International News 14 April 2025
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Asian stocks gain on Monday morning, take a breath after Trump delays tariffs on electronics
Asian stock markets opened higher following US President Donald Trump's decision to postpone the imposition of new tariffs on consumer electronics. The delay excludes a range of technology products, including semiconductors, from the new tariffs. However, uncertainty remains as products are still subject to the 20% 'Fentanyl Tariff' already in place, albeit in a different category. US Secretary of Commerce Howard Lutnick emphasises that the tariff exemption is temporary and subject to change. Meanwhile, several Asian countries are preparing for trade negotiations with the US. Trump is exploring cooperation with strategic trading partners such as Vietnam, India, South Korea, and Japan as part of a strategy to balance China's influence.
Deloitte: UK Companies Tighten Cash Flow and Cut Costs Ahead of Trump Tariffs
In light of the recent announcement by US President Donald Trump regarding new tariffs, Britain's largest companies are implementing defensive measures. According to a survey by Deloitte, the focus of these companies has shifted to improving cash flow, reducing costs, and lowering debt. While there remains a degree of optimism regarding financial prospects, this is lower than at any point in the period following the invasion of Ukraine by Russia and the onset of the pandemic. Defensive strategies have become more prevalent. The survey also found that 63% of CFOs cited cost-cutting as their top priority, the second-highest figure on record. Conversely, only 20% are prioritising new product launches or expansion into new markets. The survey also revealed that businesses are anticipating a substantial reduction in hiring. The uncertainty surrounding the US tariff increases has contributed to increased levels of uncertainty among CFOs.
Trump waives tariffs on mobile phones, computers and electronics from China
The Trump administration has granted exemptions from high tariffs for certain electronics, including smartphones and computers, mostly imported from China. This decision will provide much-needed relief to tech companies, particularly Apple, who heavily rely on these imported products. The US Customs and Border Protection (CBP) has published a list of tariff codes that are now exempt from import taxes, covering items such as computers, laptops, disc drives, and various semiconductor devices. The exemption is retroactive from 5 April and applies to major technology companies such as Apple and Dell Technologies. The exemption will also reduce the cost of importing semiconductors from Taiwan and Apple iPhones manufactured in India. This announcement is generally viewed as positive news for the technology industry.