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Four calls… No answer ! Trump is angry with Modi’s tough attitude, will he now shock India by imposing a 50 percent tariff ?
Prime Minister Narendra Modi has intercepted US President Donald Trump’s phone calls. Despite pressure from US President Donald Trump, Prime Minister Narendra Modi is adamant in his decision to buy oil from Russia. A German report claims that Modi did not answer Trump’s four phone calls. Will India face a 50 percent US tariff due to this dispute? Such fears have been expressed in various media outlets.
Trade tensions between the US and India are continuously increasing. German newspaper Frankfurter Allgemeine Zeitung (F.A.Z.) has claimed that US President Donald Trump tried to contact Indian Prime Minister Narendra Modi four times over the phone, but did not get a response from Modi. According to the report, Trump’s traditional strategy of accusations, threats and pressure is not having any effect on India. Indian officials have not yet given any official response to these claims.
The report says that the Modi government is not opening India’s market to American agricultural companies under US pressure. Also, oil imports from Russia are also continuing. Trump alleges that this purchase funds “Putin’s war machine”, but India is not ready to compromise on its energy security.
US tariffs may increase
If the situation does not change, the US can impose tariffs up to 50% on India. In this, 25% duty will be due to trade imbalance and 25% due to oil deal with Russia. Trump’s advisor Peter Navarro has said in clear words that India is unlikely to get any additional concessions now. The report said that Modi is avoiding becoming a part of the US President’s media stunt. Recently, Trump announced a deal with Vietnam on social media without any actual agreement.
Modi is avoiding such a situation. According to a report by WION, the newspaper quoted analyst Mark Frazier as saying that America’s Indo-Pacific strategy, in which India is considered an important partner against China, is now weakening. One-fifth of India’s total exports go to America. In such a situation, if new tariffs are implemented, India’s economic growth can come down from 6.5% to 5.5%.
Trump’s popularity declines in India
The report says that earlier in the Pew Research Survey, every second Indian used to trust Trump. But now anger is erupting on Indian social media over his Pakistan inclination. Indians have not taken kindly to the White House lunch with Pakistan’s Army Chief Asim Munir and his statement that “India will one day buy oil from Pakistan”.
India towards a new strategy
In these circumstances, PM Modi is turning towards new partners. The report states that Modi will attend the Shanghai Cooperation Organization (SCO) summit to be held in Tianjin this week. Experts believe that India and China have a common interest in having greater influence in global institutions. Also, Chinese investment and technology can give a new direction to Indian industry.
