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AsiaOne
10-07-2025
- Business
- AsiaOne
Singapore must develop deeper relationships with China, US, Europe: Shanmugam, Singapore News
SINGAPORE — In a multipolar world, small countries like Singapore have to develop even deeper relationships with other nations, Singapore's Home Affairs Minister K Shanmugam said on Wednesday (July 9). "There are more powers playing the game as it were, as opposed to the time when the Americans held the peace across the world. So that's changing, and in such a context, small countries like us have to develop even deeper relationships," said Shanmugam, pointing to China, the United States and Europe. Shanmugam, who is also coordinating minister for national security, was speaking in an interview at the Reuters NEXT Asia summit in Singapore that covered trade issues as well as domestic concerns such as a fake news law. On trade, Shanmugam said the US was an indispensable nation and its policies impact "every country, allies and non-allies alike", especially for a trade-reliant country like Singapore where external trade is three to four times its GDP. On Monday, US President Donald Trump sent letters to 14 countries, including allies Japan and South Korea, notifying them of tariffs of 25 per cent to 40 per cent that will kick in from August 1. In the letters, Trump warned that reprisals from countries would draw a like-for-like response. Meanwhile, China threatened to retaliate against nations that strike deals with the US to cut China out of supply chains. Singapore has not received a letter from the Trump administration this round. In April on what Trump called "Liberation Day", Singapore was hit with a 10 per cent baseline tariff, lower than its Southeast Asian neighbours, but high enough to harm the economy said the Singapore government. The trade ministry in April downgraded the nation's GDP forecast for 2025 to 0 per cent-2 per cent growth from 1 per cent-3 per cent after the US announced tariffs. The US had a goods trade surplus of US$2.8 billion (S$3.5 billion) with Singapore last year, an 84.8 per cent increase over 2023, according to the United States Trade Representative website. The city-state's data, which includes services, showed the US trade surplus with Singapore amounted to US$30 billion in 2024. The US accounted for 11 per cent of Singapore's exports in 2024 and about 55 per cent of shipments would be hit with the baseline 10 per cent tariff, estimated the central bank. [[nid:719978]]
The Diplomat
01-07-2025
- Business
- The Diplomat
The Deadline for Trump's ‘Reciprocal Tariffs' Is Looming
How are other countries responding to the threat that the U.S. tariffs will be re-applied from July 9? U.S. President Donald Trump's 90-day pause on implementing so-called 'reciprocal' tariffs on some 180 trading partners ends on July 8. How are countries responding to the threat, and will the tariffs be re-applied from July 9? The United States is demanding four things from all trading partners, while offering little in return. So these negotiations are anything but 'reciprocal.' The main demand is to rebalance bilateral goods trade between the U.S. and other countries. Nations with trade surpluses – meaning they export a greater value of goods than they import from the U.S. – will be encouraged to import more from the U.S. and/or export less to it. The U.S. is also pushing countries to eliminate a range of 'non-tariff barriers' that may affect U.S. export competitiveness. These barriers are drawn from the United States Trade Representative's March 2025 report and include a variety of perceived 'unfair' practices, from value-added taxes (such as the Goods and Services Tax) to biosecurity standards such as those Australia applies to agricultural imports. In a nod to the 'tech bros,' (alleged) restrictions on digital trade services, such as Australia's media bargaining code, and digital service taxes must be removed, along with taxes on the tech giants. On June 30, Canada dropped a new digital service tax on firms such as Google and Meta after Trump suspended trade talks. Countries must also agree to reduce reliance on inputs from China in any exports to the United States. That means companies that moved manufacturing from China to countries such as Vietnam during Trump's first term trade wars will face challenges in sourcing input components from China. Put together, this is a difficult package for any government to accept without securing something in return. Trump has been fond of saying the United States holds 'all the cards' in trade negotiations. But in reality, the negotiating partners fall into three basic categories. It's not known precisely how many countries are negotiating bilateral deals with Washington. Between 10 and 18 countries are priority 'targets,' or to use an early, colorful phrase, were targeted as the 'Dirty 15.' Category 1 likely comprises many more countries than those on the United States' naughty list. These countries were saddled with large reciprocal tariffs despite the tariff formula's evident shortcomings. To paraphrase Trump, these countries don't hold the cards and have limited negotiating power. They have no choice but to make concessions. The smarter ones will take the opportunity to make reforms and blame the bully in Washington. Mostly these are developing countries, some with high dependency on the U.S. market, including the poorest such as Bangladesh, Cambodia, and Lesotho. To make matters worse, they must keep one eye on China for fear of retribution in case Beijing perceives any promises to reduce dependence on Chinese inputs would compromise Chinese interests. Category 2 consists of countries that 'hold cards,' or have some degree of leverage. Some, such as Canada, Japan, India, and the EU, will secure limited U.S. concessions although they may resort to retaliation to force this outcome. From discussions with our government and academic sources, Japan and India likely won't retaliate, but Canada has previously and the EU likely will. Australia's Prime Minister Anthony Albanese initially said he would not negotiate and has repeated U.S. reciprocal tariffs 'are not the act of a friend.' However, the Australian government is wisely looking to bolster its negotiation cards, such as creating a critical minerals strategic reserve. No doubt policymakers are also reminding the U.S. of their favorable access to Australia's military infrastructure which could be essential to any China-U.S. military confrontation. China is category 3. The Chinese government is determined not to kowtow to Washington as they did in Trump's first term. The so-called 'Phase 1 deal' was signed but instantly forgotten in Beijing. Beijing has several cards, notably dominance of processed critical minerals and their derivative products, particularly magnets, and the United States' lack of short-term alternative supply options. After China expanded export controls on rare earths and critical minerals, shortages hit the auto industry around the world and Ford was forced to idle plants. Kevin Hassett, director of the National Economic Council, suggested on June 27 that more deals may be signed before July 8. But Trump is likely to undermine and/or negate them as his transactional whims change. The British, after announcing their U.S. deal that included relatively favorable automotive and steel export market access, watched in horror as Trump doubled tariffs on steel imports to 50 percent, and reimposed the 25 percent tariff on the United Kingdom. The U.K. government was reminded that this U.S. administration cannot be trusted. That is why countries negotiate binding trade treaties governed by domestic and international laws. Many countries are waiting on the outcomes from various U.S. court battles testing whether the president or Congress should have the power to impose unilateral tariffs. After all, if there is a chance the Supreme Court rules Trump cannot change tariffs by decree, then why negotiate with a serially untrustworthy partner? The Japanese government, for example, recently announced it is pausing trade negotiations after the U.S. demanded increased defense spending. On June 29, Trump suggested he would simply send letters to foreign nations setting a tariff rate. 'I'm going to send letters, that's the end of the trade deal,' he said. That does not bode well for countries negotiating in good faith. It's likely tariffs will be reimposed and bilateral negotiations will drag on to September or beyond, as Treasury Secretary Scott Bessent has said. After all, even the U.S. government has limited bandwidth to process so many simultaneous negotiations. Category 2 trading partners will increasingly test their own political limits. And the rest of the world is hoping for a favorable Supreme Court ruling that may, like the character Godot in the play 'Waiting for Godot,' never come. This article was originally published on The Conversation. Read the original article.
Hans India
27-06-2025
- Business
- Hans India
Prospects Rise for a New US-India Trade Deal, Says Trump
US President Donald Trump the morning of Thursday (local time) declared that the news that a "very large" trade agreement with India may be possible, just days after signing a brand new accord with China. In his speech at the Big Beautiful Event held at the White House, Trump said that the US is "going to be opening up India," hinting at substantial progress towards the long-awaited bilateral trade deal that would bring the two partners together as strategic allies. A huge deal with India due to be signed President Trump declared his belief that the US is close to concluding the largest trade agreement with India which he described as an "very important one" that could create new opportunities for economic growth between both countries. "Everybody wants to create an arrangement and be portion of the deal. Do you remember a few months ago when the press was asking, "Do you do not have anyone of any interested? Well, we agreed to a deal in China yesterday. We're having some amazing deals. We are planning to do one perhaps with India. It's a huge deal. In the process of opening up India as part of the China agreement, we're beginning to open China," he said. This is happening as a top-level Indian delegation, headed by chief negotiator Rajesh Agarwal, is in Washington for talks focused on bridging any gaps in the proposed agreement. In the month of June, US-India trade negotiators were in India to discuss the accord. They had said that the White House had said that the US demanded that nations submit their best proposals for closed-door talks as the deadline for July 8 to negotiate reciprocal tariffs was two weeks away. "I am able to confirm the legitimacy and the substance of this letter. This letter was sent by the United States Trade Representative (USTR) sent the note to our all trading partners to send them a friendly reminding them that deadlines are fast approaching close," White House spokesperson Karoline Leavitt said. US Secretary of Commerce Howard Lutnick had said that the US wanted to revive modern manufacturing technology and reduce the trade deficit through expanding exports to India while stating that both parties have "found the right place that can work" for both of them.
Indian Express
27-06-2025
- Business
- Indian Express
‘Very big one': Donald Trump hints at trade deal with India after China pact
President Donald Trump Friday hinted at a 'very big trade deal' with India as Washington and New Delhi continue negotiations to iron out an agreement before the US tariff suspension ends on July 9. On April 2, the US had announced 26 per cent reciprocal tariffs on Indian goods and later effected a 90-day pause period that ends July 9. Asserting that deals are not being made with just any nation, the US President said, 'Everybody wants to make a deal and have a part of it. Remember a few months ago, the press was saying, 'You really have anybody of any interest?' Well, we just signed with China yesterday. We are having some great deals. We have one coming up, maybe with India. Very big one. Where we're going to open up India. In the China deal, we are starting to open up China.' Trump did not elaborate on the details of the deal signed with China, or the likelihood of a major trade deal with India. 'We're not going to make deals with everybody. Some we are just going to send them a letter, say thank you very much. You are to pay 25, 35, 45 per cent. That's the easy way to do it, and my people don't want to do it that way. They want to do some of it, but they want to make more deals than I would do,' he said. Earlier this month, US trade negotiators were in India to discuss the agreement. The White House had said that the US had asked countries to make their best offers on trade negotiations as the July 8 deadline for reciprocal tariffs was just weeks away. 'I can confirm the merits and the content of the letter. The United States Trade Representative (USTR) sent this letter to all of our trading partners just to give them a friendly reminder that the deadline is coming up,' White House spokesperson Karoline Leavitt had said. US Secretary of Commerce Howard Lutnick had said that the US aimed to bring back advanced manufacturing and bridge the trade deficit by increasing exports to India, adding that both sides had 'found a place that really works' for them. Indian officials, meanwhile, have indicated that diversifying oil and defence procurement is in the country's strategic interest and sourcing more from the US could also significantly help bridge the goods trade gap, as India's refining capacity has been increasing alongside oil import dependency, which surged to 90 per cent in April 2025.
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Business Standard
20-06-2025
- Business
- Business Standard
Centre likely to relax the board regulations for foreign insurers
The official stressed that while the reforms are not intended to open the floodgates to foreign control, they signal a more welcoming approach to global participation in leadership roles premium New Delhi Listen to This Article The Union government is likely to allow foreign insurers to appoint a majority of non-resident board members, along with other key managerial personnel (KMPs), once the foreign direct investment (FDI) cap is raised to 100 per cent from the current 74 per cent, two senior government officials have confirmed. This is a key demand from the US government and American insurance industry groups, with both the United States Trade Representative (USTR) and the Coalition of Services Industry (CSI) recently raising the issue.
