AWANITonight with @Hafiz_Marzukhi
1. Trump's rant against Fed Chair Powell. What's next?
2. U.S. sets tariffs up to 3.521% on Southeast Asia solar imports
1. Trump's rant against Fed Chair Powell. What's next?
2. U.S. sets tariffs up to 3.521% on Southeast Asia solar imports
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NewsTranscript
00:00Hello and good evening. You're watching Awani tonight with me, Hafiz Marzouki.
00:11US stocks suffered steep losses as US President Donald Trump ramped up his attacks on Federal
00:17Reserve Chair Jerome Powell. This prompts investors to worry about the central bank's
00:22independence, even as they grapple with the effects of Trump's ongoing erratic trade war.
00:30All three major indexes tumbled, with big losses in the magnificent seven group of mega-cap
00:35growth stocks weighing heaviest on the tech-laden Nasdaq. Trump escalated his criticism of Powell
00:42on Monday, saying the US economy is headed for a slowdown unless Mr. Too Late, a major
00:48loser lowers interest rates now, in a true social post which raised concerns over the Fed's
00:53autonomy. The Sino-US trade rift deepened after Beijing warned other countries against striking
00:59deals with the United States at China's expense, adding fuel to the spiralling tariff war between
01:05the world's two largest economies.
01:09Now, with US markets buckling under the weight of political interference and economic uncertainty,
01:16the stakes couldn't be higher. What began as volatility triggered by trade tensions has now morphed into
01:22something more systemic, a credibility crisis for the Federal Reserve, and a confidence test for
01:28investors around the globe. Now, as Trump's attacks on Fed Chair Jerome Powell intensify, calling him names like
01:34Mr. Too Late and a major loser, questions are mounting about the independence of the world's most influential
01:41central bank. Add to that, Beijing's hardening stance on trade diplomacy, and it's clear, we are not just watching
01:47market jitters, we're watching the rules of economic engagement being rewritten. Now, joining us now for
01:54insight and perspective is Dr. Stuart Nixon. He's the Deputy Director of Research at Ideas. Now,
02:00Dr, let's start with the markets. We've seen a sharp sell-off across US indices, with the S&P 500 down over 12%
02:08since the start of the year. What, in your view, is fueling this volatility? Is it more about Trump's trade and
02:14tariff rhetoric, or the pressure campaign on the Fed?
02:16Yeah, while tariffs are commanding the most attention, market jitters reflect wider uncertainty
02:24from the Trump administration's disruptive and unorthodox approach to economic policymaking in
02:30general. Trump's campaign against Chairman Powell contributes to this uncertainty, providing a
02:36destabilising force of potentially major consequence. Not only share market losses and volatility, but US
02:43dollar depreciation and US Treasury bond yields, and the rises in those reflect the damage that this
02:50uncertainty is doing to investor confidence. Yeah, so Trump has now publicly called names towards Jerome
02:57Powell, major loser, Mr. Too Late, for not cutting rates fast enough. How significant is this clash for
03:03investors? And is it undermining confidence in the US Central Bank?
03:07Yeah, hostilities between President Trump and Chairman Powell are jeopardising long-standing
03:15institutional separation. Trump is not shy in his desire to interfere with the Fed,
03:21and the Fed itself, in return, is being accused of playing politics. So in the days between Trump
03:28announcing and pausing his tariffs, US Treasury markets actually came dangerously close to becoming
03:33dysfunctional. Some commentators interpreted the lack of Fed intervention as an episode of power
03:39playing politics, or even a game of chicken, if you will, with the Trump administration. While financial
03:46disaster was averted, thankfully, investors are questioning their US asset exposure amid a rethink of
03:53the US as a safe haven economy under this unpredictable administration that Trump is leading. And also a
04:00compromise Fed Reserve, the two go together. That shares and bonds are retreating together is an unusual and
04:06significant development in the global economy that highlights how uncertain investors are both about
04:11Trump policies and about the Fed's role as a financial safety net. Yeah, well, what you raise is there are
04:18clearly growing concerns about the independence of the Fed. Why is Central Bank independence so crucial?
04:24And what could be the long-term consequences if this perception is eroded?
04:30Yeah, well, Fed independence, by which we mean the Fed is operating separately and not subject to
04:36government orders, is a critical institutional pillar supporting confidence in the US economy
04:42and the functioning of financial markets globally. The Fed exercises monetary policy, it buys and sells
04:49government securities. It's responsible financial system regulation in the US. That it operates without
04:56political interference is important to safeguarding the interests of economic stability and the US and
05:03global peoples. Independent central banks have consistently been found to be better at exercising monetary
05:11policy to support stable long-term economic growth with inflation contained. Confidence in the US
05:19institutions like an independent Fed also underpin the attractiveness of the US dollar and finance,
05:25making it a safe haven for large but low risk investments. On your question of perceptions or the
05:32actual erosion of Fed independence, if that were to occur, would that require, that would actually require
05:38a substantial rethink of how the US economy, its institutions and governance are understood. Investor
05:44confidence in the US could plummet and a global reorganisation and liquidation of capital is not
05:49actually inconceivable. A shock of this magnitude would be, would do both significant short and long-term
05:56damage to the economy, to trust in institutions and the relationship between markets and politics in
06:02the US but also potentially globally. And it bears reminding that major shocks are particularly harmful to poorer
06:09countries, to smaller businesses and to the most vulnerable households. Yeah so we would love to speak
06:16more about you know what's to expect next but unfortunately we'll have to keep on continuing our
06:24monitor of the whole situation. Thank you so much that was Dr. Stuart Nixon, he is the Deputy Director of Research
06:30Head Ideas. We will now go for a short break. Stay with us.
06:51A special parliamentary seating will be held on May 5th to discuss Washington's reciprocal tariffs imposed on
06:58Malaysia. Prime Minister Datuk Seri Anwar Ibrahim confirmed this at the Hari Raya Aidilfitri celebration
07:04in the Prime Minister's department earlier today.
07:09The special session would allow MPs to debate the impact of the US tariffs. It would take place after
07:15Investment Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz and Second Finance Minister Datuk Seri
07:22Amir Hamza Aziz returned from a two-day visit to Washington. During the visit the two ministers are
07:28expected to meet US Trade Representative Jameson Greer for tariff talks. Tengku Zafrul has said the visit
07:34would not focus on negotiations but rather discussions surrounding Malaysia's role within the US-Asia supply
07:41chain particularly in the semiconductor as well as electrical and electronic sectors. Following a 90-day
07:48pause, Malaysia now faces a 24% retaliatory tariff under the Trump administration.
07:56Visa-free travel between Malaysia and China will be extended for another five years. Home Minister Datuk Seri
08:03Saifuddin Nasrutuan Ismail says Chinese nationals will continue to be allowed to stay in Malaysia for up to
08:0890 days without a visa with the same apply for Malaysians in China.
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08:36Currently, Malaysians are allowed to travel to China without a visa until December 31st this year.
08:58An agreement to extend the mutual visa exemption period was reached through a memorandum of understanding
09:04during Chinese President Xi Jinping's state visit to Malaysia last week.
09:16The U.S. Commerce Department plans to impose tariffs of up to an astronomical figure of 3,521%
09:26on solar panel imports from Southeast Asian countries.
09:30The proposed levies, also known as anti-dumping and countervailing duties,
09:35will target solar cells coming from companies in Malaysia, Thailand, Vietnam and Cambodia.
09:42The tariffs would vary depending on the company and the countries their products are made in.
09:47Certain exporters in Cambodia face the highest duties of 3,521%
09:53due to what officials see as a lack of cooperation with the Commerce Department.
09:58Meanwhile, products made in Malaysia by Chinese manufacturer Jinko Solar
10:02face some of the lowest duties at just over 41%.
10:06The levies would be imposed on top of existing tariffs already rolled out by the Trump administration.
10:12A final decision would be made by the U.S. International Trade Commission in June
10:16following a year-long investigation.
10:19The probe was initiated when several major solar equipment producers
10:23urged then-president Joe Biden's administration to protect their U.S. operations
10:28in response to allegations of subsidies from China
10:32and unfairly cheap products in the American market.
10:35Many Chinese firms have shifted operations to Southeast Asia in recent years
10:40in a bid to avoid tariffs imposed since the start of U.S. President Donald Trump's first term.
10:45Vietnam's Trade Ministry issues a directive
10:50to crack down on illegal transshipment of goods to the United States
10:54and other trading partners.
10:57The directive, which takes effect on April 15th,
11:00aims to help the country avoid steep U.S. tariffs
11:03according to a document reviewed by Reuters.
11:05The ministry warned that trade fraud is likely to increase
11:12amid rising tensions caused by the tariffs.
11:14This in turn could make it more complicated to avoid sanctions
11:18that countries may impose on imported goods if such fraud is not prevented.
11:24The directive did not specifically name any countries
11:26where transshipment fraud might originate.
11:29However, Washington has also openly accused Beijing
11:32of using the Southeast Asian nation as a transshipment hub to dodge U.S. duties,
11:37with nearly 40% of Vietnam goods imports coming from China.
11:42Vietnam faces 46% of the reciprocal tariffs from the Trump administration,
11:47currently paused until July.
11:49If applied, this could threaten Vietnam's export-driven growth
11:53and foreign investment.
11:55Vietnam's Prime Minister Pam Min-Chin instructed officials
11:58to combat trade fraud, counterfeiting,
12:01and other issues of concern for the U.S.
12:03as the country prepares to start talks with Washington on tariffs.
12:10In its first major trade policy shift
12:13since Washington introduced the so-called reciprocal tariffs,
12:17India has imposed a 12% temporary tariff on some steel imports.
12:22In an official order, the Finance Ministry says
12:24the duty will be effective for 200 days,
12:27from Monday, unless revoked, superseded, or amended earlier.
12:34Known locally as a safeguard duty,
12:36the measure is intended to protect domestic steel producers
12:39from the impact of a surge in cheaper imports.
12:42India's Steel Minister, H.G. Kumar Raswami,
12:45said it was also to ensure fair competition in the market.
12:49Dalhi's tariffs are primarily targeted at China,
12:52which was the second biggest exporter of steel to India
12:56in the last financial year behind South Korea.
12:59A flood of Chinese steel in recent years
13:01has pushed some Indian mills to scale down operations
13:04and even consider job layoffs.
13:07Now that report wraps up Awani tonight.
13:12Check out our web portal,
13:14keeping you informed on the critical events
13:16shaping our world,
13:18all in one place at international.astroawani.com
13:22That's all for now.
13:24I'm Hafiz Marzouki.
13:25Thanks for watching and good night.
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