Articles in this Cluster
14-05-2025
The US and China have announced a 90-day tariff truce, with the US reducing its maximum tariff rate on Chinese imports from 145% to 30% and China lowering its 125% tariff on American goods to 10%. While the agreement offers temporary relief to companies, it also prolongs economic uncertainty, making it hard for businesses to plan for the future. The reduced tariff rate may still lead to price hikes for consumers, and a long-term trade deal is uncertain. Experts say that if the reduced tariffs remain in place, consumer confidence is likely to improve, boosting spending and supporting the job market, and reducing the odds of a US recession this year. However, businesses still face added costs and uncertainty, and some companies may pass on expenses to consumers. The truce is expected to lead to a surge in freight shipments from China as companies bulk up their inventories, straining shipping logistics and potentially squeezing smaller businesses.
14-05-2025
The US has eased a Trump-era tariff on "de minimis" packages from China, reducing the rate from 120% to 54% for shipments worth $800 or less handled by postal services. However, deliveries from commercial carriers like UPS and FedEx will face a 30% tariff. The change aims to address concerns over illicit substances being smuggled into the US, but trade experts say it will still hurt lower-income Americans who rely on cheap Chinese imports, leading to longer wait times and higher prices. Companies like Shein and Temu are adapting by stockpiling products in the US, but the impact on their business remains uncertain, and consumers may face higher prices and reduced availability.
14-05-2025
Despite a temporary truce on tariffs between the US and China, Beijing is preparing for continued rivalry with Washington, maintaining a tough stance on regional territorial claims and military competition. China's leader Xi Jinping is pursuing economic and diplomatic opportunities across Asia while flexing its power and pressing its regional claims, undeterred by the tariff truce. The US and China have deep-seated grievances, including the Pentagon's military presence in Asia, technology export controls, and China's claims on Taiwan. Experts predict that the tariff truce will not dispel distrust between the two nations, and relations may worsen again in the future due to numerous points of disagreement.
14-05-2025
Hong Kong can expect a large rise in exports to the US within two months due to a 90-day pause in the US-China tariff dispute, with industry representatives predicting a significant increase in export volume as merchants rush to ship products to the US despite higher shipping costs.
14-05-2025
Asia-Pacific markets traded mixed on Wednesday, with Japan's Nikkei 225 down 0.68% and Australia's S&P/ASX 200 flat, while Hong Kong's Hang Seng Index rose 0.96% and South Korea's Kospi gained 0.53%. The mixed performance came after Wall Street rebounded on easing U.S.-China trade tensions, with the S&P 500 rising 0.72% to close at 5,886.55. Asian chip stocks rose after Nvidia shares surged following CEO Jensen Huang's announcement of a major sale of AI chips to a Saudi firm, with Advantest gaining 4.78% and SK Hynix rising 3.53%. Other notable moves included JD.com shares climbing 3.87% after the Chinese e-commerce firm reported a 15.8% jump in net revenue, and Samsung Electronics gaining 0.7% after announcing a 1.5 billion euro acquisition of FläktGroup.
14-05-2025
Stock futures were little changed as Wall Street looked to extend a strong start to the week, following a positive day on Tuesday. The S&P 500 rose 0.72%, while the Nasdaq Composite climbed 1.61% for its fifth straight positive session. The Dow fell 0.64%, but is still up on the week. Tech names led the gains, with Nvidia jumping over 5% on news it would send AI chips to Saudi Arabia. The S&P 500 has turned positive for the year after the US and China announced a 90-day reduction on tariffs. eToro priced its IPO at $52 a share, while Chime filed paperwork for an IPO on the Nasdaq. American Eagle's shares fell nearly 15% after it withdrew its full-year guidance.
14-05-2025
Goldman Sachs and UBS raised their China economic growth forecasts following a US-China trade truce, with Goldman Sachs forecasting 4.6% growth and UBS predicting 3.7-4%. Goldman Sachs also upgraded its US growth forecast to 1% and expects the yuan to strengthen against the US dollar, reaching 7.00 in 12 months.
