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Posted
6 minutes ago, coffee_rules said:

He increased all tariffs with the global tariff of 10%, so effectively india will pay 28% now

 

 

Lol.. who in the right might will negotiate anything with him? Every time he has period, he will change tariffs that took years to negotiate.

 

why bother?

Posted
On 2/6/2026 at 9:37 AM, G_B_ said:

 

 

With the volatile nature of trump i think ups and downs are always expected.

 

Would not be surprised if tomorrow trump meets xi and slaps tarriffs on india inorder to cut deal with chinese.

 

Keep diversifying exports. India needs more exports and imports from  africa and south america. Should aim thesw two regions combined making upto 15% of bilateral trade in next decade

 

 

....

 

28%.... indian exporters need to just move away from usa in the interim.

 

 

 

Posted
2 minutes ago, G_B_ said:

....

 

28%.... indian exporters need to just move away from usa in the interim.

 

 

 


 

no one knows anything with trump. He just throws sh!t & everyone just needs to make sense of it.

Posted (edited)
5 hours ago, coffee_rules said:

He increased all tariffs with the global tariff of 10%, so effectively india will pay 28% now

 

 


How is it 28? The tarrifs under section 301 (requires investigation n hearing) were only applied to very few countries and even there only a portion of their trade. 
So India should be paying less now? Will have to see under what sections India’s tarrifs lied - MFN 232 etc) 

 

Also even with a blanket 10% tarriff, the effective tarriff rate (overall) will be something like 11.4% vs 13.6% (if existing exemptions remain - put in place due to domestic inflationary pressures). And if these exemptions r not followed then yeah it will be 16.5% vs 13.6% (source - Bloomberg)

 

So I expect the exemptions to remain - else will be digging an even bigger hole for inflation. And that means the tarrifs overall will be a little lower. And applying new ones under section 301 is not that straightforward. It’s a lengthy process. That’s why he is using that 10% 180 day privilege for now. 

Edited by MK55
Posted

tariffs hurt exporters but if the tariffs are uniformly applied across the board, then is India still not in a better position than countries who have been charged higher tariffs? I know it reduces the profit margin of exporters but this is the new global reality under this administration. I wont be surprised if Republicans gets annihilated in the midterm elections. they are holding the House by 1 seat only. Dems might even flip the Senate.

Posted

Chat gpt -

 

 

 

India —

~45–55%

of India’s exports to the U.S. were still under IEEPA after the deal (and ~45–55% carved out to zero reciprocal)

 

 

Why:

 

The official U.S.–India joint statement says the U.S. will apply a reciprocal tariff rate of 18% under EO 14257 (IEEPA) to specified Indian-origin goods, and (conditional on the interim agreement) remove the reciprocal tariff on a “wide range” of goods listed in the “aligned partners” annex (e.g., generic pharma, gems/diamonds, aircraft parts).

Multiple Indian reports (and a minister quote) put the zero-reciprocal bucket at about $44B, described as nearly half of India’s merchandise exports to the U.S.

India’s FY25 exports to the U.S. are widely reported around the mid-$80B range (so $44B being “about half” is internally consistent).

 

 

So the estimate: if ~$44B gets zero reciprocal, the remainder (roughly another ~$40B–$45B) is the portion still facing the 18% IEEPA reciprocal—hence ~45–55% still under IEEPA.

Posted

So roughly half of India’s tariffs were made zero and half was 18% under IEEPA. 
So now assuming the exemptions are not removed (pharma etc) - the effective tariff will be 0.5 * 10% instead of 0.5 * 18%

Posted

For EU: (also ChatGPT) 

 

 

 

EU — structure before the ruling

 

 

The EU deal (simplified) looked like:

Most goods: tariff set to 15% total

This 15% was achieved via an IEEPA “top-up”

if MFN tariff was 3% → add 12%

if MFN was 8% → add 7%

etc.

 

So the extra portion above MFN was largely IEEPA-based.

 

There were carve-outs:

pharmas 

semis

some industrial inputs

metals handled under 232 quotas

 

Those carve-outs are roughly 15–25% of EU trade.


 

Effective tariff before ruling:

Let’s take midpoint:

80% at 15%

20% at ~0%

0.8×15% + 0.2×0% = 12%

So effective tariff on EU imports ≈ ~11–12%

 

After ruling (if exemptions r honored):

same 80% bucket now at 10%

carve-outs still 0%

0.8×10% + 0.2×0% = 8%

Posted
1 hour ago, MK55 said:


How is it 28? The tarrifs under section 301 (requires investigation n hearing) were only applied to very few countries and even there only a portion of their trade. 
So India should be paying less now? Will have to see under what sections India’s tarrifs lied - MFN 232 etc) 

 

Also even with a blanket 10% tarriff, the effective tarriff rate (overall) will be something like 11.4% vs 13.6% (if existing exemptions remain - put in place due to domestic inflationary pressures). And if these exemptions r not followed then yeah it will be 16.5% vs 13.6% (source - Bloomberg)

 

So I expect the exemptions to remain - else will be digging an even bigger hole for inflation. And that means the tarrifs overall will be a little lower. And applying new ones under section 301 is not that straightforward. It’s a lengthy process. That’s why he is using that 10% 180 day privilege for now. 

Agree, mine was early information. There are clarifications issued later that the deal and later BLA with India will not be affected by this SC decision 

Posted (edited)
1 hour ago, coffee_rules said:

Agree, mine was early information. There are clarifications issued later that the deal and later BLA with India will not be affected by this SC decision 

In fact actually it should even reduce since 50 percent of the non exempted goods are all under IEEPA which has 18% tax rate instead of now 10%. Assuming the exemptions are still honored. 
They keep spreading  blatant misinformation and often right from the top too.

Edited by MK55
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