China's Xi will meet EU's von der Leyen, Costa on Thursday
China's Premier Li Qiang will be co-chairing the 25th China-EU summit with the EU leaders the same day.
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Express Tribune
3 hours ago
- Express Tribune
India vows to protect farmers amid Trump's tariff threat
India's Prime Minister Narendra Modi speaks during a joint press statement with European Commission President Ursula von der Leyen at the Hyderabad House in New Delhi, India, February 28, 2025. Photo: Reuters Listen to article Indian Prime Minister Narendra Modi said on Thursday he will not compromise the interests of the country's farmers even if he has to pay a heavy price for it, in his first comments after US President Donald Trump's salvo of a 50% tariff on Indian goods. Trump announced an additional 25% tariff on South Asian nation on Thursday, taking the total levy on Indian goods being exported to the US to 50% among the highest levied on any US trading partner. "For us, our farmers' welfare is supreme," Modi said in a function in New Delhi. "India will never compromise on the wellbeing of its farmers, dairy (sector) and fishermen. And I know personally I will have to pay a heavy price for it," he said. Trade talks between India and the United States collapsed after five rounds of negotiations over disagreement on opening India's vast farm and dairy sectors and stopping Russian oil purchases. Modi did not directly refer to the US tariffs or trade talks. The new tariff, effective from Aug 28, was to penalise India for its purchase of Russian oil, Trump has said. India's foreign ministry has said the decision was "extremely unfortunate," and that "India will take all necessary steps to protect its national interests." The US is yet to announce any similar tariff for China, which is the biggest buyer of Russian oil. Read: India feels the pinch as Trump doubles tariffs Experts have said China has been spared so far as it has a bargaining chip with the US over its reserves of rare earth minerals and other such commodities, which India lacks. "The US tariff hike lacks logic," Dammu Ravi, secretary of economic relations in India's foreign ministry, told reporters. "So this is a temporary aberration, a temporary problem that the country will face, but in course of time, we are confident that the world will find solutions." India has started making moves to signal that it might have to consider other partnerships in the coming months in the face of Trump's tariffs, which have led to the worst diplomatic showdown between the two countries in years. Indian Prime Minister Narendra Modi is preparing for his first visit to China in over seven years, suggesting a potential realignment in alliances as relations with Washington fray. Brazilian President Luiz Inacio Lula da Silva said on Wednesday he would initiate a conversation among the BRICS group of developing nations about how to tackle Trump's tariffs. He said he planned to call Modi on Thursday, and China's Xi Jinping and other leaders. The BRICS group also includes Russia and South Africa. Ravi said "like-minded countries will look for cooperation and economic engagement that will be mutually beneficial to all sides."
Business Recorder
8 hours ago
- Business Recorder
Trump says US will levy 100% tariff on some chip imports
WASHINGTON: The United States will impose a tariff of about 100% on semiconductor chips imported from countries not producing in America or planning to do so, President Donald Trump said. Trump told reporters in the Oval Office on Wednesday the new tariff rate would apply to 'all chips and semiconductors coming into the United States,' but would not apply to companies that had made a commitment to manufacture in the United States or were in the process of doing so. 'If, for some reason, you say you're building and you don't build, then we go back and we add it up, it accumulates, and we charge you at a later date, you have to pay, and that's a guarantee,' Trump added. The comments were not a formal tariff announcement, and Trump offered no further specifics. It is not clear how many chips, or from which country, would be impacted by the new levy. Taiwanese chip contract manufacturer TSMC - which makes chips for most U.S. companies - has factories in the country, so its big customers such as Nvidia are not likely to face increased tariff costs. The AI chip giant has itself said it plans to invest hundreds of billions of dollars in U.S.-made chips and electronics over the next four years. An Nvidia spokesperson declined to comment for this story. 'Large, cash-rich companies that can afford to build in America will be the ones to benefit the most. It's survival of the biggest,' said Brian Jacobsen, chief economist at investment advisory firm Annex Wealth Management. Congress created a $52.7 billion semiconductor manufacturing and research subsidy program in 2022. The Commerce Department under President Joe Biden last year convinced all five leading-edge semiconductor firms to locate chip factories in the U.S. as part of the program. The department said the U.S. last year produced about 12% of semiconductor chips globally, down from 40% in 1990. Any chip tariffs would likely target China, with whom Washington is still negotiating a trade deal. 'There's so much serious investment in the United States in chip production that much of the sector will be exempt,' said Martin Chorzempa, senior fellow at the Peterson Institute for International Economics. Since chips made in China won't be exempt, chips made by SMIC or Huawei would not be either, Chorzempa said, noting that chips from these companies entering the U.S. market were mostly incorporated into devices assembled in China. 'If these tariffs were applied without a component tariff, it might not make much difference,' he said. Chipmaking nations South Korea and Japan, as well as the European Union, have reached trade deals with the U.S., potentially giving them an advantage. The EU said it agreed to a single 15% tariff rate for the vast majority of EU exports, including cars, chips and pharmaceuticals. South Korea and Japan said separately that U.S. agreed not to give them worse tariff rates than other countries on chips, suggesting a 15% levy as well.
Business Recorder
9 hours ago
- Business Recorder
Trump announces $100 billion new investment pledge from Apple
WASHINGTON: President Donald Trump announced on Wednesday that Apple will invest an additional $100 billion in the United States, a move that could help it sidestep potential tariffs on iPhones. The new pledge raises Apple's total domestic investment commitment in the U.S. to $600 billion over the next four years. Earlier this year, the company announced it would invest $500 billion and hire 20,000 workers across the country in that period. The announcement centers on expanding Apple's supply chain and advanced manufacturing footprint in the U.S., but still falls short of Trump's demand that Apple begin making iPhones domestically. 'Companies like Apple, they're coming home. They're all coming home,' Trump told reporters in the Oval Office, moments after Apple CEO Tim Cook gave him a U.S.-made souvenir with a 24-karat gold base. 'This is a significant step toward the ultimate goal of ensuring that iPhones sold in America also are made in America,' Trump added. Asked if Apple could eventually build entire iPhones in the U.S., Cook noted that many components such as semiconductors, glass and Face ID modules are already made domestically, but said that final assembly will remain overseas 'for a while.' While the investment pledge is significant, analysts say the numbers align with Apple's typical spending patterns and echo commitments made during both the Biden administration and Trump's previous term. In May, Trump had threatened Apple with a 25% tariff on products manufactured overseas, a sharp reversal from earlier policy when his administration had exempted smartphones, computers and other electronics from rounds of tariffs on Chinese imports. Trump's effort to reshape global trade through tariffs cost Apple $800 million in the June quarter. Apple expects $900m tariff hit, US iPhone supply shifts to India 'Today is a good step in the right direction for Apple, and it helps get on Trump's good side after what appears to be a tension-filled few months in the eyes of the Street between the White House and Apple,' said Daniel Ives, an analyst with Wedbush Securities. 'A savvy solution' Apple has a mixed track record when it comes to following through on investment promises. In 2019, for instance, Cook toured a Texas factory with Trump that was promoted as a new manufacturing site. But the facility had been producing Apple computers since 2013 and Apple has since moved that production to Thailand. Apple continues to manufacture most of its products, including iPhones and iPads, in Asia, primarily in China, although it has shifted some production to Vietnam, Thailand and India in recent years. Despite political pressure, analysts widely agree that building iPhones in the U.S. remains unrealistic due to labor costs and the complexity of the global supply chain. 'The announcement is a savvy solution to the president's demand that Apple manufacture all iPhones in the U.S.,' said Nancy Tengler, CEO and CIO of Laffer Tengler Investments, which holds Apple shares. Trump says he's 'not interested' in Apple building in India Partners on Apple's latest U.S. investment effort include specialty glass maker Corning semiconductor manufacturing equipment supplier Applied Materials, and chipmakers Texas Instruments, GlobalFoundries, Broadcom and Samsung Apple said Samsung will supply chips from its production plant in Texas for its products including iPhones, while GlobalWafers said it would be supplying 300mm silicon wafers from its Texas plant. Apple shares closed up 5% on Wednesday. Shares of Corning rose nearly 4% in extended trading, while Applied Materials gained almost 2%.
