December 19, 2024
6 mins read

Trump threatens reciprocal tax on India 

Trump criticised the disparity in tariffs, highlighting that India and Brazil impose steep duties on US imports, while the US does not respond in kind….reports Asian Lite News

 

US President-elect Donald Trump has reaffirmed his commitment to imposing reciprocal tariffs on countries like India and Brazil, which he claims levy high duties on American products. Speaking at a press conference at his Mar-a-Lago resort, Trump emphasized the need for balanced trade practices. 

“Reciprocal. If they tax us, we tax them the same amount,” Trump stated. He criticised the disparity in tariffs, highlighting that India and Brazil impose steep duties on US imports, while the US does not respond in kind. 

Using a hypothetical example, Trump said, “If India charges us 100 or 200 percent on a bicycle, and we charge them nothing for the same, it’s not fair. If they want to charge us, that’s fine, but we’ll charge them the same in return.” 

Trump’s remarks came in response to a broader question about potential trade agreements, particularly with China. He underlined his administration’s focus on ensuring fairness in international trade. 

Howard Lutnick, Trump’s pick for Commerce Secretary, echoed this sentiment, emphasizing that reciprocity would be a cornerstone of the new administration’s trade policies. “How you treat us is how you should expect to be treated,” Lutnick stated. 

The comments signal a tougher stance on trade relations with countries perceived to exploit tariff imbalances, setting the stage for potentially significant shifts in US trade policy under the incoming administration. 

Trump names India critic for civil rights job 

President-elect Donald Trump has named Republican Party activist Harmeet Dhillon, who is a supporter of the farmers’ protest in India and raised allegations of “Indian death squads”, to be the assistant attorney general for civil rights.  

“In her new role at the DOJ (Department of Justice), Harmeet will be a tireless defender of our Constitutional Rights, and will enforce our Civil Rights and Election Laws FAIRLY and FIRMLY”, Trump said on Truth Social announcing on Monday. 

Trump also noted that she “is a respected member of the Sikh religious community”. 

On social media X, Dhillon who goes as “@pnjaban”, has expressed support for the farmers’ protest and raised what she said were “apparently Indian death squads operating in North America targeting Sikh activists”. 

In a criticism of the administration of President Joe Biden, she virtually accused it of a cover-up, writing, “Our government refuses to provide details. Why”? 

The mention of “death squads” was an apparent reference to the case filed against an Indian citizen and a former RAW official accusing them of plotting to kill a Khalistani activist in the US and echoes Canadian Prime Minister Justin Trudeau’s accusations against India. 

Mentioning her family’s agrarian roots, another post by Dhillon said, “I stand with the #FarmersProtests”! 

In yet another post she urged Prime Minister Narendra Modi to meet with the protesters and make a compromise. 

“As the Punjab-born descendant of farmers, my heart breaks to see Punjabi farmers assaulted for protesting Indian gov’t’s pro-big-corporation farm bill that will destroy their farms, way of life, and culture. Hear them, meet with them, & compromise, PM Modi”, she posted.  

The post of assistant attorney general for civil rights, for which she has been named, does not directly have international responsibilities and it does not oversee the two controversial cases involving India. 

The ongoing case alleging the conspiracy against the Khalistani will not come under her purview as it will be the domain of the assistant attorney general of the national security division. 

The case alleging bribery by Indian business leaders is under the deputy assistant attorney general in charge of the Criminal Division. 

Trump has not announced names for those positions.  

“Throughout her career, Harmeet has stood up consistently to protect our cherished Civil Liberties”, Trump said in his Truth Social post. 

He added, “Harmeet is one of the top Election lawyers in the Country, fighting to ensure that all, and ONLY, legal votes are counted”. 

If her appointment is approved by the Senate, Dhillon will become the second Indian American to hold the top civil rights position after Vanita Gupta, who held that position in former President Barack Obama’s administration and was the associate attorney general for two years under President Biden. 

‘Leaving India-US ties in a perfect place’ 

The outgoing Biden administration has emphasised that it is leaving the US-India relationship in a robust state, expressing confidence that this partnership will continue to thrive under President-elect Donald Trump. 

Deputy Secretary of State Kurt Campbell noted the ambitious progress achieved during Biden’s term, including high-level engagements such as the QUAD summit in Delaware. 

In his remarks during a conference call, Campbell assured that the bilateral relationship would transition to the incoming administration at its strongest, with substantial backing from industries spanning technology, finance, and defence. 

Principal Deputy National Security Advisor Jon Finer echoed Campbell’s sentiments, highlighting the US-India partnership as a stabilizing force not only in the Indo-Pacific but globally. 

He pointed to joint initiatives in space, including training Indian astronauts at NASA’s Johnson Space Center for an upcoming collaborative mission to the International Space Station. 

“This partnership plays a critical role in driving development, building prosperity, and ensuring security across regions,” Finer remarked. 

The administration officials underscored the bipartisan consensus underpinning US-India ties over the past two decades, attributing their resilience to consistent efforts across successive governments in Washington and New Delhi. 

This continuity is also reflected in the QUAD alliance, which originated under President George W. Bush and gained momentum through the Trump and Biden administrations. 

A senior official described India’s growing ambition as a driving force within the QUAD, citing significant progress in areas such as space exploration, technology, and defence. 

“India has expressed its commitment to advancing these endeavours, and we expect this ambition to persist,” the official stated. 

Looking ahead, the Biden administration foresees continued collaboration in intelligence sharing, Indo-Pacific engagement, and Indian Ocean initiatives, bolstered by bipartisan support. 

Officials stressed that the US-India relationship transcends any single administration or framework, driven instead by shared interests in technology, defence, and global economic issues. 

“This enduring partnership is a testament to the shared vision of both nations, and we have every reason to believe it will remain strong,” a senior official concluded. 

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Pakistan Risks Overstretching Itself in Yemen War

Pakistan’s expanding military role in Saudi Arabia amid the Yemen conflict could strain its defence resources and fragile finances…reports Asian Lite News Desk Pakistan’s military involvement in the war in Yemen may prove unsustainable because of mounting financial pressures and competing security demands, according to a new report. Islamabad’s growing military presence in Saudi Arabia risks stretching its defence resources while exposing the country to greater strategic and economic challenges. An article by Andrew Wilson in One World Outlook describes Pakistan’s involvement as a case of “fiscal and strategic overreach”, arguing that the country lacks the financial flexibility to sustain an expanded military commitment. Pakistan’s external finances depend heavily on an International Monetary Fund (IMF) programme, financial support from Gulf countries and remittances from Pakistani workers in the region. The report argues that deeper military involvement in the conflict could place additional pressure on these sources of financial stability. It also warns that deploying troops and military equipment abroad could weaken Pakistan’s capacity to address security challenges along its eastern border and deal with two domestic insurgencies. The move could also draw Islamabad into a conflict it has sought to approach cautiously. A Reuters report in May, citing Pakistani security and government sources, said Islamabad had deployed around 8,000 troops, a squadron of approximately 16 aircraft, mostly JF-17 fighter jets, two drone squadrons and a Chinese HQ-9 air-defence battery to Saudi Arabia. According to those sources, Riyadh was financing the deployment, with Pakistani personnel operating the equipment. The sources also said a confidential agreement contemplated the possibility of deploying up to 80,000 troops. Islamabad has not confirmed those figures, although it has acknowledged its military presence in Saudi Arabia, including the deployment of fighter jets at King Abdulaziz Air Base from April. The One World Outlook article argues that Saudi financial support can cover allowances and operating expenses but cannot easily replace military equipment needed elsewhere or resolve the political and strategic challenges of participating in the Yemen conflict. Pakistan’s defence budget is another concern. For the 2026-27 financial year, the federal government allocated PKR 3 trillion, or approximately $10.8 billion, to defence services. The allocation represents an 18 per cent increase from the original PKR 2.55 trillion provision and amounts to around 2.1 per cent of projected gross domestic product (GDP). Defence spending accounts for approximately 16 per cent of the federal government’s PKR 18.8 trillion expenditure. Military pensions are budgeted separately at PKR 822 billion, while debt servicing costs stand at approximately PKR 8 trillion, more than two-and-a-half times the defence allocation. The report argues that these competing financial obligations leave little room for additional military expenditure without placing further pressure on public finances. Pakistan’s reliance on IMF assistance also limits its fiscal flexibility. The country must meet the conditions attached to the programme, including a primary budget surplus target of 2 per cent of GDP and continued restraint on development spending. According to the article, these requirements make it difficult for Islamabad to finance an additional military commitment without compromising other budgetary priorities. Pakistan’s economic indicators offer limited reassurance. Economic growth for the 2025-26 financial year is estimated at between 3.6 and 3.7 per cent, while inflation reached approximately 10.3 per cent in September following an energy price shock. Foreign exchange reserves stood at around $21.5 billion at the end of September. Although this marks an improvement from the low levels recorded in 2023, the report notes that the reserves cover only a few months of imports. Financial assistance from Gulf partners remains central to Pakistan’s external stability. The article says Islamabad holds approximately $8 billion in Saudi deposits at its central bank. In July, the State Bank of Pakistan said Riyadh had extended the maturity of $5 billion in deposits to December 2028, easing the country’s immediate external financing requirements. A further $3 billion deposit was also extended in the spring. However, the article argues that these arrangements provide temporary relief rather than long-term financial independence, particularly as regional conflict threatens the stability of the Gulf economies on which Pakistan relies. The report concludes that Pakistan faces a difficult balance between supporting Saudi Arabia militarily and preserving the financial and military resources needed to address its domestic and regional challenges.

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