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NZ Herald
14-05-2025
- Business
- NZ Herald
China, US slash sweeping tariffs in trade war climbdown
Trump had upended international commerce with his sweeping tariffs across economies, and China has been especially hard hit. Unwilling to budge, Beijing responded with retaliatory levies that brought new tariffs on both sides well over 100%. After billions were wiped off equities and with businesses ailing, negotiations finally got under way at the weekend in Geneva between the world's trade superpowers to find a way out of the impasse. Under the deal, the United States agreed to lower its new tariffs on Chinese goods to 30% while China will reduce its own to 10%, down by over 100 percentage points. 'No winners' The reductions came into effect just after midnight Washington time (4.01am GMT) on Wednesday, a major de-escalation in trade tensions that saw US tariffs on Chinese imports soar to up to 145% and even as high as 245% on some products. Washington also lowered duties on low-value imports from China that hit e-commerce platforms like Shein and Temu. Under Trump's order, such small parcels would be hit by duties of 54% of their value – down from 120% – or a $100 payment. China said Wednesday it was suspending certain non-tariff countermeasures too. Beijing's commerce ministry said it was halting for 90 days measures that put 28 US entities on an 'export control list' that bars firms from receiving items that could be used for both civilian and military purposes. The ministry added in a separate statement that it was pausing measures which added 17 US entities to an 'unreliable entity list'. Companies on the list are prohibited from import and export activities or making new investments in China. The suspension for 11 entities added on April 4 applies for 90 days, while the ministry did not specify the length of suspension for six others added on April 9. Markets have rallied after the China-US tariff suspension. Chinese officials have pitched themselves at a summit in Beijing with Latin American leaders this week as a stable partner and defender of globalisation. 'There are no winners in tariff wars or trade wars,' Chinese President Xi Jinping told leaders, including Brazil's Luiz Inacio Lula da Silva. His top diplomat, Wang Yi, swiped at a 'major power' that believed 'might makes right'. 'Risk of renewed escalation' Deep sources of tension remain – the US additional tariff rate is higher than China's because it includes a 20% levy over Trump's complaints about Chinese exports of chemicals used to make fentanyl. Washington has long accused Beijing of turning a blind eye to the fentanyl trade, something China denies. Analysts warn that the possibility of tariffs returning after 90 days simply piles on more uncertainty. 'Further tariff reductions will be difficult and the risk of renewed escalation persists,' Yue Su, principal economist at The Economist Intelligence Unit, told AFP. Trump's rollercoaster tariff row with Beijing has wreaked havoc on US companies that rely on Chinese manufacturing, with the temporary de-escalation only expected to partially calm the storm. And Beijing officials have admitted that China's economy, already ailing from a protracted property crisis and sluggish consumer spending, is likewise being affected by trade uncertainty.
RTHK
14-05-2025
- Business
- RTHK
Export relief as easier tariffs regime comes into play
Export relief as easier tariffs regime comes into play Construction machines are loaded onto ships at Lianyungang City's port in Jiangsu for export destinations ion Tuesday. Photo: AFP The United States and China are lifting sweeping tariffs on each others' goods for 90 days on Wednesday after a temporary ceasefire in a brutal trade war that roiled global markets and international supply chains. Washington and Beijing had agreed to drastically lower skyhigh tariffs in a deal that emerged from pivotal talks at the weekend in Geneva. US President Donald Trump said Washington now had the blueprint for a "very, very strong" trade deal with China that would see Beijing's economy "open up" to US businesses, in an interview broadcast on Tuesday on Fox News. "We have the confines of a very, very strong deal with China," he told the US broadcaster while aboard Air Force One on the way to the start of his Gulf tour. "But the most exciting part of the the opening up of China to US business. "One of the things I think that could be most exciting for us and also for China, is that we're trying to open up China." Trump had upended international commerce with his sweeping tariffs across economies, with China hit hardest. Unwilling to budge, Beijing had responded with retaliatory levies that brought tariffs on both sides well over 100 percent. After billions were wiped off equities and with businesses ailing, negotiations finally got under way at the weekend in Geneva between the world's trade superpowers to find a way out of the impasse. Under the deal, the United States agreed to lower its tariffs on Chinese goods to 30 percent while China will reduce its own to 10 percent – down by over 100 percentage points. The reductions will come into effect just after midnight Washington time, noon Hong Kong time, on Wednesday, a major de-escalation in trade tensions that saw US tariffs on Chinese imports soar to up to 145 percent and even as high as 245 percent on some products. Markets rallied in the glow of the China-US tariff suspension. Chinese officials have kept their cards closer to their chests, pitching themselves at a summit in Beijing with Latin American leaders this week as a stable partner and defender of globalisation. "There are no winners in tariff wars or trade wars," Xi told leaders including Brazil's Luiz Inacio Lula da Silva, while his top diplomat Wang Yi swiped at a "major power" that believed "might makes right". And while the US said it sees room for progress on the issue, Beijing on Tuesday warned Washington to "stop smearing and shifting blame" onto it. Analysts also warn that the possibility of tariffs coming back into force after 90 days simply piles on more uncertainty. "Further tariff reductions will be difficult and the risk of renewed escalation persists," Yue Su, Principal Economist at The Economist Intelligence Unit, told AFP. Trump's rollercoaster tariff row with Beijing has wreaked havoc on US companies that rely on Chinese manufacturing, with a temporary de-escalation only expected to partially calm the storm. And Beijing officials have admitted that China's economy -- already ailing from a protracted property crisis and sluggish consumer spending -- is likewise being affected by the trade uncertainty. "Both sides have endured a good deal of economic pain and they can still endure a little bit more," said Dylan Loh, an assistant professor at Singapore's Nanyang Technological University. (AFP)
France 24
14-05-2025
- Business
- France 24
China, US to lift sweeping tariffs in trade war climbdown
Washington and Beijing had agreed to drastically lower skyhigh tariffs in a deal that emerged from pivotal talks at the weekend in Geneva. US President Donald Trump said Washington now had the blueprint for a "very, very strong" trade deal with China that would see Beijing's economy "open up" to US businesses, in an interview broadcast Tuesday on Fox News. "We have the confines of a very, very strong deal with China. But the most exciting part of the the opening up of China to US business," he told the US broadcaster while aboard Air Force One on the way to the start of his Gulf tour. "One of the things I think that could be most exciting for us and also for China, is that we're trying to open up China," he added, without elaborating on details. Trump had upended international commerce with his sweeping tariffs across economies, with China hit hardest. Unwilling to budge, Beijing had responded with retaliatory levies that brought tariffs on both sides well over 100 percent. After billions were wiped off equities and with businesses ailing, negotiations finally got underway at the weekend in Geneva between the world's trade superpowers to find a way out of the impasse. Under the deal, the United States agreed to lower its tariffs on Chinese goods to 30 percent while China will reduce its own to 10 percent -- down by over 100 percentage points. The reductions will come into effect just after midnight Washington time (0401 GMT) on Wednesday, a major de-escalation in trade tensions that saw US tariffs on Chinese imports soar to up to 145 percent and even as high as 245 percent on some products. Markets rallied in the glow of the China-US tariff suspension. Chinese officials have kept their cards closer to their chests, pitching themselves at a summit in Beijing with Latin American leaders this week as a stable partner and defender of globalisation. "There are no winners in tariff wars or trade wars," Xi told leaders including Brazil's Luiz Inacio Lula da Silva, while his top diplomat Wang Yi swiped at a "major power" that believed "might makes right". 'Risk of renewed escalation' Deep sources of tension remain, too -- the US additional tariff rate remains higher than China's because it includes a 20 percent levy over Trump's complaints about Chinese exports of chemicals used to make fentanyl. Washington has long accused Beijing of turning a blind eye to the fentanyl trade, something China denies. And while the US said it sees room for progress on the issue, Beijing on Tuesday warned Washington to "stop smearing and shifting blame" onto it. Analysts also warn that the possibility of tariffs coming back into force after 90 days simply piles on more uncertainty. "Further tariff reductions will be difficult and the risk of renewed escalation persists," Yue Su, Principal Economist at The Economist Intelligence Unit, told AFP. Trump's rollercoaster tariff row with Beijing has wreaked havoc on US companies that rely on Chinese manufacturing, with a temporary de-escalation only expected to partially calm the storm. And Beijing officials have admitted that China's economy -- already ailing from a protracted property crisis and sluggish consumer spending -- is likewise being affected by the trade uncertainty. "Both sides have endured a good deal of economic pain and they can still endure a little bit more," Dylan Loh, an assistant professor at Singapore's Nanyang Technological University, told AFP.
Axios
01-05-2025
- Business
- Axios
China's not backing down in Trump's game of chicken
President Trump is putting China's economy through a trillion-dollar stress test, and he may not like the result. Why it matters: Treasury Secretary Scott Bessent insists China is far more reliant on the U.S. than vice-versa, and thus has no choice but to blink first. But Chinese President Xi Jinping's disinclination to rush to the table suggests he thinks time is on China's side. We're about to get some indications of who is right. The big picture: China says it sent around 15% of its exports, worth $525 billion, to the U.S. last year — about 3x what flowed in the opposite direction. (U.S. data differs on the total value by nearly $100 billion, but the ratios are about the same.) New export orders are already falling sharply, portending empty shelves and price hikes in the U.S. But Bessent has claimed China would be hit far harder, potentially losing 10 million jobs just in the near-term. "I believe that it's up to China to de-escalate, because they sell five times more to us than we sell to them, and so these 120%, 145% tariffs are unsustainable," he told CNBC. China's inflation and retail sales data in the coming weeks should provide the first insights into whether the country could really outlast the U.S. in a prolonged trade war. Between the lines: China has been endeavoring for years to reduce its reliance on exports to the U.S., and the hunt for alternative markets has taken on a new urgency. E-commerce sales for low-cost Chinese retailers have started to tick up in Europe, though the degree to which other markets can replace the U.S. will likely depend on the product. Beijing has also been trying to convince its savings-conscious consumers to buy more of what China produces, highlighting stronger spending as an economic priority. The government has been offering vouchers and subsidies directly to consumers, including rebates to trade in old cars and appliances. It announced additional measures last month to "vigorously boost consumption" across a range of industries. The government is also rallying citizens and corporations with a nationalistic message that China is being unfairly targeted. Zoom in: If Chinese consumers start spending and absorbing some originally U.S.-bound goods, authorities in Beijing have a lot more room to stand their ground. Reality check: While China's economy may prove more adaptable than Bessent hopes, many ordinary Chinese will undoubtedly be hurt by the trade war, just as many Americans will. While it's unclear which side will be hit harder, "Chinese leaders have sort of committed themselves to rolling out stimulus, depending on the economic conditions," according to Tianchen Xu, senior economist at The Economist Intelligence Unit. "For example, if the export sector is really struggling and it leads to a substantial rise in unemployment and social stability risks, then I think they will be quite decisive in terms of providing more support." What to watch: The tariff pain is more likely to translate to immediate political pressure in the U.S. than in China, both because of the nature of the two political systems and because people on both sides know it was Trump, not Xi, who chose this fight.
Zawya
30-04-2025
- Business
- Zawya
Middle East stands out as a growth outlier amid recession risks, inflation pressures, and policy uncertainty
Dubai, UAE – Against the backdrop of rising global volatility, St. James's Place (SJP), a FTSE-listed global financial advisory firm with over one million customers and $245 billion in assets under management, is urging investors to stay anchored to long-term fundamentals and adopt diversified strategies to weather volatility. Speaking at the Global Economic Outlook 2025 Conference in Dubai, convened by St. James's Place with participation from the BlackRock Investment Institute and The Economist Intelligence Unit, experts presented a sobering but pragmatic view of the world economy. Latest global economic data by The Economist Intelligence Unit forecasts global GDP growth to slow to just 1.9% in 2025, with the United States projected to experience a mild recession and Europe continuing to face weak momentum. Policy uncertainty persists, driven by geopolitical fragmentation, erratic fiscal and monetary policy, and intensifying trade tensions. At the same time, inflation remains elevated, and the US dollar is expected to weaken through 2025–26, ending a decade-long appreciation cycle and setting the stage for shifts in capital flows and asset valuations. It is not all doom and gloom though. Despite the uncertainty clouding the global outlook, the Middle East stands out as a region of relative resilience. The Gulf region is projected to experience steady growth, underpinned by anchored public finances, strong external positions, and a reform-driven policy agenda. Governments are accelerating economic diversification efforts, investing in digital infrastructure, high-tech industries, and productivity-enhancing sectors. Structural reforms continue to improve the region's business and investment environment, boosting its appeal to foreign capital. The UAE now ranks 15th globally in the EICN Business Environment Index—the highest in the Middle East. Empirical data shows that such improvements in business environment scores are often followed by multi-year increases in GDP per capita, investment levels, and FDI inflows. With expanding international trade and investment agreements and a young, growing population, the region is well-positioned to capture long-term capital. "The Middle East is no longer just a diversification play, it has the potential in becoming a more core investment destination," said Angelina Lai, Chief Investment Officer for St James's Place Asia and Middle East. "For investors seeking growth, stability, and structural transformation, the region presents compelling opportunities that cannot be ignored." Looking at the investment landscape, St. James's Place believes that today's volatility will reward investors who combine patience, expertise, and discipline. "Investors today are navigating one of the most complex economic environments we've seen in decade s. High policy uncertainty, fragmented geopolitics, and evolving growth patterns are rewriting the rules of investing,' said Justin Onuekwusi, Chief Investment Officer, St. James's Place. " In this landscape, s uccessful investing requires staying focused on the fundamentals, staying disciplined, and staying resilient for the long term. Good advice is more critical than ever. Every investor has unique goals, time horizons, and preferences — and these need tailored, actively managed strategies, especially during times of uncertainty.' About St. James's Place St. James's Place (SJP) is a leading financial advisory group, with offices across the UK, and internationally in Hong Kong, Singapore and the UAE. Through its dedicated network of financial advisers – the Partnership – the business provides a highly personal, face-to-face financial advice to individuals, businesses and trusts based on their personal needs and circumstances. Founded in the UK in 1991, St. James's Place was listed on the London Stock Exchange in 1997 and presently has nearly one million clients with funds of over £190 billion. Since its expansion into Asia in 2014, SJP has become one of Asia's largest wealth management companies serving the local and expatriate communities.
