Latest news with #DepartmentofCommerce
News18
an hour ago
- Business
- News18
US announces 25 pc tariff plus penalty on India from Aug 1
Agency: Washington, Jul 30 (PTI) US President Donald Trump on Wednesday announced the imposition of a 25 per cent tariff on all goods coming from India starting August 1, plus an unspecified penalty for buying military equipment and crude oil from Russia. The surprise announcement came a day after Indian officials said that a US trade team would visit from August 25 to negotiate a trade deal. The announcement is being seen a pressure tactics to get New Delhi to agree to demands made by the US, which has in recent days got favourable trade deals with major partners like Japan, the UK and the European Union. In a post on social media handle, Trump termed India's trade policies as 'most strenuous and obnoxious". 'All things not good! India will therefore be paying a tariff of 25 per cent, plus a penalty for the above, starting on August first," Trump said.. The penalty because India has made large purchases of oil and military equipment from Russia. India's import of crude oil from Russia has risen from 0.2 per cent of total purchases before the Russia-Ukraine war to 35-40 per cent. New Delhi is the largest buyer of Russian oil after China. He said India have always purchased significant amount of military equipment and energy products from Russia at a time when everyone wants Russia to stop the 'killing" in Ukraine. New Delhi did not immediately react to the tariff announcement but sources indicated officials were in a huddle to work out the implications. It was, however, not clear if the 25 per cent duty will be imposed in addition to the existing 10 per cent baseline tariff. The 10 per cent tariff, which currently applies to most Indian goods barring a few, was announced by Trump on all countries on April 2. Also, the exact quantum of the penalty is unclear. Among India's major trade competitors, the US has imposed lower tariffs on Vietnam (20 per cent) and Malaysia (25 per cent), but higher on Bangladesh (35 per cent) and Thailand (36 per cent). On April 2 this year, Trump announced high reciprocal tariffs on number of countries including India (26 per cent). The implementation of high tariffs was immediately suspended for 90 days till July 9 and later until August 1, as America is negotiating trade deals with various countries. However, the baseline tariff of 10 per cent remains. In addition to this, the US has imposed 50 per cent duty on steel and aluminium and the 25 per cent on auto sector. Meanwhile, negotiations for the proposed bilateral trade agreement are on as a team from the US is visiting New Delhi on August 25 for the sixth round of talks. The top officials of the countries concluded the fifth round recently in Washington. India's chief negotiator and special secretary in the Department of Commerce Rajesh Agrawal and Assistant US Trade Representative for South and Central Asia Brendan Lynch held the deliberations. During 2021-25, the US was India's largest trading partner. The US accounts for about 18 per cent of India's total goods exports, 6.22 per cent in imports, and 10.73 per cent in bilateral trade. With America, India had a trade surplus (the difference between imports and exports) of USD 35.32 billion in goods in 2023-24. It was USD 41 billion in 2024-25 and USD 27.7 billion in 2022-23. In 2024-25, bilateral trade between India and the US reached USD 186 billion. India exported USD 86.5 billion in goods while importing USD 45.3 billion. In services, India exported an estimated USD 28.7 billion and imported USD 25.5 billion, adding a USD 3.2 billion surplus. Altogether, India ran a total trade surplus of about USD 44.4 billion with the US. top videos View all In 2024, India's main exports to the US included drug formulations and biologicals (USD 8.1 billion), telecom instruments (USD 6.5 billion), precious and semi-precious stones (USD 5.3 billion), petroleum products (USD 4.1 billion), vehicle and auto components (USD 2.8 billion), gold and other precious metal jewellery (USD 3.2 billion), ready-made garments of cotton, including accessories (USD 2.8 billion), and products of iron and steel (USD 2.7 billion). Imports included crude oil (USD 4.5 billion), petroleum products (USD 3.6 billion), coal, coke (USD 3.4 billion), cut and polished diamonds (USD 2.6 billion), electric machinery (USD 1.4 billion), aircraft, spacecraft and parts (USD 1.3 billion), and gold (USD 1.3 billion). PTI RR ZH MPB CS ANZ RR MR (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: July 30, 2025, 20:00 IST News agency-feeds US announces 25 pc tariff plus penalty on India from Aug 1 Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
4 hours ago
- Business
- Time of India
Last-ditch efforts on to avoid higher US tariffs as India pushes for trade pact: Sources
With the deadline of August 1 approaching fast, the last-ditch efforts are on to iron out differences for an interim trade deal between India and the US, sources said. August 1 marks the end of the suspension period of tariffs imposed by US President Donald Trump on dozens of countries, including India (26 per cent). However, the baseline tariff of 10 per cent remains. Explore courses from Top Institutes in Please select course: Select a Course Category Design Thinking Leadership Data Science Healthcare Project Management Product Management Digital Marketing Finance MBA Public Policy Management Others CXO Cybersecurity Data Science healthcare Skills you'll gain: Duration: 22 Weeks IIM Indore CERT-IIMI DTAI Async India Starts on undefined Get Details Skills you'll gain: Duration: 22 Weeks IIM Indore CERT-IIMI DTAI Async India Starts on undefined Get Details Sources also said that in case the talks for an interim trade deal get extended beyond August 1, the pact would supersede the existing duty structure on the country. "Talks are on," one of the sources said. Meanwhile, the US team is visiting India from August 25 for the next round of negotiations for the proposed bilateral trade agreement (BTA) between the two countries. Live Events India and the US teams concluded the fifth round of talks for the agreement last week in Washington. Issues including customs and trade facilitation were discussed during that round. India's chief negotiator and special secretary in the Department of Commerce Rajesh Agrawal and Assistant US Trade Representative for South and Central Asia Brendan Lynch held the deliberations. US President Donald Trump has said the trade deal with India is not finalised, as he stressed that India imposes more tariffs than almost any other country. Trump spoke to reporters on Tuesday on Air Force One on his way back to Washington from Scotland and was asked about the trade deal with India. "No, it's not," Trump said when asked if the deal with India is finalised. He was also asked about reports that India is preparing to face higher US tariffs between 20-25 per cent, to which he replied, "I think so." On April 2 this year, Trump announced high reciprocal tariffs. The implementation of high tariffs was immediately suspended for 90 days till July 9 and later until August 1, as America is negotiating trade deals with various countries. India has hardened its position on the US demand for duty concessions on agri and dairy products. New Delhi has, so far, not given any duty concessions to any of its trading partners in a free trade agreement in the dairy sector. India is seeking the removal of the 26 per cent additional tariff. It is also looking at the easing of tariffs on steel and aluminium (50 per cent) and the auto sector (25 per cent). These issues are an important part of the trade pact negotiations. Against these, India has reserved its right under the WTO (World Trade Organization) norms to impose retaliatory duties. The country is also seeking duty concessions for labour-intensive sectors, such as textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas, in the proposed trade pact. On the other hand, the US wants duty concessions on certain industrial goods, automobiles, especially electric vehicles, wines, petrochemical products, agri goods, dairy items, apples, tree nuts, and genetically modified crops. The two countries are looking to conclude talks for the first tranche of the proposed bilateral trade agreement (BTA) by fall (September-October) this year. Before that, they are looking for an interim trade pact. India's merchandise exports to the US rose 22.8 per cent to USD 25.51 billion in the April-June quarter this financial year, while imports rose 11.68 per cent to USD 12.86 billion.
Bloomberg
7 hours ago
- Business
- Bloomberg
Andritz Settles US Sanctions Probe on Russian Machinery Exports
Andritz AG settled a US probe into sanctions violations after the Austrian engineering firm failed to seek a license for some exports to Russia. The US unit of Andritz will pay a $1.58 million civil penalty for the delivery of refiner plates used in paper pulp machines from May 2023 to February 2024, according to an order published by the US Department of Commerce.
Hans India
2 days ago
- Business
- Hans India
India's leather, footwear exports to UK likely to double to $1 billion: Piyush Goyal
India's leather and footwear exports to the UK are expected to nearly double from $494 million in 2024 to $1 billion within three years following the signing of the bilateral free trade agreement, Commerce and Industry Minister Piyush Goyal said on Monday. The agreement also simplifies customs procedures, aligns technical standards, and ensures protection of Indian Geographical Indications (GI) such as Kolhapuri footwear and Mojari, allowing Indian products to gain enhanced visibility in the UK's $8.7 billion leather and footwear market, the minister observed at a meeting with exporters here. Key manufacturing hubs across the country are set to benefit significantly, with a projected surge in demand expected to generate thousands of new jobs, particularly among MSMEs, artisans, women entrepreneurs, and youth-led enterprises, he added. The India-UK Comprehensive Economic and Trade Agreement (CETA) eliminates the UK's import duties for Indian products, which till now have ranged from 2 per cent to 8 per cent for leather goods, 4.5 per cent for leather footwear, and 11.9 per cent for non-leather footwear. This levels the playing field for Indian exporters against competitors such as Bangladesh, Cambodia, and Vietnam, who have enjoyed preferential access to the UK market. By facilitating duty-free access and regulatory ease, the India-UK CETA enhances pricing power and global visibility for Indian manufacturers, especially in high-quality leather and fashion products that are in strong demand in the UK. Government initiatives like the Indian Footwear and Leather Development Programme (IFLDP), with an outlay of Rs 1,700 crore, and the proposed Focus Product Scheme for the footwear and leather sector support capacity expansion, technology upgrades, creation of mega clusters and design studios, and international brand promotion, the minister pointed out. The Department of Commerce held an industry interaction with stakeholders from the textiles, leather and footwear sector to discuss the opportunities created by India-UK Comprehensive Economic and Trade Agreement (CETA). Goyal said that the agreement is a transformative opportunity for India's textiles, leather, and footwear industries. He noted that the CETA has also positioned India's textile sector for a significant surge in exports. The agreement provides Indian textile & clothing products with duty-free access to the UK market and addresses the duty disadvantages (of up to 12 per cent) that the Indian textiles sector faced in the UK vis-a-vis some key competing countries like Bangladesh, Cambodia, and Pakistan. The zero-duty market access will benefit segments such as ready-made garments, home textiles, carpets, and handicrafts and set the tone for a sharp surge in exports. The agreement will help in increasing the demand for Indian textiles and benefit all major textile clusters such as Tirupur, Jaipur, Surat, Ludhiana, Panipat, Bhadohi, and Moradabad. The CETA is expected to have a positive impact across the textiles value chain, benefiting various stakeholders and boosting employment generation in this labour-intensive sector. The representatives of various Export Promotion Councils and Industry associations welcomed the India–UK CETA and mentioned that the duty-free access will make Indian products more competitive and provide a level playing field to Indian textile exporters. During the interactions, the need for follow-up steps to be taken by the textiles industry to effectively utilise the benefits provided by the FTA was also emphasised.
Engadget
2 days ago
- Business
- Engadget
Trump temporarily drops export controls to smooth negotiations with China
After previously saying that the US would block exports of key AI chips to China, Donald Trump's administration may have backtracked. The US will now temporarily block restriction on exports of chips and other technology to China, the Financial Times reported. The aim is to help Trump book a meeting with China President Xi Jinping later this year in order to strike a trade deal, according to people familiar with the matter. Export controls are dictated by the US Commerce Department, which was reportedly told to avoid tough moves on China, according to eight people including current and former US officials. Trump is said to have wanted to avoid angering Xi due to the risk of China retaliating further on the export of crucial rare earths and magnets. Last week, NVIDIA said it would be able to resume selling key AI chips to China after being blocked earlier by the Department of Commerce. "The US government has assured NVIDIA that licenses will be granted and NVIDIA hopes to start deliveries soon," the company stated in a blog post. Today's news of frozen export controls effectively backs up that statement. However, 20 people including security experts and former US officials, including from Trump's previous administration, wrote the Department of Commerce saying it was a bad idea to give China access to advanced AI chips. "This move represents a strategic mis-step that endangers the United States' economic and military edge in artificial intelligence," they said in a letter. "By supplying China with these chips, we are fueling the very infrastructure that will be used to modernize and expand the Chinese military."
