India will hit back against Trump’s tariff, rubbishes trade talks conclusion Dates
The US-India trade relations has taken a tumble with Donald Trump announcing that a 25% tariff would be imposed on Indian goods starting August 1. The statement, issued via Trump’s Truth Social platform, accused India of maintaining high tariff barriers and continuing its defense and energy ties with Russia-both of which Trump deemed unacceptable in light of US strategic interests.
Well Trump Bhai, your antics too are unacceptable to India. However New Delhi immediately responded through a measured but firm response. Ministry of Commerce of New Delhi vowed to protect its economic interests, particularly those of farmers, entrepreneurs, and small and medium-sized enterprises, while reaffirming its commitment to a fair and mutually beneficial trade agreement with Washington on basis of equality.
“India and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective,” the statement read.
India’s recently concluded free trade agreement with the United Kingdom is an example of its broader strategy, emphasizing that any trade deal-be it with the US or another global power will be on basis of equality and it will protect the unique needs of its domestic industries.
Trump’s transactional approach to diplomacy will just get brushed aside by Modi. “While India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high,” Trump wrote. He also lambasted India’s continued reliance on Russian military hardware and energy imports, stating that New Delhi is “Russia’s largest buyer of energy.”
This declaration comes even when India and the US had already engaged in prolonged negotiations for an interim trade agreement. A preliminary deal had been worked out between negotiators from both sides, oked by India while the American negotiators waiting for Trump’s approval. However, Trump reportedly deemed the terms insufficient, demanding a more comprehensive opening of India’s market to American exports….which has naturally been REJECTED.
Former Indian Foreign Secretary Kanwal Sibal weighed in on the situation, calling Trump’s strategy “pressure tactics.” In a media interview, Sibal said that Trump likely dismissed the interim pact because it didn’t grant enough access to the Indian market.
“An interim deal was reached by the negotiators on both sides, and it appears it was presented to Trump. And Trump took a position that it was not enough, that most of the Indian market has to be open.”
Trump’s history of leveraging tariffs as a tool to extract trade concessions as he didn’t give the EU or Japan an easy deal either, will just not work with Shri Piyush Goyal.
Despite Trump’s assertion that the US does “little” business with India, the economic data paints a very different picture. The United States is, in fact, India’s largest trading partner, with bilateral trade exceeding INR 1122, 000Crores ( USD 132 billion )in the last financial year alone. This includes a wide range of goods and services, from information technology and pharmaceuticals to agricultural products and defence equipment.
India’s energy purchases from Russia have come under increasing scrutiny from Washington since the outbreak of the Ukraine conflict. However, Indian policymakers have maintained that their energy security cannot be dictated by geopolitical considerations by any power not even the USA. “Our foreign policy is guided by our national interest,” Indian officials have consistently repeating.
India’s defence procurement from Russia is also rooted in historical friendship and long-standing logistical frameworks. While New Delhi has gradually increased manufacturing and buying of indigenous military equipment, around 30% is still bought from others. Majority of imports is still from Russia, though now it is carrying out military acquisitions-buying even from the US and of course continues from France, and Israel.
What makes Trump’s latest tariff a NO GO discussion because for India National Interest is of paramount importance. Indian Prime Minister Narendra Modi’s government is fully aware that “Trumps invasive demands “ will badly affect the small businesses and farmers and hence unacceptable.
The Ministry of Commerce’s response reflects this concern, as it reiterates that no agreement with the US will be signed unless the interests of these key constituencies are preserved. “India will take all steps necessary to protect its farmers, small and medium enterprises, and other stakeholders,” the statement said.
Also no one gives a deadline to Govt of India ….seems Trump bhai does not know this. So no wonder the August 1 deadline has passed but wisely both sides have left the door open for further negotiations. Trade talks are likely to continue beyond the missed deadline, albeit in a more strained atmosphere.
Some analysts argue that Trump’s announcement was as much about political posturing as it was about trade policy-especially considering the upcoming US presidential election, where Trump is campaigning on a platform of economic nationalism.
However Trump can play with Xi Jinping but not Modi. Reduction of imports from India will hurt common Americans very badly. The USA medical care system may go into a major tail spin.
For now, New Delhi appears to be signalling readiness to negotiate while refusing to be bullied. Trump’s tariff gambit in forcing India to offer more concessions will not succeed. One thing is clear-India is not backing down.
Another major mistake Trump has committed — a real Hara -kiri, is that he has tried to equate Pakistan once again with India. We’ll he should not be surprised if USA gets equated with Iran and North Korea.
As global trade dynamics shift and geopolitical alliances are redefined, India’s resolve to protect its domestic sectors while maintaining strategic independence could very well shape the trajectory of its relationship with not just the US, but the broader Western world.
Source : Blitz
