As president trump unilaterally announced a steep 25% tariff on Indian exports, there is very little hope left for any favorable trade deal. Ever since vice president JD Vance visited India earlier this year, talks of a trade deal was being heard, and the commerce minister Piyush Goyal had been camping trying to seal one. Trump also announced a penalty, for violating US sanctions against Russia in buying weapons and oil. This announcement has exposed the performative foreign policy of the modi regime. While it has more or less continued the rates of around 26% announced in April, the manner in which it was done is not friendly at all. His imposing of penalty is particularly condescending. The Ukraine war is in its 4th year now and India has been purchasing Russian oil regularly. The foreign minister had been giving terse replies to Europe citing India’s sovereignty and interests and calling the sanctions an Eurocentric approach. In all likelihood India would not lower its tariffs, but it would lose its trade surplus significantly. This could affect the already precarious trade and current account deficit. It also raises questions about the deal offered by president trump, which he claims affected the ceasefire between India and Pakistan.
A friendship gone sour
