August 7, 2025 • 15 mins
Federal Reserve Governor Christopher Waller is emerging as a top candidate to serve as the central bank's chair among President Trump's advisers as they look for a replacement for Jerome Powell. Earlier Thursday, Trump said he had chosen Council of Economic Advisers Chairman Stephen Miran to serve as a Fed governor. Trump said that Miran, who will need to be confirmed by the Senate, would only serve the remainder of Adriana Kugler's term, which expires in January. The Bloomberg Dollar Spot index declined on the news, with Waller and Miran both having voiced support for lowering interest rates. We got reaction from Ivy Ng, Chief Investment Officer for the Asia-Pacific at DWS. She speaks with Bloomberg's Haidi Stroud-Watts and Paul Allen on The Asia Trade.
Plus - trade tensions between the US and India are rising, while President Trump has signaled new sanctions on Russia could land as early as Friday. Treasury Secretary Scott Bessent also added that China levies "could be on the table" over the buying of Russian oil. Meantime, Indian Prime Minister Narendra Modi spoke with Brazil's President Luiz Inacio Lula da Silva on Thursday about strengthening trade ties amid rising US tariffs. For more on the growing impact of Washington's reciprocal tariffs, we hear from Inu Manak, Trade Policy Fellow at the Council on Foreign Relations
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Episode Transcript
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Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2 (00:11):
Welcome to the Bloomberg Daybreak Asia Podcast. I'm Charlie pellat
Doug Prisoners Off. This week coming up, we'll get the
latest on the trade front when we hear from Inu
Manak Fellow at the Council on Farm Relations. But we
begin this morning with markets. The dollar slip for a
six consecutive session Friday, poised for its longest losing streak
(00:33):
since March of twenty twenty four. That's after President Trump
tapped Council of Economic Advisor's chair Stephen Myron to serve
as a Federal Reserve governor. Earlier in the date, Myron
threw his support behind Governor Christopher Waller to succeed FED
Chair Jerome Powell. Both have echoed Trump's call for lower
interest rates. For more, we heard from Ivyng, chief investment
(00:57):
officer for the APACK at DWS. She spoke with Bloomberg's
Heidi Stroud Watts and Paul Allen.
Speaker 3 (01:04):
I'd be great to have you here. I just want
to get your thoughts there on this movement at the
FED and you governor potentially for a few months at least.
In Stephen Myyron, he'll of course just be one voice
in the room. But Chris Waller is chair. How does
that sound?
Speaker 4 (01:19):
I see instead of commenting on like a people movement,
we're more focused on the data itself because on last Friday,
labor market data is clearly showing the weakness of the
labor market, and we really look at the Federal Reserve
there that two key mandate they look at is one
is invasion. Of course, invasion data is going to move
higher with the tariff that we're seeing on the market,
but the labor market witness anyway, the federal re civical
(01:42):
for more than dovis stent. So if we look at
next showmans, we still believe that there will before weights
cut on the table.
Speaker 3 (01:49):
The people in the room, though, do make a difference.
I mean both Stephen Myron and Chris Waller, you probably
describe them as duves. More likely the ease in twenty
twenty six.
Speaker 4 (01:58):
Make it easy and easier for sure.
Speaker 3 (02:00):
So where do you see the cash right hitting in
the US next year?
Speaker 4 (02:04):
We're saying about like there would be like a four
weight each of them about twenty five business point like,
so that having more doel federal reserve governor on the
table is definitely better, But idea like the federalism is
still more data. Jifferins. So we focus a lot of
on the economic datas does.
Speaker 1 (02:21):
That return the idea of sort of American exceptionalism in
US assets or is that still a quandary as long
as the trade uncertainty continues.
Speaker 4 (02:31):
I think like that still depends on like what is
the data looking at, like when you talk about US exceptionalism. Like,
so we look at the economic side, look at the
corporate earning size, but if you compare about in terms
of the economic growth that we are seeing in US
in this year, yes, is still higher than eurosoon, but
if you look at the next year, based on our
(02:52):
in house reield erosome, we'll be able to deliver higher
GDB growth than US pretty much Giffern by the physical
stimulus that Germany is going to put on the and
this from the macro perspective, even from the corporate earning perspective, Yes,
US in the second quarter is still deliver excellence results
that we are seeing in the market, particularly driven by
the or the tech company. But if you look at
(03:13):
in the Europe company like for the next year, I'm
not saying about there would be delivered higher earning than
the US company. At least the gap we are seeing
between this two region is going to be narrowing. So
is US still leading the market itself? There were still
majority of the part of the market, but in terms
of incremental money, we believe that there will be some
incremental money. Thinking about on top of US, where would
(03:35):
be a better place to put in when the difference
between US and other region kind of narrative.
Speaker 1 (03:40):
And you do you think Europe still has further to run,
but maybe more selective? What about in Asia as well?
Speaker 2 (03:46):
Asia?
Speaker 4 (03:46):
We actually we like Japan, like I guess it's like
a pre controversy, like we actually particularly like the Japan
like property segments, maybe market we think about if we
are expecting about two ways high coming in the bog like,
why would we actually like the property seven is cell
And the actually market share price is kind of revetting
it right now if you look at Japan property particular
(04:08):
on Japan, jbets is currently trading about fifteen percent discount
to the NAV versus historical average, the Setter Journey ten
percent premium. That's pretty much because of the macro impact
I'm not here to call about like we are done
with the weight hike in Japan that we're definitely not
putting in this case. In fact, our in house we're
thinking about there is two more weight hike coming in
(04:29):
Japan in the next trow months that we are seeing.
The key part is that when you look at close
the global market, which markets still give you a decent
spread between like the property and OIU versus like the
that cosse even you're take into account of the way
time we are putting in, there is still a decent
spread in the Japan market is cell So like that's
just the key part. And then we look at all
the fundamental data, be it office, be logistic like a multifamily,
(04:53):
all the setter isself due to the construction shortage we
are facing right now in Japan because of the aging population,
the demand suppie story is actually quite attractive. And not
to even touch on the like corporate actions that we're
seeing a class or the whole Japan. If you look
at this particular setter with a jay with if the
buy back a month in twenty twenty four, it's already
(05:14):
higher than the last ten year aggregated number of the
buy back a month, So like this setter is actually
paid pretty well with like all the thematic we're talking
about in Japan.
Speaker 3 (05:25):
And how about some of those really trade exposed sectors
of Japan's equity market. So what's you view on that?
And do you see that trade uncertainty now receding or
is it just evolving?
Speaker 4 (05:36):
I think it's like it's depends on where is the
expectations like compared with like on liberation day. Right now
it's like basically receding a little bit, but like in
terms of before the liberation date, it's like definitely all
the export focused company like a trade related company that
we're still getting affected. But like it's also set up
by set because since I was touching on the property
(05:58):
one logistic was the one people kind of say, oh,
does it affected by the trade because there's more related
to the tariff matter. But if you look at Japan
just etcetera, particular for the property funds, it's more focusing
on the domestic consumptions instead of external one. So that
CETA itself is actually relatively immal.
Speaker 1 (06:16):
How do you feel about China because there's relative calm
and it's fully expected that probably that trade truth will continue.
Speaker 4 (06:22):
Yes, yes, I think China isself like in terms of
the tariff impact, like it's actually not really a key
focus on the market, I would say because if you
look at between Trump one and Trump two, given like
the amount exported to the US is actually reducing, and
also the export to US as a percent of China
GDP is also below three percent. At this moment, it's
(06:45):
still a news headline people focusing on, but a lot
of focus actually have been focusing on the domestic consumption
part Like it's a domestic consumption it's really getting better.
Like of course a lot of driver is regarding the
trading policy, consumer stimulus, but we did see that recently
we're in between of the result season in like Hong
Kong China. For some company with more exposure in the
(07:07):
China retail market, they actually say that it's more a
bot based recovery they're seeing, not on that particular semon,
not the particular on high end or like a Circle
Star that is very popular. But this is what they're
saying is like they see the bottoming, they see that
it's a bot based recovery over there.
Speaker 1 (07:25):
I mean in a PAC chief in investment officer at DWS.
Speaker 2 (07:35):
Welcome back to the Daybreak Asia podcast. I'm Charlie Palatine.
This week for Doug Chrisner. Indian Prime Minister Narendra Modi
spoke with Brazil's President Lola Thursday about strengthening trade ties
amid rising US tariffs. Earlier this week, President Trump hit
India with fifty percent tariffs to penalize it for its
(07:56):
trade barriers and purchases of Russian oil. Modi is also
expected to visit China later this month for a summit
with President Ji Jinping, his first trip there in seven years.
For more on the tariff story, we heard from Inu Manak,
fellow for Trade Policy at the Council on Forim Relations.
(08:17):
She spoke with Bloomberg's Heidi Stroud Watts and Paul.
Speaker 1 (08:20):
Allen and a great to agree with us. And this
is another example of President Trump sort of trying to
achieve his foreign policy goals through trade policy. Right, do
you think it will be successful? Given that we know
for India the issue of purchasing Russian crud is really
a deeply structural one for its economy.
Speaker 5 (08:39):
This is going to be a very difficult negotiation with
India and the use of tariffs as a tool for
all sorts of foreign policy objectives has been sort of
the method for President Trump. Now with India, what we're
looking at is the potential for these tariffs to go
into place on August twenty seventh, and that would be
(09:00):
bringing it to about a fifty percent rate. That's an
enormous amount of taxes that we would apply to Indian
imports coming in.
Speaker 4 (09:07):
Now.
Speaker 5 (09:07):
Some of the products that we're most concerned about, like pharmaceuticals,
electronics would not be affected yet, but there's a chance
that all of this will be ratcheted up as well
in due course, making this a very challenging negotiation that
will likely have to be extended.
Speaker 1 (09:23):
What does it mean for India that has sort of
in recent years become the rising counter an ally to
the US against China, right because China also has Russian
crew purchases. But those negation negotiations kind of just keep
getting extended, and we're seeing the likes of traditional US
allies as well, like South Korea, Japan, the Philippines really
(09:44):
struggling to get to a point where they can get
a compromise with the White House.
Speaker 2 (09:49):
You know.
Speaker 5 (09:49):
One of the odd things that we've seen during this
administration has been the fact that traditional allies have been
treated more like adversaries, and our adversaries have seeningly had
an easier time dealing with the US president. So this
is a very odd time and one where there is
a shift in policy that is noticeable. We saw during
(10:12):
the Biden years there was a lot of courting of India,
trying to get India as a bulwark against China on
the US side to adopt some US policies towards China
that were similar. But what we see here is some
sort of transactional deal making that President Trump hopes to
achieve through these tactics, but it's not really clear that
(10:33):
this will pay off. And in the meantime, we see
India reaching out to others at Brazil like China, and
that could actually threaten long term US objectives.
Speaker 3 (10:44):
Yeah, again, to your point on timing, that timing is interesting.
Nurentromodi's going to be meeting Lula to Silva first visit
to China in seven years. The timing is coincidental, but
India of course has a long long history of non alignment.
To these meetings to some degree help India position for
life outside of the US fere.
Speaker 5 (11:02):
In many ways, that's the trajectory that India was taking
for a long time, and only more recently have we
seen this pivot whereby India is looking to strengthen its
ties with the United States in a more productive fashion
and to pivot away from some of those relationships. But
I think President Trump has has made pretty clear that
he is opposed to the bricks countries, including India, from
(11:26):
taking on any sort of counter to US power across
the world or setting up a currency, for example, that
would be a bricks currency. So I think what we're
seeing is sort of the bricks countries again sort of
aligning a little bit on some of these issues, and
perhaps that could lead to a little bit of pressure
on the United States to change course in its current policy.
Speaker 3 (11:48):
And we heard from Narentromodia moment ago. I mean he
vowed to protect Indian farmers at all costs. I mean domestically, politically,
there's a lot on the line for Prime Minister Modi here,
isn't that oh absolute?
Speaker 5 (12:00):
You know, India is one of the toughest negotiators you'll
ever sit across from They have been persistent in maintaining
fairly high levels of protection on many markets, and their
tariffs remain fairly high, and India has not been willing
to back down on that for a very long time.
So I think for the Trump administration, this is an
(12:21):
attempt to sort of force India to make those systemic
changes that have been a problematic for quite a long time.
And I'm not quite sure that India is going to
cave across the board and all these things. But as
we've seen with the deals that have come out so far,
there are certain carrots that have been given in order
to lower these terraf rates, and other countries have been
(12:43):
willing to give something back to the United States, whether
it's in investments or in reducing some targeted terror farrier.
So I can imagine that India could strike some sort
of deal that still maintains quite high levels of protection
and yet gives the United States something that it can
live with.
Speaker 1 (13:01):
Do you see sort of fundamental changes when it comes
to realignment of strategic relationships within Asia, particularly pertaining to
the global self. We've seen efforts by beajing or ready
to do that. Do you think some of these changes
and sort of re alliances, if you will, might be
longer lasting than just this US administration.
Speaker 5 (13:22):
It's entirely possible that we could see global realignment of
a lot of different economic and diplomatic relationships as a
result of the Trump administration's tariff policy. You know, we're
already starting to see trade patterns begin to shift. We're
seeing some partners of the United States look for other
markets to diversify their exports, and so I think that
(13:44):
that could lead to more permanent changes the longer that
this goes on. Now, of course, there could be a
reversal in the future. The courts are reviewing the current
tariffs that have been put in place, and then that
could overturn some of these tariffs. Could still come back
in terms of other statutes and laws that the president
could use to enact additional tariffs. So I think that
(14:07):
for the remainder of President Trump's time in office, this
is going to be a rocky couple of years, and
allies are going to have to weigh whether or not
they're going to wait out any substantive change in US
policy before they make substantive shifts in.
Speaker 3 (14:20):
Their own all right in my nec fellow for Trade
Policy at the Council on Foreign Relations.
Speaker 2 (14:29):
Thanks for listening to today's episode of the Bloomberg Daybreak
Asia Edition podcast. Each weekday, we look at the story
shaping markets, finance, and geopolitics in the Asia Pacific. You
can find us on Apple, Spotify, the Bloomberg Podcast YouTube channel,
or anywhere else you listen. Join us again tomorrow for
insight on the market moves from Hong Kong to Singapore
(14:52):
and Australia. I'm Doug Prisoner and this is Bloomberg
Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2 (00:11):
Welcome to the Bloomberg Daybreak Asia Podcast. I'm Charlie pellat
Doug Prisoners Off. This week coming up, we'll get the
latest on the trade front when we hear from Inu
Manak Fellow at the Council on Farm Relations. But we
begin this morning with markets. The dollar slip for a
six consecutive session Friday, poised for its longest losing streak
(00:33):
since March of twenty twenty four. That's after President Trump
tapped Council of Economic Advisor's chair Stephen Myron to serve
as a Federal Reserve governor. Earlier in the date, Myron
threw his support behind Governor Christopher Waller to succeed FED
Chair Jerome Powell. Both have echoed Trump's call for lower
interest rates. For more, we heard from Ivyng, chief investment
(00:57):
officer for the APACK at DWS. She spoke with Bloomberg's
Heidi Stroud Watts and Paul Allen.
Speaker 3 (01:04):
I'd be great to have you here. I just want
to get your thoughts there on this movement at the
FED and you governor potentially for a few months at least.
In Stephen Myyron, he'll of course just be one voice
in the room. But Chris Waller is chair. How does
that sound?
Speaker 4 (01:19):
I see instead of commenting on like a people movement,
we're more focused on the data itself because on last Friday,
labor market data is clearly showing the weakness of the
labor market, and we really look at the Federal Reserve
there that two key mandate they look at is one
is invasion. Of course, invasion data is going to move
higher with the tariff that we're seeing on the market,
but the labor market witness anyway, the federal re civical
(01:42):
for more than dovis stent. So if we look at
next showmans, we still believe that there will before weights
cut on the table.
Speaker 3 (01:49):
The people in the room, though, do make a difference.
I mean both Stephen Myron and Chris Waller, you probably
describe them as duves. More likely the ease in twenty
twenty six.
Speaker 4 (01:58):
Make it easy and easier for sure.
Speaker 3 (02:00):
So where do you see the cash right hitting in
the US next year?
Speaker 4 (02:04):
We're saying about like there would be like a four
weight each of them about twenty five business point like,
so that having more doel federal reserve governor on the
table is definitely better, But idea like the federalism is
still more data. Jifferins. So we focus a lot of
on the economic datas does.
Speaker 1 (02:21):
That return the idea of sort of American exceptionalism in
US assets or is that still a quandary as long
as the trade uncertainty continues.
Speaker 4 (02:31):
I think like that still depends on like what is
the data looking at, like when you talk about US exceptionalism. Like,
so we look at the economic side, look at the
corporate earning size, but if you compare about in terms
of the economic growth that we are seeing in US
in this year, yes, is still higher than eurosoon, but
if you look at the next year, based on our
(02:52):
in house reield erosome, we'll be able to deliver higher
GDB growth than US pretty much Giffern by the physical
stimulus that Germany is going to put on the and
this from the macro perspective, even from the corporate earning perspective, Yes,
US in the second quarter is still deliver excellence results
that we are seeing in the market, particularly driven by
the or the tech company. But if you look at
(03:13):
in the Europe company like for the next year, I'm
not saying about there would be delivered higher earning than
the US company. At least the gap we are seeing
between this two region is going to be narrowing. So
is US still leading the market itself? There were still
majority of the part of the market, but in terms
of incremental money, we believe that there will be some
incremental money. Thinking about on top of US, where would
(03:35):
be a better place to put in when the difference
between US and other region kind of narrative.
Speaker 1 (03:40):
And you do you think Europe still has further to run,
but maybe more selective? What about in Asia as well?
Speaker 2 (03:46):
Asia?
Speaker 4 (03:46):
We actually we like Japan, like I guess it's like
a pre controversy, like we actually particularly like the Japan
like property segments, maybe market we think about if we
are expecting about two ways high coming in the bog like,
why would we actually like the property seven is cell
And the actually market share price is kind of revetting
it right now if you look at Japan property particular
(04:08):
on Japan, jbets is currently trading about fifteen percent discount
to the NAV versus historical average, the Setter Journey ten
percent premium. That's pretty much because of the macro impact
I'm not here to call about like we are done
with the weight hike in Japan that we're definitely not
putting in this case. In fact, our in house we're
thinking about there is two more weight hike coming in
(04:29):
Japan in the next trow months that we are seeing.
The key part is that when you look at close
the global market, which markets still give you a decent
spread between like the property and OIU versus like the
that cosse even you're take into account of the way
time we are putting in, there is still a decent
spread in the Japan market is cell So like that's
just the key part. And then we look at all
the fundamental data, be it office, be logistic like a multifamily,
(04:53):
all the setter isself due to the construction shortage we
are facing right now in Japan because of the aging population,
the demand suppie story is actually quite attractive. And not
to even touch on the like corporate actions that we're
seeing a class or the whole Japan. If you look
at this particular setter with a jay with if the
buy back a month in twenty twenty four, it's already
(05:14):
higher than the last ten year aggregated number of the
buy back a month, So like this setter is actually
paid pretty well with like all the thematic we're talking
about in Japan.
Speaker 3 (05:25):
And how about some of those really trade exposed sectors
of Japan's equity market. So what's you view on that?
And do you see that trade uncertainty now receding or
is it just evolving?
Speaker 4 (05:36):
I think it's like it's depends on where is the
expectations like compared with like on liberation day. Right now
it's like basically receding a little bit, but like in
terms of before the liberation date, it's like definitely all
the export focused company like a trade related company that
we're still getting affected. But like it's also set up
by set because since I was touching on the property
(05:58):
one logistic was the one people kind of say, oh,
does it affected by the trade because there's more related
to the tariff matter. But if you look at Japan
just etcetera, particular for the property funds, it's more focusing
on the domestic consumptions instead of external one. So that
CETA itself is actually relatively immal.
Speaker 1 (06:16):
How do you feel about China because there's relative calm
and it's fully expected that probably that trade truth will continue.
Speaker 4 (06:22):
Yes, yes, I think China isself like in terms of
the tariff impact, like it's actually not really a key
focus on the market, I would say because if you
look at between Trump one and Trump two, given like
the amount exported to the US is actually reducing, and
also the export to US as a percent of China
GDP is also below three percent. At this moment, it's
(06:45):
still a news headline people focusing on, but a lot
of focus actually have been focusing on the domestic consumption
part Like it's a domestic consumption it's really getting better.
Like of course a lot of driver is regarding the
trading policy, consumer stimulus, but we did see that recently
we're in between of the result season in like Hong
Kong China. For some company with more exposure in the
(07:07):
China retail market, they actually say that it's more a
bot based recovery they're seeing, not on that particular semon,
not the particular on high end or like a Circle
Star that is very popular. But this is what they're
saying is like they see the bottoming, they see that
it's a bot based recovery over there.
Speaker 1 (07:25):
I mean in a PAC chief in investment officer at DWS.
Speaker 2 (07:35):
Welcome back to the Daybreak Asia podcast. I'm Charlie Palatine.
This week for Doug Chrisner. Indian Prime Minister Narendra Modi
spoke with Brazil's President Lola Thursday about strengthening trade ties
amid rising US tariffs. Earlier this week, President Trump hit
India with fifty percent tariffs to penalize it for its
(07:56):
trade barriers and purchases of Russian oil. Modi is also
expected to visit China later this month for a summit
with President Ji Jinping, his first trip there in seven years.
For more on the tariff story, we heard from Inu Manak,
fellow for Trade Policy at the Council on Forim Relations.
(08:17):
She spoke with Bloomberg's Heidi Stroud Watts and Paul.
Speaker 1 (08:20):
Allen and a great to agree with us. And this
is another example of President Trump sort of trying to
achieve his foreign policy goals through trade policy. Right, do
you think it will be successful? Given that we know
for India the issue of purchasing Russian crud is really
a deeply structural one for its economy.
Speaker 5 (08:39):
This is going to be a very difficult negotiation with
India and the use of tariffs as a tool for
all sorts of foreign policy objectives has been sort of
the method for President Trump. Now with India, what we're
looking at is the potential for these tariffs to go
into place on August twenty seventh, and that would be
(09:00):
bringing it to about a fifty percent rate. That's an
enormous amount of taxes that we would apply to Indian
imports coming in.
Speaker 4 (09:07):
Now.
Speaker 5 (09:07):
Some of the products that we're most concerned about, like pharmaceuticals,
electronics would not be affected yet, but there's a chance
that all of this will be ratcheted up as well
in due course, making this a very challenging negotiation that
will likely have to be extended.
Speaker 1 (09:23):
What does it mean for India that has sort of
in recent years become the rising counter an ally to
the US against China, right because China also has Russian
crew purchases. But those negation negotiations kind of just keep
getting extended, and we're seeing the likes of traditional US
allies as well, like South Korea, Japan, the Philippines really
(09:44):
struggling to get to a point where they can get
a compromise with the White House.
Speaker 2 (09:49):
You know.
Speaker 5 (09:49):
One of the odd things that we've seen during this
administration has been the fact that traditional allies have been
treated more like adversaries, and our adversaries have seeningly had
an easier time dealing with the US president. So this
is a very odd time and one where there is
a shift in policy that is noticeable. We saw during
(10:12):
the Biden years there was a lot of courting of India,
trying to get India as a bulwark against China on
the US side to adopt some US policies towards China
that were similar. But what we see here is some
sort of transactional deal making that President Trump hopes to
achieve through these tactics, but it's not really clear that
(10:33):
this will pay off. And in the meantime, we see
India reaching out to others at Brazil like China, and
that could actually threaten long term US objectives.
Speaker 3 (10:44):
Yeah, again, to your point on timing, that timing is interesting.
Nurentromodi's going to be meeting Lula to Silva first visit
to China in seven years. The timing is coincidental, but
India of course has a long long history of non alignment.
To these meetings to some degree help India position for
life outside of the US fere.
Speaker 5 (11:02):
In many ways, that's the trajectory that India was taking
for a long time, and only more recently have we
seen this pivot whereby India is looking to strengthen its
ties with the United States in a more productive fashion
and to pivot away from some of those relationships. But
I think President Trump has has made pretty clear that
he is opposed to the bricks countries, including India, from
(11:26):
taking on any sort of counter to US power across
the world or setting up a currency, for example, that
would be a bricks currency. So I think what we're
seeing is sort of the bricks countries again sort of
aligning a little bit on some of these issues, and
perhaps that could lead to a little bit of pressure
on the United States to change course in its current policy.
Speaker 3 (11:48):
And we heard from Narentromodia moment ago. I mean he
vowed to protect Indian farmers at all costs. I mean domestically, politically,
there's a lot on the line for Prime Minister Modi here,
isn't that oh absolute?
Speaker 5 (12:00):
You know, India is one of the toughest negotiators you'll
ever sit across from They have been persistent in maintaining
fairly high levels of protection on many markets, and their
tariffs remain fairly high, and India has not been willing
to back down on that for a very long time.
So I think for the Trump administration, this is an
(12:21):
attempt to sort of force India to make those systemic
changes that have been a problematic for quite a long time.
And I'm not quite sure that India is going to
cave across the board and all these things. But as
we've seen with the deals that have come out so far,
there are certain carrots that have been given in order
to lower these terraf rates, and other countries have been
(12:43):
willing to give something back to the United States, whether
it's in investments or in reducing some targeted terror farrier.
So I can imagine that India could strike some sort
of deal that still maintains quite high levels of protection
and yet gives the United States something that it can
live with.
Speaker 1 (13:01):
Do you see sort of fundamental changes when it comes
to realignment of strategic relationships within Asia, particularly pertaining to
the global self. We've seen efforts by beajing or ready
to do that. Do you think some of these changes
and sort of re alliances, if you will, might be
longer lasting than just this US administration.
Speaker 5 (13:22):
It's entirely possible that we could see global realignment of
a lot of different economic and diplomatic relationships as a
result of the Trump administration's tariff policy. You know, we're
already starting to see trade patterns begin to shift. We're
seeing some partners of the United States look for other
markets to diversify their exports, and so I think that
(13:44):
that could lead to more permanent changes the longer that
this goes on. Now, of course, there could be a
reversal in the future. The courts are reviewing the current
tariffs that have been put in place, and then that
could overturn some of these tariffs. Could still come back
in terms of other statutes and laws that the president
could use to enact additional tariffs. So I think that
(14:07):
for the remainder of President Trump's time in office, this
is going to be a rocky couple of years, and
allies are going to have to weigh whether or not
they're going to wait out any substantive change in US
policy before they make substantive shifts in.
Speaker 3 (14:20):
Their own all right in my nec fellow for Trade
Policy at the Council on Foreign Relations.
Speaker 2 (14:29):
Thanks for listening to today's episode of the Bloomberg Daybreak
Asia Edition podcast. Each weekday, we look at the story
shaping markets, finance, and geopolitics in the Asia Pacific. You
can find us on Apple, Spotify, the Bloomberg Podcast YouTube channel,
or anywhere else you listen. Join us again tomorrow for
insight on the market moves from Hong Kong to Singapore
(14:52):
and Australia. I'm Doug Prisoner and this is Bloomberg
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