Trump’s Tariffs Rattle India, PM Modi Vows to Protect Farmers
Thank you for reading this post, don't forget to subscribe!US President Donald Trump has escalated trade tensions by doubling tariffs on India, a move that has sent shockwaves through global markets. The new tariffs, which bring the total levy on many Indian goods to 50%, are in response to India’s continued purchase of Russian energy. The move is viewed as a pressure tactic, but its impact is already being felt across key Indian sectors.
India’s Defiant Response
Prime Minister Narendra Modi has responded with a defiant stance, stating that India will not compromise on the interests of its farmers and fishermen, and is “ready to pay a heavy price for it.” India’s Ministry of External Affairs (MEA) has called the tariffs “unfair, unjustified and unreasonable,” pointing out the hypocrisy of Western countries that also continue to trade with Russia. While India is open to negotiations, the government is also exploring measures to support affected exporters and is reportedly preparing a ₹20,000 crore plan to counter the impact.
Economic Fallout and Expert Advice
The tariff hikes have created significant economic risks for India. Morgan Stanley warns that the country’s seafood industry, which is heavily reliant on US buyers, could face a massive ₹24,000 crore loss. The textile sector was also an immediate casualty, with shares of companies like Gokaldas Exports and KPR Mill plunging up to 5% following the announcement. The move also threatens India’s growth and budget projections, with experts cautioning that nominal growth could fall below the government’s target.
However, not all market watchers are pessimistic. Top analysts like Pankaj Tibrewal and Sridhar Sivaram are advising investors to stay calm and view any market dip as a potential buying opportunity. They argue that India’s long-term economic fundamentals remain strong and that the tariffs, while impactful, may be a short-term issue that could eventually be resolved through negotiations.
Other News in Focus
- Gold Prices Soar: Amid the trade tensions and growing anticipation of potential interest rate cuts by the US Federal Reserve, gold has surged, with prices in India reaching ₹1.02 lakh per 10 grams for 24k gold.
- Trump Targets Computer Chips: In a separate, but equally impactful move, President Trump announced a 100% tariff on imported semiconductors, threatening to drive up the cost of electronics globally.
- Musk’s AI Controversy: Elon Musk is once again pushing the boundaries of AI ethics with the “Spicy” mode on his new tool, Grok Imagine, which allows for the creation of NSFW images and videos.
- A Taste of Awadh: On a more local note, two women, Anubhuti Krishna and Sheeba Iqbal, are bringing the rich culinary heritage of Awadhi cuisine to Mumbai, offering residents a unique and authentic dining experience.
