Japan rubber futures slide on profit taking
The Osaka Exchange (OSE) rubber contract for January delivery was down 7.2 yen, or 2.23%, at 315.5 yen ($2.12) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery fell 435 yuan, or 2.9%, to 14,560 yuan ($2,024.64) per metric ton. The most active September butadiene rubber contract on the SHFE dipped 340 yuan, or 2.87%, to 11,495 yuan ($1,598.44) per metric ton.
In the latest round of US tariffs announced by US President Donald Trump, South Korean automobile exports will face a 15% tariff. Although this rate is lower than the 25% tariff threatened in April, South Korea previously enjoyed zero tariffs on its automobile exports to the US, whereas Japanese automakers had a 2.5% tariff.
Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
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Business Recorder
2 hours ago
- Business Recorder
Trump stakes reputation as dealmaker with tariff policy
WASHINGTON: Donald Trump is staking his reputation as a tough negotiator and slick dealmaker – that has served him well throughout his life – with his ultra-muscular, protectionist tariffs policy. On Friday, the White House released a picture of the US president seen with a smartphone pressed to his ear, with the caption: 'Making calls. Making deals. MAKING AMERICA GREAT AGAIN!' Every trade deal announced by the president, who is convinced that tariffs are both a tool and manifestation of America's economic might, is celebrated by his supporters as a show of his negotiating prowess. This week's flurry of rate changes was no different. On Thursday, with the stroke of a black marker, the former real estate developer slapped fresh tariffs on dozens of US trade partners. They will kick in on August 7 instead of August 1, which had previously been touted as a hard deadline. The Republican leader's backtracking, frequently setting trade deadlines only to rescind or extend them – he most recently granted Mexico a 90-day extension – has given rise to the mocking acronym 'TACO' ('Trump always chickens out'). Trump's global trade policy faces test, hours from tariff deadline The jokes implying Trump is all talk and no action on trade have previously struck a nerve for the president. 'Not chicken' But analysts believe there will be no going back this time. Trump has 'not chickened out,' according to Josh Lipsky, an international economics expert at the Atlantic Council think tank. Lipsky told AFP the president is 'following through, if not exceeding' what he vowed during his campaign in respect to tariffs. Matthew Aks, a public policy analyst at Evercore ISI, said he did not anticipate a 'massive shift' on the latest order, aside from some economies like Taiwan or India striking deals during the seven-day buffer. Following crunch negotiations leading up to the tariffs announcement, Trump struck a series of compromises, notably with the European Union, Japan, and South Korea, setting varying tax rates and touting high investments in the United States. The details of these agreements remain vague and leave the door open to key questions: Are exemptions possible? What will become of key sectors like automobiles, pharmaceuticals, semiconductors? And what of China? India engaged in further trade talks with US, Indian government source says The US president and leaders of other countries 'have reasons to avoid going into detailed agreements' explained Aks, allowing all sides to present the deals in the most positive, or least negative, way possible to their public. The ability to conclude deals – often with or without crucial detail – is, for the 79-year-old Republican, an integral part of his political signature. 'Art form' In his book 'The Art of the Deal,' the billionaire wrote: 'Deals are my art form. Other people paint beautifully on canvas or write wonderful poetry. I like making deals, preferably big deals. That's how I get my kicks.' Trump explained in his book that he always 'protects' himself 'by being flexible.' 'I never get too attached to one deal or one approach.' But despite comments about his trade policy reversals, Trump has hardly budged from his trade strategy, and that could prove politically painful. In a survey conducted by Quinnipiac University published in mid-July, only 40 percent of respondents said they supported the president's trade policy, while 56 percent criticized it. US cuts Pakistan tariff to 19% from 29% after trade deal The latest employment figures bear the marks of Trump's protectionist offensive, according to experts. Job creation in May and June was revised sharply downward, falling to levels not seen since the Covid-19 pandemic.
Express Tribune
5 hours ago
- Express Tribune
SBP pumps Rs13.3tr, raises Rs358b
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Express Tribune
7 hours ago
- Express Tribune
Global economies reel from Trump's tariffs punch
Listen to article US President Donald Trump's latest wave of tariffs on exports from dozens of trading partners sent global stock markets tumbling on Friday and countries and companies scrambling to seek ways to strike better deals. Pakistan, which exported about $4.1 billion worth of apparel to the United States in the 2024 fiscal year, secured a tariff rate of 19%, but industry figures were cautious about the immediate impact. "Considering India's lower production costs and the likelihood of it negotiating reduced tariffs in the near term, Pakistan is unlikely to either gain or lose a meaningful share in the apparel segment," Musadaq Zulqarnain, founder and chair of Interloop Limited — a leading Pakistani exporter. "If the current reciprocal tariff structure holds, significant investment is likely to flow into DR-CAFTA countries and Egypt," he said, referring to a trade agreement between the US and a group of Caribbean and Central American countries. Elsewhere in South Asia, Sri Lanka also secured a 20% tariff rate from the US, which accounted for 40% of its apparel exports of $4.8 billion last year. "The devil will be in the details as there are questions over issues such as trans-shipment, but overall it's mostly good," Yohan Lawrence, secretary general of the Joint Apparel Associations Forum, a Sri Lankan industry body, told Reuters. Bangladesh has negotiated a 20% tariff on exports to the US, down from the 37% initially proposed by US President Donald Trump, bringing relief to exporters in the world's second-largest garment supplier. The new rate is in line with those offered to other major apparel-exporting countries such as Sri Lanka, Vietnam, Pakistan and Indonesia. India, which failed to reach a comprehensive agreement with Washington, will face a steeper 25% tariff. As Trump presses ahead with plans to reorder the global economy with the highest tariff rates since the early 1930s, Switzerland, "stunned" by 39% tariffs, sought more talks, as did India, hit with a 25% rate. New tariffs also include a 35% duty on many goods from Canada, 50% for Brazil, 20% for Taiwan, which said its rate was "temporary" and it expected to reach a lower figure. The presidential order listed higher import duty rates of 10% to 41% starting in a week's time for 69 trading partners, taking the US effective tariff rate to about 18%, from 2.3% last year, according to analysts at Capital Economics. US stocks took an immediate hit. By early afternoon on Friday, the Dow Jones Industrial Average had dropped 0.96% to 43,708.00, the S&P 500 1.21% to 6,262.88 and the Nasdaq Composite 1.65% to 20,773.64. Markets were also reacting to a disappointing jobs report. Data showed US job growth slowed more than expected in July while the prior month's data was revised sharply lower, pointing to a slowdown in the labor market. Global shares stumbled, with Europe's STOXX 600 down 1.89% on the day and 2.5% on the week, on track for its biggest weekly drop since Trump announced his first major wave of tariffs on April 2. Trump's new tariffs have created yet more uncertainty, with many details unclear. They are set to take effect on Aug 7 at 0401 GMT, a White House official said. Trump administration officials defended the president's approach. "The uncertainty with respect to tariffs ... was critical to getting the leverage that we needed to create the circumstance in which the president could create the trade deals we've seen over the last few weeks, which have been nothing short of monumental," Council of Economic Advisers Chair Stephen Miran said on CNBC. The European Union, which struck a framework deal with Trump on Sunday, is still awaiting more Trump orders to deliver on agreed carve-outs, including on cars and aircraft, EU officials said, saying the latest executive orders did not cover that. Also, it is unclear how the administration intends to define and police the transshipment restrictions, which threaten 40% levies on any exporter deemed to have tried to mask goods from a higher-tariffed originator, such as China, as their own product. Trump's tariff rollout also comes amid evidence they have begun driving up prices. US Commerce Department data released Thursday showed prices for home furnishings and durable household equipment jumped 1.3% in June, the biggest gain since March 2022. NO WINNERS? Countries hit with hefty tariffs said they will seek to negotiate with the US in hopes of getting a lower rate. Switzerland said it would push for a "negotiated solution" with the US "It's a massive shock for the export industry and for the whole country. We are really stunned," said Jean-Philippe Kohl, deputy director of Swissmem, representing Switzerland's mechanical and electrical engineering industries. South Africa's Trade Minister Parks Tau said he was seeking "real, practical interventions" to defend jobs and the economy against the 30% U.S. tariff it faces. Southeast Asian countries, however, breathed a sigh of relief after the US tariffs on their exports that were lower than threatened and leveled the playing field with a rate of about 19% across the region's biggest economies. Thailand's finance minister said a reduction from 36% to 19% would help his country's economy. "It helps maintain Thailand's competitiveness on the global stage, boosts investor confidence and opens the door to economic growth, increased income and new opportunities," Pichai Chunhavajira said. Australian products could become more competitive in the US market, helping businesses boost exports, Trade Minister Don Farrell said, after Trump kept the minimum tariff rate of 10% for Australia.
