A domino effect.

"India is planning to lay out a road map for duty cuts on certain American imports when a US trade team arrives for discussions next week," and "Some of the American imports that this early harvest deal could cover include motorbikes, four-wheelers, fossil fuels and some farm produce such as pulses." HT. That is being clever and hoping the Americans are fools. Very few people will afford a Harley Davidson with prices starting at Rs 239,000 (bikewale) when Hero Motocorp, TVS and Bajaj Auto hold nearly 58% of sales, with Honda sales at 25.5% (autopunditz). In the four-wheeler segment, four companies Maruti Suzuki, Mahindra, Hyundai and Tata Motors hold 80% of the market share. spinny.com. American car companies have left India. "Russia and India are friends and partners." "Russia never came to India as conquerors." The Embassy of the Russian Federation. In 1971, the then Soviet Union protected India from possible attacks by the US Seventh Fleet and the UK Navy. India Times. Also. India is buying Russian oil at a discount of $2.60 to $2.60 per barrel (Reuters), and should not give up this advantage. India is the largest importer of pulses in the world anyway, and imported a record 4.7 million tonnes in 2023-24. BS. India has been importing 17% of its requirement of pulses from Canada (HT) but relations with Canada have been strained in recent years. "China and India are likely to interfere in the Canadian general election on April 28, while Russia and Pakistan have the potential to do so the country's spy service said." Reuters. If we get a good deal from the Americans on pulses it will be to our advantage. But, what if the Americans demand more? " In February, India slashed customs duty on US bourbon whiskey to 100% from 150%. HT. Despite the cut, White House Press Secretary Karoline Leavitt insisted on 13 March that "India's 150% tariff on American alcohol is unhelpful". TOI. "WTO data indicates the US trade-weighted average tariff stands at 2.2%, whilst India's is at 12%. The United States maintains a $45.6 billion trade deficit with India." India wants to reduce tariffs on 55% of US imports, valued at $23 billion, on which it levies 5% to 30% duties. TOI. "US President Donald Trump still intends for new reciprocal tariff rates to take effect on April 2, the White House said," (Reuters) although the latest indications are that certain sectors may be exempt from reciprocal tariffs (ET). The main problem for the government is that if it reduces taxes on American alcohol and cars, the EU and the UK will also demand similar reductions on their whiskey, wine and cars. And if they comply India will be compelled to reduce taxes on Indian drinks and that is the real concern for the government because as per the International Spirits & Wines Association of India (ISWAI), taxes constitute 67%-80% of product prices (BS). Cutting taxes on Indian alcohol will seriously dent revenue collection. A desperate government is demanding $601 million in back taxes from Samsung and its executives and a record $1.4 billion from Volkswagen. ET. Naturally, Volkswagen as sought relief in court. In response, "India's government has told a court in Mumbai that agreeing to Volkswagen's demand to quash $1.4 billion tax bill would have 'catastrophic consequences'." Reuters. It's not just cutting tariffs to please Trump but the domino effect of such action that is terrifying. Could be catastrophic. The government's description.