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New Indian Express
18 minutes ago
- New Indian Express
Trump tariff move unlikely to derail Tamil Nadu's industrial ambitions: Industries Minister Rajaa
CHENNAI: Tamil Nadu is prepared to absorb the impact of new US tariffs, State Industries Minister Dr TRB Rajaa said on Thursday, after US President Donald Trump announced a 25% duty on goods imported from India, escalating trade tensions between the two countries. Speaking on the sidelines of the second edition of Passenger Vehicle Expo, Rajaa said India's most industrialised state had already laid contingency plans to shield key sectors such as manufacturing, textiles, and footwear from sudden trade shocks. 'We've seen the Covid impact, we've seen global disruptions,' he said. 'If there's one state that's resilient enough to weather this, it's Tamil Nadu.' Rajaa said he was 'unhappy' with Trump's rhetoric. 'As an Indian, and as a representative of Tamil Nadu, I found the language disturbing. But we will stand by the Union government and hope the Prime Minister and his Cabinet respond with wisdom, balancing the interests of our farmers, the primary sector, and industry.' He also warned against overinterpreting the tariff move based on a single post. 'This is diplomacy in trade between two of the world's largest economies,' he said. 'It's unfortunate the US President chose such a platform for such a major announcement. But I trust Prime Minister Narendra Modi will respond in the appropriate format.'
The Wire
18 minutes ago
- The Wire
From ‘Howdy Modi' to ‘Cannot Name Trump': How Modi Has Taken a Hit from Trump's Tariffs and Taunts
Trump's actions hit directly at the pillars propping up Modi's domestic political strength in ways visible and hard to immediately fix. Prime Minister Modi, accompanied by US President Donald Trump, writes in the visitor's book at the White House. Photo: Press Information Bureau/GODL. New Delhi: US President Donald Trump's announcement of steep tariffs on India, his criticism of the Indian economy as "dead" and his public overtures towards Pakistan have placed Prime Minister Narendra Modi, more than India as a nation, in a uniquely difficult spot. While the impact on India as a country is tangible, it is a moment of political reckoning for Modi, who has been under pressure since the 2024 Lok Sabha elections when the BJP lost its majority in the house. Here are the reasons it places Modi in a tough spot. Destroys Modi's domestic image of a global statesman Modi has painstakingly cultivated an image of himself domestically as a top global leader exhibiting close personal friendships with the world's most influential heads of state, particularly in the US. Trump's public insults and punitive tariffs undermine this persona, making Modi appear ineffective or even powerless in protecting Indian interests and standing on the world stage. Under pressure from the US, he has already succumbed to China, even though Beijing continues to pile on pressure and refuses to make any concessions. This severely erodes Modi's political brand at home, where he and his party have used images from his foreign trips to project influence domestically. Political ammunition for domestic opposition With Trump – the first for an American president – openly criticising the Indian economy and labelling it 'dead', opposition parties such as the Congress have seized upon these remarks to portray Modi's economic approach and foreign outreach as failures. They argue that Modi's support of Trump during previous years has unravelled, leaving India diplomatically isolated and economically vulnerable. Modi's failure to name Trump in his Lok Sabha speech, despite an open challenge by leader of opposition Rahul Gandhi, has shown him as weak and scared of standing up to the US president. This provides ammunition for the opposition parties to politically target Modi when he is already being challenged by the Rashtriya Swayamsevak Sangh on the issue of the election of the new BJP president. Setbacks undermine Modi's central arguments The new US tariffs threaten to erode the competitiveness of Indian exports, damage investor sentiment and threaten to bury Modi's faltering attempts to get global manufacturing to India. Key labour-intensive sectors such as jewellery, textiles and certain electronics face certain job losses. These outcomes create immediate economic pain and threaten Modi's narrative of making India an economic powerhouse as the 'fourth-largest economy in the world'. If the US also follows through on penalties related to India's Russia policy, the fallout could be even more severe. Energy prices could rise and India's fiscal deficit could increase, putting further pressure on the budget and bringing greater distress to the people. Hyphenation with Pakistan sours nationalist dreams Trump's statements and overtures that club India with Pakistan, including praising a new US-Pakistan energy deal and openly patronising Islamabad, are a direct affront to Modi's narrative of India as a regional counterweight to both Pakistan and China. The perception that the US is tilting toward Pakistan, or using India-Pakistan tensions for leverage, is particularly damaging to Modi's core nationalist constituency, which takes pride in a strong, singular global standing for India. It believed that India cannot be equated with its neighbour or seen as needing US mediation to end the conflict. Modi's inability to secure even this basic gain of the UPA era damages his ' desh nahi jhukne doonga ' brand among his core Hindutva supporters. Loss of bargaining leverage hurts economy Modi's strategy had relied on fostering goodwill and leveraging the India-US relationship for favourable trade agreements and strategic cooperation. Trump's abrupt imposition of tariffs, at rates higher than those faced by competing Asian economies, signals that Washington is willing to use harsh tactics, regardless of personal or diplomatic ties. This despite Modi rushing to meet Trump after his re-election early this year. New Delhi is now left scrambling for a response, with very limited leverage, and must consider politically costly concessions or risk a further downturn in exports and economic growth. After 11 years of being in power, Modi can't shift the blame on anyone else and will be held accountable for the severe economic downturn in the public eye. In sum, Trump's actions and rhetoric hit directly at pillars propping Modi's domestic political strength and standing, in ways that are both visible and hard to quickly repair. The impact on India will be managed, but it is Modi, as a political leader and as an electoral brand, who now faces the greatest challenge in his eleven years in office. The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments.
Time of India
18 minutes ago
- Time of India
A roadmap for India to deal with Trump's tariffs
A roadmap for India to deal with Trump's tariffs R Jagannathan Jul 31, 2025, 21:30 IST IST Keep talking to him. But fast-track other trade talks. Retaliate if he targets service exports. Plan for worst case impact on growth. Give domestic stimulus if exports take a big hit Whether you are a friend, foe or somewhere in-between (India, for example), Trump has been a vitriolic equal opportunity offender. From Canada to Mexico to EU and Japan, there is no country that's been spared this US president's verbal lashes, suggesting that bullying is his way of getting the kind of trade and other deals he thinks America will benefit from. Now it's the turn of India to be at the wrong end of Trump's verbal battery. On Wednesday, he announced a 25% tariff on Indian exports to US, plus some additional (unstated) penalties for buying Russian oil and defence equipment. A while later, he claimed he didn't care about India and Russia: 'They can take their dead economies down together.'
