Latest news with #importtariff
The Independent
a day ago
- Business
- The Independent
India to take steps to ‘secure national interest' after Trump imposes 25% tariff
The Indian government said it would take necessary steps to secure its national interest after Donald Trump hit the South Asian country with a 25 per cent import tariff in a stinging rebuke that also targeted New Delhi for its ties to Russia. The Narendra Modi government said it was evaluating the implications of the American president's decision – announced just ahead of the 1 August deadline for his new tariff regime to take effect – while continuing to carry out 'negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement'. New Delhi had been negotiating a trade deal with Washington for months before Mr Trump announced the levy. The talks were set to resume next month and Indian officials expected a deal to be reached by September or October. In a social media post announcing the new tariff, Mr Trump accused India of enforcing the 'most strenuous and obnoxious' regulatory hurdles of any country. He said he was imposing a 25 per cent levy on Indian exports to the US and an undefined penalty for New Delhi's energy and military purchases from Russia. 'While India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country,' Mr Trump posted on his Truth Social platform. 'Also, they have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE — ALL THINGS NOT GOOD!' The US has a trade deficit of $45.7bn with India. Just a few hours later, Mr Trump again took aim at India for its ties with Russia. 'I don't care what India does with Russia,' he posted on Thursday. 'They can take their dead economies down together, for all I care. We have done very little business with India, their Tariffs are too high, among the highest in the World.' Mr Trump's aggressive rhetoric crushed India's hopes of getting preferential treatment compared to other Asian economies on the back of his bonhomie with Mr Modi. The 25 per cent rate is harsher than what other major Asian economies like South Korea, Japan and Indonesia have secured from the US. While both South Korea and Japan have agreed to a 15 per cent rate, Indonesia has settled for 19 per cent. "The government has taken note of a statement by the US president on bilateral trade,' the Indian government said. 'The government is studying its implications.' Mr Trump had earlier announced a trade agreement with Pakistan which India's chief rival said would lead to lower tariffs on its exports. Neither side has yet revealed the agreed tariff rate, however. Mr Trump's latest comments threaten to strain Washington's relationship with New Delhi, which is already unhappy with the US president's closeness with Islamabad. Addressing the parliament on Thursday, commerce and trade minister Piyush Goyal said New Delhi was no more a 'fragile economy' and was, in fact, on track to become the third largest economy in the world. 'India and the US entered negotiations for a fair, balanced and mutually beneficial bilateral trade agreement in March 2025, with a target to complete the first draft of the agreement by fall of 2025,' he said. 'The government is examining the impact of the recent events. The ministry of commerce and industry is holding talks with exporters, industries and all stakeholders and gathering information on their assessment of this issue.' Mr Goyal emphasised the government was committed to safeguarding the welfare of the country's farmers and labourers. In the five rounds of talks held so far, agriculture and dairy remained a major sticking point as the US sought greater access to the Indian market for its farm exports like wheat, corn, cotton, and genetically modified crops. India, however, insisted that the agriculture and dairy sector were off-limits. The sector employs over 80 million people in the country who will be prepared to take to the streets in protest if a deal is perceived to be detrimental to their interests. Mr Goyal told CNBC last week that agriculture was a sensitive sector for India and assured that the Modi government would ensure the interests of farmers were 'well protected.' However, he said India remained 'optimistic' about striking a deal with Washington soon. The US was India's top trading partner until recently, with bilateral trade totalling $190bn in 2024. Mr Trump and Mr Modi have set an ambitious goal to more than double that figure to $500bn.
Bloomberg
a day ago
- Automotive
- Bloomberg
Hyundai, Kia Face $5 Billion Hit From US-Korea Auto Tariff Deal
Hyundai Motor Co. and affiliate Kia Corp. could face as much as $5 billion in additional costs this year under a new trade agreement between the US and South Korea that imposes a 15% import tariff on automobiles. While the South Korean auto industry avoided a worst-case 25% levy, the new duties are equivalent to 25% to 30% of Hyundai and Kia's 2024 earnings before interest and taxes, according to Bloomberg Intelligence analyst Joanna Chen.
News.com.au
2 days ago
- Business
- News.com.au
ASX explorers watch closely as Brazil scrambles to defuse US trade tensions
Brazil seeks relief measures as 50% import tariff looms If it happens, the move signifies a near-term blow to Brazil's mining sector amid its rise as an alternative to China for critical minerals Here's what some ASX explorers operating in the country have to say Brazil's Lula administration is planning relief measures for companies impacted by a 50% import tariff imposed by the US, as the country's Finance Minister Fernando Haddad warns the measure could harm more than 10,000 local businesses. Set to take effect on August 1, Trump's latest move on the South American nation - a significant trading partner for the US and Latin America's largest economy - was reportedly made in response to trade deals classified by the White House as 'unfair' and 'far from reciprocal', with the new rate reflecting a massive jump to the 10% figure initially proposed. The Trump administration has also expressed anger toward the trial of former Brazilian president Jair Bolsonaro, who has been charged with trying to overturn his 2022 election loss. While it's unclear if the tariff will have a direct impact on ore produced by companies in the mining sector, it will no doubt play a part in discouraging foreign investment, adding upward inflation pressure and potentially weakening the real. It also represents a material short-term headwind for Brazil's resources and mining sector, which is currently viewed by countries around the world as a safe alternative supply hub to China's stranglehold on critical minerals. The Middle Kingdom controls ~70% of rare earth mining and ~90% of rare earth processing while Brazil holds the world's third largest reserves of rare earths at 21Mt. But although China is the only country with a fully vertical integrated rare earth supply chain, Brazil is starting to show promise in this area too. Mining companies are forming partnerships with domestic and international groups to build magnet capabilities, just like St George Mining (ASX:SGQ) has done with MagBras. St George targets REE magnet production MagBras is a public-private initiative focused on developing rare earth magnet production in Brazil. It is backed by the National Service for Industrial Training (SENAI), funded by the Minas Gerais Research Development Foundation (Fundep) and managed by the Federation of the Industries of Minas Gerais (FIEMG). St George is collaborating with MagBras on research, development and production of rare earth magnets with the potential to supply high-grade material from its 40.6Mt at 4.13% total rare earth oxide (TREO) Araxa project. Along with rare earths, the Araxa project holds substantial niobium exposure, with historical drilling outlining high-grade zones grading up to 8% (80,000ppm) niobium pentoxide. The versatile metal is used primarily in steel making, superconductivity and high-performance alloys, which enhances the strength and corrosion resistance of steel, making it crucial for infrastructure like pipelines and construction. Niobium-based superconductors are vital for MRI machines, maglev trains and can be found in rocket engine nozzles as well as other aerospace components. SGQ managing director John Prineas told Stockhead the company was the only ASX-listed junior explorer in Brazil to have defined JORC resources for rare earths and niobium, with these unprecedented market developments underpinning its potential to deliver sustained value from Araxa. Brazil gains ground as critical minerals hub Even if the US has yet to decide on pursuing a trade agreement with Brazil, such a move could open the door to negotiations and jumpstart talks to reduce current tariff disputes. The US currently accounts for 4% of Brazil's mineral purchases and ranks as the 12 th largest importer of minerals from the country by volume. Mining projects require substantial investment and long development timelines, leaving them especially vulnerable to sudden shifts in trade policy or market conditions. A significant tariff could prompt companies to reassess the financial feasibility of current projects or delay new ventures in favour of markets with more predictable regulatory environments. Verity Resources (ASX:VRL), owners of the Pimenta and Caldera rare earth assets in northern Minas Gerais, Brazil, believes the country is rapidly emerging as a critical frontier in the global race for critical minerals as Western nations seek to diversify away from China. 'The current US-Brazil trade talks only underscore the urgency to develop transparent, geopolitically aligned non-China supply chains,' VRL non-executive director Patrick Volpe said. 'Verity's Pimenta REE-gallium-titanium and Caldera REE projects are well-positioned within this strategic context to support long-term, secure sourcing of these essential metals.' The company is planning a maiden auger drill program at its Pimenta project, focusing on a 20km high-grade rare earths-gallium-titanium zone. Drilling will follow recent reconnaissance work, which delivered up to 25,817ppm total rare earth oxide (TREO), with an average of 25% high value magnet rare earths (MREO) over 147 samples. ASX explorers double down on critical minerals Axel REE (ASX:AXL) operates the Caladão project, also in the prolific mining province of Minas Gerais, where mineralisation is found within a thick regolith profile, rich in clay minerals such as REEs and gallium. Existing exploration at Caladão covers just 20% of the total 430km2 project area, offering plenty of potential for further discoveries. Auger drilling results have reinforced the asset's status as a key non-Chinese gallium project with Area B standing out as a high-potential target for a large, high-grade resource. Axel REE non-executive director Paul Dickson said Brazil's strategic importance in the global critical minerals landscape was growing and its Caladão project was uniquely positioned to contribute to this shift. 'With a mineral resource estimate for gallium on the horizon, Caladão could play a key role in reshaping the non-China gallium supply chain at a time when alternative sources are urgently needed,' he said. Another early-stage explorer in the area is Australian Mines (ASX:AUZ) with its Jequie rare earths-niobium project. Recent auger drilling has revealed REE mineralisation across near-surface areas, indicating the potential for ionic-clay hosted deposits. A total of 16 holes for 157.1m were drilled over the Jequie South target, while another 45 were collected for assaying. About 69% of the samples returned total rare earth oxide (TREO) assays greater than 400ppm. Over at the Jequie North target, 56 holes were drilled for 343.5m, intersecting anomalous intervals of REE mineralisation over a wide area – resulting in the best intersection to date of 9m at 1028ppm TREO. About 55% of the assays returned TREO values greater than 400ppm. Going forward, Australian Mines intends to complete additional exploration programs at Jequie (North and South) which may comprise geological mapping, geochemical sampling and auger drilling. Potential risks Brazilian Critical Minerals (ASX:BCM) is in the midst of advancing multiple work streams at its Ema project in the state of Amazonas, aimed at designing, permitting and financing the asset. The explorer has appointed lead consultants ANSTO and WSP to advance the project through detailed feasibility studies. Ema is the only rare earths in-situ recovery development of its kind in the Western World with a capital cost of just US$55m, positioning it as potentially the lowest-cost, near-term source of rare earth feedstock under current market conditions. BCM managing director Andrew Reid said whilst unclear if the 50% tariff coversed rare earth products, the implications – if true – would be far reaching given the geopolitical uncertainty. 'Brazil is poised to accelerate its development of projects, which could rapidly aid in the establishment of an ex-China supply network,' he said. 'These tariffs would force US buyers to pivot to other suppliers or domestic sources, inflating global cost curves. 'Brazilian projects with US financial backing could face financing and market-access risks, possibly slowing execution timelines,' Reid added. 'All of this could case global rare earth price volatility to rise, increasing costs for all sectors heavily dependent on rare earths.'
News24
2 days ago
- Business
- News24
Could copper tariff hurt US more than Chile?
Chile, the world's biggest copper producer, is hoping for a last-minute deal to stop the United States from imposing a 50-percent import tariff on the red metal. If not, the South American country should be able to easily find other buyers for a metal deemed critical for the artificial intelligence and green energy revolutions, analysts say. Chile is the largest provider of copper to the United States, whose US President Donald Trump announced a punishing levy on the metal starting Friday. Government sources in Santiago told AFP delegations have been talking behind closed doors since Monday, seeking a Trump-pleasing deal that will in effect replace a free trade agreement in place since 2004. The United States imports about 45 percent of the copper it needs for industrial use, according to the US Geological Survey, a government agency. Of that, it gets 51 percent from Chile. According to Trump himself, it is "the second most used material by the Department of Defence" - used in semiconductors, planes, ships, ammunition, data centers and missile defence systems. Trump "wants to revitalise a domestic industry that has faded and has been overtaken by China and has become reliant on foreign imports," Andy Cole, an analyst with the London-based Fastmarkets price-tracking agency, told AFP. Raising the tariff on imported copper will increase US production costs, which may boost demand for domestically sourced copper. But the United States does not have the capacity to increase its production overnight, and "in the long run the losers will be US consumers if they have the pay more for copper," said Cole. Juan Carlos Guajardo, director of Chilean consulting firm Plusmining, said the United States would need to produce between 600 000 and 800 000 tons of copper per year for its domestic industry, and would not be able to reach that level for "at least 10 years." Chile is responsible for nearly a quarter of global copper supply, which contributes 10 to 15 percent to its GDP. Its Finance Minister Mario Marcel has warned of "medium-term" damage from a 50-percent tariff, but said the country could mitigate longer-term harms through "market diversification." For Guajardo, this means Chile can "redirect its copper," particularly "to Southeast Asia and India" or even Europe. China is by far the leading buyer of Chilean copper, accounting for 52 percent - totaling $26 billion - in 2024, according to the South American country's central bank. The United States occupied a distant second place with imports worth $5.8 billion from Chile, followed by Japan with $5.3 billion and South Korea with $2.8 billion. According to Maurice Obstfeld, an economics professor at the University of California, Berkeley, "copper importers other than the US could gain" from the tariff hike. Chile says it has not been officially notified of the August 1 starting date for a copper tariff, and is still hoping to avoid it. The country's foreign ministry has said "confidential" talks with US delegates would continue to the last minute. According to Marcel, copper itself is not formally on the negotiating table, but will likely be included. "For this type of raw material, exceptions have been made in other agreements," he told Radio Duna earlier this week. After Trump's announcement on July 8, the price of copper soared to record levels in New York. US buyers rushed to stockpile the red metal before August 1, paying prices sometimes as much as 30 percent higher than in London.
Daily Mail
4 days ago
- Business
- Daily Mail
Trump hits Brazil with a 50 percent import tariff
Donald Trump has hit Brazil with a 50 percent import tariff on 'any and all' goods sent to the United States as punishment for the 'witch hunt' trial against former president Jair Bolsonaro. Trump fired off a furious letter to Brazilian President Luiz Inácio Lula da Silva on Wednesday laying out the details of his new tariff. 'The way that Brazil has treated former President Bolsonaro, a Highly Respected Leader throughout the world... is an international disgrace,' Trump wrote in the letter, which he shared to Truth Social. Bolsonaro is on trial accused of trying to overturn his 2022 election loss. He testified in June before the country's Supreme Court over his alleged plot to remain in power despite losing the vote. The president said his whopping tariff was also in part a response to Brazil's 'insidious attacks on Free Elections and the Fundamental Free Speech rights of Americans.' He said a decision by Brazil's Supreme Court to fine and temporarily block US social media companies last year amounted to 'SECRET and UNLAWFUL Censorship Orders.' Trump said he is launching an investigation as a result under Section 301 of the Trade Act of 1974, which applies to countries with trade practices that are deemed unfair to U.S. companies. 'Starting August 1, we will charge Brazil a tariff of 50 percent on any and all Brazilian products sent into the United States, separate from all Sectoral tariffs. 'Goods transshipped to evade this 50 percent tariff will be subject to that higher tariff,' he warned. Trump described the current trade relationship between America and Brazil as 'very unfair' and 'far from reciprocal.' 'Please understand that the 50 percent number is far less than what is needed to have the Level Playing Field we must have with your country.' Brazil's current president Lula responded with a forceful statement warning Trump's tariffs would trigger the country's economic reciprocity law, which allows trade, investment and intellectual property agreements to be suspended against countries that harm Brazil's competitiveness. He noted that the US has had a trade surplus of more than $410 billion with Brazil over the past 15 years. 'Brazil is a sovereign country with independent institutions that will not accept being taken for granted by anyone,' Lula said. Brazil's vice president, Geraldo Alckmin, said he sees 'no reason' for the US to hike tariffs on the South American nation. 'I think he has been misinformed,' he said. 'President Lula was jailed for almost two years. No one questioned the judiciary. No one questioned what the country had done. This is a matter for our judiciary branch.' Trump, too, was indicted in 2023 for his efforts to overturn the results of the 2020 US presidential election. Pictured: President Donald Trump greets Brazilian President Jair Bolsonaro at the West Wing of the White House prior to meetings in Washington, DC on March 19, 2019. He compared their situations in a Tuesday Truth Social post, writing: 'He is not guilty of anything, except having fought for THE PEOPLE. 'His Election was very close and now, he is leading in the Polls. This is nothing more, or less, than an attack on a Political Opponent — Something I know much about! It happened to me, times 10, and now our Country is the 'HOTTEST' in the World!' The tariffs starting August 1 would be a dramatic increase from the 10 percent rate that Trump levied on Brazil as part of his April 2 'Liberation Day' announcement . Brazil sells oil, orange juice, coffee, iron and steel to the US, among other products. The US ran a $6.8 billion trade surplus with Brazil last year, according to the Census Bureau. Trump initially announced his broad tariffs by declaring an economic emergency , arguing under a 1977 law that the US was at risk because of persistent trade imbalances. But that rationale becomes murky in this particular case, as Trump is linking his tariffs to the Bolsonaro trial and the US exports more to Brazil than it imports. Trump also sent letters Wednesday to the leaders of seven other nations - the Philippines, Brunei, Moldova, Algeria, Libya, Iraq and Sri Lanka. Most economic analyses say the tariffs will worsen inflationary pressures and subtract from economic growth, but Trump has used the taxes as a way to assert the diplomatic and financial power of the US on both rivals and allies. His administration argues the taxes will lower trade imbalances, offset some of the cost of the tax cuts he signed into law on Friday as part of the Big Beautiful Bill and bring factory jobs back to the United States. 'We really haven't had too many complaints because I'm keeping them at a very low number, very conservative as you would say,' Trump said. Officials for the European Union, a major trade partner and source of Trump's ire on trade, said Tuesday that they are not expecting to receive a letter from Trump listing tariff rates . The president started the process of announcing tariff rates on Monday by hitting two major US trading partners, Japan and South Korea, with import taxes of 25 percent. The letters were posted on Truth Social after the expiration of a 90-day negotiating period with a baseline levy of 10 percent. Trump is giving countries more time to negotiate with his August 1 deadline, but he has insisted there will be no extensions for the countries that receive letters. The president threatened additional tariffs on any country that attempts to retaliate.
