Latest news with #FederationofIndianExportOrganizations
Kuwait Times
a day ago
- Business
- Kuwait Times
Higher US tariffs kick in for dozens of trading partners
Trump imposes 100% tariff on semiconductor imports WASHINGTON: The United States began charging higher tariffs on goods from dozens of trading partners Thursday, in a major escalation of President Donald Trump's drive to reshape global commerce in America's favor. Shortly before the new levies kicked in, Washington separately announced it would double Indian tariffs to 50 percent and hit many semiconductor imports from around the world with a 100-percent levy. As an executive order signed last week by Trump took effect, US import duties rose from 10 percent to levels between 15 percent and 41 percent for a list of trading partners. Many imports from economies including the European Union, Japan and South Korea now face a 15-percent tariff, even with deals struck with Washington to avert steeper threatened levies. But others like India face a 25-percent duty—to be doubled in three weeks to 50 percent—while Syria, Myanmar and Laos face staggering levels at either 40 percent or 41 percent. Switzerland's government, which failed to convince Trump not to impose a stinging 39-percent tariff, was set to hold an extraordinary meeting later Thursday. Taking to his Truth Social platform just after midnight, Trump posted: 'It's midnight!!! billions of dollars in tariffs are now flowing into the United States of America!' The latest wave of 'reciprocal' duties, aimed at addressing trade practices Washington deems unfair, broadens the measures Trump has imposed since returning to the presidency. Marcelo Meza works in a Swiss watchmaker Swatch store on August 05, 2025 in Miami Beach, Florida On the eve of his latest salvo, he doubled planned duties on Indian goods to 50 percent, citing New Delhi's continued purchase of Russian oil. The new levy—up from 25 percent now—would take effect in three weeks. The Federation of Indian Export Organizations called the move a 'severe setback for Indian exports, with nearly 55 percent of our shipments to the US market directly affected.' For New Delhi, one of the main sticking points has been Washington's demand to access India's vast agricultural and dairy market. 'We will not compromise with the interests of our farmers, our dairy sector, our fishermen,' Prime Minister Narendra Modi said Thursday. Trump said Wednesday he also planned an 'approximately 100 percent tariff' on semiconductor imports, but with 'no charge' for companies investing in the United States or committed to do so. Shares in Taiwanese chip-making giant TSMC surged as Taipei said it would be exempt, but some other Asian manufacturers took a beating. Companies and industry groups warn the new levies will severely hurt smaller American businesses, while economists caution that they could fuel inflation and hit growth. With the dust settling on countries' tariff levels, at least for now, Georgetown University professor Marc Busch expects US businesses to pass along more of the bill to consumers. An earlier 90-day pause in these higher 'reciprocal' tariffs gave importers time to stock up, he said. But although the wait-and-see strategy led businesses to absorb more of the tariff burden initially, inventories are depleting and it is unlikely they will do this indefinitely, he told AFP. 'With back-to-school shopping just weeks away, this will matter politically,' said Busch, an international trade policy expert. The tariffs leave lingering questions for partners that have negotiated deals with Trump recently. Tokyo and Washington, for example, appear at odds over key details of their pact, in particular on when lower levies on Japanese cars will take place. Generally, US auto imports now face a 25-percent duty under a sector-specific order. Toyota has cut its full-year profit forecast by 14 percent because of the tariffs. Japan and the United States also appear to differ on whether the 'reciprocal' tolls of 15 percent on other Japanese goods would be on top of existing levies or—like the EU—be capped at that level. China and the United States, meanwhile, currently have a shaky truce in their standoff but that is due to expire on August 12. Chinese exports to the United States tumbled 21.7 percent last month, official data showed, while those to the European Union jumped 9.2 percent and to Southeast Asia by 16.6 percent. Trump has announced a 100 percent tariff on semiconductors from firms that do not invest in the United States—sparking volatility in Asian chipmaker shares Thursday. He did not give a timetable for the new levy, which he has repeatedly threatened in the past, to be enacted. Arisa Liu, senior semiconductor researcher at the Taiwan Institute of Economic Research, said it would impact the 'strategic direction of global semiconductor companies'. 'Since the United States is the world's largest player in AI and related high-performance computing, this will have a relatively greater impact on companies involved in advanced processes,' she said. 'The highest-end semiconductors will be excluded,' Alicia Garcia-Herrero, chief economist for Asia Pacific at Natixis, told AFP. But 'this kills producers of low-end chips', including those based in Malaysia or China, she warned. On Thursday, shares in Taiwan's TSMC—world's largest contract maker of chips, which counts Nvidia and Apple among its clients—soared nearly five percent after the government said the company would not be affected. Taiwan is a global powerhouse in semiconductor manufacturing, with more than half of the world's chips and nearly all of the high-end ones made there. — AFP
India Today
2 days ago
- Business
- India Today
Trump warns of '1929-style Depression' if court rules against his tariffs
US President Donald Trump on Friday claimed his tariff policies are driving record gains in the stock market and bringing 'hundreds of billions of dollars' into the country's coffers, warning that a court ruling against him could plunge America into a '1929-style Great Depression.'In a lengthy post, Trump said tariffs were having a 'huge positive impact' on the economy, with 'new records set almost every day.' He cautioned that if a 'Radical Left Court' ruled against his administration at this stage, it would be 'impossible to ever recover' from the resulting economic would be 1929 all over again, a GREAT DEPRESSION!' Trump wrote, adding that such a decision would wipe out the 'wealth, strength, and power of America' and undo the gains made under his leadership. Trump insisted that the courts should have ruled earlier in the case if they intended to block his policies, arguing that the US now stood to lose its 'chance at greatness' if the decision went against him. 'Our country deserves success and greatness, not turmoil, failure, and disgrace. God bless America!' he new tariffs on US imports from dozens of countries went into effect on will now face an additional 25% duty on certain imports over its purchases of Russian oil, taking the total tariff rate to 50%. Exporters say the move will impact nearly 55% of outbound shipments to the US and threaten long-standing trade relationships.'Absorbing this sudden cost escalation is simply not viable. Margins are already thin,' SC Ralhan, president of the Federation of Indian Export Organizations, was quoted as saying by the Associated new rates took effect just after midnight, covering goods from more than 60 countries and the European Union. Imports from the EU, Japan, and South Korea now face 15% tariffs, while products from Taiwan, Vietnam, and Bangladesh are taxed at 20%.Trump also announced 100% tariffs on computer chips and higher rates on pharmaceuticals, saying the US is 'taking in hundreds of billions of dollars in tariffs' and predicting 'unprecedented' however, warn of slowing hiring, rising inflation, and falling home prices since the initial rollout in April. Germany's industrial production fell 1.9% in June, and Switzerland failed in a last-minute bid to avert 39% tariffs on its markets have shown resilience so far — the S&P 500 has climbed more than 25% since April — but analysts caution the adverse effects could take time to surface.- EndsTune InMust Watch
Korea Herald
4 days ago
- Business
- Korea Herald
Trump imposes extra 25% tariff on Indian goods, ties hit new low
WASHINGTON/NEW DELHI (Reuters) -- US President Donald Trump on Wednesday imposed an additional 25 percent tariff on Indian goods, citing New Delhi's continued imports of Russian oil in a move that sharply escalated tensions between the two nations after trade talks reached a deadlock. The new import tax will raise duties on some Indian exports to as high as 50 percent -- among the highest levied on any US trading partner. Trump's executive order imposing the extra tariff did not mention China, which also imports Russian oil, but later said he could announce similar further tariffs on Chinese goods. "It may happen ... I can't tell you yet," Trump told reporters. "We did it with India. We're doing it probably with a couple of others. One of them could be China." Analysts said Trump's move marks the most serious downturn in US-India relations since his return to office in January. The tariffs threaten to disrupt India's access to its largest export market, where shipments totaled nearly $87 billion in 2024, hitting sectors like textiles, footwear, gems and jewelry. It also marks a shift from the warm ties seen during Trump and Modi's February meeting, they said, pointing out Trump's recent remarks calling India's economy "dead," its trade barriers "obnoxious" and accusing the country of profiting from cheap Russian oil while ignoring the killings of Ukrainians in Russia's three-and-a-half-year-old invasion of its neighbor. India's external affairs ministry called the decision 'extremely unfortunate,' noting that many other countries are also importing Russian oil in their national economic interest. "India will take all necessary steps to protect its national interests," it said, adding that purchases were driven by market factors and the energy needs of India's 1.4 billion people. The development comes as Indian Prime Minister Narendra Modi prepares for his first visit to China in over seven years, suggesting a potential realignment in alliances as relations with Washington fray. Last week, US Treasury Secretary Scott Bessent warned China that continued Russian oil purchases could trigger new tariffs, as Washington prepares for the expiry of a US-China tariff ceasefire on August 12. Trade between the United States and India -- the world's biggest and fifth-largest economies respectively -- is worth over $190 billion. Exporters and trade analysts warn that the tariffs -- which Trump casts as a driver to reduce US trade deficits and reinvigorate domestic manufacturing -- could severely disrupt Indian exports. "This is a severe setback. Nearly 55 percent of our shipments to the US will be affected,' said S.C. Ralhan, president of the Federation of Indian Export Organizations. The increased duties place Indian exporters at a 30–35 percent disadvantage versus trade rivals in Vietnam, Bangladesh and Japan. 'With such obnoxious tariff rates, trade between the two nations would be practically dead,' said Madhavi Arora, economist at Emkay Global. Indian officials acknowledged pressure to return to negotiations with the Trump administration. A phased cut in Russian oil imports and diversification could be a part of the compromise. "We still have a window," said a senior Indian official, requesting anonymity. 'The fact that the new tariffs take effect in 21 days signals the White House is open to talks.' Another official said there were no immediate plans for Modi or senior leaders to travel to Washington, nor were any retaliatory measures being considered. Instead, the government is weighing relief for exporters, including interest subsidies and loan guarantees. A sharp drop in US-bound shipments could drag India's GDP growth below 6 percent this year, down from the central bank's 6.5 percent forecast, said Sakshi Gupta of HDFC Bank. India's rupee weakened in offshore non-deliverable forwards market while stock futures fell marginally after the announcement. "While markets have already started pricing in the risk of a sharp tariff hike, a near-term knee-jerk reaction is inevitable unless there's swift clarity or a breakthrough in negotiations," said Mayuresh Joshi, head of equity research for India at Willian O' Neil. Trump's move follows five rounds of inconclusive trade talks, which stalled over US demands for wider access to Indian agriculture and dairy markets. India's refusal to cut Russian oil imports -- which hit a record $52 billion last year -- ultimately triggered the tariff escalation. US and Indian officials told Reuters a mix of political misjudgment, missed signals and bitterness scuttled trade deal negotiations between the world's biggest and fifth-largest economies, whose bilateral trade is worth over $190 billion.
Mint
6 days ago
- Business
- Mint
Gujarat, UP, MP log strong export gains in FY25 amid headwinds: FIEO
Amid global trade turbulence, three of India's key industrial states—Gujarat, Uttar Pradesh, and Madhya Pradesh—posted strong export performances in 2024-25, signalling a deepening resilience and diversification in the country's outbound trade, said a report. Gujarat retained its position as the country's top exporting state for the fifth straight year, with outbound shipments totalling ₹ 9.83 trillion, or 26.6% of India's overall exports, said the report released by the Federation of Indian Export Organizations (FIEO) on Tuesday. While exports dipped slightly from the previous year, the report noted the state's continued dominance across a broad range of sectors, led by traditional strengths and new growth areas. The US, the Netherlands, and the United Arab Emirates remained Gujarat's top markets, while newer sectors such as aerospace and shipbuilding registered triple-digit growth, signalling a strategic shift toward high-value, innovation-driven exports, it added. Uttar Pradesh climbed to the fifth spot among Indian exporting states, notching a record ₹ 1.86 trillion in overseas shipments. The growth, the FIEO noted, was both deep and wide, cutting across electronics, garments, handicrafts, and emerging sectors such as aerospace and silk. The report highlighted Gautam Buddha Nagar, home to electronics and software manufacturing clusters, as the state's export engine, contributing more than half of the total. Government initiatives like one district one product (ODOP) were credited for supporting both modern industrial hubs and traditional artisan economies. The US, UK, and Germany emerged as the state's leading export destinations. Madhya Pradesh, meanwhile, posted its highest-ever exports at ₹ 66,218 crore, rising to 11th place nationally, its best ranking to date. Pharmaceutical products, engineering goods, and agricultural exports, particularly soybean-based animal feed, powered the surge. Indore and Dhar emerged as key districts, supported by robust industrial ecosystems and expanding special economic zones. The report also flagged strong performances in rubber, starch, and textiles, indicating a broadening export portfolio. The US, Bangladesh, and France ranked among the state's largest markets. The current analysis by the FIEO covers Gujarat, Uttar Pradesh, and Madhya Pradesh, with a broader review of other major exporting states expected in the coming days. The FIEO said the gains by these states underscored India's evolving export geography, marked by a growing role for interior regions and a shift toward diversified, innovation-led trade growth. To be sure, India's merchandise trade deficit widened to $282.8 billion in 2024-25, as imports rose to $720.24 billion while exports held steady at $437.42 billion. In comparison, the trade gap stood at $241.14 billion in 2023-24, with exports at $437.07 billion and imports at $678.22 billion. The FIEO report, based on data from the Directorate General of Commercial Intelligence and Statistics (DGCIS), ranks Gujarat, Maharashtra, Tamil Nadu, Karnataka, and Uttar Pradesh among India's top exporting states in 2024-25. 'This distribution reflects not only the industrial strength of coastal and urban Gujarat but also the growing role of interior districts in value-added exports,' it said. 'The data underlines a positive trajectory where industrial diversification and decentralisation are helping Gujarat sustain its leadership in India's export landscape,' it added.
Hans India
02-08-2025
- Business
- Hans India
Trump slaps 25% tariff on Indian goods with an EO
New York/Washington: US President Donald Trump unveiled sweeping new tariffs on dozens of countries including 25 per cent duties for goods from India, marking a new era of American protectionism that triggered fresh tensions and concerns over a much wider disruption in the global trade landscape. The US president signed an executive order that raised tariffs for over five dozen countries with Washington's negotiations for trade deals went down to the wire ahead of the August 1 deadline. In the Executive Order (EO) titled 'Further Modifying The Reciprocal Tariff Rates', Trump announced tariff rates for nearly 70 nations. A 25 per cent 'Reciprocal Tariff, Adjusted' has been imposed on India, according to the list released. The executive order however does not mention the 'penalty' that Trump had said India will have to pay because of its purchases of Russian military equipment and energy. On Wednesday, Trump announced the 25 per cent tariff on India and an additional penalty for New Delhi's purchases from Russia. While August 1 was the tariff deadline, the new levies will come into effect from August 7. In April, Trump had announced that India will face a 26 per cent 'discounted reciprocal tariff', a per cent higher than the rate announced now. Responding to the executive order, Senior Vice President of the Asia Society Policy Institute (ASPI) and former Deputy US Trade Representative Wendy Cutler said in a statement that India, a 'promising candidate for an early agreement', was assigned a 25 per cent tariff. This 'calls into question the fate of a bilateral trade agreement. The President's annoyance with India on a range of trade and broader matters rang through his Truth Social post,' Cutler said. Federation of Indian Export Organizations (FIEO) Director General Ajay Sahai said that the order provides relaxation for goods in transit and those loaded on ship for final sailing to the US by August 7. Goods cleared for consumption in the US by October 5 will also not be subject to reciprocal tariffs, thus providing some relief to exporters of goods already shipped or likely to be shipped this week. According to Cutler, US customs officials will face challenges implementing the executive order, particularly with the different tariff rates now applied across the world. The seven-day breathing period before implementation will help, but importers should expect start-up problems at a minimum. 'US companies will also face challenges as they navigate this new tariff landscape. Of particular concern is the continued uncertainties they will face with new sectoral tariffs coming and possibilities of additional tariffs if the Administration believes countries are not operating in good faith in their implementation efforts,' she said. In the executive order, Trump stated that some trading partners have agreed to, or are on the verge of agreeing to, meaningful trade and security commitments with the US, thus signalling their sincere intentions to permanently remedy trade barriers and align with Washington on economic and national security matters. Other trading partners, despite having engaged in negotiations, have offered terms that, in my judgment, do not sufficiently address imbalances in our trading relationship or have failed to align sufficiently with the United States on economic and national-security matters,' he said. The tariff modifications shall be 'effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am eastern daylight time 7 days after the date of this order.' The tariffs in the list range from 10 per cent to 40 per cent, with Japan being charged 15 per cent, Laos and Myanmar (40 per cent each), Pakistan (19 per cent), Sri Lanka (20 per cent) and the United Kingdom (10 per cent). Declaring that the US has a massive trade deficit with India, Trump had said that while 'India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high, among the highest in the world, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any country. 'Also, they have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of energy, along with China, at a time when everyone wants Russia to stop the killing in Ukraine — All things not good!' Trump said.
