Dumping threat looms elsewhere as India nears U.S. deal
At the same time, a multi-product, multi-country dumping threat looms over India. We should be watchful as China, Vietnam, Taiwan and others facing higher tariffs look to flood us with cheaper goods. While India reduces the tariff deficit with the US, it needs to offer calibrated concessions on select US goods like aerospace components. We should secure sector-specific exemptions, negotiate duty waivers for auto components and electronics, and diversify export markets away from the US, pursuing opportunities in the EU, the UK and ASEAN. Above all, India should strengthen domestic manufacturing, boost Make in India initiatives in key areas such as semiconductors, renewable energy and electronics to reduce import reliance and attract investments.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fibre2Fashion
29 minutes ago
- Fibre2Fashion
US AAFA writes to Massachusetts committee opposing The Fashion Act
The American Apparel & Footwear Association (AAFA) recently wrote to the Massachusetts joint committee on environment and natural resources sharing its concerns over The Fashion Act (H1032), aimed at environmental accountability in the fashion industry. While the legislation is well intended, it creates a costly and burdensome regulatory mechanism that cannot effectuate the results it seeks, AAFA noted. US trade body AAFA wrote to the Massachusetts joint committee on environment and natural resources sharing its concerns over The Fashion Act, aimed at environmental accountability in the fashion sector. The act creates a costly and burdensome regulatory mechanism that cannot effectuate the results it seeks, AAFA noted. It does not allow for full alignment with the Science-Based Targets Initiative. The act establishes requirements that do not align with standards and initiatives referenced in the act, as well as legislative and regulatory requirements to which the fashion industry is already subject, AAFA president and chief executive officer Steve Lamar wrote in the letter. This lack of harmonisation creates an unnecessarily complicated compliance framework for companies without providing a material sustainability benefit. In some instances, such conflicts can undermine the goals of the initiatives to which the legislation points, he noted. Harmonisation with European Union (EU) regulations will be critical and it will also be important to learn from what was unworkable for the EU, the letter said. The European Union's Corporate Sustainability Reporting Directive (which applies to many US companies, both in and outside the fashion sector) and the California Climate Corporate Data Accountability Act (SB 253) both currently require covered companies to report on their greenhouse gas emissions. The Fashion Act does not align with the established timelines or assurance levels in either piece of legislation. It does not align with other pending climate legislation in New York, New Jersey, Colorado or Illinois as well, AAFA remarked. While The Fashion Act requires fashion sellers to set targets, it does not actually allow for full alignment with the Science-Based Targets Initiative (SBTi) . The act prohibits some sellers from using intensity-based targets, even though SBTi validates such targets, the AAFA letter said. Holding companies to absolute targets means mergers or acquisitions could put companies out of compliance, while divestment of business would give the appearance of emissions reduction without actual achievement, the letter noted. The act provides overly prescriptive data collection requirements that are not required by SBTi, and are not actually implementable, AAFA observed. Despite the industry adhering to dozens of chemical regulations across the globe, The Fashion Act piles additional, impractical requirements that are not aligned with existing programmes and would actually discourage the addition and detection of new chemicals in wastewater, Lamar wrote. 'Sales of fashion products by third-party sellers on online marketplaces would be exempt from the requirements under the bill as it is written. If the intention of the legislation is to make marketplaces clean up their production, this bill misses the mark. With third-party sales expected to comprise almost two thirds of all e-commerce sales by 2027, this represents a significant omission,' the AAFA letter mentioned. Finally, the legislation provides no incentives, no diplomatic or technical support and no guidance for the industry to achieve its objectives, it added. Fibre2Fashion News Desk (DS)
&w=3840&q=100)
First Post
an hour ago
- First Post
Trump's July 9 tariff deadline looms: Which countries will get a deal?
As US President Donald Trump's July 9 tariff deadline nears, countries including Japan, India, and the EU are scrambling to strike last-minute trade deals. Washington could either finalise limited agreements, extend the tariff pause, or reimpose steep duties — some as high as 50 per cent — on economies it sees as uncooperative. Which nations will escape the tariff hike? read more US President Donald Trump holds a chart next to US Secretary of Commerce Howard Lutnick as Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, DC, US, April 2, 2025. File Image/Reuters As the July 9 deadline approaches for United States President Donald Trump to reimpose sweeping tariffs on multiple economies — including Japan and the European Union — several countries are still racing to secure agreements that could shield them from the harshest penalties. These tariffs stem from a package first announced in April, with Trump citing concerns over the absence of 'reciprocity' in America's trade relationships. Initially, a 10 per cent tariff was applied to most trading partners, with even steeper, customised duties set to follow for countries where the US runs large trade deficits. STORY CONTINUES BELOW THIS AD However, the full implementation was delayed until July to allow time for negotiations. Experts predict that countries will likely face one of three scenarios: concluding a preliminary agreement, obtaining a temporary reprieve from increased tariffs, or dealing with a sharp rise in levies. Lots of 'Framework' deals coming up 'There will be a group of deals that we will land before July 9,' Treasury Secretary Scott Bessent said on CNBC last Friday. Officials have not specified which countries fall under this category, but Bessent revealed that Washington has been aiming to finalise arrangements with around 18 major partners. 'Vietnam, India and Taiwan remain promising candidates for a deal,' Wendy Cutler, vice president at the Asia Society Policy Institute (ASPI), told AFP. If these countries do not reach a deal, Vietnam's reciprocal tariff would jump from 10 per cent to 46 per cent, India's to 26 per cent, and Taiwan's to 32 per cent. Josh Lipsky, international economics chair at the Atlantic Council, noted that Indian negotiators recently extended their US visit, saying it 'seems like a frontrunner.' 'Japan was in that category, but things have set back a little,' Lipsky added, pointing to Trump's criticism earlier this week accusing Japan of being unwilling to open its rice market to US exports. Analysts caution that these agreements are unlikely to be comprehensive trade deals, given the complex nature of such negotiations. So far, since April, Washington has only finalised an agreement with the UK and a temporary arrangement with China aimed at reducing reciprocal tariffs. Extended pause depends on Trump Bessent has also indicated that countries showing genuine effort in talks might retain the 10 per cent tariff rate for now. However, whether an extension on avoiding higher tariffs is granted will ultimately depend on Trump, he added. STORY CONTINUES BELOW THIS AD 'With a new government, (South) Korea looks well positioned to secure an extension,' ASPI's Cutler said. Lipsky anticipates that several nations will fall into this category, benefiting from a delay in heightened tariffs until Labor Day on September 1. Bessent previously said that Washington could complete its trade deal agenda by Labor Day, implying more deals could be finalised even if talks continue beyond July. Tariff reimposition for uncooperative nations For countries deemed uncooperative, Bessent has cautioned that the US could revert to the more severe tariff levels announced earlier, ranging from 11 per cent up to 50 per cent. Cutler noted that 'Japan's refusal to open its rice market, coupled with the US resistance to lowering automotive tariffs, may lead to the reimposition of Japan's 24 per cent reciprocal tariff.' On Tuesday, Trump remarked that a trade deal with Japan is unlikely and the country could face tariffs of '30 per cent, 35 per cent, or whatever the number is that we determine.' Lipsky believes the European Union also risks seeing its tariffs reset to either the 20 per cent rate proposed in April or the steeper 50 per cent rate recently mentioned by Trump. STORY CONTINUES BELOW THIS AD Digital policy is expected to be a friction point in US-EU talks. Trump recently announced that trade negotiations with Canada — which is not subject to the July 9 deadline — would be cancelled in response to Ottawa's digital services tax. Canada has since agreed to drop the measure. This week, EU trade chief Maros Sefcovic is visiting Washington in hopes of securing a deal, as the European Commission reviews early drafts of US proposals currently under discussion. Also Watch: With inputs from AFP
Time of India
an hour ago
- Time of India
India may be subject to lower US tariffs compared to APAC nations: Moody's
Moody's Ratings suggests India could benefit from tariff-driven shifts in investment and trade due to potentially lower tariffs compared to other Asia-Pacific nations. This advantage may attract investment and bolster India's development as a global manufacturing hub. Ongoing free trade agreement efforts with the UK and EU further support this potential, though US reshoring goals could pose a challenge. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads India may be subject to lower tariffs than many countries in the Asia Pacific, which could help the economy attract further investment and become a global manufacturing base Moody's Ratings said on its outlook on Asia Pacific sovereigns, Moody's Ratings said many export-reliant APAC economies were hit with very high US tariffs in negotiations will likely lead to some reduction in tariffs and other trade barriers on a bilateral basis, policy uncertainty is challenging investment decisions and disrupting about trade policy and a potential overhaul of global trade have raised cyclical and possibly structural credit risks in APAC, it said, adding that economies like Vietnam and Cambodia, which benefited from a diversification of investment and manufacturing out of China and now face high US tariffs, are particularly at risk."In contrast to countries like Cambodia and Vietnam, India has the potential to emerge as a beneficiary of a tariff-driven shift in investment and trade flows. India may be subject to lower tariffs than many in APAC, which could help the economy attract further investment flows and support its development as a global manufacturing base," Moody's Ratings signing of a free trade agreement with the UK in May and ongoing efforts to establish the same with the EU will further support such development. However, the US goal to reshore select manufacturing segments could challenge the extent to which India benefits, it April 2, the US imposed an additional 26 per cent reciprocal tariff on Indian goods but suspended it for 90 days. However, the 10 per cent baseline tariff imposed by America remains in place. India is seeking full exemption from the additional 26 per cent officials of India and the US are negotiating a proposed interim trade agreement between the two countries. While India is seeking greater market access for its labour-intensive goods, the US wants duty concessions for its agricultural talks are important as the suspension of US reciprocal tariffs is ending on July 9. The two sides are looking at finalising the talks before also said that potential shifts in investment and trade flows stemming from tariffs will take years to materialise, and it is unlikely that multinational companies will make drastic investment changes while there is still significant uncertainty about the magnitude of tariffs and whether they will persist."Instead, companies will likely slow or pause ongoing investments while they wait for a steady state on trade policies to emerge. Even then, any decision to relocate manufacturing or product sourcing will take years to execute," Moody's light of the weaker economic outlook, we expect the interest rate environment in APAC and globally to become more accommodative over the second half of 2025, Moody's said.
