Latest news with #USTradeExpansionAct
TimesLIVE
14-07-2025
- Business
- TimesLIVE
US, SA mulling gas drive for auto exemptions in trade talks: Parks Tau
US President Donald Trump announced tariffs on auto imports in terms of section 232 of the US Trade Expansion Act, aimed at protecting the US industry. In April, he announced 'reciprocal' tariffs of 60% but suspended them for 90 days. Last week, he announced 30% tariffs on South Africa but allowed time until August to negotiate a trade deal. This is despite Ramaphosa travelling to Washington in May with a delegation that included billionaire Johann Rupert and agriculture minister John Steenhuisen. Tau said South Africa had its own set of demands for the US in the trade discussions, including provisions for auto and auto part imports to be made exempt from the section 232 tariffs announced earlier this year. 'In return, South Africa requested that the US consider the ... exemption of certain volume of cars and parts, and steel and aluminium from section 232 tariffs. 'While negotiations are under way, [SA asked] the US to maintain the reciprocal tariff at 10% or lower rate for other exports and maintain the Agoa [African Growth and Opportunity Act] preferential rate on MFN (most-favoured nation) duties.' He said South Africa asked the US to further exempt counter-seasonal fresh produce and exports from SMEs of less than $1m (R17.9m) per annum from the reciprocal tariff and grant market access for citrus, avocados, lychees and mangoes.
The Sun
05-06-2025
- Business
- The Sun
Malaysia must brace for future US tariffs, says US-Asean Business Council chief policy officer
KUALA LUMPUR: Malaysia must be prepared to negotiate the next wave of potential US tariffs targeting key strategic sectors and products such as semiconductors, technology products and pharmaceuticals, rather than focusing solely on negotiating reciprocal tariffs reductions currently with the United States. US-Asean Business Council (US-ABC) executive vice-president and chief policy officer Marc Mealy warned that although the 50% tariffs on aluminium and steel may not severely affect Malaysia in the near term, future tariffs imposed under US national or economic security provisions could have a direct impact on Malaysian industries that are highly integrated into global supply chains. 'Steel and aluminium are not Malaysia's primary export sectors to the US, so these new (aluminium and steel) tariffs, which come into effect today (Wednesday), may not hit Malaysia as hard as they would some other countries. 'But we should be clear, there are other tariffs coming and when we talk about semiconductors, high-tech products, pharmaceuticals, the impact on Malaysia could be significant,' he told Bernama in an interview after appearing as a guest on Bernama TV's 'The Nation' programme hosted by Jessy Chahal. Malaysia was hit with baseline and reciprocal tariffs totalling 24% on April 5, along with 168 other US trading partners, with tariffs ranging as high as 54% and a staggering 145% on China but which have now been reduced to 30%. US President Donald Trump then paused the implementation of the tariffs for 90 days, which are supposed to end on July 8, but he moved forward to impose sectoral tariffs on aluminium and steel imports into the US. In a further twist to the tariffs saga, a US Federal Court struck down most of Trump's tariffs, ruling them illegal, but the ruling has now been temporarily halted following an appeal by the Trump administration. Mealy noted that under US law, additional tariffs could be imposed unilaterally by invoking national or economic security reasons, citing Section 232 of the US Trade Expansion Act, which opens the door for Washington to target sectors beyond those currently under reciprocal tariff negotiations. 'In the semiconductor space, Malaysia is globally competitive and that puts it directly in the line of sight for possible future US tariffs. 'So, when Malaysian officials, like Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, go to the US, I would expect them to raise this issue and start negotiating for exclusions or carve-outs in these areas,' he added. The same concerns apply to Malaysia's medical devices and pharmaceutical exports, as these sectors could also fall under US scrutiny. 'Now is the time for Malaysia to reassess its domestic policies, particularly in key industries, and consider reforms to further strengthen investment appeal and mitigate potential fallout. Engage with the US government, but also look inward,' said Mealy. 'What changes can Malaysia make to enhance competitiveness? And as Asean Chair, Malaysia can lead the region to push for progress on initiatives like the Asean Digital Economy Framework Agreement – that will show global investors that this region is serious about future-proofing its economy.' Mealy underscored that the US private sector remains deeply committed to Asean, with many American companies continuing to expand in Malaysia, particularly in the technology and medical sectors. 'The private sector sees value in Malaysia and Asean, but trade policy changes from Washington could complicate that, unless mitigated by smart diplomacy, reform and regional cooperation.' Although Malaysia might not be severely impacted by the initial round of reciprocal tariffs – which could result in import duties of up to 24% on selected products – the real concern lies in future sectoral tariffs, that could reduce US demand for Malaysian exports. 'Even a 15 to 19% import tax can be a tipping point for an American buyer to source from another country,' Mealy said. Mealy also pointed out that while some Asean countries may not complete negotiations within the current 90-day timeframe, he did not rule out the possibility of the US extending the pause or focus on select countries for deeper discussions. 'For Malaysia, which has been strategic and measured in its approach, this may work to its advantage. But the time to prepare for the next round of trade measures is now,' he said. – Bernama
The Sun
05-06-2025
- Business
- The Sun
Malaysia must brace for fjuture US tariffs, says US-Asean Business Council chief policy officer
KUALA LUMPUR: Malaysia must be prepared to negotiate the next wave of potential US tariffs targeting key strategic sectors and products such as semiconductors, technology products and pharmaceuticals, rather than focusing solely on negotiating reciprocal tariffs reductions currently with the United States. US-Asean Business Council (US-ABC) executive vice-president and chief policy officer Marc Mealy warned that although the 50% tariffs on aluminium and steel may not severely affect Malaysia in the near term, future tariffs imposed under US national or economic security provisions could have a direct impact on Malaysian industries that are highly integrated into global supply chains. 'Steel and aluminium are not Malaysia's primary export sectors to the US, so these new (aluminium and steel) tariffs, which come into effect today (Wednesday), may not hit Malaysia as hard as they would some other countries. 'But we should be clear, there are other tariffs coming and when we talk about semiconductors, high-tech products, pharmaceuticals, the impact on Malaysia could be significant,' he told Bernama in an interview after appearing as a guest on Bernama TV's 'The Nation' programme hosted by Jessy Chahal. Malaysia was hit with baseline and reciprocal tariffs totalling 24% on April 5, along with 168 other US trading partners, with tariffs ranging as high as 54% and a staggering 145% on China but which have now been reduced to 30%. US President Donald Trump then paused the implementation of the tariffs for 90 days, which are supposed to end on July 8, but he moved forward to impose sectoral tariffs on aluminium and steel imports into the US. In a further twist to the tariffs saga, a US Federal Court struck down most of Trump's tariffs, ruling them illegal, but the ruling has now been temporarily halted following an appeal by the Trump administration. Mealy noted that under US law, additional tariffs could be imposed unilaterally by invoking national or economic security reasons, citing Section 232 of the US Trade Expansion Act, which opens the door for Washington to target sectors beyond those currently under reciprocal tariff negotiations. 'In the semiconductor space, Malaysia is globally competitive and that puts it directly in the line of sight for possible future US tariffs. 'So, when Malaysian officials, like Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, go to the US, I would expect them to raise this issue and start negotiating for exclusions or carve-outs in these areas,' he added. The same concerns apply to Malaysia's medical devices and pharmaceutical exports, as these sectors could also fall under US scrutiny. 'Now is the time for Malaysia to reassess its domestic policies, particularly in key industries, and consider reforms to further strengthen investment appeal and mitigate potential fallout. Engage with the US government, but also look inward,' said Mealy. 'What changes can Malaysia make to enhance competitiveness? And as Asean Chair, Malaysia can lead the region to push for progress on initiatives like the Asean Digital Economy Framework Agreement – that will show global investors that this region is serious about future-proofing its economy.' Mealy underscored that the US private sector remains deeply committed to Asean, with many American companies continuing to expand in Malaysia, particularly in the technology and medical sectors. 'The private sector sees value in Malaysia and Asean, but trade policy changes from Washington could complicate that, unless mitigated by smart diplomacy, reform and regional cooperation.' Although Malaysia might not be severely impacted by the initial round of reciprocal tariffs – which could result in import duties of up to 24% on selected products – the real concern lies in future sectoral tariffs, that could reduce US demand for Malaysian exports. 'Even a 15 to 19% import tax can be a tipping point for an American buyer to source from another country,' Mealy said. Mealy also pointed out that while some Asean countries may not complete negotiations within the current 90-day timeframe, he did not rule out the possibility of the US extending the pause or focus on select countries for deeper discussions. 'For Malaysia, which has been strategic and measured in its approach, this may work to its advantage. But the time to prepare for the next round of trade measures is now,' he said. – Bernama
Business Upturn
02-06-2025
- Business
- Business Upturn
Steel shares fall after Trump doubles US tariffs: JSW Steel down 1.29%, Tata Steel down 0.98%, SAIL down 1.20%, Jindal Steel down 0.57%
By Aditya Bhagchandani Published on June 2, 2025, 09:28 IST Shares of leading Indian steel manufacturers came under pressure on Monday, June 2, after former US President Donald Trump announced a significant hike in import tariffs on steel and aluminium. The Nifty Metal index fell 0.87% to 9,113.65. Among major losers: JSW Steel declined 1.29% to ₹980.65 Tata Steel slipped 0.98% to ₹159.44 SAIL (Steel Authority of India) dropped 1.20% to ₹127.63 Jindal Steel & Power was down 0.57% at ₹943.45 The pressure came after Trump, during a speech in Pennsylvania, vowed to double existing tariffs on steel and aluminium to 50%. In a later post on Truth Social, he confirmed the hike would come into effect on June 4 under Section 232 of the US Trade Expansion Act, citing national security risks. India exported $4.56 billion worth of steel and aluminium products to the US in FY25, including $3.1 billion in value-added steel articles. The US is a key market for Indian steelmakers due to its high consumption and favorable pricing environment. Experts believe the tariff hike could directly impact Indian exporters and potentially lead to trade diversion. Industry leaders, including those from JSW Steel and AMNS India, have called for proactive trade measures to protect domestic interests amid the shifting global landscape. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Mint
30-05-2025
- Business
- Mint
Trump's tariffs: Turfed out but raring to return
In a move that sets back US President Donald Trump's idiosyncratic plan to make America 'great again,' but could possibly slow down or arrest America's descent as a democracy, a court has ruled against the 'reciprocal' tariffs announced by him on 2 April, dubbed 'Liberation Day.' The power to levy such tariffs is held by the US Congress rather than its president, ruled the court, giving the White House 10 days to reverse import duties announced under the International Economic Emergency Powers Act (IEEPA). Also Read: Democracy could be the greatest casualty of Trump's war While this law grants the president power to 'regulate' imports, it does not mention 'tariffs.' Given the significance of these tariff measures and their 'unbounded' nature, the court held as invalid the assumed delegation of Congress authority to the White House under that law. In other words, the tariff orders had exceeded his authority. US stock market index futures jumped after the ruling, but it is premature to conclude that Trump's tariff tantrums are behind us. This is so for three reasons. One, as the US Court of International Trade's order is being appealed by the administration, it could be overturned either by a federal appeals court or the Supreme Court. Two, Trump's team might look for another statute to back his trade barriers. And, three, he could try pressuring lawmakers to enact his agenda and thereby secure it from judicial interdiction. Also Read: The many dangers that democracy confronts today Although aimed at external threats, the IEEPA adopted in 1977 was partly designed to curb and specify the emergency powers granted to the US president under prior laws like its Trading with the Enemy Act of 1917, which had been used by presidents to assume sweeping authority. In 1973, a Senate investigation had found various emergencies declared since 1933 still in force, which led to legislative efforts to constrain the White House. The IEEPA has hitherto been used to slam hostile countries with sanctions and confiscate foreign assets. Trump has been the first US leader to use this law to erect steep trade barriers against countries alleged to have put the country at threat by selling it more goods than buying US wares. Of the three judges who unanimously ruled against tariffs under the IEEPA, one had been appointed by Trump himself, a second by Obama and the senior-most by Reagan. It is difficult to pin their opinion on any partisan bias. The court also struck down tariffs imposed on countries for their alleged role in America's opioid crisis, citing a weak link between this action and its ability to deal with this declared emergency, but did not invalidate America's 25% duty on steel, aluminium, automobiles and auto parts levied under the US Trade Expansion Act. Under this law, tariffs can be imposed if the commerce secretary determines that specified imports threaten national security. Also Read: A trade arrangement that leaves out the US could trump Trump's tariffs It is conceivable that the Trump administration will seek to invoke such laws to re-impose levies should its appeal be rejected. However, it might be difficult to argue that garments from Asia pose a threat while clothes from Mexico do not. The win-win economic logic of trade should also make it hard to cast imports from specific countries as perilous, although political postures that feed on economic anxieties can colour popular views of what is good or bad for a country. Whichever way the legal battle goes, this week's court order on tariffs can be taken as a win for due process, even if uncertainty and volatility persist. Global growth is still at risk. Yet, at least on paper, an institutional commitment to the rule of law could relieve the world.
