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Chicago Tribune
08-04-2025
- Business
- Chicago Tribune
As China and the US spar, countries brainstorm over how to cope with the trade war
BANGKOK — U.S. President Donald Trump and China sparred over tariff hikes and other retaliatory moves on Tuesday, as governments elsewhere were brainstorming strategies to cope with the trade war between the global economic giants. China said it will 'fight to the end' and take countermeasures against the United States to safeguard its own interests after President Donald Trump threatened an additional 50% tariff on Chinese imports in retaliation for Beijing's backlash against the 34% tariffs he ordered on his April 2 'Liberation Day.' 'The U.S. threat to escalate tariffs on China is a mistake on top of a mistake and once again exposes the blackmailing nature of the US. China will never accept this,' the Commerce Ministry said in a statement read on state-run broadcaster CCTV. When asked about the possibility of talks between Washington and Beijing, Chinese Foreign Ministry spokesperson Lin Jian said 'I think what the US has done doesn't reflect a willingness for sincere dialogue. If the US really wants to engage in dialogue, it should adopt an attitude of equality, mutual respect and mutual benefit.' Meanwhile, Chinese state-run companies were told to help support the country's financial markets after they were hit by massive saves of selling on Monday. While world markets calmed somewhat after frenzied selling over two trading sessions that wiped out trillions of dollars worth of wealth, leaders in Asia shifted into damage control mode. Help for Japan's automakers and steel mills Japanese Prime Minister Shigeru Ishiba spoke with Trump late Monday and then convened a task force Tuesday to mitigate damage from the 24% U.S. tariffs imposed on Washington's biggest ally in Asia. Economic Revitalization Minister Ryosei Akazawa was appointed lead trade negotiator and senior officials were dispatched to Washington to follow up on the Ishiba's talk with Trump. Ishiba told his ministers to do their utmost to get Trump to reconsider and also to mitigate the impact from the U.S. 'reciprocal' tariffs, which he said would be a blow to all industries, Chief Cabinet Secretary Yoshimasa Hayashi told reporters. India wants a deal India's Foreign Minister S. Jaishankar spoke with his U.S. counterpart Marco Rubio late Monday, pitching for an early conclusion of negotiations for a bilateral trade agreement. India, which faces a 26% tariff on its exports to the U.S., is hoping for concessions as part of the trade deal. A first tranche of the agreement is expected by this fall. Washington wants India to allow more open market access for U.S. dairy and other farm products, but New Delhi has balked at that since farming employs the bulk of India's workforce. India's Trade Minister Piyush Goyal planned to meet with exporters Wednesday to gauge the potential impact and cushion the economy from the tariffs. A State Department statement said Rubio and Jaishankar discussed ways to deepen collaboration, the tariffs and 'how to make progress toward a fair and balanced trade relationship.' Malaysia promises 'soft diplomacy' response Malaysian Prime Minister Anwar Ibrahim said his government and other Southeast Asian countries would send officials to Washington to discuss the tariffs and it was working to build a consensus on a unified response among the 10 members of the Association of Southeast Asian Nations as they convened an investment conference in Kuala Lumpur. 'We do not believe in megaphone diplomacy,' Anwar said, 'As part of our soft diplomacy of quiet engagement, we will be dispatching together with our colleagues in ASEAN our officials in Washington to begin the process of dialogue.' Still, he chided the U.S., saying Malaysia's trade with the U.S. had long been a model of mutual gain, with its exports supporting Malaysia's growth as well as high-quality jobs for Americans. The 24% tariff recently imposed on Malaysian imports was 'harming all' and might have negative impact on both economies, he said. Anwar said Malaysia would stick to a policy of diversifying its trade at a time of uncertainty over globalization and changing supply chains. Hong Kong vows more, not less, open trade In Hong Kong, which has a free-trade policy and operates as a free port with few trade barriers, Chief Executive John Lee echoed Beijing in blasting Trump's tariffs as 'bullying' and 'ruthless behavior' he said had damaged trade and raised global uncertainty. Lee said the former British colony, which came under Beijing's control in 1997 but has limited autonomy, would draw closer to the Chinese mainland, sign more free trade agreements and strive to attract more foreign investment to help blunt the impact of the higher U.S. duties.
Globe and Mail
03-04-2025
- Business
- Globe and Mail
Stock market today: Trump's tariff hikes pull Asian shares, US futures sharply lower
BANGKOK (AP) — Asian markets and U.S. futures tumbled Thursday following U.S. President Donald Trump 's announcement of big increases in tariffs on imports of goods from around the world. The double-digit tariff hikes sent shivers across world markets, as economists warned it sharply raises the risk of recession. The future for the S&P 500 dropped 2.9% while that for the Dow Jones Industrial Average lost 2.2%, auguring potential losses when U.S. markets reopen on Thursday. In Asian trading, Tokyo's Nikkei 225 index dipped 4% briefly, with automakers and banks taking big hits. Shortly before the market closed it was down 3.4% at 34,498.31. Mitsubishi UFJ Financial Group's shares plunged 8.3% as the potential impact of the 24% tariffs on the export-dependent Japanese economy dashed expectations that the central bank will keep raising interest rates. Mizuho Financial Group skidded 9.2%. Sony Corp.'s stocks sank 5.6% and Toyota Motor Corp. gave up 6.3%. Japan's yen gained , with the U.S. dollar falling to 147.04 Japanese yen from 149.28 yen. The euro rose to $1.0949 from $1.0855. In South Korea, which was hit with a 25% tariff, the benchmark Kospi fell 1.1% to 2,478.49. Hong Kong's Hang Seng lost 1.9% to 22,776.00, while the Shanghai Composite index edged less 0.2% lower, to 3,342.39. The announcement came as a 'major shock,' Yeap Junrong of IG said in a commentary. 'China, in particular, was hit with an additional 34% tariff, bringing its total tariff burden to 64% when accounting for previous measures.' However, losses were partly blunted by expectations of further economic stimulus from Beijing to offset the impact of the higher tariffs. In Australia, the S&P/ASX 200 fell 0.9% to 7,859.70. Bangkok's SET shed 1% after Thailand was assigned at 36% tariff on its exports to the U.S. That could cause Thai exports to fall by $7 billion to $8 billion, or about 2.3% of the total, Kasem Prunratanamala of CGS International said in a report. On Wednesday, U.S. stocks whipped through another dizzying day before Trump's unveiling of his 'Liberation Day' tariffs. The S&P 500 rose 0.7% to 5,670.97 after careening between an earlier loss of 1.1% and a later gain of 1.1%. It's had a pattern this week of opening with sharp drops only to finish the day higher. The Dow industrials added 0.6% to 42,225.32, and the Nasdaq composite climbed 0.9% to 17,601.05. Financial markets around the world have broadly been shaky lately because of uncertainty about Trump's trade war. He has said he wants tariffs to make the global system more fair and to bring manufacturing jobs back to the United States from other countries. But tariffs also threaten to grind down growth for the U.S. and other economies, while worsening inflation when it may be stuck above the Federal Reserve's 2% target. After the U.S. market closed, Trump declared a 10% baseline tax on imports from all countries and higher tariff rates on dozens of nations that run trade surpluses with the United States. The president held up a chart while speaking at the White House, showing the United States would charge a 34% tax on imports from China, a 20% tax on imports from the European Union, and 32% on Taiwan. Trump earlier announced 25% tariffs on auto imports; levies against China, Canada and Mexico; and expanded tariffs on steel and aluminum. Trump has also put tariffs against countries that import oil from Venezuela and plans separate import taxes on pharmaceutical drugs, lumber, copper and computer chips. Treasury yields swung in the bond market, echoing the indecision seen in the stock market. The yield on the 10-year Treasury fell as low as 4.11% in the morning from 4.17% late Tuesday and from roughly 4.80% early this year. But it later rose to 4.18%. Higher yields can indicate higher expectations for the economy or for inflation.
The Hill
03-04-2025
- Business
- The Hill
Stock market today: Trump's tariff hikes pull Asian shares, US futures sharply lower
BANGKOK (AP) — Asian markets and U.S. futures tumbled Thursday following U.S. President Donald Trump 's announcement of big increases in tariffs on imports of goods from around the world. The double-digit tariff hikes sent shivers across world markets, as economists warned it sharply raises the risk of recession. The future for the S&P 500 dropped 2.9% while that for the Dow Jones Industrial Average lost 2.2%, auguring potential losses when U.S. markets reopen on Thursday. In Asian trading, Tokyo's Nikkei 225 index dipped 4% briefly, with automakers and banks taking big hits. Shortly before the market closed it was down 3.4% at 34,498.31. Mitsubishi UFJ Financial Group's shares plunged 8.3% as the potential impact of the 24% tariffs on the export-dependent Japanese economy dashed expectations that the central bank will keep raising interest rates. Mizuho Financial Group skidded 9.2%. Sony Corp.'s stocks sank 5.6% and Toyota Motor Corp. gave up 6.3%. Japan's yen gained , with the U.S. dollar falling to 147.04 Japanese yen from 149.28 yen. The euro rose to $1.0949 from $1.0855. In South Korea, which was hit with a 25% tariff, the benchmark Kospi fell 1.1% to 2,478.49. Hong Kong's Hang Seng lost 1.9% to 22,776.00, while the Shanghai Composite index edged less 0.2% lower, to 3,342.39. The announcement came as a 'major shock,' Yeap Junrong of IG said in a commentary. 'China, in particular, was hit with an additional 34% tariff, bringing its total tariff burden to 64% when accounting for previous measures.' However, losses were partly blunted by expectations of further economic stimulus from Beijing to offset the impact of the higher tariffs. In Australia, the S&P/ASX 200 fell 0.9% to 7,859.70. Bangkok's SET shed 1% after Thailand was assigned at 36% tariff on its exports to the U.S. That could cause Thai exports to fall by $7 billion to $8 billion, or about 2.3% of the total, Kasem Prunratanamala of CGS International said in a report. On Wednesday, U.S. stocks whipped through another dizzying day before Trump's unveiling of his 'Liberation Day' tariffs. The S&P 500 rose 0.7% to 5,670.97 after careening between an earlier loss of 1.1% and a later gain of 1.1%. It's had a pattern this week of opening with sharp drops only to finish the day higher. The Dow industrials added 0.6% to 42,225.32, and the Nasdaq composite climbed 0.9% to 17,601.05. Financial markets around the world have broadly been shaky lately because of uncertainty about Trump's trade war. He has said he wants tariffs to make the global system more fair and to bring manufacturing jobs back to the United States from other countries. But tariffs also threaten to grind down growth for the U.S. and other economies, while worsening inflation when it may be stuck above the Federal Reserve's 2% target. After the U.S. market closed, Trump declared a 10% baseline tax on imports from all countries and higher tariff rates on dozens of nations that run trade surpluses with the United States. The president held up a chart while speaking at the White House, showing the United States would charge a 34% tax on imports from China, a 20% tax on imports from the European Union, and 32% on Taiwan. Trump earlier announced 25% tariffs on auto imports; levies against China, Canada and Mexico; and expanded tariffs on steel and aluminum. Trump has also put tariffs against countries that import oil from Venezuela and plans separate import taxes on pharmaceutical drugs, lumber, copper and computer chips. Treasury yields swung in the bond market, echoing the indecision seen in the stock market. The yield on the 10-year Treasury fell as low as 4.11% in the morning from 4.17% late Tuesday and from roughly 4.80% early this year. But it later rose to 4.18%. Higher yields can indicate higher expectations for the economy or for inflation.
Reuters
02-04-2025
- Politics
- Reuters
Myanmar's deadly earthquake brings diplomatic payoff for junta chief
BANGKOK, April 2 (Reuters) - Myanmar's deadliest natural disaster in years has strengthened the position of ruling general Min Aung Hlaing, by opening diplomatic channels closed for four years after his junta ousted an elected government to unleash a brutal civil war. Just before Friday's quake of magnitude 7.7 killed more than 2,700, the junta chief was readying for a rare foreign visit to a regional summit in Thailand, as aides worked the phones to arrange meetings with other leaders. It is still unclear, opens new tab if Min Aung Hlaing will attend the BISTRE grouping's summit in Bangkok this week, but the disaster has helped end his isolation by most world leaders over a war that displaced 3.5 million and decimated the economy. "The junta knows that regional powers jostling for influence in Myanmar, like India, China, and Russia would want to use this opportunity to strengthen their own toehold in the country," said Angshuman Choudhury, an analyst based in Singapore. "By publicly and directly engaging with regional capitals, it can demonstrate its supposed indispensability as Myanmar's primary public authority." A junta spokesman did not respond to telephone calls from Reuters to seek comment. In the past week, Min Aung Hlaing has spoken with Chinese President Xi Jinping, Indian Prime Minister Narendra Modi and Malaysian Prime Minister Anwar Ibrahim - conversations that have led to a flurry of international aid. Just weeks after the junta reaffirmed plans for a general election in December, one of the impoverished nation's strongest earthquakes in a century has opened a new window for its leader to engage with regional powers. The junta had steadily lost ground in the conflict sparked by the 2021 coup, suffering a string of battlefield defeats and piling unprecedented pressure on Min Aung Hlaing himself. Key allies such as China have backstopped the junta, with efforts such as pushing major anti-junta groups to stop fighting, but even Beijing had not entirely embraced the embattled general. He did not get an audience with Xi when he visited China in November for the first time since the coup, for example. But during a state visit to Moscow last month, Min Aung Hlaing held court with Russian leader Vladimir Putin, one of his earliest backers after the coup. "I would think he's getting like everything he ever dreamt of and more right now," said a diplomatic source in the commercial capital of Yangon, referring to the Moscow visit, the telephone call with Modi and a meeting of the ASEAN grouping. "He's back in the circle. He has a seat at the table." However, the junta is doing what it can to benefit from the crisis and deny assistance to civilians and opposition groups, said a second diplomatic source in the country. Millions of dollars in aid, relief supplies and hundreds of rescue workers from countries such as China, India, Russia and Southeast Asia, have flooded Myanmar since the quake, though the junta keeps up military operations despite ceasefire calls. The junta could exploit the crisis to strengthen its position in Myanmar's battlefield, Choudhury added. "The quake will complicate the resistance's fight and its ability to retain support from the local population." TIGHTROPE WALK Some regime hardliners believe the junta can continue with the help of a handful of allies, said Sihasak Phuangketkeow, a former Thai vice minister for foreign affairs who visited Myanmar last month. "They see the world order as shifting, and that there is a new pole with China, Russia and India," Sihasak told Reuters. "They think Myanmar may be able to thrive without other engagement." If Min Aung Hlaing were to attend this week's BIMSTEC summit, he would get a further opportunity for diplomatic validation, such as more engagement with India and Thailand. BIMSTEC, or the Bay of Bengal initiative for Multi-Sectoral Technical and Economic Cooperation, comprises Thailand, Myanmar, India, Bangladesh, Nepal, Sri Lanka and Bhutan. "What I got from my recent trip was that Min Aung Hlaing doesn't want to be just under China only," said Sihasak. "It is about how we can assert our own position. We should not let this opportunity to engage Myanmar slip by." In Bangkok, the junta chief could meet Modi, who has rushed aid and personnel to Myanmar since the quake, said three sources with knowledge of discussions. "Modi, particularly, has already indicated that he is willing to directly engage," said Choudhury, referring to the two leaders' call. The visit may also give Min Aung Hlaing a chance to meet Thaksin Shinawatra, the former Thai prime minister whom Malaysia's Anwar appointed a personal adviser in his capacity as chairman of ASEAN. Some analysts say Thailand is walking a tightrope by giving legitimacy to Min Aung Hlaing as he battles the armed resistance which has eroded his grip on Myanmar. "There's a nasty, brutal, violent civil war," said Thitinan Pongsudhirak, a political scientist at Chulalongkorn University. "Thailand has to be very careful because it has a long border with Myanmar and lots at stake."
Arab News
28-03-2025
- Business
- Arab News
Myanmar rebels disrupt China rare earth trade, sparking regional scramble
BANGKOK: When armed rebels seized northern Myanmar's rare-earths mining belt in October, they dealt a blow to the country's embattled military junta — and wrested control of a key global resource. By capturing sites that produce roughly half of the world's heavy rare earths, the Kachin Independence Army (KIA) rebels have been able to throttle the supply of minerals used in wind turbines and electric vehicles, sending prices of one key element skyward. The KIA is seeking leverage against neighboring China, which supports the junta and has invested heavily in rare earths mining in Myanmar's Kachin state, according to two people familiar with the matter. Chinese imports of rare earth oxides and compounds from Myanmar dropped to 311 metric tons in February, down 89 percent compared to the year-ago period, according to Chinese customs data that hasn't been previously reported. Most of the fall came after October. Reuters spoke to nine people with knowledge of Myanmar's rare earths industry and its four-year civil war about turmoil in the mining belt. One of them described the move by the KIA, which is part of a patchwork of armed groups fighting military rule, as an attempt to drive a wedge between the junta and China. 'They want to use rare earth reserves as a leverage in their negotiation with China,' said Dan Seng Lawn, executive director of the non-profit Kachinland Research Center, which studies Kachin socio-political issues. Three of the people also detailed previously unreported interest in the sector by India, China's regional rival, which they said in late 2024 sent officials from a state-owned rare earths mining and refining firm to Kachin. The KIA is one of the largest and oldest ethnic militias in Myanmar. It fights for the autonomy of the Kachin minority, a mostly Christian group who have long held grievances against the Bamar Buddhist majority. The group has imposed a hefty tax on the mostly Chinese-operated rare-earth miners working around Panwa and Chipwe towns in Kachin, according Dan Seng Lawn, whose institute is based in the state, and a Chinese mining analyst. China has been one of the staunchest international backers of Myanmar's military since it deposed a civilian-led government in 2021 and ignited a bloody civil war. Beijing continues to see the junta as a guarantor of stability along its frontier, though the military has been ejected from most of the borderlands since a major rebel offensive in 2023. A spokesperson for China's Foreign Ministry said the department was not aware of the specifics of the situation in the mining belt but it continues to 'actively promote peace talks and provide all possible support and assistance for the peace process in northern Myanmar.' India's external affairs ministry, the KIA and a junta spokesperson did not return requests for comment. Bawn Myang Co. Ltd, which the US government previously identified as an operator of mines in the area, couldn't be reached. PRICE SPIKE Chinese spot prices of terbium oxide , whose supply is concentrated in Kachin, jumped 21.9 percent to 6,550 yuan per kg between late September and March 24, data from Shanghai Metals Market show. Prices of dysprosium oxide , which is also largely mined in Kachin but was in lower demand over the last six months, eased 3.2 percent to 1,665 yuan per kg during the same period. Most rare earths from Kachin are processed in China, so a protracted stalemate would have global implications. 'A prolonged shutdown would likely lead to higher, potentially more volatile rare earth prices in China, and a reshaping of market dynamics in the near term,' research firm Adamas Intelligence said in a February note. EXPORT PLUNGE Chinese miners started building up major operations in Kachin in the 2010s, after Beijing tightened regulations on domestic mines. Kachin's often unregulated mines steadily expanded after the 2021 coup with the tacit approval of the junta, according to the Global Witness non-profit. But the growth came at a heavy cost, ravaging the environment and leaving Kachin's hills pock-marked with leeching pools, according to witness accounts and satellite imagery. Since the KIA's takeover, a 20 percent tax imposed by the rebels has made it effectively impossible for local operators to run profitable mines. The KIA wants China to stop pushing it to set down arms against the junta and to recognize the rebels' de facto control of the border, said Dan Seng Lawn, adding that the parties had met at least twice in recent months. The KIA has full control of the border in areas where it operates and anti-junta groups rule most of the rest of Myanmar's frontier with China. Beijing appeared reluctant to accept the KIA's demands, though it risked its monopoly on Myanmar's rare earth reserves if it doesn't position itself pragmatically, Dan Seng Lawn said. Reopening the minerals sector would be a major financial lifeline to the rebels: Myanmar's heavy rare earths trade stood at around $1.4 billion in 2023, according to Global Witness. The KIA has told miners in Kachin it will now allow shipments of existing rare earth inventories to China, Reuters reported Thursday. But to resume operations at full capacity, the KIA needs an agreement with China, home to thousands of workers with the know-how, said Singapore-based rare-earths expert Thomas Kruemmer. 'Without them, this won't work, full stop,' he said. India alternative? Amid the ongoing tussle, India has attempted to deepen its influence in Kachin, with which it also shares a border, according to Dan Seng Lawn and two people familiar with Indian official thinking. India's state-run mining and refining firm IREL in December sent a team to Kachin to study resources there, according to one of the Indian sources, who spoke on condition of anonymity due to the sensitivity of the matter. Indian authorities have reservations about operating in an area with armed non-state actors, but the Kachin desire to diversify away from China and New Delhi's need for resources have pushed the two parties to talk, the Indian source said. IREL did not return requests for comment. An Indian delegation that included IREL also held an online meeting with the Kachins in December to discuss their interest in reopening the rare-earths sector, said Dan Seng Lawn, who attended the discussion. They were willing to pay higher prices than China, he said. Any India deal faces multiple obstacles, said Kruemmer and Dan Seng Lawn. There is only skeletal infrastructure along the mountainous and sparsely populated Kachin-India frontier, making it challenging for commodities to be moved from Myanmar to the neighboring northeastern states of India. Those states are also far removed from India's manufacturing belts in the south and west. India also doesn't have the ability to commercially process the heavy rare earths and transform them into magnets used by industry, according to Kruemmer and the Indian source. Some 90 percent of the world's rare earths magnets are produced in China, which has brought the sector under tighter state control, followed by Japan. Nevertheless, if Beijing does not recognize the 'changing power dynamics,' Dan Seng Lawn said, the KIA 'will have to open alternative options.'
