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

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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.

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Japan opens door to global arms market with overhaul of defence export rules

“No single country can now protect its own peace and security alone, and partner countries that support each other in terms of defence equipment are necessary,” Japanese Prime Minister Sanae Takaichi said in a post on X.

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Japan’s old warship / Reuters image

Japan on Tuesday unveiled its biggest overhaul of defence export rules in decades, scrapping restrictions on overseas arms sales and opening the way for exports of warships, missiles and other weapons.

According to Reuters, the move aimed at strengthening Japan’s defence industrial ‌base marks another step away from the pacifist restraints that have shaped its postwar security policy.

Wars in Ukraine and the Middle East are also straining U.S. weapons production, expanding opportunities for Japan.

At the same time, U.S. allies in Europe and Asia are looking to diversify suppliers as Washington’s long-held security commitments look less certain under President Donald Trump.

“No single country can now protect its own peace and security alone, and partner countries that support each other in terms of defence equipment are necessary,” Japanese Prime Minister Sanae Takaichi said in a post on X.

The revision approved by Takaichi’s government removes five export categories that had limited most military exports to rescue, transport, ⁠warning, surveillance and mine-sweeping equipment.

Ministers and officials will instead assess the merits of each proposed sale.

Japan will keep in place three export principles that commit it to strict screening, controls on transfers to third countries and a ban on sales to countries involved in conflict.

But in a presentation outlining the changes, the government said exceptions could be made when deemed necessary for national security.

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South Korea Successfully Navigates First Oil Tanker Through Red Sea Amid Strait of Hormuz Blockade

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A South Korean oil tanker has safely transited the Red Sea, marking the country’s first successful crude oil shipment via this alternative route since the effective closure of the Strait of Hormuz earlier this year.

The development comes as South Korea intensifies efforts to secure its energy supplies amid ongoing geopolitical tensions and the blockade of one of the world’s most vital oil chokepoints, triggered by the prolonged conflict involving Iran.

According to the Ministry of Oceans and Fisheries, the tanker, which loaded crude oil at Yanbu port in Saudi Arabia on the Red Sea, has now exited the waterway. President Lee Jae-myung welcomed the news, describing it as a positive step for the nation’s energy security.

“It is good news that our vessel is transporting crude oil via the Red Sea for the first time since the blockade of the Strait of Hormuz,” President Lee posted on social media, commending officials and the crew for their efforts.

The move forms part of a broader strategy to diversify import routes and reduce reliance on the blocked Strait of Hormuz.

South Korea has already secured more than 270 million barrels (approximately 273 million barrels according to some reports) of crude oil and naphtha from the Middle East and Kazakhstan through alternative channels unaffected by the crisis.

These supplies are expected to sustain the country’s needs for several months.

Officials noted that the government plans to deploy additional Korean-flagged vessels to the Red Sea port of Yanbu in phases to further stabilise imports, despite risks such as potential threats from Houthi rebels in the region.

The successful transit highlights growing global shifts in energy logistics, as import-dependent nations adapt to disruptions in traditional shipping routes caused by the ongoing Middle East conflict.

South Korea, which relies heavily on Middle Eastern oil, continues to explore bypass options, including discussions on alternative pipelines and storage facilities, to ensure uninterrupted energy flows and protect its economy from volatility.

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BBC to Cut 2,000 Jobs in Biggest Downsize in 15 Years

The corporation announced a £600 million cost-cutting plan in February, saying that it would involve a reduction in headcount and the end of some programming.

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The BBC is to cut as many as 2,000 jobs in the biggest downsizing of the public service broadcaster in 15 years.

Staff were informed of the cuts, which will affect about 10 percent of the BBC’s 21,500 employees, at an all-staff meeting on Wednesday afternoon, the Guardian UK reported yesterday.

The round of job losses, the biggest at the BBC since 2011, is being set in motion before the former top Google executive Matt Brittin takes over as director general next month.

The corporation announced a £600 million cost-cutting plan in February, saying that it would involve a reduction in headcount and the end of some programming.

Tim Davie, the outgoing director general, said at the time that the BBC would need to cut 10 per cent of its approximately £6 billion annual cost base over the next three years.

Davie left the BBC on April 2, having announced his resignation in November after controversy over coverage of issues including Donald Trump, Gaza and trans rights.

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