Key takeaways:
- China reportedly granting exemptions from 125% tariffs on some U.S. imports, signaling potential trade war de-escalation
- India and Pakistan exchanged fire in Kashmir, escalating tensions after a deadly terror attack
Tensions Rise Between India and Pakistan Indian and Pakistani troops briefly exchanged fire across the Line of Control in disputed Kashmir on Friday. This follows a terror attack earlier in the week that killed 26 tourists in Indian-controlled Kashmir. India blamed Pakistan for supporting the militant group responsible, leading both countries to expel each other's citizens and suspend key agreements. The UN has urged restraint to prevent further escalation between the nuclear-armed neighbors.
U.S.-China Trade Negotiations While Beijing has made no official statement about tariff adjustments, President Trump claimed the two countries are holding informal trade talks. Trump expressed confidence in reaching a "fair deal" soon and indicated final tariffs would be much lower than current rates. The news of potential exemptions comes as Chinese exports decline sharply, suggesting economic pressure may be pushing both sides toward compromise.