Latest news with #Japan
Yahoo
20 minutes ago
- Business
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Flurry of trade deals offers relief for some Asian countries, while others wait
BANGKOK (AP) — U.S. President Donald Trump has announced trade deals with Japan and a handful of other Asian countries that will relieve some pressure on companies and consumers from sharply higher tariffs on their exports to the United States. 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. Elaine Kurtenbach, The Associated Press
Yahoo
20 minutes ago
- Business
- Yahoo
FTSE 100 LIVE: Stocks surge as Trump strikes trade deals with Japan, the Philippines and Indonesia
This embedded content is not available in your region. The FTSE 100 (^FTSE) and European stocks soared higher on Wednesday as traders cheered news that US president Donald Trump has agreed to a "massive" trade deal with Japan, one of the country's largest trading partners. Posting on his social media site Truth Social, Trump said: "We just completed a massive Deal with Japan, perhaps the largest Deal ever made. Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits. This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it. "Perhaps most importantly, Japan will open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things." Japan's prime minister Shigeru Ishiba welcomed the announcement on Wednesday, adding that he expects the agreement to contribute to the world economy. "Japan's tariff rate, which had been set to increase to 25% on reciprocal tariffs, was kept at 15%. This is the lowest figure to date among countries with trade surpluses with the US," he said. Stocks: Create your watchlist and portfolio "The agreement does not include any reduction of tariffs on the Japanese side, including on agricultural products." "This is precisely the result of my consistent advocacy and strong lobbying of the US since I proposed 'investment over tariffs' to president Trump at our White House summit in February this year." Separately, Trump also announced that the US would levy a 19% tax on imports from the Philippines. He wrote on social media that the new tariff was part of a wider pact, in which the Philippines would remove duties on US goods and the two countries would cooperate militarily. "It was a beautiful visit, and we concluded our Trade Deal," Trump wrote on Truth Social, offering no further details about the apparent agreement. Meanwhile, Indonesia is set to pay a 19% tariff rate. Trump posted: "It is agreed that Indonesia will be Open Market to American Industrial and Tech Products, and Agricultural Goods, by eliminating 99% of their Tariff Barriers. "The United States of America will now sell American Made products to Indonesia at a Tariff Rate of ZERO, while Indonesia will pay 19% on all of their products coming into the U.S.A." London's benchmark index (^FTSE) was 0.4% higher in early trade - a fresh intraday high. Germany's DAX (^GDAXI) rose 0.7% and the CAC (^FCHI) in Paris headed 1.4% into the green. The pan-European STOXX 600 (^STOXX) was up 0.9% amid raised hopes that the EU might also be able to reach a trade deal with the US. Wall Street is set for a positive start as S&P 500 futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NQ=F) were all in the green. The pound was 0.2% up against the US dollar (GBPUSD=X) at 1.3548. Follow along for live updates throughout the day: Indonesia to pay 19% tariff rate And the tariff news doesn't stop there... It has been announced that Indonesia is set to pay a 19% tariff rate. Trump posted: US also strikes trade deal with the Philippines Separately, Trump also announced that the US would levy a 19% tax on imports from the Philippines. He wrote on social media that the new tariff was part of a wider pact, in which the Philippines would remove duties on US goods and the two countries would cooperate militarily. "It was a beautiful visit, and we concluded our Trade Deal," Trump wrote on Truth Social, offering no further details about the apparent agreement. Compared to Japan, the Philippines is a relatively small trade partner with the US. Last year it sent around $14.2bn worth of goods to America, including car parts, electric machinery, textiles and coconut oil. Japan welcomes US trade deal Japanese prime minister Shigeru Ishiba welcomed the US-Japan trade deal on Wednesday. He said: It comes as Japan was the fourth largest single-country export market for US agriculture and related products in 2022, valued at nearly $17bn (£12.5bn). This is according to a report from the International Trade Administration. The US was the country's largest supplier of food and agricultural products, followed by the EU, China, Australia, and Thailand. Japan was also the biggest export market for US beef and pork, valued at roughly $5bn combined, and the second largest market for US corn, valued at $3.3bn. Asia and US overnight Stocks in Asia were higher overnight, with the Nikkei (^N225) surging 3.7% to a one-year high in Japan as the country struck a trade deal with the United States that lowers tariffs on its cars. US president Donald Trump said on Tuesday that a trade deal with Tokyo will include Japan paying a lower-than-threatened 15% tariff on shipments to the US. It also comes after an agreement with the Philippines that will see the US collect a 19% tariff rate on imports from there. Trump added that said representatives from the European Union were coming for trade negotiations on Wednesday, even as the EU was reportedly refining countermeasures in case of a deadlock before the 1 August deadline. Shares of carmakers surged on the back of the news with Mazda Motor (7261.T) rallying 17% and Toyota (7203.T) jumping more than 14%. Meanwhile the Hang Seng (^HSI) rose 1.3% in Hong Kong and the Shanghai Composite ( was 0.3% up by the end of the session. In South Korea, the Kospi (^KS11) added 0.4% on the day, with carmakers in the country also rising as the Japan deal fuelled optimism over potential progress in tariff negotiations between South Korea and the US. Across the pond on Wall Street, stocks inched to another record following some mixed profit reports. The S&P 500 (^GSPC) rose 0.1% to the all-time high it had set the day before, closing at 6,309.62, and the tech-heavy Nasdaq (^IXIC) slipped 0.4% from its own record, to 20,892.68. The Dow Jones (^DJI) gained 0.4% to end at 44,502.44. Coming up Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets and happening across the global economy. To the day ahead we have data releases including US existing home sales for June, and the Euro Area's preliminary consumer confidence reading for July. Otherwise, earnings releases include Alphabet (GOOG) and Tesla (TSLA). Here's a snapshot of what's on the agenda: 7am: Trading updates: Kier, Compass Group, Mitie, Greencore, Marstons, ME Group 7am: UK Public Sector Net Borrowing 9.30am: Supreme Court to rule on appeal against LIBOR and EURIBOR convictions of Tom Hayes and Carlo Palombo 12pm: US weekly mortgage approvals data 3pm: US new home salesIndonesia to pay 19% tariff rate And the tariff news doesn't stop there... It has been announced that Indonesia is set to pay a 19% tariff rate. Trump posted: And the tariff news doesn't stop there... It has been announced that Indonesia is set to pay a 19% tariff rate. Trump posted: US also strikes trade deal with the Philippines Separately, Trump also announced that the US would levy a 19% tax on imports from the Philippines. He wrote on social media that the new tariff was part of a wider pact, in which the Philippines would remove duties on US goods and the two countries would cooperate militarily. "It was a beautiful visit, and we concluded our Trade Deal," Trump wrote on Truth Social, offering no further details about the apparent agreement. Compared to Japan, the Philippines is a relatively small trade partner with the US. Last year it sent around $14.2bn worth of goods to America, including car parts, electric machinery, textiles and coconut oil. Separately, Trump also announced that the US would levy a 19% tax on imports from the Philippines. He wrote on social media that the new tariff was part of a wider pact, in which the Philippines would remove duties on US goods and the two countries would cooperate militarily. "It was a beautiful visit, and we concluded our Trade Deal," Trump wrote on Truth Social, offering no further details about the apparent agreement. Compared to Japan, the Philippines is a relatively small trade partner with the US. Last year it sent around $14.2bn worth of goods to America, including car parts, electric machinery, textiles and coconut oil. Japan welcomes US trade deal Japanese prime minister Shigeru Ishiba welcomed the US-Japan trade deal on Wednesday. He said: It comes as Japan was the fourth largest single-country export market for US agriculture and related products in 2022, valued at nearly $17bn (£12.5bn). This is according to a report from the International Trade Administration. The US was the country's largest supplier of food and agricultural products, followed by the EU, China, Australia, and Thailand. Japan was also the biggest export market for US beef and pork, valued at roughly $5bn combined, and the second largest market for US corn, valued at $3.3bn. Japanese prime minister Shigeru Ishiba welcomed the US-Japan trade deal on Wednesday. He said: It comes as Japan was the fourth largest single-country export market for US agriculture and related products in 2022, valued at nearly $17bn (£12.5bn). This is according to a report from the International Trade Administration. The US was the country's largest supplier of food and agricultural products, followed by the EU, China, Australia, and Thailand. Japan was also the biggest export market for US beef and pork, valued at roughly $5bn combined, and the second largest market for US corn, valued at $3.3bn. Asia and US overnight Stocks in Asia were higher overnight, with the Nikkei (^N225) surging 3.7% to a one-year high in Japan as the country struck a trade deal with the United States that lowers tariffs on its cars. US president Donald Trump said on Tuesday that a trade deal with Tokyo will include Japan paying a lower-than-threatened 15% tariff on shipments to the US. It also comes after an agreement with the Philippines that will see the US collect a 19% tariff rate on imports from there. Trump added that said representatives from the European Union were coming for trade negotiations on Wednesday, even as the EU was reportedly refining countermeasures in case of a deadlock before the 1 August deadline. Shares of carmakers surged on the back of the news with Mazda Motor (7261.T) rallying 17% and Toyota (7203.T) jumping more than 14%. Meanwhile the Hang Seng (^HSI) rose 1.3% in Hong Kong and the Shanghai Composite ( was 0.3% up by the end of the session. In South Korea, the Kospi (^KS11) added 0.4% on the day, with carmakers in the country also rising as the Japan deal fuelled optimism over potential progress in tariff negotiations between South Korea and the US. Across the pond on Wall Street, stocks inched to another record following some mixed profit reports. The S&P 500 (^GSPC) rose 0.1% to the all-time high it had set the day before, closing at 6,309.62, and the tech-heavy Nasdaq (^IXIC) slipped 0.4% from its own record, to 20,892.68. The Dow Jones (^DJI) gained 0.4% to end at 44,502.44. Stocks in Asia were higher overnight, with the Nikkei (^N225) surging 3.7% to a one-year high in Japan as the country struck a trade deal with the United States that lowers tariffs on its cars. US president Donald Trump said on Tuesday that a trade deal with Tokyo will include Japan paying a lower-than-threatened 15% tariff on shipments to the US. It also comes after an agreement with the Philippines that will see the US collect a 19% tariff rate on imports from there. Trump added that said representatives from the European Union were coming for trade negotiations on Wednesday, even as the EU was reportedly refining countermeasures in case of a deadlock before the 1 August deadline. Shares of carmakers surged on the back of the news with Mazda Motor (7261.T) rallying 17% and Toyota (7203.T) jumping more than 14%. Meanwhile the Hang Seng (^HSI) rose 1.3% in Hong Kong and the Shanghai Composite ( was 0.3% up by the end of the session. In South Korea, the Kospi (^KS11) added 0.4% on the day, with carmakers in the country also rising as the Japan deal fuelled optimism over potential progress in tariff negotiations between South Korea and the US. Across the pond on Wall Street, stocks inched to another record following some mixed profit reports. The S&P 500 (^GSPC) rose 0.1% to the all-time high it had set the day before, closing at 6,309.62, and the tech-heavy Nasdaq (^IXIC) slipped 0.4% from its own record, to 20,892.68. The Dow Jones (^DJI) gained 0.4% to end at 44,502.44. Coming up Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets and happening across the global economy. To the day ahead we have data releases including US existing home sales for June, and the Euro Area's preliminary consumer confidence reading for July. Otherwise, earnings releases include Alphabet (GOOG) and Tesla (TSLA). Here's a snapshot of what's on the agenda: 7am: Trading updates: Kier, Compass Group, Mitie, Greencore, Marstons, ME Group 7am: UK Public Sector Net Borrowing 9.30am: Supreme Court to rule on appeal against LIBOR and EURIBOR convictions of Tom Hayes and Carlo Palombo 12pm: US weekly mortgage approvals data 3pm: US new home sales Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets and happening across the global economy. To the day ahead we have data releases including US existing home sales for June, and the Euro Area's preliminary consumer confidence reading for July. Otherwise, earnings releases include Alphabet (GOOG) and Tesla (TSLA). Here's a snapshot of what's on the agenda: 7am: Trading updates: Kier, Compass Group, Mitie, Greencore, Marstons, ME Group 7am: UK Public Sector Net Borrowing 9.30am: Supreme Court to rule on appeal against LIBOR and EURIBOR convictions of Tom Hayes and Carlo Palombo 12pm: US weekly mortgage approvals data 3pm: US new home sales 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
Yahoo
20 minutes ago
- Business
- Yahoo
ASX jumps as Trump talks trade deals
Australia's sharemarket jumped in line with the Asian markets, after US President Donald Trump announced a 'massive deal' with Japan. The benchmark ASX 200 gained 60 points or 0.69 per cent to finish trading on Wednesday at 8,737.20, while the broader All Ordinaries climbed 59.90 points or 0.67 per cent to close at 9,001.49. Australia's dollar rose 0.13 per cent and at the time of writing was buying 65.62 US cents. In an agreement between the US and Japan, the US will impose a 15 per cent levy on Japanese imports, down from 25 per cent. Japan in return will invest $US550bn into the United States. Stocks on Japan's Nikkei index rallied and the yen leapt on the news the country was able to sort a trade deal with Mr Trump, including on the critical car manufacturing sector. Last year, cars shipped to the US were around 28 per cent of Japan's 21.3 trillion yen of total exports to the world's largest economy. Global X senior investment strategist Billy Leung said Japanese equities hit a record high on Wednesday on the back of the announcement. 'This isn't just about a one-day rally. Japan is the world's largest robot manufacturing country and its role in global tech supply chains especially in high-precision manufacturing and automation makes it a key beneficiary of both tariff clarity and the broader reconfiguration of US-aligned production,' he said Australia's sharemarket followed with 10 of the 11 sectors gaining, led by the miners, banks and energy sector. The big three iron ore miners all finished in the green, with BHP up 0.9 per cent to $41.85, Rio Tinto gaining 1 per cent to $119.47 and Fortescue gaining 2.3 per cent to $18.21. Woodside Energy shares were up 1.45 per cent to $25.21, Yancoal Australia jumped 2.81 per cent to $6.58 and Whitehaven Coal soared 6.53 per cent to $7.18. On an overall strong day for the financial sector, three of the four major banks gained during Wednesday's trading. Commonwealth Bank shares finished 0.51 per cent higher trading at $173.30, Westpac shares gained 1.41 per cent to $33.11 and ANZ soared 2.52 per cent to $30.57. NAB slipped 0.05 per cent to $37.20. In company news, shares in Telix Pharmaceuticals plunged 15.13 per cent to $21.32 after it told the market it had received a subpoena from the US Securities and Exchange Commission for various documents primarily related to the company's disclosure regarding its prostate cancer therapy. Shares in Australia's top fuel retailer Ampol Limited rallied 3.27 per cent to $27.77 despite telling the market it forecasts weaker half yearly earnings on the back of sea-freight conditions impacting its supply chains. Iluka Resources jumped 4.05 per cent to $5.39 after the global critical minerals business after telling the market it achieved its full-year production guidance for Zircon by June 30. Sign in to access your portfolio
Globe and Mail
21 minutes ago
- Business
- Globe and Mail
Flurry of trade deals offers relief for some Asian countries, while others wait
BANGKOK (AP) — U.S. President Donald Trump has announced trade deals with Japan and a handful of other Asian countries that will relieve some pressure on companies and consumers from sharply higher tariffs on their exports to the United States. 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.
The Independent
21 minutes ago
- Business
- The Independent
Flurry of trade deals offers relief for some Asian countries, while others wait
Donald Trump has announced trade deals with Japan and a handful of other Asian countries that will relieve some pressure on companies and consumers from sharply higher tariffs on their exports to the United States. 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.
