Monday, May 19, 2025
Prima donna is just one.
"Economists marked up their forecasts for growth in the US and China after the world's two-largest economies reached a temporary agreement to reduce tariffs on each other." "The recent conflict between India and Pakistan is prompting a reassessment of Chinese weapons, challenging long-held perceptions of their inferiority to Western arms," as "Pakistan hailed the use of its Chinese J-10Cs to shoot down five Indian fighters, including French-made Rafale aircraft." ET. US President Donald Trump has created problems for Indian Prime Minister Narendra Modi by announcing the ceasefire with Pakistan and "by claiming that among all the reasons New Delhi and Islamabad stepped back from the brink of an all-out war, trade was a 'big one'." Trump even told CEO of Apple Tim Cook, "I don't want you to build in India." Wrote Andy Mukherjee. "A US bill proposes a 5% excise tax on any remittances that originate in the US to any other country." It affects India because there are nearly 2.3 million Indians working in the US and "In 2023 alone, they sent home over $23 billion." CNBC. Such a substantial reduction in dollar inflows could weaken the rupee by Rs 1-1.5 per US dollar and force the Reserve Bank of India (RBI) to sell dollars to support the rupee. "The impact would be particularly felt in states like Kerala, Uttar Pradesh and Bihar, where millions of families rely heavily on remittances from overseas workers to cover essential expenses such as education, healthcare and housing." TOI. "India is prepared to eliminate all tariffs on goods from the US, Trump said," adding that he was in "no rush" for a deal with India." ET. It means that Trump intends to make India sweat until it gives in, knowing that "The US remained India's largest trading partner for the fourth consecutive year in 2024-25 with bilateral trade valued at USD 131.84 billion," and a handsome trade surplus of $41.18 billion, whereas our trade deficit with China was an enormous $99.2 billion. TOI. It, therefore, behooves India to keep the US and Trump sweet, but "India is looking at levying import duties on some products made in the US to counter Washington's tariffs on steel and aluminium products, a document submitted to the World Trade Organization shows." Reuters. The Indian "Government also rejected the US President's claim that he had threatened to stop trade with India and Pakistan to get them to agree to a 'ceasefire'." TOI. It was only in February that Mr Modi was hosted at 'Bair House', known as 'the world's most exclusive hotel', during his visit to the US. "Ahead of PM Modi's arrival, Blair House was decked with the Indian flag, signifying the importance of this diplomatic visit." HT. So, why has everything gone pear shaped? According to Indian media, it is because Pakistan bribed Trump by promising to invest in his family's cryptocurrency business, offering investments in rare earth minerals and, early in March, helping the US to arrest "an ISIS-K operative involved in in the 2021 Abbey Gate bombing that killed 13 Marines." ET. From Blair House to bribery allegations - it's like falling off a cliff. Because, there can be only one prima donna. Unfortunately, Trump carries more weight. Stop competing.
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