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NDTV
21 hours ago
- Business
- NDTV
"A Country That Has Changed Attitude...": Shashi Tharoor On Trump Tariff
India must consider reviewing its strategic partnership with the US which has "changed its attitude" through the imposition of 50 percent tariff on Indian goods, Congress MP Shashi Tharoor said on Friday. Speaking to reporters outside Parliament, the Lok Sabha MP from Thiruvananthapuram said India has its own self interests and suggested the country look for new markets instead of solely relying on the US. "What is happening is concerning. A country with which we had close relations, and we were working as strategic partners, if that country has changed its attitude, then India will have to think about many things," he said. His remarks came days after US President Donald Trump on Wednesday escalated his tariff offensive against India by slapping an additional 25 percent duty and subsequently doubling it to 50 percent on Indian goods over New Delhi's continuous imports of Russian oil. India condemned the "unfair, unjustified and unreasonable" move that is likely to hit sectors such as textiles, marine and leather exports hard. Prime Minister Narendra Modi on Thursday. said New Delhi would not back down in the face of economic pressure. With this action singling out New Delhi for the Russian oil imports, India will attract the highest US tariff of 50 percent along with Brazil. "If this is just a negotiating tactic, we have heard of Mr Trump's style of inking deals, and whether we can hold talks and find a way out in the coming two to three weeks, we don't know. But India also has its own self interests, our negotiations will be held on this basis," Mr Tharoor, who has of late been a vocal supporter of the Centre, said, referring to trade talks between the two countries. Earlier on Friday, Mr Trump said there will be no trade negotiations with India until a dispute over tariffs is resolved. The Congress leader said India should not solely depend on the American market, even though it is worth 90 billion dollars. "There are other countries as well. We just signed a Free Trade Agreement with the UK. 99% of Indian goods do not face any tariffs in the UK. We are even holding talks with the European Union. Africa, Asia... we will have to look for new markets," he said. "Besides, if our ties over cooperation on technology and Artificial Intelligence are affected, then it is a serious matter but if they are the same as before, and if only tariffs need to be discussed, then that is a separate issue," he added. According to US officials, the initial 25% tariff came into effect on 7 August. The additional levy will take effect in 21 days and apply to all Indian goods entering US ports - with exceptions for items already in transit and certain exempt categories. The sectors, which would bear the brunt of 50 per cent duty, include textiles/ clothing, gems and jewellery, shrimp, leather and footwear, chemicals, and electrical and mechanical machinery. In 2024-25, the bilateral trade between India and the US stood at USD 131.8 billion (USD 86.5 billion exports and USD 45.3 billion imports).
Ammon
2 days ago
- Business
- Ammon
New US tariffs on Jordanian imports take effect
Ammon News - New U.S. tariffs on Jordanian imports of 15% will take effect on Thursday, which is the "lowest additional tariff rate" among countries with a trade surplus with the United States. In a previous statement, a source confirmed that this percentage, which Jordan obtained after months on intensive negotiations between Jordan and the USA, preserves the competitiveness of Jordanian exports in US markets. On August 1, the White House unveiled a new set of tariffs targeting over 67 countries, including Jordan, with rates ranging from 10% to 41% based on trade dynamics and the state of bilateral negotiations. US President Donald Trump signed an executive order on July 31, 2025, setting the tariffs to take effect on August 7, 2025, seven days after the order was issued, to allow a grace period for customs procedures. Customs duties included Jordan at 15%, Tunisia at 25%, Algeria and Libya at 30%, Iraq at 35%, and Syria at 41%. The 15% rate is part of a package of countries that are treated the same way, such as the European Union, Japan, South Korea, and others, whether because of the size of the trade deficit or because the countries have not concluded allocation agreements. Since 2001, Jordan has benefited from a Free Trade Agreement (FTA) with the United States, allowing a portion of its exports to enter the U.S. market duty-free. Minister of Industry and Trade Yarub Qudah said that Jordan has been negotiating with the United states over the past few months, obtaining the lowest tariff increase among countries withe free trade agreements or with a trade surplus. The additional US customs duties gave Jordan a competitive advantage, Qudah explained, adding: "When the Kingdom is subject to a 15% duty, while other countries competing with it in the US market are subject to higher rates, this strengthens the competitive advantage of Jordanian products compared to what they had previously." He emphasized that the free trade agreement between Jordan and the United States remains in place, and that it is what provided this preferential advantage. He explained that customs duties imposed on most countries around the world ranged between 15% and 40%, with Jordan receiving the lowest rate. Additionally, the minister emphasized the importance of Jordan obtaining the lowest customs duty rates for industries destined for the US market, noting that this enhances export opportunities to this market and increases the Kingdom's investment attractiveness.
Hindustan Times
3 days ago
- Business
- Hindustan Times
UK–India FTA reimagines global trade post-Brexit
A new chapter in UK–India relations began when on July 24, 2025, Prime Ministers Narendra Modi and Keir Starmer signed the long-awaited Free Trade Agreement (FTA) — a bold, sweeping accord that transcends tariffs and quotas, aiming to reshape global trade flows between the world's fifth and sixth largest economies. Hailed as 'the most economically significant agreement for Britain since Brexit,' the deal opens wide channels of commerce, talent, and innovation between two countries with intertwined colonial histories and increasingly complementary economic trajectories. Jonathan Reynolds, UK business and trade secretary and Narendra Modi, India's prime minister. (Bloomberg) Negotiated over 13 formal rounds spanning three years, the FTA spans five critical domains: goods, services, investment, professional mobility, and social security cooperation. Goods: India will phase out tariffs on 90% of UK exports — including iconic products like Scotch whisky, luxury cars, cosmetics, and medical devices. Whisky duties drop from 150% to 75% immediately, reducing further to 40% over the next decade. UK cars, once taxed at over 100%, now gain quota-based access at just 10%. Indian exports: UK will grant 99% duty-free access to Indian products, favouring textiles, gems and jewellery, auto components, seafood, and agricultural goods — a crucial win for India's labour-intensive sectors. Services and mobility: The UK has opened up 137 service sub-sectors, including private health care, education, finance, and IT services. An annual mobility quota allows 1,800 Indian professionals (from chefs to coders) to work in the UK with fast-tracked visa approvals and mutual qualification recognition. Social security agreement: Under the Double Contribution Convention, Indian professionals on short-term assignments (up to 3 years) will be exempt from UK social security payments, saving Indian companies and workers an estimated ₹ 4,000 crore annually. 4,000 crore annually. Government procurement: UK firms gain access to India's ₹ 4.09 lakh crore procurement markets, while Indian businesses can bid on £38 billion worth of UK government tenders. Both nations stand to benefit significantly: For the UK, a much-needed post-Brexit economic anchor, connecting British firms with India's booming consumer base. Helps diversify away from Eurozone dependence and align with Indo-Pacific supply chains. Sectors such as alcohol, automotive, pharmaceuticals, and aerospace (e.g., Rolls-Royce and Airbus contracts with India) are poised for growth. Estimated annual GDP boost of £4.8 billion and £6 billion in new investments, creating 2,200+ jobs. For India, this enables duty-free market access across sectors historically stifled by high UK tariffs. Boost for MSMEs and labour-intensive exports. Supports internationalisation of Indian services, especially in education, fintech, and IT. Expected to attract strategic investment in clean energy, AI, semiconductors, and advanced manufacturing. Source: Imports: India's major import partners are mentioned and the size of the bubble shows the share in imports. ( Figure shows major export partners' and size of the bubble shows the share of exports ( ) It is clear that India exports a considerable amount of goods and services to the UK, and maintains a hefty trade surplus. However, this FTA will open the Indian market for the UK, and time will tell how it will unfold for both the nations. Currently, India enjoys a trade surplus with the UK, exporting over $40 billion annually and importing around $20 billion. The new agreement could widen this gap — especially with enhanced access for Indian manufacturers and service providers. However, trade economists caution that while the surplus may grow in the short-term, UK exports (particularly in premium goods and services) could gain momentum, especially with lower entry costs and stronger brand positioning. The net effect depends on how agile Indian exporters are in scaling production and navigating compliance frameworks. There's also talk of trade inversion risks — if cheaper UK imports undercut Indian domestic players. For instance, British lamb and salmon may pressure Indian meat producers. Likewise, cosmetics and processed food products could disrupt small-scale Indian FMCG markets. To address this, India has included safeguard mechanisms and phased liberalisation timelines in sensitive sectors. India's expectations hinge on four interlinked trajectories: Export competitiveness: With duty-free access, sectors like textiles, gems, auto components, and pharma could see double-digit growth. Ramping up quality standards and supply chains will be key. Skill recognition and diaspora mobility: For India's global workforce, especially in health care and education, the FTA promises smoother professional mobility and recognition of credentials, strengthening India's soft power globally. Innovation and investment: India expects a surge in UK FDI — especially in green hydrogen, quantum computing, and EVs — giving a fillip to its Make in India and Startup India initiatives. Strategic standing: As India deepens ties with the UK, it simultaneously asserts its growing stature in global trade leadership. Coupled with FTAs already signed with Australia and the UAE, India's position as a hub for diversified, defensible global trade becomes more pronounced. A joint review body will assess the agreement annually, with provisions for amendment, fast-track dispute resolution, and dynamic quota adjustments. Both governments have committed to transparency and consultation, especially on contentious sectors. Critics argue the real test lies not in signatures but implementation. Policy clarity, exporter handholding, compliance simplification, and SME support systems will determine whether this ambitious pact meets its lofty promise. As a new trade corridor emerges between London and Delhi, the agreement offers a powerful reminder that while geopolitics may divide, trade — done right — can unite economies and uplift livelihoods. This article is authored by Narinder Kumar, assistant professor, School of Economics and Public Policy, RV University.
United News of India
3 days ago
- Business
- United News of India
India, Philippines elevate ties to strategic partnership; focus on defence, Indo-Pacific
New Delhi, Aug 5 (UNI) India and the Philippines elevated their bilateral relationship to a "strategic partnership" following talks between Prime Minister Narendra Modi and visiting Philippine President Ferdinand Romualdez Marcos Jr. The move marks a significant upgrade in ties as the two nations seek to deepen cooperation across defence, trade, and the Indo-Pacific region. Addressing the media after delegation-level talks, Prime Minister Modi said, 'Dialogue at every level and cooperation in every sector have long defined our relations. Today, we held extensive discussions on mutual cooperation, regional issues, and the global situation. I am pleased to announce that we have agreed to elevate our ties to a strategic partnership.' Modi said a comprehensive action plan has been formulated to translate the potential of this new partnership into tangible results. 'Our bilateral trade continues to grow and has crossed USD 3 billion. To strengthen this further, we will prioritise the early completion of the India-ASEAN Free Trade Agreement review and move towards a bilateral Preferential Trade Agreement,' he said. 'The Philippines is a key partner in India's Act East Policy and SAGAR vision (Security and Growth for All in the Region). We are committed to peace, security, prosperity, and a rules-based order in the Indo-Pacific region. We support freedom of navigation in accordance with international law,' he said, highlighting India's broader East Asia policy. Highlighting the finalisation of the science and technology cooperation plan, PM Modi said, 'Indian companies are working in sectors such as information and digital technology, healthcare, automobiles, infrastructure, and minerals. In science and technology, joint research is underway — from virology to AI and additive manufacturing.' The regional centre of the International Rice Research Institute in Varanasi is working on ultra-low glycemic index rice. 'In other words, we are working together on both taste and health. I am happy to share that, under our Development Partnership, we will increase the number of Quick Impact Projects in the Philippines and support the development of sovereign data cloud infrastructure there,' Modi said. 'Our partnership on Earth is already strong — and now, we are preparing to collaborate in space as well. An agreement for this was signed today,' he added. The two sides also reaffirmed their commitment to peace, security, and a rules-based order in the Indo-Pacific. 'India and the Philippines are friends by choice and partners by destiny. We are committed to freedom of navigation in accordance with international law,' Modi said, while also thanking the Philippine government for condemning the recent terrorist attack in Pahalgam and expressing solidarity with India. 'Our growing defence ties are a sign of deep mutual trust. As maritime nations, maritime cooperation between our countries is both natural and necessary. We have worked together in humanitarian aid, disaster relief, and search and rescue operations. Today, while the President is in India, three Indian Navy ships are, for the first time, participating in a naval exercise in the Philippines. India's hydrography ship is also taking part,' Modi noted. 'We welcome Philippines' participation in the International Fusion Center set up by India for the Indian Ocean Region. We express our gratitude to the Government of the Philippines and the President for strongly condemning the terrorist attack in Pahalgam and for standing with us in our fight against terrorism,' he said. The agreements signed today on Mutual Legal Assistance and the Transfer of Sentenced Persons will further strengthen security cooperation between the two nations. Emphasising that the Cultural Exchange Programme signed today would further promote historic cultural ties, Prime Minister Modi also welcomed the Philippines' decision to offer visa-free entry to Indian tourists. India, in turn, has decided to offer free e-visas to tourists from the Philippines. Work is also underway to start direct flights between Delhi and Manila later this year. In his remarks, President Ferdinand Marcos Jr expressed gratitude for the warm welcome and underscored the significance of his visit, noting that he is the fifth Philippine President to visit India. 'This is a momentous decision to elevate our ties to a strategic partnership,' he said, adding that both sides had agreed to expand defence cooperation and promote naval and coast guard interoperability in the maritime domain. He highlighted the two countries' shared interest in ensuring safe navigation and maritime security in the Indo-Pacific, and reaffirmed the Philippines' commitment to a free, open, and rules-based regional order. 'We both have high stakes in the Indo-Pacific. As the incoming Chair of ASEAN, I thank Prime Minister Modi for his strong support,' President Marcos said. "We have decided to expedite the work on bilateral trade agreement, Visa free entry to Indian tourists to visit Philippines," President said. He also welcomed the resumption of private flights from October highlighting that safe navigation and security are also underscored the fact that both the countries have "high stakes in the free and open Indo-Pacific region". He said that as an "incoming chair of ASEAN, I thank PM for his support." UNI AAB PRS
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Business Standard
4 days ago
- Business
- Business Standard
India and Philippines to work on bilateral preferential trade pact
India and the Philippines on Tuesday signed nine pacts, including a declaration and implementation of a strategic partnership, terms of reference for talks among the armies, air forces and navies of both countries, and cooperation on the peaceful use of outer space. The announcement of the strategic partnership was made after talks between Prime Minister Narendra Modi and visiting Philippines President Ferdinand R Marcos Jr, a day after the navies of India and the Philippines concluded a two-day joint exercise near Scarborough Shoal — an atoll at the centre of the maritime dispute between China and the Philippines in the South China Sea. 'India and the Philippines are friends by choice and partners by destiny. From the Indian Ocean to the Pacific, we are united by shared values. Ours is not just a friendship of the past, it is a promise to the future,' Modi said, with Marcos Jr by his side. 'As maritime nations, maritime cooperation between the two countries is both natural and essential,' Modi added. At a media briefing later in the day, P Kumaran, Secretary (East) in the Ministry of External Affairs, said India's position on the South China Sea is 'clear and consistent', adding that India has an 'abiding interest' in peace and stability in the region, and considers it part of the global commons. He also said that India is in talks with the Philippines for the development of submarine infrastructure. At his joint briefing with the visiting dignitary, the Prime Minister said trade between the two countries was increasing steadily and had crossed $3 billion. 'To further strengthen trade ties, it is our priority to review the India-ASEAN Free Trade Agreement at the earliest. We have also decided to work towards a bilateral Preferential Trade Agreement,' he said. India also extended a gratis e-tourist visa facility to Filipino nationals for one year. Marcos said the two countries had 'agreed to continue levelling up our collaboration in defence and security', adding that the 'expanding capabilities and footprint' of India's domestic defence manufacturing industry would support the Philippines' ongoing military modernisation. 'We will foster naval and coast guard interoperability via port calls, cooperative activities, and capacity building in the maritime domain,' Marcos added. New Delhi and Manila have shared concerns over China's assertiveness. Manila has a territorial dispute with Beijing in the South China Sea. Philippine military chief Romeo Brawner Jr has said Manila is considering ordering more weapons systems and equipment from India. The Philippines previously purchased a shore-based anti-ship missile system from BrahMos Aerospace — a contract worth 18.9 billion pesos ($329 million) — to boost its coastal defence. Prime Minister Modi said the two countries were elevating their ties to a strategic partnership, with greater emphasis on increasing interaction among the armed forces. He said the Philippines is an important partner in India's Act East Policy and MAHASAGAR (Mutual and Holistic Advancement for Security and Growth Across Regions) vision. 'We are committed to peace, security, prosperity, and a rules-based order in the Indo-Pacific region. We support freedom of navigation in accordance with international laws,' Modi said. He added that under the development partnership, India would increase the number of Quick Impact Projects in the Philippines and also cooperate in developing sovereign data cloud infrastructure. 'Today, when the President is in India, three ships of the Indian Navy are participating in a naval exercise in the Philippines for the first time,' he said. Modi also noted that Indian companies are active in sectors such as information and digital technology, health, automobiles, infrastructure, and minerals.
