China Punches Back as World Weighs How to Deal with Higher US Tariffs

An aerial view of a Cosco Shipping container ship, China's largest shipping line, loaded with shipping containers in the Port Of Long Beach on April 3, 2025 in Long Beach, California. (AFP/Getty Images)
An aerial view of a Cosco Shipping container ship, China's largest shipping line, loaded with shipping containers in the Port Of Long Beach on April 3, 2025 in Long Beach, California. (AFP/Getty Images)
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China Punches Back as World Weighs How to Deal with Higher US Tariffs

An aerial view of a Cosco Shipping container ship, China's largest shipping line, loaded with shipping containers in the Port Of Long Beach on April 3, 2025 in Long Beach, California. (AFP/Getty Images)
An aerial view of a Cosco Shipping container ship, China's largest shipping line, loaded with shipping containers in the Port Of Long Beach on April 3, 2025 in Long Beach, California. (AFP/Getty Images)

Countries and industries were scrambling Friday to respond as President Donald Trump’s latest tariffs hikes upend global trade and world markets.

China took the toughest approach so far, responding to the 34% tariff imposed by the US on imports from China by matching it with a 34% tariff on imports of all US products beginning April 10.

Trump was swift to criticize Beijing's move. "China played it wrong, they panicked -- the one things they cannot afford to do," he wrote in a social media post, adding: "My policies will never change. This is a great time to get rich."

Countries were taking different approaches as they sought a way to deal with the potential disruption to trade and supply chains. Taiwan’s president promised to provide support to industries most vulnerable to the 32% tariffs Trump ordered in his "Liberation Day" reciprocal tariffs announcement.

Vietnam, where the US is a major trade partner, said its deputy prime minister would visit the US for talks on trade.

Some, like the head of the EU's European Commission, have vowed to fight back while promising to improve the rules book for free trade. Others like Britain said they were hoping to negotiate with the Trump administration for relief.

As with earlier countermoves to US trade penalties, Beijing hit back with targeted action, as well as its universal 34% tariff on all products from the US.

The Commerce Ministry in Beijing said it will impose more export controls on rare earths, which are materials used in high-tech products such as computer chips and electric vehicle batteries. Included in the list was samarium and its compounds, which are used in aerospace manufacturing and the defense sector. Another element called gadolinium is used in MRI scans.

China’s customs administration said it had suspended imports of chicken from two US suppliers, Mountaire Farms of Delaware and Coastal Processing. It said Chinese customs had repeatedly detected furazolidone, a drug banned in China, in shipments from those companies.

Additionally, the Chinese government said it has added 27 firms to lists of companies subject to trade sanctions or export controls.

For good measure, China also filed a lawsuit with the World Trade Organization, saying the US tariffs were "a typical unilateral bullying practice that endangers the stability of the global economic and trade order."

India was hit by a 26% tariff rate, lower than the 34% for Chinese exports and 46% for Vietnam. Its Commerce Ministry that it was "studying the opportunities that may arise due to this new development in US trade policy." It said talks were underway on a trade agreement, including "deepening supply chain integration."

The USwas New Delhi’s biggest trading partner in 2024 with two-way trade estimated at $129 billion, according to US data. They have set an ambitious target of more than doubling their bilateral trade to $500 billion by 2030. Most pharmaceuticals and other medicines, important Indian exports to the US, are exempt from the reciprocal tariffs.

However, diamonds and other gems, another major export industry, are subject to the higher duties.

Business groups said they viewed the challenge as a chance to improve India's competitiveness. "At a time when global trade dynamics are shifting rapidly, Indian exporters must be equipped with the right policies, strategies, and support to compete effectively," S.C. Ralkan, head of the Federation of Indian Export Organizations, said in a statement.

Most US trading partners have emphasized they hope negotiations can help resolve trade friction with Washington. Japanese Prime Minister Shigeru Ishiba said he was prepared to fly to Washington, in a last-ditch effort to forestall the 24% tariffs Trump ordered for exports from the biggest Asian US ally.

"The global trading system has serious deficiencies," the president of the EU's European Commission, Ursula von der Leyen, said Thursday while on a visit to Uzbekistan. But she chided Trump, saying that "reaching for tariffs as your first and last tool will not fix it. This is why from the onset we have always been ready to negotiate with the United States."

In Italy, Premier Giorgia Meloni told state TV she believes the 20% US tariffs on exports from Europe were wrong, but "it is not the catastrophe that some are making it out to be." Her government planned to meet next week with representatives of affected sectors to formulate plans. "We need to open an honest discussion on the matter with the Americans, with the goal, at least from my point of view, of removing tariffs, not multiplying them," Meloni said.

Vietnam's Foreign Ministry spokesperson, Pham Thu Hang, said Hanoi would keep talking with the US to "find practical solutions" as 46% U.S. tariffs threatened to decimate exports of footwear, electronics, textiles and seafood.

"If enforced, would negatively impact bilateral economic and trade relations as well as the interests of businesses and people in both countries," Hang said in comments cited by state-run media, which reported that the deputy prime minister and former finance minister Ho Duc Phoc was scheduled to visit the US for trade talks next week.

Taiwan President Lai Ching-te said he will offer the "greatest support" to industries most impacted by the new tariffs. Taiwan's trade surplus with the US is relatively high partly because the island is a major source of computer chips and other advanced technology. Lai said in a statement on his Facebook page that "We feel that this is unreasonable and are also worried about the subsequent impact these measures may have on the global economy."

Lai said he instructed Premier Cho Jung-tai to work closely with industries that are impacted and to communicate with the public about their plans to stabilize the economy.

Japan's leader Ishiba and other governments also said they were preparing countermeasures to help industries cope.

Likewise, von der Leyen said the EU was consulting with steel and auto makers, pharmaceutical companies and other industries about how to give them more "breathing space."

Looking elsewhere Trump's decision to sharply raise tariffs on countries spanning the globe is "self-defeating," Wang Huiyao, president of the Chinese think tank Center for China and Globalization, said in an interview.

The latest tariffs impose heavy burdens on some countries in Latin America, the Middle East, Africa and Asia.

It's a trade war with the world, Wang said, while China's strategy is to trade more with Southeast Asia and Latin America, with Europe, the Middle East and other developing nations.

"The likely outcome is that China will become the largest trading nation and its economy will be trading more with other nations and the US may ... become more isolated," Wang said.

Europe will work to build more bridges and as a regional economic bloc of 450 million people, larger than the United States, it also has its own huge market, said von der Leyen, the EC president.

The EU is its own "safe harbor in tumultuous times," she said.



Saudi Arabia Expands Tourist E-Visa Eligibility to Four More Countries

The tourist visa allows visitors to attend events, perform Umrah, and visit exhibitions and conferences (SPA)
The tourist visa allows visitors to attend events, perform Umrah, and visit exhibitions and conferences (SPA)
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Saudi Arabia Expands Tourist E-Visa Eligibility to Four More Countries

The tourist visa allows visitors to attend events, perform Umrah, and visit exhibitions and conferences (SPA)
The tourist visa allows visitors to attend events, perform Umrah, and visit exhibitions and conferences (SPA)

Saudi Arabia has expanded its electronic tourist visa program by adding four countries to the list of eligible nationalities: Mexico, North Macedonia, Serbia, and Bosnia and Herzegovina.

The Ministry of Tourism said the move is part of ongoing efforts to facilitate travel to the Kingdom for visitors from around the world, allowing citizens of the newly added countries to apply electronically for tourist visit visas.

The tourist visa also permits holders to attend events, perform Umrah, visit exhibitions and conferences, and visit relatives and friends, in accordance with applicable regulations and instructions.


50-Year Contracts Open New Horizons for Real Estate Investment in Saudi Arabia

A neighborhood in the Saudi capital, Riyadh (SPA)
A neighborhood in the Saudi capital, Riyadh (SPA)
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50-Year Contracts Open New Horizons for Real Estate Investment in Saudi Arabia

A neighborhood in the Saudi capital, Riyadh (SPA)
A neighborhood in the Saudi capital, Riyadh (SPA)

Long-term real estate investment models are opening new opportunities for Saudi Arabia's private sector, as the Kingdom seeks to expand partnerships with investors to develop municipal assets and transform them into mixed-use projects.

The approach is expected to enhance the appeal of the real estate market, create investment opportunities spanning decades, and attract domestic and international capital to urban development. It also aims to improve land-use efficiency, maximize the economic value of municipal assets and increase housing supply.

Riyadh Region Municipality, the Ministry of Municipalities and Housing, and the National Center for Privatization & PPP (NCP) announced the launch of the expression of interest, prequalification and proposal submission phases for a joint land investment project in northern Riyadh.

The project involves developing a plot of municipal land under a 50-year partnership with the private sector, marking the municipality's first initiative under this joint investment model.

The private-sector partner will be responsible for designing, constructing, operating and maintaining all project facilities.

Located on Zaid bin Asim Street, the strategically positioned 30,015-square-meter site benefits from flexible urban planning regulations that allow for mixed-use development, including residential, commercial, office and recreational facilities.

The project aims to deliver high-quality developments that meet growing demand, serve local residents and community needs, and strengthen Riyadh's urban infrastructure.

Long-Term Investment Strategies

Offering investment opportunities through contracts extending up to 50 years represents a shift in how Saudi Arabia develops government-owned real estate assets.

The model gives private-sector investors a longer timeframe to develop projects and implement long-term investment strategies, overcoming some of the limitations associated with short- and medium-term contracts.

It also strengthens investors' ability to undertake financial and operational planning, allowing them to recover development costs and generate investment returns over a longer period.

This could make such opportunities more attractive to real estate companies and institutional investors.

The project forms part of Riyadh Region Municipality's strategy to improve the efficiency of municipal asset management, expand private-sector participation in urban development and attract high-value investments.

These efforts are intended to promote sustainable urban development, keep pace with the capital's rapid growth and advance Saudi Vision 2030 objectives, in line with the municipality's ambition to help create a prosperous, sustainable Riyadh with a higher quality of life.

Project Sustainability

Real estate expert Khaled al-Mobid said the launch of a 50-year investment project in Riyadh's Al-Narjis district represents an important step toward enabling the private sector to develop real estate assets and transform them into sustainable projects with substantial economic value.

Speaking to Asharq Al-Awsat, he explained that the extended investment period encourages developers to improve construction quality and services while enhancing the financial viability of projects.

He added that the model could help diversify real estate offerings and increase supply in one of the capital's most expensive neighborhoods.

Al-Mobid said the project's significance lies less in its immediate impact on property prices than in its potential to establish a replicable investment model.

Such a model, he noted, could gradually increase supply, strengthen competition and contribute to greater price stability across Riyadh's real estate market.

Diversifying Real Estate Supply

Real estate developer Ahmed Omar Basoudan said the importance of these contracts extends beyond simply making land available to investors.

They also create opportunities to develop integrated real estate assets combining residential, commercial, office and recreational uses, increasing the economic value of land and improving its utilization.

Speaking to Asharq Al-Awsat, Basoudan explained that bringing design, construction, operation and maintenance together under a single investment framework allows for more integrated developments.

It also creates a stronger link between construction quality, operational efficiency and long-term sustainability.

At the broader market level, he said, the model could help diversify real estate offerings, particularly in major cities experiencing rapid urban expansion and rising demand for residential, commercial and office space.

The participation of new developers and operators could also strengthen competition and improve the quality of projects and services.

Moreover, the approach could create integrated mixed-use urban destinations that meet residents' needs and support economic activity, rather than relying solely on conventional real estate development.

 

Replicating the Model

 

According to Basoudan, the success of this investment model will depend on how effectively contracts are structured, how risks are allocated between government entities and investors, and how clearly development, operation and maintenance obligations are defined.

Equally important, he said, is striking an appropriate balance between investment returns and the public interest.

Basoudan believes extending the model to other municipalities and regions could create an additional channel for attracting domestic and international investment.

It could also strengthen private-sector participation in urban development, in line with Saudi Vision 2030 objectives to diversify the economy and improve the efficiency of government asset management.


Gold Rallies as Dollar, Treasury Yields Soften after US Midterm Results

Gold chips displayed at a state-owned gold retail store in Surabaya, East Java (AFP)
Gold chips displayed at a state-owned gold retail store in Surabaya, East Java (AFP)
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Gold Rallies as Dollar, Treasury Yields Soften after US Midterm Results

Gold chips displayed at a state-owned gold retail store in Surabaya, East Java (AFP)
Gold chips displayed at a state-owned gold retail store in Surabaya, East Java (AFP)

Gold climbed to its highest level in over two weeks on Thursday as the fallout from the US midterm election results rippled through the global financial and oil markets.

Spot gold rose 1.6% to $4,124.89 per ounce by 0752 GMT. It touched $4,146.63 per ounce, its highest level since October 20, earlier in ‌the session.

Bullion ‌climbed about 3.4% on Wednesday, its biggest ‌daily gain ⁠since August 19.

US ⁠gold futures for December delivery climbed 1.5% to $4,135.40, Reuters said.

A weaker dollar and lower Treasury yields have helped gold recover above the key $4,000 level, though holding above that threshold remains crucial for the recovery outlook, said Linh Tran, market analyst at XS.com.

"If investment flows and yield movements continue to provide support, gold could stabilize ⁠above $4,000, also opening up an opportunity for a ‌recovery toward $4,200, followed by $4,400."

Oil prices ‌were slightly higher after earlier falling for a fourth day on ‌expectations that the losses US President Donald Trump's Republican Party ‌suffered in congressional elections this week may reduce the risk of further escalation of the US-Israeli war with Iran.

Lower energy prices ease inflationary pressures, reducing expectations that the central bank will keep interest rates higher ‌for longer, supporting the appeal of non-yielding bullion.

The dollar slid to its lowest in more ⁠than a ⁠month, and 10-year US Treasury yield fell to its lowest since September 10.

A weaker dollar makes greenback-priced bullion more affordable for holders of other currencies.

Market participants now await the US non-farm payrolls report on Friday to further gauge the Federal Reserve's monetary policy outlook.

Meanwhile, Citi has a 0-3 month price target of $4,500 per ounce for gold, the brokerage said on Wednesday, as it sees substantial upside potential if the Strait of Hormuz reopens and the Yemen/Saudi conflict de-escalates.

Among other metals, spot silver rose 0.8% to $52.63 per ounce, platinum gained 1.2% to $1,514.20 and palladium climbed 2.2% to $1,026.83.