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Bloomberg
10-07-2025
- Business
- Bloomberg
BOK Stands Pat on Rate as Housing Rally, Tariff Risks Take Focus
The Bank of Korea left its policy rate unchanged Thursday as it monitors the impact of its earlier easing moves on soaring home prices and an economy threatened by higher US tariffs. The BOK held its seven-day repurchase rate at 2.5%, as expected by all 19 economists surveyed by Bloomberg. The decision reflects the BOK's intention to keep monetary policy accommodative, while staying vigilant against financial imbalances fueled by booming apartment prices in Seoul and uncertainty over US trade policy.
Reuters
09-07-2025
- Business
- Reuters
Trump tariffs create national disaster for tiny Lesotho
MASERU, July 9 (Reuters) - When Limpho Lefalatsa first learned she had lost her job at a Lesotho garment factory after 12 years due to U.S. President Donald Trump's decision to hit her tiny African homeland with a crippling tariff on its exports, she was in shock. "I thought I was going insane. It made no sense," the 29-year-old said at her house in the capital Maseru. "When the truth started sinking in, I felt so helpless." Lefalatsa's monthly factory wage of around 3,000 rand ($168) had supported herself, sent her 12-year-old daughter to school and paid for the blood pressure medicine her elderly grandmother needs to survive. Now that income is gone, and she still does not understand why. She's not alone. When Trump announced tariffs on imports for nearly all of the United States' trading partners in April, the Southern African mountain kingdom of Lesotho was singled out for the highest rate: 50%. Lesotho officials were baffled, not least since their country, which Trump disparaged as a nation "nobody has ever heard of", was the poster child of a flagship U.S. programme aimed at helping poor African economies develop through trade. The Trump administration has defended the tariffs as reciprocal, saying that Lesotho charges 99% tariffs on U.S. goods. Lesotho officials say they do not know how the White House arrived at that figure. The U.S. State Department did not immediately respond to a written request for comment. Lesotho's textiles sector, its leading export industry, is heavily dependent upon the Africa Growth and Opportunities Act, a U.S. trade initiative that offers qualifying African nations duty-free access to the U.S. market. On the back of that preferential tariff treatment, Lesotho developed a textiles sector that, until now, was the biggest private employer with some 40,000 jobs and accounted for roughly 90% of manufacturing exports, according to Oxford Economics. Exports to the U.S. under AGOA, including Levi (LEVI.N), opens new tab and Wrangler jeans from a textile sector that largely employs women like Lefalatsa, make up a tenth of Lesotho's $2 billion gross domestic product. That now looks set to disappear. This week Lesotho declared a national state of disaster due to the "high rates of youth unemployment and job losses" caused by uncertainty surrounding the tariffs. "You can see there are no people here," said Teboho Kobeli, owner of Afri-Expo, which makes jeans for export, gesturing towards rows of unmanned sewing machines at his factory. While Trump suspended application of his tariff barrage for three months just days after his so-called "Liberation Day" announcement in order to give trading partners time to negotiate deals with Washington, in Lesotho the damage was already done. The simple prospect of a 50% tariff caused many U.S. importers to cancel orders, leading, in turn, to mass sector-wide layoffs. And what orders still exist now bear more risk than reward. "Employers ... are just scared of taking more orders lest they plunge themselves into costs they are not ready to service," independent political and economic analyst Lefu Thaela told Reuters. The White House has yet to announce its final tariff on imports from Lesotho. Trump's 90-day suspension was due to expire on Wednesday. But factory owners like Kobeli, who has dismissed 200 workers from his U.S.-focused production lines, fear the worst. "If we still have these high tariffs, it means we must forget about producing for the U.S. and go as fast as we can ... (looking for) other available markets," he said. A spokesperson for Lesotho's trade ministry declined to comment until the government receives official communication from the Trump administration. However, others, like retrenched garment worker Nteboheleng Hlapane, have a message for the U.S. president. "I just pray to God that he touches your soul," said the 37-year-old, who can no longer afford the inhaler her son needs to treat his asthma. "Think about other people ... They are suffering because of your selfishness, your cruelty." ($1 = 17.8465 rand)
The National
09-07-2025
- Business
- The National
Trump unveils 30% tariff on Iraq in latest batch of trade letters
Donald Trump announced a 30 per cent tariff on Iraqi imports on Wednesday, with the country becoming the latest to have received a so-called trade letter from the US President. The latest tariff on Baghdad is 9 per cent lower than what Mr Trump had initially announced on the country on April 2. The White House this week extended its delayed implementation of the 'reciprocal tariffs' − set to go into effect on Wednesday − to August 1. Mr Trump in April imposed a 10 per cent tariff on almost all trading partners. His letter to Iraqi Prime Minister Mohammed Shia Al Sudani is nearly identical to those sent to other countries this week, including Japan and South Korea. The letter also contains a similar threat Mr Trump has made to the affected countries, warning them not to impose retaliatory measures. 'If for any reason you decide to raise your t ariffs, then, whatever the number you choose to raise them by, will be added on to the 30 per cent that we charge,' Mr Trump wrote in the letter, which he posted on social media. The Iraqi embassy in Washington said there was no immediate response from Baghdad. Mr Trump also announced tariffs of 30 per cent on Libya and Algeria, 25 per cent on Brunei and 20 per cent on the Philippines. The President has framed the so-called reciprocal tariffs as a means to reduce the US trade deficit with certain countries. US total goods exports to Iraq totalled $1.7 billion in 2024, according to the Office of the US Trade Representative, while imports from Iraq totalled $7.4 billion. The US goods trade deficit with Iraq was $5.8 billion last year, a 7 per cent decrease from 2023. 'We have had years to discuss our trading relationship with Iraq, and have concluded that we must move away from these long-term, and very persistent, Trade deficits engendered by Iraq's tariff, and non-tariff, policies and trade barriers,' Mr Trump wrote. 'Our relationship has been, unfortunately, far from reciprocal.' Mr Trump also said the US would not impose tariffs on Iraq or Iraqi-based companies if they build or manufacture products within the US. This latest batch of countries to have received the trade letters follows more than a dozen others, including Lebanon and Bangladesh, who received them this week. The President on Tuesday also announced new tariffs on copper and pharmaceuticals.
Globe and Mail
09-07-2025
- Business
- Globe and Mail
Lesotho's textile industry in disaster after Trump tariffs
When Limpho Lefalatsa first learned she had lost her job at a Lesotho garment factory after 12 years due to U.S. President Donald Trump's decision to hit her tiny African homeland with a crippling tariff on its exports, she was in shock. 'I thought I was going insane. It made no sense,' the 29-year-old said at her house in the capital Maseru. 'When the truth started sinking in, I felt so helpless.' Lefalatsa's monthly factory wage of around 3,000 rand (US$168) had supported herself, sent her 12-year-old daughter to school and paid for the blood pressure medicine her elderly grandmother needs to survive. Now that income is gone, and she still does not understand why. She's not alone. When Trump announced tariffs on imports for nearly all of the U.S.'s trading partners in April, the Southern African mountain kingdom of Lesotho was singled out for the highest rate: 50 per cent. Lesotho officials were baffled, not least since their country, which Trump disparaged as a nation 'nobody has ever heard of', was the poster child of a flagship U.S. program aimed at helping poor African economies develop through trade. The Trump administration has defended the tariffs as reciprocal, saying that Lesotho charges 99 per cent tariffs on U.S. goods. Lesotho officials say they do not know how the White House arrived at that figure. The U.S. State Department did not immediately respond to a written request for comment. Lesotho's textiles sector, its leading export industry, is heavily dependent upon the Africa Growth and Opportunities Act, a U.S. trade initiative that offers qualifying African nations duty-free access to the U.S. market. On the back of that preferential tariff treatment, Lesotho developed a textiles sector that, until now, was the biggest private employer with some 40,000 jobs and accounted for roughly 90 per cent of manufacturing exports, according to Oxford Economics. Exports to the U.S. under AGOA, including Levi and Wrangler jeans from a textile sector that largely employs women like Lefalatsa, make up a tenth of Lesotho's US$2-billion gross domestic product. That now looks set to disappear. This week Lesotho declared a national state of disaster due to the 'high rates of youth unemployment and job losses' caused by uncertainty surrounding the tariffs. 'You can see there are no people here,' said Teboho Kobeli, owner of Afri-Expo, which makes jeans for export, gesturing toward rows of unmanned sewing machines at his factory. While Trump suspended application of his tariff barrage for three months just days after his so-called 'Liberation Day' announcement in order to give trading partners time to negotiate deals with Washington, in Lesotho the damage was already done. The simple prospect of a 50 per cent tariff caused many U.S. importers to cancel orders, leading, in turn, to mass sector-wide layoffs. And what orders still exist now bear more risk than reward. 'Employers ... are just scared of taking more orders lest they plunge themselves into costs they are not ready to service,' independent political and economic analyst Lefu Thaela told Reuters. The White House has yet to announce its final tariff on imports from Lesotho. Trump's 90-day suspension was due to expire on Wednesday. But factory owners like Kobeli, who has dismissed 200 workers from his U.S.-focused production lines, fear the worst. 'If we still have these high tariffs, it means we must forget about producing for the U.S. and go as fast as we can ... (looking for) other available markets,' he said. A spokesperson for Lesotho's trade ministry declined to comment until the government receives official communication from the Trump administration. However, others, like retrenched garment worker Nteboheleng Hlapane, have a message for the U.S. president. 'I just pray to God that he touches your soul,' said the 37-year-old, who can no longer afford the inhaler her son needs to treat his asthma. 'Think about other people ... They are suffering because of your selfishness, your cruelty.'
Associated Press
09-07-2025
- Business
- Associated Press
Southeast Asian foreign ministers meet as US tariffs loom
KUALA LUMPUR, Malaysia (AP) — Malaysian Prime Minister Anwar Ibrahim warned Wednesday that global trade is being weaponized as Southeast Asia's foreign ministers opened an annual meeting while facing the looming threat of U.S. trade tariffs. The threat of U.S. tariffs has jolted the Association of Southeast Asian Nations, a 10-member bloc that includes some of the world's most trade-dependent economies. Six ASEAN members are among the 14 countries that could see duties on their exports to the U.S. skyrocket on Aug. 1. Launching the Association of Southeast Asian Nations foreign ministers' meeting, Anwar said the world is now witnessing an era where 'power unsettles principle' and 'tools once used to generate growth are now wielded to pressure, isolate and contain.' Without mentioning the U.S. by name, he again urged ASEAN to work together to respond to trade threats. 'Our cohesion must not end at declarations,' he said, calling for members to increase intra-ASEAN trade, invest in regional integration, and reduce strategic dependencies on external powers. 'This is no passing storm,' he said. 'It is the new weather of our time.' Trump first announced tariffs in April, but then delayed them for 90 days to allow for deals. On Tuesday, he announced new tariff with rates of between 25%-40% on 14 countries, which will go into effect Aug. 1 unless new deals are struck. He also threatened to increase tariffs if any countries retaliate. Many ASEAN members have launched bilateral talks with the U.S., but officials have said they plan to hold an ASEAN-U.S. summit later this year to seek a common position. So far, only Vietnam has secured a deal, bringing down its tariffs from 46% to 20%. The list threatens 36% tariffs for Thailand and Cambodia, 32% for Indonesia, 25% for Malaysia, and 40% for Laos and war-torn Myanmar. In addition to confronting trade fallout, the bloc faces mounting internal challenges. The ongoing civil war in Myanmar and a border dispute between Thailand and Cambodia are also on the agenda. The gathering in Malaysia will be immediately followed by a series of critical meetings with ASEAN's major trade partners, including the United States, China, Japan, Russia, India, and the European Union, scheduled for Thursday and Friday. U.S. Secretary of State Marco Rubio, who last week cancelled trips to Japan and South Korea, will arrive Thursday for the talks on his first visit to Asia. Others visiting foreign ministers include China's Wang Yi and Sergei Lavrov of Russia. Analysts said these talks will test ASEAN's ability to assert its voice amid escalating geopolitical tensions. The bloc hopes to reinforce its commitment to a rules-based trade order while resisting pressure to align exclusively with any one global power. 'ASEAN must be among those who choose to stand for rules, even when others choose retreat,' Anwar said. Analysts said Rubio's presence signaled renewed U.S. engagement in the region. It will be a reminder to 'the region that Washington remains its most vital economic and security partner,' said Collins Chong Yew Keat, a foreign affairs, strategy and security analyst with Universiti Malay. But he said that U.S. support may now come with clearer expectations. 'Trump's administration, while still offering the strongest military deterrence and market access, expects ASEAN to stop exploiting this security umbrella while cozying up economically to China,' he said.
