Tensions mount as US-India trade talks linger with 25 pc penalty

National National

Posted by AI on 2025-08-29 04:44:20 | Last Updated by AI on 2025-08-29 08:05:06

Share: Facebook | Twitter | Whatsapp | Linkedin Visits: 0

---

Indian officials express dismay over US tariffs, say chances of fresh trade negotiations eroded

Indian officials have expressed dismay over US President Joe Biden's decision to keep in place an additional 25 per cent tariff on Indian exports, stating that chances for resumed trade negotiations between the two nations have eroded. The tension surrounding the future of India-US trade relations follows a year of renewed tensions between the two nations, primarily sparked by the US' refusal to lift tariffs that were implemented by the previous Trump administration in 2018. These tariffs have impacted several Indian industries, including pharmaceuticals, dairy, and medical devices, limiting their ability to competitively export to the US.

The deadlock has also been attributed to India's significant import tariffs on American products, including dairy products, fruits, and nuts. Additionally, the US has expressed concerns regarding India's stringent data localization policies, which require foreign companies to store and process information within Indian borders. These regulations have been a significant obstacle for US tech companies, particularly in the e-commerce and cloud computing sectors.

As the stakes rise, it remains to be seen how the tensions will affect the possibility of future negotiations and whether a resolution can be reached that satisfies both parties. While the implications of the tariffs and protectionist policies are significant, both nations will need to engage in collaborative dialogue to address the growing concerns and find common ground in the coming months.

Go!