Latest news with #tradepolicy
CNA
11 hours ago
- Business
- CNA
Impact of tariffs not temporary, world will not go back to status quo: SM Lee
SINGAPORE: The world will not go back to 'status quo', or what it was like before US President Donald Trump rolled out tariffs, said Senior Minister Lee Hsien Loong on Tuesday (Jul 15). 'In trade policy, economic policy, once you make a move, you can't take it back. There are consequences,' he added. Mr Lee was speaking in a wide-ranging dialogue that went into geopolitics, climate change and domestic issues at a dinner held by the Economic Society Of Singapore (ESS). His comments came in response to a suggestion that the impact of the tariffs might be temporary, or lasting only while the current US president remains in office. 'When you first put in the tariffs, everybody complains,' he said. For example, those who need steel will ask why steel is so expensive and those who make chips will ask why they can't sell them to China, said Mr Lee in the dialogue with ESS president Euston Quah. 'But once you have put in the tariffs, and once new players come who depend on the tariffs and need the tariff protection, and you say 'I'm taking the tariffs away, we're going back to where we were', it's politically not possible.' When asked if Singapore is 'not so badly affected yet', Mr Lee quoted a Chinese idiom: 'The person who retreated 50 steps from the battle laughs at the person who retreated 100 steps, and says, 'you're worse off than me'.' While Singapore has a free trade agreement with the US, the US has decided that Singapore will face 10 per cent tariffs. 'We console ourselves, that that is the best rate, and we hope that we stay there,' said Mr Lee. Referencing Trump's move to withdraw the United States from the Paris climate deal, Mr Lee noted that from an economic perspective, the climate is a common resource, and global warming is inherently a "very difficult problem" to solve. The world may need to solve it by coming together and solving it collectively, he added. 'But when you do it collectively, there's always the risk of somebody opting out and saying 'sorry, you carry on, I will just free ride on your hard work and your sacrifices',' said Mr Lee. 'And whether or not one big country opts out from the Paris agreement, we have the risk of a free rider.' Even if one country opts out, the other countries should 'do the sensible things', he added. But even like-minded countries who come together have disagreements among themselves about the rules that will reduce their emissions, said Mr Lee. Some Southeast Asian countries have already said if America is going to be like this, they would have to reconsider their commitments, he noted. Singapore is trying to be a good global citizen and do its part so that it is in 'good standing' and not free riding on other people, he added. When asked about a new framework for the global economy, Mr Lee said: 'I suppose the best framework is the world temporarily minus one.' This means the framework mostly remains, while America still has to do business with the rest of the world, he added. 'But, well, for the time being, you wish the rules were different, and you are trying your best to change it. Temporarily, meaning maybe at some point you can come back and participate again in a more open and constructive way,' said Mr Lee. SHORT-TERM POLITICS Mr Lee also responded to a question about the risks of having 'short-term' leaders who are more 'risk-averse'. Most of the time, it is easier to be a leader who oversimplifies issues and offers a faster solution compared to one who 'gives you a long exposition more suited to the Economics Society', he said. Good leadership must have trust, as well as the ability to have political debate in the public arena, which is anchored on logic, reality and what the evidence shows, instead of what is 'politically expedient', said Mr Lee. Leaders need to understand complex economic issues, but are publicly able to express these issues in a way that is 'maybe stripped down', but sufficient for people to accept and have faith in them, he added. Responding to another question about how young Singaporeans should define success in today's society, Mr Lee said it is for young Singaporeans to define what they would like success to mean, adding that they were born with 'all the advantages' that their parents were not born with. The standard of living and opportunities for education have grown, Mr Lee said, adding that there are jobs available to Singaporeans all over the world. 'What do you want to make of your life, for yourself, for your family, for your country, for your fellow human beings?' he asked. "There are so many things you can do. Do not lie flat ... If you lie flat after a while, I hope you're ashamed of yourself," he added.
France 24
13 hours ago
- Business
- France 24
US banks see lower recession risk despite tariff fog
Executives from JPMorgan Chase and Citigroup described US consumers as still fundamentally healthy despite continued risks to the outlook. Both banks now see a lower risk of recession compared with April, when they last reported results. Top officials with the banks also characterized clients as less frazzled by President Donald Trump constantly changing trade policy compared with April, when financial markets were in turmoil. In the last week alone, Trump has threatened deep tariffs on some two dozen countries and spoken of new levies on copper and pharmaceuticals -- announcements that many market watchers remain skeptical will be enacted in light of previous tariff pivots by the US president. "The corporate community ... has sort of accepted that they just need to navigate through this and are kind of getting on with it," JPMorgan Chief Financial Officer Jeremy Barnum told reporters on a conference call. Citigroup CFO Mark Mason said businesses had acquired more "comfort with the uncertainty" compared to recent months. "The general sentiment has improved a bit if you look at things like the prospect of a recession, that has fallen significantly from what it was earlier in the second quarter," Mason told reporters on a conference call. Soft landing eyed At JPMorgan, second quarter profits came in at $15 billion, down 17 percent from the year-ago period when results were boosted by a one-time equity item. But that translated into $4.96 per share, compared with $4.49 projected by analysts behind higher profits in operating divisions. Revenues were $44.9 billion, down 11 percent from the year-ago period. In Q2 2025, JPMorgan benefited from higher asset management fees, as well as increased trading revenues amid financial market volatility during stretches of the quarter. These aspects helped offset higher technology expenses. JPMorgan chief executive Jamie Dimon said investment banking activity had started slowly in the quarter, "but gained momentum as market sentiment improved," resulting in a seven percent gain. Dimon described the tax cut extensions Trump recently signed into law as "positive" for the economic outlook, along with "potential deregulation," according to a statement. "However, significant risks persist –- including from tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices," Dimon said. "As always, we hope for the best but prepare the Firm for a wide range of scenarios." During a conference call with reporters, Dimon said the cautious comments related to possible outcomes and were not a prediction. "The world is kind of pricing in a soft landing," he said. "We've been in that soft landing and it may very well continue." At Citi, profits came in at $4.0 billion, up 25 percent from the year-ago level, while revenues rose eight percent to $21.7 billion. Profits were boosted by higher markets revenue and investment banking fees, among other areas. Mason described the macroeconomic outlook as improved from April, which points to the "underlying strength" of the US private sector and capital markets. "We do anticipate further consumer cooling the second half (of 2025) as tariff effects play through," Mason said, while adding that "the global economic performance has been quite resilient." Shares of JPMorgan were flat at mid-morning Tuesday, while Citigroup rose 2.1 percent.
Reuters
17 hours ago
- Business
- Reuters
Singapore c.bank warns of slower growth in second half of 2025
SINGAPORE, July 15 (Reuters) - Singapore's economic growth is likely to slow in the second half of the year despite a better-than-expected performance in the first half because of uncertainties over tariffs, the head of its central bank said on Tuesday. Monetary Authority of Singapore (MAS) managing director Chia Der Jiun, speaking during the release of the central bank's annual report, said this was in line with the central bank's expectations of slower global economic activity and weaker external demand. Chia said there was considerable uncertainty given the range of potential outcomes. "There is a range of possibilities around the extent and scope of tariffs, whether trade agreements are concluded and prove to be durable, and whether escalating trade conflicts recur," he said. On Monday, the city-state reported preliminary growth of 4.3% for the second quarter compared to a year earlier, pegged to the front-loading of exports during a pause in U.S. tariffs. The trade ministry in April downgraded the city-state's GDP forecast for 2025 to a range of 0% to 2%, down from 1% to 3%. "Consumption and investment will likely soften in the months ahead," said Chia. U.S. President Donald Trump last week notified more than 20 countries of tariff rates of 20% to 50% that will kick in from August 1, warning that any reprisals would draw a like-for-like response. Singapore has not yet received a letter from the Trump administration this round and its exports are still subject to the 10% baseline tariff announced in April. Chia told the media briefing that the MAS made a net profit of S$19.7 billion ($15.38 billion) in the 2024/25 financial year. Assets under management in Singapore grew 12.2% year-on-year to exceed S$6 trillion for the first time. "Singapore continues to be a trusted and attractive wealth management centre underpinned by high standards of regulation," said Chia. The MAS this month gave penalties of $21.5 million to nine financial institutions, including Citibank, Julius Baer and UBS, for their role in the 2023 S$3 billion money laundering case. "Our financial eco-system will be tough on suspicious and illegitimate monies, but welcoming and efficient to legitimate wealth," Chia said. ($1 = 1.2811 Singapore dollars)
Bloomberg
18 hours ago
- Business
- Bloomberg
Tariffs Are No Longer Just About Trade
When the White House postponed its so-called reciprocal tariffs to the start of next month, many hoped that its aggressive new trade policy would moderate. Financial markets had protested, it seemed, and the administration had learned its lesson. Any eventual tariffs would be much lower than threatened and uncertainty would surely abate. No such luck.
Bloomberg
6 days ago
- Business
- Bloomberg
Trump Tariffs 'Pure Revenge and Illegal': Trade Expert
Georgetown Law Professor, Jennifer Hillman, says President Trump's planned 50% tariff rate on Brazil was done out of "pure revenge." Speaking to Bloomberg's Insight with Haslinda Amin, she also discussed why she believes Trump's landmark trade policy is "unlawful." (Source: Bloomberg)
