Trump announces 50% tariff on copper effective from August 1
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Business Standard
24 minutes ago
- Business Standard
Tariff impact on India's iPhone exports unclear despite US exemption
American President Donald Trump has announced that even while he plans to impose 100 per cent duty on imported semiconductors and chips, companies like Apple Inc (and manufacturers of laptops and personal computers) that have their manufacturing base of critical components in the United States (US) but assemble their products (like iPhones) in foreign countries will continue to be exempt from duty. Apple Inc Chief Executive Officer Tim Cook has announced the company is increasing its investment in the US by another $100 billion-600 billion in four years. In a press conference with Cook at the White House, Trump said: 'We will be putting a tariff of 100 per cent on semiconductors and chips, but the good news for companies like Apple Inc is that if you are building in the US, we are committed not to charge them (tariffs on the final product). ' The announcement came just a few days before the report of the Department of Commerce on investigation under Section 232 (of the Trade Expansion Act), aimed at protecting national security on semiconductors and embedded products with semiconductors (mobiles, laptops, personal computers, etc), and is expected to be placed before the President soon. However, the impact of the move on India could be varied compared to what it plans to do with China. Currently tariffs on mobile phones imported from India have zero duty, but China has been slapped a fenytyl tax of 20 per cent. However, experts in the business say the advantage India has on tariffs is neutralised by two factors: The cost of producing iPhones in India is around 10 per cent higher than in China. Hence despite the production-linked incentive (PLI), there is a handicap. And, because of a vibrant supply chain, China can absorb another 10-12 per cent of the increase in cost due to tariff through subsidies from the government and the advantage of scale. The PLI scheme for mobile devices in India is ending next year and the supply chain is in its infancy. The scenario could change even more if the US removes the fenytyl tax on China, bringing it down to zero like that for India and hectic negotiations are on between the two countries to do so. Regardless of Trump's position on duty, the reality under Section 232 is that it has not imposed the same tariffs on all countries. This is evident in the differential tariffs on the United Kingdom and the European Union on various products compared to others. And considering its latest salvo against India, it could well impose a hefty duty on semiconductors for India and leave China out. In simple calculation, a 100 per cent duty effectively means a 40 per cent duty on a smartphone as 35-40 per cent of its cost of production is from semiconductors.
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Business Standard
24 minutes ago
- Business Standard
Trump's sweeping new tariffs take effect, fuelling global trade tensions
President Donald Trump's punishing new tariffs on more than 90 countries snapped into place after the stroke of midnight Thursday, the latest escalation in a global trade war that has started to exact a toll on the US economy. Few of America's major trading partners were spared under Trump's updated slate of duties, which together have sent the average effective US tariff rate to its highest level in nearly a century. In the hours before the import taxes took effect, the president signaled there would be more to come, as he doubled down on a strategy that has rattled markets, driven up prices and spooked consumers and businesses around the world. Trump announced the new rates in a series of executive orders he signed last week, some of which formalised the preliminary trade agreements that he had reached in recent days with the European Union and other countries. The President has long maintained that these levies would help reset trade relationships that he deems unfair, raise new revenue for the US government, spur more US manufacturing and achieve other goals. Trump's tariffs have indeed helped generate money — roughly $152 billion in customs collections through July, recent data show — but his policies have not been without consequence. A growing number of businesses have warned recently that they may no longer be able to stomach the rising costs of key foreign components. As a result, prices have started to climb. The latest monthly measure of inflation showed that appliances, clothing and furnishings became more expensive in June. The economy has grown but at an anemic pace, and some analysts predict little improvement through the remainder of the year. The labor market has experienced its own strains, with hiring sharply slowing in July. Olu Sonola, the head of US economic research at Fitch Ratings, said the economy was just 'starting to see' the effects of the tariffs that Trump announced in the spring, adding that with Trump's newest duties now in place, Americans would 'see that magnified' in coming months. The tariffs start at 15 percent, targeting imports from countries including Bolivia, Ecuador, Iceland and Nigeria. Others, like Taiwan, have a 20 percent tax applied to items sold to US buyers. Trump also imposed a much higher 50 percent tariff on some goods from Brazil. He has cast it as punishment for Brazil's decision to prosecute his political ally Jair Bolsonaro, the country's former president, for seeking to stay in power after losing an election. And on Wednesday, Trump said he would raise tariffs on India to 50 percent by late August for buying Russian oil. The president has signaled he could impose similar penalties on other countries, as he looks for ways to use trade policy to pressure Russia into halting its war against Ukraine. In general, the duties do not apply to foreign goods that have been loaded onto ships just before August 7.
Indian Express
24 minutes ago
- Indian Express
Trump calls for a new census in US to exclude undocumented immigrants
US President Donald Trump on Thursday said he has directed the Commerce Department to revise how the Census Bureau collects population data, a move aimed at excluding undocumented immigrants from official counts. In a post on his social media platform, Truth Social, Trump said future census operations would be based on 'modern day facts and figures and, importantly, using the results and information gained from the Presidential Election of 2024.' The statement suggests Trump may attempt to inject political considerations into data collection processes that underpin a wide range of federal statistics, from poverty rates to economic indicators. He specifically noted that people living in the country illegally would no longer be counted: 'People in our Country illegally should not be counted in the Census,' he wrote. The move marks the latest in a series of efforts by the US President to reshape how the federal government measures social and economic trends. Just last week, Trump fired the head of the Bureau of Labour Statistics, Erika McEntarfer, after revised data showed that US employers added 258,000 fewer jobs than initially reported in May and June. The correction pointed to a significant weakening in hiring under Trump's administration — a potential blow to his narrative of economic resurgence. The White House defended the dismissal, stating that the issue lay in the magnitude of the revisions and that the administration remains committed to maintaining data accuracy.
