US Tariff Threat Sparks Diplomatic Tensions for India
Indian opposition parties criticize the government for what they call a diplomatic failure after U.S. President Donald Trump announces a 25% tariff on Indian imports. This move singles out India more harshly than other trading partners and could impact India's economic growth and manufacturing ambitions.
On Thursday, Indian opposition parties condemned the government as U.S. President Donald Trump threatened a 25% tariff on Indian imports. They called it a diplomatic setback for New Delhi, while the rupee and equity indexes tumbled.
Trump's decision, effective from Friday, singles India out harshly compared to other major trading partners, jeopardizing months of diplomatic negotiations. In response, Prime Minister Narendra Modi's government is assessing the implications and remains committed to securing equitable trade agreements.
The tariff announcement has sparked criticism over India's foreign policy under Modi, with Congress party lawmakers deeming it an economic and diplomatic failure. Notably, economist Priyanka Kishore termed the tariff a 'raw deal' for India, raising concerns about its allure as an alternative to China in global supply chains.
(With inputs from agencies.)
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