Following the latest trade war volley between the world’s largest economy, the US government imposed restrictions on imports of a crucial Nvidia device to China, leading to a decline in the European and Asian stock markets on Wednesday ( April 16 ). Later on Tuesday, Nvidia informed regulators that aContinue Reading
Worldwide, Apple sells more than 220 million smartphones annually, according to Counterpoint Research, who estimates that India accounts for one-quarter of all goods to the US and China for the rest.
Trump has consistently increased US tariffs on China, increasing from 54 % to 125 percent on Wednesday.
According to estimates based on estimates by Rosenblatt Securities, the US$ 1, 599 value of the premium phone 16 Pro Max may have increased to US$ 2, 300 at the 54 % tax rate.
According to the source, Apple increased air shipments in India in order to meet its goal of a 20 % increase in the average production at its iPhone factories, which was achieved by adding more workers and temporarily extending Sunday operations at the biggest Foxconn India factory.
Two additional direct sources confirmed that the Foxconn plant in Chennai currently operates on Sundays, which are usually on vacation. Last year, the factory produced 20 million iPhones, including the newest versions of the phone 15 and 16.
As Apple expands beyond China to include production in other markets, it has positioned India for a crucial position. There are three companies overall, with two more be built, and Foxconn and Tata, its two major suppliers, are the other two.
According to a top Indian national, Apple spent about eight weeks planning and setting up the expedited traditions certification process in Chennai, and Prime Minister Narendra Modi’s authorities asked officials to back Apple.
According to economically accessible customs data, Foxconn supplies from India to the United States increased in value to US$ 770 million in January and US$ 643 million in February, compared to the collection of US$ 110 million to US$ 331 million in the previous four months.
Chicago, Los Angeles, New York, and San Francisco were the offload locations for more than 85 % of Foxconn’s January and February heat supplies.
Foxconn did not respond to Reuters ‘ inquiries.
Everyone was anticipating issues, but the so-called mutual tariffs, which are a very strange measure, surprised us, according to an investment adviser with extensive experience in Vietnam. He declined to be identified so that he could speak more easily. Vietnam may face new duties as a goal, according to severalContinue Reading
WASHINGTON: The United States State Department announced a slew of sanctions on Monday ( Dec 9 ) to mark International Anti-Corruption Day and the eve of Human Rights Day, targeting individuals from multiple countries, including the former CEO of SriLankan Airlines , over Airbus purchases. Even targeted were North Macedonia’s formerContinue Reading
Property ROUT AND FALLOUT Adani Group’s debt and equity have been jolted by the US accusation. Following the news, Adani Group ties dropped for a minute period. The companies ‘ stock prices stabilized on Friday, one day after almost US$ 27 billion was taken from those shares ‘ combined marketContinue Reading
Due to concerns about national security, Germany announced on Thursday ( Jul 11 ) that it will gradually phase out Huawei and ZTE components in its 5G networks in the future. Some are worried that Berlin’s latest move to reduce its economic reliance on Beijing is making sense, and itContinue Reading
After the sanctioned Chinese tech firm released a new AI-enabled computer with an Intel AI computer chip, Republican China hardliner Marco Rubio is asking the Biden administration to halt all income to Huawei. Democratic lawmakers criticized the transfer of Huawei’s first AI-enabled notebook, the MateBook X Pro, which was poweredContinue Reading
After sanctioned Chinese telecoms equipment giant Huawei unveiled a laptop this week powered by an Intel artificial intelligence chip, Republican US lawmakers on Friday ( Apr 12 ) criticised the Biden administration. The United States placed Huawei on a business limitations record in 2019 for violating Iran sanctions, portion ofContinue Reading
Chinese EV makers have been counting on Southeast Asia, the Middle East and Europe as their largest exporting markets. BYD, the world’s largest EV maker by sales, has repeatedly said it has no plan to sell its cars in the US market, but on Wednesday said it was looking forContinue Reading
Economy minister Yoshitaka Shindo stressed the need to achieve solid wage growth to underpin consumption, which he described as “lacking momentum” due to rising prices.
“Our understanding is that the BOJ looks comprehensively at various data, including consumption, and risks to the economy in guiding monetary policy,” he told a news conference after the data’s release, when asked about the impact on BOJ policy.
Japan’s nominal GDP stood at US$4.21 trillion in 2023, falling below US$4.46 trillion for Germany to rank as the world’s fourth-largest economy, the data showed.
“The overtaking … in size in dollar terms owes a lot to the recent collapse in the yen. Japan’s real GDP has actually outperformed Germany’s since 2019,” said Fitch Ratings economist Brian Coulton.
Germany’s heavily export-dependant manufacturers have been hit particularly hard by soaring energy prices in the wake of Russia’s invasion of Ukraine.
Europe’s biggest economy has also been hampered by the European Central Bank raising interest rates in the eurozone as well as uncertainty over its budget and chronic shortages of skilled labour.
Japan is also heavily reliant on exports, in particular cars, although the weak yen – making exports cheaper – has helped big firms like Toyota offset weakness in key markets such as China.
But it is suffering more than Germany in terms of worker shortages as its population falls and birth rates remain low, and economists expect the gap between the two economies to widen.
“Like Japan, Germany’s population has been declining, but it has nevertheless achieved steady economic growth,” said Toshihiro Nagahama, economist at Dai-ichi Life Research Institute.
“This is because, especially since the 2000s, the government authorities in Germany have been actively implementing policies to create an environment that makes it easier for companies to operate in the country,” he said.
During its boom years of the 1970s and ’80s, some projected that Japan would become the world’s biggest economy.
But the catastrophic bursting of Japan’s asset bubble in the early 1990s led to several “lost decades” of economic stagnation and deflation.
When in 2010 Japan was overtaken as number two by Asian rival China – whose economy is now around four times larger – it prompted major soul-searching.
While largely a product of the yen’s slide, falling behind Germany will still be a blow to Japan’s self-esteem and add to the pressure on unpopular Prime Minister Fumio Kishida.
More humiliation is to come with booming India projected to overtake Japan in 2026 and Germany in 2027 in terms of output – although not in GDP per capita – according to the International Monetary Fund.
Germany and Japan “are shrinking in terms of contribution to global growth in favour of faster-growing ones … because their productivity is already very high and it is very hard to increase it”, said Natixis economist Alicia Garcia-Herrero.
“Of course, both Germany and Japan could take measures to mitigate this. The most obvious one is allowing for more immigration or increasing the fertility rate,” she told AFP.
Japan “has not made progress in raising its own growth potential”, Japanese financial daily the Nikkei said in a recent editorial.
“This situation should be taken as a wake-up call to accelerate neglected economic reforms.”