India-US trade talk: US President Donald Trump has put trade talks with India on ice, saying negotiations will not resume until the dispute over tariffs is resolved. Speaking at the Oval Office, Trump told ANI, “No, not until we get it resolved,” when asked if discussions could restart in light of a new 50 per cent duty on Indian imports.
The statement came just hours after the White House issued an Executive Order doubling tariffs on Indian goods, citing national security and foreign policy concerns linked to India’s continued imports of Russian oil.
Tariffs raised to 50 per cent
Under the order, an additional 25 percentage points have been added to the existing 25 per cent levy on Indian goods, bringing the total to 50 per cent, making India among the highest import tax brackets imposed under Trump. The administration argues that India’s purchases of Russian crude, whether directly or via intermediaries, constitute an “unusual and extraordinary threat” to US national security.
In the document, Trump wrote, “The actions and policies of the Government of the Russian Federation continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States. I find that the Government of India is currently directly or indirectly importing Russian Federation oil.”
The initial 25 per cent tariff came into effect on August 7. The newly announced additional levy will apply in 21 days to all Indian goods entering US ports, with exemptions for items already in transit and certain designated product categories. The order grants the president authority to amend or remove the measures should geopolitical conditions shift or if India and other nations take retaliatory action.
India’s response
Prime Minister Narendra Modi responded firmly during a speech at the MS Swaminathan Centenary International Conference in New Delhi. “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,” he said.
New Delhi has categorically refused to open sensitive sectors such as agriculture and dairy to international competition, arguing that doing so could threaten the livelihoods of millions of rural households.
Meanwhile, India is actively engaging with the US to resolve the trade dispute sparked by Washington’s additional tariffs on Indian imports. According to a CNBC TV18 report citing government sources, New Delhi has a 21-day window to negotiate a solution, aiming for a mutually beneficial outcome within the framework of the Bilateral Trade Agreement (BTA).