reciprocal tariffs

US courts have again blocked Trump's 10% global tariffs, deeming them unauthorized. This ruling, following earlier tariff invalidations, signals a return to WTO's MFN rates. For India, this policy instability raises concerns, prompting advice to pause Free Trade Agreement talks until US trade systems stabilize, preventing one-sided deals.

Government sources indicate no immediate plans to hike gold and silver import duties, despite calls to curb non-essential gold purchases. Meanwhile, India anticipates US trade talks addressing pending issues, including a Section 301 probe, though a comprehensive deal remains distant. India has contested US allegations of structural overcapacity, urging the termination of the investigation.

Global powers are now vying for India's attention, recognizing its growing influence. While the US seeks to bolster trade, India has been actively forging significant trade agreements, positioning itself as a reliable and indispensable partner in a shifting geopolitical landscape.

In a strategic move, the US is pushing to wrap up a trade deal with India that seeks to expand market access and lower trade obstacles, aiming for a remarkable $500 billion in trade by 2030. This agreement is set to bolster supply chain resiliency and attract foreign investments.

President Donald Trump is set to visit China from May 13-15 for talks with President Xi Jinping, focusing on easing trade tensions and discussing Iran. Broader issues like tariffs and Taiwan are also on the agenda. The visit aims to rebalance the relationship, prioritizing reciprocity and fairness for American economic independence.

Presidents Xi and Trump are set for a crucial summit, aiming for stability despite deep-seated issues like tech rivalry and Taiwan. While a trade deal might emerge, it won't end the underlying friction. China's focus on domestic chip production and its stance on Taiwan, deemed the 'biggest risk,' will also be key discussion points. The US may also expect China's mediation in ending the Iranian mess.

The US under Trump is intensifying pressure on Cuba, drawing comparisons to its Venezuela policy. However, experts believe Cuba's complex political structure and disciplined security apparatus make it a far riskier and potentially costlier challenge for Washington than Venezuela.

President Trump's visit to China is overshadowed by the Iran War, which has disrupted global energy supplies and impacted his approval ratings. While trade and Taiwan remain on the agenda, the protracted conflict in Iran presents a significant challenge, with the US struggling to achieve its war aims and facing a decline in superpower status.

India and the US concluded three days of trade talks in Washington, aiming to finalize an interim trade pact and advance negotiations for a broader bilateral agreement. Discussions covered market access, digital commerce, and economic security.

Under the proposed interim trade deal, the US has lowered tariffs on India from 50% to 18%. In August last year, Trump had imposed a 25% reciprocal tariff on India and an additional 25% penal tariff for India’s crude oil purchases from Russia.

Exporters and end consumers are not permitted to file claims directly, although some companies, such as FedEx, may opt to pass on the refunded amounts at their discretion.

India and the United States are nearing a bilateral trade agreement, with negotiators meeting in Washington this week to finalize the first phase. Officials indicate only a few issues remain unresolved, building on a framework announced in February. This renewed push aims to enhance market access and secure preferential treatment for India.

India and the US are resuming trade negotiations in Washington DC from April 20-22 to discuss the first phase of their bilateral trade agreement. The talks are being held under a revised framework following recent shifts in the US tariff regime, which have reduced India's previous trade advantages and necessitate recalibration of the agreement.

India and the US are nearing a bilateral trade agreement, with negotiators reporting significant progress and only a few issues remaining. Discussions are described as positive and productive, focusing on market access and tariff alignment. This potential deal, aimed at boosting trade between the two nations, is expected to be a win-win, marking a key milestone in economic ties.

India and the United States will resume trade talks next week in Washington. A delegation of Indian officials will meet their US counterparts. Discussions will focus on the first phase of a proposed bilateral trade agreement. Recent changes in US tariff policy necessitate a review of the earlier finalized trade structure.

The agreement had originally been expected to be signed in March, but developments in the Donald Trump tariff regime following a ruling by the Supreme Court of the United States have changed the circumstances.

Trump is attempting to rebuild his tariff regime using alternative legal avenues after the court ruled that his earlier reliance on emergency powers to impose duties was unconstitutional.

The US has imposed up to 100% tariffs on patented drugs and certain metals, aiming to boost domestic manufacturing. While India's generic drug exports are largely exempt, firms producing branded medicines or inputs for patented drugs may face pressure. Developed nations are expected to bear the brunt of these new measures.

The World Trade Organization's ministerial meeting in Cameroon will focus on reforming the 30-year-old body. The US and EU aim to expand talks to new issues and recognize plurilateral agreements, while India will advocate for farm trade reforms and preserve the WTO's core principles, prioritizing small farmers and policy space for developing economies.

As Trump announced the reciprocal tariffs, he explained that for purposes of fairness, the United States will impose the same tariff on each country whatever they charge, not more, not less. "They charge us a tax or tariff and we charge them the exact tax or tariff. Very simple," Trump said.

What does this latest disruption mean for the growth prospects of Asian economies that are in large part dependent on oil and energy imports. Since the start of the Middle East conflict, passage of ships through the Strait of Hormuz has been curtailed.