US Senator Bernie Sanders urges congress to end US military aid to Israel
US Senator Bernie Sanders urges congress to end US military aid to Israel
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CNA
an hour ago
- CNA
Trump orders extra 25% tariff on Indian goods, straining trade ties further
WASHINGTON: US President Donald Trump on Wednesday (Aug 6) ordered an additional 25 per cent tariff on goods from India for its purchases of Russian oil, in a move that threatens to severely disrupt bilateral trade and marks the sharpest downturn in ties since his return to office. The tariff, set to take effect in three weeks, comes on top of a separate 25 per cent duty entering into force on Thursday, according to the text of the executive order released by the White House. The order also threatens potential penalties on other countries deemed to be "directly or indirectly importing Russian Federation oil". Exemptions remain for items targeted by separate sector-specific duties such as steel and aluminium, and categories that could be hit, like pharmaceuticals. The White House said the move was "necessary and appropriate". INDIA HITS BACK India's foreign ministry said the decision was "extremely unfortunate" and that New Delhi will take all actions necessary to protect its national interests. "Our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India," it said in a statement. "It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest." Trump has been ramping up pressure on India after signalling fresh sanctions on Moscow if it did not make progress by Friday towards a peace deal with Kyiv, as Russia's invasion of its neighbour drags on. India's national security adviser was in Moscow on Wednesday, media in New Delhi reported, coinciding with a visit by US envoy Steve Witkoff. India's foreign ministry earlier said US pressure to stop it from buying Russian oil was "unjustified and unreasonable" and that it would protect its interests. ECONOMIC FALLOUT FOR INDIA Analysts say the new tariffs, which could push Indian export duties to as high as 50 per cent, will impact sectors such as textiles, footwear, gems and jewellery. India exported nearly US$87 billion worth of goods to the US in 2024. 'This is a severe setback. Nearly 55 per cent of our shipments to the US will be affected,' said S.C. Ralhan, president of the Federation of Indian Export Organisations. Indian exporters now face a 30 to 35 per cent disadvantage compared with competitors in Vietnam, Bangladesh and Japan, economists warn. The move follows five rounds of stalled trade talks, derailed by disagreements over US access to Indian agriculture and dairy markets, and New Delhi's refusal to cut Russian oil imports, which hit a record US$52 billion last year. The timing of the tariffs, effective 21 days after Aug 7, suggests Washington may still be open to negotiation, according to Indian officials. 'We still have a window,' a senior official said, adding that phased cuts in Russian oil imports could be part of a compromise. NO RETALIATION PLANNED India has not announced any retaliatory tariffs or plans for a high-level visit to Washington. Instead, the government is considering domestic relief for exporters, including loan guarantees and interest subsidies. A sharp drop in shipments to the US could drag India's GDP growth below 6 per cent this year, down from the central bank's 6.5 per cent forecast, said Sakshi Gupta of HDFC Bank. Markets responded with caution, the Indian rupee weakened in offshore forwards trade, and equity futures fell modestly. 'Unless there's swift clarity or a breakthrough, a near-term knee-jerk market reaction is inevitable,' said Mayuresh Joshi, head of equity research at Willian O' Neil. CHINA EXEMPT, FOR NOW Trump's move could reshape India's economic ambitions. Many American companies have seen India as an alternative to Chinese manufacturing, which Trump had hoped to diminish through the use of tariffs. Even though China also buys oil from Russia, Beijing was not subject to the additional tariffs in the order signed by the Republican president. The US and China are currently in negotiations on trade, with Washington imposing a 30 per cent tariff on Chinese goods and facing a 10 per cent retaliatory tax from Beijing on American products. Meanwhile, Indian Prime Minister Narendra Modi is preparing for his first visit to China in over seven years, raising speculation about a potential shift in New Delhi's strategic alignments.
CNA
3 hours ago
- CNA
Swiss president meets US Secretary of State for last-minute trade talks
WASHINGTON: Swiss President Karin Keller-Sutter met US Secretary of State Marco Rubio on Wednesday (Aug 6) as Switzerland scrambled to avert a crippling 39 per cent tariff on its exports, with Washington reportedly seeking increased Swiss purchases of US arms and energy in exchange for easing the duties. The Swiss delegation, which includes Business Minister Guy Parmelin, landed in Washington on Tuesday for final negotiations. The talks come just one day before the punitive tariffs are set to take effect, threatening major damage to Switzerland's export-reliant economy. According to a Swiss source familiar with the talks, the Trump administration is pushing for Switzerland to buy more liquefied natural gas and defence products as part of any deal. "Look at the European Union – they promised to buy LNG. Switzerland imports LNG too — maybe that's one path," Parmelin said over the weekend. SEEKING A BETTER DEAL In a recent agreement with Washington, the EU secured a reduced 15 per cent tariff rate by pledging to buy US$750 billion in energy products over three years and to increase defence spending. While not formally committing to buy more arms, EU officials suggested US companies would benefit from increased NATO-linked military expenditures. Switzerland already purchases US military hardware and has committed to buying F-35A Lightning II fighter jets from Lockheed Martin in a deal worth 6 billion Swiss francs (US$7.43 billion). However, the trade standoff has fuelled calls from some Swiss politicians to cancel the F-35 order as a retaliatory measure if tariffs go ahead. LOOMING ECONOMIC HIT Keller-Sutter's meeting with Rubio began at 10:15am (1415 GMT) and was scheduled to last one hour, according to the State Department. 'There are currently no plans to meet President Trump, but the situation could change,' a Swiss government official told Reuters. Earlier in the day, the Swiss delegation met with key business leaders, including Roche Chairman Severin Schwan, Partners Group co-founders Alfred Gantner and Marcel Erni, and Daniel Jaeggi, president of commodity firm Mercuria. Further meetings with Swiss companies operating in the US were planned. "We greatly appreciate the tireless commitment of the Federal Council and the Federal Administration," said Noe Blancpain, executive board member of Swiss industry group Swissmem. The US is a top destination for Swiss exports, including watches, machinery and chocolate, all of which would be hit hard by the proposed 39 per cent tariff, far exceeding the rates secured by Britain, Japan and the EU. Swiss business associations have warned that tens of thousands of jobs could be at risk. Swiss cheese makers are particularly concerned, with the US accounting for 11 per cent of all cheese exports last year, including Gruyère and Emmentaler. "The taxes are enormous," said Anthony Margot, a fifth-generation cheese maturer. "We can't replace a market like the United States overnight." The Swiss Market Index was down 1 per cent in early afternoon trading on Wednesday ahead of the tariff deadline. WINNING OVER TRUMP The latest push follows a July draft agreement between Switzerland and the US, which reportedly set tariffs at 10 per cent. But Trump abruptly reversed course last Friday following what officials described as a difficult phone call with Keller-Sutter. Swiss sources denied a breakdown in relations but acknowledged the call did not go well. "Trump's team and the Swiss negotiators apparently already struck a deal. So it's in their mutual interest to get it over the line with Trump himself," said Claude Maurer, chief economist at Swiss think tank BAK Economics.
Business Times
4 hours ago
- Business Times
Trump imposes additional 25% tariff on Indian goods, relations hit new low
[WASHINGTON] US President Donald Trump on Wednesday (Aug 6) issued an executive order imposing an additional 25 per cent tariff on Indian goods citing New Delhi's continued imports of Russian oil, sharply escalating tensions between the two countries after trade talks collapsed. The new measure raises tariffs on some Indian goods to as high as 50 per cent – among the steepest faced by any US trading partner. The move is expected to hit key Indian export sectors including textiles, footwear, and gems and jewellery and marks the most serious downturn in US-India relations since Trump returned to office in January. It also comes as Indian Prime Minister Narendra Modi prepares for his first visit to China in over seven years, suggesting a potential realignment in alliances as ties with Washington fray. 'India will take all actions necessary to protect its national interests,' India's external affairs ministry said in a statement, saying it was 'extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest.' It said India's imports were based on market factors and aimed at energy security for its population of 1.4 billion. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Trade analysts warned the tariffs could severely disrupt Indian exports. The additional 25 per cent tariff comes into effect 21 days after Aug 7, the order said. 'With such obnoxious tariff rates, trade between the two nations would be practically dead,' said Madhavi Arora, economist at Emkay Global. Indian officials have privately acknowledged growing pressure to return to the negotiating table. A potential compromise could involve a phased reduction in Russian oil imports and diversification of energy sources. A senior Indian official said New Delhi was blindsided by the sudden imposition of the new levy and the steep rate, as both countries continue to discuss trade issues. Trump's decision follows five rounds of inconclusive trade negotiations, which stalled over US demands for greater access to Indian agriculture and dairy markets. India's refusal to curb Russian oil purchases – which surged to a record US$52 billion last year – ultimately triggered the tariff escalation. 'Exports to the US become unviable at this rate. Clearly, risks to growth and exports are rising, and the rupee may face renewed pressure,' said Garima Kapoor, economist at Elara Securities. 'Calls for fiscal support are likely to intensify.' Trump's executive order does not mention China, which also buys Russian oil. A White House official had no immediate comment on whether an additional order covering those purchases would be forthcoming. US Treasury Secretary Scott Bessent last week said he warned Chinese officials that continued purchases of sanctioned Russian oil would lead to big tariffs due to legislation in Congress, but was told that Beijing would protect its energy sovereignty. The US and China have been engaged in discussions about trade and tariffs, with an eye to extending a 90-day tariff truce that is due to expire on Aug 12, when their bilateral tariffs shoot back up to triple-digit figures. REUTERS
