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Donald Trump Targets India With 25% Tariffs Over Russian Oil Ties – Trade War Begins?

Donald Trump’s 25% Tariff on Indian Imports Sparks Tension — India Fires Back Over Russia Oil Ties

Donald Trump Targets India Hits Back
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President Donald Trump has fired the opening shot, which could actually become a major trade confrontation in India. Just 8 hours after announcing the new tariffs, the President of India has made it very clear that this is just the beginning of this campaign to pressure countries in trade, like Russia.

 

What Did Donald Trump Announce?

Donald Trump 47th US President
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President Trump signed an executive order on Wednesday that imposes an extra 25 percent tariff on Indian imports. This is in addition to the 25 percent duties that have already been set up. The action directly aims at the current business reliance between India and Russia, especially its humongous oil deals.

It could not have been more timely. Trump is employing economic pressure as a sword to force nations to break their relations with Moscow, in hopes that it will soon lead Russia to an agreement of peace with Ukraine.

 

Trump’s Threat: You Are Going To See So Many More Secondary Sanctions

Trump spoke when he was asked by reporters why India was being singled out, even though other nations, like China, are also buying Russian energy.

“Only 8 hours. Well then, we shall see what happens. You are going to see so many secondary sanctions… You are going to see so many more.”

This is what Trump tells us in this statement and what his strategy is from a wider perspective. India is not the destination — it is just the beginning. Notably, the president is intent on extending such secondary sanctions to other countries that still have trade ties with Russia.

 

Why India Was The First Target?

1. The Problem of Trade Surplus

American officials have been frustrated by India’s large trade surplus with the US. Combined with India’s unwillingness to lessen imports of Russian oil, India clearly became the first target of the new sanctions regime created by Trump.

2. Strategic Calculations

Although India has developed into an important ally in the American competition with China over the past few years, Trump may be willing to compromise this relationship to achieve his peace goals in Ukraine. This is an extremely significant change in Washington’s perception of its alliances.

3. Pakistan Taunt Backfired

Especially the suggestion by Trump that India could purchase oil from Pakistan, its arch-rival, has made New Delhi furious. The remark is alarming evidence of ignorance of South Asian geopolitics and has dealt another blow to diplomatic relations.

 

India Fights Back: The Acute Reply

India went on the offensive in an unusually strong statement, accusing the United States of hypocrisy. New Delhi further noted that although America accuses India of buying Russian oil, America still imports Russian uranium hexafluoride, palladium, and fertilizer.

Formal Government Reply

The Government of India described the tariffs as unfair, unjustified, and unreasonable on Wednesday. More importantly, they promised to take all necessary measures to protect national interests. This is the language implying that India is also mobilizing counterattacks.

 

What Is At Stake?

Research Director Ashley Tellis at the Carnegie Endowment for International Peace in Washington says the corner India finds itself in is a no-win situation: India will now buy less oil from Russia because of the pressure Trump has brought to bear, but it cannot be seen to be compromising by doing so, lest it appears to have buckled under the pressure of Trump’s blackmail.

This gives a losing game to Prime Minister Modi. Any decrease in the purchase of Russian oil will be viewed as surrendering to American influence at home, and maintaining the same level will result in subsequent sanctions.

 

The Progress Of 20 Years Could Be Lost

Tellis cautions that, “We might be dragging ourselves into an unnecessary crisis which could undo a quarter century of painstakingly gained progress with India.” This brings into view how much diplomatic advancement might be ruined because of Trump’s tariff plan.

The move by Trump to confront India is a form of high-stakes gambling. Although it serves as an example of him being willing to put economic pressure in order to pursue foreign policy ends, it is dangerous as it might spoil well-established relationships with strategic partners. A good measure of how other countries will be treated will emerge over the next few weeks, and whether this approach is effective in actually altering Russian behavior.

What remains to be seen is whether Trump can find a way to accomplish his Ukraine peace goals without necessarily ruining the relationships America has with some of its most important allies in the process.

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Praneet Samaiya
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