India set to raise tariffs on some US goods

US goods and services trade with India stood at an estimated $142.1 billion in 2018. (File/AFP)
Updated 15 June 2019
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India set to raise tariffs on some US goods

  • The government had said last June it would raise import taxes on a slew of US goods including almonds and apples
  • It delayed raising tariffs several times as trade talks between the world’s two biggest democracies raised hopes of a resolution

NEW DELHI: India has decided to raise tariffs on imports of 29 goods from the US after having deferred the move several times since announcing it last year, media reported Saturday.
The government had said last June it would raise import taxes on a slew of US goods including almonds and apples, apparently irked by Washington’s refusal to exempt New Delhi from higher steel and aluminum tariffs.
But it delayed raising tariffs several times as trade talks between the world’s two biggest democracies raised hopes of a resolution.
However President Donald Trump’s decision to strip New Delhi of its preferential trade status earlier this month appears to have triggered the latest Indian move.
There would be no further delays in imposing the retaliatory tariffs, the Economic Times reported, quoting a government official, with the new taxes due to take effect from Sunday.
The Press Trust of India news agency said the finance ministry would make a formal announcement soon, although it had already conveyed its decision to the United States.
The trade tensions come despite Washington’s effort to boost ties with India as a counterweight to China and Trump’s stated good relations with Prime Minister Narendra Modi.
Trump and Modi are set to meet at the G20 summit on June 28-29 in Osaka where the sticky trade issue is likely to be taken up.
It is also likely to figure during talks with US Secretary of State Mike Pompeo who is set to visit India for talks later this month.
On Wednesday Pompeo had said the US was open to dialogue with India and would “broach some tough topics.”
US goods and services trade with India stood at an estimated $142.1 billion in 2018. The US trade deficit with India was $24.2 billion, according to official data.
Washington is already engaged in a full-blown trade war with India’s regional rival China.


Japan’s Nissan reportedly to double global job cuts to over 10,000

Updated 24 July 2019
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Japan’s Nissan reportedly to double global job cuts to over 10,000

  • The global plan includes the 4,800 job cuts announced in May
  • It will mostly be at factories overseas with low utilization rates

TOKYO: Nissan plans to expand job cuts to over 10,000 to help turn around its business, a person with direct knowledge of the matter said on Wednesday, as profit continues to plunge while the automaker grapples with management upheaval.
The global plan includes the 4,800 job cuts announced in May and will mostly be at factories overseas with low utilization rates, the person said. It will be announced along with financial results on Thursday, said the person, who declined to be identified as the information was still private.
Nissan declined to comment on the job cuts. Its shares ended the day up nearly 1.0 percent.
Analysts expect Nissan to post one of its weakest quarterly performances since the 2008 global financial crisis when it announces its first-quarter earnings on Thursday.
On Wednesday, the Nikkei business daily reported the automaker would report operating profit of “several billion yen” for the quarter, around a 90 percent drop from 109.1 billion yen a year earlier. Analysts estimate a decline of 64 percent.
The job cuts, exceeding 7 percent of Nissan’s 138,000-strong workforce, come as Nissan struggles to improve dismal profit margins in the United States, a key market where former Chairman Carlos Ghosn for years pushed to aggressively grow market share during his time as chief executive.
Years of heavy discounting to grow sales in the world’s second-biggest auto market have left Nissan with falling demand for the Altima sedan and other models, a cheapened brand image and low resale values, while the costs to offer high discounts have hit its bottom line.
The latest job cuts also highlight the extent of problems facing Chief Executive Hiroto Saikawa, who is also grappling with fractured relations with French alliance partner Renault following the arrest of their shared former chairman.
Ghosn has been charged with financial misconduct and denies wrongdoing.
Saikawa kept his job in a vote at an annual shareholders meeting last month, though he had to fight off a rare rebuke by top proxy advisory firms who urged shareholders not to reappoint him considering he was groomed for leadership by Ghosn.
In May, Nissan forecast a 28 percent plunge in annual operating profit, adding to a 45 percent fall in the previous year, putting the automaker on course for its weakest earnings in 11 years.
While addressing faltering performance, Saikawa also has to repair trust with Renault, which has deteriorated in past months as the French automaker sought more control within Nissan.
Renault owns 43 percent of the Japanese automaker, which in turn holds a 15 percent, non-voting stake in its partner. Saikawa, who has sought more equal footing with Renault, last month said Nissan would postpone discussions on the alliance’s future to prioritize performance.
The extended job cuts were first reported by Kyodo late on Tuesday.