&imwidth=800&imheight=600&format=webp&quality=medium "Trump rules out trade talks after PM Modi's 'India would not compromise' statement on tariffs: What this means?")
Days after imposing a total of 50 per cent tariff on India, United States President Donald Trump has said that there is no possibility of trade negotiations with New Delhi unless the issue of tariffs is resolved. Speaking to reporters at the White House on Thursday (Aug 7), Trump said that he does not expect increased trade negotiations with India after imposing the tariff. He shrugged his shoulders at the reporter's question and said that he wants to first resolve the issues. While Trump did not clearly mention what issues he is referring to, his statement seems to hint at India's oil purchase from Russia, due to which the US has imposed an additional 25 per cent levy on the country. Meanwhile, the US has said that addressing ‘real concerns’ and having a ‘frank and full dialogue’ on trade imbalances and other things is Trump's way of looking at ties with partner countries such as India.
‘India would not compromise’: PM Modi
Notably, Trump's remark came hours after Indian Prime Minister Narendra Modi said that he won't compromise the interests of farmers, dairy farmers and fishermen of his country, even if he has to pay a price for it. Earlier, reports indicated that India is not agreeing to any terms by the US in the trade deal that would affect its farmers and dairy sector. Speaking at the MS Swaminathan Centenary International Conference, Prime Minister Modi said, "For us, the interest of our farmers is our top priority. India will never compromise on the interests of farmers, fishermen and dairy farmers. I know personally, I will have to pay a heavy price for it, but I am ready for it. Today, India is ready for the country's farmers, fishermen and dairy farmers..."
India-US trade talks and tariff war
On August 1, Trump issued an executive order late on Thursday (July 31) to increase and modify tariffs on its trading partners, citing an ongoing national emergency. This was in continuation of his ‘Liberation Day’ tariffs that he announced on April 2. He had paused the April 2 tariffs, giving countries a window of 90 days to sign a trade deal with America. The new tariff structure ranged from 10 per cent to 41 per cent, depending on the country and product type. India faced 25 per cent tariff in the announcement made on that day as it was unable to strike a trade deal with the US. He then announced an additional tariff of 25 per cent on India for buying Russian oil and warned about doing the same with other nations. While the 25 per cent tariff announced on Aug 1 has come into effect today, the additional sanction will come into place 21 days from now.
