The US and China headed into a second day of talks on Sunday and discussed trade, the economy and Tik Tok during a day of high-level talks in Madrid, a Treasury official confirmed.

The US delegation team is being led by Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer and the Chinese team is being headed up by Vice Premier He Lifeng. Both sides met for six hours on Sunday.

President Trump told reporters later on Sunday that the talks are “going fine."

On Friday, Trump said that his patience with Russian President Putin was "running out fast" and threatened Moscow with new economic sanctions as efforts to mediate ceasefire talks with Ukraine have fallen flat.

“It’ll be hitting very hard on with sanctions to banks and having to do with oil and tariffs also,” Trump said Friday in an interview on Fox News.

Elsewhere, The US Treasury called on G7 countries to hit China and India with what it called "meaningful tariffs" for buying Russian oil. This follows Trump's request that the EU impose 100% tariffs on New Delhi and Beijing to squeeze Russia over its war in Ukraine, the Financial Times reported.

At the same time, Trump said the US and India have agreed to resume trade negotiations after weeks of back and forth over India's purchase of Russian oil.

China urged Mexico on Friday to "think twice" before levying tariffs, a warning that could signal Beijing's readiness to retaliate over a move it sees as giving in to demands from President Trump.

Mexico said last week it will raise tariffs on automobiles from China and other Asian countries to 50%.

Meanwhile, the Supreme Court said it would quickly review 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.

US Treasury Secretary Scott Bessent has warned in recent days that the US would have to refund around "half" the tariff revenue it has collected if the Supreme Court rules the president overstepped his authority, which has been the determination of a federal appeals court and the Court of International Trade.

Trump has suggested that the US may have to "unwind" existing trade deals, including with the European Union, Japan, and South Korea, if the Supreme Court doesn't uphold his tariffs.

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.

Bloomberg reports:

President Donald Trump’s most concrete step to rein in unprecedented US budget deficits — sweeping tariff hikes — faces the danger of a legal reversal that would put the nation’s finances on an even shakier footing.

Trump and top aides including Treasury Secretary Scott Bessent have argued that federal borrowing needs will shrink in coming years as Republican tax cuts, reduced regulation and big-ticket investment pledges from companies and foreign nations stoke economic growth and goose federal revenues. Many economists question that outlook, but few disagree that tariff hikes are indeed generating a new stream of cash for the Treasury.

Customs duties — paid overwhelmingly by American importers — have totaled $165 billion for the 2025 fiscal year with one month left to go, Treasury Department figures showed Thursday. That’s up some $95 billion on the year before.

Most of the jump is thanks to tariffs Trump imposed using the International Emergency Economic Powers Act (IEEPA) Bloomberg Economics analysis shows. But an Aug. 29 federal appeals court ruling has called the legality of that maneuver into question. Unless the Supreme Court, which has agreed to review the case, decides in the president’s favor, Bessent has warned the government could be liable to refund large sums of money.

Read more here.

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:

“It’ll be hitting very hard on with sanctions to banks and having to do with oil and tariffs also,” Trump said Friday in an interview on Fox News.

Still, the president insisted that he had already “done a lot” to punish Russia, noting expanded tariffs he placed on India for purchasing Russian energy and argued that “this is a Europe problem, much more than our problem.”

Russia on Friday said negotiations with Ukraine were on “pause” despite Trump’s push following a meeting with Putin last month for direct talks between the Russian leader and Ukrainian President Volodymyr Zelenskiy.

“Communication channels exist, they are established, our negotiators have the opportunity to communicate through these channels, but for now, perhaps, we can talk about a pause,” Kremlin spokesman Dmitry Peskov told reporters Friday, without elaborating.

Read more here.

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:

The tariffs - among the highest set by Trump worldwide - were met with shock and dismay in Switzerland, a leading producer of high-end watches and other luxury goods.

Costing 139 Swiss francs ($175), the watch named \\"WHAT IF...TARIFFS?\\" went on sale on Wednesday and is only available in Switzerland, a company spokesperson said on Friday.

\\"Because as soon as the U.S. changes its tariffs for Switzerland, we will immediately stop selling this watch,\\" the spokesperson said, declining to say how many watches had so far been sold but calling the model \\"a huge success.\\"

Read more here.

Reuters reports:

The United States and Japan reaffirmed their commitment to \\"market determined\\" exchange rates, while agreeing that foreign exchange interventions should be reserved for combating excess volatility, according to a joint statement released on Friday.

The latest agreement also notably made no new demands by the Trump administration on Tokyo around foreign exchange or other matters, a point analysts say will give Japan some relief as it navigates tricky bilateral ties with Washington.

The U.S. Treasury Department and the Japanese Finance Ministry \\"reaffirmed that exchange rates should be market determined and that excess volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability,\\" the statement said.

They chose this timing as the two countries this month published a separate joint statement clarifying details of their tariff deal, Kato said.

The tariff negotiations with the United States have been led by Economy Minister Ryosei Akazawa, while the two countries had agreed that any discussions on currency rates have to be held between Kato and Bessent.

Under the agreement, Washington will reduce tariffs to 15% on most Japanese imports in exchange for Japan's $550 billion U.S.-bound investment package, which includes government-backed loans and guarantees.

Read more here.

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.

Bloomberg News reports:

“Any unilateral tariff increase by Mexico, even within the framework of WTO rules, would be seen as appeasement and compromise toward unilateral bullying,” a spokesperson for the Ministry of Commerce said in a statement on Thursday. “We urge the Mexican side to exercise extreme caution and consider carefully before taking any actions.”

Mexico has come under growing pressure from Donald Trump’s protectionist stance on trade, particularly his push for steep tariffs on Chinese goods. The Latin American country announced plans Thursday to impose duties of as much as 50% on cars and other products made by China and several Asian exporters.

President Claudia Sheinbaum, who’s preparing for talks over North America’s free-trade deal, later insisted she doesn’t seek conflict with China but instead wants to protect domestic industry.

Read more here.

The FT reports:

The US will pressure G7 countries to hit India and China with sharply higher tariffs for buying Russian oil in an attempt to force Moscow into peace talks with Ukraine, according to four people briefed on the plans.

In a video call on Friday, finance ministers from the Group of Seven leading economies will discuss a US proposal for a round of new measures as Donald Trump steps up efforts to broker a peace deal in Ukraine.

The US president this week urged the EU to impose up to 100 per cent tariffs on China and India but is now expanding the push to include G7 allies.

“Chinese and Indian purchases of Russian oil are funding Putin’s war machine and prolonging the senseless killing of the Ukrainian people,” said a US Treasury department spokesperson.

Read more here.

Yahoo Finance's Ben Werschkul reports:

President Trump's tariffs continued to add billions to US coffers as the summer ended with customs duties bringing in about $29.5 billion in August.

The final data for the month — released Thursday afternoon in the latest monthly statement from the US Treasury Department — confirmed another record after a July total of $27.7 billion.

The latest data also represents the first full month of receipts since new \\"reciprocal\\" tariffs went into effect on Aug.7. That move saw Trump levy duties of between 10% and 50% on importers bringing in a variety of goods from around the globe.

Read more here.

From Reuters:

U.S. Commerce Secretary Howard Lutnick said on Thursday he believes the United States will sort out a trade deal with India as soon as that country stops buying Russian oil.

Asked on CNBC what trade issue he was most focused on, Lutnick mentioned India and said: \\"Well, we're going to sort out India,\\" once it stops buying Russian oil.

Lutnick also said \\"we have a big deal coming with Taiwan\\" and he said a trade agreement would probably get done with Switzerland.

Read more here.

Inflation in August picked up again, according to the latest Consumer Price Index (CPI) report, as signs of President Trump's tariffs appeared to be trickling through to consumer prices.

Overall inflation rose 0.4% month over month and 2.9% year over year, driven by higher costs for food, gas, and shelter. Notably, fruit and vegetable prices rose 1.6%, meat prices rose 1%, apparel prices rose 0.5%, new vehicle prices rose 0.3%, and airfares surged 5.9% on a monthly basis.

\\"When I see apparel prices jump by half a percent, you know, those are tariffs,\\" RSM chief economist Joe Brusuelas told Yahoo Finance. \\"When I see food prices jump, given the composition of the North American food supply chain, that's tariffs.\\"

CPI’s categories in both m/m and y/y terms pic.twitter.com/0NTBARMDn1

— Liz Ann Sonders (@LizAnnSonders) September 11, 2025

A new analysis shows that 1 million Americans could be pushed into poverty as a result of President Trump's sweeping tariffs.

CNN reports:

President Donald Trump’s sweeping tariff regime is already reshaping global trade and spiking government customs revenue. But these historic import taxes could also push more Americans into poverty, according to new research.

An analysis published by The Budget Lab at Yale on Tuesday finds Trump’s tariff hikes will likely increase the number of Americans living in poverty by 875,000 in 2026. This increase includes an additional 375,000 children in poverty.

The figures are based on the Official Poverty Measure, a long-standing poverty metric based on pre-tax income.

Read more here.

In a bid to reduce President Trump's tariffs, Switzerland is proposing that its gold industry builds a refinery in the US or increases its processing capacity there as part of a trade deal.

Reuters reports:

President Donald Trump on August 7 slapped 39% tariffs on Swiss goods imports due to the U.S. trade deficit with Switzerland, which scrapped its own industrial tariffs at the start of last year.

That goods trade deficit with Switzerland has been chiefly due to Swiss exports of chemicals and pharmaceutical products, plus gold. Since the tariffs kicked in, the Swiss government and the private sector have been working together to lower them.

Switzerland is a top refiner of gold, and part of the plan is for the gold industry to raise its refining capacity in the U.S. to help even out trade flows, said the people familiar with discussions, speaking on condition of anonymity due to the sensitivity of the matter.

That meant building a refinery or investing in extra capacity in the U.S., the sources said.

Read more here.

Bloomberg News reports:

Chinese drug-related stocks stumbled after a report that the Trump administration has been discussing major restrictions on medicines from the Asian nation.

The Hang Seng Biotech Index dropped as much as 8.6%, the most in five months, before paring much of the loss. A draft executive order aims to impose tough scrutiny on licensing deals for experimental drugs with Chinese firms as part of an effort to boost the domestic US pharmaceutical sector, according to the New York Times report.

Measures to bolster US drugmaking would follow similar efforts by President Donald Trump’s government to increase domestic manufacturing of semiconductors and other crucial products. Meanwhile, China’s biotech industry has been gaining prominence this year as a new hub for drug innovation, driving big gains in share prices.

Read more here.

Mexico has announced that it will raise tariffs on automobiles from China and other Asian countries to 50%, in a broad overhaul of import levies that the government said will help protect jobs. However, some analysts believe that this is simply a move to appease the US.

Reuters reports:

The Economy Ministry said the moves, which will increase tariffs to varying degrees on goods across multiple sectors including textiles, steel and automotive, would impact $52 billion of imports.

\\"They already have tariffs,\\" Economy Minister Marcelo Ebrard told reporters when asked about the import levies on Chinese cars, which are currently 20%. \\"What we will do is raise them to the maximum level allowed.

Read more here.

Bloomberg News reports:

South Korean President Lee Jae Myung said a US immigration raid that led to the detention of more than 300 Korean workers has unsettled companies pouring billions into America.

“They simply needed skilled technicians to install the equipment to build the plant because there aren’t workers available in the US,” Lee said on Thursday, speaking at a press conference in Seoul to mark his 100th day in office. “This could have a significant impact on future direct investment into the US.”

Lee said the workers were dispatched on short-term stays to install equipment and got caught up in the raid amid repeated difficulties obtaining visas. He added that the raid had left him “baffled.” South Korea is now in talks with the US to resolve the visa issues, either by securing more quotas or creating a new visa category, he said.

The detention amplifies strains from a July trade deal that kept a 15% levy on most Korean imports. Trump has yet to sign an order lowering auto tariffs as promised, while the two sides remain divided over Seoul’s $350 billion investment pledge, a central pillar of the accord. The outcome of the standoff may determine whether Korean conglomerates press ahead with their US expansion plans or reconsider the scale of their commitments.

Read more here.

Canadian Prime Minister Mark Carney is planning to announce a series of projects that will aim to improve Canada's infrastructure amid an ongoing trade war.

Bloomberg reports:

Canadian Prime Minister Mark Carney says he’ll announce Thursday the first wave of major projects to be fast-tracked under a new law passed by his government.

The law aims to speed up regulatory reviews for projects deemed to be in the national interest, with the goal of permitting them within two years. Carney wants to expand Canada’s infrastructure, such as ports and rail lines, to allow exporters to reach new trading partners and reduce their reliance on the US.

He previewed the announcement in opening remarks to his Liberal Party caucus, which includes 169 elected lawmakers, at the start of meetings in Edmonton on Wednesday.

Read more here.

Mexico has raised its tariffs on cars coming out of China in a move that is being touted as a way to save jobs.

Reuters reports:

Mexico will raise its tariffs on automobiles from China and other Asian countries to 50%, from a prior level of 20%, Economy Minister Marcelo Ebrard said on Wednesday.

\\"They already have tariffs,\\" Ebrard told reporters when asked about the import levies on China. \\"What we will do is raise them to the maximum level allowed.\\"

\\"Without a certain level of protection, you almost can't compete,\\" he added.

Ebrard said the measure, which comes just within limits imposed by the World Trade Organization, was intended to protect jobs in Mexico as Chinese cars were entering the local market \\"below what we call reference prices.\\"

The light vehicles and auto parts sectors were particularly impacted by lower Chinese prices, he said.

Read more from Reuters.

Synopsys Inc. (SNPS) shares fell 34% on Wednesday after the chip-design software maker warned that US export restrictions are contributing to a slowdown in China, one of the largest markets for semiconductors.

Bloomberg News reports:

As part of the company’s quarterly report on Tuesday, Chief Executive Officer Sassine Ghazi said that a push to develop its own intellectual property isn’t achieving the desired results — partly because of the China challenges. Ghazi said he would be refocusing resources on other areas and is reducing the company’s headcount by about 10%.

“Our results were primarily impacted by underperformance in the IP business as we had the expectation of deals that did not materialize, driven largely by the following three factors: one, new export restrictions disrupted design starts in China, compounding China weakness; two, challenges at a major foundry customer are also having a sizable impact on the year,” Ghazi said on a call with analysts. “And finally, we made certain road map and resource decisions that did not yield their intended results.”

Read more here.

Bloomberg News reports:

President Donald Trump and Indian Prime Minister Narendra Modi pledged to talk and resume trade negotiations, signaling a possible thaw after weeks of a blistering fight over tariffs and Russian oil purchases.

“I am pleased to announce that India, and the United States of America, are continuing negotiations to address the Trade Barriers between our two Nations,” Trump wrote on social media Tuesday. “I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries!,” he added.

Modi responded shortly after with a post on X, saying that he was looking forward to speaking with Trump and that the US and India are “close friends and natural partners.”

“I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership,” Modi said. “Our teams are working to conclude these discussions at the earliest.”

Read more here.

President Trump has urged the EU to impose 100% tariffs on India and China to raise pressure on Russia over the war in Ukraine, the Financial Times reported.

Trump made the appeal in a call with US and EU officials in Washington on Tuesday. A US official said Washington would match any tariffs the EU imposed, adding:

“We’re ready to go, ready to go right now, but we’re only going to do this if our European partners step up with us,” one US official said.

This comes at the same time Trump posted on Truth Social that negotiations with India were \\"continuing\\" and will reach a \\"successful conclusion.\\"

Bloomberg reports:

President Donald Trump told European officials he’s willing to impose sweeping new tariffs on India and China to push President Vladimir Putin to the negotiating table with Ukraine — but only if EU nations do so as well.

Trump made the ask when he called into a meeting with senior US and EU officials in Washington, according to people familiar with the discussion who asked not to be identified discussing private deliberations. The US is willing to mirror tariffs imposed by Europe on either country, one of the people said.

The proposal amounted to a challenge given that several nations, including Hungary, have blocked more stringent EU sanctions targeting Russia’s energy sector in the past. Such measures would require the backing of all member states.

Other potential measures discussed by US and EU officials include further sanctions on Russia’s shadow fleet of oil tankers as well as restrictions on its banks, financial sector and major oil companies, according to the people.

Read more here.

The Supreme Court said Tuesday it would quickly review a high-stakes legal challenge to President Trump's tariffs, setting up a resolution as early as November.

In an order released Tuesday, the high court put the case on track for oral arguments in early November. It sets the stage for a quick, likely final ruling on a key pillar of the president's second-term agenda.

Trump's \\"reciprocal\\" tariffs — the duties at issue in the case — are set to remain in place until the high court makes its decision.