Indo US Relations

Trade war 2.0 loading!



Tldr: Modi willing to yield certain concessions on Harley Davidson bikes - nothing on teslashit! Orange man goes on a full meltdown and Elmo backs him up - thinks bullying him into manufacturing in India is 'totally unfair'.

Elmo is playing games with gormint. He wants to export cars at 5-10% duties. All these 'media leaks' (based on unnamed sources) claiming they would launch $ 25k cars do not mean a thing. He is still bargaining - all this is pressure politics.

Reason why I kept saying that Trump 2.0 would be catastrophic for us.
 
You've sown the wind , now reap the whirlwind.
Whirlwind shall come for all who pose challenge to western supremacy if its China now and for us it maybe later. Atleast they are sowing winds hoping that the coalescing winds herald a counter storm. Hope we too develop same capability quickly. We won't get same largesse as China recieved from west in form industrialization.

Trump is two edged sword or proverbial with a sword. When he swings he hurts all even himself. Look at his $ 21 million USAID uttering, PM Modi be like:
1740244832045.webp
 
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What If Trump’s Tariff Mania Backfires?

The tariffs imposed by President Trump could very well backfire. Although he temporarily suspended the 25% tariffs on Canada and Mexico for 30 days, the broader impact of his trade policies remains uncertain. The very weapon Trump wields against exporting nations could end up hurting the U.S. economy instead.

Like it or not, every major exporting country has a plan to retaliate with countervailing tariffs on American exports. These retaliatory measures would effectively cancel out any advantage.

History provides clear examples of tariffs failing to deliver their intended results. Take the 25% tariff on steel imports in 2018—meant to bolster the U.S. steel industry. In reality, it had little impact, as steel production and employment levels remained virtually unchanged over the past six years. Another case is the 30% tariff on Chinese-made solar panels in 2018. China simply circumvented it by rerouting shipments through third countries, disguising the panels’ origins. Additionally, Trump’s own 10% tariff on certain Chinese imports in 2018 led to higher prices in the U.S. itself.

In today’s interconnected economy, retaliatory tariffs from Canada and Mexico could drive up prices in the U.S. by 4–6% on finished goods.

Trump’s team argues that tariffs will incentivize domestic production. The idea is that once imported goods become expensive enough, local manufacturers will find it profitable to produce them domestically. While this is a possibility, it is not a guaranteed outcome.

Ultimately, weighing the pros and cons of Trump’s proposed tariffs reveals that their most immediate impact will be inflation. The 10% tariff on Chinese imports, for example, will directly increase prices on consumer goods. Meanwhile, supply chain tariffs will have a delayed but inevitable effect, making products like cars and trucks more expensive in subsequent manufacturing cycles.

As a result, economists remain divided. Liberal economists largely oppose tariffs, citing their inflationary effects, while others argue that they could stimulate domestic manufacturing.
 
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