ASEAN countries are facing a difficult problem: meeting the trade demands of the U.S. while maintaining economic relations with China in the context of unclear U.S. intentions.
This article will provide an overview of the upcoming context, so that the brothers can have an investment plan this year. Although many people talk about the news legitimizing price trends, if the news can be synthesized to foresee future scenarios, it may be possible to predict price trends (combined with technical analysis) to increase the probability of winning in the market.
Before China, the U.S. reached its first agreement with the UK on May 8. Although the 10% tariff on all imported goods to the U.S. remains unchanged, tariffs on certain export items from the UK, such as cars, steel, and aluminum, have been reduced. (Note: The U.S. still has many rounds of negotiations with China, and there’s no telling if they will change at the last minute)
Former U.S. Deputy Trade Representative Wendy Cutler, now Vice President of the Asia Society Policy Institute, noted a few points from these two agreements that may apply to other negotiations. She told The Straits Times: “These agreements have fewer specific commitments and focus more on laying the groundwork for future negotiations. They show that the U.S. is willing to be pragmatic and flexible. However, there is no doubt that the general 10% tariff will still be maintained.”
It is being transferred to ASEAN countries to evade U.S. tariffs imposed on China. Ms. Cutler stated that U.S. trade partners will have to balance meeting U.S. demands while not going too far to anger Beijing.