Since the ceasefire was announced earlier this month, US President Donald Trump has been adopting a tough posture against New Delhi and visibly leaning more toward Pakistan, despite taking credit for “mediating” the India-Pakistan ceasefire. Trump recently praised Pakistan in a recent interview, describing the Pakistani people as “smart people” who “make many ‘great things.”
Trump’s uncompromising approach to commerce with India
Trump’s remarks coincide with his threats to impose 29% tariffs on Pakistani exports, and his posture toward India on trade has been equally, if not more, abrasive.
The US President has referred to India as the country with the highest tax rate in the world and has threatened to implement reciprocal tariffs on Indian goods. This could potentially render them vulnerable in the American market. Trump has temporarily suspended the 27% tariffs he implemented on Indian exports in early April, and he has also stated that New Delhi has offered to eliminate all taxes on American products.
“Are you aware that they are prepared to lower their 100% tax rate for the United States?” It is imminent. Trump asserted, “I am not in a hurry.” Nevertheless, India’s Foreign Minister S. Jaishankar has refuted Trump’s assertion, emphasizing that trade negotiations are “complex” and that any agreement should be mutually beneficial.
Trump alleges that commerce was employed to violate the India-Pakistan ceasefire.
The Indian market is anticipating a slowdown, and trade talks between India and the United States are presently at a standstill due to recent India-Pakistan tensions, among other factors. Additionally, Trump’s “America First” policy is causing concern.
At the same time, Donald Trump has asserted that Pakistan desires to establish trade relations with the United States, disregarding the fact that the South Asian nation already exports goods valued at over $5 billion to the United States and imports American products valued at approximately $2.1 billion.
Additionally, Trump asserted that he employed trade threats as a means of mediating the ceasefire between India and Pakistan, thereby averting a nuclear conflict in the region.
Trump stated, “I believe it was going to be a nuclear war, or very close,” and he used trade and economics as a bargaining chip to compel the ceasefire. “I am employing trade to reconcile differences and to establish peace,” he asserted.
India is apprehensive about the tariffs imposed by
In the upcoming weeks, Donald Trump is expected to reset his reciprocal tariffs with a number of countries, including India, which has caused concern in Indian markets. Trump’s “America First” policy has been criticized by economic and geopolitical experts, who contend that it benefits the US’ strategic adversaries while harming democratic allies such as India.
India has consented to lower import tariffs on specific US products, such as powerful motorcycles and alcoholic beverages; however, no significant trade agreement has been concluded between the two nations.
