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Israeli Tanks Advance Further Into Gaza City Amid Trump Peace Talks
Israeli forces advanced toward central Gaza City on Wednesday, endangering Palestinians who remained, hoping mounting international pressure for a ceasefire would protect their homes.
U.S. President Donald Trump met leaders of Muslim countries at the United Nations in New York on Tuesday for talks, which the Emirati state news agency WAM said focused on an end to the war.
Trump, who earlier condemned moves by a string of countries to put pressure on Israel by recognising a Palestinian state, said a meeting with Israel would be next.
The Israeli government has urged the population of Gaza City to move south, but many people hesitated, citing the lack of security and widespread hunger there. “We moved to the western area near the beach, but many families didn’t have the time, tanks took them by surprise,” said Thaer, a 35-year-old father of one from Tel Al-Hawa.
Airstrikes Hit Shelter
Israeli forces, which began closing in on the city of more than a million in August, have ignored calls to stop an offensive that the government says aims to destroy the last stronghold of Hamas militants, whose 2023 attack on Israel and seizure of hostages triggered the war.
Medics said at least 20 people were killed and many others wounded when Israeli airstrikes hit a shelter housing displaced families near a market in the middle of the city. Two other people were killed in a house nearby, they said.
The Israeli military said it was looking into the reported attack on the shelter, where footage obtained by Reuters showed people sifting through the rubble.
“We were sleeping in God’s care, there was nothing – they did not inform us, or not even give us a sign – it was a surprise,” said Sami Hajjaj. “There are children and women, around 200 people maybe, six-seven families, this square is full of families,” he said.
In the city’s Tel Al-Hawa suburb, tanks entered populated areas, trapping people in their homes, while more tanks were seen stationed close to Al-Quds Hospital. The Palestinian Red Crescent Society said an oxygen station had been damaged.
Tanks Advance
Tanks have also advanced closer to Gaza’s largest hospital, Al Shifa, witnesses and Hamas media said.
On Monday, Palestinian authorities said tank shelling had damaged the Rantissi Hospital and put the nearby Al-Naser eye hospital at risk, forcing them to close. Jordan, which runs a third hospital in the area, said it had moved it further south due to repeated bombardment.
The Israeli military said it would continue to enable the provision of medical services and functioning of healthcare facilities in Gaza and that staff and patients from Al-Naser and Rantissi had voluntarily evacuated.
Hundreds of thousands of people have fled Gaza City in northern Gaza, further south over the past few weeks, but many more remain, saying there is nowhere safe for them to go.
Seven people were killed in Nuseirat and near Rafah in Gaza’s south, medics said. There was no immediate comment from the Israeli military, which insists its attacks are aimed at ending Hamas rule of the enclave.
International Frustration Grows
Israel has drawn widespread condemnation over its military conduct in Gaza, where more than 65,000 Palestinians, most of them civilians, have been killed, according to local health authorities, and famine has spread.
International frustration over the war in Gaza prompted some Israeli and U.S. allies to recognise a Palestinian state this week. Support for the war in Israel has also wavered, with 48 hostages, 20 of whom are believed to be alive, still held by Hamas in Gaza, and 465 soldiers killed in combat.
Hamas has acknowledged the death of some of its military leaders but has not disclosed the number of its fighters killed. The war began when Hamas stormed into Israel on October 7, 2023, killing some 1,200 people, mostly civilians, and taking 251 hostages, according to Israeli tallies.
(With inputs from Reuters)
France Orders Removal Of Palestinian Flags From Town Halls
Following French President Emmanuel Macron’s recognition of Palestinian statehood earlier this week, dozens of town halls across France raised Palestinian flags in celebration, defying instructions from Macron’s interior ministry.
By Wednesday, some had taken the flag down after regional authorities initiated legal proceedings—an episode that some mayors said undermined the message of solidarity Macron sought to convey with his largely symbolic recognition.
“For me, it’s a complete misunderstanding,” Raphael Adam, mayor of Nanterre outside Paris, told Reuters. “You can’t have a government asking its representatives to oppose raising a flag at the same time it’s recognising the state.”
The city raised the flag in a ceremony on Monday, but a day later, the Nanterre administrative court ruled it should be removed after the city defied an order by the regional representative, known as the prefect, to take it down.
French Public Display Rules
Under French law, public buildings are prohibited from being used as platforms for expressing political, religious, or philosophical opinions. Local officials noted, however, that Ukrainian flags have been displayed and even projected on the Eiffel Tower.
“When we raised a Ukrainian flag, no one told us anything!” said Gilles Poux, mayor of La Courneuve, northeast of Paris, who planned to take down the flag late on Tuesday after his administration was fined for flying one earlier this year.
“Speaking of neutrality is hypocritical. Liberty, equality, fraternity: there’s nothing neutral about these values,” he said.
Asked about the allegations of double standards, the interior ministry told Reuters the Gaza war had provoked protests and tensions in France, and that displaying Palestinian flags on public buildings could trigger public unrest.
As of Tuesday night, 86 town halls across France had flown the Palestinian flag, according to the interior ministry, which last week told regional government representatives to block such moves for contravening France’s “neutrality principle”.
Anne Tuaillon, head of the France Palestine Solidarity Association, said there was no room for neutrality “in a situation of oppression”, referring to Israel’s military onslaught on Gaza since the 2023 Hamas attack on Israel.
Lionel Crusoe, a lawyer specialised in French public law, said the interior ministry ruling made little sense.
“This neutrality principle for public services does not prevent a municipality from being able to occasionally show solidarity towards a people who are the target of a military aggression, or a terrorist attack, for example,” he said.
(With inputs from Reuters)
America’s Loss Is India’s Gain
American entrepreneur and academic Vivek Wadhwa, delivers a blistering critique of President Donald Trump’s decision to impose a $100,000 fee on H-1B visa applicants, arguing it is driven by ego and political theatre rather than sound policy.,
The move is “part two of the vendetta” sparked when Trump failed to receive the deference he expected from Indian leaders, and is intended to placate a shrinking MAGA base by appearing tough on foreign workers.
Wadhwa acknowledges legitimate abuses within the H-1B system — unscrupulous consulting “body shops” that inflate resumes, underpay skilled workers, and game the lottery — but insists that penalising highly qualified scientists and engineers is counterproductive. Around two-thirds of H-1B holders are Indian, he notes, because India produces a large, highly educated scientific workforce. Shutting them out, he warns, will damage American competitiveness and wound US research, startups and labs that rely on that expertise.
He points to a perverse dynamic in which visa backlogs keep skilled immigrants economically captive: unable to change jobs without losing queue position, many accept below-market wages, which reduces labour mobility and weakens bargaining power. Tech companies have been reluctant to press for green cards, he says, because captive workers help preserve cheap talent. The result is a Silicon Valley complacency that ultimately undermines innovation.
Wadhwa predicts a strategic reversal: as talented Indians return home, often with savings, networks and global experience, India’s startup and R&D ecosystem will flourish. Work-from-home norms and globalised talent mean multinationals can retain employees remotely — or lose them to Indian ventures. “America’s loss is India’s gain,” he says bluntly.
Beyond geopolitics, Wadhwa frames his own pivot to India as testament to the country’s capabilities. Having built health-diagnostic technology with Indian institutions, he argues India offers world-class research and an enormous opportunity to retain and scale talent.
The H-1B fee, he concludes, is short-sighted politics that hands a strategic advantage to India while inflicting self-harm on the United States. He urges Washington to clean up fraud in the visa system, expand lawful pathways, and incentivize talent — not erect punitive barriers that backfire strategically.
Germany Says Europe Must Act Following Trump’s Ukraine Policy Shift
Germany’s Foreign Minister Johann Wadephul said on Wednesday that Europe must “grow up” and increase support for Ukraine following U.S. President Donald Trump’s comments backing Kyiv to reclaim all Russian-occupied territory.
Speaking to Germany’s Deutschlandfunk radio, Wadephul said Trump had realised that his own efforts had failed to persuade Russia’s Vladimir Putin to end the war in Ukraine.
Trump’s remarks on Truth Social marked an abrupt and major rhetorical shift for the U.S. leader, who had previously nudged Ukraine to give up territory to end the war and had rolled out the red carpet for Putin in Alaska just last month.
But it was not immediately clear whether Trump would back up his words with a shift in U.S. policy, an ambiguity that could keep the onus on Europe to meet more of Ukraine’s needs through weapons and financing as Washington’s role recedes.
Stepping Up Will Not Be Easy For Europe
Europeans have repeatedly said “that we really have to grow up… We have to become more sovereign,” Wadephul said.
“And that’s why we have to look at what we ourselves can achieve. We can achieve much more; not all European states have delivered what they promised Ukraine. We have to look at what other financial and military options we have.”
Trump’s comments were good for Ukraine and good for Europe, Wadephul said, as the president “must indeed acknowledge that his considerable efforts with Putin have so far been unsuccessful.” He warned, however, that Europe stepping up security efforts would not be easy.
Two officials, speaking to Reuters on condition of anonymity, also cautioned that Trump may be signalling that it was up to Europe to help Ukraine now.
“He seems to be saying his goodbyes, no? But that can change tomorrow. In any case, the cards are clear for us. We know what we should be doing,” a Western European official said.
A senior Eastern European diplomat said that Trump’s Ukraine comments aimed to indicate a change of position and to show “that he is starting to disengage by sending a message that it is Europe’s question”.
Europe Already Taking On A Greater Role
Trump, in his social media post, said: “With time, patience, and the financial support of Europe and, in particular, NATO, the original Borders from where this War started, are very much an option.”
The U.S. has long been Ukraine’s biggest single backer and weapons supplier but since taking office Trump has insisted Europe take on a much greater share of its own defence burden. To some extent, that is already happened.
European members of the NATO defence alliance have raised their defence spending and also supplied Ukraine with air defence under a new system to give Ukraine weapons from U.S. stocks using funds from NATO countries.
The European Union is also discussing a plan to repurpose the frozen assets to boost financial aid to Ukraine, as it looks to step up sanctions pressure on Russia, despite the risk of damaging foreign confidence in investing in Western bonds.
European defence stocks were the biggest early gainers on the pan European STOXX 600 on Wednesday following Trump’s remarks.
An index of aerospace and defence companies. SXPARO was up 0.8% at 0717 GMT, near its record highs and outperforming region-wide STOXX 60, which was down 0.45%.
(With inputs from Reuters)
US Plans To Finalise Southeast Asia Trade Deals Soon, Official Says
The United States expects to finalise trade deals with more countries in Southeast Asia in the coming months, U.S. Trade Representative Jamieson Greer said on Wednesday during a meeting with regional counterparts.
Greer was speaking in Kuala Lumpur at the start of a meeting with economic ministers from the 10-member Association of Southeast Asian Nations, amid concerns within the export-reliant bloc over the impact of U.S. tariffs on their economies.
Tariff rates have been set at 19% and 20% for most of the region. Laos and Myanmar have been hit with a 40% rate, while Singapore has a 10% tariff.
Greer said talks with respective countries on the levies have been progressing well, resulting in some deals being announced while others will be finalised “in the coming months or even weeks, for some.”
ASEAN Warns Of Slower Trade In 2025
The United States has said it had reached agreements with Indonesia and Vietnam on tariffs, though the countries say they are still finalising terms.
Vietnam, the world’s sixth-largest exporter to the United States, risks losing $25 billion annually as a result of the 20% tariff imposed on its goods, which would make it the worst-hit economy in the region, according to estimates released by the United Nations Development Programme.
In a joint statement dated Tuesday, ASEAN economic ministers noted “adverse impact and uncertainty” arising from the tariff landscape and warned of slower regional trade performance in the second half of 2025, due to the front-loading of exports ahead of the tariffs’ imposition in the earlier part of the year.
The ministers also expressed concern over rising protectionism and unilateral trade measures, which they say “pose significant risks to the multilateral trading system and the stability of global supply chains”.
US Seeks ‘Balanced And Reciprocal’ Trade
In his remarks, Greer said the United States welcomed trade with ASEAN, but it must be “balanced and reciprocal”.
“We believe that there are many areas where our interests align, and we can work together to achieve shared goals of bringing reciprocity and balance to the global trading system,” he said.
Wednesday marked Greer’s first meeting with the ASEAN bloc, whose members have largely engaged in separate negotiations with the United States on the issue of tariffs.
But the grouping may be driven to take a more unified position amid risks of steeper sectoral tariffs on industries such as semiconductors, a significant contributor to economies like Thailand, Malaysia, and Vietnam.
U.S. President Donald Trump said last month he would set a tariff of about 100% on semiconductors, but it would not apply to companies that are manufacturing in the United States or have committed to do so.
(With inputs from Reuters)
At UN, South Korean President Pledges To Ease Tensions With North Korea
South Korea‘s President Lee Jae Myung vowed on Tuesday to break the “vicious cycle of unnecessary military tensions” with North Korea, aiming for peaceful coexistence and shared growth.
In his first speech to the United Nations General Assembly, Lee emphasised his vision of a “phased solution” to the North Korean nuclear issue, “based on a cool-headed perception that denuclearisation cannot be achieved in the short term.”
On Sunday, the leader of nuclear-armed North Korea, Kim Jong Un, rejected any phased plan, saying recent overtures from Washington and Seoul for dialogue were disingenuous because their fundamental intent to weaken Pyongyang remained unchanged.
Kim said there was no reason to avoid talks with the U.S. if Washington stopped insisting he give up his nuclear weapons, but he would never abandon the nuclear arsenal to end U.S.-led sanctions.
Lee said Seoul would “consistently seek a path to reduce military tensions and restore inter-Korean trust” and pointed to recent actions like halting propaganda leaflets and loudspeaker broadcasts to North Korea.
“By gradually expanding inter-Korean exchanges in cooperation, we will pave the way for sustainable peace,” he said.
On Sunday, the North Korean leader said he would never engage in dialogue with Seoul. However, Kim said he had “fond memories” of U.S. President Donald Trump, with whom he held several summits in the U.S. leader’s first term, an engagement that collapsed over U.S. denuclearisation demands.
Trump said last month he wanted to meet Kim this year, but in a wide-ranging 55-minute speech to the U.N. on Tuesday, the U.S. leader made no mention of North Korea.
Seoul Dismantles Border Loudspeakers
South Korea is taking tangible steps to ease longstanding tensions with North Korea, following the dismantling of border loudspeakers in August.
The loudspeakers, which had long broadcast propaganda messages and warnings across the heavily militarised Demilitarised Zone (DMZ), were removed as a gesture of goodwill and a signal of Seoul’s willingness to pursue dialogue with its northern neighbour.
The move comes amid growing concerns over escalating military tensions on the Korean Peninsula.
Seoul dismantled the loudspeakers with an aim to reduce provocations and create a more conducive environment for diplomacy.
Officials in Seoul have emphasised that the measure was part of a broader strategy to de-escalate conflict and foster stability in the region, while maintaining readiness for any potential security threats.
(With inputs from Reuters)
Trump Shifts Tone, Says Ukraine Can Regain Entire Territory
U.S. President Donald Trump said on Tuesday he believes Ukraine can reclaim all Russian-occupied territory and should act immediately, citing Moscow’s “big” economic troubles, marking a striking rhetorical shift in Kyiv’s favour.
But there was no sign that Trump’s words would be matched by a change in U.S. policy, such as a decision to impose the heavy new sanctions on Moscow sought by Ukrainian President Volodymyr Zelenskyy as he travelled to New York this week.
“Putin and Russia are in BIG Economic trouble, and this is the time for Ukraine to act,” Trump wrote on Truth Social, shortly after meeting Zelenskyy on the sidelines of the U.N. General Assembly in New York.
“After seeing the Economic trouble (the war) is causing Russia, I think Ukraine, with the support of the European Union, is in a position to fight and WIN all of Ukraine back in its original form,” he said.
That would ostensibly require Kyiv to expel Russian forces from 20% of its territory, including the Crimean peninsula, which Moscow has held since 2014, in what would be an extraordinary reversal.
Trump had previously suggested Kyiv should consider giving up territory in order to make peace, fuelling Ukrainian fears of behind-the-scenes talks for a deal that would seek to recognise its occupied lands as legally Russian.
Europe’s foreign policy chief, Kaja Kallas, praised Trump’s statements, saying: “These have been very strong statements that we haven’t heard before in such formats, so it is really good that we are in the same understanding now.”
Good, Constructive Meeting
The U.S. president’s tone was in stark contrast to his red-carpet treatment for Russian President Vladimir Putin at a summit in Alaska last month, part of an ostensible push to expedite an end to Russia’s war in Ukraine.
Zelenskyy told reporters at a briefing that he had a “good, constructive” meeting with Trump, declining to go into detail, while praising Trump’s statement on Truth Social as a “big shift.”
Zelenskyy later told Fox News that he thought the positions of the Ukrainian and U.S. teams were “closer than any time before,” and that he thought Trump’s position had changed.
The U.S. statement criticised Russia, saying it had been fighting “aimlessly” in a war that a “real military power” would have won in less than a week. That, Trump added, made Russia look very much like a “paper tiger”.
Nonetheless, the only firm commitment from Trump on Truth Social was to “continue to supply weapons to NATO for NATO to do what they want with them,” an apparent reference to a new mechanism allowing European countries to buy U.S. weapons for Ukraine.
U.S. Secretary of State Marco Rubio’s remarks to the U.N. Security Council suggested the United States had not given up hope of a peaceful resolution.
“This war needs to end. But if it does not, if there is no path to peace in the short term, then the United States and President Donald J. Trump will take the steps necessary to impose costs for continued aggression.”
Zelenskyy has been urging the United States to ramp up sanctions pressure on Russia to coerce it into entering negotiations to end the war launched in February 2022, a call he repeated at the United Nations.
Addressing the General Assembly earlier, Trump said he was ready to impose strong economic measures if Russia did not end its war, but that allies would have to do the same. He also derided some European powers for continuing to buy Russian oil.
Zelenskyy said he and Trump discussed Russia’s stuttering economy and “there was an understanding” that Trump would be ready to provide security guarantees to Ukraine when the war ended.
He said that Trump had the power to prove a “game-changer” for Ukraine in the war. Zelenskiy noted China retained influence over Russia, though he added he had seen no sign from Beijing that it wanted the war over.
Speaking to reporters, Russia’s Deputy U.N. Ambassador Dmitry Polyanskiy played down the significance of Trump’s statement on Truth Social.
“Don’t get so excited about every tweet,” said Polyanskiy.
Former Democratic U.S. Representative Tom Malinowski said the Trump statement was “an amazing 180-degree turn, which might not last long”.
Malinowski, also a former assistant U.S. secretary of state, added on X: “But Putin will have only one question back. What more is Trump actually going to do to help Ukraine win? If nothing, then it’s just words.”
(With inputs from Reuters)
Typhoon Ragasa Heads Toward China After Deadly Sweep Through Taiwan, Hong Kong
Typhoon Ragasa, the world’s strongest cyclone of the year, surged toward southern China on Wednesday, after killing 14 in Taiwan, leaving dozens missing, and battering Hong Kong with fierce winds and heavy rain.
Some 129 people are missing in Taiwan’s eastern Hualien county, after a barrier lake overflowed and sent a wall of water into a town, the Taiwan fire department said on Wednesday, with Ragasa’s outer rim having drenched the island since Monday.
Many residents in the tourist town of Guangfu complained there was insufficient warning from Taiwan authorities, who are used to moving people out of potential danger zones swiftly on the island, which is frequently hit by typhoons.
As rains inundated Taiwan, Hong Kong grappled with huge waves that crashed over areas of the Asian financial hub’s eastern and southern shoreline, breaking into white-water streams as they rushed along pavements and submerged some roads alongside residential properties.
At the Fullerton hotel on the island’s south, videos on social media showed a torrent of seawater surging through its glass doors before flooding the floor area. Calls to the property remained unanswered on Wednesday.
China Issues ‘Red’ Alert
China’s marine authority issued its highest “red” wave warning for the first time this year, forecasting storm surges of up to 2.8 metres (9 feet) in parts of Guangdong province, as Ragasa charges towards the densely populated Pearl River Delta.
Ragasa formed over the Western Pacific last week. Fuelled by warm seas and favourable atmospheric conditions, the tropical cyclone rapidly intensified to become a Category 5 super typhoon on Monday with winds exceeding 260 kph (162 mph).
It has since weakened to a Category 3 typhoon, which is still capable of bringing down trees and power lines, shattering windows and damaging buildings.
“Authorities have taken lessons from Hato and Mangkhut, which both caused billions of dollars in damage in 2017 and 2018,” said Chim Lee, a senior energy and climate change specialist at the Economist Intelligence Unit.
“The Pearl River Delta is one of the best-prepared regions for typhoons, so we’re not expecting major disruptions. One change this year is that the Hong Kong stock market has stayed open during typhoons – a sign of how resilient the infrastructure has become,” he added.
That said, Zijin Gold International delayed its $3.2 billion IPO in Hong Kong on Wednesday.
After passing around 100 km (60 miles) south of Hong Kong over the next few hours, Ragasa is expected to make landfall along the south Chinese coast in the late afternoon.
Guangzhou, Shenzhen, Foshan and Dongguan, the largest cities in the storm’s path, are home to around 50 million people.
Relief Dispatched
The emergency management ministry dispatched tens of thousands of tents, folding beds, emergency lighting equipment and other rescue supplies to Guangdong on Tuesday, Chinese state media reported, while over 770,000 people have been evacuated.
Some shops and restaurants in the province parked large rented trucks in front of their storefronts in a bid to shield them from the storm, local media reported.
“We live on an upper floor and saw there wasn’t too much danger, so I brought the kids out to experience this heavy rain and wind,” a 40-year-old Shenzhen resident surnamed Liang said. “We walked along the open road to make sure to stay safe.”
A crowd chasing the storm under the Shenzhen Bay Bridge were moved on by traffic police, a Reuters witness observed.
“The typhoon was really intense, but I’ve not been out long,” said an electric scooter delivery driver who goes by the name of Tim and was using his vehicle to move around and assess the damage.
“It’s a lot of fun, but it’s also dangerous. I wanted to ride around the waterfront, but it’s too dangerous, so I had to come back onto the bridge.”
China’s marine authority warned of a high risk of flooding in Shenzhen, especially in low-lying areas, with a storm surge alert expected to remain in effect until Thursday.
Casualties In Hong Kong
A woman and her five-year-old son were swept into the ocean on Tuesday after watching the typhoon from the Hong Kong waterfront, according to the South China Morning Post, which said they were now in intensive care.
Hong Kong lowered its typhoon signal to 8 from 10 just after 1 pm (0500 GMT) on Wednesday, keeping the city locked down.
The hospital authority said at least 50 people had been injured by the typhoon, while the government had opened 50 temporary shelters, within which 791 sought refuge.
In the gambling hub of Macau, next to Hong Kong, casinos were forced to shutter their gambling areas. Guests are not able to leave their property if they are staying there. One user on China’s Xiaohongshu app showed videos of doors being sealed at a casino resort for protection against gales and debris.
(With inputs from Reuters)
Torrential Rains Flood Kolkata, Leaving At Least 12 Dead
At least 12 people died as torrential rain battered Kolkata and nearby areas ahead of a major festival, submerging streets, crippling transport, and stranding residents for hours, officials said on Wednesday.
Most of the rain, as much as 251.6 mm (9.9 inches) in 24 hours, fell during the early hours of Tuesday and was the heaviest witnessed in the city since 1988, said HR Biswas, the regional head of the India Meteorological Department (IMD) in Kolkata.
Police said nine people died in Kolkata, with most of the deaths due to electrocution. Two people drowned, they added.
The rains brought the state capital to a standstill, seriously hampering preparations for the upcoming Durga Puja – the biggest annual festival of Hindus in West Bengal.
Many pandals, temporary structures built with bamboo and other materials for the festival, and clay idols of the deities also suffered damage across the city.
Roads were submerged under waist-deep water in some areas, stranding vehicles and forcing commuters to wade through flooded streets.
Road, train, and air traffic were severely disrupted, with several flights and trains cancelled or delayed. Power outages affected multiple areas for hours, compounding residents’ difficulties.
“I got stranded in my hotel as my flight got cancelled and the roads were all waterlogged,” said Ranjan Panda, a water and climate expert.
Authorities said they have deployed water pumps to clear streets and railway tracks, with relief measures, including food distribution and emergency services, underway.
More Rain Predicted
The IMD predicted more rain in the state and eastern India over the next few days due to the formation of a low-pressure area over the Bay of Bengal.
The state government declared schools and other educational institutions closed on Wednesday and Thursday before the holidays, for the festival to take effect from Friday.
Officials said conditions will normalise by Wednesday evening while urging residents to remain cautious as water levels gradually recede in low-lying areas.
“This should not have happened after four hours of rain. West Bengal is not in a good condition,” Sandip Ghosh, a local resident in Kolkata, told Indian news agency ANI, in which Reuters has a minority stake.
(With inputs from Reuters)
Vietnam’s Prime Minister Pursues New Trade Agreements To Offset US Tariffs
Prime Minister Pham Minh Chinh said on Tuesday that Vietnam plans to negotiate fresh trade agreements during the year, aiming to reduce the impact of U.S. tariffs on its exports to the American market, the country’s largest trading partner.
The statement came days after estimates by the United Nations Development Programme showed U.S. duties risked slashing by up to one-fifth of Vietnam’s exports to the United States, making it the hardest-hit country in Southeast Asia.
Exports “will face difficulties and challenges … due to strategic competition, conflicts and the U.S.’s ‘reciprocal’ tariff policies,” Prime Minister Chinh said in a statement posted on the government’s website on Wednesday.
He expected exports to grow more than 12% this year. Vietnam’s exports in the year to September 15 rose 15.8% from a year earlier to $325.3 billion, according to government data.
Free Trade Agreements
To offset the impact of the U.S. duties, Vietnam aims to sign free trade agreements with Latin America’s Mercosur trading bloc and Gulf Cooperation Council countries by the end of the year, Chinh said.
He also reiterated that Vietnam would continue trade negotiations with the United States, after the Trump administration imposed a 20% tariff on most Vietnamese goods shipped to the country.
Vietnam is also working to address U.S. concerns by cracking down on products that violate international copyright or have questionable origins.
Chinh also told officials to continue cracking down on imported goods that may violate international copyright and that may have issues with their origin, according to the statement.
Both issues have been repeatedly raised by U.S. officials as major concerns in their relations with Vietnam.
The White House has also imposed a 40% tariff on goods deemed to be transshipped through Vietnam. That could have a huge impact if Washington decides to set strict limits on foreign components used in exported items, given Vietnam’s goods rely heavily on Chinese components.
(With inputs from Reuters)