India - US Tariff and Relations | News + Updates
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Yasser76
Elite Member
US warns of additional tariffs on India if Trump-Putin peace talks fail
US Treasury Secretary Scott Bessent has warned that Washington could increase secondary tariffs on India.
He said the decision would depend on the outcome of President Donald Trump's meeting with Russian counterpart Vladimir Putin in Alaska on Friday.
"We've put secondary tariffs on Indians for buying Russian oil. And I could see, If things don't go well, then sanctions or secondary tariffs could go up," Bessent said in an interview to Bloomberg TV , externalon Wednesday.
Earlier this month, Trump imposed a 25% penalty on India in addition to 25% tariffs for buying oil and weapons from Russia.
The US has been trying to mediate a ceasefire between Russia and Ukraine, and on Wednesday, Trump warned of "severe consequences" if Moscow did not agree to a peace deal.
Trump and Putin are set to meet in Anchorage on Friday to discuss how to end the war in Ukraine.
"President Trump is meeting with President Putin, and the Europeans are in the wings carping about how he should do it, what he should do. The Europeans need to join us in these sanctions. The Europeans need to be willing to put on these secondary sanctions," Bessent said.
Delhi's increased imports of cheap Russian crude since the Ukraine war have strained India-US relations and disrupted ongoing trade talks with Washington.
Russian oil made up 35% to 40% of India's oil imports in 2024 - up from 3% in 2021.
Delhi has defended its purchases of Russian oil, arguing that as a major energy importer, it must buy the cheapest available crude to protect millions of poor Indians from rising costs.
Bessent's comments come after he called India a "bit recalcitrant" on trade negotiations in an interview with Fox Business, external on Tuesday.
Trump says his tariffs are part of his administration's plan to boost the US' economy and make global trade fairer.
He has repeatedly called India a tariff abuser and is keen to trim a $45bn (£33bn) trade deficit with Asia's third largest economy.
Trade negotiations between Delhi and Washington have been under way for several months, and are set to renew with US negotiators expected to arrive in India on 25 August.
But experts say India's refusal to reduce duties on agriculture and dairy products has been a major thorn in the negotiations.
Trump's new 50% tariff rate on India is set to come into effect on 27 August, which some experts have said is akin to an embargo on trade between the two countries.
It makes India the most heavily taxed US trading partner in Asia and is expected to severely hamper its exports focused industries like textiles and jewellery, and could drag India's growth down by as much as half a percent.
Alaska: US warns of additional tariffs on India if Trump-Putin peace talks fail
US Treasury chief says Washington could increase secondary tariffs on India if talks don't go well in Alaska.
www.bbc.co.uk
Raj-Hindustani
Elite Member
Is the trying to blackmail Russia?US warns of additional tariffs on India if Trump-Putin peace talks fail
US Treasury Secretary Scott Bessent has warned that Washington could increase secondary tariffs on India.
He said the decision would depend on the outcome of President Donald Trump's meeting with Russian counterpart Vladimir Putin in Alaska on Friday.
"We've put secondary tariffs on Indians for buying Russian oil. And I could see, If things don't go well, then sanctions or secondary tariffs could go up," Bessent said in an interview to Bloomberg TV , externalon Wednesday.
Earlier this month, Trump imposed a 25% penalty on India in addition to 25% tariffs for buying oil and weapons from Russia.
The US has been trying to mediate a ceasefire between Russia and Ukraine, and on Wednesday, Trump warned of "severe consequences" if Moscow did not agree to a peace deal.
Trump and Putin are set to meet in Anchorage on Friday to discuss how to end the war in Ukraine.
"President Trump is meeting with President Putin, and the Europeans are in the wings carping about how he should do it, what he should do. The Europeans need to join us in these sanctions. The Europeans need to be willing to put on these secondary sanctions," Bessent said.
Delhi's increased imports of cheap Russian crude since the Ukraine war have strained India-US relations and disrupted ongoing trade talks with Washington.
Russian oil made up 35% to 40% of India's oil imports in 2024 - up from 3% in 2021.
Delhi has defended its purchases of Russian oil, arguing that as a major energy importer, it must buy the cheapest available crude to protect millions of poor Indians from rising costs.
Bessent's comments come after he called India a "bit recalcitrant" on trade negotiations in an interview with Fox Business, external on Tuesday.
Trump says his tariffs are part of his administration's plan to boost the US' economy and make global trade fairer.
He has repeatedly called India a tariff abuser and is keen to trim a $45bn (£33bn) trade deficit with Asia's third largest economy.
Trade negotiations between Delhi and Washington have been under way for several months, and are set to renew with US negotiators expected to arrive in India on 25 August.
But experts say India's refusal to reduce duties on agriculture and dairy products has been a major thorn in the negotiations.
Trump's new 50% tariff rate on India is set to come into effect on 27 August, which some experts have said is akin to an embargo on trade between the two countries.
It makes India the most heavily taxed US trading partner in Asia and is expected to severely hamper its exports focused industries like textiles and jewellery, and could drag India's growth down by as much as half a percent.
Alaska: US warns of additional tariffs on India if Trump-Putin peace talks fail
US Treasury chief says Washington could increase secondary tariffs on India if talks don't go well in Alaska.
And why would Russia care about it?
hydrabadi_arab
Trusted Member
looks like India will be punching bag of super powers going forward
SoulSpokesman
Trusted Member
@hydrabadi_arab
Congratulations, Hydra bro!
Meanwhile....
theprint.in
S&P on Thursday upgraded India’s sovereign credit rating to ‘BBB’ with a stable outlook after a gap of nearly 19 years, citing robust economic growth, political commitment for fiscal consolidation and ‘conducive’ monetary policy to check inflation.
“India remains among the best performing economies in the world…The quality of government spending has improved in the past five to six years,” S&P Global Ratings said.
The impact of US tariffs on the Indian economy will be “manageable”, S&P said, adding that a 50 per cent tariff on US exports (if imposed) will not pose a “material drag” on growth.
“India is relatively less reliant on trade and about 60% of its economic growth stems from domestic consumption,” it said.
The rating upgrade by a US-based agency comes days after American President Donald Trump dubbed India as a “dead economy”. Trump has imposed the highest 50 per cent tariff on Indian goods with effect from August 27.
Also, the rating upgrade will help lower borrowing cost of Indian companies in international markets.
S&P in January 2007 placed India on the lowest investment grade rating of ‘BBB-‘.
This is the first upgrade by a global rating agency which has rated India a notch above the lowest investment grade.
‘BBB’ is an investment grade rating and denotes improved ability of the country to discharge its debt obligation comfortably.
In May last year, S&P changed India’s credit rating outlook to ‘positive’, from ‘stable’, and hinted that a rating upgrade could be coming in the next 24 months.
“The upgrade of India reflects its buoyant economic growth, against the backdrop of an enhanced monetary policy environment that anchors inflationary expectations. Together with the government’s commitment to fiscal consolidation and efforts to improve spending quality, we believe these factors have coalesced to benefit credit metrics,” S&P said while upgrading India’s rating.
S&P Global Ratings raised its long-term unsolicited sovereign credit ratings on India to ‘BBB’ from ‘BBB-‘, and its short-term ratings to ‘A-2’ from ‘A-3’.
The stable outlook reflects S&P’s view that continued policy stability and high infrastructure investment will support India’s long-term growth prospects. That along with cautious fiscal and monetary policy that moderates the government’s elevated debt and interest burden will underpin the rating over the next 24 months.
India’s weak fiscal settings had always been the most vulnerable part of its sovereign ratings profile.
“With economic recovery now well on track, the government can depict a more concrete (albeit gradual) path to fiscal consolidation,” S&P said.
S&P projects general government deficit of 7.3 per cent of GDP in fiscal 2026 to decline to 6.6 per cent by fiscal 2029.
“India’s recovery from its pandemic nadir places it among the best-performing emerging market economies in the world. Economic expansion is normalising toward a more sustainable level with good momentum. We anticipate solid consumer and public investment dynamics to propel real GDP growth to 6.5 per cent in fiscal 2026 and to average 6.8 per cent over the next three years,” S&P said.
Regards
Congratulations, Hydra bro!
Meanwhile....
S&P upgrades India's rating after 19 years to 'BBB' on robust economic growth, better finances
New Delhi, Aug 14 (PTI) S&P on Thursday upgraded India’s sovereign credit rating to ‘BBB’ with a stable outlook after a gap of nearly 19 years, citing robust economic growth, political commitment for fiscal consolidation and ‘conducive’ monetary policy to check inflation. “India remains among...
theprint.in
S&P on Thursday upgraded India’s sovereign credit rating to ‘BBB’ with a stable outlook after a gap of nearly 19 years, citing robust economic growth, political commitment for fiscal consolidation and ‘conducive’ monetary policy to check inflation.
“India remains among the best performing economies in the world…The quality of government spending has improved in the past five to six years,” S&P Global Ratings said.
The impact of US tariffs on the Indian economy will be “manageable”, S&P said, adding that a 50 per cent tariff on US exports (if imposed) will not pose a “material drag” on growth.
“India is relatively less reliant on trade and about 60% of its economic growth stems from domestic consumption,” it said.
The rating upgrade by a US-based agency comes days after American President Donald Trump dubbed India as a “dead economy”. Trump has imposed the highest 50 per cent tariff on Indian goods with effect from August 27.
Also, the rating upgrade will help lower borrowing cost of Indian companies in international markets.
S&P in January 2007 placed India on the lowest investment grade rating of ‘BBB-‘.
This is the first upgrade by a global rating agency which has rated India a notch above the lowest investment grade.
‘BBB’ is an investment grade rating and denotes improved ability of the country to discharge its debt obligation comfortably.
In May last year, S&P changed India’s credit rating outlook to ‘positive’, from ‘stable’, and hinted that a rating upgrade could be coming in the next 24 months.
“The upgrade of India reflects its buoyant economic growth, against the backdrop of an enhanced monetary policy environment that anchors inflationary expectations. Together with the government’s commitment to fiscal consolidation and efforts to improve spending quality, we believe these factors have coalesced to benefit credit metrics,” S&P said while upgrading India’s rating.
S&P Global Ratings raised its long-term unsolicited sovereign credit ratings on India to ‘BBB’ from ‘BBB-‘, and its short-term ratings to ‘A-2’ from ‘A-3’.
The stable outlook reflects S&P’s view that continued policy stability and high infrastructure investment will support India’s long-term growth prospects. That along with cautious fiscal and monetary policy that moderates the government’s elevated debt and interest burden will underpin the rating over the next 24 months.
India’s weak fiscal settings had always been the most vulnerable part of its sovereign ratings profile.
“With economic recovery now well on track, the government can depict a more concrete (albeit gradual) path to fiscal consolidation,” S&P said.
S&P projects general government deficit of 7.3 per cent of GDP in fiscal 2026 to decline to 6.6 per cent by fiscal 2029.
“India’s recovery from its pandemic nadir places it among the best-performing emerging market economies in the world. Economic expansion is normalising toward a more sustainable level with good momentum. We anticipate solid consumer and public investment dynamics to propel real GDP growth to 6.5 per cent in fiscal 2026 and to average 6.8 per cent over the next three years,” S&P said.
Regards
hydrabadi_arab
Trusted Member
Is India willing to crash its inflated GDP? Russia and China will not buy your goods and services.
Pakistan have gone through this in 2010’s.
SoulSpokesman
Trusted Member
@hydrabadi_arab
Hydra bro,
Pakistan have gone through this in 2010’s.
What did Pakistan go through in the 2010s?
Regards
Hydra bro,
Pakistan have gone through this in 2010’s.
What did Pakistan go through in the 2010s?
Regards
hydrabadi_arab
Trusted Member
USA blackmail, sanctions, asked to do more against Taliban etc USA trying to please Indian demands to isolate Pakistan was also a factor.
Now daddy is telling Europeans to sanction India.
SoulSpokesman
Trusted Member
@hydrabadi_arab
Hydra bro,
Now daddy is telling Europeans to sanction India.
Your daddy wants Euros to sanction/isolate India, China, Russia, Iran. Who they want them to trade with?
Regards
Hydra bro,
Now daddy is telling Europeans to sanction India.
Your daddy wants Euros to sanction/isolate India, China, Russia, Iran. Who they want them to trade with?
Regards
hydrabadi_arab
Trusted Member
Daddy final warning to Europe. My guess is if Russia-USA talks fail then Europe will follow with sanctions on India.
India is now punching bag of superpowers.
Yasser76
Elite Member
Wow, US now going to pressure Europe to sanction India too.
India better hope Trump and Putin make a deal soon.
If US imposes more sanctions and tariffs on India then I imagine they may also upse weapons sales/spare parts as a tool too.
Pakistani Dragon
Elite Member
Indian bragging has finally come to a stop.
You should've been humble as the bigger neighbour in the region rather be arrogant.
You should've been humble as the bigger neighbour in the region rather be arrogant.
r3alist
Elite Member
This is an excellently worded tweet.
In other words it's somehow made itself into the convenient adjustment variable that serves to absorb systemic tensions without systemic risk. When Trump needs to demonstrate sanctions toughness without risking Chinese retaliation, he threatens India precisely because it's large enough to matter marginally but not powerful enough to retaliate meaningfully.
Take a minute to understand it
In other words it's somehow made itself into the convenient adjustment variable that serves to absorb systemic tensions without systemic risk. When Trump needs to demonstrate sanctions toughness without risking Chinese retaliation, he threatens India precisely because it's large enough to matter marginally but not powerful enough to retaliate meaningfully.
Take a minute to understand it
r3alist
Elite Member
More developed and richer Nations kind of rushed in early and effectively paid their entrance fee..... Japan, South Korea, the gulf Nations, EU, Vietnam....... They all promised hundreds of billions at the US.
I'm not aware of what the most generous aspect India is offering
r3alist
Elite Member
This actually makes sense, from an American point of view.
Trump considers Ukraine a European war, so Europe should be making the moves to bring about an end to it
The counter argument is this will piss off India too much as an important partner, well why didn't they do it sooner and conveniently ignore it for so long? I suppose India is in its rights to say you suddenly work up now?
But Mr Bertrand is ultimately right, the world is more unprincipled than ever and might is right more than ever.
India avoiding alignment, is the most ambitious geopolitical aim in the world right now. As you need the strength to rebuff but still cooperate with all major world powers
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