Travel, tourism-related US businesses feel pinch from lower visitor arrivals
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Independent Singapore
3 hours ago
- Independent Singapore
Trump softens stance on Vietnam, announces new trade deal days before tariff hike
WASHINGTON/HANOI: In an astonishing declaration a few days before an extensive fresh round of tariffs was scheduled to come into force, President Donald Trump divulged a trade arrangement with Vietnam that enforces a pointedly lower tariff than what was announced earlier. Trump eases off on Vietnam, announces new trade framework According to the latest Reuters report, instead of the 46% levy imposed in April, Vietnamese exports to the U.S. will now be facing a 20% tariff. In the meantime, goods diverted through Vietnam from third countries, specifically China, will be slapped with a 40% transshipment charge. 'It is my great honour to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam,' Trump wrote on Truth Social after a call with Vietnamese President To Lam. In response, Vietnam consented to give U.S. exporters privileged access to its market, possibly including zero tariffs on some products and enhanced access for 'made-in-America' big-engine automobiles. While Trump viewed the arrangement as a major win, specifics such as which products will be impacted or how transshipment guidelines will be imposed remain unclear. Nonetheless, the statement aided in the 'cooling' of economic strains with Vietnam. See also Wealth of US billionaires soars during pandemic U.S.-Vietnam economic ties deepen amid global trade shifts Vietnam's quick rise as a U.S. trading ally originated from previous Trump-era tariffs on Chinese imports, which prompted countless producers to move production to Southeast Asia. Since 2018, Vietnam's exports to the U.S. have increased more than two and a half times, from under $50 billion to $137 billion in 2024. On the other hand, U.S. exports to Vietnam have grown more modestly, by just 30%, over the same period. The Vietnamese régime hailed the contract as a move toward more robust ties. Hanoi repeated its plea to the U.S. to formally identify Vietnam as a market economy and to loosen restrictions on high-tech exports, old priorities for Vietnam's administration. Global trade realignments as July 9 tariff cliff approaches Trump's move to reduce the tariff for Vietnam comes just ahead of a July 9 target, when he is projected to increase duties on most imports. More than a dozen countries are now scurrying to negotiate analogous agreements with the U.S. to evade high tariffs. See also The Global Economy's Fundamental Weakness The Vietnam arrangement reflects a current transaction made with the UK, which acknowledged a 10% tariff on many products in return for privileged access to sell aircraft, locomotives and beef in the U.S. Discussions with India and Japan are in progress, but have yet to produce significant results. Forecasters say Trump's Vietnam agreement, like others, is just like a prescribed trade agreement but hasn't settled key implementation questions. Nevertheless, it will help keep strategic bonds with Hanoi as the U.S. seeks to stabilise economic interests and regional security alliances in the face of growing Chinese influence. 'Had Trump stuck with 46%, Vietnam feared being outcompeted by other Southeast Asian nations,' said Murray Hiebert of the Centre for Strategic and International Studies. 'That could have damaged both trade ties and military cooperation with the U.S.'
CNA
7 hours ago
- CNA
Travel, tourism-related US businesses feel pinch from lower visitor arrivals
From the bright lights of New York City to the coastal beauty of California, the United States has long been a tourism destination for travelers from around the world. The industry added more than US$2.6 trillion to the US economy last year alone, supporting more than 20 million jobs. But this year, international arrivals are slumping as travellers weigh up rising costs and how they feel about America in general. As Toni Waterman reports, businesses are feeling the pinch.
CNA
8 hours ago
- CNA
Oil falls on signs of weak US demand ahead of key jobs report
Oil prices eased on Thursday, reversing gains from the previous session, on concerns over weak U.S. demand after government data showed a surprise build in inventories in the world's biggest crude consumer. Brent crude futures fell 24 cents, or 0.35 per cent, to $68.87 a barrel by 0044 GMT after gaining 3 per cent on Wednesday. U.S. West Texas Intermediate crude fell 24 cents, or 0.36 per cent, to $67.21 a barrel after climbing 3.1 per cent previously. The U.S. Energy Information Administration said on Wednesday domestic crude inventories rose by 3.8 million barrels to 419 million barrels last week. Analysts in a Reuters poll had expected a drawdown of 1.8 million barrels. Gasoline demand dropped to 8.6 million barrels per day, prompting concerns about consumption in the peak U.S. summer driving season. Both benchmarks gained on Wednesday after Iran enacted a law suspending cooperation with the U.N. nuclear watchdog, raising concerns the lingering dispute over the Middle East producer's nuclear program may once again devolve into armed conflict. Additionally, the U.S. and Vietnam reached a trade deal that sets 20 per cent tariffs on many of the Southeast Asian country's exports, giving investors a sense of greater economic stability on international trade which could flow into higher demand for oil. The market will be watching the release of the key U.S. monthly employment report on Thursday to shape expectations around the depth and timing of interest rate cuts by the Federal Reserve in the second half of this year, analysts said. Lower interest rates could spur economic activity, which would in turn boost oil demand. A private payrolls report on Wednesday showed a contraction for the first time in two year though analysts cautioned there is no correlation between it and the government data.
