India - US Tariff and Relations | News + Updates

PakFactor said:
Yes, the full amount—$48 billion — will be due after 21 days, as pharma isn't included. The total tariff hit will be $18 billion. If nothing is agreed upon, it's sitting on the lower end, with 25% of the $8 billion of goods.

I feel India might follow China's example by downsizing its exposure to the U.S. and increasing trade with the EU. These aren't goods that can't be redirected elsewhere. Most economists estimate a 0.2-0.4 percentage point impact on Indian GDP; the $90 billion is just 2 to 3 percentage points of its total GDP. Thus, it's not going to create major macroeconomic tremors.
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If Delhi stands firm and doesn’t bow down to Trump then that has a huge selling point amongst the domestic audience.
Any move by Modi to backtrack would be captured by Rahul and co. and turned it into a big political battle.

The next round of talks with US towards the month end might be decisive in this regard.

Already an indication of Delhi taking a stand.

 
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After Japan confirmed $550 billion in investments, Trump abruptly reversed his promise, accusing Japan of misunderstanding his terms. Instead of a 15% tariff, he added another 15% to the base tariff. This means the tariff on autos, which is Japan's most pressing concern, will reach 42.5%.


www.japantimes.co.jp

The United States imposes 15% 'reciprocal' tariff on most Japanese goods

Japan and the U.S. still disagree on how the rate will be calculated.
www.japantimes.co.jp www.japantimes.co.jp

mainichi.jp

US says Japan has no tariff stacking relief for 15% rate - The Mainichi

WASHINGTON (Kyodo) -- U.S. President Donald Trump's country-specific tariffs took effect on Thursday, with a White House official saying that Japanese
mainichi.jp mainichi.jp
 
Indos said:
It will be offset by pledge of many countries to avoid Trump tarrif

Basically Boeing will be just fine
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It's not about the amount but message. Even I know it will not much impact to boeing.

But as Trump is a business, he valued such things.
 
PakFactor said:
As I speculates several days back, its economic sectoral access Trump wants in India's agricultural sector. Then it's energy, in which U.S. forced India to purchase from Russia initially purchase during Biden Adminstration. [This is no different than Canada protecting its crown jewel, its agriculture sector.]

With neither Brazil nor other major economies striking a deal, he's trying to dangle a threat in front of India, thinking it might fold.

Today, other tariffs across the world are going into effect.

@kmc_chacko @koolzberg @Nilgiri @Meengla @Musings @Raj-Hindustani@vasanthm @hembo @Terracotta Warrior
@SoulSpokesman

India’s Modi says he will “pay a heavy price” for not bowing to Trump trade threats​

From CNN’s Aishwarya S Iyer and Lex Harvey
US President Donald Trump and Indian Prime Minister Narendra Modi attend a joint press conference at the White House in Washington, DC, on February 13.

US President Donald Trump and Indian Prime Minister Narendra Modi attend a joint press conference at the White House in Washington, DC, on February 13.

Nathan Howard/Reuters

Indian Prime Minister Narendra Modi conceded Thursday that he may “pay a heavy price” as he defended his decision not to bow to US trade threats and face steep tariffs as a result.

“For us, the interest of our farmers is our top priority. India will never compromise on the interests of farmers, fishermen and dairy farmers. I know personally, I will have to pay a heavy price for it, but I am ready for it,” he said.

Trump has been critical of what he sees as India’s protectionist trade policies as well as its continued purchases of Russian oil.

Goods from India are subject to a 25% tariff and could also be subject to an additional 25% tariffstacked on top of that because of an executive order Trump signed Wednesday that seeks to penalize India for purchasing oil from Russia. That second tariff is slated to take effect on August 27.

Modi has been reluctant to cave to US demands to open up its economy to international competitors and halt Russian oil purchases.

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I always vouched India to have US type of consumption based economy over China's export oriented, that's because US knows that its capacity to consume irrespective of cost will always put others in their mercy.

We should always find ways to increase consumer base to that extent, that no other country should bully us like US doing now.

We should also find ways to self sufficient, a hard lesson now GoI learned now.

PakFactor said:
might follow China's example by downsizing its exposure to the U.S. and increa
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rather than downsizing I will recommend diversify the area of exposure i.e., keep trade with US steady but find new countries and areas to export goods.
 
Raj-Hindustani said:
It's not about the amount but message. Even I know it will not much impact to boeing.

But as Trump is a business, he valued such things.
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Boeing have a LONG line of people waiting for it's airliners, they can now jump the line and will pay for the privilage.

Now once you play this game with Trump, imagine what the US will do to your precious IT services and who will be hurt harder.....
 
kmc_chacko said:
I always vouched India to have US type of consumption based economy over China's export oriented, that's because US knows that its capacity to consume irrespective of cost will always put others in their mercy.

We should always find ways to increase consumer base to that extent, that no other country should bully us like US doing now.

We should also find ways to self sufficient, a hard lesson now GoI learned now.



rather than downsizing I will recommend diversify the area of exposure i.e., keep trade with US steady but find new countries and areas to export goods.
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Switching to a consumption based economy is a psychological thing, it can change slowly through next generations of people if the mantra to buy with cheap credit and government subsidies being available.

In China people are use to a saving culture their government is trying to switch to consumption.
 
Vkdindian1 said:
Nope. It was claimed on social media and then a tread was opened right here on this forum.
There were many people who had endorsed the same sentiment.View attachment 139473
The master economist etc is very commonly made comment about him all over as he does control all these aspects in Pakistan.
When he had that lunch with DT, your minister and the ambassador were sitting outside. That says it all about who is controling what.
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Like I said bottom line is Pakistan US relations have improved recently, Indo US relations have declined sharply. That’s good for Pakistan & bad for India. Maybe short lived, who knows. Rest is all butt hurt.
 
Yasser76 said:
Boeing have a LONG line of people waiting for it's airliners, they can now jump the line and will pay for the privilage.

Now once you play this game with Trump, imagine what the US will do to your precious IT services and who will be hurt harder.....
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Bro, every amount matters — even 1 or 2 billion (loan). For example, for that amount alone, Pakistan being a country sometimes has to do things it doesn’t want to do.

For a company like Boeing, that amount may be relatively small, but still, no business wants to lose money — it goes against basic business principles
 
Raj-Hindustani said:
Bro, every amount matters — even 1 or 2 billion (loan). For example, for that amount alone, Pakistan being a country sometimes has to do things it doesn’t want to do.

For a company like Boeing, that amount may be relatively small, but still, no business wants to lose money — it goes against basic business principles
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Sure, I now how economics work, unsure you do.

You start messing with Boring orders it is small pain, Trump has left India IT alone, now assume he hears about the Boring cancellation

Who will be hurt more?
 
The Iran episode shows that Trump sometimes prefers to mask his true intentions. If his tariff policies are fully enacted, they could funnel roughly 300 billion into U.S. coffers. Yet steep tariffs will also ignite high inflation within a few months. Should Washington leverage those same tariffs to wage financial wars against selected nations—and siphon off enough spoils to offset domestic price spikes—American voters may hail Trump’s tariffs as a triumph, branding the Democrats’ current agenda an outright failure. Is the present all-out squeeze on India part of the groundwork for such a financial war?
 
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chinasun said:
The events in Iran show that Trump sometimes likes to conceal his true intentions. Once his tariff policies are fully implemented, they could bring the United States about 300 billion dollars in revenue. However, high tariffs will also trigger high inflation within a few months. If, through measures such as steep tariffs, Washington can financially harvest several countries and use part of those proceeds to offset domestic inflation, American voters may regard Trump’s tariff strategy as a success—rendering the Democrats’ current policies an outright failure. Is the current all-out pressure on India a deliberate prelude to such a financial harvest?
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With 25 % and competitor like Indonesia and Vietnam with 19 % tarrift plus both nations can export to West Coas US much cheaper route, then pretty meaningless to say adding more tarrif to India will provide more money to US. Importer just switch to other nation products with cheaper tarrift

And with 50 % tarrift, it is already an embargo
 
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