Latest news with #US-sold
Business Times
17 hours ago
- Business
- Business Times
Trump's tariff on India to do little to upset iPhone manufacturing plans
[BENGALURU] US President Donald Trump's 25 per cent tariffs on Indian goods will do little to slow the role of the country as a key hub for manufacturing iPhones, even when it means more expensive smartphones for US consumers, analysts and industry executives said. Apple has realigned its India exports to almost exclusively serve the US market, with nearly all the US$3.2 billion-worth iPhones exported by Foxconn from India going to the US between March and May. It's 'too early to say' if recent events or future changes in Trump's stance will alter Apple's manufacturing plans in India, an industry executive familiar with Apple's strategy said. 'These plans are made with a longer window.' Trump on Wednesday imposed a 25 per cent tariff on goods imported from the country, effective on Friday, a move that sent jitters across India Inc, though some view it as a negotiation tactic. For Apple, India is now central to its strategy of diversifying manufacturing beyond China, where geopolitical pressures have pushed it to consider alternative bases. India supplied 71 per cent of all iPhones sold in the US market between April and June, up from 31 per cent a year earlier, driven by a corresponding decline in shipments from China, according to Counterpoint Research. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Despite the newly announced tariffs, manufacturing iPhones in India would continue to remain cost-competitive, with expenses lower than when Apple began production there eight years ago, narrowing the cost gap with China, analysts said. Factors like growing local component availability, federal government incentives, and wages nearly half those in China have positioned India as one of the top two iPhone-producing countries, alongside China. 'Making supply chain adjustments, particularly with new iPhone models nearing release, is unlikely due to the complex factors involved. It is expected to be business as usual, especially with a resilient supply chain like Apple,' said Tarun Pathak, a research director at Counterpoint. Trump's ire Trump has repeatedly targeted Apple for making US-sold iPhones outside the country by threats including company-specific tariffs, but hurdles like high costs, technological shortcomings, and legal issues have stood in the way. In May, he recalled telling Apple CEO Tim Cook: 'we put up with all the plants you built in China for years ... we are not interested in you building in India, India can take care of themselves'. Apple would rather absorb the higher costs for iPhones sold in the US than to slam the brakes on its India expansion, said Faisal Kawoosa, chief analyst at Indian research firm Techarc. 'Given that sales in the US are largely operator-driven and sold as part of plans, it might mean adding a few more US dollars to monthly plans rather than giving an upfront blow to consumers'. REUTERS
News18
a day ago
- Health
- News18
What is Cane Sugar Coke or Mexican Coke That Coca-Cola Reportedly Uses?
The US President Donald Trump has claimed that Coca-Cola has committed to using real cane sugar in its American-sold beverages. The United States President Donald Trump recently announced that soft drink company Coca-Cola had committed to replacing high-fructose corn syrup with 'real" cane sugar in its US-sold beverages. Although Coca-Cola has not officially confirmed the decision, the company acknowledged conversations and promised more information shortly. President Trump's announcement about Coca-Cola's potential switch to cane sugar has sparked curiosity has led to a resurgence of interest in 'cane sugar Coke" and its cult beverage, 'Mexican Coke," which are both popular among soda lovers and health-conscious consumers due to their crispier, cleaner flavour. Despite the emerging curiosity and Coca-Cola's acknowledgement, health experts warn that cane sugar might not be much healthier than high-fructose corn syrup. What is cane sugar Coke or Mexican Coke? A Coca-Cola variation sweetened with real cane sugar instead of high-fructose corn syrup (HFCS) is referred to as 'Cane sugar Coke," or 'Mexican Coke" in the US. It is marketed as 'Mexican Coke" because it is made in Mexico and exported to other nations, particularly the US, where HFCS is more often found in soft beverages. It is easily identifiable by its unique 355 ml curved glass bottles. Mexican Coke is the most popular type of cane sugar Coke in the US market. Is Cane Sugar Coke Healthier than ordinary Coke? Not significantly. Both types are sugary sodas that contain almost the same amount of sugar and calories. Health experts warn that while many people consider cane sugar Coke to be a more 'natural" option, it might not provide any significant health benefits over standard Coke prepared with high-fructose corn syrup (HFCS). Both HFCS and cane sugar (sucrose) are added sugars that provide almost the same number of calories and, when taken in excess, cause weight gain, diabetes, insulin resistance, and heart disease. Mexican Coke is made with carbonated water, sugar, phosphoric acid, caramel colour, natural flavours, and caffeine, while American Coke contains high fructose corn syrup, carbonated water, phosphoric acid, caramel colour, natural flavours, and caffeine. Experts claim that both sweeteners include 'empty calories," or calories with little or no nutritional value, and that they quickly raise blood sugar levels. Therefore, replacing one sugar with another does not make a sweet soda much healthier, even though cane sugar may taste cleaner. President Donald Trump recently announced that Coca-Cola has committed to using 'real" cane sugar in place of high-fructose corn syrup (HFCS) in its US products. Trump applauded business leaders and linked the shift to his administration's 'Make America Healthy Again" (MAHA) program on Truth Social. The soft-drink giant acknowledged discussions and promised more information shortly, but it has not officially confirmed the switch. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
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Business Standard
4 days ago
- Business
- Business Standard
Explained: What is the new 15% US-EU tariff deal and what does it cover?
US President Donald Trump and European Commission President Ursula von der Leyen on Sunday, July 27, announced a wide-ranging trade agreement that imposes a 15 per cent tariff on most European imports into the US. The deal, which was finalised during a brief meeting at Trump's Turnberry golf resort in Scotland, averted the looming threat of a 30 per cent tariff that was set to take effect on August 1. While the headline tariff rate is fixed at 15 per cent, many of the agreement's finer details are still unclear. The deal includes zero tariffs on select 'strategic goods' such as aircraft and aircraft parts, certain chemicals, semiconductor equipment, some agricultural products, and critical raw materials. However, pharmaceuticals, steel, and some farm goods remain outside the scope of this agreement. What is not included in the deal? While the agreement removes immediate tariff threats, several issues remain unresolved. Trump confirmed that the existing 50 per cent US tariff on imported steel will stay in place. Talks will continue on setting steel import quotas and reducing overcapacity in the global market. Pharmaceuticals were not included in this agreement. Von der Leyen clarified that those discussions are ongoing, separate from Sunday's deal. Tariffs on some EU agricultural products also remain unchanged, but with no clear indication of which items are excluded. What impact will the agreement have? The 15 per cent tariff is a significant increase from the pre-Trump average US tariff of about 1 per cent on European goods and above the 10 per cent baseline tariff applied during negotiations. For European exporters, the impact could be considerable as many companies will face the difficult choice of either passing the cost on to US consumers or absorbing losses. The earlier 10 per cent tariff was already enough to prompt the European Commission to slash its growth forecast from 1.3 per cent to 0.9 per cent. Now, with 15 per cent, German industry leaders warn of 'immense negative effects' on export-reliant sectors. Von der Leyen defended the deal, calling it 'the best we could do' and noting that it secures continued access to the US market and brings a degree of stability. How are different sectors reacting, especially carmakers? The car industry, which was gearing for a 30 per cent tariff, sees the 15 per cent rate as a relief. Von der Leyen pointed out that the new rate is significantly lower than the current 27.5 per cent tariff on cars from all countries — which includes Trump's 25 per cent tariff and the pre-existing 2.5 per cent US auto tariff. Still, European automakers remain under pressure. Volkswagen revealed it had already lost $1.5 billion in profits in the first half of the year due to higher US tariffs. Mercedes-Benz, which produces a significant share of its US-sold vehicles in Alabama, said price hikes are likely for future model years. What were the key issues dividing the two sides? Before Trump's presidency, US-EU tariffs were relatively low. According to the Brussels-based Bruegel think tank, the US averaged a 1.47 per cent tariff on European goods, while the EU imposed 1.35 per cent on American products, Associated Press reported. Trump frequently criticised the $235 billion US merchandise trade deficit with the EU, calling the European market unfair — particularly in the automotive sector. However, the EU argues that the US enjoys a substantial surplus in services like cloud computing, travel, and financial services, which helps offset the imbalance. Despite Trump's stance that the EU 'was formed to screw the United States', both sides have recognised the need to preserve their trading relationship. With $2 trillion in annual commerce, the US and EU form the world's largest bilateral trading bloc. How did the deal come together? The last-minute breakthrough came just days before the US deadline to impose new tariffs. Trump and von der Leyen held brief talks at Trump's golf resort in Scotland, joined by top EU trade officials. Commerce Secretary Howard Lutnick said the August 1 deadline was firm. 'No extensions, no more grace periods,' he said. Yet he said that Trump remained open to future dialogue. The EU had prepared its own list of retaliatory tariffs targeting hundreds of US goods, including beef, auto parts, beer, and even Boeing aircraft. Without a deal, everything from French cheese to German electronics could have become more expensive for American consumers. What are the concerns going forward? While the agreement avoided an immediate trade war, analysts caution that the deal remains vague in parts. 'There is nothing on paper, yet,' said ING's global chief of macro Carsten Brzeski. He warned that the lack of formal documentation makes enforcement and interpretation difficult. German Chancellor Friedrich Merz praised the outcome for preserving 'core interests' but expressed disappointment that deeper tariff relief wasn't achieved. (With agency inputs)
New Straits Times
24-07-2025
- Automotive
- New Straits Times
Japan trade deal sparks hope for US investors, frustration for automakers
DETROIT: Shares of General Motors, Ford Motor, and Jeep-maker Stellantis, some of the biggest automakers in the US, rallied on Wednesday after news of a trade deal that will reduce tariffs on imported Japanese cars, as investors saw it as a sign of more deals to come. But the companies are not celebrating. Automakers importing vehicles into the US from Japan now face a 15 per cent levy, according to terms of the deal outlined on Tuesday by US President Donald Trump, down from 27.5 per cent. GM shares rallied 9 per cent and Stellantis rose 12 per cent, as market watchers said they anticipated further agreements could reduce other trade barriers that have hurt the companies' profits. Ford shares rose about 2 per cent. The automaker is less exposed to tariffs because it produces more of its US-sold vehicles domestically. On Wednesday, the European Union and United States were nearing a trade deal that would also set a 15 per cent tariff on European imports. GM, Ford and Stellantis have been paying up to 25 per cent on vehicles imported from Mexico or Canada, depending on how much US content is in the vehicles. The companies are concerned they could soon be paying higher tariffs on vehicles assembled in Mexico or Canada than on vehicles with significantly less US content made in Japan or the United Kingdom. Some lobbyists also expressed alarm that if South Korea strikes a similar deal with the US, it could become a low-cost market to assemble cars and trucks. "They could be the new Mexico," one lobbyist told Reuters. The American Automotive Policy Council, which represents the Detroit Three, criticised the deal, saying it creates an easier path for Japanese imports than for some cars built in North America. Even before Tuesday's deal, Detroit automotive executives raised concerns that Trump's trade policy could end up giving an edge to foreign automakers who do not invest as heavily in US manufacturing. "This is a bonanza for our import competitors," Ford CEO Jim Farley said in February, when Trump initially proposed levies on Mexico and Canada, but not on major automotive centres such as South Korea. The United Auto Workers union, which represents workers at the Detroit Three automakers, said it was "deeply angered" by the deal. "What we've seen so far makes one thing clear: American workers are once again being left behind," the union said in a statement on Wednesday evening. The Japan trade announcement came the same day General Motors said tariff costs knocked US$1.1 billion from its bottom line, hurt by a battery of levies including 25 per cent taxes on imports from Canada and Mexico, and 50 per cent on steel and aluminium imports. Industry consultant and former GM executive Warren Browne said the Japan deal "put all vehicles produced in Mexico and Canada by the Detroit Three at a disadvantage" because they face higher levies than Toyota vehicles shipped in from Japan, for example. That could allow the foreign brands to undercut US car companies on price. Toyota, Subaru and Mazda are among the most reliant companies on Japan-produced vehicles for their US sales, and stand to benefit most from the lower tariffs, according to business-analytics firm GlobalData. Toyota imported roughly 500,000 vehicles from Japan last year. Japanese automotive stocks soared after the trade deal announcement. Autos Drive America, which represents those Japanese automakers along with other foreign car companies operating in the US, on Wednesday praised the trade deal, saying it would lead to further factory investment in the US. The deal is good news for Wade Kawasaki, executive chairman of the Wheel Group, a collection of aftermarket wheel, tyre and accessory companies based in California. Kawasaki said the group has been trying to break into some aspects of the Japanese market, and the lessening levies will help with that. "There is a certain group of customers who want American-made products. Those are the ones we were going to get," he said.
Business Times
24-07-2025
- Automotive
- Business Times
Japan trade deal sparks hope for US investors, frustration for automakers
[DETROIT] Shares of General Motors, Ford Motor and Jeep-maker Stellantis, some of the biggest automakers in the US, rallied on Wednesday after news of a trade deal that will reduce tariffs on imported Japanese cars, as investors saw it as a sign of more deals to come. But the companies are not celebrating. Automakers importing vehicles into the US from Japan now face a 15 per cent levy, according to terms of the deal outlined on Tuesday by US President Donald Trump, down from 27.5 per cent. GM shares rallied 9 per cent and Stellantis rose 12 per cent, as market watchers said they anticipated further agreements could reduce other trade barriers that have hurt the companies' profits. Ford shares rose about 2 per cent. The automaker is less exposed to tariffs because it produces more of its US-sold vehicles domestically. On Wednesday, the European Union and United States were nearing a trade deal that would also set a 15 per cent tariff on European imports. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up GM, Ford and Stellantis have been paying up to 25 per cent on vehicles imported from Mexico or Canada, depending on how much US content is in the vehicles. The companies are concerned they could soon be paying higher tariffs on vehicles assembled in Mexico or Canada than on vehicles with significantly less US content made in Japan or the United Kingdom. Some lobbyists also expressed alarm that if South Korea strikes a similar deal with the US, it could become a low-cost market to assemble cars and trucks. 'They could be the new Mexico,' one lobbyist told Reuters. The American Automotive Policy Council, which represents the Detroit Three, criticised the deal, saying it creates an easier path for Japanese imports than for some cars built in North America. Even before Tuesday's deal, Detroit automotive executives raised concerns that Trump's trade policy could end up giving an edge to foreign automakers who do not invest as heavily in US manufacturing. 'This is a bonanza for our import competitors,' Ford CEO Jim Farley said in February, when Trump initially proposed levies on Mexico and Canada, but not on major automotive centres such as South Korea. The United Auto Workers union, which represents workers at the Detroit Three automakers, said it was 'deeply angered' by the deal. 'What we've seen so far makes one thing clear: American workers are once again being left behind,' the union said in a statement on Wednesday evening. The Japan trade announcement came the same day General Motors said tariff costs knocked US$1.1 billion from its bottom line, hurt by a battery of levies including 25 per cent taxes on imports from Canada and Mexico, and 50 per cent on steel and aluminum imports. Industry consultant and former GM executive Warren Browne said the Japan deal 'put all vehicles produced in Mexico and Canada by the Detroit Three at a disadvantage' because they face higher levies than Toyota vehicles shipped in from Japan, for example. That could allow the foreign brands to undercut US car companies on price. Toyota, Subaru and Mazda are among the most reliant companies on Japan-produced vehicles for their US sales, and stand to benefit most from the lower tariffs, according to business-analytics firm GlobalData. Toyota imported roughly 500,000 vehicles from Japan last year. Japanese automotive stocks soared after the trade deal announcement. Autos Drive America, which represents those Japanese automakers along with other foreign car companies operating in the United States, on Wednesday praised the trade deal, saying it would lead to further factory investment in the US The deal is good news for Wade Kawasaki, executive chairman of the Wheel Group, a collection of aftermarket wheel, tire and accessory companies based in California. Kawasaki said the group has been trying to break into some aspects of the Japanese market, and the lessening levies will help with that. 'There is a certain group of customers who want American-made products. Those are the ones we were going to get,' he said. REUTERS
