Retail News CRM

Tag: tariff

  • Amazon Seeks to Lower Vendor Costs as Chinese Tariff Rates Drop: A Strategic Move in eCommerce Landscape

    Amazon Seeks to Lower Vendor Costs as Chinese Tariff Rates Drop: A Strategic Move in eCommerce Landscape

    E-commerce behemoth Amazon has confirmed that it is in conversations with several vendors to revise costs in response to the decrease in tariff rates imposed on imports from China. The company aims to reduce the amount it pays suppliers for goods sold through its digital platform, marking an attempt to roll back concessions made to cushion the impact of tariffs introduced by former US President, Donald Trump.

    According to an Amazon spokesperson, the company is consistently working with its diverse and valued selling partners to assist them in adjusting to the shifting landscape while maintaining a wide assortment of products and competitive prices for consumers.

    In the latter part of October the previous year, an agreement was reached between Trump and Chinese President Xi Jinping to reduce tariffs on Chinese imports. This was in return for Beijing tackling the illegal fentanyl trade, reinstating US soybean purchases, and ensuring the continuous flow of rare earth exports.

    As a result of the agreement, the average tariffs on Chinese imports to the US have been cut from 57% to approximately 47%.

    In related news, the US Supreme Court announced last week that it will deliver its next decisions on January 14, with several major cases still pending. These include the legal examination of Trump’s comprehensive global tariffs.

    Should the court rule that the extensive duties imposed by Trump under the International Emergency Economic Powers Act are unlawful, the administration could face the prospect of reimbursing nearly $150 billion in tariffs to importers.

    Questions & Answers

    What are the discussions between Amazon and vendors about?
    Amazon is in talks with several vendors about adjusting costs in response to a decrease in tariff rates on Chinese imports.

    What was the agreement between Trump and Xi Jinping?
    Trump and Xi Jinping agreed to reduce tariffs on Chinese imports. In return, Beijing would tackle the illegal fentanyl trade, reinstate US soybean purchases, and ensure the continuous flow of rare earth exports.

    What could be the implications of the US Supreme Court’s decision on Trump’s global tariffs?
    If the court declares the extensive duties imposed under the International Emergency Economic Powers Act as unlawful, the administration may have to refund nearly $150 billion in tariffs to importers.

  • UOB Bumps Up Vietnam’s Economic Growth Projection to 7.7%, Beating Previous Estimates Despite US Tariff Challenges

    UOB Bumps Up Vietnam’s Economic Growth Projection to 7.7%, Beating Previous Estimates Despite US Tariff Challenges

    United Overseas Bank (UOB) of Singapore has revised its predicted GDP growth rate for Vietnam upward, from 7.5% to 7.7%. This adjustment comes in response to Vietnam’s stronger-than-anticipated economic performance in the third quarter.

    Impressive Economic Performance Despite U.S. Tariff Threats

    Despite looming threats of U.S. tariffs, Vietnam showcased a robust economic performance by achieving a growth rate of 8.23% in the third quarter. This growth was primarily fueled by a surge in exports and manufacturing, according to UOB.

    In the year’s first nine months, exports soared by 16% year-on-year, while manufacturing rose by 10.8%. The Purchasing Managers’ Index also showed signs of recovery, expanding for three consecutive months following a three-month phase of contraction.

    Stabilized Outlook and Foreign Direct Investment

    The economic indicators suggest a stabilized economic outlook for Vietnam. This notion is further supported by the accelerated pace of foreign direct investment (FDI) into the country. FDI grew by 8.5% to reach $18.8 billion. If this trend continues, the year-end figures could potentially match 2024’s record-breaking total of $25.4 billion.

    However, UOB cautions that Vietnam’s open economy makes it susceptible to trade frictions. Exports of goods and services make up a significant 83% of Vietnam’s GDP, the second highest among ASEAN nations.

    Concerns Over the Impact of Tariffs and Exchange Rates

    Despite the robustness of Vietnam’s trade activities in the face of U.S. tariffs, there are concerns that export orders might dwindle as order frontloading eases and higher prices affect U.S. consumer demand in 2026.

    Another area requiring attention is the foreign exchange market. The Vietnamese dong was the second worst-performing Asian currency in the first nine months of 2025, depreciating 3.55% against the U.S. dollar. The currency that fared worse was the Indian rupee, which fell by 3.58%.

    Other Predictions of Vietnam’s Economic Growth

    Aside from UOB, other financial institutions have also revised their growth forecasts for Vietnam this year. HSBC, a British bank, predicts a growth figure of 7.9%, while the Asian Development Bank anticipates a growth rate of 6.7%.

    Vietnam’s Prime Minister, Pham Minh Chinh, expressed optimism last month, stating that with the current growth momentum, Vietnam could surpass its GDP growth target of 8% for this year, barring any major disruptions.

    Questions & Answers

    What is the revised GDP growth forecast for Vietnam by UOB?
    UOB has revised the GDP growth forecast for Vietnam from 7.5% to 7.7%.

    What factors are contributing to Vietnam’s economic growth?
    Strong exports, manufacturing, and foreign direct investment have been significant contributors to Vietnam’s economic growth.

    What concerns does UOB express regarding Vietnam’s economy?
    UOB has expressed concerns about possible trade friction due to Vietnam’s open economy. There are also concerns about the performance of the Vietnamese dong in the foreign exchange market.

  • Asia Pacific Bolsters Global Trade Resilience Amid Policy Fluctuations: DHL Tracker Reveals

    Asia Pacific Bolsters Global Trade Resilience Amid Policy Fluctuations: DHL Tracker Reveals

    The Asia Pacific region is becoming an increasingly significant catalyst in bolstering worldwide trade resilience, despite international commerce encountering numerous challenges due to policy fluctuations. This finding is part of a recent update to the DHL Global Connectedness Tracker, produced in collaboration with New York University’s Stern School of Business. This update is the first systematic evaluation of the responses of international trade and business investment to alterations in U.S. trade policy during the second term of President Trump.

    Asia Pacific’s Strategic Adaptability

    According to Ken Lee, DHL Express’s CEO for Asia Pacific, the region has exhibited unique adaptability and strategic positioning. “The latest data illustrates how cooperation within the region is intensifying, even amidst global uncertainty,” said Lee. He pointed out that businesses in the Asia Pacific are demonstrating agility and a forward-thinking attitude, from the ASEAN’s growing role in accommodating trade flows to Asia Pacific countries engaging more intensively with neighboring nations. Lee emphasised that DHL is well-placed to assist its customers in navigating any changes in trade patterns and pledged to continue developing capabilities in customer-preferred locations.

    Global Trade Growth Amidst Tariff Uncertainty

    In the first half of 2025, the DHL Global Connectedness Tracker indicated that international trade grew at an unprecedented pace, unmatched by any previous half-year since 2010, barring the pandemic recovery. There was a significant surge in U.S. imports early in 2025 as purchasers hastened to make purchases before the impending tariff increases. After this initial rush, global trade volumes continued to exceed the levels of the previous year.

    On examining the world’s 100 largest trade routes, six out of the ten fastest-growing were exports from an Asian economy, emphasising Asia’s integral role in propelling global trade. Notably, Hong Kong SAR, Thailand, Malaysia, and Vietnam were among the top 10 fastest-growing markets, underlining Asia Pacific’s increasing influence and durability in supply chain networks.

    Rise of Intra-Asia Trade

    Intra-Asia trade demonstrated ongoing integration and burgeoning connections. The intra-regional trade share of East Asia & Pacific rose from 55% to 56%. Furthermore, the greatest reductions in trade distances were observed in countries including Thailand, China, Singapore, and Hong Kong SAR. These shifts represent Asian economies’ redirection of trade flows towards regional partners to sustain growth and their efforts to boost infrastructure and connectivity, thereby enhancing the attractiveness of participating in cross-border trade.

    ASEAN’s Growing Role in Chinese Exports

    Despite a 15% decrease in exports to the U.S. during the first eight months of 2025, China fully balanced this loss with a 15% rise in exports to the ASEAN region. ASEAN emerged as a significant growth destination for Chinese exports, signifying the region’s increasing relevance in China’s trade portfolio. Vietnam, Thailand, and India witnessed the most substantial increases in their share of China’s exports, while the U.S., Russia, Korea, Brazil, and Mexico experienced decreases.

    Reflecting on the latest trends, Prof. Steven A. Altman, Director of the DHL Initiative on Globalization at NYU Stern’s Centre for the Future of Management, stated, “The trends in trade and international business investment thus far in 2025 do not substantiate the belief that globalisation is in regression.” He noted that despite existing policy threats to globalisation, companies are not generally retreating from international markets. Instead, they are managing risks and opportunities in a connected world.

    Questions & Answers

    What factors have contributed to the Asia Pacific region’s role in driving global trade resilience?
    Adaptability, strategic positioning, and increased collaboration among countries in the region have played major roles in solidifying the Asia Pacific’s position in global trade.

    How has the ASEAN region become a crucial aspect of China’s export strategy?
    Despite a drop in exports to the U.S., China has compensated by increasing exports to the ASEAN region by 15%. This shift highlights the growing importance of ASEAN in China’s trade portfolio.

    What trends in global trade have been observed during 2025?
    Despite policy shocks and tariff turbulence, global trade has grown significantly. Asian economies, in particular, have demonstrated resilience by adjusting trade flows towards regional partners and enhancing infrastructure and connectivity.

  • Vietnam And U.S. To Advance Trade Agreement Talks In Upcoming 2025 Meetings

    Vietnam And U.S. To Advance Trade Agreement Talks In Upcoming 2025 Meetings

    Vietnamese representatives are set to visit the United States in October and November 2025, with the goal of progressing discussions and finalizing a balanced trade agreement. Deputy Minister of Industry and Trade, Nguyen Sinh Nhat Tan, revealed this during a recent press conference, pointing out that Vietnam has been diligently working to expedite negotiation proceedings.

    Negotiation Principles and Goals

    The ongoing negotiations are being guided by principles of openness, constructiveness, equality, mutual respect, independence, self-reliance, and shared benefits. These principles consider the level of development of both nations. The ultimate aim is to foster stable and harmonious economic, trade, and investment relationships, in accordance with the Comprehensive Strategic Partnership between Vietnam and the U.S.

    End-of-Year Plans and Measures

    Bui Huy Son, Director of the Department of Planning, Finance and Enterprise Management at the Ministry of Industry and Trade (MoIT), stated the department is committed to meeting set targets and making new strides in the remaining months of the year. The MoIT is set to enforce a resolution from the Politburo that was issued on January 24, 2025, regarding international integration in a new context.

    Simultaneously, the MoIT is carefully observing changes in the U.S. tariff policy and is actively working with relevant authorities from both countries to identify and resolve emerging issues. This is in an effort to limit the risk of unfavorable trade measures being imposed on Vietnamese exports.

    Future Trade Negotiations

    The MoIT is prioritizing the commencement of Free Trade Agreement (FTA) discussions with the Southern Common Market (Mercosur) and the Gulf Cooperation Council (GCC) in the fourth quarter of 2025. It is also planning to initiate talks with Pakistan to broaden export opportunities, and aims to conclude FTA negotiations with the European Free Trade Association (EFTA) by the end of the year.

    Supporting Domestic Enterprises

    The MoIT is committed to addressing issues within domestic enterprises to decrease dependence on the FDI sector. It plans to continue working closely with businesses through regular consultations with industry associations and local authorities, thus providing timely policy advice to the Government and ensuring appropriate support.

    The department will also step up efforts around trade promotion, supply-demand connection, and product marketing to assist Vietnamese companies in reaching new customers and maintaining robust relations with traditional partners, especially in the U.S. market.

    The MoIT reiterated its commitment to enforcing origin-related regulations through inspections, licensing, and violation settlements, while also reinforcing supervision to combat trade remedy evasion and origin fraud.

    Questions & Answers

    What is the purpose of the Vietnamese delegation’s visit to the U.S. in late 2025?
    The delegation aims to progress discussions and finalize a reciprocal trade agreement with the United States.

    What principles guide the ongoing trade negotiations between Vietnam and the U.S.?
    The principles of openness, constructiveness, equality, mutual respect, independence, self-reliance, and shared benefits guide the negotiations, with the development levels of both nations taken into consideration.

    What are the MoIT’s plans for supporting domestic enterprises in Vietnam?
    The MoIT plans to address limitations within domestic enterprises, reduce reliance on the FDI sector, and work closely with businesses for regular consultations. The department also plans to intensify efforts around trade promotion, supply-demand connection, and product marketing.

  • Us Spirit Exports Plunge Amid Rising Trade Tensions, Major Markets Show Sharp Decline

    Us Spirit Exports Plunge Amid Rising Trade Tensions, Major Markets Show Sharp Decline

    The Distilled Spirits Council of the United States (DISCUS) has reported that the nation’s spirit exports saw a 9% decrease in the second quarter. The organization indicated that this marked a sharp downturn from the solid export performance recorded in 2024. The major markets that experienced steep falls include the European Union, Canada, Britain, and Japan, which collectively contribute to 70% of the total export value. DISCUS, a trade association representing leading spirit producers such as Pernod Ricard, maker of Jameson Irish whiskey, and Brown-Forman, producer of Jack Daniel’s, attributed the slump to increasing trade tensions.

    Significant Market Drops

    Canada recorded the highest decline, with US spirit exports plummeting 85% to less than $10 million in the second quarter. The majority of Canadian provinces maintain a ban on American spirits in their stores, a measure implemented in response to US tariffs targeting Canada. However, Canada lifted retaliatory tariffs in September.

    Meanwhile, other significant markets also experienced drops. Exports to the EU, the industry’s largest market, declined 12% to $290.3 million, while shipments to Britain decreased 29% to $26.9 million. Exports to Japan also fell 23% to $21.4 million.

    Industry Concerns

    “There’s a growing concern that our international customers are increasingly opting for domestically-produced spirits or imports from countries other than the US, signalling a shift away from our great American spirits brands,” commented DISCUS President Chris Swonger.

    Swonger’s statement reflects wider apprehensions in the consumer goods industry about rising anti-American sentiment in the wake of the extensive tariff regime and other policies pursued by the US government.

    Reports have also suggested that this export slump coincides with American whiskey producers struggling with slowing domestic sales and historically high inventory levels.

    Call for Tariff Revisions

    Swonger emphasized the interconnectedness of the spirits sector, implying that US tariffs impact the industry as a whole. He appealed to the administration to focus on reestablishing zero-for-zero tariffs with trading partners.

    Questions & Answers

    What was the percentage drop in US spirit exports in the second quarter?
    There was a 9% decrease in US spirit exports.

    Which country recorded the most dramatic fall in US spirit exports?
    Canada recorded the most dramatic fall with an 85% decrease in US spirit exports.

    What are some of the challenges faced by American whiskey producers?
    American whiskey producers are facing challenges such as slowing domestic sales and record-high inventory levels.

  • Us Clothing Brands Brace For Impact As Tariffs On Asian Textile Suppliers Soar

    Us Clothing Brands Brace For Impact As Tariffs On Asian Textile Suppliers Soar

    The US retail clothing and footwear industries are contending with increased tariff pressure as the government announced levies on numerous countries, including key Asian textile suppliers such as Vietnam and Indonesia. The tariffs are expected to be between 25 and 40 per cent.

    Impact Analysis on US Brands

    Here’s a look at how these tariffs might affect several key US clothing and footwear companies, based on their manufacturing locations.

    Ralph Lauren

    Ralph Lauren, which sources most of its goods from overseas, gets approximately 19 per cent from Vietnam and 15 per cent from China. Despite potential disruptions, the company remains confident in the diversified nature of its supply chain.

    Nike

    Nike imports about 43 per cent of its goods into the US. Its sports footwear production is split between Vietnam (50 per cent), Indonesia (27 per cent), and China (18 per cent). The brand’s sports apparel production is primarily sourced from Vietnam (28 per cent), China (16 per cent), and Cambodia (15 per cent). Nike plans to reassign its production in response to the new tariffs.

    Skechers

    Skechers sources roughly 40 per cent of its products from both China and Vietnam. The company is shifting its import sources away from China and relocating some of its production bases.

    Capri

    The majority of Capri’s Michael Kors line is produced in Asia, while Italy is the primary production location for Jimmy Choo. The company has been increasing production in Vietnam, Indonesia, and Cambodia.

    Tapestry

    Tapestry primarily manufactures in Vietnam, Cambodia, and the Philippines, which combined account for about 70 per cent of its production.

    American Eagle

    American Eagle primarily sources from Asia and plans to reduce its dependence on China by 2025.

    Abercrombie & Fitch

    Abercrombie & Fitch’s sourcing is split between Vietnam (35 per cent), Cambodia (22 per cent), India (12 per cent), China (7 per cent), and other locations (25 per cent).

    Lululemon

    Lululemon’s fabric sourcing is divided between Taiwan (35 per cent), China (28 per cent), and South Korea (11 per cent). Its manufacturing operations are in Vietnam (40 per cent), Cambodia (17 per cent), Sri Lanka (11 per cent), Indonesia (11 per cent), and Bangladesh (7 per cent).

    Puma

    Puma sources 30 per cent of its goods from China, 26 per cent from Vietnam, 13 per cent from Cambodia, and 12 per cent from Bangladesh.

    Questions & Answers

    What is the potential tariff exposure for US clothing and footwear companies?
    These companies could be exposed to new tariffs ranging from 25 to 40 per cent on imports from numerous countries.

    How are companies like Nike and Ralph Lauren responding to these tariffs?
    Companies are responding by diversifying their supply chains, relocating production, and reassigning production to manage the impact of the tariffs.

    Which countries are major sources for these US companies?
    Vietnam, China, Cambodia, Indonesia, and Taiwan are among the major sources for these US companies.

  • India Pursues Trump Tariff Agreement Following UK Trade Pact Breakthrough

    India Pursues Trump Tariff Agreement Following UK Trade Pact Breakthrough

    Starting July 9, U.S. President Donald Trump’s vast array of global trade tariffs is set to roll out, posing serious implications for economies and businesses worldwide.

    In a race against time, India is working diligently to forge an agreement that could shield its exports from a hefty 26% tariff imposed on goods shipped to its largest market. However, unlike many nations navigating these choppy waters, New Delhi has a fresh strategy in place: the recently announced free trade agreement (FTA) with the U.K. This deal not only highlights India’s proactive stance but also mandates some tough choices as it seeks to solidify its trading relationships.

    With the clock ticking down to the implementation of these tariffs, all eyes are on how India can maneuver its way through the evolving trade landscape. Meanwhile, business owners and consumers alike watch anxiously, wondering how these changes will ripple through their wallets and shopping carts.

    Questions & Answers

    Questions & Answers

    What are the main implications of the U.S. tariffs for India?
    The tariffs could impose a 26% levy on Indian goods, significantly increasing costs for exporters and potentially leading to a drop in trade volumes.

    How is India responding to the impending tariffs?
    India is actively seeking trade agreements and has recently announced a free trade agreement with the U.K. as part of its strategy to mitigate the impacts of U.S. tariffs.

    What does the future hold for India’s trade relationships?
    The path ahead is uncertain, but with proactive measures like the FTA with the U.K., India is positioning itself to adapt and thrive in the changing global trade landscape.

  • US and China Announce Temporary 90-Day Tariff Reduction in Collaborative Statement

    US and China Announce Temporary 90-Day Tariff Reduction in Collaborative Statement

    The United States and China have unveiled a groundbreaking agreement to reduce their contentious tariffs for a period of 90 days, marking a significant step forward in their fraught trade relationship. This announcement came following two days of intense negotiations in Geneva, where trade officials from both nations sought common ground.

    U.S. Treasury Secretary Scott Bessent enthusiastically shared the news with reporters, stating, “We have reached an agreement on a 90-day pause.” He also noted, “both sides will move their tariffs down” by an impressive 115 percentage points. This reduction aims to ease the economic tensions that have defined U.S.-China relations in recent years.

    In response to this positive development, Hong Kong’s financial markets reacted vigorously. The Hang Seng Index soared by an impressive 3.34%, gaining 762.94 points to close at 23,630.68 on Monday. The excitement in the markets highlights the optimism surrounding this agreement, offering a glimmer of hope for businesses and consumers alike.

    As world leaders navigate this complex economic landscape, one can’t help but wonder if this brief thaw will lead to more substantial cooperation or if the trade battle will continue. The stakes are high, and the world is watching closely.

    Questions & Answers

    What was agreed upon by the U.S. and China?
    Both nations have agreed to significantly reduce tariffs for a 90-day period, aiming to alleviate trade tensions.

    How did the stock market react to the announcement?
    Hong Kong’s Hang Seng Index reacted positively, soaring over three percent following the news, indicating strong market confidence.

    What impact could this agreement have on U.S.-China relations?
    While this temporary pause offers hope for improved relations, it remains to be seen if it will lead to a more sustained cooperation in the future.

  • Hanoi businesses do brisk business with Trump-Kim summit specials

    Hanoi businesses do brisk business with Trump-Kim summit specials

    Several enterprising businesses have cashed in on the Trump-Kim summit with signature products – craft beer, cocktails, haircuts and T-shirts. A standing bar on Tran Vu Street has already gained a lot of attention with a craft beer named Kim Jong Ale, a kimchi flavored beverage concocted in Saigon.

    Huong Anh, who manages the bar, has waxed lyrical about the beer for the occasion. “Kim Jong Ale is a customers’ favorite here. The inspiration behind this beer is the pure streams of Mount Paektu, which is located between North Korea and China,” she told reporters.

    Yet another bar on Hang Than Street brought out a cocktail called “Make the world great again”, mixing soju, bourbon and Fireball Cinnamon Whisky, pineapple juice, vanilla and grenadine.A wine bar in the capital city has also helped itself to some publicity and increased business with a cocktail called “Peace Negroniations,” a variation of the classic Negroni, made with pink-grapefruit soju, vermouth and bitters. We replaced gin with soju for this special cocktail,” bartender Chau said.

    It took two days to complete this recipe, said Ngo Dinh Tien, a bartender.

    A pizzeria has been offering free pizzas to people with names similar to that of Kim Jong-un and Donald Trump, and to those sporting the distinctive haircuts of both leaders, from February 20-28.

    To get such haircuts, the place to go to is the one on De La Thanh Street that has been offering these for free. The salon is even organizing a contest for people getting such haircuts, with the grand prize being free haircuts for three years.

    A South Korean restaurant in the My Dinh area has hung a banner on their door, featuring Kim Jong-un and Donald Trump and welcoming the summit. The owner said the poster has attracted a lot of attention with many customers taking selfies with it.

    An Old Quarter restaurant has hogged some attention for itself with hamburgers named after the two leaders – “Durty Donald” and “Kim Jong Yum,” served with U.S. and North Korean flags.


    Perhaps the hottest summit item has been souvenir T-shirts. Truong Thanh Duc’s small shop on Hang Bong Street has been operating at full capacity, making 500 shirts a day with a design that says peace and carries pictures of both leaders. Each T-shirt costs less than $5


    .

    Lees ook:

    Lees ook:

    Lees ook:

  • Asia markets rally as Trump delays China tariffs

    Asia markets rally as Trump delays China tariffs

    Shanghai led a rally across Asian markets Monday after Donald Trump said he would delay a hike in tariffs on Chinese goods citing “substantial progress” in trade talks and fuelling hopes of an end to their long-running stand-off. Optimism over the negotiations had already provided support to global equities, spurring a rally in January and February, but the president’s comments gave extra ammunition to investors to ramp up the buying.

    The news also fired currency markets with the yuan extending gains to a seven-month high, while other high-yielding, riskier units were also up against the dollar.

    Trump said on Twitter that the US “has made substantial progress in our trade talks with China on important structural issues including intellectual property protection, technology transfer, agriculture, services, currency, and many other issues”.

    He added: “As a result of these very productive talks, I will be delaying the US increase in tariffs now scheduled for March 1.”

    The president also said he planned to hold a summit with his Chinese counterpart Xi Jinping at his Mar-a-Lago estate in Florida to sign a deal.

    China’s Xinhua news agency added that the two sides had “made substantial progress on specific issues” including on transfer of technology, intellectual property and agriculture.

    ‘Sigh of relief’

    In morning trade, Shanghai jumped 2.8% and Hong Kong added 0.4% while Tokyo ended the morning 0.7% higher.

    Sydney and Singapore each put on 0.1%, while Seoul was flat, Taipei added 0.4% and Jakarta rose 0.3%.

    The gains in Asia followed another positive lead from Wall Street, where the Dow enjoyed its ninth straight weekly gain – the longest streak since May 1995.

    “This is a sigh of relief,“ said Ben Emons, managing director for global macro strategy at Medley Global Advisors. “Markets will still keep a level of caution, but this news is encouraging,“ he said.

    The upbeat sentiment lifted high-risk currencies, with the yuan hitting its highest level against the dollar since July, while South Korea’s won, the Australian dollar and the Indonesia rupiah were also well up.

    Forex traders will be closely watching speeches this week from top Federal Reserve officials – including chairman Jerome Powell’s appearance in front of lawmakers – hoping for clues about the bank’s monetary policy plans.

    Wall Street “will be looking for soothing comments about the future size of the balance sheet – the bigger the better – and insights into future rate hikes”, said Jeffrey Halley, senior market analyst at OANDA.

    Lees ook:

    Lees ook:

  • U.S. agency submits auto tariff probe report to White House

    U.S. agency submits auto tariff probe report to White House

    The U.S. Commerce Department sent a report on Sunday to U.S. President Donald Trump that could unleash steep tariffs on imported cars and auto parts, provoking a sharp backlash from the industry even before it is unveiled, the agency confirmed. Late on Sunday, a department spokeswoman said it would not disclose any details of the “Section 232” national security report submitted to Trump by Commerce Secretary Wilbur Ross. The disclosure of the submission came less than two hours before the end of a 270-day deadline.

    Trump has 90 days to decide whether to act upon the recommendations, which auto industry officials expect to include at least some tariffs on fully assembled vehicles or on technologies and components related to electric, automated, connected and shared vehicles.

    As the White House received the report, the industry unleashed what is expected to be a massive lobbying campaign against it.

    The industry has warned that feared tariffs of up to 25 percent on millions of imported cars and parts would add thousands of dollars to vehicle costs and potentially lead to hundreds of thousands of job losses throughout the U.S. economy.

    The Motor and Equipment Manufacturers Association, which represents auto parts suppliers, warned that tariffs will shrink investment in the United States at a time when the auto industry is already reeling from declining sales, Trump’s tariffs on steel and aluminum, and tariffs on auto parts from China.

    “These tariffs, if applied, could move the development and implementation of new automotive technologies offshore, leaving America behind,” it said in a statement. “Not a single company in the domestic auto industry requested this investigation.”

    The Commerce Department started its investigation in May 2018 at Trump’s request. Known as a Section 232 investigation, its purpose was to determine the effects of imports on national security and it had to be completed by Sunday.

    Automakers and parts suppliers are anticipating its recommendation options will include broad tariffs of up to 20 percent to 25 percent on assembled cars and parts, or narrower tariffs targeting components and technologies related to new energy cars, autonomous, internet-connected and shared vehicles.

    The Commerce Department alluded to a focus on emerging vehicle technologies when it opened the investigation.

    Administration officials have said tariff threats on autos are a way to win concessions from Japan and the EU. Last year, Trump agreed not to impose tariffs as long as talks with the two trading partners were proceeding in a productive manner.

    Trump said on Friday that tariffs protect industry and also help win trade agreements.

    “I love tariffs, but I also love them to negotiate,” he said.

    A report from the Center for Automotive Research in Ann Arbor, Michigan, published on Friday showed its worst-case scenario of a tariff of 25 percent would cost 366,900 U.S. jobs in the auto and related industries.

    U.S. light duty vehicle prices would increase by $2,750 on average, including U.S.-built vehicles, reducing annual U.S. sales by 1.3 million units and forcing many consumers to the used car market, the think tank’s report said.

    Major automaker groups said last year the cumulative effect for the United States would be an $83 billion annual price increase and argued there was no evidence auto imports posed a national security risk.

    Canada and Mexico each won duty-free access to 2.6 million vehicles as part of a new North American free trade deal even if the administration moves ahead with the tariffs.

    Lees ook:

  • Malaysia reviewing palm oil export duties

    Malaysia reviewing palm oil export duties

    Malaysia, the world’s second-largest palm oil producer, is reviewing the duty structure for its exports of the edible oil, according to its minister in charge of agriculture produced for export, to boost demand and reduce burgeoning stockpiles.

    “We are currently reviewing our present export duty structure to ensure a level playing field in the market,” said Primary Industries Minister Teresa Kok in an emailed response today to questions submitted earlier by Reuters.

    Palm oil producers in Southeast Asia have been grappling with slow exports as demand has waned on weaker currencies and higher import taxes. The demand slump has caused inventories in Malaysia to build to their highest in nearly 18 years while stockpiles in Indonesia, the world’s biggest palm producer, have also climbed.

    Palm oil prices fell to their lowest in three years earlier this month amid the demand slump, and were down 0.9% at RM2,108 a tonne today morning.

    Despite Malaysia cutting its export tax on crude palm oil to zero since September, industry participants say Indonesian palm is still more competitive as the country’s producers have sharply discounted their prices, causing Malaysia to actually increase imports from Indonesia. Production costs in Indonesia are also typically less than in Malaysia.

    Earlier this month, Indonesia also eased its rules on palm oil levies and derivative products to boost its exports.

    To counter the Indonesian import, Kok said the government is “currently encouraging our companies to use domestically produced palm oil to reduce the stockpile.”

    “By reducing imports, we could see a significant reduction in palm oil stocks in Malaysia and this would boost prices.”

    Prices next year are expected to be supported by demand from traditional markets as they replenish stocks, said Kok, adding that the implementation of a higher biodiesel mandate in 2019 will also help palm prices.

    Malaysia will raise the minimum bio-content in biodiesel to 10% for the transport sector and 7% for the industrial sector.

    Kok also said she expected production “in the region of 20 million tonnes” in 2019. The government last month forecast output of 20.5 million tonnes for 2019 and 19.8 million tonnes for this year.

    Lees ook:

    Lees ook:

    Lees ook:

  • Grab agrees to increase drivers’ income

    Grab agrees to increase drivers’ income

    Grab Indonesia, a ride-hailing application provider, plans to take measures to increase the income of its drivers in response to their protest earlier this week.

    “We will study this. We all agree to make a joint effort to increase the income [of the drivers],” said Grab Indonesia managing director Ridzki Kramadibrata in Jakarta on Wednesday.

    Ridzki and a representative of Go-Jek, another ride-hailing application provider, were at the palace on the invitation of Presidential Chief of Staff (KSP) Moeldoko to discuss the issue, following the meeting between President Joko “Jokowi” Widodo and representatives of the protesting drivers on Tuesday.

    Jokowi received the drivers’ representatives after thousands of drivers hit the street on Tuesday morning to demand the tariff increase, which was Rp 1,600 (12 US cents) per kilometer.

    During the meeting, Jokowi promised mediation between the drivers and the ride-hailing application providers.

    Riszki said he would soon announce the results of the study and get ready to talk to government officials.

    “The government has shown goodwill by asking us to negotiate [with the drivers]. We have already understood the problem. It is about income. But the drivers have to understand that tariffs are not the only factor in increasing their incomes,” he said.

    Meanwhile, Moeldoko said the drivers demanded the tariff increase to Rp 4,000 per km from Rp 1,600.

    He said the Transportation Ministry had also made calculations about the new tariffs that would be proposed in the mediation meeting.

    Lees ook:

  • India looks to cut tariff concessions on Chinese goods

    India looks to cut tariff concessions on Chinese goods

    India is expected to push for a new approach to tariff cuts at the 16-country trade bloc to prevent China from flooding its market with cheap goods. The commerce department is working on ways to give minimum tariff concessions to Chinese goods and delay the concessions by a long number of years even as it allows imports from other member countries at lower duties.

    As part of the Regional Comprehensive Economic Partnership (RCEP) trade negotiations, India is looking to treat Chinese products differently due to the burgeoning trade deficit it has with Beijing. In 2015-16, India’s exports to China were $9 billion while the imports were a staggering $61.7 billion leaving a trade deficit of $52.7 billion.
    India hopes this longer phasing out of tariff concessions and differential treatment, called “deviations”, will become the basis for RCEP negotiations. The new approach comes ahead of the next ministerial meeting on November 3-4 in the Philippines.

    Moreover, since India had to do away with a three-tier structure of differential duty cuts as part of the negotiations, deviations are the last ray of hope to contain the trade deficit with China under a formal trade agreement. In the earlier tiered structure, India had proposed to remove duties on 42.5% of the items traded with China, something that Beijing had termed as low.

    “We hope the tiers come back from the backdoor through deviations,” said a commerce department official, adding that the difference in tariff cuts may not be as much as in the earlier structure of three tiers.

    “We can look at longer staging periods for China by delaying the concessions by some years or not offer key products for tariff cuts to them at all,” the official said. Despite agreeing to a common concession, India is insisting on a single undertaking for the RCEP which means nothing is agreed until everything is agreed. “With single undertaking, we can be sure other members will not lose interest in India’s demands once we accept their demands for tariff concessions on goods,” the official said.

    Trade Openness

    Our problem with China seems to be a lack of trade access. And to better manage our trade deficit with China, we need to call for better trade access rather than opt to keep tariff barriers high. The latter option would only raise transactions costs and lead to thoroughly suboptimal policy going forward. are definite gains from trade and openness

    Lees ook:

  • China to cut consumer good tariffs

    China to cut consumer good tariffs

    China’s government says it will cut tariffs on consumer goods in a bid to get local Chinese to spend more in the mainland.

    The  move may well prove an additional blow to Hong Kong’s retail sector already reeling from reduced spending by mainland visitors.

    Reports from China’s mainland say tariffs on imported consumer goods will be cut “in parts of China” by the end of June. The move is aimed at increasing domestic consumption, shoring up economic growth and reducing the amount of money spent by mainlanders overseas.

    The decision was made last week at an executive meeting of the State Council, presided over by Premier Li Keqiang, who is concerned that mainlanders are now not only buying luxury goods overseas, but everyday items as well.

    The China Daily reports more duty-free stores will open at China’s borders and the individual allowances will be raised. The process of obtaining tax refunds will be eased – in tandem with a greater focus on catching smugglers.

    Chinese now account for an estimated 40 per cent of luxury good sales in France and for 35 per cent of luxury sales in Italy, according to data from the HSBC.

    Mainland retailers and travel specialists say it is difficult to predict the effect of the government’s move until a more detailed tariff schedule is released, along with duty free allowances and clarification on which product categories will be affected.

    Lees ook: