
EU to unveil more countermeasures against US tariffs following its steel and metals action plan
The European Union will unveil more details of its countermeasures against United States tariffs on Thursday (May 8). The bloc had earlier released an action plan that aims to strengthen European steelmakers in the face of 25 per cent duties on steel and aluminium imposed by the US. William Denselow reports on what this means for the EU steel industry, which is already reeling from intense competition and rising operational costs.
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CNA
36 minutes ago
- CNA
China says ready to 'strengthen cooperation' with US in future talks: Report
BEIJING: China's vice premier and top trade negotiator stressed the need for Beijing and Washington to strengthen cooperation and reduce "misunderstandings" in future dialogue, according to state media on Wednesday (Jun 11) following trade talks in London. After months of global turmoil as the world's two largest economies squared off over reciprocal tariffs, the two sides "made new progress in resolving each other's economic and trade concerns", state broadcaster CCTV reported. The London negotiations follow talks in Geneva last month, which saw a temporary agreement to lower tariffs. "As a next step, the two sides should ... continuously enhance consensus, reduce misunderstandings and strengthen cooperation," Vice Premier He Lifeng said, according to state broadcaster CCTV. Top officials from the United States and China said on Tuesday that they had agreed on a "framework" to move forward on trade, following two days of high-level talks in the British capital to resolve tensions. US Commerce Secretary Howard Lutnick expressed optimism after a full day of negotiations that concerns surrounding rare earth minerals and magnets "will be resolved" eventually, as the deal is implemented. But this framework will first need to be approved by leaders in Washington and Beijing, officials said, at the end of meetings at London's historic Lancaster House. In its readout of the talks released on Wednesday, Beijing's state media said the Chinese side "reiterated that the two sides should meet each other halfway, keep promises and fulfil actions". "The two sides had candid and in-depth dialogue (and) exchanged in-depth views on economic and trade issues of mutual concern," it said. They "reached a consensus in principle on the framework of measures to implement the important consensus reached by the two heads of state in their Jun 5 phone call", the broadcaster added, referring to recent talks between leaders Xi Jinping and Donald Trump. This time, China's exports of rare earth minerals, used in a range of things including smartphones, electric vehicle batteries and green technology, were a key issue on the agenda, with Washington accusing Beijing of dragging its feet on approving exports.


CNA
an hour ago
- CNA
Can the US-China agreement to restore trade truce ease long-standing tensions?
Trade relations between the United States and China remain fluid, even as the world's two biggest economies have agreed on a framework aimed at reducing friction and reviving the flow of sensitive goods, said observers. Top officials from Washington and Beijing on Tuesday (Jun 10) agreed on the preliminary plan after two days of intense discussions in London. The framework builds upon the groundwork that the superpowers laid in Geneva last month to ease tariffs they had taken against each other's economies. But further details, including plans for a next round of talks, remain sparse. 'It's important to realise that this remains a very fluid, a very contentious relationship,' said Alex Capri, a senior lecturer at the National University of Singapore Business School. 'In the past, historically, negotiating a proper free trade agreement literally took years because there are so many moving parts. There are so many elements … and that takes a lot of time.' Capri expressed skepticism about the efficacy of short-term negotiations, saying these might not lead to long-lasting agreements. 'I think we'll continue to see more transactionalism, and we'll probably see more and more of these types of shorter, one-on-one type of meetings that remain a work in progress,' he told CNA's Asia First. But observers said they are cautiously optimistic about the positive shift in tone between the two global superpowers. 'It's unclear what has been agreed to besides a sort of pathway to a framework to implement a concept of a plan. So it's early days,' said trade and economic policy expert Deborah Elms. 'But I suppose that the good news is, both sides do seem to see that escalation is not in their interest, and they agree that negotiations or discussions are important pathways to get to some kind of resolution.' GROWING WEAPONISATION OF RESOURCES However, analysts highlighted how countries have been weaponising their strategic commodities to gain an edge. China's dominance in rare earth minerals and America's lead in semiconductor innovations have become geopolitical bargaining chips. 'That is something that's here to stay,' said Capri. 'I think it's going to be more and more the new normal to see a linkage between tariff discussions and discussions about strategic supply chains such as rare earth and semiconductors.' He added: 'We're looking at a very transactional world, certainly under the Trump 2.0 administration where tariffs, export controls, sanctions, all of these things are going to be lumped together now in trade-related and commercial discussions.' Although the initial focus was tariff reduction, experts cautioned that these strategic issues could derail momentum. 'Both sides have identified that they have some cards to play in this dispute, and both have shown a willingness to use those if the negotiations start to unravel,' said Elms, who is head of trade policy at philanthropic organisation Hinrich Foundation. 'The tariff discussion is only a small piece of what is now on the agenda,' she told CNA's Asia Now. 'There's a whole lot of things that you could put on the negotiating cards for both sides. All of them are difficult.' COMPLEX NEGOTIATION CHALLENGES The high-stakes issues require compromise from both countries, Elms stressed. 'There are lots of things that could go horribly wrong in these discussions, unless they keep to the sort of bedrock principle that we do not want to have an escalation of tension going forward.' Despite the complexity of factors now on the negotiation table, she said she believes the concerted effort on both sides in reaching a deal is encouraging. 'I think talking is always better than not talking, but the fact that it's proving difficult to get clear outcomes is a worry.' On Tuesday, US Commerce Secretary Howard Lutnick said the agreement reached in London would remove some of the recent US export restrictions. In a separate briefing, China's Vice Commerce Minister Li Chenggang noted that the framework would be taken back to US and Chinese leaders for review. 'The fact that both sides have to fly back to present whatever was discussed in person to their leaders tells you something about the negotiating leverage that the teams had on the ground,' said Elms. 'In other words, they weren't authorised ahead of time to accept an agreement. I think that it shows you how complicated these talks will ultimately be.' IMPORTANCE OF STRATEGIC ALLIANCES Observers warned that countries lacking strategic resources may find themselves increasingly sidelined in global trade discussions. 'Unfortunately, for the middle-tier countries that don't have that same kind of bargaining power … those countries are going to have less choice,' said Capri. 'They're going to be pushed into positions where they're not going to be able to leverage a lot of things like the bigger countries when it comes to negotiating a trade deal, whether it's over tariffs or whether it's over access to supply chains.' He highlighted the importance of strategic alliances, encouraging smaller countries to join minilateral agreements to gain negotiating leverage. 'What's in the best interest of middle-tier countries is to build as many relationships as possible, to forge as many minilateral agreements,' said Capri. 'Smaller countries are going to be looking to position themselves and connect themselves with as many opportunities as possible.' Meanwhile, some countries are racing to strike a deal with the US before President Donald Trump's 90-day pause on his sweeping tariffs expires on Jul 9. Without agreements in place, countries may once again face the duties temporarily imposed on Apr 9. 'In any case, these are short deadlines for very complicated negotiations with an awful lot of trading partners,' said Elms. 'Ultimately, the decision maker is Donald Trump himself, and his capacity to manage all of these decisions is also time-limited. He only has so many hours in a day in which he could actually get into the details or even sign off on an agreed upon commitment.'


CNA
2 hours ago
- CNA
Man City sign Dutch midfielder Reijnders ahead of Club World Cup
Manchester City confirmed the signing of midfielder Tijjani Reijnders from AC Milan on a five-year contract on Wednesday and said the Netherlands international will be available for this month's Club World Cup. Financial details were not released but a City team source has put the transfer fee at 55 million euros ($62.85 million). "City are one of the biggest teams in the world, with the best coach, world-class players and outstanding facilities. Under Pep Guardiola, City have won so many titles, and I want to help keep that going with a lot more success in the coming years," Reijnders said in a statement. "It is also a dream come true to play in the Premier League. This league has seen many of the best Dutch players perform through the years and it's an inspiration to follow in their footsteps. " The 26-year-old, who has been capped 23 times, joined Milan in 2023 on a five-year contract before extending it until 2030 in March. He made 104 appearances for the club in all competitions, winning the Italian Super Cup and was named Serie A's best midfielder last season. "He arrives here with extensive top-level experience in Europe both at club level as well as on the international stage with the Netherlands," City's Director of Football Hugo Viana said. Reijnders is City's fourth addition of the transfer window after left back Rayan Ait-Nouri, winger Rayan Cherki and goalkeeper Marcus Bettinelli. The expanded 32-team Club World Cup runs from June 14 to July 13 in the United States with $1 billion in prize money at stake. ($1 = 0.8751 euros)