US President Donald Trump has stated that India has offered to reduce its tariffs to zero, while describing the ongoing trade tensions as “a totally one-sided disaster.” This declaration follows the implementation of US tariffs that now impose a 50% duty on goods from India, including a 25% penalty for India’s continued purchase of oil from Russia.
India has not yet officially responded to Trump’s remarks; however, the verbal exchanges regarding Russian oil have adversely affected the relationship between Delhi and Washington, reaching what some observers note as a low point. Trump’s comments came during a period when Indian Prime Minister Narendra Modi was attending the Shanghai Cooperation Organisation (SCO) summit in Tianjin, where he engaged with both Chinese President Xi Jinping and Russian President Vladimir Putin.
The US has accused India of indirectly funding Russia’s military actions in Ukraine by purchasing oil and military equipment from Russia, with minimal transactions made with the US. Trump criticized India for not reducing tariffs sooner, emphasizing that India’s economic dealings are heavily skewed in its favor.
The Indian government has previously asserted the importance of Russian oil for satisfying its energy requirements. Officials have condemned the US tariffs as “unfair, unjustified, and unreasonable.” Piyush Goyal, India’s commerce minister, conveyed that India would not weaken its economic relationships with other nations and expressed openness to establishing free trade agreements.
Trump indicated a perceived imbalance in trade, noting that India conducts significant business with the US while American exports to India remain low. Historically, the US was India’s largest trading partner, and these tariffs have raised concerns regarding the potential impact on India’s exports and economic growth.
During the SCO summit, Modi was observed interacting with Putin and shared a photo depicting their meeting, which he described as “insightful.” The SCO, which includes members such as China, India, Iran, Pakistan, and Russia, is perceived as a counterbalance to US global influence.
Source: https://www.bbc.com/news/articles/cn0r014p828o?at_medium=RSS&at_campaign=rss