Thursday, August 07, 2025

Racist thuggery.

In July, "President Donald Trump said that India may be hit with a tariff rate of 20% to 25% but cautioned the final levy had still not been finalized as the two countries negotiate on a trade deal ahead of an Aug. 1 deadline." NDTV. However, "Tariffs are paid by US-based companies to US customs when they import goods from abroad. US consumers could see a range of products become more expensive if companies choose to raise prices to offset the higher costs of importing goods." NDTV. Indeed, "In the 12 months through June, the PCE (personal consumption expenditures) price index advanced 2.6% after increasing 2.4% in May." And "The US central bank...left its benchmark interest rate in the 4.25% to 4.50% range." Reuters. If Trump wants to cut imports through higher prices that is for US citizens to comment on. After all, "Finance Minister Arun Jaitley's Budget for 2018-19 proposed an increase in customs duty on a range of products - from fruit juice to mobile phones - to incentivize domestic value addition and boost the government's Make in India program." Mint. Again in Budget 2019-20, "Union Finance Minister Nirmala Sitharaman proposed hike in customs duty on 75 imported items to give a push to Make in India program of the Narendra Modi government." India Today. As a result, "In 2023-24, the trade-average weighted tariffs on imported goods in India stood at 12%, according to data published in the World Trade Profiles by the WTO, UNCTAD and ITC." "In fact, the lowest trade-average weighted tariffs India has had - 6.2% - was in 2013, the last full year of the Congress-led United Progressive Alliance (UPA) government." "Yet, India's total merchandise imports stood at $678 billion in 2023-24, about 1.5 times what it was in 2014." The Print. This was because the Make in India, announced by Mr Modi on 25 September 2015, was a total failure with the GDP share of manufacturing falling from 16.7% in 2013-14 to 15.9% in 2023-24. wikipedia. Then came the sudden demonetisation of Rs 1000 and Rs 500 banknotes on 8 November 2016 (wikipedia) which failed miserably in its twin objectives of eliminating black money and counterfeit currency. Instead, "India's large cash economy was badly hit." BBC. So, while Trump's complaint of higher tariffs in India may have been somewhat justified, his additional 25% tariffs on India for buying Russian oil (TOI) is neo-colonial thuggery and a racist attempt to destroy Russia. Trump is just continuing the genocidal history of the US while the world mourns the 80th anniversary of the Hiroshima and Nagasaki holocaust on 6 and 9 August 1945. (CTBTO). Since then, the US has been using its military might around the world (infoplease.com), killing millions of innocent civilians with complete impunity. This time it is trying to destroy a people by destroying its economy. There is no other response than to resist. Whatever it takes.   

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