India has rejected the Chinese plan and chosen to follow the USA model because access to the U.S. consumer base is the stronger economic influence.Posted on 05/05/2025 1:13:12 PM PDT by SoConPubbie
India was under pressure by both sides, the USA and China. Part of the Trump Indo-pacific plan was a geopolitical trade strategy aligning the United States with India. However, Beijing was pressuring India to reject alignment with the USA and form a mutually beneficial trade block with China.
India has rejected the Chinese plan and chosen to follow the USA model because access to the U.S. consumer base is the stronger economic influence.
The result? Once again, sad Panda.
INDIA – India has sided with the United States (US) President Donald Trump on the trade war with Xi Jinping of China. Reports indicate that Indian Prime Minister Narendra Modi is ready to accept all conditions of the US in a trade deal.
Trump raised tariffs on most Chinese imports to 145%, citing the need to reduce the trade deficit and encourage domestic manufacturing.
In retaliation, China has imposed 125% tariffs on US goods and implemented non-tariff barriers, including export controls on critical rare-earth elements.
Indian Prime Minister Narendra Modi visited Trump in the White House in February 2025.
After the meeting, the leaders announced they would pursue a “framework” for greater cooperation.
“ Prime Minister Modi and I have agreed that we will be in negotiations to address the long-running disparities,” Trump said.
“But really, we want a certain level of playing field, which we really think we’re entitled to.”
On the other hand, Modi said India and the US will have a MEGA partnership for prosperity.
He said India is working towards a Viksit Bharat, which in the American context translates into MIGA.
“An excellent meeting with Trump at the White House. Our talks will add significant momentum to the India-USA friendship,” Modi said.
[…] Modi’s move is despite persuasion by Yu Jing, spokesperson for the Chinese embassy in India, for Modi to join forces with the Asian country.
Jing said India and China should stand together against US tariff actions as the two largest developing nations. (more)
Great news!
Let me know the agreement is signed.
Of course they want to curry favor with us....
Alighn? Come on! It’s more like an offer they can’t refuse.
Works for me....
ndtv.com-——The outgoing Biden administration has relaxed rules for H-1B visas that will make it easier for American companies to hire foreign workers with special skills and facilitate a smoother transition from F-1 student visas to H-1B visas, a move that is likely to benefit thousands of Indian tech professionals.
The most sought-after H-1B visa is a non-immigrant visa that allows US companies to employ foreign workers in specialty occupations that require theoretical or technical expertise......mostly from India.
Jill Biden got the priciest gift from a foreign leader in 2023 — a $20,000 diamond from India
By Associated Press—— cnn.com
Published 8:17 AM EST, Fri January 3, 2025
—
President Joe Biden and his family were given tens of thousands of dollars in gifts from foreign leaders in 2023, according to an annual accounting published by the State Department on Thursday, with first lady Jill Biden receiving the single most expensive present: a $20,000 diamond from India’s leader.
The 7.5-carat diamond from Indian Prime Minister Narendra Modi was easily the most costly gift presented to any member of the first family in 2023, although Jill Biden also received a brooch valued at $14,063 from the Ukrainian ambassador to the United States and a bracelet, brooch and photograph album worth $4,510 from the president and first lady of Egypt.
President Biden also received a number of expensive presents, including a commemorative photo album valued at $7,100 from South Korea’s recently impeached President Suk Yeol Yoon, a $3,495 statue of Mongolian warriors from the Mongolian prime minister, a $3,300 silver bowl from the sultan of Brunei, a $3,160 sterling silver tray from the president of Israel, and a collage worth $2,400 from Ukrainian President Volodymyr Zelenskyy.
Federal law requires executive branch officials to declare gifts they receive from foreign leaders and counterparts that have an estimated value of more than $480. Many of the gifts that meet that threshold are relatively modest, and the more expensive ones are typically — but not always — transferred to the National Archives or put on official displays.
The $20,000 diamond to Jill from India was retained for official use in the White House East Wing, according to a State Department document, while the other gifts to the president and first lady were sent to the archives.
Vanessa Valdivia, a spokesperson for Jill Biden, said the diamond will be turned over to the archives after the Bidens leave the White House. She did not say what it was being used for.
That is good, but India like China has serious problems with product quality(Low) and prices(high).
I once priced out a water pump that would basically run on used motor oil or any other cleaner grades of oil, like Diesel.
It was a very rough Sand cast and they didn’t bother to remove all the sand before external painting.
Single cylinder, very low RPM.
They wanted $800! before shipping and import tax costs.
India has to clean up it’s act before it can become a world class player!
Excellent. As important as this is for trade, in the long run we need to get India aligned with the West. India is a rising superpower. Their size and demographics make it clear they’re going to be a major player by the mid to late 21st century.
“we want a certain level of playing field, which we really think we’re entitled to”
Level playing fields are simply not possible when foreign costs are much lower.
Financial balance needs to be the key goal.
There should be a general set of rules set from time to time by Congress.
If the EU gets a better deal from Trump than Australia, then the Australian Parliament may refuse to ratify Australia’s deal with Trump.
“The Congress shall have power...To regulate commerce with foreign nations”
The “shall” means Congress can change international trade terms at any time of its choosing.
The terms of Congress should include the US right to sell to a country a product that may be generally sold in both the EU and US generally or service that may be generally sold across US state lines as well as generally between EU countries.
If the foreign country doesn’t accept the terms of Congress, trade should be limited to bartering US products for the foreign country’s products.
from my proposal:
The base tariff for a particular import shall be:
1. increased 2% per dollar as estimated by the Secretary of Commerce,
on the industry wage shortfall of a key source country compared to the USA,
up to 20%, but levied only if the country is industrially advanced,
[That allows for tariff setting based on industrial wage levels. China has lower levels than ours. There is a developing country exception to help them grow and expand the world economic ‘pie’.]
2. increased by the percentage of the latest 12-month US<->international commercial cash flow US shortfall,
excluding most raw material transactions, as to be estimated by the Secretary of Commerce, up to
a. 10%, if the key source country is industrially advanced,
b. 5%, otherwise,
[That’s to help balance our overall trade deficit.]
3. increased by the percentage of the latest 12-month US<->the key source country commercial cash flow US shortfall,
excluding most raw material transactions, as to be estimated by the Secretary of Commerce, of up to
a. 10%, if the key source country is industrially advanced,
b. 5%, otherwise,
[That’s to help balance financial flows between the US and specific countries and to ensure Canada isn’t penalized for massive and highly valuable raw material exports to the USA.]
4. adjusted based on the latest 12-month US<->foreign exchange rate change,
as to be computed at least annually by the Secretary of Commerce, with
a. proportional addition by up to 5%, when unfavorable to the US dollar,
b. proportional reduction by up to 5%, when favorable to the US dollar, but to not less than 10% tariff,
[That’s to help stabilize foreign exchange rates. The tariffs need to be more about long-term international and domestic financial stability than stuff. Brazil as well as the US needs the ability to be financially stable.]
5. as directed by the President of the United States and otherwise allowed by law,
adjusted based on domestic producer profitability, by industry and/or product type,
except when the import is a garment from a country that is not industrially advanced,
or contains intellectual property of key value significance,
as shall be calculated by the Secretary of Commerce, with
I. a 10% addition, no domestic producer of product or service type,
II. addition of calculated percentage that is less than 10%,
III. reduction by calculated percentage that is less than 10%, but to not less than 10% tariff.
[That enables the President to protect key US industries such as the steel industry from collapsing.]
Note the high degree of self-adjustment. That enables the rules to remain reliable for much longer.
Direct labor costs are not that big of a component in total. The real burdens US suppliers face are largely regulatory and the administrative/personnel overhead to support them, to say nothing about the cost of product liability settlements. The capital necessary to absorb the latter has been used as a barrier to competition.
[From my proposal]
The total tariff shall be:
1. 25%, on aircraft grade aluminum alloys and automotive grade ferrous metal,
2. on national security products [we could and should make],
a. initially 0%, and then increasing by 2% at the start of every IRS quarter month after 2025 to 20%, on
I. industrial level components,
II. any drug for lawful retail sale & consumer use,
III. drug, chemical and plastic industrial inputs, other than refinery hydrocarbons and those for making fertilizer,
VI. semiconductors,
V. solar cells and panels,
VI. basic rare earth element products other than ore,
[That’s for national security reasons]
3. 0%, on
a. other raw materials, including coffee beans, fertilizers and their precursors,
base metals, electricity, raw & refined hydrocarbon products,
when vended without resale or short leash supply restriction,
[That’s to ensure our manufacturers and farmers have access to cheap raw materials.]
b. foodstuffs, when sourced from a country for which the Secretary of Agriculture justly holds in good standing
for lack of undue impediment on import of US agricultural products generally vendable in the USA,
[That’s to open up markets to US agricultural products.]
4. tariffs paid on section 1 and 2 imports, except from China,
may creditable on a one-to-one basis after bona fide export of manufactured products containing them
via any optional scheme the Secretary of Commerce may allow a bona fide manufacturing exporter to participate in.
[That’s for a more level playing field for US manufacturing exporters.]
What is happening, is the emerging nations are copying the China model and negotiating more favorable tariff terms with the US. One example I know of has opened a new factory in Thailand to compete with Chinese factories. 25% tariff rate vs 175% and they can probably get it reduced even more.
Until now, there’s been no reason to invest to compete against China, because they have years of experience and dominant market share. Trump just provided a reason.
And when China finally comes to the table (because they cannot replace the US demand), they will find new competitors in other low-cost countries are taking a big bite of their apple.
Excellent news, India is a big get and Xi just got more pressure to make deal.
“Direct labor costs are not that big of a component in total.”
I’m looking to speak to the Chief Financial Officer of Ford....
“The real burdens US suppliers face are largely regulatory and the administrative/personnel overhead to support them”
I have suggested:
The terms of Congress should include the US right to sell to a country a product that may be generally sold in both the EU and US generally or service that may be generally sold across US state lines as well as generally between EU countries.
If the foreign country doesn’t accept the terms of Congress, trade should be limited to bartering US products for the foreign country’s products.
From my proposal:
There shall be no tariff on bartered items internal to a motor vehicle organization, bartered beverage exchange system, or other barter system approved for tariff exemption by and justly held in good standing with the Secretary of Commerce.
[Let the Chinese exporters handle the importation and sale of US goods so their stuff comes in tariff free.]
They can retool factories and replace those Chinese products fairly quickly. And supply them to us just as cheap. Once done we will no longer even need China for those products ever again...
And, some more good news, for Texas!
“President Donald Trump and Mexican officials have reached an agreement that requires Mexico to deliver approximately 570 billion gallons of water annually to the U.S. The deal follows tensions over Mexico’s compliance with a 1944 treaty governing water allocations. The agreement aims to address the immediate water needs of Texas farmers amid significant shortages.”
-Bizenga
I was tasked with finding a supplier for medical devices.
There was a company in India that looked promising. A highly educated workforce, modern manufacturing, a good reputation, stellar management.
So I went to Google Maps to see if it was legit. Sure enough they had a “big beautiful building” as Trump might say.
Then went to street view, there was a tall wall around the facility and across the street there were some naked kids, a barefoot woman cooking on an open fire and a goat.
As they say “India runs India”, Modi’s just the chief cat herder.
I would love to see this solidify. Trying to understand though why India has 1/3rd the economy of China.
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