Donald Trump Tariff Live Updates: India offered to drop tariffs to zero on US goods, says Trump

Britain's economy grew more than expected in the first quarter, official data showed Thursday, covering the period before business tax hikes and US President Donald Trump's tariffs blitz took effect.

Gross domestic product rose 0.7 per cent in the January-to-March period after only growing slightly in the final quarter of last year, the Office for National Statistics said in a statement.

It beats economists' expectations of a 0.6 percent increase.

Finance minister Rachel Reeves welcomed the news, saying the figures "show the strength and potential of the UK economy," while acknowledging that "there is more to do".

But analysts cautioned that the bumper growth may not be sustained.

In a major development, Pakistan has offered a zero-tariff bilateral trade agreement to the United States, according to a media report on Thursday. Geo News reported the development, quoting government sources.

"Pakistan is offering to enter into a bilateral agreement with zero tariffs on selected tariff lines, with mutual interests, to expand bilateral trade across multiple sectors," a high-level source told the channel when asked about the new policy offered to the US.

The development comes after US President Trump claimed that he brokered a "ceasefire" between Pakistan and India.

He also lauded the leadership of both countries and said he would be doing "a lot of trade" with both.

Walmart's CEO warned Thursday of higher prices due to tariffs, welcoming a de-escalation of US President Donald Trump's trade war with China but saying the levies remain too high for the retailer to absorb.

"We will do our best to keep our prices as low as possible but given the magnitude of the tariffs, even at the reduced levels, we aren't able to absorb all the pressure," Chief Executive Doug McMillon told investors.

The Congress on Thursday questioned Prime Minister Narendra Modi for his "total silence" and sought an "explicit answer" from the government after Donald Trump claimed India has offered the United States a "zero-tariff deal" on a reciprocal basis.

"The commerce minister is in Washington DC and President Trump has made yet another grand announcement from Doha. There is 'total chuppi' from our PM. What has he agreed to and what linkage is there between this and the stoppage of Operation Sindoor?" Congress general secretary in-charge communications, Jairam Ramesh, wrote on X.

Congress MP Manish Tewari posted, "Is it a fact that India has offered a zero tariff deal to the United States? That needs an explicit answer from the government."

The Asia-Pacific Economic Cooperation (APEC) on Thursday warned its 21 member nations that the region would not witness much growth in trade this year owing to the US trade tariff drama, reports Reuters.

In its latest Regional Trends Analysis report, the region is expected to see a very modest rise in trade of only 0.4 per cent this year, after rising 5.7 per cent in 2024. Meanwhile, APEC also slashed its regional economic growth projection to 2.6 per cent this year from 3.3 per cent last year.

"Trade growth is set to decline sharply across APEC due to lower external demand, particularly in manufacturing and consumer goods, while rising uncertainty over goods-related measures weighs on services trade," APEC said in a statement.

US President Donald Trump suggested that India offered to drop tariffs on US goods to zero, something not confirmed by India. Trump made the comments during a business roundtable in Doha, Qatar, on his Mideast tour, first discussing Apple's plans to build manufacturing plants for its iPhone there.

"It's very hard to sell into India and and they've offered us a deal with what basically they're willing to literally charge us no tariff," Trump said.

India is a close partner of the US and is part of the Quad, which is made up of the US, India, Japan and Australia, and is seen as a counterbalance to China's expansion in the region.

President Donald Trump's rollercoaster tariff row with Beijing has wreaked havoc on US companies that rely on Chinese manufacturing, with a temporary de-escalation only expected to partially calm the storm, analysts and business owners say.

"The only option is to try to keep your head above water and be tossed by the waves, or to go out of business," said Anna Barker, whose Mississippi-based firm Glo sells luminous toys designed in the United States and made in China.

She told AFP that the 90-day reprieve beginning Wednesday is just a mere "blip on the radar." Placing orders, manufacturing products and shipping them to the United States takes much longer.

Trump's escalating trade war since his return to office saw US duties on Chinese goods -- including toys -- reach a whopping 145 percent, while Beijing's countermeasures hit 125 percent.

The world's two biggest economies however agreed at talks last weekend in Switzerland to temporarily lower the levies, bringing US tariffs down to 30 percent and China's corresponding duties to 10 percent.

While cautiously optimistic about the ongoing negotiations, Barker warned the 30 percent rate remains "massive for a small company."

Trump has argued that companies will enjoy zero tariffs if they manufacture in the United States, overlooking costs for any machinery or raw materials that would still need to be imported.

"We're an American company," Barker said. "Our biggest priority, if it was just up to us, will always be the US market. But it simply can't be right now."

To stay afloat, she is looking abroad for growth. (AFP)

"Tariff announcements and heightened uncertainty about government policies in general are the dominant economic developments of more recent weeks and have caused me to look carefully at my forecasts," Fed Vice Chair Philip Jefferson told a conference in New York, according to prepared remarks.

Noting the "supply chain disruptions related to trade policy changes," and "high" uncertainty, Jefferson said he has cut his growth forecast for 2025, but still expects growth to remain positive.

Jefferson is one of 12 voting members on the Fed's rate-setting committee, which has its next meeting in June.

China said on Wednesday it was suspending some non-tariff countermeasures after Beijing and Washington agreed over the weekend to lower tariffs on each other's imports in another de-escalation of their trade war.

Beijing will suspend certain restrictions on dozens of US entities for 90 days "to implement the consensus reached at the China-US high-level economic and trade talks", a spokesperson for the Chinese commerce ministry said in an online statement.

Hollywood star Robert De Niro slammed US President Donald Trump as he accepted a lifetime achievement award at the Cannes film festival.

The "Taxi Driver" and "Goodfellas" star lambasted Trump for threatening tariffs on movies "produced in foreign lands".

"And now he has announced 100 percent tariffs on film production outside of America. You can't put a price on creativity. But apparently, you can put a tariff on it. Of course, all these attacks are unacceptable. This is not just an American problem, it is a global one," he added.

"We can't just all sit back and watch. We have to act, and we have to act now," he urged.

Japan's Sony on Wednesday reported a record annual net profit but issued a cautious forecast, saying it hopes to "manage the impact" of US trade tariffs on its business.
The entertainment and electronics giant said takings had been strong in the gaming, music and image sensor sectors in the year to the end of March 2025.

But US President Donald Trump's sweeping trade levies have made the business environment less predictable, including for global conglomerates such as Sony Group.

"We currently expect to be able to manage the impact on the profitability to approximately 100 billion yen ($680 million), or less than 10 percent of the operating income forecast," the company said.

The firm's PlayStation 5 console production was "not in a tight spot" despite the tariffs, but Sony was monitoring Trump's plan for a 100 percent tariff on films produced outside the United States, said president and chief executive officer Hiroki Totoki.

For chipmaking powerhouses South Korea and Taiwan, the consequences could be enormous.

South Korea is home to Samsung Electronics and SK hynix, while Taiwan hosts the world's largest contract chipmaker, TSMC. Collectively, they produce a significant chunk of high-end chips that have become the lifeblood of the global economy, powering everything from smartphones to missiles.

Taiwan exported $7.4 billion worth of semiconductors to the United States in 2024, while South Korea's exports surged to $10.7 billion, a historic high.

Experts say the spectre of looming tariffs has spurred stockpiling, with fears levies will drive up consumer prices and hurt chipmakers.

Both India and the United States are making significant headway in reducing bureaucratic obstacles affecting trade in various commodities between the two nations.Over the past two weeks, substantial developments have happened to streamline the import of American apples and other food products, whilst also addressing challenges faced in exporting Indian shrimp to the United States.

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

"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.

While Beijing and Washington agreed to ease tariffs temporarily, China expressed strong displeasure over US actions tying drug control to trade penalties.

Spokesperson Lin Jian said the fentanyl crisis is not China’s responsibility and warned that such moves threaten hard-won progress in bilateral cooperation.

Experts say the reduction in US tariffs will boost low-value parcel volumes again, though likely not to previous levels.

Platforms like Shein and Temu, which paused or adjusted shipments after a duty-free rule ended May 2, may now resume more activity as the new 54% rate and $100 flat fee make imports less costly.

Following weekend talks in Switzerland, the US has lowered its steep tariffs on Chinese imports from 145% to 30%.

China responded by cutting its own tariffs on US goods to 10%. The reduced rates, however, are temporary and set for a 90-day review as negotiations continue.

Online shoppers in the US will benefit from a major tariff reduction on low-value parcels from China after the Trump administration lowered import duties from 120% to 54%.

A flat $100 rate will also remain in place, easing costs for purchases from popular platforms like Shein and Temu. The changes take effect Wednesday.

The Trump administration has intensified its actions against Harvard University by cutting an additional $450 million in federal grants, on top of the previously frozen $2.2 billion. This decision was announced by the White House's Joint Task Force to Combat Anti-Semitism, which criticized Harvard for fostering an environment of “virtue signalling and discrimination.” The statement claimed that the university had failed to prioritize accountability and forfeited its right to federal funding.

This move is part of a larger conflict between the Trump administration and elite universities, especially concerning diversity programs, admissions, and financial control. Other universities like Columbia and Ohio State have also faced similar cuts. The funding dispute began after Harvard did not comply with the administration's demands, including reforms in governance and policies on anti-Semitism. In response, Harvard filed a lawsuit, asserting its independence and constitutional rights. The funding freeze will remain in place until a court hearing scheduled for late July. Meanwhile, Harvard is facing investigations into civil rights violations and its diversity practices.

Wall Street stocks mostly rose on Tuesday, extending gains from the previous day, as oil prices also climbed. Investors were optimistic following a US-China trade agreement to ease tensions, with both countries agreeing to reduce tariffs for 90 days while they negotiate further. The Nasdaq led the way with a 1.6% gain, while the S&P 500 also finished higher. However, the Dow saw a decline due to weak performance in UnitedHealth Group shares.

Oil prices increased by more than two percent, with traders expecting higher demand. The consumer price index showed a slight drop in inflation, easing to 2.3% in April, slightly below the March figure. This weaker inflation data raised expectations that the Federal Reserve might cut interest rates. In Europe, stock markets showed modest gains, while Asian markets saw strong rises, though Hong Kong dropped on profit-taking. In Japan, Nissan announced a $4.5 billion annual loss and plans to cut 15% of its workforce as it deals with restructuring challenges.

India's intention to implement reciprocal import duties on select US products, in response to American levies on steel and aluminium, could potentially affect the current trade negotiations between both nations, the Global Trade Research Initiative (GTRI) stated on Tuesday.

The think tank's analysis suggests that a resolution could be achieved if the US initiates discussions with India or removes the existing tariffs. Should this not occur, India is expected to proceed with its retaliatory duties by early June, potentially affecting US exports and heightening trade-related tensions.

US inflation showed signs of moderation for the third straight month in April, primarily due to lower prices for groceries and petrol, despite the initial impact of recently implemented tariffs. However, economic experts warn about potential price increases in upcoming months when trade duties fully impact the economy.

The Labour Department reported on Tuesday that consumer prices increased by 2.3% compared to the previous year in April, showing a decline from March's 2.4%, marking the lowest rise in over four years. The monthly data indicated a modest 0.2% increase from March to April, following a 0.1% decrease in the preceding month, which was the first reduction in five years.

The cost of groceries decreased by 0.4%, influenced significantly by a substantial 12.7% reduction in egg prices. According to government data, this represented the most significant decrease in at-home food costs since September 2020.

Boeing delivered 45 commercial aircraft in April, a slight increase from March’s 41. However, deliveries to China were severely impacted by the US-China trade dispute, with only two planes sent to Chinese customers. CEO Kelly Ortberg confirmed last month that deliveries to China had halted due to political tensions. Although a recent US-China tariff truce has prompted Beijing to begin lifting the delivery ban, the timeline remains uncertain. The China freeze came amid escalating rhetoric from President Trump and a sharp response from Beijing.

Growing concerns among US businesses and Republicans about the economic impact of the tariffs, especially ahead of the midterm elections, played a key role in pushing for a resolution.

Chinese officials see the deal as a strategic win, as it grants China many of its demands without any significant economic reforms from Beijing.

The tariff rollback triggered a positive reaction in global markets, easing anxiety among investors and business communities globally.

In a major move, the US has agreed to cut its tariffs on Chinese goods to 30%, down from 145%, for a 90-day period, as part of the Geneva agreement.

After months of heightened tensions and tariff hikes, the US and China have reached a significant de-escalation agreement, reducing tariffs substantially on each other’s goods.