Trump plans to initially impose ‘small tariffs' on pharma imports to boost US production
Trump said on Tuesday that he plans to announce tariffs on semiconductors and chips in the "next week or so," but gave no further details.The United States has been conducting a national security review of the pharmaceutical sector, and the industry has been preparing for possible sector-specific tariffs. The administration has not announced when the results of that probe will be released.Several drugmakers have pledged multibillion-dollar investments in US manufacturing as Trump threatens import tariffs, with AstraZeneca recently committing USD 50 billion to expand its American operations.PhRMA, the main lobbying group for the industry, did not immediately respond to a request for comment.A framework agreement between the United States and the EU sets out that tariffs on pharmaceuticals and semiconductors are currently zero, but if the United States raises tariffs following its import investigation, they will be capped at 15 per cent .- EndsTune InMust Watch
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Hans India
27 minutes ago
- Hans India
US may not impose additional 25 pc tariffs on India over Russian oil, hints Trump
New Delhi: The Donald Trump administration may not impose secondary tariffs on India over purchasing Russian energy, as the US President said that Russia has already lost a key oil client. Speaking to Fox News aboard Air Force One en route to Alaska, Trump said the US may not impose secondary tariffs on countries continuing to buying Russian crude oil. "Well, he (Vladimir Putin) lost an oil client, so to speak, which is India, which was doing about 40 per cent of the oil. China, as you know, is doing a lot…,' said Trump. 'And if I did what's called a secondary sanction, or a secondary tariff, it would be very devastating from their standpoint. If I have to do it, I'll do it. Maybe I won't have to do it,' he added. The secondary 25 per cent tariffs on India are likely to come into effect from August 27. Earlier this week, US Treasury Secretary Scott Bessent said if 'things don't go well' between Trump and Putin at the Alaska summit, then secondary sanctions on India for purchasing Russian oil could go higher. Meanwhile, the government has already said the targeting of India is unjustified and unreasonable. 'Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,' it said. The fact is that India has sharply increased its purchases of oil and gas from America. This, in turn, has led to a reduction in India's trade surplus with the US, which is a major aim of the Trump administration's trade policy. Official figures show that India's oil and gas imports from the US have jumped by as much as 51 per cent from January to June this year. The country's liquefied natural gas (LNG) imports from the US nearly doubled to $2.46 billion in the financial year 2024-25 from $1.41 billion in 2023-24. Prime Minister Narendra Modi had assured in February that India would increase energy imports from the US to $25 billion in 2025 from $15 billion in 2024 to help reduce the trade deficit of the US. This was followed by Government-owned Indian oil and gas companies entering into discussions for more long-term energy purchases from the US companies. New Delhi has also made it clear that it was diversifying its sources of energy imports to reduce dependence on Russian oil. New Delhi has also made it clear that India and the US share a very important strategic relationship that goes beyond trade.
The Wire
27 minutes ago
- The Wire
Why Gautam Adani is a Factor in India-US Ties
Why does Narendra Modi feel the need to protect Adani to that extent vis-à-vis the American investigators? We must get back to the genesis of their relationship in Gujarat to respond – partly – to this puzzle. Gautam Adani was not at all an important businessman before Narendra Modi helped him to grow in Gujarat as chief minister of the state. Adani was born in 1962 in Ratan Pol in the old city of Ahmedabad, his parents having migrated from north Gujarat. At the age of 18, he dropped out of Gujarat University and moved to Bombay, served a stint as a diamond sorter at Mahindra Bros. and then became a diamond trader. He moved to Ahmedabad in 1981 to help his brother, Mahasukh, who was starting a plastic-film manufacturing business. This company was heavily dependent on supplies of PVC. The sole producer of PVC in India at that time was IPCL, which used to supply two tonnes per month to the Adani brothers. But their rapidly growing business needed over 20 tonnes per month. Therefore, Adani began importing plastic granules through the Kandla port. The Adani group then diversified. In 1988, Gautam Adani set up a commodities trading venture called Adani Exports. In the next four years, his import orders grew from 100 metric tonnes (MT) orders to 40,000 MT. In 1991-92, Adani and agribusiness group Cargill were given 3,000 acres of coastal land in Kutch by the Chimanbhai Patel government for salt production. The project fell through after protests by George Fernandes and others, and Cargill pulled out. Adani held on to his land and began thinking of converting Mundra into a big port. In the framework of the nascent liberalisation, the Gujarat Maritime Board decided to allot ports to private companies in a joint venture with the state – an initial list of 10 ports was created, which included Mundra, which was 14m deep (deeper than Kandla at 12m) and allowed it to berth larger ships of 200,000 MT and above. In 1993, the company was incorporated into a limited company with two backers, Adani himself and Rajesh S. Adani, his younger brother. In 1997, Adani Exports Ltd. entered into a joint venture with the Gujarat government to build a mega port at Mundra. Around that time the Adani group established a base in Dubai, where two of the five Adani brothers were primarily in charge of the supply chain of Adani Exports. In 1999, Adani ventured into coal trading for the first time, with a shipment landing at Mundra. In 2000, Adani let P&O Australia, one of the world's largest port operators, set up a container terminal in Mundra. There is no evidence that Gautam Adani and Narendra Modi knew each other before the latter became chief minister, but they became very close soon after, in the aftermath of the 2002 pogrom. As this tragic episode of communal violence disrupted the state economy for weeks, businessmen including senior members of the Confederation of Indian Industry, criticised Modi. Rahul Bajaj, a senior member of the CII, described 2002 as a 'lost year for Gujarat' and challenged Modi with several 'tough questions' during a CII meeting in Delhi in February 2003, where Jamshyd Godrej also raised the issue. In November Azim Premji declared similarly at an IIM Ahmedabad seminar: 'Investors are wary of coming to Gujarat due to the lingering communal tensions in the state apart from its proximity to Pakistan.' Tarun Das, the then director-ceneral of the CII went to Gandhinagar one month after the meeting of the organisation during which Narendra Modi had been criticised in Delhi and told him that the CII leaders 'were very sorry for all that had happened.' But Gautam Adani and other CII members from Gujarat had already analysed the attitude of bigger businessmen from Gujarat as a great opportunity. They formed the 'Resurgent Group of Gujarat' in order to counter what they regarded as 'a concerted attempt by a section to defame Gujarat.' Among them were Dr Karsan Patel and Ambubhai Patel (Nirma group), Indravadan Modi (Cadila Pharmaceuticals), Pankaj Patel (Cadila Healthcares), Chintan Parikh (Ashima) Anil Bakeri (Bakeri group) and, last but not least, Gautam Adani who took a leading role. Like Modi, he was relatively isolated in 2002-03. He was not part of the business establishment either, as evident from his marginal position in terms of interlocking directorates. Both were newcomers to the high table of national politics on the one hand and big business on the other. Also read: Gautam Adani a 'Personal Matter': PM Modi Deflects Question; 'Covering Up Corruption,' Says Opposition When the first Vibrant Gujarat meeting took place in September-October 2003, Adani went further than his colleagues and pledged Rs 150 billion in investments. This was a major turning point of the Adani-Modi relationship: Modi could start to pay back for Adani's support, not only within the CII but in the context of his transition from the role of 'Hindu hriday samrat (ruler of Hindu hearts)' to that of ' vikas purush (one who would bring about development)'. The Adani Port and SEZ (APSEZ) at Mundra (Kutch district) was created the same year to provide cargo handling and other port services. It soon became India's first multi-product port-based SEZ, after Adani was granted 3,585 hectares (ha) of land, including 2,008 ha of forest and 990 ha of gauchar or village grazing land. Two converging investigations have alleged that the Adani Group bought this land, in one area, at a rate ranging from Re 1 to Rs 32 a square metre when the market rate was over Rs 1,500 rupees a square metre and, in another area, at the cost of Rs 10 rupees per sq. m., when the market price there was between Rs 700 and 800 per sq. m. In Mundra, Adani acquired up to 7,350 ha. Forbes argues, on the basis of the signed agreements, that for most of this area 'he got the 30-year, renewable leases for as little as one US cent a square meter (the rate made out at 45 cents a square meter). He in turn has sublet this land to other companies, including state-owned Indian Oil Co., for as much as US$ 11 a square meter. Between 2005 and 2007 at least 1,200 hectares of grazing land was taken away from villagers.' During the 2009 Vibrant Gujarat summit, the Modi government 'signed MoUs allowing the Adani group a Rs-150-billion expansion of its SEZ over the next 15 years. The government topped off its largesse of land to the Adani group with five-year tax breaks of over Rs 32 billion, almost four times what it had marked for redeveloping Kutch after the 2001 earthquake. Government data shows an investment of Rs 1.32 trillion in the Adani SEZ, port, and power plant, but only 38,875 jobs were created. That comes to an astonishing figure of Rs 33.8 million for creating one job...'. This is a clear indication of capital intensity – a question we'll return to below. In 2013, a CAG report pointed out that in the Adani Group's SEZ in Mundra '14 lease deeds for an area of 4,84,326 sq. mt. in MPSEZ were registered during the period from December 2008 to November 2011. However, the Collector had given permission to only one unit [...] Accordingly, the transfer of land admeasuring 4,65,728 sq. mt. by way of lease in the remaining 13 cases were irregular'. The CAG also indicted the Gujarat government for purchasing electricity from the Adani group at an abnormally high price. It pointed out that this 'non-adherence to the terms of Power Purchase Agreement led to short recovery of a penalty of Rs 1.60 billion and passing of undue benefit to a private firm'. In 2012, the Modi-Adani connection was targeted by Arvind Kejriwal, the leader of the Aam Aadmi Party who, the year before, had taken part in anti-corruption campaigns along with Anna Hazare. He accused the Gujarat government of buying power from the Adani Group at Rs 5.45 per unit when the Gujarat Mineral Development Corporation had made a better offer. Gas was another source of income for the Adani group, as it had also acquired a monopolistic position in the supply of CNG in Ahmedabad. In its last report dealing with the Modi government in Gujarat, the CAG reiterated the critique it had made in 2012 against the Adani group and arraigned the Essar group too: "…The purchase of power from the private sector increased to 37.22% (2012-13) from 15.22% (2008-09). Of this increase, the share of Private IPPs in power purchased from private sector [the Adani and the Essar groups], increased to 82.75% (i.e. 22,562.17 million units) in 2012-13 from 66.59% (i.e. 5,653.24 million units) indicating an increase of 300% in purchase of power from them during 2008-09 to 2012-13." The Adani group was also targeted by environmentalists. The Gujarat Coastal Zone Management Authority (GCZMA), in May 2006, formed a subcommittee which reported that the Adani Group had built many bunds in the inter-tidal area and blocked many creeks feeding water to the mangrove patches. To no avail. Four years later, in December 2010 the Ministry of Environment and Forests (MoEF) sent an inspection team to follow up on complaints from local inhabitants. The report presented after the visit found many instances of non-compliances. It made the same observations regarding large scale destruction of mangroves and obstruction of creek systems and natural flow of seawater because of reclamation. It made no difference. On September 14, 2012, the Minister of State of Environment and Forests (MoEF), Jayanthi Natarajan constituted a Committee under the Chairmanship of Sunita Nair, the Director General of CSE, for an inspection of Mundra port. It reached the same conclusions as its predecessors. Also read: 'Modi's Hands Tied Due to US Investigation into Adani,' Says Rahul Gandhi All the inspectors and experts have also observed that the Mundra thermal plants of Adani and Tata released fly ash, despite the terms of the 2007 clearance. In 2011 the Gujarat Pollution Control Board Inspection revealed that about 27,127 MT of fly ash was found to be dispersed in low-lying areas of the MPSEZ. The Sunita Nair committee made a similar observation. When Megha Bahree visited the place, she noticed that 'Fly ash and saline water from Adani Power and a nearby Tata Power Co. Ltd. plant are spoiling the crops and making the soil less fertile…'. The Sunita Nair committee recommended a Rs 2 billion environment restoration fund (ERF), but no penalty was imposed on either company by the government. In 2016, the Gujarat high court appointed another committee to enquire about the degradation caused by the Mundra port. It came to the same conclusion as its predecessor but, says environmentalist Mahesh Pandya, 'If you ask the Gujarat Pollution Control Board or the state environment and forest department how many notices they have served to the company, you will find none.' By the end of Modi's chief ministership, the combined market value of Adani Enterprises, Adani Power and Adani Ports and Special Economic Zones (APSEZ) were close to the value of Reliance Industries – whereas the Adani group was five hundred times smaller only 13 years before, in 2001. Indeed, the turnover of the group rose more than 20-fold, from Rs 37.41 billion in 2001-02 to Rs 756.59 billion in 2013-14. In fact, the rise of the Adani group accelerated in 2013 and 2014 when Modi became a strong contender to the post of Prime Minister: the market capitalisation of its companies increased by 250% between September 2013 – when Narendra Modi was declared the BJP's official candidate for prime ministership – and September 2014. Between September 2013 and May 2014, the wealth of Gautam Adani had already increased by Rs 501.31 billion because of the market capitalisation of his companies (it increased by Rs 18 billion every day during the week that followed Modi's electoral success). Mukesh Ambani's wealth increased by 'only' Rs 305.03 billion rupees (US$ 3.81 billion) during the same period. This sudden prosperity could be explained only by Adani's close relation with Narendra Modi – which became obvious when Modi used Adani's chartered plane on his campaign trail across India in the run-up to the 2014 elections. On May 22, 2014, the day he was sworn in as prime minister, he flew to New Delhi from Ahmedabad in Adani's private aircraft, the Indian flag embossed on the aircraft to his right, and on his left, an embossed logo of the Adani Group – the duo was transitioning from the state to the national level. Today's situation is the legacy of these Gujarat years which saw the making of a new oligarch. Since then, the mutual dependence has further deepened. Both men need each other in a very classic manner: the politician offers protection to the crorepatti who pays for his expenditures – including election campaigns whose cost represented billions of dollars in 2014, 2019 and 2024. Whether Narendra Modi can help Gautam Adani to escape from the American investigations remains to be seen as easily as from the Indian ones. In diplomatic relations, there are wheels within wheels. This article draws from my latest book: Gujarat under Modi. The Blueprint of Today's India, Bangalore, Westland/Context, 2024. Christophe Jaffrelot is Senior Research Fellow at CERI-Sciences Po/CNRS, Paris, Professor of Indian Politics and Sociology at King's College London, Non resident Scholar at the Carnegie Endowment for International Peace and Chair of the British Association for South Asian Studies. The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments. Advertisement
Hindustan Times
27 minutes ago
- Hindustan Times
Hours after Putin talks stall, Trump repeats he averted India-Pakistan 'nuclear' war
US President Donald Trump on Monday reiterated his claims of preventing wars across the globe, including between India and Pakistan, while defending his administration's push for ceasefires in conflicts that, as Fox News host Sean Hannity noted, 'do not impact the United States as much as [they do] allies in Europe.' President Donald Trump talks with Russia's President Vladimir Putin Friday, Aug. 15, 2025, at Joint Base Elmendorf-Richardson, Alaska.(AP) The US President's remarks came just hours after a highly anticipated summit with Russian President Vladimir Putin yielded no agreement to resolve or pause Moscow's war in Ukraine. In an interview on Hannity, the Fox News primetime show, Trump was asked why he was investing time and energy into disputes seemingly far from US shores. Sean Hannity asked him: 'This (Ukraine war) does not impact United States as much as it does our allies in Europe. But you are doing it anyway. Why?' Trump responded that his actions were motivated by a desire to save lives and avoid catastrophic escalation. Donald Trump said, 'Number one, to save lives in all cases. Cause wars are wars. See what would have happened with Cambodia as an example. I was involved with negotiating a trade." Trump went on to claim that India and Pakistan ceasefire wouldn't have been possible without his involvement, a claim that has been repeatedly denied by India. "Take a look at India and Pakistan. They were shooting down airplanes already. And that would have been maybe nuclear. I would have said it was gonna get nuclear, but I was able to get it done. Number one is lives, number two is everything else,' Trump said. The US President in the past has claimed that without his involvement, 'six major wars' would be raging globally. 'India would be fighting with Pakistan. You see what we did yesterday with two nations that we were trading with,' he said, referring to the recent ceasefire between Thailand and Cambodia after five days of border clashes that left at least 33 people dead. Trump said he had warned the two Southeast Asian nations that Washington would not pursue trade deals with them unless they agreed to halt fighting. 'We got them settled in 24 hours,' he added. India rejects Trump's ascertions Trump's latest comments come amid repeated denials from New Delhi over his claims of brokering a ceasefire between India and Pakistan earlier this year. External Affairs Minister S. Jaishankar told Parliament that the understanding with Pakistan was reached through direct talks between the Directors General of Military Operations (DGMOs), without any US involvement. 'I want to make two things very clear. One, at no stage in any conversation with the United States was there any linkage with trade and what was going on,' Jaishankar said, adding that there was no call between Prime Minister Narendra Modi and Trump during the period Trump referred to. Despite these denials, Trump has repeatedly insisted that his administration 'got it done,' framing his role as central in preventing escalation between the two nuclear-armed rivals. Since May, Trump has cited the India-Pakistan ceasefire alongside other disputes to underline his foreign policy record. He has also claimed credit for pressuring Russian President Vladimir Putin over Ukraine, saying recently that he gave Putin a '10 or 12 day' deadline to end the war.
