India takes the U.S. to task over tariffs

Summary

Marketplace Morning Report Summary

Episode Title: India Takes the U.S. to Task Over Tariffs
Release Date: June 5, 2025
Host: Liana Byrne (Marketplace Morning Report, BBC World Service)

India Challenges U.S. Tariffs at the World Trade Organization

In this episode, host Liana Byrne highlights a significant development in international trade as India formally challenges the United States' extensive tariffs on automobiles at the World Trade Organization (WTO). This action comes amidst ongoing trade negotiations between the two nations, with India seeking to secure a waiver or preferential tariff treatment for its auto components—a crucial sector contributing to last year's $2.8 billion in Indian auto exports to the U.S.

Archana Shukla, reporting from Mumbai, explains India's position:

“Auto components are a big segment of exports for the Indian component makers who supply to the US Companies...”
[01:29]

Shukla further elaborates that this is not India's first foray into WTO disputes, referencing a similar challenge related to aluminum and steel tariffs initiated the previous month. The move is seen as a strategic pressure point in the negotiation process, especially as both countries aim to finalize agreements before President Trump's 90-day pause on new tariffs concludes in July.

When questioned about the rationale behind involving the WTO during active negotiations, Shukla responds:

“Initially when the Trump tariffs came into picture, India had signalled that it won't take a tit for tat approach on tariffs. But since last month we've seen a hardening of stance...”
[02:19]

Despite the potential for prolonged dispute resolution within the WTO—exacerbated by a shortage of appellate board judges due to U.S. blockages—India remains committed to restoring the organization's dispute settlement mechanisms:

“We've written and we are asking all the bodies and all the member countries to contribute in trying to bring WTO back to its powers.”
[02:50]

European Market Movements and Corporate Shifts

Shifting focus to European financial markets, Byrne reports an uptick in stock indices as investors anticipate a possible interest rate cut from the European Central Bank (ECB). Significant corporate news includes:

• Wise, a fintech company, saw its shares soar by 10% following its announcement to relocate its stock listing from the UK to the U.S., signaling challenges for London's financial exchanges.
• Dr. Martens, the iconic shoemaker, experienced an 18% surge in its stock price after pledging to reduce U.S. discounting and projecting a return to profit growth.

Baltic Nations Intensify Efforts Against Russia's Shadow Fleet

The report delves into the Baltic states' intensified efforts to curb Russia's shadow fleet oil tankers, which are designed to circumvent Western sanctions and support Russia's ongoing conflict in Ukraine. Frank Gardner from the BBC outlines the geopolitical tensions:

“Government officials in Estonia say they are increasingly concerned at how to choke off this trade which is helping to fuel Russia's war in Ukraine.”
[04:15]

Following incidents where Russian military aircraft interfered with attempts to detain sanctioned tankers, Estonia, Lithuania, and Latvia are developing new protocols to effectively block and detain these vessels, despite the looming threat of increased Russian military escorts.

Cuban Students Protest Over Skyrocketing Internet Fees

In Cuba, Leonardo Russia reports escalating tensions among university students protesting against significant hikes in mobile internet fees. The state telecom company, Etexa, has implemented a more than tenfold increase in tariffs for data usage exceeding monthly limits, forcing students to purchase expensive top-up packages in U.S. dollars—costing half of the island nation's average monthly salary.

“The students union said the new prices would be too expensive for most Cubans.”
[05:07]

In response, the students union has called for a total boycott of classes, pressing the government to address the financial strain imposed by these new internet charges. President Miguel d'Escanel has indicated that he is exploring options to support the most vulnerable students affected by these changes.

Nintendo Switch Launch Amidst Tariff Challenges

The global release of the Nintendo Switch has generated significant consumer excitement, with long queues forming on London's Oxford Street as fans eagerly await the new console. Nintendo enthusiasts express their enthusiasm:

“It's such a big name behind it. Everyone loves Nintendo... Even your nan's going to say, yeah, go on, let's play Mario Kart.”
[06:05]

However, the launch has faced challenges due to U.S. tariff issues. Keza McDonald, author of the forthcoming book Super Nintendo, discusses the impact:

“The launch strategy for the Switch had to completely change because of American tariff situations... Games in general are costing more.”
[06:31]

Despite these hurdles, McDonald remains optimistic about supply chains, anticipating that ample console production will ensure availability in the coming months.

Deliveroo Trials Drone Delivery Service in Dublin

Concluding the report, Byrne covers Deliveroo's latest innovation in logistics. Following its $4 billion acquisition by DoorDash, Deliveroo is experimenting with drone delivery services in Dublin, Ireland. This trial represents a significant step forward in autonomous delivery technologies, aiming to enhance delivery efficiency and reduce operational costs.

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This summary encapsulates the key discussions and insights from the episode, providing a comprehensive overview for those who haven't listened. Notable quotes are included with proper attribution and timestamps to highlight essential points.

Transcript

[Host]

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[Liana Byrne]

India takes the US to task over Tariffs hello, this is the Marketplace Morning Report and we're live from the BBC World Service. I'm Liana Byrne. Good morning. So India has formally taken the US to the World Trade Organization, challenging Washington's sweeping global tariffs on cars. Last year, India's auto exports to the US came to $2.8 billion. The move adds tension to the ongoing trade talks between the two countries as they race to strike a deal before President Trump's 90 day pause on new tariffs runs out in July. The BBC's Archana Shukla is following this from Mumbai. Archana, what is India hoping to get out of this?

[Archana Shukla]

Largely a waiver or a preferential treatment when it comes to tariffs on auto Auto components are a big segment of exports for the Indian component makers who supply to the US Companies and they have taken the US to the WTO asking for a consultation. Now this is not the first time India has done this. Last month they wrote a similar letter to the WTO asking consultation with the United States on tariffs that related to aluminium and steel. These challenges taken to the WTO can put some pressure on the trade negotiations that India and the United States are having right now trying to close it before the end of this month.

[Liana Byrne]

Yeah, it is a funny thing to put this through when there is ongoing trade negotiations between India and the US So you think it's to put the pressure on?

[Archana Shukla]

Initially when the Trump tariffs came into picture, India had signalled that it won't take a tit for tat approach on tariffs. But since last month we've seen a hardening of stance and in in the last case on the aluminium and metal tariffs when US has refused a consultation, India has threatened that they would go ahead and impose retaliatory tariffs on some other US Imports into India.

[Liana Byrne]

But how effective is this part of its stance going to be because WTO trade disputes take a long time to resolve.

[Archana Shukla]

Well, it does, partly because dispute settlements have somewhere been paralyzed because of the lack of adequate number of judges on the appellate board. And the reason behind that is over the past few years, few years, US has blocked those appointments. And India, in fact, on its part has been wanting to bring that dispute settlement back, to bring that power to the WTO back. And in fact, just a day ago, India's trade minister made a statement that we've written and we are asking all the bodies and all the member countries to contribute and in trying to bring WTO back to its powers.

[Liana Byrne]

Okay. The BBC's Archa Nashukla, thank you so much for joining us in marketplace.

[Archana Shukla]

Thank you, Liana.

[Liana Byrne]

Now let's do the numbers. European markets are up as investors await an expected interest rate cut from the ECB. Later today, shares in the fintech company Wise jumped 10% on plans to move its listing from the UK to the US another blow for London's stock exchange. Meanwhile, the shoemaker Dr. Martin surged 18% after pledging to scale back US discounting and forecasting a return to profit growth. Now Estonia says it's teaming up with Lithuania and Latvia to crack down on Russia's so called shadow fleet oil tankers used to dodge Western sanctions and fund its war in Ukraine. The Baltic nations say they're exploring new ways to block the ships from passing through their waters. Here's the BBC's Frank Gardner.

[Frank Gardner]

Government officials in Estonia say they are increasingly concerned at how to choke off this trade which is helping to fuel Russia's war in Ukraine. Last month, the UK government sanctioned up to 100 tankers belonging to Russia's so called shadow fleet. But in the same month when the Estonian coast guard tried to detain one of those sanctioned tankers, it found itself being buzzed by a Russian warplane which then flew for up to a minute through NATO airspace. The Baltic states are now working on new protocols for how to detain suspect tankers amid concerns more of them may soon be given a Russian military escort.

[Liana Byrne]

Frank Gardiner reporting. Meanwhile, students at the University of Havana are boycotting classes over a sharp hike in mobile Internet fees. They're also protesting a new requirement to pay top ups in US dollars, something many say they simply cannot afford. The BBC's Leonardo Russia reports.

[Leonardo Russia]

In a rap protest against Cuba's communist government, the students union called for a total boycott of classes until the situation is addressed. The state telecom company Etexa has announced last week that tariffs would increase more than tenfold for those who exceed their monthly data limit. The students union said the new prices would be too expensive for most Cubans. The top up package for those using more than 6GB of data per month now costs $25, which is half of Cuba's average monthly salary. President Miguel d' Escanel said he was looking into options for the most vulnerable students.

[Liana Byrne]

Leonardo, Russia There now the Nintendo Switch has launched worldwide, fans queuing at midnight to snap up the long awaited console. And the BBC caught up with some shoppers in London's Oxford Street. It's just an exciting moment. I mean, it's the first time Nintendo's released anything and I think seven years, honestly, it just feels like something historic because who knows when we'll get another one.

[Nintendo Fan]

I've had every console since the very first one that I got when I was 8 years old. Having a new console, it's really exciting. It's such a big name behind it. Everyone loves Nintendo. I don't know a single person that you go, I've got Mario Kart. Do you want to play? They're not. No one's going to go, no. Even your nan's going to say, yeah, go on, let's play Mario Kart.

[Liana Byrne]

But the launch hasn't been without challenges. Keza McDonald, author of the upcoming book Super Nintendo, says tariffs had had an impact.

[Keza McDonald]

It has certainly had an impact already. The launch strategy for the Switch had to completely change because of American tariff situations. The pricing wasn't announced until very late in the day. We've also seen the PlayStation 5 have to raise prices. Games in general are costing more. It is definitely having an effect, but in terms of the supply ch, I think there's going to be a lot of consoles in production, so people should be able to get their hands on one in the next few months.

[Liana Byrne]

That was Gaming author Kaza MacDonald. And finally, food delivery group Deliveroo, which last month agreed to a $4 billion takeover by DoorDash, is trialing a drone delivery service in my hometown Dublin in Ireland. Better go home and place my order. I'm Liana Byrne with a Marketplace morning report from the BBC World Service.

[Host]

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