Introduction:
Such a trade relationship which seemed positive from the beginning has broken down. Trump Cancelled on indian trade deal and it seems that forming an economic partnership with a change-minded Trump administration government is very risky.
Such a trade deal relationship which seemed positive from the beginning has broken down. It seems that forming an economic partnership with a change-minded Trump administration government is very risky. Narendra Modi and Donald Trump shake hands before the start of a press conference in the East Room of the White House on February 13, 2025,
India was seen moving quickly to cancelled the trade deal with Finnoise Fast Progress. Narendra Modi inaugurated the White House, in which there was a discussion on trade and politics between the two countries America and India which lasted for a few months. Which ultimately resulted in good negotiations. And till the month of July, Indians were confident that an agreement on the trade deal had been reached.
The US-India trade deal was delayed due to political hesitation:
Donald Trump imposed an extra tax of 25% to stop India from buying Russian oil. Thus, a total of 50% tariff was imposed on Indian goods, which was a double blow for both Moscow and New Delhi. India buying Russian oil and Trump thinking that India is not reducing, its import tax much, both of them cancelled, this trade deal after meeting.
The collapse of a promising trade relationship between India and the US shows how risky. It is to have an economic partnership with Trump’s unpredictable administration. Which openly uses high tariffs to get its way. Now we are in such a situation that Trump is angry with India.
India and the U.S. had built a good relationship with 25 years of hard work. Which seems to be getting spoiled in 25 hours. Mukesh Aghi, who is the president of the India-US Strategic Partnership Forum said all this. We have to stop this bad situation by some means or the other. Because the relationship between India and US, is very important for both the countries.
Trump’s taxes policies backfire, strengthen India-Brazil-Russia ties:
It is strengthening its relations with countries like Brazil, Russia, China, India The US is in a difficult situation. Brazil President Lula spoke to Modi and requested him, to give his answer on the gay tax imposed by Trump. This is a part of the economy of the BRICS group of countries.”
Trump quickly shifted his focus from India, to the European Union talks with India were stopped. India, which is one of those countries in the world where the highest tariffs are imposed. They did not agreed to reduce trade barriers but everything was not ended.
According to a government administration official, anonymity was given for speaking openly about the talks going on between the two countries. The difference became even more clear when other countries like Indonesia were offering similar trade deals. And completely eliminating, most of their taxes and bringing them down to zero.”
Earlier, Trump was continuously launching attacks on Ukraine, and was feeling angry. He imposed an extra tariff of 25% on India over the massive purchase, of Russian oil. India bought oil worth 52.7 billion dollars from Russia last year, some part of which was refined and sent to Europe.
Statement by Brazilian President Lula:
Brazil President Lula spoke to Modi and requested him to give his answer on the gay tax imposed by Trump. This is a part of the economy of the BRICS group of countries”with India. A person close to the Trump administration, whose name was withheld to share details of private conversations. is saying that according to him the trade deal had been finalized aserval weeks ago.
Indian officials thought that the deal had been finalised, and was just waiting for Trump’s approval. President Trump himself said that he is confident, that a trade deal with India will be finalised very soon. America is on very good terms, we are very close to India and maybe we can do a deal with the European Union, as well Trump said in mid July.
India’s reaction to Trump’s decision:
India is saying that it buys Russian oil to maintain the country’s energy security. It has been blamed and it is only being targeted. Whereas, like the EU which buys most of Russia’s natural gas and Turkey which buys Russian coal. The same administration has not imposed any restrictions on it.
Randhir Jaiswal, India’s (Vizarat-e-Kharja) gave his statement. America decided to impose extra taxes on India, many of them are getting their national benefits for those works
By Thursday, Trump had hinted to the media that not just India other countries are also buying oil from Russia. And hence they too may have to face secondary sanctions.
Conclusion:
Trump cancelled on indian trade deal and in just eight hours, Trump signed an executive order to impose extra tax on India. America and India trade talks are on going, and if an agreement is reached before 27 August. Then India will not have to face 50% tariffs. Trump did not criticise the Prime Minister called him a friend. And also said that the communication channel for discussions should remain open.
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