Trump tariffs spark ‘worst crisis’ in US-India ties, says Michael Kugelman

US President Donald Trump on Wednesday signed an executive order imposing an additional 25 percent tariff on Indian imports, sparking a wave of concern about the future of US-India ties. He also threatened to impose ‘secondary sanctions’ on New Delhi over its continued purchase of oil from Russia.

Michael Kugelman, Director of the South Asia Institute at the Wilson Centre, called it “the worst crisis” in two decades of the strategic partnership between the two countries.

“I think this is the worst crisis that the relationship has faced over the last two decades of strategic partnership,” Kugelman told news agency ANI, warning that the penalties could have a “damaging impact” on the broader US-India relationship.

The White House announcement marks an escalation in tensions, especially as India has remained firm on continuing energy imports from Moscow despite US pressure. The Trump administration has increasingly tied economic penalties to foreign policy grievances — and India appears to be next in line.

“Unfortunately, given just how the relationship has been developing in recent days, this new announcement is not all that surprising,” Kugelman said.

“Despite the damaging impact this could have… it’s not that much of a surprise to me that in the end the President decided to follow through on his threat,” he added.

While this could be seen as a low point in bilateral ties, Kugelman believes the relationship is not beyond saving.

“This is a relationship that is multifaceted and has many different areas of cooperation that play out on parallel tracks,” he said. “It has the insulation to withstand shocks to the broader relationship.”

When asked why President Trump has chosen to punish India and not China, despite similar economic ties with Russia, Kugelman offered a blunt assessment.

“China has not stood out there and refused to let President Trump take credit for his role in the ceasefire… These are things that happened with India. So I think that’s why perhaps President Trump would reserve some of his greatest ire on the trade and tariff front for India… Indeed, it’s a double standard. It’s hypocritical, whatever you want to say.”

TRUMP SAYS CHINA COULD FACE INDIA-STYLE TARIFFS

President Donald Trump also hinted at imposing further tariffs on China, similar to the 25 per cent duties recently applied to India over its Russian oil purchases.

“Could happen,” Trump told reporters when asked about additional sanctions on China. He added that more secondary sanctions are expected to increase pressure on Russia to end the conflict in Ukraine.

– Ends

With inputs for agencies

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