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Hans India
17 hours ago
- Business
- Hans India
India has no legal basis to hit back, US tells WTO
Washington: India has 'no legal basis to impose retaliatory tariffs' against American duties on steel, aluminium and automobolies in the name of safeguarding, the United States told the World Trade Organisation (WTO) in an official communication on Thursday. This comes soon after India, in an official notification to the WTO's Safeguards Committee, stated that the safeguard measures on steel and aluminium would impact imports of $7.6 billion into the US from India on which the duty collection would be $3.82 billion. In the same manner, the measures can also affect imports of automobile products worth $2.89 billion, on which the duty collection would be $723.75 million. Back in March 2018, the US had introduced certain safeguard measures on steel and aluminium products by imposing 25% and 10% ad valorem tariffs respectively. Now in February 2025, the safeguard measures on imports of steel and aluminium articles were revised. An ad valorem tariff essentially refers to the tax or duty imposed on goods on the basis of their monetary value, rather than their quantity or weight. Similarly, the US also adopted a measure in the form of a 25% tariff increase ad valorem on imports of passenger vehicles, light trucks as well as some automobile parts originating from India. The measures on automobile parts have been in effect from May 3, 2025 till an undefined time period. Further, the US claimed that these tariffs were required and fell under a national security statute as an essential security exception. As per an Economic Times report, they stated that there was "no legal basis" for India's proposal to suspend concessions or other obligations with respect to these measures. These issues are being taken up at the WTO while the two sides are negotiating a bilateral trade agreement (BTA). Indian trade negotiators are currently in Washington to be a part of the fifth round of India-US BTA talks. Earlier this month also the Indian team was in Washington for talks, with negotiations taking place from June 26 to July President Donald Trump announced a raft of tariffs on a number of countries, including India, on April 2. However, it was soon postponed for 90 days until July 9 and later to August 1.
Bangkok Post
21 hours ago
- Business
- Bangkok Post
Nation edgy as decision day looms
The new US tariffs are set to have global repercussions and impact various countries unless negotiations for more favourable rates can be achieved prior to Aug 1. The US intends to impose a 36% reciprocal tariff on Thai goods, which could hinder the competitiveness of Thai products in the US market, especially when compared with rival nations such as Vietnam. Aat Pisanwanich, an analyst in international economics and advisor on Asean affairs at Intelligence Research Consultant, recently explored the implications of the policy, its potential impact, and outlined actions that Thailand ought to pursue moving forward. What are the main objectives of the US tariff measures? The primary goal of the American tariffs is to lower deficits with its trading partners. Last year, the US recorded a global trade deficit of US$1.2 trillion. Additionally, the government aims to boost its revenue from the elevated tariffs to make up for declines in corporate and personal income tax receipts. The revenue generated from these tariffs is expected to be dedicated to military spending and managing immigration under the One Big Beautiful Bill Act (2025). For the 2025 fiscal year, US tariff revenue is projected to reach $100 billion, based on the implementation of universal tariffs at 10%. Should reciprocal tariffs be introduced on Aug 1, the US will gain even more in tariff revenue and could potentially lure investment back to the nation. What are the principles behind the US tariffs? The US has imposed new tariffs, commonly referred to as the "Trump Tariffs" on nearly all countries due to its significant and prolonged trade deficits. These tariffs fall into two main categories: Universal tariffs: Trump announced a baseline 10% universal tariff on all imports to the US, regardless of whether the US has a trade surplus or deficit with them. These tariffs came into effect on April 5. Reciprocal tariffs: Effective as of Aug 1. The tariffs are calculated based on trade data in 2024, using the following formula: Import Tariff Rate (%) = (US trade deficit with a country ÷ US imports from that country) × 100 ÷ 2 For example, the US trade deficit with Thailand in 2024 was $45 billion, while total US imports from Thailand were valued at $63 billion. By applying the formula (45 ÷ 63) × 100 = 71.4% ÷ 2 = 35.7%, the resulting tariff rate is approximately 36%. The US has also enacted product-specific tariffs as part of its trade policy. Under Section 232, which addresses national security, the Department of Commerce is empowered to impose tariffs aimed at protecting the nation's economic security. These include a 25% tariff on imports of steel, aluminium and auto parts. It plans to impose a 50% tariff on copper and a 200% tariff on pharmaceuticals. Under the Tariff Act 1930, the US has set some extraordinarily high tariffs, such as a tariff of over 3,000% on solar panels from Cambodia and a tariff above 300% on those from Thailand. The US administration has utilised Section 301 to impose tariffs on a wide range of Chinese goods. What are the reciprocal tariff rates the US plans to impose on imports? Starting Aug 1, along with a 10% universal tariff applied to all imports, the US will impose reciprocal tariffs on imported products from various countries, with the rate varying by nation. If no agreements are reached before the deadline, the tariff rates will come into effect (see accompanying graphic). Mr Aat outlined the implications of these reciprocal tariffs on exported goods. For instance, consider Product A from Thailand. Previously priced at $100, the cost in the US will rise to $136 after Aug 1. In contrast, Product A from Vietnam, also previously exported to the US at $100, will see an increase resulting in a final price of $120, or $16 less than the Thai product. Are any Thai industries expected to benefit from the US tariff policy? The imposition of a 36% reciprocal tariff is not expected to favour any Thai industries, and the impact will differ from sector to sector. Last year, the value of Thailand's total exports to the US reached about $63 billion, with 85% industrial goods and 15% agricultural products. About 30% of industrial exports are conducted by small and medium-sized enterprises (SMEs), while larger exporters, both domestic and foreign, account for the remainder. Mr Aat said the most heavily impacted group would be Thai SMEs, due to the higher tariffs, heightened challenges in terms of competitiveness, and limited working capital. At the same time, they are also facing competition from an influx of Chinese products into the Thai market. Which industries will be negatively impacted? Mr Aat's assessment, based on Thailand's trade surplus value with the US last year, suggests several key industrial products are likely to be adversely affected by the new tariffs. These include communication and telecommunication equipment; computers and data processing systems; machinery parts; car tyres; electronic equipment and semiconductors; electric transformers and power supply equipment; motors and engines; rubber products; and electrical appliances. Additionally, agricultural products expected to be affected include rice and rice products; fresh and dried fruits; fruit and vegetable juices; and fresh and processed vegetables. How will Thai consumers be affected by the US tariff measures? According to Mr Aat, Thai consumers could experience a drop in income caused by a decline in exports, which would significantly slow down the economy. Although expenses may remain stable, the rising cost of living could become increasingly burdensome. There is also a high risk of job losses, business closures, and an increase in household debt. What actions should the government take to support affected industries? Mr Aat said the government must raise and allocate funds to stimulate the economy, as Thailand's economic growth could fall below 1% without such a stimulus, or might even face a contraction. Moreover, the government must provide support to farmers and affected SMEs, which could include tax exemptions, establishing compensation funds, exploring alternative markets, subsidising production costs, and offering low-interest loans. How are other countries assisting affected businesses and individuals? Mr Aat said Thailand should consider China's comprehensive measures, which include broad economic stimulus strategies, consumer support initiatives, the modernisation of manufacturing facilities through advanced technology, and fostering innovation via research funding. China is projected to allocate around $1 trillion to these efforts. Meanwhile, Indonesia has announced plans to distribute cash to low-income groups, along with a 30% discount on train fares, targeting about 18 million low-income individuals at a cost of around $1.3 billion.
Straits Times
2 days ago
- Business
- Straits Times
US solar panel makers seek tariffs on imports from Indonesia, India, Laos
Find out what's new on ST website and app. A group of solar panel manufacturers in the US has accused companies in Indonesia, India, Laos of dumping cheap goods on the market to undercut new American factories. WASHINGTON - A group of US solar panel manufacturers asked the Commerce Department on July 17 to impose tariffs on imports from Indonesia, India and Laos, accusing companies there of dumping cheap goods in the market to undercut new American factories. The petition is the latest effort by the small US solar manufacturing industry to seek trade relief to protect billions of dollars of recent investment and compete with goods produced mainly by Chinese companies overseas. The Alliance for American Solar Manufacturing and Trade, which filed the petition, includes Tempe, Arizona-based First Solar, Qcells, the solar division of Korea's Hanwha, and private companies Talon PV and Mission Solar. The group has succeeded previously in winning tariffs on imports from countries in South-east Asia including Malaysia, Cambodia, Vietnam and Thailand. Those tariffs were finalised earlier this year. The petition accuses companies of receiving unfair government subsidies and of selling their products below the cost of production in the United States. It says Chinese-owned companies shifted production from nations that received US tariffs to Indonesia and Laos and also accuses Indian-headquartered manufacturers of dumping cheap goods in the US. Top stories Swipe. Select. Stay informed. Singapore Driverless bus in Sentosa gets green light to run without safety officer in first for S'pore World US strikes destroyed only one of three Iranian nuclear sites, says new report Business 5 things to know about Kuok Hui Kwong, tycoon Robert Kuok's daughter and Shangri-La Asia head honcho Asia Air India probe into Boeing 787 fuel control switches finds no issues Singapore Man charged over manufacturing DIY Kpods at Yishun home; first such case in Singapore Singapore Sex first, then you can sell my flat: Women property agents fend off indecent proposals and harassment Singapore Two women jailed for submitting fake university certificates to MOM for employment passes Singapore Fatal abuse of Myanmar maid in Bishan: Traffic Police officer sentenced to 10 years' jail Imports from the three nations combined were US$1.6 billion (S$2 billion) in 2024, up from US$289 million in 2022, according to the petitioners. 'We have always said, vigorous enforcement of our trade laws is critical to the success of this industry,' Mr Tim Brightbill, lead attorney for the petitioners, said in a statement. Most of the solar panels installed in the US are produced overseas. But US solar manufacturing capacity has grown meaningfully since the 2022 Inflation Reduction Act provided tax credits as an incentive to reduce reliance on Chinese-made goods. Panel capacity reached 50 gigawatts this year, up from 7GW in 2020, according to the Solar Energy Industries Association (SEIA). That is still not enough capacity to supply the US solar market, which is expected to install nearly 43GW of projects a year through 2030, according to SEIA. The Commerce Department has 20 days to decide whether to initiate an investigation into whether to impose tariffs. The agency was not immediately available for comment. Anti-dumping and countervailing trade cases typically take about a year to result in finalised tariffs. REUTERS
Time of India
2 days ago
- Business
- Time of India
US solar panel manufacturers seek tariffs on Indian imports
A group of US solar panel manufacturers asked the Commerce Department to impose anti-dumping and countervailing tariffs on imported goods from India, Indonesia and Laos, according to a Reuters report. The petition is the latest effort by the small U.S. solar manufacturing industry to seek trade relief to protect billions of dollars of investment and compete with goods produced mainly by Chinese companies overseas, Reuters said. The Alliance for American Solar Manufacturing and Trade, which filed the petition, includes First Solar, Hanwha's Qcells, Talon PV and Mission Solar.
Time of India
2 days ago
- Business
- Time of India
India should keep buying Russian oil despite US pressure, says GTRI
India should stand firm on its decision to continue buying oil from Russia and reject pressure from the United States to cut those imports, economic think tank Global Trade Research Initiative (GTRI) said on Thursday. According to GTRI founder Ajay Srivastava , discounted Russian crude has played a key role in helping India keep inflation in check and maintain macroeconomic stability despite global turbulence. Explore courses from Top Institutes in Select a Course Category 'India must reject this pressure and stay firm on its Russia strategy. Buying discounted Russian oil has helped India manage inflation and maintain economic stability in a volatile global environment,' Srivastava said. His remarks come amid reports that former US President Donald Trump has threatened to impose a 100 percent tariff on countries that continue to purchase Russian oil. Srivastava cautioned that changing course under external pressure won't help. 'Altering that policy will not stop US threats and it will only invite more,' he said, noting that Trump has a pattern of issuing tariff threats for various reasons. Live Events 'Given this pattern, India sees no value in giving in to US pressure on Russian oil. It won't resolve the larger issue of future unpredictable US demands. Even a trade deal with Washington won't guarantee protection, as Trump could shift the goalposts later,' Srivastava added. GTRI's comments underscore a growing sentiment in Indian policy circles: that strategic autonomy in energy policy is non-negotiable, even amid shifting geopolitical equations. With inputs from PTI
