Trump's new tariff order exempts India on copper, lumber, and critical minerals. The order imposes a 26% lower tariff on India compared to China, but experts question the calculation methods. Former diplomat Ashok Sajjanar criticises the non-transparent system and highlights the impact on strategic partnerships in the Indo-Pacific region.
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00:00It's the annex to the final blueprint of the Trump order that has given a key leeway to India. What is that leaving?
00:07copper lumber articles
00:09Critical minerals have been exempt. So there are certain
00:13Materials that are exported to the United States of America. One of our big trading partners has decided to give us
00:20Exemption on that. I want to bring in our guests on that
00:23Daniel block if you can hear me as a senior editor of the foreign affairs magazine contributing editor, The Washington Daily
00:30You tell me about how do you look at especially when we are talking about?
00:35So to say a discounted tariff. Do you think he's looking at who are the allies who he does not want a trade war with?
00:44No, there's actually no evidence or reason to think at all that
00:48he's
00:50Determining between countries which ones he wants to be friends with or which ones he doesn't these exemptions seem to be determined by what?
00:57Goods, he wants it to be cheaper for the United States to import what different groups in the United States have managed to secure concessions
01:05In terms of the other countries, I mean he spelled out his logics the flat 10% tariff on all products
01:10And then for a certain set of countries including India, they've calculated what they consider to be
01:17The tariff on the United States, it's important to note that their calculations are not based in reality
01:23But then across the board for India for China for the European Union
01:27They've slashed that in half and they said that's what the tariff is going to be
01:30So it's it's incredibly kind of astonishingly impersonal. There's really no distinguishing between friend and foe
01:37Look at how he's imposed high tariffs on Asian countries in many ways when we're looking at the manufacturing sector or sectors where
01:45America has been has been trying to ally to counter China and instead. Well, how do you look at the
01:52How do you look at India specifically a 26% tariff lower compared to China, but experts say even that is higher
02:01Yeah, I mean it's lower compared to China but it's higher compared to many other countries it's higher compared to the European Union true
02:09It's higher I don't know exactly where it falls on the table. I haven't looked at it. I'm not looking at it right now, but
02:17It doesn't there doesn't seem to be any real discount for India relative to other states
02:21The exemptions are across the board for all countries. The rates are again
02:25They've calculated what they think the tariffs are on the United States. I want to emphasize again. These calculations are false
02:32But they are why do you say that? Why do you say that you want to elaborate on that? Yeah. Yeah. Sure. I'm happy to
02:38So there is an amount that other countries have tariffs on products coming from the United States and that varies from country to country
02:45But they didn't just look at that what they did or so they claim is that they added to that they calculated the rate of non
02:54tariff trade barriers
02:55but what they really did it looks like and we're still trying to figure out exactly how it worked is
03:00they took the US trade deficit with other countries and then they just simply divided that by the number of
03:06Exports that that country makes to the United States and they determined that that was what the effective tariff was
03:12on the United States
03:14and so that's that's the logic that it seems like they used in order to get the numbers that they then divided in half in order
03:20To determine what the tariff would be on other countries
03:23Interesting as India is also analyzing I bring in Ashok Sajjanar a former diplomat
03:28With a wide experience that you've had with the United States of America Ashok Sajjanar
03:32You tell me how do you look at especially the tariff on India because this was one announcement
03:37I'm sure that the world was watching
03:39India more so because of the negotiations that we have had with the American officials and administration of the past few months
03:47Yeah, absolutely Pooja I think it's
03:51The tariffs that they have been announced. They are not
03:56Unexpected, you know, it was known that there would be some tariffs because I think mr
04:01Trump also wishes to project himself as a
04:04Strong player as a strong leader who sort of you know takes action, you know who on whatever he announces
04:11So, you know, that's what he wanted to say what he wanted to demonstrate
04:16So that is number one even as far as India is concerned and the world is concerned
04:21so not unexpected, but I don't think
04:25totally uncalled for
04:27Because you know the way in which the tariffs have been
04:31Calculated it is not clear at all
04:33It is totally non-transparent system
04:36And you know if the United States is saying that it's not only tariffs that India charges or the other countries charge
04:43But also the non-tariff barriers then the United States itself has so many non-tariff barriers
04:49against exports from a number of countries and you know
04:53Whether it is agriculture in terms of the subsidies that they provide to agricultural products, etc
05:00That has not been factored in he just says we charge 2.4 percent or something. We don't charge anything
05:06what about the non-tariff barriers that the United States has so, you know, the it is a
05:13unilateral in what has been done and
05:17You know all his good words that Prime Minister Modi is a good friend. There's that and the other
05:23I don't think that there has been any
05:27relevance of that in terms of
05:29Whatever tariffs have been imposed and let me also mention, you know, these are all items
05:36pharma critical minerals
05:38copper
05:39Semiconductor these are items that the United States needs and that the United States needs at
05:47Reasonable prices now India is not an exporter of semiconductor. How does it help me?
05:51You know
05:52He might have put that aircrafts are at zero percent duty on exports from India to the United States
05:58How does it help me? Do you feel he's spoken more as a businessman than a politician in this regard?
06:07Let me put it this way. I think his he has been able to get to the whole world
06:13Against him. He's been able to get even
06:17You know the adversaries for instance, you know, China reaching out to India saying that you know, we are going to increase
06:24Exposed from India to China, you know, I mean this is having an impact there you look at China
06:32Japan South Korea coming together saying that you know, we are going to deal with Trump's tariffs
06:38Together, you know on all these things
06:40So he is getting the whole world against him and let us put it this way, you know
06:47For the consideration of your viewers, you know, the per capita GDP of the United States is
06:52Eighty eight thousand dollars. He is saying we are going to make America very rich
06:58It might become hundred thousand or whatever at what cost at what expense do not
07:04Listen into what Donald Trump in saying adding to what you are saying here. I want to ask you one more question
07:09I had a panelist in the previous discussion who in fact said a professor from the from the Department of Economics in American University
07:17he said you're looking to counter China and
07:21Then you levy such a tariff on India which is being seen as an ally why would you do that?
07:27How do you then counter China if you levy a high charge on India to what would you say to that?
07:32No, absolutely. I fully agree with that and it's you know, not only India meaning if you look at the Indo-pacific
07:38You see that you are the one Trump was the one who in 2017
07:43revived the reincarnated the quad and
07:47You are imposing
07:49tariffs against Australia against Japan against India
07:52All those who are going to stand with you in terms of providing, you know what you say that I want a free and open
08:00prosperous stable
08:02Indo-pacific I want freedom of navigation
08:04You need to strengthen your strategic partnership with these countries
08:09What is the message that you are sending out to these countries?
08:12You know my Commerce Ministry India's Commerce Ministry might say it is, you know, we are analyzing it's not all bad
08:19There's that and the other this is one way of putting at it so that you know, our
08:25Bilateral relations do not get and alarm bells do not go off possibly. Yeah within the country