US-India trade face-off: Trump signals tougher stance, New Delhi delivers sharp response
In a fresh attack on India, Donald Trump again threatened on Monday, August 4, to raise tariffs on goods from India over its Russian oil purchases. He also accused India of not just buying the Russian oil but also selling it.
In a post on Truth Social, Donald Trump wrote, 'India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits. They don't care how many people in Ukraine are being killed by the Russian War Machine.'
'Because of this, I will be substantially raising the Tariff paid by India to the USA. Thank you for your attention to this matter!!!' Also Read | Top five roadblocks that may arise after Trump's tariffs on India
New Delhi hit back almost immediately. Calling his attack 'unjustified and unreasonable', India vowed to protect its economic interests, deepening the trade rift between the two countries.
Firmly rejecting the criticism, India pointed out the double standards in targeting it on the issue and said both the US and the EU are continuing their trade relations with Russia.
'Unlike our case, such trade is not even a vital national compulsion,' the Ministry of External Affairs (MEA) said in a late-evening statement. The Europe-Russia trade includes not just energy, but also fertilizers, mining products, chemicals, iron and steel, and machinery and transport equipment, the MEA said.
'Where the US is concerned, it continues to import from Russia uranium hexafluoride for its nuclear industry, palladium for its EV industry, fertilizers as well as chemicals. In this background, the targeting of India is unjustified and unreasonable. Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,' it said.
New Delhi had said earlier that it is studying the implications of these tariffs and is still hopeful of concluding a fair, balanced and mutually beneficial trade agreement.
So far five rounds of negotiations have been held between the two countries. For the next round of talks, the US team is coming to India on August 25. The talks will go on till August 29.
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