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EU Aims at Trump’s Core Support with Multi-Billion Dollar Counter-Tariffs – Channel 4 News


12 Mar 2025

European Commission President Ursula von der Leyen stated that the EU must take action “to safeguard consumers and businesses.”

EU Aims at Trump’s Core Support with Multi-Billion Dollar Counter-Tariffs – Channel 4 News
EU Aims at Trump’s Core Support with Multi-Billion Dollar Counter-Tariffs – Channel 4 News
European Commission President Ursula von der Leyen

The EU plans to direct €26 billion towards targeting Republican strongholds through ‘counter-measures’ in response to tariffs enacted by Donald Trump.

Today, US trade tariffs of 25 percent on all global imports of steel and aluminum began to take effect.

“We firmly believe that in a world filled with geo-economic and political uncertainties, burdening our economies with such tariffs is not in our shared interest,” European Commission President Ursula von der Leyen remarked in a morning briefing.

She emphasized that the EU must act “to safeguard consumers and businesses.”

A senior EU official noted that counter-tariffs amounting to €26 billion will primarily target Trump’s closest allies, hitting products that carry significant symbolic weight.

Products subject to EU tariffs will include home appliances like refrigerators and lawn mowers, wood products vital to Republican states such as Virginia and Alabama, and agricultural items like soybean, beef, and chicken, which are critical for Nebraska and Kansas.

“These are predominantly Republican and red states, and that’s by design,” stated an EU source.

The US previously imposed tariffs on EU steel during Trump’s first term. The EU’s counter-measures had been paused due to an agreement with President Biden but now they will be reinstated.

According to the European Commission, these tariffs—which include items like Harley Davidson motorcycles, Tennessee whiskey, and Levi jeans—are expected to cost the US approximately €4.5 billion.

Furthermore, a larger wave of tariffs ranging from €18 to €21 billion is set to be enacted in mid-April unless Trump retracts his tariffs.

A half-empty shelf of American whiskey in Toronto. The EU is also launching countermeasures to target American alcohol The Canadian Press/Shutterstock
A half-empty shelf of American whiskey in Toronto. The EU is also launching countermeasures to target American alcohol The Canadian Press/Shutterstock
A half-empty shelf of American whiskey in Toronto. The EU is also launching countermeasures to target American alcohol.

The European spirits sector expressed outrage over the news that it would be entangled once again in a trade conflict, which fundamentally revolves around a surplus of steel and metals globally.

“Once more, our spirits are collateral damage in a separate trade dispute,” remarked Pauline Bastidon from the trade association, Spirits Europe.

“We do not comprehend how this will contribute to resolving the larger, unrelated steel and aluminum dispute.”

The US has imposed these tariffs citing national security grounds, referencing legislation from the 1960s.

US Secretary of State Marco Rubio claimed that the US is implementing tariffs to “develop domestic capabilities.”

US Secretary of State Marco Rubio
US Secretary of State Marco Rubio
US Secretary of State Marco Rubio

“Without steel and aluminum, one cannot construct warships or planes,” he added.

“The US administration has adopted a detrimental course of unjustified tariffs, leaving us with no options but to retaliate,” said the EU’s Trade Commissioner, Maroš Šefčovič.

However, “we will remain open to discussions,” Ursula von der Leyen stated, as she has yet to have a meeting with President Trump.

Canada and Mexico bore the brunt of Trump’s tariffs upon his return to the White House and are now also implementing countermeasures.

This afternoon, Canada announced it would be imposing close to 30 billion Canadian dollars (approximately €20 billion) in counter tariffs on the US.

Canadian Finance Minister Dominic LeBlanc, Foreign Affairs Minister Melanie Joly, and Innovation, Science and Industry Minister Francois-Philippe Champagne (right to left)
Canadian Finance Minister Dominic LeBlanc, Foreign Affairs Minister Melanie Joly, and Innovation, Science and Industry Minister Francois-Philippe Champagne (right to left)
Canadian Finance Minister Dominic LeBlanc, Foreign Affairs Minister Melanie Joly, and Innovation, Science and Industry Minister Francois-Philippe Champagne (right to left)

An EU source indicated that although it is in communication with global partners, including Canada, its response to the US is not part of a coordinated initiative.

The UK has adopted a different approach and has not yet initiated any retaliatory tariffs against the US. British Prime Minister Sir Keir Starmer affirmed that “we will keep all options open.”

The UK aims to negotiate a mini trade agreement with the US, while Starmer works to maintain a favorable relationship with President Trump.

Furthermore, unlike the EU, the UK does not face a trade deficit with the US.

“I am disheartened to witness global tariffs concerning steel and aluminum,” Starmer expressed in the House of Commons earlier.

“We will approach this thoughtfully.”

When questioned about the UK’s decision to refrain from reacting, an EU official remarked that each country exercises its “sovereignty and considers its own interests” in making decisions.

“However, it is evident that Canada’s response and the EU’s response are perhaps making better progress in discussions with the United States.”

Watch more here:

US share prices drop as markets react to Trump’s tariffs
Trump chastises Canada for rising electricity prices
Canada’s next prime minister takes a stand against Trump threats

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Trump’s Tariffs May Impact Indian Markets, But These Goods Will See Price Drops: iPhones and Harley Davidson Bikes Priced At Rs…

US President Donald Trump has been alerted that reciprocal tariffs will be placed on Indian goods, indicating that the US will match the import duties imposed by India on American products.

Trump’s Tariffs May Impact Indian Markets, But These Goods Will See Price Drops: iPhones and Harley Davidson Bikes Priced At Rs…
(File)

Trump Tariffs: US President Donald Trump has unveiled reciprocal tariffs on imports from various nations, including India, effectively initiating a tariff dispute that could alter global trade dynamics. Trump’s tariffs, set to take effect from April 2, are poised to impact Indian markets adversely, yet American products such as iPhones, Harley Davidson motorcycles, and laptops may become more affordable, offering Indian consumers access to high-quality goods.

Why will American-made goods become more affordable?

Donald Trump has been warned that the US will implement reciprocal tariffs on Indian products, meaning that the US will levy the same import duties on Indian goods as India has placed on American imports. Presently, India applies up to 110% import duties on American products, and Trump is urging New Delhi to significantly reduce these ‘excessive’ tariffs, thus allowing US products to better compete with local offerings as they will be priced more attractively.

Which products will see price reductions?

Should India and the US finalize a new trade agreement, India might lower import duties on American items including electronic devices, steel, engines, tires, spare parts, medical supplies, and several food products such as almonds, walnuts, and wine. This could result in popular gadgets like Apple iPhones, laptops, and smartwatches, along with vehicle parts and health-related products, becoming less expensive in India.

Furthermore, high-end motorcycles like Harley Davidson will also become more affordable, given that India currently imposes a 100% import tariff on American automotive brands. In the electronics sector, products from renowned US tech companies like Apple, Dell, and Hewlett-Packard could see a price drop.

The cost of dairy items like cheese and butter may also decrease, offering relief to consumers.

What impact could tariff reductions have on Indian industries?

While lower tariffs on American goods will make them more affordable, increasing their uptake in the Indian market, this new trade policy will also profoundly affect India’s domestic products, which will now face competition from international brands.

Experts suggest that American brands may dominate the electronics market, while Indian car manufacturers might experience financial setbacks if tariffs on auto parts are reduced. Additionally, India’s pharmaceutical and dairy sectors might encounter challenges. However, if the central government strikes an equilibrium, it could protect local businesses from losses while benefiting consumers.

If auto parts become less expensive, Indian automotive manufacturing firms could face financial difficulties. The pressure on the pharmaceutical sector and the dairy industry will also rise. Nevertheless, if the government finds the right balance, it could benefit Indian consumers while simultaneously safeguarding local industries from setbacks.




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India Trade Agreement Crucial for Donald Trump’s Export Expansion Efforts

India Trade Agreement Crucial for Donald Trump’s Export Expansion Efforts

US President Donald Trump, right, speaks with Prime Minister Narendra Modi during a press briefing in the East Room of the White House, Washington, on February 13, 2025. (AP)

NEW DELHI: Establishing a bilateral trade agreement is essential not only for India but also for the US, as it aligns with Donald Trump’s aim to enhance production and exports from America. A comprehensive reduction in duties would allow manufacturers of automobiles, bourbon, and mobile devices to import products into India from the most competitive regions, likely including China or Southeast Asia, rather than relying on American factories.
Neither Harley Davidson, a brand cherished by American presidents, nor Tesla, led by Trump’s advisor Elon Musk, manufactures their vehicles domestically.
Harley imports its motorcycles from its manufacturing facilities in Thailand, while Tesla, which is preparing to enter the Indian market, is expected to export its electric vehicles from Germany after being advised not to source them from China.
Companies often prefer alternative manufacturing locations due to geographic advantages that reduce freight costs or enable economies of scale. Furthermore, some are leveraging India’s existing free trade agreements to bring in products with zero duty.
Despite the ongoing discussions, Harley only produces the 440cc model in India through a partnership with Hero Moto. “The company has a substantial production base in Thailand that it relies on to import motorcycles into India. Besides the 440cc model manufactured locally, larger models such as the Pan America, Nightster, Street Glide, and Fat Bob are brought in from Thailand,” stated an analyst with expertise in international trade.
“Even if India eliminates the duties on motorcycle imports from the US entirely, Harley will continue to find it advantageous to source from Thailand as the proximity reduces freight expenses and shortens shipping times,” another analyst noted.
A bilateral trade agreement, for which Commerce and Industry Minister Piyush Goyal is currently in Washington, could offer tariff benefits for both India and the US, enabling factories and farmers in both countries to export directly.
The government has demonstrated its intent for lower tariffs by reducing duties on imported motorcycles and bourbon. Although this reduction applied to all imports, it was in response to Trump’s criticisms of India’s “high tariffs,” but did not result in substantial benefits for American factories.
Out of $2.6 million worth of bourbon whisky imports, only $780,000 originated directly from the US, with most products being sourced from other nations, some of which serve as bottling hubs.

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Modi and Trump’s Relationship Faces Challenges During US Visit | The Arkansas Democrat-Gazette

NEW DELHI — Prime Minister Narendra Modi’s enduring camaraderie with President Donald Trump is set for scrutiny as the Indian leader embarks on a Washington visit this Wednesday, aiming to sidestep tariffs that have impacted others along with looming threats of additional taxes on imports.

As a pivotal strategic ally of the United States, India has thus far managed to avoid new tariffs, and the two leaders have nurtured a personal relationship. Modi, a nationalist facing criticism over India’s erosion of democratic principles, has welcomed Trump back to the White House, hoping to recalibrate India’s ties with the West amid ongoing tensions regarding Russia’s war on Ukraine.

Nevertheless, Trump has often labeled India as a “tariff king” and has pressured the country on the issue of migrant deportations. In reply, New Delhi has shown a readiness to reduce its own tariffs on U.S. goods, accept the return of Indian citizens, and increase purchases of American oil.

However, with tariff threats on the horizon, the critical question remains regarding the extent to which a strong rapport between the two leaders will influence negotiations and how far India will be willing to compromise to strike a deal.

Modi had fostered a effective working relationship with Trump during the latter’s first term, and the two have the potential to enhance areas of mutual interest while “minimizing points of contention without yielding on central national interests,” as noted by Meera Shankar, India’s former ambassador to the United States.

“Compared to other partners, most have their reciprocal lists prepared from the outset, as it provides leverage during negotiations,” Shankar added, expressing optimism that India will “strike the right balance between assertiveness and adaptability” regarding the tariff issue.

With his ruling Hindu nationalist party freshly victorious in a high-stakes state legislature election last weekend in India’s federal territory, including New Delhi, Modi stated before departing for Washington that the visit presents an “opportunity to build on” the cooperation established during Trump’s first term and to “deepen our partnership” across sectors such as technology, trade, defense, and energy.

During a conversation with Modi in January, Trump emphasized the necessity for India to increase its acquisition of American-made military equipment and to address the trade imbalance. In the previous year, the U.S. imported $50 billion more in goods from India than it exported to the country.

A summary from the White House at that time reflected Trump’s insistence on the importance of India boosting its procurement of American-made security products and progressing towards a fair bilateral trading relationship.

Earlier this month, India accepted the repatriation of 104 migrants who were flown back on a U.S. military aircraft, marking the first such flight to India as part of a crackdown initiated by the Trump administration.

Additionally, Modi’s administration has reduced certain elevated tariffs, including those on some Harley-Davidson motorcycles, cutting them from 50% to 40%. In 2023, India also eliminated retaliatory tariffs on U.S. almonds, apples, chickpeas, lentils, and walnuts.

“We can also anticipate that Modi will propose purchasing additional American (natural) gas to help mitigate the U.S. trade deficit,” commented Lisa Curtis, director of the Indo-Pacific security program at the Center for a New American Security, a Washington-based think tank. “This should provide some relief.”

CHINA RELATIONS

India is viewed as essential to the U.S. strategy aimed at containing China in the Indo-Pacific and is set to host a summit with a coalition known as the Quad — comprising the U.S., India, Japan, and Australia — later this year.

However, should there be a warming of relations between Washington and Beijing under Trump, India may need to reassess its position.

“Trump’s engagement with China could complicate India’s efforts to foster American interests in utilizing India as a counterweight to China, while avoiding becoming a proxy,” stated Happymon Jacob, founder of the New Delhi-based Council for Strategic and Defense Research.

India has made strides with China and agreed in December to seek resolutions for their protracted border disputes in the Himalayas following a military standoff that began with a deadly clash in 2020.

“Even a tactical adjustment between the U.S. and China carries implications for India,” Shankar remarked.

The U.S. stands as India’s largest trading partner, with a $50 billion trade deficit favoring India. The trade between India and the U.S. in goods and services amounted to approximately $190.1 billion in 2023. According to India’s External Affairs Ministry, U.S. exports to India reached nearly $70 billion, while imports stood at $120 billion.

Though India relies on Russia for nearly 60% of its defense supplies, the conflict in Ukraine has heightened concerns over future procurement, prompting New Delhi to explore options with the U.S., Israel, Britain, and others.

A recent agreement will enable U.S.-based General Electric to collaborate with India’s Hindustan Aeronautics on manufacturing jet engines for Indian aircraft domestically, alongside the sale of U.S.-made armed MQ-9B SeaGuardian drones.

Since 2008, India has procured over $20 billion in U.S.-origin defense equipment.

“This could be a domain where we witness synergies with the U.S.,” Shankar mentioned, adding that Trump will likely encourage India to acquire more defense assets.

Raja Mohan, an analyst at the Institute of South Asian Studies in Singapore, stated that Modi’s visit provides a timely opportunity to enhance Indo-U.S. relations.

“India’s diplomatic acumen will be put to the test, so the existing goodwill between Trump and Modi must translate into tangible results,” Mohan concluded.

Modi and Trump’s Relationship Faces Challenges During US Visit | The Arkansas Democrat-Gazette FILE – Indian police officials escort immigrants, wearing masks, deported from the United States, who were among those who arrived in a U.S. military plane the previous day in Amritsar, upon their arrival at the Ahmedabad airport in India, Feb. 6, 2025. (AP Photo/Ajit Solanki, File)
photo FILE – President Joe Biden greets from left, Australia’s Prime Minister Anthony Albanese, India’s Prime Minister Narendra Modi, and Japan’s Prime Minister Fumio Kishida, at the Quad leaders summit at Archmere Academy in Claymont, Del., Sept. 21, 2024. (AP Photo/Mark Schiefelbein, File)
photo FILE – An Indian man parks his Harley Davidson Fat Boy motorcycle in New Delhi, India, March 1, 2017. (AP Photo/Manish Swarup, File)
photo FILE – U.S. President Donald Trump and Indian Prime Minister Narendra Modi embrace after giving a joint statement in New Delhi, India, Feb. 25, 2020. (AP Photo/Manish Swarup, File)
photo FILE – Indians crowd around Harley Davidson motorcycles at their stall during Auto Expo in New Delhi, India, Jan. 7, 2012. (AP Photo/Mustafa Quraishi, File)
photo EDITORS AND LIBRARIANS: KILL FROM YOUR SYSTEMS, ARCHIVES AND PUBLISHED PLATFORMS AP PHOTO DEL106 (IMAGE ID 25042378453065), SLUGGED INDIA US MODI AND TRANSMITTED ON FEB. 12, 2025. THE PHOTO HAS BEEN TONED IN A WAY THAT DOES NOT MEET AP’S STANDARDS. NO REPLACEMENT PHOTO WILL BE SENT. – FILE – Jaspal Singh, 36, one of the Indian immigrants deported by the United States talks to his relatives upon his return to his home near Amritsar, India, Feb. 6, 2025. (AP Photo/Prabhjot Gill, File)
photo FILE – U.S. President Donald Trump offers floral respects, with first lady Melania Trump standing beside him, at Raj Ghat, the memorial for Mahatma Gandhi, in New Delhi, India, Feb. 25, 2020. (AP Photo/Alex Brandon, File)
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From Riding a Harley Davidson in California to Starring in Star Trek: Everything You Need to Know About the King of Jordan Who ‘Rejected’ Trump’s Gaza Plan

From riding a Harley Davidson in California to appearing on Star Trek, all you need to know about the King of Jordan who ‘rejected’ Trump’s ‘Gaza plan’

Indeed, it is only appropriate for a King to stand firm in his beliefs!
King Abdullah of Jordan has ‘rejected’ the proposal from US President Donald Trump to relocate Palestinians to Jordan. The King, who met Trump in the White House to discuss relocating Palestinians from Gaza to Jordan and Egypt, stated on X that Jordan remains “steadfast” against “the displacement of Palestinians in Gaza and the West Bank.” This is the collective position of the Arab world.

In his post on X, he asserted, “I emphasized that my primary commitment is to Jordan, its stability, and the welfare of Jordanians. I reiterated Jordan’s unwavering stance against the displacement of Palestinians in Gaza and the West Bank. This stance is shared across the Arab nations.”
Earlier this week, Trump suggested that he could halt aid to Jordan and Egypt unless they accepted Palestinians from Gaza.

Previously, Abdullah informed Trump that he could accept 2,000 Palestinian children from Gaza who are critically ill or suffering from cancer. However, the king later reaffirmed his long-standing opposition to the idea of displacing millions of Palestinians from their homes, as suggested by Trump.

Here’s everything you need to know about the King who has managed to say ‘no’ to Trump.

Who is the King of Jordan?

King Abdullah II bin Al-Hussein has been the King of Jordan since ascending the throne in 1999 and is part of the Hashemite family, the ruling royal family of Jordan since 1921.

Born in Amman, Abdullah is the first child of King Hussein and his wife, Princess Muna. As the king’s first-born, Abdullah was the heir apparent until Hussein transferred the title to his uncle, Prince Hassan, in 1965.
Abdullah began his education in Amman and continued abroad. He launched his military career in 1980 as a training officer in the Jordanian Armed Forces, eventually leading the Special Forces in 1994 and rising to the rank of major general by 1998.

In 1993, Abdullah married Rania Al-Yassin, with whom he has four children: Crown Prince Hussein, Princess Iman, Princess Salma, and Prince Hashem.
Just weeks before his death in 1999, King Hussein named Abdullah as his successor, and Abdullah took on the mantle of leadership.

King on the throne:

Abdullah worked alongside his father on various missions and international meetings during his fathers reign. King Hussein passed away due to complications from non-Hodgkin lymphoma in February 1999 after ruling for 47 years through turbulent times marked by the Arab–Israeli conflict and the Cold War. After the announcement of his father’s death, Abdullah quickly appeared at an urgent session of the Jordanian parliament. His uncles, Hassan and Mohammed, entered the assembly before him. In Arabic, he took the same oath his father did fifty years prior: “I swear by Almighty God to uphold the constitution and to be faithful to the nation.”
The session was opened by the Senate Speaker Zaid Al-Rifai, who tearfully recited Al-Fatiha (the opening chapter of the Quran), invoking divine blessings: “God, save His Majesty… God, guide him and protect him.”
Abdullah’s formal investiture took place on June 9, 1999, which was followed by a reception at Raghadan Palace attended by 800 dignitaries and a motorcade through Amman with the newly appointed 37-year-old king and his 29-year-old wife, Rania.

Jordan king (1)

Married life and family:

King Abdullah first met Rania Al-Yassin at a dinner in January 1993, and by June of that year, they were married at Zahran Palace. In 1999, Rania became the youngest queen globally.
The royal couple has four children:

Jordan king (2)

The eldest is Crown Prince Hussein, who wed Rajwa Al Saif in 2023 at Zahran Palace in Amman, and has a daughter named Princess Iman bint Al Hussein. The King and Queen have three additional children – Princess Iman, who married Jameel Alexander Thermiótis in 2023 at Beit Al Urdun Palace in Amman, Princess Salma, and Prince Hashem.
Notably, King Abdullah’s half-sister, Princess Haya, was previously married to the ruler of Dubai, Sheikh Mohammed Al-Maktoum.

Interests and hobbies:

Beyond his royal duties, King Abdullah has passions for skydiving, motorcycling, and water sports, and he collects ancient weapons as a hobby. However, he noted that he is no longer able to skydive after becoming king. He has been seen riding a Harley-Davidson through northern California.

The King is also an admirer of the science-fiction series Star Trek! In 1996, he made a brief appearance in the Star Trek: Voyager episode “Investigations,” in a non-speaking role. His passion for cinema led to the establishment of the Red Sea Institute of Cinematic Arts in Aqaba, in collaboration with the University of Southern California School of Cinematic Arts, in September 2006. When the producers of Transformers: Revenge of the Fallen chose to shoot in Jordan, Abdullah arranged for military helicopters to assist in transporting equipment to Petra. In 2016, he honored the cast of Theeb, the first Jordanian film nominated for an Oscar.
Abdullah also has a taste for stand-up comedy; when comedians Gabriel Iglesias, Russell Peters, and others performed in Jordan for a 2009 comedy festival, he invited them for dinner.

Jordan king (3)

In 2010, Abdullah released his autobiography, Our Last Best Chance: The Pursuit of Peace in a Time of Peril, detailing the first decade of his reign, mirroring his father’s 1962 book, Uneasy Lies the Head. The book offers insights into his upbringing and behind-the-scenes stories of his interactions with political leaders.

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Strategies for India to Navigate Donald Trump’s Tariff Challenges

In December of the previous year, US President Donald Trump mentioned that India imposes “high” tariffs, emphasizing his plan to enforce reciprocal tariffs in response to the taxes New Delhi places on certain American imports. With Trump back in the White House, the prospect of tariffs casts a shadow over India. The US ranks as India’s largest trading partner, with India enjoying a trade surplus. In 2023-24, India’s exports amounted to $77.51 billion compared to $42.2 billion in imports during the last fiscal year. From April to December of this fiscal year, India’s exports to the US increased by 5.57% to approximately $60 billion, while imports rose by about 2% to $33.4 billion. Historically, the US has highlighted concerns over high import duties on Harley Davidson bikes and limited access to medical devices, equipment, and dairy products in India.

Following Trump’s election victory last November, India initiated a comprehensive sector-wise assessment, devising multiple scenarios to brace for potential tariff hikes on exports to the US under Trump’s administration, as reported by ET in December.


India’s prospects under the Trump administration

Trump’s memorandum titled “America First Trade Policy,” released on his first day in office, could present an opportunity for India. The memo instructed the United States Trade Representative (USTR) to pinpoint countries to engage in trade agreements, either bilaterally or within specific sectors, to enhance export access for various American entities. The Indian government is currently reviewing the memo. “We are analyzing the memo and assessing its implications before creating any strategy… At this stage, based on an initial reading, I don’t see anything overly concerning. Our evaluations have yet to materialize into action,” officials informed PTI. The government is also waiting for the official confirmation of the key trade positions in the US.

Indian and US diplomats aim to organize a meeting between Prime Minister Narendra Modi and Trump in Washington in February, according to sources who spoke to Reuters. However, the likelihood of a February meeting remains uncertain. There is a possibility for a bilateral discussion later in the year, especially when the Quad leaders—comprising India, Australia, Japan, and the US—reconvene at an annual summit hosted by India.

Indian officials are contemplating a limited trade agreement with the US within one scenario, according to Bloomberg sources. The proposed plan would involve lowering certain “most-favored nation” tariffs imposed on countries with which India lacks a bilateral trade deal.

Last month, Reuters reported that India is gearing up to propose tariff reductions on certain agricultural and other goods primarily imported from the US, aiming for a more extensive trade and investment deal once Trump assumes office. To address Trump’s proposal of a “reciprocal tax” on Indian goods due to high tariffs, some officials from the Indian commerce ministry are contemplating reductions on specific items like pork, as revealed by a senior government source. Currently, India enforces a 45% import tariff on pork, predominantly sourced from the US. Additionally, tariffs could see reductions on premium medical devices such as pacemakers and luxury motorcycles like Harley Davidson, according to an official with direct knowledge of trade matters, who cited existing tariffs ranging from 25% to 60% on those products. To alleviate Trump’s concerns regarding the trade deficit, officials have also suggested increasing purchases of LNG and defense equipment from the US, as reported by Reuters.

“This presents an opportunity,” noted Arvind Virmani, a government advisor and member of the state-run policy think tank NITI Aayog, speaking to Reuters. “Both the US and India would benefit from shifting more critical and sensitive manufacturing to India rather than relying on China,” he added, suggesting a more ambitious “preferential trade cum investment deal” than the previously discussed mini-trade agreement, which could be mutually beneficial for both nations.


Restarting India-US discussions from a prior standpoint

During Trump’s initial term, a proposed mini-trade agreement aimed at addressing trade discrepancies and enhancing trade relations through limited deals stalled due to disagreements over tariffs, access to markets, and intellectual property. The Biden administration similarly is not keen on a free trade agreement. India now seeks a broader agreement, as reported by Reuters, offering substantial concessions such as production-linked incentives for logistics companies and support for logistics sector.

Kenneth I. Juster, a distinguished fellow at the Council on Foreign Relations, and Mark Linscott, a senior advisor at the U.S.-India Strategic Partnership Forum and the Asia Group, expressed in ‘Foreign Policy’ that this time around, Modi and Trump should take advantage of the opportunity to forge a significant bilateral agreement.

They noted that although US-India economic relations have consistently advanced throughout the 21st century, they have not met expectations in comparison to the remarkable progress made in nearly every other aspect of the bilateral partnership. “However, there are grounds for optimism. Trump enjoys negotiating deals and is eager to enhance the US economy. His tariffs may serve as leverage to unlock foreign markets for US companies, creating jobs related to exports and reducing the bilateral trade deficit. Modi is a strategic thinker focused on fostering India’s economy and expanding its international role,” they stated.

Strategies for India to Navigate Donald Trump’s Tariff Challenges“Both the United States and India aim to strengthen their economic influence in the Indo-Pacific region and mitigate China’s economic dominance. The moment is opportune, and the incentives exist for both leaders to overcome challenges and finalize a major agreement.”

(With contributions from agencies)

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Trudeau Encourages US Consumers to Reflect on the Impact of Trump’s Tariff Threats

Trudeau urges US consumers to consider the harm of Trump's tariff threats

On October 11, 2017, President Donald Trump and Canadian Prime Minister Justin Trudeau smiled for a photo during Trudeau’s White House visit. (AP Photo/Carolyn Kaster, File)

In a statement on Sunday, outgoing Prime Minister Justin Trudeau of Canada indicated that President-elect Donald Trump’s comments about Canada potentially becoming the “51st state” have diverted focus away from the detrimental effects that significant tariffs would have on U.S. consumers.

Trump has threatened a 25% tariff on all imports from Canada.

“Canada becoming the 51st state isn’t going to happen,” Trudeau mentioned in an MSNBC interview. “Yet, discussions are centered around that, rather than the consequences of a 25% tariff (on) steel and aluminum entering the U.S.”



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Trudeau further stated on MSNBC: “No U.S. citizen wants to incur a 25% increase in costs for electricity or oil and gas from Canada, which is a matter that I believe requires greater consideration.”

Trump has claimed that merging Canada with the U.S. would lead to lower taxes and eliminate tariffs.

“I recognize that as a deft negotiator, he enjoys keeping people off balance,” Trudeau remarked regarding Trump’s economic threats aimed at transforming Canada into the 51st state.

Furthermore, Trump has inaccurately referred to the U.S. trade deficit with Canada—a country rich in natural resources that supplies oil and other commodities—as being a subsidy.

Canadian officials have indicated that should Trump proceed with his proposed tariffs, Canada might respond with retaliatory tariffs on American goods such as orange juice, toilets, and certain steel products.

During Trump’s initial term, Canada retaliated against Trump’s tariffs on Canadian steel and aluminum with its own tariffs on U.S.-produced items like bourbon, Harley Davidson motorcycles, and playing cards.

“He was elected to enhance the lives of all Americans and to support American labor,” Trudeau expressed regarding Trump. “These (tariffs) are measures that will ultimately harm them.”

Last week, Trump stated that the U.S. does not rely on Canada for oil or other resources. However, approximately 25% of the daily oil consumption in the U.S. is sourced from Canada. The energy-abundant province of Alberta supplies around 4.3 million barrels of oil to the U.S. each day.

According to the United States Energy Information Administration, while the U.S. consumes 20 million barrels of oil daily, it produces approximately 13.2 million barrels per day.

Canada, a founding member of NATO with a population exceeding 40 million, also serves as the leading export market for 36 U.S. states. Around $2.7 billion worth of goods and services cross the border each day.

Trump has mentioned that he might reconsider his tariff threats if Canada improves its security management at the Canada-U.S. border, which he and his advisors view as a potential pathway for undocumented migrants.

Trudeau asserted that less than 1% of illegal migrants and fentanyl come into the U.S. from Canada.

Following a meeting in November at Mar-a-Lago, Trump’s private property in Florida, Trudeau declared an uptick in funding for border security, showing his willingness to address Trump’s concerns in hopes of appeasing him regarding the tariff threats.

As Trudeau navigates the challenges posed by Trump’s second term and his party’s poor polling, the struggling Canadian prime minister announced his resignation last Monday. He is set to be replaced on March 9, when his Liberal party will select a new leader.


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Trudeau Appeals to US Consumers to Reflect on the Impact of Trump’s Tariff Threats

Trudeau highlights the concerns for U.S. consumers regarding Trump's tariff threats

President Donald Trump and Canadian Prime Minister Justin Trudeau captured at the White House on Oct. 11, 2017. (AP Photo/Carolyn Kaster, File)

On Sunday, Canada’s outgoing Prime Minister Justin Trudeau mentioned that President-elect Donald Trump’s comments about Canada potentially becoming the “51st state” have diverted focus from the significant impact that high tariffs would have on American consumers.

Trump has proposed to impose a 25% tariff on all imports from Canada.

“The 51st state, that’s not on the table,” Trudeau stated in an MSNBC interview. “Yet, the conversation has shifted from discussing the real effects of a 25% tariff on steel and aluminum imports to entertainment about statehood.”



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Trudeau emphasized: “No American citizen wants to see a 25% hike in costs for electricity or oil and gas from Canada. This is an important topic that needs more attention.”

Trump has claimed that should Canada become part of the U.S., taxes would decrease and tariffs would be eliminated.

“I recognize that as a skilled negotiator, he tends to keep people guessing,” Trudeau remarked about Trump’s economic coercion threats aimed at making Canada the 51st state.

Additionally, Trump has inaccurately labeled the U.S. trade deficit with Canada, a resource-rich neighbor supplying the U.S. with commodities such as oil, as a form of subsidy.

Officials in Canada have stated that should Trump enact his proposed tariffs, Canada might retaliate with tariffs on U.S. products like orange juice, toilets, and some types of steel.

During Trump’s first term, in response to tariffs on Canadian steel and aluminum, Canada imposed its own tariffs on American goods including bourbon, Harley Davidson motorcycles, and playing cards.

“He was elected to make life easier for all Americans and support American workers,” Trudeau said of Trump. “However, these (tariffs) will ultimately harm them.”

Last week, Trump stated that the U.S. doesn’t require oil or any other resources from Canada. However, approximately 25% of the oil the U.S. consumes daily is sourced from Canada, with Alberta exporting 4.3 million barrels of oil per day to the U.S.

Data from the U.S. Energy Information Administration indicates that the nation consumes about 20 million barrels of oil daily, while producing around 13.2 million barrels.

Canada, as a founding NATO member with a population exceeding 40 million, stands as the leading export market for 36 U.S. states. Every day, nearly $2.7 billion in goods and services are traded across the border.

Trump has expressed that he would reconsider his tariff threats if Canada improved its border security management, which he and his team view as a potential access point for undocumented migrants.

Trudeau asserted that less than 1% of illegal immigrants and fentanyl entering the U.S. are from Canada.

Following a meeting with Trump last November at Mar-a-Lago, the president-elect’s Florida residence, Trudeau announced an intention to boost border security funding, hoping to address Trump’s concerns to dissuade a tariff imposition.

Amid challenges posed by Trump’s upcoming second term and his party’s poor polling numbers, the beleaguered Prime Minister of Canada announced his resignation last Monday. He is expected to be succeeded on March 9, when his Liberal party plans to choose a new leader.


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UK May Counter Trump’s Actions with Tariffs

The UK has prepared retaliatory tariffs on iconic US products, including Harley Davidson motorcycles, for immediate implementation in the event of a trade war with Donald Trump.

The British government is devising strategies to counteract any potential Trump tariffs on UK exports. Officials have advised ministers that they can quickly adapt former EU measures against the US without requiring additional investigations, Caliber.Az reports via foreign media.

After Brexit, the UK retained tariffs from the European Union that had been imposed on US products during Trump’s first term, as a response to his extensive tariffs on European steel. Last month, it was reported that the EU also has a similar set of measures prepared for activation.

The UK tariffs were maintained after Britain officially exited the EU in February 2020, affecting iconic American goods like Jack Daniel’s bourbon, Levi’s jeans, and Harley Davidsons.

UK May Counter Trump’s Actions with Tariffs

Current and former government officials have indicated that the UK could swiftly reinstate these tariffs on the US if Trump follows through on his threats to impose 10 to 20 percent tariffs on all foreign imports, without encountering opposition from Britain’s trade regulator. Publicly, the UK government prefers to avoid discussions about a potential retaliatory trade war with the US, despite Trump’s tariffs on British imports.

Reintroducing tariffs on motorcycles and other goods could heighten tensions between the two nations and breach the agreement made between the UK and the Biden administration to suspend such measures initially. Within the government, ministers are optimistic while also preparing for adverse outcomes.

A Cabinet minister, speaking anonymously to express their views, remarked, “US tariffs are potentially very significant for us,” further stating, “Trade constitutes only about 10 percent of their GDP, but it’s around 30 percent for the UK.” They emphasized that the UK’s primary objective is to convince the president-elect not to impose tariffs on British imports from the outset.

The Cabinet minister also suggested that should Trump take action, the UK government would prefer to negotiate a deal rather than resorting to retaliatory measures, as was done previously.

By Naila Huseynova