Articles tagged with “ustariffs”

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.

Fitch Ratings warns that new U.S. tariffs could negatively impact credit metrics for several AsiaPacific sovereigns, with Sri Lanka among the most vulnerable. The agency predicts slower Asian economic growth due to reduced exports and investment amid trade tensions. Policy responses by regional governments will play a crucial role in mitigating the effects on sovereign ratings. Fitch notes that currency interventions to counter depreciation pressures may shrink foreignexchange reserves. Countries with weaker external buffers, including Bangladesh, Sri Lanka, and Vietnam, face heightened credit risks if export earnings decline due to tariffs. The agency highlights uncertainty as a key factor weighing on the region's economic outlook.

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.

Sri Lanka's sovereign bond yields surged in April following U.S. President Donald Trump's announcement of 44 percent tariffs on the island nation, later suspended for 90 days. The yield on a 2028 bond dropped below 7 percent, while GDPlinked bonds due in 2030 and 2033 saw sharp increases, according to central bank data. Governancelinked bonds, previously trading around 1 percent, exceeded 11 percent. Sri Lanka's bonds, known for low liquidity, experienced significant volatility amid broader market pressures. Rising U.S. Treasury yields, driven by budget deficits and trade policies, further strained emerging market debt. Analysts note reduced foreign demand for U.S. Treasuries, particularly from China, which once held $1.2 trillion in U.S. debt but has since cut reserves to around $700 billion. The freezing of Russia's reserves also disrupted markets, forcing the Bank of Russia to float its currency at 22 percent interest rates.