Trump Draws Line: No India Trade Talks Until Tariff Dispute Resolved

US imposes 50% tariffs on Indian imports, citing India’s Russian oil purchases. India condemns the move as “unreasonable,” vowing to protect national interests. PM Modi affirms no compromise on farmers’ welfare. SBI warns tariffs may backfire, disrupting US generic drug supplies (35% from India) and raising healthcare costs. Trade tensions escalate.

New Delhi: The trade tension between the US and India has reached a new turn. US President Donald Trump has made it clear that the tariff dispute must be resolved before any trade deal with India can be discussed.

Trump clarified this position in response to the questions in the Oval Office. He has announced a total tariff of 50% on Indian goods, including an additional 25% tariff. Trump alleges that this action has been taken due to India buying oil from Russia, which he described as "fueling the Russian war machine."

This tariff will be implemented in two phases. The first phase has already started with a 25% tariff from August 7, while the additional 25% tariff will come into effect from August 27. However, some products have been exempted from this which were already exempted.

India has strongly criticized this move of America and called it "unfair, unreasonable, and irrational." The Ministry of External Affairs stressed that India's oil imports are based on market conditions and aimed at ensuring energy security for the country's 1.4 billion population. India made it clear that it will take all necessary steps to protect its national interests.

Prime Minister Narendra Modi also reacted to the issue, saying that India will never compromise on the interests of farmers, fishermen, and dairy farmers, no matter how big the cost.

Interestingly, according to an SBI report, this tariff will only hurt the US. India supplies 35% of the US's generic medicines, and it will take 3-5 years to replace.

Revival of Russia India China (RIC Block)

Experts remember how Defence Minister Rajnath Singh had left the SCO summit before its commencement without signing the joint statement, as it did not condemn or mention the sordid Pahalgam terror attacks.

However, Foreign Minister S. Jaishankar had attempted to ameliorate the inimical relations, albeit unpalatably. Experts had anticipated that PM Modi would be less likely to visit China for the SCO Summit. But Donald Trump’s aggressive policies have pushed Russia, China, and India into a new alliance.

China raised its voice in support of India.

China has openly given a statement in favor of India in this matter. Chinese Ambassador to New Delhi Xu Feihong strongly criticized Trump and even called him a "crook." He said that this step of the US is against the rules of the World Trade Organization (WTO), and it weakens the global trade system. China's Foreign Minister Wang Yi also said that using tariffs to suppress other countries is a violation of the UN Charter.