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Tag: Donald Trump

  • Following Automaker Requests, Trump to Grant Exemption from Auto Tariffs

    The auto sector is pushing for amendments that would remove tariffs on foreign parts used in domestically produced vehicles; thus, President Trump is making progress towards easing the impact of his tariffs.

    In an attempt to avoid numerous charges piling on top of one another, a White House official announced on April 28 that imported cars would also be exempt from separate tariffs on steel and aluminium.

    In a statement sent by email, Commerce Secretary Howard Lutnick noted that this agreement, which rewards domestic manufacturers, is a significant win for the president’s trade policies. Additionally, it gives corporations who have stated their intention to increase their domestic manufacturing and invest in America a runway.

    Trump Administration Completing 100 Days

    The requested changes are being proposed as Trump prepares to visit Michigan to commemorate the first 100 days of his second term in the White House. According to a report, a proclamation putting the adjustments into effect may be signed as early as 29 April, before Trump’s scheduled speech in Macomb County.

    This county is a centre for auto manufacturing and a stronghold of blue-collar people that Trump claims his tariffs are intended to support. Additionally, the change would be the most recent development in Trump’s constantly shifting trade policy, which began earlier this month when he decided to halt increasing tariffs on dozens of trading partners in order to facilitate negotiations.

     The anticipated adjustments occur shortly before the 25% tariffs on foreign vehicle parts go into force on May 3.

    Based on the value of their US car manufacturing, manufacturers would be eligible to get a partial reimbursement for tariffs on imported auto parts under the proposed adjustments, the official said. With a phase-out intended to encourage automakers to move more of their supply chain into the US while also providing them time to adjust, the scope of those reimbursements would gradually decrease.

    Players Welcoming the Move

    A close-knit North American supply chain might be disrupted by Trump’s tariffs, so automakers, dealers, and component suppliers had begged for some reprieve. In a statement, Jim Farley, the CEO of Ford Motor Company, said that Ford is pleased with President Trump’s decisions.

    This will lessen the negative effects of tariffs on suppliers, customers, and automakers. Ford and the administration will keep collaborating closely to promote the president’s vision for a robust and expanding American car industry.

    “GM feels the president’s leadership is helping level the playing field for companies like GM and allowing us to invest even more in the US economy,” said Mary Barra, CEO of General Motors Co., in a statement.

    In a letter to the government last week, industry associations warned that tariffs on imported auto parts could increase the cost of US manufacturing plants, endangering attempts to boost local vehicle production.

  • Trump Walks Back Threat to Fire Fed Chief Powell, Markets Rebound

    Federal Reserve Chairman Jerome Powell needn’t worry about losing his job anytime soon, President Donald Trump made clear Thursday evening. That’s because Trump, despite previous public criticisms of Powell, has no current plans to put someone else in charge of the U.S. central bank. From the Oval Office, Trump told reporters he has “absolutely no plans” to replace Powell, who has come under fire from Trump for not cutting interest rates more rapidly.

    Trump’s recent sharp comments, including calling Powell a “major loser,” had spooked markets last week, triggering a rapid selloff in US stocks, bonds, and the dollar. But with the President’s latest assurance, financial markets seemed to find their footing again, with Asian and US indices nicely rebounding on Wednesday. Analysts think Trump is trying to influence monetary policy via his remarks, rather than trying to pull Powell out of his role. But they also voice concern that all this is undermining the appearance of central bank independence.

    Markets Breathe Easier as Powell Keeps Seat

    Following Trump’s toned-down remarks, investor feeling shifted to the upbeat. Asia’s key stock markets surged in morning trading. Japan’s Nikkei 225 index shot up 1.9%. Hong Kong’s Hang Seng index surged 2.4%. Even the Shanghai Composite, which had been struggling, inched up 0.1%. In the U.S., stocks continued to rise sharply with the S&P 500 closing 2.5% higher on Tuesday and the Nasdaq rising 2.7%. Futures markets suggested that this optimism would carry into midweek.

    The bounce reflects the relief that leadership at the Federal Reserve is likely to remain stable, at least in the short term. Many investors feared a leadership shakeup could trigger even more policy confusion at an already confusing time when global economic signals are decidedly mixed.

    Trade Tensions Still Cast Long Shadow

    Although Powell’s position looks secure for the time being, the bigger issue of trade seems to be going unresolved. Trump gave a hint during the week that he might take a softer line with China, specifically, he suggested that he might lower tariffs if that country comes to the negotiating table. He didn’t, however, suggest that he might eliminate them. Perhaps more telling was what Treasury Secretary Scott Bessent said during the week. He called the current trade environment “unsustainable” and expressed the view that a de-escalation of tensions was necessary.

    Even if markets are reacting well at the moment, there is still a lot of uncertainty around the prospects for free trade. The friction between the U.S. and China, not to mention other global partners, is continuing to cloud the outlook. Policymakers are obviously concerned about inflationary pressure arising from tariffs, especially when the bullish factors for the stock market today are tied to fears that we are heading for a recession.

  • Trump’s Export Curbs Hit Nvidia, AMD as AI Chip Sector Reels

    The semiconductor sector faced a sharp pullback on Wednesday after the U.S. imposed new export restrictions on advanced artificial intelligence (AI) chips, and the leading chipmakers Nvidia and AMD bore the brunt of the action. Nvidia’s stock tumbled 6.9% after it disclosed a USD 5.5 billion impact tied to inventory, purchase commitments, and reserves related to its H20 chip lineup. AMD followed suit, warning of charges as high as USD 800 million that will impact its financials almost immediately because the MI309 chips are currently in production.

    This development shows the deepening of the tech conflict between the U.S. and China, which is particularly sharp in AI. Investors are already anxious about the friction between the two countries, and they got even more nervous with inklings that tariffs might become part of the picture.

    Licensing Mandates Raise Barriers for U.S. Chipmakers

    Earlier this month, the U.S. government warned Nvidia that future shipments of its H20 chips, or any equivalent semiconductors capable of comparable memory or interconnect speeds, would be subject to licensing. The required licenses, which the government is likely to deny, permit the U.S. to restrict exports. Such a restriction would tug at Nvidia’s bottom line. Approximately 13% of Nvidia’s total revenue comes from China, per CFRA Research.

    This shift in regulation could not only reduce income in the near term but also possibly give a competitive edge to Chinese firms. CFRA analysts say the intensified enforcement action might allow China-based companies, like Huawei, to gain more market share in artificial intelligence semiconductor development at a time when those companies have largely fallen behind in that particular technological race.

    Tariff Uncertainty and Global Fallout Loom Large

    The potential for more U.S. tariffs adds to the pressure. So far, certain electronics and semiconductors have been exempted. But industry analysts warn this leniency may not last. The sector is closely watching for the next round of trade measures from the Trump administration, measures that could target a much broader range of technology products.

    Global suppliers are in no way shielded from these developments. ASML, a major Dutch supplier of semiconductor fabrication equipment, admitted to greater uncertainty coming from the latest tariff signals. The firm underscored that the overall macro environment is highly unpredictable and likely to remain volatile in the near term.

    Investors Face Long-Term Risk Landscape

    Experts are warning that instability in policy, particularly in the important technology sector, could continue to depress investor confidence. Bank of America pointed out that an oversupply of bad news for certain industries may persist until a number of important decisions are made, including the following:

        1.  Whether China will retaliate against U.S. companies.

        2.  Whether the U.S. will take reciprocal measures against Chinese firms.

        3.  What the broader rules will be concerning exports of AI to China and other countries.

    At present, the worldwide competition for AI supremacy seems closely linked with political maneuvering. It’s a modern-age race, bound up with global power and wealth. This makes the terrain all the more complex and uncertain for companies and investors.

  • India Becomes First Global Market to Recover from Trump Tariff Shock

    On Tuesday, India’s equity markets surged, marking a remarkable recovery as trading resumed after an extended weekend. The NSE Nifty 50 Index rose 2.4% and is currently above where it was earlier this month. This brings it to a place where it’s not just recovering from recent declines but is now outperforming most other equity indices across the globe. So, it’s safe to say that India has fully recovered from the market losses triggered by the new wave of U.S. tariffs under President Donald Trump. Brace yourself, because the Nifty is busting out to the up side.

    Global investors are recognizing how resilient the Indian markets are compared to worldwide volatility. Despite a broader sentiment of caution in Asia, India’s ability to pay off in a very short amount of time has added to its aura as a relatively safe investment destination in a very uncertain worldwide environment.

    Domestic Strength Shields India from External Shocks

    One of India’s main strengths is its large, consumption-oriented economy. This makes it relatively insulated from the sort of economic slowdown that might befall countries more reliant on exports, particularly to the U.S. In India, domestic demand has been strong; inflation, thanks to some easing in commodity prices, is showing signs of stabilizing.

    India’s careful diplomatic stance has brought it success. At a time when the U.S.-China trade tensions are reaching new heights, India has chosen to keep an open dialogue with Washington and is working toward a potential trade agreement. The same holds true for India and Europe. This is the way to tout a central-staging area in the Median-South route and place both India and the U.S. on a strategic, economic, and trade win-win path.

    Investor Sentiment on the Mend

    Even with a shaky first few months that saw the Indian stock market shed a whopping USD 16 billion in foreign investment, new developments are giving the economy reason to smile. For one, the Reserve Bank of India seems poised to cut interest rates, which should boost domestic demand. Crude oil prices have also fallen so far that the finance ministry is now expecting a 25 percent savings over last year’s costs. That should also help consumer spending.

    Valuation factors are working favorably for the Nifty 50, which is now trading at a lower multiple than its own recent past. Indian equities, as represented by the Nifty 50, have an earnings yield that is above the yield on 10-year government bonds, and this risk premium is the widest it has been for quite some time. Both factors combined are driving the sharp turnaround in investor sentiment.

    The minimal direct trade with the United States—accounting for just 2.7% of U.S. imports last year—has helped insulate India from the global trade fallout. By way of comparison, China and Mexico together represent 14% and 15% of U.S. imports, respectively. India’s direct trade exposure is a fraction of that, and thus it isn’t affected nearly as much. So long as oil prices stay in check and policy support is unabated, India seems likely to stay a standout performer in the global investment landscape.

  • Trump Tariffs Trigger INR 11.3 Lakh Crore Erosion in Indian Markets

    April witnessed a sharp setback for Indian equity markets, with investors seeing the wipeout of INR 11.3 lakh crore in market capitalization among BSE-listed firms. The turbulence started with the escalation of global trade tensions, which was followed by the U.S. announcing, instead of a negotiated solution, a series of aggressive tariffs targeting multiple countries, including India and China.

    Between April 2 and mid-April, the BSE Sensex suffered a decline of 1,460 points, reflecting a 1.9% drop. The total market cap of listed companies went down from INR 412.98 lakh crore to INR 401.67 lakh crore, highlighting the depth of investor anxiety.

    India Caught in US-China Crossfire

    Although the most recent tariffs were directed at China, Indian imports took a hit as the U.S. slapped on a 26% duty. In turn, the Indian markets were jolted as Chinese authorities responded to the tariff hikes by levying 125% on a range of U.S. exports. While no one is sure how this will end, the announcement stoked fears that this is morphing into a full-on trade war, with global ramifications. Even though the Indian markets have proven to be more resilient than some others, we have not been insulated from the increased volatility that this is causing.

    Temporary Relief Fails to Calm Nerves

    The decision by the U.S. administration to put a hold on the tariffs for 90 days brought some instant relief. While it didn’t include China, it did cover most of America’s other trading partners, which are responsible for a lot of the trade going on across the globe. That announcement actually brought a lift to the market, with the Indian benchmark indices, and a few other global indices, bumping up by almost 2%. Then again, even with this temporary pause, people are still concerned about the trade situation and what it means for corporate profits, especially if these trade squabbles end up dragging the U.S. into a recession.

    Eyes on FY26 for Recovery Prospects

    The second half of FY26 could turn out to be a vital watershed for the Indian stock market, not just for equities but for the entire capital market. If global conditions stabilize and corporate earnings show signs of revitalization, Indian equities could regain momentum in the second half of FY26. Despite the current atmosphere of unsettling challenge, the Indian macroeconomic fundamentals hold solid, with attractive valuations that could trigger inflows from long-term investors abroad.

    In the immediate term, the market is seen as highly susceptible to swings in sentiment. It could just as easily trend downward as upward. A downward trend would likely see a broad swath of stocks head lower. Conversely, a period of upward movement would likely be concentrated in a narrow band of stocks. That means, in all probability, U.S. equity investors are going to have to steel themselves for more volatility in the upcoming weeks.

  • ICEA Claims India’s Electronic Exports to US will be 20% Less Expensive than China

    The industry group ICEA stated on April 13 that after the Trump administration lifted duties on a variety of consumer electronics, Indian shipments to the US of smartphones, laptops, and other devices are anticipated to become 20% less expensive than those from China. The announcement, which was made over the weekend, is thought to be a significant boon to India’s quickly expanding electronics manufacturing industry. Smartphones, tablets, laptops, flat-panel displays, and specific semiconductor components will no longer be subject to the reciprocal tariffs that the US previously placed on nations like China, India, and Vietnam.

    Advantage to India and Vietnam Over China

    The exemption suggests that when it comes to selling certain goods to the US, India and Vietnam now have a significant tariff advantage over China. The chairman of the India Cellular and Electronics Association (ICEA), Pankaj Mohindroo, pointed out that 20% of iPhones, laptops, tablets, and watches are still made in China. For China, just the reciprocal duty has been eliminated. All smartphones, computers, tablets, and iPhones that are exported to the US are duty-free from India. Additionally, all Samsung and other smartphone, laptop, and tablet exports to the US are duty-free in Vietnam. Therefore, Vietnam and India both have a 20% tariff advantage over China and are subject to similar levies on these goods. After weeks of worrying about possible disruptions in exports, ICEA, which represents big businesses like Apple, Foxconn, and Dixon, said the exemption was a welcome relief. The chairman went on to say that there won’t be any more unusual disruptions.

    India Becoming a Hub for iPhone Production

    According to Union minister Ashwini Vaishnaw, India has become a major location for Apple’s production, with iPhone exports alone exceeding INR 1.5 lakh crore in 2024–2025. This year, mobile phone exports totalled over INR 2 lakh crore, a 55% increase over the previous fiscal year. Given the ongoing trade tensions between the US and China, industry insiders think that this most recent development enhances India’s position in the global electronics supply chain. The head of the India Electronics and Semiconductor Association (IESA), Ashok Chandak, described the tariff exemption as a major, if potentially temporary, relief for multinational tech producers.

    He claimed that although the short-term export frenzy has subsided, India’s long-term prospects are still strong. With over $250 billion in electronics imports from the US, of which 30% still originate in China, Chandak went on to say that India has a lot of space to develop from its existing $12 billion base. He went on to say that now is a critical time for Indian companies to expand, refocus their plans, and solidify their place in the global electronics value chains. India needs to put even more effort into creating sustainable, long-term competitive advantages if it hopes to reach its full potential.

  • Trump Walks Back Tariff Exemption Reports, Signals Tougher Trade Stance

    On Sunday, U.S. President Donald Trump made it clear that no nation would be excluded from the recent tariffs put in place under his trade policy. This was in direct contrast to earlier indications that some electronic items might be exempt. Trump’s statement came just a couple of days after U.S. Customs and Border Protection issued word that certain consumer electronics could indeed be tariff-free. That led to a lot of head-scratching among industry participants, to say nothing of the markets.

    Trump intensified a strong posture toward trade deficits with his recent Truth Social post. In it, he swore that not one person would get away with what he considers to be trade balance cheating. He told Americans not to worry, because the new trade arrangements were going to hit China and everyone else so hard that they would be face-planted with no way to get up.

    Electronics Face Tariff Shuffle, Not Exemption

    Although Friday’s Customs guidance suggested that some sought-after electronics might escape the upcoming tariffs, Trump insisted that wasn’t the case. Trump said that the authorities are merely changing the classification of certain items to different tariff categories to ensure they stay included, even though Customs had previously said they might be exempt.

    “Nobody is getting “off the hook” for the unfair trade balances, and non monetary tariff barriers, that other countries have used against us, especially not China which, by far, treats us the worst! There was no tariff “exception” announced on Friday. These products are subject to the existing 20% fentanyl tariffs, and they are just moving to a different tariff bucket,” Trump said.

    This interpretation was backed up by White House adviser Stephen Miller, who said that goods were still be subject to tariffs, under the terms set forth in the initial declaration that covers imports from countries like China, Canada, and Mexico.

    National Security Investigations to Expand Scope

    Trump’s Sunday remarks also set up a larger context: an upcoming probe into the whole electronics supply chain, characterized as a national security issue. He asserted that America has become perilously dependent on foreign factories, especially from the sorts of countries he branded as ‘hostile trading partners.’

    Expected to be central to the forthcoming probes are semiconductors and critical technological infrastructure. The suggestion is to revive domestic manufacturing and, in the process, eliminate dependencies that could leave the US open to external economic shocks or geopolitical tension.

    Connecting his tariff strategy to his larger economic vision, Trump declared the country to be in a “Golden Age” of sorts. He cited the recent tax and regulatory relief passed by Congress as a stimulus to a returning economy. Central to his 2025 campaign message are these planks: job creation; a push for domestic production; and ‘fair’ trade, especially with countries like China.

  • Trump’s Tariff Reversal Driven by Bond Market Panic, Not Stock Decline

    In contrast to his initial term, President Trump appeared disconcerted to the recent chaos in the equity market this time around. Even when there was a week-long selloff, which some analysts said, took away $4 trillion in market value from investors’ hands, there was no immediate shift in the White House’s aggressive trade posture. But behind the scenes, a more pressing concern was brewing:  the sharp deterioration in the bond market. It was not falling stock prices but rising yields and a broad selloff in US government debt that forced a change in the Trump administration’s tone.

    Bond Selloff Rings Alarm Bells

    Bonds issued by the US government are usually thought of as safe investments that people run to in times of trouble. But that confidence was shaken when the yields on US Treasury bonds rocketed up from 3.9 percent to 4.5 percent in just a few days, the highest they’ve been since February. And most of the pressure to push prices down and yields up was coming from the foreign holders of US bonds,  especially in Japan and China, who were dumping the debt out of an increasingly panicked sense of what the future holds. The US has over $35 trillion in bonds out there, and these rising yields mean it’s getting to be far more pricey to issue new ones and to roll over old ones. That has direct implications for necessary federal spending programs like Social Security and Medicaid.

    A Key Voice Emerges Inside the White House

    What also altered the scenario was the return of sway for Treasury Secretary Scott Bessent. A seasoned figure from Wall Street, Bessent had been pushed to the  side along with more hawkish advisers in the past few weeks. But with  investor confidence being shaken and the bond market flashing warning signs,  Bessent’s arguments have gained sway. Given the recent reports, it seems that  Bessent was instrumental in securing a 90-day timeout on new tariffs, which  is something that obviously Trump signed off on. Bessent’s approach seems to  have won out over the more aggressive advice of commerce secretary Howard  Lutnick and senior counsel Peter Navarro. His public statement marking this hiatus was a rare moment of moderation from within an otherwise combative administration.

    Corporate Credit Markets Face the Ripple Effect

    The bond selloff has other implications too, especially for companies that are trying to raise money in a now-very-challenging credit environment. With corporate credit spreads widening and stock valuations tumbling in response to rising rates, companies are facing a more adverse setting in which to raise funds. 

    Here’s another way to look at it: The last time investors were demanding this kind of premium between US junk-rated and Euro junk-rated bonds, back in 2008, the US economy was in the midst of a slow-motion meltdown.

  • To beat Trump Tariffs, Apple Airlifts 600 Tonnes of iPhones from India

    After increasing manufacturing in India to try to get around President Donald Trump’s tariffs, tech giant Apple hired cargo planes to transport 600 tonnes of iPhones—up to 1.5 million—to the US from India. As per a media report, the move’s specifics shed light on the American smartphone company’s change of plan. Apple has taken this step to increase its stock of iPhones in the US. Given Apple’s heavy reliance on imports from China, the primary location for iPhone manufacturing, which is subject to Trump’s maximum tariff rate of 125%, analysts have cautioned that the price of iPhones in the United States may rise. That amount is significantly more than the 26% duty on Indian imports, which is currently on hold after Trump announced a 90-day truce this week that does not apply to China. Apple “wanted to beat the tariff”, as reported by a media house. The corporation pushed Indian airport authorities to reduce the 30-hour customs clearance period at Chennai airport in Tamil Nadu’s southern region to six hours.

    Special Arrangements Made to Airlift iPhones

    Apple uses a similar approach at various Chinese airports, and the so-called “green corridor” structure at the airport in the manufacturing base in India was modelled after it. According to an Indian government official, since March, about six cargo jets with a capacity of 100 tonnes apiece have taken off, including one this week right before new tariffs went into effect. As reported in the media, an iPhone 14 and its charging connection weigh approximately 350 grams (12.35 oz) when wrapped. This suggests that, after deducting some packaging weight, the 600 tonnes of freight included roughly 1.5 million iPhones. According to Counterpoint Research, India now accounts for a fifth of all iPhone imports into the US, with China accounting for the remaining portion. Apple sells over 220 million iPhones annually worldwide.

    Foxconn Plant Operational of Sundays as Well

    Apple increased air shipments to India in order to reach its target of a 20% increase in regular production at iPhone factories. According to a media site, the company has increased staff in order to achieve this aim. Also, it has temporarily extended production operations at the largest Foxconn India facility on Sundays as well. Last year, the plant produced 20 million iPhones, including the most recent versions, the 15 and 16. Apple has set up India for a crucial role as it expands its production outside of China. Its two primary suppliers, Foxconn and Tata, currently operate three factories there, with two more under construction.

  • Trump Freezes Most Tariffs for 90 Days, Escalates Trade War with China

    U.S. President Donald Trump declared a 90-day halt on his sweeping tariff hike aimed at most nations, an apparent softening of a trade policy that had upset otherwise calm global markets. But it still continues to hit China hard: the announcement disclosed that its planned steep tariff of 104 percent on Chinese imports would be raised instead to a whopping 125 percent.

    China Faces the Heat

    Trump has raised the tariff on Chinese imports, first to 104%, and then, somewhat absurdly, to 125%. He claimed these tariffs were long overdue and justified by what he called a long history of Chinese trade exploitation and a lack of respect for global trade rules.

    China lost no time to reply. Within hours, it slapped an 84 percent tariff on U.S. goods, escalating tensions in a situation that looks ever more like a trade war. This latest confrontation follows earlier rounds of tariff retaliation and adds additional strain to a relationship that was already defined by suspicion and economic rivalry.

    Global Fallout and Market Whiplash

    The very first imposition of Trump’s all-encompassing tariffs had prompted big sell-offs in all the main stock exchanges around the world. Yet, after the 90-day delay was announced on these tariffs, at least for now, the price for several shares shot back up.

    The Dow Jones gained nearly 3,000 points. That’s close to an 8 percent increase. The S&P 500 was up by over 9 percent. And would you believe it, the tech-heavy Nasdaq was up more than 12 percent in just one day?

    Even with this rally, analysts are still uncertain. Trump’s tariffs on steel, aluminum, and certain drugs are still making the rounds. And there are more and more questions being raised about the potential fallout for the Indian pharmaceutical industry, which supplies almost 40% of the generics U.S. consumes. This could be Trump’s next target.

    Harsh Rhetoric, Unpredictable Strategy

    Trump’s language has garnered even his supporters’ criticism. He asserted that global power brokers are pleading to negotiate, and he used the most basic expressions imaginable to convey their enthusiasm. This, of course, is just how the guy talks, but it led some voices on Trump’s right flank to question whether his papal visit part two is really what America needs right now.

    Although his tone is confrontational, Trump insists that his approach serves American workers and not the interests of multinationals. Even allies, though, are starting to wonder whether his aggressive trade agenda is worth the long-term cost.