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Hans India
17 hours ago
- Business
- Hans India
India stands to gain much more from Trump's trade war
Every crisis, they say, brings with it an opportunity. This adage has once again proven true in the context of the global trade realignment triggered by US President Donald Trump's aggressive trade war, particularly targeting China. While his protectionist policies were initially met with alarm and described in apocalyptic terms by many economists and commentators, some countries, including India, have emerged as beneficiaries of the ensuing shift in global supply chains. India's exports to the United States registered a modest but significant increase, as traditional trade giants such as China, Mexico, and Canada have lost ground. According to data released by the US Census Bureau, India's share of US imports increased to 3.1 per cent during the first five months of 2025, up from 2.9 per cent during the same period in the previous year. This uptick, though small in absolute terms, is indicative of a broader trend-India's growing relevance in global trade as US companies seek to diversify their sourcing away from China. Other beneficiaries include Switzerland and Taiwan, with the former registering a 3.3 percentage point rise in its share of US imports. In contrast, China's share declined by 2.7 percentage points during this period. The redirection of trade flows has been particularly noticeable in key sectors such as electronics and textiles, where India has made noteworthy gains. The country also saw encouraging movement in the high-value segment. Its share in US imports of advanced technology products climbed from 2.3 per cent to 3.5 per cent in 2025. Much of this increase can be attributed to gains in electronics, particularly mobile phones and solar cells. It should be noted that between June 2024 and May 2025, India's share of US electronics imports more than doubled—from 3.5 per cent to 7.2 per cent. In contrast, China's share halved to 11 per cent. Even Mexico and Vietnam also capitalised on this shift. In textiles, the story is similar. China's share of US textile imports dropped significantly—from 27 per cent in June 2024 to 14 per cent by May 2025. India's performance, while not as dramatic, was still impressive: its share rose from 9 per cent to 12 per cent during the same period. Vietnam once again emerged as a strong contender, increasing its share from 14 per cent to 18 per cent. These shifts underline the growing appetite among American firms for alternative sources of imports as they attempt to reduce dependency on China amid geopolitical tensions. For India, this presents a golden opportunity to reposition itself as a key global manufacturing hub. But seizing this opportunity requires more than just favourable global circumstances; it also necessitates sustained domestic effort. Policymakers must now double down on strategies to enhance its manufacturing ecosystem. This means pushing forward with reforms to make doing business easier, investing in infrastructure, and addressing bottlenecks in logistics and energy supply. Further, efforts should be fine-tuned to ensure long-term gains. Moreover, India must not merely aim to be a substitute for China; it must aspire to compete with the best globally. This involves fostering innovation, supporting SMEs, improving workforce skills, and entering into smart trade agreements for wider market access. In a nutshell, while global trade disruptions have offered India an opening, it is the policy response at home that will determine whether the gains are fleeting or the foundation of long-term transformation.
Time of India
a day ago
- Business
- Time of India
Trump strikes tariff deal with Japan, auto stocks surge
US President Donald Trump struck a trade deal with Japan that lowers tariffs on auto imports and spares Tokyo from punishing new levies on other goods in exchange for a $550 billion package of US -bound investment and loans. It is the most significant of a clutch of agreements that Trump has bagged since unveiling sweeping global levies in April, though like other deals, exact details remained unclear. Japan's auto sector, which accounts for more than a quarter of its US exports, will see existing tariffs cut to 15 per cent from levies totaling 27.5 per cent previously. Duties that were due to come into effect on other Japanese goods from August 1 will also be cut to 15 per cent from 25%. The announcement sent Japan's benchmark Nikkei stock index climbing almost 4 per cent to its highest in a year, led by stocks in automakers with Toyota up more than 14 per cent and Honda nearly 11%. "I just signed the largest TRADE DEAL in history with Japan," Trump said on his Truth Social platform. "This is a very exciting time for the United States of America, and especially for the fact that we will continue to always have a great relationship with the Country of Japan," he added. Japanese Prime Minister Shigeru Ishiba, who denied reports on Wednesday that he had decided to quit following a bruising election defeat, hailed the tariff agreement as "the lowest rate ever applied among countries that have a trade surplus with the US " Two-way trade between the two countries reached nearly $230 billion in 2024, with Japan running a trade surplus of nearly $70 billion. Japan is the fifth-largest US trading partner in goods, US Census Bureau data show. The US investment package includes loans and guarantees from Japanese government-affiliated institutions of up to $550 billion to enable Japanese firms "to build resilient supply chains in key sectors like pharmaceuticals and semiconductors," Ishiba said. Japan will also increase purchases of agricultural products such as US rice, a Trump administration official said. Ishiba said the share of US rice imports may increase under its existing framework but that the agreement did "not sacrifice" Japanese agriculture. Bank of Japan Deputy Governor Shinichi Uchida called the deal "very big progress" and said it reduces uncertainty over the economic outlook. Some economists had forecast the tariffs could have tipped Japan - the world's fourth-largest economy - into recession. Keidanren, Japan's biggest business lobby, welcomed the deal, saying it was a recognition of the significant contributions Japanese companies have made to the US economy and society. The exuberance in financial markets spread to shares of South Korean and European carmakers, as the Japan deal stoked optimism that they could strike similar deals. But US automakers signaled their unhappiness with the deal, raising concerns about a trade regime that cuts tariffs on Japanese auto imports while leaving tariffs on imports from their plants and suppliers in Canada and Mexico at 25%. "Any deal that charges a lower tariff for Japanese imports with virtually no US content than the tariff imposed on North American-built vehicles with high US content is a bad deal for US industry and US auto workers," said Matt Blunt, who heads the American Automotive Policy Council, which represents General Motors Ford and Chrysler parent Stellantis . "#Mission Complete," Japan's top trade negotiator Ryosei Akazawa wrote on X following a meeting with Trump at the White House on Tuesday. Akazawa later said the deal does not cover Japanese exports of steel and aluminum, currently subject to a 50 per cent tariff. As part of the agreement, Japan will drop additional safety tests currently imposed on imported US cars and trucks, Akazawa added, requirements that Trump has said limit sales of American-made autos there. Some last-minute negotiations over the eye-catching investment package appear to have helped seal the deal, a photo of Akazawa's meeting with Trump posted by one of his aides showed. The photo posted on X by Trump's assistant Dan Scavino, pictured the president seated opposite Akazawa with a document titled 'Japan Invest America' in front of him. A sum of "$400B" written in large letters on the document was scored out, with "$500" hand-written above it. Japan is the largest foreign investor in the United States, according to US government data, with an investment position of $819 billion at the end of 2024. Speaking later at the White House, Trump also expressed fresh optimism that Japan would form a joint venture with Washington to support a gas pipeline in Alaska long sought by his administration. Trump aides are feverishly working to close trade deals ahead of an August 1 deadline that Trump has repeatedly pushed back under pressure from markets and intense lobbying by industry. By that date, countries are set to face steep new tariffs beyond those Trump has already imposed since taking office in January. Trump has announced framework agreements with Britain, Vietnam, Indonesia and paused a tit-for-tat tariff battle with China, though details are still to be worked out with all of those countries. At the White House, Trump said negotiators from the European Union would be in Washington on Wednesday.
Fibre2Fashion
a day ago
- Business
- Fibre2Fashion
Trump announces trade deal with Japan, Philippines
US President Donald Trump has announced a trade framework with Japan, imposing a 15-per cent reciprocal tariff on goods imported from the latter. 'We just completed a massive Deal with Japan, perhaps the largest Deal ever made. Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90 per cent of the Profits,' Trump posted on his social networking platform Truth Social. President Donald Trump has announced a trade framework with Japan, imposing a 15-per cent reciprocal tariff on goods imported from the US. Japan will invest $550 into the US, which will receive 90 per cent of the profits, Trump posted on Truth Social. He also announced a trade deal with the Philippines that would impose a tariff of 19 per cent on its goods, while US items would face no tariffs. 'This Deal will create Hundreds of Thousands of Jobs—There has never been anything like it,' he noted. The United States 'will continue to always have a great relationship with the Country of Japan,' he added. Japan would open its economy to American autos and rice, the President's post said. The 15-per cent tariff on goods imported from Japan is less than the 25-per cent rate that Trump, in a recent letter to Japanese Prime Minister Shigeru Ishiba, said would be levied beginning August 1. Important details of the deal, however, remained unclear from his social media post. Trump also announced a trade framework with the Philippines that would impose a tariff of 19 per cent on its goods, while American products exported to that country would face no tariffs. He also reaffirmed his 19-per cent tariffs on Indonesia. The United States ran a $69.4 billion trade imbalance on goods with Japan last year, according to the US Census Bureau. It had a trade imbalance of $17.9 billion with Indonesia and an imbalance of $4.9 billion with the Philippines. Fibre2Fashion News Desk (DS)
New Straits Times
2 days ago
- Business
- New Straits Times
Trump says trade deal struck with Japan includes 15pct tariff
WASHINGTON/TOKYO: President Donald Trump on Tuesday said the US and Japan have struck a deal that will lower the hefty tariffs Trump had threatened to impose on goods from its Asian ally while extracting commitments for Japan to invest US$550 billion in the US and open its markets to American goods. The agreement - including a 15 per cent tariff on all imported Japanese goods, down from a proposed 25 per cernt - is the most significant of the string of trade deals the White House has reached ahead of an approaching August 1 deadline for higher levies to kick in. "This is a very exciting time for the United States of America, and especially for the fact that we will continue to always have a great relationship with the Country of Japan," Trump said on his Truth Social platform. Trump's announcement included few details, and he made no mention of easing tariffs on Japanese automobiles, which account for more than a quarter of all the country's exports to the United States and are subject to a 25 per cent tariff. The deal lowers the auto tariff to 15 per cent, according to industry and government officials briefed on the agreement. Two-way trade between the two countries totaled nearly US$230 billion in 2024, with Japan running a trade surplus of nearly US$70 billion. Japan is the fifth-largest US trading partner in goods, US Census Bureau data show. The announcement sent stocks in Japan higher, led by big gains in automakers as Honda, Toyota and Nissan all gained 8 per cent or more, and US equity index futures gained ground. The yen strengthened against the dollar. Reuters could not immediately confirm the elements of the deal announced by Trump, and details were scant. The White House did not immediately respond to a request for additional details. Speaking early on Wednesday in Tokyo, Japanese Prime Minister Shigeru Ishiba said he had received an initial report from his trade negotiator in Washington but declined to comment on the specifics of the negotiation. Ishiba is under intense political pressure in Japan, where the ruling coalition was set back by losing control of the upper house in an election on Sunday. Ishiba said he couldn't say how a trade deal would affect his decision on whether to step down from office until he saw the details. 'MISSON COMPLETE' Trump's announcement followed a meeting with Japan's top tariff negotiator, Ryosei Akazawa, at the White House on Tuesday, according to a person familiar with the matter. "#Mission Complete," Akazawa wrote on X. Kazutaka Maeda, an economist at Meiji Yasuda Research Institute, said that "with the 15 per cent tariff rate, I expect the Japanese economy to avoid recession." The deal was "a better outcome" for Japan than it potentially could have been, given Trump's earlier unilateral tariff threats, said Kristina Clifton, a senior economist at the Commonwealth Bank of Australia in Sydney. "Steel, aluminium, and also cars are important exports for Japan, so it'll be interesting to see if there's any specific carve-outs for those," Clifton said. Autos are a huge part of US-Japan trade, but is almost all one way to the U.S. from Japan, a fact that has long irked Trump. In 2024, the US imported more than US$55 billion of vehicles and automotive parts while just over US$2 billion were sold into the Japanese market from the US. Speaking later at the White House, Trump also expressed fresh optimism that Japan would form a joint venture with Washington to support a gas pipeline in Alaska long sought by his administration. "We concluded the one deal ... and now we're going to conclude another one because they're forming a joint venture with us at, in Alaska, as you know, for the LNG," Trump told lawmakers at the White House. "They're all set to make that deal now." Japanese officials had initially doubted the practicality of the project but warmed to it - and a range of other investments dear to Trump - as a potential incentive to resolve trade disputes with Washington. Trump aides are feverishly working to close trade deals ahead of an August 1 deadline that Trump has repeatedly pushed back under pressure from markets and intense lobbying by industry. By that date, countries are set to face steep new tariffs beyond those Trump has already imposed since taking office in January. While Trump has said that unilateral letters declaring what rate would be imposed are tantamount to a deal, his team has nonetheless raced to close agreements. Trump has announced framework agreements with Britain, Vietnam, Indonesia and paused a tit-for-tat tariff battle with China, though details are still to be worked out with all of those countries. At the White House, Trump said negotiators from the European Union would be in Washington on Wednesday. Trump's announcement on Tuesday was of a pattern with some previous agreements. He announced the deal on social media shortly after a meeting or a phone call with a foreign official, leaving many key details a mystery, and before the other country issued its own proclamations. Nearly three weeks after Trump announced an agreement with Vietnam - in similar fashion - no formal statement has been released by either country spelling out the particulars of the deal that was ostensibly reached.
AsiaOne
2 days ago
- Business
- AsiaOne
Trump says trade deal struck with Japan includes 15% tariff, Money News
WASHINGTON/TOKYO — President Donald Trump on Tuesday (July 22) said the US and Japan had struck a trade deal that includes a lower 15 per cent tariff that will be levied on US imports from the country, including autos. In a post on Truth Social, Trump said the deal would include US$550 billion (S$703 billion) of Japanese investments in the United States. He also said that Japan would increase market access to American producers of cars, trucks, rice and certain agricultural products, among other items. Trump's post made no mention of easing tariffs on Japanese motor vehicles, which account for more than a quarter of all the country's exports to the United States and are subject to a 25 per cent tariff. But NHK reported that the deal lowers the auto tariff to 15 per cent, citing a Japanese government official. "This is a very exciting time for the United States of America, and especially for the fact that we will continue to always have a great relationship with the Country of Japan," Trump said on the social media platform. Japan is the most significant of the clutch of deals Trump has struck so far, with two-way trade in goods between the two superpowers totaling nearly $230 billion in 2024, and Japan running a trade surplus of nearly $70 billion. Japan is the fifth-largest US trading partner in goods, US Census Bureau data show. The announcement sent stocks in Japan higher, led by big gains in automakers as Honda, Toyota and Nissan all gained six per cent or more, and US equity index futures gained ground. The yen strengthened against the dollar. Reuters could not immediately confirm the elements of the deal announced by Trump, and details were scant. The White House did not immediately respond to a request for additional details. Speaking early on Wednesday in Tokyo, Japanese Prime Minister Shigeru Ishiba said he had received an initial report from his trade negotiator in Washington but declined to comment on the specifics of the negotiation. Ishiba is under intense political pressure in Japan, where the ruling coalition was set back by losing control of the upper house in an election on Sunday. Ishiba said he couldn't say how a trade deal would affect his decision on whether to step down from office until he saw the details. 'Mission complete' Trump's announcement followed a meeting with Japan's top tariff negotiator, Ryosei Akazawa, at the White House on Tuesday, according to a person familiar with the matter. "#Mission Complete," Akazawa wrote on X. Kazutaka Maeda, an economist at Meiji Yasuda Research Institute, said that "with the 15 per cent tariff rate, I expect the Japanese economy to avoid recession". The deal was "a better outcome" for Japan than it potentially could have been, given Trump's earlier tariff threats, said Kristina Clifton, a senior economist at the Commonwealth Bank of Australia in Sydney. "Steel, aluminium, and also cars are important exports for Japan, so it'll be interesting to see if there's any specific carve-outs for those," Clifton said. Autos are a huge part of US-Japan trade, but is almost all one way to the US from Japan, a fact that has long irked Trump. In 2024, the US imported more than $55 billion of vehicles and automotive parts while just over $2 billion were sold into the Japanese market from the US. Speaking later at the White House, Trump also expressed fresh optimism that Japan would form a joint venture with Washington to support a gas pipeline in Alaska long sought by his administration. Japanese officials had initially doubted the practicality of the project but warmed to it — and a range of other investments dear to Trump — as a potential incentive to resolve trade disputes with Washington. Trump aides are feverishly working to close trade deals ahead of an Aug 1 deadline that Trump has repeatedly pushed back under pressure from markets and intense lobbying by industry. By that date, countries are set to face steep new tariffs beyond those Trump has already imposed since taking office in January. While Trump has said that unilateral letters declaring what rate would be imposed are tantamount to a deal, his team has nonetheless raced to close agreements. Trump has announced framework agreements with Britain, Vietnam, Indonesia and paused a tit-for-tat tariff battle with China, though details are still to be worked out with all of those countries. At the White House, Trump said negotiators from the European Union would be in Washington on Wednesday. Trump's announcement on Tuesday was of a pattern with some previous agreements. He announced the deal on social media shortly after a meeting or a phone call with a foreign official, leaving many key details a mystery, and before the other country issued its own proclamations. Nearly three weeks after Trump announced an agreement with Vietnam — in similar fashion — no formal statement has been released by either country spelling out the particulars of the deal that was ostensibly reached. [[nid:720233]]
