Australian market feels trade war tremors
Australia’s ASX 200 index began the trading day in negative territory, reflecting the global market reaction to escalating trade tensions. As an export-dependent economy, Australia faces potential impacts from the US-China standoff, particularly in sectors like mining and agriculture.
China responds: strategic counters to US tariffs
In a significant escalation, China has instructed its domestic airlines to suspend deliveries of Boeing aircraft, extending to purchases of aviation equipment from American suppliers. This move follows Beijing’s decision to raise retaliatory tariffs on US imports to 125%, responding to the Trump administration’s 145% duties on Chinese goods. The aviation sector faces substantial challenges as a result, with Boeing’s market value already declining by 7% since January.
Xi’s diplomatic tour: building regional alliances
Chinese President Xi Jinping’s strategic tour of Southeast Asia aims to strengthen regional alliances amid the trade dispute. His visits to Vietnam and Malaysia focus on enhancing supply chains and positioning China as a stable trading partner. This diplomatic effort underscores China’s commitment to diversifying trade relationships and countering US policy volatility.
Tourism industry faces “Trump Slump” as international visits decline
The US tourism industry is experiencing a significant downturn, with international visits declining by 11.6% in March compared to last year. The “Trump Slump” reflects the broader economic and political turbulence impacting consumer confidence and travel demand. Airlines like Delta Air Lines have adjusted their operations in response to disappointing bookings and unpredictable trade policies.
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