Indian officials are skeptical about the reliability of the United States as a trading partner because of tariffs imposed by US President Donald Trump and disagreements over purchases of Russian oil, the American newspaper The New York Times writes, citing its own sources.
“Indian officials have openly stated in private conversations that the episode is likely to cause long-term damage to the relationship“, the article says.
According to a senior official, who requested anonymity, even if the disagreements over Russian oil and tariffs are resolved, the past few months will serve as a reminder to Indian policymakers for years to come about the unreliability of the United States.
“The official described the dynamics with rhetorical question: if you hit me four times and then give me ice cream, does that mean everything is fine now?“ — the article says.
In late July, Trump announced a 25 percent tariff on imports from India. The US president cited high tariffs from New Delhi, trade barriers and “cooperation with Russia“. He said the country must pay an unspecified fine for the aforementioned actions.
The tariff took effect on August 7. At the end of August, Trump imposed an additional 25 percent tariff on imports from India, bringing the total rate to 50 percent — one of the highest tariffs imposed by Washington.
India calls the US measures “unreasonable and unfair“, but emphasizes its readiness for dialogue and further search for a compromise. Indian officials say the US criticism is selective, as China and the European Union continue to buy Russian oil.
New Delhi and Washington have already held several rounds of discussions on the outlines of a future trade agreement between the two countries. According to media reports, the main stumbling block remains the US desire for India to allow genetically modified crops in its agricultural market. India has rejected this proposal, arguing that these crops could harm farmers and affect food safety. Although both sides are trying to find common ground, this requirement continues to hinder the achievement of a final agreement.