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Nvidia CEO Jensen Huang held talks with Chinese leaders in Beijing on Thursday, state media said, days after the United States curbed sales of its H20 artificial intelligence chips to China.Nvidia this week said it expected a $5.5 billion earnings hit this quarter due to a new US licensing requirement on GPUs (graphics processing units) with bandwidths similar to the H20, the primary chip it could legally sell in China.Shares in the company edged lower on Thursday morning after slumping around seven percent on Wednesday.In Beijing, Huang met with Vice Premier He Lifeng, telling him that he “looked favourably upon the potential of the Chinese economy”, according to state news agency Xinhua.Huang said he was “willing to continue to plough deeply into the Chinese market and play a positive role in promoting US-China trade cooperation”, Xinhua said.The report cited He as saying that the national economy “has always been fertile soil for foreign enterprises to conduct investment and trade”.”We welcome more US enterprises like Nvidia to dig deeply into the Chinese market and display their industrial advantages and capacities, and thereby win the initiative in global competition,” He reportedly said.Huang also met Ren Hongbin, head of the China Council for the Promotion of International Trade, telling him that “China is a very important market for Nvidia”, according to state broadcaster CCTV.Nvidia, a key provider of chips used in AI, is trying to maintain sales in China as US President Donald Trump wages a trade war with Beijing.Huang on Thursday expressed hope for “continued cooperation” with China, state media said.Since Trump took office in January, Washington has imposed new tariffs of up to 145 percent on Chinese imports.Beijing retaliated with 125 percent levies on US goods.Under Joe Biden, Trump’s predecessor, Washington had already restricted exports to China of Nvidia’s most sophisticated GPUs, tailored for powering top-end AI models.Huang has said publicly that Nvidia will balance legal compliance and technological advances under Trump — but has vowed that nothing will stop the global advance of AI.”We’ll continue to do that and we’ll be able to do that just fine,” the Taiwan-born entrepreneur told reporters last year.Nvidia generated $17 billion in China in 2024, 13 percent of its total sales.

As President Donald Trump’s tariffs threaten the US economy, questions are being asked about how long the dollar can maintain its status as the world’s key trading and reserve currency. AFP examines the greenback’s current situation and outook:- Is the dollar still all-powerful? -The dollar, whose strength is based on the economic and political power of the United States, is traditionally considered a preferred safe haven in times of crisis or conflict.Almost 58 percent of foreign exchange reserves together held by the world’s central banks were denominated in dollars as of the final quarter last year, according to the International Monetary Fund.That compares with 71 percent in 1999, with the drop attributed to rising competition from smaller currencies.Roughly half of all global transactions by value are currently in dollars, compared with around 22 percent for the euro, seven percent for the pound sterling, and four percent for the Chinese yuan, according February data from international payments facilitator Swift. Many strategic commodities, such as oil, are quoted in the greenback, reinforcing its central role across global trade.However, the recent decline in the dollar’s value suggests its safe haven status “has at least temporarily disappeared” in favour of the Swiss franc, yen and gold, Ryan Chahrour, a professor of economics at Cornell University, told AFP.- ‘Exorbitant privilege’? -Before the dollar took charge, sterling dominated international trade, driven by the UK’s status as an industrial powerhouse beginning in the 19th century.However, following the Second World War, a ruined Europe desperately needed liquidity, while the United States found itself in a position of strength. The dollar emerged as the new reference currency under the Bretton Woods accords of 1944, which laid the foundations for the current international monetary system. Many countries have since chosen to peg their currency to the US unit, while demand for dollars has allowed the world’s biggest economy to borrow freely, theoretically without limits, with its debt largely owed to foreign investors.Former French finance minister Valery Giscard d’Estaing described this economic advantage enjoyed by the United States as an “exorbitant privilege”, ahead of becoming French president in the 1970s.On the other hand, the relative strength of the greenback despite recent turmoil makes American exports more expensive.To counter this, Trump advisor Stephen Miran is considering major global reform aimed at devaluing the US currency. At the same time, several central banks have begun a process of “de-dollarising” their reserves. By using the dollar extensively, countries and companies expose themselves to US sanctions — as illustrated by the freezing of Russia’s foreign exchange reserves abroad following its invasion of Ukraine in early 2022.- Why is Trump shaking the dollar? -The dollar initially gained on news of Trump’s tariffs owing to concerns the levies will push up inflation.However, that has given way to rising fears that global growth will be impacted, causing recent heavy falls for oil prices that in turn have reduced inflationary pressures.Expectations that the US Federal Reserve could cut interest rates to prop up the economy are also weighing on the dollar.Another fear is that the Fed is no longer fulfilling its role as lender of last resort, as it limits the availability of dollars to other central banks.Trump is contributing to “undermining the foundations of dollar dominance”, tarnishing the reputation of the United States, believes Mark Sobel, a former senior US Treasury official. He argues that in addition to weakening the country’s economic strength through his trade policy, Trump is challenging the rule of law.”The United States is not acting like a reliable partner or trusted ally,” he told AFP.- What alternatives? -Sobel said it is “premature to say dollar dominance is going away or the dollar has lost its kind of global status because there aren’t alternatives”.Stefan Lewellen, assistant professor of finance at Pennsylvania State University, said it is not yet time to write the currency’s “obituary”.Looking at why the euro is not ready to take the helm, he added that the European single currency is “fundamentally still governed by individual nations that have mixed incentives to cooperate”. Among other units, he said the Canadian and Australian dollars, as well as the Swiss franc, are limited by the modest size of their markets. As for the yuan, it remains under Beijing’s strict control, owing to the lack of free convertibility and restrictions on capital movements.

European stock markets dropped Thursday following Asian gains as investors awaited an expected interest rate cut by the European Central Bank while US President Donald Trump blasted the head of the Federal Reserve.Safe-haven investment gold hit a fresh record above $3,357.78 an ounce, while the dollar and oil prices firmed.Fed chairman Jerome Powell warned on Wednesday that Trump’s sweeping tariffs on virtually every trade partner could put the US central bank in the unenviable position of having to choose between tackling inflation and unemployment.His comments led to sharp losses Wednesday on Wall Street, as did chip giant Nvidia flagging hefty costs it faced owing to the US-China trade war.”All-in-all, the trade news and Powell’s comments provided a tough backdrop for market,” said a Deutsche Bank analyst note.Trump hit back Thursday, slamming Powell for not lowering interest rates like the ECB has done and saying his “termination cannot come fast enough”.Eyes were on the ECB which is expected to cut interest rates again, with Trump’s stop-start tariff announcements sowing concern in the eurozone.Tokyo led Asian stocks higher as optimism over Japan-US trade talks offset Federal Reserve boss Jerome Powell’s warning that Trump’s tariffs could force officials to choose between fighting inflation or unemployment.Investors are keeping a nervous eye on Washington as governments scramble to cut deals to avert crippling tariffs the US president unveiled on his April 2 “Liberation Day” but then delayed for 90 days.”Tariffs continue to make the headlines, with Donald Trump claiming that ‘big progress’ had been made in talks with Japanese negotiators, aimed at lowering the hefty tariffs that the US will otherwise impose in under three months,” noted Steve Clayton, head of equity funds at Hargreaves Lansdown. 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 coal mine — and traders took heart from early signs.Trump posted on social media that there had been “Big Progress!”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.”While Japan’s Prime Minister Shigeru Ishiba warned that 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.- Key figures at 1130 GMT -London – FTSE 100: DOWN 0.7 percent at 8,218.19 pointsParis – CAC 40: DOWN 0.8 percent at 7,268.90Frankfurt – DAX: DOWN 0.6 percent at 21,178.14Tokyo – Nikkei 225: UP 1.4 percent at 34,377.60 (close)Hong Kong – Hang Seng Index: UP 1.6 percent at 21,395.14 (close)Shanghai – Composite: UP 0.1 percent at 3,280.34 (close)New York – Dow: DOWN 1.7 percent at 39,669.39 (close)Euro/dollar: DOWN at $1.1368 from $1.1395 on WednesdayPound/dollar: DOWN $1.3234 at $1.3235Dollar/yen: UP at 142.50 yen from 142.12 yen Euro/pound: DOWN at 85.91 pence from 86.06 penceBrent North Sea Crude: UP 1.0 percent at $66.51 per barrelWest Texas Intermediate: UP 1.2 percent at $62.55 per barrel

Tokyo led Asian stocks higher on 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 the US president unveiled on his April 2 “Liberation Day” but then 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 coal 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 that 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 that China wants to see some measures beforehand, including reining in some cabinet members’ anti-Beijing comments.Shares in Tokyo rose more than one percent with Hong Kong, Singapore and Mumbai, while Shanghai, Sydney, Seoul, Wellington, Bangkok and Jakarta were also up. Taipei edged down along with London, Paris and Frankfurt.However, uncertainty continues to prevail on trading floors after a selloff on Wall Street — and gold hitting a fresh record above $3,357 — 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.”The World Trade Organization warned on Wednesday of “severe negative consequences” for the world because of the trade war, with boss Ngozi Okonjo-Iweala saying she was “very concerned” and that China-US volumes could collapse as much as 81 percent.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 0810 GMT -Tokyo – Nikkei 225: UP 1.4 percent at 34,377.60 (close)Hong Kong – Hang Seng Index: UP 1.6 percent at 21,395.14 (close)Shanghai – Composite: UP 0.1 percent at 3,280.34 (close)London – FTSE 100: DOWN 0.4 percent at 8,240.16 Dollar/yen: UP at 142.79 yen from 142.12 yen on WednesdayEuro/dollar: DOWN at $1.1378 from $1.1395Pound/dollar: UP at $1.3241 from $1.3235Euro/pound: DOWN at 85.92 pence from 86.06 penceWest Texas Intermediate: UP 0.9 percent at $63.03 per barrelBrent North Sea Crude: UP 0.8 percent at $66.35 per barrelNew York – Dow: DOWN 1.7 percent at 39,669.39 (close)

Taiwanese chipmaking titan TSMC reported on Thursday 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.Taiwan Semiconductor Manufacturing Company is the world’s largest contract maker of chips that have become the lifeblood of the global economy, powering everything from smartphones to missiles.Demand for chips has soared in recent years with the growth of AI technology, but there are fears US President Donald Trump’s far-reaching tariffs could drive up consumer prices and hurt chipmakers.TSMC, which counts Nvidia and Apple among its clients, said its net profit for the first three months of 2025 rose 60.3 percent from a year ago to NT$361.56 billion ($11.1 billion).That beat expectations of NT$346.76 billion, according to a Bloomberg News survey of analysts.Net revenue for the quarter soared nearly 42 percent to NT$839.25 billion on-year, also beating forecasts, figures released by the company last week showed.The first quarter ended before Trump’s “Liberation Day” tariffs on April 2.TSMC chairman and chief executive C.C. Wei said the company understood there were “uncertainties and risk from the potential impact of tariff policies” but so far it had not detected “any change in customer behaviour”.  “We continue to expect our full-year 2025 revenue to increase by close to mid-20s percent in US dollar terms,” Wei said, adding that AI-related demand was also expected to be “robust”.”We might get a better picture in the next few months and we will continue to closely monitor the potential impact to the end-market demand and manage our business prudently,” Wei said.TSMC’s earnings follow Nvidia’s announcement that it expects a $5.5 billion hit this quarter owing to a new US licensing requirement on the H20 chips it can legally sell in China.Dutch tech giant ASML, which makes machines that produce semiconductors, also warned of growing economic uncertainty due to US tariffs but kept its 2025 sales forecast intact.- Tariff impact -TSMC has been in the cross-hairs of Trump, who has accused Taiwan of stealing the US chip industry.There had been hopes that TSMC’s plan to invest an additional $100 billion in the United States would shield Taiwan from new tariffs.Trump still imposed a 32 percent duty on Taiwanese imports as part of his sweeping tariffs on global trade partners — which he later paused for 90 days — but it excluded semiconductors.Washington is pushing forward with plans to slap import levies on semiconductors and chip-making equipment, with the launch of “national security” probes into the industry.Taiwan’s Minister of Economic Affairs Kuo Jyh-huei said on Tuesday the government would carry out simulations to gauge the possible impact of US tariffs.Taiwanese negotiators have started talks with US officials over Trump’s tariffs but Wei said TSMC was “not getting involved”.Taiwan already pledged to increase investment in the United States, purchase more US energy and boost defence spending to more than three percent of GDP in a bid to head off Trump’s levies.Also clouding the outlook for TSMC was a report that it planned to form a joint venture with Intel to operate the American company’s chipmaking facilities.Wei said on Thursday that “TSMC is not engaged in any discussion with other companies regarding any joint venture, technology licensing or technology transfer and sharing”.

Watching Chinese money flow into his home city of Sihanoukville, Cambodian linguist Um Keangseng opened a language school to meet the growing demand for Mandarin lessons.Sihanoukville has been the biggest recipient of Chinese investment into Cambodia, where President Xi Jinping will arrive Thursday.”Every province has Chinese investors,” said Um Keangseng, who founded his school a decade ago to address the market for skilled communicators.”There are Chinese businesses everywhere,” he said, to the point where “Chinese and English are both equally important”.Um Keangseng’s Tai Zhong No.2 School has more than 400 part-time students, from elementary to college age, learning Mandarin — the world’s most spoken first language.The 39-year-old grew up learning Chinese from his grandparents, migrants from Guangdong province. “People used to laugh at us,” he said, believing Chinese was not as useful as English, French or Thai.Now many of his former students have gone into business with the Chinese, to work in their companies or even become investors themselves.- ‘Unstoppable rise’ -While Um Keangseng displayed characters on a computer screen, student Ouk Sok Heng carefully practised the stroke order.The 18-year-old has never set foot in China but has ambitions to continue his IT studies at a Chinese university.”In the future, I want to do business with Chinese people. It will be easy (to earn money) if I can speak Chinese,” he said.The port city of Sihanoukville is packed with Chinese-owned and run casinos, hotels, restaurants and factories which have opened in recent years.Um Keangseng said his small nation relies on foreign countries — “especially China” — with language being an important aspect “to develop our country together”.Mandarin skills open up opportunities in the city, such as receptionist jobs, said student Kok Ravy.”If we don’t speak Chinese, it will be difficult for us,” said the 21-year-old.Analyst Ou Virak hopes Cambodians will be able to diversify their language skills, without forgetting their roots and identity.”I would want us to entrench ourselves in the Khmer language and the Khmer culture,” he said.But parents are increasingly sending their children to Mandarin lessons to boost their prospects, he said, and because of a “notion of the… unstoppable rise of China”.

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