Trump latest: US and China slash tariffs in trade war de-escalation; US president heading for pivotal overseas visit

US officials announce deal with China

We reported earlier on the US and China agreeing to slash tariffs on each other (see post at 10.16am).

Talking to reporters in Geneva after meetings with Chinese officials over the weekend, US Treasury secretary Scott Bessent said he believed US and China negotiators would meet again in the coming weeks to discuss a more detailed trade agreement.

And US trade representative Jamieson Greer said the deal meant the US was reducing its 145% tariff and there would be a 90-day pause for negotiations.

Trump to cut drug prices by 59% - as big pharma takes hit

Donald Trump has said he will cut prescription drug prices by 59%.

The US president has not given further details about his plan to lower medicine costs but the statement comes after he promised to use his executive powers to cut the price of drugs in the US yesterday.

He said he would introduce a "most favoured nation" policy which would see the US pay "the same price as the nation that pays the lowest price anywhere in the world".

What has this done to pharmaceutical shares?

Global pharmaceutical stocks took a hit today.

Shares of major US drugmakers AbbVie, Amgen, Pfizer, Eli Lilly and Merck fell between 2.1% and 3.6% in premarket trading.

And in Europe healthcare stocks in AstraZeneca, GSK and Roche Holding were down between 3.3% and 6.8%.

US-China tariff deal is a symbolic and political win

The US-China tariff deal is a "relatively significant achievement", our Asia correspondent Helen-Ann Smith says.

"There was huge amount of scepticism going into this weekend that the two sides could bridge this enormous gulf that existed between them," she says.

"The fact that they have agreed anything is more than just a symbolic win, it's a political win too."

But she notes that whether it's an economic win is a "slightly different question".

"We're still talking about high level tariffs but the big numbers - that 145% baseline tariff - has been reduced and you can't overstate how notable that is," she adds.

Smith also says the move will have "taken the edge off" some of the more catastrophic economic impacts that were starting to play out too.

Last living American hostage in Gaza to be freed by Hamas

Trump has hailed as "great news" Hamas's announcement that it will release hostage Edan Alexander, an Israeli soldier who holds American citizenship, today.

The group said yesterday that the 21-year-old, believed to be the last living American hostage in Gaza, would be released as part of ongoing efforts to achieve a permanent ceasefire with Israel.

"Hamas has been in contact with the US administration over the past few days," the militant group said in a statement.

"The movement has expressed a high degree of positivity, and the release of Israeli soldier Edan Alexander, a dual US citizen, will be part of the steps being taken to achieve a ceasefire, open the crossings, and allow aid and relief to reach our people in the Gaza Strip."

Alexander, who is from New Jersey, was 19 when he was taken from his base on the border with Gaza in southern Israel during the Hamas attacks on 7 October 2023.

His expected release comes as Donald Trump prepares to travel to the Middle East in a four-day trip.

Here is what the US leader has said in the past few minutes on Alexander's release...

What can we expect from Trump's Middle East visit?

In just a few hours, Donald Trump will board Air Force One and depart for this tour of the Middle East.

The US leader wants to focus on big deals and investments but the region is not what it was eight years ago when Trump last visited.

There is a lot of focus in the region on the war in Gaza and with that comes a lot of anger.

Here, our lead world news presenter Yalda Hakim, who is in Riyadh, takes a look at what we can expect from Trump's visit...

Trump defends Qatar giving him Air Force One replacement gift

Ahead of his journey to the Middle East, Donald Trump has said he is ready to accept a luxury Boeing 747-8 jumbo jet as a gift from the ruling family of Qatar during his trip to the region.

Trump has defended the idea as a fiscally shrewd move for the country, with American officials saying it could be converted into a potential presidential aircraft.

The Qatari government said a final decision had not been made.

Analysis: Trump set for truly consequential week for his presidency and his ability to effect change

It has been an extraordinary few hours which may well set the tone for a hugely consequential week ahead.

In the time that it took me to fly from London to Saudi Arabia, where Donald Trump will begin a pivotal Middle East tour this week, a flurry of news has emerged on a range of key global challenges.

All of these developments represent dramatic shifts in three separate challenges and hint at the remarkable influence the US president is having globally.

This sets the ground for what could be a truly consequential week for Trump's presidency and his ability to effect change.

US and China slash tariffs on each other in trade war de-escalation

The US and China have agreed to slash tariffs on each other as they seek to end their trade war.

Speaking after talks with Chinese officials in Geneva, US treasury secretary Scott Bessent told reporters the two sides had reached a deal for a 90-day pause on measures.

US trade representative Jamieson Greer said so-called reciprocal tariffs were now at 10% each.

The deal means the US is reducing its 145% tariff to 30% on Chinese goods, as a tariff of around 20% had been in effect from previous administrations.

China has agreed to reduce its 125% retaliatory tariffs to 10% on US goods.

"Both countries represented their national interest very well,"

Bessent said today.

 "We both have an interest in balanced trade, the U.S. will continue moving towards that."

The Geneva meetings were the first face-to-face interactions between senior US and Chinese economic officials since Trump returned to power and launched a global tariff war, imposing particularly hefty duties on China.

-SKY NEWS