Global News Of Note: Foreign Governments React To U.S. Trade Penalties

What happens abroad impacts MSCI members in North America. Here is the latest economic, trade, and other policy news of note for the last week:

• According to Supply Chain Dive, the European Union (EU) will suspend the imposition of countermeasures to U.S. tariffs for 90 days in order “to give negotiations a chance.” The announcement was made by European Commission President Ursula von der Leyen. The EU had been preparing to implement countermeasures on April 15 in response to the 25 percent Section 232 duties that President Donald Trump has placed on all steel and aluminum imports into the United States.
• In hope of avoiding the reciprocal tariffs the U.S. government has announced, but suspended for 90 days, leaders in Vietnam have said they are prepared to crack down on Chinese goods that are being shipped to the United States via its territory. Specifically, according to Reuters, the government will tighten controls on sensitive exports to China.
• Meanwhile, also according to Reuters, officials from Japan’s trade and industry ministry have said they will consider taking action on Chinese steel imports if any unfair practices are identified under World Trade Organization rules. The Japanese government also will continue to urge the U.S. government to exempt imports from Japan from Section 232 steel and aluminum tariffs.