US-China tariff truce gives Asia time and space to reset – Asia Times

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A critical wait in a business battle that is straining global supply chains and testing the compassion of capital industry has come to an agreement between the US and China to quickly lower taxes for the next 90 days. &nbsp,

The deal, which was signed in Geneva, Switzerland, reduces Chinese import duties from 125 % to 10 % and reduces US tariffs from 145 % to 30 %. &nbsp,

The arrangement now has a significant impact on Asian markets, currencies, and sentiment, despite its length and uncertain results.

Producers, semiconductor manufacturers, and industrials led the rally in Eastern equities in the immediate aftermath. Hong Kong’s Hang Seng Tech Index closed with the biggest gain in two weeks, up 5.2 %.

Foreign exchange markets might get the best place to react. On a trade-weighted base, the penny had its best moment in over a month, but the big issue for future Derivatives markets is whether the injury to the greenback’s long-term position has already been done.

The original market reaction today was undoubtedly positive in terms of the dollar, but it also showed that stretched short positioning was being broken, according to Bloomberg. Prior to today’s news, the Taiwan dollars surged and increased by more than 8 % against the dollar this year, and some other Asian economies followed suit. &nbsp,

This is a shift in positioning, not only sound or temporary rebalancing. Two important factors are at play in the current strength of Asian assets. First, a structural one: lower taxes lower the inflationary pressure on imported goods, giving central banks in emerging Asia more room to breathe. &nbsp,

Countries like India, the Philippines, and Indonesia, which previously had to walk a tightrope between rate increases and growth support, now have a little more room to give local issues a prioritization over exterior risk defense.

Next, and most important, is the movement of money. Asian businesses will be repurchasing gains from overseas. Out of overbought money deals are stock money and property managers resuming their positions. &nbsp,

Businesses in Japan are using the option to lock in more advantageous terms after months of uncertainty as desire for money hedging tools increases. The industry has begun to price option instead of just risk.

What has changed is not that investors have a sudden belief in a US-China peace. It indicates that the persistent assumption of additional decline has stopped. A slight directional shift frequently leads to a more significant response than a trend continuation in the financial markets.

The defining financial threat of the past six months has been the trade war. Asia has not only been truly exposed, but it has also consistently been sensitive due to its complicated production ecosystems and deep trade links. &nbsp,

All of Taiwan’s factories are part of multi-step supply chains that depend on predictability, including North Korean exporters of electronics, Chinese machinery companies, and Asian assemblers. Taxes didn’t just put costs; they also added immobility.

Some of that paralysis did finally subside. Companies can now start making decisions afterwards regarding purchasing, hiring, shipments, and capital costs with a 90-day windows of reduced tariffs. &nbsp,

Lenders in the region will likely experience renewed interest from business owners in restarting earlier postponed investment programs. There will be nearly immediate signs of renewed planning task in Southeast Asia, where some businesses had delayed cross-border expansions according to price doubt.

This rise in action will be further bolstered by the US dollar’s weakening. This time will not be the same as a weaker dollar does, which is normally how flows into emerging markets are amplified. &nbsp,

Money loan is less expensive to support and less costly to service. Dollar-priced goods increase in value. Additionally, Asian sovereign bonds and securities, which had been priced competitively, are seeing once more hesitant inflows.

However, it would be harmful to misinterpret this shift in tone with a real end to US-China conflicts. The scope of the Geneva deal is constrained, and it was intended to be transitory. It lacks a law enforcement device, and its base is delicate. &nbsp,

President Trump’s comments following the agreement, which suggested an “80 % price” might be appropriate “next moment,” underscore how smooth the situation is. However, this does indicate that the country’s two largest economy are under siege. &nbsp,

The US is addressing voting apprehensions over stagnant economic growth and consumer prices. China is attempting to re-anchor investor confidence and regulate business activity. Both parties can’t purchase a completely tense business relationship right now, at least not at this time.

That shared barrier is what gives the ceasefire its momentary pounds. It’s enough to knock the marketplaces out of battle method. It’s enough to give Asia’s policymakers a place to transition away from response and toward strategy. And it’s enough to cause traders to reevaluate their investment decisions in Asia.

Some of the world’s most successful export-driven countries, powerful consumer markets, and quick-changing tech players still reside in Asia. By introducing additional threat, the tariff battle obscured that strength. Just enough of the fog is removed by the truce to re-establish the local case.

Also, dangers persist. A collapse in talks, a change in Washington’s social climate, or new measures that target technology or the capital markets was quickly derail optimism. If the detente proves brief, investors who rush in unhedged or overweight may find themselves going off the rails.

Given today’s rise in capital markets and strengthening assets, Asia is expected to restore its standing for the time being.

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US and China agree to slash tariffs for 90 days

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BBC 'Breaking' graphicBBC

The US and China have come to an agreement to temporarily lower the levies they impose on each other’s goods.

Both nations ‘ mutual taxes would be reduced by 115 percent for 90 days, according to US Treasury Secretary Scott Bessent.

After China and the US had recently engaged in “productive and constructive” business discussions over the weekend in Switzerland, Bessent had previously stated.

The two nations had their first official meet since US President Donald Trump had imposed severe tariffs on Chinese products entering the country in January.

Trump had imposed a 145 % tariff on Chinese imports, while Beijing reacted by imposing a 125 % levy on some US goods.

Financial markets shook up as a result of the massive taxes, which also sparked worries of a worldwide crisis.

However, Chinese goods will now be subject to US tariffs of 30 % for 90 days, while Chinese goods will be subject to Chinese tariffs of 10 % for the same time.

This cutting-edge account is being updated, and more information will be available soon. Choose reload the site to get the most up to date information.

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Global partnerships crucial amid uncertainty over Trump’s proposed movie tariffs, say Singapore filmmakers

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The global film industry is in uncertainty as a result of Donald Trump’s most recent announcement that he will impose 100 % tariffs on movies made outside of the United States.

However, Singaporean filmmakers and producers are working harder to develop cross-border partnerships even as the White House is still unsure about how it will be implemented.

International collaborations are essential for both production and distribution, according to them, and they are essential to sustaining growth in the global film environment.

Ms. Tan Si En, co-producer of A Important Spirit, a mystical black comedy romantic movie that was produced in collaboration with Singapore, Thailand, and France, is one of these industry leaders.

The film’s world premiere is scheduled for Friday ( May 17 ) at Cannes, the biggest film festival in the world.

Ms. Tan told CNA that while it is too early to predict the impact of the taxes, they did “make the business much more challenging than it already is.”

” I think it will be complicated because, on the one hand, the tariffs may encourage more US production, but, perhaps, they may also create Asia a much more attractive place to produce tales from our side of the world,” she said.

” I hope the price will prompt us to reconsider our global approach as producers.” Perhaps it will help us put more emphasis on advertising channels like film festivals or film markets like Cannes Film Festival.

When Ms. Tan makes her way to the European area this week, she anticipates seeing the sector come together to determine what will happen next. This includes how to distribute movies to various nations and people.

” I hope that people may think creatively through various kinds of co-operations, perhaps outside the US,” she continued.

” It might be an opportunity for our pictures to reach different websites, or for platforms to explore perhaps lands that they have been neglecting outside of the US,” said the filmmaker.

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Commentary: As delistings continue to outpace IPOs, confidence in Singapore’s stock market is wearing thin

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MORE POWER IS REQUIRED

Speaking to industry insiders, one also has the effect that smaller businesses are burdened by the SGX’s regulatory framework, which is acknowledged to be among the best in the world. Companies with thin or dangerous margins may struggle to manage the large compliance costs, and they may finally head for the entrance. If their companies don’t show much interest in the market, that’s even more so.

What’s the alternative then?

Some market observers believe that more could be done to support an expensive bourse, despite the EMRG’s initiatives appearing to be heading in the right direction. While S$ 5 billion is a good place to start to add liquidity to the market, it is worthwhile to think about whether government-backed funds like GIC should also make investments in SGX-listed stocks. &nbsp,

As I have previously stated in my previous sections on this area, it makes sense for the GIC to invest in local businesses if the SGX succeeds in attracting them to list here, especially when they do but on other markets like Hong Kong. Such a strategy might enhance the attractiveness of the SGX as a list target.

Additionally, it has been suggested that the liquidity-supporting restrictions on small marketing and margin trading be relaxed. This may bring up the animal spirits that are needed to ignite the market’s liquidity if it is properly regulated and restricted to “accredited traders” who have undergone some form of training or have taken the required course. The Securities Investors Association ( Singapore ), or SIAS, may implement a similar program and certification.

There are many different ways to skin a cat, but there isn’t a one remedy.

A market that is situated at the heart of one of Asia’s top economic and wealth management centers is seriously concerned about the issues of cash, delistings, and the lack of fresh IPOs. However, this is not a solvable issue. Simply put, it calls for major, actionable solutions that address the root causes.

Half-hearted and fragmented actions may not be sufficient. The EMRG’s initiatives are too few, very soon, and not detailed enough to offer a great knock solution for a very sick market, as is now the criticism. More ardor is necessary.

For more than 30 years, Ven Sreenivasan has written about financial markets, economic news, organizational news, and aviation.

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Asean Summit seen as strategic platform amid shifting trade landscape, say academics

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SOUTH-EAST ASIA ( Bernama ): The upcoming 46th Asean Summit in Kuala Lumpur is expected to serve as a strategic platform for the region to navigate evolving global trade dynamics, with academics offering differing views on the potential impact of renewed United States ( US) tariff actions and Asean’s growing engagement with emerging economic blocs.

Universiti Sains Islam Malaysia ( USIM)’s Faculty of Economics and Muamalat Professor Dr Nuradli Ridzwan Shah Mohd Dali said the summit could be a vital platform for Asean to coordinate its response to uncertainties arising from US trade policies, while strengthening ties with emerging economic blocs like BRICS, the Gulf Cooperation Council ( GCC), and China.

” The Trump-era levies in 2018 had short-term effect on Malaysia, especially in business attitude and trade uncertainty, but stabilised within nine times.  

” But, with the recent 90-day suspension of US mutual tariffs, the uncertainty remains. Any escalation could dampen Malaysia’s Gross Domestic Product ( GDP ) growth, especially in export-reliant sectors, ” he told Bernama International News Service recently.

Prime Minister Datuk Seri Anwar Ibrahim had earlier said that Malaysia’s trade functionality to the US could be drastically affected by any recurrence of tariffs, though the short-term prospect remains tolerable due to ongoing trade diversification efforts.

Nuradli said Asean must now capitalise on regional frameworks such as the Regional Comprehensive Economic Partnership (RCEP ) to strengthen intra-regional trade and present a united front.

” This is about reducing overdependence on any single market. Asean has a chance to lead by example through proper local connectivity. Leveraging contact and existing business partnerships will help mattress member state from external shocks, ” he said.

He said that Malaysia’s move to increase business with BRICS, the GCC, and China is hardly a pivot away from the West, but more a necessary expansion plan.

” In today’s multilateral world, maintaining healthy relationships with both Western and Eastern capabilities is important. Diversification is no longer recommended. It is critical for sustainable development, ” he said.

Nuradli also believes that deeper economic cooperation between Asean, GCC and China could pave the way for the emergence of a more cohesive trade bloc, particularly as infrastructure and logistics connectivity continue to improve under initiatives such as China ’s Belt and Road Initiative ( BRI ).

” If Asean and GCC can align trade standards and regulatory frameworks, and with China ’s economic scale as a foundation, there’s strong potential to create a counterbalance to Western-centric trade blocs, ” he said.

On Asean’s long-term placement, Nuradli underscored  the importance of maintaining proper independence.

He said Asean should steer clear of big power rivalries and concentrate on being a trusted and rational partner to all- a sensible approach that reinforces its main role in shaping local diplomacy and trade.

However, University of Tasmania’s Professor Dr James Chin, an expert in Eastern Studies, offered a different view, arguing that the US mutual tariffs are unlikely to change Malaysia’s deal or market in any major way.

” The 24 per cent tax and other trade measures are clearly designed to push countries back to the negotiation table.  

” Once new trade agreements are made, it could even open more doors for American companies in Malaysia. I don’t foresee any long-term consequences-if anything, trade between Malaysia and the US could increase, ” he said.

As part of its effort to reduce reliance on Western markets through deeper engagement with BRICS, the GCC, and China, Chin said Malaysia has consistently maintained an open trade policy and is willing to do business with any willing partner.

” To truly reduce dependency on the Western-dominated trade system, Malaysia must strengthen bilateral payment systems that bypass the US dollar. It’s not about stopping trade with the West, it ’s about being smart and flexible, ” he said.

He also noted that while political pressures may push Asean, GCC, and China closer in response to perceived threats to global trade, forming a fully integrated economic bloc remains uncertain.

” Politically, countries may come together out of concern over figures like Trump. But whether that results in a formal economic bloc is still a question mark, ” he added.

The 46th Asean Summit, scheduled to take place later this month in Kuala Lumpur ,  is expected to bring together key regional leaders, with growing anticipation that issues related to global trade tensions and economic realignment will feature prominently in the discussions.

As the 2025 Asean Chair, Malaysia will host these significant events later in May- The 46th Asean Summit, followed by the 2nd Asean-GCC Summit and the Asean-GCC-China Economic Summit. – Bernama

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US-China tariffs: The countries are finally talking but why now?

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eleven minutes before
Koh Ewe

BBC News

Reporting fromSingapore
Laura Bicker

China Correspondent

Reporting fromBeijing

With the country’s two largest economy set to hold talks in Switzerland, the US-China trade war may be waning.

On Saturday, the second high-level meeting since US President Donald Trump hit China with taxes will take place where best commerce officials from both sides will match.

Beijing soon retaliated, and a contentious stand-off erupted as the two nations imposed tariffs on one another. Current levels are 125 %, but some Chinese imports into the US are subject to duties as high as 245 %.

There have been months of harsh, and occasionally ferocious speech from each side as they have portrayed the other as the more desperate party.

And yet, they will encounter off over the negotiating table this trip.

But why now, then?

Saving experience

Both sides have been sending signals that they want to split the impasse despite numerous sessions of tit-for-tat taxes. Except it wasn’t immediately obvious who had smile second.

” Neither part wants to appear to be backing down,” said Stephen Olson, a former US business communicator and top visiting fellow at Singapore’s ISEAS-Yusof Ishak Institute.

Because both nations have determined that they can advance without glaringly to the contrary, the deals are taking place right now.

However, Lin Jian, a spokesman for China’s foreign department, made an emphasis on Wednesday that” the discussions are taking place at the US’s ask.”

The Commerce Ministry referred to it as a favor for Washington, saying it was responding to” names of US businesses and consumers.”

However, the Trump administration claims that because” their business is collapsing,” it’s Chinese officials who “want to do business really little.”

” They said we started,” you say? Also, I believe they should come back and examine their records, according to Trump, who spoke on Wednesday at the White House.

Getty Images Xi Jinping wearing a black coat and light blue tie, walking in front of a row of Russian soldiers carrying bayonetsGetty Images

The president added that” we can all enjoy game,” as the discussions drew nearer. Who made the initial call, and who didn’t make it, he said to reporters on Thursday.” It doesn’t matter. ” It only matters what takes place in that room.”

The timing is crucial for Beijing because it occurs during Xi’s trip to Moscow. He was a guest of honor on Friday at the Victory Day rally in Moscow to honor the 80th commemoration of the Nazi-led defeat in World War Two.

Xi reminisced to Trump’s presidency that China not only has different options for business, but that it is also presenting itself as an alternate global chief as leaders from across the Global South while standing alongside officials from across the Global South.

Beijing can do so even as it approaches the negotiating tables.

On the increase is the stress.

Trump asserts that the tariffs may strengthen the United States, and Beijing has pledged to “fight till the end”; however, the reality is that both nations are suffering from the charges.

According to federal statistics, stock production in China has fallen. Manufacturing activity decreased to the lowest levels since December 2023. Additionally, a survey conducted by Caixin this year revealed that services activity has hit a seven-month small.

Foreign manufacturers have been suffering from the high tariffs, according to the BBC, as they continue to look for markets outside the US and start a stubborn trend.

According to Bert Hofman, a teacher at the East Asian Institute in National University Singapore,” I think]China realizes that a deal is better than no bargain.”

They have therefore adopted a rational position and said,” OK, we need to start these discussions.”

Officials in Beijing have decided that the moment is right to speak now that the main May Day trip is over.

On the other hand, taxes ‘ uncertainty caused the US economy to contract for the first time in three decades.

And particularly worrying are companies that have long relied on Chinese-made products. Owner of a Los Angeles toys business told the BBC that they were “looking at the overall destruction of the supply chain.”

Xiqing Wang, BBC A man with a white shirt and blue jeans, carrying a black backpack, walks along a corridor in a shopping mall, surrounded by plushies from toy shopsXiqing Wang, BBC
Trump has acknowledged that US users may experience the bite.

At a cabinet meeting this quarter, he suggested that American children might choose to have two dolls rather than 30. And perhaps the two figurines may cost a few more than they would normally.

Trump’s approval ratings have likewise decreased due to concerns about inflation and a potential crisis, with over 60 % of Americans saying they were too focused on taxes.

According to Mr. Olson,” Both countries are feeling tension to provide a little reassurance to exceedingly nervous markets, businesses, and home constituencies.”

” A few days of meetings in Geneva may provide that purpose,” he said.

What follows?

A deal does take some time to come into place, despite the enthusiasm that the deals have generated.

According to Mr. Hofman, the discussions will primarily be about” touching base,” with the possibility of an “exchange of positions” and” an agenda]will be ] established for future discussions if things go well.

Overall, the conversations are anticipated to last several months, much like what occurred during Trump’s first name.

The US and China signed a “phase one” agreement in early 2020 to halt or decrease some charges after nearly two years of tit-for-tat taxes. Even then, it did not address more complicated problems like the removal of the existing taxes or the Chinese government’s incentives for important industries.

Many of them remained in place throughout Joe Biden’s administration, and Trump’s most recent taxes strengthen those already existing ones.

What might come from this time is a “phase one offer on steroids,” according to Mr. Olson, which may attempt to address flashpoints rather than the earlier deal. Washington wants China to impose a stronger ban on the outlawed fentanyl business, among others.

However, researchers caution that all of that will be far down the line.

According to Mr. Olson,” the widespread tensions that bedevil the US-China business relationship will not be resolved any time soon.”

” Geneva will just create obscene comments about the need to keep talking,” according to the statement.

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Sacred oxen predict bumper trade year

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PUBLISHED: 10 May 2025 at 05: 46

NEWSPAPER SECTION: News

The sacred oxen are offered seven symbolic items — rice, corn, mung beans, sesame, liquor, water, and grass — as part of a prediction ritual. Pool photo
As part of a projection ritual, the divine oxen are given seven symbolic items: rice, corn, green beans, sesame, wine, waters, and grass. Photo of a lake

A note of enthusiasm came from the old Royal Ploughing Ceremony, where sacred cows foretold a successful season for international trade, as Thailand is under pressure from the threat of a 36 % mutual price by the United States on its imports.

The seven centuries-old ritual provided a proper moral increase while the state is eagerly awaiting a formal proposal from Washington to begin discussions aimed at mitigating the effects of the rough levy. The United States accounts for over 18 % of all shipments, which highlights the substantial financial stakes at play. It is one of the country’s major export markets.

The Royal Ploughing Ceremony, which took place on Friday at Sanam Luang’s Brahmin” Raek Na Khwan” rite, started with the Buddhist” Phuet Mongkhon” ceremony at the Temple of the Emerald Buddha and continued with the Brahmin” Phuet Mongkhon” rite at the temple on Friday, was presided over by their Majesties the King and Queen.

The spiritual oxen’s traditional form of divination, the sacred oxen, had the best food choices. They chose to drink alcohol this year, which indicates that the Thai economy is well off and that foreign trade and transportation are sturdy.

They also consumed grass and water, predicting sufficient snowfall and plentiful yields all year long.

The Sukhothai era in Thailand is where the Royal Ploughing Ceremony, a custom shared by many East Asian rice-growing countries, originated. The Phraya Raek Na, a senior official, now leads the ceremony, which was once performed by the King or members of the royal family. She interprets prophecies from precipitation and yields as federal agricultural projections.

Although discontinued following Thailand’s political shift in 1932, the ceremony was revived during King Rama IX’s rule to preserve tradition and highlight the importance of agriculture. It is currently broadcast nationwide every May and is held annually.

No one can say for certain whether the oxen’s prediction will be true, but it does provide a sense of hope for a country struggling with economic hardship.

His Majesty the King and Her Majesty the Queen preside over the Royal Ploughing Ceremony, held yesterday at Sanam Luang ceremonial ground. Pool photos

The Royal Ploughing Ceremony, held on Friday at Sanam Luang ceremonial ground, is presided over by His Majesty the King and Her Majesty the Queen. Photo of a pool

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