add_action('wp_footer', function () { echo ''; }, 99); Tariffs Arsip - todayinasian.com https://todayinasian.com/tag/tariffs/ Sat, 15 Aug 2026 15:40:20 +0000 en-GB hourly 1 https://wordpress.org/?v=7.1 Copper Prices Face New Pressure From Trump Tariff Plans https://todayinasian.com/business/copper-prices-face-new-pressure-from-trump-tariff-plans/ https://todayinasian.com/business/copper-prices-face-new-pressure-from-trump-tariff-plans/#respond Sat, 15 Aug 2026 15:40:20 +0000 https://todayinasian.com/?p=2619 BUSINESS – Copper is finding itself at the center of another trade-policy storm as President Donald Trump’s tariff strategy reshapes the global metals market. According to CNBC, investors and commodity traders are watching closely as U.S. trade measures create a widening gap between American copper prices and international benchmarks, potentially changing where supplies flow and […]

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BUSINESS – Copper is finding itself at the center of another trade-policy storm as President Donald Trump’s tariff strategy reshapes the global metals market. According to CNBC, investors and commodity traders are watching closely as U.S. trade measures create a widening gap between American copper prices and international benchmarks, potentially changing where supplies flow and how much manufacturers ultimately pay.

Copper is particularly sensitive to trade disruptions because it is essential to construction, power infrastructure, electronics, electric vehicles and data centers. The United States relies heavily on imported metal to meet domestic demand, making the market especially vulnerable to tariffs designed to encourage greater production at home.

The tariff threat has already created unusual incentives for traders. Copper has been pulled toward the United States as buyers seek to secure supplies ahead of potential duties, increasing inventories in American warehouses while reducing availability elsewhere. Reuters has previously reported that this growing price difference between the U.S. COMEX market and the London Metal Exchange has encouraged physical shipments into the United States.

That dynamic could eventually produce a strange outcome. While tariffs are intended to strengthen domestic supply, they can temporarily make the U.S. market more attractive to international sellers. Meanwhile, consumers and manufacturers could face higher costs for a metal that is difficult to replace across many industrial applications.

Read More: U.S. Jobs Drop 23,000 in July as Hiring Suddenly Slows Down

The issue extends beyond copper prices. Trump’s broader tariff campaign has introduced fresh uncertainty across commodity markets, with businesses attempting to anticipate which materials could face additional trade barriers. Producers in major copper-exporting countries have also warned that restrictions could disrupt established supply chains rather than immediately create new American production.

The challenge is particularly significant because building mines, smelters and refining capacity takes years and requires enormous investment. A tariff can change the economics of imports almost overnight, but domestic infrastructure cannot appear with the same speed.

CNBC’s report highlights how the policy debate is therefore becoming a complicated balancing act. Washington wants to reduce dependence on foreign supplies and strengthen strategic industries, while manufacturers need reliable and affordable access to raw materials.

For traders, the question is increasingly about what happens after the initial rush of copper into the U.S. If American inventories become unusually large while global supplies tighten, the tariff strategy could leave the international market dealing with a very different copper landscape than the one policymakers originally intended.

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Trump Targets 60 Trade Partners as US Tariffs Expire https://todayinasian.com/business/trump-targets-60-trade-partners-as-us-tariffs-expire/ https://todayinasian.com/business/trump-targets-60-trade-partners-as-us-tariffs-expire/#respond Fri, 24 Jul 2026 15:02:18 +0000 https://todayinasian.com/?p=2553 BUSINESS – The United States is moving to impose new trade measures on around 60 trading partners as a temporary 10% tariff regime reaches its expiration date, creating fresh uncertainty for businesses and governments navigating President Donald Trump’s aggressive trade agenda. According to Reuters, the latest action includes tariffs targeting goods linked to forced labor, […]

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BUSINESS – The United States is moving to impose new trade measures on around 60 trading partners as a temporary 10% tariff regime reaches its expiration date, creating fresh uncertainty for businesses and governments navigating President Donald Trump’s aggressive trade agenda. According to Reuters, the latest action includes tariffs targeting goods linked to forced labor, adding another layer of pressure to a global trading system already facing significant disruption from Washington’s broader tariff policies.

The new measures come as the United States prepares to replace temporary tariff arrangements with more permanent trade policies. The 10% duties had been introduced as part of Trump’s efforts to reduce America’s trade deficit and encourage foreign governments to negotiate new agreements with Washington. However, the approaching deadline has left many countries racing to secure exemptions or more favorable terms before higher tariffs take effect.

According to Reuters, the administration’s decision to target products associated with forced labor reflects Trump’s broader push to reshape supply chains and encourage companies to move production away from regions considered problematic by U.S. officials. The policy could affect a wide range of industries, from manufacturing and textiles to electronics and consumer goods, depending on how the rules are implemented.

Read More: Netflix Shares Slide After Weak 2026 Earnings Forecast

Trump’s trade strategy has already created significant tensions with major economic partners. Businesses have warned that higher import duties could increase production costs and eventually raise prices for American consumers. Supporters of the policy, however, argue that tariffs can protect domestic industries, reduce dependence on foreign suppliers, and encourage companies to invest in U.S. manufacturing.

The latest announcement also arrives as Washington continues negotiations with multiple countries seeking to avoid steeper tariffs. Governments and exporters are closely watching the administration’s decisions, as new duties could alter the competitiveness of their products in the world’s largest consumer market.

The Reuters report highlighted the broader uncertainty surrounding the U.S. tariff regime, with companies facing difficulty planning investments and supply chains while trade policies remain subject to rapid changes. The expiration of the temporary 10% tariff framework could therefore become a critical turning point for global commerce.

As the deadline approaches, businesses and governments are preparing for potentially higher costs and shifting trade routes. The evolving policy demonstrates how tariffs have become a central instrument of U.S. economic diplomacy, with consequences extending far beyond customs borders and into global supply chains, corporate strategy, consumer prices, and international relations.

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US–Taiwan Trade Pact Cuts Tariffs to 15%, Boosts Market Access https://todayinasian.com/business/us-taiwan-trade-pact-cuts-tariffs-to-15-boosts-market-access/ https://todayinasian.com/business/us-taiwan-trade-pact-cuts-tariffs-to-15-boosts-market-access/#respond Fri, 13 Feb 2026 06:50:09 +0000 https://todayinasian.com/?p=2002 BUSINESS – The United States and Taiwan have officially signed a landmark reciprocal trade agreement that recalibrates decades-old tariff policies and strengthens economic ties between the two partners, as confirmed by multiple news reports including Reuters and national sources. Under the pact, Washington will cap tariffs on Taiwanese imports at 15 per cent, down from […]

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BUSINESS – The United States and Taiwan have officially signed a landmark reciprocal trade agreement that recalibrates decades-old tariff policies and strengthens economic ties between the two partners, as confirmed by multiple news reports including Reuters and national sources. Under the pact, Washington will cap tariffs on Taiwanese imports at 15 per cent, down from the roughly 20 per cent reciprocal rate set under previous U.S. tariff regimes, aligning Taiwan’s access on par with other key partners like Japan and South Korea and signalling deeper commercial cooperation amid intensifying global competition.

The agreement, finalized in Washington, D.C. on 12 February 2026, sets out more than just tariff cuts — it also commits Taiwan to progressively reduce or eliminate tariffs on almost all U.S. goods, opening doors for American exports in sectors including automobiles, industrial machinery, agricultural products, and chemicals. Taipei has agreed to import tens of billions of dollars’ worth of U.S. energy resources, aircraft, and power equipment between 2025 and 2029, with figures such as US$44.4 billion in liquefied natural gas and crude oil and US$15.2 billion in civil aircraft and engines on the schedule, according to the U.S. Trade Representative’s office.

Read More: Singapore Draws S$14.2B Investments, 15,700 Jobs Projected

Taipei will also exempt more than 2,000 Taiwanese products from reciprocal tariffs, many of which — like tea, orchids, tapioca starch, and fruit juices — are subject only to standard Most-Favoured-Nation (MFN) rates once imported into the U.S., boosting competitive access for Taiwanese exporters.

Beyond tariffs, the pact reinforces cooperation on high-technology supply chains and aims to enhance industrial resilience by deepening strategic integration across sectors such as semiconductors, artificial intelligence, and advanced electronics. Taiwan’s negotiating team, led by Vice Premier Cheng Li-chiun, described the agreement as a “milestone” that secures preferential tariff treatment while protecting key domestic industries and maintaining Taiwan’s competitiveness alongside major economies like the European Union.

Officials said that the deal builds on a previous January framework, where Taiwanese tech and chip firms pledged large-scale investments — including at least US$250 billion in U.S. semiconductor production capacity, backed by credit guarantees — in exchange for lower import duties, a move aimed at reshoring high-value manufacturing and supply chains.

Read More: Nvidia Halts New Gaming GPUs as It Doubles Down on AI

U.S. Trade Representative Jamieson Greer called the agreement “a boost for export opportunities for U.S. farmers, ranchers, fishermen, workers, and manufacturers,” and highlighted how it strengthens bilateral trade relations while enhancing global supply chain resilience.

While the pact still requires legislative approval in Taiwan, its implementation marks a major turning point in Taiwan-U.S. economic ties, underscoring shared interests in trade liberalization, technology collaboration and market integration in an era of geopolitical economic competition.

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Stocks, Dollar Slide After Trump Warns of 100% China Tariffs https://todayinasian.com/business/stocks-dollar-slide-after-trump-warns-of-100-china-tariffs/ https://todayinasian.com/business/stocks-dollar-slide-after-trump-warns-of-100-china-tariffs/#respond Sat, 11 Oct 2025 09:38:08 +0000 https://todayinasian.com/?p=1557 BUSINESS – Global markets tumbled on Friday after U.S. President Donald Trump announced plans to escalate tariffs on Chinese goods to 100 percent, triggering fears of renewed trade escalation and sparking a wave of investor repositioning. The stock selloff was sharp: the S&P 500 and Nasdaq Composite suffered their heftiest single-day percentage declines since April. […]

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BUSINESS – Global markets tumbled on Friday after U.S. President Donald Trump announced plans to escalate tariffs on Chinese goods to 100 percent, triggering fears of renewed trade escalation and sparking a wave of investor repositioning. The stock selloff was sharp: the S&P 500 and Nasdaq Composite suffered their heftiest single-day percentage declines since April. Meanwhile, U.S. Treasury yields fell and the U.S. dollar weakened.

Trump’s move was framed as retaliation against China’s proposed export controls on rare earth minerals, which are crucial for technology and semiconductor industries. In his announcement, Trump also signalled intentions to impose stricter export rules on “critical software” as part of the broader trade confrontation.

Technology stocks led the decline, as investors grew wary of the potential fallout from a deepening U.S.–China standoff. The S&P 500 tech index dropped about 4 percent, while semiconductors as a sector plunged nearly 6.3 percent. Chinese listings on U.S. exchanges were also caught in the rout: Alibaba fell 8.4 percent and JD.com declined 6.2 percent.

On the bond front, investors sought safety. The benchmark 10-year Treasury yield slid to its lowest point in over a month, as demand for U.S. government securities increased amidst the risk aversion.

Read More: Asian Currencies Slide in Early October, Rupiah Among Weakest

In currency markets, the dollar lost ground. Its index fell about 0.4 percent following the tariff pronouncement. Meanwhile, the euro and yen gained modestly as traders rebalanced toward non-U.S. assets.

Commodities also reacted: oil prices dropped over US$2 per barrel, reflecting concerns about global demand in light of trade tension. Conversely, gold rallied, rising past the US$4,000 per ounce mark, driven by its status as a safe-haven asset.

Across regions, global equity indices also felt the pressure. The MSCI global index dipped about 2.11 percent, while European shares fell over 1 percent. The STOXX 600 erased earlier weekly gains in the final session.

Analysts noted that Trump’s surprise tariff escalation came at a delicate moment: markets were already balancing optimism about AI-driven growth and expectations for future U.S. interest rate cuts. The sudden shift injected uncertainty into risk assets and tested whether investors’ confidence can withstand geopolitical shocks.

In effect, the market move reinforced the idea that beyond fundamentals, trade policy and political developments remain potent drivers of volatility in global financial markets.

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Trump to Impose 25% Tariff on Heavy Trucks in October https://todayinasian.com/business/trump-to-impose-25-tariff-on-heavy-trucks-in-october/ https://todayinasian.com/business/trump-to-impose-25-tariff-on-heavy-trucks-in-october/#respond Sat, 27 Sep 2025 04:11:26 +0000 https://todayinasian.com/?p=1506 BUSINESS – President Donald Trump announced that, starting October 1, the United States will impose a 25 percent tariff on imported heavy-duty trucks. This move is part of a broader package of sweeping duties aimed at protecting U.S. industry and addressing national security concerns. Alongside the truck tariff, Trump revealed plans for equally aggressive levies […]

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BUSINESS – President Donald Trump announced that, starting October 1, the United States will impose a 25 percent tariff on imported heavy-duty trucks. This move is part of a broader package of sweeping duties aimed at protecting U.S. industry and addressing national security concerns.

Alongside the truck tariff, Trump revealed plans for equally aggressive levies on other imports: 100 percent tariffs on branded pharmaceutical products, 50 percent duties on kitchen cabinets and bathroom vanities, and 30 percent tariffs on upholstered furniture. The president stated that the drug tariffs would be waived for companies actively building manufacturing plants in the U.S.

The new duties mark a renewed escalation in the U.S. trade agenda. Trump described the tariffs as measures to counter “unfair outside competition” and to protect American manufacturers like Peterbilt, Kenworth, Freightliner, and Mack Trucks. The president further justified the truck tariff under the banner of national security, arguing that reliable domestic truck makers are critical to infrastructure and supply chains.

The pharmaceutical tariff, set at a full 100 percent, raised particular concern among health industry stakeholders and trade partners. According to Reuters, all new duties will take effect on October 1.

Read More: Alphabet Hits $3 Trillion Valuation, Joins Elite Tech Firms

Markets reacted immediately to the announcements. Shares of companies exposed to these sectors, especially in heavy trucking and pharmaceuticals, experienced volatility. In particular, Daimler Truck and Traton shares fell following the tariff news.

Legal and trade experts note that many of Trump’s recent tariff policies are vulnerable. Some are being challenged in the courts, and the Supreme Court is expected to review the legality of sweeping global tariffs later this year.

Observers also point out that existing trade agreements with partners like the European Union, Japan, and the United Kingdom may impose ceilings on tariff rates for certain goods such as pharmaceuticals. Thus, the new national security tariffs might not supersede agreed limits in those deals.

Analysts warn that while the tariff strategy is intended to bolster U.S. manufacturing, it could also drive inflation and increase costs for consumers, especially in sectors dependent on imports. The new levies come at a time of already elevated global uncertainty and inflationary pressures.

Trump’s latest tariff announcement underscores how import duties continue to be a central instrument in his economic and trade policy toolbox, blending industrial strategy with political leverage.

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EU Producers Seek 30% Export Duty on Aluminium Scrap https://todayinasian.com/business/eu-producers-seek-30-export-duty-on-aluminium-scrap/ https://todayinasian.com/business/eu-producers-seek-30-export-duty-on-aluminium-scrap/#respond Fri, 12 Sep 2025 16:24:21 +0000 https://todayinasian.com/?p=1447 BUSINESS – European aluminium makers are calling for the European Commission to introduce a duty of roughly 30% on aluminium scrap exports. They argue that the current volume of exports is undermining domestic supply for recycling and threatening both the competitiveness of EU producers and the bloc’s decarbonisation goals. Scrap exports from the EU surged […]

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BUSINESS – European aluminium makers are calling for the European Commission to introduce a duty of roughly 30% on aluminium scrap exports. They argue that the current volume of exports is undermining domestic supply for recycling and threatening both the competitiveness of EU producers and the bloc’s decarbonisation goals.

Scrap exports from the EU surged to 1.26 million metric tons in 2024, about 50% more than five years earlier, with the majority of that going to countries in Asia. Producers attribute part of the issue to U.S. trade policies: while U.S. imposed 50% tariffs on imported aluminium products, scrap was exempted under 15% tariffs, making it more attractive for U.S. consumers—thus pulling demand away from the EU market. This divergence is said to exacerbate scrap outflows from EU territory.

Industry leaders contend that buyers in Asia can outbid EU recyclers in part because of subsidised energy, lower labour costs, and laxer environmental regulation—all of which allow Asian smelters to offer more for scrap than EU-based recycling companies can afford to match. Paul Voss, Director-General of European Aluminium, pointed out that while traders will “naturally sell to the highest bidder,” it falls to public policy to correct these kinds of market imbalances in order to “protect Europe’s strategic interests.”

Read More: Dollar Weakens, Yen Rises as Rupiah Stumbles

The sector’s push is supported by steel group Eurofer. Both groups have met with the Commission to press for the proposed export levy. The European Commission, which began monitoring aluminium scrap exports in July, has indicated it will assess whether to move forward on trade measures by the end of the third quarter of 2025.

Producers highlighted the importance of scrap in Europe’s climate agenda: recycling aluminium consumes about 95% less energy than producing primary aluminium from mined bauxite, making scrap a key component of reducing carbon emissions in metals industries. To that end, EU firms have already invested around €700 million in increasing recycling furnace capacity, aiming for 12 million tonnes of processing capacity.

Recyclers and export proponents, however, issued warnings. Representatives from recycling body EuRIC say that the large volume of scrap shipments reflects weak domestic demand in the EU and insufficient processing capacity, especially for mixed and complex scrap such as shredded vehicles. They warn that an export levy or restriction could distort the market and harm recycling operators without solving supply bottlenecks.

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Japan Defies Tariffs with 1% GDP Growth in Q2 https://todayinasian.com/business/japan-defies-tariffs-with-1-gdp-growth-in-q2/ https://todayinasian.com/business/japan-defies-tariffs-with-1-gdp-growth-in-q2/#respond Sat, 16 Aug 2025 11:21:00 +0000 https://todayinasian.com/?p=1363 BUSINESS – Japan’s economy showed unexpected resilience in the April–June quarter of 2025, expanding at a 1 percent annualized rate, exceeding forecasts despite the backdrop of U.S. tariff pressure. This marks the fifth consecutive quarter of growth for the country. Cited from The Economic Times, on a quarter-over-quarter basis, real gross domestic product (GDP) increased […]

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BUSINESS – Japan’s economy showed unexpected resilience in the April–June quarter of 2025, expanding at a 1 percent annualized rate, exceeding forecasts despite the backdrop of U.S. tariff pressure. This marks the fifth consecutive quarter of growth for the country.

Cited from The Economic Times, on a quarter-over-quarter basis, real gross domestic product (GDP) increased by 0.3 percent, surpassing the modest 0.1 percent projection and outperforming market expectations. The Cabinet Office reported a 2 percent boost in exports, driven primarily by automakers accelerating shipments ahead of tariff implementation, and aided by a 90-day suspension on increased duties, giving exporters a brief but crucial window to send goods.

Aside from export strength, capital expenditure rose by 1.3 percent year-on-year, exceeding general expectations and reflecting sustained business investment. Private consumption ticked up 0.2 percent, showing only modest improvement and highlighting ongoing challenges for consumer demand.

Read More: Trump Unveils 100% Tariff on Imported Semiconductors

Net external demand played a vital role too, contributing an estimated 0.3 percentage points to GDP growth, a reversal from the previous quarter’s drag. Overall, the performance affirmed Japanese policymakers’ hopes that the nation would avoid slipping into recession, despite global trade uncertainties.

Nonetheless, analysts caution that this growth may be short-lived, largely stemming from pre-tariff shipment surges. As those stockpiled exports taper off, the economy may struggle to sustain momentum into Q3. Coupled with elevated inflation and stagnant wage growth, the outlook for continued expansion remains fragile, evidenced by the government’s revised annual growth forecast of 0.7 percent, lowered from 1.2 percent, acknowledging mounting headwinds.

Market reactions were immediate: the Japanese yen strengthened against the dollar following the GDP data, prompting speculation that the Bank of Japan may shift toward raising interest rates, potentially as early as late in 2025.

So while Japan’s latest GDP performance exceeded expectations, macroeconomic vulnerabilities—tariff-induced shocks, weak consumption, and inflation—cast an uncertain light on the sustainability of growth. The coming months will reveal whether this quarter marks a robust recovery or merely a brief reprieve.

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Trump Unveils 100% Tariff on Imported Semiconductors https://todayinasian.com/business/trump-unveils-100-tariff-on-imported-semiconductors/ https://todayinasian.com/business/trump-unveils-100-tariff-on-imported-semiconductors/#respond Fri, 08 Aug 2025 12:59:56 +0000 https://todayinasian.com/?p=1344 BUSINESS – U.S. President Donald Trump revealed a sweeping policy imposing a 100% tariff on semiconductors imported into the United States. Cited from Al-Jazeera, the announcement, made at the White House on August 6, 2025, delivered a stark message: foreign-made chips will face new duties unless the producing companies have invested in—or committed to investing […]

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BUSINESS – U.S. President Donald Trump revealed a sweeping policy imposing a 100% tariff on semiconductors imported into the United States. Cited from Al-Jazeera, the announcement, made at the White House on August 6, 2025, delivered a stark message: foreign-made chips will face new duties unless the producing companies have invested in—or committed to investing in—manufacturing facilities on American soil. As Trump stated, “We’ll be putting a tariff of approximately 100 percent on chips and semiconductors, but if you’re building in the United States of America, there’s no charge”.

Major global chipmakers that have already established U.S. production sites—like TSMC with its Arizona plant—are expected to receive exemptions. Apple, for example, avoided penalties after announcing a further $100 billion investment in U.S. operations, although critics point out that much of its manufacturing network remains abroad.

The semiconductor industry and manufacturing sectors reacted swiftly. Companies such as Intel, Nvidia, and GlobalFoundries, with strong U.S. presence or plans, saw gains in their stock prices. The Philadelphia Semiconductor Index rose 1.5%, and the broader tech market rallied with the Nasdaq-100 up about 1.3%, buoyed by confidence in these exemptions.

Read More: Trump Imposes Steep 35% Tariffs on Canadian and Global Imports

Nonetheless, the new policy has unsettled smaller firms and nations whose chip production doesn’t involve U.S.-based investment. Semiconductor Industry Association officials, along with companies like Germany’s Infineon, voiced concerns over ambiguous exemption terms and potential cost increases for American-built products like automobiles and electronics. Countries such as the Philippines and Malaysia warned of economic disruption tied to lost access to U.S. markets.

Trump’s decision follows a broader trend: earlier tariffs on steel, aluminum, copper, and vehicles, now extended to the chip sector. This strategy, backed by an investigation under Section 232 of the Trade Expansion Act, signals Washington’s aggressive push to reclaim semiconductor manufacturing dominance. In tandem with these developments, the European Union secured a separate understanding with the U.S., capping its chip export tariff at 15%, a much softer rate compared to the sweeping 100% proposal.

Together, these moves mark a significant realignment in global trade: high tariffs for imports, generous exemptions for domestic investment, and an unmistakable nudge for foreign firms to manufacture in America. The implications span economic retaliation, political maneuvering, and fundamental shifts in global electronics supply chains.

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Trump Imposes Steep 35% Tariffs on Canadian and Global Imports https://todayinasian.com/business/trump-imposes-steep-35-tariffs-on-canadian-and-global-imports/ https://todayinasian.com/business/trump-imposes-steep-35-tariffs-on-canadian-and-global-imports/#respond Fri, 01 Aug 2025 15:14:05 +0000 https://todayinasian.com/?p=1320 BUSINESS – On July 31, 2025, U.S. President Donald Trump signed an executive order instituting steep new “reciprocal tariffs” on imports from dozens of countries, ranging from 10% to 41%, set to begin between August 1 and August 7, depending on the country and category. Canada, in particular, faces a significant hike from 25% to 35%, as the […]

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BUSINESS – On July 31, 2025, U.S. President Donald Trump signed an executive order instituting steep new “reciprocal tariffs” on imports from dozens of countries, ranging from 10% to 41%, set to begin between August 1 and August 7, depending on the country and category. Canada, in particular, faces a significant hike from 25% to 35%, as the administration accuses it of failing to curb fentanyl trafficking and meet trade expectations.

Under the new measures, tariff rates will include 50% for Brazil, 25% for India, 20% for Taiwan, and 39% for Switzerland. Other nations will see duties adjusted between 10% and 41%, depending on trade imbalances and ongoing negotiations with Washington. Products from countries not specifically listed in the agreement will face a baseline 10% import tax, though that rate may rise in the future.

Mexico continues to benefit from a 90-day reprieve on goods unrelated to automotive or metals sectors, while China’s trade deal remains unresolved, with a separate deadline set for August 12. The tariffs were deployed under the 1977 International Emergency Economic Powers Act, leveraging national-security grounds to sidestep trade agreements and impose broad duties on importers. A U.S. federal appeals court has since questioned the legality of this executive decision.

Financial markets reacted rapidly: Asian and European stocks fell, and U.S. futures dipped nearly 0.9%, reflecting investor anxiety over trade disruption and inflation risks. Still, analysts note some countries—including the EU, UK, Japan, and South Korea—negotiated reduced rates and retained favorable terms ahead of the deadline.

Read More: Paramount and Skydance Merge in $8.4B Deal to Form PSKY

Canada has voiced strong opposition to the 35% tariff increase. Prime Minister Mark Carney, elected in March 2025, condemned the decision and vowed to pursue retaliatory measures while diversifying trade ties beyond the U.S. In a notable ripple effect, U.S. chocolate makers face rising costs, while manufacturers in Canada and Mexico gain competitive advantage under existing USMCA rules that exempt their goods from the new duties—even if inputs originate outside North America.

Economists warn that higher tariffs will push up consumer prices in the U.S.—projected to rise by as much as 2.3%, costing the average household nearly $3,800 annually—and could result in a GDP contraction of nearly one full percentage point globally.

Trump has characterized the tariffs as economic leverage to correct trade imbalances and support American manufacturing. However, critics argue the policy undermines global norms and risks legal and diplomatic fallout. Market watchers expect prolonged global trade volatility and pressure on dollar valuations.

The sweeping tariffs highlight Trump’s intensified economic nationalism and foreshadow increased trade friction unless successful bilateral agreements deliver relief.

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Prabowo‑Trump Tariff Deal: A Win with Hidden Costs https://todayinasian.com/business/prabowo%e2%80%91trump-tariff-deal-a-win-with-hidden-costs/ https://todayinasian.com/business/prabowo%e2%80%91trump-tariff-deal-a-win-with-hidden-costs/#respond Sat, 19 Jul 2025 14:21:24 +0000 https://todayinasian.com/?p=1276 BUSINESS – Indonesian President Prabowo Subianto and U.S. President Donald Trump have clinched a tariff agreement that freezes U.S. tariffs on Indonesian exports at 19%—a significant reduction from the previously threatened 32% – while U.S. goods enter Indonesia tariff-free. The deal, confirmed in a call between Trump and Prabowo, reflects intense diplomacy and high-stakes negotiations […]

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BUSINESS – Indonesian President Prabowo Subianto and U.S. President Donald Trump have clinched a tariff agreement that freezes U.S. tariffs on Indonesian exports at 19%—a significant reduction from the previously threatened 32% – while U.S. goods enter Indonesia tariff-free. The deal, confirmed in a call between Trump and Prabowo, reflects intense diplomacy and high-stakes negotiations aiming to defuse the looming threat of punitive tariffs set to take effect August 1.

As part of the agreement, Indonesia has pledged to purchase 50 Boeing jets, and invest heavily in American energy ($15 billion) and agricultural products ($4.5 billion). Trump heralded the pact as opening U.S. access to Indonesia’s vast market, adding that “they are going to pay 19% and we are going to pay nothing,” while enjoying “full access to Indonesia”.

Domestically, Prabowo portrayed the accord as ushering in a “new era” of bilateral ties, praising the deal as a diplomatic success for Indonesia. Economic analysts echoed this sentiment, noting that the moderated tariff rate leaves Indonesia better positioned than other Southeast Asian countries under Trump’s trade policies.

However, experts warn of substantial trade-offs. While energy and agricultural sectors stand to gain, labor-intensive industries like footwear and textiles may still suffer from the 19% levies. And the deal does nothing to curb collateral damage from broader U.S. tariffs on China—Indonesia’s main trading partner—a factor that could dampen growth.

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Emerging voices from academic and policy circles also question the fallout. According to Dr Siwage Dharma Negara of ISEAS, while Prabowo and Trump have sealed the deal, “at what cost to Indonesia?”. Concerns focus on the risk that Indonesia may be sacrificing trade diversification and exposure to geopolitical instability in favor of short-term tariff relief. A side effect of the deal is that Indonesia has tied up significant resources purchasing U.S. goods, raising questions about long-term fiscal consequences and overreliance on strategic concessions. While the agreed volume of Boeing jets and energy purchases may stimulate specific sectors, it may bypass broader structural growth.

The 19% tariff, although an improvement, means Indonesia remains subject to a higher threshold than the global average—suggesting that competitiveness across sectors such as electronics or processed goods could still be constrained. Importantly, the deal’s broader context—amid Trump’s escalating tariffs on multiple trading partners such as the EU and Japan—raises concerns that Jakarta may find itself caught in a geopolitical trade turbulence.

While financial markets initially responded positively—the Indonesian stock index rose roughly 0.7%—analysts caution that long-term benefits depend on Indonesia’s ability to shield itself from future external shocks. Critics argue Jakarta must now intensify efforts toward export diversification, domestic industry upgrading, and broader trade partnerships—like the pending EU‑Indonesia agreement.

The tariff accord thus represents a diplomatic victory, but one entangled with strategic compromises. As Indonesia braces for higher bills on consumer imports and allocates resources toward pledged U.S. purchases, the true measure of success will lie in balancing short-term relief with sustainable economic resilience amid a volatile global trade landscape.

Artikel Prabowo‑Trump Tariff Deal: A Win with Hidden Costs pertama kali tampil pada todayinasian.com.

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