Tariff Tension: US and China agreed to slash tariff for 90 days

Global tension eases a bit this week as the US president, Donald Trump and  China president, Xi Jinping agreed to lower their reciprocal tariff by 115% for a 90 days period.

This announcement was made after the two countries held their first talk in Switzerland since the US President Donald Trump had levied steep tariffs on Chinese imports.

The 145% tariffs made by the US on Chinese imports caused turmoil in the financial markets and sparked fears of a global recession while Beijing also responded with a 125% levy on some US goods.

The imposition of the tariffs had raised the prospect of trade between the two countries slumping, with US ports reporting a sharp drop in the number of ships scheduled to arrive from China.

However, the US tariffs on Chinese imports will now be cut to 30% for 90 days, while Chinese tariffs on US imports will be cut to 10% for the same period of time. Which commences on 14 May.

China’s commerce ministry said the agreement reached with the US was an important step to “resolve differences” and “lay the foundation to bridge differences and deepen cooperation”.

The news of the agreement has also boosted all stock markets, which includes Hong Kong’s benchmark Hang Seng Index, China’s Shanghai Composite Index, European stocks, US stock.

Donald Trump to slash pharmaceutical prices by 80%

The US President, Donald Trump this week said he would sign an executive order to lower prices of prescription drugs and pharmaceutical products.

Earlier in the week, he had promised to make an “earth-shattering” announcement.

The US president said he would sign the executive order, which he said would be one of the most consequential in U.S. history.

Currently in the United States, there is no central government price regulation for drugs applying to all medicines. The pharmaceutical industry is the one that plays the role in determining how much a drug costs, and government influence is limited which leads to high prices for certain drugs.

“Prescription Drug and Pharmaceutical prices will be reduced, almost immediately, by 30 per cent to 80 per cent,” Trump said in a social media post.

Although, It was not initially clear how Trump’s order would work, with a push back expected by pharmaceutical companies.

He already made an attempt to lower drug prices during his first term in office with plans to provide drugs including insulin and EpiPens at discounts to people with low incomes at that time and use lower international prices to pay for some drugs provided under the Medicare state insurance programme for older adults but the proposal was never implemented due to legal and political opposition.

UK slashes graduate visa from two years to 18 months

The UK government has cut their Graduate Route visa from two years down to 18 months. The announcement, part of a broader Immigration White Paper released Monday, is paired with tougher compliance rules for universities, a legal reset on asylum and deportation decisions, and stricter enforcement powers to curb visa fraud.

According to the Home Office website, the key changes to the immigration policy were:

The Graduate Route — previously offering two years of post-study work rights — now offers only 18 months, with a tighter pathway to work visas and fewer rights to bring dependents.

“The Graduate Route has not met its original objectives. It has become a loophole for unsponsored work and a magnet for abuse,” the document said.

“We will take action against sponsors who undermine the integrity of the system,” it added.

Applicants whose home country conditions have not materially changed — or who fail to claim upon arrival — may now be automatically refused under new admissibility rules.

The government also promises legislation to expand deportation powers, allowing the removal of all foreign offenders, not just those jailed for more than 12 months.

“Deportation will apply to all foreign nationals convicted of offences, with increased focus on crimes involving violence against women and girls,” the paper stated.

In a warning to universities, employers, and other sponsors, the Home Office said it will impose financial penalties, licence revocations, and recruitment bans for those found to have facilitated visa abuse.

The Home Office says these changes are part of a long-term plan to restore credibility, reduce numbers, and deliver an immigration system the public can trust.

“We’re making it clear that the UK welcomes global talent — but not at the cost of public confidence or border control,” said Home Secretary Yvette Cooper.

Nissan to cut 20,000 jobs and shut seven factories

The Japanese carmaker Nissan, has said it will cut another 11,000 jobs globally and shut down seven factories as it shakes up the business in the face of weak sales bringing the total number of layoffs announced by the company in the past year to about 20,000, or 15% of its workforce.

The falling sales in China and heavy discounting in the US– its two biggest markets– have taken a heavy toll on earnings.

Nissan also reported an annual loss of 670 billion yen ($4.5bn; £3.4bn), with US President Donald Trump’s tariffs putting further pressure on the struggling firm.

The chief executive, Ivan Espinosa said that the previous financial year had been challenging, with rising costs and an uncertain environment, adding that the results were a wake-up call.

The company did not specify where the job cuts will be made, or whether its plant in Sunderland will be affected.

In Other News

• Microsoft to lay off 6,000 employees amounting to nearly 3 per cent of its global workforce amid restructuring efforts. The company did not provide specific details on the positions being cut. However, the layoffs are expected to affect employees at all levels and across various locations, with an emphasis on reducing management ranks.
• Pope Leo XIV on Wednesday said he is ready to help leaders of warring countries talk and make peace.