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Trump’s tariff impact! US trade deficit falls 24% as imports plunged in August; government shutdown delayed data release – The Times of India
The US trade deficit narrowed by about 24 per cent in August as sweeping tariffs imposed by President Donald Trump reduced imports, according to a delayed Commerce Department report released Wednesday. According to Associated Press, citing the report, the trade gap fell to $59.6 billion in August from $78.2 billion in July. Imports declined 5 per cent to $340.4 billion as businesses slowed purchases from abroad after stockpiling goods ahead of tariffs that took effect on August 7. Exports rose 0.1 per cent to $280.8 billion. Trump has upended decades of US free-trade policy by levying broad duties on most trading partners as well as on products such as steel, copper and automobiles. He argues that chronic trade deficits reflect foreign nations exploiting the US. Economists say tariffs are contributing to inflation by raising costs that importers largely pass to consumers. Despite August’s pullback, the trade deficit has widened in 2025, reaching $713.6 billion through August — up 25 per cent from $571.1 billion in the same period last year. A narrower trade gap typically supports economic growth because imports subtract from gross domestic product. “August’s smaller trade deficit will be a tailwind for third-quarter real GDP, since it means more US spending went to domestically-produced goods and services,” said Bill Adams, chief economist at Comerica Bank. The release was delayed due to the government shutdown. Public anger over living costs contributed to Democratic gains in the November 4 elections. Days later, Trump rolled back tariffs on items such as beef, coffee, tea, fruit juice, cocoa, spices, bananas, oranges, tomatoes and some fertilisers, acknowledging their effect on prices. The Supreme Court is weighing the legality of the tariffs. During a November 5 hearing, justices questioned whether a president can impose open-ended duties under emergency powers without approval from Congress.
Business
US Supreme Court tariff ruling adds uncertainty to global trade outlook, offers limited relief: Analysts – The Times of India
The US Supreme Court’s decision striking down tariffs imposed by President Donald Trump has done little to ease pressures on the global economy, with analysts warning that uncertainty over future trade policy may instead intensify. Economists said the ruling, while limiting Trump’s use of tariffs under emergency powers, is unlikely to change the broader trajectory of global trade tensions as Washington explores alternative ways to impose duties, reported Reuters.
“In general, I think it will just bring in a new period of high uncertainty in world trade, as everybody tries to figure out what the U.S. tariff policy will be going forward,” said Varg Folkman, analyst at the European Policy Centre think tank. “In the end it’s going to look pretty much the same.”Following the judgment, Trump announced new global tariffs of 10 per cent for an initial 150-day period and acknowledged uncertainty over whether funds collected under the annulled levies would be refunded.Analysts said multiple questions remain unresolved, including what new tariffs could emerge and whether countries that negotiated agreements with the US to soften tariff impacts may reopen those arrangements.Economists at ING bank said, as quoted Reuters, the ruling does not mark an end to tariff-driven trade policy. “The scaffolding has come down, but the building remains under construction. No matter how today’s ruling reads, tariffs are here to stay.”The court’s decision applies only to tariffs introduced under the International Emergency Economic Powers Act (IEEPA), legislation designed for national emergencies. Those levies are estimated to have generated more than $175 billion in revenue.According to Global Trade Alert, the ruling reduces the trade-weighted average US tariff rate from 15.4 per cent to 8.3 per cent. Countries facing higher tariffs — including China, Brazil and India — could see double-digit percentage-point reductions, though duties remain elevated.Countries that struck bilateral deals with Washington to mitigate tariff impacts are now expected to assess whether the ruling offers grounds to renegotiate terms.Bernd Lange, chair of the European Parliament’s trade committee, said lawmakers would evaluate the implications while moving toward ratification of the EU-US trade pact.“The era of unlimited, arbitrary tariffs … might now be coming to an end,” Lange said on X. “We must now carefully evaluate the ruling and its consequences.”Britain, meanwhile, said it expects its preferential trading arrangement with the United States — including a baseline 10 per cent tariff — to remain unchanged.Despite years of tariff disruptions, the global economy has broadly held up. A Federal Reserve Bank of New York report indicated that much of the tariff burden has been absorbed by US consumers.The International Monetary Fund projected global growth at a “resilient” 3.3 per cent in 2026 in its latest World Economic Outlook update.China reported a record trade surplus of nearly $1.2 trillion in 2025, supported by stronger exports to markets outside the United States as producers adapted to tariff pressures.Some countries may therefore opt to retain existing bilateral deals rather than risk renewed instability, Folkman said, referring to the uncertainty triggered by Trump’s “reciprocal” tariffs in 2025.However, Niclas Poitiers, research fellow at economic think tank Bruegel, told Reuters political uncertainties surrounding the EU-US trade agreement remain significant.“There could be circumstances in which the deal unravels,” he noted.
Business
Donald Trump ups tariffs day after Supreme Court ruling against him
The president will increase import taxes to 15% on most products coming into the US from Tuesday.
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Pharma exports grow 9.4% to $30.47 billion in FY25; industry eyes double-digit expansion by 2026-27 – The Times of India
India’s pharmaceutical exports rose 9.4 per cent in 2024–25 to $30.47 billion, with the industry targeting double-digit growth in 2026–27 amid efforts to expand global market access, the commerce ministry said on Saturday, PTI reported. Issues related to pharmaceutical exports were discussed during a Chintan Shivir held in Ahmedabad between government officials and industry representatives, the ministry said.“The interaction underlined the government’s focus on enabling conditions for sustained export acceleration, with industry indicating readiness to target double-digit growth in 2026-27,” it said.The domestic pharmaceutical sector, currently valued at around $60 billion, is projected to grow to $130 billion by 2030.India ranks third globally in pharmaceutical production by volume, exporting medicines to more than 200 markets worldwide. Over 60 per cent of exports are shipped to stringent regulatory markets, according to the ministry.The United States accounts for 34 per cent of India’s pharmaceutical exports, while Europe contributes 19 per cent.Exporters were also briefed on opportunities emerging from recent trade engagements with key partners, including the European Union and the United States.“Engagement with the European Union was discussed in the context of a $572.3 billion pharmaceuticals and medical devices market, while a bilateral trade arrangement with the United States can further improve market access and price competitiveness for Indian pharmaceutical companies,” the ministry said.The commerce ministry added that it will continue consultations with exporters, regulators and Indian Missions abroad to ensure timely identification and resolution of sectoral issues, with the aim of supporting sustained growth in pharmaceutical exports across global markets.
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