Pope marks 50th anniversary of Cold War-era deal on security, human rights
At the end of his general audience, history's first American pope said that August 1 marks the anniversary of the conclusion of the 35-nation summit in Finland that resulted in the Helsinki Final Act, which years later helped give birth to the Organisation for Security and Cooperation in Europe.
Renewing his appeal for peace in the world, Leo said, "Today, more than ever, it is imperative to cherish the spirit of Helsinki, persevere in dialogue, strengthen cooperation and make diplomacy the preferred way to prevent and resolve conflicts."
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Indian Express
21 minutes ago
- Indian Express
Trump's 25% tariff on India is a negative-sum game. There is no easy way out
Written by Arya Roy Bardhan Donald Trump has slapped a 25 per cent tariff on Indian imports into the United States. He posted on social media that the US has never been able to do much business with India, given the latter's high tariff structure and other non-monetary trade barriers. Moreover, India's military and energy purchases from Russia have led the US administration to impose additional penalties (to be decided later). While the Indian government studies the implications of this move, not much analysis is needed to understand that this is a negative-sum game. Are tariffs harmful? Tariffs are not just a tax on imports – they are effectively a consumption tax. Just as it narrows the profit margins for Indian exporters, it also drives up the prices of Indian imports in the US. In 2024, the US imported goods worth $87.4 billion from India, resulting in a trade deficit of $45.7 billion, accounting for nearly 2 per cent of its entire deficit. While the US imports a little over 3 per cent of all its goods and services from India, nearly a fifth of Indian exports are shipped to the US market. Although both nations will suffer from the fallout, India finds itself in a far more precarious situation given the trade structure. Before the tariff wars, India's effective tariff rate on US imports was around 12 per cent, while India faced 2.2 per cent tariffs. The over ten-fold jump in tariffs will not only hurt Indian exporters but also risk trade diversion. The US might simply import more from other countries: American importers of textiles or seafood can turn to suppliers in Vietnam, Indonesia, Ecuador or others that face less harsh tariffs, crowding out Indian exporters. The shocks are not limited to trade: Currency markets have already reacted to the tariff announcement. The Rupee has weakened as a response to Trump's announcement. While a depreciated rupee will make Indian goods slightly cheaper globally, the exchange rate adjustment cannot compensate for a 25 per cent price hike in the US. On the flipside, a weaker rupee will raise India's import costs, pushing up domestic inflation. Is 25 per cent a lot? The 25 per cent tariff can wipe out India's comparative advantage in labour-intensive goods overnight. If exports to the US remain at similar levels as last year, Indian importers will be looking at an indirect $22 billion tariff bill – over 0.5 per cent of India's GDP. Whether it be textiles, pharmaceuticals or gems and jewellery, the tariff is high enough to eat away the entire margin of producers. These sectors can be severely hit, leading to output and employment losses. The shocks will not be limited to the exporting sectors but will be transmitted to the entire economy through value chain linkages. Recently, India became the largest exporter of smartphones to the US, overtaking China. This was driven primarily by Apple's efforts to gear up smartphone production in India during the US-China rift. Smartphone production and exports have become large in India, with its share in total electronics rising from 9.9 per cent to 44.4 per cent over the last decade. The Performance Linked Incentive (PLI) scheme attracted foreign firms, which led to greater production, exports and employment. In a way, the PLI subsidised Apple's production in India, with the intention of buttressing an infant industry to a globally competitive stage. Now, Apple is being threatened to cut back production in India and come back to the US, which could potentially negate all benefits and leave India's state expenditure worthless. However, it might be difficult for the US to turn away from Indian assembly plants due to its market share and the similar tariff rates faced by competitors. It would also shoot up American iPhone costs, which can turn into a serious political misstep. Not just smartphones but all the leading export sectors can lose the edge they gained via the PLI – the tariff bill is equivalent to the Rs 1.97 lakh crore PLI budget. As a result of the tariff and penalty package, if half of US orders disappear, Indian goods exports will fall by $ 40 billion, shaving 1 per cent off India's GDP in 2025-26. To minimise the damage, India must respond with measured negotiation, market diversification, enhanced competitiveness, and safeguarding of affected sectors. If the tariffs linger, the shocks could accelerate reforms and a pivot to new markets, ultimately making India more self-reliant and broad-based. However, the damage during the transition is too large to be left to the markets. No easy way out India can soften the blow of Trump's 25 per cent tariff by acting on two fronts at once. First, it can offer quick, temporary tax refunds or cheaper loans to the exporters that sell most to America, while using its 'Make in India' plans to push those same industries into higher-value goods and advanced technology. Second, it should quickly seal new trade pacts with the EU, Gulf and other markets so that exporters are not tied to a single buyer. Legal recourse should be considered by filing a case at the WTO. For its part, the US could gain by striking a fair trade deal, much like the UK-India agreement, that lowers duties, protects jobs, and keeps supply chains steady on both sides. Only an appropriate agreement can turn this into a positive-sum game. Bardhan is a Junior Fellow at the Observer Research Foundation
The Print
21 minutes ago
- The Print
Trump's tariff move undermines mutually beneficial India-US relationship, says Suresh Prabhu
I recall, during Trump's first term, when I served as India's Minister of Commerce and Industry, I negotiated with former Commerce Secretary Wilbur Ross and former US Trade Representative Robert Lighthizer about trade-related issues. We also engaged with US agriculture and dairy industry representatives to explain that loosening of regulations could severely impact our social sector and sensitive religious practices. These examples highlight the depth of India-US collaboration and its far-reaching benefits. While we often celebrate these ties, we were recently hit with a severe jolt—President Donald Trump's unilateral announcement of tariffs on Indian goods. This comes despite months of trade negotiations and a shared goal to deepen economic ties. India's relationship with the United States is multi-faceted. Several top Fortune 500 companies in the US—which make it an enviable economy—are led by people of Indian origin. Ivy League universities, which contribute to America's reputation as the knowledge power of the world, have professors, deans, and even presidents of Indian origin. Indian-origin scientists have won Nobel Prizes, and the US medical system—one of the world's best—benefits from Indian-origin doctors, pharmaceutical researchers, and innovators in drug development. Even NASA, which recently partnered with ISRO, has Indian-origin scientists playing key roles. Even then, many US industry leaders across sectors strongly supported closer trade ties with India. That's why this sudden tariff decision is disappointing. But the world needs diplomacy, statesmanship, and mechanisms for cooperation—especially between two countries that consider themselves natural allies. India and the US share democratic values, respect for freedom, and a robust people-to-people connection. Indian professionals aren't stealing jobs in the US—they're creating them. In fact, a study by a reputed US organisation shows how Indian investments have created thousands of jobs in America. India isn't a threat India is not the top contributor to the US trade deficit. Trade deficits fluctuate like blood pressure—they go up and down. As the world's third-largest aviation market, India will need to buy a vast number of aircraft and related infrastructure. The US is an obvious supplier. With its transformation into an energy exporter, the US also has opportunities to supply LNG to India—provided we address transportation challenges, since no pipeline exists between the two. India also contributes to US innovation. Many American corporates grow by acquiring smaller startups—often born in garages. India, with the third-largest startup ecosystem, can be a fertile source of innovation and tech ideas that fuel US corporate growth. Our first Green Revolution was also a product of India-US collaboration. In the 1960s, an agreement between US Agriculture Secretary Orville Freeman and India's Chidambaram Subramaniam, along with M.S. Swaminathan, helped India shift from being a food importer to an exporter. We owe much of that success to our partnership with the US. Geopolitically, Asia is emerging as the key theatre of global politics. India is projected to become the second-largest economy in Asia by 2030 and has a growing presence in Africa. We've always respected the territorial integrity of other nations and pose no strategic threat. US investments in India won't just strengthen our economy—they'll boost America's too. As global norms shift, India can play a key role in shaping a fairer order—alongside the US. Also read: India must not retaliate to Trump's tariff tactic. Secure interim deal, fix internal issues Benefits of cooperation over trade friction Trade should not be the sole lens through which we assess this precious bilateral relationship. For many Indians, the US represents aspiration, freedom, and opportunity. People-to-people ties remain the foundation of this bond. It's time to return to the negotiating table and think calmly and clearly about the benefits of cooperation. Every bilateral relationship must weigh the cost of confrontation against the benefits of partnership—and in this case, the latter clearly outweighs the former. The current trade friction stems from India's trade surplus, but this imbalance is likely to ease. India's economy is growing rapidly, with soaring demands in sectors like aviation, where US-India complementarities are obvious. President Trump and Prime Minister Modi share a strong personal rapport. Their respective campaigns—Make America Great Again and Make in India—are complementary. Working together is the best way for both countries to uphold democratic values worldwide. However, ground realities must not be ignored. Most Indian farmers are marginal, with landholdings of less than a hectare. India's largest dairy brand, Amul, sources milk from women farmers with just two or three cattle. These farmers depend on this income for survival. This is not corporate dairy or agriculture—it's subsistence-level farming. They cannot be expected to compete with giant agribusinesses abroad. In my discussions with US counterparts, both in government and industry, I found an understanding of these concerns. I hope this awareness continues to shape the future of our bilateral relationship. India and the US have a unique opportunity to grow together, support a rules-based global order, and build a partnership that benefits not just our two nations, but the world. Suresh Prabhu is India's former Minister of Commerce and Industry (2017-2019). Views are personal. He tweets @sureshpprabhu. (Edited by Ratan Priya)
India.com
21 minutes ago
- India.com
Donald Trump punishes 6 Indian companies for trading petroleum with Iran
Donald Trump punishes 6 Indian companies for trading petroleum with Iran US' State Department has announced sanctions over a dozen international firms for trading in Iranian Petrochemical products, on Wednesday. This includes the names of six Indian companies. These Indian firms are set to face sanctions under a 2018 Executive order signed by President Donald Trump in his first term that blocks all the property held by the sanctioned entities in the United States. The move comes as part of a broader effort by the Trump Administration in order to cripple Iran's energy exports, which count for a very significant chunk of Tehran's exchange earnings as well. Which are these six companies? These six Indian companies did a combined $221 million in business by importing and purchasing Iranian Petrochemical products in the years 2024 and 2025, according to the data provided by US State Department. These six companies are: Kanchan Polymers Alchemical Solutions Ramniklal, Jupiter Dye Chem Global Industrial Persistent Petrochem Private Limited Two of the above companies did business with firms in the United Arab Emirates (UAE), which has also been sanctioned. Along this, several firms based in Turkey, Indonesia, and China have also been sanctioned. Recently, Sai Saburi consulting, an Indian firm registered in New Delhi, was also sanctioned by the United States Treasury for facilitating Iran's oil trade, in the face of American sanctions. Four more Indian firms namely – Flux Maritime LLP, BSM Marine LLP, Austinship Management Pvt Ltd, and Cosmos Lines Inc – were sanctioned by the US Treasury and the State Department, in February. Why did the sanctions happen? These measures are a part of a fresh push from the Washington, in order to restrict Iran's revenues from the sale of oil by targeting West Asian nation's 'shadow fleet' of oil tankers. A slew of sanctions were unveiled to target an oil smuggling network run between Iraq and Iran by the Treasury Department. Shipping firms based in Singapore, the Seychelles and the Marshall Islands will also face similar action for transporting millions of barrels of Iranian oil. Iranian news agencies say that Hassan Abbaszadeh, the CEO of Iran's National Petrochemical Company, announced that the export revenues of Iran's petrochemical industry exceeded $13 billion in 2024-25. The campaign, devised by the Trump Administration, is an effort to force Iran into a deal, so it can give up its nuclear weapons program. The Executive Order 13846, signed by President Trump in 2018, says that the US government has the power to sanction an individual who 'knowingly provides significant financial, material, technological, or other support to, or goods or services' to individuals involved in Iran's energy, shipping or shipbuilding sectors. These sanctions were unveiled after the 2015 Iran nuclear deal was pulled by Trump, under which Tehran agreed for some restrictions in its nuclear program, in exchange for relief from sanctions and economic relief. What powers do these sanctions give to the authorities? These sanctions by the US government allow the authorities to 'block all property and interests in property that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person of the sanctioned person, and provide that such property and interests in property may not be transferred, paid, exported, withdrawn, or otherwise dealt in'.
