logo
Why Trump's tariff threat to India is more about politics than trade

Why Trump's tariff threat to India is more about politics than trade

Time of India10 hours ago
Why Trump's tariff threat to India is more about politics than trade
Ajay Srivastava
Aug 5, 2025, 20:40 IST IST
Washington's tariff pressure comes even as US tech firms rely on India for users, data, and talent — raising questions over whether the dispute is economic strategy or political arm-twisting
By the time this went to print, Trump hadn't specified by how much he will 'substantially raise' tariffs on Indian exports on top of the 25% tariffs already imposed. Whatever the hit, with India's $86.5bn in goods exports to US under threat, it's fair to ask: Is India the only one buying oil from Russia?
Why is US focusing on restricting oil imports? Is its position in the Russia-Ukraine war as clearcut as it claims? Crucially, is Trump targeting India because he can't go after China? It's worth exploring the facts behind the claims.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Trump targets tariff evasion, with eye on China
Trump targets tariff evasion, with eye on China

New Indian Express

time3 minutes ago

  • New Indian Express

Trump targets tariff evasion, with eye on China

WASHINGTON: As the United States ramps up tariffs on major trading partners globally, President Donald Trump is also disrupting strategies that could be used -- by Chinese companies or others -- to circumvent them. Goods deemed to be "transshipped," or sent through a third country with lower export levies, will face an additional 40-percent duty under an incoming wave of Trump tariffs Thursday. The latest tranche of "reciprocal" tariff hikes, taking aim at what Washington deems unfair trade practices, impacts dozens of economies from Taiwan to India. The transshipment rule does not name countries, but is expected to impact China significantly given its position as a manufacturing powerhouse. Washington likely wants to develop supply chains that are less reliant on China, analysts say, as tensions simmer between the world's two biggest economies and the US sounds the alarm on Beijing's excess industrial capacity. But "it's a little more about the short-term effect of strengthening the tariff regime than it is about a decoupling strategy," said Josh Lipsky, chair of international economics at the Atlantic Council. "The point is to make countries worried about it and then have them err on the side of not doing it, because they know that Trump could then jack up the tariff rates higher again," he added, referring to tariff evasion. The possibility of a sharply higher duty is a "perpetual stick in the negotiations" with countries, said Richard Stern, a tax and budget expert at the conservative Heritage Foundation. He told AFP that expanding penalties across the globe takes the focus away from Beijing alone.

Don't give China pass, burn relationship with ‘strong ally' India: Nikki Haley
Don't give China pass, burn relationship with ‘strong ally' India: Nikki Haley

Indian Express

time3 minutes ago

  • Indian Express

Don't give China pass, burn relationship with ‘strong ally' India: Nikki Haley

The US should not burn its relationship with a 'strong ally like India' and give a pass to China, Indian-American Republican leader Nikki Haley said on Tuesday, amid President Donald Trump's attacks against New Delhi over tariffs and purchases of Russian oil. 'India should not be buying oil from Russia. But China, an adversary and the number one buyer of Russian and Iranian oil, got a 90-day tariff pause,' Haley said in a post on X. 'Don't give China a pass and burn a relationship with a strong ally like India,' she said. Haley, the former Governor of South Carolina, was the US Ambassador to the United Nations under Trump's first presidential term, becoming the first Indian-American to be appointed to a cabinet-level post in the US administration. India should not be buying oil from Russia. But China, an adversary and the number one buyer of Russian and Iranian oil, got a 90-day tariff pause. Don't give China a pass and burn a relationship with a strong ally like India. — Nikki Haley (@NikkiHaley) August 5, 2025 In 2013, she officially announced her candidacy for the 2024 presidential election and withdrew from the race in March last year. Her comments came hours after Trump said India has not been a 'good trading partner' and announced he will raise tariffs on India 'very substantially over the next 24 hours' because New Delhi is buying Russian oil and 'fueling' the 'war machine'. India on Monday mounted an unusually sharp counterattack on the US and the European Union for their 'unjustified and unreasonable' targeting of New Delhi for its procurement of Russian crude oil. New Delhi's response came after Trump asserted that Washington will substantially raise tariffs on goods from India over its energy ties with Russia. Meanwhile, Trump, in an interview with CNBC responded to a question on China and its leader, Xi Jinping, and said, 'We have a very good relationship'. Trump added that he might have a meeting with the Chinese President 'before the end of the year, most likely, if we make a deal.' He said he won't have a meeting if a deal doesn't materialise. 'But we're getting very close to a deal. We're getting along with China very well.' Trump added that China is 'very reliant' on the US. 'My relationship with them is very good. I think we'll make a good deal. It's not imperative, but I think we're going to make a good deal.' He added that he has had a 'great relationship' with President Xi. 'We respect him a lot. They respect us a lot.'

Trump suggests Vance is his likely heir apparent in 2028
Trump suggests Vance is his likely heir apparent in 2028

The Hindu

time3 minutes ago

  • The Hindu

Trump suggests Vance is his likely heir apparent in 2028

U.S. President Donald Trump suggested on Tuesday (August 5, 2025) that Vice President J.D. Vance is 'most likely' his heir apparent to serve as the Republican nominee in 2028, the furthest he has gone in backing Mr. Vance as a future presidential candidate. 'Well, I think most likely,' Mr. Trump told reporters when asked whether Mr. Vance was the heir apparent to the movement he has inspired. 'In all fairness, he's the Vice-President.' Mr. Trump also proposed that Mr. Vance and Secretary of State Marco Rubio join forces for a future Republican ticket. While the 2028 race is still years away, Mr. Trump holds considerable influence with the Republican base and any sign that he is backing a candidate carries significant implications. Mr. Trump has declined in the past to offer any endorsement for a 2028 successor. He said in February that Mr. Vance was 'very capable' but that it was too early to name him as the leading candidate. Mr. Vance, a 40-year-old onetime Marine, has carved out a sizable role in the Trump administration, serving as a key diplomat and top surrogate selling Mr. Trump's domestic policy at home and foreign policy abroad. Mr. Rubio, a former Florida Senator, has emerged as a significant figure in an administration that has spent considerable time tackling thorny foreign policy dilemmas. He is the first person since Henry Kissinger to serve as both Secretary of State and National Security Adviser.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store