&w=3840&q=100)
India's April-July exports to US 7 times faster than overall growth: Trump tariff effect?
Majority of Indian exports to the US have been hit by tariffs. Reuters
US President Donald Trump's aggressive tariff threats against India appear to have triggered a rush among Indian exporters to ship consignments early, pushing exports to the US to grow at a far quicker pace than overall trade, according to a report from The Times of India.
With Trump imposing a 25 per cent reciprocal tariff and warning of an additional penalty linked to India's oil trade with Russia, exports to the US during April–July expanded seven times faster than overall growth.
STORY CONTINUES BELOW THIS AD
In April, exporters rushed to beat reciprocal tariffs, and a similar frontloading is now evident ahead of the 27 August deadline for a further 25 per cent levy. As a result, shipments to the US rose 21 per cent to $33.5 billion during April–July, compared with overall exports rising just 3 per cent to $149.2 billion, according to commerce department data.
With the US now accounting for 22 per cent of India's shipments, exporters face higher vulnerability to a potential 50 per cent duty. Still, the surge in exports has given some companies the room to offer discounts if required.
'We have spent the last week talking to buyers and in case of old buyers we are looking at some additional discount to retain the business even if it means that we have to pay out of our pockets for sometime.
'Although official negotiations with the US (scheduled to start Aug 25) have been postponed, we expect some breakthrough in the forthcoming weeks,' said Sudhir Sekhri, chairman of the Apparel Export Promotion Council (AEPC), as quoted by TOI.
Exporters said they had managed to absorb the impact of the first 25 per cent duty already in place, often by sharing costs with buyers and fast-tracking consignments before deadlines. For the next round, some contracts now include clauses stating that discounts will not apply if the additional levy is lifted.
STORY CONTINUES BELOW THIS AD
Industry leaders, however, warn that a 50 per cent tariff would be unsustainable. 'We operate on a very thin margin of 5-7%, where is the question of offering steep discounts to offset the impact of 25% additional duty? We can sacrifice our profits but can't sustain the business with losses,' said Rajendra Kumar Jalan, chairman of the Council for Leather Exports, adding that ongoing US-Russia talks have offered a ray of hope that the penalty may not be enforced.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
15 minutes ago
- India.com
Trump will be unhappy with this 200 number as India makes things easier for China, takes this big step to...
New Delhi: US President Donald Trump has invited trouble without any effort. His move to put pressure on India seems to be backfiring. The whole game has suddenly changed with India and China coming closer in the tariff war. Now India has done something that can hurt Trump a lot. The government is making it easier for China to invest money in India. This is a big sign of improvement in the relations between the two countries. All this is happening at a time when Trump has imposed an additional tariff of 25% on India. This will increase the tariff on Indian goods in America to 50% from August 27. Trump has imposed this tariff due to buying Russian oil. What is the government doing to settle the Chinese FDI? The government is preparing to quickly settle the FDI (Foreign Direct Investment) proposals coming from Chinese companies. For this, the government has given instructions to simplify the approval process. According to sources, the Inter-Ministerial Committee (IMC) headed by the Home Secretary will now work on these proposals expeditiously. A meeting of the IMC was also held last week. A senior official said, 'We have clear instructions. Reduce the time taken to process applications.' According to sources, proposals from non-critical sectors like renewable energy, manufacturing and electronics are still being considered. Dixon Technologies' FDI proposal is also under review. It includes two Chinese partners. 200 FDI proposals are awaiting approval Under Press Note 3, about 200 FDI proposals from China are pending. According to this rule, approval has to be taken from the government before investing in countries sharing a land border with India. The government can dispose of them quickly after getting approval from the IMC and the Cabinet Secretariat. Many Chinese companies have been waiting for their proposals to be approved for a long time. However, officials have also made it clear that this move should not be seen as India's soft stance towards China. A source said, 'India's engagement with Chinese FDI should not be seen through the prism of its relations with the US.'
&w=3840&q=100)
Business Standard
15 minutes ago
- Business Standard
Wall Street slips ahead of Jackson Hole summit, US retailers' earnings
Wall Street's main indexes were down on Monday, as investors awaited a raft of corporate earnings reports from major retailers for more signs about the state of the economy and the Federal Reserve's annual symposium in Jackson Hole. Investors will closely monitor reports from Walmart, Home Depot and Target, among others expected this week, to determine how trade uncertainty and inflation expectations have affected US consumers. "Today is a day more of listlessness in the markets, where we're just waiting to see what happens from the big retailers and then the main event on Friday with (Fed Chair Jerome) Powell," said Brian Jacobsen, chief economist at Annex Wealth Management. Data on Friday showed that while retail sales were increasing broadly as anticipated, consumer sentiment overall had taken a hit from mounting inflation fears. On Monday, the National Association of Home Builders/Wells Fargo Housing Market Index fell to the lowest reading since December 2022. Wall Street's main indexes rallied over the past two weeks, with the blue-chip Dow hitting an intraday record high on Friday, aided by interest rate cut expectations and a better-than-expected earnings season despite an uncertain trade environment. On the geopolitical front, US President Donald Trump and Ukrainian President Volodymyr Zelenskiy met to discuss the future of the war in Ukraine, days after Trump's summit with Russian President Vladimir Putin which yielded no concrete outcome. Trump said he would call Putin and that it was possible the three leaders could hold a meeting. At 1:56 p.m. EDT, the Dow Jones Industrial Average fell 47.13 points, or 0.11 per cent, to 44,898.43, the S&P 500 lost 6.42 points, or 0.10 per cent, to 6,443.38 and the Nasdaq Composite lost 30.45 points, or 0.14 per cent, to 21,592.52. Seven of the 11 S&P 500 sectors edged lower, with communication services in the lead with a 0.9 per cent fall, weighed by Facebook parent Meta's 2.45 per cent slide. Investors continue to price in a 25-basis-point cut from the Federal Reserve next month, although they have lowered their expectations for another rate cut this year, according to data compiled by LSEG. Recent data has also suggested that while US tariffs have not filtered in to headline consumer prices yet, weakness in the jobs market could nudge the central bank to take a more dovish stance. Markets hope that the Fed's Jackson Hole, Wyoming, conference between August 21 and 23, where Powell is expected to speak, could offer more clarity on the economic outlook and the central bank's policy framework. Intel shares fell 3.16 per cent after a Bloomberg report said the Trump administration is in talks to take a 10 per cent stake in the chipmaker. Dayforce jumped 27 per cent after a report said private equity firm Thoma Bravo was in talks to acquire the human resources management software firm. Solar stocks such as SunRun rose 9 per cent and First Solar gained 9.54 per cent after the US Treasury Department unveiled new federal tax subsidy rules for solar and wind projects. Advancing issues outnumbered decliners by a 1.09-to-1 ratio on the NYSE. There were 133 new highs and 28 new lows on the NYSE. The S&P 500 posted nine new 52-week highs and two new lows, while the Nasdaq Composite recorded 73 new highs and 62 new lows.
Time of India
19 minutes ago
- Time of India
Peter Navarro to India: Act like a US partner or pay the price
New Delhi: US President Donald Trump's trade adviser Peter Navarro on Monday criticised India's crude oil imports from Russia, calling the move "opportunistic" and warning that if India "wants to be treated as a strategic partner of the US, it needs to start acting like one". In an opinion piece in the Financial Times, Navarro alleged that India was "now cosying up to both Russia and China" and argued that New Delhi's Russian crude purchases must stop as they were financing Moscow's war in Ukraine. His comments come ahead of Prime Minister Narendra Modi's meeting with Chinese President Xi Jinping later this month, even as Chinese foreign minister Wang Yi visits New Delhi for talks on the disputed border. "This two-pronged policy will hit India where it hurts-its access to US markets - even as it seeks to cut off the financial lifeline it has extended to Russia's war effort," Navarro wrote. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Crossout 2.0: Supercharged Crossout Play Now Undo He said India's reliance on Russian crude was "opportunistic and deeply corrosive of global efforts to isolate Putin's war economy". The remarks assume significance as US trade negotiators have postponed their planned August 25-29 visit for the sixth round of Bilateral Trade Agreement talks , the first tranche of which is targeted for conclusion by autumn. Live Events Trump has already imposed a 50% tariff on Indian goods, including a 25% penal levy for continued purchases of Russian oil, despite the external affairs ministry's assertion that India is being unfairly singled out while the US and EU continue to source energy from Moscow. While the 25% tariff on Indian goods entering the US took effect on August 7, the additional 25%, announced as penalty for crude and defence imports from Russia, will kick in on August 27. "India acts as a global clearing house for Russian oil, converting embargoed crude into high-value exports while giving Moscow the dollars it needs," Navarro wrote, adding that it was risky to transfer cutting-edge US military capabilities to a country "cosying up to both Russia and China".
