The US has eased export restrictions on China for chip design software and ethane, a sign that trade tensions are calming between the two countries.
Software firms like Synopsys (SNPS), Cadence (CDNS), and Siemans (SIEGY) said they will now sell their chip design tools to Chinese customers again. The US also removed limits on ethane exports to China that it had set just weeks ago.
Meanwhile, President Trump on Wednesday said he had reached a trade deal with Vietnam, one week ahead of a July 9 deadline for tariffs to snap back to higher levels for US partners.
Trump said Vietnam’s goods imported to the US would face a 20% tariff, lower than the 46% tariff he had levied as part of his “Liberation Day” plans but higher than the blanket 10% tariff currently in effect. He also said Vietnamese goods would face a higher 40% tariff “on any transshipping” — when goods shipped from Vietnam originate from another country, like China.
Trump said that US goods exported to Vietnam would not face a tariff.
“In other words, they will ‘OPEN THEIR MARKET TO THE UNITED STATES,'” Trump wrote on Truth Social.
The deal would be the second the US has struck with a trade partner since Trump paused those sky-high “Liberation Day” duties, in addition to a pact with the United Kingdom. The US has also agreed with China on a framework to move toward a larger trade deal.
Trump’s July 9 deadline has come back in focus in recent weeks as more countries struggle to get over the hump. Trump earlier this week said negotiations with Japan had soured, saying he would force Japan to accept higher tariffs of “30%, 35%, or whatever the number is that we determine.” Notably, that proposal is higher than the 24% “Liberation Day” level.
“I’m not sure we’re going to make a deal,” Trump said. “I doubt it with Japan. They’re very tough. You have to understand, they’re very spoiled.”
Meanwhile, the European Union has signaled it was willing to accept a 10% universal tariff on many of its exports but is seeking exemptions for pharmaceuticals, alcohol, semiconductors, and commercial aircraft as part of a trade deal.
On the North American front, Canada has scrapped its digital services tax that was set to affect large US technology companies. The White House said trade talks between the two countries had resumed after Trump threatened to cut off trade talks.
Read more: What Trump’s tariffs mean for the economy and your wallet
Here are the latest updates as the policy reverberates around the world.
LIVE 1320 updates
As trade war truce with China holds, US lifts curbs for chip design software and ethane
The US has removed export restrictions on chip design software and ethane shipments to China, easing trade tensions between the two countries. China recently made concessions over its rare earth export controls.
Software companies Synopsys (SNPS), Cadence (CDNS) and Siemens (SIEGY) said they will now restore access for their Chinese customers. These firms develop important electronic design automation tools used in chipmaking.
The US also lifted licensing rules for ethane producers. Earlier restrictions were part of Trump’s response to China blocking rare earth exports, which had disrupted supply chains for cars, aerospace and defence industries.
Reuters reports:
Read more here.
South Korea puzzles over US trade demands as deal still elusive
The South Korean President Lee Jae Myung said on Thursday that it still remains unclear if trade talks between Seoul and Washington can result in a deal before next week’s deadline to avert sweeping tariffs from President Donald Trump.
Bloomberg News reports:
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Trump aims to shut trade loopholes China uses to evade tariffs
President Trump has his eye on any loopholes that China may use to swerve tariffs. Trump’s two-tired trade deal with Vietnam takes aim at practices China has used to avoid US tariffs, such as the widespread shifting of production to Southeast Asian factories and the illegal “origin washing” of exports through their ports.
Beijing has responded and said it was “conducting an assessment” of the US-Vietnam trade deal, adding: “We firmly oppose any party striking a deal at the expense of China’s interests.”
“If such a situation arises, China will take resolute countermeasures to safeguard its legitimate rights and interests,” the ministry added.
Bloomberg News reports:
Read more here.
Why are farm goods holding up the India-US trade deal?
The US and India are on the verge of sealing the deal when it comes to reducing tariffs. But there appears to be one sticking point ahead of President Trump’s July 9 deadline and it centers around dairy and agriculture. Here’s an explainer on why farm goods may hold up a trade deal between the two nations.
Reuters reports:
Read more here.
China hits out at Donald Trump’s trade deal with Vietnam
China is growing more worried as President Trump strikes deals with other countries. On Thursday Beijing hit out at the US-Vietnam trade deal, amid concerns that the US is using “Liberation Day” tariff negotiations with countries to curb China’s export machine.
The deal with Vietnam, which was announced by the US President on Wednesday, lowers tariffs on Hanoi’s exports from 46% to 20%, but it retains a 409% levy on t”trans-shipping” of goods, which China believes is aimed at its re-exports to the US.
.The FT reports:
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Indonesia to sign $34B pact with US partners ahead of tariff negotiation deadline
Indonesia plans to sign a $34 billion deal with US businesses next week to increase purchases and help secure a trade agreement before the July 9 deadline, its top economic minister said Thursday.
Reuters reports:
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Beijing braces for US trade deals that aim to shut out China
The trade truce between the US and China may be holding for now, but China is becoming wary that it may thaw. Beijing’s concerns stem from what may be happening elsewhere and the US’s efforts to forge deals that could isolate Chinese firms from global supply chains.
The US has removed export restrictions on chip design software and ethene shipments. China has responded by making concessions over its rare earth export controls. But despite this, China is still on edge.
Bloomberg News reports:
Read more here.
US, India push for trade pact after Trump strikes deal with Vietnam: Sources
Trade negotiations between the US and India have been moving forward. But unresolved issues over US dairy and agriculture have caused some disagreements between the two sides, according to sources familiar with the talks.
Reuters reports:
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Wed, July 2, 2025 at 4:00 PM UTC
How the US trades with Vietnam, by the numbers
President Trump had targeted Vietnam with some of the highest tariffs of any country on his April “Liberation Day.” That’s at least partly because he and top advisers have made Vietnam an example of a country that is allegedly “ripping off” the US.
Vietnam has become the US’s 10th-largest trade partner, according to US Census data. And it is the seventh-largest source of imports, sending goods worth over $130 billion. It contains factories for some of the biggest US-based apparel makers, including Nike (NKE) and Lululemon (LULU).
Vietnam became a destination for companies looking to diversify manufacturing as US-China tensions escalated over the past decade. Vietnam’s trade surplus with the US ballooned to over $123 billion last year.
This year’s US trade deficit with Vietnam stood over $50 billion through just April as companies raced to move more operations out of China.
Wed, July 2, 2025 at 3:14 PM UTC
US to impose 20% tariff on goods from Vietnam, 40% rate on transshipments
President Trump followed up his previous announcement of a trade deal with Vietnam with some additional details on social media.
“It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam after speaking with To Lam, the Highly Respected General Secretary of the Communist Party of Vietnam,” Trump posted on Truth Social.
Trump wrote that the two sides agreed to a 20% tariff rate on all goods sent from Vietnam to the US and a 40% tariff rate on transshipment — essentially, when goods from China or other countries are routed through Vietnam. Tariffs on goods from the country were previously set to return to 46% on July 9.
Vietnam also lowered tariffs on US goods to zero, Trump said, and is lowering trade barriers. The president suggested US automakers could introduce more SUVs to the Southeast Asian country.
“In return, Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade,” Trump wrote. “In other words, they will ‘OPEN THEIR MARKET TO THE UNITED STATES,’ meaning that, we will be able to sell our product into Vietnam at ZERO Tariff.”
Wed, July 2, 2025 at 2:59 PM UTC
US wants Vietnam to pay higher tariff based on foreign content
The US and Vietnam are said to be very close to a establishing a trade framework that will see goods given a scaled range of tariffs depending on the percentage of foreign content, according to people familiar with the talks.
Reuters reports:
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Wed, July 2, 2025 at 2:54 PM UTC
Rivian reports 22% fall in quarterly deliveries as tariffs hit demand
Tariffs have hit electric vehicle maker, Rivian (RIVN) who reported a sharp fall in second-quarter deliveries on Wednesday as demand for its EVs took a hit from competition and tariff-driven economic uncertainty.
Reuters reports:
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Wed, July 2, 2025 at 2:34 PM UTC
Trump says US reached trade agreement with Vietnam
President Trump said that his administration has struck a preliminary trade agreement with Vietnam a week before the self-imposed deadline of July 9.
“I just made a Trade Deal with Vietnam. Details to follow!” Trump posted on Truth Social.
While we don’t yet know the details of the deal, Vietnam had been seeking to secure tariffs in the range of 20% to 25%, below Trump’s “Liberation Day” rate of 46% for goods from the country, according to a Bloomberg report.
The US had been looking to stop the flow of goods from China that had been rerouted through Vietnam to circumvent tariffs. Vietnam had offered to remove all tariffs on US goods and step up trade enforcement, according to people familiar with the talks.
Wed, July 2, 2025 at 12:33 PM UTC
Tariffs test Japanese carmakers’ shock absorbing powers
When President Trump imposed his 25% tariffs on imported Japanese cars, the expectation had been higher sticker prices for US consumers and a drop in sales. It was expected that the added costs to exporters would be passed on to the consumer. However, the policy has been in place for months and the outcomes has proven far less intense.
Bloomberg News reports:
Japanese automakers’ US sales have shown surprising resilience. Toyota (TM), for example, hit a global sales record in May, with North America sales up more than a tenth. Part of that is thanks to their local US production.
Read more here.
Wed, July 2, 2025 at 12:30 PM UTC
Analysis shows Trump’s tariffs would cost US employers $82.3 billion
A key group of US employers would face direct costs of $82.3 billion from President Donald Trump’s current tariff plans. These costs could lead companies to hike prices, layoff staff, lead to hiring freezes and lower profit margins, according to analysis by the JP Morgan Institute.
AP reports:
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Wed, July 2, 2025 at 11:22 AM UTC
Big, left-hand drive US cars a tough sell in Japan: Ishiba
Japan’s Prime Minister Shigeru Ishiba has blasted American cars, saying they are a tough sell in Japan. Ishiba added that his government needs to discuss with the US how to boost car imports from America.
Bloomberg News reports:
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Wed, July 2, 2025 at 11:15 AM UTC
Why your fourth of July fireworks may be disrupted — next year
As the US gets ready to celebrate its Independence Day on July 4, the day it was liberated and rebelled against British rule, there is still one area that it may still be dependent on and thats China.
Bloomberg News reports:
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Wed, July 2, 2025 at 10:34 AM UTC
They tried Made in the USA. It was too expensive for their customers.
For many companies, the process from manufacture to sales has always started in China. When Plufl co-founders, Yuki Kinsohita and Noah Sliverman, began making dog beds for humans and pitched their prototype to Shark Tank in 2022, they envisioned making their plush, memory foam beds in China and selling them at retail in the US for $299.
Mark Cuban and Lori Greiner both invested $200,000 for a 20% share in the business, which went on to make over $1 million in sales in 2023, via Amazon and on their company website.
However, this dream changed overnight when President Trump slapped a 145% tariff on items imported from China in April. The business leaders sprang into action and started to look at retailers and whether they would be interested in selling a US-made version of the human dog beds.
Reuters reports:
Read more here.
Wed, July 2, 2025 at 10:20 AM UTC
Italy could lose $23.6B in exports, 118,000 jobs with US tariffs: Industry head
The risk that tariffs pose to the global economy have never been more real and now for Italy the macroeconomic pressures that President Trump’s tariffs bring are very concerning, with the head of the main Italian lobby saying on Wednesday that Italy risks losing around $23.6 billion in exports and 118,000 jobs if the US imposes tariffs of 10%.
Reuters reports:
Read more here.
Wed, July 2, 2025 at 9:30 AM UTC
Trump tariff risks put Asian stocks’ strong July record to test
If investors are expecting a seasonal lift for Asian equities this summer, they may have to think again. Tariff pressures and macroeconomic concerns have started to dampen sentiment.
Bloomberg News reports:
Read more here.
