US President Donald Trump has ruled out any trade negotiations with India until a dispute over tariffs is resolved, following the Trump administration’s decision to double tariffs on Indian goods from 25% to 50%.

The White House issued an Executive Order imposing an additional 25 percentage points in tariffs on Indian imports, citing national security and foreign policy concerns specifically related to India's ongoing imports of Russian oil, which the US claims presents an "unusual and extraordinary threat" and justifies emergency economic measures. The new 25% tariff will take effect 21 days after the order, applying to all Indian goods entering US ports with some exceptions for goods already in transit or certain exempt categories.

Trump was asked at the Oval Office if he expected trade talks to resume despite the tariff hike, to which he replied, “No, not until we get it resolved”. This escalation reflects sharp trade tensions between the two nations as both sides dig in on economic policy and national interests.

The US views India’s purchase and resale of Russian oil as enabling Russia to fund its war in Ukraine, thereby justifying punitive tariffs as part of broader efforts to counter Russia’s "harmful activities".

India’s Prime Minister Narendra Modi responded defiantly, emphasizing that India will not compromise on the interests of its farmers, fishermen, and dairy farmers, despite the potential heavy economic price. Modi reiterated India’s priority on protecting sensitive sectors such as agriculture and dairy, which are crucial for millions of rural livelihoods. India has expressed that it views Trump’s tariff decision as unfair and unjustified.

The tariff dispute and refusal to engage in trade talks until resolution mark a significant stand-off in US-India trade relations amid larger geopolitical concerns related to Russia and economic sovereignty. The US administration also retains flexibility to modify the tariffs depending on geopolitical developments or retaliatory measures from India or other countries.

This situation follows the collapse of prior rounds of trade negotiations, where many issues were technically agreed upon except for agriculture and tariff rates, leading to the abrupt imposition of tariffs without a formal deal.

The US has imposed a steep 50% tariff on Indian goods in two stages amid disputes over India’s Russian oil imports.

President Trump has explicitly ruled out further trade negotiations until the tariff issues are resolved, while India maintains a firm stance on protecting key domestic sectors despite economic pressure, marking a deepening trade conflict between the two nations with significant geopolitical underpinnings.

Based On ANI Report