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Trump halts trade talks with India amid ongoing tariff dispute

The US President ruled out trade talks with India after slapping a 50 pc tariff on Indian imports over its Russian oil deals. India slammed the move as unfair and called out the double standards.

News Arena Network - Washington D.C. - UPDATED: August 8, 2025, 08:20 AM - 2 min read

Prime Minister Narendra Modi with US President Donald Trump during his visit to the US earlier this year. (File Photo)


After deciding to put a 50 pc tax on goods from India, US President Donald Trump said there will be no more talks about trade with India until the problem is fixed. This shows a big increase in trade disagreements between the US and India, bringing their relationship to a point it hasn't been at in more than 20 years.


When questioned by reporters in the Oval Office about the prospect of future talks, Trump was unequivocal, "Not until we get it resolved." These remarks came after he was asked why India was being singled out for its continued purchases of Russian oil, while other major buyers like China were not facing similar penalties. Trump had previously warned of new 'secondary sanctions' on countries trading with Russia.


On Wednesday, the US president Donald Trump signed an executive order to impose an additional 25 pc tariff on Indian imports, raising the total tariff to a sweeping 50 pc. The new duties, which target a range of goods, are set to take effect on August 27.


In response, India’s Ministry of External Affairs (MEA) issued a statement calling the move 'unfair, unjustified and unreasonable.' The MEA reiterated that India would take all necessary steps to safeguard its national interests. The statement further explained, "We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India."

 

Also Read: Indian exporters seek govt help to survive Trump’s 25% import tax


In a defiant speech at the MS Swaminathan Centenary International Conference, Prime Minister Narendra Modi declared that India would prioritise its national interests, even if it means paying a 'heavy price.' He made it clear that he would not compromise on the interests of the country’s farmers, fishermen, and the dairy sector, which have been sensitive points in trade negotiations. "I know I will have to pay a heavy price for it personally, and I am ready for it. India is ready for it," Modi said.


India has also criticised what it views as a double standard in Trump's tariff policy. It points out that while it is being penalised, other major importers of Russian oil, such as China and Turkey, have not faced similar measures. Notably, the US had a temporary truce on a 145 pc tariff on Chinese goods, which is set to expire on August 12.

 

Also Read: Trump at it again, warns India of secondary sanctions

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