Latest news with #ChantawitTantasith
Yahoo
4 hours ago
- Business
- Yahoo
Trump's 40% Penalty for Tariff Dodging Missing Key Details
(Bloomberg) -- President Donald Trump has threatened to pile an additional 40% tariff on any product that Washington determines to be 'transshipped' through another country, a punishment aimed at stopping goods mainly from China dodging US duties. The World's Data Center Capital Has Residents Surrounded An Abandoned Art-Deco Landmark in Buffalo Awaits Revival We Should All Be Biking Along the Beach Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus That penalty was included in the White House announcement Thursday evening that laid out global tariff rates from 10% to 41%. But many countries are still missing the 'rules of origin' details necessary to determine what the US considers transshipped. 'It is still not clear how this will be implemented in practice,' Leah Fahy, chief economist at Capital Economics, said in a note Friday. A decision on those rules will be made in the coming weeks, a senior US official said in Washington on Thursday. The US had earlier said the issue would be resolved before Aug. 1. The details are particularly important for countries in Southeast Asia, such as Vietnam, which have emerged as key suppliers of goods to the US. Many of the firms and factories had shifted from China in response to Trump's first trade war with Beijing and most still rely on Chinese inputs for production. Thailand's Deputy Minister of Commerce Chantawit Tantasith, for instance, said the country's 19% tariff rate allows it to maintain a competitive edge, as it's on par with Malaysia, Indonesia, Cambodia and the Philippines, and below Vietnam's 20%. However, the transshipment issue is still unresolved. 'We must await further clarification from the US regarding the negotiation process and rules of origin,' Chantawit said Friday in a statement. The country's Finance Minister Pichai Chunhavajira said in a separate statement that local content should be more than 40% to be classified as a Thai product, but that the country hasn't reached an agreement with the US on those details. While it didn't provide specifics, the White House release Thursday said the US would publish every six months a list of countries and 'specific facilities used in circumvention schemes' to help public procurement, commercial due diligence and national security reviews. The unspoken target of the rule has been China, which Trump has blamed for abusing free-trade rules to hollow out American manufacturing and jobs with cheaper imports. Trump is set to make the final call on maintaining a tariff truce with China before it expires in two weeks. Stephen Olson, a former US trade negotiator now with the ISEAS-Yusof Ishak Institute in Singapore, sees the transshipment issue complicating those talks. 'China will correctly perceive the transshipment provisions as directed against its interests,' Olson said. 'And it will inevitably spill over into its ongoing trade negotiations with the US.' Beijing called out the issue on social media, highlighting the 'very significant' impact it might have on Vietnam. 'The current US restrictions on 'transshipment' will make foreign companies hesitant to continue investing, affecting the layout of industrial parks and foreign investment in Vietnam,' said Yuyuan Tantian, an account affiliated with China's state broadcaster that's frequently used to signal Beijing's thinking on trade issues. Some analysts expect the punitive tariff to have little impact on China or the ability of its manufacturers to get goods to American buyers — directly or indirectly. 'Enforcement is likely to be challenging,' Fahy wrote. 'Even if outright rerouting is reduced, trade diversion will continue to dampen the impact of US tariffs on China's aggregate export performance.' --With assistance from Jasmine Ng, Jenni Marsh, Josh Xiao and Claire Jiao. (Updates with detail from executive order in 10th paragraph.) Burning Man Is Burning Through Cash Russia Builds a New Web Around Kremlin's Handpicked Super App Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Free Malaysia Today
6 hours ago
- Business
- Free Malaysia Today
Trump's 40% penalty for tariff dodging still missing key details
Many of the firms and factories had shifted from China in response to US President Donald Trump's first trade war with Beijing. (AP pic) WASHINGTON : President Donald Trump has threatened to pile an additional 40% tariff on any product that Washington determines to be 'transshipped' through another country, a punishment aimed at stopping goods mainly from China, dodging US duties. That penalty was included in the White House announcement yesterday evening that laid out global tariff rates from 10% to 41%. However, many countries are still missing the 'rules of origin' details necessary to determine what the US considers transshipped. 'It is still not clear how this will be implemented in practice,' Leah Fahy, chief economist at Capital Economics, said in a note Friday. A decision on those rules will be made in the coming weeks, a senior US official said in Washington yesterday. The US had earlier said the issue would be resolved before Aug 1. The details are particularly important for countries in Southeast Asia, such as Vietnam, which have emerged as key suppliers of goods to the US. Many of the firms and factories had shifted from China in response to Trump's first trade war with Beijing and most still rely on Chinese inputs for production. Thailand's deputy minister of commerce Chantawit Tantasith, for instance, said the country's 19% tariff rate allows it to maintain a competitive edge, as it's on par with Malaysia, Indonesia, Cambodia and the Philippines, and below Vietnam's 20%. However, the transshipment issue is still unresolved. 'We must await further clarification from the US regarding the negotiation process and rules of origin,' Chantawit said today in a statement. The country's finance minister Pichai Chunhavajira said in a separate statement that local content should be more than 40% to be classified as a Thai product, but that the country hasn't reached an agreement with the US on those details. The unspoken target of the rule has been China, which Trump has blamed for abusing free-trade rules to hollow out American manufacturing and jobs with cheaper imports. Trump is set to make the final call on maintaining a tariff truce with China before it expires in two weeks. Stephen Olson, a former US trade negotiator now with the ISEAS-Yusof Ishak Institute in Singapore, sees the transshipment issue complicating those talks. 'China will correctly perceive the transshipment provisions as directed against its interests,' Olson said. 'And it will inevitably spill over into its ongoing trade negotiations with the US,' he said. Some analysts expect the punitive tariff to have little impact on China or the ability of its manufacturers to get goods to American buyers – directly or indirectly. 'Enforcement is likely to be challenging. 'Even if outright rerouting is reduced, trade diversion will continue to dampen the impact of US tariffs on China's aggregate export performance,' Fahy wrote.
Yahoo
6 hours ago
- Business
- Yahoo
Trump's 40% Penalty for Tariff Dodging Still Missing Key Details
(Bloomberg) — President Donald Trump has threatened to pile an additional 40% tariff on any product that Washington determines to be 'transshipped' through another country, a punishment aimed at stopping goods mainly from China dodging US duties. The World's Data Center Capital Has Residents Surrounded An Abandoned Art-Deco Landmark in Buffalo Awaits Revival We Should All Be Biking Along the Beach Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus That penalty was included in the White House announcement Thursday evening that laid out global tariff rates from 10% to 41%. But many countries are still missing the 'rules of origin' details necessary to determine what the US considers transshipped. 'It is still not clear how this will be implemented in practice,' Leah Fahy, chief economist at Capital Economics, said in a note Friday. A decision on those rules will be made in the coming weeks, a senior US official said in Washington on Thursday. The US had earlier said the issue would be resolved before Aug. 1. The details are particularly important for countries in Southeast Asia, such as Vietnam, which have emerged as key suppliers of goods to the US. Many of the firms and factories had shifted from China in response to Trump's first trade war with Beijing and most still rely on Chinese inputs for production. Thailand's Deputy Minister of Commerce Chantawit Tantasith, for instance, said the country's 19% tariff rate allows it to maintain a competitive edge, as it's on par with Malaysia, Indonesia, Cambodia and the Philippines, and below Vietnam's 20%. However, the transshipment issue is still unresolved. 'We must await further clarification from the US regarding the negotiation process and rules of origin,' Chantawit said Friday in a statement. The country's Finance Minister Pichai Chunhavajira said in a separate statement that local content should be more than 40% to be classified as a Thai product, but that the country hasn't reached an agreement with the US on those details. The unspoken target of the rule has been China, which Trump has blamed for abusing free-trade rules to hollow out American manufacturing and jobs with cheaper imports. Trump is set to make the final call on maintaining a tariff truce with China before it expires in two weeks. Stephen Olson, a former US trade negotiator now with the ISEAS-Yusof Ishak Institute in Singapore, sees the transshipment issue complicating those talks. 'China will correctly perceive the transshipment provisions as directed against its interests,' Olson said. 'And it will inevitably spill over into its ongoing trade negotiations with the US.' Some analysts expect the punitive tariff to have little impact on China or the ability of its manufacturers to get goods to American buyers — directly or indirectly. 'Enforcement is likely to be challenging,' Fahy wrote. 'Even if outright rerouting is reduced, trade diversion will continue to dampen the impact of US tariffs on China's aggregate export performance.' —With assistance from Jasmine Ng. Burning Man Is Burning Through Cash Russia Builds a New Web Around Kremlin's Handpicked Super App Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts ©2025 Bloomberg L.P.
Bangkok Post
22-07-2025
- Business
- Bangkok Post
Thai minister woos US businesses in New York
Thailand's deputy commerce minister has invited large American corporations to invest in targeted industries in Thailand. Chantawit Tantasith led a delegation from the ministry in a roundtable discussion held recently in New York City with the US-Asean Business Council and the Business Council for International Understanding. They exchanged insights and fostered collaboration between American businesses and the Thai government, with a focus on boosting investment in targeted industries. Mr Chantawit said Thailand values its economic partnership with the US. The ministry emphasised Thailand's readiness to facilitate US companies' investment in the targeted industries. These sectors include electric vehicles, agriculture and future food, medical equipment, clean energy, advanced electronics and digital industry, all of which align with the United States' potential. He said such investments would enhance opportunities for Thai micro, small and medium enterprises, allowing them to better integrate into the global supply chain. 'The discussions were productive and the American companies recognise the investment potential in Thailand,' he said. Executives from four large US companies in the information technology, financial services and health and life sciences sectors attended the meeting. Mr Chantawit said foreign companies want predictability in the government's rules and regulations, and they inquired about the details related to their businesses. From now on, he said, Thailand's commercial attaches will actively promote relevant regulations to foreign investors to ensure that Thailand welcomes their investments. Meanwhile, Thailand needs to review and update existing regulations to better align with the current situation, he noted. Regarding the tariff negotiations with the US, Mr Chantawit said they had shown progress and would likely yield clarity in the foreseeable future. During the US trip, Mr Chantawit and a delegation from the Ministry of Commerce also had discussions with Nipa Kim, senior global sourcing manager of Clark Associates Inc in New York on Sunday.
