Despite the deepening of commercial tension between the US and India, US Finance Minister Scott Besant has expressed confidence that the two countries will eventually “come together.” Even after US President Donald Trump imposed a 50% import duty on Indian goods, Besant said, “India is the largest democracy in the world and America is the world’s largest economy. Finally we will come together.” He, however, also admitted that dialogues have now become “more complex”.
This step of America has come only a few weeks after that additional 25% fee, which was imposed on India to buy oil and defense equipment from Russia. It is considered to be the most rigorous unilateral step taken by Washington on New Delhi since the beginning of the trade dispute.
New Delhi has made it clear that agriculture and dairy products are its “red line sector” and they cannot be compromised in any agreement. Prime Minister Narendra Modi said earlier this week, “Whether it is a small entrepreneur of my country, farmer or cattle, everyone’s interests are paramount for me. My government will not let them come in any way. No matter how much pressure comes, we will continue to increase our strength.”
Besant reported that the US was expecting a concrete agreement until the initial summer, but the conversation was further complicated by India continuing to import crude oil from Russia at concessional rates. He said, “India started a talk on tariff soon after Independence Day, but no deal has been done so far.” He termed parts of New Delhi’s stance as “dramatic”.
This new phase of trade dispute has increased pressure on the relations between the two countries, but high -level expectations will definitely lead to a way in the coming months.
