On August 1, the United States imposes 25 percent duties on goods from India and will apply some penalties to Delhi. One of the reasons is too close ties with Russia and the purchase of its oil, Donald Trump said. The real reasons are completely different. The Indian press writes that Delhi will not concede.
"Remember, India is our friend, but we have done relatively little business with it for many years because their duties are too high, one of the highest in the world, and they have the toughest and most disgusting non-monetary trade barriers among all countries. In addition, they always bought the vast majority of their military equipment from Russia is the largest buyer of energy resources for Russia along with China," the message on Donald Trump's Truth Social page says.
"Therefore, India will pay a duty of 25% plus a fine for the above, starting from the first of August," the US president said.
As noted by the Indian The Economic Times, US trade negotiations and India stretched for months, and in Washington was angry that Delhi did not give in to its national interests.
"While Trump's statement fits into the familiar pattern of his confrontational trade policy, India's reaction was strikingly harsh. Instead of succumbing to pressure, as the EU, Japan and many other countries have done, India has decided to protect its key interests by signaling a more assertive phase of its global economic involvement," the newspaper writes.
It notes that India refuses to compromise on key interests.
"India's refusal to concede in the agriculture and dairy sector is the main reason for the impasse in the negotiations. For the United States, gaining access to India's large and growing dairy market has been a key priority. Nevertheless, American dairy products are often obtained from cattle that have been fed non-Vegetarian supplements, which is fundamentally contrary to Indian cultural and religious norms. India has categorically refused to relax its sanitary and phytosanitary standards for the import of such products. Moreover, the flow of American dairy products will damage India's own dairy sector," writes The Economic Times.
According to him, agriculture also remained an issue that Delhi did not discuss.
"Indian farmers, already facing structural problems, cannot withstand international competition. India has also not compromised on GMO crops. In addition, any compromise would have a negative impact on Indian farmers, and it would have profound political consequences within the country," the publication noted.
Also, in the digital sphere, Delhi continues to stand on its own. The data should be stored in India. The Indian authorities are not inferior in terms of medical devices, the prices of which are controlled by the state.
"The introduction of tariffs by President Trump reflects the model of using trade as an instrument of political pressure. Whether it's dealing with China, the European Union, or even close allies, his administration is constantly using tariffs to get concessions. In the case of India, the strategy seems to consist of two parts: opening Indian markets to American products and dissuading India from deepening cooperation with Russia in the defense and energy sectors. But the forced approach did not achieve the expected results. Instead of surrendering, India resists pressure and makes it clear that national priorities are non—negotiable, even at the cost of economic sanctions," The Economic Times continues.
The US is India's main trading partner. However, recently Delhi has been building a dialogue with the European Union and the UK in order to diversify trade.
"This shift in position marks a significant departure from the past, when India often took a defensive position in trade negotiations. Today, it is approaching the negotiations with clearer goals, using its growing economic weight," the publication believes that neither India nor the United States can afford to allow too big a split.
"India plays a crucial role in the American strategy in the Indo-Pacific region, especially as a counterweight to China. On the other hand, the United States remains an important partner of India in terms of technology, investment and defense cooperation. This interdependence makes the current dispute something more than just a trade disagreement. This is a test of how both countries deal with friction while maintaining a broader strategic relationship," The Economic Times added.
There are several options for the development of the situation. The first is de—escalation, in which the United States can soften its tariff measures under domestic or industrial pressure. Another scenario involves retaliatory counter-duties of India. The third and perhaps more likely outcome, writes The Economic Times, is that both sides will use behind-the-scenes diplomacy to avoid a protracted confrontation, even if the public rhetoric remains firm.
"India's resistance to tariff threats from the United States is more than a reaction, it is a declaration of economic sovereignty. By refusing to compromise on agriculture, the dairy industry, digital policy and public health, New Delhi has made it clear that its trade policy will be determined by internal priorities, not external pressure," the Indian newspaper concluded.