The meetings in Rome come amid strains between the United States and several European allies following criticism by Donald Trump over Europe’s reluctance to support the U.S. military campaign against Iran and disagreements over tariffs and defense commitments.

Rubio was also scheduled to hold talks with Antonio Tajani as part of a broader diplomatic effort to ease trans-Atlantic friction.

Italy has publicly opposed the war with Iran, with Meloni describing the conflict as “illegal” and criticizing Trump’s remarks directed at Pope Leo XIV. Trump in turn accused Meloni of failing to support Washington adequately during the conflict.

The dispute has complicated what had previously been viewed as one of Trump’s strongest relationships with a European leader.

Washington has also increased pressure on European allies over military burden-sharing and support for operations in the Middle East. The United States recently announced plans to withdraw 5,000 troops from Germany, while Trump has threatened additional reductions of American military deployments in Italy and Spain.

Italy hosts several strategically important U.S. and NATO facilities supporting operations across the Mediterranean, Middle East and North Africa. Italian officials have expressed concern that troop reductions could weaken NATO’s southern flank.

Defense cooperation between Rome and Washington came under strain in March when Italy declined to authorize the use of the Sigonella air base in Sicily for U.S. bombing missions linked to the Iran conflict without parliamentary approval.

Under Italy’s constitution and existing treaty arrangements, military bases used within a NATO framework generally require additional authorization for offensive combat operations.

Meloni and Tajani have repeatedly stated that Italy will not participate directly in the Iran war and have insisted any request involving offensive use of Italian bases must receive parliamentary consent, where opposition to the conflict remains strong.

The war has also raised economic concerns for Italy, which depends heavily on energy imports and exports. Meloni has warned that instability in the Strait of Hormuz risks increasing energy prices and harming household purchasing power, while uncertainty surrounding possible U.S. tariffs has unsettled Italy’s export-oriented industries.

Rubio’s visit began on Thursday with meetings at the Vatican, including talks with Pope Leo XIV and Cardinal Pietro Parolin.According to the U.S. Department of State⁠, discussions focused on efforts to secure a lasting peace in the Middle East and reaffirmed the longstanding relationship between Washington and the Holy See.

U.S. Treasury Secretary Scott Bessent said he spoke by video call with Chinese Vice Premier He Lifeng and U.S. Trade Representative Jamieson Greer to discuss preparations for Trump’s planned May 14–15 visit to China, which would mark a major diplomatic engagement between the world’s two largest economies.

“Our meeting was both candid and comprehensive, and I stressed that China’s recent provocative extraterritorial regulations have a chilling effect on global supply chains,” Bessent said in a post on X.

His remarks marked one of the Trump administration’s clearest public criticisms of Beijing’s newly introduced supply chain regulations, which U.S. businesses and analysts say could make it harder for foreign firms to diversify sourcing of critical minerals and industrial goods away from China.

The rules, introduced in recent weeks, create a legal framework that could penalize foreign companies shifting supply chains out of China, particularly in sectors involving rare earths and strategic manufacturing inputs.Analysts have described the move as a significant escalation that could complicate Washington’s broader effort to reduce dependence on Chinese-controlled supply chains.

Bessent did not outline a direct U.S. response to the measures but said he looked forward to “a productive summit” between Trump and Xi.Chinese state broadcaster CCTV said He Lifeng had “candid, in-depth and constructive exchanges” with Bessent and Greer and that Beijing had raised “serious concerns” over recent U.S. trade-restrictive measures targeting China.

According to CCTV, both sides agreed to enhance consensus, manage differences and strengthen cooperation, signaling that preparations for the summit remain on track despite persistent tensions.The officials last met in person in Paris in March, where they discussed possible Chinese purchases of U.S. agricultural goods and the creation of new joint mechanisms to manage trade and investment disputes.

Chinese officials also used those talks to object to new tariff investigations launched by Trump’s administration after the U.S. Supreme Court struck down his earlier global tariff framework in February.Trump had delayed his Beijing trip because of the U.S.-Israeli war involving Iran, but officials on both sides now appear focused on preserving stability ahead of the summit.

In a separate diplomatic exchange on Thursday, Chinese Foreign Minister Wang Yi told U.S. Secretary of State Marco Rubio that Taiwan remained the “biggest point of risk” in bilateral ties, underscoring broader geopolitical tensions beyond trade.

The two countries reached a fragile trade truce last October during talks in Busan, South Korea, after months of retaliatory tariffs triggered by Trump’s “Liberation Day” duties and China’s restrictions on exports of rare earths and other critical minerals.

As the summit approaches, U.S. lawmakers and industry groups are also pressing the administration not to grant China greater access to the American automotive sector.Ten U.S. steel industry groups wrote to Bessent, Greer, Rubio and Commerce Secretary Howard Lutnick on Thursday, warning against allowing Chinese investment into the U.S. auto market.

The groups said such access could weaken domestic manufacturing competitiveness and create national security risks linked to data collection and strategic industrial dependence.At the same time, both governments have continued to build leverage ahead of the leaders’ meeting, with China advancing its new supply chain rules and Washington tightening restrictions on tool shipments to one of China’s major semiconductor manufacturers.

Chinese state media said both sides had expressed willingness to promote the “healthy, stable and sustainable development” of bilateral economic and trade relations.

The German premium carmaker posted earnings before interest and tax (EBIT) of 1.9 billion euros ($2.22 billion) for the first quarter, down 17% from a year earlier but ahead of the average analyst forecast of 1.6 billion euros, according to a Visible Alpha poll.

Revenue for the quarter came in at 31.6 billion euros, slightly below analyst estimates of 31.8 billion euros, reflecting continued pressure on sales volumes in key overseas markets, particularly China, where luxury automakers have faced softer consumer demand and intensifying domestic competition.

Mercedes’ adjusted return on sales for its core passenger car division was 4.1%, compared with 7.3% in the same quarter last year, but remained within the company’s full-year target range of 3% to 5%.German automakers including Mercedes have been contending with a difficult external environment marked by high tariffs, sluggish Chinese demand and a challenging shift toward electric mobility, forcing manufacturers to cut costs while defending profitability.

Chief Executive Ola Kaellenius has responded with broad restructuring measures, including redundancies and tighter cost controls, while accelerating the rollout of new vehicle models aimed at reviving growth and protecting the brand’s premium position in China.Chief Financial Officer Harald Wilhelm said the company remained “on track” to meet its guidance for 2026 group EBIT to come in “significantly above” last year’s 5.8 billion euros.

“Strong demand for our new products and healthy order books position us well for improved momentum in the second half of the year,” Wilhelm said.Mercedes is planning to launch 40 new models between 2025 and 2027, including the all-electric CLA sedan in its entry-level segment and an upgraded S-Class lineup aimed at reinforcing its position in the high-end luxury market.

The company said it would continue strict cost discipline as it works toward a medium-term target of restoring double-digit profitability, with a longer-term margin goal of 8% to 10%.

Trump said the United States could “put a big tariff on the UK” if London maintains the tax, which was introduced in 2020 and applies a 2% levy on revenues generated by large digital companies operating in Britain.

The measure affects major U.S.-based firms including Apple, Alphabet’s Google and Meta.“I don’t like it when they target American companies, because basically, you’re talking about our great American companies,” Trump told The Telegraph, adding that Washington could respond swiftly through trade measures.

“If they don’t drop the tax, we’ll probably put a big tariff on the UK.”The digital services tax has been a longstanding point of friction between Washington and London, drawing criticism not only from Trump but also from his predecessor, Democrat Joe Biden, who similarly argued that such levies disproportionately impact U.S. technology giants.

The dispute underscores broader transatlantic disagreements over how to tax multinational digital corporations, particularly those with significant cross-border revenues but limited physical presence in foreign markets.

Britain has defended the tax as a temporary measure aimed at ensuring fair contributions from large tech firms operating within its jurisdiction.

Trump’s remarks come ahead of a scheduled visit by Britain’s King Charles to the United States next week, adding a diplomatic dimension to the trade tensions at a time when both countries have sought to maintain close economic ties.

The remarks originated from U.S. conservative radio host Michael Savage during an episode of his show “The Savage Nation,” in which he criticized birthright citizenship in the United States and referred to countries including India and China in derogatory terms.

Trump reposted a transcript of the comments on his Truth Social platform on Thursday without adding his own remarks.

India’s foreign ministry responded strongly, with spokesperson Randhir Jaiswal saying the remarks were “obviously uninformed, inappropriate and in poor taste,” and did not reflect the longstanding relationship between the two countries.

“The remarks certainly do not reflect the reality of the India-U.S. relationship, which has long been based on mutual respect and shared interests,” Jaiswal said in a statement.

The U.S. embassy in New Delhi cited Trump as having previously described India as “a great country,” seeking to underscore the broader context of ties between the two nations.The comments come amid ongoing debate in the United States over birthright citizenship, with Trump pursuing restrictions that are currently under legal challenge in the Supreme Court.

Earlier this month, he attended a hearing on the issue in a rare presidential visit to the court.India’s main opposition Indian National Congress condemned the remarks as “extremely insulting,” urging Prime Minister Narendra Modi to formally raise the issue with Washington.

Government data show approximately 5.5 million people of Indian origin reside in the United States, forming one of the largest Asian-origin communities alongside Chinese Americans.Despite the diplomatic friction, both countries have been engaged in efforts to strengthen economic ties.

Following a period of trade tensions, including the imposition of high U.S. tariffs on Indian goods last year, New Delhi and Washington are currently working toward a trade agreement aimed at boosting bilateral commerce and avoiding further tariff escalations.

Speaking at Tsinghua University, Sanchez said trade flows between China and the EU were “imbalanced” and called on Chinese authorities to open their markets to address a widening deficit. “We need China to open up so that Europe does not have to close itself off,” he said, adding that the deficit grew by 18 percent last year and posed risks over the medium to long term.

Sanchez’s visit, his fourth to China in four years, comes as Madrid seeks to position itself as a bridge between Beijing and the 27-member EU amid signs of strain in transatlantic relations. Recent tariff measures and policy shifts under Donald Trump have prompted several Western governments to pursue closer economic engagement with China.

Spain recorded a trade deficit of 42.3 billion euros ($49.1 billion) with China last year, with Sanchez noting that the shortfall accounts for 74 percent of the country’s overall trade deficit. Spain’s population of roughly 50 million contrasts with China’s more than 1.4 billion, underscoring the structural imbalance in bilateral trade.

The Spanish government is seeking improved access for agricultural and industrial exports and exploring opportunities for joint ventures in the technology sector. Officials also aim to attract Chinese investment into Spain and secure access to critical raw materials.

During the visit, Sanchez is scheduled to tour facilities linked to Xiaomi and the Chinese Academy of Sciences, before holding talks with senior Chinese leaders including President Xi Jinping and Premier Li Qiang.

The trip follows a period of diplomatic friction with Washington after Trump threatened to reduce trade ties with Spain, citing Madrid’s refusal to allow use of its military bases for U.S. strikes against Iran, a key Chinese economic partner.

Spain’s exports to China rose 6.8 percent in 2025, according to government data, reflecting strengthened bilateral engagement. During Sanchez’s previous visit in April 2025, Beijing agreed to expand market access for Spanish products including pork and cherries.

Chinese foreign ministry spokeswoman Mao Ning described Spain as “an important partner of China within the EU,” signaling Beijing’s willingness to deepen bilateral cooperation.

Sanchez’s trip highlights Spain’s effort to chart an independent foreign policy within Europe, positioning China as a strategic partner rather than a geopolitical rival, in contrast with Washington’s stance.

Trump has previously criticized Madrid over its refusal to grant landing rights for U.S. forces during the Iran conflict and for what he described as insufficient defence spending among NATO allies.

The Spanish leader’s approach has drawn mixed reactions domestically, with supporters backing his economic engagement strategy while businesses and opposition figures warn that deteriorating relations with the United States could carry economic risks.

A government source said Sanchez’s meeting with Xi Jinping on Tuesday would focus on geopolitical issues, reflecting Madrid’s view of China as a stabilizing global actor. However, trade representatives cautioned that such positioning could exacerbate existing strains, particularly as U.S. tariffs on European Union imports continue to weigh on Spanish exports.

“The United States is the leading foreign investor in Spain,” said Ramon Gascon Alonso of Spain’s Exporters’ and Investors’ Club, pointing to the importance of bilateral trade in key sectors of the economy.

Opposition figures have also criticized Sanchez’s stance, warning that public disagreements with Washington could undermine NATO cohesion and jeopardize the U.S. military presence in Spain.

China’s ambassador to Spain, Yao Jing, said stable bilateral relations had contributed to increased Chinese investment, describing Spain as pragmatic in its approach to economic cooperation and market access.

Official data showed Chinese firms invested 643 million euros in Spain in 2025, up from 149 million a year earlier, bringing total investment between 2010 and 2025 to 9.7 billion euros, largely concentrated in extractive industries and the energy sector.

During the three-day visit, Sanchez is scheduled to attend a formal banquet hosted by Xi, meet Premier Li Qiang and senior legislator Zhao Leji, and engage with business and academic leaders, including a visit to Xiaomi and a speech at Tsinghua University.

Spain is seeking to narrow a trade deficit with China that has more than doubled over four years to nearly $50 billion in 2025, with efforts focused on boosting agricultural and manufacturing exports.

Officials are also aiming to finalize a regionalization agreement to protect poultry exports affected by bird flu, following a similar arrangement that supported the pork industry during a previous African swine fever outbreak.

A three-judge panel at the US Court of International Trade will consider lawsuits filed by 24 mostly Democratic-led states and two small businesses seeking to block the tariffs, which took effect on February 24.

The plaintiffs contend the policy sidesteps a decision by the US Supreme Court that struck down a broad set of earlier tariffs imposed under the International Emergency Economic Powers Act.

The Trump administration has defended the tariffs as a lawful response to persistent trade imbalances, arguing that the United States’ long-standing deficit importing more goods than it exports justifies emergency measures.

The tariffs were enacted under Section 122 of the Trade Act of 1974, which permits duties of up to 15% for a limited period in cases of significant balance-of-payments deficits or to prevent a sharp depreciation of the U.S. dollar.

Plaintiffs argue that the provision is intended for short-term monetary crises and does not apply to routine trade deficits, which they say do not meet the statutory threshold.The legal dispute marks a further test of executive authority over trade policy, an area traditionally involving congressional oversight.

Trump has made tariffs a central element of his economic and foreign policy agenda in his second term, asserting broad unilateral powers to impose import duties.

The case follows a February 20 ruling by the Supreme Court that invalidated many of Trump’s earlier tariffs under the International Emergency Economic Powers Act, finding that the statute did not grant the authority he had claimed.

The current lawsuits do not challenge other tariffs imposed under more conventional legal frameworks, including duties on steel, aluminum and copper imports.

In a joint statement, the groups warned that persistent institutional paralysis, rising protectionism and unresolved disputes risk undermining the WTO’s core functions, including its ability to negotiate new rules and enforce existing ones.

They said urgent action was needed to restore credibility and ensure the organization remains responsive to modern trade realities.

Officials highlighted the continued dysfunction of the WTO’s dispute settlement mechanism, particularly the paralysis of its appellate process, which has limited the body’s capacity to deliver binding resolutions in trade conflicts.

They called for a fully operational and accessible system to uphold rules-based trade.

The statement stressed the need to update WTO frameworks to address emerging areas such as digital commerce, industrial subsidies and supply chain resilience.

The EU and CPTPP members said current rules do not adequately reflect evolving global trade patterns or technological change.

The groups reaffirmed their commitment to a rules-based international trading system, warning that fragmentation into competing trade blocs could weaken global economic stability.

They urged broader membership engagement to advance consensus-driven reforms.

The WTO, established in 1995 to oversee global trade rules, has faced increasing pressure in recent years amid geopolitical tensions and shifting economic priorities among major economies.

Speaking at the annual China Development Forum in Beijing, Li said China would expand imports of high-quality foreign goods and work with trading partners to promote more balanced global trade, according to state media.

Li’s remarks come as China faces mounting concerns from major economies, particularly the United States and the European Union, over its trade practices, industrial overcapacity and reliance on Chinese exports.

While he did not directly reference the record surplus, his comments indicated an effort to address imbalances that have strained international economic relations.The forum, which brings together foreign business leaders, policymakers and economists, is a key platform for Beijing to outline its economic priorities and signal openness to global investors.

In a separate address, central bank governor Pan Gongsheng said assessments of global imbalances should account for both goods and services trade, as well as financial flows. He noted that while China runs the world’s largest goods surplus, it also posts the largest services deficit.

Pan added that China does not intend to gain a competitive trade advantage through currency depreciation, responding to longstanding concerns from trading partners over exchange rate policies.

Beijing is also attempting to reverse a decline in foreign direct investment, which fell 5.7% year-on-year to just over 92 billion yuan ($13.36 billion) in January, following a 9.5% drop in 2025.

In December, authorities expanded incentives for foreign investors by adding 200 sectors eligible for benefits such as tax breaks and preferential land use, focusing on areas including advanced manufacturing and modern services.

Efforts to stabilise trade ties come as geopolitical tensions persist. U.S. President Donald Trump recently postponed a planned visit to Beijing to meet President Xi Jinping due to the Iran conflict, delaying talks aimed at easing economic tensions between the two countries.