United News of Bangladesh

US President Donald Trump declared a complete halt on all “reciprocal” tariffs that took effect at midnight, with the exception of those imposed on China. Trump announced that tariffs on China would rise from 104% to 125%, reports CNN. Meanwhile, Chief Adviser Muhammad Yunus has expressed his gratitude to President Trump for his decision. "Thank you, Mr. President, (@POTUS) for responding positively to our request for 90-day pause on tariffs. We will continue to work with your administration in support of your trade agenda," Chief Adviser's Press Secretary Shafiqul Alam said quoting Chief Adviser Prof Muhammad Yunus. In a post on Truth Social on Wednesday, Trump stated that he had “authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.” “Due to the lack of respect China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately,” Trump wrote on his social media. “At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable,” he added. The decision to raise tariffs on China followed Beijing's announcement of new retaliatory tariffs on the United States, set to take effect on Thursday. The Trump administration has specifically targeted China's trade practices, said the report. Treasury Secretary Scott Bessent praised Trump’s resolve, stating on Wednesday that Trump had “great courage to stay the course until this moment.” The administration has warned countries worldwide, “do not retaliate and you will be rewarded,” and expressed willingness to negotiate with any nation seeking to engage in talks, Bessent noted. Bessent emphasized that the move “signals that President Trump cares about trade and that we want to negotiate in good faith.” Both Bessent and Commerce Secretary Howard Lutnick were with Trump when he posted his message on Truth Social, Lutnick confirmed on a post on X,added the report. “Scott Bessent and I sat with the President while he wrote one of the most extraordinary Truth posts of his Presidency,” Lutnick wrote. “The world is ready to work with President Trump to fix global trade, and China has chosen the opposite direction.” Stocks surged following the announcement, with the Dow climbing 2,200 points, or 5.9%. The S&P 500 gained 6.5%, and the Nasdaq rose by more than 8%. The markets had been under pressure due to the potential for significantly higher tariffs, as outlined by Trump last week, the report also said. However, Trump did not indicate that he was pausing the 10% universal tariff on all trading partners, except for Canada and Mexico, which took effect over the weekend. As a result, countries that had reciprocal tariffs imposed on them would still face a 10% tariff, Bessent confirmed.

Addressing the complexities of global trade and its implications for countries like Bangladesh, Chief Executive Officer of Spanish clothing retailer Inditex Oscar Garcia Maceiras on Wednesday said the country is "better positioned" to capitalise on emerging global trade dynamics. He met with Chief Adviser Prof Muhammad Yunus at the State Guest House Jamuna and acknowledged the "moving parts" influencing the current global trade environment. The discussion centred on matters of mutual interest, including the evolving landscape of global trade, the expansion of cultural ties between Bangladesh and Spain, and Inditex's corporate social responsibility (CSR) initiatives within Bangladesh, said the Chief Adviser’s press wing. The Inditex CEO lauded the chief adviser's speech at the Bangladesh Investment Summit, describing it as "very inspirational". Change Bangladesh, world doing business in land of crazy ideas: Dr Yunus tells foreign investors Inditex is the biggest fast fashion group in the world. It owns a number of brands including Zara, Bershka and Massimo Dutti. Maceiras emphasised Bangladesh's pivotal role as a sourcing hub for Inditex, outlining the company's intent to deepen its partnership with the nation. "We have very strong ties. We are looking to strengthen the relationship," Maceiras said, adding that "Bangladesh is very business friendly for sourcing." Following visits to several Bangladeshi factories, Maceiras expressed his admiration for the diverse range of products manufactured within the country. He announced Inditex's commitment to funding the graduate and postgraduate education of at least 50 female workers from its Bangladeshi factories, through a newly signed agreement with the Asian University for Women in Chittagong. Furthermore, Maceiras revealed that Inditex has established an Inditex Chair for Spanish Language and Culture at Dhaka University. The chief adviser commended the company's social responsibility endeavours. Prof Yunus reminisced about his time in Spain and his longstanding association with former Spanish Queen Sofia. Strengthening healthcare system: Dr Yunus seeks greater collaboration with UK He urged Inditex to increase its investment in healthcare facilities for garment workers in Bangladesh. Company officials present at the meeting disclosed that Inditex will soon commence air-shipping cargo from Sylhet International Airport.    

Wall Street experienced some relief after an encouraging report revealed that inflation eased more than anticipated last month, allowing stocks to recover a portion of their steep losses from recent weeks. The S&P 500 climbed 1% in early trading Wednesday, following a brief dip a day earlier of more than 10% below its record high set last month. Vision unveils affordable 4D Ultra series air conditioner The Dow Jones Industrial Average gained 251 points, while the Nasdaq composite rose by 1.8%. Leading the gains were Big Tech stocks, which had previously suffered due to concerns that their valuations had become excessively high in recent years. Tesla, whose stock price had fallen by more than half since mid-December, rebounded with a 7% increase. U.S. futures and oil prices showed an upward trend. France's CAC 40 edged up 0.9% in early trading to 8,014.58, while Germany's DAX jumped 1.5% to 22,644.81, and Britain's FTSE 100 rose 0.5% to 8,542.24. U.S. shares appeared poised to move higher, with Dow futures gaining nearly 0.1% to 41,510.00 and S&P 500 futures climbing 0.6% to 5,610.00. The escalation of Trump's trade war has unsettled global markets. He increased tariffs on Canadian steel and aluminium, leading Ontario to remove a surcharge that had sparked his ire. Japan's benchmark Nikkei 225 remained mostly unchanged, rising by less than 0.1% to 36,819.09. Meanwhile, Hong Kong’s Hang Seng fell 0.9% to 23,566.42, while the Shanghai Composite slipped 0.2% to 3,371.92. Australia's S&P/ASX 200 dropped 1.3% to 7,786.20, whereas South Korea's Kospi advanced 1.5% to 2,574.82. Market sentiment remained subdued due to uncertainty over how much economic strain Trump is willing to endure to achieve his objectives. “Trump’s tariff policies continue to create instability in markets, leaving investors uncertain about which measures will be introduced or revoked next,” said Tim Waterer, chief market analyst at KCM Trade. Actions taken by Trump and remarks from the White House on Tuesday provided little clarity. White House press secretary Karoline Leavitt stated, “The president will look out for Wall Street and for Main Street.” Recent market fluctuations have been accompanied by further warning signs regarding the economy, as Trump’s inconsistent tariff implementation generates confusion and pessimism among U.S. households and businesses. These tariffs have the potential to directly harm the economy by driving up costs for American consumers and disrupting global trade. Even if their impact is less severe than feared, the constant uncertainty may deter U.S. businesses and consumers from investing or spending. In energy markets, benchmark U.S. crude rose by 34 cents to $66.59 per barrel, while Brent crude, the global standard, increased by 31 cents to $69.87 per barrel. Stock market trends maintain upward momentum in Dhaka, Chattogram In currency trading, the U.S. dollar strengthened to 148.50 Japanese yen from 147.78 yen, while the euro inched up to $1.0921 from $1.0919.

The United Nations Conference on Trade and Development (UNCTAD) has expressed profound concerns over the escalating disruptions in global trade, particularly stemming geopolitical tensions affecting shipping in the Black Sea, recent attacks on shipping in the Red Sea affecting the Suez Canal and the impact of climate change on the Panama Canal. UNCTAD underscored the critical role maritime transport plays as the backbone of international trade, responsible for over 80% of the global movement of goods, said the UN trade and development body on Friday in Geneva. Developing countries are particularly vulnerable to these disruptions and UNCTAD remains vigilant in monitoring the evolving situation. The organization emphasizes the urgent need for swift adaptations from the shipping industry and robust international cooperation to navigate the rapid reshaping of global trade dynamics. Hungary, Kyrgyzstan greet PM Sheikh Hasina on her re-election The current challenges underscore trade's vulnerability to geopolitical tensions and climate-related challenges, demanding collective efforts for sustainable solutions especially in support of countries more vulnerable to these shocks. Trade disruption in the Black Sea, the Panama Canal and the Suez Canal routes. The recent attacks on Red Sea shipping, coupled with existing geopolitical and climate-related challenges, have given rise to a complex crisis affecting key global trade routes. UNCTAD estimates that the weekly transits going through the Suez Canal decreased by 42% over the last two months. The ongoing conflict in Ukraine has triggered substantial shifts in oil and grain trades, reshaping established trade patterns. Simultaneously, the Panama Canal, a pivotal conduit for global trade, is grappling with diminished water levels, resulting in a staggering 36% reduction in total transits over the past month compared to a year ago. The long-term implications of climate change on the canal's capacity are raising concerns about enduring impacts on global supply chains. The crisis in the Red Sea, marked by Houthi-led attacks disrupting shipping routes, has added another layer of complexity. France wants to have more strategic collaboration, partnership with Bangladesh Major players in the shipping industry have temporarily suspended Suez transits in response. Notably, container ship transits per week have plummeted by 67% compared to a year ago, with container carrying capacity, tanker transits, and gas carriers experiencing significant declines. The surge in the average container spot freight rates during the last week of December, by plus 500 dollars, in one week, was the highest ever weekly increase. Average container shipping spot rates from Shanghai this week are up by 122% compared to early December. i.e. have more than doubled. The rates from Shanghai to Europe went up by 256%, i.e. more than tripled. Rates to the United States West coast also increased above average, although they do not go through Suez. They increased by 162%. Here we see the global impact of the crisis, as ships are seeking alternative routes, avoiding the Suez and the Panama Canal. The cumulative effect of these disruptions translates into extended cargo travel distances, escalating trade costs, and a surge in greenhouse gas emissions from shipping having to travel greater distances and at greater speed. Avoiding the Suez and Panama Canal necessitates more days of shipping, resulting in increased expenses. The price per day of shipping and insurance premiums have surged, compounding the overall cost of transit. New Bangladesh offering amazing investments opportunities: FM Hasan tells German Ambassador Additionally, ships are compelled to travel faster to compensate for detours, burning more fuel per mile and emitting more CO2, further exacerbating environmental concerns. Global Implications: increases in food and energy prices. UNCTAD underscored the far-reaching economic implications of these disruptions. Prolonged interruptions, particularly in container shipping, pose a direct threat to global supply chains, potentially leading to delayed deliveries and heightened costs. While current container rates are approximately half of the peak during the Covid crisis, passing on higher freight rates to consumers takes time, with the full impact expected to manifest within a year. Energy prices are witnessing a surge as gas transits are discontinued, directly impacting energy supplies, especially in Europe. The crisis is also reverberating in global food prices, with longer distances and higher freight rates potentially cascading into increased costs. Disruptions in grain shipments from Europe, Russia, and Ukraine pose risks to global food security, affecting consumers and lowering prices paid to producers.

The upcoming summit of BRICS, a group of major emerging economies – Brazil, Russia, India, China and South Africa, holds significant implications for global geopolitics, reported Modern Diplomacy on Friday (August 11, 2023). The summit has its central agenda revolving around the launch of a common currency among the member nations, the report said, adding that the move, aimed at reducing the dominance of the U.S. Dollar in international trade, has the potential to reshape the geopolitical landscape and challenge American supremacy. "For decades, the U.S. Dollar has reigned supreme in global trade and transactions, affording the United States unparalleled economic and geopolitical leverage. The U.S. has been using dollar and economy as tools to coerce and pressurize its adversaries," it said. "Imposing sanctions was a common tool against its rivals to achieve political goals." 2023 BRICS Summit: Lot of interest in how new members are chosen and which countries would be eligible There has been a growing sentiment against the U.S. hegemony, supremacy and coercion. "The proposed launch of a BRICS common currency or de-dollarization aims to alter this status quo, potentially diminishing the American influence and power that is closely tied to the dollar's dominance," it said. "BRICS is a strong Alliance and plays a huge role in Global Trade and Investments, and above all, it is above American influence," it added. "BRICS is in a position to transform the global economy in total. This move represents a growing discontent with the U.S. dollar's global dominance and a push toward Eastern superiority." BRICS Summit: PM Hasina’s meetings on sidelines yet to be confirmed, says foreign ministry spokesperson

The UN trade facilitation agency has said global trade is set to hit a record high of $32 trillion for 2022, but inflation has reversed some of the gains made in recent months. The global growth turned negative during the second half of 2022, UNCTAD added. "Trade in goods and services is expected to reach $25 trillion and $7 trillion, respectively, by the end of the year. The downturn began in the third quarter of the year, with goods trading about one percent lower than from March to May," the UN agency said. Although services increased by 1.3 percent in the third quarter, both goods and services are expected to fall in value in the run-up to the end of the year, according to the latest global trade update of UNCTAD. Demand for foreign goods proved resilient through 2022, with trade volumes overall increasing by three percent. Trade volumes of east Asian economies have shown resilience, while South-South trade lagged during the third quarter. Read more: Bangladesh govt aims to increase money supply over next two fiscals Overall, geopolitical frictions, persisting inflation, and lower global demand are expected to negatively affect global trade during 2023, UNCTAD said.

Global trade in medical goods saw 16.3% growth in 2020, compared to 4.7% in 2019 when the Covid-19 pandemic just started unfolding, according to the World Trade Organisation (WTO). Exports of medical products – including medicines, medical equipment and personal protective equipment (PPE) – rose more than 16%, underscoring how trade has been a lifeline for access to critical goods through the pandemic, after the initial disruptions. The share of medical goods in the world merchandise trade grew from 5.3% in 2019 to 6.6% in 2020. Trade in medical goods increased significantly in 2020, with trade in PPEs growing the most – more than 47.2%. Read: WTO to start Covid-19 vaccine supply negotiations amid clash on patents Medicine represented 52% of world trade in medical goods in 2020, according to World Trade Statistical Review 2021 issued by the WTO.

Britain and Australia had agreed on a free trade deal that will be released later Tuesday, Australian Trade Minister Dan Tehan said. The agreement is the first for Britain since it left the European Union. British Prime Minister Boris Johnson and his Australian counterpart Scott Morrison had reached agreement on the deal during negotiations in London, Tehan said. Read:Odds of settling US-EU trade rifts? Hope may outrun progress “Both prime ministers have held a positive meeting in London overnight and have resolved outstanding issues in relation to the FTA,” Tehan said in a statement, referring to the Free Trade Agreement. “Their agreement is a win for jobs, businesses, free trade and highlights what two liberal democracies can achieve while working together,” Tehan added. Both prime ministers would make a formal announcement on Tuesday morning in London and release further information, he said. Tehan said he spoke to Morrison on Tuesday. Australian Agriculture Minister David Littleproud described the deal as a “in-principle agreement.” Read:OPEC to boost oil output as economies recover, prices rise “The details are being nutted out from the in-principle agreement that our two prime ministers were able to get to last night over dinner,” Littleproud told Australian Broadcasting Corp. “Our departments and the Trade Department are working through feverishly to make sure that an announcement can be made at our time tonight so that Australians will see exactly what is in that in-principle agreement,” he added. The agreement is Australia’s 15th free trade agreement. RMIT University international business expert Gabriele Suder said the deal was good news for both Britain and Australia. Read:Australian court upholds ban on most international travel “It’s wonderful news for the U.K. ... in particular because this is the first post-Brexit deal that has been really constructed from scratch, negotiated from scratch, and in addition has been negotiated in a record time of just one year, which is very, very unusual for free trade agreement negotiations,” Suder said. Britain is Australia’s fifth-largest trading partner. Suder said she expected the deal would add 1.3 billion Australian dollars ($1 billion) a year to the Australian economy.

President Joe Biden has vowed to mend America’s trade relations with its European allies, which were stretched to the breaking point by President Donald Trump’s mercurial behavior, combative policies and aversion to multinational alliances. Yet when he meets Tuesday with European Union leaders in Brussels, Biden may find that making up is hard to do. The prospect of forging an accord to resolve their differences — and perhaps form a united front against an increasingly confrontational China — may be stymied by European skepticism. Sounding a sour note about Biden’s intentions, Valdis Dombrovskis, a Latvian political leader who serves as the European Union’s trade chief, said in speech last week that the time had come “for the U.S. to walk the talk.” Dombrovskis was referring in part to Trump’s 2018 decision to impose import taxes on foreign steel and aluminum — a decision that left European leaders furious and triggered retaliatory steps against the United States. Biden has been slow to take up the possibility of dropping the tariffs, which Trump had imposed on the basis of “national security.” Read:OPEC to boost oil output as economies recover, prices rise Asked about the tariffs during a news conference Sunday as he wrapped up his time at the Group of Seven summit in the U.K., Biden pleaded for patience with his young administration, saying, “A hundred and twenty days. Give me a break. Need time.” And with trade tensions still shading the trans-Atlantic relationship, the EU may also prove reluctant to join a U.S.-led effort to confront China over its provocative trade policies. Then there’s a longstanding dispute over how much of a government subsidy each side unfairly provides for its aircraft manufacturing giant — Boeing in the United States and Airbus in the EU. “This has been going on for 17 years,” says Cecilia Malmström, a veteran of trans-Atlantic battles as the European trade commissioner from 2014 to 2019. All that said, U.S.-EU relations are still certain to be much friendlier than they were under Trump, who regularly accused the Europeans of shirking their responsibility to pay for their own defense through NATO and of exploiting what he called unfair trade deals to sell far more products to the United States than they buy. In a goodwill gesture in March, the Biden administration and the EU did agree to suspend the tariffs they had imposed on each other in the Airbus-Boeing battle. Several news outlets have reported that U.S. and EU diplomats are working on a draft communique that would call for the Boeing-Airbus dispute to be resolved by July 11 and for the U.S. steel and aluminum tariffs — and the EU’s retaliatory sanctions — to be lifted by Dec. 1. Read:Biden directs US to mitigate financial risk from climate The Biden administration also announced Friday that Commerce Secretary Gina Raimondo would be joining the U.S. delegation; her department administers the steel and aluminum tariffs. Kelly Ann Shaw, a former Trump administration trade official who is now a partner at the law firm Hogan Lovells, suggested that the EU and U.S. are eager to move past their tariff battles “so they can move on and tackle some 21st century challenges, not the least of which is China.” Last week, though, Biden’s national security advisor, Jake Sullivan, sounded noncommittal in speaking with reporters on Air Force One. “There has been good progress in those negotiations,” Sullivan said of the Boeing-Airbus dispute. “But I’m making no promises about what might happen.” Regarding the U.S. steel and aluminum tariffs, Sullivan noted that the EU agreed last month to suspend plans to escalate retaliatory tariffs on U.S. products — a concession meant to ease tensions and encourage further negotiations. But he added: “That’s going to take some time to work out.” Asked specifically whether the United States would be rolling back the metals tariffs, Sullivan shook his head. Read:Ji'nan to hold ‘Dialogue Sessions of 2021 for Executives from Multinational Corporations (Ji'nan) & China-Japan Industrial Innovation and Development Exchange Conference’ The steel and aluminum dispute is an especially sensitive one. In moving to tax imported metals, Trump dusted off a little-used weapon in U.S. trade policy to justify the tariffs: He declared the foreign metals to be a threat to U.S. national security — a decision that startled and outraged Europeans and other longstanding American allies. “Almost all the EU members were NATO members,” said Malmström, now a senior fellow at the Peterson Institute for International Economics. “How could we be a national security threat? It was offensive.” Malmström said she was surprised that Biden hasn’t already dropped the tariffs and hopes he will do so at the summit Tuesday. “Maybe he’s saving this as a gift,” she said. Complicating the political calculus for Biden is that U.S. labor unions and steel and aluminum producers — some of them concentrated in states important to Democratic election prospects — want to maintain the tariffs on the imported metals to help keep prices up. A key reason is that China, which churns out more than half the world’s steel, has contributed to an oversupply that has otherwise kept global prices down. Demonstrating a united U.S.-EU challenge to China’s aggressive policies could strengthen the trans-Atlantic negotiating leverage. But Malmström said she is skeptical about whether the EU is eager to join the United States to face up to China and force a reckoning over its trade practices. Read:Apple brings CEO Tim Cook to court in defense of app store The Trump administration’s imposition of tariffs on $360 billion of Chinese goods came against the backdrop of a roiling conflict over the predatory tactics that China is widely accused of deploying to try to supplant America’s global technological dominance. Many trade experts say Beijing has coerced American companies to hand over trade secrets as the price of access to its market, forced U.S. businesses to license technology in China on unfavorable terms, used state funds to buy up American technology and committed outright theft. Critics, including Biden, had lambasted Trump for alienating would-be allies like the EU instead of enlisting them to help challenge Beijing. For now, though, Biden hasn’t called off Trump’s trade war against China. Malmström noted that among the EU’s 27 member countries, “there is no full unanimity on how to deal with China.” She suggested that the EU might go along with the United States on specific measures — perhaps cracking down on Beijing’s subsidies to its own companies, for example — but still stop short of joining the United States in any wide-ranging confrontation with China. “The EU will not just sign up to a U.S. agenda on the bottom line,” she said. “The EU is not in trade war mode against anyone.’’

North Korean leader Kim Jong Un presented economic plans to senior ruling party officials before an upcoming meeting to review efforts to overcome hardships brought about by the pandemic, state media said Tuesday. The Korean Central News Agency said Kim held his consultations Monday in preparation for a meeting of the Workers’ Party’s powerful Central Committee at which they will discuss state affairs for the first half of 2021. The meeting was set for early June and could take place as early as this week. Read:After Trump setbacks, Kim Jong Un starts over with Biden Kim’s plans were not specified but were described as intending to bring “tangible change” to stabilizing the economy and people’s living conditions. The North Korean economy has been crippled by decades of mismanagement, U.S.-led sanctions over Kim’s nuclear weapons program and the coronavirus pandemic. South Korean officials say there are no signs North Korea is easing the border controls it imposed at the start of the pandemic or importing more industrial and agricultural materials to boost production. The Workers’ Party last held a plenary meeting of Central Committee members in February, when Kim ripped into state economic agencies for their “passive and self-protecting tendencies” in setting their annual goals. Earlier in the year, at the party’s first congress since 2016, Kim urged his people to be resilient in the struggle for economic self-reliance and called for reasserting greater state control over the economy, boosting agricultural production and prioritizing the development of chemicals and metal industries. Those sectors have been critically depleted by sanctions and halted imports of factory materials amid the pandemic. Read:North Korea holds huge military parade as Kim vows nuclear might Kim has shown unusual candor in addressing the North’s economic problems in recent political speeches, saying that the country was facing its “worst ever” situation due to COVID-19, sanctions and heavy flooding last summer that decimated crops. He even called for his people to brace for another “arduous march,” a term that had been used to describe a 1990s famine that killed hundreds of thousands. In a meeting of the Workers’ Party’s political bureau last week, Kim expressed appreciation that a lot of economic works were being sped up thanks to the “ideological enthusiasm and fighting spirit of self-reliance” demonstrated by the party and his people. But he also said there was a need to correct unspecified “deflective matters,” which he said would be discussed at Central Committee’s plenary meeting. While North Korea monitoring groups have yet to detect signs of mass starvation or major instability, some analysts say conditions could be aligning for a perfect storm that undercuts food and exchange markets and triggers public panic. The Geneva-based Assessment Capacities Project, a nonprofit that specializes in humanitarian needs assessment, said in May that it considers North Korea to be at high risk of a humanitarian crisis. It said poor economic governance, repressive political measures and an increasing dependence on internal production amid a cutback in imports have negatively impacted the country’s population. “Chronic food insecurity and limited access to basic services, such as health care and clean water, have left more than 10 million people in need of humanitarian assistance,” the group said. Read:North Korea’s Kim adds title: General secretary of ruling party The economic setbacks have left Kim with nothing to show for his ambitious diplomacy with former President Donald Trump, which failed to bring the North sanctions relief, and the North has so far ignored the Biden administration’s calls to resume dialogue. Some experts say Kim could use the upcoming Central Committee meeting to address the stalled diplomatic efforts.