Trade Tensions Rise: Trump's New Tariff on India

US President Donald Trump has expressed frustration over stalled trade negotiations with India, resulting in the announcement of a 25% tariff on Indian goods effective from August 1, as reported by the White House economic adviser on Wednesday.

National Economic Council Director Kevin Hassett highlighted that Trump is displeased with the lack of progress in talks for a bilateral trade deal. Despite several rounds of negotiations, no substantial results emerged due to unresolved contentious issues. Trump's sudden implementation of tariffs is considered a strategy to pressure India into conforming to US demands, akin to favorable deals with Japan, the UK, and the European Union.

Trump has criticized India's high tariffs and significant purchases of Russian military assets and energy. The US perceives these as barriers to trade and diplomatic relations. With additional penalties anticipated, Trump's move underscores his negotiation style of applying economic leverage to accomplish trade goals. As India prepares to respond, experts suggest maintaining dialogue channels while considering retaliation options.

(With inputs from agencies.)