Latest news with #USimports
Russia Today
6 days ago
- Business
- Russia Today
South Africa revises trade agreement with US
South Africa's Department of Trade, Industry and Competition (DTIC) and the Department of Agriculture have confirmed that they will submit a 'generous' revised trade offer to the United States in response to reciprocal tariffs imposed on Pretoria. The Cabinet has approved a revised trade offer which will be submitted on Tuesday as part of the government's five-point response to the 30% unilateral tariff imposed by the US on SA imports. The government's revised offer is one of five measures responding to the US's unilateral tariff hikes which began last Friday. Addressing the media on Tuesday morning, DTIC and Agriculture ministers Parks Tau and John Steenhuisen respectively, also unveiled that they had assembled a high-level team comprising the presidency and the two departments to spearhead the tariff negotiations with the US. However, both also said South Africa was seeking trade agreements beyond the US. They also revealed that Washington additionally requested South Africa to lower tariffs, aligning with the European Union (EU) trade regime as outlined in the SADC-EU Economic Partnership Agreement. While Steenhuisen could not fully explain the offer's contents, he described the revised proposal as 'broad, generous, and open,' meeting the desired ambition criteria. 'This is a broad, generous and open offer ... and I think if one would look at the trade and tariff perspective I think this offer represents something that would be good for the United States and also good for South Africa,' Steenhuisen said. He said he hopes the US will accept the offer in a good gesture. 'We have to navigate the seas that are in front of us and this is perhaps a new way that things are going to go forward and I think we must do what we can to improve relations with the US and retain access to their markets. 'I think it's in their interests to have a good relationship with the most industrialised and largest economy in the continent,' Steenhuisen said. The two ministers, however, stressed the importance for the country to look beyond the US and explore other markets globally. 'We must make sure we don't put all our eggs in one basket and we look for other markets like China, Japan, the Middle East and so on. 'These are huge opportunities that remain untapped for us as South Africa and perhaps this crossroads that we are at now with this tariffs situation is more of an incentive to move more determinedly towards securing these new markets for South Africa's goods,' Steenhuisen said. Tau concurred with Steenhuisen, saying that South Africa had diversified at this point, and the entire Cabinet was involved in this diversification process. 'Part of our reality is that we have to invoke all members of the national executive to be part of the pool of people and we would be able to provide the necessary support behind that pool of people. 'We are committed to strengthening our relationships, particularly under the AfCFTA, to build regional resilience,' said Tau. 'We will also continue the work we have started with our European partners towards enhancing our trade and investment relations in a manner that unlocks sustainable growth and development and entrenches South Africa in new supply-chains,' he said. The ministers said they have put together a high-level team from Agriculture that will be led by the Presidency to go and engage the US on a number of trade issues. Tau said he was engaging with the department of Mineral Resources and Petroleum to also be more involved. The government's response to the US tariffs is anchored on five key elements which are to secure a deal and reduce tariffs, to alternate markets, and foster an economic response package to vulnerable companies and workers. Others include a trade defense against import surge and dumping while they demand side interventions to leverage buying power by local consumers, private sector, and government. First published by IOL
Yahoo
11-08-2025
- Business
- Yahoo
Retaliatory tariffs put Bick's in a pickle despite its Canadian roots
The latest casualty in the trade war between Canada and the United States is the popular Bick's brand of pickles, which are produced exclusively for the Canadian market using homegrown cucumbers, but have been recently removed from various store shelves due to the cost of tariffs. Bick's pickles are sent to the U.S. for packaging in glass jars. As a result, they're classified as U.S. imports when they are brought back into this country, making them subject to Canada's counter tariffs, which include a 25 per cent tariff on 'cucumbers and gherkins.' 'The way the tariff is applied right now is on a harmonized system code basis, and so if a good comes in the category with a 25 per cent duty on it, it would not get an exemption as that category is specifically targeted,' Werner Antweiler, an associate professor and chair of international trade policy at the University of British Columbia's Sauder School of Business, said. 'The government selected these goods because there are available Canadian alternatives. Consumers do have the option of buying an alternative and not paying the high price for tariffed products.' It's a case of how today's supply chains can inadvertently drive up costs for local products and reduce their competitiveness, prompting some retailers to drop them in favour of tariff-free alternatives. Under the Canada-U.S.-Mexico Agreement (CUSMA), a product substantially transformed in one of the three countries qualifies as originating from there. The final packaging of Bick's pickles happens in the U.S., so they 'originate' from the U.S. and are subject to Canada's tariffs. Antweiler said certain stores are marking tariffed products with a 'T' as the Buy Canadian movement gains popularity. The change in preference from consumers is a 'selection story,' according to him, one that is driven by personal choices to disassociate themselves from brands that have links to the U.S. . But the decline in Bick's sales is more because of the increased price of the product due to the tariff rather than customers choosing to buy local. Many Canadian companies ship raw goods to the U.S. for processing because of lower costs, greater scale, specialized equipment or long-standing supplier contracts. For example, they can depend on U.S. suppliers for glass containers given the limited manufacturing of them domestically. This approach has long been an efficient way to compete, but the new tariffs are exposing its vulnerabilities. Many products cross the border multiple times before reaching store shelves, and a single U.S.-made component can change the product's trade classification. That can make a Canadian-grown or -produced item more expensive, thereby narrowing margins and making it harder to compete with tariff-free alternatives. Antweiler said companies may try to keep their existing manufacturing chains if they think the tariffs are temporary. 'If tariffs are expected to stay in place for a long time, companies will find new partners and revamp their supply chains to avoid cross-border traffic,' he said. 'If they're seen as temporary, most will hold their breath and wait it out.' Canada could be trade winner as U.S. tariffs undershoot global competitors by wide margin, says report Canadian steelmakers need to focus on domestic market as tariffs lock them out of U.S.: Algoma CEO But tariff pressures could force companies to rethink their sourcing, invest in Canadian capacity or risk losing shelf space to tariff-free competitors. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNN
11-08-2025
- Business
- CNN
Trump is calling Wall Street's bluff on tariffs
Tariffs Donald Trump Investing StocksFacebookTweetLink Follow Wall Street traders embraced the term TACO — Trump always chickens out — earlier this year to describe President Donald Trump's on-again, off-again position on tariffs. Trump liked to impose hefty import taxes but would inevitably back off when markets plunged, analysts said. Now Trump is calling the market's bluff. Yet another round of new tariffs went effect on Thursday, lifting the average tax on US imports to the highest level since the 1930s. Trump bet markets would absorb this latest news, adapt and move on — and so far he appears to have been right. Stocks still closed higher on the week, with the Nasdaq hitting a record high on Friday and the S&P 500 notching its best week in over one month. It's a remarkable shift from early April, when the president's 'Liberation Day' tariffs caused stocks across the globe to plunge. But with economists saying tariff effects could take weeks or months to play out, it's too soon to declare victory just yet. 'He is succeeding in implementing major tariffs without shocking the stock market,' said Ethan Harris, former head of global economics at Bank of America. 'It's surprising, and you could call it an accomplishment if you're in favor of tariffs.' Trump may be winning the hand, but Wall Street has lots of cards left. The game isn't over. Investors in recent months have embraced the 'TACO' trade. A better description would be, 'Trump always tries again,' according to Harris. With the latest import taxes, Trump is pushing forward with an average tariff rate just slightly slower than what he tried to impose on April 2, according to the Budget Lab at Yale. While stocks are hovering near record highs, Harris said he expects tariffs will inflict 'real damage' on the economy, and it remains to be seen if investors will stay complacent. The inclusion of carveouts has softened the blow of tariffs, according to Kurt Reiman, head of fixed income at UBS. That has helped temper investors' concerns. Apple (AAPL), for example, is exempt from tariffs on some imports from India and tariffs on semiconductors because of its pledge to develop production in the United States. Apple stock last week soared 13% and had its best week since 2020. 'The tariff wall being built by the administration also has many holes because of numerous product exemptions, carveouts and delayed implementation dates,' Reiman said. Enthusiasm about the AI boom in the United States is also driving market momentum and drawing attention away from tariffs. While investors have been concerned about trade, blowout earnings from big tech companies like Nvidia (NVDA) and Meta (META) have helped buoy the market. In addition, trading partners have largely not retaliated, avoiding a global trade war that would have had worse outcomes for the US economy, according to David Doyle, head of economics at Macquarie. 'What's really struck me is how little Trump has had to chicken out from,' Robert Armstrong, the Financial Times columnist who coined the term 'TACO,' told CNN's Richard Quest in an August 1 interview. Wall Street's fear gauge, the CBOE Volatility index, spiked in early April above 50 points — a historic level not seen since the Covid pandemic or the 2008 financial crisis. The VIX in August just briefly breached 20 points — a level associated with slightly noticeable volatility — before retreating. Investors are maintaining faith in a 'Trump put,' or the notion that if the markets do plummet, the president will refine his approach. The 'Trump put' is different from chickening out, analysts say, as the president might back down just enough to satisfy markets before pushing forward again with his tariffs when he is able to. 'He always tries again until the equity market punishes the policy,' Harris said. 'That's the old 'Trump put' idea, which is the way people used to talk about it, and is still the correct way to think about the trade war.' While Trump has implemented his tariffs, it might be too soon to call victory. Investors are awaiting data on inflation and the labor market in upcoming months to get a better sense of how tariffs are impacting the economy. 'As an investor, you can talk yourself into not worrying about tariffs, but if you're a company trying to make business plans, you can't afford to ignore the tariffs,' Harris said. 'The stock market and the economy are not the same thing.' Arun Sai, senior multi-asset strategist at Pictet Asset Management, said investors are taking two leaps of faith in believing in the resilience of the US economy and that 'the stagflationary impulse of tariffs' — slower growth and stickier inflation — won't be as bad as initially feared. Markets are a 'little too complacent,' Sai said, and he will be watching the next two inflation reports ahead of the Federal Reserve's September policy meeting for any sign of tariff-induced increases in prices. 'By no means are we out of the woods,' Sai said. ' We are priced for nothing to go wrong, and yet we still have a very important inflection point ahead of us.'
Times of Oman
09-08-2025
- Business
- Times of Oman
More tariffs on the way – Learn to become self-sufficient
Every day, we hear news of fresh and increased tariffs on US imports. Last Wednesday, Donald Trump imposed an additional 25 percent tariff on Indian imports, bringing the total to 50 percent. Speaking to The Times of Oman, R. Madhusoodanan, a financial expert based in Muscat, said, 'This is nothing but a retaliatory action' by the US, citing that India continued to purchase of Russian crude. This is quite discriminatory as China is importing more crude from Russia than India, and still, their tariff is much lower than that of India. No doubt, if implemented, India's exports to the US, particularly textiles, pharma, vehicle parts, leather, and marine products, are expected to be impacted at least in the short term. For example, the current tariff on steel, copper, and aluminium is 1.7 percent, while the revised rate will be 51.7 percent, whereas the tariff applicable to Mexico , China, and Canada is 25 percent, 30 percent, and 35 percent, respectively. This makes the Indian products costly for the US customers. 'Unfair, unjustified, and unreasonable' The Indian government has said the move is 'unfair, unjustified, and unreasonable. The government has been taking steps to diversify the export markets to other regions, including South American countries, to mitigate the potential risks. More credit flow is expected to happen to sectors like agriculture, manufacturing, pharma, housing, and textiles. New markets, infrastructure, tariffs on imports, export incentives, and tax sops are also very important, besides making available cheap, timely, and adequate finance to these sectors. Currently, India has around 18 percent of its exports to the US, and India has a trade surplus with US. New developments may impact the trade deficit of India. The shocks in the Indian equities, weaker INR, and high volatility in the forex markets are indicators., he further said. It is high time that India became self-sufficient in many areas and to have checks on the import of electronic goods, gold, and other precious metals to preserve forex earnings. Efforts also needed to produce goods and services that are globally competitive. Outlook The new tariffs on more than 90 countries around the world have come into effect. But the fact is that the US is also not insulated from the aftermath of the tariff decisions. The latest payroll data released is not good. The dollar index (DIX), which indicates the strength of the dollar against a basket of currencies, is in the range of 98-99. Inflation and growth concerns are also factors facing the US economy. The US is well aware of the consequences of its exports and the higher inflation, etc, due to the increased tariffs. US kept the windows open for discussion with many countries, including that of India, and the new rates are unlikely to be the final ones, R. Madhusoodanan said.
Al Arabiya
07-08-2025
- Business
- Al Arabiya
Swiss Federal Council to hold extraordinary meeting after US tariff talks
The Federal Council of Switzerland will hold an extraordinary meeting on Thursday afternoon after its delegation to the US returned following an attempt to avert 39 percent tariffs on US imports of Swiss products, the government said in an X post. Swiss President Karin Keller-Sutter left Washington empty-handed on Wednesday without meeting with US President Donald Trump or any of his top trade officials, a source earlier told Reuters. Her proposal for a 10 percent tariff rate was rejected by US officials, the source added. Keller-Sutter said on Wednesday she had a 'very good meeting' with US Secretary of State Marco Rubio.
