International News 11 July 2025
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Bangladesh Garment Industry Faces Crisis as Trump Imposes 35% Tariff on Imports
The garment industry in Bangladesh—vital to the country’s economy and employing over 4 million people—is facing an existential threat after U.S. President Donald Trump announced a 35% tariff on Bangladeshi imports, effective August 1. The U.S. is Bangladesh’s largest export market, and the new tariff has already triggered fears of mass layoffs, order cancellations, and factory closures. Major American brands like Gap Inc. and VF Corporation are reportedly pausing new orders, awaiting further trade developments. This policy disproportionately impacts Bangladesh compared to regional competitors like Vietnam (20%) and India (undecided), weakening its price competitiveness. Economists warn of potential economic contraction, rising poverty, and increased unemployment—especially among women, who make up the majority of garment workers. Personal stories, such as that of Raimoni Bala, a 32-year-old seamstress and mother of two, reflect the broader anxiety: “If I lose this job, I don’t know what will happen to us.” As trade talks between Dhaka and Washington continue, time is running out to avert a humanitarian and economic crisis.
Copper Shipments to the U.S. Surge Ahead of Looming 50% Import Tariff
Copper shipments to the United States are expected to surge over the next few weeks as traders rush to beat the 50% import tariff announced by President Donald Trump, set to take effect by late July or August 1. The announcement triggered a more than 12% spike in U.S. Comex copper futures, reaching record highs. Market participants are racing to deliver cargo already in transit or sourced from Latin America, as new shipments may miss the deadline. Analysts at Morgan Stanley and J.P. Morgan noted that some Chilean exports originally bound for China are being redirected to the U.S. to take advantage of high price premiums, which reached US$2,600 per ton. However, post-deadline, U.S. market appeal is expected to decline, potentially easing supply pressure elsewhere. Copper prices on the LME and SHFE fell slightly after the announcement, but tight global supply may limit further price drops.
Malaysia Cuts Interest Rates to Cushion Economy Amid Global Trade Uncertainty
Bank Negara Malaysia (BNM) has cut its overnight policy rate (OPR) by 25 basis points to 2.75%, responding to slowing growth and rising global trade tensions. This is the first rate cut since May 2023 and follows U.S. President Donald Trump’s recent announcement of a 25% tariff on Malaysian exports. BNM emphasized that while Malaysia’s economic fundamentals remain strong, external uncertainties — including geopolitical tensions and volatile commodity markets — could impact growth prospects. The central bank also reduced the statutory reserve requirement by 100 basis points in May to support liquidity, signaling a dovish policy stance. Malaysia’s Q1 growth slowed to 4.4%, exports dropped in May, and inflation remains subdued at 1.2% in June — the lowest in four years. Prime Minister Anwar Ibrahim has already lowered expectations for 2025 growth, and BNM is revising its forecast amid the new tariff environment. Inflation is expected to stay moderate, with overall 2025 inflation forecasted at 2%–3.5%.