Trump's Tariff: Differences Between US, India Cannot Be Resolved Overnight, Says Official

(MENAFN- Live Mint) A US official said on Thursday that differences between the US and India cannot be resolved overnight to arrive at a trade deal. He cited geopolitical disagreements to support his argument.

"Our challenges with India, they've always been a pretty closed market... there are a host of other kind of geopolitical issues," the US official was quoted by Reuters as saying.

"You've seen the president express concern about, you know, membership in BRICS, purchases of Russian oil and that kind of thing," the official added.

While saying there were constructive discussions with India, the official said: "These are complex relationships and complex issues, and so I don't think things can be resolved overnight with India."

The official's comments came after Trump said on Wednesday that Washington was still negotiating with India on trade after announcing earlier that day the US would impose a 25% tariff on goods imported from the country starting on Friday.

The 25% figure would single out India more severely than other major trading partners, and threaten to unravel months of talks between the two countries, undermining a strategic partner of Washington's and a counterbalance to China.

India buying oil from Russia

Trump had on Wednesday announced 25% tariff (plus a penalty) on Indian exports, saying that the US has a massive trade deficit with India and also criticised India for buying a“vast majority" of its military equipment and energy from Russia.

“Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country,” Trump said.

“Also, they have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of energy, along with China, at a time when everyone wants Russia to stop the killing in Ukraine - All things not Good!” he added.

"India will therefore be paying a tariff of 25 per cent, plus a penalty for the above, starting on August 1st,” Trump said.

'India's market pretty much closed'

After 25% tariff threat to India, National Economic Council Director Kevin Hassett had reportedly indicated that Trump was upset over the way negotiations on the proposed bilateral trade deal were held.

He said India's market has been pretty much closed to American products, while the US's has been wide open to its own.

On BRICS

Trump has cast the BRICS group of developing nations - of which India is a key part - as hostile to the US. Those nations have dismissed that accusation and the group said it promotes the interests of its members and of developing countries at large.

India-Pakistan 'ceasefire'

Trump has also drawn India's criticism by repeatedly taking credit for an India-Pakistan“ceasefire” that he announced on social media on May 10. The“ceasefire” halted days of hostilities between the nuclear armed Asian neighbors.

India's position has been that New Delhi and Islamabad must resolve their issues directly without outside involvement.

Trump has reached a trade deal with India's rival Pakistan

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