WORLD Archives - US Tariff News

Thailand Ramps Up Imports, Indonesia Opts for Talks as US Tariffs Hit Southeast Asia

Thailand and Indonesia are taking markedly diplomatic approaches to the Trump administration’s sweeping new trade tariffs, as Southeast Asian nations scramble to respond to U.S. import duties that could significantly impact regional exports.

Thai Prime Minister Paetongtarn Shinawatra announced Sunday that Thailand will ramp up imports of U.S. energy, aircraft, and agricultural products in a bid to mitigate the fallout from a new 36% tariff on Thai goods entering the American market.

In remarks carried by Thai PBS, Shinawatra emphasized Thailand’s intent to maintain strong bilateral ties despite the steep levies, which she warned could hit major export categories such as electronics, processed foods, and agricultural commodities.

“We remain committed to a constructive economic partnership with the United States,” she said, adding that Thailand would also encourage Thai firms to invest more in the U.S. and ease existing import restrictions on American goods.

Thailand’s Finance Minister Pichai Chunhavajira is expected to travel to Washington in the coming days to lead high-level discussions with U.S. officials and private sector stakeholders.

Indonesia Harps on Diplomacy

Neighboring Indonesia also signaled its preference for diplomacy after the U.S. imposed a 32% tariff on Indonesian exports. Coordinating Minister for Economic Affairs Airlangga Hartarto told Antara News that Jakarta will pursue negotiations with the U.S. to address the situation.

“We are not planning retaliatory measures at this time,” Hartarto said. “Our focus is on finding a mutually beneficial outcome through dialogue.”

The new tariffs are part of a broader trade strategy unveiled by President Donald Trump last week under the banner of “Liberation Day,” which imposed duties ranging from 10% to 50% on imports from more than 180 countries. While the U.S. says the move is meant to protect domestic industries, critics warn it could spark a wider trade conflict.

Both Thailand and Indonesia are key U.S. trading partners in Southeast Asia, and their tempered responses reflect a broader regional strategy of maintaining access to the U.S. market while avoiding escalation.

More updates to follow as talks progress and other nations respond.

Latin America Reacts to Trump’s Sweeping Tariffs as Mexico Remains Relieved For Now

Latin American governments and analysts are reacting to U.S. President Donald Trump’s sweeping new tariff plan, which was unveiled Tuesday under the banner of “Liberation Day.” The executive order introduces a wide range of import duties — from 10% to as high as 50% — targeting over 180 countries and dramatically altering the global trade landscape.

While much of the Western Hemisphere faces a standard 10% tariff, some nations were hit harder. Guyana (38%), Nicaragua (18%), and Venezuela (15%) were among the most affected in the region.

Mexico and Canada, though not part of the broader announcement, continue to face 25% tariffs on auto imports and other goods not covered under the USMCA — a move that has stirred debate over the agreement’s future.

Mexico Relieved, But Not Celebrating

Speaking to media outlets, economists in Mexico described the mood as “relieved but cautious.” Compared to steep tariffs on other trading giants — China (34%), Japan (24%), and the EU (20%) — Mexico’s relatively unchanged position may bring short-term advantages via trade diversion, where U.S. importers shift sourcing to Mexico to avoid higher duties.

“There’s a sense of short-term relief here,” said Sergio Luna, a prominent Mexico City-based economist. “But it’s important to remember that Mexico’s baseline has worsened. These unilateral U.S. measures appear to conflict with the spirit, if not the letter, of the USMCA.”

The Mexican peso was among the top-performing currencies against the dollar following the announcement, reflecting investor confidence that Mexico may benefit in the short term — especially in agriculture and vehicle exports, where content rules still favor regional production.

However, concerns remain. Mexico’s economy is deeply tied to U.S. demand, with 80% of exports headed north and a trade-to-GDP ratio of over 70%. A full-blown trade war or economic slowdown in the U.S. would inevitably spill over. Luíza Pinese, an economist at XP Investimentos in São Paulo wrote: “The market reaction in Brazil has been quite positive, reflecting a sense of relief and that Brazil could be a relative “winner” in the global trade war.”

No Formal Response Yet From Mexico City

So far, Mexican officials have remained quiet on whether they will pursue legal action under USMCA’s dispute resolution process. Analysts note that by allowing unilateral tariffs, the U.S. may be undermining the framework of North American economic cooperation.

As trade tensions ripple through global markets, countries across the Americas are bracing for secondary impacts — from supply chain disruptions to inflationary pressures.

More updates to follow as regional governments and business leaders respond.

“It’s Not Good News”: Reacts Singapore, Sounds Alarm Over Trump’s Tariff Blitz

Singaporean leaders are issuing stark warnings after U.S. President Donald Trump unleashed sweeping global tariffs, with Prime Minister Lawrence Wong calling it a direct threat to the city-state’s economy and a step toward a global trade war.

“It will spell trouble for all nations, especially small ones like Singapore,” Wong said in a video address Friday evening. “We risk being squeezed out, marginalised and left behind.” The U.S. tariffs — a universal 10% minimum levy on all imports, including those from Singapore — are already rattling markets. The Straits Times Index plunged 8.7% on Monday, its steepest drop since the 2008 financial crisis.

Wong’s predecessor, Senior Minister Lee Hsien Loong, also weighed in Sunday, warning that the fallout could be deep and long-lasting. “It’s going to affect our trade, our economy, our region — and our future,” Lee said at a community event. “It’s not good news.”

Singapore’s government is now re-evaluating its 2025 growth forecast, which was already downgraded to 1–3% before the tariffs were announced — a sharp fall from 4.4% growth in 2024.

The timing of the tariff shock adds political tension ahead of Singapore’s upcoming general election. Cost-of-living pressures and economic fears are top issues for voters, and the ruling People’s Action Party (PAP) is under pressure to avoid a repeat of its poor 2020 showing, when it won its lowest-ever share of the vote.

Opposition voices are questioning the government’s tone. Tan Cheng Bock, chairman of the Progress Singapore Party, accused PAP leaders of “scaremongering.” “This call by the government ministers about the tariff, in my opinion, is partly to instil fear in the voter,” Tan said. “Don’t just make statements of this kind and scare everybody.”

Singapore, heavily reliant on trade and multinational investment, now faces tough decisions as global economic uncertainty deepens — with Trump expected to escalate tariffs again within days.

Japan, China, South Korea Join Hands to Face Off US Tariff Shock

In a rare show of regional unity, Japan, China, and South Korea have agreed to accelerate economic cooperation and revive stalled free trade talks, as U.S. tariffs threaten to upend global trade flows and hit Asia’s export-reliant economies.

Meeting for the first time in more than five years, trade ministers from the three nations issued a joint statement Sunday committing to “deepen trilateral cooperation” and fast-track negotiations toward a long-delayed free trade agreement.

The talks come just days before U.S. President Donald Trump is expected to unveil a new round of tariffs, which he’s called “Liberation Day,” including a sweeping 25% duty on all foreign-made vehicles and auto parts — a move that could hit Japan especially hard. “We reaffirmed the importance of working together,” Japan’s Trade Minister Yoji Muto said following the meeting in Seoul. “In the face of emerging global challenges, Japan, China and South Korea must lead the way in stabilizing the regional economy.”

Muto met with his Chinese counterpart Wang Wentao and South Korea’s Ahn Duk-geun, where the three agreed that negotiations for a Trilateral Free Trade Agreement (FTA) — stagnant since 2012 — must now gain urgency.

The ministers also jointly voiced support for the World Trade Organization and called for reforms to strengthen its role in a time of rising protectionism and fractured supply chains. “We stand by a rules-based, open and non-discriminatory trading system,” the statement read, emphasizing the need for WTO reform and stronger multilateral mechanisms.

The urgency stems from Trump’s escalating trade actions. The White House’s new tariff plan, set to take effect midnight Thursday, has already rattled Asian markets and threatens key export sectors.

According to the Japan Research Institute, the new U.S. auto tariffs alone could slash Japan’s domestic vehicle production by 4.3%, with auto exports to the U.S. making up nearly 30% of total exports in 2024.

The trilateral meeting also touched on expanding cooperation in critical areas such as supply chain resilience, digital trade, local business exchanges, and implementation of the Regional Comprehensive Economic Partnership (RCEP) — a massive trade pact among 15 Asia-Pacific nations. The U.S. is not a member.

With the three Northeast Asian nations accounting for over 20% of the global population and 23.4% of global GDP, their renewed push for closer economic coordination marks a significant counterweight to the rising tide of U.S. protectionism.

As trade tensions escalate globally, all eyes will now be on Washington this week — and how Tokyo, Beijing, and Seoul respond to the next wave of economic shocks.

‘Market Speaks’: China Blasts US Tariffs After Stocks Nosedive, Urges Dialogue

China issued a pointed response to sweeping new U.S. tariffs on Saturday, condemning the measures as economically reckless and politically damaging, while pointing to the global market selloff as proof of their destabilizing impact.

With stock markets around the world sliding sharply—Wall Street saw its worst week since the pandemic—Beijing warned Washington against using trade as a geopolitical weapon. The Chinese foreign ministry said the reaction from investors sent a clear message: “The market has spoken.”

Chinese Foreign Ministry spokesperson Guo Jiakun in a social media post accompanied by images of the week’s market rout, said:“Now is the time for the U.S. to stop making wrong choices.”

The escalating trade tensions stem from President Donald Trump’s latest round of 34% tariffs on Chinese imports, raising total duties on Chinese goods this year to 54%. The move also included shutting down a loophole that allowed small parcels from China to enter the U.S. untaxed.

Beijing Hits Back Hard

In retaliation, Beijing imposed mirror tariffs on U.S. exports and introduced restrictions on select rare earth materials, adding fuel to a trade conflict already straining the world’s two largest economies. These countermeasures triggered a steep global selloff, with the S&P 500 closing down 9% for the week.

In a statement carried by Xinhua, China’s state-run news agency, officials called the U.S. actions a threat to global economic stability and a violation of the principles underpinning international trade. “Tariffs should not be tools of suppression,” the statement read. “The United States must cease undermining China’s right to pursue legitimate development.”

China pledged to “take all necessary steps” to defend its sovereignty and development interests, adding that it would not hesitate to act again if provoked.

Hong Kong Stays Neutral

Chinese trade associations representing key sectors—including metals, electronics, textiles, and agriculture—issued coordinated statements denouncing the tariffs. Food industry leaders urged exporters to strengthen internal cooperation and pivot to new markets across Asia, Africa, and Latin America.

Meanwhile, Hong Kong’s Financial Secretary Paul Chan said the city would not impose any retaliatory measures of its own, stressing its position as a free port and open economy. “Maintaining the free flow of capital and goods is our core advantage,” Chan said in an interview with RTHK. “We remain committed to a rules-based global trade system.”

Otherwise, for now, the global response is clear: rising tariffs, deepening divides, and markets in freefall — with no resolution in sight.

French Cognac Producers Grapple with Crisis as US Tariffs And Global Slowdown Take Toll

Cognac producers in southwestern France are facing mounting economic pressure as a wave of new U.S. tariffs deepens the challenges already posed by declining global demand and earlier Chinese trade retaliation.

The latest blow came with U.S. President Donald Trump’s decision to impose a 20% tariff on all European goods, including French cognac, a move that threatens the backbone of France’s nearly $3 billion spirits export industry. The United States remains the largest market for cognac, accounting for roughly half of global sales.

Producers like Christophe Fillioux, whose family-owned estate has operated for five generations, are now making difficult decisions. He recently uprooted sections of his vineyard and plans to remove more next year as part of a broader industry-wide response aimed at adjusting to the downturn. “The future is very uncertain. It’s hard to plan anything right now,” said Fillioux, standing in a vineyard planted by his father in 1980.

This comes as the region’s growers were already reeling from Chinese tariffs imposed in retaliation for EU duties on electric vehicles. Shipments to China, the second-largest cognac market by volume, have dropped by over 50% since last October.

The situation may worsen: Trump has floated the possibility of further tariffs of up to 200% on European wine and spirits, escalating tensions amid the ongoing trade disputes.

Global Slump and Overcapacity

The current crisis is exacerbated by an earlier expansion in production during the post-pandemic boom, when global demand for luxury goods spiked. Many growers invested heavily, often through loans, to meet the anticipated surge. Today, many of those same producers are struggling under debt as sales decline.

Industry body BNIC (Bureau National Interprofessionnel du Cognac) has responded by cutting production limits for the third consecutive year — now just half of 2022 levels — citing a “dramatically weakened” global economic climate. “We’re doing our best to manage the fallout with banks and local governments,” said BNIC President Florent Morillon, acknowledging that external factors beyond the control of producers have triggered the crisis.

In the Cognac region, the industry — from vineyard workers to barrel-makers — supports around 70,000 jobs, many of which are now at risk. Layoffs have begun, and local leaders warn of rising unemployment.

Changing Tastes, Rising Costs

Even before the latest tariffs, cognac’s popularity in the U.S. was beginning to wane due to price hikes and changing consumer preferences. While the U.S. remains a key market, especially for mid-range bottles priced between $36–$60, analysts note that American drinkers are increasingly shifting toward alternatives like tequila and whiskey. “Cognac hasn’t expanded beyond niche demographics in the U.S.,” said Thomas Mesmin, a Paris-based luxury industry consultant. “The big brands still rely on a few core cities and loyal customer bases.”

Still, the cultural connection between cognac and the U.S. — particularly its historic popularity among Black American communities and high-profile partnerships in entertainment and sports — has helped maintain visibility in the market. But experts warn that brands may struggle to absorb the tariff cost without losing customers. “Even a $1 or $2 price increase could cause disruption in today’s environment,” Morillon said.

Fourth-generation grower Pascale Dupuy, 67, said he expects his income to fall by 40% this year after major buyers like Remy Martin slashed contracts. His daughter has shown little interest in continuing the family business, raising concerns about the long-term future of small, independent cognac estates. “It’s just one more problem in a growing list,” he said. “I don’t know if it’s worth continuing anymore.”

As producers explore new markets in Asia and Africa to offset losses, many remain uncertain about how long the downturn will last or whether the industry can recover from the combined shocks of tariffs, shifting demand, and overproduction.