• Source:JND

The United States has sent a clear message to India that unless New Delhi makes significant concessions, Washington is unlikely to ease its stance. This warning came from top Trump adviser Kevin Hassett, who commented on the recent escalation in trade tensions following the doubling of US tariffs on Indian goods to an unprecedented 50 per cent.

“If the Indians don’t budge, I don’t think President Trump will,” Hassett stated while discussing the ongoing India-US trade negotiations. He described the bilateral relationship as “complicated,” citing India’s reluctance to open its markets to American products. According to Hassett, this “intransigence” has become a sticking point, preventing the swift resolution that Washington had hoped for.

Trade Tensions Tied To Global Issues

Hassett highlighted that the trade friction is not solely about economics but is intertwined with broader geopolitical concerns. “Part of it has been tied to the pressure we’ve been trying to put on Russia in order to secure a peace deal and save millions of lives,” he noted. “It’s almost like it’s not about Ukraine at all… Tariffing India won’t stop Putin. If Trump really wanted to address Russia’s illegal invasion of Ukraine, maybe punish Putin and give Ukraine the military aid it needs. Everything else is smoke and mirrors.”

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The imposition of the new tariffs marks a sharp escalation in US-India trade tensions. The 50 per cent duty applies broadly to Indian imports and includes an additional 25 per cent levy on Indian purchases of Russian crude oil. This makes India the only country aside from Brazil facing such steep trade barriers from the United States.

Negotiations Hit Roadblock

During an interview with Fox Business, trade expert Bessent criticised India for being “a bit uncooperative” during negotiations. “I’d thought we’d have a deal in May or June; that India could be one of the earliest deals. But they, kind of, tapped us along,” he said, adding, “This is a very complicated relationship.” Nonetheless, he expressed optimism about a future resolution, noting, “I do think India is the world’s largest democracy, and the US is the world’s largest economy. I think at the end of the day we will come together.”

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India, for its part, has taken a firm stance against US pressure. Prime Minister Narendra Modi has emphasised that the country will “never compromise” the interests of Indian farmers, signalling New Delhi’s readiness to withstand the economic strain caused by the tariff hike.