China EV war: Tesla, Nio, and Li Auto target mainland families with premium SUVs
The premium SUV segment has emerged as the new battlefront, as carmakers heed Beijing's call to end a brutal price war and chase affluent consumers to improve their bottom line.
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The Star
an hour ago
- The Star
Seoul proposes law to protect steel industry
Tough times: Steel coils at a port in Pyeongtaek, South Korea. The country's steel industry is caught between the global push for carbon neutrality, cheap Chinese imports and steep tariffs from the United States, lawmakers say. — AFP SEOUL: South Korea is launching an aggressive policy push to rescue its steel industry from mounting global pressure, unveiling a bipartisan bill aimed at helping domestic producers hit hard by a 50% US tariff and a surge of low-cost Chinese products. Announced on Monday by 106 lawmakers from both ruling and opposition parties, the proposed 'K-Steel Act' outlines a long-term industrial strategy that frames steel as a vital base for national security and economic resilience. 'South Korea's steel industry has grown rapidly since 1970. But today, it faces an unprecedented crisis, caught between the global push for carbon neutrality, a flood of cheap Chinese imports and steep tariffs from key trading partners,' lawmakers said in explaining the purpose of the bill. They warned that failure to act would leave South Korea exposed on multiple fronts. A shrinking domestic steel base could ripple across its broader industrial ecosystem, threatening other sectors from shipbuilding to electric vehicle development. 'This bill is about both survival and transformation,' said Representative Eoh Kiy-ku of the ruling Democratic Party and co-chair of the National Assembly Steel Forum. 'With bipartisan support, we plan to pass this bill quickly and follow up with additional legislation if needed.' Steel remains a pillar of South Korea's manufacturing economy, accounting for 4.8% of national output and supporting more than 430,000 jobs. But that foundation is under threat. Despite a recent South Korea-US tariff deal lowering duties on most goods to 15%, the United States will maintain a 50% tariff on South Korean steel. At the same time, the European Union's (EU) Carbon Border Adjustment Mechanism, set to be launched next year, will impose extra costs on South Korean steelmakers exporting to the EU unless they decarbonise fast. South Korea's push comes as other major economies, including the United States, EU and Japan, have already begun ramping up public support for their own steel sectors. From the US Inflation Reduction Act to EU climate subsidies, governments are blending industrial policy with climate action in a bid to secure supply chains, while hitting net-zero targets. The K-Steel Act lays out a comprehensive policy framework that would give the government a more direct role in shaping the industry's future. Central to the proposal is the creation of a presidential committee tasked with crafting five-year master plans and annual action roadmaps to steer the steel sector through economic and environmental challenges. To support the industry's green transition, the bill includes a wide range of financial incentives. These include subsidies, low interest loans, tax breaks and production cost support for companies investing in hydrogen-based and other low-emission technologies. It also introduces 'green steel zones' – designated areas where permitting and regulatory processes would be streamlined to encourage investment and innovation. The legislation also strengthens South Korea's defensive trade measures. It calls for tighter rules of origin, curbs on low quality steel imports and expanded authority for the government to counter unfair trade practices. In cases where market-driven restructuring proves insufficient, the government would be authorised to step in with financial and regulatory support, including temporary exemptions from antitrust laws for mergers deemed necessary to stabilise the industry. — The Korea Herald/ANN
New Straits Times
an hour ago
- New Straits Times
Copper, other base metals rise on Fed rate cut bets, China trade deal hopes
NEW YORK: Copper and other base metals rose on Thursday, supported by growing expectations of a Federal Reserve rate cut and optimism over a potential trade truce between the US and China. Three-month copper on the London Metal Exchange added 0.2 per cent to US$9,695 per metric ton as of 0148 GMT. The most-traded copper contract on the Shanghai Futures Exchange gained 0.4 per cent to 78,450 yuan (US$10,923.29) a ton. "There is some optimism about a possible trade deal with China. The deadline for that is August 12th, and the reports we are seeing are that the discussions are proceeding pretty well," said Marex analyst Edward Meir. "In other geopolitical developments (is) the possible summit meeting between Trump, Putin and Zelensky, which also should help weaken the dollar and give commodities a bit (of a) lift." On Tuesday, US President Donald Trump said the US was close to a deal with China and that he would meet Chinese President Xi Jinping before the end of the year if an agreement is struck. The dollar index languished near a more than one-week low after a surprisingly weak US jobs data last week triggered bets for Fed rate cuts from September. A weaker dollar makes greenback-denominated assets more affordable to holders of other currencies. Investors are closely watching the developments in Chile, the world's largest copper producer, after its El Teniente copper mine collapsed after an earthquake last week, killing six people. Copper miner Codelco has sought permission from Chile's mining regulator to reopen a part of its flagship mine, two sources with knowledge of the matter said. Among other metals in London, aluminium climbed 0.9 per cent to US$2,631.50 a ton, nickel rose 0.1 per cent to US$15,145, lead gained 0.4 per cent to US$2,001.50, tin added 0.1 per cent to US$33,380, and zinc advanced 0.7 per cent to US$2,808. SHFE aluminium rose 1 per cent to 20,800 yuan, nickel gained 0.4 per cent to 121,090 yuan, lead climbed 0.3 per cent to 16,880 yuan, tin added 0.1 per cent at 267,320 yuan, and zinc advanced 1.3 per cent to 22,610 yuan.
New Straits Times
4 hours ago
- New Straits Times
Trump imposes extra 25pct tariff on Indian goods, ties hit new low
WASHINGTON/NEW DELHI: US President Donald Trump on Wednesday imposed an additional 25 per cent tariff on Indian goods, citing New Delhi's continued imports of Russian oil in a move that sharply escalated tensions between the two nations after trade talks reached a deadlock. The new import tax, effective 21 days after August 7, will raise duties on some Indian exports to as high as 50 per cent - among the highest levied on any US trading partner. Trump's executive order imposing the extra tariff did not mention China, which also imports Russian oil, but later said he could announce similar further tariffs on Chinese goods. "It may happen ... I can't tell you yet," Trump told reporters. "We did it with India. We're doing it probably with a couple of others. One of them could be China." Analysts said Trump's move marks the most serious downturn in US-India relations since his return to office in January. The tariffs threaten to disrupt India's access to its largest export market, where shipments totalled nearly US$87 billion in 2024, hitting sectors like textiles, footwear, gems and jewelry. It also marks a shift from the warm ties seen during Trump and Modi's February meeting, they said, pointing out Trump's recent remarks calling India's economy "dead", its trade barriers "obnoxious" and accusing the country of profiting from cheap Russian oil while ignoring the killings of Ukrainians in Russia's three-and-a-half-year-old invasion of its neighbour. India's external affairs ministry called the decision "extremely unfortunate," noting that many other countries are also importing Russian oil in their national economic interest. "India will take all necessary steps to protect its national interests," it said, adding that purchases were driven by market factors and the energy needs of India's 1.4 billion people. The development comes as Indian Prime Minister Narendra Modi prepares for his first visit to China in over seven years, suggesting a potential realignment in alliances as relations with Washington fray. Oil prices edged up about 1 per cent on Wednesday after falling to a five-week low in the prior session after Trump penalised India for buying Russian oil and in light of a larger-than-expected US crude storage draw last week. Last week, US Treasury Secretary Scott Bessent warned China that continued Russian oil purchases could trigger new tariffs, as Washington prepares for the expiry of a U.S.-China tariff ceasefire on August 12. BLOW TO INDIAN EXPORTS Trade between the United States and India - the world's biggest and fifth-largest economies respectively - is worth over US$190 billion. Exporters and trade analysts warn that the tariffs - which Trump casts as a driver to reduce US trade deficits and reinvigorate domestic manufacturing - could severely disrupt Indian exports. "This is a severe setback. Nearly 55 per cent of our shipments to the US will be affected," said S.C. Ralhan, president of the Federation of Indian Export Organisations. The increased duties place Indian exporters at a 30–35 per cent disadvantage versus trade rivals in Vietnam, Bangladesh and Japan. "With such obnoxious tariff rates, trade between the two nations would be practically dead," said Madhavi Arora, economist at Emkay Global. Indian officials acknowledged pressure to return to negotiations with the Trump administration. A phased cut in Russian oil imports and diversification could be a part of the compromise. "We still have a window," said a senior Indian official, requesting anonymity. "The fact that the new tariffs take effect in 21 days signals the White House is open to talks." Another official said there were no immediate plans for Modi or senior leaders to travel to Washington, nor were any retaliatory measures being considered. Instead, the government is weighing relief for exporters, including interest subsidies and loan guarantees. A sharp drop in US-bound shipments could drag India's GDP growth below 6 per cent this year, down from the central bank's 6.5 per cent forecast, said Sakshi Gupta of HDFC Bank. India's rupee weakened in offshore non-deliverable forwards market while stock futures fell marginally after the announcement. "While markets have already started pricing in the risk of a sharp tariff hike, a near-term knee-jerk reaction is inevitable unless there's swift clarity or a breakthrough in negotiations," said Mayuresh Joshi, head of equity research for India at Willian O' Neil. Trump's move follows five rounds of inconclusive trade talks, which stalled over US demands for wider access to Indian agriculture and dairy markets. India's refusal to cut Russian oil imports - which hit a record US$52 billion last year - ultimately triggered the tariff escalation. US and Indian officials told Reuters a mix of political misjudgement, missed signals and bitterness scuttled trade deal negotiations between the world's biggest and fifth-largest economies, whose bilateral trade is worth over US$190 billion.
