Is Trump using pressure tactic on India? US doubles tariffs to 50% ahead of trade talks on August 25

US President Donald Trump on Wednesday (Aug 6) imposed additional 25 per cent tariffs on Indian imports on top of 25 per cent duties imposed earlier, marking an escalation in the trade tensions. According to the executive order signed by Trump, the move has been taken in response to India’s continued purchase of oil from Russia. This comes weeks ahead of trade talks scheduled on August 25, raising questions about whether the recent decision taken by the US president is a bid to pressure India.

“I find that the Government of India is currently directly or indirectly importing Russian Federation oil,” the executive order reads. “Accordingly, and as consistent with applicable law, articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25 percent.”

Trump also threatened any retaliation against the US in the order, saying that, “Should a foreign country retaliate against the United States in response to this action, I may modify this order to ensure the efficacy of the actions herein ordered.”

A similar warning to Russia was stated in the order: “Should the Government of the Russian Federation or a foreign country impacted by this order take significant steps to address the national emergency described in section 1 of this order and align sufficiently with the United States on national security, foreign policy, and economic matters, I may further modify this order.”

The recent announcement by the White House came two days after India called the tariffs “unjustified and unreasonable”. On Monday (Aug 4), National Security Adviser Ajit Doval said that “India will take all necessary measures to safeguard its national interests and economic security.”

US-India trade talks

News agency PTI reported on July 29 that a new round of trade negotiations between India and the US will take place between August 25-29. The upcoming meetings will mark the sixth round of talks between the two nations after they failed to secure a deal before the August 1 deadline imposed by Trump

Last month, the US president announced 25 per cent tariffs on India and several other nations, which are set to take effect from August 7, as per a statement by the White House.

Why did the previous round of talks fail?

According to a Reuters report citing government officials from India and the US, the previous rounds of negotiations failed due to “a mix of political misjudgment, missed signals and bitterness.” The talks faltered despite technical agreements on most issues, the report added.

“Trump saw the issue differently and wanted more concessions,” the report said. It further cited a White House official as saying that the US did not get “a deal that we were looking for.”

The report also added that an Indian official acknowledged that New Delhi wasn’t ready to match what others offered.