Trump tariffs: News / Updates

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Trump tariffs: US offers Pakistan to buy more cotton​

BR Web Desk
May 6, 2025

The United States has encouraged Pakistan to enhance its cotton imports, citing Pakistan’s local textile industry’s growing demand for high-quality cotton.

The remarks were made by Natalie A. Baker, the Charge d’Affaires (CDA) of the USA, during a meeting with Federal Minister for Commerce Jam Kamal Khan in Islamabad. The meeting was also attended by the US Chamber of Commerce and the US-Pakistan Business Council (USPBC).

The USPBC delegation was led by Charles Freeman, Senior Vice President of US Chamber of Commerce, read a statement released by the Ministry of Commerce.

During the meeting, Baker appreciated positive developments in agricultural trade, including the resumption of soybean exports from the US to Pakistan.

“Enhanced cooperation in the cotton sector is also a key area for mutual growth, given Pakistan’s textile industry’s demand for high-quality cotton and the US’s position to meet this demand,” she said.

Meanwhile, Kamal said that the government is preparing a comprehensive plan to address trade deficit with the US and market access issues of its companies.

“Efforts are underway to address trade deficit and market access issues through a comprehensive strategy involving relevant stakeholders,” said Jam, adding that the recent 90-day pause by US President Donald Trump in reciprocal tariffs is seen as “a significant opportunity for constructive engagement and building a sustainable, mutually beneficial roadmap”.

The commerce minister said that Pakistan values the United States as its largest export destination and deeply appreciates the strategic trade relationship.
Jam assured that Pakistan is committed to creating a conducive trade environment for US businesses and investors, upholding transparent, rules-based, and fair-trade practices, read the statement.


The federal minister highlighted that Pakistan’s economy is showing positive trends, with major macroeconomic indicators stabilising.

The government has undertaken focused reforms to improve the ease of doing business, making it more predictable and transparent, he said. These reforms include reductions in policy rate and inflation, lower electricity prices for businesses, and a commitment to policy consistency and regulatory transparency.

Trump tariffs: US offers Pakistan to buy more cotton

The United States has encouraged Pakistan to enhance its cotton imports, citing Pakistan’s local textile industry’s...

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Trump considering 100% tariffs on movies not made in the US​

Peter Hoskins
Business reporter

Maia Davies
BBC News

Watch Trump on non-US movie tariffs: 'Hollywood is being destroyed'

Donald Trump says he will talk to Hollywood executives, after his earlier announcement to hit films made in foreign countries with 100% tariffs sent shockwaves through the industry.

The US president said on Sunday he was authorising the commerce department to start the process to impose the levy because America's film industry was dying "a very fast death".

But he appeared to soften his stance later on Monday, telling reporters at the White House he was going to "meet with the industry" to "make sure they're happy" with his proposal.

For years, filmmakers have been leaving Hollywood for destinations including the UK and Canada to lower costs.

One non-US union said the tariff plan would be a "knock-out blow" to the international industry.
Trump said on his Truth Social platform: "It is, in addition to everything else, messaging and propaganda!"

"WE WANT MOVIES MADE IN AMERICA, AGAIN!"

US Commerce Secretary Howard Lutnick responded to the announcement, saying "We're on it".
But the details are unclear. Trump's statement did not say whether the tariff would apply to American production companies producing films abroad.

White House spokesman Kush Desai told the BBC: "Although no final decisions on foreign film tariffs have been made, the Administration is exploring all options to deliver on President Trump's directive to safeguard our country's national and economic security while Making Hollywood Great Again."

Several recent major films produced by US studios were shot outside of America, including Deadpool & Wolverine, Wicked and Gladiator II.

It was also unclear if the tariffs would apply to films on streaming services, such as Netflix, as well as those shown at cinemas, or how they would be calculated.

The founder of European cinema chain Vue, Timothy Richards, questioned how Trump would define a US film.

Speaking to BBC Radio 4's Today programme, he said: "Is it where the money comes from? The script, the director, the talent, where it was shot?"

Mr Richards said the cost of filming in southern California had grown significantly over the last few decades, prompting filmmakers to move production to locations including the UK, which have increasingly offered tax incentives and lower costs.

"But it's not just the actual financing itself," he added.

"One of reasons UK has done so well is we have some of the most highly experienced and skilled film and production crew in the world.

"The devil will be in the details."

Meanwhile, UK media union Bectu warned the tariffs could "deal a knock-out blow" to the industry and its tens of thousands of freelancers, as it recovered from the pandemic and a "recent slowdown".

Union chief Philippa Childs told the BBC: "The government must move swiftly to defend this vital sector, and support the freelancers who power it, as a matter of essential national economic interest."

The UK government said it was "absolutely committed" to ensuring its film sector continued to thrive and create jobs, and would set out plans to do so in its upcoming Creative Industries Sector Plan.

It added that talks on an economic deal with the US were ongoing but a "running commentary" on progress was "not in the national interest".

The British Film Institute said it was working closely with the government and industry partners in the UK and the US "while we understand the detail of the proposal".

"We want to keep collaboration at the heart of our sectors, so we remain a constructive partner to our friends in the US and internationally," it said.

Reuters

It is unclear whether the proposals would affect films like Wicked, which was filmed in the UK but produced by an American studio

The US remains a major film production hub globally despite challenges, according to movie industry research firm ProdPro.

Its most recent annual report shows the country saw $14.54bn (£10.94bn) of production spending last year. Although that was down by 26% since 2022.

And NPR Radio film critic Eric Deggans warned that the tariffs, should they be introduced, could further harm the industry.

Other countries may respond by placing tariffs on American films, he told the BBC, making it "harder for these films to make profits overseas".

"It may create a situation where the tariffs in America are causing more harm than good," he added.

The Motion Picture Association, which represents the five major US film studios, declined to comment when contacted by the BBC.

Countries that have attracted an increase in spending since 2022 include Australia, New Zealand, Canada and the UK, according to ProdPro.


Following Trump's remarks, Australia's home affairs minister Tony Burke said: "Nobody should be under any doubt that we will be standing up unequivocally for the rights of the Australian screen industry."

Industry body Screen Producers Australia said that while there were "many unknowns" about the plan, there was "no doubt it will send shock waves worldwide".

New Zealand's Prime Minister Christopher Luxon also said his government was awaiting further details of the proposed tariffs.

"But we'll be obviously a great advocate, great champion of that sector and that industry," he told a news conference.

 

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US jobs grow by more than expected despite tariff turmoil​

Natalie Sherman
BBC News

Getty Images

Hiring in the US remained solid last month, despite turmoil stemming from changes to trade policy.

Employers added 177,000 jobs in April, while the unemployment rate was unchanged at 4.2%, the Labor Department said.

The gain was bigger than many analysts had expected in a month marked by chaos in financial markets and rising concerns about the economy tracked in surveys of businesses and households.

The resilience of the US jobs market over the last few years has surprised analysts, helping to sustain spending even as households faced rising prices and a sharp jump in interest rates.

The latest figures have raised some hopes that the country may be able to weather the uncertainty from tariff policy without suffering a painful economic downturn.

But analysts expressed caution, noting that the impact of the sweeping import taxes announced by Donald Trump would take more time to be fully felt.

Olu Sonola, head of US economic research at Fitch Ratings, said it was a good jobs report, despite revisions showing employers added fewer jobs in January and February than initially estimated.

"The key message coming from the totality of the data this week is that the US economy was fundamentally strong through the first week of April, however, the outlook remains very uncertain," he said.

The Labor Department's surveys were conducted less than two weeks after Trump announced his "Liberation Day" tariffs, which have raised the average rate of import taxes in the US to the highest level in more than a century.

Many firms have said they are moving cautiously for now, citing rapid changes in policy and hope that Trump's promises of trade deals will bear fruit.

Hiring last month was led by healthcare, warehousing and transportation firms.

Employment declined in the federal government - where Trump has vowed to cut spending - but that was offset by gains in local government.

Payrolls also dropped at manufacturing and retail firms.

Average hourly pay rose 3.8% over the last 12 months, according to the report.

Seema Shah, chief global strategist at Principal Asset Management, said the figures suggested the US central bank does not face urgency to cut interest rates to support the economy.

"Why would the Fed start cutting rates right now when the unemployment rate is near record lows, the consumer is still fairly robust, and inflation is running above target?" she said.

"The economy will weaken in the coming months but, with this underlying momentum, the US has a decent chance of averting recession if it can step back from the tariff brink in time."

 

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Wall Street declines after Trump’s latest tariff threats​

Reuters
May 6, 2025

Photo: Reuters

Wall Street’s main indexes fell on Tuesday after U.S. President Donald Trump’s latest plans for pharma tariffs renewed worries of the impact of a trade war, while some downbeat corporate results also weighed on investor sentiment.

Trump said late on Monday that he would announce pharma tariffs over the next two weeks, his latest action on levies that have roiled global financial markets over the past months.

Eli Lilly and Merck slipped about 2.4% each, while Pfizer was down 1.7% after the news, which offset optimism around Trump’s order aimed at reducing the approval time for pharmaceutical manufacturing plants.

Tariff-driven uncertainty has led consumers, businesses and even the U.S. Federal Reserve to adopt a wait-and-watch mode as they struggle to navigate the tariffs and gauge their impact.

Ford Motor was the latest to suspend its annual outlook on Monday, joining a host of companies that withdrew their forecasts in April. The carmaker’s shares reversed premarket losses and were last up about 1% in choppy trading.

“The biggest thing that stands out (this earnings season) is that CEOs are concerned about the uncertainty that’s coming out (of) Washington, D.C. with respect to global trade,” said Adam Sarhan, chief executive of 50 Park Investments.

At 09:55 a.m. ET the Dow Jones Industrial Average fell 435.80 points, or 1.06%, to 40,783.03, the S&P 500 lost 61.98 points, or 1.10%, to 5,588.40, and the Nasdaq Composite lost 240.21 points, or 1.35%, to 17,604.03.

Most S&P 500 sectors were trading in the red, with healthcare and info tech the biggest losers, down 1.4% and 1.7%, respectively.

Data analytics firm Palantir’s shares fell 13.5% to the bottom of the S&P 500 as investors were unimpressed by the company’s modest revenue beat and in-line profit.

The Fed starts its two-day meeting on Tuesday, with the central bank widely expected to stay put on interest rates. Comments from policymakers will be scrutinized for any clues hinting at where they stand on monetary policy easing this year.

Traders see about 79 basis points of policy easing by the end of 2025, with the first cut coming in July, according to data compiled by LSEG.

The Trump administration suggested last week that potential deals with trading partners were underway, but markets have seen no concrete results on that front. Wall Street closed lower on Monday, with the benchmark S&P 500 snapping a nine-session winning streak.

Against the uncertain trade backdrop, businesses boosted imports of goods in March, pushing the country’s trade deficit to a record high of $140.5 billion.

DoorDash was down 7.5% after the meal delivery firm said it would buy Deliveroo in a deal valuing the British rival at about 2.9 billion pounds ($3.86 billion). The U.S. firm’s quarterly revenue missed estimates, disappointing investors.

Declining issues outnumbered advancers for a 3.03-to-1 ratio on the NYSE and a 3.31-to-1 ratio on the Nasdaq.

The S&P 500 posted three new 52-week highs and six new lows, while the Nasdaq Composite recorded nine new highs and 56 new lows.

 

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No signs of US recession, Treasury Secretary says​

AFP
May 6, 2025

“I believe in data, and there is nothing in the data that shows that we are in a recession,” Scott Bessent told lawmakers during an appearance in Congress.

Bessent’s remarks contrast with those of Trump, who was asked in a recent interview if the United States could enter a recession.

“Anything can happen,” he told NBC in the interview, which was broadcast on Sunday. “But I think we’re going to have the greatest economy in the history of our country. I think we’re going have the greatest economic boom in history.”

The technical definition of a recession is two consecutive quarters of economic contraction, although the National Bureau of Economic Research uses a slightly broader metric when making official judgements about the US economy.

“As a matter of fact, the jobs report had a surprise to the upside,” Bessent said, referring to the better-than-expected April jobs report published last week.

Since taking office, US President Donald Trump has rolled out steep tariffs against top trading partners, leading to a surge in volatility in the financial markets and causing analysts to predict higher inflation and slower growth this year.

Growth in the first quarter of 2025 unexpectedly contracted, according to initial government estimates, as consumers and businesses rushed to import more goods ahead of the rollout of Trump’s sweeping “liberation day” tariffs in early April.

Bessent told lawmakers the administration was making good progress with top trading partners ahead of a self-imposed July deadline to reach a deal or face the prospect of higher tariffs – with the exception of China, with which the United States has not yet begun talks.

“Perhaps as early as this week we will be announcing trade deals with some of our largest trading partners,” he said, echoing recent remarks from the US president.

“And what I will tell you is that in negotiating with some of them, they may not like the tariff wall that President Trump has put up, but they have them,” he added. “So if tariffs are so bad, why do they like them?”

Once the negotiations conclude, Bessent said he expects the United States would “see a substantial reduction in the tariffs that we are being charged, as well as non-tariff barriers, currency manipulation, and the subsidies of both labor and capital investment.”