'Not until...': Trump rules out trade talks with India
What's the story
United States President Donald Trump has ruled out any trade negotiations with India until the ongoing tariff dispute is resolved. The decision comes after his administration's move to double tariffs on Indian imports. When asked by ANI reporters at the Oval Office if he expected talks to resume in light of the new 50% tariff, Trump said, "No, not until we get it resolved."
Tariff increase
US imposes additional tariffs on Indian imports
Trump on Wednesday signed an executive order that imposes an additional 25% tariff on Indian goods over New Delhi's continued purchase of Russian oil. This raises the total levy to 50%. The order states these imports pose an "unusual and extraordinary threat" to the United States, warranting emergency economic measures. The order also allows the president to adjust these measures based on changing geopolitical conditions or retaliatory actions by India or other countries.
Tariff timeline
Initial tariff hike was imposed on August 7
The initial 25% tariff came into effect on August 7. The additional 25% levy will be implemented in 21 days. It will apply to all Indian goods entering US ports, except for items already in transit and certain exempt categories. The announcement places India among the most heavily taxed US trading partners, above China, Vietnam, and Bangladesh. Sectors such as apparel, auto components, leather goods, among others, are expected to be the worst-hit.
Economic pressure
PM Modi's response to US decision
India's Prime Minister Narendra Modi has responded defiantly to the US decision. Speaking at the MS Swaminathan Centenary International Conference in New Delhi, he said India would not compromise on its farmers' interests. "For us, the interest of our farmers is our top priority," PM Modi said. He added that India is ready to pay a heavy price for its stance against opening sensitive sectors like agriculture and dairy to international competition.
Fallout
China, Russia issue support
The fallout has extended beyond India and the US. Russia and China have criticized Trump's move. Chinese Foreign Minister Wang Yi called Trump's move a violation of international law. Moscow also expressed strong support for New Delhi. The message was emphasized by Indian National Security Adviser Ajit Doval's trip to Moscow, where he met Vladimir Putin. Following the meeting, Doval said, "We have now established very good relations, which we value very much, a strategic partnership between our countries."