Trump Tariffs: A New Chapter in Trade Relations
Will he? Or, won’t he? The question remains. But going by the feelers one gets after the landmark meeting between US President Donald Trump and Russian President Vladimir Putin in Alaska a while ago, India might not have much to rue about in the coming days. However, such optimism needs to be seen as something India would want to hold aloft.
Soon after the meeting with President Putin, President Trump hinted that the US may not go ahead with fresh secondary tariff on nations who continue to buy crude oil from Russia. The moment President Trump dropped the hint, India had something to feel happy about. But then, as it has come from President Trump, nothing could be considered until a definitive statement comes about!
Welcome words; yet not sure
The US President’s words are indeed a welcome relief for India as the nation had been worried about impending penalties in case Washington decides to slap secondary sanctions. President Trump was quoted saying that, “…Russian President Vladimir Putin lost an oil client, so to speak, which is India, which was doing about 40 per cent of the oil. China, as you know, is doing a lot. And if I did what’s called a secondary sanction, or a secondary tariff, it would be very devastating from their standpoint. If I have to do it, I’ll do it. Maybe I won’t have to do it.” Well, that is not a concrete statement by any standard, but an optimistic India would want to see these words as hinting towards a positive move from Washington.
The US imposed tariffs are something India would not want to bear for long. On August 7, the US had imposed a 25 per cent duty on Indian imports. And soon after this, President Trump slapped an additional 25 per cent levy on Indian oil purchases from Russia. That meant the total tariff burden on Indian goods shot up to 50 per cent. From August 27 on, the second round of duties are due to begin.
India hopes for a concrete statement
India had in strong terms described the tariff move as unfair and unjustified. The country’s contention is that energy imports into the country are linked to national security. And, it termed the tariffs unnecessary when European countries have been importing Russian oil at much higher levels.
President Trump’s words, anyway, ushers in some amount of relief. However, it needs to be agreed that a definite plan or statement following up on the US President’s words have not come about after all. That could be something India would now be looking forward to. Secondary tariffs would mean much worry for the country. But then, India would prefer to stay optimistic and look forward to seeing the hint dropped by President Trump to be followed by an official statement. But, no one knows whether it would come at all.