Tensions flared between India and United States over trade tariffs sparked by US President Donald Trump’s accusations. He claimed India benefits significantly from American trade support without offering fair reciprocation.
Trump warned of imposing hefty tariffs on Indian goods due to India’s purchase of Russian oil, alleging New Delhi buys cheap oil from Moscow and sells it at higher prices indirectly aiding Russia’s war efforts in Ukraine.
Last month, Trump set a 25% tariff on Indian imports. Now, he plans to escalate tariffs further, citing India’s high tariff rates as unfair. During a CNBC interview, he labeled India the “biggest tariff offender,” stating minimal trade occurs due to these barriers.
At a White House press conference Trump hinted at tougher sanctions on countries buying Russian oil, with decisions pending after a scheduled meeting with Russia. He emphasized stricter measures if no progress halts the Ukraine conflict by Friday.
Russia backed India amid this dispute. Kremlin spokesperson Dmitry Peskov defended India’s sovereign right to choose trade partners calling Trump’s pressure tactics illegitimate. Moscow expressed eagerness to deepen ties with India highlighted by National Security Advisor Ajit Doval’s visit to discuss trade and other issues.
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US threats impacted India’s markets with the Sensex dropping 0.38% and the rupee weakening 0.17% against the dollar. Indian economists fear Trump’s proposed tariffs could severely hit the export sector.
