President Trump said on Tuesday that he spoke to India’s Prime Minister Narendra Modi, in a move aimed at easing tensions between the two major economies as they clash over tariffs and New Delhi’s purchase of Russian oil.
“He is doing a tremendous job,” Trump said. “Narendra: Thank you for your support on ending the War between Russia and Ukraine!”
Elsewhere, Trump’s visit to the UK has started and with it comes a flurry of deals and announcements. The UK has shelved plans to talk with the US on removing British steel tariffs, meaning current duties will stay in place, according to a report in Bloomberg.
British drugmaker GSK (GSK) said on Wednesday they will invest $30 billion in US research and development. GSK is the largest pharmaceutical firm to scale up its US footprint as Trump threatens to impose import tariffs on the industry and seeks more domestic manufacturing.
Meanwhile, Treasury Secretary Scott Bessent, who is leading the US delegation during ongoing talks with Chinese trade officials in Spain, said in an interview on Tuesday that he is confident a trade deal with China is near.
With reciprocal tariffs set to take effect in November, Bessent told reporters he expects further talks to happen before then.
Bessent also reiterated that he expects a finalized TikTok deal to be announced after President Trump and Xi Jinping talk on Friday.
TikTok is set to go offline Sept. 17 unless parent company ByteDance divests itself of majority ownership of the social media app or Trump extends the deadline again.
On Monday, China accused the US of “unilateral bullying” after Washington called on G7 and NATO allies to impose tariffs on Beijing over its purchase of Russian oil.
In the background, the Supreme Court is reviewing a high-stakes legal challenge to President Trump’s tariffs, setting up a resolution as early as this fall.
The high court put the case on track for oral arguments in early November. That puts the case on an unusually quick track to resolution.
The tariffs at stake are the sweeping “reciprocal,” country-specific duties Trump has outlined in various steps this year (which you can see in the graphic below). Those duties range from 10% to 50%. Trump has used a 1977 law known as “IEEPA” — the International Emergency Economic Powers Act — to justify imposing the tariffs.
The appeals court allowed the tariffs to stay in place while the case moves through the legal process.
Read more: What Trump’s tariffs mean for the economy and your wallet
Here are the latest updates as the policy reverberates around the world.
LIVE1868 updates
Bristol Myers to sell 60% stake in China joint venture
US drugmaker Bristol Myers Squibb (BMY) announced on Tuesday that it has signed an agreement to sell 60% ownership in a pharmaceutical joint venture in China.
As tariffs take hold and President Trump seeks more investment from companies into the US, many firms are exiting foreign investments in a bid to lower the impact higher levies may have.
Reuters reports:
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FedEx profit to be dragged down by US tariffs on previously exempt parcels
FedEx (FDX) will report a quarterly profit hit from President Trump’s decision to end tariff-exempt treatment for popular direct-to-consumer shipments, such as small parcels under $800.
Reuters reports:
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GSK commits $30B to US as Trump visits UK
Pharmaceutical company GSK (GSK) said on Wednesday that it will invest $30 billion in US research and development, as well as supply chain infrastructure over the next five years, after President Trump arrived in Britain and in a bid ease tariffs.
Reuters reports:
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Trump, Modi talk in bid to calm tariffs, Russian oil dispute
President Trump and India’s Prime Minister Narendra Modi have finally spoken in a move that some hope will help ease tensions between the two economies amid a fight over tariffs and New Delhi’s Russian oil purchases.
Bloomberg News reports:
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Japan’s exports down in August as automakers grapple with US tariffs
Reuters reports:
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US to consider new national security tariffs on auto parts
Reuters reports:
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Bessent confident that US-China trade deal is close
US treasury Secretary Scott Bessent said on Tuesday that he is confident a trade deal with China is near.
With reciprocal tariffs set to take effect in November, Bessent said during an interview with CNBC that he expects further talks to happen before then.
“We’ll be seeing each other again,” he said during a wide-ranging exchange on “Squawk Box. “Each one of those talks has become more and more productive. I think the Chinese now sense that a trade deal is possible.”
Wall Street, Corporate America brace for more tariff turmoil
Reuters reports:
Wall Street is bracing for another bumpy ride ahead of a forthcoming Supreme Court decision on the constitutionality of tariffs that could throw Corporate America into turmoil and raise questions over the country’s fiscal health.
The plunge in asset prices in early April in the wake of U.S. President Trump’s Liberation Day tariff announcements offers Wall Street a taste of what some believe may be in store if courts opt to overturn a tariff regime to which market participants have become accustomed.
Since then, the administration has announced an array of trade deals and companies have found ways to absorb some of the costs. Markets in turn have recovered and moved on to set fresh highs.
Read more here.
EU delays Russia sanctions proposal to align with G-7 priorities
The European Union said on Tuesday it will delay presenting its new Russia sanctions after President Trump pushed for tougher European measures before the US proceeds with its own.
Bloomberg News reports:
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South Korea resists US pressure to finalise ‘Japan-style’ trade deal
The Financial Times reports:
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Swatch to hike prices in US after tariffs, CEO says
Reuters reports:
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China finds Nvidia violated antitrust law in chip deal probe as trade talks continue
China ruled on Monday that Nvidia (NVDA) violated anti-monopoly laws with a high-profile deal in 2020, increasing the pressure on Washington during sensitive trade negotiations continue in Madrid.
Nvidia’s stock fell almost 3% before the bell.
Bloomberg News reports:
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Bessent: US close to resolving TikTok issue with China
US Treasury Secretary Scott Bessent confirmed on Monday that they are “very close” to resolving the TikTok issue with China, as trade discussions resumed in Madrid.
Bloomberg News reports:
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China opposes US pushing for tariffs over Russian oil purchase
Reuters reports:
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US-China talks head into second day focused on trade, TikTok
US and Chinese officials met on Sunday to discuss trade, the economy and TikTok in high-level talks in Madrid, a senior Treasury official said, as diplomacy between the two countries steps up.
Bloomberg News reports:
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Trump tariffs facing legal threat that could erode US financial footing
Bloomberg reports:
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Trump says losing patience with Putin, eying bank, oil sanctions
President Trump’s tolerance with Russian President Putin is wearing thin. In a Fox News interview on Friday, Trump made the comment that his patience with Putin was “running out fast” and threatened Moscow with new economic sanctions over the war in Ukraine.
Bloomberg News reports:
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Swatch sells watch lampooning Trump’s 39% tariffs on Switzerland
Swiss watchmaker Swatch (UHR.SW, UHRZ.XC) has started selling a special edition watch with the numbers 3 and 9 reversed on its dial, a tongue-in-cheek reference to President Trump’s 39% tariffs imposed on US imports from Switzerland last month.
Reuters reports:
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US, Japan reaffirm FX commitments, leave room for interventions
Reuters reports:
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China gives Mexico stiff warning over tariffs seen appeasing US
China has sent a warning to Mexico telling them to “think twice” before levying tariffs, a sign that could signal Beijing’s willingness to retaliate over a move it sees as giving in to demands from President Trump.
