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US initiated Trade Tariff War escalates with China, EU

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US initiated Trade Tariff War escalates with China, EU

Mexico and Canada also retaliate with additional tariff on US imports 

The trade tariff war initiated by US President Donald Trump with Canada, Mexico, EU and China has been escalating. Trump has given his approval to put tariffs on $50 billion of Chinese exports while EU has endorsed a plan to impose import duties on $3.3 bn worth of US products on Thursday.

CNN, quoting a source with knowledge of the situation has reported that President’s approval for US to put on $50 bn of Chinese exports came after a meeting Thursday with top economic officials, including Treasury Secretary Steven Munchin, Commence Secretary Wilbur Ross and US Trade Representative Robert Lighthizer. The announcement is expected on Friday.

The report says that the move represents a serious escalation of trade tensions between the world’s two largest economies — just as Trump has also picked fights with allies Canada, Mexico and the European Union over steel and aluminum.

It was first reported by Bloomberg.

Read More: Who needs enemy whey you have friends like Trump: EU Chief

Earlier Beijing said it would respond to US tariffs on $50 billion worth of Chinese exports with retaliatory tariffs on $50 billion of US products such as cars, planes and soybeans.

Meanwhile, AFP, quoting a European Commission source reports, that EU countries on Thursday endorsed a plan to impose import duties on $3.3 bn worth of US products in response to US tariffs on steel and aluminum imports from Canada, the EU and Mexico.

US initiated Trade Tariff War escalates with China, EUThe source said, “Member states have today unanimously supported the commission’s plan for the adoption of rebalancing measures on the US tariffs,” adding that they would be implemented “in coming days.” The retaliatory tariffs against US’ painful duties should be in place by late June or early July, the report said.

Read More: Trade war erupts; China slaps heavy duty on US products

Similarly Canada and Mexico have also announced their intention of taking counter measures against US imposed tariffs. Mexico has announced to impose tariffs on US imports including pork bellies, apples, grapes, cheeses and flat steels, among other products.

Canada has promised retaliatory tariffs worth $12.8bn on US products including steel, aluminum, whiskey and orange juice.

The ties among US and its European allies have been at their lowest level due to rows over a host of issues including trade tariffs, the Paris climate agreement, the Iran nuclear deal and the US Jerusalem move- recognizing it as Israel’s capital and moving its embassy to the holy city which was earlier promised to become capital of Palestine.

For months, Trump has slow-walked threats of tariffs against China as punishment for intellectual property theft. Initially he announced that US would impose trade penalties on about $50 billion of Chinese goods in March saying, “We have a tremendous intellectual property theft problem. It’s going to make us a much stronger, much richer nation.”

After China warned it would retaliate, Trump threatened tariffs on a further $100 billion of Chinese products. However, in mid-May, both announced a ceasefire after two rounds of trade negotiations.

They said in a joint statement that China would “significantly increase” purchases of US agricultural and energy products to reduce the trade imbalance, a top Trump administration demand. The US Treasury Secretary Steven Munchin subsequently declared the trade war “on hold.”

Ten days later, White House abruptly said it would proceed with the tariffs, along with new limits on Chinese investments in the US. Washington said it would finalize the list of goods that would be subject to 25% tariffs by June 15, and that the tariffs would go into effect “shortly thereafter.”

A further round of trade talks in Beijing earlier this month failed to yield any breakthroughs. On Thursday, Chinese Foreign Ministry spokesman Geng Shuang reiterated that China would not honor its pledge to increase purchases of US goods if tariffs were imposed.

After the G7 summit, held in Quebec, Canada last week, Trump sent out a couple of tweets in which he slammed Canadian Prime Minister Justin Trudeau as “very dishonest & weak,” and ordered US representatives not to sign a joint communiqué with the G7 leaders.

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Bondi Beach shooting during Jewish festival leaves at least 15 dead

Australia’s Bondi Beach was rocked by the deadliest shooting in decades as a father and son opened fire during a Jewish festival, killing at least 15 people.

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Bondi shooting Australia

At least 15 people were killed and dozens injured after a mass shooting at Sydney’s iconic Bondi Beach during a Jewish celebration, in what authorities have described as the deadliest gun attack in Australia in almost 30 years.

Police on Monday confirmed that the two attackers were a father and his son. The older man, identified as 50-year-old Sajid Akram, was shot dead by police at the scene, while his 24-year-old son Naveed Akram was injured and is undergoing treatment at a hospital.

The attack occurred during the “Chanukah by the Sea” event, held to mark the beginning of the eight-day Hanukkah festival. Around 1,000 people were attending the gathering in a small park near the beach when gunfire erupted, triggering panic among crowds enjoying a busy summer evening.

What happened at bondi beach

According to authorities, emergency services received the first calls about shots being fired around 6:45 pm. Witnesses said the attack lasted roughly 10 minutes, with people running across the sand and into nearby streets to escape the gunfire.

Videos from the scene showed two men firing long guns from a footbridge leading to the beach. Police have not officially confirmed the exact weapons used, though footage suggested a bolt-action rifle and a shotgun.

In one widely shared clip, a bystander was seen tackling and disarming one of the gunmen. The man was later praised by state leadership as a “genuine hero.” A public fundraising effort launched for him had raised over A$200,000 by Monday morning.

Attackers and investigation

Police said one of the attackers was known to security agencies, though there was no prior indication of a planned assault. Authorities later confirmed they were confident only two people were involved.

The younger attacker is an Australian-born citizen. Officials said the father had arrived in Australia in 1998 on a student visa, later transitioning to other residency permits. Investigators also searched the family’s home in Bonnyrigg, in western Sydney, where a heavy police presence remained through Monday.

Victims and community impact

Those killed ranged in age from 10 to 87 years. At least 42 others were hospitalised, several of them in critical condition. An Orthodox Jewish organisation confirmed that one of the victims was Rabbi Eli Schlanger, an assistant rabbi and one of the organisers of the event.

Eyewitnesses described scenes of chaos and fear. A young lifesaver present at the beach said seeing injured people, including children, was deeply distressing and unlike anything he had experienced before.

Community leaders urged unity and calm in the aftermath, stressing the importance of supporting those affected rather than allowing anger to divide communities.

Leaders condemn attack

Australian Prime Minister Anthony Albanese visited Bondi Beach on Monday to pay tribute to the victims, calling the shooting a “dark moment for our nation.” He described the incident as an act of antisemitism and terrorism, assuring the Jewish community of the government’s full support.

Several world leaders, including the US President, the French President and India’s Prime Minister Narendra Modi, condemned the attack and expressed solidarity with Australia.

Authorities said the shooting was the most serious antisemitic attack in the country in decades, coming amid a rise in incidents targeting Jewish institutions since late 2023. Investigations into the motive behind the attack are ongoing.

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US lawmakers move resolution to roll back Trump’s 50% tariffs on Indian imports

Three US lawmakers have moved a resolution to end Trump’s emergency declaration that imposed 50% tariffs on Indian goods, calling the move illegal and harmful to trade ties.

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Three members of the US House of Representatives have introduced a resolution seeking to end former President Donald Trump’s national emergency declaration that led to steep tariffs on imports from India. The lawmakers termed the duties illegal and warned that they have hurt American consumers, workers and long-standing India-US economic ties.

The resolution has been moved by Representatives Deborah Ross, Marc Veasey and Raja Krishnamoorthi. It aims to terminate the emergency powers used to impose import duties that cumulatively raised tariffs on several Indian-origin goods to 50 per cent.

What the resolution seeks to change

According to details shared by media, the proposal specifically seeks to rescind an additional 25 per cent “secondary” tariff imposed on August 27, 2025. This was levied over and above earlier reciprocal tariffs, taking the total duty to 50 per cent under the International Emergency Economic Powers Act.

The House move follows a separate bipartisan effort in the US Senate that targeted similar tariffs imposed on Brazil, signalling growing resistance in Congress to the use of emergency powers for trade actions.

Lawmakers flag impact on US economy and consumers

Congresswoman Deborah Ross highlighted the deep economic links between India and her home state of North Carolina, noting that Indian companies have invested over a billion dollars there, creating thousands of jobs in sectors such as technology and life sciences. She also pointed out that manufacturers from the state export hundreds of millions of dollars’ worth of goods to India each year.

Congressman Marc Veasey said the tariffs amount to a tax on American households already facing high costs, stressing that India remains an important cultural, economic and strategic partner for the United States.

Indian-American Congressman Raja Krishnamoorthi described the duties as counterproductive, saying they disrupt supply chains, harm American workers and push up prices for consumers. He added that rolling back the tariffs would help strengthen economic and security cooperation between the two countries.

Background of the tariff hike

Earlier in August 2025, the Trump administration imposed a 25 per cent tariff on Indian goods, which came into effect from August 1. This was followed days later by another 25 per cent increase, citing India’s continued purchase of Russian oil. The combined duties were justified by the administration as a measure linked to Moscow’s war efforts in Ukraine.

Wider push against unilateral trade actions

The latest resolution is part of a broader push by congressional Democrats to challenge unilateral trade measures and reassert Congress’ constitutional authority over trade policy. In October, the same lawmakers, along with several other members of Congress, had urged the President to reverse the tariff decisions and work towards repairing strained bilateral relations with India.

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Mexico imposes 50% tariff on Indian imports, auto exports maybe hit

Mexico’s approval of 50% import duties on select goods from India and other Asian countries threatens nearly $1 billion worth of Indian exports, especially in the automobile sector.

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Mexico has cleared steep import duties of up to 50% on several goods from Asian nations, a move that places nearly $1 billion worth of Indian exports at risk from January 1, 2026. The decision targets countries that do not have a trade agreement with Mexico, including India, South Korea, China, Thailand and Indonesia.

Mexico moves to shield domestic industry

The new duties—covering items such as automobiles, auto parts, textiles, plastics, steel, footwear, furniture, toys, appliances, leather goods, and cosmetics—are aimed at strengthening local manufacturing. Mexico says the tariff push is designed to reduce dependence on Asian imports and support domestic producers.

China stands to face the highest impact, with Mexican imports from the country touching $130 billion in 2024. According to Mexico, the revised tax structure is also expected to generate $3.8 billion in additional revenue.

Mexican President Claudia Sheinbaum has backed the decision, framing it as an investment in domestic employment creation. Analysts, however, believe the move may also align with the United States’ expectations ahead of the upcoming United States–Mexico–Canada (USMCA) review.

Impact on India’s automobile exports

The sharpest blow for India will fall on its automobile sector. Imports of passenger cars into Mexico will now face 50% duty instead of the earlier 20%, threatening the competitiveness of major exporters including Volkswagen, Hyundai, Nissan and Maruti Suzuki.

Industry estimates cited in a report say around $1 billion worth of Indian automobile shipments could be affected. Ahead of the tariff announcement, an industry body had urged the Indian government to engage with Mexican authorities to safeguard market access.

Mexico is currently India’s third-largest car export destination, trailing only South Africa and Saudi Arabia.

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