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US President Trump has made some important moves over past few days with trade policies, political and economic changes.
Trump has made several moves such as engaging trade talks with India, pushing for EU sanctions on Russia, making changes to the Fed board and facing a Supreme Court challenge on tariffs. These moves are aimed to balance trade, influence economic policy, and push for an end to the war in Ukraine.
Optimism in US-India Trade Negotiations
President Trump and Indian Prime Minister Modi have displayed positive sentiment for a trade deal on Tuesday after tensions over tariffs caused India to buy oil from Russia.
Modi said talks would open the door to more opportunities for both the US and India. Trump posted on Truth Social that negotiations continue and expects quick success as he looks forward to speaking with PM Modi soon. ⁽¹⁾
Trade tensions between the two nations were on the rise, where the US imposed an additional 25% tariff rate on Indian imports in August, reaching a tariff rate of 50% due to purchases of oil from Russia. ⁽²⁾
This led to some sour relations between New Delhi and Washington and was compounded by Modi sharing a stage with Chinese President Xi Jinping and Russian President Vladimir Putin at the Shanghai Cooperation Organization summit in China.
Trump Asks for EU Tariffs on India and China
Despite optimism on US-India trade talks, Trump has asked the European Union to impose 100% tariffs on India and China for buying oil from Russia. The objective here was to put pressure on Russia to end the war in Ukraine as Trump raised this issue during the meeting with US and EU officials. ⁽³⁾
Trump’s proposal comes as his meeting with Russian President Vladimir Putin in Alaska last month has shown little progress toward securing a ceasefire in Ukraine. After the meeting, Putin told reporters in a joint press conference with Trump that the “root causes” of the conflict needed to be addressed for sustainable peace.
Senate Advances Miran for Fed Governor
The Senate Banking Committee voted 13-11 to advance Trump’s nomination of Stephen Miran as Fed governor. Miran is an economic advisor for the White House and will replace former Fed governor Adriana Kugler, who resigned in August with no reason. ⁽⁴⁾
All the Republicans have voted to nominate him while Democrats rejected. Miran plans an unpaid leave from his current role, which the Democrats oppose. Trump said he will seek a full-term replacement later. This vote was made a week before the FOMC meeting where the Fed is expected to cut rates, as Trump has long demanded. ⁽⁵⁾
Trump Appeals Block Him from Firing Fed Governor Lisa Cook
Trump appealed a judge order which blocks him from firing Fed governor Lisa Cook. The ruling came on Tuesday from US District Court Judge Jia Cobb, who said Fed independence favors reinstatement.
Trump announced on August 25th that he was firing Cook, who is the first black woman to serve as a Fed governor. He also claimed he was doing so because of allegations by Federal Housing Finance Agency Director Bill Pulte that she committed mortgage fraud.
If Cook is ultimately removed from the Fed, Trump would be on track to nominate a majority of the central bank’s board. ⁽⁶⁾
Supreme Court Fast-Tracks Tariff Appeal
On Tuesday, the Supreme Court granted the Trump administration’s request to hear its appeal of lower court rulings that many of President Donald Trump’s wide-ranging tariffs are illegal. The Supreme Court also agreed with the administration’s request to consider the appeal on a faster-than-normal timeline.
At risk are “reciprocal tariffs” of 10-50% on countries like Brazil and India, plus 25% on Canada, China, and Mexico to curb fentanyl. The Federal Circuit ruled 7-4 in August that Trump overstepped Congress. The Treasury warns of $750 billion to $1 trillion in refunds if lost. ⁽⁷⁾
