Washington, September 2(HS): The Trump administration in the United States has imposed punitive 50% tariffs on Indian goods, the highest among Asian nations, primarily to penalize India for its continued purchase of discounted Russian oil, which the US argues is financing Russia’s military offensive in Ukraine. US Treasury Secretary Scott Bessent expressed hope that the longstanding trade frictions between the two democratic giants will be resolved soon, emphasizing that the two great countries will get this solved. Despite ongoing tensions, Bessent downplayed the significance of India's engagement with Russia and China at the Shanghai Cooperation Organisation (SCO) summit, labeling it as largely performative and underscoring shared democratic values between the US and India.

The tariffs came into effect after slow progress in India-US trade negotiations, which failed to reduce US tariff rates from their high levels. The Trump administration accused India not only of buying Russian crude but also of profiting by refining and reselling it, actions deemed as supporting Russia’s war effort. Trump previously labeled US-India trade a one-sided disaster and claimed India had offered to reduce its tariffs to zero, though he warned the opportunity for resolution was getting late.

India has rejected accusations of wrongdoing, insisting on its right to secure energy supplies irrespective of geopolitical pressure, and has vowed not to concede to US demands amid the trade tensions. Prime Minister Narendra Modi’s government has taken steps to mitigate the tariffs' impact and emphasized self-reliance in trade and production during recent public addresses.

Meanwhile, the Trump administration signals readiness to consider further sanctions on Russia if hostilities in Ukraine persist, with all options reportedly on the table as Washington monitors Moscow’s continued military escalation despite recent peace talks. The trade dispute adds complexity to the strategic relationship between the world’s two largest democracies and may affect millions involved in export-dependent sectors in India.

This development marks a critical juncture in US-India economic relations, with repercussions expected on both sides as negotiations and diplomatic engagements continue under the shadow of broader geopolitical tensions.

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Hindusthan Samachar / Jun Sarkar