Indonesia and the United States initiate tariff negotiations, South Korea-US trade boosts South Korean stocks, South Korea's credit card delinquency rate hits a ten-year high

Taiwan • Business • 04/28 11:07
Indonesia and the United States initiate tariff negotiations, South Korea-US trade boosts South Korean stocks, South Korea's credit card delinquency rate hits a ten-year high

In April 2025, Indonesia and the United States initiated bilateral tariff negotiations, focusing on energy, agricultural products, and key minerals. Korea-U.S. trade talks boosted the South Korean stock market by 0.10%, but South Korea's credit card delinquency rate hit a ten-year high. Facing the new U.S. tariff policy, many Asian countries are accelerating negotiations, aiming to reach an agreement within 90 days.

Key Updates

04/28 23:01

Chinese battery manufacturers have been severely impacted by high tariffs, while South Korean companies are speeding up their entry into the U.S. and European markets.

Global demand for energy storage is increasing, and Chinese battery manufacturers like CATL are facing up to 173.4% tariff pressures in the US market, hindering their market layout. South Korean companies like LG Energy Solution and SK On are expanding with policy support, filling the market void. Although Chinese companies have a cost advantage, they need to pivot towards Europe and emerging markets. US and European policies are reshaping the supply chain, prompting companies to accelerate the localization of production and technological upgrades.

04/28 21:31

Economist from Apollo: Trump's High Tariff Policy Predicted to Cause U.S. Economic Recession by Summer 2025

In the spring of 2025, the U.S. economy faced a supply chain crisis due to the Trump administration in the United States increasing tariffs on Chinese imports to 145%. Container volumes at ports plummeted, retailers such as Walmart warned of product shortages, the demand for trucking services collapsed, and manufacturers such as Mack Trucks laid off workers. Torsten Slok, chief economist at Apollo Global Management, predicted that these factors would lead to a U.S. economic recession in the summer of 2025, showing signs of stagflation.

04/28 19:03

Singapore and the United States are negotiating concessions on the export of pharmaceuticals and AI chips, facing challenges due to Trump's tariffs. The economic growth forecast has been downgraded to between 0% and 2%, with the general election approaching.

Singapore is negotiating with the United States to obtain concessions for pharmaceutical exports and access to the AI chip market, in response to the challenge of Trump's 10% tariff policy. Singapore's economic growth forecast has been revised down to between 0% and 2%, with a rising risk of unemployment. With the parliamentary election approaching on May 3, the cost of living becomes a major concern for voters.

04/28 14:01

China refuses to accept Boeing passenger planes, Riyadh Air expresses willingness to purchase, Trump criticizes Beijing's trade policies

Chinese airlines have refused to accept Boeing planes due to US-China trade tensions, leading Boeing to return some planes to the US and seek resale. Tony Douglas, the CEO of Riyadh Air in Saudi Arabia, stated that if China cancels its order, the company is willing to purchase all the planes that were rejected. This move has drawn criticism from former US President Trump, who directed his criticism towards Beijing, urging Boeing to hold China accountable for breaching the contract and accusing China of not fulfilling its purchase commitments.

04/28 13:30

On April 29, PayPal will release its financial report, and investors are focusing on the impact of tariffs imposed by Trump on consumer spending.

PayPal will announce its first-quarter 2025 financial report on April 29. The market is focused on its performance under the Trump administration's new tariff policies, especially in international business and consumer transactions. Analysts have mixed views on its prospects, with some downgrading ratings due to the impact of tariffs. The Trump tariff policy's effect on consumer spending has raised market concerns, particularly for low-income groups. The surge in Buy Now, Pay Later (BNPL) usage may temporarily boost PayPal's transaction volume, but it also raises credit risk. Investor sentiment is volatile, with clear signs of market funds flowing out of the United States. PayPal's market value is approximately $63.3 billion, and the CEO is driving innovation and cost control strategies.

04/28 11:07

Indonesia and the United States initiate tariff negotiations, South Korea-US trade boosts South Korean stocks, South Korea's credit card delinquency rate hits a ten-year high

In April 2025, Indonesia and the United States initiated bilateral tariff negotiations, focusing on energy, agricultural products, and key minerals. Korea-U.S. trade talks boosted the South Korean stock market by 0.10%, but South Korea's credit card delinquency rate hit a ten-year high. Facing the new U.S. tariff policy, many Asian countries are accelerating negotiations, aiming to reach an agreement within 90 days.

04/28 01:00

Yiwu International Trade City Remains Vibrant Amidst the US-China Trade War: Merchants from the Middle East, South America, and India Fuel Competition in the Toy Wholesale Market

Despite the escalation of the US-China trade war, Yiwu International Trade City in Zhejiang will face pressure from high US tariffs in April 2025, hindering exports to the US market. However, merchants from the Middle East, South America, India, and other regions continue to pour in, particularly in the toy wholesale market, where prices are 30% to 50% below typical market rates. Yiwu merchants have successfully mitigated risks through market diversification and supply chain integration, maintaining their status as the world's hub for small commodities.

04/27 19:02

Trump's Tariff Policies: Reshaping US-China Trade and Posing Challenges to the American Supply Chain and Social Structure

The Trump administration's high tariff policy has intensified the pressure on U.S. social welfare spending, impacting the retail supply chain and the import of auto parts, while progress in manufacturing reshoring remains slow. Walmart has notified Chinese suppliers to resume shipments, with the tariffs being borne by U.S. buyers. China is advancing the integration of domestic and international trade to help exporters pivot to the domestic market. This trade war is transforming the industrial and social landscapes of both the U.S. and China.

04/27 17:00

The United States Launches Tariff Talks with 18 Nations: Reciprocal Tariffs Will Be Imposed if No Deal is Made

The U.S. government is advancing tariff negotiations with 18 trade partners, using a new framework from the U.S. Trade Representative, focusing on tariffs, non-tariff barriers, and digital trade issues, with plans to finalize by July 8, 2025. If no agreement is reached, reciprocal tariffs will be imposed. Mexico, Canada, and China are excluded from this framework and will be addressed separately.

04/27 15:02

US-China Tariff War: Pepsi is impacted by a 10% tariff on Irish concentrate imports, reducing its competitiveness compared to Coca-Cola.

Due to its reliance on Ireland for concentrate production, PepsiCo is facing the impact of a 10% import tariff due to the US-China trade war, which weakens its competitiveness in the US market. In contrast, Coca-Cola, which produces its concentrate domestically, is less affected. Both companies are also facing the challenge of a 25% tariff on imported aluminum in the US, which drives up packaging costs. Pepsi's market position in the US has weakened, and it has lowered its full-year profit expectations, while Coca-Cola demonstrates greater resilience.

Indonesia and the US Initiate Reciprocal Tariff Negotiations

Indonesia's Foreign Minister Sugiono and Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto, visited the United States from April 16, 2025, to hold talks with the US State Department, the Office of the United States Trade Representative (USTR), the Department of the Treasury, and the Department of Commerce. Both parties confirmed their commitment to strengthening the comprehensive strategic partnership and officially launched substantive negotiations on reciprocal tariff issues.

During the talks, Indonesia proposed increasing imports of energy, natural gas, soybeans, wheat, and other agricultural products from the US to address the bilateral trade deficit and strengthen cooperation in the critical minerals supply chain. Additionally, Indonesia requested the US to lower tariffs on its top 20 export products to the US, such as garments, footwear, textiles, furniture, and shrimp, to maintain Indonesia's export competitiveness. US Trade Representative Jamieson Greer expressed gratitude for Indonesia's commitment to improving its domestic import restriction regulations.

On April 23, both parties signed a working document to officially start negotiations on technical issues and agreed to begin discussions on market access and the US National Trade Estimate (NTE) report-related issues within the next two weeks. The negotiation results will be presented in the form of a framework agreement for President Trump's decision-making reference.

Korea-US Trade Talks Boost Korean Stock Market

As one of the first countries to engage in trade talks with the Trump administration, South Korea and the US agreed to aim for a tariff reduction agreement by early July, with the goal of completing the agreement before the restoration of reciprocal tariffs. South Korean Finance Minister Choi Sang-mok stated that last week's talks with the US helped alleviate uncertainty and opened the door for further negotiations.

Encouraged by this news, the Korean Composite Stock Price Index (KOSPI) closed up 0.10% on April 28, rising 2.56 points to 2,548.86 points. The market's focus is on the "July Plan" agreed upon by both sides, covering four major areas: tariffs and non-tariff measures, economic security, investment cooperation, and monetary policy. The South Korean government has requested exemptions from reciprocal and industry-specific tariffs and plans to strengthen cooperation in shipbuilding, the Alaska pipeline project, and other energy and investment sectors.

US Treasury Secretary Scott Bessent stated that the first tariff meeting with South Korea was "very successful," with progress exceeding expectations. South Korean Minister of Trade, Industry and Energy Ahn Deok-geun emphasized that Seoul will proceed with the negotiations with a "calm and prudent" attitude.

South Korean Credit Card Companies' Delinquency Rates Hit Ten-Year High

Despite the short-term market boost resulting from trade talks, domestic economic pressures in South Korea are increasingly evident. In the first quarter of 2025, major South Korean credit card companies—Shinhan, KB, Woori, and Hana—reported delinquency rates reaching a ten-year high.

Hana Card reported a delinquency rate of 2.15%, up 0.21 percentage points from the previous quarter and 0.28 percentage points from the same period last year, marking its highest level since its establishment in December 2014. KB Kookmin Card and Shinhan Card both saw their delinquency rates rise to 1.61%, also the highest since the end of 2014 and the third quarter of 2015.

Experts point out that the deteriorating financial situation of small business owners and self-employed individuals is the main reason for the rising delinquency rates, reflecting the ongoing economic downturn in South Korea.

Asian Countries Accelerate Trade Talks with the US

In response to a new round of reciprocal tariff policies from the US, many Asian countries are accelerating trade negotiations with the US. According to reports, the Trump administration has initiated negotiation procedures with 18 key trading partners, with Asian countries making the fastest progress, including Indonesia, South Korea, Japan, and India.

Asian countries are eager to reach preliminary agreements within the 90-day grace period to avoid the restoration of at least 25% high tariffs by early July. Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto, emphasized that while the US demands market opening, investment regulation relaxation, and cooperation in the critical minerals supply chain, Indonesia will also ensure that domestic interests are not compromised. Thailand's Prime Minister Prayut Chan-o-cha also stated that Thailand will participate in the negotiations on a reciprocal basis to ensure a balance of interests for both parties.

World Bank Chief Economist Indermit Gill suggested that emerging market countries should quickly reach trade agreements with the US to reduce tariff pressures and boost economic growth.

References

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