28/06/2025

BIZ & FINANCE SATURDAY | JUNE 28, 2025

13

Thailand to hold trade talks with US next week BANGKOK: Thailand’s finance minister will travel to the US next week for trade talks, local media reported yesterday, as the kingdom seeks to secure a deal with Washington over US President Donald Trump’s threatened tariffs. Thai exports face a 36% levy on key exports to America under the US president’s raft of “Liberation Day” measures if no agreement is reached to head them off before next month’s deadline. Finance Minister Pichai Chunhavajira told reporters he has scheduled talks with a US representative and plans to depart next week, according to local media outlet Thai News Agency MCOT. His remarks followed online speculation that the tariffs would be cut to 18% after the talks, which he dismissed in a post on X. “It’s just a projection made by economists,“ he told reporters at Government House, as quoted by local media. In May, Pichai said the proposal aimed to reduce the trade imbalance and expand US export access to Thailand’s market. America’s goods trade deficit with Thailand hit US$45.6 billion (RM193 billion) in 2024, up 11.7% from the year before, according to US Trade Representative data. The Thai government last month cut its 2025 economic growth forecast to 2.3-3.3%, from 3.2-4.2%, citing uncertainty over “reciprocal tariffs”. AFP has reached out to Pichai’s party representative who was unable to confirm details of the trip. Many Southeast Asian nations were threatened with the highest “reciprocal” tariff rates: 49% on Cambodia’s exports, 46% on Vietnam’s and 44% on Myanmar’s.

While India leads in economic growth, concerns persist over income disparities, slow job

creation, and external trade pressures. – UNSPLASH PIX

Poll: India set for top growth, but weaknesses linger

of 6.3% and 6.5%, respectively. “Most of the growth that was happening was mainly because of the capital expenditures of the government, which will flatten out,” said Indranil Pan, chief economist at Yes Bank. Private sector spending is still trailing far behind, and analysts generally agree the economy is still failing to create enough quality jobs for its large young population. “One of the biggest challenges for India at the current juncture is per capita income. Job creation has not been strong enough to generate the income needed to support sustainable economic growth,” Pan added. Some economists said there may be downgrades to the GDP outlook in the coming months if New Delhi fails to secure a trade agreement with

Washington before the 90-day pause on tariffs comes to an end on July 9. Trade talks between the two sides have stalled over auto parts, steel and farm goods, Indian officials with direct knowledge told Reuters yesterday, dashing hopes of a deal ahead of US President Donald Trump’s deadline to impose reciprocal tariffs. But ANZ economist Dhiraj Nim wrote they have upgraded their FY26 growth forecast on hopes that the two countries would reach a trade deal. “Even so, growth will remain below potential in a challenging global environment, warranting policy support,” he added. The RBI shifted its policy stance to “neutral” from “accommodative” on June 6, signalling a likely end to its shallowest rate-cutting cycle in over a decade. – Reuters

o Govt spending continues to drive momentum amid stalled trade talks and global headwinds

BENGALURU: The Indian economy will grow at a mostly steady pace this fiscal year and next after marking a four-year low in 2024-25, according to economists polled by Reuters, who have mostly either kept their forecasts unchanged or made marginal upgrades. That stable outlook comes despite the Reserve Bank of India (RBI) cutting interest rates by a full percentage point since early this year, including an unexpected 50 basis point reduction on June 6, to boost growth in the face of rising global uncertainties.

But the world’s fastest-growing major economy still earns that title mostly because government capital expenditure remains strong. Gross domestic product (GDP) was forecast to expand 6.4% in the current fiscal year ending March 2026, the June 17-26 Reuters poll of 51 economists found. That is weaker than 6.5% reported for fiscal year 2024-25, which was the slowest since 2020-21. Growth was forecast to pick up modestly to 6.7% in FY26-27. That marks a slight upgrade from last month’s poll, which had medians

China confirms trade deal reached with US

Bumper orders for Xiaomi’s new SUV heighten threat to Tesla

BEIJING: China confirmed yesterday details of a trade deal with the US, saying Washington would lift “restrictive measures” while Beijing will “review and approve” items under export controls. “It is hoped that the US and China will meet each other halfway,“ a spokesman for the commerce ministry said in a statement. The White House on Thursday said both sides had reached an understanding on issues including expediting rare earth shipments to the US. After talks in Geneva in May, Washington and Beijing agreed to temporarily lower steep tit-for-tat tariffs on each other’s products. China also committed to easing some non-tariff countermeasures, but US officials later accused Beijing of violating the pact and slow walking export licence approvals for rare earths. Both sides eventually agreed on a framework to move forward with their Geneva consensus following talks in London this month. A White House official told AFP on Thursday that President Donald

SHANGHAI: Exceptionally strong initial orders for Xiaomi’s YU7 electric sport utility vehicle (SUV) sent shares in the automotive newcomer to a record high yesterday and fanned speculation that Tesla may have to cut prices to fight back. The company received 289,000 orders for the YU7 - only its second vehicle and one that undercuts Tesla’s Model Y in price by nearly 4% – in its first hour on sale, according to CEO Lei Jun. That was more than three times the level for its SU7 electric sedan launched in March last year and easily exceeded market expectations of around 100,000 in orders. Tesla’s Model Y, China’s best-selling SUV, will likely lose more market share, analysts said. That would only rub salt into the wound for the US automaker which has steadily lost ground to domestic EV makers that have won over consumers with snazzy new models. Xiaomi’s SU7, for example, has outsold Tesla’s Model 3 in China on a monthly basis since

December. The YU7 is priced from 253,500 yuan (RM149,537) which is “slightly below that of Tesla’s Model Y but it offers much better specs and performance,“ said analysts at Jefferies. Citi analysts said Tesla may have to cut prices further, offer its “Full Self Driving” driver assistance software for free and offer more financing incentives if it is to successfully compete with Xiaomi. Tesla did not immediately respond to a request for comment. Its share of the Chinese EV market has fallen from a peak of 15% in 2020 to 10% last year and then again to 7.6% for the first months of 2025. Xiaomi’s shares shot 8% higher in early trade to an all-time high but later pared gains to be up 3%. They have risen by more than 70% so far this year to value the smartphone and appliance maker at nearly $200 billion, making the company the best performing large cap stock in Asia Pacific, according to LSEG data. – Reuters

Beijing and Washington reaffirm trade commitments, with China set to review export approvals and the US to lift select measures. – AFPPIX

maintained close communication,“ the commerce ministry spokesman said. “Recently, with approval, both sides further confirmed the details of the framework,“ they said, adding that China “will review and approve applications for the export control items that meet the requirements in accordance with the law”. “The US side will correspondingly cancel a series of restrictive measures against China.”

Trump’s administration and China had “agreed to an additional understanding for a framework to implement the Geneva agreement”. This clarification came after Trump told an event that Washington had “just signed” a deal relating to trade with China, without providing further details. Beijing confirmed yesterday that an agreement had been reached. “Following the London talks, the teams from both sides have