00:00All right, big story that we're breaking at this hour, a big announcement that has been come,
00:09that is coming from President Donald Trump on 25% rate tariff on India.
00:15Finally, that announcement has been made.
00:17Donald Trump has spoken about it and I quote him,
00:19remember while India is our friend, we have over the years done relatively little business with them
00:25because their tariffs are far too high, among the highest in the world
00:29and they have the most strenuous and obnoxious non-monetary trade barriers of any country.
00:35Also, they've always bought a vast majority of their military equipment from Russia
00:39and Russia's largest buyer of energy, along with China.
00:43At a time when everyone wants Russia to stop the killing in Ukraine, all things not good.
00:49India will therefore be paying a tariff of 25%.
00:52That's the penalty for the above starting on the 1st of August.
00:56Thank you for your attention to this matter.
00:59Make America great again.
01:01That's what Donald Trump has said.
01:03Doing what was expected, however, extremely disappointing for India.
01:0825% tariff in India, something that India had been working very hard to negotiate for days and weeks, months together actually.
01:16But the trade deal has now been, in fact, it's been signed along dotted lines with this announcement.
01:21Coming in a 25% tariff, also taking a jibe at India for doing business with Russia.
01:27I'll be going across to my colleagues from India Today Global in a moment from now.
01:32But for the moment, first to Karishma Asudhani, my colleague from Business Today for the very latest on that.
01:37Karishma, disappointing but expected, isn't it?
01:40Absolutely disappointing.
01:42Absolutely disappointing.
01:44In fact, this is not something that you're expecting, especially after the UK FDA that was recently signed,
01:50where India's Commerce Minister has been reiterating that a fine example was set,
01:57a foundational example was set for the U.S. to negotiate with India.
02:02But it looks like India's substance of not compromising on its sensitive sectors of agri, dairy and genetically modified crops
02:14has led this 25% tariff on India.
02:18This is not going to go a long way.
02:20In fact, I was speaking to an economist today and he predicted that this sentiment was going to pull the APAC market down for a while
02:28because after China, if there was something that the world was looking forward to in terms of a transitional corridor
02:38for supply of goods to the U.S. and from the U.S. to APAC, then that was India.
02:43But with 25% tariff, this is not going to go a long way.
02:47But I also want to give a parallel perspective to this and this is to check our export baskets to the U.S.
02:55If we look at our export baskets to the U.S., then people pharmaceutical aside,
03:00we are not much in terms of exporting and that could save up from some kind of implications that are about to come.
03:08But if Donald Trump goes ahead and puts some kind of tariff on pharmaceuticals,
03:13then that will be something to look forward to because that will put us in a major trade deficit
03:19going to the fact that our pharma exports are maximum to the U.S.
03:23That's right. I'm going to talk to you about that and what's the kind of impact that's going to have on products
03:27that is being bought and sold.
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