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China has signaled willingness to  extend its trade truce with the United States , offering markets a degree of stability while setting clear limits on future tariff escalation. Negotiations to Extend Trade Agreement Beijing confirmed that trade teams from China and the US will  negotiate an extension of the one-year agreement reached in late 2025. The deal, initially agreed in Kuala Lumpur and formalised at a summit in Busan, included: Suspension of certain tariffs Easing of  rare earth export restrictions Pause on  investigations into China’s shipbuilding sector The current arrangement is set to run until  November 2026 . China Sets Boundaries on Tariff Levels China indicated it is willing to  tolerate US tariffs , but only within limits: Acceptable tariff level:  ~30% ceiling Current effective rate:  ~21%  (after US court rulings) This stance signals  pragmatism from Beijing , while pushing back against attempts by the US to  rei...

Foreign automakers have cautioned that  affordable vehicle models could disappear from the US market  if the  US-Mexico-Canada Agreement (USMCA)  is not renewed or revised favorably. Trade Policy Uncertainty Clouds Auto Sector Outlook Industry players have raised concerns to the administration of  Donald Trump  that without a stable trade framework: Producing  low-cost vehicles may become uneconomical Supply chains across  North America could be disrupted The USMCA, which currently allows  tariff-free automotive trade , is under review, with negotiations facing delays amid rising tensions. Tariffs Threaten Cost Structure The situation has been exacerbated by  25% tariffs on auto imports  from Mexico and Canada imposed last year. These tariffs have: Increased  production costs Pressured margins for automakers Made  entry-level vehicles less viable  in the US market Without relief, manufacturers may  scale back or ...

Europe’s economy is beginning to show clear signs of strain as the Iran conflict drives  higher energy prices, weaker growth, and rising inflation , threatening to derail the region’s fragile recovery. Growth Outlook Deteriorates Across Europe Governments across Europe are  cutting economic growth forecasts , as the war disrupts energy markets and business sentiment weakens. Major economies like  Germany and Italy  are reassessing projections, while policymakers brace for a  prolonged period of slower expansion .  The shock comes just as the region was recovering from previous crises, raising concerns of a  renewed economic slowdown . Inflation Pressures Resurface The surge in oil and gas prices is expected to  reignite inflation , forcing policymakers into difficult trade-offs. Central banks, including the European Central Bank, may need to: Shift toward  tighter monetary policy Delay or reverse  rate-cut expectations Officials warn the...

Market  Snapshot The  United  States  has  opened  a  Section 301  investigation  into  Malaysia ,  focusing  on  alleged  excess  production  capacity  in  electronics,  machinery  and  steel  industries . The  probe,  launched  by  the  Office  of  the  United  States  Trade  Representative ( USTR)   on  March 11 ,  is  part  of  a  broader  effort  by  the  Trump  administration  to  address  trade  imbalances  and  potentially  reinstate  tariffs  on  foreign  imports . Malaysia  is  among  16  economies  under  investigation ,  including  China,  Japan,  India,  Singapore,  Vietnam,  Taiwan  and  the  European  Union ,...

Quick Summary EU warns new US tariffs exceed the 15% ceiling agreed in last summer’s trade deal Trump introduced a new  10% global levy , with threats to raise it to  15% Some EU exports like  cheese, butter, plastics and textiles  could face higher-than-agreed rates Brussels pauses approval process, seeks clarity What’s the Dispute? The European Union says President  Donald Trump ’s new global tariff policy may  violate the EU-US trade agreement  struck last summer. After the  Supreme Court of the United States  blocked Trump’s earlier “reciprocal tariffs,” the White House introduced a  new 10% blanket tariff , later threatening to raise it to  15% . According to the  European Commission , the new global levy would be  added on top of existing duties  — potentially pushing tariffs on certain goods  above the 15% cap  agreed in the bilateral trade deal. Which Products Are Affected? Products that could exceed...

The UK, which had touted its preferential trade position with Washington, may now face the  largest relative setback after President  Donald Trump  moved to reset global tariffs following a ruling by the  Supreme Court of the United States . From Advantage to Disadvantage Before the ruling: The UK enjoyed a  10% reciprocal tariff rate Lower than many other trading partners Provided a competitive edge for British exporters Now: Trump plans to impose a  flat 15% tariff globally That erases Britain’s relative advantage Makes UK exports less competitive According to Global Trade Alert, the UK could be the  biggest loser , followed by Italy and Singapore. Meanwhile, Brazil, China and India may benefit as their effective tariff rates decline under the new structure. Potential Economic Impact The  British Chambers of Commerce  estimates: Up to  £3 billion (US$4 billion)  in additional export costs Around  40,000 UK businesses  af...

Quick Summary French wine and spirits exports  fell for a second straight year , hit by  weak global demand ,  trade wars , and  policy headwinds from the US and China . What Happened Exports  dropped 8% to €14.3 billion  in 2025 Down from  €15.6 billion in 2024 Export volumes fell ~3% , signalling both price and demand pressure According to France’s wine and spirits exporters federation (FEVS), the downturn reflects  geopolitical tensions, trade conflicts, currency swings, and declining consumer confidence . Where the Pain Is Coming From Exports to China:   -20% , after Beijing imposed  anti-dumping measures on EU brandy Exports to the US:   -21% , following  tariffs imposed under the Trump administration Key issue:  Two of France’s biggest buyers are simultaneously pulling back. Structural Challenges Add Pressure France’s wine industry is also grappling with: Weak global alcohol consumption trends Extreme weather affecti...

Quick Summary US cuts tariffs on Indian goods to 18% from as high as 50% India agrees to stop buying Russian oil , easing US–India tensions India pledges major US purchases , including energy and technology Markets rally : Indian equities and rupee surge on relief trade What Happened US President  Donald Trump  said he will  lower tariffs on Indian goods to 18%  after a call with Prime Minister  Narendra Modi , linking the move to India’s agreement to  halt purchases of Russian oil . Washington is also  removing an extra 25% duty  imposed earlier over India’s Russian crude imports, according to officials. Why It Matters Overall levies fall from ~50% to 18% , a major relief for Indian exporters Textiles, machinery and labor-intensive goods  benefit the most India sends  nearly 20% of its exports to the US , its largest market The deal eases pressure on  India’s manufacturing ambitions Trump said India would also  reduce tariffs ...

Quick Market Summary Global risk sentiment weakened sharply as fears of a renewed  US–Europe trade war linked to Greenland  triggered heavy selling across equities, spilling over into Asian and Malaysian markets. Wall Street: Trade War Fears Spark Broad Sell-Off US equities slumped after President  Donald Trump  threatened fresh tariffs on European countries opposing his Greenland bid. Dow Jones:   -1.8%  to 48,488.59 S&P 500:   -2.1%  to 6,796.86 Nasdaq Composite:   -2.4%  to 22,954.32 Big Tech names were among the hardest hit, reflecting concerns over retaliatory tariffs and global supply-chain risks. Key takeaway:   Markets are repricing geopolitical risk as trade tensions resurface. Bursa Malaysia: Broad-Based Selling The  FTSE Bursa Malaysia KLCI Index  ended the session firmly lower as cautious sentiment dominated regional trading. KLCI:   1,699.06 (-0.77%) Market breadth:  786 decliners vs 296 gainers ...