<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="533" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/E5GSUAFYBFMNLBT3RJYNBKBCIU.jpg" alt="" class="wp-image-610556" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/E5GSUAFYBFMNLBT3RJYNBKBCIU.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/E5GSUAFYBFMNLBT3RJYNBKBCIU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/E5GSUAFYBFMNLBT3RJYNBKBCIU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/E5GSUAFYBFMNLBT3RJYNBKBCIU-768x512.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">FILE PHOTO: High-tension electrical power lines are seen at the Azura-Edo Independent Power Plant (IPP) on the outskirt of Benin City in Edo state, Nigeria June 13, 2018. REUTERS/Akintunde Akinleye/File Photo</figcaption></figure>



LAGOS, April 17 (Reuters)&nbsp;&#8211;&nbsp;Nigeria has achieved a 35% reduction in electricity subsidies following a tariff increase implemented last year for some users, Power Minister Adebayo Adelabu said on Thursday, easing some pressure on public finances in Africa&#8217;s most populous nation.



Nigeria&#8217;s power sector is burdened by a failing grid, gas shortages, high debt and vandalism, leading to a reliance on expensive generators for many.



The country was spending nearly 200 billion naira ($125.01 million) monthly on electricity subsidies because existing tariffs were not commercially viable.



The government last year eliminated subsidies for the 15% of customers classified as heavier users, including households and businesses consuming larger amounts of electricity.



Adelabu told a press briefing in Abuja that this targeted tariff adjustment has yielded significant results, with &#8220;the market generating an additional 700 billion naira in revenue, reflecting a 70% increase&#8221;.



This has helped alleviate the substantial financial strain on public finances, improve generation, and reduce the government&#8217;s tariff shortfall from 3 trillion naira to 1.9 trillion naira.



But the power sector still faces deep-rooted challenges. The country has an installed capacity of 13,000 megawatts, but typically produces only about a third of that, exacerbating the reliance on costly alternatives.



This situation is compounded by state-controlled power tariffs that have historically been too low for distribution companies to cover their costs and pay generating companies, leading to ballooning debts within the sector.



Debt owed to power generating companies has reached 4 trillion naira ($2.50 billion), prompting threats of plant shutdowns.



Adelabu said there were plans underway to help ease the debt burden, with the government intending to pay half of the debt this year through budgetary allocations and promissory notes that companies can discount as needed.



($1 = 1,599.8300 naira)



(Reporting by Isaac Anyaogu; Editing by Frances Kerry)

FILE PHOTO: High-tension electrical power lines are seen at the Azura-Edo IPP on the outskirt of Benin City

Nigeria cuts electricity subsidies by 35% after tariff hike

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3333" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/TK6CHSZXDJPLLBYFHHDN2UBZGY.avif" alt="" class="wp-image-596859"/><figcaption class="wp-element-caption">South Africa&#8217;s Finance Minister Enoch Godongwana delivers his 2025 budget speech in Cape Town, South Africa, March 12, 2025. REUTERS/Esa Alexander/File Photo</figcaption></figure>



JOHANNESBURG, April 17 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s finance minister has said that failing to raise the value-added tax rate from May would cause severe harm to state finances, court papers showed, after a stand-off over the proposal risked the stability of the coalition government.



The two biggest parties in the coalition government, the African National Congress and the Democratic Alliance have been at odds over the proposal to raise VAT by 0.5 percentage points on May 1 and another 0.5 points next year.



VAT is currently at 15%.



In response to the pro-business DA challenging the legality of the VAT hike plan in court, Finance Minister Enoch Godongwana argued that any delay or removal of the VAT hike would have dire consequences on the country&#8217;s finances.



&#8220;If the rate increase is halted now, that revenue will be lost, and the state will be left without the funds needed to meet already-budgeted spending commitments,&#8221; Godongwana said in papers lodged with the court on Wednesday.



&#8220;The consequences would be severe and far-reaching. Government would be immediately forced either to cut expenditure or to increase borrowing.&#8221;



Lawmakers have the power to amend or withdraw the impending VAT hike through upcoming budget votes.



Some smaller political parties have put forward proposals that would include deeper expenditure cuts instead of a VAT hike.



Local news headlines last weekend had suggested the ANC was likely to drop its insistence on a VAT hike this year after indications that none of the parties it had been talking to would support it.



Godongwana also conceded on state broadcaster SABC on Wednesday that wrangling over a 0.5 percentage point increase in VAT might not be in the broader public interest.



South Africa&#8217;s National Treasury estimates that raising VAT will generate about 13.5 billion rand in additional revenue for the 2025/26 financial year.



(Reporting by Tannur Anders and Kopano Gumbi; Editing by Alison Williams)

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South Africa finance minister says dropping VAT hike would have severe consequences

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="4896" height="3264" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/Q3NXJVS5NBOAXBD3CUPARMV36I.avif" alt="" class="wp-image-610485"/><figcaption class="wp-element-caption">Miners process fine dust and soil as they search for gold at a miners settlement in Anka, Zamfara, Nigeria. April 21, 2016, REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



ABUJA, April 17 (Reuters)&nbsp;&#8211;&nbsp;Nigeria and South Africa have signed an accord to boost cooperation in mining, Nigeria&#8217;s mines minister said on Thursday, highlighting Abuja&#8217;s push to diversify its economy away from oil.



Mines Minister Dele Alake said the two countries will partner on mining, including geological mapping using drones, share mineral data, and jointly explore agro and energy minerals in Nigeria.



Besides oil, Nigeria is also rich in gold, limestone, lithium, iron ore and zinc. Nigeria has around 23 mineral deposits in commercial quantities.



Nigeria is seeking to revamp a mining sector that has long been underdeveloped, contributing less than 1% to its gross domestic product.



South Africa&#8217;s established mining expertise makes it a key partner in this effort, Alake said.



(Reporting by Camillus Eboh; Editing by Elisha Bala-Gbogbo and David Evans)

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Nigeria signs minerals pact with South Africa in diversification push

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-820x547.jpg" alt="" class="wp-image-505639" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A South African one rand coin sits on South African rand banknotes in this arranged photograph in Pretoria, South Africa, on Wednesday, Aug. 14, 2019. The rand ended a tumultuous week on a positive note, gaining against the dollar for a second day and heading for its first weekly advance in four as technical indicators suggested recent declines are overdone. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, April 17 (Reuters) &#8211; South Africa&#8217;s rand weakened early on Thursday against a firmer dollar, as markets awaited information on U.S. tariffs and local investors looked for news on the future of the coalition government.



At 0635 GMT, the rand traded at 18.8550 against the U.S. dollar, about 0.2% weaker than its previous close.



The dollar last traded about 0.3% stronger against a basket of currencies.



&#8220;Ahead of the Easter long weekend, investors will be reluctant to take on any significant market position. There are so many daily changes that doing so would be risky,&#8221; ETM Analytics said in a research note.



U.S. President Donald Trump met with Japanese officials on Wednesday, in one of the first rounds of face-to-face talks since his tariffs on most countries roiled markets and stoked recession fears.



Markets were also processing comments from Federal Reserve Chair Jerome Powell, who warned of the risk of slowing growth and rising prices due to tariffs.



Like other risk-sensitive currencies, the rand takes direction from global drivers such as U.S. economic policy in addition to domestic factors.



Local investors will eye developments around a budget stand-off between the two biggest parties in the coalition government, the African National Congress (ANC) and the Democratic Alliance (DA), over a proposed value-added tax (VAT) hike on May 1.



The pro-business DA voted against the budget&#8217;s fiscal framework in parliament and is challenging the VAT hike in court, raising concerns among investors over the stability of the coalition government.



&#8220;All of (South Africa&#8217;s) domestic political developments are not taking place in isolation. On the contrary, if left unresolved, they may compound an already uncertain international environment,&#8221; ETM Analytics said.



&#8220;The ZAR is therefore expected to trade cautiously with one eye on local developments and the other on the performance of the USD.&#8221;



South Africa&#8217;s benchmark 2030 government bond was firmer in early deals, with the yield down 2 basis points to 9.16%.



(Reporting by Tannur Anders; Editing by Jamie Freed)

South African Rand Rebound Snaps Streak of Weekly Losses

South African rand weaker as markets await tariff, local government news

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="410" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130007-1744293710285-gettyimages-2208850679-AA_10042025_2168828-820x410.jpeg" alt="" class="wp-image-610430" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130007-1744293710285-gettyimages-2208850679-AA_10042025_2168828-820x410.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130007-1744293710285-gettyimages-2208850679-AA_10042025_2168828-300x150.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130007-1744293710285-gettyimages-2208850679-AA_10042025_2168828-160x80.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130007-1744293710285-gettyimages-2208850679-AA_10042025_2168828-768x384.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130007-1744293710285-gettyimages-2208850679-AA_10042025_2168828.jpeg 884w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Dilara Irem Sancar | Anadolu | Getty Images</figcaption></figure>



China last week announced it was done retaliating against U.S. President Donald Trump’s tariffs, saying any further increases by the U.S. would be a “joke,” and Beijing would “ignore” them.



Instead of continuing to focus on tariffing goods, however, China has chosen to resort to other measures, including steps targeting the American services sector.



Trump has jacked up U.S. levies on select goods from China by up to 245% after several rounds of tit-for-tat measures with Beijing in recent weeks. Before calling it a “meaningless numbers game,” China last week imposed additional duties on imports from the U.S. of up to 125%.



While the Trump administration has largely focused on pressing ahead with tariff plans, Beijing has rolled out a series of non-tariff restrictive measures including widening export controls of rare-earth minerals and opening antitrust probes into American companies, such as pharmaceutical giant DuPont and IT major Google.



Before the latest escalation, in February Beijing had put dozens of U.S. businesses on a so-called “unreliable entity” list, which would restrict or ban firms from trading with or investing in China. American firms such as PVH, the parent company of Tommy Hilfiger, and Illumina, a gene-sequencing equipment provider, were among those added to the list.



Its tightening of exports of critical mineral elements will require Chinese companies to secure special licenses for exporting these resources, effectively restricting U.S. access to the key minerals needed for semiconductors, missile-defense systems and solar cells.



In its latest move on Tuesday, Beijing went after Boeing — America’s largest exporter — by ordering Chinese airlines not to take any further deliveries for its jets and requested carriers to halt any purchases of aircraft-related equipment and parts from U.S. companies, according to Bloomberg.



Having deliveries to China cut off will add to the cash-strapped plane maker’s troubles, as it struggles with a lingering quality-control crisis.



In another sign of growing hostilities, Chinese police issued notices for apprehending three people they claimed to have engaged in cyberattacks against China on behalf of the U.S. National Security Agency.



Chinese state media, which published the notice, urged domestic users and companies to avoid using American technology and replace them with domestic alternatives.



“Beijing is clearly signaling to Washington that two can play in this retaliation game and that it has many levers to pull, all creating different levels of pain for U.S. companies,” said Wendy Cutler, vice president at Asia Society Policy Institute.



“With high tariffs and other restrictions in place, the decoupling of the two economies is at full steam,” Cutler said.



<h2 class="wp-block-heading" id="h-targeting-trade-in-services"><a></a>Targeting trade in services</h2>



China is seen by some as seeking to broaden the trade war to encompass services trade — which covers travel, legal, consulting and financial services — where the U.S. has been running a significant surplus with China for years.



Earlier this month, a social media account affiliated with Chinese state media Xinhua News Agency, suggested Beijing could impose curbs on U.S. legal consultancy firms and consider a probe into U.S. companies’ China operations for the huge “monopoly benefits” they have gained from intellectual-property rights.



China’s imports of U.S. services surged more than 10-fold to $55 billion in 2024 over the past two decades, according to Nomura estimates, driving U.S. services trade surplus with China to $32 billion last year.



Last week, China said it would reduce imports of U.S. films and warned its citizens against traveling or studying in the U.S., in a sign of Beijing’s intent to put pressure on the U.S. entertainment, tourism and education sectors.



“These measures target high-visibility sectors — aviation, media, and education — that resonate politically in the U.S.,” said Jing Qian, managing director at Center for China Analysis.



While they might be low on actual dollar impact given the smaller scale of these sectors, “reputational effects — such as fewer Chinese students or more cautious Chinese employees — could ripple through academia and the tech talent ecosystem,” he added.



Nomura estimates $24 billion could be at stake if Beijing significantly step up restrictions on travel to the U.S.

108130007-1744293710285-gettyimages-2208850679-AA_10042025_2168828

China targets U.S. services and other areas as it decries ‘meaningless’ tariff hikes on goods

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108071122-1733319291213-gettyimages-2187589196-AFP_36PC93X-820x461.png" alt="" class="wp-image-610146" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108071122-1733319291213-gettyimages-2187589196-AFP_36PC93X-820x461.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108071122-1733319291213-gettyimages-2187589196-AFP_36PC93X-300x169.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108071122-1733319291213-gettyimages-2187589196-AFP_36PC93X-160x90.png 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108071122-1733319291213-gettyimages-2187589196-AFP_36PC93X-768x432.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108071122-1733319291213-gettyimages-2187589196-AFP_36PC93X.png 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Cargo ships and containers at Qingdao port in eastern China’s Shandong province on Dec. 4, 2024. Stringer | Afp | Getty Images</figcaption></figure>



The World Trade Organization (WTO) warned on Wednesday that the outlook for global trade has “deteriorated sharply” in the wake of U.S. President Donald Trump’s tariffs regime.



“The outlook for global trade has deteriorated sharply due to a surge in tariffs and trade policy uncertainty,” the WTO said in its latest “Global Trade Outlook and Statistics” report out Wednesday.



Based on the tariffs currently in place, and including a 90-day suspension of “reciprocal tariffs,” the volume of world merchandise trade is now expected to decline by 0.2% in 2025, before posting a “modest” recovery of 2.5% in 2026.



The decline is anticipated to be particularly steep in North America, where exports are forecasted to drop by 12.6% this year.



The WTO also warned that “severe downside risks exist,” including the application of “reciprocal” tariffs and a broader spillover of policy uncertainty, “which could lead to an even sharper decline of 1.5% in global goods trade,” particularly hurting export-oriented, least-developed countries.



The recent tariff disturbances follow a strong year for world trade in 2024, during which merchandise trade grew 2.9% and commercial services trade expanded by 6.8%, the WTO said.



The new estimate of a 0.2% decline in world trade for 2025 is nearly three percentage points lower than it would have been under a “low tariff” baseline scenario, the WTO added, and marks a significant reversal from the start of the year when the trade body’s economists expected to see continued trade expansion supported by improving macroeconomic conditions.



“Risks to the forecast include the implementation of the currently suspended reciprocal tariffs by the United States, as well as a broader spillover of trade policy uncertainty beyond U.S.-linked trade relationships,” the WTO said.



“If enacted, reciprocal tariffs would reduce world merchandise trade growth by an additional 0.6 percentage points, posing particular risks for least-developed countries (LDCs), while a spreading of trade policy uncertainty (TPU) would shave off a further 0.8 percentage points. Taken together, the reciprocal tariffs and spreading TPU would lead to a 1.5% decline in world merchandise trade volume in 2025.”



<figure class="wp-block-image"><img decoding="async" src="https://image.cnbcfm.com/api/v1/image/108127151-17438709982025-04-04t234656z_1270263179_rc2xpdazxgbd_rtrmadp_0_usa-trump-tariffs.jpeg?v=1744047527&amp;w=1858&amp;h=1045&amp;vtcrop=y" alt="U.S. President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, D.C., U.S., April 2, 2025. REUTERS/Carlos Barria"/><figcaption class="wp-element-caption">U.S. President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, D.C., on April 2, 2025. Carlos Barria | Reuters</figcaption></figure>



Trump stunned trading partners and global markets in early April, when he announced a raft of “reciprocal” tariffs on imports from more than 180 countries. Beijing was hit the hardest of all, with the U.S. duty on Chinese imports now effectively totaling 145%. China in turn hit back at Washington with retaliatory tariffs of up to 125% on U.S. imports.



Widespread market turbulence following the tariffs announcement prompted a temporary climbdown by Trump, with the president last week announcing that the new duties on imports from most trading partners would be reduced to 10% for 90 days in order to allow for trade negotiations with Washington’s counterparts.



The WTO said in its Wednesday report that the impact of recent trade policy changes is likely to vary sharply from region to region.



In the adjusted forecast, North America now subtracts 1.7 percentage points from global merchandise trade growth in 2025, turning the overall figure negative.



Meanwhile, Asia and Europe continue to contribute positively, but less than in the baseline scenario, with Asia’s input halved to 0.6 percentage points.



The disruption in U.S.-China trade is expected “to trigger significant trade diversion,” the WTO added, raising concerns among third markets about increased competition from China.



“Chinese merchandise exports are projected to rise by 4% to 9% across all regions outside North America as trade is redirected. At the same time, U.S. imports from China are expected to fall sharply in sectors such as textiles, apparel and electrical equipment, creating new export opportunities for other suppliers able to fill the gap,” the trade organization remarked, noting that this could open the door for some least-developed countries to increase their exports to the U.S. market.

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Global trade outlook has ‘deteriorated sharply’ amid Trump tariff uncertainty, WTO warns

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1080" height="720" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/N7NTFVJZNNKH5L7JQ3FQOLPYO4.avif" alt="" class="wp-image-610095"/><figcaption class="wp-element-caption">A view shows a PwC Australia logo in Melbourne, Australia, March 24, 2025. REUTERS/Hollie Adams/File Photo</figcaption></figure>



April 16 (Reuters)&nbsp;&#8211;&nbsp;PwC shut operations in nine Sub-Saharan African countries last month following a strategic review, the Big Four accounting firm said, in response to a media report that said the company exited over a dozen countries to avoid scandals.



PwC, which operates as a global network of locally owned partnerships, has shut operations in the Ivory Coast, Gabon, Cameroon, Madagascar, Senegal, the Democratic Republic of Congo (DRC), Congo Republic, Republic of Guinea and Equatorial Guinea, it said in a statement published on its website on March 31.



The accounting firm directed Reuters to the statement in response to queries on a Financial Times article published earlier in the day that said PwC had exited multiple countries that were deemed too small, risky or unprofitable.



The decision came due to mounting differences with local partners, who said they lost over a third of their business in recent years after pressure from PwC&#8217;s global executives to drop risky clients, the FT said, citing people familiar with the matter.



The PwC statement did not give a reason for the move.



The FT report, citing a register of PwC entities and local news reports, said PwC had also cut ties with member firms in Zimbabwe, Malawi and Fiji.



PwC has faced an exodus of clientele and layoffs across countries since last year.



PwC&#8217;s mainland China unit was hit with a $62 million fine and six-month suspension for audit failures related to property developer China Evergrande&#8217;s&nbsp;3333.HK&nbsp;$78 billion fraud.



Last month, Britain fined PwC about $6 million in relation to the audit of Wyelands Bank for financial year 2019.



The firm is working with Saudi Arabia and its sovereign wealth fund to mend relations after the kingdom suspended activities between the $925 billion fund&#8217;s holding company and PwC. ($1 = 0.7531 pounds)



(Reporting by Bipasha Dey, Kanjyik Ghosh and Harshita Meenaktshi in Bengaluru; Editing by Savio D&#8217;Souza and Mrigank Dhaniwala)

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PwC shuts operations in nine African countries

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="768" height="402" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1yXNHy.jpg" alt="" class="wp-image-610037" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1yXNHy.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1yXNHy-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1yXNHy-160x84.jpg 160w" sizes="auto, (max-width: 768px) 100vw, 768px" /><figcaption class="wp-element-caption">A general view of people visiting the Trafalgar Tavern pub decorated with bunting and string lights on the bank of the River Thames in Greenwich on December 16, 2023 in London, United Kingdom.  John Keeble | Getty Images News | Getty Images</figcaption></figure>



The U.K.’s annual inflation rate fell to 2.6% in March, coming in below analyst expectations, according to data released by the Office for National Statistics (ONS) on Wednesday.



Economists polled by Reuters had anticipated the consumer price index would hit 2.7% in the twelve months to March.



The rate of price rises in Britain hit 2.8% in February, after rising sharply to 3% in January.



Core inflation, which excludes more volatile energy, food, alcohol and tobacco prices, rose by 3.4% in the year to March, down slightly from 3.5% in February.



The largest downward contributions to the monthly change in the inflation rate came from recreation and culture, and motor fuels, the ONS said, while the largest upward driver was clothing.



Sterling was up 0.25% against the U.S. dollar at $1.3265, following the data release.



The latest data will be analyzed closely by policymakers at the Bank of England,&nbsp;who are expected to cut interest rates when they next convene on May 8. The BOE held rates at 4.5% at its previous meeting in March amid a forecasted inflation hike and uncertainty over economic growth and global trade under U.S. President Donald Trump’s tariffs.



There was good news for the U.K. last week, when the latest monthly growth data showed that the British economy grew by 0.5% month-on-month in February. The U.K. is also hoping to sign a trade deal with Washington, having escaped relatively unscathed from Trump’s tariffs regime with just a baseline 10% duty on imports to the States.



Traders will be looking closely at the BOE’s next policy statement on Thursday for its assessment of the economic outlook for the country.



In a statement out in March, the central bank said “global trade policy uncertainty has intensified, and the United States has made a range of tariff announcements, to which some governments have responded.”



“Other geopolitical uncertainties have also increased and indicators of financial market volatility have risen globally,” it added.



The BOE warned in February that it expected inflation to temporarily rise to 3.7% in the third quarter of this year, as energy costs are set to accelerate. At the time, it also halved its 2025 growth forecast for the U.K. to 0.75%.



Ruth Gregory, deputy chief U.K. economist at Capital Economics, was among the analysts noting that the slowdown in inflation was not expected to last.



“The dip &#8230; won’t be sustained for long, with inflation set to rise to around 3.5% in the coming months. But we think a weak economy will quash inflation eventually and that the tariff shock has tilted the balance of risks towards lower inflation and faster falls in interest rates,” she said in emailed comments Wednesday.



“For now, we are sticking to our view that inflation will gradually fall to 2.0% in 2026. But the risks to that forecast appear to be increasingly skewed to the downside,” she added.

AA1yXNHy

UK inflation slows to cooler-than-expected 2.6% in March

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3333" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/TAOPHOKM7NIDBDA6H6FJ4X5RX4.avif" alt="" class="wp-image-609776"/><figcaption class="wp-element-caption">A general view of Tejuosho Market in Yaba, in Nigeria&#8217;s commercial capital Lagos, Nigeria, April 15, 2025. REUTERS/Sodiq Adelakun</figcaption></figure>



ABUJA, April 15 (Reuters) &#8211; Nigeria&#8217;s headline consumer inflation edged up to 24.23% year-on-year in March from 23.18% in February, its statistics agency said on Tuesday.



A report by the National Bureau of Statistics showed price rises for food and non-alcoholic beverages were the biggest contributor to annual inflation.



Inflation in Africa&#8217;s most populous country soared to repeated 28-year peaks last year, spurred by President Bola Tinubu&#8217;s moves to curb costly subsidies and devalue the naira currency after he came to power in 2023.



A rebasing exercise by the statistics bureau, in which the items in its reference basket were reweighted and the comparison period was updated from 2009 to 2024, saw the annual inflation rate fall from 34.80% in December to 24.48% in January.



(Reporting by Elisha Bala-Gbogbo; Additional reporting by Mohd Edrees and Bhargav Acharya; Editing by Alexander Winning)

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Nigeria’s annual inflation picks up to 24.23% in March

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3333" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/V6NUKK56AFOQRIE7VW57VUR2DU.avif" alt="" class="wp-image-609645"/><figcaption class="wp-element-caption">Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., April 14, 2025. REUTERS/Brendan McDermid/File Photo</figcaption></figure>



LONDON, April 15 (Reuters)&nbsp;&#8211;&nbsp;Global investors have slashed their holdings of U.S. stocks by a record amount in the past two months, a trend that is likely to continue given a record number of managers say they plan to keep cutting their exposure, BofA Global Research said on Tuesday.



Respondents to BofA&#8217;s monthly survey of fund managers were a net 36% underweight U.S. equities, the most in nearly two years, a number that has plunged by 53 percentage points since February, the biggest such fall on their records.



A majority think a trade war that triggers global recession is the biggest risk for markets, according to the survey.



U.S. President Donald Trump&#8217;s aggressive tariff plans have sparked a selloff in U.S. assets, including stocks, the dollar and Treasury bonds. The market rebounded on Monday, but the broad-market S&amp;P 500 index is still down about 8% so far this year.



BofA polled 164 investors with $386 billion of assets under management.



There were further signs of nervousness in the survey, particularly about U.S assets.



A net 42% of investors said they expected a global recession, the most since June 2023 and the fourth-highest level in the past 20 years.



In addition, 73% said they thought the theme of &#8220;U.S. exceptionalism&#8221; has peaked &#8211; the idea has powered markets in recent months &#8211; and relatedly 49% said they thought the most crowded trade in markets was now &#8220;long gold&#8221;, displacing bets on U.S. tech giants for the first time in 24 months.



A net 61% expect the U.S. dollar to depreciate over the next 12 months, the most since May 2006. The currency has tumbled sharply against most others in the past few weeks, with the euro, Japanese yen and Swiss franc all gaining sharply.



(Reporting by Alun John; Editing by Amanda Cooper and Hugh Lawson)

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Global investors dump US stocks at record pace, BofA survey says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="768" height="402" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1CW0me.jpg" alt="" class="wp-image-609642" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1CW0me.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1CW0me-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1CW0me-160x84.jpg 160w" sizes="auto, (max-width: 768px) 100vw, 768px" /><figcaption class="wp-element-caption">A shopper at a farmer’s market in San Francisco, California, U.S., on Thursday, March 27, 2025. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



A day without major tariff developments from U.S. President Donald Trump’s administration is, for markets, a period of cautious optimism (or at least what passes as “optimism” in such unusual times). There was breathing room on Monday for markets to make tentative moves upward, especially after the news out late Friday of a last-minute exception for electronics from so-called reciprocal tariffs.&nbsp; White House officials are still making their rounds on major news channels to preach the sense of Trump’s economic policy. The latest to do so is National Economic Council Director Kevin Hassett, who, on Fox Business, said Monday the country would “100% not” fall into a recession this year. Consumers don’t share that faith. A Federal Reserve survey, conducted in March and released on Monday, is the latest in a series of consumer polls that show sentiment over the economy slumping. Any gains in the market, then, could last only as far as tariff don’t run further amok and cause economic damage, despite White House officials’ attempts to reassure on the latter front.



<h2 class="wp-block-heading" id="h-what-you-need-to-know-today"><a></a>What you need to know today</h2>



Markets across the globe rise U.S. stocks rose Monday, aided by a slight recovery in tech names on news of a tariff exemption for electronic goods. The S&amp;P 500 added 0.79%, the Dow Jones Industrial Average climbed 0.78% and the Nasdaq Composite advanced 0.64%. Asia-Pacific markets were mostly positive Tuesday. India’s Nifty 50 popped more than 2% at its open. Market watchers are awaiting the country’s March inflation figures, out later today. China’s CSI 300 fell around 0.3% amid UBS downgrading its forecast of the country’s 2025 economic growth.



Hassett says no chance of recession U.S. National Economic Council Director Kevin Hassett said Monday that “more than 10” countries had made “very good, amazing” trade deal offers to the U.S. He also said that there was no chance at all that the U.S. will experience a recession in 2025. A Federal Reserve Bank of New York survey released the same day — but conducted before April 2 — showed consumer worries in March growing over inflation, unemployment and the stock market.



Volatility from zero-day options Zero-day-to-expiration options are partly to blame for the wild swings in the stock market recently. Zero-day options, which are contracts that expire the same day they’re traded, have surged 23% in trading volume from the start of the year to April, according to JPMorgan data. “We find that 0DTE (+1DTE) have been instrumental in driving more intraday volatility, Maxwell Grinacoff, UBS’ head of U.S. equity derivatives research, said in a note.



Nvidia to build supercomputer in U.S. Nvidia said Monday it plans to produce up to $500 billion of artificial intelligence infrastructure in the U.S. via its manufacturing partnerships over the next four years. Its Blackwell AI chips have started production in Phoenix at Taiwan Semiconductor plants, the chipmaker wrote in a blog post. Nvidia is also building manufacturing plants in Texas to produce AI super computers — the first time Nvidia will make one entirely in the U.S.



Semiconductor support package amid probe South Korea on Tuesday announced a support package of 33 trillion won ($23.25 billion) for its semiconductor industry. That amount is about a quarter more than the 26 trillion won committed last year, according to a press release from the finance ministry, possibly in response to U.S. trade policy. The U.S. Commerce Department is conducting a national security investigation into imports of semiconductor technology and related downstream products, according to a Federal Register notice put online Monday. 



‘Prepare to be fooled’ on tariffs: Morgan Stanley Despite recent concessions on tariffs by Trump, Morgan Stanley cautioned investors not to let their guard down. “Investors should prepare to be fooled many more times,” the firm’s strategists led by Matthew Hornbach said in a note to clients titled “Fool Me Once, Shame On You. Fool Me Twice, Shame On Me.”



<h2 class="wp-block-heading" id="h-and-finally"><a></a>And finally&#8230;</h2>



<figure class="wp-block-image"><img decoding="async" src="https://image.cnbcfm.com/api/v1/image/108131519-1744643962951-gettyimages-2209073831-ECP_fc1250932.jpeg?v=1744678236&amp;w=1858&amp;h=1045&amp;vtcrop=y" alt="HANGZHOU, CHINA - APRIL 11 2025: A worker rests in a factory making steel bike rims for export to the U.S. in Hangzhou in east China's Zhejiang province Friday, April 11, 2025. (Photo credit should read Feature China/Future Publishing via Getty Images)"/><figcaption class="wp-element-caption">A worker rests in a factory making steel bike rims for export to the U.S. in Hangzhou in east China’s Zhejiang province Friday, April 11, 2025.  Feature China | Future Publishing | Getty Images</figcaption></figure>



If China is going to lose some manufacturing as a result of&nbsp; Trump’s tariffs, the U.S. manufacturing sector won’t be the main beneficiary, according to a new CNBC Supply Chain Survey. The Trump administration says a reshoring boom is coming, but most companies tell CNBC that the costs could as much as double to bring supply chains back and instead a new search for low-tariff regimes around the world will commence.



Nearly three-quarters of those surveyed (74%) said cost was the top reason for saying they would not be reshoring production, followed by the challenge of finding skilled labor (21%). The Trump administration has promised&nbsp;tax cuts for companies&nbsp;that bring back manufacturing, but the survey found taxes lower in the ranking of costs that impact manufacturing site decision making.

AA1CW0me

Consumers don’t agree with the White House that the economy will be fine

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107241090-1684160036619-gettyimages-1255019394-AFP_33F44YL-820x547.jpeg" alt="" class="wp-image-425198" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107241090-1684160036619-gettyimages-1255019394-AFP_33F44YL-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107241090-1684160036619-gettyimages-1255019394-AFP_33F44YL-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107241090-1684160036619-gettyimages-1255019394-AFP_33F44YL-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107241090-1684160036619-gettyimages-1255019394-AFP_33F44YL-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107241090-1684160036619-gettyimages-1255019394-AFP_33F44YL-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107241090-1684160036619-gettyimages-1255019394-AFP_33F44YL-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Elon Musk is the wealthiest person in the world again.
Michel Euler | AFP | Getty Images</figcaption></figure>



MASERU, (Reuters) &#8211; Lesotho has granted a licence to Elon Musk&#8217;s Starlink to operate a satellite network and provide satellite internet services, the country&#8217;s communications authority said on Monday.



The licence granted to Starlink Lesotho will be valid for 10 years, Lesotho Communications Authority (LCA) said in a statement.



The development comes as Lesotho seeks to engage with the United States on reciprocal trade tariffs after it was hit with a 50% tariff- the highest levy on U.S. President Donald Trump&#8217;s list of target economies announced earlier this month but later said would temporarily be lowered.



The LCA said the &#8220;landmark decision&#8221; to grant a licence to Starlink marked &#8220;a significant step forward in the country&#8217;s digital transformation&#8221; and that it underscored &#8220;the authority&#8217;s unwavering commitment to enabling a competitive, transparent, and forward-looking communications sector that fuels economic growth and fosters innovation.&#8221;



Trump on March 5, in an address to the U.S. Congress referred to Lesotho as a country &#8220;no one has heard of&#8221; to laughs from his audience. Lesotho&#8217;s foreign minister, Lejone Mpotjoane, later said the remark was &#8220;quite insulting&#8221;.



Starlink, whose parent company is SpaceX, submitted its licence application in April 2024 but it faced opposition including from civil society groups such as SECTION 2.



&#8220;By proceeding with this decision, the LCA has not only disregarded the valid objections of local stakeholders but has also compromised the integrity and credibility of the regulatory process,&#8221; said SECTION 2 coordinator Kananelo Boloetse.



&#8220;Chief among these (objections) was the fact that Starlink Lesotho is 100% foreign-owned, a factor that should have weighed heavily in a licensing process that ought to safeguard national interests and promote inclusive local participation.&#8221;



Starlink operates in many African countries, but has faced licensing obstacles in places like South Africa and Namibia.



(Reporting by Marafaele Mohloboli; Writing by Olivia Kumwenda-Mtambo; Editing by Susan Fenton)

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Lesotho grants operating licence to Musk’s Starlink

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="792" height="528" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/403148735-1.jpg" alt="" class="wp-image-609358" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/403148735-1.jpg 792w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/403148735-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/403148735-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/403148735-1-768x512.jpg 768w" sizes="auto, (max-width: 792px) 100vw, 792px" /><figcaption class="wp-element-caption">The Goldman Sachs headquarters in New York. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



A growing majority of America’s top executives now expects the U.S. economy to enter a recession in the near future, according to a survey released Monday.



Of the more than 300 CEOs polled in April, 62% said they forecasted a recession or other economic downturn in the next six months, according to Chief Executive, an industry group that runs the survey. That’s up from 48% who said the same in March.



Chief Executive’s data underscores the growing concern within corporate America around the future of the U.S. economy. Fears about a forthcoming recession hit a boiling point in the last two weeks, as President Donald Trump’s on-again-off-again tariff policy ratcheted up volatility in financial markets and stirred panic among some consumers.



Indeed, around three-fourths of CEOs surveyed said tariffs would hurt their businesses in 2025. About two-thirds said they did not support Trump’s proposed levies, many of which are currently on pause.



<h2 class="wp-block-heading" id="h-economic-anxiety-among-executives"><a></a>Economic anxiety among executives</h2>



The monthly survey, which has run since 2002, includes several data points that paint a concerning picture of how America’s foremost business leaders view the economy.



An index of CEOs’ views on current business conditions tumbled 9% in April, continuing its decline after plunging 20% in the prior month. The measure now sits at its lowest level since the early months of the pandemic in 2020.



When forecasting business conditions a year out, CEOs held their view steady from March. Still, these readings were the lowest since late 2012 and have tanked around 29% from the end of 2024.



The survey found that more than four out of five chief executives project costs spiking this year, which is no surprise given the ongoing negotiations over import taxes between the White House and foreign countries. Around half forecast their percentage increases in expenses to be in the double digits.



In this vein, just 37% said they believe their companies’ profits will increase. That’s a steep drop from the 76% who gave this response in January.



To be sure, Chief Executive’s data set included a few bright spots. Slightly over half of respondents said they foresee business conditions bettering over the next year, an increase from the 39% share seen a month earlier.



Many CEO may be getting some tariff relief as well. Trump late Friday announced that smartphones and PCs would be exempt from duties, though Commerce Secretary Howard Lutnick said Sunday that these exemptions would be temporary.



Chief Executive’s data comes as U.S. business leaders have started flashing warning signs on the country’s economic future.



JPMorgan Chase CEO Jamie Dimon said Friday that he expects earnings estimates for S&amp;P 500 firms to fall due to the uncertainty around Trump’s levies. Also on Friday, BlackRock CEO Larry Fink warned that the U.S. economy may have already weakened to the point of growth coming in negative.



“I think we’re very close, if not in, a recession now,” Fink said on CNBC’s “Squawk on the Street.”

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More than 60% of CEOs expect a recession in the next 6 months as tariff turmoil grows, survey says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="3788" height="2479" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/QF6LDDNUPJJ4RBWGOZMZII2Q2A.avif" alt="" class="wp-image-609327"/><figcaption class="wp-element-caption">Former Deputy Finance Minister Mcebisi Jonas gestures ahead of the Judicial Commission of Inquiry probing state capture in Johannesburg, South Africa August 24, 2018. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, April 14 (Reuters)&nbsp;&#8211;&nbsp;South African President Cyril Ramaphosa on Monday announced former deputy&nbsp;finance minister&nbsp;Mcebisi Jonas as a special envoy to the United States.



Jonas is currently independent non-executive chairman of telecommunications company MTN Group, a role he will continue to hold alongside the envoy position.



&#8220;Jonas is entrusted with the responsibility to advance South Africa&#8217;s diplomatic, trade and bilateral priorities. He will lead negotiations, foster strategic partnerships and engage with U.S. government officials and private-sector leaders to promote our nation&#8217;s interests,&#8221; Ramaphosa&#8217;s office said in a statement.



Relations between South Africa and the U.S. have soured badly since U.S. President Donald Trump&#8217;s return to the White House in January.



The U.S. has cut financial aid to South Africa, citing disapproval of its land reform policies and its genocide case against Washington&#8217;s ally Israel at the International Court of Justice, and expelled South Africa&#8217;s ambassador last month.



Jonas was South Africa&#8217;s deputy finance minister between 2014 and 2017.



An outspoken critic of corruption during his time in government, he featured prominently in a judicial inquiry into graft and influence-peddling during former president Jacob Zuma&#8217;s leadership.



Jonas told the inquiry he was offered the finance minister job as well as large sums of money by the Gupta brothers, friends of Zuma. Zuma and the Guptas denied wrongdoing.



(Reporting by Bhargav Acharya and Tannur Anders; Editing by Alexander Winning)

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South African president names Jonas special envoy to US

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/ZGWQ5NVZQJPYVNZ6MYTGC7URE4-820x573.jpg" alt="" class="wp-image-609274" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/ZGWQ5NVZQJPYVNZ6MYTGC7URE4-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/ZGWQ5NVZQJPYVNZ6MYTGC7URE4-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/ZGWQ5NVZQJPYVNZ6MYTGC7URE4-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/ZGWQ5NVZQJPYVNZ6MYTGC7URE4-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/ZGWQ5NVZQJPYVNZ6MYTGC7URE4-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/ZGWQ5NVZQJPYVNZ6MYTGC7URE4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South African President Cyril Ramaphosa answers lawmakers&#8217; questions at the parliament in Cape Town, South Africa, March 11, 2025. REUTERS/Esa Alexander South African President Cyril Ramaphosa answers lawmakers&#8217; questions at the parliament in Cape Town, South Africa, March 11, 2025. REUTERS/Esa Alexander</figcaption></figure>



JOHANNESBURG, April 14 (Reuters)&nbsp;&#8211;&nbsp;For South African beverage company owner, Ndumiso Madlala, the impending value-added tax hike could spell trouble for his small-scale business that makes alcoholic ginger beer and non-alcoholic drinks.



The National Treasury plans to raise VAT by 1-percentage-point over two years from May 1, as part of measures to bolster government revenue. Currently, VAT is set at 15%.



For Madlala, the increase could force him to raise prices or lower margins, both undesirable options for a business like his in a tough economic environment.



&#8220;For us as small guys, you first hit a problem of being competitive on price,&#8221; Madlala told Reuters. &#8220;Big companies can just switch prices at any time, they can reduce their price to drive the volume up. For us, that&#8217;s something that we can&#8217;t do.&#8221;



The VAT increase comes as the South African economy faces several headwinds including a slow recovery following years of unstable electricity supply, domestic political tensions and global trade wars.



Until recently, power cuts had been a drag on South Africa&#8217;s economic growth for more than a decade, escalating costs for businesses as they resorted to alternative energy sources like diesel-run generators.



On top of that, businesses and households are grappling with other rising costs, such as increases in electricity and water tariffs.



While the treasury intends to expand the basket of zero-rated VAT items to shield low-income households from the full impact, some economists argue this may not be enough as the wider population &#8211; including the middle class &#8211; feels the pinch of rising costs.



&#8220;VAT (hikes) are never a good idea… the ones that are going to be hard hit by any increases in VAT are the middle class to the poor,&#8221; said economist Nomahlubi Jakuja.



&#8220;South Africa already has high levels of unemployment&#8230; and then adding an additional tax on daily goods, it decreases the purchasing power of ordinary South Africans,&#8221; she added.



The VAT hike, part of revenue measures in the 2025 budget, has also deepened the schism between the African National Congress and the Democratic Alliance &#8211; partners in government &#8211; threatening to sink South Africa&#8217;s first attempt at coalition rule in its 30-year democratic era.



The pro-business DA, the junior partner in the coalition, voted against the budget and went to court to try to block it.



Despite the uncertainty, Madlala remains optimistic, banking on his business&#8217;s reputation and his popular ginger products.



&#8220;My comfort is the brand that I own, which is Dragonfire Ginger. It&#8217;s one of its kind,&#8221; he said. &#8220;So we find that our loyal base of customers comes back for our products all the time.&#8221;



(Additional reporting by Shafiek Tassiem in Cape Town; Editing by Olivia Kumwenda-Mtambo and Ros Russell)

South African President Cyril Ramaphosa answers lawmakers’ questions at the parliament, in Cape Town

South African businesses on edge as VAT hike looms

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="405" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130695-17443731112025-04-10t210317z_1230912817_rc28vdaw0pbf_rtrmadp_0_usa-trump-tariffs.jpeg" alt="" class="wp-image-609254" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130695-17443731112025-04-10t210317z_1230912817_rc28vdaw0pbf_rtrmadp_0_usa-trump-tariffs.jpeg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130695-17443731112025-04-10t210317z_1230912817_rc28vdaw0pbf_rtrmadp_0_usa-trump-tariffs-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130695-17443731112025-04-10t210317z_1230912817_rc28vdaw0pbf_rtrmadp_0_usa-trump-tariffs-160x90.jpeg 160w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">Dado Ruvic | Reuters</figcaption></figure>



China’s Commerce Ministry called the U.S. tariff exemptions a “small step” and urged U.S. President Donald Trump to “completely abolish” the reciprocal tariffs, which include a 145% duty on imports from China.



“We urge the U.S. to heed the rational voices of the international community and domestic parties, take a big stride in correcting its mistakes, completely abolish the wrongful action of ‘reciprocal tariffs,’ and return to the correct path of resolving differences through equal dialogue based on mutual respect,” the ministry said in an online statement, according to a CNBC translation.



The ministry also said China is “evaluating the relevant impact” of the tariff exemptions on some tech products announced late Friday.



The White House did not immediately respond to CNBC’s request for comment.



U.S. Trade Representative Jamieson Greer said Sunday that “right now,” there are not any plans for Trump and Chinese President Xi Jinping to speak.



“This issue is truly at the leaders level,” he said on CBS News’ Face the Nation.



The response in China to U.S. tariffs can be seen in both state media and social media. The recent exemptions are being presented domestically as Trump is backing down and further evidence that Chinese supply chains are not easily replaceable by U.S. companies.



“Public opinion widely views this as another retreat by the U.S. government on its tariff policies,” the official Beijing Daily wrote.



On China’s popular social media platform Weibo, the hashtag “Trump administration retreats again” ranked No. 2 on the hot search list.



The Trump administration late Friday exempted some widely used tech devices and components, including smartphones, computers, semiconductors, solar cells and flash drives, from reciprocal tariffs, according to guidance from U.S. Customs and Border Protection.



The move was viewed as a major win for tech giants, including Apple, which manufacture many products in China. But the long-lasting effects on the U.S. economy and small businesses from the China tariffs may be irreversible, CNBC previously reported.



A 20% tariff on all Chinese products still remains in effect, despite the tariff exemption announcement.



—&nbsp;CNBC’s Eunice Yoon contributed to this report

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China urges Trump to correct mistakes and heed ‘rational voices’ on reciprocal tariffs

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130446-17443187092025-04-10t205242z_1564031578_rc28vdaqwvty_rtrmadp_0_usa-trump-tariffs-820x547.jpeg" alt="" class="wp-image-608268" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130446-17443187092025-04-10t205242z_1564031578_rc28vdaqwvty_rtrmadp_0_usa-trump-tariffs-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130446-17443187092025-04-10t205242z_1564031578_rc28vdaqwvty_rtrmadp_0_usa-trump-tariffs-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130446-17443187092025-04-10t205242z_1564031578_rc28vdaqwvty_rtrmadp_0_usa-trump-tariffs-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130446-17443187092025-04-10t205242z_1564031578_rc28vdaqwvty_rtrmadp_0_usa-trump-tariffs-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130446-17443187092025-04-10t205242z_1564031578_rc28vdaqwvty_rtrmadp_0_usa-trump-tariffs-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130446-17443187092025-04-10t205242z_1564031578_rc28vdaqwvty_rtrmadp_0_usa-trump-tariffs-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">U.S. and Chinese flags and a “125% tariffs” label are seen in this illustration taken April 10, 2025.  Dado Ruvic | Reuters</figcaption></figure>



China on Friday retaliated against U.S. President Donald Trump’s reciprocal tariffs by raising its levies on U.S. goods to 125% from 84%, the Chinese finance ministry said.



“Even if the U.S. continues to impose higher tariffs, it will no longer make economic sense and will become a joke in the history of world economy,” the ministry said in a statement, according to a CNBC translation.



“With tariff rates at the current level, there is no longer a market for U.S. goods imported into China,” the statement noted, adding that “if the U.S. government continues to increase tariffs on China, Beijing will ignore.”



The Trump administration confirmed to CNBC on Thursday that the U.S. tariff rate on Chinese imports now effectively totals 145%. Trump’s latest executive order boosted reciprocal tariffs on Beijing to 125%, stacked on top of a combined 20% fentanyl-related tariff imposed in February and March.



“This is the end of the escalation in terms of bilateral tariff rates. Both China and the US have sent clear messages, there is no point of raising tariffs further,” said Zhiwei Zhang, president and chief economist at Pinpoint Asset Management.



The next step would be to evaluate the damage to economic activities in the U.S. and China, Zhang said, adding that there is no sign that the two governments would start negotiations and avoid major disruption in the global supply chains.



Unlike the previous rounds of retaliatory measures, Beijing has refrained from announcing further export control measures or widening its so-called “unreliable entity list”&nbsp;with the addition of more&nbsp;American firms, which would subject them to further restrictions while operating in China.



Despite the latest escalation, a spokesperson of China’s commerce ministry reiterated in a separate statement Friday that Beijing is open to negotiate with the U.S. on an equal footing.



Hopes for a U.S.-China deal to resolve trade tensions have faded fast as Beijing has been hitting back in the last week with tit-for-tat duties on American goods and wide-ranging restrictions on U.S. businesses.



“It’s unfortunate that the Chinese actually don’t want to come and negotiate, because they are the worst offenders in the international trading system,” U.S. Treasury Secretary Scott Bessent told Fox Business on Wednesday after China’s raised tariffs to 84%.



“They have the most imbalanced economy in the history of the modern world, and I can tell you that this escalation is a loser for them,” Bessent said.



Goldman Sachs on Thursday cut its China GDP forecast to 4% given the drag from U.S. trade tensions and slower global growth.



While Chinese exports to the U.S. only account for about 3 percentage points of China’s total GDP, there’s still a significant impact on employment, Goldman Sachs analysts said. They estimate around 10 million to 20 million workers in China are involved with U.S.-bound export businesses.



China on Friday reiterated that it will continue to “resolutely counter-attack and fight to the end” if the U.S. continues to infringe on China’s interests.



In a&nbsp;<a href="https://www.fmprc.gov.cn/zyxw/202504/t20250411_11592994.shtml" target="_blank" rel="noreferrer noopener">meeting</a>&nbsp;with Spanish Prime Minister Pedro Sánchez on Friday, Chinese President Xi Jinping said “there is no winner in a tariff war and going against the world will only isolate itself,” according to a CNBC-translated government readout. The two leaders pledged to deepen ties in areas including trade, investment and technological innovation.



The White House did not immediately respond to CNBC’s request for comment.



— CNBC’s Lim Hui Jie and Evelyn Cheng contributed to this report.

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South Africa finance minister says dropping VAT hike would have severe consequences

Nigeria signs minerals pact with South Africa in diversification push

South African rand weaker as markets await tariff, local government news

China targets U.S. services and other areas as it decries ‘meaningless’ tariff hikes on goods

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