India Refuses Trump’s Demands, Exports Now Under Fire

India's tough stand against rolling over on US demands—primarily connected to defense purchases from Russia and oil imports—called for a rapid response. Indian exports today face a barrage of tariffs and access restrictions, the US responds.

The Essence of the Conflict

During the latest trade talks, the US demanded the following terms:

• Reducing oil imports from Russia
• Cancelling defense contracts with Russian firms
• Liberalization of the agribusiness

India objected that the above requests go beyond the trade field and meddle with the nation's sovereignty.

Retaliation Tariffs from the United States

As the negotiations disintegrated, the US imposed a across-the-board 25% import tariff on goods from India citing the lack of cooperation and surging trade deficit from India.

Read More: Why India Said No to Trump’s Trade Deal And What It Will Cost

India’s Legal Defense

India indicated that all its actions fall within the ambit of the WTO obligations. The tariffs, in its view, are unilateral and punitive and do not have due process. A WTO case would ensue.

How the Tradesmen Faring

Exporters look to other European and Asian markets. Some are reducing production or shifting mix of products to domestic demand. Trade associations require financing to help offset the impacts.

Conclusion

India's uncompromising attitude on the issue of strategic autonomy has drawn a bitter response from the US. But New Delhi is not yielding and is choosing to fight economically and legally rather than succumb to external pressure.