Latest news with #reciprocaltariffs
CNA
4 days ago
- Business
- CNA
Bank of Japan may offer less gloomy view of US tariff hit in report, sources say
TOKYO :The Bank of Japan will warn of uncertainty over the impact of U.S. tariffs in a quarterly report due this month, but may offer a less gloomy view on the near-term hit to Japan's economy than three months ago, said three sources familiar with its thinking. With the BOJ set to keep interest rates steady at 0.5 per cent at its July 30-31 meeting, markets are focusing on how it will describe the growth and price outlook in a quarterly report due after the meeting. They are seeking clues on the timing of the next rate hike. In the upcoming report, the BOJ is likely to maintain its warning that uncertainty over the economic impact of U.S. tariffs remains very high, the sources, who declined to be identified, said. But the report may also reflect signs of resilience in U.S. and Chinese economies, as well as recent domestic data showing output and capital expenditure holding up, the sources said. "While the impact of tariffs will likely intensify, it's not showing up much in data so far," a factor that may affect the tone of BOJ's upcoming report, one of the sources said. "The BOJ must remain on high alert over risks from tariffs. But it also shouldn't be overly pessimistic either," another source said, a view echoed by a third source. The last report was compiled at the BOJ's previous rate review on April 30-May 1, when investors' pessimism was at its peak with markets still volatile after President Donald Trump's announcement of sweeping "reciprocal" tariffs. That report warns that uncertainty over U.S. tariffs will hit Japan's economy through various channels including by slowing global demand, weakening exports and souring business sentiment. But data released since then has not shown any clear evidence of damage from U.S. tariffs, or Japan's stalled trade talks with Washington, at least for now. The BOJ's "tankan" quarterly survey, released on April 1, showed business sentiment holding up. The bank's regional branch managers also gave a fairly sanguine view on the immediate hit from U.S. tariffs. Such data may be reflected in the next report's language on the economic outlook and risks, as well as in the board's growth projections, the sources said. In the last report, the BOJ expected the economy to grow 0.5 per cent in fiscal 2025, 0.7 per cent in 2026 and 1.0 per cent in 2027. The BOJ is likely to maintain its view that inflation will durably hit its 2 per cent target in the latter half of its three-year projection period running through fiscal 2027, the sources said. Domestic prices, on the other hand, have been moving higher than expected as steady rises in food costs keep consumer inflation well above the BOJ's 2 per cent target, the sources said. Some BOJ policymakers, such as hawkish board member Naoki Tamura, have warned of second-round effects from such cost-push price pressure, which may push up underlying inflation in a way that warrants resuming rate hikes. Sources have told Reuters the BOJ will consider revising up its inflation forecast for the current fiscal year reflecting persistent rises in rice and broader food costs.
South China Morning Post
13-07-2025
- Business
- South China Morning Post
As Trump's tariff patience wanes, countries scrambling for deals face hard choice
US trading partners trying to navigate the final weeks of negotiations before President Donald Trump's so-called reciprocal tariffs hit are facing a leader who has made clear he has lost patience with talks. Even as negotiators from Brussels to New Delhi are racing to find a way out of the punishing levies he has floated, Trump continued to send letters unilaterally setting rates – while still allowing for a little wiggle room. Early on Saturday, Trump posted letters sent to Mexican President Claudia Sheinbaum and European Commission president Ursula von der Leyen, declaring a 30 per cent rate for Mexico and the European Union beginning August 1. He said Mexico had failed to do enough to stop the flow of fentanyl into the United States and complained that the EU's trade deficit with the US was unfair. He suggested both partners could take steps to mitigate the rates – or he could increase them further if he did not like their responses. Efforts by those countries and others to find an escape from the punishing levies are expected to intensify next week ahead of a new August 1 deadline for many of the import taxes to kick in. US Treasury Secretary Scott Bessent is heading to Japan, and EU negotiators are focusing their attention on cars and agricultural tariffs in hopes of securing at least a provisional agreement.
NHK
04-07-2025
- Business
- NHK
Indonesia announces $34 bil. deal with US partners
Indonesia's chief economic minister revealed the country will sign a 34-billion-dollar deal to increase purchases from US partners. The move comes about a week before a pause on what US President Donald Trump calls "reciprocal tariffs" expires. Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto said the pact will be signed on July 7th. The agreement includes expanding US energy and agriculture imports, as well as boosting investment. He also said by buying more goods from the US, Indonesia hopes to secure a lower levy. The Trump administration had announced a 32 percent "reciprocal tariff" on Indonesia, saying the country enjoyed a trade surplus of nearly 18 billion dollars. When asked about reaching a trade agreement with the US, Airlangga said, "Let's just wait." US tariff talks have been intensifying. Vietnam announced Thursday it is finalizing a trade deal with the US.
Arab News
30-05-2025
- Business
- Arab News
Pakistan formally initiates talks with US on ‘reciprocal tariffs' amid export concerns
KARACHI: Pakistan has formally begun negotiations with the United States over newly imposed 'reciprocal tariffs,' an official statement said on Friday, with Finance Minister Muhammad Aurangzeb holding a conference call with US Trade Representative Ambassador Jamieson Greer to launch the process. The talks come after US President Donald Trump imposed steep tariffs on a number of countries earlier this year, a move widely viewed as a setback for the global economy still recovering from the coronavirus pandemic. Defending the action, Trump said the tariffs were necessary to correct trade imbalances and counter what he described as unfair treatment of American goods abroad. Pakistan was among the countries affected, with a 29 percent tariff placed on its goods at a time when Islamabad is pushing for export-driven growth. Aurangzeb called the development both a challenge and an opportunity to reset trade ties in April, adding that a high-level delegation would soon travel to Washington to pursue the matter further. 'Pakistan's formal negotiations on US reciprocal tariffs kick-started between Mr. Muhammad Aurangzeb, Pakistan's Finance Minister and Ambassador Jamieson Greer, United States Trade Representative through a telephonic/conference call on 30th May, 2025,' the finance ministry said. 'The two sides exchanged their viewpoint through a constructive engagement with the understanding that technical level detailed discussions would follow in the coming few weeks,' it added. The ministry said both sides expressed confidence in advancing the negotiations toward a successful conclusion at the earliest. The US is Pakistan's largest export destination, and the newly imposed duties threaten to undermine Islamabad's fragile economic recovery. According to Pakistan's central bank, the country exported $5.44 billion worth of goods to the US in 2024. From July to February of the current fiscal year, exports to the US reached $4 billion, up 10 percent from the same period last year. Nearly 90 percent of those exports are textiles, which analysts say will be hardest hit. Experts have also warned previously the tariffs could reduce Pakistan's competitiveness, especially if regional exporters such as China, Bangladesh and Vietnam redirect more goods to Europe, intensifying competition in alternative markets.
