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The United States is ramping up pressure on its trade partners. Treasury Secretary Scott Bessent announced that if new trade deals aren’t reached within the next 90 days, the U.S. will reimpose high “reciprocal” tariffs that were originally set on April 2. Washington is bringing back an old weapon in a new trade offensive.

🔥 Ultimatum for 18 Key Countries
Speaking on CNN, Bessent confirmed that the Trump administration has started the countdown — either sign trade deals or face tariffs jumping back to as high as 145%. Most duties are currently relaxed to 10%, but Bessent made it clear: America’s patience isn’t infinite.
The U.S. is focusing on 18 “important” trade partners. Some deals may be regional, others individual — such as “one for Central America” or “for parts of Africa.” Trump said he’s willing to talk to over 150 countries, but time is running out.

🕒 90-Day Clock Is Ticking — Trump in Abu Dhabi: “Letters Are Coming”
Since April 2, when Trump called the tariff introduction “Liberation Day,” the U.S. has granted a temporary trade pause. During a visit to Abu Dhabi, Trump warned that the window is closing. Within a few weeks, Bessent and Commerce Secretary Howard Lutnick will begin sending formal letters detailing what countries will pay to do business in the U.S.
“It will be fair,” Trump assured. And markets reacted — stocks surged after the U.S. announced a temporary de-escalation with China, lowering tariffs on Chinese goods from 145% to 30%. China responded by cutting tariffs on American imports from 125% to 10%. The S&P 500 jumped 5.3%, marking five straight days of gains.

🎯 Bessent: Our Strategy? Strategic Uncertainty
Bessent defended the administration’s approach of “strategic uncertainty.” Offering too much clarity, he argued, would weaken America’s hand in negotiations. “If you don’t know what’s coming, you take talks more seriously,” he said.
He promised that small businesses, especially those reliant on Chinese parts, would still be able to trade under lower tariff conditions. Yet many owners remain anxious, warning that uncertain rules and rising costs are disrupting investments.

🛒 Walmart: We’ll Absorb Some Tariffs, Pass the Rest to Shoppers
Retail giant Walmart recently warned customers that prices might go up. Trump responded on Truth Social, urging the company to “eat the tariffs.”
Bessent remained pragmatic. He confirmed that he spoke directly with Walmart CEO Doug McMillon, who agreed that the company would absorb part of the costs, but acknowledged that some would be passed on to consumers.

📉 Moody’s Downgrades the U.S. — Bessent Shrugs It Off
On Friday, Moody’s downgraded the U.S. credit rating to Aa1, stripping the country of its final AAA rating. S&P had done so in 2011 and Fitch followed in 2023.
Moody’s cited the U.S. debt of $36 trillion and warned that the White House’s budget plan could add another $3.3 trillion over the next decade. But Bessent dismissed the downgrade: “I don’t really trust Moody’s,” he told CNN.
Still, analysts caution that a lower rating could force investors to demand higher yields on U.S. bonds — increasing the cost of borrowing and potentially raising rates on mortgages, loans, and global contracts.

🏁 Summary: Washington Turns Up the Heat — Global Trade Partners Have Until Summer
America is making its stance clear: Play by our rules or pay more. Bessent’s “strategic uncertainty” may strengthen negotiations, but it’s also injecting tension into global trade talks. While markets are currently optimistic, the threat of revived tariffs looms large.

#usa , #Tariffs , #TradeWars , #TradingCommunity , #USPolitics
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As tensions between Beijing and Washington intensify, Chinese companies are actively seeking ways to escape the tightening grip of geopolitical risks. One of the most attractive alternatives now appears to be Singapore, which is quickly emerging as a strategic gateway beyond the reach of U.S. tariffs and regulatory scrutiny.
🔹 Over the next 12 to 18 months, at least five major firms from mainland China and Hong Kong are planning to list or dual-list their shares on the Singapore Exchange (SGX).
These companies include major energy players, biotechnology startups from Shanghai, and healthcare conglomerates. And it's not just about traditional IPOs—many are considering dual listings, maintaining their presence in Hong Kong while tapping into new capital in Southeast Asia.

Trade War Drives Companies Away from the U.S.
The ongoing trade war between the U.S. and China has created a volatile and uncertain environment for Chinese businesses. U.S. tariffs on Chinese goods have reached as high as 145%, while China has retaliated with duties of up to 125% on American imports. Even though a recent 90-day ceasefire was agreed upon, long-term clarity remains elusive.
Faced with this geopolitical fog, Chinese companies are increasingly looking for safer paths to growth—and Singapore is rising to the top of that list.

Singapore: Asia’s New Financial Gateway
Until now, the SGX has struggled to compete with Hong Kong, which has long dominated the region’s IPO landscape. For instance, in 2024 so far, only four companies have listed on SGX, compared to more than 70 IPOs in Hong Kong.
But things are starting to shift.
Jason Saw of CGS International Securities noted that the demand for SGX listings has skyrocketed, particularly among Chinese firms distancing themselves from the U.S. market.
Pol de Win, a senior SGX executive, added that Singapore’s neutrality, stability, and solid legal framework make it an increasingly attractive destination for international companies.

Singapore Rewrites the Rulebook to Attract Global Listings
To lure more foreign companies, Singapore has introduced bold incentives. Earlier this year, the government announced a 20% tax break for primary listings, aiming to reduce costs and make SGX a more appealing choice.
Further measures to support listing activity and boost trading volumes are expected later this year. This is all part of Singapore’s broader strategy to position itself as Southeast Asia’s leading financial hub.
🔹 Singapore’s political stability and transparent regulatory environment offer a compelling case for companies wary of geopolitical shocks, noted Ringo Choi, IPO leader at EY Asia-Pacific.

Challenges Still Remain
Despite these advantages, Singapore still faces some obstacles. A regional tech manager, speaking anonymously, pointed out that SGX’s listing process is too rigid for tech startups and needs modernization.
He added that many of the region’s most promising startups are already headquartered in Singapore—making it a logical IPO destination—but reforms are needed before that can become a widespread reality.

Southeast Asia: China's Strategic Bet
Behind this shift lies China’s long-standing effort to deepen economic ties with Southeast Asia, particularly as tensions with Washington grow.
This region is not only geographically close but also rapidly expanding, home to a burgeoning middle class and growing demand for consumer products and technology.
🔹 For Chinese firms, Singapore represents more than just a geopolitical escape route—it’s a natural gateway to new markets.
Listing on SGX allows them to raise funds locally, boost brand visibility, and engage directly with Southeast Asian investors—all while staying out of the political spotlight.

In Summary: Singapore Rising
While Hong Kong remains the dominant foreign listing venue for Chinese companies, Singapore is rapidly gaining ground. With neutral policies, tax incentives, and strategic positioning, it's becoming a highly attractive alternative, especially in times of global uncertainty.
Chinese businesses are making their message clear: they want more freedom, stability, and access to growing markets—and Singapore is ready to deliver.

#TradeWars , #usa , #china , #TradingCommunity , #Geopolitics
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Tensions between Tokyo and Washington are casting a shadow over a key trade agreement. Japan refuses to back down, insisting on the removal of harsh U.S. tariffs on its car exports. If no deal is reached soon, it could impact both the economy and the political future of Prime Minister Shigeru Ishiba.
🔹 Japan Draws a Line: Tariffs Must Go
Prime Minister Shigeru Ishiba made it clear that Japan will not accept any deal unless the 25% tariffs imposed by the Trump administration on Japanese cars are scrapped. These tariffs have significantly harmed Japan’s auto sector – the backbone of its export economy.
Cars and car parts are Japan’s top export to the U.S. In 2024, they accounted for 81% of Japan’s trade surplus with America, which reached over $63 billion.
🔹 Negotiations Stall as Elections Loom
According to Tokyo officials, it's now unlikely that a deal will be reached before the upper house elections in late July. These elections are crucial for Ishiba’s already unpopular administration.
While Japan had previously prioritized securing a spot at the negotiation table, it’s now shifting focus toward securing a favorable outcome rather than a fast one.
🔹 Ishiba Under Pressure: “I Won’t Sacrifice Cars or Farmers”
The Prime Minister is under internal pressure – not only from business leaders but also from members of his own Liberal Democratic Party. Many strongly oppose any compromise that could harm the car industry or domestic agriculture. Ishiba has repeatedly stated that he will not support any deal that weakens either of these vital sectors.
Analysts estimate that U.S. tariffs could slash profits at major Japanese automakers by ¥2 trillion (approx. $13.7 billion) this fiscal year. While price hikes may cushion some of the blow, Japan’s economy has already dipped, marking its first quarterly decline in a year.
🔹 Japan’s Counteroffer: Cut All Tariffs
Japan has proposed a bold solution: remove all newly imposed U.S. tariffs, including those on steel, aluminum, and vehicles. Some duties have already been temporarily lowered to 10%, but Tokyo wants more – ideally, to link tariff reductions to the level of Japanese investment in the U.S.
In addition, Japan is offering to increase purchases of American agricultural goods, improve access for U.S. cars, and even help finance a liquefied natural gas pipeline in Alaska.
🔹 Diplomacy in Motion, but Time is Ticking
Japan’s Minister of Economy, Ryosei Akazawa, has met twice with U.S. officials. Further talks are planned at the upcoming G7 summit in Canada. Finance Minister Katsunobu Kato is also set to meet U.S. Treasury Secretary Scott Bessent.
Complicating matters further are accusations from the White House that Japan is intentionally undervaluing the yen – adding more friction to the talks.
🔹 Could the Deal Collapse?
According to CLSA analyst Nicholas Smith, Japan is in a strong position, but Ishiba can’t afford to fold. If he fails to win tariff relief, “he’ll be like a man on a conveyor belt heading straight for rotating blades.” Politically, it would be a disaster.
Still, Ishiba insists he won’t trade lower car tariffs for a blow to Japan’s farming sector – which employs a huge portion of the population.

#Tariffs , #TradeWars , #TradingCommunity , #Japan , #usa

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“