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In this edition of Newstrack, the focus is on the US decision to impose an additional 25 percent tariff on India over its Russian oil purchases, giving a 21-day ultimatum.
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00:00Trump takes tariff threat one step further, doubles tariff on India to 50%
00:16India calls move unfair and unreasonable
00:24Doval in Russia, Prime Minister to head to China
00:42Time for India to look for other markets
00:50Trump's tariff tyranny
00:52That is our top focus on Newstrak
00:58Good evening, you're watching Newstrak here on India today
01:00I'm Akshita Nantha Gopal
01:02And the big news break that came in a few hours ago
01:04Is Donald Trump signing their executive order
01:07Ensuring a 25% tariff on India plus a penalty tariff of 25%
01:12Which means a 50% tariff slapped on India
01:16India's message is very clear
01:18That our national interests remain our top priority
01:21And so India in its statement has said
01:23That Trump's move of slapping these tariffs is unfair, unjustified, unreasonable
01:30We're going to be taking you through India's response
01:32And also beyond the statement
01:34What India could do next to actually counter these tariffs
01:38I'm Akshita Nantha Gopal
01:39Here are the headlines first
01:44Trump slaps additional tariff of 25% on India
01:48Says there will be a bigger hike
01:50If India chooses to retaliate
01:52Cites threat to US foreign policy behind tariff meltdown
01:54India heads back over Trump
02:08Additional tariff calls hike unfair, unjustified, unreasonable
02:12Government says India will take all actions necessary to protect its national interests
02:16Amid Trump tariff strike over Russian oil
02:24NSA Ajit Dovali in Russia
02:26Like it all meeting with Vladimir Putin
02:28Death, destruction and deluge
02:36In Uttarakhand's Uttarkhashi
02:38Over 190 rescued so far
02:40In joint rescue ops
02:42Chief Minister Dhami
02:44To stay overnight in affected area of Dharali
02:47Death told months to five
02:49Casualty count could go up in the coming days
02:56Prime Minister Modi to make two day visit to China
02:59First Prime Minister visit since Galwan
03:02Modi will be headed to China end of the month
03:04We'll also visit Japan
03:17And let's begin by getting you all the details of India's response
03:20To Trump's 50% tariff being announced in an executive order
03:25Now India has made it very clear that national interest is first
03:29We will do everything we need to to protect our national interest
03:32Donald Trump has signed an executive order imposing an additional 25% tariff on India
03:37For its Russian oil imports
03:39So the total tariff is now at 50%
03:42Because remember the previous announcement was 25%
03:44Plus the penalties that he referred to for India's ties with Russia
03:48For importing Russian oil
03:50That's a 25% penalty, 50% in all
03:53India soon after put out a detailed statement
03:56And very clearly has said we're not going to back off in the face of these tariff threats
04:02India's Ministry of External Affairs put out a statement asserting that India's energy imports are driven by market realities
04:09And the critical need to ensure energy security
04:12And so in that statement MEA has said that the tariffs are unfair, unjustified and unreasonable
04:18The government has also made it clear that India will take all necessary steps to safeguard its national interest
04:24And here's what government sources have told India today
04:26That the PMO, the Prime Minister, will actually be reviewing the impact of Trump's tariffs with the MEA
04:32And Commerce Ministry officials
04:34Government officials have also clarified that energy imports, including Russian oil, remain completely unaffected
04:40That there's no question of bucking down to or bowing down to any pressure from America
04:46Let me bring in Karishma Asudani of Business Today
04:49We also have Rohit Sharma joining us from Washington DC
04:52Karishma, to you first on India's response to Trump's announcement of a 50% tariff on India
04:58While of course the MEA has issued a detailed statement
05:01We also understand that the first order of business tomorrow is going to be a meeting between the PMO and the MEA
05:08As well as the Commerce Ministry
05:10Akshata, these have been routine regular meetings that the government has been holding on for a while
05:16In fact, the involvement of MEA speaks highly of the fact that this matter is not just about tariffs now
05:23While it started on note of a commerce and trade aspect
05:27It's now something that is rested in the hands of foreign ministries
05:30Because we are talking about India's international relations
05:34India's position on a global scale, be it with the United States of America or Russia or Iran
05:42For the kind of comments and blames that have come in in the last few days
05:47Now India is clear and I think we've seen it by its response
05:51We've maintained a calm state of mind in terms of responding
05:55Today's response was the quickest and the swiftest that we have seen in the past few weeks
06:01The ministry has taken a clear stance
06:03Something that it has been reiterating for quite a few days also
06:07Where the government officials have been telling us that we are not here to retaliate
06:11We are not here to fight, we are here to talk, we are here to negotiate
06:14But not at the stake of our national interest
06:17And I think this is where the deadlock with the trade deal also came
06:20And that India was willing to do this conversation in a good manner, in a full-fledged manner
06:27But it was not willing to give up on its sensitive sector
06:30So I think it's the same rhythm that we are carrying on
06:34And we are still willing to sit on the negotiating table
06:38We are also picking up from our sources that we are still looking forward to the negotiations
06:42That are bound to happen on August 25th of this month
06:46Interesting to watch out
06:48Before that we make an attempt to make any phone calls to Washington
06:53To try and at least put this clash of egos for a while
06:58Well, let's see what really plays out
07:00But for now it definitely doesn't look good as far as, you know, these trade talks are concerned
07:06Doesn't look like there's honestly any talks that's actually happening
07:08Karishma, thanks for those details
07:10I'll bring in Rohit Sharma as well
07:12Rohit, as we speak, there's also a news break that's just coming in that you've put out
07:16About General Asim Muneer headed to America for another visit
07:21We understand that this is to in fact be a part of the retirement ceremony for the U.S. CENTCOM
07:28Chief General Khurira
07:30Can you give us more details about this?
07:32Does this really indicate where the U.S.
07:34Pakistan story is headed in sharp contrast to what's happening with India?
07:38Well, you know, there are sources telling us that at this point in time
07:42General Asif Muneer is going to be traveling to the U.S. this month
07:46General Khurira of CENTCOM is going to retire
07:48There's going to be a big farewell
07:50And Muneer would be in attendance
07:52And he would be coming to America to meet with General Khurira
07:56And then also have other meetings on the sidelines
07:59And this is, I mean, it's all about timing, right?
08:01I mean, you're talking about these 50% tariffs on India
08:05Or 25% additional tariffs, I should say
08:07But at the same time, we are seeing that America is welcoming Muneer back
08:12After he met with President Trump not too while ago
08:15So this is going to be big
08:17I think, you know, also sending right kind of signals
08:19Or maybe wrong kind of signals to India
08:22While inviting Muneer back in the U.S.
08:25And as far as I think these tariffs are concerned
08:27I mean, you know, it is not surprising
08:29Because Donald Trump had made it pretty clear
08:32Yesterday, actually, that he was going to do it
08:34The only silver lining is
08:36He's delayed it by 21 days
08:38Meaning that the next trade talk could potentially take place
08:42Before these additional tariffs could kick in
08:45Meaning that there is possibility of trying to negotiate a deal
08:49In the next 21 days
08:50Look, at the end of the day
08:52This is what most experts believe
08:54That all of these are pressure tactics by Trump
08:56And the fact that you've got 21 days to go for this tariff
08:58For this tariff to actually be implemented
09:00Means that this is America also giving us room
09:03To go ahead and negotiate bargain
09:05And ensure that the tariff comes down
09:07Essentially putting pressure on India
09:09It remains to be seen what India's response will be
09:11While they've put out a detailed statement
09:13Saying national interests first
09:15How really India deals with America
09:17And the talking table and dialogue
09:19Remains to be seen
09:20Thanks Rohit for joining us with those details
09:22Let me bring in on this broadcast
09:24Professor Brahma Chalani
09:25Strategic affairs expert
09:27We also have Ambassador Ashok Sajanar
09:29Forward diplomat
09:30Right now the big question everyone's asking
09:33And I'd like to begin with Professor Chalani first
09:36Is about how India should respond, Professor Chalani
09:40To what's happening
09:41We've seen a hard hitting statement from India
09:43Saying you know national interests first
09:44What US has done is unfair, unjustified
09:47But beyond that
09:49How really do you think India should take this?
09:53India's challenge is to balance firmness
09:56With diplomatic engagement
09:58How it does that
10:00Is going to be critical
10:02In dealing with Trump
10:04It's very clear
10:05Looking at his latest order
10:08Targeting India over its Russian oil purchases
10:12Firstly, it made India the first victim
10:15Of his secondary sanctions
10:17By imposing an additional 25% tariff
10:21Thereby doubling the tariffs to 50%
10:24The order is telling for two reasons
10:27It singles out only Russian oil
10:30Makes no mention of Russian gas
10:32Russian energy products
10:34Only Russian oil
10:35This is done by design
10:37To ignore the EU's massive imports
10:40Of Russian natural gas
10:43Including pipe gas and LNG
10:46It also makes no mention
10:48Of the biggest importer of Russian oil
10:50The Russian oil's biggest buyer is China
10:53Turkey, a NATO member, is also a big buyer
10:57Of Russian gas and oil
10:59In a sense, Trump is playing hardball with India
11:03He's playing hardball because he wants to
11:06Extract bigger trade concessions
11:10And his executive order
11:13Slapping punitive levies on India
11:16Has less to do with Russian oil
11:19And more to do with coercion
11:22With coercive brickmanship
11:24The fact that he makes no mention of China
11:28Is one tell-tale sign
11:30Also, the fact that he has given India
11:33A three-week ultimism
11:3521-day notice
11:36Gave in to his great demands
11:39Of face additional 25% tariff hike
11:44So, it's clear that he is seeking to ring
11:49Break the trade concessions from India
11:52And India will have to stand firm
11:55And yet, be willing to engage with Washington
11:58So, that's going to be
12:00A diplomatic challenge for India
12:03Ambassador Sajanar, how do you see this?
12:05Is this going to be, you know, a tricky path
12:08To navigate for India
12:09Especially, looking at what Professor Chalani has also said
12:12That the indications here
12:14Looking at the executive order from Trump
12:16Is one, there's only a specific mention of Russian oil
12:19You're seeing India being punished
12:20Where China isn't
12:21Despite China being the top importer of Russian oil
12:24All of them indicating
12:25That Trump is attempting very clearly
12:28To put the pressure on India
12:31No, absolutely
12:32Thank you very much, Akshita
12:33For having me
12:34You're very right
12:35This is what Mr. Trump is trying to do
12:38It is pressure tactics
12:39And he thinks India is a soft target
12:42So, he can extract whatever India, you know, is able to
12:47But, you know, India has been negotiating with the United States
12:51With President Trump
12:53In good faith
12:54You would recall that
12:55Even before Prime Minister Modi
12:57Had travelled to the United States
12:59In February of this year
13:01We had, again in good faith
13:04Given a number of indications
13:06That we are willing to work that extra mile
13:10To have a trade deal with the United States
13:13And we have worked in that manner
13:16You would recall that
13:17Before the deadline of the 9th of July
13:20We had a number of concessions
13:23There were so many trade rounds
13:26Negotiations that were held
13:27Five of them in all
13:28And it was, you know, at that time expected
13:31That this would be
13:33It is lying
13:34The trade deal is lying
13:35On Trump's table
13:36And it is going to be signed
13:38Any time
13:39It's going to be announced
13:40Any time
13:41But, of course
13:42This seems to have
13:43Wetted the appetite
13:44Of President Trump
13:46So, he is pushing back
13:48I think the general consensus
13:50That seems to be emerging
13:52As far as India is concerned
13:54And that has India's leadership also
13:57In tune with that
13:59That we need to stand firm
14:00And the challenge is
14:02How do we negotiate
14:04In addition to what, you know
14:07We have already possibly conceded
14:10In our negotiations
14:12I think what Trump is asking for
14:15Is 0% tariffs on all goods, etc.
14:18I think that is out of location
14:20What we can possibly do is
14:22And, you know, this is something
14:23That we were doing in Trump 1.0 also
14:26Importing more of LNG
14:28More of oil, gas, energy from the United States
14:33And this time also we had said
14:36We had promised that we are going to do it
14:38Because it's not under any sort of pressure
14:40Because this is something that we need
14:42We need to do
14:43You know, we need it for our own
14:45In fact, India is importing 85-88%
14:49Of its energy requirements
14:51And also I think what we have been talking
14:54In terms of defense purchases
14:57Definitely not the F-35
14:59Because that doesn't meet, as I understand
15:01Our security requirements
15:03But other defense equipment
15:05After all, our bill is to the tune of
15:0820-25 billion dollars
15:10So we can see what more is required
15:12So I think we can identify the areas
15:14Where we can import more
15:17But as far as
15:18There's still some middle ground
15:20From what you've said, Ambassador Sajna
15:23There is still some middle ground
15:24That can be reached here
15:25Which India also can take a few steps towards
15:28The other aspect of this
15:30And this is a question that constantly comes up
15:31In the face of Trump
15:33Being as unpredictable as he is
15:35It's about whether India should be looking
15:36To other markets as well now
15:38It's important to highlight the timing also
15:41Of the fact that NSA Ajit Duval
15:43Is in Russia as we speak
15:44He's in Moscow
15:45He's going to be meeting top Russian officials
15:48And clearly the idea is to boost
15:50India-Russia trade ties
15:52And that's messaging right there by India
15:54That look, we're not going to cut off
15:55Any of our trade ties with Russia
15:58Having said that also
15:59We understand that right after this
16:01You'll have External Affairs Minister Jai Shankar
16:03Also headed to Russia later this month
16:06And that tells you how important an ally Russia is to India
16:09The other aspect of this
16:11Is the announcement that came in today
16:12That Prime Minister Modi is headed to China
16:15Later this month
16:16At the end of the month in fact
16:17Prime Minister Modi will be visiting China
16:19From August 31st
16:20And will be there essentially for two days
16:23September 1st
16:24Modi's first visit essentially to China in seven years
16:27So the first one after the Galwan clash of 2020
16:32Now Prime Minister Modi is going there of course
16:34To be a part of the SCO
16:35The Shanghai Cooperation Summit
16:37And there will be an effort here
16:39To restore stability as well
16:42What do you think of this Professor Chalani?
16:45Do you think and there's been a lot of talk
16:46About whether Trump resorting to these kind of tariff tactics
16:50Could actually ensure that the BRICS comes together like never before
16:54That India looks to other markets to stabilize?
16:57Well what Trump is doing
17:01He's opening India's eyes
17:03Operation Sindhu
17:05Underscored that the US is not a reliable strategic partner of India
17:11He is seeing this new US-Pakistan love affair
17:16And now with his scorched earth tariff policies
17:21He's showing that the US is not even a reliable economic partner
17:26But more broadly
17:28The so-called rules-based international order has long been a myth
17:33But Trump with his disdain
17:35Disdain of rules and norms
17:37Is demolishing even the pretense of a rules-based international order
17:42Trump is like a bull in a China shop
17:45He has turned disruption into a virtual doctrine
17:49Including undermining America's long-standing strategic partnership with India
17:54Successive US administrations since Bill Clinton
17:59Invested a lot of political capital in building this partnership with India
18:05Now it appears as if he is intent on sinking this very critical bilateral relationship
18:13So dealing with him demands a composed measured response on India's part
18:19He is seeking to gain
18:23He is using domination tactics and to blunt his dominance tactics
18:29India has to respond in a measured way
18:33Firmness is needed
18:35We need to go beyond statements
18:37We need action
18:38And I think it's important to remember that India has leverage
18:42India may not have the same leverage as China
18:44Which used its monopoly on rare earth
18:51Rare earth supplies to the world
18:54It used that to great effect
18:57To bring the US to the negotiating table
19:00And to cut it in
19:02We may not have the same kind of overriding leverage
19:05But we should not forget that India remains
19:08The world's fastest growing major economy
19:12Which gives it leverage
19:14And as economies, other economies stall and populations shrink in most of the world
19:20India is a giant and still growing
19:22So the fact that American businesses are keen to get more access to Indian consumers
19:29Gives India leverage
19:31And therefore firmness does not mean just issuing statements
19:36Firmness means that you have to respond
19:40You have to retaliate in a measured way
19:42But it cannot be just at the rhetorical level
19:45You know the leverage that you are referring to Professor Chalani
19:49Of India being this big growing economy
19:52Trump has referred to India as a dead economy
19:54But the reality also is
19:56And this is something that we decoded through the day
19:58Of how Trump has real estate interests
20:01Highest yes in America
20:02Second highest in India
20:04Which he has deemed as a dead economy
20:06But also on the aspect of what we were referring to
20:09Of India looking to other markets
20:11And the fact that Trump
20:13With this tariff tyranny as we have deemed it
20:15Has kind of you know isolated a whole lot of countries
20:18India has the highest percentage of tariffs imposed by US across the world
20:22More than that on the EU as expected
20:24But besides that even on Southeast Asian nations and even China
20:27India now shares that position of 50% with Brazil
20:32Another BRICS nation which is facing a similar tariff right now
20:36And here's what the Brazilian President has said
20:38He's made it very very clear that they're not backing off
20:41He said in fact I will not call Trump
20:43Trump will have to call me
20:44But interestingly in the same breath he said
20:46I will dial Xi Jinping
20:48I will dial Prime Minister Modi
20:50I will even dial Putin
20:51Listen in to that
20:52I will dial Trump for a commercial laddão
20:55Because he doesn't want to talk
20:56But it can be clear Marina
20:58I will dial Trump
20:59To invite him to come to the COP
21:01Because I want to know
21:02What he thinks about the climate issue
21:04I will have the gentileza to dial
21:06I will dial him
21:07I will dial him
21:08I will dial him
21:09I will dial him
21:10I will dial him
21:11I will dial him
21:12I will dial him
21:13I will dial him
21:14I will dial him
21:15I will dial him
21:16Okay Ambassador Sajanar
21:20What do you think of this?
21:21You know a lot of conversation about how India, Brazil, China, Russia
21:27All of these countries
21:29All impacted by Trump's unpredictability
21:32By his tariffs
21:33Or of course by the constant statements that he makes against them
21:37Could actually unite the face of all of these actions by Trump
21:41You know as a
21:44You know on
21:46As a written statement
21:48It might appear to be very attractive
21:50I don't think that there is great potential as far as that partnership is concerned
21:56You know it has to be bilateral partnerships between India and Brazil
22:00India and Russia
22:02And as far as India and China is concerned
22:04We have to go into any relationship with our eyes wide open
22:09You know Trump whatever he is doing
22:11He is doing as far as trade is concerned
22:14He is not asking you know a part of your territory
22:17China is asking for 93,000 kilometers of your territory in Arunachal Pradesh
22:23There is no way that we can go you know as far as you know go to bed with China
22:28Not at all
22:29So you know this whole thing that you know let's go and if we are getting a raw deal from Trump
22:36Let's go and embrace China and all
22:39There are very huge limits to that
22:42China is trying to put you know a string of pearls around you
22:47It doesn't want India to grow UN Security Council Nuclear Suppliers Group membership
22:55It doesn't want you to go
22:57So I think there are strong limits
22:59I think in my view Prime Minister Modi might have thought not twice
23:03But five times before agreeing to go to Tianjin for the SEO summit on 31st August and 1st September
23:11But what Mr. Trump has done is that he has pushed Mr. Modi to go for that meeting
23:17And maybe it will go it will send out a message
23:19Because it is not that we are going to overtly enhance our partnership and friendship with China
23:25But it sends out a message to Mr. Trump to the United States
23:30By that time I think you know this whole pressure tactic when this team comes
23:34That also a little bit of the steam might have gone out of it
23:38Because and India doesn't want to take a confrontational position as Mr. Lula has done
23:44You know he has said I will not call him and all
23:47No India is not in that business
23:49India's relationship with the United States is very broad based
23:54It is very comprehensive
23:56And Mr. Trump alone does not represent all of America
24:02You know what we have been able to nurture over the last 25 years
24:08Just by these statements and you know one tenure of a president
24:12That will not sort of you know take it to the dustbin
24:16The last point you know and you made a very valid point yourself Akshita
24:20What is it that we are going to do as alternatives
24:24And we have just signed a very good deal a very ambitious deal
24:28A very comprehensive deal FTA with the United Kingdom
24:32And that I think has enthused our businessmen our entrepreneurs
24:38Also it is going to happen as far as EU is concerned
24:42We are going to you know soon conclude that
24:46And I think now there will be a double momentum
24:50As far as an increased momentum
24:52To reach that particular agreement
24:54And also get into other agreements
24:58Now as far as BRICS is concerned
25:00You said you know BRICS coming together
25:02I think BRICS has potential
25:04But BRICS also has limitations
25:06And I think India being the original member of that
25:10We can take full advantage of that
25:12In terms of cementing our relations with the countries
25:18With some of the countries but with the others
25:20You know there are limits
25:22And we need to recognize those limits
25:24What Mr. Trump is doing
25:26It will not force us to go with our eyes closed headlong
25:30Into any sort of relationship
25:32Any adversary of the United States
25:34That is not the way we work
25:36We need to protect and safeguard the positive elements
25:41Of our relationship with the United States
25:43And that's why you know there is such a big spotlight
25:45Of what India will do next
25:47Because here is an important ally for India
25:50It works both ways of course
25:51And so what happens in the next 21 days
25:53Could also perhaps decide
25:55What really the India-US relationship looks like as well going forward
25:59Professor Chalani and Ambassador Sajanar
26:01Thank you very much for your time
26:02Thank you for joining us here
26:03On the news track
26:06And let's get you a news breaker also coming in
26:09Which I referred to earlier
26:10About the Pakistan Army Chief
26:12Visiting America once again
26:14Field Marshal Asim Muneer is headed to America
26:18For a second visit in two months
26:20And that clearly signals a deepening bond
26:22Between Pakistan and America
26:24Remember the last time he was there
26:26He was invited to the White House
26:28For a luncheon with Trump
26:29This time around
26:31We understand that he's going there
26:32To be a part of a retirement ceremony
26:35Of a decorated general in America
26:37And so again that tells you
26:39About how much importance
26:41Asim Muneer is actually being given right now
26:44In America
26:45Rohit Sharma with more details on that
26:47Rohit
26:48Just a few details of this particular visitor earlier
26:51The last time around
26:53Asim Muneer was even
26:54Even met with Trump in the White House
26:57Is any such meet schedule this time too?
27:00Well, we obviously do not have details
27:02Into what his schedule would look like
27:04You know, once he lands
27:05He's met President Trump before
27:07He is coming here for farewell
27:09Of General Kurila
27:10Who's a celebrated, decorated general of CENTCOM
27:13Who actually was the first one
27:15In this administration at least
27:16To go out on the record
27:18And praise the Pakistanis for their effort
27:20So he's coming down here
27:22He will be meeting with individuals
27:24From the administration
27:26We do not know if we'll be getting
27:27A second meeting with President Trump
27:28But look what it does
27:29It does send a message to India
27:31In more ways than one can imagine
27:33Number two
27:34It also allows for
27:36If President Trump wants to turn more screws
27:39He can do that
27:40By granting another meeting
27:41With General Muneer
27:43So it is going to be very interesting
27:45As to you know, who he meets
27:46All eyes would be on
27:47What meetings he's able to get
27:49But he's definitely going to be
27:50In the Pentagon at that farewell ceremony
27:53And then again, you know
27:54The optics are looking really bad
27:56You know, this is the Pakistani general
27:58De facto ruler of Pakistan
28:00Getting invited to America
28:02Again in two months
28:03All right, Rohit
28:05Thanks very much for joining us
28:06With those details
28:07Like we said, signifying a deepening bond
28:09Between Pakistan and America
28:11The fact that Asim Muneer
28:12Is headed back to US
28:14To be a part of an official ceremony
28:16In the Pentagon
28:17That's all we have time for
28:19This edition of News Track
28:21Thanks very much for tuning in
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