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Uncertainty over Donald Trump’s tariff blitz mounted Thursday after the Fed chief warned of rising prices and “volatility” while “progress” flagged by the US president in talks with Japan lifted markets slightly.Trump is banking that his tariffs will lead to a bonanza of beneficial trade deals, lowering barriers to US products and shifting global manufacturing to the United States.But his trade negotiations — including with Japan on Wednesday — are proceeding against a backdrop of deepening confrontation with economic rival China and mounting concern over widespread disruption.Federal Reserve boss Jerome Powell said Wednesday that tariffs are “highly likely” to provoke a temporary rise in inflation and could prompt “more persistent” price increases.He also noted the “volatility” in the markets at a “time of high uncertainty.”That unease hit Wall Street, where the Nasdaq at one point plummeted more than four percent on Wednesday, the S&P more than three percent and the Dow Jones more than two.Nvidia momentarily dropped more than 10 percent after disclosing major costs due to new US export restrictions on sending semiconductors to China.Asian markets were mostly in positive territory on Thursday, with Japan’s Nikkei up almost one percent and the Hang Seng 1.25 percent higher.World Bank chief Ajay Banga echoed Powell, saying that “uncertainty and volatility are undoubtedly contributing to a more cautious economic and business environment.”And World Trade Organization head Ngozi Okonjo-Iweala said the uncertainty “threatens to act as a brake on global growth, with severe negative consequences for the world, the most vulnerable economies in particular.”- China says ‘no winner’ -While most of the rest of the world has been slapped with a blanket 10 percent tariff, China faces new levies of up to 145 percent on many products. Beijing has responded with duties of 125 percent on US goods.”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,” Chinese Foreign Ministry spokesman Lin Jian said Wednesday.China said on Wednesday that it saw a forecast-beating 5.4 percent jump in growth in the first quarter as exporters rushed to get goods out of factory gates ahead of the US levies.But Heron Lim from Moody’s Analytics told AFP the impact would be felt in the second quarter, as tariffs begin “impeding Chinese exports and slamming the brakes on investment.”- Japan test case? -After meeting Japan’s tariffs envoy, Trump posted on his Truth Social platform that there had been “big progress”.But after Ryosei Akazawa concluded his talks with Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer it became clear that no immediate breakthrough was made.”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,” Prime Minister Shigeru 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.But he added: “Of course there is a gap between Japan and the US.”Japanese companies are the biggest investors into the United States and Japan is a vital strategic ally for Washington in the Asia-Pacific region.But Japan is subject to the same 10-percent baseline tariffs imposed by Trump on most countries as well as painful levies on cars, steel and aluminum.Trump reportedly wants Japan to buy more US defense equipment and to do more to strengthen the yen against the dollar. Akazawa said that the latter issues was not discussed.Stephen Innes at SPI Asset Management said before the talks that traders were “waiting to see if Akazawa can thread the needle — cut a side deal, dodge Trump’s sledgehammer, and limp out with bruises instead of a shattered jaw.”Officials from Indonesia held talks in Washington on Wednesday. The finance minister of South Korea, a major semiconductor and auto exporter, will meet Bessent next week.Although popular among Republicans, the tariffs war is politically risky for Trump at home. California Democratic Governor Gavin Newsom announced he was launching a new court challenge against Trump’s “authority to unilaterally enact tariffs, which have created economic chaos, driven up prices, and harmed the state, families, and businesses.”burs-stu/tym

Tokyo led stocks higher Thursday as optimism over Japan-US trade talks offset Federal Reserve boss Jerome Powell’s warning that Donald Trump’s tariffs could force officials to choose between fighting inflation or unemployment.Investors are keeping a nervous eye on Washington for the next three months as governments scramble to cut deals to avert crippling tariffs unveiled by the US president on his April 2 “Liberation Day” but delayed for 90 days.With Japanese companies the biggest investors into the United States, Tokyo´s negotiations are of particular interest to markets — with some describing it as the canary in the mine — and traders took heart from early signs.Trump posted on social media that there had been “Big Progress!” and Tokyo’s envoy Ryosei Akazawa said “I understand that the US wants to make a deal within the 90 days. For our part, we want to do it as soon as possible”.And while Japan’s Prime Minister Shigeru Ishiba warned the talks “won’t be easy”, he said the president had “expressed his desire to give the negotiations… the highest priority”.Hopes that Trump’s blistering tariffs can be pared back have helped temper some of the disquiet on markets after a rout at the start of the month fuelled by talk of a global recession and an upending of historic trading norms.Some have said there were rumblings that the target of his most painful measures could be open to dialogue, with Bloomberg reporting China wants to see some measures beforehand, including reining in some cabinet members’ anti-Beijing comments.Shares in Tokyo rose along with Hong Kong, Shanghai, Sydney, Singapore, Seoul and Wellington, though Taipei edged down.However, uncertainty continues to prevail on trading floors after a selloff on Wall Street — and gold hitting a fresh record above $3,350 — sparked by Powell’s warning over the impact of the tariffs.He said that while the Fed’s employment and inflation goals were largely in balance at this point, policymakers could find themselves in the “challenging scenario” depending on how things evolve.”Tariffs are highly likely to generate at least a temporary rise in inflation,” he told the Economic Club of Chicago, adding that the inflationary effects “could also be more persistent.”He added: “You’ll probably see continued volatility.”Chris Weston at Pepperstone said: “Powell has again frustrated some, who perhaps optimistically felt he might change the messaging from his recent communique and to open the door to cuts in the June (policy) meeting, a factor that is priced at 80 percent by interest rate swaps traders.”Oil prices extended gains after Washington on Wednesday sanctioned a second China-based “teapot” refinery for purchasing Iranian crude as it continues its “maximum pressure” campaign against Tehran. The State Department said the measures against Shandong Shengxing Chemical were part of the US president’s campaign to “drive Iran’s illicit oil exports” to zero.- Key figures at 0230 GMT -Tokyo – Nikkei 225: UP 0.9 percent at 34,212.29 (break)Hong Kong – Hang Seng Index: UP 1.2 percent at 21,318.36Shanghai – Composite: UP 0.2 percent at 3,282.41Dollar/yen: UP at 142.55 yen from 142.12 yen on WednesdayEuro/dollar: DOWN at $1.1375 from $1.1395Pound/dollar: DOWN at $1.3224 from $1.3235Euro/pound: DOWN at 86.02 pence from 86.06 penceWest Texas Intermediate: UP 0.8 percent at $62.98 per barrelBrent North Sea Crude: UP 0.6 percent at $66.25 per barrelNew York – Dow: DOWN 1.7 percent at 39,669.39 (close)London – FTSE 100: UP 0.3 percent at 8,275.60 (close)

Concern over the economic fallout from US President Donald Trump’s global tariffs mounted Wednesday, with Fed Chair Jerome Powell’s warning of higher inflation sending stock markets tumbling.Trump remained upbeat, posting on social media that there’d been “Big Progress!” in talks with Japan on a trade deal.He is banking that his strategy, in which tariffs are meant to lead to multiple individual country agreements, will lower barriers to US products and shift global manufacturing to the United States.But those negotiations are running parallel to a deepening confrontation with top US economic rival China — and concern over widespread disruption.Powell said tariffs are “highly likely” to provoke a temporary rise in prices and could prompt “more persistent” increases.He also noted the “volatility” on the markets in a “time of high uncertainty.”That volatility was visible on Wall Street where the Nasdaq at one point plummeted more than four percent, the S&P more than three percent and the Dow Jones more than two.Leading the downward charge was Nvidia, which momentarily dropped more than 10 percent after disclosing major costs due to new US export restrictions on semiconductors imposed as part of Trump’s tussle with China.World Bank chief Ajay Banga echoed Powell, telling reporters that, “uncertainty and volatility are undoubtedly contributing to a more cautious economic and business environment.”- China says ‘no winner’ -While the rest of the world has been slapped with a blanket 10 percent tariff, China faces levies of up to 145 percent on many products. Beijing has responded with duties of 125 percent on US goods.”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,” Chinese Foreign Ministry spokesman Lin Jian said.”There is no winner in a tariff war or a trade war,” Lin said, adding: “China does not want to fight, but it is not afraid to fight.”China said on Wednesday that it saw a forecast-beating 5.4 percent jump in growth in the first quarter as exporters rushed to get goods out of factory gates ahead of the US levies.But Heron Lim from Moody’s Analytics told AFP the impact would be felt in the second quarter, as tariffs begin “impeding Chinese exports and slamming the brakes on investment.”World Trade Organization head Ngozi Okonjo-Iweala said the uncertainty brought by the tariffs “threatens to act as a brake on global growth, with severe negative consequences for the world, the most vulnerable economies in particular.”- Japan test case? -Ahead of the Japan talks, Trump posted on his Truth Social platform that he hoped “something can be worked out which is good (GREAT!) for Japan and the USA!”Japan’s envoy said he was optimistic of a “win-win” outcome for both countries.South Korea, a major semiconductor and auto exporter, said Finance Minister Choi Sang-mok would meet US Treasury Secretary Scott Bessent next week.”The current priority is to use negotiations… to delay the imposition of reciprocal tariffs as much as possible and to minimize uncertainty for Korean companies operating not only in the US but also in global markets,” Choi said on Tuesday.But Stephen Innes at SPI Asset Management called the discussions with Japan the “canary in the tariff coal mine.””If Japan secures a deal — even a half-baked one — the template is set. If they walk away empty-handed, brace yourself. Other nations will start pricing in confrontation, not cooperation,” he wrote in a newsletter.The Daiwa Institute of Research warned on Wednesday that Trump’s reciprocal tariffs could cause a decline of 1.8 percent in Japan’s real GDP by 2029.Although popular among Republicans, the tariffs war is politically risky for Trump at home. California Democratic Governor Gavin Newsom announced he was launching a new court challenge against Trump’s “authority to unilaterally enact tariffs, which have created economic chaos, driven up prices, and harmed the state, families, and businesses.”burs-sms/dw

Wall Street traders were back in sell-off mode Wednesday while the dollar fell further as downcast comments from Federal Reserve Chair Jerome Powell added to weakness in semiconductor giant Nvidia.After a relatively peaceful couple of days on markets following tariff-related volatility last week, investors were once again on the defensive. Gold, a safe-haven asset in times of uncertainty, climbed above $3,300 an ounce for the first time.US equities opened lower, shrugging off solid retail sales data. But the market dropped much more after Powell warned that Trump’s tariffs could put the Federal Reserve in the unenviable position of having to choose between tackling inflation and unemployment.Powell said that while the Fed’s employment and inflation goals were largely in balance at this point, policymakers could find themselves in the “challenging scenario” depending on how things evolve.”Tariffs are highly likely to generate at least a temporary rise in inflation,” Powell told the Economic Club of Chicago, warning that the inflationary effects “could also be more persistent.”US stocks hit session lows shortly after Powell’s comments before recovering a bit in the final minutes of trading.The Nasdaq finished down more than three percent.Nvidia ended down around seven percent after earlier slumping more than 10 percent. The chip company disclosed in a securities filing that it expects a $5.5 billion hit connected to export licenses for technology that the US government determined could be used for a Chinese supercomputer.Powell’s comments “sparked stagflation concerns,” said Jack Ablin of Cresset Capital. Powell “took what was a moderately down day into a pretty dramatic slide,” Ablin added.The dollar also weakened further after Powell’s remarks, retreating about one percent against the euro.”Markets are increasingly convinced that the US economy is losing steam,” said a comment from Forexlive published ahead of Powell’s remarks that pointed to market speculation about Fed interest rate cuts.The battering on Wall Street followed a mixed session in Europe.London’s benchmark FTSE 100 stock index closed 0.3 percent higher, as official data showed UK inflation slowed more than expected in March.Frankfurt also finished 0.3 percent in the green while Paris fell almost 0.1 percent.Last week Trump backed off his most onerous “reciprocal” tariffs for every country except China, while maintaining a range of other levies, including on car imports. There has been little sign of rapprochement between Washington and Beijing, which has responded with increased levies of its own. “Markets continue to suffer from the White House’s tariff flip-flopping,” said Fawad Razaqzada, market analyst at City Index and Forex.com.”The stop-start nature of US trade policy this month has made long-term positioning something of a fool’s errand, with volatility dominating the landscape.”- Key figures at 2050 GMT -New York – Dow: DOWN 1.7 percent at 39,669.39 (close)New York – S&P 500: DOWN 2.2 percent at 5,275.70 (close)New York – Nasdaq: DOWN 3.1 percent at 16,307.16 (close)London – FTSE 100: UP 0.3 percent at 8,275.60 (close)Paris – CAC 40: DOWN 0.1 percent at 7,329.97 (close)Frankfurt – DAX: UP 0.3 percent at 21,311.02 (close)Tokyo – Nikkei 225: DOWN 1.0 percent at 33,920.40 (close)Hong Kong – Hang Seng Index: DOWN 1.9 percent at 21,056.98 (close)Shanghai – Composite: UP 0.3 percent at 3,276.00 (close)Euro/dollar: UP at $1.1395 from $1.1282 on TuesdayPound/dollar: UP at $1.3235 from $1.3231Dollar/yen: DOWN at 142.12 yen from 143.21 yen Euro/pound: UP at 86.06 pence from 85.26 penceBrent North Sea Crude: UP 1.8 percent at $65.85 per barrelWest Texas Intermediate: UP 1.9 percent at $62.47 per barrelburs-jmb/acb

US President Donald Trump touted tariff negotiations with Japan on Wednesday while China angrily accused Washington of “blackmail” in a trade war that the WTO warns will have “severe” economic consequences for the global economy.Trump remained upbeat about his strategy of imposing global tariffs, then negotiating individual trade agreements, with the goal of lowering barriers to US products and forcing more manufacturing to be based in the United States.He said he would meet a Japanese delegation Wednesday both on tariffs and another of his longtime complaints — the cost of the US military deployments to defend the crucial Pacific ally.”Japan is coming in today to negotiate Tariffs, the cost of military support, and ‘TRADE FAIRNESS.’ I will attend the meeting,” Trump posted on his Truth Social app.The multiple negotiations the Trump administration says are underway are running parallel to a full trade war against top US economic rival China.While the rest of the world has been slapped with a blanket 10 percent tariff, China faces levies of up to 145 percent on many products. Beijing has responded with duties of 125 percent on US goods.There is little sign of rapprochement, with the White House insisting that China make the first move.”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.”There is no winner in a tariff war or a trade war,” Lin said, adding: “China does not want to fight, but it is not afraid to fight.”Beijing’s commerce ministry noted that taking into account previous tariffs and the new ones, certain Chinese products now cumulatively face 245 percent duties to enter the US market.While concern is growing that the US economy could be rocked by the trade war, China said on Wednesday that it saw a forecast-beating 5.4 percent in the first quarter as exporters rushed to get goods out of factory gates ahead of the US levies.Heron Lim from Moody’s Analytics told AFP the impact would be felt in the second quarter, as tariffs begin “impeding Chinese exports and slamming the brakes on investment.”World Trade Organization head Ngozi Okonjo-Iweala said the uncertainty brought by the tariffs “threatens to act as a brake on global growth, with severe negative consequences for the world, the most vulnerable economies in particular.”- Japan test case? -Trump posted that he hoped “something can be worked out which is good (GREAT!) for Japan and the USA!”And Japan’s envoy said he was optimistic of a “win-win” outcome for both countries.South Korea, a major semiconductors and auto exporter, said Finance Minister Choi Sang-mok would meet US Treasury Secretary Scott Bessent next week.”The current priority is to use negotiations… to delay the imposition of reciprocal tariffs as much as possible and to minimize uncertainty for Korean companies operating not only in the US but also in global markets,” Choi said on Tuesday.Stephen Innes at SPI Asset Management called the discussions with Japan in particular the “canary in the tariff coal mine.””If Japan secures a deal — even a half-baked one — the template is set. If they walk away empty-handed, brace yourself. Other nations will start pricing in confrontation, not cooperation,” he wrote in a newsletter.The Daiwa Institute of Research warned on Wednesday that Trump’s reciprocal tariffs could cause a decline of 1.8 percent in Japan’s real GDP by 2029.Chip stocks across Asia slumped after Nvidia said it expected a $5.5 billion hit due to a new US licensing requirement on the primary chip it can legally sell in China.Trump also ordered a probe on Tuesday that may result in tariffs on critical minerals, rare-earth metals and associated products such as smartphones.Although popular among Republicans, the tariffs war is politically risky for Trump at home. California Democratic Governor Gavin Newsom announced he was launching a new court challenge against Trump’s “authority to unilaterally enact tariffs, which have created economic chaos, driven up prices, and harmed the state, families, and businesses.”burs-sms/aha

The uncertainty kicked up by Donald Trump’s stop-start tariff rollout will undoubtedly hit growth, the president of the World Bank said Wednesday, ahead of next week’s semi-annual meeting of global financial leaders in Washington.”Uncertainty and volatility are undoubtedly contributing to a more cautious economic and business environment,” Ajay Banga told reporters, alluding to the market turbulence unleashed by the new US administration’s tariff policy. This uncertainty would “certainly” cause slower growth than previously anticipated, he added during the virtual event. The World Bank and International Monetary Fund’s (IMF) Spring Meetings kick off on Monday, with the Bank keen to promote its agenda to drive job creation in developing and emerging market economies. But the gathering of finance ministers and central bankers will take place against a challenging international backdrop, with US President Donald Trump’s tariff policy threatening to derail economic growth in many parts of the world.Since taking office in January, the US president has imposed 25 percent levies on several sectors including, autos, steel and aluminum, as his administration seeks to redress what it says is an unfair trading relationship with the rest of the world. The White House also imposed a new “baseline” tariff of 10 percent on most countries, and announced higher import taxes on dozens of trading partners, only to then temporarily roll many of them back. China — America’s third-largest trading partner — has been hit with a barrage of new tariffs totalling 145 percent overall. Beijing, in turn, has announced retaliatory tariffs of 125 percent on US goods.- ‘The right questions’ – The United States is the top shareholder at the World Bank Group, and has historically been a key driver of policy at the Washington-based institution, which has been led by a US citizen for most of its history.Shortly before leaving office, Joe Biden’s administration committed the United States to $4 billion in new funding for the World Bank’s agency that leverages donor funds to provide loans and grants to some of the world’s poorest countries. The Trump administration has so far refused to commit to that $4 billion figure, raising questions about how much money it plans to contribute to the World Bank and other international financial institutions such as the International Monetary Fund (IMF). Speaking on Wednesday, Banga indicated that the Bank would make do with a smaller budget if the United States did not provide funding at the same level as before, but that he still hoped Washington would come around. “We’re having a constructive dialogue with the US administration,” he said. “I don’t know where it’ll end, but I’ve got no problem with the dialogue I’m having.””They’re asking the right questions, and we’re trying to give them the right answers,” he added. – Nuclear, gas financing -Donald Trump has a long public record questioning the impact of man-made climate change. Since his return to office, concerns have been raised that his administration’s view on climate change could hit the World Bank, which has committed to increasing its climate finance portfolio to 45 percent of total lending. Banga told reporters on Wednesday that, while “the words might be a problem in different people’s eyes,” the Bank’s climate actual commitments should be less controversial. “We are not taking away from education and schools and development to fund something,” he said. “What’s inside the 45 (percent) is a commitment that half of it, over time, will go to resiliency and adaptation.”Banga also suggested that the Bank could soon take another look at funding nuclear and natural gas energy projects — something that would require approval from donor countries. “There is no reason why a country in Africa should not care about affordable, accessible electricity,” he said. “And it includes gas, geothermal, hydroelectric, solar, wind and nuclear where it makes sense,” he added. 

Wall Street shares fell but European stocks diverged Wednesday after the US government imposed restrictions on exports of a key Nvidia chip to China, the latest trade war salvo between the world’s biggest economies.After a relatively peaceful couple of days on markets following tariff-related volatility last week, investors were once again on the defensive, sending gold, a safe-haven asset in times of uncertainty, above $3,300 an ounce for the first time.Wall Street’s main indexes were down in late morning deals, with Nvidia shares tanking by more than six percent and the dollar under pressure again.Nvidia notified regulators late Tuesday that it expects a $5.5 billion hit this quarter owing to a new US licencing requirement on the chip it can legally sell in China.The company at the heart of helping to power artificial intelligence said it must obtain licences to export its H20 chips to the Asian country because of concerns they would be used in supercomputers there.”It’s another stark reminder that geopolitics and technology remain deeply entangled — and that markets will continue to dance to Washington’s tune, whether they like it or not,” said Fawad Razaqzada, market analyst at City Index and Forex.com.The United States on Monday opened the door to tariffs targeting semiconductors and chip-making equipment, with Trump saying on Sunday an announcement would be made “over the next week”.Trump has also kicked off an investigation that could see tariffs imposed on critical minerals such as rare earths, which are used in a wide range of products including smartphones, wind turbines and electric vehicle motors.It is the latest front in Trump’s erratic trade war, which has seen the US leader impose a universal 10-percent duty, pause higher levies on some countries and temporarily exempt some sectors from duties.”Markets continue to suffer from the White House’s tariff flip-flopping,” Razaqzada said.”The stop-start nature of US trade policy this month has made long-term positioning something of a fool’s errand, with volatility dominating the landscape.”In Europe, London’s benchmark FTSE 100 stock index closed 0.3 percent higher, as official data showed UK inflation slowed more than expected in March.Frankfurt also finished 0.3 percent in the green but Paris fell almost 0.1 percent.Shares in Dutch tech giant ASML, which makes machines that produce semiconductors, fell more than five percent as its net bookings came in below expectations.ASML’s disappointing earnings report “has only added to the sector-wide tech concerns”, said David Morrison, analyst at Trade Nation.The dollar slid once more against main rivals. Yields on 10-year Treasury bills eased but remain high following a selloff last week that raised doubts about the haven stauts of US bonds.Gold hit a record $3,317.75 an ounce before paring back gains.Oil prices rose almost two percent after recent sharp falls on fears that the tariffs will dampen global economic growth.- Key figures at 1540 GMT -New York – Dow: DOWN 0.1 percent at 40,332.34 pointsNew York – S&P 500: DOWN 0.7 percent at 5,356.74New York – Nasdaq: DOWN 1.6 percent at 16,556.19London – FTSE 100: UP 0.3 percent at 8,275.60 (close)Paris – CAC 40: DOWN 0.1 percent at 7,329.97 (close)Frankfurt – DAX: UP 0.3 percent at 21,311.02 (close)Tokyo – Nikkei 225: DOWN 1.0 percent at 33,920.40 (close)Hong Kong – Hang Seng Index: DOWN 1.9 percent at 21,056.98 (close)Shanghai – Composite: UP 0.3 percent at 3,276.00 (close)Euro/dollar: UP at $1.1370 from $1.1291 on TuesdayPound/dollar: UP at $1.3235 from $1.3232Dollar/yen: DOWN at 142.65 yen from 143.18 yen Euro/pound: UP at 85.90 pence from 85.30 penceBrent North Sea Crude: UP 1.9 percent at $65.92 per barrelWest Texas Intermediate: UP 1.9 percent at $61.91 per barrelburs-bcp-lth/rmb

Prime Minister Anthony Albanese promised on Wednesday to defend Australia’s interests in its trade tangle with the United States, in a televised debate ahead of May 3 national elections.US President Donald Trump’s 10 percent tariffs on close ally Australia have loomed large in the duel between 62-year-old Albanese and his hard-nosed conservative challenger, former policeman Peter Dutton.Asked if he trusted the US president, Albanese said he had “no reason not to” despite Trump having promised to give “great consideration” to Canberra’s free trade arguments before deciding to impose the tariffs anyway.”We made it very clear that it was an act of self-harm,” the centre-left Labor Party leader said.But Albanese said his government “won’t budge” from Australian policies to ensure access to cheap medicines, enforce health rules on beef imports, and make big social media platforms pay for using local Australian news.”We will stand up for Australia’s national interest, because that is important,” he said.Albanese’s Labor Party has crept into a narrow lead in recent opinion polls, with some pundits citing public support for his criticism of the US tariffs that he has denounced as “not the act of a friend”.Dutton — running with the slogan “Let’s get Australia back on track” — has abandoned a poorly received promise to ban working from home for public sector staff, and softened a plan to axe tens of thousands of public sector jobs.Asked if he trusted Trump, Dutton replied: “Well, we trust the United States. And I don’t know the president. I have not met him.”But the 54-year-old opposition leader said his Liberal-National Party conservative coalition had contacts in the White House that would enable it to open negotiations on the tariffs.”We should be doing everything we can to enhance the relationship, to make our two countries stronger together,” he said.”We have stood with America in every battle. It’s an incredible relationship.”- Nuclear reactors -On defence, Albanese denied having any contingency plans in case the Trump administration pulls out of a US-British-Australian agreement to equip Australia’s navy with stealthy, nuclear-powered submarines.The so-called AUKUS agreement “is in the interest of the US”, he said.Both sides have promised measures to tame the cost of living, which top voters’ concerns in the polls.However, their biggest divide is on how to tackle climate change.Albanese’s government has embraced the global push towards decarbonisation, warning of a future in which iron ore and polluting coal exports no longer prop up the economy. His election catchcry is “building Australia’s future” — an agenda that includes big subsidies for renewable energy and green manufacturing in the sun-soaked country.Dutton’s signature policy is a US$200 billion scheme to construct seven industrial-scale nuclear reactors while slowing the rollout of solar and wind-generated energy.Dutton said in Wednesday’s debate on public broadcaster ABC that he would use the federal government’s powers to build nuclear power plants “if need be”, even in the face of local and state opposition.Though conceding climate change was having an impact, Dutton said he could not tell whether it was causing specific floods or disasters that were part of the history of Australia.”I will let scientists and others pass that judgement.”Albanese replied that the science was clear, even if climate change could not be traced to every weather event.”The science told us that the events would be more extreme and they would be more frequent, and that is what we are seeing playing out,” he said.Voting in Australian elections has been compulsory since 1924. Registered voters who do not cast their ballot are slapped with an “administrative penalty” of around Aus$20 (US$12). Turnout consistently tops 90 percent. 

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 alike but has reserved his heaviest blows for China, with new levies of up to 145 percent on many Chinese imports even as Beijing has retaliated with duties 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, adding: “China does not want to fight, but it is not afraid to fight.”Trump’s new levies mean that the tariffs on certain Chinese goods are as high as 245 percent, which the White House said in a factsheet on Tuesday were “as a result of its retaliatory actions”.Beijing’s commerce ministry said in a statement later on Wednesday it had “noted that the cumulative tariffs on some individual Chinese exports to the US have reached 245 percent under various designations”, without detailing the scope of the products affected.”The United States has instrumentalized and weaponized tariffs to a completely irrational level,” the ministry said, adding that China would “ignore the US’s utterly meaningless tariff numbers game”.The Republican initially imposed 20 percent tariffs on imports from China over its alleged role in the fentanyl supply chain, on top of duties from previous administrations, then added 125 percent over trade practices that Washington deems unfair.His administration has, however, given temporary reprieve for certain tech products such as smartphones and laptops. The White House said on 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.- China growth -China said on Wednesday its economy grew a forecast-beating 5.4 percent in the first quarter as exporters rushed to get goods out of factory gates ahead of the US levies.”The escalation happening in April is going to be felt in the second-quarter figures as the tariffs will send stateside firms looking to other suppliers, impeding Chinese exports and slamming the brakes on investment,” Heron Lim from Moody’s Analytics told AFP.Japan’s envoy for talks slated for Wednesday in Washington said he was optimistic of a “win-win” outcome for both countries.Ryosei Akazawa, who was due to meet US Treasury Secretary Scott Bessent, said he would “protect our national interest”.Carmaker Honda said on Wednesday it will shift production of its hybrid Civic model from Japan to the United States, although that represents a very small part of its global output.The rationale behind the decision “is not a single issue”, a spokesman for the Japanese firm said. “The decision is based on the company’s policy since its foundation that we produce cars where the demand is.”South Korea, another major exporter in particular of semiconductors and cars, said Finance Minister Choi Sang-mok would meet Bessent next week.”The current priority is to use negotiations… to delay the imposition of reciprocal tariffs as much as possible and to minimise uncertainty for Korean companies operating not only in the US but also in global markets,” Choi said on Tuesday.Trump has imposed the steep duties on imports from China since the start of the year, alongside his 10 percent “baseline” tariff on many US trading partners.His administration recently widened its exemptions from those tariffs, excluding certain tech products like smartphones and laptops from the global 10 percent tariff and the 125 percent levy on China.Chip stocks across Asia slumped after Nvidia said it expects a $5.5 billion hit due to a new US licensing requirement on the primary chip it can legally sell in China.Trump also ordered a probe on Tuesday that may result in tariffs on critical minerals, rare-earth metals and associated products such as smartphones.burs-mjw/pbt

European and Asian stock markets mostly retreated Wednesday after the US government imposed restrictions on exports of a key Nvidia chip to China, the latest trade war salvo between the world’s biggest economies.Nvidia late Tuesday notified regulators that it expects a $5.5 billion hit this quarter owing to a new US licensing requirement on the chip it can legally sell in the Asian country.The company at the heart of helping to power artificial intelligence said it must obtain licenses to export its H20 chips to China because of concerns they may be used in supercomputers there.President Donald Trump’s decision over Nvidia is “signalling a tech-led decline for US equities” when Wall Street opens, noted Joshua Mahony, analyst at trading group Scope Markets.After a relatively peaceful couple of days on markets following last week’s tariff-fuelled ructions, investors were once again on the defensive, sending safe haven gold above $3,300 an ounce for the first time.Nvidia shares tumbled around six percent in after-market trade, and its Asian suppliers were also hit.Trump has also kicked off an investigation that could see tariffs imposed on critical minerals such as rare earths, which are used in a wide range of products including smartphones, wind turbines and electric vehicle motors.”Nvidia dropped the mic, revealing fresh export curbs on AI gear headed to China,” said Stephen Innes at SPI Asset Management. “Then came the other shoe: Trump ordering a new probe into tariffs on critical minerals. Boom — just like that, we’re back in whiplash mode.”Welcome to the new normal: one step forward, two tariff probes back,” added Innes.In Europe, London’s benchmark FTSE 100 stocks index was down about 0.5 percent around midday, even as official data showed UK inflation slowed more than expected in March.Paris and Frankfurt shed a similar amount. The dollar slid once more against main rivals, helping gold to reach yet another fresh record high, this time at $3,317.75.Oil prices rose nearly one percent after recent sharp falls on fears that the tariffs will dampen global economic growth.However, cheaper oil could help put on lid on inflation, analysts said.Trump’s most recent moves mark the latest salvo in an increasingly nasty row that has seen Washington and Beijing hit each other with eye-watering tariffs.China did little to soothe worries Wednesday by saying US levies were putting pressure on its economy, even if official data showed it expanded more than expected in the first quarter.Beijing told Washington to “stop threatening and blackmailing”.A decision by Hong Kong’s postal service to stop shipping US-bound goods in response to “bullying” levies added to the unease.- Key figures around 1035 GMT -London – FTSE 100: DOWN 0.4 percent at 8,220.27 pointsParis – CAC 40: DOWN 0.5 percent at 7,295.34Frankfurt – DAX: DOWN 0.5 percent at 21,150.31 Tokyo – Nikkei 225: DOWN 1.0 percent at 33,920.40 (close)Hong Kong – Hang Seng Index: DOWN 1.9 percent at 21,056.98 (close)Shanghai – Composite: UP 0.3 percent at 3,276.00 (close)New York – Dow: UP 0.4 percent at 40,368.96 (close)Euro/dollar: UP at $1.1369 from $1.1291 on TuesdayPound/dollar: UP at $1.3272 from $1.3232Dollar/yen: DOWN at 142.66 yen from 143.18 yen Euro/pound: UP at 85.69 pence from 85.30 penceBrent North Sea Crude: UP 0.9 percent at $65.23 per barrelWest Texas Intermediate: UP 0.9 percent at $61.87 per barrelburs-bcp/lth