WASHINGTON: US President Donald Trump has said there will be no trade negotiations with India until a dispute over tariffs is resolved, following his administration's decision to double tariffs on Indian imports.
When pressed by ANI at the Oval Office,whether he expected talks to resume in light of the new 50% tariff."No, not until we get it resolved," he replied.
The White House on Wednesday issued an Executive Order imposing an additional 25 percentage points in tariffs on Indian goods, raising the total levy to 50%. The administration cited national security and foreign policy concerns, pointing specifically to India's ongoing imports of Russian oil.
The order claims that these imports, whether direct or via intermediaries, present an "unusual and extraordinary threat" to the United States and justify emergency economic measures.
According to US officials, the initial 25% tariff came into effect on 7 August. The additional levy will take effect in 21 days and apply to all Indian goods entering US ports -- with exceptions for items already in transit and certain exempt categories. The order also provides flexibility for the president to modify the measures, depending on changing geopolitical circumstances or retaliatory actions by India or other nations.
India's Prime Minister Narendra Modi responded defiantly during a speech at the MS Swaminathan Centenary International Conference in New Delhi, signalling that New Delhi would not back down in the face of economic pressure.
"For us, the interest of our farmers is our top priority," PM Modi said. "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."
India has consistently pushed back against opening sensitive sectors such as agriculture and dairy to international competition, citing the potential impact on millions of rural livelihoods.
The standoff marks a sharp escalation in trade tensions between the two countries, as both sides dig in over economic policy and matters of national interest.