Financial markets received the customs duties agreement concluded by US President Donald Trump with Indonesia without a stir on Wednesday, indicating that the rate of about 20%, previously considered punishment, now applies. The performance of the shares and other assets in Asia was contrary to Trump, 19% on customs fees on Indonesian goods. The shares in the country in Southeast Asia increased from the optimism that the new fees were at least less than 32% that the president was initially threatened. Vietnam’s shares have also climbed since Trump said in early July that he had reached a trade agreement with the country. Fees negotiation tools The current calm is a shift compared to what happened earlier this year when the collapse was on the market, including secure ports such as Treasury bonds, very sharp in April after Trump imposed international customs duties on “Tahrir Day”, which led to him suspended within days. Now the markets are looking at these drawings as just negotiating pressure tools that the president uses to withdraw commercial concessions. Several indicators of financial markets fluctuations, such as the ‘Ice Mof’ index, issued by the ‘Ice Bofa Move’, for US Treasury bonds, recorded the lowest levels in years. While countries such as India and Vietnam have tried to reduce the reduction of US customs duties to a much less than 20%, Trump said he is considering drafting comprehensive fees of between 15% and 20% on most commercial partners. This indicates that 20% is no longer considered punishment, but rather has become a standard in negotiations. Transiary with Asia with some certainty, Humin Lee, the macro economic strategy of Lombard Older in Singapore: “The apparent agreement between Indonesia and Tyrm, together with the agreement between the United Kingdom and the United States, and the agreement between Vietnam and the United States, shows that American dewteeries will remain in a series of 10% to 20%.” He added that there is some relief in Asia, but investors are still adopting the guard and anticipation approach, as the fees imposed on the European Union, Mexico and Canada – combined with half of US imports – are still being prepared. The agreement between the United States and Indonesia will be concluded with a country targeted by customs duties that Trump sent last week. These messages were considered an attempt to increase the pressure on negotiators before the date of August, the date scheduled to begin the entry into force of the high fees. Rajev de Milo, the director of the governor at Gama Asset Management SA, said that trade agreements could perform Asia markets: Trump suggests that the fees impose on medicine and exclude many new transactions, but that “the levels of US fees at 20% are a worrying development because it can lead to real fees.” Some analysts believe that the latest agreement is useful for a broader Asian origin group. Standard Chartered Wealth Manegement Group in Singapore, in an interview with Bloomberg TV, said the US agreement with Indonesia “will help reduce the uncertainty in the field of trade.” And she continued: “The conclusion of more trade agreements between the United States and its partners in Asia should help reduce the state of marginal uncertainty, and Asia markets, with the exception of Japan, excel at achievements.” Market sensitivity to fees news has dropped, others indicate the sensitivity of the market in general for customs duties. Strategists at Bank of America, including Rich Samadia in Hong Kong, wrote in a note published on Tuesday: “Investors’ concern quickly draws back to President Trump’s escalation positions in the trade war, even though he has expanded the extent of conflict.” They wrote: “The latest bank managers’ polls of the bank reflect this increasing optimism, as 70% of participants see a slight negative impact on the economy and markets of Asia, in a reading that is the most optimistic since December.” US Treasury bonds remained in 4.48%for ten years, near their highest level in five weeks.
Trump fees are accepted by the markets after a sharp rejection at the beginning
