This year has not been good for India and America from business and diplomatic point of view. There was tension in the relations between the two countries. Meanwhile, well-known US MP Raja Krishnamurthy held President Donald Trump’s policies responsible for weakening the relations between the two countries and the economic and security cooperation between the two old partners.

Indian-origin American MP Raja Krishnamurthy said, “US-India relations are not good right now for many reasons. Trade is a major reason for this dispute. The decline in relations has come at a time when there is a need to be more careful. Especially in South Asia, there is a greater need for coordination between the two countries.” “We need to come closer to each other now to ensure that the neighborhoods in that area remain safe,” he said. Along with this, it has been warned that armed groups can take advantage of the poor coordination between India and America.

At the same time, blaming the US President for this tension, Raja Krishnamurthy said, “Donald Trump came to office and everything changed in US-India relations. There has been a decline in both economic and security cooperation.”

It is very bad to mix with Pakistan’s army chief – Krishnamurthy

Recently, the closeness between Pakistan and America has been seen increasing. Regarding this, the American Congressman said, “Trump’s association with the military chief of Pakistan, and even removing the government of Pakistan, is very bad. The President left out the people of the Pakistani government and invited him (Asim Munir) for lunch at the White House.”

He said, “This shows how poorly our foreign policy is being made right now. When you alienate your friends, partners and allies like India and bring closer your enemies or strategic rivals like China or Russia, you show weakness and when you show weakness, you invite anger. When you are angry, you encourage fighting and perhaps war.”

Krishnamurthy said on Trump’s imposition of tariffs on India

Regarding the reduction in tension between the two countries, he simply said that as long as Trump continues to impose arbitrary tariffs on India and harass the Indian people, he is making a huge strategic mistake. “He is hurting America, hurting our economy and hurting our ability to lead in the world.”

Also read: Neither any post nor like any post… Indian Army’s new policy for soldiers regarding social media use.

Lawmakers Warn Trump: A new tension has arisen in the trade relations between the two countries after US President Donald Trump imposed high tariffs of up to 50 percent on some Indian products. This step of the American administration has not only affected India’s economy, but opposition to it is also increasing within America. Experts and lawmakers say such a drastic decision on tariffs could have a long-term adverse impact on India-US relations, which have been based on cooperation, security and economic partnership for decades. It is also being said that due to increase in trade barriers, the profits of American companies have decreased and due to increase in import costs, there has been additional burden on consumers.

Indian-American MP Amy Bera raised this issue seriously in the US Congress and criticized many policies of the Trump administration. In particular, he termed the additional fee of $100,000 on H1B visa as excessive and impractical. Amy Bera says that this heavy duty is weakening the ability of American companies to include foreign talent in their industries. Given the important role Indian professionals play in Silicon Valley and the tech industry, such a move harms America’s technological edge. He also said that these additional costs hurt small and medium-sized American companies the most, who already face global competition.

Tariff threatens US-India people-to-people connect

Behera also warned that high tariffs and stringent visa policies are not only having an economic impact, but are also harming the people-to-people connect between the two countries. The biggest strength of India-US relations has been people-to-people cooperation, technical exchange and education-trade relations. If it is disrupted, it will directly weaken the long-term strategic partnership between the two countries. In this context, he referred to Prime Minister Narendra Modi’s recent meetings with Russian President Vladimir Putin and Chinese President Xi Jinping and indicated that tough American policies could tilt India towards other superpowers.

Democrat MP Pramila Jayapal widely criticized the tariff policy during her address to Congress. According to him, the high import duty policy of the Trump administration has definitely affected the Indian economy, but due to this, American businesses and consumers are also suffering equally. Due to high import costs, the production of American companies is becoming expensive, due to which the prices of their products are increasing and competition is decreasing. He warned that this situation could pose a threat to America’s economic stability and the health of the market.

Anti-Indian sentiment is increasing in America

Expressing special concern, Pramila Jaipal said that anti-Indian sentiment is increasing rapidly in America in recent years. He says that the tense trade environment between India and America and the strictness of visa policies is further increasing this sentiment. Whereas the reality is that the contribution of Indian-Americans is extremely important in the fields of American economy, education, technology and innovation. Crores of people of Indian origin play an important role in American development through taxes, employment and investment in America, hence such policies are also against America’s own interests.

Talks regarding trade deal have been going on between India and America for a long time. This agreement has been broken once, but now talks have started again. However, uncertainty over this has increased due to rising tariffs and political rhetoric. On the other hand, India has recently reduced the purchase of crude oil from China, due to which America has imposed an additional 25 percent tariff on India. Due to this, geopolitical complications are also increasing in India-America relations. If the tariff war continues, India may gradually lean more towards countries like Russia and the Middle East for energy and trade, which could weaken America’s strategic position in the Asia-Pacific region.

Read this also: Rupee again in the abyss, due to these three reasons the Indian currency reached record low.

After America, now Mexico has also given a big blow to India. Mexico’s Parliament has approved a new bill, under which heavy tariffs ranging from 5% to 50% will be imposed on goods imported from many countries including India, China, Brazil. This law will apply to countries with which Mexico does not have a free trade agreement (FTA)—which includes India. This new fee structure will be applicable from January 1, 2026.

Mexico Parliament passes high-tariff bill
Both houses of the Mexican Parliament – the Senate and the lower house – have approved this bill. President Claudia Sheinbaum introduced it in September, proposing to increase import duties on 1,463 products.

Which products will be expensive?
The areas where fees have been increased in this law include:

• vehicle parts
• light vehicle
• plastic products
• toys
• clothing and apparel
• Furniture
• Shoes
• ready-made clothes
• aluminum products
• glassware

Tariffs ranging from 5% to 50% can be imposed on all these categories.

Why impact on India?
India does not have any FTA with Mexico, so this law will directly apply to Indian exports. India was Mexico’s 9th largest trading partner in the year 2023, and the total bilateral trade between the two countries stood at $10.58 billion. This means that many products sent from India will now become costlier in Mexico, which may affect the competitiveness of Indian companies.

Biggest impact on China, but India also affected
The government estimates that this move will generate additional revenue of $3.8 billion for Mexico every year. Although the biggest impact will be on China’s exports, India is also among the major countries which will have to face the brunt of this new law.

America had also taken a similar step
Earlier in August, America had increased the customs duty on many products imported from India to 50%. Now after Mexico’s decision, the pressure on Indian trade may increase further.

An American lawmaker has said that President Donald Trump’s policies towards India are causing real and permanent damage to strategic trust and mutual understanding. He said that Washington will have to take steps with incredible urgency to minimize the damage caused to bilateral relations.

Cindy Kamlager-Dove, a Democratic Party MP from California, said, ‘…If Trump does not change his policy, he will become the American President who loses India. To put it more clearly, they alienated India while empowering the Russian Empire. He has broken the transatlantic alliance and endangered Latin America. This is not a legacy any president should be proud of.

He said, ‘When history books will be written and told where Trump’s hostility towards India started, they will point to something that has nothing to do with our long-term strategic interests. This thing is his personal passion for the Nobel Peace Prize. This may be ridiculous, but the damage it will cause cannot be taken lightly at all.

Trump has said he should receive the Nobel Peace Prize because he ended conflicts around the world, including the one between India and Pakistan in May. Kamlager-Dove was addressing the meeting of Parliament’s South and Central Asia Foreign Affairs Sub-Committee on the topic ‘US-India Strategic Partnership: Securing a Free and Open Indo-Pacific’.

Kamlager-Dove criticized Trump’s policies towards India. These policies include imposing 50 percent duty on India, the highest in the world, imposing a fee of US $ 100,000 on H1B visa. A large number of Indians use H1B visa to live and work in America. He said Trump’s policies are causing “real and lasting harm” and the country needs to act with “incredible urgency” to mitigate that damage.

Also read:-
Trump’s message for India in defense deal with PAK? America will increase the strength of F-16 weapons, an agreement worth billions for 2040

China Trade Surplus: Amidst the imposition of high tariffs by America, China has crossed its trade surplus of 1 trillion dollars for the first time in November. The main reason for this is that American manufacturers started exporting their products to the markets of Europe, Australia and South-East Asian countries instead of sending their products to America due to high import duties. At the same time, China’s exports to America have reduced to about one-third compared to a year ago.

China’s trade increased

According to Customs Department data released on Monday, China’s total exports in November increased by 5.9 percent on an annual basis. In the same month, China’s trade surplus increased to $111.68 billion, which is the highest since June and has also crossed October’s record of $90.7 billion. Due to this, China’s trade surplus went above 1 trillion dollars for the first time in the last 11 months.

According to Jichun Huang, China Economist of Capital Economics, despite the agreement between the US and China on tariffs, there was no significant improvement in China’s shipments to the US. Experts believe that China’s exports will remain similarly strong in the coming year also. After Trump’s election in 2024, China adopted a strategy to expand its exports to diverse markets, including increasing trade with Southeast Asia and the European Union.

How is China’s trade surplus?

This directly benefited Chinese companies, who strengthened their hold in global markets with low tariffs. At the same time, China’s exports to America decreased by 29 percent in November, while exports to European Union increased by 14.8 percent, to Australia by 35.8 percent and to South Asian countries by 8.2 percent.

This report has come at a time when after the meeting of President Trump and President Xi Jinping in South Korea on October 30, there were positive signals regarding the tariff agreement between the two countries.

Read this also: Chaos in the market before the US Fed’s decision – Rupee fell, is there a fear of further fall?

India Rice Stocks Fall: The second trading day of the week in the Indian stock market, Tuesday, December 9, has been very bad for Indian rice companies. Shares of rice companies have fallen by 10 percent in early trading. The reason behind this fall in rice stocks is the new statement of US President Donald Trump.

In which he has said that a new tariff can be imposed on the import of agri products. This statement had an impact on the shares of rice companies and they started trading in the red.

Condition of major rice companies in stock market

Shares of KRBL, LT Foods and GRM rice companies fell up to 10 percent on Tuesday’s trading day. Besides, there was a huge decline in the shares of Kohinoor Foods and the company shares slipped by 10 percent.

At the same time, a decline of 5 percent was recorded in the shares of Chaman Lal Setia Exports Limited. Overall, due to this statement of Trump, the shares of Indian rice companies turned red.

Trump’s statement

President Donald Trump, while talking to reporters at the White House on Monday, said that he can impose new tariffs on agri products. Regarding rice coming from India and fertilizer imported from Canada, he said that these imports are posing a challenge to American farmers.

American farmers are facing problems due to these cheap products. Trump said this after announcing a $12 billion package for American farmers. Giving further information, the President said that American farmers are troubled by the falling prices of rice. They will take care of dumping in America. Imported rice from countries like India, Thailand and Vietnam is affecting the prices of American farmers’ produce.

Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)

Read also: Gold Price Today: The shine of gold has faded, know how cheap the rate became from Delhi to Chennai on December 9.

US President Donald Trump has indicated that his administration may consider imposing new tariffs on foreign agricultural products, including Indian rice and Canadian fertilizers. Trump made this statement in a meeting held at the White House, where farmers complained about the impact on the American market due to cheap foreign products. This meeting was organized during the $12 billion relief package announced for American farmers.

American farmers troubled by foreign cheap rice
The farmers present in the meeting alleged that some countries are selling rice at low prices in the American market, causing huge losses to domestic farmers. On this Trump said, ‘They are cheating.’ He indicated that these allegations would be investigated and if necessary, tariffs would be imposed.

Merrill Kennedy, CEO of Louisiana’s Kennedy Rice Mill, claimed that India, Thailand and China are the main countries of this alleged dumping. He said that China is sending large quantities of rice, especially to Puerto Rico where the supply of American rice has almost stopped. Kennedy said, ‘We have not sent rice there for years. Farmers are badly affected in the southern states.

The tariffs are working, but…
Merrill Kennedy said at the meeting that the tariffs are proving effective, but they need to be more stringent. Trump expressed surprise at this and said, ‘You want more?’ But he agreed that if any country is dumping then action will be taken against it.

Trump instructed US Finance Minister Scott Besant, who was present at the meeting, to note down the list of countries mentioned by the farmers. When the farmers started giving information about the Indian subsidy policy, Trump interrupted and said, ‘First tell me the names of the countries… India, who else?’

Besant cited India, Thailand and China as the main sources and said that more countries may be included in the list, details of which will be given later. Trump assured that ‘action will be taken very soon’ on this matter.

Canadian fertilizers also on target
During the discussion, Trump indicated that heavy duty could also be imposed on fertilizers coming from Canada so that domestic production could be promoted. According to Bloomberg report, both India and Canada are trying to make trade deals with the US, but there has been little progress in these talks in recent months. In August, the Trump administration imposed 50 percent tariffs on Indian products, saying India had erected barriers to the US market and continued buying oil from Russia.

India-US trade talks on 10–11 December
A senior US delegation led by Rick Switzer, deputy head of the Office of the US Trade Representative (USTR), will resume trade talks with India this week. Both sides will discuss many important issues on 10 and 11 December and try to take forward the Bilateral Trade Agreement (BTA).

Commerce Secretary Rajesh Aggarwal will lead the talks from the Indian side. He said that India is trying to finalize the first phase of the agreement by the end of this year. Speaking at FICCI’s annual meeting on November 28, Aggarwal said, ‘I am confident that we will complete the agreement within this calendar year.’

Amidst America’s new tariff policy and changes in global trade equations, India has now started seeing Russia’s huge market as a new opportunity. The visit of Russian President Vladimir Putin to India has further strengthened these possibilities. The business world is believing that India-Russia trade can reach new heights in the coming times.

Amidst increasing trade uncertainty in America, India’s eyes are now fixed on Russia. Brijesh Goyal, Chairman of Chamber of Trade and Industry (CTI), the country’s leading business organization, told the ABP Live team that India currently exports about 5 billion dollars to Russia, but this figure is much less than Russia’s capacity. At the same time, China is maintaining a strong hold on the Russian market by exporting about 115 billion dollars.

Expectations increased due to Putin’s visit

Goyal believes that President Putin’s visit to India has given rise to new possibilities for trade between the two countries. He says that in the near future, India’s exports to Russia can increase to 10 billion dollars annually. Starting trade in local currency can also accelerate this growth.

From smartphones to medicines – still a big gap

India has become the world’s second largest smartphone manufacturer, yet India exports only $75 million worth of mobile phones to Russia. India has a strong hold in the field of medicines, yet medicines worth only $245 million are sent to Russia. Not only this, India’s export in textile sector is only 29 million dollars, which is considered very low compared to its potential.

Business can increase in many sectors

Brijesh Goyal said that there is huge potential for India in Russia in electronics, machinery, textiles, pharma and many other sectors. He also said that starting transactions in indigenous currency will make business easier and the penetration of Indian products in Russia can become stronger.

US tariff shock and Russia’s option

CTI believes that India’s exports to the US market have been affected after the Trump administration imposed 50% import duty on India. In such a situation, Russia can become a strong and reliable option, where there is a large consumer base for Indian goods.

New avenues will open in defense and maritime sectors also

India has been an important partner of Russia in the defense sector for a long time. Goyal said that while Russia provides defense equipment to India, there can also be a possibility of their production units in India in the future. On the other hand, Russia is showing increasing interest in importing Indian marine products, which will give further impetus to bilateral trade.

Also read: More than 900 Indigo flights cancelled, uproar at airports across the country, passengers stranded for 12 hours – ‘No water, no food’

Russian President Vladimir Putin is visiting India. He can sign many big agreements during his visit to India. Meanwhile, he has given a big statement regarding the tariff imposed by America on India. He said that Prime Minister Narendra Modi is not a leader who comes under pressure. He gave this statement in response to a question in which America was putting pressure on India through tariffs.

Putin praised PM Modi’s leadership abilities
Putin was also asked about US President Donald Trump, bilateral talks with Prime Minister Modi in Delhi and the future of India-Russia relations. During an interview with India Today, he praised the leadership of Prime Minister Modi and said that the world has seen India’s steadfast policy and the country should be proud of its leadership. Putin also said that more than 90 percent of bilateral transactions between India and Russia have been successfully completed.

Friendship with Modi and upcoming visit to India
Putin said he was very happy to travel to meet his friend, Prime Minister Modi. He also said that both the leaders have agreed to hold the next meeting in India.

India-Russia cooperation and historical relations
Putin said that there are many things to discuss, because the scope of cooperation between India and Russia is very wide. He also underlined the special historical relations between the two countries. Praising India’s progress since independence, he said that in a short span of just 77 years, the country has achieved amazing development.

Let us tell you that Putin has made nine visits to India so far, out of which three took place during Modi’s tenure (2016, 2018 and 2021). This will be his tenth visit in December. Prime Minister Modi has visited Russia seven times.

India’s GDP Growth: The Indian economy is growing at a fast pace and the International Monetary Fund (IMF) has estimated the GDP growth rate to be 6.6 percent for the financial year 2025-26. In its report, IMF has said that GST reforms are expected to help India counter the impact of 50 percent higher tariff imposed by the US.

The IMF issued the statement after its Board of Executive Directors completed its annual assessment of India. It was said that India’s economy is continuously performing better. After a growth rate of 6.5 percent in FY 2024-25, real GDP grew at 7.8 percent in the first quarter of FY 2025-26.

Ability to maintain economic growth

IMF says that India’s ambition to become a developed economy in the future can be strengthened by comprehensive structural reforms. This will pave the way for long-term high growth rates. IMF also said that despite external challenges, domestic conditions remain favorable, due to which economic growth is expected to remain strong.

According to the IMF, even if the US’s 50 percent tariff continues for a long time, real GDP growth could still be 6.6 percent in fiscal year 2025-26. However, it is expected to decline to 6.2 percent in the financial year 2026-27.

Positive impact of GST reforms

The IMF believes that the GST reforms and the resulting reduction in tariff rates will help mitigate the negative impact of US tariffs. The US has imposed a 50 percent tariff on India, which also includes a 25 percent duty on energy imports from Russia.

Future risks and opportunities

The IMF warned that there are many risks to the economic outlook in the near future.

positive side:

• Implementation of new trade agreements can boost exports, private investment and employment.
• Rapid implementation of structural reforms will provide additional support to the growth rate.

negative side:

• Financial conditions may become tighter as global economic disruption increases.
• Prices of raw materials may increase.
• There may be a negative impact on trade, foreign direct investment (FDI) and economic growth.

Also read: Ayodhya is becoming the hub of real estate, among the property markets giving highest returns with a growth of 300 to 500%.