Europe split; Asia braces
European institutions are split over how quickly to implement tariff cuts under the new U.S. trade deal — the Council favors fast action while Parliament wants concessions tied to conditions. (table.media) The EU Chamber says European firms are repeatedly becoming “collateral damage,” Singapore’s market has shown relative resilience and analysts expect the Monetary Authority of Singapore to tighten policy, and Xi Jinping said China would “continue to play a constructive role” in efforts to end the Middle East war. (scmp.com) (sg.news.yahoo.com) (nytimes.com)
European Union governments and lawmakers are now haggling over how fast to cut tariffs under the bloc’s new trade deal with the United States. (table.media) Talks between the European Parliament, the Council and the European Commission opened on April 14, with the Council pushing for a rapid reduction in tariffs on United States goods and Parliament seeking stricter conditions before cuts take effect. Parliament already voted on March 26 to back implementing legislation, but the deal still needs a final compromise in the three-way negotiations. (table.media) (eesc.europa.eu) That fight inside Brussels is unfolding as European companies in China warn they are being squeezed by decisions made in Washington and Beijing. Jens Eskelund, president of the European Union Chamber of Commerce in China, said European firms keep becoming “collateral damage” and urged Brussels not to become a “passive recipient” of United States-China trade negotiations. (scmp.com) The pressure is spreading into Asia’s financial centers. Reuters reported on April 9 that 11 of 13 analysts expected the Monetary Authority of Singapore to tighten policy at its April 14 review as the Middle East war drove up energy prices and inflation risks, even as Singapore’s market held up better than some regional peers. (wincountry.com) (sg.news.yahoo.com) China is also trying to position itself as a diplomatic actor while trade tensions rise. On April 14, Xi Jinping said China would “continue to play a constructive role” in promoting peace talks in the Middle East, his first public comments since the United States-Israeli attacks on Iran began in late February. (bloomberg.com) (alarabiya.net) The trade deal itself was supposed to calm one front of the dispute between Washington and Brussels. Bloomberg reported on March 26 that the pact would remove tariffs on United States industrial goods while setting a 15 percent tariff ceiling for most European Union products. (bloomberg.com) Instead, the next argument is about leverage. Euronews and Politico both reported in March and February that lawmakers wanted limits on how long tariff concessions would last and tougher terms on sectors including steel, setting up the clash now playing out with member states. (euronews.com) (politico.eu) What happens next is procedural but immediate: the trilogue has to produce a final text that both Parliament and member states can live with. Until that happens, Europe’s promise of faster tariff relief remains tied up in the same crosswinds hitting its companies in China, Singapore’s policy outlook and China’s diplomacy in the Middle East. (table.media) (scmp.com) (wincountry.com) (alarabiya.net)
