The US has imposed tariffs on most countries except China, which was not granted a grace period. The US market is expected to handle the tariffs moderately, with some sources suggesting that increases are likely but should remain moderate. Beijing is monitoring potential deals with other countries like India and Indonesia during the grace period before determining its next steps. China has strengthened economic ties beyond the US and advanced domestic self-reliance initiatives, making its high-end manufacturing increasingly indispensable in the global supply chain. The US administration lacks cohesion, with President Trump's personal decision-making taking precedence over structured policy discussions. Despite claims of communication between the two sides, no formal talks have begun, and Beijing has denied a claim that Chinese President Xi Jinping had reached out to Trump.
https://www.malaymail.com/news/money/2025/05/01/beijing-delays-us-trade-talks-amid-trump-team-divisions-eyes-tariff-fallout-in-july/175159US Trade Representative Jamieson Greer contradicted Trump's claims of ongoing US-China trade war consultations, stating that no official talks are underway. However, Greer emphasized Washington's desire for a fair trade relationship with China, citing concerns over foreign trade practices that harm the US economy. This comes as the US Commerce Department reported a 0.3% decline in the nation's gross domestic product in the first quarter, marking the first contraction in three years.
https://www.scmp.com/news/china/diplomacy/article/3308635/trump-believes-good-chance-china-trade-deal-us-envoy-says-no-talks-under-way?module=top_story&pgtype=sectionChinese President Xi Jinping was received by Ren Hongbin, chairman of the China Council for the Promotion of International Trade, during a visit to promote bilateral trade ties.
https://www.globaltimes.cn/page/202505/1333231.shtmlPakistan's arsenal against India has been bolstered by its acquisition of Chinese arms, with Bangladesh playing a key role in facilitating these deals. The country's relations with China have strengthened under Prime Minister Sheikh Hasina, who has moved to improve ties with Pakistan following her exit from office. Bangladesh and Pakistan held their first foreign secretary-level talks in nearly 15 years, focusing on bilateral and historical issues, including the 1971 war. Fazlur Rahman, a retired army officer, has led efforts to expose what he claims is a "foreign conspiracy" behind the 2009 Pilkhana massacre, which killed 57 people, including 54 soldiers of the Bangladesh Rifles.
https://www.firstpost.com/world/bangladesh-should-occupy-ne-states-if-india-attacks-pakistan-yunus-aide-on-pahalgam-13884732.htmlBangladesh is seeking to expand its economic ties with Southeast Asia by applying to join the ASEAN bloc, while also exploring a potential Free Trade Agreement with China through the Regional Comprehensive Economic Partnership (RCEP). A joint feasibility study has been exchanged between the two sides, indicating a growing interest in strengthening trade relations.
https://www.tbsnews.net/economy/china-offers-trade-pact-boost-investment-supply-chain-ties-1130911The Bank of Japan lowered its growth forecasts to 0.5% for 2025-26 due to US tariffs, causing the yen to drop by 0.8% to 144.23 per dollar, its weakest since mid-April. The move was seen as reducing the likelihood of future interest rate hikes. Investors are watching for signs of a trade war cooling and await US employment data, with President Donald Trump hinting at deals with China, India, South Korea, and Japan. The dollar rebounded against the yen, euro, and sterling, while the Australian and New Zealand dollars remained steady.
https://www.brecorder.com/news/40360492/yen-slides-as-tariffs-keep-boj-on-holdThe Bank of Japan (BOJ) kept interest rates steady at 0.5% as it slashed its growth forecasts due to the impact of higher US tariffs on global demand, clouding Japan's fragile economic recovery. The decision was seen as dovish by market analysts, leading to a surge in buying of Japanese government bonds, causing the 10-year JGB yield to fall to a three-week low of 1.26%. This move came ahead of critical tariff talks between Japan and the US, with trade negotiator Ryosei Akazawa set to visit Washington soon.
https://www.brecorder.com/news/40360479/jgb-yields-slide-after-boj-cuts-economic-growth-forecastsCanada's economy has struggled in recent years, with its largest trading partner and closest geographical neighbour, the US, playing a significant role in Ottawa's foreign policy. Conservative Party leader Pierre Poilievre lost his seat after his Trump-style rhetoric failed to resonate with Canadians, who instead rallied behind Liberal leader Justin Trudeau. The US-Canada relationship remains tense, with President Donald Trump's comments on Canada triggering a nationalist backlash. New Prime Minister Anand Sharma faces the challenge of governing amid this strained relationship and must navigate issues like trade, tariffs, and resource sharing. Diversification may be necessary for Canada, which relies heavily on US markets, but relations with China and India are currently low due to a diplomatic standoff over the past year.
https://www.ndtv.com/opinion/will-carneys-canada-finally-make-nice-with-india-8302659Chinese diplomat Wang expressed support for Iran's diplomatic efforts and appreciated its commitment not to develop nuclear weapons. He also praised ongoing dialogue between Iran and other parties, while China supports Iran's cooperation with the International Atomic Energy Agency. This comes as US President Donald Trump has threatened military action if Iran doesn't strike a deal on its nuclear programme, which will be discussed in Rome on Saturday.
https://www.brecorder.com/news/40360473/chinas-top-diplomat-backs-irans-nuclear-diplomacy-ahead-of-us-talks