Indian readies for punishing US tariffs

Indian exports to the United States will face some of the highest tariffs in the world this week, barring a last-minute reversal from President Donald Trump. Trump has tied issues of war and peace to trade, threatening to slap 50 percent duties on New Delhi in retaliation for its continued purchases of Russian oil — which Washington argues help finance Moscow’s war in Ukraine.The tariff offensive has rattled US-India ties, given New Delhi a new incentive to repair relations with Beijing, and carries major consequences for the world’s fifth-largest economy.Trump issued a three-week deadline on August 6, which is expected to take effect on Wednesday morning in India.- How bad will it be? -The United States was India’s top export destination in 2024, with shipments worth $87.3 billion.Analysts at Nomura warn that 50 percent duties would be “akin to a trade embargo”, devastating smaller firms with “lower value add and thinner margins”. Elara Securities’s Garima Kapoor said no Indian product can “stand any competitive edge” under such heavy import taxes.Economists estimate tariffs could shave 70 to 100 basis points off India’s GDP growth this fiscal year, dragging growth below six percent, the weakest pace since the pandemic.Exporters in textiles, seafood and jewellery are already reporting cancelled US orders and losses to rivals such as Bangladesh and Vietnam, raising fears of heavy job cuts.A small reprieve: pharmaceuticals and electronics, including iPhones assembled in India, are exempt for now.S&P estimates exports equivalent to 1.2 percent of India’s GDP will be hit, but says it will be a “one-off” shock that “will not derail” the country’s long-term growth prospects.- Will either side blink? -There’s no sign yet. In fact, since the US and Russian presidents met in Alaska, Washington has ramped up criticism of India.”India acts as a global clearinghouse for Russian oil, converting embargoed crude into high-value exports while giving Moscow the dollars it needs,” White House trade adviser Peter Navarro wrote in the Financial Times earlier this month, slamming the country’s refiners for “profiteering”.Indian Foreign Minister Subrahmanyam Jaishankar fired back, arguing India’s purchases helped stabilise global oil markets — and were done with Washington’s tacit approval in 2022.He argued that both the United States and Europe buy refined oil and associated products from India.”If you have a problem buying oil from India, oil or refined products, don’t buy it”, he said, speaking in New Delhi. “Nobody forced you to buy it — but Europe buys, America buys.”Jaishankar said that, until Trump’s ultimatum, there had been “no conversations” asking them to stop buying Moscow’s oil.Trade trackers at Kpler say India’s stance will become clearer only in September, as most August shipments were contracted before Trump’s threats.But experts say India is in a tricky situation.India needs “considerable ingenuity and flexibility” to escape “what appears to be a no-win situation”, said Nandan Unnikrishnan of New Delhi-based Observer Research Foundation.Washington, Unnikrishnan argued, is telling India: “We think that you are the weakest link in the Russia-Ukraine geopolitics chain”.- What can India do? -New Delhi has sought to bolster its economy while deepening ties with both BRICS partners and regional rivals.Jaishankar flew to ally Moscow, producing pledges to ease barriers to bilateral trade, while Prime Minister Narendra Modi is preparing his first visit to China in seven years to repair long-frosty relations.Domestically, Indian media reports that the government is working on a $2.8 billion package for exporters, a six-year programme aimed at easing liquidity concerns.Modi has also proposed tax cuts on everyday goods to spur spending and cushion the economy.- What is blocking a trade deal? -Talks have stumbled over agriculture and dairy.Trump wants greater US access, while Modi is determined to shield India’s farmers, a huge voter bloc.Indian media reports suggested that US negotiators cancelled a planned late-August trip to India. That sparked speculation that discussions had broken down.Jaishankar, however, says talks are continuing, adding drily: “Negotiations are still going on in the sense that nobody said the negotiations are off,” he said. “And people, people do talk to each other.”

Indian readies for punishing US tariffs

Indian exports to the United States will face some of the highest tariffs in the world this week, barring a last-minute reversal from President Donald Trump. Trump has tied issues of war and peace to trade, threatening to slap 50 percent duties on New Delhi in retaliation for its continued purchases of Russian oil — which Washington argues help finance Moscow’s war in Ukraine.The tariff offensive has rattled US-India ties, given New Delhi a new incentive to repair relations with Beijing, and carries major consequences for the world’s fifth-largest economy.Trump issued a three-week deadline on August 6, which is expected to take effect on Wednesday morning in India.- How bad will it be? -The United States was India’s top export destination in 2024, with shipments worth $87.3 billion.Analysts at Nomura warn that 50 percent duties would be “akin to a trade embargo”, devastating smaller firms with “lower value add and thinner margins”. Elara Securities’s Garima Kapoor said no Indian product can “stand any competitive edge” under such heavy import taxes.Economists estimate tariffs could shave 70 to 100 basis points off India’s GDP growth this fiscal year, dragging growth below six percent, the weakest pace since the pandemic.Exporters in textiles, seafood and jewellery are already reporting cancelled US orders and losses to rivals such as Bangladesh and Vietnam, raising fears of heavy job cuts.A small reprieve: pharmaceuticals and electronics, including iPhones assembled in India, are exempt for now.S&P estimates exports equivalent to 1.2 percent of India’s GDP will be hit, but says it will be a “one-off” shock that “will not derail” the country’s long-term growth prospects.- Will either side blink? -There’s no sign yet. In fact, since the US and Russian presidents met in Alaska, Washington has ramped up criticism of India.”India acts as a global clearinghouse for Russian oil, converting embargoed crude into high-value exports while giving Moscow the dollars it needs,” White House trade adviser Peter Navarro wrote in the Financial Times earlier this month, slamming the country’s refiners for “profiteering”.Indian Foreign Minister Subrahmanyam Jaishankar fired back, arguing India’s purchases helped stabilise global oil markets — and were done with Washington’s tacit approval in 2022.He argued that both the United States and Europe buy refined oil and associated products from India.”If you have a problem buying oil from India, oil or refined products, don’t buy it”, he said, speaking in New Delhi. “Nobody forced you to buy it — but Europe buys, America buys.”Jaishankar said that, until Trump’s ultimatum, there had been “no conversations” asking them to stop buying Moscow’s oil.Trade trackers at Kpler say India’s stance will become clearer only in September, as most August shipments were contracted before Trump’s threats.But experts say India is in a tricky situation.India needs “considerable ingenuity and flexibility” to escape “what appears to be a no-win situation”, said Nandan Unnikrishnan of New Delhi-based Observer Research Foundation.Washington, Unnikrishnan argued, is telling India: “We think that you are the weakest link in the Russia-Ukraine geopolitics chain”.- What can India do? -New Delhi has sought to bolster its economy while deepening ties with both BRICS partners and regional rivals.Jaishankar flew to ally Moscow, producing pledges to ease barriers to bilateral trade, while Prime Minister Narendra Modi is preparing his first visit to China in seven years to repair long-frosty relations.Domestically, Indian media reports that the government is working on a $2.8 billion package for exporters, a six-year programme aimed at easing liquidity concerns.Modi has also proposed tax cuts on everyday goods to spur spending and cushion the economy.- What is blocking a trade deal? -Talks have stumbled over agriculture and dairy.Trump wants greater US access, while Modi is determined to shield India’s farmers, a huge voter bloc.Indian media reports suggested that US negotiators cancelled a planned late-August trip to India. That sparked speculation that discussions had broken down.Jaishankar, however, says talks are continuing, adding drily: “Negotiations are still going on in the sense that nobody said the negotiations are off,” he said. “And people, people do talk to each other.”

Asian stocks down after Trump Fed firing, tariff threats

Asian stocks retreated Tuesday after a series of market-rattling announcements by US President Donald Trump, including the unusual firing of a central bank official and threats to impose export controls on microchips.Traders had been riding a wave of confidence since Friday’s speech by US Federal Reserve Chairman Jerome Powell, which suggested coming interest rate cuts in the world’s largest economy.But the upward flurry appeared to die out Monday on Wall Street as attention turned back to this week’s earnings report from AI chip giant Nvidia — a bellwether for the industry as concerns over a tech bubble mount.Asian markets started Tuesday broadly lower, tracking drops made the previous day in New York and Europe.Tokyo’s main index saw the largest fall, down over one percent just ahead of the midday break. Benchmarks in Hong Kong, Shanghai, Seoul, Taipei and Sydney were also down.Weighing on investors’ minds was Trump’s Monday evening announcement in the United States that he was removing Federal Reserve governor Lisa Cook, citing allegations of false statements on her mortgage agreements.The highly unusual step comes as worries grow about the independence of the central bank, fuelled by Trump’s repeated public demands on Powell to lower interest rates.The dollar fell following the news, while gold — widely perceived as a safe storage of wealth — advanced.”The independence of the Fed, already a fraying banner, looks tattered against the gusts of politics,” wrote Stephen Innes of SPI Asset Management in a note.”What’s left is a central bank suddenly with a missing vote, a looming inflation test on Friday and a president willing to make personnel changes with the flair of a ringmaster cracking the whip,” he added.Eyes are now turning toward a US GDP report on Thursday and a key inflation gauge coming on Friday for clues on how far interest rates might fall — or not — in the coming months.Trump also vowed Monday evening to impose “substantial additional tariffs” on shipments from countries that do not cancel digital taxes and regulations, which he said were “designed to harm” US technology.He added a threat to introduce export restrictions on “highly protected (US) technology and chips”, without offering further details.Oil prices crept down Tuesday, walking back increases made in recent days amid speculation about a peace deal to end the war in Ukraine.- Key figures at around 0215 GMT -Tokyo – Nikkei 225: DOWN 1.0 percent at 42,365.52Hong Kong – Hang Seng Index: DOWN 0.3 percent at 25,740.95Shanghai – Composite: DOWN 0.2 percent at 3,875.732Euro/dollar: UP at $1.1644 from $1.1624 on MondayPound/dollar: UP at $1.3475 from $1.3460Dollar/yen: DOWN at 147.42 yen from 147.70 yenEuro/pound: UP at 86.42 pence from 86.35 penceWest Texas Intermediate: DOWN 0.5 percent at $64.49 per barrelBrent North Sea Crude: DOWN 0.4 percent at $68.51 per barrelNew York – Dow: DOWN 0.8 percent at 45,282.47 (close)London – FTSE 100: CLOSED Monday for Summer Bank Holiday

Drones take on Everest’s garbage

A team of drone operators joined climbers and guides at Everest Base Camp this climbing season, armed with heavy-duty drones to help clear rubbish from the world’s highest peak.Tonnes of trash — from empty cans and gas canisters, to bottles, plastic and discarded climbing gear — have earned once-pristine Everest the grim nickname of the “highest dumpster in the world”.Two DJI FC 30 heavy-lifter drones were flown to Camp 1 at 6,065 metres (19,900 feet), where they airlifted 300 kilograms (660 pounds) of trash down during the spring climbing season, which usually lasts from April to early June.”The only options were helicopters and manpower, with no option in between,” said Raj Bikram Maharjan, of Nepal-based Airlift Technology, which developed the project.”So, as a solution for this problem, we came up with a concept of using our heavy-lift drone to carry garbage.”After a successful pilot on Everest last year, the company tested the system on nearby Mount Ama Dablam, where it removed 641 kilos of waste.”This is a revolutionary drive in the mountains to make it cleaner and safer,” said Tashi Lhamu Sherpa, vice chairman of the Khumbu Pasang Lhamu rural municipality, which oversees the Everest area.- ‘Game changer’ -The drones are proving to be far more efficient, cost-effective and safer than earlier methods, said Tshering Sherpa, chief of the Sagarmatha Pollution Control Committee.”In just 10 minutes, a drone can carry as much garbage as 10 people would take six hours to carry,” Sherpa told AFP.The powerful drones cost around $20,000 each, but were supplied by the China-headquartered manufacturer to support the cleanup operation and promote its brand.Other costs were borne partially by the local authorities.Beyond waste removal, the drones have also been deployed to deliver essential climbing gear such as oxygen cylinders, ladders, and ropes — reducing the number of dangerous trips across the Khumbu Icefall, one of Everest’s deadliest sections.That can help improve safety for the guides and porters, especially the early “fixing” teams who establish routes at the start of the new season.”People in the fixing team were very happy,” said record-holding climber Nima Rinji Sherpa, the youngest to summit all 14 of the world’s highest peaks.”They can simply just go by themselves and the drone will carry ladders or the oxygen and ropes for them. It saves a lot of time and energy.”Next month, Airlift Technology will take the drones to Mount Manaslu, the world’s eighth-highest peak.”It’s not just in war that drones are useful,” Maharjan said.”They can save lives and protect the environment. For climate and humanitarian work, this technology is going to be a game changer.”

Australia joins countries suspending post to US

Australia joined on Tuesday a string of countries suspending some postal deliveries to the United States, citing a “complex and rapidly evolving situation” with US President Donald Trump’s looming tariffs.Australia Post said most goods being sent to the United States and Puerto Rico would no longer be accepted “until further notice”.Gifts with a value of less than US$100, letters and documents were exempt from the suspension. The move follows similar steps taken by other postal services and mail carriers including in Austria, Belgium, Denmark, France, Germany, India and New Zealand.Japan also announced that US-bound individual gifts worth more than $100 and goods for sale would no longer be accepted from Wednesday.Taiwan said it will stop sending merchandise-type mail to the United States from Tuesday.The Trump administration has said that as of August 29 it will abolish a tax exemption on small packages entering the United States.Australia Post executive general manager Gary Starr said the company was focused on providing “a reliable and competitive postal service for customers”. “We are disappointed we have had to take this action, however, due to the complex and rapidly evolving situation, a temporary partial suspension has been necessary to allow us to develop and implement a workable solution for our customers.”

Norway wealth fund divests from Caterpillar over Gaza ‘rights violations’

Norway’s sovereign wealth fund said Monday that it had divested from US construction equipment firm Caterpillar over purported involvement in rights violations in the Israel-Hamas war.Fuelled by Norway’s vast energy revenues, the fund is the world’s biggest, with a value of nearly $2 trillion and investments in more than 8,600 companies across the globe.The fund had held a 1.2 percent stake in Caterpillar, valued at 24.4 billion krone ($2.4 billion), as of the end of last year.The Norwegian central bank, which manages the fund, said it had decided to exclude Caterpillar as it posed “an unacceptable risk… to serious violations of the rights of individuals in situations of war and conflict”.The fund said it had based its decision on a recommendation by its council on ethics.In a statement, the council said that “bulldozers manufactured by Caterpillar are being used by Israeli authorities in the widespread unlawful destruction of Palestinian property”.”There is no doubt that Caterpillar’s products are being used to commit extensive and systematic violations of international humanitarian law,” the body said.It added that the company had “not implemented any measures to prevent such use”.AFP has contacted Caterpillar for comment.The fund said it had also withdrawn from five Israeli firms for financing the construction of illegal settlements in the Israel-occupied West Bank.They included First International Bank of Israel, FIBI Holdings, Bank Leumi Le-Israel, Mizrahi Tefahot and Bank Hapoalim.Earlier this month, the fund said it was selling out of 11 Israeli companies following reports that it had invested in an Israeli jet engine maker even as the war in Gaza raged.The revelations led Prime Minister Jonas Gahr Store to ask Finance Minister and former NATO secretary general Jens Stoltenberg for a review.

Nouveau report du lancement de la mégafusée Starship pour cause de mauvaise météo

L’entreprise américaine SpaceX du multimilliardaire Elon Musk a reporté une nouvelle fois lundi un vol d’essai de sa mégafusée Starship, développée pour aller sur la Lune et Mars, en raison de mauvaises conditions météorologiques.”Malheureusement, le lancement n’aura pas lieu aujourd’hui, la météo nous en a empêché”, a déclaré Dan Huot, un responsable de la société lors d’une retransmission en direct.Dimanche, le décollage de ce mastodonte haut de plus de 120 mètres avait également été annulé à la dernière minute, après la découverte d’une défaillance sur un système au sol. Les aléas météorologiques et pépins techniques constituent des contretemps récurrents dans le secteur spatial, et SpaceX a indiqué vouloir retenter sa chance dès mardi.”Il y a donc de fortes chances que nous puissions réessayer demain”, a déclaré M. Huot, la société disposant d’une nouvelle fenêtre de tir à partir de 18H30 au Texas (23H30 GMT).Ce dixième vol d’essai de Starship, la plus grande fusée jamais développée, est particulièrement attendu car il fait suite à trois essais s’étant soldés en début d’année par des explosions.Si SpaceX est connue pour ses prises de risque et a démontré jusqu’ici que ses paris s’avéraient payants, cette succession de déconvenues interroge des experts quant aux réelles avancées menées par la société d’Elon Musk.Pour l’instant, “les succès n’ont pas surpassé les échecs”, estime auprès de l’AFP Dallas Kasaboski, expert spatial au cabinet de conseil Analysys Mason.La mégafusée Starship ne s’est “pas révélée fiable”, abonde-t-il, prévenant que ce nouveau vol d’essai soumettra donc SpaceX à “une forte pression”.- Voyages interplanétaires -L’enjeu est d’autant plus important que l’homme le plus riche au monde, qui ambitionne de coloniser Mars, continue de tabler sur de premiers lancements vers la planète rouge dès 2026.Une version modifiée de Starship doit aussi servir au programme Artémis de la Nasa, qui prévoit le retour des Américains sur la Lune, avec pour objectif d’y maintenir cette fois une présence durable.Connu pour ses prévisions très optimistes et ses projets fous, Elon Musk a révolutionné le secteur spatial avec son système de production à la chaîne de fusées réutilisables et domine aujourd’hui le marché des lancements commerciaux.Avec Starship, il souhaite aller encore plus loin en développant une fusée capable de mener des voyages interplanétaires tout en étant entièrement réutilisable.Si SpaceX réussit pour l’instant à récupérer le premier étage de sa mégafusée, qui propulse l’ensemble, dans une manoeuvre spectaculaire qu’elle seule maîtrise, ce n’est pas le cas pour le vaisseau.Ce dernier, qui lors des trois derniers vols d’essais a explosé, doit réaliser lors de ce dixième vol d’essai une série de tests avant de finir sa course dans l’océan Indien. D’autres expérimentations en vol doivent être menées sur le propulseur avant qu’il ne plonge dans les eaux du golfe du Mexique.Quelle que soit l’issue de ces tests, la mégafusée sera encore loin d’être prête à mener de véritables vols commerciaux.L’entreprise SpaceX doit en effet encore relever “des milliers de défis techniques”, a prévenu lundi Elon Musk lors de la retransmission en direct.Parmi ceux-ci, a-t-il détaillé: le ravitaillement en carburant de la fusée une fois dans l’espace et surtout la construction d'”un bouclier thermique” pour le vaisseau qui soit “entièrement réutilisable”, ce qui constituerait une prouesse technologique.

Nouveau report du lancement de la mégafusée Starship pour cause de mauvaise météo

L’entreprise américaine SpaceX du multimilliardaire Elon Musk a reporté une nouvelle fois lundi un vol d’essai de sa mégafusée Starship, développée pour aller sur la Lune et Mars, en raison de mauvaises conditions météorologiques.”Malheureusement, le lancement n’aura pas lieu aujourd’hui, la météo nous en a empêché”, a déclaré Dan Huot, un responsable de la société lors d’une retransmission en direct.Dimanche, le décollage de ce mastodonte haut de plus de 120 mètres avait également été annulé à la dernière minute, après la découverte d’une défaillance sur un système au sol. Les aléas météorologiques et pépins techniques constituent des contretemps récurrents dans le secteur spatial, et SpaceX a indiqué vouloir retenter sa chance dès mardi.”Il y a donc de fortes chances que nous puissions réessayer demain”, a déclaré M. Huot, la société disposant d’une nouvelle fenêtre de tir à partir de 18H30 au Texas (23H30 GMT).Ce dixième vol d’essai de Starship, la plus grande fusée jamais développée, est particulièrement attendu car il fait suite à trois essais s’étant soldés en début d’année par des explosions.Si SpaceX est connue pour ses prises de risque et a démontré jusqu’ici que ses paris s’avéraient payants, cette succession de déconvenues interroge des experts quant aux réelles avancées menées par la société d’Elon Musk.Pour l’instant, “les succès n’ont pas surpassé les échecs”, estime auprès de l’AFP Dallas Kasaboski, expert spatial au cabinet de conseil Analysys Mason.La mégafusée Starship ne s’est “pas révélée fiable”, abonde-t-il, prévenant que ce nouveau vol d’essai soumettra donc SpaceX à “une forte pression”.- Voyages interplanétaires -L’enjeu est d’autant plus important que l’homme le plus riche au monde, qui ambitionne de coloniser Mars, continue de tabler sur de premiers lancements vers la planète rouge dès 2026.Une version modifiée de Starship doit aussi servir au programme Artémis de la Nasa, qui prévoit le retour des Américains sur la Lune, avec pour objectif d’y maintenir cette fois une présence durable.Connu pour ses prévisions très optimistes et ses projets fous, Elon Musk a révolutionné le secteur spatial avec son système de production à la chaîne de fusées réutilisables et domine aujourd’hui le marché des lancements commerciaux.Avec Starship, il souhaite aller encore plus loin en développant une fusée capable de mener des voyages interplanétaires tout en étant entièrement réutilisable.Si SpaceX réussit pour l’instant à récupérer le premier étage de sa mégafusée, qui propulse l’ensemble, dans une manoeuvre spectaculaire qu’elle seule maîtrise, ce n’est pas le cas pour le vaisseau.Ce dernier, qui lors des trois derniers vols d’essais a explosé, doit réaliser lors de ce dixième vol d’essai une série de tests avant de finir sa course dans l’océan Indien. D’autres expérimentations en vol doivent être menées sur le propulseur avant qu’il ne plonge dans les eaux du golfe du Mexique.Quelle que soit l’issue de ces tests, la mégafusée sera encore loin d’être prête à mener de véritables vols commerciaux.L’entreprise SpaceX doit en effet encore relever “des milliers de défis techniques”, a prévenu lundi Elon Musk lors de la retransmission en direct.Parmi ceux-ci, a-t-il détaillé: le ravitaillement en carburant de la fusée une fois dans l’espace et surtout la construction d'”un bouclier thermique” pour le vaisseau qui soit “entièrement réutilisable”, ce qui constituerait une prouesse technologique.