Navigating M'sia through Trump's tariff storm
One of his administration's early foreign policy actions in his second, non-consecutive term is a renewed crackdown on countries aligning with Brics, a coalition of emerging economies challenging United States-led global financial dominance.
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The Star
28 minutes ago
- The Star
New US tariffs draw regional reactions across Asia-Pacific
ANKARA (Bernama-Anadolu): Asia-Pacific nations have responded to the United States' newly announced tariffs with mixed views, with several countries welcoming reductions secured through negotiations, while others criticised the move as punitive and unfair, Anadolu Ajansi (AA) reported. On Thursday, US President Donald Trump signed an executive order modifying tariff rates for dozens of countries, ahead of his self-imposed Aug 1 trade deal deadline. Taiwan described the new 20 per cent US tariff on its goods as "provisional,' with President Lai Ching-te expressing hope that the rate would be lowered in a final agreement. He noted that both sides had completed technical consultations while protecting Taiwan's national and industrial interests, said AA. Thailand welcomed the tariff cut to 19 per cent from a previously proposed 36 per cent, with Deputy Prime Minister and Finance Minister Pichai Chunhavajira saying the move reflects a strong US-Thailand partnership and will bolster economic growth. Cambodia, which previously faced a 49 per cent tariff, welcomed the reduced 19 per cent rate, while also revealing a purchase of 10 Boeing aircraft from the US. Bangladesh successfully negotiated its tariff down to 20 per cent from a proposed 35 per cent. "That's good news for our apparel sector and the millions who depend on it," said Bangladesh Security Adviser Khalilur Rahman. New Zealand, however, criticised the 15 per cent tariff imposed on its exports, calling it "unwarranted.' Trade Minister Todd McClay told Radio New Zealand (RNZ) that his country was being unfairly penalised over a relatively small trade imbalance with the US, AA added. Under the new order, the US imposed varied tariffs on several Asia-Pacific nations; 15 per cent on Afghanistan, 20 per cent on Bangladesh, 25 per cent on Brunei, 19 per cent on Cambodia, 25 per cent on India, 19 per cent on Indonesia, 15 per cent on Japan, 40 per cent on Laos, and 15 per cent on Fiji. Tariffs were also set at 19 per cent on Malaysia, 40 per cent on Myanmar, 15 per cent on New Zealand, 19 per cent on Pakistan, 15 per cent on Papua New Guinea, 19 per cent on the Philippines, 15 per cent on South Korea, 20 per cent on Sri Lanka, 19 per cent on Thailand, and 20 per cent on Vietnam. - Bernama-Anadolu
The Star
28 minutes ago
- The Star
China, HK stocks book steepest weekly losses since April on soft data, Trump tariffs
SHANGHAI: Mainland China and Hong Kong stocks extended their declines on Friday, posting their steepest weekly losses since April, weighed down by soft domestic economic data and worries over global trade following U.S. President Donald Trump's new tariffs. At the close, the Shanghai Composite index had fallen 0.37% to 3,559.95 points, while the blue-chip CSI300 index had lost 0.51%. For the week, the SSEC slipped by 0.94% and the CSI300 dropped by 1.75%. Both indexes booked their first weekly losses in six, and were down by the most since early April when Trump first initiated reciprocal tariffs. In Hong Kong, the Hang Seng index tumbled 1.07% to 24,507.81 points, while the Hang Seng China Enterprises index fell 0.88% to 8,804.42 points. For the week, the benchmark HSI plummeted 3.47%, recording the first weekly loss in a month and dropping by the most since early April. Trump slapped steep tariffs on exports from dozens of trading partners, pressing ahead with his plans to reorder the global economy ahead of a Friday trade deal deadline. "The U.S. deals with other economies will also affect China's trade outlook," economists at ANZ said in a note on Friday. "If the U.S. fully enforces around 20% tariffs and 40% transshipment tariffs on ASEAN, which accounted for 17.8% of China's exports in the first half of this year, the supply chain activity in the region will be strained." Meanwhile, the United States believes it has the makings of a trade deal with China, but it is "not 100% done," U.S. Treasury Secretary Scott Bessent said on Thursday. China's factory activity contracted in July, both official and private surveys showed, suggesting the economy lost momentum following robust growth in the first half of the year. "After a more resilient than expected trade environment in the first half of 2025, momentum could soften a bit further in July," said Lynn Song, chief economist for Greater China at ING, noting market attention will be shifted to trade data due next Thursday for more clues on the health of the broad economy. Around the region, MSCI's Asia ex-Japan stock index was weaker by 1.41%, while Japan's Nikkei index closed down 0.66%. - Reuters
The Sun
28 minutes ago
- The Sun
Oil steady as tariff worries offset Russian supply fears
OIL prices were little changed on Friday after falling more than 1% in the previous session as traders digested the impact of higher U.S. tariffs that may curtail economic activity and lower global fuel demand growth. Brent crude futures were down 7 cents, or 0.1%, to $71.63 a barrel at 0656 GMT. U.S. West Texas Intermediate crude was down 10 cents, or 0.14%, to $69.16 a barrel. Still, Brent prices are set to gain 4.9% for the week while WTI is set to climb 6.4% after U.S. President Donald Trump earlier this week threatened to place tariffs on buyers of Russian crude, particularly China and India, to try to pressure Russia into halting its war against Ukraine. 'We think the resolution of trade deals to the satisfaction of the market – more or less, barring a few exceptions – has been the key driver for oil price bullishness in recent days, and further progress on trade talks with China in future could be a further confidence booster for the oil market,' said Suvro Sarkar, energy sector team lead at DBS bank. On Friday though, investors were more focused on Trump's imposition of new, and mostly higher, tariff rates on U.S. trading partners set to go into effect from August 1. Trump signed an executive order on Thursday imposing tariffs ranging from 10% to 41% on U.S. imports from dozens of countries and foreign territories including Canada, India and Taiwan that failed to reach trade deals by his deadline of August 1. Some analysts have warned the levies will limit economic growth by raising prices, which could weigh on oil consumption. On Thursday, there were signs that existing tariffs are already pushing prices higher in the U.S., the world's biggest economy and oil consumer. U.S. inflation increased in June as tariffs boosted prices for imported goods such as household furniture and recreation products. This is supporting views that price pressures could pick up in the second half of the year and delay Federal Reserve interest rate cuts until at least October. Maintaining interest rates could also impact oil as higher borrowing costs can limit economic growth. At the same time, Trump's threats to impose 100% secondary tariffs on Russian crude buyers have supported prices because of concerns that would disrupt oil trade flows and remove some oil from the market. DBS' Sarkar said that India's slowing of Russian imports may lead to some supply curtailment, but that that would be mostly negated by Chevron resuming oil production in Venezuela, record U.S. production, and growing U.S. supply. JP Morgan analysts said in a note on Thursday that Trump's warnings to China and India of penalties on their ongoing purchases of Russian oil potentially put 2.75 million barrels per day of Russian seaborne oil exports at risk. The two countries are the world's second- and third-largest crude consumers, respectively. 'The Trump administration, like its predecessors, will likely find sanctioning the world's second-largest oil exporter unfeasible without spiking oil prices,' the analysts said, referring to Russia. - Reuters
