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Chinese tariff on canola seed comes into force as farmers hope for resolution
REGINA — A Chinese tariff of nearly 76 per cent on Canadian canola seed is set to come into force today. The duty, announced Tuesday, has already caused the price of one of Canada's most valuable crops to fall, wiping out millions of dollars in its value. It comes a year after China launched an anti-dumping investigation into Canadian canola. The investigation was in response to Canada's 100 per cent tariff on Chinese electric vehicles, and the two countries have since hit each other with various levies. Canola farmers and Ottawa have rejected claims of dumping, arguing exporters have followed rules-based trade. Farmers and Prairie premiers have called on the federal government to resolve the issue by speaking constructively with Chinese officials. This report by The Canadian Press was first published Aug. 14, 2025. Jeremy Simes, The Canadian Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Bessent says unusual Nvidia, AMD revenue-sharing deal could be a ‘model' for other industries
President Donald Trump surprised markets on Monday with a deal that was widely characterized as unusual: Nvidia and AMD will contribute 15% of their chip sales in China to the U.S. government. Treasury Secretary Scott Bessent has leaned into this new export revenue-sharing deal, saying it could serve as a blueprint for other industries. In a TV interview with Bloomberg Surveillance, Bessent praised Trump's 'unique solution.' 'I think we could see it in other industries over time,' Bessent said. 'Right now, this is unique, but now that we have the model and the beta test, why not expand it?' The historic agreement essentially allows Nvidia to export its H20 accelerator chips and AMD its MI308 processors—designed specifically for compliance with U.S. export controls—to Chinese buyers who are hungry for advanced AI technology. Semiconductor chips, on the one hand, and rare earth materials, on the other, have been America's and China's respective leverage points as the countries seek a new trade understanding. Bessent claimed in the interview the revenue collected from the chip sales would go directly to paying down the national debt, and hinted at the possibility of channeling additional funds to taxpayers if the program proves successful. Hotly debated deal The deal itself, however, has raised considerable debate. For years, Washington's approach to export controls centered on outright bans and restriction of certain dual-use or national-security-sensitive goods. The Trump administration had previously halted all sales of advanced chips to China, citing risks of aiding Chinese military and AI efforts. But the new model seeks to find a middle ground: It enables sales while capturing U.S. value and providing leverage in ongoing negotiations with Beijing. Bessent, a former hedge fund manager and George Soros protégé who became one of Trump's closest Wall Street allies, has long argued for a strategic, results-oriented approach to American trade. His idea is U.S. companies can continue to compete globally without relinquishing leverage—or security. The arrangement itself is unusual. It is not a tax in the traditional legislative sense, but rather a condition attached to the export license—a point that has sparked controversy among legal experts. 'It's bizarre in many respects and pretty troubling since Congress didn't have anything to say about this,' Gary Hufbauer of the Peterson Institute for International Economics told The Hill. He noted direct revenue-sharing agreements negotiated by the president and individual firms are without precedent in U.S. trade history. For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. This story was originally featured on
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Trump's 50% Tariff Threatens India's Manufacturing Ambitions
(Bloomberg) -- India's largest shoemaker Farida Group had already staked out the land — a 150-acre plot in southern Tamil Nadu — for a sprawling new export facility. Then came the blow from Washington: President Donald Trump announced he was doubling tariffs on Indian exports to 50%. For Farida, which supplies brands like Cole Haan and Clarks and depends on the US for about 60% of its business, the impact was immediate. New orders stopped. The 10 billion rupee ($114 million) project froze. The US-Canadian Road Safety Gap Is Getting Wider Sunseeking Germans Face Swiss Backlash Over Alpine Holiday Congestion To Head Off Severe Storm Surges, Nova Scotia Invests in 'Living Shorelines' Five Years After Black Lives Matter, Brussels' Colonial Statues Remain For Homeless Cyclists, Bikes Bring an Escape From the Streets 'With 25% tariffs, you can still work, you can give some discount, negotiate with the buyer and make some adjustments in your profits,' Rafeeque Ahmed, the company's chairman, said in an interview. 'At 50%, you don't have anything.' Farida is hardly alone. Trump's move would give India the highest tariff rate in Asia, threatening a manufacturing sector that Prime Minister Narendra Modi has spent a decade trying to build to take on the likes of China. The 'Make in India' campaign was supposed to lift manufacturing to 25% of the economy. Last year, it stood at just 13% — lower than the 16% in 2015, according to World Bank data. The last few years did offer glimmers of the future Modi had envisioned. Apple Inc. scaled up iPhone assembly in India, making the country the second-largest smartphone producer after China. Pharmaceuticals and green tech have also gained ground. The US — whose policies and actions accelerated companies' adoption of a 'China Plus One' strategy to diversify supply chains — is now India's biggest export market and one of its top sources of foreign investment. That progress is suddenly vulnerable. While the tariff hike spares smartphones and pharmaceuticals for now, it puts the rest of India's $87 billion in US-bound exports on the line. 'Forget China Plus One right now. Companies are thinking India Plus One,' Ahmed said. 'They are making plans to move out of India.' India's Ministry of Commerce and Industry didn't immediately respond to a request for comment. Trump says the tariff hike is punishment for India's purchase of discounted oil from Russia, which he argues helps fund President Vladimir Putin's war on Ukraine. But India was the only major economy to be hit with such 'secondary tariffs,' even though China is the largest overall buyer of Moscow's crude. If the 50% rate holds, Bloomberg Economics estimates US-bound exports from India could fall by 60% and put nearly 1% of gross domestic product at risk. Without exemptions for pharmaceuticals and electronics, the decline could reach 80%. Even the earlier 25% rate — already higher than in Vietnam, Malaysia or Bangladesh, was enough to threaten a 30% drop in exports. For comparison, Chinese goods face about a 30% US tariff. 'In addition to the economic challenge, politically it's difficult for Prime Minister Modi that India now pays a higher blanket rate than China,' said Alexander Slater, head of the India practice at consulting firm Capstone. China is pressing on other fronts as well. Beijing wants to limit tech transfers and equipment exports to India and Southeast Asia, aiming to deter companies from relocating production, Bloomberg previously reported. China's rare earth curbs also hit Indian automakers earlier this year. At the same time, Trump's tariffs have opened the door for closer India-China ties. Direct flights may resume as soon as next month, and Beijing has eased restrictions on urea exports to India. The two sides are discussing resuming border trade of locally made goods after more than five years, Bloomberg reported on Thursday. What Bloomberg Economics Says... 'In a no-deal scenario, we estimate a drag of up to 1.5 percentage points on long-term potential GDP growth, relative to our optimistic outlook of 9% by 2030. The impact is likely to stem from weaker sentiment, lower investments, falling exports and a setback to India's manufacturing ambitions.' — Chetna Kumar. For the full analysis, click here. On the factory floor, anxiety over the US tariff is palpable. Ajay Sahai, chief executive officer of the Federation of Indian Export Organisations, said exporters could see demand fall 20% in the short term. The timing couldn't be worse: summer 2026 orders are being placed right now, but with tariffs sitting at 50%, buyers are balking. 'I've been getting 80 to 90 calls every day concerning these issues from exporters seeking solutions and ways out,' he said. 'It's difficult to do business in such a tariff environment.' Some factories are slashing prices to hold on to customers. The only way to retain buyers is by giving huge discounts, said Sudhir Sekhri, managing director at apparel maker Trend Setters Group. Spring and summer orders account for roughly 65% of his firm's revenue. In Mumbai, Sharad Kumar Saraf, managing director of Technocraft Group, which produces scaffolding, textiles and other goods, is running the numbers to reduce costs for buyers. About a third of its sales are headed for the US. 'Additional tariffs is unwarranted and uncalled for and will impact our trade severely,' he said. There's still the possibility for a reprieve. US and Indian officials are continuing trade talks, with the hopes of landing the first tranche of a bilateral trade deal this fall that could dial back tariffs. Trump will also meet Putin in Alaska this week to discuss Ukraine — any breakthrough there could strengthen the case for dropping America's oil-related levies. But time is not on India's side. The longer the uncertainty drags on, the more companies will start looking elsewhere. India's share in many of these product categories is small and US brands can shift their supply chains quickly if they decide to, said P Senthilkumar, partner at Vector Consulting Group. The tariff threat feels personal for Farida Group, whose shoe plants employ about 23,000 people, with over half producing for the US. Every paused shipment or canceled order brings painful choices — whether to halt or slow production, or let go of staff who have spent years honing their craft. 'You can't take business decisions in such uncertainty,' said Ahmed. 'What will happen to workers? Shall I send them back? They have been with me for years, they are skilled workers, I can't just send them back.' 'Workers would be one of the biggest sufferers,' he added. --With assistance from Yasufumi Saito. (Updates with details of India-China talks in 13th paragraph) Americans Are Getting Priced Out of Homeownership at Record Rates Dubai's Housing Boom Is Stoking Fears of Another Crash Why It's Actually a Good Time to Buy a House, According to a Zillow Economist Bessent on Tariffs, Deficits and Embracing Trump's Economic Plan The Electric Pickup Truck Boom Turned Into a Big Bust ©2025 Bloomberg L.P.
