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China’s leadership convenes next week for closed-door meetings to hammer out plans to shield the ailing economy from tariffs and trade threats from US President Donald Trump.The “Two Sessions” gatherings of the country’s parliament and top advisory body are primarily talking shops, rubber-stamping decisions made by the Communist Party while giving a veneer of openness and accountability.But they do offer a rare glimpse into the leadership’s priorities and concerns while facing an unpredictable United States — China’s largest trading partner and strategic rival.Ahead of the meeting, Chinese President Xi Jinping admitted the country’s economy was facing “numerous difficulties”, writing in an article set to be published this week in ruling Communist Party journal Qiushi, state media said.But Xi also stressed “the conditions supporting long-term growth and the overall positive trajectory have not changed”.All eyes will be on Wednesday’s opening of the National People’s Congress parliament, where Premier Li Qiang will lay out economic growth goals for 2025, offering insights into just how optimistic Beijing is about the year ahead, as well as new military spending.Analysts polled by AFP broadly agreed that Beijing will set a goal of around five percent growth — the same as 2024.Many see that as an ambitious objective given the headwinds China is battling, and Beijing’s continued reluctance to inject the economy with the kind of large-scale stimulus observers say it needs.”From the faltering property market to weak household spending, elevated youth unemployment and tariffs, the economy is having a tough time,” Harry Murphy Cruise, head of China and Australia economics at Moody’s Analytics, told AFP.”Any one of those challenges would be a headache for officials; combined, they are a migraine.”- More unpredictable -Likely top of the agenda is Trump, who in just over a month back in the White House has overturned the international order and proven even more unpredictable than in his first term.The US president imposed additional 10 percent duties on products imported from China last month and has threatened more.The move could affect hundreds of billions of dollars in trade and may worsen if the Republican follows through on his threats of even higher customs levies.A US-led push to squeeze China out of international supply chains for high-tech chips and other sensitive technology — spearheaded by the previous administration of Democrat Joe Biden — is also expected to ramp up.That effort has driven Beijing’s policy of technological self-reliance, part of a broader initiative by China’s leadership to develop “new quality productive forces” that it hopes can boost growth.Last May, Beijing poured more than $47 billion into the country’s largest-ever chip investment fund — the third phase of an effort that outpaced the first two phases combined.”Beijing is betting that a massive party-led push for research, innovation, commercialisation, manufacturing and digitalisation can create new economic growth drivers,” analysts Neil Thomas and Jing Qian at the Asia Society said in a note.China hopes it can “replace the real estate sector and generate productivity gains that help mitigate issues related to debt, demographics and dependence on the West”, they added.Analysts also said pressure from Trump could encourage Beijing to step up the kinds of support for the economy seen last year — interest rate cuts, easing local government debt pressure and expanding subsidy programmes for household goods.”We expect China to increase policy support in response to greater external shock from the US,” Wang Tao, chief China economist at UBS, told AFP.And more “will be rolled out later in the year… should there be additional significant tariffs or other external shocks, or should the property downturn turn worse”, she added.- Property crisis -Another key issue is weak domestic consumption.Demand has been a long-running drag on the world’s second-largest economy, fuelling a deflationary spiral that has kept prices stubbornly low.Analysts expect policymakers to broaden the scope of a consumer goods trade-in programme initiated last year that allows shoppers to exchange older home appliances and other items.That, said Louise Loo of Oxford Economics, “could have an immediate, albeit temporary, impact on retail spending”.But they warn much deeper issues are driving a crisis of confidence in the economy, which long enjoyed double-digit growth but has languished since the pandemic.The continued crisis in China’s vast property sector — once a key driver of growth but now beset with sprawling debt — has become emblematic of that malaise.Last month, new home prices in China’s most developed “first-tier” cities fell 3.4 percent year-on-year, according to the National Bureau of Statistics.The slide was even more pronounced in second-tier cities, where new home prices dropped five percent on-year in January, and in third-tier cities where prices fell six percent, the data showed.”Our prognosis of China’s problems continues to lie in housing,” Oxford Economics’ Loo said, pointing to the impact the crisis was having on everything from local government finances to consumer demand.”Overcoming these powerful negative feedback loops in the economy this year would be policymakers’ key task.”

China on Friday vowed to take “all necessary countermeasures” after US President Donald Trump said he would impose an additional 10 percent tariff on Chinese imports — a decision Beijing warned would “seriously impact dialogue”.Trump’s latest move will come into effect on Tuesday alongside sweeping 25 percent levies on Canadian and Mexican imports, intensifying a brewing trade war between the world’s two largest economies.The 10 percent tariff on Chinese imports will come on top of an existing levy of the same rate imposed by Trump on China earlier this month.Trump had announced — then halted — sweeping 25 percent levies on Canadian and Mexican imports this month over illegal immigration and deadly fentanyl, with Canadian energy to face a lower rate.But the month-long pause ends Tuesday.Following reporters’ questions on whether he planned to proceed on the tariffs next week, Trump wrote on social media Thursday that until the problem of fentanyl stops “or is seriously limited”, the proposed levies will happen as scheduled.”China will likewise be charged an additional 10 percent Tariff on that date,” he added, referring to March 4.In response to Trump’s allegations that Beijing is contributing to the fentanyl crisis in the United States, a spokesperson for China’s commerce ministry said Friday that Washington was “shifting the blame”.”China is one of the countries with the strictest and most thorough anti-narcotics policy in the world,” the statement read.”But the US side has always ignored these facts,” it said.”If the US side insists on going its own way, the Chinese side will take all necessary countermeasures to defend its legitimate rights and interests,” it said.The statement also said that the tariff hike “is not conducive to solving (the United States’) own problems”, adding that it would “increase the burden on American companies and consumers, and undermine the stability of the global industrial chain”.Shortly after the statement was published, China’s foreign ministry warned that the new tariffs would “seriously impact dialogue” between the two countries on narcotics control, accusing Washington of “blackmail”.”Pressure, coercion and threats are not the correct way to deal with China. Mutual respect is the basic premise,” foreign ministry spokesman Lin Jian said at a daily press conference.China’s leadership will convene next week to hammer out plans to shield its economy from Trump’s threats.Mexican President Claudia Sheinbaum on Thursday said she hoped to speak with Trump to avoid being hit by his threatened tariffs.A high-level Mexican delegation is in Washington in search of an agreement.And Canadian Prime Minister Justin Trudeau said officials are working around the clock to avert US levies but would have an “immediate” response if measures were imposed next week.Trudeau has repeatedly stressed that less than one percent of the fentanyl and undocumented migrants that enter the United States come through the Canadian border.Trump’s threats have sent shivers through major exporter countries. Asian markets were all well in the red early Friday, with Tokyo briefly shedding three percent.- Reciprocal tariffs -Besides levies over fentanyl, Trump added on his Truth Social platform that an April 2 date for so-called reciprocal tariffs “will remain in full force and effect”.These will be tailored to each US trading partner, with details to come after government agencies complete studies on trade issues which Trump has called for.In a letter this week by Chinese Commerce Minister Wang Wentao to newly confirmed US Trade Representative Jamieson Greer, Wang noted that Trump has called for many trade investigations “aimed at China” and urged both sides to resolve their differences via dialogue.Beijing has pushed back against US fentanyl concerns, saying Washington has to solve the issue itself rather than taking aim at other countries with levies.Rather than the drugs being supplied directly to the United States, a Congressional Research Service report noted last year that US-bound fentanyl appears to be made in Mexico using chemical precursors from China.While some precursors face international controls, others may be made and exported legally from countries like China.In early February, China’s foreign ministry warned that fresh tariffs could hurt counternarcotics cooperation.

Asian markets tracked losses across the world Friday as US President Donald Trump’s volley of tariff measures sparked fresh fears about a global trade war that could hammer struggling economies.Disappointing earnings from chip darling Nvidia added to the sense of unease on trading floors, with investors questioning their positions after China’s DeepSeek upended a blockbuster rally in the US tech sector.Economists are increasingly concerned for the world outlook owing to Trump’s insistence on hammering partners blamed for unfair practices, drug trafficking and immigration issues — and warning of levies on key sectors including auto, semiconductors and commodities.That has sent shivers through major exporter countries from the Americas to Europe to East Asia.After a relatively upbeat month on markets, Trump dealt a fresh blow this week, confirming that 25 percent tariffs on Mexico and Canada would go into effect on March 4, while China would face a further 10 percent levy.He had also warned the European Union that it could be hit with 25 percent duties.”Tariffs are back in the crosshairs, and a market that had reduced its sensitivity to recent tariff headlines has had to reconsider that reaction function,” said Chris Weston, of Pepperstone Group.Asian markets were on course to end a volatile week on a down note.Tokyo briefly shed three percent, while Shanghai, Sydney, Seoul, Singapore, Wellington, Manila and Jakarta were all well in the red.Hong Kong was off more than one percent, with high-flying tech firms also weighed by profit-taking at the end of a blockbuster February that has helped the Hang Seng Index to a three-year high.Market uncertainty has also dealt a blow to the crypto sphere, with bitcoin diving below $80,000 for the first time since November, well off the levels above $109,000 touched last month.The losses followed a painful day on Wall Street, where the Nasdaq dived more than three percent as US tech firms — led by the so-called Magnificent 7 — continue to suffer a pull-back following a long-running rally fuelled by investors’ voracious appetite for all things linked to AI.A number of weak economic readings recently have started to stoke concerns that the world’s top economy is slowing down, just as analysts warn that Trump’s plans to slash taxes, regulations and immigration will reignite inflation.”A macro storm is brewing as a barrage of high-stakes economic data collides with escalating trade tensions, putting markets on edge as February draws to a chaotic close,” said Stephen Innes at SPI Asset Management.”The AI darlings that led Wall Street’s charge over the past two years are suddenly looking vulnerable, with macro headwinds shifting sentiment from ‘unstoppable’ to deeply ‘unsettled’.”Nvidia’s post-earnings sell-off was a canary in the coal mine, signalling that even top-tier growth names are struggling to find footing in this environment.”And Saxo markets’ Charu Chanana added: “While the Magnificent 7 have dominated US markets, China’s tech landscape offers compelling alternatives, particularly as Beijing increases support for the sector. “With regulatory pressures easing and AI, cloud computing, and semiconductors driving growth, investors are looking at China’s version of big tech and beyond.”- Key figures around 0230 GMT -Tokyo – Nikkei 225: DOWN 2.8 percent at 37,182.09 (break)Hong Kong – Hang Seng Index: DOWN 1.5 percent at 23,364.28Shanghai – Composite: DOWN 0.5 percent at 3,370.52Euro/dollar: DOWN at $1.0384 from $1.0398 on ThursdayPound/dollar: DOWN at $1.2584 from $1.2600Dollar/yen: DOWN at 149.52 from 149.79 yenEuro/pound: DOWN at 82.51 pence from 82.52 pence West Texas Intermediate: DOWN 0.5 percent at $70.02 per barrelBrent North Sea Crude: DOWN 0.4 percent at $73.74 per barrelNew York – Dow: DOWN 0.5 percent at 43,239.50 (close)London – FTSE 100: UP 0.3 percent at 8,756.21 (close)

Trading in troubled Australian casino operator Star Entertainment was paused on Friday as the company sought to free up enough cash to keep afloat. Star said it was exploring “possible liquidity solutions” — including last-minute bailout offers — but conceded there was “material uncertainty” clouding its future. The Australian Securities Exchange said trading in Star had been “temporarily paused” just minutes before the stock market opened. The company last traded at Aus$0.12 a share (US$0.07) with a market capitalisation of Aus$344 million. The firm has previously been accused of not adequately policing criminal infiltration and doing little to vet the sources of money coming into the business. Watchdogs found that one patron — a Chinese real estate billionaire barred by the Australian government for being an agent of Chinese influence — had ploughed more than a billion dollars into Star over several years. Another high-rolling patron was allegedly involved in human trafficking. The group was temporarily delisted from the Australian Securities Exchange last year after failing to post its annual financial results.

Global stocks mostly fell Thursday after earnings from artificial intelligence chipmaking leader Nvidia failed to wow the market and US President Donald Trump launched fresh broadsides on trade.While Nvidia reported a staggering $22 billion in quarterly profits, shares finished down 8.5 percent, with investors seemingly wanting more from the company.”Investors have gotten used to having Nvidia blow the door off,” said Jack Ablin of Cresset Capital. “They did well but they didn’t blow the door off.”Ablin also cited remarks from Trump indicating that 25-percent tariffs on Mexico and Canada would go into effect on Tuesday.Major US indices finished decisively lower, with the broad-based S&P 500 losing 1.6 percent.After shooting to records earlier this month, US indices have struggled in recent sessions following a trove of lackluster economic data as Trump presses on with an assertive US trade policy and government job cuts.On Thursday, weekly jobless claims exceeded estimates, while pending home sales also disappointed.European bourses also had a tough session in the aftermath of Trump’s comments Wednesday that he would hit the European Union with 25-percent tariffs.”As concerns swirls about the latest tariff threats emanating from the White House, caution remains the name of the game amid a murky outlook for the global economy,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.The threat against Europe came after Trump went back on the offensive over trade, signing a memo last weekend calling for curbs on Chinese investments in industries including technology and critical infrastructure, healthcare and energy.In Asian trading, Hong Kong went above 24,000 points for the first time since 2022, thanks to another outstanding performance by Chinese tech giants.But traders soon took their cash off the table and the market ended in the red, scenes mirrored elsewhere in Asia. Thursday saw some big share-price movements among major companies.While the Tokyo exchange closed higher, 7-Eleven owner Seven & I tumbled 11 percent after the convenience store giant said its founding family had failed to put together a white-knight buyout.The firm rejected an offer last year worth nearly $40 billion from Canadian rival Alimentation Couche-Tard, which would have been the biggest foreign buyout of a Japanese firm.In London, engine maker Rolls-Royce surged 16 percent while advertising giant WPP slumped 15.8 percent as traders reacted to earnings updates from the pair.Online commerce giant eBay slumped 8.2 percent after the company’s cautious financial outlook added to concerns about its exposure to tariff actions.- Key figures around 2140 GMT -New York – Dow: DOWN 0.5 percent at 43,239.50 (close)New York – Dow: S&P 500: DOWN 1.6 percent at 5,861.57 (close)New York – Nasdaq Composite: DOWN 2.8 percent at 18,544.42 (close)London – FTSE 100: UP 0.3 at 8,756.21 (close)Paris – CAC 40: DOWN 0.5 percent at 8,102.52 (close)Frankfurt – DAX: DOWN 1.1 percent at 22,550.89 (close)Tokyo – Nikkei 225: UP 0.3 percent at 38,256.17 (close)Hong Kong – Hang Seng Index: DOWN 0.3 percent at 23,718.29 (close)Shanghai – Composite: UP 0.2 percent at 3,388.06 (close)Euro/dollar: DOWN at $1.0398 from $1.0485 on WednesdayPound/dollar: DOWN at $1.2600 from $1.2676Dollar/yen: UP at 149.79 from 149.10 yenEuro/pound: DOWN at 82.52 pence from 82.71 pence Brent North Sea Crude: UP 2.1 percent at $74.04 per barrelWest Texas Intermediate: UP 2.5 percent at $70.35 per barrelburs-jmb/aha

From tariffs to counter “unfair trade” to duties over illegal immigration and fentanyl smuggling, President Donald Trump has unleashed a volley of threats since taking office, sparking fears of widening trade tensions.Since January, Trump has unveiled and suspended levies on Canada and Mexico, and imposed additional tariffs on China that he plans to ramp up further.What are Trump’s plans, and where do we stand?- Feb 4: China tariffs take effect -On February 1, Washington unveiled a 25 percent tariff on Canada and Mexico imports, with a lower rate on Canadian energy resources.Chinese goods faced an additional 10 percent duty.Hours before those levies were due to take effect on February 4, Trump agreed to pause the tariffs on Canada and Mexico for a month.But the Chinese duties took effect, prompting Beijing’s retaliation.- March 4: Canada, Mexico, China -Trump’s month-long pause expires March 4, and he affirmed Thursday that the proposed tariffs on Canada and Mexico would “go into effect, as scheduled.”On top of that, he said China would be charged an additional 10 percent tariff on this day.He cited a lack of progress on the flow of drugs like fentanyl into the United States.China has pushed back on its alleged role in the deadly fentanyl supply chain, saying Beijing has cooperated with Washington and arguing that tariffs would not solve the drug problem.- March 12: Steel and aluminum -In February, Trump signed orders to impose 25 percent tariffs on US steel and aluminum imports from March 12, ramping up a long-promised trade war.The justification was to protect US steel and aluminum industries, on grounds that they have been “harmed by unfair trade practices and global excess capacity.”The European Union has vowed to retaliate with firm and proportionate countermeasures.- April 1: Trade policy updates -On the day of his inauguration, Trump released a presidential memo titled “America First Trade Policy,” calling for government agencies to study various trade issues.Most of these reports are due by April 1.They include an investigation on US trade deficits in goods and whether measures like a global supplemental tariff would be an appropriate remedy.- April 2: Reciprocal tariffs -Trump has also inked plans for sweeping “reciprocal tariffs” that could hit both allies and adversaries.He said Thursday on social media that an April 2 reciprocal tariff date “will remain in full force and effect.”The levies would be tailored to each US trading partner and consider the tariffs they impose on American goods, alongside taxes seen as discriminatory, such as value-added taxes, according to the White House.- April 2: Autos? -Trump has said that tariffs on automobiles, semiconductors, pharmaceuticals and lumber are upcoming, with a rate of around 25 percent.He added that an announcement could come as early as April 2.Trump has also said this week that tariffs on EU products would 25 percent, adding that the bloc has “taken advantage of us.”

US President Donald Trump said Thursday he would impose an additional 10 percent tariff on Chinese imports while moving ahead with levies on Canada and Mexico next week, citing “unacceptable” drug smuggling.Trump had announced — then halted — sweeping 25 percent levies on Canadian and Mexican imports this month over illegal immigration and deadly fentanyl, with Canadian energy to face a lower rate. But the month-long pause ends next Tuesday.Following reporters’ questions on whether he planned to proceed on the tariffs next week, Trump wrote on social media Thursday that until the problem of fentanyl stops “or is seriously limited,” the proposed levies will happen as scheduled.”China will likewise be charged an additional 10 percent Tariff on that date,” he added, referring to March 4.Earlier this month, Trump already imposed a sweeping 10 percent tariff hike on imports from China, prompting Beijing to retaliate.A US official confirmed to AFP that the new 10 percent levy adds to the existing one over fentanyl, saying that there has been “insufficient progress” on the drug front.The official added that Washington had to act against all three countries in order to tackle the fentanyl issue.On Thursday, Chinese Commerce Minister Wang Wentao expressed concerns over Washington’s earlier 10 percent tariff.”China firmly opposes this and has taken corresponding countermeasures, which was a necessary move to safeguard its own legitimate rights and interests,” Wang said in a letter to newly confirmed US Trade Representative (USTR) Jamieson Greer.Mexican President Claudia Sheinbaum on Thursday said she hoped to speak with Trump to avoid being hit by his threatened tariffs.A high-level Mexican delegation is in Washington in search of an agreement.And Canadian Prime Minister Justin Trudeau said officials are working around the clock to avert US levies but would have an “immediate” response if measures were imposed next week.Trudeau has repeatedly stressed that less than one percent of the fentanyl and undocumented migrants that enter the United States come through the Canadian border.The head of a Canadian business council has warned that Trump’s threats on Canadian imports have fundamentally altered trade ties between the neighbors.- Reciprocal tariffs -Besides levies over fentanyl, Trump added on Truth Social that an April 2 date for so-called reciprocal tariffs “will remain in full force and effect.”These will be tailored to each US trading partner, with details to come after government agencies complete studies that Trump has called for on trade issues.”How you treat us is how you get treated,” said Commerce Secretary Howard Lutnick in a Fox News interview Wednesday about the reciprocal levies.In his letter to Greer, Wang noted that Trump has called for many trade investigations “aimed at China” and urged both sides to resolve their differences via dialogue.Beijing has pushed back against US fentanyl concerns, saying Washington has to solve the issue itself rather than taking aim at other countries with levies.Rather than the drugs being supplied directly to the United States, a Congressional Research Service report noted last year that US-bound fentanyl appears to be made in Mexico using chemical precursors from China.While some precursors face international controls, others may be made and exported legally from countries like China.In early February, China’s foreign ministry warned that fresh tariffs could hurt counternarcotics cooperation.

European stock markets struggled Thursday after US President Donald Trump’s latest tariffs salvo, this time against the European Union, while earnings from chip titan Nvidia failed to impress investors despite another record performance.Only London stocks managed to stay out of the red after Trump warned Wednesday that he would hit the European Union with 25 percent tariffs.”As concerns swirls about the latest tariff threats emanating from the White House, caution remains the name of the game amid a murky outlook for the global economy,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.The threat against Europe came after Trump went back on the offensive over trade, signing a memo last weekend calling for curbs on Chinese investments in industries including technology and critical infrastructure, healthcare and energy.Meanwhile, Trump said Thursday that he would impose an additional 10 percent tariff on Chinese imports while moving ahead with levies on Canada and Mexico next week.That dented gains on Wall Street, which was mixed in late morning trading.”US stocks suffered a fresh wobble today thanks to yet more tariff news,” said Chris Beauchamp, chief market analyst at online trading platform IG.The tech-heavy Nasdaq was lower as profit-taking pulled Nvidia’s shares down by more than three percent.The generative AI chipmaker posted record revenues after the close of trading on Wednesday and its guidance for this quarter beat expectations.The firm is seen as a bellwether for the artificial intelligence revolution, and while there had been worries that the emergence of low-cost generative AI chatbot from Chinese firm DeepSeek could darken the outlook for the sector, Nvidia reported strong demand for its latest chip.”DeepSeek’s arrival signifies that China is a force to be reckoned with when it comes to AI capabilities, and this is also knocking sentiment for US tech stocks, it could also limit the upside for Nvidia’s stock price after this solid earnings report,” said XTB Research Director Kathleen Brooks.US tech stocks helped push Wall Street to record highs at the end of last year, but have struggled so far in 2025.In Asian trading, Hong Kong went above 24,000 points for the first time since 2022, thanks to another outstanding performance by Chinese tech giants.But traders soon took their cash off the table and the market ended in the red, scenes mirrored elsewhere in Asia. Thursday saw some big share-price movements among major companies.While the Tokyo exchange closed higher, 7-Eleven owner Seven & I tumbled 11 percent after the convenience store giant said its founding family had failed to put together a white-knight buyout.The firm rejected an offer last year worth nearly $40 billion from Canadian rival Alimentation Couche-Tard, which would have been the biggest foreign buyout of a Japanese firm.In London, engine maker Rolls-Royce surged 16 percent while advertising giant WPP slumped 15.8 percent as traders reacted to earnings updates from the pair.- Key figures around 1630 GMT -New York – Dow: UP 0.7 percent at 43,751.43 pointsNew York – Dow: S&P 500: FLAT at 5,955.52New York – Nasdaq Composite: DOWN 0.6 percent at 18,964.03 London – FTSE 100: UP 0.3 at 8,756.21 (close)Paris – CAC 40: DOWN 0.5 percent at 8,102.52 (close)Frankfurt – DAX: DOWN 1.1 percent at 22,550.89 (close)Tokyo – Nikkei 225: UP 0.3 percent at 38,256.17 (close)Hong Kong – Hang Seng Index: DOWN 0.3 percent at 23,718.29 (close)Shanghai – Composite: UP 0.2 percent at 3,388.06 (close)Euro/dollar: DOWN at $1.0406 from $1.0480 on WednesdayPound/dollar: DOWN at $1.2622 from $1.2672Dollar/yen: UP at 149.97 from 149.13 yenEuro/pound: DOWN at 82.47 pence from 82.70 pence Brent North Sea Crude: UP 1.8 percent at $73.38 per barrelWest Texas Intermediate: UP 2.1 percent at $70.11 per barrelburs-rl/gv

An Audi factory in Brussels billed as the “cradle” of the German carmaker’s electric drive is shutting down production for good on Friday, the latest sign of the woes afflicting Europe’s auto industry.The plant’s closure, with the loss of 3,000 jobs, comes days before EU chief Ursula von der Leyen is set to present a much-touted action plan to help the auto industry through “the deep and disruptive transition ahead”.After rising by nearly 10 percent in 2023, global car sales slowed sharply last year, with new registrations rising just 1.7 percent worldwide and declining in the European powerhouses France and Germany.In terms of electric vehicle (EV) innovation, an Allianz Trade report warned this month that European manufacturers had allowed themselves to be outpaced by US giant Tesla and Chinese rivals BYD and Geely, with European cars too expensive as a result.Audi, a subsidiary of German auto giant Volkswagen, gave several factors for closing the Brussels plant, the largest private employer in the Belgian capital.It had switched to producing EVs in 2018 after 70 years of making combustion engine models.But the company said a global fall in demand for high-end electric sport utility vehicles (SUVs) had tanked demand for its Q8 e-tron, to which the site was exclusively dedicated.It also cited long-running structural issues at the former Volkswagen factory, saying it suffered from high logistics and production costs.Workers at the site launched a prolonged strike to try to prevent the closure, with some blaming Audi for being too slow to make the pivot to electric, and then for focusing on a prohibitively expensive model.”People are being pushed to buy electric, but the infrastructure is not there yet,” said Jan Baetens of the CSC union.The European Union has set a date of 2035 for phasing out new sales of combustion engine vehicles, and wants EVs to account for a quarter of new registrations this year — up from 15 percent as of January.But sales have struggled to take off, with European buyers slow to warm to EVs and their higher upfront costs.- ‘Demand issue’ -“We have a demand issue at the moment,” said Sigrid de Vries, director general of the European Automobile Manufacturers’ Association (ACEA).She said it was “by any standards remarkable” that Europe had reached a 15 percent market share in less than five years, “but it’s not enough”.”We have vehicles readily available to enter the market,” she said, “but we are facing a stagnating demand.”Worldwide last year, Audi delivered more than 164,000 fully electric models, down eight percent on the previous year.In China, which accounted for around 40 percent of electric and non-electric global sales, deliveries were down 11 percent.In Brussels, Audi’s production lines will come to a final halt on Friday, though several hundred people will remain on site for a few months to clean and dismantle machinery or tie up administrative loose ends.Dozens of workers were in and out of the plant in the days ahead, to empty their lockers and say goodbye. “It was satisfying work — a shame it is coming to an end,” said Florin Tautu, an engineer who arrived from Romania in 2011 and was tasked with adapting the factory’s infrastructure to new production needs.Another manager, who asked not to be named, said he was hopeful for the future, “But I feel bad for people who still have a mortgage to pay off, or children in college.”Audi’s management says dedicated teams have been created within the region’s job centres to help the plant’s workers find new work, with a job fair advertising around 4,000 positions taking place in April.

Stock markets struggled Thursday after US President Donald Trump’s latest tariffs salvo, this time against the European Union, while earnings from chip titan Nvidia failed to impress despite another record performance.Hong Kong went above 24,000 points for the first time since 2022, thanks to another outstanding performance by Chinese tech giants.But traders soon took their cash off the table and the market ended in the red, scenes mirrored elsewhere in Asia. Europe was a similar story awaiting Wall Street’s reopening.”As concerns swirls about the latest tariff threats emanating from the White House… caution remains the name of the game amid a murky outlook for the global economy,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.Trump warned Wednesday that he would hit the European Union with 25 percent tariffs.However, he caused some confusion over the timing and extent of other measures announced against Canada and Mexico, with analysts saying there was still some debate on whether he would delay implementation or water down his plans.The threat against Europe came after Trump went back on the offensive over trade and signed a memo last weekend calling for curbs on Chinese investments in industries including technology and critical infrastructure, healthcare and energy.Thursday saw some big share price movements among major companies.While the Tokyo exchange closed higher, 7-Eleven owner Seven & i tumbled 11 percent after the convenience store giant said its founding family had failed to put together a white-knight buyout.The firm rejected an offer last year worth nearly $40 billion from Canadian rival Alimentation Couche-Tard, which would have been the biggest foreign buyout of a Japanese firm.In London, engine maker Rolls-Royce surged 19 percent while advertising giant WPP slumped 15 percent as traders reacted to earnings updates from the pair.There was no spark from earnings at Nvidia, seen as a bellwether for the artificial intelligence revolution, despite the firm reporting record revenue for the fourth quarter.- Key figures around 1100 GMT -London – FTSE 100: UP 0.2 percent at 8,752.49 pointsParis – CAC 40: DOWN 0.2 percent at 8,124.49Frankfurt – DAX: DOWN 0.8 percent at 22,611.12 Tokyo – Nikkei 225: UP 0.3 percent at 38,256.17 (close)Hong Kong – Hang Seng Index: DOWN 0.3 percent at 23,718.29 (close)Shanghai – Composite: UP 0.2 percent at 3,388.06 (close)New York – Dow: DOWN 0.4 percent at 43,433.12 (close)Euro/dollar: UP at $1.0485 from $1.0480 on WednesdayPound/dollar: UP at $1.2685 from $1.2672Dollar/yen: UP at 149.80 from 149.13 yenEuro/pound: DOWN at 82.66 pence from 82.70 pence Brent North Sea Crude: UP 0.9 percent at $73.20 per barrelWest Texas Intermediate: UP 0.9 percent at $69.24 per barrel