.India has landed in the middle of the United States’ renewed push to pressure Russia over the Ukraine war. On August 6, President Donald Trump announced that tariffs on Indian goods would rise from 25% to 50%, accusing New Delhi of continuing to buy Russian oil. India immediately pushed back, calling the move ‘unfair’ and ‘unjustified’.
Trump’s decision, aimed at cutting Moscow’s oil revenues and pushing President Vladimir Putin toward a ceasefire, will take effect in 21 days, on August 27. On Thursday, he made it clear that he would not open trade talks with India until the tariff dispute is settled.
“No, not until we get it resolved,” Trump said in the Oval Office when asked about trade negotiations with India.
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India Dismisses US Tariff Rationale
Dammu Ravi, Secretary of Economic Relations at India’s Ministry of External Affairs, criticised the US decision, saying it ‘lacks logic’. He called the hike ‘a temporary aberration, a temporary problem that the country will face’, adding, ‘in the course of time, we are confident that the world will find solutions’.
He also hinted that India could seek to ‘rebalance’ its global partnerships in response to the tariffs. “Like-minded countries will look for cooperation and economic engagement that will be mutually beneficial to all sides,” he said.
Prominent Indian-American attorney Ravi Batra warned that ‘much more is at stake’ as tensions rise between the two countries.
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India Reaches Brazil, Russia, China
On Thursday night, Prime Minister Narendra Modi spoke with Brazilian President Luiz Inácio Lula da Silva about ‘regional and global issues of mutual interest’. Brazil noted that both nations are the most affected by Trump’s levies and should work together to address the challenge.
In Moscow, Russian President Vladimir Putin met India’s National Security Adviser Ajit Doval, with state media reporting they reaffirmed their ‘strategic partnership’. External Affairs Minister S. Jaishankar is set to visit Russia on a pre-scheduled trip, while Modi is expected to host Putin in India later this year.
Modi is also preparing for his first visit to China in more than seven years. He will attend the Shanghai Cooperation Organisation (SCO) summit in Tianjin from August 31 to September 1. He is also planning to meet President Xi Jinping. China’s ambassador to India, Xu Feihong, backed Modi in the tariff dispute, posting on X: ‘Give the bully an inch, he will take a mile’.
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Modi Stands Firm on Farmers’ Interests
Modi addressed the tariff issue publicly for the first time on Thursday, vowing not to compromise on agricultural priorities. “For us, our farmers’ welfare is supreme,” he said in New Delhi.
“India will never compromise on the wellbeing of its farmers, dairy (sector) and fishermen. And I know personally I will have to pay a heavy price for it,” he added.
Tariffs as Part of a Larger US Strategy
Trump’s tariff escalation on India is part of a broader US trade policy. It targets multiple sectors, including semiconductors, pharmaceuticals, autos, steel, aluminium, copper, and lumber. He has warned that duties on microchips could reach 100%.
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China is facing a potential hike on August 12 unless Trump extends an existing truce. He has also hinted at imposing tariffs on Chinese imports of Russian oil, extending his pressure campaign on Moscow.