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France on Friday praised steps taken by China to settle a long-running trade dispute concerning European brandies but warned that a number of “major issues” remained unresolved.The tentative signs of a thaw in the row over the prized tipples came as China’s Foreign Minister Wang Yi was set to meet French President Emmanuel Macron and Foreign Minister Jean-Noel Barrot in Paris later Friday.In recent months China and the European Union have butted heads over Beijing’s generous subsidies for its domestic industries.Beijing launched an investigation last year into EU brandy, months after the bloc undertook a probe into Chinese electric vehicle (EV) subsidies.In the latest salvo in the trade spat, from Saturday China will require major European brandy exporters to raise prices or risk anti-dumping taxes of up to 34.9 percent.But Beijing also said that several major French cognac producers had signed onto a price commitment to avoid the tariffs as long as they sell at or above an agreed minimum price.France’s umbrella cognac makers association BNIC, which includes key producers from Hennessy to Remy Cointreau and Martell, confirmed that market players had agreed to price increases in China to avoid anti-dumping taxes.French cognac and liqueur maker Remy Cointreau pointed to “an alternative that is significantly less punitive than the application of definitive anti-dumping duties.”- ‘Positive step’ – Both Macron and Barrot praised China’s steps to resolve the dispute but stressed they would discuss the outstanding differences with Wang.”This is a positive step towards resolving this dispute, which was threatening our exports,” Macron said on X.”I will continue to raise these issues with the Chinese authorities this afternoon.”In a statement to AFP Barrot said: “Several major issues remain unresolved, in particular the exclusion of certain players from the scope of the exemptions.” “We remain fully committed to reaching a definitive solution based on the conditions that existed prior to the investigation,” he said.China’s Wang held fraught meetings with his counterparts during a tour of Europe earlier this week.Almost all EU brandy is cognac produced in France, exports of which to China are worth 1.4 billion euros ($1.6 billion) per year.French liquor giant Jas Hennessy said it would be hit with levies of 34.9 percent if it reneges on the deal.Remy Martin will be hit with 34.3 percent and Martell 27.7 percent.”The decision to accept the price commitment once again demonstrates China’s sincerity in resolving trade frictions through dialogue and consultation,” a Chinese commerce ministry spokesperson said in a statement.However, the European Commission said Friday after the announcement that it “regrets China’s decision”.”We believe that China’s measures are unfair. We believe they are unjustified,” said the commission’s trade spokesman, Olof Gill.”We believe they are inconsistent with the applicable international rules and are thus unfounded.”- Upcoming summit -China has sought to improve relations with the European Union as a counterweight to superpower rival the United States.But deep frictions remain over their economic relationship, including a yawning trade deficit of $357.1 billion between China and the EU, as well as Beijing’s close ties with Russia despite Moscow’s war in Ukraine.A trade row between Beijing and the bloc erupted last summer when the EU moved towards imposing hefty tariffs on electric vehicles imported from China, arguing that Beijing’s subsidies were unfairly undercutting European competitors.Beijing denied that claim and announced what were widely seen as retaliatory probes into imported European pork, brandy and dairy products.The bloc imposed extra import taxes of up to 35 percent on Chinese EV imports in October.Beijing later lodged a complaint with the World Trade Organisation, which said in April that it would set up an expert panel to assess the EU’s decision.China and the EU are scheduled to hold a summit this month to mark the 50th anniversary of the establishment of diplomatic ties.Bloomberg News reported on Friday, citing unnamed sources, that Beijing intends to cancel the second day of the summit, a sign of tensions between Beijing and Brussels.

Most equities fell Friday as Donald Trump’s deadline to avert his steep tariffs approached, with the US president saying he planned to start sending letters informing trading partners of their rates.Uncertainty leading up to next week’s cut-off tempered the positive lead from another record on Wall Street, where a forecast-busting US jobs report soothed worries about the world’s top economy.Governments around the world have fought to hammer out deals with Washington ahead of the July 9 deadline, set after Trump unveiled a blitz of levies in early April.He and his top officials have said several were in the pipeline, but only Britain and Vietnam have signed pacts while China has agreed to a framework for it and the United States to slash tit-for-tat tolls and ship certain products.While negotiators continue to seek ways to avert the worst of the White House’s measures, Trump warned Thursday he would soon be issuing notices to capitals.”My inclination is to send a letter out and say what tariff they’re going to be paying,” he told reporters. “It’s just much easier.”He added: “We’re going to be sending some letters out, starting probably tomorrow, maybe 10 a day to various countries saying what they’re going to pay to do business with the US.”The prospect that trading partners from Japan and South Korea to India and Taiwan could be hit with stiff tariffs fuelled fresh worries about the global economy.Hong Kong extended a recent losing streak, with Seoul, Singapore, Taipei, Mumbai, Bangkok, Jakarta and Manila also falling.London, Paris and Frankfurt fell at the open.Still, Tokyo edged up with Shanghai, Sydney and Wellington.Traders were unable to pick up the baton from their New York colleagues, who sent the S&P 500 and Nasdaq to more record closes ahead of the Independence Day break.Those gains followed data showing the US economy topped expectations to add 147,000 jobs in June while unemployment dipped to 4.1 percent from 4.2 percent, which was also better than estimated.The reading was taken as a sign the labour market remained in rude health despite warnings about the impact of Trump’s tariffs.It also dented hopes that the Federal Reserve will cut interest rates at its next meeting this month, with bets now on two reductions before the end of the year — the first likely in September.However, analysts suggested that all was not what it seemed, pointing to softness in the private sector.”We think that private-sector hiring has stalled, and we may see sporadic layoffs in some industries in the coming months,” warned analysts at MUFG.”Despite the unemployment rate having fallen… the flow of potential workers that remained out of the labour force rose sharply in June (and over 750k have dropped out of the labor force over the past two months), further highlighting the weak hiring environment. “We continue to view labour demand as being fundamentally weak relative to the past several years.”The passage of Trump’s “Big, Beautiful Bill” also left investors in a quandary as they weighed the extension of huge tax cuts and less spending with forecasts that it will add around $3 trillion to the already ballooning national debt.Still, it included a $5 trillion increase in the debt limit, removing the risk the country could default on its bond payments.- Key figures at around 0810 GMT -Tokyo – Nikkei 225: UP 0.1 percent at 39,810.88 (close)Hong Kong – Hang Seng Index: DOWN 0.6 percent at 23,916.06 (close)Shanghai – Composite: UP 0.3 percent at 3,472.32 (close)London – FTSE 100: DOWN 0.3 percent at 8,801.21Euro/dollar: UP at $1.1773 from $1.1755 on ThursdayPound/dollar: UP at $1.3664 from $1.3642Dollar/yen: DOWN at 144.38 yen from 145.06 yenEuro/pound: UP at 86.17 pence from 86.14 penceWest Texas Intermediate: FLAT at $67.02 per barrelBrent North Sea Crude: DOWN 0.2 percent at $68.70 per barrelNew York – S&P 500: UP 0.8 percent at 6,279.35 (close)New York – Nasdaq Composite: UP 1.0 percent at 20,601.10 (close)

Asian investors trod cautiously on Friday as Donald Trump’s deadline to avert his steep tariffs approached, with the US president saying he planned to start sending letters informing trading partners of their rates.Uncertainty leading up to next week’s cut-off tempered the positive lead from another record on Wall Street, where a forecast-busting US jobs report soothed worries about the world’s top economy.Governments around the world have fought to hammer out deals with Washington ahead of the July 9 deadline, set after Trump unveiled a blitz of levies on his “Liberation Day” in early April.He and his top officials have said several were in the pipeline, but only Britain and Vietnam have signed pacts while China has agreed to a framework for it and the United States to slash tit-for-tat tolls and ship certain products.While negotiators continue to seek ways to avert the worst of the White House’s measures, Trump warned Thursday he would soon be issuing his messages to capitals.”My inclination is to send a letter out and say what tariff they’re going to be paying,” he told reporters. “It’s just much easier.”He added: “We’re going to be sending some letters out, starting probably tomorrow, maybe 10 a day to various countries saying what they’re going to pay to do business with the US.”The prospect that trading partners from Japan and South Korea to India and Taiwan could be hit with stiff tariffs fuelled fresh worries about the global economy.Tokyo edged up with Shanghai, Sydney, Wellington and Jakarta but Hong Kong, Seoul, Singapore, Taipei and Manila fell.Traders were unable to pick up the baton from their New York colleagues, who sent the S&P 500 and Nasdaq to more record closes ahead of the Independence Day break.Those gains followed data showing the US economy topped expectations to add 147,000 jobs in June while unemployment dipped to 4.1 percent from 4.2 percent, which was also better than estimated.The reading was taken as a sign the labour market remained in rude health despite warnings about the impact of Trump’s tariffs.It also dented hopes that the Federal Reserve will cut interest rates at its next meeting this month, with bets now on two reductions before the end of the year — the first likely in September.However, analysts suggested that all was not what it seemed, pointing to softness in the private sector.”We think that private-sector hiring has stalled, and we may see sporadic layoffs in some industries in the coming months,” warned analysts at MUFG.”Despite the unemployment rate having fallen… the flow of potential workers that remained out of the labour force rose sharply in June (and over 750k have dropped out of the labor force over the past two months), further highlighting the weak hiring environment. “We continue to view labour demand as being fundamentally weak relative to the past several years.”The passage of Trump’s “Big, Beautiful Bill” also left investors in a quandary as they weighed the extension of huge tax and spending cuts with forecasts that it will add around $3 trillion to the already ballooning national debt.Still, it included a $5 trillion increase in the debt limit, removing the risk the country could default on its bond payments.- Key figures at around 0230 GMT -Tokyo – Nikkei 225: UP 0.1 percent at 39,828.20 (break)Hong Kong – Hang Seng Index: DOWN 1.1 percent at 23,797.99Shanghai – Composite: UP 0.1 percent at 3,463.89Euro/dollar: UP at $1.1770 from $1.1755 on ThursdayPound/dollar: UP at $1.3656 from $1.3642Dollar/yen: DOWN at 144.61 yen from 145.06 yenEuro/pound: UP at 86.19 pence from 86.14 penceWest Texas Intermediate: DOWN 0.2 percent at $66.88 per barrelBrent North Sea Crude: DOWN 0.3 percent at $68.59 per barrelNew York – Dow: UP 0.8 percent at 44,823.53 (close)London – FTSE 100: UP 0.6 percent at 8,823.20 (close)

Wall Street stock indices finished at fresh records Thursday following solid US jobs data as President Donald Trump’s sweeping budget bill successfully reached the congressional finish line.The US economy added 147,000 jobs in June while unemployment dipped to 4.1 percent from 4.2 percent, a sign of US labor market resilience despite the White House’s wave of tariffs.”We have a nice rally going, and the reason for that is that the employment data was stronger than expected,” said Peter Cardillo of Spartan Capital Securities, who noted that the market overlooked that the job additions included a heavy share of public sector posts.Markets also monitored progress on Trump’s massive fiscal package, which extends tax reductions but also includes controversial cuts to social programs and is projected to swell the US deficit.The House of Representatives approved the bill Thursday shortly after the stock market closed, sending Trump a major legislative win. Both the S&P 500 and Nasdaq ended a holiday-shortened session at records.”Market participants (and the economy) will be digesting the implications of the bill for some time, but it is fair to say that neither the stock market nor the Treasury market are living in fear of deficit forecasts,” said a note from Briefing.com.Earlier, London’s stock market and the pound recovered, having taken a knock Wednesday on rumors that British finance minister Rachel Reeves faced losing her job.Oil prices fell, with OPEC and the cartel’s crude-producing allies expected to announce a rise to output Sunday.Investors had been keenly awaiting the US government’s monthly non-farm payrolls report, seen as one of the best data points on the health of companies and the labor market.”The much stronger non-farm payrolls data means a July rate cut is now no longer in consideration, which is music to stock market bulls’ ears”, said City Index and FOREX.com analyst Fawad Razaqzada, because it indicates the economy is in good health.US markets are closed on Friday for US Independence Day celebrations, but negotiators from several nations are racing to reach trade deals with Washington ahead of a July 9 tariff deadline imposed by Trump.Trump has said he will not push back his deadline to make more deals, though he and some of his officials have mentioned that a number were in the pipeline.- Key figures at around 1830 GMT -New York – Dow: UP 0.8 percent at 44,823.53 (close)New York – S&P 500: UP 0.8 percent at 6,279.35 (close)New York – Nasdaq Composite: UP 1.0 percent at 20,601.10 (close)London – FTSE 100: UP 0.6 percent at 8,823.20 (close)Paris – CAC 40: UP 0.2 percent at 7,754.55 (close)Frankfurt – DAX: UP 0.6 percent at 23,934.13 (close)Tokyo – Nikkei 225: UP 0.1 percent at 39,785.90 (close)Hong Kong – Hang Seng Index: DOWN 0.6 percent at 24,069.94 (close)Shanghai – Composite: UP 0.2 percent at 3,461.15 (close)Euro/dollar: DOWN at $1.1755 from $1.1799 on WednesdayPound/dollar: UP at $1.3642 from $1.3636Dollar/yen: UP at 145.06 yen from 143.66 yenEuro/pound: DOWN at 86.14 pence from 86.53 penceWest Texas Intermediate: DOWN 0.7 percent at $67.00 per barrelBrent North Sea Crude: DOWN 0.5 percent at $68.80 per barrelburs-jmb/jgc

Indian Prime Minister Narendra Modi on Thursday outlined plans for deeper ties between his country and Africa, as New Delhi increasingly vies for a stronger economic presence on the continent along with China and Russia.In a speech to Ghana’s parliament, Modi highlighted a major rail project that opened in the west African nation last year, financed by the India Export-Import Bank.He also underlined his country’s expanding diplomatic development and business footprint in Africa.”Over 200 projects across the continent enhance connectivity, infrastructure and Industrial capacity,” Modi said. On the political front he welcomed “the establishment of Ghana-India Parliamentary Friendship Society in your parliament”.Modi’s visit is the first to Ghana by an Indian leader in three decades.But India’s rival China remains the most important backer of infrastructure across the continent, a position only strengthened as the United States and other Western powers slash aid programmes.In a meeting Wednesday, Modi and Ghanaian President John Mahama agreed to deepen security and mining ties.In November 2024, the Indian prime minister visited Nigeria, discussing trade and security at a time when Indian companies had expressed interest in investing in Nigerian industries including steel.The Indian prime minister also on Thursday called for a greater global diplomatic role for both his country and Africa, warning that “the world order created after the Second World War is changing fast”.- Global South’s voice -Modi noted that the African Union had been admitted as a permanent member to the G20 while India held the rotating presidency of the bloc.Progress on worldwide challenges including climate change, diplomacy, “terrorism” and pandemics “cannot come without giving voice to the Global South”, he added.India, the world’s most populous country and a nuclear-armed power, has close ties with Russia but is often in rivalry with China.Resource-rich Ghana is Modi’s first stop in a tour that will take the Indian premier to four other countries in Africa, the Caribbean and South America.The visit to Accra came as he made his way to Brazil for a summit of the BRICS group of emerging economies on Sunday and Monday.Highlighting his own country’s economic development aspirations to become a “developed nation by 2047,” Modi said “India remains a committed partner in Africa’s development journey.”

Stock markets rose and the dollar slid Thursday as strong jobs data showed the resilience of the US economy and reduced the likelihood of interest rate cuts.Investors were also keeping a close eye on President Donald Trump’s bid to push through a tax-cutting budget and reach trade deals.London’s stock market and the pound recovered, having taken a knock Wednesday on rumours that British finance minister Rachel Reeves faced losing her job.Oil prices fell, with OPEC and the cartel’s crude-producing allies expected to announce a rise to output Sunday.Investors had been keenly awaiting the US government’s monthly non-farm payrolls report, seen as one of the best data points on the health of companies and the labour market.Job growth came in at 147,000 last month, beating expectations, and rising from an upwardly revised 144,000 figure in May.”The much stronger non-farm payrolls data means a July rate cut is now no longer in consideration, which is music to stock market bulls’ ears,” said City Index and FOREX.com analyst Fawad Razaqzada.Wall Street’s main indices opened higher, the S&P 500 and Nasdaq Composite pushing up from record closes.”But with the July 9 tariff deadline looming next week, can stocks retain their gains ahead of the long weekend?,” added Razaqzada.US markets are closed on Friday for US Independence Day celebrations, but negotiators from several nations are racing to reach trade deals with Washington ahead of the deadline imposed by Trump.Thursday’s jobs numbers comes one day after a smaller survey showed the US private sector unexpectedly shed jobs last month for the first time since March 2023. That suggested that the US economy was beginning to be hit by the uncertainty caused by Trump’s trade war.Wednesday’s data boosted speculation that the Federal Reserve could cut US interest rates three times this year, with one possibly at the July meeting.But Razaqzada said Thursday’s jobs data ruled out chances of a July cut and a September cut “is now even questionable”.He said investors’ focus was likely to shift to trade talks.The announcement of a US-Vietnam trade deal on Wednesday drew only a muted response.While the pact provided hope that other governments could reach agreements with Washington, dealers were cautious as it emerged that Vietnam must still pay levies of as much as 40 percent for certain exports.The deal means Hanoi will avoid paying the 46-percent levies applied on the April 2 tariff blitz, though the cost of goods going into America will still surge.The stock exchanges in Ho Chi Minh City and Hanoi both dipped Thursday.With less than a week left until Trump’s July 9 deadline to avoid his “reciprocal” levies, in addition to Vietnam only Britain and China have reached preliminary deals.Trump has said he will not push back his deadline to make more deals, though he and some of his officials have said a number were in the pipeline.Elsewhere, US Treasury yields rose amid fresh worries in the bond market over Trump’s “Big, Beautiful Bill” that aims to cut taxes and spending on programmes such as Medicaid.Independent analysis suggests the budget will add $3 trillion to the already-colossal US debt mountain, which observers warn could deal a fresh blow to the world’s top economy.- Key figures at around 1330 GMT -New York – Dow: UP 0.2 percent at 44,580.68 pointsNew York – S&P 500: UP 0.4 percent at 6,252.39  New York – Nasdaq Composite: UP 0.6 percent at 20,519.86 London – FTSE 100: UP 0.4 percent at 8,812.82 Paris – CAC 40: UP 0.2 percent at 7,752.87Frankfurt – DAX: UP 0.3 percent at 23,861.11Tokyo – Nikkei 225: UP 0.1 percent at 39,785.90 (close)Hong Kong – Hang Seng Index: DOWN 0.6 percent at 24,069.94 (close)Shanghai – Composite: UP 0.2 percent at 3,461.15 (close)Euro/dollar: DOWN at $1.1761 from $1.1801 on WednesdayPound/dollar: UP at $1.3653 from $1.3634Dollar/yen: UP at 144.79 yen from 143.65 yenEuro/pound: DOWN at 86.18 pence from 86.52 penceWest Texas Intermediate: DOWN 0.4 percent at $67.15 per barrelBrent North Sea Crude: DOWN 0.5 percent at $68.80 per barrelburs-rl/jj

France announced Thursday a record 40 million-euro fine against e-commerce giant Shein over “deceptive commercial practices” after a competition inquiry, saying it misled customers on price deals and on its environmental impact.  The French competition and anti-fraud office said the investigation found Shein used “deceptive commercial practices towards consumers regarding… price reductions”, with the fine handed down with the blessing of the Paris prosecutor’s office.The DGCCRF competition office said the nearly year-long probe found that the firm raised certain prices before lowering them. It added that the China-founded retailer had accepted the fine.”These practices of greatly discounted prices and permanent promotions give consumers the impression they’re getting a great deal,” said the DGCCRF.If found that 11 percent of advertised discounts it checked “were actually price increases”.In 57 percent of cases Shein’s advertised promotions actually offered “no price reduction” and in 19 percent of cases the price drop “less significant than announced”.Launched in France in 2015, Shein has seen phenomenal growth in recent years and took its share in the domestic clothing and footwear last year to three percent from two in 2021 — a significant slice in what is a notably fragmented market.The company, which has become a figurehead for the downside of “ultrafast fashion,” is decried in some quarters for causing environmental pollution as well as indulging in unfair competition and allowing poor working conditions.In a statement to AFP, Shein said it had put into action “without delay” necessary corrective action inside two months on learning of the DGCCRF probe against in March of last year.It added it took its legal and regulatory obligations in France “very seriously”and was committed to transparency. 

Stock markets and the dollar largely steadied Thursday before key US jobs data and as investors kept a close eye on President Donald Trump’s bid to push through a tax-cutting budget.London’s stock market and the pound recovered, having taken a knock Wednesday on rumours that British finance minister Rachel Reeves faced losing her job.Oil prices fell, with OPEC and the cartel’s crude-producing allies expected to announce Sunday a rise to output.”US stock markets made a fresh record high on Wednesday as we lead up to today’s (non-farm) payrolls report,” noted Kathleen Brooks, research director at XTB trading group.”A weak jobs reading for June… could see the market step up rate-cut expectations for the US, which may weigh on the dollar,” she added.Thursday’s report comes one day after a smaller survey showed the US private sector unexpectedly shed jobs last month for the first time since March 2023, suggesting the labour market was slackening in the world’s biggest economy.Traders widely expect the Federal Reserve to cut US interest rates twice this year but there is growing speculation that it could make three, with one possibly at the July meeting.Bets on rates coming down — possibly this month but more likely in September or October — are supporting equities.There was a muted response, meanwhile, to a US-Vietnam trade deal.While the pact provided hope that other governments could reach agreements with Washington, dealers were cautious as it emerged that Vietnam must still pay levies of as much as 40 percent for certain exports.The news means Hanoi will avoid paying the 46 percent levies applied on the April 2 tariff blitz, though the cost of goods going into America will still surge.The stock exchanges in Ho Chi Minh City and Hanoi both dipped Thursday.With less than a week left until Trump’s July 9 deadline to avoid his “reciprocal” levies, only Britain has signed a deal with the US while China has agreed a framework that slashed sky-high tit-for-tat levies.Trump has said he will not push back his deadline to make more deals, though he and some of his officials have said a number were in the pipeline.Elsewhere, US Treasury yields rose amid fresh worries in the bond market over Trump’s “Big, Beautiful Bill” that aims to cut taxes and spending on programmes such as Medicaid.Independent analysis suggests the budget will add $3 trillion to the already-colossal US debt mountain, which observers warn could deal a fresh blow to the world’s top economy.Still, with some Republicans in the House of Representatives holding out over certain features of the bill, there is talk that lawmakers will not be able to get it to Trump’s desk by Friday’s deadline.On the corporate front, France on Thursday announced a record 40 million-euro fine against Chinese e-commerce giant Shein over “deceptive commercial practices”. – Key figures at around 1040 GMT -London – FTSE 100: UP 0.3 percent at 8,804.06 pointsParis – CAC 40: DOWN 0.1 percent at 7,731.61Frankfurt – DAX: UP 0.1 percent at 23,810.41Tokyo – Nikkei 225: UP 0.1 percent at 39,785.90 (close)Hong Kong – Hang Seng Index: DOWN 0.6 percent at 24,069.94 (close)Shanghai – Composite: UP 0.2 percent at 3,461.15 (close)New York – Dow: FLAT at 44,484.42 (close)Euro/dollar: DOWN at $1.1799 from $1.1801 on WednesdayPound/dollar: UP at $1.3665 from $1.3634Dollar/yen: UP at 143.78 yen from 143.65 yenEuro/pound: DOWN at 86.35 pence from 86.52 penceWest Texas Intermediate: DOWN 0.3 percent at $67.25 per barrelBrent North Sea Crude: DOWN 0.3 percent at $68.89 per barrel

Vietnam’s trade deal with the United States averts the most punishing of Donald Trump’s “reciprocal” levies but has provoked new friction between Washington and Beijing.Vietnam has the third-biggest trade surplus with the United States of any country after China and Mexico, and was targeted with one of the highest rates in the US president’s “Liberation Day” tariff blitz on April 2.The deal announced Wednesday is the first full pact Trump has sealed with an Asian nation, and analysts say it may give a glimpse of the template Washington will use with other countries still scrambling for accords.The 46 percent rate due to take effect next week has been averted, with Vietnam set to face a minimum 20 percent tariff in return for opening its market to US products including cars.But a 40 percent tariff will hit goods passing through the country to circumvent steeper trade barriers — a practice called “transshipping”.Washington has accused Hanoi of relabelling Chinese goods to skirt its tariffs, but raw materials from the world’s number two economy are the lifeblood of Vietnam’s manufacturing industries.”From a global perspective, perhaps the most interesting point is that this deal again seems in large part to be about China,” said Capital Economics.It said the terms on transshipment “will be seen as a provocation in Beijing, particularly if similar conditions are included in any other deals agreed over coming days”.Beijing’s foreign ministry spokeswoman Mao Ning said on Thursday “negotiations and agreements should not target or harm the interests of third parties”.- ‘Wouldn’t celebrate just yet’ -Shares in clothing companies and sport equipment manufacturers — which have a large footprint in Vietnam — rose on news of the deal in New York.But they later declined sharply as details were released.”This is a much better outcome than a flat 46 percent tariff, but I wouldn’t celebrate just yet,” said Hanoi-based Dan Martin, from Asian business advisory firm Dezan Shira & Associates.”Everything now depends on how the US decides to interpret and enforce the idea of transshipment,” he added.”If the US takes a broader view and starts questioning products that use foreign parts, even when value is genuinely added in Vietnam, it could end up affecting a lot of companies that are playing by the rules.”A Vietnam foreign ministry spokesman told reporters on Thursday that negotiators were still “in detailed discussion to concretise agreements”.But there are scant details about the transshipment arrangements in the deal, which Trump announced on his Truth Social platform. “The announced deal gives Vietnam a level of certainty that most other US trading partners do not have,” said American Chamber of Commerce in Hanoi chief Adam Sitkoff.But, he said, “assessing the pros and cons of the deal is difficult without seeing further details about what the tariffs actually mean”. “The answers to these questions can be the difference between celebrating or crying.”- ‘The looming question’ -Bloomberg Economics forecast Vietnam could lose a quarter of its exports to the United States in the medium term, endangering more than two percent of its gross domestic product as a result of the agreement.”The Vietnamese government will now find itself under pressure to ensure that country-of-origin rules are enforced,” explained Jack Sheehan, head of regional tax at Asian legal and tax firm DFDL.But uncertainty over how transshipping will be “defined or enforced” is likely to have diplomatic repercussions, said Bloomberg Economics expert Rana Sajedi.”The looming question now is how China will respond,” she said. “Beijing has made clear that it would respond to deals that came at the expense of Chinese interests.””The decision to agree to a higher tariff on goods deemed to be ‘transshipped’ through Vietnam may fall in that category,” added Sajedi. “Any retaliatory steps could have an outsized impact on Vietnam’s economy.”  

Japan will from January attempt to extract rare earth minerals from the ocean floor in the deepest trial of its kind, the director of a government innovation programme said Thursday.Earlier this week the country pledged to work with the United States, India and Australia to ensure a stable supply of critical minerals, as concern grows over China’s dominance in resources vital to new technologies.Rare earths — 17 metals difficult to extract from the Earth’s crust — are used in everything from electric vehicles to hard drives, wind turbines and missiles.China accounts for almost two-thirds of rare earth mining production and 92 percent of global refined output, according to the International Energy Agency.A Japanese deep-sea scientific drilling boat called the Chikyu will from January conduct a “test cruise” to retrieve ocean floor sediments that contain rare earth elements, said Shoichi Ishii, director of Japan’s Cross-ministerial Strategic Innovation Promotion Programme.”The test to retrieve the sediments from 5,500 metres (3.4 miles) water depth is the first in the world,” he told AFP.”Our goal… of this cruise is to test the function of all mining equipment,” so the amount of sediment extracted “doesn’t matter at all”, Ishii added.The Chikyu will drill in Japanese economic waters around the remote island of Minami Torishima in the Pacific — the easternmost point of Japan, also used as a military base.Japan’s Nikkei business daily reported that the mission aims to extract 35 tonnes of mud from the sea floor over around three weeks.Each tonne is expected to contain around two kilograms (4.4 pounds) of rare earth minerals, which are often used to make magnets that are essential in modern electronics.Deep-sea mining has become a geopolitical flashpoint, with anxiety growing over a push by US President Donald Trump to fast-track the practice in international waters.Beijing has since April required licences to export rare earths from China, a move seen as retaliation for US curbs on the import of Chinese goods.Environmental campaigners warn that deep-sea mining threatens marine ecosystems and will disrupt the sea floor.The International Seabed Authority, which has jurisdiction over the ocean floor outside national waters, is meeting later this month to discuss a global code to regulate mining in the ocean depths.