Avestix Intell’s Post

Discover which companies and industries are set to succeed in a world of rising global import tariffs. 🌍 Get into the impacts on domestic manufacturing, agriculture, energy, technology, and more. Read on to see how protectionist policies can change the economy: https://hubs.la/Q02Fqy5-0 #Avestix #AVXI #Economy #Business #Trade #Manufacturing #Technology #Agriculture #Energy #GlobalTrends

Policy-focused: Why do Indian industries keep asking for higher import duties despite world-average tariff levels? Deep dive into: - Sector-specific duty framework - China's evolving export strategy - Solutions beyond blanket tariffs https://lnkd.in/eECuBFFk #MakeInIndia #TradePolicy #EconomicGrowth

A closer look at "Why broad-based import tariffs can hurt exports and manufacturing jobs" (https://lnkd.in/e_6ByKHf) in today's Briefing Book: across-the-board tariff hikes can inhibit long-term competitiveness because manufacturers rely on imported inputs and contribute disproportionately to overall exports and manufacturing job growth.

Solar panel import tariffs increase US module prices by up to 286%

Why Import Tariffs are Detrimental to the US Economy While tariffs might appear as an effective tool for protecting domestic industries, their broader economic implications can be detrimental. 1. Higher Consumer Prices Import tariffs raise the cost of foreign goods, resulting in higher prices for consumers. This inflationary pressure affects household budgets, leading to decreased purchasing power and a potential decline in living standards. Example: Consider the tariffs on electronics and appliances; such tariffs directly increase the cost of these goods, forcing consumers to pay more for everyday essentials. 2. Retaliation and Trade Wars Economic Impact: Tariffs can provoke retaliatory measures from other countries, leading to trade wars that disrupt international supply chains. This uncertainty can harm export sectors and lead to job losses in industries reliant on global markets. Example: US-China trade tensions resulted in tariffs on US agricultural products, significantly impacting American farmers who rely on exports for their income. 3. Reduced Economic Efficiency Tariffs distort market dynamics by artificially altering supply and demand. By protecting inefficient domestic industries, they discourage innovation and competitiveness, leading to a less dynamic economy. Example: Industries shielded by tariffs may lack the incentive to innovate, reducing their long-term global competitiveness and hindering overall economic growth. Isn't this what we are accusing China of? 4. Strain on International Relations Economic Impact: Tariffs strain diplomatic relationships, creating barriers to cooperation in other areas like security, environmental policy, and global health. This strain can lead to geopolitical tensions that further destabilize markets. Example: Tensions with key allies over tariffs can undermine efforts to collaborate on broader international challenges, weakening the US's strategic position globally. 5. Impact on Small and Medium Enterprises (SMEs). Smaller businesses often lack the resources to absorb increased costs or shift production. Tariffs can, therefore, disproportionately affect SMEs, which are crucial for job creation and economic diversity. Example: SMEs importing components for manufacturing may face increased costs, squeezing margins and potentially leading to closures or layoffs. Conclusion: While the protection of domestic industries might seem appealing in the short term, the long-term economic repercussions of import tariffs include higher consumer prices, retaliatory trade actions, reduced efficiency, strained international relations, and negative impacts on SMEs. We should foster sustainable economic growth, the US should focus on policies that encourage innovation, strengthen global trade partnerships, and enhance competitiveness without resorting to protectionist measures. Collaboration with international partners are important for building a resilient and thriving economy.  

Tariffs (whether threatened or implemented) will impact produce trade across the US, Mexico and Canada. Please see my latest article on the likely impacts of tariffs. #greenhouses #agriculture #CEA #ControlledEnvironmentAgriculture https://lnkd.in/edG6mu_b

Budget 2024: Agro-chemical sector seeks hike in import duties The agrochemical sector in India is pushing for an increase in import duties to combat the influx of chemicals from China. Industry experts are advocating for tariffs to level the playing field for domestic players and address the trade deficit. Measures such as a PLI scheme are also being recommended to enhance manufacturing capabilities. Read more: https://lnkd.in/gMArXFyv #Budget2024 #AgroChemical #ImportDuties #ETManufacturing

🌏 U.S. Tariffs Prompt Manufacturers to Relocate Operations to Thailand 🇹🇭 In a significant shift in global manufacturing dynamics, U.S. tariffs are driving companies to move their operations to Thailand. This trend is particularly evident in sectors such as electric vehicles ⚡, smart electronics 💻, home appliances 🏠, and high-tech industries 🛠️. Manufacturers are increasingly seeking to avoid tariffs imposed by the U.S., especially in light of escalating trade tensions with China 🇨🇳 and other nations that maintain trade surpluses with the United States. As a result, Thailand is emerging as an attractive destination for investment 💰. Vikrom Kromadit, chairman of Amata Corporation, emphasized that Thailand stands to gain substantially if the new U.S. administration implements high import tariffs on Chinese goods. He noted that this scenario could lead foreign investors from China and Taiwan 🇹🇼 to relocate their operations to Thailand, enhancing the country's manufacturing landscape. Compared to neighboring countries like Vietnam 🇻🇳 and Malaysia 🇲🇾, which are currently grappling with energy supply shortages ⚡, Thailand offers a more favorable investment climate. The nation's incentives and robust infrastructure make it an appealing choice for manufacturers looking to establish or expand their operations. The influx of Chinese investment is already notable, with a marked increase in industrial land purchases in Thailand, particularly in key regions such as Rayong and Chon Buri. This trend is expected to continue as geopolitical tensions and trade issues persist. Thailand is also positioning itself as a prime location for high-tech industries, including data centers 🖥️ and cloud computing ☁️ services. The country benefits from strong infrastructure and a commitment to renewable energy resources 🌱, making it an ideal environment for tech-driven investments. The Thai government is actively promoting investments in renewable energy projects, including solar ☀️ and wind power 🌬️, aligning with the interests of potential investors seeking sustainable solutions. In terms of investment growth 📈, statistics reveal a remarkable surge in applications. In the first nine months of the year alone, investment applications skyrocketed by 42% to $21.7 billion, marking a ten-year high. This increase reflects a growing confidence among investors in Thailand's economic prospects. As global trade dynamics continue to evolve due to U.S. tariffs and shifting geopolitical landscapes 🌐, Thailand is poised to capitalize on these changes by attracting foreign investment and strengthening its manufacturing sector. #Thailand #USTariffs #Manufacturing #Investment #ElectricVehicles #SmartElectronics #HomeAppliances #HighTech #GlobalTrade #RenewableEnergy #China #Taiwan #Geopolitics #EconomicGrowth #IndustrialLand #DataCenters #CloudComputing #AmataCorporation #TradeTensions #MarketTrends

𝐎𝐧𝐠𝐨𝐢𝐧𝐠 𝐄𝐔 𝐚𝐧𝐭𝐢-𝐝𝐮𝐦𝐩𝐢𝐧𝐠 𝐢𝐧𝐯𝐞𝐬𝐭𝐢𝐠𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐂𝐡𝐢𝐧𝐞𝐬𝐞 𝐡𝐚𝐫𝐝𝐰𝐨𝐨𝐝 𝐩𝐥𝐲𝐰𝐨𝐨𝐝 The European Commission launched an antidumping investigation into hardwood plywood imported into the EU from China. The investigation was initiated at the request of the nine European plywood producers. It is claimed that China’s exports of hardwood plywood are unfairly priced and use of Russian timber banned by the EU and this trade threatens the financial viability of many European companies and jobs. The product under investigation is currently classified under the HS codes ex 4412 31, ex 4412 33 and ex 4412 34 (CN and TARIC codes 4412 31 10 80, 4412 31 90 00, 4412 33 10 12, 4412 33 10 22, 4412 33 10 82, 4412 33 20 10, 4412 33 30 10, 4412 33 90 10, and 4412 34 00 10). Several other countries, including the United States, Morocco, Turkey and South Korea have already taken action to protect their own industries from similar unfair trade practices. EU will adopt new rules for the first time to register all imports of Chinese plywood and if it decides to impose tariffs in the future, there will be a retrospective period to prevent companies from hoarding goods to evade tariffs. According to Eurostat data, the EU imported about 750,000 cubic metres of hardwood plywood from China in 2023 worth €327 million, accounting for more than half of imports and 30% of the total EU market. Source: ITTO/Fordaq.