Economists and congressional Republicans have criticized a plan to impose tariffs on imported goods as potentially "disruptive" for American consumers. However, according to White House economics reporter Jeff Stein, Trump's aides are considering imposing the tariffs only on certain sectors deemed critical to national or economic security, such as the defense industrial supply chain, medical supplies and energy production. This move would reportedly jettison a key aspect of Trump's campaign pledge. The plan is still in flux, with no decisions finalized, and it remains unclear which imports or industries would face tariffs if implemented.
https://www.rawstory.com/trump-tariffs-2670749770/The US dollar experienced fluctuations in value against other currencies due to reports and actions by President-elect Donald Trump regarding tariffs and sanctions. The dollar initially dropped by 1% before recovering, as it is cheaper for buyers using other currencies when the dollar is weaker. This had an impact on oil prices, with Saudi Aramco raising crude prices for Asian buyers in February after a three-month decline. In contrast, annual inflation rose more than forecast in Germany due to higher food prices and lower energy price drops. The Biden administration plans to impose further sanctions on Russia over its war on Ukraine, targeting Russian oil revenues, while Goldman Sachs predicts Iranian oil production will decrease due to expected policy changes and tighter sanctions from the Trump administration.
https://www.khaleejtimes.com/business/energy/oil-prices-edge-up-to-12-week-high-on-us-winter-storm-weaker-us-dollarThe potential for broad-based tariffs proposed by US President Donald Trump has investors concerned about a surge in inflation, which could limit the Federal Reserve's ability to cut interest rates. According to James Knightley, an economist at ING Economics, if enacted, the tariffs could lead to $833 billion in cost increases for US importers, with 60% of that increase being absorbed by consumers through higher prices and companies absorbing some costs via lower profit margins. This could potentially lift inflation by as much as 2.5 percentage points.
https://markets.businessinsider.com/news/currencies/us-dollar-decline-trump-tariffs-truth-social-trade-economy-inflation-2025-1US President-elect Donald Trump has threatened to impose tariffs on China in response to what he sees as unfair subsidies for Chinese industrial products. However, China's economy is expected to expand by 5% in 2025, according to Xi Jinping, the country's leader. In a retaliatory move, China has penalized several major US defense firms, including Raytheon, Boeing, General Dynamics and Lockheed Martin, restricting their business activities with China. The move is seen as largely symbolic due to the limited business these companies do with Beijing, as weapons sales to China require a presidential waiver.
https://www.dailymail.co.uk/news/article-14255839/Trump-adversary-china.htmlA recent report suggests that US President Donald Trump's trade policies may not be as severe as initially feared, with early talks indicating a potential restriction on tariffs for specific goods whose supply chains the administration wants to bring back to the United States. This development has led to a rally in risk assets and a decline in the dollar and Treasury yields, according to Schamotta, although he notes that downside risks remain and there is no clear endpoint for this situation.
https://nypost.com/2025/01/06/business/trump-denies-fake-news-washington-post-report-that-he-will-scale-back-tariff-plan/Chinese Foreign Minister Wang is visiting four African countries - Namibia, the Republic of the Congo, Chad, and Nigeria - to enhance diplomatic ties and economic partnerships. The trip aims to deepen cooperation in areas such as infrastructure development, where China has made significant contributions in Africa. Analysts believe that the visit will promote sustained growth and development for both China and Africa, particularly in peace, stability, and development. This is part of a larger effort by China to advance win-win cooperation with African countries, as stated by Raphael Obonyo, an African youth and public policy analyst.
https://africanews.com/2025/01/06/chinese-fm-to-strengthen-ties-during-africa-visit/Bank of America strategists, including Winnie Wu, are warning investors to be cautious in 2025 due to uncertainties in global trades and economic growth caused by geopolitical dynamics. To mitigate this volatility, Shanghai and Shenzhen exchanges have pledged to continue opening up China's capital markets after meeting with foreign institutions over the weekend. Despite these efforts, the yuan has continued to weaken, reaching a 16-month low against the US dollar.
https://www.brecorder.com/news/40341279/china-stocks-fall-to-three-month-low-as-trade-growth-concerns-persistThe Japanese government plans to develop a strategy by 2025 to increase its defense equipment exports by enhancing the competitiveness of its defense industry. The goal is to expand the industry's market reach and accelerate related efforts in cooperation with the private sector, particularly as US President-elect Donald Trump's "America First" policy may limit international trade opportunities. To achieve this, the government will work with various agencies, including the defense and trade ministries, to set medium- and long-term targets for exports. The strategy will also incorporate opinions from industry stakeholders.
https://www.japantimes.co.jp/news/2025/01/05/japan/politics/japan-defense-exports-strategy/The Philippines and South Korea have agreed to phase out import duties of up to 30 percent on Korean automotive parts over the next five years, as well as taxes on electric and hybrid vehicles. This move is expected to boost exports of cars and auto parts from South Korea to the Philippines, allowing it to compete with other major automotive players such as Japan, the United States, and China. The free trade agreement (FTA) between the two countries also covers sectors including tropical fruits, minerals processing, and electric vehicle manufacturing, while safeguarding certain sensitive Philippine industries such as beverages, batteries, sugar, and agricultural goods. Bilateral trade between the Philippines and South Korea reached $12 billion in 2023.
https://www.manilatimes.net/2025/01/06/business/top-business/cheaper-korean-cars-parts-seen/2030570