US-India relations face turbulence as Donald Trump expresses dissatisfaction with trade practices. From tariff disputes to energy purchases, the relationship
is under strain. Let's break down the key issues and the impact on diplomatic ties.
One-Sided Trade Concerns
Donald Trump views the trade balance with India as ‘totally one-sided’. He highlights the disparity in trade volumes, with India selling significantly more goods to the US than vice versa. Trump noted India's recent offer to cut tariffs, but suggested it was delayed. This shift reflects the evolving nature of the relationship.
Tariff Disputes Arise
Trade talks between the US and India saw a setback in August, with a US delegation's planned visit being cancelled amid tensions. Trump imposed a 50% tariff on India, adding to the friction. Ongoing negotiations remained deadlocked over issues like agricultural market access, tariff reciprocity, and existing WTO disputes.
Russia, India's Ties Scrutinized
Trump criticized India's energy purchases from Russia and high tariffs. Senior US officials, like Stephen Miller and Peter Navarro, also publicly criticized India's continued oil purchases from Russia. This added further complications, signaling significant US discomfort with India's approach.
Quad Summit's Uncertainties
Trump's displeasure reportedly influenced plans for the Quad leaders' summit. The former president was supposedly hesitant to travel to India for the summit, which was slated for later in the year. This decision underscores the strained bilateral relationship between the two countries.
Indonesia as a Model
Trump had earlier referenced an ‘Indonesia-style deal’ as a potential model. The agreement with Indonesia resulted in a 19% tariff for the Southeast Asian nation. However, a deal like this was a red line for India, leading to roadblocks in discussions. The model showcased a stark difference in trade approaches.
