New Delhi: Amid escalating trade tensions, US President Donald Trump has made it clear that negotiations with India will not resume until the ongoing tariff dispute is settled. This follows Washington’s decision to double tariffs on Indian imports, raising the levy from 25% to 50%.
An Executive Order issued this week cited national security and foreign policy concerns, specifically pointing to India’s continued purchase of Russian oil. The order stated that such imports pose an “unusual and extraordinary threat” to the United States, warranting emergency economic measures.
Under the directive, the additional 25% tariff will take effect in 21 days, applying to all Indian goods entering US ports, except items already in transit and certain exempt categories. The measure also allows flexibility for changes based on geopolitical shifts or retaliatory moves by India or other nations.
The US State Department reiterated that India remains a “strategic partner” and that both countries continue to engage in a “full and frank dialogue” despite differences. Officials highlighted concerns over trade imbalance and energy imports from Russia as key sticking points.
Responding from New Delhi, Prime Minister Narendra Modi took a firm stance, declaring that India would not compromise on the interests of farmers, fishermen, and dairy producers. “We know there will be a price to pay, but India is ready for it,” he said during a public address, signalling readiness to absorb the economic fallout.
India has long resisted opening sensitive sectors such as agriculture and dairy to foreign competition, warning of potential harm to millions of rural livelihoods. The current standoff underscores the deepening rift between the two nations, with neither side showing signs of backing down.
