international economics – Sanggraloka Wisata Nusantara

Pakistan’s Services Exports Jump 9.23% to $8.39 Billion

oleh admin | Agu 25, 2025 | business, exports, international economics, international trade, pakistan

August 10, Pakistan – Exports of services in Pakistan saw notable growth during the financial year 2025, amounting to $8.39 billion, largely driven by robust activity in telecom, computing, and information sectors. This represents an increase of 9.23% compared to the previous year’s figure of $7.68 billion, as reported by the Pakistan Bureau of Statistics (PBS). The rise indicates ongoing revival and development within the service industry, which has experienced continuous improvements since February 2024, with only a short drop of 6.5% recorded in August.

Service exports increased by 7.86% in rupees, amounting to Rs 2.345 trillion as opposed to Rs 2.174 trillion from the prior year. This upward movement remained consistent even amid changes in exchange rates, highlighting strength within the industry. Year-over-year figures for June showed an increase of 12.91%, with service exports totaling $726.68 million versus $643.59 million during June 2024. Much of this growth stems from tech-based services, which still hold a leading position in Pakistan’s export mix.

According to figures released by the State Bank of Pakistan, the telecommunications, computing, and information services sector—the biggest contributor among service exports—increased by 18.18% to reach $3.809 billion, compared to $3.223 billion in the previous year. Additional professional services saw an upward trend as well, with a growth rate of 7.35%, amounting to $1.665 billion. Meanwhile, export earnings from transportation services climbed by 27.86% to $982.0 million due to increased needs related to shipping and freight operations. On the contrary, revenue generated through travel-related services declined by 4.88%, settling at $721.0 million down from $758.0 million.

This expansion follows two years of modest progress, during which service exports increased by just 2.77% in FY2024 and 2.78% in FY2023. For FY2023, export values reached $7.30 billion, up from $7.10 billion in FY2022. The administration has established an aggressive objective of boosting IT exports to $15 billion over the coming five years, seeking to position the digital sector as a major catalyst for upcoming economic development.

On the import front, service imports grew by 2.01% during FY2025, rising to $11.02 billion from $10.79 billion in the previous fiscal year. Nevertheless, in June, imports fell significantly by 24.01% compared to the prior year, amounting to $851.56 million as opposed to $1.122 billion in the same period last year. Transportation fees experienced a minor decrease of 0.68%, totaling $4.645 billion, whereas travel imports went up by 6.17% to reach $2.406 billion, indicating higher levels of domestic tourism and international travel.

Although imports increased, Pakistan’s trade deficit in services decreased by 15.84% during fiscal year 2025, dropping to $2.618 billion from $3.11 billion in the previous year. The decline persisted in June, as the deficit fell by 73.9% compared to the same period last year, reaching $124.89 million versus $478.41 million in June 2024. This progress reflects the beneficial effect of robust exports alongside reduced expenditure on imports.

European Markets Rise as Hopes for Trump Tariff Exemptions Surge

oleh admin | Apr 17, 2025 | automotive industry, business, commerce, financial markets, international economics

U.S. President Donald Trump has suggested possible leniency regarding auto tariffs to provide automakers with “some breathing room” to relocate their manufacturing processes back to the United States. This statement came after he decided to grant a temporary reprieve for electronics from new levies, which represents another move away from the broad-ranging trade tariffs initially proposed earlier this month.

I’m seeking assistance for certain automobile manufacturers who are transitioning to components produced in countries like Canada and Mexico,” he stated at the Oval Office on Monday. “These companies require a short period as these items will be manufactured domestically.

On April 3rd, the Trump administration introduced 25% tariffs on imported automobiles. As reported earlier by Bloomberg, prominent automakers such as Ford Motor, General Motors, and Stellantis NV (the parent company of Chrysler) have been advocating for exceptions regarding specific inexpensive automotive parts. These components might otherwise be subjected to extra duties beyond the standard 25% tariff rate when they come from countries outside the United States.

In the meantime, the U.S. Department of Commerce issued an announcement indicating that they have launched inquiries into the semiconductor and pharmaceutical industries. These investigations are conducted under Section 232 of the national security investigation guidelines, which suggests the possibility of additional tariffs being imposed on these sectors. This development contributes to the growing ambiguity around President Trump’s tariff plans.

Following Trump’s statement that exceptions on electronic goods would be short-term and his assertion that “NOBODY will escape ‘being held accountable’ for the unjust trade deficits” on Sunday, these investigative alerts were issued.

The semiconductor review document stated its objective to “assess the impact on national security from imports of semiconductors and semiconductor manufacturing equipment (SME), along with related goods.” Meanwhile, the pharmaceutical inquiry will focus on evaluating imports including “completed medications, medical countermeasures, essential components like active pharmaceutical ingredients, crucial raw materials, and associated derivatives of these items.”

European markets advance as automakers anticipate potential relief

Following President Trump’s remarks hinting at potential leniency regarding auto tariffs, European markets began the day marginally stronger. By approximately 9:30 am Central European Summer Time, share prices showed an overall uptick, with Germany’s DAX rising by 0.9%, the UK’s FTSE 100 climbing by 0.7%, and the STOXX 600 increasing by 0.6%. However, France’s CAC 40 saw a dip of 3%.

Shares of European automobile companies might see an upside due to changes in U.S. policies after experiencing significant declines over the last month. Specifically, stocks of key German automotive firms such as Volkswagen (VW), BMW, Porsche, and Mercedes-Benz have dropped by approximately 15-18% within this timeframe. As of Tuesday morning, VW saw a rise of 3.7%, BMW surged by 3.8%, Porsche increased by 2%, and Mercedes-Benz jumped by 3.8%.

Nonetheless, European tech and pharma companies might encounter increased stress because of U.S. investigations into semiconductors and drugs. Notably, Denmark-based pharmaceutical heavyweight Novo Nordisk could come under greater examination since the United States represents its biggest individual market for its weight loss medication. The company experienced its sharpest drop-off over one month in March following several unsuccessful clinical trials. Additionally, investor worries have escalated due to President Trump’s warning about tariffs on pharmaceutical goods, potentially impacting profitability.

In the realm of technology stocks, ASML—which stands as Europe’s leading producer of semiconductor manufacturing equipment—is set to draw significant attention prior to the release of its financial outcomes on Wednesday. The company’s shares climbed by 2.8% during early trading on Tuesday.

The euro remains strong due to safe-haven demand.

During Tuesday’s Asian trading session, the euro remained robust above 1.13, reaching its highest position since 2022. As a safe-haven currency, the euro has gained traction due to Trump’s tariffs causing trade disruptions, leading to increased risk aversion across international markets throughout this last month. On Monday, the EUR/USD pairing peaked just over 1.14 before potentially continuing its upward trajectory fueled by ongoing economic instability.

The European Central Bank (ECB) is anticipated to announce its third successive reduction in interest rates this Thursday, further supporting the accommodating monetary policy of the Eurozone due to persistent threats.

On Tuesday morning, the euro increased slightly against the dollar, rising by under 1%.

Trump’s Tariffs Trap Asia’s Economies

oleh admin | Apr 3, 2025 | asia, commerce, economics, international economics, international trade

The significant exporters of Asia, such as China, Japan, and Vietnam, are likely to suffer more from the broad array of new tariffs announced by the U.S. President.

President Donald Trump presented a flurry of
sweeping reciprocal tariffs
On Wednesday, regarding U.S. trade partners, he presented it as the beginning of a new “Golden Age,” during which industrial and manufacturing roles would flood back into the nation.

This shift is viewed as a dramatic deviation from the long-standing agreement on the advantages of unrestricted trade and globalization that has existed for many years.

It could prompt
Other nations to declare counter-measures
And establish trade barriers, possibly sparking a fresh wave of trade protectionism.

Asia’s export powerhouses, including
China, Japan, South Korea
and Vietnam have faced some of the highest tariffs as well.

Is it likely to develop into an all-out trade war?

Trump is hitting imports from China with a 34% tariff, on top of the 20% levies, he had already imposed since returning to the White House in January.

This indicates that the overall tariff rate on imports from China will increase to 54% next week, once the new tariffs come into play on April 9. These changes pose a threat to the roughly $582.4 billion (€524 billion) in bilateral trade recorded last year, during which the U.S. shipped products valued at $143.5 billion to China, whereas Chinese exports to America amounted to $438.9 billion.

Beijing strongly criticized the decision and
vowed retaliation
.

A cycle of reciprocal tariffs might deepen the conflict between the world’s leading economic powers and disrupt international supply networks.

This might also make it more challenging for Beijing to achieve their aim of fostering economic growth, which they have set around 5% for 2025.

“We believe these tariffs might spark protectionist tendencies and deal a significant setback to the global economy,” stated Fang Dongkui, the secretary general of the China Chamber of Commerce to the EU, urging for dialogue rather than conflict between the U.S. and its trade allies to address their differences.

Fang emphasized the importance of enhancing collaboration between China and the EU to uphold the multilateral trading system.

“Both China and the EU have export-driven economies. It’s crucial for us to enhance our collaboration at this moment. An unpredictable world desperately requires greater stability,” Fang stated to SANGGRALOKA.

Japan expresses disappointment yet remains wary of potential reprisals.

Trump is imposing a 24% tariff on China’s neighbor Japan, the world’s fourth largest economy,
despite Japanese diplomatic efforts
To obtain an exception from the new tariffs.

Trump has also claimed Japan imposes a 700% tariff on US rice imports. Japanese Agriculture Minister Taku Eto said the figure was “illogical.”

Prime Minister Shigeru Ishiba stated that Tokyo was “deeply displeased” with the US tariff announcement and vowed to assist local industries in coping with the consequences.

As planned, a 25% duty was imposed on all imported vehicles starting Thursday in the United States, raising significant worries within the Japanese automotive sector. This industry contributes approximately 3% to Japan’s GDP and has direct and indirect ties to around 8% of employment across the country.

However, Tokyo seems hesitant when it comes to retaliatory measures. As reported by Reuters, Trade Minister Yoji Muto stated, “It is essential we determine the course of action that serves Japan’s interests best and proves most efficacious through a process that is both prudent yet decisive and swift.”

What about ‘ tariff king’ India?

As he unveiled the tariffs at the White House on Wednesday, Trump stated that India’s Prime Minister, Narendra Modi, was responsible for the situation.
Modi was a “close companion”
but that he hadn’t been “behaving properly toward us.”

Trump had previously

criticized India’s trade policies

, referring to the country as a “chief tariff setter,” a “major violator” of trade relations, and “a nation with extremely high tariffs.”

Starting April 9, the United States will impose tariffs of around 27% on imports coming from the South Asian country.

These tariffs dealt a significant setback to New Delhi, as India is simultaneously engaged in discussions with the Trump administration aimed at reaching a bilateral trade agreement.

India’s biggest trading partner is the United States, where their yearly commerce in goods totals $129.2 billion as of 2024, as reported by the US Trade Representative Office.

Despite selling more than $87 billion worth of goods to the United States, India’s imports from America totaled only $41.8 billion, resulting in a trade surplus of $45.7 billion for New Delhi.

After Trump’s declaration, India adopted a more amicable stance, stating it was assessing the effects of the tariffs on its imports and affirming its commitment to continuing discussions aimed at finalizing a trade deal before the end of the year.

Lekha Chakraborty, who teaches at the National Institute of Public Finance and Policy in New Delhi, opined that although there might be short-term fluctuations, bilateral talks have the potential to mitigate lasting harm.

She informed SANGGRALOKA that textiles, engineering products, electronics, gemstones, and jewelry exports immediately confront competitiveness issues because of increased US duties.

She highlighted several compromises made by the Modi administration recently, encompassing reductions in tariffs for items like premium motorcycles and whisky, along with commitments to increase purchases of American energy resources and weaponry.

Chakraborty stated that India’s recent moves, which include reducing duties on 8,500 products and increasing imports of U.S. energy and defense goods, are intended to decrease the $46 billion trade gap and finalize a mutual trade deal.

Do tariffs disrupt Southeast Asia’s ‘China+1’ strategy?

Southeast Asia has also come under Trump’s focus.
, where six of the area’s economies are subject to duties ranging from 32% to 49%.

In recent years, countries such as Vietnam and Thailand have become significant suppliers to the U.S., with numerous international companies relocating their manufacturing operations to these locations as part of their strategic shifts.
“China+1” strategies
to expand their supplier networks.

For example, Vietnam has become a key manufacturing hub for international giants such as Apple, Samsung, and Nike. Last year, it shipped products valued at $142 billion to the United States, representing approximately 30% of its overall economic production.

Meanwhile, Washington’s trade deficit with Vietnam ranks as the third-largest for any nation, following China and Mexico.

Trump now announced a 46% tariff rate on US imports from the country, putting in jeopardy Vietnam’s attractiveness.

Khac Giang Nguyen, a visiting fellow at the ISEAS Yusof Ishak Institute, informed SANGGRALOKA that Trump’s punitive tariffs have minimal connection to the realities of bilateral trade operations.

Although the tariffs “are likely meant as a bargaining strategy, they are so vastly different that there isn’t much basis for mutual agreement,” Khac pointed out.

The Vietnamese Prime Minister declared the formation of a “swift reaction squad” to address the consequences following the tariff announcement.

The Deputy Prime Minister Ho Duc Phoc is also scheduled to travel to Washington next week.

Nonetheless, the prevailing sentiment suggests reversing the tariffs will be challenging because Vietnam would have to amend more than just its import duties on goods from the United States, which it has recently begun adjusting. It must also overhaul numerous additional laws affecting various facets of commerce with each nation around the world.

Vietnam’s trade-driven economy is poised for significant disruption, with consequences extending beyond national boundaries,” Khac stated. “This aggressive action threatens to dismantle years of careful work aimed at restoring US-Vietnam trust following decades of conflict. This kind of erosion can’t be quickly mended once it occurs.

Prioritizing negotiation over retaliation

A neighboring country in Southeast Asia, Indonesia, will encounter a 32% tariff rate, potentially leading to an economic downturn, according to Bhima Yudhistira, who serves as the executive director at the Center for Economic and Law Studies (Celios).

He is equally concerned about an increase in beggar-thy-neighbor policies as nations search for alternate markets to make up for the decrease in US demand for their goods.

“If textile and apparel companies face increased tariffs, they will decrease their orders from Indonesian factories. At the same time, locally, we’ll see an influx of goods from Vietnam, Cambodia, and China as these countries aim for new market opportunities,” he explained.

Meanwhile, Singapore complained about being affected by Trump’s 10% baseline tariff on imports, even though the US had a $2.8 billion trade surplus with the wealthy city-state last year.

Cambodia — which suffered greatly from the previous 49% tariff increase — stated that Trump’s new duties are “unreasonable.”

Taiwan, boasting a substantial $73.9 billion trade surplus with the United States, argued against the proposed 32% tariffs from Washington as unjustified. It’s worth noting that these new U.S. duties will not affect semiconductors, one of Taiwan’s key exports.

Even though tariffs cause distress, governments in Southeast Asia seem more willing to engage in talks with US officials rather than respond symmetrically.

“We have to negotiate and get into details,” said Thai Prime Minister Paetongtarn Shinawatra, Reuters reported. “We can’t let it get to where we miss our GDP target.”

Cui Mu from SANGGRALOKAChinese,

Murali Krishnan from New Delhi, Julian Ryall from Tokyo,

Yusuf Pamuncak from SANGGRALOKAdonesia

and David Hutt

contributed to this report.

Edited by: Wesley Rahn

Author: Srinivas Mazumdaru

Markets Tumble Globally as Trump Tariffs Send Shockwaves Through the World Economy

oleh admin | Apr 3, 2025 | economics, global economy, international economics, international trade, politics

Global leaders are responding with concern, warnings of potential retaliatory actions, and demands for rapid talks to ensure more equitable trade regulations following the announcement of extensive new tariffs by U.S. President Donald Trump. However, their preliminary steps indicate caution, as major trading partners aim to prevent an all-out trade war with the largest economic power worldwide.

Asian markets declined during Thursday’s trading session, and U.S. futures plummeted, indicating potential turmoil ahead in the American market as investors prepare for possible economic disruptions.

In his “Freedom Day” proclamation, Trump stated that these tariffs, which range between 10% and 49%, would reciprocate how U.S. trading partners have historically treated America, ultimately luring industries and employment opportunities back to the United States.

The European Commission President, Ursula von der Leyen, stated that these actions represent a significant setback for the global economy. Meanwhile, Japanese Prime Minister Shigeru Ishiba warned of their substantial effect on U.S.-Japan ties. Additionally, South Korea’s Prime Minister, Han Duck-soo, urged for urgent steps to assist sectors impacted by the new tariffs.

___

Here’s the latest:

Norway’s Foreign Minister states that tariffs adversely affect NATO allies.

Norway’s Foreign Minister Espen Barth Eide stated that the additional U.S. tariffs could be at odds with NATO’s Article 2, an agreement that underscores the significance of economic collaboration amongst member nations as a means to prevent conflicts.

“If you desire a robust NATO, it’s essential to foster maximum economic growth within member nations. This idea was central to the founding members, believing that economic collaboration would benefit the whole alliance,” Eide stated during a trip to Brussels for a NATO conference, as reported by the NRK broadcaster.

Eide informed NRK that he plans to address the tariff dispute with U.S. Secretary of State Marco Rubio during their meeting.

The Polish Prime Minister states that tariffs might reduce GDP by 0.4%.

The Polish Prime Minister, Donald Tusk, stated that the newly imposed US tariffs could decrease Poland’s GDP by 0.4%.

He said it was “a severe and unpleasant blow, because it comes from the closest ally, but we will survive it.” The Polish-U.S. friendship, he added, “must also survive this test.”

The Spanish Prime Minister unveils steps to counteract US tariff impacts

On Thursday, Spanish Prime Minister Pedro Sánchez announced that his administration plans to introduce an expenditure program worth $15.6 billion (or 14.1 billion euros) aimed at alleviating the impacts of U.S. tariffs on Europe’s fourth-biggest economy in terms of the eurozone.

The head of Spain referred to the tariffs as “19th-century protectionism,” stating that both the European Union and Spain needed to take proactive steps and broaden their economic relationships across the globe to counter this approach.

Sánchez additionally urged for a negotiated resolution with the U.S., stating, “Once more, we urge President Trump to reassess his position and join us at the negotiation table alongside the European Union and other global partners.”

Australia baffled by tariffs imposed on distant island territories

The head of the local administration in Christmas Island, one of multiple external Australian islands territories which, similar to Australia, face a 10% US tariff, mentioned that their Indian Ocean outpost does not export anything to the United States.

The small Australian settlement with a population under 2,000 residents, located approximately 360 kilometers (225 miles) south of Indonesia’s capital city Jakarta, has been extracting phosphate using American heavy equipment for many years, according to Christmas Island Shire President Gordon Thomson.

The uninhabited Heard and McDonald Islands, located far in the Antarctic and part of Australia’s territories, also fall under the 10% tariff. These largely desolate islands feature two active volcanoes and can only be accessed by sea.

The Australian Prime Minister, Anthony Albanese, stated that Australia does not impose tariffs on goods imported from the United States. Additionally, he highlighted their bilateral free trade agreement between the two nations.

Hong Kong appeals to the U.S. to remove tariffs.

Hong Kong vehemently objected to the additional tariffs introduced by Trump and requested the United States to revoke them. They stated that as a free port, Hong Kong consistently upholds the principles of free trade and does not levy tariffs on imports, which includes products coming from the U.S.

The report indicated that the U.S. maintained a trade surplus of $271.5 billion with the semi-autonomous Chinese region throughout the last ten years, making it the largest surplus compared to all other international trading partners.

Hong Kong’s government stated that the U.S. imposition of tariffs on Hong Kong goods under the guise of reciprocal tariffs makes no sense,” and mentioned they will respond by taking actions such as lodging complaints at the WTO.

Hong Kong, which was previously under British rule and reverted to Chinese control in 1997, operates with an independent economic and political framework compared to mainland China, enabling it to establish its own policies for much of the time.

India aims to speed up trade negotiations with the US.

India’s Commerce Ministry is evaluating the recent tariffs imposed by President Donald Trump. The Indian government aims to speed up discussions for a potential trade deal with the U.S., hoping to secure certain advantages and mitigate the effects of increased duties on imports.

The accord, with the initial segment slated to come into effect by autumn, aims at facilitating increased commerce, investment, and technological exchanges between the two countries. It also seeks to strengthen their supply chains further, according to the statement.

They stated, ‘We continue to maintain communication with the Trump administration and anticipate progressing with them in the upcoming days.’

In 2024, the United States became New Delhi’s largest trading partner, with trade valued at approximately $129 billion. The two nations have now established an ambitious goal to nearly triple their bilateral trade to over $500 billion by the year 2030.

The Vietnamese stock market declines sharply as people flock to purchase gold.

On Thursday, Vietnam’s stock market experienced a sharp decline as gold prices surged to an all-time peak following U.S. President Donald Trump imposing a 46% tariff on Vietnamese goods. In response, residents queued up to purchase gold in Hanoi even though the costs were elevated.

“Gold investment might pose less risk due to the current economic uncertainty,” stated Nguyen Trung, a purchaser.

Dan Martin, an international business advisor at Dezan Shira & Associates, noted that Vietnam has recognized its excessive dependence on the United States and has taken steps towards diversification by entering into free trade deals with more than a dozen nations.

The message is evident now: depending on Vietnam as a U.S. export market isn’t secure,” he stated.

The apparel and sportswear sector, featuring well-known brands such as Adidas and Nike, will be particularly affected. Last year, Nike produced roughly half of its footwear and approximately one-third of its clothing items in Vietnam. Meanwhile, Vietnamese manufacturing facilities accounted for 39% of Adidas’s shoe production and 18% of their garment output.

Tariffs imposed by the U.S. on products from Vietnam rank among the highest compared to those levied on any other nation.

Vietnam’s Prime Minister Pham Minh Chinh stated that the nation was still aiming for an economic growth rate of at least 8%, even with the Trump administration levying 46% duties on its exported goods.

On Thursday, Chinh led a Cabinet meeting to evaluate the effects of the tariffs, which stand as some of the highest ever placed on any nation. He expressed that Vietnam hopes the U.S. policies will remain “in line with the strong relationship shared by both countries.” Additionally, he mentioned that Vietnam continues to address the lingering impacts from their prolonged conflict.

The tariffs will have a significant impact on Vietnam because the U.S. represents its biggest export destination. In 2021, exports to the United States, amounting to $142 billion, constituted one-third of Vietnam’s gross domestic product.

The Ukrainian minister states that her nation could secure more advantageous tariff terms from the United States.

The Ukrainian Economy Minister, Yuliia Svyrydenko, stated on her X profile that Ukraine is striving for improved tariff terms from the United States.

Svyrydenko states that the tariffs imposed by Ukraine on American products are “relatively minimal,” and notes that in 2024, Ukraine brought in more items from the United States compared to what was sent to America.

She stated that the 10% tariff imposed by Trump on Ukrainian products would primarily affect smaller producers. “Ukraine can provide the U.S. with a dependable alliance and partnership. Implementing equitable tariffs would be advantageous for both nations,” she noted in her writing.

Japanese Prime Minister expresses regret over U.S. tariffs and states readiness to discuss with President Trump.

Japanese Prime Minister Shigeru Ishiba expressed deep dissatisfaction, stating it was “highly unfortunate” that the United States imposed a 25% automobile tariff on Japan, particularly considering Japan’s significant economic contributions to the U.S.

Since 2019, Japanese firms, particularly those in the automotive sector, have been the largest investors in the United States, generating employment opportunities for countless Americans, according to Ishiba.

Ishiba stated that Japan will persistently urge the United States to reassess its tariff policies. He also mentioned his intention to engage in direct talks with Trump when deemed fit. Ishiba emphasized, “Without reservation, I will take action at the optimal moment and manner.”

Germany’s Scholz calls tariffs an ‘assault’ on worldwide commerce

German Chancellor Olaf Scholz describes the tariffs as an “assault” on a trade system that has fostered worldwide prosperity, a framework that was largely shaped by the United States itself.

Scholz stated on Thursday that “the entire global economy will bear the brunt of these ill-conceived decisions.” He further noted that “the U.S. administration is embarking on a path where ultimately everyone will lose.”

Scholz stated in Berlin that “this assault targets a trade system that has fostered prosperity worldwide—a system largely shaped by American endeavors.”

Fiji denounces the tariffs as ‘excessive’ and ‘unequitable.’

In the group of tiny island countries scattered across the South Pacific, several faced elevated duty rates above the standard 10%. On Thursday, Fiji’s Deputy Prime Minister Biman Prasad denounced the recently declared 32% duties on his nation’s goods heading to the United States as both “excessive” and “unequitable.”

The U.S. is a major trading partner for the nation of 924,000 people, accounting for 10% of total imports and exports, Prasad said Thursday on social media. Fiji’s biggest export to the U.S. is bottled water, with its most famous brand — Fiji Water — owned by a U.S. conglomerate.

The U.S. government defended the increased duties on Fiji by stating that the island nation levies 63% tariffs on products coming from America. However, Prasad dismissed this statistic, informing journalists that Fiji does not apply such high duty rates to imports from any nation.

“There are no victors in trade wars,” according to China’s Foreign Ministry.

A representative from the Chinese foreign ministry states, “trade wars and tariff conflicts yield no victors, and adopting protectionist policies will not solve these issues. Instead, the United States ought to rectify its incorrect approaches and address trade disagreements with various nations, such as China, via discussions grounded in parity, mutual esteem, and shared advantage.”

Guo Jiakun further stated that these tariffs contravene WTO regulations, “undermine the shared interests of nations worldwide and fail to address America’s own issues. It has become evident that an increasing number of countries are resisting the United States’ aggressive unilateral moves, including tariff imposition.”

The Israeli finance minister states that his office is ‘examining’ the tariff consequences.

Israeli Finance Minister Bezalel Smotrich says his office is studying Trump’s tariff order and “analyzing its implications for the economy,” in the country’s first reaction to Trump’s announcement of a 17% tariff on imports from Israel.

On Wednesday, prior to Trump’s announcement, Israel decided to eliminate all outstanding tariffs on goods imported from the United States. According to a statement released by the Prime Minister’s Office, this change was set to take place following the final endorsement by both the economy minister and the parliamentary finance committee.

In a statement posted on X, Smotrich mentioned he was discussing Trump’s latest directive with key figures from various industries. He also plans to convene with the leadership of the Finance Ministry on Thursday to determine their “next steps” regarding this order.

Spain’s economics minister states that talks with the US are crucial.

Spain’s Economy Minister Carlos Cuerpo stated that reaching an agreement through negotiations with the United States was crucial for Spain, which holds the position of the eurozone’s fourth-biggest economy. However, he also mentioned that the country is ready to implement measures aimed at safeguarding its businesses and sectors.

“There is a great deal riding on this. We must safeguard the highly significant trade and economic ties we share between the world’s two largest collaborators,” Cuerpo stated during an interview with the RNE radio station on Thursday following the U.S.’s announcement of 20% tariffs targeting the European Union.

The German economics minister states that this day will be known as US Inflation Day.

“Today won’t turn into Consumer Liberation Day in the United States; instead, it will be known as Inflation Day,” stated Germany’s Vice Chancellor and Economy Minister, Robert Habeck. “The U.S.’s obsession with tariffs might trigger a chain reaction leading to global recessions and significant economic harm around the world.”

“We have consistently advocated for negotiations over conflict. This position holds true,” Habeck stated. “Therefore, it’s positive that the European Commission continues to pursue a negotiated agreement with the U.S., as there is still ample opportunity for such talks. However, should the U.S. decline a negotiated path, the EU will respond with a well-balanced, decisive, and firm stance. We are ready for this scenario.”

Germany’s primary industry association urges a unified response to tariffs.

The primary industry association in Germany, the Federation of German Industries, stated that “the European Union needs to bolster its partnerships with significant trading allies and should synchronize its response with these countries. Coordinated action is essential to mitigate potential disruptions in global commerce.”

The organization, recognized by its German abbreviation BDI, stated that the tariffs represent “an unparalleled assault on the international trading system, free trade, and global supply chains.” They find the logic behind this protectionist intensification difficult to understand.

For the first time since 2015, the United States became Germany’s largest individual trading partner last year, pushing China into second place.

UK’s Starmer pledges to respond with ‘level-headedness’ to Trump’s tariffs

Prime Minister Keir Starmer stated that the UK government would respond to Trump’s declaration of a 10% tariff on British imports with “levelheadedness and composure.”

Starmer informed business leaders assembled at 10 Downing Street that there would undoubtedly be economic repercussions, yet he expressed hope for lifting tariffs via a trade agreement with Washington.

“Negotiations on an economic prosperity deal — one that strengthens our existing trading relationship — they continue and we will fight for the best deal for Britain,” Starmer said.

“No one emerges victorious from a trade war; it does not serve our nation’s best interests,” he further stated.

The CEO of Honda states that the company requires some duration to ascertain an appropriate response to the tariffs.

The CEO of Honda, Toshihiro Mibe, states that the company will assess various elements including market conditions before deciding how best to address President Trump’s tariffs.

He told reporters on Thursday that sudden changes like these are challenging because it’s difficult to respond quickly.

Taiwan deems US tariffs as ‘highly unreasonable.’

In response to the implementation of a 32% tariff on Taiwan’s advanced technology sector, the country stated it was “highly unreasonable and deeply unfortunate,” further noting that they would be “formally protesting this action to the United States.”

Cabinet spokesman Lee Hui-chih stated in an official press statement that the suggested tax rate fails to accurately represent the economic and trading relationship between Taiwan and the United States, thereby being unjust to Taiwan.

Lee stated that the methodology used for calculating tariffs was both unscientific and opaque, adding that it fails to capture the significant synergy within the trading dynamics between Taiwan and the United States as well as their genuine trade relations.

Lee mentioned that Taiwan’s exports to the United States and its associated trade surplus have increased considerably over recent years. This growth primarily reflects a rise in demand from American consumers for semiconductors and related items, particularly those involving artificial intelligence technology.

UK authorities indicate their intention to advocate for a free trade agreement with the United States.

The UK government states it will strive for a free trade agreement with the United States instead of retaliating following Trump’s imposition of a 10% tariff on British products.

Dismissing the statement as a “letdown,” Business Secretary Jonathan Reynolds expressed, “While I acknowledge that the UK is in a more favorable situation compared to other nations, my satisfaction level remains low.”

Reynolds informed Sky News that the feedback he received from companies was to “stay at the table and avoid overreaction.”

The UK maintains that its trading relationship with the U.S. is largely balanced and has been engaged in negotiations with Washington to secure a trade agreement aimed at avoiding import duties.

The Japanese Prime Minister states that tariffs will significantly affect U.S.-Japan relations.

The Japanese Prime Minister, Shigeru Ishiba, expresses deep worry over the new tariffs and emphasizes that Japan makes substantial contributions to the U.S. economy through investments and employment opportunities.

He mentioned that he frequently presented arguments to the Trump administration against proceeding with the tariffs.

“Not only will they significantly influence U.S.-Japanese economic ties, but they will also affect the worldwide economy and trade relationships as a whole,” Ishiba stated to journalists on Thursday.

“The government will unite to firmly safeguard citizens’ lives, employment, and economic sectors,” he stated additionally.

Thailand has stated it is prepared to discuss the trade imbalance with the United States.

Following President Trump’s announcement of 36% tariffs on Thailand, the Thai Prime Minister has stated that their nation is prepared to engage in negotiations aimed at achieving an equitable trade equilibrium beneficial to both countries.

Paetongtarn Shinawatra stated on Thursday that Thailand is dedicated to collaborating with the U.S. to attain sustainable economic development.

She emphasized that Thai exporters ought to explore new markets for their goods as well, in order to minimize the risks associated with depending heavily on a single primary market.

Indian experts view possibilities in reshaping supply chains.

Indian exporters and analysts indicate that Trump’s new tariffs present a dual impact for the nation.

Trump announced a reciprocal tariff of 26% for India, as compared to 34% for China, 46% for Vietnam, 37% for Bangladesh and 36% for Thailand.

On Thursday, observers noted that this action is expected to affect Indian industries and put job security at risk. However, they also indicated that there could be opportunities for new businesses due to India being placed in a lower category compared to otherAsian countries.

“These tariffs pose certain difficulties; however, India’s stance continues to be relatively advantageous,” stated S.C Ralhan, who serves as the president of the Federation of Indian ExportOrganizations.

Ajay Srivastava, a previous employee in Indian trade affairs and the founder of the New Delhi-based research organization called the Global Trade Research Initiative, suggested that the protectionist tariff system might act as an accelerator for India to benefit from shifts in international supply chains.

Some of the highest tariffs are imposed on South and Southeast Asia.

Countries such as Vietnam, Sri Lanka, along with various nations throughout South and Southeast Asia, face some of the most significant tariff rates.

Trump introduced reciprocal tariffs of 46% on Vietnamese goods, 49% on Cambodian products, 37% on items from Bangladesh, and 44% on those coming from Sri Lanka.

These responsibilities will impact domestic exporters heading to the U.S., as well as businesses from China, Japan, and South Korea. These firms relocated their manufacturing operations to Southeast Asian countries in recent years to avoid trade tensions prevalent during Trump’s initial presidency.

Stellantis, an automaker company, plans to close its manufacturing facility in Windsor, Canada, for two weeks.

Automaker Stellantis plans to close its assembly facility in Windsor, Canada, for a fortnight starting April 7, according to the local union statement released late Wednesday.

James Stewart, the president of Unifor Local 444, stated that additional scheduling alterations would likely occur over the next few weeks.

The firm stated that several elements are contributing to their situation, with the main factor influencing their ultimate choice being President Donald Trump’s announcement today regarding new U.S. tariffs. “This development has generated significant uncertainty throughout the automotive sector,” Stewart explained. “It isn’t only affecting our facility; operations in both the U.S. and Mexico are also experiencing these impacts.”

EU chief states that tariffs pose significant damage to the global economy.

European Commission President Ursula von der Leyen says the tariffs are a “major blow to the world economy.”

“Millions of individuals worldwide will face severe repercussions,” warned von der Leyen. She added that groceries, transportation, and medications will become more expensive, which particularly impacts those who are most susceptible in society.

von der Leyen admitted that the global trade system has “significant flaws,” and stated that the EU is prepared to engage in negotiations with the U.S.

Japan’s top government spokesman denounces tariffs as “highly unfortunate.”

The top Cabinet Secretary of Japan described the tariffs as “deeply unfortunate” and mentioned that they believed their nation should have been exempted, following President Trump’s imposition of a 24% additional tariff on Japanese goods.

On Thursday, Yoshimasa Hayashi also raised doubts about the compatibility of these tariffs with theJapan-U.S. bilateral trade agreements. He further stated that this action could affect not only their economic relations but also have implications for the broader global economy and the multilateral trading system.

He stated that Japanese officials are still in talks with Washington aiming for an exception. When asked about potential counter-tariffs or possible grievances filed with the World Trade Organization, Hayashi chose not to comment.

Asian markets decline after Trump announces new tariffs

The Nikkei 225 in Tokyo fell over 3.4%, the Kospi in South Korea declined by 1.8%, and the S&P/ASX 200 in Australia decreased by 1.8% as well.

U.S. stocks experienced yet another volatile session ahead of President Trump’s announcement regarding new tariffs on Wednesday. The S&P 500 climbed by 0.7%, the Dow Jones Industrial Average increased by 0.6%, and the Nasdaq Composite jumped by 0.9%.

Tesla shifted from a significant early decline to an afternoon increase, helping to boost the overall market. Meanwhile, treasury yields moved from lower levels to higher ones after a stronger-than-predicted jobs report was released.

▶ Learn more about how markets responded to the tariffs

The House majority whip commended Trump’s moves, such as imposing tariffs, at a townhall event.

During an hour-long tele-townhall with his constituents in Minnesota, House Majority Whip Tom Emmer faced largely supportive queries over the phone.

House Speaker Mike Johnson has advised Republican legislators to steer clear of conducting face-to-face town hall meetings to prevent potential confrontational inquiries and protests.

Emmer extensively praised the actions that Trump has been taking in his first months back in office, including the tariffs he announced earlier Wednesday.

Let’s show this person some compassion as they attempt to implement policies they’ve advocated for over the past few years, particularly their commitment to safeguarding American businesses and employees,” Emmer stated. “We may encounter rough patches ahead, but once we navigate through them, things will improve significantly compared to how they were before, and undoubtedly far better than during the previous four-year period.

The South Korean Prime Minister has called for urgent actions to aid sectors impacted by the tariffs.

The interim leader of South Korea urged immediate action to implement urgent measures aimed at aiding the automobile sector and other enterprises that might be impacted by the fresh tariffs imposed by the Trump administration. He assured comprehensive governmental support to tackle what he characterized as an impending “worldwide tariff conflict.”

At an urgent governmental assembly, Prime Minister Han Duck-soo directed authorities to collaborate with corporate entities for assessing the effects of heightened tariffs imposed by the United States. He emphasized the necessity of proactive discussions with Washington aimed at “mitigating harm” to South Korea’s economic landscape, as stated by the commerce department.

While President Yoon Suk Yeol faces impeachment following his declaration of martial law in December, Han has taken on the role of acting leader in South Korea. He called for an emergency meeting with trade and foreign policy experts shortly after Trump imposed a 25% tariff on goods from South Korea.

Provided by Syndigate Media Inc. (
Syndigate.info
).

Trump Ignites Global Trade War with Sweeping Tariffs

oleh admin | Apr 3, 2025 | donald trump, international economics, international trade, politics, politics and government

President Donald Trump sparked what could become a devastating worldwide trade conflict on Wednesday when he imposed 10% tariffs on goods imported globally and introduced stringent additional duties on major trading allies.

Displaying a chart detailing extensive measures in the White House Rose Garden, Trump announced stringent tariffs targeting key trading partners such as China and the European Union, referring to the day as “Liberation Day.”

U.S. President Donald Trump announced a series of tariffs on trading partners and rivals. The image was provided by AFP.

In my view, this is one of the key dates in American history,” stated Trump. “Today marks our declaration of economic independence.

The announcement sparked instant outrage — with the United States’ ally Australia denouncing the tariffs as “not the gesture of a friend” — and prompted vows of reprisal from various countries worldwide.

The stock market appeared poised for significant fluctuations upon resuming trading on Thursday. American futures dropped sharply, and safe-haven gold reached an all-time high as investors grew wary.

Trump directed his harshest criticisms at countries he accused of mistreating the U.S., imposing tariffs such as 34% on products from geopolitical competitor China, 20% on items from the European Union, and 24% on goods from Japan.

As for the others, Trump stated that he would implement a minimum tariff of 10%, which would also apply to another major ally, Britain.

The 78-year-old Republican dismissed concerns about potential unrest, asserting that the tariffs would bring back a once-lost “Golden Era” for the U.S. economy.

“For many years, our nation has faced theft, destruction, rape, and plunder at the hands of countries close and distant, whether allies or adversaries,” Trump stated.

‘Make America wealthy again’

A carefully selected crowd consisting of cabinet members along with employees wearing hard hats from sectors such as steel, oil, and natural gas clapped and shouted enthusiastically when Trump stated that the tariffs would “bring wealth back to America.”

The broad auto tariffs of 25%, which President Trump declared earlier this week, were scheduled to come into force at 12:01 am (0401 GMT) on Thursday.

Trump labelled Wednesday’s tariffs “reciprocal” but many experts say his administration’s estimates for levies placed on US imports by other countries are wildly exaggerated

For several weeks, the U.S. president had hinted at this action, which raised concerns about an economic downturn domestically due to increased costs being borne by American consumers, along with potential harm from a trade conflict internationally.

US Treasury Secretary Scott Bessent cautioned countries against implementing retaliatory measures, stating on Fox News: “Should you choose to retaliate, it will lead to further escalation.”

Several Asian countries heavily impacted as trading partners included drops such as 49% for Cambodia, 46% for Vietnam, and 44% for Myanmar, under military rule and recently struck by a severe earthquake.

A White House official stated that Russia wasn’t impacted since it is already under sanctions related to the Ukraine conflict, which “rule out any significant trade.”

The tariffs will also reinforce fears that Trump is backing even further away from US allies towards a new order based on a vision of American supremacy.

‘Fight’

On Thursday, Australian Prime Minister Anthony Albanese stated that the tariffs were “completely unjustified.”

Italian Prime Minister Giorgia Meloni, who has aligned closely with former U.S. President Donald Trump, stated that the tariffs imposed on the European Union were “incorrect.” However, she affirmed her commitment to collaborate with Washington to reach an agreement.

The UK emerged largely unscathed following a diplomatic effort that saw Prime Minister Keir Starmer visiting the White House to present an invitation from King Charles III for a state visit, yet they still aimed to “alleviate” the imposed tariffs.

Canada and Mexico are exempt from the new tariffs because Trump has already penalized these two neighboring countries over his claims regarding their inadequate efforts to combat fentanyl drug smuggling and illegal migration.

The Canadian Prime Minister, Mark Carney, pledged to combat the current tariffs on steel, aluminum, and vehicles and to introduce retaliatory measures.

Brazil’s Congress responded by passing legislation permitting the government in South America’s biggest economy to address trade barriers.

Trump’s declaration just three months into his second term marks the end point of a longstanding romance with tariffs, which he has viewed for years as a panacea for America’s trade deficits and economic problems.

Trump Ignites Global Trade War with Sweeping Tariffs

oleh admin | Apr 3, 2025 | donald trump, international economics, international trade, politics, politics and government

On Wednesday, US President Donald Trump sparked what could become a devastating trade conflict by imposing broad 10 percent tariffs on goods imported globally and stringent extra duties on major trading allies.

Standing before the American flags in the White House Rose Garden, Trump announced stringent tariffs on both China and the European Union, referring to the day as “Liberation Day.”

Trump’s tariffs sparked instant outrage, with the United States’ ally Australia denouncing them as “unjustified” and Italy deeming them “incorrect,” while several nations have pledged countermeasures.

“For many years, our nation has faced theft, destruction, exploitation, and plunder at the hands of countries close and distant, regardless of whether they were allies or adversaries,” Trump stated.

When Trump delivered his statement, Wall Street was not yet open for business; however, the S&P index had dropped by 1.5 percent during extended trading hours. Meanwhile, the value of the dollar decreased by one percent relative to the euro while he spoke, though it later rebounded.

Trump directed his harshest criticisms at countries he accused of mistreating the U.S., imposing tariffs such as 34% on products from geopolitical competitor China, 20% on imports from the European Union, and 24% on those from Japan.

However, the 78-year-old Republican — who displayed a chart listing the highest tariffs — mentioned that he was being “quite lenient” and thus was only applying half the rate that the “biggest culprits” imposed on American goods.

– ‘Rebuild American Prosperity’ –

As for the others, Trump stated he would enforce a “minimum” tariff of 10 percent, which would also apply to another major ally, Britain.

A crowd consisting of cabinet members along with employees wearing hard hats from sectors such as steel, oil, and gas loudly applauded and cheered as Trump stated that the tariffs would “reestablish America’s wealth.”

This marks the Liberation Day,” Trump stated, emphasizing that it will “go down in history as the moment when American manufacturing was rejuvenated.

The broad-based auto tariffs of 25 percent that were declared by Trump earlier this week are set to be implemented at 12:01 am (0401 GMT) on Thursday.

Canada and Mexico are exempt from the new tariffs because Trump has previously implemented duties on these two U.S. neighbors due to his claim that they have failed to stop the illegal flow of the drug fentanyl.

Trump had hinted at this action for several weeks, asserting that tariffs would prevent other nations from exploiting the United States and foster a new economic “Golden Era.”

However, numerous specialists caution that these tariffs could lead to an economic downturn domestically as they result in higher costs for American consumers, and may also spark a detrimental trade conflict internationally.

US Treasury Secretary Scott Bessent cautioned countries against implementing retaliatory measures, stating on Fox News: “Should you choose to retaliate, it will lead to further escalation.”

The global community has been anticipating Trump’s announcement with great tension, and his imposed tariffs have affected nations across the planet.

A number of regions heavily affected were in Asia, with percentages such as 49% for Cambodia, 47% for Vietnam, and 44% for Myanmar, under military rule and recently struck by a catastrophic earthquake.

The country with the highest rate of 50 percent was Lesotho — the Southern African nation that Trump recently referred to as a place “no one has ever heard of.”

– ‘Totally unwarranted’ –

The tariffs will also reinforce fears that Trump is backing even further away from US allies towards a new order based on a vision of American supremacy.

On Thursday, Australian Prime Minister Anthony Albanese stated that the tariffs were “completely unjustified” and would alter how people view the U.S.-Australia relationship.

Italian Prime Minister Giorgia Meloni, who has aligned closely with former U.S. President Donald Trump, criticized the tariffs imposed on the European Union as “incorrect.” However, she affirmed her commitment to collaborate with Washington towards reaching an agreement.

Britain emerged largely unscathed following a diplomatic effort that saw Prime Minister Keir Starmer visiting the White House bearing an invitation from King Charles III for a state visit.

However, it continues to be dedicated to finalizing a trade agreement that could “alleviate” the 10 percent tariff it currently bears, according to business minister Jonathan Reynolds.

Trump has had a long love affair with tariffs, insisting in the face of experts that they are a cure-all for America’s trade imbalances and economic ills.

The wealthy entrepreneur claims that these taxes will lead to a “renaissance” of America’s depleted manufacturing sector, and he asserts that businesses can circumvent these duties by relocating to the U.S.

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