Donald Trump Halts Trade Talks With India Amid Soaring 50% Tariff Dispute

Donald Trump Halts Trade Talks With India Amid Soaring 50% Tariff Dispute

White House doubles tariffs on Indian imports, citing national security and Russian oil trade concerns

Key Highlights

  • US doubles tariffs on Indian goods to 50% through an Executive Order.
  • Trump rules out trade negotiations until the dispute is resolved.
  • National security concerns cited due to India’s continued Russian oil imports.
  • PM Modi vows to protect farmers, fishermen, and dairy sectors despite economic costs.

White House Imposes Additional 25% Tariff on Indian Goods

On Wednesday, the White House issued an Executive Order adding 25 percentage points to existing tariffs on Indian imports, raising the total to 50%.

The Biden administration cited national security and foreign policy reasons, specifically pointing to India’s ongoing imports of Russian oil, both direct and indirect. The order claims these imports pose an “unusual and extraordinary threat” to US interests, justifying emergency economic measures.

Trump Says No Trade Talks Until Dispute Resolved

When asked by ANI at the Oval Office about the possibility of resuming negotiations, US President Donald Trump was clear:

“No, not until we get it resolved.”

The initial 25% tariff came into effect on 7 August, with the new levy taking effect in 21 days. Exemptions apply for goods already in transit and specific categories deemed essential.

India’s Firm Response: ‘We Will Not Compromise’

Speaking at the MS Swaminathan Centenary International Conference in New Delhi, Prime Minister Narendra Modi took a defiant stance:

“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 we will have to pay a heavy price for it, and I am ready for it. India is ready for it.”

India has consistently resisted opening agriculture and dairy sectors to foreign competition, citing the potential impact on millions of rural livelihoods.

Trade Tensions at an All-Time High

This latest move marks a sharp escalation in US–India trade tensions, with both nations holding firm on their economic policies and national interest priorities.

Also Read : PM Modi Says He’s Ready to Pay Price to Protect Farmers Amid Trump Tariffs