Trump backs bill pushing 500% tariffs on Russia's trade partners; India and China in dilemma
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India Gazette
41 minutes ago
- India Gazette
"Will have to cross that bridge when we come to it": Jaishankar on Lindsey Graham's Russian sanctions bill
Washington, DC [US], July 3 (ANI): External Affairs Minister S Jaishankar said on Wednesday (local time) that the Indian embassy and ambassador have been in touch with US Senator Lindsey Graham regarding the bill on Russia and India will have to cross that bridge if it comes to it. While addressing a press conference, Jaishankar stated that India's concerns and interests on energy, security have been made conversant to Graham. When asked about US plans to impose 500 per cent tariffs on the import of Russian Oil, Jaishankar said, 'Regarding Senator Lindsey Graham's bill, any development which is happening in the US Congress is of interest to us if it impacts our interest or could impact our interest. So, we have been in touch with Senator Graham. The embassy, ambassador have been in touch. Our concerns and our interests on energy, security have been made conversant to him. So, we'll then have to cross that bridge when we come to it, if we come to it.' Graham's sanctions bill on Russia would impose a 500 per cent tariff on imports from any nation that purchases Russian oil, gas, uranium and other products, The Hill reported. The bill has over 80 co-sponsors in the Senate, potentially making it veto-proof. After the war erupted between Russia and Ukraine, the US and Western nations imposed sanctions on Moscow. However, India has continued to purchase Russian oil. Earlier in May, Lindsey Graham said he is in touch with US President Donald Trump regarding the bill. Republican lawmakers have indicated they are worried about moving the bill but are waiting for approval from Trump before bringing the legislation to the floor. When asked whether Trump is giving instructions on when the bill will come to the floor, Graham stated, 'We are separate entities coordinating with each other,' The Hill reported. Graham is proposing a carveout for his Russian sanctions bill to exclude nations that help Ukraine's defence, protecting them from a 500 per cent tariff for trading with Russia. (ANI)
News18
41 minutes ago
- News18
Supply Chain Sabotage? China's Manpower Withdrawal From Foxconn India Raises Red Flags
According to top intelligence sources, China's move aims to tarnish India's reputation as a reliable global supply chain partner. China is strategically targeting India's ambition to become a global manufacturing hub, top intelligence sources have told CNN-News18. This is exemplified by the recent withdrawal of Foxconn manpower, which has disrupted the production of the iPhone. Foxconn Technology Group has asked hundreds of Chinese engineers and technicians working in India's iPhone factories to return home, financial news agency Bloomberg said in a report. According to top intelligence sources, this move aims to tarnish India's reputation as a reliable global supply chain partner. China's actions coincide with India's efforts to expand high-tech manufacturing in electronics and electric vehicles under the Production Linked Incentive (PLI) scheme and the Make in India initiative. Top intelligence sources indicate that these non-kinetic moves follow a period during which President Xi Jinping was notably absent from the public eye for nearly two weeks. Such tactics are designed to signal to multinational companies that establishing operations in India might invite Chinese retaliation in the future, sources say. Intelligence sources confirm that China has been involved in coordinated delay actions that include withdrawing over 300 Chinese engineers from Foxconn's India plants and delaying export approvals for critical machinery, alongside restrictions on magnet exports. These disruptions are not isolated incidents but represent a threat to India's economic security and strategic autonomy. According to top intelligence sources, these actions are timed to affect deliveries during tariff-sensitive periods, particularly in light of the tariffs imposed by US President Donald Trump on non-US-made iPhones. This has pressured Apple to increase production in India. The delays force Apple to either absorb the additional costs or reconsider its focus on India as an export hub, say sources. The impact of disruptions at large factories like Foxconn's extends beyond the immediate loss of 300 engineers. Top intelligence sources warn that the livelihoods of thousands of Indian workers and the broader supporting industries will also be significantly affected. First Published:
Mint
42 minutes ago
- Mint
Trump Trade War Fuels Use of Currency Options as Hedge in Europe
European corporate treasurers increasingly are turning to the options market to hedge currency exposure, a more costly method than typically used, as Donald Trump's trade policies cause bigger-than-usual price swings. Daily volumes of currency options surged to a record in early April in the aftermath of Trump's 'Liberation Day' tariff unveil, according to data from the Depository Trust and Clearing Corp. At BNP Paribas SA, one of Europe's largest banks, corporate sales of FX options have doubled year-over-year in 2025 to an all-time high. Companies' increasing use of options for hedging is just one of the many ways Trump's tariffs are re-shaping activity in financial markets. Corporate finance executives are fretting over how to protect their bottom line, given that negotiations are still under way over tariffs that are set to be imposed on July 9. 'Trump has created a lot of uncertainty when it comes to trade,' said Jonas Falk, treasury manager at a unit of flat-pack furniture giant Ikea. He said he's a 'big fan' of using options, a type of derivative, to reduce currency risk and is employing them more than usual this year. Options give the holder the right, but not the obligation, to exchange currencies at a specified rate on or before a set date. They serve as protection for companies looking to limit losses from adverse price moves, or benefit from favorable ones. Some traders also use them for speculative purposes. Hedging with options in the $7.5 trillion-a-day foreign-exchange market gives companies flexibility. Regardless of spot prices, a company can let the option expire and trade at current market levels instead. By contrast, the more popular method of hedging — a forward contract — binds a company to buy or sell according to the initial agreement. While more flexible, options can be more expensive. Purchasing the right to transact comes with an upfront premium, whereas forwards have no initial cost as the transaction is agreed for the future. In the case of IKEA Supply AG, which manages the Swedish company's global supply chain, the business is exposed to pretty much every currency in the world. It's paying more for protection against swings in the market this year, Falk said, as it seeks to shield its low-price business model from disruption. 'I'd rather pay up,' he said. The growth in the use of options is down to the difficulty clients are having with forecasting cash flows, according to BNP, given the lack of certainty about where tariff levels will ultimately settle. 'Companies are buying options for their main utility function which is insurance,' said Fabrice Famery, global head of corporate sales at BNP. 'If you need to adapt your hedging program it's easier than if you enter into a straight forward.' Asian companies have also shown more interest in using options to lock in greater flexibility as tariff uncertainties persist, said Nathan Swami, Citigroup Inc.'s head of foreign exchange trading for the Asia-Pacific region. While China is inching closer to a trade deal, there's still little clarity over what the final iteration of tariffs might look like across the region. While the use of options for corporate hedging strategies isn't new, some have shied away from the derivatives as they can come with more of an upfront cost and seem more complicated. Some companies have been burnt by foreign-exchange derivatives in the past and there have been cases of banks being taken to court for allegations of mis-selling overly complicated instruments. Last year, Deutsche Bank AG resolved a €500 million claim from Palladium Hotel Group over losses suffered on currency contracts. Now, though, market swings are driving renewed demand for derivatives. Many see volumes continuing to increase, given the growing interest in options-based hedging solutions. 'We're now seeing more of an openness to buy or sell options,' said Lisa Dukes, co-founder of treasury risk management specialist Dukes & King and corporate representative on the Bank of England's FX committee. 'Options has always been a dirty word and kind of linked to speculation when actually it's just another way of managing risk.' With assistance from Catherine Bosley and Vassilis Karamanis. This article was generated from an automated news agency feed without modifications to text.
