Latest news with #MattWhitaker
Yahoo
5 days ago
- Business
- Yahoo
Trump's Tariff Threat Targets China and India -- But Could Blow Up U.S. Strategy Instead
President Donald Trump just tossed another curveball into the global trade arena and this time, it's aimed at anyone still doing business with Russia. Trump floated the idea of slapping 100% tariffs on Russia unless a peace deal is reached within 50 days. But that's not where the real pressure lies. According to the U.S. ambassador to NATO, Matt Whitaker, the move would actually hit countries like India and China buying Russian oil. Markets didn't blink suggesting most investors aren't pricing it in just yet. But trade analysts caution that these secondary tariffs could be a nightmare to enforce and risk backfiring, especially as China and India double down on their energy ties with Moscow. Warning! GuruFocus has detected 4 Warning Signs with NVDA. India, which has steadily increased its imports of discounted Russian crude since 2022, may be walking a tightrope. Officials in New Delhi reportedly believe the threat is more about pressuring China, but they're not ruling out collateral damage. With a U.S.-India trade deal on the table, New Delhi is growing increasingly wary of what it sees as Washington's erratic behavior. Prime Minister Modi's team, while still engaging, may push back harder if these threats escalate. Meanwhile, India's External Affairs Minister just wrapped up a high-profile meeting with Xi Jinping in Beijing a first in over five years signaling a potential reset in Sino-Indian ties at a time when both nations are frustrated with U.S. unpredictability. What makes this even more intriguing is the broader backdrop. The U.S. is simultaneously softening its stance with China greenlighting Nvidia (NASDAQ:NVDA) to resume sales of AI chips and signaling a possible TrumpXi summit later this year. That could be short-lived. Any disruption to China's Russian oil supply might reignite trade tensions just as relations were stabilizing. As energy security becomes the new geopolitical fault line, Trump's tariff threat may end up tightening the BRICS alliance rather than isolating Moscow. For investors, this may be less about oil prices and more about watching how quickly emerging economies realign in response. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Free Malaysia Today
5 days ago
- Business
- Free Malaysia Today
Trump's oil tariffs on Putin may risk harming ties with Modi, Xi
India has become a major importer of Russian oil since the invasion of Ukraine in early 2022, and China's imports have climbed over the same period. (Bloomberg pic) WASHINGTON : US President Donald Trump's latest threat of 100% tariffs on Russia would risk complicating relations with two nations crucial to his economic and strategic goals: China and India. Trump yesterday threatened tariffs of about 100% on Russia unless it reached a peace deal with Ukraine in the next 50 days, saying the levies would come in the form of 'secondary tariffs'. Matt Whitaker, the US ambassador to Nato, later said the planned action effectively represents secondary sanctions on countries buying oil from Russia. 'It's about tariffs on countries like India and China that are buying their oil,' he told reporters. Global markets – increasingly skeptical of Trump's near-daily tariff threats – largely shrugged off the news, suggesting there's little concern around any potential impact on crude flows. Trade analysts said the proposed levies would be difficult to police and, if implemented, could well backfire on the US. 'It remains unclear how exactly you would do this, and how China or anyone would certify that they're meeting the US requirement,' said Deborah Elms, head of trade policy at the Hinrich Foundation in Singapore. 'It's going to add more fuel to the fire of why these countries are skeptical of receiving a deal from Trump,' Elms said. Trump's latest threat comes at a crucial time in negotiations with both Asian nations. India is closing in on an agreement that would see 20% so-called reciprocal levies on the South Asian nation before a final deal is reached in the fall. Prime Minister Narendra Modi's government has struck a more defiant stance with the US in recent weeks as frustration with Trump has grown. US ties with China, meanwhile, appear on the upswing after the world's two largest economies reached a trade truce in May. Secretary of state Marco Rubio last week said a meeting between Trump and President Xi Jinping was likely for later this year. Yesterday, Nvidia Corp said the US would allow the resumption of sales of its H20 AI chip to China – the biggest sign yet that the White House is easing export controls on Beijing in return for rare-earth minerals needed to make a range of high-tech products. 'Despite the temporary truce in the trade war between China and the US, there's still a lot uncertainties on other fronts,' said Zhu Feng, executive dean of Nanjing University's School of International Studies. 'A secondary tariff will bring even more chaos and China will surely respond forcefully.' India became a major importer of Russian oil since the invasion of Ukraine in early 2022, and China's imports have also climbed over the same period. Washington policymakers view those stepped-up oil purchases as a form of tacit support for Russia that helps buoy the nation's economy and weakens the impact of sanctions. 'Any major threat to China's energy security could create new frictions in the fragile trade truce between the world's top two economies,' said William Yang, International Crisis Group's senior analyst for Northeast Asia. Secondary levies that threaten India's access to cheap oil could also further erode ties between Trump and Modi. 'Whatever little trust and goodwill is left in the US president will soon get dissipated if the US keeps pushing its arbitrary actions related to tariffs,' said Abhijit Das, international trade policy expert in Delhi. 'As a part of its trade talks, India should demand that the US avoid such arbitrary tariffs,' Das said. Trump's latest salvo comes as countries deepen their trade and diplomatic relations in the face of US policy volatility. Russia's foreign minister Sergei Lavrov was in Beijing this week, where he met China's top diplomat, Wang Yi, and was also received by Xi, who said the two nations should deepen 'comprehensive strategic cooperation'. India's external affairs minister Subrahmanyam Jaishankar held talks with his Chinese counterpart yesterday during his first visit in more than five years, as the Asian neighbours strive to repair relations strained by the deadly 2020 border clashes. Jaishankar met with Xi today. 'All these tariff threats are indeed working to bring the BRICS together,' said Amitendu Palit, senior research fellow and research lead on trade and economics at the Institute of South Asian Studies.
Yahoo
5 days ago
- Business
- Yahoo
Trump's Russia Tariff Threat Risks Harming Ties With Modi, Xi
(Bloomberg) -- US President Donald Trump's latest threat of 100% tariffs on Russia would risk complicating relations with two nations crucial to his economic and strategic goals: China and India. Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests LA Homelessness Drops for Second Year Trump on Monday threatened tariffs of about 100% on Russia unless it reached a peace deal with Ukraine in the next 50 days, saying the levies would come in the form of 'secondary tariffs.' Matt Whitaker, the US ambassador to NATO, later said the planned action effectively represents secondary sanctions on countries buying oil from Russia. 'It's about tariffs on countries like India and China that are buying their oil,' he told reporters. Global markets — increasingly skeptical of Trump's near-daily tariff threats — largely shrugged off the news, suggesting there's little concern around any potential impact to crude flows. Trade analysts said the proposed levies would be difficult to police and, if implemented, could well backfire on the US. 'It remains unclear how exactly you would do this, and how China or anyone would certify that they're meeting the US requirement,' said Deborah Elms, head of trade policy at the Hinrich Foundation in Singapore. 'It's going to add more fuel to the fire of why these countries are skeptical of receiving a deal from Trump.' Trump's latest threat comes at a crucial time in negotiations with both Asian nations. India is closing in on an agreement that would see 20% so-called reciprocal levies on the South Asian nation before a final deal is reached in the fall. Prime Minister Narendra Modi's government has struck a more defiant stance with the US in recent weeks as frustration with Trump has grown. Officials in New Delhi said Tuesday it's unclear whether Trump will follow through with his threat or how it will be implemented if he did. Penalizing entities that trade with or buy Russian crude will be difficult to implement and may have unintended consequences, they said, asking not to be identified because the discussions are private. New Delhi sees the tariff threat as mostly targeted toward China, a major buyer of Russian energy, rather than India, the officials said. They view India's ongoing trade negotiations and close ties with the US as helping to shelter the country from any punitive measures, they said. India's Ministry of External Affairs didn't respond to an email seeking further information. Xi-Trump Meeting US ties with China, meanwhile, appear on the upswing after the world's two largest economies reached a trade truce in May. Secretary of State Marco Rubio last week said a meeting between Trump and President Xi Jinping was likely for later this year. And on Monday, Nvidia Corp. said the US would allow the resumption of sales of its H20 AI chip to China — the biggest sign yet that the White House is easing export controls on Beijing in return for rare-earth minerals needed to make a range of high-tech products. 'Despite the temporary truce in the trade war between China and the US, there's still a lot uncertainties on other fronts,' said Zhu Feng, executive dean of Nanjing University's School of International Studies. 'A secondary tariff will bring even more chaos and China will surely respond forcefully.' India became a major importer of Russian oil since the invasion of Ukraine in early 2022, and China's imports have also climbed over the same period. Washington policymakers view those stepped-up oil purchases as a form of tacit support for Russia that helps buoy the nation's economy and weakens the impact of sanctions. 'Any major threat to China's energy security could create new frictions in the fragile trade truce between the world's top two economies,' said William Yang, International Crisis Group's senior analyst for Northeast Asia. Secondary levies that threaten India's access to cheap oil could also further erode ties between Trump and Modi. 'Whatever little trust and goodwill is left in the US president will soon get dissipated if the US keeps pushing its arbitrary actions related to tariffs,' said Abhijit Das, international trade policy expert in Delhi. As a part of its trade talks, India should demand that the US avoid such arbitrary tariffs, Das said. Trump's latest salvo come as countries deepen their trade and diplomatic relations in the face of US policy volatility. Russia's Foreign Minister Sergei Lavrov was in Beijing this week, where he met China's top diplomat, Wang Yi, and was also received by Xi, who said the two nations should deepen 'comprehensive strategic cooperation.' India's External Affairs Minister Subrahmanyam Jaishankar held talks with his Chinese counterpart on Monday during his first visit in more than five years, as the Asian neighbors strive to repair relations strained by the deadly 2020 border clashes. Jaishankar met with Xi on Tuesday. 'All these tariff threats are indeed working to bring the BRICS together,' said Amitendu Palit, senior research fellow and research lead on trade and economics at the Institute of South Asian Studies. --With assistance from Jing Li, Sarah Chen, Serene Cheong, Shruti Srivastava and Ruchi Bhatia. (Updates with response from India.) Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot The New Third Rail in Silicon Valley: Investing in Chinese AI 'Our Goal Is to Get Their Money': Inside a Firm Charged With Scamming Writers for Millions 'The Turbulence Is Brutal': Four Shark Tank Businesses on Tariffs Will Trade War Make South India the Next Manufacturing Hub? ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
Oil Holds Decline as Traders Assess Outlook for Russian Supply
(Bloomberg) -- Oil held a drop — after slumping by more than 2% on Monday — as US President Donald Trump's latest plan to pressure Russia refrained from immediate new measures aimed at hindering Moscow's energy exports. Why Did Cars Get So Hard to See Out Of? How German Cities Are Rethinking Women's Safety — With Taxis Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests LA Homelessness Drops for Second Year US benchmark West Texas Intermediate traded near $67 a barrel, while Brent settled near $69 in the previous session. Trump boosted military support for Ukraine to resist Moscow's invasion, and threatened to impose 100% tariffs if the hostilities did not end with a deal in 50 days. The planned action effectively represents secondary sanctions on countries buying oil from Russia, according to Matt Whitaker, the US ambassador to NATO, citing India and China. Oil has lost about 7% this year, hurt by the fallout from Trump's trade war, signs of demand challenges in top importer China, and moves by OPEC+ to relax supply curbs. Taken together, the headwinds have fanned concern output may run ahead of consumption this half, creating a glut. 'Our Goal Is to Get Their Money': Inside a Firm Charged With Scamming Writers for Millions Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot 'The Turbulence Is Brutal': Four Shark Tank Businesses on Tariffs Trump's Cuts Are Making Federal Data Disappear Trade War? No Problem—If You Run a Trade School ©2025 Bloomberg L.P.
Bloomberg
5 days ago
- Business
- Bloomberg
Oil Holds Decline as Traders Assess Outlook for Russian Supply
Oil held a drop — after slumping by more than 2% on Monday — as US President Donald Trump's latest plan to pressure Russia refrained from immediate new measures aimed at hindering Moscow's energy exports. US benchmark West Texas Intermediate traded near $67 a barrel, while Brent settled near $69 in the previous session. Trump boosted military support for Ukraine to resist Moscow's invasion, and threatened to impose 100% tariffs if the hostilities did not end with a deal in 50 days. The planned action effectively represents secondary sanctions on countries buying oil from Russia, according to Matt Whitaker, the US ambassador to NATO, citing India and China.
