Saturday, November 15, 2025

It's in the timing.

"The United States and Switzerland announced a framework trade agreement...that includes Washington slashing its tariffs on imported Swiss products to 15% from 39% and a pledge by Swiss companies to invest $200 billion in the US by the end of 2028." Reuters. Earlier, "In a massive trade deal with the European Union, the EU has agreed to purchase $750 billion in US energy and make new investments of $600 billion in the United States, all by 2028, while accepting a 15% tariff rate, and charging American companies zero." The White House. On 8 May, a US-UK Economic Prosperity Deal (EPD) was concluded, under which there will be a baseline 10% tariff on UK exports to the United States and the first 100,000 cars would carry a tariff rate of 10%. There is still a US tariff of 25% on steel and aluminium imports while the UK has not removed a 10% tariff on US cars and 25% tariff on US car parts. The biggest bonanza for the UK was that, "US firms such as Microsoft, Nvidia and OpenAI committed approximately $130 billion in capital investment to build out digital infrastructure in the United Kingdom." CSIS. Since 27 August, Indian goods have been charged 50% tariffs which has severely impacted Indian exports to the US. BBC. "Commerce and industry Minister Piyush Goyal...said India wants a fair, equitable, balanced trade deal with the US and it will not compromise on the interests of farmers, fishermen, and the dairy sector." NDTV. Indian farmers are the most exploited people on the planet, as well as probably the most unfortunate. "Indian farmers' hopes for bumper crops following this year's abundant monsoon rains were dashed by heavy downpours just before harvest that damaged their fields, crushing the dreams of millions who rely solely on agriculture for their livelihoods." ET. Across Maharashtra, "Relentless rains have wrecked crops - from onions, tomatoes and potatoes to pomegranate and soyabean - while collapsing prices have left farmers with little to show for their toil." ET. Once called 'white gold', "Cotton farmers in India are facing one of their worst crises in decades." "Yields are falling in the fields, prices are dropping in the mandis (wholesale markets) and imports are rising in the markets. By reducing import duty to zero, the government has made the situation even more difficult for farmers." India Today. Just occasionally, Indian farmers can get lucky. In July 2023, a farmer couple in Maharashtra made a windfall profit of about Rs 24 million from tomatoes on their 12 acre farm. NDTV. This could not be allowed. So the government imported tomatoes from Nepal to sell at Rs 50 per kg. CNBC. Prices crashed and farmers, who came later, made losses. Inflation reduces votes. Now, "The electoral victory for Prime Minister Narendra Modi's party in a key state (Bihar) is set to pave the way for New Delhi to make farm-related concessions, a central demand of US trade negotiators." CNBC. Moral of the story: Indians are disposable. Get the timing right.    

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