Latest news with #AjaySahai
Time of India
11 hours ago
- Business
- Time of India
India-US trade deal: Trump's penalty creates complications for Indian exporters
Expecting favourable terms for Indian goods, M Rafeeque Ahmed, head of the Farida Group—one of India's top leather and footwear exporters—was preparing to travel to the US to secure new orders. However, he is now reconsidering his trip. "The announcement is shocking and there is a lot of uncertainty. With a five-percentage point disadvantage compared to Vietnam, things are not looking very good. We have to see what we can do as there may be some cancellations and price renegotiation," he told TOI. Explore courses from Top Institutes in Please select course: Select a Course Category Technology MCA Digital Marketing Data Science Leadership Degree Others others Data Analytics Healthcare Product Management Design Thinking Project Management Data Science MBA Management Finance Cybersecurity CXO Public Policy healthcare Skills you'll gain: Duration: 12 Weeks MIT xPRO CERT-MIT XPRO Building AI Prod India Starts on undefined Get Details For Indian exporters it is the proposed penalty, currently unspecified, which is complicating matters as buyers would want complete certainty before placing orders. "Without clarity on the penalty, exporters and importers can't assess costs or plan how to manage tariff impact , disrupting supply chains and pricing," said Fieo DG Ajay Sahai. In fact, some businesses were willing to reduce their margins further to retain their old buyers. Textiles, gems & jewellery, carpets and seafood are among sector that may be are willing to make concessions for old buyers. "In cotton garments , India's cost disadvantage vis-a-vis our major competitors Bangladesh and Vietnam is relatively low (3-4%) whereas it is higher (11-13%) in case of synthetic garments. A moderate tariff reduction from 26% (announced in April) to 15% could have helped India gain competitive advantage over Bangladesh and Vietnam in the US market. Even at 25%, we can be competitive vis-a-vis Bangladesh in cotton garments. But, the additional condition of penalty has upset the apple cart by pushing the trade possibilities with the USA into the zone of uncertainty," said AEPC secretary general Mithileshwar Thakur. Live Events The ongoing talks for the trade deal with the US are, however, keeping hopes alive with businesses pushing govt to finalise the agreement at the earliest. "With US being one of the key export destinations, this will severely impact the sectors like gems and jewellery that are heavily dependent on exports and are one of the biggest contributors to economy. We expect trade activities to remain muted with US," said Kama Jewelry MD Colin Shah. (With TOI inputs)
Time of India
a day ago
- Business
- Time of India
India-US trade deal: Unspecified Trump's penalty creates complications for business
NEW DELHI: Anticipating a good deal for Indian goods, M Rafeeque Ahmed, who leads the Farida Group, one of the largest leather and footwear exporters in the country, was headed to the US, hoping to lock in some orders. Now, he is reviewing his plans. "The announcement is shocking and there is a lot of uncertainty. With a five-percentage point disadvantage compared to Vietnam, things are not looking very good. We have to see what we can do as there may be some cancellations and price renegotiation," he told TOI. For Indian exporters it is the proposed penalty, currently unspecified, which is complicating matters as buyers would want complete certainty before placing orders. "Without clarity on the penalty, exporters and importers can't assess costs or plan how to manage tariff impact, disrupting supply chains and pricing," said Fieo DG Ajay Sahai. In fact, some businesses were willing to reduce their margins further to retain their old buyers. Textiles, gems & jewellery, carpets and seafood are among sector that may be are willing to make concessions for old buyers. "In cotton garments, India's cost disadvantage vis-a-vis our major competitors Bangladesh and Vietnam is relatively low (3-4%) whereas it is higher (11-13%) in case of synthetic garments. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Senior Living Considerations for Container Housing in 2025 southermore Search Now Undo A moderate tariff reduction from 26% (announced in April) to 15% could have helped India gain competitive advantage over Bangladesh and Vietnam in the US market. Even at 25%, we can be competitive vis-a-vis Bangladesh in cotton garments. But, the additional condition of penalty has upset the apple cart by pushing the trade possibilities with the USA into the zone of uncertainty," said AEPC secretary general Mithileshwar Thakur. The ongoing talks for the trade deal with the US are, however, keeping hopes alive with businesses pushing govt to finalise the agreement at the earliest. "With US being one of the key export destinations, this will severely impact the sectors like gems and jewellery that are heavily dependent on exports and are one of the biggest contributors to economy. We expect trade activities to remain muted with US," said Kama Jewelry MD Colin Shah. Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
Time of India
a day ago
- Business
- Time of India
Trump's tariff penalty fuels uncertainty for Indian exporters, puts them behind Vietnam, Indonesia
The latest tariff announcement by US President Donald Trump has added to uncertainty for Indian exporters who also insist that New Delhi should not give into Washington's arm twisting. These tariffs set Indian exporters at a disadvantage against competitors such as Vietnam and Indonesia, where the tariffs are 20%. Explore courses from Top Institutes in Please select course: Select a Course Category Operations Management Degree Management PGDM Leadership Digital Marketing MBA healthcare Data Science MCA Product Management Finance Technology Others Healthcare others CXO Project Management Design Thinking Data Science Artificial Intelligence Data Analytics Public Policy Cybersecurity Skills you'll gain: Quality Management & Lean Six Sigma Analytical Tools Supply Chain Management & Strategies Service Operations Management Duration: 10 Months IIM Lucknow IIML Executive Programme in Strategic Operations Management & Supply Chain Analytics Starts on Jan 27, 2024 Get Details However, it is the added threat of a penalty has created uncertainty, which will make absorbing the differential duty more difficult. "This is a negotiating posture of US for a unilateral trade deal which we should resist and give precedence to our national interest at any cost. While US market is important, the new free trade agreements with complementary economies will help us in export diversification and we also have a very vibrant domestic market," said Ajay Sahai, director general, Federation of Indian Export Organisations.
Los Angeles Times
a day ago
- Business
- Los Angeles Times
Trump announces 25% tariff on India and unspecified penalties for buying Russian oil
WASHINGTON — President Trump said Wednesday that he will impose a 25% tariff on goods from India, plus an additional import tax because of India's purchasing of Russian oil. India 'is our friend,' Trump said on his Truth Social platform, but its tariffs 'are far too high' on U.S. products. The Republican president added that India buys military equipment and oil from Russia, which he said has enabled the war in Ukraine. As a result, he intends to charge an additional 'penalty' starting on Friday as part of the launch of his administration's revised tariffs on multiple countries. The new tariffs could put India at a disadvantage in the U.S. market relative to Vietnam, Bangladesh and, possibly, China, said Ajay Sahai, director general of the Federation of Indian Export Organisations. 'We are back to square one as Trump hasn't spelled out what the penalties would be in addition to the tariff,' Sahai said. 'The demand for Indian goods is bound to be hit.' The announcement comes after a slew of negotiated trade frameworks with the European Union, Japan, the Philippines and Indonesia — all of which Trump said would open markets for American goods while enabling the U.S. to raise tax rates on imports. The president views tariff revenues as a way to help offset the budget deficit increases tied to his recent income tax cuts and generate more domestic factory jobs. While Trump has effectively wielded tariffs as a cudgel to reset the terms of trade, the economic impact is uncertain as most economists expect a slowdown in U.S. growth and greater inflationary pressures as some of the costs of the taxes are passed along to domestic businesses and consumers. There is also the possibility of more tariffs coming on trade partners with Russia as well as on pharmaceutical drugs and computer chips. Kevin Hassett, director of the White House National Economic Council, told reporter Wednesday that Trump and U.S. Trade Representative Jamieson Greer would announce the Russia-related tariff rates on India at a later date. Trump's approach of putting a 15% tariff on America's long-standing allies in the EU is also generating pushback, possibly causing European partners as well as Canada to seek alternatives to U.S. leadership on the world stage. French President Emmanuel Macron said Wednesday in the aftermath of the trade framework that Europe 'does not see itself sufficiently' as a global power, saying in a cabinet meeting that negotiations with the U.S. will continue as the agreement gets formalized. 'To be free, you have to be feared,' Macron said. 'We have not been feared enough. There is a greater urgency than ever to accelerate the European agenda for sovereignty and competitiveness.' Washington has long sought to develop a deeper partnership with New Delhi, which is seen as a bulwark against China. Indian Prime Minister Narendra Modi has established a good working relationship with Trump, and the two leaders are likely to further boost cooperation between their countries. The Census Bureau reported that the U.S. ran a $45.8 billion trade imbalance in goods with India last year, meaning it imported more than it exported. At a population exceeding 1.4 billion people, India is the world's largest country and a possible geopolitical counterbalance to China. India and Russia have close relations, and New Delhi has not supported Western sanctions on Moscow over its war in Ukraine. The new tariffs on India could complicate its goal of doubling bilateral trade with the U.S. to $500 billion by 2030. The two countries have had five rounds of negotiations for a bilateral trade agreement. While U.S. has been seeking greater market access and zero tariff on almost all its exports, India has expressed reservations on throwing open sectors such as agriculture and dairy, which employ a bulk of the country's population for livelihood, Indian officials said. When Trump in February met with Modi, the U.S. president said that India would start buying American oil and natural gas. Trump discussed his policies on trade and tariffs with reporters accompanying him Tuesday on the flight home following a five-day visit to Scotland. He declined to comment then when asked about reports that India was bracing for a U.S. tariff rate of at least 25%, saying, 'We're going to see.' Trump also said the outlines of a trade framework with India had not yet been finalized. Once back at the White House on Tuesday, Trump indicated that there were no plans to announce new tariff rates on Wednesday, a claim that turned out to be inaccurate. Boak and Roy write for the Associated Press. Roy reported from New Delhi. AP writers Samuel Petrequin in Paris and Darlene Superville contributed to this report.
North Wales Chronicle
a day ago
- Business
- North Wales Chronicle
Trump announces 25% tariff on India plus penalties for buying Russian energy
The US president said on Wednesday that India 'is our friend' but its tariffs 'are far too high' on US goods. He added that India buys military equipment and oil from Russia, which Mr Trump said has enabled the war in Ukraine. As a result, he intends to charge an additional 'penalty' starting on Friday as part of revised tariffs on multiple countries. The new tariffs could put India at a disadvantage in the US market relative to Vietnam, Bangladesh and, possibly, China, said Ajay Sahai, director general of the Federation of Indian Export Organisations. 'We are back to square one as Trump hasn't spelled out what the penalties would be in addition to the tariff,' he added. 'The demand for Indian goods is bound to be hit.' The announcement came after a series of negotiated trade frameworks with the European Union, Japan, the Philippines and Indonesia — all of which Mr Trump said would open markets for American goods while enabling the US to raise tax rates on imports. The president views tariff revenues as a way to help offset the budget deficit increases tied to his recent income tax cuts and generate more domestic factory jobs. While he has effectively wielded tariffs as a cudgel to reset the terms of trade, the economic impact is uncertain as most economists expect a slowdown in US growth and greater inflationary pressures as the costs of the taxes are passed along to domestic businesses and consumers. His approach of putting a 15% tariff on America's longstanding allies in the EU is also generating pushback — possibly causing European partners as well as Canada to seek alternatives to US leadership on the world stage. Washington has long sought to develop a deeper partnership with New Delhi. Indian Prime Minister Narendra Modi has established a good working relationship with Mr Trump, and the two leaders are likely to further boost co-operation between their countries. At a population exceeding 1.4 billion people, India is the world's largest country and a possible geopolitical counterbalance to China. India and Russia have close relations, and New Delhi has not supported western sanctions on Moscow over its war in Ukraine. When Mr Trump met Mr Modi in February, the US president said India would start buying American oil and natural gas. He discussed his policies on trade and tariffs with reporters accompanying him on Tuesday on the flight home after a five-day visit to Scotland. He declined to comment then about reports that India was bracing for a US tariff rate of at least 25%, saying: 'We're going to see.' Mr Trump also said the outlines of a trade agreement with India had not yet been finalised.
