Latest news with #US President
Yahoo
4 days ago
- Business
- Yahoo
Revealed: The true cost of Trump's tariffs on UK small businesses
A third of small UK businesses fear losing up to £20,000 this year amid the uncertainty caused by Donald Trump's new trade tariffs, a new report shows. Across April and May, the US President announced - and then called a pause for - levies being placed on all goods imported to the US from other nations, as part of a plan to readdress trade balances. While the UK has since arranged a trade deal with the nation, many other countries or blocs have not done so and there remains uncertainty within some industries. A new report looking at more than 500 small and medium enterprises (SMEs) across the UK has now revealed three in ten (30 per cent) estimate the cost of tariff knock-on effects to be between £10,000 and £20,000 this year, while two per cent believe it will cost them over £1m. Firms in the services sector are hardest hit, but across all sectors the average amount lost to tariff 'turbulence' is anticipated at £17,000 per business. One critical factor affecting those who import and export has been this year's volatile exchange rates, with £1 now equal to $1.358 - more than eight per cent higher than it was at the start of this year. Tariff business impact When the US President announced his tariffs, a stock market sell-off ensued - but it wasn't until bonds also sold off, sending yields (and therefore borrowing costs) higher, that he relented to a point. While those high-profile numbers were of course important, another key fluctuation came in the weakening of the dollar, which has lost ground all year. The US Dollar index measures the value of the currency against a mix of other global currencies, showcasing its faltering power in 2025. At the start of the year it stood at 108.49 on this index; it now stands at barely above 97, a deterioration of more than 10 per cent. If you are importing from the States, that is a positive - your pound buys more of US-based local goods, at least until sellers put prices up to account for the drop. For exporters, however, that is a big problem as it squeezes profit margins. A critical issue, particularly for smaller businesses, has been the rate of change and the lack of certainty about what is next. Responding to the survey undertaken by Critical Research, more than half (51 per cent) of businesses who export to the US said they expected a net decrease in volumes in future. Perhaps pointing to other geopolitical matters escalating, 47 per cent of all exporters - to the US or otherwise - said the same. New challenges Across all sectors, around 30 per cent of small and medium UK businesses export to the US. That figure is notably higher in retail and wholesale industries. They point to tariffs and customs regulations as the biggest issues facing them - as do importers, notably - ahead of such factors as inflation, global conflicts, costs of trading overseas and the impact of Brexit on their businesses. 'There's a lot of hidden activity - SME businesses are constantly dealing with change,' Jonathan Andrew, chief executive at Bibby Financial Services, told The Independent. 'Firms are making constant operational changes and even small businesses are having to assess how things impact on your own business. 'Doing nothing isn't an option - that's the reality of tariffs which is dawning now.' Many firms are opting to find new trade partners, the survey revealed, but they are now looking beyond the US in many cases - China was instead the most popular choice for both importers and exporters. Future As well as location, such global uncertainty means currency management is set to become a bigger factor for businesses too. 'SMEs are starting to pay more attention to foreign exchange. People have to think about revenue streams and where their income is from in currency terms, especially medium sized businesses,' Mr Andrew added. The UK's newly released industrial strategy said it is targeting 'long term stability' for businesses as a core focus. That will mean it will need to try and shield businesses working within those key industries from wider uncertainty, with recent trade deals - signed with the likes of India as well as the US - being one approach which can smooth the path for importers and exporters. But The Independent understands there are businesses now within the EU considering opening plants in the UK, as a potential easier route to exporting to the US. While that could yield an overall boost to potential economic growth, it could also heighten competition for those smaller domestic businesses already grappling with ever-changing conditions they are not always equipped to deal with. 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
CBC
4 days ago
- Business
- CBC
Fed chair Jerome Powell calls out Donald Trump
Andrew Chang explains what's behind a tense exchange between U.S. President Donald Trump and Federal Reserve chair Jerome Powell. Images provided by Getty Images, The Canadian Press and Reuters.
Yahoo
17-07-2025
- Business
- Yahoo
Trump says India and US very close to finalising trade deal
Washington and Delhi are "very close" to finalising a trade deal, US President Donald Trump has said, as high-level talks between the two sides continue. "We're very close to a deal with India where they open it [the market] up," Trump told reporters at the White house on Wednesday. Later in the day, he reiterated that the deal with India was "very close" when asked about upcoming trade agreements in an interview with broadcaster Real America's Voice. India and the US have been locked in intense negotiations over the past few months, aiming to reach an agreement before steep tariffs kick in. Trump had first announced 27% tariffs on Indian goods in 2 April as part of a wider trade policy move. While the tariffs were initially paused until 9 July, the US later extended the deadline to 1 August. An Indian delegation is in the US this week for discussions on the agreement, Reuters reported, citing sources in the Indian government. Last month, a team of Indian officials extended their stay in Washington for another round of talks, raising questions about what was holding up the agreement. Both sides have sounded optimistic about the deal. On Tuesday, Trump signalled a potential breakthrough, saying that the US would gain "access" to the Indian market as part of the agreement. Suggesting that the deal with India was following a similar track to a recent agreement with Indonesia, where Jakarta granted full access to American companies Trump said: "India is basically working along that same line. We are going to have access to India." Is the 'big, beautiful' India-US trade deal in trouble? Indian Commerce Minister Piyush Goyal said this week that talks are progressing at a fast pace. However, a couple of weeks ago, he had cautioned that India did not negotiate trade agreements based on deadlines and would only enter deals that served its national interest. While the two sides have been negotiating for months, key sticking points persist, particularly over agricultural access, auto components and tariffs on Indian steel. For years, Washington has pushed for greater access to India's farm sector, seeing it as a major untapped market. But India has fiercely protected it, citing food security, livelihoods and interests of millions of small farmers. Until recently, the US was India's largest trading partner, with bilateral trade reaching $190bn. Trump and Modi have set a target to more than double this figure to $500bn. India has already reduced tariffs on a range of goods - including Bourbon whiskey and motorcycles - but the US continues to run a $45bn (£33bn) trade deficit with India, which Trump is keen to reduce. Meanwhile, Trump has recently renewed his aggressive tariff plans from earlier this year. He has issued warning letters to dozens of countries, signalling his intent to impose steep tariffs starting 1 August. The list of targeted nations includes all of America's major trading partners - the European Union, Canada, Mexico, Japan and South Korea. On Wednesday, in addition to the deal with India, he said the US "could possibly make a deal with (the) EU" soon. Follow BBC News India on Instagram, YouTube, Twitter and Facebook. 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
BBC News
17-07-2025
- Business
- BBC News
India and US very close to finalising trade deal, says Trump
Washington and Delhi are "very close" to finalising a trade deal, US President Donald Trump has said, as high-level talks between the two sides continue."We're very close to a deal with India where they open it [the market] up," Trump told reporters at the White house on in the day, he reiterated that the deal with India was "very close" when asked about upcoming trade agreements in an interview with broadcaster Real America's and the US have been locked in intense negotiations over the past few months, aiming to reach an agreement before steep tariffs kick in. Trump had first announced 27% tariffs on Indian goods in 2 April as part of a wider trade policy move. While the tariffs were initially paused until 9 July, the US later extended the deadline to 1 Indian delegation is in the US this week for discussions on the agreement, Reuters reported, citing sources in the Indian government. Last month, a team of Indian officials extended their stay in Washington for another round of talks, raising questions about what was holding up the sides have sounded optimistic about the deal. On Tuesday, Trump signalled a potential breakthrough, saying that the US would gain "access" to the Indian market as part of the that the deal with India was following a similar track to a recent agreement with Indonesia, where Jakarta granted full access to American companies Trump said: "India is basically working along that same line. We are going to have access to India."Is the 'big, beautiful' India-US trade deal in trouble?Indian Commerce Minister Piyush Goyal said this week that talks are progressing at a fast pace. However, a couple of weeks ago, he had cautioned that India did not negotiate trade agreements based on deadlines and would only enter deals that served its national interest. While the two sides have been negotiating for months, key sticking points persist, particularly over agricultural access, auto components and tariffs on Indian years, Washington has pushed for greater access to India's farm sector, seeing it as a major untapped market. But India has fiercely protected it, citing food security, livelihoods and interests of millions of small recently, the US was India's largest trading partner, with bilateral trade reaching $190bn. Trump and Modi have set a target to more than double this figure to $500bn. India has already reduced tariffs on a range of goods - including Bourbon whiskey and motorcycles - but the US continues to run a $45bn (£33bn) trade deficit with India, which Trump is keen to reduce. Meanwhile, Trump has recently renewed his aggressive tariff plans from earlier this year. He has issued warning letters to dozens of countries, signalling his intent to impose steep tariffs starting 1 August. The list of targeted nations includes all of America's major trading partners - the European Union, Canada, Mexico, Japan and South Wednesday, in addition to the deal with India, he said the US "could possibly make a deal with (the) EU" BBC News India on Instagram, YouTube, Twitter and Facebook.
Malay Mail
16-07-2025
- Business
- Malay Mail
How tariffs and taxes could derail Malaysia's climate ambitions — Mogesh Sababathy
JULY 16 — At a time when Malaysia must accelerate its climate transition, can we afford foreign and domestic policy shocks that destabilize our climate finance and green technology agenda? The recent announcement by the US President Donald Trump to impose a sweeping 25 per cent tariff on 'any and all Malaysian products' starting August 1, 2025, has jolted Malaysia's economy and potentially, its entire energy transition trajectory. This move, posted not only threatens our US$80 billion annual trade relationship with the US, but risks undercutting the financial and industrial scaffolding needed to meet our net-zero ambitions by 2050. For a country that has pledged a 45 per cent reduction in carbon intensity by 2030, this is not just an economic setback but also a stress test of our climate governance, resilience, and readiness. The potential impact is immense. Sectors like electrical and electronics (E&E) which comprise nearly 40 per cent of our exports stand particularly exposed. With the Green Technology Master Plan relying heavily on E&E to drive decarbonised manufacturing, this development places our climate-linked industrial strategy in jeopardy. At the same time, Malaysia's expanded Sales and Service Tax (SST) which came into effect July 1, 2025 adds pressure from within. Over 4,800 previously exempt items, including industrial equipment and low-emission machinery, are now taxed at 8 per cent, up from the previous 6 per cent. While the SST expansion is projected to yield RM3 billion in additional revenue, its timing couldn't be worse. The Federation of Malaysian Manufacturers (FMM) warns that these cascading tax burdens will inflate costs, shrink margins, and deter future investment especially in capital-intensive green infrastructure. The National Energy Transition Roadmap (NETR), launched in 2023, sets ambitious targets: increasing renewable energy in the national mix to 70 per cent by 2050, developing CCUS (Carbon Capture, Utilisation & Storage), and attracting RM435 billion in investment. But these goals rely on a strong private sector, foreign direct investment, and investor confidence. Reduced export earnings due to tariffs, paired with higher domestic operating costs from the SST, could stall clean energy adoption, battery storage scaling, and smart grid investments. Small and medium green-tech enterprises already navigating tight financing margins may pivot to survival mode, postponing R&D or abandoning green upgrades entirely. This fiscal constriction directly threatens the creation of 23,000 green jobs forecasted under NETR, and it risks reducing Malaysia's contribution to global clean energy supply chains at a time when demand is rising. On the other hand, Malaysia's Voluntary Carbon Market (VCM), launched via the Bursa Carbon Exchange (BCX) in late 2022, was one of Southeast Asia's most promising climate finance innovations. With a projected market value of US$237 million by 2030, it was expected to fund reforestation, conservation, and industrial decarbonisation projects. However, the VCM and the upcoming carbon tax and Emissions Trading Scheme (ETS) under the National Climate Change Bill (Ruupin) are all sensitive to macroeconomic conditions. Historically, economic downturns or trade disruptions often lead governments to delay carbon pricing reforms in the name of economic recovery. Malaysia is no exception. Unless insulated, our carbon governance mechanisms may stall or regress under fiscal and political pressure just when they're needed to drive long-term decarbonisation and attract green capital. Climate change disproportionately affects the poorest and most vulnerable communities in Malaysia from coastal erosion in Sabah to urban flooding in KL. But so too will economic instability. Tariff-related export losses could result in job cuts in key industrial areas, while SST inflation will raise living costs. When people are forced to choose between short-term survival and long-term sustainability, the environment always loses. Without targeted support, our vision of a 'just transition' risks becoming rhetorical. The Ruupin framework, which emphasizes equity and protection for vulnerable populations, must be backed by resilient fiscal policy and progressive social safety nets not sacrificed in budget cuts driven by external shocks. Unless insulated, our carbon governance mechanisms may stall or regress under fiscal and political pressure just when they're needed to drive long-term decarbonisation and attract green capital. — Picture by Ahmad Zamzahuri In this regard, what can Malaysia do? Firstly, Malaysia must demand clarity on the tariff scope and seek exclusions for clean technology, solar components, and environmental goods, aligning with WTO environmental exceptions. Next, allocate funds from the new SST intake to fund VCM capacity-building, CCUS pilots, and green job retraining programs. SST exemptions or rebates for low-emission equipment, energy-efficient machinery, and carbon audit services must also be provided to incentivise clean industrial investments. Also, as the Chair of Asean this year, we also have an upper hand in using this moment to lead within Asean, pushing for regional carbon border adjustments and green mutual recognition agreements that support decarbonised exports. Lastly, fast-track funding for climate policy education, especially in carbon markets, climate law, and environmental economics, to prepare the next generation of climate experts. In conclusion, economic shocks will come and go. But the climate crisis is permanent and intensifying. As floods grow more frequent, air pollution worsens, and biodiversity collapses, the cost of inaction grows steeper each year. Trade policy and tax policy must serve, not sabotage our climate goals. Malaysia must not retreat from climate ambition in the face of tariffs or taxes. We must instead use these shocks to recalibrate our economic tools, reaffirm our global leadership in climate governance, and build a greener, more resilient Malaysia that doesn't trade short-term relief for long-term collapse. * Mogesh Sababathy is a National Consultative Panel Member to the Ministry of Natural Resources and Environmental Sustainability of Malaysia and a PhD Candidate at Universiti Putra Malaysia (UPM). ** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
