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Gulf Today
2 hours ago
- Gulf Today
US and China to resume tariff talks in effort to extend truce
Senior US and Chinese negotiators meet in Stockholm on Monday to tackle longstanding economic disputes at the centre of the countries' trade war, aiming to extend a truce keeping sharply higher tariffs at bay. China is facing an August 12 deadline to reach a durable tariff agreement with President Donald Trump's administration, after Beijing and Washington reached a preliminary deal in June to end weeks of escalating tit-for-tat tariffs. Without an agreement, global supply chains could face renewed turmoil from duties exceeding 100%. The Stockholm talks, led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, take place a day after European Commission President Ursula von der Leyen meets Trump at his golf course in Scotland to try to clinch a deal that would likely see a 15% baseline tariff on most EU goods. Trade analysts on both sides of the Pacific say the discussions in the Swedish capital are unlikely to produce any breakthroughs but could prevent further escalation and help create conditions for Trump and Chinese President Xi Jinping to meet later this year. Previous US-China trade talks in Geneva and London in May and June focused on bringing US and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China and Nvidia H20 AI chips and other goods halted by the United States. So far, the talks have not delved into broader economic issues. They include US complaints that China's state-led, export-driven model is flooding world markets with cheap goods, and Beijing's complaints that US national security export controls on tech goods seek to stunt Chinese growth. 'Stockholm will be the first meaningful round of U.S.-China trade talks,' said Bo Zhengyuan, Shanghai-based partner at China consultancy firm Plenum. Trump has been successful in pressuring some other trading partners, including Japan, Vietnam and the Philippines, into deals accepting higher US tariffs of 15% to 20%. He said there was a 50-50 chance that the US and the 27-member European Union could also reach a framework trade pact, adding that Brussels wanted to 'make a deal very badly'. Two of Trump's top trade officials, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer, will attend the Scotland talks and then travel to Stockholm. Analysts say the U.S.-China negotiations are far more complex and will require more time. China's grip on the global market for rare earth minerals and magnets, used in everything from military hardware to car windshield wiper motors, has proved to be an effective leverage point on US industries. In the background of the talks is speculation about a possible meeting between Trump and Xi in late October. Trump has said he will decide soon whether to visit China in a landmark trip to address trade and security tensions. A new flare-up of tariffs and export controls would likely derail any plans for a meeting with Xi. 'The Stockholm meeting is an opportunity to start laying the groundwork for a Trump visit to China,' said Wendy Cutler, vice president at the Asia Society Policy Institute. Bessent has already said he wants to work out an extension of the August 12 deadline to prevent tariffs snapping back to 145% on the US side and 125% on the Chinese side. Still, China will likely request a reduction of multi-layered US tariffs totaling 55% on most goods and further easing of US high-tech export controls, analysts said. Beijing has argued that such purchases would help reduce the US trade deficit with China, which reached $295.5 billion in 2024. China is currently facing a 20% tariff related to the US fentanyl crisis, a 10% reciprocal tariff, and 25% duties on most industrial goods imposed during Trump's first term. Bessent has also said he would discuss with He the need for China to rebalance its economy away from exports toward domestic consumer demand. The shift would require China to put an end to a protracted property crisis and boost social safety nets to encourage household spending. Michael Froman, a former US trade representative during Barack Obama's administration, said such a shift has been a goal of US policymakers for two decades. 'Can we effectively use tariffs to get China to fundamentally change their economic strategy? That remains to be seen,' said Froman, now president of the Council on Foreign Relations think-tank. Reuters
The National
7 hours ago
- The National
Why the world is treating the new Syria differently from the new Lebanon, and what Beirut can learn from that
The US, Turkey, Saudi Arabia and other Gulf countries are pressing ahead to encourage Syria to become a model for much of the Middle East. That involves co-existence with Israel, the containment of extremist movements and engagement with minorities, all within the framework of the state. The issue of the state's monopoly on the possession of arms remains a major hurdle. Some of Syria's minority groups insist on retaining their weapons until it becomes clear how the new government will handle their rights and to what extent it will rein in extremist militants. There is also the issue of federalism and decentralisation, which the state opposes. But despite the massacres and atrocities committed in Sweida and on the coast, those investing in President Ahmed Al Shara's project and the new Syrian model are forging ahead. When it comes to the future of Lebanon, however, western countries – namely the 'European three' (E3, which comprises the UK, France and Germany) and the US – are wavering on several fronts. In dealing with Lebanon itself, the E3 has chosen to take a backseat to US diplomacy, led by Ambassador to Turkey and special envoy for Lebanon and Syria Thomas Barrack. But Iran is a hugely important part of what happens in Lebanon, and the E3 limited recent discussions with representatives from Tehran solely to nuclear issues. Iran's nuclear programme must be addressed, but that should not prevent Europe from raising other concerns, like Tehran's proxy network. Succumbing to Iran's traditional insistence that neither the US nor Europe discuss its regional proxies, including Hezbollah in Lebanon, is a strategic error. It fails to prevent Iran's ongoing erosion of Lebanese sovereignty its use of Lebanon as a bargaining chip in negotiations with the West. Europe is not challenging Tehran's directive to Hezbollah to keep its arms instead of handing them over to the Lebanese state. This is dangerous, especially given how confused and contradictory US positions have become towards both Iran and Lebanon. Europe is not challenging Tehran's directive to Hezbollah to keep its arms Mr Barrack's three visits to Lebanon have drawn criticism because at times he wielded the stick and at others, he expressed understanding of the 'complexity' of disarming Hezbollah. One moment, he described Hezbollah as a political party and the next a terrorist organisation. He appears to have emerged from meetings with Lebanese officials more influenced by their appeasement tactics than persuasive in moving them towards sovereign decision-making. The contradictions in the American position in Lebanon may be intentional, as part of a strategy to alarm Lebanese officials and the public, or unintentional, the result of Mr Barrack's frequent gaffes, only to be followed by retractions. Mr Barrack says he understands the 'difficulties', and that 'everyone is doing their part and trying to settle things in Lebanon, but the situation is complex, both for Lebanese leaders and for all of us'. Such statements devalue American prestige and seriousness. They are not so much the words of a serious emissary carrying US President Donald Trump's demand that Lebanon's leaders enforce a monopoly on arms as they are those of a local-style politician who 'understands' the difficulties but cannot guarantee how Israel might react to Hezbollah's outright refusal to disarm. Nor has Steve Witkoff, Mr Trump's envoy to the Iran negotiations, insisted that Iran cease using its grip over Lebanon through Hezbollah as a negotiation card with Washington. All of this will cost Lebanon dearly when Israel inevitably destroys its infrastructure in response to Hezbollah's rebuilding of its military capabilities, including Iranian missiles on Lebanese soil. The Trump administration does not want Israel to open multiple fronts. But it also cannot restrain Israel in Lebanon if Israel deems Hezbollah's refusal to disarm a security threat. Yet in Syria, Mr Trump wants Israel to act with restraint. Iran has lost its staging ground there, a devastating blow to its regional axis. And while Washington recognises the persistence of extremism and the survival of ISIS, it believes that containment of these factions is possible through co-optation, offering them a slice of the cake instead of a bloody conflict. In return, Israel gains a buffer zone and security guarantees along its border with Syria. The message to Israel is that even if ISIS remains dominant in some areas, security arrangements can contain its threat as long as it remains within isolated pockets that pose no danger to the Syrian state structure. In other words, Syria will not be a threat to Israel. Gulf states have quickly moved to encourage Syria's re-integration into the Arab fold. Despite all the challenges, the Gulf is a key partner in backing Mr Al Shara and rebuilding Syria. This was reflected last week in the Saudi-Syrian Investment Forum, a watershed moment that signalled a long-term strategic partnership between Riyadh and Damascus. Forty-seven agreements and memoranda of understanding were signed, worth about $6.4 billion. They included the construction of a medical city as well as deals in agriculture, industry, transport, gas, water, electricity, infrastructure and real estate development. Syria is being placed on a new track, and should indeed be congratulated for this strategic leap towards realism that embraces investment as the basis of policy. One hopes Lebanon's leaders take a lesson from their new counterparts in Damascus and abandon their arrogance towards eager assistance from fellow Arab states, hiding behind the excuse of being unable to rein in Hezbollah. They ought to demand the US, Europe and the Arab world also pressure Iran and not just offer security guarantees via Israel, because the two issues are inseparable. One hopes they also cease dodging political accountability under the guise of protecting Lebanon's safety. Perhaps Arab states will consider taking a calculated risk in supporting Lebanon, as they did in Syria. Both countries suffer from instability. Just as Hezbollah and Israel are playing havoc with Lebanon, extremist fundamentalism continues to trouble Syria. May the international partnership playing a constructive role in Syria inspire those involved to think outside the box in order to rescue Lebanon from regional war and ruin. Lebanon, too, deserves to be rebuilt and invested in to defy those who want it destroyed.
Khaleej Times
7 hours ago
- Khaleej Times
UAE, Jordan planes drop 25 tonnes of aid over Gaza as hundreds die from starvation
Two Jordanian and one Emirati plane dropped 25 tonnes of humanitarian aid over the Gaza Strip on Sunday, the Jordanian army said in a statement. "The Jordanian Armed Forces on Sunday carried out three air drops on the Gaza Strip carrying humanitarian and food aid, one of which was with the United Arab Emirates," the statement said, adding that they were carrying 25 tonnes of aid. On Saturday, July 26, UAE's Minister of Foreign Affairs Sheikh Abdullah bin Zayed Al Nahyan confirmed the Emirates would immediately resume airdrop operations to Gaza as part of its ongoing humanitarian mission. In a statement posted, the minister said the humanitarian situation in Gaza has reached a critical and unprecedented level, underscoring the urgent need for sustained international aid efforts. Israeli army had said a day earlier that Israel would allow foreign countries to parachute aid into Gaza starting on Friday. Meanwhile, the Israeli military announced a pause in military activity in designated areas in Gaza where it is 'not operating' today. It said that the pause will be daily in three areas of Gaza starting on Sunday, starting at 10am and lasting until 8pm.
