Philippines and Latvia Forge Stronger Maritime Ties
The International Monetary Fund (IMF) has warned that ongoing U.S. tariff policies could significantly reduce global trade volume and economic growth. According to the IMF's latest World Economic Outlook, the forecast for trade growth in 2025 has been cut from 3.2 percent to 1.7 percent, while the economic growth forecast has been lowered from 3.3 percent in 2024 to 2.8 percent in 2025. Although this indicates a global slowdown, it does not predict a recession.
The United States, central to the tariff negotiations, is expected to be the most affected among OECD countries, with its growth forecast for 2025 reduced from 1.8 percent to 0.9 percent. This projection assumes that the Trump administration will continue with its current tariff plans, including the reciprocal tariffs affecting most foreign trade partners. However, the final outcome remains uncertain as the White House has frequently altered its stance on the tariff package.
Following a sharp selloff in U.S. markets on Monday, Treasury Secretary Scott Bessent informed JP Morgan investors that the escalating trade war with China is "unsustainable." Trump's top tariff rate of 145 percent on Chinese goods is the highest imposed on any U.S. trading partner, prompting China to retaliate with a 125 percent tariff.
Bessent predicted that these tensions would ease soon, despite the lack of formal talks with Beijing. His comments led to a market rebound, with the Dow recovering Monday's losses by Tuesday's close. Meanwhile, White House press secretary Karoline Leavitt announced that the administration is reviewing 18 trade proposals and will hold meetings with 34 countries this week. She confirmed that there have been no formal discussions between President Trump and Chinese President Xi Jinping regarding tariffs.
President Trump expressed optimism about reaching a deal with China, stating, "We're going to be very nice [with China]. They're going to be very nice. And we'll see what happens." He emphasized the necessity for China to make a deal to continue trading with the United States, despite his longstanding grievances about Chinese industrial policies.
Trump's approach to individual, nation-by-nation negotiations faces an additional challenge as China has warned against any agreements that compromise its interests. The Chinese commerce ministry stated, "China firmly opposes any party reaching a deal at the expense of China’s interests. Sacrificing the interests of others for temporary gains will ultimately fail and harm all parties involved."