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US–APAC trade deals offer stability, modest GDP boost: Fitch

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US–APAC trade deals offer stability, modest GDP boost: Fitch



The recent series of bilateral trade agreements between the US and several Asia-Pacific (APAC) countries have reduced uncertainty around the outlook for Asia’s exporters and could provide a slight lift to gross domestic product (GDP) over the next few years for the countries involved, according to Fitch Ratings.

Between October 20 and 30, the US finalised trade pacts with China, Japan, Korea, Vietnam, Malaysia, Thailand, Australia, and Cambodia. The most notable change is the halving of the 20 per cent US tariff on Chinese goods linked to fentanyl-related categories, effectively lowering China’s average tariff rate by around 10 percentage points (pps), Fitch said in its latest commentary.

Both nations have also agreed to pause new restrictions on critical exports—such as China’s rare earth curbs and the US licensing expansions—creating a temporary reprieve in escalating trade tensions.

US-APAC trade deals with eight nations, including China, Japan, Korea, and Vietnam, ease uncertainty and may modestly lift regional GDP, according to Fitch Ratings.
The halving of US tariffs on Chinese goods and paused export curbs could boost confidence and investment.
Benefits will be gradual and uneven, with India still excluded and fiscal risks rising in some APAC economies.

Fitch expects the new arrangements to provide a mild uplift to growth in China, the US, and indirectly to key export-oriented economies like Korea and Vietnam during 2026–2027. Greater tariff stability is anticipated to restore business confidence, enabling medium- and long-term supply-chain investments, particularly in Malaysia, Thailand, and Vietnam. Meanwhile, new commitments on rare earth sourcing could attract investment into Southeast Asia and Australia, though the macroeconomic impact will be modest in the near term.

Fitch foresees Korea’s export growth slowing in 2026 due to lingering US tariffs and softer demand from China. Japan and Korea’s promised investments in US industries may also pressure foreign-exchange reserves and carry sovereign credit implications if executed aggressively.

Several APAC economies, including Indonesia, Korea, the Philippines, and Thailand, have adopted looser fiscal policies to offset risks from US tariff actions. Fitch warned that such fiscal expansion could hinder debt consolidation efforts, a key rating sensitivity for these sovereigns.

India remains outside the recent deal framework, leaving its exports exposed to a 50 per cent US tariff—significantly higher than for most other Asian partners. The absence of a deal may weaken its competitiveness, though discussions for a future accord are ongoing.

Fitch concluded that while the US–APAC trade deals mark a stabilising shift after years of volatility, the benefits will be gradual and uneven. Key uncertainties—tariff implementation, investment follow-through, and geopolitical risks—will determine whether the agreements translate into sustained regional growth.

Fibre2Fashion News Desk (SG)



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Does December’s rise in UK GfK’s consumer confidence report conceal tougher expectations for 2026?

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Does December’s rise in UK GfK’s consumer confidence report conceal tougher expectations for 2026?


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December 21, 2025

​The latest consumer confidence report from GfK didn’t share the gloom of the one a day earlier from the British Retail Consortium (BRC), but it did reflect its note of caution for the year ahead.

Photo: Pexels

GfK’s long-running Consumer Confidence Index in fact showed confidence is up two points (to -17) in December and all five of its measures edged up this month. But confidence still “remains subdued after a year of no progress”, it noted.

So how did those five measures, come out this time? The personal finances index over the last 12 months increased by one point to -6 month on month; the forecast for personal finances over the next year rose one point to 2; the measure for the country’s general economic situation over the last 12 months increased three points to -40; expectations for the general economic situation over the next 12 months lifted three points to -29; the Major Purchase Index jumped four points to -11; and finally, the Savings Index was unchanged at 24.

Neil Bellamy, Consumer Insights director at GfK, said: “It’s tempting to see festive cheer in December’s two-point improvement in consumer confidence. Are we seeing a sigh of relief that the Autumn Budget wasn’t as bad as most had feared?

“All five measures are up this month led by a four-point jump in major purchase intentions. This is a surprise finding for the UK high street because it contrasts with the Black Friday sales slump we reported on earlier this month. Have people decided to spend on Christmas regardless, and worry about 2026 later?

Bellamy added: “However, looking at the full year, the December headline score of -17 is the same as 12 months ago, and on that basis 2025 has been a year of no progress. UK households still face cost-of-living pressures, despite the recent softening in inflation, along with rising economic uncertainty, and those conditions result in weaker consumer confidence. 

“Sadly, consumers resemble a family on a festive winter hike, crossing a boggy field – plodding along stoically, getting stuck in the mud and hoping that easier conditions are not far off.”

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BRC calls for retailer collaboration on net zero emissions

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BRC calls for retailer collaboration on net zero emissions



The British Retail Consortium (BRC) is urging retailers to strengthen collaboration across the value chain, particularly on scope 3 emissions from supply chains and customer use, to meet net zero goals.

Its new UK Retail 2025 Net Zero Stocktake report uses improved real-world data to assess industry progress, challenges and priorities on the path to net zero.

Using improved data quality and broader coverage, the report provides a clearer picture of industry emissions. The accompanying survey shows strong progress, with 91 per cent of retailers having established and publicly reported GHG baselines, four in five fleet drivers trained in fuel efficiency programmes, and 90 per cent of new retail buildings using LED lighting.

The British Retail Consortium (BRC) has urged retailers to strengthen collaboration across the value chain to tackle scope 3 emissions from supply chains and customer use.
Its new UK Retail 2025 Net Zero Stocktake report uses improved real-world data to assess progress, barriers and priorities for the retail industry’s transition toward net zero.

Yet with over 93 per cent of retail emissions falling outside of direct control, substantive industry progress depends on joined-up retailer collaboration to influence global suppliers into action, British consumers toward large-scale behaviour change, and UK government into supportive policy. 

The report shows that only a third (30 per cent) of the very biggest suppliers provide GHG emissions data and 70 per cent of products do not have information for consumers on responsible sourcing.

Progress in these areas has been held up by systemic challenges, including policy uncertainty, supply chain complexity, financial pressures, and technological limitations.

The BRC will continue to support retailers to deliver the transformative change needed by convening cross-industry stakeholders, continuing to track annual progress, and shaping policy to unlock investment and drive momentum.

“In 2020, we launched the Climate Action Roadmap to set the ambition for UK retail to reach net zero by 2040. Five years on, we must use the takeaways from this report to drive the industry from collective ambition to a step change in collaborative action. The climate emergency is no longer tomorrow’s problem. It is here today; disrupting supply chains, driving shortages, increasing costs for households – and threatening the long-term stability and resilience of UK retail. Climate change is a very real risk to businesses and the consequences of inaction are simply too big to ignore. We need more radical collaboration between companies to bring down emissions and step up the drive to net zero,” Helen Dickinson, CEO of the BRC, said.

Fibre2Fashion News Desk (RR)



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South Indian cotton yarn supported by higher fibre, Tiruppur prices up

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South Indian cotton yarn supported by higher fibre, Tiruppur prices up



The Tiruppur market recorded a price rise of ****;** per kg as mills attempted to pass on higher cotton costs, although local demand remained weak. A trader from Tiruppur told Fibre*Fashion, “Tamil Nadu and other states’ spinning mills are raising prices to cover higher cotton costs. They want to increase prices by ** per cent to fully offset rising production costs, but domestic consumer industry support is lacking. Summer demand is unlikely to pick up before January. The weakening rupee against the US dollar has also provided relief, as mills can compete better in export markets.”

In Tiruppur, knitting cotton yarn prices were noted as ** count combed cotton yarn at ****;****** (~$*.***.**) per kg (excluding GST), ** count combed cotton yarn at ****;****** (~$*.***.**) per kg, ** count combed cotton yarn at ****;****** (~$*.***.**) per kg, ** count carded cotton yarn at ****;****** (~$*.***.**) per kg, ** count carded cotton yarn at ****;****** (~$*.***.**) per kg and ** count carded cotton yarn at ****;****** (~$*.***.**) per kg.



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