India exporters cautiously optimistic as US tariff deadline looms
While India -- the world's most populous country -- is not a manufacturing powerhouse, it still ran up a $45.7 billion trade surplus with the United States last year.
And now some of its most labour-intensive exports, including electronics, gems and jewellery and shrimp, are under threat.
Exporters are "optimistic" that India may be able to carve out a bilateral agreement on the "trade side at least", Ajay Sahai, Director General of the Federation of Indian Export Organisations, told AFP.
But he added that it was "quite a fluid situation", suggesting one outcome could see the deadline extended, given that India is "constructively engaged" with Washington.
"The feedback which I am getting suggests positive developments either way -- and we are hopeful," he added.
India's seafood industry is seeing "some amount of anxiety", but also "more reason for hope", said KN Raghavan, Secretary General, Seafood Exporters Association of India.
He did not give details, but said a "solution appears to be in the anvil".
US officials have been upbeat about the prospect of an agreement.
Trump on Tuesday raised the possibility of an agreement, saying it is "going to be a different kind of a deal".
"It's going to be a deal where we're able to go in and compete," he added. "Right now, India doesn't accept anybody in. I think India is going to do that, and if they do that, we're going to have a deal for much less tariffs."
His Commerce Secretary Howard Lutnick said last month that a pact could be expected in the "not too distant future".
However, Indian media reports on Tuesday, quoting unnamed sources, struck a more neutral tone, saying negotiators were still working to resolve key differences that had cropped up during talks.
An Indian commerce ministry official told AFP that New Delhi's unmet demands included relief from separate sectoral tariffs on steel and aluminium as well a greater access for labour-intensive exports including textiles and footwear.
They have also spoken of disagreements over Washington's push to have India open up its agriculture sector and allow freer trade of American farm produce.
Finance Minister Nirmala Sitharaman has said she was eager for a deal.
"I'd love to have an agreement, a big, good, beautiful one; why not?" she told India's Financial Express newspaper, in an interview printed on Monday.
Sitharaman, however, added that "agriculture and dairy" are the "very big red lines".
Experts believe a smaller agreement is still possible ahead of the deadline.
"The more likely outcome is a limited trade pact," said Ajay Srivastava of Global Trade Research Initiative, a New Delhi-based think-tank in a recent note.
Srivastava said that under such a deal, India could cut tariffs on a range of industrial goods and offer limited access for US agricultural produce --- in return for Trump dropping the 26 percent levies.
But he also warned that talks "may collapse" if Washington "continues to insist on opening India's core agriculture sectors or allowing entry of GMO (genetically modified organism) products".
And seafood exporters remain on edge as talks go down to the wire.
"Currently, exporters believe they can manage with a 10 percent tariff, as it can be absorbed. But if it goes back up to 25 percent to 30 percent levels, we could see American buyers finding alternative sources," Raghavan said.
"They will find some other cheaper source," he added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
France 24
38 minutes ago
- France 24
Ten years after Brazil mine disaster, pollution persists
The 2015 dam collapse which killed 19 people was one of Brazil's worst environmental disasters, with survivors saying the Doce River region north of Rio de Janeiro remains heavily polluted. "The entire ecosystem around the river was destroyed," Marcelo Krenak, a leader of the Krenak Indigenous people, told AFP on the sidelines of a hearing in London held this week. The hearing is part of a large-scale legal action brought by claimants seeking compensation from Australian mining giant BHP -- which, at the time of the disaster, had one of its global headquarters in the UK. "My people, the culture, has always been linked to the river," Krenak said, wearing a traditional headdress with striking blue feathers. "The medicinal plants that only existed in the river are contaminated, the soil is contaminated, so you cannot plant, you cannot use the river water for animals," he added. Following a mega-trial that concluded in March, the claimants now await a decision from the British High Court in the coming weeks regarding BHP's liability for the disaster. The Fundao tailings dam at an iron ore mine in Minas Gerais state was managed by Samarco, co-owned by BHP and Brazilian miner Vale. The High Court is already preparing the second phase of the case to determine potential damages and compensation, which could begin in October 2026 if BHP is found liable. 'Terrible tragedy' The company told AFP that "the recovery of the Doce River, the water quality of which had already returned to pre-dam failure levels, remained a focus". Acknowledging the "terrible tragedy", BHP said it is "committed to supporting Samarco to do what's right by the Brazilian people, communities, organisations, and environments affected by the dam failure". BHP maintains that the compensation agreement it reached last year in Brazil -- worth around $31 billion -- provides a resolution. However, a majority of the 620,000 claimants, including 46 municipalities, argue that they are not sufficiently covered by the deal and are instead seeking around £35 billion ($49 billion) in damages. Krenak said the claimants will at a potential future hearing present "visual evidence, photos and videos of what was done, what caused it, and the damage it is causing to this day". The city of Mariana, one of the areas hardest hit by the disaster, is seeking 28 billion Brazilian real ($5 billion) in compensation. "Our hope is that here in London, the municipality will be heard because, in Brazil, we were not heard," Mayor of Mariana, Juliano Duarte, told AFP. Duarte said he believes the British legal system will hold BHP accountable, which could pressure the company to negotiate directly with the claimants. He said the municipality is "open" to negotiation but "will not accept crumbs like those that were offered in Brazil".
France 24
38 minutes ago
- France 24
US hiring beats expectations in June despite tariff worries
Job growth came in at 147,000 last month, rising from a 144,000 figure in May -- which was also revised upwards -- said the Department of Labor. The unemployment rate ticked down from 4.2 percent to 4.1 percent, and wage gains decelerated to 0.2 percent, the report added. The world's biggest economy has fared relatively well since the Covid-19 pandemic, with a resilient jobs market allowing consumers to keep spending. But Trump's sweeping tariffs on US trading partners, including steep rates on imports of steel, aluminum and autos, have dragged on consumer sentiment and fueled business uncertainty. That uncertainty has been accentuated by the US leader's approach of unveiling, then adjusting or halting measures -- causing firms to become cautious in investments. With a further wave of tariff hikes potentially incoming next week, analysts are monitoring for fragility in the job market and signs that companies might pull back in hiring and expansion. A consensus forecast by had expected overall job growth of 120,000. In June, the state government and health care sectors added jobs while the federal government continued shedding roles, the Labor Department said Thursday. The federal government lost 7,000 jobs and employment is down by 69,000 since reaching a recent peak in January, the report added. But salary growth appears to be cooling, from a 0.4 percent month-on-month increase in May to 0.2 percent in June. From a year ago, wage gains were up 3.7 percent, easing from the prior month as well. But the figures will bring relief to observers worried after data from payroll firm ADP sparked alarm Wednesday, as it reported that the private sector unexpectedly shed jobs. It is not uncommon for the ADP report to diverge from official figures, but analysts believe it can help understand the longer-term trajectory of the labor market. ADP noted Wednesday that although layoffs were rare, there remains a hesitancy to hire and replace departing workers. For now, a solid labor market is likely to give the US central bank some room to hold interest rates steady for longer as policymakers observe the effects of Trump's tariffs over the summer -- and whether they will fuel broad inflation. If the labor market weakened too quickly, the Federal Reserve could be inclined to lower rates sooner to boost the economy, even if inflation were not progressing downwards as swiftly as hoped.
Euronews
an hour ago
- Euronews
US contractors claim colleagues fired at Palestinians seeking aid
American contractors tasked with guarding aid distribution sites in Gaza have been using live ammunition, stun grenades and pepper spray on Palestinians seeking aid, two US contractors have claimed in comments given to the Associated Press (AP) on condition of anonymity. The contractors, employed by UG Solution, an American subcontractor in charge of hiring security personnel at the Gaza Humanitarian Foundation (GHF) distribution sites, provided the AP with testimonies, videos, internal reports and text messages. The footage has been authenticated by the AP, who geolocated it using aerial imagery and which has been checked by regional experts. It shows Palestinians squeezed together between metal gates, ducking at the sound of gunfire and moving away from the smoke from stun grenades. The contractors claimed that live bullets, stun grenades and pepper spray are used at nearly every distribution site in Gaza, even if there was no security threat. One of them said bullets were fired regularly in all directions, including towards aid seekers. A photo shared by one of the contractors shows a woman lying on a donkey cart after reportedly being hit in the head by part of a stun grenade. In one of the videos, an American security contractor can be heard saying he arranged to bring in an Israeli tank as a "show of force" to disperse nearby Palestinians. "But I told them to hold there. I don't want this to be too aggressive," he added. In another video, contractors can be seen standing on top of a mound of earth and after a round of gunfire, voices off-screen can be heard cheering and saying "I think you hit one" and "Hell yeah, boy!" The contractor who filmed the video told the AP the other contractors initially started shooting in an effort to disperse the crowd, but then reportedly continued firing in the direction of Palestinians who had collected their aid and were leaving the site. While the video does not show who was shooting or who was shot at, the contractor claimed that he witnessed other contractors firing at Palestinians about 55 metres away and that he saw a man fall to the ground. The two contractors that came forward said they did so because they were disturbed at what they saw unfold and considered these practices "dangerous" and "irresponsible." "There are innocent people being hurt. Badly. Needlessly," one of the contractors said. During a single aid distribution in June, 37 stun grenades, 22 rubber-and-smoke "scat shall" projectiles and 60 cans of pepper spray were used by contractors, internal communications revealed. Controversy surrounding the Gaza Humanitarian Foundation The Gaza Humantarian Foundation (GHF) is a US- and Israeli-backed aid organisation. The foundation has been the subject of almost continuous controversy even before it began aid distribution, when its founding director, Jake Wood, resigned, citing concerns about the organisation's impartiality and effectiveness. Israel launched a widespread blockade on aid into Gaza in March, which ensured that no food, water, and medicine could enter the Strip. They claimed the militant group Hamas had been stealing aid that was transported under the pre-existing system coordinated by the United Nations. The UN and other aid organisations denied that Hamas had been siphoning off aid and refused to work with the GHF, arguing that it breaches fundamental humanitarian principles. They also emphasised that, unlike the GHF, their system of aid distribution did not involve armed guards. International journalists are forbidden by Israel from reporting inside Gaza, therefore the accounts of the two US contractors provide a rare insight into the aid distribution process in Gaza. The testimonies also stand in stark contrast with what the GHF and its subcontractors have claimed so far. "Our recruiting and training process is extensive," UG Solution claimed, adding that their application process included thorough "screening by experts, reference checks, background checks and weapons proficiency." However, the two anonymous contractors claimed that the security personnel hired were often unqualified, unvetted, heavily armed and seemed to have carte blanche to do as they pleased. They also admitted that it had been an extremely rushed rollout. According to the contractors, some men had only been recruited a few days prior via email, many without combat experience or proper training. The contractors said none of the men in Israel working for UG Solutions had been tested to see if they could handle a gun safely and the rushed rollout meant not everyone was able to "zero" their weapon, meaning personally adjusting it to ensure proper aim. Military experts warn that not zeroing a weapon poses a significant risk. Another subcontractor in charge of logistics, Safe Reach Solutions (SRS), allegedly did not provide the staff with rules of engagement until three days after aid distribution started, the contractors claimed. The draft rules permitted the use of non-lethal weapons in extreme situations on unarmed individuals who are physically violent, and for deadly force to be used, but only if absolutely necessary. SRS acknowledged that it's dealing with large, hungry populations but said the environment is secure, controlled and they ensure people can access aid safely. However, an SRS internal report found that aid seekers were injured during a third of the distributions that took place in a two-week period in June. Since the launch of the GHF, Palestinians have frequently come forward claiming that Israeli troops opened fire at crowds crossing military zones to reach the distribution points. These accounts have been supported by local hospital sources, who reported that hundreds of people have been killed or wounded at or near distribution sites. The Israeli military says it has only fired warning shots in an effort to control the crowd and has denied it fired directly at aid seekers. SRS also claimed Hamas had threatened both aid workers and civilians receiving aid but one of the US contractors said he had personally never been threatened by the militant group. Meanwhile, at least 82 Palestinians were killed overnight into Thursday in Israeli air strikes and shootings, Gaza's Health Ministry said. That figure includes 38 people who were waiting for humanitarian aid. Five of those were killed outside sites linked to the GHF and 33 others were killed waiting for aid trucks in other locations across the Strip.
