President Donald Trump has said it’s “extremely hard” to reach a deal with his Chinese counterpart Xi Jinping, denting hopes for a call between the two leaders as trade talks stall.

“I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!” Trump posted on Truth Social in the early hours of Wednesday.

China responded to Trump’s claim on Friday that it has “totally violated its agreement” with the US, in turn accusing the US of breaching the agreement and vowing to protect its interests. The US-China detente — reached earlier this month, when each country eased sky-high tariffs on the other — has been looking more fragile amid both trade-related and other tensions.

Trump’s trade war is causing the global economy to slow, with growth now heading for its weakest pace since the COVID-19 pandemic, the OECD has warned.

The OECD cut its forecasts for most G20 economies and warned that easing trade tensions is key to boosting investment and keeping prices stable.

The warning comes as the US is pushing countries to speed up trade talks. The White House has confirmed that the US had sent a letter to partners as a “friendly reminder” that Trump’s self-imposed 90-day pause on sweeping “reciprocal” tariffs is set to expire in early July.

White House advisers have for weeks promised trade deals in the “not-too-distant future,” with the only announced agreement so far coming with the United Kingdom.

But US tensions with China and the EU — two key trade partners — amped up after Trump promised last weekend to double tariffs on steel and aluminum from 25% to 50%.

US trade talks with the EU have come back into focus as an early-July deadline looms for Trump’s 50% tariffs on imports from the bloc.

With US and EU negotiators, Jamieson Greer and Maroš Šefčovič, meeting in Paris today, all eyes are on whether a deal will be made.

Meanwhile, Trump’s most sweeping tariffs face legal uncertainty after a federal appeals court allowed the tariffs to temporarily stay in effect, a day after the US Court of International Trade blocked their implementation, deeming the method used to enact them “unlawful.”

Administration officials also hinted that court rulings would not be the final say. Yahoo Finance’s Ben Werschkul has an overview of the other maneuvers Trump could pursue.

Here are the latest updates as the policy reverberates around the world.

LIVE

1068 updates

President Donald Trump has said it’s “extremely hard” to reach a deal with his Chinese counterpart Xi Jinping, denting hopes for a call between the two leaders as trade talks stall.

“I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!” Trump posted on Truth Social in the early hours of Wednesday.

China responded to Trump’s claim on Friday that it has “totally violated its agreement” with the US, in turn accusing the US of breaching the agreement and vowing to protect its interests. The US-China detente — reached earlier this month, when each country eased sky-high tariffs on the other — has been looking more fragile amid both trade-related and other tensions.

Trump’s trade war is causing the global economy to slow, with growth now heading for its weakest pace since the COVID-19 pandemic, the OECD has warned.

The OECD cut its forecasts for most G20 economies and warned that easing trade tensions is key to boosting investment and keeping prices stable.

The warning comes as the US is pushing countries to speed up trade talks. The White House has confirmed that the US had sent a letter to partners as a “friendly reminder” that Trump’s self-imposed 90-day pause on sweeping “reciprocal” tariffs is set to expire in early July.

White House advisers have for weeks promised trade deals in the “not-too-distant future,” with the only announced agreement so far coming with the United Kingdom.

But US tensions with China and the EU — two key trade partners — amped up after Trump promised last weekend to double tariffs on steel and aluminum from 25% to 50%.

US trade talks with the EU have come back into focus as an early-July deadline looms for Trump’s 50% tariffs on imports from the bloc.

With US and EU negotiators, Jamieson Greer and Maroš Šefčovič, meeting in Paris today, all eyes are on whether a deal will be made.

Meanwhile, Trump’s most sweeping tariffs face legal uncertainty after a federal appeals court allowed the tariffs to temporarily stay in effect, a day after the US Court of International Trade blocked their implementation, deeming the method used to enact them “unlawful.”

Administration officials also hinted that court rulings would not be the final say. Yahoo Finance’s Ben Werschkul has an overview of the other maneuvers Trump could pursue.

Here are the latest updates as the policy reverberates around the world.

LIVE

1068 updates

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President Donald Trump announced the US will double its tariffs on steel imports and aluminium to take effect on Wednesday — a measure expected to have a significant impact on Europe.

Trump said that doubling taxes on imported steel would “further strengthen the steel industry in the United States”. In a post, published later on his Truth Social platform, the US president added that duties on aluminium will also increase from 25% to 50%.

The reaction from Brussels was swift. “We strongly regret the announced increase of US tariffs on steel imports from 25% to 50%,” the European Commission said in a statement on Saturday.

“This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic”.

Also referring to the ongoing transatlantic trade talks, the spokesperson said that “the tariff increase also undermines ongoing efforts to reach a negotiated solution.”

“The EU is prepared to impose countermeasures, including in response to the latest US tariff increase” if needed, the Commission said.

The announcement comes after confusing days during which the judiciary gave opposing rulings on Trump’s customs policy, first blocking it with a decision by the US Court of International Trade and finally giving it the green light again, pending a new decision by a federal appeals court.

Investment coming from Japan

Trump spoke on Friday at US Steel’s Mon Valley Works-Irvin plant on the outskirts of Pittsburgh, Pennsylvania, where he also discussed details of a deal being finalised for investment by Japan’s Nippon Steel in the iconic American steel mill.

Trump clarified to reporters after his return to Washington, however, that he has yet to approve the deal. “I have to approve the final agreement with Nippon and we haven’t seen the final agreement yet, but they’ve made a very big commitment and it’s a very big investment,” he said.

Although Trump initially promised to block the Japanese steelmaker’s bid to buy US Steel, he changed course and last week announced an agreement for a partial sale to Nippon Steel.

The Japanese company never claimed to have changed its previous offer to buy and fully control US Steel, for $14.9 billion, although it did increase the amount it promised to invest in American plants and guaranteed it would not lay anyone off.

“We are here today to celebrate anextraordinary deal that will ensure that this historic American company will remain an American company,” Trump said during a rally at one of U.S. Steel’s warehouses, “you will remain an American company, you know that, right?”

The United Steelworkers union said it was very concerned “about the impact this merger of U.S. Steel with a foreign competitor will have on national security, our members, and the communities where we live and work.”

President Donald Trump tours U.S. Steel Corporation’s Mon Valley Works-Irvin plant, Friday, May 30, 2025, in West Mifflin, Pa. (AP Photo/Julia Demaree Nikhinson) AP Photo

According to the government’s producer price index, steel prices have risen 16% since Trump became president in mid-January.

As of March 2025, steel cost $984 per metric tonne in the US, far more than the price in Europe ($690) or China ($392), according to the US Department of Commerce.

Among the partners most affected by the possible increase in duties on these materials are the EU, which had just obtained a July postponement of the increase in general duties on exports to the US, and Canada.

“Dismantling efficient, competitive, and reliable cross-border supply chains like we have in steel and aluminium comes at a high cost to both countries,” Candace Laing, president of the Canadian Chamber of Commerce commented.

Last year, the US produced about three times as much steel as it imported, with Canada, Brazil, Mexico and South Korea as the main sources of imports. Analysts have credited the duties dating back to Trump’s first term with helping to strengthen the domestic steel industry.

The fate of US Steel, once the world’s largest steel company, could weigh in the midterm elections for the Republican Party in the always decisive state of Pennsylvania and others that depend on manufacturing.

President Donald Trump has said it’s “extremely hard” to reach a deal with his Chinese counterpart Xi Jinping, denting hopes for a call between the two leaders as trade talks stall.

“I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!” Trump posted on Truth Social in the early hours of Wednesday.

China responded to Trump’s claim on Friday that it has “totally violated its agreement” with the US, in turn accusing the US of breaching the agreement and vowing to protect its interests. The US-China detente — reached earlier this month, when each country eased sky-high tariffs on the other — has been looking more fragile amid both trade-related and other tensions.

Trump’s trade war is causing the global economy to slow, with growth now heading for its weakest pace since the COVID-19 pandemic, the OECD has warned.

The OECD cut its forecasts for most G20 economies and warned that easing trade tensions is key to boosting investment and keeping prices stable.

The warning comes as the US is pushing countries to speed up trade talks. The White House has confirmed that the US had sent a letter to partners as a “friendly reminder” that Trump’s self-imposed 90-day pause on sweeping “reciprocal” tariffs is set to expire in early July.

White House advisers have for weeks promised trade deals in the “not-too-distant future,” with the only announced agreement so far coming with the United Kingdom.

But US tensions with China and the EU — two key trade partners — amped up after Trump promised last weekend to double tariffs on steel and aluminum from 25% to 50%.

US trade talks with the EU have come back into focus as an early-July deadline looms for Trump’s 50% tariffs on imports from the bloc.

With US and EU negotiators, Jamieson Greer and Maroš Šefčovič, meeting in Paris today, all eyes are on whether a deal will be made.

Meanwhile, Trump’s most sweeping tariffs face legal uncertainty after a federal appeals court allowed the tariffs to temporarily stay in effect, a day after the US Court of International Trade blocked their implementation, deeming the method used to enact them “unlawful.”

Administration officials also hinted that court rulings would not be the final say. Yahoo Finance’s Ben Werschkul has an overview of the other maneuvers Trump could pursue.

Here are the latest updates as the policy reverberates around the world.

LIVE

1068 updates

President Donald Trump has said it’s “extremely hard” to reach a deal with his Chinese counterpart Xi Jinping, denting hopes for a call between the two leaders as trade talks stall.

“I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!” Trump posted on Truth Social in the early hours of Wednesday.

China responded to Trump’s claim on Friday that it has “totally violated its agreement” with the US, in turn accusing the US of breaching the agreement and vowing to protect its interests. The US-China detente — reached earlier this month, when each country eased sky-high tariffs on the other — has been looking more fragile amid both trade-related and other tensions.

Trump’s trade war is causing the global economy to slow, with growth now heading for its weakest pace since the COVID-19 pandemic, the OECD has warned.

The OECD cut its forecasts for most G20 economies and warned that easing trade tensions is key to boosting investment and keeping prices stable.

The warning comes as the US is pushing countries to speed up trade talks. The White House has confirmed that the US had sent a letter to partners as a “friendly reminder” that Trump’s self-imposed 90-day pause on sweeping “reciprocal” tariffs is set to expire in early July.

White House advisers have for weeks promised trade deals in the “not-too-distant future,” with the only announced agreement so far coming with the United Kingdom.

But US tensions with China and the EU — two key trade partners — amped up after Trump promised last weekend to double tariffs on steel and aluminum from 25% to 50%.

US trade talks with the EU have come back into focus as an early-July deadline looms for Trump’s 50% tariffs on imports from the bloc.

With US and EU negotiators, Jamieson Greer and Maroš Šefčovič, meeting in Paris today, all eyes are on whether a deal will be made.

Meanwhile, Trump’s most sweeping tariffs face legal uncertainty after a federal appeals court allowed the tariffs to temporarily stay in effect, a day after the US Court of International Trade blocked their implementation, deeming the method used to enact them “unlawful.”

Administration officials also hinted that court rulings would not be the final say. Yahoo Finance’s Ben Werschkul has an overview of the other maneuvers Trump could pursue.

Here are the latest updates as the policy reverberates around the world.

LIVE

1068 updates