The cards Europe can play on Trump – Asia Times

When someone threatens to impose a 20 % tax on your vineyards, it becomes clear that you no longer have a friendly relationship with that nation, let alone an ally.

Donald Trump’s approach toward Europe has the significance of being crystal clear, disagreeable though it may be. He thinks that America would benefit from operating alone, and he believes that because it is so strong, “it has all the tickets,” in his own thoughts.

Europe has two significant advantages over the United States: it has other allies beyond America, and ( counted as the European Union plus the United Kingdom, Norway, Switzerland, and Turkey ) its economy is comparable in size to the United States*.

This gives Europe a lot of opportunities to use in negotiations with Americans and for its unique long-term gain. Trump’s own defamatory tax policies have actually caused the value of the nation’s market to rise.

The US dollar’s new power in comparison to the euro has exaggerated the country’s wealth, a trend that is now in reverse.

It is crucial to keep in mind both what has changed and what is new when considering how to listen to the new position. The physical surroundings, which extends across the Atlantic and separates Russia from Russia, has drastically altered. However, the local environment has never, if only in one crucial way.

In response to the physical risk, we may both applaud the restoration of Franco-German cooperation and Britain’s resumption as a European power. However, we must also bear in mind that the local politics of France, Germany, Italy, the Netherlands, Austria, and other countries are still seriously affected by anger over emigration and economic discontent.

Even though Sir Keir Starmer’s Communist authorities is defended from it by a sizable parliamentary majority, this also applies to Britain.

A weak leader like France’s Emmanuel Macron agrees with the powerful, recently elected leaders in Germany and the United Kingdom that any improvements made to the local grievances that have fueled the rise of extremist parties should help foster a sense of unity and solidarity.

This won’t remain simple. Starmer has already caused one of his government ministers to retire by cutting foreign help to fund increased defense spending, and he is now facing a new case revolt due to security spending cuts.

Germany’s Merz may have to deal with the same issues as his competitors in the far-right Alternative for Germany and the Linke parties as he attempts to increase security and open infrastructure spending.

Macron, Merz, Starmer, and their relatives have one essential benefits, though: that Trump’s harsh treatment of Ukraine and his trade war with Europe, combined with the ever-evident threat from Russia, both in the information war and the dynamic kind, are changing the definition of nationalism and nationalism, all over the continent.

The issue is perfectly exposed by Germany’s Alternative for Germany ( AfD ), which has historically been pro-Putin while claiming to be nationalist. Chancellor-elect Merz is then able to directly criticize the anti-German AfD.

Marine le Pen in France is faced with a similar set of issues because of her anti-patriotic earlier ties to Russia. Matteo Salvini and the Lega now need to be cautious with Giorgia Meloni’s partnership, just like Meloni herself.

Although it is still early in the process, these shifting exterior and local forces are influencing Europe. Four fundamental designs can get identified.

The first is that because participation on military operations and protection investments are becoming more important, they are doing it primarily at the level of national institutions outside of established Union institutions.

Presidents, chancellors, and prime ministers are making the most magnificent moves, while the German Commission handles the tedious business of establishing new borrowing facilities, purchasing joint defense, and other similar matters.

This prevents angry people like Hungary from preventing things from going on while allowing non-member nations like Norway and Britain to participate.

The next concept centers on Ukraine’s crucial place in the present and future of Europe. Ukraine’s military power and knowledge, as well as the war itself, contribute a significant amount to the continent’s potential military strength and security, as well as its expanding, battle-tested defense sector.

If a peaceful resolution of some kind can be reached, the restoration of Ukraine’s destroyed cities and the inclusion of its economy can both contribute to boosting growth across Europe. This makes it even more crucial that Ukraine’s politics is shielded from Russian and American influence.

A solid Italian accent is present in the second style. National federal security and public investment programs must be directed in a way that promotes long-term, widely accepted, sustainable growth.

The plan for Ursula von der Leyen’s second term as president of the European Commission heavily relies on the reports released last year on EU profitability and the second business under Mario Draghi and Enrico Letta’s management.

Their recommendations were very strongly geared toward lowering federal barriers and promoting cross-border integration, which Unicredit found difficult to convince Germany to acknowledge its takeover bid for Commerzbank.

The root of the obstacle to European integration lies in the way that national weight obstructs it if it wants to revive it and counteract the challenges from Trump and Putin. The biggest problem will now be overcoming that opposition.

There is a possibility that obstacles like Hungary may be dealt with more effectively and that inner resistance to connectivity can be lessened due to the American and Russian bullies.

The third theme for additional negotiations is clear, and the problems are there. Bullies can only be dealt with in one way: by retaliating harshly and resolutely, whether it is through military damage or tariffs.

Happily, this can also be accomplished in concert with friends, of which Europe currently has more than either Russia or America. It is now time to collaborate with countries like Japan, Canada, Taiwan, Australia, and New Zealand, as well as regional associates like the United Kingdom, Norway, Switzerland, and Turkey. Europe is not at its own.

Bill Emmott, a freelance writer and consultant on foreign politics, served as editor-in-chief of The Economist from 1993 to 2000. &nbsp,

This content was first published in La Stampa in Italy and Bill Emmott’s Global View, his Substack publishing, in English. ( Subscribe here &nbsp, for free to receive his posts. ) With your style authority, Asia Times republished it. Following the author on Twitter at @bill_emmott &nbsp.

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Pakistan moves closer to Bangladesh as India watches warily

43 seconds ago
Anbarasan Ethirajan

Regional Editor for South Asia

Getty Images A Pakistani labourer carries a sack of rice at a warehouse in Karachi on April 18, 2008. Pakistan may export 15 percent less rice this year after an ongoing power crisis affected milling, a senior official in the world's fifth biggest rice exporting nation. Getty Images

The remarkable political improvements in Bangladesh that led to the ouster of former prime minister Sheikh Hasina last year have revealed a number of surprises, including Dhaka’s growing kinship with Pakistan, a former adversary.

After centuries of tense relations, the two nations finally started trading directly for the first time last month, with Dhaka importing 50, 000 kilograms of grain from Pakistan. There are reports of cooperation on security issues, as well as the revival of strong planes and military connections, and the resumption of visa applications.

Heavy, agonizing historical relationships exist between the nations, which are geographically disjointed by India. The conflict between them dates back to 1971, when Bangladesh, finally known as East Pakistan, fought to become independent of Islamabad. During the nine-month conflict that led to the formation of Bangladesh, India supported the Bengali insurgents.

Although the effects of that time are still pervasive, Dhaka and Islamabad forged friendly relations between 2001 and 2006, when a coalition of the Jamaat-e-Islami and the Bangladesh Nationalist Party ( BNP ) took power.

This changed as a result of Hasina’s 15-year law starting in 2009, when she was firmly supported by Delhi and kept a distance from Pakistan. However, relations appear to be melting after she fled to India following widespread protests against her state.

Former older Bangladeshi diplomat Humayun Kabir says the Pakistan-Bangladesh relationship has been on a somewhat difficult trajectory for the past 15 years. The relationship appears to be resuming as” two normal neighbors” at this time.

The advancements are being carefully watched, especially in India, which has long had angry relations with Pakistan.

Shehbaz Sharif and X In this handout photo released by Pakistan's Press Information Department (PID), Pakistan's Prime Minister Shehbaz Sharif (L) shakes hands with Bangladesh's interim leader Muhammad Yunus during a bilateral meeting on the sidelines of the D-8 summit in Cairo on December 19, 2024. Shehbaz Sharif and X

Since Hasina’s departure, Dhaka and Delhi have had shaky connections. Bangladesh’s needs for her extradition to face charges of crimes against humanity, cash fraud, and fraud have not been addressed by India. Hasina denies the charges leveled at her.

Some researchers believe that Dhaka and Islamabad’s recent resumption of diplomatic relations is a wise move.

Pakistan and Bangladesh are currently in a military connection. They want to act as a collective voice against India’s supremacy, says Ayesha Siddiqa, a professor from Pakistan and top brother at King’s College in London.

Other than the introduction of direct business, there have been other improvements.

At various international forums over the past few months, Muhammad Yunus, the interim leader of the Bangladeshi authorities, met with Shehbaz Sharif, the prime minister of Pakistan.

Additionally, there is a developing martial partnership.

In January, a top-ranking member of the Bangladeshi military committee visited Pakistan and met with Asim Munir, a renowned general of the military. A global sea exercise that Pakistan organized off the Karachi coastline in February also saw the participation of the Bangladeshi navy.

Veena Sikri, India’s great director to Bangladesh between 2003 and 2006, refers to the growing kinship between Islamabad and Dhaka as a “déjà nostalgia” time.

She claimed that during her time in Dhaka, India has repeatedly raised the issue of” Indian insurgents getting trained inside Bangladesh with the support of the ISI [Pakistan’s intelligence agency ] and a section of the Bangladeshi military.”

She claimed that we even gave Bangladeshi authorities information.

Authorities in Pakistan and Bangladesh denied these allegations at the time.

Armed rebel groups from India’s north-eastern state can cross over from Bangladesh relatively easily because of the longer, porous border between India and Bangladesh. However, Hasina’s Awami League, which came into power in 2009, stepped up its pressure on these organizations and destroyed their foundations.

Therefore, India is” a significant safety problem” if Bangladesh and Pakistan resume their military ties, according to Ms. Sikri.

” It’s more than just a military marriage,” he added. She continues,” Muslim creation is also reviving relations with Bangladeshi Islamist functions like Jamaat-e-Islami, which supported Islamabad during Bangladesh’s freedom war.”

The press office of the Yunus administration has categorically refuted reports that top ISI officials have visited Dhaka in Indian media. Additionally, it referred to “baseless” reports that claimed Muslim agents were attempting to restart a camp for an American insurgent group in Bangladesh.

Pakistan’s defense did not respond to BBC’s inquiries into India’s worries about the ISI’s potential future presence in Bangladesh.

Given Bangladeshi officials ‘ close economic and language ties, Dhaka can’t afford to take an anti-India position, claim experts.

Bangladeshi diplomats contend that ties with Pakistan cannot become normalized until problems with the conflict from 1971 are resolved.

Getty Images Indian army soldiers fire on Palistani positions, on December 15, 1971 during the Indo-Pakistani War of 1971. Getty Images

Hunderttausende of Bengalis were killed and tens of thousands of people were raped during the conflict. In what is regarded as a degrading section of Islamabad, more than 90, 000 Bangladeshi security and human officers gave themselves to the joint order of Indian and Bangladeshi causes.

Islamabad has shown no impulse to do so, despite the fact that Bangladesh has asked Pakistan to formally apologize for the crimes committed during the conflict.

Past Bangladeshi minister Mr. Kabir said,” Pakistan needs to own the crimes that occurred during the democracy war.” In a number of bilateral discussions with Pakistan, we also raised the issue of how the two countries ‘ possessions were divided prior to and after 1971.

Even ex-Pakistani military personnel like Ikram Sehgal agree that” the Bangladeshis ‘ demand that Pakistanis apologize for what transpired in 1971 is the main stumbling block in bilateral ties.”

However, the retired Pakistan army major insists that Bangladesh should also address the issue of attacks by Bengalis on Urdu speakers during the struggle for independence.

” I was a witness to the horrors that occurred in East Pakistan against the Urdu-speaking Bihari people,” Mr. Sehgal, who presently resides in Karachi, told the BBC.

Getty Images A garment store is reportedly set ablaze by a group of unidentified miscreants in Dhaka on August 4, 2024. Getty Images

Although history casts a shadow on ties between Dhaka and Islamabad, economists suggest that the two nations can first concentrate on boosting bilateral trade, which is currently less than$ 700 million ( £540 million ), primarily in Pakistan’s favor.

According to Sabrin Beg, an associate professor of economics at the University of Delaware,” Pakistan’s over 250 million people is a good market for Bangladesh in the medium to longer term.”

She points out that there are now restrictions, including higher taxes on both edges, and businesses and exporters must deal with immigration and travel obstacles. But, Ms. Beg claims that improved diplomatic democratic and trade relations will ease these restrictions.

Ishaq Dar, the foreign minister of Pakistan, likely to discuss some of these problems when he travels to Dhaka in April. A new government does have a unique collection of foreign policy objectives and votes are anticipated to take place in Bangladesh by the end of the year.

Whatever happens, Delhi is worried that its north-eastern states will need a firm and friendly Bangladesh because it is so concerned about the situation.

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US’ DEI curbs spark local fears

US President Donald Trump speaks to reporters before boarding Air Force One as he departs from Joint Base Andrews in Maryland, US, March 14, 2025. (Reuters photo)
On March 14, 2025, US President Donald Trump leaves Joint Base Andrews in Maryland and boardeers Air Force One. ( Reuters image )

Indian advocates for female equality and anti-discrimination have been enraged by US President Donald Trump’s current executive order to destroy US federal laws of diversity, equity, and inclusion ( DEI), which has prompted them to need people to adhere to anti-discriminatory guidelines, especially in the workplace, as a means of advancing both business and the public interest.

The president’s executive order, which comes as he places a 90-day charitable delay on foreign aid, shocked the entire world, not the least of which is Thailand, where civic organizations are promoting the rights of the LGBTQ community.

They have expressed concern that the walk might have an impact on some of the most susceptible members of society.

According to Natthineethiti Phinyapincha, chairman of Trans Consulting Group, a diversity firm,” We view Trump’s professional attempt to destroy DEI initiatives as not merely backward but as suggestive of a larger problem: the misapplication of DEI over the past decades.” In some organizations, the principle is seen as unfair rather than a means of achieving equality in the workplace.

” DE I has faced resistance from those who view it as performative, divisive, or disconnected from core business outcomes for years. This is a chance to reevaluate, reevaluate, and reframe DEI for the future, she said.

According to Ms. Natthineethiti,” Trump’s action may lead Thai businesses, especially those in the multinational sector, to view DEI as a liability rather than a strategic asset” as many local businesses rely on surface-level strategies like awareness campaigns, short-term training, or token diversity hires.

Sulaiporn Chonwilai, a Tamtang Group advocacy officer, concurred that Mr. Trump’s executive order might serve as a blueprint for anti-DE I initiatives in some Thai organizations.

Additionally, it has the potential to influence discriminatory discourse around the world, particularly among conservative Thai policymakers who are unwilling to accept Mr. Trump’s decision to support domestic legal revision efforts.

The project manager for Tamtang Group, Chinthita Kraisrikul, expressed concern that Thailand might adopt the US’s example when ratifying international laws governing human rights.

She cited the Trump administration’s re-ratification of the Geneva Consensus Declaration, a global anti-abortion treaty with about 40 nations as signatories, in January.

The paper does not have any legal ramifications on member states. However, Ms. Chinthita said the paper suggests that members repeal their abortion laws, which have the phrase” The family is the natural and fundamental group unit of society and is entitled to protection by society and the state,” which might be perceived as a counterproductive position to a family unit run by same-sex couples in contemporary society.

According to Ms. Chinthita, the US has been lobbying for other nations to sign the agreement. Thailand’s potential signing of this agreement is very high, she continued.

HEALTH WORRIES

In the meantime, Mr. Trump’s decision to halt humanitarian aid has sparked concerns among Thai activists leading the fight against HIV/AIDS, particularly in the LGBTQ community.

The decision by Mr. Trump to stop providing humanitarian aid had an impact on health services to the LGBTQ community, particularly in terms of HIV/Aids protection and awareness efforts, according to Kittinun Daramadhaj, president of the Rainbow Sky Association of Thailand.

Thanks to US funding, he said,” Many LGBTQ organizations in Thailand are able to provide HIV or STIs]sexually transmitted infections ] tests free of charge.”

With their outreach capabilities and inclusive mindset, these organizations are crucial in putting an end to Thailand’s HIV/AIDS epidemic.

Some organizations have stopped operating following the funding suspension. In the wake of this, LGBTQ people who have long experienced stigma when receiving medical care from state institutions continue to be treated differently in the healthcare system.

According to Mr. Kittinun,” Trump’s action may be viewed as an indirect attempt to end lives.”

Due to the pause of the US humanitarian fund, Jarunee Siriphan, director of the Foundation for Action on Inclusion Rights ( Fair ) and the founder of the People’s Movement to Eliminate Discrimination ( MovED), was forced to suspend her project” GO MovED” ( Government’s Movement to Eliminate Discrimination ).

A project called GO MovED aims to end discrimination against those who have HIV.

Ms. Jarunee claimed that no money was given to her project by the Thai government. Foreign donors frequently provided sponsorship, with the US being one of the largest donors, she said.

Due to the executive order, and because the project is related to DEI, we were forced to stop working on it on January 24. We are not certain whether we can resume it after the 3-month funding pause, she said.

Apcom, a Thai company whose work focuses on HIV issues, claimed that funding for the US President’s Emergency Plan for Aids Relief ( Pepfar ) had also been halted.

The organization claimed that a number of projects, including those aimed at reducing harm, harm reduction, and basic HIV services, have completely been stopped as a result of the funding freeze. The five-year global project EpiC Program, which Pepfar and USAID have funded, aims to combat the HIV epidemic.

The President Trump’s executive order to stop Pepfar and USAID from providing foreign aid has unsettling consequences. It is crucial that we stand even closer and support one another in these uncertain times. We will overcome this challenge as well, according to Midnight Poonkasetwattana, Apcom Executive Director, by fostering trust, cooperating, and exchanging information.

Sulaiporn: Warns of the blueprint for anti-DE I policies

Sulaiporn: Warns of the blueprint for anti-DE I policies

Natthineethiti:

Natthineethiti:” Many rely on awareness campaigns.

Chinthita: Concerned about legal restrictions.

Chinthita: Concerned about legal restrictions.

Kittinun: Life is saved by American funding.

Kittinun: Life is saved by American funding.

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US hits Thai officials with visa sanctions over deportation of Uyghurs to China

Thailand responded on Saturday, saying it had been given assurances from China “over the health of the Tamils and will continue to monitor the well-being of this team.”

The Thai international ministry continued, noting that it values” the long-standing and close agreement alliance with the United States, but it has always upheld a lengthy history of altruism, especially in providing support to displaced people”.

The European Parliament called on the EU to use the free trade agreement conversations as a tool to prevent future movements in this regard, and this week, the European Parliament furthermore condemned Thailand for the deportations.

According to Murray Hiebert, an analyst with the Center for Strategic and International Studies ‘ South Asian system, previous US sanctions against Thai government leaders have never been addressed.

He noted that Thailand may be sensitive to criticism, but that President Donald Trump’s tax threats against nations with significant trade deficits with Washington might temper its response.

They might want to rest, he said. With the 11th-largest trade deficit with the United States, they already have a specific on their backs. S… Thailand is still unsure when Trump imposes mutual levies in the first few days of April.

Washington has reportedly avoided imposing tougher sanctions on Thailand in the past because of problems that it might encroach upon its long-time allies.

In a statement, Rubio’s shift and the Trump presidency were praised by the Washington-based Campaign for Uyghurs lobbying group, who said it” sends a powerful message that those who support the Chinese Communist Party’s human rights abuses may experience effects for their offences.”

Rubio, a former Uyghurs legislator, has once more asserted that Beijing’s treatment of the group amounted to “genocide and crimes against humanity,” a title the US first obtained in the final days of President Donald Trump’s second term in 2021.

China disputes allegations of abuse and forced labour against Uyghurs, arguing that it has recently established “vocational training centers” to combat terrorism, separatism, and spiritual radicalism.

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Still too early for Australia to dump Trump – Asia Times

Since taking office only two months ago, US President Donald Trump has appeared to have instantly altered America’s most dependable ties to European nations. But do we interpret the signals incorrectly?

He has suggested that the US may no longer honor its commitment to protect NATO allies that aren’t adhering to the bloc’s recommendation of spending at least 2 % of their gross domestic product ( GDP ) on defense spending, in addition to pressuring Ukraine to secure a deal to end the war.

These difficult strategies have produced some success. As Trump has urged, the EU has pledged to spend more than 2 %. And his abrupt posts regarding Ukraine have all been reversed. The debate over what this means for NATO is still ongoing, but Trump’s creativity in this next word should not be underestimated.

A senior Pentagon official is now asking Australia to increase its defense spending from 2 % to 3 % of GDP.

https://twitter.com/DefenceConnect/status/1898921759706878121?ref_src=twsrc^tfw|twcamp^tweetembed|twterm^1898921759706878121|twgr^52683ca734bba28b24df70e60eb1e46e67b8417f|twcon^s1_c10&ref_url=https://theconversation.com/cooler-heads-must-prevail-with-trump-australia-shouldnt-give-up-on-the-special-friendship-252012

No countries have been free from Trump’s tariffs, even though this accounts for a small portion of its productivity and international trade. Australia may be wise to avoid doing but, despite the fact that various nations have already decided to punish.

Does Canberra be concerned about Trump’s commitment to the wider US-Australia alliance, though?

Over Trump, personal interactions should be avoided. There is no real reason to worry about a possible alliance breakdown. A Trump uprising is unlikely because of the US and Australia’s numerous powerful, enduring, and overlapping passions.

mutually beneficial, strong relationships

Trump’s subsequent actions have stoked out loud among those who are inclined to criticize the US empire and the AUKUS agreement. Former prime minister Malcolm Turnbull has specifically warned that American officials are a” conga line of toadies” paying tribute to Trump and not being more open about their censure of his plan selections.

Others have argued that” the special connection is over” and called for a significantly more independent American foreign and defense coverage. This is excessive and ineffective.

https://twitter.com/TurnbullMalcolm/status/1899382563602661452?ref_src=twsrc^tfw|twcamp^tweetembed|twterm^1899382563602661452|twgr^52683ca734bba28b24df70e60eb1e46e67b8417f|twcon^s1_c10&ref_url=https://theconversation.com/cooler-heads-must-prevail-with-trump-australia-shouldnt-give-up-on-the-special-friendship-252012

Turnbull allegedly wants opposition head Peter Dutton and prime minister Anthony Albanese to deceive him into acting in a more aggressive way against Trump. But how would that be helpful for a person who obviously enjoys escalating conflicts?

There is a distinct have to balance Australia’s national interests with personal considerations and weigh national interests with fervor.

For its stability and well-being, Australia has a significant investment in the United States. Australia will spend A$ 368 billion ( US$ 232 billion ) on nuclear-powered submarines in the upcoming decades as a result of the AUKUS agreement alone.

Australia also has a significant investment in British security technology in the fields of space, space, air, land, and cyberspace. Australia invests more than$ 1 trillion annually in the US, making it by far its biggest investment destination abroad.

In order to strengthen US security ties in the Indo-Pacific area, the US has a demonstrated interest in expanding its presence there, which could actually enhance friendly relations between the two countries. And as security analyst Des Ball once said, Australia is a” ideal piece of real estate” to handle this increased existence.

Australia now has shared submersible facilities close to Perth, US Marine Corps services in Darwin, and shared intelligence services at Pine Gap. Soon, American B-52 aircraft will also be able to fly over Tindal Air Base with taxpayer-funded updates.

Washington is likewise greatly invested in Australia. By far the largest foreign direct investment in Australia, the US even has a business surplus with Australia.

A battle aircraft from the US Marine Corps flying over Darwin in 2022. US Department of Defense/Supplied picture

boosting local cooperation

However, Australia needs to improve its security spending because so much is changing.

Australia’s store force is no longer match for purpose, organized as it was for the geopolitical time, when one power dominated the world ( its ally, the US), was once. It needs to work fast and fast. A program promoting community and regional support would be beneficial.

However, the arguments most of the time being made by critics are consistent with some of those in the 2017 Australian Foreign Policy White Paper, which was released shortly after Trump took office. This is” Australia’s Plan B,” in my opinion. It did not criticize the US empire, but instead sought to reduce the risks posed by a more interpersonal and less predictable US authority.

However, more can be done. Australia may also seem to strengthen its political, security, and economic ties with local allies in Southeast Asia and the Pacific.

Australia should instead of cutting back on its support to the area and provide better choices to Pacific partners, such as a “grand small” with Pacific Island states or even a Pacific union.

Additionally, additional safety and development cooperation is required with countries like Japan, India, and South Korea.

However, we may refrain from making honest commitments to a land war in Asia or Europe. The distraction of the remote, US-led wars in Afghanistan and Iraq has just recently slowed down local defense relations.

Yes, we need to work up. Let’s face it, though, that as a part of a security power for Ukraine, we won’t be able to significantly affect things on the ground. It’s best to use outside resources to support Ukraine and to continue to focus on strengthening local relationships.

The threat of reacting too quickly

On the other hand, some people wonder if the US can still be used to plan for local long-term defense and security.

I think we are in danger of overreacting given the initial steps of a president that is eying out important adjustments. We are currently in the midst of a surprise rather than the clouds falling in.

It’s not quite, really. However, we may wait until the dust settles.

Trump’s tax threats to Canada have caused an extraordinary gap between the two neighbors.  Photo: Frank Augstein / AP via The Talk

We should also acknowledge that American influence on US conduct has limits. We have a history of being a center energy without making any big-power claims. Let’s not get ahead of ourselves in words of what this means for our connection with Washington, though we can certainly do more to defend our rights.

Trump clearly sees the world as “multipolar,” meaning a one-power universe, including the US, China, and Russia.

Evaluations between Trump’s relations with Vladimir Putin and Franklin D. Roosevelt’s military relations with Joseph Stalin are flattering to the US leader, but they aren’t as unbelievable as some critics would make out.

They show a hyper-realist and interpersonal conception of foreign policy, where, according to Thucydides,” the sturdy do what they can and the poor suffer what they must.”

While Trump makes strides in this area of foreign relationships, it is important to keep in mind how invested both the US and Australia are in one another.

The US is a national, cosmopolitan, English-speaking, New World, common law, free market, bicameral, constitutional, and generally also liberal democracy, just like Australia. Because of these ongoing overlaps, we continue to discuss” shared principles.” And these combines have influenced the interests of these two nations for generations.

The US needs Australia more than it needs Europe, according to Trump’s fresh, interpersonal and multilateral view. ( Despite Trump’s harsh words for Europe, it should be noted that the US still has more than 100, 000 US military personnel there. )

Australia’s special geography and shared past matter in the long run because they help it keep its main rival, China, from dominating East Asia and the Pacific.

Both the American public and the American government have a long history of interest. So, Australia will continue to be a Pacific lover. The best course of action is to prevent the onset of another battle in the Pacific through the deterrent effect of this unity.

The Australian National University’s Strategic and Defense Studies Centre is led by John Blaxland, doctor.

The Conversation has republished this essay under a Creative Commons license. Read the text of the content.

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China needs a consumer revolution to hit growth goal – Asia Times

China ’s National People’s Congress extravaganza was a fine news-bad news event for international buyers.

Great, in that Xi Jinping’s Communist Party reassured the finance world that China plans to get very micro to mend its micro problems. Poor, in that Xi’s crew really needs to deliver on its plan commitments, lest China loses yet more reliability with international investors.

On the inside, the NPC prioritized reinvigorating personal businesses, level playing fields and shrinking the part of state enterprises for growth and employment. It also vowed to move past the governmental reprisals, including on technology, that originally sent buyers for the exits.

Team Xi sent a “message to entrepreneurs, but also to local governments and regulators, that the private sector ’s important and it ’s necessary, ” says economist Neil Thomas at the Asia Society Policy Institute.

More cheerful announcement came on Friday when finance, banking, central banks and other officials announced they plan to hold a March 17 press conference to describe measures to improve consumption, a signal that sent the CSI 300 Index to its highest level so far this year.

That’s the sub. On the mega, Xi’s government has often proved more skilled at talking the talk than walking the walk on the type of architectural changes many investors crave. Very often, Xi’s reform staff has overpromised and underdelivered.

Premier Li Qiang detailed the government’s fresh policy priorities in the group ’s monthly work record. Li said the latest Enemy “underscores our commitment to meet challenges head-on and wish hard to deliver. ”

Those difficulties include Donald Trump’s escalating trade war, which is imperiling China ’s ability to export its way to 5 % GDP growth, the NPC’s stated target for 2025. So far, Trump has imposed 20 % tariffs on Chinese products; he threatened to hit a 60 % cover charge while on the campaign trail.

Adding more industrial capacity to increase exports will likely experience diminishing returns as developing nations — especially Global South nations — began throwing up their own tariffs and trade barriers on cheap Chinese goods.

“The more intense the trade war, the more aggressively Beijing will add stimulus, ” says Thomas at Asia Society. “Nonetheless, debt concerns will likely deter a stimulus ‘bazooka, ’ and direct consumer stimulus remains unlikely due to ideological opposition and implementation hurdles. ”

One new measure is an expanded US$ 41 billion trade-in program for consumers and businesses involving autos, household appliances and business equipment. China will also roll out additional subsidies for new smartphones, home renovations and healthcare costs.

Beijing plans to issue an additional 4. 4 trillion yuan in local government special-purpose bonds. The debt will finance new infrastructure, purchases of land and unsold housing, and bring government contractors up to date on overdue payments.

Officials also will issue 1. 3 trillion yuan worth of ultralong special treasury bonds to support national security projects and 500 billion yuan in special sovereign bonds to recapitalize state-owned banks.

“It’s unclear how much of a jolt this budget will provide to underlying domestic demand and reflation efforts, despite the sizable rise in the deficit, ” says Jeremy Zook, top China analyst for Fitch Ratings.

China, Li said, will “move faster ” to stimulate domestic demand, policies and measures that may be more clearly articulated at the anticipated March 17 press conference. Significantly, Li said the government plans to make domestic demand the “main engine ” of growth.

If so, that will mean tackling near-record youth unemployment, shortfalls in social benefits and welfare, extreme market volatility, a property sector in crisis and households that reflexively save much more than they spend.

Herein lies the rub, though. China must drastically pick up the pace of reform just as Trump’s tariffs begin to slam global growth prospects. Weathering the storm will require bold steps to increase competitiveness and support the nation’s fast-rising tech sector.

As Morgan Stanley economist Robin Xing notes, China ’s “policy focus is to accelerate AI adoption and autonomous driving, while making gradual progress in restructuring housing and [local government financing vehicle ] debt. ”

Yet, it remains to be seen how quickly AI might boost total factor productivity and overall competitiveness. Until then, Xi can hope his 1. 4 billion people snap to attention and start spending despite the persistent lack of social safety nets to boost household confidence.

“The daily problems facing China ’s citizenry have become severe enough that the government was forced to acknowledge them before the NPC, ” says economist Jeremy Mark at the Atlantic Council. It’s “no small admission for a communist party whose propagandists normally offer a steady diet of hubris. ”

Mack says that Li’s reference to “weak public expectations” in his work report and the decision to spotlight the importance of consumption, “were a bow to public opinion in a country where the public normally has no way of expressing itself. ”

However, Mack adds, “Xi clearly remains deeply committed to his core economic policies — a point underlined on the eve of the NPC with the publication of a speech he delivered in December. While also acknowledging ‘consumption shortcomings, ’ he made clear that the highest priority must remain more world-class enterprises and leading technologies. ”

Xi’s speech, Mack adds, “also insisted that the government’s response to China ’s economic problems had already ‘boosted the property market, stock market, market expectations, and social confidence, ’ suggesting that China ’s paramount leader is skeptical about opening the taps too much for those struggling to make ends meet. ”

This buttresses the argument that Xi is prioritizing structural upgrades over tossing money at China ’s problems.

Carlos Casanova, senior Asia economist at Union Bancaire Privee, says that achieving the 5 % growth target for 2025 presents significant challenges. Beijing acknowledges that the previous year’s target was met thanks to outsized stimulus policy actions agreed by the Politburo on September 26.

“Absent this policy pivot, growth would have been slower, ” Casanova says. “Moreover, exports accounted for one-third of GDP growth in 2024, following a rebound ahead of expected US tariffs in the fourth quarter. Without similar drivers, the government will need to focus on enhancing domestic demand to address the growth gap. ”

To Casanova’s mind, the announcements made during the NPC “did n’t provide enough visibility on this front. ” Nor did Xi and Li offer a credible path out of the deflationary rut into which China threatens to fall.

Despite Beijing’s fiscal support efforts, says Capital Economics analyst Julian Evans-Pritchard, “the degree of easing is more modest than it might appear. ”

As such, he adds, “we remain skeptical that it will be sufficient to prevent growth from slowing this year, especially given the headwinds on the external front and the lack of a more pronounced shift in government spending towards support consumption. ”

The hope, though, is that Xi’s party steps up efforts to make good on the pledges he made last November. That’s when he told a ballroom full of top CEOs that China is again open for business – and ready to work with the US. “China is willing to be a partner and friend of the United States, ” Xi told an audience that included Apple CEO Tim Cook and Tesla CEO Elon Musk.

“If we regard each other as the biggest rival, the most significant geopolitical challenge and an ever-pressing threat, it will inevitably lead to wrong policies, wrong actions and wrong results, ” Xi said. He added that “no matter how the global landscape evolves, the historical trend of peaceful coexistence between China and the United States will not change. ”

Two months later in Davos, Li said “choosing investment in the Chinese market is not a risk, but an opportunity. ” Li stressed that “investing in China will bring huge returns and a better future ” and described the CEOs on hand as “participants, witnesses and beneficiaries of China ’s reform and opening up. ”

China, Li added, “stands ready to seriously look into and solve the difficulties and problems encountered by foreign enterprises ” operating in the country. “We will take active steps to address reasonable concerns of the global business community, ” Li said.

In the years since the market chaos of 2015, China opened equity markets ever wider to overseas investors, steadily increasing quotas for foreign funds. Beijing did the same with government bonds, which have since been added to benchmarks like FTSE-Russell.

Yet access to exchanges in Shanghai and Shenzhen often outpaces reforms needed to prepare China Inc for global prime time. Those include increasing transparency, boosting corporate governance building reliable surveillance mechanisms like trusted, not co-opted, credit rating companies.
 
To be sure, China has often succeeded by using its own playbook. Back in 1997-98, when developing Asia crashed, China opted against devaluing the yuan. Several times since the late 1990s, traders and analysts have predicted a credit-and-debt-fueled crash. Speculators pounced. Each time, China confounded the naysayers.

Whether China can beat the odds again depends on Xi’s ability to earn investors ’ trust. As the Chinese stock rout that erased over$ 1 trillion in valuation reminded in recent years, there are certain laws of gravity that still apply to economies transitioning from state-driven and export-led growth to services, innovation and domestic consumption.
 
It’s great that Xi and Li say they’re doubling down on moves to build a more stable economic system. But investors will require more than talk to bet big on China ’s trajectory in 2025.

Follow William Pesek on X at @WilliamPesek

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How a US rate cut would ripple and wash through Asia – Asia Times

February’s US prices record has given the Federal Reserve the room it needs to cut rates—and it may soon taking that action. With year-on-year inflation slowing to 2.8 %, down from 3 % in January, and monthly price growth decelerating, the Fed is under increasing pressure to act. &nbsp,

If it does, the results will resound across international markets, including Asia, where shifting financial situations will alter economies, currencies, and investments. A possible charge cut from the world’s most powerful central banks had so mark a turning level. &nbsp,

For more than a year, Eastern markets have contended with a strong money, forcing central banks to tighten policy to help their economies and curb inflation. If the Fed moves, that stress may comfortable.

Politicians in India, Indonesia and South Korea—previously hesitant to reduce rates—could have room to release economic conditions to help growth.

A weaker money is one of the most immediate outcomes. As price differentials small, the greenback’s dominance may probably diminish, lifting Asian currencies. The renminbi, which has been under stress due to policy difference with the Fed, may develop.

The Chinese rmb, facing challenges from Beijing’s economic change, does stabilize. This shift may offer relief to import-heavy markets and increase trade balances.

For capital markets, the repercussions are important. A Fed hinge may revive investor hunger for emerging markets, leading to new inflows into Asiatic stocks. India and Southeast Asia, with their strong progress stories, stand to benefit, while Hong Kong—long weighed down by outflows—could see a return in attitude. &nbsp,

Lower saving fees will help businesses, especially those in engineering and consumer businesses, which have struggled under high interest rates.

However, there are complexities. A Fed move to ease policy will not resolve all of Asia’s challenges. China, the region’s largest economy, continues to grapple with weak domestic demand and real estate troubles. While a softer dollar may ease liquidity concerns, sustained recovery will depend on Beijing’s policy choices.

Trade risks remain high. The potential rate cuts come as the US shifts toward a more protectionist stance. Trump’s renewed tariff threats on China introduce fresh uncertainty. Even if monetary easing boosts demand, tighter trade conditions could offset those benefits by disrupting supply chains and raising costs.

Commodities markets will react swiftly. A weaker dollar often fuels rallies in oil and industrial metals—key imports for Asia’s manufacturing economies.

While this could raise input costs, it may also indicate stronger demand, benefiting resource-rich nations like Indonesia and Australia. China, the world’s largest commodities consumer, will be closely watching these shifts.

For corporate borrowers, financing conditions will improve. Many Asian firms carry dollar-denominated debt, and a weaker US currency, combined with lower global borrowing costs, would ease repayment burdens. &nbsp,

This could, I believe, unlock delayed investment and support expansion, particularly in real estate and infrastructure sectors.

Bond markets will adjust quickly. As US Treasury yields decline, Asian fixed-income markets will look more attractive. Investors searching for yield will turn to local bonds, potentially lowering borrowing costs for governments and corporations across the region.

The banking sector in Asia is also likely also see changes. A lower interest rate environment in the US would encourage capital flows into emerging markets, reducing pressure on Asian lenders.

Lower borrowing costs may prompt increased credit growth, particularly in economies with robust banking sectors like Singapore and South Korea. But financial institutions must remain cautious about excessive risk-taking in a low-rate environment.

The impact on consumers will be mixed. While lower interest rates could stimulate economic activity, they may also fuel asset bubbles in real estate and equities. Countries like China and South Korea, where housing affordability is already a concern, will need to manage the risk of excessive price surges. &nbsp,

In addition, higher household purchasing power due to stronger currencies could provide a boost to domestic consumption, benefiting retailers and consumer-driven industries.

Asia’s policymakers will have to navigate this shifting landscape carefully. While many economies stand to benefit from the Fed’s potential rate cuts, regional central banks must decide how aggressively to adjust their own policies. Some may choose to maintain higher rates to ensure financial stability, while others could seize the opportunity to stimulate growth.

Ultimately, if the Fed cuts rates, Asia’s economic landscape will shift. The era of aggressive tightening is, I suspect, nearing its end, and a new phase of capital flows and risk positioning is beginning. &nbsp,

The Fed’s next move isn’t guaranteed, but the signs are there. Inflation is cooling, economic momentum is slowing, and policymakers are under pressure to act. The moment the Fed pulls the trigger, Asia will, or at least should, have to respond.

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US-Ukraine ceasefire proposal puts ball in Putin’s court – Asia Times

The United States says Ukraine has agreed to its request for a 30-day peace with Russia following three years of war.

The news followed peace talks in Saudi Arabia, where Ukrainian President Volodymyr Zelensky traveled on March 10, and is a amazing turn of events. The game is now in Russia’s courtroom in terms of whether it accepts the ceasefire plan.

Zelensky’s new shouting meet with US President Donald Trump and Vice President JD Vance in the White House, at a floor level, could not have gone little worse from the Ukrainian party’s view. Both Trump and Vance subjected Zelensky to withering problems before their appointment immediately ended.

The consequences from the appointment immediately seemed even worse than the meet itself. On March 3, Trump paused fabric military aid to Ukraine, and two days later, the US stopped sharing knowledge with Russians. The choice on cleverness has since been reversed following Ukraine’s deal with the peace plan.

When campaigning for president, Trump promised to end the conflict in 24 hours. After he won a second word, Trump has appeared indifferent and even hostile towards Russia at times.

The local upheaval that’s been fuelled by many of his plans, however, has evidently caused him to get a earn in foreign affairs. Enter Ukraine.

However, Trump’s increased emphasis on Ukraine in recent months, including his Oval Office assault on Zelensky, has required the Russian president to adjust. He’s so been making moves to shore up support for Ukraine in a world free of American administration.

Trump’s preoccupation

Trump’s preoccupation with Ukraine stems from several aspects of his world view.

Second, while principles of Trump being a Russian broker may be overblown, he does appear fixated on Russian President Vladimir Putin. This preoccupation likely stems from the fact that Putin, many like Trump, views the world in a transactional way. Putin is someone with whom Trump, who broadcasts himself as a deal-maker, is reach an agreement.

Next, the Russia-Ukraine issue coincides with Trump’s world see that the US provides too much and the rest of the world too little to safe global security. This view is especially the case with Europe, which Trump opinions as “free-loading” via American security offers.

Third, Trump opinions Ukraine as having the potential to help British industry and army, only not in a military fashion. The rare earth minerals that Ukraine possesses have significant economic and military implications, and the market is dominated by the state Trump and many others view as America’s chief rival: China.

Fourth and finally, Trump correctly views the US as having leverage over Ukraine. American military aid has largely allowed Ukraine to fight a protracted war against a much larger enemy. While the degradation of Russia’s military and economy benefits the US, Trump’s focus on short-term objectives largely overlooks this point.

Did Zelensky outplay Trump?

Trump, however, did not account for Zelensky’s strength of character. While Trump is seeking to use Ukraine for his own advantage, Zelensky remains focused on Ukraine’s interests— and not on America first. The emerging personality conflict between both men made the chaotic Oval Office meeting almost inevitable.

Given Trump’s rhetoric towards Zelenskyy in the lead-up to that meeting, it’s curious the Ukrainian leader agreed to the meeting at all. But Zelenskyy himself reportedly pushed for the meeting, and even had French President Emmanuel Macron intervene on his behalf.

American support for Ukraine was disappearing before the tumultuous meeting. There has been no new aid for Ukraine since Trump assumed the presidency. For Ukraine to survive, it needs a new patron.

Zelensky has taken risks during the conflict, not all of which have worked in his or Ukraine’s favor. Those risks, however, have always been calculated. His attempt to bolster support for Ukraine among its non-American allies following the contentious White House meeting might be an example of this type of calculation.

Europe rallies around Ukraine

In the aftermath of the meeting, the international community has rallied around Ukraine. Most important, however, has been the European response.

For all the problems in Trump’s approach, he is correct that the European response to Russia’s invasion has left a lot to be desired from Ukraine’s perspective. While Europe has provided more financial assistance to Ukraine than the US, it has largely occurred in spurts and only after American leadership on the issue.

France and the United Kingdom have emerged as Ukraine’s biggest backers in Europe. This is not new, as both countries have been among Ukraine’s most vocal supporters over the last few years. What Ukraine needs, however, is for that vocal support to turn into action.

European Commission President Ursula von der Leyen announced an 800 billion euro program for European Union members to bolster their defence capabilities soon after Zelenskyy met with European leaders in London in early March. In explaining her rationale, von der Leyen stated:

” With this equipment, member states can massively step up their support to Ukraine… This approach of joint procurement will also reduce costs, reduce fragmentation, increase interoperability and strengthen our defence industrial base”.

EU is critical

Though not perfect, the renewed support from the EU and the UK may allow Ukraine to continue fighting as Russia’s declining economy hinders Putin’s war effort.

In the aftermath of the Oval Office showdown with Trump and Vance, Zelensky has done what he can to repair Ukraine’s relationship with the US and satiate Trump’s ego, but tension remains.

From Ukraine’s perspective, it needs a new partner in its war against Russia, and the EU can serve that purpose. The US may be the country pushing for a ceasefire in Ukraine, but it’s Europe that will play the most vital role in Ukraine’s ability to fight the war if it endures.

James Horncastle is assistant professor and Edward and Emily McWhinney professor in international relations, Simon Fraser University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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GE2025: Analysts expect interest to heat up in the west of Singapore, as parties relook strategies amid boundary changes

SINGAPORE: Political parties keen to contest in the west of Singapore will likely have to relook their strategies, with the redrawing of electoral boundaries in the region, said political analysts on Tuesday ( Mar 11 ). &nbsp,

” The west of Singapore has been redrawn to quite a big extent” compared to the 2020 General Election, said Dr Teo Kay Key, a research fellow with the National University of Singapore’s ( NUS) Institute of Policy Studies ( IPS).

This area is likely to see a lot of exercise, given that political parties engaged in the area may need to adjust or relook their techniques on where to battle, she added. &nbsp,

Independent political observer Dr Felix Tan stopped short of commenting on whether the boundaries in the west would favour the People’s Action Party ( PAP ) or the opposition parties that intend to contest there. &nbsp,

But cutting Jurong GRC into Jurong West and Jurong East and combining them with West Coast and Bukit Batok both indicates that the social events involved will have to reevaluate their strategies, he added. &nbsp,

In 2020, the PAP group led by therefore Senior Minister Tharman Shanmugaratnam defeated Red Dot United in Jurong GRC with 74.62 per share of the ballot, making it the candidate’s best performing district for the next subsequent election. &nbsp,

” I think it’s about relooking at how best they can get the help, or attract support from those people within these revised boundaries”, said Dr Tan. &nbsp,

The adjustments to the political boundaries brought” no great upsets”, he added, noting that most of the restrictions were revised because of the changing number of voters within the divisions.

NUS associate professor of social science Bilveer Singh noted that the limit shifts affected a major bulk of wards&nbsp, and&nbsp, broke” the previous taboo of dabbling into opposition units”.

Associate Professor Tan Ern Ser, an adjunct principal research fellow with IPS, called the move “historic” as the Electoral Boundaries Review Committee ( EBRC ) has typically not made changes to opposition-held wards.

The boundaries of Aljunied GRC, held by the Workers ‘ Party ( WP), were redrawn for the first time since the 2011 hustings, when the opposition party first captured the ward. &nbsp,

Poll districts in Tampines West and the east of Bedok Reservoir may get moved to Tampines GRC, with the changes affecting about 3, 900 votes.

According to the state newspaper, 150, 821&nbsp, votes were cast in Aljunied GRC in the 2020 vote. &nbsp,

Assoc Prof Singh said that with piece of Aljunied GRC joining Tampines GRC, the PAP’s keep on Tampines may become weakened if the WP areas a staff it.

MORE POLITICAL Confrontation

According to the report released by the EBRC on Tuesday ( Mar 11 ), five new Group Representation Constituencies ( GRCs ) and six new Single Member Constituencies ( SMCs ) have been created.

The six innovative SMCs are Bukit Gombak, Jalan Kayu, Jurong Central, Queenstown, Sembawang West and Tampines Changkat. There are 15 in full. &nbsp,

Gone from the diagram are the SMCs of Yuhua, Bukit Batok, Hong Kah North, MacPherson and Punggol West, which have been absorbed into GRCs.

Nevertheless, one more SMC and one more GRC have been added to the mix. There will be eight four-seater GRCs in the 2025 General Election, away from six in 2020, and 10 five-seater GRCs, down from 11 in the last vote.

Assoc Prof Singh noted that new SMCs have been carved out of” safe ( PAP ) GRCs” – for example, Sembawang West SMC from Sembawang GRC, currently helmed by Health Minister Ong Ye Kung. This would probably gain the former PAP, unless it is faced with strong opponents from a main opposition group, he said.

Singapore Management University’s ( SMU) associate professor of law Eugene Tan said SMCs are “always popular” with opposition parties because they are seen to provide for fairer contests. &nbsp,

Nevertheless, he highlighted that many opposition events contesting the same chair is seen as not ideal. ” Right conflicts are the chosen mode”, he said. &nbsp,

Having fewer Members in GRCs while adding one or two more SMCs each General Election are the “right goes” to develop stronger relationships between citizens and their divisions, he added. &nbsp,

NUS ‘ associate professor of social science Chong Ja Ian said the introduction of fresh SMCs and some smaller GRCs allows for more competition. &nbsp,

Smaller opposition parties, beyond the Progress Singapore Party ( PSP) and WP, which have seats in parliament, could contest in these areas, potentially leading to more three-cornered fights, he added. &nbsp,

They can be “more aggressive” because contesting in smaller divisions requires less tools, said Assoc Prof Chong. &nbsp,

While events that now have no seats may think that single-seat fights increase their chances of getting into congress, this could eventually lead to more multi-cornered contests, said IPS ‘ Assoc Prof Tan. &nbsp,

Introducing more SMCs and smaller GRCs is consistent with the trend towards smaller constituencies, said Assoc Prof Chong. This potentially limits risks for the PAP, he added.

” Previously when they would lose a GRC, they have several ministers go. Now with things broken up a little bit more, any potential loss can be minimised more”, he said. &nbsp,

The trend towards smaller constituencies started during the 2020 General Election, after then Prime Minister Lee Hsien Loong said in 2016 that Singapore would have to” strike the right balance” &nbsp, between big GRCs, small GRCs and SMCs. &nbsp,

Creating smaller GRCs and more SMCs in the 2015 and 2011 elections gave rise to good results, he said at the time, adding that he would instruct the EBRC to further reduce the average size of GRCs and create more SMCs when it was next appointed. &nbsp,

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Japan braces for Trump’s worst as yen takes trade war fire – Asia Times

Self-awareness isn’t usually a solid suit among major Bank of Japan authorities.

Consider Haruhiko Kuroda, possibly the most internationally known governor the BOJ has had in its 143-year background. His popularity stems from a 2013-2023 campaign to end recession, one that supersized the BOJ’s balance plate to twice the size of Japan’s US$ 4.7 trillion business.

The resulting dip in the renminbi propped up Japan Inc. But now it risks running short of the Donald Trump 2.0 president in ways complicating Tokyo’s 2025. Now, Trump is sending facetious shots Japan’s method.

That has Kuroda playing security for his leader at BOJ, Kazuo Ueda. Japan, Kuroda says, must restore “any mistake” in Washington that it’s consciously weakening the yen to increase exports.

” In truth, the Chinese government has been making great efforts to prevent the renminbi from weakening”, Kuroda told local press, pointing to moves to raise interest rates and even engage in forex markets.

The BOJ, Kuroda stressed, “is not consciously guiding the renminbi lower with monetary policy. If there’s any mistake on that place, it needs to be addressed”.

What really must be addressed, nevertheless, is Tokyo’s knowledge of how its policies are going over worldwide.

Denial doesn’t change the fact that the most constant policy over the last 13 institutions has been an undervalued renminbi. Or that a key cause the BOJ has been holding costs at, or near, zero since 1999 is to protect companies facing increasing opposition across Asia.

Spin doesn’t shift Japan’s position as the globe’s major creditor nation. Twenty-six years of zero prices gave fall to the so-called “yen-carry trade“. Over time, traders got into the habit of borrowing profitably in yen to fund bet on higher-yielding property everyday.

This approach has kept upright everything from Argentine bill to South African supplies to American real estate to the New Zealand dollar to compounds on New York exchanges to cryptocurrencies.

That’s why the yen’s recent surge pulled the floor out from under markets around the globe. When the yen zigs sharply, markets have long tended to zag.

As such, the BOJ’s move on July 31 last year to raise rates to the highest level since 2008 shook world markets. The same happened in January this year, when the BOJ hiked rates a second time to 0.50 %.

Arif Husain, head of fixed income at T Rowe Price, speaks for many when he calls the yen-carry trade the” San Andreas fault of finance”.

There’s growing doubt, though, that the BOJ will keep tapping the monetary brakes as US President Trump layers on ever more tariffs, including threatening to tax Japan’s all-important auto industry.

The worry is that higher borrowing costs would exacerbate headwinds caused by Trump’s 20 % tariffs on China, levies on steel and aluminum and “reciprocal tariffs” to come.

Yet Japanese inflation is running a bit hotter than the BOJ would like. In January, Japanese inflation jumped 4 % year on year, the highest in two years. That’s double the BOJ’s inflation target. It’s also a rate that’s exceeding average wage growth.

It’s not the environment that Japan wants heading into an escalating trade war. Japan’s fourth-quarter growth was weaker than expected. The government’s second estimate of gross domestic product ( GDP ) showed output rose just 0.6 % quarter over quarter, down from the initial&nbsp, 0.7 %.

” The revisions broadly align with our expectations and confirm the picture of an economy struggling against weak domestic demand”, says Stefan Angrick, head of Japan Moody’s Analytics.

It means” Japan’s economy is, at best, treading water”, Angrick says. Fourth-quarter data, he adds, “masks an economy struggling to get out of first gear. Consumption is going sideways as pay gains have trailed inflation for the better part of three years. Sticky inflation and lackluster pay growth will push real wage gains further into the distance and, with it, an improvement in domestic consumption”.

What’s more, Angrick says,” the deteriorating trade outlook means Japan can’t count on exports to save the day. Media reports released Tuesday confirm new US tariffs on steel and aluminum won’t spare Japan”.

Takeshi&nbsp, Yamaguchi, chief Japan economist at Morgan Stanley MUFG, says that” we expect the BoJ to stay on hold at the March 18-19 monetary policy meeting”.

Others were less put off by Japan’s GDP showing. To Sonal Desai, chief investment officer at Franklin Templeton Fixed Income, recent data” supports the view that rates will face heightened upward pressure as monetary policy tightens. The BOJ is likely to hike at least twice more this year, &nbsp, but we are tilting to three”. Desai expected short-term rates to top 1 % this year.

There’s also an argument that delaying rate hikes might enrage Trump as the yen remains weaker than it might otherwise be. Earlier this month, Trump claimed he warned the leaders of Japan and China they mustn’t continue to weaken their currencies.

” You can’t do it because it’s unfair to us”, Trump complained. ” It’s very hard for us to make tractors, Caterpillar here, when Japan, China and other places are killing their currency, meaning driving it down”.

Prime Minister Shigeru Ishiba is no doubt alarmed to hear Trump lump Japan with China as currency manipulators. But his Liberal Democratic Party, and the BOJ under Kuroda’s leadership, set the stage for the coming clash with the most mercantilist US leader in at least 125 years.

Kuroda, of course, was hired by then-Prime Minister Shinzo Abe to turbocharge the BOJ’s quantitative easing policies. Abe’s 2012-2020 premiership sought to end deflation via a sharply weaker exchange rate. Abe chose Kuroda in part because of his handiwork as a senior Ministry of Finance official in the late 1990s and early 2000s.

In 2013, Abe decided the BOJ should &nbsp, take the lead in revitalizing Asia’s second-biggest economy. Hiring Kuroda was his big economic gamble _ an aggressive assault on the deflationary forces that had weakened&nbsp, Japan’s financial foundations over the previous 15&nbsp, years.

Kuroda didn’t disappoint. He hoarded more than half of all outstanding government securities, a buying binge that all but halted regular bond trading. He gorged on stocks via&nbsp, exchange-traded funds, making the BOJ by far the biggest holder of Nikkei 225 and Topix index shares.

As part of&nbsp, its&nbsp, campaign to drive the&nbsp, yen &nbsp, down 30 %, the Kuroda-led BOJ branched out into other asset markets, too. By late 2018, the BOJ’s balance sheet surpassed Japan’s GDP, a first for a Group of Seven nation.

This milestone is a reminder that for all the focus on the US Federal Reserve’s ultraloose policies in Washington after the 2008 global financial crisis, the BOJ&nbsp, has &nbsp, been far more aggressive relative to GDP. And&nbsp, now, as even Kuroda admits, detrimental to&nbsp, Japan’s economic development.

In his waning days as BOJ head, Kuroda signaled an about-face in his views on the link between&nbsp, exchange&nbsp, rates&nbsp, and healthy growth. He came to realize, at long last, that the costs of devaluation outweigh the benefits.

” The&nbsp, yen’s depreciation might have an increasing negative impact on household income through price rises”, Kuroda told business leaders in late 2022.

Worse than that: the boost from weak&nbsp, exchange&nbsp, rates&nbsp, these last&nbsp, 26&nbsp, years&nbsp, removed the urgency for disruptive&nbsp, structural reforms. &nbsp,

That’s particularly true of Abe, who came to power pledging to loosen labor markets, catalyze innovation, reduce bureaucracy, increase productivity and empower women.

And now, an undervalued yen has Trump lumping Japan in with top American rival China. Tokyo got away with its beggar-thy-neighbor tactics during the Trump 1.0 era from 2017 to 2021 in part because Abe sucked up to Trump, and in part because Trump was linearly focused on China.

The Trump 2.0 White House, though, is targeting US allies even more assertively than supposed foes China, Russia or North Korea. That’s been quite a surprise for Canada, France, Germany and other top economies. And it has Japan fearing the worst to come.

On Monday, Japanese Trade Minister Yoji Muto met in Washington with US officials seeking waivers on Trump’s tariffs, particularly on autos and steel. To no avail, according to reports.

” The talk of tariffs is, in a lot of ways, worse than the implementation of them”, says David Bahnsen, chief investment officer at the Bahnsen Group. ” The tariff talk, reversal, speculation, and chaos only fosters uncertainty”.

Bahnsen adds that,” I don’t believe the administration knows how the tariff situation will play out, but if I were a betting man, I would say that it will persist long enough to do damage to economic activity for at least a quarter or two, and ultimately result in a deal with different countries that make everyone wonder why we went through all the fuss”.

Sam Stovall, chief investment strategist at CFRA Research, notes that “how long this period of investor caution persists depends on how quickly it will take the global trade clouds, and the resulting threat of recession, to dissipate”.

Look no further than Super Mario maker Nintendo, whose stock is plunging along with other Japanese video game stocks on worries that Trump’s antics will boost prices in the US.

In fact, global investors broadly are “reducing their positions in Japanese stocks”, including the “most attractive stocks” that they have so far held on to.

If Kuroda, Ueda or Ishiba think Tokyo is going to escape Trump’s wrath, then they’re the ones “misunderstanding” where Japan finds itself as 2025 unfolds.

Follow William Pesek on X at @WilliamPesek

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