Washington DC: In a significant hardening of diplomatic tone, US President Donald Trump has made it unequivocally clear that trade negotiations with India are off the table until unresolved disputes both economic and geopolitical are settled. Speaking to the press at the White House on Wednesday, Trump bluntly dismissed the possibility of any near-term trade dialogue with India, stating, “No, not until that is resolved,” in response to a question on potential talks following the sharp hike in tariffs.
The United States has recently slapped a hefty 50% import duty on Indian goods, with the first tranche of 25% coming into effect this week. The remaining 25% set to be enforced from August 27 is specifically a retaliatory measure against India’s continued import of crude oil from Russia, either directly or through third-party routes. The White House order mentions, “It is understood that the Government of India continues to import oil from the Russian Federation. As a result, an additional 25% duty shall apply to all Indian imports into the United States.”
This development is viewed as a serious setback for the already strained Indo-US trade relations, especially at a time when both nations are navigating complex global economic pressures and regional security dynamics. Trade experts believe this move may signal the beginning of a more assertive American posture toward India, rooted in concerns not just over commerce, but also over India’s independent foreign policy moves particularly its energy trade with Russia amidst ongoing Western sanctions.
The tariffs are expected to severely impact India’s export-heavy sectors such as textiles, pharmaceuticals, and engineering goods, many of which heavily rely on the US market. Indian officials have not yet issued a formal response, but sources indicate that backchannel diplomacy is underway.
Meanwhile, the political undertones of Trump’s reference to the “unresolved” issue have led to speculation that he may be subtly pointing toward the India-China border tensions as well. Analysts suggest that Washington may be using trade as a lever to nudge India into aligning more closely with US strategic interests, particularly in the Indo-Pacific.
As the tariff deadline approaches, businesses on both sides brace for economic disruption while diplomatic channels scramble for damage control. But for now, the message from the Oval Office is loud and clear there will be no trade handshake until the friction cools down.