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China Warns U.S. Against Tariff Escalation Amid Rare Earths Dispute

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China has vowed not to back down in the face of U.S. tariff threats, warning that it will take “resolute countermeasures” if Washington proceeds with new import taxes, the Chinese Commerce Ministry said on Sunday.

“China’s stance is consistent,” the ministry said in an online statement. “We do not want a tariff war, but we are not afraid of one.”

The warning came two days after U.S. President Donald Trump threatened to impose 100 percent tariffs on Chinese imports starting November 1. The move was reportedly a response to Beijing’s new restrictions on the export of rare earth elements — critical minerals used in technologies ranging from electric vehicles and smartphones to radar systems and jet engines.

In a post presented as a Q&A with an unnamed ministry spokesperson, Beijing urged Washington to resolve trade differences “through dialogue, not coercion.” The ministry cautioned that “frequently resorting to the threat of high tariffs is not the correct way to get along with China,” adding that if the U.S. “obstinately insists on its practice,” China will act to defend its legitimate interests.

The exchange threatens to reignite a tariff confrontation between the world’s two largest economies and casts doubt over a potential meeting between Trump and Chinese President Xi Jinping. Earlier this year, both nations had briefly imposed tariffs exceeding 100 percent before agreeing to a truce.

Trump accused China of “becoming very hostile” and of “holding the world captive” by limiting access to rare earth metals and magnets. China’s new rules require foreign firms to obtain special approval to export products containing even trace amounts of Chinese-sourced rare earths — minerals essential to both commercial and military applications.

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Beijing maintains that the restrictions are aimed at ensuring responsible resource management and protecting national security. The Commerce Ministry said export licenses would continue to be granted for “legitimate civilian uses” but noted that the minerals’ strategic value necessitated tighter oversight.

China dominates the global rare earths market, accounting for nearly 70 percent of global mining and around 90 percent of processing. The country’s control over the supply chain has become a focal point in trade tensions with Washington, as the U.S. seeks to diversify supply sources and reduce dependence on Chinese materials.

The ministry also criticized recent U.S. actions, including the expansion of export controls on Chinese firms and the introduction of new port fees on Chinese vessels set to take effect Tuesday. In retaliation, Beijing announced on Friday that it would impose reciprocal fees on American ships.

With both sides trading new economic blows, the fragile calm in U.S.–China trade relations appears increasingly at risk, raising fears of another round of global market turbulence.

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Belarus Shifts Migrant Pressure to Latvia as Baltic States Strengthen Border Defences

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Belarus has shifted the focus of irregular migration towards Latvia’s border, prompting Riga to seek additional support from neighbouring countries as the Baltic state prepares for parliamentary elections in October.

Lithuania is also considering temporary border controls to deal with a sharp increase in migrants travelling onward from Latvia after entering the European Union, adding to concerns about pressure on the bloc’s eastern frontier.

Latvian authorities say the latest increase is part of a wider campaign by Belarusian President Alexander Lukashenko’s government to use migration as a political tool against the EU. Latvia, Lithuania and Poland have faced irregular crossings from Belarus for several years, but officials now say the pressure has moved increasingly towards Latvia.

The scale of the change was highlighted by border figures. Latvia, which shares a 173-kilometre frontier with Belarus, recorded 111 attempted illegal crossings in one day last week. Lithuania, whose border with Belarus stretches 679 kilometres, recorded two attempts on the same day, while Poland reported no attempted crossings the previous day.

“Today Latvia’s border has become the main target,” Latvian Interior Minister Janis Dombrava said.

Latvian officials argue that Russia’s war against Ukraine and Belarus’ support for Moscow have increased security risks across the region. They say Minsk has facilitated migration towards EU borders to put pressure on neighbouring governments and stretch their security resources.

The latest situation has led Latvia to seek assistance from its Baltic neighbours. Lithuania has sent nine border guards and two service dogs to support patrols along the Latvian-Belarusian border. Estonia previously deployed two teams of 12 border guards to Latvia.

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Officials from the three countries say cooperation is necessary because the Latvian-Belarusian frontier is also an external border of both the EU and NATO.

At the same time, Lithuania is dealing with a growing number of migrants entering the country from Latvia. Lithuanian border authorities say secondary migration has increased more than fourfold compared with the first half of last year.

The increase has prompted discussion about temporary checks on Lithuania’s border with Latvia. Interior Minister Martynas Katelynas has not ruled out the measure if other steps fail to control the flow.

For now, however, Latvia says the priority is strengthening the EU’s external border rather than restricting movement between the Baltic states. Riga and Vilnius have agreed to deepen cooperation between their law enforcement agencies and increase the exchange of border personnel.

Officials in Latvia, Lithuania and Estonia accuse Belarus of organising migration flows to create political pressure. They say migrants are often brought to Belarus legally before being transported towards EU borders, with some allegedly receiving assistance from Belarusian security forces.

Lithuanian officials said the nationalities of migrants have changed over time, with people arriving from countries including Iraq, Syria, Afghanistan, Iran and Somalia.

Baltic authorities insist the latest migration pressure is part of a state-backed operation aimed at undermining border security and creating instability across the region.

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EU Proposes Carbon Charges for More International Flights Under ETS Overhaul

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The European Commission has proposed expanding the European Union’s carbon market to cover more international flights arriving in Europe, bringing thousands of routes under emissions trading from 2029 as part of a wider overhaul of the bloc’s Emissions Trading System (ETS).

Under the proposal announced on Friday, flights arriving in Europe from destinations within 5,000 kilometres would be required to pay for their carbon dioxide emissions. Routes such as Frankfurt to Dubai and Frankfurt to Istanbul would fall under the scheme, while longer journeys including Frankfurt to Tokyo would remain outside its scope. Flights arriving from the United States and China would also be exempt.

The proposal keeps existing exemptions for domestic flights serving the EU’s outermost regions, including connections between mainland Spain and the Canary Islands, until the end of 2035.

European officials said the changes are intended to create fairer competition for EU airlines, arguing that some non-EU carriers, particularly those operating through Gulf hubs, currently benefit from an uneven regulatory environment.

Climate Commissioner Wopke Hoekstra said aviation remains the only major sector where emissions continue to increase. He added that extending the ETS would help address competitive concerns while supporting the EU’s climate objectives. Hoekstra also confirmed that private jets departing from and arriving in Europe would be covered under the revised rules.

The Commission is legally required to assess whether international aviation should face broader carbon pricing beyond flights operating within the European Economic Area. The current ETS has covered intra-European flights since 2012, while most international aviation emissions are managed through the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

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EU officials said that if international efforts fail to deliver sufficient emissions reductions by 2032, Brussels may be required to propose extending the ETS to all departing international flights from Europe, although they acknowledged such a move would be politically challenging.

The revised package also proposes significant changes for industrial companies receiving free carbon allowances. Under the plan, firms would receive 80% of their free allocations after publishing board-approved decarbonisation investment plans, while the remaining 20% would only be released after those investments and emissions reductions have been completed.

Commission officials said the approach is designed to encourage investment in cleaner technologies while maintaining Europe’s industrial competitiveness. They also want at least half of national ETS revenues to be reinvested in sectors covered by the carbon market, including aviation, maritime transport and energy-intensive industries.

The proposal has drawn mixed reactions. German lawmaker Peter Liese called for additional free allowances tied to investments within Europe to protect jobs during the transition. Meanwhile, environmental group Transport & Environment warned against weakening the ETS, arguing that the carbon market has already helped cut emissions substantially since 2005 and remains essential for financing future clean technologies.

The proposal will now move to the European Parliament and EU member states, with negotiations expected to begin after the summer break.

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Iran Claims Strikes on US Bases as Hormuz Tensions Escalate

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Iran’s Revolutionary Guards Corps (IRGC) said early Wednesday it had launched attacks against US military facilities in Bahrain and Kuwait, marking another escalation in the conflict as the United States continued military operations against Iran and renewed restrictions on Iranian shipping in the Strait of Hormuz.

The IRGC said it targeted the US Fifth Fleet’s command-and-control facilities, logistical centres, petroleum installations and military equipment in Bahrain, along with a US base in Kuwait. Iranian state media described the strikes as retaliation for recent American military operations and efforts to control maritime traffic through the Strait of Hormuz.

In a statement carried by local media, the IRGC warned that if Washington continued trying to restrict regional oil and gas exports by controlling key shipping routes, Iran would seek to disrupt other energy corridors serving US and allied interests. The statement declared that regional energy exports would be “for everyone or for no one,” although it did not specify which routes could be targeted.

Missile warning systems were activated in Bahrain and Kuwait as Iranian projectiles approached. Jordanian authorities said their air defence systems intercepted three incoming Iranian missiles, while Kuwait’s military reported repelling Iranian drone attacks. Iran also claimed it had targeted US military facilities at Jordan’s Azraq Air Base for a second time.

US Navy Admiral Brad Cooper, commander of US Central Command, confirmed that Iran had launched dozens of missiles and drones toward neighbouring Gulf countries.

The latest exchange came after the US military carried out a fourth consecutive night of operations against Iranian targets. According to US Central Command, fighter aircraft, drones and naval vessels conducted a seven-hour mission targeting Iranian missile and drone sites, naval assets and coastal defence systems.

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CENTCOM said the strikes were intended to reduce Iran’s ability to threaten commercial shipping and civilian vessels operating in and around the Strait of Hormuz, a waterway that normally handles around one-fifth of the world’s oil and liquefied natural gas trade.

President Donald Trump also renewed warnings that the United States could expand its campaign if diplomatic efforts fail. In a televised interview with Fox News on Tuesday night, Trump said Washington would eventually target Iran’s energy infrastructure unless Tehran agreed to return to negotiations.

“We’re going to knock out all their power plants. We’re gonna knock out their bridges unless they get to the table and negotiate,” Trump said, adding that energy facilities remained potential targets.

The latest hostilities have cast further doubt over a temporary agreement reached in June after the United States lifted an earlier blockade of Iranian shipping to allow negotiations over Tehran’s nuclear programme. Talks have since stalled as military confrontations around the Strait of Hormuz intensified, raising concerns about regional security and the stability of global energy supplies.

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