US bill proposes 500% tariff on India, China over Russia business ties
If enacted, the bill could severely impact India and China, the largest buyers of discounted Russian crude. For India, the move also risks tariffs on exports like pharmaceuticals, textiles, and IT services.India is a major buyer of Russian oil, and imported EUR 49 billion worth of crude oil in the third year of the Ukraine invasion. Traditionally, India sourced its oil from the Middle East, but began importing a large volume of oil from Russia soon after the invasion of Ukraine in February 2022.The development also comes on the heels of the much-expected India-US bilateral trade agreement. US Treasury Secretary Scott Bessent stated on Tuesday that the trade deal is "very close", even as an Indian delegation continued discussions with US officials in Washington after trade talks hit a deadlock over key agricultural demands, sources told India Today.advertisementThe proposed bill, co-sponsored by Graham and Democratic Senator Richard Blumenthal, reportedly has 84 co-sponsors and aims to pressure nations into halting Russian oil purchases, weakening "Moscow's war economy" and pushing it toward peace negotiations in Ukraine.Graham told ABC News that Trump gave the green light during a golf game. "For the first time yesterday, the President told me I was playing golf with him. He says, 'It's time to move your bill.'"Originally proposed in March, the legislation faced delays after the White House signalled opposition.The Wall Street Journal reported that the Trump administration had 'quietly pressured' the Senate to soften the bill by changing mandatory language ("shall") to discretionary ("may").Graham later reportedly proposed a carve-out for countries supporting Ukraine, likely to ease concerns among the US's European allies. "We are going to give President Trump a tool in the toolbox," Graham said.If this bill becomes law, it may alter US's trade relationships with both China and India. Given that the US is India's primary export market, the policy could also trigger substantial economic repercussions and diplomatic tensions.- EndsTune InMust Watch
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Hindustan Times
28 minutes ago
- Hindustan Times
Rajnath appreciates US for backing India's fight against terror
NEW DELHI: Defence minister Rajnath Singh on Tuesday conveyed India's appreciation to the US for its unwavering support to New Delhi in its fight against terrorism in the backdrop of Operation Sindoor, in a telephonic conversation with his American counterpart Pete Hegseth. Rajnath appreciates US for backing India's fight against terror This was their first conversation after India launched Operation Sindoor against Pakistan, New Delhi's direct military response to the April 22 Pahalgam terror strike. Singh also told Hegseth that India reserves the right to respond to cross-border terrorism. 'Glad to speak with the US @SecDef Mr. @PeteHegseth today. Excellent discussion to review the ongoing and new initiatives to further deepen India-US defence partnership and strengthen cooperation in capacity building. Conveyed my deep appreciation for the unwavering support extended by the US to India in its fight against terrorism. Looking forward to meeting him at an early date,' Singh wrote on X after the conversation. Speaking on Operation Sindoor, Singh said India reserves the right to respond to and defend against terrorism and pre-empt as well as deter any further cross-border attacks, people aware of the matter said on condition of anonymity. He also told Hegseth that India's actions during the four-day clash were measured, non-escalatory, proportionate and focused on disabling terrorist infrastructure, the people added. The two leaders had last spoken on May 1 when Singh told Hegseth that the Pahalgam terror attack in which 26 people were killed had exposed Pakistan as a rogue state that is destabilising the region and the world can no longer turn a blind eye to terrorism. India launched Operation Sindoor in the early hours of May 7 and struck terror and military installations in Pakistan and Pakistan-occupied Kashmir (PoK) following the Pahalgam terror strike. It triggered a four-day military confrontation with Pakistan involving fighter jets, missiles, drones, long-range weapons and heavy artillery before the two sides reached an understanding on stopping all military action on May 10. The two leaders also discussed a wide canvas of issues ranging from long-term cooperation in the defence sector, including training and military exchanges, to expanding the industry collaboration, the defence ministry said on Tuesday. 'They agreed to further build upon the momentum of this critical and mutually beneficial partnership across all its pillars such as interoperability, integration of defence industrial supply chains, logistics sharing, increased joint military exercises and cooperation with other like-minded partners,' it said. Hegseth invited Singh to the US for talks to take the bilateral defence partnership forward. Between the launch of the operation in the early hours of May 7 and the ceasefire on May 10 evening, Indian forces bombed nine terror camps in Pakistan and PoK and killed at least 100 terrorists. The Indian Air Force (IAF) struck two terror sites at Markaz Subhanallah in Bahawalpur and Markaz Taiba near Muridke, both in Pakistan's Punjab province, while the army hit targets at seven places, including Mehmoona Joya in Sialkot, Sawai Nala and Syed Na Bilal in Muzaffarabad, Gulpur and Abbas in Kotli, Barnala in Bhimber, and Sarjal. On May 9-10, the IAF struck military targets in Rafiqui, Murid, Chaklala, Rahim Yar Khan, Sukkur, Chunian, Pasrur, Sialkot, Skardu, Sargodha, Jacobabad, Bholari and Malir Cantt in Karachi. Later it emerged that India's targeting of locations within Pakistan during the May 7-10 clash was more extensive than was previously known, with a Pakistani document acknowledging that Indian drones had struck locations ranging from Peshawar in the northwest to Hyderabad in the south. The graphics in the May 18 Pakistani document detailing India's drone strikes on May 8, 9 and 10 listed seven locations --- Peshawar in Khyber-Pakhtunkhwa province, Attock, Bahawalnagar, Gujrat and Jhang in Punjab province, and Chhor and Hyderabad in Sindh province --- that were not acknowledged as targets by Indian officials at any briefings held during or after the hostilities. Pakistan's Operation Bunyan-um-Marsoos, which was mounted in response to Operation Sindoor, 'folded in eight hours' on May 10 belying Islamabad's ambitious target of bringing India to its knees in 48 hours, chief of defence staff General Anil Chauhan said on June 3.
The Hindu
29 minutes ago
- The Hindu
Talks on India-U.S. trade pact enter 6th day; India pushes for duty cuts for labour-intensive sectors
Hectic negotiations between India and the U.S. enter the sixth day on Tuesday (July 1, 2025) in Washington, with the talks reaching a crucial stage and New Delhi demanding greater market access for its labour-intensive goods, an official said. The Indian team, headed by Special Secretary in the Department of Commerce Rajesh Agrawal, is in Washington for negotiations on an interim trade agreement with the U.S. The stay of the Indian officials has been extended. Initially, the delegation was scheduled to stay for two days, with the talks having commenced on June 26. These talks are also important as the suspension date of Mr. Trump's reciprocal tariffs is approaching. It will end on July 9. The two sides are looking at finalising the talks before that, the official said. India has hardened its position on giving duty concessions to American farm products. It is seeking duty concessions for its labour-intensive goods such as textiles, engineering, leather, gems and jewellery. "If the proposed trade talks fail, the 26% tariffs will come into force again," the official added. On April 2, the U.S. imposed an additional 26% reciprocal tariff on Indian goods but suspended it for 90 days. However, the 10% baseline tariff imposed by America remains in place. India is seeking full exemption from the additional 26% tariff. The U.S. is demanding duty concessions in both the agriculture and dairy sectors. But these segments are difficult and challenging areas for India to give duty concessions to the U.S. as Indian farmers are into sustenance farming and have small land holdings. Therefore, these sectors are politically very sensitive. India has not opened up the dairy sector for any of its trading partners in free trade pacts the country has signed so far. The U.S. wants duty concessions on certain industrial goods, automobiles, especially electric vehicles, wines, petrochemical products, dairy, and agricultural items like apples, tree nuts, and genetically modified crops. India is seeking duty concessions for labour-intensive sectors like textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas in the proposed trade pact. The two countries are also looking to conclude talks for the first tranche of the proposed bilateral trade agreement (BTA) by fall (September-October) this year. The pact is aimed at more than doubling bilateral trade to $500 billion by 2030 from the current $191 billion. Before the first tranche, they are trying for an interim trade pact. The U.S. team was here from June 5 to June 11 for the talks. The negotiations will continue both virtually and physically in the days to come. India's merchandise exports to the U.S. rose by 21.78% to $17.25 billion in April-May this fiscal, while imports rose by 25.8% to $8.87 billion. Commenting on India's demand, think tank Global Trade Research Initiative (GTRI) said that as talks for the pact reaching a critical stage, India is pushing hard for full tariff elimination on high-employment exports such as garments, footwear, carpets, and leather goods. Without this relief, the deal will be politically unsellable at home, GTRI Founder Ajay Srivastava said, adding Washington appears unwilling to scrap high MFN (most favoured nation) tariffs or country-specific duties. Under current proposals, Indian goods could face a 10% surcharge on top of MFN rates, eroding competitiveness and effectively reversing market access gains, he said. Merchandise exports to the U.S. rose to $86.5 billion in FY25, up 11.6% from $77.5 billion in FY24. Industrial goods account for the bulk of this trade, with labour-intensive exports forming a significant share. "However, without fast-track trade authority, Washington is unable to cut its MFN [Most Favoured Nation] tariffs across the board. Worse still, U.S. appears to be in no mood to exempt country specific tariffs and just bring it down to 10%," Mr. Srivastava said. This risk, he said, is particularly acute for high labour-intensity sectors, which contributed over $14.3 billion to India's exports to the U.S. in FY25. These include garments ($5.33 billion), textiles and carpets ($2.38 billion), made-ups and worn clothing ($2.95 billion), leather ($795 million), footwear ($461 million), ceramics and stoneware ($1.55 billion), and wood and paper articles ($823 million). These sectors are dominated by small and medium enterprises and are major employment generators in Indian states such as Uttar Pradesh, Tamil Nadu, Gujarat, and West Bengal. Yet, they face some of the steepest U.S. tariffs — often ranging between 8 and 20%, especially for garments and footwear. He added that India's demand is clear that the U.S. must remove all tariffs — both MFN and country-specific — on high and medium labour-intensive goods. He added that these sectors employ millions, particularly in rural and semi-urban regions, and are crucial to India's goals of job creation, MSME growth, and women's economic participation. "Without meaningful tariff relief for these products, Indian negotiators warn, the FTA will be viewed as lopsided and politically untenable," Mr. Srivastava said.
Time of India
31 minutes ago
- Time of India
PM Modi kicks off 5-nation tour: Ghana, Argentina, Brazil and more on itinerary; Brics, trade in focus
PM Modi emplanes for Ghana NEW DELHI: Prime Minister Narendra Modi kicked off the landmark five-nation tour on Wednesday, with visits lined up to Ghana, Trinidad & Tobago, Argentina, Brazil, and Namibia between July 2 and 9. The wide-ranging trip is aimed at enhancing India's deepening engagement with the Global South and its commitment to forging stronger partnerships across the Atlantic. 'I am confident that my visits to the five countries will reinforce our bonds friendship across the Global South, strengthen our partnerships on both sides of the Atlantic, and deepen engagements in the multilateral platforms such as BRICS, the African Union, ECOWAS and the CARICOM," the Prime Minister said in his departure statement. — narendramodi (@narendramodi) PM Modi's first stop is Ghana, where he will be hosted by President John Dramani Mahama. During the July 2–3 visit, PM Modi is set to focus on enhancing cooperation in sectors such as investment, energy, health, security, and development. 'Ghana is a valued partner in the Global South and plays an important role in the African Union and the Economic Community of West African States,' he said. PM will also address the Parliament of Ghana- a gesture he called 'an honour' for both countries as fellow democracies. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Is it better to shower in the morning or at night? Here's what a microbiologist says CNA Read More Undo Then in West Africa, the Prime Minister will travel to Trinidad & Tobago on July 3–4. Calling the Caribbean nation a country with which India shares 'deep-rooted historical, cultural and people-to-people connect,' PM Modi noted that this year marks 180 years since the first Indians arrived there. He will meet President Christine Carla Kangaloo and Prime Minister Kamla Persad-Bissessar, who recently began her second term in office. 'This visit will provide an opportunity to rejuvenate the special bonds of ancestry and kinship that unite us,' he said. Next, PM Modi will head to Buenos Aires, marking the first bilateral visit by an Indian Prime Minister to Argentina in 57 years. Argentina, described as 'a key economic partner in Latin America and a close collaborator in the G20,' is expected to deepen collaboration with India in areas like agriculture, energy, trade, technology and critical minerals. PM Modi is scheduled to meet President Javier Milei, with whom he held a prior meeting last year. The Brazil leg of the trip includes participation in the Brics Summit in Rio de Janeiro on July 6–7, followed by a bilateral state visit to Brasília. 'India is committed to BRICS as a vital platform for cooperation among emerging economies. Together, we strive for a more peaceful, equitable, just, democratic and balanced multipolar world order,' the Prime Minister said. His visit to Brasília- the first by an Indian Prime Minister in nearly six decades- will include talks with President Luiz Inácio Lula da Silva on shared Global South priorities. The tour concludes in Namibia, where PM Modi will meet President Netumbo Nandi-Ndaitwah. Emphasising the 'common history of struggle against colonialism' that binds the two nations, he said, 'It will be a privilege to also address the Joint Session of Namibian Parliament as we celebrate our enduring solidarity and shared commitment for freedom and development.' The Prime Minister's visit is being seen as a significant diplomatic push to reaffirm India's leadership role in the Global South and expand its outreach in both Africa and Latin America.
