Latest news with #Kausikan
CNBC
5 days ago
- Business
- CNBC
From 'great friend' to 'tariff king': The changing shades of the U.S.-India relationship
In February, U.S. President Donald Trump and Indian Prime Minister Narendra Modi exchanged warm greetings and bear hugs, and pledged to pursue an early trade agreement. Now, six months on, that goodwill has soured. Trump labels India the "tariff king," threatens higher levies within 24 hours, and accuses it of fueling Russia's war in Ukraine through oil purchases. That shift raises questions: Will India yield to U.S. pressure, or push back and risk straining a two-decade partnership? Former Singapore diplomat Bilahari Kausikan told CNBC that India will always prioritize its national interests. "India is [a] country with a deep sense of self as an independent actor," he said, adding it will "never play deputy to any sheriff." On Wednesday, Trump vowed to "substantially" raise tariffs on Indian exports, following a 25% hike and threats of penalties over Russian oil and arms purchases. That marks a stark reversal from earlier optimism, when Modi and Trump aimed to double bilateral trade to $500 billion by 2030. Vice President JD Vance had agreed on terms for a trade deal, and Commerce Minister Piyush Goyal had anticipated "preferential" tariffs just days before the hike. But Kausikan, who was also former permanent secretary of Singapore's foreign service, said it's "absurd to think that just because New Delhi is shocked at Trump's tariffs, his insulting characterization of the Indian economy as 'dead' and his flirtation with Pakistan, India will swing to China or Russia at U.S. expense." He was referring to Trump's post on social media, which called the economies of both India and Russia "dead." India leaned toward the Soviet Union during the Cold War, but after the USSR's collapse, India deepened relations with the U.S., especially under Presidents George W. Bush and Barack Obama. "What brought India and the U.S. together was a shared concern over China," Kausikan noted. "That concern isn't going away." Today, the two nations had elevated their partnership to a "Comprehensive and Global Strategic Partnership" with cooperation in defense, technology, and clean energy. India was designated a "major defense partner" by the U.S. in 2016. However, Evan Feigenbaum, Vice President of studies the Carnegie Endowment for International Peace warned in a commentary Monday that Trump's actions could unravel more than two decades of progress. Speaking on CNBC's "Squawk Box Asia," he said although there were points of disagreement in their bilateral relationship — such as India's ties with Russia and the United States' ties with Pakistan — "they never let those third party relationships or concerns bleed back into the bilateral relationship in ways that were very debilitating." "All bets are off now," he added. India's External Affairs Ministry responded sharply to criticism over Russian oil purchases Tuesday, calling it "unjustified and unreasonable." The ministry also pointed out that Western nations criticizing India are themselves continuing to trade with Russia. Feigenbaum said India sees that as "hypocritical" and "blame shifting," saying that the West's collective failure to stop the war is now being pinned on India. He also noted growing unease from New Delhi over the United States' outreach to China. Former U.S. ambassador to the U.N. Nikki Haley urged the administration not to "burn a relationship with a strong ally like India," highlighting that China, which is Russia's top oil buyer, received a 90-day tariff pause in May. Prospects for a trade deal appear slim. Feigenbaum said Indian media, the public, and the opposition are urging the government not to show weakness. "Even if there's a deal, the trust is gone," he said. Former Indian Finance Secretary Subhash Garg echoed that sentiment: "Our positions are so different that there is very little possibility of a reconciliation." He suggested India should absorb the export hit and diversify to domestic or alternative markets. "If there is an American demand, they will buy and let [the] American consumers and the importers pay the tariff. Let them bear that." However, former Indian Labor Secretary Sumita Dawra expressed cautious optimism. She said India hopes for "positive outcomes" from trade talks later in August. She said while tariffs may have an impact on exports, India's domestic demand is "very high," and pointed at other trade agreements that the country has been making, such as the India-U.K. free trade agreement and the India-EU FTA, negotiations of which are expected to conclude later this year. "We're looking for a fair, mutually beneficial deal," Dawra said. "I'm sure our negotiators will do a great job."
AsiaOne
11-07-2025
- Politics
- AsiaOne
'We should not prejudge him': Ex-diplomat Bilahari Kausikan weighs in on Trump's ambassador-nominee to Singapore, Singapore News
Retired diplomat Bilahari Kausikan has voiced his support for the nominee for the US ambassador to Singapore after his tough Senate confirmation hearing on Wednesday (July 9). Dr Anjani Sinha, an orthopaedics and sports medicine surgeon, drew sharp criticism after he repeatedly struggled to answer questions about Singapore. At one point, US Senator Tammy Duckworth told him he was "unqualified" for the job and that he should "shape up and do some homework". Amidst the questioning from Singaporeans on Dr Sinha's suitability to the role, Kausikan said in a Facebook post on Thursday (July 10): "We should treat the new ambassador with courtesy and respect and not prejudge him." Kausikan said that if confirmed as ambassador to Singapore, Dr Sinha is "certainly better than the normal" US State Department "types" who are "despised" by Trump's loyal supporters in his "Make America Great Again" movement. "In any case, what's the advantage for us to join the braying anti-Trump pack?" he added. Kausikan, former chairman of the Middle East Institute in the National University of Singapore, cited Richard Kniep, a former US envoy to Singapore, who served from 1978 to 1980 under former US President Jimmy Carter. He said that Kniep was "viciously humiliated" during his confirmation hearing but delivered for Singapore when it counted. Kniep helped to get Singapore an exemption from Carter's policy of not introducing new weapons systems into regions where they did not already exist and enabled Singapore to upgrade its air defences. Like Kniep, who had close political ties to Carter, Kausikan suggested that Dr Sinha's personal relationship with Trump could serve Singapore's interest. While not much is known about Dr Sinha, Bloomberg reported in 2016 that he is a well known around Trump International Golf Club in West Palm Beach, where the president plays when he is staying at nearby Mar-a-Lago Resort. In a post on Truth Social in April, Trump said: "Anji is a highly respected entrepreneur, with an incredible family. "The United States' relationship with Singapore is vital, and I have no doubt that Anji will strongly represent our nation's interests and put America first." In his introduction, Dr Sinha described himself as a "lifelong bridge builder". He added: "If confirmed, my duty will be to advance and implement the policies of the US, and to promote US interest in Singapore. "I look to expand and deepen our defence and security co-operation; economic and trade relationship (as well as) people-to-people ties." [[nid:720046]] chingshijie@
