Donald Trump Tariffs News Highlights: India refuses to compromise on farmers’ interests; trade talks to resume on Aug 25

Prime Minister Narendra Modi on Saturday called on citizens to adopt the spirit of "Swadeshi" and support locally-made products, stressing that true service to the nation lies in promoting indigenous goods, especially amid "global economic uncertainties".
Addressing a public meeting in his parliamentary constituency Varanasi, Modi said, "As we talk about economic progress, I want to draw your attention to the current global scenario.

"The world economy is facing instability and uncertainty. In such times, countries are focusing solely on their own interests. India, too, is on the path to becoming the world's third-largest economy and must remain alert to its own economic priorities."

The prime minister's renewed push for 'Swadeshi' (indigenous) comes amid the US announcing tariffs on exports from about 70 nations, including India. According to the White House order, India now faces tariffs of 25 per cent for its exports to the US.

Emphasising that farmers, small industries and employment for youths are the top-most priorities for the government, Modi said, "The government is doing everything possible in this direction. But as citizens, we too have responsibilities."

Calling for a national movement to support local products, the prime minister said, "This is not just about Modi saying it, every Indian should say this -- if we want India to become the third-largest economy, every political party and every leader, keeping aside their hesitations, must work in the nation's interest and awaken the spirit of Swadeshi among the people."

He also urged people to be conscious consumers, saying, "Whatever we buy, we should ask ourselves -- has an Indian toiled to make this? If it has been made by the sweat of our people, with their skills, that product is Swadeshi for us. We must adopt the mantra of 'Vocal for Local'."

Making a special appeal to traders and shopkeepers, the prime minister said, "At a time when the world is going through uncertainty, let us take a pledge to sell only Swadeshi goods from our shops and markets. Promoting made in India goods will be the truest service to the country."

With the festival and wedding seasons approaching, the prime minister encouraged people to ensure that all new purchases are made in India. (PTI)

Global markets reeled Friday after President Donald Trump's tariffs barrage against nearly all US trading partners as governments looked down the barrel of a seven-day deadline before higher duties take effect.
Trump announced late Thursday that dozens of economies, including the European Union, will face new tariff rates of between 10 and 41 percent.

However, implementation will be on August 7 rather than Friday as previously announced, the White House said. This gives governments a window to rush to strike deals with Washington setting more favorable conditions.

Neighboring Canada, one of the biggest US trade partners, was hit with 35 percent levies, up from 25 percent, effective Friday -- but with wide-ranging, current exemptions remaining in place.

The tariffs are a demonstration of raw economic power that Trump sees putting US exporters in a stronger position, while encouraging domestic manufacturing by keeping out foreign imports.

But the muscular approach has raised fears of inflation and other economic fallout in the world's biggest economy.

Stock markets in Hong Kong, London and New York slumped as they digested the turmoil, while weak US employment data added to worries.

Trump's actions come as debate rages over how best to steer the US economy, with the Federal Reserve this week deciding to keep interest rates unchanged, despite massive political pressure from the White House to cut.

Data Friday showed US job growth missing expectations for July, while unemployment ticked up to 4.2 percent from 4.1 percent.

On Wall Street, the S&P 500 dropped 1.6 percent, while the Nasdaq tumbled 2.2 percent. (AFP)

Indian consignments shipped before August 7 and reaching US ports by October 5 will be exempted from the additional tariffs (except items like steel and aluminium, which face 50 per cent), offering some temporary relief to exporters.

However, exporters particularly in sectors like textiles, footwear, and chemicals, are urging the government for support measures to help offset potential order losses.

Commerce and Industry Minister Piyush Goyal is expected to meet with exporters in the coming days for consultations.

After facing a 25% tariff rate from US, India maintains its stance on making any compromise on agricultural and dairy products as trade talks with the US resume on August 25.

The government made it clear that farm goods, dairy, genetically modified food, beef and animal feed with meat are completely off the table.

"We are engaged with American officials and securing our national interest is our primary objective. The government is not going to come under pressure on areas that concern farmers and small businesses," a government official said.

Russian oil faced no direct sanctions but operated under G7/EU price-cap regulations to maintain global supply whilst limiting revenue. India's approach as a responsible energy consumer helped maintain market stability and liquidity, with all purchases conforming to international standards.

"Had India not absorbed discounted Russian crude combined with OPEC+ production cuts of 5.86 mb/d, global oil prices could have surged well beyond the March 2022 peak of US$137/bbl, intensifying inflationary pressures worldwide," sources told ANI.

It's worth noting that neither the US nor EU has sanctioned Russian oil. Indian OMCs have avoided purchasing US-sanctioned Iranian and Venezuelan crude whilst adhering to the US-recommended $60 price cap for Russian oil. The EU has proposed a new price cap of $47.6 for Russian crude, scheduled for implementation from September.

Is India still buying Russian oil? According to an ANI report quoting sources, Indian oil refiners maintain their procurement of oil from Russian vendors. Their decisions on supply are based on multiple factors including pricing, crude quality, storage levels, transportation considerations and other commercial aspects.

Sources explained that Russia holds the position of second-largest crude oil producer globally, with production of about 9.5 mb/d, representing approximately 10% of worldwide demand. As the second-largest exporter, Russia ships roughly 4.5 mb/d of crude and 2.3 mb/d of refined products. Concerns about Russian oil's potential market exclusion and subsequent disruption of established trade patterns caused dated Brent crude prices to reach US $137 per barrel in March 2022.

"In this challenging environment, India, as the world's third-largest energy consumer with 85% crude oil import dependence, strategically adapted its sourcing to secure affordable energy while fully adhering to international norms," sources elaborated.

Previously, US President Donald Trump stated on Friday that India might stop purchasing Russian oil, describing it as "a good step" if verified, whilst India has maintained its sovereign authority to implement energy policies aligned with national interests.

Recent economic indicators present concerning signals about the American economy, challenging President Donald Trump's vision of unprecedented prosperity. The latest data reveals diminishing employment figures, rising inflation rates, and a noticeable deceleration in economic expansion compared to the previous year.

As Trump passes the six-month mark of his presidency, his signature policies, including elevated tariffs and the revised tax and spending legislation, have substantially altered the nation's commerce, industrial production, energy sector and taxation framework. Whilst he readily embraces positive outcomes, he appears poised to deflect responsibility should the economy face difficulties.

The White House shared an image on Friday showing the US president holding a phone to his ear, accompanied by the caption: "Making calls. Making deals. MAKING AMERICA GREAT AGAIN!"

The president's supporters applaud each trade agreement he announces as evidence of his bargaining skills, particularly given his firm belief that tariffs represent American economic strength.

The recent series of rate adjustments followed a similar pattern.

The former property developer imposed new tariffs on numerous US trading partners on Thursday by signing with a black pen.

The implementation date has been set for August 7, rather than the previously announced August 1 deadline.

Trump said on Saturday that he received information about India stopping Russian oil imports, praising it as a positive development. However, the ministry of external affairs had previously clarified that the nation's energy procurement decisions were based on market dynamics and domestic requirements, additionally stating it was unaware of any reports suggesting Indian oil companies had ceased Russian imports.

"I understand that India is no longer going to be buying oil from Russia. That's what I heard, I don't know if that's right or not. That is a good step. We will see what happens," Trump said.

As tensions rise between India and the US due to President Trump's aggressive trade policies, the Indian government maintains optimism about bilateral relations. The Ministry of External Affairs stated on Friday that the partnership has successfully navigated various obstacles, expressing confidence in continued positive engagement.

"This partnership has weathered several transitions and challenges. We remain focused on the substantive agenda that our two countries have committed to and are confident that the relationship will continue to move forward," stated MEA spokesperson Randhir Jaiswal.

Additionally, the government emphasised its strong relationship with Russia, describing the connection as consistent and well-established over time.

Trump declared 25% tariffs on Indian imports this week, whilst also warning of sanctions regarding India's Russian oil and defence purchases.

Regarding Russian oil imports, the Indian government maintained its stance that procurement decisions are based on market availability and global conditions to fulfil its energy requirements.

Speaking about defence acquisitions, Ministry of External Affairs spokesperson Randhir Jaiswal clarified that India's defence procurement choices are based exclusively on national security priorities and strategic considerations.

India has maintained a measured response to Trump's recurring provocations, choosing to concentrate on ongoing trade negotiations aimed at securing a bilateral agreement. The government believes this approach could address the President's apprehensions about the trade imbalance between the United States and India.