarks when asked about the impact of US President Donald Trump's announcement last month to impose 25 per cent tariffs on India's domestic steel and aluminium industry.

Earlier, SAIL Chairman Amarendu Prakash had said the imposition of higher tariffs by the US may change the global "trade flows", increasing the chances of India becoming more vulnerable to steel imports as the countries exporting to the US may divert their shipments in the domestic market.

Dhar said China -- the world's largest steel-producing country -- is among the steel-exporting nations to the US and if it does not find a market, it will have to divert its products somewhere.

Indian stock indices closed handsomely higher Wednesday, amid global trade uncertainties that have emanated from the Trump administration's reciprocal tariffs and Chinese counter tariffs.

Sensex closed at 77,044.29 points, up 309.40 points or 0.40 per cent, Nifty closed at 23,437.20 points, up 108.65 points or 0.47 per cent.

"Benchmark indices extended their winning streak for a third consecutive session on Wednesday, with strong buying in the final hour pushing the index to close near the day's high," said Bajaj Broking.

Globally, markets are undergoing fresh consolidation as tariff tensions intensify, with the US increasing tariffs to 245 per cent on Chinese goods.

"Amidst global weakness, the Indian market exhibited a mild positive sentiment in anticipation that the trade fight between the US and China will not harm but benefit India, and March's CPI inflation which is at a 5-year low is indicative of further rate cuts in the near future," said Vinod Nair, Head of Research, Geojit Investments Limited.

India's retail inflation has touched a 67-month low in March, lending some support to the stock indices.

China told Washington on Wednesday to "stop threatening and blackmailing" after US President Donald Trump said it was up to Beijing to come to the negotiating table to discuss ending their trade war.

Trump has slapped new tariffs on friend and foe but has reserved his heaviest blows for China, with 145 percent on many Chinese imports even as Beijing has retaliated with levies on US goods of 125 percent.

"If the US really wants to resolve the issue through dialogue and negotiation, it should stop exerting extreme pressure, stop threatening and blackmailing, and talk to China on the basis of equality, respect and mutual benefit," foreign ministry spokesman Lin Jian said.

"China's position has been very clear. There is no winner in a tariff war or a trade war," Lin said. "China does not want to fight, but it is not afraid to fight."

This year, Trump has imposed an additional 145 percent tariff on many goods from China, stacking atop duties from previous administrations.

Trump initially imposed 20 percent tariffs on imports from China over its alleged role in the fentanyl supply chain, then added 125 percent over trade practices that Washington deems unfair.

His administration has, however, given temporary reprieve for certain tech products -- like smartphones and laptops -- from the latest levy.

The White House said Tuesday it was up to Beijing to make the first move towards ending the dispute, which economists warn could cause a global recession.

"The ball is in China's court. China needs to make a deal with us. We don't have to make a deal with them," said a statement from Trump read out by Press Secretary Karoline Leavitt.