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Hindustan Times
33 minutes ago
- Hindustan Times
Why did Donald Trump warn tech giants like Google and Microsoft against hiring Indians?
US President Donald Trump on Wednesday lashed out at major American technology companies for outsourcing manufacturing to China and employing workers in countries like India. US President Donald Trump gestures during an event in Washington DC, July 23, 2025(REUTERS) Speaking at the AI Summit in Washington, Trump declared that such practices would no longer be tolerated under his administration. 'Many of our largest tech companies have reaped the blessings of American freedom while building their factories in China, hiring workers in India and slashing profits in Ireland, you know that,' Donald Trump said. 'All the while dismissing and even censoring their fellow citizens right here at home. Under President Trump, those days are over.' The remarks came as the President signed three executive orders aimed at boosting the US artificial intelligence (AI) sector. Among these was a sweeping White House action plan titled the America's AI action plan, designed to secure US leadership in global AI development. 'America first' strategy Trump urged technology giants like Google and Microsoft that are based in US to adopt a more patriotic approach to their operations, aligning with what he described as national interests. 'We need US technology companies to be all in for America. We want you to put America first. You have to do that. That's all we ask,' news agency PTI quoted Trump as saying. He further called for 'a new spirit of patriotism and national loyalty in Silicon Valley and long beyond Silicon Valley.' Framing AI development as essential to economic and military supremacy, Trump declared: 'America is the country that started the AI race, and as president of the United States, I'm here today to declare that America is going to win it.' He added, 'Winning this competition will be a test of our capacities unlike anything since the dawn of the space age.' Trump's recent comments criticising American tech companies for outsourcing jobs and hiring foreign workers have sparked concern among the global tech community, particularly in countries like India. While no formal policy changes have been announced as of now, industry experts say the President's remarks could influence the hiring decisions of major tech firms that depend on skilled talent from India. Indian professionals working in areas such as software development, data science, and artificial intelligence in the US may now face growing uncertainty.
The Print
an hour ago
- The Print
India uses BRICS to push reforms—not to challenge the US
These nations are now challenging the hegemony of the West. Calls for de-dollarisation—reducing reliance on the US dollar in trade and finance— are becoming prominent, posing a threat to America's financial and geopolitical dominance. It gives China and Russia (and India too) a louder voice on the world stage. It fuels global economic realignment away from the dollar and Western institutions, pointing to a multipolar world order—something that US President Donald Trump doesn't support. Although forming groups of countries to promote cooperation is common globally, BRICS is more than a conventional grouping. It is a group of countries challenging the clout of the developed powers, particularly the US and European nations. In 2010, the first five members—Brazil, Russia, India, China, and South Africa—constituted 18 per cent of the global GDP. Their collective share has risen to 26.5 percent in 2025. The latest edition of the BRICS Summit was significant because all 10 member countries participated. It included Iran, Egypt, Ethiopia, and the UAE, which attended as member states for the first time at the 2024 summit in Russia, and Indonesia, which joined in early 2025 as the first Southeast Asian country in the bloc. With its expansion, the group is now known as BRICS Plus—a term first used at the 2024 summit. Trump's worries with BRICS The recent expansion of BRICS, with five new members joining, has increased the worries of the West, particularly the US. And without mincing words, Trump has started expressing his unhappiness over the developments happening in BRICS. Here are the key reasons why Trump opposes BRICS: The primary reason is that both the original members (Brazil, Russia, India, China, South Africa) and new entrants like Saudi Arabia, UAE, Egypt, Iran, and Ethiopia are openly discussing reducing reliance on the US dollar in trade and finance. Trump's long-standing 'America First' stance makes any move away from the dollar a direct challenge to U.S. economic influence and its ability to enforce sanctions. The second point that irks Trump is BRICS' geopolitical opposition to the West. BRICS increasingly positions itself as a counterweight to Western institutions like the G7, the International Monetary Fund (IMF), and the World Bank. The deepening ties between China and Russia within BRICS are seen as part of a broader anti-Western alignment. Third, Trump has consistently taken a hardline stance on China, through trade wars, tariffs, tech and investment restrictions, etc. BRICS giving China a leadership platform to challenge the US on the global stage agitates him. He views BRICS as a vehicle for China's global expansion under the guise of multipolarity. Fourth, the inclusion of Saudi Arabia and Iran gives BRICS influence over global energy markets. There is growing potential for oil trade to be conducted in non-dollar currencies (e.g., yuan or BRICS currency), which would weaken the petrodollar system—a critical pillar of US global economic power. Fifth, Trump perceives BRICS expansion as a sign that the 'Global South' is drifting away from Western influence, forming its own independent bloc. This runs contrary to Trump's vision of negotiating 'from strength,' where US dominance is unquestioned. Sixth, Trump views global influence in zero-sum terms. Any rise of a non-Western grouping that excludes the US is seen as a personal and national affront. BRICS summits that propose alternative visions for world order without US involvement are perceived as a threat to 'American prestige'—something Trump values highly. He has threatened to impose higher tariffs on countries siding with the BRICS. He has already announced the imposition of 50 per cent tariffs on Brazil. Also read: BRICS nations resist 'anti-American' label after Trump tariff threat India's pragmatic approach Although India is a member of BRICS, its approach is more nuanced, balanced, and pragmatic compared to other members. India's stance is shaped by its national interests, strategic autonomy, and growing global ambitions. While it has been trying to promote its economic interests by promoting international trade and settlements in rupee—thereby reducing dependence on dollar—India is not anti-dollar. It supports a broader effort to diversify the global financial system, reduce dependency on a single currency, and promote a multipolar world order. India has initiated bilateral trade in rupees with countries such as Russia, the UAE, Sri Lanka, and Mauritius to reduce its forex outflows. So far, more than 20 countries have opened Vostro accounts to facilitate trade settlement in domestic currencies. India backs BRICS to create alternative payment mechanisms, like using local currencies or discussions around a potential BRICS currency, but remains cautious about their practicality. India understands the dominance of the dollar in global trade and finance and has not called for its outright replacement (or de-dollarisation). Instead, it favors the coexistence of multiple reserve currencies (like the euro, the yuan, and the rupee). India does not see BRICS as an anti-US bloc. It views the grouping as a platform for reforming global institutions, not for confrontation. India supports a world with multiple power centres, where the voices of emerging economies are better represented. India has been pleading for long to bring reforms in institutions like the United Nations, IMF, and World Bank, which it believes are West-dominated and don't reflect current global realities. In this context, under India's G20 presidency, an expert group was formed to prepare a report on reforms for global financial institutions. This group was co-convened by economists Larry Summers and NK Singh. Their report focused on strengthening Multilateral Development Banks (MDBs). Guided by its own objectives, India uses BRICS to promote cooperation in technology, finance, infrastructure, and sustainable development. If the US is irked by Chinese dominance in BRICS, India too remains wary of China's influence in the bloc and rejects any behaviour that undermines its sovereignty or aligns too closely with Chinese interests. At the global level, India's balanced approach is to serve its national objectives and achieve its goals of protecting its national sovereignty. By promoting international settlements in Indian currency, reducing dependence on dollars, it's also trying to stop the de-weaponisation of dollars. India is promoting self-reliance through 'Aatmanirbhar Bharat', and discourages efforts of others (both the West and China) to weaponise global value chains. By promoting digital rupee payments, India is also trying to de-weaponise payment systems. These efforts protect our own national interest by not allowing others to dominate India. In the past, India has been able to demonstrate its clout by purchasing oil from Russia and Iran, promoting digital payments and pushing for reforms in global institutions at international fora. It's interesting that the US has not objected to these moves—perhaps looking at India as a force to balance the dominance of other countries, including China. Ashwani Mahajan is a professor at PGDAV College, University of Delhi. He tweets @ashwani_mahajan. Views are personal. (Edited by Ratan Priya)
Indian Express
an hour ago
- Indian Express
India misses chance to tackle UK carbon tax in trade pact. Why is it concerning?
India's efforts to secure a concession for its small and medium enterprises under the UK's Carbon Border Adjustment Mechanism (CBAM) did not materialise, as the text of the India-UK Free Trade Agreement (FTA) released on Thursday made no mention of a resolution on the contentious issue. The UK's CBAM, which is set to come into effect from January 1, 2027, is expected to impact India's exports of steel, aluminium and other carbon-intensive goods. India's steel and aluminium exports are already facing steep tariff restrictions from the US after US President Donald Trump raised the tariffs on the items to 50 per cent. An absence of a resolution not only weakens India's position—as it missed the opportunity to address the levy within a legal framework—but also casts a shadow over the duty concessions won for 99 per cent of its exports to the UK under the long-negotiated trade deal as UK could raise tariffs on industrial imports once it implements CBAM. Trade experts believe that if the UK has not conceded ground on the carbon tax, the EU may also refuse to offer any concessions on its own carbon measures. Hervé Delphin, EU Ambassador to India, told The Indian Express last month that the EU's CBAM is not part of negotiations. 'CBAM is not a trade measure. It is not part of trade and the FTA. It's about compliance with our climate agenda to accelerate decarbonisation,' Delphin told the newspaper. While the Ministry of Commerce and Industry claims that the UK trade deal will allow around 99 per cent of Indian exports to benefit from zero-duty access to the UK market, CBAM significantly could alter that. The UK government has said that the carbon tax will apply to both 'direct and indirect emissions' embodied in imported CBAM goods, 'including those emissions embodied in relevant precursor goods at a point further up the value chain'. This means that London, based on its carbon calculations, could impose duties on Indian intermediate exports as well as finished products. Indian goods exports worth at least $775 million to the UK, therefore, continue to face the risk of higher duties under its carbon tax mechanism. As per the CBAM regulation, the UK will place a carbon price on some of the most emissions-intensive industrial goods imported to the UK—covering the aluminium, cement, fertiliser, hydrogen, and iron & steel sectors—which are considered at risk of carbon leakage. But the scope will increase going forward. 'The sectoral and product-level scope of the CBAM will be kept under review beyond 2027 as new evidence comes to light to reflect changes to carbon leakage risk, as well as methodological and technological advances,' a statement read. India's exports to the UK rose by 12.6 per cent to $14.5 billion, while imports grew by 2.3 per cent to $8.6 billion in 2024–25. Bilateral goods trade between India and the UK increased to $21.34 billion in 2023–24 from $20.36 billion in 2022–23. As no concession was secured under the FTA, India could challenge the regulation at the WTO on the grounds that CBAM violates special and differential treatment (SDT) provisions, which advocate longer implementation periods for developing countries to safeguard their trade interests. However, trade law experts warn that the CBAM regulations in both the UK and EU may be in effect by the time the WTO rules on the matter, given the dysfunction of the organisation's Dispute Settlement Body (DSB). They also said there is limited likelihood of an adverse ruling on CBAM at the WTO, as the EU remains one of the strongest supporters of the institution. A more probable outcome would be adjustments to the regulation rather than its complete withdrawal. Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More
