Trump raises India tariffs to 50% over Russian oil purchases [Update@post#255]

[JaDed]

The first casualty is the massive dip in FX in last 1 year to keep the Rupee stable(Still at high levels), India needs to get its act together, force the reforms and get the FDI.

 

[emranabbas]

It's no secret PM Modi and President Trump are good friends.

PM Modi kept in touch with DT when Biden was in the office, this was acknowledged by Trump.

This all looks staged to me, just like the supposed spat between Elon and Trump.

I wonder if all this tariff drama is just for show,

DT: I am going to strengthen your image,

PM Modi: I am listening,

DT: I am going to increase the Tariffs on India for a period of time and announce it to the whole world, you can reject it and look strong, strengthening your political image even further than what are you currently at, in front of your audience for the time period I keep the Tariffs high. We will come to an agreement and compromises on a few options while this drama plays out and then I will normalise the Tariffs..

PM: Smiles, OK....

Meanwhile Pakistan:

hahah Modi sarannnndaaarrr, we won, Kashmir is ourrsss Saaaaarrrr

So, are you suggesting this is all staged, or is this meant to be satire post?

 

[Romali_rotti]

So, are you suggesting this is all staged,

I am saying it is a possibility...

 

[cricketjoshila]

On the contrary, I'm pretty pragmatic about this. In the current environment, neither USA nor Russia is a reliable partner. For better or worse, we're back to the pre-first world war era of purely transactional relationships, shifting alliances and protective nationalism.

We don't want Trump as an ally - he wouldn't be stable anyway. We need the US as a trading partner. If that means we need to buy more expensive oil for a month or two till Trump moves on to his next pet peeve, I think we should be perfectly happy to do it. Putin's pragmatic enough to know that we'll buy plenty of stuff from him again when the heat's off and the tantrum's done.

We're not strong enough yet to stand on principle on such matters especially when the principle itself is flimsy.

How much that expensive oil hit inflation

Will russia supply emergency arms next time?

Trump is worryh nothing. No need to antagonize russia for this clown

Intra Brics trade is the future

 

[cricketjoshila]

So, are you suggesting this is all staged, or is this meant to be satire post?

Modi is doing what any indianpm would have done indira Gandhi didn’t bow to nixon modi wont bow to fund dolund will be tesring his hai out in. Few months ince brics decice to trade in local currency and not usd

 

[cricketjoshila]

The first casualty is the massive dip in FX in last 1 year to keep the Rupee stable(Still at high levels), India needs to get its act together, force the reforms and get the FDI.

Fx stfx stand T 6.88 bn usd

 

[DeadlyVenom]

I am saying it is a possibility...

Its also a possibility the whole world is like the movie the matrix and @Devadwal is Keanu Reeves.

So many things can be possible if all we do is use our imagination.

 

[RexRex]

It's no secret PM Modi and President Trump are good friends.

This all looks staged to me, just like the supposed spat between Elon and Trump.

Meanwhile Pakistan:

hahah Modi sarannnndaaarrr, we won, Kashmir is ourrsss Saaaaarrrr

Atleast the last bit is predictably true.

 

[Bhaijaan]

From what we know so far, IT services, pharmaceuticals, energy products (including refined Russian oil—lol), iPhones, and other electronics are exempt from the 50% tariff. This means roughly 55% of India’s total exports to the US are unaffected by these tariffs.

In reality, the actual economic impact is far smaller than the headlines suggest. The headline is all Trump really wants and many are happy to let him have it as long as it avoids deeper measures that could cause genuine harm.

As for the much hyped billions in investment pledges from Gulf nations and corporations like Apple or Nvidia, these are unenforceable. American economists have already pointed this out. Trump knows it too but when his term ends, he’ll simply claim that if he was still in the Oval Office, he would’ve enforced them.

The BRICS nations remain the only bloc refusing to hand Trump easy headlines which is a clear sign of a shifting world order. It wouldn't hurt them if they'd massage Trump's ego but they are in no mood of doing that and being remembered for bowing down in this moment.

Tim Cook presenting Trump with a 24-carat gold plated glass was pure comedy circus and a disgrace to the legacy and sanctity of the White House.

 

[Red-Indian]

How much that expensive oil hit inflation

Will russia supply emergency arms next time?

Trump is worryh nothing. No need to antagonize russia for this clown

Intra Brics trade is the future

Cheap oil from Russia or not, India has one of the highest prices for Petrol at the pump among all developing countries. They've also been remarkably stable for years.

I'm not sure who's getting the benefit of cheap crude purchases from Russia but my petrol bill certainly hasn't seen any. For example, if you look at the US - average price at the pump has fallen from $3.8 in mid 2022 to $3.26 today...a drop of 15%. In India, it's gone up from Rs.95 to Rs.105 (your particular state's mileage may vary)...an increase of 7%.

Part of that is of course, the Indian government increasing taxation as crude prices have come down but part also I think is that discounts on crude haven't been as much as we thought. Either way, I don't think shifting crude purchases will have much of an impact on inflation. OPEC has increased production in anticipation and non-OPEC oil producing countries like the US are also ramping up.

As I said neither Trump (a clown) nor Putin (a despot) is a reliable partner. We owe neither anything much and need to act in our own National interest. If that means temporary appeasing the clown at the expense of the despot, so be it.

 

[JaDed]

Fx stfx stand T 6.88 bn usd

yes as i said its high still but RBI had to do a lot to keep the Rupee stable

 

[BouncerGuy]

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 on 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."

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 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.

BBC

 

[emranabbas]

Cheap oil from Russia or not, India has one of the highest prices for Petrol at the pump among all developing countries. They've also been remarkably stable for years.

I'm not sure who's getting the benefit of cheap crude purchases from Russia but my petrol bill certainly hasn't seen any. For example, if you look at the US - average price at the pump has fallen from $3.8 in mid 2022 to $3.26 today...a drop of 15%. In India, it's gone up from Rs.95 to Rs.105 (your particular state's mileage may vary)...an increase of 7%.

Part of that is of course, the Indian government increasing taxation as crude prices have come down but part also I think is that discounts on crude haven't been as much as we thought. Either way, I don't think shifting crude purchases will have much of an impact on inflation. OPEC has increased production in anticipation and non-OPEC oil producing countries like the US are also ramping up.

As I said neither Trump (a clown) nor Putin (a despot) is a reliable partner. We owe neither anything much and need to act in our own National interest. If that means temporary appeasing the clown at the expense of the despot, so be it.

In Pakistan, petrol costs about $0.88, while in India it’s around $1.10 yet in Pakistan, people are ready to tear each other apart over it.