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3 Things

The Catch Up: 3 April

Apr 3, 2025
Trade tensions take center stage as new U.S. tariffs threaten India's diamond and pharmaceutical sectors, reshaping global trade dynamics. Meanwhile, the Waqf (Amendment) Bill sparks intense debate in Indian parliament, with accusations of cultural vandalism surfacing. Rahul Gandhi adds fuel to the fire by criticizing the government’s handling of the border dispute with China. The interplay of politics and economics paints a complex picture of current affairs.
03:47

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Quick takeaways

  • The implementation of a 27% tariff by the Trump administration on imports from India could significantly affect key sectors like diamonds and pharmaceuticals.
  • Debate surrounding the Waqf Amendment Bill highlights political tensions in India, with accusations of misinformation and cultural vandalism drawing sharp reactions from various parties.

Deep dives

Impact of New Tariffs on India-US Trade Relations

The Trump administration's implementation of reciprocal tariffs, including a significant 27% duty on imports from India, is set to impact several key sectors such as diamonds, smartphones, solar photovoltaic modules, and apparel. Although some products, including critical minerals and pharmaceuticals, may escape these tariffs, major exports like pharmaceuticals valued at $8 billion remain vulnerable. The unchanged tariffs on steel, aluminum, and automobiles further complicate the trade landscape, suggesting a potential reshaping of India-US trade relations. This situation could lead to a reevaluation of trade partnerships and strategies, highlighting the importance of adaptability in global market dynamics.

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