Trump to Meet Putin Amid Soaring India-US Tariff Tensions
- US imposes 50% tariffs on Indian imports, citing Russian oil purchases.
- Trump rules out trade talks with India until tariff dispute is resolved.
- Moody’s warns India’s GDP growth could slow to 6% if tariffs fully take effect.
US President Donald Trump said on Friday that he will sit down with Russian President Vladimir Putin next week in Alaska, while tensions rise with India over high US tariffs. The tension comes amid Washington's imposition of more duties on India for continued buying of Russian oil, widely condemned by Indian leaders.
The Indian government nevertheless debunked claims that defence procurement negotiations with the US have been suspended. "Different procurement cases are being pursued in accordance with the prevailing procedures," a senior Ministry of Defence official explained.
During the tariff standoff, Trump rejected trade negotiations with New Delhi until the issue is settled. India and the US have been in talks to sign a Bilateral Trade Agreement (BTA) since March, aiming to double bilateral trade to USD 500 billion by 2030 from USD 191 billion currently. Five rounds of talks have been held so far.
The Indian government nevertheless debunked claims that defence procurement negotiations with the US have been suspended. "Different procurement cases are being pursued in accordance with the prevailing procedures," a senior Ministry of Defence official explained.
During the tariff standoff, Trump rejected trade negotiations with New Delhi until the issue is settled. India and the US have been in talks to sign a Bilateral Trade Agreement (BTA) since March, aiming to double bilateral trade to USD 500 billion by 2030 from USD 191 billion currently. Five rounds of talks have been held so far.
Also Read-Trump Threatens Sharp Tariff Hike on India Over Russian Oil Trade
Tensions were further heightened when the US slapped 50% tariffs on Indian imports half already in place since Thursday, and the rest, tied to Russian oil purchases, due on August 27.
Moody's Ratings cautioned that India's economic growth could be reduced by 30 basis points to 6% in the current fiscal if tariffs have maximum impact. Nevertheless, high domestic demand and a strong services sector would mitigate the shock. India's response will determine the final impact on growth, inflation, and external stability.
White House trade adviser Peter Navarro stated the extra 25% tariff is a "national security issue" related to India's "refusal to cease purchasing Russian oil."
Tensions were further heightened when the US slapped 50% tariffs on Indian imports half already in place since Thursday, and the rest, tied to Russian oil purchases, due on August 27.
Moody's Ratings cautioned that India's economic growth could be reduced by 30 basis points to 6% in the current fiscal if tariffs have maximum impact. Nevertheless, high domestic demand and a strong services sector would mitigate the shock. India's response will determine the final impact on growth, inflation, and external stability.
White House trade adviser Peter Navarro stated the extra 25% tariff is a "national security issue" related to India's "refusal to cease purchasing Russian oil."
