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China, US Slash Sweeping Tariffs in Trade War Climbdown

Under Monday's deal, the United States agreed to lower its tariffs on Chinese goods to 30 percent while China will reduce its own to 10 percent -- down by over 100 percentage points. STR / AFP
Under Monday's deal, the United States agreed to lower its tariffs on Chinese goods to 30 percent while China will reduce its own to 10 percent -- down by over 100 percentage points. STR / AFP
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China, US Slash Sweeping Tariffs in Trade War Climbdown

Under Monday's deal, the United States agreed to lower its tariffs on Chinese goods to 30 percent while China will reduce its own to 10 percent -- down by over 100 percentage points. STR / AFP
Under Monday's deal, the United States agreed to lower its tariffs on Chinese goods to 30 percent while China will reduce its own to 10 percent -- down by over 100 percentage points. STR / AFP

The United States and China slashed sweeping tariffs on each others' goods for 90 days on Wednesday, marking a temporary de-escalation in a brutal trade war that roiled global markets and international supply chains.

Washington and Beijing agreed to drastically lower sky-high tariffs in a deal that emerged from pivotal talks at the weekend in Geneva, AFP reported.

US President Donald Trump said Washington now had the blueprint for a "very, very strong" trade deal with China that would see Beijing's economy "open up" to US businesses, in an interview broadcast Tuesday on Fox News.

"We have the confines of a very, very strong deal with China. But the most exciting part of the deal ... that's the opening up of China to US business," he told the US broadcaster while aboard Air Force One on the way to the start of his Gulf tour.

"One of the things I think that could be most exciting for us and also for China, is that we're trying to open up China," he added, without elaborating.

Trump had upended international commerce with his sweeping tariffs across economies, and China has been especially hard hit.

Unwilling to budge, Beijing responded with retaliatory levies that brought new tariffs on both sides well over 100 percent.

After billions were wiped off equities and with businesses ailing, negotiations finally got underway at the weekend in Geneva between the world's trade superpowers to find a way out of the impasse.

Under the deal, the United States agreed to lower its new tariffs on Chinese goods to 30 percent while China will reduce its own to 10 percent -- down by over 100 percentage points.

'No winners'

The reductions came into effect just after midnight Washington time (0401 GMT) on Wednesday, a major de-escalation in trade tensions that saw US tariffs on Chinese imports soar to up to 145 percent and even as high as 245 percent on some products.

Washington also lowered duties on low-value imports from China that hit e-commerce platforms like Shein and Temu.

Under Trump's order, such small parcels would be hit by duties of 54 percent of their value -- down from 120 percent -- or a $100 payment.

China said Wednesday it was suspending certain non-tariff countermeasures too.

Beijing's commerce ministry said it was halting for 90 days measures that put 28 US entities on an "export control list" that bars firms from receiving items that could be used for both civilian and military purposes.

The ministry added in a separate statement that it was pausing measures which added 17 US entities to an "unreliable entity list". Companies on the list are prohibited from import and export activities or making new investments in China.

The suspension for 11 entities added on April 4 applies for 90 days, while the ministry did not specify the length of suspension for six others added on April 9.

Markets have rallied in the glow of the China-US tariff suspension.

Chinese officials have pitched themselves at a summit in Beijing with Latin American leaders this week as a stable partner and defender of globalization.

"There are no winners in tariff wars or trade wars," Chinese President Xi Jinping told leaders including Brazil's Luiz Inacio Lula da Silva. His top diplomat Wang Yi swiped at a "major power" that believed "might makes right".

'Risk of renewed escalation'

Deep sources of tension remain -- the US additional tariff rate is higher than China's because it includes a 20 percent levy over Trump's complaints about Chinese exports of chemicals used to make fentanyl.

Washington has long accused Beijing of turning a blind eye to the fentanyl trade, something China denies.

Analysts warn that the possibility of tariffs returning after 90 days simply piles on more uncertainty.

"Further tariff reductions will be difficult and the risk of renewed escalation persists," Yue Su, principal economist at The Economist Intelligence Unit, told AFP.

Trump's rollercoaster tariff row with Beijing has wreaked havoc on US companies that rely on Chinese manufacturing, with the temporary de-escalation only expected to partially calm the storm.

And Beijing officials have admitted that China's economy -- already ailing from a protracted property crisis and sluggish consumer spending -- is likewise being affected by trade uncertainty.

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Business

Egypt High-Speed Trains to Connect Red Sea, Mediterranean

Ships move through the Suez Canal, in Ismalia, Egypt, July 31, 2025. (Reuters)
Ships move through the Suez Canal, in Ismalia, Egypt, July 31, 2025. (Reuters)
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Egypt High-Speed Trains to Connect Red Sea, Mediterranean

Ships move through the Suez Canal, in Ismalia, Egypt, July 31, 2025. (Reuters)
Ships move through the Suez Canal, in Ismalia, Egypt, July 31, 2025. (Reuters)

Workers have started laying tracks in the desert east of Cairo for Egypt's first high-speed train, which will link the Red Sea and the Mediterranean in the latest attempt to modernize transport in the vast country.

Described by transport minister Kamel al-Wazir as a "new Suez Canal on rails", the project is slated to be completed in 2028, and will carry passengers and cargo the 660-kilometer (410-mile) distance in as little as three hours.

The Green Line, as it is known, is the latest of a long list of megaprojects undertaken by Egyptian President Abdel Fattah al-Sisi's government in the past decade -- the crowning jewel of which is the New Administrative Capital east of Cairo.

In 2021, Egypt signed a $4.5 billion contract with a consortium that includes German company Siemens to establish the Green Line, which will form the first of three high-speed tracks across the country.

Authorities hope the nearly 2,000 kilometer-network will carry 1.5 million passengers per day.

Egypt's existing train network -- used by a million people every day -- is plagued by infrastructure and maintenance problems that caused nearly 200 accidents last year, according to official figures.

The Green Line will run across the country's north, from Ain Sokhna on the Red Sea to Marsa Matrouh on the Mediterranean, crossing two Cairo satellite cities -- the New Administrative Capital to the east, and to the west 6th of October City, home to Egypt's only dry port.

- Urban planning bet -

According to Tarek Goueili, head of the National Authority for Tunnels, Egypt's revamped rail network will carry 15 million tons of cargo per year -- 3 percent of last year's Suez Canal transit volume.

For those behind it, the Green Line is also an urban planning bet.

"The high-speed line will ease pressure on Greater Cairo and encourage the emergence of new growth hubs," said Faical Chaabane of French company Systra, which is building the track.

In one desert station Systra showed reporters, workers on scaffolding have raised an imposing geometric ceiling over six open-air tracks.

Much of the New Administrative Capital that surrounds it is also still a construction site, home to government ministries where workers commute by bus every day.

With desert accounting for most of the country's million square kilometers, the vast majority of Egypt's 108 million people -- the Arab world's largest population -- are stacked vertically along the Nile River and its delta.

After its inauguration, the Green Line will be followed by the Blue Line, which will track the Nile linking Cairo to Aswan, and the Red Line, which will connect the Red Sea cities of Hurghada and Safaga inland to Luxor.

Business

Saudi Air Navigation: Virtual Towers Boost Efficiency, Open Control and Maintenance Roles to Saudi Women

Virtual tower operations center – Air Navigation Services (Asharq Al-Awsat) 
Virtual tower operations center – Air Navigation Services (Asharq Al-Awsat) 
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Saudi Air Navigation: Virtual Towers Boost Efficiency, Open Control and Maintenance Roles to Saudi Women

Virtual tower operations center – Air Navigation Services (Asharq Al-Awsat) 
Virtual tower operations center – Air Navigation Services (Asharq Al-Awsat) 

Saudi Arabia is accelerating digital transformation in aviation as virtual air traffic control towers enter live operations, marking a first for the Middle East. Saudi Air Navigation Services Company said the technology is among its flagship digital initiatives to enhance air traffic efficiency and prepare Saudi airspace for rapid growth.

The company has also successfully enabled Saudi women to work in air traffic control and navigation systems maintenance after completing specialized training programs.

Eng. Ahmed Al-Zahrani, Chief Strategy and Sustainability Officer, told Asharq Al-Awsat that virtual towers are a cutting-edge global technology adopted as part of the company’s broader transformation drive.

Al-Zahrani explained that a virtual tower replaces the traditional structure with a digital system built on high-definition cameras and advanced target-tracking technologies at the airport. Controllers can perform their duties without direct line-of-sight, using zoom and data overlays unavailable in conventional towers, such as flight number, passenger count, origin, and destination.

The initiative has moved beyond theory: the company has already launched the region’s first virtual tower at AlUla International Airport, operated remotely from King Abdulaziz Airport in Jeddah. The project has also won the Ministry of Transport and Logistics Services’ Innovation Award.

Al-Zahrani said that virtual towers raise controller efficiency by enabling oversight of multiple airports from a single center, while improving safety and operational performance through clearer imagery and richer data.

Beyond technology, readiness depends on continuity. The company operates two primary air traffic control centers in Riyadh and Jeddah; if one is disrupted, the other can seamlessly manage Saudi airspace without service interruption.

Since its launch in June 2016, the company has aimed to rank among regional leaders in air traffic management. Today, it is one of the region’s foremost providers and is pursuing global leadership.

Air traffic continues to expand. By the end of November, flights totaled 921,095, up 5.7% year on year. A daily record was set on June 19, 2025, with 3,673 flights, averaging 153 per hour.

On workforce development, Al-Zahrani said women have begun work as controllers and maintenance specialists, demonstrating strong performance. The company employs about 2,000 staff, over 97% Saudi nationals, and 100% Saudis in air traffic control roles.

Sustainability underpins operations across environmental efficiency, social impact through national talent empowerment, and governance via integrity and compliance. On cybersecurity, the company adheres to top international standards and recently earned the global SOC-CMM certification, measuring operations readiness across people, processes, technology, services, and business integration.

 

 

Business

US Economic Growth Surges in 3rd Quarter, Highest Rate in Two Years

Investment in artificial intelligence is expected to be a source of continued momentum for the US economy in 2026. ANDREW CABALLERO-REYNOLDS / AFP/File
Investment in artificial intelligence is expected to be a source of continued momentum for the US economy in 2026. ANDREW CABALLERO-REYNOLDS / AFP/File
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US Economic Growth Surges in 3rd Quarter, Highest Rate in Two Years

Investment in artificial intelligence is expected to be a source of continued momentum for the US economy in 2026. ANDREW CABALLERO-REYNOLDS / AFP/File
Investment in artificial intelligence is expected to be a source of continued momentum for the US economy in 2026. ANDREW CABALLERO-REYNOLDS / AFP/File

US economic growth in the third quarter came in at 4.3 percent on an annualized basis, easily topping expectations, according to Commerce Department data released Tuesday. 

The report, which also showed an acceleration in inflation, provides reassurance about the world's largest economy after other recent data showing a weakening labor market. It comes as worries have moderated over President Donald Trump's tariffs and as large tech companies advance massive investments to build new artificial intelligence infrastructure. 

The gross domestic product report -- delayed for nearly two months due to a government shutdown -- reflects increases in consumer spending, exports and government spending, partially offset by a decrease in investment, according to the department's Bureau of Economic Analysis. 

The reading, an initial estimate expected to be updated in early 2026, marks the highest GDP in two years. Analysts had expected 3.2 percent growth, according to consensus estimates from MarketWatch and Trading Economics. 

The report also showed the price index for domestic purchases rose 3.4 percent, a much higher inflation reading compared with 2.0 percent in the second quarter. 

The data suggest faster growth and higher inflation than markets had expected -- potentially changing the calculus for upcoming US monetary policy decisions. 

Trump pointed to the report as evidence that the "Trump Economic Golden Age is FULL steam ahead," the product of a "genius" policy on tariffs and "NO INFLATION," disregarding line-item aspects of the data showing otherwise. 

Other recent data has shown a weakening job market that has prompted the Federal Reserve to cut interest rates at the last three meetings, viewing the employment picture as its prime concern even as inflation has lingered above two percent. 

- 'Resiliency of US consumers' - 

Heather Long, chief economist at the Navy Federal Credit Union, wrote that the report shows the resiliency of US consumers, boding "well for 2026." 

"If the economy can avoid widespread layoffs, most American consumers can keep spending," she said. 

Joe Brusuelas, chief economist at RSM US, said the GDP data suggest that while growth has been robust, job creation remains "soft" and this dynamic "is likely to be the major economic narrative looking forward into 2025." 

The report also falls into the trend of what economists have described as "K-shaped," where consumption is driven by the wealthy, Brusuelas wrote. 

US stocks were little changed following the GDP data, as some saw lower odds that the Fed will again cut next month. 

"I think the implication is that with the GDP numbers being as strong as they are, that gives the Fed additional reason to be on hold at the January (Fed) meeting," said CFRA Research's Sam Stovall. 

While inflation remains well above the Fed's two percent target, Fed Chair Jerome Powell and other policymakers have described the weakening employment market as the greater concern at the moment. 

The Fed's median 2026 GDP forecast is 2.3 percent, up from 1.7 percent projected in 2025, according to a summary of the central bank's outlook. 

The data shows "an economy that is growing, but unevenly, one where inflation is still running well above the (Fed's) target," said Mike Fratantoni, chief economist of the Mortgage Bankers Association, who predicted just one rate cut in 2026. 

- Ebbing tariff angst - 

Tuesday's report reflects a much improved US macroeconomic outlook compared with earlier in 2025, when worries about Trump's aggressive trade policy changes weighed on sentiment. 

But by the latter stages of 2025, Trump's administration had negotiated agreements with China and other major economies that prevented enactment of the most onerous tariffs. 

Meanwhile, an AI investment boom by Chat GPT-maker OpenAI, Google and other tech giants continued to pick up momentum, keeping the US stock market near record levels. 

A December 18 outlook piece from S&P Global Ratings said AI investment would likely buoy the economy but could be offset by political uncertainty under Trump. 

"US trade policy uncertainty has settled down, but not US policy drama overall," S&P said. 

"Statutory US tariff rates may not move much in 2026, but uncertainty around laws, norms, investment rules, military actions and geopolitics more generally will remain elevated," S&P said. "This uncertainty will likely dampen investment and discretionary consumption."