Connect with us

International

Trump hints at softening China tariffs and says no plan to sack Fed boss

Published

on

510 Views

US President Donald Trump has appeared to soften his recent comments on China and the head of the US Federal Reserve after recent clashes as he pursues his economic agenda.

He said he has “no intention of firing” Jerome Powell after repeatedly criticising the head of the central bank, but he added that he would like Powell to be “a little more active” on cutting interest rates.

Speaking in the Oval Office on Tuesday, Trump also said he was optimistic about improving trade relations with China.

He said the level of tariffs – or import taxes – that he had imposed on Chinese imports would “come down substantially, but it won’t be zero”.

The president’s tariffs are an effort to encourage factories and jobs to return to the US. This is a pillar of his economic agenda – as is a cut in interest rates, aimed at reducing the cost of borrowing for Americans.

Trump has ratcheted the rate on Chinese goods up to 145% – sparking reciprocal measures from Beijing and warnings from economists about the global impact of a trade war.

In his comments to reporters on Tuesday, Trump said he would be “very nice” in negotiations with Beijing – in the hope of securing a trade deal.

Earlier, US Treasury Secretary Scott Bessent reportedly said he expected a de-escalation of the trade war, which he said was unsustainable. Responding to comments from China, he said the current situation was “not a joke”.

The trade war has led to turbulence in financial markets around the world – to which Trump’s comments on Powell have also contributed.

The Fed has not cut rates so far this year, after lowering them by a percentage point late last year, a stance Trump has heavily criticised.

Last week, the president intensified his attacks on the Fed chief, calling him “a major loser”.

The comments sparked a selloff of stocks, bonds and the US dollar – though markets have since been recovering from those losses.

National Economic Council Director Kevin Hassett said on Friday that Trump was looking into whether it would be possible to sack Powell – who he first nominated to lead the central bank in 2017.

Powell was then renewed in 2021 by Joe Biden.It is unclear whether Trump has the authority to fire the Fed chair. No other US president has tried to do so.

Most major Asian stock markets were higher on Wednesday as investors appeared to welcome the latest remarks.

Japan’s Nikkei 225 index rose about 1.9%, the Hang Seng in Hong Kong climbed by around 2.2%, while mainland China’s Shanghai Composite was down less than 0.1%.

That came after US shares made gains on Tuesday, with the S&P 500 ending Tuesday’s session up 2.5% and the Nasdaq rose 2.7%.

US futures were also trading higher overnight. Futures markets give an indication of how financial markets will perform when they open for trading.

Investors feared that pressure on Powell to lower interest rates could cause prices to rise at a time when trade tariffs are already seen boosting inflation.

Trade tensions between the world’s biggest economies, as well as US tariffs on other countries around the world, have triggered uncertainty about the global economy. Those concerns triggered turmoil in financial markets in recent weeks.

On Tuesday, the forecast for US economic growth for this year was given the biggest downgrade among advanced economies by the International Monetary Fund (IMF) due to uncertainty caused by tariffs.

The sharp increase in tariffs and uncertainty will lead to a “significant slowdown” in global growth, the Fund predicted.

Trump has imposed taxes of up to 145% on imports from China. Other countries are now facing a blanket US tariff of 10% until July.

His administration said last week that when the new tariffs are added on to existing ones, the levies on some Chinese goods could reach 245%.

China has hit back with a 125% tax on products from the US and vowed to “fight to the end”.

The Chinese government has not yet officially responded to the latest statements from the Trump administration.

However, an article in the state-controlled Global Times on Wednesday quoted commentators who said the remarks showed that the US is beginning to realise the tariffs do more harm than good to America’s economy.

BBC

International

UN Rights Chief Calls for Independent Probes into Deadly Airstrikes in Nigeria and Chad

Published

on

46 Views

The United Nations High Commissioner for Human Rights, Volker Türk, has urged Nigerian and Chadian authorities to launch prompt, thorough, independent, and impartial investigations into two recent airstrikes that killed dozens of civilians.

In a statement issued Wednesday, Türk expressed concern over reports that Nigerian airstrikes on a market killed at least 100 civilians, while separate Chadian airstrikes in the Lake Chad region left dozens of Nigerian fishermen dead or missing.

“It is crucial that both Nigerian and Chadian authorities conduct prompt, thorough, independent and impartial investigations into these disturbing incidents and ensure that those responsible for any violations are held to account, in accordance with international standards,” Türk said.

The incidents highlight the ongoing risks to civilians in the Lake Chad Basin amid intensified military operations against Islamist militants, including factions linked to Boko Haram and ISWAP.

In one case, Nigerian military jets reportedly struck a market in Jilli village, Yobe State, an area allegedly used by insurgents. Local reports and rights groups indicated heavy civilian casualties, prompting Nigeria to order its own investigation while defending the operation as targeting militant strongholds.

Separately, Chadian forces carried out retaliatory airstrikes on Boko Haram positions in the Lake Chad region. Fishermen’s leaders reported that more than 40 Nigerian fishermen were feared dead — some killed directly in the strikes and others drowning while fleeing in overloaded boats. No official casualty figures have been confirmed by authorities in either country.

The UN rights chief’s call underscores growing international pressure for accountability in counter-terrorism operations that have increasingly impacted civilian populations in the volatile region.

Both Nigeria and Chad face persistent security challenges from militant groups operating across borders, with operations often conducted in remote areas where distinguishing between combatants and civilians remains difficult.

Further details on the investigations and any accountability measures are expected in the coming weeks.

Continue Reading

International

Americans lament soaring inflation driven by U.S.-Israeli war with Iran

“Prices are going up everywhere you look and families everywhere are struggling to keep up,” said Janelle Jones, a visiting senior fellow at the Century Foundation.

Published

on

By

49 Views

May 12 (Reuters) – U.S. consumer inflation increased further in April, with the annual rate posting its largest gain in three years, heightening political risks for President Donald Trump and his Republican party ahead of November’s midterm elections.

The back-to-back rises in the Consumer Price Index reported by the Labor Department on Tuesday, reflected strong gains in the costs of energy products amid the U.S.-Israeli war with Iran. ‌

Food prices surged last month and inflation also spilled over to the services sector, with higher rental costs and airfares.

Trump won re-election in 2024 in large part because of his promise to reduce inflation, but Americans have soured on his handling of the economy and many blame him for the pain at the pump.

Rising inflation outpaced wage gains for the first time in three years, and underscored the financial strain on households.

With no end in sight to the conflict, economists warned prices would continue to push higher and broaden in the months ahead.

Trump on Monday proposed reducing the 18.4-cent federal gasoline tax to lower prices at the pump.

“Prices are going up everywhere you look and families everywhere are struggling to keep up,” said Janelle Jones, a visiting senior fellow at the Century Foundation.

“Measures like suspending the gas tax will provide short-term relief, but it’s robbing Peter to pay Paul. What families really need is an ⁠end to this war and leaders that are committed to ending the affordability crisis.”

The CPI increased 0.6% last month after surging 0.9% in March, the Labor Department’s Bureau of Labor Statistics said.

Economists polled by Reuters had forecast the CPI rising 0.6%. Estimates ranged from a 0.4% gain to a 0.9% increase.

The moderation after posting the largest increase since June 2022 was mechanical. Oil prices shot above $100 a barrel in March following strikes against Iran, before pulling back to still-high levels after a ceasefire in early April.

While the conflict’s impact was immediately reflected in more expensive gasoline, diesel and jet fuel, economists said the second-round effects were around the corner, including for goods trucked by road. Shipping disruptions in the Strait of Hormuz are straining supply chains.

A 3.8% increase in energy prices accounted for more than 40% of the rise in the CPI last month.

That followed a 10.9% jump in March. Gasoline prices rose 5.4% after a record 21.2% surge in March. Other motor fuels, which include diesel, increased 17.0%.

Consumers also paid higher prices for electricity amid strong demand from data centers to power artificial intelligence.

Food prices accelerated 0.5% after being unchanged in March.

Grocery store inflation shot up 0.7%, the largest increase since August 2022.

Beef prices increased 2.7%, the most since November 2024. Coffee prices rose 2.0%.

Fruits and vegetable prices climbed 1.8% while nonalcoholic beverages cost 1.1% more. There were also strong increases in the prices of dairy and eggs.

Continue Reading

International

Uganda’s President Museveni sworn in for seventh term

Museveni, born 1944 in Mbarra district area of Uganda has served as president since 1986.

Published

on

By

41 Views

Yoweri Museveni has been sworn in for his seventh term as President of Uganda on May 12, 2026, at the Kololo Independence Grounds in Kampala, following his victory in the January 2026 elections.

Museveni won with 71.65 percent of the vote, defeating his main challenger, 43-year-old Bobi Wine, who received 24.72 percent of the vote, according to the official results.

The 81-year-old leader took his oath for another five-year term, continuing his tenure as one of Africa’s longest-serving leaders.

Museveni, born 1944 in Mbarra district area of Uganda has served as president since 1986.

Continue Reading

Trending