Articles tagged with “tradetensions”

The International Monetary Fund warned Tuesday that President Donald Trump's tariff policies and retaliatory measures from trading partners could severely impact global economies, with the US facing significant damage. Global growth is projected to slow to 2.8% this year, down from 3.3% in 2023, marking a sharp decline below historical averages. The US economy is expected to grow just 1.8% in 2025, a steep drop from 2.8% in 2024. These forecasts are gloomier than January's estimates, reflecting the effects of recent tariff hikes pushing import taxes to century high levels.

Chinese President Xi Jinping's tour of Vietnam, Malaysia, and Cambodia has sparked U.S. criticism as he advocates for free trade in a region facing high American tariffs. During his Vietnam visit, agreements on supply chains and a joint railway were signed. U.S. President Donald Trump accused Xi of seeking ways to undermine U.S. interests. Vietnam faces a potential 46% U.S. tariff on imports, threatening its tech manufacturing sector, which includes factories for Samsung, Intel, and Apple suppliers. The U.S. has granted a 90day negotiation period before tariffs take effect, prompting Vietnam to seek a bilateral trade deal. Vietnam's rise as a tech manufacturing hub began in 2008 with Samsung's first smartphone factory. The U.S.China trade war further boosted its appeal, attracting major firms like Apple, Foxconn, and Lenovo. However, recent global demand slumps led to job cuts, forcing workers to pivot to other industries. During the pandemic, Vietnam enforced strict factory lockdowns to maintain production. China's zeroCovid policies later drove more manufacturers to Vietnam. Experts warn that new U.S. tariffs could disrupt Vietnam's economy, given its reliance on Chinese components. The temporary tariff pause offers little longterm security for the sector.

LVMH CEO Bernard Arnault urged European leaders to reduce trade tensions with the U.S. amid ongoing tariff disputes initiated under former President Donald Trump. Addressing shareholders at the company's annual meeting, Arnault stressed the importance of constructive negotiations. He cautioned that inaction by Europe could lead to significant economic repercussions for the region.