US vs India Tariff War Explained

That's why the farmer is always in the leaders' tongues but not in their agenda. If BJP makes a mistake of opening this agricultural market in India, they are mixing meat in the food of cattle and cows. The US is showing genetically modified crops, it will be so heavy, here Trump is hitting tariffs on tariffs

and here Trump's hitting tariffs on tariffs,

and here in India, Trump's prayer is being answered. The island where humans did not live, Trump has hit tariffs on that island as well. The US has sent India with such wheat, which was edible for pigs, not for humans. If the war does not stop, I will stop the wheat, the world. 🎶 International deals like India-US trade are not only done by politicians.

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So let's come to the topic. Long before today, it was not that the people who were living of a particular area did not have to get the necessities of that area. In some areas, wheat was more, in some areas rice was more, in some areas fish was more. So in such situations, when people would find out that the thing they were lacking was being sold in a faraway area, they would go there and get that thing. And in return, they would give the necessities of the people there.

So this way, trade was going on at that time. There was no tariff or tax or anything. Now, this went on for many centuries. And when the time of 17th to 18th century BC came, at that time, some traders from today's Iraq, took their goods on donkeys and started trading in today's Turkey.

And started making profits. Now, when this trade was happening in this area, the local rulers there said that you are using our road, using our security, you come to our area,

you make big profits, so we too need a cut from this profit. So the cut in the profit, the permission fees, was called Nishatum. And this Nishatum word was considered one of the oldest written

documented trade texts. Now, the rulers of the area who were taking permission fees during the trade, started using this concept in other parts of the world. But the names were different.

Like, the Greeks used to call the same text Pentecost. Roman Empire was called Portoria. And in India, the name Shul was used. After this, when trade started to be more long-distance, the ports and the borders of the country made more rules for the traders.

When the traders came to trade on the borders of the country, they used to write the name of all the goods brought for trade, their price and the tax on it on a paper and before entering any country to trade, they used to submit this paper on its border. Now, at this time, Arab traders were trading in the Mediterranean,

North Africa, Middle East, Southern Europe, and on the border, the list of goods to be traded on the border was called Tarif. In Arabic, it means information, notification. In the Delhi language, Arab traders used to say, Tarif is more, Tarif is more.

And then this word Tarif, became Tarifa in Europe. And then when it was converted to English, it became Tarif. So, in the 18th century, the king and the government were taking taxes.

Its main job was to generate revenue. There was no ban or trade war at that time. But in the year 1721, India and China were exporting high quality clothes in Britain at a very low price. Because of which the local people of the British textile industry stopped buying the clothes. So the revenue that the British government was getting, the local business was suffering a lot more loss than that.

There, the job crisis had started. So, this was the time when their government realized that while importing goods from outside, revenue is generated, but local businesses are sinking and the dependency on other countries increases.

So, to save themselves from this, what does Britain do? To avoid this, Britain brought the Calico Act of 1721. After this, India and China's clothes were banned. But this didn't have a positive impact. Because other countries tightened their trade policy. And Britain, who wanted to sell goods to the world through industrialization,

faced problems in that. And international relations were also getting worse. In fact, the local people of Britain were also criticizing the British government. That they had to buy low quality clothes at an expensive price. So when all these things started happening, to deal with this, Britain made a plan. This plan is also called tariff schedule in today's language.

What did Britain do at this time? Made a list of all the items coming from foreign countries and divided them into different categories. One category was essential items, which had a shortage and they had difficulty in making it themselves. They didn't take any tax on that. And those that were not essential items or the items that were already being produced in Britain or were being made a direct competition for local businessmen, they were imposed heavy tariffs on them.

Their concept was simple that ban you ban direct goods, relations get bad. So, the goods that are not very important, just impose a heavy tariff on those goods so that when goods come to the local market to be sold, they become expensive. And when they become expensive,

people will not buy them on their own. Problems will be solved on their own. And the current situation regarding tariffs, Trump has also done the same thing. Now it will come forward. So, what Britain did, this concept became so famous that other countries also started using it. So, on 4th of July 1789, US also brought the Tariff Act. In fact, British India also brought the C Customs Act in the year 1878.

Then in the year 1894, the Indian Tariff Act came. So, in this way, tariffs were imposed in different parts of the world, tariffs were imposed in different ways. Now, there was no problem up to this point, whoever wanted to, was imposing tariffs. But on 29th of October, 1929,

Wall Street crashed in the US. The entire US market went down, local industries closed down, jobs started going into the US, and this had an impact on the rest of the world. So when this happened, To deal with this, US President Herbert brought a Sputnik-Hawley Tariff Act to the US on 17th June 1930 to save people's jobs and local industry.

After this time, US President Herbert did some similar things. And when this happened at this time, the other countries also said that we also have to save our local market. So in such a situation,

25 countries imposed reverse tariff on the US. And the situation was that all the countries started imposing tariffs on each other. And this made the situation was that all the countries started tariffing each other. And this created a situation where the economic crisis was already going on and because of the trade war, everyone's goods became expensive and their goods stopped selling.

And the trade that was going on in the whole world, it was 66% down. Unemployment reached 24.9% and US President Herbert, who had this idea, he also loses the election and gets out. So at this time, the world was in the economic crisis of the Great Depression. And it didn't end here. On September 1939, everyone started the World War.

And until the war ended, the economic situation of the countries was in a state of shock. So after all these things happened, everyone understood one thing. That without making a strategy, they are blindly imposing protective tariffs on each other. There is more harm than good. So, everyone decided that they would have to make some rules on the international level regarding tariffs.

So that local industries are also saved and trade is also not shut down. So, after this situation, 23 countries came together. In which India and US were also there. After the US World War, a lot of power was created. So, the US was leading these 23 countries. So, on 30th of October, 1947, after 2.5 months of India's independence,

these countries formed an international body named General Agreement on Tariffs and Trade System, GATT.

Today, nations from around the world have come together to sign the General Agreement on Tariffs and Trade, GATT. A landmark move aimed at lowering tariffs

and reshaping global commerce. And before everyone starts tariffing each other again, a common rule should be made in the world, then everything will run smoothly. Another problem was that while trading, while tariffing, it was favoring the favorite countries and favorite bloc. And the countries of the other bloc were being disadvantaged in tariffs. So, this was also a very important reason for the impact of the trade war in the 1930s.

So, when this GATT was made, a clause was put, an article 1 of the GATT was a clause of MFN, Most Favoured Nation. It said that if a GATT member country will impose a low tariff on the goods of a particular country, then the other member countries will have to pay the same tariff rate. No one can impose a high tariff and others a low tariff. There will be no discrimination, no favourite country, no exclusive deal.

Everyone will be treated equally while trading. But the US used to trade with its neighboring country, Canada, with very low taxes. Similarly, the European Union also traded with low tariffs. So, the problem for them was that the tariffs that were being given to their neighboring countries, i.e. Canada and the European Union, the tariff rate that was being given to the neighboring countries,

had to be given to the other countries as well. So, the US did one thing, in which the MFN of GATT, the most favoured nation clause, was bypassed. The US added Article 24 and 21 in GATT. In which it was said that if two GATT member countries

want to make separate free trade agreements apart from the general rules of GATT, i.e. FTA, and make a mutual understanding, and set a low tariff rate, they can do that.

And the countries that will do FTA will be different from GATT. If they set a tariff rate, they don't have to pay the same to other countries. And a country can do this only if it has a national security issue. So, in the current situation, the same rule applies to all the countries in the WTO. But the FTA is done separately from the WTO.

So, the concept came from here. Now, it will be done in the WTO. Now, when Trump will be elected, it will be done. So, the trade to move forward. After this, during World War, the US focused on quantity over quality and produced wheat, corn, soybeans in bulk.

Because during war, food supply was needed in bulk. If food shortage occurs, it becomes a problem. Now, World War was over, but production was still going on. So, demand was less and production was more. And storing these items was also a problem. It was costing more money.

And at that time, the situation in India was also very dry, dry and starving. In 1954, US President Dwight introduced Public Law 480, Agricultural Trade Development and Assistance Act. It is also called PL 480. that the US had low quality surplus wheat, that is, the extra wheat, talked to India and said that even if you don't have dollars, you can take this grain from the US by giving your currency, that is, Rupee. The US said that low quality grain will also be used, the influence of Russia on India will also be reduced, both will be done. And India also needed it. So on 29th of August 1956,

India signed the PL-480 agreement with the US. And started buying this low quality grain. Now, the quality of the grain that was being bought, in multiple reports, it is mentioned that the cheap wheat that the US was sending, was only for pigs, not for humans. But still, India took it because it was cheaper. Because of this, the local farmers in India were not able to meet the US PL 480 wheat rates.

So, the local farmers also started to suffer losses. And when there is a loss, they reduce the production. And because of this, in just a few years, India's dependency on the US became such that India used to get 40% of the wheat it needed from the US. And the grain that the US used to give, it also used to give slowly. Every other day, 2-3 US of the US would come to the Indian port

and immediately the grains were distributed among the people. Then people would get food. Now, India's dependency on grains was also very heavy. In the year 1965, when India fought with Pakistan, the US threatened India that it would stop the grains. In the same year, the US had a war with Vietnam.

So, India was giving statements to stop the production of grain. In the same year, the US had a war with Vietnam. So India was giving a statement to stop the bombing. The US didn't like either of these things. So to teach India a lesson, India started to delay the supply of this grain. Due to which India had to follow the US's rules. In fact, in the year 1966, in December,

US President Johnson stopped India's actual grain supply. And people in India were in a terrible state. Johnson's daughter requested Johnson not to stop India's grain supply on Christmas. Johnson sent some grain ships to India. It sounds normal to hear that grain was delayed or not sent. But for such a large population, it was like using a nuclear weapon. They would stop the grain and Indira Gandhi had to call the US President again and again

and request him for hours to send supplies. And once Indira Gandhi felt so disrespectful that she had to request so much for the grain that she hung up the phone and decided that whatever happens, India will not give up its food for any other country. And then slowly, reforms came and the dependency of grains decreased. In fact, after the war of 1971, India shifted more towards Russia.

Now, what happens after 3 years is that in 1974, US introduced a Trade Act of 1974. In its Section 501-506, they introduced a generalized system of preference, i.e. GSP. In this, it told all the developing countries around the world to sell their local products in the US. The US would impose zero or almost zero tariffs on it. The US did this so that the Soviet Union, i.e. today's Russia, would have less influence on these developing countries.

The developing countries of the world should be connected to the US-led trading system and were towards the US. And the Generalized System of Reference, that is, by bringing the GSP, one more thing happened, that the US shifted its labor-intensive, low-cost labor work to developing countries. And it worked on the high-tech products, which had more money, so that the US had control over the important things in the world's supply chain. And the labor-intensive, low-cost jobs,

their time shouldn't be wasted on them. On 1st of January 1976, more than 100 developing countries, including India, joined this US GSP system. And after joining, India got the benefit that 2000 products that were sent to the US by India, could be exported duty-free. Now, India also the benefit of exporting 2,000 products to the US for duty-free.

India joined GAD, took benefit of US GSP and Russia's military weapon support. India needed to manage things from all sides and benefit from wherever it could. But India maintained one thing that to save their domestic local market, they should impose as much tariffs as possible so that foreign companies don't become competition for Indian companies. In fact, in the year 1980, India became the country that imposed the most tariffs in the world. 350% tariff on textile, 100% tariff on industrial items, and with this, India had also imposed quantity restrictions.

So when US and West's products came to India, they became so expensive that they were not sold. And US did not like this at all at that time. US tried every possible way to reduce its tariff so that it would be easier to sell US products in Indian market. But India did not agree. But after this, when it was the time of year 1990-1991, at this time, there in an economic crisis.

India went to the IMF and World Bank for help. The IMF and World Bank are influenced by the US and the West. The IMF said that they will give loans but the economy has to be structured. After a while, India allowed liberalization, privatization, globalization, LPG. So, in this way, the doors of Indian economy started opening for the US and the West. The maximum tariff in India was up to 355%. India reduced it to 50% by 1995.

And slowly it came down to 20%. And the gap in 1995 was the same year, the GATT was replaced and a little formalized and some sectors were added to make a permanent international organization World Trade Organization. The same rules were there for GATT, that you will give tariffs to one country and to all. All the rules were the same, but some services were added. So in 1995, India had already opened its market for the US.

But after 6-7 years, in 2003, the US companies like Monsanto, Cargill, Tyson Foods started creating pressure that India is taking a lot of concessions from the US. But India is not opening its agriculture and dairy market for the US. There were a lot of discussions, multiple meetings, pressure was put on India, but India did not agree. India did not open its agriculture and dairy market at all. Now, why did India not open its agriculture and dairy market, and why can't it open it in the future?

And why is this agriculture and dairy market still at the root of the US-India trade deal. India did not open its market here. In the next 10 years, different presidents came, like Bush and Obama. They were behind India in this time, but India did not open its market. In 1997, India and US clashed in the WTO. In 2007, India and the US clashed in the WTO. After that, in 2007, India and the US clashed over border tax. In fact, India didn't open its agriculture market.

In 2012, the US banned poultry and some agricultural items. The US complained in the WTO in DS-430. A case was also filed on this. So, the situation that was going on at that time between India and the US regarding the agricultural market didn't get that big at that time.

Because at that time, the US was fulfilling its needs from the Chinese market. That is, the US farmers were selling their products in the Chinese market. So, this big issue didn't happen. But the US kept putting pressure on India. So, till year 2016, all these things kept going on. But the real game changed in year 2017 when on 28th of January 2017, Trump came as the US President.

Now, all the US Presidents who came till now, their way of handling tariffs and trade was different. But when Trump became president, his basic worldview was that if US has a trade deficit, meaning if America is buying more than any other country, but US is not able to sell as much as it should,

then it is a loss for US. For example, China is selling its 100 rupees goods in the US. But the US is able to sell its goods in the Chinese market for only 50 rupees. So, this 50 rupees trade deficit was considered a loss for the US. So, this 50 rupees trade deficit is a negative sign for the US. Although, experts avoid calling this trade deficit a direct loss.

They see it as an accounting gap between import and export and then study it. But Trump considers trade deficit to be very bad. So in the year 2017, when Trump came, the US trade deficit was more than $800 billion. And in this alone,

China's trade deficit was $375.2 billion. So seeing this number, China became the biggest villain in Trump's eyes. So Trump made a plan from here made China the biggest villain. So, Trump made a plan and it was very simple. He wanted to make China buy more goods from the US so that the trade deficit would be reduced. He wanted to reduce the trade deficit of other countries as well.

But China had a lot of goods so Trump was after China. But it was not easy to get all this from China. So, Trump planned to impose tariffs on China So that when goods from China will come to the US, it will become expensive due to tariffs And people will buy less goods from China So the trade deficit will decrease And when Chinese companies that sell goods in the US will face losses

And when jobs will go to China Chinese companies and people will put pressure on China So it will be easier to negotiate with China. So, thinking this, Trump used Section 301 of Trade Act of 1974 on 22nd March 2018 and tariffed China's $50 billion exports by calling it an unfair trade. China went to the WTO, filed a DS-543, that Trump is doing all these things wrong, but nothing happened.

After this, China took another step. What did China do? When Trump won, Trump got a lot of support from rural and non-metro voters. In 7 key states, Trump took a huge lead from Clinton. According to the data of the Pew Research Center,

more than 35% of Trump's voters come from rural areas. During the election, Trump made big promises to the farmers. So China knew very well about the Trump's dependency on the US farmers. So in response to Trump's tariff, China imposed a 50% to 25% reverse tariff on 128 American products. Out of which 94 were US Food and Agriculture products category.

Which included fruits, tree nuts, etc. and put a tariff on it. Out of which 94 were US Food and Agriculture products category. Which included fruits, tree nuts, etc. And then after a few days, US put a tariff on 659 agricultural products. So, this way, a trade war started between US and China. And this entire war, in this war, tariff was put on products imported from China worth $360 billion.

And this entire trade war, the US tariffed on products worth $360 billion imported from China and China tariffed on US products worth $110 billion. with tariffs and counter tariffs reshaping global markets and raising fears of a broader economic slowdown. Now, China was a huge market for US farmers. 60% of the total soya bean exported by US farmers were exported to China. This trade war resulted in the 32.9 million ton agriculturals of agricultural products were exported to China from the US. By 2018, it was 8.2 million tonnes.

And China fulfilled its demand by importing goods from Brazil. So, here, the US took over a huge market like China. And when Trump saw the crisis of US farmers due to this trade war, he compensated US farmers with $28 billion. In fact, US GDP fell to 0.04%.

US people had to pay $51 billion in additional costs for this tariff. So Trump had to find an alternative market for China. And if you want to find an alternative to China, you can't do it in small countries. There was only one alternative to China, and alternative, India. If India opens its agricultural market, Trump's problem will be solved by his farmers. And US will not have to depend on China. So Trump had to open his agricultural market. What did the US do? The US put India in the GSP, Generalized System of Preference, which I had told you earlier. So Trump removed India from this.

And after this, to open the agricultural market, back-to-back negotiations were started with India. And India did not just open the agricultural market, Under the Finance Act 2020, India implemented Digital Service Tax, DST, implemented In which the US companies like Amazon, Google, Netflix, Apple, Facebook 2% digital service tax was imposed on them Now, this angered Trump a lot First, he didn't open the market

And on top of that, tax was imposed So Trump was very angry And before Trump could do anything Trump loses the election And in 2021, Biden comes to power. After Biden's arrival, US-China tension was reduced. After multiple talks, China increased the buying of US agricultural products again.

And from China, US agricultural exports reached 40.9 million. So, all these things went on for some time. And then, after this, in the year 2025,, in the year 2025, Trump becomes President again. And this time, the same thing happened. In the election, US farmers supported Trump a lot. And Trump also made big deals with the farmers during the election. And after Trump's arrival, the US trade deficit increased even more.

It became 1.2 trillion dollars. Among which, China had the highest trade deficit. 295 billion. So, as soon as Trump came, he did the same thing as before. He tariffed China. And in return, China did the same thing. China tariffed 21 billion dollars worth of US agriculture and food products.

And then, they tariffed rare earths as well. So, this time, again, they tariffed each other from 84% to 125%. And the US farmers, the Trump vote bank, they were again harmed. Cargill's revenue decreased by 10%.

ADM's revenue decreased by 8.9%. Bunch's by 10.8%. What this means is that Trump is trapped again. And with the agricultural sector, Trump again went to India for the agriculture sector. India again refused to open the sector. What is it that India has been refusing to open?

India cannot open the sector even if it wants to. And I'll tell you why I'm saying this. Actually, a while ago, around the year 1974, there was a company in the US, Monsanto. They used to make a herbicide chemical called Roundup and sell it. The weed that grows in the middle of the crops, this Roundup chemical used to kill it. But the problem was that this chemical also had an impact on the crops.

This reduced the productivity of the farmers. So what did this Monsanto company do? Genetically modified the seeds of soybeans and made it so that if you spray their Roundup chemical on the crops grown from this genetically modified seed, then the crops will be fine, but the wild grass will be completely destroyed. And this experiment of theirs worked. When the farmers used this genetically modified seed,

the growth of the crops increased a lot and these seeds and these seeds became famous in a very short time. And when it became famous, the process through which they made genetically modified soybean seeds, through that process they made genetically modified seeds of other crops. And in a very short time, the US farmers, left the normal seeds and started buying these genetically modified seeds instead of normal seeds. The seeds and chemical sprays made by Monsanto were sold in bulk.

Monsanto had patented both these genetically modified seeds and Roundup chemical. And when they gave seeds to US farmers, they also got them to sign a contract. In which it was already mentioned that you cannot store seed cannot be stored for next season. And even if GM seeds are stored, they do not yield the same results in the next season. And in contract, the chemical used on these crops will also be Roundup. You cannot use any other company's chemical. Now, as time passed, the US farmers' dependency on GM seeds increased.

And with time, the farmers' cost increased. Because wild grass used to make resistance against this Roundup chemical season by season. So, every season, compared to last season, more chemicals were used. So, as GM seeds were genetically modified, their trend moved ahead. So, the normal seeds started disappearing from the market. Because their demand was low.

At the same time, India's cotton farming was facing a big problem. A bug, Bolvom, was spoiling Indian cotton crops. Farmers were suffering a lot. To deal with this, India talked to the US company Monsanto. And a company in India, Myco, together with them,

they developed genetically modified BT cotton seeds. These seeds were developed in such a way that when plants were made from them, they themselves killed the ballworm insects. So the problem was solved. And along with that, the production of cotton increased threefold. But as time went on, the genetically modified seeds, the problems related to genetically modified seeds started to arise.

Common farmers who used normal seeds were out of competition. Because genetically modified seeds produced more in less money. The benefits of genetically modified seeds were there. But the major part of the benefits was being taken by the US company Monsanto in the name of royalty. 450 grams of BT cotton was worth for Rs 1600-1800. Out of which, Rs 1250 was being sold to the US company, Monsanto, in the name of royalty.

And every year, the quantity of pesticides used on it increased. So, the cost of the farmers increased. And the seeds of this cotton couldn't be stored. So, every year, newonsanto to reduce their royalty. But Monsanto didn't listen. Then the case went to the court. The court ordered Monsanto to cut 70% of its royalties.

And when this happened, Monsanto left India. And this issue of royalty was not the only problem of genetically modified seeds. Many other issues are linked to genetically modified seeds. GM seeds are used in areas where someone else uses normal seeds. So, they are also impacted. Suppose there are two farmers and one of them uses GM seeds. The other farmer, who uses normal seeds, is also affected by the effects of GM seeds. This happens because bees and insects cross-pollinate.

This causes the DNA of GM seeds to mix with normal seeds. As time passes, the normal crop also loses its originality and GM seeds start to be used. And this type of DNA mixing that happens with time, creates a new problem for India. If India uses GM crops for a long time, then there will be dependency on the US.

Along with that, the normal crops and seeds will start to have the property of genetically modified seeds. And one problem with this is that GM crops are banned for human consumption in the European Union, Russia, Serbia, Algeria, etc. That is, they are banned for human consumption. So if we use GM seeds more, India will have a problem exporting its crops. Because the countries that ban GM seeds, the reason for GM contamination is given at the border of the country's border, due to GM contamination,

the entire consignment is rejected. And once normal crops are mixed with GM crops, it is very difficult to return from there. Another case is that if you assume that the US has a lot of pressure, they are imposing tariffs,

the GM crops, as it is, should be imported for their use. So that the US's pressure that has been coming for so many days, reduces. as it is, to import for their use. So that the pressure of the US is reduced. So, there is a problem in that too. Because what happens is that in the US,

advanced level fertilizers, chemicals and machines are used for farming. And along with that, the US government also gives billions of dollars of subsidies to its farmers. So, the costing of US farmers to produce crops is comparatively less than that of India's farmers. If we take the example of the price in the US, it is Rs.1700 per quintal. Whereas in India, the MSP of corn is Rs.2400 per quintal.

So, the local Indian farmers who import from the US will not be able to compete. And when they won't be able to compete, they will be far from farming. Like what happened with the PL-480 wheat case. Instead of growing it themselves, it became dependent on the US. And then the US took advantage of this and in other situations, the pressure was built up there.

And the US has a very high chance of doing this. The US has also done bad to other countries with whom it has exported GM crops. In the 90s, Canada and Mexico under the NAFTA trade agreement reduced tariffs on genetically modified seeds.

The US had created pressure. The US had filled the Mexican market with its genetically modified corn. The poor farmers of Mexico couldn't compete and more than 20 lakhs of Mexican farmers stopped farming and shifted to cities. Similarly, Haiti used to impose 35% tariff on its agricultural market but had to take a loan from the World Bank and IMF. So they increased the pressure to reduce tariff and Haiti had to reduce the tariff by 3% from 35% in its agriculture sector.

The US farmers' product entered the country of Haiti. And the local farmers couldn't compete with them. Their rice farming completely collapsed. The situation was that Haiti had to depend on the US for 80% of its rice. And the same thing was done to the poultry farmers of Nigeria.

This is the problem in the dairy sector as well. And the same thing was done with the poultry farmers of Nigeria.

This is the problem in the dairy sector as well. In India, more than 8 crore farmers, approximately 40 crore people are directly or indirectly involved in milk production. The average cost of milk in India is Rs 50 per litre. If we compare it with America, where subsidies are available, milk is comparatively cheaper here. So if India reduces tariffs in the dairy sector and opens a dairy market for the US, then US milk will cost India 30-35 rupees per litre.

And when US's cheap milk will be sold in India's market, then India's dairy sector won't be able to compete. Anyway, India's dairy sector is 3-5% of the market. So if they are given entry,

small dairy farmers will also go into loss. And secondly, cattle and cows in the US should produce well. For this, protein is good in their diet. So, blood meal and meat bones are also added. It means that non-veg is fed. And BST hormones are also injected. So, this is not allowed in India.

Now, when goods are ordered from outside India, then a certificate is asked from the outside country that they are not feeding their cattle and cows with non-vegetarian food. So, religious sentiments about this will also rise in India. And out of the total population of India, 45-48% people are dependent on agriculture. That's why you must have seen that the farmers, even if they don't live under the real agenda of the politicians, but they do live under their speeches. In Indian GDP, agriculture contributes 17-18%.

So, now, this Trump who is behind India's agriculture sector, if the BJP government opens the agriculture market under pressure, it will have an impact on the election. So, the government is also trapped on both sides. And the agriculture sector is such that it has a direct impact on the land. It is not something that can be covered up with news manipulation. So, there are so many reasons why the Indian government cannot up the agriculture and dairy sector for the US. But Trump needs a big agricultural market outside the US. So Trump created different pressure points for this.

He did multiple things. Like a while ago, he came up with Executive Order 14257. In which he used a formula. This is that formula. Pause and see. Using this formula, Trump imposed tariffs on countries all over the world. How many tariffs are there in which country? This is the formula. Pause and see. Trump used this formula to impose tariffs on countries all over the world.

This is the list of countries he imposed tariffs on. He imposed 26% tariffs on India as well. He had increased it to 25% later. In fact, he imposed 10% tariffs on the Herd and MacDonald Islands where humans and penguins live. So, Trump is either pausing or removingiff or removing it by demanding what he wants. Trump's tariff game worked in other countries but not in China and India.

India refused to buy agricultural land in the first 25% tariff. Then Trump increased the tariff by 25% to buy Russian oil. So India has now a 50% tariff on India. That is, India has now imposed a 50% tariff on India. Even after this, India did not agree. In fact, the FTA between India and the US, the Free Trade Agreement,

in which both sides were discussing multiple rounds, they also finalized a lot of things. Even in that, when Trump imposed a 50% tariff, after the Pehlgam issue, the Nobel Peace Prize issue, after Operation Vermilion, the Nobel Peace Prize issue after the operation Sindhur After all these things, there is a stalemate between India and the US

in this free trade agreement No one is ready to back down So the situation now is that Trump is looking for different pressure points in India on which he can get leverage and negotiate something to do something in the agricultural market So what will be Trump's next move?

We will find out in time But for now, the 50% tariff burden that Trump has placed on India will not be a problem. It will have an impact. For this, India is trying to sign FTAs with small countries and fulfill this loss. If we talk about the impact of this tariff, India exports a total of 820 billion dollars of goods and services to the world. And if we talk about goods only, India exports 437 billion dollars worth of goods to the world.

And out of this, India exports 87.3 billion dollars worth of goods to the US. I am talking about goods because the 50% tariff imposed by Trump on India is based on the goods exported by India, not on services. And in goods exports, Trump also excluded the US needs like generic medicine, pharmaceuticals, smartphones from the tariff list. Mainly, Trump imposed tariffs on textile, garments, footwear, jewelries.

This means that some segments of the $87 billion amount some of it is still left. FIEO is an exporters body. It has said that it will impact on 55% of shipments. So, if we take a rough idea, this is not exact, then it will directly impact on the $48 billion trade. And this amount has to be fulfilled by India from other countries.

Otherwise, there will be a problem. And you must have seen in the news that India is signing FTA from other countries. Otherwise, there will be a problem. And you must have seen in the news that India is signing FTAs from different countries. Or there is talk of FTA being signed. If there is any other major development in this, then I will update you. Lastly, I would like to remind you again

about the Test Book's money-back sale. Where you can take a full year's subscription for Rs 299. for Rs 299. And use the coupon code NITISH to get a 12% extra discount. Link is in the description. Thank you.