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India holds its ground for now as Trump slaps 25% tariff and threatens penalty for trade with Russia
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Like Mr Donald Trump, whose policies revolve around his domestic Maga base, Mr Modi is also a nationalist leader who cannot afford to ignore his domestic constituency.
PHOTO: REUTERS
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- Trump threatens India with tariffs, citing "obnoxious" trade barriers and Russian ties, despite India hoping close US ties would offer lower tariff rate.
- India aims to protect farmers amid Trump's demands for greater market access in agriculture and dairy, crucial due to possible political fallout.
- One sector with large exposure to the US market is smartphones, where India has overtaken China to become the top exporter of smartphones to the US.
AI generated
NEW DELHI – The Modi government found itself in an unenviable position with limited choices after US President Donald Trump levied a 25 per cent tax on India from Aug 1 and threatened it with an additional penalty for doing business with Russia.
Still, analysts noted, India’s best bet is to continue negotiating a trade agreement, which has been stuck over the quantum of American access into the Indian market, particularly in the agriculture and dairy sectors.
