>Inflation eased to 4-year low in April as Trump's tariffs took effect, CPI report shows
archive.ph/AjTDJ
<Inflation eased to a four-year low in April as the nascent impact of President Donald Trump’s sweeping tariffs were offset by their cost-dampening effects in a slowing economy.
<Overall consumer prices increased 2.3% from a year earlier, down from 2.4% rise the previous month, according to the Labor Department’s consumer price index, a measure of average changes in goods and services costs.
<That’s the lowest annual increase since February 2021 but still leaves inflation moderately above the Federal Reserve’s 2% goal.
<On a monthly basis, costs rose 0.2% after dipping 0.1% in March.
<Prices for groceries, including eggs, used cars and airfares all fell sharply, while medical services and auto insurance and repairs continued to drift higher.
>Moratorium between China and the US ends trade war but fails to address underlying issues
archive.ph/OU9Nr
<Trump has suggested that he might soon hold talks with his Chinese counterpart, Xi Jinping. After a phone call on January 17, three days before the Republican's inauguration, China avoided organizing another exchange between the two leaders. Beijing did not want to give Trump satisfaction and feared an improvised encounter with an uncontrolled message. But now, Xi would benefit from taking a call from the American president to continue easing tensions and fostering friendship.
<Fundamentally, the issues to be resolved are considerable, even excluding the geostrategic conflict over Taiwan. The two countries must agree on the level of tariffs; on voluntary Chinese purchases of American products, particularly agricultural ones, to reduce the bilateral trade deficit; on China's subsidies to its industry; on American access to the Chinese market; and on currency manipulation.
<In addition to these major topics, security considerations come into play. Americans no longer want to depend on Chinese rare earths, but Beijing also has demands: Chinese companies are currently barred from acquiring American ones. Washington is divided on China's access to strategic technologies, particularly microprocessors.
<One camp supports strict restrictions on sensitive products – "small yard, high fence" approach, as Jack Sullivan, Joe Biden's national security adviser, said in October 2022. While another camp, which includes Trump, wants to liberalize microprocessor exports. Added to this is the highly symbolic battle over TikTok, which Trump does not want to end but which must, according to a law passed by Congress, come under American ownership.
>Trump’s tariffs: Average American household faces $2,200 price hike, report says
archive.ph/cUm3o
<According to new research published by the Budget Lab at Yale University, President Donald Trump's tariffs will raise prices by almost 2% in the short run, costing the typical middle-class household more than $2,200 per year.
<That estimate is down from the group's mid-April estimate of around $3,400 a year.
<The updated estimates come after the Trump administration announced it would lower tariffs on goods imported from China from 145% to 30% for 90 days. The estimates also reflect a new trade deal the United States reached with the United Kingdom, which will most heavily impact the import of British automobiles and parts.
>Lula and Xi to ink new deals as Brazil shrugs off Trump’s trade threats
archive.ph/E4el7
<Brazil’s Luiz Inácio Lula da Silva insists he doesn’t want to pick between the US and China as his two largest trading partners wage a trade war. But it’s increasingly clear which side he’d choose if forced.
<Lula and China’s Xi Jinping are set to ink new trade-related agreements in Beijing on Tuesday, with eyes on opening new markets for Brazilian agricultural goods and expanding Chinese investments into infrastructure projects meant to speed up the delivery of those products across the Pacific.
>China Reverses Ban On Boeing Jet Deliveries After Trade Breakthrough With US
archive.ph/i8zEs
<China lifted a month-long ban on Boeing jet deliveries for all domestic carriers just one day after a breakthrough in U.S.-China trade talks, Bloomberg reports, citing people familiar with the matter.
<Chinese officials instructed domestic carriers and government agencies at the start of the week that deliveries of US-made jets were allowed to resume. This decision coincides with a 90-day tariff truce, during which the U.S. slashed tariffs on Chinese imports from 145% to 30%, and China cut import duties on US goods from 125% to 10%.
>China offers Latin America and the Caribbean billions in bid to rival US influence
archive.ph/JOy4v
<President Xi Jinping vowed on Tuesday to boost China's footprint in Latin America and the Caribbean with a new $9 billion credit line and fresh infrastructure investment, although Brazil warned the region not to become overly reliant on foreign funding.
<The world's second-largest economy will disburse 66 billion yuan ($9.18 billion) in credit to the Community of Latin American and Caribbean States' (CELAC) members, Xi told delegates from around 30 nations gathered in Beijing for the three-yearly China-CELAC Forum Ministerial Meeting.
<"China and the countries of Latin America and the Caribbean are important members of the Global South. Independence is our glorious tradition, development and revitalisation our natural right, and fairness and justice our common pursuit," Xi said.
>Japan Govt Fears U.S.-China Talks May Sideline Japan-U.S. Negotiations; Agreement Welcomed, Details to Be Analyzed
archive.ph/ItaZs
<Japan and the United States are aiming for a June agreement through intensive ministerial talks to be held as early as this month. But there are concerns that Washington will prioritize negotiations with Beijing, sidelining Tokyo.
<“We’re analyzing the details [of the U.S.-China deal],” Prime Minister Shigeru Ishiba told reporters at the Prime Minister’s Office on Monday.
<The easing of the U.S.-China clash has been welcomed within the government, as there had been concerns that the intensifying trade friction between the United States and China would have a negative impact on the global economy.
<Since many Japanese companies export to the United States via China, a senior Japanese Foreign Ministry official had said, “It would also be bad for Japanese companies if the United States and China impose high tariffs on each other without grounds,” expressing hope for the end of the retaliatory tariff battle between the two countries.
<However, the impact of the U.S.-China agreement on Japan-U.S. negotiations is expected to be limited. According to a senior government official, the United States has stated that the U.S.-China agreement will not set a precedent for other countries.
<One government official familiar with the issue pointed out, “China, which has been fighting with the U.S. through raising tariffs on each other, and Japan, which is aiming for a win-win agreement, are in different positions.”
<China is seen as the biggest target of the U.S. administration’s tariff measures. The senior government official voiced concern that, if the U.S.-China talks make progress, “The U.S. side may place Japan lower in its order of priorities.”
>Trump focuses on economic diplomacy on his Middle East tour[Expand Post]
archive.ph/fznKo
<Make deals, not war. This phrase encapsulates the ambition Donald Trump had for his first overseas tour since his inauguration in January.
<The United States president, who dreams that he is both a peacemaker and an investment magnet, boarded Air Force One on Monday, May 12, heading for the Middle East. He is due to visit Saudi Arabia, Qatar and the United Arab Emirates (UAE). Amid a striking blend of economic promises, security issues and family interests, Trump will speak a language he knows well: that of transactions. Each of these countries has pledged to invest hundreds of billions of dollars in the US – substantial figures, which will need to be verified as real over the years to come.
>Chinese exporters to US tread warily as tariff uncertainties linger
archive.ph/zVR95
<While Ms Deng celebrated the reprieve with bubbles, she worries about what might happen after 90 days, and has sent her 20-year-old daughter to the US to help scout for a warehouse there to mitigate risks and guard against any further fallout from tariffs.
<“My biggest worry is Mr Trump will forget tomorrow what he said today,” said Ms Deng, manager of Lucky Bird Trade, based in the export manufacturing hub of Yiwu, the world’s largest wholesale hub for small manufactured items, referring to US President Donald Trump.
<Chinese factories are heavily dependent on the US market, but manufacturers in China have buckled up, uncertain on how to navigate an increasingly unpredictable trade war that has threatened to upend global supply chains – and the uncertainty prevails despite the temporary truce.
>U.S.-China Trade Deal Spurs Sharp Rises in World Markets; Dow Jones Recovers to Level Just Before Tariffs Announcement
archive.ph/Fp8OO
<The Dow Jones Industrial Average of the New York Stock Exchange surged 1,160 points Monday, recovering to the level just before U.S. President Donald Trump’s announcement that tariffs would be imposed.
<An optimistic view that U.S.-China trade friction would ease clearly pushed stocks up. Washington and Beijing reached a deal in Geneva on Monday for a 90-day pause and for reciprocal tariffs to be reduced by 115 percentage points.
>Asia Pacific trade envoys to discuss multilateral cooperation in tariff era
archive.ph/yRrGi
<Asia-Pacific trade envoys will gather this week in South Korea for discussions on multilateral cooperation, with talks taking place at a time when countries are scrambling to respond to U.S. President Donald Trump's sweeping tariffs.
<Trade representatives of 21 member economies of the Asia-Pacific Economic Cooperation grouping will attend two days of meetings starting Thursday in South Korea's resort island of Jeju, as part of a second round of senior officials' meetings ahead of an annual APEC leaders summit later this year.
<The APEC trade envoys gathering comes amid growing protectionism triggered by Trump's tariffs, which have targeted more than half of the bloc. APEC accounts for about half of global trade and 60% of global GDP.
>China says fentanyl issue is responsibility of the US
archive.ph/SYJXP
<US Trade Representative Jamieson Greer said on May 12 that “both the Chinese and United States agreed to work constructively together on fentanyl and there is a positive path forward there as well”.
<Asked May 13 about prospects for talks on the issue, Beijing reiterated its position that it is not responsible for the opioid addiction epidemic in the United States.
<“Fentanyl is the United States’ issue, it is not China’s issue,” foreign ministry spokesman Lin Jian said.
<“The US has ignored China’s goodwill and imposed unreasonable fentanyl tariffs on China, seriously disturbing cooperation between China and the US in the area of drug control and seriously harming China’s interests,” he said.
<“If the US really wants to cooperate with China, it should stop smearing and shifting blame onto China and engage in dialogue in an equal, respectful and mutually beneficial way,” he said.