China Signals Tariff Cuts, Advances in Farm Market Access After Trump-Xi Summit

An aerial view of newly imported cars parked at the automobile terminal at the Port of Los Angeles on May 08, 2026 in Wilmington, California. (Getty Images/AFP)
An aerial view of newly imported cars parked at the automobile terminal at the Port of Los Angeles on May 08, 2026 in Wilmington, California. (Getty Images/AFP)
TT

China Signals Tariff Cuts, Advances in Farm Market Access After Trump-Xi Summit

An aerial view of newly imported cars parked at the automobile terminal at the Port of Los Angeles on May 08, 2026 in Wilmington, California. (Getty Images/AFP)
An aerial view of newly imported cars parked at the automobile terminal at the Port of Los Angeles on May 08, 2026 in Wilmington, California. (Getty Images/AFP)

China and the United States have agreed to expand agricultural trade through tariff reductions and tackle non-tariff barriers and market access issues, China's commerce ministry said on Saturday after this week's summit in Beijing.

The agreements are "preliminary" and will be "finalized as soon as possible," the ministry said following US President Donald Trump's visit.

China's farm imports from the US still face an additional 10% levy after last year's rounds of tit-for-tat tariffs sharply curtailed trade, which fell 65.7% year-on-year to $8.4 billion in 2025, according ‌to US ‌Department of Agriculture data.

The commerce ministry said ‌both ⁠sides aim to ⁠promote two-way trade, including in agricultural products, through measures such as reciprocal tariff reductions across a range of goods. It did not specify which products.

China resumed purchases of some US farm goods after an October meeting, fulfilling a US-stated commitment to buy 12 million metric tons of soybeans by the end ⁠of February. It has also purchased some US ‌wheat cargoes and large ‌volumes of sorghum.

Market watchers expect a 10% cut in soybean tariffs, which could ‌allow private Chinese crushers to resume purchases that were ‌largely sidelined during last year's US harvest, when state crop traders were the only buyers.

"Tariff reductions on agricultural products would mark a normalization of China-US farm trade, allowing commercial buyers to re-enter the market," ‌said Johnny Xiang, founder of Beijing-based AgRadar Consulting.

The ministry said both sides agreed to "resolve or ⁠make substantive progress" ⁠on non-tariff barriers and market access issues.

China will work to address US concerns over registration of beef facilities and poultry exports from certain US states, it said.

Beijing on Friday granted five-year registration extensions to 425 US beef plants that had largely been shut out after their registrations lapsed last year, and approved new five-year registrations for 77 additional US facilities.

US Trade Representative Jamieson Greer said on Friday the US expects China to buy "double-digit billions" worth of US farm goods over the next three years, although neither side has yet released details on specific products, values or volume.



Mercedes Benz Mulls Diversification into Defense

President of the European Automobile Manufacturers' Association (ACEA) Ola Kallenius attends a press point in the European Parliament in Brussels, Belgium, 13 May 2026. (EPA)
President of the European Automobile Manufacturers' Association (ACEA) Ola Kallenius attends a press point in the European Parliament in Brussels, Belgium, 13 May 2026. (EPA)
TT

Mercedes Benz Mulls Diversification into Defense

President of the European Automobile Manufacturers' Association (ACEA) Ola Kallenius attends a press point in the European Parliament in Brussels, Belgium, 13 May 2026. (EPA)
President of the European Automobile Manufacturers' Association (ACEA) Ola Kallenius attends a press point in the European Parliament in Brussels, Belgium, 13 May 2026. (EPA)

The CEO of German automaking giant Mercedes-Benz has said he has not ruled out entering the defense industry.

"The world has become more unpredictable, and I think it is quite clear that Europe needs to strengthen its defense capabilities," CEO Ola Kaellenius said in an interview with The Wall Street Journal published Friday.

"If we are able to play a positive role in this area, we would be ready to do so," said Kaellenius, a German-Swedish national.

His remarks come amid Germany beefing up its military capacity in response to Russia's invasion of Ukraine in February 2022.

The German defense industry has locked onto that trend, as illustrated by the rise of arms maker Rheinmetall in recent years, with the group recently pushing into the naval and drone-making spheres.

In contrast, German automakers, such as Mercedes-Benz and Volkswagen, are battling crises, caught between tariffs and bitter Chinese competition.

In late March, the CEO of fellow German auto giant, Volkswagen, Oliver Blume, said he was "in contact" with defense companies, particularly those involved in missile defense, to convert a German factory to produce military transport equipment.

According to the Financial Times, discussions are under way with Rafael Advanced Defense Systems, the company that designed Israel's Iron Dome.

Asked by AFP to comment on Kaellenius's interview, a Mercedes-Benz spokesperson said the firm "has for many years been supplying chassis to specialized firms which equip and market them under their own responsibility and under their own brand for military applications".

"Our activities in the security and defense sector constitute a strategic development focus that we will continue to actively pursue, in collaboration with our partners," the spokesperson added.

In his Wall Street Journal interview, Kaellenius did not go into details on what kind of products Mercedes-Benz might manufacture.

He predicted that defense-related business would represent only a "minor part of Mercedes-Benz's operations" compared with auto and van manufacture.

But he added defense could be "a rapidly growing niche that could also contribute to the group's financial results."


Iraq Exported 10 Million Barrels of Oil Through Strait of Hormuz in April

 Vessels in the Strait of Hormuz, Musandam, Oman, May 15, 2026. (Reuters)
Vessels in the Strait of Hormuz, Musandam, Oman, May 15, 2026. (Reuters)
TT

Iraq Exported 10 Million Barrels of Oil Through Strait of Hormuz in April

 Vessels in the Strait of Hormuz, Musandam, Oman, May 15, 2026. (Reuters)
Vessels in the Strait of Hormuz, Musandam, Oman, May 15, 2026. (Reuters)

Iraq exported 10 million barrels of oil via the Strait of Hormuz in April, down from about 93 million barrels monthly before the Iran war, the country's new oil minister, Basim Mohammed, said at a press conference on Saturday. 

The closure of the Strait of Hormuz due to the Iran war has curtailed oil exports from the Gulf, sending prices sharply higher. 

"Exports through the Strait of Hormuz are low and depend on the arrival of ‌oil tankers, ‌which are not entering because of insurance", ‌he ⁠said in his ⁠first press conference after taking office. 

Iraq is currently producing 1.4 million barrels per day. 

The country's crude exports through the Kirkuk–Ceyhan oil pipeline resumed in March, after Baghdad and the Kurdistan Regional Government agreed on restarting flows. 

"We export 200,000 barrels through (Turkish) Ceyhan port, and we have a plan to increase it ⁠to 500,000 barrels", Mohammed said. 

PUSH TO BOOST PRODUCTION, ‌EXPORTS 

Baghdad is also in ‌talks with Ankara on a new cooperation agreement covering upstream and downstream ‌projects, expanding on a previous deal that was limited ‌to crude exports, Mohammed said. 

Iraq is in negotiations with US companies, including Chevron, ExxonMobil and Halliburton, on developing oil and gas projects, Mohammed said, urging the firms to sign contracts as soon as possible to ‌help secure significant revenues for Iraq. 

Iraq plans to engage with OPEC to boost the country’s production ⁠and export ⁠capacity, the minister said, adding that Baghdad aims to reach a production capacity of 5 million barrels per day through this dialogue. 

"We have a dialogue with OPEC to increase Iraq's export capacity. When exports increase and the ceiling opens up with OPEC, we will bring in significant financial revenues for Iraq," he added. 

Iraq has no intention of leaving OPEC or OPEC+, and supports a strong organization to ensure stable and acceptable oil prices, two Iraqi oil officials told Reuters in April after the United Arab Emirates decided to leave the group. 


Egypt, Türkiye Boost Cooperation Through Air Travel, Tourism

Turkish Airlines’ celebration on Friday marking 75 years since its first flights to Cairo. (Egyptian Ministry of Civil Aviation)
Turkish Airlines’ celebration on Friday marking 75 years since its first flights to Cairo. (Egyptian Ministry of Civil Aviation)
TT

Egypt, Türkiye Boost Cooperation Through Air Travel, Tourism

Turkish Airlines’ celebration on Friday marking 75 years since its first flights to Cairo. (Egyptian Ministry of Civil Aviation)
Turkish Airlines’ celebration on Friday marking 75 years since its first flights to Cairo. (Egyptian Ministry of Civil Aviation)

Egypt and Türkiye are strengthening their cooperation and “strategic partnership” by boosting air traffic and tourism as the two countries mark 75 years since the first flight between them.

Egyptian Minister of Civil Aviation Sameh el-Hefny said on Friday that the celebration sent “a positive message reflecting the depth of the historic and strategic relations between Egypt and Türkiye.”

He said the ties were seeing “remarkable development”, opening broader prospects for more partnerships in civil aviation, expanding operations and exchanging expertise in a way that serves the two countries’ shared economic interests.

Egyptian-Turkish relations have grown over recent years, witnessing a significant improvement, exchanges of presidential visits and the expansion of economic activities.

The minister of civil aviation took part on Friday in a celebration organized by Turkish Airlines to mark 75 years since the launch of its first flights to Cairo. The event was attended by Türkiye’s ambassador to Egypt, Salih Mutlu Sen, and aviation sector leaders from both countries.

According to a statement by the Egyptian government, the occasion comes amid the remarkable recent development witnessed by Egyptian-Turkish relations, reflecting continued coordination and a shared will to expand areas of cooperation, particularly in air transport, tourism and investment, which are key pillars for supporting regional integration and achieving sustainable development.

El-Hefny said the Turkish national carrier’s continued operation in the Egyptian market for more than seven decades “is clear testimony to the strength of bilateral relations and mutual confidence in opportunities for growth and expansion.”

The civil aviation sector is a vital track for supporting Egyptian-Turkish relations because of the opportunities it provides to boost tourism and trade, he added.

The Ministry of Civil Aviation attaches great importance to strengthening cooperation with various international airlines, in line with the Egyptian state’s vision to attract more air traffic and expand its network of links with regional and international markets, helping consolidate Egypt’s position as a key civil aviation hub in the region, he stressed.

Egypt relies on tourism as one of its most important sources of national income. The government announced last week that “monthly growth in the tourism sector has reached 20 percent since the beginning of the current year compared with the same period last year, 2025.”

The Ministry of Tourism and Antiquities also said at the time that “2025 ended with notable growth in tourism movement, reaching 21 percent compared with 2024.”

Karam Saeed, an expert on regional affairs and deputy editor-in-chief of Democracy Magazine, said the celebration marking 75 years since the first flight, preceded by celebrations of 100 years since the establishment of diplomatic relations between Egypt and Türkiye, as well as the convening of the Higher Strategic Council, were important indicators at carefully chosen times.

“Türkiye is one of the countries with abundant production of aircraft fuel, and I believe this cooperation is not separate from Egypt’s desire to benefit from this,” he told Asharq Al-Awsat.

“Türkiye may lose part of Gulf tourism because of the repercussions of the Iranian war, and therefore the Egyptian market represents an important alternative or tributary to compensate for a potential decline in Gulf and Iranian tourism to Türkiye,” he added.

Egypt and Türkiye are promising markets for tourism exchanges because of their historic and cultural proximity, he went on to say. Egypt is a suitable destination for Turkish tourists, while Türkiye offers an attractive climate for Egyptian tourists, in addition to the use of flights for commercial purposes.

The Turkish ambassador to Cairo said on Friday that “Turkish Airlines’ continued presence in the Egyptian market throughout these years reflects the strength and solidity of relations between the two countries, and demonstrates the great confidence enjoyed by the Egyptian market as one of the most important strategic markets for the Turkish national carrier in the region.”

He explained that Turkish Airlines’ journey in the Egyptian market has seen notable growth since the launch of its first flights to Cairo on May 14, 1951, at a rate of two flights per week, reaching today about 32 weekly flights from Cairo, in addition to a daily flight to Egypt’s top tourist destination, reflecting growing demand for travel between the two countries.

Turkish President Recep Tayyip Erdogan visited Cairo last February and witnessed the signing of several agreements in various fields.

During a joint press conference, his Egyptian counterpart, Abdel Fattah al-Sisi, said: “There is a convergence of views on various regional and international issues between Egypt and Türkiye.”