China calls for world to unite against Trump's trade tyranny

According to a BBC report, China has called for the world to unite against US President Donald Trump's tariffs as the country's exporter reel from crippling new US levies that have risen to 104%.

"Global unity can triumph over trade tyranny," declared an editorial in the state-run newspaper China Daily, noting Beijing's collaborations with Japan, South Korea and other Asian economies. A separate piece called for the European Union to work with it to "uphold free trade and multilateralism".

Beijing "firmly opposes and will never accept such hegemonic and bullying practices," foregin ministry spokesperson Lin Jian told reporters on Wednesday.

The tariffs come at a difficult time for China's sluggish economy: domestic consumption remains weak and exports are still a major driver of growth.

The sweeping nature of Trump's tariffs has also left Chinese businesses scrambling to adjust their supply chains — with most countries affected, firms say it's hard to find a way out of this uncertainty.

The tariffs will shrink "already razor-thin profit margins", said the owner of a Chinese business that handles cross-border logistics for e-commerce, as well as air and sea freight.

"Higher tariffs raise costs for freight forwarders like us, as well as for factories, companies, and sellers. It just means everyone earns less."

Any tariff upwards of 35% will wipe out all the profits that Chinese businesses make when exporting to the US or South East Asia, said Dan Wang from the Eurasia Group consultancy.

"Growth is going to be much lower since exports contributed to 20% to 50% of growth since the Covid pandemic," she added.

The Chinese government has not announced retaliatory measures but Beijing is reportedly considering banning Hollywood films and suspending fentanyl cooperation with the US, according to Chinese blogger Liu Hong, who is a senior editor at state-run Xinhua news.

But that would offer little comfort to firms like Fuling, a firm that sells disposable tableware to US fast food restaurants like McDonald's and Wendy's, said the additional tariffs will "significantly impact" its business. It noted that nearly two-thirds of the company's revenue in 2023 and the first half of last year came from the US.

To mitigate the impact of tariffs, Fuling, which is headquartered in China's Zhejiang province, started a new factory in Indonesia late last year.

But Trump's new tariffs have introduced more uncertainty for Chinese exports from Indonesia are now subject to a 32% levy, the company said in a corporate filing.

Indonesia was hit along with much of the world in President Trump's announcement of expansive tariffs last week, which he claimed would allow the US economy to flourish.

But economists have warned of a US and global recession. The tariffs have also shaken global markets and drawn criticism from billionaire CEOs, including Trump's ally Elon Musk.

Trump's import taxes include a 10% baseline tariff on almost all foreign imports to the US, and higher custom tariffs for what he calls the "worst offenders". These include Cambodia (49%), Vietnam (46%) and Thailand (36%), developing economies that have benefited from strong exports.

After Beijing announced tit-for-tat tariffs, Trump raised the levies on Chinese imports, more than doubling them to 104%.

Emo told the BBC he is holding out hope that China will be able to negotiate away some of these taxes: "Only when a final decision is made can we plan our next steps."

While China has left the door open for talks, Trump has not spoken to Chinese leader Xi Jinping since returning to the White House.

Such broad, sweeping tariffs will cause more harm than good, the American Chamber of Commerce in China said in a note to its member companies on Wednesday.

"This level of upheaval is unprecedented, and it remains unclear how the current measures will benefit consumers in either nation or the broader economy," read the note signed by Chair Alvin Liu and President Michael Hart.

Some analysts believe the levies will force China to restructure its economy and rely heavily on domestic consumption, which it has been struggling to boost.

Otherwise, the tariffs will not be sustainable for China in the longer term, Tim Waterer from brokerage KCM Trade said.

"The tariffs are aimed at suppressing China," said the manager of a Chinese freight company.

Wu Changchun added that many of the South East Asian countries that have been hit with steep tariffs are "exactly where many Chinese businesses have relocated", such as Vietnam and Cambodia.

The Tianjin-based company plans to negotiate with some of its American clients to share the burden of the tariffs. "Every case is different, but overall, the impact has been quite substantial," he said.

Wu, whose company operates mainly on shipping routes between China and Cambodia, said he is already seeing a fall in freight volume.

Several construction projects in Cambodia have also come to a halt after Trump's tariffs announcement, he said.

"If the tariffs were at 10% or 20%, businesses might still be able to absorb the cost by optimizing supply chains, cutting margins and sharing the burden. Trade could still go on... [But at 104%] that's no longer something trade-offs can fix," said Wu, a general manager at Maritima Maruba.

"That's full-on decoupling. Trade would basically come to a standstill."

Around 25% tunnels in Gaza destroyed

According to The Jerusalem Post, IDF has only destroyed about a quarter of Hamas’s tunnels in Gaza. Security sources also added that a significant number of smuggling tunnels crossing from Egypt to the Gaza strip are still intact. The Egypt-Gaza border remains a point of contention, with concerns over weapons smuggling resulting in Israel’s refusal to withdraw from the Philadelphia Corridor. 

“I saw with my own eyes quite a few tunnels crossing into Egypt; some were closed, and several were open,” Defense Minister Israel Katz said at a February conference, according to N12.

“We had information that Hamas was planning to attack soldiers and settlements during the ceasefire.”

Despite efforts to control the corridor as a buffer zone, numerous experts argue that holding the border may not effectively stop the flow of weapons.

The report follows the recent resumption of combat operations in the Gaza Strip and a military order issued in late March directing residents of Rafah in southern Gaza to evacuate.

The IDF had previously withdrawn troops from Rafah after a ceasefire was agreed upon in January, though that ceasefire has since expired.

Less than two weeks ago, the IDF reported that Yahalom Unit troops dismantled a one-kilometer-long Hamas tunnel route. Currently, the 143rd, 252nd, and 36th IDF divisions are operating in the area.

The IDF also told N12 that it has detected a significant number of Hamas terrorists fleeing combat zones. These terrorists are reportedly hiding among civilian populations and within tunnels, likely trying to avoid direct contact with soldiers.

The military noted that its operations in Gaza have become more decentralized, with limited face-to-face combat, although it assumes this will be temporary. The IDF believes Hamas will eventually be forced to engage in direct confrontation again.

“IDF troops, under the leadership of the Southern Command, are deepening the operation, and this will continue at a deliberate and determined pace,” said Chief of the General Staff, Lt.-Gen Eyal Zamir.

“The only thing that can halt our advance is the release of our hostages. Their return would allow our forces to reposition and enable the continuation of negotiation.” 

 

 

 

 

Saudi Arabia announces oil and gas discoveries

Minister of Energy Prince Abdulaziz bin Salman announced on Wednesday that the Saudi-Aramco has discovered 14 Arabian oil and natural gas fields and reservoirs in the Eastern Province and the Empty Quarter. The discoveries include six fields and two reservoirs of Arabian oil, as well as two fields and four reservoirs of natural gas, reports the Saudi Gazette.

The minister extended his congratulations to Custodian of the Two Holy Mosques King Salman and Crown Prince and Prime Minister Mohammed bin Salman on these discoveries, expressing his wishes for continued growth, development, and prosperity of Saudi Arabia and its people.

Prince Abdulaziz stated that Jabu oil field has been discovered in Eastern Province, following the flow of Arabian Extra Light Oil in Jabu-1 well at a rate of 800 barrels per day (bpd). Sayahid oil field was also discovered, where Arabian Extra Light Oil flowed in Sayahid-2 well at a rate of 630 bpd. Additionally, Ayfan oil field was discovered, where Arabian Extra Light Oil in Ayfan-2 well flowed at a rate of 2,840 bpd, with 0.44 million standard cubic feet (MMscf) of associated gas per day.

He said that Jubaila oil reservoir has been discovered in Berri field after Arabian Light Oil flowed in Berri-907 well at a rate of 520 bpd, associated with 0.2 MMscf of gas per day. In addition, Unayzah-A oil reservoir was discovered in Mazalij field after the flow of Arabian Super Light Oil in Mazalij-64 well at a rate of 1,011 bpd, along with 0.92 MMscf of associated gas per day.

In the Empty Quarter, Nuwayr oil field has been discovered after the flow of Arabian Medium Oil in Nuwayr-1 well at a rate of 1,800 bpd, with 0.55 MMscf of associated gas per day. Additionally, the oil field Damda was discovered, where Arabian Medium Oil flowed in Damda-1 well at a rate of 200 bpd from Mishrif-C reservoir, while Arabian Extra Light Oil flowed from Mishrif-D reservoir in the same well at a rate of 115 bpd. Also, the discovery of Qurqas oil field was confirmed after Arabian Medium Oil flowed in Qurqas-1 well at a rate of 210 bpd.

For natural gas, the minister of energy announced the discovery of Ghizlan gas field in the Eastern Province, where gas flowed in Ghizlan-1 well at a rate of 32 MMscf per day from Unayzah B/C reservoir, with 2,525 barrels of condensate. Also, Araam gas field was discovered after gas flowed in Araam-1 well from Unayzah B/C reservoir at a rate of 24 MMscf per day with 3,000 barrels of condensate.

Qusaiba unconventional gas reservoir was also discovered in Mihwaz field in the Eastern Province, where gas flowed in Mihwaz-193101 well at a rate of 3.5 MMscf per day, with 485 barrels of condensates. In the Empty Quarter, Arab-C gas reservoir was discovered in Marzouq field, where gas flowed in Marzouq-8 well at a rate of 9.5 MMscf per day. The same well also resulted in the discovery of Arab-D gas reservoir, after the flow of gas at a rate of 10 MMscf per day. Additionally, the Upper Jubaila gas reservoir was discovered from the same well, where gas flowed at a rate of 1.5 MMscf per day.

Prince Abdulaziz underscored on the importance of the added value that these discoveries represent, solidifying the Kingdom’s leading position in the global energy sector, and reinforcing its rich hydrocarbon potential. Citing that such discoveries will lead to opening new horizons for the Kingdom’s economic development and strengthening its ability to meet both domestic and global energy demand efficiently and sustainably for decades to come. "These discoveries will also support sustained economic growth and prosperity, in line with Vision 2030 and Saudi Arabia’s ambitious goals to fully harness its natural resources and enhance global energy security," the minister added.

 

 

Freeing Panama Canal from Chinese influence

The United States will free the Panama Canal from Chinese influence, US Defense Secretary Pete Hegseth said on Tuesday during a visit to the Central American nation.

After talks with Panaman government, Hegseth vowed to deepen security cooperation with Panamanian security forces and said China would not be allowed to "weaponize" the canal by using Chinese firms' commercial relationships for espionage.

"Together, we will take back the Panama Canal from China's influence," Hegseth said, speaking at a pier renovated with U.S. assistance in Panama City.

"China did not build this canal. China does not operate this canal and China will not weaponize this canal. Together with Panama in the lead, we will keep the canal secure and available for all nations."

More than 40% of US container traffic, valued at roughly US$270 billion a year, goes through the Panama Canal, accounting for more than two-thirds of vessels passing each day through the world's second-busiest interoceanic waterway.

Hegseth, the first US defense secretary in decades to visit Panama, flew over the canal in a Black Hawk helicopter after meeting US troops and Panamanian security forces. He also toured the Miraflores lock, waving to sailors passing through on a container ship.

His language appeared fine-tuned, talking tough but offering some assurances to Panamanians still unsettled by Trump’s threats to reclaim the canal.

While Hegseth spoke about removing Chinese influence, Trump has spoken in broader terms and not ruled out using military force.

Hegseth's trip follows reports that the Trump administration has requested options from the US military to ensure access to the canal, which the United States built more than a century ago and handed over to Panama in 1999.

Trump has complained that was a bad deal for the United States.

Given Trump's tough rhetoric, the stakes were high for Hegseth's visit.

"On the whole, this hasn't been a winning issue for the United States in terms of public diplomacy in Panama," said Ryan Berg, director of the Americas Program at the Center for Strategic and International Studies.

Still, current and former US officials and experts say the United States has found a willing partner in tackling Chinese influence in Panama's President Jose Raul Mulino, whom Hegseth met earlier on Tuesday.

In February, Mulino announced Panama's formal move to exit China's Belt and Road Initiative and he has aided Trump's crackdown on migrants.

He has accepted deportation flights of non-Panamanians and worked to stem migration from South America by those crossing through his country's dangerous Darien jungle.

Hegseth praised Mulino, saying his government understood the threat from China, and his remarks about Panama being in the lead on addressing the canal's security concerns appeared to be a nod to Panamanian sensitivities.

During his visits to bases, which once had names including Fort Sherman and Rodman Naval Station before the US exit, Hegseth spoke about the canal as "key terrain" and held out hope for more frequent engagements by US troops, including by revitalizing a jungle survival training center.

"In reality or in perception, the communist Chinese have had designs on more control of this canal, and to that we say Not on our watch," Hegseth told US troops and Panamanian security forces. "We will grow our partnership even more."

Hegseth, a US military veteran and former Fox News host, has enthusiastically backed Trump's southern-focused security agenda, by means such as dispatching U.S. troops to the US border with Mexico, offering space at a base at Guantanamo Bay, Cuba to detain migrants, and military aircraft for deportation flights.

 

Iran: Tangled nuclear dispute with the West

Iran and the United States are scheduled to hold talks on Saturday on Iran's nuclear program, with US President Donald Trump having threatened military action if they cannot agree a deal. Iran's nuclear program has been the subject of a long dispute between it and Western countries that fear it wants to build an atomic bomb, which Tehran denies. Here is a timeline of the dispute:

1957 - Iran and United States signed a nuclear cooperation deal and the United States delivers a research reactor to Iran a decade later.

1970 - Iran ratified the Nuclear Nonproliferation Treaty (NPT), giving it the right to a civilian nuclear program but barring it from seeking an atomic bomb.

1979 - Iran's Islamic revolution upended its ties to major powers, turning former ally the United States into its main foe.

1995 - Russia agreed to finish construction of Iran's planned nuclear power plant at Bushehr, originally started by Germany and shelved after the revolution.

2003 - The UN nuclear watchdog, the International Atomic Energy Agency (IAEA), alleged Iran has not complied with NPT after the revelation it has secretly built a uranium enrichment plant at Natanz and a heavy water plant for plutonium at Arak.

Both can be used to make fuel for nuclear power but they can also be used in atomic warheads.

Iran accepted European proposals for more transparency in its nuclear program including snap IAEA inspections.

2004 - The IAEA said Iran did not provided the transparency it promised. Iran said it would not suspend uranium enrichment activity.

2005 - Russia offered to supply Iran with fuel for Bushehr to stop it developing its own fuel by making enriched uranium or plutonium.

IAEA said Iran was not in compliance with agreements and EU countries halted negotiations.

2006 - Iran resumed work at Natanz, said in April it had enriched uranium for the first time to about 3.5%, far short of the 90% needed for a warhead.

World powers the United States, Russia, China, France, Britain and Germany - later known collectively as the P5+1 offered Iran incentives to halt enrichment.

The United Nations Security Council imposed sanctions on Iran over its enrichment.

2009 - Western countries alleged Iran was building another secret uranium enrichment facility under a mountain at Fordow near Qom.

2010 - Iran started making 20% enriched uranium. The UN Security Council expanded sanctions including an embargo on major weapons systems, as the US and EU tighten their own sanctions.

A computer virus - Stuxnet - deployed aimed at paralyzing the Natanz plant, the start of direct operations against Iranian facilities that Tehran blames on Israel.

2011 - Bushehr nuclear plant started operations. Iran said it was using more advanced centrifuges to expand its 20% enrichment program.

2013 - Former nuclear negotiator Hassan Rouhani was elected Iranian president offering new proposals. He and US President Barack Obama hold a first call between leaders of the countries since 1979.

Iran-P5+1 talks in Geneva resulted in a Joint Plan of Action with steps required by both sides including reducing Iran's enriched uranium stockpile, more IAEA access and some sanctions relief.

2014 - Negotiations on a final deal continued through the year, with Iran halting uranium enrichment to 20% and work at Arak and getting access to oil revenue frozen by sanctions.

US allies in the region, Israel and Saudi Arabia, repeatedly cautioned Washington against a deal, saying Iran could not be trusted and citing its growing sway in the region.

2015 - Iran and the P5+1 agreed the Joint Comprehensive Plan of Action (JCPOA) deal that limits Iran's nuclear work, allowing more inspections and a loosening of sanctions.

2016 - IAEA said Iran had met its commitments under the JCPOA, leading to UN sanctions tied to the nuclear program being lifted.

However, Iran's long-range ballistic missile tests prompt unease despite Tehran saying they could not carry nuclear warheads.

2017 - New US President Donald Trump declared the JCPOA was the "worst deal ever" and unilaterally pulled out. Despite Trump promising a better deal there have been no new talks.

2018 - The US reimposed on Iran.

2019 - With ties between Iran and the West deteriorating, a string of attacks on Gulf oil tankers and other regional energy facilities were blamed by the US on Iran.

2020 - A blast rocks Iran's Natanz plant and a nuclear scientist is assassinated near Tehran with Iran blaming both incidents on Israel.

2021 - With Trump out of the White House, the US and Iran resumed indirect talks but there was little progress.

Iran started enriching uranium to 60% - not too far from 90% needed for a bomb.

There were attacks on Iran's Natanz and a centrifuge factory in Karaj.

2022 - The IAEA accused Iran did not answer questions over uranium traces found at more sites. Iran stopped IAEA inspections and installed more new centrifuges at Natanz.

2025 - Trump returns to the White House and declared Iran must agree to a nuclear deal or there will be bombing.

 

Saudi bourse records highest close since December 2024

Saudi Arabia’s benchmark Tadawul All Share Index (TASI) closed 117 points or 1.1% higher at 11,194 points on Monday, the highest close since December 2024. Total turnover was recorded at SR 10.6 billion.

The Saudi stock market, the largest bourse in the Arab world, began trading on Monday with a significant drop of more than 400 points, reaching its lowest level of the day at 10,657 points, before recouping these losses to close in green. The market fell more than 800 points on Sunday.

Monday's upward trend in the Saudi market contrasts with global financial markets, which witnessed significant declines on the day. This was in addition to the third consecutive day of declines in oil prices, due to fears of a global trade war and an economic recession following US tariffs and Chinese counter-tariffs.

Saudi Aramco shares rose one percent to SR25.25 on Monday after suffering huge losses a day ago when its market value fell by more than SR340 billion.

National Education shares topped Monday's gains, rising 9% while ACWA Power shares rose 7% to and Al-Tawuniya shares rose 5% to, following the company's announcement of cash dividends to shareholders. CATRION, Sulaiman Al Habib, Mobily, Yamama Cement, Aldrees, Advanced, and Qassim Cement gained 3% to 6%.

In contrast, SABIC shares fell one percent and BATIC led the declines falling 10 percent.

Other Gulf stock markets also pared the heavy losses they incurred at the start of trading on Monday. The Dubai Financial Market lost 152.46 points at the close, recording a decline of 3.08%. FTSE Abu Dhabi General Index fell 2.59%. The Dubai Financial Market index fell by about 6% in morning trading, bringing its losses to nearly 10% in three trading sessions and 15% since February.

PSX benchmark index down 3.27%

The Pakistan Stock Exchange (PSX) plunged by 3,882 points on Monday amid global market turmoil following China’s retaliatory tariffs against the United States. The benchmark KSE-100 index plunged by 3,882.18 points, or 3.27% to 114,909.48 from the previous close of 118,791.66.

Trading was earlier halted at the PSX for an hour after the benchmark index plummeted by 6,000 points triggering the suspension, only to drop another 2,000 points when trading resumed.

The automatic circuit breakers are designed to prevent panic selling and provide investors time to reassess during extreme market volatility.

The benchmark KSE-100 index initially declined by 6,287.22 points, or 5.29% by 11:58am (PST), before trading was halted. Shortly after reopening, it declined by a cumulative 8,687.69, or 7.31%, from the last close to 110,103.97 at 1:15pm.

At 2:02pm, the index was at 113,154.63, down by 5,637.03 points or 4.75%, from the last close.

The previous time that the PSX had seen such a massive slump was on December 19, 2024 when the KSE-100 index shed 4,795.31 points amid rising political noise and missile program-related US sanctions on Pakistani companies.

Awais Ashraf, director research at AKD Securities, attributed the decline to “investors’ fears that tariff hikes could lead to global recession through weaker demand”.

“We believe being an import-led economy … the imposition of US tariffs would benefit us due to possible decline in global commodity prices,” he added.

Mohammed Sohail, chief executive of Topline Securities, also attributed the decline to the global market crash.

He noted that the stock market had halted after falling 5pc to cool down around 12pm.

He said that the oil and gas exploration sector, technology, and textile sector were expected to be affected as they were either linked to global commodity prices or global aggregate demand.

Arif Habib Limited, in a note, said this was a historic day-on-day decline, leading to a market halt.

Yousuf M. Farooq, director research at Chase Securities, said markets were broadly down on fears of a global recession. About the initial decline, he had noted that the index had witnessed a relatively modest drop compared to other regional markets.

He noted that there was notable selling pressure in oil and banking stocks.

“Lower oil prices are expected to negatively impact earnings for oil exploration companies,” he stated, highlighting that at the same time, textile exporters could “face headwinds from new US tariffs”.

“While these tariffs pose short-term risks, particularly for the textile sector, the overall impact of the US trade policy may prove neutral to positive for Pakistan — especially if commodity prices stay low,” he added.

On the government’s role, he stressed that the federal government would have to “move quickly and start negotiations for the removal of tariffs from Pakistani products”.