Former US President Donald Trump has made headlines by asserting that India has offered to cut its import tariffs on US goods 'to nothing.' This statement came in the wake of his criticism of the ongoing trade relations with India, which he described as 'a totally one-sided disaster.'
Last week, the US implemented an unexpected 50% tariff on goods imported from India, which includes a 25% penalty due to India's continued oil purchases from Russia. These trade measures have heightened tensions between the countries, drawing public responses from both governments.
Despite Trump's comments, the Indian government has not officially responded to his assertion of a proposal to eliminate tariffs. Nevertheless, bilateral relations have been strained, particularly given Delhi's steadfast stance on buying Russian oil, which Washington claims indirectly funds Russia's military operations in Ukraine.
Trump's remarks coincide with Prime Minister Narendra Modi's attendance at the Shanghai Cooperation Organisation (SCO) summit, where he held discussions with world leaders, including Chinese President Xi Jinping and Russian President Vladimir Putin. The summit is viewed as a platform for nations looking to counterbalance US dominance in global affairs.
In his commentary, Trump claimed, 'India buys most of its oil and military products from Russia, very little from the US,' urging India to have revised their tariff policies 'years ago.' He emphasized the importance of a balanced trade relationship, arguing that India primarily benefits from export activities towards the US.
Indian officials have expressed dissatisfaction with the tariffs, describing them as 'unfair, unjustified, and unreasonable.' Commerce Minister Piyush Goyal reiterated India’s commitment to economic independence, stating that India would not appear weak in its negotiations and was open to free trade agreements with other nations.
The relationship between India and the US has evolved considerably over the years, with recent tensions concerning tariffs prompting fears of potential adverse effects on India's economic growth and export capacity.
As Modi continues to engage with other world leaders at the SCO summit, the dynamics of India's foreign relations remain in focus, particularly its strategic needs and partnerships amid the current geopolitical climate.