Tariff drama 2.0: India's last push to seal US trade deal with Trump
Why it matters: Trillions of dollars in global trade are at stake. Countries not covered by new US trade deals risk heavy duties that could disrupt supply chains, raise prices, and trigger retaliatory measures. India's nearly USD 53 billion export sector could face immediate damage if no agreement is reached.IN NUMBERSJuly 9: Deadline for countries to reach deals with the US26 per cent: Earlier proposed US tariff on Indian exportsUSD 53 billion: Estimated value of India's annual exports to the US55 per cent: Current tariff on Chinese goods20 per cent: Tariff on Vietnamese exports under new deal40 per cent: Tariff on transshipped goods from China via VietnamIn-depth: Trump announced a 10 per cent tariff on April 2 but delayed enforcement by 90 days for negotiations. As that deadline nears, countries are scrambling to make last-minute deals. The US has finalised deals with the UK and Vietnam, and eased terms with China, though tariffs remain steep.Vietnam agreed to a deal that applies a 20 per cent tariff on direct exports and a 40 per cent tariff on rerouted goods from countries like China. That's lower than the original 46 per cent Trump proposed, but still well above pre-2024 levels.India's position: India is in the final stretch of negotiations. An announcement is expected within two or three days. Talks centre on the US demand to open up India's agriculture sector to genetically modified corn and soy imports — a politically sensitive issue. India currently bans the cultivation of GM food crops and opposes new imports on the grounds of food security and rural livelihoods.Yet the stakes are high. If no agreement is announced by July 9, nearly all Indian goods entering the US could face a 26 per cent tariff, disrupting trade in pharmaceuticals, textiles, and automotive parts.A parallel legal battle over Trump's tariff powers is also playing out in court. A federal ruling declared most tariffs illegal, but they remain in effect pending an appeals hearing on July 31.advertisementWhat they're saying: 'We're probably going to be sending some letters out, starting probably tomorrow, maybe 10 a day to various countries, saying what they're going to pay to do business with the US,' said Trump on Thursday.'We will not have 100 per cent winners. The FTA will be done in phases, so tricky areas with greater political ramifications will be dealt with later,' said Rajiv Memani, President of the Confederation of Indian Industry.'We are very close to an agreement with India,' said Scott Bessent, US Treasury Secretary.- EndsTune InMust Watch
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
34 minutes ago
- Time of India
India-US trade deal: Rahul Gandhi reacts to Piyush Goyal's 'national interest' remark; claims PM Modi to 'meekly bow' before Trump
Congress leader Rahul Gandhi NEW DELHI: Congress leader Rahul Gandhi on Saturday claimed that Prime Minister Narendra Modi would "meekly bow" to US President Donald Trump , as New Delhi weighs its interests amid ongoing trade talks with Washington. Gandhi's remark was a reaction to Commerce and Industry minister Piyush Goyal 's statement, where he said: "We are not working towards any specific deadlines, we are working towards national interest". Trump has set July 9 as the deadline for trade agreements. "Piyush Goyal can beat his chest all he wants, mark my words, Modi will meekly bow to the Trump tariff deadline," Gandhi wrote on X. The Congerss leader's post on X India will enter into a trade agreement with the US only if its interests are protected and it is able to sustain a tariff advantage over its competitors, while prioritising the interests of farmers, commerce and industry minister Piyush Goyal said Friday. Trump had imposed reciprocal tariffs on nearly 100 countries but agreed to a 90-day pause that is to end Tuesday. India was slapped with 26 per cent reciprocal tariffs. There is uncertainty over whether India and US can agree to an early tranche or a mini deal before that even as a comprehensive bilateral trade agreement is negotiated by Fall (Sept-Oct) after a meeting between Trump and PM Modi. For India, lowering tariffs on farm products, such as maize and soybean, as well as dairy products is a concern. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Is your tinnitus getting worse? Do this immediately (Watch) Hearing Magazine Undo While Goyal did not get into the specifics, he said India will not compromise the interests of farm and dairy sectors. "Farmers' interest is always paramount for Modi government. In any negotiation we have done, you have seen UK, Australia, Mauritius, EFTA and UAE agreements, India's farmers have been protected." The government has refrained from offering concessions in major agricultural products, but for US, it is the main focus. While some government officials said US demands were not very clear, for India, Goyal said Indian expectations for duty concessions in labour-intensive sectors were the focus of the trade deal. India was hoping for duty concessions in leather, footwear, textiles and some auto parts in return for reducing levies on automobiles and American whiskey.
&w=3840&q=100)
Business Standard
36 minutes ago
- Business Standard
Ananth Tech set to launch India's first private satellite broadband service
Ananth Tech gets IN-SPACe nod to launch ₹3,000-crore satellite broadband service by 2028, marking India's first private satcom rollout to rival Starlink, OneWeb, and Amazon Kuiper New Delhi In a significant development for India's space and telecommunications sectors, Hyderabad-based Ananth Technologies is set to become the first private Indian company to offer satellite communication (satcom) services using a domestically-built satellite, according to a report by The Economic Times. This marks a shift in the country's space ecosystem, positioning the firm to directly compete with international players such as Starlink (SpaceX), Eutelsat OneWeb, and Amazon's Project Kuiper. The Indian National Space Promotion and Authorisation Centre (IN-SPACe), the space regulator, has granted Ananth Technologies the go-ahead to roll out broadband-from-space services starting in 2028. The company plans to deploy a 4-tonne geostationary (GEO) communication satellite that will deliver a data capacity of up to 100 gigabits per second (Gbps) to users across the country. An initial investment of ₹3,000 crore has been committed to the venture, with scope for further funding depending on demand, the news report said. GEO vs LEO: The technical edge and trade-offs While many global players operate in low earth orbit (LEO) — typically 400 to 2,000 km from Earth — Ananth Technologies will deploy a satellite in geostationary orbit, over 35,000 km above the planet. LEO satellites, like those used by Starlink, Amazon, and OneWeb, complete an orbit every 1–2 hours, allowing for low-latency broadband. In contrast, GEO satellites orbit the Earth once every 24 hours, appearing stationary from the ground. While latency is higher in GEO systems, they offer broader territorial coverage — a single satellite can blanket the entire Indian subcontinent, unlike LEO constellations that require multiple satellites for complete coverage. Starlink inches closer to final approval This would place Starlink on par with other authorised providers such as Eutelsat OneWeb and Jio Satellite. In May, Starlink received the Global Mobile Personal Communication by Satellite (GMPCS) licence, making it the third satcom firm cleared to offer commercial services in the country. Vodafone Idea joins satellite race with AST SpaceMobile tie-up Last month, Vodafone Idea (Vi) announced a strategic alliance with US-based AST SpaceMobile to bring satellite phone services directly to standard smartphones in India. AST SpaceMobile is developing the world's first cellular broadband network operating entirely from space, targeting both commercial and government sectors. "Vi (Vodafone Idea) and AST SpaceMobile Inc. announced a strategic partnership to expand mobile connectivity across India's unconnected regions. AST SpaceMobile made history by placing the first-ever voice and video call from space using a standard mobile phone, a milestone that demonstrates the real-world viability of its advanced technology," Vodafone Idea said in a statement.
Economic Times
40 minutes ago
- Economic Times
Jane Street fallout: Derivatives trading volumes may be hit
The derivatives market could take a major hit in trading volumes after the Securities and Exchange Board of India (Sebi) cracked down on Jane Street Capital, halting its operations in Mumbai and impounding more than half a billion dollars of local assets. ADVERTISEMENT Analysts said the regulatory action would put pressure on revenue for intermediaries dependent on derivative market activity, with volumes shrinking in response to Sebi's stiff punitive measures against one of the biggest proprietary trading firms in the segment. "Jane Street is one of the largest traders contributing to Indian markets," said Siddarth Bhamre, head of institutional research, Asit C Mehta. "When big players are banned for wrongdoing, others become cautious and reduce activity, leading to lower volumes. Traders may also face fewer counterparties, potentially causing a further drop in F&O volumes ahead." The capital market regulator has taken its toughest action ever against a foreign trading firm by targeting Jane Street, one of the world's largest quant trading firms that's also among the highest paymasters at India's top technology campuses. Highlighting the broader market implications, Zerodha Founder and CEO Nithin Kamath cautioned that action against proprietary trading firms like Jane Street, which contribute nearly half of the options trading volumes, could also dampen retail participation. "There's a flip side. Prop trading firms like Jane Street account for almost 50% of options trading volumes. If they pull back which looks likely it could also impact retail activity, which makes up about 35%. This could spell bad news for both exchanges and brokers," Kamath wrote on X. ADVERTISEMENT He added that the coming days would be crucial in gauging the fallout. "The next few days will be telling. F&O volumes might show just how dependent we are on these prop giants. I'll share more data as and when anything interesting comes up," Kamath wrote on the social media platform. ADVERTISEMENT In the wake of the Sebi order, shares of Nuvama Wealth Management, capital market service provider Central Depository Services and stock exchange BSE slumped following the regulator's Wealth shares fell the most, dropping 10.6% as the firm is Jane Street's domestic trading partner, which got caught up in the regulatory crossfire, triggering investor anxiety despite no direct accusations against the firm. Along with Nuvama Wealth, shares of BSE fell 6.4%, while CDSL plunged 2%. ADVERTISEMENT In a strongly worded 105-page interim order, Sebi accused Jane Street and its associated entities of using complex high-frequency trading strategies to manipulate the Nifty 50 and Bank Nifty Indices. The regulator also said these tactics misled retail options traders and gave Jane Street an edge in India's booming derivatives interim order alleged that Jane Street earned unlawful profits of ₹4,843 crore ($570 million). Jane Street runs its operations in India through four group entities-two based locally and two located in Hong Kong and Singapore, respectively. The firm established its first Indian unit in December 2020, while the other two Asian entities participate in Indian markets as registered foreign investors. (You can now subscribe to our ETMarkets WhatsApp channel)
