Trump Puts 90-Day Pause on Higher Tariffs, Hikes China Levies to 125%
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Entrepreneur
11 minutes ago
- Entrepreneur
Trump's 50% Tariff on Indian Exports Threatens USD 87 Billion Trade, Experts Warn of Short-term Pain but Long-term Resilience
Nevertheless, there is still a possibility that the tariff tensions could be resolved. India has extended an invitation for talks and welcomed an understanding between the US and Russia for a leaders' meeting in Alaska on 15 August Opinions expressed by Entrepreneur contributors are their own. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. US President Donald Trump's decision to double tariffs on Indian goods has sparked a fresh wave of trade tensions between Washington and New Delhi, with experts warning of immediate disruption but also opportunities for long-term diversification. The escalation began on 30th July 2025, when Trump announced a 25 per cent tariff, accompanied by a provocative tweet: "I don't care what happens between India and Russia. They can take their dead economies down together, for all I care." The remark drew sharp reactions in India and abroad. That initial tariff took effect on 7th August and was already viewed as a significant blow to Indian exporters. But on 6th August, Trump added another 25 per cent levy, raising the total tariff to 50 per cent, the highest rate the US has imposed on any trading partner. The additional 25 per cent is scheduled to take effect on 27 August, leaving a narrow three-week window for talks. The Trigger The move follows difficult trade negotiations and longstanding US criticism of India's high tariffs and non-monetary trade barriers. Washington has also been angered by India's continued purchase of discounted Russian oil, despite Western sanctions and efforts to isolate Moscow over its war in Ukraine. Citing "national security" concerns, the US imposed the measure as a punitive step. With USD 87 billion worth of Indian exports to the US now at risk, the stakes are high. Experts from across sectors weigh in on the long-term impact Aloke Nandi, President, Finrex Forex Advisory Services said, "Over the last few months, horror stories about the impact of tariff hikes by the US have been repeatedly splashed over the media. None of these really looked at the underlying data. Even with a pessimistic view, exports to the US might drop by USD 21 billion, but this will likely be partly offset by higher exports to other nations and reduced imports linked to these goods. A current account deficit (CAD) rising to 1–1.5 per cent is not life-threatening. Unless the US imposes extreme measures like full trade sanctions, India will withstand these tariffs." Sarvadnya Kulkarni, CEO, General Instruments Consortium, acknowledged the immediate blow but noted the potential silver lining, "In the short term, raising tariffs to 50 per cent will swiftly bite, especially for MSMEs. About USD 87 billion in US-bound exports could be affected. In the long run, though, this may force India to diversify markets, bolster value-added manufacturing, and enhance export competitiveness." In fact, the government is already looking to direct Indian exports towards alternative destinations. Recently, Union Minister for Fisheries, Animal Husbandry and Dairying, Rajiv Ranjan Singh, noted that other markets are available for India's seafood exports. "The EU, Japan, South Korea, UK, Russia, Australia, West Asia, South East Asia, and many other countries are open for export of Indian seafood." Meanwhile, Smita Singh, Partner, S&A Law Offices, stressed the disadvantage India now faces. "With India now facing a 50 per cent tariff compared to Vietnam, Japan, and Bangladesh at 15–20 per cent, our exports could be costlier by 35 per cent. Sectors like gems, jewellery, textiles, footwear, apparel, and chemicals, which make up 55 per cent of exports to the US, will be most impacted. The government may need to offer targeted relief if negotiations fail." On the other hand, Kunal Gupta, Co-founder & CEO of EMotorad expressed, "We had projected INR 150 Cr in e-bike exports this year, with over INR 100 Cr destined for the US. The sudden hike has disrupted plans. But India has always thrived on adversity, we'll recalibrate, find new markets, and back our country's vision of self-reliance." In electronics and semiconductors, Sanjeev Kumar, CEO, Logic Fruit Technologies, warned of supply chain risks. "Tariffs of up to 100 per cent on Indian semiconductors and electronics risk erasing supply chain advantages and triggering production migration. Luxury exports like jewellery may remain resilient, but cost-sensitive segments could see significant damage. Policy agility in the coming weeks will define whether this is a setback or a catalyst for strategic course correction." Pawan Gupta, Co-Founder of Fashinza, believes apparel exports face an uphill battle. "At 50 per cent tariffs, exports become unviable. The good news is India's diverse, high-value-added products are in demand in the UK and EU. But apparel manufacturing, with its high labour input and low wages, is not viable in developed markets, this is why tariffs in this sector make little sense." For the medtech sector, Neeraj Katare, Founder of Tracky, sees both risks and opportunities. "The increase in tariffs is a double-edged sword for health tech. It raises import costs for essential components, but it also forces us to localise. With the right infrastructure and incentives, India can become a global health tech manufacturing hub." Himanshu Kohli, Co-founder, Client Associates, placed the issue in a broader economic context. "India's economy is largely domestic-oriented. Merchandise exports to the US account for only 2.2 per cent of GDP. A higher terminal tariff could trim GDP growth by 40–100 bps, but the economy remains relatively insulated compared to export-heavy Asian peers." Looking Ahead The US and India maintain a strong trade relationship, with bilateral trade reaching approximately USD 212 billion in 2024. That year, the US imported around USD 87.3 billion worth of goods from India, giving India roughly an 18 per cent share in total US goods imports. The US goods trade deficit with India stood at about USD 45.8 billion. India's top three exports to the US in 2024 were pharmaceuticals (USD 7.5–8.1 billion), telecom instruments (around USD 10 billion), and precious stones, gems, and jewellery (USD 5.3–10 billion). With the new US tariffs of up to 50 per cent, an estimated 55 per cent of this export value including textiles, gems and jewellery, and engineering goods is directly at risk. Nevertheless, there is still a possibility that the tariff tensions could be resolved. India has extended an invitation for talks and welcomed an understanding between the US and Russia for a leaders' meeting in Alaska on 15 August. New Delhi endorsed the summit, noting it could help end the Ukraine conflict and open prospects for peace, potentially easing the geopolitical tensions underpinning the tariffs. Though, many experts believe the disruption could serve as a catalyst for India to expand into new geographies, strengthen domestic manufacturing, and ultimately emerge more resilient in the global trade arena.
Newsweek
12 minutes ago
- Newsweek
Mexico Makes Tomato Price Changes in Response to Trump's Tariffs
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Mexico has established minimum export prices for fresh tomato exports to the U.S., after President Donald Trump imposed tariffs on tomatoes and withdrew from a bilateral agreement that would have prevented these from taking effect. In the joint announcement, published in the federal gazette on Friday, the country's economic and agricultural ministries said this will allow Mexican tomatoes to maintain access to the key international market. Newsweek has contacted the ministries via email outside of regular business hours for further information on the order. Why It Matters The vast majority of Mexico's tomato exports are destined for the U.S. According to the U.S. Department of Agriculture, of the estimated 2 million metric tons the country will export in 2025, 1.8 million will end up in the American market. The latest anti-dumping duties imposed by the Trump administration risk disrupting this agricultural trade flow and impacting thousands of jobs in the country. Mexico's move is intended to protect its domestic producers from these latest tariffs while preserving internal supplies and staving off downward price pressures. It also comes as the two nations work to finalize a lasting trade agreement. What To Know In July, the Department of Commerce announced that the U.S. would be withdrawing from a 2019 agreement which had suspended investigations into whether Mexico was dumping tomatoes— exporting a product below its normal value or price point—in order to gain a competitive foothold in the American market. As well as terminating the agreement, the department announced that the U.S. would be issuing a 17 percent tariff on most imports of fresh tomatoes from Mexico. Given their dependence on the U.S. market, tomato exporters in Mexico warned that the tariff could significantly destabilize the industry. Moisés Atri, export director for the producer Veggie Prime told The Associated Press that its profit margins were too thin to absorb the new duties and expressed hope that American retail clients would bear some of the costs. Tomatoes from Mexico are displayed on a grocery store shelf on July 14, 2025 in San Anselmo, California. Tomatoes from Mexico are displayed on a grocery store shelf on July 14, 2025 in San Anselmo, Friday's announcement, which has the support of Mexico's tomato producers, according to Reuters, is intended to ease some of these challenges. Setting minimum export prices can ensure exporters don't engage in a race to the bottom that could erode profit margins, helps maintain market stability, while also easing the trade tensions caused by accusations of dumping. Georgina Felix, director of operations at the Fresh Produce Association of the Americas, told Bloomberg that the move is intended to "help growers avoid an increase in anti-dumping duties in the future." Mexico has set specific minimum export prices per kilogram for fresh tomatoes by variety, including $1.70 for cherry and grape tomatoes, $0.88 for Roma tomatoes and $1.65 for round, stemmed tomatoes. The pricing decree applied to definitive exports and did not cap export volumes or set maximum prices, the Mexican ministries said in the joint statement. What People Are Saying Mexico's economy and agriculture ministries, in the joint statement, said: "Failure to establish a minimum export price could lead to price distortions if tomatoes are exported to the U.S. below production costs, disrupting the existing order of the fresh tomato export market and international markets." "Establishing minimum export prices is not intended to restrict volumes, set maximum prices, or distort the market," it continued, "but rather to strengthen and maintain the existing order in the fresh tomato export industry." U.S. Secretary of Commerce Howard Lutnick, upon announcing the new tariffs in July, said: "Mexico remains one of our greatest allies, but for far too long our farmers have been crushed by unfair trade practices that undercut pricing on produce like tomatoes. That ends today. This rule change is in line with President Trump's trade policies and approach with Mexico." Mexican President Claudia Sheinbaum, following the tariff announcement, said: "Mexican tomatoes will continue to be exported to the United States, because the United States has a demand that it cannot meet with any other tomatoes produced anywhere else in the world, even with the additional 17 percent." What Happens Next? In Friday's announcement, the ministries said the minimum export prices will be reviewed at least annually or earlier "when market circumstances warrant." In late July, Trump said that he had placed a 90-day pause on higher tariff rates for Mexico, "with the goal of signing a Trade Deal somewhere within the 90 Day period of time, or longer."
Yahoo
36 minutes ago
- Yahoo
Do NuScale Power and Oklo Have a New Opportunity That's Out of This World?
Key Points NASA has ambitions to deploy a nuclear reactor on the Moon by 2030. NuScale Power and Oklo are two leading designers of small modular reactors. But some privately held companies may be better suited to win NASA's approval. 10 stocks we like better than NuScale Power › With few exceptions, nuclear energy stocks have provided stellar returns in 2025. From new collaborations that small modular reactor (SMR) makers like NuScale Power (NYSE: SMR) and Oklo (NYSE: OKLO) are announcing to President Donald Trump's executive orders meant to advance development of the nuclear industry, investors have been charged up about the prospects of nuclear energy stocks. But a new opportunity for SMR makers has emerged recently that investors will want to familiarize themselves with sooner rather than later. NASA is charged up about its prospects on the moon At a recent press conference, Sean Duffy, Secretary of the Department of Transportation and acting National Aeronautics and Space Administration (NASA) administrator, stated that one of the space agency's goals is to deploy a 100-kilowatt nuclear reactor on the Moon by 2030 as part of the Artemis program. Scheduled to launch in 2027, Artemis 3 intends to return humans to the lunar surface, where they will perform science activities for six days and then return to Earth. Subsequent to the successful completion of Artemis 3, NASA intends to start sending assets to the lunar surface in preparation for the United States establishing a longer-term human presence. Although Duffy didn't identify the nuclear technology by name, SMRs are ideally suited for the plan to deploy a 100-kilowatt fission reactor that he identified during the press conference. Who could be the winners from the lunar-based ambition for nuclear deployment? Currently, there are no SMRs in operation; however, NuScale Power and Oklo are two companies at the forefront of developing the technology, making them potential candidates to benefit from NASA's goal of deploying a nuclear fission reactor on the moon. NuScale Power has two SMR designs -- a 50 megawatt-electric (MWe) and a 77 MWe -- approved by the U.S. Nuclear Regulatory Commission. The company's SMRs can also be scaled in various configurations up to 924 MWe. Oklo, on the other hand, is designing SMRs, dubbed Aurora powerhouses, that are able to produce 15 MWe to 75 MWe. Since the NRC rejected Oklo's design application for its Aurora powerhouses in 2022, the company has been working to complete a new application, addressing the missing information that the NRC had identified. But it's critical for investors to also recognize that there are other companies that will likely be vying for the contract from NASA. One company that seems particularly well suited for the mission is Radiant, a privately held company that's also committed to developing SMR technology. Unlike NuScale Power and Oklo, Radiant's Kaleidos reactor is designed to be considerably smaller: 1 MWe. In fact, Radiant advertises the Kaleidos reactor as a replacement for diesel generators. Typically, diesel generators produce around 1,000 kilowatts to 3,000 kilowatts, so the Kaleidos reactor seems like a more desirable configuration than the SMRs that NuScale Power and Oklo are currently designing. Another potential contender is X-Energy. Like Radiant, X-Energy is privately held, so nuclear energy investors may be less familiar with the company than its publicly held brethren. X-Energy is currently developing an 80-MWe SMR that can also be scaled into various configurations. Should investors be supercharged about NASA's plans? While NASA's plans to deploy a nuclear reactor on the Moon by 2030 may excite the imaginations of space enthusiasts, the reality is that the plan seems incredibly ambitious. However, if we assume that NASA succeeds in adhering to its timeline -- a considerable assumption -- it's not a certainty that NuScale Power or Oklo will receive the thumbs-up from NASA to supply the necessary equipment. Add to the fact that Radiant, X-Energy, and other companies will be motivated to compete for the opportunity to deploy a nuclear reactor on the Moon, and investors would be unwise to power their portfolios with NuScale Power or Oklo solely based on the presumption that they will benefit from NASA's plan. This is not to say that NuScale Power and Oklo should be completely dismissed. Both companies are well worth further investigation from nuclear energy-focused investors for reasons that transcend NASA's lunar ambition. Should you invest $1,000 in NuScale Power right now? Before you buy stock in NuScale Power, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and NuScale Power wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Scott Levine has no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy. Do NuScale Power and Oklo Have a New Opportunity That's Out of This World? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
