Bitcoin soars past key milestone
The world's leading cryptocurrency is continuing its monumental rise surpassing the $US120,000 ($AU182,000) mark for the first time, up 3.11 per cent to $122,643 ($AU186,708) during Monday's trading.
The jump in Bitcoin's price comes as the US House of Representatives begins deliberating a series of Crypto bills on Monday, dubbed 'Crypto Week.' Bitcoin surpasses a key milestone. Close-up generic Credit: istock
One of the most significant bills under consideration is the Genius Act, which could establish federal guardrails for the US dollar to be pegged to stablecoins and provide the pathway for private businesses to issue digital dollars.
The aim of the laws is to provide a clearer regulatory framework in the US for the digital asset industry.
eToro market analyst Josh Gilbert said investors were bringing into exchange traded funds on the back of US policy makers.
'Strong ETF inflows and a solid macro backdrop have helped drive market momentum and that momentum keeps driving new all-time highs,' he said.
'The pace of gains in recent weeks reflects not just growing demand, but the growing maturity of bitcoin as an asset class.'
Mr Gilbert said publicly traded companies are starting to adopt bitcoin as part of their treasury strategy in some instances taking out billion dollar stakes in the coin.
'At the same time, retirement funds and sovereign wealth funds are starting to gain exposure through ETFs, adding to the wave of demand chasing a fixed supply.
'Central banks keep running expansive monetary policies and global money supply keeps rising. Crypto Week is helping to drive interest in Bitcoin. NewsWire / Andrew Henshaw Credit: News Corp Australia
He also said inflation was helping to drive investors' interest.
'In that environment, an asset with fixed, decentralised supply cements itself as an alternative store of value,' Mr Gilbert said.
'Bitcoin as an asset in an investment portfolio is still in its infancy, and that in itself creates a huge opportunity for bitcoin and crypto to flourish over the next decade,' he said.
'This is just the beginning of widespread adoption, seamless integration with traditional finance, and robust regulatory frameworks.'
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Sydney Morning Herald
an hour ago
- Sydney Morning Herald
The country where 76 per cent of cars sold are electric
'We're interested in making sure that this rapid growth in these emerging markets doesn't follow the same trajectory as the developed markets,' said Rob de Jong, head of sustainable transportation for the United Nations Environment Program. But as Nepal has learnt, there are obstacles. The country has spent heavily on subsidies for EVs, and getting rid of the support too quickly could derail the shift to battery power. Even if petrol-powered passenger cars are phased out, cleaning the air will require public transportation to go electric as well. The Asian Development Bank, a multinational development lender, has been a key financier of Nepal's dams, transmission lines and charging networks. The head of the bank's resident mission in Nepal, Arnaud Cauchois, is cautious about the risk of backsliding. 'Given the economic sense that this EV conversion represents for Nepal, I think I would see it as unlikely that we would have major policy change,' Cauchois said. 'But that's basically a wish more than a conviction.' From Indian petrol to Chinese cars Many countries are trying to electrify their vehicle fleets, but the case for doing so is even more obvious in Nepal, with its clean energy embodied in the rivers that run down from the Himalayas. A 2015 border skirmish with India squeezed Nepal's petroleum imports, then its largest energy source. After that, the government invested heavily in hydropower and grid infrastructure, which have provided cheap, non-polluting sources of electricity. Nearly all households now have access, and the rolling blackouts have ended. To maximise the potential of its homegrown power, Nepal would need to use it for transportation. But EVs were still too expensive for mass adoption in a country with a per-capita economic output of about $US1400 ($2150). So, the government pulled all the levers it had to provide incentives. Nepal's primary source of revenue is taxes on imports. To make EVs cheaper, the government set its customs and excise taxes on the cars at a combined maximum of 40 per cent in 2021, compared with 180 per cent for petrol-powered cars. Now, the electric version of one Hyundai SUV costs less than $US38,000, while the petrol-powered model is about $US40,000. The Nepal Electricity Authority built 62 charging stations, in Kathmandu and on highways across the country. It allowed anyone to build chargers, levied negligible tariffs on their import and gave away transformers – the priciest component. Finally, the government set electricity costs for chargers at less than market rates. At those prices, fuelling a petrol-powered car cost about 15 times as much as charging an electric one. That was enough to create a business model for hotels, restaurants and other roadside entrepreneurs to install chargers on their own. 'At first, everybody was scared – how to establish and whether it would run or not,' said Kul Man Ghising, who managed the electricity authority until March. 'But we tried and tried and tried.' Businesses have now installed about 1200 chargers, according to the agency, and private residences are likely to have thousands more. 'A win-win situation' At first, automotive dealers were sceptical. But Yamuna Shrestha saw the potential. Originally a distributor for solar power equipment made by BYD, the largest electric car company in China, she saw some of its new models on a trip to the company's Shenzhen headquarters in 2016. She secured the licence to distribute BYD vehicles in Nepal a few years later, when few others thought EVs could gain traction. 'Many people were pushing for fossil fuels, but there was no one advocating for electric vehicles,' Shrestha said. Her sales took off when BYD released cars that could go further on a single charge and had high enough clearance to cope with Nepal's rough roads. Now, she has 18 dealerships and expects to sell 4000 vehicles in 2025. Loading But the competition is withering, as dozens of Chinese brands have entered the market. Dealers of Indian-made vehicles say they can't match the low price and high quality of vehicles coming from Chinese manufacturers, which have been pressing to get into any markets they can. 'There is a kind of geopolitical push when it comes to EVs that come into Nepal,' said Karan Kumar Chaudhary, who runs Suzuki dealerships and leads the Automobiles Association of Nepal. 'You are talking about models that compete with Tesla that are coming in at half the price of a Tesla, which is unrealistic, right? As a consumer, it's a win-win situation.' Jit Bahadur Shahi was convinced. After retiring from the national police last year, he paid about $US33,000 for a new electric minibus. He ferries passengers seven hours from Kathmandu to his town, Janakpur, on the Indian border. Ten round trips are enough to cover his monthly loan payments, and he expects to pay off the van in four years. 'It's OK. I'm happy,' Shahi, 43, said while charging the van on a Saturday. 'But the problem is that charging stations are not everywhere.' He also worries how much it will cost to fix the van after the warranty expires, and what will happen when its battery wears out. Loading Businesses and advocates in the country are concerned that Nepal may already be backing off its commitment to the electric transition. The young democracy has had three prime ministers in the past five years, and priorities have shifted with each of them. The nation's central bank doubled down-payment requirements for EVs this year. The federal government, seeing declining revenues from car imports, has been inching up its tariffs on EVs. The government also does not have a plan for the collection or recycling of batteries. And auto dealers worry that faulty vehicles from some of the smaller Chinese brands could discredit the category. They're pushing for an agency that would independently certify safety and quality. Rajan Babu Shrestha holds the licence to distribute cars in Nepal from Indian manufacturer Tata Motors. He has seen sales rocket on his electric models, but he could go back to selling petrol-powered vehicles if tariffs rose or subsidies for charging stations went away. 'It's a very positive direction they are going in, but it really comes down to the long-term policy,' Shrestha said. 'Stability is always a question mark.' EVs for everybody For now, the electric shift in passenger vehicles is moving swiftly. But a vast majority of Nepal's residents don't have cars. Instead, they use cheaper motorbikes or mostly petrol- and diesel-powered buses. If Nepal is to clean its air, it will have to electrify and expand its public transportation fleet as well. Chiri Babu Maharjan is the mayor of Lalitpur, the city across the Bagmati River from Kathmandu. Legions of scooters have made it difficult for vehicles of any kind to get anywhere on the narrow roads. Electric two-wheelers have not gained much traction in Nepal, as they have in India. 'We are trying to reduce fossil fuel vehicles in my town,' Maharjan said. 'This is very difficult, but we must do something.' The solution, he said, was to give his constituents a better alternative. To do that, Maharjan has placed his trust in Sajha Yatayat, a bus company that is mostly owned by the state. Electric buses are expensive, and transit fares in the region are capped at about US36¢ (55¢) for the longest ride. That makes financing the purchases difficult. Nepal's government has stepped in with about $US22 million to buy them. For the past two years, Sajha Yatayat has been running 41 green-painted electric buses. But Kanak Mani Dixit, who until recently served as Sajha Yatayat's chair, thinks about 800 of them are needed to establish a network of routes with enough frequency to replace individual vehicles. China is stepping into this front, too. Recently, the Chinese government offered to give Nepal 100 more 12-metre-long buses at no cost. Dixit acknowledges that China may have its own motivations, such as increasing acceptance of its larger electric models, but he doesn't worry about it. 'We have been accepting foreign assistance since 1950, and this is foreign assistance,' he said. Even with more buses, taming the chaotic scrum of exhaust-spewing motorbikes will require a regional transportation authority that could clear more space for public transit. The agency's creation has been mired in political disagreement, but Dixit hopes it can finally make clean, accessible mobility a reality. 'The Kathmandu Valley is just waiting for someone to turn the key,' Dixit said. 'Coincidentally, this is the time exactly when the electric buses have made an entry. And you could just suddenly find things much different another five years from now.'
The Age
an hour ago
- The Age
The country where 76 per cent of cars sold are electric
'We're interested in making sure that this rapid growth in these emerging markets doesn't follow the same trajectory as the developed markets,' said Rob de Jong, head of sustainable transportation for the United Nations Environment Program. But as Nepal has learnt, there are obstacles. The country has spent heavily on subsidies for EVs, and getting rid of the support too quickly could derail the shift to battery power. Even if petrol-powered passenger cars are phased out, cleaning the air will require public transportation to go electric as well. The Asian Development Bank, a multinational development lender, has been a key financier of Nepal's dams, transmission lines and charging networks. The head of the bank's resident mission in Nepal, Arnaud Cauchois, is cautious about the risk of backsliding. 'Given the economic sense that this EV conversion represents for Nepal, I think I would see it as unlikely that we would have major policy change,' Cauchois said. 'But that's basically a wish more than a conviction.' From Indian petrol to Chinese cars Many countries are trying to electrify their vehicle fleets, but the case for doing so is even more obvious in Nepal, with its clean energy embodied in the rivers that run down from the Himalayas. A 2015 border skirmish with India squeezed Nepal's petroleum imports, then its largest energy source. After that, the government invested heavily in hydropower and grid infrastructure, which have provided cheap, non-polluting sources of electricity. Nearly all households now have access, and the rolling blackouts have ended. To maximise the potential of its homegrown power, Nepal would need to use it for transportation. But EVs were still too expensive for mass adoption in a country with a per-capita economic output of about $US1400 ($2150). So, the government pulled all the levers it had to provide incentives. Nepal's primary source of revenue is taxes on imports. To make EVs cheaper, the government set its customs and excise taxes on the cars at a combined maximum of 40 per cent in 2021, compared with 180 per cent for petrol-powered cars. Now, the electric version of one Hyundai SUV costs less than $US38,000, while the petrol-powered model is about $US40,000. The Nepal Electricity Authority built 62 charging stations, in Kathmandu and on highways across the country. It allowed anyone to build chargers, levied negligible tariffs on their import and gave away transformers – the priciest component. Finally, the government set electricity costs for chargers at less than market rates. At those prices, fuelling a petrol-powered car cost about 15 times as much as charging an electric one. That was enough to create a business model for hotels, restaurants and other roadside entrepreneurs to install chargers on their own. 'At first, everybody was scared – how to establish and whether it would run or not,' said Kul Man Ghising, who managed the electricity authority until March. 'But we tried and tried and tried.' Businesses have now installed about 1200 chargers, according to the agency, and private residences are likely to have thousands more. 'A win-win situation' At first, automotive dealers were sceptical. But Yamuna Shrestha saw the potential. Originally a distributor for solar power equipment made by BYD, the largest electric car company in China, she saw some of its new models on a trip to the company's Shenzhen headquarters in 2016. She secured the licence to distribute BYD vehicles in Nepal a few years later, when few others thought EVs could gain traction. 'Many people were pushing for fossil fuels, but there was no one advocating for electric vehicles,' Shrestha said. Her sales took off when BYD released cars that could go further on a single charge and had high enough clearance to cope with Nepal's rough roads. Now, she has 18 dealerships and expects to sell 4000 vehicles in 2025. Loading But the competition is withering, as dozens of Chinese brands have entered the market. Dealers of Indian-made vehicles say they can't match the low price and high quality of vehicles coming from Chinese manufacturers, which have been pressing to get into any markets they can. 'There is a kind of geopolitical push when it comes to EVs that come into Nepal,' said Karan Kumar Chaudhary, who runs Suzuki dealerships and leads the Automobiles Association of Nepal. 'You are talking about models that compete with Tesla that are coming in at half the price of a Tesla, which is unrealistic, right? As a consumer, it's a win-win situation.' Jit Bahadur Shahi was convinced. After retiring from the national police last year, he paid about $US33,000 for a new electric minibus. He ferries passengers seven hours from Kathmandu to his town, Janakpur, on the Indian border. Ten round trips are enough to cover his monthly loan payments, and he expects to pay off the van in four years. 'It's OK. I'm happy,' Shahi, 43, said while charging the van on a Saturday. 'But the problem is that charging stations are not everywhere.' He also worries how much it will cost to fix the van after the warranty expires, and what will happen when its battery wears out. Loading Businesses and advocates in the country are concerned that Nepal may already be backing off its commitment to the electric transition. The young democracy has had three prime ministers in the past five years, and priorities have shifted with each of them. The nation's central bank doubled down-payment requirements for EVs this year. The federal government, seeing declining revenues from car imports, has been inching up its tariffs on EVs. The government also does not have a plan for the collection or recycling of batteries. And auto dealers worry that faulty vehicles from some of the smaller Chinese brands could discredit the category. They're pushing for an agency that would independently certify safety and quality. Rajan Babu Shrestha holds the licence to distribute cars in Nepal from Indian manufacturer Tata Motors. He has seen sales rocket on his electric models, but he could go back to selling petrol-powered vehicles if tariffs rose or subsidies for charging stations went away. 'It's a very positive direction they are going in, but it really comes down to the long-term policy,' Shrestha said. 'Stability is always a question mark.' EVs for everybody For now, the electric shift in passenger vehicles is moving swiftly. But a vast majority of Nepal's residents don't have cars. Instead, they use cheaper motorbikes or mostly petrol- and diesel-powered buses. If Nepal is to clean its air, it will have to electrify and expand its public transportation fleet as well. Chiri Babu Maharjan is the mayor of Lalitpur, the city across the Bagmati River from Kathmandu. Legions of scooters have made it difficult for vehicles of any kind to get anywhere on the narrow roads. Electric two-wheelers have not gained much traction in Nepal, as they have in India. 'We are trying to reduce fossil fuel vehicles in my town,' Maharjan said. 'This is very difficult, but we must do something.' The solution, he said, was to give his constituents a better alternative. To do that, Maharjan has placed his trust in Sajha Yatayat, a bus company that is mostly owned by the state. Electric buses are expensive, and transit fares in the region are capped at about US36¢ (55¢) for the longest ride. That makes financing the purchases difficult. Nepal's government has stepped in with about $US22 million to buy them. For the past two years, Sajha Yatayat has been running 41 green-painted electric buses. But Kanak Mani Dixit, who until recently served as Sajha Yatayat's chair, thinks about 800 of them are needed to establish a network of routes with enough frequency to replace individual vehicles. China is stepping into this front, too. Recently, the Chinese government offered to give Nepal 100 more 12-metre-long buses at no cost. Dixit acknowledges that China may have its own motivations, such as increasing acceptance of its larger electric models, but he doesn't worry about it. 'We have been accepting foreign assistance since 1950, and this is foreign assistance,' he said. Even with more buses, taming the chaotic scrum of exhaust-spewing motorbikes will require a regional transportation authority that could clear more space for public transit. The agency's creation has been mired in political disagreement, but Dixit hopes it can finally make clean, accessible mobility a reality. 'The Kathmandu Valley is just waiting for someone to turn the key,' Dixit said. 'Coincidentally, this is the time exactly when the electric buses have made an entry. And you could just suddenly find things much different another five years from now.'
The Advertiser
9 hours ago
- The Advertiser
Relief in Southeast Asia as Trump's tariffs level field
Southeast Asian countries are breathing a sigh of relief after the US announced tariffs on their exports that were far lower than threatened and levelled the playing field with a rate of about 19 per cent across the region's biggest economies. US President Donald Trump's global tariffs offensive has shaken Southeast Asia, a region heavily reliant on exports and manufacturing and in many areas boosted by supply chain shifts from China. Thailand, Malaysia and Cambodia joined Indonesia and the Philippines with a 19 per cent US tariff, a month after Washington imposed a 20 per cent levy on regional manufacturing powerhouse Vietnam. Southeast Asia - with economies collectively worth more than $US3.8 trillion ($A5.9 trillion) - had raced to offer concessions and secure deals with the United States, the top export market for much of the region. Malaysia's trade ministry said its rate, down from a threatened 25 per cent, was a positive outcome without compromising on what it called "red line" items. Thailand's finance minister said the reduction from 36 per cent to 19 per cent would help his country's struggling economy face global challenges ahead. "It helps maintain Thailand's competitiveness on the global stage, boosts investor confidence and opens the door to economic growth, increased income and new opportunities," Pichai Chunhavajira said on Friday. The extent of progress on bilateral trade deals with the United States was not immediately clear, with Washington so far reaching broad "framework agreements" with Indonesia and Vietnam, with scope to negotiate further. Thailand was about a third of the way there, Pichai said. The United States on Friday slashed the tariff rate for Cambodia to 19 per cent from earlier levies of 36 per cent and 49 per cent, a major boost for its crucial garments sector. "If the US maintained 49 per cent or 36 per cent, that industry would collapse in my opinion," Cambodia's Deputy Prime Minister and top trade negotiator Sun Chanthol said. In Thailand and Malaysia, business groups cheered a tariff rate that could signal a maintenance of the status quo between rival markets, among them beneficiaries of so-called "China plus one" trade. Much remains to be worked out by the Trump administration, including non-tariff barriers, rules of origin and what constitutes trans-shipment for the purposes of evading duties, a measure targeting goods originating from China with no or limited value added, where a 40 per cent tariff would apply. Vietnam has one of the world's largest trade surpluses with the United States, worth more than $US120 billion in 2024, and has been often singled out as a hub for the illegal rerouting of Chinese goods to America. It reached an agreement in July that slashed a levy from a threatened 46 per cent to 20 per cent, but concerns remain among some businesses that its heavy reliance on raw materials and components imported from China could lead to a wider application of the 40 per cent rate. Southeast Asian countries are breathing a sigh of relief after the US announced tariffs on their exports that were far lower than threatened and levelled the playing field with a rate of about 19 per cent across the region's biggest economies. US President Donald Trump's global tariffs offensive has shaken Southeast Asia, a region heavily reliant on exports and manufacturing and in many areas boosted by supply chain shifts from China. Thailand, Malaysia and Cambodia joined Indonesia and the Philippines with a 19 per cent US tariff, a month after Washington imposed a 20 per cent levy on regional manufacturing powerhouse Vietnam. Southeast Asia - with economies collectively worth more than $US3.8 trillion ($A5.9 trillion) - had raced to offer concessions and secure deals with the United States, the top export market for much of the region. Malaysia's trade ministry said its rate, down from a threatened 25 per cent, was a positive outcome without compromising on what it called "red line" items. Thailand's finance minister said the reduction from 36 per cent to 19 per cent would help his country's struggling economy face global challenges ahead. "It helps maintain Thailand's competitiveness on the global stage, boosts investor confidence and opens the door to economic growth, increased income and new opportunities," Pichai Chunhavajira said on Friday. The extent of progress on bilateral trade deals with the United States was not immediately clear, with Washington so far reaching broad "framework agreements" with Indonesia and Vietnam, with scope to negotiate further. Thailand was about a third of the way there, Pichai said. The United States on Friday slashed the tariff rate for Cambodia to 19 per cent from earlier levies of 36 per cent and 49 per cent, a major boost for its crucial garments sector. "If the US maintained 49 per cent or 36 per cent, that industry would collapse in my opinion," Cambodia's Deputy Prime Minister and top trade negotiator Sun Chanthol said. In Thailand and Malaysia, business groups cheered a tariff rate that could signal a maintenance of the status quo between rival markets, among them beneficiaries of so-called "China plus one" trade. Much remains to be worked out by the Trump administration, including non-tariff barriers, rules of origin and what constitutes trans-shipment for the purposes of evading duties, a measure targeting goods originating from China with no or limited value added, where a 40 per cent tariff would apply. Vietnam has one of the world's largest trade surpluses with the United States, worth more than $US120 billion in 2024, and has been often singled out as a hub for the illegal rerouting of Chinese goods to America. It reached an agreement in July that slashed a levy from a threatened 46 per cent to 20 per cent, but concerns remain among some businesses that its heavy reliance on raw materials and components imported from China could lead to a wider application of the 40 per cent rate. Southeast Asian countries are breathing a sigh of relief after the US announced tariffs on their exports that were far lower than threatened and levelled the playing field with a rate of about 19 per cent across the region's biggest economies. US President Donald Trump's global tariffs offensive has shaken Southeast Asia, a region heavily reliant on exports and manufacturing and in many areas boosted by supply chain shifts from China. Thailand, Malaysia and Cambodia joined Indonesia and the Philippines with a 19 per cent US tariff, a month after Washington imposed a 20 per cent levy on regional manufacturing powerhouse Vietnam. Southeast Asia - with economies collectively worth more than $US3.8 trillion ($A5.9 trillion) - had raced to offer concessions and secure deals with the United States, the top export market for much of the region. Malaysia's trade ministry said its rate, down from a threatened 25 per cent, was a positive outcome without compromising on what it called "red line" items. Thailand's finance minister said the reduction from 36 per cent to 19 per cent would help his country's struggling economy face global challenges ahead. "It helps maintain Thailand's competitiveness on the global stage, boosts investor confidence and opens the door to economic growth, increased income and new opportunities," Pichai Chunhavajira said on Friday. The extent of progress on bilateral trade deals with the United States was not immediately clear, with Washington so far reaching broad "framework agreements" with Indonesia and Vietnam, with scope to negotiate further. Thailand was about a third of the way there, Pichai said. The United States on Friday slashed the tariff rate for Cambodia to 19 per cent from earlier levies of 36 per cent and 49 per cent, a major boost for its crucial garments sector. "If the US maintained 49 per cent or 36 per cent, that industry would collapse in my opinion," Cambodia's Deputy Prime Minister and top trade negotiator Sun Chanthol said. In Thailand and Malaysia, business groups cheered a tariff rate that could signal a maintenance of the status quo between rival markets, among them beneficiaries of so-called "China plus one" trade. Much remains to be worked out by the Trump administration, including non-tariff barriers, rules of origin and what constitutes trans-shipment for the purposes of evading duties, a measure targeting goods originating from China with no or limited value added, where a 40 per cent tariff would apply. Vietnam has one of the world's largest trade surpluses with the United States, worth more than $US120 billion in 2024, and has been often singled out as a hub for the illegal rerouting of Chinese goods to America. It reached an agreement in July that slashed a levy from a threatened 46 per cent to 20 per cent, but concerns remain among some businesses that its heavy reliance on raw materials and components imported from China could lead to a wider application of the 40 per cent rate. Southeast Asian countries are breathing a sigh of relief after the US announced tariffs on their exports that were far lower than threatened and levelled the playing field with a rate of about 19 per cent across the region's biggest economies. US President Donald Trump's global tariffs offensive has shaken Southeast Asia, a region heavily reliant on exports and manufacturing and in many areas boosted by supply chain shifts from China. Thailand, Malaysia and Cambodia joined Indonesia and the Philippines with a 19 per cent US tariff, a month after Washington imposed a 20 per cent levy on regional manufacturing powerhouse Vietnam. Southeast Asia - with economies collectively worth more than $US3.8 trillion ($A5.9 trillion) - had raced to offer concessions and secure deals with the United States, the top export market for much of the region. Malaysia's trade ministry said its rate, down from a threatened 25 per cent, was a positive outcome without compromising on what it called "red line" items. Thailand's finance minister said the reduction from 36 per cent to 19 per cent would help his country's struggling economy face global challenges ahead. "It helps maintain Thailand's competitiveness on the global stage, boosts investor confidence and opens the door to economic growth, increased income and new opportunities," Pichai Chunhavajira said on Friday. The extent of progress on bilateral trade deals with the United States was not immediately clear, with Washington so far reaching broad "framework agreements" with Indonesia and Vietnam, with scope to negotiate further. Thailand was about a third of the way there, Pichai said. The United States on Friday slashed the tariff rate for Cambodia to 19 per cent from earlier levies of 36 per cent and 49 per cent, a major boost for its crucial garments sector. "If the US maintained 49 per cent or 36 per cent, that industry would collapse in my opinion," Cambodia's Deputy Prime Minister and top trade negotiator Sun Chanthol said. In Thailand and Malaysia, business groups cheered a tariff rate that could signal a maintenance of the status quo between rival markets, among them beneficiaries of so-called "China plus one" trade. Much remains to be worked out by the Trump administration, including non-tariff barriers, rules of origin and what constitutes trans-shipment for the purposes of evading duties, a measure targeting goods originating from China with no or limited value added, where a 40 per cent tariff would apply. Vietnam has one of the world's largest trade surpluses with the United States, worth more than $US120 billion in 2024, and has been often singled out as a hub for the illegal rerouting of Chinese goods to America. It reached an agreement in July that slashed a levy from a threatened 46 per cent to 20 per cent, but concerns remain among some businesses that its heavy reliance on raw materials and components imported from China could lead to a wider application of the 40 per cent rate.
