Southeast Asia should use the sway of its shared market of 650 million people and speak with ‘one voice’ to ensure it is treated fairly in an age of protectionism, Malaysian Prime Minister Mahathir Mohamad said Saturday as leaders gathered for a regional summit.
US President Donald Trump has touted his partial, unsigned trade deal with China as a major achievement and the best deal US farmers have ever secured, but the grievances that led Washington and Beijing to impose massive tariffs on each other’s goods remain largely unresolved.
The recent escalation in the US-China trade war has brought forward the next US recession, according to a majority of economists polled by Reuters who now expect the Federal Reserve to cut rates again in September and once more next year.
Australia’s central bank held rates at an all-time low of one percent on Tuesday as it weighed the impact of past easing, though markets are wagering the tide of policy stimulus sweeping the world will compel it to cut again before year-end.
Malaysia will find it challenging to meet its three percent fiscal deficit target for next year due to uncertainties around the US-China trade war, the finance minister told Reuters in an interview on Monday.
China and the United States will face a long road before they can reach a deal to end their bitter trade war, with more fights ahead likely, Chinese state media said after the two countries’ presidents held ice-breaking talks in Japan.
The Bank of Japan is expected to maintain its massive stimulus program on Thursday and signal its readiness to ramp up monetary support if growing risks such as the escalating US-China trade war threaten the economy’s modest expansion.
South Korea’s exposure to a stressed global manufacturing supply chain has knocked its currency — Asia’s most risk sensitive — to over two-year lows as investors use it as a proxy to bet on the economic costs of a protracted US-China trade war.
US President Donald Trump on Tuesday defended the use of tariffs as part of his trade strategy while China vowed a tough response if the United States insists on escalating trade tensions amid ongoing negotiations.