Latest news with #US-sourced
Fibre2Fashion
2 days ago
- Business
- Fibre2Fashion
What prompts Bangladesh to revisit its raw material sourcing strategy?
In the realm of apparel manufacturing and exports a new variable has entered the equation—reciprocal tariffs imposed by the United States, which has presented a fresh wave of challenge for manufacturers across geographical locations. Bangladesh, the world's second-largest apparel exporter, faces a 36.5 per cent total tariff on exports to the US, combining a new 20 per cent reciprocal tariff with an existing 16.5 per cent duty. However, US rules, specify apparels made with 20 per cent or more US-sourced raw materials may receive partial duty exemption. Bangladesh's manufacturers are considering increasing cotton imports from US. For Bangladesh, the world's second-largest apparel exporter after China, the situation is complex. Although the 20 per cent reciprocal tariff announced by the Trump administration may appear relatively modest compared to tariffs levied on some other countries, the overall tariff burden is substantial. With an existing 16.5 per cent tariff already in place, the new policy raises the total tariff cost to 36.5 per cent. This jump in tariffs has emerged as a matter of concern amongst the garment makers in Bangladesh, resulting in recalibration of strategies. Industry players acknowledged that while the reciprocal tariff of 20 per cent might appear somewhat manageable, the cumulative effect when combined with existing duties poses a hurdle to Bangladesh's overall competitiveness in its single largest export market. However, there is a silver lining for Bangladesh amid these policy shifts—its stronghold in cotton-based apparels. For years, Bangladesh has been known for its dominance in cotton garments, which form the core of its export portfolio to the US. As per reports, around 75 per cent of apparel items exported from Bangladesh to US are cotton-based. This distinction is very important as under US tariff rules, garment items that contain at least 20 per cent raw materials sourced from the United States are eligible for partial exemption from countervailing duties. In simpler terms, if Bangladeshi apparels include enough US-grown cotton, the tariff burden can be significantly reduced. The country's apparel exporters, always quick to adapt to changing trade and manufacturing dynamics, are now moving to capitalise on this clause. As per industry insiders, textile manufacturers in the country are actively working to double their cotton imports from the United States within the next year or so. This strategic pivot is singularly aimed to secure duty-free or lower-duty access to the US market by satisfying the raw material origin criteria laid out in the new policy. Though American cotton is priced higher than most of its global counterparts, it holds one major advantage: lower wastage. According to industry players in Bangladesh, US cotton generates only 5–10 per cent waste during processing, compared to 15 per cent for Indian cotton and 12 per cent for African. So, usage of US cotton, over time, makes American cotton more economical, despite its higher upfront cost. Moreover, US cotton is also highly regarded for its consistent quality, strength, and reliability, all of which are crucial attributes for large-scale garment manufacturers. For Bangladesh, aligning its raw material sourcing with American cotton could mean not only reduced tariffs but also better-quality garments that enhance its global reputation. The latest move comes in direct response to the Trump administration's announcement on July 31, 2025, imposing a 20 per cent reciprocal tariff on a range of Bangladeshi goods, effective from August 7, 2025. While such policy measures are aimed at addressing trade imbalances and pressuring countries to open up their own markets, they also bring with them a fair amount of uncertainty and disruption—especially in tightly integrated global supply chains. Despite this, industry leaders in Bangladesh remain optimistic. They believe that the increased use of US cotton, even at a higher cost, will not undercut the competitiveness of Bangladesh's RMG sector. Instead, it could serve as a calculated investment to ensure better access to the US market, which accounts for a significant share of Bangladesh's total apparel exports. As per reports, in the past few years (2020–2024) Bangladesh imported around 39.61 million bales of cotton, worth approximately $20.3 billion, from 36 countries, including India, Australia, Brazil, US, China, and various African nations. Of this, the United States reportedly contributed 2.84 million bales, valued at around $1.87 billion. However, now, with the new reciprocal tariffs in place, Bangladesh is poised to sharply increase this volume. This transition many not be without some challenges. However, given the high stakes—preserving market share in the US, avoiding harsh tariff penalties, and maintaining cost competitiveness—Bangladesh apparel makers are all set to source more cotton from the United States, a move that highlights the country's ability to move quickly and strategically to mitigate the tariff fallouts to maintain its standing as one of the world's top apparel exporters. Fibre2Fashion News Desk (DR)
Economic Times
08-08-2025
- Economic Times
CBSA uncovers 197 Kg of cocaine at Blue Water Bridge in one of the biggest border drug busts
CBSA officers at the Blue Water Bridge seized 197 kilograms of cocaine, valued at $24.6 million, from a commercial truck entering Canada. The driver, Onkar Kalsi, was arrested and faces charges of importation and possession for trafficking. This significant seizure is part of a larger trend, with over 1,164 kilograms of cocaine seized from US sources this year. Tired of too many ads? Remove Ads One Arrest and two charges Tired of too many ads? Remove Ads Part of a growing pattern Canada Border Services Agency ( CBSA ) officers have intercepted a massive cocaine shipment worth $24.6 million at the Blue Water Bridge crossing in southwestern are calling it a 'significant seizure.'A commercial transport truck entering Canada from the United States was referred for a routine secondary inspection at the Point Edward port of entry on July 23. Upon examining the trailer, officers discovered seven large duffel bags containing tightly wrapped bricks of suspected total weight of the narcotics seized was 197 kilograms, an amount that CBSA officials say could have fueled substantial organized crime activity on Canadian streets.'This significant seizure highlights the critical role our border services officers play in disrupting the illegal flow of drugs into Canada,' said Michael Prosia, Regional Director General for CBSA Southern Ontario Region. 'Their vigilance and our collaboration with the RCMP are protecting our communities every day.'The driver of the truck, 29-year-old Onkar Kalsi of Caledon, Ontario, was immediately arrested and transferred into RCMP custody. He now faces two charges, importation of cocaine and possession of cocaine for the purpose of trafficking, both under Canada's Controlled Drugs and Substances charges are serious, and if convicted, Kalsi could face a mandatory minimum of two years and up to life in CBSA data shows that from January 1 to July 10, 2025, over 1,164 kilograms of US-sourced cocaine were seized by officers, along with another 514 kilograms from other international emphasize that these busts aren't just numbers, they represent real lives potentially affected. Cocaine trafficking fuels violence, addiction, and exploitation, and the frontline role played by CBSA officers continues to be a key next court appearance has not yet been scheduled. The investigation remains ongoing, with CBSA and RCMP continuing to probe the network behind the attempted importation.
Cision Canada
15-07-2025
- Business
- Cision Canada
Canadian Food Industry Responds to Escalating U.S. Tariffs with Strategic Shifts in Supply, Pricing, and Market Focus Français
MONTRÉAL, July 15, 2025 /CNW/ - As U.S. tariffs continue to disrupt global trade, Canadian food manufacturers and distributors are taking swift and strategic action to counter the impact of rising costs, supply chain instability, and cross-border uncertainty, according to a comprehensive summary on the state of food manufacturing in Canada, released by Richter. Based on insights gathered from senior leaders across the food sector, Richter's summary reveals that companies, already navigating post-pandemic recovery, are now facing compounding trade challenges. In response, many are adopting new tactics, including renegotiating supplier contracts, diversifying supply sources, and adjusting pricing models. "Tariffs are adding cost pressure and volatility just as we're regaining stability," said one foodservice distributor consulted by Richter. "Many companies are now embedding tariff clauses and shifting suppliers entirely." Key findings from Richter's analysis include: Diversifying the supply base: Companies are reducing reliance on U.S. inputs by exploring Canadian, European, and Asian suppliers. For example, one leader in beverage manufacturing is looking closer to home and finding results; "about 40% of our raw material costs are currently US-sourced, and we plan to reduce this to about 20%. We've found some Canadian suppliers at 60-70% of US costs with better lead times." Renegotiating Supplier Contracts: Operators are renegotiating contracts to include volume-based discounts, flexible pricing terms, and risk-sharing mechanisms. One leader in the meat processing industry commented: "we negotiated volume discounts and better terms with core suppliers." Managing Input Costs: Cost-conscious changes in materials and product formats are helping mitigate inflation without major operational overhauls. Selective Price Increases: Tiered and SKU-level pricing strategies are being implemented to balance cost recovery and customer sensitivity. For example, a leading meat processor comments: "We adopted a two-tier pricing strategy: absorption on premium, pass-through on commodity SKUs." Operational Adjustments: Companies are increasing inventory buffers and warehousing capacity to manage transit disruptions and cost spikes. A leading seafood distributor comments: "We usually hold a safety stock of around eight weeks. We have pushed that out now to about 10 weeks." However, this also raises concerns about warehousing costs, which could further erode margins if not managed carefully. Despite these tactical responses, Richter warns that the sector needs a more strategic, long-term response to build resilience in the face of continued trade instability. The firm outlines six priority actions: Diversify sourcing at a strategic level Restructure cross-border operations Invest in forecasting and scenario planning tools Redesign pricing and commercial models Pursue new domestic and international markets Explore vertical integration for critical inputs "Tariff disruption is no longer a short-term issue—it's a structural shift," said the summary. "Canadian food businesses must proactively transform their supply chains, pricing strategies, and market exposure if they hope to thrive in this evolving trade environment." To read the full summary, click here. Richter is a Business | Family Office that provides strategic advice on business matters and on families' financial and personal objectives across generations. With close to 100 years of experience advising at the intersection of family and business, Richter has developed an integrated approach to help business owners find sustainable success. Whether business, personal, or both, Richter is uniquely positioned to address the needs of Canada's most successful entrepreneurs, private clients, business owners and business families and help them chart a clear path to shape their legacy for the future. Founded in 1926, Richter's 600-person multidisciplinary team continuously innovates to create value for our people, clients, and community in Canada and in the US.
The Independent
11-07-2025
- Politics
- The Independent
Taiwan shows off first US Abrams tanks at largest war games
Taiwan's army on Thursday displayed the fire power of its first US-sourced M1A2T Abrams tanks – a traditional weapon that analysts say will need to be increasingly protected against drones in any future battle given lessons from the Ukraine war. Four Abrams tanks were shown manoeuvring across a mud-choked army training ground in Hsinchu county, firing at moving and static targets, on the second day of Taiwan's annual military exercises that are designed to test the island's resilience in a conflict with China. Wearing a combat helmet, president Lai Ching-te observed the firing, saying later that with "every increase in the military's combat power, the nation and its people gain an extra layer of security". "Whether in terms of strike capability or mobility, it was extremely powerful and undoubtedly the strongest tank on the battlefield," Mr Lai said. Senior military officials in Lai's government say they intend the comprehensive 10-day drills to show both China and the international community, including its key weapons supplier the U.S., that Taiwan is determined to defend itself against any China attack or invasion. China views the democratically governed island as its own and has intensified military pressure around Taiwan over the last five years. Mr Lai's comments also come ahead of a recall parliamentary election on 26 July that could see his ruling Democratic Progressive Party (DPP) take back control of the legislature. The tanks are among the first batch of 38 Abrams main battle tanks delivered in December, with the rest of the 108 ordered by Taiwan due to be delivered later this year and next year. They marked Taiwan's first new tanks for 24 years. Analysts and regional military attaches say that while the Abrams remains a potent and highly adaptable weapon that would help Taiwan defend its cities and coasts in an invasion scenario, Taiwan will have to leverage its counter-drone technology to protect them. Both Russian and Ukrainian tanks, including US Abrams supplied to Kyiv, have reportedly proven vulnerable to drones and advanced anti-tank weapons. The tanks have yet to be fully commissioned and Wednesday's test firing was not a formal part of the Han Kuang drills, which are designed to replicate full battle conditions at sea, on land and in the skies, military officials said. Major General Chou Kuang-i, who heads the 584th armour brigade, said he expected the tanks to be in service later this year and deployed to combat zones according to "the current enemy threat and the tactical needs". Singapore-based military scholar Thomas Lim said he expected Taiwan would attempt in a war scenario to cover their "prized assets" with counter drone elements, or also deploy them from high positions for extra protection. "This isn't it isn't a problem unique to Abrams," said Mr Lim, of Singapore's S. Rajaratnam School of International Studies. President Lai said that he believed that through "realistic combat training", the M1A2T tank will "be able to integrate with drones and innovative tactics to more effectively fulfill the nation's strategic objectives". China's defence ministry on Tuesday said that Taiwan's drills were "nothing but a bluff". Alongside the military drills Taiwan authorities are holding civil defence rehearsals to test public reactions and build resilience. Local supermarket chain PX Mart held evacuation drills in three stores on Thursday, with shoppers escorted into basements as air raid sirens sounded. Deputy secretary-general of Taiwan's National Security Council, Lin Fei-fan, said the drill is a reminder that both government and civil society must be prepared for 'every kind of situation', citing the challenges and risk facing the island.
Free Malaysia Today
10-07-2025
- Politics
- Free Malaysia Today
Taiwan shows off new US tanks amid annual war games
Four Abrams tanks were seen manoeuvring across a mud-choked army training ground in Hsinchu County today. (AP pic) TAIPEI : Taiwan's army today displayed the fire power of its first US-sourced M1A2T Abrams tanks – a traditional weapon that analysts say will need to be increasingly protected against drones in any future battle given lessons from the Ukraine war. Four Abrams tanks were shown manoeuvring across a mud-choked army training ground in Hsinchu County, firing at both moving and static targets, on the second day of Taiwan's annual military exercises, which are designed to test the island's resilience in a conflict with China. Wearing a combat helmet, president Lai Ching-te observed the firing, saying later that with 'every increase in the military's combat power, the nation and its people gain an extra layer of security'. 'Whether in terms of strike capability or mobility, it was extremely powerful – undoubtedly the strongest tank on the battlefield,' Lai said. Senior military officials in Lai's government say they intend the comprehensive 10-day drills to show both China and the international community, including its key weapons supplier the US, that Taiwan is determined to defend itself against any China attack or invasion. China views the democratically governed island as its own and has intensified military pressure around Taiwan over the last five years. Lai's comments also come ahead of a recall parliamentary election on July 26 that could see his ruling Democratic Progressive Party (DPP) take back control of the legislature. The tanks are among the first batch of 38 Abrams main battle tanks delivered in December, with the rest of the 108 ordered by Taiwan due to be delivered later this year and next year. They marked Taiwan's first new tanks for 24 years. Analysts and regional military attaches say that while the Abrams remains a potent and highly adaptable weapon that would help Taiwan defend its cities and coasts in an invasion scenario, Taiwan will have to leverage its counter-drone technology to protect them. Both Russian and Ukrainian tanks, including US Abrams supplied to Kyiv, have reportedly proven vulnerable to drones and advanced anti-tank weapons. The tanks have yet to be fully commissioned and yesterday's test firing was not a formal part of the Han Kuang drills, which are designed to replicate full battle conditions at sea, on land and in the skies, military officials said. Major-general Chou Kuang-i, who heads the 584th armour brigade, said he expected the tanks to be in service later this year and deployed to combat zones according to 'the current enemy threat and the tactical needs'. Singapore-based military scholar Thomas Lim said he expected Taiwan would attempt in a war scenario to cover their 'prized assets' with counter drone elements, or also deploy them from high positions for extra protection. 'This isn't straightforward… but it isn't a problem unique to Abrams,' said Lim, of Singapore's S Rajaratnam School of International Studies. President Lai said that he believed that through 'realistic combat training', the M1A2T tank will 'be able to integrate with drones and innovative tactics to more effectively fulfil the nation's strategic objectives'. China's defence ministry on Tuesday said that Taiwan's drills were 'nothing but a bluff'.
