In brief
President Trump shared that India has proposed to reduce its tariffs 'to nothing,' amidst a backdrop of escalating trade issues between the U.S. and India, particularly over India's oil purchases from Russia. With U.S. tariffs on Indian goods recently instituted at a hefty 50%, Trump criticized the trade relationship as one-sided. Meanwhile, India has yet to comment on Trump's assertion, and tensions have reportedly stirred since India's Prime Minister Modi is currently active in global discussions with leaders from Russia and China.
US President Donald Trump has announced that India is considering cutting its tariffs ‘to nothing’ even while describing the ongoing trade imbalance as ‘a totally one-sided disaster.’ The U.S. recently implemented tariffs reaching 50% on goods imported from India, a decision that has been influenced by India’s continued purchases of Russian oil.
Trump’s comments coincide with Indian Prime Minister Narendra Modi’s participation in the Shanghai Cooperation Organisation (SCO) summit, where he met with leaders including China’s Xi Jinping and Russia’s Vladimir Putin.
India, which has faced criticism for funding Russia’s activities through oil imports, has not yet responded to Trump’s claims. The country’s commerce minister previously voiced strong opposition to the imposed tariffs, describing them as ‘unfair, unjustified, and unreasonable.’ Meanwhile, reports of the U.S.-India trade relationship suffering have surfaced, as Washington maintains that India should have altered its economic practices years ago.
At the summit, interactions between Modi and Putin have generated media attention, possibly signifying a shift in alliances. As trade relations continue to fluctuate, both nations appear to be standing firm in their respective economic strategies.
