Latest news with #exportsector
South China Morning Post
04-07-2025
- Business
- South China Morning Post
Why 1 clause in the US-Vietnam trade deal is sparking concern across Asia
The United States announced it had reached a trade deal with Vietnam on Wednesday, which will see Washington impose a 20 per cent tariff on Vietnamese goods. Advertisement Businesses in Vietnam's vast export sector initially reacted with relief to the news, as the 20 per cent rate is substantially lower than the 46 per cent so-called 'reciprocal' tariff that the US threatened to impose on Vietnam in April. However, the agreement has a sting in the tail. US President Donald Trump also said in a social post announcing the deal that goods deemed to be transshipped via Vietnam would face a far higher levy of 40 per cent. It remains unclear exactly how the transshipment clause will work in practice, but analysts said the provision could have far-reaching implications – not only for Vietnam, but also for the wider region. What is transshipment, and why is the US so concerned about it? In its purest form, transshipment refers to exporters evading tariffs by diverting goods via a third country.
CNA
15-05-2025
- Business
- CNA
Thailand's growth to slow over next 2 years due to tariffs, minister says
BANGKOK: Thailand's economic growth may slow down over the next two years due to steep US tariffs, but state-owned banks will provide support to exporters and supply chain businesses affected, its finance minister said on Thursday (May 15). "Within the next two years, we should see quite a few stumbles. The ones who will stumble are likely to be in the export sector," minister Pichai Chunhavajira said at a meeting with state-owned banks. However, Thailand is not expected to see a greater tariff impact than other countries, Pichai said. Thailand faces a 36 per cent US tariff if a reduction cannot be negotiated with Washington before a moratorium expires in July. The United States has set a 10 per cent tariff for most nations while the moratorium is in place. Thailand has sent a trade proposal to the United States as part of its efforts to avoid the high tariffs. In a statement, Pichai said the government plans soft loans worth 100 billion baht (US$3 billion) to support impacted supply chain businesses and exporters of goods to the United States, as well as those affected by increased imports from China. State-owned banks will also prepare measures to boost the agricultural and property sectors, as well as offering interest rate reductions for those impacted.
