India-US Trade Deal Hit By A ‘Trump’block: US President Plays Hardball, PM Modi Says ‘Ready For It’

US President Donald Trump seems to playing hardball, threatening India not just with high tariffs but also stalling negotiations on the highly anticipated trade deal. Blaming India’s oil purchase from Russia, the US President earlier this week announced an additional 25% tariff on Indian goods in America.

Now, Trump has created a sense of confusion over the much-awaited India-US trade deal, which has been in limbo already over a few items like agriculture and dairy products. Just a few days after taking the total tariff on Indian goods to 50%, the US President has said there would be no trade negotiations until a dispute over tariffs is resolved.

Issuing an Executive Order on Wednesday (August 6), Trump imposed an additional 25% tariffs on Indian goods, raising the total levy to 50%. The administration cited national security and foreign policy concerns behind this decision, pointing specifically to India’s ongoing imports of Russian oil.

India-US trade deal: What happens to it now?

Trump was recently asked by an ANI reporter at the Oval Office about the status of the trade deal and whether he expected the discussions to resume after the new 50% tariff on India. Responding to the question, the US President stated, “No, not until we get it resolved.”

This is a clear indication that the India-US trade deal is currently on hold.

The United States is of the view that New Delhi’s continued purchase of Russian oil poses an “unusual and extraordinary threat” to their national security. This is why they decided to impose an additional 25% tariff on India goods landing in the US, starting August 27.

Has India-US trade deal ‘Trump’block worried India?

Despite Trump signalling a pause on the talks, India seems unfazed as Prime Minister Narendra Modi gave a stern reply to the US, stressing that New Delhi would not back down in the face of 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,” he said during a speech at the MS Swaminathan Centenary International Conference.

While keen on having a trade deal with the United States, India has clearly stated its apprehension about opening up the agricultural and dairy sectors to global markets, as the move could pose a potential threat to millions of rural families.