This refers to ‘Not so beautiful’ (May 27). In his pursuit of making America great again, President Trump’s decision to impose a 3.5 per cent excise tax on all outward remittances appears to target the wrong issue. While his approach to imposing reciprocal tariffs on trade partners has seen limited success marked by policy reversals and inconsistencies, this latest proposal only adds to the uncertainty. His previous tariff measures provoked retaliation from major trade partners like China and Japan, including the offloading of US Treasury securities. The proposed excise tax on remittances could push legitimate remitters towards informal or illegal channels, such as the hawala system, particularly prevalent in Gulf countries. This move risks bolstering the already-thriving underground remittance market, undermining financial transparency and regulatory oversight.
Srinivasan Velamur
Chennai
Remittances could be hit
It may be a Big and Beautiful Bill for the Trump administration but it could turn out to be ugly for the Indian diaspora living in the US. It will hit H-1B visa and green card holders as it will put additional financial burden on them on the money they send to India. A depreciated rupee will make up for this loss due to 3.5 per cent tax but nevertheless we should not forget that almost 30 per cent of our total remittance comes from the US. Moreover, remittances are a crucial source of foreign exchange for India and reduction in this source from the US could impact India’s dollar reserve and balance of payment. So while we are negotiating a bilateral trade deal with the US, it would be better to address this remittance tax as well.
Bal Govind
Noida
Pressure on Harvard
This refers to ‘Trump planning to give $3 b Harvard grants to trade schools’ (May 27). President Donald Trump’s attempts to make an example of Harvard and make higher educational institutions fall in line with his political agenda continues, with his declaration of an intent to redirect federal grants of about $3 billion awarded to Harvard to “trade schools across the US”. His earlier actions barring enrolment of international students and freezing of funding have been challenged by Harvard in court and the government action blocked by a federal judge. Harvard should be appreciated for standing up to the mighty power of the State and fighting to defend and protect its academic independence and egalitarian policies.
Kosaraju Chandramouli
Hyderabad
Overtaking Japan
Many Indian hearts would be overflowing with pride as India displaces Japan as the 4th largest economy in the world. But does it make any difference to the vast majority of the Indian people struggling to survive. Those who have visited Japan can tell of the huge gap between Japan and India in terms of the quality of life. Just on the day India overtook Japan in GDP terms, the condition of the cities and the water logging problems in India due to heavy rains were an eye-opener to those who believe that India was now now a better nation than Japan in all respects.
Anthony Henriques
Mumbai
Published on May 27, 2025
