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China has, as expected, hit back at Donald Trump’s imposition of a 10% tariff on its exports to the United States.

Beijing has slapped levies of between 10-15% on a range of energy products that imports from the US.

But what has surprised observers – particularly when Mr Trump kicked off the trade war over the weekend – has been the president’s comparatively lenient treatment of China and, moreover, Beijing’s calm response.

While America’s two closest neighbours, Canada and Mexico, were hit with 25% tariffs (falling to 10% for Canadian energy exports) – since put on ice – China was merely hit with a 10% levy.

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That struck many observers as curious since China is regarded as a bigger trade adversary by the US than Mexico and Canada, with the latter traditionally seen as a close friend to the US, particularly through the pair’s involvement in the ‘Five Eyes’ security alliance along with Australia, New Zealand and the UK.

The big question raised by this is what motivated Mr Trump to do this.

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The thinking is that the president was trying to bring China to the negotiating table and that, by initially hitting a close ally like Canada harder, he was trying to send a message to China’s leaders as to what they might face further down the line.

That impression was reinforced by Mr Trump’s overnight description of his 10% tariff on China as an “opening salvo”.

Why is China so calm?

That is not the only curiosity concerning this affair.

The other is the relatively calm response from Beijing. While Canada immediately responded with retaliatory measures and Mexico indicated that it would, China merely murmured in the first instance about taking “necessary countermeasures” and indicated that it would raise a complaint about the US with the World Trade Organisation.

Since then, Beijing has of course hit back with tariffs of its own on US energy imports, as well as launching an antitrust investigation into Google and adding the parent company of Tommy Hilfiger and Calvin Klein on a blacklist of “unreliable entities”.

That gives Chinese president Xi Jinping something to take back off the table if, as expected, he speaks to Mr Trump in coming days as the pair seek to de-escalate this row.

But it all feels relatively restrained and raises the question of why China has responded in this way.

There is certainly a view in Beijing that, with Mr Trump’s first moves, China got off rather lightly compared with the Canadians and Mexicans.

That sanguine response may also indicate that Beijing knows it has other weapons it can deploy other than retaliatory measures.

Cards in China’s back pocket

For a start, China owns $769bn worth of US Treasury bonds. Dumping some of those aggressively – while hurting the Chinese – would push up America’s implied borrowing costs.

Alternatively, Beijing could allow its currency, the renminbi, to weaken on the foreign exchange markets, just as it did during Mr Trump’s first term of office.

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Trump tariffs: What is America’s trade position?

Either way, Mr Trump’s latest measures are unlikely to change the way Chinese businesses operate, particularly the country’s manufacturers.

They have become accustomed over several years, dating back to Mr Trump’s first term, to aggression from the US. They have adapted the way they do business accordingly, for example by shipping a lot of their exports to the US via third countries, most notably Vietnam.

Chinese businesses relieved

Even Chinese companies specifically targeted by Mr Trump – the e-commerce giants Temu and Shein – may not be too badly affected.

They were both singled out as the president closed the so-called “de minimis” loophole, dating back to 1938, which allows goods worth less than $800 to be sent directly to US consumers without incurring import duties or rigorous customs inspections.

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This has been a constant thorn in the side of US retailers and its removal helps explain why, for example, shares of Walmart were on Monday spared the spanking meted out to other US stocks.

Yet Shein and Temu are said to be taking the news calmly.

They may even be calculating that this is a short-term squall that will soon blow over – or calculating that, such is the enormity of their buying power and supply chains, they can simply ship inventory elsewhere in the meantime or even just warehouse it.

It is also worth noting that Shein, having been banned by India in 2020, has just begun selling in the country again.

Overall, then, Chinese businesses have reacted with relief to what has happened. They know it could have been worse.

It explains why, even though the Chinese economy is presently misfiring, the authorities in Beijing have reacted relatively calmly to what Mr Trump has done.

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Suspect who targeted fire service in ‘ambush’ shooting named as aspiring firefighter

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Suspect who targeted fire service in 'ambush' shooting named as aspiring firefighter

A gunman suspected of having started a fire to “ambush” firefighters in Idaho and kill them has been named as Wess Val Roley.

The 20-year-old is said to have aspired to become a firefighter before the attack on Sunday, which saw him allegedly perched in a sniper position, firing at the firefighters as they sought to put out a fire, which authorities believe he intentionally started.

Two firefighters were killed and one was injured as they came under gunfire over several hours, according to authorities.

An armoured police vehicle where multiple firefighters were attacked when responding to a fire.
Pic: Reuters
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An armoured police vehicle near where the firefighters were attacked. Pic: Reuters

They said the incident took place after they asked him to move his vehicle.

Roley was later found dead in the mountains with a firearm nearby.

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Sky News’ US partner network NBC quoted Roley’s grandfather, Dale Roley, as saying “something must have snapped” in his grandson for him to commit such violence.

“He actually really respected law enforcement,” Mr Roley said. “He loved firefighters. It didn’t make sense that he was shooting firefighters. Maybe he got rejected or something.”

Mr Roley added: “I know he had been in contact to get a job with a fire department.

“He wanted to be part of a team that he sort of idolised.”

Bob Norris, the sheriff of Kootenai County, said on Sunday: “We do believe that the suspect started the fire.

“This was a total ambush. These firefighters did not have a chance.”

Smoke billows into the air after several firefighters were attacked while responding to a fire. Pic: Reuters
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The firefighters were responding to a blaze. Pic: Reuters

Officers said they were “taking sniper fire” near the city of Coeur d’Alene on Sunday afternoon, with crews responding to a fire at Canfield Mountain.

Mr Norris said the gunman had used high-powered sporting rifles to fire rapidly at first responders. The ambush continued for several hours.

More than 300 officers from city, county, state and federal levels responded. Two helicopters were deployed with snipers onboard.

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First responders could be heard making urgent calls for help on their radios. “Everybody’s shot up here… send law enforcement now,” one dispatch said.

Later, the sheriff’s office said members of a SWAT team “located a deceased male on Canfield Mountain”, adding that a “firearm was found nearby”.

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Trump takes aim at Fed chair Jerome Powell again and says he ‘should be ashamed’

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Trump takes aim at Fed chair Jerome Powell again and says he 'should be ashamed'

Donald Trump has launched his latest attack on the US central bank, saying the interest rate setters had “failed”.

Over the weekend, he said he wanted interest rates to be 1% and that he would “love” for Jerome Powell, the chair of the Federal Reserve, to resign.

It comes less than two weeks since he called Mr Powell a “stupid person” and said: “Maybe I should go to the Fed. Am I allowed to appoint myself at the Fed?”

In a post on his Truth Social platform on Monday, Mr Trump said: “Jerome ‘Too Late’ Powell, and his entire board, should be ashamed of themselves for allowing this to happen to the United States.”

It was not clear what Mr Trump was referring to when referencing “this”.

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“If they were doing their job properly, our country would be saving trillions of dollars in interest cost. The board just sits there and watches, so they are equally to blame,” the post read.

“We should be paying 1% interest, or better!”

A message to Mr Powell was also written on a leaderboard of countries’ interest rates, ranked from low to high, showing the US ranked 35th, coming behind the United Arab Emirates and the UK.

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The Federal Reserve, known as the Fed, had held the cost of borrowing at 4.25%-4.5%. Unlike the UK, the US interest rate is a range to guide lenders rather than a single percentage.

Despite the threats from Mr Trump and from his press secretary Karoline Leavitt, who told reporters inflation was “completely diminished”, markets are not expecting a cut when the Fed next considers interest rates next month.

In fact, no reduction is currently anticipated until September.

Are interest rates really that high in the US?

Not since December last year has the rate been cut.

The Fed has expressed concern about the impact of Mr Trump’s signature economic policy of implementing new tariffs, taxes on imports to the US.

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Trump’s tariffs: What you need to know

Inflation – the overall rate of price rises – has ticked up to 2.4% while the Fed said it expected further rises due to tariffs.

Interest rates have been hiked in an effort to bring inflation down to the Fed’s 2% target.

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It has meant the cost of borrowing is slightly higher than in the UK, where the Bank of England has set rates at 4.25%.

It’s also above the level of euro-using countries, where the European Central Bank has set rates at 2%.

What’s the reaction been?

Mr Powell has not retaliated, and the Fed declined to comment on Monday.

There was little market reaction as major US stock indexes had hit record highs amid hopes of trade deals with countries, rather than a return of country-specific tariffs.

Ironically, the dollar has been at a more than three-year low over worries of the US deficit expanding further with Mr Trump’s so-called “Big, Beautiful Bill” being voted on.

The fact that interest rate cuts could come in recent months is also contributing, as currencies tend to be supported by higher rates as they can attract foreign investment.

In the past, comments about replacing Mr Powell, appointed by President Trump in 2017, have led to concern from investors, which saw Mr Trump say he would not replace the chair before his term ends in May 2026.

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Donald Trump says ‘very wealthy group’ has agreed to buy TikTok in the US

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Donald Trump says 'very wealthy group' has agreed to buy TikTok in the US

Donald Trump has said the US government has found a buyer for TikTok that he will reveal “in about two weeks”.

The president told Fox News “it’s a group of very wealthy people”, adding: “I think I’ll probably need China approval, I think President Xi will probably do it.”

TikTok was ordered last year to find a new owner for its US operation – or face a ban – after politicians said they feared sensitive data about Americans could be passed to the Chinese government.

The video app’s owner, Bytedance, has repeatedly denied such claims.

It originally had a deadline of 19 January to find a buyer – and many users were shocked when it “went dark” for a number of hours when that date came round, before later being restored.

However, President Trump has now extended the deadline several times.

The last extension was on 19 June, when he signed an executive order pushing it back to 17 September.

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Mr Trump’s latest comments suggest multiple people coming together to take control of the app in the US.

Among those rumoured to be potential buyers include YouTube superstar Mr Beast, US search engine startup Perplexity AI, and Kevin O’Leary – an investor from Shark Tank (the US version of Dragons’ Den).

Bytedance said in April that it was still talking to the US government, but there were “differences on many key issues”.

It’s believed the Chinese government will have to approve any agreement.

The president said the identity of the buyer would be disclosed in about two weeks. Pic: Fox News
Image:
The president said the identity of the buyer would be disclosed in about two weeks. Pic: Fox News

President Trump’s interview with Fox News also touched on the upcoming end of the pause in US tariffs on imported goods.

On April 9, he granted a 90-day reprieve for countries threatened with a tariff of more than 10% to give them time to negotiate.

Deals have already been struck with some countries, including the UK.

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The president said he didn’t think he would need to push back the 9 July deadline and that letters would be sent out imminently stating what tariff each country would face.

“We’ll look at the deficit we have – or whatever it is with the country; we’ll look at how the country treats us – are they good, are they not so good. Some countries, we don’t care – we’ll just send a high number out,” he said.

“But we’re going to be sending letters out starting pretty soon. We don’t have to meet, we have all the numbers.”

The president announced the tariffs in April, arguing they were correcting an unfair trade relationship and would return lost prosperity to US industries such as car-making.

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