When friend turns foe: Trump halts trade talks with India, imposes 50% tariff over Russian oil ties
PTC Web Desk: US President Donald Trump has officially halted all future trade negotiations with India following the imposition of a steep 50% tariff on Indian imports, marking a historic low in bilateral trade ties over the past two decades.
Responding to questions in the Oval Office, Donald Trump said, “Not until we get it resolved,” when asked about the possibility of resuming talks. His comments come amid growing criticism of India's continued oil trade with Russia, despite the threat of new "secondary sanctions" aimed at countries supporting Moscow economically.
On Wednesday, Donald Trump signed an executive order imposing an additional 25% duty on Indian goods, adding to an earlier 25% tariff, thereby escalating the total import tax to 50%. The revised duties are set to take effect on August 27.
In a sharp response, India condemned the increased tariffs, labelling them "unfair, unjustified and unreasonable." The Ministry of External Affairs reiterated that India's energy decisions are made with its population's security and economic interests in mind.
“Our import decisions are based on market dynamics and are crucial to ensuring the energy security of 1.4 billion citizens,” said a statement from the MEA.
Prime Minister Narendra Modi addressed the issue during his speech at the MS Swaminathan Centenary International Conference, affirming that India's priorities lie with its farmers, fishermen, and dairy workers, even if the country has to bear economic consequences.
"For us, the interest of our farmers is non-negotiable," Modi stated. "Even if I personally have to pay a heavy price, I am ready. India is prepared to face any consequence," he added.
India accuses US of double standards
India has also highlighted what it perceives as hypocrisy in Washington's policies. While India, China, and Turkey remain the top three importers of Russian oil, only India has been penalised. Notably, the US has suspended its 145% tariffs on Chinese imports under a temporary truce aimed at keeping negotiations open — a deal expiring on August 12.
Indian officials argue that singling out India while letting other nations continue their energy ties with Russia undermines the fairness and credibility of US trade policies.
- With inputs from agencies
