US President Donald Trump’s fresh 25% tariffs on Indian goods took effect Wednesday, doubling the total duties to 50% after New Delhi stood firm on Russian oil imports. The hike, effective from 9:30 a.m., threatens $60.2B worth of Indian exports, with labour-heavy sectors like textiles, gems, jewellery, shrimp, carpets, and furniture facing shipment drops of up to 70%, putting millions of jobs at risk and clouding growth prospects.
00:00The additional 25% tariffs for India all set to kicking in.
00:04Donald Trump's tariff bomb is now dropping on India.
00:08India is locked and loaded to counter the tariffs.
00:11Modi government has given out an assurance we are standing with our farmers.
00:15Additional 25% tariffs kick in now.
00:19Donald Trump's tariff bomb dropped on India.
00:22India is locked and loaded to counter the tariffs.
00:25Modi government has given out an assurance that the government is standing with the farmers.
00:30Modi government, we are standing with our farmers.
00:37Just 24 hours ago, we heard Prime Minister Marendra Modi speaking about the fact that for the government, it is India first.
00:44Similarly, how Donald Trump has been speaking about America first.
00:48In fact, just a couple of hours ago, we did see a poster that was posted by the US President Donald Trump,
00:54in which he was sitting with an oil barrel, taking a dig at the oil that India has been buying.
00:59India has been buying from Russia.
01:01India has been buying from Russia.
01:31you know
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02:02very
02:03hopeful that we will
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02:07find a way to conclude a satisfactory
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02:10mutually beneficial free trade agreement with the united states
02:15early rather than late and that would certainly
02:19take us to the next step of the visit of president trump to india
02:24meeting the core leaders and I think really setting us back on track.
02:3050% tariff is a big number.
02:36The dollar volume and also it would imply back-end in India it will mean job losses in some sectors.
02:43However, India I think is taking a holistic view.
02:48One, the government and the industry itself is trying to diversify and open up new export markets, that's one.
02:56Also, the country itself, there is now a push to improve our own productivity,
03:02make our goods more competitive for global standards.
03:06So it will be a mix of steps taken externally by India and internally by India to face this hardship.
03:15But yes, some sacrifices will have to be made.
03:18I think it will maybe impact the business but in a very temporary manner.
03:23I think both countries are still in the negotiations, in the discussions to have a win-win deal in the bilateral agreements.
03:30And I am sure that both the governments will actually reach a very good fruitful agreement which is mutually beneficial for both.
03:38So maybe there is some temporary, you know, hiccup that will come.
03:43But I think I am sure both countries will reach to a win-win agreement.
03:47Tariffs are obstacles to free trade, wherever they are.
03:53Whether it's on the Indian side, whether it's on the European side, whether it's on the US side.
03:58So we would always be in favour of reducing tariffs to a minimum level.
04:03My colleague Karishma Sudani is now joining me on the story.
04:07Karishma, this is something which India has been very keenly looking at.
04:10On one side, we are looking at newer markets.
04:13On the other side, we are also looking at cushioning the blue.
04:17Well, right Aishwarya, you know, Commerce Minister Piyush Goyal has been reiterating.
04:22In fact, at our Business Today Summit also, he had shared that India never bows down and we will continue to diversify.
04:31We are looking at new markets.
04:33We have a lot of FTAs that have been already concluded and many that could likely be concluded soon.
04:40The one with the UK that was recently done will be implemented soon by the end of this financial year.
04:47The one with the EU that's just about to begin.
04:50The idea is that India wants to diversify its global supply chain and not just be dependent on one or two countries.
04:57While the tariff situation has definitely made it difficult for us with our domestic industries per se,
05:04the couple of ones that export majorly to the US.
05:07We are still hopeful of the fact that renegotiations and bilateral trade agreement by October or November could actually solve this.
05:18Government is also hopeful and they've shared this on record.
05:23In fact, Minister of External Affairs S Jai Shankar has also said this, that we are in conversation with the US and it is not completely out of the back.
05:33But these things could take time because we've been firm on the fact that we are not going to give up our sensitive sectors,
05:40which Prime Minister Modi has very strongly and vocally mentioned about.
05:46Right, Karishma, you know, we have seen and you also rightly pointed out that we have the Commerce Minister Piyush Koyal on one side,
05:54Prime Minister Narendra Modi speaking about the fact that India will not bow down.
05:58And it's fair also, Karishma, because on one side the US is saying that they want to keep America first,
06:04then India also has the right to have India first.
06:07The priority should be India and not some other market.
06:10On a global play, each country wants to, of course, take the first spot.
06:17China has been also echoing the same four years.
06:20It's just that it stopped echoing it loud and clear now because it's more concentrated on now developing internally.
06:29While the US has been since since the reelection of Donald Trump in his last recent mandate,
06:37he's been echoing of the fact that he is going to play around with the tariff situation to ensure that America deserves the right amount of taxation tariffs and not the abundant one that they've been receiving.
06:55But India has always taken a very clear stance.
06:59We've always said that we are up for talking. We're up for negotiation.
07:02We are one of the important countries emerging on the developing front.
07:07And we've been talking about how after China, India has the capability and capacity to, of course, escalate towards the global supply chain market.
07:19We have never said no. We are just willing to do the negotiation on a fair and balanced way out and not give into a lopsided deal.
07:28Krishna, please stay on with me. Pranay Upadhyay from the IT Global is also joining us on the story.
07:33Pranay, we are now seeing shadow boxing of sorts taking place between India and the United States of America.
07:38Donald Trump, teasing also India in a way, posted just a couple of hours ago that picture sitting with the oil barrel pointing towards India-Russia oil deal.
07:48President Donald Trump has made it a point that he is accusing India for fueling the Russian oil industry and also fueling the Russian war machine in the Russia-Ukraine conflict.
08:04But, Aishwarya, we know where the reality lies. President Donald Trump has made it at his ego point that he wants to punish India because India has refused to succumb to U.S. pressure and especially to counter before President Donald Trump and his dictates.
08:21But the reality lies somewhere else. See the figures. Because figures speak loud and clear that the Russian bilateral trade with the United States have gone up by 20% since President Donald Trump assumed office.
08:33Also, this also remains a fact that China is the biggest importer of Russian oil, but President Donald Trump and his administration is not punishing China.
08:43Rather, they are offering relief to China by the tariff cruise of 90 days and extended 90 days.
08:53And besides that, recently President Donald Trump himself has said that he is ready to offer 6 lakh Chinese student positions in U.S. universities.
09:04So, clearly, this clearly shows that President Donald Trump has succumbed to the Chinese pressure.
09:09He has engaged with China in a trade war during his previous tenure, but now he has realized that this is not easy and he himself has admitted it.
09:17So, clearly, President Donald Trump, you know, whatever damage he has caused and his policies have caused in India-U.S. ties, these ties may improve eventually.
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