US President Donald Trump's steep tariff hike targeting Chinese goods, which took effect on Thursday, brings Washington's universal rate on China to 145 percent, a White House document confirmed. Trump doubled down by raising new tariffs on Chinese imports to 125 percent, which stacks on top of a 20 percent additional duty from earlier in the year. China has reiterated it does not want to fight trade and tariff wars, but will not back off if the crunch comes. As Raymond Yeung reports, Beijing says the door is open for talks, but they must be held on the basis of mutual respect and equality.

Meanwhile in Hong Kong, Financial Secretary Paul Chan has slammed Washington's "reciprocal tariffs" as fundamentally wrong, politically, economically, and historically.
Chloe Feng has more:

Secretary for Commerce and Economic Development Algernon Yau has called on the business community to unite and counteract what he called "illogical and ungrounded" tariffs imposed by the United States. His comments come as a statutory body insuring SAR companies against non-payment risks is extending its coverage to small and medium-sized enterprises. Frank Yung has that story:

Lawmaker Kennedy Wong, who represents the import and export functional constituency, told Carol Musgrave that the world had entered a period of uncertainty but said Hong Kong trading firms would continue to diversify away from the United States as a way to deal with the fallout from the US tariffs.

The Chinese Manufacturers' Association has urged the SAR administration to roll out support measures to help enterprises stabilise their working capital amid the global trade war. Vanessa Cheng reports:

Experts say Hong Kong companies should reduce their reliance on the United States because of the raft of tariffs it has been imposing. And an industry veteran said US President Donald Trump's decision to further raise the levy on Chinese goods is "very irrational". Janice Lo reports:

In other news, authorities are stepping up efforts to tackle scam syndicates and their use of mule accounts to launder funds. This came after the number of scam cases rose by 12 percent, to almost 45,000 last year. As Damon Pang reports, they involved more than HK$9 billion dollars.

Financial Secretary Paul Chan says the integration of artificial intelligence technology into the fintech industry could help turbocharge financial development across Asia. His remarks came as the government-owned investment body, the Hong Kong Investment Corporation, launched a strategic partnership with locally-based virtual bank, WeLab Bank, to further enrich the city's fintech ecosystem. Chloe Feng reports:

A local think tank says authorities should expand the healthcare voucher scheme so that elderly people can use the subsidy to renovate their homes. The Our Hong Kong Foundation says these include simple modifications such as installing handrails in bathrooms to improve accessibility of their flats. It says this can encourage senior citizens to age in place, and ultimately reduce the city's healthcare expenditure. The think tank's head of healthcare and social innovation, Dicky Chow, spoke to Kimmy Lau:

Consumer prices on the mainland have fallen for the second straight month. Costs at the factory gate also fell last month amid growing trade tensions with the United States, as Janice Lo reports:

China and the European Union have vowed to support the multilateral trading system amid the market turmoil triggered by US tariffs. In a sign of warming ties between the two sides, they also agreed to open immediate negotiations on electric-vehicle pricing. Raymond Yeung reports:

The Palestinian Authority has welcomed the announcement by French President Emmanuel Macron that Paris could recognise a Palestinian state in June. In turn, Macron said some countries in the Middle East could bestow recognition on Israel. Jacqueline Guico reports:

Despite possible recognition of a Palestinian state from France, the violence continues in Gaza. Israeli aircraft struck a residential bloc, killing at least 23 people. Local health authorities say more than 50,000 Palestinians have been killed in Gaza since Israel's military campaign began. The war has also left many thousands suffering devastating injuries that will change their lives for decades to come. Jamie Clarke reports:

A national high-school drama competition in Kenya has been overshadowed by drama of its own. Police have fired tear gas to disperse a crowd that had gathered to watch a controversial play. Tensions flared on Thursday when the student performers stormed out of the venue. The students briefly sang the national anthem before dramatically leaving the hall, which was sealed off by anti-riot police. Jamie Clarke has more:

It's the Grinch that stole Christmas - that's how traders dealing with festive decorations are describing the punishing tariffs imposed on China by US President Donald Trump. Jacqueline Guico explains:

Fans of K-pop are travelling from abroad to Shanghai, where - in a deceiving location - enthusiasts get the chance to live out their idol fantasies. For as little as one hundred yuan, visitors can mimic South Korean variety shows, autograph signing and the experience of being backstage at a concert. Called an "idol experience centre", the venue offers glamorous costumes and props, such as microphone headsets, to immerse guests in idol culture. Jamie Clarke has more:

Fans of Manchester United have been told they will get a chance to meet big names such as Bruno Fernandes when the English Premiership side travels to Hong Kong for a friendly match next month. Tickets go on sale on Friday and start at HK$390 each. Raymond Yeung reports: