Rising Tensions:

A major rift has emerged between Washington and New delhi over India’s continued purchases of Russian crude oil.

The dispute threatens ongoing trade negotiations and prospects for tariff relief.


US Position:

Kevin Hassett, director of the white house National Economic Council and top adviser to President donald trump, issued a stern warning.

He said talks with india were “complicated” because of New Delhi’s reluctance to open markets for American goods.

Hassett: “If the indians don’t budge, I don’t think President trump will.”


Tariff Escalation:

The trump administration announced it would double tariffs on indian imports to 50%.

This makes india one of the most heavily taxed trade partners after Brazil.

The package includes a 25% levy directly tied to India’s Russian oil trade.


Geopolitical Link:

Hassett framed the move not only as trade enforcement but also as part of US strategy against Moscow.

He argued pressure on india would help reduce Russia’s revenues and push toward a peace deal.

Hassett likened trade negotiations to a “marathon,” stressing the need for patience amid “ebbs and flows.”


India’s Pushback:

Prime minister Narendra Modi has stood firm, saying india will “never compromise” the interests of its farmers.

Officials emphasize food security and rural livelihoods as non-negotiable priorities.

India insists that economic sovereignty outweighs short-term trade concessions.


Economic Consequences:

New tariffs could hit $48.2 billion worth of indian exports to the US.

Sectors at risk include agriculture, textiles, and manufacturing.

Officials warn that higher costs could make exports commercially unviable.

Potential knock-on effects include job losses, slower growth, and weakened competitiveness in global markets.
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D N INDUJAA

28/08/2025 04:30 PM