India PM Modi faces opposition fury after Trump's 25% tariff threat
FILE PHOTO: U.S. President Donald Trump and Indian Prime Minister Narendra Modi shake hands as they attend a joint press conference at the White House in Washington, D.C., U.S., February 13, 2025. REUTERS/Kevin Lamarque//File Photo
NEW DELHI - Indian opposition parties criticised the government on Thursday, describing U.S. President Donald Trump's threat of a 25% tariff as a diplomatic failure for New Delhi, while the rupee currency tumbled and equity indexes slid in response to the news.
The 25% rate would single out India more harshly than other major trading partners, and threatens to unravel months of talks, undermining one of Washington's strategic partners in the region, viewed as a counterbalance to China.
Trump said the tariff on goods imports from India would start from Friday, in addition to an unspecified penalty for Russian dealings and involvement in the BRICS grouping of nations, but added later that trade talks continued.
In response, the government of Prime Minister Narendra Modi said it was studying the implications of Trump's remarks and was dedicated to securing a fair trade deal.
"This development reflects a broader collapse of foreign policy under the Modi government," a lawmaker of the main opposition Congress said in a notice asking for a discussion of the matter in the lower house.
The debate would focus on the "government's economic and diplomatic failure in preventing the imposition of 25% U.S. tariffs plus penalties on Indian exports," it added.
Commerce Minister Piyush Goyal is expected to brief the lower house later on Thursday, television news channels said.
Top stories
Swipe. Select. Stay informed.
Singapore 17-member committee to drive roll-out of autonomous vehicles in Singapore
Asia US-Malaysia tariff deal set for Aug 1 after Trump-Anwar phone call
Singapore Underground pipe leak likely reason for water supply issues during Toa Payoh fire: Town council
Business Singapore gold investment soars 37% to 2.2 tonnes in Q2 while jewellery demand wanes
Multimedia 60 years, 60 items: A National Day game challenge
Life Milo tees, kaya toast pimple patches, crockery: Here are the SG60 merch to collect
Business Deepening Singapore-Latin America ties a matter of urgency amid global trade uncertainty: Alvin Tan
Singapore 'Switching careers just as I became a dad was risky, but I had to do it for my family'
Economists warned the steep tariff could hurt India's manufacturing ambitions and trim up to 40 basis points from economic growth in the financial year to March 2026.
India's benchmark equity indices, the Nifty 50 and BSE Sensex, fell about 0.6% each, while the rupee declined to 87.74, its lowest in more than five months, before paring losses.
India has received a "raw deal", said Priyanka Kishore, an economist at Asia Decoded.
"While further trade talks may bring the tariff rate down, it appears unlikely that India will secure a significantly better outcome than its eastern neighbours," she added.
That would raise questions about India's relative appeal as a China plus one destination, she said, referring to a strategy of diversifying supply chains through manufacturing outside China to reduce geopolitical and operational risks.
Trade talks continued, Trump said on social media, however, as nations face a Friday deadline to strike deals on reciprocal tariffs or have a U.S. tariff slapped on their exports.
The U.S. levy on India exceeds those achieved by some other nations in deals with the Trump administration. For example, the tariff on Vietnam is set at 20% and on Indonesia at 19%, with levies of 15% on Japanese and European Union exports.
On Wednesday, Trump said Washington had reached a trade deal with India's arch-rival Pakistan that Islamabad said would lead to lower tariffs on its exports, but neither side have yet revealed the agreed rate.
Since India's short but deadly conflict with Pakistan in May, New Delhi has been unhappy about Trump's closeness with Islamabad and has protested, casting a shadow over trade talks.
Despite former public displays of bonhomie between Trump and Modi, India has taken a slightly harder stance against the United States in recent weeks.
Trump has repeatedly taken credit for the India-Pakistan ceasefire he announced on social media on May 10, but India disputes his claim that it resulted from his intervention and trade threats.
"The country is now bearing the cost of Narendra Modi's friendship," Congress said.
The United States, the world's largest economy, now has a trade deficit of $45.7 billion with India, the fifth largest.
Russia remained India's top oil supplier during the first six months of 2025, accounting for 35% of overall supplies.
"I don't care what India does with Russia," Trump said in a Truth Social post on Thursday, adding, "They can take their dead economies down together, for all I care." REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
13 minutes ago
- Straits Times
Mexico set to discuss US tariffs with Canada as ministers visit
Sign up now: Get ST's newsletters delivered to your inbox MEXICO CITY - Mexican Economy Minister Marcelo Ebrard said he is set to speak with Canada's finance minister, who is visiting Mexico City, later on Tuesday about the two countries' experiences in dealing with tariffs imposed on goods shipped to the United States. "They want to know how Mexico is getting these results," Ebrard told journalists. Mexico was able to avoid 30% tariffs on its shipments to the U.S. set to come into force last week, securing a 90-day pause to work on a trade deal with the government of U.S. President Donald Trump. Meanwhile, Trump slapped a 35% duty on many goods coming from Canada, hiking the rate from a 25% fentanyl-related tariff imposed earlier this year. "We're going to exchange experiences," Ebrard said. "They're paying a 35% tariff, and Mexico isn't." Mexico is still subject to the previously imposed 25% fentanyl tariffs, though goods sent under the United States-Mexico-Canada (USMCA) trade agreement - which are most of them - are exempt. Trump has said the U.S. would continue to levy a 50% tariff on Mexican steel, aluminum and copper and a 25% tariff on Mexican autos and on the non-USMCA-compliant goods. Mexican President Claudia Sheinbaum met with the Canadian finance minister, Francois-Philippe Champagne, as well as Foreign Minister Anita Anand, earlier in the day at Mexico's national palace. "We're strengthening the relationship between our countries," she said in a post on X. REUTERS
Straits Times
13 minutes ago
- Straits Times
US to investigate the use of AI to personalise airline ticket prices
Sign up now: Get ST's newsletters delivered to your inbox A plane of US airline Delta approaches for landing at Benito Juarez International Airport in Mexico City on July 22, 2025. WASHINGTON - Transportation Secretary Sean Duffy said on Aug 5 the department has concerns about the use of AI to set personalised airline ticket prices and will investigate if anyone does so. Last week, Delta Air Lines told lawmakers it will not and has not used AI to set prices for individual consumers. 'To try to individualise pricing on seats based on how much you make or don't make or who you are, I can guarantee you that we will investigate if anyone does that,' Mr Duffy said. 'We would engage very strongly if any company tries to use AI to individually price their seating.' Mr Duffy noted Delta clarified that it would not use AI for pricing individual tickets, 'and I'll take them at face value.' Late in July, Democratic Senators Ruben Gallego, Mark Warner and Richard Blumenthal said they believed the Atlanta-based airline would use AI to set individual prices , which would 'likely mean fare price increases up to each individual consumer's personal 'pain point.'' Delta previously said it plans to deploy AI-based revenue management technology across 20 per cent of its domestic network by the end of 2025 in partnership with Fetcherr, an AI pricing company. Fetcherr on its website says its technology is 'trusted by the world's leading airlines,' and lists Delta, Westjet, Virgin Atlantic, Viva and Azul. Top stories Swipe. Select. Stay informed. Singapore More train rides taken in first half-year, but overall public transport use stays below 2019 levels Singapore BlueSG needs time to develop software, refresh fleet, say ex-insiders after winding-down news Asia Cambodia-Thailand border clash a setback for Asean: Vivian Balakrishnan Singapore 'She had a whole life ahead of her': Boyfriend mourns Yishun fatal crash victim Singapore Doctor hounded ex-girlfriend, threatened to share her intimate photos, abducted her off street Asia Trump's transactional foreign policy fuels 'US scepticism' in Taiwan Business Women on corporate boards give firms a competitive advantage, says Australian Governor-General Singapore CEO of sports car distributor accused of offences including multiple counts of false trading American Airlines CEO Robert Isom said last month using AI to set ticket prices could hurt consumer trust. Democratic lawmakers Greg Casar and Rashida Tlaib have introduced legislation to bar companies from using AI to set prices or wages based on Americans' personal data and would specifically ban airlines raising individual prices after seeing a search for a family obituary. Delta said airlines have used dynamic pricing for more than three decades, in which pricing fluctuates based on a variety of factors like overall customer demand, fuel prices and competition, but not a specific consumer's personal information. REUTERS
Straits Times
13 minutes ago
- Straits Times
US to investigate use of AI to personalise airline ticket prices
Sign up now: Get ST's newsletters delivered to your inbox A plane of US airline Delta approaches for landing at Benito Juarez International Airport in Mexico City on July 22, 2025. WASHINGTON - Transportation Secretary Sean Duffy said on Aug 5 the department has concerns about the use of AI to set personalised airline ticket prices and will investigate if anyone does so. Last week, Delta Air Lines told lawmakers it will not and has not used AI to set prices for individual consumers. 'To try to individualise pricing on seats based on how much you make or don't make or who you are, I can guarantee you that we will investigate if anyone does that,' Mr Duffy said. 'We would engage very strongly if any company tries to use AI to individually price their seating.' Mr Duffy noted Delta clarified that it would not use AI for pricing individual tickets, 'and I'll take them at face value.' Late in July, Democratic Senators Ruben Gallego, Mark Warner and Richard Blumenthal said they believed the Atlanta-based airline would use AI to set individual prices , which would 'likely mean fare price increases up to each individual consumer's personal 'pain point.'' Delta previously said it plans to deploy AI-based revenue management technology across 20 per cent of its domestic network by the end of 2025 in partnership with Fetcherr, an AI pricing company. Fetcherr on its website says its technology is 'trusted by the world's leading airlines,' and lists Delta, Westjet, Virgin Atlantic, Viva and Azul. American Airlines CEO Robert Isom said last month using AI to set ticket prices could hurt consumer trust. Democratic lawmakers Greg Casar and Rashida Tlaib have introduced legislation to bar companies from using AI to set prices or wages based on Americans' personal data and would specifically ban airlines raising individual prices after seeing a search for a family obituary. Delta said airlines have used dynamic pricing for more than three decades, in which pricing fluctuates based on a variety of factors like overall customer demand, fuel prices and competition, but not a specific consumer's personal information. REUTERS
