'Modi and India unfazed'
... despite Trump-Tariffs fueling fears of higher inflation in India
apprehensions of 'precipitous fall' in trade between the two countries.
I think we'll come together with India, says Trump aide as 50% tariffs kick in
As US President Donald Trump's 50 per cent tariffs on Indian goods came into effect on Wednesday, US Treasury Secretary Scott Bessent spoke about the bilateral ties, saying they were "complicated", but expressed confidence that the two countries would come together "at the end of the day".
Donald Trump imposed 50% tariffs on most US imports from India, making good on a threat to punish one of the world’s largest economies over its purchases of discounted Russian oil.
The tariffs, which came into effect August 27th risk inflicting significant damage on the Indian economy and further disrupting global supply chains.
US tariffs of 25% on Indian goods went into force earlier this month, but Trump announced plans to double the rate, citing New Delhi’s purchases of Russian oil, which the White House has argued is indirectly funding Russia’s war against Ukraine.
The US president has significantly increased US tariffs on goods from much of the world since reentering the White House in January, straining relations with economies of allies and rivals and fueling fears of higher inflation.
This latest move leaves Indian exporters facing among the highest US duties Trump has slapped on goods from overseas. Brazil is also grappling with 50% tariffs on its exports to the US.
Ministers in India argue it has been unjustly singled out for its trade relationship with Russia and officials caution the country will likely work more closely with Moscow and Beijing – and drift further from Washington – as a result.
Most Indian goods exports to the US (worth $87.3bn to the US last year, according to the US trade representative) now face steep duties, although some key products including smartphones are set to be spared, for now.
The action, confirmed in a notice by the US Homeland Security Department prompted some economists to predict a precipitous fall in trade between the two countries.
Prime Minister Modi certainly faces a choice between high tariffs or giving up cheap oil. He has remained unfazed and defiant putting New Delhi’s equi distance in international polity in test.
India was never on sidelines .... India was with "Indian interests" and will remain so !! New Delhi has also time and again pointed out towards the US double standards.
It did not go "unnoticed" by the people and the government of India that China – the other big buyer of sanctioned Russian oil, which also has leverage over the US in the form of rare earths – has not received similar threats.
Even Turkey was left untouched by Trump.
It may be noted that India had come to view the US as one of its strongest and most reliable partners, united by the bonhomie between its leaders and growing cooperation on everything from regional security and defence to bilateral trade, intelligence, technology and an increasingly powerful Indian diaspora in the US.
A united geopolitical ambition to counterbalance the power of China had only brought them further together since 1998 under multiple Indian PMs and US presidents.
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