Not until its resolved: Trump pauses India-US trade talks amid tariff row
US President Donald Trump on Wednesday imposed additional 25 per cent additional tariff on Indian goods which he said was a penalty for New Delhi's continued purchase of Russian oil.
New Delhi: The tariff dispute between the US and India has cast a shadow over the trade deal talks between the two countries with the US President Donald Trump ruling out possibility of any such negotiation with New Delhi until the issue of tariffs is resolved. Trump on Wednesday imposed additional 25 per cent additional tariff on Indian goods which he said was a penalty for New Delhi's continued purchase of Russian oil. The fresh penalty raised the total tariff imposed on Indian imports to 50 per cent -- the highest levy imposed against any country, along with Brazil.
Asked by news agency ANI, at the Oval Office that if the US and India will resume trade talks amid the tariff dispute, he responded, "No, not until we get it resolved."
India-US tariff dispute halts trade talks
The tariff dispute between India and the US began last week even as the bilateral trade talks between the two countries continued. The Trump administration initially imposed a 25 per cent tariff on Indian exports to the US and later slapped extra 25 per cent, taking the total levy on New Delhi to 50 per cent. The US cited India's continued import of Russian oil as one of reasons for the stringent tariff measure against the country.
India and the US held five rounds of talks to negotiate a trade deal but they failed to come to an agreement over opening New Delhi's sensitive sectors such as agriculture and dairy. While the US is pushing for greater Indian market access for its agricultural and dairy products, New Delhi has been reluctant to open sensitive sectors to international competition, citing a possible threat to rural livelihood. The impasse marks a sharp escalation in trade tensions between the two countries. The tariff dispute has also adversely impacted the trade negotiations between the two world powers.
India's strong message to US over tariff row
India called out the Trump administration's decision, describing it "unfair, unjustified and unreasonable." The foreign ministry said that the US decision is detrimental to their strategic partnership and mutual respect principles, underlining that India is committed to protecting its national interests
Prime Minister Narendra Modi on Thursday sent out a subtle message to the US during a speech at the MS Swaminathan Centenary International Conference in New Delhi, indicating that New Delhi would not give in to economic pressure. "For us, the interest of our farmers is our top priority. India will never compromise on the interests of farmers, fishermen and dairy farmers. I know we will have to pay a heavy price for it, and I am ready for it. India is ready for it," PM Modi said.