Trump-India trade war

 As US President Donald Trump navigates heavy criticism, many would say he's taking it out on India and its Southeast Asian neighbours. Amidst tensions, a new type of trade war has emerged: the Trump-India trade war. Why is it happening? Why is it the Trump-India trade war? How does it impact us?

Starting in April 2025, Trump imposed a 26% "reciprocal tariff" on imports with trading surpluses to the US, under the "Liberation Day" initiative. Of course, India is among these 'trading surplus' countries. To justify his actions, Trump used the emergency powers under the IEEPA(International Emergency Economic Powers Act).


However, yesterday, the US court stated that Trump had overstepped his authority, ruling that only Congress has the power to make decisions on international commerce. This is why I refer to it as a Trump-India conflict; he doesn't have his own country's backing for this decision.


Despite the court's ruling, a federal appeals court temporarily reinstated the tariffs, allowing their effect while legal processes are ongoing.


India, on the other hand, is assessing the implications of the US court's ruling and is preparing for trade discussions with US officials. These talks aim to finalise an interim (provisional) agreement within the 90-day tariff suspension (the one initiated in April).


As part of the negotiations, India has proposed tariff reductions on goods to protect its agricultural sector, mainly grains and dairy products. India also requested concessions like tariff reduction on labour-intensive goods and exemptions for Indian workers on short-term US visas.


There is a certain uncertainty in the markets globally, especially in India. We are all awaiting the final verdicts before making pivotal shifts. However, our Indian equity benchmarks like Nifty 50 and BSE Sensex are gaining after the court ruling against tariffs, showing investor optimism.


This is just one more thing to add to India's plate amidst Pakistani, Chinese, Bangladeshi and Afghan issues. As responsible citizens, it is our job to remain informed on all these issues and help others make the right decisions when they fail to do so.


Let's see what lies ahead.

Comments

Post a Comment

Popular posts from this blog

  The Syrian refugee crisis; the aftermath of the war: People are celebrating, singing, dancing and shouting in Syria. Syrians all over the world express joy in going back home. But will they? And is it worth it? Since the war had begun, about 2/3s of Syria's collective population fled. 7 million were displaced internally and, the other 7 million sought refuge abroad, mainly in Germany, Iraq, Lebanon, Jordan and Türkiye. The transitional prime minister of Syria would like Syrians to come back to their country, he would like as many helping hands as he can get in rebuilding this dishevelled country.  Some say, "There is no place better than home, Syria is our homeland, we will go back, even if it means living in rubble." Others believe it is better to stay where they are despite incentives from their refugee countries. The truth is, that Syria is still war-torn, it is still fighting, both internally and externally. The civil war is still not over, despite al-Assad's re...
Read more

ChatGPT causes wildifres?

Image
I didn't even know that until I started researching for this blog post. A report by Goldman Sachs states that one ChatGPT query takes 2.9 watt-hours of electricity compared to 0.3 watt-hours a Google search takes. This is why, AI is blamed for massive carbon footprints, causing global warming. Overheating servers and greenhouse gas emissions are all causes of global warming and hence a direct cause of wildfires. Shaolei Ren, an associate professor at UC Riverside, discovered that writing one email with ChatGPT consumes 17 ounces of water. There are multiple such AI bots, so imagine the water consumption. In 2023, Microsoft reported a 29% increase in emissions and 23% higher water use due to technological advancements. Google revealed a 48% surge in emissions over five years, due to AI-powered data centres, according to  PC Magazine .  So, did it cause the LA wildfires? Probably not. But it is one of the significant reasons attributed to further climate change and global wa...
Read more

HMPV; The new pandemic?

 Human metapneumovirus (HMPV) is a hot topic in the health and medical field. Most cases are mild, but young children, adults over 65, and people with weaker immune systems are more prone to the disease.  Will it cause a pandemic? Researchers and experts say no. HMPV is not a new threat or virus; it has been around for decades, which means there is a lot of immunity against it. It's more like a seasonal flu outbreak-- preventive measures like wearing masks can help control the spread of this disease. It is also not a very severe illness ( in most cases), and it doesn't spread quickly either. All in all, it does not seem like a threat currently, and even if it becomes more contagious, it can be managed well due to experience with COVID-19.  Stay safe and stay healthy!
Read more