India - US Tariff and Relations | News + Updates

[The Sundance Kid]

chalo gee, program to varr gaya

 

[A1Kaid]

7 Indian companies sanctioned for oil trade with Russia including refineries

 

[Waz]

I did say this trend of India buying Russian oil and it's weapons and also being able to trade on the best terms with the USA would eventually run into major problems.

 

[BlackenTheSky]

From “Howdy Modi” to “Howdy Tariffs”

 

[Meengla]

I did say this trend of India buying Russian oil and it's weapons and also being able to trade on the best terms with the USA would eventually run into major problems.

India's diplomatic plight is exactly the result of India's diplomatic pride, which Indians on PDF used to long crow about: How India works with every power. But that policy was, to quote Pakistan's former former minister Mr. Khurshid Kasuri 'DeRh Hushyar' (Too Clever by Half). But let's ignore Kasuri; he is a Pakistani. Here is an Indian himself: In the memorable words of this Indian analyst Jayant Bhandari 'India does not play both sides. India plays multiple sides'.

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[Ali_Baba]

Donald Trump has announced the US will impose a 25% tariff on goods from India plus an extra “penalty” for the country buying arms and energy from Russia amid the war in Ukraine.

Washington has set a 1 August deadline for countries around the world to reach agreements on trade, including India, amid the US president’s sweeping global tariff war.


While saying that Delhi was a “friend,” Trump used his Truth Social platform to criticise India’s trade policies and said the White House would impose a 25% tariff “plus a penalty” of an unspecified amount.

He said the US had a “massive” trade deficit with India – when imported goods outstrip exports – and linked its “vast” purchases of military equipment and energy from Russia to Vladimir Putin’s war in Ukraine.

Criticising Indian tariffs applied to US imports as “far too high”, he also accused Narendra Modi’s government of applying non-monetary barriers to trade that were among the most “strenuous and obnoxious” in the world.

Trump wrote: “They have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE — ALL THINGS NOT GOOD!

“INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!”

Figures compiled by Washington show the US trade in goods with India were an estimated $129.2bn (£97bn) in 2024, making it the US’s 10th largest trading partner. The US goods trade deficit was worth $45.7bn.

Trump’s criticism of India comes as he ramps up pressure on Moscow amid growing frustration with Putin’s war in Ukraine. Trump had claimed before his inauguration in January that he would be able to end the conflict within 24 hours of taking office.

Dozens of large countries around the world remain locked in negotiations with Washington with only days to go before Trump’s deadline of 1 August to reach agreements on trade. The White House has threatened to unilaterally apply higher tariffs if deals cannot be reached.

To that, i will use an American cowboy phrase that describes my state of being on hearing this news .....

"Yee-haw !!!"

 

[Starlord]

Mitroo My Frand Mr Dolaaan Trump...

 

[Waz]

India's diplomatic plight is exactly the result of India's diplomatic pride, which Indians on PDF used to long crow about: How India works with every power. But that policy was, to quote Pakistan's former former minister Mr. Khurshid Kasuri 'DeRh Hushyar' (Too Clever by Half). But let's ignore Kasuri; he is a Pakistani. Here is an Indian himself: In the memorable words of this Indian analyst Jayant Bhandari 'India does not play both sides. India plays multiple sides'.

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For more detailed information, see our cookies page.

Accept third party cookies

Old English saying as quite apt here;

 

[Nilgiri]

I did say this trend of India buying Russian oil and it's weapons and also being able to trade on the best terms with the USA would eventually run into major problems.

The base rate is 15% (EU, Japan and likely soon for Canada, Mexico, UK).

These much closer longer term trade and security partners (pre or post WW2) define basically what the statist mercantile tax on US consumers will be that Bessent has managed to pare down the original maximalist stuff from early april.

These also all involved large capital investment + current account (mostly energy import) agreements (this is what supposedly brought the 30% rate for EU down to 15% at the last moment).

Among large developing countries:

Indonesia got 19 - 25% (with significant current account promises given Indonesia capital account intersection is relatively small in scale and intersection with West).

Details for example: https://www.chinausfocus.com/finance-economy/will-indonesia-regret-its-trade-deal-with-trump

Re-exports (i.e Chinese sticker slapping + low MVA) will be at 40%

Vietnam again got 20% with significant promises made like Indonesia, for the same reasons.

So its very unlikely any developing country is going to get any rate well below these 15 - 25% (and 40% on re-exports given 50% on China right now)....and in the end the matter for India is one of "relatively speaking with capital pricing/flows with peer competitors".

In the end the 50% (effective tariff rate upon PRC currently) differential compared to developing countries closer to "friend base rate" will dictate capital flow from PRC to those countries.

It is good that India has a 5 trillion market capitalisation to handle this, it dictates the leverage and capital acquisition from PRC mid and long term (depending how long US enforces what it does and how long it does...maintaining the 2:1 slope on the pool table).

i.e Nearly 3 decades of gross capital formation in the 20 and then 30% of GDP range since the 91 IMF bailout and reforms has given it leverage compared to a lot of developing countries.

This is also goods only (Trump really doesn't understand the larger picture past goods....to services and capital/current account flows and convertibility w.r.t bonds and investment and effects on capital markets....though I would imagine Bessent gives him a few highlights to try mitigate things to better balance like has already been done since april 3rd)..... as service trade isnt quite as mercantile zero sum "manufacturing be all end all" in the trump hot button MAGA peanut gallery approach.

India gains leverage from that service trade being outside the goods tariff approach basically....compared to otherdeveloping countries that have less to hedge there relatively speaking.

 

[Baibers_1260]

Trump is a moron and Israeli puppet and a danger to the entire world. Indians should finally let go of their anti Muslim rhetoric and forget that Israel and us are not their allies, and make effort to improve relations with China, Pakistan, Nepal, Bangladesh etc

<< forget that Israel and us are not their allies, and make effort to improve relations with China, Pakistan, Nepal, Bangladesh etc>>
Leopard's change their spots ? It's the Hindutva ideology. This hasn't changed over 1500 years.

 

[Baibers_1260]

US and Indian strategic relations have officially separated. Now we'll see the US pursue other strategies. To ignore India, they will align more with China like super powers do. The multi polar world will have TWO super powers that will share their hegemony, USA and China.
India will now remain as a "developing country". Just watch the next few years. A LOT will change. US will also closely align with Pakistan in a long term committed trade and business relationship. Pakistan needs to play smart, build its defense industry independent of American influence. Only Chinese, Turkish and local made options.

Pakistan may be going back to the US relationship from 1950-1970
It was then that our country's growth paralled South Korea,
It won't be a polarized relationship vis-a- vis China, that it is either China or the USA ( like it was either Russia or the USA).

The USA would like to see Pakistan, like Finland, during the Cold War. Until 2022 Finland was a Non-Nato country with a western style democracy and economy, but still trading extensively with the Soviet Union (later Russia) and even had its energy ( gas fuel, and power) requirements closely connected to the Soviet Union (later Russia). Finland also bought some token arms from the Soviet Union ( such as a heavily customized version of the AKMs) . Finland was a useful intermediary during the final stages of the Cold War when strategic arms limitation talks were held in Helsinki,

Pakistan, is being sought for a similar role.

 

[Pakistan Space Agency]

The ones IK was supposed to announce and bajwa told him not to.

My hunch is the offshore, Americans were involved in exploration.

What are you talking about?

Cartoon-e-Azam Imran Khan's Government spent Rs 124 billion looking for gas reserves and found water instead despite there was hardly any chance of finding gas in the first place. Easy way to make money.

PM Imran misinformed about gas reserves near Karachi coast | The Express Tribune

PPL chief says 86% chance no reserves would be found at Kekra-I well

tribune.com.pk

 

[Meengla]

Pakistan may be going back to the US relationship from 1950-1970
It was then that our country's growth paralled South Korea,
It won't be a polarized relationship vis-a- vis China, that it is either China or the USA ( like it was either Russia or the USA).

There is indeed much bad blood between America and Pakistan especially after the Pressler Amendment was so callously imposed in 1990 but one of the major reasons the new, fledgling nation of Pakistan survived, even thrived in some periods was the alliance with the Americans in Pakistan's early history.
Pakistani strategists are well aware of that past and of the potentials for the future.

 

[Distant_Observer]

Trump is a moron and Israeli puppet and a danger to the entire world.

 

[Indos]

The base rate is 15% (EU, Japan and likely soon for Canada, Mexico, UK).

These much closer longer term trade and security partners (pre or post WW2) define basically what the statist mercantile tax on US consumers will be that Bessent has managed to pare down the original maximalist stuff from early april.

These also all involved large capital investment + current account (mostly energy import) agreements (this is what supposedly brought the 30% rate for EU down to 15% at the last moment).

Among large developing countries:

Indonesia got 19 - 25% (with significant current account promises given Indonesia capital account intersection is relatively small in scale and intersection with West).

Details for example: https://www.chinausfocus.com/finance-economy/will-indonesia-regret-its-trade-deal-with-trump

Re-exports (i.e Chinese sticker slapping + low MVA) will be at 40%

Vietnam again got 20% with significant promises made like Indonesia, for the same reasons.

So its very unlikely any developing country is going to get any rate well below these 15 - 25% (and 40% on re-exports given 50% on China right now)....and in the end the matter for India is one of "relatively speaking with capital pricing/flows with peer competitors".

In the end the 50% (effective tariff rate upon PRC currently) differential compared to developing countries closer to "friend base rate" will dictate capital flow from PRC to those countries.

It is good that India has a 5 trillion market capitalisation to handle this, it dictates the leverage and capital acquisition from PRC mid and long term (depending how long US enforces what it does and how long it does...maintaining the 2:1 slope on the pool table).

i.e Nearly 3 decades of gross capital formation in the 20 and then 30% of GDP range since the 91 IMF bailout and reforms has given it leverage compared to a lot of developing countries.

This is also goods only (Trump really doesn't understand the larger picture past goods....to services and capital/current account flows and convertibility w.r.t bonds and investment and effects on capital markets....though I would imagine Bessent gives him a few highlights to try mitigate things to better balance like has already been done since april 3rd)..... as service trade isnt quite as mercantile zero sum "manufacturing be all end all" in the trump hot button MAGA peanut gallery approach.

India gains leverage from that service trade being outside the goods tariff approach basically....compared to otherdeveloping countries that have less to hedge there relatively speaking.

That is false analysis by that lady. There is no additional 10 % due to BRICS membership. Indonesia SOE wants to buy 50 planes since 2019, cancelled due to Covid.

Getting additional 40 % tarrift due to China supply chain ? Does she has enough critical thinking ? How on earth there is a deal like that as Indonesia prevously get 32 % tarriff ? China supply chain is already calculated as every country export including India get exposed with China supply chain (components etc)

Indonesia gets 19 % tarrif. US goods already get tarrift at 0-5% before the deal due to US uncompetitiveness. We dont produce wheat and Soybean as well. 5 billion USD agriculrural import is basically our repeat order from that country.

She doesnt know things but keep writing. More like wishlist writing by her who is likely Malaysian or Singaporean