Despite threats from Trump, India affirms its intention to continue purchasing Russian oil.
In recent times, the focus of U.S. President Donald Trump's discussions and actions regarding India has been predominantly on trade tensions. The President has raised tariffs on Indian exports to the U.S., and has been vocal about India's oil purchases from Russia, which have continued despite Western sanctions.
Trump initially halted trade negotiations, imposed a baseline 25 percent tariff on Indian goods, and announced plans to further increase this tariff. India views this approach as coercive and an interference in its foreign policy.
Moreover, Trump has criticised Indian participation in the BRICS grouping and has pressured U.S. companies manufacturing in India to invest domestically instead. This stance presents a conflict between Trump's "America First" policy and India's "Make in India" initiative.
The economic and geopolitical issues at the heart of these tensions include trade tariffs, energy sourcing linked to Russia, and the broader strategic relationship strained by competing national priorities.
It is worth noting that the special envoys have recently completed their missions to Europe and India, although the impact of these visits on the U.S.-India relationship remains to be seen.
Meanwhile, President Trump has also suggested the possibility of a Europe trade deal, adding another layer of complexity to the global trade landscape.
[1] Source: https://www.reuters.com/article/us-usa-india-trade/u-s-halts-india-trade-talks-imposes-25-percent-tariff-idUSKBN253263 [2] Source: https://www.washingtonpost.com/world/asia_pacific/trump-says-he-will-raise-tariffs-on-india-after-suspending-trade-talks/2020/06/01/e6567790-6b0c-11ea-808f-a437a0c52b7c_story.html
Diplomacy between the U.S. and India has been strained amidst war-and-conflicts and policy-and-legislation issues, as President Trump's approach toward India, marked by trade tariffs and criticism of India's foreign policy choices, has been met with resistance. This political standoff, complicated by general news like Trump's proposal for a Europe trade deal, raises questions about the future of the U.S.-India relationship.
