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News18
3 hours ago
- Business
- News18
Trumps tariff on India major setback in bilateral relations, say experts
New York/Washington, Jul 30 (PTI) US President Donald Trump's move to levy a sweeping 25 per cent tariff on Indian imports is a 'major setback" in bilateral relations at a time when New Delhi is striving to become an alternative destination to China for American investors and traders, a former US Trade Representative official said. 'While there were early indications that a trade deal with India was imminent, it turned out that this was not possible," Senior Vice President of Asia Society Policy Institute (ASPI) and former Deputy US Trade Representative Wendy Cutler said in a statement. Trump on Wednesday announced imposing a 25 per cent tariff on all goods coming from India starting August 1, plus an unspecified penalty for buying Russian crude oil and military equipment. The surprise announcement came a day after Indian officials said that a US trade team would visit from August 25 to negotiate a trade deal. Cutler said the 25 per cent tariff assigned to India is a 'major setback" in US-India relations at a time when Delhi is striving to become an alternative destination to China for US investors and traders. 'Hopefully, the high tariff will spur India to reconsider its current positions and take bold steps to address US concerns, including lowering its tariffs and eliminating the litany of non-tariff measures it imposes," she said. Pointing to India's 'domestic protectionist forces" that have obstructed trade deals earlier, Cutler said there were hopes that things were different this time around but 'they never materialized". ASPI's Director of South Asia Intitiatives Farwa Aamer said there was strong optimism around the robust five rounds of trade talks, but clearly there was not enough to satisfy Washington's expectations. 'These negotiations were always going to be complex, and even with an early start to the talks, the timeline was too tight given India's sectoral concerns and strong reservations on opening access to its dairy and agriculture markets," Aamer said. The 25 per cent rate is much higher than that of Japan, Vietnam, and Indonesia, which means India loses some of its competitive advantage. 'This will certainly impact the export sector, making the case for fast-tracking negotiations on the BTA as they go into the next round of talks in August," she said. Aamer added that the measure may also 'dim" the confidence in the US-India bilateral relationship. 'There is the India-Pakistan ceasefire mediation narrative that the president has championed and India has repeatedly dismissed. The Russia and BRICS angle is another factor. All eyes are on how India will deal with this 'temporary measure'," Aamer said. Former advisor to President Joe Biden and a Democrat Ajay Bhutoria voiced 'serious alarm" over the 25 per cent tariff and penalty announced by Trump on India, characterizing this action as 'signalling the deepest decline" in India-US relations under the current administration. In a post on social media, Trump said that the US has a massive trade deficit with India and also criticised India for buying a 'vast majority" of its military equipment and energy from Russia. Bhutoria said that as a committed Democrat, he is 'profoundly" concerned by this development. 'I had earlier cautioned the Indian-American community about the potential for this outcome" and to vote for Democratic leader and former Vice President Kamala Harris in the 2024 elections. 'Now we are experiencing its effects. The tariff puts the livelihoods of numerous South Asians at risk and jeopardizes years of advancement done in US-India relationship under President (Barack) Obama and President Biden," he said. Bhutoria added that the India-USA relationship has fallen to its most challenging phase due to flawed policies, with this 25 per cent tariff plus penalty set to start on August 1st, adding that this 'stringent measure" endangers 'our economic stability and cultural connections". Trump also said that the August 1 deadline for tariffs stands strong and will not be extended. 'A Big Day for America," he said. 'Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country. Also, they have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of energy, along with China, at a time when everyone wants Russia to stop the killing in Ukraine — All things not Good! 'India will therefore be paying a tariff of 25 per cent, plus a penalty for the above, starting on August 1st," Trump said. Meanwhile, the Indian government said in a statement that it has taken note of Trump's statement on tariffs and is studying its implications. 'India and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective," the statement said. 'The government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs and MSMEs. The government will take all steps necessary to secure our national interest, as has been the case with other trade agreements, including the latest comprehensive economic and trade agreement with the UK," it sad. PTI YAS HVA (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: July 30, 2025, 22:30 IST News agency-feeds Trumps tariff on India major setback in bilateral relations, say experts Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Yahoo
16 hours ago
- Business
- Yahoo
US-China tariff talks may provide clues on a possible Trump-Xi meeting
Sweden US China Trade Talks STOCKHOLM (AP) — Top trade officials from China and the United States launched a new round of talks on Monday in a bid to ease tensions over tariffs between the world's two biggest national economies. U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng were meeting at the offices of Sweden's prime minister for two days of talks, which Bessent has said will likely lead to an extension of current tariff levels. But other possible outcomes will be scrutinized by markets and businesses for signs of a rapprochement, after brinkmanship earlier this year. Analysts say the talks could set the stage for a possible meeting between U.S. President Donald Trump and Chinese President Xi Jinping later this year. Other issues on the agenda include access of American businesses to the Chinese market; Chinese investment in the U.S.; components of fentanyl made in China that reach U.S. consumers; Chinese purchases of Russian and Iranian oil; and American steps to limit exports of Western technology — like chips that help power artificial intelligence systems. The talks ended for the day after nearly five hours on Monday, and were set to reconvene on Tuesday morning. 'Large and confident partner' Wendy Cutler, a former U.S. trade negotiator and now vice president at the Asia Society Policy Institute, said that Trump's team would face challenges from 'a large and confident partner that is more than willing to retaliate against U.S. interests.' Rollover of tariff rates 'should be the easy part,' she said, warning that Beijing has learned lessons since the first Trump administration and 'will not buy into a one-sided deal this time around.' 'Beijing is more prepared and will insist on movement on U.S. tech export controls at a minimum — a difficult ask for Washington,' she said, adding that many conversations will take place in the lead-up to any Xi-Trump summit. 'Success is far from guaranteed," Cutler said. 'There are numerous trip wires that can throw a wrench in this preparatory process.' The U.S.-China trade talks are the third this year, nearly four months after Trump upended global trade with his sweeping tariff proposals, including an import tax that shot up to 145% on Chinese goods. China retaliated with tariffs reaching 125% against U.S. goods, sending global financial markets into a temporary tailspin. Extending a 90-day pause The Stockholm meeting, following similar talks in Geneva and London, is set to extend a 90-day pause on those tariffs. During the hiatus, U.S. tariffs have been lowered to 30% on Chinese goods, and China set a 10% tariff on U.S. products. The Trump administration, which just completed a deal on tariffs with the European Union, wants to reduce a trade deficit of $904 billion overall last year, including a nearly $300 billion trade deficit with China. China's Commerce Ministry said last week that the 'consultations' would raise shared concerns through the principles of 'mutual respect, peaceful coexistence and win-win cooperation.' The talks with Beijing are part of a flurry of U.S. trade negotiations set off by Trump's arm-twisting 'Liberation Day' tariffs against dozens of countries. Since then, some talks have borne fruit in reaching deals. Others have not. Without an extension by Aug. 12, the tit-for-tat U.S.-China tariffs could snap back to the triple-digit levels seen before the 90-day pause reached in Geneva. Many other countries — including some developing ones that depend on exports to the U.S. — face a deadline of Friday, as the Trump administration has said that letters will go out beforehand with set rates. Critics say Trump's tariffs penalize Americans by forcing U.S. importers to shoulder the costs or pass them on to consumers through higher prices. Suggestion of stability On Friday, Trump told reporters that 'we have the confines of a deal with China' — just two days after Bessent told MSNBC that a 'status quo' had been reached between the two sides. While the Chinese side has offered little guidance about the specifics of its aims in Stockholm, Bessent has suggested that the situation has stabilized to the point that China and the U.S. can start looking toward longer-term balance between their economies. For years, since China vaulted into the global trading system about two decades ago, the United States has sought to press leaders in Beijing to encourage more consumption in China and wrest greater market access to foreign-made — including American — goods. Other sticking points in the relationship include overcapacity in China — by far the world's largest manufacturer — and concerns about whether Beijing is doing enough to control chemicals used to make fentanyl, analysts say. In Stockholm, the Chinese will likely demand the removal of a 20% fentanyl-related tariff that Trump imposed earlier this year, said Sun Yun, director of the China program at the Washington-based Stimson Center. Looking long-term Experts say long-term progress in the U.S.-China trade relationship will hinge on structural changes. Those include increased manufacturing in the United States, which is part of Trump's ambition. On the Chinese side, that could involve a reduction of excess Chinese production in many industries, including electric vehicles and steel, and increased Chinese consumer spending to ease imbalances in China's export-driven economy. Sean Stein, president of the U.S.-China Business Council, said the the talks in Stockholm offer an opportunity for the two governments to address structural reform issues. Businesses will watch for clues about a possible Trump-Xi summit, because any real deal will depend on a meeting between the pair, he said. A deal is possible because 'a lot of the things that the U.S. wants, the Chinese want as well,' Stein said. China, for example, is interested in buying U.S. soybeans, and aircraft and parts, and Chinese businesses are interested in investing in U.S. manufacturing — which would help meet Trump's goal of reindustrialization. Bessent has also said the Stockholm talks could address Chinese purchases of Russian and Iranian oil. ___ Didi Tang and Josh Boak in Washington, and Ken Moritsugu in Beijing, contributed to this report. Solve the daily Crossword
Boston Globe
a day ago
- Business
- Boston Globe
Top Chinese, US trade officials huddle in Sweden for second day of thorny talks over tariffs
The United States has struck deals over tariffs with some of its key trading partners — including Britain, Japan and the European Union — since President Donald Trump announced 'Liberation Day' tariffs against dozens of countries in April. China remains perhaps the biggest unresolved case. Advertisement 'The Chinese have been very pragmatic,' Greer said in comments posted on social media by his office late Monday. 'Obviously we've had a lot of tensions over the years. We have tensions now, but the fact that we are regularly meeting with them to address these issues gives us a good footing for these negotiations.' 'Whether there will be a deal or not, I can't say,' Greer added in the clip posted on X from MSNBC's 'Morning Joe'. 'Whether there's room for an extension, I can't say at this point. But the conversations are constructive and they're going in the right direction.' Many analysts expect that the Stockholm talks, at a minimum, will result in an extension of current tariff levels that are far lower than the triple-digit percentage rates as the U.S.-China tariff tiff crescendoed in April, sending world markets into a temporary tailspin. Advertisement The two sides backed off the brink during bilateral talks in Geneva in May and agreed to a 90-day pause — which is set to end on Aug. 12 — of those sky-high levels. They currently stand at U.S. tariffs of 30% on Chinese goods, and China's 10% tariff on U.S. products. Other issues on the agenda include access of American businesses to the Chinese market; Chinese investment in the U.S.; components of fentanyl made in China that reach U.S. consumers; Chinese purchases of Russian and Iranian oil; and American steps to limit exports of Western technology, like chips that help power artificial intelligence systems. Wendy Cutler, a former U.S. trade negotiator and now vice president at the Asia Society Policy Institute, said that Trump's team would face challenges from 'a large and confident partner that is more than willing to retaliate against U.S. interests.' Rollover of tariff rates 'should be the easy part,' she said, warning that Beijing has learned lessons since the first Trump administration and 'will not buy into a one-sided deal this time around.' On Monday, police have cordoned off a security zone along Stockholm's vast waterfront as rubbernecking tourists and locals sought a glimpse of the top-tier officials through a phalanx of TV news cameras lined up behind metal barriers. Flagpoles at the prime minister's office were festooned with the American and Chinese flags.
The Mainichi
2 days ago
- Business
- The Mainichi
US-China tariff talks may provide clues on a possible Trump-Xi meeting
STOCKHOLM (AP) -- Top trade officials from China and the United States launched a new round of talks on Monday in a bid to ease tensions over tariffs between the world's two biggest national economies. U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng were meeting at the offices of Sweden's prime minister for two days of talks, which Bessent has said will likely lead to an extension of current tariff levels. But other possible outcomes will be scrutinized by markets and businesses for signs of a rapprochement, after brinkmanship earlier this year. Analysts say the talks could set the stage for a possible meeting between U.S. President Donald Trump and Chinese President Xi Jinping later this year. Other issues on the agenda include access of American businesses to the Chinese market; Chinese investment in the U.S.; components of fentanyl made in China that reach U.S. consumers; Chinese purchases of Russian and Iranian oil; and American steps to limit exports of Western technology -- like chips that help power artificial intelligence systems. The talks ended for the day after nearly five hours on Monday, and were set to reconvene on Tuesday morning. 'Large and confident partner' Wendy Cutler, a former U.S. trade negotiator and now vice president at the Asia Society Policy Institute, said that Trump's team would face challenges from "a large and confident partner that is more than willing to retaliate against U.S. interests." Rollover of tariff rates "should be the easy part," she said, warning that Beijing has learned lessons since the first Trump administration and "will not buy into a one-sided deal this time around." "Beijing is more prepared and will insist on movement on U.S. tech export controls at a minimum -- a difficult ask for Washington," she said, adding that many conversations will take place in the lead-up to any Xi-Trump summit. "Success is far from guaranteed," Cutler said. "There are numerous trip wires that can throw a wrench in this preparatory process." The U.S.-China trade talks are the third this year, nearly four months after Trump upended global trade with his sweeping tariff proposals, including an import tax that shot up to 145% on Chinese goods. China retaliated with tariffs reaching 125% against U.S. goods, sending global financial markets into a temporary tailspin. Extending a 90-day pause The Stockholm meeting, following similar talks in Geneva and London, is set to extend a 90-day pause on those tariffs. During the hiatus, U.S. tariffs have been lowered to 30% on Chinese goods, and China set a 10% tariff on U.S. products. The Trump administration, which just completed a deal on tariffs with the European Union, wants to reduce a trade deficit of $904 billion overall last year, including a nearly $300 billion trade deficit with China. China's Commerce Ministry said last week that the "consultations" would raise shared concerns through the principles of "mutual respect, peaceful coexistence and win-win cooperation." The talks with Beijing are part of a flurry of U.S. trade negotiations set off by Trump's arm-twisting "Liberation Day" tariffs against dozens of countries. Since then, some talks have borne fruit in reaching deals. Others have not. Without an extension by Aug. 12, the tit-for-tat U.S.-China tariffs could snap back to the triple-digit levels seen before the 90-day pause reached in Geneva. Many other countries -- including some developing ones that depend on exports to the U.S. -- face a deadline of Friday, as the Trump administration has said that letters will go out beforehand with set rates. Critics say Trump's tariffs penalize Americans by forcing U.S. importers to shoulder the costs or pass them on to consumers through higher prices. Suggestion of stability On Friday, Trump told reporters that "we have the confines of a deal with China" -- just two days after Bessent told MSNBC that a "status quo" had been reached between the two sides. While the Chinese side has offered little guidance about the specifics of its aims in Stockholm, Bessent has suggested that the situation has stabilized to the point that China and the U.S. can start looking toward longer-term balance between their economies. For years, since China vaulted into the global trading system about two decades ago, the United States has sought to press leaders in Beijing to encourage more consumption in China and wrest greater market access to foreign-made -- including American -- goods. Other sticking points in the relationship include overcapacity in China -- by far the world's largest manufacturer -- and concerns about whether Beijing is doing enough to control chemicals used to make fentanyl, analysts say. In Stockholm, the Chinese will likely demand the removal of a 20% fentanyl-related tariff that Trump imposed earlier this year, said Sun Yun, director of the China program at the Washington-based Stimson Center. Looking long-term Experts say long-term progress in the U.S.-China trade relationship will hinge on structural changes. Those include increased manufacturing in the United States, which is part of Trump's ambition. On the Chinese side, that could involve a reduction of excess Chinese production in many industries, including electric vehicles and steel, and increased Chinese consumer spending to ease imbalances in China's export-driven economy. Sean Stein, president of the U.S.-China Business Council, said the the talks in Stockholm offer an opportunity for the two governments to address structural reform issues. Businesses will watch for clues about a possible Trump-Xi summit, because any real deal will depend on a meeting between the pair, he said. A deal is possible because "a lot of the things that the U.S. wants, the Chinese want as well," Stein said. China, for example, is interested in buying U.S. soybeans, and aircraft and parts, and Chinese businesses are interested in investing in U.S. manufacturing -- which would help meet Trump's goal of reindustrialization. Bessent has also said the Stockholm talks could address Chinese purchases of Russian and Iranian oil.
Boston Globe
2 days ago
- Business
- Boston Globe
US-China tariff talks may provide clues on a possible Trump-Xi meeting
Analysts say the talks could set the stage for a possible meeting between President Other issues on the agenda include access of American businesses to the Chinese market; Chinese investment in the United States; components of fentanyl made in China that reach US consumers; Chinese purchases of Russian and Iranian oil; and American steps to limit exports of Western technology — like chips that help power artificial intelligence systems. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up The talks ended for the day after nearly five hours on Monday, and were set to reconvene on Tuesday morning. Advertisement Wendy Cutler, a former US trade negotiator and now vice president at the Asia Society Policy Institute, said that Trump's team would face challenges from 'a large and confident partner that is more than willing to retaliate against US interests.' Rollover of tariff rates 'should be the easy part,' she said, warning that Beijing has learned lessons since the first Trump administration and 'will not buy into a one-sided deal this time around.' Advertisement 'Beijing is more prepared and will insist on movement on US tech export controls at a minimum — a difficult ask for Washington,' she said, adding that many conversations will take place in the lead-up to any Xi-Trump summit. 'Success is far from guaranteed,' Cutler said. 'There are numerous trip wires that can throw a wrench in this preparatory process.' The US-China trade talks are the third this year, nearly four months after Trump upended global trade with his The Stockholm meeting, following similar talks in Geneva and London, is set to extend a 90-day pause on those tariffs. During the hiatus, US tariffs have been lowered to 30 percent on Chinese goods, and China set a 10 percent tariff on US products. The Trump administration, which just completed a China's Commerce Ministry said last week that the 'consultations' would raise shared concerns through the principles of 'mutual respect, peaceful coexistence and win-win cooperation.' The talks with Beijing are part of a flurry of US trade negotiations set off by Trump's arm-twisting 'Liberation Day' tariffs against Without an extension by Aug. 12, the tit-for-tat US-China tariffs could snap back to the triple-digit levels seen before the 90-day pause reached in Geneva. Many other countries — including some developing ones that depend on exports to the United States — face a deadline of Friday, as the Trump administration has said that letters will go out beforehand with set rates. Advertisement Critics say Trump's tariffs penalize Americans by forcing US importers to shoulder the costs or pass them on to consumers through higher prices. On Friday, Trump told reporters that 'we have the confines of a deal with China' — just two days after Bessent told MSNBC that a 'status quo' had been reached between the two sides. While the Chinese side has offered little guidance about the specifics of its aims in Stockholm, Bessent has suggested that the situation has stabilized to the point that China and the United States can start looking toward longer-term balance between their economies. For years, since China vaulted into the global trading system about two decades ago, the United States has sought to press leaders in Beijing to encourage more consumption in China and wrest greater market access to foreign-made — including American — goods. Other sticking points in the relationship include overcapacity in China — by far the world's largest manufacturer — and concerns about whether Beijing is doing enough to control chemicals used to make fentanyl, analysts say. In Stockholm, the Chinese will likely demand the removal of a Experts say long-term progress in the US-China trade relationship will hinge on structural changes. Those include increased manufacturing in the United States, which is part of Trump's ambition. On the Chinese side, that could involve a reduction of excess Chinese production in many industries, including electric vehicles and steel, and increased Chinese consumer spending to ease imbalances in China's export-driven economy. Advertisement Sean Stein, president of the US-China Business Council, said the the talks in Stockholm offer an opportunity for the two governments to address structural reform issues. Businesses will watch for clues about a possible Trump-Xi summit, because any real deal will depend on a meeting between the pair, he said. A deal is possible because 'a lot of the things that the US wants, the Chinese want as well,' Stein said. China, for example, is interested in buying US soybeans, and aircraft and parts, and Chinese businesses are interested in investing in US manufacturing — which would help meet Trump's goal of reindustrialization. Bessent has also said the Stockholm talks could address Chinese purchases of Russian and Iranian oil.
