US rules out quick trade deal with India
Source: Daily Times | Original Published At: 2025-08-01 08:02:18 UTC
Key Points
- US rejects possibility of rapid trade agreement with India due to deep-rooted disagreements
- Trump administration imposes 25% tariffs on Indian imports despite ongoing negotiations
- India's BRICS membership and Russia oil trade remain contentious issues
- US-India trade relationship complicated by India's closed market policies and geopolitical priorities
- India resists Western pressure to distance from Russia post-Ukraine invasion
The United States has stated that it cannot reach a trade agreement with India overnight due to long-standing disagreements. A senior US official explained that the differences between the two nations are deep-rooted and will take time to resolve through negotiations. The official shared these remarks during a press briefing on Thursday night, underlining that achieving mutual understanding in such matters is a complex and lengthy process.
On Wednesday, former US President Donald Trump mentioned that trade talks with India were still ongoing. However, on the same day, he announced a 25% tariff on imports from India starting Friday. This move targets India more harshly compared to other major trade partners and could damage months of diplomatic efforts. It also risks weakening America’s strategic alliance with India, which plays a key role in balancing China’s influence.
The US official said that trade relations with India have always faced challenges because India maintains a relatively closed market. He added that geopolitical concerns further complicate the situation. The official noted that President Trump had previously raised concerns about India’s BRICS membership, its oil trade with Russia, and other similar issues.
Despite these concerns, the official acknowledged that discussions with India are ongoing and constructive. However, he stressed that the relationship involves complex matters that cannot be fixed quickly. He believes that even with progress, resolving these disagreements will require patience and continuous effort from both sides.
India has faced pressure from Western nations, including the US, to distance itself from Russia after the Ukraine conflict began in 2022. But New Delhi rejected the pressure, citing its long-standing relationship with Moscow and its own economic needs. India continues to prioritize its strategic interests despite global expectations.
In another development, Trump angered India by repeatedly taking credit for a ceasefire between India and Pakistan, which he announced on social media on May 10. India insists that any conflict with Pakistan must be solved bilaterally without outside interference. Meanwhile, Trump has already reached a trade deal with Pakistan, India’s regional rival.