Asian Currencies Consolidate Amid U.S.-China Trade Talks
Asian currencies consolidated against the dollar in early trade amid U.S.-China trade talks in London.
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Yahoo
32 minutes ago
- Yahoo
How Chinese imports are skirting Trump's tariffs
There's a huge drop underway in Chinese imports entering the US — from China. But Chinese goods are arriving anyway, via other Asian nations such as Vietnam, Thailand, and Indonesia. That may be good news for shoppers, because it means cheap Chinese goods are still making it to US stores despite the higher costs imposed by President Trump's new import taxes. But shifting trade patterns will surely get Trump's attention, and the tariff-happy president could easily put a stop to it by raising import taxes on what are turning out to be loophole countries. Trump's aggressive tariff regime is meant to make most imported products more expensive to encourage more domestic production. But Trump's uneven approach has created opportunities for a kind of trade arbitrage that was all but inevitable. As things stand now, Trump has imposed new import taxes of 30% on most goods from China but only 10% on imports from most other nations. That 20% differential is a big advantage for the less-tariffed countries. Sure enough, trade data shows that Chinese exporters are almost certainly "transshipping" goods to the US by passing them through neighboring countries. Chinese data shows that exports to the US dropped 35% in May compared with a year earlier. But during the same period, Chinese exports to six other Asian nations jumped 15%, including a 22% increase in exports to Vietnam and Thailand, a 12% jump in exports to Singapore, and an 11% rise in shipments to Indonesia. "[China's] direct exports to the US are down sharply, but its exports to all kinds of places across Asia are up massively," economist Robin Brooks of the Brookings Institution posted on social media on June 9. "These are obviously transshipments to the US via third countries."The US Department of Commerce hasn't yet published trade data for May, but data for April shows the mirror image of the Chinese data. Imports from China fell 20% from 2024 levels, while there was a 48% jump in Vietnamese imports, a 32% jump in shipments from Thailand, and a 16% increase in goods from Malaysia. Trade experts have been predicting this shift since Trump began imposing new import taxes in February, because it's the same thing that happened during the trade wars Trump waged during his first presidential term. Vietnam, in particular, was a big beneficiary of Trump's tariffs on Chinese imports in 2018 and 2019. While imports from China fell by 11% from 2017 to 2019, imports from Vietnam boomed by 43%. Read more: What Trump's tariffs mean for the economy and your wallet Since Trump's first trade war, many Asian producers and their US customers have carefully diversified so they're not overdependent on China. The US now imports less clothing from China, as one example, and more from Bangladesh, Indonesia, Pakistan, and India. Transshipment can mean that some products are fully assembled in China and simply make a brief stopover in another country before heading to the US so that their country of origin isn't China. Governments tend to discourage that, however, because those countries gain little from merely serving as a way station for Chinese products headed to the US. Plus, it may attract unwanted attention from Trump. Chinese companies are also increasingly building their own production facilities outside of China. "There are two ways to transship," Jason Judd, executive director of the Global Labor Institute at Cornell University, told Yahoo Finance. "In one, you're just cheating. In the other, you disassemble your product in China and send the inputs and the know-how to a new place." In Cambodia, for example, most of the companies making goods that go to the US have Chinese ownership. Trump's "reciprocal" tariffs — on ice for the moment — are meant, in part, to target countries that are way stations for Chinese products. When Trump announced those nation-by-nation tariffs on April 2, Asian trade partners other than China got hit with some of the highest rates. The new tariff on Chinese imports was 34%. For Cambodia, the new tariff rate was 49%. Vietnam: 46%. Thailand: 36%. Indonesia: 32%. Malaysia: 24%. Those rates weren't based specifically on transshipment of Chinese products but on the size of the trade deficit in goods each country has with the US. The larger the deficit, the higher the tariff. Read more: 5 ways to tariff-proof your finances Trump suspended those tariffs on April 9, following a week of mayhem in financial markets. That eventually left the tariff rates at 30% on most imports from China and 10% on most imports from every other country. But Trump said the reciprocal tariffs could go back into effect if nations don't make trade deals with him one by one by a July 9 deadline. By then, a boom in imports from Asian nations other than China will give Trump plenty of justification for more reciprocal tariffs. But he may choose to overlook it. Trump seems to have a much bigger trade beef with China than he does with other nations. His advisers are also telling him that high tariffs across the board could mean shocking price increases on clothing, electronics, appliances, and many other things just as Americans start their back-to-school shopping this summer. After that will come a Christmas season possibly starring Trump as the Grinch. So Trump might end up talking tough on China and looking the other way as the country's products enter the side door. That would make stealthy Chinese imports an unintended innovation triggered by Trump's trade war. Rick Newman is a senior columnist for Yahoo Finance. Follow him on Bluesky and X: @rickjnewman. Click here for political news related to business and money policies that will shape tomorrow's stock prices.
Time of India
41 minutes ago
- Time of India
FC Goa to play Oman's Al Seeb at Fatorda for a place in ACL Two
Panaji: have been drawn to play Al Seeb FC (Oman) in the Preliminary Stage with the winners securing their spot at the AFC Champions League Two, Asian football's second-tier club competition. Tired of too many ads? go ad free now Goa qualified for Asian competitions after winning the Super Cup and now have a chance to play in the ACL Two, should they win the qualifier which is expected to be played at the Nehru Stadium in Fatorda on August 13. The ACL Two features the largest cast across the AFC's club competitions and the 2025-26 edition will see 29 sides—14 from the West region and 15 from the East (including the clubs eliminated from the ACL Elite Preliminary Stage of each region)—granted entry to the Group Stage. In the playoffs, Tajikistan's FC Regar-TadAZ take on Ahal FC of Turkmenistan; in the East, Philippines' Manila Digger FC square off against Persib Bandung of Indonesia. The winner of each Preliminary Stage tie will progress to the Group Stage, which comprises 16 teams in each region and starts on Sept 16. The three losing sides in the playoffs will enter the AFC Challenge League group stage. The AFC Champions League Two will feature 's Al-Nassr FC in the group stage. Other confirmed teams in the western region include Al Wasl FC (UAE), Al Ahli SC (Qatar), Esteghlal FC (Iran), PFC Andijon (Uzbekistan), Al Hussein (Jordan), Al Muharraq SC (Bahrain), Mohun Bagan Super Giant (India), FC Istiklol (Tajikistan) and FC Arkadag (Turkmenistan). The Preliminary Stage will be played across Aug 12 and 13, while the draws for the ACL Elite League Stage and ACL Two Group Stage will be held on Aug 15, with the ACGL Group Stage draw to be conducted on Aug 28.
Time of India
41 minutes ago
- Time of India
With Olympic dreams, ambitious Yash heads to Barcelona
Panaji: Yash Fadte has returned home after a successful four-year stint in the US, where he graduated from the University of Rochester, led them to its first Hoehn Cup, and won the Skillman Award, which recognised his sportsmanship and skill throughout his college career. Had the squash star accepted an internship offer and subsequently taken up the job, he could have stayed back and lived a comfortable life. A scholarship at Harvard was also turned down. Instead, he opted for the grind of professional squash with the dream of returning to the US, for the Los Angeles Olympics in 2028. 'Squash is my life, my big goal, and I cannot keep this on hold,' Yash told TOI recently. 'I can take up a job even later in my life.' The 23-year-old's big aim is to take part in the Olympics when squash makes its debut at the biggest sporting spectacle in sports. That's three years from now, and to help him move swiftly towards the goal, the four-time Asian junior medallist is moving to Barcelona. Yash will be based at Barcelona Global Squash, one of Europe's leading squash academies. 'I think it will help me a great deal since the world's best players all train there. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Alarma con cerradura inteligente gratis en Badajoz, instalación en un día Securitas Direct Alarma Ver oferta Undo It's in central Europe, so it's easier for me to travel everywhere and take part in international tournaments. Playing against top players will improve my game,' said Yash. Barcelona Global Squash is recognised as an attractive training destination for young players wishing to make the transition to the Professional Squash Association (PSA) world tour or young professionals already competing on the international circuit who are looking for a professional framework to move their game forward. 'I understand that making it to the Olympics won't be easy, but I don't want to be left with regrets. If I fail, no problem. I want to give it my best shot,' said Yash. As a junior, Yash has won the US Open, French Open, and won medals four times at the Asian championships. Olympics, though, is a different game altogether, with the world's best players vying for a spot. It won't be easy, particularly for someone who is only beginning to compete against the top-ranked players. 'A lot of the players who I was up against as a junior are doing well (in the seniors category) and that provides me hope,' said Yash. India is among the top eight countries in squash. For a place at the Olympics, Yash will face stiff competition at home itself with stars like Ramit Tandon, Abhay Singh, Velavan Senthilkumar and Veer Chotrani, all in the top five. 'Most of India's top squash players are backed by their state govts, industrial houses, or sports foundations. We have no such support. Even state govt has done little to help our cause. If govt just clears what is due to us, or delivers on the promises made in the state assembly, we will be in a much stronger position,' said Yash's father, Dilip, a former sportsperson who played Ranji Trophy matches for Goa, as well as county cricket in England. The assurance in the state legislative assembly was made by chief minister Pramod Sawant in 2020. 'We will consider 10 sportspersons every year (for financial assistance). The case of Yash Fadte will be considered,' Sawant had said while speaking on the congratulatory motion tabled by Tivim MLA Nilkant Halarnkar. Yash has not received a penny. In fact, he wasn't even considered for SAG's scheme for 'achieving excellence in sports at international level' that has a grant of Rs 30 lakh. 'It's now or never,' said Dilip.
