US trade negotiations with India face pressure from tariffs, but Vikas Swarup maintains India has not succumbed to such tactics.
In a move that has sent ripples through the global trade landscape, US President Donald Trump has imposed tariffs on Indian goods. The tariffs, initially set at 10%, were later increased to 50%, with the deadline for the initial tariffs pushed back to August 1, 2025.
The reasons behind these tariffs are not solely about traditional trade issues. They are deeply entangled with geopolitical strategies involving the BRICS alliance, regional South Asian security dynamics, and the US's efforts to isolate Russia economically amid the Ukraine war.
Trump considers the US-India trade relationship unbalanced, citing India's high trade barriers and a significant US trade deficit with India. The tariffs aim to pressure India into opening its markets and agreeing to a trade deal with the US.
A separate 25% tariff targets Indian imports of Russian oil. Trump views India's purchase of Russian oil as financially supporting Russia's war against Ukraine, and uses tariffs to pressure India to cut those imports. The enforcement of this tariff is connected to ongoing US-Russia talks and could be suspended if satisfactory progress is made.
Trump apparently dislikes India's membership in BRICS, a group viewed by him as an anti-American alliance trying to create alternatives to the US dollar and its global dominance. Part of Trump's tariff strategy stems from his suspicion and desire to limit India's involvement with BRICS.
The tariffs also reflect Trump's displeasure with India's independent foreign policies and perceived lack of acknowledgment of his role in South Asian ceasefire efforts. This stems from a ceasefire between India and Pakistan, following India's military action (Operation Sindoor) in response to terror attacks. However, Indian officials reject Trump's role, which has apparently upset him and contributed to his decision to impose tariffs and exert pressure on India.
As the tariffs continue to unfold, both India and the US are expected to discuss a Bilateral Trade Agreement (BTA) during a meeting in Alaska on August 15, 2025. The purpose of the meeting remains unclear, as does the context surrounding the summit meeting between President Trump and President Putin, also scheduled for August 15.
India's Commerce and Industry Minister, Piyush Goyal, has made a statement in both Houses of Parliament, affirming that the government is examining the impact of tariffs and will take all necessary steps to safeguard the national interest. Former diplomat Vikas Swarup has stated that the tariffs are part of Trump's pressure tactics to get India to sign on the US's maximalist demands regarding access to Indian dairy, agriculture, and GM Crops.
The ongoing situation between the US and India promises to be a fascinating study in the interplay of trade, geopolitics, and diplomacy in the 21st century. As events unfold, it will be interesting to see how both nations navigate this complex web of interests.
- The ongoing tariff dispute between the US and India, beyond trade issues, is linked to US foreign policies, such as its opposition to the BRICS alliance, concerns over India's independent foreign policies, and efforts to limit India's involvement in regional South Asian security dynamics.
- The tariffs on Indian oil imports from Russia are connected to US-Russia talks, as the tariff's enforcement is contingent on satisfactory progress in those discussions, reflecting US President Trump's stance against Russia's actions in Ukraine.
- Future developments in the US-India trade relationship, including the potential Bilateral Trade Agreement (BTA) to be discussed in a meeting in Alaska on August 15, 2025, are expected to showcase the intricate interplay of trade, geopolitics, and diplomacy in the 21st century.
