After weeks of tension between the US and India over tariffs and purchasing oil from Russia, the President of the United States has announced that both India and the US are looking forward to talking about easing the issue and moving ahead with trade talks. Mr Trump said that he wished the Prime Minister of India on his Birthday on 17th September and had a wonderful talk with him.
He wished PM Modi, saying that he was doing a good job of easing the Russia-Ukraine war. Recently, efforts have been made from both sides to resume trade talks after President Trump imposed 50% tariffs on India. The earlier 25% tariffs were doubled as a penalty on India for buying oil from Russia. Washington felt that the Russia-Ukraine war was fueled due to India’s increasing oil purchases.
Responding to President Trump’s call for peace, Modi reciprocated his stance, saying that he supports the peaceful resolution of the Russia-Ukraine conflict. Ukraine and its European allies have constantly alleged that India and China are undermining the impact of global sanctions by buying oil from Russia. The Russian leader also wished the Prime Minister of India on his birthday and applauded his efforts in strengthening Russia-India relations.
On Wednesday, when the exchange of words between Indian and US leaders took place, the capital market in India improved while the rupee strengthened against the dollar. Amitendu Palit, a senior researcher at the Institute of South Asian Studies, said that Trump was following a carrot-and-stick policy of appeasing the Indians while his party and executive members remained critical of the Indian government. This shows that, though a lot of lines remain, the US administration is trying to follow a diplomatic channel.
Peter Navarro, White House’s official trade advisor, has been constantly throwing taunts at India over the oil purchase. He even labelled the Russia-Ukraine war as the “Modi war”. The previous trade pact commitment between India and the US had broken, as Trump’s administration imposed a heavy tariff on India. Things seem to be calming on both sides, but the path to the trade agreement is still distant.
