US slaps 25% tariff on India as talks stall over geopolitical rifts and strategic tensions
US-India trade talks stall as Trump imposes 25% tariff citing geopolitical rifts, raising tensions and risking strategic ties. - REUTERS
WASHINGTON: Differences between the U.S. and India cannot be resolved overnight to arrive at a trade deal, a senior U.S. official told reporters late on Thursday, citing geopolitical disagreements.
AI Brief
- The US announced a 25% tariff on Indian goods, straining trade talks and risking a key strategic partnership.
- Geopolitical issues like India's ties with Russia and BRICS membership are complicating negotiations.
- India rejects outside involvement in its regional affairs, while Trump strengthens ties with Pakistan.
President Donald Trump said on Wednesday Washington was still negotiating with India on trade after announcing earlier that day the U.S. would impose a 25% tariff on goods imported from the country starting on Friday.
The 25% figure would single out India more severely than other major trading partners, and threaten to unravel months of talks between the two countries, undermining a strategic partner of Washington's and a counterbalance to China.
KEY QUOTES
"Our challenges with India, they've always been a pretty closed market... there are a host of other kind of geopolitical issues," the U.S. official said. "You've seen the president express concern about, you know, membership in BRICS, purchases of Russian oil and that kind of thing."
While saying there were constructive discussions with India, the official added: "These are complex relationships and complex issues, and so I don't think things can be resolved overnight with India."
CONTEXT
India has faced pressure from the West, including the U.S., to distance itself from Moscow after Russia invaded Ukraine in early 2022. New Delhi resisted that pressure, citing its longstanding ties with Russia and its economic needs.
Trump has cast the BRICS group of developing nations - of which India is a key part - as hostile to the U.S. Those nations have dismissed that accusation and the group says it promotes the interests of its members and of developing countries at large.
Trump has also drawn India's frustration by repeatedly taking credit for an India-Pakistan ceasefire that he announced on social media on May 10. The ceasefire halted days of hostilities between the nuclear armed Asian neighbors.
India's position has been that New Delhi and Islamabad must resolve their issues directly without outside involvement.
Trump has reached a trade deal with India's rival Pakistan.
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