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India exporters say 50% Trump levy a ‘severe setback’

Indian exporters warned on Thursday that the cost of additional US tariffs risked making businesses “not viable” after President Donald Trump ordered steeper levies totalling 50 percent on imported Indian goods.Prime Minister Narendra Modi said he was willing to “pay a great personal price”, while opposition Congress party leader Rahul Gandhi called the levies “economic …

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Higher US tariffs kick in for dozens of trading partners

The United States began charging higher tariffs on goods from dozens of trading partners Thursday, in a major escalation of President Donald Trump’s drive to reshape global commerce in America’s favor.Shortly before the new levies kicked in, Washington separately announced it would double Indian tariffs to 50 percent and hit many semiconductor imports from around the world with a 100-percent levy.As an executive order signed last week by Trump took effect, US import duties rose from 10 percent to levels between 15 percent and 41 percent for a list of trading partners.Many imports from economies including the European Union, Japan and South Korea now face a 15-percent tariff, even with deals struck with Washington to avert steeper threatened levies.But others like India face a 25-percent duty — to be doubled in three weeks to 50 percent — while Syria, Myanmar and Laos face staggering levels at either 40 percent or 41 percent. Switzerland’s government, which failed to convince Trump not to impose a stinging 39-percent tariff, was set to hold an extraordinary meeting later Thursday.Taking to his Truth Social platform just after midnight, Trump posted: “IT’S MIDNIGHT!!! BILLIONS OF DOLLARS IN TARIFFS ARE NOW FLOWING INTO THE UNITED STATES OF AMERICA!”The latest wave of “reciprocal” duties, aimed at addressing trade practices Washington deems unfair, broadens the measures Trump has imposed since returning to the presidency.- ‘No charge’ -On the eve of his latest salvo, he doubled planned duties on Indian goods to 50 percent, citing New Delhi’s continued purchase of Russian oil. The new levy — up from 25 percent now — would take effect in three weeks.The Federation of Indian Export Organisations called the move a “severe setback for Indian exports, with nearly 55 percent of our shipments to the US market directly affected.”For New Delhi, one of the main sticking points has been Washington’s demand to access India’s vast agricultural and dairy market. “We will not compromise with the interests of our farmers, our dairy sector, our fishermen,” Prime Minister Narendra Modi said Thursday.Trump’s order also threatened penalties on other countries that “directly or indirectly” import Russian oil, a key revenue source for Moscow’s war in Ukraine.Washington has already separately stuck tariffs on sector-specific imports such as steel, autos and pharmaceuticals. Trump said Wednesday he also planned an “approximately 100 percent tariff” on semiconductor imports, but with “no charge” for companies investing in the United States or committed to do so.Shares in Taiwanese chip-making giant TSMC surged as Taipei said it would be exempt, but some other Asian manufacturers took a beating.Companies and industry groups warn the new levies will severely hurt smaller American businesses, while economists caution that they could fuel inflation and hit growth.With the dust settling on countries’ tariff levels, at least for now, Georgetown University professor Marc Busch expects US businesses to pass along more of the bill to consumers.- ‘This will matter’ -An earlier 90-day pause in these higher “reciprocal” tariffs gave importers time to stock up, he said.But although the wait-and-see strategy led businesses to absorb more of the tariff burden initially, inventories are depleting and it is unlikely they will do this indefinitely, he told AFP.”With back-to-school shopping just weeks away, this will matter politically,” said Busch, an international trade policy expert.The tariffs leave lingering questions for partners that have negotiated deals with Trump recently.Tokyo and Washington, for example, appear at odds over key details of their pact, in particular on when lower levies on Japanese cars will take place.Generally, US auto imports now face a 25-percent duty under a sector-specific order. Toyota has cut its full-year profit forecast by 14 percent because of the tariffs.Japan and the United States also appear to differ on whether the “reciprocal” tolls of 15 percent on other Japanese goods would be on top of existing levies or — like the EU — be capped at that level.China and the United States, meanwhile, currently have a shaky truce in their standoff but that is due to expire on August 12.Chinese exports to the United States tumbled 21.7 percent last month, official data showed, while those to the European Union jumped 9.2 percent and to Southeast Asia by 16.6 percent.The EU is seeking a carveout from tariffs for its key wine industry.In a recent industry letter addressed to Trump, the US Wine Trade Alliance and others urged the sector’s exclusion from tolls, saying: “Wine sales account for up to 60 percent of gross margins of full-service restaurants.”Trump has separately targeted Brazil over the trial of his right-wing ally, former president Jair Bolsonaro, who is accused of planning a coup.US tariffs on various Brazilian goods surged from 10 percent to 50 percent Wednesday, but broad exemptions including for orange juice and civil aircraft are seen as softening the blow. Still, key products like Brazilian coffee, beef and sugar are hit.burs-stu/dan

UK pensioner, student arrested for backing Palestine Action

Pensioner Marji Mansfield never imagined she would end up suspected of terrorism for protesting against the banning of a pro-Palestinian group. But the British grandmother was arrested on July 5 for joining a demonstration in support of Palestine Action just days after it was added to the UK government’s list of proscribed organisations. “It’s a terrible shock to be accused of potentially being a terrorist,” said Mansfield, 68, who described herself as a “proud grandmother” of seven.She “was never politically interested,” the former banking consultant from the southern town of Chichester told AFP. “I just worked hard, raised my family, lived an ordinary life.”In early July, the UK government banned Palestine Action under the UK’s Terrorism Act, after activists broke into an air force base in England and damaged two aircraft.Since then, the campaign group Defend Our Juries has organised protests around the country to challenge the ban, described as “disproportionate” by the United Nations rights chief.More than 200 people have been arrested, according to Tim Crosland, a member of Defend Our Juries. They risk prison sentences of up to 14 years.A new demonstration in support of the group, which was founded in 2020, is planned on Saturday in London. Organisers expect at least 500 people to turn up, and police have warned all demonstrators could face arrest.People “don’t know what the nature of this group is,” interior minister Yvette Cooper has said, claiming that “this is not a non-violent group”. But Palestine Action co-founder Huda Ammori has launched a court bid to overturn the ban and a hearing is set for November.Some 52 scholars, including well-known authors Tariq Ali and Naomi Klein, backed the bid in an open letter published in Thursday’s Guardian, calling the ban an attack on “fundamental freedoms of expression, association, assembly and protest.” – ‘Not terrorists’ -Mansfield has long supported the Palestinian people, but the start of the current war, sparked by Hamas’s attacks on Israel on October 7, 2023, galvanised her into action. “When it started happening again … it was the most horrible feeling, that children’s homes were being blown up, that their schools were being destroyed,” she said.Hamas’s October 2023 attack on southern Israel resulted in the deaths of 1,219 people, mostly civilians, according to an AFP tally based on official figures.Israel’s subsequent campaign to eradicate the Palestinian militant group in Gaza has killed more than 60,000 people, also mostly civilians, according to figures from the Hamas-run territory’s health ministry, which are deemed reliable by the United Nations.For Mansfield, the Palestine Action ban was the final straw, fuelling her feelings that the government was silencing her political views.The night before attending the July demonstration, Mansfield said she was “terrified”. But she did not change her mind.Images on British media showed her being moved by several police officers after she refused to get up from the pavement. An 83-year-old woman was by her side.Mansfield spent 12 hours in custody, and is now banned from parts of London, meaning she cannot visit some museums with her grandchildren as she would like to do.”It was just ordinary people,” said Mansfield. “We came from all backgrounds … we’re not terrorists.”- ‘Civil liberties’ -Alice Clark, a 49-year-old doctor, also does not regret attending the protest where she was arrested in London on July 19.”Nobody wants to be arrested. I just feel that there’s a responsibility,” said Clark, who also accused the government of undermining “our civil liberties”. Cooper said the ban on Palestine Action was “based on detailed security assessments and security advice”.The ban says the group’s “methods have become more aggressive” by encouraging members to carry out attacks which have already caused millions of pounds in damage.But Clark, a former volunteer for medical charity Doctors Without Borders, said she felt “growing disgust and horror” at the images of starving children in Gaza.The 12 hours in custody after her arrest were a shock. If convicted, she risks losing her licence to practice medicine.”There were points where I was close to tears. But I think just remembering why I was doing it kind of helped me keep calm,” said Clark.History student Zahra Ali, 18, was also arrested on July 19, before being released under supervision. None of the three women has been charged.She is also appalled by the scenes from Gaza.”The starvation in Gaza, it’s disgusting. And our government isn’t doing anything about that,” she told AFP.Imagining herself in prison at 18 is “a big thing,” but “if people who are in their 80s can do it, then I can do it,” Ali said.She also does not describe herself as an activist, but as “a normal person … who decided that what our government is doing is wrong”.