International News 15 April 2025
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China's exports rose 12% in March 2025, but trade war dark clouds loom large
In March, China's exports grew more than expected, rising by 12.4% compared to the expected 4.4%. This was because companies had already sent goods to the US before the US put new taxes on goods from other countries. But the ongoing trade war between the two largest economies in the world is still affecting China's growth. At the same time, imports fell by 4.3%, which is worse than the expected 2.0% drop. The trade problems started by US President Donald Trump have caused problems for the financial markets. Trump temporarily stopped putting up tariffs for some countries, but put up tariffs on China a lot, which made China put up tariffs on some American products. Even though China is facing some economic problems at home, its exports are still doing well as it tries to recover.
Trump will announce import tariffs on semiconductors next week. Donald Trump will announce import tariffs on semiconductors next week
US President Donald Trump has announced his intention to impose tariffs on semiconductor imports in the coming week. He stated that there would be some flexibility for certain companies in the sector. These comments were made during Mr Trump's return to Washington from Florida via Air Force One. Earlier, he had announced a national security investigation into the semiconductor sector and electronics supply chain from China, implying that new tariffs would be implemented on products like chips, smartphones, and computers. Trump clarified that, although smartphones and computers were temporarily exempted from reciprocal tariffs on Chinese imports, these exemptions were not permanent. This decision could have significant implications for the semiconductor industry and the electronics supply chain.
MAS Loosens Monetary Policy, Singapore Growth Outlook Trimmed
The Monetary Authority of Singapore (MAS) has announced a second easing of its monetary policy this year as it prepares for a gloomy outlook for global growth and trade. The central bank will slightly reduce the pace of appreciation of its exchange rate-based policy, known as the Nominal Effective Exchange Rate (S$NEER). The width and midpoint of the exchange rate corridor will remain unchanged. This decision aligns with market expectations and is a response to the global economic slowdown. Singapore's high dependence on trade and its close linkages in global supply chains mean that the central bank anticipates the impact of the global slowdown on export-oriented sectors and the possibility of spillovers into the domestic sector. In other economic news, Singapore's Ministry of Trade and Industry (MTI) reported a slowdown in the country's Gross Domestic Product (GDP) growth for the first quarter of 2025.