Flurry of trade deals offers relief for some Asian countries, while others wait
A deal with China is under negotiation, with U.S. Treasury Secretary Scott Bessent saying an Aug. 12 deadline might be postponed again to allow more time for talks.
Steep tariffs on U.S. imports of steel and aluminum remain, however, and many other countries, including South Korea and Thailand, have yet to clinch agreements. Overall, economists say the tariffs inevitably will dent growth in Asia and the world.
The deals reached so far, ahead of Trump's Aug. 1 deadline
Trump and Japanese Prime Minister Shigeru Ishiba announced a deal Wednesday that will impose 15% tariffs on U.S. imports from Japan, down from Trump's proposed 25% 'reciprocal' tariffs.
It was a huge relief for automakers like Toyota Motor Corp. and Honda, whose shares jumped by double digits in Tokyo. Trump also announced trade deals with the Philippines and Indonesia. After meeting with Philippine President Ferdinand Marcos, Jr., Trump said the import tax on products from his country would be subject to a 19% tariff, down just 1% from the earlier threat of a 20% tariff.
Indonesia also will face a 19% tariff, down from the 32% rate Trump had recently said would apply, and it committed to eliminating nearly all of its trade barriers for imports of American goods. Earlier, Trump announced that Vietnam's exports would face a 20% tariff, with double that rate for goods transshipped from China, though there has been no formal announcement.
Talks with China may be extended
Negotiations with China are subject to an Aug. 12 deadline, but it's likely to be extended, Bessent told Fox Business on Tuesday. He said the two sides were due to hold another round of talks, this time in Sweden, early next week. Meanwhile, Trump said a trip to China may happen soon, hinting at efforts to stabilize U.S.-China trade relations.
A preliminary agreement announced in June paved the way for China to lift some restrictions on its exports of rare earths, minerals critical for high technology and other manufacturing. In May, the U.S. agreed to drop Trump's 145% tariff rate on Chinese goods to 30% for 90 days, while China agreed to lower its 125% rate on U.S. goods to 10%. The reprieve allowed companies more time to rush to try to beat the potentially higher tariffs, giving a boost to Chinese exports and alleviating some of the pressure on its manufacturing sector. But prolonged uncertainty over what Trump might do has left companies wary about committing to further investment in China.
No deals yet for South Korea and other Asian countries
Pressure is mounting on some countries in Asia and elsewhere as the Aug. 1 deadline for striking deals approaches.
Trump sent letters, posted on Truth Social, outlining higher tariffs some countries will face if they fail to reach agreements. He said they'd face even higher tariffs if they retaliate by raising their own import duties. South Korea's is set at 25%. Imports from Myanmar and Laos would be taxed at 40%, Cambodia and Thailand at 36%, Serbia and Bangladesh at 35%, South Africa and Bosnia and Herzegovina at 30% and Kazakhstan, Malaysia and Tunisia at 25%. Nearly every country has faced a minimum 10% levy on goods entering the U.S. since April, on top of other sectoral levies.
Economists expect tariffs to sap growth even with trade deals
Even after Trump has pulled back from the harshest of his threatened tariffs, the onslaught of uncertainty and higher costs for both manufacturers and consumers has raised risks for the regional and global economy. Economists have been downgrading their estimates for growth in 2025 and beyond.
The Asian Development Bank said Wednesday it had cut its growth estimate for economies in developing Asia and the Pacific to 4.7% in 2025 and 4.6% in 2026, down 0.2 percentage points and 0.1 percentage points.
The outlook for the region could be further dimmed by an escalation of tariffs and trade friction, it said. 'Other risks include conflicts and geopolitical tensions that could disrupt global supply chains and raise energy prices,' as well as a deterioration in China's ailing property market.
Economists at AMRO were less optimistic, expecting growth for Southeast Asia and other major economies in Asia at 3.8% in 2025 and 3.6% next year.
While countries in the region have moved to protect their economies from Trump's trade shock, they face significant uncertainties, said AMRO's chief economist, Dong He.
'Uneven progress in tariff negotiations and the potential expansion of tariffs to additional products could further disrupt trade activities and weigh on growth for the region,' he said.
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Scottish Sun
a few seconds ago
- Scottish Sun
Donald Trump launches scathing rant about windmills during EU trade talks
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He added: "It's great that we made a deal instead of playing games". EU chief Ursula von der Leyen also hailed it as a "huge deal", which came after "tough negotiations". However, ahead of the trade talks, the Republican chief went on a scathing rant about windmills and vowed not to let another one be built in the US. We will not allow a windmill to be built in the US. They're killing us. They're killing the beauty of our scenery, our valleys, our beautiful planes President Donald Trump At a press conference with Ms von der Leyen, he called them a "con job" and said "wind doesn't work". The American leader said: "We will not allow a windmill to be built in the US. They're killing us. "They're killing the beauty of our scenery, our valleys, our beautiful planes - and I'm not talking about aeroplanes, I'm talking about beautiful planes, beautiful areas in the US - and you look up and you see windmills all over the place. "It's a horrible thing, it's the most expensive form of energy. It's no good. Trump and EU chief von der Leyen discuss trade talks ahead of breakthrough deal "They're made in China, almost all of them, and when they start to rust and rot in eight years, you can't really turn them off, you can't bury them. "They won't let you bury the propellers, the props, because they are a certain type of fibre that doesn't go well with the land, that's what they say. "The environmentalists say you can't bury them because the fibre doesn't go well with the land. In other words, if you bury it, it will harm our soil. "The whole thing is a con job - it's very expensive, and in all fairness, Germany tried it, and wind doesn't work. "You need subsidy for wind, and energy should not need subsidy. With energy, you make money; you don't lose money." Mr Trump also claimed that windmills harm animals and said they were "very expensive". It's a horrible thing, it's the most expensive form of energy. It's no good... The whole thing is a con job... wind doesn't work President Donald Trump The US has around 1,500 wind power projects with over 70,800 wind turbines, spread across a total of 44 states, according to Inspire Clean Energy. But Mr Trump slammed them for ruining the landscape and claimed that several projects in Massachusetts are causing the death of whales in the surrounding area by "driving them loco". He added: "More importantly than that is it ruins the landscape, it kills the birds, they're noisy. "You know, you have a certain place in the Massachusetts area that over the last 20 years had one or two whales wash ashore. "And over the last short period of time, they had 18, ok, cause it's driving them loco. It's driving them crazy. "Now windmills will not come, it's not going to happen in the US. It's very expensive." 'Festival of resistance' A "FESTIVAL of resistance The protest at The White Horse Inn, Balmedie, Aberdeen, is close to the Trump International Scotland golf resort. 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You have windmills all over the place. "Some of the countries prohibit it, but... people ought to know, these windmills are very destructive. "They're environmentally- just the exact opposite, because the environmentalists, they're not really environmentalists, they're political hacks. "These are people that... they almost want to harm the country. I'm playing the best course I think in the world, Turnberry... and I look over the horizon and I see nine windmills. And I said, 'Isn't that a shame?' President Donald Trump "But you look at these beautiful landscapes all over the world... many countries have gotten smart and they will not allow it. They will not. "It is the worst form of energy, the most expensive form of energy, but windmills should not be allowed." It comes before the American leader is set to be pushed by Sir Keir Starmer on how to end the starvation of kids in Gaza. Earlier today, Mr Trump teed off on his second round in Turnberry after landing on Friday night, accompanied by a massive security team. Meanwhile, anti-Trump rallies across Scotland were mounted in Aberdeen and Edinburgh on Saturday as the American leader enjoyed a round of golf at his luxury Ayrshire resort. The US President landed in Scotland in a party mood after revealing his plans for a trade deal celebration with the Prime Minister and First Minister John Swinney. Mr Trump said: "We're going to do a little celebrating because we get along very well." He was welcomed by Scottish Secretary Ian Murray before being whisked to his luxury Turnberry resort 20 miles down the Ayrshire coast.
Daily Mail
a few seconds ago
- Daily Mail
Trump announces 'very powerful deal' with the EU
Published: Updated: President Donald Trump announced he had reached a 'very powerful' trade deal with the European Union that would lower barriers to U.S. exports and bring new European investments into the U.S. Trump called it 'a very powerful deal' as well as 'a very big deal. It's the biggest of all the deals.' He also called it 'the biggest deal ever made.' Speaking from his Turnberry golf course, Trump said European Union countries would purchase $750 billion of energy from the U.S. and provide an additional $600 billion in U.S. investments. 'All of the countries will be opened up to trade with the United States at zero tariff, and they're agreeing to purchase a vast amount of military equipment,' Trump added. 'We don't know what that number is.' It came after Trump inveighed against 'one-sided' trade with Europe as he sat down at his Turnberry golf course with the EU Commission president, while raging against windmills and saying there were prospects for reaching a deal imminently. 'We wanted to rebalance the trade relations,' said EU Commission Chair Ursula von der Leyen, confirming the agreement while sitting alongside Trump. Trump flashed his anger when a reporter asked if turmoil over the Jeffrey Epstein story had contributed to the rush to get the deal done. 'Oh, you've got to be kidding. No – had nothing to do with it. Only you would make that. That had nothing to do with it,' Trump responded. Both leaders made nice – after the 'Liberation Day' tariffs Trump rolled out in April threatened to cleave the powerful allies. Trump had more recently threatened a 30 percent tariff on the EU – providing an incentive to negotiate it down. Trump, upon arriving here in Scotland, said the powerful trade bloc must 'buy down' the number. 'Basically the European market is open,' said von der Leyen. 'It's 450 million people, so it's a good deal. It's a huge deal. Was tough negotiations. I knew it at the beginning, and it was indeed very tough, but we came to a good conclusion from both sides,' she said. The number comports with what had already been floated. 'We are agreeing that the tariff straight across for automobiles and everything else' would be 15 percent, said Trump. The agreement – with details still to be revealed – comes after Trump announced other agreements with Japan and other nations, while firing off a series of trade 'letters' announcing new tariffs he is imposing on other nations. Japan, too, would face a 15 percent rate on its auto exports to the U.S. After many economists warned that Trump's tariffs could break the alliance, the two leaders proclaimed new cooperation after they had agreed to broad terms. 'This deal will bring us very close together actually. It's a partnership in a sense,' Trump said. The progress came about an hour after Trump complained about the trade relationship. 'It's been a very one-sided transaction – very unfair to the United States,' he complained alongside von der Leyen, keeping her hands in her lap and her expressions muted. 'It's been a very, very one-sided deal, and it shouldn't be,' Trump fumed. He said a deal, if it can be reached, would be the biggest deal 'ever struck by anybody.' 'This is the biggest deal. People don't realize – this is bigger than any other deal. And it could happen – should happen,' he said. Fielding questions at a press event that put the 'working' in what his team calls a 'working visit,' Trump went off on a number of topics. His attacks quickly changed to wind turbines he said obstruct the view from his Scottish golf course. 'It ruins the landscape. It kills the birds. They're noisy,' Trump complained. He said what he terms windmills in Massachusetts were 'driving them loco – driving them crazy.' 'Today I'm playing the best course, I think, in the world: Turnberry ... And I look over the horizon and I see nine windmills. I say isn't that a shame,' he said. On immigration, another tension point, Trump said: 'We've sealed our borders. We have nobody coming in ... I think they're going to end up in the same place. You might as well go there quicker.' Von der Leyen shared his assessment on the chance of reaching an agreement, putting it at 50 percent. Trump got asked at one point if he could do better than 15 percent – the amount of a tariff on European imports that has been floated as a potential final number in an agreement. 'Better meaning lower? No,' Trump said flatly. But the former German politician showed some give in her own remarks and kept her composure even as Trump tore into European policies on trade, energy, and immigration.
Reuters
a few seconds ago
- Reuters
US and EU clinch deal with broad 15% tariffs on EU goods to avert trade war
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