Latest news with #SoutheastAsia
Yahoo
12 minutes ago
- Business
- Yahoo
The Latest: US trade partners around the world react to Trump's new tariffs
U.S. trade partners around the world were reacting on Friday to President Donald Trump 's executive order that would introduce new tariffs on many of them in seven days, as the global economy and alliances face a fresh test from the president's trade agenda. Trump's order was issued Thursday night and came after a flurry of tariff-related activity in recent days, as the White House announced agreements with various nations and blocs ahead of Trump's self-imposed Aug. 1 deadline. Trump also said Thursday he would be extending trade negotiations with Mexico for 90 days. But the vast majority of nations are continuing to face uncertainty ahead of the coming deadline. And while a handful of trade deals have trickled in, many details remain hazy — with businesses and manufacturers around the world bracing for heightened operating costs and potential price hikes regardless. Meanwhile, Trump's overhaul of American trade policy hasn't gone unchallenged. Appellate court judges have expressed broad skepticism around Trump's legal rationale for his most expansive round of tariffs. ___ Here's the latest: Malaysia hails 'significant achievement' in 19% tariff rate Malaysia's Trade Ministry said Friday that the U.S. tariff reduction from 25% to 19% was a 'significant achievement' as the deal was struck without compromising key national interests. 'The 19% rate roughly tracks the rate of other countries in the Southeast Asian region,' the ministry said in a statement. 'Most importantly, Malaysia had stood firm on various 'red line' items, and the 19% tariff rate was achieved without compromising the nation's sovereign right to implement key policies to support the nation's socio-economic stability and growth.' The ministry said that Malaysia's economy remains resilient despite global headwinds, citing strong domestic demand and ongoing structural reforms. The statement didn't give further details but officials previously said non-tariff barriers such as halal certification, which affects U.S. beef and poultry exports, along with digital trade and government procurement were sticky points. It's unclear what concessions Malaysia made. Cambodia will impose zero tariffs on all American goods Cambodia's Deputy Prime Minister Sun Chanthol, who led his nation's trade talks with the U.S., thanked Trump for setting the tariff rate on Cambodian goods at 19% and said his country will impose zero tariffs on all American goods. When Washington originally posted its list of notional 'reciprocal' tariffs, the rate for goods from Cambodia was 49%, one of the highest in the world. It had estimated that Cambodian tariffs on U.S. imports averaged 97%. Sun Chanthol also said Cambodia would purchase 10 passenger aircraft from Boeing in a deal they hoped to sign later this month. Several other nations had already announced similar aircraft purchase deals as part of their trade packages. Trump had threatened to not conclude a deal with reduced tariffs if Cambodia and Thailand did not stop a recent armed conflict over border territory. The two nations agreed on a ceasefire beginning Tuesday that appears to be holding. Cambodia publicly celebrated Trump's peace initiative, suggesting he deserved a Nobel Prize for his intervention. Sun Chanthol said Friday that Cambodia would nominate him for the honor. Australia's 10% tariff rate is vindication of the country's 'cool and calm negotiations,' trade minister says Australian Trade Minister Don Farrell says gaining the minimum U.S. tariff on exports including beef, lamb, wine and wheat gave Australia a competitive advantage over some competitors. Farrell told reporters Australia did not introduce tariffs on U.S. goods at any point, and added, 'I haven't seen any case or any example where the retaliatory imposition of tariffs has resulted in a country being in a better position." Farrell argues that no U.S. tariffs can be justified because Australia imposes no tariffs on its bilateral free trade partner. The United States has enjoyed a trade surplus with Australia for decades. Australian Prime Minister Anthony Albanese has been criticized for failing to secure a face-to-face meeting with Trump to discuss trade. Japan welcomes Trump's signing of the executive order as an ease in uncertainty Japanese Chief Cabinet Secretary Yoshimasa Hayashi welcomed Trump's signing of the executive order setting Japan's new reciprocal tariffs as a step that would reduce uncertainty of the U.S. trade policy and its negative impact on the global economy, including that of Japan. Hayashi, however, said Japan still needs to closely examine the measures and continue urging prompt implementation by the U.S. government to carry out the agreement, including reduction of tariffs on automobiles and auto parts. Hayashi acknowledged that Japan's new tariff rate of 15% is a 'major reduction' from the initially imposed 25%, but his government will continue to watch and mitigate its impact on Japanese exports, including by providing financial assistance for small and medium-sized businesses. New Zealand looks to lobby for lower tariff rates New Zealand officials said they would lobby the administration for a change to the 15% tariff announced for the country's exporters to the U.S. It's an increase from the original 10% baseline announced for New Zealand in April. 'We don't think this is a good thing. We don't think it's warranted,' Trade Minister Todd McClay told Radio New Zealand Friday. He said New Zealand appeared to have been targeted for a larger levy because the country records a trade deficit with the U.S. but that the gap of about half a billion dollars each year was 'not significant or meaningful.' Neighboring Australia dodged an increase to remain at 10%, but it records a trade surplus with the U.S., McClay added. The United States in January overtook Australia to become New Zealand's second-largest export partner, behind China. New Zealand exports are largely made up of meat, dairy, wine and agricultural machinery. Taiwan president says final tariff negotiations with US yet to come Taiwan President Lai Ching-te said Taiwan had yet to engage in final negotiations with the U.S. owing to scheduling difficulties and that he was hopeful the final tariff rate would be reduced even further after a final round of talks. The Trump administration hit Taiwan with 32% tariffs, and lowered it to 20% on Thursday. Taiwan was notified on Thursday by the administration of the lower rate. 'Twenty percent from the beginning has not been our goal. We hope that in further negotiations we will get a more beneficial and more reasonable tax rate,' he told reporters in Taipei on Friday. Lai also linked trade talks to security issues, as the U.S. is Taiwan's largest ally even though it does not formally recognize the island. 'We want to strengthen U.S. Taiwan cooperation in national security, tech, and multiple areas,' he said Friday. The U.S. is Taiwan's most important export market and strategic ally, Lai said in an earlier statement Friday morning. Cambodia prime minister thanks Trump for dropping tariff rate Cambodia Prime Minister Hun Manet expressed his thanks to Trump for the dropping of tariffs from 36% to 19% and he called the reduction 'good news' for Cambodia. Posted on his social media platform, Hun Manet said Trump had not only helped broker a ceasefire between Cambodia and Thailand forces after nearly a weeklong clash but also helped Cambodia's economy by lowering tariffs. 'This is good news for the people and economy of Cambodia to continue developing the country,' Hun Manet said. Thailand successfully negotiates lower tariff rates Thailand's government spokesperson Jirayu Houngsub said Thailand says the U.S. agreed to reduce the tariffs rate from 36% to 19%, a rate similar to those imposed on many other Southeast Asian countries such as Vietnam and the Philippines. 'It's one of the major successes of Team Thailand in a win-win approach, to secure the country's export base and economic security in a long run,' he said in a statement. He didn't immediately say what was the latest offer Thailand made to the U.S. The agreement came days after a ceasefire between Thailand and Cambodia to halt the nearly weeklong clashes that killed at least 41 people. It was brokered with U.S. pressure as Trump said he would not move forward with trade agreements if the conflict continued. The Associated Press Sign in to access your portfolio
CNA
14 minutes ago
- Health
- CNA
Indonesia's military set to produce drugs for public use to lower prices. Will it cause more headaches?
JAKARTA: Indonesia's plan for the military to produce medicines for public use has sparked alarm among health experts, who question whether the armed forces possess the required expertise and safety protocols. Although facilities run by the army, navy and air force already produce drugs for their soldiers, experts question if they can meet the standards of modern pharmaceutical production. On Jul 22, Indonesian Defence Minister Sjafrie Sjamsoeddin signed an agreement with the country's Food and Drug Supervisory Agency (BPOM) authorising labs run by the army, navy and air force to start producing drugs and medical supplies for civilians. Sjafrie said the military will increase the production capacity of its medical research centres before beginning to produce drugs for the public. The Indonesian government, the minister added, is hoping to launch these military-produced medicines on Oct 5, the 79th anniversary of the country's armed forces. The drugs, he said, will be half the price of those produced by regular pharmaceutical companies and will be available at the 80,000 state-backed Red and White village cooperatives, a programme recently launched by President Prabowo Subianto. 'We will mass produce medicines and ship them to villages at prices which are 50 per cent cheaper than those in the market so people can afford them,' Sjafrie told reporters on Jul 22. "We are thinking of ways to lower the price even more so we could provide free medicines." According to its website, the military has produced 44 types of drugs for internal use, including several paracetamols, pain killers and antibiotics. Officials have not disclosed what medicines or the quantities that would be produced for public use. Experts highlighted the lack of information on the standards and protocols at the military's production facilities. 'Producing medicines requires expertise, precision, sterile labs and strict protocols. How can an institution whose core competence is not in the pharmaceutical sector be allowed to produce medicines for the general public?' Windhu Purnomo, a public health expert from Airlangga University, told CNA. 'What is at stake is the safety, efficacy and quality of the medications produced.' The opaque nature of the military adds to transparency and accountability concerns, observers said. 'If their manufacturing process is faulty, does the health ministry or the BPOM have power over the military? Will those responsible be held accountable? Because the military is not subject to civilian rules and regulations,' said Hermawan Saputra, chairman of the Indonesian Health Expert Association. The pharmaceutical push comes amid a broader political shift under Prabowo, a former defence minister and a retired army general, who has expanded the military's role in civic affairs since he took office last year. Under Prabowo, uniformed men have been appointed to strategic civilian positions inside various ministries, agencies and state-owned enterprises. The military has also been awarded lucrative contracts by the government that range from road construction to cash crop cultivation in various parts of the country. It has even secured catering contracts to supply food to millions of school children and pregnant women under the president's signature free meal initiative. WHAT MEDICINES WILL THE MILITARY PRODUCE? Indonesia has several medical research centres operated by different branches of the armed forces. These centres were built in the 1950s to develop medical procedures, equipment and medicines to treat combat injuries and fight diseases endemic to soldiers' operational areas. The military has not disclosed much information about these research centres, including what types of medication and supplies they produce, how much they produce and where the supplies are distributed. Producing vast quantities of medicines for civilians of different ages and with different health conditions is not the same as manufacturing a limited amount of drugs for a group of young and fit soldiers, experts said. 'The protocols and standards are much stricter for mass produced medicines,' said Hermawan of the health expert association. 'Some chemicals need to be handled, stored and processed in very specific ways. There are strict guidelines to prevent contamination and mix-ups.' Failure to follow these pharmaceutical manufacturing practices can have deadly consequences, he added. In 2022, more than 200 children in various parts of the country died of an acute kidney injury after consuming toxic cough syrup. The poisoning also left several survivors with permanent disabilities including blindness and hearing loss. Last year, an Indonesian court found that lax oversight by the pharmaceutical company Afi Farma and its supplier, Samudra Chemical, caused the syrup to be tainted with ethylene glycol at a concentration that was 1,000 times higher than what is considered safe for consumption. Ethylene glycol is a commonly used chemical in products such as brake fluid and antifreeze. Four officials from Afi Farma and Samudra Chemical were each sentenced to two years in prison and the two companies were ordered to pay millions of dollars in fines and compensation to the victims' families. Samudra Chemical was a new player in the pharmaceutical industry while Afi Farma has been producing medicines since 1985. According to court documents, Samudra was originally selling chemicals to soap manufacturers and had only begun supplying to pharmaceutical companies for a year before the incident occurred. The risk of such poisoning incidents recurring is high if medicines are produced by inexperienced players, experts said. Such episodes, Hermawan said, not only erode the public's trust in the country's health system but also tarnish Indonesia's image internationally. 'Health organisations might think twice about sending free vaccine or drug materials to Indonesia because there is a high chance these materials will not be processed properly,' he said. Taruna Ikrar, chief of the drug supervisory agency BPOM, said his office will ensure that the drugs produced by the military are safe. The Indonesian Armed Forces, he added, is in the process of acquiring the permits and certifications needed to produce and distribute medicines. 'We will make sure the military meets all the requirements, from manufacturing to laboratory standards. We are making recommendations so the military can obtain these certificates,' he said. Indonesian officials have said the military's involvement is needed to keep drug prices low. Existing pharmaceutical players care more about maximising profit than serving people's needs, officials have said, but such an argument misses the mark, experts countered. 'The main problem is 85 per cent of our pharmaceutical ingredients are imported, especially from China and India, and they sometimes involve very long chains of suppliers and intermediaries,' Dicky Budiman, a public health expert from Jakarta's Yarsi University told CNA. This is a factor causing the prices of some drugs in Indonesia to be up to five times that of other countries. 'What the (Indonesian) government should be doing is to build an upstream pharmaceutical industry,' Dicky said. It should provide incentives in the form of tax breaks, subsidies and funding so local pharmaceutical companies, as well as universities and research bodies can develop and produce their own chemical and biological ingredients. 'The government can also force (pharmaceutical) companies to increase their local content through regulations or by prioritising medications with high local content to supply state-run hospitals, health insurance schemes or other government programmes,' he said. Another way to keep medicines affordable is to simplify the distribution chain. The same drug can be sold at starkly different prices at different pharmacies due to various reasons, noted Windhu of Airlangga University. One pharmacy might sell some products cheaply because they are procured directly from the manufacturer. But other products may cost more because the pharmacy may have had to go through layers of distributors and intermediaries. 'Sometimes, a pharmacy will just inflate the price because they are the only ones in town and the nearest competitors are kilometres away,' Windhu added. Each year, the government caps the price of certain generic drugs but experts said this is rarely enforced. Putting a ceiling on how much medicines should cost will force the industry to simplify its distribution chain, Windhu said, as well as curb monopolistic and unethical practices. 'It is no secret that pharmaceutical companies like to provide junkets, lavish events, gifts and even kickbacks to get doctors to prescribe their products, and these costs are ultimately borne by the consumers,' he said. 'It's time the government gets serious about putting a ceiling on how much drugs should be sold, so companies will think twice about these types of practices.' WHEN IS THE MILITARY NEEDED? Despite the outcry, experts acknowledged that the military has valuable assets that can be mobilised to strengthen Indonesia's pharmaceutical industry. With its vast logistical network, disciplined personnel and reach into the most remote corners of the archipelago, the Indonesian Armed Forces could help overcome one of the health sector's most persistent challenges: distribution. 'The military is well equipped to handle distribution to all areas, even the most remote ones. That's different from the private sector which just doesn't have that kind of infrastructure,' Windhu said. The COVID-19 pandemic offered a clear example of how military's logistical abilities and manpower can complement national health efforts. During the pandemic, the military helped transport vaccines, set up field hospitals, and distribute aid to remote regions that proved critical to the overall emergency response. 'The military can be quite useful in times of emergency. However, under normal circumstances, the military should focus on playing a supporting role, filling the gaps which the civilian sector cannot fulfill like (distributing medicines to) remote areas,' Khairul Fahmi, a military expert of the think tank Institute for Security and Strategic Studies told CNA. 'By focusing only on filling the gaps, the military's involvement can strengthen Indonesia's medical sector and not disrupt or be in direct competition with existing pharmaceutical businesses. More importantly, Indonesia can maintain civilian supremacy in the sector.' Health expert Windhu agreed. 'In an emergency where we need to produce huge quantities of medicines in a short amount of time, getting the military involved in pharmaceutical production is justified,' Windhu said.
Bloomberg
15 minutes ago
- Business
- Bloomberg
BloombergNEF on Asia's Energy Transition
Fauziah Marzuki, Strategic Lead, BloombergNEF examines how global trends such as geopolitical tensions and growing data center power demand are shaping Asia's energy transition outlook at the 2025 Bloomberg Sustainable Business Summit in Singapore. (Source: Bloomberg)
Bloomberg
15 minutes ago
- Business
- Bloomberg
CapitaLand Investment's Paul Tham on Growth Strategies
Paul Tham, Group Chief Financial Officer, CapitaLand Investment discusses the role of sustainability in growth strategies and risk management with Bloomberg's Nina Trentmann at the 2025 Bloomberg Sustainable Business Summit in Singapore. (Source: Bloomberg)
Al Arabiya
15 minutes ago
- Business
- Al Arabiya
The Latest: US trade partners around the world react to Trump's new tariffs
US trade partners around the world were reacting on Friday to President Donald Trump's executive order that would introduce new tariffs on many of them in seven days as the global economy and alliances face a fresh test from the president's trade agenda. Trump's order was issued Thursday night and came after a flurry of tariff-related activity in recent days as the White House announced agreements with various nations and blocs ahead of Trump's self-imposed Aug. 1 deadline. Trump also said Thursday he would be extending trade negotiations with Mexico for 90 days. But the vast majority of nations are continuing to face uncertainty ahead of the coming deadline. And while a handful of trade deals have trickled in many details remain hazy – with businesses and manufacturers around the world bracing for heightened operating costs and potential price hikes regardless. Meanwhile Trump's overhaul of American trade policy hasn't gone unchallenged. Appellate court judges have expressed broad skepticism around Trump's legal rationale for his most expansive round of tariffs. Here's the latest: Malaysia hails significant achievement in 19 percent tariff rate Malaysia's Trade Ministry said Friday that the US tariff reduction from 25 percent to 19 percent was a significant achievement as the deal was struck without compromising key national interests. The 19 percent rate roughly tracks the rate of other countries in the Southeast Asian region the ministry said in a statement. Most importantly Malaysia had stood firm on various red line items and the 19 percent tariff rate was achieved without compromising the nation's sovereign right to implement key policies to support the nation's socio-economic stability and growth. The ministry said that Malaysia's economy remains resilient despite global headwinds citing strong domestic demand and ongoing structural reforms. The statement didn't give further details but officials previously said non-tariff barriers such as halal certification which affects US beef and poultry exports along with digital trade and government procurement were sticky points. It's unclear what concessions Malaysia made. Cambodia will impose zero tariffs on all American goods Cambodia's Deputy Prime Minister Sun Chanthol who led his nation's trade talks with the US thanked Trump for setting the tariff rate on Cambodian goods at 19 percent and said his country will impose zero tariffs on all American goods. When Washington originally posted its list of notional reciprocal tariffs the rate for goods from Cambodia was 49 percent one of the highest in the world. It had estimated that Cambodian tariffs on US imports averaged 97 percent. Sun Chanthol also said Cambodia would purchase 10 passenger aircraft from Boeing in a deal they hoped to sign later this month. Several other nations had already announced similar aircraft purchase deals as part of their trade packages. Trump had threatened to not conclude a deal with reduced tariffs if Cambodia and Thailand did not stop a recent armed conflict over border territory. The two nations agreed on a ceasefire beginning Tuesday that appears to be holding. Cambodia publicly celebrated Trump's peace initiative suggesting he deserved a Nobel Prize for his intervention. Sun Chanthol said Friday that Cambodia would nominate him for the honor. Australia's 10 percent tariff rate is vindication of the country's cool and calm negotiations trade minister says Australian Trade Minister Don Farrell says gaining the minimum US tariff on exports including beef lamb wine and wheat gave Australia a competitive advantage over some competitors. Farrell told reporters 'Australia did not introduce tariffs on US goods at any point and added I haven't seen any case or any example where the retaliatory imposition of tariffs has resulted in a country being in a better position.' Farrell argues that no US tariffs can be justified because Australia imposes no tariffs on its bilateral free trade partner. The United States has enjoyed a trade surplus with Australia for decades. Australian Prime Minister Anthony Albanese has been criticized for failing to secure a face-to-face meeting with Trump to discuss trade. Japan welcomes Trump's signing of the executive order as an ease in uncertainty Japanese Chief Cabinet Secretary Yoshimasa Hayashi welcomed Trump's signing of the executive order setting Japan's new reciprocal tariffs as a step that would reduce uncertainty of the US trade policy and its negative impact on the global economy including that of Japan. Hayashi however said Japan still needs to closely examine the measures and continue urging prompt implementation by the US government to carry out the agreement including reduction of tariffs on automobiles and auto parts. Hayashi acknowledged that Japan's new tariff rate of 15 percent is a major reduction from the initially imposed 25 percent but his government will continue to watch and mitigate its impact on Japanese exports including by providing financial assistance for small and medium-sized businesses. New Zealand looks to lobby for lower tariff rates New Zealand officials said they would lobby the administration for a change to the 15 percent tariff announced for the country's exporters to the US It's an increase from the original 10 percent baseline announced for New Zealand in April. 'We don't think this is a good thing. We don't think it's warranted,' Trade Minister Todd McClay told Radio New Zealand Friday. He said New Zealand appeared to have been targeted for a larger levy because the country records a trade deficit with the US but that the gap of about half a billion dollars each year was not significant or meaningful. Neighboring Australia dodged an increase to remain at 10 percent but it records a trade surplus with the US McClay added. The United States in January overtook Australia to become New Zealand's second-largest export partner behind China. New Zealand exports are largely made up of meat dairy wine and agricultural machinery. Taiwan president says final tariff negotiations with US yet to come Taiwan President Lai Ching-te said Taiwan had yet to engage in final negotiations with the US owing to scheduling difficulties and that he was hopeful the final tariff rate would be reduced even further after a final round of talks. The Trump administration hit Taiwan with 32 percent tariffs and lowered it to 20 percent on Thursday. Taiwan was notified on Thursday by the administration of the lower rate. 'Twenty percent from the beginning has not been our goal. We hope that in further negotiations we will get a more beneficial and more reasonable tax rate,' he told reporters in Taipei on Friday. Lai also linked trade talks to security issues as the US is Taiwan's largest ally even though it does not formally recognize the island. 'We want to strengthen US Taiwan cooperation in national security tech and multiple areas,' he said Friday. The US is Taiwan's most important export market and strategic ally Lai said in an earlier statement Friday morning. Cambodia prime minister thanks Trump for dropping tariff rate Cambodia Prime Minister Hun Manet expressed his thanks to Trump for the dropping of tariffs from 36 percent to 19 percent and he called the reduction 'good news for Cambodia.' Posted on his social media platform Hun Manet said Trump had not only helped broker a ceasefire between Cambodia and Thailand forces after nearly a weeklong clash but also helped Cambodia's economy by lowering tariffs. 'This is good news for the people and economy of Cambodia to continue developing the country,' Hun Manet said. Thailand successfully negotiates lower tariff rates Thailand's government spokesperson Jirayu Houngsub said Thailand says the US agreed to reduce the tariffs rate from 36 percent to 19 percent a rate similar to those imposed on many other Southeast Asian countries such as Vietnam and the Philippines. It's one of the major successes of Team Thailand in a win-win approach to secure the country's export base and economic security in a long run he said in a statement. He didn't immediately say what was the latest offer Thailand made to the US The agreement came days after a ceasefire between Thailand and Cambodia to halt the nearly weeklong clashes that killed at least 41 people. It was brokered with US pressure as Trump said he would not move forward with trade agreements if the conflict continued.
