WASHINGTON: President Donald Trump directed the US Trade Representative to prepare new tariffs on $200 billion in Chinese imports on Monday as the two nations moved closer to a potential trade war.
The tariffs, which Trump wants set at a 10 percent rate, would be the latest round of punitive measures in an escalating dispute over the large trade imbalance between the two countries. Trump recently ordered tariffs on $50 billion in Chinese goods in retaliation for intellectual property theft. The tariffs were quickly matched by China on US exports, a move that drew the president’s ire.
“China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology,” Trump said in a statement Monday announcing the new action. “Rather than altering those practices, it is now threatening United States companies, workers, and farmers who have done nothing wrong.”
Trump added: “These tariffs will go into effect if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced.”
Trump said that if China responds to this fresh round of tariffs, then he will move to counter “by pursuing additional tariffs on another $200 billion of goods.”
It wasn’t immediately clear when the new tariffs could be put in place, as the trade office has yet to identify the Chinese goods to be penalized or conduct a legal review. The first round of penalties announced by both nations is set to take effect July 6.
The intellectual property sanctions were the latest in a spate of protectionist measures unveiled by Trump in recent months that included tariffs on steel and aluminum imports to the US and a tough rhetoric on trade negotiations from North America to Asia.
The escalation in the dispute with China may also serve as a warning to other trading partners with whom Trump has been feuding, including Canada and the European Union.
The move quickly drew praise from former Trump senior adviser Steve Bannon, who told The Associated Press: “President Trump told China and the world tonight that America will not back down when it comes to economic aggression.”
But Wall Street has viewed the escalating trade tensions with wariness, fearful they could strangle the economic growth achieved during Trump’s watch. Gary Cohn, Trump’s former top economic adviser, said last week that a “tariff battle” could result in price inflation and consumer debt — “historic ingredients for an economic slowdown.”
Trump’s comments came hours after the top US diplomat accused China of engaging in “predatory economics 101” and an “unprecedented level of larceny” of intellectual property.
Secretary of State Mike Pompeo made the remarks at the Detroit Economic Club as global markets reacted to trade tensions between the US and China.
He said China’s recent claims of “openness and globalization” are “a joke.” He added that China is a “predatory economic government” that is “long overdue in being tackled,” matters that include IP theft and Chinese steel and aluminum flooding the US market.
“Everyone knows ... China is the main perpetrator,” he said. “It’s an unprecedented level of larceny.”
“Just ask yourself: Would China have allowed America to do to it what China has done to America?” he said later. “This is predatory economics 101.”
The Chinese Embassy in Washington did not respond to a request for comment.
Pompeo raised the trade issue directly with China last week, when he met in Beijing with President Xi Jinping and others.
“I reminded him that’s not fair competition,” Pompeo said.
President Donald Trump had announced a 25 percent tariff on up to $50 billion in Chinese imports. China is retaliating by raising import duties on $34 billion worth of American goods, including soybeans, electric cars and whiskey. Trump also has slapped tariffs on steel and aluminum imports from Canada, Mexico and European allies.
Pompeo on Monday described US actions as “economic diplomacy,” which, when done right, strengthens national security and international alliances, he added.
“We use American power, economic might and influence as a tool of economic policy,” he said. “We do our best to call out unfair economic behaviors as well.”
In a statement, Trump says he has an “excellent relationship” with Xi, “but the United States will no longer be taken advantage of on trade by China and other countries in the world.”
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Karoub reported from Detroit. AP writer Ken Thomas contributed.
Upping ante, Trump threatens new tariffs on Chinese imports
Upping ante, Trump threatens new tariffs on Chinese imports
- Trump said that if China responds to this fresh round of tariffs, then he will move to counter “by pursuing additional tariffs on another $200 billion of goods.”
- Gary Cohn, Trump’s former top economic adviser, said last week that a “tariff battle” could result in price inflation and consumer debt — “historic ingredients for an economic slowdown.”
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Egypt increases funding needed in 2024-2025 budget by over $59bn
RIYADH: Egypt has increased the amount of funding required in its 2024-2025 budget by over 2.8 trillion pounds ($59 billion) following successive shock waves.
In the financial statement of the new draft budget, Minister of Finance Mohamed Maait highlighted that the changes are reflective of the continuous struggles that the North African country has been facing following the COVID-19 epidemic.
The added funding aims to alleviate the inflationary effects that have been burdening the Egyptian public, improve the standard of living, and meet the developmental needs of citizens, the report said.
The allocation of spending in the budget will also seemingly reflect the needs of individuals by increasing spending on health and education and aiming to improve job opportunities.
Egypt’s economy has witnessed blows over the last half year due to the ongoing crisis in Gaza, which has slowed tourism growth and cut into Suez Canal revenue, two of the country’s biggest sources of foreign currency.
Amid a staggering shortage of foreign currency and rapidly increasing inflation, the challenges prompted the International Monetary Fund to expand its financial support to Egypt to $8 billion in an attempt to shore up the country’s economy.
In a statement in March, the IMF board said its decision would enable Egypt to immediately receive about $820 million.
Similarly, the UAE, represented by a private consortium led by the Abu Dhabi Developmental Holding Co., signed a landmark agreement with Egypt in February to invest $35 billion in Ras El-Hekma, a region on the Mediterranean coast 350 km northwest of Cairo.
Since securing the deal, which marked the single largest foreign direct investment in the North African country, the nation launched some long-sought reforms with the central bank delivering a 600 basis-point interest rate hike and a pledge to unshackle its currency alongside a devaluation.
This led S&P Global Ratings to note that it has been encouraged by the rush of financial support to Egypt, therefore lifting its economic outlook for the country to positive from stable after the long-awaited currency devaluation, which is poised to ease foreign currency shortages.
Saudi Arabia’s aviation growth plays pivotal role in economic development: GACA president
RIYADH: Growth in air traffic, heightened investment interest, and a comprehensive strategy are driving Saudi Arabia’s aviation sector expansion, according to a top official.
Abdulaziz Al-Duailej, president of the Saudi General Authority of Civil Aviation, highlighted the sector’s pivotal role in economic growth and sustainable development during his speech at the Airlines Economic Growth Frontiers conference in Riyadh.
Al-Duailej emphasized that Saudi Arabia is significantly advancing its civil aviation sector under Vision 2030 and the National Aviation Strategy, according to a report by the Saudi Press Agency.
The initiative aims to cement the Kingdom’s leadership in Middle Eastern civil aviation by enabling investments worth $100 billion by 2030 and leveraging private sector resources and expertise.
The strategy also outlines a holistic plan to upgrade airport services, airlines, and associated facilities, including cargo and logistics.
It aims to enhance the Kingdom’s global air connectivity through 29 airports, significantly grow passenger numbers, and establish Saudi Arabia as a premier center for cargo and logistics by 2030.
Al-Duailej pointed out the initiative’s focus on enabling competition and efficiency to stimulate investment and growth, overseeing its implementation, and ensuring compliance with regulations that provide safety, security, and sustainability.
He also highlighted the significant progress made in the aviation sector’s infrastructure and overall performance, driven by several undertakings launched by GACA.
These initiatives include massive investments that offer unprecedented opportunities for global aviation investors and operators.
He also mentioned a partnership between the public and private sectors to triple Abha International Airport’s capacity to accommodate 10 million passengers by 2030. The airport has already received interest from 100 companies to participate in this project.
Among the undertakings is the establishment of Riyadh Air, the launch of the master plan for King Salman International Airport in Riyadh, which aims to serve nearly 120 million passengers by 2030, and the opening of the Red Sea International Airport.
Moreover, Al-Duailej highlighted the launch of the National Air Connectivity Program to support the tourism and travel sectors in the Kingdom.
He also discussed significant investments in renewable energy and advanced air transport involving Saudia Airlines and NEOM, alongside substantial expansions by The Helicopter Co.
These efforts align with broader regulations promoting environmental awareness, ensuring balanced and sustainable growth for the aviation sector in the Kingdom in the long term.
Regarding passenger traffic, Al-Duailej revealed that the Kingdom saw a 26 percent increase last year, reaching a record 112 million travelers and surpassing 2019 figures by 8 percent.
In the first two months of this year alone, air traffic increased by 20 percent compared to the same period in 2023.
Another point of emphasis was the increase in air connectivity to nearly 150 destinations, with low-cost airlines driving growth between 2019 and 2023, thereby doubling their market share both domestically and internationally.
The Airlines Economic Growth Frontiers conference, hosted by AVILEASE, a subsidiary of the Public Investment Fund, aims to highlight opportunities within the civil aviation sector.
The event, held at the Four Seasons in Riyadh from April 22-23, saw the presence of the vice presidents of the GACA, representatives of the PIF, and numerous officials and industry stakeholders from around the world.
TotalEnergies, OQ to launch $1.6bn LNG Bunkering project in Oman
RIYADH: Oman’s Sohar Port is set to house a new $1.6 billion liquefied natural gas bunkering plant following an agreement inked between OQ and TotalEnergies.
Bunkering involves transferring LNG to a ship for use as fuel, offering a cleaner alternative compared to traditional methods such as marine gas oil and heavy fuel oil.
TotalEnergies will provide 80 percent of the investment, with OQ contributing the remaining 20 percent through their joint venture, Marsa Liquefied Natural Gas LLC.
The Marsa LNG project, the first of its kind in the Middle East, is poised to have significant economic implications. It’s expected to bolster Oman’s treasury revenues and enhance local value through collaborative local investments.
Patrick Pouyanne, chairman and CEO of TotalEnergies, said: “We are proud to open a new chapter in our history in the Sultanate of Oman with the launch of the Marsa LNG project, together with our partner OQ, demonstrating our long-term commitment to the country.”
He explained that the innovative project illustrates their pioneer spirit and showcases the relevance of their integrated multi-energy strategy, with the ambition of being a responsible player in the energy transition.
“By paving the way for the next generation of very low emission LNG plants, Marsa LNG is contributing to making gas a long-term transition energy,” Pouyanne added.
The plant, powered entirely by solar energy, is expected to contribute to the reduction of carbon emissions and the shipping industry’s overall carbon footprint. Notably, it is projected to emit less than 3 kg of carbon dioxide per oil equivalent barrel.
“The Marsa LNG project is one of the many initiatives that reflect Oman’s goal of achieving carbon neutrality by 2050,” Minister of Energy and Minerals Salim Al-Aufi said.
Minister affirms Riyadh as global solutions hub ahead of special meeting of World Economic Forum
RIYADH: Riyadh has emerged as a beacon of “thought leadership, action, and solutions,” stated one of Saudi Arabia’s top officials as the Kingdom’s capital prepares to host the World Economic Forum.
Faisal Al-Ibrahim, the minister of economy and planning, made the comments ahead of the summit on global collaboration, growth, and energy for development, slated for April 28 to 29, which aims to empower leaders from both public and private sectors to tackle mutual global challenges.
According to the WEF website, the meeting will also advance key forum initiatives in the region and beyond as it aims to bridge the growing North-South global divide, which has further widened on issues such as emerging economic policies, the energy transition and geopolitical shocks.
“The Crown Prince’s patronage of the World Economic Forum Special Meeting in Riyadh is a testament to our leadership’s determination to convene the world to take action and expand global collaboration on the critical topics of our time,” said Al-Ibrahim in a post on X.
He welcomed global leaders to this pivotal moment for social, economic, and human development, urging them to “build bridges toward a secure, stable and sustainable future.”
Saudi Arabia’s Diriyah Co. unveils its mixed-use commercial office and retail offering Zallal
RIYADH: Saudi Arabia’s Diriyah Co. has shared plans for its inaugural mixed-use commercial office and retail development Zallal, set to launch in the Bujairi district during the first half of 2025.
This project will feature two low-rise office buildings with a combined leasable space of around 6,000 sq. m. Additionally, there will be 12 mixed retail and food and beverage outlets spread across about 8,000 sq. m.
Located next to the popular Bujairi Terrace, Zallal will benefit from proximity to a venue that attracts thousands of visitors daily.
The development is also located close to the recently completed Diriyah Art Futures and the soon-to-open Bab Samhan Hotel.
Jerry Inzerillo, group CEO of Diriyah Co, said: “We have been delighted with the hugely positive reception that Zallal has had from the commercial sector, and we are in advanced negotiations with international and local companies eager to benefit from the central location in the heart of Diriyah and the diverse range of accessible retail, F&B and office space available.”
He added: “With construction well underway, Zallal maintains the exciting momentum at Diriyah, and when open, will benefit from the thousands of daily visitors to Bujairi Terrace becoming the latest completed precinct in our rapidly developing masterplan.”
The company stated that prospective tenants have responded very favorably to the project, and advanced leasing negotiations are underway with several businesses and organizations.
Zallal will provide direct access to Wadi Hanifah and offer views of the UNESCO World Heritage site of At-Turaif from its position on the outskirts of the Saudi capital.
The ongoing construction work aims to integrate design elements that reflect Diriyah’s nearly 300-year history of traditional Najdi architecture.
Furthermore, Zallal will feature an underground parking facility offering direct access to Wadi Hanifah, Al Imam Abdulaziz bin Muhammad bin Saud Road, and public transportation options.
The facility is designed with convenience in mind, featuring designated coach drop-off points for tourists and visitors. This ensures a seamless transition to the pedestrian-friendly environment upon arrival.
Among the companies already involved in leasing negotiations are well-known international brands seeking to establish their presence in Saudi Arabia for the first time, the company said. Additionally, local companies and emerging Saudi concepts are also part of the leasing discussions.
In February, Diriyah Co. unveiled its plans to initiate construction on 11 new assets by the end of 2024, with the signing of two agreements on the sidelines of the Public Investment Fund’s Private Sector Forum.
