Donald Trump is reportedly upset with India over tariffs and oil purchases from Russia. India's role in BRICS and tariffs on American products are key sources of Trump's irritation.
Trump India Tariff: US President Donald Trump is once again in the news for his sharp stance against India. Recently, he announced a 25 percent tariff on India, citing India's oil trade with Russia as the main reason. But is Trump's displeasure solely due to this? Or are there other strategic and economic reasons behind it?
Tensions in US-India Trade Relations
During the Trump administration, negotiations for a trade agreement between the US and India were repeatedly stalled and restarted. Trump wanted India to reduce tariffs on American dairy and agricultural products. India refused to do so, considering its food security and the interests of small farmers. This greatly angered Trump.
Trump has also repeatedly stated that India imposes excessive tariffs on products imported from the US. For example, Trump has publicly expressed his displeasure several times regarding the tax imposed by India on Harley Davidson motorcycles. He believes that India engages in unfair trade practices with the US.
India's Deepening Trade Relationship with Russia
During the Russia-Ukraine war, India continued to buy crude oil from Russia at discounted rates. This has been objected to by the US, especially by nationalist leaders like Trump. According to them, supporting Russia goes against America's global strategy.
In fiscal year 2024-25, trade between India and Russia has reached $68.7 billion. This is six times more than before the war. India is now importing 35-40 percent of its crude oil from Russia, which was previously only 0.2 percent. Trump has described this trade as a major step against the US.
Trump's Discomfort with BRICS
BRICS (Brazil, Russia, India, China, South Africa) is an organization that Trump considers anti-American. He believes that this group is trying to challenge America's dominance, especially in its efforts to weaken the primacy of the dollar in the global economic system.
India's active role in BRICS and its collaboration with China and Russia to explore alternatives to the dollar in the global financial system are irking Trump. He said in a statement that BRICS is a strategic alliance against the US, and India is playing a key role in it.
Dollar Strength vs. Alternative Currencies
Another major fear for Trump is that BRICS countries may create a common currency or alternative trade system as an alternative to the dollar. The ongoing discussions between India, China, and Russia, and the increasing trend of using local currencies in trade, are a matter of concern for Trump. He believes this will weaken the dollar's global hold.
He has made it clear that America will not allow the dollar to weaken and will take whatever steps are necessary to prevent it. Putting pressure on India under this strategy may be part of Trump's policy.
Impact of the Tariff War
Trump's decision to increase tariffs on India is not limited to trade between the two countries. It also affects the global market, especially stock markets and the prices of precious metals. Countries like India, which have a large trading relationship with the US, face a direct setback for exporters and importers due to increased tariffs.
Trump Annoyed by India's Independent Policy
India has made its foreign policy more independent and balanced in recent years. Trump does not support this strategy of balancing relations with the US, Russia, and European countries. He wants India to stand by the US and make decisions accordingly. India's strategic independence does not please Trump.
