Washington told EU to brace for more tariffs before any talks, envoys say

BEIJING/WARSAW/WASHINGTON: Beijing on Friday increased its tariffs on US imports to 125 percent, hitting back against US President Donald Trump’s decision to hike duties on Chinese goods to 145 percent and raising the stakes in a trade war that threatens to up-end global supply chains.
China’s retaliation intensified the economic turmoil unleashed by Trump’s tariffs, with markets tumbling further and foreign leaders puzzling how to respond to the biggest disruption to the world trade order in decades.
The brief reprieve for battered stocks seen after Trump decided to pause duties for dozens of countries for 90 days quickly dissipated, as attention returned to the escalating trade conflict between the US and China that has fueled global recession fears.
Global stocks fell, the dollar slid and a sell-off in US government bonds picked up pace on Friday, reigniting fears of fragility in the world’s biggest bond market. Gold, a safe haven for investors in times of crisis, scaled a record high.
“Recession risk is much, much higher now than it was a couple weeks ago,” said Adam Hetts, global head of multi-asset at Janus Henderson.
US Treasury Secretary Scott Bessent shrugged off the renewed market turmoil on Thursday and said striking deals with other countries would bring certainty.
The US and Vietnam have agreed to begin formal trade talks, the White House said. The Southeast Asian manufacturing hub is prepared to crack down on Chinese goods being shipped to the United States via its territory in the hope of avoiding tariffs, Reuters exclusively reported.
Japanese Prime Minister Shigeru Ishiba, meanwhile, has set up a trade task force that hopes to visit Washington next week.
Trade war with China
As Trump suddenly paused his ‘reciprocal’ tariffs on other countries hours after they came into effect earlier this week, he ratcheted up duties on Chinese imports as punishment for Beijing’s initial move to retaliate.
He has now imposed new tariffs on Chinese goods of 145 percent since taking office.
China hit back with new tariffs on Friday, although Beijing indicated that this would be the last time it matched the US, should Trump take his duties any higher.
“Even if the US continues to impose even higher tariffs, it would no longer have any economic significance and would go down as a joke in the history of world economics,” the finance ministry statement added.
“If the US continues to play a numbers game with tariffs, China will not respond,” it added, however, leaving the door open for Beijing to turn to other types of retaliation, and reiterating that China would fight the US to the end.
Trump had told reporters at the White House on Thursday that he thought the United States could make a deal with China and said he respected Chinese President Xi Jinping.
“In a true sense he’s been a friend of mine for a long period of time, and I think that we’ll end up working out something that’s very good for both countries,” he said.
Xi, in his first public remarks on Trump’s tariffs, told Spanish Prime Minister Pedro Sanchez during a meeting in Beijing on Friday that China and the European Union should “jointly oppose unilateral acts of bullying,” in a clear swipe at Trump’s tariff policies.
“There are no winners in a trade war,” the Chinese leader told his guest, adding that by acting together, the world’s second-largest economy and the 27-strong European trade bloc could defend their interests and help uphold “the global rules-based order,” China’s state news agency Xinhua reported.

COPENHAGEN: A Copenhagen court is to rule Friday whether a lawsuit filed by four humanitarian organizations accusing Denmark of violating international law by exporting weapons to Israel is admissible in court.
The Palestinian human rights association Al-Haq, Amnesty International, Oxfam and Action Aid Denmark filed the lawsuit against the Danish foreign ministry and national police last year.
They said in a statement there was a risk that “Danish military materiel was being used to commit serious crimes against civilians in Gaza.”
The associations targeted the foreign ministry in their lawsuit since it “determines whether there is a risk that weapons and weapons components could be used to violate human rights” and the police because it was the authority responsible for issuing export licenses.
Denmark’s Eastern High Court is expected to announce its decision around 10:00 am (0800 GMT).
“We are the biggest human rights organization in the world and our mandate is clearly to protect human rights,” the secretary general of the Danish branch of Amnesty International, Vibe Klarup, said in a statement.
Danish media outlets Danwatch and Information revealed in 2023 that Israel’s F-35s were equipped with parts made by the Danish group Terma.
“Amnesty International has been working for several years to rally support for the UN Arms Trade Treaty (ATT) to ensure that states’ arms trading is not used to commit human rights violations,” said Klarup.
Danish Defense Minister Troels Lund Poulsen argued in October that Denmark’s participation in the F-35 program was “crucial for our security and our relations with our main allies.”
Last year, Amnesty International accused Israel of “committing genocide” against Palestinians in Gaza.
The Danish lawsuit was filed in March 2024, on the heels of a similar suit filed in the Netherlands by a coalition of humanitarian organizations.
A Dutch court in December rejected demands by pro-Palestinian groups for a total ban on exporting goods that can be used for military means to Israel.
The health ministry in Hamas-run Gaza says the overall death toll has reached 50,846 since the war with Israel began on October 7, 2023, a figure the UN has deemed reliable.
Hamas’ unprecedented assault on Israel resulted in 1,218 deaths, mostly civilians, according to an AFP tally based on official Israeli data.