International News 02 May 2025
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JPMorgan CEO issues dire warning for US economy
The United States economy has experienced significant turbulence during the initial three months of President Donald Trump's second term in office, leading to widespread concern among investors, businesses, and the general public. The US stock market has experienced significant declines and fluctuations, leading to speculation that the country may be entering a recession or facing an economic crisis. There have been reports of closed-door meetings between business leaders and government officials, with alarming conclusions being drawn. Jamie Dimon, the influential CEO of JPMorgan, has issued a warning that a mild recession is the best-case scenario for the US economy due to the pressure from the ongoing trade war. These developments underscore the present economic challenges and uncertainties confronting the country.
Tariff War Softens? China lifts 125% tariff on US ethane imports
In a surprising move, China has lifted the 125% tariff on ethane imports from the United States, signalling a shift in the ongoing trade war between the two countries. This decision demonstrates that Beijing is taking into account the needs of its domestic industry whilst also facing external pressure from President Trump's tariff policies. The imposition of high tariffs on ethane was initially a response to Trump's tariff campaigns. However, the Chinese government is now granting exemptions for certain key commodities, including ethane. China's petrochemical industry is heavily reliant on ethane from the US, with approximately 50% of US ethane exports going to China every year. Key chemical companies in China, including Satellite Chemical and SP Chemicals, rely on ethane supplies from the US.
Economic weakness still haunts, China's manufacturing PMI falls in April 2025
Two Purchasing Managers' Index (PMI) surveys for China's manufacturing sector were recently published by the National Bureau of Statistics of China (NBS) and Caixin. According to the Caixin PMI, China's manufacturing activity fell to 50.4 in April, marking the weakest growth since January but still surpassing expectations. This suggests that the country's economic recovery is being supported by Beijing's stimulus measures. In contrast, the NBS Manufacturing PMI data indicated a decline to 49.0 in April, signifying the first contraction in factory activity since January. This suggests that, despite the stimulus measures and efforts to address the trade war with the US, the manufacturing sector is facing challenges. Employment also saw a decline, indicating further pressure on the economy.