Trump says US, India 'still negotiating' after imposing 25% tariffs
What's the story
United States President Donald Trump has said the US is still negotiating with India on trade after earlier announcing that the US would impose a 25% tariff on goods imported from India, effective from August 1. Speaking to reporters, Trump said, "They have one of the highest tariffs in the world now, they're willing to cut it very substantially." "We're talking to India now - we'll see what happens ... You'll know by the end of this week."
Trump
Tariff undermines strategic partner of Washington's
The 25% tariff would target India more harshly than other significant trading partners, jeopardizing months of negotiations between the two nations and damaging Washington's key ally and counterbalance to China. While he called India a "friend," he said the US and India have done little business "because their Tariffs are far too high...and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country."
Accusations
Trump accuses India of buying military equipment from Russia
The tariff comes with an extra penalty for India's strategic trade with Russia. He said the US had a "massive" trade deficit with India and linked its military equipment purchases and energy imports from Russia to Vladimir Putin's war in Ukraine. "Also, they have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of energy, along with China, at a time when everyone wants Russia to stop the killing in Ukraine," he added.
Official response
India's Ministry of Commerce and Industry respond
In response to Trump's announcement, India's Ministry of Commerce and Industry said it is studying the implications of the move. "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 ministry said in the statement on Wednesday evening.
National interest
Centre highlights need to protect farmers, MSMEs
The ministry also highlighted its focus on protecting farmers, entrepreneurs, and MSMEs (Micro, Small and Medium Enterprises). It cited the recent Comprehensive Economic and Trade Agreement with the United Kingdom as an example of its commitment to national interests. The government said it will take all necessary steps to secure India's national interest in this matter.