Some of Donald Trump’s reasons for imposing tariffs on countries are understandable, even if their fitness for the purpose is debatable. Demanding that Mexico impose tighter border controls, Europe raise defence expenditure and China prevent fentanyl smuggling or else suffer economic punishment is coercive diplomacy. A good threat comprises a promise of punishment if the…
In response, both Canada and Mexico have announced retaliatory tariffs on key US industries, while Trump has vowed to impose “reciprocal” tariffs on “everybody across the board.” Also Read: Truth or dare: Close the deficit in clarity over the impact of Trump’s tariffs Since no other country wields as much influence over the world economy…
Being ‘not China’ may have been the easy part. A big manufacturing pitch in several Asian economies was that they enjoyed cordial relations with Beijing and solid historical ties to the US. Leaders didn’t mind taking some rhetorical shots at America if it was convenient for domestic politics, but showed no desire to choose between…
In this volatile environment, India must confront a critical but often overlooked challenge: labour productivity. Without determined efforts, our low labour productivity will continue to erode our economy’s growth potential, pushing it into a middle-income trap. Therefore, addressing this gap is not just a policy priority, but an existential imperative. Also Read: Worker scarcity: Low-wage…
Prime Minister Narendra Modi has now completed a round of discussions with US President Donald Trump. While little has been signed on the dotted line, the contours of a planned India-US deal are now clear, though it would not be (as the media was expecting) only about trade and tariffs. Also Read: Trump’s reciprocal tariffs:…
Let’s begin with things we can be sure about. I believe that at least three indisputable trends have been revealed so far. First, a deep antipathy for expert knowledge. Second, blatant racism. Third, a drive for territorial expansion. These features affect not just America, but the world. Consider the disdain for expertise. There is close…
The term ‘shock and awe’ is usually attributed to George W. Bush, who purportedly used it to describe the US Army’s prodigious and forceful ability to initiate regime change, before deploying it in Iraq almost 22 years ago. In reality, the term made its appearance first in a 1996 Pentagon briefing to paint a picture…
On 3 February, both Canada and Mexico were given a 30-day reprieve, with concessions extracted from them—the beefing up of border patrols to prevent ingress of fentanyl and illegal immigrants. While both Canada and Mexico had threatened retaliatory tariffs, they too have deferred action in the wake of Trump’s decision to temporarily suspend tariffs on…
Let’s take stock of India’s external environment. Our pile of foreign exchange has dropped by nearly $80 billion or about 12% in five months. Much of this loss was because the Reserve Bank of India was trying to defend a falling rupee. The rupee-dollar rate is racing towards 88 and beyond, down by 6% in…
The bite of Donald Trump’s trade policy, many had hoped, would be a whole lot softer than its bark. The US president, it would appear, is not sorry to dash those hopes. Invoking a national emergency, he has imposed tariffs—effective this week—of 25% on imports from Canada and Mexico, except for oil and gas from…
