US President Donald Trump has acknowledged that the imposition of tariffs has negatively impacted relations between India and the United States. He stated on Friday that the 50 percent tariff imposed on India for purchasing oil from Russia has created bitterness between the two nations.
Washington: US President Donald Trump recently admitted that the 50% tariff imposed on India is negatively affecting the relations between the two countries. In an interview with Fox News, Trump said that this decision was not easy, but it was necessary to impose this significant duty on India due to its oil purchases from Russia. He acknowledged that this move has increased animosity between India and the US and has impacted trade cooperation.
Reason for Imposing Tariffs
Trump explicitly stated that India is heavily purchasing oil from Russia, which goes against America's strategic interests. This is why he implemented a 50% tariff on India. Previously, a 25% duty was imposed on India, which has now been increased to 50%. This tariff became effective from August 27. Trump said, "India is Russia's biggest customer. I have imposed a 50 percent tariff on India due to its oil purchases from Russia. This was not easy to do."
According to him, this decision is linked to economic policy as well as global security and geopolitical balance. The US wants its partners to reduce trade with countries like Russia and create more opportunities for American companies.
Protest in India and Impact on Trade
As soon as the tariff was implemented, opposition to American policy began in India. From the business community to political circles, everyone termed this move as a blow to India's economy. Trump acknowledged that this has led to tension in trade cooperation with India. He said, "This is a very big deal, and it has created tension with India."
Bilateral trade between India and the US amounts to approximately $190 billion annually. Trade relations between the two countries are considered strategically and economically important. However, this cooperation is being affected by Trump's tariffs. The US has made it clear that a reduction in tariffs is possible only if India opens up its agriculture and dairy sectors to American companies. Despite negotiations so far, no concrete agreement has been reached between the two countries.
Potential Solution to Tariffs
However, Trump has indicated that he may hold talks with Prime Minister Narendra Modi. He said that if the talks are positive, a new trade deal could be agreed upon soon. The US wants India to increase openness in the trade sector for American companies so that economic cooperation between the two countries can be strengthened.
This situation is challenging for India. On one hand, it needs to find alternative sources for energy security, and on the other hand, it must balance its trade interests. Access to the American market is important for India, hence diplomatic dialogue and trade agreements are necessary to mitigate the impact of tariffs.
